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HomeMy WebLinkAbout11/24/2015 - Regular Meeting CITY OF NEWPORT BEACH City Council Minutes Regular Meeting November 24, 2015 I. ROLL CALL- 6:00 p.nL Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich City Clerh Brown announced that Council Member Peotter is participating from a teleconference location pursuant to Government Code §'54953(b) - 9809 SW Quail Post Road, Portland, Oregon. II. PUBLIC COMMENTS Jim Mosher commented on Closed Session Item D and on a section of the City Charter that requires that when a freeway is constructed in the City, it has to have the approval of the public. He commented on the subject property and questioned how the freeway project moved ahead without public participation. 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- 6:05 p.m. A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs,Assistant City Manager, Terri Cassidy, Deputy City Manager, Barbara Salvini, Human Resources Director, and Jonathan Holtzman; Negotiators. Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Lifeguard Management Association (NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Employee Association (NBPTEA); and Part-Time Employee Association of Newport Beach (PTEANB). B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957 (b)(1)) Title: Dave Kiff, City Manager Aaron C. Harp, City Attorney Leilani Brown, City Clerk Volume 62-Page 501 City of Newport Beach Regular Meeting November 24, 2015 C. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6) Agency Designated Representative: Council Member Tony Petros Unrepresented Employees: Dave Kiff, City Manager, Aaron C. Harp, City Attorney, and Leilani Brown, City Clerk. D. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: Parcel C (APN 442-071-23) generally located at 3300 Jamboree Road, Newport Beach, California Agency Negotiator: Dave Kiff, City Manager Negotiating Party: Fletcher Jones Motor Cars Under Negotiation: Price and terms of payment for the sale of real property IV. RECESS V. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VI. ROLL CALL Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich City Clerk Brown announced that Council Member Peotter is participating from a teleconference location pursuant to Government Code §54953(b) - 9809 SW Quail Post Road, Portland, Oregon. VII. CLOSED SESSION REPORT- None VIII. PLEDGE OF ALLEGIANCE- Council Member Muldoon IX. INVOCATION- Council Member Curry Mayor Selich announced that Item No. 27 will be heard immediately after Item No. 23, without objection. X. NOTICE TO THE PUBLIC XI. CITY COUNCIL ANNOUNCEMENTS (NON-DISCUSSION ITEMS) Council Member Curry announced that the Orange County Business Council presented the Leadership Award for Public Service to Mayor Selich, at the annual Turning Red Tape into Red Carpet Awards. Council Member Petros reported on an informal meeting on November 16, 2015 in Dover Shores, to discuss issues related to John Wayne Airport (JWA) takeoffs. He added that as Chair of the Aviation Committee, he is following the matter, listening to the public and engaging the County and the FAA. Additionally, on November 17, 2015, he and the City Attorney participated in a conference call with the City of Phoenix and their legal counsel, to discuss their lawsuit with the FAA and the circumstances around that. He noted that there are many differences in Volume 62 -Page 502 City of Newport Beach Regular Meeting November 24, 2015 circumstances, but also a great deal of similarity between the two cities and will be looking forward to a collaborative role that will enhance the City's position with the FAA in future discussions. Mayor Selich reported attending the Marine Ball on November 10, 2015. On November 12, 2015, he attended a meeting with Balboa Island residents to discuss the dredging of the Grand Canal and the status of the Park Avenue Bridge. Additionally, he reported attending the Citizen of the Year banquet for Paul Watkins and welcomed the Black Meeting Planners Coalition which was held in the City to study the possibility of hosting future conventions in Newport Beach. He added that he participated in the recent ceremonial lighting at the Dunes Resort. Mayor Selich announced that the City Clerk's office is accepting new and unwrapped toys for the Children of our Troops through Operation Christmas. XII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA-None XVIII. PUBLIC HEARING (Pursuant to City Council Policy A-6, Item 20 is being taken out of order) 20. Proposed Assessment District No. 117 - Area Bounded by Bayside Drive, Avocado Avenue, Coast Hwy & Carnation Avenue [891100-20151 Council Member Muldoon recused himself from this Item due to a financial interest because he works with a company involved in telecommunications. Council Member Curry recused himself from this Item due to a stockholder conflict with AT&T. City Attorney Harp clarified that Council Member Muldoon had to recuse himself due to a financial conflict. Assistant City Engineer Sinacori and Public Works Director Webb provided a brief report and addressed the counting of ballots, the tabulation process and announcement of the results. Assistant City Engineer Sinacori addressed next steps and the proposed schedule. City Clerk Leilani Brown announced that those counting ballots have been deputized to do so. Mayor Selich opened the public hearing. Neal Ellis, 621 Begonia, spoke against the assessment district adding that the telephone poles should not be removed at the expense of property owners. He commented on irregularities in the petition and opined the entire petition is suspect. Jim Mosher, 2210 Private Road, addressed Council's original direction to staff regarding this matter and requested clarification regarding the petition result when City parcels are not voted for and not included in land acreage. He commented on the amount of money at risk, and inquired on money spent to date, and questioned the process if the vote results in over 50%. Malcolm Geffen, 412 Avocado, spoke against the assessment district and alleged that his name was forged on the original signature, in favor of same. He expressed concerns with proceeding in small sections, with the invalid ballot and with related costs. He suggested that Council should look at the whole City rather than singling out one small portion. Lila Crespin spoke against the assessment district noting that it was improperly thought out and is unfair to residents. Volume 62 -Page 503 City of Newport Beach Regular Meeting November 24, 2015 Patti Gorczyca, 605 Begonia, spoke in support of the assessment district and thanked specific property owners who were part of a working group as well as City Council and staff. Elizabeth Young, 2228 Pacific Drive, spoke in support of the assessment district and listed her reasons for same. She encouraged the Finance Committee to consider a deferred assessment program in order to lighten the burden on residents. Dennis Baker, 706 Begonia, spoke in support of the assessment district and reported that his assessment is $27,000. Mark Simon, 2420 First Avenue, spoke in support of the assessment district. Harold Meany, 601 Carnation, spoke in support of the assessment district and commented on the many improvements made by the City during the last few years. He commented on long- term financing to minimize the burden on residents and questioned the costs and length of time to complete the project. Hearing no further testimony, Mayor Selich closed the public hearing. He announced that the ballots will be counted at this time and the results will be announced once the tabulations have been completed. Public Works Director Webb commented on the money and time spent on the process and Assistant City Engineer Sinacori addressed the utilities involved. The meeting continued as per the agenda (ITEMXIII) at this juncture. City Clerk Brown announced that, based on the tabulations for the ballots received, 52.20% of the ballots were submitted in favor of the Assessment District for a total assessment of $1,741,039.28. 47.80% of the votes were submitted in opposition, for a total assessment of $1,594,380.56. Motion by Council Member Peotter, seconded by Council Member Duffield, to adopt Resolution No. 2015-102, A Resolution of the City Council of the City of Newport Beach, California, Making Determinations, Confirming Assessments and Proceedings and Designating the Superintendent of Streets to Collect and Receive Assessments and to Establish a Special Fund for City of Newport Beach Assessment District No. 117, overruling protests, approving final engineer's report, levying assessments without modification, approving and ordering the work and improvements for the utility underground project, and authorizing and directing related actions with respect to Assessment District No. 117 since the results were greater than or equal to 50% of the weighted "Yes" votes versus "No"votes. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Duffield, Mayor Pro Tem Dixon, Mayor Selich Recuse: Council Member Curry, Council Member Muldoon The meeting was directed to the regular agenda, Item No. 24, at this juncture. XIII. PUBLIC COMMENTS ON CONSENT CALENDAR Dennis Baker spoke regarding Item No. 16 (Contract for Veterinary Services) and complimented Council and staff for addressing the issue. Volume 62 -Page 504 City of Newport Beach Regular Meeting November 24, 2015 Elizabeth Conway spoke regarding Item No. 4 (Second Reading and Adoption of Ordinance No. 2015-33 Imposing An Express Ban on Marijuana Cultivation, Marijuana Processing, Marijuana Delivery, and Marijuana Dispensaries in the City) and asked Council to delay consideration and approval of the subject ordinance to remove the ban on delivery. She added that wholesale ban on all cannabis activity allows the entry for illegal players and deprives the City of the tax revenue it could use to fund needed public education and safety efforts. She added that medical cannabis delivery has been occurring statewide and encouraged the City to not ban delivery. Jim Mosher commented on Item No. 3 (Water Efficient Landscape Ordinance Amendment) and referenced a model ordinance being proposed by the Metropolitan Water District of Orange County. He stated that the ordinance proposed at this time is not the final draft that had been prepared and encouraged adoption of the "correct" one. Frank Marino, Chairman/CEO of MJIC, spoke regarding Item No. 4. He requested that Council postpone the express ban on cannabis deliveries to medical marijuana patients in the City. He noted there are many patients in the City and many are unable to travel to gain safe access to their medicine. He noted there are many statistics showing the efficacy of marijuana to many illnesses and diseases, and offered additional information to Council. XIV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the November 10, 2015 Study Session and Regular Meeting[100-2015] 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. ORDINANCE FOR INTRODUCTION 3. Water Efficient Landscape Ordinance Amendment (NBMC Chapter 14.17) [100-2015] a) Find that the adoption of Code Amendment No. CA2015-001 is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15307, Class 7 (Actions by Regulatory Agencies for the Protection of Natural Resources); and b) Introduce Ordinance No. 2015-34, An Ordinance of the City Council of the City of Newport Beach, California, Amending Chapter 14.17 of Title 14 of the Newport Beach Municipal Code in its Entirety Pertaining to Regulations Required for Water Efficient Landscaping (PA2015-169), and pass to second reading on December 8, 2015. ORDINANCE FOR ADOPTION 4. Second Reading and Adoption of Ordinance No. 2015-33 Imposing An Express Ban on Marijuana Cultivation, Marijuana Processing, Marijuana Delivery, and Marijuana Dispensaries in the City[100-2015] Conduct second reading and adopt Ordinance No. 2015-33,An Ordinance of the City Council of the City of Newport Beach, California, Imposing an Express Ban on Marijuana Cultivation, Marijuana.Processing,Marijuana Delivery, and Marijuana Dispensaries in the City. Volume 62 -Page 505 City of Newport Beach Regular Meeting November 24, 2015 RESOLUTIONS FOR ADOPTION 5. Resolution of the City Council of the City of Newport Beach Regarding Disability Retirement and Reinstatement Determinations and Appeals for Local Safety Members Under the Public Employees Retirement Law; Delegating Authority for Local Public Safety Member Disability Retirement and Reinstatement Determinations and Rescinding Resolution No. 2008-89[100-20151 Adopt Resolution No. 2015-100, A Resolution of the City Council of City of Newport Beach, California,Regarding Disability Retirement and Reinstatement Determinations and Appeals for Local Safety Members Under the Public Employees Retirement Law; Delegating Authority for Local Public Safety Member Disability Retirement and Reinstatement Determinations and Rescinding Resolution No. 2008-89. 6. Approval of Measure M2 Expenditure Report[100-20151 Adopt Resolution No. 2015-101, A Resolution of the City Council of the City of Newport Beach, California, Concerning the Measure M2 Expenditure Report for the City of Newport Beach for the Fiscal Year Ending June 30, 2015, substantially to form, subject to technical revisions in conformance with OCTA guidelines. CONTRACTS AND AGREEMENTS 7. Big Canyon Restoration Wetlands Project - Approval of Amendment No. 1 to the Professional Services Agreement with Burns & McDonnell (Project 15X12; C-6023A) [381100-20151 Approve Amendment No. 1 to the Professional Services Agreement (C-6023A) with Burns & McDonnell of Brea, California, to make design modifications specified in the scope of work for the Big Canyon Restoration Wetlands project at a not-to-exceed fee of $135,720.00 and authorize the Mayor and City Clerk to execute the Agreement. 8. Orange County Sanitation District (OCSD) Mariners Mile Wastewater Force Main City Inspection Support Services Amendment with Anderson Penna (C-6107) 1381100- 20151 a) Approve Amendment No. 2 with Anderson Penna for an additional $75,800 in inspection support services and authorize the Mayor and City Clerk to sign the agreement on a form approved by the City Attorney; b) Approve Budget Amendment No. 1.6BA-018, increasing revenue estimates in the Contributions fund by $119,350 in account 13501-431075 and increasing expenditure appropriations by $119,350 in the Contributions Fund in account 13501-980000-16S10; and c) Approve Budget Amendment No. 16BA-018, increasing revenue estimates in the Water Capital Fund by $55,297.66 in account 70203-511040 and increasing expenditure appropriations by $55,297.66 in the Water Capital Fund in account 70201-980000-15W02. Council Member Duffield recused from this Item since his residence is within 500 feet of the subject property. Council Member Curry recused from this Item since he is a Director of the Orange County Sanitation District. 9. Storm Drain Evaluation - Approval of Professional Services Agreement with Downstream Services,Inc. - Contract No. 6277 [381100-20151 Approve Professional Services Agreement, Contract No. 6277, with Downstream Services, Inc. of Escondido, California, to provide storm drain evaluation services at a not-to-exceed price of $200,000.00, and authorize the Mayor and City Clerk to execute the Agreement.. Volume 62 -Page 506 City of Newport Beach Regular Meeting November 24, 2015 10. Request to Relocate a Driveway and Install Private Improvements within the Public Right-of-Way at 2723 Ocean Boulevard (N2015-0365) (C-6371)[381100-20151 a) Waive City Council Policy L-2, Driveway Approaches, to allow the relocation of an existing driveway on Ocean Boulevard; b) Waive City Council Policy L-6, Private Encroachments in the Public Rights-of-Way, to allow retaining walls and guard rails that exceed 36 inches in height, private landscaping, private irrigation, drainage improvements and appurtenances that encroach in excess of 1- foot into the Ocean Boulevard right-of-way, contingent upon all conditions of the Encroachment Permit process being met; and c) 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. 11. Eastbluff Park Field Improvements-Award Contract No. 6268 1381100-20151 a) Approve the project plans and specifications; b) Award Contract No. 6268 to Calpromax Engineering, Inc. (Calpromax), for the total bid price of $138,800.00, and authorize the Mayor and the City Clerk to execute the contract; and c) Establish a contingency of $21,200.00, approximately 15 percent, to cover the cost of unforeseen work. 12. Orange County Transportation Authority Cooperative Agreement No. C-5-3525 for MacArthur Boulevard Rehabilitation from East Coast Highway to Bonita Canyon Drive (C-6372)[381100-2015] Approve Cooperative Agreement No. C-5.3525 with OCTA for APM grant funds for the MacArthur Boulevard Rehabilitation project, and authorize the Mayor and City Clerk to execute the agreement. 13.Annual Concrete Replacement Program-Award of Contract No. 6304 [381100-20151 a) Approve the project drawings and specifications; b) Award Contract No. 6304 to Unique Performance Construction, Inc. for the Total Bid Price of$483,425.00, and authorize the Mayor and the City Clerk to execute the contract; c) Establish an amount of$49,000 (10%) to cover the cost of unforeseen work not included in the original contract; and d) Approve Budget Amendment No. 16BA-015, transferring$50,000.00 in project savings from Account No. 01001927-980000.151104(2014-2015 Citywide Slurry Seal Program) to Account No. 01001927-980000-16EII (Concrete Pavement Replacement). 14. Amendment of Professional Service Agreement with T&B Planning for Environmental Services for the Proposed 150 Newport Center Project Located at 150 Newport Center Drive (PA2014-213) (C-6103)1381100-20151 Approve the amendment to the Professional Services Agreement, and authorize the Mayor and City Clerk to execute the agreement. 15.Animal Sheltering Services (C-6373)[381100-2015] Authorize the Mayor to sign a contract with Home Free Animal Sanctuary, 20302 Riverside Drive, Newport Beach, CA 92660 for $60,000 per year. 16. Contract for Veterinary Services (C-6374)[381100-20151 Authorize the Mayor to sign the Professional Services Agreement with Mariner's Mile Pet Clinic for Veterinary Services at the City's contract Animal Shelter. Volume 62 -Page 507 City of Newport Beach Regular Meeting November 24, 2015 MISCELLANEOUS 17. Planning Commission Agenda for the November 19, 2015 Meeting [100-2015] Receive and file. 18. Confirmation of Appointments to the Newport Beach Restaurant Association Business Improvement District Advisory Board of Directors [100-20151 Appoint Alexandra Robinson representing Back Bay Bistro, and Christopher Roman, representing Cucina Enoteca, to fill the unexpired balance of Cindy O'Shea and Alexandra Robinson's terms on the Newport Beach Restaurant Association Business Improvement District Advisory Board of Directors which expire on June 30, 2016. 19. Acceptance of the 2014 Emergency Management Performance Grant from the Federal Emergency Management Agency (FEMA) (C-8075-1) [38/100-20151 a) Accept the grant funding in the amount of $10,712 used in support of the City's emergency management program; and b) Approve Budget Amendment No. 16BA-017 to accept grant funds from the Federal Emergency Management Agency (FEMA) through the County of Orange, increase revenue estimates by $10,712 in account 01040403-431250, and increase expenditures appropriations by $10,712 in account 01040403-821005. Motion by Mayor Pro Tem Dixon, seconded by Council Member Duffield, to approve the Consent Calendar, noting recusals by Council Members Curry and Duffield on Item No. 8. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich XV. ITEMS REMOVED FROM THE CONSENT CALENDAR - None XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS Dennis Baker requested that Council consider televising Planning Commission meetings and making them available on the City's website. George Schroeder agreed with the previous speaker and asked that Council consider televising Planning Commission meetings for increased transparency. Arym Diamond, 202 Canal, commented on speed limits and signage on Pacific Coast Highway and expressed concerns regarding the high amount of traffic coming from Huntington Beach. Mayor Selich suggested he speak with Public Works Director Webb. XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None XVIII. PUBLIC HEARINGS 21. Former City Hall Complex Land Use and Zoning Amendments for the Lido House Hotel Located at 3300 Newport Boulevard and 475 32nd Street, and Authorization of Fostering Interest in Nature Program [100-20151 Senior Planner Campbell provided a PowerPoint presentation. He addressed background including approval of the Lido House Hotel and other actions regarding the site, and modified Volume 62 - Page 508 City of Newport Beach Regular Meeting November 24, 2015 amendments. He addressed a cooperative effort between the City and the Newport Dunes for an educational, camp-like experience for low-income students. He reported that the Coastal Commission endorsed the program and addressed actions for Council to take at this time as well as next steps. Mayor Selich opened the public hearing. Jim Mosher commented on inconsistencies between the General Plan and the Coastal Land- Use Plan in terms of allowing unlimited municipal facilities. He commented on the hotel being a revenue source for the City and expressed concerns that taxpayers are being asked to subsidize the hotel project. Arym Diamond, 202 Canal, noted that one of the concerns of the Coastal Commission was whether the program would be in perpetuity. He opined that it is a terrible project, especially, in terms of traffic and noted that the height of the building is above what the City has already set, as a limit. Hearing no further testimony, Mayor Selich closed the public hearing. Motion by Mayor Pro Tem Dixon. seconded by Council Member Curry, to a) find that all significant environmental concerns for the proposed project have been addressed in the previously certified Lido House Hotel Final Environmental Impact Report (SCH#2013111022), and that the changes reflective of the Coastal Commission's certification of LCP-5-NPB-14- 0831-3 are not substantial, as they do not involve new significant effects or a substantial increase in the severity of previously identified significant effects, and therefore, a subsequent environmental analysis does not need to be prepared; b) find the FUN program is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; c) adopt Resolution No. 2015-104, A Resolution of the City Council of the City of Newport Beach, California, Accepting the Suggested Modifications from the California Coastal Commission (LCP-5-NPB-14-0831-3)and Approving Revised General Plan Amendment No. GP2012-002 and Revised Coastal Land Use Plan Amendment No. LC2012-001 for the Former City Hall Complex Located at 3300 Newport Boulevard and 475 32nd Street (PA2012-031); d) introduce Ordinance No. 2015-35, An Ordinance of the City Council of the City of Newport Beach, California, Approving Zoning Code Amendment No. CA2012-003 for the Former City Hall Complex Located at 3300 Newport Boulevard and 475 32nd Street (PA2012-031), and pass to second reading on December 8, 2015; e) direct staff to take the necessary steps to develop and implement a new recreation program called "Fostering Interest In Nature (FiiN)" and develop a Memorandum of Understanding with the California Coastal Commission to operate the program in accordance with Coastal Development Permit No. 5-14-1785 (CDP) for the Lido House Hotel; and f) approve Budget Amendment No. 16BA-012 in the amount of $1,415,232 establishing a new restricted reserve fund for the FiiN Program. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 22. Annual Reporting on Development Impact Fees & Development Agreements [100- 20151 Mayor Selich opened the public hearing. Hearing no testimony, Mayor Selich closed the public hearing. Volume 62 -Page 509 City of Newport Beach Regular Meeting November 24, 2015 Motion by Council Member Curry, seconded by Council Member Petros, to receive and file the Annual Reports on Development Impact Fees, and Development Agreements. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich XIX. CURRENT BUSINESS 23. Project Concept Approval for the Replacement of the Corona del Mar Fire Station No. 5 and Branch Library[38/100-20151 Deputy Public Works Director Vukojevic provided a PowerPoint presentation addressing location, existing conditions, community outreach, proposed conceptual layout, building and site features, community support of architecture, estimated costs, next steps and recommendations. Brief discussion followed regarding budget options. Joy Brenner reported attending numerous meetings and stated she sees this project as a model of citizens, staff and government working together for the betterment of the community. She commented on differences of opinion but everyone was able to reach a satisfactory conclusion. Jim Mosher commented on the architect and referenced an announcement from the City of Costa Mesa regarding a fire station of a similar design, where residents were asked to weigh in on the design. He questioned why Newport Beach residents were not asked to comment on the design, and commented on the need for a temporary fire station during construction. Elizabeth Stahr commented on the use and importance of the Corona del Mar Library and spoke in support of the project. She thanked Council for continuing the service. Marilou Hergel Foster spoke in support of the Corona del Mar Library and commented on the outreach process and the cooperation between the City, residents and staff. Wendy Salter spoke in support of the project and commended the City for the process. She asked that Council approve the budget so that the project can move forward. Council Member Peotter commented on the possibility of doing value engineering and adding the project to the 2016/2017 budget, rather than the current year. Motion by Council Member Peotter, seconded by Council Member Cures, to a) approve floor plan option D-4, and rendering Option 3 as the preferred floor plan layout and exterior architectural style Concept for the Corona del Mar Fire Station No. 5 and Branch Library replacement; and b) establish a total project budget goal at a not-to-exceed cost of$8,000,000. Council Member Curry commended Council Member Peotter for attending community meetings and supporting this project. He commented positively on the cooperative process and commended the community for its input. Mayor Pro Tem Dixon agreed with Council Member Curry's comments and noted the cooperative spirit between the City and the community. She commented positively on the potential public/private partnership going forward and stated she looks forward to hearing more about that. Volume 62 -Page 510 City of Newport Beach Regular Meeting November 24, 2015 Council Member Muldoon spoke in support of the project and hoped that the City will continue to pay down the debt. Mayor Selich stated he supports taking the value engineering approach to this project. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 27. Professional Services Agreement - Civic Center Audit (C-6376) [381100-2015] (Pursuant to City Council Policy A-6,Item 27 was taken out of order) City Attorney Harp provided a brief background and addressed Council's previous direction for the City Attorney's office to select a project manager and audit firm. He addressed the selection process and deferred to the Project Manager for a report. Allyson Gipson, Harris & Associates, Project Manager, provided a PowerPoint presentation with a brief overview of the process for selecting the auditing firm and addressed the goals of the audit, the procurement process, the evaluation process, an overview of proposing firms, shortlisted firms, the interview evaluation process and selection and negotiations. Council Member Petros commented on possible contradictions and asked regarding Phase I and Phase 2 as well as the chosen firm. He suggested that, if Council moves forward with the project, that the compensation for the consultant be on a fixed fee basis not a not-to-exceed basis. Project Manager Gipson stated a fixed fee would be a great opportunity for the consultant, but not for the City. She addressed the valuation of the half of a percent and noted speaking with industry representatives as well as the short-listed firms about their evaluation of Phases I and 2. All of them were within the same cost ratios. In terms of the ability to be flexible, the "not-to-exceed" allows for more flexibility and Project Manager Gipson noted that part of her role is to monitor what the firm is doing and to keep costs as tight as possible. In response to Mayor Pro Tem Dixon's question, Project Manager Gipson addressed standard industry practices with respect to the process and the timing for this type of audit. She added that a component of the process will be "lessons learned" and commented on the concept and various components of the subject project. In response to Council Member Muldoon's question, Project Manager Gipson listed her qualifications and experience and confirmed that she has no perceived or actual conflicts and has no relationship with the contractors in question or staff members. Additionally, she addressed the reason for performing in phases. Council Member Muldoon stated he would like to set a reasonable reporting period that would also allow for an objective, transparent audit without having to deal with budget pressures. In response to Council Member Curry's question, Project Manager Gipson stated that she reviewed a report issued by the City Manager, in January and commented on her thought processes in reviewing that report. Council Member Curry commended Ms. Gipson for reviewing the report and encouraged the public to read the staff report for this item. He added that for what the City will pay for this Volume 62 -Page 511 City of Newport Beach Regular Meeting November 24, 2015 project, it could pay for half the cost of the Library expansion; which would be money, infinitely better spent. He provided a history of the matter and addressed actions that were taken to drive a politically-motivated audit that serves no purpose, and suggested using the money to benefit the taxpayers. In response to Mayor Pro Tem Dixon's request, Project Manager Gipson addressed the commonality of an audit such as the subject audit. She reported that it depends on the agency, and third-party audits are usually done at the end of a program or project. She added that sometimes, the cost of the audit is included in the cost of the overall project and usually, audits are done on complex projects or if problems arise in the midst of a project. Mayor Pro Tem Dixon stated she wishes the prior Council had dealt with this matter but noted that the amount of the Civic Center project is a sizable amount, using taxpayer money for a very complex project, and it is incumbent upon the City to be accountable to the taxpayers. She addressed the importance of lessons learned to provide a roadmap for future projects. She added that it is the City's responsibility to respond to residents in terms of how this project was managed and hoped that the politics could be removed from this issue. She noted that Council has a fiduciary responsibility and that it is owed to the taxpayers. Council Member Curry noted that information regarding the cost of the project is available in the vast documentation that was provided by the City Manager in January. He stated there has been a strange reluctance to read the documentation by those who profess curiosity about what happened. He indicated that this is about a political manipulation to create an issue and stated this is a $600,000 red-light warning that the City is being asked to waste. Council Member Duffield noted that over 60% of voters elected him over the incumbent Mayor because residents were not happy with how this project was handled. He stated there is a concern to put this issue to bed so that in the future, similar problems can be avoided. He added that this is what the majority of voters want. Arym Diamond, 202 Canal, opined that the City has been poisoned from this project and stated that what Council Member Curry is missing is that people are upset because there was an overrun. He stated that this project will affect every other project that will be taken up by the City and that this matter should be taken very seriously. George Lesley, 500 Canal, expressed skepticism about the proposed $600,000 expenditure. He stated that Council has a fiduciary duty to explain to residents, the costibenefit of spending an additional $600,000 of taxpayer money. He added that there were no specific objects stated that would lead to findings that would provide residents with money value, believes this project was extremely unique and very complex, and opined that it is unlikely that the City will ever have a project of this complexity. He suggested hiring a consultant for a future project in order to learn those lessons, rather than going back and spending $600,000 of taxpayer money to find out that $140,000,000 was spent. He referenced an article in the Orange County Register that recapped the Civic Center project and suggested going back and reading the article. Jim Mosher commented on the original motion authorizing an audit review and the purpose for same. He reported that the contract issued for the management part is more than half the amount allotted for the actual audit and therefore, did not think the City has learned much. Council Member Muldoon commented on Mr. Lesley's understanding of the importance of an audit, after the fact, and on the possibility of potential damages for fraud or collusion. He commented on massive change orders, private events and undisclosed gifts and stated that for Council to "not look" is corruption. He noted that peace of mind and trust are two of the numerous benefits to moving ahead with this project. Volume 62 -Page 512 City of Newport Beach Regular Meeting November 24, 2015 Motion by Council Member Muldoon, seconded by Mayor Pro Tem Dixon a) authorize the Mayor and City Clerk to execute the Professional Services Agreement with RW Block Consulting, Inc. with the following revisions: i) the not to exceed amount shall be $300,000; and ii) the Professional Services Agreement shall have a revised scope of work that provides for one phase with periodic reporting to the City Council; and b) approve amended Budget Amendment No. 16BA-016, to increase expenditure appropriations by $352,920 from the General Fund unappropriated fund balance to the City Council's budget for professional and technical services, 01005005.811008. Council Member Petros commented on the new allegations of gifts and "back-slapping" when the topic is supposed to be about an audit. He commented on the start of the process and it's repeated "morphing" and noted that none of the "Team Newport" people were here throughout it. He stated this project has a long history with over forty meetings and changing in scope. He added that the bridge was a regulatory requirement resulting from the EIR. He indicated that this is motivated by political opportunism and suggested that is the lesson that needs to be learned, first. Mayor Selich stated he will not support the motion and opined the subject project is a huge waste of money. City Attorney Harp confirmed the motion to include a contract not to exceed $300,000 and a budget amendment for $352,920. Council Member Curry noted this is how budgets increase. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon Nays: Council Member Petros, Council Member Curry, Mayor Selich Council Member Muldoon recused himself from the continued Item No. 20 due to a financial interest. Council Member Curry recused himself from the continued Item No. 20 Item due to a stochholder conflict with AT&T. The announcement of the vote regarding Item No. 20 (Proposed Assessment District No. 117) was made at this juncture. Council Member Peotter was excused from the meeting at 9.23 p.m. 24. Cooperative Agreement with the County for Mooring Management Services in Newport Harbor (C-4569)[381100-2015] Public Works Director Webb presented this item noting the RFP process and a thorough review of the proposed services. He provided recommendations and offered to respond to questions from Council. Motion by Council Member, seconded by Council Member Petros, to approve and authorize the Mayor and City Clerk to execute the Cooperative Agreement with the County of Orange for Mooring Management in Newport Harbor for five (5)years. Volume 62-Page 513 City of Newport Beach Regular Meeting November 24, 2015 Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon,Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Peotter (excused) 25. Award of Affordable Housing Fund[100-20151 Community Development Director Brandt introduced the item noting that the money has been collected in lieu of providing affordable housing, over the last few years. She reported there is approximately $4.2 million in the fund that is available for disbursements through a variety of programs eligible for same. She deferred to staff for a report. Senior Planner Murillo provided details of a PowerPoint presentation addressed the three projects for which staff is recommending allocation of the Affordable Housing Fund. He provided background and addressed the Request for Proposals, proposal evaluation, and presented a detailed overview of each of the three recommended projects. In reply to Council Member Petros' question, Senior Planner Murillo confirmed this is a grant of money which is associated with specific terms. Specifically to one of the sites, he added there is no possibility of building a sober-living home on the site. Additionally, according to the terms of the agreement, every resident would go through background checks and he addressed Police calls for service that have occurred at existing sites. Community Development Director Brandt reported that staff believes there will be an improvement for calls for service as with the proposed agreement this would be a more- managed living environment. In further response to Council Member Petros' questions, Public Works Director Webb addressed and listed improvements specific to West Newport that are currently in progress and/or pending in the area. Community Development Director Brandt added that the City has recently entered into an agreement with a landscaping design firm to help develop a streetscape improvement plan for the West Newport Mesa area. Additionally, she addressed Echo Beach, a private construction project, currently underway. Eric Payne, Community Development Partners and Larry G. Haynes, Jr. with Mercy House, provided a PowerPoint presentation addressing background, project objectives and goals, providing housing for seniors and veterans, renovation of existing structures and existing/likely versus proposed changes and services. Mr. Haynes added information regarding Mercy House addressing quantity and quality of care and noting no negative impacts on the community. Celeste Jardine-Haug, OASIS Senior Center and Chris Baiocchi, Habitat OC, addressed the partnership and specific roles of each organization including identifying seniors in need and focusing on safety and accessibility, not cosmetic repairs. Charles Gross, President of the Board of Directors of Seaview Lutheran Plaza, Inc., provided information regarding his organization including its purpose of providing affordable housing to seniors. He reported that the units are in need of attention in terms of increased personal safety and accessibility. He addressed their professional management team and offered to respond to questions from Council. Nancy Spring reported providing management services to Seaview Lutheran Plaza, Inc., throughout its history. She introduced Martin Lakatos, their in-house architect, and indicated Volume 62 -Page 514 City of Newport Beach Regular Meeting November 24, 2015 looking forward to working closely with the City to make the necessary improvements in terms of complying with ADA requirements and accessibility. Carol DeFreitas alleged that the City is not authorized to enter into the subject agreements and referenced Government Code Sections 65583 and 65583.2, which require the City to keep an inventory, by parcel number, that can be used for affordable housing. She referenced an exception, the Adequate Sales Alternative, and reported that the exception only applies in limited circumstances, none of which the City complies with. She addressed the City's requirements in terms of the number of very-low and low-income housing units and a determined cap. She referenced the City's Housing Element in terms of acknowledging its need to create 700 new units and that is has created none. Carol McDonald questioned grouping seniors and veterans but spoke in support of the project. Elise Richards reported that one of the sites is close to a playground and expressed concerns regarding safety. She believed that the project changes the character of the community and lowers property values. She asked that Council take its time to work with the residents of Newport Shores regarding this matter. Bobby McDonald, Chair of the Orange County Veterans Advisory Council, spoke in support of the housing project in Newport Shores. He urged Council to support veterans by voting in favor of this matter. Brent Duque, 254 62nd Street, spoke in opposition to the proposed project in Newport Shores and listed his concerns. He commented on other homeless/low-income projects in the City and alleged lack of Police control and crime-prevention efforts. He opined that Newport Shores has become a "dumping ground" for Newport Beach and that the proposed project is a waste of City funds as it will only help twelve people and will not make a difference. He alleged other violations of Government Codes and asked Council to carefully consider the consequences. Gina Luzzi, spoke in support of the proposed project noting that it will look better than it currently does and that it will have an on-site manager to monitor compliance with City ordinances. She opined that the complex should be for all seniors rather than seniors and veterans. David Tanner, 223 62nd Street, questioned why the decision is being made today and opined the City should wait until after the Housing Element update. He questioned why the recommendations were made without the benefit of public input and asked that Council continue the matter directing staff and the taskforce to consider public input and site constraints received in responses to the RFP. He alleged that the City is getting into the affordable housing business, questioned the City awarding large amounts of funds to small rather than larger projects, and complained that he has not been given the adequate opportunity to voice his concerns. Nate Iott, 320 Prospect Street, noted his familiarity with housing needs and related challenges. He referenced the City's General Plan in terms of its goals and expressed concerns regarding public safety, and persons with mental illness and substance abuse. He noted there are no requirements to demonstrate that residents of the facility will be "clean and sober" and that there will be no on-site, qualified mental health professional. He addressed lack of necessary amenities and felt this project is a wasted opportunity to revitalize West Newport and other areas in the City. Arym Diamond, 202 Canal, opined that the City is attempting to "ram this project down the throats" of its residents and asked that the matter be delayed. He alleged lack of public input Volume 62 - Page 515 City of Newport Beach Regular Meeting November 24, 2015 and expressed concerns with investing money in a twelve-unit parcel rather than on sites with higher densities. Brian Burlingame, Veterans Coordinator, Vanguard University, Costa Mesa, spoke in support of the project and of the importance of helping veterans. He mentioned that having seniors and veterans together, provides a perfect opportunity for mentoring and urged Council to do the right thing for the City's seniors and veterans. Gary Reasoner, 259 62nd Street, expressed concerns with a lack of transparency in this process and the term of the agreement. He suggested allocating the money to a better location where more people will be assisted, for the same amount of money. Howard Rich, Newport Shores board member, commented on his experience in Vietnam and noted the many issues of returning veterans. He stated that it is a community duty to give them all the support they need and spoke in support of the proposed projects listing its many benefits. He spoke on behalf of the board noting that there was little community outreach and urged the City to correct that in the future. Tom Neville, 6001 Coast Boulevard, commented on residents of the building and on the beneficiaries of the project. He spoke in opposition to the project and expressed concerns with the lack of public input. Jeremy McKeehen spoke of his experience as a veteran, and of the importance of the community helping them to grow and get to the next level in their development. Michael Daily, 238 62nd Street, commented on the lack of notice to residents of Newport Shores and asked that Council continue this matter for increased public input. Additionally, he opined that the proposed is not a good use of the Affordable Housing Funds and suggested the City put out another RFP and get additional qualified proposals. Teresa Iott, 320 Prospect, suggested the funds could be better used by helping additional people and expressed concerns regarding the term of the agreement. She spoke in opposition to the project and urged Council not to approve it. Chris Mergil spoke regarding his background and experience in the military and in support of the proposed project. He noted that he sees this as an opportunity to help twelve people who have placed their lives on hold, to help the greater good. While he understands resident concerns, he also considers the human factor and urged Council to approve the project. Daniel Page, Costa Mesa, spoke of his experience in the U.S. Navy and spoke in support of the proposed project. Johnny Rimlinger, 326 62nd Street, spoke in support of veterans but felt that the money could be better used by helping more people. Leslie Long, 419 Prospect, expressed concerns with the lack of public notice for this item. She urged Council to continue this matter for increased public input and clarity, commented on the term of the agreement, and believes there are too many"unknowns". Scott DeFreitas, 355 Walnut, suggested maximizing the available funds to help as many people as possible. He commented on the cost per unit and felt that costs are too high. Ryan Long, 419 Prospect, asked that Council continue the matter for increased public input and urged that the City maximize the funds to help more people. Volume 62 -Page 516 City of Newport Beach Regular Meeting November 24, 2015 Steve Foley, building owner, spoke in support of veterans and in support of the project. Brooke Horgan, 241 Walnut, commented on the high unit cost of the proposed project and expressed concerns with lower property values and suggested other areas in the City that would be more suitable for same. She spoke in opposition to the proposed project. David Tanner, 6001 Coast Hwy., spoke in opposition to the proposed project. He noted that the units are very small and opined there are better ways of spending City funds. Jill Hunt, 251 Prospect, asked that Council consider the concerns of the community and expressed concerns with the lack of noticing, public input on this matter and on the amount of money allocated to the project. She stated there are better ways to spend the funds and urged Council to listen to the community. Lindsey Watson, Huntington Beach, commented on her experience with residents of the units and spoke in support of veterans. She felt that the money could be better spent to help more veterans. Brian Amendt, Newport Channel Inn, reported receiving no notice for this matter and expressed concerns regarding impacts to his property and his guests. He urged Council to ensure that"good"people will reside at the site and not people who will bother his guests. Joe Trimble spoke in opposition to the proposed project adding that it creates no additional housing. He felt that the money could be better used to help more people and noted that the project provides no real benefit except for the developer. He suggested that the City reopen the RFP process and select a project that actually expands the City's affordable housing stock. Han Smith, 214 Orange Street, referenced the Civic Center audit and the amount of money it will cost the City. He commented on the money to be allocated for twelve affordable housing units and expressed confusion. Everette Phillips, 206 Walnut Street, commented on other projects in the City, on claims made by the developer regarding the need for Conditional Use Permits. He felt that Council should consider more information about the matter than is currently available. City Attorney Harp reported that there are no legal impediments to moving forward with the subject agreements. Community Development Director Brandt reported that staff has evaluated all 3 proposals for consistency with the General Plan's Housing Element and the related Code requirements and has found that the City is in full compliance. Council Member Muldoon noted that sex offenders are not currently precluded from living near a park. He expressed sympathy for those who will be displaced but noted that he is inclined to support staffs recommendations. Motion by Council Member Muldoon, seconded by Council Member Curry, to a) find the projects to be funded to be categorically exempt pursuant to Title 14 of the California Code of Regulations (Section 15301, Article 19 of Chapter 3, Guidelines for Implementation of the California Environmental Quality Act) under Class 1 (Existing Facilities); b) approve and authorize the Mayor and City Clerk to execute the agreement with Community Development Partners (C-6377) and approve Budget Amendment No. 16BA-013, transferring $1,975,000 from the Affordable Housing Reserve Account to fund the Newport Shores Project; c) approve Volume 62 -Page 517 City of Newport Beach Regular Meeting November 24, 2015 and authorize the Mayor and City Clerk to execute the agreement with Habitat OC Partners (C-6378) and approve Budget Amendment No 16BA-013, transferring up to a maximum $600,000 from the Affordable Housing Reserve Account to fund the Senior Home Repair Program; and d) authorize staff to negotiate an agreement with Seaview Lutheran Plaza (C-6379) for the remaining balance of approximately $1.6 million of the Affordable Housing Fund for the proposed renovations and accessibility improvements. Council Member Petros noted this is the granting of funds for the purpose of affordable housing. He reported there are approximately 300 affordable units that are slated for the airport area. The Banning Ranch project will also have an affordable element to it. The City is on a multi-front effort to provide a number of housing opportunities for people who would like to live in Newport Beach. He felt that the developers failed in terms of public outreach but stated that does not diminish the benefit of the proposed project. Council Member Curry expressed support for the item and noted the importance and responsibility of the City to do its part in ensuring that the housing needs of veterans are addressed. He felt that having veterans in the community will be a benefit. Mayor Selich noted his surprise and stated that supporting veterans is one of the most worthwhile things that a City can do. While he agreed there should have been better notice, Mayor Selich stated his support of the motion. Mayor Pro Tem Dixon agreed with Council colleagues and spoke in support of the project and the motion. Council Member Duffield spoke in support of the motion. The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Peotter (excused) Motion by Council Member Curry, seconded by Mayor Pro Tem Dixon,to continue with the agenda past 11:00 p.m. The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Peotter(excused) 26. Landscape Maintenance Agreement for Parks and Facilities (C-6375) [38/100-20151 Motion by Council Member Curry, seconded by Council Member Muldoon, to a) approve and authorize the Mayor and City Clerk to execute the Maintenance Agreement with Mariposa Landscapes, Inc. for Landscape Maintenance of City Parks and Facilities for an amount not to exceed $1,975,000 per year; and b) approve Budget Amendment No. 16BA-014, appropriating an additional $165,397 into the FY 15-16 Parks Division budget. Jim Mosher stated he was surprised to see there was no financial consequence to Pinnacle backing out of their contract. He suggested adding a clause in the current contract of possible consequences if the new contractor fails to deliver on same. Volume 62 -Page 518 City of Newport Beach Regular Meeting November 24, 2015 The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Peotter (excused) XX. MOTION FOR RECONSIDERATION-None XXI. ADJOURNMENT-Adjourned at 11:24 p.m. in memory of Dan Steele The agenda 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 19, 2015, at 4:00 p.m. and on November 24, 2015, at 12:00 p.m. at 9809 SW Quail Post Road, Portland, Oregon. ar Recording Secretary 5 i Mayor City Clerk �SrWPpRT >. cn F 'Y u s tg41ro RN`P Volume 62- Page 519