HomeMy WebLinkAbout01 - Amended Minutes - 9-25-12Agenda Item #1
October 9. 2012
City of Newport Beach
City Council Study Session
September 25, 2012
addressed challenges with percentile relationships in data.
Council Member Henn noted the need to maintain flexibility to hire and stated that the
issue of incentive is a very important component that would allow the City to have a base
that is not subject to criticism but is at a level that will retain high - performing people.
He also stated that if the aim is to have a smaller, smarter, faster organization, it
generally means a flatter organization with broader spans of control, wherein it is
important to have higher - performing people at the higher end of the span.
s Amended - - -> Jim Mosher stated that the consultant placed Council Members in the highest band of
executive compensation, noted that the City Charter provides that Council Members
shall receive no compensation for service, indicated that the consultant included benefits
in total compensation, and referenced a letter to the authors of Argument Against
Measure EE that threatened litigation for describing benefits as part of compensation,
3. RESPONSE TO ORANGE COUNTY GRAND JURY- FIRE/EMS.
City Manager Kiff introduced the item noting that it is a Consent Calendar item on the
regular meeting agenda and is being presented herein to expand on the matter, reported
that the Grand Jury report studiad a County -wide perspective on the delivery of fire
suppression and emergency medical services, stated that generally there is agreement
with the report but when responding there are limitations as to what can be said, and
deferred to Fire Chief Poster for a report.
Fire Chief Poster presented a PowerPoint that addressed what the report was about,
what is required of the City, the report's content, the City's response to the three
findings /conclusions, and the City's response to the recommendations.
Council Member Henn noted that the City is ready to embrace the right kind of change in
terms of how the emergency response model is organized within the City.
Fire Chief Poster noted that the framework of the response impacts the City in what it
wants to say and do; but discussion has ensued regarding changes, increasing
efficiencies, and determining a better way to operate.
Council Member Henn encouraged Fire Chief Poster to work as hard and fast as possible
to analyze how the City's response for fire and emergency medical services are organized
and be open to significant change while avoiding the sacrifice of the high level of services
provided to residents.
Council Member Daigle acknowledged the time constraints in connection to the required
responses, addressed the sustainability plan relative to consideration of contractors, and
wondered why other services such as lifeguards have been immune from being
evaluated.
City Manager Kiff stated that the concept of including additional language involving
contracting would be appropriate to include in response to Finding 3, expressed concern
with mentioning other City services in the response, and recommended that the
statement to the Grand Jury be general in nature rather than specific.
Mayor Gardner noted that the response provided is not simply a reaction to the Grand
Jury report; it has been previously discussed due to the evolution of fine services.
Jim Mosher believed that the response to Recommendation Rl will not be implemented
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Proposed increases.
William Dutton commented on his work as a commercial real estate agent and the
affects of raising fees and discouraging businesses to succeed. He spoke in opposition
to the proposed increases,
Duffy Duffield reported the he rents a lot of slips and spoke in opposition to the
proposed fee increases, He stressed the importance of encouraging and promoting
businesses along the waterfront, and believed that the proposed increases will have the
opposite effect. He stated that the fees must be economically feasible in order to
sustain businesses.
Dave New stated that he hopes that Council and staff would negotiate leases and
expressed concern with increased vacancies because of increased costs.
Jack Hochadel, Balboa Boat Rentals, spoke in opposition to the proposed fee increases
and believed that the increases will be passed on to smaller businesses. He expressed
concern with increased vacancies due to the new fees and believed that the increase is
unreasonable.
`ii Amended - - -> Bob MacAvery hoped that Council will consider the issue carefully
Jim Parker, Marina Properties, spoke in opposition to the proposed increases, as well
as the process. He believed that the concerns of marina owners seem be failing on deaf
ears.
Brad Avery believed that the City's intentions are good and that it was unfortunate
that previous Councils did not address the matter. He expressed the opinion that
current rates are at market value and suggested that Council consider spreading the
increase through a longer phasing period.
Gary Pickett addressed the City's process and believed that no business owner could
survive with the proposed fee increases. He addressed the Coastal Land Use Plan
relative to supporting marine use and commented on Mr. Rasmussen's appraisal,
noting that it does not indicate "the greater of'. He believed that the appraisals are
flawed relative to the occupancy rate and land value used, and referenced comments
from George Jones regarding the appraisals and the process. He addressed previous
proposals to the City which have been dismissed despite a commitment to pay higher
tidelands fees. He noted an increase in vacancies and believed that stakeholders are
stuck in a monopoly by the City.
Gary McKitterick distributed copies of his written comments and thanked Council for
considering the matter. He agreed with the conclusion that the fair market rent for
the tidelands should he charged, but believed that there is no competitive open market
in Newport Harbor with respect to tidelands since there is a single landlord with a
single tenant which 'could be considered a bilateral monopoly. He believed that
tenants cannot make decisions because of a lack of information, the water parcel is
restricted, and it impacts the appraisal analysis. He referenced a letter that he
submitted earlier regarding the appraisals. He added that marina owners are being
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alternativei plan.
Motion by Mayor Pro Tem Curry. seconded by Council Member Daisle te., approve the
stakeholders' alternative recommendation that scales from $.75 per square foot in 2013
to $2.00 in `'2013, and includes loase options,
Substitute motion by Council Member Rosansky, seconded by Council Member Selieh
to approve the Committee's recommendation whether it involves 20% of gross revenu o
or of the calculated index.
Council Member Hill expressed support for calculations made on a square- feotagv
basis. He noted that phasing is one of the most important aspects to this and that it
would involve a chsmge• in doing bu;sinetss fov many. He suggested i.hat the rate remain
at $.36 for 2013 and 201.1, and subsequently move foiivard with the recommended
adjustments which will them reach the: 20 % -o£- revenue fair market value in the year
2020. He indicated that this would allow businesses two years to recover from the
current economy and six years to reach the fair market value.
Member Selich t(; focus on the 20% of the calculated index for the total number of
marinas in the Harbor, to wait one year hofore the phasing period begins, and extend
the, phasing period to the year 2020.
In re,�ponsr, to Council Member Daigle's inquiry regarding use of an index by other
marinas, City Managerr Kiff explrreined the methodology, but stated that fair market
value has not b.cn reached. Mayor Gardner indicated that she does not support
waiting one year to begin the increase, but believed that extending the phasing
timeline would be more valuable. She! indicated support for the original substitute
mution and allowing an extension of the phasing timeline.
Gary Pickett slated that it is difficult to compete with'lhe Irvine Company and believed
that marinas would be willing to volunteer their revenur numbers. He added that 20%
is still unacceptable; when others use 19% and 9.5 %. He indicated that he would like
time to consider th-: various proposals presented.
Council Member Henn reiterated that 20% i :; the rightt number and stated that he
would prefer to have actual revenue numbers to calculate the index.
Council Member Rosansky emphasized that the rovenues would be needed for multiple
years in order to calculate the index.
Mayor Gardner stated that she will not support the amended substitute motion since
Amended - - - -> she does not agree with either the stated 20% or the extension of one year to
implement the increases.
Mayor Pro Tern Curry indicated that he will not support the amended substitute
motion.
Council Member Daiglc stated the she will not support the substitute motion since it
supports the 20% rate.
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Mayor Pro Tern Curry agreed with removing the issue of RV parking from the plan and believed
that the City needs to invest in the neighborhood to revitalize the community and keep it strong
and vibrant,
Council Member Daigle agreed with removing the issue of RV parking from the plan, believed
that zoning -based changes are good, expressed concerns with the recommendations, and stated
the need to be consistent in other areas of the City.
Council Member Selich acknowledged that there is a lot more work to be done on this issue, and
believed that it is important to move forward and allow the proposed Balboa Village Advisory
jj��
Committee to consider the various elements.
AAmended - - -> Motion by Council Mamhnr uaar
u�u u I c,ouucrl Member Henn to a)
adopt Resolution No. 2012 -84 approving the Balboa Village Master Plan consistent with the
recommendations of the Neighborhood Revitalization Committee and finding that the action is
exempt from the California Environmental Quality Act ("CEQA ") pursuant to Section 15262
(Feasibility and Planning Studies) of the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3; b) adopt attached Resolution No. 2012.85 creating the Balboa Village
Advisory Committee; c) confirm the Mayor's appointment of Council Member Henn-and one
additional Council Member to the Balboa Village Advisory Committee ( "BVAC "); d) direct the
City Clerk to post and publish a Request for Applications for the BVAC; and e) remove the
Residential Parking Survey from the plan.
The motion carried by the following roll call vote;
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Council Member
Selich, Council Member Henn
Noes: Mayor Gardner, Council Member Daigle
This item was further discussed during Motion for Reconsideration.
16. ANNUAL MONITORING REVIEW OF DEVELOPMENT AGREEMENT NO. 14:
NEWPORT COAST (PA2011 -030).
Community Development Director Brandt reported that the annual agreement is reviewed in
October, addressed findings according to the last review of the item by Council, discussed a
detailed compliance reported conducted by staff, and provided recommendations_
Hearing no testimony, Mayor Gardner closed the public hearing,
that the applicant has demonstrated good faith compliant with the terms of the Deve op ent
Agreement and receive and file an annual report of the Annexation and Development
Agreement.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
17. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM YEAR 2011 -2012,
CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER).
Community Development Director Brandt reported that the item is an annual report required
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Amended - - -> Title: Aaron C. Harp, City Attorney
IIL RECESS
IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
V. ROLL CALL
Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
VI. CLOSED SESSION REPORT - City Attorney Harp reported that there were no reportable
actions.
VII. PLEDGE OF ALLEGIANCE - Council Member Hill
VIII. INVOCATION -Mr. Frank Carpenter
IX. PRESENTATIONS
Library check from the Newport Beach Public Library Foundation - Library Services
Director Cowell provided a list of items and services that the check from the Foundation will fund
and invited Foundation Director Tracy Iieya to address Council. Foundation Director Keys presented
a check in the amount of $220,000.
Coast Colleges, Chancellor, Dr. Andrew Jones, and Public Affairs Director, Dr, Martha
Parham -. to speak about their upcoming bond measure on the November 2012 baIIot - Dr.
Martha Partham reported that Dr. Jones was unable to attend and introduced Dr. Dennis Harkins
who was present. She noted that she is not asking for endorsements but rather simply wants to
provide information, acknowledged the attendance of Trustee Dave Grant who represents Newport
Beach, addressed increased costs of higher education noting that local students are relying more on
community colleges than they have in the past, presented a brief history of the college, addressed job
training and workforce preparation noting that community colleges trains nearly 80% of first
responders in the state and nationally, noted problems in the economy, and stated that community
colleges can no longer rely on Sacramento to adequately fund local colleges. She reported that the
Coast College Board has approved a Bond Measure for the November ballot and if it passes, it will
Provide for upgrades to technology, support for active and returning veterans, and repair and
upgrade of aging classrooms. Dr. Dennis Harkins. President of Coast College; reported that the
Measure supports the college district's strategic plan and will set the college up for the next
century. He expressed his appreciation to Council and the City and hoped for its continued support.
Proclamation to Esther Lofgren for earning a gold medal at the London Olympics - Mayor
Gardner presented a proclamation to Esther Lofgren for earning a gold medal at the 2012
U.S. Olympics in rowing. Ms. Lofgren expressed her appreciation, stated that it was an honor to
represent the Country and the City of Newport Beach, and presented the City with a signed
photograph of the team's boat.
X. NOTICE TO THE PUBLIC
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Council Member Hill expressed concern regarding the security deposit and City approval of
maintenance that requires a percentage of parking and wage rates, He indicated that he has
faith in the concept of the index and believed that agreements can be reached by working
together.
Council Member Daigle addressed changing the index to exclude the Irvine Company and
include the Balboa Yacht Basin.
Council Member Henn agreed with malting the lease simpler and shorter, addressed
misconceptions about the lease, noted that there is no intent for the City to charge 20% of
parking revenue but rather that the City should be compensated for slip rental, indicated that
there is no intent to charge for pass - through expenses, addressed the requirement for paying
prevailing wages on construction projects, noted that it is designed to be a template and that
there are elements that may not be applicable to the lease of marinas, stated that each lease
will be tailored to individual circumstances, addressed the proposed index and the base against
a percentage rent, noted that the index calculation is simple, hoped that all will be able to reach
a conclusion regarding the index, stated that the purpose of the meetings is to obtain public
input, and summarized the issues to be addressed.
Mayor Pro Tom Curry noted that there are a lot of problems with the proposed lease and that it
should be re- written.
Discussion followed regarding clarification of known values and the need for them to be
verifiable.
Council Member Henn encouraged the public to submit written comments to the City
Manager's Office.
• Amended - - -> Motion by Council Member Henn, seconded by Council Member Daigle to continue this
item to a Special Meeting.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosausky, Mayor Pro Tern Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
19. CITY HALL COMPLEX RE -USE (PA2012 -031) - 8800 NEWPORT BOULEVARD - 475
32ND STREET,
Council Member Henn recused himself from hearing the item noting that he has a business
relationship with a business in Via Lido Plaza.
Community Development Director Brandt introduced the item, presented background,
addressed release of final documents providing support for the conclusions made earlier, and
presented recommendations as stated in the report.
Mayor Gardner noted the preferred option and asked whether further consideration should be
made regarding apartments.
Council Member Selich stated that both options; that being a hotel or apartments, should be
considered,
Council Member Hill agreed with Council Member Sellch's comments, addressed the need for
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Council Member Selich, Council Member Daigle
20. IMPLEMENTATION OF NEGOTIATED CHANGES TO EMPLOYEE RETIREMENT
BENEFITS THROUGH AMENDMENT OF THE CONTRACT WITH THE CALIFORNIA
PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS); AND ADOPTION OF A
DEFINED CONTRIBUTION PLAN WITH THE PUBLIC AGENCY RETIREMENT
SYSTEM (PARS),
Mayor Pro Tem Curry expressed support for the item and noted significant changes and success
of Council in the negotiations.
Jim Mosher discussed how the changes relate to Council as City employees, stated that Council
Members are not employees, questioned whether Council should receive health and pension
benefits, questioned tho category of employee in which Council belongs, and stated that
Measure EE will not clarify the issue.
City Attorney Haip explained that the IRS designates all Council Members as employees and
the City is required to offer a retirement package for Council Members which is the PERS
retirement package which is not involved in Measure EE.
Richard Nichols agreed with Mn Mosher's comments, addressed the State's pension Reform
Act, stated the need for a set retirement form, and addressed the City's pension debt.
Mayor Gardner noted that Mr. Nichols was considered a City employee when he was a Council
Member, noted that all groups are contributing more towards their pensions compared to
previous years, and stated that this is a negotiation process.
City Manager Kiff reported that the City's employees are paying more than Governor Brown's
Proposal, stated that the City is subject to the new law for employees hired after January 1,
2013, and noted that he would be happy to speak further on the issue with Mr. Nichols.
.._.� "emoer nOsansky to adopt
Resolution. No. 2012 -87 relating to the City's intention to approve an amendment to the
contract between the Board of Administration, California Public Employees' Retirement System
(PERS) and the Newport Beach City Council to authorize the following second tier retirement
formulae: 30A@55 for Police; 2 % @50 for Fire; 2 % @50 for Other Safety (Lifeguards); and 2%@ 60
for Miscellaneous members; b) introduce Ordinance No. 2012 -22 relating to PERS contract
amendment and pass to 2nd reading on October 23, 2012; and c) adopt Resolution No. 2012 -88
implementing a qualified Defined Contribution Plan with the PARS.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
Amended - -> 21. FURTHER DIRECTION SOUGHT - PADDLEBOARDS, NON - EMERGENCY
order of wording FLYOVERS, ENCROACHMENTS.
and votes for Item
21 Mayor Gardner introduced Recommendation 21a regarding regulations or education efforts for
Stand -Up Paddleboarding in the Harbor.
Council Member Daigle addressed public comments received on the issue noting differing
opinions, stated that professionals recommended holding a public forum in order to gauge
public opinion and hear from Harbor users regarding safety issues, and noted the need to get a
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better sense from different Harbor users.
Discussion followed regarding the number of accidents in the Harbor and the possibility of
sending the item to the Harbor Commission with direction to focus on education.
Council Member Rosansky stated that he did not see this as a high priority issue.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tom Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
Motion by., Council Member Selich seconded by Council Iti?ember Rosansk to do
nothing relative to recommendation 21a.
Council Member Selich agreed with Council Member Rosansky's comments.
Mayor Pro Tom Curry agreed and stated that there is no need for specific direction on this
issue.
Doug West, Chair of the Harbor Commission, stated that the Harbor Commission will not
approach this in a regulatory framework, indicated that he believe that a problem does not
exist, and stated that if Council directs the Harbor Commission to address this, they will.
Motion by Council Member Rosansky, seconded bv Council Member Henn to do
nothing relative to recommendation 21b.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tom Curry, Council Member
Selich, Council Member Henn, Council Member Daigle
Noes: Mayor Gardner
Mayor Gardner introduced Recommendation 21b to amend the Municipal Code to request that
the military provide notice of an non - emergency flyover in the community.
Council Member Rosansky stated that this is a solution looking for a problem and believed that
the matter is not an issue to be considered.
Mayor Gardner introduced Recommendation 21c regarding a formal process to analyze various
private encroachments onto public lands or public rights -of -way, such as in Santa Ana Heights,
Newport Shores, and more.
Assistant City Manager Badum presented information on encroachments including the types of
encroachments and related permits needed, as well as the current implementation program and
current issues.
Mayor Gardner stated that clarification of the policy is needed
Debra Ann Stout addressed the encroachment building process relative to Mesa Drive, noted
that there are many encroachments into the public right -of -way in the area, and stated that
Council should not "look the other way ".
Assistant City Manager Badum noted that there are no walls in the public right -of -way on
Mesa Drive but rather landscaping and mailboxes.
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City Attorney Harp added that the agreement shits the liability to the property owner to be
liable for what happens on the property and obligates them to remove whatever improvements
exist.
Motion by Council Member He seconded by Council Member Selich to proceed with
the current process relative to Issue 21c.'
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky,. Mayor Pro Tern Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
522. RESOLUTION NO. 2012 - 89: FORMING THE TASK FORCE ON COMMITTEES.
Members of Council concurred to appoint Council Members Henn, Selich, and Mayor Gardner
to the Task Force on Committees.
Jim Mosher referenced the local appointments list, stated that it needs to be cleaned up, and
expressed concerns regarding the Task Force not being subject to the Brown Act.
Mayor Gardner noted that the group will be proposing changes that will be considered by
Council.
Jim Mosher indicated that the revisions are contingent upon the passage of Measure EE, took
issue with the fact that the word "committee" does not appear in the City Charter, discussed
the Building Ad Hoc Committee believing that it should be subject to the Brown Act, and
addressed Citizen Advisory Panels.
Resolution No. 2012 -89 relating to the Membership and Responsibilities of he Task Force on
Committees; and b) appoint Council Members Henn, Selich, and Mayor Gardner to the Task
Force on Committees.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tom Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
XVIII. MOTION FOR RECONSIDERATION
Council Member Henn announced that Council Member Daigle would like to change her vote on item
15 (Balboa Village Implementation Plan (PA2011 -224) - Balboa Peninsula Between 7th Street and A
Street including Balboa Village.
Amended - -> 16. BALBOA VILLAGE IMPLEMENTATION PLAN (PA2oll -224) - BALBOA PENINSULA
the motion BETWEEN 7TH STREET AND A STREET INCLUDING BALBOA VILLAGE.
adopt Resolution No. 2012 -54 approving the Balboa Village Master Plan onsiste ntcwith the
recommendations of the Neighborhood Revitalization Committee and finding that the action is
exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15262
(Feasibility and Planning Studies) of the CEQA Guidelines, California Code of Regulations,
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Title 14, Chapter 3; b) adopt attached Resolution No. 2012 -85 creating. the Balboa Village
Advisory Committee; c) confirm the Mayor's appointment of Council Member Henn and one
additional Council Member to the Balboa Village Advisory Committee ("BVAC "); d) direct the
City Clerk to post and publish a Request for Applications for the BVAC; and e) remove
the Residential Parking Survey from the plan.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Council Member
Selich, Council Member Henn, Council Member Daigle
Noes: Mayor Gardner
ADJOURNMENT - Adjourned at 12:00 a,m on Wednesday, September 26, 2012, in memory
of Sarah Leaf and Catherine Campion Ritz, M.D.
The agenda for the Regular Meeting was posted on September 20, 2012, at 3:10 p.m, on the
City Hall Bulletin Board located outside of the City of Newport Beach Administration
Building. The supplemental agenda for the Regular Meeting was posted on September 21,
2012, at 2:30 p.m on the City Mall Bulletin Board located outside of the City of Newport
Beach Administration Building.
City Clerk
Recording Secretary
Mayor
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