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HomeMy WebLinkAbout11/12/2013 - Regular MeetingCity Council Minutes Regular Meeting November 12, 2013 — 7:00 p.m. I. STUDY SESSION - 4:00 p.m. IL CLOSED SESSION - 5:35 %m. A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Diff, City Manager and Terri Cassidy, Deputy City Manager; Negotiators Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (_ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (NBEI.); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Association (NBPTEA); and Part -Time Employees Association of Newport Beach (PTEANB). B. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6) Agency Designated Representatives: Council Member Michael F. Henn Unrepresented Employee: Aaron C. Harp, City Attorney III. RECESS IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle VI. CLOSED SESSION REPORT City Attorney Harp announced that there were no reportable actions taken. VII. PLEDGE OF ALLEGIANCE -Mayor Pro Tem Hill VIII. INVOCATION -Mayor Curry Volume 61 - Page 342 City of Newport Beach City Council Minutes November 12, 2013 Mayor Curry recognized the attendance of and thanked Girl Scout Troop 2917. IX. PRESENTATIONS Presentation of Plaque to Outgoing City Arts Commissioner Mayor Curry presented outgoing City Arts Commissioner Carole Boller with a plaque in acknowledgement and appreciation for her service to the City. Ms. Boller expressed her appreciation to the City and Council for the opportunity to serve. Presentation to the City of HEAL Cities Certificate Scott Kelly, Kaiser Permanente Orange County, presented a plaque to Mayor Curry in recognition to the City of Newport Beach for being an active HEAL (Healthy Eating Active Living) City and provided information about the HEAL campaign. Deputy City Manager/Human Resources Director Cassidy introduced the City's HEAL Committee and thanked Council for adopting a Resolution in support of HEAL. She noted the City's commitment to the HEAL campaign. Mayor Curry commented positively on the program and thanked Mr. Kelly for the presentation. X. NOTICE TO THE PUBLIC XI. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) Council Member Daigle reported attending a Homeowner's Association meeting in the Bluffs about the possible stadium at Corona del Mar High School. She stated that Council Member Petros is a Traffic Engineer and well -versed in CEQA requirements. Council Member Henn reported attending the Central Newport Beach Community Association (CNBCA) annual meeting where a presentation was provided regarding the City's residential trash outsourcing. He commented on the number of positive things happening on the Peninsula. He announced that the Balboa Village Advisory Committee (BVAC) will meet on November 13, 2013, at 4:00 p.m. to discuss the final report from the Urban Land Institute Technical Advisory Panel. Additionally, he announced that the Finance Committee will meet on November 18, 2013, at 4:00 p.m. in Conference Room 2E and invited members of the public to attend. He reported that the Committee will discuss PERS valuations, a quarterly financial review of Quarters 4, 2013 and Quarter 1 of fiscal 2014, and the budget process strategy and roadmap for the upcoming budget cycle. Council Member Gardner reported that the Harbor Commission will be meeting on November 13, 2013, at the old Council Chambers since the Coastal Commission will be meeting in the Civic Center Council Chambers. She added that the Coastal Commission meeting will focus on the Poseidon Desalination Project and that hundreds of people are expected to attend. Council Member Petros reported that he presented a proclamation, on the City's behalf, proclaiming November 6th as Healthy Eating Day at an event hosted by the American Heart Association at the Offices of Newmeyer and Dillion. He reported that he is a heart attack survivor and commented positively on the efforts of the firm towards heart health, stating that he is back on the mend and has recently entered an Iron Man Triathlon event. Additionally, he reported that he will be working with staff to ensure that the City's concerns are addressed as they relate to the stadium at Corona del Mar High School and the Notice of Preparation (NOP) as it relates to the CEQA document. He added that he Volume 61 - Page 343 City of Newport Beach City Council Minutes November 12, 2013 will also ensure that there is a full traffic impact analysis and a complete parking assessment. Mayor Pro Tem Hill reported representing the Mayor at Mariners School for Arbor Day, along with Principal Pamela Coughlin and Park and Tree Superintendent Dan Sereno. He reported meeting with the third grade class and presented a proclamation declaring October 23 as Arbor Day. He added that Lynnette Short, California Department of Forestry and Fire Protection employee, presented the Tree City Award to the City and the Year Growth Award for the City's street trees. Mayor Curry reported participating in the Mayor's Forum in Yeosu, South Korea, a Newport Beach Sister City. He reported meeting many Mayors, including the Mayor of Kabul, Afghanistan. Additionally, he reported participating in the California Economics Mayors Summit in Los Angeles and hosted Former Mayors at the Newport Beach City Hall. Mayor Curry noted participating in the Veterans Day program at the Orange County Fairgrounds, along with the U.S. Postal Service which presented a new Medal of Honor stamp. He announced that the City Clerk's Office will be accepting new, unwrapped toys for children of troops, DVDs for troops, and gift cards for troop families through Operation Christmas. XII. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher noted that Item 7 (Professional Services Agreement with GMU Geotechnical, Inc. for Marina Park Specialty Inspection and Material Testing Services) and Item 8 (Information Technology Consulting Services - Amendment No. One) were on a previous agenda and asked why they were pulled from the last agenda. Regarding Item 4 (Woody's Wharf Use Permit Appeal - 2318 Newport Boulevard - Use permit No. UP2011-010 - Variance No. VA2013-006 (PA2011-055)), he noted that Council will be making a finding that the CEQA exemption used by the Planning Commission for approving a number of the elements of the project was inappropriate and wondered if by doing so, Council is invalidating the Planning Commission's action independent of whether Mr. Diamond is successful with his procedural challenges. Regarding Item 12 (Professional Services Agreement with Civil Works Engineers for Dover Drive and Westcliff Drive Street Rehabilitation Project), he stated that staff is planning possible changes to the medians and landscaping and wondered if public input will be sought. XIII. CONSENT CALENDAR A READING OF MINUTES AND ORDINANCES 1. MINUTES FOR THE OCTOBER 22, 2013 SPECIAL MEETING AND REGULAR MEETING. [100-2013] Waive reading of subject minutes, approve as amended, and order filed. Mayor Curry abstained on this item. 2. READING OF ORDINANCES. Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. B. RESOLUTIONS FOR ADOPTION 3. APPROVAL OF MEASURE M2 EXPENDITURE REPORT. [100-2014 Adopt Resolution No. 2013-74, A Resolution of the City Council of the City of Newport Beach Concerning the Measure M2 Expenditure Report for the City of Newport Beach, approving the M2 Expenditure report, substantially to form, subject to technical revisions in conformance with Orange County Transportation Authority (OCTA) guidelines. 4. WOODY'S WHARF USE PERMIT APPEAL - 2318 NEWPORT BOULEVARD - USE Volume 61 - Page 344 City of Newport Beach City Council Minutes November 12, 2013 PERMIT NO. UP2011-010 - VARIANCE NO. VA2013-006 (PA2011-055). [100-20131 Adopt Resolution No. 2013.75, A Resolution of the City Council of the City of Newport Beach Upholding in Part and Reversing in Part the Planning Commission's Decision Regarding Conditional Use Permit No. UP2011-010 by Approving a Change to the Opening Hour and the Valet Parking Plan and Parking Waiver but Denying Extension of the Closing Hour of the Outdoor Patio Area, Patron Dancing, and a Change to the Interior and Outdoor Patio Floor Plan; Approving Variance VA2013.006 to Allow an Encroachment into the Bulkhead Setback; and Superseding Use Permit No. 3065 and Outdoor Dining Permit No. 1 for an Existing Eating and Drinking Establishment Located at 2318 Newport Boulevard (PA2011- 055), related to Variance No. VA2013-006 and Use Permit No. UP2011-010 which: 1. Finds the approved elements of this project application exempt from the California Environmental Quality Act pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, but that the denied elements contain potentially significant impacts inappropriate for this CEQA exemption; 2. Upholds the Planning Commission approval of Variance VA2013.006 to allow the patio cover to encroach into the bulkhead setback area; and 3. Modifies the Planning Commission approval of Use Permit No. UP2011-010 to: a. Approve extending the opening hour of the restaurant and outdoor patio area from 11:00 a.m. to 10:00 a.m., daily; b. Approve limiting the provision of valet parking to Friday and Saturday nights and holidays from 6:00 p.m, to closing; C. Approve waiver of six (6) parking spaces of the required forty (40) parking spaces when valet service is not use; d. Deny extending the closing hour of the outdoor patio area from 11:00 p.m. to 2:00 a.m. on Friday and Saturday nights, and thereby retains the nightly 11:00 p.m. closing hour of the outdoor patio area; e. Deny allowing patron dancing; f. Deny removing tables and chairs within the restaurant and outdoor patio area; and g. Supersede Use Permit No. 3065, 3065 (amended) and Outdoor Dining Permit No. 1. Mayor Pro Tem Hill recused himself since he owns property within 500 feet of the subject property, Council Member Daigle abstained on this item, and Council Member Selich voted no on, this item. 5. LOCAL COASTAL PROGRAM GRANT PROPOSAL AUTHORIZATION (C-5660). 1381100-20131 a) Find that this authorization is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061.b.3 of the CEQA Guidelines; and b) adopt Resolution No. 2013-83, A Resolution of the City Council of the City of Newport Beach Authorizing Submittal of a Grant Proposal to, and Authority to Enter into a Contract with, the California Coastal Commission and Designating an Authorized Representative. C. ORDINANCE EOR ADOPTION 6. ADOPTION OF ORDINANCE NO. 2013-21 APPROVING CODE AMENDMENT NO. CA2013-005 AMENDING NEWPORT BEACH MUNICIPAL CODE SECTION 20.90.060 (RESIDENTIAL EQUESTRIAN DISTRICT: SP -7 (REQ)) REMOVING ANNUAL USE PERMITS FOR THE NONCOMMERCIAL KEEPING OF THREE TO SIX HORSES (PA2013-114). [100-20131 Conduct second reading and adopt Ordinance No. 2013-21, An Ordinance of the City Council of the City of Newport Beach Adopting Zoning Code Amendment No. CA2013-005 Amending Section 20.90.60 (Residential Equestrian District: SP -7 (REQ)) Removing Annual Use Permits for the Beeping of Three to Six Horses in the REQ (Residential Equestrian) District of the SP -7 (Santa Ana Heights Specific Plan) Zoning District (PA2013-114), approving Code Amendment No. CA2013-005. Volume 61 - Page 345 City of Newport Beach City Council Minutes November 12, 2013 D. CONTRACTS AND AGREEMENTS PROFESSIONAL SERVICES AGREEMENT WITH GMU GEOTECHNICAL, INC. FOR MARINA PARA SPECIALTY INSPECTION AND MATERIAL TESTING SERVICES (C-3897). 1381100-20131 Approve a Professional Services Agreement with GMU Geotechnical, Inc. of Rancho Santa Margarita, California, for the specialty inspection and material testing services needed for the Marina Park Project at a cost not to exceed $206,487.00, and authorize the Mayor and City Clerk to execute the Agreement. Continued from the 10/22/13 City Council meeting. 8. INFORMATION TECHNOLOGY CONSULTING SERVICES - AMENDMENT NO. ONE (C-5267). [381100-20131 Approve the amendment of the contract. Continued from the 10/22/13 City Council meeting. 9. CENTRAL LIBRARY HVAC SYSTEM UPGRADES - NOTICE OF COMPLETION AND ACCEPTANCE OF CONTRACT NO. 5277. [381100-20131 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 65 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 acceptance by the City Council, 10. BALBOA BOULEVARD LANDSCAPING - AWARD CONTRACT NO. 4842. [381100- 20131 a) Approve the project drawings and specifications; b) declare the bids submitted by Pima Corporation and Environmental Construction, Inc. as non-responsive; c) award Contract No. 4842 to GMC Engineering, Inc. (GMC) for the total bid price of $2,247,357.75, and authorize the Mayor and City Clerk to execute the contract; d) establish a contingency of $224,642.25 (approximately 10 percent) to cover the cost of unforeseen work; and e) approve Budget Amendment No. 14BA-019 appropriating $590,000.00 from the unappropriated General Fund balance to Account No. 7013-C2002063 (Balboa Boulevard Landscaping). Mayor Pro Tem Hill recused himself on this item since he owns property within 500 feet of the subject property. 11. BAYSIDE DRIVE AND AREA STREETS PAVEMENT REHABILITATION - AWARD CONTRACT NO. 5212. [381100-20131 a) Approve the project drawings and specifications; b) award Contract No. 5212 to All American Asphalt for the total bid price of $1,207,207.00, and authorize the Mayor and City Clerk to execute the contract; and c) establish an amount of $120,000 (10%) to cover the cost of unforeseen work not included in the original contract. Council Members Gardner and Selich recused themselves on this item since they own property within 500 feet of the subject property. 12. PROFESSIONAL SERVICES AGREEMENT WITH CIVIL WORKS ENGINEERS FOR DOVER DRIVE AND WESTCLIFF DRIVE STREET REHABILITATION PROJECT (C-5583). 1381100-20131 a) Approve a Professional Services Agreement with Civil Works Engineers of Costa Mesa, California, for engineering services at a not -to -exceed fee of $220,360.00, and authorize the Mayor and City Clerk to execute the Agreement; and b) approve Budget Amendment No. 14BA-020 recognizing $633,000 in contributions from Orange County Sanitation District (Revenue Account No. 250-4858) and appropriating $50,000 to the Dover Drive and Westcliff Drive Street Rehabilitation project account (7251- $2002018). Volume 61 - Page 346 City of Newport Beach City Council Minutes November 12, 2013 13. PROFESSIONAL SERVICES AGREEMENT FOR ONGOING COMMISSIONING SERVICES FOR CIVIC CENTER WITH GLUMAC (C-4527). [381100-20131 a) Approve the Professional Services Agreement with Glumac, and authorize the Mayor and the City Clerk to execute the Agreement; and b) approve Budget Amendment No. 14BA-021 appropriating $40,000 from the unappropriated General Fund balance to M&O Account No. 3140-8244. E. MISCELLANEOUS 14. PLANNING COMMISSION AGENDA FOR NOVEMBER 7, 2013. [100-20131 Receive and file. 15. APPOINTMENT OF DISTRICT 1 ALTERNATE MEMBER TO THE AVIATION COMMITTEE. [100-20131 a) Waive the portion of City Council Policy A-2 (Board, Commission, and Committee Appointments), which requires an appointee to be a qualified elector of the City; and b) confirm Council Member Mike Henn's nomination of Donald Hecht as the District 1 Alternate Member to the Aviation Committee. 16. ACCEPT 2011 HOMELAND SECURITY GRANT PROGRAM FUNDS FOR VOLUNTEER EMERGENCY MANAGEMENT ID BADGE SYSTEM. [100-20131 Approve Budget Amendment No. 14BA-018 recognizing a $12,600.00 grant from Homeland Security in Revenue Account No. 2335-4932 and appropriating $12,600.00 to the Fire Department Special Department Supplies NOC account, 2335-8200. Motion by Mayor Pro Tem Hill, seconded by Council Member Selich to approve the Consent Calendar, except for the item removed (17); noting the abstentions by Mayor Curry on Item 1 and by Council Member Daigle on Item 4; the no vote by Council Member Selich on Item 4; and the recusals by Mayor Pro Tem Hill on Item 4, Mayor Pro Tem Hill on Item 10, and Council Members Gardner and Selich on Item 11. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle XIV. ITEMS REMOVED FROM THE CONSENT CALENDAR 17. VISIT NEWPORT BEACH, INC. (VNB) ANNUAL MARKETING PLAN, FINANCIAL STATEMENTS AND BUDGET AND THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (NBTBID) ANNUAL REPORT (C-4961). [381100-20131 Council Member Gardner believed that the Visit Newport Beach (VNB) Marketing Plan is a calendar, not a plan, and that there is nothing in the plan that helps Council evaluate the impact of what VNB is doing. She suggested including a request that within three months, VNB will return with goals by which to measure itself to help Council evaluate it. Council Member Henn noted that there is a summary of goals for the upcoming fiscal year at the beginning of the presentation. Mayor Pro Tem Hill commented on the goal of increasing occupancy rates. Motion by Council Member Gardner, seconded by Mayor Pro Tem Hill to a) authorize a one-time waiver of the timelines provided in Section 6 of the Agreement; b) review VNB's Volume 61 - Page 347 City of Newport Beach City Council Minutes November 12, 2013 Performance Standards/Marketing Goals Report; c) review VNB's Annual Marketing Plan; d) review, approve and/or modify VNB's FY 2013-2014 budget; e) review VNB's FY 2011.2012 and FY 2012-2013 Audited Financial Statements; and f) review and approve the FY 2013.2014 NBTBID Annual Report. Council Member Daigle agreed with the need to have measurements and questioned that more than 33% of revenue is coming from The Irvine Company (TIC) hotels (The Island Hotel and the Pelican Hill Hotel). She wondered how to know whether those revenues are derived from TIC or VNB efforts and how to measure it. Gary Sherwin, President and CEO of Visit Newport Beach, commented on the development of the Marketing Plan. He reported that funding from Transient Occupancy Tax (TOT) goes toward supporting the overall marketing of the City and leisure marketing, but does not include group marketing. Group marketing is done through the Tourism Business Improvement District (TBID) which depends on VNB to market the City to raise the profile and the TBID has a sales force that makes the deals and books the room nights. He added that bath of the programs are complimentary and dependent of each other. He stated that, there are many elements in the document that include productivity standards, including a measurement of tactics. In response to Council Member Gardner's questions, Mr. Sherwin stated that his firm is happy to meet with City staff and the hospitality community to establish performance metrics, but added that some things can be measured but others cannot. He reported that VNB tries to measure what it can and assigns metrics based on the best practices in the hospitality community. Mr. Sherwin offered to return to the Marketing Committee, review the goals and return to City staff for their input. Council Member Henn noted that the performance metrics in the document are effort -level oriented rather than result -oriented. He suggested integrating some result -oriented metrics into the response. In response to Council Member Daigle's question regarding ways to identify Return on Investments (ROI), Mr. Sherwin reported that the best way to do that is to assign a value as it pertains to group business (meetings and conventions). Jim Mosher commented positively on VNB supplying reports and referenced the City's obligations regarding reviewing, approving, and modifying the fiscal year budget. He questioned how the budget can be approved, referencing an audited expenses report and discrepancies. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle XV. PUBLIC COMMENTS ON NON -AGENDA ITEMS Stephanie Barger expressed her appreciation for the dog park and suggested extending the hours due to daylight savings for those that work past 5:00 p.m. Laura Curran commented on the City building a new pocket park in Corona del Mar, thanked Council Member Selich for his efforts, and reported that the project is entering the planning phase. She suggested that the City showcase California native plants and asked that Council reconsider the matter in order to showcase the State's natural beauty. George Schroeder invited the public to join a community forum, on November 13, 2013, at 5:30 p.m. in Volume 61 - Page 348 City of Newport Beach City Council Minutes November 12, 2013 the Community Room where the guest speaker will be Newport Beach Police Chief Johnson who will speak about community safety in the City. Denys Oberman inquired regarding contingency funds for the Civic Center Project, noting that Council Member Petros had previously requested an accounting of the project and that the public would also like the opportunity to review it. Additionally, she requested a status update of the old City Hall site and its reuse. XVI. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Daigle reported that Vector Control is busy with Lower Big Canyon as malaria mosquitoes are in the area. She stated that Vector Control is spraying in the area and has made a proposal to try to eradicate it. Additionally, she reported attending a Southern California Association of Governments (SCAG) meeting and added that Costa Mesa Council Member Genis is interested in serving on SCAG when Council Member Daigle's term is up. She reported that the focus at the meeting was climate change and commented on the State's efforts and policies. She commented on the City's Affordable Housing Task Force and deleting the inclusionary housing zoning, and asked about the status of the matter. Community Development Director Brandt reported that the Housing Element was approved with the deletion of the program and that staff has a follow-up action to amend the Newport Beach Municipal Code to remove the Affordable Housing inclusionary program from the document which is scheduled for the Citv Council meeting of November 26, 2013. Council Member Selich reported on a recent meeting of the Land Use Element Amendment Advisory Committee where it reviewed policies in the General Plan and discussion was continued to the next meeting of December 2, 2013. Council Member Gardner referenced Council Member Daigle's comments regarding mosquitoes and added that the area has been sedimented and has approximately 1-2 inches of water. She reported that there is nothing that Vector Control can do except spray and that they are proposing to fill in the area to divert the runoff around it directly into the bay. Additionally, the plan would also alleviate a selenium problem which is harmful to birds and fish. Council Member Petros reported hosting an Open House for the Bicycle Master Plan Oversight Committee and thanked those who participated. XVII. PUBLIC HEARINGS 18. APPROVAL OF MASTER FEE SCHEDULE (COST OF SERVICES PORTION) AND CHANGE IN SUBSIDIES. [100-2013) City Attorney Harp reported that this is a situation where the entire City Council potentially has a conflict of interest, adding that fees have never been charged relative to bringing up matters for review. The process has never been documented in the City's Municipal Code and what is being proposed is to document that Council Members, Commission Members, Board Members or Committee Members do not pay fees when they call up matters in the public interest from a lower body or lower official_ This would only apply to matters within the purview of the specific group as part of their official duties. City Attorney Harp stated that, because these could impact Council. Members, the entire Council has a potential conflict of interest. He added that the Fair Political Practices Commission (FPPC) provides that, when a majority or quorum of Council Members cannot be obtained, the Code provides for a "game of chance" to see which Council Members will consider the item. He referenced a set of black and red cards which Council Members will draw Volume 61- Page 349 City of Newport Beach City Council Minutes November 12, 2013 and indicated that the Council Members who receive black cards will consider the item and those who draw red cards will recuse themselves. As a result of the game -o£ -chance -based selection process, Mayor Pro Tem Hill, Council Member Daigle, and Council Member Henn recused themselves from the matter and departed the Chambers. Mayor Curry opened the public hearing. Jim Mosher commented on the two separate ordinances being considered and believed that the Council Members would not have a conflict on the second Ordinance since it sets fees for preferential parking permits to $10, but was subsequently changed in the Master Fee Schedule to $16. He asked if the City is planning to refund residents for the extra money that has been charged. Hearing no further testimony, Mayor Curry closed the public hearing. Motion by Council Member Selich, seconded by Council Member Petros to a) introduce Ordinance No. 2013-18, An Ordinance of the City Council of the City of Newport Beach Amending Section 3.36.030 of the Newport Beach Municipal Code, and pass to second reading on November 26, 2013; and b) conduct second reading and adopt Ordinance No. 2013-19, An Ordinance of the City Council of the City of Newport Beach Amending Newport Beach Municipal Code Sections 5.04.210 and 12.68.040. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich Recuse: Mayor Pro Tem Hill, Council Memeber Henn, Council Member Daigle 19. ORDINANCE NO. 2013-22 ESTABLISHING A PENALTY AMNESTY PROGRAM TO FORGIVE BUSINESSES THAT PAY CERTAIN DELINQUENT ASSESSMENTS FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FROM LIABILITY FOR PENALTIES. [100-20131 City Manager Kiff reported that Council provided notice for this item at its last meeting and noted a correction to Page 3 of the staff report where a sentence was omitted. Motion by Council Member Selich, seconded by Council Member Henn to introduce Ordinance No. 2013-22, An Ordinance of the City Council of the City of Newport Beach, California, Establishing a Penalty Amnesty Program to Forgive Businesses that Pay Certain Delinquent Assessments for the Corona. del Mar Business Improvement District from Liability for Penalties, and pass to second reading on November 26, 2013. Mayor Curry opened the public hearing. Sandy Giltinan voiced support for the amnesty but questioned its need. He believed that there is a lack of communication between the Business Improvement District and small business owners in Corona del Mar, adding that he has written them on several occasions without response. At Council Member Gardner's request, Mr. Giltinan provided her with a business card. Hearing no further testimony, Mayor Curry closed the public hearing. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Volume 61 - Page 350 City of Newport Beach City Council Minutes November 12, 2013 Council Member Selich, Council Member Henn, Council Member Daigle 20. RESOLUTION ESTABLISHING UNDERGROUND UTILITY DISTRICT NO. 22 - BALBOA BOULEVARD BETWEEN WEST COAST HIGHWAY AND 22ND STREET. [100-20181 Mayor Pro Tem Hill recused himself from this item since he owns property within 500 feet of the subject property. Public Works Director Webb utilized a PowerPoint presentation to provide a brief history, including previous considerations by and directions from Council, Utility Underground District (IIUD) areas, Rule 20A Funds for undergrounding utilities, and Municipal Code requirements regarding residential and business service connections. He addressed UUD No. 22 design and boundaries, and possible design modifications as the project moves forward. He also presented photos of existing conditions, details of a cost analysis, recommendations, and a tentative schedule. In response to Council Member Petros' questions regarding the notion of a five-year mortgaging for the item and its effect on two other Rule 20A projects, Public Works Director Webb reported that the two other projects will be delayed because they will be using future funds. Council Member Petros noted the need to build up reserve funds. City Manager Kiff reported that staff continues to look for the ability to buy the funds at a discounted rate from other cities and will continue to do so. Council Member Peirce stated that, with Council Member Henn`s leadership, this and the Balboa Boulevard landscaping efforts, are signature efforts to revitalize the west side. He added that, with the help of the advisory panel, there will be a remarkable change on the Peninsula. Council. Member Henn commented positively on the efforts being made on the Peninsula, noting that there are three projects related to it on the agenda tonight. Council Member Selich commented on the amount of investment being made along Balboa Boulevard. Mayor Curry opened the public hearing, Paul DeRidder, representing neighbors and friends on River Avenue, reported sending a letter of interest to Public Works Director Webb requesting to incorporate River Avenue through Balboa Boulevard in the project. Public Works Director Webb stated that staff looked into the matter, but does not believe it qualifies for Rule 20A Funds as it does not meet the criteria. He added that it may be suitable for Rule 20B Funds and that he will be happy to follow-up with Mr. DeRidder about the possibility of establishing another district. Mr. DeRidder commented on the possibility to save time and money by implementing the projects at the same time and using some of the volume of work. George Schroeder thanked Council and staff for the landscaping improvements that will occur with the undergrounding. He reported that this stretch of Balboa Boulevard is in worse shape than what Council had in the 1970s and 1980s because they removed parking. Hearing no further testimony, Mayor Curry closed the public hearing, Motion by Council Member Henn, seconded by Council Member Selich to a) adopt Resolution No. 2013-82, A Resolution of the City Council of the City of Newport Beach Establishing Volume 61 - Page 351 City of Newport Beach City Council Minutes November 12, 2013 Underground Utilities District No. 22 (Balboa Boulevard Between West Coast Highway and 22nd Street) and Ordering the Removal of Poles, Overhead Wires, and Associated Overhead Structures within Underground Utility District No. 22; and b) direct staff to initiate project implementation. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Recuse: Mayor Pro Tem Hill 21. LIDO VILLAS (PA2012-146) - 3303 AND 3355 VIA LIDO - GENERAL PLAN AMENDMENT NO. GP2012-005, COASTAL LAND USE PLAN AMENDMENT NO. LC2013-001, CODE AMENDMENT NO. CA2012-008, SITE DEVELOPMENT REVIEW NO. SD2013-001, TRACT MAP NO. NT2013-001 (TENTATIVE TRACT MAP NO. 17555), AND MITIGATED NEGATIVE DECLARATION NO. ND2013-001. [100-2013] Council Member Henn recused himself from this item due to the potential for a conflict of interest arising from a business relationship he has with a business in Via Lido Plaza. Community Development Director Brandt reported that this is a significant redevelopment project in Lido Village. She addressed location, existing conditions, site plan, review of the project by the Planning Commission; and discretionary actions required by Council at this time, and noted that Assistant Planner Nova is present to answer questions. Council Member Gardner asked how the project meets the design guidelines. Mayor Pro Tem Hill stated that design is different in everyone's eyes and that this is a different design approach than the proposed hotel at the old City Hall site and added that this project represents a contemporary rendition of a coastal design. He reported that it is appealing to a different age group. Council Member Gardner believed that it may be a coastal design, but it does not fit the City's design guidelines. Mayor Curry opened the public hearing. Denys Oberman acknowledged that there are different perspectives regarding design and that there are many community members that feel this type of design is appropriate and attractive in the coastal zone. She stated that it is the right direction and is a good complement to the community and hotel. Hearing no further testimony, Mayor Curry closed the public hearing. Council Member Daigle expressed her appreciation to the developer for investing in the City. Council Member Gardner commented on the possibility of making Via Oporto a pedestrian walkway. Mayor Pro Tem Hill reported that the original Master Plan called for a river walk, but was determined to be unfeasible, so the developer was told not to proceed with it. He added that the opportunity of making Via Oporto a pedestrian walkway has not been abandoned. Council Member Gardner commented on green streets and calling for continuous curbs around planters. She questioned if that is always the best and asked that consideration be given to letting rain water fall into it to retain water. Additionally, she commented on idling trucks and suggested Volume 61 - Page 352 City of Newport Beach City Council Minutes November 12, 2013 they be turned off if they are not moving Motion by Mayor Pro Tern Hill, seconded by Mayor Curry to a) adopt Resolution No. 2013- 76, A Resolution of the City Council of the City of Newport Beach Adopting Mitigated Negative Declaration No. ND2013-001 for the Lido Villas Project Located at 3303 and 3355 Via Lido (PA2012-146), Adopting the Lido Villas Mitigated Negative Declaration No. ND2013-001 (SCH No. 2013071050) Including the Mitigation Monitoring and ,Reporting Program Pursuant to the California Environmental Quality Act, b) adopt Resolution No. 2013-77, A Resolution of the City Council of the City of Newport Beach Approving General Plan Amendment No. GP2012-005 and Coastal Land Use Plan Amendment No. LC2013.001 for the Lido Villas Project Located at 3303 and 3355 Via Lido (PA2012.146); c) introduce Ordinance No. 2013-23, An Ordinance of the City Council of the City of Newport Beach Approving Zoning Code Amendment No. CA2012.008 for the Lido Villas Project Located at 3303 and 3355 Via Lida (PA2012.146), establishing the Lido Villas Planned Community, and pass to second reading on November 26, 2013; and d) adopt Resolution No. 2013-78, A Resolution of the City Council of the City of Newport Beach Approving Site Development Review No. SD2013-001 and Tentative Tract Map No. NT2013-001 for the Lido Villas Project Located at 3303 and 3355 Via Lido (PA2012.146). The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Daigle Recuse: Council Member Henn 22. ADOPTION OF THE 2013 CALIFORNIA BUILDING CODES AND OTHER RELATED CODES. [100-20131 City Manager Mff introduced the matter and stated that a presentation would be made if desired Council Member Petros pointed out that these include green Building Codes and commented positively on that type of design and planning. Mayor Curry opened the public hearing. There being no public testimony, Mayor Curry closed the public hearing. Mayor Pro Tem Hill expressed concerns regarding additions and alterations, noting that it is not clear whether new water efficient fixtures would be limited to just the alterations or the total house. Building Manager/Chief Building Official Jurjis reported that the item is mandated by the State and that staff is codifying and including it in the Municipal Code. He added that if there is a permit issued to an improvement for the house, all fixtures would need to be in compliance, but changing one fixture will not trigger changes to the entire house. Motion by Council Member Petros, seconded by Council Member Gardner to a) adopt Resolution No. 2013-79, A Resolution of the City Council of the City of Newport Beach, California Setting Forth Findings Based on Local Conditions within the City Of Newport Beach Which Make Certain Modifications and Changes to the California Building Code, the California Residential Code, the California Electrical Code, the California Mechanical Code, and the California Plumbing Code as Reasonably Necessary; b) introduce Ordinance No. 201.3-24, An Ordinance of the City of Newport Beach Amending Title 15 of the Newport Beach Municipal Code to Adopt Amendments to Chapter 1 Division 77 of the 2013 California Building Code Designated as the Newport Beach Administrative Cade; to Adopt the 2012 International Property Maintenance Code; the 2013 California Historical Code; the 2013 California Existing Building Code; to Adopt with Local Amendments to the 2013 Edition of the California Building Code; the 2013 Edition of the California Volume 61- Page 353 City of Newport Beach City Council Minutes November 12, 2013 Residential Code; the 2013 California Electrical Code; the 2013 California Plumbing Code; the 2013 California Mechanical Code; the 2012 Uniform Swimming Pool, Spa and Hot Tub Code; the Excavation and Grading Code; the 2013 California Green Building Standards Code (Title 24 of the California Code of Regulations), and pass to a public hearing and second reading on November 26, 2013; and d) find Ordinance No. 2013-24 is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15061(b)(3) and 15060(c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle 23. PUBLIC HEARING REGARDING AN ORDINANCE OF THE CITY OF NEWPORT BEACH ADOPTING THE 2013 CALIFORNIA FIRE CODE (TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS), WITH LOCAL AMENDMENTS AND ADMINISTRATIVE PROVISIONS, INTO TITLE 9 OF THE NEWPORT BEACH MUNICIPAL CODE. [100-20131 City Manager Kiff introduced the matter and stated that a presentation would be made if desired Mayor Curry opened the public hearing. Jim Mosher commented on local revisions to the Code and addressed previous Council actions regarding amending the Fire Code relative to 'open burning' to include recreational fires, fireplaces, and fire pits, and added provisions regarding what could be burned in fire rings. However, this was inadvertently deleted when the previous Code was adopted. He believed that, if that is the only authority the City has to control the nuisance, the City may want to retain it. Mayor Curry closed the public hearing. Motion by Council Member Selich, seconded by Council Member Henn to a) adopt Resolution No. 2013-80, A Resolution of the City Council of the City of Newport Beach Setting Forth Findings Based on Local Conditions within the City of Newport Beach which Mahe Certain Modifications and Changes to the California Fire Code as Reasonably Necessary; b) introduce Ordinance No. 2013.25, An Ordinance of the City of Newport Beach Amending Title 9 of the Newport Beach Municipal Code to Adopt the 2013 California Fire Code (Title 24, Part 9 of the California Code of Regulations) with Local Amendments as the Newport Beach Fire Code, and conduct a first reading and pass to a public hearing and second reading on November 26, 201.3; and c) find Ordinance No. 2013.25 is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15061(b)(3) and 15060 (c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment; CEQA only applies to projects which have the potential for causing a significant effect on the environment; and it has no potential for resulting in physical change to the environment, directly or indirectly. Fire Assistant Chief Kitch noted that the City has the authority to regulate all fires with certain criteria and that in the 2012.International Fire Code, that language was removed, specifically relating to the objectionable odors portion as that was found to be subjective and not enforceable. Council Member Daigle commented on the amount of deliberation and discussion occurring when such amendments are considered. Volume 61- Page 354 City of Newport Beach City Council Minutes November 12, 2013 The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem hull, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle XVIIL CURRENT BUSINESS 24. ARALIA STREET PARKING ORDINANCE - SECOND READING. [100-20131 Council Member Daigle recused herself from this item since she awns property within 500 feet of the subject property. Public Works Director Webb addressed the proposed Ordinance, noting it covers Aralia Street from Aleppo to the end of the cul-de-sac. Council Member Gardner commented on the possibility of the school issuing occasional passes for parents so they are not ticketed. Council Member Petros indicated he will work with the school and district, noting there is ample opportunity to accommodate parking. Motion by Council Member Petros seconded by Mayor Pro Tem Hill to a) Conduct second reading and adopt Ordinance No. 2013-20, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 12.68.060 of the Newport Beach Municipal Code to Establish a Residential Parking Permit Program for Aralia Street, Establishing a Preferential Parking Zone for a One -Hour Parking Time Limit, 7:00 a.m. to 4:00 p.m. on School Days, Except by Permit; for Parking on Aralia Street; and b) direct staff to install signs on Aralia Street giving notice of such parking restrictions. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn Recuse: Council Member Daigle 25. NON-EXCLUSIVE COMMERCIAL SOLID WASTE COLLECTION FRANCHISE WITH G.O. RODRIGUEZ TRUCKING, INC., A'CALIFORNIA CORPORATION. [42/100-20131 Deputy Municipal Operations Director Pisani provided a staff report, noting that there are currently 32 franchise haulers in the City and that they are required to recycle at least 55% of the materials they collect. He addressed recommendations. Motion by Council Member Henn, seconded by Council Member Selich to a) adopt Resolution of Intention (Resolution No. 2013-81.), A Resolution of the City Council of the City of Neuport Beach Declaring its Intention to Conduct a Public Hearing to Consider the Granting of a Non -Exclusive Commercial Solid Waste Franchise to G.O. Rodriguez Trucking, Inc., a California Corporation, to conduct a public hearing on November 26, 2013 to consider the award of a non- exclusive commercial solid waste franchise to G.O. Rodriguez Trucking, Inc., a California Corporation; b) direct the City Clerk to publish Resolution No. 2013-81, within 15 days of its adoption; and c) introduce Ordinance No. 2013-26, An Ordinance of the City Council of the City of Newport Beach Granting a Non -Exclusive Commercial Solid Waste Franchise to G.O. Rodriguez Trucking, Inc., a, California Corporation, to Provide Solid Waste Collection Services upon the City Streets and Within the City of Newport Beach, granting a non-exclusive solid waste franchise to G.O. Rodriguez Trucking, Inc., a California corporation for a first reading. Waive further reading Volume 61 - Page 355 City of Newport Beach City Council Minutes November 12, 2013. and pass to second reading on November 26, 2013. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle 26. APPROVAL OF AGREEMENT FOR TREE MAINTENANCE SERVICES (C-8648). [381100- 20131 Deputy Municipal Operations Director Pisani provided a staff report, addressing the history of the matter, expiration of the current contract, issuance of a Request for Proposal (RFP), and scope of work required. He stated that two proposals were received in response to the RFP and addressed scoring, evaluation of the proposals, and results and review of references by staff. He stated that the lowest qualified bidder was found to be Great Scott Tree Service (GSTS). In response to Council Member Gardner's questions regarding the technical score, Deputy Municipal Operations Director Pisani clarified that it was not related to the quality of tree trimming, but on what was stated in the RFP regarding their listed experience. However, after review of GSTS' work, staff felt confident with their level of expertise. Council Member Petros commented on the inventory of trees and the current deficit, and asked what the allocation is for the efforts to plant trees. Deputy Municipal Operations Director Pisani reported that the RFP required that the vendor would need to be able to plant 800 trees per year and remove up to 300 trees per year. Patrick Mahoney, President of West Coast Arborists (WCA), thanked Council for allowing the company to serve the City for the last 20 years and requested that the City rebid the RFP. He noted that WCA has provided service to the City without raising the price in 20 years, with an excellent safety record. He addressed the pricing score and reported that there was no definition for work times on the specification sheet nor was there quantities listed. Additionally, they did not believe that palm trees were included nor was root trimming. He added that the contract will cost the City $300,000 more annually over what the City is currently paying WCA. Jim Mosher believed that Mr. Mahoney has raised interesting questions and asked if thought was given to in -sourcing the service. He reported that the City is paying for the cost of service plus a profit, and suggested going through the same exercise as the City did for the trash contract. Deputy Municipal Operations Director Pisani reported that the proposals were due on September 26, 2013, and that, from the time the bid was issued to the due date, WCA had no objections to any part of the RFP. He added that two proposals were received, seven firms attended the pre - proposal meeting and, after the bid due date, the Parks Superintendent called the other five attendees who indicated they could not compete. Additionally, he stated that GPS software was required, which those companies did not have. In response to Council Member Gardner's question regarding the City paying $300,000 more for the service, Deputy Municipal Operations Director Pisani reported that previous prices were based on 1993 prices. Municipals Operations Director Harmon noted the City will be paying $300,000 more for the GSTS contract; however, if the contract was awarded to WCA, it would be paying approximately $800,000 more. He reported working with Mr. Mahoney and that there were no questions from WCA prior to submission of their bid. The proposal from WCA was signed by Mr. Mahoney, indicating that he understood the terms of the proposal. He added that WCA has done a great job Volume 61 - Page 356 City of Newport Beach City Council Minutes November 12, 2013 in the City Mayor Curry stated that WCA has done a great service to the City and has performed its job well. GSTS has also done excellent work in Newport Coast and Fashion Island. He stated that, in cities where they do not periodically rebid the service, they end up paying the highest costs. He added. that this is a bid job, based on the submittal of cost and service, and that a firm has been selected and that there is no opportunity to change a bid after seeing the other proposals. Motion by Mayor Pro Tem Hill, seconded by Council Member Henn to approve the Agreement with, Great Scott Tree Service (GSTS) to provide tree maintenance services to the City for a ten-year term, with the opportunity for three two-year extensions, and authorize the Mayor and City Clerk to execute the Agreement. Mayor Pro Tem Hill reported that the low bidder was just over a 2% per year increase while the high bidder was about a 5% increase per year. He noted that City costs have escalated higher than. either of those with pension costs alone. In response to Council Member Daigle's question, Deputy Municipal Operations Director Pisani reported that, in 1993, the City piggy -backed on a bid with the City of Tustin and renewed the contract for a 10 -year term in 1994 and then again in 2004. Municipal Operations Director Harmon reported that WCA's current contract with the City is lower than GSTS to take over service; however, the current bid from WCA is approximately $500,000 more per year than the bid from GSTS. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hili, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle 27. AGREEMENT BETWEEN CITY AND CR&R INCORPORATED FOR RESIDENTIAL SOLID WASTE COLLECTION AND RECYCLING SERVICES, AND TRANSFER STATION OPERATIONS (C-5649). [381100-20131 City Manager Kif'f introduced the item and commented positively on the quality of staffs work, as well as the work of the three proposers. He deferred to Laith Ezzet of HF&H Consultants for a presentation. Laith Ezzet, HF&H Consultants, provided an update on the work that has been done since the September 10, 2013 Council meeting. He addressed interviews with each firm, results of a survey of customers and cities serviced by the companies, reference checks and safety ratings, diversion guarantees, and a summary of key proposal information. Municipals Operations Director Harmon addressed diversion, noting proposals weighted toward higher diversion levels. He addressed AB939, the City's current diversion level, diversion information, A13341, an optional diversion program offered by CR&R to increase diversion rates for residential waste, and costs for the optional diversion program. Council Member Henn clarified that, for CR&R, the extra cost of the optional diversion program would be $925,000 per year and noted that, even including the optional diversion program, Rainbow Environmental Services' bid was approximately $1 million more a year than the CR&R core services. Municipal Operations Director Harmon confirmed that it would cost the City approximately $900,000 per year of extra cost to try to achieve a diversion rate of 65%-75% today. He reported. Volume 61- Page 357 City of Newport Beach City Council Minutes November 12, 2013 that the City is already exceeding every goal set by the State today Mayor Curry noted that the bulk of diversion comes from commercial waste, which is not part of the agreement. The issue relates to household waste and whether or not the City wants to compel or require additional recycling. Municipal Operations Director Harmon indicated that, if the State required more, all of the commercial franchise agreements are set to expire in March 2017 which allows the City to increase its commercial diversion requirements in the franchise agreements. Further, the City can also do a more aggressive recycling program. He noted that CR&R's proposal already increases the diversion rate by 5 percentage points over what it is today and, as the City moves into a partial voluntary recycling program, significant increases will be seen in residential recycling and the level of diversion achieved. Council Member Gardner stated that it makes her uncomfortable when the only reason for recycling is to meet a mandate, emphasizing that there is a value to recycling beyond that. Council Member Henn added that, if two -stream recycling is implemented, there may be a significant improvement. He stated that it makes sense to wait and see how well the City does with the program. Municipal Operations Director Harmon addressed the proposed agreement with CR&R and addressed core and enhanced services. City Manager Kiff addressed projected savings with the CR&R bid and elements, noting that the total in savings to the City would be $15.8 million over seven years. Some of the savings were added into the contract as additional services. He presented information on how the City is protecting its employees in terms of choices available to them, presented an example of employee departmental transfers, and addressed community outreach. Municipal Operations Director Harmon addressed the details of the transition process. City Manager Kiff addressed current diversion rates and what the proposed contract suggests and believed that the big question is whether it makes sense today to pay for a higher diversion rate that may not be needed. Additionally, he reported that haulers were not allowed to change their costs after their initial submittals and addressed next steps. He stated that he is impressed by the quality of the vendors and that when it came down to staffs professional analysis, it was related to who can do quality service at the lowest price and staff is comfortable recommending CR&R. In response to Mayor Curry's question, Municipal Operations Director Harmon confirmed that the relative cost savings between CR&R and Rainbow Environmental Services is roughly $900,000 per year. Mayor Curry noted that Rainbow Environmental Services has built in fully phased -in diversion into their price, but it may not be needed. In response to Council Member Henn's question, City Manager Kiff reported that the confidence level is high regarding employee arrangements and there are sufficient openings within the City during the transition period. Council Member Petros requested and received confirmation from City Manager Kiff about the terms of the contract and that references to the City are now defined as the City Council and, therefore, any action to modify the terms of the contract would require a public hearing and Council action. City Manager Kiff noted that Council has direct oversight over the City's budget so that Council has more opportunity to review any modifications. He added that there is no evergreen clause in the contract and that this was a standard plus procurement in that there was a consultant analyzing the process with the City. Council Member Daigle noted that, currently, the City has the community's confidence but added Volume 61 - Page 358 City of Newport Beach City Council Minutes November 12, 2013 that the Municipal Operations Director will be leaving and wondered how the contract will be managed going forward. City Manager Kiff reported that the City will do a full recruitment and that the replacement will need to have expertise in contract management. Council Member Daigle commented on the need to maintain the confidence of the community and selecting a manager who has experience in managing outsourcing. Jay Ware, General Manager of Ware Disposal Company, addressed the efforts of his company in addressing Council's prior direction. He addressed details of their new enhanced proposal, noting that it exceeds the City's expectations at a reduced cost over the term of the contract. Jeff Snow, President of Rainbow Environmental Services, presented a history of the company and addressed MRFs and capabilities, awards, cities served, companies served, elements of the proposal, City employee outreach, diversion and compliance with mandates, and recycling options. He reported that an additional technology involving anaerobic digestion will be incorporated into their facility and accessible for the benefit of the City. He addressed new State mandates requiring a 75% diversion rate by 2020, changes in diversion calculations as of 2014, and noted their original proposal prices have not changed and provide lower prices for the highest diversion. In response to Council Member Henn's question, Mr. Snow acknowledged that the pounds per day, per resident the City is allowed to dispose is the standard that is in effect today. Municipal Operations Director Harmon explained that the City likely already meets what the State will propose as the new diversion level applicable for 2020 based on the City's current pounds -per -resident performance. In response to Council Member Daigle's question, he reported that the refuse facilities will certify the weight and material diverted from disposal and are carefully watched by the State to ensure they are accurate numbers. Mr. Snow added that they meet with CALRecycle on a quarterly basis. Regarding AB341, Municipal Operations Director Harmon stressed that there is no legislative mandated diversion level at this time. Dean Ruffridge, Senior Vice President of CR&R, reported that he will direct the transition and be responsible for every aspect of the project. He stated that the Company is ready to implement the plan outlined in their proposal and presented the company's history. He addressed CR&R's transition experience, compliance with AB939 and AB341, safety, their smart vehicle system, diversion, compliance with contract terms, Newport Beach areas already being serviced by CR&R, customer satisfaction, innovation and technology, and their commitment to City employees. He added that CR&R is the only company in attendance at this time that is permitted to handle hazardous material collection for residents. Council Member Henn requested and received confirmation from Mr. Ruffridge that CR&R does not burn trash. In response to Council Member Gardner's questions, Mr. Ruffridge stated that CR&R has started construction of their anaerobic digester which should be completed by September 2014 and this was offered as an option in the proposal. Additionally, CR&R has both clean and dirty MRFs and also demolition and construction MRFs. In response to Mayor Curry's question, Municipal Operations Director Harmon reported that all three firms have the ability to meet the individual mandates in terms of diversion, but added that the processing facilities of Rainbow Environmental Services and CR&R are more extensive and have the ability to meet the needs of the City, and added that they both have the ability to handle Volume 61- Page 359 City of Newport Beach City Council Minutes November 1.2, 2013 dirty and clean MRF. Jessica Susolik commented positively about Rainbow Environmental Services, adding that they are employee -owned and are consistent with the environmental values of the City. Garth Sutton asked Harbor View Elementary School parents to stand. He reported building a fully -sustainable home and addressed the value of recycling. He believed that the best company to do the job in consideration of the environment is Rainbow Environmental Services and added that he wants a company that can educate the community. He asked Council to consider Rainbow Environmental Services. Barry Allen asked that staff explain why there are such extreme differences in the amount the City will be paid for use of its facility. He reported that the transfer station contract is separate and suggested that, if the whole idea for outsourcing is to save money, the City should renegotiate or approve a contract with Rainbow Environmental Services. He reported reading all of the documents and none indicated how much the City is currently paying for in-house trash service. Council Member Henn pointed out that it is stated clearly in the contract that "City approval" means City Council approval. Jack Shaw spoke on behalf of Rainbow Environmental Services and commented on his background. He believed that organizations compete through their policy, culture and values and reported positively regarding Rainbow Environmental Services. Nancy Skinner thanked Council for being sensitive to the issues, especially in terms of their commitment to the City's employees. She commented on the importance of recycling and stated that she is impressed with Rainbow Environmental Services' capabilities. Bill Camarillo, President and CEO of Agromin, commented on his company's management of organic waste stream and stated the importance of having vision and being prepared for the future. He reported that organics make 30-40% of waste and that they partner with Rainbow Environmental Services to process organic waste. He addressed diversion versus recycling bills and spoke in support of Rainbow Environmental Services. Jody McKay commented positively on Rainbow Environmental Services' impact on the communities they serve and listed the company's contributions in making a positive social impact. She reported that they constantly contribute, the principals are accessible, and they are a company with a conscience and heart. Annemarie du LeBohn, Corporate Responsibility Strategist, commented positively about Rainbow Environmental Services and addressed their corporate responsibility. She added that they find solutions for all their waste streams, including e -waste. Dr. Janette Ganard, Professor of Corporate Social Responsibility, commented positively on the capabilities of Rainbow Environmental Services, their corporate social responsibility and their impact on the community. She noted that the company is employee -owned and has a low turnover rate. She added that Rainbow Environmental Services understands the needs of the City's residents and deserves the City's support. Stephanie Barger noted that many of the City's residents want to recycle or are already recycling and commented on the need to be a zero -waste community and put together a zero -waste plan to exceed the State mandates. She addressed the importance of recycling and noted that Rainbow Environmental Services' priority is recycling, but CR&R previously opposed a recycling system in the City. Volume 61 - Page 360 City of Newport Beach City Council Minutes November 12, 2013 John Ashton of Lido Isle addressed the low bid and stated that the City is passing up an opportunity to immediately improve its environmental focus. Dan Boyd commented on outsourcing and spoke positively about Rainbow Environmental Services. He added that he is not convinced that the bidding process has been as transparent as it could be and urged Council to delay its decision for no more than 30 days to make sure that it is choosing the right company. He suggested having the matter reviewed by the City Attorney's Office to make sure that staff has done a stellar job in the process and has been transparent. Jon Spotts reported that South Africa and Pennsylvania are already recycling. He stated that a 40% residential diversion rate is unacceptable and that the City should strive for more, be progressive, act responsibly, and do the right thing. Nick Froehlich, President of Harbor View Dads, spoke representing his wife who is the President of Harbor View Parent/Faculty Organization (PFO), believed that the satisfaction survey is biased. He added that Newport Beach should lead and not wait for State mandates, He stated it is not always about the lowest bid, but quality, responsibility; and service. He spoke in support of Rainbow Environmental Services' customer service and commitment to the environment. Denys Oberman commented on the $15.8 million in savings and encouraged Council to take another look at the numbers and do a like -for -like analysis. She stated that it is likely that the State will move to AB341 in 2014 and believed that the City should not wait but commit to a provider that will help the City comply with the mandate. She added that Rainbow Environmental Services is qualified to do this. Joe McAulkle stated that his daughters asked him to defend our environment. He urged Council to encourage recycling and have the vendor fit the City's objectives. George Schroeder stated that he believes in recycling and pointed out that staff stressed that they will receive the same level of service they are currently receiving. He expressed concerns with the City mandating recycling and commented positively on all three firms being considered. He spoke positively on the capabilities of CR&R and urged Council to make sure that residents receive the same level of service. Francisco Espinoza, Rainbow Environmental Services ownerlemployee, commented positively on his experience as an employee of the company and. asked Council to consider Rainbow Environmental Services as its service provider. Portia Weiss encouraged Council to look closer at the numbers and thanked Council for considering the matter. Jason Pitken stated that private enterprise is better -suited to provide these services than the government. He reported being the Trash Ambassador to Harbor View Dads and touring the three facilities that submitted proposals to the City. He reported that his group agreed that Rainbow Environmental Services would be the best fit for the City, believing that the City is currently charging residents $1 million per month in recycling fees to process the waste by CR&R with a 40% diversion. He added that the City of Huntington Beach charges nothing and is achieving a 75% diversion rate with Rainbow Environmental Services as their provider. Mayor Curry took issue with Mr. Pitken's reported costs and stated that the City charges a recycling fee but trash service is free, whereas the City of Huntington Beach charges a trash fee. Council Member Daigle referenced a recent article in the Orange County Register that indicated Volume 61 - Page 361 City of Newport Beach City Council Minutes November 12, 2013 the City of Huntington. Beach is one of the highest in the County City Manager Kiff reported that the $3 monthly fee charged to Newport Beach residents is a recycling fee and that most people in the City pay nothing beyond that. Huntington Beach has a private firm that does both, and residents are charged $19 per month. Mr. Pitken urged Council to take this opportunity to reward high performance standards of efficiency. Moah Turrender commented on sustainability and in support of Rainbow Environmental Services. She reported that Rainbow Environmental Services and Agromin has closed the loop between waste -to -soil practices and added that the model that Rainbow Environmental Services has today, will be replicated by waste haulers. Andrea Ayres urged Council to stay open to residents' perspectives. She noted that she wants the best service, but asked that it not be about the bottom line dollars. She believed that CR&R enhanced what they were offering and changed their bid, and urged Council to work hard to assess the matter. State Assemblyman Travis Allen spoke in support of Rainbow Environmental Services and on diversion rates, and noted that they are best suited to be in front of trends and legislation. In response to Mayor Curry's questions, Assemblyman Allen noted that one of the reasons for the process is to outsource trash service and Rainbow Environmental Services has offered to provide jobs to the City's trash haulers. Mayor Curry noted that the other two firms also offered City employees jobs and that the employees noted they would rather work for the City. He added that, even if the City hires Rainbow Environmental. Services, City employees can stay with the City or choose to work for the chosen provider. Jim Mosher believed that, if the City decides to transition to outsourcing for automated trash pickup, staff should do more outreach. He referenced a recent contract signed by the City for an outside consultant to help with community relations efforts. He addressed the accuracy and reliability of the information received regarding diversion in that it was presented as 9.6 pounds per home per day and noted that Mr. Snow correctly pointed out that it is pounds per person per day. He reported that the City relied on a single consultant to review proposals and believed that the process has not been totally transparent. Additionally, he commented on a past Council meeting where Council directed staff to obtain Mr. Joe Sloan's opinion of Sloan Vasquez and that no information has been provided regarding same. Mayor Curry noted that Mr. Sloan was speaking in support of one of the bidders and was contacted but stated that, if he was not going to be paid, he was not going to do any analysis. Municipal Operations Director Harmon added that Mr. Sloan did contact staff and expressed confidence that HF&H was qualified to make the findings that they made. Tom Baker addressed the cost of the current contract in the Newport Coast area and wondered why it can be done cheaper under the proposed contract. Council Member Henn stated that there are approximately 30,000 households in the City that are charged the $3 recycling fee which equates to approximately $900,000 per year, not month. :Furthermore, there are no other charges compared to what the City of Huntington Beach charges. He noted that there have been dozens of testimonials on behalf of Rainbow Environmental Services, but that none offered facts to the effect that the performance of the other proposers would Volume 61 - Page 362 City of Newport Beach City Council Minutes November 12, 2013 be significantly lower for the contracted services than Rainbow Environmental Services. He reported that Council's decision should depend on a set of objective facts, based on independent surveys and analysis, that the three providers are capable of doing what the City requires and that the decision is relatively simple. Since the City is arguably already achieving the diversion rates that would be likely mandated for 2020, it does not make sense for taxpayers to pay an extra $1 million a year for this service today. He expressed support for CR&R. In response to Council Member Gardner's question, Municipal Operations Director Harmon reported on the costs for trash service in Newport Coast and'noted that it is $2 less than the current proposal which includes the City's transfer station to offset costs. He added that there are parts of Newport Coast that are challenging. Council Member Gardner addressed the $900,000 difference between CR&R and Rainbow Environmental Services and that Rainbow's proposal is $7.5 million more over a seven year term. City Manager Kiff added that the City is at 60-70% diversion or more and that, although there is a great value in recycling, the City does not need it at that level at this time. Council Member Gardner reported that the City is far from having a zero -waste program and noted that no matter who is chosen, the City will save money, trash services needs to be as high as water quality, and that CR&R has not been allowed to respond. She added that CR&R may also have a school program and stated that she would like more information on the benefit of not having a landfill. She indicated that there are still things that need to be answered and that she is willing to postpone the item another two weeks. Mayor Curry noted that all of the providers are capable, but this is not a popularity contest, and that the City wants to provide quality service at a competitive price. He added that there has been no evidence submitted that any of the providers collect trash better than the other or that there will be a material difference in the diversion rate. He confirmed that recycling will be voluntary and believed that the choice is clear. Motion by Council Member Henn, seconded by Moor Curry to a) authorize Mayor Curry to sign the Residential Solid Waste Collection and Recycling Services Agreement, in substantially the same form as the agreement in the staff report; and b) authorize Mayor Curry to sign the Transfer Station Operator Agreement, in substantially the same form as the agreement in the staff report. ,Substitute Motion by Council Member Daiale to award Ware Disposal a portion of the business. The substitute motion failed for lack of a second. Mayor Pro Tem Hill stated that this has been the toughest decision he has been called upon to make. He thanked staff for the process, noting that it has been thorough and transparent. He noted that the City is a unique town and that quality of life is on the top of the list. He stated that he has not changed his position and is not supportive of outsourcing. He stated that there is a responsibility to balancing the quality of life with administering a cost-effective organization. He requested that the maker of the motion include that, if adopted, Council would receive a semi- annual accounting from staff that would be a comparison of actual costs to projection so that a measurement can be made that the City is meeting its financial goals. It not, he noted that there are provisions in the contract to allow changes. Council Member Henn stated that he does not feel compelled to do a semi-annual report due to the annual budget process, and noted that there will be an 1.8 -month roll out period. Mayor Curry added that the Quarterly Business Report (QBR) will also provide this information. Council Member Henn affirmed that Council has studied the issue thoroughly Volume 61 - Page 363 City of Newport Beach City Council Minutes November 12, 2013 Council Member Daigle thanked staff for bringing the matter forward and noted that savings will be used for important community programs. Council Member Petros stated that all three of the proposers have very high marks and addressed safety, technology, and public safety. He reported that he has thoroughly reviewed the matter and can support it at this time and that the contract has been changed to reflect many of his concerns. He stressed that CR&R did not change any of their terms, but rather Council decided to have them add some of the materials they had requested. He stated that the team has done an excellent job to be transparent and that, if there will be issues with quality of life, it will return to Council and then to CR&R. Council Member Selich stated that he maintains his original position and is not in favor of outsourcing. Council Member Gardner stated that the City would be doing a disservice to CR&R if it votes tonight because, by giving them a few more weeks, they could respond to many of the issues raised. She believed that there are many that feel that Rainbow Environmental Services is offering something that CR&R is not, but this may not be the case and needs to be made clear. The motion carried by the following roll call vote: Ayes: Council Member Petros, Mayor Curry, Council. Member Henn, Council Member Daigle Noes: Council Member Gardner, Mayor Pro Tem Hill, Council Member Selich XIX. MOTIONS FOR RECONSIDERATION - None XX. ADJOURNMENT - 11:45 p.m. The agenda for the Regular Meeting was posted on November 7, 2013, at 4:00 p.m. on the City's website, on November 7, 2013, at 4:00 p.m. on the City Mali Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive; and on November 7, 2013,.at 4:00 p.m. in the Meeting Agenda Binder located in the entrance of the City Council Chambers at 100 Civic Center Drive. W6Uu � City Clerk Recording Secretary Mayo- Volume 61- Page t