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HomeMy WebLinkAbout01 - 09-24-2002City Council Meeting September 24, 2002 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session RAFT September 10, 2002 - 4:00 p.m. INDEX ROLL CALL Present: Heffernan, Bromberg, Adams, Mayor Ridgeway Absent: O'Neil, Glover, Proctor CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Mayor Pro Tem Bromberg stated that he would be recommending the continuance of Item No. 13, Revisions to Section H of the City of Newport Beach Council Policy Manual, at the evening meeting. He explained that in January, the Harbor Committee was asked to develop a mechanism for determining boat size in regard to encroachments. He suggested that this information be provided prior to making revisions to Council Policy H -1. Council Member Heffernan stated that he would be pulling Item No. 10, Budget Amendment to Expand the Department's Efforts in Inspecting Fuel Modification Areas in Newport Coast, from the Consent Calendar at the evening meeting. He explained that due to the issue of fire safety, he would be requesting information on the possibility of allocating more money and having the report done sooner. Council Member Heffernan stated that he would also be asking for additional information on Item No. 14, Workers Compensation Excess Insurance Renewal. He explained that he would be seeking a clarification on the significant increases in overall coverage amounts and if they're warranted. Mayor Ridgeway noted that the budget amendment for Item No. 10 was for the 2002 -2003 fiscal year. Regarding Item No. 7, Jamboree Road Reclassification Study, Council Member Adams requested that an evaluation of the flyover to the 73 Freeway and a grade separation on Jamboree Road be included in the study. Public Works Director Badum stated that the additional cost would be minimal. 2. ADOPTION BUILDING/FIRE CODE CHANGES. Building Director Elbettar announced that the adoption of the Building and Fire Codes is also on the agenda for the evening meeting. Using a PowerPoint presentation, he stated that the code adoption process occurs every three years and incorporates changes based on such things as events and improvements in technology. The codes being proposed for adoption include the 2001 California State Codes for Building, Plumbing, Mechanical, Volume 55 - Page 359 Adoption Building/Fire Code Changes (26141) City of Newport Beach Study Session Minutes September 10, 2002 Electrical and Mre. INDEX Building Director Elbettar stated that the codes would be effective on November 1, 2002, and that any amendments would need to be made prior to then, to avoid any gaps locally. He added that amendments to the building standards must be justified by either local geologic, topographic or climatic conditions. Building Director Elbettar displayed a timeline for local adoption of the codes, which included a review of the codes by the Building Code Board of Appeals on August 29, 2002, introduction of the ordinance at the current meeting and adoption on September 24, 2002. He stated that there are few changes to the prior code adoption, since the 1997 Building Code was basically being readopted with an update to the structural provisions. Building Director Elbettar stated that the code adoptions will require changes to grading and excavation, residential building report, flood damage prevention and construction site cleanup in the Newport Beach Municipal Code. Building Director Elbettar stated that the City participated in the Orange County Uniform Code Program, which included 18 proposed amendments. The City added one additional amendment for sprinkler system requirements. He proceeded to summarize some of the highlights of the major code changes. He stated that the fire sprinkler system requirement was amended to clarify the definition of "floor area" and its applicability to residential applications. Per Mayor Ridgeway's question, Building Director Elbettar stated that an exception to the floor area of residential occupancies was added to state that it would only include the area within the exterior walls, and not any patio covers or overhangs. Council Member Heffernan asked if the reference to floor area dovetails into the Uniform Building Code and affects the Greenlight ordinance. Building Director Elbettar stated that it has no affect on the Greenlight ordinance, which pertains to planning standards. Building Director Elbettar noted the change that amends the seismic provisions for structural steel buildings, which would only affect high rise buildings. He also noted the change to the pool fencing definition. Mayor Ridgeway asked for a clarification on how the pool fencing change affects waterfront homes. Building Director Elbettar stated that safety concerns override any provisions in the planning code. Planning Director Temple stated that such situations are usually handled through the modification permit process. Mayor Ridgeway confirmed that the height of the fence is not reduced, although a particular material for that part of the fence above three feet might be required. Additionally, Mayor Ridgeway confirmed that the fencing requirements would also apply to fountains and waterfalls. Building Director Elbettar continued with a summary of the highlights by stating that the excavation and grading code is being amended to be Volume 55 - Page 360 City of Newport Beach Study Session Minutes September 10, 2002 INDEX consistent with Council Policy L -22, Protection of Water Quality: Water Quality Management Plans for New Development and Redevelopment. Changes to the Report of Residential Building Records (RBR's) Chapter of the Newport Beach Municipal Code relate to refunds, expirations, cancellations and reinspections. Changes to flood damage prevention include the addition of new definitions. Building Director Elbettar stated that the proposed changes to construction site cleanup include the elimination of the deposit requirement. Per Mayor Ridgeway's question, Building Director Elbettar stated that the amount of the site cleanup deposit depends on the value of the construction, and can range between $100 and $5,000. Additionally, he stated that post construction problems are enforced by administrative citations and stop work orders. City Manager Bludau added that a citation can be issued for each day that the violation occurs. Fire Chief Riley stated that the Newport Beach Edition of the California State Fire Code meets the needs of the community, is consistent with current reference standards and correlates to other adopted codes. He additionally noted that there is consistency throughout Orange County. Fire Chief Riley stated that of the 45 amendments, only eight are new and the majority are editorial. Per Council Member Heffernan's question regarding the Newport Coast slopes, Fire Chief Riley stated that the City has always been consistent with the Orange County Fire Authority's standards for fuel modification. Using a PowerPoint presentation, Fire Marshal Lockard stated that he would be covering some of the new changes to the code. He stated that the first change involves smoke detection systems and a clarification that the maintenance of the systems is the responsibility of the building owner. It also included a clarification on the monitoring of sprinkler systems. These changes are covered in Sections 9.04.080 and 9.04.100 of the Newport Beach Municipal Code, respectively. Fire Marshal Lockard stated that Section 9.04.170 requires that a report be done, prior to development on or near lands that may emit combustible soil gases, on how gas mitigation will be handled. Section 9.04.200 was changed to properly define the lead -acid batteries that are regulated. Fire Marshal Lockard reported that Section 9.04.240 was modified to be consistent with the other fire agencies in Orange County in regard to the requirements for the protection of aboveground tanks. Additionally, Section 9.04.290 determines the exempt amounts of hazardous materials for occupancy storage. The change to Section 9.04.340 deletes the exceptions to automatic controls for treatment systems. Fire Marshal lAckard reported that Section 9.04.360 adopts the appropriate standards for the City from the National Fire Protection Assciation (NFPA). Council Member Heffernan asked if the new requirements for hazardous waste were in place for the chlorination system at the Big Canyon Reservoir. Fire Marshal Lockard stated that they were not, but that the covering of the reservoir would make it compatible with the City's newer treatment facility and pumping station, which are safer. Volume 55 - Page 361 City of Newport Beach Study Session Minutes September 10, 2002 S. Brion Jeannette, Building Code Board of Appeals board member, stated that the Board reviewed the code changes at their meeting of August 29, 2002, and approved the recommended changes. He added that he is also representing the Orange County Chapter of the American Institute of Architecture (AIA) Codes Committee, and that they endorse the changes as well. Mayor Ridgeway asked Mr. Jeannette if there were any additional changes that he would recommend. Mr. Jeannette responded by stating that one remaining issue involves the structural aspects regarding seismic activity and that there will be additional requirements that haven't been adopted yet, but are being looked at. Mayor Ridgeway asked if anyone would be required to retrofit their structures based on the new codes. Building Director Elbettar stated that the codes take effect on the date of adoption for any new construction or substantial structural changes and there is no retroactivity, although voluntary upgrades are encouraged. CITY PARTICIPATION IN A LEASE -TO- PURCHASE PROGRAM AS A MEMBER IN THE ORANGE COUNTY AREA HOUSING AND FINANCE AGENCY. Assistant City Manager Wood stated that housing prices in the City are strong, which makes it difficult for many people to afford a home. She stated that staff has been working with Chilton & Associates, other cities in Orange County and the County to establish a new Joint Powers Authority (JPA) that would implement a lease purchase program to help people with home purchase. She stated that the program is targeted for moderate and above - moderate income families. Mayor Ridgeway asked if the maximum loan amount of $309,750 could be increased. Assistant City Manager Wood stated that a higher loan amount is being looked at, but hasn't been approved. She explained that the limit is set through regulations dealing with the tax- exempt status of the bonds that fund the program. Mayor Ridgeway additionally asked if the program would help the City meets its affordable housing requirements. Assistant City Manager Wood stated that it wouldn't produce new units, which is the primary focus of the housing element, but that it would be a beneficial program to implement since it applies to one of the targeted income groups. Mayor Ridgeway stated that a family of four would qualify as a moderate - income household with an income as high as $105,860. Per Mayor Pro Tem Bromberg's question, Assistant City Manager Wood stated that the program would help to make existing units more affordable to people in the target income categories, which would be beneficial in meeting the State's housing element requirements. Mayor Ridgeway stated that the Regional Housing Needs Assessment, adopted in 2001, accommodates new growth and requires all cities to increase their number of units. Volume 55 - Page 362 INDEX Lease -To- Purchase Program/Orange County Area Housing and Financc Agency (54) City of Newport Beach Study Session Minutes September 10, 2002 INDEX Jim Chilton, President & CEO of Chilton & Associates, stated that his company has been retained by Bay Area Housing to develop a lease -to- purchase concept for houses of a higher price than $309,750. He stated that they think they've solved the problem, and might be able to increase the mortgage to $400,000 or $500,000. Per Mayor Ridgeway's inquiry, Karl Higgins, Chilton & Associates, stated that the loan is a 97% first, a 3% silent second and a gift at the close of the lease option period of up to 4.5% of the purchase price of the home. Mr. Higgins stated that the Orange County program is the seventh JPA lease -to- purchase program that Chilton & Associates has developed. He stated that they're encouraged by the fact that they've found 42 properties in the City that would qualify at $309,750 or below. Mr. Higgins stated that the current effort by the cities in Orange County is a private- sector response to the lack of a down payment for a traditional mortgage, which is the primary barrier to purchasing a home for many people in high cost housing areas. He stated that there are benefits to the public sector and that it would not require allocations from the general fund, is not an obligation of the City and staff time is not required to manage the program. Mr. Higgins stated that three cities in Orange County have already approved the program, and that six others and the County are also expected to participate. He stated that the JPA could be running sixty days after the final approvals are made. Mayor Ridgeway asked if the City would have any liability risk if no one in the City participated in the program. Mr. Higgins stated that the bonds are lease revenue mortgage bonds that are an obligation of the JPA and the City would be at no risk. He further explained that although the City would belong to the JPA, the JPA is a separate legal entity. Per Mayor Pro Tem Bromberg's question on how long Chilton & Associates has been developing such programs, Mr. Higgins stated that Jim Chilton did the first single - family mortgage revenue bond in California in the late 1970's and the type of program being presented at the current meeting has been administered for three years. Mayor Pro Tem Bromberg asked if there had been any problems with previous programs. Mr. Higgins stated that the downside is that it doesn't provide for immediate home ownership. The participant must go through a three -year lease option period. Mr. Higgins stated that Chilton & Associates is working with 131 cities and none of them have regretted entering the program. Mayor Ridgeway asked if residents complain that the wealthy are being assisted. Mr. Higgins stated that this is not a problem because each city is allowed to set individual policies relative to how that city wants the program to be run and who can participant. Mayor Ridgeway confirmed with Mr. Higgins that the lease payments paid during the three -year period by the participant are being applied to the purchase of the property. Mr. Higgins noted that the participant is technically paying rent to the JPA. Additionally, the participant can convert earlier but to do so, must pay the JPA back the portion of the unearned interest for the unexpired portion of Volume 55 - Page 363 City of Newport Beach Study Session Minutes September 10, 2002 4. the lease. Planning Director Temple stated that the Planning Department provides information on low- income opportunities and rental assistance to the public. She reported that during the last few years, calls have been regularly received asking if the City has a first time buyer program. Mayor Ridgeway suggested that the item be brought back to the City Council for action and that he could support the program. Mayor Pro Tem Bromberg stated that it could provide an opportunity for people who work in the City to live in the City. BEACH RESTROOM CLEANING. General Service Director Niederhaus stated that there are 14 beach restrooms and 130 comfort stations, 62 male and 68 female. He displayed a map showing the location of the restrooms and noted that most of the restrooms are on the peninsula. General Services Director Niederhaus stated that the evening agenda includes an item recommending approval for an architect to begin designing improvements at Corona del Mar, which would include the restrooms. Referring to the map, he noted that the only area that has a void is the Wedge area. He stated that the recommendation to add a restroom to that location was discouraged by the Parks, Beaches & Recreation Commission. He stated that 130 comfort stations are often not sufficient to service the crowds that visit the beaches. Using a PowerPoint presentation, General Services Director Niederhaus displayed a slide showing the history of the beach restroom cleaning. He pointed out that the restrooms were cleaned completely by City staff in the early 1980's. Four temporary restrooms were also in place during that time. He stated that in 1992, budget reductions caused a reduction in staff. He noted that public complaints increased at that time. In 1997, $20,000 was approved to fund a contractor to supplement City maintenance efforts. In July 2000, another contractor was hired to perform weekend restroom maintenance, but refused to do the work due to the poor conditions. General Services Director Niederhaus stated that the City sought qualified bidders who could do the work and hired a contractor in March 2001 to do the weekend cleaning. City employees continued to do the cleaning during midweek. In December 2001, a status report was presented to the City Council regarding increasing the maintenance efforts, but no action was taken, and $20,000 was requested in the 2002.2003 budget to increase beach restroom cleaning, but it was not approved. General Services Director Niederhaus presented the summer restroom cleaning schedule. It indicated that City employees begin cleaning the restrooms at 5:00 a.m. midweek, and the contractor begins at noon with continuous cleaning until 8:00 p.m. On the weekends, another contractor works from 3:00 a.m. to 11:00 a.m., and the same contractor that performs the midweek work cleans the restrooms continuously from noon to 8:00 p.m. The winter restroom cleaning schedule has City staff performing the work during the midweek and a contractor doing a single cleaning per day on the weekends. General Services Director Niederhaus stated that the restrooms Volume 55 - Page 364 INDEX Beach Restroom Cleaning (44) City of Newport Beach Study Session Minutes September 10, 2002 INDEX are only graded as being satisfactory during the winter. He further explained that the winter period is considered to be from the end of September to the middle of April. General Services Director Niederhaus displayed the annual City restroom maintenance costs, which showed that 77% is used for the cleaning done by City staff and 23% is for the two contractors. The total is approximately $250,000. General Services Director Niederhaus stated that staff is proposing that the summer restroom cleaning be increased by adding a two - person contract crew to the Balboa Pier/Washington Street area, adding a single contract person to the Balboa Island area, commencing afternoon and evening contract cleaning earlier in the year, and continuing contract cleaning until mid - September. He stated that these increases would cost between $25,000 and $35,000. Council Member Adams stated that the City is the steward of the beach to a vast number of visitors and that Newport Beach should do it as well, if not better, than any other city. He stated that decent restroom facilities should be provided and considered a basic function of the City. Council Member Adams stated that he would support staffs proposal for increasing the cleaning, and asked if the conditions of the restrooms was any better with the increased cleaning schedule that had already been done. General Services Director Niederhaus stated that Monday mornings are the worst, followed by Sundays and then Saturdays. He explained that the restrooms are open 24 hours a day. Council Member Adams suggested that possibly the restrooms should be cleaned later into the evenings. He additionally noted the statement in the staff report about the restroom facilities at the Balboa Pier and Washington Street as being inadequate in size. General Services Director Niederhaus explained that due to renovations made to comply with the Americans with Disabilities Act (ADA), the number of stations was decreased. Council Member Adams asked how the parking revenue at the beaches was spent. City Manager Bludau stated that money currently spent for services and tidelands is in excess of the revenue received, which includes the parking meter revenue. Council Member Adams stated that the people that pay for the parking are the users of the restrooms, and it should be a priority for how that money is spent. He stated that more money needs to be spent. City Manager Bludau suggested that if it is a priority of the City Council, a budget amendment could be submitted to the City Council for approval at the next regular meeting. Council Member Adams asked if a different contractor might do a better job. General Services Director Niederhaus stated that a survey done in 2001 and 2002 indicated that City staff can perform the function best. Council Member Adams stated that there is pressure to contract services, but it shouldn't be done when the level of service is reduced. City Manager Bludau stated that it is a problem of accepting the low bid and not being able to adequately write specifications for levels of cleanliness. Mayor Pro Tern Bromberg asked why the restrooms at the Beek Community Center were closed. General Services Director Niederhaus explained that they are on an alley and attract the homeless. He stated that locking them at night would negate the problem. Volume 55 - Page 365 City of Newport Beach Study Session Minutes September 10, 2002 Council Member Heffernan stated that the City should be comparing itself to the surrounding beachfront communities, look at what they're doing, how much they're spending and when they conduct their maintenance, and how many facilities they provide. General Services Director Niederhaus stated that a survey was done and the restrooms in the surrounding cities were found to be in better condition in regard to cleanliness. He added, however, that due to recent improvements, the City's facilities themselves are as good as, or superior, to the surrounding communities. Council Member Adams stated that staff is doing a good job given the budget and direction provided. He stated that few complaints are probably received because the public has a relatively low expectation of the condition of public restrooms, but he'd rather do a better job. City Manager Bludau stated that staff will conduct additional surveys and return to the City Council with a report and a recommendation. Per Council Member Heffernan's question, City Attorney Burnham confirmed that tidelands money can be used for providing beach restroom facilities, cleaning of the restrooms and maintenance of the beach. Mayor Ridgeway noted that $6 million is currently received from tidelands, and approximately $12 million is spent on tidelands issues. PUBLIC COMMENTS — None. ADJOURNMENT — 5:35 p.m. The agenda for the Study Session was posted on September 4, 2002, at 3:10 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 366 INDEX CITY OF NEWPORT BEACH City Council Minutes ����� Regular Meeting September 10, 2002 - 7:00 p.m. INDEX - 4:00 p.m. CLOSED SESSION - None. ................... A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Absent: Glover, Proctor (excused) C. CLOSED SESSION REPORT - None. D. PLEDGE OF ALLEGIANCE - Council Member Adams. E. INVOCATION - Chief Chaplain George B. Vogel, VA Medical Center of Long Beach. F. PRESENTATIONS Presentation of Donation of $150,000 from the Friends of the Library. Ed Reuscher, Treasurer of the Friends of the Library; Adele Mann, worker and former President of Friends of the Library; Patty Lillegraven, worker and former President of Friends of the Library; Darlene Gaetano, Assistant City Librarian; and Theresa Chase, Board of Library Trustee presented Council with a check from the Newport Beach Public Library for $150,000. Mr. Reuscher stated that the check is the donation for fiscal year 2001 -2002 and that this raises their donations since 1992 to $912,000. Mayor Ridgeway thanked them for their donation and for all the hard work that the Friends of the Library do. He announced that people can donate their old books to the library for resale. Mayor Pro Tom Bromberg stated that he took a tour of the library when he was lust on Council and noted that the donation is better than what some small businesses bring in. Ms. Chase stated that, on behalf of the Board of Library Trustees, they are grateful for everything that the Friends do and reported that they were formed by a small group of volunteers in 1957 and now they have over 950 members. She also thanked the Friends for their $25,000 contribution for the new Mariner's Branch Library. Presentation by Edison for Energy Savings Project. Continued to the September 24, 2002, Council meeting. Proclamation declaring September 11, 2002, as a "Day of Remembrance". Mayor Ridgeway read the proclamation. G. NOTICE TO THE PUBLIC Volume 55 - Page 367 City of Newport Beach City Council Minutes September 10, 2002 H. INDEX MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): • Mayor Pro Tem Bromberg requested an update on two park issues, specifically regarding Upper Bayview. • Mayor Pro Tem Bromberg reported that a driver unintentionally crashed into one of the ferry docks on Balboa Island during Labor Day and injured 13 people. He commended the Police and Fire Departments for working in unison and for their high level of professionalism. • Council Member Heffernan suggested that, when Council narrows commission and committee appointments to two people, the nominees appear before Council for one minute to introduce themselves. • Mayor Ridgeway announced that the City will be having two September 11 tributes tomorrow. He indicated that the first tribute will be held at 8:30 a.m. in which the tall ships will be laying three wreaths off of Big Corona Beach. He stated that the City is also having a Patriot Day Tribute at noon in front of the City Hall flag pole. I. CONSENT CALENDAR City Clerk Harkless announced that an issue arose subsequent to the posting of the agenda (Item No. S23) that involved the resignation of Arts Commissioner Pam Nestande. She noted that the City is currently in the process of accepting applications for another vacancy on the Commission. She recommended that Council take action that the issue arose subsequent to the posting of the agenda and to include it on the Consent Calendar. She noted that this would take a majority vote since not all members of Council are present tonight. Motion by Council Member Adams to add Item No. S23 to the Consent Calendar. The motion carried by the following roll call vote: Ayes: Heffernan, ONeil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF AUGUST 27, 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. Volume 55 - Page 368 City of Newport Beach City Council Minutes September 10, 2002 INDEX 3. Removed at the request of an audience member. CONTRACTS AND AGREEMENTS 4. CONSTRUCTION SUPPORT SERVICES WITH PRO SOURCE, INC. C -3515 Volume 55 - Page 369 - APPROVAL OF AMENDMENT NO. 2 TO THE PROFESSIONAL Construction SERVICES AGREEMENT. Approve Amendment No. 2 to the Support Professional Services Agreement for construction services with Pro Source, Services Inc. in the amount of $27,000. (38) 5. CORONA DEL MAR STATE BEACH IMPROVEMENTS (C -3461) — C -3461 PROFESSIONAL SERVICES AGREEMENT FOR ARCHITECTURAL Corona del Mar SERVICES. Approve a Professional Services Agreement with Robbins State Beach Jorgensen Christopher Architects (RJCA) in the amount of $111,670 and Improvements authorize the Mayor and the City Clerk to execute the Agreement. (38) 6. OCEAN PIERS REHABILITATION (C -3312) — COMPLETION AND C -3312 ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Ocean Piers Notice of Completion; 3) authorize the City Clerk to release the Labor and Rehabilitation Materials bond 35 days after the Notice of Completion has been recorded in (38) accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond 1 year after Council acceptance. 7. Removed at the request of an audience member. 8. AWARD OF LANDSCAPE MAINTENANCE CONTRACT C -3569 AGREEMENT FOR NEWPORT COAST PUBLIC AREAS. Approve the Landscape agreement with Park Landscape Maintenance, Inc. to provide landscape Maintenance for maintenance of City medians and roadside areas in the Newport Coast Newport Coast area effective October 1, 2002 at an annual cost of $78,237. (38) MISCELLANEOUS ACTIONS 9. REQUEST FOR BUDGET AMENDMENT. Approve a City Council BA -006 Budget Amendment (BA -006) appropriating $15,861.40 from Overtime and unappropriated General Fund reserves to provide for overtime and night Night Differential differential expenses incurred by Library and Recreation employees. Expenses (40/66) 10. BUDGET AMENDMENT TO EXPAND THE DEPARTMENTS BA -008 EFFORTS IN INSPECTING FUEL MODIFICATION AREAS IN Fuel Modification NEWPORT COAST. Authorize a budget amendment (BA -008) Inspections in transferring $40,000 from General Fund revenues to account 01- 2330.8080, Newport Coast to fund the expanded efforts of the Fire Department to survey fuel (40/41) modification areas in Newport Coast. 11. WATER QUALITY EDUCATION. 1) Authorize City staff, under the BA -009 direction of the Coastal/Bay Water Quality Committee, to develop and Water Quality implement three water quality education efforts as follows: a) a public Education awareness campaign directing people to a web site; b) a water quality (40/51) video; and c) the 3,a year of the partnership for Clean Water (51h grade education program); and 2) approve a budget amendment (BA -009) in the amount of $25,000 to fund the three efforts, as needed. Volume 55 - Page 369 City of Newport Beach City Council Minutes September 10, 2002 12. BUDGET AMENDMENT TO INCREASE REVENUE ESTIMATES AND EXPENDITURE APPROPRIATIONS DUE TO THE RECEIPT OF A GIFT FROM THE NEWPORT BEACH FRIENDS OF THE LIBRARY. Approve BA -010 in the amount of $150,000. 13. REVISIONS TO SECTION H OF THE CITY OF NEWPORT COUNCIL POLICY MANUAL. Approve revisions to Policies H -1 (Harbor Permit Policy) and H -4 (Dory Fishermen's Fleet). 14. Removed at the request of staff. S23. UNSCHEDULED VACANCY ON THE CITY ARTS COMMISSION. 1) Accept the resignation of Pamela Nestande from the City Arts Commission effective September 10, 2002 (term expires June 30, 2005) and declare the position vacant; and 2) direct the City Clerk to include the filling of this vacancy with the recruitment process currently in progress to fill the seat recently vacated by Jeff Gould. Motion by Mayor Pro Tern Brombere to approve the Consent Calendar, except for those items removed (3, 7, and 14). The motion carried by the following roll call vote: Ayes: Heffernan, ONeil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor J. ITEMS REMOVED FROM THE CONSENT CALENDAR 3. AMENDMENTS TO TITLE 17 OF THE NEWPORT BEACH MUNICIPAL CODE DEALING WITH HARBOR REGULATIONS, ADMINISTRATION AND CONSTRUCTION IN NEWPORT HARBOR. Jim Hildreth noted that there are many changes being proposed to Title 17 and believed that the City needs to uphold the code first before it changes anything. He referenced Section 17.08.025 and stated that he has been asking for documents but they have not been released to him and that failure to maintain these files and records is a misdemeanor. He stated that the City Manager received a 20% salary increase and assumed that it is in anticipation for him to pay the fines. He reviewed the history of the Harbor Resources Department. He indicated that the staff report proposes to have the City Manager's office relinquish its duties and give it to the Harbor Resources Department. He believed that this needs to be rechecked and that the department be audited before anything changes. He submitted his correspondence which is on file in the City Clerk's office. He added that it is a requirement under State law that these documents that have been maintained by the City be released and noted that this is also a misdemeanor. He stated that he would like to have staff stop violating the law and insisted that they do what is required by law. Mr. Hildreth stated that the Marine Director is also in charge of all permit issues, which does not state anything about moorings. He indicated that the City has never had the location for J.M. Hildreth classified as a Volume 55 - Page 370 INDEX BA -010 Newport Beach Friends of the Library Gift (40150) Council Policies H -1 and H -4 (51/69) City Arts Commission (24) Ord 2002 -18 Regulations, Administration, and Construction in Newport Harbor (51) City of Newport Beach City Council Minutes September 10, 2002 INDEX mooring, believing that it is a pier permit location, and that Harbor Permit 801001 was issued as a pier permit. He noted that Harbor Permit 801001 was changed to RP80100011 but is still a pier permit. Motion by Mayor Pro Tern Brombere to introduce Ordinance No. 2002 -18 amending Title 17 of the NBMC and pass to second reading on September 24, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor JAMBOREE ROAD RECLASSIFICATION STUDY — C -3568 PROFESSIONAL SERVICES AGREEMENT WITH AUSTIN -FOUST BA -011 ASSOCIATES. Jamboree Road Reclassification Charles Griffin, 732 Bison Avenue, stated that he is opposed to further Study development of Jamboree Road. He indicated that the homes in Eastbluff (38/40) back up very close to Jamboree Road, as does One Ford Road. Mayor Ridgeway stated that the study supports his position. Mr. Griffin encouraged Council to carry -out the study. City Attorney Burnham reported that Recital B of the agreement should read, "City is considering the reclassification of Jamboree Road..." so the City does not commit itself too early in the process. Council Member Adams recommended that the scope of services be amended to include an examination of the removal of the proposed direct - connector from northbound Jamboree Road to the northbound 73 Freeway, and look at the potential elimination of the proposed grade separation at Jamboree Road and MacArthur Boulevard. Motion by Council Member Adams to 1) approve a Professional Services Agreement with Austin -Foust Associates (AFA) in the amount of $32,500, with changes to the scope of services and change to the recitals, and authorize the Mayor and the City Clerk to execute the agreement; and 2) approve a budget amendment (BA -011) appropriating $2,500 to Account No. 7014- C5200701 from the unappropriated General Fund balance. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor 14. WORKERS COMPENSATION (WC) EXCESS INSURANCE Workers RENEWAL. Compensation Excess Insurance City Manager Bludau reported that information was received from Marsh (47) and provided to Council regarding quotes that were received yesterday. Volume 55 - Page 371 City of Newport Beach City Council Minutes September 10, 2002 INDEX Mayor Ridgeway stated that read it. tonight, but has not Risk Manager Farley reported that the staff report provides background information on the claims history, history of the marketplace, and what they believe was their best recommendation. She pointed out that the frequency of claims and severity of claims guide excess renewal. She stated that the City has more of an issue with frequency than severity and noted that, since 1993, the City has had about five claims that exceeded $500,000. She reported that the current coverage has a self - insured retention (SIR) of $350,000 for miscellaneous employees; the quotes in the report show a minimum of $500,000; and show a breakout of $750,000 for Police and Fire. She utilized an overhead to compare the carriers' quotes. She noted that Marsh provided additional quotes yesterday and that their quotes bring down the SIR from $750,000 for Police and Fire to $700,000, and provides an additional quote of $400,000 for miscellaneous employees. She reported that the significance of the SIR limit means that the City has to fund the amount before excess insurance will pay. She stated that the City has 120 to 126 Police and Fire claims, it receives about 165 workers compensation claims a year, and has an open claim history of 265 claims. Ms. Farley stated that the coverage limit is between $25 million and $50 million for statutory requirements that the City is obligated by law to pay. She noted that the expiring policy has statutory limits, but this was not provided to the City in any of the quotes received this year. She reported that the difference between the Marsh and CalSurance quotes is the higher limit of $50 million. She stated that, in talking with the City's actuary and looking at the loss history and lost projections, he indicated that the City is going to need to self insure the difference. Ms. Farley highlighted the differences between the premium quotes and the additional options that Marsh provided yesterday. Mayor Ridgeway noted that, in the Marsh quotes, the minimum SIR is $700,000 for Police and Fire, but CalSurance proposes $500,000 for Police and Fire. Mr. Bludau stated that the quotes are a trade -off and that Council needs to consider where the risks are for the City. He asked if it is better to have $25 million for the workers' compensation limit. He indicated that the trade -off for that is having a SIR for Police and Fire of $500,000. He also asked if it is better to have a limit of $50 million with a Police and Fire SIR of $750,000. Noting that staff will not be proven right or wrong until the end of the year, he stated that staff believes that the City has a greater risk potential for Police and Fire to exceed $500,000 than to go to the limit above $25 million. In response to Council Member Adams' questions, Ms. Farley clarified that the SIR is per occurrence. She reiterated that, since 1993, the City has received one claim that is close to $425,000; two claims that have reserves of $800,000; and one claim that was $600,000. She stated that, of those claims, two came from Police and one from Fire. Mr. Bludau indicated that the City has not had a single event that would exceed the $25 million limit. In response to Mayor Ridgeway's question regarding the average size of a claim, Ms. Farley stated that, if the claim was an indemnity claim, it could Volume 55 - Page 372 City of Newport Beach City Council Minutes September 10, 2002 INDEX run about $125,000 to $170,000, depending on the injury. Noting that the City only had 126 claims, Mayor Ridgeway indicated that the City is looking at $126 million of liability. Ms. Farley clarified that the average claim for disability benefits could be around that range; however, the medical only claims could just run the City $1,000 to $1,500. Council Member O'Neil stated that it seems to him that this is a matter that involves a lot of professional analysis and input. He indicated that he does not feel very qualified in evaluating what the coverage should be for the City under these circumstances. Motion by Council Member O'Neil to approve the renewal of the excess workers compensation insurance coverage with a self- insured retention (SIR) of $500,000 with the options in coverage limits and premiums outlined in the staff report for FY 2002 -03. Mr. Bludau stated that, since there was additional options provided after the agenda went out, he wanted to bring it to Council's attention to have the opportunity for discussion. Mayor Pro Tern Bromberg asked if it makes sense for the City to consider being completely permissibly self - insured considering the high retention and considering that workers' compensation payouts are by schedule and set by statutes. Mr. Bludau stated that the prospects of doing this would scare him. He noted that the workers' compensation SIR for this year was $350,000, and that the market has really changed in part by September 11 and all the losses companies received. He indicated that it is his understanding that most cities do not have $25 million for its workers' compensation limit. Regarding becoming self - insured, he stated that it is a risk and, as a city manager, he would feel more comfortable having a lid on the total expenditures per person. Council Member Heffernan asked what was paid out in the most current fiscal year for SIR. Ms. Farley reported that the City budgeted $1.7 million, projected paying $1.6 million, and the current budget is $1.8 million for this fiscal year. She reiterated that the City receives an average of 160 claims/year and has an open claim history of 265 claims. She reported that last year's premium was $66,000. She confirmed that this was competitively bid by three brokers (Marsh, CalSurance, and Driver Alliance — Attachment A). Mayor Ridgeway noted that all insurance across the board has gone up 100 %. Mr. Bludau stated that he is not sure if they have seen the Police and Fire breakdowns before. Ms. Farley confirmed that the distinction in the SIR limits have not been seen before this year. Jim Hildreth, The Grand Canal, stated that his brother broke his back when he fell off a ladder and it took almost seven years to get a settlement from workers' compensation. He believed that the City should care about its employees more. He stated that the City's liability insurance is together with Huntington Beach and Costa Mesa and asked if workers' compensation can also work this way. Council Member O'Neil emphasized that they care a great deal about the employees, respect them, and provide compensation and benefits. Volume 55 - Page 373 City of Newport Beach City Council Minutes September 10, 2002 INDEX Jean Macino, 2465 Marino Drive, stated that she is a resident and the Managing Director of Marsh which is located in the City. Referencing the ferry accident on Labor Day, she noted that the $25 million limit would not cover the cost of injuries if the elderly lady had run into 13 Police, Fire, or other City employees. She cautioned Council that the City is moving from an insurance policy limit which gives the City unlimited coverage to having a cap on a $25 million limit. She believed that the City is putting too much attention on the SIR. She stated that you buy insurance for catastrophic exposures. She indicated that, if City Hall were to be bombed, have a terrorist threat, or have a massive fire, the $25 million would not be able to take care of the employees. She requested that the $50 million be considered and believed that this amount is not enough. She stated that the City could fund the extra money and with the proper claims advocacy, which they provide, the City could contain the claims. She expressed the opinion that the best option was not even discussed tonight (Option 5). Peter Junker, 23412 Pacific Park Drive, Vice President of the Newport Beach Marsh Office, stated that he has over 30 years experience in insurance and risk management; graduated from the College of Insurance in New York with a degree in actuarial science; and worked at a risk management consulting firm. He indicated that the question of how much is enough always comes up and reported that they never tell anyone to only buy $25 million in workers' compensation limit, but to buy as much protection as possible. He stated that the general rule in insurance is to fund for the catastrophe and you self insure the smaller, more predictable losses to try to manage them. He added that he does not know of an actuary who would recommend that you not buy as much workers' compensation protection as possible. He noted that the City only received three claims over $500,000 in 1995 and none since. However, since 1995, the City received four claims between $345,000 and $367,000 which are still open and could exceed $400,000. He stated that two of the claims are from Police and Fire, and the other two are from miscellaneous employees. He believed that it is equally likely that any employee could have a large loss. He noted that Option 5 has an SIR of $400,000, which is lower than the recommended $500,000. He stated that it is conceivable that the extra money that might be paid for Police and Fire might be washed out by the extra money paid for miscellaneous employees. He asked if the City wants $50 million in limits for an additional $20,000 premium, whereas the recommended option costs $193,000 for only a $25 million limit for a $500,000 retention across the board. Mayor Pro Tern Bromberg took issue with Ms. Macino's extreme examples and tactics. He believed she was not speaking as a citizen of the City but as someone who makes a commission from the premium. He also took issue that the premiums have tripled over the year and that it does not make it right even if all the other brokers are doing it. Council Member Adams asked if staff has had adequate time to look at the new options, noting that Option 3's premium is less than CalSurance's. Additionally, it gives the City a $50 million limit versus $25 million, the premium is less, and the difference between the $500,000 and $700,000 is not going to make a difference based on the City's history. Mr. Bludau stated that the difference in the premiums really does not matter that much. Mayor Ridgeway noted that the City has to take the lowest bid on Volume 55 - Page 374 City of Newport Beach City Council Minutes September 10, 2002 INDEX Public Works projects and pointed out that there is a dollar difference between the premiums. Mr. Bludau indicated that Options 2 and 3 are the same with the exception of the workers' compensation limit. He stated that the insurance industry only sees a risk that is priced at $10,000, which means that you can double your insurance limit for only $10,000. He emphasized that none of the other insurance companies would come in with a $500,000 SIR for Police and Fire because the risk was too great. Council Member Adams agreed that the City will be paying almost all of the claims itself but, for relatively a little more money, the City could double the coverage to protect itself from a catastrophe. Mr. Bludau stated that, if the City has either a $700,000 or $750,000 SIR for Police and Fire, it will cost the City an additional $250,000 in order to save the difference in premium costs, since CalSurance's SIR is $500,000 for Police and Fire. He stated that this is the trade off in terms of where the risk is. Council Member Heffernan stated that he agrees with Ms. Macino, but that it is the upper limit that he is concerned about rather than the retention amount. He believed that the high priced option gets the City a better carrier with an XV rating, rather than an X rating. He stated that he would take the risk at the retention amount to have the higher coverage limits at the top end. He added that, as a public entity and to preserve the reserves, this is where the City could potentially get hit. He indicated that the claims show that the City might have hits in the SIR, but believed that the City is trying to buy catastrophic coverage rather than primary coverage. He stated that he assumes staff surveyed the market and all the rates have tripled. He indicated that it is a question of whether the City will save money on the retention level or try to get the big umbrella at the aggregate limit level. In response to Mayor Ridgeway's question, Ms. Macino confirmed that Options 1 to 5 are from Hartford. She added that, if a Police Officer's injuries cost the City more than $500,000, an extra $200,000 would not bankrupt the City. She indicated that the City could fund for it now and maybe it will not need to use it. However, if there was a catastrophe at City Hall, the City could exceed the $25 million and possibly look at a $40 million to $50 million claim, which would devastate the City. Mark Zahoryin, CalSurance, stated that he is the current broker for the City, has been the City's broker for 15 years, with CalSurance for over 19' /a years, and in the industry for about 25 years. He clarified that CalSurance's rating is A + +XV. Regarding the employer's liability limit, he pointed out that the limit is $1 million per occurrence; however, under the Hartford option, it is $1 million per occurrence with an aggregate of $1 million. He noted that most liability carriers require $1 million per accident. He stated that he is not an actuary, but when they first came to the City and proposed how they were going to market this year, budgets were discussed and statutory limits were not available. He noted that they indicated that they were going to try to come in with the highest limits that they could, adding that they felt obtaining $25 million was going to be the maximum level. He stated that he did not have major concerns indicated to him at that time. He pointed out that they came in with their best quote, but Hartford had the option to come in with an additional quote after they knew CalSurance's numbers. He noted that they have been around for 40 years, but Hartford has been in the reinsurance business for Volume 55 - Page 375 City of Newport Beach City Council Minutes September 10, 2002 INDEX excess workers' compensation in California for only four years. He indicated that he could go to the carrier and ask them to adjust their numbers if $15,000 will make a difference to the City. In response to Council questions, Mr. Zahoryin stated that he was asked by staff after they received the quote to increase the limit from $25 million to $50 million. He indicated that he told staff that Employers Reinsurance Corporation (ERC) cannot offer limits greater than $25 million because of reinsurance. He stated that he is comfortable with the limit, otherwise he would not have recommended it. Council Member Adams asked, based on the City's experience, if the $1 million aggregate is problematic. Mr. Bludau stated that it is not problematic, and added that it is also not problematic that $25 million or $50 million is enough. Rett Smart stated that he works with CalSurance and helps them to provide the quotes from ERC. He noted that the City has had Police and Fire losses in excess of $500,000. He reported that, because of the exclusive remedy laws in California and increases in benefits, a fireman who may have worked for the City ten years ago who developed emphysema due to a smoking habit could come back to the City believing they could be compensated under the City's policy. He indicated that all the companies are dealing with these types of issues. He stated that one of the reasons Hartford is set on high limits for Police and Fire is because they understand, if three firefighters get severe burns, a month in a burn unit can put them above $500,000. He noted that the City's third party claims adjuster ( Hazelrigg), who the City has just entered into a two year contract with, is not on Hartford's list of approved third party claims administrators. He stated that Hazelrigg would have to go through an audit process to get onto their approved list before Hartford would consider them bound. He indicated that he understands the City's concerns over the losses between $350,000 and $1 million. He believed that this is where Council's concern should be versus having a $50 million limit. Alan Troop, Executive Vice President of CalSurance, stated that he has been in the insurance business for 40 years and headed up one of the largest risk management actual consulting firms. He added that he is a resident of the City but is not speaking as a citizen, but as a broker. He stated that their job is to provide the City with the best advice and best program consistent with the facts available to them. He agreed that he could engage in speculation about what major catastrophe could befall the City, but the real issue is, given the history of the City, that the program is consistent with the City's goals. He stated that they could have looked at other options from other companies, but he believes they came to the City with the best option for the relationship that has been established since 1995. In response to Mayor Pro Tern Bromberg's question, Mr. Bludau stated that it is staffs recommendation that the City stay with CalSurance. The motion carried by the following roll call vote: Volume 55 - Page 376 City of Newport Beach City Council Minutes September 10, 2002 INDEX Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor K. PUBLIC COMMENTS John Lightburn, Committee to Abolish Helicopter Noise, P.O. Box 8008, stated that he would rather say "abate" than "abolish '. He indicated that he previously requested financial information and thanked the City for giving it to them. He stated that, since his last visit, he looked at the Municipal Code and General Plan. He noted that the noise element of the General Plan discusses sleep interference as a major noise concern; and Chapters 10.26 and 10.28 of the Municipal Code discusses noise control and abatement. He believed that helicopter flyovers are being conducted in a manner that creates a nuisance and that they want to seek a process in which the committee can work with the City to resolve this. Charles Griffin, 732 Bison Avenue, reported that the State Assembly and Senate have passed AB 2333 which calls for environmental justice in the region and distributing the adverse impacts from aircrafts throughout the region, taking into account minorities and low income people. He noted that no one would be impacted by aircraft operations if there was an airport at E1 Toro. He encouraged everyone to support AB 2333 and requested that the Governor sign the bill. He added that Measure B, that was put on the ballot by the Board of Supervisors, requests that the Navy not transfer the property until it is cleaned up. He indicated that he wrote the proponents' argument as a non - binding addendum to the Measure which also states that the Navy should immediately operate the airport in a lease agreement with Los Angeles World Airways to help pay for the clean up. He provided Council with a copy of the November ballot statement. Stephanie Barger, 503% Larkspur, Executive Director of the Earth Resource Foundation, announced that Inner Coastal Clean Up Day is September 21 and provided Council with packets. She reported that Inner Coastal Clean Up Day was set up six years ago by Trails For All and is a collaboration with Coastal Clean Up Day. She indicated that it is set up so trash can be picked up before it reaches the beach. She encouraged the public and City to join them either at Brookhurst or at Victoria Pond at the end of 19th Street. She noted that they provide gloves, trash bags, t•shirts, and water. She reported that their website is www.earthresource.org and registration starts at 8:30 a.m. Philip Bettencourt, 110 Newport Center Drive, stated that he is speaking on behalf of the Building Industry Association (BIA) and reported that they have raised more than $9.8 million in relief funds that were distributed, not only to families in New York, but also to victims in Washington D.C. and the volunteer fire departments in Somerset County, Pennsylvania. He indicated that this is in addition to their continued support for the Police, Fire, and Marine Safety employees, and the City's efforts in its defense of the homeland. Volume 55 - Page 377 City of Newport Beach City Council Minutes September 10, 2002 INDEX Jan Vandersloot, Balboa Arbor Society, stated that it is fiction about the extent the City has faced in liability due to damages caused by the roots from the Main Street ficus trees, pointing out that one of the exhibits the City submitted to the court stated that there had been three claims in the past five years that total $517.75. He added that one of their members surveyed the merchants on Main Street and concluded that only 3 of 13 merchants had plumbing problems. He emphasized that the amount of damage that the ficus trees have caused have not been substantial and could be dealt with. He urged the City to consider sitting down again with the Balboa Arbor Society because there could be a settlement reached. Lynn Miller stated that she is a resident of the Balboa Peninsula and a member of the Balboa Arbor Society. She read a letter she sent to the Daily Pilot which generally states that the history of the Balboa Peninsula, buildings, and sewer lines date back to the early 1900s. She indicated that, according to the Utilities Department, the replacement in the 1980s and 1990s of main and lateral sewer lines revealed that the original pipes were not cracked or broken by the ficus trees that are designated special trees. She added that the original pipes were used as tunnels to run PVC pipes, but the cement disintegrated, allowing raw sewage to flow into the surrounding ground. She indicated that the lifespan of cement in this type of environment is 20 years, which means that the sewer lines have gone over the replacement deadline by 50 years. She stated that it was also discovered that the fiscus tree roots, some as thin as hair to about 1 -inch thick, had been attracted to the spills and were able to enter the pipes at the open joints. She reported that, since the areas were replaced by the new PVC sewer lines, there had not been any problems. She noted that the private and City sewer lines were installed at the same time, which means that in the areas where the cement has not been replaced, the cement has also disintegrated. She stated that these areas could be tested and leaks can be detected. She added that another sign of leakage is that sea water is present. She reported that the only businesses on Main Street complaining of sewer problems were several restaurants and a hotel which has a restaurant. She believed that grease has entered the restaurants' sewer lines and that paper towels, disposable diapers, and sanitary napkins entered the sewer lines in the public restrooms. She indicated that, by law, restaurants are shut down if they leak sewage or if it is backing up into the buildings. She believed that the solution is to replace all the old sewer lines with new PVC lines. She stated that root pruning needs to be initiated with root barriers installed, the sewer pipes should be wrapped with a root repelling material, and chemicals should be emptied into the drains to kill and repel roots. Jim Hildreth, The Grand Canal, stated that he has asked for documents and submitted letters dated February 1, 2001, March 13, 2001, and July 26, 2001, that are on file in the City Clerk's office. He indicated that the permit files were out of the office being microfilmed and, once the City receives them back, they were going to be sent to him. Further, Harbor Resources Director Melum had them in his office prior to them being taken out of his office, stating that a P.O. Box was missed and should have been classified as a service address for 1411 Bayfront Avenue North. He noted that Assistant City Manager Kiffs letter indicated that he would forward documentation when they receive it back from the service if it is part of the microfilming request. Further, another letter states that all the records he Volume 55 - Page 378 City of Newport Beach City Council Minutes September 10, 2002 INDEX has requested were in their possession. He stated that the records once existed but suddenly they are not in the City's possession. He asked that his letter regarding Residential Pier (RP) 80100011 also be kept on record. Mr. Hildreth stated that the City acquired the structure location at the southwest end of the Grand Canal under the Public Domain Act and Public Works Director Badum determined that the structure was not a legitimate structure. He believed that this means that the City has acknowledged that they no longer wish to have public access at that location. He stated that the City needs to follow its guidelines, noting that Council is changing over the requirements. He indicated that, if they are not willing to do their job, he is sure they can find someone else who is willing to do their job. He noted that the City is going to hand over the requirements to look over mooring locations to the Harbor Commission which is self appointed. City Manager Bludau reported that Mr. Hildreth was sent a letter over a year ago stating that he had already obtained copies of all the records that the City had, with the exception that there were some records being microfilmed. After the City received the results of the microfilming, he stated that Mr. Hildreth was sent a letter stating that there were no records pertaining to his issue that were being microfilmed. He noted that Mr. Hildreth can come before Council for the next 60 years requesting records, but the answer will be the same for the next 60 years that he has been given all of the City records in our possession. Council Member Heffernan requested that Mr. Hildreth provide a simple sentence of what his objective is before he starts speaking. Linda Grant, President of the Balboa Arbor Society, stated that they entered into an agreement to meet with the City to try to find a solution regarding the ficus trees. She indicated that they did not breach their agreement and they did not speak to the press; however, Mayor Ridgeway broke the agreement when he spoke to the press. She stated that they love their trees and still want to find a way to work with the City to keep them and still beautify the City. She indicated that they found many solutions for the trees and hope that the City will look at them. She pointed out that everyone agreed that the arborists would decide and noted that three arborists determined that the trees could be saved. Mayor Ridgeway reported that he spent an entire day in arbitration and staff spent two additional days in arbitration. He indicated that numerous solutions were brought to the table by the City, but they were all rejected. Gabe Green, 310 Fernando, sang a ficus tree song to the tune of "Cops I Did It Again ". He also sang a song that he wrote, called "United We Stand", which he dedicated to the firefighters and policemen that served heroically on September 11. Bud Grant, 310 Fernando, stated that Mr. Green's song was also from the Balboa Arbor Society. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Adams noted that the Ad Hoc General Plan Update Committee did not meet this week. Volume 55 - Page 379 City of Newport Beach City Council Minutes September 10, 2002 • Mayor Pro Tem Bromberg reported that the Aviation Committee will meet on September 23 at 8:00 p.m. at the Central Library Friends Room. • Council Member Heffernan announced that the Telecommunications Committee will meet September 13 in the Chambers at 10:00 a.m. to receive industry input relative to the telecommunications ordinance. • Council Member Heffernan reported that the Newport Coast Advisory Committee has been meeting and there has been an effort by the Committee and the City to define the details of the annexation. • Mayor Ridgeway stated that he chairs the Coastal/Bay Water Quality Citizens Advisory Committee and that they will meet at 3:00 p.m. on September 12 at the Harbor Patrol Station. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 15. PLANNING COMMISSION AGENDA FOR SEPTEMBER 5, 2002. Planning Director Temple reported that Items 3 and 4 were continued to the next meeting. She stated that Item 1 was for a use permit for a retail wine store with wine tasting. She indicated that the item was approved. Ms. Temple reported that there was lengthy discussion about the temple proposed by the Church of Jesus Christ of Latter Day Saints (Item 2). She stated that the purpose of the meeting was to receive public testimony and added that, due to additional noticing required by the California Environmental Quality Act (CEQA) for the Environmental Impact Report (EIR), the Planning Commission cannot take final action on the certification until October 3. She reported that the Commission continued the item to October 3. Ms. Temple indicated that the tone of the meeting was very respectful and noted that, mid- afternoon on Wednesday, it came to their attention that they may have a crowd beyond the capacity of the Chambers. She stated that the Planning, Fire, General Services, City Clerk, and City Manager's offices created accommodations to keep fire access in the Chambers and ensure that the individuals outside the Chambers could hear the proceedings. She stated that all the departments immediately pitched in without hesitation to get the job done in a short period of time and showed the City well in the eyes of the people who attended the meeting. Ms. Temple reported that the significant issues by the opponents of the project were the height of the steeple and the lighting plan, particularly the lighting of the steeple. Additionally, adequacy of parking, traffic, and other issues were discussed. She noted that the meeting started at 6:30 p.m. and ended at midnight. Mayor Pro Tem Bromberg stated that he attended the meeting, along with Council Member Heffernan, because the issue falls in both of their districts. He commended Planning Chairman Kiser who ran the meeting which had about 250 people in attendance. He indicated that, following the meeting, he received telephone calls from people on both sides of the issue. Volume 55 - Page 380 INDEX Planning (68) City of Newport Beach City Council Minutes September 10, 2002 INDEX He encouraged everyone to participate and reiterated that the next meeting on this issue will be held October 3. In response to Council Member Heffernan's questions, Ms. Temple confirmed that staff prepared a detailed report of the hearing, but has not prepared resolutions, findings, or conditions for approval. She reported that staff feels that a shorter steeple could meet the objectives of the applicant. She reported that they suggested that the steeple be 100' tall on the basis that the temple was a more important ceremonial building than the Stake Center and should be somewhat higher. She added that, combined with the visibility needs identified by the church, staff came up with 100' versus 123' 9" as proposed by the applicant. She stated that the staff report is available on the City's website under News & Events. Council Member Heffernan stated that Council has been receiving a lot of emails on this and encouraged people to keep emailing their opinions. He noted that some of the emails are coming from outside the City since the temple is supposed to serve a larger area. N. PUBLIC HEARINGS 16. ADOPTION OF THE 2002 NEWPORT BEACH FIRE CODES. Mayor Ridgeway reported that Council received a presentation at the study session by Fire Chief Riley and Fire Marshal Lockard. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member O'Neil to introduce Ordinance No. 2002 -19 to adopt the 2001 California Fire Code (Title 24, Part 9), with amendments, as part of the Newport Beach Municipal Code; and pass to second reading on September 24, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor 17. ADOPTION OF THE 2002 NEWPORT BEACH BUILDING CODES. Mayor Ridgeway reported that Council received a presentation at the study session by Building Director Elbettar. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member O'Neil to introduce Ordinance No. 2002 -20 to adopt the 2001 California Building Code; and pass to second reading on September 24, 2002. The motion carried by the following roll call vote: Volume 55 - Page 381 Ord 2002 -19 2002 Newport Beach Fire Codes (41) Ord 2002 -20 2002 Newport Beach Building Codes (26) City of Newport Beach City Council Minutes September 10, 2002 Ayes: Heffernan, O'N Noes: None Abstain: None Absent: Glover, Proctor Bromberg, Adams, Mayor Ridgeway INDEX 18. TEMPORARY REAL ESTATE SIGNS — A REQUEST TO AMEND Ord 2002.21 ZONING CODE CHAPTER 20.67 — SIGNS, TO ALLOW THE PA2002 -128/ ADDITION OF A SINGLE "RIDER" SIGN AND A SINGLE Code Amendment "BROCHURE BOX" PER PROPERTY IN CONJUNCTION WITH AN 2002 -004/ AUTHORIZED TEMPORARY REAL ESTATE SIGN [CODE Temporary AMENDMENT NO. 2002 -004 (PA2002- 128)]. Real Estate Signs Planning Director Temple stated that the Planning Commission considered (68) this issue a month ago and reported that the motion to approve the amendment failed due to a 3 -3 vote. She indicated that the Commission did not think that the rider sign was a helpful sign for the public and felt that the brochure boxes had the possibility of creating additional litter. She stated that this request originated from a letter by the Newport Beach Association of Realtors to Mayor Ridgeway, and was then referred to the Planning Department for preparation of the code amendments. She displayed a rider sign and brochure box. Mayor Pro Tern Bromberg believed that realtors work very hard and was surprised that the City would think about doing something that limits what they do. He stated that he and his wife like to go to open houses and the first thing they do is grab a brochure. He indicated that the signs are helpful and believed that they do not cause sign or sight pollution. Motion by Mayor Pro Tern Brombere to overrule the denial of the amendment by the Planning Commission; and introduce Ordinance No. 2002 -21 amending Chapter 20.67 related to temporary real estate signs and pass to second reading on September 24, 2002. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. In response to Council Member Adams' questions, Ms. Temple confirmed that the square inches of the box is counted toward the total limit of the sign, and that there is no limitation proposed regarding the text. She indicated that some of the deeper boxes do have text on the sides of the boxes. The motion carried by the following roll call vote: Ayes: O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: Heffernan Abstain: None Absent: Glover, Proctor 19. GENERAL PLAN AMENDMENT NO. 2002 -002, LOCAL COASTAL Ord 2002 -22 PLAN AMENDMENT NO. 2002 -001, AND CODE AMENDMENT NO. Res 2002 -57 2002 -002 (PA2001 -186) — 205 ORANGE STREET — REQUEST TO GPA 2002 -0021 CHANGE THE GENERAL PLAN LAND USE DESIGNATION FROM PA2001 -1861 RETAIL & COMMERCIAL TO TWO- FAMILY RESIDENTIAL, Local Coastal Volume 55 - Page 382 City of Newport Beach City Council Minutes September 10, 2002 INDEX CHANGE THE LOCAL COASTAL PLAN DESIGNATION FROM Amendment 2002 -002/ RETAIL & SERVICE COMMERCIAL TO TWO- FAMILY Code Amendment RESIDENTIAL, AND CHANGE THE ZONING DESIGNATION 2002 -0021 WITHIN THE NEWPORT SHORES SPECIFIC PLAN FROM 205 Orange Street COMMERCIAL TO RESIDENTIAL, IN ORDER TO REPLACE AN (45) EXISTING SINGLE - FAMILY DWELLING WITH A DUPLEX. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. Motion by Mayor Pro Tern Bromberg to adopt Resolution No. 2002.57 approving General Plan Amendment 2002 -002 and Local Coastal Plan Amendment 2002.001; and introduce Ordinance No. 2002.22, which would grant approval to Code Amendment 2002.002. Mayor Ridgeway believed that this is an appropriate action and that this would be upgrading the neighborhood to make it more residential. The motion carried by the following roll call vote: Ayes: Heffernan, ONeil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor 20. CODE AMENDMENT NO. 2002 -001 (PA2002 -098) — 3513 FINLEY Ord 2002 -23 AVENUE — REQUEST TO CHANGE THE FRONT YARD SETBACK PA2002 -095 OF 3513 FINLEY AVENUE FACING THE RIVO ALTO CHANNEL Code Amendment ESTABLISHED ON DISTRICT MAP NO. 3 FROM 2002 -001/ 40 FEET TO 20 FEET. 3513 Finley Avenue (68) Mayor Ridgeway asked why creating a 20 foot setback is not done uniformly in the entire neighborhood, especially since it basically exists anyway. He believed that this is an appropriate action for the Planning Department to initiate for the Finley tract. Mayor Ridgeway opened the public hearing. Hearing no public testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member O'Neil to introduce Ordinance No. 2002.23 and pass to second reading on September 24, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor O. CONTINUED BUSINESS 21. UNSCHEDULED VACANCY ON THE PARKS, BEACHES & Parks, Beaches & RECREATION COMMISSION AND THE PLANNING COMMISSION. Recreation Commission and Volume 55 - Page 383 City of Newport Beach City Council Minutes September 10, 2002 12 City Clerk Harkless read the ballot votes of the Council Members for the Parks, Beaches & Recreation Commission, as follows: William Garrett (Heffernan, O Neil, Bromberg, Adams, Ridgeway) Christopher Sarris (none) City Clerk Harkless announced that William Garrett was appointed to the Parks, Beaches & Recreation Commission for a term ending June 30, 2007. City Clerk Harkless read the ballot votes of the Council Members for the Planning Commission, as follows: Jeff Cole (Ridgeway) Michael Toerge (Heffernan, O'Neil, Bromberg, Adams) City Clerk Harkless announced that Michael Toerge was appointed to the Planning Commission for a term ending June 30, 2005. 22. JULY 4TH WEST NEWPORT BEACH SAFETY PLANNING COMMITTEE. City Manager Bludau reported that there was a presentation at the last study session by the Police Chief regarding enforcement issues over the last July 41h holiday. He stated that Council felt that something needed to be done and the first step would be to develop a committee. He noted that the resolution suggests that the composition of the committee include two Council Members, one being from District 2; the City Attorney's Office; three members of the West Newport Beach Association; two Police Department staff members appointed by the Police Chief; and no more than two other residents appointed by the Mayor who may possess expertise which could be beneficial to the committee. He reported that the committee would be charged with identifying legal parameters; identifying measures that minimize lawless behavior and provide the greatest degree of personal safety to local residents, their properties, and visitors; recommending appropriate measures to Council for immediate implementation and public dissemination well in advance of the next July 41h event; and planning for the coordination of resources to maximize their effectiveness. He added that the committee will be subject to the Brown Act, have its meetings noticed to the public, and be established as an ongoing committee until such time as the need for the committee no longer exists. Mayor Ridgeway reported that, when he was first on the Planning Commission, he was on the West Newport Ad Hoc Committee with Council Member Debay. Marianne Zippi, 420 E. Bay Avenue, expressed concern about the committee coming to conclusions that will force a mob of people to move further down the Peninsula by forcing regulations that apply to only West Newport. She believed that, if regulations are created, they should apply to other areas in the Peninsula. She added that, if this is the case, other Volume 55 - Page 384 INDEX Planning Vacancies (24) Res 2002 -58 July 4th West Newport Safety Planning Committee (24) City of Newport Beach City Council Minutes September 10, 2002 INDEX members of the Peninsula, particularly Central Balboa and The Point, should be part of the committee. In response to Mayor Ridgeway's question, City Attorney Burnham confirmed that generally any ordinance must be applied equally across the City; however, there are ordinances that zone property in a specific manner and there are specific area plans that are adopted by ordinance. He stated that Council has the authority to adopt ordinances, policies, and resolutions that address the specific needs of various areas of the community. Al Silcock, President of the West Newport Beach Association, stated that a committee was formed about three years ago to work on this issue that consisted of their association, citizens in the area, and the Police Department. He believed that the committee has made several improvements to the process and put together a great working arrangement; however, Paul Watkins brought this to Council's attention, because they have gone as far as they can go. He stated that this is a NIMBY (Not In My Back Yard) issue for all of Newport Beach, not just West Newport. In response to Council questions, Mr. Silcock indicated that the committee is well represented as proposed. He suggested that Craig Baddely from Burr White Realty be appointed to the committee. He added that the Council Members involved directly in this part of the City be on the committee. Laura Dietz, 325 Cameo Shores Road, stated that, when flying back to Newport Beach from the Bay Area during the July 4th holiday, she was told by a young man from the Bay Area that he was going to Newport Beach to party. She believed that the committee should be larger and include representation from the Fire Department and the local merchants. She suggested that Council Member Adams talk to other cities at the League meeting on Thursday about the situation. Mayor Ridgeway stated that he chairs the Promote the Revitalization of Our Peninsula (PROP) Committee and believed that he would hear about it by his constituents if there was a fear of the event migrating down the Peninsula. He agreed that the two Council representatives from the Peninsula are the best choice to be on the committee. He added that it would be appropriate to have a person from the Fire Department on the committee, but at this point a motion is in order for what is proposed and noted that the committee makeup can be changed. Motion by Council Member Adams to approve the formation of the "July 4th West Newport Safety Planning Committee ", determine the appropriate makeup of the Committee through the adoption of Resolution No. 2002 -58, and appointed Mayor Ridgeway and Council Member Proctor as the City Council appointments. City Manager Bludau noted that the resolution does not state how the members of the West Newport Beach Association will be appointed, but it was his assumption that they would tell the City who their representatives will be. Volume 55 - Page 385 City of Newport Beach City Council Minutes September 10, 2002 The the following roll call vote: Ayes: Heffernan, ONeil, Bromberg, Adams, Mayor Ridgeway Noes: None Abstain: None Absent: Glover, Proctor Q. MOTION FOR RECONSIDERATION - None. R. ADJOURNMENT - at 9:25 p.m. in memory of September 11. tie, r�e�x +�rrx+tfex *�e�t�x�e�wx�xx+e�x The agenda for the Regular Meeting was posted on September 4, 2002, at 3:10 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 386 INDEX