HomeMy WebLinkAbout1 - 09-08-2009 MinutesAgenda Item No. 1
.September 22, 2009
CITY OF NEWPORT BEACH
City Council Minutes
City Council Study Session
September 8, 2009 — 3:00 p.m.
I. ROLL CALL
Present: Council Member Henn, Mayor Pro Tem Cu Mayor Selich, Council Member
Webb, Council Member Gardner, Counc%puffing
Excused: Council Member Rosansky
II. CURRENT BUSINESS A
1. CLARIFICATION OF ITEtted TH AR.
Council Member Daigle in sh14 (RBF Consulting
for Traffic Engineering Servsuggwith residents.
Council Member Gardner req
(Obstr uction on PJ&c Beaches)
and received clarification on Item 4
to whether canopies can be grouped
regarding Item 5 (Film Ordinance
rified that zoning codes are already in
arding Item 19 (Revision of Two -
Ba um noted that opting out of the two -
the property on Snug Harbor Road is
14 (Traffic Xngineering Services), Council Member Henn requested
i relative to a separated median through the intersection.
ATION.
Jam I ry CMX Director, utilized a PowerPoint presentation to discuss
theict ap ch and the existing conditions selection criteria, proposed field
yond engi is cost estimates. e also explained the ranking matrix, the
benef using synthetic turf, water and labor cost savings, and possible
envintaI issues
.
res nse to Council questions, CMX Director Perryman clarified that the field
I looks like authentic tufts of grass, a grooming machine would be included
in purchase of the field, and the Recreation and Senior Services Department
would be responsible for maintaining the field. He reported on field. temperatures
and color options, the ranking system, and the eight year warranty.
Being that the recommended initial project would cost approximately $1.1 million,
City Manager Bludau recommended taking no action on this for a few months.
3. REVIEW OF MEMORANDUM OF AGREEMENT REGARDING ORANGE
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City of Newport Beach
City Council Study Session
September 8, 2009
COAST RIVER PARK.
Council Member Gardner requested direction, recommended combining the vision,
and asked if the project should be staff directed or Council directed. She also
discussed the need for a more formal governing structure for the park and suggested
inviting the County to participate in the partnership.
Council Member Daigle suggested a discussion led by staff that would include the
County.
Mayor Pro Tem Curry agreed that the park deserves a high level of attention and
noted that he will raise the issue with the County their involvement since he is
a member of the Orange County Parks Commis .
Council Member Webb suggested
discussion.
In response to Council Member
that approximately 20% of the p�
It was the consensus of
member Gardner's contir
ti_ Banning Ranch group to the
question, Co cil Member Gardner stated
cres) is owne the County.
ds be a staff drive ocess, with Council
it on the Board.
4. PAVEMENT MANAGEMENT P GRAM UPDATE.
Project Engineer Tr Peter Bu Bucknam & Associates Contractor,
utilized a PowerPo' pr tion to se the different types of pavement,
factors that affect pav ent s need manage pavement, the Pavement
Management Programs MP), t Ne art Beach PMP, and the Pavement
Condit' dex (PCI). ey ayed m of the City street network and current
stre n lley pavemen ditions. They also reported on the PCI compared to
o r citie the asphalt avement life cycle, common pavement rehabilitation
tegies, a next steps, nticipated funding for street maintenance, projected
PQ , 'als(collectors, dings and recommendations, the concrete pavement
a am, d recommendations for Portland Cement Concrete
treat
st and allev tation.
In r se until questions, Project Engineer Tran stated that slurry sealing is
not do on con to streets, discussed plans far Ocean Boulevard, and discussed
how to y ut ' he budget. Deputy Public Works Director Webb noted that $3.7
million put into the pavement system each year, and that a 45 -year cycle of
mainte ce for concrete streets would cost approximately $327,000 annually to
overlay a concrete streets and $245,000 annually to replace the streets, and that
nere has a life span of approximately 80 years. He stated that the program
slurry sealing to be done once every seven years on each City street, and
tha slurry seal will not be done if a street is due for an overlay. He also discussed
options if the State were to cut gas tax funds.
Council Member Henn recommended adding a PCC component to the PMP
Mayor Selich recommended taking a hybrid approach to replacing the concrete
streets.
Council Member Gardner suggested discussing the item further during the strategic
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City of Newport Beach
City Council Study Session
September 8, 2009
plan meeting in January.
5. WATER MASTER PLAN - EXECUTIVE SUMMARY AND UPDATED
RECOMMENDED CAPITAL IMPROVEMENT PROGRAM.
Assistant City Engineer Sinacori utilized a PowerPoint presentation to discuss the
major water facilities built in the 1920s and 1950s, the existing water system, the
1999 Master Plan objectives, fire protection and flow requirements, what has been
accomplished since 1999, the program pipeline schedule changes, the Industrial Way
Improvement Project, the 2009 Water Master Plan update, what may happen in the
next ten years, and recommendations. I
In response to Council questions, Assis
funding for the program and stated that
tearing up the street more than once. a
City Manager Bludau noted that
was done to help establish those i
III. PUBLIC COMMENTS -None
IV. ADJOURNMENT - 4:54 p.m.
The agenda for the Study Session
the City Hall Bulletin rd lc
Administration Building.
Engineer Sinacori discussed
nts are coordinated to avoid
is a conent of water rates, the study
on September 3, 2009 at 7:45 a.m. on
de of the City of Newport Beach
Recording Secretary
Mayor
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CITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
September 8, 2009 — 7:00
1. STUDY SESSION - 3:00 p.m
II. CLOSED SESSION - 4:51 p.m
A. Conference with Leda
dal?: Seven matters:
* Harvey v. City of Newport Be
07CC05400; Court of Appeals, Fourth Appe
* IBC Litigation Matters: Four matters, all
City of Irvine:
Newport BeachJTnstil
Superior Court Case No,
Newport BeachlTustin 0
Court Case No. 07CC01265_
County Superior Court Case No.
t. Case No. G042257.
of the IBC Litigation against the
Street), Orange County
Alton), Orange County Superior
v. coy of Irvine (HCG), Orange County Superior Court
ort ach/Tustin u. ity of Irvine (Accessory Retail Business
o uperior Court Case No. 30-2009-00264696.
v. of Newport Beach, Orange County Superior Court Case No. 30-
id Forms Coalition u. City of Newport Beach, Orange
No. 30 -2009 002983006_.
t1f1411:1R214Cf1 L1L1ga41UI1 -
One matter:
litigation regarding the claim of discrimination filed by Brett Smith.
or Dismissal of Public Employee LGovernment Code § 54967 : The City
Council will meet in closed session to consider the appointment, employment, evaluation of
performance, discipline, or dismissal of one public employee.
1. Title: City Attorney
III. RECESS,
IV. RECONVENED AT 7:00 P M FOR REGULAR MEETING
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City of Newport Beach
City Council Minutes
September S, 2009
V. ROLL. CALL
Present: Council Member Henn, Mayor Pro Tern Curry, Mayor Selich, Council Member Webb,
Council Member Gardner, Council Member Daigle
Excused: Council Member Rosansky
VI. CLOSED_SESSION REPQRT
Regarding Harney u. City of Newport Beach, City AtNoi that Council
unanimously approved the settlement of the matter and tion Manager
Finnigan has details regarding the settlement.
Regarding Save Irreplaceable Land Forms Coalitio� Beach, City
Attorney Hunt reported that Council unanimously authoa2ed a matter with
the Aerie project applicant. Z
VII. PLEDGE OF ALLEGIANCE- Council b
VIII. INVOCATION -Council Member Webb
IM PRESENTATIONS
Life Saving Award Presentation - elich presented tificates of Recognition to Craig
Covey, Kevin Byrne, and Newport Fire r their life g efforts performed on July
7, 2009 at the West Newport Community nter.
Presentation of Insurance Services O es (I ) Award - Tim Perella, ISO Representative,
presented Mayor Selich and Building Direc E ttar with the award.
Proclamation Reco Aolyn Internationa iteracy Day - Mayor Selich read and presented
the proclamation to C bee r, President the Library Literacy Program Advisory Board.
Proclamation f ity na er Homer udau - Mayor Selich read and presented the
proclamation to City a Selich and Council thanked him for his dedication,
honesty, integrity, leade and hard wor , and for always doing what was best for the City.
City Man u dia d his time with Newport Beach and thanked Council for the
prods n.
X N CE TO THE PU IC
XI. COUNCIL AN UNCEMENTS OR MATTERS WHICH COUNCIL. MEMBERS
W LIKE PL AC D ON A FUTURE AGENDA FOR DISCUSSION ACTION OR
REP NON -DIS SSION ITEM
Council Me Da' a indicated that Coast Guard Lt. Kristopher Ensley will be relocated to
Washington D ork in legislative affairs and believed that he may be able to help the City
with harbor issue
Council Member Gardner reported that the Coastal/Bay Water Quality Committee will be
receiving a presentation about the Poseidon desalination plant on September 10 at 3;00 p.m. in the
Fire Conference Room. She also requested.that an item be placed on the next agenda to establish
a bicycle task force made up of residents and Council Members.
Mayor Pro Tern Curry reported that he and Council Member Gardner attended the Corona del Mar
Residents Association Preparedness Expo on August 19. He also commended the City Arts
Commission for another successful summer of concerts, and indicated that he attended the Pretend
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City Council Minutes
September 8, 2009
City Children's Museum grand opening in Irvine, a hearing on California's fiscal future, and USC's
opening football game.
MI. CONSENT CALENDAR
A.
1. MINUTES OF THE REGULAR MEETING AND OURNED REGULAR
MEETING OF AUGUST 11, 2009, AND THE ECIAL MEETING OF
AUGUST 18, 2009. [100 -20091 Waive reading ub'ect minutes, approve as
written and order filed. [Council Member rd nd Council Member
Daigle abstained on this item]
2. READING OF ORDINANCES AND R LUTIONS. Wai ading in full of
all ordinances and resolutions under c ide tion, and direct C lerk to read
by title only.
B. ORDINANCE FOR ADOPTION
C.
I�
S. TRANSIENT OCCUPANCY T (TOT)LVISITOR SERVICE FEE
ORDINANCE UPDATE RE: THE P ENT OF TAX AND FEES PRIOR
TO SEEKING JUDIC REVIEW. [IO 9J Adopt Ordinance No. 2009 -17
amending Chapters 3. 3.28 of the Newp Beach Municipal Code relating
to the payment of Un r t Occupa Taxes (UTOTs) and Visitor
Service Fees (VSFs) prior seeking l ew.
4. CHANG O NBMC 11N ON PUBLIC BEACHES
PROH ) AND MC 11.08.020 (USE OF CONCEALING
UM LL PROHIBITE . [100 -2009] Introduce Ordinance No. 2009.18
ding S ions 11.08.0 10 Na 11.08A20 of Chapter 11.08, City of the Newport
B Mu ' Code, to fur r regulate the use of shade coverings on ocean
beach a ands, and pass to second reading on September 22,
F OR CE AMENDMENTS TO CODIFY FILM LIAISON
P N, RETIRE PERMITS FOR COMMERCIAL FILMING AT
PRIVA RES ENTIAL PROPERTY, AND AMENDING APPEAL
PROVI ONS. [100 -2009] Introduce Ordinance No. 2009 -19 updating Chapter
5.46, re Mating commercial film production, and pass to second reading on
Septem r 22, 2009_
C ACT AND AGREEMENTS
6. LE CORONA RESTROOM REHABILITATION - COMPLETION AND
CEPTANCE (C- 3918). [381100 -2009] a) Accept the completed work; b)
authorize the City Clerk to file a Notice of Completion; c) authorize 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 d)
release the Faithful Performance Bond one year after Council acceptance.
7. MESA -BIRCH PARK - COMPLETION AND ACCEPTANCE OF CONTRACT
(C- 3787). [381100 -20091 a) Accept the completed work; b) authorize the City
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September 8, 2009
Clerk to file a Notice of Completion; c) authorize 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 d) release
the Faithful Performance Bond one year after Council acceptance.
8. APPROVAL OF AMENDMENT NO. 3 TO PROFES - ONAL SERVICES
AGREEMENT WITH DOTY BROS. CONSTRUCTIO COMPANY (C- 3881),
APPROVAL OF AMENDMENT NO. 3 WITH GC ONSTRUCTION, INC.
(C- 3882), AND APPROVAL OF AMENDMENT O. 2 WITH VALVERDE
CONSTRUCTION, INC. (C -3994) FOR L UNDERGROUND
UTILITY REPAIRS. [38.1100 -20091 a) rove endment No. 3 to
9. REIMBURSEMENT AGREEMENT WI OAG MEMORIAL HOSPITAL
PRESBYTERIAN FO PERIOR AVE MEDIAN IMPROVEMENTS
(C- 2912). [381100 -20 rove the lic Improvement Funding
Reimbursement Agreem t with orial ospital Presbyterian for the
Superior Avenue Median mprove ; a ) approve a budget amendment
(10BA -010) to appropriate 2,80 4 from the General Fund reserve account to
reimburse Hoag for the Ci 's n• share cost for the Superior Avenue median
extension.
10. ENE Y FICIENT S EETLIGHT IMPROVEMENT PROJECT -
AP OVAL OF PROFE IONAL SERVICES AGREEMENT WITH
AN INEERING R DESIGN SERVICES (C-4375). [381100-
20091 1 Services Agreement with Willdan Engineering of
Anaheim, lifornia, for design services at a not -to -exceed fee of $71,755.00, and
ize t yor and City Clerk to execute the Agreement.
1. APP AL O NDMENT NO. 1 TO PROFESSIONAL SERVICES
AGRE ENT TH POUK & STEINLE, INC. FOR ON -CALL
ELECT CAL SERVICES (C-4052). [381100 -20091 Approve Amendment No. 1
to Profe ional Services Agreement with Pouk & Steinle, Inc. for on-call electrical
a services nd authorize the Mayor and City Clerk to execute the amendment.
Professional Services Agreement with Dot others Co action Company for
on-call underground utility repair servic and authorize ayor and City
Clerk to execute the amendment; b) a ove Amendment No. Professional
Services Agreement with GCI Constr lion c. for on -call unde and utility
repair services and authorize t Ma and City Clerk to xecute the
amendment; and c) approve Ame ent o. 2 to Professional Services Agreement
with Valverde Construction, Inc. -call underground utili
ty repair services,
and authorize the Mayor and City Cle execute the amendment.
ACCEPTANCE OF THE 2008 URBAN AREAS SECURITY INITIATIVE
GRANT TRANSFER ALLOCATION (C- 3746). 1381100 -20091 a)
t the 2008 UASI Grant Fund Training Allocation in the amount of
$ ,358.17 to be utilized for reimbursement training costs associated with
approved Department of Homeland Security (DHS) courses for emergency
response personnel; and b) approve a budget amendment (10BA -009) increasing
revenue estimates by $49;358.17 in 1820.486A, UASI Grant, and increasing
expenditure appropriations by $49,358.17 in 70.14- C8002016.
13. PENINSULA POINT WATER AND SEWER IMPROVEMENTS -AWARD OF
CONTRACT (C- 4066). [381100 -20091 a) Approve the project plans and
specifications; b) award the contract (C -4066) to Paulus Engineering, Inc. for the
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September 8, 2009
Total Bid Price of $1,415,079, and authorize the Mayor and the City Clerk to
execute the contract; and c) establish an amount of $141,000 to cover the cost of
unforeseen work.
15. NEWPORT BEACH CIVIC CENTER PROJECT APPROVAL OF
AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT WITH
LEIGHTON CONSULTING, INC. FOR GEOTECH CAL SERVICES (C-
4150). [381100 -20091 Approve Amendment No. 3 kr rofessional Services
Agreement with Leighton Consulting, Inc., of I�r lifornia, to provide
supplemental geotechnical exploration and cons rSs at a not to exce ed
price of $99,640, and authorize the Mayor nd erk to execute the
agreement.
16. JUSTICE ASSISTANCE GRANT (C-4 ). [381100 -20091 ve Agreement
to transfer funds for Fiscal Year 20 , Jtice Assistance Gr(JAG), and
authorize the City Manager to execu the 4fiFeement.
E. MISCELLANEOUS
17. RESPONSE TO GRAND JURY O PAPER WATER -DOES ORANGE
COUNTY HAVE A RELIABLE FUTU [100.2009) Approve the response
letter to the Grand J report on 'Paper r - Does Orange County Have a
Reliable Future7' and the Mayor to it the report to the Presiding
Judge of the Superior Co t piu enal Co 33.05 (a) and (b).
18. UNSCHEDULED VACA CY ON E B ING AND FIRE BOARD OF
APPEALS. [100 -20091 C irm a nominations of William Dildine and Stephen
Sandland as presented by t Ad Hoc Appointments Committee to fill the
unsched cancy on the ding and Fire Board of Appeals as a result of the
resign ono aul Larry Roo
19. R SIGN F TWO -HOUR RKING LIMIT ON A PORTION OF SNUG
R 0- a) Adopt Resolution No. 2009 -62 limiting the
par c es on streets to two hours and rescinding Resolution No.
1 -88; b) introduce Ordinance No. 2009 -63 approving revisions to the
ntial ing Zone "2 ". - Newport Heights and Cliff Haven, and pass to
secon ading eptember 22, 2009.
b Ma or Pr Tem Cu rv, seconded by Council Member Webb to approve the
Calendar, exce for the Item removed (14); and noting the abstention to Item 1 by
Member Gardne and Council Member Daigle.
The mote rried by a following roll call vote:
Ayes: Counc E e er Henn, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb,
Council her Gardner, Council Member Daigle
Absent: Council ember Rosansky
)III. ITEMS REMOVED FROM THE CONSENT CALENDAR
14. NEWPORT BEACH CIVIC CENTER PROJECT - APPROVAL OF AMENDMENT
NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH RBF CONSULTING
FOR TRAFFIC ENGINEERING SERVICES (C- 3067). 1381100 -20091
Public Works Director Badum reviewed the contract and project. He noted that the project
addresses the immediate traffic issues, but does not include more creative traffic
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City Council Minutes
September 8, 2009
circulation improvements.
Motion by. Council Member. We seconded by Maxpr P_Tem Curry to approve
Amendment No. 1 to the Professional Services Agreement with RBF Consulting, of Irvine,
California, to provide supplemental traffic engineering services at a of to exceed price of
$217,790, and authorize the Mayor and City Clerk to execute the ag went.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Mayor Pro Tem Curry, r Selich, Council Member
Webb, Council Member Gardner, Council Membe ai '
Absent: Council Member Rosansky
XIV. ORAL REPORTS FROM CITY COUNCIL ON COMMI EE ACTIVITIES
Council Member Daigle reported that she will be attague of Californi ities (LCC)
Annual Conference in San Jose next week, review utions she will be casting votes
on behalf of the City, and explained why the City oth resolutions.
XV. PUBLIC HEARINGS
20. ANNUAL REVIEW OF FLETCHER JELOPMENT AGREEMENT
(PA2009 -052) (C- 3067). [38/1 91
Assistant Planner Nueno provi d a
Motorcars has met the two con ti s f
addressing lighting issues.
In response to Idicate questions, As
development a t was started
Lepo reports sistant City M
letter whic that the dealers
trail.
Mayor Selich o~ the public
7ntPIanMner and medicated that Fletcher Jones to xtending Bayview Drive and
Nueno indicated that a review of the
2004 but was not completed. Planning Director
ager Wood will be responding to the August 10
p painted the road and hindered entrance to the
cD tt, rep nting Fletcher Jones Motorcars, stated that they have completed
" ll the requir nts of development agreement. She indicated that Fletcher Jones
Motorcars belie a they ve not restricted access to the trail; however, they have
scheduled a mee a with area residents to address the issue.
earing no fart r testimony, Mayor Selich closed the public hearing.
n b M or Pra Tem C rr seconded b Council Memb r Dai le to find that
Fletc one otorears is in good faith compliance with Development Agreement No. 9.
The motio arried by the following roll call vote:
Ayes: Council Member Henn, Mayor Pro Tern Curry, Mayor Selich, Council Member
Webb, Council Member Gardner, Council Member Daigle
Absent: Council Member Rosansky
21. COST RECOVERY ORDINANCE - CHAPTER 3.36, FEE RESOLUTION AND
MASTER FEE SCHEDULE. [100 -20091
Revenue Manager Everroad provided a staff report and stated that this reflects the
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City Council Minutes
September 8, 2009
XVI.
XVII.
XVIII.
phasing -in of fees, cost of living adjustment, updates to fees, and the inclusion of fees that
were not in the previous master fee schedule. He reported that the cost recovery ordinance
adds a 50% recovery of costs for juvenile substance abuse programs.
In response to Council questions, Revenue Manager Everroad confir ed that the City is
now outsourcing dog licenses and that the problems faced durin a transition period
have been rectified. Following discussion relative to the buIdi permit cost for solar
panels, it was the consensus of Council that the City's fee is not easonable.
Mayor Selich opened the public hearing. Hearing no
hearing.
Motion bx Council Member xardngr. sec
introduce Cost Recovery Ordinance No. 2009 -
the Newport Beach Municipal Code, and pass
and b) adopt Resolution No. 2009 -63 with Mafe
The motion carried by the following roll
he closed the public
Council ber_Webb to a)
ng Exhibit A apter 3.36 of
reading on Septe ' r 22, 2009;
Ayes: Council Member Henn, Mayor Pro '1f Curry, Mayor Selich, Council Member
Webb, Council Member Gardner, Council her Daigle
Absent: Council Member Rosansky
PUBLIC COMMENTS
Irene Umipig, Community Service Pro€
their Prescription and Over- the - Counter
22. PLANNING
Planning ]
Moriarty '.
Heliotrope
Balboa
a handout and discussed
Project.
FOR AUGUST 20, 2009. [100 -2009)
on the following Planning Commission items:
Port Restaurant and Bar (PA2009 -080) - 440
el/Seina Restaurant (PA2008 -197) - 105 Main
CITY COUNCW ACCEPTANCE OF THE FINAL REPORT FROM ICMA
CONSULTANT REGARDING THE ESTABLISHMENT OF PERFORMANCE
MEASURES AM BENCHMARKS, IN ORDER TO CONTINUOUSLY IMPROVE AS
j,ORGANI ION (C- 4012). /381100 -20091
Cray pp, I discussed the work that the City has put into establishing over 100
perform easures and 34 benchmarka, and noted that no other city has taken on this
size of s as a starting point. He stated that the information can assist the City in
better un erstanding the organization, seeing how it compares to other agencies, and
beginning the process of asking questions about the organization and its services so it can
continuously improve. He stated that ICMA will be providing the City with a curriculum
to train new employees, managers, and Council Members. He noted that Pages 37 and 38
include ICMA observations and recommendations and pointed out that it will probably
take years before the City is immersed in the process and able to determine whether the
benchmarks and.performance measures need refusing or abandoning, or if new ones should
be added.
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September 8, 2009
Mayor Pro Tem Curry commended the consultants and staff for all their work, expressed
the importance of measuring and comparing performance, and noted that the
benchmarking process was reviewed by the Finance Committee. He recommended that
the new City Manager, Dave Kiff, evaluate the data, determine how he wants to use the
data to structure his management approach, and come back to Counl with a plan for the
future.
Council Member Daigle commended the Finance Committee an taff, and emphasized the
importance of measuring performance, holding governmen ccountable, and providing
equal treatment to all citizens. She expressed suppo ayor Pro Tem Curry's
recommendation. She noted that conducting audits in t future also discussed by the
Finance Committee. 9
In response to Council Member Henn's questions rr Rapp indicateNte plan check
process that the City established works for t s or zation and oped using
customer input, but noted that this benc ark rently has nable data.
Regarding Human Resources expendit per time employee (FTE), he confirmed
that the cost does not include health and osts.
Council Member Henn also commended City Ma r Bludau and staff for the work done.
He agreed with Mayor Pro Tem Curry's recommen n, and suggested that the new City
Manager also Como back with onse to each rec endation and describe the next
phase of the benchmarking pro ewed some i plea of how the information
could be utilized and evaluated in niunc a citizen urvev.
Motion by Mayor Pro Tem Curl) see ed b Council Member Daigle to accept
the report and have the new City na Dave Kiff, evaluate the data, determine how
he wants to use t to to strudu s management approach, come back to Council
with a plan for e, respond t ach ICMA recommendation, and describe the next
phase of the b chm ng project.
The motio cried b the following roll ll vote:
Ayes: Coun ' ber arm, Pro Tem Curry, Mayor Selich, Council Member
b, Co Member Gardner, Council Member Daigle
24._4P SALE OF BONW FOR AVESSMENT DISTRICT NO.103. [100 -2009)
Finance Officer an Matusiewicz provided a staff report, noted that over 43% of the
property owner have paid the assessment in full, explained the purpose of the two
roposed resolu ns, discussed the timeline, and highlighted the proposed rates provided
b e underw rs. He reported that the public can purchase the bonds by contacting
Mile nick at 323 - 658 -44.11 and that an ad will be published in the Daily Pilot. He
confirm the rates are good, orders are probably already in place, and the blended
average r is about 4.3 %. Council Member Henn pointed out that the blended average
rate is expected to be below the anticipated 5% to 5.5% rate, construction costs have
declined, and this project has been well timed and executed.
Motion b to a) adopt
Change Proceedings Resolution No. 2009 -64 which 1) reduces the assessment to reflect the
deletion of capitalized interest and 2) determines the remaining unpaid assessments; and
b) adopt Bond Issuance Resolution No. 2009.65 which 1) authorizes the sale of 1915 Act
Assessment bonds not to exceed $3,429,200 for Assessment District No. 103, 2) authorizes
the execution and delivery of an indenture in substantially the form presented, 3) approves
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September 8, 2009
the form of a Preliminary Official Statement and authorizes the execution and delivery of
a final Official Statement, 4) authorizes the execution and delivery of a Disclosure
Dissemination Agent Agreement in substantially the form presented, 5) authorizes the
execution and delivery of a Bond Purchase Contract in substantially the form presented,
and 6) authorizes staff to take the necessary steps to provide for the sale and issuance of
the bonds. 7
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Mayor Pro Tern Curry, Selich, Council Member
Webb, Council Member Gardner, Council Memaig
Absent: Council Member Rosansky
25. WATER UTILITY FINANCIAL PLAN ZANDER RATE INC ES. (391100-
2009) Utilities Director Murdoch provided the and noted that the proposed notice
was included with the staff report.
Paul Matthews, Red Oak Consulting, utilized
how much water rates will be increasing, rainfa
more dependent on imported w r. He explained i
increase, the projected rates fo sed water,
the current financial outlook, th a nl
plan and rates. He discussed how typical si
provided a regional comparison of ater b' , in
water rates.
+erPoint presentation and reported on
s declined, and cities are becoming
h asoning behind the proposed rate
the ected operating expenditures,
object s, and the proposed financial
water bill may impacted and
i i the City's current and proposed
In response to Ishare questions, M atthews discussed the meter charge equivalency
ratio comparis mphasized the ' portance of having large meter users pay their
equal pro r m He expl ained y water delivery costs can vary and show up
differently water ills, including th some agencies use property tax or investment
Money to pa me o .
Counc' tuber er requested that the notice point out which rates could pertain to
r n us co rcial locations, depending on water meter size.
Council Me b — no that the timing of the borrowing mechanism to fund capital
needs has been tructure so a loan is no longer necessary and that this is a change from
what was initi y proposed to the Finance Committee. Utilities Director Murdoch
explained that t , y ran two financing models and realized that by utilizing cash financing,
e fixed fee ma initially be higher, but will be $.30 lower at the end of five years without
a _ ine the tinifiline.
Council er Henn commended Utilities Director Murdoch and the consultants. He
recommen d that the City establish a reserve policy for the water enterprise and
wastewater fund that addresses how the City establishes target reserves, the timeline for
the reserves, and how to maintain them. He indicated that this should probably be
reviewed by the Finance Committee first. Finance Officer Matusiewicz noted that the staff
report includes a recommendation for a policy but noted that, with the capital side, it is
difficult to create a policy without a criticality assessment.
Mayor Pro Tem Curry commended staff and the consultants, and emphasized the
importance of replacing the water structure.
Volume 59 - Page 262
City of Newport Beach
City Council Minutes
September 8, 2009
10
0
Motion_, y_ Council Member Gardners seconded.hy. Cgunc_il l9Iember Webb to a)
approve the Water Utility Financial Plan; b) set the public hearing on water rate increase
for November 10, 2009; and c) direct staff to send rate increase notices as required by
Proposition 218 with the rates proposed in the Financial Plan.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Mayor Pro Tem Curry, May Selich, Council Member
Webb, Council Member Gardner, Council Member 5y
e
Absent: Council Member Rosansky�
MOTION FOR RECONSIDERATION - None
ADJOURNMENT - 8:49 p.m.
The agenda for the Regular Meeting was
City Hall Bulletin Board located outside
Building,
Volume 59 - Page 263
Ember 8, 2009, at
Newport Beach
on the