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HomeMy WebLinkAbout01 - Minutes 6-25-02City Council Meeting July 9, 2002 Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session DRAFT June 25, 2002 - 3:30 p.m. INDEX ROLL CALL Present: Heffernan, O'Neil (arrived at 4:30 p.m.), Bromberg, Proctor, Mayor Ridgeway; Glover (left at 5:30 p.m.) Absent: Adams (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR — None. Council Member Heffernan requested clarification be given to him at a later time regarding the Verizon Cell Site at 1155 Camelback Street (Agenda Item No. 22). BUDGET REVIEW FOR FY 2002 -2003 INCLUDING CAPITAL IMPROVEMENT PROGRAM (CIP) (contd. from 5/28/02 & 6/11/02). Community Services City Manager Bludau reported that there are no changes regarding the administrative budget. He indicated that he has not appointed an Acting Director, but stated that the four division chiefs are reporting to him. Arts and Grant Coordinator Barbier reported that the budget for arts and culture is basically status quo and that there are no huge personnel increases. Regarding Account 8010, she noted that they have reviewed the arts organization grant requests and are recommending that about 17 organizations receive funding. She stated that this will come before Council in July for approval. She reported that there is a $1,500 increase in the budget for the Sister Cities program (Account 8257). Mayor Pro Tem Bromberg stated that he requested that $10,000 be added to the wish list for this program. Administrative Services Director Danner noted that, on the checklist for approval this evening, there is a supplement of $5,500 to bring the program to $10,000. Recreation Superintendent McGuire reported that there are no major changes to the recreation division budget, but it will be hard to compare last year's budget to this year's budget because they added two new accounts to help them track facility maintenance and to split the youth programs into sports, after school programs, and camps. She indicated that there are now nine accounts in the recreation division. She stated that there are no new full -time staff members being proposed; however, an additional $16,000 was included for part -time staff (Account 4380) to cover additional vacation camps and the second site for the summer day camp on the Balboa Peninsula. She reported that this is the first week of the camps and that Volume 55 - Page 225 2002.2003 Budget Review (40) City of Newport Beach Study Session Minutes June 25, 2002 IIC III W'l they are full at both sites. Regarding Account 4340.8070, she noted that it has been increased by $52,000 because of the expected energy and rental charges for the school swimming pools. Further, Account 4340 -8080 is up about $10,000 in order to pay the instructor since there are more students. Ms. McGuire reported that Account 4380 -8080 was increased about $15,300 to include the summer camp bus trips that happen every Wednesday during the ten weeks of operation during the summer. She stated that the whole division has a total of $5,400 for training (Account 8105) 11 full -time and up to 45 part-time employees. She noted that the 8200 account was reduced by $3,000 this year. In response to Mayor Ridgeway's questions, Ms. McGuire confirmed that the people who use the buses are charged for the use. She stated that all of the fees she mentioned also have increases in revenue to offset the increased costs. She added that this is also true for the staff increases. Senior Services Manager Jardine -Haug reported that, instead of having one division, it was broken into two divisions this year in order to track the transportation program. She indicated that the overall budget increase is due to the $68,000 Orange County Transportation Authority (OCTA) grant to purchase a fourth vehicle. She reported that Account 8023 reflects the cost of the vehicle when it will be purchased in July. She stated that the OCTA reallocation is for ten years and will be reevaluated every three years since it is based on population. In response to Mr. Bludau's question, Ms. Jardine -Haug confirmed that Newport Coast residents attend programs and also request transportation. Assistant City Librarian Gaetano stated that the library budget is fairly status quo. She indicated that there are eight accounts, but Accounts 4060, 4070, and 4080 are either funded by grants, fundraising, or contributions. She stated that there are no proposed employee increases. She reported that the maintenance and repair account across the board (Account 8030) is budgeted at $72,844; and the professional and technical services account (Account 8080) is budgeted at $93,801. She noted that the materials budget (Account 8260) increased $37,000 and reflects the money that was received last year for the annexation. She reported that there are 115 library employees and that 36 are part -time employees. Council Member Heffernan asked how the new Mariner's Branch Library affects next year's budget if it is approved. Mr. Bludau indicated that the library would be under construction so there would be no personnel costs. Public Works Public Works Director Badum stated that there are no big changes in the Public Works Department budget. He reported that minor personnel changes have occurred to better serve the public and the programs. He stated that their continued focus is on the Capital Improvement Programs (CIP). He indicated that three Senior Engineers have been reclassified to Principal Engineer positions over the past year due to the lengthy study with the Human Resources Department. Further, an Engineering Technician Volume 55 - Page 226 City of Newport Beach Study Session Minutes June 25, 2002 1R position in the Traffic Division has been upgraded to a Junior Engineer because there will be more emphasis in traffic signal coordination. He reported that the two changes cause minor increases in the salary budget, but they are offset by the decrease in professional services (Account 8080). He indicated that last year's budget was due to the ambitious CIP projects which are nearly complete. He believed that they will not have as much difficulty delivering the projects this year. He noted that his department will probably see some retirements this year so there may be additional salary savings occurring with their replacements. Mayor Ridgeway asked when a Traffic Phasing Engineer will be hired. Mr. Badum stated that the Junior Engineer is already working on traffic related issues. He added that they are in the process of developing a Request for Proposal for a traffic phasing study and that Transportation/ Development Services Manager Edmonton is working on the scope of work. Mr. Bludau noted that this is part of a staff priority to look at signalization to get traffic to flow more smoothly. He stated that staff will first gather data and then have a consultant review the data and make recommendations. He indicated that they hope the recommendations are implemented by the first of the year. Utilities Department Utilities Director Davidson utilized a PowerPoint presentation that Administrative Manager Deutsch generated. He reported that there are four divisions in the department (Electrical, Oil and Gas, Water, and Wastewater) with 50 full -time employees and 9.8 [full -time equivalent (FTE)j part -time employees. He indicated that there is a 3.1% increase over last year's budget which represents a 2% increase in salaries and benefits; and a 1.1% increase in operating expenses. Regarding the Electrical Division, Mr. Davidson reported that the budget is $1,068,497 which is a 7.5% increase over last year's budget. He stated that they are recommending adding a part -time employee to the division. He indicated that 29% of the budget is for salaries; 9% for benefits; 4% for vehicle equipment maintenance and replacement; 51% for power costs for mainly streetlights; and 7% for operating expenses. He reported that they are recommending the addition of one -half of a part -time employee from the Youth Employee Program (YEP) to update the 6,000 streetlight pole identifications and to inventory them into a GIS conversion. He indicated that they also added a City Hall generator maintenance fund for $6,000 (Account 8080) which was transferred from the Fire Department since they feel it was more appropriate for the Electrical Division to maintain the contract. He reported that the largest expenditure item in the Electrical Division budget is for utilities (Account 8110) in the amount of $545,000, which is a $45,000 increase due to the annexation and energy cost increases. Regarding the Oil and Gas Division, Mr. Davidson stated that the budget is $351,887 and that there is really no measurable increase from last year's budget. He reported that services and contracts make up 25% of the budget, energy to run the operation makes up 16 %, operating expenses make up 23 %, and royalties make up 36 %. He stated that large expenditures include Volume 55 - Page 227 City of Newport Beach Study Session Minutes June 25, 2002 INDEX the Sampson Oil Company which is a contract for $72,000 (Account 8080); energy at $55,000 (Account 8110); royalty payments to Armstrong Petroleum, Area Energy, and Southern Pacific at $15,000 to $20,000 a year (Account 8250); royalties to about 200 property owners since oil well casings run under their homes at $5,000 to $10,000 (Account 8250); and AQMD emission fees at $10,000 (Account 8250). Mr. Davidson reported that the Water Division is the largest division of the four at $13,353,191 which is a 2.9% increase. He indicated that salaries and benefits represent 22 %; vehicle equipment maintenance and replacement represents 2 %; energy represents 10 %; debt payment on the bond is about 12 %; purchasing imported water represents 19 %; purchasing water from OCWD is about 17 %; City services through the General Fund represent about 10 %; and the operating expenses are about 7 %. He reported that the vehicle equipment maintenance budget is $299,612 (Accounts 8022 and 8024); the energy budget is $1.3 million (Account 8110) which is a $35,000 increase; water purchases total $4,930,000 (Accounts 8295, 8296, and 8297) which is about a $62,000 increase; and City services provided by the General Fund is about $1.3 million (Account 8330). Mr. Davidson reported that the Wastewater Division budget is $1,759,471 which is a 6.9% increase. He indicated that salaries represent about 41% of the budget; benefits represent about 14 %; vehicle equipment maintenance is about 14 %; utilities for energy costs is about 3 %; City services is about 17 %; and the operating expenses represent about 11 %. He stated that vehicle equipment maintenance and replacement is about $235,000 (Accounts 8022 and 8024); energy is about $49,000 (Account 8110); and City services is about $301,000 (Account 8330). He reported that the new programs include the wastewater root cutting program (Account 8155) for $8,000 a year and the computerized wastewater operation system (Account 8184) for $10,000. In response to Council Member Heffernan's questions, Mr. Davidson reported that the Newport Coast annexation does not affect the water and sewer operations since Newport Coast is serviced by the Irvine Ranch Water District (IRWD). He indicated that the City acquired 20 to 30 streetlights when Newport Coast was annexed. Mr. Davidson requested that Council add the purchase of a $98,000 sewer/ water main video inspection and recording system for pipe inspections, and the purchase of a $45,000 portable vacuum system for sewer /water operations to the checklist. Mr. Bludau stated that he and the Finance Director also recommend adding the two items to the checklist. In response to Council Member Heffernan's questions, Mr. Davidson stated that the City fixes all the sewer problems they uncover since it is owned by the City. He indicated that they have a budget of $30,000 to $40,000 to fix problem areas during the year. He confirmed that the program is not new, but the proposed video camera will replace an existing 20 year old camera. Mr. Bludau noted that Agenda Item 11 enters into a contract that would scope about 25% of the sewer system Citywide. Council Member Heffernan expressed concern that, once a problem is uncovered, the City may not have enough money to do something about it. Mr. Bludau stated that this will Volume 55 - Page 228 City of Newport Beach Study Session Minutes June 25, 2002 INDEX help them prioritize which portions of sewer lines need replacing. Mr. Danner reported that there is about $3 million in the Reserve Wastewater Fund. Mr. Davidson reported that the City's camera is used throughout the year, whereas the contract is for three months. He added that the proposed water main video system will have a recording device and the purchase includes all the necessary equipment. He reported that the system will be installed in a wastewater utility van and can also be used for storm drain, water main, and wastewater main inspections. He stated that 70% of the funding will come from the Wastewater Enterprise Fund and 30% from the Water Enterprise Fund. He indicated that current personnel will operate the system. Regarding the portable vacuum system, Mr. Davidson stated that it will be similar to what General Services will be purchasing for their storm drain filter operation. He indicated that this could be used for an emergency response portable system which they do not have now. In response to Tom Hyans' question regarding page 207 of the CIP budget, Mr. Badum stated that they are trying to televise the entire wastewater system over a four year period to determine the condition of the existing system. Mr. Davidson reported that Glendale is on a program in which they televise their entire system every two to three years. He stated that this is a new program due to the new EPA regulations. Mayor Ridgeway pointed out that, in conjunction with the Orange County Sanitation District (OCSD), everyone has to provide additional information to their Sewer Master Plan. Mr. Davidson clarified that tonight's agenda item covers the first year of the four year program and will cover 50 miles of the 200 miles of City owned sewer main lines. Dolores Otting asked what will happen to the old camera if the new camera has glitches. Mayor Ridgeway indicated that the City will not be keeping the old camera and noted that it does not record. He added that the camera is almost worthless if it does not record. Barbara Johnson stated that she is a resident of the City and a formerly - elected School Board Trustee. She stated that page 7 of the Newport Coast pre- annexation agreement states that $7 million is supposed to be transferred into the building account, but asked where it is in the budget. Further, she asked where the $5 million is for the Newport Coast community center; where the reserve dollars are for the defense costs and adverse judgments in the Trenton Veches matter; and where the money is for the purchase of the Orange Julius building. She also asked how much the Newport Coast slope maintenance will cost and when the City will start paying these costs; what the true Newport Coast costs are to the City based on a 1.5% return on the $15 million paid to the City by IRWD versus the City's share of property taxes; what the ongoing costs are for the John Wayne Airport (JWA) consultants; what the costs are today for the airport attorneys per month and how long are those projected costs supposed to continue; and where in the budget is the money for the additional employees needed in General Services for Newport Coast's maintenance and water quality operations. Ms. Johnson continued by asking if the Fire Department budget takes into account that this is already fire season; where the Volume 55 - Page 229 City of Newport Beach Study Session Minutes June 25, 2002 INDEX $2.5 million federal grant money is for the Big Canyon Reservoir cover and what happens if the City does not receive the grant money; and why the City has an Economic Development Committee but not a Budget Committee. Ms. Johnson requested that the City reinstate a Budget Committee with resident representation. Regarding the $7 million and $5 million transfers, Mr. Bludau stated that no budget transfers are going to happen this year but they will be ongoing. He indicated that the City received $15 million from IRWD this year, will get another $5 million in two years, and another $5 million in four years. He added that it is unsure if a community center will be built in Newport Coast and indicated that this is for the Newport Coast residents to decide. Regarding the Orange Julius building, he stated that the building is no longer for sale. He reported that it would be another 12 months before the City knows what revenues it will receive from Newport Coast and that no property taxes have been received, except a portion of the property taxes received from the Fire District. He indicated that they heard two weeks ago that about 25 homes a month will be released by The Irvine Company and so those property taxes will be coming online at different times. Mr. Bludau reported that the budget contains $500,000 for airport consultants and is reflected in the Council portion of the budget. He agreed that it is fire season, but nothing extra is budgeted since it is always included. He indicated that he will try to address the other questions in time. Mayor Ridgeway requested that he also send copies of the response to Council. Council Member Heffernan asked if there is a budget reserve allocated for the Newport Coast slope maintenance. Mr. Danner stated that there is nothing included in the budget for that at this time since the cost is not known. He indicated that, once it is agreed to, the money would come out of the City's reserves, not from the IRWD money. He stated that the last number he heard was $250,000. Council Member Glover stated that, when she first came on Council, the City had a strong committee system and that it was seldom that an issue did not have a hearing. She indicated that it was decided, about four years ago, not to have the various committees. She stated that she chaired the Finance Committee, spent hours on the budget, and had consultants review all the positions and programs. She indicated that having a Budget Committee with representatives from the community was discussed four or six years ago, but a conclusion was never reached. She stated that she has mixed emotions about this because committees sometimes come in with numbers greater than what Council would recommend. She believed that the City had the strongest committee system in the County and noted that Council will be very different after the November election. She stated that she is not a strong advocate for either system and is not opposed to citizens being on a Budget Committee, but they also have to be as vigilant as Council. Mr. Bludau stated that the budget does not include money for every contingency. Further, it does not include money for slope maintenance even though the City knows it is coming. He clarified that this does not mean the public will not know how much it will cost because it will be placed on the regular agenda since Council will need to appropriate the money. He noted Volume 55 - Page 230 City of Newport Beach Study Session Minutes June 25, 2002 that a budget is just a best guess of the expenditures and revenues, and that the City will have unanticipated things happen as the year unfolds. Further, things will not get done that were anticipated. He stated that it is a changing document with a public process for when the document changes. Mayor Pro Tem Bromberg noted that, in the Police budget, there is a Lieutenant✓Legal Advisor whose compensation package is $151,000 a year. He questioned the propriety of having a legal advisor in a police department of the City's size. Captain Henisey reported that Lt. Hyams serves as Lieutenant of the department, but his primary task is as a Legal Advisor who reviews everything from personnel investigations to department contractual obligations. He stated that he also supervises the Professional Standards Unit and participates on the California Peace Officers' Association (CPOA) to be aware of legal issues, court findings, and cases. He added that Lt. Hyams conducts training and provides legal bulletins to the entire department. He stated that he tested for the position and earned the rank of Lieutenant as any other person in the department would do and added that he also has a doctorate degree in psychology. He confirmed that his full -time job and offices are at the Police Department. Mr. Bludau noted that, if Lt. Hyams uses the entire 2,080 hours a year giving legal advice, the $151,000 equates to $72.501hour as opposed to getting outside legal counsel. Mayor Pro Tem Bromberg stated that he only questions this because the City privatizes a lot of the individuals at the Police Department and the City has a City Attorney's office. He believed that the City would not be spending this amount if it was contracted out. He noted that departments like the Los Angeles Police Department and the Orange County Sheriffs Department have legal affairs offices while small departments generally do not. Capital Improvement Program (CIP) Public Works Director Badum reported that the CIP for 2002 -2003 is about $31.6 million for a little over 135 projects. He stated that the General Fund has about $3.4 million in CIP projects, of which about $1 million is for repairs and improvements to various City facilities, including City Hall, the Corporation Yard, the Police facility, recreational facilities, and public restrooms. He reported that there is about $500,000 in storm drain improvements that will supplement the paving project on Balboa and Newport Boulevards between 16th and 26th Streets. He noted that the area sidewalk, curb, and gutter program; alley replacements; and bikeway and parking lot improvements total about $650,000. He stated that there is an economic development project in Mariners Mile for $300,000 which includes the beautification of Coast Highway and various streets in the area. He noted that there is close to $800,000 for various park improvements and another $135,000 in software and computer enhancements that facilitates the functioning of City Hall and its departments. Mr. Badum reported that there is still $1.5 million from the Oil Spill Remediation Program that will be used for the Corona del Mar Beach improvements, Marine Center at Shellmaker Island, improvements to ocean safety operations, and ocean front walkway, lighting replacements, and beach access ways. Mr. Badum stated that there is about $2 million in the CDBG fund and the bulk of it will be going to the Balboa Village Phase II Project which includes Volume 55 - Page 231 City of Newport Beach Study Session Minutes June 25, 2002 INDEX Street and the ocean trout walkways. Regarding the Tide and Submerged Land Fund, Mr. Badum reported that it includes about $1.3 million for the water quality programs, oil fill improvement program, Balboa Island bay front repairs, and Balboa Village community center design which will house a new Junior Lifeguard facility and community meeting rooms. He indicated that the Fire Department requested this. Mayor Ridgeway believed that the beach access walkways and the junior lifeguard building should be discussed at a joint study session since it needs community input prior to budgeting. Mr. Bludau stated that adding space to the Balboa restroom was discussed but it was too late to do. Mr. Badum added that they did not want to slow down the restroom replacement project, but there was discussion about trying to provide space for the junior lifeguards program. He stated that something will need to be done down the road and, while asking for money to look at designs, they will essentially be developing a concept which would involve a lot of public participation and Council input. He believed that a more permanent facility could be provided that also serves as a community building. He indicated that the current trailers are at the end of the pier, adjacent to the restrooms. Mayor Ridgeway noted that there was no previous public support. He asked if this is something that gets budgeted first and then gets public support. Mr. Bludau stated that the junior lifeguards program uses portable buildings during the summer and believed that they need a better facility to conduct lifeguard training. He indicated that normally a concept is created and budgeted to see if it goes anywhere. Mayor Ridgeway noted that Lifeguard Headquarters is located at the Newport Pier. Mr. Bludau reported that there are 1,200 junior lifeguards during the summer. Mayor Pro Tem Bromberg asked if this could be done for less than $115,000. Mr. Badum stated that they could come up with another number. Council Member Heffernan believed that it is amazing that 1,200 kids could be shuttled through the dilapidated structure. He added that he is in favor of doing something about it and noted that the City makes $400 per child From the program and there is a waiting list to join. He stated that the facility does not even have water. Mr. Badum stated that the Building Excise Tax Fund is significantly less this year than past years. He reported that $80,000 will be used to improve fire station diesel exhaust systems and $104,000 will be used to conduct security improvements and enhancements at the libraries. Mr. Badum reported that there is about $5.4 million in the Water Enterprise Fund, assuming the City gets $2.5 million in federal funding for the reservoir cover. He stated that the current funding level is $1.8 million. Council Member Heffernan believed that the City agreed to cover the reservoir whether federal funding is granted or not. Mr. Bludau indicated that this is one of staffs priorities. Mr. Danner reported that the Water Fund has almost $17 million in its reserves for projects like this. Council Member Heffernan believed that this was a public safety issue. Mr. Bludau stated that it is staffs intent to have the plans and specifications done regardless of where the funding comes from. He indicated that it takes a Volume 55 - Page 232 City of Newport Beach Study Session Minutes June 25, 2002 X15. number of months to construct the cover to specification. Mr. Davidson reported that this is also being balanced with the water year to try to maximize the 75% groundwater pumping. Utilities Engineer Sinacori reported that a consultant has been onboard for about four years, the design should be completed around Christmas, and the funding situation will be clearer by then. He indicated that being in construction by the end of the fiscal year is dependent on the cover product, but believed it would be likely that work can be conducted at the end of next summer. He stated that the cover is an encumbrance and that a construction contract will be awarded for this by Council. He confirmed that $1.8 million is budgeted currently in the CIP and that the project costs $4.3 million for the cover and $800,000 for the disinfecting system. He added that reserves were set aside for the cover, independent of federal funding, in the event the City has to move forward with the cover on its own. He stated that this would need to come to Council for appropriation. Mr. Bludau clarified that all the money it would take to fund the cover has not been set aside because it would not be wise to do this and then request funding from the federal government. Mr. Danner stated that this is consistent with CIP projects and that Council Policy F -3 requires them to put aside reserves, specifically in the Water and Wastewater Fund, for future capital improvement projects. He reported that money has been set aside for a number of years in anticipation of covering the reservoir. Mayor Ridgeway stated that, if the City does not receive the federal funding, a budget amendment will be prepared for funding to come out of the reserves. Mr. Badum reported that about $350,000 is being proposed for master plan improvements to water mains and about $500,000 for water transmission main improvements in the Water Enterprise Fund. Mr. Badum reported that the Wastewater Enterprise Fund has about $750,000 in projects set aside for this fiscal year. He stated that $75,000 will be used for master plan sewer improvements, $150,000 for grease control, $300,000 for master plan sewer pump improvements, and $120,000 for the televised pipe inspection program. Mr. Badum reported that the balance for the projects will come from the cooperative projects which are projects that are funded from outside sources, like guest taxes, contributions, Measure M, and various federal and state programs. He stated that about $1.9 million will be used for the Newport Boulevard and Balboa Boulevard street rehabilitation between 16'f' and 26th Streets. He noted that the project includes storm drain improvements and pavement replacement. Further, the project will complete the City's effort to rehabilitate Balboa Boulevard. He reported that there is about $2.1 million in Gas Tax money that will go to various street projects for replacement and repairs. He added that there is about $5 million in contributions for various grants and about $1.9 million from the Circulation and Transportation Fund for various projects. He reported that the City expects to receive about $2 million from Measure M funds. Council Member Heffernan stated that he was told that placing a signal at San Miguel Drive and Spyglass is not in the budget and that people are considering installing a turnaround or roundabout at the intersection. Volume 55 - Page 233 City of Newport Beach Study Session Minutes June 25, 2002 INDEX Mr. Edmonston reported that there is money in the CIP for traffic signal improvements which include some improvement at the intersection of San Miguel Drive and Spyglass in the next fiscal year. He indicated that they have letters on file from people in the neighborhood who have asked them to look at alternative improvements, but they have not made a commitment about the method to be used. He stated that their intent is to look at every option. Council Member Heffernan believed that the signal is overdue considering the vicinity of the park, the steep incline on Spyglass, and the increased traffic on San Miguel. He stated that something needs to done in the 2002 -2003 fiscal year. Mr. Badum indicated that they try to start with a clean slate and sometimes alternatives get brought up which they need to look at. Mr. Badum stated that they are recommending using $300,000 from the Circulation and Transportation Fund for raised medians, in conjunction with the Corona del Mar Business Improvement District (BID) project. He indicated that this would be a good safety and aesthetic improvement to the area. He reported that they are working with CalTrans for permission to do the medians and to possibly have control over that portion of Coast Highway. He stated that they are waiting for a CalTrans report to find out what amount of money it would take and about the terms /conditions for the relinquishment. He noted that this would be brought back to Council. He reported that, even if the City does not have control of the project, they will still proceed with the projects and have more coordination with CalTrans. He stated that, doing these types of projects are very doable. Mr. Edmonston explained that they want to change the medians in the area from Iris to the Port Theater. He indicated that, with this budget, there will be additional areas that can be changed. Mr. Bludau clarified that there is $150,000 for street improvements and another $150,000 was added to the wish list. Mr. Badum stated that the total for the Corona del Mar BID project is $400,000. Council Member Heffernan stated that the reservoir cover issue should be discussed during a public hearing. He indicated that residents on Spyglass, in Seaview, and areas that overlook the reservoir are not accustomed to the idea of covering the reservoir. He believed that more input and education needs to take place. He added that renderings or something needs to be given to people. Mr. Bludau indicated that the CEQA process also needs to occur. Mayor Ridgeway noted that the front of the reservoir is dirt and asked if landscaping can be added. Council Member O'Neil stated that upgrading the footbridge on Goldenrod has been deferred for over two years. He indicated that it would be an $80,000 project and believed that there is a need to upgrade /refurbish the bridge and planting area. He noted that it is a historical landmark and a charming crossing area. He indicated that he already requested $25,000 for this and is now asking that it be increased another $55,000. Mayor Pro Tem Bromberg indicated that District 5 is in good shape and thanked Public Works and General Services for that. Volume 55 - Page 234 City of Newport Beach Study Session Minutes June 25, 2002 INDEX Council Member Glover indicated that, because of the cost of land in the City, people have been building rather than having boatyards on Mariners Mile. She believed that the boatyards add to the marine look and asked that the City look into leasing long term or purchasing the land from the start of Mariners Mile to the McDonalds so people can put up more boatyards. She noted that boat sales generate a lot of revenue for the City. She emphasized the importance of keeping that type of use on Mariners Mile. Further, she noted that there was talk about putting a walkway on the water side of Mariners Mile. She indicated that new constructions have dedicated walkways and requested funding between $25,000 to $50,000 for this. She added that the Harbor Commission and/or the Economic Development Committee should conduct a study on both the issues. She reported that both the items were in the Mariners Mile Design Framework and were supposed to be studied further. Mayor Ridgeway believed that a cantilever boardwalk from the Arches Bridge to the Balboa Bay Club should be a high priority for the City. He indicated that it is doable and some type of money should be allocated. Mr. Bludau believed that the walkway, whether cantilevered or not, should be a capital improvement feasibility study and that about $50,000 should be included in the wish list if Council desires. He indicated that someone needs to look at the individual properties and right - of -ways. Mayor Ridgeway noted that the City owns from the bulkhead out. He added that the Mariners Mile area is one of the few viable commercial areas the City has in which the public can come to the water. In response to Council Member Proctor's question, Assistant City Manager Kiff announced that water quality is included in the CIP, under the Clean Beaches Initiative Projects. He reported that one of the major projects for West Newport was approved by the technical committee for funding. He stated that the project includes circulation improvements and grates and filters in the storm drains, and that the City was given its second half of Phase II's $500,000. He noted that almost all of the money is going to West Newport. He confirmed that the amount of money that can be spent in a reasonable fashion to get results has been appropriated, assuming the circulation improvement project works. Mayor Ridgeway added that the OCSD will also be spending money in West Newport to divert the storm drain water from Coast Highway, at the bridge, into the sewer system. Mayor Ridgeway referenced page 44 of the CIP (Marine Education Facility at Shellmaker Island) and noted that it appears that the City is allocating the majority of the money when it is supposed to be a cooperative effort. Mr. Kiff explained that there is no fund source showing for the $6.5 million construction cost since the fund sources are guaranteed through agreements with other agencies. He reported that the Department of Fish and Game has assured the City $1.1 million; the County has assured $1.4 million for the water quality lab at the Center; and UC Irvine has assured $500,000. Mayor Ridgeway recommended that footnotes be included in the CIP budget to explain the funding sources since they are significant. Mr. Kiff indicated that the City's $500,000 portion will come from American Trader Oil Spill money. He added that it was discussed that the City's portion be limited to $500,000, but will run some of the tidepool programs through the Center to help with staffing. Further, the City may also help with the custodial maintenance once built. Volume 55 - Page 235 City of Newport Beach Study Session Minutes June 25, 2002 INDEX Regarding the Balboa Village Community Center (page 57), Mayor Ridgeway stated that the name may want to be changed to the Balboa Village Junior Lifeguard Station. He indicated that there are facilities now, like at the American Legion Hall, that are available for meetings. Further, there is a clause in their lease that makes the facility available to the City in almost perpetuity. He believed that, if the new facility is redundant of what is at the Newport Pier, it would raise questions as to why this is going to be done. In response to Mayor Ridgeway's question regarding the Urban Forest Inventory (page 28), General Services Director Niederhaus explained that there is $10,000 in the current budget that will be carried over and another $10,000 was added to the CIP. He stated that the balance of $60,000, which makes a total of $80,000, is on the checklist for approval this evening. He indicated that the full inventory of trees in the City will be completed by fall. Mayor Ridgeway announced that the roads have been improved on the peninsula all the way to 16th Street and that, by the end of the year, improvements will take place from 16th Street to 2&h Street. He indicated that the comments he has received about the road improvements have been tremendous. Tom Hyans, President of the Central Newport Beach Community Association, stated that the residents and property owners have long been supportive of any effort to keep the wide, sandy beach in the central peninsula free of more concrete and asphalt. He thanked Council and staff for contributing to the improvements that are seen in Balboa Village and along Balboa Boulevard because they have spent years pursuing the planning and implementation projects that are now winding down. He also thanked whoever was in charge of the American Trader because, without the oil spill money, the piers would not have been rehabilitated; lifeguard headquarters would not have communications, video, emergency power, breakwater protection, and a new rescue boat; and there would not be any beach restroom improvements, ocean front walkways, lighting improvements, and beach access walkways. He noted that the evidence of the spill is gone but the results will last. Mr. Hyans referenced the two year program to build the Balboa Village Community Center (page 57) which would be a 5,000 square foot building at a cost of nearly $900,000. He highlighted the amenities and stated that it should be deferred or cancelled entirely. He pointed out that a study is underway to evaluate the need for a City facilities expansion. He believed that the project is unnecessary since the lifeguards have a facility at the Newport Pier that initially started with the same premise. He asked why the residents have to sacrifice rapidly diminishing and treasured assets for this type of extravagance. Dolores Otting believed that one of the newsletters indicated that, the reservoir cover was needed to meet federal and state guidelines for the water supply. Further, a Daily Pilot article stated that bleach is added to the water when there a problem. She reported that bleach is a known carcinogen and that Orange County has the highest rate of breast cancer in the country this year. She stated that she had breast cancer and that she Volume 55 - Page 236 City of Newport Beach Study Session Minutes June 25, 2002 INDEX does not want anyone to go through it. She believed that the City needs to take every precaution to cover the water and put in less bleach to make it safer to bathe and drink. Ms. Otting reported that she had trouble getting onto the City's website and requested that someone look into this. She also reported that Cox television does not televise the study sessions on time and asked if the City could get a copy of the meetings and replay it properly since it is capable of putting together various City - related programs. She noted that the School Board meetings are not televised anymore since their meetings are the same night as Council. She stated that their budget is larger than the City's and no one knows what is going on. She believed that it is more important that the community get involved with what is going on with the budgets, rather than show community shows. Barbara Johnson noted that the State has a $24 billion deficit. She believed that the wish list includes some good ideas; however, asked what will be cut from the budget in order to do the extra programs and projects. Mr. Bludau stated that this was discussed at the first study session and reported that the City has already subtracted $2.7 million from anticipated revenues that it will not be getting from the State. Mayor Ridgeway stated that the City, like all cities, is looking at Sacramento to try to prevent the raids on local revenues. Mr. Bludau stated that nothing will have to be cut out to fund the wish list. Mr. Danner reported that, as the budget is predicted at this point, the City has money that is in an amount over the required reserve requirements. He also confirmed that nothing would need to be cut out at this point. Council Member Heffernan reported that Council started looking at this budget almost a month ago and indicated that there has been more rumbling out of Sacramento. He asked Mr. Danner if he is still confident that the amount that is set aside for shortfalls or take -backs from Sacramento is adequate. Mr. Danner believed that it is and that the City has been very judicial in eliminating that amount from the budget. He indicated that the City is one of few cities that have done this. Council Member Heffernan asked if the City is reserving what is consistent with Council Policy. Mr. Danner reported that the reserves are fully funded and that funds have been included in the budget for every known anticipated expenditure. In response to Council Member Heffernan's questions regarding the retreat, Mr. Danner indicated that the major concern at the retreat was setting aside money for maintenance, repair, and replacement of City facilities. He reported that a study is being conducted to see what the numbers would be. He stated that they will come back to Council on this. He confirmed that all the retirements, liabilities, workers compensations, and compensated absences are being funded on an ongoing basis in amounts that are consistent with Council Policy and that the City is doing a good job of funding these. Mayor Ridgeway added that, when the retreat occurred, Newport Coast was not formally annexed. He indicated that the annexation has changed some of the budget numbers. Mayor Pro Tem Bromberg stated that he serves on the Finance Committee with Council Member Glover and Council Member Heffernan who is the Volume 55 - Page 237 City of Newport Beach Study Session Minutes June 25, 2002 chair. He indicated that they discussed these issues in depth with Mr. Danner and Deputy Administrative Services Director Kurtz who reviewed the City reserves. He reported that, when the County went through its bankruptcy, the City faired well compared to other cities because of the structure of its finances. He stated that the City also recovered well and has since made adjustments. He indicated that the reserves are very healthy and are used conservatively. He reiterated that very few cities in the County have pulled money out of its budget in the event of a shortfall from the State. PUBLIC COMMENTS —None. ADJOURNMENT — 5:50 p.m. The agenda for the Study Session was posted on June 19, 2002, at 3:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 238 INDEX CITY OF NEWPORT BEACH City Council Minutes DRAFT Regular Meeting June 25, 2002 - 7:10 p.nL INDEX STUDY SESSION — 3:30 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, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Absent: None C. CLOSED SESSION REPORT — Mayor Ridgeway announced that the City Council unanimously authorized the City Attorney to add the City of Newport Beach to an amicus brief in support of an appeal involving the City of Santa Monica Charter. D. PLEDGE OF ALLEGIANCE — Council Member Adams. E. INVOCATION — Pastor Dave Manne, Calvary Chapel of Costa Mesa. F. AIRPORT ISSUE 1. JWA SETTLEMENT AGREEMENT PROPOSED AMENDMENTS. Council Member Glover stated that two years ago, the City began working on an extension to the John Wayne Airport (JWA) settlement agreement. Council Member Adams, who was Mayor at the time, appointed Council Member Glover as Chairman and Council Members O'Neil and Proctor as committee members to the JWA Settlement Extension Ad Hoc Committee. Council Member Glover stated that a long term program was put together to gain countywide support for an extension to the settlement agreement that was fair to the City and, additionally, to have the Board of Supervisors support it by a 5 -0 vote. She stated that the corridor cities involved included Orange, Tustin, Anaheim, Santa Ana and Costa Mesa. She noted that City Manager Bludau was in charge of the education component of the program, which included a mailing campaign. City Attorney Burnham was responsible for working through the legal problems with the County and putting together the formal agreement. Council Member Glover announced that earlier in the day, the Board of Supervisors voted unanimously to support Scenario One, which has been the scenario supported by the City. She thanked the County, the Airport Working Group (AWG) and Stop Polluting Our Newport (SPON) for signing the agreement. She noted that many groups spoke Volume 55 - Page 239 C -2535 JWA Settlement Agreement (38) City of Newport Beach City Council Minutes June 25, 2002 INDEX in support of Scenario One and stated that there is no known opposition to it in the County, which means that it will be presented in Washington D.C. with countywide support. Council Member Glover stated that a tremendous amount of effort went into the program and specifically acknowledged Council Members O'Neil and Proctor, City Attorney Burnham, City Manager Bludau, the representatives from the City Councils of the corridor cities, Alan Songstad with the El Toro Re -Use Planning Authority (ETRPA), Alan Murphy and Mike Gatzke of the airport, Council Member Adams and the City Council. Council Member Glover stated that by working together, the City proved that Newport Beach can work with other cities in the County and with the Board of Supervisors. She noted that goals can only be accomplished when people work together and make concessions. Council Member Glover outlined the key terms of the extension agreement. Council Member Glover introduced Clem Shute, an attorney involved with the original settlement agreement who has continued to provide legal advice to the City. Mr. Shute stated that what was legally accomplished with the vote earlier in the day by the Board of Supervisors was that most of the restrictions were extended for a period of ten years, with the curfew extended for fifteen years. He stated that if the settlement agreement hadn't been extended, all restrictions would have been lifted after December 31, 2005. He noted that all of the restrictions are enforceable by court order. Mr. Shute stated that it is a significant accomplishment to have the County agree to the restrictions, and echoed Council Member Glover's comments on why the program worked. He added that completing the Environmental Impact Report (EIR) in such a timely manner was another major accomplishment. Mr. Shute concluded his comments by stating that he would not expect a lawsuit over the EIR. Council Member Glover introduced Steve Pflaum, who was also providing legal advice to the City during the original settlement agreement process. Mr. Pflaum stated that the original settlement agreement is truly historic and has never been equaled anywhere in the country. He stated that the extension of the agreement is also historic, and preserves and extends the key provisions and protections of the original agreement. Mr. Pflaum stated that, although the agreement is enough in itself, there is work that remains to be done and the City should remain proactive. He stated that this would include working with the Federal Aviation Administration (FAA) and the airlines to gain their acceptance of the agreement. Mr. Pflaum stated that there are benefits to the County, the FAA and the carriers, and an effort should be made to have them understand these. Motion by Council Member Glover to authorize the City Attorney to execute the Amendments (Exhibit B) on behalf of the City of Newport Beach; authorize the City Manager to execute the Implementation Protocol (Exhibit C); in conjunction with these authorizations, make the findings specified in Exhibit D; and authorize staff to record a Notice of Determination. Volume 55 - Page 240 City of Newport Beach City Council Minutes June 25, 2002 INDEX Tom Naughton, AWG President, provided a list of the 30 busiest airports in the world. He pointed out that JWA is the 291h busiest airport in the world, and has half of the takeoffs and landings that Los Angeles International Airport (LAX) has. Mr. Naughton stated that AWG supports the settlement agreement, but noted that the curfew does not apply to general aviation abiding by the noise restrictions. He stated that AWG will continue to pursue an airport at E1 Toro and asked what would be done with the 25 million passenger shortfall. He concluded by stating that he provided this same information to the Board of Supervisors earlier in the day. Dolores Otting asked how many lobbyists and attorneys are working on the issue. Mayor Ridgeway stated that the City will continue working with Mr. Shute, Mr. Pflaum, Mr. Lawry and Mr. Hunt. He stated that the contracts have been signed by the City Attorney's office, through the City Attorney's authority. Additionally, per questions of Ms. Otting, Mayor Ridgeway stated that the attorneys do provide the City with bi- weekly reports that are reviewed in Closed Session. Council Member Adams added that the funding was approved through the City Attorney's budget and was not authorized without public input. Council Member O'Neil additionally noted that all of the contracts with the consultants are public records and subject to review. Council Member O'Neil stated that the extension to the settlement agreement is a remarkable accomplishment, although it may not be the ultimate solution for handling the regional air transportation needs of the County. He acknowledged the considerable amount of money that has been spent and will continue to be spent, but stated that it is probably the single most important quality of life issue that the City faces. Council Member O'Neil stated that Council Member Glover led the effort and it was a job well done. He additionally thanked all those involved throughout the County. Council Member Proctor stated that he was Chairman of the John Wayne Airport Commission when the original settlement agreement was being worked on. He noted that the difference between the original agreement and the extension is that the extension has been a collaborative process. He stated that everyone should be proud of what has been done and the involvement of the corridor cities. Council Member Adams also thanked the individuals and groups that were mentioned. He extended his personal thanks to Council Member Glover and stated that she has spent an extraordinary amount of time on the effort. Mayor Pro Tem Bromberg stated that it has been an incredible team effort, led by Council Member Glover. He additionally acknowledged Volume 55 - Page 241 City of Newport Beach City Council Minutes June 25, 2002 .1W those individuals and groups mentioned throughout the meeting, and in particular, City Attorney Burnham. Council Member Heffernan stated that although he has a sense of suspicion and distrust towards political consultants, he is truly amazed at what has been accomplished. He complimented the team that got it done and all those involved. Mayor Ridgeway reported that all 34 cities in the County are in support of the extension agreement. He stated that the Southern California Association of Governments' (SCAG) 75- member board is almost entirely opposed to the expansion of LAX, and that LAX is at its maximum. He noted that the Board of Supervisors' vote earlier in the day is saying that Newport Beach has taken as much of the burden for air traffic demand that it can take. Mayor Ridgeway specifically acknowledged the efforts of City Attorney Burnham, City Manager Bludau and Council Member Glover. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None PRESENTATIONS Presentation of Proclamation for Recreation and Parks Month - July 2002. Mayor Ridgeway read and presented a proclamation to Val Skoro, Chairman of the Parks, Beaches & Recreation Commission, proclaiming July, 2002, as Recreation and Parks Month. Mayor Ridgeway noted that the City has 495 recreational acres, and when the bay and the ocean are included, the acreage totals 16,959. Mr. Skoro thanked the Mayor and stated that Newport Beach has many great parks. He briefly listed the future parks that are in the planning process. Newport Beach Film Festival: 2002 Festival Overview and Economic Assessment. Greg Schwenk, Executive Director of the Newport Beach Film Festival, thanked the City Council and the City for its support of the 2002 Festival. He stated that the current year was a challenging year for many film festivals, with several either discontinuing or reducing their programs. He announced that the Newport Beach Film Festival was able to grow during the current year, and experienced an increase in the number of screenings, attendees, filmmakers and industry participants. Mr. Schwenk noted the success of the short films and the seminars. He stated that the Newport Beach Film Festival is gaining in prestige and popularity within the film industry. He additionally noted the growing media coverage and exposure, and the Festival's own media campaign targeting the major drive market. Mr. Schwenk stated that those involved are proud of the Festival's growth and success, and will continue to strive to bring the best in classic and contemporary filmmaking to the community. He asked for the City Council's continued support. Volume 55 - Page 242 INDEX Recreation & Parks Month Proclamation (33) City of Newport Beach City Council Minutes June 25, 2002 INDEX Referring to the Festival's budget and the amount spent on hotel rooms, Mayor Pro Tem Bromberg suggested that the Festival organizers consider getting the hotel rooms underwritten. Mr. Schwenk confirmed that hotel rooms is one of the largest line items in the budget, and that they do have the goal of getting more sponsors and underwriters. Mayor Pro Tem Bromberg additionally suggested the Festival apply for the 501C3 exempt tax status, if they aren't already. Mr. Schwenk confirmed that they are. Mayor Ridgeway stated that he has attended the Festival and that it's a great event. He complimented Mr. Schwenk for his efforts. Mr. Schwenk stated that individual initiative and group effort make it possible, and acknowledged the Festival's 200 volunteers. H. NOTICE TO THE PUBLIC I. 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 Adams requested that a future Study Session include a review of the City's recycling program. He stated that the City's trash is sent to a recycling center and it might be more efficient to separate the wet trash from the dry trash beforehand. He noted that there could be some obstacles, but he'd like to look at possibly phasing into it or conducting a test program. • Mayor Pro Tem Bromberg announced that Ralph Rodheim, a Balboa Island resident, has initiated a formal flag lowering ceremony for the summer. They will be held every Friday and Saturday at approximately 7:45 p.m. and take place at the Balboa Fun Zone. • Council Member Heffernan requested a report on Robert's Rules of Order in regard to the timing of motions at City Council meetings. He stated that he is concerned about the public's perception when motions take place prior to the City Council receiving a staff report or public input. • Council Member Heffernan requested a report on the current status of the Mormon Temple and what the next steps are, given that the Environmental Impact Report (EDt) has been completed. • Mayor Ridgeway announced that the grand opening of the Balboa Pier and the Balboa Pier Plaza, and the reopening of Ruby's at the end of the pier, took place on Friday, June 21, 2002. He noted the picture on display at the meeting of the Ruby's flagship restaurant and stated that it was presented as a gift to the City from Ruby's in celebration of their twenty years in business. Mayor Ridgeway requested that Sharon Fry, the principal at Corona del Mar High School, be contacted and asked to make a presentation at an upcoming City Council meeting on student Rachel Colgate's "Every Fifteen Minutes" senior project. He suggested that both Ms. Fry and Volume 55 - Page 243 City of Newport Beach City Council Minutes June 25, 2002 INDEX Ms. Colgate attend the meeting and that the videotape produced by Ms. Colgate be shown. He stated that the project provides a powerful message to discourage teens from drinking and driving. J. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 2. Item removed from the Consent Calendar by a member of the audience. 3. 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. RESOLUTIONS FOR ADOPTION 4. GENERAL MUNICIPAL ELECTION - NOVEMBER 5, 2002: Res 2002 -43 ADOPTION OF RESOLUTIONS CALLING THE ELECTION AND Res 2002 -44 REQUESTING CONSOLIDATION WITH THE STATEWIDE General Municipal GENERAL ELECTION. 1) Adopt Resolution No. 2002.43 Calling and Election Giving Notice of the Holding of a General Municipal Election to be Held (39) on Tuesday, November 5, 2002, for the Election of Members of the City Council as Required by the Provisions of the City Charter; and 2) adopt Resolution No. 2002 -44 Requesting the Board of Supervisors of the County of Orange to Consolidate a General Municipal Election to be Held on Tuesday, November 5, 2002, with the Statewide General Election to be Held on the Same Date Pursuant to Section 10403 of the Elections Code. 5. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION Res 2002 -45 FRANCHISE TO TROJAN PORTABLE SERVICES. 1) Adopt Ord 2002 -12 Resolution No. 2002 -45 to award a Non - exclusive Solid Waste Non - exclusive Franchise to Trojan Portable Services and to schedule a public hearing Solid Waste for July 9, 2002; and 2) introduce Ordinance No. 2002 -12 granting a Collection Non - exclusive Solid Waste Franchise to Trojan Portable Services, and Franchises schedule for second reading on July 9, 2002. (44) 6. RESOLUTION FIXING THE EMPLOYER'S PERS MEDICAL C -.2946 CONTRIBUTION FOR NEWPORT BEACH FIRE MANAGEMENT Res 2002 -46 ASSOCIATION. Adopt Resolution No. 2002 -46 with respect to Fire Management members of the Newport Beach Fire Management Association Association (NBFMA), fixing the employer's contribution under the Public (38) Employees' Medical and Hospital Care Act. CONTRACTS AND AGREEMENTS 7. MAIN BEACH SEWER FORCE MAIN REPLACEMENT (C -3296) — C -3296 COMPLETION AND ACCEPTANCE. 1) Accept the work; Main Beach Sewer 2) authorize the City Clerk to file a Notice of Completion; 3) authorize Force Main the City Clerk to release the Labor and Materials bond 35 days after Replacement the Notice of Completion has been recorded in accordance with (38) applicable portions of the Civil Code; and 4) release the Faithful Volume 55 - Page 244 City of Newport Beach City Council Minutes June 25, 2002 INDEX Volume 55 - Page 245 Performance Bond one (1) year after Council acceptance. 8. WEST NEWPORT SEWER MAIN REPLACEMENT (C -3453) — C -3453 COMPLETION AND ACCEPTANCE. 1) Accept the work; West Newport 2) authorize the City Clerk to file a Notice of Completion; 3) authorize Sewer Main the City Clerk to release the Labor and Materials bond 35 days after Replacement the Notice of Completion has been recorded in accordance with (38) applicable portions of the Civil Code; 4) release the Faithful Performance Bond one (1) year after Council acceptance; and 5) approve Amendment No. 1 to the Professional Services Agreement with Engineering Resources for additional as- needed construction support services from $28,163 to $43,208 and authorize the Public Works Director to execute the Amendment. 9. CORONA HIGHLANDS WATER MAIN REPLACEMENT, C -3345 STREET REHABILITATION AND STORM DRAIN BA -047 IMPROVEMENTS (C -3345) — COMPLETION AND Corona Highlands ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file Water Main a Notice of Completion; 3) authorize the City Clerk to release the Labor Replacement and Materials bond 35 days after the Notice of Completion has been Street recorded in accordance with applicable portions of the Civil Code; Rehabilitation and 4) release the Faithful Performance Bond one (1) year after Council Storm Drain acceptance; 5) approve a budget amendment (BA -047) transferring Improvements $194,181.43 from 7181- C5100643 to Account No. 7181- C5100595 and (38140) approve the appropriation of an additional $26,228.46 from Water Account No. 7501- C5500578 for this project; and 6) authorize the Public Works Director to approve Change Order No. 4 in the amount of $3,674.52 provided for the installation of new water meter boxes and adjustment of boxes on Shorecrest Lane and also approve Change Order No. 5 in the amount of $3,277 provided for downtime and an extra move -in for the asphalt subcontractor. City Manager Bludau noted that the correct amount for the additional appropriation from Water Account No. 7501- C5500578 is $26,228.46. 10. NEWPORT HEIGHTS PAVEMENT OVERLAY — AWARD OF C -3473 CONTRACT (C- 3473). 1) Approve the plans and specifications; Newport Heights 2) award the contract (C -3473) to Ben's Asphalt, Inc. for the total bid Pavement Overlay price of $474,825 and authorize the Mayor and the City Clerk to (38) execute the contract; and 3) establish an amount of $47,000 to cover the cost of unforeseen work. 11. SEWER MAIN TELEVISING PROGRAM — AWARD OF C -3511 CONTRACT (C- 3511). 1) Award the contract (C -3511) to Professional Sewer Main Pipe Services (ProPipe) for a total price of $110,295 and authorize the Televising Mayor and the City Clerk to execute the contract; and Program 2) establish an amount of $3,500 for additional and unforeseen work. (38) 12. IRVINE AVENUE FROM SANTIAGO TO UNIVERSITY AND C -3412 JAMBOREE ROAD FROM SANTA BARBARA TO Irvine Avenue EASTBLUFF/FORD ROAD 24 -INCH WATER MAIN 24 -Inch Water REPLACEMENT — AWARD OF CONTRACT (C- 3412). 1) Approve Main Replacement the plans and specifications; 2) award the contract (C -3412) to W.A. (38) Volume 55 - Page 245 City of Newport Beach City Council Minutes June 25, 2002 INIIDEX Volume 55 - Page 246 Rasic Construction Company for the total bid price of $2,159,370.09 and authorize the Mayor and the City Clerk to execute the contract; and 3) establish an amount of $200,000 to cover the cost of unforeseen work. 13. HAZEL AVENUE PAVEMENT REHABILITATION — AWARD OF C -3448 CONTRACT (C- 3448). 1) Approve the plans and specifications; Hazel Avenue 2) award the contract (C -3448) to Hardy and Harper, Inc. for the total Pavement bid price of $65,053.85 and authorize the Mayor and the City Clerk to Rehabilitation execute the contract; and 3) establish an amount of $6,500 to cover the (38) cost of unforeseen work and testing. 14. 2002 -2003 TRAFFIC SIGNAL UPGRADES — AWARD OF C -3529 CONTRACT (C- 3529). 1) Approve the plans and specifications; BA -050 2) award the contract (C -3529) to F. J. Johnson, Inc. for the total bid 2002 -2003 Traffic price of $303,759 and authorize the Mayor and the City Clerk to Signal Upgrades execute the contract; 3) establish an amount of $30,375.90 to cover the (38/40) cost of unforeseen work; and 4) approve a budget amendment (BA -050) authorizing the appropriation of $55,634 from the Transportation and Circulation Fund balance to Account No. 7261- C5200068. 15. BUCK GULLY PUMP STATION REHABILITATION — AWARD C -3368 OF CONTRACT (C- 3368). 1) Approve the plans and specifications; 2) BA -049 award the contract (C -3368) to Caliagua, Inc. for the total bid price of Buck Gully Pump $762,511 and authorize the Mayor and the City Clerk to execute the Station contract; 3) establish an amount of $75,000 to cover the cost of Rehabilitation unforeseen work; and 4) authorize a budget amendment (BA -049) (38/40) appropriating $157,511 from the unappropriated Wastewater Fund Reserve Balance to Account No. 7532- C5600100. 16. CONTRACT WITH A FORMER CITY EMPLOYEE. Grant C -3541 permission to staff to enter into a professional services contract with a Robert Kain former City employee. Contract (38) 17. MEMORANDUM OF UNDERSTANDING (MOU) WITH FIRE C- 2946/Fire MANAGEMENT ASSOCIATION. Approve MOU between the City of Management Newport Beach and the Newport Beach Fire Management Association. Assoc. MOU (38) 18. LEGAL ADVERTISING BID FOR FISCAL YEAR 2002 -2003. Legal Advertising Accept the bid of the Daily Pilot and authorize a purchase order for the FY 2002 -2003 one -year period of fiscal year 2002 -2003. (32) 19. IMPLEMENTATION AGREEMENT FOR FY 2002 -03 NATIONAL C -3542 POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) NPDES Program PROGRAM. 1) Authorize Mayor Ridgeway to execute the (38) Implementation Agreement with the County of Orange to administer the countywide NPDES Program; and 2) if approved within the FY 2002 -03 CIP, authorize the expenditure of $224,897 to the County of Orange for NPDES Administration expenses per the Implementation Agreement. MISCELLANEOUS ACTIONS 20. UNINTERRUPTIBLE POWER SUPPLY REPLACEMENT. Award Police Facility Volume 55 - Page 246 City of Newport Beach City Council Minutes June 25, 2002 proposal submitted by Dell Computer Corporation for a replacement Uninterruptible Power Supply at the Police Facility manufactured by American Power Conversion from budget account number 7017 - C1820631. 21. CALIFORNIA LAW ENFORCEMENT EQUIPMENT PROGRAM. 1) Approve acceptance of $52,190 from the State of California Law Enforcement Equipment Purchase ( CLEEP) program; and 2) approve a budget amendment (BA -048) of $52,190 in funds to be transferred from CLEEP Grant Program Revenue Account No. 1820 -4874 to the Police Department CLEEP Capital Equipment Account No. 1820 -9017. Motion by Mayor Pro Tem Bromberg to approve the Consent Calendar, except for the item removed (2), and noting the correction to Item No. 9. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None K. ITEM REMOVED FROM THE CONSENT CALENDAR 2. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF JUNE 11, 2002. Jim Hildreth, The Grand Canal, stated that what he said at the regular meeting of June 11, 2002, is not accurately reflected in the minutes. He requested that the tape be reviewed for completeness and accuracy, and the appropriate corrections be made to the minutes. He specifically referred to the comments he made on Item Nos. 3, 6, 16, and 24, and during Public Comments. 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, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None L. PUBLIC COMMENTS Dolores Otting stated that she is hearing of new community centers throughout the City but doesn't know of one in District 7, which is the district she lives in. Mayor Ridgeway stated that he would have the Chairman of the Parks, Volume 55 - Page 247 INDEX Uninterruptible Power Supply Replacement (70) BA -048 California Law Enforcement Equipment Program ( CLEEP) (40170) City of Newport Beach City Council Minutes June 25, 2002 INDEX Beaches & Recreation Commission respond to her inquiry. Ms. Otting continued by stated that the site being considered for the community center in Newport Coast and the consultant that was hired to study it are items that should be on the City Council agenda. She added that the site being considered is partially on a landfill. Ms. Otting provided some of the history of the landfill and how it was covered. She additionally noted that it is not lined and recommended not moving the soil in the area to accommodate a community center. She referred to the contaminated water that could runoff into the bay and ocean. Mayor Ridgeway assured Ms. Otting that the City would do nothing to impair water quality. Barbara Johnson, Newport Beach, thanked Council Member Glover and the City Council for the work they've done on the airport. She also thanked them for beginning to provide Closed Session reports, and requested that the vote also be reported. Council Member O'Neil stated that the City Council has been following its legal requirements to provide Closed Session reports. Dr. Jan Vandersloot, Newport Heights, announced the formation of the Balboa Arbor Society, which is a group of people who desire to preserve the ficus trees on Main Street and in other areas of the City. He encouraged anyone that would be interested in joining the group to contact him at (949) 548.6326 or ionv30aol.com. He stated that they are hoping to increase public knowledge and announced that the issue would be agendized for the City Council meeting of July 9, 2002. He encouraged members of the public to voice their opinion on the ficus tree issue at that meeting. Dr. Vandersloot concluded by stating that the trees should be retained. Jim Hildreth, The Grand Canal, stated that a resident told him that he should ease up on the City Council. Mr. Hildreth explained that he continues to seek the City Council's assistance with gaining access to a mooring location. He stated that the City has acknowledged that there is an access issue and that the ladder is not the proper structure for the canal. He added that it is illegal to deny access to leased property. Mr. Hildreth displayed pictures showing examples of moorings with access structures. Mayor Ridgeway suggested that Mr. Hildreth submit his information to Harbor Resources Director Melum. Council Member Adams asked if the City Council should consider eliminating the mooring that Mr. Hildreth is speaking of Mayor Pro Tem Bromberg explained that the City Council gave Mr. Hildreth the option of keeping his mooring in its current location if he would acknowledge that he is not entitled to access, since access requires ownership of property within 30 feet of the mooring, which Mr. Volume 55 - Page 248 City of Newport Beach City Council Minutes June 25, 2002 Hildreth does not have. M. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES — None. N. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 22. PLANNING AGENDA FOR JUNE 20, 2002. Planning Director Temple stated that there were eight items on the Planning Commission's agenda of June 20, 2002, and that one was removed and one was continued. Of the six items remaining, Planning Director Temple stated that Item No. 1 was a denial of a parking waiver request by a nail salon, Item No. 3 was an approval of an alcoholic beverage outlet use permit and Item No. 4 was an approval of a parking waiver for an office building. Planning Director Temple stated that Item No. 5 involved a cell tower on the existing Edison substation on Camelback Street. She stated that the City doesn't normally allow monopole installations for cell sites, but due to the type of pole being requested and the existing poles on the site, the Planning Commission approved the request. Council Member Heffernan stated that at the Study Session of April 23, 2002, the City Council discussed third generation cellular service. He recalled that it was decided that the City should develop a right -of -way encroachment policy and also look into the possibility of being the landlord for the third generation service throughout the City by utilizing existing light poles. He asked for a report on the status of these two action items. Mayor Ridgeway stated that the issue is being agendized for the City Council meeting of July 9, 2002, and that Assistant City Manager Kiff is the staff person preparing the report. Planning Director Temple added that staff is also working on an ordinance that would address installations in public rights -of -way and on City facilities, and design and development criteria for those located on private property. Assistant City Attorney Clausen stated that outside staff is working on the ordinance and she is unsure when it will be ready to present to the City Council. She added that the policy would require that the antennas comply with the ordinance provisions, so both should be brought before the City Council at the same meeting. Mayor Ridgeway requested that a status report be provided at the City Council meeting of July 9, 2002, and that Fire Chief Riley and Police Chief McDonell be notified. Council Member Heffernan stated that the providers should also be encouraged to make presentations and provide photographs showing what the antennas will look like. Mayor Ridgeway further requested that Gary Gray be invited to attend the meeting. Volume 55 - Page 249 Woo)�► Planning Commission (68) City of Newport Beach City Council Minutes June 25, 2002 Planning Director Temple continued with her report on the Planning Commission meeting and stated that Item No. 2 involved a request by the Balboa Island Village Inn to expand the nature of their live entertainment. She reported that the Planning Commission determined that the request should be handled through the live entertainment permit process, and was outside the jurisdiction of the Planning Commission. Planning Director Temple stated that she is working with the applicant and City staff to assure that the establishment's operation protects the peace and quiet of the neighborhood. Planning Director Temple reported that Item No. 6 involved a call for review of a decision made by the Modifications Committee in regard to a nonconforming triplex. Planning Director Temple stated that staffs analysis concluded that the approval of a modification was not appropriate. She stated that the appropriate path for review would be through the use permit process. Mayor Pro Tern Bromberg requested that he be kept apprised of the status of the Village Inn issue. Motion by Mayor Pro Tern Brombere to receive and file the written report. Jim Hildreth stated that he attended the Planning Commission meeting and they determined that the Village Inn item was not within their jurisdiction. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None O. PUBLIC HEARINGS 23. PACIFIC BAY HOMES (PA2001 -250) — ONE FORD ROAD — APPEAL OF THE PLANNING COMMISSION DECISION TO DENY A REQUEST TO AMEND THE PLANNED COMMIUNITY DEVELOPMENT PLAN TO ALLOW THE INSTALLATION OF INDEPENDENT KITCHEN FACILITIES WITHIN GUEST COTTAGES. THE 11 PROPERTIES ASSOCIATED WITH THE REQUEST ARE IDENTIFIED AS PARCEL NOS. 1 THROUGH 8 (ON TROON DRIVE) AND LOTS 9 AND 13 (ON TURNBERRY DRIVE) OF TRACT MAP NO. 15387 AND LOT NO. 21 (ON HONORS DRIVE) OF TRACT MAP NO. 15389 (contd. from 6/11/02). Motion by Council Member O'Neil to continue the item to August 13, 2002. Volume 55 - Page 250 INDEX PA2001 -250 Pacific Bay Homes One Ford Road (68) City of Newport Beach City Council Minutes June 25, 2002 P. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 24. EZ LUBE (PA2002 -034) — 3600 EAST COAST HIGHWAY — APPEAL OF THE PLANNING COMMISSION DECISION TO DENY A REQUEST TO CONSTRUCT AN AUTOMOBILE LUBRICATION FACILITY CONSISTING OF A 2,641 SQUARE FOOT BUILDING WITH TWO SERVICE BAYS LOCATED IN CORONA DEL MAR. THE APPLICATION INCLUDES A REQUEST TO WAIVE THREE OF THE TEN SPACE OFF - STREET PARKING REQUIREMENT. Mayor Ridgeway opened the public hearing. Motion by Council Member O'Neil to continue the item to August 27, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 25. APPOINTMENTS TO BOARDS AND COMMISSIONS. City Clerk Harkless read the ballot votes of the Council Members for the City Arts Commission as follows: David Colley (O'Neil, Ridgeway, Glover, Adams, Proctor) Leslie Feibleman (Heffernan, Bromberg) City Clerk Harkless announced that David Colley is appointed to the City Arts Commission. City Clerk Harkless read the ballot votes of the Council Members for the Civil Service Board as follows: Timothy Brown (no votes) Robert Badham (Heffernan, O'Neil, Bromberg, Ridgeway, Glover, Adams, Proctor) City Clerk Harkless announced that Robert Badham is appointed to the Civil Service Board. Volume 55 - Page 251 INDEX PA2002 -034 EZ Lube 3600 East Coast Highway (68) Boards & Commissions (24) City of Newport Beach City Council Minutes June 25, 2002 INDEX City Clerk Harkless read the ballot votes of the Council Members for the Parks, Beaches & Recreation Commission as follows: William Garrett (Adams) Steven Rosansky (Heffernan, O'Neil, Proctor) Gregory Ruzicka (Heffernan, Bromberg, Ridgeway, Glover) Thomas Tobin (O'Neil, Bromberg, Ridgeway, Glover, Adams, Proctor) City Clerk Harkless announced that Gregory Ruzicka and Thomas Tobin are appointed to the Parks, Beaches & Recreation Commission. City.Clerk Harkless read the ballot votes of the Council Members for the Planning Commission as follows: Phillip Lugar (no votes) Larry Tucker (Heffernan, O'Neil, Bromberg, Ridgeway, Glover, Adams, Proctor) City Clerk Harkless announced that Larry Tucker is reappointed to the Planning Commission. City Clerk Harkless additionally announced that all of the terms are effective on July 1, 2002. Q. CURRENT BUSINESS 26. 2002 -03 BUDGET ADOPTION. City Manager Bludau provided the City Council with a new budget checklist. He pointed out the $25,000 item that was added for new equipment at the employee fitness center. He also noted that an item for $30,000 needs to be added to the list for a consultant to study the need for widening Jamboree Boulevard at the Bison and University intersections. He stated that many people are questioning if the widening should be a part of the circulation element of the general plan. City Manager Bludau stated that with the addition of the $30,000 item, the total of the supplement budget checklist is $811,157. Council Member Adams stated that he was the one to request that the Jamboree Boulevard study be done, and that he'd also like it to include a review of alternatives for the proposed flyover ramp from Jamboree Boulevard to Route 73. City Manager Bludau stated that the City Council needs to decide which elements of the checklist should be included in the budget. Council Member O'Neil asked if there were adequate funds to fund all of the items on the checklist. City Manager Bludau confirmed that anticipated revenues would still exceed expenditures if the entire checklist were approved. Council Member Heffernan asked what was done in the budget to offset expected problems at the State level. Administrative Services Director Volume 55 - Page 252 Res 2002 -47 2002 -2003 Budget Adoption (40) City of Newport Beach City Council Minutes June 25, 2002 INDEX Danner stated that the general fund was reduced by $2.7 million in anticipation of a reduction in the Vehicle License Fee (VLF). Mayor Ridgeway announced that the total appropriations for the operating budget for fiscal year 2002.03 is $121,296,381 and the capital budget totals $31,560,283. He also requested that the budgeted amount for the Balboa Village Community Center be reduced from $115,000 to $30,000 in the Capital Improvement Program (CIP). He stated that this would be appropriate until a consensus on the peninsula is reached. Administrative Services Director Danner stated that the supplemental budget items on the checklist are new items that were discussed during the budget review sessions. Mayor Pro Tem Bromberg stated that the first item on the checklist should be for the Balboa Island Museum & Historical Society, which is a correction to the title. Council Member Heffernan asked for a historical perspective of how the 2002.03 budget compares to the 2001 -02 budget. Administrative Services Director Danner stated that the proposed budget is less than the prior fiscal year. Specifically, he stated that the estimated operating expenditures for 2001 -02 are $111,382,904 and the proposed budget expenditures for 2002 -03 are $110,539,148. He also noted that the CIP recommendation for 2002 -03 is for $31,660,283, which is considerably smaller than the prior year. Jim Hildreth, The Grand Canal, suggested that money be budgeted to audit the Harbor Resources office. He stated that documents seem to be misplaced and are important to people who have boats and moorings. Mr. Hildreth additionally noted that the shore mooring fees are to be used to maintain the Harbor Resources Department. He stated that the missing documents should be found and the records should be put in order. Laura Dietz stated that a public safety report was done for the City in 1975. She suggested that an update be done, and that it specifically includes what the community would do if it were hit by a tsunami. She stated that the California coast has been fortunate so far, but suggested that a moderate amount of money be set aside to study the issue. City Manager Bludau stated that the general plan update process will include a study of the City's potential disaster hazards. Barbara Johnson stated that she has attended all of the budget study sessions and understands the three budget volumes. She stated that by observing and participating in the process, she feels that the City needs a budget committee comprised of council members and residents. Mayor Pro Tem Bromberg stated that the budget process is not as simple as it might appear. He stated that the council members receive the budget materials weeks prior to the first study session, and that a Volume 55 - Page 253 City of Newport Beach City Council Minutes June 25, 2002 great deal of time and effort goes into the process. Mayor Ridgeway added that the budget process begins the January prior to the start of the fiscal year. And, City Manager Bludau noted that the council members are also constantly reviewing various components of the budget with staff throughout the process. Mayor Ridgeway requested that staff review the advantages and disadvantages of forming a budget committee. Motion by Council Member O'Neil to adopt Resolution No. 2002 -47 adopting the City's 2002.03 Budget, to include all of the Budget Checklist items, as well as an additional item of $30,000 for a consultant to study the need for widening Jamboree Boulevard at the Bison and University intersections, and the reduction of the Balboa Village Community Center project in the CIP from $115,000 to $30,000. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None R. MOTION FOR RECONSIDERATION — None. S. ADJOURNMENT — at 9:18 p.m. in the memory of Donald Wayne Moses. The agenda for the Regular Meeting was posted on June 19, 2002, at 3:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 254 INDEX