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HomeMy WebLinkAbout01 - 06-10-2003City Council Meeting June 24, 2003 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session June 10, 2003 - 4:00 p.m. RA INDEX HULL UALL Present: Heffernan, Proctor, Ridgeway, Adams (arrived at 4:15 p.m.), Webb, Nichols, Mayor Bromberg Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Webb stated that he reviewed the traffic study proposal for Item No. 10, Professional Services Agreement to Prepare an Environmental Impact Report (EIR) for the St. Andrews Church Project, and that it looks like the proposal is expected to be completed in four to six weeks, upon authorization. He stated that this would mean that the traffic studies would be conducted during the summer and wouldn't reflect the high school traffic in conjunction with the church traffic. He announced that he would be removing the item from the evening agenda to discuss the matter and possibly revise the proposal. Public Works Director Badum stated that some counts are available from the neighborhood traffic plan, but probably not in the detail needed. Planning Director Temple added that upon Council Member Webb bringing up the issue, the traffic consultant has been authorized to begin the detailed traffic counts needed prior to the end of the school year, and that any gaps in information would have to be filled in during the following school year. She stated that City Council action at the evening meeting would provide the authorization needed to officially begin the traffic studies. In regard to Item No. 3, Councilmanic Re- districting, Council Member Heffernan confirmed with City Attorney Burnham that if the redistricting map is changed from what was introduced at the City Council meeting of May 27, 2003, that the item would have to be reintroduced and passed to second reading at the June 24, 2003, meeting. 2. 2003 -04 BUDGET REVIEW — REVIEW OF DEPARTMENTS' BUDGETS. City Manager Bludau stated that the Study Sessions on May 13 and May 27, 2003, were dedicated to reviewing the upcoming budget. The current meeting would continue the review of the department budgets. Fire Department Using a PowerPoint presentation, Fire Chief Riley displayed a chart showing a summary of the Fire Department's budget for the current fiscal year and the upcoming fiscal year. He noted that the total increase for the upcoming year is Volume 56 - Page 189 2003 -04 Budget Review (40) City of Newport Beach Study Session Minutes June 10, 2003 f 51W.1 10.34 %, with a 12.1% increase in salaries as a result of contractual salary agreements and the increase in employer costs for the Public Employees Retirement System (PERS). He displayed the six budgetary divisions in the department, which included administration, fire operations, fire prevention, emergency medical services, training and education, and lifeguard operations. He noted that fire operations accounts for 66.98% of the total budget. Additionally, the chart showed that there are 148 full -time employees in the department plus 32.6 full -time equivalents. The employee count was also broken down by division. Council Member Heffernan asked how many employees are being added in the 2003 -04 fiscal year and how the services for Newport Coast are being handled. Fire Chief Riley stated that nine positions were added to fire operations in the 2002 -03 fiscal year to staff the fire station in Newport Coast and one was added during the year to work on fuel modification activities. He stated that one position is being added in the 2003 -04 fiscal year to the training division. Fire Chief Riley stated that the significant revenue generator for the Fire Department is the paramedic program. He stated that money is also received from the junior lifeguard program, the public safety augmentation fund and fire prevention fees and fines. Fire Chief Riley stated that a significant program change for the Fire Department is the new direction being taken in training. He explained that the City has withdrawn from the Central Net Operations Authority training program, and that these resources have been redirected to a new department assistant for the training and education division, and the development of a training area at the Big Canyon Reservoir. Fire Chief Riley stated that significant program issues that the department will continue to work on include the emphasis on disaster preparedness, the design and construction of a fire station in Santa Ana Heights, and participation in the Corona del Mar main beach improvements. City Manager Bludau added that the contractual agreement with the fire safety personnel has resulted in a 2% salary increase in June 2003 and a 3% increase in January 2004. He stated that the remainder of the increase is due to PERS rate increases. Council Member Heffernan noted that the figures presented for salaries differ from those in the Resource Allocation Plan (RAP). Fire Chief Riley explained that his figure represents beginning budget and the RAP represents actual. Council Member Heffernan agreed that it's important to note that the salary increase is largely due to the PERS increase. Mayor Pro Tern Ridgeway asked how much the PERS contribution amounts equal. Referring to the Budget Detail, Fire Chief Riley stated that the employer contribution for the fire operations division has increased from approximately $450,000 in the 2001 -02 fiscal year to over $1 million in the 2002 -03 fiscal year to $1.6 million in the 2003 -04 fiscal year. Mayor Pro Tern Ridgeway asked if the same ratio applies to all employees in the City. City Manager Bludau stated that the rates for public safety are different than those for miscellaneous Volume 56 - Page 190 City of Newport Beach Study Session Minutes June 10, 2003 INDEX employees. Administrative Services Director Danner further explained that the contracts with PERS are different for the two types of employees and the assets are kept separate. He stated that the miscellaneous employee account has a surplus, so the increase will not be seen until the 2004 -05 fiscal year. He added that it will increase from zero to 3 %. Mayor Pro Tem Ridgeway noted that this will equal approximately $900,000. Administrative Services Director Danner further noted that the public safety amount will increase from 17% to 29 %. Dolores Otting stated that the City spent approximately $500,000 with the City of Anaheim on a joint powers authority to upgrade the communication system. She stated that she disagreed with the expenditure at the time and couldn't understand why the City wouldn't enter into such an agreement with the City of Costa Mesa instead. She asked how much the Fire Department spends on training with the City of Costa Mesa compared with what would be spent on a training facility at the Big Canyon Reservoir. She stated that it is inappropriate to spend money needlessly or to use the reservoir area for anything other than the City's water supply. Mayor Bromberg requested that City Manager Bludau respond to Ms. Otting's comments. Planning Department Using a PowerPoint presentation, Planning Director Temple stated the Planning Department represents approximately 1.5% of the overall general fund expenditures. She stated that for the 2003 -04 fiscal year, salaries will be decreasing slightly, maintenance and operations will decrease substantially, and capital outlay and the Community Development Block Grant (CDBG) fund will also go down. She explained that there were a couple of significant budget amendments during the 2002 -03 fiscal year that accounted for higher than budgeted expenditures in maintenance and operations, and that these were for the general plan update project and the Local Coastal Program (LCP) certification project. Planning Director Temple stated that there are a total of 18 employees in the department, which will remain constant even after the reorganization for water quality enforcement. Planning /administration is the largest group in the department and accounts for over 72% of the department's expenditures. She displayed a list of the functions handled by planningladministration. Planning Director Temple stated that the economic development division represents approximately 20% of the department total, and that the community development block grant division includes no budgeted staff, but provides the funds for the CDBG administration, social services grant, fair housing and code enforcement. Planning Director Temple stated that the department's workload indicators show that since 1990, the department has processed an average of 230 discretionary cases per year. She explained that these are the applications that go to the Planning Commission, the Modifications Committee or to staff for discretionary approval. She pointed out that since 1998, the department has averaged 295 cases per year. Plan checks have also increased by 20% in the Volume 56 - Page 191 City of Newport Beach Study Session Minutes June 10, 2003 IIi►I17D1/ past year. Planning Director Temple stated that the development review and plan review fees have been adjusted, which has increased cost recovery significantly. Planning Director Temple stated that a significant expenditure for the Planning Department is the general plan update. Other significant projects include the certification of the local coastal program, the preparation of a comprehensive sign code update, the activities necessary for the implementation of the housing element and the commercial district revitalization projects. Building Department Building Director Elbettar stated that the total Building Department budget is $2,746,009. The department is comprised of three divisions, which include administration, inspections, and plan checks and permits. There are 26 full - time employees in the department and 2 full -time equivalents. No new positions are proposed for the 2003 -04 fiscal year. Council Member Heffernan asked if the department can handle the workload increases without adding new employees. Building Department Elbettar stated that it's a problem of space limitation, which means the department has to rely heavily on outside consultants to perform overflow plan check and review services. He stated that this is reflected in the department's 8080 account for professional and technical services, and confirmed that the community does not feel the difference in fees, but often feels the difference in the quality of service. He added that the goal to achieve a four -week turnaround of 90% of the plan checks placed more pressure on staff and means that more projects are being sent out. Council Member Proctor asked if there would be a cost savings to having the needed facilities and adding employees, rather than having outside consultants perform the work. Building Director Elbettar stated that sending plans out is not cost effective or efficient, since City staff still has to handle the plans and answer questions. City Manager Bludau added that more complaints are received from plan checks performed by the outside consultants than by those done in- house. Building Director Elbettar confirmed that individuals often request their plans to be checked in- house, even if it means that the process might take longer. Building Director Elbettar displayed a revenue worksheet for the department, comparing the fiscal years back to 1999 -2000, and noted that total revenue has been exceeding $3 million with the exception of the 2002 -03 fiscal year. City Manager Bludau noted that this is without major commercial projects in the last few years. Building Director Elbettar confirmed that the department's workload over the past three years has been primarily for residential construction. He also displayed a graph depicting the department's revenue since the 1994 -95 fiscal year, a chart showing the additional expenditures for outside consultants and the department's monthly revenue report for April, 2003. Lastly, he displayed a chart showing construction valuation since 1996, which has been fairly consistent at approximately $200 million over the past few years. He confirmed that it is another indicator that although plan submittals have Volume 56 - Page 192 City of Newport Beach Study Session Minutes June 10, 2003 INDEX increased, valuation has remained consistent, which is a result of the decrease in commercial projects and the increase in residential projects. Council Member Heffernan asked if there had been any discussion about moving the building permit approval process for Newport Coast from the County to the City. City Manager Bludau stated that the County would prefer to keep the process with the County. City Manager Bludau and Building Director Elbettar stated that temporary facilities and outside consultants would also have to be looked at if the City were to take over the process. Building Director Elbettar noted that it will only be a three to four year spike in activity, which would be difficult to staff temporarily. Council Member Heffernan asked how larger commercial projects will be handled in the future. Building Director Elbettar stated that the inspections can be handled with current staffing, but the plan checks for larger projects would be handled by outside consultants. He added that space constraints do limit the City's ability to provide the services desired. Council Member Heffernan expressed his concern for the constraints and the affect it might have on the business community. City Manager Bludau agreed that additional space would provide the opportunity for additional staffing and a decrease in the use of outside consultants. Mayor Pro Tem Ridgeway added that he has seen the frustrations of the citizens trying to get building permits. General Services Department General Services Director Niederhaus stated that the two major goals for the department for the upcoming fiscal year are to improve water quality and meet all public service challenges. He stated that the department's general fund budget is increasing from approximately $15.9 million to $16.4 million, and noted that this is with the reduction of two staff members. He explained that the increase is due to annexation work, higher maintenance requirements and work in the Balboa Village area. General Services Director Niederhaus noted the significant decreases in the capital improvement program and the internal services fund. General Services Director Niederhaus displayed the department's organization chart, and noted that there are a total of eight divisions and 127 positions. He stated that the two positions that are being eliminated for the 2003 -04 fiscal year are from the operations support and refuse divisions. General Services Director Niederhaus displayed a pie chart of the cost distribution for the department, and lists of expenditures by division for professional and technical services, overtime and special department expenses. He highlighted some of the department's other major expenditures, which included water and utility expenses, and equipment maintenance costs. General Services Director Niederhaus stated that the department's revenue sources include the recycling service fee and solid waste franchise fees from the solid waste haulers. He stated that the grants applied for include the summer litter abatement and zero emission vehicle incentive programs. General Services Director Niederhaus displayed a chart showing the details of the equipment maintenance and replacement fund for the 2003 -04 fiscal year. Volume 56 - Page 193 City of Newport Beach Study Session Minutes June 10, 2003 INDEX He noted that it's the smallest budget he's ever worked with: and that there are only 27 new vehicles being proposed compared to the usual 40 to 42 in previous years. He added that. of the 27 new vehicles, 18 are for public safety. General Services Director Niederhaus stated that the challenges for the department include the purchase and replacement of alternative fueled vehicles. He stated that the Air Quality Management District (AQMD) fund balance was also decreased and that this funds the City's electric vehicle program. The greatest issue, however, could be the series of rules that were passed by AQMD about three years ago. General Services Director Niederhaus explained that they require the City to replace certain vehicles with alternative fueled vehicles, which are more expensive and require special fueling stations. These fueling stations aren't conveniently located and expensive to build. General Services Director Niederhaus stated that the clean water projects scheduled for the 2003- 04 fiscal year include alley sweeping, storm drain and V -ditch cleaning, and enforcement response to the new water quality code enforcement division. In response to an earlier question, General Services Director Niederhaus stated that a $635,000 capital improvement project for the 2003 -04 fiscal year will design and replace the Newport Terrace landfill system. Council Member Webb asked if the vehicle replacement program was completed as budgeted for the current fiscal year. General Services Director Niederhaus stated that all vehicles were purchased with the exception of a paramedic van, which was carried over to the 2003 -04 fiscal year. Mayor Pro Tern Ridgeway asked if the remediation at Newport Place is a shared expense. General Services Director Niederhaus stated that it is, but that there may be funding difficulties on the part of the association. Dolores Otting asked how much the PERS increase is for General Services Department employees. She additionally stated that the AQMD has grants available to build alternative fuel stations. Ms. Otting also expressed her disagreement with City vehicles being driven to Stanton, when the City has its own transfer station. Laura Dietz stated that there should be some type of external audit procedure to insure that the City is receiving the correct solid waste franchise fees. She also stated that building an alternative fuel station should be carefully considered, given that there is a shortage of natural gas. Madelene Arakelian stated that the City's solid waste haulers pay the highest franchise fee in the County. She disagreed with an increase being considered. Based on the earlier comment by Ms. Dietz, City Manager Bludau stated that the City does conduct audits of the solid waste haulers on a regular basis. Library Services Library Services Director Katsouleas stated that the library strives to be the cultural, educational and informational heart of Newport Beach. She stated Volume 56 - Page 194 City of Newport Beach Study Session Minutes June 10, 2003 INDEX that the specific goals for the department for the 2003 -04 fiscal year include continuing to prepare for the new Mariners Library, focusing on customer service, and developing the branches. She stated that the total budget for the department is basically status quo, but two part -time positions are being added to the central library. She displayed a list of the maintenance and operation expenditures by division and a pie chart of the total major expenditures for the library. She noted that 54% of the expenditures are for library materials. Library Services Director Katsouleas also displayed a graph showing revenue comparisons for the 2002 -03 and the 2003 -04 fiscal years. She specifically noted the State funds that the City doesn't expect to receive in the 2003 -04 fiscal year. Library Services Director Katsouleas also displayed a list of the major expenditures for arts and cultural services, as well as a pie chart with the breakdown of the maintenance and operation expenditures. She noted that approximately 54% of the expenditures are for the grants that are given to the art organizations in the community. Recreation & Senior Services Recreation & Senior Services Director Knight stated that the department's budget is fairly status quo, with a slight increase for program costs. The department has 20 full-time employees, 48 part -time employees and 65 contract class instructors. The three divisions are the administrative division, the recreation division and the senior services division. She stated that the recreation division oversees the classes, aquatic and sports programs, and the special events permitting process, and that the estimated revenue for the division for the 2003 -04 fiscal year is approximately $1.6 million, which represents 71% of the total expenses for the department. Recreation & Senior Services Director Knight displayed a list of some of the services of the senior services division and the estimated revenue for 2003 -04. She noted that the revenue generated by the division is less than for the recreation division because most of the classes are offered at no fee. Recreation & Senior Services Director Knight stated that the goals for the department include the opening of the Bonita Canyon Sports Park, working on the Mariners Park reconstruction and other future park developments, expanding an emphasis on teen programs, increasing marketing, establishing a joint use agreement with the Newport -Mesa Unified School District for facilities use, and increasing the intergenerational, health and wellness programs at the senior center. Public Works Department Public Works Director Badum stated that the department's 2003 -04 budget is relatively the same as the current year's budget, but the capital improvement program has been decreased. He stated that the department is comprised of three divisions and includes administration, engineering, and transportation and development services. The total department budget is approximately $3.8 million. Public Works Director Badum stated that due to the many recent retirements in the department, a minor reorganization has taken place. He Volume 56 - Page 195 City of Newport Beach Study Session Minutes June 10. 2003 INDEX explained that some of the administrative and GIS functions have been consolidated, the City surveyor position has been upgraded, a survey technician position has been temporarily vacated, and the plan check function was reorganized. Public Works Director Badum stated that the total revenue for the department is $2.5 million, with $2.1 million of this coming from parking meter collections. He stated that the department's goal is to try to take care of the City's infrastructure before it becomes a problem. He displayed a graph showing the capital improvement expenditures since 1961. Council Member Webb asked if the department has all of its positions filled. Public Works Director Badum stated that there is one civil engineering position, two junior engineering positions and one engineering technician position that are currently vacant. Council Member Webb asked if the City would have to rely on outside contractors for inspection services of the capital improvement projects. Public Works Director Badum stated that it is hoped that the use of outside contractors will be kept to a minimum. He noted that the reduction in projects has given staff the opportunity to regroup. Mayor Pro Tern Ridgeway noted that Phase 111 of the Balboa Village project is not included in the 2003 -04 capital improvement program, and suggested that it be included in the 2004 -05 budget. He requested that the methane mitigation at the A Street pump station also be considered. Utilities Department Utilities Director Davidson stated that the department is comprised of four divisions, which include electrical, oil and gas, water, and wastewater. He stated that the electrical division is funded by the general fund, and the other divisions are funded by revenues. He displayed a chart showing the department's total operating budget and noted that 5.2% of the increase is due to a shift in maintenance programs from the capital improvement program to operating budgets. Utilities Director Davidson further noted that salaries and benefits total approximately $4.5 million, and maintenance and operations total approximately $13.7 million. He stated that one position is being added to perform video inspections of the City's sewer lines. Utilities Director Davidson displayed the operating budgets of the divisions. He also displayed key personnel changes, large expenditures, operational changes, and revenues or fees collected for each of the divisions. Overall Budget Mayor Bromberg complimented the budget process and the presentations. Council Member Heffernan asked if a projection of the impact of the State's budget had been considered in the City's proposed budget. Administrative Services Director Danner stated that staff anticipated that the State's budget would have an impact on the City's budget and for the second year in a row has eliminated the Vehicle License Fee (VLF) from the revenue projections. Council Member Heffernan confirmed that the proposed budget does not need to be Volume 56 - Page 196 City of Newport Beach Study Session Minutes June 10, 2003 updated further. (1013 11 Mayor Bromberg stated that earlier in the day, he spoke to State Senator Johnson and State Assemblyman Campbell and expressed the City's concern for its potential loss of $1.2 million. City Manager Bludau added that the loss could end up being an ongoing loss. Council Member Webb asked when items could be added to the supplemental checklist. Mayor Bromberg stated that it could be done at any time prior to the adoption of the budget at the City Council meeting of June 24, 2003. PUBLIC COMMENTS John Blom, representing the Corona del Mar Business Improvement District (BID), requested that the City Council support the items in the budget that will continue the implementation of the Corona del Mar Vision 2004 Plan. He stated that the majority of the monies are for median and crosswalk improvements. The funds would be used to finish Coast Highway, and would benefit traffic flow and improved pedestrian safety. Mr. Blom stated that in addition to the amount being rolled over from the current fiscal year, the BID is requesting an additional $180,000. He noted that the BID will contribute $120,000 to complete the medians. Mr. Blom also requested that the City match the BID's contribution of $20,000 for the Corona del Mar centennial. Mayor Pro Tern Ridgeway asked how much is being carried over for the medians from the current year's budget. Public Works Director Badum stated that it is just under $400,000 for the medians and the crosswalks. Mayor Pro Tern Ridgeway confirmed with Mr. Blom that the BID is requesting additional funds, in addition to the carryover amount. Council Member Nichols confirmed with Mr. Blom that the carryover is approximately $261,000 for the medians plus $71,000 for the sidewalks, and that the BID is requesting an additional $180,000. Dolores Otting stated that Assistant City Manager Wood portrayed her at a Youth City Council Meeting a couple months ago. She stated that she requested Assistant City Manager Wood to pull that portion from the video tape, but that it wasn't done. Ms. Otting stated that Assistant City Manager Wood displayed poor judgment by portraying her. Council Member Heffernan requested that the City formally respond to the matter. Mayor Bromberg stated that he was present at the mock meeting and that nobody was made a fool of. ADJOURNMENT — at 6:00 p.m. ttttttttttttttttttttttttttttttt Volume 56 - Page 197 City of Newport Beach Study Session Minutes June 10, 2003 The agenda for the Study Session was posted on June 4, 2003, at 2:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 56 - Page 198 WIFOD/I CITY OF NEWPORT BEACH City Council Minutes Study Session June 10, 2003 - 7:00 p.m. STUDY SESSION - 4:00 p.m. INDEX CLOSED SESSION -None. ttttttttttttttttttt A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Proctor, Ridgeway,_ Adams, Webb, Nichols, Mayor Bromberg Absent: None C. CLOSED SESSION REPORT- Not'applicable. D. PLEDGE OF ALLEGIANCE - Council Member Adams. E. INVOCATION - Pastor Frank Custer, Lighthouse Coastal Community Church, Costa Mesa F. PRESENTATIONS Proclamation recognizing Ken & Marge Lindahl, residents & retiring business owners on Balboa Island. Mayor Bromberg read the proclamation for the audience. San Joaquin Reservoir Presentation, Paul Jones, IRWD. Mr. Jones highlighted the history of the reservoir. He stated that IRWD purchased the reservoir in 2001 to use as a reclaimed water storage facility, they will use the reservoir to improve the efficiency of the reclaimed water system, store water in the reservoir during winter, and draw it down during the summer. He reported that they need to do a complete rehabilitation of the reservoir site and build three new pump stations, a chlorination facility, and a storm drain. Further, they will install an aeration system and a seepage pump -back facility. He noted that their mitigated negative declaration was legally challenged and they were directed by the courts to do a full environmental impact report (EIR) that was certified in June. He stated that the process allowed them to receive more input from the City and residents, and incorporate a number of features into the design. Mr. Jones reported that they had a public meeting on this and individual meetings with almost all the adjacent homeowner associations, Defend the Bay, the California Water Resources Control Board, City staff, and EQAC. He noted that they have a comprehensive water management plan, will conduct regular and continuous water quality monitoring, install an upgraded Volume 56 - Page 199 City of Newport Beach City Council Minutes June 10, 2003 aeration system, use various ecosystem management techniques, made changes to minimize the visual impacts, will implement a modified chlorination system, incorporate a seepage control system, and agreed to have homeowner and City review the landscaping, color, building style, and lighting designs. Mr. Jones reported that they received nine letters from homeowners immediately adjacent to the reservoir urging IRWD to move forward with the project and get water into the reservoir as soon as possible. He added that they did not receive any negative comments. He stated that they need to finalize the design documents and would like to begin construction in November 2003. In response to Council questions, Mr. Jones reported that a seismic study was conducted and completed. He stated that the problem with the landslide was remedied by taking that portion of the reservoir out of service and filling it so it abuts the landslide. He explained what reclaimed water and tertiary treatment are. He noted that there is an interconnection with the reclaimed water system and the City, and the reservoir would be the backup supply fonthe reclaimed water system. 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): • Council Member Proctor requested a report on the status of the tree issue in Villa Balboa. ' Council Member Proctor asked for.signage on Superior Avenue to deal with speeding issues and also requested a report on increased law enforcement. Mayor Bromberg higtilig�E d the number of viewers, entries, and participants in the Balboa Island Parade. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS I. Removed at the request of an audience member. 2. READING 00 ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCE FOR ADOPTION 3. Removed at the request of Council Member Heffernan. RESOLUTION FOR ADOPTION 4. RESOLUTION RELATING TO A PROPERTY TAX TRANSFER WITH THE CITY OF COSTA MESA FOR PORTIONS OF THE Volume 56 - Page 200 INDEX Res 2003 -26 Property Tax City of Newport Beach City Council Minutes June 10, 2003 "k 11DII Volume 56 - Page 201 BAY KNOLLS COMMUNITY. Adopt Resolution No. 2003 -26 agreeing Transfer for to a property tax exchange for the City's pending annexation of certain Bay Knolls parcels in the Bay Knolls neighborhood between Newport Beach and (21140) Costa Mesa. CONTRACTS AND AGREEMENTS 5. Removed at the request of Council Member Adams. 6. FIRE STATION NO. 3 PAVEMENT REHABILITATION - AWARD C -3605 OF CONTRACT (C- 3605). 1) Approve the plans and specifications; Fire Station No. 3 2) award the contract (C -3605) to Hillcrest Contracting, Inc. of Corona Pavement for the total bid price of $139,417.50 and authorize the Mayor and the Rehabilitation City Clerk to execute the contract; and 3) establish an amount of (38) $13,927.20 to cover the cost of unforeseen work and material testing. 7. IRVINE AVENUE 12" WATER MAIN IMPROVEMENTS - G3450 SHERINGTON PLACE TO DOVER DRIVE - AWARD OF BA -076 CONTRACT (C- 3450). 1) Approve the plans and specifications; Irvine Avenue 2) award the contract (C -3450) to Cody Engineering for the total bid 12" Water Main price of $435,562 and authorize the Mayor and the City Clerk to execute Improvements the contract; 3) establish an amount of $43,000 to cover the cost of (38140) unforeseen work; and 4) approve a budget amendment (BA -076) appropriating $150,362 from the unappropriated balance of the Water Enterprise Fund to Account No. 7501- C5500356. S. NEWPORT HEIGHTS ALLEY REPLACEMENT - AWARD OF C -3565 CONTRACT (C- 3565). 1) Approve the plans and specifications; Newport Heights 2) award the contract (C- 3565), Alternate "A" (construction of alleys in Alley Replacement concrete), to Nobest Inc, for the total bid price of $275,115 and authorize (38) the Mayor and the City Clerk to execute the contract; and 3) establish an amount of $27,000 to cover the cost of unforeseen work. 9. BALBOA VILLAGE IMPROVEMENTS PHASE 2 - AMENDMENT C -3527 TO PROFESSIONAL SERVICES AGREEMENT WITH HARRIS & BA -074 ASSOCIATES. 1) Approve Amendment No. 1 to Harris & Associates, Balboa Village Inc. for supplemental construction management services and authorize Improvements the Mayor and City Clerk to execute the Amendment for a not -to- exceed Phase 2 fee of $69,950; and 2) approve a budget amendment (BA -074) (38140) appropriating $69,950 from the unappropriated balance of the General Fund to Account No. 7024- C5100543, Balboa Village Improvement Project -Phase 11. Council Member Adams recused himself from voting on this item 10. Removed at the request of Council Member Webb. 11. ORANGE COUNTY DISTRICT ATTORNEYS OFFICE C -2031 AGREEMENT. Approve five -year agreement with the Orange County Orange County District Attorney's Office for criminal prosecution of City Municipal District Attorney's Code. Office (38) Volume 56 - Page 201 City of Newport Beach City Council Minutes June 10, 2003 MISCELLANEOUS ACTIONS 12. PROPOSED UPDATE OF CITY COUNCIL POLICY F -2, RESERVES/DESIGNATIONS OF FUND BALANCE. Approve proposed revisions to City Council Policy F -2. 13. APPLICATION FOR 2003 ENVIRONMENTAL PROTECTION AGENCY GRANT FUNDS FOR BIG CANYON RESERVOIR COVER. Authorize the City Manager to sign application for the 2003 Environmental Protection Agency Grant Funds in the amount of $867,300 for Big Canyon Reservoir Cover project. 14. APPOINTMENT OF BILL SINCLAIR TO - 'ECONOMIC DEVELOPMENT COMMITTEE. Removed from the agenda: 15. EXCEPTIONS TO CITY COUNCIL POLICY B-8,= BIKE, FOOT RACE AND SURF CONTEST POLICY. Approve-, the following exception to Council Policy B -8 for Athletic Events for calendar year 2003: Special Event Permit Application No. 03135 for the Walk for the Cure sponsored by the National Childhood Cancer Foundation, Sunday, November 2, 2003 at Fashion Island. Motion by Mayor Pro Tem Ridgeway to approve the Coinsent- Calendar, except for those items removed (1, 3, 5 and 10), and noting, the removal of Item 14 from the agenda and the recusal by Council Member Adams to Item 9. The motion carried by the following roll call vote:" Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg" Noes: None Abstain: None Absent: None J. ITEMS REMOVED FROM THE CONSENT CALENDAR 1.; MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF MAY 21,2003. Jim Hildreth believed that there are things missing from his statements that start on.page 175. He believed that the owner built his house to code at one point and, after it was signed off, he was allowed to build it out of code. He believed that he said the "United States government ", not just "government ", classifies a disabled individual. He highlighted the guidelines for a disabled individual and indicated that, he can walk on crutches and, therefore, he meets the requirements. He added that the Federal law states that a person who is physically impaired has access rights and the City should look into those things. He believed that he never said anything about a relocation of a ladder; however, the legitimate structure that was there and its removal is unjustified. He believed that the City's replacement of the ladder was unwise and that Mr. Badum stated it was an unsafe structure. He believed that the Volume 56 - Page 202 INDEX Council Policy F -2 (40/69) Big Canyon Reservoir Cover/ 2003 EPA Grant (89) EDC Appointment (24) Council Policy B -8 (62/69) City of Newport Beach City Council Minutes June 10, 2003 Mayor said something about looking into having the shore mooring removed. He stated that this location is no different than anyone else's in the Grand Canal and hoped the City was not trying to remove everybody's location. Motion by Mayor Pro Tern Ridgeway to waive reading of subject minutes, approve as written and order filed. Council Member Adams explained that he is abstaining because he was not at the last Council meeting. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Nichols, Mayor Bromberg Noes: None Abstain: Adams Absent: None COUNCILMANIC REDISTRICTING. Council Member Heffernan reported that, at the last Council meeting, he and Council voted to follow the recommendation of the Redistricting Committee, of which he is a member. He stated that he has since attended the Newport Coast Advisory Committee (NCAC) meeting and they strongly lobbied to keep Newport Coast in one Councilmanic district because of the issues that are peculiar to them that will be addressed in the next five to ten years. He stated that, as the representative of Newport Coast, he believed it should be kept together and dealt with in a more uniform way by having one Councilman represent the entire community. He requested that the alternative plan be implemented instead of the recommended plan. He noted that a PowerPoint presentation is being used to show the two plans. Mayor Bromberg stated that he has had a fair amount of email communication with the representatives of Newport Coast who feel they would be better off keeping the area in one district. He indicated that he tried to have them understand that redistricting is a non -event and is for political lines to meet State requirements. He emphasized that a designation of a community, a zip code, or the community character does not change. He noted that, if the recommended action is approved, the only change would be that both Corona del Mar and Newport Coast would have two Council Members. He believed that this would give the areas more political clout. Council Member Adams pointed out that, with the recommended redistricting, there should be two Council Members assigned to the NCAC. Council Member Heffernan stated that this is not how it is currently setup and noted that Council Member Nichols has told him that he prefers that he continue as the representative. Council Member Adams believed that having two representatives would be an advantage for Newport Coast. He asked why the Redistricting Committee did not Volume 56 - Page 203 INDEX Ord 2003 -11 Councilmanic Redistricting (33) City of Newport Beach City Council Minutes June 10. 2003 11011 D11 select the alternative. Council Member Heffernan stated that his change came from listening to NCAC and their desire to have a single Councilman addressing their issues in the event the two Council Members do not agree. Further, the two Council Members are in different election cvcles. Mayor Bromberg stated that he and Council Members Heffernan and Webb were on the Redistricting Committee. Council Member Webb noted that the recommended option seems to have more logical boundaries to keep geographical areas together, noting that the alternative has the Port Streets wrapped around and off one end of the district. He expressed the opinion that San Joaquin Hills Road makes a logical boundary line for the district separation between Newport Ridge and the other area. Mayor Bromberg noted that this was the consensus of the committee at that time. He noted that Corona del Mar went through the same thing and accepted it once they looked at the situation. He stated that he does not have 4Ay "reason to believe that Newport Coast or Newport Ridge will be in harms way if this were approved. He added that he still supports the committee recommendation since the boundary lines are very logical; however, both plans would work. Council Member Heffernan pointed out that he lives in the Port Streets and that part of Corona del Mar is already in his district. He stated that he understands what the alternative_ is doing to the Port Streets, that the Bonita Canyon Sports Park is almost done, and the Port Street issues are resolved. He emphasized that the open issues are in Newport Coast. Council Member Nichols stated that he will go along with the thinking of the majority of Council. He added that he does not feel he has any special qualifications to work with NCAC. However, if he did have this portion of Newport'Coast, he needs Council Member Heffernan's help and continuance. . Council Member Adams stated that his tendency is to stick with the original committee recommendation and that he respects Newport Coast's request. He' indicated that the City should strive to help integrate Newport Coast into the greater City and having two Council Members can help this happen. He concurred that the recommended plan is a more logical, geographic representation. Further, the type of development in District 7 will be more homogenous. He strongly recommended that a change be initiated to the NCAC makeup to include both Council Members. Mayor Bromberg asked that this come back for Council approval. Bernie Svalstad believed that, if the alternate plan is chosen, this should be continued because he cannot tell what it does to Corona del Mar. Mayor Bromberg stated that Corona del Mar would not become three districts. Mr. Svalstad received confirmation that both options were always included in the staff report. Volume 56 - Page 204 City of Newport Beach City Council Minutes June 10, 2003 Jim Hildreth asked if this means that Council Member Nichols is not qualified to take control of Newport Coast and believed that he should be offended. He stated that Council Member Nichols is very qualified to be a Councilman and he will try his best to support him. Mayor Bromberg clarified that Mr. Hildreth has the maps backward, explaining that Council Member Nichols' area will be expanding into Newport Coast and is not being taken away from him. Laura Dietz stated that he spoke to Jim Ellis of the NCAC about the possibility of Newport Coast having two representatives. She expressed the opinion that she cannot think of anything better than to have two people working hard on their behalf. She stated that, since She plans to run again for Council in District 6, she has a vested interest and would like to represent people from Newport Coast. She noted that staff had a formula to make the districts equal and commended their work. Council Member Nichols asked that the change he requested at the last meeting regarding Buck Gully be instituted. Motion by Council Member Heffernan to reintroduce Ordinance No. 2003 -11 to follow the alternative plan for the redistricting. The motion dies for lack of a second. Motion by Council Member Webb to adopt Ordinance No. 2003 -11 changing and redefining the boundaries of.Councilmanic districts. The motion carried by the following roll call vote: Ayes: Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: Heffernan Abstain: None Absent: None 5. JAMBOREE ROAD MEDIAN IMPROVEMENTS — COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3459). Council Member Adams expressed his thanks to staff for executing this project. He believed that it turned out very nice and is an enhancement to his district. . Motion by Council Member Adams to 1) accept the work and approve change orders 2, 4b, c, d, 5 and 6; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; 4) release the Faithful Performance Bond one -year after Council acceptance; 5) approve a budget amendment (BA -075) appropriating $5,849 from the unappropriated balance of the Circulation and Transportation Fund to Account No. 7261- C5100580; and 6) approve a budget amendment (BA -075) appropriating $27,370.62 to Contributions Account No. 7251- C5100580 and increase revenue estimates by Volume 56 - Page 205 INDEX C -3459 BA -075 Jamboree Road Median Improvements (38140) City of Newport Beach City Council Minutes June 10, 2003 10. $27,370.62 into Account No. 250 -5901 to reflect the City of Irvine's contributions for the median improvements. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None PROFESSIONAL SERVICES AGREEMENT TO PREPARE AN ENVIRONMENTAL IMPACT REPORT (EIR) - FOR THE ST. ANDREWS CHURCH PROJECT. ;he beginning of the process EIR since it will allow them hoped that this will build Council Member Webb stated that this is and the community really needs to have an to have their questions answered. He consensus within the community. He 'noted that there will be an opportunity for the community to comment on the Notice of Preparation which will describe the proposal and the. scope of work. He complimented staff and the church for going through this process. Council Member Webb stated that the current traffic study is to be completed in four to six weeks which is during the summer. However, he feels that the traffic information should also be-gathered at a time when the high school is in session'. He indicated that he is not sure that the scope of work needs to be modified, as long as it is understood that the work will take place in this manner. He added that the applicant agreed that this was appropriate. Mayor Bromberg explained that an EIR is an environmental study that covers traffic, parking, etc. He reported that, after the report is completed, it is brought back to staff, is circulated, and comments can be made regarding the findings. He emphasized that having an EIR is not an approval of the project. Motion by Council Member Proctor to approve a Professional Services Agreement with Keeton Kreitzer Consulting of Tustin, for professional environmental services to prepare an EIR for a not to exceed cost of $92,030. i Philip Bettencourt stated that he, Senior Pastor Huffman, and two members of the Building Committee Leadership from St. Andrews Presbyterian Church are in attendance tonight to show support for the action .9n the agenda and look forward to moving ahead with the EIR. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Volume 56 - Page 206 INDEX C -3619 EIR for the St. Andrews Church Project (38). City of Newport Beach City Council Minutes June 10, 2003 K. PUBLIC COMMENTS INDEX • Jim Hildreth said "thank you" for allowing him to be in the Balboa Island Parade and to John Garrett for pushing him down the main drag. He indicated that a protest was kind of ensuing by one of the Keystone Cops; however, he received a "Village Genius" sign from him. He believed that the target is access and should not be him. He stated that the City put up a ladder but they don't want to hold up to their idea of putting public access in that location. He indicated that the access is not just for him, but other people throughout the City. He stated that he hopes to be invited again to the parade and that he will make sure that his registration is in at the proper time so he is not at the very end of the line since there was horse mess in the middle of the road. Mayor Bromberg stated that this is the first time he has seen the sign. He reported that Mr. Hildreth was not invited to the parade, he crashed the parade, and was asked not to attend. He noted that this happened last year and will probably happen next year- Russell Niewiarowski stated that he is proud that a portion of Santa Ana Heights (SAH) is making its way into Newport Beach. He expressed his support for securing the redevelopment funds since he feels the City will do a better job with the distribution of funds to best accommodate the concerns and wishes of the residents. He encouraged Council to move forward with a visioning process for SAH so residents can be involved in the process. He also encouraged Council to support having a new leadership in the project advisory committee (PAC). He stated that he does. not support the $11+ million community center and suggested spending the funds to beautify the outer perimeter of the community. He distributed a handout and indicated that they should be a part of these types of positive concepts. He recommended hiring a code enforcement officer to beautify the inside of the community. Mr. Niewiarowski stated that El Toro is not dead and encouraged Council to support LAX in its move to secure an airport at El Toro. He suggested having Council send a letter of support to Mayor Hahn of Los Angeles and noted that they know how to design airports. Mayor Bromberg reported that East Santa Ana Heights will become part of the City on July 1, 2003, noting that this has been going on for almost 30 years. He stated that there will be a code enforcement officer for the area. • Dolores Otting reported about finding a dirt hole in the vent of her mother -in -law's room at a skilled nursing facility and that the City Manager went with her to look at it. She expressed hope that, when the Fire Department conducts its inspection of these types of facilities, they lift the vents and ask to see the records of when the ducts were inspected. She indicated that the cost for the Fire Department's time could be paid for by raising the price of business licenses. • Peggy Ford stated that she is on the Corona del Mar Centennial Event Committee. She announced that their next committee meeting will be Volume 56 - Page 207 City of Newport Beach City Council Minutes June 10, 2003 INDEX on June 11 at Sherman's Library and Garden at 5:00 p.m., and they are looking for more committee members and volunteers. Aaron Israel, Youth Council Chairman, thanked Council liaison, Mayor Pro Tern Ridgeway, for all the help he has given to him and the Youth Council; Mayor Bromberg for his support, especially on Youth Government Day; and the members of the Youth Council for their commitment and dedication. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Ad Hoc General Plan Update Committee (GPUC)' Council Member Adams reported that their next meeting will be on June 23 for the purpose of nominating candidates to two vacant positions on the General Plan, Advisory Committee (GPAC). Planning Director Temple reported that GPAC met last night, reviewed the Local Coastal Plan, and made a few recommendations to the LCP Committee. Local Coastal Program (LCP) Certification Committee. Mayor Pro Tem Ridgeway stated that they are waiting for responses from EQAC, GPAC, and the Coastal Commission. Newport Coast Advisory Committee (NCAC). Council Member.-Heffernan stated that they met June 4 and discussed redistricting and community center issues. He noted that $7 million is set aside for the community center, but it has to be determined whether they want it or if the money should go back to the homeowners, and where it should be located if they want it. He reported that they hired an architectur al. firm to do schematic renderings so the community has an idea of what the facility will look like and they will also conduct an outreach. He stated that the NCAC believes that the assessment districts were either improperly.: formed or the money, was not properly spent in Newport Coast. He indicated that this is'bemg addressed through outside counsel hired by the City as part of its obligation under the annexation agreement. He noted that, under the annexation agreement; the City is obligated to take over slope maintenance and other maintenance issues, but the hold up has been identifying the conditions of the existing slopes, determining which slopes are included, and determining a fair allocation of costs. He stated that, at the end of the month as part of the budget, the City will address the budget allocation so the money can get back to the Newport Coast residents. He noted that master agreements with the City are still open with the master associations. Council Member Heffernan stated that they also discussed the potential redirecting of the traffic pattern at the Newport Coast Elementary School due to safety issues and traffic problems. Mayor Bromberg extended an invitation to the leaders of Newport Coast to come to a Council meeting so they can get to know them. He indicated that having them attend a future study session may be productive, but suggested coming down before that occurs. Mariners Joint Use Library Ad Hoc Steering Committee. Council Member Webb stated that the next meeting will be tomorrow and they will be discussing interior decorations and field operationslchanges. Volume 56 - Page 208 City of Newport Beach City Council Minutes June 10, 2003 M. lei July 4th West Newport Safety Planning Committee. Council Member Proctor stated that they met yesterday and had a presentation from the Police Department to highlight where they are in their operations and the role the community can play to protect the public's safety. He reported that they received constructive ideas about possibly controlling the bike lane on Coast Highway and talked about whether the police can mitigate crowds earlier. Further, it was suggested that party hosts pass out wristbands so they know who is there. He indicated that he suggested that, if the area was interested in doing this, he has discretionary funds to help pay for the wristbands. Southern California Association of Governments (SCAG). Mayor Pro Tern Ridgeway reported that SCAG prepared a DVD and asked every member to make a presentation about SCAG. Aviation Committee. Mayor Bromberg stated that they will meet on June 16. Coastal/Bay Water Quality Citizens Advisory Committee: Mayor Pro Tem Ridgeway stated that he testified before the Santa Ana Regional Water Board a couple of weeks ago about what the City is doing to comply with the NPDES. He stated that the City is in good standings with the Regional Board. He directed staff to prepare a report in the next 90 days and have Assistant City Manager Riff make a presentation. Mayor Bromberg announced that the City has 154 volunteers that make up the 11 ad hoc committees and 7 boards and commissions. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 16. PLANNING COMMISSION AGENDA FOR JUNE 5, 2003. Planning Director Temple noted that Item 1 was the minutes. Regarding Item 2 (West 156 Street Townhomes), she reported that this is a proposal for an attached condominium project with 42 units to replace an existing four building, non - conforming industrial business. She indicated that this is the first new medium -sized residential project they have. seen in that area for quite some time. She noted that it was approved and is subject to appeal or call up by Council. She indicated that they also acted on Item 3 (R &D Sandwich Bar) for a use permit pursuant to the Alcoholic Beverage Outlet (ABO) ordinance for a new restaurant. She noted that Items 4 and 5 were continued at the request of staff. Mayor Pro Tern Ridgeway believed there was an abstention to the vote on Item 2. Ms. Temple stated that she will check the vote. Mayor Pro Tern Ridgeway asked if conditions were imposed regarding affordable housing. Ms. Temple reported that an "in -lieu of provision of affordable housing was imposed on the project ($8,000 per built unit). PUBLIC HEARINGS 17. FISCAL YEAR 2003 -04 PROPOSED BUDGET HEARING. Volume 56 - Page 209 INDEX Planning (68) FY 2003 -04 Budget Hearing City of Newport Beach City Council Minutes June 10, 2003 City Manager Bludau reported that the action tonight is to hold a public hearing on the proposed budget. He stated that, for the last three study sessions, Council has reviewed the proposed department budgets and the capital improvement plans (CIP). He indicated that tonight should be used to listen to public comments and develop a proposed check list that Council can consider at the next meeting. He noted that items can be added even during the next Council meeting. Mayor Bromberg reported that the City's budget is about $162 million. Mayor Bromberg opened the public hearing. John Blom stated that he is representing the Corona del Mar Business Improvement District (BID) which has about 450 members. He noted that he, Corona del Mar President Chip Stassel, and'Corona,de'l Mar Residents Association President BJ Johnson are united to ask for Council support for items to the budget that 'Will,, continue the implementation of the Vision 2004 Plan. He indicated"t�iat the majority of the money they are requesting is to fin4 Coast Highway which is now painted with yellow lines as medians. He believed that the medians will provide a benefit to the traffic flow by eliminating illegal turning and U- turns. He stated that improving pedestrian flow is an essential part of the Vision Plan and noted that pedestriau, safety should be everyone's goal. He believed that improving the cros�walkswrill achieve both objectives. Noting that '$3$8,000 is being rolled over, Mr. Blom indicated that they are requesting an additional $180,000 to complete the medians. He stated that the BID will'contribate $120,000. He asked how many other City projects have been funded 20% with non - City funds. Regarding the Corona del'Mar Centennial, he indicated that they are asking the City to match their $20,000 commitment. He noted that everyone has the chance to participate.in these events and believed the whole City can benefit. Council Member Heffernan asked, if the money is allocated, can the City do the work. Public Works Director Badum reported that the City would need.. to obtain permits from, Caltrans to do any work on the State / highway: He clarified that,4 the highway is relinquished to the City, it would entail a simple CIP process in which the City prepares plans and goes out to bid. However, if the relinquishment does not happen, there is a permit process. He stated that the City can process plans either way but it takes longer to get through Caltrans' process and the City will be subject to theii criteria. Mr. Blom explained that they have $338,000 being rolled over because the project was not done last year. He stated that they have decided they did not want to wait for the relinquishment because they want to move forward. Mayor Bromberg received confirmation that, if the relinquishment does not happen now and the City moves forward, they will not have to tear everything out and start over. In response to Council Member Nichols' questions, Mr. Blom explained that BID funds come from taxing its members. He stated that they have a nine member Board of Directors that are elected by the members at- Volume 56 - Page 210 INDEX (40) City of Newport Beach City Council Minutes June 10, 2003 INDEX large, adding that they all voted in favor of this. Council Member Nichols asked how many of its members voted for the Board at the last election. Mr. Blom reported that the election was controlled by the City and the Board works like a Council. Council Member Nichols believed that the number of people voting for the Board is very small. Chip Stassel, Corona del Mar Chamber of Commerce President. stated that the Chamber provides a variety of benefits to the businesses and residents of the City. He reported that they host the 5K race in a joint venture with the Recreation and Senior Services Department, and netted the City between $20:000 to $40,000. He requested that the City provide $5,000 to bolster their sponsorship which could increase the revenue for the Chamber and the City. He stated that the Annual Christmas Walk always costs the Chamber money and requested that the City provide $10,000 to promote and develop this event. He reported that they publish an annual business directory that is distributed to Corona del Mar and Newport Coast, and requested $5,000 to help with the cost. BJ Johnson, Corona del Mar Residents Association Chairman, stated that they have always been in favor of the Vision 2004 Plan and promoted the BID in their newsletters because it promotes a general improvement to the area. She expressed her support of the BID's request and the implementation of the improvements to the village. She noted that they had a table at the 5K Race that also displayed the visioning plan and people expressed their desire to still have it happen. Council Member Nichols asked if a comprehensive report can be generated about'what Corona del Mar residents like. He also asked about the legal restrictions regarding appropriating money to a chamber of commerce. City Attorney Burnham believed that there is a restriction on the amount of money a general law city can give, but he is not sure if that applies to charter cities. He stated that he will get this information. Jim Hildreth believed that the City should do what it said it would do, and put in public access at the southwest end of the Grand Canal. He believed that, if the City is not going to do this, it removed the structure under false pretences. He believed that the structure should be replaced and this should be put in next year's budget. Ron Winship stated that the County of San Diego has an $800 million budget and discovered that $300 million is for pensions. He asked how much of the City's $162 million budget is for pensions and how much is spent on public safety annually. He believed that public safety is going from a 2% to 3% pension. He stated that this will become an ongoing budget problem. He suggested having a public disclosure of how much of the budget is allocated for pensions. Mayor Bromberg noted that the City has had three budget meetings and every issue raised was discussed. Mr. Bludau stated that staff can provide Mr. Winship with the information. Council Member Adams asked that this be reported at the next meeting and indicated that public safety accounts for $56 million (43.39 %) of the budget. Volume 56 -Page 211 City of Newport Beach City Council Minutes June 10, 2003 INDEX Dolores Otting stated that Council Member Heffernan brought up PERS at the afternoon meeting and believed that it would be nice if there were two -year, three -year, and five -year plans of what PERS is going to cost the City. Noting that there will be a trailer on City Hall to house employees, she requested that lights be installed along the parking lot walkway, especially since the trailer will be an obstruction to the street. She also asked about the tape machine. Mayor Bromberg noted that they are working on it. There being no further testimony, he closed the public hearing Mayor Bromberg requested $139,000 for a Marine Avenue streetscape: He stated that Marine Avenue is the business district on Balboa Island and brings in a lot of revenue, but it is starting to show wear and tear. He noted that $25,000 has already been funded. Mayor Pro Tern Ridgeway requested $200,000 for a .Balboa Village methane mitigation/odor control program for 2003 -2004 and, for 2004_ 2005, $1.5 million for Phase III of the Balboa Village Plan. Council Member Webb stated that the bids for the Mariners Mile Improvements Phase I project came in a little over budget today so there will probably be a reconsideration of the project. He noted that the funds are not currently shown in the'new budget because they were planning to spend it this year. He requested that this be carried over and that $75,000 be budgeted for design plans for Phase II. I . Council Member, Webb stated that he has been working with the General Services Director on the restroom rehabilitation program and noted that he requested that the. toilets in the public restrooms have toilet seats. He reported that at least 85 did not have toilet seats and proposed that the existing budget for restroom rehabilitation (page 9) be increased by $10,000. Council Member Webb requested that a design and environmental document be put together for the construction of a sidewalk along Dover Drive, between Cliff Drive and 16th Street, adjacent to Castaways Park. He. noted that this is the only section along Dover Drive between Coast Highway and Irvine Avenue that does not have a sidewalk. Council Member Webb requested $20,000 for a start -up program for the City's 100!b Anniversary in 2006. Council Member Heffernan agreed with Ms. Otting that the lighting outside the buildings is poor, especially in the parking lot facing Starbucks. He stated that this can be put in his checklist. Council Member Heffernan requested that money be allocated to put speed bumps on Newport Hills Drive West and East, opposite of the Nature Park, since there is a lot of cross traffic in a crosswalk area. He noted that the City has an aversion to speed bumps because of traffic Volume 56 - Page 212 City of Newport Beach City Council Minutes June 10, 2003 and safety concerns, but believed that the City has to weigh the factor of increasing speeds in that area of the Port Streets. City Manager Bludau stated that he does not want Council to be surprised when they see the supplemental list for the next meeting, reporting that only $600,000 is available. Motion by Mavor Pro Tern Rideeway to direct staff to prepare a "checklist" of proposed changes to the proposed budget that will be reviewed by the City Council at the meeting of June 24, 2003; and direct the preparation of the Budget Resolution for adoption at the Council Meeting of June 24, 2003, including any "checklist" items that are recommended for approval. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Mayor Bromberg recessed the meeting at 9:00 p.m. and reconvened the meeting at 9:10 p.m., with Mayor Pro Tern Ridgeway arriving at 9:15 p.m. 18. ADOPTION OF THE ANNUAL APPROPRIATION (GANN) LIMIT. City Manager Bludau reported that Article XIIIB of the California Constitution establishes _ a limit on the appropriations of certain revenues that local governments spend. He noted that, in 1991 -1992, the Gann Limit was $6.9 million and today the margin is $30.7 million. He reported that the City does not have a problem with the Gann Limit in this proposed budget and is under by $30 million. He pointed out that not all revenues are subject to the Gann Limit. Mayor Bromberg opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Adams to adopt Resolution No. 2003 -27 approving the City's Appropriation (Gann) Limit for the 2003 -04 fiscal year in the amount of $30,781,765. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Ridgeway Volume 56 - Page 213 INDEX Res 2003-27 Appropriation (Gann) Limit (40) City of Newport Beach City Council Minutes June 10, 2003 V. uUN'1'1NUEV buU 51NE;!J 19. APPOINTMENTS BY THE CITY COUNCIL TO ENVIRONMENTAL QUALITY AFFAIRS CITIZENS (EQAC) ADVISORY COMMITTEE AND THE AVIATION COMMITTEE. 20. Council Member Adams asked whether staff has evaluated the current committee compositions relative to the redistricting. City Manager Bludau indicated that they were waiting for the redistricting to take place. Council Member Adams asked if Council will take on committee reappointments to conform to the redistricting or will the current appointments remain. He asked for a report at the next meeting that outlines the ramification of the new districts. Mr. Bludau indicated that this would take more time. Mayor Bromberg noted that he spoke with the City Clerk who told him., that there are applications on file from people who live m East Santa Ana Heights. Further, they can be appointed since they would not take office until July 1. Council Member Adams suggested that staff evaluate all the appointed positions that are by district and make some recommendations on how to resolve it or proyide alternatives. City Attorney Burnham noted that an option can be to add a sentence to the policy that states that existing appointments by district would not be obviated or eliminated by virtue of redistricting, This would grandfather the current appointments - Council Member Adams reported that he has a couple of candidates for his EQAC appointment, has phoned them, and is trying to set up a meeting. He stated that he hopes to have an appointment at the next meeting. Recognizing that East Santa Ana Heights has people interested in being on the Aviation Committee, he indicated that he would like to talk with them since it makes sense to have someone from Santa Ana Heights on the committee. Council Member Webb indicated that he does not have an EQAC appointment. It was the consensus of Council to continue this item to the June 24, 2003, meeting. BOARD AND COMMISSION SCHEDULED VACANCIES. Mayor Bromberg reported that the Ad Hoc Appointments Committee consisted of himself and Council Members Webb and Adams. He stated that they received 101 applications for a handful of openings and most of the applications read like "Who's Who ". He indicated that they could not interview everyone, but interviewed 31 people. Regarding the Planning Commission, Council Member Adams noted that his motion will also include the committee's recommendation for Council to each have three votes and the third highest vote - getter will serve the one -year term. He clarified that a Council Member cannot Volume 56 - Page 214 fi►117D11 EQAC /Aviation Committee Appointments (24) Board & Commission Scheduled Vacancies (24) City of Newport Beach City Council Minutes June 10, 2003 vote three times for one person. Mayor Pro Tern Ridgeway requested that the maker of the motion include the addition of Jeff Cole to the list of Planning Commission nominees. He reported that Mr. Cole has been interviewed three times, short listed twice, and former Council Members Debay and Glover told him to stay with it. Motion by Council Member Adams to confirm the following nominations made by the Ad Hoc Appointments Committee, as well as the Civil Service Board; to give each Council Member three votes for the Planning Commission appointments, with the third highest vote - getter serving the one -year term due to the unscheduled vacancy; and to add Jeff Cole to the list of Planning Commission nominees: Board of Library Trustees [2 vacancies] Patrick Bartolic (incumbent) Karen Clark (incumbent) Nancy Jones Kathleen Peterson City Arts Commission [1 vacancy) Wendy Brooks Kathy Poppers Civil Service Board [1 vacancy — Civil Service Board Nominee] Douglas Coulter James Dunlap, Jr. (incumbent) Dayna Pettit Harbor Commission [1 vacancy] Donald Lawrenz (incumbent} Lee Sutherland Parks, Beaches & Recreation Commission [1 vacancy] Gregory Pitcher Steven Rosansky Planning Commission [3 vacancies — (one term ends 6130104)] Robert Badham Jeff Cole Barry Eaton Marc Franklin Robert Hawkins Robert Kahn Earl McDaniel (incumbent) Volume 56 - Page 215 INDEX City of Newport Beach City Council Minutes June 10, 2003 The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 21. CITY HALL FACILITIES SCHEMATIC DESIGN — APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH GRIFFIN HOLDINGS, INCORPORATED (contd. from Study Session of 4/08/03 & Regular Meeting of 5/27/03). City Manager Bludau pointed out that the staff report is about 99.5% the same as the May 27 staff report, except for recommendation #2. He stated that, since there was some discussion as to whether the plan should be on the current site or look beyond this site, staff is looking for direction from Council. Roger Torriero, Griffin Holdings, stated that the only item tonight that is in addition to the information that was presented at the last meeting will be processes and procedures for involving the community in a series of workshops to solicit their input about all the alternatives for the City Hall complex design. He reported that some of the alternatives include the retention of some or all the building "s - Further, they would look at a series of ways to phase the project. Council Member Heffernan stated that, at the. last meeting, the action was for $578,000. He asked if the list will change because there will be more outreach and if they will be doing more or different things based on the revised proposal. Mr. Torriero reported that they always intended on doing all these things, but tonight is an opportunity to provide clarity on what some of those items are. Mr. Torriero reported that Griffin Holdings was selected by a formal request for qualifications and request for proposals process. He stated that they examined the needs, made comparisons to other cities, state, and federal standards, and presented several alternatives. He indicated that a new facility will be far less costly to operate since, over a 40 -year building life, the estimated savings for operating a newly reconstructed facility would be about $4 million compared to operating and maintaining' the existing facilities in their current condition. He reported that a new facility will be less costly to maintain, believing the savings'to be about $3.7 million over a useful lifespan of a building. He stated that the existing buildings create gross inefficiencies and significant productivity losses of about $2 million annually. He noted that, if the City were to recover those moneys through the design of a more efficient structure(s), the $2 million could essentially pay for the new facility. Mr. Torriero reported that the proposed revenue for a parking structure its first year is $210,000 which could pay for two - thirds of the annual debt service of the parking structure its first year, then the parking structure would pay for itself, and later provide Volume 56 - Page 216 INDEX C -3502 BA -072 City Hall Facilities Schematic Design (38/40) City of Newport Beach City Council Minutes June 10, 2003 revenue for the City that could defer maintenance costs. He assured everyone that the public will not be charged for visiting City Hall, explaining that the revenue projections are during the weekends and off hours. He reported that staff conducted a survey and stated that about 3,500 people visit City Hall every week (182,000 visits a year) to do business. Dan Heinfeld, LPA Architects, clarified that the intent was to always have the workshop process to create alternatives and look at architecture, planning, and phasing. Utilizing a PowerPoint presentation, he displayed the schematic design schedule which includes the workshops at the beginning of the process. He reported that the first workshop will solicit input from the public, the second workshop will review the data that was gathered, the third workshop will present the conclusions, and ultimately an alternative will be selected. He stated that the schematic pricing occurs at the end and will be presented to Council in December 2003. Mr. Torriero stated that they conducted preliminary discussions with the adjacent property owner about "squaring" the properties. He reported that a suggestion is to do a net square foot for square foot exchange to give the sites a more regular configuration. He reported that the open space in any of the scenarios that were looked at versus the existing open space is increased by about 25 %. He added that they would have an even greater opportunity if they were able to create some efficiencies in the site boundaries. He reported that, if the exchange occurred, there may be an opportunity to talk with the adjacent property owner about repositioning the projeci so the City Hall site and the adjacent site could almost become a Town Square. Mr. Torriero emphasized that the action tonight will not approve a new City Hall, but further develop information to make a decision later on as to whether there should be a new City Hall and also educate Council and the community on the opportunities and constraints. He stated that they are recommending that they look at the schematic design of the project only; look at the current site as the site for future design work and study; authorize staff and Council to have non - binding discussions with the adjacent property owner; schedule workshops when appropriate; appoint a Building Committee that is comprised of the Mayor and two Council Members; and have staff and the consultant present the information so Council can decide to proceed with the project, defer the project, put the project on hold, retire the project, or none of the above. Mr. Torriero explained that they are assisting with six other city halls and he finds that it is a good idea to have a Building Committee to participate with his team and the workshops. Additionally, it is a good way to keep lines of communication current. Council Member Adams asked if financing information will be provided as part of the final deliverable product. Mr. Torriero stated that they have not been charged with that, but they will work with staff to come forward with financing representation. He stated that they would be well served if a Building Committee was appointed and one of the INDEX Volume 56 - Page 217 I City of Newport Beach City Council Minutes June 10, 2003 INDEX members had extensive financial acumen. Council Member Heffernan asked, after the workshops are complete, what happens if there is not overwhelming community reception for doing the project or there are adverse economic situations that makes the City less inclined to do it. Mr. Torriero reported that the City has the right contractually to terminate the contract at any time. Council Member Nichols believed that Newport Center was designed with a complex for a potential City Hall. Mayor Pro Tem Ridgeway reported that there is a Civic Plaza, but it was never designed for City Hall. Ron Winship stated that he watched the last Council meeting and indicated that the City chose consultants that are intelligent. Noting that there are height limitations and the parking structure should not exceed two stories, he suggested placing another story below ground to make it three stories. He suggested that, if the project and the adjacent property is going to go big, a bridge be built to go to the other side. Susan Taylor reported that she toured the existing facility yesterday and was stunned. She stated that the fact that staff can function in those facilities says a lot about how good and dedicated they are. She indicated that the nicest thing she can say is that the roses out front look good. She encouraged Council to proceed with this - contract because there is clearly a need to at least gather all the information to make a good and intelligent decision. She stated that, for years, she has watched the commercial areas limp along and. 'has heard one proposal after another to bring Lido Village back to life but nothing happens. She believed that the possibility of developing a new City Hall and surrounding facilities could bring a lot of life back into this part of town. She added that Newport Beach deserves this. Mayor Bromberg invited anyone take a tour of City Hall. Regarding recommendation #2, Mayor Pro Tem Ridgeway stated that he is going to, recommend that the focus be kept in the older part of town /on / . the current site, with the premise that the Town Square be at this location. Regarding the committee, City Attorney Burnham recommended bringing the matter back at another Council meeting. 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) determine that no further investigation of a possible site for City Hall off the current Balboa Peninsula campus was necessary; 3) 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; 4) 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; Volume 56 - Page 218 City of Newport Beach City Council Minutes June 10, 2003 INDEX 5) authorize staff to engage discussions with Fritz Duda, owner of the Via Lido Plaza center, regarding a lot -line adjustment: and 6) direct staff to schedule a series of community workshops regarding the planning and design of the project. Council Member Proctor stated that he seconded the motion because the facilities are in dyer need of repair or remodeling. He agreed that this is not the right economic time to spend the money, but the interest rate is at the point now that moving forward seems to be a good idea. He stated that, when it comes time to make a decision, the bigger economic picture can be looked at and the City may make a decision that winds up being a good economic one. He emphasized that the City is only moving forward with a plan so it is in a better position to evaluate all the factors when it is time to make a final decision. Council Member Webb stated that he is not very supportive of demolishing all the facilities and starting over. He indicated that he likes the historical character of the old City Hall building, even though it needs a fairly significant amount of refurbishment to bring it into modern standards, but it is no where near its age limit as far as structural ability. He stated that he supports the concept of increasing the square footage of City Hall, noting that he worked in it for a number of years. He added that the 62,000 square feet that is being proposed for the overall concept is pretty 'close-, however, he would like to see an alternative looked at in which Buildings A, B and C remain, Buildings D and E are torn down, consideration be given to constructing a 32,000 to 35,000 square foot two or three story building, and a smaller parking structure utilizing some of the existing parking.onsite be considered. He agreed that the boundaries can be modified with the adjoining property so it is more feasible to put in a parking structure. He believed that the City can do this without starting over from scratch. Council Member Heffernan stated that he will be voting against this tonight since the country is at a nine -year high unemployment rate, UCLA's California economic forecast is dismal, and the picture from Sacramento is bleak. He noted that rates are low now, but the picture will not get better once rates go up. Further, compound this with the Ca1PERS fiasco where' 30% of their principal is gone. He stated that there is a multi - million dollar increase just this year and noted that this will increase next year. He believed that, in these times, it is time to be prudent. He noted that the cost of this contract is almost the amount that is available for the budget's supplemental list. Mayor Bromberg stated that he is going to support the motion because he does not know if there is ever a good time to look at spending $30 million on anything; however, this is only to go into this step -by- step. He indicated that the City needs to look at the big picture, the future of Newport Beach, and what is important for Newport Beach. He reported that, of the 34 Orange County cities, Newport Beach will fair better than any other city because of the fiscal conservativeness of the City. He pointed out that this is about the future of the City. He stated that building a new City Hall is not an easy decision and this is why it is Volume 56 - Page 219 City of Newport Beach City Council Minutes June 10, 2003 important to do the public outreach. He indicated that, because of fiscal conservatism, the City is able to take advantage of the rates when other cities cannot. He believed that this is the best for the people of the City. The motion carried by the following roll call vote: Ayes: Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: Heffernan Abstain: None Absent: None Mayor Bromberg requested that a report come back at the next meeting to form the committee. i P. CURRENT BUSINESS 22. PROFESSIONAL SERVICES AGREEMENT AND BUDGET ADJUSTMENT FOR GENERAL PLAN UPDATE AND ENVIRONMENTAL IMPACT REPORT. Planning Director Temple reported that the staff report includes the professional services agreement and the scope of services proposed by EIP Associates who sets the;work program, scheduling, and detailed budget for the entire General Plan Update process, including participation in community outreach, meeting with the General Plan Update Committee (GPUC) and'•the General Plan Advisory Committee (GPAC), and preparing all the planned' documents and environmental impact report. She -noted that a bulk of the funds are coming from the reserve fund and will ba placed in this year's budget and encumbered. Further, ther9 are existing funds in this year's professional services budget, as well as additional funds put into the professional services account for printing newsletters and other documents. City Manager Bludau clarified. that the money is- coming from unappropriated reserves which is money that.has been taken in this year but has not been budgeted. He stated that they always knew that this expenditure was coming, but they did riot know how much it would be and expected it to A be sizable. Council Member Adams stated that he will be moving the action tonight. tie noted that he is the Chair of GPUC and they unanimously voted to proceed with the EIR. He stated that he knows Woodie Tescher of EIP Associates professionally and believed that there could not be a better person helping the City with this effort. Mayor Bromberg stated that he is on GPUC with Council Members Adams and Heffernan, and they have gotten to know Mr. Tescher very well. Mayor Pro Tem Ridgeway reported that the scope of work is 55 pages and is detailed. He stated that he was trying to understand why the contract was so expensive, but after reviewing the scope of work, budget, and schedule, it seems comprehensive. He indicated that citizens have called him regarding the costs, he promised them that he would look into it, and now he does not know how the contract could be less. Volume 56 - Page 220 INDEX C =3620 BA -077 General Plan Update & Environmental Impact Report (38/40) City of Newport Beach City Council Minutes June 10, 2003 INDEX Council Member Heffernan asked what the total cost for the General Plan is targeted to be and when is it expected to get done. City Manager Bludau reported that it is anticipated to be completed in the middle of the 2004 -2005 fiscal year. Mr. Bludau stated that, with this appropriation, the City has spent about $600,000, but will probably spend about $2 million total. Ms. Temple explained that the studies conducted so far for the Local Coastal Plan (LCP) will be used as part of the baseline information for the General Plan Update. She stated that, through the LCP effort, the City is not making any changes to the City's existing General Plan Land Use Element. She indicated that this is being done so the LCP process is not viewed as preempting the efforts of the General Plan Update. She stated that the downside is that, once the General Plan process is completed, the City may be confronted with internal consistency amendments to the LCP. Mr. Bludau noted that one year of the process was devoted to public outreach to ensure that everyone had the opportunity to provide input. He believed that the City is undertaking the General Plan in a more comprehensive, detailed manner than he has ever seen before. Council Member Proctor stated that it seems like a large sum of money and asked what other cities have done and if this is in line with other cities. Mr. Bludau pointed out that the money will be spent over three or four years and the General Plan should last about 20 to 25 years. Mr. Tescher reported that Riverside County spent about $28 million and Azusa spent about $1.6 million. He believed that the City's General Plan is about the same amount as most other cities. He stated that communities that are just fine tuning an existing General Plan are spending about $400,000. Mr. Tescher noted that they have had a major investment in the committee meetings and reported that the EIR is about 15 -20% of the cost. He added that the EIR is a requirement of the CEQA process. Council Member Nichols hoped that there will be traffic and economic studies, and asked if they will be involved from here on. He read a part of the LCP that states that it shall have precedence over the General Plan, and asked how difficult it would be if it needed modifying. Mr. Tescher stated that the initial traffic studies and fiscal analyses have been completed, but will continue throughout the process. He indicated that, as they identify various options for future growth in the City, the traffic, fiscal, and economic consultants will use the model to test the impact of each of the options. He stated that information will be provided to the committees and during working sessions with Council. Regarding the LCP, Ms. Temple reported that it is a document to address the requirements of the California Coastal Act of 1976 and the statement was intended to provide that, when implementation or planning is done by the City in order to be compliant with the Coastal Act, the law necessitates that those take precedence over any other local policies. She stated that communities deal with this by making them internally consistent so there aren't any precedence decisions to make. She noted that the LCP must receive approval from Council and the Coastal Commission. Volume 56 - Page 221 City of Newport Beach City Council Minutes June 10, 2003 Dolores Otting stated that the fiscal study was presented at the GPUC meeting and she had concerns relative to Newport Coast and how the money that they talked about did not match the moneys that the City said were there. She indicated that the City is spending close to $2 million and asked where the update is. She noted that the traffic study was presented at the EQAC meeting and she recognized that the study always mentioned 13 out of 100 cars ending up at one spot in Corona del Mar. She requested updated information. She indicated that she was on the internet and other cities throughout the country were already done by 2000. Mayor Pro Tern Ridgeway agreed that there was an inconsistency in the current economic analysis of Newport Coast versus the original economic analysis. Mayor Bromberg" asked that Mr. Tescher have this information available at the next GPUC meeting. Barry Eaton, Chair of the GPUC Scoping Subcommittee, stated that the proposal came from the scope his committee prepared. He noted that there are 17 issue areas (page 34) and 15 geographic'areas (page 20), this is a lot of work, and this is part of the reason why the cost is so high. He pointed out that there is also a $50,060 contingency budget that is not included in the figures being allocated tonight. He believed that the City may need to dip into this money because there are only three runs of the traffic model in the plan now, but there may be a need for more since there are 15 different areas looking at land use alternatives. Tom Hyans campaigned for Mr. ,Eaton's consideration onto the Planning Commission. He believed that Mr. Eaton is yery,kn'owledgeable and experienced, and deserves his shot on the Planning,Commission. Motion by Council Member Adams to 1) approve the Professional Services Agreement (PSA) with EIP'Associates for the General Plan Update and its EIR; and 2) approve a budget amendment (BA -077) transferring $635,193 from the., General Fund Unappropriated Reserve to Account No. 2710 - 8293;, and :$55,000 from the General Fund Unappropriated Reserve to Account No. 2710 -8080 for publishing and ,printing expenses for two newsletters and project related in -house printing costs, ' The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent," None 23. APPOINTMENTS TO THE COASTAL/BAY WATER QUALITY CITIZENS ADVISORY COMMITTEE. Mayor Bromberg stated that he will be resigning from the Coastal/Bay Water Quality Citizens Advisory Committee, he asked a Council Member if he wanted to serve on the committee, but the Council Member wanted to think about it. He asked that recommendations 1 Volume 56 - Page 222 INDEX Coastal/Bay Water Quality Citizens Advisory Committee (24) City of Newport Beach City Council Minutes June 10, 2003 and 3 come back at the next meeting. Council Member Proctor indicated that he wants to appoint Jim Miller to the committee. Motion by Mavor Bromberg to 1) continue the appointment of a Council Member to the vacant Council seat on the Coastal /Bay Water Quality Citizens Advisory Committee to the June 24, 2003, meeting; 2) confirm the appointment of Jim Miller as Council Member Proctor's appointment to the Coastal/Bay Water Quality Citizens Advisory Committee; and 3) continue the designate of the Vice - Chairman of the Coastal/Bay Water Quality Citizens Advisory Committee to the June 24, 2003, meeting. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 24. REPORT FROM CITY ATTORNEY ON TESTIMONY GIVEN BY COUNCIL MEMBER NICHOLS AT THE PLANNING COMMISSION MEETING OF MAY 22, 2003. City Attorney Burnham reported that the Mayor asked him to provide a report on testimony that Council Member Nichols gave to the Planning Commission. He stated that he reviewed the transcript of the Commission hearing and looked at the staff reports for the matter that was being considered and the one that was the topic of conversation between Council Member Nichols and Planning Commissioner Tucker. He indicated that, in the documents that he reviewed, there is evidence that Council Member Nichols did imply that one or more Commissioners had accepted bribes or money on that matter. He noted that Council Member Nichols has since apologized in the media and in a letter to Council and the Commissioners. However, at the time the comments were made, he believed there was a clear implication that Council Member Nichols felt Commissioners had taken bribes and engaged in inappropriate conduct. City Attorney Burnham believed that the only option available to Council is to adopt a resolution at a future meeting censuring Council Member Nichols for the comments in which he had no factual basis. He indicated that he wrote in the report that he believes that the Mayor would have the authority to remove Council Member Nichols from committee appointments, but pointed out that the Mayor has this authority in any event because Council Members serve at the Mayor's pleasure. Further, he indicated that there is no effective way to prevent conduct of this nature in the future since Council Member Nichols had a First Amendment Right to appear at the Commission hearing and had a First Amendment Right to testify. City Attorney Burnham stated that, if Council Member Nichols was a public employee and said what he said without any factual basis, the City would have the Volume 56 - Page 223 INDEX Council Member Nichols Testimony (33) City of Newport Beach City Council Minutes June 10, 2003 right to discipline that employee. However, there is nothing Council can do to prevent Council Members from testifying before boards or commissions. He added that some of the courts have said that council members have the duty to explain their position on issues of public importance to the public. He reported that one of the options available is to establish a code of conduct that is consistent with the Constitution and statutes, and Council's enforcement mechanism in his opinion would be limited to censure. He added that there is also the possibility for Council to consider a policy requiring disclosure of any illegal activity by an official or employee so, if there is suspicion that there is wrong doing, it is reported to the Police Department, not to the Planning Commission or some other body. Mayor Bromberg stated that he asked City Attorney Burnham to do his due diligence, the Commission consists of seven people,,an accusation was made, and he felt it was his responsibility _to bring this before Council without being judgmental since Council is the policy makers and is held to a higher standard. Mr. Burnhani indicated that he has his . own copy of the transcript. Mayor Bromberg added that the Commission meeting tape is available for listening, but he will only have it played if a Council Member asks to hear it. He noted that the options are that Council can do nothing and move on, discuss and._debate the issue and go no further, or discuss and debate the issue and go further.,,. Mayor Pro Tem Ridgeway asked if Council Member Nichols' comment was protected. Mr. Burnham 'stated' that Counc_il'Member Nichols' testimony, like anyone else's who speaks before, the Commission, is immune from liable or slander by virtue of Section 47 of the Civil Code which indicates that there is an absolute privilege given to testimony before official proceedings and litigation.. He added that there are four separate categories of hearings or proceedings where the testimony or statements given are,entiiled to absolute protection. He clarified that this is because Council Member Nichols spoke during a public hearing, not because he is an elected official. ' Council Member Nichols stated that, when you speak at the podium, you are given three minutes and it was hard for him to give all his facts. He indicated that he brought up some of his facts and brought up more later and distributed them. He stated that his comments were not to the effect that a Commissioner or the Commission, as a total or any group, accepted a bribe. He indicated that his context was about equity and that you would have to hear more of the tape than just one cut. He believed that right now because of the way the Planning Commission is constrained, they do not have full authority over what is happening at the Modifications Committee, and Council has more authority than they do. He expressed concern that certain zonings get huge allowances; however, we don't see equity for the next one for a supposed lack of reason that is legally constrained. He stated that this is what he is speaking about and he brought up several properties. He noted that his statement would imply that someone was paying the Commissioner(s) to uphold City policy, but stated that, if you were going to pay someone, you would pay them to approve the variance. He believed that the logic Volume 56 - Page 224 INDEX /l City of Newport Beach City Council Minutes June 10, 2003 INDEX that the statement was made does not hold. He clarified that he is not saying he meant to make that logic, but he meant to say that this was inequitable and doesn't look equitable in any sense. He indicated that he checked a little bit of the tape and has never seen the full text of his statement, but believed he said, "This doesn't look good, it looks like you're taking money for this one ". He reiterated that his context was about equity and he even said that when he sat down. He stated that he is talking about getting equity in the City's decisions through the Modifications Committee. He noted that everything that they do can be reviewed by the Planning Commission; however, if the Commission does not have the same authority, they should've turned down every Modifications Committee hearing that asked for a variance. He indicated that the Commission does not have the right to give these so they couldn't pass them on to the City Council. Mayor Bromberg stated that he spoke to Council Member Nichols about this, but it now sounds like, if the Planning Commission is not giving equity the way Council Member Nichols feels they should, then someone must be taking money for doing it that way. Council Member Proctor stated that he has spent 32 years in a courtroom where there are constraints and, if someone says something that they may not mean at the time, they still suffer sanctions immediately. He indicated that Council has certain responsibilities and professional obligations and that it does not seem like Council Member Nichols is getting it. He stated that there is an inherent problem with being on a City Council where you can oversee the appointment of a Planning Commissioner and then stand in front of them to make a pitch, suggesting that perhaps they are taking a bribe because they don't agree with you, and then come back to Council and ask to call the matter up for review. He. stated that this seems inappropriate. Further, to try to defend the position by saying "I made a mistake and I've learned my lesson," is probably the part that bothers him the most. He indicated that perhaps the public now perceives that there is something going on with. the Commission because Council Member Nichols suggested it. He added that Council Member Nichols does not seem humbled by that fact or the inappropriateness of appearing before the Commission because of his capacity on Council. Council Member Nichols stated that he went to the meeting to hear about some capital cost items and not the item he spoke about. He indicated that he learns a lot more when he goes to a committee meeting because they have the full set of plans and he hears the opinions from people: skilled on the issue. Regarding the issue he spoke about, he stated that the applicant wanted a small variance that would cause less problems than any other way since they were prevented from using their upper storage facility. Mr. Burnham pointed out that no one can talk about the particular matter that has been called up and expressed hope that the focus of the discussion would be on what option Council wanted, and not debate the merits or demerits of the item. Council Member Nichols stated that his simile was totally wrong. Further, his frustration was honestly reflected, believing that it is obviously felt in a Volume 56 - Page 225 City of Newport Beach City Council Minutes June 10, 2003 INDEX lot of the community. He indicated that he did not mean to impugn anyone's reputation and that his honesty has not been questioned by anybody in the community. He stated that he is sorry that this happened and that he will try, but he was not violating any Brown Act provisions by going to a commission meeting since there are no Council Members on commissions. He indicated that he is learning about what is going on in the community and believed that it is appropriate for him to testify. Council Member Heffernan reported that he was approached by some of the Greenlight backers to defend Council Member Nichols because somehow Greenlight has thought to have assisted both of.them to hold their Council seats. He stated that he adamantly refused to do so because this issue stands alone and apart from them /Further, he told them that, if this was a condition from Greenlight, then they better count him out because what is done as a Council Memher is independent, of who helped you supposedly gain office. He noted that he practiced law with Planning Commissioner Tucker and knows_ him and his wife very well. He stated that, beyond the statement being protected, the impact of Council Member Nichols' statement carries more weight because he is an elected official. He stated that the impact on Mrs. Tucker from people in the community because of the statement has caused her more than just a little concern. He indicated that Council Member Nichols may be protected and may not be legally culpable for what he has done, but he has to watch what he says. ,Council Member Heffernan stated that he has said a lot of £oolish.things and has learned to hopefully hold his tongue, but when you are in a public forum, are an elected official, and say something like that, it is like saying "I saw you come out of the Four Seasons in the morning with a redhead ". He emphasized ,that Council Member Nichols cannot say those things because they are taken out of context and he needs to weigh what he says. He stated that Council Member Nichols has the right to give his opinion, but how it is said and the context in which it is said can cause concern in the community and can divert this Council from its normal activities. He indicated that,.if Council Member Nichols had said it with a different set of nouns and verbs, Council would not be dealing with this at all and he would have been able to convey the same message. ti. Council Member Nichols stated that he feels properly chastised and will do his best not to have this type of thing happen again. He indicated that he has testified as an expert witness and he never would have made that type of mistake for that kind of testimony. He expressed that he was sorry it happened and will certainly try to prevent it from happening again. He added that he apologized to the Commissioner and Commissioners, noting that he met individually with them before this occurred and sincerely told them that they are all doing a good job and are all good people; however, his statement came out exactly opposite. Ron Winship stated that he has never seen people attack another Council Member because he might have said something that might have meant something they didn't like. He indicated that apparently you guys are doing impropriety things. He listed what other city officials Volume 56 - Page 226 City of Newport Beach City Council Minutes June 10, 2003 INDEX have said and done, and told Council to work with people even if they do not like what they believe in or say. He stated that Council Member Nichols, as a citizen, has the right to go to any commission meeting if he is not violating the Brown Act, and hoped that he uses his due diligence that he was attempting to do. He asked Council where the oversight is for the Planning Commission or any of the committees that make any judiciary decisions within the City, noting that Council chooses who is on the committees. Mr. Winship stated that, for sake of argument that money was taken by the Planning Commission and Council Member Nichols saw it, he said it "looks like ", but didn't say "money was taken on this one ". He indicated that he does not know where the City Attorney got his interpretation of the law, but believed there are other legal minds in the City that might argue with him. He stated that he is disappointed in Council Member Heffernan for attacking someone for saying something about someone he knows and taking it personally. He believed that, if Mayor Bromberg spoke at a Civil Service Board meeting and said that an employee paid off one of the commissioners to keep their job, he would not be skewing the Mayor or anyone else because they would be doing their job and that is what Council is paid to do. Mayor Bromberg expressed his surprise that Mr. Winship or anyone else would suggest that the policy makers should not be outraged that a personal attack has been made about the integrity and honesty of one of the City's own officials. He expressed the opinion that Mr. Winship's statements were offensive. Regarding the Civil Service Board, he stated that they are the final word in safety personnel matters, their decisions cannot be overturned by the City Manager or Council, and any questions regarding their decisions must be taken to court. He reported that, in 1997, they dealt with a disciplinary action by a police officer and a Council Member at that time attacked the Civil Service Board. He indicated that the police union found out about it, filed charges, and ultimately it was enough for the District Attorney to conduct an investigation. He noted that Mr. Winship's analysis does not fit. He agreed that no crime was committed. Council Member Heffernan stated that Council may be paid to take it and listen, but it is not the obligation of an unpaid Planning Commissioner. He noted that, if the City loses capable Planning Commissioners because this gets out of hand and the City turns into the Los Angeles City Council, then the City has gone down the tubes. He stated that the ultimate downside is that the City will have less capable people serving on boards and commissions. He noted that Council's job is to take it, but he does not feel it is open season on the 134 volunteers on the boards and commissions. Dennis Baker, City Arts Commissioner, encouraged every Council Member and citizen that has something to say to a commissioner to say it to the commission. He indicated that he disagrees with what Council Member Nichols said because it was hurtful; however, he hoped that Council's reaction is not to establish a decorum policy that will prevent Council Members from speaking before commissions. He indicated that he weighs who is speaking, what they say, their expertise, and standing Volume 56 - Page 227 City of Newport Beach City Council Minutes June 10, 2003 on the issue, not because they sit on the Council. He stated that he recognizes the difference between the Arts Commission and the Planning Commission which is a legislative body. He indicated that Council needs to have faith in the people they appoint to the Planning Commission to weigh everything and not be intimidated by a Council Member. He believed it would be detrimental to say that a Council Member cannot speak in front of a commission. Council Member Proctor believed that everyone has the First Amendment Right, but you have to recognize what your circumstances are, the potential for a conflict of interest, to tread with more circumspect, and use better judgment. Madalene Arakelian stated that she has run for office four times and understands you have to couch what you say because the' public perceives your comments in many different ways.. She indicated that Council has made it clear that Council Member Nichols used poor judgment, pointing out that he is inexperienced in the public forum. Noting that she ran with Council Member Nichols, she stated that she has never met any more of a gentleman or intelligent man than Council Member Nichols. She indicated that you have to consider the loss of a good Council Member who got elected by the people. She pointed out that he apologized and asked that Council give him the chance to go forward and realize that he can't say,certain things unless there is proof. She believed that Council should drop it and go forward and become a Council group with everyone participating, Robert Walch stated that maybe Council Member Nichols does not get it, but he believed this is getting out of hand and requested to move on. He requested that this Council not degenerate into a situation of political polarization and divisiveness since it could ultimately split and harm the City. Further, the media loves'this stuff and asked that the City not give them the satisfaction. He believed that action could intimidate Council Member Nichols and reduce his ability to properly represent his constituents. He added that.-everyone at one time has thought or said the same things since so many government officials have been convicted of taking bribes or giving sweetheart deals to their buddies. He stated that everyone should engage their brains before they open their mouths. He indicated that he does not support any censuring that is imposed by a local body as he believes it invites legal challenges and unfavorable media scrutiny. Brian Clarkson stated that, as defenders of free speech and the Bill of Rights; Free Newport supports Council Member Nichols. He indicated that Council Member Nichols attended the meeting as a visitor, not as a Council Member, and admitted he made a mistake and apologized for it. He asked if there is anyone on Council who believes that there has not been any improprieties or false statements made by Council in the past. He noted that on Free Newport.com, they have Council Member Proctor grossly misstating the results of the Fourth of July survey, but there has been no clarification, apology, or corrective action by Council. He asked how Council decides which false statements they are going to punish. Volume 56 - Page 228 INDEX i •, City of Newport Beach City Council Minutes June 10, 2003 INDEX Jim Hildreth asked it Council Member Nichols' comment about the Planning Commissioner was looked into and stated that it is free speech, although it could have been worded in a different way. He indicated that he was in construction and that rumor has it that this person had the house done and gave a gratuity for it to be done. He added that there are three story homes that received leeway. He believed that Council Member Nichols said something that has been going around and asked that it be looked into. He stated that he knows how free speech is being treated for him when he comes to the podium. He believed that the matter is closed, noting that Council Member Nichols spoke during public comments. He agreed that a Council Member has a certain decorum he needs to follow and believed that Mayor Bromberg has not followed those guidelines during the Balboa Island Parade. He thanked Council Member Nichols and hoped he continues to do fine work. He noted that the community is not here saying they do not like him. Dolores Otting read the letter from former Assemblyman Gil Ferguson which was in today's Daily Pilot entitled, . "Council Should Be Careful When Throwing Stones ". She stated that everyone has times in their life when they experience poor judgment. She indicated that she comes from the east coast where a comment like this would never make a burp in the sound waves. She noted that Council Member Nichols apologized and she feels badly for Commissioner Tucker. She stated that she attended a Planning Commission meeting where Commissioner Kiser was mispronouncing a lot of words and names, and continually said "butcher" instead of "mispronounce" throughout the meeting. She took issue because she believed that a woman had recently been cut up. She indicated that she does not believe that Council Member Nichols really thought that Commissioner Tucker or anyone else got paid off. Laura Dietz stated that she moved to this community because she thought. it was a classy community. She indicated that everyone is human, Council Member Nichols has apologized, and she regrets any harm this has caused Commissioner Tucker and his family. She hoped that Council will act in a classy way. Jean Bruton stated that the City is composed of residents who live here and raise families, not just tourists and businesses. She believed that people should be able to talk and gossip, and can't be afraid of censuring, lawsuits, and being terrified to speak. She stated that the City has an excellent Council with great patience. She believed that Council Member Nichols is one of the few looking out for Old Corona del Mar residents since they cannot get straight answers from City personnel. She added that they trust Council Member Nichols to ask the hard questions they are afraid to ask and they press him to push. She believed that City personnel give them no view protection, noting that her and her neighbors' property values have decreased because of raised grades and residential construction. She stated that there is public wonder and outrage, and questions unanswered. She believed that the City needs a citizens advisory review board like Laguna has in which there are restrictions that cannot be constantly changed. Volume 56 - Page 229 City of Newport Beach City Council Minutes June 10, 2003 INDEX Council Member Adams agreed that a Council Member should not be prohibited from speaking at a meeting. However. if the entire City Council shows up at a Planning Commission meeting, they can sit and listen, but cannot participate in the discussion because of the Brown Act. He pointed out that, if three or four Council Members show up, they have also taken away the Council Member's right to speak at the meeting just by attending the meeting. Council Member Adams reported that he attended a League of California Cities training when he was on the Planning Commission and it was suggested that, as a matter of courtesy, Planning Commissioners do not attend Council meetings and vice versa. He indicated that this has been adhered to for many years. He stated that he does not have a problem with attending meetings, but has a problem with speaking at the hearings. He explained that the time for Council Members to speak on issues is at Council meetings. He stated that the Planning Commission exists, in part, to make recommendations to Council and it does not make sense tb be offering your opinion to a body that you are asking for their independent recommendation. He believed that, out of courtesy to the rights of fellow Council Members, Council should agree not to speak at Planning Commission meetings. He noted that Council Member Nichols harps about equity and believed that it is inequitable for one Council Member to be attending when the others do not have the same right because of the fact that he has shown up. Mr. Burnham stated that the scenario described may prohibit Council Members from speaking if four, or more Council Members attend a Planning Commission meeting. However, he indicated that it would be very difficult for Council to adopt any rule or enforce a rule prohibiting attendance and testimony. He stated that he can write a memo to Council explaining the difference between when the Planning Commission is functioning in a quasi judicial fashion versus when they are functioning in a legislative 'capacity. Council Member Adams believed that it is just courteous not to have a Council Member speak at a Planning Commission meeting, and indicated that he is not saying it should be outlawed: He indicated that he is not supportive of any action tonight, but asked that his Council colleagues consider this. Mayor Pro Tern Ridgeway stated that he does not support any further action, believing that the discussion and public comments were more than adequate. He stated that Council Member Nichols' supporters stated that he used poor judgment. He noted that Council Member Heffernan received a call from Greenlight, but pointed out that they interviewed, endorsed, and financed candidates. He stated that it was explained to Council Member Nichols at the Planning Commission meeting that they had no authority. Mr. Burnham pointed out that Council should not discuss the particular matter that was pending before the Commission because it is coming to Council. Mayor Pro Tern Ridgeway pointed out that the Commission was without authority, but Council Member Nichols wanted them to break the rules/law. He stated that there would be total chaos, especially in his community, if they ignored the rules. He indicated that he defends Council Member Nichols' right to freedom of speech, but common sense tells Council that Volume 56 - Page 230 City of Newport Beach City Council Minutes June 10, 2003 they are in a different environment, are elected officials, rules cannot be broken, and equity has no bearing here. He questioned the people who supported Council Member Nichols and tried to defend breaking the law. Council Member Webb stated that his line of thought was similar to Council Member Adams'. He indicated that Council appoints commissions and committees, and they put a certain amount of trust in those groups. He believed that, if Council comments before them, they should not try to use their position to influence their decision. He noted that it would be appropriate to testify if it was relative to a Council Member's property although he would need to recuse himself as a Council Member. He stated that this is the first instance that he can remember where a Council Member approached the Commission and made these types of statements. He indicated that it is inappropriate and believed that Council needs to have some guidance. He added that tonight's discussion may be sufficient as far as what Council does sap before the boards and commissions, and in trying to assert their position and influence over their decisions. He stated that, if Council disagrees with what the boards and commissions are doing, they have the ability at the dais to make that decision, call the item up, and discuss it in detail. Mayor Bromberg stated that he is content to end this tonight and believed that this does not need to go further. He hoped that something good comes out of this. He stated.that everyone has to recognize that, as elected officials, they are held at a higher standard. He believed that this was handled professionally and'reiterated that Council Member Nichols has apologized. He added that he does not feel Council Member Nichols has a mean bone in his body but just showed poor judgment. Motion by Council Member Proctor to receive and file, and table the report. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Mayor Bromberg Noes: None Abstain: Nichols Absent: None 25. CITY COUNCIL AND PLANNING COMMISSION CALLS FOR REVIEW. Mayor Bromberg reported that Council has a policy in which they cannot take up new items after 11:00 p.m. Motion by Council Member Adams to continue this item to the June 24, 2003, Council meeting. The motion carried by the following roll call vote: Volume 56 -Page 231 INDEX City Council & Planning Commission Calls for Review (68) City of Newport Beach City Council Minutes June 10, 2003 Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols: Mayor Bromberg Noes: None Abstain: None Absent: None 526. APPEAL OF REVOCATION OF SPECIAL EVENT PERMIT #03- 043. This item was removed from the agenda at the request of City Manager Bludau. Q. MOTION FOR RECONSIDERATION -None. R. ADJOURNMENT - at 11:30 p.m., in memory of Sharen. (Sherry) Kerns. The agenda for the Regular Meeting was posted'on June 4, 2003, at 2:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. l' Recording Secretary i `.. Mayor i, City Clerk Volume 56 - Page 232 INDEX Revocation of Special Event Permit (27)