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HomeMy WebLinkAbout01 - MinutesJanuary 13, 2015 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting November 25, 2014 I. ROLL CALL - 4:00 p.m. Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar ,a Council Member Daigle referenced Item 14 (Contract with the New Irvine Ranch Conservancy for Preparation of a Resource and Recreation Management Plan for Big Canyon Restoration Area) and suggested modifying the recommendation to eliminate language relative to starting the plan once funding is secure. This would only move the planning forward at this stage. There were no objections from Council. SS2. Presentation: Homelessness Awareness Month (November 2014)/Information about the Orange County Commission to End Homelessness City Manager Kiff introduced Scott Larson, Executive Director of HomeAid Orange County. Mr. Larson provided background and details of a 10 -year plan on homelessness, reported on specific issues, and added that they are trying to find permanent sites for year -round emergency shelters. Council Member Gardner noted that one of the challenges involve people's attitude towards homelessness. In response to her question, Mr. Larson reported that his organization is working on outreach, addressing the various kinds of homelessness, and educating the public. He reported that his organization works with police departments and that many cities have established police contacts and liaisons. Council Member Petros reported that he was the City's representative to the Housing and Community Development Committee. He noted the importance of recognizing that money for homelessness has evaporated with the dissolution of redevelopment, commented on the number of homeless veterans, and suggested that HomeAid distribute more packets of information. Mayor Hill thanked Mr. Larson for the presentation and noted that the Newport Beach Police Department works hard to look for a cause on an individual basis and resolve the issue at that level. Mr. Larson emphasized that every community needs a system to help the homeless. SS3. Arts and Culture Master Plan Library Services Director Hetherton introduced Rick Stein and Pat Wayne from Arts Orange County. Rick Stein, Executive Director of Arts Orange County, provided a PowerPoint presentation to discuss the process, the desire to incorporate the Arts Plan into the City's General Plan, the Volume 62 - Page 111 City of Newport Beach Study Session and Regular Meeting November 25, 2014 value of arts and culture to the community, objectives, economic impact, recommendations, and next steps. Council Member Petros reported that Council has acted to set aside a small amount of development fees for the arts and that some believe it is not appropriate for government to get involved in funding the arts. Mr. Stein reported that the greatest cities in the country believe in the importance of investing in arts infrastructure and programs. He added that government support stimulates more private- sector support and that private matching funds are often required in order to receive grants. He commented on the report which indicates that the City is on the right track and has been since it incorporated arts into its General Plan. In response to Council Member Gardner's question on the interview process, Mr. Stein stated that his organization interviewed people representing a variety of community sectors, including homeowner associations, businesses, and the art community. He reported that invitations were sent to 39,000 households inviting their input. Council Member Petros commented on the word "retreat" and suggested using a different term such as "open house" to portray the City's desire for community input. Discussion followed regarding the public's response to the existing programming. In response to Mayor Pro Tem Selich's question, Pat Wayne, Deputy Director of Arts Orange County, discussed the design review process. Mayor Hill noted that the concept of "success begets success" is evident in projects such as the OASIS Senior Center and the Civic Center. He commented on success building an image of good design rather than adding regulations. Council Member Henn added that having a design review function is appropriate and suggested considering creating a City policy that encourages the consideration of opportunities for public art in terms of new construction. Ms. Wayne pointed out that any plan can be improved upon and that the plan should serve as a road map where adjustments can be made. In response to Mayor Hill's question, Mr. Stein addressed the community outreach and input process. Council Member Curry commented on the amount of money the City is spending on a per capita basis on arts, noting that the City is getting a good value. He referenced Concerts on the Green and stated that, whether they are supported or not, the Arts Master Plan is not the governing document that determines whether the City should have art, but rather City policy is. Council Member Gardner stated that Concerts on the Green have been very successful, but noted issues with private parties at the Civic Center. She encouraged the City to pursue purchasing the Orange County Museum of Art (OCMA) property since there is no place in the City to display paintings. Council Member Henn reported that this is a "plan to plan" and many aspects of the recommendations still need to be articulated before it can become action. Further, the plan needs a governance structure to drive completion of the recommendations and a governance that has the weight of Council Members who are committed to moving the plan forward and setting goals for funding. He expressed support for the creation of a staff position to support these Volume 62 - Page 112 City of Newport Beach Study Session and Regular Meeting November 25, 2014 functions, and hoped that the new Council will set goals for funding and set a structure for driving the process. In response to Mayor Pro Tem Selich's question, Mr. Stein reported that he is not aware of such a structure in other cities, but that other cities, have addressed special projects through the assignment of a task force of Council Members. Mayor Hill commented on Council's participation in working groups, as liaisons, who report back to the full Council. Council Member Henn noted that the Balboa Village Advisory Committee (BVAC) has excellent staff support, drove a planning process with specific recommendations, and that having Council participation helped move it forward into fruition. In terms of the City Arts Commission, Council Member Henn noted that the scope is much larger than what they have been regularly involved in, pointing out that this is larger than what has been attempted in the past and believed that the City needs a different structure and greater funding sources. Council Member Curry reported that, in 2010, he was privileged to participate in the Mayor's Institute of the Arts sponsored by the National Endowment of Americans for the Arts. He noted that public officials play an important role in setting policies, providing funding, and creating an environment by which arts can flourish, but less effective in terms of the selection and implementation of the arts. He believed that the processes for the selection and implementation are better if politics are taken out of them and community members have the opportunity to be in charge. Molly Pontin, Director of Education and Community Programming for Pacific Chorale, commented positively on the plan and the inclusion of a City Department and staff for the arts. She added that this will make it easier for Pacific Chorale to partner with the City. She thanked Council for its support of the arts. Michaell Magrutsche, former City Arts Commissioner, commented on the digital age and on engaging /exposing as many people as possible For the least amount of money. Joy Brenner noted the need for increased community participation and for art to reflect what the community cares about. She thanked Council and the City Arts Commission for its work. Sara Wilkinson, local artist, commented on the community process and expressed disappointment in how the community was considered in meetings and the online survey. She believed that the ideas developed from those meetings were not documented and expressed concern with the City Arts Commission approval process. She thanked Council for the public consultation process that was part of the Bicycle Master Plan. Arlene Greer, City Arts Commissioner, thanked Council for its support and for providing the community with this opportunity. She commented on arts as part of a well- rounded education and commented positively on Council's suggestion regarding the pursuit of the OCMA property, noting the need for display space. She also commented on the need for a large, indoor arts event space and believed that the Arts Master Plan is a good beginning for the City. In response to Council Member Petros' question, City Manager Kiff reported that the intent is to bring this item back to Council in January or February for formal action. Volume 62 - Page 113 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Council Member Petros commented on the importance of community input and having art reflect what the community cares about. Council Member Henn noted that there will be meaningful opportunities for additional public input when the major components of the Master Plan are addressed. He commented on the need for a group whose sole mission is to move the Arts Master Plan forward, other than the City Arts Commission. Mayor Pro Tem Selich suggested having another group deal with arts programming and having the City Arts Commission in charge of implementing the Master Plan. John Forsyte, President of the Orange County's Pacific Symphony, commended Council for commissioning the Plan. He commented on the economic impact of the various groups and on the power of arts in the community. He discussed the synergy of the various arts groups in Orange County to create something bigger than the individual communities. He discussed the need for regional planning that the City could spearhead to advance the arts. Jim Mosher agreed with those who saw flaws in the process for developing the Plan and encouraged ensuring that the Plan reflects the community's view of the government's role in art. Laura Curran believed that the City should be involved when there are things that cannot be accomplished by other means. She stated that she is trying to understand the strategic reason for expanding what the City is already doing, in terms of the arts. She referenced the number of arts organizations already in the City, asked how the Plan will improve that, and suggested forming a public /private partnership. She also commented on the lack of a budget. Jim Warren commented that the resident associations do not have issues with having City art, but expressed concerns that activities take place and plans are made without residents being informed. He commented on the need for the City Arts Commission to reach out to residents relative to the art programs. Pat Brill, President of the Board of Directors of the Baroque Music Festival, commented on arts organizations in the community and on the lack of communication regarding arts programs. Council Member Daigle commented positively on the Baroque Music Festival and, in response to her question, Ms. Brill noted that its success is the result of many dedicated volunteers. III. PUBLIC COMMENTS Scott Griffiths, President of Great Scott Tree Service, Inc., asked Council to reconsider the bid for City- wide tree trimming services, addressed staffs evaluation of their service, and Council concerns. He addressed the number of trees they planted last year and plans for planting additional trees before the end of the fiscal year. Additionally, he addressed the scope of work in the contract, number of trees trimmed, and their work in getting the City on track. Jim Mosher commented on the evaluations of the City Manager, City Attorney, and City Clerk, and believed that the new Council should decide on their compensation. City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION — 5:40 p.m. A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION Volume 62 - Page 114 City of Newport Beach Study Session and Regular Meeting November 25, 2014 (Government Code § 54957(b)(1)) Title: Dave Kiff, City Manager Aaron C. Harp, City Attorney Leilani Brown, City Clerk B. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6 (a)) Agency Designated Representatives: Council Member Michael F. Henn Unrepresented Employees: Dave Kiff, City Manager, Aaron C. Harp, City Attorney, and Leilani Brown, City Clerk V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill VIII. CLOSED SESSION REPORT - City Attorney Harp reported that there are no reportable actions IX. PLEDGE OF ALLEGIANCE - Council Member Petros X. INVOCATION - Council Member Curry XI. PRESENTATION AW 'M V Check Presentation to the Cultural Arts Grant Recipients City Arts Commissioner Greer discussed the Cultural Arts Grant and the importance of promoting the arts within the City. She and Library Services Director Hetherton listed the recipients of the Cultural Arts Grant and presented checks to each. XII. NOTICE TO THE PUBLIC XIII. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Council Member Daigle commented on a recent Police Department arrest along Bristol Street and the 73 Freeway where a couple was transporting high - powered assault rifles and ammunition, some of which had been reported stolen. She commended the Newport Beach Police Department for their good work. She also voiced her gratitude for being able to serve as a Council Member and thanked City staff for their hard work. Council Member Curry reported on a recent event at Hoag Hospital which honored families of those who donated organs and tissues. He announced that Donate Life will have a float in the upcoming Rose Parade and reported that he, on behalf of the City, signed a rose that will be part of the float. He Volume 62 - Page 115 City of Newport Beach Study Session and Regular Meeting November 25, 2014 indicated that Hoag Hospital presented the City with a certificate and also encouraged the public to become an organ donor. Council Member Gardner commented on a recent Harbor Commission meeting /trip around the Bay last Saturday. Council Member Petros commented on a recent community meeting in Newport Heights regarding utility undergrounding, noting that it was well attended and that the matter will be a self- assessment if they choose to do this. He emphasized that community outreach will continue. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Council Member Daigle noted that the recommendation for Item 14 (Contract with the New Irvine Ranch Conservancy for Preparation of a Resource and Recreation Management Plan for Big Canyon Restoration Area) was amended during the Study Session. Justin Cox spoke in support of Item 14, as well as restoration of habitat areas. Regarding Item 14, Jim Mosher expressed the opinion that the staff report needs further refinement in terms of who will be paying for the project and, if it is the City, there should be a budget amendment to define where the money is coming from and clarify what will happen to the settlement money. XV. CONSENT CALENDAR A. READING OF MINUTES AND ORDINANCES 1. Minutes for the November 12, 2014 Study Session and Regular Meeting [100 -2014] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. B. ORDINANCE FOR ADOPTION 3. Balboa Village A -Frame Signs Interim Ordinance [100 -20141 a) Find adoption of the interim ordinance is categorically exempt under Section 15311 of the State California Environmental Quality Act Guidelines; and b) Conduct second reading and adopt Ordinance No. 2014 -18, An Interim Ordinance of the City Council of the City of Newport Beach Allowing A -frame Signs in Balboa Village Commercial Zoning Districts. C. RESOLUTIONS FOR ADOPTION 4. Adopt Resolutions and Agreements for Inclusion of Properties within the City's Jurisdiction in the Figtree and CaliforniaFirst Property Assessed Clean Energy (PACE) Financing Programs [381100 -20141 a) Adopt Resolution No. 2014 -94, A Resolution of the City Council of the City of Newport Beach Authorizing the City of Newport Beach to Join the Figtree PACE Program, and Authorizing the California Enterprise Development Authority to Conduct Contractual Assessment Proceedings and Levy Contractual Assessments within the Territory of the City of Newport Beach; Volume 62 - Page 116 City of Newport Beach Study Session and Regular Meeting November 25, 2014 b) Approve an Associate Membership Agreement (C -5985) by and Between the California Enterprise Development Authority and the City of Newport Beach; c) Adopt Resolution No. 2014 -95, A Resolution of the City Council of the City of Newport Beach Authorizing the City to Join the CaliforniaFIRST Program, and Authorizing the California Statewide Communities Development Authority to Accept Applications from Property Owners, Conduct Contractual Assessment Proceedings and Levy Contractual Assessments within the Territory of the City of Newport Beach; and d) Approve the Amended and Restated Joint Exercise of Powers Agreement (C -5986) Relating to the California Statewide Communities Development Authority. 5. Adopt a Resolution Supporting an Application by the City of Costa Mesa for the OCTA Measure M2 Regional Traffic Signal Synchronization Program for the Fair Drive -Del Mar Avenue- University Avenue Project [100 -20141 Adopt Resolution No. 2014 -96, A Resolution of the City Council of the City of Newport Beach Supporting an Application by the City of Costa Mesa for the Orange County Transportation Authority's (OCTA) Measure M2 Traffic Signal Synchronization Program Funding for the Fair Drive -Del Mar Avenue- University Avenue Street Corridor Synchronization Project. 6. Adopt a Resolution for Submittal of the Coast Highway Traffic Signal Synchronization Project Application to Orange County Transportation Authority Measure M2 Regional Traffic Signal Synchronization Program [100 -2014] Adopt Resolution No. 2014 -97, A Resolution of the City Council of the City of Newport Beach Approving the Submittal of the Coast Highway Traffic Signal Synchronization Project for the Orange County Transportation Authority's (OCTA) Measure M2 Traffic Signal Synchronization Program Funding. Mayor Hill recused himself from this item since he owns property within 500 -feet of Pacific Coast Highway. Council Member Gardner recused herself from this item since the road projects impact Pacific Coast Highway, which is near her property. 7. Approval of Measure M2 Expenditure Report [100 -2014] Adopt Resolution No. 2014 -98, A Resolution of the City Council of the City of Newport Beach Concerning the Measure M2 Expenditure Report for the City of Newport Beach for the Fiscal Year Ending June 30, 2014, and approving the M2 Expenditure Report, substantially to form, subject to technical revisions in conformance with OCTA guidelines. Mayor Hill recused himself from this item since he owns property within 500 -feet of Pacific Coast Highway. Council Member Gardner recused herself from this item since the road projects impact Pacific Coast Highway, which is near her property. Council Member Henn recused himself from this item due to a consulting relationship with a business in Via Lido Plaza. D. CONTRACTS AND AGREEMENTS 8. 2014 -2015 Playground Improvements - Award of Contract No. 5855 (CAP15 -0030 and CAP15 -0031) [381100 -2014] a) Approve the project plans and specifications; Volume 62 - Page 117 City of Newport Beach Study Session and Regular Meeting November 25, 2014 b) Award Contract No. 5855 to Malibu Pacific Tennis Courts, Inc. (Malibu Pacific) for the Total Bid Price of $119,800.00, and authorize the Mayor and the City Clerk to execute the contract; and c) Establish an amount of $18,200.00, approximately 15 percent, to cover the cost of unforeseen work. Council Member Gardner recused herself from this item since the playground is located near her property. 9. Amendment No. 3 to Management Agreement with New Irvine Ranch Conservancy for the Buck Gully Open Space Reserve (C -3905) [381100 -20141 Authorize Amendment No. 3 to the Management Agreement with Irvine Ranch Conservancy, a private not - for - profit, and re- assign and transfer all the land management rights and responsibilities to their new corporation title of New Irvine Ranch Conservancy, a public non - profit. 10. Approval of Two Orange County Sanitation District (OCSD) Dry Weather Urban Runoff Diversion Agreements [381100 -20141 Approve the two Dry Weather Urban Runoff Discharge diversion agreements: one at Back Bay Drive near Newport Dunes (C -5715) and the other located in Big Canyon Creek just downstream of MacArthur Boulevard adjacent to the 11th Fairway at Big Canyon Country Club (C- 5988). Council Member Gardner recused herself from this item due to a relationship with the Newport Bay Conservancy. Council Member Curry recused himself from this item since he sits on the OCSD Board of Directors. 11. Printing Services Contract for Newport Navigator Brochure (C -5989) [381100 -20141 a) Award a three year (3) printing services contract for the Newport Navigator brochure to Trend Offset Printing Services, Inc. (Trend) of Irvine for the total not to exceed bid price of $311,967 ($103,989 each year) and authorize the Mayor and the City Clerk to execute the contract; and b) Authorize the Recreation & Senior Services Director to award up to two (2) additional years of printing services for the Newport Navigator brochure to Trend at the same annual not to exceed price of $103,989. 12. Amendment No. 3 to Professional Services Agreement with Rabben/Herman Design Office for Additional Marina Park Design Services (CAP09 -0070) (C -3897) [381100 -2014] Approve Amendment No. 3 with Rabben/Herman Design Office of Newport Beach, CA for additional professional design services for the Marina Park Project at a not -to- exceed price of $120,742.00, and authorize the Mayor and City Clerk to execute Amendment No. 3. 13. Amended Joint Powers Agreement for Integrated Law and Justice Agency for Orange County and Approval of Purchase of Electronic Citation System (C -3579) [381100 -20141 a) Approve the Restated and Amended Joint Powers Agreement for Integrated Law and Justice Agency for Orange County; b) Direct the City Clerk to provide a minute order to the ILJAOC Recording Secretary confirming the City Council's approval of the amended JPA; and c) Approve a Letter of Commitment for the procurement of software, hardware, and services necessary for participation in the countywide ILJAOC electronic citation system, in the amount of $204,163.48, and authorize the City Manager to sign the Letter of Commitment. Volume 62 - Page 118 City of Newport Beach Study Session and Regular Meeting November 25, 2014 14. Contract with the New Irvine Ranch Conservancy for Preparation of a Resource and Recreation Management Plan (RRMP) for Big Canyon Restoration Area (C -5990) [100- 2014] Approve Professional Services Agreement with the New Irvine Ranch Conservancy at a not -to- exceed price of $169,060.00 for the preparation of a RRMP for Big Canyon, and authorize the City Manager and City Clerk to execute the Agreement with the New Irvine Ranch Conservancy. Council Member Gardner recused herself from this item due to a relationship with the Newport Bay Conservancy. E. MISCELLANEOUS 15. Planning Commission Agenda for the November 20, 2014 Meeting [100 -2014] Receive and file. 16. Annual Reporting on Development Impact Fees & Development Agreements [100 -2014] Staff recommends that the City Council receive, review and file the Annual Reports on Development Impact Fees and Development Agreements. 17. Request to Construct Private Improvements within the Public Alley Right- of-Way located adjacent to 401 and 403 Heliotrope Avenue (C -5991) [381100 -2014] a) Waive City Council Policy L -6, Private Encroachments in the Public Rights -of -Way, to allow a retaining wall up to 6 -foot 2- inches in height encroaching up to 12 feet into the public alley right -of -way adjacent to 401 and 403 Heliotrope Avenue; and b) Direct Staff to enter into an Encroachment Agreement with the owner and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. Council Member Gardner recused herself from this item since the project is within 500 - feet of her property. 18. Human Services Grants for Fiscal Year 2014 -2015 [100 -2014] Pursuant to City Council Policy A -12, find that the organizations listed below have worthy projects or programs that serve residents and are beneficial to resident's quality of life and authorize the allocation of $25,000 in Human Services Grants in the following manner: Youth Employment Services (Harbor Area) $4,500 Serving People in Need (SPIN) $3,500 Orange County Council on Aging $5,000 Advocates for Grandparent - Grandchild Connection $3,000 Newport Harbor High School $4,000 Boys & Girls Club of the Harbor Area $5,000 $25,000 19. Request to Install New Private Improvements within the Via Oporto Public Right -of- Way in Lido Marina Village (C -5992) [381100 -2014] a) Waive Council Policy L -6, Private Encroachments in the Public Rights-of-Way, to allow recessed planters, raised planters not to exceed 36- inches in height, decorative wood deck pedestrian crosswalks, bike racks, private landscaping and irrigation improvements and appurtenances that encroach in excess of 1 -foot into the Via Oporto public right -of -way, contingent upon all conditions of the Encroachment Permit process being met; and Volume 62 - Page 119 City of Newport Beach Study Session and Regular Meeting November 25, 2014 b) Direct staff to enter into an Encroachment Agreement with the Owners and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. Council Member Henn recused himself from this item due to a consulting relationship with a business in Via Lido Plaza. Motion by Mayor Pro Tem Selich, seconded by Council Member Curry, to approve the Consent Calendar; noting the amended recommendation on Item 14; and noting the recusals by Mayor Hill on Items 6 and 7; Council Member Gardner on Items 6, 7, 8, 10, 14 and 17; Council Member Henn on Items 7 and 19; and Council Member Curry on Item 10. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR - None XVII. PUBLIC COMMENTS ON NON - AGENDA ITEMS Bob McCaffrey thanked Council for not making a decision on compensation, noting that it should be decided by the next Council. Justin Cox commented on a maintenance issue relative to the irrigation system for the Upper Bayview area, provided a handout, and thanked Council for their consideration. Jim Mosher commented on the selection of the City's Mayor and Mayor Pro Tem and on a policy related to Council meetings in the month of December. He added that it would be helpful for the public to know if there will be a single Council meeting in December this year, the time of the meeting, and if the seating of the new Council will be in the beginning or end of the meeting. City Manager Kiff reported that, tentatively, the intent is to have one meeting in December which may start at 6:00 p.m. or 7:00 p.m. He added that there is no business planned for that meeting other than recognition of outgoing Council Members and the seating of the new Council Members. A new Mayor and Mayor Pro Tem will also be selected at that time. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Henn reported on a recent Finance Committee meeting, including items that were on the agenda and their respective actions. He added that a report will be presented to the City Council in January. Mayor Pro Tem Selich announced a meeting of the General PlanlLCP Implementation Committee on December 3, 2014, at 12:30 p.m. in the Crystal Cove Conference Room. XIX. PUBLIC HEARINGS 20. Balboa Village Parking Management District and Resident Parking Permit Program (PA2014 -016) [100 -20141 Principal Planner Campbell provided a PowerPoint presentation to discuss public outreach, project location, surrounding areas, and details of the various programs. Volume 62 - Page 120 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Council Member Gardner noted receiving a letter regarding shared parking and reported that the plan allows for shared parking, but does not mandate it. In response to Council Member Petros' question, Principal Planner Campbell reported that all of the programs will be monitored and that yearly evaluations will be conducted. Principal Planner Campbell also addressed programs that will require Coastal Commission review, public outreach, education, and open enrollment. Council Member Henn noted that this is Part 2 of a comprehensive and integrated plan providing funding and governance mechanisms that allow for Part 1 of the plan to move forward. He added that Part 2 is, in itself, an integrated plan and that all of the parts are interdependent. He addressed the parking fees for use in the area and reported that the fee revenues make the plan self - funding for six or seven years. He commented on the permit fee and acknowledged that all comments have not been favorable, but stressed that there has been a considerable effort to listen to the public. Oft Mayor Hill opened the public hearing. Dominic Tordjmann expressed concern that apartment building owners have been overlooked since the plan does not allow for landlords or maintenance crews to obtain parking passes. He hoped that Council will consider the interests of area landlords and allow them to purchase parking permits so they can have access to their properties. Karl Durow objected to the inconvenience of the plan and suggested using hang tags. Marianne Zippi thanked staff for its work on this issue, but expressed concern with the residential permit program since residents will be Forced to buy a permit in order to park in front of their homes. She believed that, anytime residents are forced to contribute funds to government, it is a tax. She added that the plan discriminates against residents of specific areas and referenced the Municipal Code related to residential permit parking, as well as the survey conducted by the City. She expressed the opinion that this Council should let the new Council address this issue. Resident of 216 East Bay Avenue thanked Council for their service and noted that residents have not seen nor signed a petition regarding their desire for residential permit parking. He noted the need for increased transparency regarding this issue and asked that Council carefully analyze the matter. Lesley Miller noted the need for parking on the Peninsula and suggested encouraging off - Peninsula parking. She indicated that she would like the program expanded to include Peninsula Point. John Hooten expressed the opinion that the proposed parking programs will not solve existing parking problems. Deanna Schnabel spoke in support of the parking permit programs, believing that they are consistent with other urban beach communities, adheres to the consultant's recommendations, and addresses the year -round parking congestion that will follow the revitalization efforts that the City has invested in Balboa Village. W.R. Dildine expressed support for the programs and noted that the public has had the opportunity to respond to the proposed plans, but have not done so. He thanked Council for its efforts in the revitalization of the City. Volume 62 - Page 121 City of Newport Beach Study Session and Regular Meeting November 25, 2014 George Schroeder expressed concerns regarding expanding the program to the Peninsula Point area and noted the effects of the program to areas outside the parking permit boundaries. Jim Mosher noted the need for a similar program at the Newport Pier/McFadden Square area and referenced areas outside Balboa Village where suspension of programs are being proposed. Howard Hall commented on residential parking west of Adams Street and provided a history of the issue. He believed that, if this matter is approved, it will lead to more illegal parking in alleys. Allen Maxfield spoke in opposition to the proposed plan and believed that most residents are against it. Hearing no further testimony, Mayor Hill closed the public hearing. Council Member Henn clarified that the revenue stated is the parking revenue in the commercial area of Balboa Village and is not from the Tidelands parking lots, and is not the money being raised as a result of the parking permit fee. In response to Council Member Henn's question, Principal Planner Campbell addressed the survey and its results, and believed that the high percentage of those in support of the program is an indication that a majority of residents support it. Council Member Gardner stated that she is not a fan of permit parking and commented on unique conditions in Balboa Village. She wondered whether the survey was sufficient and suggested issuing another survey now that additional information is available. Council Member Petros commented on the permit fee and BVAC's request to set it as low as possible, noting that it is clearly not a revenue - generating effort. Council Member Daigle referenced the Municipal Code provisions relative to surveys, believing that it states 50% plus one of residents in the area, not 50% of residents who respond to the survey. She stated that the survey results must be carefully tracked. City Attorney Harp clarified applicable provisions of the Municipal Code, noting that findings must be made to the reasonable satisfaction of the City Council. One of the criteria is that a majority of residents be in support of a residential parking program. However, it is up to the discretion of Council to decide whether or not the majority has been reached. Council Member Henn noted that there was a certain amount of detail in the survey that was conducted. In response to his question, Principal Planner Campbell addressed the information in the survey that described the program, adding that the only thing that has changed in the survey is the decreased permit fee. Council Member Gardner asked whether Council will vote on the recommendations as a package or individually. City Attorney Harp indicated that Council may vote as it pleases. Council Member Henn confirmed that, while it is an integrated set of proposals, Council has the discretion to address each individually. Council Member Gardner expressed concern with the permit parking and whether the desire of the majority of residents has been reflected. Volume 62 - Page 122 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Council Member Daigle agreed with Council Member Gardner's comments, adding that she does not see evidence that the majority of residents support the program. In response to her question, Principal Planner Campbell clarified what is being proposed relative to hang tags versus a license plate recognition system. Additionally, he explained the online system and noted that both systems could be implemented. In response to Mayor Hill's question, Council Member Henn noted that the program must go before the Coastal Commission. Principal Planner Campbell stated that staff believes there is enough information for implementation. Council Member Petros summarized the process, noting that the original intention was to intent new development in Balboa Village and revitalize the area. He addressed other revitalization efforts and reported that it was recognized that parking in the area was a hindrance to enhancing Balboa Village. He added that the money generated from the area stays in the area. He discussed the intention of the residential parking permit program. Motion by Council Member Petros, seconded by Council Member Gardner, to a) introduce Ordinance No. 2014 -20, An Ordinance of the City Council of the City of Newport Beach Adopting Code Amendment No. CA2014 -001 Adopting the Balboa Village Parking Management District Plan and Establishing the Balboa Village Parking Management Overlay District (PA2014 -016) (Program Two - Parking Management District Plan and Overlay District), and finding the action exempt from CEQA pursuant to Section 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), 15303 (New Construction), 15311 (Accessory Structures) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, and pass to second reading on January 13, 2015; b) introduce Ordinance No. 2014 -21, An Ordinance of the City Council of the City of Newport Beach Amending Newport Beach Municipal Code Sections 12.44.025 and 12.44.027 and Adding Section 12.44.029 Relating to Parking Funds (PA2014 -016) (Program Three - Parking Benefit District), and finding the action not subject to CEQA pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, and pass to second reading on January 13, 2015; c) adopt Resolution No. 2014- 101, A Resolution of the City Council of the City of Newport Beach, California Establishing Funding for the Area Benefit District Reserve (PA2014 -016) (Program Three - Parking Benefit District), and finding the action not subject to CEQA pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; d) introduce Ordinance No. 2014 -22, An Ordinance of the City Council of the City of Newport Beach Amending Section 12.44.040 of the Newport Beach Municipal Code Pertaining to On- Street Parking Meter Fees in Balboa Village (PA2014 -016) (Program Four - Public Parking Fees (on- street)), finding the action not subject to CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, and pass to second reading on January 13, 2015; e) adopt Resolution No. 2014 -102, A Resolution of the City Council of the City of Newport Beach, California Establishing a Revised Schedule of Parking Fees for Off- Street Parking Meter Zones 17, 18, 23, 28, and 29 Located in Balboa Village (PA2014 -016) (Program Four - Public Parking Fees (off- street public lots)), and finding the action not subject to CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; and f) adopt Resolution No. 2014 -103, A Resolution of the City Council of the City of Newport Beach, California Establishing a Parking Permit System for Balboa Village (PA2014 -016) (Program Five - Other Parking Programs and Permits), and finding the action not subject to CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3. The motion carried by the following roll call vote: Volume 62 - Page 123 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill Council Member Petros reiterated the objective of the approved programs, but noted there is no protection for residents should the enhancement grow and strip parking from the area. He suggested directing staff to determine community desire for the residential parking permit program. Mayor Hill added that every time Council tries to solve a problem in one area, it potentially creates another problem in other areas. Council Member Gardner commented on the need to go before the Coastal Commission with definite findings, including resident support. Council Member Daigle noted the need to ensure that the Municipal Code provisions are being adhered to relative to the support of 50% plus 1 of residents, noting that currently, only 25% of residents support the program. Motion by Council Member Henn to introduce Ordinance No. 2014 -19, An Ordinance of the City Council of the City of Newport Beach Amending Sections 12.68.040 and 12.68.060 of the Newport Beach Municipal Code Establishing the Balboa Resident Parking Permit Program on the Balboa Peninsula (PA2014 -016) (Program One - Residential Permit Parking Program (RP3)), and finding the action exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15301 (Existing Facilities) and 15311 (Accessory Structures) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, and pass to second reading on January 13, 2015. The motion died for lack of a second. Motion by Council Member Gardner, seconded by Council Member Daigle, to direct staff to come back with information on how to conduct an adequate survey. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill Noes: Council Member Henn 21. Balboa Marina West Mitigated Negative Declaration Appeal Located at 151 and 201 East Coast Highway (PA2012 -103) [100 -20141 Mayor Hill provided information on the hearing process Planning Manager Alford provided a PowerPoint presentation to address the appeal, general project location, surrounding properties /uses, project overview, development areas, waterside plan, landside plan, the marine commercial building, next steps, and the process. In response to Council Member Daigle's question, Planning Manager Alford reported that staff is asking Council to approve the Planning Commission's recommendations regarding the Mitigated Negative Declaration (MND). Planning Manager Alford addressed CEQA versus project review, General Plan, LCP and Zoning consistency, key sight development review, Condition Use Permit findings, and details of the appeal. Volume 62 - Page 124 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Tracy Zinn, T &B Planning, addressed the MND and its conclusions, impacts and mitigation of those impacts, circulation of the MND, comments received and responses to the MND, and Planning Commission's review and determination. In response to Council Member Gardner's question relative to the review of the Back Bay Landing project, Ms. Zinn confirmed that it was analyzed, but inadvertently omitted from the list in the MND document. She reported that it was listed in the traffic report and was added in the errata table presented to the Planning Commission. Ms. Zinn further addressed noise impacts. In response to Council Member Petros' question, Ms. Zinn reported that the theoretical project that was utilized was described in the staff report, but any specific project would need to be within the parameters that were analyzed. Ms. Zinn addressed the possibility of an outdoor patio and related noise, and provided responses to each of the items listed on the appeal. She addressed aesthetics, the appropriateness of the MND for approval in concept, and recirculation of the MND and related CEQA guidelines. In response to Mayor Pro Tern Selich's question, City Attorney Harp reported conducting a thorough review of the comments made in the appeal. He stated that he believes that the City has complied with CEQA in all aspects and that the matter is ready for Council approval at this time. Mayor Hill opened the public hearing. Paige Gosney, attorney representing residents of Linda Isle, addressed the proximity of Linda Isle to the proposed project and listed perceived deficiencies with the MND. He expressed the opinion that the City's responses have not been adequate and noted that Council is being asked to approve an environmental document without having an actual project to analyze. He reported that the MND did not consider cumulative impacts and addressed deferred mitigation and piecemealing. He addressed noise impacts, construction impacts, and potential uses. Discussion followed regarding Irvine Ranch Water District (IRWD) servicing a project in Bayside. Mr. Gosney addressed light impacts from the area parking lot and asked that Council consider the appeal. Council Member Gardner noted that the water demand factors used were from IRWD. Planning Manager Alford noted that the MND document uses the IRWD standards, but the City will provide water service. City Attorney Harp added that it is appropriate to approve an MND before project approval and noted the necessary actions in order to avoid piecemealing. In response to Council Member Gardner's question, Planning Manager Alford noted that Back Bay Landing was also a conceptual plan with an approved MND prior to a project actually being proposed. He added that it analyzed the same area, using a much larger building, and concluded there would be no significant impacts. Regarding no mitigation requirements for pilings, Ms. Zinn reported that, at the time the original replacement project was done, there was a noise study conducted and concluded that there could potentially be some noise impacts. She indicated that part of the mitigation included monitoring and Volume 62 - Page 125 City of Newport Beach Study Session and Regular Meeting November 25, 2014 when monitoring was done, it showed that impacts were not significant in real -work conditions. Staff is relying on that data for what could occur with the subject project. Jim Jordan noted noise impacts from a prior project involved pilings being installed in the sand, but the subject area involves stone. Additionally, he noted that residents had the opportunity to review the entire Back Bay Landing project and, as a result of resident input, the building height was reduced. He expressed concerns regarding potential uses and related noise. In response to Mayor Hill's question, City Attorney Harp noted that, in accordance with the CEQA process, the public will have an opportunity to comment up to the point of project approval. Planning Manager Alford emphasized that staff analyzed the project at the height limit shown in the MND because staff wanted to look at potential impacts under a maximum - development scenario. Community Development Director Brandt reported that concerns expressed by the public will be handled at a later phase. Further, additional environmental analysis may be necessary as part of the specific project review process. Margo O'Connor noted that the channel is very narrow with commercial uses near residents. She added that the consequences of Mariner's Point have not yet been felt and that Linda Isle residents are currently dealing with the impacts of noise and light pollution. She expressed concerns with increased impacts to views and noise. Assistant City Attorney Mulvihill reported advising the Planning Commission of CEQA provisions that an environmental review is to be conducted at the earliest stage. In this case, staff agreed that it would be when the conceptual plan is in motion. She addressed the land and water sides of the project and noted that this is the earliest possible time in which to analyze the entire project. She pointed out that staff has spent a significant amount of time explaining the subsequent approval process. Mayor Hill reiterated that every point raised regarding the MND will have to be reviewed upon consideration of a specific project. Don McCallum commented on the impact of restaurant noise and asked that the City Council carefully consider the noise issue. Bill O'Connor expressed concerns with the lack of community outreach on this matter, adding that there will be problems in the future with this project and that this step will only push the problems along. He commented on problems with the existing restaurants and that moving ahead will cause problems down the road. Doug Schwartz commented on prior problems related to the Reuben E. Lee Restaurant and believed that the proposal will exacerbate problems in the future. He addressed impacts related to pilings and expressed concerns regarding the unknowns. Mr. Gosney commented on subsequent public comment opportunities and noted that the document to be approved, at this time, is the foundational document for further development that will be applied for. He believed that the right to comment on the MND will end at this time. Hearing no further testimony, Mayor Hill closed the public hearing. Assistant City Attorney Mulvihill reported that everything that the City has received as comments has been discussed by staff and the consultants. She stated that no new information has been Volume 62 - Page 126 City of Newport Beach Study Session and Regular Meeting November 25, 2014 presented tonight and reiterated the recommended Council actions. She addressed references to IRWD and noted that it is the City's Water Management Plan that this project was evaluated against and that the City's water service will serve the project. She addressed the issue of the noise study and noted that staff will need to deal with impacts if a project proposes an outdoor patio restaurant. She reiterated that the City Attorney's Office recommends approval of the MND. Council Member Petros noted that Council has the tools to mitigate potential future impacts. Mayor Pro Tem Selich indicated that he empathizes with resident concerns, but noted that this is the first step in a multi -step process. He reported that he believes the environmental document is adequate. Motion by Mayor Pro Tem Selich, seconded by Council Member Gardner, to adopt Resolution No. 2014 -99, A Resolution of the City Council of the City of Newport Beach Upholding and Affirming the Planning Commission's Approval of Mitigated Negative Declaration No. ND2013 -002 (SCH No. 2014081044) for Balboa Marina West Located at 151 and 201 East Coast Highway (PA2012 -103), pursuant to the California Environmental Quality Act (" CEQA" ). The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill 22. Film Permit Fee Suspension [100 -20141 City Manager Kiff provided a brief staff report. Motion by Council Member Gardner, seconded by Council Member Curry, to adopt Resolution No. 2014 -100, A Resolution of the City Council of the City of Newport Beach Temporarily Waiving Certain Film Permit Fees in the Master Fee Schedule; specifically (1) Film Production Application -With Film Liaison and (2) Film Permit Fee, and adopting FilmLA's fees in the Master Fee Schedule. Mayor Hill opened the public hearing. Jim Mosher commented on the outsourcing of this function and indicated that it would be helpful to understand the service that is being provided at a lower cost as a result of outsourcing. Additionally, he commented on Newport Beach and Company providing this service. Hearing no further testimony, Mayor Hill closed the public hearing. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill 23. ExplorOcean Option to Lease City Parking Lot at Palm Street (C -5993) [381100 -20141 City Manager Kiff provided a staff report and noted that there is an option to execute a lease at a later date if a project is approved, pursues funding, and achieves CEQA compliance. He emphasized that this does not impact the City Council's ability to make a decision on the project. Volume 62 - Page 127 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Council Member Henn clarified the terms of the lease and related conditions. He added that this does not bind the City to approve the project. He believed that this is a great example of a public /private project where everyone benefits. Motion by Council Member Henn, seconded by Council Member Curry, to authorize the Mayor and City Clerk to execute an Option to Ground Lease Agreement with ExplorOcean for a future Ground Lease of the Palm Street parking lot at 209 Washington Street and 600 -608 East Balboa Boulevard on the Balboa Peninsula. Council Member Petros reported the need to ensure that ExplorOcean will be able to continue its operations into the future without support from the City. He suggested an amendment to the motion to include in the Agreement under Section 3(c), the addition of language "with construction and completion, and operation for the EO Project ". Amended motion by Council Member Henn, seconded by Council Member Curry, to authorize the Mayor and City Clerk to execute an amended Option to Ground Lease Agreement with ExplorOcean for a future Ground Lease of the Palm Street parking lot at 209 Washington Street and 600 -608 East Balboa Boulevard on the Balboa Peninsula. Attorney for the Fun Zone expressed opposition to the lease, believing that it is unfair to the Fun Zone, other businesses in the area, and residents. Tom Pollack, President of ExplorOcean, agreed to the amended motion and noted benefits to the City and the public. In response to Mayor Pro Tern Selich's question, Mr. Pollack explained the need for providing ExplorOcean with the option to lease, including fundraising purposes. He thanked Council and staff involved in the process. Jim Mosher believed that this may be the wrong location for the project and commented on increased traffic and congestion during peak seasons. The amended motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill 24. Park Avenue Bridge Replacement Project Located on Balboa Island /Little Balboa Island — Adoption of Mitigated Negative Declaration and Approval of Bridge Design [100 -2014] Deputy Public Works Director Vukojevic provided a PowerPoint presentation to discuss the project location, existing conditions, project background, benefits, and the new bridge structure. In response to Mayor Hill's question, Deputy Public Works Director Vukojevic noted that glare has not been considered. He addressed a temporary bridge at Balboa Avenue and deferred to staff for a presentation of environmental issues. Senior Planner Ramirez addressed the environmental consultant, the Mitigated Negative Declaration (MND), CEQA compliance, impacts, mitigation measures, and recommendations. Deputy Public Works Director Vukojevic addressed community outreach, project funding, and the proposed schedule. Volume 62 - Page 128 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Mayor Pro Tem Selich congratulated and thanked staff for its work on this project Motion by Mayor Pro Tern Selich, seconded by Council Member Petros, to adopt Resolution No. 2014 -104, A Resolution of the City Council of the City of Newport Beach Adopting Mitigated Negative Declaration No. ND2014 -002 (SCH No. 2014101015) for the Park Avenue Bridge Replacement Project (PA2014 -135), pursuant to the California Environmental Quality Act ( "CEQA '), State CEQA Guidelines, and City Council Policy K -3; and approve the design of the Park Avenue Replacement Bridge and Temporary Balboa Avenue Bridge. John Ermatinger expressed concerns regarding noise, light pollution, and congestion. Additionally, he commented on economic impacts of the project and asked that Council consider a sequential replacement of the bridge. Rudy Baldoni spoke in opposition to the proposed temporary bridge and asked that Council consider building the new bridge, one half at a time. He addressed parking impacts, the loss of mooring and dock uses, as well as economic challenges. He asked that Council consider tabling, believing that there are several issues that need to be resolved. Don Abrams expressed concerns regarding the temporary bridge and traffic circulation on Marine Avenue, and suggested an alternative way in which traffic could be directed to avoid congestion. In response to Council Member Gardner's question, Deputy Public Works Director Vukojevic listed reasons why sequential construction of the new bridge is not recommended, including access to emergency vehicles and construction timeline savings. He addressed the construction timeline and confirmed that the purpose of the proposed asphalt is to reduce noise. Discussion ensued regarding the seismic strength of the bridge and making adjustments as necessary. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill 25. Approval of a New Third Party Administrator for Workers' Compensation Administration - AdminSure, Inc. (C -5976) [381100-20141 City Manager Kiff noted an amendment to the Agreement that was distributed for Council consideration. Motion by Council Member Gardner, seconded by Council Member Henn, to approve AdminSure, Inc. as the Workers' Compensation Third Party Claims Administration with an annual expenditure of $260,784, effective January 1, 2015. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill Noes: Council Member Petros 26. Campus Drive, San Joaquin Hills Road and San Miguel Drive Street Pavement Overlay - Award of Contract No. 5582 (CAP14 -0009) [381100 -20141 Volume 62 - Page 129 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Council Member Curry noted the importance of the resurfacing projects, especially the area at San Joaquin Hills and San Miguel, as well as Campus Drive by the airport. Motion by Council Member Curry, seconded by Mayor Pro Tem Selich, to a) approve the project plans and specifications; b) award Contract No. 5582 to All American Asphalt for the total bid price of $1,177,177.00, and authorize the Mayor and the City Clerk to execute the contract; c) establish a contingency of $18,000.00 (approximately 10 %) to cover the cost of unforeseen work; and d) approve Budget Amendment No. 15BA -023 transferring $150,000 from 7282- C2002076 to 7282- C2002070; recognizing $70,000 from the County of Orange and appropriating $70,000 to Account No. 7251- C2002070. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill 27. Ca1PERS Pension Plan Update and Payment Alternative Recommendation [100 -2014] City Manager Kiff provided a staff report and highlighted the recommendations Council Member Henn addressed the Finance Committee's responsibilities, noting that this "fresh start" assures a required dollar- average approach to eliminating the City's unfunded liabilities. He discussed the savings and the need to continue the City's fiscal discipline. Motion by Council Member Henn, seconded by Council Member Curry, to adopt the nineteen -year "fresh start" program, implement it immediately and amend the 2014/2015 budget to provide for the additional $6.6 million Year 1 cost and offset it by assigning $6.6 million of the currently- estimated $10.2 million 2013/2014 budget surplus to fund the Year 1 cost. Council Member Curry commended Council Member Henn for his leadership in this area over the years. He added that the Orange County Register endorsed this strategy by the City but missed some facts in terms of amortization and reduction of the City's workforce, among others. He listed the City's accomplishments in this regard. Council Member Petros commended Council Member Henn's leadership and efforts in this matter, and noted that, by virtue of this measure, the City will be able to continue moving its vision forward. Council Member Henn commended staff for its leadership and work in this matter. Jim Mosher commented on the objectives of this matter and previous related actions. He discussed the pension primer and asked about its status. Council Member Henn reported that Ca1PERS changed its consideration of mortality tables, as well as other matters. He added that the City did go backwards and that there is no guarantee that it will not occur again; however, indicated that this does not mean that this is not a good decision, standing alone. He added that a pension primer was completed and is currently located in the back of the City's budget. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill Volume 62 - Page 130 City of Newport Beach Study Session and Regular Meeting November 25, 2014 28. Amended and Restated Employment Agreement for the City Manager (C- 4358), City Attorney (C -4925) and City Clerk (C -4100) [381100 -2014] City Attorney Harp noted that the City Manager, City Clerk, and City Attorney will be recusing themselves on this matter and departed the Chambers. Assistant City Manager Badum provided a brief summary of the item. Council Member Henn noted that Council is responsible for assessing the performance of the City Attorney, City Manager, and City Clerk, as well as contract changes. He addressed the evaluation process, changes in compensation, and contract changes. He noted that the current Council set their goals and should properly measure the performances of the three appointees, as well as handle contract and compensation changes. He reported out the recommended final changes associated with the contracts and compensation, and results of the evaluation. Regarding City Manager Kiff, he noted that, although his performance justifies changing compensation to a level that is at or above median, Council felt that correcting it all in one step with a raise of over 11% would be imprudent. Therefore, it is recommended that next year, in the event City Manager Kiffs performance continues to be satisfactory, his compensation be increased to at least the median. He provided specific information regarding compensation changes, as well as the effective date of the merit per diems. He added that the contracts allow for the incumbents to increase their pension contributions, thereby offsetting the increases in compensation. Council Member Gardner agreed with Council Member Henn's statement that this Council should act on this matter. Jim Mosher believed it would be appropriate for this Council to make its recommendations and defer the final decision to the new Council. He added that, while it has been three years since City Manager Kiff received an increase in compensation, he noted that the City Clerk's contract was last negotiated in March of this year and believed that a 6% raise in eight months is more than it might seem. He expressed concerns with merit adjustments and believed they conflict with the California Constitution related to extra compensation for a public officer or employee after a service has been rendered. Council Member Henn noted that the forms of the contract have been reviewed by the City Attorney's Office, as well as outside counsel. He indicated that Council is confident that what is being proposed is legal under the California Constitution. Council Member Curry commented positively and listed the accomplishments of City Manager Kiff, City Attorney Harp, and City Clerk Brown. Council Member Daigle commented on the accomplishments of the City Manager, City Attorney, and City Clerk, noting that major, quality of life issues for the community has been addressed successfully. Mayor Hill noted that good policies alone do nothing unless the City has good staff to carry them forward. Motion by Council Member Henn, seconded by Council Member Gardner, to authorize the Mayor to execute the Third Amended and Restated Employment Agreement between the City of Newport Beach and Dave Kiff, City Manager, subject to those terms and conditions approved by the City Council; authorize the Mayor to execute the Second Amended and Restated Employment Agreement between the City of Newport Beach and Aaron Harp, City Attorney, subject to those terms and conditions approved by the City Council; and authorize the Mayor to execute the Second Volume 62 - Page 131 City of Newport Beach Study Session and Regular Meeting November 25, 2014 Amended and Restated Employment Agreement between the City of Newport Beach and Leilani Brown, City Clerk, subject to those terms and conditions approved by the City Council. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill 3M. MOTION FOR RECONSIDERATION Council Member Gardner suggested reconsidering the matter regarding the Great Scott contract (November 12, 2014 Regular Meeting, Item 27, Review and Amendment — Tree Services Agreement with Great Scott Tree Services), noting that the contractor was not aware that it was being considered and believed that he should be given the opportunity to explain why he feels the contract should not be put out for bid. Motion by Council Member Gardner, seconded by Council Member Henn, to reconsider the Great Scott Contract item from the November 12, 2014 City Council meeting. Council Member Curry noted that he made the motion that the item should go out to bid and noted that is the issue at hand, and not whether Great Scott is doing a good job or not. He added that there was not a good evaluation of costs and that the City is currently off by 50% of the contract cost. He stated that there should be a process with good comparable data from vendors where Council will be able to make an informed decision. Council Member Daigle agreed with Council Member Curry, adding that the City did not correctly anticipate the volume of work. She believed that it makes sense to rebid the work given the changes in volume. �� Mayor Hill agreed with Counct s a prbval of directing staff to put the matter out for bid. Council Member Henn stated that he was in favor of the original motion but changed his mind. He indicated that he understood that the additional work was done in recompense of work that had not been done under the prior contract, so this may be a case in which the volume is not different than the original request for proposal (RFP). He believed that a decision like this should be based on careful and accurate information. Council Member Gardner stated that she would like complete information before taking the next step Scott Griffiths, Great Scott Tree Service, Inc., reported working with staff and that the intent is to do very little trimming and mostly conduct planting. He addressed extra trimming done last year in order to catch up from the prior contract and addressed the budget. He asked that his company be allowed to finish one complete fiscal year before putting the matter out to bid. Additionally, he commented on his company's investments in order to be able to fulfill the contract. The motion failed by the following roll call vote: Ayes: Council Member Gardner, Council Member Henn, Mayor Pro Tern Selich Noes: Council Member Petros, Council Member Curry, Council Member Daigle, Mayor Hill Volume 62 - Page 132 City of Newport Beach Study Session and Regular Meeting November 25, 2014 XXII. ADJOURNMENT -Adjourned at 11:20 p.m. in memory of Marion Knott The agenda for the Regular Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on November 20, 2014, at 4:00 p.m. City Clerk Recording Secretary Volume 62 - Page 133 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting December 9, 2014 I. ROLL CALL - 5:00 p.m. Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill II. PUBLIC COMMENTS Regarding the Closed Session item, Jim Mosher believed that the City can improve transparency, noted the changes already made to a crosswalk near Newport Harbor High School, and believed that there was a lack of public input in the claim and lawsuit. He also suggested that public comments be allowed again later in the evening after the new Council Members are seated. Carl Cassidy thanked Council for their service. He asked where the costs of lawsuits were shown within the City's budget and expressed its importance. Council Member Henn clarified that the losses for litigation/tort cases are included in the calculation of the internal service fund for public liability exposures. Although it is accounted for, he noted that it is not listed by individual cases. City Attorney Harp confirmed that, when a settlement agreement is executed, it is publicly reported out if that is the final action of the City Council. City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. III. CLOSED SESSION - 5:09 p.m. A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code § 54956.9(a), (d)(1)): 1 matter Crystal Morales u. City of Newport Beach, et al. Orange County Superior Court Case No. 30- 2012- 00606450- CU- PO -CJC IV. RECESS V. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VI. ROLL CALL Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill VII. CLOSED SESSION REPORT - City Attorney Harp reported that there were no reportable actions VIII. PLEDGE OF ALLEGIANCE - Council Member Gardner IX. INVOCATION - Pastor Pete McKenzie Volume 62 - Page 134 City of Newport Beach Regular Meeting December 9, 2014 X. PRESENTATIONS Presentation of a Resolution from the Southern California Association of Governments (SCAG) to Council Member Leslie Daigle Kevin Gilhooley, Southern California Association of Governments (SCAG) Orange County Regional Affairs Officer, presented Council Member Daigle with a Resolution for her vision and leadership during her tenure on the SCAG Board of Directors - Regional Council. Transportation Corridor Agencies Resolution Presentation to Mayor Rush Hill Michael Kraman, Chief Executive Officer of Orange County's Transportation Corridor Agencies, expressed gratitude to Mayor Hill for his leadership and representation on the San Joaquin Hills Transportation Corridor Agencies, and presented Mayor Hill with a Resolution. Presentation of Certificates by Supervisor Moorlach to Outgoing Mayor and Council Members Supervisor Moorlach thanked Mayor Hill and outgoing Council Members Henn, Gardner, and Daigle for their representation and presented them with certificates. Mayor Hill thanked Supervisor Moorlach for his leadership and support of the existing John Wayne Airport (JWA) Settlement Agreement. Presentation of Gifts to Outgoing Council Members Michael Henn, Leslie Daigle, and Nancy Gardner, and Remarks by Outgoing Council Members Council Member Curry presented Resolutions to outgoing Council Members on behalf of former Assemblyman Alan Mansoor. Council Member Petros, on behalf of Congressman Rohrabacher, thanked and presented the outgoing Council Members with a Certificate of Recognition. City Manager Kiff presented a gift on behalf of City staff, thanked the outgoing Mayor and Council Members, and wished them well. Council Member Henn expressed how proud he was of this Council's accomplishments since 2006. He commended the City Council, City staff, and residents, and emphasized the need to have such dedication in order to be successful. He listed some accomplishments from the past eight years, noted that issues were dealt with, and indicated that the Council never left issues for somebody else to deal with. Additionally, he noted how items were handled in the public forum, how things did not get personal since the purpose was to solve problems, and offered advice to the incoming Council Members. He thanked his wife, Lynn, and family for their support, the current Council, City staff, and City residents for allowing him the opportunity to serve. Council Member Daigle personally thanked former Mayors Tod Ridgeway, John Heffernan, Don Webb, and Steve Bromberg for their support and assistance that began ten years ago. She highlighted three major items completed during her tenure: the OASIS Senior Center, the City's Triple -A credit rating, and the Upper Newport Bay restoration project. She discussed issues such as Marina Park, Sunset Ridge Park, dredging, and the City's modern traffic signal synchronization system, but also listed current items not yet resolved, such as Banning Ranch, sea walls on Balboa Island (noting that she thought that Island property owners should not have to pay special assessments for sea wall improvements), and more. She thanked former Senator Marian Bergeson, Police Chief Johnson, The Irvine Company, City Manager Kiff, the Public Works Department, and Volume 62 - Page 135 City of Newport Beach Regular Meeting December 9, 2014 City staff. She noted that she leaves with gratitude and appreciation for the privilege to have served the City. Council Member Gardner indicated that she will miss the residents, City staff, and the current Council. Presentation of Gifts and Gavel Plaque to Outgoing Mayor Rush Hill and Remarks by Outgoing Mayor Mayor Pro Tem Selich presented Mayor Hill with a Resolution on behalf of former Assemblyman Alan Mansoor. Council Member Petros, on behalf of Congressman Rohrabacher, thanked and presented Mayor Hill with a Certificate of Recognition. Mayor Pro Tem Selich provided Mayor Hill's history of service to the City since 1995, such as serving on the Economic Development Committee, the Chamber of Commerce, schools, and other organizations within the community. He thanked Mayor Hill for all of his service to the City and presented him with a gavel plaque. Mayor Hill indicated that a Council Member does three things: 1) they hire three people to build a City staff that serves as a resource and ensures City Council Policy is executed, 2) they govern based on City Council Policy, the Municipal Code, and Charter, and 3) they solve community problems in the best interest of the 87,000 residents. He expressed that it was a privilege to serve with the current Council and as Mayor. He noted that the accomplishments made were all aimed at providing efficient municipal services under a balanced budget, growing reserves, and enhancing overall quality of life. He reported that Council has worked with City labor groups, maintained infrastructure, efficiently delivered municipal services, paid attention to roads and landscaping, and added generational facilities all within the City's operational budget without raising taxes. He commented on the success of the Newport Dividend program which saved property owners approximately $1.8 million in fees, created new construction and jobs, and noted it will provide revenue to the City through increased property values and retail sales. He expressed his appreciation to all City staff and gave special thanks to his wife, Linda, and family for allowing him the time to do this civic job. He thanked his staff, Whit Peterson and Alan Limon, and his business partner, Lawrence Frapwell. He concluded by thanking former Mayors Steve Rosansky and Ed Selich, and the residents of the City. M. NOTICE TO THE PUBLIC MI. PUBLIC COMMENTS ON NON - AGENDA ITEMS Assemblyman Don Wagner was introduced by Mayor Hill. Assemblyman Wagner thanked the City Council for serving their shared constituents and welcomed the incoming Council Members. Dorothy Kraus thanked the outgoing Mayor and Council Members for their service, and congratulated the incoming Council Members. As treasurer of the political action committee that defeated Measure Y, she stated that she looks forward to working with the new City Council. Jim Mosher thanked the outgoing Council Members for their service, questioned why the December meetings have become exclusively ceremonial, and welcomed the incoming Council Members, reminding them that they can invite the public to speak to them at multiple times, as long as all speakers are treated equally. Volume 62 - Page 136 City of Newport Beach Regular Meeting December 9, 2014 Justin Cox thanked Council for their efforts, especially Council Member Daigle for her work on Upper Newport Bay issues. Denys Oberman thanked the outgoing Council Members and welcomed the incoming Council Members. On behalf of herself and members of the community, she indicated that they look forward to new strategic direction. She discussed balance, regenerating interest, protecting views, and open mindedness. XIII. REORGANIZATION - SPECIAL ORDER OF BUSINESS - 7:00 P.M. A. Certification of General Municipal Election [391100-20141 City Clerk Brown introduced the item and provided a brief staff report. Motion by Council Member Gardner, seconded by Council Member Petros, to adopt Resolution No. 2014 -105, A Resolution of the City Council of the City of Newport Beach Reciting the Fact of the General Municipal Election held on Tuesday, November 4, 2014, Declaring the Result and Such Other Matters as Provided by Law. Jim Mosher referenced Exhibit 2 to the Resolution in regards to the grand totals, reported a problem relative to a vote discrepancy, explained the discrepancy per the Registrar of Voters (ROV) Office, and requested that the City encourage the ROV to amend their process in order to provide proper reporting. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tom Selich, Mayor Hill B. Administration of Oath of Office [391100 -20141 Pastor Pete McKenzie provided thoughts and a prayer of dedication. City Clerk Brown called newly - elected Council Members Diane Dixon, Duffy Duffield, Kevin Muldoon, and Scott Peotter forward. The Honorable James E. Rogan, Judge of the Superior Court of the State of California, administered the Oath of Office prescribed in the State Constitution to the elected officials individually, and City Clerk Brown presented a Certificate of Election to each Council Member. The newly - elected Council Members were seated at the Council dais. C. Election of Mayor City Clerk Brown, in presiding, placed all members of the City Council on an equal basis to nominate and elect. Council Member Dixon nominated Council Member Selich for the position of Mayor. Motion by Council Member Curry, seconded by Council Member Muldoon, to close the nominations. The motion carried by the following roll call vote: Volume 62 - Page 137 City of Newport Beach Regular Meeting December 9, 2014 Ayes: Council Member Dixon, Council Member Petros, Council Member Duffield, Council Member Muldoon, Council Member Selich, Council Member Peotter, Council Member Curry Interested parties were invited to address the City Council. There being none, public comments were closed. City Clerk Brown asked if there was any further discussion relative to the nomination for Mayor. There being no further discussion, City Clerk Brown conducted oral votes for the Mayor seat. Without objection, Council Member Selich was selected as the Mayor of the City of Newport Beach for 2015. Mayor Selich took his place at the Council dais. D. Election of Mayor Pro Tem Mayor Selich, in presiding, placed all members of the City Council on an equal basis to nominate and elect. WVW 'W Council Member Muldoon nominated Council Member Dixon for the position of Mayor Pro Tem. Motion by Council Member Peotter, seconded by Council Member Muldoon, to close the nominations. The motion carried by the following roll call vote: Ayes: Council Member Dixon, Council Member Petros, Council Member Duffield, Council Member Muldoon, Mayor Selich, Council Member Peotter, Council Member Curry Interested parties were invited to address the City Council. There being no public comments, Mayor Selich asked if there was any further discussion relative to the nomination for Mayor Pro Tem. There being no further discussion, Mayor Selich conducted oral votes for the Mayor Pro Tem seat. Without objection, Council Member Dixon was selected as the Mayor Pro Tem of the City of Newport Beach for 2015. Mayor Pro Tem Dixon took her place at the Council dais. E. Seating Arrangements for City Council The Council Members decided on the seating arrangement for the Council dais, with the senior Council Members having first preference. The following seating order was determined (left to right): Scott Peotter — Tony Petros — Diane Dixon — Ed Selich — Keith Curry — Duffy Duffield — Kevin Muldoon Volume 62 - Page 138 City of Newport Beach Regular Meeting December 9, 2014 F. Remarks Elected Council Members' Remarks Mayor Pro Tem Dixon thanked the residents and expressed gratitude for the opportunity to represent the public and the City. She thanked outgoing Council Members for their service, all those who encouraged and supported her throughout the campaign, her fellow Council Members, and also her husband and family. She pledged to act in the best interest of the City and requested continued public involvement from residents. Council Member Duffield thanked his wife and family for their support. He also thanked the outgoing Council Members, all those who supported him, and his fellow Council Members. Council Member Muldoon thanked his parents, family, those who supported him, and his fellow newly - elected Council Members. He expressed how honored he is to serve and hopes to protect property rights and public safety, and reduce local taxes and fees. Council Member Peotter thanked God and our Country. He thanked his wife, family, and all his supporters. He believed that the City is in really good shape and spoke as to how proud he is to be part of this leadership. New Mayor Remarks: Mayor Selich expressed appreciation to his fellow Council Members for choosing him to lead in 2015 and pledged to lead with openness, respect, and equanimity. He commented on the recent election and the need to govern as a consensus - builder. He believed that City Council Members have the same motivations and will come together for the betterment of the City. He recognized the outgoing Council Members and conveyed his appreciation for their honesty, integrity, hard work, and willingness to take on tough issues. He referred to a new approach due to the election, noted that change comes with the new officials and approach, and he will embrace that. He expressed the opinion that 2015 will be full of opportunities. He thanked his wife and family, and indicated that he looks forward to the upcoming challenges. XIV. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Council Member Peotter requested information on substituting the Finance Committee with a citizens' Finance Commission, bringing back the fire ring issue pertaining to burning wood, and also requesting that the City Attorney bring back revisions to Council Policy A -19, Guidelines for Invocations, that reflect the state of current law at the January 13, 2015 meeting. Mayor Pro Tern Dixon requested a resolution to recognize State Senator Mimi Walters for her service and that the City conduct a project completion audit and "lessons learned" analysis of the Civic Center for the January 13, 2015 meeting. Council Member Muldoon requested staff provide Council with options to repeal and replace the dock tax and mooring fees, and a proposed scope of an audit for the Tidelands Fund. Council Member Duffield requested a Tidelands audit of all income and expenses. Council Member Curry reported on the Sunset Ridge Park Dedication and encouraged residents to visit the park. Volume 62 - Page 139 City of Newport Beach Regular Meeting December 9, 2014 Mayor Selich announced that the City Clerk's Office will be accepting new, unwrapped toys, DVDs, and gift cards for families of U.S. troops through Operation Christmas. He encouraged resident participation. XV. MOTION FOR RECONSIDERATION - None MUL ADJOURNMENT - Adjourned at 5:15 p.m. in memory of Barbara Brinkerhoff The agenda for the Regular Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on December 4, 2014, at 4:00 p.m. City Clerk Recording Secretary Mayor Volume 62 - Page 140