The URL can be used to link to this page

Home My WebLink About01 - 11-13-01 & 11-16-01City Council Meeting November 27, 2001 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes D�� Study Session November 13, 2001 - 4:00 p.m. INDEX ROLL CALL Present: Heffernan, Ridgeway, Proctor, Mayor Adams Absent: O'Neil (excused) Glover (arrived at 4:20 p.m.), Bromberg, CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR — None. 2. "FUNCTIONAL BUDGETING" — GEORGE JEFFRIES' LETTER. Mayor Adams confirmed with City Manager Bludau that the item would be continued to the Study Session of December 11, 2001. Mayor Adams stated that it would have been better to have the discussion at the same meeting as Item No. 4, Contracting Out for City Services, but announced that Mr. Jeffries is out of town. Mayor Adams stated that the contracting issue could still be discussed in conjunction with functional budgeting at the December 11th meeting. Council Member Proctor asked if the item needed to be continued. Mayor Adams stated that it was up to the City Council. Council Member Proctor stated that he read the staff report and felt that it was fully explanatory, and that discussion was possibly not necessary. Mayor Adams stated that the benefit would be to provide the opportunity for the issue to be raised in a public forum. 3. ASSEMBLYMAN JOHN CAMPBELL PRESENTATION. Assemblyman John Campbell stated that his hope in attending the current meeting was to provide information to the City Council as well as to listen to their comments, so that he could better represent Newport Beach in Sacramento. Assemblyman Campbell began by mentioning the success of SB124, which he and Senator Ross Johnson were involved with. Assemblyman Campbell stated that the Bill allows the City to purchase the Caltrans West property at a reasonable price and turn it into a park. He stated that they were also able to get language into the Bill regarding Corona del Mar's Vision 2004 Program. Additionally, Assemblyman Campbell mentioned the success of a bill that puts the Irvine Ranch Water District in charge of cleaning up San Diego Creek, which flows into Back Bay. Regarding airports, Assemblyman Campbell admitted that he did not share the City Council's viewpoint on the potential for an airport at El Toro but Volume 54 - Page 547 Functional Budgeting (40) [No report) City of Newport Beach Study Session Minutes November 13, 2001 fFT1 . that he did share their viewpoints relative to the John Wayne Airport. He stated that he was ready to assist the City in extending the caps at the John Wayne Airport. He, additionally, offered to act as a mediator in discussions with South County regarding the issue. Assemblyman Campbell, lastly, stated that he wanted to let the City Council know how the State budget might affect Newport Beach. He announced that the projection of the State budget will be for a $12.4 billion deficit, which is 15% of the expected expenditures for the year and projects a 12% drop -off in revenues. Assemblyman Campbell added that the projection presumes an economic recovery during the second quarter of 2002, while some say the recovery won't occur until the third or fourth quarter. Assemblyman Campbell stated that one of the items that is under discussion at the State level is the money from the Vehicle License Fees (VLF) that is currently going to the cities. He stated that he recently signed a letter to the Governor, as did most of the Republican caucus, stating that the budget deficit is the State's problem and should not be transferred to the cities. For political reasons, Assemblyman Campbell believed that the State will go after the VLF. He stated that the money set aside for the Back Bay restoration has been funded, but there is still the possibility that the State will consider taking it back also. He said he will do his best to ensure that this doesn't happen. Mayor Pro Tem Ridgeway asked about a Statewide initiative he'd heard about that prevents the Legislature from attacking cities. Assemblyman Campbell stated that it hasn't qualified for the March, 2002 ballot yet, but that the Legislature has until November 26, 2001, to put items on the ballot. He added that six initiatives have qualified for the March ballot and, of those, four or five were put on by the Legislature. Additionally, he clarified that the State budget starts July 18t, and the projections he gave earlier were for the 2002 -2003 budget. Mayor Pro Tem Ridgeway asked if the shortfall was directly related to the electric bill that the State has picked up. Assemblyman Campbell stated that although the amounts are similar, they are not related. He explained that although the money that the State spent on buying electricity was paid out of the general fund, it is owed to the State by the ratepayers. He added that if the bonds are not sold, there will be a cash flow problem and money will have to be borrowed. Assemblyman Campbell stated that the deficit is due to increased spending in the State, which was previously covered by the capital gains taxes, but isn't any longer. Per Mayor Pro Tem Ridgeway's question, Assemblyman Campbell explained that the increased spending has been towards education, health and welfare programs, personnel, and a variety of other things. Council Member Proctor asked what approach the State would likely take and if a 15% cut on everything would be considered. Assemblyman Campbell stated that an overall cut would be unlikely. He explained that it would mean that education would be hit and with it being an election year, cutting education wouldn't be likely, and that it is also unlikely that public safety would be hit, due to current conditions. Assemblyman Campbell noted, however, that cities and counties are already carrying much of the additional security burden. Council Member Proctor thanked Assemblyman Volume 54 - Page 548 City of Newport Beach Study Session Minutes November 13, 2001 Campbell for his work on S13124. Mayor Pro Tern Ridgeway asked what the State was planning to do regarding the budget. Assemblyman Campbell stated that the largest dollars can be found in education, but it is politically difficult to make cuts in that area. He added that increased taxes could also be considered, but stated that he would oppose that approach. He stated that another option would be to play with the budget numbers, but that some are projecting a deficit through 2006 or 2007 and playing with the numbers wouldn't deal with the structural imbalance that is occurring. He stated that it's difficult to predict what will happen, particularly since it's an election year. Per Mayor Pro Tem Ridgeway's question, Assemblyman Campbell stated that, if it were up to him, he would look at the significant increases in the ongoing spending in such areas as State bureaucracy, welfare programs, and entitlements. He stated that the education money that is not well spent should also be looked at. He objected to any tax increases, since the problem is one of spending. Council Member Glover stated that there are too many laws and almost every law has budget implications. Assemblyman Campbell agreed. Council Member Glover stated that Newport Beach will need his support in getting the entire Orange County delegation to support the extension of the John Wayne Settlement Agreement. City Manager Bludau stated that it is frustrating when the State government exempts itself from many of the laws it passes. He stated that this is wrong and asked about the promises made about the VLF not being taken away. Assemblyman Campbell stated that the only value the promises have are that the cities can remind the State of the promises and involve the media. He stated that a similar situation occurred with transportation funding the prior year. City Manager Bludau complimented Assemblyman Campbell and his staff, noting that they've been good to work with. Assemblyman Campbell introduced Jennifer Cowen, his district director. Council Member Bromberg congratulated Assemblyman Campbell for his part in helping the City acquire the Caltrans West property, and asked what committees he is a member of. Assemblyman Campbell stated that he's Vice Chairman of the Budget Committee and the Business & Professions Committee, and a member of the Utilities and Commerce Committee, the Insurance Committee and other various energy committees. Mayor Adams thanked Assemblyman Campbell for the work he's does on behalf of Newport Beach. He presented the assemblyman with a City tile. 4. CONTRACTING OUT FOR CITY SERVICES. City Manager Bludau stated that Phil Arst wrote a letter to the City Council and the General Plan Update Committee regarding the City's efforts at contracting out for services and indicating that Newport Beach is not being run as efficiently as other cities, due to its negligible use of outside services. City Manager Bludau explained that contracting out, or privatization, isn't Volume 54 - Page 549 INDEX Contracting Out for City Services (66) City of Newport Beach Study Session Minutes November 13, 2001 FIN 1)xl an easy issue to deal with and that there are many ways to approach it. He stated that the decision to contract out for services, and to what level, has to be decided by each community because each community is different. He added that there is no right or wrong answer, and that the decision is based on how the tradeoffs are measured. City Manager Bludau stated that all of the cities in the State probably contract out for services, but that the extent to which it is done varies widely. He noted that some cities are referred to as "contract cities" and that these cities have just enough employees to oversee and manage the contracts that provide the basic services for the City. He stated that most of these cities are the newer cities that were incorporated after Proposition 13 and were used to receiving County services prior to incorporation. City Manager Bludau stated that the advantages of contracting out for City services include the reduction of overhead and administrative costs because fewer employees are needed, the cost savings that result from economy of scale, the reduction in personnel and compensation issues, the opportunity to compare City versus marketplace costs, contract employees usually cost less, it is easier to match service needs with financial capability, and liability risk is shared with the contractor. City Manager Bludau then listed the disadvantages of contracting out for City services as including the difficulty in not accepting the lowest bid, having services that don't lend themselves to performance standards, and paying extra money for work outside of the contract. He added that the employees of the contractor are not City employees, causing potential disadvantages in regards to employee turnover, employee selection, strikes, and the uncertainty of the employees responding to a disaster or emergency. City Manager Bludau stated that additional disadvantages of contracting out include the high cost of obtaining technical or specific expertise, and the inability to perform the services once they've been contracted out due to losing the proper equipment and employees. City Manager Bludau then listed the advantages of providing services through City employees. He stated that these employees are selected by the City through a public recruitment process, disciplinary action can be imposed, longevity is usually greater, there's a proven capability for responding to disasters, cross training is more easily facilitated, it's easier to develop loyalty, and job stability is an inducement to private sector workers. City Manager Bludau stated that the disadvantages of providing services through City employees include higher wages and benefit programs, higher administrative support costs, negotiations with employee bargaining units is mandated by State law, employee evaluations and disciplinary process is very time consuming, maintaining the right number of employees in positions affected by economic cycles is difficult, getting rid of marginal employees who've made it through the probationary period is difficult, the ongoing costs of retired employees, and the public perception that the private sector can do things better. City Manager Bludau stated that Mr. Arst based part of his information on a Volume 54 - Page 550 City of Newport Beach Study Session Minutes November 13, 2001 " 17x:/ 1993 Los Angeles Times article, which stated that Newport Beach only uses private contractors in three areas. City Manager Bludau stated that the staff report includes a list of the contracted services used in the City today, and that the list includes twenty -seven different categories totaling approximately $7.4 million annually. He stated that the largest contracts are for street tree maintenance, landscape maintenance, building maintenance, and sidewalk and curb repair. He stated that the City began its first major contracting in 1994 and that the experience has been mixed, noting that problems have included contractors who have underbid and were unable to perform the services required, and the reduction in competition as a result of larger companies taking over smaller companies. City Manager Bludau stated that the most successful contracting experiences have been with street tree maintenance, but problems have been seen in the areas of landscape maintenance and restroom cleaning. He added that another specific problem has been with the contract building plan checkers who perform about 10% of the checks, but generate about 60% of the complaints. He stated that this is due to them not knowing Newport Beach as well as the City employees. City Manager Bludau mentioned that the staff report includes his ranking of the potential for each department in the City to contract out for services. He stated that he wouldn't recommend contracting additional services out due to the high quality of service currently provided by City employees. He added, however, that opportunities for contracting services should continue to be looked at. In conclusion, City Manager Bludau stated that Newport Beach is a unique city and a city based on quality, with a community that expects excellent service. He stated that the challenge is to provide a very high level of service at a reasonable cost. He noted that the benefits of contracting out revolve around saving money, and the strengths of providing services with City employees revolves around stability, the knowledge and pride of the workforce, and the control and influence that the City has over the employee's work performance. City Manager Bludau stated that his knowledge of the community is that it is willing to pay a little more for quality of service. He noted that residents pay the same in taxes, whether the services are performed by contracted or City employees. City Manager Bludau stated that his job is to provide good day -to -day services, and that he is looking to the City Council for the policy decision. Mayor Adams stated that one of the most valuable components of the staff report was the department -by- department assessment and the recommendation for the potential of contracting out of additional services for each. Per the request of the Mayor, City Manager Bludau read through this section of the report. He began by mentioning the City Clerk's office, with three permanent employees, and the knowledge that is required for the services provided. He stated that he saw no potential for contracting out of additional services in this office. Mayor Adams added that the City Charter designates the selection of the City Clerk. City Manager Bludau stated that Volume 54 - Page 551 City of Newport Beach Study Session Minutes November 13, 2001 INDEX the City Attorney is another City Charter designated position, and that the potential for contracting out of additional services is poor due to the value of having knowledge of the history and culture of the City. Mayor Adams noted that some contracting of services is already done in the City Attorney's office based on workload and the number of cases. City Manager Bludau stated that the City Manager's office has five permanent employees and one part- time employee. He stated that the City Manager is selected by the City Council, like the City Clerk and the City Attorney, per the City Charter. City Manager Bludau stated that the potential for contracting out of additional services is poor. City Manager Bludau stated that the Human Resources Department has eight permanent employees and that it is important to have a staff that is knowledgeable about City rules, procedures, programs and employees. He stated that some contracting out is done for workers' compensation and risk management, but that the potential for additional contracting is poor. City Manager Bludau stated that the Administrative Services Department has 45 permanent and 9 part-time employees, and that he doesri t see advantages to contracting out additional services. He noted that a stable workforce is a real benefit in these areas and that the cost to contract would likely be greater. City Manager Bludau stated that the Police Department is the largest department with 228 permanent employees and 49 part-time employees. He stated that the City has excellent police services and he didn't feel that contracting out could provide better service. He added that some cost savings could be realized with the County Sheriffs Department, but that the tradeoff would be a lower level of service. He stated that public safety is the community's greatest value and the potential for contracting out of additional services is medium, but not advised. City Manager Bludau stated that the same is true of the Fire Department, which has 132 permanent employees and more than six part -time employees. He stated that there is the option of working with the County Fire District, but he didn't feel that service could be improved. He stated that the potential is again medium, but not advised. Mayor Pro Tem Ridgeway noted that the residents of Newport Coast are agreeing to the annexation based on their high expectations of the City's police and fire services. City Manager Bludau stated that the Planning Department has 16 permanent employees and one part -time employee. He stated that specialized knowledge of the community and local regulations is very important, and that contracting for technical expertise would likely be more costly. He ranked the potential as being low. He stated that the Building Department has 25 permanent employees and that, although Building Codes are similar among most jurisdictions, detailed knowledge of the community is important. City Manager Bludau stated that contracting out would be more expensive, and that the potential is medium but not advisable. City Manager Bludau stated that the General Services Department has 125 full -time employees, and an additional number that are temporary. He Volume 54 - Page 552 City of Newport Beach Study Session Minutes November 13, 2001 INDEX stated that the department already contracts out for more of its services than any other department, and that the potential for further contracting is ranked as medium. City Manager Bludau stated that the Community Services Department has many part -time employees and that a great deal of contracting out is already done in the Recreation Division. He stated that knowledge of the community and the community's expectations are important, and the potential for additional contracting is low. Mayor Adams stated that a great deal of contracting is also done in the education area. City Manager Bludau stated that the Public Works Department has 33 full - time employees, and a high level of contract work is already done through the department. He stated that there is the potential for more contracting out of project planning, inspections and some transportation functions. He ranked the potential as medium. City Manager Bludau stated that the Utilities Department has 44 permanent and 18 part -time employees. He stated that the longevity of the personnel is valuable and that it would be difficult to duplicate the current quality of the services provided. He ranked the potential for additional contracting as low. Mayor Adams summarized the City Manager's comments by stating that the only two departments with any substantial opportunity for contracting services are Public Works and General Services. City Manager Bludau added that the City does consider contracting out of services on a daily basis. Council Member Glover noted that the City Manager is conservative in his spending and it is at the direction of the City Council that additional money is spent, per the requests of community members. Council Member Glover stated that recently she had someone in her district who felt he had a traffic problem. She stated that tests were done and much time was spent on the issue. She pointed out that no "contract city' could provide that level of service to any one individual's request. Council Member Glover stated that the residents of Newport Beach are accustomed to quality of service and speaking directly with employees in the higher -level positions. Additionally, Council Member Glover stated that by contracting out tree trimming services and not trimming the ficus trees as frequently to save money, the City has encountered many lawsuits. She stated that it has cost the City thousands of dollars. She noted that the "contract cities" are the newer cities and that they plant faster growing trees that don't live as long. Council Member Glover stated that all of the implications of contracting out need to be considered prior to doing so, and that it needs to be done carefully. In conclusion, she stated that the majority of the community does not support the contracting out of additional services. She stated that becoming a "contract city" would cause disruption in the community and that standards would have to be lowered. Council Member Proctor noted that he has experience with the contracting out of services through his own job and the Airport Commission. He complimented the City Manager's report and agreed that the residents have become accustomed to a higher level of service. Council Member Proctor suggested that the City Council discuss the opportunities for reversing some Volume 54 - Page 553 City of Newport Beach Study Session Minutes November 13, 2001 INDEX of the contracting out that is already done. He specifically mentioned the County patrolling the bay, and stated that it might be better handled by the City's Police Department. Mayor Pro Tem Ridgeway stated that his development company was founded on the contracting out of services. He stated that, like all organizations, there was a growth factor and services were later internalized. He stated that Newport Beach was incorporated in 1906, and that many cities desire to be as mature and self- sustaining as Newport Beach. He stated that he is open to listening to the public's input on the contracting out of services, but that he will not consider the contracting out of public safety. He added that efficiency could possibly be improved in some areas, but that residents are not interested in spending less money and lowering their expectations. Mayor Adams stated that contracting out of City services was discussed during the budget process but when he received Mr. Arst's letter, he felt that it was appropriate to discuss the issue midyear. He noted that looking at improving efficiency is done on a daily basis. Mayor Adams stated that some of the issues brought up in Mr. Arst's letter were not responded to in the report from the City Manager. He noted the comment in the letter about Newport Beach having the highest governmental expenditures per capita. Mayor Adams stated that this is partly due to the doubling of the City's population during the summer months and the higher level of service that is provided in general. He additionally noted the comment in the letter about Newport Beach having the highest ratio of employees to residents. Mayor Adams stated that again he is not alarmed due to the services provided. He specifically mentioned lifeguards, police and fire. He stated that he doesn't feel that Mr. Arst's numbers demonstrate that the City is being run inefficiently. He agreed, however, that there is always room for improvement and there are areas that the City should continue to watch. Mr. Arst stated that he is accustomed to always looking at costs and revenues. He clarified that he doesn't feel that Newport Beach should become a "contract city' or that public safety should be replaced. He stated that the level of service in the City should be maintained, but that administrative costs should be looked at. Mr. Arst stated that it was unfortunate that Mr. Jeffries wasn't present at the current meeting since they worked together on their ideas. Mayor Adams reminded Mr. Arst that when the functional budgeting item is discussed that Mr. Arst could also discuss the contracting out of City services in conjunction with it. Mr. Arst stated that Mr. Jeffries included information about the efficiency of the library operation and that the decision to privitize can only be evaluated if the costs can be determined. He stated that the City Manager's report didn't include information on the actual costs of outside services. Mr. Arst agreed that Newport Beach has extra expenses, but stated that there could be room to improve efficiency. He also agreed that Newport Beach does do more itself, and added that he's not saying that it should become a "contract city". Mr. Arst stated that costs and revenues need to be looked at and the cost basis needs to be improved. He stated that the key Volume 54 - Page 554 City of Newport Beach Study Session Minutes November 13, 2001 IRM point to remember is that privatization works for many Orange County cities. He specifically mentioned data processing services and stated that it's a prime area to contract out. He recommended that functional budgeting be discussed in conjunction with the issue of privatization. He suggested that it would be reasonable to contract out for City services at a rate of ten to thirty percent over a period of five years. Additionally, he suggested that a consultant do an analysis and possible areas of privatization be considered, with enactment done in phases over a period of time. Mr. Arst stated that the possibilities for the contracting out of services should be looked at. City Manager Bludau noted that if Mr. Arst's figures for per capita revenue and expenditures were used, it would mean that the City is spending approximately $400 more per capita than it is receiving. He noted that this totals $28 million of unaccounted revenue, which isn't correct. Mr. Arst stated that he got the figures from the League of California Cities. Mayor Pro Tern Ridgeway stated that the City has a balanced budget and there isn't a deficit. He stated that Newport Beach is a unique city with its summer population, and can't be easily compared to other cities. Council Member Bromberg added that the residents of Newport Beach expect a level of service that is probably greater than any other city in Orange County. He stated that services could possibly be provided for less money, but it wouldn't be at the current level of quality. Council Member Bromberg confirmed with City Manager Bludau that tree trimming services have been contracted out since 1994. Council Member Bromberg noted that the tree in front of his home hasn't been trimmed since that time. He stated that this only provides an example and he wonders what would happen if other, more significant services were contracted out. Mr. Arst stated that the City adopted a policy to not trim the trees every year. He stated that the subcontracting has nothing to do with it and if the trees were trimmed at the previous rate, it would still be cheaper with the subcontractor. Council Member Bromberg stated that he sees a lack of service with the subcontractor and he is concerned how other services would be affected. Mayor Adams complimented Mr. Arst for raising the issue of contracting out for City services, and added that data processing might be a candidate for additional opportunities. He added, however, that Mr. Arst and Mr. Jeffries' implication that the City is budgeting without knowing what it is doing is open to debate. He explained that there are two forms of budgeting and one way isn't necessarily better than the other. He agreed that the discussion should take place. Council Member Glover suggested that Mr. Arst look at redevelopment agencies in other cities and understand the indebtedness these cities have taken on. She stated that these redevelopment budgets are also kept separate from the general budget. Mr. Arst explained that he hasn't made any comments about Newport Beach's overall financial structure and that he has only made a suggestion about the City's opportunity to operate more efficiently. He stated that he hoped the City Council would look at the suggestion as one that would be done on a gradual basis. Volume 54 - Page 555 City of Newport Beach Study Session Minutes November 13, 2001 Tom Hyans, Balboa Peninsula resident, thanked Mr. Arst for bringing the issue to everyone's attention. He stated that he believes there is excess in city government and specifically didn't agree with the annexation of Newport Coast. Mr. Hyans stated that Mr. Arst's points should be looked at. He cited tree trimming as a good example of how privatization can be done successfully, and stated that more privatization should be looked at. Mayor Adams stated that the City is taking a serious look at the issue. He asked when the City had last done a Citywide efficiency study. City Manager Bludau stated that he didn't believe that such a study had been done. He added that if one is done, the guidelines of what efficiency means would have to be set. He stated that government is very influenced by politics. Council Member Glover added that government is human oriented, while businesses are product oriented. She stated that, for this reason, efficiency would be hard to define. Mayor Adams asked if the privatization of residential refuse pickup had been looked at in the City. City Manager Bludau stated that it had been looked at twice in the last ten years, and that the recommendation was not to privatize. He added that it was also recommended not to change to mechanical pickup. Mayor Adams asked that a copy of the minutes of these discussions be forwarded to him. PUBLIC COMMENTS —None. ADJOURNMENT — 5:55 p.m. The agenda for the Study Session was posted on November 7, 2001, at 1:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 54 - Page 556 CITY OF NEWPORT BEACH City Council Minutes DRAFT Meeting November 13, 2001 - 7:00 p.m. INDEX - 4:00 p.m. CLOSED SESSION - 6:00 p.m. ................... A. RECESSED AND RECONVENED AT 7:10 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Ridgeway, Glover (arrived late), Bromberg, Proctor, and Mayor Adams Absent: None C. CLOSED SESSION REPORT - None. D. PRESENTATION OF COLORS BY EXPLQRER POST 1050 AND PLEDGE OF ALLEGIANCE E. INVOCATION - Pastor Eric Heard, Small Groups Ministry, Mariners Church. F. PRESENTATION - None. G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION,_ACTION OR REPORT (NON- DISCUSSION ITEM): Council Member Heffernan requested the City Attorney's input relative to insurance and indemnity clauses in contracts. Mayor Pro Tem Ridgeway stated that 70% of the hotels in the County participate in the Orange County Hotel Water Efficiency Program. He reported that patronage to these hotels means that they have a water saving conservation effort and will not wash the towels or linens on a daily basis. He noted that it takes eight glasses of water to wash one dirty glass. He added that about 30% of restaurants are also on water conservation programs. Council Member Bromberg requested an item on the agenda relative to determining the appropriateness of sending a letter to former Los Angeles Mayor Richard Riordan regarding his position on the E1 Toro airport and explaining the importance of this airport to all of Orange County. He noted that he was in favor of it as he came close to entering Volume 54 - Page 557 City of Newport Beach City Council Minutes November 13, 2001 the gubernatorial race. Noting that the City is considering placing a cover over the San Joaquin Reservoir, Council Member Bromberg recommended also installing sensor devices to shut down valves and automatically call the necessary personnel if the reservoir cover is penetrated. Council Member Proctor requested that $3,000 of his district discretionary fund be used to replace the Newport Island bulletin board. Council Member Proctor requested that the City Manager look into having the Newport Beach Police Department take over bay enforcement issues from the Sheriffs Department. I. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. Removed at the request of an audience member. 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. ORDINANCE FOR INTRODUCTION 3. AMENDMENTS TO THE NEWPORT BEACH MUNICIPAL CODE REQUIRING USE OF FRANCHISED HAULERS FOR DEMOLITION ACTIVITIES, AND AUTHORIZING THE GENERAL SERVICES DIRECTOR TO ENFORCE THE SOLID WASTE MANAGEMENT ORDINANCE. Introduce Ordinance No. 2001 -22 adding Section 15.02.035 to Chapter 15.02 pertaining to Uniform Administrative Code and amending Section 1.12.020 of Title 1 pertaining to enforcement of Chapter 12.63 of Title 12. ORDINANCE FOR ADOPTION 4. REVISION OF TWO -HOUR PARKING LIMIT ON A PORTION OF ST. JAMES ROAD (CLIFF HAVEN). Adopt Ordinance No. 2001 -21 revising Preferential Parking Zone "2" — Newport Heights and Cliff Haven and rescinding Ordinance No. 97 -28. RESOLUTIONS FOR ADOPTION 5. MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT RENEWAL, ANNUAL REPORT FOR 2001 FISCAL YEAR, AND ADOPTION OF RESOLUTION OF INTENTION TO LEVY FOR 2002 FISCAL YEAR. 1) Approve Marine Avenue Business Improvement District 2001 Annual Report; and 2) adopt Resolution of Intention No. 2001 -91 to levy for 2002 Fiscal Year and set the public hearing for December 11, 2001. 6. Removed at the request of Council Member Heffernan. Volume 54 - Page 558 Ord 2001 -22 Demolition Activities (42/44) Ord 2001 -21 Two -Hour Parking/ St. James Road/ Cliff Haven (85) Res 2001 -91 Marine Avenue BID (27) City of Newport Beach City Council Minutes November 13, 2001 BALBOA BOULEVARD REHABILITATION FROM MEDINA WAY TO ADAMS STREET (C -3322) — COMPLETION AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) 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 4) release the Faithful Performance Bond one (1) year after Council acceptance. 8. Removed at the request of Council Member Heffernan. 9. JAMBOREE ROAD MEDIAN LANDSCAPING SOUTH OF BISON AVENUE REIMBURSEMENT REQUEST. 1) Approve the plans and specifications; and 2) authorize a budget amendment (BA -020) appropriating $104,229.35 to Account No. 7261- C5200660 from the Circulation & Transportation Fund Balance. 10. AUTOMATIC AID AGREEMENT FOR FIRE, RESCUE AND EMERGENCY MEDICAL SERVICES BETWEEN THE CITY AND THE ORANGE COUNTY FIRE AUTHORITY. Approve the Automatic Aid Agreement for Fire, Rescue and Emergency Medical Services between the City and the Orange County Fire Authority and authorize the Mayor to execute the agreement. 11. Removed at the request of Council Member Heffernan. MISCELLANEOUS ACTIONS 12. Removed at the request of Council Member Heffernan. 13. APPOINTMENT TO THE HARBOR QUALITY CITIZENS ADVISORY COMMITTEE. Confirm Council Member Heffernan's nomination of Dennis Baker to the Harbor Quality Citizens Advisory Committee. Motion by Mavor Pro Tern Ridgewav to approve the Consent Calendar, except for those items removed (6, 8, 11, and 12). The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Bromberg, Proctor, and Mayor Adams Noes: None Abstain: None Absent: Glover J- ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF OCTOBER 23, 2001. Volume 54 - Page 559 INDEX C -3322 Balboa Boulevard Rehabilitation (38) C -3340 BA -020 Jamboree Road Median Landscaping (38/40) C -3493 Automatic Aid for Fire, Rescue, and Emergency Medical Services (38) Harbor Quality Citizens Advisory Committee (24) City of Newport Beach City Council Minutes November 13, 2001 Jim Hildreth, 120 The Grand Canal, referenced Page 539 and believed that his statement should be amended to read, "Jim Hildreth stated that he hopes that the privatized trash collectors will pick up after themselves. Trash is being left on the ground after they've loaded their truck." Further, he believed that the Mayor's statements should be included in the minutes for Item 6 and requested that his video tape of the October 23, 2001, Council meeting be entered into record. He proceeded to read the Mayor's statement from that meeting. Motion by Council Member O'Neil to waive reading of subject minutes, approve as written and order filed. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None 6. RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT 2001 ANNUAL REPORT AND DISTRICT RENEWAL. Council Member Heffernan referenced the summary on Page 3 of the staff report and noted that the dollar amounts do not add up. Scott Palmer, Cathimarie's Inc., stated that they are the contract administers of the Restaurant Association Business Improvement District (BID). He indicated that they inadvertently left out $25,000 in the staff report that is expected to be spent by the end of the fiscal year. He reported that the money has been budgeted and approved by the BID for programs that will be finished by the end of the year. Motion by Mayor Pro Tem Ridgeway to 1) approve Restaurant Association Business Improvement District 2001 Annual Report; and 2) adopt Resolution of Intention No. 2001 -92 and set the public hearing for December 11, 2001. The motion carried by the following roll call vote: Ayes: Heffernan, ONeil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None 8. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR PUBLIC WORKS INSPECTION SERVICES. In response to Council Member Heffernan's questions, Public Works Director Badum indicated that this item was not included in the original budget and was added in order to get the piers done before summer. He stated that the department has an overload of work and needs to bring Volume 54 - Page 560 ff�ffl3 Res 2001 -92 Restaurant Association BID (27) C -3492 BA -022 Inspection Services . (38/40) City of Newport Beach City Council Minutes November 13, 2001 on additional help. Motion by Council Member O'Neil to 1) approve a Professional Services Agreement for Inspection Services with Quantum Consulting for $75,000 and authorize the Mayor and the City Clerk to execute the agreement; and 2) authorize a budget amendment (BA -022) appropriating $150,000 to 5100 -8080 (Services - Professional & Technical) from General Fund unappropriated surplus fund balance. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None 11. WEED ABATEMENT SERVICES ON CITY OWNED PROPERTIES. In response to Council Member Heffernan's question, Fire Chief Riley explained that $16,875 was for the rebid of a specific area around the Big Canyon Nature Park. He reported that Southland Landscape Maintenance and Installation was doing one section and R. C. G. Company Landscape Care was doing another section for under $29,000, and explained that the bid is only increasing by the amount of the additional parcel. Motion by Mayor Pro Tem Ridgeway to award the City's Professional Services Agreement to Southland Landscape Maintenance and Installation for Weed Abatement Services on City owned properties. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None 12. DESIGNATION OF CITY CLERK'S OFFICE AS A PASSPORT ACCEPTANCE FACILITY BY THE U.S. DEPARTMENT OF STATE. In response to Council Member Heffernan's questions, City Clerk Harkless reported that her office will only be an acceptance facility and the State Department will issue the passports. She indicated that her office can handle this new responsibility alongside its current workload. Motion by Mayor Pro Tern Ridgeway to authorize the City Clerk to apply for designation of the City Clerk's Office as a Passport Acceptance Facility by the U.S. Department of State, Bureau of Consular Affairs. Volume 54 - Page 561 "Z"p3 C -3494 Weed Abatement Services (38) Passport Acceptance Facility (32) City of Newport Beach City Council Minutes November 13, 2001 INDEX Jim Hildreth, 120 The Grand Canal, expressed the opinion that this would take money away from the post office and should not be something the City should do. He noted that a $15 processing fee will be collected by the City which will generate $9,000 in revenue with $850 being used for postage and supplies. He stated that the postal service has been doing this for years and should not lose the revenue. Council Member Proctor commended the City Clerk for coming up with the idea and reminded everyone that this once could only be done by going to the Downtown Los Angeles office. He believed this is a wonderful service to provide the citizens of the community. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None K. PUBLIC COMMENTS Shirley Conger, 3033 Bayside Drive, stated that she is on the Airport Working Group (AWG) Board of Directors and thanked the City Council for its support of AWG in getting the message out about the need for keeping the cap at John Wayne Airport (JWA) and the need for an airport at El Toro. She stated that, without El Toro, JWA will be forced to triple its air traffic. She noted that it is a difficult time to talk about air passenger traffic, but the City needs to remain focused. She noted that the City has accepted the continued growth of air traffic at JWA for 18 years, but cannot be expected to absorb the expanding air traffic emanating mainly from the South County cities. She highlighted what AWG has done to inform the County about the two airports. Ms. Conger reported that the County accepted Environmental Impact Report (EIR) 573 and the Navy and the Federal Aviation Administration (FAA) agreed to issue the Environmental Impact Statement (EIS) early next year. She noted that there may be an initiative that opposes the airport and substitutes it for a central park, stating that this is in appellant court. She indicated that there will be an election in March 2002 if the court overturns the Superior Court decision that blocked the initiative. She emphasized that, in a political campaign, AWG cannot use public or taxpayer funds to fight this battle and noted that they will probably need private money to run a successful campaign within the next month. Michele Roberge, Executive Director of the Balboa Performing Arts Theater, invited Council to the "Taste of Christmas Pudding" on December 15, 2001, at the St. Mark Presbyterian Church. She stated that tickets are $15 for adults and $10 for children under 16, and can be obtained by calling 673 -0895. Charles Griffin encouraged Council to help them get an airport at El Toro and extend the limits at JWA. He indicated that it is his understanding that, in order to maintain the noise curfew after 2005, Volume 54 - Page 562 City of Newport Beach City Council Minutes November 13, 2001 1 the proposed settlement agreement would allow the runways to be lengthened 2,000 feet, the construction of four more gates, twice as many of the noisiest aircrafts, the use of the B -767 aircraft, an increase of 1.4 million annual passengers (MAP), and an increase in the noise and contour area by 300 %. Further, the agreement requires the City to pay for the EIR and any litigation that opposes it. He reported that the New Millennium Group has filed an initiative to extend the existing limits at JWA and reroute the runways at El Toro. He recommended that the public download the petition from their website, sign it, and send it in. City Attorney Burnham stated that some of Mr. Griffin's statements are untrue. He reported that the EIR which evaluates three potential scenarios for an extension of the settlement agreement does not assume any extension to the runways. He clarified that the stop -ways were required by the FAA and is not part of the usable runway for air carrier operations. He reported that none of the scenarios preclude the operation of the B -767, pointing out that this aircraft was soon to be part of the fleet when the settlement agreement was signed in 1985. He indicated that he looked at draft reports regarding the impacts of the three scenarios and reported that none of them results in a 300% increase of the 65 CNEL contour. Mr. Burnham stated that Council knows that the City is paying for the EIR and entered into a Memorandum of Understanding with the County to that affect. Council Member Proctor added that he sat on the Airport Commission for 17 years. He emphasized that there is absolutely no plan to extend the runway nor has there been an extension in either direction and agreed that the FAA required JWA to build the overrun for use during emergency stops. He reported that there is an airport committee that has worked tirelessly with Mr. Burnham to come up with the best solution for the City and residents of the community. Jim Hildreth, 120 The Grand Canal, read from a letter which indicated that he first met Council on December 12 when he made a plea during public comments regarding access rights and safety at the southwest end of The Grand Canal. He displayed pictures and expressed the opinion that, if Council is going to view safety concerns as a complete nuisance, he has a duty to continue with this matter. He stated that the structure that was removed had liability insurance coverage and was approved by State and City agencies for access rights, and believed that the City - installed ladder is a service ladder. He asked who this was installed for, if the Coastal Commission approved it, if the liability insurance on this structure is general or strict, and who is insuring the ladder, expressing concern that he will be the one who is responsible for it. Mr. Hildreth reported that a public structure for public access has to meet the Americans with Disabilities Act and believed that this structure does not meet this standard. Mayor Adams requested that staff look into the possibility of removing the ladder and the mooring. City Manager Bludau clarified that the first opportunity the City had to deal with Mr. Hildreth's situation was during a public hearing Council had for him. He pointed out that this Volume 54 - Page 563 City of Newport Beach City Council Minutes November 13, 2001 actually started when Mr. Hildreth illegally built a pier without a permit. Tim Strader, 3801 Inlet Isle, stated that Measure G will be on the ballot on November 20 and reported that the Daily Pilot and the Chamber of Commerce endorsed a "yes" vote on Measure G over the weekend. He thanked Council for approving the project so it could be put to a vote of the people, noting that this is what the Greenlight process calls for. He stated that the project will create 2,700 average daily trips a day, but clarified that only 10% will be coming into the City. He stated that this is about 270 cars which is the same as 30 houses. He reported that buildings do not create demands at airports, people do, and noted that the airport is at its maximum relative to the number of trips it can have. He indicated that demand at the airport will increase as more people come to the County. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Bromberg stated that he chairs the Council Redistricting Committee and reported that they will be bringing a recommendation and options to Council at a study session. Council Member Glover stated that she is on the John Wayne Airport Settlement Agreement Committee with Council Members Proctor and O'Neil. She reported that the committee sent out two letters to the public informing them of their activities and has received 4,700 response cards so far in support of the settlement agreement. She commended City staff on their superb job and indicated that this Council can make the settlement agreement happen. She reported that another letter is forthcoming in about 2'/ weeks. Council Member Proctor and City Attorney Burnham also commended Council Member Glover for her tireless efforts on this issue. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 14. PLANNING COMMISSION AGENDA FOR NOVEMBER 8, 2001. Assistant City Manager Wood reported that Item 2 (2315 Pacific Drive) was in substantial conformance and Item 3 (405 Dahlia Avenue) was continued. Regarding Item 4 (One Hoag Hospital), she indicated that the resolution was amended to eliminate the trips that were credited. She reported that, in order to use the trip credits again, another Traffic Phasing Ordinance study would be required. Regarding Item 5 (215 Carnation Avenue), the Planning Commission determined there was no reason to lower the height below what the Code allows for this district, adding that they were not concerned about the height when they saw the plan. Regarding Item 6 (MFR Height Limits in Corona del Mar), Ms. Wood reported that there was a proposal to initiate a code amendment to change the height restrictions. She indicated that the Commission continued this because this initially came from Council direction in 1998, but the Commission was concerned that this is not the direction the current Council wishes to follow. Volume 54 - Page 564 INDEX Planning (68) City of Newport Beach City Council Minutes November 13, 2001 N In In response to Council Member O'Neil's question regarding Item 6, Ms. Wood indicated that she is unsure how many properties this affects in Corona del Mar. Mayor Pro Tern Ridgeway believed that, in light of having to review the Local Coastal Plan (LCP), this will also need to be reviewed. He stated that he is unsure how the City can avoid the height issue and do the LCP at the same time. In response to Council Member Glover regarding Item 5, Ms. Wood stated that she can arrange a meeting to discuss current issues that include Council Member Glover, Council Member Proctor, Hoag Hospital, the Planning Department, and some of her constituents. Motion by Council Member O'Neil to receive and file written report The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None PUBLIC HEARING 15. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISES TO C & N WASTE SERVICES. City Manager Bludau stated that, at the last meeting, a resolution of intention was adopted and the ordinance which awards the franchise agreement under the same terms and conditions that has been awarded to the 18 other franchise holders had its first reading. He reported that the ordinance takes effect 30 days after adoption. Mayor Adams opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Mayor Pro Tern Ridgeway to adopt Ordinance No. 2001- 20 granting a Non - exclusive Solid Waste Franchise to C & N Waste Services. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None 16. CITYWIDE WAYFINDING & DIRECTIONAL SIGNAGE PROGRAM: OVERVIEW OF PROPOSED PROJECT AND RECOMMENDATION TO AUTHORIZE PROFESSIONAL DESIGN Volume 54 - Page 565 INDEX Ord 2001 -20 Non - Exclusive Solid Waste Collection Franchises (42) C -3495 BA -019 Citywide City of Newport Beach City Council Minutes November 13, 2001 SERVICES. Assistant City Manager Wood reported that one of the first times the City has heard about the need for better directional signage was during the study on how to enhance the Transient Occupancy Tax, noting that the consultant found that it is difficult for people who are not familiar with Newport Beach to find their way around the City. Further, the Economic Development Committee (EDC) Image Enhancement Subcommittee recommended that the City have a Citywide directional sign program. Ms. Wood added that, after the Balboa Peninsula plan was conducted, one of the recommendations from that was to provide better signage for the Peninsula. She reported that they presented designs to Council, but neither were acceptable. She indicated that the direction after that effort was to focus on a Citywide directional sign program. Ms. Wood reported that $50,000 is budgeted in the Capital Improvement Budget for this project, a Request for Proposals (RFP) was issued, five proposals were reviewed, and a committee composed of staff and EDC members interviewed the consultants. She . stated that they are recommending Hunt Design Associates for the project. She indicated that, in addition to directional signs, the scope of work includes providing consistent and attractive City entry signs, "Welcome to Newport Beach" signs, signs that will help people find their way through the City, and signs that will identify the unique commercial villages. Further, the scope also includes a sign removal program because there are so many directional and regulatory signs that are not coordinated throughout the City. She indicated that the City previously tried to tackle this on the Peninsula, but realized that it was a big job that needed consultant assistance. Ms. Wood reported that the proposals came in higher than budgeted and pointed out that they are also requesting a budget amendment for $39,785 to do the complete job that is proposed. She noted that the services are listed on Page 4 of the staff report. John Temple, Senior Design Associate from Hunt Design Associates, stated that they are a graphic design firm that has been in business for 25 years. He indicated that they specialize in signage and wayfinding, and that over half their work is with cities and in public areas. He believed that it is important to think about all the elements and how they work together to unify the system and enhance the image of the City. He stated that they work in phases (analysis and programming, designing, generating working drawings, fabricating, and installing). Mr. Temple showed a slide presentation of some of their projects in California and Kansas. He emphasized the importance of facilitating wayfinding since it is more likely people will make return visits and share their good experiences if it is easy to get around. He stated that they take their cue from the city they are working for and the public, and responds to what the city thinks its image should be. He indicated that they realize that the signs are being viewed by a wide range of people and assured Council that they try not to focus on only one group. He reported that they work a great deal with scale models and full -size mockups to help them visualize the product three - dimensionally and to Volume 54 - Page 566 INDEX Wayfinding and Directional Signage Program (38140) City of Newport Beach City Council Minutes November 13, 2001 INDEX help the client realize what the final product will look like. Mayor Adams stated that the City has a real need for signage; however, expressed concern that Hunt Design does not have a registered civil or traffic engineer on staff and there is no requirement in the contract for Errors and Omissions (E &0) Insurance. He pointed out that the State has given work purview for roadway signing to registered civil engineers and that the signs need to conform to State and local requirements. He expressed concern about having graphic designers deciding how and where street signs are to be placed, adding that Hunt Design is not qualified to make decisions about the removal of existing signs in the City right -of -way. However, he stated that he would support Hunt Design's efforts to improve the unattractive City entry signs and create unique signage for the village entries. Mayor Adams expressed the opinion that the only cities that do these types of signs are cities that feel they need a gimmick, while great cities have regular white on green guide signs. He stated it is his professional opinion that unusual, unique signs have no business in the City right -of- way and may create a liability problem because they do not conform to the Manual of Uniform Traffic Control Devices (MUTCD) and the State's design requirements. Further, it is unacceptable to have anyone without E &O insurance do designs and improvements that are going to go in public right -of -ways and affect the motoring public. He added that he is okay with the contract if the firm determines what needs to be signed and its general location. Mayor Adams believed that the City can save a lot of money by allowing the firm to define the program and have the City sign shop make and erect the signs. He expressed the opinion that he has never seen an effective guide program in any city in the country. Mayor Adams stated that the firm's involvement should be more akin to what they are doing for Los Angeles and the City should find a way to have City staff seal the drawings for public right -of -way improvements. He also emphasized that the site location plan and the drawings for the signs should be conducted and sealed by a licensed civil engineer. Council Member Glover stated that she likes a traditional sign and that simplicity is sometimes the best. Further, minimum signs are needed because there is sign pollution problems in many cities, including Newport Beach. She indicated that the City entry signs used to be wooden but were changed to unattractive, cheap signs. Mr. Temple reported that they do not have a civil engineer on staff; however, they have access to one as a subconsultant and could ensure that the drawings are sealed and signed. Council Member Glover stated that the firm needs to find a balance between engineering and design. In response to Council Member Glover's question, City Attorney Burnham stated that a signage program could give the City some protection under a design immunity theory but this might be difficult. In response to Council Member Bromberg's questions, Mr. Temple confirmed that the firm is willing to bring on a civil engineer and is open to carrying E &O insurance. Senior Planner Berger indicated that doing Volume 54 - Page 567 City of Newport Beach City Council Minutes November 13, 2001 INDEX either of these things would increase the cost of the contract. Mr. Temple stated that he would be willing to meet with staff and work through some of the issues if this is continued. He added that they are well versed in MUTCD and understand the principles behind it. He affirmed that they also understand the balance between the practical and aesthetics that are desired. Motion by Council Member Bromber¢ to continue this issue to the November 27, 2001, Council meeting with revisions to the scope of work/contract. Council Member O'Neil indicated that he is unsure if he would be prepared to vote on a project of this magnitude in two weeks in light of the scope of work issues. He believed that continuing this to the first meeting in January would be more appropriate if there is no urgency for the project. He also requested a clearer presentation since it was difficult to see the slides. He confirmed that the signs should be simple and uniform throughout the community, explaining that he is not in favor of having separate logos for each village. Amended motion by Council Member Bromberg to continue this issue to the January 8, 2002, Council meeting with revisions to the scope of work/contract. Council Member Proctor noted that the staff report indicates that the $50,000 allocation was not enough compensation for the requested scope of services. He asked if Hunt Design was the only firm that came within the price range. Ms. Wood agreed that the budget was not sufficient for everything staff and EDC wanted to accomplish. She indicated that they received calls from consultants asking if the City wanted them to report what their firm could do for that budget or show how much it would cost to do everything the City asked for in the RFP. Mayor Adams noted that staff is asking for a $36,000 augment. Mr. Berger added that some of the consulting firms indicated that they would have responded to the RFP if the City had additional funds available. He stated that, even though Hunt Design was the low bidder, he believed they were the firm that was going to give the City the best product. Council Member Heffernan noted that this is just the design phase and asked how much it would cost to build and remove the signs once they are designed. Mayor Adams stated that this could be a million dollar project depending on the complexity of the designs. Council Member Heffernan asked who will make the decision on what is implemented once the design comes back. Mayor Adams suggested that the City do a multi- tiered contract with different thresholds. Council Member Heffernan stated that there may be other projects in the City that can use the million dollars and believed that Council should make this initial decision before the City sends out the design team. Mayor Adams indicated that the City is concerned about helping visitors find their way around the City and believed that standard signs can be erected for $10,000 and some staff time. He noted that no one really talked tonight about the objectives of the program. Volume 54 - Page 568 City of Newport Beach City Council Minutes November 13, 2001 Mayor Pro Tem Ridgeway agreed that the program can be done fairly inexpensively and that the signs should be simple and tasteful. He stated that his district does suffer from a lack of signage, pointing out that the district has two piers and commercial villages, and that it is even difficult to find City Hall. In response to Mayor Adams' question regarding a sign inventory, Public Works Director Badum reported that the City has an extensive Geographical Information System (GIS) that includes an inventory of regulatory signs; however, it is not complete. Mayor Adams believed that a comprehensive review of all the signage needs to be conducted. Ms. Wood clarified that some of the signs that they want considered for removal or consolidation include regulatory signs. Mayor Adams added that necessary encroachment permits in State right -of -ways also needs to be addressed. Understanding that this is beyond the scope of this contract, Mayor Pro Tem Ridgeway noted that there is a large sign as you turn left onto Jamboree Road from Coast Highway that could almost be hit by sport utility vehicles. The amended motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None 17. NEW REGULATIONS ON STORMWATER AND URBAN RUNOFF: PROPOSED 5 -YEAR MUNICIPAL PERMIT. Assistant City Manager Mff utilized a PowerPoint presentation to report that any city or county that operates a storm drain system does so under a five year permit from the State. He stated that the permit tells how to protect conveyances (storm drain systems) and, in turn the bay and ocean, from the adverse affects of runoff. He stated that the Regional Water Quality Control Board reviews and issues these permits, and reported that the City owns and operates about 100 miles of storm drains. He showed an aerial photo of Coast Highway and Newport Boulevard in which a large storm drain dumps urban runoff from parts of Costa Mesa and Newport Heights into the bay. He added that this is the area where the City has some of its worst water quality problems. Mr. Mff reported that the regulation requires the City to develop model maintenance procedures for street sweeping; directs catch basin cleaning; has a detailed inspection permit that requires the City to inspect commercial, industrial, and construction sites; requires the City to integrate clean water provisions into the permit/planning process; requires the City to review the water quality ordinance to prohibit more discharges; requires a mandatory education program; and requires a Water Quality Management Plan (WQMP) for construction projects of a certain size. He stated that, if the WQMP does not work by October Volume 54 - Page 569 INDEX BA -021 Stormwater and Urban Runoff Regulations (40/51) City of Newport Beach City Council Minutes November 13, 2001 INDEX 2003 Countywide, the Regional Board will apply Best Management Practices (BMPs) that include the Standard Urban Stormwater Mitigation Plan (SUSMP). Mr. Kiff reported that one of the most controversial aspects of the permit is the fact that it does not require the SUSMPs immediately, unlike Los Angeles and San Diego Counties. Mr. Kiff indicated that inland cities tend to be upset with the provisions for commercial and industrial sites. He stated that, in many cases, the City will also be responsible for making sure catch basin cleaning and street sweeping occurs behind gated communities since they drain into the City's conveyances. Further, he expressed concern that residential areas are still excluded from the permit, but emphasized that the bay does not know whether urban runoff comes from a residence or business. Mr. Kiff reported that the program will cost the City about $200,000 a year for its activities to 2003, but believed that this can be reduced by switching around existing staff. He stated that the cost to existing businesses can range from $0 to over $500 depending on the size of the business; and the cost to developers and builders can be quite significant depending on size and scope of the plan. Mr. Kiff reviewed the recommendations and noted that the Harbor Quality Committee unanimously supported this at their Thursday meeting. Mayor Pro Tern Ridgeway stated that he is Chair of the Harbor Quality Committee and agrees with 95% of the recommendations. He believed that the cost to the City will actually be much higher because it will probably need to pick up the cost for public sidewalk cleaning since businesses may stop doing it if they are cited for hosing them down. In response to his questions regarding SUSMP, Mr. Kiff stated that the recommendation is to ask staff to come back with a cost analysis. Mayor Pro Tem Ridgeway stated that onsite treatment can be done without installing massive structures under parking lots. He noted that land is so terribly expensive that some projects will not go forward if this is imposed. He believed that the City is prepared to lead by example and support the National Pollution Discharge Elimination System (NPDES), but stated that the letter should not be so aggressive. Council Member Glover agreed that the City will need to be responsible for cleaning public sidewalks if small businesses are not allowed to do this. She believed that the Peninsula needs its sidewalks washed everyday and that this would greatly improve the area. She stated that this regulation would affect all the old areas of the City. Mr. Kiff clarified that it is being recommended to change the ordinance to prohibit all wash downs of commercial areas, including municipal facilities. He indicated that businesses can clean its sidewalks, but they just have to keep it out of the storm drain system by sand bagging and vactoring the debris. Council Member Glover believed this was too onerous. She pointed out that there are a lot of people in the City that still wash their cars themselves and should have the right to do this. Mr. Kiff reported that the fecal coliform TMDL needs to be met by 2014 or the City is subject to significant fines. Volume 54 - Page 570 City of Newport Beach City Council Minutes November 13, 2001 INDEX Council Member Bromberg stated that the Harbor Quality Committee is made up of citizens that are very concerned with what happens to the bay. He reported that 49% of the Balboa Island Business Improvement District (BID) money is used for sidewalk cleaning and asked if people are going to continue to do this if it will cost money. He noted that not all businesses belong to a BID. He stated that, if the other BIDS are not using money to clean the sidewalks, he suggested they take a look at it. He agreed that the City does have the responsibility to set a standard and that the City can help out with sidewalk cleaning if it turns out that the BIDS would need to spend 75% of its money on this. He emphasized that there is no reason this cannot become one of the City's highest priorities since the bay is its No. 1 resource. He suggested providing businesses with incentives. He indicated that he is supportive of being as aggressive as possible because Newport Beach is a coastal city. Mayor Pro Tern Ridgeway agreed that the City needs to lead by example, but pointed out that the City already came down on the harbor boating industry pretty hard a few years ago relative to water quality. He noted that the City is doing this again with de- ionized water and believed it would be difficult to collect that water before it goes into the bay. He asked if the City will now be placing booms at the piers and reported that the sidewalks around Cassidy's is deplorable. He reiterated that the recommendations will probably cost the City money and believed that the older areas of the City will suffer, not Fashion Island or the areas owned by The Irvine Company because they can charge this back to its tenants. He stated that he will support the letter, although he would prefer that it be toned down. He stated that he would rather let the Regional Board come back to the City on SUSMP, but this does not mean that the City would not encourage it. He pointed out that some of the restaurants cannot afford grease interceptors and that the City needs to be careful with its economic base. Jack Skinner, 1724 Highland Drive, stated that this started in Los Angeles under pressure to strengthen urban runoff regulations to make the water better. Further, the same issue has come up in San Diego and reported that they drew up a similar ordinance. He pointed out that Los Angeles and San Diego currently have stronger ordinances than what is being proposed. He agreed that this is a strong ordinance but emphasized that it is coming from the Regional Board. Mr. Skinner believed that the City should have an interest because one -fifth of the County drains into the bay. He explained that the ordinance will apply to all the cities in the watershed that are causing the pollution problems in the bay. He agreed that this is a tough decision, but noted that washing down the sidewalks was already in the previous permit and is now just being tightened up since it has not really being enforced. He expressed his concern relative to the words "maximum extent practical" appearing throughout the document since no one knows what it means. He stated that the City needs someone like Mr. Mff to protect the water. Bob Caustin, 471 Old Newport Boulevard, #200, Defend the Bay, presented Council with correspondence that he sent to the Regional Board. He thanked Mr. Mff for doing an incredible job in trying to tighten up the ordinance; however, he feels it still has not gone far Volume 54 - Page 571 City of Newport Beach City Council Minutes November 13, 2001 INDEX enough because it will still be the lowest standard of any Southern California coastal county. Further, he believed this will give the Regional Board the ability to conduct lax permitting processes in Riverside and San Bernardino Counties. He requested that, if Council signs the letter, to postpone the endorsement of the rest of the issues because there are many things that need to be tightened. He reported that Defend the Bay has been in negotiations with the County and Regional Board, and concluded that the permit is willfully inadequate and will probably be litigated by environmental groups like Defend the Bay. He believed that, if people think differently to prepare for the future, the City can get people to clean up the water that enters the bay. Council Member Glover stated that she needs to sit down with staff for several hours to be briefed on each of the issues in order to make a decision. Council Member O'Neil agreed and stated that everyone recognizes that this is an extremely important issue for the City. He noted that Mr. Caustin presented Council with a letter that he sent to the Regional Board, but emphasized that he cannot expect Council to understand its content at this time. Mr. Caustin stated that his points are somewhat different than those made in the staff report and reported that the deadline to submit written comments is this Friday. Mr. Kiff reported that there is a deadline for written comments; however, the deadline for comments is actually Monday, November 19. The Board will consider those comments over 30 days, hold a public hearing, and adopt the permit on December 19. He stated that the City can send its position to the Regional Board on December 19, but believed they like to hear comments in advance. Council Member O'Neil indicated that he does not mind making comments to the Regional Board in general, but stated that he cannot understand the complexity of all these issues at this time. Mr. Caustin stated that the reason he gave Council a copy of the letter is because Page 3 basically states that, "What is appropriate for Los Angeles County may not be appropriate for Orange County and the maximum extend practical standard for Orange County should be based upon what is appropriate for Orange County." He expressed the opinion that there is no real reason that both counties cannot have the same laws and rules, except that they are trying to figure out a loop hole. Mr. Caustin believed that the City's comments would be quite compelling, adding that the City will have no hope at getting anyone else to support it if it cannot weigh in to strongly support the San Diego and Los Angeles standards. Council Member O'Neil pointed out that this is not consistent with what is being proposed tonight. Mr. Caustin clarified that he is proposing that the City hold off on endorsing the rest of the permit so it can be made stronger. Motion by Council Member Glover to 1) continue this issue to the December 11, 2001, Council meeting; and 2) direct the City Manager to send correspondence to the Regional Water Quality Control Board, Santa Ana Region, informing them that the City will be presenting input but it will be delayed and requesting a continuance of this issue before the Board. Volume 54 - Page 572 City of Newport Beach City Council Minutes November 13, 2001 fF 1 . Council Member Heffernan noted that a waiver issue regarding the sewer plant previously came before Council, but Council could not make a decision. He stated that other cities went ahead on it and the City came in midstream even though the City is directly impacted by what happens at the Santa Ana River facilities. He indicated that now Council has a new water quality issue that has been addressed by staff, and Council wants to pass on it when we are the ones directly affected. He stated that, if the City does not send a message, it will appear that it is not important. He emphasized that there are cost benefits to everything, noting that Council just had a discussion about possibly paying $1 million for signs when it is now only talking about $200,000 or more to keep the water clean. He stated that he is supportive of endorsing the letter tonight and submitting it to the Regional Board. He added that, if the City cannot support the third version of this, it is sending the wrong message since we are at the end of the pipe for one- fifth of the watershed cities. Council Member Bromberg stated that the Harbor Quality Committee spent over an hour on this even though they understood the issues prior to discussing it. He indicated that it is important for everyone on Council to understand the issues and that this should go to the Regional Board with a unanimous vote. He added that, if Mr. Kiff is confident that the City can have its comments considered, he will support the motion to continue this issue. Mr. Kiff stated that this is the third version and was only made available on November 5. He indicated that the City can request that the Board postpone the hearing to January. He added that no other city in Orange County has had this before them, believing that the City is one of the first to even agendize it. Council Member Heffernan indicated that he heard about this issue from his neighbor and expressed his surprise that this is the third version of the ordinance and that tonight is the first time this has been before Council when the Orange County Business Council has known about this for months. He asked why Council is hearing about this so late and will not be able to respond on time. Mr. Kiff explained that the ordinance is an 80 page document and that it has taken him three weeks to work on it. He agreed that it should have been before Council earlier, but emphasized that the last version was completely changed on November 5. Council Member Heffernan stated that he was more concerned that it was known that the five -year permit was going to change and it did not come before Council to address it. He stated that Council should be tipped off sooner to address it in a more orderly way. City Manager Bludau stated that staff was not sure what version to bring to Council, especially if it was not going to be part of the final permit requirement. He added that it was difficult to determine at what point in time to involve Council and was even more complicated since it was brought before the Harbor Quality Committee to have some community consensus prior to going before Council. The motion carried by the following roll call vote: Volume 54 -Page 573 City of Newport Beach City Council Minutes November 13, 2001 Ayes: O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: Heffernan Abstain: None Absent: None S18. APPOINTMENTS TO ENVIRONMENTAL QUALITY AFFAIRS COMMITTEE. Motion by Mayor Pro Tem Ridgeway to continue this issue to the November 27, 2001, Council meeting. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Noes: None Abstain: None Absent: None P. MOTION FOR RECONSIDERATION - None. Q. ADJOURNMENT - 9:40 p.m. The agenda for the Regular Meeting was posted on November 7, 2001, at 1:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on November 9, 2001, at 2:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 54 - Page 574 INDEX CITY OF NEWPORT BEACH City Council Minutes DRAFT Special Meeting November 16, 2001 - 2.38 p.m. INDEX ROLL CALL Present: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor (arrived at 2:41 p.m.), Mayor Adams Absent: None 1. DISCUSSION WITH SUPERVISOR JIM SILVA. Supervisor Silva stated that he has met with the councils from all the new cities that he represents and assured Council that he will always take their calls and meet with them if he is available. He reported that he also hosts a quarterly mayors' breakfast to talk about issues and have questions answered. He indicated that he represents the Cities of La Palma, Cypress, Los Alamitos, Seal Beach, Huntington Beach, Costa Mesa, Newport Beach, Fountain Valley, Stanton, and portions of Garden Grove, and stated that he represents the most number of people (600,000) and the most cities. Supervisor Silva reported that, even though the County is legally out of the bankruptcy, it is still about $1 billion in debt. He noted that people blamed the County for the bankruptcy, but clarified that the County also has an elected Independent Treasurer and Auditor Controller. He stated that he was the person who suggested that the Board establish an Audit Oversight Committee that meets with the Treasurer and monitors the Treasurer's Department. He reported that most of the cities and school districts have been paid back its investment pool portion. Regarding the budget for fiscal year 2002.2003, he reported that it may be down for the first quarter. Supervisor Silva indicated that, in addition to being on the Board of Supervisors, he is also on the Executive Board of the California State Association of Counties (CSAC) which meets quarterly. He reported that they have spent a lot of time working with the Governor's budget director and have determined that next year's outfall could be between $9 billion to $14 billion. He stated that everyone is concerned with this because they balance their budgets on local agencies. Supervisor Silva reported that, in 1988 -1989, the County entered into an agreement in which the State reimburses $80 million of the County's cost for flood control improvements. He stated that the County spent $160 million, but the State has yet to fully reimburse the County. He stated that, in 1998, he approached Governor Wilson who indicated that he will be recommending that the County be paid back. Supervisor Silva also reported that, after he was elected, the State entered into agreements with counties to take over court - related revenues and their financial responsibilities. He stated that Volume 54 - Page 575 City of Newport Beach Special Meeting November 16, 2001 INDEX the State took the revenues, but did not want to pay court expenses. He agreed that the State has a history of taking over programs and not following through. Regarding the El Toro reuse, Supervisor Silva reported that they are waiting for the Navy Department to issue a record of decisions and that a hearing is being held today in San Diego relative to the Great Park Measure. In response to Council Member Bromberg's question, Supervisor Silva indicated that CSAC is trying to propose a constitutional amendment for the ballot to prevent the State from going after the municipalities' share of property tax money. He indicated that he has invited one of CSAC's analysts to attend a Board workshop and that CSAC is trying to get the 58 counties to generate a proclamation of support. He added that the League of California Cities is doing the same. Noting that the State owes the County $80 million for flood control improvements, City Manager Bludau asked why the County does not sue the State. Supervisor Silva stated that it is hard to sue the State, especially if the County will be asking them for assistance in other projects. He clarified that the County has been reimbursed $40 million so far. Council Member O'Neil stated that Council appreciates and supports all the work Supervisor Silva has done over the years in connection with the E1 Toro airport effort. He added that Supervisor Silva understands the City's concern that, without that facility, it will lead to the further expansion of John Wayne Airport (JWA). Supervisor Silva believed that a lot of people throughout the County voted for Measure F because they did not want a jail or toxic dump in their backyard and that Measure F was not a true indicator of how people feel. He stated that people in Cypress and La Palma have told him that they would use LAX before using E1 Toro, and have commented that they feel a lot of the freeway truck traffic will decrease by having an airport at El Toro. He emphasized that residents also have concerns about the financial picture involved with the Great Park. Council Member Proctor indicated that he has been friends with Supervisor Silva for a long time and that he is pleased that he is officially the City's representative. He believed that the Board has done an amazing job of putting the bankruptcy and a lot of other issues behind them. He also expressed his appreciation that Supervisor Silva has always been there for the City. Supervisor Silva reported that, when the County was going through its financial crisis and the excess sales tax was on the ballot, he met with a Wall Street rating agency to try to restructure the debt by getting a better rating. He explained to them that, by voting "no" on the excess sales tax, Orange County was not saying it would not pay its debt, but was saying that they have a strong economy and will be able to pay the debt without a tax increase. He reported that they accepted this and the County received a better rating. Supervisor Silva noted that the County was economically hit in the 1990s primarily because it was not getting defense contracts. He pointed out that the government tried to make sure that they did not close Volume 54 - Page 576 City of Newport Beach Special Meeting November 16, 2001 fF 1 . military bases in areas that did not have a strong economy. Council Member Proctor stated that all the cities are lucky to have him as their Supervisor. He added that Supervisor Silva's background will probably help preempt some of the economic problems after the State looks at its deficit and tries to find a way to pay it off. Supervisor Silva indicated that he is continually trying to balance jobs with the economy, and with a clean environment. Council Member Glover stated that the City is fortunate that Supervisor Silva comes from a beach community. She noted that the urban runoff issue has become a dominant issue, but balance is still needed. Supervisor Silva stated that he lives in a harbor area and does see everything float by the docks after a storm. He indicated that the Army Corps of Engineers got involved years ago in Huntington Beach and raised properties in the flood zone by ten feet; however, people still have fertilized lawns that drain directly into the channel. Supervisor Silva indicated that urban runoff is a Countywide problem that everyone needs to solve together. He stated that the public needs to be made aware of this problem, adding that Assistant City Manager Kiff is probably one of the top people on this issue. Mayor Pro Tem Ridgeway noted that the City is now facing a lot of the same water problems with the NPDES permit that is issued by the Regional Water Quality Board through the County. He indicated that there has to be a balance between keeping clean water and maintaining small businesses. Supervisor Silva noted that, even though this is a regional issue, it needs to be solved locally or else the State will come in, which can be expensive. City Manager Bludau asked if the County is okay with the standards and requirements involved with the NPDES permit. Supervisor Silva indicated that there is still debate. Mayor Pro Tem Ridgeway added that November 19 is the last day for the Regional Board to receive comments on the permit and noted that an appeal is being heard in San Diego at the State level. He believed that the larger issues are development and new businesses. Mayor Adams reported that the City was unsuccessful in getting an extension from the Regional Board on this until the first of the year, noting that Council only had a few days to review the 80 page document. Mayor Pro Tem Ridgeway reported that the City is the only entity that he knows of that is going to support the permit, with modifications, and pointed out that over a hundred letters have been submitted. Supervisor Silva emphasized that we need to find ways to solve these problems, feeling that money is not the only solution, and that people are going to have to change. Supervisor Silva reported that, in addition to sitting on the Board of Supervisors, he is also on the Air Resources Board, the Local Agency Formation Commission (LAFCO), and the Sanitation District. He stated that he spends about 25% of his time in Sacramento; 20 hours a week in meetings, not including preparation time; and every other month for three to four days in Washington, D.C. for the El Toro reuse issue. Mayor Pro Tem Ridgeway thanked Supervisor Silva for his support, adding that he has had many opportunities to talk with him about El Toro issues. Mayor Adams also thanked Supervisor Silva for spending time with Council, Volume 54 - Page 577 City of Newport Beach Special Meeting November 16, 2001 especially after highlighting all his time commitments. He stated that they are excited that he is the City's representative and announced that snacks will be provided in the lobby after the meeting and before the Closed Session to celebrate Supervisor Silva's representation of the City. PUBLIC COMMENTS — None. CLOSED SESSION — 3:40 p.m. CLOSED SESSION REPORT — None. ADJOURNMENT — 4:00 p.m. The agenda for the Special Meeting was posted on November 15, 2001, at 1:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 54 - Page 578 INDEX