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HomeMy WebLinkAbout09/23/1996 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting September 23, 1996 - 7:00 p.m. INDEX •CLOSED SESSION, 5:00 p.m. CLOSED SESSION REPORT PRESENTED - None RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: O Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Absent: None Pledge of Allegiance - Council Member Watt. Invocation by Bishop Ted Truesdell, Church of Jesus Christ Latter Day Saints. Certificates of Appreciation were presented for Outgoing Board and Commission Members: Arts Commissioners Elana Donovan, Howard Herzog, Alexandria Phillips and Kym Young; Board of Library Trustee Lucille Kuehn; Parks, Beaches & Recreation Commissioner Jo Vandervort (present); and Planning Commissioner Gary Pomeroy. A Certificate of Achievement was presented to the City of Newport Beach for Excellence In Financial Reporting for its Comprehensive Annual Financial Report for Fiscal Year ended June 30, 1995, and an Award of •Financial Reporting Achievement was presented to Dennis Danner, Administrative Services Director. Motion by Council Member Debay to waive reading of the minutes of the Study Session and Regular Meeting of September 9, 1996, approve as written and order filed. The motion carried by the following roll call vote: Ayes: O Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None Motion by Mayor Pro Tem Debay to waive reading of the Ordinances and Resolutions under consideration, and direct the City Clerk to read by titles only. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON - DISCUSSION ITEM): • Council Member Watt requested a report at the next meeting on police activities during the last year in the Cannery Village area, as well as a proposal on using a task force approach to solve the accelerating problems in the area. Volume 50 - Page 300 City of Newport Beach City Council Minutes September 23, 1996 Mayor Hedges formally requested that the Police Department enhance their enforcement presence during the problem periods in the Cannery Village area and contact the surrounding bar and tavern owners with a view • towards asking them to police their clientele to the extent they are able to do SO. • Council Member Edwards said he will turn some information over to Mr. Edmonston regarding complaints he received about an intersection at Eastbluff Drive and Vista del Oro. Mayor Hedges reported that he received one phone call on this issue as well, however explained that due to the Brown Act regulations, the Council could not take action on this item tonight. CONSENT CALENDAR 1. INTRODUCE ORDINANCE NO. 96 -38 AMENDING SECTION 12.48.050(A) OF THE NBMC PERTAINING TO THE MEANING OF GREEN CURB MARKINGS OUTSIDE PARKING METER ZONES. Introduce ordinance and pass to second reading on October 28, 1996. 2. Removed from Consent Calendar. ORDINANCES FOR ADOPTION 3. ADOPT ORDINANCE NO. 96 -37 ADDING CHAPTER 10.62 TO THE • _ ^ ^^ NBMC PERTAINING TO VEHICLE ADDRESSED SOLICITATION (Prohibits Vehicle Solicitation from the Public Right of Way). 4. Adopt Resolution No. 96 -79 ESTABLISHING NO PARKING RESTRICTIONS FOR STREET SWEEPING from 8:30 a.m. to 12:30 p.m. every Tuesday on the north side of Ocean Boulevard between Carnation Avenue and Dahlia Avenue. 5. Removed from Consent Calendar. 6. Removed from Consent Calendar. 7. NOTICE OF COMPLETION FOR GROUND WATER DEVELOPMENT PROJECT - DOLPHIN AVENUE AND TAMURA SCHOOL WELL SITES, PHASE I CONSTRUCTION (CONTRACT NO. 3004 -R). Accept the work and authorize the City Clerk to file a Notice of Completion and release the bonds 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code. 8. Removed from Consent Calendar. •MISCELLANEOUS ACTIONS 9. PLANNING COMMISSION AGENDA - September 19, 1996 (Item 2 removed from Consent Calendar). Volume 50 - Page 301 INDEX Ord 96 -38 Veh & Trfc (85) Ord 96 -37 PD/Veh Addrssd Solictn (70) Res 96 -79 Park Restrct/ Strt Swpng (85) Ground Water Development Dolphin/Tamura C- 3004 -R (38) (68) City of Newport Beach City Council Minutes September 23, 1996 10. • 11. 12. 13. C7 • 110 1) TRAFFIC CHANGES DUE TO THE OPENING OF SAN JOAQUIN I Traffic /SJHTC HILLS TRANSPORTATION CORRIDOR (Requested by Council (85) Member O Neil). Receive and file. Removed from Consent Calendar. DONATION OF SURPLUS PROPERTIES TO THE NEWPORT BEACH HISTORICAL SOCIETY. Approve donation. TRAFFIC SPEEDS ON BALBOA BOULEVARD (Requested by Mayor Pro Tem Jan Debay). Receive and file. 14. BUDGET AMENDMENT (BA -007) IN THE AMOUNT OF $33,375. Approve Budget Amendment (BA -007) to increase revenue estimates and expenditure appropriations by $33,375 as a result of donations from the Newport Library Foundation ($30,875) and the Newport Balboa Rotary Club ($2,500). 15. BUDGET AMENDMENT (BA -008) IN THE AMOUNT OF $25,000. Approve Budget Amendment (BA -008) to transfer $25,000 from the Reserve for Tennis to account 4310 -8080 (Services -Prof. & Tech.) to facilitate the development of recreational facilities and the Recreation and Open Space Element of the General Plan. 16. BUDGET AMENDMENT (BA -009) IN THE AMOUNT OF $3,793. Approve Budget Amendment (BA -009) to budget unanticipated revenue of $3,793 from the California State Library, California Library Service, Families for Literacy - PCA 91938 to appropriate the revenue to salaries - permanent part time. 17. Removed from Consent Calendar. 18. BUDGET AMENDMENT (BA -012) IN THE AMOUNT OF $9,700. Approve Budget Amendment (BA -012) to increase budget appropriations in the City Clerk's office to provide for the acquisition and maintenance of a new copier and fax machine. S18A. Removed from Consent Calendar. S18B. Removed from Consent Calendar. Motion by Mayor Pro Tem Debay to approve the Consent Calendar, except for those items removed (2, 5, 6, 8, 9 (Item 2), 11, 17, S18A, and S18B). The motion carried by the following roll call vote: Ayes: O Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None ITEMS REMOVED FROM THE CONSENT CALENDAR 2. INTRODUCE ORDINANCE NO. 96 -39 ADDING CHAPTER 3.06 TO THE NBMC PERTAINING TO SALES TAX INCENTIVES FOR MAJOR SALES TAX GENERATORS. City Manager Murphy explained that the proposed ordinance will establish the authority and procedures to provide sales tax incentives to major retail businesses. Over the last four years, the City has changed the shape of the Volume 50 - Page 302 City Clerk (32) Traffic/Balboa Blvd (85) BA -007 (40) BA -008 (40) BA -009 (40) BA -012 (40) Ord 96 -39 Rev & Fin/ Sales Tax (40) • • • City of Newport Beach City Council Minutes September 23, 1996 manner by which it approaches the business community, in particularly economic development areas. Since the City does not have a Redevelopment Agency, there are some disadvantages for providing incentives or assistance to businesses to either locate, expand or relocate within the community. In May of 1996 the City received a formal request from Sterling Motors for financial assistance to acquire and reopen Newport Imports on Pacific Coast Highway to operate and sell BMWs at that site, as well as to transform the current Sterling BMW site on Jamboree next to the Police facility from a BMW to a Land Rover site. After receiving the request, someone experienced with car dealer proformas reviewed the request to determine whether or not assistance of some form would make sense. He said the review determined that assistance is warranted and in fact, without assistance it is very likely that a new dealer would not be able to operate successfully in terms of achieving a good financial return. In order to facilitate the process where the City could even consider some form of financial assistance, staff put together an authorizing ordinance which would permit the City to consider these types of requests within guidelines. Prior to any further consideration of actual assistance, the Council would have to adopt a resolution which would authorize the forms and the limits of assistance to different industries. Then before any formal consideration would take place pursuant to the ordinance and resolution, a reimbursement agreement defining the terms by which the City would provide assistance would have to be approved. The recommendation would be that the City only provide the assistance so that a business entity would receive a fair return on their investment and then only for the period of time in which they would need to have that assistance to successfully succeed. He stated that Mayor Hedges requested that this item be referred to the Finance Committee and staff is comfortable with that request. Mayor Hedges stated that he understands that this is a skeletal framework and that any specific agreement would be subject to the adoption of a resolution. He said the Council will need to be judicious in the way this is used and under what conditions it is used so it doesn't get out of control. Referring to other "strategic assets" that the City has (Upper Newport Bay, the harbor or the ocean), he said major sales tax generators would fall under this same category, however it hasn't been defined yet and it is incumbent that it is defined by way of policy. Motion by Mayor Hedges to introduce Ordinance No. 96 -39 and to direct the Finance Committee to review the ordinance and forward their comments to the Council to be included for discussion at the time of adoption. Assistant City Manager Wood proposed the following clarification to the language of the ordinance (page 4, subsection (b)). The subsection should read, "full reimbursement of the costs that City has agreed to reimburse." She said that this will make it clear that the City isn't talking about 100% reimbursement. The motion, including the amendment to the ordinance, carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None 5. 1997/98 COMBINED TRANSPORTATION FUNDING PROGRAM APPLICATION. Volume 50 - Page 303 Q1 1 97 -98 Comb Trans Funding Program City of Newport Beach City Council Minutes September 23, 1996 Council Member Glover asked that the project for Pacific Coast Highway between Riverside and Tustin Avenues be withdrawn from this proposal and that the Mariner's Mile group be directed to review this project. If • determined necessary, then the project can be resubmitted during the next two -year cycle. She suggested that the Mariner's Mile group work with the Traffic Department to come up with something that would work. Motion by Council Member Glover to direct staff to apply for funding under the Orange County Combined Transportation Funding Programs for the various projects as amended in the City's application package (withdrawing the project for Pacific Coast Highway between Riverside and Tustin Avenue); to adopt amended Resolution No. 96 -80 approving the submittal of the City's 1997/98 program application to the Orange County Combined Transportation Funding Program; and to adopt Resolution No. 96 -81 of support and Cooperative Project Participation with the City of Costa Mesa for a Measure M funding application in conjunction with the project to design and construct the missing SR- 55/SR -73 connector ramp `B ". Mr. Murphy explained that staff had an opportunity to meet with Council Member Glover on this issue and stated that last year the Council placed this item in their seven year program. He said that the action tonight is to request funding for the engineering and acquisition of the rights -of -way. He said there is no certainty that the City would actually receive funding and as indicated on the schedule, the City will have an opportunity to apply again in two years, therefore staff doesn't feel that the delay will cause any undue problems. He said he is encouraged that the owners in that area are willing to discuss it, and over the next two years it is possible that all the parties involved may find some common ground on this issue. • Mayor Pro Tem Debay asked Public Works Director Webb if the engineering staff could look at the left -hand turn arrow on Pacific Coast Highway going east trying to access Riverside because the turn pocket fills up and cars pull into the median to make that turn. She suggested that if the timing for the green arrow were made a little bit longer, some of the problems might be overcome without increasing it to two lanes. Mr. Webb indicated that the timing can be adjusted, however one of the problems is that you can really only effectively feed an intersection with about 300 to 350 feet of left turn lane before you start obstructing the other direction of traffic and it is already at that limit. He said that staff will work with the State to see if any further adjustments can be made, however there are really too many cars making that left turn for a single left turn lane. Mr. Murphy explained that if one movement is made too long, it will disrupt the synchronization of the signals and affect the flow of traffic on Coast Highway. Ned McCune, 424 E. 16th Street, Costa Mesa, owner of a building between Tustin and Riverside on Coast Highway, said that another left turn lane is needed from Coast Highway onto Riverside, however the current proposal goes far beyond that. The proposal would create a 112 foot wide right of way for 500 feet and the consensus that exists on Mariner's Mile among property owners and residents is that they do not want a freeway or a high speed • artery where businesses would be alienated. He suggested that the issue be referred to an active citizens committee to be studied so that the current problem can be resolved without going beyond what is needed. Volume 50 • Page 304 Q1 1 Res 96 -80 Res 96 -81 (74) City of Newport Beach City Council Minutes September 23, 1996 The motion Ayes: • Noes: Absent: Abstain: vote: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges None None None 6. THIRD CYCLE USED OIL OPPORTUNITY GRANT FUNDS. City Manager Murphy explained that the program as outlined is to recycle used oil. He said that there are situations where used oil is either placed in refuse, which ends up in the landfills, or is poured down the storm drain. The goal of the California Integrated Waste Management Board is to have programs in place in cities to make people aware of the places they can take used oil to have it legally and responsibly recycled so it doesn't end up in the landfills or down the storm drains. He said there have been instances in the last several years where the City has encountered, stopped and cited individuals for pouring used oil in the storm drains. He said there are also fewer gasoline stations in southern California that recycle oil, therefore it is harder to dispose of it legally. This is a grant provided to the City and the City would have no costs in the program other than to administer the program. Mayor Hedges voiced an interest in receiving the statistics on what is being illegally dumped and said one of the problems he has with this grant is that it is taxpayers money, even though it is at no cost to the City budget. General Services Director Niederhaus reported that used oil shows up in the • solid waste stream at curbside two or three times per week. The collector places it back at curbside with a red tag and instructions on to dispose of it, however the closest place is in Huntington Beach. He said there are no longer any service stations or auto parts stores that will take used oil and this program would set up seven to ten stations within the City so it would be convenient for people throughout the City to legally dispose of this material. He said the $232,000, which represents 4 -1/2% of the budget set aside for this statewide, will give the City an opportunity to make some headway with a problem that the City can't afford to do with the General Fund. He described how the City disposes of its used oil and pointed out that now the City pays to have it disposed and also pays 4 cents per quart for new oil. In response to Mayor Hedges' question about establishing public collection sites at the City s two locations for disposing used oil, Mr. Niederhaus explained that there would be problems with allowing access into the facility where the police motor facility is kept and he would have concerns because if other materials are also dumped (paint, thinners, chemicals, etc.), the material becomes hazardous and is very costly to get rid of. He said that staff is looking at two marina sites (City and private), auto parts stores (Mariner's Mile), service stations in Corona del Mar and different locations around the City and the normal allocation is one station per 10,000 population. He indicated that the contractor that the staff is recommending, Americlean, is very professional and has been doing this for Costa Mesa for several years, as well as the City of Orange. Mike Balliet, Project Manager, Americlean Environmental Services, reported • that they have 15 locations now in the City of Costa Mesa and they had zero when they started. He said they did a lot of research in formulating the grant and found out from the Coast Guard that there are 170 illegal releases of oil each year in the harbor. He stated that the purpose of the certified centers program is to take auto - related businesses and provide them with a state incentive for all of their oil and allow them to pay a rebate of 4 cents Volume 50 - Page 305 INDEX CIWMB/ Americlean C -3113 (38) City of Newport Beach City Council Minutes September 23, 1996 INDEX per quart for recycled oil. He said that they have also found that if someone has to go over two miles from their house, the likelihood of them taking the oil decreases significantly. He said that this program will provide reusable • recycling containers for the public. He reported that a school education program has been conducted for 5th and 10th graders in the Newport Mesa Unified School District. Mayor Hedges said that the idea of having collection locations spread around the City is good, however questioned the budget itemization, in particular the cost of $3,000 to coordinate access to classrooms. Mr. Balliet explained that the $3,000 is to make specific changes and to tailor the approach to a particular program (Life - Science, drivers ed, auto shop, etc.) as per the teacher's requests. Council Member Watt said that the major issue is whether the City does this or not and pointed out that the State obviously wants the City to implement this because they initiated the 4 cents per quart on the cost of lubricating oil. She said the people of the state need to be educated to recycle the oil instead of putting it where it doesn't belong. She spoke in support of the grant if a way can be generated to watch the costs. Mr. Balliet explained that the oilmobile will provide 20 collection events over the 22 months remaining in the grant cycle, as well as provide quarterly collections at some designated locations. He explained that this program, as well as the others, can be monitored and at the end of the grant cycle some of the programs may be self - sustaining. • Mayor Hedges stated that any place along the entire length of the peninsula would be within two miles from the two boat service areas on Balboa and questioned the need for the oilmobile at a cost of $44,000 (114 of the grant amount), when these sites could be utilized. Mr. Balliet explained that they felt it would be preferable to find a dry land spot. He stated that the City competed against every other jurisdiction in the State of California for this grant funding and the City received the third largest sum of any jurisdiction in the State. He said they expect to collect about 150 -200 gallons per event or 1500 -2000 gallons per year. He stated that the grant was written and submitted to the State for the program as proposed, however the City may amend the work scope as it sees fit, but since it was a competitive process, there isn't much leeway to change the work scope. In response to Mayor Hedges' question about whether other vendors were invited to submit a grant proposal, Mr. Niederhaus replied that staff was unable to locate other vendors that had the experience of Americlean. Motion by Council Member O'Neil to accept the grant funds in the amount of $232,925.58 from the California Integrated Waste Management Board (CIWMB); and direct the City Manager to execute agreements with the CIWMB and Americlean Environmental Services, Inc. to manage the grant program. • Mayor Pro Tern Debay spoke in support of the motion and stated that the State charges everybody that buys oil 4 cents per quart in order to get the used oil recycled. She reiterated that there will not be any out -of- pocket City expenditures for this program. Volume 50 - Page 306 City of Newport Beach City Council Minutes September 23, 1996 Council Member Edwards said he shares the Mayor's concerns, but said from personal experience he knows there are people that dump these materials illegally. He said he feels this is a step in the right direction, although it • may not be perfect. Mayor Hedges noted that the establishment of collection centers is estimated to cost $88,000 and the remainder of the grant will be used for public education and awareness programs, used oil events, oilmobile and project management. He said that he will support the motion, however informally requested that staff track the assumptions used because he is concerned about the cost effectiveness of the program. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None 8. GREEN ACRES END -USER AGREEMENTS. S18A. AMENDMENT AND REVISED AMENDMENT TO AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH, IRVINE RANCH WATER DISTRICT (IItWD) AND ORANGE COUNTY WATER DISTRICT (OCWD). (Note: Items 8 and S18A were considered together). • City Manager Murphy stated that in July the City Council entered into an agreement with the Orange County Water District (OCWD) and the Irvine Ranch Water District (IRWD), and there were several things the City had to do so that reclaimed water would not be discharged into San Diego Creek and the Upper Newport Bay. He said one of the requirements of the City was to enter into end -user agreements with several large water users within the City: Big Canyon Golf Course, Newport Beach Country Club, the Newport -Mesa School District (2 sites), the City of Newport Beach (park sites), and the Bluffs Homeowners Association before the October 1, 1996 deadline. He reported that the Newport -Mesa School District approved the end -user agreement on September 10, 1996, the Bluffs Homeowners Association Board approved the agreement on September 18, 1996, and staff is continuing to negotiate with the Big Canyon Country Club and the Newport Beach Country Club on legal issues related to the agreement, as well as some of the financial considerations related to the cost of retrofitting their facilities. He said another issue that has to be taken care of is the Capital Outlay Revolving Fund (CORF). He said the County Sanitation District Board of Directors and Finance Committee conceptually approved it and it went back to the Board and they have approved it and authorized staff to enter into an agreement to satisfy the IRWD in terms of their costs associated with CORR Mr. Murphy stated that item S18A is an amendment and a revised amendment to the agreement between the City, IRWD and OCWD, and it relates to several changes to the underlying agreement. He said the original • agreement anticipated OCWD acting as the lead agency to construct the intertie from the Michelson Plant to Jamboree and the pipeline between the current connection on Bristol and Jamboree. The engineering company is under contract to both parties to do the design and both parties have indicated that they would prefer to actually contract to do the work themselves as opposed to having the work solely done and directed by the Volume 50 - Page 307 I I Green Acres Project C- 3055(38) NMUSD -CdM Hi School C- 3114(38) Bluffs C- 3115(38) IRWD/Wetlands Water Supply Project C -3096 (38) City of Newport Beach City Council Minutes September 23, 1996 II 1 OCWD, therefore this agreement provides for that amendment. The second change is Section C of the Recitals in the revised agreement as it relates to paragraph 5 of the agreement for the interim discharge restrictions. He said • Mr. Burnham has been working with the parties to reach an agreement on proposed modifications to the testing and monitoring programs and models, and the parties are very close to reaching an agreement. This would provide an additional amount of time in which to reach that agreement provided the City Council and the other parties approve it. He said it is recommended that Council approve the end -user agreements with two of the end - users; approve the amendment and revised amendment to the agreement with the City, IRWD and OCWD; and authorize staff to continue negotiations with the remaining two potential end - users. He noted that Council can authorize staff to sign the agreement with the two golf courses once an agreement has been reached or staff can return it to the City Council at a special meeting prior to October 1, 1996. Mr. Murphy noted that Council authorized him to execute the original agreement with IRWD and OCWD. Dolores Otting said that the Harbor Ridge Homeowners Association has been sending letters to the City indicating that they want to purchase the reclaimed water; and it has also been suggested that Pacific View would be a good candidate for the reclaimed water. She said one of the reasons given as to why they aren't good candidates for this water is the amount of money that it would cost to take the pipeline to those two locations. She said she doesn't understand why the water can't come across the street and feed down since Newport Coast is at the top of both of those locations and on the other side of Newport Coast is the IRWD. She also said that she is under the impression that as of December of 1996, IRWD will be allowed to dump into the bay. She said her concern is that the City won't get the pipeline from • Santa Ana to Jamboree for approximately two years and then the end -users have to have some time to plumb their facilities, therefore the City is looking at 3 to 3 -1/2 years and she asked what the residents are to believe in regard to what will happen to IRWD's 5 million gallons per day during that 3 -1/2 year period of time. Council Member Edwards explained that there are a series of time limits and the first and most important one is the end -user agreement deadline of October 1, 1996. He said if that deadline is met then certain discharges may not occur. The next cutoff date is October 1, 1997 for the intertie and during that interim period of time the amount of water to be discharged would be reduced to 3.2 of which OCWD can assume 4.6, therefore there won't be any discharge. City Manager Murphy explained that at this point the OCWD only has the capacity to serve the end -users that the City is currently dealing with at a total cost to OCWD of $6.1 million. He said the two projects in question, Harbor Ridge and Pacific View, are projects that the City hopes in the future can use reclaimed water and, if so, it would come directly from the IRWD plant. He said that staff has responded to the Harbor Ridge Association as to why it isn't currently fiscally possible either through the City or through IRWD. He said that if the City achieves these end -user agreements, there will be no discharge this winter. He said that according to the agreement approved in July, there are long -term issues that have to be resolved before October of 1997 that deal with the permanent elimination of the potential for • discharge. He said that the agreement was written so that there would be no discharge of any type if the conditions are satisfied in relation to the creek and the bay. Motion by Council Member Edwards to approve the End -User Agreements for Newport Mesa Unified School District (Corona del Mar High School) and Volume 50 - Page 308 • • City of Newport Beach City Council Minutes September 23, 1996 the Bluffs Homeowners Association and to authorize the Mayor and City Clerk to execute the agreements; to authorize the City Manager and City Clerk to execute agreements (if approved) with Big Canyon Country Club and Newport Beach Country Club; and to approve the amendment and minor modifications to the July 17, 1996 agreement among the parties on the date to agree on modifications to monitoring programs and models between the scientific experts and modifying the responsibility of OCWD to act as the sole manager of the intertie pipeline so IRWD and OCWD act as the lead agency on their respective portions of the pipeline, with no change to completion dates. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None 9. ITEM #2 - PLANNING AGENDA - September 19, 1996. Motion by Council Member Glover to call up Item #2 on the September 19, 1996 Planning Commission agenda, Modification No. 4464, China Palace Restaurant, 2800 West Coast Highway, and set it for public hearing on October 28, 1996. The motion carried by the following roll call vote: Ayes: Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: O'Neil Absent: None Abstain: None 11. CONSTRUCTION OF CURB, GUTTER, AND ROADWAY ON LA JOLLA DRIVE FROM CLIFF DRIVE TO 300' SOUTH OF CLIFF DRIVE. Council Member Glover pointed out that she did not have an opportunity to meet with Mr. Kuster as indicated in the staff report. City Manager Murphy said that at the last Council meeting direction was given to staff to see if the issue with Mr. Kuster could be worked out. He pointed out the area in question on the board and explained that Mr. Kuster has a unique circumstance because his driveway is on a sloping grade and it comes down into a subterranean garage. He said staff has provided a couple of alternatives to satisfy the circumstances of the curb, gutter and pavement improvements and the installation of a cross gutter to eliminate potential flooding. He said that a letter was received on September 20, 1996 from eight property owners on La Jolla in support of the assessment district. The letter noted that Mr. Kuster has been given every opportunity to reach an agreement and the improvements would be spread among all of the property owners. Director of Public Works Webb said that it is his understanding that Mr. • Kuster would like to have the improvements reconstructed all the way down to his garage entrance. He said that the grade for his garage is not being changed, however the driveway will be a little bit steeper, however staff feels that the work can be done in the existing right -of -way without making the improvements all the way down to the garage entrance. Volume 50 - Page 309 INDEX Mod No 4464 (68) LaJolla Dr/ Cliff Dr Encroach (65) City of Newport Beach City Council Minutes September 23, 1996 1 1 Mr. Murphy stated that the additional cost to complete the construction all the way to Mr. Kuster's garage entrance would be approximately $1500- 1800. • Mr. Webb said that based on the vehicle design constraints that staff used, it appears that Mr. Kuster will still be able to enter his garage, however it is a difficult situation. Ross Kuster, 249 LaJolla Drive, said that seven years ago the access for his curb and driveway was built into the right -of -way. He said he has taken the City's plans to a civil engineer to see if his car will bottom -out getting into his driveway, however because of the incompleteness of the plans and unavailability of the cross sections, a determination could not be made. He said in letters to the Planning Department he has asked how the improvements will be made if the City's plan does not work and the Planning Department indicated that he would be responsible for fixing the rest of his driveway. He questioned what materials would be put back into the slab and said he does not believe that what the City is proposing to do meets the code requirements. Council Member Glover said that the City has gone a very long distance in order to accommodate Mr. Kuster and it would not be the City's way of doing business to leave something that would not work properly. She said that the assessment district should not pick up the cost of repairs to private driveways, etc. Trent Harmon, 233 La Jolla Drive, said he has been trying for 15 years to get the street improved and Mr. Kuster's driveway currently encroaches • approximately five feet into the roadway. He explained the process used for concrete work and stated that any improvements that are made into the right -of -way must be 6 inch poured in place concrete. He noted that the ingress and egress has not changed much since Mr. Kuster bought the house, however a mediation facility was installed at the front of the garage and every winter the driveway has to be sandbagged to prevent flooding. As part of the proposal and the City Engineering staffs work, the cross drain in front of Mr. Kuster's property will completely alleviate the water problems. Mr. Webb said that staff has met with Mr. Kuster and a significant amount of information has been transferred back and forth concerning cross sections, grades, etc. He said the drive approaches that the City has in the street rights -of -way all over town are 6 inches thick with no steel, however if it needs steel reinforcements, something can be worked out. He said the primary issue is who should pay for improvements made to a private driveway on private property. Mayor Hedges noted that in the absence of the district, Mr. Kuster would not have to make any improvements or changes to his driveway. He asked what level of assurance the City can provide the property owner if the assumptions are not correct. In other words, if the City isn't right, will the City pay the $1500 to make it right? He said he believes the money should come out of the assessment district because in the absence of the district, this work would not be required, and to his knowledge there is no one else in the district facing this burden. • Motion by Council Member Glover to direct staff to proceed with the procedure of Chapter 27 of the Municipal Improvement Act of 1911 to complete construction of curb, gutter, and roadway on 249 La Jolla Drive, from Cliff Drive to 300' south of Cliff Drive; and if a decision is made mutually among both parties that the driveway does not work properly, that Volume 50 - Page 310 City of Newport Beach City Council Minutes September 23, 1996 an administrative decision will be made and money allocated for that purpose. • City Attorney Burnham said that if the motion contemplates use of assessment district funds, then the motion should make provisions for the expenditure only if it is permitted by law. McKenzie Brown said that if there is a damage element because of change of grade and damages caused by the City doing something with the grade, those costs could be assessed. He said the City can always make the contribution, however if it is determined from an engineering standpoint to be a grade change with resulting damage to the property owner, the statute would allow those costs to be assessed. Mayor Pro Tem. Debay said that since the original driveway was constructed on City property and the property owner has enjoyed the use and benefit of City property for a long period of time, would it be unfair to expect the property owner to spend the $1,500 to make the repairs. Mr. Burnham said that he doesn't think the fact that the property owner has been using City property enters into the equation. Council Member Glover said that everyone needs to understand that this is a public street and can be used by anyone in the City; it is not a private street, however it has just never had curbs and gutters before. The motion carried by the following roll call vote: Ayes: O Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: • None Absent: None Abstain: None 17. BUDGET AMENDMENT (BA -011) IN THE AMOUNT OF $25,000. Council Member Glover asked for a definition of what the consortium is, how long it has been in place and what the advantages are of using a consortium. Mr. Murphy said this is creative proposal that has been in place in a number of agencies in California. He explained that there are nine cities in Orange County that have their own independent fire departments and the other cities participate in the Orange County Fire Authority. When openings occur in those nine cities, notices are sent out and applications received. The applicants are then asked to take a written test, and if they pass they are required to take some type of oral examination, a physical agility examination, and undergo a background check. A list of eligible candidates is then put together and the most highly qualified is selected from the list. He said that this proposal would permit the City to participate with two of the nine cities (Fullerton and Brea) to basically give the same test to a pool of candidates. He said the cost of the test is $5.00 per test and the last recruitment cost $5,000. He said the long term goal would be to have all nine cities administer that test either on a quarterly or annual basis and the candidates that pass the written test would receive a certificate that they • could take to a City to enter the next phase of the process, therefore all nine cities wouldn't be administering the same test over and over and incurring the cost. He said that with the City's turnover, the money allocated in the account to undertake all the testing will be depleted, so Council is being asked to approve a budget amendment, as well as authorize participation in the firefighter testing consortium with the costs to be shared equally Volume 50 - Page 311 BVDEX BA -011 (40) City of Newport Beach City Council Minutes September 23, 1996 INDEX amongst the three participating cities. (Note: The remaining discussion occurred at the end of the meeting in order • to allow staff time to check and provide additional budget information). Administrative Services Director Danner reported that the total professional services budget in the Human Resource Division is $81,500 and of that amount, $54,000 is to pay for a negotiator, $12,000 for pre - employment physicals, $3,000 for CPS (testing service), and $5,000 for Civil Service Board legal expenses. He said the remainder of the $7,500 is allocated for all other recruitment activities (including advertising). He explained that the budget amendment before Council is for $25,000, $18,000 for the recruitment of a new Building and Safety Director and $7,000 to augment or add to the current recruitment budget. Council Member Glover said she thought the City Manager had indicated that the Cities of Brea, Fullerton and Newport Beach were each putting in $25,000 for the consortium, therefore asked for clarification on the amount they would each be contributing. City Manager Murphy said that a portion of the $7,000 is for expenses that staff is anticipating needing for general recruitments (advertising, physical exams, etc.). He said what is really needed now is action on the executive recruiting service to fill the Building and Safety Director position ($18,000) and the consortium and general recruitment portion of the proposal ($7,000) can be brought back at the next meeting. Mayor Hedges asked if any work has been done with respect to combining • the Chief Building Inspector and the Building Director positions and Mr. Murphy replied that staff has not looked at that and he doesn't believe the City would have the candidate to do that. Motion by Council Member Glover to approve Budget Amendment (BA -011) in the amount of $25,000 to increase budget appropriations in the Human Resources/Professional Technical Services Account to provide for the miscellaneous recruitments, including the Building and Safety Director, and participation in a firefighter testing consortium. In response to Mayor Hedge's question about the Orange County Fire Authority, Mr. Murphy said he thinks every agency has an eligibility list and they hire from that list as vacancies occur. Mr. Murphy explained that for a number of years consideration has been given to using a joint recruitment process, however if all the agencies use one process and one list, the tricky question is, "who gets to pick first from the list ?" He said the idea is to have all candidates take a common written test and then each agency can use their own standards for hiring, oral interviews and background checks, to determine eligibility. He said the Fire Authority, as well as all the Orange County fire agencies, could participate in this written test program. Fire and Marine Chief Riley explained that the current Orange County Fire Authority eligibility list is based upon a minimum equivalency of a high • school education/GED, and no other determining factors. He said the minimum requirements for entry level into Newport Beach and some of the other cities is certification as a State Firefighter I. The Fire Authority gives an open test for all persons, selects people from that list and then sends the successful candidates to their own Fire Academy. The City of Newport Beach takes pre - trained individuals that already have met minimum Volume 50 - Page 312 City of Newport Beach City Council Minutes September 23, 1996 Firefighter I certifications, saving the City approximately 10 weeks of training cost for every person hired. He said the participating cities have agreed upon a standard civil service set of standards for both the written and • physical abilities testing, so the testing can be conducted at one time and compiled on a single type of registry to allow any of the cities at anytime to pull a list from the remaining unhired candidates and utilize that for the rest of the recruitment process. Using the new process, the candidates would pre - register in the consortium process. The applicants would be required to pay for the written test and if they have not already been through a physical abilities test would have to pay an additional $5.00 for that test, therefore there would be no administrative cost to the cities. He said that for entry level recruitments, each City would take applicants from the common list that is generated, select whatever criteria they wish to use to determine eligibility, whether it be based upon any gender or specific affirmative action type of goals, or just based upon the best qualified people in the written examination process, and then put only those people through the oral interview process and a behavior assessment test. Mayor Hedges questioned why the City can't utilize the Orange County Fire Authority's recruitment process and then select from their list based on the standards for a Firefighter I. Dolores Otting questioned whether MetroNet has a list since the City belongs to that group, or why Newport and Costa Mesa don't use the same list. She said she gets confused when the City joins another group to do another function when the City is supposed to be somewhat autonomous. Mayor Hedges said he would not support the motion and gave the following • two reasons. He said some investigation needs to be done concerning allowing the Building Director position to go vacant and combining positions in the Building Department, thereby saving the $18,000 recruitment cost and the long -term cost of the position. He also said that not everything has been done that can be done to save the recruitment cost money for firefighters, especially with respect to the other resources available, whether they be the nine cities that are not part of the Orange County Fire Authority, or the Orange County Fire Authority itself. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Watt Noes: Glover, Mayor Hedges Absent: None Abstain: None S18B. RESOLUTION SUPPORTING ALTERNATIVE A IN THE DRAFT COMMUNITY REUSE PLAN AND DRAFT EIR 563 (REQUEST OF COUNCIL MEMBER EDWARDS). Council Member Edwards said that the proposed resolution supports Alternative A, the aviation alternative on the El Toro base closing document, which will ultimately be voted on by the Board of Supervisors on December 15, 1996. • Motion by Council Member Edwards to adopt Resolution No. 96 -82 and to direct staff to distribute copies to at least 24 of the 32 cities in Orange County that supported Measure A and opposed Measure S along with the signature of the Mayor. Volume 50 - Page 313 INDEX El Toro Reuse (54) City of Newport Beach City Council Minutes September 23, 1996 The motion Ayes: • Noes: Absent: Abstain: PUBLIC HEARINGS roll call vote: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges None None None 19. UNDERGROUND UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 71 (BALBOA BOULEVARD BETWEEN "A" STREET AND "Ii" STREET) AND APPROVAL OF BUDGET AMENDMENT (BA -010) IN THE AMOUNT OF $5,200. Director of Public Works Webb reported that this Assessment District process began in 1992. He said the recommended action is for the Council to hear testimony without taking any action and to carry the item forward to October 28, 1996 for the final public hearing. He said that the proposed District is on the bay side of Balboa Boulevard between "A" Street and "H" Street, will include 173 parcels, and complete the undergrounding from "A" Street to the Wedge. The cost of the District is $1,355,000 and the assessment is divided on a per parcel basis, therefore the estimated assessment per parcel is $7,850. He reported that the City received six protests representing 14 parcels, which represents 7.84% of the total district and one or two requests have been received to remove "G" and "H" streets from the District. He suggested that the Council make that determination after hearing the testimony, however explained that if the request is granted, the City would have to fund $15,000 of the cost. He indicated that • there are 11 parcels in that block and the protests received represent 6 of the 11 parcels. He noted that there are three poles in the alley between "G" and "H" streets. Mayor Hedges opened the public hearing Bill Wren, 1118 E. Balboa Blvd., explained that this process was first attempted almost twenty years ago and has been attempted twice, however it was politically unpopular at the time. He asked for a show of hands of those in attendance in support of the District. He indicated that the interest of the property owners is increasing and the District is also supported by BPPAC and the Balboa Peninsula Point Association. He urged the Council to vote in favor of the District. Dean Koontz, 1515 E. Bay, said he owns four parcels on the block between "G" and "H" Streets and he favors the District for aesthetic reasons, as well as for safety reasons relative to the ingress/egress at the entrance of the alley. He also noted that having the utilities above ground presents a problem with security systems since the lines can easily be cut. Charles Cotton, 1509 E. Bay Avenue, Balboa, pointed out that there are no telephone poles from "G" to "H" Street and the high power lines are in the alley. He said that 73% of the property owners in this area are not in favor of the District. He voiced concerns about the notification process and said the first notice that was circulated was dated September 10, 1996. He • explained that when he bought his house on the bay he was required to provide parking, therefore he built his garage across the alley and now he is being assessed for those two parcels as well. He said he is protesting the establishment of this District and again requested that "G" and "H" Streets not be included. Volume 50 - Page 314 I1 ` 9 Underground Util/ Assessment Dist 71 (89) BA -010 (40) City of Newport Beach City Council Minutes September 23, 1996 Lillian Lumpkin stated that Mr. Cotton unfairly represented the property owners on this block. She indicated that she would like the block between "G" and "H" included in the District and questioned whether the pole that • extends into the alley would be included in the assessment district and requested that if it is, that it be removed as well. Mr. Webb confirmed that the pole is part of the assessment district and if the assessment district is formed, it will be removed. Nile Bloom, 927 E. Balboa Blvd., said he believes the residents in the area are misinformed and he was unable to obtain any information about the benefits of the District. He noted that on the notice he received dated September 10th, there was no information as to the address of the assessed property or the assessment amount. He said he was told the following when he questioned the benefits: 1) everyone else has it; 2) it looks better; and 3) it will increase property values. He indicated that he doesn't believe it will increase property values. Van Dam, 1350 E. Ocean Front, said he feels the assessment is high and asked if the City received more than one bid. Mr. Webb explained that the current estimates are put together by the utility companies based on projects of a similar nature and the City has to rely on the phone company and Edison to provide the best estimates. He further explained that the assessment figures are a not -to- exceed figure and if there are cost savings, they are passed on to the property owner. Mayor Hedges explained the process of forming an assessment district and • noted that Council is required to conduct public hearings to determine if the District should be formed. Motion by Mayor Hedges to continue the public hearing to 7:00 p.m. on October 28, 1996; and to approve Budget Amendment (BA -010) in the amount of $5,200 to increase capital expenditure appropriations in the Assessment District Capital Projects fund to reflect an increased estimate on Assessment District No. 71. The motion carried by the following roll call vote: Ayes: O Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None 20. INTERIM URGENCY ORDINANCE PROHIBITING THE APPROVAL OF CERTAIN USES IN THE MARINER'S MILE AREA. Assistant City Manager Wood explained that on August 26, 1996 the Council adopted an interim urgency ordinance to prohibit certain uses in the Mariner's Mile area and also established an advisory committee to study the planning area. She said that since that time the committee has met twice and made a fair amount of progress on the issues related to hours of • operation, architectural treatments and design, drive- through features, related outdoor dining, and traffic. She said that both staff and the committee feel that more time is needed, therefore are recommending that the ordinance be extended for an additional 45 days. She stated that Council Member Glover is also recommending that an additional member be appointed to the Advisory Committee and Study Group, Lee Anne Kirby. Volume 50 - Page 315 110 1 Ord 96 -40 Manner's Mile (68 -24) City of Newport Beach City Council Minutes September 23, 1996 Mayor Pro Tern Debay questioned whether the extension of this ordinance would have any affect on someone if they wished to re -open Tony Roma's, and Ms. Wood explained that it would depend on the traffic generated from • the proposed use. Council Member Glover reported that the owner of Tony Roma's is on the committee and does not have a problem with extending the ordinance. Mayor Hedges opened the public hearing, and, hearing no testimony, closed the hearing. Motion by Council Member Glover to adopt Ordinance No. 96 -40 extending the urgency ordinance for forty -five days, and to appoint Lee Anne Kirby to the Advisory Committee and Study Group. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None 21. EXTENSION OF INTERIM URGENCY ORDINANCE PROBIBITING RESIDENTIAL CONDOMINIUM CONVERSIONS ON BALBOA ISLAND. Assistant City Manager Wood reported that the homeowners association on Balboa Island established a committee to review and make recommendations • on this issue and they have met twice. She said if this ordinance is extended for a period of nine months and one day, it will provide for a total moratorium period of one year, which is allowed by State law. Council Member Watt reported that the committee met last week and suggested the following two options: 1) to not allow conversions; or 2) if allowed, to change the code provisions regulating condominium conversions, however they feel they need more time to study the issues. Motion by Council Member Watt to adopt Ordinance No. 96 -41 extending a moratorium on the approval of Residential Condominium Conversions in the R -1.5 Zoning District (Balboa Island) for nine months and one day. Mayor Hedges opened the public hearing, and, hearing no testimony, closed the hearing. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None • • Mamie Van Doren, 428 31st Street, voiced complaints about the noise and vandalism associated with the bars in the Cannery Village area. She indicated that the Police Department crime statistics indicate that there were more alcohol related arrests in this area of the City than any other area and there are 47 liquor licenses even though the ABC said the area should only support 8 licenses. She asked for Council's help and requested that Volume 50 - Page 316 ALA Ord 96 -41 Balboa Isl Mora (68) City of Newport Beach City Council Minutes September 23, 1996 they undertake the following actions: 1) declare a moratorium on the issuance of new liquor licenses in the Cannery Village area; 2) identify Cannery Village as a problem area and establish a zoning overlay to require • that existing bars close at midnight; and 3) create a police task force to eradicate the dangerous conditions in the area. Mayor Hedges advised Ms. Van Doren that at the beginning of the meeting, Council gave staff direction to provide information on the problems, etc. in the Cannery Village area. George Leeper, 419 30th Street, President of the Cannery Village Association, said he represents 18 property owners from Cannery Village, 13 business owners and 14 residents. He said there are several problems that they are addressing, however they need the Council's help with one in particular, the noisy drunks walking around their area and vandalizing their property on virtually every Thursday, Friday and Saturday night. He said the Planning Department, the Chief of Police and many members of the general community don't realize that Cannery Village is a residential area as well as a mixed -used area. Based on it's formula, the ABC has indicated that the West Newport and Cannery Village area are allowed 8 liquor licenses and there are 47 in a three block area. He said because of the pedestrian traffic in the area it is impossible to sleep at night. He said that the Police do patrol the area, are helpful when they are called and effective when they happen upon an offense. Based on Police Department statistics, during the last two weeks of August there were 15 arrests for alcohol related crimes and 13 reported incidents of theft and vandalism in the Cannery Village area. He reiterated that 36% of all alcohol related arrests in Newport Beach are in Cannery Village. • Gino Di Sano, 912 E. Balboa Blvd., a landlord in Cannery Village, said the amount of vandalism he has had is indescribable. He said he had plans to build two apartments on top of his properties when mixed use was approved for Cannery Village, however said he wouldn't invest another dime in Cannery Village or any part of downtown Newport Beach since it is a losing proposition. Steve Stafford confirmed what the others reported and said one of the things that is wrong is there is no real general plan for that area. He said the City needs to hold a public hearing and put together a comprehensive set of rules and regulations for the clubs to adhere to, develop a way of making them adhere to the rules, and a plan of how to handle the situation if they don't adhere to them. • Tom Hyans, President of Central Newport Beach Community Association, said that the residents have been waiting for the final version of the consultant's report on the planning issues for the peninsula that was to have been presented to Council tonight. He said he read the report and it describes epic changes to the peninsula, but does not address costs or schedules. In the report, the financing is suggested by a plethora of gifts, grants or otherwise free money and redevelopment is called "cumbersome and time consuming" by the consultant. He said that recently the Council ordered that $750,000 in budgeted funds for the 1996 project to continue installing storm drains under Balboa Boulevard be withheld until BPPAC • agrees that the project is compatible with its interests. He said there is no dispute that the peninsula needs attention, but the residents have been put off for years and no improvements can be undertaken on Balboa Boulevard until the subsurface storm drains are installed. He said the funds that were taken without any notice should be released for storm drains since this has nothing to do with BPPAC study. Volume 50 - Page 317 City of Newport Beach City Council Minutes September 23, 1996 Mayor Hedges explained that the funds were not taken, and in the absence of any further Council action, will be expended this fiscal year. •CURRENT BUSINESS 22. COMMUTING VEHICLES (Requested by Mayor John Hedges). Mr. Murphy said this item was placed on the agenda at the request of Mayor Hedges, therefore he provided some background information in the staff report, as well as a copy of a June 26, 1995 report, which discussed this issue in conjunction with the budget checklist. In 1992 there were a total of 59 vehicles that were used for commuting purposes by City employees and today there are 38; and of those 38, 21 are utilized by police and fire personnel, including eight motor officers who use them for commuting purposes. He said 11 of the vehicles are used by Public Works employees, including the director and 5 staff members who are first responders to water, sewer and electrical problems around the clock. There are 6 commuting vehicles utilized by executive or department director level employees, including himself, City Attorney, Police Chief, Fire and Marine Chief, General Services Director and Public Works Director, all of whom are on call after hours and would be the first responders in any kind of emergency. He said that staff has provided a status report and noted that the last time the Council discussed this was on June 26, 1995 and staff was directed to develop a policy. He said that a consultant was retained to study the vehicle issue, however due to health problems was unable to finish it. Subsequently, the Arroyo Group was retained to finish the study and it is near completion. He said the consultant was reluctant to furnish the report for this meeting • since it wasn't complete, however has committed to providing it by the end of September. Mr. Murphy reviewed the alternatives, as outlined in his report, to approach this issue: 1) to await the report and recommendations of the Arroyo Group and then return with a policy and recommendation; 2) direct staff to continue the practice of reducing the commuting vehicles as normal turnover in staff occurs; or 3) direct the staff to eliminate the practice of permitting any vehicles for commuting purposes (other than emergency on- call and stand -by personnel). Mayor Hedges asked what the study is supposed to accomplish with respect to a review of commuting vehicles. He said he is aware that the overall fleet operation and maintenance is being studied, however questioned what that has to do with the policy question about whether or not 38 vehicles should be allowed for personal use. Mr. Murphy said the consultant has been asked to look at the use of the vehicles, mileage, etc. and so far has identified certain vehicles that are under- utilized and can be phased out of the fleet. The second aspect is to research how other cities have addressed commuting vehicles and to make recommendations for a commuting vehicle policy. Mr. Murphy reported that there are senior staff members that don't have vehicles, however junior staff members to them have vehicles basically because of the steps that have been taken to phase vehicles out as vacancies occur. Mr. Murphy said that as vehicles are phased out there would still be positions junior in terms of the organization that would have commuting vehicles in order to respond to • emergencies. He said he is hopeful that the policy will address those issues in terms of seniority. Mr. Webb reported that the Public Works duty vehicle has a full set of tools so the employee can respond rapidly and Mr. Murphy added that there is an after hours jeep in the Marine Department that is used to respond on the Volume 50 - Page 318 INDEX Budget Commuting Veh (40) City of Newport Beach City Council Minutes September 23, 1996 beach and it is equipped with marine equipment. Council Member Edwards said that he feels the Council has the cart before • the horse since the report hasn't been completed and it would seem appropriate to wait until the report is received before any decisions are made. Mr. Murphy explained that the vehicles are not used strictly for commuting. For example, the vehicle he uses to commute to work is also used during the weekday to commute to various meetings throughout the County and the region, as well as during the weekend to look at different issues going on in the City. He said there are a number of employees who have had vehicles for a long period of time as part of their compensation package, therefore the vehicles have not been eliminated, but as those positions have turned over, the vehicles have been phased out. He said that the vehicles are not just used by the employee and are available to all City staff during the regular work day, but at the end of the workday, the City employee takes the vehicle home for response after hours. Mr. Murphy stated that there are restrictions on the personal use of the vehicle, and the City Attorney, City Manager, Police Chief, Fire/Marine Chief, and Police Captains are the only members of staff that have the personal use of vehicles. He explained that the other vehicles are not authorized for personal use and the mileage is monitored on the cars to determine if they are being used properly. Dolores Otting said that this item was brought up in a Finance Committee meeting prior to being reviewed by Council last year. She asked if the money for the vehicles was phased out when the vehicles were phased out; and if the compensation for the new person is based upon no car at the old • rate of pay, which included the car allowance. She said she doesn't know of any reason why the City doesn't rent cars on a monthly basis and turn them in for a new car every 30 days. This would result in a considerable costs savings to the City because there would not be a need for insurance, maintenance, oil changes, brakes, tires, etc. She said there is no reason for the City to depreciate vehicles because the City doesn't make money, therefore doesn't pay taxes. Motion by Mayor Hedges to continue this item until October 28, 1996. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None 23. COST OF SERVICES STUDY (KPMG). Mr. Murphy explained that the multiple volume detail of the study was previously provided to Council and what is being presented tonight is a condensation of that report. He said the executive summary provides the potential fee changes broken down by Department and in a summary form, staff tried to identify the number or level of units, the current fee, the current revenue, and KPMG's recommendations in terms of the percentage • cost recovery, along with staff's recommendations. To assist in reviewing this information, staff provided a document which corresponds to the spreadsheet chart and lists individually the explanation of the various areas that were studied by KPMG, translating those from the areas that were actually studied, to fees that either the City currently charges or areas that the City may want to review. Staff then looked at each one of those areas Volume 50 - Page 319 QP 1 ' KPMG Admin Serv/ Finance (40) KPMG Study C -3054 City of Newport Beach City Council Minutes September 23, 1996 INDEX and the ways in which authority to charge the fees has been established by Council (ordinance, California Government Code, resolution, policy, charter, etc.). He reviewed the following four ways which the Council may wish to use • to proceed: 11 to establish a series of study sessions over the next several weeks to review the material by departmental areas; 2) to delegate the responsibility for the review to the Finance Committee; 3) to delegate it to a new Ad Hoc City Council committee to deal solely with this issue; or 4) to set this for immediate action at a subsequent City Council meeting. He said that following City Council direction (straw votes), staff would bring back a master ordinance with any resolutions needed to actually implement the changes. He said there are many places where authority is given and it is difficult when changes need to be made to go through all of these, therefore staff is recommending that a master ordinance be adopted and all of the prior authorizations repealed. Council Member Watt said that having an Ad Hoc or Finance Committee study this and then come back to the full Council for a straw vote would work best. Mayor Pro Tern Debay spoke in support of a study session because the Council candidates would be allowed to attend and they would not be able to attend the Finance Committee meeting because of Brown Act regulations. Mayor Hedges said that before the Council raises fees, they need to decide whether or not the City should be conducting the services for which the fees are levied. He said the Council needs to make the decision whether the services are essential services and then take the method one step further to decide to what extent the general taxpayer should be subsidizing those • services. He said that if the Council as a body can make the judgment of what the fee should be for defined essential services, in which case maybe they should be covered completely by the general taxpayer; and define non- essential services and then have those costs, or some percent of them, recovered, the Council won't get wrapped up in determining what the actual fees should be. He said he would propose that the non - essential and essential services be identified and 100% of the costs recovered for the non- essential services, or those which benefit a defined segment of the community and don't benefit everybody in the community. He said that there was some discussion on the part of staff that there is some elasticity of demand because if the City charged what the service was worth and took the burden off the general taxpayer, programs would fail due to lack of sign -ups. He said these services have grown in time and in total, cost a lot of money that could be spent elsewhere for general services. He said the programs would be continued and administered by the City, but the full cost of the service would be charged. Motion by Council Member Cox to refer this to the Finance Committee for review and bring it back to the Council for additional discussion. He said he thinks the Finance Committee can review the fees, however he doesn't agree with the Mayor's assessment of the situation and said that what has been described is something that staff does year after year. In the private sector costs are averaged out and amortized, otherwise there wouldn't be new product development. He said government has been criticized because facility overhead is never charged, so when you talk about some of the fees, it • could easily be argued that there is a facility overhead that is involved in that cost that wasn't attributable to the particular fee or cost allocation. In response to Mayor Pro Tem Debay's concerns about the Finance Committee meetings, Council Member Cox said that his understanding is that there is not a Brown Act problem with the meetings since they are open Volume 50 - Page 320 City of Newport Beach City Council Minutes September 23, 1996 FITP-175N meetings and anybody can attend, however there may be a voting problem. Mayor Hedges explained that anyone can attend as an observer, however a • Council Member would not be allowed to participate in the decision - making process. Council Member Glover made references to the document imaging system proposal and the way it was introduced and treated as a personal agenda issue, rather than as a public policy, and if the Finance Committee is asked to look at this issue, then it should be looked at as a public policy issue and not a personal issue. She said she would hope that the City Council would respect the recommendations brought back by the Finance Committee and treat them in such a manner, and so she has some concerns when Council Member Debay says she doesn't feel comfortable with the process. Council Member Watt said she thinks the issue is about being sure that all agree on the general principals of what the Finance Committee will be reviewing. She suggested an interim update on how the committee is looking at this issue on October 28th, so that Council can be sure that when the recommendations do come back to the full Council, the premises upon which they're brought back are understood by everyone. Mayor Hedges said that one of the real failings of the committee process is the way it is treated and explained that the committees don't issue committee reports and all that is ever seen is the staff report. He said the City has committees for a reason, however sometimes a staff report may or may not even reference the specific committee action and/or discussion. He said staff, as well as committees, owe Council an explanation of how they • Justify certain issues, no matter what committee it is or what they do. Council Member Watt commended staff on the way the report was presented to Council and Mayor Hedges said he would expect that the committee would issue a report in the same form. Tom Hyans said that the bottom line on the report presented tonight is about $5.25 million and the changes that are proposed equate to about $1.25 million plus. He said there are probably not more than a dozen big items in the report and he has not been able to get answers on some of the items. For example, he said the budget for paramedics salaries is $1.5 million and the cost that has been allocated by Peat Marwick to that function is only $540,000, so somewhere there is a million dollars of expense. He questioned whether those kinds of problems would be solved by the Committee. Mayor Hedges announced that the Finance Committee meeting would tentatively be set for October 4, 1996 at 3:00 p.m. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges Noes: None Absent: None Abstain: None •MOTION FOR RECONSIDERATION - None ADJOURNMENT - Monday, October 28, 1996 - 5:00 p.m. - Closed Session 7:00 p.m. - Regular Meeting Volume 50 - Page 321 City of Newport Beach City Council Minutes September 23, 1996 * * * * * * * * * * * * * * * * * * * * ** •The agenda for the Regular meeting was posted on September 18, 1996 at 2:00 p.m. and the supplemental agenda was posted on September 20, 1996 at 2:07 p.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Mayor City Clerk • Volume 50 - Page 322 IN 1