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HomeMy WebLinkAbout01 - MinutesJuly 14, 2015 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Special Meeting June 16, 2015 I. ROLL CALL - 5:00 p.m. II. Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Flag Salute - Council Member Muldoon 1. Mooring Permits, Rent and Other Provisions: Harbor Commission Recommendations Harbor Resources Supervisor Levin presented a PowerPoint presentation which included a brief history of mooring rates, changes adopted in 2010, mooring permit rent requirements, options for consideration, and transferability. Harbor Commission Chairman Avery addressed the Commission's review process and addressed public meetings, historical practices in terms of transferability and allowing people to build equity, loss of equity, lack of alternative methods regarding rent and transferability, difficulties in terms of comparisons with other harbors, the focus of the Harbor Commission's efforts, and Harbor Commission recommendations. Additionally, he provided information regarding fiscal impacts and revenue adjustments. Recommendations were also presented in terms of mooring transfers, transfer fees, single name/permittee per mooring, centralized posting, the transfer fee between family or a trust, maximum mooring permits allowed, short - and long-term mooring sub -rentals, rental fee for short-term and long-term sub -rentals, billing frequency, eliminating the wait list, mooring revocation, and proof of insurance. He discussed the next steps and thanked staff for their help. Council Member Curry thanked Chairman Avery and the Commission for their work, noting that the Commission was short-handed since several Commissioners have moorings and recused themselves from considering the item. He reported that the proposed changes reduce Tidelands revenues by approximately $1 million and asked for Commissioner Avery's opinion regarding which projects the City could obtain savings. Council Member Muldoon stated that is a topic for staff to address, not Chairman Avery. Council Member Curry indicated that, since the Harbor Commission oversees the Harbor, he would like the Commission's opinion in terms of what projects should be cut if Council recommends the proposed changes. Chairman Avery stated that the City's needs for infrastructure improvements should not be related to what is a fair price and delivering fairness to mooring permitees. He added that rents are higher in Newport Beach than anywhere else. Council Member Muldoon expressed appreciation to the Harbor Commission for their time and effort in addressing this matter. Chairman Avery assured that no Commissioner who reviewed this issue is a mooring holder at the time it was acted upon. Volume 62 - Page 352 City of Newport Beach Special Meeting June 16, 2015 In response to Council Member Peotter's question, Harbor Resources Manager Miller estimated that four to six transfers occur each year and addressed the potential revenue from the transfers. Council Member Peotter asked regarding the recommendation to allow one transfer per year and Chairman Avery noted that a few people have profited from the buying and selling of moorings and that the recommendation was intended to discourage that practice. Discussion followed regarding the number of names required on a mooring permit, the public auction process, and developing a formula for pricing moorings for sale. In response to Mayor Pro Tem Dixon's question, Chairman Avery addressed Consumer Price Index (CPI) methodology used to develop the rate. He added that CPI is commonly used in municipalities to develop these types of rates. He reported that the Harbor Commission is open to new ideas. Discussion followed regarding results of comparison studies, use of formulas to develop rates, and the services provided by different cities. Chairman Avery reported that Newport Beach does not provide the services that demand a higher rent, such as parking and dinghy racks. Additionally, there are no dedicated docks for boaters to wash down. He stated that the Harbor Commission will review the possibility of providing additional services for mooring permitees in the future and then consider the possibility of increasing rents. He believed that increasing rates may be acceptable if more services were provided and that $55 per foot is too high a rate. Patricia Newton, Newport Mooring Association (NMA), thanked the Harbor Commission and Council, and provided a PowerPoint presentation, noting support for the Harbor Commission's recommendations. She addressed the methodology for their proposed recommendations, the need to preserve the market drive process, and the desire to set the transfer fee at 100% of the proposed annual fee since it would increase revenue for the Tidelands fund and guarantee the fee when moorings are transferred with the sale of a vessel. She indicated that NMA's measure for annual fees include Tidelands valuation, the CPI, and comparable moorings. She noted that the three measures are approved by the State Lands Commission as valid measures for determining fees. Ms. Newton reported that their suggested rate is $25 per lineal foot. She further addressed the Beacon Bay Bill, current rates, permit transfers, public benefit, the impacts of the Harbor Commission's recommendations, accounting for Tidelands, budget consistency, the CIP funding history, and NMA recommendations. Brief discussion followed regarding Marina Park. Thomas O'Keefe referenced Proposition 218 and applicable legal cases relative to the setting of mooring fees. He emphasized the requirement to conduct a study to show increased service costs as justification for increasing fees. Don Beatty provided a brief history of mooring fee increases in the City. He indicated that charging $25 per lineal foot is acceptable and suggested leaving this fee in place for at least five years. He noted that he has never seen a report relative to the amount of revenues or expenses associated with Tidelands sources. He commended the Harbor Commission for listening to residents and asked Council to do the same. Denise Petersen spoke in opposition to increasing mooring fees and hoped that Council will consider the Harbor Commission's recommendations and allow transferability. Volume 62 - Page 353 City of Newport Beach Special Meeting June 16, 2015 Mike Henn expressed appreciation for the Harbor Commission's work, but spoke in opposition to their recommendations. He stated that the City has a fiduciary requirement to charge fair market value for use of public tidelands. He indicated that Council's 2010 action clearly establishes a fair market value relationship to the only market-driven numbers in the Harbor (slip rents). He added that the requirement for market rates also precludes any scheme whereby private parties benefit from the transfer of a public permit, noting that this could be the potential gifting of public funds. Mr. Henn stressed that Newport Beach has higher valuations and that mooring rates of $55 per lineal foot may not be actual market value. He commented on the Harbor Commission's scope of responsibility, adding that Council's scope is much broader, especially since Council needs to take into account the budgetary impacts of its decisions and must represent the interests of all residents. He urged Council not to reauthorize the private sale of mooring permits or to decrease the mooring fees to $25 per lineal foot unless Council can show that anything over that is above fair market value. He stated that the only way to do so is to have an independent agency or qualified private professional appraiser do a full appraisal. Dan Gribble spoke in favor of the Harbor Commission's and the NMA's recommendations. He noted that Council also represents the people directly affected by this decision, the mooring holders. He referenced a letter sent to Council and highlighted the issue of fairness and integrity. He expressed the opinion that moorings are owned by private individuals, although the permit is a lease. He addressed the proposed rates and believed that dock holders receive a better deal than mooring holders. He urged Council to adopt the recommendations of the Harbor Commission. Mike Glenn referenced the Beacon Bay Bill and disagreed with Mr. Henn's comments. He addressed the Tidelands Grant and believed that this is a fee that requires a fee study before any increase can take place. He suggested conducting a fee study to determine what is fair. Don Potenza commented on how changes to mooring fees have impacted him and his father. He addressed moorings versus docks and believed that the fees should be comparable to each other. He asked that Council consider the transferability of moorings and that fees become more reasonable. Elaine Linhoff indicated that mooring holders should not have to bare the bulk of the Tidelands budget. She added that the Harbor Commission has done exhaustive research, collected a lot of input, and developed reasonable recommendations. She urged Council to approve their recommendations. Cathy Wolcott, former City employee, spoke in support of the Harbor Commission's recommendations. She noted that mooring rates should be compared to other cities' mooring rates rather than to slips. She compared Newport Beach fees with Shelter Island fees, and noted that Shelter Island maintains the moorings and provides 24-hour access to the boats. Scott Karlin commented on the Beacon Bay Bill and the 1919 Tidelands Grant. He addressed the methodology used by the Harbor Commission and believed that their recommendations are fair and reasonable. He addressed the comparative approach, adjustments made, and referenced an article he wrote, and presented it to the City Council. Paul Bahan spoke in support of the Harbor Commission's recommendations. He noted that, if someone can afford a slip in Newport Beach, they can have one. Additionally, he reported differences in service between Newport Beach and other cities, and stressed that yachting should not be synonymous with wealth and that, at the current rates, the City is forcing the middle class out of boating in Newport Beach. Volume 62 - Page 354 City of Newport Beach Special Meeting June 16, 2015 Randy Timmons commented on his and his brother's experience with moorings in the City and noted that current fees are hurting him since he is on a fixed income. Gary Pickett, Ardell Marina, expressed the opinion that Mike Henn's statements are based on two flawed appraisals that used incorrect assumptions with regard to occupancy and slip rates, and used market comparisons of other leases that should not be used. He reported that there is no economic analysis in the appraisal and referenced another appraisal done in 2001 by George Jones. He urged Council to look at that 2001 appraisal and thanked Council for reconsidering this matter. John Panek spoke in favor of the Harbor Commission's recommendations, adding that he would Eke to see rates consistent with what residents with beach moorings are paying. He added that slip rates are not comparable as they have many amenities that moorings will never have. Cindy Bowman spoke in support of the Harbor Commission's recommendations. She suggested allowing a primary and secondary contact on the permit and providing each mooring holder with a parking permit. Brian Ouzounian spoke in support of the Harbor Commission's recommendations, but in opposition to the NMA's recommendation relative to the fee. He asked that Council charge $0.50 per square foot of the shadow of the vessel, not the mooring field, and add $2.00 per foot for the stern line to each mooring can. He addressed differences between moorings and docks. A member of the public spoke in support of the Harbor Commission's recommendations. Council Member Curry referenced a letter from the States Lands Commission which asked that Council delay this action since the State Lands Commission would like to know how the proposed mooring rates relate to the value of the property and whether those rates reflect fair market rent. They also requested more information about potential sale of moorings. He commented on the risk that the State Lands Commission could take over jurisdiction and impose its own conditions. City Manager Kiff stated that he reviewed the letter and respects what they have to say. He provided options for Council to consider and noted that Council may take action on this matter at this time. In response to Council Member Muldoon's question, City Manager Kiff indicated that neither he nor anyone working for the City contacted the State Lands Commission about this matter. In response to Council Member Muldoon's questions, Assistant City Attorney Torres noted that he received a call from the State Lands Commission's staff informing him that the City would be receiving a letter from them. Staff indicated that they would like a chance to speak with City representatives regarding this matter before a final decision was made by the City Council. He added that they acknowledged that, if Council acted on this matter today, they would have the opportunity to speak with City staff prior to final action. Additionally, he stated that setting rates would be at the discretion of the City Council, as long as it was in accordance to fair market value and the findings of an appraiser. He added that there is no indication that the State Lands Commission will be taking away the City's jurisdiction over the Tidelands; however, there is a provision within the Beacon Bay Bill dictating the process for doing so. Assistant City Attorney Torres addressed requirements for an appraisal. Volume 62 - Page 355 City of Newport Beach Special Meeting June 16, 2015 Mayor Pro Tem Dixon noted that she has no objection to the State Lands Commission discussing this matter with City staff. Assistant City Attorney Torres reported that the City has a great relationship with the State Lands Commission. He indicated that they recognize it is within City Council's discretion to set the rates and want to determine what assistance they can provide. He stated that, if the City Council wanted to move forward at this time, the State Lands Commission recognizes that the City can do so, but they want to participate as the process moves forward. In response to Mayor Pro Tem Dixon's question, City Manager Kiff stated that City staff consulted with the State Lands Commission when this matter was previously considered by Council. He added that mooring rates are currently the highest amount since the commercial pier fees have not yet occurred. He added that it is fourth in terms of revenue sources and reported that the State Lands Commission approved the Balboa Bay Resort's lease. He addressed Beacon Bay residents. Mayor Pro Tem Dixon noted that there are other sources of revenue going into the Tidelands Operating and Capital Funds and believed that the moorings' share of that is disproportionate. She added that none of the fees should be unfairly eneWmines of providing revenues to the Tidelands Capital Fund. Council Member Duffield commented on the State Lands Commission letter, and addressed the location of mooring fields, the lack of parking, the difficulty for people to get to the boats, the lack of dinghies and amenities, and spoke in support of the Harbor Commission's recommendations. He added that there is no need to replace any public dock float or gangway listed in the CIP and, therefore, would save the City almost $800,000. Council Member Curry reported that there was a 20 -year period where Council did not adjust mooring fees and that the City does not set fees based on the CIP, but rather on an established methodology. He suggested showing an appropriate transfer fee reflecting the value of the mooring and setting the mooring fee between $35 and $40 per lineal foot. Council Muldoon suggested finding a balance point for the fees. Motion by Council Member Muldoon, seconded by Council Member Petros, to a) receive and file the Harbor Commission's recommendations on suggested modifications to the current Mooring Permit policy and fee structure as requested by City Council; and b) direct staff to accept Harbor Commission Recommendation Items 1 to 13, using $35 per lineal foot, allow the transfer amount to be 10% of the value of the mooring sale, and bring back an enactment resolution at a future City Council meeting. Council Member Peotter commented on the Beacon Bay Bill and referenced a conversation he had with Assemblyman Harper in which he wanted to let Council know that he was in support of the Harbor Commission's recommendations and offered to help with respect to the State Lands Commission. He noted that moorings are also used by non-residents. He suggested an amendment to the Harbor Commission recommendation to allow unlimited annual mooring transfers, remove the limitation of only one person on a mooring permit, and restrict exempt familial transfers to "direct family." Council Member Duffield noted the importance of sending a message that the City does not want to let people profit from such transactions and suggested maintaining the Harbor Commission's recommendations. Volume 62 - Page 356 City of Newport Beach Special Meeting June 16, 2015 Mayor Pro Tem Dixon proposed an amendment to look at the CPI or use the State Lands Commission's five-year benchmark appraisal of commercial and mooring rates in Newport Harbor. It was noted that staff may need to resolve the matter with the State Lands Commission. Council Member Muldoon accepted Mayor Pro Tem Dixon's amendment, accepted having two names on the mooring permit when appropriate, and accepted changing Item 6 to "direct family." Council Member Petros accepted the amendments which included a $35 lineal foot charge, a 10% transaction charge on mooring transfers and to include either the CPI or the State Lands Commission's five-year appraisal, allowing two names on the permit, and limiting exempt familial transfers to "direct family." Council Member Curry expressed support for the amended motion. Mayor Pro Tem Dixon recommended indicating a primary and secondary point of contact. Council Member Petros expressed appreciation for the Harbor Commission's work. Mayor Selich expressed support, although he is not comfortable with all of the components. The amended motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Mayor Selich recessed the meeting at 7:06 p.m. and reconvened the meeting at 7:17 p.m. with all members of the City Council in attendance. 2. Civic Center Audit City Manager Kiff referenced the staff report and offered to respond to questions from Council. Mike Glenn expressed concerns with the limited scope of the audit and believed the City should conduct a forensic audit. He addressed costs and expressed the opinion that the proposal is not what residents want. He noted that a former Assistant City Manager is currently under investigation by the District Attorney and stated that there is a need for something deeper and more substantial. Dana Roberts, C.W. Driver, offered his company's complete cooperation should the City decide to conduct an audit. Mayor Pro Tem Dixon assured that this will be a professional third party review as far from politics as possible. She listed issues that she wants to see addressed with a common understanding of what went wrong and what went right. She addressed the benefits of the audit and indicated her support for this item. She added that she wants complete thoroughness and suggested that the audit be completed by March 1, 2016, or sooner. Motion by Mayor Pro Tem Dixon, seconded by Council Member Petros, to a) set forth the scope of work as proposed for a Civic Center Project close-out auditipost implementation review; b) set minimum qualifications as proposed; c) seek qualifications via a Request for Qualifications (RFQ) of firms capable of completing a post -construction review of the Newport Volume 62 - Page 357 City of Newport Beach Special Meeting June 16, 2015 Beach Civic Center; d) designate Mayor Pro Tem Dixon, Council Member Petros, and Council Member Muldoon as the audit review Working Group; e) authorize the Working Group to interview and select the audit management review firm and identify a principal construction - management auditor manager to report to the Working Group. The auditors will report to the Working Group with periodic updates of findings; iJ provide that the City Attorney's office will administer the contract that results from the RFQ; g) establish a "not to exceed" budget of $100,000 for the audit/review; and h) determine that the audit/review should be completed by March 1, 2016, and if more time is needed, it needs to be brought back to the City Council. Council Member Curry addressed the scope of work and indicated there has been plenty of discussion. He suggested doing a full construction oversight. He indicated that he would like to amend the motion to include the following: Amended motion by Council Member Curry, seconded by Council Member Peotter, to a) remove the Working Group from the process; b) ensure that the process is conducted independently of political influence; c) have the City Attorney conduct a Request for Qualifications (RFQ) process and select the audit manager and auditing firm; d) provide direction to the RFQ respondents that they are forbidden from contacting any City Council Member; e) require the City Manager and City staff to report to the public and the City Council any efforts by City Council Members to tamper with the selection process, to aid or recommend the selection of any contractor, or to influence the results of the analysis; and f) direct the audit manager to report directly to the City Council, but have the City Attorney manage the contract. Council Member Peotter liked the idea of not having a Working Group, as well as a separation of staff. He asked if Council Member Curry would consider modifying the amended motion to indicate that the City Attorney would hire the independent manager and the City Attorney would work with the independent manager to hire an auditor. He added that the independent manager would be separate and apart from the consultant firm, and would be independent. Discussion followed regarding Council selecting the independent manager. In response to Council Member Curry's question, City Manager Mff stated that he would rather not have his perspectives taint this process. He indicated that the City has competent staff that could manage the contract, under the direction of the City Attorney. Council Member Peotter stated that he would prefer an independent manager with construction experience. City Manager Kiff agreed with Council Member Peotter, but believed that someone can do an effective RFQ process to help oversee that and that the City Manager should not be making that selection. In response to Council questions, City Manager Kiff indicated that he was approached about Bill Dunlap acting as the independent manager for this audit. Council Member Curry indicated that this approach violates Council Policy A-6 and, if the motion is adopted, this matter could return to Council. Council Member Peotter stated that he accepts the amendment, adding that he wants a true, independent audit with an independent manager who has good construction experience. Council Member Curry added that this could be done within $100,000. Volume 62 - Page 358 City of Newport Beach Special Meeting June 16, 2015 Council Member Curry restated the modification to the amended motion that an independent manager shall be selected by a process organized by the City Attorney, as discussed, and this is to be done as quickly as possible. Council Member Muldoon stated that he will not support the amended motion, believing that the auditor should report to the City Council, rather than staff. Bill Dunlap noted that he has supported all of the present Council Members in their campaigns and has no political agenda in this. Council Member Curry commented positively regarding Mr. Dunlap's character and contributions to the community. Mayor Pro Tem Dixon commented on the amount of experience required and stated that she would be supportive of someone with Mr. Dunlap's experience. She added that this is a normal, good business practice and that there is nothing to be afraid of. Council Member Petros voiced support for the amended motion and believed that it is naive to believe that this is not a political move and that the more Council and staff can distance itself from this process, it would be better for transparency, honesty and integrity. Council Member Peotter clarified that the independent manager would need to report to the City Council as a whole. Council Member Curry agreed that the manager would, but that there are contract administrator issues that would be handled by the City Attorney's Office. Council Member Peotter agreed. City Attorney Harp clarified that his office would select the RFQ for the independent manager and for the auditing firm, with input from the independent manager. Mayor Selich asked for a restatement of the motion and amendment, and noted that the independent manager needs to be very careful with the City Attorney in developing the scopes of work to ensure they are specific to avoid any mission creep. Amended motion by Council Member Curry, seconded by Council Member Peotter, to a) remove the Working Group from the process; b) ensure that the process is conducted independently of political influence; c) have the City Attorney conduct a Request for Qualifications (RFQ) process and select the audit manager and, once selected, work with the audit manager to select an auditing firm; d) provide direction to the RFQ respondents that they are forbidden from contacting any City Council Member; e) require the City Manager and City staff to report to the public and the City Council any efforts by City Council Members to tamper with the selection process, to aid or recommend the selection of any contractor, or to influence the results of the analysis; and f) direct the audit manager to report directly to the City Council, but have the City Attorney manage the contract. Council Member Muldoon objected to allowing anyone in staff to oversee a project that staff ran. In response to Mayor Pro Tem Dixon's question, Council Member Muldoon believed that the only people that have a duty to the residents are Council Members. City Attorney Harp suggested that a better way to do this would be for a City Council subcommittee to put together an RFQ, select a manager as a body, and select the audit review Volume 62 - Page 359 City of Newport Beach Special Meeting June 16, 2015 firm as a body. He added that the City Council would need to conduct interviews and make selections during a Brown Act meeting. The City Council indicated that they would like to move forward with the City Attorney developing the scopes of services and selecting the manager and auditor. The amended motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Mayor Selich Noes: Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon The main motion, without the Working Group involvement in the process, carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Maya_ elich Noes: Council Member Petros L Following discussion, Council Member Petros indicated that he wanted to vote in the affirmative during the last vote and requested, without objection, to change his vote. The main motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich III. PUBLIC COMMENTS ON NON -AGENDA ITEMS - None IV. ADJOURNMENT - 7:45 p.m. The agenda for the Special Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on June 12, 2015, at 4:00 p.m. City Clerk Recording Secretary Mayor Volume 62 - Page 360 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting June 23, 2015 I. ROLL CALL - 4:30 p.m. Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Excused: Council Member Duffield II. CURRENT BUSINESS SS1. Clari£cation of Items on the Consent Calendar -None SS2. Retailer Recognition Fabiola Soto Vargas, Community Service Programs, Inc. recognized Avila's El Ranchito Mexican Restaurant (Maribel Avila) and Hornblower (Mike Smith) for their efforts in providing alcohol service training to their staff. Mayor Selich read the proclamations and presented one to each establishment representative. City Manager Kiff introduced Carol Jacobs, Interim Assistant City Manager. SS3. Fourth of July Activities Preview [100-20151 Deputy Police Chief McGill utilized a PowerPoint presentation and provided an Operations Briefing for the upcoming July 4th holiday. He discussed goals, the Safety Enhancement Zone, 2014 Police Deployment, the number of citations and arrests in 2014, Disturbance Advisory Cards (DACs), 2015 Police Deployment, changes for 2015, and where to obtain additional information. Council Member Petros commented on how non-residents determine the amount of Police needed and, in response to his question, Deputy Chief McGill addressed fireworks enforcement teams and the use of additional Police resources. He added that there are key spots in the City that must be monitored. Council Member Petros assured that the community should be aware that the Peninsula does require a significant amount of attention, but not at the expense of the balance of the City. Council Member Curry thanked Chief Johnson and Deputy Chief McGill for their efforts and commented on the great things that can be accomplished when the City and the community work together. At his request, Deputy Chief McGill addressed illegal fireworks and challenges related to the consumption of alcohol. In response to Mayor Pro Tem Dixon's question, Deputy Chief McGill addressed traffic and parking. Deputy Recreation and Senior Services Director Sean Levin utilized a PowerPoint presentation and invited the community to the Fourth of July is for Families event, introduced members of the 2015 event Planning Committee, and distributed t -shirts to Volume 62 - Page 361 City of Newport Beach Study Session and Regular Meeting June 23, 2015 each Council Member. He also discussed the 43rd Annual Mariners Park Independence Day Parade and Celebration. Mayor Pro Tem Dixon thanked the Committee for its hard work and efforts. III. PUBLIC COMMENTS - None City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION - 5:04 p.m. A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager, Terri Cassidy, Deputy City Manager and Jonathan Holtzman, Labor Negotiator; Negotiators. Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Lifeguard Management Association (NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Employee Association (NBPTEA); and Part -Time Employee Association of Newport Beach (PTEANB). B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Government Code § 54956.9(d)(2) and (e)(1)): 1 matter C. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code § 54956.9(d)(1)): 1 matter Friends of the Fire Rings u. South Coast Air Quality Management District, et al. Orange County Superior Court Case No. 30-2013-00690328-CU-WM-CXC D. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION—INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): 1 matter V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Excused: Council Member Duffield VIII. CLOSED SESSION REPORT City Attorney Harp announced that the City and the Friends of the Fire Rings have reached a tentative settlement agreement conditioned upon Council authorizing City staff to implement Fire Ring Plan 17, which was approved by the California Coastal Commission on June 11, 2015. He Volume 62 - Page 362 City of Newport Beach Study Session and Regular Meeting June 23, 2015 noted that this item will be considered by the City Council tonight. If Council decides to go forward, he reported that the Friends of the Fire Rings will execute a settlement agreement which will be available once fully executed. He announced that Council voted 5-1 in favor of the settlement, noting Council Member Duffield's absence and the no vote by Council Member Curry. IX. PLEDGE OF ALLEGIANCE - Council Member Curry X. INVOCATION - Pastor Rick Myers, Calvary Chapel San Juan Capistrano XI. NOTICE TO THE PUBLIC XII. ANNOUNCEMENTS AND MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA Council Member Petros reported that, on June 18, the Air Quality Management District (AQMD) held an open house regarding Hixson Industries which has received repeated violations regarding the emission of Hexavalent Chromium, a known carcinogen. He added that he and Community Development Director Brandt attended the meeting and encouraged residents who have questions to contact him or Community Development Director Brandt. Mayor Pro Tem Dixon reported that the Junior Lifeguard Program started today and encouraged residents to keep an eye out for participants since most of them will be biking to the program. She also announced upcoming Shakespeare by the Sea events, hosted by the City Arts Commission. Mayor Pro Tem Dixon commented on communications she has received asking for the preservation of the St. James the Great Episcopal Church. She addressed applicable provisions in the General Plan and noted her support relative to maintaining the current land use. She expressed her appreciation for the diversity of faiths in the community. Council Member Muldoon expressed concurrence with Mayor Pro Tem Dixon's statements and expressed support for the St. James the Great Episcopal Church and its current zoning. Council Member Curry reported attending the recent Employee Recognition Lunch and acknowledged City staff. Regarding St. James the Great Episcopal Church, he expressed concerns regarding the lack of facilities and zoning for churches in the City. He added that he will carefully consider how to protect those areas in the community that are set aside for sacred spaces and commented negatively on how the Bishop handled this matter. Mayor Seheh reported on a meeting of the Coastal Commission which met in Council Chambers June 10 through June 12, addressed matters considered by the Coastal Commission, and thanked staff for their work on a video presentation during the meeting. Additionally, he reported attending the Little Balboa Island Homeowners Association meeting on June 13 and the City Arts Commission Art Exhibition. He announced that he attended the Employee Appreciation Luncheon on June 18, and the Balboa Island Pancake Breakfast, and the Historic Home Tour on June 20. Mayor Selich reported that today, Mariners Church and the Balboa Angling Club provided 40 children from Minnie Street in Santa Ana with a half-day fishing trip as a reward for their community service. He also announced that the City received the Urban Development Project of the Year Award from the American Society of Civil Engineers for its work on the Sunset Ridge Park project. Public Works Director Webb addressed the application for the award and the competitive process, and encouraged residents to visit Sunset Ridge Park. Volume 62 - Page 363 City of Newport Beach Study Session and Regular Meeting June 23, 2015 XIII. PUBLIC COMMENTS ON CONSENT CALENDAR Dan Roach commented on a fundraising event by the Newport Harbor Elks where $37,000 was raised for the Newport Beach Police Department to get two new K -9s and training for each. He, along with Sharon Dearborn and Tom Anderson, presented a check to the City and Police Department representatives. Regarding Item 7 (Ordinance No. 2015-13, Regulating and Limiting Vessels Propelled by Water Above the Surface of Newport Harbor) George Schroeder hoped that Council will pull the matter for separate discussion as there are several people in attendance who would like to comment on the item. Val Jamora, Instrumental Music Teacher at Corona del Mar High School, spoke in support of Item 22 (Accept a Check in the Amount of $175,000 from the Newport Beach Arts Foundation to Support Arts Programming in the City) and addressed the importance of arts education. Judy Cole stated that she would like to address Item 7. XIV. CONSENT CALENDAR Regarding Item 10 (Declaration of Surplus Fund Balance in Assessment District 100), Council Member Petros noted that the cost came in under the estimate and a surplus of over $500,000 will be distributed back to the participants within the assessment district. Regarding Item 12 (Sunset View Park Improvements — Notice of Completion and Acceptance of Contract No. 5443), he pointed out that, when he was first elected, it was brought to his attention that the park had been on the books for eight years and that nothing had been done. However, within nine months, the park was developed and commended staff and his Council colleagues for their work. A. READING OF MINUTES AND ORDINANCES 1. Minutes for the June 9, 2015 Study Session and Regular Meeting [100-2015] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. B. ORDINANCES FOR INTRODUCTION 3. Non -Exclusive Solid Waste Collection Franchise with Hartfield Construction Corp, a California Corporation [42/100-2015] a) Adopt Resolution No. 2015-53, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Conduct a Public Hearing to Consider the Granting of a Non -Exclusive Solid Waste Franchise to Hartfield Construction Corp., a California Corporation; b) Direct the City Clerk to publish Resolution No. 2015-53 within 15 days of its adoption. c) Introduce Ordinance No. 2015-17, An Ordinance of the City Council of the City of Newport Beach, California, Granting a Non -Exclusive Solid Waste Franchise to Hartfield Construction Corp., a California Corporation to Prouide Solid Waste Collection Services upon the City Streets and Within the City of Newport Beach, and pass to second reading on July 14, 2015. Volume 62 - Page 364 City of Newport Beach Study Session and Regular Meeting June 23, 2015 4. Non -Exclusive Solid Waste Collection Franchise with James Blomberg, a Sole Proprietor [421100-20151 a) Adopt Resolution No. 2015-54, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Conduct a Public Hearing to Consider the Granting of a Non -Exclusive Solid Waste Franchise to James Blomberg, a Sole Proprietor; b) Direct the City Clerk to publish Resolution No. 2015-54 within 15 days of its adoption. c) Introduce Ordinance No. 2015-18, An Ordinance of the City Council of the City of Newport Beach, California, Granting a Non -Exclusive Solid Waste Franchise to James Blomberg, a Sole Proprietor, to Provide Solid Waste Collection Services upon the City Streets and Within the City of Newport Beach, and pass to second reading on July 14, 2015. 5. Non -Exclusive Solid Waste Collection Franchise with Praisler Hauling & Demolition, Inc., a California Corporation [421100-20151 a) Adopt Resolution No. 2015-55, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Conduct a Public Hearing to Consider the Granting of a Non -Exclusive Solid Waste Franchise to Praisler Hauling & Demolition, Inc., a California Corporation; b) Direct the City Clerk to publish Resolution No. 2015-55 within 15 days of its adoption. c) Introduce Ordinance No. 2015-19, An Ordinance of the City Council of the City of Newport Beach, California, Granting a Non -Exclusive Solid Waste Franchise to Praisler Hauling & Demolition, Inc., a California Corporation, to Provide Solid Waste Collection Services upon the City Streets and Within the City of Newport Beach, and pass to second reading on July 14, 2015. C. ORDINANCE FOR ADOPTION %, �� L D. RESOLUTIONS FOR ADOPTION 8. Resolution Authorizing the Temporary Closure of Selected Streets and Parking Lots for the July 4th Holiday Period [100-20151 Adopt Resolution No. 2015-57, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Temporary Closure of Seashore Drive, Newport Boulevard, San Joaquin Hills Road, Back Bay Drive and Balboa Boulevard, Selected Parking Lots, and Selected Feeder Streets. 9. Summary Vacation of Existing Sewer Easement at 128 Kings Place [100-20151 a) Adopt Resolution No. 2015-58, A Resolution of the City Council of the City of Newport Beach, California, Ordering the Summary Vacation of an Existing 10 Foot Wide Sewer Easement at 128 Kings Place (Lot 9 of Block D, Tract 1219) and Directing the City Clerk to Record Same with the County Recorder's Office; b) Direct staff to process the summary vacation of said easement; and c) Direct the City Clerk to have the Resolution and summary vacation documents recorded by the Orange County Recorder. 10. Declaration of Surplus Fund Balance in Assessment District 100 [100-20151 Adopt Resolution No. 2015-59, A Resolution of the City Council of the City of Newport Beach, California, Directing Disposition of Balance in the Improvement Fund of Assessment District No. 100, authorizing the City to declare the remaining improvement fund balance as surplus and provide staff direction as to the distribution of improvement fund balances in Assessment District 100 (13th St./Balboa Blvd./Adams St./Ocean Front). Volume 62 - Page 365 City of Newport Beach Study Session and Regular Meeting June 23, 2015 E. CONTRACTS AND AGREEMENTS 11. Bayside Drive Storm Drain Litter Removal - Notice of Completion and Acceptance of Contract No. 5954 (CAP15-0025) [38/100-2015] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after City Council acceptance. Council Member Peotter abstained on this item. 12. Sunset View Park Improvements - Notice of Completion and Acceptance of Contract No. 5443 (CAP14-0027) [381100-2015] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after City Council acceptance. 13. Traffic Signal Modernization - Phase 6 - Notice of Completion and Acceptance of Contract No. 5442 (CAP14-0019) [38/100-2015] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after City Council acceptance. 14. Newport Boulevard and 32nd Street Modification - Approval of Amendment No. Two with VA Consulting, Inc. (C-5157) (CAP12-0009) [38/100-2015] Continue to the July 14, 2015 City Council meeting. 15. Approve Agreement with Ed Building Maintenance for Restroom Portering Services and Paper Good Delivery Services (C-6184) [38/100-2015] Approve the janitorial services agreement with Ed Building Maintenance Services for a term of three years with a total amount not to exceed by $345,000.00, and authorize the Mayor and City Clerk to execute the agreement. 16. Approve Agreement with Global Power Group, Inc. for Generator Preventive Maintenance and Repairs Services (C-6185) [38/100-2015] Approve the preventive maintenance and repair agreement with Global Power Group for a term of five years with a total amount not to exceed by $300,000.00, and authorize the Mayor and City Clerk to execute the agreement. 17. Approve of Purchase Agreement with Hanker Equipment Company for One CNG -powered Vactor Ramjet Jet Redder Truck (C-6186) [38/100-2015] Approve the agreement with Hanker Equipment Company of La Verne, California, for the purchase of one CNG -powered 2015 Vactor Ramjet Jet Rodder Truck for a total cost of $498,133.80. F. MISCELLANEOUS 18. Planning Commission Agenda for the June 18, 2015 Meeting [100-2015] Receive and file. Volume 62 - Page 366 City of Newport Beach Study Session and Regular Meeting June 23, 2015 19. Confirmation of Voting Delegate and Alternate for the 2015 League of California Cities (LCC) Annual Conference - September 30, 2015 to October 2, 2015 in San Jose [100-2015] a) Designate Council Member Keith Curry as the City's Voting Delegate and Council Member Kevin Muldoon as the City's Alternate Voting Delegate at the Annual League Conference to be held from September 30, 2015 to October 2, 2015 in San Jose; b) Direct the City Clerk to complete and submit the League designation form by Friday, July 31, 2015; and c) Authorize Council Member Keith Curry and/or Council Member Kevin Muldoon to attend the Annual League Conference pursuant to Charter Section 402 and City Council Policy F-8. 20. Accept the 2013 Emergency Management Performance Grant [100-2015] a) Accept the grant funding in the amount of $13,416 to be used in support of the City's emergency management program; and b) Approve Budget Amendment No. 15BA-049 to accept grant funds from the Federal Emergency Management Agency (FEMA) through the County of Orange, increase revenue estimates by $13,416 in account 2335-4896, and increase expenditures appropriations by $13,416 in account 2335-82008. 21. Acceptance of Donation to the City of Newport Beach for the Purchase of Police Service Dogs and Related Training [100-2015] a) Accept the restricted donation in the amount of $37,236 from the Newport Harbor Elks, Lodge #1767 for the purchase of two Police Service Dogs and related training; b) Approve Budget Amendment No. 15BA-051 to increase FY 2014-15 revenue estimates in 1820-5901 by $37,236 and to increase FY 2014-15 expenditure appropriations in 1830-8211 by $18,618 to purchase one Police Service Dog and related training; and c) Authorize the City Manager to increase FY 2015-16 expenditure appropriations in 1830-8211 by $18,618 to purchase a second K9 in late summer/early fall 2015. 22. Accept a Check in the Amount of $175,000 from the Newport Beach Arts Foundation to Support Arts Programming in the City [100-2015] Approve Budget Amendment No. 15BA-052 to increase revenue estimates by $175,000 in account 4002-5901 (Arts -Private Donations). The funds will be appropriated by budget amendment starting in the 2015-2016 fiscal year. Motion by Mayor Pro Tem Dixon, seconded by Council Member Curry, to approve the Consent Calendar, except for the items removed (6 and 7); and noting the abstention to Item 11 by Council Member Peotter and continuance of Item 14 until the July 14, 2015 City Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Duffield XV. ITEMS REMOVED FROM THE CONSENT CALENDAR 6. Proposed On -Street and Off -Street Parking Rate Increase [100-2015] Council Member Muldoon stated that he will not support the item. Volume 62 - Page 367 City of Newport Beach Study Session and Regular Meeting June 23, 2015 Council Member Peotter indicated that he would like to continue encouraging people to park in parking lots versus on neighborhood streets and have the City explore dynamic pricing. He suggested reducing rates during weekdays, but make adjustments, as appropriate. City Manager Kiff expressed support for the suggestion, especially as it applies to Corona del Mar State Beach. Motion by Council Member Curry. seconded by Council Member Petros, to a) introduce Ordinance No. 2015-20, An Ordinance of the City Council of the City of Newport Beach, California, Amending Newport Beach Municipal Code Section 12.44.040 to Increase On -Street Parking Meter Fees, and pass to second reading on July 14, 2015; and b) adopt Resolution No. 2015-56, A Resolution of the City Council of the City of Newport Beach, California, Establishing a Revised Schedule of Rates for Off -Street Parking Meter Zones. The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Mayor Pro Tem Dixon, Mayor Selich Nays: Council Member Peotter, Council Membeuldoon Absent: Council Member Duffield 7. Second Reading of Ordinance No. 2015-13, Regulating and Limiting Vessels Propelled by Water Above the Surface of Newport Harbor [100-20151 Craig Kennedy, President of the Newport Towers Homeowners Association, referenced an email he sent to each Council Member and noted that the area is a mixed-use area. He added that Jetpack America operates 15 -feet from the Association's pier and expressed concern with unrelenting noise. He believed that this is not an appropriate use in the area and should be done in the ocean. In response to a question from Mayor Pro Tem Dixon, he added that this has been ongoing for several years and has recently become worse. Mike Glenn noted that other watercraft in the Harbor have to dodge jetpack users and expressed concerns with the City only allowing one operator in the Harbor. He believed that the City should consider issuing two permits for increased competition. Judy Cole believed that the jetpack operation is an unsuitable use in the Harbor, is a nuisance to residents and other Harbor users, Jetpack America continues to operate outside the guidelines of the permit, and the use impacts residents, other Harbor users, and property values. She stated that the jetpack operators continuously exceed the speed limit. She urged Council to approve the original Harbor Commission recommendations and suggested that this operation be conducted in the open ocean. George Schroeder thanked Council Members who did not support this item during previous meetings. He believed that the jetpack use is not compatible with the Harbor and questioned why Council did not choose to accept the Harbor Commission's recommendations. Dean O'Malley, President of Jetpack America, provided an update on the company's operations, highlighting changes made to comply with permit guidelines. He noted that safety is the company's number one priority and addressed community outreach and establishing partnerships with area restaurants. Clarence Yoshikane expressed concerns for the safety of other Harbor users and believed that the jetpack operation should occur in the open ocean. He added that he recently sold a property in the area, but many prospective buyers were concerned with the proposed new anchorage in Volume 62 - Page 368 City of Newport Beach Study Session and Regular Meeting June 23, 2015 the area and the jetpack operation. He spoke in opposition to allowing the operation in the Harbor. Don Cole referenced a letter sent to Council and signed by 146 residents, asking Council to ban the jetpack operation inside the Harbor. He believed that the operation is not appropriate in the Harbor, commented on decreases in property values, and presented a letter from a protection insurance firm opposing the operation of Jetpack America in the Harbor. He encouraged Council to accept the Harbor Commission's recommendations and discussed increased uses in the Harbor throughout the summer. In response to Mayor Pro Tem Dixon's question, Harbor Resources Manager Miller clarified permit requirements and prohibitions. He reported that, due to scheduling conflicts, a noise study was not conducted. Mayor Pro Tem Dixon noted her respect for the Harbor Commission and residents, and reported that she will vote in opposition to this item. Motion by Council Member Curry, seconded by Mayor Selich, to conduct second reading and adopt Ordinance No. 2015-13, An Ordinance of the City Council of the City of Newport Beach, California, Regulating and Limiting the Operation ofVA s Propelled by Water above the Surface of Newport Harbor. The motion carried by the following roll call vote: V Ayes: Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Selich Nays: Council Member Peotter, Mayor Pro Tem Dixon Absent: Council Member Duffield XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS Arthur Jeppe commented on the sale of the St. James the Great Episcopal Church property and reported that the developer has not extended the opportunity for the congregation to lease back the space. He noted that this would result in the City having an abandoned site while the developer attempts to rezone the property. He pointed out that the church has provided important spiritual, religious, and social cohesion to the community for over 70 years, and asked that Council help resolve the issue in any manner possible. Council Member Peotter stated that he was on the Planning Commission when the zoning was put into place that implemented the 2006 General Plan Amendment and agreed with Council Member Curry in that Council will look closely at this property when the project is brought forward. He added that he feels strongly that church zoning is an important community benefit. Council Member Petros noted that this has been a transaction between two private parties and that the City has yet to be approached to act in any way. He indicated that the City will probably not be involved for another year or more. He stated that he has no answer as to how to address this issue, but that it is incumbent upon everyone to come up with the solution. Mike Glenn discussed prior actions by City Council regarding fire rings. He reported that City staff presented to the Coastal Commission a plan which was different than what Council voted on in January. He referenced a statement by the City Manager regarding a closed session meeting that changed the vote from Council's prior actions and alleged a violation of the Brown Act. Volume 62 - Page 369 City of Newport Beach Study Session and Regular Meeting June 23, 2015 Paul Matheis commented on his previous requests that Council seek a Grand Jury investigation into the leaking of a confidential memorandum to a news reporter involving an Assistant City Manager. He believed that an investigation by the employees that the City Council hires would be seen as biased by the public and that an internal investigation would be problematic. Lesley Miller urged the City Council to take a comprehensive approach to dealing with the Peninsula, believing that it is blighted and in need of attention. Reverend Cindy Voorhees, St. James the Great Episcopal Church, thanked Council for its support and reported that the Friends of St. James the Great have filed a temporary restraining order on the sale of the property so that the congregation may have more time to react. She asked for Council's continued support and noted the church's contributions to the community. Evelyn Kroner stated that Council can help St. James the Great Episcopal Church by voting to affirm the 2006 zoning plan for Lido Village. Bob Voorhees commented on everyone's responsibility to maintain the quality of life and preserve resources in the City. He added that residents will do everything in their power to preserve St. James the Great Episcopal Church. He addressed benefits provided to the community and asked for fair consideration of the matter. Don Beatty referenced his previous comments to Council regarding mooring rates and expressed concerns regarding the approved rate. He asked Council to reconsider its decision, believing that the approved rate was derived out of thin air. XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Mayor Pro Tem Dixon reported that, on June 10, she attended an Orange Section of the American Planning Association event where it recognized the Balboa Village Revitalization Program with an Award of Merit in the Economic Planning and Development Category. She thanked staff and residents, and urged continuing to work together for the benefit of the City. XVIII. PUBLIC HEARING 23. Award of Non -Exclusive Solid Waste Collection Franchise to Genesis Dispatch, Inc., a California Corporation [42/100-2015] Municipal Operations Acting Co -Director Pisani provided the staff report In response to Council Member Petros' question, City Attorney Harp reported that, under the Public Resources Code, if the City wants to move from a non-exclusive system to an exclusive system, contractors must be given a five-year notice. Motion by Council Member Petros, seconded by Mayor Pro Tem Dixon, to a) adopt Ordinance No. 2015-16, An Ordinance of the City Council of the City of Newport Beach, California, Granting a Non -Exclusive Solid Waste Franchise to Genesis Dispatch Inc., a California Corporation to Provide Solid Waste Collection Services upon the City Streets and Within the City of Newport Beach; and b) direct staff to return to the City Council with the process of moving from a non-exclusive solid waste franchise contract to an exclusive solid waste franchise contract for all solid waste contracts. In response to Council Member Peotter's question, Municipal Operations Acting Co -Director Pisani reported that Council could approve multiple exclusive contracts. Volume 62 - Page 370 City of Newport Beach Study Session and Regular Meeting June 23, 2015 Council Member Petros stated that it would not be his intention to have a small number of contractors, but noted that the City currently has 36 operators and believed that there could still be an unfettered, competitive market while improving the quality of life in neighborhoods. Mayor Selich opened the public hearing. Hearing no testimony, he closed the public hearing. Council Member Peotter expressed the opinion that anything limiting this process would limit the market place. The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Mayor Pro Tem Dixon, Mayor Selich Nays: Council Member Peotter, Council Member Muldoon Absent: Council Member Duffield 24. Provide Direction to Staff on Further Review of Existing Easements and Conditions Associated with the Prior Vacation of Ticonderoga Street [100-2015] Public Works Director Webb provided the staff report Council Member Petros reported that he brought this forward after meeting with homeowners in Newport Crest and noted that there are no plans that would provide for a road that connects Ticonderoga Street to Bluff Road or 15th Street. He added that residents of Newport Crest use Ticonderoga for direct access to their neighborhood. He suggested removing Condition No. 1(e) as listed in Resolution No. 84-38. Motion by Council Member Petros, seconded by Council Member Peotter, to direct City staff to bring back a resolution that removes Condition 1(e) and any other conditions, as needed, that were included as part of the prior vacation of Ticonderoga Street in 1984. Leslie Rosenthal addressed potential impacts of extending Ticonderoga Street, especially in light of the Banning Ranch project. Ginny Lombardi spoke in opposition to extending Ticonderoga Street and believed that doing so would negatively impact the residents' quality of life. She added that Newport Crest is a walking and bicycling community and requested that Ticonderoga be maintained in its existing condition, as well as entering into a new agreement with the City to reflect that position. Jonathan Weiner spoke in support of keeping Ticonderoga in its existing condition and commented on potential negative impacts of extending it to Bluff Road. Tom Schottmiller commented on the neighborhood being a walkable community and urged Council to ensure that Ticonderoga is not extended in the future. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Duffield Volume 62 - Page 371 City of Newport Beach Study Session and Regular Meeting June 23, 2015 25. Appointments to Boards and Commissions [100-2015] Motion by Council Member Curry, seconded by Council Member Peotter, to continue the appointments to the July 14, 2015 City Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Duffield 26. Sculpture Exhibition in Civic Center Park [100-2015] Library Services Director Hetherton provided the staff report City Arts Commission Chair Goldberg addressed opportunities that the Sculpture Garden will present for the benefit of the community, community outreach, and docent tours, and thanked Council for its support. City Arts Commissioner Smith referenced an article by Arts OC relative to the City's sculpture exhibition. He addressed the installation of remaining sculptures. Robert Stein, Arts OC, provided a PowerPoint presentation to address his organization and the process by which the art pieces were selected. He addressed submissions, selection of finalists, consideration by the City Arts Commission, judges, selection criteria, and an overview of the works selected. Rebecca Ehemann, Green Public Art Consultancy, provided a detailed description of the ten sculptures and four alternative sculptures selected, including the placement within the Sculpture Garden. Council Member Muloo asedRncerns with the safety of Loomings and suggested replacing it with an alternate sculpture. John Anderson commented on the proposed sculptures, believing that the pieces diminish the aesthetic value of the individual sculptures and the nature of the Sculpture Garden. He suggested relocating the sculptures to key public and private locations within the City and exploring a public/private partnership to fund and enrich a multi -locale program, encouraging community input and participation, including a children's interactive sculpture area, and maintaining and enhancing the existing Civic Center Park. George Schroeder spoke in support of the project and concept, but expressed agreement with Council Member Muldoon's concerns regarding safety. Barry Allen congratulated the City for the low-cost project and commented on the Library Services Director's expertise relative to art. He shared his opinions regarding each individual piece and expressed concerns with their safety. Lesley Miller spoke in agreement with Mr. Anderson's comments and expressed the need to involve the public in the selection process. She also commented on enhancing the cultural value of the City by placing some of the pieces in other locations in the City. Lila Crespin noted that there is no way that Council would be able to choose art that would be agreeable to everyone. She commended Council for choosing the appropriate people to be on Volume 62 - Page 372 City of Newport Beach Study Session and Regular Meeting June 23, 2015 the City Arts Commission and spoke in support of the selected sculptures. She thanked Council for its support of the arts. Carmen Smith, President of the Newport Beach Arts Foundation, thanked Council for its support and commented on the popularity of the Sculpture Garden. She hoped that Council will continue the project for many years to come. Joy Brenner commented on her love of public art; however, expressed the opinion that the sculptures are not reflective of the City and are not cohesive. She suggested using appropriate, local art. She believed that the chosen pieces could work if they were presented in a different manner. Council Member Muldoon expressed safety and liability concerns relative to Loomings, La Cage aux Folles, and Demoiselle. He believed that all four alternatives seem safer. City Attorney Harp noted that there are always liability issues and suggested taking a look at a signage program and whether people should be able to climb on the sculptures. Council Member Peotter commented on the artist honorarium and noted that no other costs were listed. Library Services Director Hetherton reported that consultant costs were just under $50,000, which also includes the cost of installation. He indicated that the total costs were around $100,000. Council Member Peotter commented on transitioning to private funding going forward. Library Services Director Hetherton reported that there is interest among the Commission to move towards a private -funding model in the future. Council Member Curry agreed with Council Member Muldoon's concerns in terms of evaluating the pieces from a liability perspective. He agreed with City Attorney Harp's suggestion to look at signage to address those concerns. He congratulated the City Arts Commission, staff, consultants, and residents for their efforts on this item. Motion by Council Member Curry, seconded by Council Member Petros, to approve the ten sculptures and the proposed locations within the Civic Center Park, as recommended by the City Arts Commission for the temporary sculpture exhibit. Mayor Pro Tem Dixon spoke in support of establishing public-private partnerships and encouraged the City Arts Commission to work with the public to launch an exciting program going forward. Substitute motion by Council Member Peotter to include the goal of having the next ten sculptures to be privately funded by at least 50%. City Attorney Harp noted that matter related to the substitute motion was not properly noticed and suggested bringing that item to Council at a future meeting. Mayor Selich noted that there is a broader discussion needed about public art funding and suggested discussing it at a separate meeting. The substitute motion died for lack of a second. Council Member Petros expressed his support of the motion and thanked the City Arts Commission for their work. Volume 62 - Page 373 City of Newport Beach Study Session and Regular Meeting June 23, 2015 Regarding Loomings, City Attorney Harp suggested that, if Council Member Muldoon wants it replaced, he should make an amendment for alternate replacement. He added that the area around Loomings could also be roped off. Mayor Selich suggested letting staff evaluate the best way to deal with the risk aspect. He added that, if staff deems it would be risky, they can bring the matter back to Council for consideration of one of the alternates. Mayor Selich emphasized that there needs to be increased public outreach in the process. Council Member Peotter stated that he will support the motion, but wants to address private/public partnership in the future. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Duffield 27. Donation of Sculpture from Ben Carlson Memorial Foundation [100-2015] Library Services Director Hetherton provided the staff report and introduced Jake Janz Jake Janz, Ben Carlson's brother-in-law and Ben Carlson Memorial and Scholarship Foundation Board Member, provided a PowerPoint presentation to address Ben Carlson's heroic act in saving a swimmer in distress while making the ultimate sacrifice and losing his life. He added that Ben's actions were iconic and commented on those who are in support of his legacy. He addressed donation of art, landscaping, fundraising, distribution of scholarships, donations to water -safety, information regarding Lifescapes International, Valley Crest, and Advance Digital Manufacturing, statue materials, maintenance, interactivity of the piece, promoting ocean -water safety and the proposed location. He hoped that Council will approve the sculpture as a symbol of lifeguards everywhere. Council Member Petros commended Mr. Janz, the Carlson Family, and the Foundation for doing this on their own, without the need for public funding. He addressed the tragic loss the Carlson Family has experienced and commended them for teaching others how someone can come out of tragedy and engage the public. He expressed his respect and support for the family. Council Member Curry agreed with Council Member Petros' comments and commended the family and the community for coming together to honor Ben Carlson's memory and his heroism. Council Member Peotter commented positively on the statue. Mayor Pro Tem Dixon thanked Mr. Janz for his work and efforts and commented on the importance of water safety. She added that this is a remarkable honor and commended the family for everything it has done for the community. Council Member Muldoon commented positively on the statue and its interactive component. Mike Glenn read a statement from Congressman Dana Rohrabacher in support of lifeguards and asking that Council approve the Ben Carlson Memorial statue. Mr. Glenn expressed his support and gratitude for Council's consideration. Volume 62 - Page 374 City of Newport Beach Study Session and Regular Meeting June 23, 2015 Motion by Council Member Petros, seconded by Mayor Pro Tem Dixon, to a) accept the donation of a memorial statue from the Ben Carlson Foundation in accordance with Council Policy I-11, Acquisition of Art by the City of Newport Beach; b) waive Council Policy B-11, The City Employees' Memorial at Bob Henry Park; and b) approve the placement of the statue at the base of the Newport Pier. Mayor Selich commented on Mr. Janz's efforts and commitment, addressed community support for the project, and thanked the family for their work. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Duffield 28. Ordinance No. 2015-21: Fuel for Beach Fire Rings; Ratification of the California Coastal Commission's Approved Fire Ring Plan for Newport Beach [100-20151 City Manager Yiff provided the staff report, thanked all the stakeholders involved in the discussion, and addressed the ratification by the Coastal Com si Jolene Fuentes urged Council to approve the item. -�i Charles Farrell commented on the impacts of pollution emitted by fire rings and spoke positively regarding the charcoal -only policy. He added that there is general compliance, except after dark. He reported witnessing people burning blankets and plastics on a charcoal - burning site after dark. He noted that the City must gain control of its beaches, especially after dark. Dan Stevens, Newport Beach Lifeguard, thanked Council for approving the Ben Carlson statue and for preserving some wood -burning fire rings. He spoke in favor of keeping wood -burning fire rings. Mike Johnson, District Director for Assemblyman Travis Allen, voiced support of wood -burning fire rings. Matt Holder spoke in support of wood -burning fire rings. He commended Council and staff for working with stakeholders on this matter. He urged Council to approve the item. Josh Yocum commended Council and staff for their work, spoke in support of the plan, and urged Council to approve it. He commented on the location of the Corona del Mar State Beach fire rings and suggested the possibility of implementing an active, monitoring mitigation plan to avoid the tide washing ash and other debris into the ocean. He believed that the lifeguards could act as the beach ambassadors to this matter. Mike Glenn commented on the plan and Council's action regarding this matter. He expressed concerns with the lack of public input on the last vote by Council and questioned how staff can countermand a Council vote. Mayor Selich addressed the Coastal Commission application process. Mayor Pro Tem Dixon thanked Council Member Peotter, staff, Friends of the Fire Rings, and residents for their work on this matter. She commented on the compromise in developing a solution approved by the Coastal Commission. Volume 62 - Page 375 City of Newport Beach Study Session and Regular Meeting June 23, 2015 Council Member Muldoon voiced his support of the item. Council Member Peotter commented on the group effort. Council Member Curry voiced his support of the motion and noted that Fire Ring Plan 17 is similar to a plan that was proposed by the previous Council in 2013. He believed that the process lacked transparency, is an inappropriate way to handle the concerns of the community, and ignored the proper procedures of due process. Motion by Council Member Peotter, seconded by Council Member Petros, to a) authorize the City staff to implement the fire rings plan as approved by the California Coastal Commission on June 11, 2015; and b) introduce Ordinance No. 2015-21, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 11.08.060 of Chapter 11.08 of the Newport Beach Municipal Code Relating to Beach Fire Rings, and pass to second reading on July 14, 2015. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Duffield Mayor Selich commented positively on the approved plan. XX. MOTION FOR RECONSIDERATION - None 14 3M. ADJOURNMENT- 10:19 p.m. �' The agenda for the Regular Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on June 18, 2015, at 4:00 p.m. City Clerk Recording Secretary Mayor Volume 62 - Page 376