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HomeMy WebLinkAbout01 - MinutesJune 14, 2016 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting May 24, 2016 I. REGULAR MEETING ROLL CALL - 4:00 p.m. Present: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon II. CURRENT BUSINESS 1. John Wayne Day [100-2016] City Manager Kiff provided a brief staff report. Alk Mayor Pro Tem Muldoon stated he requested City Council Policy A-6 be waived in order to discuss establishing May 26 as "John Wayne Day." F Council Member Curry indicated support for waiving the policy and supporting "John Wayne Day." Motion by Mayor Pro Tem Muldoon, seconded by Council Member Curry, to waive City Council Policy A-6 relating to how a City Council Member may place an item on the regular City Council Meeting Agenda. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Laura Dietz discussed John Wayne's roll in the Battle of Iwo Jima film and expressed gratitude for Council's support. Jim Mosher asked the plan and cost. He suggested amending the resolution to state "John Wayne was the stage name of an actor who portrayed what many regard as a consummate American hero." And inserting "every" May 26 in Section 1. Mayor Pro Tem Muldoon stated the intent was for each May 26 to be "John Wayne Day." Motion by Mayor Pro Tem Muldoon, seconded by Council Member Curry, to a) adopt amended Resolution No. 2016-62, A Resolution of the City Council of the City of Newport Beach, California, Recognizing May 26 as John Wayne Day; and b) determine that the adoption of Resolution No. 2016-62 is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Volume 63 - Page 1 City of Newport Beach Study Session and Regular Meeting May 24, 2016 Mayor Dixon announced that the John Wayne family would be present at the 7:00 p.m. meeting to receive the proclamation, followed by a reception. III. ADJOURNED TO THE JOINT MEETING WITH THE FINANCE COMMITTEE - 4:10 p.m. (see separate minutes) A. FY 2016-17 Budget Overview, Including Checklist, CIP, and Allocation of Fund Balance from Close of FY 2015-16 IV. CALL STUDY SESSION TO ORDER - 5:18 p.m. V. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar - None SS2. Presentation Recognizing "Poppy Month" Mayor Dixon read and presented the proclamation declaring May as "Poppy Month." Miss Poppy Taylor Howard recited the poem "In Flanders Field" and Junior Miss Poppy Kylie Howard distributed poppy boutonnieres to the Council Members on behalf of the American Legion Auxiliary. Carolyn Whitlinger and Debbie Schubert, Co -Chair for Poppy Fundraisers American Legion Auxiliary Post 291, thanked Council for the proclamation. SS3. Presentation by the Waste Not OC Coalition N., Dr. Eric Handler, Public Health Officer for Orange County, presented a PowerPoint on the Waste Not OC campaign to end hunger in Orange County. Jeff Snow, Rainbow Environmental Services, explained AB1826, requiring decreases in landfill contributions. He requested a letter of support from Council for businesses to donate surplus food to end hunger. In response to Mayor Dixon's question, Mr. Snow stated AB1826 took effect April 1, 2016 and every restaurant in Newport Beach was required to comply by January 1, 2017. Mayor Pro Tem Muldoon asked what was required from the City. Mr. Snow explained they were asking for a letter of support. He stated AB1826 could be supported by City ordinance. City Manager Kiff stated AB1826 would be presented at a Study Session in June. Council agreed to send a letter of support. SS4. Pacific Coast Highway Corridor Study: Presentation by the Orange County Transportation Authority (OCTA) Joe Alcock, OCTA Section Manager for Corridor Cities, presented a PowerPoint explaining the PCH Corridor Study, including its purpose and need, alternatives, development, sample improvement options, and Newport Beach improvement recommendations. Council Member Selich discussed issues with bicyclists and vehicles making free right turns. Mr. Alcock stated the study identified green conflict zone striping. Council Member Petros complimented Mr. Alcock, and the Public Works Department on the collaborative effort. He expressed interest in how the recommendations could be implemented. Volume 63 - Page 2 City of Newport Beach Study Session and Regular Meeting May 24, 2016 Mr. Alcock stated the report presented possible competitive funding opportunities. Public Works Director Webb stated several projects had already been implemented. Council Member Petros requested continued dialogue for new, safer corridors. Mayor Dixon discussed issues at Newport Boulevard and PCH. Public Works Director Webb stated the study provided better opportunity for funding. Mayor Dixon asked what other cities were doing. Mr. Alcock stated other cities were asking similar questions. Council Member Petros stated the 20 -year Master Bicycle Plan and the study could provide very competitive funding opportunities. In response to Council Member Peotter's question, Mr. Alcock stated the report included 37 recommendations for Newport Beach. Jim Mosher asked where the documents could be found and requested clarification on free right turn lanes. Mr. Alcock stated the documents were available at www.octa.net, under PCH Corridor Study. Public Works Director Webb stated pedestrians have the right of way in the legal crosswalk. SS5. Traffic and Land Use Issues along Mariners' Mile Council Member Duffield recused himself because he has a business on Mariners' Mile. Public Works Director Webb presented a PowerPoint regarding the West Coast Highway (WCH) Mariners' Mile Capacity Study, provided background on the Highway and Mariner's Mile segment, and discussed the 2006 Newport Beach General Plan Circulation Policies and Goals, the City's role in planning and maintaining WCH, the County Master Plan of arterial highways, current Citywide traffic volume counts, 6 lane arterials, Mariners' Mile level of service, highway configuration and lane use review, the PCH Countywide Corridor Study Mariners' Mile Segment, consultant drill down capacity, full MPAH configuration per City standard, five/six lane "hybrid" configuration, minimum MPAH configuration, minimum MPAH with Alternative, conclusion of HDR capacity review, street parking, funding highway capacity improvements, Mariners' Mile Revitalization Master Plan, and recommendations for Mariners' Mile. Public Works Director Webb requested Council direction on the 112 -foot right-of-way versus 128 -foot right-of-way, whether to pursue removal of parking and installation of bike lanes, and undertake the planning study. In response to Mayor Dixon's question, Public Works Director Webb stated he anticipated moving towards a multimodal nature. Traffic Engineer Brine stated Uber and driverless cars needed to be considered. Manoosh Shakib stated Uber and driverless cars were coming in the future. He believed a super -highway would not benefit the people of Newport Beach and would eliminate viable businesses due to speeds. In response to Mayor Dixon's question, Public Works Director Webb stated the issue was capacity and increased speed was not anticipated. City Manager Kiff stated if the area would still be at Level of Service E with six lanes. Carmen Rawson requested that Council consider the children on bicycles and the need for a crosswalk. She stated traffic from developments should be considered. Volume 63 - Page 3 City of Newport Beach Study Session and Regular Meeting May 24, 2016 Mayor Dixon stated traffic from development was included in the General Plan. Public Works Director Webb confirmed that the level of traffic would increase with development. He addressed Ms. Rawson's concerns about school children and discussed proposed bicycle trails and pedestrian overpasses. Mayor Dixon suggested moving the bike path off Coast Highway. Council Member Peotter indicated support for a 112 -foot right-of-way, utilizing six lanes, and moving parking. Council Member Selich asked the level of service through Corona del Mar. Traffic Engineer Brine stated the four lane facility was Level of Service F based on volume to capacity. Council Member Selich asked if consideration had been given to using the center lane during peak hours. Traffic Engineer Brine stated the center lane was utilized for turn movements. Public Works Director Webb discussed the left turn pocket for the signals. Council Member Petros stated that businesses appreciate some level of certainty in their decision making; however, believed there was a complete lack of certainty on Mariners' Mile and the six lanes would operate at Level of Service E or F. He stated Corona del Mar was not an example of good economic development and that it was important to consider the land use component. Public Works Director Webb stated the project was locked into six lanes. In response to Council Member Selich's questions, Public Works Director Webb explained that the curbs would be moved to the inside of the road, not on the water side, the sidewalk would be reduced from twelve to six or eight feet, and the right-of-way would need to be obtained. Mayor Dixon suggested the possibility of a frontage lane to service the commercial areas. Public Works Director Webb stated there was not enough space for a slip lane. City Manager Kiff asked if there was opposition or concern with the six lane approach and removal of on -street parking for planning purposes. Mayor Dixon suggested the master planning study include all stakeholders. Council Member Curry stated it was important to obtain feedback and consultation from business owners. Mayor Dixon thanked staff for the holistic discussion of traffic flow on PCH. Council Member Selich stated the 112 -foot right-of-way would be the baseline. Public Works Director Webb stated 112 -feet was the minimum required. Council Member Selich emphasized parking was an issue for the businesses. VI. PUBLIC COMMENTS Jim Mosher discussed the Waste Not OC Coalition request and pointed out that the request was not on the agenda as an action item. Nicole Zarate, Community Service Programs, an alcohol and drug related impaired driving project, stated the program provided bars and restaurants with responsible beverage serving training. She announced Nordstrom Cafe Bistro and Billy's at the Beach were being recognized for committing to the program. Chris Benzen stated business parking was overflowing into the Finley Street neighborhood. City Manager Kiff stated he would meet with the neighborhood. Mayor Dixon suggested adding the matter to the June 6, 2016 Town Hall meeting agenda. Volume 63 - Page 4 City of Newport Beach Study Session and Regular Meeting May 24, 2016 Brenda Calvillo discussed complaints about pet stores in Newport Beach selling puppies from puppy mills. She stated most cities had adopted ordinances banning the sale of small animals and requested that Council look into the issue. VII. RECESS - 6:50 p.m. VIII. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING IX. ROLL CALL Present: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon X. PLEDGE OF ALLEGIANCE - Girl Scout Troop 2917 XI. INVOCATION - Council Member Petros XII. PRESENTATIONS '40 et Recognition of "John Wayne Day," Including Presentation/Comments by Board of Supervisor Michelle Steel Mayor Dixon read the proclamation and presented it to John Wayne's family. Vice Chair of Orange County Board of Supervisors Steel presented the family with a recognition from the County of Orange. as Council Member Petros discussed his father's experience with John Wayne. Council Member Curry stated he had the honor of meeting John Wayne in 1976. Ethan Wayne, on behalf of John Wayne's family Melinda Munoz, Patrick Wayne, Marisa Wayne and husband Tony and children Duke and Carmela, Anita and Tim Swift and Mike Munoz, thanked the Council and Board of Supervisors for recognizing May 26 as "John Wayne Day" in Newport Beach and Orange County. He stated his father would be honored and pleased for the recognition. He discussed the John Wayne Cancer Foundation. Mayor Pro Tem Muldoon stated the honor was all his and his colleagues for the great work of John Wayne. He thanked the family for continuing the John Wayne Cancer Foundation. Council Member Duffield discussed his experience meeting John Wayne. Mayor Dixon stated it was a pleasure to honor John Wayne. Mayor Dixon recessed the meeting at 7.19 p.m. and reconvened at 7.25 p.m. with Mayor Pro Tem Muldoon, Council Member Duffield, and Council Member Peotter not in attendance. Council Member Duffield and Peotter arrived at the meeting at 7.28 p.m. XIII. NOTICE TO THE PUBLIC XIV. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEMS) Volume 63 - Page 5 City of Newport Beach Study Session and Regular Meeting May 24, 2016 Council Member Petros discussed the recent Airport Working Group of Orange County meeting, at which Tony Khoury completed his seven-year term as president and Mel Beale was elected president. Council Member Curry commended staff on the Relay for Life event. He stated he participated in the Balboa Island Art Walk and Field of Honor ceremony. Council Member Selich stated he attended the Balboa Island Art Walk. He announced the Balboa Island Parade on June 5 and Wooden Boat Festival on June 4. He reported that the Park Avenue Bridge project was underway. Mayor Dixon announced the birth of her grandson on May 11. She reminded residents to check their mail for the Newport Navigator. She announced the Orange County Natural History Lecture on June 1 from 7:00 to 9:00 p.m. She stated the OASIS Senior Center Chili Cook -Off would be held on June 18. She requested, due to the recent Seal Beach Pier fire, a report come back on the Fire Department's capability in handling a fire from the ocean. XV. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Limitation on Debt Issuance as a Percentage of City General Revenue Fund, Non -Callable Debt: Charter Amendment (Peotter) Council Member Peotter suggested referring an item to the Finance Committee for recommendation to Council on a proposed charter amendment for the November 2016 ballot to restrict unbonded indebtedness and limiting debt to a maximum of 50% of the fund, issuance of debt exceeding 25% of the fund would require a vote of the people, non -callable notes would not be allowed, and refinancing existing debt and governors state of emergency would be exempt. Council Member Curry discussed the City's existing debt policy and believed the matter not be agendized because it did not make sense. Council Member Peotter stated 50% of the general fund would be the total amount of debt. Mayor Pro Tem Muldoon arrived at 7:38 p.m. Jim Mosher questioned the timing for a charter amendment. City Manager Kiff stated three Council Members would have to agree to bring the matter back as an agenda item for full discussion by Council. City Attorney Harp added that three Council Members could approve bringing the matter back to determine if it should be forwarded to the Finance Committee. Council Member Curry stated the public needs a full discussion of the proposed policies. Mayor Dixon stated she anticipated full discussion at the Finance Committee and then back to the City Council. Council Member Peotter, Council Member Duffield, Mayor Pro Tem Muldoon, and Mayor Dixon agreed that an item should be brought before Council to determine whether to refer Limitation on Debt Issuance as a Percentage of City General Revenue Fund, Non -Callable Debt: Charter Amendment to the Finance Committee. • Dog Beach (Curry) Council Member Curry suggested the City Council weigh in on the proposed dog beach. Volume 63 - Page 6 City of Newport Beach Study Session and Regular Meeting May 24, 2016 Mayor Dixon asked what kind of decisions the Council would make. City Manager Kiff stated new fencing or bike racks would have to come to Council for approval as a budget item and potentially a coastal development item. Council Member Peotter stated he did not see the need to bring the matter back. Mayor Pro Tem Muldoon stated he attended the PB&R hearing and indicated he did not want to discuss the matter. Council Member Curry believed Council needs to react to the County's action. Mayor Pro Tem Muldoon asked if the City Manager could take action administratively. City Manager Kiff stated he could install doggie bags, but the fence and bike racks might need Council approval. Mayor Dixon stated staff was already considering administrative actions such as trash cans and improvements at the end of Seashore Drive, and items requiring a budget amendment would be brought back to the Council. She stated the people wanted a dog beach and the residents wanted protection. City Manager Kiff stated staff could develop a plan while the County continued its action. Jim Mosher agreed that discussion was necessary because the City and County need a coherent plan and would need a coastal development permit. Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, and Mayor Dixon agreed that discussion about the dog beach should be brought back for Council discussion after the County determines what it is going to do. XVI. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher requested clarification on Item 12 (Budget Public Hearing) as to whether the budget had to be adopted at the June 14 City Council meeting. Regarding Item 8 (Agreement to Develop a Revitalization Master Plan for Mariners' Mile), he believed the consultant had previously brought Measure Y before the City and hoped they paid attention to the public's sentiment. Council Member Petros clarified that the consultant prepared a General Plan and the City brought forward Measure Y. XVII. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 2. Minutes for the May 10, 2016 Study Session and Regular Meeting [100-2016] Waive reading of subject minutes, approve as amended, and order filed. 3. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. RESOLUTIONS FOR ADOPTION 4. Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2016-2017 [100-2016] Volume 63 - Page 7 City of Newport Beach Study Session and Regular Meeting May 24, 2016 a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) Approve the Corona del Mar Business Improvement District Fiscal Year 2015-2016 Annual Report; and c) Adopt Resolution No. 2016-63, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2016 to June 30, 2017, and Fix the Time and Place of a Public Hearing for June 14, 2016. 5. Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in Fiscal Year 2016-2017 [100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) Approve the Newport Beach Restaurant Association Business Improvement District Fiscal Year 2015-2016 Annual Report; and c) Adopt Resolution No. 2016-64, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2016 to June 30, 2017, and Fix the Time and Place of a Public Hearing for June 14, 2016. CONTRACTS AND AGREEMENTSTftbhhv-� Approval and Award of Copier Maintenance Contract (C-8043-1) [38/100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Authorize the Mayor and City Clerk to sign a five-year contract with Sema, Inc. for copier maintenance services in the amount of $314,116.26. AEL Professional Services Agreement to Develop a Revitalization Master Plan for Mariners' Mile (C-8044-1) [38/100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) Award Professional Services Agreement to P1aceWorks in the amount of $206,922, and authorize the Mayor and the City Clerk to execute the contract; and c) Approve Budget Amendment No. 16BA-041 transferring $64,610 from Services Professional & Technical NOC (Account No. 0105042-811008) to the Mariners' Mile Highway Configuration/Land Use Review (Account No. 01001928-980000-15T06); and transferring $51,770 from City Manager Professional Services (Account No. 01020005-811008) to the Mariners' Mile Highway Configuration/Land Use Review (Account No. 01001928-980000- 15T06). Council Member Duffield recused himself on Item 8 because he has a business on Mariners' Mile. 9. Agreement for the Purchase of a CNG 3 -Axle Dump Truck (C-8045-1) [38/100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and Volume 63 - Page 8 City of Newport Beach Study Session and Regular Meeting May 24, 2016 b) Approve an agreement for the purchase of one CNG -powered, 3 -axle dump truck from Los Angeles Truck Centers, LLC dba Los Angeles Freightliner for a total cost of $228,917.02, and authorize the Mayor and City Clerk to execute the agreement. MISCELLANEOUS 11. 2015 Urban Water Management Plan [100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) Receive the draft Urban Water Management Plan for review; and c) Set the date of June 14, 2016 for a public hearing. 12. Set Public Hearing Date to Adopt Fiscal Year 2016-2017 Budget [100-2016] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Schedule a public hearing of the City's Proposed Budget for Fiscal Year 2016-2017 on June 14, 2016, and direct the City Clerk to publish a notice of said hearing in accordance with Section 1102 of the Newport Beach Charter. Motion by Mayor Pro Tem Muldoon, seconded by Council Member Peotter, to approve the Consent Calendar, except for the items removed (Items 6 and 10); and noting the recusal by Council Member Duffield to Item 8. 1W ft The motion carried by the following roll call voter Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon XVIII. ITEM REMOVED FROM THE CONSENT CALENDAR - None 6. Establish a Trial Anchorage Area West of Lido Isle — Harbor Commission Recommendation [100-2016] As the representative of the people of District 1, Mayor Dixon stated she would be voting "no" due to the impact on quality of life. Duncan McIntosh, Harbor Commissioner, discussed the rules and increased education, and requested support for the project. Paul Blank, Vice Chair of the Harbor Commission, stated several outreach meetings took place and the recommendation was based on feedback. He requested support for the trial period and recommendation. Motion by Council Member Curry, seconded by Council Member Petros, to a) find the approval of this resolution exempt from the California Environmental Quality Act ("CEQA") pursuant to: (1) Section 15303 because it involves the construction and location of limited numbers of new small facilities, which are four buoys with weights and associated hardware; (2) Section 15304 minor alteration of water in Newport Harbor through the placement of a temporary anchorage area; (3) Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); and (4) Section 15061(b)(3) because it has no potential for causing a significant effect on the environment, of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change Volume 63 - Page 9 City of Newport Beach Study Session and Regular Meeting May 24, 2016 to the environment, directly or indirectly; and b) adopt Resolution No. 2016-65, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Establishment of a Temporary Trial Anchorage in the Newport Harbor Turning Basin. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon Nays: Mayor Dixon 10. Update on Water Use and Conservation Efforts April 2016 [100-20161 Municipal Operations Director Murdoch presented the staff report. In response to Mayor Dixon's question, Municipal Operations Director Murdoch reminded residents that the drought was not over and efforts to conserve should continue. Motion by Council Member Petros, seconded by Council Member Curry, to a) determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) receive and file. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon XIX. PUBLIC COMMENTS ON NON -AGENDA ITEMS Tara Reilly Tung discussed parking permits for Aralia Street and overflow of Corona del Mar High School parking. She requested the parking permits be extended on Arbutus, Alta Vista and Aleppo. She expressed concern regarding the proposed stadium project. Maura Quist, Newport Citizens for Responsible Growth (NCRG), indicated support for renovating the field and track stadium at Corona del Mar High School. She suggested implementing a two field alternative plan. Ryan O'Grady, NCRG, addressed the Council regarding the Newport -Mesa sport field project and indicated support for the two field alternative. He expressed concern regarding noise and the impact to property values. Brenda Calvillo requested that Council consider placing a ban on the sale of dogs, cats and rabbits in pet stores. Chuck Groux stated he voted for Council Member Duffield because he was a business owner and longtime resident. He stated he was confident Council Member Duffield would lead the fight against the Museum Tower project. XX. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Petros announced the upcoming Finance Committee meeting on May 26, 2016, at 4:00 pm, in the Newport Coast Conference Room. Volume 63 - Page 10 City of Newport Beach Study Session and Regular Meeting May 24, 2016 XXI. CURRENT BUSINESS 13. Cameo Shores Pavement Reconstruction - Award of Contract No. 5891 (151102) [381100- 2016] Deputy Public Works Director Vukojevic presented a PowerPoint presentation and provided an overview of the Cameo Shores Pavement Reconstruction project. Council Member Selich expressed concern regarding previous slurry seal jobs. Deputy Public Works Director Vukojevic discussed soil conditions and installation of pavement. Motion by Council Member Peotter, seconded by Council Member Curry, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; b) approve the project plans and specifications; c) award Contract No. 5891 to All American Asphalt for the total bid price of $3,363,363.00, and authorize the Mayor and City Clerk to execute the contract; d) establish a contingency of $336,000.00 (approximately 10 percent) to cover the cost of unforeseen work not included in the original contract; and e) approve Budget Amendment No. 16BA-042 transferring $233,000.00 from project savings from 12201-980000-13R20 (Campus Dr, San Joaquin Hills Rd Overlay project) to Account No. 12201-980000-151102 (Cameo Shores Pavement Reconstruction project); and transferring project savings as follows: $42,000 from 12101-980000-151112 (Bay Ave Area Pavement Rehabilitation project); $49,000 from 12101-980000-151103 (Sidewalk, Curb and Gutter program); and $269,000 from 12101-9800000-15RII (15th St, Balboa Blvd Reconstruction project) to Account No. 12101- 980000-151102 (Cameo Shores Pavement Reconstruction project). The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon 14. Petition Certification for Proposed Underground Assessment District Nos. 114 (Area Bounded by: Tustin Avenue / 15th Street / Irvine Avenue and Cliff Drive) and 114b (Area Bounded by: Riverside Avenue / 15th Street / Tustin Avenue and Cliff Drive) and Approval of Professional Services Agreement with Harris and Associates, Inc. (C-8028-1) (continued from May 10, 2016) [38/100-2016] Mayor Pro Tem Muldoon recused himself due to a business interest. Council Member Curry recused himself due to a stockholder interest in AT&T. Mayor Dixon clarified that the same matter was previously discussed on May 10, 2016, therefore she proposed limiting public comment to two minutes. Council concurred. Public Works Director Webb provided the staff report and stated the applicant had requested the matter be presented to Council, although they had not obtained the required 60% of signatures. Dennis Anderson, Harris and Associates, explained signature rescission requests, invalidated signatures, signature rescission retractions, and current petition signatures. He stated the petition percentage was at 50.85%. Public Works Director Webb requested Council direction on the matter. He stated the State legal threshold was 50%. Volume 63 - Page 11 City of Newport Beach Study Session and Regular Meeting May 24, 2016 In response to Council Member Peotter's question, Public Works Director Webb recommended combining the districts due to economics of scale. City Attorney Harp suggested the district petitions should be considered separately. Council Member Peotter asked if Assessment District 114b was large enough to proceed on its own. City Attorney Harp stated the petitions were circulated separately and he recommended voting separately on whether to proceed with the district. Council Member Selich stated Council could determine not to vote on Assessment District 114b if Assessment District 114 did not pass. Burr Buman questioned whether the City had generated a flyer and postcard, and expressed concern that he was a signatory to undergrounding when he was only asking for information. Ernest Adams presented a PowerPoint presentation displaying photographs of the alleys with and without the power poles. He believed the alleys were not amenable to beautification. He displayed poles on 15th Street in Newport Heights and expressed frustration that his time was limited to two minutes. Tom Newman requested Council retain the 60% required signatures. Sara D'elia discussed support for Assessment District 114b, expressed concern regarding unsightly telephone poles, and requested Council approve the district. A male speaker attempted to defer his time to Ernest Adams. City Attorney Harp reported speakers could not cede their time to others. The speaker read Ernest Adams' remaining comments opposing the undergrounding. Barbara Kraus indicated support for undergrounding and suggested that undergrounding occur prior to repaving the alleys. Rick Weiss expressed opposition to undergrounding. He presented information from utility companies indicating underground utilities were more expensive, had higher rates, and were harder to repair. Summer Anderson discussed the impact of poles on her property and stated it was unsightly and unsafe. She stated she would shoulder additional costs to get the project completed. Diane Byers indicated opposition to undergrounding due to 60% support not being reached. John Horn stated he was against undergrounding due to cost. Nova Wheeler, speaking on behalf of Lynn Lorenz, discussed the qualifications of the Council Members and expected them to be fair and retain the 60% requirement. Steve Byers reminded Council of its fiduciary responsibility to maintain 60% support and opposed combining the two districts. Niall Barrett expressed support of moving forward with the district formation. He stated elimination of the power poles would increase property values and improve technology, safety and emergency access. He urged Council to move towards a vote. Jacquelynn Ellis Warren stated homeowners would be financially burdened for an unnecessary project. She suggested that the City pay for the undergrounding and add lights to the poles, and requested that Council maintain the 60% threshold. Volume 63 - Page 12 City of Newport Beach Study Session and Regular Meeting May 24, 2016 Leslie Bubb stated there were many residents in favor of undergrounding that were not present and had not signed the petition but were waiting for a vote. She requested the vote proceed. Lauren Friedman noted 12 of the 14 recent buyers signed the petition. She stated the costs will continue to increase and suggested the undergrounding proceed while redoing the alleys. Mike Hefner encouraged going to vote on both Assessment Districts 114 and 114b. He suggested the project proceed along with the alley project. He believed costs would continue to increase and undergrounding was inevitable. Nini Rezai stated she did not have extra income for the project. She suggested those wanting undergrounding should pay for it. Lynda Adams expressed opposition to undergrounding, stating it was an undue burden. She requested that Council maintain the 60% threshold. Susan Kopicki urged Council to uphold the 60% threshold. Stephen Miles, Miles Law Group, believed there were procedural due process issues and suggested redoing the process if Council was considering undergrounding. In response to Council Member Selich's question, City Attorney Harp addressed Mr. Miles' letter regarding due process and CEQA concerns. Chad Liberto requested that Newport Heights be undergrounded. Gina Cereda requested the opportunity to vote on the undergrounding. Scott Barnard discussed the social component of the alleyway. He suggested undergrounding be done when the alley was upgraded. Gail Demmer expressed opposition to undergrounding the telephone poles. She discussed the impact of the process on the neighborhood and encouraged Council to retain the 60% threshold. Tom Baker expressed opposition to reducing the 60% threshold. Jim Mosher stated he does not live in the districts. He noted that Council can still decide to form the district even if 50% voted in favor. Parviz Goshtasby stated he recently moved to Newport Heights and expressed support for undergrounding; however, asked if the City could assist in funding the project. Valerie Carson believed undergrounding was less safe for children. James McCulloch expressed opposition to undergrounding. In response to Mayor Dixon's question, Deputy Public Works Director Vukojevic explained the rescission and signature validation process. City Manager Kiff asked if all of the signatures had been verified. Deputy Public Works Director Vukojevic stated there were signatures that could not be verified and, therefore, were not counted. He confirmed that the signature page of the petition was counted, not any postcard signatures. Volume 63 - Page 13 City of Newport Beach Study Session and Regular Meeting May 24, 2016 In response to Mayor Dixon's question, City Attorney Harp explained that the 50% threshold was State law and the Council's guideline could be waived. Motion by Council Member Selich, seconded by Council Member Peotter, to a) waive the current petition percentage guidelines and undertake a ballot vote as requested by the proponents of Assessment District Nos. 114 and 114b; b) adopt Resolution No. 2016-56, A Resolution of the City Council of the City of Newport Beach, California, Accepting Petition of Assessment District No. 114; c) adopt Resolution No. 2016-57, A Resolution of the City Council of the City of Newport Beach, California, Accepting Petition of Assessment District No. 114b; d) approve Budget Amendment 16BA-040 appropriating the amount of $65,000, apportioned to Assessment District No. 114 in Account No. 66402-941006 and $50,000, apportioned to Assessment District No. 114b in Account No. 66502-941006 for assessment engineering services. Should these Assessment District(s) fail to form, these expenditures will be covered by the General Fund; e) approve a Professional Services Agreement (PSA) for engineering services for Assessment Districts Nos. 114 and 114b with Harris and Associates, Inc., at a not -to -exceed price of $115,000, and authorize the Mayor and City Clerk to execute the Agreement on a form approved by the City Attorney; and f) have the residents vote on the Assessment Districts separately and combine the Engineer's Report. Mayor Dixon expressed frustration with the dissention in Newport Heights and believed that voting on the issue would resolve the matter. Council Member Petros took issue with Council continuously waiving its rules. City Attorney Harp confirmed that each district will be voted on separately by the property owners, but combined for calculating costs. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Mayor Dixon Nays: Council Member Petros Recused: Council Member Curry, Mayor Pro Tem Muldoon XXII. MOTION FOR RECONSIDERATION - None XXIII. ADJOURNMENT - Adjourned at 9:44 p.m. in memory of James (Jimmy) Emmi The agenda was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on May 19, 2016, at 4:00 p.m. City Clerk Mayor Volume 63 - Page 14 CITY OF NEWPORT BEACH City Council Minutes Joint Meeting with the Finance Committee May 24, 2016 I. ROLL CALL - 4:10 p.m. Present: Finance Committee Member O'Neill, Finance Committee Member Tucker, Finance Committee Member Warner, Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Absent: Finance Committee Member Gorczyca II. CURRENT BUSINESS A. FY 2016-17 Budget Overview, Including Checklist, CIP, and Allocation of Fund Balance from Close of FY 2015-16 City Manager Kiff presented a PowerPoint outlining the 2016-17 Budget Overview. In response to Mayor Dixon's questions, City Manager Kiff explained the pension costs and unfunded liability. He also reported that $40 million of the $280 million operating budget was allocated toward pensions. Council Member Peotter asked about the fresh start for unfunded pension liabilities. City Manager Kiff clarified that it was a modified second fresh start and mortality estimate. City Manager Kiff stated that employees paid $1 million each year toward pensions. He discussed increased investments related to increased expenditures, goals met with the proposed budget, presented reforms, reductions and savings for future needs, and his interpretation of discretionary items in the budget. Council Member Petros questioned the items City Manager Kiff determined as discretionary. City Manager Kiff explained City operation funding and requested input on the Wastewater Fund. He discussed the work of the Finance Committee and future pension unfunded liability. Mayor Dixon asked about increased revenues. City Manager Kiff stated the 6 -year trend was 4.5%. Finance Director Matusiewicz stated the accrued liability was 7.3% each year. In response to Council Member Peotter's questions, City Manager Kiff discussed the 3% at 50 retirement option that had not been funded. Finance Director Matusiewicz discussed PERS limited earning which might increase the unfunded liability. City Manager Kiff indicated the City should aggressively review and discuss the issue. Mayor Pro Tem Muldoon asked why the performance was so poor. Finance Director Matusiewicz stated PERS invested for the long term and City Manager Kiff discussed PERS investment policy. Council Member Petros discussed the concerning trend. He suggested focusing on the budget for the upcoming year but taking action to empower the City to approach other agencies, the State, and legislative delegation to address the issues that the PERS Board was not addressing. Volume 63 - Page 15 City of Newport Beach Joint Meeting with the Finance Committee May 24, 2016 Mayor Dixon discussed the need to deal with the long term pension issues. City Manager Mff stated there were 989 retired employees or beneficiaries, 216 greater than the current staff. Council Member Petros stated he was honored and humbled to lead the Finance Committee and expressed gratitude for its work. Finance Committee Member O'Neill thanked staff for its input on the budget and stated further discussion of the budget would occur in its upcoming meeting. Council Member Petros announced the upcoming Finance Committee meeting on May 26, 2016, at 4:00 p.m., in the Newport Coast Conference Room, and encouraged the public to attend. Finance Committee Member Tucker discussed efforts to understand the unfunded liability and deal with a long term solution. Jim Mosher discussed the proposed airport consulting services and elimination from the budget. He questioned where the funds were allocated. He suggested allocating funds to audit noise level reporting. City Manager Kiff summarized the budget checklist and proposed use of surplus funds. Council Member Petros stated the budget reflected the analysis of staff on how to continue the operation and achieve the goals and objectives of the City. He reminded the public that the budget reflected the desires of the City, and stated that the budget was solid and he would support it. In response to Council Member Selich's question, City Manager Kiff discussed the Council grant funds and suggested utilizing a competitive process. In response to Mayor Dixon's question, City Manager Kiff stated he would review the possible expansion of the grant pool. Mayor Dixon requested deferring funding for the Balboa Village Chalk Art Festival. Council Member Peotter encouraged more outsourcing, especially in the Building Department, to reduce PERSable expenses. He requested more ingenuity to reduce PERSable expenses, restructure departmental contingencies so they are identified, and utilizing incentives for more efficient, effective services. He requested the Finance Committee review and come up with future fresh start programs to be reviewed and approved by Council. He proposed the business license tax be a flat fee of $50. Council Member Curry asked the impact of reducing the business license tax. Finance Director Matusiewicz stated it would be a $4 million hit to the General Fund. Council Member Curry discussed subsidizing the sewer system. He stated it was necessary to pay down the unfunded liability. He stated the City could not make irresponsible choices based on politics that were not financially sound. Council Member Duffield suggested the Council direct the Harbor Commission to study the possibility of creating a phone app for administrating the mooring fields in the Harbor. He requested Department Heads come up with options for reducing expenses, while retaining the existing services, and offering incentives to those that reduce costs. He suggested the schedule for replacing docks be extended and selling the hotel property. Volume 63 - Page 16 City of Newport Beach Joint Meeting with the Finance Committee May 24, 2016 Council Member Peotter discussed the business license tax and believed his proposal was a net $3 million cut. Finance Director Matusiewicz and City Manager Mff stated they would evaluate the cost. Council Member Peotter emphasized the sewer fee should have previously been raised. He stated he would support the sewer fee increase, while reducing the business license tax. He believed the prior Council was irresponsible for not allocating funds for the sewer. Mayor Pro Tem Muldoon agreed with selling the hotel property. He suggested retaining services but putting projects on hold. He discussed the need to fund the unfunded liabilities. City Manager Kiff stated he would return with the checklist and decision matrix. In response to Mayor Dixon's question, City Manager Mff stated he was looking to have the budget approved on June 14, 2016. He requested Council provide him with requested items for the checklist. Council Member Selich suggested the $3.5 million be brought back with the budget. Mayor Dixon agreed. Council Member Peotter indicated support for Council Member Duffield's idea to reduce each department's budget by 1% to 3%. Council Member Selich requested an alternative to equalize the non -sewer property owners. Mayor Pro Tem Muldoon stated he did not want $3.5 million used for another pet project. He suggested it be used toward the sewer fund. Mayor Dixon discussed the cost to repair a sewer line break. III. PUBLIC COMMENTS _­­%_ -%_ " Rawson asked why the contingency was 25% and indicated that she was willing to continue to pay the full amount for her business license. City Manager Kiff stated the contingencies varied by the Public Works projects. IV. ADJOURNMENT - 5:18 p.m. The agenda was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on May 19, 2016, at 4:00 p.m. City Clerk Mayor Volume 63 - Page 17