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HomeMy WebLinkAbout01 - 7-23-02City Council Meeting August 13, 2002 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session July 23, 2002 - 4:00 p.m. ROLL CALL Present: Heffernan, Bromberg, Adams, Mayor Ridgeway Absent: O'Neil, Glover, Proctor (excused) 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Item No. 4 (Fee Schedule Adjustments), Mayor Ridgeway noted that the action is for a fee adjustment; however, the recommendation is to conduct cost recovery. City Manager Bludau explained that the action is to adopt the attached fees and conduct a future study. City Attorney Burnham reported that the fees are based on cost recovery and the expenses the City incurs for performing certain services. Revenue Manager Everroad pointed out that KPMG identified expenses based on costs that they measured in fiscal year 1995 -1996. He stated that they took the study and, for the last five years, applied cost of living adjustments based on salaries and changes in the consumer price index (CPI) to stay current with costs. He reported that they are recommending that the City stay in line with the cost recovery analysis that KPMG provided, review the fees in the future, and analyze the costs associated with providing services. Mayor Ridgeway noted that the 1996 report suggests that there was still a subsidy by the City for all fees and not a 100% cost recovery. He believed that it is time for the City to go to a 100% cost recovery instead of indexing the fees by the CPI. Mr. Everroad clarified that the City is not adjusting the cost recovery percentages that were established in 1996 -1997 in Chapter 3.36 of the Municipal Code. He stated that this action directs staff with regard to what percentage of the cost that KPMG identified should be recovered through the fee process. 2. STATUS REPORT ON TOP 10 STAFF PRIORITIES FOR 2001 -2002. City Manager Bludau reported that, during the last fiscal year, staff generated a list of its top 10 priorities and utilized a PowerPoint presentation to review the accomplishments. Priority One: Sign a JWA Settlement Agreement with the County. Mr. Bludau reported that the agreement was signed by the four agencies on June 25, 2002. He indicated that he and the City Attorney worked on this, with Council being the primary player. He stated that this priority was successfully accomplished and that this phase of the JWA Settlement Agreement has been concluded, but now the City is in a new phase. Priority Two: Begin and Complete the Public Outreach Portion of the General Plan Update Process. Volume 55 - Page 284 INDEX Top 10 Staff Priorities (35) City of Newport Beach Study Session Minutes July 23, 2002 `!011) Mr. Bludau stated that the City did not know what it would take to conduct the public outreach portion of the process and reported that this has taken longer than anticipated. He emphasized that this is a deliberative and participatory process. He reported that there are about three more public input actions to undertake before this process is done. He stated that they are on their way and this is a major undertaking for staff and the consultants. Priority Three: Complete the Annexation of the Newport Coast and Begin Providing City Services to the Population. Mr. Bludau reported that Assistant City Manager Kiff was in charge of this priority. He stated that all annexation actions were completed by December 2001 and that City services began on January 1, 2002. He indicated that they still need to deal with slope maintenance and associated issues, but 95% of the services are currently being provided. Priority Four: Have the City Council Adopt New Personnel Policies. Mr. Bludau stated that this required that all the bargaining units and the Civil Service Board review the personnel policies and then have Council adopt the policies. He reported that the policies were adopted on December 11, 2001. Priority Five: Attain Full Compliance with the New NPDES Permit Requirements and Complete the Three Water Quality Tests Required by the Regional Quality Control Board. Mr. Bludau stated that the City is in full compliance. He reported that a meeting took place this morning to discuss further actions that will be required of the City, how best to provide those actions, how best to arrange the organization to provide those actions, and what type of cost ramifications would occur. He indicated that two of the three studies contemplated in this priority are under way and will continue in the new fiscal year. Priority Six: Complete the Most Time- Sensitive Capital Improvement Projects (Bonita Canyon Sports Park, Balboa and Harbor Pier Refurbishment Projects, and the Balboa Village Improvement Project — Phase I). Mr. Bludau stated that the Sports Park is almost complete with the exception of some minor corrections and the plant establishment period which will conclude in November 2002. He noted that the original contractor went bankrupt which resulted in a six month delay. He added that additional landscaping was authorized by Council and will be completed in October 2002; however, the City will not take it over because it will not be established until March 2003. Mr. Bludau reported that Phase I of the Balboa Village Project was completed in June 2002 and noted that the contractor is performing minor revisions and corrections. Public Works Director Badum added that they are having trouble with the contractor for the Washington Street restroom and stated that they are sending him a formal letter to inform him that he has to complete the restroom in a certain amount of time or the City will contact their bonding company. He indicated that the restroom will Volume 55 - Page 285 City of Newport Beach Study Session Minutes July 23, 2002 INDEX probably not open this weekend. Mayor Ridgeway stated that it is imperative that the restroom be opened this weekend, even if a separate contractor has to be hired, since it is summertime. Mr. Bludau reported that the Newport Pier was reopened in May 2002 and the Balboa Pier was completed in June 2002. Regarding the Big Canyon Reservoir cover, Mr. Badum reported that the project was not funded in the CIP last year, but the City was working on funding sources at that time. Mr. Bludau indicated that it is a CIP project this year. Priority Seven. Improve the Plan Check and Permit Issuance Process. Mr. Bludau reported that a new plan check process was instituted July 1, 2002, and noted that the goal is to have 90% of all plan checks done within four weeks. He stated that this is probably the most difficult internal priority of the ten priorities. He believed that the City has a good process now and indicated that they are keeping a close watch on the plans that have been submitted. He stated that they will monitor the success rate and update Council over time. Priority Eight: Reduce the City's Electricity Consumption by 10% from January 2001 to June 2002. Mr. Bludau reported that they had problems getting the information they needed to measure success. He stated that they then concentrated on utilizing $120,000 to convert the overhead lighting in most of the offices to energy- efficient electronic ballasts and lighting (completed April 2002) and change out a high energy water pump station at the Big Canyon Reservoir (completed by July 19, 2002). Priority Nine: Develop and Implement a Training Program for First Line and Mid -Level Managers within the Organization. Mr. Bludau stated that this has been completed. He added that this was developed through the Human Resources Department and that supervisor training classes have occurred and two of the classes have graduated. He stated that, by the end of 2002, 120 supervisors will have gone through supervisory training. Priority Ten: Begin the Local Coastal Program (LCP) Certification Process. Mr. Bludau stated that this includes developing a timeframe with the key actions needed to certify the LCP. He reported that the law requires that the City submit a draft application before June 30, 2002. Mr. Bludau reported that he reviewed this year's top 12 priorities with Council during the second budget session. He noted that Priority One is the JWA Settlement Agreement and having communication with the Federal Aviation Authority (FAA); Priority Two is the completion of the General Plan Update community input process; Priority Three is the LCP; Priority Four is traffic signalization; and Priority Five is the Bay Knolls annexation. Volume 55 - Page 286 City of Newport Beach Study Session Minutes July 23, 2002 INDEX 3. STATUS REPORT ON THE LOCAL COASTAL PLAN (LCP) AND Local Coastal Plan DISCUSSION OF ASSOCIATED ISSUES. (68) Senior Planner Alford utilized a PowerPoint presentation, reporting that the City is mandated by Senate Bill 516 to submit an LCP for Coastal Commission certification by June 30, 2003, otherwise there is a $1,000 /month late fee if the City fails to do this. He stated that the LCP is divided into the Land Use Plan (LUP) (tide location, intensity of land use, resource protection policies, and policies related to coastal development) and the Implementation Plan (all the ordinances, regulations, and programs that implement the policies of the LCP land use fund). He indicated that staff held initial discussions with Coastal Commission staff who reviewed the Land Use Plan and sent comments that were reviewed by the Planning Commission and Council. He added that an LCP Certification Committee was appointed in January 2002 to provide direction to staff on the technical studies and LCP outline. He reported that the technical studies started in May 2002 and will hopefully be completed by August 30, 2002. Mr. Alford stated that the City has drafted the first two chapters of the LCP LUP and began work on the Implementation Plan. He reported that they want to complete the entire LUP by the end of the summer, have the draft Implementation Plan ready by fall, have both documents ready for preliminary review by Coastal Commission staff by December 1, 2002, have the revisions back by February 2003, schedule Planning Commission and Council hearings in April and May 2003, and have formal submittal to the Coastal Commission by June 2003. In response to Council Member Heffernan's questions, City Attorney Burnham believed that most cities and counties with territory within the Coastal Zone have certified LCPs. He indicated that Malibu does not have an LCP and that legislation was passed last year to have the Coastal Commission staff retain a consultant to write theirs. He stated that most communities over the past 15 to 20 years have submitted and received approval for their LCP. He indicated that Malibu's circumstance probably represents the worst downside in which the Coastal Commission sponsored legislation that removed jurisdiction from a city and prepared the LCP for that city. He added that different treatment is given depending on whether the LCP is certified or not. City Manager Bludau pointed out that the late fee in SB 516 only affects Newport Beach because it was tied into the annexation. Mr. Alford reported that chapter one of the LUP is the introduction and includes the purpose and organization, Coastal Act summary, and overview and history of Newport Beach. He stated that chapter two deals with land use and development, and addresses land uses, exclusion areas, protecting lower cost visitor- serving /recreational uses, and protecting coastal bluffs. He indicated that chapter three deals with public access and recreation, specifically lateral and vertical access, gated communities, and tideland leases. He reported that chapter four discusses coastal resource protection and deals with the environmentally sensitive habitat areas (ESHA), the harbor, water quality, and dredging. Volume 55 - Page 287 City of Newport Beach Study Session Minutes July 23, 2002 INDEX Mr. Alford stated that it might be appropriate for the City to consider segregating the Implementation Plan from the Zoning Code in the Municipal Code because, if this were to be amended, the City would not need to go to the Coastal Commission on issues that only affect inland areas. He indicated that the City could also consider creating a separate Coastal Zoning Code. He reported that, regardless if this is integrated into the Zoning Code or a separate Coastal Zoning Code, there will probably be new zoning classifications and overlays that will be applied to properties. He added that the City will also need to look at integrating harbor and beach regulations into the Implementation Plan. Council Member Adams asked if there were any environmental documents associated with this. Mr. Burnham reported that the LCP is the functional equivalent to an environmental document, so a separate Environmental Impact Report (EIR) is not needed. Mayor Ridgeway stated that he just came back from Maui and noted that Black Rock in Kaanapali only had 16 public parking stalls which were a mile away from the public access. He indicated that this made him really appreciate the Coastal Act. Robert Philibosian, Law Firm of Sheppard Mullin Richter & Hampton, stated that he met with Planning staff, the City Attorney, and the City Manager a few weeks ago to talk about what his firm can do to assist the City in framing the LCP application to the Coastal Commission and to help guide the City in ways that would be advantageous to the City's plans but still keep in mind what the Coastal Commission staff and Commissioners want to do. He reported that there are 12 Commissioners (four appointed by the Governor, four appointed by the Speaker of the Assembly, and four appointed by the president and pro -tem). He stated that it would be their job to help guide City staff with regard to Coastal Commission staff, as well as present the LCP to the Commissioners in disclosed ex parte meetings to explain what the City is trying to accomplish. He indicated that, when the City goes before the Commission to make its formal presentation, the Commissioners will have already received a preview. He noted that this will not be an easy process, pointing out that the areas that the Coastal Commission staff focused on in a letter to Mr. Alford are areas that are current hot buttons with the Commissioners. Mr. Philibosian indicated that his firm has worked on commercial, residential, and hotel projects. He stated that he has 12 years of experience working with the Coastal Commission and was the Chief Assistant Attorney General for four years when former Governor Deukmajian was the Attorney General. He reported that his partner, Joe Petrillo, in the San Francisco office helped write the Coastal Act, was the First General Counsel of the Coastal Commission, and was the Executive Officer of the Coastal Conservancy. He reported that they recently represented the developer of the former Treasure Island Hotel, now the Laguna Beach Colony Hotel. He stated that Laguna Beach was very involved because they wanted the hotel and wanted it done their way. He indicated that this is how they presented it to the Coastal Commission and reported that they were successful. He stated that they are currently working with Headlands LLC which is developing the Headlands in Dana Point with the City of Dana Point. He Volume 55 - Page 288 City of Newport Beach Study Session Minutes July 23, 2002 INDEX noted that, although they are not representing Dana Point, they are working closely with them. Mr. Philbosian stated that their objective with the City is not to do the planning, but provide the Planning staff with guidance, assistance, and focus, and provide Council with advice in terms of working with and making the presentation to the Coastal Commission staff and working directly with the Commissioners. He indicated that one of their partners, Maria Pracher, has more planning background and has a lower hourly rate than his and Mr. Petrillo's. He added that another associate, Peter Ziblatt, was a staff attorney for the California Department of Fish and Game. He stated that Ms. Pracher and Mr. Ziblatt would be the ones spending time developing the details with City staff and he and Mr. Petrillo would assist with the strategy, policy, and communication with Coastal Commission staff and Commissioners. In response to Mayor Pro Tem Bromberg's questions, Mr. Philibosian indicated that Mr. Ziblatt has worked directly with the Coastal Commission, but has not represented cities on LCPs. He stated that he has worked on everything that is involved with LCPs and the Coastal Act on behalf of their clients. He reported that Ms. Pracher has worked on coastal projects and environmental issues, but has never appeared before the Coastal Commission since he and Mr. Petrillo do the appearances. He stated that Ms. Pracher charges $340/hour and Mr. Ziblatt charges $250/hour. He added that his rate is $550/hour and Mr. Petrillo's rate is $500/hour. He indicated that this would be the first time their firm will represent a city directly. He stated that it would be impossible to estimate how much time will be needed, but he can work with staff to come up with some numbers to set up a budget. Mayor Pro Tem Bromberg stated that he sits on the LCP Committee with Mayor Ridgeway, Council Member Heffernan, and three Planning Commissioners, and asked if the Treasure Island Hotel project is as involved as the City's full LCP program. Mr. Philibosian stated that the City's LCP is a start - from - scratch LCP. He believed that his firm would be putting in substantially more time into this project than what was put into the Treasure Island Hotel project. Mr. Burnham believed that City staff and his office would be able to do the share of the work, including dealing with Coastal Commission staff, and refine the issues so they could advise the outside consultant or counsel when no common ground can be reached. He stated that he gets the sense that the City can minimize consultant involvement. He noted that he was involved with the Treasure Island Hotel project, walked precincts, and was involved in some of the referendum discussions, and added that he cannot imagine the LCP taking on the life that the Treasure Island Hotel project did. He believed that the City can handle most of the issues with the LCP Committee and staff. Mr. Philibosian agreed, noting that his firm was the staff for the Treasure Island Hotel project. Mr. Burnham added that Ms. Pracher worked extensively on the Newport Coast LCP and has familiarity with some of the issues Newport Beach faces. He reported that staff has also talked with people who worked with her on the LCP and noted that they gave her high marks. Volume 55 - Page 289 City of Newport Beach Study Session Minutes July 23, 2002 INDEX Mr. Philibosian indicated that they would act as legal advisor and lobbyist, and that this combination has worked well for their clients. Council Member Heffernan asked if City staff received rules from him on what the Coastal Commission wants so the City is not writing a draft that does not come close to becoming approved. Mr. Philibosian indicated that he has not be asked to do that at this point. Council Member Adams asked what the status is regarding the procurement of the firm's services. Mr. Bludau stated that he told Mr. Philibosian that, if the decision were his, he would put him under contract and that he would pay him for his services today. He indicated that this would be a sole source procurement. He noted that there is no State or local requirement regarding going out to bid on a Request for Proposal (RFP) for consulting/ advocacy services. He added that it is important to the community that, when the City undertakes the LCP process, it comes out of the process with a certified LCP that works for many years. Mayor Ridgeway stated that it is reasonable to assume that there is going to be a turnover in the Coastal Commission and asked what happens when this occurs. Mr. Philibosian reported that he has managed to get acquainted with every Commissioner that was appointed that he did not know beforehand, regardless of the political party doing the appointing. He assured Council that every Commissioner has people who will respond to his telephone calls and meet with him. Council Member Adams requested to see an outline of the expected costs for the LCP process in order to determine how this potential contract fits into the budget. Mayor Ridgeway suggested bringing this to the LCP Committee first. He added that Mr. Alford is having problems with the environmental consultant on parking issues and noted that there are a lot of people dependent on this report. Mr. Philibosian indicated that he has met with Coastal Commission Executive Director Peter Douglas and has had common ground with him, noting that their final analysis of the Treasure Island Hotel project received a unanimous vote from the Coastal Commission. Mayor Ridgeway noted that the City has no control over the private islands with gated communities. He believed that it is the City's intent to maintain status quo. Mr. Philibosian stated that the Coastal Commission always has a problem with gated communities because of the access issues; however, noting that he cannot give the City his legal opinion because he does not know enough about it, he stated that he suspects that this will not be a difficult issue since the islands are built out. He added that he did not notice the issue of existing gated communities in the Coastal Commission letter to Mr. Alford; however, future gated communities are going to be of concern to the Coastal Commission. Mayor Pro Tem Bromberg believed that there is case law that prevents the Coastal Commission from coming in with a huge hammer and being the final word if the determination is unreasonable. Mr. Philibosian stated that it depends on the issue, but there is a specific case regarding coastal access Volume 55 - Page 290 City of Newport Beach Study Session Minutes July 23, 2002 INDEX as a trade off for a permit. He stated that part of his firm's job is to acquaint the City with all the conditions and how it could work so the City can get what it wants while complying with the Coastal Act. Mayor Pro Tem Bromberg believed that Mr. Philibosian can be an asset to the City; however, he would still like to get clarification on how much work the City and Mr. Philibosian will do. Mr. Bludau indicated that they need to determine what staff can do and when the City would want Mr. Philibosian or his staff to look at the work product before talking to Coastal Commission staff. Mayor Ridgeway asked if Mr. Philibosian would review all of the City's underlying documents that currently exist and the proposed documents that will be created. Mr. Philibosian stated that he would not personally conduct the review because it would not be economical for the City. He indicated that it would be just as advantageous to have someone else who charges a lower hourly rate do this and focus on the problems. He noted that, in discussions with staff, it appears that not much of that would be necessary because the City's staff can focus on the problem areas and bring those to his firm's attention, rather than review every word of every page submitted to the Coastal Commission. Mayor Ridgeway stated that consistency is a concern and that, at some point, one of Mr. Philibosian's staff will have to review all of the underlying documents to ensure there is consistency throughout. He added that he believes that the City is 90% on common ground with the Coastal Commission, and that it is the 10% that the City is going to need to strategize. He pointed out that the City demands a high level LCP. Mayor Ridgeway noted that Mr. Philibosian comes with a very high recommendation and stated that he is not interested in competing for legal services, but the City wants to effectively use his time. Mr. Philibosian stated that they are sensitive to this and noted that they represented the County of Los Angeles and are aware of the responsibilities public officials have to their citizens and the treasury. He assured Council that they will be very careful about how they spend their time if they are used for this project. He added that they will work closely with City staff and Council to ensure they are only spending time that is absolutely necessary. In response to Council questions, Mr. Philibosian confirmed that attorney /client privilege applies if the City retains the firm. He indicated that he has time to do this and, if other projects come along, he will not take those cases. Mr. Bludau stated that staff has sufficient direction and will be coming back to Council with the information requested. Mayor Ridgeway indicated that he will leave it up to Mr. Alford whether this will go to the LCP Committee or a study session. Assistant City Manager Wood believed that the City has enough to take to the LCP Committee even before the City receives the consultant reports because Mr. Alford has been very productive. Council Member Heffernan asked what the role is of Council once the drafts are generated. Mr. Burnham stated that approval of the proposed LCP is scheduled for May 2003. He believed that the LCP Committee could provide Council updates on a regular basis or schedule study sessions to discuss the status and how issues are proposed to be resolved. Council Member Volume 55 - Page 291 City of Newport Beach Study Session Minutes July 23, 2002 Heffernan asked what the schedule is to get the residents and Council involved prior to May. Mr. Burnham believed that this is something that the Committee should discuss at its next meeting because there may be some issues that generate a lot of public interest. He noted that they are also considering using the LCP as a vehicle to obtain a master dredging permit. Council Member Heffernan emphasized that input is needed so the Committee and Council do not go over things twice and so they can understand what the Coastal Commission will approve. Mayor Ridgeway noted that the City almost has an inconsistency between the environmental and property rights individuals, and is unsure if the City is in a position to negotiate property rights issues. He stated that he hopes the City will be able to balance this without being in conflict with what the City wants and what the Coastal Commission demands. Mr. Bludau stated that staff feels that the purpose of the submittal is to have an LCP that it will go to bat for and be willing to live with. Mayor Ridgeway emphasized that the City wants a certified LCP. — None. ADJOURNMENT — 5:20 p.m. The agenda for the Study Session was posted on July 17, 2002, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 292 •` !!�!!2a►� CITY OF NEWPORT BEACH City Council Minutes DR Regular Meeting July 23, 2002 - 7:05 p.m. r INDEX — 4:00 p.m. CLOSED SESSION— 6:00 p.m. A. RECESSED AND RECONVENED AT 7:05 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway Absent: O'Neil, Glover (excused) C. CLOSED SESSION REPORT —None. D. PLEDGE OF ALLEGIANCE — Council Member Proctor. E. INVOCATION — Rabbi Richard Steinberg, Shir Ha- Ma'alot Temple. F. PRESENTATION Presentation of Commemorative Poster by the Municipal Water District of Orange County. Wayne Clark, the City's representative to the Municipal Water District of Orange County, presented the City with a commemorative plaque. He stated that the plaque commemorates 50 years of importing water to Orange County. G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION ACTION OR REPORT (NON- DISCUSSION ITEMI: Mayor Pro Tern Bromberg requested that the minutes and the agendas of the Harbor Commission meetings be included in the City Manager's newsletter. Council Member Heffernan requested a report on the cell phone ordinance and the possibility of the City becoming the landlord on the third generation cell phone sites. Additionally, he requested that the report include an update on the right -of -way ordinance. Council Member Heffernan announced that the Newport Coast slope issue would be included on the agenda of the August 13, 2002, Study Session. Volume 55 - Page 293 City of Newport Beach City Council Minutes July 23, 2002 Council Member Heffernan requested a report on the potential for competitive bidding of the City's insurance. He stated that due to the increase in premiums, he'd like to be made aware of the possibility of having someone else look at the market. Council Member Heffernan reported that a letter was sent by the City Manager regarding airport grant funds to the Airport Working Group (AWG) and Citizens for Jobs & the Economy (CJE). Council Member Heffernan stated that the letter requested that the entities provide the City with a certified, detailed itemized statement by August 1, 2002. I. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR. AND REGULAR MEETING OF JULY 9, 2002. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCE FOR ADOPTION 3. PROPOSED AMENDMENT TO SECTIONS 13.09.010, 13.09.020, AND 13.09.040 OF THE NEWPORT BEACH MUNICIPAL CODE (PARKWAY TREES). Adopt Ordinance No. 2002 -13 amending Sections 13.09.010, 13.09.020, and 13.09.040 of the Municipal Code. RESOLUTIONS FOR ADOPTION 4. FEE SCHEDULE ADJUSTMENTS. Adopt Resolution No. 2002 -50 establishing the City's 2002 Fee Schedule. 5. CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT RENEWAL: ANNUAL REPORT FOR 2001 -2002 FISCAL YEAR; AND ADOPTION OF RESOLUTION OF INTENTION TO LEVY FOR 2002 -2003 FISCAL YEAR. 1) Approve Corona del Mar Business Improvement District 2001 -2002 Annual Report; and 2) adopt Resolution of Intention No. 2002 -51 to Levy for 2002 -2003 Fiscal Year and set the public hearing for August 13, 2002. 6. IMPLEMENTATION OF ENHANCED RETIREMENT FOR POLICE EMPLOYEES. Adopt Resolution No. 2002 -52 Declaring the City's Intention to Approve an Amendment to the Contract between the Board of Administration, California Public Employees' Retirement System and the City Council. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Volume 55 - Page 294 INDEX Ord 2002.13 Parkway Trees (62) Res 2002 -50 Fee Schedule (40) Res 2002 -51 Corona del Mar BID (27) Res 2002-52 C -563 PERS Police Employees (38/66) Res 2002 -53 City of Newport Beach City Council Minutes July 23, 2002 SECTION 108 LOAN SECURITY AGREEMENT AND RESOLUTION. 1) Approve the Section 108 Loan Security Agreement pledging City General Funds as security for repayment of the note in the event that CDBG funds are not available to make the payment on the loan; and 2) adopt Resolution No. 2002 -53 as a required attachment to the Security Agreement. CONTRACTS AND AGREEMENTS 8. LICENSEE AGREEMENT WITH TOWER OPTICAL COMPANY, INC. (contd. from 7/9/02). Continue to August 13, 2002. 9. Item removed from the Consent Calendar by a member of the audience. MISCELLANEOUS ACTIONS 10. FY 2002 -03 CULTURAL ARTS GRANTS. Approve the recipients for FY 2002 -03 Cultural Arts Grants as selected by the City Arts Commission in accordance with City Policy I -12 — Reserve Fund for Culture and Arts. 11. TRACT NO. 15981 — BOND RELEASE — 407 BOLSA AVENUE. 1) Approve the improvement plans and specifications and accept the public improvements constructed in conjunction with Tract No. 15981; 2) authorize the City Clerk to release the faithful performance bond (Bond No. 1034392); and 3) authorize the City Clerk to release the labor and material bond (Bond No. 1034392) in six months, provided no claims have been filed. 12. PROPOSED AMENDMENT OF COUNCIL POLICY G-6 (MAINTENANCE AND PLANTING OF PARKWAY TREES). Amend Council Policy G -6. 13. COUNCIL CONSIDERATION OF FORMING A BUDGET COMMITTEE. Take no action to establish a Budget Committee, but instead work through the Public Information Officer, local media and the City's web site to better publicize budget review meetings or workshops along with the budget and CIP themselves. Motion by Mayor Pro Tern Brombert to approve the Consent Calendar, except for the item removed (9). The motion carried by the following roll call vote Ayes: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: O'Neil, Glover Volume 55 - Page 295 INDEX C -3550 CDBG Section 108 Loan Security Agreement (38/87) C -3544; Binocular Viewers (38) Cultural Arts Grants 2002 -03 (62) Tract No. 15981 407 Bolsa Avenue (TRM 15981) Council Policy G -6 Parkway Trees (62/69) Budget Committee (40) City of Newport Beach City Council Minutes July 23, 2002 INDEX J. 9. AMENDMENT NO. I TO PROFESSIONAL SERVICES AGREEMENT WITH TETRA TECH, INC. FOR ADDITIONAL DESIGN SERVICES RELATED TO THE BIG CANYON RESERVOIR DISINFECTION AND WATER QUALITY FACILITIES (C- 3037). Dolores Otting, Newport Beach resident, referred to the information contained in the staff report and stated her concern for the City not complying with a 1994 Department of Health Services (DOHS) mandate to cover the Big Canyon reservoir. Additionally, Ms. Otting asked if the new disinfection system being proposed for Big Canyon had been studied and, also, what system was installed at the 16th Street reservoir a few years ago. She stated that she couldn't understand how the City could continue to not comply with the mandate. She also stated that letters from Congressman Cox have indicated that the City is not meeting State or Federal water requirements. Mayor Ridgeway stated that the current City Council is committed to getting a cover on the reservoir next year. Council Member Adams requested a report from staff on what the proposal from Tetra Tech includes, as well as specifics on the funding and schedule for the cover. City Manager Bludau stated that the staff priorities for 2002.03 include moving forward with the design of the reservoir cover and the disinfection system, and implementing the project. He added that the City has not been fined by the DOHS or given a date for completion, but is committed to completing the project. Per Council Member Adams' request, City Manager Bludau additionally explained that a number of water agencies use the chloramination system, and it is safer than the current gaseous system used by the City. Utilities Engineer Sinacori stated that the City has never been in violation of any standards for its water delivery. He noted that the Metropolitan Water District, which supplies the City with 25% of its water supply, also uses the chloramination system and the cover at the Big Canyon reservoir will mean that the ammonia will not have to be removed. Motion by Mayor Pro Tem. Bromberg to approve Amendment No. 1 to the Professional Services Agreement with Tetra Tech, Inc. (formerly ASL Consulting Engineers) increasing their fee by $129,800 for additional design services related to the disinfection and water quality improvements at Big Canyon Reservoir (BCR). The motion carried by the following roll call vote: Ayes: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: O'Neil, Glover Volume 55 - Page 296 C -3037 Big Canyon Reservoir Disinfection & Water Quality Facilities (38) City of Newport Beach City Council Minutes July 23, 2002 K. PUBLIC COMMENTS INDEX Dr. Jan Vandersloot, 2221 E. l&h St., announced the victory at the Orange County Sanitation District meeting last week, when the Board of Directors voted against the 301H Waiver. He thanked the City for starting the effort and providing the model resolution. Dr. Vandersloot, as a member of the Balboa Arbor Society, announced that the Society has filed a lawsuit against the City with the goal of trying to save the ficus trees on Main Street. He asked that members of the public who are interested in preserving the trees contact him at ionv30aol.com or 949 - 548 -6326, and offer to make a donation. Dr. Vandersloot provided a list of the benefits of an urban forest. Lastly, he stated that if the roots are in the sewer lines and have caused cracks in the lines, then raw sewage is flowing into the ground. He stated that he hoped that the City and the public would listen to their efforts. Mayor Ridgeway expressed his lack of understanding for why Dr. Vandersloot and others would be addressing the City Council on the issue, when the item had already been voted on by the City Council. He stated that it shows a lack of respect for the system. Dr. Vandersloot stated that he is only exercising his first amendment rights, and attempting to build public support for seeking relief through the judicial system and the Coastal Commission. Jim Hildreth, Grand Canal resident, stated that Development Engineer Hoffstadt was asked to confirm in writing that the assessed property value would not increase due to the underground utility project on Little Balboa Island, but that he has not done so. Mr. Hildreth requested that he receive this written confirmation. Additionally, Mr. Hildreth reminded the City Council of the 1998 letter from Harbor Inspector Armand that states that the mooring was approved by the City in 1976 and is listed as a pier permit. Mr. Hildreth stated that the documents to support this have not been found and he can't understand why. Mr. Hildreth stated that he also received an unsigned letter from the Harbor Resources Manager and that there is no such position in the City. He stated that the City still claims that the J. M. Hildreth location has an annual residential pier permit, but the documents have not been presented. Cheryll McDowell, 1537 E. Ocean Blvd., displayed the information mentioned earlier by Dr. Vandersloot on how to contact him. She thanked the City Council for the Balboa revitalization program and stated that everything looks great. She stated that the fight to save the ficus trees is supported by the businesses in the area, and encouraged the public to help with the legal expenses, noting that there are only two more City Council meetings prior to the scheduled removal of the trees. Ms. McDowell also commended the Pacific Bell Company for the beautification project that they've undertaken at their building on Balboa Boulevard. She encouraged other businesses to look at the painting that has been done. Volume 55 - Page 297 City of Newport Beach City Council Minutes July 23, 2002 INDEX Linda Grant, 310 Fernando Street, stated that what the residents of the City have to say should matter. She asked that the City Council not listen to just a few people, but listen to everyone. She stated that many people want the ficus trees to remain and they won't let the City remove them. She stated that the trees provide shade and help drivers to see pedestrians more clearly. Ms. Grant couldn't understand why the City Council doesn't like trees and asked that they reconsider their decision to have them removed. Per Mayor Pro Tern Bromberg's question, Assistant City Manager Wood stated that 25 trees are scheduled for removal, with 36 trees replacing them. Mayor Ridgeway additionally noted that the City's urban forest consisted of 31,000 trees in 1998, that there are now 34,000 and the number is still growing. Gabe Green, Sherman Oaks resident, performed a musical number on the lawsuit that has been filed to the tune of, "Get Me to the Church On Time ". Mary Porter, 700 Larkspur Avenue, expressed her concern for mansionization, the new term for the large buildings that are going in and changing the look of some neighborhoods in Corona del Mar. She stated that the buildings are being constructed on R -2 lots for single - family resident homes, and that most of the lot sizes are not very large. She stated that although she understands that it's legal, it does nothing for the quaint, ocean seaside home style. Ms. Porter stated that residents living too close to one another produce negative effects. She stated that Balboa Island has been able to control the build out and maintain a beautiful and friendly village, and asked that the City Council take steps to control or stop the trend of new large, boxy and tall buildings in Corona del Mar. She stated that producing a family - style community should be balanced with investment potentials. Council Member Adams noted that the issue is being addressed by the general plan update committees. Bud Grant, 310 Fernando Street, stated that he understood from the Mayor that the ficus tree issue was not reagendized per the direction of the City Attorney. Mr. Grant stated that he has been waiting to hear from the Mayor or the City Attorney on specifically why the issue can't be reagendized. Dolores Otting, Newport Beach resident, thanked Assistant City Manager Kiff for providing the Newport Coast Advisory Committee minutes and agendas on the internet. She provided a handout with information on the Ralph M. Brown Act from the California First Amendment Coalition and the League of California Cities, and stated that the subcommittees in the City have a problem with adhering to the Volume 55 - Page 298 City of Newport Beach City Council Minutes July 23, 2002 11011 laws of the Brown Act. She read from some of the excerpts provided regarding requirements for agendas, staff reports and public testimony. Ms. Otting stated that she attended the General Plan Advisory Committee meeting the night before and was not allowed to speak during consideration of an agendized item. Mayor Ridgeway assured Ms. Otting that her information would be distributed. Council Member Heffernan stated that he has previously requested that the City Clerk's office be made aware of all scheduled City meetings. He stated that it would be more efficient to have one source for all scheduling. Regarding the public comments made earlier about the ficus trees on Main Street, Mayor Ridgeway stated that the City Council approved the revitalization program for Balboa village, and that removing the ficus trees and replacing them with more trees is a part of the program. He added, however, that removing the trees is also dealing with a public safety concern and a liability concern. Mayor Ridgeway stated that other trees are also being added as a part of the project. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Adams stated that he represented the City, in the absence of Mayor Ridgeway, at the Orange County Sanitation District (OCSD) meeting of July 17, 2002. He stated that at that meeting, the Board of Directors voted not to pursue an additional waiver, which would have allowed for discharge of sewage effluent not treated to the secondary level into the ocean. He stated that it's a very controversial issue and one that Newport Beach took strong leadership on, countywide. He stated that sewage rates will increase over time due to the decision. Mayor Ridgeway confirmed that the residential sewer rates will increase from approximately $16 to $32 over the next eleven years, but that it provides for full secondary treatment of all effluent coming into the County. He additionally noted that Mayor Adams represented the City well at the OCSD meeting. Mayor Ridgeway stated that he also participated in a radio debate on the issue and noted that the arguments for full secondary treatment were compelling. Council Member Adams, Chair of the Ad Hoc General Plan Update Committee (GPUC), reported that GPUC met on July 22, 2002. He stated that at that meeting, the committee reviewed the plans for the phone interview that will be conducted throughout the City. He stated that the discussion was productive and he's convinced that every effort has been made to make the survey fair and balanced, and provide information that will be valuable when updating the general plan. Council Member Adams noted that some people are concerned about the validity of the phone survey, but noted that the questions will be Volume 55 - Page 299 City of Newport Beach City Council Minutes July 23, 2002 provided with the answers and a judgment can be made. He additionally pointed out that the results of the phone survey will have great statistical significance since 1250 contacts will be made, but that it will not inappropriately dominate the other elements of the visioning process. He encouraged those interested in the general plan update process to attend the meetings. Council Member Heffernan reported that the Newport Coast Advisory Committee (NCAC) is still discussing the slope issue. He stated that the issue will also be looked at by the City Council at the Study Session to be held on August 13, 2002. He stated that it needs to be determined how the slope maintenance will be handled, how it will be paid for and how the City will abide by its annexation agreement. He stated that the NCAC would be meeting again the first week in August, and the agenda would include the slope issue as well as a discussion on the mechanics of the refund owed to the Newport Coast homeowners. Council Member Heffernan, Chair of the Finance Committee, reported that the Finance Committee would be devoting one meeting to each of the four largest budget items over the next several months. He stated that the goal is to better understand the larger budget items in preparation for the 2003 -04 budget. Mayor Ridgeway reported that the Coastal/Bay Water Quality Citizens Advisory Committee also played a role in the decision by the OCSD, as announced earlier by Council Member Adams. Mayor Ridgeway, Chair of the Local Coastal Program Certification Committee, stated that the Local Coastal Plan (LCP) must be submitted to the Coastal Commission by June 30, 2003. He stated that there will be more meetings regarding the subject, and that the City is attempting to create an LCP and implementation strategy so that the City can issue the local coastal permits rather than homeowners having to go to the Coastal Commission. Mayor Ridgeway stated that the City is required to have an LCP and the process will run parallel with the general plan update. Mayor Ridgeway announced that the cable TV public meeting originally scheduled to take place during the current meeting has been rescheduled to August 27, 2002. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 14. PLANNING COMMISSION AGENDA FOR JULY 18, 2002. Assistant City Manager Wood stated that the Planning Commission meeting of July 18, 2002, began with a reorganization of the Commission. She announced that Steven Kiser is the new Chairman, Earl McDaniel is the new Vice Chairman and Shout Agajanian is the new Secretary. Volume 55 - Page 300 INDEX Planning Commission (68) City of Newport Beach City Council Minutes July 23, 2002 INDEX Assistant City Manager Wood stated that the first item on the agenda was an appeal of a Modifications Committee decision. She explained that a modification was originally approved for a patio cover at a property on the peninsula, but both a patio cover and a deck extension were built. The applicant applied for a second modification to allow for the deck extension, and the Modifications Committee approved it with conditions. The applicant appealed the decision to the Planning Commission, who denied the request. Assistant City Manager Wood stated that the second item involved Cafe Italiano's request to exceed the floor area ratio and waive parking. She stated that the Planning Commission approved the request. The third item was a request for a new condominium project on Carnation Avenue and the Planning Commission approved it. She noted that most of the testimony given by the public on the project related to concerns about access to neighboring properties during construction. She stated that staff would do as much as possible to keep the access open to the residents. Assistant City Manager Wood stated that the fourth item involved seven "quick serve" eating establishments in the new Bluffs shopping center and the issuance of a master use permit. She stated that this was a way to do some permit streamlining for the businesses and as long as they comply with the conditions of the master use permit, their use permit can be issued by the Planning Director. Council Member Heffernan requested that the conditions of approval for the master use permit be provided to him. Council Member Adams confirmed with Assistant City Manager Wood that the entitlement for the center was a part of the Bonita Canyon annexation agreement. He asked what the makeup of the center would be and how large it is. Mayor Ridgeway responded by stating that the shopping center is approximately 50,000 square feet and would include a mix of food and retail businesses. Assistant City Manager Wood stated that the Planning Commission also recommended approval of an amendment to the Transportation Demand Management Ordinance and initiated a code amendment for some minor changes to real estate signs. N. PUBLIC HEARINGS 15. TRANSPORTATION DEMAND MANAGEMENT (TDM) ORDINANCE — CODE AMENDMENT NO. 2002 -003 (PA2002 -126). Mayor Ridgeway opened the public hearing. Hearing no testimony, Mayor Ridgeway closed the public hearing. Volume 55 - Page 301 Ord 2002 -14 Transportation Demand Management (TDM) (94) City of Newport Beach City Council Minutes July 23, 2002 La 12 Motion by Council Member Adams to introduce, waive first and second readings, and adopt Urgency Ordinance No. 2002 -14 regarding the Transportation Demand Management (TDM) Ordinance. The motion carried by the following roll call vote: Ayes: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: O'Neil, Glover CONTINUED BUSINESS 16. BOARD OF LIBRARY TRUSTEES VACANCY. City Clerk Harkless read the ballot votes as follows: Cecilia Flanagan (Heffernan) Theresa Chase (Bromberg, Ridgeway, Adams, Proctor) City Clerk Harkless announced the appointment of Theresa Chase to fill the vacancy on the Board of Library Trustees. 17. COUNCIL CONSIDERATION OF CITY MANAGER'S RECOMMENDATION TO REORGANIZE THE COMMUNE- SERVICES DEPARTMENT. City Manager Bludau stated that due to the recent retirement of Community Services Director Menitz, consideration of reorganizing the Community Services Department is appropriate. He stated that in 1994, Library Services and Parks & Recreation were combined into one department for cost saving reasons. City Manager Bludau stated that the staff report lists the advantages and disadvantages of maintaining the department as one or separating it into two. He stated that based upon the size of the department, the growth of the services offered and the quality of life enjoyed in the City, that he feels it is time to separate the departments again. He noted that it will cost approximately $140,000 to do this. Per Council Member Heffernan's question, City Manager Bludau estimated that approximately 20,000 people are currently enrolled in the City's recreation programs. Council Member Heffernan asked if the skills needed to run recreation & senior services were different than those needed to run a library system. City Manager Bludau that they are and that there are people who could probably run both, but it would narrow the selection. He added that he also discussed the matter with the Board of Library Trustees, the City Arts Commission and the Parks, Beaches & Recreation Commission, and all agreed that it would Volume 55 - Page 302 INDEX Board of Library Trustees Appointment (24) Community Services Department Reorganization (66) City of Newport Beach City Council Minutes July 23, 2002 be better to separate the department into two. City Manager Bludau stated that these commission members feel that enough time isn't being given to their issues. Dolores Otting, Newport Beach resident, stated that it was possibly not the right time to reorganize the Community Services Department, given the recent event that occurred in the recreation division. She also felt that more information should be provided before the decision is made. Ms. Otting stated that she wasn't aware of the circumstances surrounding the retirement of the Community Services Director and asked if she was forced to retire. Council Member Adams stated that it is the right thing to do, although he agreed that increasing the size of bureaucracy is a disadvantage, as listed in the staff report. He stated that he could only support the reorganization recommendation with a commitment that only one new staff member would be added. City Manager Bludau stated that it is his intention to add only one position. Mayor Pro Tem Bromberg stated that he supports the City Manager's recommendation due to the increase in services and the quality of services offered by the library and community services. Mayor Ridgeway stated that the reorganization reflects good management and good governance. Motion by Mayor Pro Tern Bromberg to approve the City Manager's recommendation to restructure the Community Services Department into two departments: Recreation & Senior Services and Library Services. The motion carried by the following roll call vote Ayes: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: O'Neil, Glover 18. UNSCHEDULED VACANCIES ON THE PARKS, BEACHES & RECREATION COMMISSION AND THE PLANNING COMMISSION; AND APPOINTMENT BY MAYOR OF AN AD- HOC APPOINTMENTS COMMITTEE. Motion by Mayor Ridgeway to accept the resignations of Stuart Macfarland from the Parks, Beaches & Recreation Commission effective July 11, 2002 (term expires June 30, 2003); and Mike Kranzley from the Planning Commission effective July 18, 2002 (term expires June 18, 2002); direct the City Clerk to advertise the vacancies pursuant to Council Policy A -2; and appoint Mayor Ridgeway and Council Members O'Neil and Glover to serve on the Ad Hoc Appointments Committee. Volume 55 - Page 303 INDEX PB &R Commission & Planning Commission Vacancies/ Ad Hoc Appointments Committee (24) City of Newport Beach City Council Minutes July 23, 2002 The motion carried by the following roll call vote: Ayes: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: O'Neil, Glover Lq R. ADJOURNMENT - 8:20 p.m. - None. The agenda for the Regular Meeting was posted on July 17, 2002, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 304 INDEX