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HomeMy WebLinkAbout01 - 5-27-03June 10, 2003 Agenda Item No CITY OF NEWPORT BEACH City Council Minutes Study Session May 27, 2003 - 4:00 p.m. ROLL CALL INDEX Present: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Absent: Adams (excused) CURRENT BUSINESS CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Item 9 (Irvine Avenue Median Landscaping II, C- 3576), Council Member Webb noted that half of the project is in Costa Mesa and asked if the City has received any contribution from them. Public Works Director Badum stated that they have communicated with Costa Mesa staff who indicated that they do not have any funds for this purpose at this time. He believed that it would be helpful if a Council -to- Council discussion was held. He stated that, from Costa Mesa's perspective, the existing landscaping serves its purpose. In response to Mr. Bludau's question, Council Member Webb indicated that he would like him to contact the Costa Mesa City Manager to see if a proposal could be brought before Council. He suggested that the contract still be awarded tonight. Regarding Item 6 (Fourth of July Street Closure Resolution), Council Member Webb noted that the resolution mentions Back Bay Drive as one of the streets to be closed, but the resolution does not discuss why Back Bay Drive would need to be closed. He believed that, if this happens, an explanation should be included in the findings. He asked if the City really wants to close Back Bay Drive or have the ability to close it. Mayor Bromberg suggested pulling this item at the regular meeting for discussion. Regarding Item 5 (City's 2003 -04 Legislative Platform), Council Member Proctor believed that he did not receive Attachment B. Assistant City Manager Kiff indicated that, originally, Attachment B was supposed to be the platform and Attachment A was the resolution adopting the platform. He indicated that he did not phrase this properly in the staff report. Regarding Item 11 (216t Street/Newport Boulevard Intersection Improvements), Council Member Heffernan stated that he did not see Exhibit H in the report. Regarding Item 12 (Landscape Maintenance Agreement for Bonita Canyon Sport Park), Council Member Heffernan asked that the potential conflicts with the City taking over the landscape work and accepting the work for construction defect issues be explained. Regarding Item 15 (2003 -04 Proposed Budget Hearing; 2003 -04 Appropriation Limit Hearing), Council Member Heffernan requested that "Gann Limit" and Volume 56 - Page 154 City of Newport Beach Study Session Minutes May 27, 2003 INDEX what it has to do with the City's budget be explained. Council Member Heffernan noted that he asked Assistant City Manager Kiff to give the Newport Coast Advisory Committee report about the fire zones. Regarding Item 24 ( Councilmanic Re- Districting), Council Member Heffernan requested current Councilmanic district maps. 2. 2003 -04 BUDGET REVIEW. CIP Review 2003 -04 Budget Review (40) City Manager Bludau noted that the first budget review ended with a review of the Capital Improvement Program (CIP) projects. He indicated that a few of the major projects will be highlighted so Council can understand where the CIP money is going and to list the projects that were not funded. Public Works Director Badum utilized a PowerPoint presentation which corresponds to pages in the CIP budget book. He noted that Fire Station No. 7 (page 4) involves the land purchase, design, and construction of a new fire station in the Santa Ana Heights area. He indicated that $10,000 is being rebudgeted from last year and will be used to cover City costs for processing the preliminary information. He reported that the bulk of the project will be funded under the redevelopment agency. He noted that the County has committed to providing funds for the purchase of the land, the design, and construction of the fire station. He stated that they hope to move forward with design in the next fiscal year. Regarding the Mariners Joint Use Library (page 10), Mr. Badum indicated that the project is under.the design process, Council Member Webb is heading the steering committee, and the construction and design funds have been rebudgeted. He noted that the funds came primarily from private contributions and the Library Grant. Council Member Heffernan asked if the library can be built for $3.9 million. Mr. Badum noted that it could cost about $300,000 to redo the park. He indicated that fundraising is still continuing, but the budget amount is enough to construct the library as currently planned. Regarding the Newport Harbor High School Swimming Pool (page 11), Mr. Badum indicated that the Newport -Mesa Unified School District (NMUSD) will be the lead agent on the project, it would cost about $440,000 to complete, and the City's commitment was estimated to be about 25 %. He reported that the pool has been closed and they are in the process of starting the project. Noting that this is a joint use facility, Council Member Heffernan asked if the City is committed to the. school district to pay the 25°A. Mr. Badum believed that the City has committed, but pointed out that Council approves the budget. Mayor Pro Tem Ridgeway stated that the school district knew that the 25% was a condition based upon Council approval of this budget item. Regarding the Newport Village Park Conceptual Design (page 23), Mr. Badum stated that they are proposing to budget $120,000 to start the design process. He indicated that the funding source for the construction is still unknown, but they will pursue grants once they have completed the plans. Mayor Bromberg Volume 56 - Page 155 City of Newport Beach Study Session Minutes May 27, 2003 INDEX asked that this project not be at the top of the list because there is a high probability that he will be asking Council to move the senior housing project from Lower Bayview to Newport Village. Mr. Bludau noted that they will not expend funds even if Council approves this as part of the budget until this is brought back to Council and they are ready to start. Regarding the Sunset View Park Land Acquisition (page 26), Mr. Badum stated that the City is rebudgeting $600,000 for the purchase of the park. He indicated that this project has been stalled and they are working with the State Park Department and Caltrans to acquire the land in a payment -type agreement since the City does not have the funding to move forward. Further, the City does not have funding available to start construction, so the project may be contingent on adjacent development. Regarding Bayview Landing Park (page 27), Mr. Badum stated that they are moving forward with this project and will be rebudgeting a major portion of the funds. He indicated that design is moving forward and is tied together with the senior housing project which may or may not go forward. He reported that, if the senior housing project does not move forward, the City will need to reassess this project, along with the Newport Village Park site. Regarding the Maintenance Dredging Permit (page 37), Mr. Badum stated that the City's permit is due to expire in 2005, but the process needs to begin now since a substantial amount of money needs to be spent to get the permit renewed. He indicated that they are budgeting $100,000 this fiscal year and will hopefully be able to budget additional funds next year.' Mayor Pro Tem Ridgeway reported that all the moneys expended ultimately will become a reimbursement to those asking for a permit in the future. Regarding Stormwater Pollution Prevention ( NPDES) (page 39), Mr. Badum stated that this is the City's share of the funds that were paid to the County for the co- permit. He reported that all Orange County cities banded together under one permit. He indicated that the County does a lot of work for the City relative to water quality monitoring, education, development of best management practices, and negotiations/meetings with the Water Quality Board. He noted that this expenditure is expected to happen well into the future and will increase marginally every year in order to stay current with the NPDES permit. Regarding the Balboa Island and Little Island Bulkhead Inspection and Report (page 40), Mr. Badum reported that this is an ongoing program since the bulkheads in that area are starting to get old. He believed that this is an important project to keep the City's infrastructure up -to -date and since it shows how important the harbor and its surrounding properties are to the City. Regarding the Beach Playground (page 41), Mr. Badum indicated that this is a joint project with NMUSD. He stated that they are proposing to contribute $25,000 toward the hard surface play area that is adjacent to Newport Elementary School. He stated that the pavement is in extremely bad shape, has huge cracks, and the school kids almost cannot use it safely. He noted that this is also a useful play area when school is not in session and explained that this is why they are proposing this under a joint program. Mayor Pro Tem Ridgeway pointed out that the safety of the playground is extremely problematic. He Volume 56 - Page 156 City of Newport Beach Study Session Minutes May 27, 2003 INDEX believed that this is money well spent in terms of safety, rather than have ongoing maintenance. Regarding the Sediment TMDL Projects for Newport Bay (pages 43 to 45), Mr. Badum indicated that this shows the City's ongoing commitment to water quality in the Back Bay. He stated that this work will continue and will probably be an ongoing program that the City will be committed to. He noted that the health of the Upper Newport Bay really affects Lower Newport Bay and the ocean. Regarding the Corona del Mar Beach Improvements (page 52), Mr. Badum stated that $690,000 is funded by the oil spill program and about $480,000 is funded by grants. He indicated that money has been spent from this account, so the remaining funds have been rebudgeted. He reported that the project will take some time, with next year going towards design and possibly construction that will expend over several years. Council Member Nichols stated that he has received unfavorable input from neighbors about this' project as they feel the project is not going in the right direction. He stated, that he asked for justification for the lifeguard stations. Mayor Pro Tem Ridgeway noted that this is a budget item and not a discussion about the merits of the project. Mayor Bromberg stated that Council already discussed the merits of the item and the question is now whether this will pass in a proposed _budget. Mr. Badum reported that this project will basically replace existing infrastructure and make some improvements to the lifeguard facility. He believed that .the presentation that was given to the Parks, Beaches & Recreation Commission (PB &R), which will also be presented to Council, will show that there is more requests for funds for the project than is actually budgeted. He stated that they are still in the process of collecting input from the community. Mr. Bludau indicated that staff can provide information about why it feels the lifeguard tower is an important element to the project. Mayor Bromberg asked that he work with Council Member Nichols since this was already discussed. Regarding the Big Canyon Reservoir Disinfection Modification and Covering (pages 65 and 66), Mr. Badum stated that the disinfection modification involves changing the way the City. chlorinates the water so it is less volatile and dangerous. He reported that gaseous chlorine is an issue in the event of a leak and is a little more problematic when handling. He indicated that this will further increase the quality of the City's water program. Regarding the cover, Council Member Heffernan stated that his friend who heads a national engineering firm that builds them throughout the United States cautioned him that the people who used to see blue water will now see a gray cover. He stated that the City should be prepared for an outcry from Spyglass, Seaview, etc. Mr. Bludau indicated that there are few color choices. Mr. Badum agreed and noted that they discussed the cover and how to mitigate it with landscape planting with the adjacent residents. He stated that they are open to working with the community, but it does not seem like there are very good alternatives for covering the reservoir. He added that the covers do not come clear or opaque. Mr. Bludau stated that part of the purpose of the cover is to ensure that sunlight does not flow to the water where things can grow. Mayor Pro Tem Ridgeway believed that UV rays kill critters on top. Council Member Nichols stated that this is supposed to keep heat out and believed that the cover should be white. Volume 56 - Page 157 City of Newport Beach Study Session Minutes May 27, 2003 INDEX Regarding Grease Control Devices (page 69), Mr. Badum stated that this is funded under the Wastewater Enterprise Fund. He noted that this is important because anything that keeps grease out of the system will help prevent spills in the future. He indicated that there will be continuing expenditures in order to get the grease control devices inspected and functional. Further, they will be working closely with the Orange County Sanitation District to do this. Regarding the Sewer Pump Station Master Plan Improvements (page 71), Mr. Badum stated that the City has several sewer pump stations that are due for upgrades or to be replaced with higher efficiency equipment (China Cove, Mariners Drive, and 62nd Street). He indicated that good, functioning pump systems will prevent spills, so they deem this as another important.project. Regarding the Corona del Mar Coast Highway Pedestrian Improvements (page 77), Mr. Badum stated that this project is moving forward and they want to reemphasize that it is still in the CIP program. He noted that they originally budgeted $100,000 and will rebudget $71,000 of that. He reported that they have a consultant who is doing the study and is almost ready to start showing them the results of the study and what they can build to improve pedestrian crossings in Corona del Mar. Council Member Nichols asked if this can be brought to the public. Mr. Badum stated that they are planning to have a public workshop that will involve the Corona del Mar Business Improvement District (BID), homeowners associations, and anyone else who wants to join. Council Member Nichols asked if this project is contingent on the City taking over Coast Highway and, if it is, he believed it definitely needs to be discussed with the public. Mr. Badum indicated that they envision this project to move forward regardless if that happens since it is a budgeted project. He stated that the only difference is, if the City does not take possession of Coast Highway in Corona del Mar, the processing requirements become more onerous since the City would need Caltrans permission to do various things. Regarding the Water Quality Studies (page 86), Mr. Badum stated that this is a grant funded project, $100,000 is being rebudgeted, and the City will be pursuing additional grants for $200,000. He noted that this emphasizes the City's focus on water quality and all the things the City needs to do for the Bay. Regarding the Mariners Park Recreation Facility Improvements (page 87), Mr. Badum stated that this is the complement to the library. He reported that $312,000 of Proposition 40 funds will be set aside to redo the ball fields, tennis courts, and other ancillary facilities that will be impacted because of the library construction. He noted that there will be a community meeting this week to discuss the various concepts. Regarding the Coast Highway Channelization in Corona del Mar (page 95), Mr. Badum stated that this project involves the Corona del Mar BID and the residents wanting to have more channelized traffic movement. He noted that there is currently a lot of striped medians, but the proposal is to build raised medians that will be landscaped. He indicated that this will improve the safety of turning movements and also beautify the area. He noted that this is a rebudget from the current budget. Council Member Nichols noted that there are only nine people on the BID and believed they do not represent Corona del Mar. Volume 56 - Page 158 City of Newport Beach Study Session Minutes May 27, 2003 INDEX Regarding the Newport and Balboa Boulevard Merger (Mixmaster) (page 98), Mr. Badum reported that, on tonight's agenda, Council will hopefully authorize the design of this project which involves changing 21st Street into a two -way access so it is easier to get into the pier area. He stated that the current amount is being rebudgeted, but added that he is not sure if all of the $400,000 will be needed. Mr. Bludau noted that they are not sure what the design will look like but this will be acted upon tonight. He stated that the design will come back to Council. Regarding the Traffic Signal Coordination Improvements (page 99), Mr. Badum stated that this coordinates with last year's Top 10 projects. He indicated that the timing change will first occur at Jamboree and MacArthur' during the summer to hopefully improve the traffic flow. Regarding the Newport Boulevard Right Turn Lane at Hospital Road. (page 101), Mr. Badum indicated that this project has been on the board for some time. He noted that, since Newport Boulevard is under Caltrans control, the City needs to start the process to formulate the plan to get approvals and permits for a right turn lane on southbound Newport Boulevard to Hospital Road. Mr. Badum indicated that he was trying to work on another slide to show which projects were requested, but not funded this year; however, he provided a handout instead. He reported that there were about $15 million in requests and there are about $8 million of projects listed on the handout. Regarding the Avon Street Extension/Cul -de -Sac project (page 94), Council Member Webb asked if the City is getting any contribution from the property owners. Mr. Badum stated that the project was planned to have contributions and discussions are still underway. He indicated that they are envisioning possibly using Avon Street as. an access to help reduce congestion and turn movements on Coast Highway. He reported that their proposal is to have the City fund 500A and have the property owners responsible for the other 50 %. Mayor Pro Tem Ridgeway stated that he has been approached by a buyer of the residential property uphill from the location who indicated that they would make contributions, so the 50% may not be required. Regarding the Central Irrigation Computer System — Phase IV (page 64), Council Member Webb'beheved that this is an expensive computer. Mr. Badum stated that the goal of the system is to revamp most of the major irrigation systems so they are tied together and centralized with the computer controller. He stated that he is not sure of the exact scope of the project, but someone from Utilities or General Services can assist. Council Member Webb noted that this is being paid for by the. water fund and that this is normally not done with irrigation systems. Regarding the Welding Annex at Building D in the Corporation Yard for $174,000, Council Member Webb asked if this is a new building. Mr. Badum believed that this is a modification to an existing building since State regulations have been enacted that require the City to have separate facilities. Council Member Webb requested more information on this. Volume 56 - Page 159 City of Newport Beach Study Session Minutes May 27, 2003 INDEX Regarding Street Tree Reforestation (page 22), Council Member Webb noted that this is for the removal of ficus trees and 200 diseased trees. He stated that this only allows the City about $250 for each replacement tree. He asked that planting bigger trees and removing less trees be looked at for the same amount of money. Regarding the East Coast Highway Widening between Morning Canyon and Cameo Shores Road, Council Member Nichols asked if the $200,000 represents the City's contribution. He stated that he believed that the City's contribution for the sidewalks, curbs, and retaining wall base were less than this amount. Mr. Badum explained that this project is in a portion of Coast Highway where there is no sidewalk, so pedestrians have to walk in the street. He reported that this project would construct the sidewalk and the retaining wall. He stated that they have been informed by the adjacent property owners.that they may be interested in some kind of cooperative project where they may contribute to the project. He noted that this project may be complicated due to Caltrans permitting and processing. He added that the amount is a carryover and believed that it is in the neighborhood of what they thought it would cost, including design. Council Member Webb believed that the $200,000 was for the sidewalks and the City originally agreed to contribute $32,000 towards the construction of the wall. The homeowners association would contribute anything beyond the City's $32,000 contribution. He stated that the agreement describing this was executed about four or five years ago. Regarding the Newport Terrace Landfill Gas Remediation, Mayor Pro Tem Ridgeway asked if the amount represents the City's 50% or if there is another component being paid for by the association. Mr. Badum believed that the project is 50150, adding that they are looking to recoup funds from whatever State programs are available. He stated that he believes that the City's share is coming from money collected from the trash collection environmental fee. Mayor Pro Tem Ridgeway asked if there are any items that are unfunded that elevate themselves to a safety concern for the City. Mr. Badum believed that they tried to address the "must do' projects and have been very conservative in this year's CIP. He added that they also tried to cover all the bases and work with all the departments. He indicated that the Lido Isle Bridge is a currently funded project and they are hoping to award that in July. Bernie Svalstad took issue with Council Member Nichols' statement that the Corona del Mar BID does not represent Corona del Mar. He reported that 600 businesses pay fees to the BID and elect the nine people. He likened the statement to saying that the Council Members do not represent the City because there are only seven of them on Council. Budget Detail City Manager Bludau reported that each department was asked to provide basic information via PowerPoint in order to ensure there was focus. Mayor Bromberg asked if there was enough money in the budget to get a remote sensor to control the lights from the dais. Volume 56 - Page 160 City of Newport Beach Study Session Minutes May 27, 2003 INDEX Regarding the Council's budget, Assistant City Manager Kiff noted that the mission statement appears in the beginning of the Resource Allocation Plan (RAP). He reported that there is nothing new in Council's budget, but there is a slight decrease in next year's budget. He noted that he should have included $300,000 for airport management that the City Attorney handles for Council. He indicated that the $300,000 is a substantial reduction because of the work done last year on the Settlement Agreement. Mr. Bludau stated that the $37,000 differential comes in bits and pieces, and is based on what has been spent historically in the Council budget. He reported that the largest reduction ($15,000) was in the 8080 account (prof/tech acct.). Mr. Kiff added that this account also includes the contract with Ken Emanuels for lobbying services.and income property management. He noted that Council does not levy any fees or charges. He highlighted the 2003 -04 Council goals that are listed in the RAP. Regarding the City Clerk's budget, City Clerk Harkless noted the mission statement which points out that the department is a service providing department. She stated that there is not a lot of difference in the budget this year, except for the reduction of $30,000 in maintenance and operations. She noted that, last year, Council approved a $30,000 supplemental budget for the Records Management Program which is coming to an end. She reported that a portion of the consultant's contract was encumbered into the next fiscal year because it is anticipated that the City Attorney's office will review all the retention schedules that will be brought to Council the second meeting in July for approval. She stated that there is no election scheduled this year. Ms. Harkless reported that, in February. 2002, she applied to the State Department to become a Passport Acceptance Facility and noted that this service has generated almost $22,000'. in revenue from processing about 890 passports since that time. Regarding the City Manager's ,budget, City Manager Bludau read the mission statement. He reported that the $578,063 differential is in two locations in the budget. He stated that the 8084 account is the repayment that the City would make for fuel modification zone cleaning. He noted that $403,000 is for the Code Enforcement Division which was added to the City Manager's budget. He stated that the City Manager's office showed 7 employees last year, but this coming year is showing 6.27 which is basically the same number of people. He indicated that the Public Information Officer (PIO) is still one position, there are still 3 full-time employees and 15 part -time employees in Harbor Resources with 2 full-time and 20 part -time parking lot attendants (7.28 full-time positions), and the Balboa Yacht Basin still has one full-time and one part -time employee. He reiterated that the City Manager's office personnel does not change, except for the Code and Water Quality Enforcement Division. Mayor Pro Tem Ridgeway asked how much of the fuel modification zone is in the City Manager's budget and whether the City gets reimbursed by the homeowners associations in Newport Coast. Mr. Bludau stated that the City will not get reimbursed since this is part of the Memorandum of Understanding (MOU) which indicated that, once the fuel modification zones are brought up to Fire Department standards, the City would pick up the ongoing costs of the two annual cleanings. He explained that the reason this is in the City Manager's budget is because the Fire Department wanted to ensure there was strict accounting for how much money was being paid. Further, since the City Volume 56 - Page 161 City of Newport Beach Study Session Minutes May 27, 2003 INDEX Managers office administers and enforces the MUU, it was placed in the Uity Manager's budget and only he or Mr. Kiff is authorized to release the money. Mayor Pro Tem Ridgeway asked, after all terms of the MOU have been satisfied, whether this will go to the Fire Department. Mr. Bludau stated that it could. Mr. Kiff indicated that they did not want to put the Fire Department in the position to certify that the zones were in compliance and cut the check. Mr. Bludau reported that the Harbor Resources budget is $1.093 million, there are 14.34 personnel which also includes part -time tidepool rangers and parking lot attendants. He reported that, on tonight's agenda, there is a staff report requesting that the City Manager's 8080 account address studies for eelgrass and dredging. He highlighted the CIP notes to prepare for the Maintenance Dredging Permit's expiration in 2005 and the Harbor Commission's disappointment that $125,000 for the Rhine Wharf guest dock did not make the CIP cut. Mayor Pro Tem Ridgeway asked that the Harbor Commission Chair write Council a letter requesting the dock. Mr. Bludau reported that Harbor Resources levies fees /charges for pier construction, annual harbor permits, parking for Balboa and Corona del Mar parking lots, tidelands leases, and rentals of slips and moorings. Mr. Bludau reported that the PIO's budget is $135,404 which is $25,000 less than the current year. He noted that there is no change in personnel, but they see a significant change in how she will be used. He reported that the City is looking at new franchise agreements that will hopefully provide more channels and more community programming, a community media center, robotic cameras in the Council Chambers, editing equipment in the back room, and more assistance from freelancers on community programming. He believed that her focus will be to get programming over the television. Council Member Heffernan asked if the bill for legal work on the franchise agreements will be coming out of this budget. Assistant City Attorney Clauson reported that, in the past, the City Manager's office has paid for these services. Mr. Bludau concluded by stating that the PIO will eventually be able to levy fees /charges from community media users who want to use the facilities that will be provided by the franchise agreements. Mr. Bludau reported that the Code and Water Quality Enforcement Division is a new budget division with a budget of $403,000. He stated that it will have 5.5 employees with 3 of them being new positions. He noted that Jim Sinasek will be the new division manager with a .5 department assistant, Cass Spence will still be the Planning /Code Enforcement Officer, and there will be two new Code and Water Quality ,Enforcement Officers and one new Water Quality and Watershed Specialist. He reported that this function has been moved from the Planning Department to the City Manager's Office, has an additional focus on water quality but all inspectors will be cross - trained in business license, code, refuse, etc. to have more eyes in the field, and the ramp -up period will be about six months in order to educate the public. He stated that citations will only be issued after the six month period unless it is discovered that there are violations people are knowingly making. He noted that they are envisioning placing a temporary 12 foot by 50 foot trailer on the City Hall lawn. He explained that the employees need to work in one location, the lawn is the last piece of property left to place the trailer, and the division should be close to the City Manager's office and not at one of the offsite locations. Mr. Bludau highlighted the Volume 56 - Page 162 City of Newport Beach Study Session Minutes May 27, 2003 INDEX organizational chart. He reported that the fees /charges they would levy include administrative citations of $100, $200, or $500, cleanup costs for spills where the City can identify the responsible party, and possibly a plan check fee for examining building plans for compliance with permit requirements. Mr. Bludau reported that some of the City Manager's office goals are whatever the Council's goals are, to effectively manage the budget and City operations, and coordinate the Top 10 priorities. Mr. Bludau reported that the new Human Resources Director will start June 9 and the purpose of the Human Resources Department has not changed.-,. He pointed out that the budget will decrease from $1.266 million to $1.230 million and they will still have 9 full-time positions, but no part -time positions. Regarding the Personnel Division, there are slight increases in salaries and benefits, but a $46,000 reduction in maintenance and operations. He indicated that the capital outlay is less because the office has cubed the space as much as it could be divided. He noted that there are 7 full-time employees in this division and no part -time employees. Regarding the Risk Management Division, Mr. Bludau noted that the salaries and benefits are up slightly, but maintenance and operations is down slightly with no capital outlay. He noted that there are 2 full-time employees with no changes envisioned. Regarding the Insurance Reserve Fund, Mr. Bludau reported that Workers Compensation will go from $1.8 million to $1.969 million and General Liability will go from $2.529 million to $3.560 million. Council Member Heffernan believed that Marsh was going to provide a statement that,-.since the City was going to pay a big step up, this would flatten out. Mr. Bludau indicated that the renewal will not take place until next March and the increase is in anticipation of what the market may do based on where it has gone since the last budget year. Risk Manager Farley clarified that Marsh does not hold the City's property insurance. She explained that the increases being seen across the country are from 35% to 70% for general liability and between 20% and 50% for property insurance. She stated that they took a conservative estimate and inputted numbers in the 35% range. Further, the City changed its property renewal from July 2003 to March 2004 and there is a slight increase to carry another eight months of coverage. She stated that, regarding general liability, this portion of the insurance marketplace has not stabilized and Marsh will most likely pass whatever 'costs the marketplace dictates to the City. Mr. Bludau stated that the Other Internal Service Funds remain unchanged. City Attorney Burnham stated that the City Attorney's office has had the same charge for the last 24 years. He reported that the City Manager asked that their professional/technical budget include $125,000 for airport related matters. He stated that, although it looks like there is a substantial increase in the budget, a lot of it is due to the transfer of funds that was funded out of the City Council budget last year. He noted that they would like to add a part -time contract attorney, Donna Bigi, who would work 20 hours a week. He stated that she has been paid out of the professional/technical fund for the past 12 months, has worked about 10 hours a week for the City Attorney's office, and has conducted a number of personnel investigations which were paid by Human Resources. He indicated that she is paid $55 an hour and believed that this is a bargain given her experience and ability. He noted that she will only receive PERS Volume 56 - Page 163 City of Newport Beach Study Session Minutes May 27, 2003 INDEX benefits. He added that they are also requesting an increase to their office supply budget since they anticipate software upgrades. Administrative Services Director Danner reported that Administrative Services is an internal department that mostly services other City departments. He proceeded to read the mission statement. He stated that the 2002 -03 estimated budget is $5.1 million with 49 full -time employees and 4.27 full-time equivalent employees; and the 2003 -04 estimated budget is $5.2 million with the same number of full-time employees but a few more hours of part -time help. He noted that the difference represents a 2.4% increase. He reported that there will be no new programs or employees. Mr. Danner stated that Administrative Services has five divisions: 1) Resource Management which handles budget management, investment management, and internal control, and consists of three staff members; 2) Fiscal Services which handles cash management, purchasing, warehousing and inventory control, printing and reproduction, postal services, remittance processing, and accounts payable, and consists of 12 plus 2.89 full-time equivalent employees; 3) Management Information Systems (MIS) which handles computer applications support, telecommunications, Geographic Information System (GIS), PC technical support, network management, and database management, and consists of 17 employees which was the number set by a study plus .5 full-time equivalent employees; 4) Revenue which handles municipal billings, intergovernmental transfers, licenses, regulatory permits, revenue development, and receivables and collections, and consists of 10 plus 1.33 full-time equivalent employees; and 5) Accounting which handles general accounting, payroll, property control and fixed asset tracking, audit coordination, debt administration, and financial reporting, and consists of 7 plus .75 full-time equivalent employees. Mr. Danner stated that they also handle debt service estimates (`Other Activities') which are moneys the City owes for financing Office Equipment Leases, the CDBG Loan, Balboa Yacht Basin Marina Loan, Newport Coast Assessment District Relief, Library COPS, Water Revenue Bonds, and Rolling Stock Leases. Mr. Danner reported that the major charges, fees, and taxes they handle include the issuance of over 350,000 Municipal Service Statements annually and larger billings like water charges ($18 -7 million), sewer fees ($3.1 million), fire medic memberships ($210,000), recycling fees ($831,000), franchise fees ($2.4 million), and rental/lease of City property ($10.5 million). He added that Administrative Services manages the four largest City tax revenue sources: Property Tax (almost $40 million), Sales Tax ($20.5 million), Transient Occupancy Tax ($8.36 million), and Business License Tax ($2.6 million). Regarding the sales tax, Mr. Bludau believed that the City was successful in making sure that the Hoag Hospital equipment purchases for the new wing took place in the City so we would get credit for it. Mr. Danner stated that this was part of the City's business outreach program which has been very successful. He noted that the four revenue sources represent over 45% of the City's total estimated 2003 -04 revenue of $155.9 million. Council Member Heffernan asked how a large boat in the harbor equates in the columns and if this is a tax the City collects. Mr. Danner reported that the City collects sales tax on vessels, as well as property tax. He confirmed that this is billed through the County in the property tax bill and is part of the City's secured bill. He noted that there are boats in the harbor that are taxed, but not Volume 56 - Page 164 City of Newport Beach Study Session Minutes May 27, 2003 INDEX by the City since it is determined by where the owner of the vessel resides. Mayor Pro Tem Ridgeway believed that the tax is determined by where the boat resides. Mr. Danner indicated that he will clarify this. Mr. Danner stated that Administrative Services has some major charges and fines it levies, including administrative fines /citations, parking citations, alarms /fines /renewals, tidelands billings, etc. He reported that the three departmental priorities are to 1) complete the consolidation and matrix development process for City leases and other income property; 2) complete the bill printing and mailing conversion to include consolidation of a number of currently separate billings into one statement; and 3) fully implement the Master Customer ID system. Regarding the first goal, he stated that they have been working on this for about a year. He reported that the City derives over $10 million in revenue from City owned or leased income properties, and they have been working with the City Manager's office and other departments to centralize the billing and administration of the leases. He indicated that they asked the City Attorney's office to abstract each of the agreements so they can prepare a spreadsheet of the various terms and adjustments. He reported that'. Ms. Bigi is doing this work for them. Mr. Danner reported that to do the jolt properly will require the addition of a full -time employee who will be responsible for all the leases. He stated that the employee should have a paralegal or real estate background, but they are open to anyone who can perform the job. He indicated that they have received two bids, ranging from $325,000 to $500,000 a year, to outsource the management of the properties; however, they believe the City can manage the properties in -house with one additional employee at an approximate cost of less than $100,000. Further;.if this can prevent errors and missed revenue opportunities, the position may more than pay for itself. He stated that this approach has been mentioned to the .Finance Committee and believed that they concur with the recommendation. He indicated that this item will come back to Council in'the near future at a study session and Council meeting for further discussion. In response to Mayor Pro Tem Ridgeway's question, Mr. Danner indicated that they have not factored in the price of the software program needed to administer this, but they have looked at two different software packages. Council Member Heffernan reiterated that the ultimate objective is to funnel all the money through Administrative Services so the master rent roll could be administered. Mr. Danner concurred, noting that all the revenue goes through his department, but the administration of the leases is spread to other departments. He believed that this needs a central department who will be responsible for it. Mr. Bludau pointed out that there would be some start up costs, but after that it will basically be personnel costs. Mayor Pro Tem. Ridgeway stated that, if the City can get a full business profile management of all its assets, the $10 million in revenue could be substantially more. However, the way things are administered now, he is not sure if the City knows where all the opportunities are for renegotiated rents and/or revenues. Police Chief McDonell provided copies of the PowerPoint presentation. He reported that the Police Department's budget is about $32,342,000. He noted that 84.23% of the budget is for salaries and benefits, 13.6% is for maintenance and operations, and .7% is for capital outlay. He stated that the increase from last year is $1.5 million (5.7 %), which represents a $1.3 million change in salaries and benefits due to adjustments based on the MOUs, salary step increases, and health care cost increases. He confirmed that the increases are Volume 56 - Page 165 City of Newport Beach Study Session Minutes May 27, 2003 INDEX not due to the Newport Uoast annexation. Yurther, the change also represents a $134,000 increase in the maintenance and operations account due to a $70,000 transfer from the personnel account to the ABLE program, $30,000 increase in the vehicle replacement fund, and $36,700 in the PRC contract adjustment. Chief McDonell reported that, regarding the capital outlay account, the replacement of the mobile video system (MVS) represents $225,000. He summarized by stating that salaries and benefits represents a $1.3 million increase, maintenance and operation represents a $134,000 increase, and capital outlay represents a $106,000 increase. Chief McDonell displayed the budget by division and stated that 70% of the budget goes toward frontline services to the community. He reported that 84.23% of the total budget represents direct costs associated with salaries and benefits ($27 million). He noted that there are 237 full-time employees (148 sworn and 89 non - sworn) and 44 part -time employees, and highlighted the full- time employee breakdown by divisions. He reported that they are not going to add any new positions. He noted that the handout also includes the overall organizational chart, division organizational charts, and division descriptions. In response to Mayor Pro Tem Ridgeway's question, Chief McDonell reported that 100% of his time is spent on administration versus field operation. He added that he does not spend enough time with the officers, but does interview people for positions, reassignments, and promotions. He stated that, of the 148 sworn officers, he believed that probably over 50% were hired after he started, but noted that the number of people he promoted is around 80% to 90 %. Regarding revenue, Chief McDonell reported that they generate about $4.8 million from the Orange County Public Safety Augmentation, alarm related revenues, parking fines, administrative citations, jail booking fees, ABLE, and school resource officers. He noted that their current competitive grants account for about $1.1 million in revenue to the City over several years. He stated that the grants have been awarded from State and Federal sources. He reported that an Officer Traffic Safety (OTS) grant of $175,000 pays for an officer position and equipment; another OTS grant of $76,000 pays for driving under the influence (DUI) enforcement; and the Universal Hiring Program grant of $750,000 is used to offset some of the annexation staffing. He noted that current non - competitive grants account for over $432,000 in revenue from State and Federal sources and are on a per capita basis. He reported that the grants include the Local Law Enforcement Block Grant to fund a portion of the Crime Prevention Program; COPS Funds that are part of the State budget ($150,000) to help fund the two positions in the Crime Suppression Unit and miscellaneous equipment; 2003 California Law Enforcement Equipment Program (CLEEP) as part of the State budget; and the 911 Upgrade for the dispatch center ($225,000). Council Member Heffernan stated that he heard when someone dials 911 in the future, the Police will know where they are. Chief McDonell indicated that the government is going to require this since calls are currently only narrowed down to 1,000 meters. He noted that the California Highway Patrol answer all the cellular calls and routes them based on where the person says they are. He indicated that part of the negotiations is how much will go to the local jurisdictions to absorb the work. He stated that it is realistic that this technology will be available in a couple of years. He noted that this will eventually find its way into the City's Police Department and into a budget item Volume 56 - Page 166 City of Newport Beach Study Session Minutes May 27, 2003 with a piece of revenue from the State. He agreed that the benefit will accrue to the residents. Chief McDonell reported that there is no real substantive program changes in the budget. He noted that the only approved adjustments were for an PRC /Oracle upgrade ($36,000) and MVS replacement ($225,000). In response to Council questions, Chief McDonell reported that the grant requires them to have four DUI checkpoints a year. He stated that the $76,000 covers this since they also use volunteers and Explorers. He indicated that he is not sure how much of the fine is returned back to the City but the City does receive some of it back. PUBLIC COMMENTS — None. ADJOURNMENT — at 6:00 p.m to Closed Session. The agenda for the Study Session was posted on May 21, 2003, at 3:15 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 56 - Page 167 INDEX CITY OF NMTOR,T BEACH City Council Minutes Regular Meeting �i May 27, 2003 - 7:00 p.m. INDEX INDEX STUDY SESSION — 4:00 p.m. CLOSED SESSION — 6:00 p.m. xxx+:,rx+:,rx+:,rxxxx+:,rxx A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Absent. Adams C. CLOSED SESSION REPORT —None. D. PLEDGE OF ALLEGIANCE — Council Member Proctor. E. INVOCATION — The Reverend Praveen Bunyan, St. James Episcopal Church. F. PRESENTATIONS Youth Council Annual Presentation. Aaron Israel, Chairman of the Newport Beach Youth Council, recognized the members of the Youth Council in attendance at the meeting. Using a PowerPoint presentation, Alex Greer, Vice Chairman, displayed the Youth Council's mission statement, purpose and responsibilities, accomplishments and future goals. Mr. Greer thanked the City Council for its involvement. Mayor Bromberg thanked the Youth Council for all they've done and encouraged the members to continue with their community participation. Presentation of APA Award of Merit for Visioning Process. Assistant City Manager Wood announced that the Orange County Section of the American Planning Association awarded the City with the 2003 Award of Merit for Planning Implementation in a Small Jurisdiction for the City's general plan visioning process. She thanked the City Council for its support and the members of the public that participated in the process. Proclamation declaring Sunday, June 1, 2003 as the 101h Annual Celebrate Balboa Island Day. Mayor Bromberg presented proclamations to Fire Chief Riley, Balboa Island Business Association President Sherry Drewry, Balboa Island Improvement Association President Craig Page and Little Balboa Island Property Owners Association Vice President Jeff Herdman, congratulating them for their community spirit and proclaiming June 1, 2003, Volume 56 — Page 168 City of Newport Beach City Council Minutes May 27, 2003 INDEX as the 10th Annual Celebrate Balboa Island Day. Mayor Pro Tem Ridgeway displayed the t -shirt received by the council members in recognition of the day. G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): e Mayor Bromberg stated that Council Member Nichols made an accusation at the Planning Commission meeting of May 22, 2003, that a planning commissioner, or planning commissioners, took a bribe on a particular issue. Mayor Bromberg stated that he didn't think this had ever happened in the City before. He requested that the City Attorney prepare a report on the testimony given by Council Member Nichols and that if the report establishes that Council Member Nichols did make the accusation with no factual basis, that a discussion on possible sanctions, including the issue of censure, also be included in the report. Additionally, Mayor Bromberg requested that the report include what action the City Council should, or could, take to avoid such conduct in the future. • Council Member Heffernan requested a report on the status of the refilling of the San Joaquin Hills Reservoir. Mayor Pro Tem Ridgeway stated that an Environmental Impact Report (EIR) is being circulated on the San Joaquin Hills Reservoir. • Council Member Nichols stated that he will be calling up the item mentioned earlier by Mayor Bromberg during the report of the Planning Commission agenda, Item No. 20, for discussion. Mayor Bromberg stated that it would not be a discussion item. He explained that it is only a report of what action was taken at the Planning Commission meeting. Council Member Nichols stated that he made his comments at the Planning Commission meeting because he felt that the action taken by the Planning Commission was illogical. He stated that he didnt mean to imply improper behavior or dishonesty by individual planning commissioners, but that the result of their decision did not seem to be equitable. City Attorney Burnham stated that it is inappropriate to discuss the substance of the comments made by Council Member Nichols at the Planning Commission meeting during this portion of the agenda. Mayor Bromberg added that if the Planning Commission item is called - up and comes back to the City Council, it would then be the appropriate time to discuss the matter further. Volume 56 — Page 169 City of Newport Beach City Council Minutes May 27, 2003 o Mayor Bromberg requested that a future agenda item address the restructuring of the Oil & Gas Field Operations Committee and the Coastal/Bay Water Quality Citizens Advisory Committee. • Mayor Bromberg announced that the appointments for the vacancies on the boards and commissions would be made at the City Council meeting of June 24, 2003. He stated that approximately 100 applications were received for the vacancies and that the Ad Hoc Appointments Committee will be interviewing about a third of those that applied. I. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOL UTIONS 1. Item removed from the Consent Calendar by Council Member Webb. 2. Item removed from the Consent Calendar by a member of the audience. ORDINANCES FOR ADOPTION 3. TOW TRUCK ORDINANCE. Adopt Ordinance No. 2003 -8. 4. AMENDMENT TO MUNICIPAL CODE SECTION 12.44.027, NEIGHBORHOOD ENHANCEMENT RESERVE. Adopt Ordinance No. 2003 -9. RESOLUTIONS FOR ADOPTION 5. RESOLUTION RELATING TO THE CITY S 2003 -04 LEGISLATIVE PLATFORM. Adopt Resolution No. 2003 -24 adopting a Legislative Platform for 2003.04 and authorizing the Mayor to issue statements and letters consistent with the Platform. 6. Item removed from the Consent Calendar by Council Member Webb. CONTRACTS AND AGREEMENTS 7. PROFESSIONAL SERVICES — BUDGET AMENDMENT. 1) Authorize the City Manager to enter into a $66,557 contract with Mr. Larry Paul of Tetra -Tech, Inc. for consultant services relating to Newport Bay; and 2) approve a budget amendment (BA -069) in the amount of $128,600 transferring revenue from unencumbered reserves to the City Manager's Professional and Technical Services (8080) Account. 8. 2002 -2003 CITYWIDE SLURRY PROGRAM — REJECT BID FOR (C- 3559). Reject the bid received for C -3559 and authorize staff to re- Volume 56 — Page 170 ryk "I Ord 2003 -8 Tow Trucks (70) Ord 2003 -9 Neighborhood Enhancement Reserve (40) Res 2003 -24 Legislative Platform (48) C -3614 BA -069 Harbor Projects (35140) C -3559 2002 -2003 Slurry City of Newport Beach City Council Minutes May 27, 2003 INDEX Volume 56 — Page 171 advertise the project. Program (38) 9. IRVINE AVENUE MEDIAN LANDSCAPING II (DOVER DRIVE C -3576 TO HOLIDAY ROAD) — AWARD OF CONTRACT (C- 3576). BA -070 1) Approve the plans and specifications; 2) award the contract (C -3576) Irvine Avenue to DMA Greencare Contracting for the total bid price of $189,995.56 and Median authorize the Mayor and the City Clerk to execute the contract; Landscaping 11 3) establish an amount of $18,954.44 to cover the cost of unforeseen (38/40) work; and 4) approve a budget amendment (BA -070) appropriating $62,530 from the unappropriated balance of the Circulation and Transportation Fund to Account No. 7261- C5100696. 10. OCEAN FRONT BEACH ACCESS WALKWAYS — AWARD OF C -3378 CONTRACT (C- 3378). 1) Approve the plans and specifications; BA -071 2) award the contract (C -3378) to Terra Pave, Inc. for the total bid price Ocean Front of $67,132 and authorize the Mayor and the City Clerk to execute the Beach Access contract; 3) establish an amount of $6,700 to cover the cost of unforeseen Walkways work; and 4) approve a budget amendment (BA -071) transferring (38/40) $13,832 from Tidelands Account No. 7231- CO310684 to Account No. 7231- C5100568. 11. 21sT STREET/NEWPORT BOULEVARD INTERSECTION C -3615 IMPROVEMENTS, APPROVAL OF PROFESSIONAL SERVICES 2181 Street / AGREEMENT WITH METROPOINTE ENGINEERS. Approve a Newport Blvd. Professional Services Agreement with Metropointe Engineers of Costa Intersection Mesa at a contract price of $87,330 and authorize the Mayor and City Improvements Clerk to execute the Agreement. (38) 12. Item removed from the Consent Calendar by Council Member Heffernan. 13. ANNUAL FINANCIAL AUDIT CONTRACT RENEWAL. Authorize C -3350 the City Manager to renew the contract with the CPA firm of Conrad Annual Financial and Associates, L.L.P. to perform the City's annual financial audit for Audit the fiscal years ending June 30, 2003, 2004, and 2005. (38) 14. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT C -3617 WITH DAVID VOLZ DESIGN FOR GRANT PROPOSAL WORK BA -073 AND BUDGET AMENDMENT FOR MORNING CANYON/ Morning Canyon/ WATERSHED PROJECT PLANNING. 1) Approve a Professional Watershed Services Agreement for Newport Watershed Grant Proposal Services Project with David Volz Design (DVD) in the amount of $39,906 and authorize (38/40) the Mayor and the City Clerk to execute the Agreement; and 2) approve a budget amendment (BA -073) appropriating $64,906 from the unappropriated balance of the General Fund to Account No. 7014 - 05100711 Morning Canyon/Watershed Projects. MISCELLANEOUS ACTIONS 15. 2003 -04 PROPOSED BUDGET HEARING; 2003 -04 Budget and APPROPRIATION LIMIT HEARING. Schedule a public hearing of Appropriation the City's Proposed Budget and Appropriation Limit for the 2003 -04 Limit Hearings Volume 56 — Page 171 City of Newport Beach City Council Minutes May 27, 2003 fiscal year on June 10, 2003, at 7:00 p.m. in the City Council Chambers; and direct the City Clerk to publish a notice of said hearings. 16. UNSCHEDULED VACANCY ON THE PLANNING COMMISSION. 1) Accept resignation of Shant Agajanian (Planning Commission) effective May 19, 2003; 2) waive noticing and appointment requirements pertaining to unscheduled vacancies as outlined in City Council Policy A -2; and 3) confirm the direction provided by the Ad Hoc Appointments Committee to incorporate the appointment for this vacancy with the appointments to fill the scheduled vacancies. 17. APPOINTMENT OF COMMITTEE TO DISCUSS LEASE TERMS FOR MARINAPARK PROPERTY WITH SUTHERLAND TALLA HOSPITALITY. Confirm Mayor's appointment of Mayor Pro Tem Ridgeway and Council Member Heffernan. 18. COMMENTS ON DRAFT EIR ON IRVINE RANCH WATER DISTRICT'S NATURAL TREATMENT SYSTEM PROGRAM. Approve and authorize the Mayor to send comment letter. 19. LEGAL PUBLICATIONS FOR ONE -YEAR CONTRACT COVERING FISCAL YEAR JULY 1, 2003 TO JUNE 30, 2004. Authorize the City Clerk to publish a notice advertising for bids to be received on or before the hour of 4:00 p.m. on Wednesday, June 11, 2003 for a one -year contract covering the publishing and printing of legal notices, or other material required to be published and circulated in the City of Newport Beach. Motion by Mayor Pro Tern Rideewav to approve the Consent Calendar, except for those items removed (1, 2, 6 and 12). The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Adams J. ITEMS REMOVED FROM THE CONSENT CALENDAR I. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF MAY 13, 2003 AND SPECIAL MEETING OF MAY 21, 2003. Council Member Webb clarified his statement on Page 121 of the Study Session minutes. He stated that what he requested was an estimate for budget consideration on the installation of toilet seats at all public restrooms. Jim Hildreth stated that the portion of the Balboa Island Bridge that he brought to the City Council meeting of May 13, 2003, isn't described well in the Regular Meeting minutes. Further, on Page 129, he stated that Volume 56 — Page 172 INDEX (40) Planning Commission Unscheduled Vacancy (24) Marinapark Property Lease Terms Committee (24) IRWD Natural Treatment System (51) Legal Publications 2003 -2004 (32) City of Newport Beach City Council Minutes May 27, 2003 he was only speaking of one individual who was required to put in a stainless steel grounding rod. He stated that the minutes need to be recorded correctly. He additionally noted that when he discussed the municipal code section, he stated that the City is to keep and maintain pier permit records, and when mentioning the Harbor Resources Director, he mentioned him by name, Tony Melum. Mr. Hildreth stated that at the conclusion of his comments on Page 140, the Mayor's statement about revelers is not recorded either. He noted that some took offense to the statement. Motion by Mavor Pro Tem Ridgeway to waive reading of subject minutes, approve as written and order filed. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Adams 2. READING OF ORDINANCES AND RESOLUTIONS. Jim Hildreth stated that the general public expects a short excerpt of the agenda items to be stated at the meetings. He requested that the highlights of what is being presented to the City Council be read. Motion by Mavor Pro Tem Ridgeway to waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Adams 6. FOURTH OF JULY STREET CLOSURE RESOLUTION Council Member Webb noted that the resolution includes Back Bay Drive as one of the authorized streets that may be closed. He requested that a recital be included in the resolution that explains why Back Bay Drive is included, and that he doesn't understand why it might need to be closed since it's an isolated area. Mayor Pro Tem Ridgeway stated that it's a queuing location for vehicles on the 4�h of July and is included as a safety measure. Police Chief McDonell added that it is not intended that the closure will occur, but the authority needs to be in place in case it is determined that Volume 56 — Page 173 INDEX Res 2003 -25 401 of July Street Closure (70) City of Newport Beach City Council Minutes May 27, 2003 a closure is warranted. He cited fire danger as an example of requiring the need to close Back Bay Drive. Motion by Mayor Pro Tem Ridgeway to adopt Resolution No. 2003 -25 authorizing the temporary closure of Seashore Drive, Newport Boulevard and Balboa Boulevard, and selected feeder streets. Council Member Webb asked if a recital could be added that provides the reasons for needing to close Back Bay Drive. Mayor Pro Tem Ridgeway stated that the recital already provides reasons for the closures and doesn't designate by geographical area. City Attorney Burnham stated that he could add language incorporating the Police Chiefs remarks and a discussion of the roadway. Amended Motion by Mayor Pro Tem Ridgeway to adopt Resolution No. 2003 -25 authorizing the temporary closure of Seashore Drive, Newport Boulevard and Balboa Boulevard, and selected feeder streets, as amended to include a recital discussing the reasons for a possible closure of Back Bay Drive. The amended motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Adams 12. AWARD OF LANDSCAPE MAINTENANCE AGREEMENT FOR BONITA CANYON SPORTS PARK. Council Member Heffernan stated that the project has been plagued with contractor problems. He stated that his concern for bringing in another contractor to perform the ongoing landscape maintenance is that the City might release or compromise its rights to make a claim against the contractor to require that any defects be corrected. General Services Director Niederhaus stated that staff really has no other choice than to recommend an assumption of maintenance and that it would be in the best interest of the City to have direct control over the maintenance to insure that the fields will be ready for use in the Fall. Council Member Heffernan recalled that there were some mechanical defects with such items as sprinkler valves and backflow devices. City Manager Bludau stated that the problems have been fixed and that the items also come with a warranty. He added that the City feels comfortable taking over the maintenance and that it won't waive any liability issues that might arise in the future. In response to Council Member Webb's question, General Services Director Niederhaus stated that the City will assume the maintenance of the landscaping on June 1, 2003, except for the west area, which will be assumed a couple months later under the proposed contract. Volume 56 — Page 174 INDEX C -3616 Landscape Maintenance Bonita Canyon Sports Park (38) City of Newport Beach City Council Minutes May 27, 2003 INDEX Jim Hildreth stated that the contractor who failed to meet their obligations should have been named in the staff report. Motion by Mavor Pro Tem Ridgeway to approve the agreement with TruGreen LandCare to provide landscape maintenance of Bonita Canyon Sports Park at an annual cost of $116,736 for the entire park; and authorize the contract to take effect June 1, 2003 for services to commence only at the completed areas of the Park (mid and east areas). The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Adams K. PUBLIC COMMENTS Richard Spane stated that he also spoke at the City Council meeting of May 13, 2003, regarding the $4 million grant to the Airport Working Group (AWG). Mr. Spane stated that the City's reports have indicated that there were serious problems with the way the money was spent, that some individuals were paid twice for the same job and that moneys were commingled. He stated that the citizens were promised an audit by November 2002, and that it was said to be a requirement. He expressed his understanding that several council members do not want an audit, but Mr. Spane requested that an audit be done. He stated that his next step will be to see if there are any indictable situations. City Attorney Burnham stated that the report that was prepared may not have been a formal audit, but was a thorough analysis of the grant expenditures. He added that some minor issues were reported but overall, the funds were used consistent with the terms and conditions of the grant. City Attorney Burnham stated that the grant does not have an expiration date and the grant funds were to be used by AWG for a wide variety of purposes related to transportation in Orange County. He disagreed with Mr. Spane's characterization of the report, and felt that the report identified how the funds were spent. City Manager Bludau added that the report was a compliance audit, warrants were checked and there was no suspicion that the money was used unwisely or illegally. Jim Hildreth stated that the house at 109 Grand Canal was built without a building permit, the owner was cited and given certain criteria to follow. Mr. Hildreth stated that the owner complied with the criteria and was able to build his house. Additionally, Mr. Hildreth stated that the government classifies a disabled individual as one who cannot lift ten pounds, cannot stand and walk for two hours, and cannot sit for six hours. He stated that he doesn't qualify as a disabled individual, but that he is physically handicapped. He noted that a Volume 56 — Page 175 City of Newport Beach City Council Minutes May 27, 2003 110 11 person who is shown to have a physical impairment is allowed certain variances by the City. He specifically noted that the relocation of the ladder at the southwest end of the Grand Canal as being unjustified. Mayor Bromberg stated that the issue of the shore mooring, referred to by Mr. Hildreth, was previously considered by the City Council. He stated that it was decided not to move the shore mooring to a location that was readily accessible. Mayor Bromberg requested that the issue be revisited. • Dolores Otting suggested that the public have access to the audio tapes of the Planning Commission meetings. She referred to various items on the current agenda that involved the expenditure of money, and stated that money should be spent that would allow the public to get a copy of the Planning Commission meeting tapes. She requested that this be considered during the budgeting process. Mayor Bromberg stated that he knows the issue has been addressed before, and was brought up again after the recent Planning Commission meeting. He reported that the tape of that meeting has been copied and a transcript is being prepared, but that there is a compatibility problem with the equipment that is used. He requested that research be done to find a system that will alleviate the compatibility problem. Mayor Pro Tem Ridgeway agreed that the compatibility problem is unacceptable. He requested that the Planning Department make their equipment compatible with the City Clerk's office. City Clerk Harkless stated that it is not a compatibility issue between the two departments, but a result of the equipment that is used in the Council Chambers, which is multi- channel and records at a different speed. She added that staff has researched the issue, and that the remedy is expensive and time consuming. Mayor Bromberg requested that the issue be looked at again. Council Member Heffernan asked why the recording of the meetings is so difficult. City Clerk Harkless stated that it is partly due to the fact that the system has to be tied into every microphone in the Council Chambers. • Brain Clarkson stated that at the City Council meeting of May 13, 2003, it was suggested that a town hall meeting be held to discuss the 41h of July issues and possible solutions. He stated that he has had conversations with the City Attorney and the Police Chief about the details of setting up the meeting. Mr. Clarkson stated that commitments are pending from some of the council members, and expressed his support for holding the meeting. City Attorney Burnham stated that he has been in contact with Mr. Clarkson, that it will be a City- sponsored town hall event and that anyone from the public will be invited to attend. Pending confirmation from Hoag Hospital, which has been selected as the site for the meeting, Volume 56 — Page 176 City of Newport Beach City Council Minutes May 27, 2003 City Attorney Burnham stated that he only contacted the rest of the council members earlier in the day. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Status report — Ad Hoc General Plan Update Committee (GPUC). Mayor Bromberg reported that GPUC did not meet since the last City Council meeting. Status report — Local Coastal Program Certification Committee. Mayor Pro Tem Ridgeway reported that there was also nothing new to report in regard to this committee. Status report — Newport Coast Advisory Committee. Assistant City Manager Kiff reported that the previous week, the Fire Department posted the fuel modification zones that still have potential hazards in the event of a wild land fire. He stated that a meeting was held with the Newport Ridge Homeowners Association Board, who was very receptive to do something quickly. Council Member Heffernan added that the Fire Department surveyed the Newport Ridge area to ascertain current conditions. Once that was completed, notices were posted and enforcement began. He stated that, for public safety reasons, it is important for the Fire Department to be proactive. Status report — Mariners Joint Use Library Ad Hoc Steering Committee. Mayor Pro Tem Ridgeway reported that colors and materials were selected, and a cost estimate will now be performed. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 20. PLANNING COMMISSION AGENDA FOR MAY 22, 2003. Assistant City Manager Wood stated that the first item on the Planning Commission agenda involved an amendment to an existing use permit to increase the number of eating and drinking establishments at the new Bluffs Commercial Center. The item was approved by the Planning Commission. The second item was a request to allow an increase in the number of seats, and the sale of beer and wine at E1 Tarasco. The Planning Commission approved the request and also allowed the restaurant to remain open until 2:30 a.m. Assistant City Manager Wood stated that the next item on the agenda involved a variance for the Ciraulo residence on South Bay Front. She stated that the circumstances were unusual because the construction had gone beyond what the building permit allowed and the additional construction on the third level required a variance for exceeding the height limit. She stated that the Planning Commission recognized that the property owner was unaware that unauthorized construction took place and that removing the unauthorized construction would have significant engineering and financial consequences. The findings, however, that are required for a variance couldn't be made, so the Planning Commission denied the variance. Volume 56 — Page 177 INDEX Planning Commission (68) City of Newport Beach City Council Minutes May 27, 2003 She stated that the final item on the agenda was a review of the Capital Improvement Program (CIP), which was found to be consistent with the general plan and other local policy documents. Council Member Nichols requested that the Ciraulo residence item be called up. Council Member Proctor asked if recusal is obligatory since the council member that is calling up the item testified at the Planning Commission meeting and has a position on the item. City Attorney Burnham stated that the issue is being researched. Mayor Bromberg requested that the property owner not be prejudiced or compromised. City Attorney Burnham stated that recusal is not required with respect to the call up. The issue would only arise in the context of the hearing itself. N. PUBLIC HEARINGS 21. CODE AMENDMENT CA 2003 -004 — ABO AMENDMENT (PA 2003 -090) - AMENDS THE ALCOHOLIC BEVERAGE OUTLET (ABO) ORDINANCE (CHAPTER 20.89) TO PROHIBIT OFF -SALE ALCOHOLIC BEVERAGE OUTLETS FROM SELLING OR STORING ALCOHOLIC BEVERAGES OUTSIDE OF THE EXTERIOR WALLS OF THE ESTABLISHMENT. Mayor Bromberg opened the public hearing. Brian Clarkson stated that Free Newport opposes the amendment because the City Council is attempting to dry up West Newport on the 4th of July and the residents of West Newport don't want it. He stated that alcohol is not an illegal drug and prohibition only showed an increase in crime, resentment towards police officers and higher alcohol consumption rates. Mr. Clarkson added that West Newport shouldn't be treated differently than the rest of the community. He stated that the petition that was presented at the City Council of May 13, 2003, included opposition to an alcohol storage ban. Mayor Bromberg stated that the petition that was presented wasn't really a petition, and that the amendment that is being proposed is only requiring alcoholic beverage outlets to sell their alcohol within the walls of the establishment. Mayor Bromberg read an e-mail he received from a citizen in support of the City Council's actions to attempt to control the 4th of July mayhem on the Balboa Peninsula. Council Member Proctor stated that the amendment has nothing to do with prohibition, and is only preventing the sale of alcohol outside of establishments, such as from trucks in the parking lots. Jim Hildreth stated that it appears that the City Council is punishing the businesses. He stated that businesses have limited floor space and Volume 56 — Page 178 INDEX Ord 2003 -10 PA2003 -090 Alcoholic Beverage Outlet (ABO) Amendment (68) City of Newport Beach City Council Minutes May 27, 2003 the City should support the opportunities for businesses to make money. He stated that it's not in the City's best interest to pick on the residents or businesses in the City. He stated that the visitors to the City that are causing the problems should be the ones to carry the blunt. Mr. Hildreth stated that the residents want to have a good time and the businesses want to succeed, and only those causing the problems should be reprimanded. He stated that a great deal of revenue is received by the City for Driving Under the Influence (DUI) arrests. Dolores Otting confirmed with City Attorney Burnham that the amendment would apply to all of the liquor stores in the City. Ms. Otting stated that she didn't understand why such an amendment would be needed or why alcoholic beverage outlets feel they should be entitled to sell alcohol from their parking lots. She stated that she is in support of anything that limits the amount of alcohol consumption by minors. Mike Doyle asked if the amendment is directed at offsite sale or storage of alcohol. City Attorney Burnham stated that it prohibits the storage or sale of alcohol outside the exterior perimeter of the structure. Alcohol storage and sale is permitted within the establishment. He added that the amendment only applies to the 41h of July and the two hours following. Hearing no further testimony, Mayor Bromberg closed the public hearing. Motion by Mayor Pro Tem Ridffewav to adopt Ordinance No. 2003 -10. Council Member Proctor reiterated that the problem has been with semi - trucks parking and storing alcohol in the parking lots. Alcohol sales can still occur within the establishment. He stated that this will primarily affect visitors to the area who don't arrive until the 4th of July. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Adams O. CONTINUED BUSINESS 22. APPOINTMENTS BY THE CITY COUNCIL TO ENVIRONMENTAL QUALITY AFFAIRS CITIZENS ADVISORY COMMITTEE (EQAC) AND THE AVIATION COMMITTEE. Council Member Webb stated that he is waiting to talk with a potential appointee who is currently out of town. Volume 56 — Page 179 INDEX EQAC /Aviation Committee Appointments (24) City of Newport Beach City Council Minutes May 27, 2003 With the absence of Council Member Adams, Mayor Bromberg stated that the item would be continued to the City Council meeting of June 10, 2003. 23. CITY HALL FACILITIES SCHEMATIC DESIGN — APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH GRIFFIN HOLDINGS, INCORPORATED (contd. from Study Session of 4/08/03). Public Works Director Badum reported that the item was addressed at the Study Session on April 8, 2003. The direction was to provide more information regarding economics, potential revenue opportunities and potential increases in productivity, and that staff is recommending that an agreement for the schematic design of the City Hall facilities be approved. Roger Torriero stated that he is a principal of Griffin Structures, the program managers for the City Hall, parking structure and fire station projects. Using a PowerPoint presentation, Mr. Torriero displayed a list of the specific questions asked by the City Council at the meeting of April 8, 2003, and stated that his presentation would cover these areas. In regard to a question about the expected operational savings from new facilities, he stated that there would be cost savings resulting from energy efficiencies and reduced maintenance costs. Mr. Torriero noted that a comprehensive and detailed analysis of the issues he would be discussing is on file in the City Clerk's office. Continuing with the presentation, Mr. Torriero stated that a new building is estimated to save a minimum of 17% in energy and operating costs over the first five years, and $3,750,000 over a 40 -year building life. Maintenance costs would be reduced from the current $4 per square foot per year to $1.25, or a savings of $3.7 million over a 40 -year building life. Mr. Torriero stated that the current buildings and the layout of the buildings create inefficiencies and productivity losses. It is estimated that productivity could be improved by approximately 15 %, or an effective value of $2 million annually. He stated that another immediate benefit of a new facility design is the revenue potential from the proposed parking structure, which is estimated to be $300,000 in the first year for off -hour and weekend uses. He stated that public visitors will also be affected by a new design and noted that actual counts by staff shows that there are approximately 2,500 public visits per week to City Hall, which is projected to be over 130,000 visits per year. Mr. Torriero stated that three alternative concepts were presented at the April 8, 2003, meeting, and a suggestion was made to consider a lot line adjustment with the adjacent property owner. Mr. Torriero displayed an aerial photo of the existing site and a diagrammatical layout of the recommended alternative using the existing site configuration. He displayed a fourth concept, which showed the impact on the layout if a proposed land swap with the adjacent property owner were successful. He also displayed two alternative site plans, assuming Volume 56 — Page 180 INDEX C -3502 City Hall Needs Assessment (38) City of Newport Beach City Council Minutes May 27, 2003 a successful land swap. INDEX Mr. Torriero stated that it is recommended that the City Council advance the planning and design, through the schematic design phase only, of the overall project. This would provide the detailed information needed to make an educated decision on whether to move forward with the construction of a new City Hall. He stated that it is also recommended that the City Council authorize staff to engage the adjacent property owner in non- binding discussions regarding a land swap and direct the project team to schedule a series of community workshops to solicit input regarding the planning and design of the project. Mr. Torriero stated that the final recommendation is to direct staff and the project team to present the final schematic design for the overall project and related schematic cost estimates to the City Council before the end of January 2004. Council Member Heffernan stated that the City as a whole still hasn't been looked at. Other locations haven't been considered to determine if City Hall could be in a better location. He added that there is also the consideration of replacing the existing buildings while having to do business at the same time. Council Member Heffernan understood from the last meeting that Griffin Structures wasn't directed to look at other sites, but it might have been more prudent to do so. Mr. Torriero noted that much of the information that has been developed such as the needs assessment, the programming and cost estimates were not site specific and could be applied elsewhere. Mayor Pro Tem Ridgeway requested that Mr. Torriero discuss the placement of city facilities in areas of need. Mr. Torriero stated that West Hollywood provides an example, where a conscientious decision was made to place the City Hall at the far end of the City, away from a possibly more popular location. He stated that it was done to stabilize an area from further decline and ended up being very successful. Council Member Heffernan stated that if the replacement of the existing City Hall is a redevelopment project, then it should be called that and listed as a factor. City Manager Bludau stated that when he began his discussions with Mr. Torriero, he felt that the first question to answer was whether or not a new City Hall was needed. He felt that if location were a part of that discussion, it would be more difficult to answer. Mayor Bromberg stated that he felt there was a consensus to keep City Hall in its current location since this is where the City began, but that a motion can be made to have other locations explored. In regard to the consideration of a new City Hall, Mayor Bromberg stated that the current facility is archaic, is busting at the seams and should be replaced. He added that the Fire Station is not safe and should also be replaced. Mayor Bromberg stated that Newport Beach is the most affluent city in Orange County, yet has the rattiest City Hall. He didn't feel that people coming to City Hall should have to pay for parking, however. He stated that a new City Hall will create efficiencies for the employees and will result in better service to the citizens. Volume 56 — Page 181 City of Newport Beach City Council Minutes May 27, 2003 INDEX Council Member Nichols agreed with the land swap and the squaring off of the property. He stated that working with the adjacent property owners might be useful and could make the project a better one. Mr. Torriero stated that the entire area could be reconsidered and that a town square environment might be possible. He stated that it would be wise to explore an integration of the sites, which is what the next phase of the project would do. Council Member Proctor stated that the issue of needing more space at City Hall is not a new one. He asked if another site would be less expensive. Mr. Torriero stated that the only differential in cost would be the temporary facilities that would be used during demolition and construction. He stated that another site could create unknown costs, such as acquisition and geotechnical subsurface soil conditions. Council Member Heffernan asked if all tests had been done on the current site. Mr. Torriero stated that Phase I yielded no known or hazardous materials and the proposed project would be two stories, like the current facilities. Council Member Heffernan stated that it has been determined that the current facilities are seismically deficient. He asked how this would be countered with new facilities. Mr. Torriero stated that it is countered by means and methods of construction and assemblage. He stated that newer seismic codes deal with strength of materials, and methods of joinery and assembly. Council Member Nichols noted that the area houses a primary fault line. Mr. Torriero stated that the proximity to the fault line anywhere within the City would not change greatly. He added that the fire station should function as an essential facility and survive a seismic event, and that all of the existing buildings at the City Hall site are seismically deficient. Council Member Webb agreed that there isn't enough room at City Hall, but he didn't know if it was necessary to tear everything down and start over again. He stated that the staff comments that were included in the report expressed a need for more space, a need to group the departments together, a need for more conference space and a desire not to be in one open floor plan with cubicles. Council Member Webb stated that he likes old buildings and the opportunity to walk outside, such as the current layout provides, and has learned that the seismic problems may not be as great as have been described. He stated that the City might be able to get by with reconstructing only some of the buildings. He specifically suggested that Building D be replaced, a land swap be worked on to make room for a new parking structure, and a remodeling of the utilities in Building B be done. He stated that he didn't feel comfortable with an entirely new City Hall facility. City Manager Bludau agreed that the City could get by with remodeling but that at some point, a difficult decision is going to have to be made about replacing all of the buildings. He stated that it shouldn't be done just to improve efficiency, although with 130,000 people visiting the complex per year that aren't City employees, improving efficiency in Volume 56 — Page 182 City of Newport Beach City Council Minutes May 27, 2003 INDEX service to the public is important. He stated that providing safe, efficient buildings warrants the project being looked at further. Council Member Nichols stated that a joint use high -rise parking structure should be pursued with the adjacent property owners. He stated that if this could be negotiated, it would make the site more valuable to develop as a proper City Hall. He suggested that this be done first, and that it could act as a stimulus for the area and solve the existing parking shortage problem. Mr. Torriero stated that alternate site plans were looked at in the original presentation, but the other scenarios didn't improve efficiency or replace the old buildings. He stated that there is not enough space to build a new parking structure without removing some of the existing buildings, and that it needs to be done as part of a comprehensive plan. Jim Hildreth stated that moving City Hall to another location, such as "Fascist Island ", might work, but that the public would rather have City Hall remain where it is. He stated that a nearby church already uses City Hall parking spaces for parking on Sundays, and that City Hall is in a community location and viable for parking. He stated that no one is going to want to pay for parking, however. He stated that surveys have indicated that aboveground utilities are safer than underground utilities in an earthquake, so the aboveground City Hall must be safer. He stated that there is a fault line, but that there is a fault in City Hall too. He stated that the few trees that would be sacrificed for the new development could cause an uprising, and suggested that the parking structure be angled or incorporated with the fire station. Mr. Hildreth stated that there are different ways to go about creating a solution, but feels that City Hall should remain where it is since it is a historical landmark. John Dobrott commended the City Council for considering a new City Hall. He stated that the issues that have been discussed are items that need to be considered and he appreciates the City Council tackling the problems. He stated that it shows that the City's business is being conducted as a business and efficiencies are being considered, as is done in the private sector. Motion by Mayor Pro Tem Ridgeway to 1) receive and file report titled, "Comparisons of Continued Occupancy of Existing City Hall vs. Effective Costs of Occupancy in a Replacement City Hall"; 2) approve a Professional Services Agreement with Griffin Holdings Incorporated, for the not to exceed price of $578,185 and authorize the Mayor and the City Clerk to execute the Agreement; 3) approve a budget amendment (BA -072) appropriating $253,185 from the balance of the General Fund Reserve for Capital Improvement to Account No. 7011- C2910545; 4) authorize staff to engage discussions with the adjacent property owner regarding a lot -line adjustment; and 5) direct staff to schedule a series of community workshops regarding the planning and design of the project. Mayor Pro Tem Ridgeway stated that City Hall is located in his district, which has been in a decline for years. He also noted the comments by Volume 56 — Page 183 City of Newport Beach City Council Minutes May 27, 2003 INDEX the City Manager about the number of people that are serviced per year. Council Member Proctor agreed that it's time to deal with the issue and improve service. Mayor Bromberg agreed that the project is worthy of being looked at further. Council Member Heffernan stated that, after looking at the upcoming budget, he can't support the motion. He stated that although efficiency may be improved, it will most likely not result in a decrease in staffing and that government shouldn't get bigger, it should get smaller, particularly when looking at the State's budget deficit, an increase in various expenditures and reductions in revenue. He stated that a new City Hall shouldn't be built in such economic times and he doesn t agree with the City taking on such an expenditure at this time. Mayor Bromberg stated that it is responsible to do this at this time. He stated that more space is needed and efficiency would be improved. Council Member Nichols stated that he is ready to support a new parking structure and new facilities if looked at incrementally, but doesn't feel that $30 million shouldn't be spent on an entirely new building at this time. Mayor Bromberg pointed out that the motion is not approving the expenditure of $30 million. Council Member Nichols expressed his understanding of the motion, and that it would further study and do the design for a new City Hall at the existing site. Mayor Bromberg stated that it is only to study if the City should proceed further. Council Member Nichols stated that he would prefer to proceed with the parking structure, do the design and begin negotiations with the adjacent property owner. He stated that this will make a big difference on the usability of the site. Mayor Pro Tern Ridgeway reminded Council Member Nichols that such a structure can't be designed and built without demolishing existing buildings. He agreed that incremental would be great if it could be done, but it can't. He stated that the town square idea is a good one and the action before the City Council is to allow Mr. Torriero to begin the negotiations and studies needed to achieve this. He stated that the action is only for the schematic design and is appropriate, and that it would be unfortunate not to move forward at this time. Council Member Webb agreed that more space is needed, but expressed his concern that public opinion might not end up supporting the proposed alternative. He asked if the contract could be structured so Volume 56 — Page 184 City of Newport Beach City Council Minutes May 27, 2003 INDEX that public input could be received prior to spending the $500,000, so that a design concept could be looked at that is supported by the community. Mr. Torriero stated that the process will be one of participatory planning, and will involve the community and the vested groups from the beginning. He stated that an opportunities and constraints analysis will be conducted, which will help to present the information and the facts and educate those who will be participating in the process. He stated that there isn't a need to amend the contract, since this is the process that would already be followed. He pointed out that the contract represents approximately 1.5% of the cost of the overall project. He stated that the community needs to be educated and involved in the process, and that the process will provide the City Council with the information needed to make a decision. Council Member Webb stated that he is still concerned that an entirely new City Hall is the only option being studied. City Manager Bludau stated that of the five recommended actions, the first, fourth and fifth recommendations appear to be supported by all of the council members. He stated that the third recommendation approves a budget amendment using money that is in a reserve account for public facilities. He stated that the second recommendation approves a contract and suggested that it could be structured to insure that the fourth and fifth recommendations are conducted first, with City Council approval needed prior to moving forward further. Mayor Bromberg stated that it should be determined if Mr. Torriero is agreeable to such a suggestion. Substitute motion by Mayor Pro Tem Ridgeway to continue the item to the City Council meeting of June 10, 2003. Mayor Pro Tem Ridgeway stated that Mr. Torriero should be allowed to quantify the impact of the suggestion. He added that it will certainly be proven that the community supports a new City Hall. Council Member Heffernan stated that he doesn't feel that the citizens in his district would support a new City Hall, or that they visit City Hall at the rate indicated earlier. He added that he doesn't feel that the citizens support government getting bigger or spending $30 million with the current economy. Dolores Otting agreed with the comments of Council Members Heffernan and Webb. She stated that she doesn't believe a new building will be more efficient, unless a Starbucks is placed in City Hall. She expressed her support for the existing buildings, and their charm and quaintness. She agreed that parking is lacking, but doesn't feel that there is support in the community for a new facility. Brain Clarkson asked if proposals from other developers were considered. Mayor Pro Tem Ridgeway stated that a bid process was followed for Volume 56 — Page 185 City of Newport Beach City Council Minutes May 27, 2003 determining the needs assessment and schematic designs for City Hall, that five companies competed, and the lowest and most responsive bid was Griffin Structures. The substitute motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Adams P. CURRENT BUSINESS 24. COUNCILMANIC RE- DISTRICTING. Mayor Bromberg stated that the Councilmanic Re- districting Committee is comprised of himself and Council Members Heffernan and Webb. Planning Director Temple stated that the City Charter requires that the City Council look at district alignment on a periodic basis, and that the districts be close to equal in population and geographically contiguous to the extent possible. Planning Director Temple stated that a re- districting plan was adopted in 2002 when the Newport Coast and Newport Ridge area was annexed. It placed the entire area in District 7. She stated that prior to the annexation, the approximate average size of the districts was 10,000 people. With the Newport Coast and Newport Ridge annexation, the future annexations of East Santa Ana Heights, Bay Knolls and the Emerson Tract, and the potential future annexation of West Santa Ana Heights and Costa Mesa Area 7, the approximate average population per district is 11,700 people. Planning Director Temple displayed the committee recommendation and pointed out some of the changes to the district lines. She stated that District 1 expands to the west, District 2 expands across Newport Boulevard, District 3 encompasses the west side of Newport Bay, District 4 includes the head of Upper Newport Bay and the area to the east, District 5 expands into the Irvine Terrace area, District 6 would include Newport Coast and District 7 would include Newport Ridge. She stated that this keeps the Harbor View area in District 7 and the older part of Corona del Mar in District 6. Planning Director Temple also displayed the alternative recommendation, which keeps all of Newport Coast and Newport Ridge in District 7, and expands District 6 to the north. Mayor Bromberg noted that Balboa Island remains in District 5. Council Member Proctor commended the committee and their recommendation. Council Member Nichols suggested a minor deviation in the alignment that would place the Buck Gully area in the same district. Planning Volume 56 — Page 186 INDEX Ord 2003 -11 Councilmanic Re- districting (33) City of Newport Beach City Council Minutes May 27, 2003 IIN11 Director Temple stated that further adjustments would need to be made to maintain population equity. Mayor Bromberg confirmed with Planning Director Temple that Bonita Canyon Sports Park is in District 7. Council Member Webb confirmed with Planning Director Temple that all of the senior housing in the area of Poppy Drive is within District 6. Al Willinger stated that the Newport Coast Committee of 2000 spent over three years in negotiations, which resulted in Newport Coast being in one district and the possibility that it could change in the future based on population needs. He also noted that Newport Coast includes Newport Ridge, and the Newport Coast Advisory Committee (NCAC) recently voted in support of maintaining the entire area in one district. He stated that it is an essential ingredient to the development of the community and requested that it be considered by the City Council. Mayor Bromberg stated that realigning the districts will only change the political district lines and who the council representative is. The community will not lose its designation or community input, and the homeowner associations and zip codes will not change. He stated that the community might end up with two council members, which could be looked at as a positive thing. He stated that the committee was sensitive to community issues and concerns. Motion by Council Member Webb to adopt the Councilmanic districts as recommended by the Council subcommittee, introduce Ordinance No. 2003.11 changing and redefining the boundaries of Councilmanic districts and pass to second reading on June 10, 2003. Mayor Pro Tem Ridgeway stated that the agreement with the Newport Coast and Newport Ridge area was not to split the area into more than one district until after the first election cycle. He stated that the area is still one community, but with two council representatives. Council Member Heffernan noted that there is a sense of community in the area and a lack of integration with the rest of the City, primarily due to the geographical separation. He added that there are several issues in the area, things are happening and they are entitled to a voice on the City Council. He stated that they are ably represented by the NCAC and are a part of the City, and redistricting won't change those factors. He stated that the committee recommendation balances the City and the affected neighborhoods. Council Member Nichols suggested that Council Member Heffernan maintain his activity on the NCAC and with the area. He acknowledged his knowledge of the area and all of the work that he has done. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Volume 56 — Page 187 City of Newport Beach City Council Minutes May 27, 2003 Bromberg Noes: None Abstain: None Absent: Adams Q. MOTION FOR RECONSIDERATION - None. Mayor Bromberg requested that a future agenda item provide an update on the feasibility of senior housing at Newport Village. Additionally, he requested that a future agenda item address City Council call-ups of Planning Commission items and specifically, the requirement that more than one Council Member may need to support the call-up. R. ADJOURNMENT at 10:10 p.m. in memory of Beverly Salata. The agenda for the Regular Meeting was posted on May 21, 2003, at 3:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 56 - Page 188 INDEX