Loading...
HomeMy WebLinkAbout01 - 10-22-2002November 12, 2002 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes ®���� Study Session October 22, 2002 - 5:30 p.m. INDEX ROLL CALL Present: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In response to Council Member Glover's questions regarding Item No. 4 (Beaches of Southern California Coalition Agreement #001), City Manager Bludau stated that the City is not increasing the agreement in any way. He added that the City also has not entered into any agreements that are looser with regard to advertising private vendors. He confirmed that this is a continuation of the previous agreement. Regarding Item No. 14 (Corona del Mar Crosswalk Update), Council Member Heffernan asked about the status of the relinquishment of Coast Highway to the City. Further, if Coast Highway were relinquished tomorrow, he asked what the City intends to do about the crosswalks. Regarding Item No. 15 (City Communication Summary), Council Member Heffernan requested a comparison of what other cities are doing, especially since the City is updating the cable franchise agreement. Ile noted that the City may be asking for money and effort from the cable companies for these efforts. Mayor Ridgeway indicated that he will be pulling this item to receive a report. City Manager Bludau introduced Marie Knight, the new Recreation and Senior Services Director. He stated that yesterday was her first day with the City. 2. ORAL REPORT REGARDING IMPROVEMENTS TO BILLING AND RELATED SYSTEMS. Administrative Services Director Danner stated that they are proposing significant changes in the way the City does business. He noted that they introduced this to the Finance Committee about a month ago and was encouraged to proceed with what they will be recommending tonight. Ile stated that the goal of the proposed changes is to consolidate as many municipal billings into one municipal services statement and to print and mail the billings as efficiently and cost - effectively as possible. He indicated that, by achieving this goal, the City will accomplish other service enhancements, including electronic presentment and improvements in other printing and mailing services. He reported that, over the past ten years, the City's billing function has been consolidated from various City departments to the Revenue Division of the Administrative Services Department. He stated that the City currently prepares over 325,000 bills annually, with water bills making tip about half the count. He added that the billings are also used to communicate with the Volume 55 - Page 436 Billing (40) City of Newport Beach Study Session Minutes October 22, 2002 INDEX residents, reporting that sometimes a flyer or informational brochure is included in the water billing or municipal service statement. Mr. Danner highlighted the bills that should be consolidated. He reported that the City currently sends out separate bills for each of the billings and noted that, in postage alone, it would be advantageous if the billings were consolidated. He indicated that, if consolidation occurs, the billing for water would be done on a monthly basis rather than bi- monthly and there will be a greater volume. He noted that the current printing equipment is old, already broken down, and expensive to replace; and additional staff would be needed to continue the service. He reported that, in order to continue to print municipal service statements in- house, it would require the replacement of two high speed laser printers, one high volume printer which costs $125,000, and a lesser volume printer which costs $25,000. Mr. Danner stated that they have studied this problem for over a year and believe that the most cost effective solution is to outsource selected aspects of the billing function, primarily the printing and mailing of municipal service statements. He indicated that the advantages include significant cost savings, additional capability to combine /consolidate bills, flexibility, reaching the customers on a monthly basis, electronic presentment of all information, direct links to online bill paying and other City and related services, consolidated printing and mailing of flyers, notices, and other communications with residents, and the speed in which this can be done. He indicated that smart inserting means targeting selected properties for insertion of additional materials with the bills. He stated that this can be done with the enhanced service. Further, electronic presentment means that everything that is mailed can be viewed online. He confirmed that a -bills can only be available if the customer knows their account number. Mr. Danner showed the current equipment that is used to print the bills and the vendor's equipment which can print 135,000 pages /minute. He indicated that they looked at three vendors who are located in the San Diego, Santa Barbara, and Phoenix areas. He reported that the City would transmit a file to the vendor who would send the bills to the Riverside post office. He added that the City would not need to upgrade its computer systems to do this. He stated that the vendors are not a general mail house. He also showed photos of both the City's and vendor's envelope stuffing equipment. Mr. Danner reported that they have analyzed outsourcing versus in-house printing and mailing, interviewed vendors, thoroughly analyzed the costs, and tentatively selected a vendor. He discussed the ten year analysis of the printing outsourcing costs. He noted that, over the ten year period, the present value of outsourcing is about $1.9 million and the in -house value is about $2.9 million, which makes the savings a little over $1 million. He emphasized that the cost includes the cost for paper, printing, postage, etc. He stated that the vendor can do this cheaper than the City because this is all they do. He explained that they can achieve cost savings because of volume and can mail pieces 3¢ cheaper than the City. Further, additional postage costs can be avoided for special mailings since six inserts will be allowed in the billings instead of two, the City will not need to purchase the expensive printer, and additional staff is not needed. Mr. Danner indicated that, to make this successful, the City will need to read the meters and prepare water billings on a monthly basis. He stated that this can be accomplished by continuing to read meters bi- monthly and estimate the Volume 55 - Page 437 City of Newport Beach Study Session Minutes October 22, 2002 INDEX usage for the months when the meters are not read, automate the meter reading function, or keep reading meters as currently done and hire more staff. Ile reported that the automated meter would produce a radio signal that goes to a car, so a person would still need to drive the City to pick up the reading. Mayor Ridgeway noted that there are systems that read the meters by satellite. Mr. Danner indicated that the type of system is dependent on cost. Ile explained that they are recommending monthly billings because, out of all the bills that are sent out, the only one that is sent out bi- monthly is the water bill. He indicated that, if the water bills are not done monthly, the bills cannot be consolidated. Ile added that most cities currently bill on a monthly basis. Mr. Danner stated that an automated system would provide staff with a detailed daily -use history. Further, they are compatible with a variety of meters, the field units will always be ready to transmit, there is a 10 -year warranty on the battery life, no FCC license is required, they are waterproof, they are competitively priced with strong features, they are easy to program and install, and they have tamper detection alerts. Ile showed how the existing meter is read and reported that there are 123 different meter routes in the City. lie indicated that the Utilities Department has four people assigned to meter reading, but they do not do that all the time. lie stated that they also repair and replace meters. He showed a sample of the device that would be placed on the meter to make it automated and the system that reads the meter. He indicated that they are proposing to have half (13.000) of the automated readers installed by the vendor and then have in-house staff install the other half over the next couple of years. Mr. Danner stated that the ten year cost to estimate the water bills is about $500,000, the automated meter reading process costs about $1.4 million, and hiring more staff to read the meters costs about $1.2 million. He emphasized that the costs for estimating and reading the meters with additional staff will go on forever; however, starting in year ten, the automated meter reading process shows a cash savings of over $200,000. Ile stated that, in the long run, the automated system is the cheapest way to go. Further, the City could borrow the money to buy the automated equipment since the interest rate on a 10 -year loan will be about 3 %. Mr. Danner showed a chart of the combined cash flow comparison for the outsourced printing /mailing and the estimated interim amounts ($483,000); and the outsourced printing /mailing and the automated meter reading (- $420,000). He stated that the City could either do nothing; approve the billing change to outsource the printing /mailing and automate the water meters, subject to finalization of costs and other information; or approve the billing change with no change in the water reading schedule and using estimates for the interim bills. He indicated that staff is recommending that Council approve outsourcing printing and mailing, and automate the meter reading function. He stated that this is initially more expensive than estimating but is recommended because estimating is inherently difficult. He indicated that automated reading is more cost effective in the long run, interest rates will probably never be more favorable, there is relatively inexpensive technology available now, and it provides much more detailed usage information. He noted that they would like to come back to Council at the November 12 Council meeting with a staff report and would like to implement this by the start of next year. Council Member Heffernan suggested that the Finance Committee also look at this in detail, but still keep within the recommended timetable. Council Member O'Neil stated that this seems like the right thing to do and would probably support staffs recommendation. Mayor Pro Tern Bromberg, Council Volume 55 - Page 438 City of Newport Beach Study Session Minutes October 22, 2002 INDEX Member Glover, and Council Member Proctor concurred with Council Member Heffernan's suggestion. Mayor Ridgeway indicated that the City has talked about outsourcing a number of functions for a long time and stated that this is a step in the right direction. He also concurred about this going to the Finance Committee and suggested providing 15 and 20 year estimates in order to see the savings. Dolores Otting stated that this item has been brought up before. She requested a breakdown of the 350,000 bills, i.e. how many are for water bills, rental properties, piers, etc., and asked how many contracts the vendors have. She requested information about how the posting will be done if the vendor does the billings. She also asked how much it would cost for a satellite system. She indicated that she is not in favor of monthly billings and believed that most of the constituents are not in favor of it either. She believed that this is a matter of cash flow and getting more cash flow into the City, adding that she does not believe the City needs any more right now since there are not enough people who look at where the money goes. She asked why the vendor can mail bills 3¢ cheaper and stated that, if it is such a good deal, maybe the City should go into the business of doing a bunch of people's bills to make money. She took issue with the presentation since no one could ready anything. She believed that more information is needed. City Manager Bludau stated that no additional money will be coming to the City. Further, the bills will be less since they will occur monthly. PUBLIC COMMENTS -None. ADJOURNMENT - 6:05 p.m. * xaex** irx *irx * *xx * * * * **x:rirxarx *arx* The agenda for the Study Session was posted on October 16, 2002, at 3:15 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 439 DRAFT CITY OF NEWPORT BEACH City Council Minutes Regular Meeting October 22, 2002 - 7:00 p.m. — 5:3U p.m. CLOSED SESSION -6:05 p.m. INDEX A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Absent: None C. CLOSED SESSION REPORT — None. D. PLEDGE OF ALLEGIANCE — Council Member O'Neil. E. INVOCATION — Reverend Dr. John Huffman, Jr., Saint Andrews Presbyterian Church. F. PRESENTATIONS — None. 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- Council Member Heffernan announced that the conflict of interest ordinance that he proposed at the last meeting would be introduced in January 2003. He explained that it would be better to discuss the item after the election is over since it involves a long -term governance issue. • Council Member Heffernan announced that the decision of the Planning Commission regarding the Latter Day Saints (LDS) Temple has been appealed and will be heard by the City Council at its meeting of November 12, 2002. • Council Member Heffernan reported that he will continue to represent District 7 for the balance of his term on the City Council. • Mayor Pro Tom Bromberg stated that he would be meeting with an Volume 55 - Page 440 City of Newport Beach City Council Minutes October 22, 2002 INDEX LllS representative from Salt Lake City on October 28, 2002. He stated that although he can't speak for the City Council, he will make some recommendations to the representative. Mayor Pro Tem Bromberg announced that all of the utility poles with the exception of one have been removed on Little Balboa Island. He stated that the remaining pole is behind 120 The Grand Canal and many people are upset that it is still standing. Mayor Pro Tem Bromberg stated that the pole will come down. Council Member Adams stated that since the last meeting, he has learned that the Cox coverage of the City Council meetings does not include item titles on the screen, whereas the Adelphia coverage does. He requested that Cox be asked to do the same. Mayor Ridgeway announced that a Community Visioning Summit would be taking place on Saturday, November 16, 2002, at the Oasis Senior Center. He stated that two sessions would be offered, one at 10:00 a.m. and one at 1:00 p.m., and that the sessions would provide the opportunity for the community to provide additional input on the general plan update. Mayor Ridgeway announced that the Federal government has rescinded all waivers allowing aircraft to fly within three miles of the ocean. He explained that this will prohibit banner - towing airplanes from flying along the beach fronts. City Manager Bludau introduced the City's new Recreation and Senior Services Director, Marie Knight. Mayor Ridgeway asked the City Council to express their viewpoints on the LDS Temple hearing scheduled for November 12, 2002. He stated that a 6:30 p.m. start time for the meeting might be appropriate, with the LDS Temple item being taken first. Mayor Pro Tem Bromberg agreed, noting the length of the two Planning Commission meetings when the item was discussed. He additionally noted that the appellants may ask for the item to be continued, and there would also be the possibility that a hearing may not be necessary if his meeting with the LDS Temple representative provides a solution. Mayor Ridgeway stated that the LDS Temple would have to agree to an continuance. Mayor Pro Tem Bromberg stated that another option would be to have a special meeting. Council Member Glover asked if it would be possible to have no other items on the November lDh agenda. City Manager Bludau stated that he could do his best to keep the agenda short, but suggested that the other items be taken first and a time for the LDS Temple hearing be set. City Clerk Harkless stated that an assessment district Volume 55 - Page 441 City of Newport Beach City Council Minutes October 22, 2002 INDEX hearing has already been scheduled and noticed for November 12th. Council Member O'Neil suggested that a three-minute time limit per speaker also be considered at the meeting. He requested that a clarification of who the appellants represent be provided. Council Member O'Neil explained that he didn't know if they represented the community associations in which they lived or themselves as individuals. Mayor Pro Tem Bromberg noted that the Planning Commission limited speakers to two minutes. Council Member Proctor agreed with the City Manager's suggestion to begin the meeting early and to take the other agenda items prior to the LDS Temple hearing. Mayor Ridgeway suggested that the City Manager determine how much time is needed for the other items and set the times for the meeting and the hearing as he deems appropriate. Council Member Heffernan stated that he would be meeting with the appellants on October 28th and would find out who they represent, as well as what their concerns are. Additionally, he agreed that a two - minute time limit for the speakers would be appropriate, with additional time provided for the appellant and the applicant. City Attorney Burnham stated that if the meeting on November 12th is to begin sooner, that the current meeting should be adjourned to that meeting date and time. City Manager Bludau stated that 6:30 p.m. should provide enough time to cover the other agenda items with the LDS Temple hearing scheduled to begin at 7:30 p.m. Council Member O'Neil suggested that the appellant and the applicant each be given 15 minutes, with the other speakers given a two or three minute time limit. Council Member Heffernan confirmed that the item would be presented to the City Council de novo. Mayor Ridgeway added that the City Council is not governed by prior testimony. I. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. Item removed from the Consent Calendar by a member of the audience. 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 442 City of Newport Beach City Council Minutes October 22, 2002 ORDINANCE FOR INTRODUCTION 3. Item removed from the Consent Calendar by Council Member INDEX Volume 55 - Page 443 Proctor. CONTRACTS AND AGREEMENTS 4. ENTER INTO THE BEACHES OF SOUTHERN CALIFORNIA C -3575 COALITION AGREEMENT #001. Enter into the Beaches of Beaches of Southern California Coalition Agreement #001, which would allow Southern California the City to entertain a new lifeguard vehicle licensing agreement or Coalition other similar arrangement whereby the City would receive money, Agreement goods or services in exchange for marketing opportunities in the (38) beach environment. 5. JAMBOREE ROAD / MACARTHUR BLVD. COOPERATIVE C -3469 AGREEMENT WITH THE CITY OF IRVINE. Approve the Jamboree Road/ Cooperative Agreement between the City of Newport Beach and the MacArthur Blvd. City of Irvine for the construction of the improvements at Jamboree Intersection Road and MacArthur Boulevard and authorize the Mayor and City Improvements Clerk to execute the Agreement. (38) 6. NEWPORT CENTER FIRE STATION NO. 3 MECHANICAL C -3385 UPGRADE AND RESTROOM ADDITION (C -3385) — Newport Center COMPLETION AND ACCEPTANCE. 1) Accept the work; Fire Station No. 3 2) authorize the City Clerk to file a Notice of Completion; 3) authorize (38) the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one year after Council acceptance. 7. CORONA DEL MAR COMMUNITY YOUTH CENTER C -3505 DRAINAGE REMEDIATION — AWARD OF CONTRACT Corona del Mar (C- 3505). 1) Approve the plans and specifications; 2) award a Community Youth contract (C -3505) to Brongo Construction for the total bid price of Center $64,650 and authorize the Mayor and the City Clerk to execute the (38) contract; and 3) establish an amount of $6,500 to cover the cost of unforeseen work. MISCELLANEOUS ACTIONS 8. HUMAN SERVICES GRANTS FOR 2002 -2003. Authorize the Human Services distribution of grants totaling $25,000 from Fund #010 -20- 0100 -8254 Grants to various Human Services organizations that serve the Newport (40) Beach community. 9. PURCHASE OF REPLACEMENT VEHICLE. 1) Approve the BA -020 purchase of a replacement police patrol vehicle, associated Purchase of equipment, and setup costs in the amount of $29,800; and 2) approve Replacement a budget amendment (BA -020) transferring $29,800 from the Vehicle unappropriated balance of the Equipment Replacement Fund to (40/44) Account No. 6120 -9100. Volume 55 - Page 443 City of Newport Beach City Council Minutes October 22, 2002 10. ADOPTION OF A PROGRAM FOR DISADVANTAGED BUSINESS ENTERPRISE (DBE) REQUIREMENTS FOR FEDERAL FISCAL YEAR 2002 -2003. 1) Approve the DBE Program for the City of Newport Beach for Federal Fiscal Year beginning October 1, 2002 and ending September 30, 2003; and 2) authorize the Public Works Director to submit the approved DBE Program to Caltrans staff. 11. LIVE SCAN FINGERPRINT SYSTEMS PURCHASE. 1) Approve purchase of two replacement Live Scan Fingerprint Systems from "Identix" with the specified equipment, software, services, and extended maintenance as outlined in the staff report; and 2) approve funding for specified equipment, software, and services for a three - year period through the City of Newport Beach "Lease Purchase Consolidation" program as directed by the Administrative Services Department. 12. Item removed from the Consent Calendar by a member of the audience. 13. APPOINTMENT OF ECONOMIC DEVELOPMENT COMMITTEE (EDC) REPRESENTATIVE TO GENERAL PLAN UPDATE COMMITTEE. Item pulled off calendar. 14. Item removed from the Consent Calendar by Council Member Heffernan. 15. Item removed from the Consent Calendar by Mayor Ridgeway. S22. Item removed from the Consent Calendar by Council Member Glover. Motion by Mavor Pro Tern Bromberg to approve the Consent Calendar, except for those items removed (1, 3, 12, 14, 15, and S22) and the item pulled off calendar (13). The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None • Christina Deaton, Orange County Grand Jury member, invited anyone who would be interested in serving the community and the County to apply for the 2002 -2003 Orange County Grand Jury. Ms. Deaton provided the City with the appropriate forms. J. ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE REGULAR MEETING OF OCTOBER 8, Volume 55 - Page 444 INDEX Disadvantaged Business Enterprise (DBE) Program (74) Live Scan Fingerprint Systems (70) Economic Development Committee (24) City of Newport Beach City Council Minutes October 22, 2002 INDEX 2002. Jim Hildreth, The Grand Canal, stated that volume 55, page 430 of the regular meeting minutes of October 8, 2002, should be corrected to reflect that he was speaking of documents and not just paperwork. Motion by Mayor Pro Tern Bromberg to waive reading of subject minutes, approve as written and order filed. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 3. PLANNING DEPARTMENT FEE SCHEDULE UPDATE. Ord 2002 -26 Planning Council Member Proctor stated that the proposed fee of $195 for Department Fees satellite dish and antenna permits seems inappropriate for those who (40/68) want an alternative to cable television. City Attorney Burnham explained that there are two categories of satellite dishes, those that comply with the development standards and do not require a permit and those that do not comply with the development standards in the zoning code and do require a permit. Council Member Proctor stated that the City Manager had told him that the small satellite dishes would be required to have a permit. City Manager Bludau stated that he had been incorrect. Planning Director Temple confirmed that the small satellite dish antennas are permitted by right and do not require a building permit. She added that although the section of the code dealing with amateur radio and satellite dish antenna permits is old, it is important because it addresses aesthetics and provides the mechanism for waivers of the development standards. Planning Director Temple stated that there are still some of the larger satellite dishes within the City. Motion by Council Member Proctor to introduce Ordinance No. 2002 -26 amending Exhibit "A" of Chapter 3.36 of the NBMC pertaining to the percentage of cost recovery for Planning Department fees. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 12. CITY S SUPPORT FOR PROPOSITION 50 (WATER Proposition 50 SECURITY, CLEAN DRINKING WATER, COASTAL AND (48) BEACH PROTECTION ACT OF 2002). Volume 55 - Page 445 City of Newport Beach City Council Minutes October 22, 2002 INDEX Marianne Zippi, 420 E. Bay Avenue, stated that the Los Angeles Times supports a yes vote on Proposition 50, but the Orange County Register gives a more compelling reason to vote no. She explained that the $3.44 billion state water bond will cost taxpayers $6.9 billion over the thirty -year term of the bond, and does much to enhance the special interests of the environmental groups who are promoting it. She stated that bond dollars would be transferred to big property owners who would then transfer their properties to nature conservancies under the guise of watershed improvements. She noted that the proposition is funded by developers and conservancies, and requested that the City Council not support it. Mayor Pro Tern Bromberg stated that although some money will go to developers, it will be the first time that money from a State water bond issue will go to Orange County. He stated that the proposition is supported by a wide range of environmental organizations. Motion by Mavor Pro Tern Bromberg to authorize the Mayor to issue a letter to the proponents of Proposition 50 stating the City of Newport Beach's formal support of Proposition 50. Assistant City Manager Mff stated that the recommendation to support the proposition comes from the Coastal/Bay Water Quality Citizens Advisory Committee (CBWQ). He stated that the proposition is the fourth bond act to go towards water quality projects, and pointed out that the City has been able to access a significant amount of money through the previous bond acts and expects to do so again with Proposition 50. Assistant City Manager Kiff additionally noted that the City must meet certain Total Maximum Daily Load (TMDL) requirements and would have to pay for the projects out of the general fund if the money were not provided from other sources. He explained that Newport Bay has four TMDL's and is the first water body on the West Coast to have such requirements placed on it by the U. S. Environmental Protection Agency (EPA). Council Member Glover stated that there are different levels of sophistication in the various propositions, and some are not solving the problems that they were designed to. She stated that propositions are a big business in California and not in the best interest of Californians. Assistant City Manager Kiff pointed out that the CBWQ did not take a position on Proposition 51, which reallocates sales tax on automobiles to specific projects. Jim Hildreth, The Grand Canal, suggested that the public read the California Official Voter Information Guide and specifically referred to the information provided in the pamphlet on Proposition 50, beginning on page 75. He expressed his concern for the pilot and demonstration projects that would treat or remove petroleum products. Mr. Hildreth stated that it could mean that any vessels that use gasoline might be banned from any drinkable water source, which means that people that like to fish in fresh water sources from Volume 55 - Page 446 City of Newport Beach City Council Minutes October 22, 2002 a boat may not be able to anymore. Additionally, Mr. Hildreth expressed concern for the clause written throughout the proposition that states that the Legislature may enact legislation when necessary to implement the various chapters in the proposition. Mr. Hildreth stated that he could support additives being removed from gasoline products, but he can't support restrictions on people being allowed to use the waterways. Lastly, he noted that electric engines pollute more than gasoline engines because electrical power plants pollute. Dennis Baker, 706 %x Begonia, stated that he is a volunteer naturalist in the Upper Newport Bay. He stated that the reason the environmental community supports propositions such as Proposition 50 is because they know that the larger projects, such as the Upper Bay dredging project, have to draw money from many different sources. He asked the City Council to approve the recommended action. Council Member Heffernan asked if the California League of Women Voters had taken a position on the proposition. Council Member Proctor stated that they are in support of it. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Adams, Proctor, Mayor Ridgeway Noes: Glover Abstain: None Absent: None 14. CORONA DEL MAR CROSSWALK UPDATE. Council Member Heffernan asked what the status was of the City's attempt to have CalTrans relinquish control of Coast Highway in Corona del Mar. Secondly, he asked what the City would do with the crosswalk if it weren't in the control of CalTrans. City Manager Bludau stated that the City has not been involved in the discussions with the State in regards to the relinquishment of Coast Highway in Corona del Mar. He explained that a consultant hired by the Vision 2004 group has been handling the matter. He added, however, that the City does receive status reports. Council Member Heffernan asked if this was prudent, given that the City would be liable for the street if the relinquishment occurred. City Manager Bludau stated that if CalTrans were willing to offer relinquishment, the terms and conditions of the agreement would have to be approved by the City Council. Council Member Heffernan asked when staff would become a part of the process. Public Works Director Badum stated that City staff is currently working with CalTrans staff on the nuts and bolts of the relinquishment document, and that it should be ready to present to the Transportation Commission in November or December. In regard to Council Member Heffernan's second question, Public Works Director Badum stated that a study is being put together that will address the crosswalks and that it will be done regardless of the Volume 55 - Page 447 INDEX Crosswalk (85) City of Newport Beach City Council Minutes October 22, 2002 relinquishment. He stated that the City places a higher priority on the pedestrian crossings, whereas CalTrans balances safety with regional traffic needs. City Manager Bludau added that the City is already addressing the liability issues involved with a possible relinquishment. Public Works Director Badum stated that the section of Coast Highway under discussion is from Newport Coast Drive to Jamboree Road. Motion by Council Member O'Neil to receive and file. Dick Nichols, 519 Iris, stated that he is pleased to see the issue being addressed by the City Council and was glad to hear that the pedestrian that was recently struck by a vehicle was not seriously injured or killed. Mr. Nichols stated that he is also concerned about the liability issue. He noted that during a recent visit to the area, he witnessed an accident and heard that another one occurred at about the same time. Due to the area being prone to accidents, Mr. Nichols suggested that signs be installed that warn drivers not to block the intersections. He stated that the streets aren't wide enough to install traffic signals. Laura Dietz thanked the City Council for addressing the issue. She suggested that a portable yield sign be considered in an attempt to slow the traffic in the area, while a permanent solution is sought. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 15. CITY COMMUNICATION SUMMARY. Assistant City Manager Kiff acknowledged Public Information Officer (PIO) Jackson, the City Clerk and the Management Information Systems (MIS) Division for their assistance with the staff report and the information that is made available to the public. He stated that current opportunities to access City information include live and tape delayed cable castings of the City Council meetings through Cox and Adelphia. He confirmed that the Cox feeds do include identifiers of the items being discussed. He explained that Cox uses the Adelphia signal in its entirety, but added that the Study Session tapings may not include this information. Assistant City Manager Kiff stated that there are also several ways for citizens to voice their opinions to the City Council. They can either e-mail the council members individually from the City's website, leave a message on the City's opinion line at 949.644 -3001 or send an e-mail to the City's opinion e-mail at opinions(Wity.newoort- beach.ca.us. Assistant City Manager Mff stated that the City has also been working on a master e-mail list, which currently has Volume 55 - Page 448 INDEX City Communications (35) City of Newport Beach City Council Minutes October 22, 2002 INDEX approximately 600 names on it. He stated that the City would like to see the list grow, that anyone can ask to have their name added and that it will be used to send routine updates. Assistant City Manager Kiff stated that other sources of information include a news and events listing on the City's website, an aggressive distribution of press releases to the local media and four monthly cable programs. He reported that information from the City Clerk's office includes electronic copies of agendas, minutes and staff reports from 1996, and minutes, ordinances and resolutions from 1906. Assistant City Manager Kiff stated that additional information on the City's website includes the City Charter, Municipal Code, Council Policy Manual, election information, Boards, Commissions & Committees Manual, passport information and City activities calendar. Using an overhead projector, he demonstrated use of the City's website and how to access some of the information. The City's website address is http: / /www.city.newport- beach.ca.us. Council Member O'Neil asked if City maps were available on the website. Assistant City Manager Kiff displayed a general map of the City, and stated that more detailed maps might be available in the future. Mayor Ridgeway noted that the City activities calendar, which shows the date, time and place of boards, commissions and committees meetings, would also be posted. City Clerk Harkless confirmed that the calendar is already being posted on the City's bulletin board, with copies available in the City Clerk's office and in the main lobby. Assistant City Manager Kiff stated that opportunities that may be available in the future include an expansion of the activities calendar, City Council meeting video streaming and a web -based opinion program. Council Member Glover stated that the Orange County Board of Supervisors meetings are telecast on the web. Assistant City Manager Kiff stated that video streaming would provide that option for either live or on- demand viewing. Council Member Glover asked how a viewer could provide public comments. Assistant City Manager Kiff stated that some entities provide an opportunity for viewers to call in and have their comments amplified at the meeting, and that it is something that could be considered by the Ad Hoc Telecommunications Committee while negotiating with the cable franchises. Council Member Heffernan stated that the renewal of the cable franchises might provide the opportunity for the City to negotiate such expansions, if the assessment process indicates that this is what the public wants. Council Member Adams noted that the council members continue to be very accessible. Assistant City Manager Kiff demonstrated how a citizen can e-mail a council member from the City's website. Volume 55 - Page 449 City of Newport Beach City Council Minutes October 22, 2002 INDEX Dolores Otting, Newport Beach, suggested that the staff reports be made available on Acrobat Reader, since the Alchemy program is time consuming to load. Secondly, she suggested that audiotapes of the City Council and Planning Commission meetings be made available for purchase. Ms. Otting stated that it wouldn't cost that much money and would address a serious need. Per Council Member Heffernan's question, City Clerk Harkless stated that her office rarely gets even two requests a year for an audiotape of a City Council meeting. Jim Hildreth, The Grand Canal, stated that he has been requesting public information and has had nothing but problems with the Harbor Resources Department. Mr. Hildreth stated that he has been told that the documents were sent out to be microfiched, which means that the City was in possession of them so should be able to produce them, since the City is required to maintain such documents. Mr. Hildreth suggested that Harbor Resources be audited and the documents that he is requesting be made available through the City's website. Tom Hyans, Newport Beach, stated that it is very cumbersome to listen to the audiotapes of the Planning Commission meetings, because it has to be scheduled through the Planning Department and done in the Planning Department offices. He stated that the City Council meetings are rebroadcast four times, which makes it much easier to record information from the meetings. City Clerk Harkless stated that staff has requested that the company handling the sound system in the Council Chambers provide a quote for installing a dual- cassette tape. She stated that audiotapes, if available, would be provided at a cost. She didn't think many people would be willing to pay for a tape, since they often just want to come in and listen to only a portion of a meeting. Derrick Gleason, Santa Ana Heights, stated that he has been going to South County cities on his own and is hoping that everyone can work together in moving the airport at El Toro forward in a positive way. Mr. Gleason stated that he is trying to relay information and good citizenship spirit to all of the people in South County. Mayor Ridgeway informed Mr. Gleason that this was not the time for public comments on non - agenda items. City Manager Bludau pointed out that the staff report for Item No. 15 provides an example of the new format that will be used for all staff reports in the future. He noted that it includes the name of the staff member who wrote the report, their phone number and their e-mail address. In regard to the activities calendar, Council Member Heffernan stated that the City Clerk should be the hub for all meetings and Volume 55 - Page 450 City of Newport Beach City Council Minutes October 22, 2002 INDEX keep the calendar current. Council Member Proctor stated that the City Council was provided with a summary of the situation with Jim Hildreth, which he found to be very helpful. Council Member Proctor suggested that the summary be posted on the City's website, so that members of the public who aren't aware of the situation can access this information also. Mayor Ridgeway read from a portion of the report, which was prepared by Assistant City Manager Kiff, and stated that the City has given Mr. Hildreth everything he has asked for and bent over backwards to accommodate his requests. Mayor Ridgeway noted that he can't understand why Mr. Hildreth continues to harass the City. He agreed with Council Member Proctor's suggestion of posting the summary on the City's website. Council Member Glover stated that she forwards a -mails she receives to the other council members, the City Manager and possibly the appropriate staff member. She stated that she receives a response through the e-mail system if a staff member is on vacation. She suggested that staff members who will be on vacation also setup their voicemail to indicate that they are out of the office, in case someone is trying to reach them by phone. Council Member Adams asked the City Manager if the correspondence sent to the Mayor and the council members is logged and tracked by the City Manager's office. City Manager Bludau stated that he makes sure responses are sent to those who have questions, but responses may not be sent to those who are just expressing an opinion. Council Member Adams stated that it is up to the current Mayor but when he was Mayor, he felt that every piece of correspondence should be responded to. City Manager Bludau stated that it would be a huge undertaking to do so. Mayor Ridgeway stated that every letter that is addressed to the Mayor and received by the City Clerk's office is distributed to the entire City Council, the City Manager and staff members. He stated that it is not solely the Mayor's responsibility to make sure that responses are sent. Council Member Adams stated that he wasn't inferring that the letters do not get distributed or read. He stated that he is more concerned about the coordination of the responses, and the City Council knowing how a particular piece of correspondence was responded to. He suggested that it would be appropriate for the Mayor to handle the coordination of such tracking, and something that he tried to do when he was Mayor. Motion by Council Member Glover to receive and file. The motion carried by the following roll call vote: Volume 55 - Page 451 City of Newport Beach City Council Minutes October 22, 2002 Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: :None S22. CITYWIDE TELEPHONE SURVEY RESULTS. Council Member Glover asked where the telephone survey fits into the general plan update process. Assistant City Manager Wood stated that the recommendation from the General Plan Update Committee (GPUC) on the visioning process included a number of methods for gaining public input. The telephone survey was included, as well as four newsletters with mail back questionnaires, the visioning festival and eight neighborhood workshops. She noted that the earlier activities provided input from "self- selecting participants ', whereas the telephone survey provided input from people who wouldn't normally participate in community visioning activities. Assistant City Manager Wood stated that Godbe Research & Analysis wrote the questions that were used in the telephone survey, with a set directed at residents and another at businesses. She stated that 1000 residents and 175 businesses participated. The topics for the questions were suggested by the two general plan committees, GPUC and the citizens General Plan Advisory Committee (GPAC). After the questions were drafted, a subcommittee of GPUC reviewed them. Per Council Member Adams' question, Assistant City Manager Wood stated that the subcommittee consisted of Mayor Pro Tem Bromberg, Planning Commissioner Agajanian, Environmental Quality Affairs Citizens Advisory Committee (EQAC) member Barry Eaton and Allan Beek as a representative of the Measure S supporters. Assistant City Manager Wood stated that the results included in the staff report are considered preliminary or "topline" results. She explained that analyses, cross tabulations and breakdowns are currently being done by Godbe Research & Analysis, and should be available for presentation to GPUC and GPAC at their November 4, 2002, meetings. Council Member Glover stated that the age breakdown indicates that Newport Beach isn't as old of a community as she thought it was. She also noted how split the community is on their vision of the future, and how the general plan committees will have an interesting task ahead of them. Council Member Glover additionally noted the similarities in the responses by the residents and the businesses, which didn't surprise her since most of the small business owners in the City also live in the City. She stated that she'll be eager to learn more about the results of the survey, but that the initial information is very interesting. Assistant City Manager Wood stated that GPAC has already begun conversations about the results and how the input from the telephone survey compares to the input received through Volume 55 - Page 452 INDEX General Plan Update (68) City of Newport Beach City Council Minutes October 22, 2002 INDEX the other methods. She stated that it will help guide what input will be sought at the Community Visioning Summit on November 16, 2002. Council Member Glover expressed her disappointment that the economic assessment would not be done simultaneously. Assistant City Manager Wood stated that it is unfortunate, but the fiscal impact and traffic models would be available for the next phase of the process so that alternatives for land use and circulation improvements can be analyzed. Motion by Council Member O'Neil to receive and file. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None K. PUBLIC COMMENTS • Madelene Arakelian stated that she wanted to talk about ethics of politics, noting that Dave Ellis was hired by the City Council and paid $458,000. She stated that Mayor Ridgeway and Council Member Adams have also hired Mr. Ellis to run their City Council election campaigns, and are using the police and fire unions to send out mailers in support of their campaigns. She stated that ethics and politics are in question, and asked if the two would vote on salary negotiations with taxpayers in mind or their obligations to the City unions. She suggested that the voters read the fine print and follow the money. • Heather Somers, Costa Mesa resident, stated that the Orange County Water District (OCWD) and the Orange County Sanitation District (OCSD) are planning to build a massive project that would put recycled sewer water into the drinking water system. She stated that the project is known as the Ground Water Replenishment System (GWRS) and will, in part, require water bills to increase. She stated that the increase is also said to be due to the need to purchase water from the Metropolitan Water District of Southern California (MWD) and to refund the reserve account for capital improvements paid out during the past year. Ms. Somers stated that water will not be available from the GWRS program until 2007/2008, and could be delayed by the public's objections. • Derrick Gleason, Santa Ana Heights resident, continued with his comments from earlier in the meeting. He stated that he believes that a different way of looking at the airport issue should be considered, and suggested that the entire John Wayne Airport (JWA) property be annexed into Newport Beach. He stated that the City needs more control over JWA for everyone's quality of life. • Council Member Glover stated that she has been a strong advocate of Volume 55 - Page 453 City of Newport Beach City Council Minutes October 22, 2002 INDEX the City purchasing JWA. She stated that the City of Irvine will probably end up with the land at El Toro, which would set a precedence. She stated that purchasing JWA would cost a lot of money, but that airports also bring in revenue. Council Member Glover stated that she has spoken to the City Attorney about it. She stated that Newport Beach will always be an airport city, but purchasing JWA would give the City more control. • Jan Vandersloot, Ocean Outfall Group and Balboa Arbor Society, stated that the Ocean Outfall Group is split on its support of the GWRS program. He stated that all of the members are in favor of full reclamation, but not all are in agreement with the details of the GWRS program. Secondly, Dr. Vandersloot stated that City workers have been seen applying a substance to the stumps of the trees on Main Street that were cut down on September 18, 2002. He presented photos showing the stumps, and requested that the substance be analyzed and identified. He also provided a sample of the substance that he scraped from the stumps. He stated that the stumps are accessible to the public and signs should be posted warning of the hazard. He further requested that the City determine if City workers did apply the substance. • City Attorney Burnham stated that he spoke with the attorney for the Balboa Arbor Society and provided information received from the General Services Director. City Manager Bludau stated that Roundup was applied to the tree stumps the day they were cut down, but that City employees have not performed additional applications. He stated that the issue can be solved by receiving approval from the court to remove the tree stumps. General Services Director Niederhaus stated that a licensed vector control staff member did apply Roundup to the tree stumps to kill the root systems immediately following the removal of the trees. He stated that the area was barricaded for several hours after the application, that it was absorbed into the tree stumps and that there was no threat to the public. General Services Director Niederhaus stated that he heard about a mysterious substance on the stumps about a week ago, but that vector control determined it to be a form of cooking grease or a natural mold being formed by the dieing trees. He stated that City staff did attempt to wipe the substance from the trees. City Attorney Burnham added that he was told by the attorney for the Balboa Arbor Society that the Society objects to having the tree stumps removed. • Linda Grant, president of the Balboa Arbor Society, stated that a City employee was seen applying a substance to the trees. She requested that the City honor the court order. Additionally, she requested that the two remaining trees be left where they are. She stated that they don't interfere with anything and she'd like to meet with the Mayor about it. • Christine Carr, Newport Beach, stated that she was there the day the trees were cut down and was told by a City animal control officer that the substance on the stumps was highly toxic. She stated that there was caution tape in place, but that signs should also be posted when Volume 55 - Page 454 City of Newport Beach City Council Minutes October 22, 2002 INDEX poison is being used. She stated that she has also learned that letters are usually sent to area residents when spraying is going to occur. • Mayor Ridgeway requested that the City Manager review the protocol used on the Main Street trees, but that he was of the understanding that they were not sprayed. • Jim Hildreth, The Grand Canal, stated that notices were sent out by the City regarding the removal of the utility poles on Little Balboa Island. Regarding the pole behind his property, mentioned earlier in the meeting, he stated that he has a lot of neighbors who are in favor of the pole remaining. Mr. Hildreth stated that there are many flaws to the summary presented to the City Council members regarding his issue, as also mentioned earlier in the meeting. He specifically stated that the structure is not a navigational hazard and then displayed pictures showing this. He stated that the City needs to reconstruct the structure so that it can be used. He also requested that the City not hide documents. Lastly, Mr. Hildreth stated that Mayor Ridgeway and Council Member Adams have campaign signs nailed to trees on Dover Drive. • Mayor Pro Tern Bromberg assured the residents on Little Balboa Island that the utility pole behind Mr. Hildreth's property would be removed. • Dolores Otting, Newport Beach, stated that she has been taking care of her mother -in -law in a nursing home that's in the City. She stated that the nursing home does not meet State and Federal guidelines, yet the City gives them a business license. She stated that she called the State's licensing and certification office at 714- 456 -0630, but was discouraged from filing a complaint and given a cumbersome method for obtaining a copy of the citations issued to the nursing home. Ms. Otting requested that the City obtain the citations of all of the nursing homes in the City, maintain them on a monthly basis and have them available at the Central Library. She offered her assistance. • Mayor Ridgeway requested that the City Manager look into whether the City would provide such assistance. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE • Regarding the Newport Coast Advisory Committee (NCAC), Council Member Heffernan reported that the slope maintenance issue has been discussed and that a draft of the final term sheet of the slope maintenance agreement should be ready for the NCAC meeting in November. He stated that the Fire Department has also been meeting with the homeowner associations to inform them of the results of an assessment done on the slope areas. He stated that most slopes were in poor condition, representing a high fire danger. Council Member Heffernan stated that a deadline was given for the associations to bring the slopes into compliance. He stated that the Volume 55 - Page 455 City of Newport Beach City Council Minutes October 22, 2002 INDEX Newport Coast slope maintenance issue is very complicated. • Regarding the John Wayne Airport (JWA) Settlement Extension Ad Hoc Committee, Council Member Glover stated that the City and County have approved amendments to the JWA Settlement Agreement that extend the term and authorize the County to allow limited increases in flights, passengers and gates. She stated that the amendments will soon be filed with the Federal court. Council Member Glover reported that approval from the Federal Aviation Administration (FAA) and Air Transport Association (ATA) is not needed, and it is hoped that they will not comment on the agreement. She acknowledged the efforts of each of the City Council members, the City Manager and the City Attorney. She further acknowledged Council Member Adams who, as Mayor, appointed herself and Council Members Proctor and O'Neil to the Committee in January 2001. She stated that they were successful in having the settlement agreement voted on a week prior to the vote on Measure W. Council Member Glover stated that with additional input and support from Council Members Adams and Heffernan, and Mayor Pro Tem Bromberg, the County Board of Supervisors certified the Environmental Impact Report (EIR) and approved Scenario One on February 26, 2002, and unanimously approved the amendments on June 25, 2002. She noted that just as each council member played a key role in the development and approval of the amendments, each member has played a key role in developing the strategy to insure that those amendments protect the residents as intended. She fuurther acknowledged Alan Murphy, who runs JWA and has met with the FAA, ATA and members of Congress. To insure that the residents are protected in the future to the best of the City's ability, Council Member Glover stated that the Committee is requesting that the City Council consider new policies that will guide futuure action by the City Council. She suggested that this be discussed at the City Council meeting of November 12, 2002. In closing, she stated that the success of the extension of the settlement agreement was due, in part, to working with the other cities in the County, Washington D. C. and the County. • Status report — Ad Hoc General Plan Update Committee (GPUC). Council Member Adams noted that Assistant City Manager Wood gave a report earlier in the meeting. • Status report — Local Coastal Program (LCP) Certification Committee. Assistant City Manager Wood stated that the Committee reviewed and commented on the introduction and the land use chapter of the land use plan. She stated that staff has also received the three technical reports from the consultants. She stated that the Committee directed staff to submit the first two chapters of the land use plan to the Coastal Commission staff and the general plan committee. Council Member Glover asked if there were parcels in the City that were affected by the access issue requirement to give up certain concessions if adding to a home. Assistant City Manager Wood stated Volume 55 - Page 456 City of Newport Beach City Council Minutes October 22, 2002 M. N. that it is not a part of the LCP certification. Mayor Ridgeway stated that it was considered during a City Council Study Session and one was expiring, so it was accepted. The others will be accepted at a later date. Mayor Pro Tem Bromberg stated that the issue was discussed and it was decided to hold off on the dedication of a number of the easements. Additionally, he acknowledged the Committee for the work they've done. Council Member Heffernan asked if money from Proposition 51 would be used for the cleanup of the El Toro base. Council Member Proctor stated that Proposition 51 allocates $200 million for approximately 50 different projects, and does not include the cleanup of El Toro. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 16. PLANNING AGENDA FOR OCTOBER 17, 2002. At their meeting of October 17, 2002, Assistant City Manager Wood stated that the Planning Commission recommended City Council approval of the amendment to the specific plan for Balboa Village and adoption of the Balboa Village design guidelines. Secondly, she reported that a variance for a home on 30th Street was continued to allow for proper notification. And, lastly, a use permit was approved for an alcoholic beverage outlet, a Red Robin, in Fashion Island. Motion by Mayor Pro Tem Bromberg to receive and file the written report. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None PUBLIC HEARINGS 17. CODE AMENDMENT NO. 2002 -005 (PA2002 -161) BALBOA VILLAGE DESIGN GUIDELINES (contd. from 9124102). Mayor Ridgeway opened the public hearing. Tom Hyans, president of the Central Newport Beach Community Association, stated that the development standards apply to a portion of the commercial area that the Association feels should be retracted. He noted that staff has explained that the standards should apply to the areas currently zoned as commercial. Mr. Hyans stated that the Volume 55 - Page 457 INDEX Planning (68) Ord 2002 -271 PA2002 -1611 Code Amendment 2002 -0051 Balboa Village Design Guidelines (68) City of Newport Beach City Council Minutes October 22, 2002 Association would still like to see a way for the Balboa commercial area to be contracted, although he is not proposing rezoning. He confirmed that the suggestions to extend the single - family extensions to duplexes and adding language to discourage repetition of building designs were added. Mr. Hyans suggested that the parking exemptions given to the commercial properties also be given to the residential properties. Lastly, Mr. Hyans pointed out that all of the money spent in Balboa Village has been public money. He noted that previous revitalizations used a combination of private and public money. He agreed that revitalizations benefit the commercial properties and they should contribute to the funding. Jim Hildreth, The Grand Canal, stated that the peninsula must not be like Balboa Island, noting that three -story structures are being permitted on the peninsula. He stated that it was determined in 1971 that Balboa Island could not support taller structures. In regard to parking, Mr. Hildreth stated that he hoped that a study was done to determine how many customers and employees would be utilizing the area, and if adequate parking was being provided. Hearing no further testimony, Mayor Ridgeway closed the public hearing. Motion by Mayor Pro Tern Brombere to introduce Ordinance No. 2002 -27 (CA 2002 -005) and pass to second reading on November 12, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 18. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE TO TIM GREENLEAF ENGINEERING. City Manager Bludau stated that Tim Greenleaf Engineering would be meeting the same requirements as the other non - exclusive solid waste collection franchisees in the City. Per Council Member Adams's question, General Services Director Niederhaus stated that the City has a total of 21 such franchises. Mayor Ridgeway opened the public hearing. Hearing no testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member Glover to adopt Ordinance No. 2002- 25 granting a Non - Exclusive Solid Waste Franchise to Tim Greenleaf Engineering and pass to second reading on November 12, 2002. Volume 55 - Page 458 INDEX Ord 2002 -25 Solid Waste Collection Franchise/Tim Greenleaf Engineering (42) City of Newport Beach City Council Minutes October 22, 2002 The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 19. INVOLUNTARY TERMINATION OF NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE WITH OCEAN WASTE AND RECYCLING, LLC. General Services Director Niederhaus stated that there is a significant amount of documentation and a chronology of the past sixteen months of dealing with Ocean Waste & Recycling included in the staff report. He stated that the difficulty has been in acquiring their cooperation, and that the City has been lenient and patient in dealing with them since July 2001, when they were first awarded a solid waste franchise with the City. He stated that the City allowed them to begin operation without insurance and, with the exception of a one -week period, Ocean Waste & Recycling has continued to operate without insurance. General Services Director Niederhaus stated that the staff report erroneously notes that the franchise agreement prohibits the mixing of solid waste by a hauler between cities, but it is the City's recycling element that disallows the mixing of waste. He stated that Ocean Waste & Recycling operates in Newport Beach and Costa Mesa, and solid waste taken to the landfill must be credited to the correct city. General Services Director Niederhaus stated that it was found that the reports from Ocean Waste & Recycling did not coincide with what was being taken to the landfill. A list of deficiencies was developed and Ocean Waste & Recycling was given the opportunity to correct them. Since at least four of the deficiencies have still not been corrected, staff is recommending the revocation of the solid waste franchise by the adoption of the resolution. General Services Director Niederhaus pointed out that Section 3 of the resolution provides the opportunity for Ocean Waste & Recycling to have their franchise reinstated if they reapply for a franchise, obtain the correct insurance, pay all back fees and correct all recycling reports. He stated that the single biggest problem is that the recycling has not been documented correctly, which is done by all of the other haulers on a quarterly basis. He stated that this is important because it is how the City maintains its recycling mandate. He stated that Assembly Bill 939 (AB939) holds a penalty of $10,000 per day for failure to maintain 50% recycling. Council Member Adams confirmed with General Services Director Niederhaus that a dispute process is in place in the agreement if Ocean Waste & Recycling decides to challenge a termination and that the City has handled the termination process correctly. Volume 55 - Page 459 INDEX Res 2002.67 Solid Waste Collection Franchise /Ocean Waste and Recycling, LLC (42) City of Newport Beach City Council Minutes October 22, 2002 INDEX Mayor Ridgeway added that Section 17 of the agreement allows the franchise to be terminated by the City Council pursuant to Section 12.63.130 of the Newport Beach Municipal Code. City Attorney Burnham further confirmed that the City has followed all procedural requirements necessary to terminate the agreement and the grounds for termination are supported by the information in the staff report. General Services Director Niederhaus confirmed that he has personal knowledge of the information in the staff report that supports the findings of termination. He stated that the findings of fact are correct, that he has investigated them and met with Ocean Waste & Recycling in an attempt to resolve the differences. He noted that this is the first time the City has encountered less than full cooperation from a solid waste hauler. Mayor Ridgeway opened the public hearing. Stephen Sawyer, attorney representing Ocean Waste & Recycling, stated that neither the proposed resolution nor the staff report mention a letter from the City Manager dated September 19, 2002, stating that the insurance matter had been rectified. Mr. Sawyer stated that he has documentation showing that Ocean Waste & Recycling has been properly insured since it began operation in 2001. Additionally, Mr. Sawyer stated that within the past five days, Ocean Waste & Recycling has submitted the required reports. Mr. Sawyer also pointed out that, in August 2002, the City's auditors showed that Ocean Waste & Recycling owed $1,354 in franchise fees for the quarter ending December 31, 2001. Mr. Sawyer stated that these fees have been paid. The City's allegation that Ocean Waste & Recycling owes $17,000 in franchise fees is without foundation. Mr. Sawyer stated that Ocean Waste & Recycling has paid the franchise fees and submitted the required reports for the first three quarters of 2002. He stated that no letter was received from the City indicating any problems with the reports. Additionally, he stated that there are no requirements in the ordinance or the franchise agreement prohibiting the mixing of wastes, although Ocean Waste & Recycling did provide detailed information on all of the recycling done in 2002. In conclusion, Mr. Sawyer stated that the proposed action at the current meeting would be final and conclusive, and Ocean Waste & Recycling would only have writ of mandamus as a course of action. He requested that the City Council table or continue the matter to allow him time to meet with City staff and submit the documentation that he has. He stated that Ocean Waste & Recycling is a "mom and pop" operation in a highly competitive field, which is filled with large companies that have the staff and the ability to submit the required forms. He stated that Ocean Waste & Recycling has attempted to comply and that the matter is not one of noncompliance, it is one of late compliance. Mayor Pro Tem Bromberg stated that the information from staff shows that the general liability policy for Ocean Waste & Recycling expired on September 28, 2002, and was not renewed. Mr. Sawyer stated that the general liability policy has been in effect continuously and will be in effect through March 2003. He stated that he had the Volume 55 - Page 460 City of Newport Beach City Council Minutes October 22, 2002 INDEX documentation with him. City Attorney Burnham stated that this would be the time to present evidence to refute the allegations in the staff report and to contest the proposed findings in the resolution. Council Member Proctor asked Mr. Sawyer if the quarterly franchise fees had been paid pursuant to the agreement. He stated that they were paid four times, but they were not paid on time. Council Member Proctor asked if the quarterly recycling reports were submitted prior to October 15, 2002. Mr. Sawyer stated that they were not. Motion by Council Member Glover to adopt Resolution No. 2002- 67 terminating the Non - Exclusive Solid Waste Franchise between Ocean Waste and Recycling, LLC and the City of Newport Beach, at the conclusion of the public hearing. Council Member Glover stated that delayed compliance warrants the action and that staff should not be subjected to such lack of cooperation. Council Member Proctor supported the action based on the findings of fact and the admissions to those findings. City Attorney Burnham asked Mr. Sawyer if he had ample time to present his case. Mr. Sawyer stated that he did not. Council Member Adams confirmed with City Attorney Burnham that the resolution did not include the failure to provide insurance as a basis for the termination. City Attorney Burnham added that although it would not be relevant to the findings in the resolution, it was commented on by the General Services Director so Mr. Sawyer should have the opportunity to comment on it. Council Member O'Neil asked if there were procedures for imposing penalties and late payment fees. City Attorney Burnham stated that it is an option available to the City, as is the termination of the franchise. Mr. Sawyer presented the certificate of liability insurance, as required by the franchise agreement. Mr. Sawyer read from parts of the franchise agreement and noted that the fees paid by Ocean Waste & Recycling and the report submitted on October 17, 2002, were accepted by the City without response. He stated that the City has chosen not to enforce certain provisions in the agreement related to penalties and late fees, meaning that Ocean Waste & Recycling has not been given the opportunity to pay such fees and continue its franchise agreement with the City. Mr. Sawyer additionally noted that the franchise is being recommended for termination not because of any consumer complaints or safety concerns, but because certain reports have not been filed. He stated that he'd like to be given the opportunity to work with Ocean Waste & Recycling on providing the reports in a timely manner. Lastly, he requested that if the resolution is adopted that it not be effective for thirty days. Volume 55 - Page 461 City of Newport Beach City Council Minutes October 22, 2002 INDEX Council Member Adams stated that there has been plenty of time for Ocean Waste & Recycling to comply with the requirements of the franchise agreement. Mr. Sawyer stated that correspondence from the City regarding the problems was not received until May 2002. Council Member Adams stated that the basis of the termination is a finding of failure to submit timely and sufficient quarterly fees. Mr. Sawyer agreed that there had been a delay, but stated that there had also been substantial compliance. City Attorney Burnham noted that resolutions typically take effect immediately. Mr. Sawyer stated that Section 416 of the City Charter states that resolutions and ordinances shall not be effective until thirty days after the date of adoption. City Attorney Burnham stated that the section applies to ordinances only. Mayor Pro Tem Bromberg stated that from September 18, 2001 through August 12, 2002, the City contacted Ocean Waste & Recycling eleven times requesting information or notifying them of a problem. Mayor Pro Tem Bromberg stated that he just doesn't see substantial compliance, and feels that it's too late to allow Ocean Waste & Recycling more time. He stated that he feels that the City has done everything it can in an attempt to obtain compliance. Per Council Member O'Neil's question, Mr. Sawyer stated that he was retained by Ocean Waste & Recycling the day before the current meeting. Council Member O'Neil complimented him for the job he's done, and reminded him that Ocean Waste & Recycling can seek reinstatement if the agreement is terminated. Council Member Proctor stated that facts of findings have been made by admission. He also complimented Mr. Sawyer, but stated that the City Council would be remiss in not acting on the matter expeditiously given the $16,000 that is owed to the City. Mr. Sawyer stated that the amount is only an estimate and isn't consistent with the amount found by the auditors. Hearing no further testimony, Mayor Ridgeway closed the public hearing. Mayor Ridgeway stated that due to the number of incidences that have been violated and the City's jeopardy in not complying with AB939, the City Council has a fiduciary duty to its citizens to terminate the agreement. Mr. Sawyer stated that the reports that were filed on October 17, 2002, did show the recyclable materials were in compliance with the law. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None Volume 55 - Page 462 City of Newport Beach City Council Minutes October 22, 2002 Q Q 20. UNSCHEDULED VACANCIES ON THE CITY ARTS COMMISSION. City Clerk Harkless read the ballot votes of the Council Members for the City Arts Commission as follows: Dennis Baker (Ridgeway, Proctor, Heffernan, O'Neil, Bromberg) Wendy Brooks (Adams, Glover, Bromberg) Ellen Liefer (no votes received) Kirwin Rockefeller (Adams, Glover, Ridgeway, Proctor, Heffernan, O'Neil) City Clerk Harkless announced that Dennis Baker and Kirwin Rockefeller are appointed to the City Arts Commission to fill the two vacancies created as a result of the resignations of Pamela Nestande and Jeffrey Gould. 21. VACATION OF PUBLIC STREET RIGHT -OF -WAY ALONG PORT CHARLES PLACE, ADJOINING LOTS 26 THROUGH 35 OF TRACT NO. 6622. Motion by Mayor Pro Tern Bromberg to adopt Resolution No. 2002 -68 declaring the City's intention to vacate and abandon a 6 -foot wide strip of right -of -way and accepting a map showing the right of way to be vacated; and 2) set November 26, 2002 as the date for the public hearing concerning the intended vacation. Per Council Member Heffernan's question, Public Works Director Badum stated that research was done, but a conclusion was not reached as to why this street has a wider parkway than others. He confirmed that there are no utilities in the area and the City does not expect to have any use for the area in the future. Council Member Heffernan confirmed that the area is currently landscaped for the homes on the street. Council Member Heffernan asked what the City policy is in regard to such situations. City Attorney Burnham stated that the resolution of vacation must include a finding that the area is not necessary for present or perspective public use. Council Member Heffernan confirmed that the vacation would come with no reciprocal compensation from the landowner benefiting from the vacation. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None Volume 55 - Page 463 INDEX City Arts Commission (24) Res 2002 -68 Vacation of Public Street Right-of- Way/Port Charles Place (90) City of Newport Beach City Council Minutes October 22, 2002 Mayor Ridgeway announced that he appointed Mayor Pro Tem Bromberg and Council Member O'Neil to the evaluation committee for the annual review of the City Attorney and City Manager. Q. MOTION FOR RECONSIDERATION - None. R. ADJOURNMENT at 10:20 p.m. to 6:30 p.m. on November 12, 2002, in memory of Steven B. Webster. The agenda for the Regular Meeting was posted on October 16, 2002, at 3:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on October 18, 2002, at 2:45 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 464 INDEX