HomeMy WebLinkAbout03/22/2011 - Regular MeetingCity Council Minutes
City Council Regular Meeting
March 22, 2011 — 7:00 p.m.
I. STUDY SESSION - 5:00 p.m
II. CLOSED SESSION - 6:32 p.m.
A. Conference with Leas] Counsel - Existing Litigation (Government Code S
54956.9(a)): One matter:
1. Banning Ranch Conservancy v. City of Newport Beach, Orange County
Superior Court Case No. 30- 2010 - 00365758
B. Conference with Legal Counsel - Anticipated Litigation - Exposure to
Litigation (Government Code & 54956.9(b)): One matter:
1. Potential exposure to litigation arising from threat of violation from
California Coastal Commission for brush clearance allegedly being
performed without a Coastal Development Permit on City Sunset Ridge
Park property prior to City ownership.
C. Public Employee Performance Evaluation (Government Code 6 54957(b)(1)):
The City Council will meet in closed session to consider the appointment,
employment, evaluation of performance, discipline, or dismissal of two public
employees.
Titles: City Manager and City Clerk
III. RECESS
IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
V. ROLL CALL
Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor
Henn, Council Member Selich, Council Member Curry, Council Member Daigle
VI. CLOSED SESSION REPORT - City Attorney Hunt announced that there was no
reportable action taken.
VII. PLEDGE OF ALLEGIANCE - Boy Scout Troop 37
VIII. INVOCATION -Mayor Henn
IX. PRESENTATIONS
Recognition of Corona del Mar High School Boys Water Polo Team, 2010 CIF
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Southern Section Division II Champions - Mayor Henn recognized the water polo team
members in attendance and the coaches. The team presented the City with a plaque and
photos.
Orange County Water District (OCWD) Storm Water Capture - Steve Sheldon, OCWD
Director, and Mike Markus, General Manager, utilized a PowerPoint presentation to discuss
OCWD water sources, water challenges, stormwater capture, and the Prado Dam's current
situation.
X. NOTICE TO THE PUBLIC
XI, CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS
WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR
REPORT (NON- DISCUSSION ITEM)
Mayor Pro Tem Gardner referenced an email from Dudley Johnson relative to Castaways
Park and the placement of the Ronald Reagan and 1/1 Memorial statues. City Attorney
Hunt indicated that the planned community text discusses objects that are unobtrusive, but
noted that the placement and size of the Reagan statue has not been determined, and
findings need to be made. He stated that he will provide Council with a copy of his response
to Mr. Johnson's email. Interim Planning Director Campbell added that the Zoning Code
outlines specifically what can be exempted.
Council Member Daigle announced that the 40th Annual Police Appreciation Breakfast will
be held next Wednesday.
Council Member Curry referenced the tsunami in Japan and encouraged residents to become
involved in the City's Community Emergency Response Team (CERT) in the event that a
natural disaster ccctus in the City.
Mayor Henn announced that the Neighborhood Revitalization Committee will meet on April
6 from 4:00 to 6:00 p.m. in the Council Chambers and the Tidelands Management
Committee will meet on March 30 from 4:00 to 6:00 p.m. in the Council Chambers. He
encouraged attendance at both meetings because they need input relative to the process that
will form the Citizen Advisory panel component of the committees. He reported that, on
March 23, he will be assisting with Mayor's - Meals -on- Wheels at the OASIS Senior Center;
on March 23, the members of the former Marina Park Committee will be receiving a
project update on the project at 3:00 p.m. in the Council Chambers; on March 24, he and
Council Member Curry will be attending the Orange County Mayor's Prayer Breakfast at
the Hyatt in Irvine; on April 2, there will be a Meet the Mayor session from 9:00 to 10:30
a.m. at the Newport Coast Community Center; on April 8, he will be attending the Gift of
Literacy Luncheon at the Radisson Hotel; on April 9, the firefighters will be celebrating their
100th anniversary by holding a pancake breakfast at Fire Station 7 in Santa Ana Heights;
and on April 9, the Newport Beach Arts Exposition will take place at 4:30 p.m. in the
Central Library.
XII. CONSENT CALENDAR
A. READING OF MINUTESIORDINANCES AND RESOLUTIONS
1. MINUTES FOR THE STUDY SESSION AND REGULAR MEETINGS
OF MARCH 8, 2011. [100 -20111 Waive reading of subject minutes,
approve as written, and order filed.
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2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in
full of all ordinances and resolutions under consideration, and direct City
Clerk to read by title only.
B. ORDINANCES FOR ADOPTION
3. CODE AMENDMENT NO. CA2010 -010 (1537 SANTANELLA
TERRACE) - SECOND READING AND ADOPTION OF ORDINANCE
NO. 2011 -9 TO CHANGE THE FRONT SETBACK ESTABLISHED ON
SETBACK MAP S -9A - IRVINE TERRACE FROM 34 FEET TO 19
FEET FOR THE PROPERTY LOCATED AT 1537 SANTANELLA
TERRACE. [100 -2011] Conduct second reading and adopt Ordinance No.
2011 -9, as introduced by the City Council on March 8, 2011 (Code
Amendment No. CA2010 -010) to change the front setback established by
Setback Map S -9A - Irvine Terrace from 34 feet to 19 feet for the property
located at 1537 Santanella Terrace.
4. APPROVAL OF MASTER FEE SCHEDULE AND CHANGE IN
SUBSIDIES. [100 -2011] a) Conduct second reading and adopt Ordinance
No. 2011 -10, amending NBMC Section 3.36.030.3.4; and b) conduct second
reading and adopt Ordinance No. 2011 -11, updating NBMC Sections
14.12.085(A) and 14.12.125(A) to refer to the appropriate fees. Council
Member Daigle voted No on this item.
C. CONTRACTS AND AGREEMENTS
5. FHASES 4 & 7 OF THE TRAFFIC SIGNAL MODERNIZATION
PROJECT - COMPLETION AND ACCEPTANCE OF CONTRACT NO.
4395. [381100 -2011] a) Accept the completed work and authorize the City
Clerk to file a Notice of Completion for the project; b) authorize the City
Clerk to release the Labor and Materials Bond 35 days after the Notice of
Completion has been recorded in accordance with applicable portions of the
Civil Code; and c) release the Faithful Performance Bond one year after
Council acceptance.
In response to Council Member Curry's questions, Public Works Director
Badum indicated that the City is trying to use Measure M funds for Phases
6 and 8 so, until a determination about funding is known, the schedule for
the two phases has not been finalized.
6. TSUNAMI WARNING SYSTEM - COMPLETION AND ACCEPTANCE
OF CONTRACT NO. 4152.[38/100-20111 a) Accept the completed work
and authorize the City Clerk to file a Notice of Completion for the project; b)
authorize the City Clerk to release the Labor and Materials Bond 35 days
after the Notice of Completion has been recorded in accordance with
applicable portions of the Civil Code; and c) release the Faithful
Performance Bond one year after this Council acceptance.
D. MISCELLANEOUS
8. BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE
NEWPORT BEACH PUBLIC LIBRARY FOUNDATION (NBPLF) AND
APPROPRIATE FUNDS FOR MAINTENANCE AND OPERATIONS
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BUDGETS FOR FY 2010/11. [100 -2011] Approve Budget Amendment
No. 11BA -031 to increase revenue estimates by $7,450 in Account No. 4090-
5893 (Library Foundation/NBPLF). Expenditure estimates will be increased
by $5,000 in Division 4090 (Library Foundation) and by $2,450 in Division
4060 (Literacy Services).
9. GENERAL PLANT ANNUAL STATUS REPORT INCLUDING
HOUSING ELEMENT REPORT (PA2007 -195) - Pursuant to State
law, the City prepares an annual report on the status of the City's
General Plan and Housing Element for its legislative bodies, the
State Office of Planning and Research (OPR), and the State
Department of Housing and Community Development (HCD). After
review by the City Council, the report is submitted to OPR and
HCD. [100 -2011] Receive and file.
Motion by Mavor Pro Tern Gardner, seconded by Council Member Rosanskv to
approve the Consent Calendar, except for the item removed (7); and noting the No vote on
Item 4 by Council Member Daigle.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor
Henn, Council Member Selicb, Council Member Curry, Council Member Daigle
XIII. ITEMS REMOVED FROM THE CONSENT CALENDAR
PLANNING COMMISSION AGENDA FOR MARCH 17, 2011. [100 -20111
Acting Planning Director Campbell reviewed Planning Commission Item 4 (Zoning
Code Implementation) as it relates to the authority of alcohol sales, in -lieu parking,
and Planning Commission appeals.
Mayor Pro Tern Gardner believed that all the issues relative to the Zoning Code
implementation should be discussed by Council.
George Schroeder expressed concern relative to alcohol licenses,
the overconcentration of liquor licenses on the Peninsula, and took issue that Zoning
Administrator hearings are held in the afternoon which makes them difficult to
attend. He noted that the Planning Commission voted unanimously to have alcohol
license applications go before the Commission.
Council Member Curry stated that the Planning Commission made significant
changes that should come before Council in the form of a staff report, not by pulling
the item off of the Consent Calendar in order to initiate discussion.
Motion by Council Member Currv. seconded by Council Member Rosanskv
to receive and file.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Gardner,
Mayor Henn, Council Member Selich, Council Member Curry, Council Member
Daigle
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XIV. PUBLIC COMMENTS
Laura Dietz, Newport Beach Rotary Club, reported that the Rotary Club will be holding a
fundraiser on April 2 to raise funds to assist the Newport Beach Central Library with its
State funding shortfall. She stated that people can call her to receive more information (949-
721- 8035).
XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None
XVI. PUBLIC HEARING
10. CROW BURGER KITCHEN MINOR USE PERMIT (PA2010 -155) - AN
APPEAL OF THE PLANNING COMMISSION'S APPROVAL OF MINOR USE
PERMIT NO. UP2010 -036 ALLOWING AN EATING AND DRINKING
ESTABLISHMENT WITH A COVERED OUTDOOR DINING PATIO WITH A
TYPE 41 (ON SALE BEER AND WINE, EATING PLACE) ALCOHOLIC
BEVERAGE CONTROL (ABC) LICENSE. [100 -2011]
Jim Campbell utilized a PowerPoint presentation to discuss what the Zoning
Administrator and Planning Commission approved. He reported that the item was
appealed to Council by Council Member Rosansky in order to evaluate the hours of
operation for alcohol service on the outdoor patio.
Mayor Henn opened the public hearing.
Steve Geary, Crow Burger, stated that Crow Burger is a gourmet burger restaurant
and believed that the Zoning Administrator was fair and sensitive to the
neighborhood. He highlighted the results of a report from an acoustic engineer.
Sean Whiskerman, Catellus Development Group - owners /developer of The Landing
shopping center, stated that after they met with community members to hear their
interests and concerns, they sought after operators that would be
complimentary and good corporate citizens. He commended Crow Burger for being
that type of business and for meeting with the community. He expressed concern
over the Commission's action and discussed the timeframe for the opening of the
center.
Don Chambers expressed concern about adding another place where alcohol is
served on the Peninsula and requested that Council uphold the Commission's
decision.
George Schroeder expressed concern for the number of liquor licenses on the
Peninsula. He urged Council to be careful of who is issued an alcohol license. He
showed slides of a shopping center that has many alcohol licenses and noted that
residents live 80 -feet from the parking lot of the proposed site.
Craig Oka, Crow Burger architect, discussed the importance of the patio and
believed that limiting the hours of operation and alcohol service will hinder allowing
the operation to work. He indicated that the three -foot railing is made of glass and
is a requirement for the ABC license. Acting Planning Director Campbell noted that
raising the railing would start to enclose the patio and reiterated that the Crow
Burger was looked at as a restaurant and not a bar.
Joe Reiss stated that he and his neighbors support the Zoning Administrator's
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decision and did not understand why the Commission changed the hours of
operation but agreed to extend Malarkey's hours to 11:00 p.m. He believed that the
new center is a positive step for the community and hoped that more upscale
restaurants would come to the area.
Barbara Chambers believed that the. hours of operation should be limited and
expressed support for the Commission's decision.
Hearing no further testimony, Mayor Henn closed the public hearing.
Council Member Rosansky emphasized that Crow Burger is not bar and will only be
open until 11:00 p.m. He noted that the location was a retail center before so the
area already has experience with the parking issues. He agreed with Mr. Riess'
concern about Malarkey's and indicated that he will be supporting the Zoning
Administrator's recommendation.
Motion by Council Member Rosansky, seconded by Mayor Pro Tern
Gardner to a) determine that the appropriate time limit on the service of alcoholic
beverages on the outdoor patio will be 10:00 p.m.; and b) adopt Resolution No. 2011-
27 approving Minor Use Permit No. UP2010 -036 subject to findings and conditions
included in the resolution.
Council Member Curry stated that a good case has been made for the 10:00 p.m.
time limit and noted that he will be supporting the motion.
Council Member Daigle stated that The Landing is an investment into the City and
agreed with the Zoning Administrator's recommendation.
Council 'Member Hill stated that the Crow Burger restaurant will draw an upgrade
of clientele to the area and expressed his support. He also pointed out that the minor
use permit includes 74 conditions.
Mayor Henn agreed that the area will be revitalized with businesses that attract a
higher level clientele and that Crow Burger is a restaurant, not a bar.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner,
Mayor Henn, Council Member Selich, Council Member Curry, Council Member
Daigle
XVII. CURRENT BUSINESS
11. SPECIAL EVENTS ADMINISTRATIVE POLICY. [100 -20111
Public Information Manager Finnigan utilized a PowerPoint presentation to review
past practices and proposed changes, highlight the process, discuss changes since
the March 8 Study Session, and highlight the recommended fee changes, the
proposed timeline, and next steps.
Council Member Curry expressed support for the new fee Police service fees.
He recommended changing the language to indicate that, if the event is charitable in
nature, it should benefit a Newport Beach or Orange County -based
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charitable organization.
In response to Council questions, Public Information Manager Finnigan explained
the reason for the reduction of City support to 25 %. Regarding the annual Persian
New Year celebration, City Manager Kiff indicated that the event does not come
from an organization but reported that the City staffed the parking lot in order to
charge for parking. He stated that, if the modified hourly rates are acceptable, they
will be added to the Master Fee Schedule.
Motion by Council Member Rosansky, seconded by Council Member Hill to
a) approve the revised administrative process for handling requests for special event
support, including the amendment to change the language such that events that are
charitable in nature should benefit Newport Beach or Orange County -based
charitable organizations; and b) direct staff to implement the modified hourly rates
for staff support to community events.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner,
Mayor Henn, Council Member Selich, Council Member Curry, Council Member
Daigle
12. MEMORANDUM -OF AGREEMENT WITH THE PORT OF LONG BEACH
FOR THE RHINE CHANNEL CONTAMINATED SEDIMENT CLEANUP
PROJECT. [381100 -20111
Harbor Resources Manager Miller reported that this is a milestone, the Port of Long
Beach (POLB) is anxious to sign the Memorandum of Agreement, and the City will
be the first entity in POLB.
In response to Council questions, it was confirmed that the City may be able to
dispose of more sediment and material from the Lower Bay if other entities drop out
of the program. City Attorney Hunt agreed that the agreement leaves little room to
negotiate, but staff feels that this is worth the risk and this is an acceptable risk
based on the situation.
Regarding the tidelands fund, City Attorney Hunt explained that the City holds the
tidelands trust for the benefit of the State. If the City is going to spend over
$250,000 of tidelands funds, it needs approval from the State Lands Commission.
He indicated that there is some ambiguity regarding how much of this is tidelands.
City Manager Kill indicated that the City has funds available since this is a priority,
but the City would prefer to use as much of the tidelands funds before needing to use
general fund monies. Mayor Henn believed that this should be represented as a loan
from the general fund to the tidelands fund, so it becomes an obligation of the
tidelands fund and that future revenues from tidelands funds would be available
over time to repay the general fund for this expenditure. He discussed the
importance of creating the tidelands master plan which would include the
designation of funding sources. He emphasized that there needs to be a clear
mechanism so that the general fund is reimbursed over time. City Attorney Hunt
stated that this can be documented as potentially an expressed loan from the
general fund to the tidelands fund. He indicated that, once the details are worked
out with the State Lands Commission, staff can confirm the ability for
reimbursement. Mayor Henn requested that staff study this approach and, if
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appropriate, come back to Council
Council Member Daigle commended staff for their hard worked and noted that this
is something that is cost effective.
Motion by Council Member Daiele, seconded by Council Member Rosansky
to a) approve and execute the Memorandum of Agreement with the Port of Long
Beach (POLB) to dispose of the sediments from the Rhine Channel Dredging Project;
b) authorize the City Manager or his designee to execute any future agreements
related to the Rhine Channel Dredging Project to ensure the City meets the strict
project schedule imposed by the POLB; and c) look into the funding mechanism of
loaning money from the general fund to the tidelands fund, and bring an item back
to Council if the loan is appropriate.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner,
Mayor Henn, Council Member Selich, Council Member Curry, Council Member
Daigle
13. ORDINANCE NO. 2011 -12: AMENDMENT OF THE NEWPORT BEACH
MUNICIPAL CODE, TITLE 6 - GAS - POWERED LEAF BLOWERS. [100-
20111 .
Assistant to the City Manager Houston utilized a PowerPoint presentation to
discuss the September 2010 survey results, highlight the November 9, 2010 Study
Session discussions, and review the proposed ordinance. .
Mayor Pro Tem Gardner indicated that the issue is not just about noise, but the
spreading of dust, pollens and allergens. She believed that the ban should also
include electric blowers. She further discussed the reasoning behind exempting the
City from the ban.
Council Member Curry noted communication received from an outdoor power
equipment institute. City Attorney Hunt indicated that the ordinance does not
address emissions, but focuses on noise and the secondary effects of leaf blowers. He
stated that Council can proceed with the first reading of the ordinance, but he will
do more research before second reading.
Mayor Henn noted his concerns with blown debris and noise, not emissions, and
expressed support for Mayor Pro Tem Gardner's assertion that electric blowers
should be included. However, he recommended allowing its use for people who are
seniors or handicapped.
Discussion ensued relative to the opt -in or opt -out program. City Attorney Hunt
believed that staff came up with the right recommendation relative to using the opt -
out approach from an enforcement standpoint because there will be a clear record of
which homeowner associations (HOAs) are participating.
Council Member Hill agreed that there should be regulations that allow people who
are unable to clean their own yards to be able to use a leaf blower, but regulate the
hours of operation. He believed that there is a difference between electric and gas -
powered leaf blowers, and that the newest generation of gas - powered blowers may
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be different and quieter. Regarding the ordinance, he stated that the last whereas is
vague, and recommended a language change and requested clarification relative to
how HOAs can opt -out.
Council Member Curry believed that this should be adopted and that opting -out will
work because an HOA would have to contact the City and provide documentation in
order to opt -out. He expressed concern with prohibiting electric leaf blowers, except
for senior citizens and handicapped residents, due to enforcement issues. He
expressed support for the ordinance, as written.
Mayor Pro Tem Gardner expressed concern relative to trying to regulate the types of
blowers that are being used. She indicated that EQAC reviewed Laguna Beach's
regulations. City Manager Kiff indicated that he is unsure of Laguna Beach's
regulation is being enforced everywhere and City Attorney Hunt added that the
regulation is 15 years old.
Mayor Henn noted that there are 151 HOAs in the City and only some have real
authority. He agreed that this will only work if there were an opt -out program. He
stated that he is willing to allow an exception for electric leaf blowers for people who
have a real need.
Municipal Operations Director Harmon confirmed that decibel (dBA) ratings of less
than 65 and hours of operation are written into the City agreements with landscape
contractors. He agreed that electric leaf blowers do not have as much power to clear
sand off the boardwalk. He suggested, instead of exempting seniors and
handicapped residents, to exempt certain parts of the City (street ends,
boardwalk). He stated that electric leaf blowers are quieter than gas - powered
blowers but need to be ran without the use of loud generators. He expressed concern
that banning electric leaf blowers leaves no third option for the residents, so debris
may end up pushed off the property and into the street.
Carol Martin stated that the leaf blower is an essential tool for older gardeners, sand
can be blown with an electric blower, and the survey was not aimed at senior citizen
homeowner. She supported allowing an exemption for senior citizens who tend their
own yard, HOAs, and the City.
W.R. Dildine expressed support for the ordinance but suggested including language
in the ordinance relative to the six-month phasing -in period. He expressed concern
about the long extension cords and increased power needed to operate an electric
blower on large lots, and suggested waiving the fee during the phase -in period for
placement of an electrical permit and outlet.
Claudia Gray expressed support for the ordinance due to the noise levels in her
neighborhood at all hours of the morning and afternoon.
Karen Tringah stated that the Corona del Mar Homeowners Association conducted a
survey and that they support implementing restrictions and a ban on leaf blowers
due to noise, pollution and debris issues. She also expressed concern that debris may
be blown into the storm drains.
Christine Carr suggested banning all forms of blowers for residential gardeners.
Referencing Section 6.04.055.B.3, Larry Tucker indicated that he is unsure if this
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applies to planned communities, like at Big Canyon Country Club, and if greens
maintenance includes the entire golf course.
Motion by Mayor Pro Tom Gardner, seconded by Mayor Henn to bring back
an ordinance amending Newport Beach Municipal Code Title 6, Chapter 6.04
(Garbage, Refuse and Cuttings), by revising Section 6.04.055 to incorporate a ban for
both electric and gas - powered leaf blowers, include an exemption for senior citizens
and handicap residents for their private property, add language that clarifies the
maintenance of golf courses and applicability in planned communities, uses the opt -
out program, and incorporates language regarding the six month phase -in period.
Council Member Selich stated that he is not in favor of the motion or ordinance as it
stands, believing that the City should regulate based on noise and require operators
to use certified leaf blowers similar to Menlo Park's regulation. City Manager Mff
noted that Section 10.28.045 discusses noise levels being less than 65 dBA.
Regarding the motion, City Manager Kiff expressed concern about how to enforce
the exemption regarding handicap residents. Mayor Pro Tem Gardner stated that
she will amend her motion to only exempt senior citizens.
Amended motion by Mayor Pro Tom Gardner, seconded by Mayor Henn to
bring back an ordinance amending Newport Beach Municipal Code Title 6, Chapter
6.04 (Garbage, Refuse and Cuttings), by revising Section 6.04.055 which
incorporates a ban for both electric and gas - powered leaf blowers, includes an
exemption for senior citizens for their private property, adds language that clarifies
the mainrenance of golf courses and planned communities, uses the opt -out program,
and incorporates language regarding the six month phase -in period into the
ordinance.
City Attorney Hunt received confirmation from Council to make the modifications
and bring the item back to Council for first reading.
Council Member Daigle expressed support for Council Member Selich's proposal
which targets the issue of noise.
The amended motion failed by the following roll call vote:
Ayes: Mayor Pro Tern Gardner, Mayor Henn, Council Member Curry
Noes: Council Member Hill, Council Member Rosansky, Council Member Selicb,
Council Member Daigle
Council Member Hill stated that he supports limiting leaf blowers, but believed the
proposal is too complex.
Motion by Council Member Hill, seconded by Council Member Daiale to
bring back an ordinance amending Newport Beach Municipal Code Title 6, Chapter
6.04 (Garbage, Refuse and Cuttings), by revising Section 6.04.055 to only allow for
the use of certified leaf blowers.
Mayor Henn indicated that he will not be supporting the motion since it only deals
with noise issues and not the other secondary effects. Council Member Curry
believed that Council has worked hard tonight to come up with something that is
close to workable.
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Council Member Daigle agreed and withdrew her second to the motion.
The motion died for lack of a second.
Motion by Council Member Hill, seconded by Council Member Curry to
bring back an ordinance amending Newport Beach Municipal Code Title 6, Chapter
6.04 (Garbage, Refuse and Cuttings), by revising Section 6.04.055 to incorporate a
ban on gas- powered leaf blowers, add language that clarifies the maintenance of golf
courses and applicability in planned communities, use the opt -out program, and
incorporate language regarding the six month phase -in period.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Mayor Pro Tern Gardner, Mayor Henn, Council Member
Curry
Noes: Council Member Rosansky, Council Member Selich, Council Member Daigle
14. CONTRACTING OUT OF PARKING METERS AND METER
ENFORCEMENT; APPROVAL OF CENTRAL PARKING SYSTEM, INC.
AGREEMENT. [381100 -2011]
City Manager Kiff noted that this item was discussed during today's Study Session
and that a number of issues were brought up relative to the contract and process.
Deputy ,7ity Attorney Torres noted that revised Exhibits A and B have been
distributed and that Central Parking System has agreed to the changes. He
highlighted the addition of an adjustment if there is an increase or decrease in either
the revenue or number of meters used, but noted that this would require a
renegotiating relative to pro rata reductions. He also discussed the changes relative
to the parking meters reverting back to or being vested with the City in the event of
a bankruptcy. The City would still pay the amortized fee left on the meters or the
new consultant would pay on the City's behalf. He highlighted the amendment
relative to equipment payments and the date change, and noted that footnote 2 has
been added and only applies to pay -by -cell transactions. Administrative Services
Director McCraner noted that the merchant fees will be net, and reported that the
City is expecting a 50 % -70 % increase in revenue due to patrons being able to use
credit cards to pay meter fees. She believed that the merchant fee is minimal
compared to the potential benefit of increased revenue. Jerry Skillett, Central
Parking System Vice President, indicated that their fee is between 1.85% and 2 %.
In response to Council Member Rosansky's questions, Deputy City Attorney Torres
indicated that the agreement contemplated bankruptcy and allows the City to
terminate the agreement and still retain. it's interest in the meters in the event of a
bankruptcy. Mayor Henn believed that the equipment should be titled to the City at
the beginning of the contract, but give the vendor a collateral interest in it until the
contract is fully paid. City Attorney Hunt believed that the original approach
recommended by staff would not be deemed a "preference" under the Bankruptcy
Act. He stated that this can be handled in the manner addressed in the amendment.
Council Member Rosansky suggested including the merchant fee percentage or a
percentage range in the contract. He noted that this is more complex than anything
else the City has privatized.
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Mr. Skillett reported that the City would be getting the merchant fee at their cost
which varies. He asked that the variables be included if it is necessary to
write something into the contract. City Manager Kiff recommended using language
that indicates that the credit card processing fee is at cost and that the current cost
at the date of this contract is 1.8 or 2 %. Administrative Services Director McCraner
noted that the City Manager's suggestion can be audited quarterly or annually.
Council Member Rosansky expressed his desire to see some type of chart that shows
what the City would be receiving today and in the future.
Council Member Curry agreed that places that provide payment by credit card
realize an increase in revenue and noted that this is a convenience for visitors,
residents, and shoppers to the City.
In response to Council questions, Deputy City Attorney Tones clarified that the
contract is term focused, not year focused. Regarding actual costs for the equipment,
installation, finance charges, warranty costs, salaries, profit, etc., it was confirmed
that documentation will be provided to the City. Administrative Services Director
McCraner indicated that credit card deposits will be made directly to the City's bank
account, so the City will see daily and monthly reports on reconciliations.
Administrative Services Director McCraner utilized a PowerPoint presentation to
highlight cost scenarios and display single and multi -space parking meters. She
noted that, in lieu of a CPI adjustment, Central Parking System will continue to look
for improvements that will increase revenue opportunities. She reported that staff
will bring back a list of parking meter locations and can bring in examples of actual
parking meters at that time. Robert Kamper, Director of Municipal Operations,
indicated that there are no State standards relative to color of meters.
Motion by Council Member Curry, seconded by Mayor Pro Tern Gardner to
a) authorize the Mayor and City Clerk to execute the amended 7 -year contract with
Central Parking System, Inc. to replace old meter infrastructure and manage and
maintain all parking meter operations and enforcement; and b) direct the City
Manager to amend Position Control by 6.72 FTEs.
Jim Mosher expressed confusion relative to the $$805,000 payment in Exhibit B.
Mayor Henn believed that it meant if adequate meter revenue exists.
Administrative Services Director McCraner confirmed Mayor Henn's interpretation
and added that it is over the term of the contract.
Dan Purcell believed that business proposals like these need some type of pro forma
spreadsheet in order to see how the numbers will change over time. He also
expressed concern over security when using the pay -by -phone service.
The motion carried by the fallowing roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Gardner,
Mayor Henn, Council Member Selich, Council Member Curry, Council Member
Daigle
XVIII. MOTION FOR RECONSIDERATION - None
XIX. ADJOURNMENT - 10:08 p.m
The agenda for the Regular Meeting was posted on March 17, 2011, at 3:25 p.m on
Volume 60 - Page 100
City of Newport Beach
City Council Minutes
March 22, 2011
the City Hall Bulletin Board located outside of the City of Newport Beach
Administration Building.
Recording Secretary
VI
Mayor
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City Clerk
Volume 60 - Page 101