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HomeMy WebLinkAbout20 - Council Policy Manual Update• CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 20 April 13, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 949/644 -3002 or dkiff @city.newport- beach.ca.us SUBJECT: Council Policy Manual Update for 2004 and Public Meeting to Consider City's Statement of Investment Policy (Policy F -1) RECOMMENDATION: Approve the proposed revisions or additions to the Council Policy Manual: -- Revisions to B -1, B -2, B -3, B -5, B -7, B -8, B -14, B -16, F -1, F -2, F -3, F -4, F -11, F -13, • F -14, F -16, F -19, F -22, F -23, G -6, H -1, K -1, K -3 and; -- Addition of F -24 DISCUSSION: Background: This agenda item contains two parts: • Part I — The annual review of the City Council's Council Policy Manual (with recommended changes to or additions of 24 separate policies); and • Part II — The annual affirmation of the City's Statement of Investment Policy (Council Policy F -1) as required by California law. Part I -- Policy Manual Review. Council Policy D -3 directs the City Council to review the more than 100 policies in the Council Policy Manual annually. These policies exist to instruct the Council and City staff on how to process a variety of different issues -- from airport and annexations to voice mail and water service outside the City limits. This year, the 24 policies proposed for change or for addition are summarized in Attachment A. Many of the proposed changes are minor and are NOT all summarized below. Noteworthy changes include the following: E Council Policy Manual Update for 2004 April 13, 2004 Page 2 • Statement of Investment Policy (F -1) Regardless of changes, this policy needs to be re- certified by the City Council every year, and we accomplish that as part of this process. We also routinely ask our Investment Advisers to review the Policy each year and recommend changes. They almost always provide valuable input, usually due to a subtle change in law or regulation; or as a result of new or refined investment vehicles. The only proposed change this year involves the limiting parameters defining permitted Commercial Paper investments. The net substantive impact of the change will be minimal, but the wording needs to be revised to bring our Policy more in line with current rating standards and terminology. Reserves /Designation of Fund Balance (F -2) The recommended changes in this policy are in three areas. First, the nature of the link between Stabilization Reserves and the fluctuations in market value of investments is described in more detail. Second, a Designated Reserve is established within the Tide and Submerged Lands Fund to act as the repository for funds the City is setting aside to deal with the expense of abandoning oil wells when they are no longer economically productive. Based on the estimated life spans of the wells, a certain amount of money is budgeted into this Reserve each year to deal with this eventual expense. Third, certain Reserves (primarily Accounting Reserves) which had previously only been described within the General Fund have also been included in the Water and Wastewater Enterprise Funds. Budget Adoption and Administration (F -3) There are three recommended changes to this Policy as well. The first recommends language that will set forth City Policy concerning posting of transactions as abatements of revenues and expenditures. In short, this is an accounting practice that should be used on a v ery I imited a nd s elective b asis. T he s econd p roposal a dds a p aragraph describing policy for the financial administration and budgeting of Special Assessment Districts. Third, language is added that will extend the limit of authority of the City Manager to approve changes to Public Works projects under certain urgent situations. Among other things, the Policy revision calls for City Council notification and convening a special meeting if a Council Member so desires. Ackerman Trust (F -16) The changes proposed for this Policy are fairly substantial. Intermediate transactions have now been completed, and the City's procedures for administering the funds in the Trust have matured. The thrust of the modifications to the Policy is to establish annual fiscal procedures and expenditure limits which will insure the long -term viability of the Trust. The actual calculation is a bit complex, involving the five -year moving average of annual earnings, but, in short, the rules provide that annual spending for scholarships and library support will be limited to actual earnings less inflation. The inflationary portion of earnings will be added to the principal amount. This insures that funds in the Trust will increase so as to remain constant with the economy in relative magnitude. Council Policy Manual Update for 2004 April 13, 2004 Page 3 • Policy for Collections and Write -offs of Accounts Receivable F -24 This is a proposed new Policy. The Administrative Services Director establishes specific procedures for collections and the write off of accounts determined to be uncollectible (for accounting purposes). Actual practice in this area is also reviewed, to some degree, as part of the City's audit process. However, a City Policy establishing overall guidelines and parameters for this function is appropriate. General Plan (K -1) This amendment would alter the process for starting a General Plan Amendment to more closely reflect that for amendments to the Zoning Code. It would: 1. Provide for the City Council to initiate amendments to any part of the General Plan, as the existing policy; and 2. Provide for property owners to apply for an amendment to the land use designation or development limit for their property, without first receiving approval from the Planning Commission and City Council. This is a change from the current procedure for property owners, which requires an initiation request to be considered by the Planning Commission and City Council before • any applications can be received. Staff is suggesting these changes for the following reasons: 1. The process is very cumbersome because it requires a substantial amount of time (including consideration by both Planning Commission and City Council), and very few proposals have not been initiated; 2. The process is not mentioned nor required by either California State planning law or the General Plan Guidelines; 3. The City Attorney's Office concurs with changing the procedure to insure due process for property owners. Implementation Procedures for CEQA (K -3) The California Environmental Quality Act (CEQA) includes establishment of several exemptions from its provisions. These are Statutory Exemptions, Categorical Exemptions and General Rule Exemptions. Statutory and Categorical Exemptions are defined within the CEQA Guidelines. Qualification for General Rule Exemption is "when it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment..." Agencies such as the City are encouraged to establish General Rule Exemptions within local implementation guidelines or procedures. A number of discretionary decisions defined as projects under CEQA, which are very minor in nature and involve no development or any change in the physical environment, • do not fall with the other exemption types, and warrant qualification under the General Council Policy Manual Update for 2004 April 13, 2004 Page 4 0 Rule Exemption. Staff recommends that the City policy on the implementation of CEQA be amended to include a list of General Rule Exemptions, such as: 1. Minor changes to the Municipal Code which do not authorize physical development; 2. Minor changes to public infrastructure such as installing trees; replacing or upgrading streetlights, traffic signals, etc; and other public improvements of a minor nature; 3. Administrative City actions such as budget amendments, professional services agreements, etc. which do not involve projects which affect the physical environment. Part II -- Affirmation of City's Investment Policy. Following the County of Orange's bankruptcy in late 1994, the State Legislature adopted SIB 564 (Johnston) which requires each local agency to consider its Statement of Investment Policy (the City Council's Policy F -1) annually at a public meeting. The law reads as follows: Government Code § 53646 -- (a) The treasurer or chief fiscal officer shall annually render to the legislative body of the local agency and any oversight committee a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any changes in the policy shall also be considered by the legislative body of the local agency at a public meeting. The Council's review of this policy at a public meeting (the April 13, 2004, City Council Meeting) completes this obligation. is Prepared by: Dave i , Assistant City MEYnager Attachments: A — Summary of Proposed Council Policy Changes B — Council Policies — Strikeout and Underline Versions (except F -24, which is new) ssistant • c Q it. .a OC c 'i0 I E E c Cc I I Z L IL L Id to c It I p d I III: Ii I.o coi I III E d o� , m n m Q nLw0 Y N J V Z.Z. 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'o c a j 1 i In iwoc j ! I j j :a o a o , .c o > .> n > a d I , I M.M :o m Io m o'Im 'm:m o � �ml 'q m <m? :n�c mio"i. 'r 'v m v. d:m Im i. '0'1 IT jm 13 Idl?'N QE Z; z •N im •O' 'O INI O '0i 10 'N i IN NN NEON NIO O N N O _ I I I dIT O a Q I m •IN N r IN N N 0 !0.N mlm;m O N M N I N C N'N' N fro N fD Nj� (D co �fOD Z .N O N Q N Q N Z .N LL d LL N Z' N -IN . I C , ? 2 d N d C U y iL I m W L O Z i . Ia ' I Z 1I o.o� m to m A c = ,Mi �;� o` a u. m IL O 1ry _N y _�y: C O E j N 7 j C 0` O 0� LL O O 2 0 >0 2 <a a "N M yW O> O N O > W � O c E T Q C8 ry y E O E m t O U s w m w 0 :o LL O O _ Io U w m c`oc o�j v o E E` o o c � o g 0_LL 1D Il SN oO m 0 ' e ' m ` w`8 9 ,a o m o ¢o a Ecm c VO m o d I N E y c L 0 w ' N Y � M V7 c D W m m o W w a Q a 1p�y D c 8 Cd _$ pOO m em _ M�� mU D z N OaniE (L wo 5 3 3mo woo 0 J g°•alY I •Y Y Y Y Y Y �Y Y Y Y a�J J J J J J J J J J J J 1 N m a •1 d E U Q qT N N d C L U lC C lC U ,V m d O m a oa ao •V y N C Z ri 7 0: O � n Una I �I ml U D � I p� I ! I � I I I _r I i I I I i U I� ! JI N; 'N; 'N;IO mlm�mlm!m c 'o!n 'm'o ;o � 2 2j � .m rn11 0 0 S S Z IdL Q �W Z W'a:a Z Z JI N; 'N; 'N;IO mlm�mlm!m I I IOIN IUD O 'NtD�101N ' I N n10�0 O iQl` W NL- �Iv N n,,; �,cd.ih iv IU = a; aj N ° �o d m •� l Ea d c: d of a T ...c 00 a` m E c m I d DINiy m� N d m'a d d'U ova d C o P o d d a lc a a'- m•- °c N c> N d N N N N I� a•8I m N C !`clm d,m m o I �Z'm a` J y Nm�c y a` a U po c aIE �. Z v 3 �.m 0 s 8d ' o c d m 0 o 0 ` cd mm m u m m mm I ��!O� NItD m hIN. N NIN Ia.�I J JJ :J J J J J J J b d • 0 0 • PARK FEE POLICY PURPOSE r:Di The City of Newport Beach maintains an extensive park and open space system. The acquisition and development of our park and open space properties is funded, in part, through the payment of park fees paid by persons or entities who subdivide properties. The Subdivision Map Act requires park fees to be used only for the purpose of developing new or rehabilitating existing neighborhood or community park or recreational facilities to serve the subdivision that paid the fees. The City is required to develop a schedule specifying how, when and where the park fees will be used. The purpose of this Policy is to establish the criteria to be used in deciding which facilities serve subdivision residents and schedule whereby park fees are properly and timely committed to appropriate projects. POLICY A. Service Criteria. The Recreation and Open Space Element of the General Plan states that community parks and view parks serve the entire City. Community parks are those with improvements such as community buildings, parking, swimming, facilities for picnicking, active sports and other facilities that serve a larger population. Neighborhood parks which include unique recreational facilities, such as basketball courts, tennis courts, turf areas, active sports fields, community buildings, unique play areas or view parks are also considered City- wide resources used by all citizens. Accordingly, park fees generated by any subdivision within the City may be used to develop new or rehabilitate existing community parks, view parks, and those neighborhood parks listed on Exhibit A. The Recreation and Open Space Element divides the City into 11 services areas consisting of relatively discrete residential communities. These service areas were created for the purpose of determining whether particular geographical areas were deficient in terms of park and recreational facilities and to identify acquisitions or improvements which would provide residents with greater recreational opportunities. Accordingly, park fees generated by a subdivision within any services are may be used to create new, or rehabilitate, existing park or recreational facilities within that services area and as provided in the Recreation and Open Space Element. 1 MI B. Implementation Schedule. Park fees shall be placed in the General Fund immediately upon receipt with a special designation as Park Fees. These funds, after special designation, shall be used solely for the acquisition or establishment of new, or the rehabilitation of existing, park, open space and recreational facilities. The park fees shall also be placed on a schedule that lists the location of the subdivision, the fees paid, the date on which the fees were paid or the date on which building permits had been issued for 1/2 of the lots created by the subdivision (whichever occurs later), the service area within which the subdivision is located, the neighborhood park, recreation and open space facilities eligible for park fees generated by that subdivision, the date on which the park fees must be committed to specific project of improvements. The park fees shall be used only for the park and recreation facilities identified in the Recreation and Open Space Element and shall be utilized in accordance with the policies and standards specified in the General Plan. Designations for expenditures will be made as part of the annual budget adoption. [Attachment - Exhibit A] Adopted - June 27,1994 Amended - April 23, 2002 Reassigned - April 8, 2003 Formerly I -1 E • 2 0 0 B -1 EXHIBIT A PARK DEDICATION POLICY PARKS GUIDE The following view parks serve as citywide resources by reason of their unusual beauty and the view provided: Bayview Park Jasmine View Park Begonia Park Kings Road Park Channel Place Park Lido Park Cliff Drive Park Lookout Point Corona del Mar State Beach Park Newport Island Park Ensign View Park Peninsula Park Galaxy View Park Rhine Wharf Park Inspiration Point West Jetty View Park Irvine Terrace Park Westcliff Park • Castaways Park • The following Community and Neighborhood Parks serve as citywide resources by reason of the unique recreational opportunities they offer: Arroyo Park - Lighted multi - purpose field, basketball court, picnic areas and playground. Bonita Canyon Sports Park -- (Ai+ic-ipated ehexing r ^^ T Four youth baseball fields, one multi - purpose field, one soccer field, tennis courts, basketball court and connecting trail to Arroyo Park. Bonita Creek Park - Community center, lighted softball and multi - purpose field, and basketball court. Buffalo Hills Park - Basketball court, baseball/ softball diamond, volleyball court, multi - purpose fields. Carroll Beek Community Center and Balboa Island Park - Basketball court and community center. 3 B -1 Community Youth Center /Grant Howald Park - Basketball court, tennis courts, community center, softball and multi - purpose field. Eastbluff Park - Baseball diamond, multi- purpose field, and view of the Back Bay. Harbor View Nature Park - Natural vegetation area. Las Arenas Park - Lighted tennis court and basketball court. Lincoln Athletic Center - Gymnasium, lighted baseball/ softball diamond and multi - purpose fields. Mariners Park - Multi- purpose room, baseball/ softball facilities, racquetball courts, lighted tennis courts, multi - purpose fields, and an ADA equipped play area. The Oasis Center - Multi- purpose senior facility with classrooms and large multi - purpose room. 0 Peninsula Park - Beach sited multi - purpose field, picnic and barbecue facilities, baseball/ softball diamond and gazebo. San Joaquin Hills Park - Tennis courts and lawn bowling facility. San Miguel Park - Ball diamond, athletic field, four racquetball courts, basketball court and an ADA equipped play area. Theater Arts Center - Ninety seat community theater. West Newport Park - Tennis courts, racquetball courts, basketball court. 38u' Street Park - Basketball courts. 4 0 0 INSTRUCTIONAL RECREATION ACTIVITIES HIM The instructional recreational programs for children and adults provided by the Recreation & Senior Cem}xunit�Services Department will be conducted on the basis of being at least self- supporting. An amount equal to at least 25% of the costs incurred will be set aside for administrative overhead. Registration fees will be based on an amount sufficient to acquire independent contractors, class materials and the administrative overhead and a facility use fee. Occasionally, it may be necessary to conduct a specific class in which revenues are not sufficient to be self- supporting. However, each total recreation program, such as tennis, sailing, surfing, etc., will be at least self- supporting. A sum of money equivalent to 20% of the gross annual revenues derived from the instructional classes in surfing shall be set aside and used for the purpose of purchasing new or replacement surfboards or development of surf related activities. A total of 20% of the registration fees from tennis instructional classes shall be set aside annually for refurbishment or development of courts or development of new recreational programs or facilities. The Recreation & Senior Gemnvanity-Services Director or designee is authorized to enter into agreements for securing independent contractors for approved instructional recreation activities. A total of 20% of the registration fees from the sailing instructional classes and 100% of the proceeds from the agreement for the use of the 29th Street public dock shall be set aside annually for refurbishment and replacement of the recreation sail boat fleet and development of waterfront activities program Adopted - October 1963 Amended - August 30,1966 Amended - November 25,1968 Amended - March 1970 Amended - April 12,1971 Amended - August 9,1971 Amended - February 14,1972 Amended - March 13,1972 I* Amended - November 11, 1974 Amended - March 24,1975 Amended - December 8,1975 Amended - November 27,1978 Amended - November 28,1988 Reassigned - January 24, 1994 Amended - February 27,1995 Amended - December 14,1998 Amended - May 8, 2001 Amended - April 8, 2003 1 ,r M CO- SPONSORED EVENTS The Recreation & Senior Eenuntinity Services Department maywill -- accept co- sponsorship of events when one of the following criteria is met: A. The City solicits the co- sponsor. B. The co- sponsor solicits the City by completing an application for review by the Parks, Beaches and Recreation Commission. Applicants shall be required to satisfy the Department's self- supporting nature by sharing profits. C. Co- sponsored events or programs that are not self- supporting shall be subject to being approved by the annual budget process that would appropriate funds for the activity. Adopted - July 22,1991 Amended - January 24,1994 Reassigned - April 8, 2003 • Formerly I -14 Formerly I -3 • 1 OASIS SENIOR CENTER OPERATION AND RELATIONSHIPS In today's era of limited resources, support groups have formed to render essential assistance, both in time and money, to worthwhile public programs and facilities. In the contest of a philosophy which encourages people to help themselves in their leisure pursuits, the Recreation & Senior Services Department is committed to a cooperative effort to provide senior programs and services at the Oasis Center. The Department welcomes volunteer support and intends by this policy to identify the relationship, roles and control between the City of Newport Beach and Friends of OasiSOASIS. FACILITY USE AND SCHEDULING A. The City, through the Recreation & Senior Eommunit),-Services Department, is responsible for determining priorities of use and overall scheduling of the OASIS Oasis- Senior Center. B. Senior - citizen activities shall have priority of use, in accordance with Council Policy B =1315, Public Use of City Facilities. C. The senior- citizen programs at the Oasis -OASIS Senior Center are cooperative efforts of the Recreation & Senior G-ey- Services Department and the Friends of OasisOASIS; as Department programs -- and in consideration of the • significant volunteer contribution by the Friends of Oasis- OASIS -- facility use fees are not appropriate. D. Planning and coordination of activities at the Oasis -OASIS Senior Center will be done by the Senior Services staff, with input from the Friends of Oasis -OASIS Board. E. The Department maintains a master calendar for the Oasis -OASIS Senior Center; use by other Department programs and outside groups will be handled by Department staff as specified by Council Policy B- 131-5, Public Use of City Facilities. PROGRAMMING AND ADMINISTRATION A. The Senior Services Manager is responsible for day -to -day operation of the OASIS Senior Oasis- Center. B. Within the context of cooperation, programming decisions will be made jointly by the Senior Services Manager and the Friends of Oasis -OASIS President. C. The Senior Services Manager and Friends of Oasis-OASIS President shall be ex- • officio members of each Friends of Oasis -OASIS Committee. 1 r_ W D. The Senior Services Manager will be an ex- officio member of the Friends of Basis 0 OASIS Executive Committee and the Board of Directors. E. Any improvement or physical change of the Oasis OASIS Senior Center must have advance approval by the Cemtu— Recreation & Senior Services Departmen Director. FINANCIAL A. The City is responsible for financing the Oasis-OASIS Senior Center operation only to the extent of the annual City Council approved budget. B. Equipment, services and financial contributions provided by the Friends of Oasis OASIS are welcome and are in keeping with the cooperative philosophy. C. Friends of OasisOASIS shall maintain accurate records of all finances. A copy of all Friends of Oasis OASIS financial reports will be forwarded to the amity Recreation & Senior Services Department. D. Fund raising or activities that provide private monetary gain must comply with Council Policy B =41-4, Commercial Uses In Public Parks. E. A total of 10% of the rental fees collected from the public use of facilities at Oasis 1 OASIS Senior Center shall be set aside annually for equipment replacement and /or required refurbishments at Basis -OASIS Senior Center. INSURANCE The Friends of Basis -OASIS shall provide evidence of adequate insurance coverage as determined by the City. Adopted - January 21, 1980 Amended - November 28,1988 Amended - January 24,1994 Amended - May 8, 2001 Amended - April 23, 2002 Reassigned - April 8, 2003 Formerly I -17 Formerly I -5 �1 PA SPECIAL EVENT PERMIT REQUEST PROCESSING PURPOSE IMAK To set forth City policy concerning administration and control of special events. Special events include activities as defined by Municipal Code Chapter 11 section 11.039. Requests that include activities for which the Municipal Code requires that a permit be obtained may be included in the special event permit process. POLICY It is the policy of the City Council to ensure that the numerous special event activities permitted by the City do not negatively affect the community, that requests for permits are efficiently processed by staff, that City liability is eliminated, that all appropriate insurance requirements are met, and that costs for municipal services provided are kept at a reasonable level and recovered from the event sponsors. Affected City departments shall be notified of special event permit requests in accordance with the schedule attached and provide recommendations on how to conduct the event safely, lawfully and with a minimum negative impact on the community. It is the responsibility of the Recreation & Senior Services Director to coordinate the administration of special events and to be the central contact point for residents or other event sponsors, as well as the various City Departments having influence or control over aspects of any given event. Requests for special event permit applications will be received by a special event coordinator in Recreation & Senior Services and routinely routed to appropriate departments for investigation. Each department will investigate the proposed event and make a recommendation for approval or denial of the event. If recommended for approval, recommended conditions for approval will also be presented. Events that include the following activities or aspects shall be additionally reviewed by the departments indicated: Activi Fireworks Tents & Canopies Reviewing Department Fire Department Police Department City Manager Fire Department Building Department 1 0 9 L-W ij Requests on the Harbor Harbor Resources Division Sheriff's Harbor Department Requests on the Balboa Pier Public Works Requests on McFadden Plaza Public Works Requests on the Newport Pier Public Works Requests on Public Beaches Harbor Resources Division General Services Fire Department Requests in a Public Park Recreation & Senior Services Department, General Services Requests to Deviate from Use Permit Planning Department Requests at a Commercial Location Planning Department Garage Sales Planning Department Signs & Banners on Private Property Planning Department Signs & Banners on Public Property Public Works Amplified Sound at a Commercial Location Planning Department Amplified Sound at a Residential Location Police Department Temporary Street or Sidewalk Closures Public Works General Services Sidewalk Sales Public Works Use of Public Property Risk Manager • Public Food Service Health Department ij B -7 0 Use of Back Bay Drive Department of Fish & Game General Services Public Works If each department reviewing a special event permit application recommends approval of issuance of the permit, a permit will be issued to the applicant listing the conditions provided by each department. The City Council shall authorize approval of any request for special event permit when: A. Required by Municipal Code. B. When a Level 3 Special Event Permit has been denied and the applicant chooses to appeal the denialn^^ or. mare reviewing departments reEenunend denial. Adopted - January 24, 1994 Amended - February 24,1997 Amended - May 8, 2001 Amended & Reassigned - April 8, 2003 Formerly I -7 3 • 0 0 :: BIKE, FOOT RACE AND SURF CONTEST POLICY The purpose of this policy regarding the use of City streets and beaches for conducting bicycle races, running events, surf contests and other athletic contests is to minimize the inconvenience to City residents, and to eliminate any potential City liability for injuries resulting from the event. All bicycle races, running events, surf contests and similar athletic contests shall be required to secure a Special Event Permit, comply with all of the conditions to the permit, and comply with the provisions of this Policy. Races, running events and other athletic contests using City streets shall not be conducted during the summer (June 15 through September 15). No more than twelve (12) such events shall be permitted during any calendar year and not more than four (4) in one g_eoplaphical area in one year. Surf contests using City beaches shall not be conducted during Memorial Day weekend or summer (June 15 - September 15). No more than eight (8) large and /or commercial events shall be permitted during any calendar year and events shall be scheduled at least three (3) weeks apart. All Surf competitions, no matter what the size, are required to register with the Recreation & Senior Services Department a minimum of one month prior to the scheduled event in order to receive approval for use of the requested location. There is no fee for registration of a surf competition, only for the Special Event Permit, if needed. All responsible parties must be able to provide upon request proof of a valid registration approval during the hours of the surf competition. The person or entity primarily responsible for administering the event must prove their ability to pay for all required City safety and maintenance services prior to issuance of any permit. Proof of ability to pay for these services shall be in the form of a cash deposit, bond, or similar instrument. The permittee shall, prior to the event, provide the City with evidence of insurance, with the City named as an additionally insured, with minimum coverage of one (1) million dollars per occurrence unless the City Attorney and City Manager determine that due to the circumstances surrounding the event, more insurance coverage is necessary. No permit shall be issued for any race, running event, surf contest or athletic contest which is sponsored or financially supported by a tobacco or alcohol company and no alcohol or tobacco shall be permitted to be dispensed or available in the event there are participants under the age of 21. Surf contest permits will be granted for specific dates only. No more than one surf contest will be scheduled per day. Surf contest permits do not allow for the exclusive use of the ocean or contest area and are always subject to blackball rules and 1 � J B -8 regulations. There can only be a maximum of six (6) large and /or commercial contests • at any one location per calendar year. The Fire Department determines acceptable locations for surf contests. Adopted - February 14,1983 Amended - November 14,1983 Amended - September 22,1986 Amended - January 24,1994 Amended - July 25, 2000 Amended & Reassigned - April 8, 2003 Formerly I -21 Formerly 1 -8 2 Li T, -r n V :- TEMPORARY SIGNS WITH SPONSORSHIP RECOGNITION IN CITY PARKS AND BEACHES Temporary signs which recognize sponsorship of City sponsored or co- sponsored sports programs may be posted in a City park or beach when the signage complies with the criteria set forth in this policy. The PiK-Eter- of—tli-e- Recreation & Senior Services Director Department will require that sponsorship signs meet the following guidelines and that any other approvals which may be required are obtained: A. The signage must relate to a program sponsored or co- sponsored by the City of Newport Beach. B. The signage must: 1. Not exceed twenty -four (24) square feet in size; 2. Be posted in a location not visible from public streets and pre- approved by the Recreation & Senior Services Department; 3. Be posted only during the designated priority season for that sports group; 4. Be aesthetically appealing, with consideration for the surrounding area. C. No signage for alcohol or tobacco is permitted. D. The applicant is responsible for placement and removal of signage and for storage, damage, theft, or loss of any sign posted. Adopted - September 14,1998 Amended & Reassigned - April 8, 2003 Formerly I -26 • 1 MAXIMIZING PUBLIC ACCESS TO CITY PARKS The purpose of this policy is to maximize access for the general public to the parks of the City of Newport Beach. As steward of the coastal parks and beaches, the City Council establishes the following guidelines for reserved use of those City parks in high traffic areas: A. Reservations for the use of Inspiration Point and Lookout Point; anti -P insula P-a3 -k shall be permitted only during the non -peak tourist season, specifically the period after the Labor Day weekend in September to, but not including, Memorial Day weekend in May: B. Groups of more than 20 attendees or participants may not reserve the following view parks at any time: Ensign View Park Galaxy View Park Inspiration Point Lookout Point C. Reservations for use of City park areas can only be made through the City, with payment fees established by resolution of the City Council. D. The Part: Patrol Program undertakes Git- '-e>I4NL kkvpoFt-' )each-- ks-i11- 11ntk- ri-ake -a -[lie program of public of the rules and regulations for the use of all City parks, especially those of high use and during the peak summer season . l his -t e t t ei- tal<ei ; , CC le cam; m posi E. Exceptions to this policy shall only be events co- sponsored by the City of Newport Beach, such as the Corona del Mar 5K Race, and for events at Penin;ala Pa4:1- or Galaxy View Park approved through the Special Event Permit process. Adopted - February 26, 2002 Reassigned - April 8, 2003 Formerly I -28 11 1 • d(, t 0 STATEMENT OF INVESTMENT POLICY PURPOSE F -1 To set forth the City's policy concerning the investment of temporarily idle funds. It is the policy of the City to invest funds not required for immediate expenditures. Investments will be in compliance with governing provisions of law and the policy contained herein. Primary investment goals are security of principal, adequate liquidity maintenance, and yield, in that order. Investments shall be placed only in securities as outlined below. The balance between various investment instruments may change in order to provide the City with the best combination of yield, liquidity, and a consideration for other factors, such as placement of an appropriate percentage of available investment funds locally. It shall be the main responsibility of the City Council, in adopting this policy and reviewing the investment holdings on a monthly basis, to preserve the investment principal. INVESTMENT AUTHORITY • Under the direction of the City Manager, the investment authority has been delegated to the Director of Administrative Services, who is responsible for administration of the City's investment program, and who shall thereafter provide a monthly report regarding the status and changes in the City's investment portfolio to the City Council. This authority shall be renewed annually as part of the review and update of this Policy. In addition to the monthly investment report that is submitted to the City Council, the Administrative Services Director shall provide more detailed investment information to the City Council as requested. The City Council shall be briefed directly by the City's investment advisors on a quarterly basis whenever possible. Sections 53600 -53601 of the California Government Code provide basic investment limits and guidelines for government entities. In the event an apparent discrepancy is found between this policy and Sections 53600 - 53601, the more restrictive parameters will take precedence. FINANCIAL INSTITUTIONS The City shall not deposit funds with any financial institution not receiving a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation ( §53635.2). 1 F -1 LIQUIDITY Sufficient funding to accommodate at least two- week's projected cash outflow is to be maintained in immediately available investments, such as the State Local Agency Investment Fund, maturing certificates of deposit, or similar liquid instruments. An analysis of cash flow must be conducted at least weekly to serve as the basis for determining appropriate maturities for investments. At no time shall the liquid cash on hand be less than 5 percent of the City's total investment portfolio. For purposes of this policy, cash on hand includes all cash and investments accessible within 48 hours. ACCEPTABLE INVESTMENT INSTRUMENTS The following are types of investments made by the City and the guidelines for investing in each. In all cases, investments shall be made in the context of the "Prudent Man" rule, spelled out in the California Government Code, Section 53600.3 as follows: "When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall investment strategy, as authorized by law." In this light, the City of Newport Beach does not purchase or sell securities on margin. Additionally, any institution, which holds either the collateral or the investment instruments themselves in safekeeping for the City, must maintain at least one billion dollars ($1,000,000,000) in assets. A. Certificates of Deposit Only fully collateralized certificates of deposit with FDIC insured institutions will be utilized in investment of City funds. Government securities having a market value of 110 percent of the total amount of investment are acceptable as collateral. Noncollateralized CD investments may be made in amounts less than $100,000 so long as they are fully insured by the FDIC. C. F -1 Not more than 10 percent of the City's investment portfolio shall be invested in certificates of deposit with any one institution. CD's will not be placed for a period of longer than one year. Further, an institution must meet the following criteria to be considered by the City: 1. The institution must maintain at least $1 billion in assets ($100 million for fully insured CD's of $100,000 or less). 2. The institution must have been in business at least three years. 3. The institution must have a net worth to asset ratio of at least 6 percent. 4. The institution must place and maintain on file with the City an audited financial statement not more than one year old. 5. Interest shall be paid to the City on a monthly basis. • B. Negotiable Certificates of Deposit As a matter of policy, the City invests in Negotiable Certificates of Deposit only with U.S. Banks whose underlying securities are rated A -1 or P -1 by one of the top two rating agencies and having assets in excess of $10 billion, so as to insure security and a large, well - established secondary market. Ease of subsequent marketability is further ascertained prior to initial investment by examining currently quoted bids by primary dealers and the acceptability of the issuer by these dealers. No one issuer shall exceed more than 10 percent of the portfolio, and maturity shall not exceed one year. The California Government Code Section 53601 limits investment in negotiable certificates of deposit to 30 percent of the portfolio. C. Bankers Acceptances The City may invest only in Bankers Acceptances issued by the 100 largest banks in the world, which are eligible for purchase by the Federal Reserve System, the short term paper of which is rated at the highest category by Moody's and Standard & Poor's. In the case of foreign banks, the Bankers Acceptances must be written by their U.S. branches. Maximum maturity shall be 180 days. No more than 30 percent of the City's overall investment portfolio shall be placed in 0 3 F -1 Bankers Acceptances, with no more than 10 percent of the City's portfolio invested in the banker's acceptances of any one commercial bank. D. U.S. Treasury Issues The City may invest in treasury notes, bills and bonds. Maximum maturity of any U.S. Treasury issue shall be five years. E. Federal Agency or United States Government- SRonsored Enterprise Obligations Securities of Federal Agencies and Fedefal instfumentalifies Securities of this type that are acceptable for the City's investments are Federal National Mortgage Association, Federal Home Loan Bank notes, Federal National Mortgage Association notes, Federal Farm Credit Bank notes, — Federal Home Loan Mortgage Corporation notes, or any other U. S. Government Agency security. F. Commercial Paper The City may only invest in commercial paper of "prime" quality with the • highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical- rating organization (NRSRO). The entity that issues the commercial pier shall meet all of the following conditions in either paragraph (1 ) or paragraph (2) issued by large, exceptionally , ell ,.,..bushed firms (firms with assets greater than $1billien and t4eir subsidiaries) ga ,.zed .,a .. t: il, vi.- .:.e... with al, highest TR,,ed ' ca..ndard .P_ er Poor's rating (A imp 1) The entitv meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,OOO). Q Has debt other than commercial paper, if any, that is rated "A" or higher by a nationally recognized statistical- rating organization. (2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (C) Has commercial paper that is rated "A -1" or higher, or the equivalent, by a nationally recognized statistical- rating organization. 0 F -1 Commercial paper shall be used solely as a short -term investment not to exceed 270 days. No more than 25 percent of the City's portfolio may be invested in commercial paper. Investment in commercial paper of any one issuer shall not exceed 10 percent of the portfolio. G. Repurchase Agreements ( Repos) and Reverse Repurchase Agreements Repos and reverse repos shall be used solely as a short -term investment not to exceed 30 days. The institution from which the City purchases a Repo must deliver adequate collateral to the City's safekeeping account (either directly or through a third party safekeeping agent), consisting of U.S. Treasury or Agency securities at the rate of 102 percent of the face value of the repo. The amount of this collateral must be sufficient to compensate for fluctuating market conditions. Repos will only be purchased from Primary Dealers. The City must own assets for more than 30 days before they can be used as collateral for a reverse repurchase agreement. No more than 10 percent of the portfolio can be involved in reverse repos. H. Passbook Savings Accounts Savings accounts may be used as a repository for customer deposits, or for similar purposes. Consistent with the requirements for CD investments, funds deposited in savings accounts must either be FDIC insured or collateralized. I. Local Agency Investment Fund (LAIF) (State of California) State Regulation of LAIF is set forth in California Government Code Section 16429.1. The current limits on any one City investment in this fund is $40 million, and the number of transactions (deposits or withdrawals) is limited to 15 per month. The City's participation in LAIF shall conform to State Regulation. In general, it is the City's intention to use investment in LAIF as a temporary repository for short -term funds needed for liquidity purposes. The Administrative Services Director shall maintain on file appropriate information concerning LAIF's current investment policies, practices and performance; as well as its requirements for participation, including, but not limited to, limitations on deposits or withdrawals and the composition of the portfolio. J. County Investment Funds 5 F -1 E Los Angeles County provides a service similar to LAIF for municipal and other government entities. This Fund is available to certain cities outside of Los Angeles County, including Newport Beach. Investment in this pool is intended to be used as a temporary repository for short -term funds used for liquidity purposes. At no time shall more than 5 percent of the City's total investment portfolio be placed in this Pool. The Administrative Services Director shall maintain on file appropriate information concerning the county pool's current investment policies, practices and performance; as well as its requirements for participation, including, but not limited to, limitations on deposits or withdrawals and the composition of the portfolio. The City shall not invest funds with the Orange County Pool. K. Medium Term Corporate Bonds /Notes Investments of this type will only be in corporations rated AA or better by nationally recognized rating services. Maximum term to maturity for individual securities shall not exceed four years. No more than 30 percent of the City's investment funds shall be placed in securities of this type. . L. Mortgage- backed Securities and Asset - backed Securities Investments in securities of this type are limited to mortgage- backed pass - through securities issued by a US government agency; or consumer receivable pass - through certificates or bonds. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by Moody's Investor Services and S &P. The security itself shall be rated in a rating category of "AAA" or its equivalent or better by Moody's Investor Services and S &P. The maximum final stated maturity of any security of this type shall be five years. No more than 20% of the City's investment funds shall be placed in securities of this type. M. Municipal Bonds Municipal bonds rated AAA, or AA and insured, are acceptable investments for the City. Not more than 15 percent of the portfolio shall be in investments of this type. 6 0 0 F -1 N. Money Market Funds The City may invest in Money Market Funds subject to the following constraints. Investment in these funds is primarily intended for short -term "sweep account" purposes, not for longer -term investments. 1. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a -1.) 2. The company shall have met either of the following criteria: a. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. b. Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than ten years' experience managing money market mutual funds with assets under management in excess of one billion dollars ($1,000,000,000). 3. The purchase price of shares of beneficial interest purchased shall not include any commission that the companies may charge. 4. No more than 20 percent of the City's investment portfolio shall be invested in money market funds. 5. The City shall invest only in Money Market Funds that have a policy of maintaining a constant daily net asset value per share of $1.00. PROHIBITED INVESTMENTS Consistent with California Government Code 53601.6, inverse floaters, range notes, mortgage derived interest -only strips, or any security that could result in zero interest accrual if held to maturity are specifically prohibited, except to the extent that they are 7 J F -1 shares of diversified management companies registered under the Investment Company Act of 1940. The City shall not purchase any security rated Al and or A+ or below if that security has been placed on "credit watch" for a possible downgrade by either Moody's Investor Services or Standard and Poor's. Investments not specifically approved by this policy are prohibited. ASSET/ INVESTMENT MANAGEMENT AGREEMENTS The City may employ the services of asset/ investment management companies. Such companies must have a history of producing no losses and relatively high net returns. They must also be well established and exceptionally reputable. Members of the staffs of such companies who will have primary responsibility for managing the City's investments must have a working familiarity with the special requirements and constraints of investing municipal funds in general and this City's funds in particular. They must contractually agree to conform to all provisions of governing law and the collateralization and other requirements contained herein. At no time shall more than 30 percent of the City's total investment portfolio be placed in any one investment management account. In order to implement this requirement, the City's portfolio assets will be reallocated annually among its investment managers. SAFEKEEPING /THIRD PARTY CUSTODIANS All cash and securities in the City's portfolio, including those that are being managed by private sector asset/ investment management companies, shall be held in safekeeping in the City's name by a third party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. The City will contract separately with major banks or other well - established, reputable financial institutions, which provide custodial services to maintain custody of cash and securities in the City's portfolio. In the case of a major financial institution, the City may have an asset/ investment management relationship, and a custodial relationship, with the same entity. However, the services must be provided by separately managed departments within that entity, and the City's assets must be held in the City's name completely separate and distinct from the assets of the institution and from all other portfolios managed by the institution. IV F -1 All securities will be received and delivered using standard delivery versus payment (DVP) procedures, the City's safekeeping agent will only release payment for a security after the security has been properly delivered. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; and, (ii) money market mutual funds, since the purchased securities are not deliverable. BOND PROCEEDS The investment of bond proceeds will be made in accordance with applicable bond indentures. RATING AGENCY CHANGES In the event a security held by the City is the subject of a rate drop which brings it below accepted minimums specified herein, or the security is placed on negative credit watch, where downgrade could result in a rate drop below acceptable levels, the • investment advisor who purchased the security will immediately notify the Administrative Services Director or Deputy Director of that fact. The course of action to be followed will then be decided on a case by case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further drop, and market price of the security. The City Council will be advised of the situation and intended course of action by e -snail or fax. REPORTING REQUIREMENTS In addition to the Monthly Investment Report, the City Council and City Manager shall receive a detailed quarterly listing of all investments in the City portfolio. The report must show the type of investment, issuer, date of maturity, par and dollar amount of deposit/ investment, and rate of interest. Quarterly reports from outside investment managers must also include market valuation of assets under their management and the source of that valuation, and shall also include a statement of compliance with investment policy. Current ratings of non - government securities, either Moody's or Standard & Poor's, will be included. In his report to Council, the Director of Administrative Services shall include a statement denoting the ability of the City to meet its expenditures for the next six months, and shall also include a statement of compliance with investment policy for 9 J F -1 • assets under his direct management. In addition, the City Council shall be notified whenever 5 percent or more of the total portfolio is invested, withdrawn, or moved from one Investment Advisor or Pool to another. Adopted - April 6,1959 Amended - November 9,1970 Amended - February 11, 1974 Amended - February 9,1981 Amended - October 27,1986 Rewritten - October 22,1990 Amended - January 28,1991 Amended - January 24,1994 Amended - January 9,1995 Amended - April 22,1996 Corrected - January 27,1997 Amended - February 24,1997 Amended - May 26,1998 Reaffirmed - March 22,1999 Reaffirmed - March 14, 2000 Amended & Reaffirmed - May 8, 2001 Amended & Reaffirmed - April 23, 2002 Amended & Reaffirmed - April 8, 2003 Amended & Reaffirmed - XXXXX, 2004 0 10 0 4� J RESERVES/ DESIGNATIONS OF FUND BALANCE PURPOSE F -2 To establish City Council policy for the administration of financial reserves and fund balances. DISCUSSION A. Background. Prudent financial management dictates that some portion of the funds available to the City be reserved for future use. Future uses are categorized as either pre - planned projects or unforeseen financial emergencies. For clarification, the City also has a number of Special Revenue Funds. These Funds are somewhat similar to reserves in that they act as a repository for money that can only be used for specific purposes. Reserves are generally distinguished from Special Revenue Funds in that decisions regarding the purpose and /or the amounts to be set aside, as well as the circumstances for use, normally fall within • the authority of the City Council. That authority normally rests largely with an external entity in the case of Special Revenue Funds. B. Structure and Funding of Reserves. This Policy establishes Reserve Accounts or designated Fund Balance levels for moneys being held in reserve. In addition, the sources and eventual use of Reserve Funds are set forth. It is the policy of the City Council that each Reserve identified herein is to be fully funded as part of the annual budget process. If operational or other considerations require the City Council to temporarily override this policy during any fiscal year, the City Manager will recommend to the City Council a plan to restore any Reserves falling below required minimum levels. Reserve levels will be restored as soon as practical, but in not more than 5 years. Each of the City's fiscal reserves is established and maintained for one of four purposes listed in general order of importance below. If the reserve requirements of this policy are unmet in any fiscal year, the City Manager will recommend funding prioritization to the City Council as part of the Budget. Use of Reserves. The City Council decides whether to appropriate funds from Reserve Accounts. Even though a project or other expenditure qualifies as a proper use of Reserves, the Council may decide that it is more beneficial to use 1 F -2 • current year operating funds or bond proceeds instead, thereby retaining the Reserve funds for future use. Reserve Funds will not be spent for any function other than the specific purpose of the Reserve Account from which they are drawn without a separate City Council Resolution approving that specific action. Information regarding Annual Budget Adoption and Administration is contained in City Council Policy F -3. C. Categories of Reserves. 1. Accounting Reserves. Generally accepted governmental accounting practices require identification of generic reserve funds for certain purposes. These accounts represent the unspendable portions of fund balance, such as inventories and long -term receivables, as well as funds that are legally restricted by some external source, such as debt service reserves and encumbrances. Reserving funds for a contract awarded in one year but not completed until a succeeding year is one example of an accounting reserve for encumbrance. 2. Contingency Reserves. Contingency Reserves represent funds for unexpected financial emergencies. One example requiring the use of this Reserve is the adverse impact of natural disasters such as earthquake or flooding on revenue availability, as well as increased demand for City services. Other examples are unexpected loss or reduction of a key revenue source; special projects, programs, or price changes mandated by another government entity; and emergency capital projects needed to deal with unforeseen structural failure. 3. Designated Reserves. These Reserves are designated for known or anticipated events. Such events require large, non - recurring financial outlay, such as the replacement of systems and equipment or major capital improvements. 4. Stabilization Reserves. Stabilization Reserves enhance the orderly management of the Operating Budget by stabilizing revenues and expenditures, which fluctuate beyond the ability of City staff to control or predict. One example is the annual change in retirement contribution rates mandated by the Public Employee Retirement System (PERS). Other examples are changing prices for utilities and fuel, market value adiustment for investment earnings, ands° w ate volatility in certain W] �C. • F -2 special program funding. These Reserves provide stability by "smoothing out" year -to -year volatility in the City's finances. FUNCTION AND ADMINISTRATION OF RESERVE ACCOUNTS Reserves are identified below by fund, category and specific function. The specific numbers of accounts where these Reserves are physically located change from time to time as the overall account structure is updated and modified. However, the Fund Balance Statement, which is available for ready reference in the City's Annual Budget document, identifies balances, past -year activity, and projected current year activity for each of these Reserves. A. General Fund. 1. Accounting Reserves. a. Reserve for Inventories. The value of inventories purchased by the City but not yet issued to the operating Departments is reflected in • this account. b. Reserve for Debt Service. Funds are placed in this Reserve at the time debt is issued. The provisions governing the Reserve are established in the Bond Indenture, and the Reserve itself is controlled by the Trustee. C. Reserve for Long Term Receivables. This Reserve is used to identify and segregate that portion of the City's financial assets which are not due to be received for an extended period, so are not available during the budget year. d. Reserve for Encumbrances. This Reserve accommodates spending for contracts or other items, which are legally committed but not expended by fiscal year end. 2. Contingency Reserve. This Reserve has a target balance of not less than ten percent (10 %) of annual General Fund expenditures. The City Council authorizes expenditures from this Reserve. 1 Designated Reserves. 0 3 F -2 a. Capital Improvement. Generally accepted governmental accounting practices do not provide for the depreciation of assets of Governmental Funds such as the General Fund. Therefore, special procedures are required to set aside money (a "sinking fund ") for replacement or renovation of fixed assets such as, but not limited to, City Hall and Police Department buildings, Fire Stations, and Library Branches. The Capital Improvement Reserve will accumulate funds only for infrastructure items financed through the General Fund. Infrastructure assets of Enterprise Funds, as well as those of Governmental Fund, for which non - general fund money is available, are not components of this Reserve. Funds from this Reserve are restricted to replacement or acquisition of periodic, major projects or improvements typically exceeding 0.7 percent (0.7 %) of the annual General Fund Operating Budget (not including capital projects). Projects for which this Reserve is intended generally have the effect of extending the useful lives of infrastructure items. The City Manager will update the status of items of the General Fund infrastructure inventory on an annual basis. Included as part of the City Manager's budget proposal will be a plan to fund this Reserve at a level of not more than one hundred percent (100 %) of the replacement cost of each asset by the year in which replacement is anticipated. b. Senior Citizen Site. This Reserve is established by Council Policy I -5, which specifies that ten percent (10 %) of revenue collected from rental of facilities at the Oasis Center be set aside for equipment replacement and /or refurbishment at the Center. C. Park Fees. This Reserve contains Park Fees collected' by the construction permit process. Use of Park Fees is governed by Council Policy I -1, which limits their expenditure to park, open space, and recreational facilities. d. Off Street Parking. Newport Beach Municipal Code 12.44.025 establishes this Reserve and governs its administration. Fifty percent (50 %) of parking meter revenue collected in designated 4 • • F -2 areas is set aside for acquisition, development, and improvement of off street parking facilities within those areas. e. Paramedic Pro rg am (Hoag). This Reserve was established by the City in conjunction with debt issuance agreements with Hoag Hospital. In addition to the original amount(s) deposited to this reserve, effective July 1, 2000, any excess revenues generated by this program, after accounting for General City Overhead of fifteen percent (15 %), shall be deposited to this reserve account for future paramedic related purposes, to a maximum of $250,000. Funds in this reserve account may be used for any paramedic related purpose as directed by the City Council. Target level for this reserve is twenty-five percent (25 %) of the annual budget for operations and capital expenditures. f. Recreational Instruction Reserve. City Council Policy I -2 establishes reserves for surfboard replacement and refurbishment, development of tennis courts, and development of new recreational • activities. The Policy requires twenty percent (20 %) of gross annual revenues derived from specified recreational classes be set aside. g. In Lieu Parking Reserve. This Reserve is established by NBMC 12.44.125. The City requires commercial businesses to provide adequate off - street parking. In some cases where this is not possible, businesses are afforded the opportunity to pay an annual fee and use parking spaces in a municipal lot, providing such a lot is located within specified proximity to the business. This Reserve is the repository for these fees. Special purposes of the use of these funds have not been established by the City Council. h. Park In Lieu Reserve. This Reserve was established by NBMC 19.52. The City requires dedication of land or payment of fees for park or recreational purposes in conjunction with residential development. When fees are paid, the funds are placed in this Reserve. Specific guidance regarding use of the funds is contained in 19.52.030 and 19.52.070. L Neighborhood Enhancement Reserve A. This Reserve was established by NBMC 12.44.027, which directs that Revenues from parking meters in Zone 9 shall be apportioned to this Reserve. 5 F -2 is Funds in the Reserve will then be used for the purpose of enhancing and supplementing services to the West Newport area. Both the nature of the supplemental services and the definition of the area served are set forth in the Code Section above. Neighborhood Enhancement Reserve B. This Reserve is almost the same as Reserve A above. The difference is that this Reserve pertains to the Balboa Peninsula, and it specifies that fifty percent (50 %) of the parking meter revenue will be apportioned to the Reserve. Specific details are contained in the Code Section. k. Ocean Front Restoration Reserve. In the early 1990's, it was discovered by survey that improvements to several ocean front parcels were encroaching onto the public beach. The encroachment was relatively minor. The negotiated solution was for the property owners to pay a permit fee each year to the City. Revenue thus generated may only be used for ocean front restoration projects and incidental costs of improvements and maintenance to enhance public access and use of ocean beaches as approved by the City Council. This Reserve is the repository for those funds. City Council Policy L -12 contains additional background and details about the encroachment issue. NBMC 12.44.027 establishes this Reserve Account, governs its administration, and defines areas in and purposes for which funds in the account may be spent. Other Designated Reserves. The Administrative Services Director may add additional designated reserves as required. This will normally be done in response to new programs or policies established by the City Council or another government entity providing funds to the City. Examples are the Oil Spill Recovery Reserve and the Public Library Fund Reserve. 4. Stabilization Reserves. a. General Fund Stabilization Reserve. This Reserve has a target balance of two percent (2 %) of the budgeted expenditures within the General Fund. Each year, the City Manager will analyze uncontrollable revenues and expenditures. When expenditures are required from this Reserve, the City Manager will note the reasons 6 0 r • F -2 in the preliminary and final budget. The Stabilization Reserve may have subdivisions. b. Reserve for Appropriations. This is a temporary repository for funds not yet fully appropriated in the annual budget. It is normally used during the budget process to set aside funds for known or strongly anticipated expenses that will need to be addressed by budget amendment during the budget year. Sometimes the dollar amount and /or appropriate account breakdown for such expenses cannot be specifically identified at the time the budget is adopted, even though the funds will be needed. In such cases, the funds will normally be budgeted to the Reserve for Appropriations. C. Change in Fair Market Value of Investments. As dictated by GASB 31, the City is required to record investments at their fair value (market value). This accounting practice is necessary to insure that the Citv's investment assets are shown at their true value on the • balance sheet. However, in a fluctuating interest rate environment, this practice ef—recordirgs n market value gains or losses which may never be actually realized-. avA 1n any case it causes the gains or losses to be recorded well ahead of actual cash flows Therefore, although actual cash investment earnings may be relatively stable, investinent income recorded on the City's books will often be artificially volatile. From a budgeting standpoint actual cash investment earnings should be considered as available for the annual budgeting rop cess whereas market value fluctuations should not. Therefore in order to mitigate any such adverse budgetaryimpact, the City records two Stabilization Reserves related to Market Value fluctuation: Reserve for Prior Year Unrealized Market Value Gains: This is a known value that will be reserved annually during the City's closing process since the early recognition of investment earnings will reduce the investment earnings potential in the new year. (Target Balance = to Prior Year MV Gain) Reserve for Potential Current Year Market Fluctuation: This is a • defensive reserve that may be utilized to avail resources during the 7 F -2 0 next budgeting cycle if interest rates rise sharply relative to the investment portfolio's current stated return. (Target should be 2% of General Fund's position in total Investment portfolio). .. - - r. _ r d-d. PERS Rate Reserve. This Special Subdivision of the Stabilization Reserve has been established for the specific purpose of helping to smooth out (for internal budgeting purposes) the year -to -year fluctuations in PERS rates. PERS rates have been one of the most volatile and unstable elements on the expense side of the City's annual budget process. The long -term goal is to budget the normal cost of PERS rates, setting aside the extra money in this Reserve when actual rates are below that level. Conversely, when actual rates are above that level, funds from this Reserve can be drawn upon. At this writing (2003) significant PERS rate increases in the out years are anticipated. Therefore extra funds will be placed in this Reserve, subject to availability. B. Tide and Submerged Land Fund. Within this Special Revenue Fund, a- special Designated Reserves haves been created. Upper Newport Bay Restoration Reserve. This reserve is the repository for funds mandated by S13573, as well as special fees charged to permit holders as an alternative to meeting certain specified mitigation criteria. In addition to the • F -2 mitigation fees, 10% of Beacon bay lease revenue is placed in this Reserve. Funds in the Reserve are designated for Upper Newport Bay restoration projects. L J Oil and Gas Designated Reserve. This designation was established by the City with the intent to build a reserve that will provide funding to abandon wells and facilities as they go out of service. Annually, $40,000 will be set aside from the oil and gas field production revenues to fund this reserve. C. Permanent Endowment Fund (Robinson Skinner Annuity). Similar to the above Fund, there is a Designated Reserve within this special purpose Fund. The Newport Bay Dredging Reserve (Robinson - Skinner Annuity. This Reserve is the repository for the Robinson- Skinner Annuity funds. In general, the endowment specifies that the principal amount will not be depleted, but that investment earnings may be used for dredging projects in Newport Bay. D. Water Fund. (City Council Policy L -20 contains additional information concerning budgeting and rate setting within the Water Fund.) 1. Accounting Reserves. The same four Accounting Reserves identified in the General Fund will also be used in the Water Fund. 1-2. Contingency Reserve. Water System Reserve. This Reserve is used for emergency repair to the water system. The target level for this Reserve is thirty-five percent (35 %) of the annual budget for operations. 23. Designated Reserves. Future Water Infrastructure Reserve. This Reserve is used for large designated projects that are part of the water distribution system. System replacement/ upgrade and most improvement/ major maintenance projects are funded within that amount. However, certain large -scale projects are projected on a ten -year horizon, which is updated and refined each year. The purpose of this Reserve is to set aside partial funding for those projects in advance. 0 F -2 n LJ Included as part of the City Manager's annual budget proposal will be a plan to fund this Reserve at a level of not more than one hundred percent (100 %) of the projected cost of planned projects by the year in which contract award is anticipated. Projected future costs notwithstanding, a minimum of ten percent (10 %) of the annual budget for operations will be set aside to this reserve each year. The City Council must approve the ultimate fund transfer from this Reserve to a designated Water Enterprise Fund Capital Project Account as part of the Budget process. No new funds will be added to Designated Reserves unless Contingency and Stabilization Reserves are fully funded. -34. Stabilization Reserve. Water Rate Stabilization Reserve. This Reserve is used for water rate or fee stabilization to offset large expenditures changes such as water purchase, energy or treatment costs. The intent of the Reserve is to provide funds to offset cost increases that are projected to be short - lived, thereby partially eliminating the volatility in annual rate adjustments. It is not intended to offset ongoing, long -term pricing structure changes. The • target level of this reserve is twenty -five percent (25 %) of the annual budget for operations. Funds will be set aside only if target Contingency Reserve level is met. The City Council must approve use of these funds, based on City Manager recommendation. See also City Council Policy L- 20. Change in Fair Market Value of Investments. This Reserve will be used in the Water Fund in the same manner it is used in the General Fund. E. Wastewater Fund. 1. Accounting Reserves. The same four Accounting Reserves identified in the General Fund will also be used in the Wastewater Fund. 4-2. Contingency Reserve. Wastewater System Reserve. This Reserve is used for emergency repair to the Wastewater system. The target level for this Reserve is seventy percent (70 %) of the annual budget for operations. 10 0 0 ova 23. Designated Reserve. Future Wastewater Infrastructure Reserve. This Reserve is used for large designated projects that are part of the City's Wastewater system. Funds are reserved for large -scale future projects, which cannot be accommodated within the annual budget of the year in which they are planned. In the years prior to estimated contract award, the City Manager's budget proposal will include a plan to set money aside in this Reserve sufficient to accumulate not more than one hundred percent (100 %) of the projected cost of such projects. Projected future costs notwithstanding, a minimum of ten percent (10 %) of the annual budget for operations will be set aside to this reserve each year. The City Council must approve the ultimate fund transfer from this Reserve to a designated Wastewater Enterprise Fund Capital Project Account as part of the Budget process. 34. Stabilization Reserve. Wastewater Rate Stabilization Reserve. This Reserve is used for wastewater rate or fee stabilization to offset large expenditure changes such as energy or operational costs. The intent of the Reserve is to provide funds to offset cost increases that are projected to be short - lived, thereby partially eliminating the volatility in annual rate adjustments. It is not intended to offset ongoing, long -term pricing structure changes. The target level of this reserve is twenty -five percent (25 %) of the annual budget for operations. Funds will be set aside only if target Contingency Reserve level is met. The City Council must approve use of these funds, based on City Manager recommendation. See also C:,.., Couiacil Policy r 2& Change in Fair Market Value of Investments. This Reserve will be used in the Wastewater Fund in the same manner it is used in the General Fund. F. Internal Service Funds. Internal Service Funds receive moneys from departmental operating budgets. There are two Internal Service Funds: the Equipment Maintenance and Replacement Fund, and the Insurance Reserve Fund. . One of the functions of Internal Service Funds is to act as reserve accounts. 11 F -2 1. Equipment Maintenance and Replacement Fund. The Equipment Maintenance and Replacement Fund receives operating moneys from the Departments to provide equipment maintenance and to fund the regular replacement of major pieces of equipment (mostly rolling stock) at their economic obsolescence. a. Equipment Maintenance Account. In order to provide adequate funds for unexpected extraordinary costs due to damage or mechanical failure to a large piece of equipment, five percent (5 %) of the total annual budget for equipment maintenance is retained in the Fund. b. Equipment Replacement Account. Departmental operating funds are charged amounts sufficient for the replacement of rolling stock in accordance with Council Policy F -9. Equipment replacement needs vary from year to year; therefore the year -end Fund balance will fluctuate. It will increase substantially in the years preceding major purchases or when an unusually large percentage of the fleet is scheduled for replacement. The City Manager annually determines and adjusts the rates for collection of funds from the Departments based on pricing, future replacement schedules, and other variables. 2. Insurance Reserve Fund. The operating budgets of City's Departments are charged for Liability, Workers' Compensation, and Compensated Absences. a. Liability and Workers' Compensation Accounts. These accounts each serve three purposes: Payment of insurance premiums; Payment of the deductible (self - insured retention) for liability or workers' compensation claims; Reserve for future claims. 12 ' 9 Lie ! F -2 i. Collection of Funds. Each year, the City Manager will determine and adjust the internal collection rates from the Departments. ii. Short Term Expenditures. The Budget will account for projected expenditures during the coming year. iii. Future Costs. Money will be set aside each year to accommodate projected long -term cash outflow. The annual funding level will be sufficient to offset the estimated cost of known claims. Resolution of most claims falls within a three -year window. At this time, the target fund balance each year is eighty percent (80 %) of the estimated overall liability for known or anticipated claims, based on the City's general experience in the past. 3. Compensated Absences Fund. a. Background. Employee benefits such as accumulated flex leave, vacation leave, and sick leave, have a cash value. Accounting practices require that the book value of the City's compensated absences liability reflect the cash outflow as if all absences were cashed out immediately. Much of this cash outflow will never occur, since the benefits will be taken in the form of time off, rather than cash. Additionally, the cash outflow could occur all at once only if the City dissolved and made full payment for all accumulated leave amounts. The largest portion of leave -to -cash conversion is at an employee's retirement. That amount can be estimated with reasonable accuracy. b. Policy and Practice. The City will fund an appropriate amount, but not the entire long -term book liability, for compensated absences. i. Each year, the City Manager will project the amount of expected short -term cash liability for compensated absences and budget expenditures from the Compensated Absences • Account. 13 F -2 9 ii. The City Manager will establish a target closing balance that will fund not less than twenty -five percent (25 %) of the long- term liability for compensated absences. 4. Retiree Medical Fund Reserve. The City has established a special program whereby medical insurance costs of its retirees are partially offset by limited contributions from the City and members of the active duty workforce. In addition to covering each year's required costs on a "pay as you go' basis, a special Reserve has been established for the long -term accumulation of money to offset the unfunded liability of this program. The City contributes $20 per full -time active employee per month to this Reserve, and each full -time active employee contributes $10 per month. This Reserve is the repository for these long -term accumulation funds. Money in this Reserve is not to be used to partially offset annual costs of the program at any time until the unfunded liability of the program is fully covered by the balance in the Reserve. At that point, funds in the reserve may be depleted for use in paying annual expenses, or replenished each year if inadequate, depending on the status of the unfunded liability. The goal is for the balance in the Reserve to cover the unfunded liability on an ongoing basis. Adopted -January 24,1994 Amended - April 10, 1995 Amended - April 27,1998 Amended - March 14, 2000 Amended - May 8, 2001 Amended - April 23, 2002 Amended - June 10, 2003 Amended - XXXXX. 2004 14 • -. l 0 BUDGET ADOPTION AND ADMINISTRATION PURPOSE F -3 To establish the policy for the preparation, adoption, and administration of the City's Annual Budget. POLICY identify and separately budget and account for revenues and expenditures However, in some cases the Administrative Services Director may determine that certain funding coming in to the City is more properly reflected as abatement to an expense than as revenue; or that certain expenditures of funds are more properly reflected as abatements to revenue than as expenses The Accounting h4,aaagerDivision will keep note of all such entries and maintain the ability to separately identify the component transactions Examples of transactions where such recording is often appropriate are earnings on compensating balances, which directly offset the City's expenditures for banking services; and credit card12rocessing charges which decrease actual revenue received. B. Organization and Development of the Annual Budget. Each year the City shall prepare and adopt, by formal Resolution, an annual budget as required by the City's Charter and as provided for in the City's Budget Instructions. The Annual Budget is published in three volumes, the Resource Allocation Plan (RAP), the Budget Detail and the Capital Improvement Program (CIP). The RAP provides an overview of each department's mission, functions, statistical information, and budget. It also provides summary information regarding the Capital Improvement Program, as well as summary information for budgeted and historical overall City revenues, expenditures, and fund balances. The Budget Detail contains line by line information regarding operating expenditures for the prior year, current year and budget year. The CIP document provides a summary of current and future planned projects, basic descriptions of each project, the funding source and the scope of work to be performed. The City programs expenditures into four classifications. These are Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures. Capital Expenditures are subdivided into Capital Outlay, which is generally ;1 F -3 0 used for items of operating equipment or other purchases in excess of $500, and Capital Projects, which generally deal with Public Works related improvements for a distinct and identifiable purpose and function. Policy guidelines regarding budgeting for upkeep and improvement of City buildings are as follows. • Cleaning, maintenance, and minor repair expenses are funded within departmental Maintenance and Operations budgets. This includes janitorial, limited painting, and routine electrical, plumbing, and minor structural repairs. • Most capital eauipment outlays are also budgeted at the ins), carpet replacement, and electronic equipment. • Building expenditures that are for a more substantial and relatively infrequent purpose are funded as Capital Improvement Projects above the departmental level. These include such items as roof replacements, significant plumbing and /or electrical upaades, or remodels involving structural changes. Budgeted Expenditures for all four classifications are aligned in the Budget Documents by Department Budget Units, which usually coincide with Operating Divisions within the City's organizational structure; and, separately, by Capital Projects. Therefore within each Division Budget, there will be sections for Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Outlay. During December of each year, the Administrative Services Department shall prepare preliminary fund balance estimates for the current year and preliminary revenue estimates for the next fiscal year. In January of each year, the Administrative Services Department shall prepare a budget calendar and issue budget instructions and expenditure detail to each department for use in preparation of the next year's City budget. Included in these instructions will be budget guidelines and appropriation limits for each department. These guidelines will be developed by the Administrative Services Director and approved by the City Manager. In accordance with City Council Policy F -2 (Reserves/ Designations of Fund Balance), the status and possible changes in Reserve Accounts shall be addressed as part of this process. 2 in 9 F -3 After submission of revenue and expenditure appropriation requests by each department, the Administrative Services Department shall summarize the requests for review by the City Manager and Department Heads. After review by the City Manager and Department Heads, the Administrative Services Department shall prepare the City's proposed budget for the next fiscal year and shall submit said proposed budget to the City Council. Thereafter, the City Council shall hold as many budget study sessions as it deems necessary. Council budget study sessions shall be recorded. All proposed Council changes in the City Manager's proposed budget shall be added to a budget checklist. Subsequent to Council review and prior to its final adoption, the City Manager shall provide each Council Member with an itemized list of all proposed changes to permit a roll call vote by the City Council on each item during a Council meeting. The City Council shall hold a budget hearing and shall adopt a budget on or before June 30 as required by the City Charter. B. Administration of the Annual Budget. During the budget year, Department Heads and their designated representatives may authorize only those expenditures that are based on appropriations previously approved by City Council action, and only from accounts under their organizational responsibility. In addition, budget expenditures may only be authorized in the year appropriated. Any unexpended appropriations, except valid encumbrances, expire at fiscal year end unless specifically reappropriated by the City Council for expenditure during the new fiscal year. Department Heads are responsible for not authorizing expenditures above budget appropriations in any given expenditure classification within their purview, without additional appropriation or transfer as specified below. 1. New Appropriations. - During the Budget Year, the City Council may appropriate additional funds for special purposes by a City Council Budget Amendment. The City Manager has authority to approve requests for budget increases not to exceed $5,000 in any Budget Activity or Capital Project. (This must be specifically included in each year's Budget Resolution to remain valid.) 2. Grants & Donations. The City Manager may accept donations or grants of up to $5000 on behalf of the City and appropriate the funds for the purpose intended. The City Council will be formally notified of such actions on a quarterly basis by way of the City Manager newsletter to the • 3 F -3 City Council. (This provision must be specifically included in each year's Budget Resolution to remain valid.) Additionally, grant appropriations approved by City Council may be carried forward to the following fiscal year(s) as long as the grant terms remain valid, the expenditures are consistent with the previous Council authorization, and the funds would otherwise need to be returned to the granting or donor agency. Grant contracts and restricted donations in excess of $5000 must be specifically approved by the City Council. —Often such a grant is approved in advance of receipt by the City Council, but the funds are not appropriated to carry out the grant at that time. In such cases, the City Manager may appropriate the funds when they are received, provided the expenditures clearly meet the amount, terms, nature and intent of the grant or donation previously approved by City Council. 3. Assessment District Appropriation. Assessment district projects are typically funded by property owner contributions and bond financing secured by property assessments. City staff will initially seek appropriation to advance City resources for the assessment engineering and the design work related to a proposed assessment district. Since the City's advance is at risk until a district is formed at a public hearing the appropriation related to advanced resources shall be subject to the normal budget policies. However, once the district has been formed at a public hearing, the City Council will adopt a "project- length" budget for the district and City staff will be allowed to roll the appropriations forward into future fiscal years without rebudgeting the project through the formal CIP process. When assessment bonds are issued to finance the improvements, the bond issuance costs are estimated at the maximum amount that would be required to complete the improvements because it is not known how many property owners will opt to 1aythe assessment in full during the cash collection period. Finance staff will also have the authority to reduce Council appropriations (related to bond issuance costs) after bonds are resized and sold F -3 34. Transfers. During the fiscal year, actual expenditures may exceed budget appropriations for specific expenditure line items within departmental budgets. If a total departmental budget, within a specific Classification, is not exceeded, the Administrative Services Director has the authority to transfer funds within that Classification and Department, to make the most efficient use of funds appropriated by the City Council. (Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures are the City s four Classifications.) 45. Realignments. Further, funds may be realigned between one Department Budget Activity and another, within the same Classification, with City Manager approval. For example, if a Fire Department function and the employee who accomplishes it are replaced by a slightly different function assigned to the Police Department, the City Manager may authorize the transfer of appropriate funds to support this function. 56. Reprogramming. Any reprogramming of funds among the four Classifications (Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures) within a given fund requires the City Manager's approval. Any budget revision that changes the total amount budgeted for any fund (other than the minor provisions contained in paragraphs B.I. and B.6.b.) must be approved by the City Council. 67. Capital Projects. The Department Head having primary responsibility for a Capital Project (usually the Public Works Director) is authorized to encumber and approve subsequent expenditure of City funds for Capital Projects. However, contracts in excess of $30,000 require specific City Council authorization at the time of contract award. In addition, any contracts not of format and wording already approved by the City Attorney require specific City Attorney review and approval prior to contract award. Once a contract has been awarded, change orders may be approved by the Public Works Director, or other Department Head having responsibility for the Project, so long as the net total amount committed to the Project remains below 110 percent of the original contract award amount; and so long as the original amount appropriated for the Project by City Council is not exceeded. 0 5 F -3 Change orders exceeding the above thresholds may be approved by the City Manager as follows: a. Total spending for any single contract may not exceed 125 percent of the original contract award amount without City Council approval. -.In certain situations the Public Works Director and the City Manager may determine that a change order exceeding this 125 percent threshold is needed, and that the timing is such that a work stoppage or other undesirable consequence will result if approval of the change is delayed until the next City Council meeting. In those instances, the City Manager may approve a change up to 150 percent of the original amount. However, the Ci Manager will notify all City Council Members individually this situation develops, and if there are any objections to the increase, a special meeting of the City Council will be called to address the issue. b. The total amount authorized for a capital improvement project may be increased by transferring funds from one Project to another or by reprogramming funds from any of the other three classifications (see B.5), so long as the new total does not exceed 110 percent of the original amount appropriated by Council. C. In the event that the transfer or reprogramming action in B.6.a. or B.6.b. above would result in a material reduction in the scope of the capital project or other City activity from which funds are to be withdrawn, City Council authorization is required. For example, the movement of five percent (5 %) of the funding from one large project to another large project of the same general category could be approved by the City Manager, whereas the elimination or significant reduction of two small, unrelated projects to provide funds for a five percent (5 %) increase in a much larger project would require City Council approval. In all instances, notification of any changes to capital project contract amount or budget authority must be communicated to the Administrative Services Director. All unexpended and unencumbered capital projects will be canceled on June 30 of each fiscal year. The appropriation balance of these canceled 6 0 F -3 projects will be recorded in the Reserve for Capital Improvements or another appropriate Reserve Account by the Administrative Services Director at fiscal year end (see also paragraph C.2. below). 78. Reserves. Funds from unappropriated contingency reserves may be transferred to active Classification accounts only by City Council Budget Amendment. C. Additional City Council, City Manager, and Administrative Services Director Responsibilities. The Administrative Services Director is responsible for checking purchase requests against availability of funds and authorization as per the approved Budget. The City Manager is responsible for approving expenditures which do not conform to the approved Budget, but which fall within the exceptions noted in this policy statement. It is the responsibility of the City Manager to administer the City's budget within the framework of policy and appropriation as approved by the City Council. 1. Special City Council Expenditure Approval. Once the final Budget has been approved by the City Council, specific City Council approval to make expenditures consistent with the Budget will not be required, with two exceptions (see also Purchasing and Accounts Payable Procedures): a. Capital Projects in excess of $30,000. b. Consultant Contracts in excess of $30,000. All other budget administration actions, including the routine filling of vacancies in staff positions authorized within the Budget, will not require further City Council approval. However, new positions and other new expenditures do require City Council approval, and the City Council and City Manager reserve the right to impose any special fiscal control measures, including a personnel hiring freeze, and other spending controls, whenever circumstances warrant. Since the annual Budget is approved by formal Resolution, a request by a City Council Member for review of a portion or portions of the Budget, with a view toward changing amounts appropriated or the purposes for which they were appropriated, requires a majority vote of the City Council. 2. At fiscal year end, the Administrative Services Director is authorized to realign, reprogram, and /or transfer money among accounts within each Fund in order to close the books of accounts of the City of Newport Beach 7 F -3 in accordance with generally accepted governmental accounting principles as established by the Government Accounting Standards Board, Government Finance Officers Association, and other appropriate accounting or auditing pronouncements. Any net shortage within a Fund will be recorded as a decrease in Fund Balance and reported to the City Council. Any net excess will be recorded as an increase to one or more appropriate Reserve Accounts as recommended by the Administrative Services Director and approved by the City Manager. (Information regarding appropriation of Funds from the Reserve Accounts is contained in City Council Policy F -2.) Adopted - January 24,1994 Amended - February 27,1995 Corrected - February 26, 1996 Amended - May 13,1996 Amended - May 26,1998 Amended - August 8, 2000 Amended - May 8, 2001 Amended - April 23, 2002 Amended - April 8, 2003 Amended - XXXXX, 2004 Formerly F -10, F -11, F -12, and F -21 NEW OR EXPANDED REVENUE MEASURES PURPOSE 1951 In order that budget preparation may proceed on an orderly basis with adequate time given to consideration of all matters, and in order to establish a basis for staff recommendations on revenue matters, the following policies are established. A. Revenue measure changes may be processed at any time during the entire fiscal year. However, the normal procedure will be to introduce them at the outset of the of active budget preparation process. Changes should ordinarily become effective at the start of the new fiscal year. B. Special services, which can be identified with the recipients, will be self - supported from service fees to the maximum extent possible. Service fees shall be established in the Master Fee Schedule in compliance with applicable State law, and shall be periodically reviewed for compliance with applicable State law. C. Every reasonable effort will be made to establish revenue measures which will cause the transients and recreation visitors to Newport Beach to carry a fair portion of the expenses incurred by the City as a result of their use of public facilities. D. At the outset of the budget cycle, and when requested by the Administrative Services Director, each department shall provide the Administrative Services Department a listing of the fees imposed by department. This listing shall identify the estimated costs to the City in providing the product or service associated with each fee as well as any recommended revision in the fee. E. The Administrative Services Department, with the assistance of the initiating department, shall present for City Council review any new or revised revenue measures. The Administrative Services Department shall endeavor to consult with private individuals, business groups and individual business persons on the economic impact any recommended revenue measure changes may have on them, including but not limited to the City's Economic Development Committee and the Newport Harbor Area Chamber of Commerce. Their response, the estimated costs to the City in providing the product or service and the recommended revision to the revenue measure shall be included in the information forwarded to the City Council. 1 F-4 • F. Whenever possible, any revenue measure that requires a public hearing will be held in conjunction with the public hearing on the proposed budget. Adopted - August 26,1968 Reaffirmed - November 11, 1974 Reaffirmed - November 12,1968 Amended - January 24,1994 Reaffirmed - March 9,1970 Amended - February 27,1995 Reaffirmed - February 14,1972 Corrected - February 26,1996 Reaffirmed - December 10, 1973 Amended - May 26,1998 Amended - May 8, 2001 Amended - XXXXX, 2004 Formerly F -13 0 0 0 F F -11 ACQUISITION, CUSTODY, AND DISPOSAL OF CONTROLLED PROPERTY PURPOSE To set forth the City's policy concerning establishment of procedures and assignment of responsibilities regarding acquisition, custody, and disposal of controlled property. The primary focus of this policy, and the procedures to which it refers, is security of the City's property and equipment. 1000101111.301 Controlled Property is defined as property having an initial value greater than $500, with two exceptions. At the discretion of the City Manager or a Department Head, individual items of City property of less than $500 value may be designated as controlled property. This should be done with items especially subject to theft or misuse. Conversely, major fixed assets with no potential for theft, such as buildings, land, water and sewer lines, and other assets affixed to the earth are exempted from some aspects of this policy, such as custody control. For a discussion of the distinction between "end items' of equipment, which are subject to property control procedures, and components of that equipment, which require a different level of control, see the City's Property Control Procedures. PROPERTY CONTROL RESPONSIBILITIES The Administrative Services Director shall establish and maintain citywide property control and disposal procedures. However, basic accountability for City property, along with the responsibility for maintaining appropriate day to day measures to keep it reasonably secure, lies with the Department Head whose budget appropriation was used for original procurement of the property (unless transferred to another Department). Items designated to be included in the property control system will be entered into the system at the time they are acquired and removed from the system when they are disposed. Custody of assets will be established to the Department Head level. Department Heads may establish sub custody to their Divisions, or other subordinate levels within their Departments, if they desire. Department Heads must advise the Administrative Services Director of any transfers of property between custodians, or of any other adjustments or realignments to be effected. l F -11 An inventory of property control items will be conducted at least annually by the custodians (Department Heads), at the direction of the Administrative Services Director. A report of this inventory will be prepared by the Administrative Services Director and submitted to the City Manager. The Administrative Services Director will specifically report any material discrepancies (such as missing items) arising from these inventories, and recommend appropriate action in each case. The City Manager will in turn advise the City Council on the completion of each inventory and of any specific items deemed appropriate including the identification of any theft or missing property. In the event any item of value greater than $5000 is missing as a result of misappropriation or other illegal activity, or without adequate explanation, the City Council will be so informed. DISPOSAL Property and equipment being removed from City Service by Departments will be turned over to the Administrative Services Director (Warehouse Manager), who will arrange for proper disposal and removal from the property control system. City property shall be disposed of in a manner that results in the greatest financial advantage to the City. For items of relatively significant value, this usually means a competitive bid process. For items of no value, this usually means least -cost disposal. Donations made by the City must be approved by the City Council and whenever possible, local charities and homeowners associations will be given first choice. The City Manager has the authority to waive Council approval for surplus property donation based on recommendation by the Administrative Services Director if the estimated total value of the surplus property is less than $2500 and if he deems the donation is in the best interest of the City. Specific procedures for disposal of property are contained in the City's Property Control Procedures. Controlled Property procured with City funds and authorized for use off -site by designated individuals must be returned to the City Manager or Administrative Services Director in the event of retirement, termination or reassignment, or purchased from the City at the current value of the equipment. Adopted - January 24,1994 Corrected - February 26, 1996 Amended - August 12,1996 Amended - April 23, 2002 V • 2 9 F -13 DISTRIBUTION OF PUBLIC INFORMATION IN MUNICIPAL SERVICES STATEMENTS AND BUSINESS LICENSE RENEWALS PURPOSE The purpose of this Policy is to establish guidelines for the distribution of written materials with the Municipal Services Statement and Business License Tax Renewal forms. Periodically, material is distributed to residents through the Municipal Services Statement and Business License Renewal form. This material shall be approved by the Administrative Services Director using the guidelines below as criteria for approval. Material not completely consistent with the guidelines below will not be distributed with Municipal Services Statements or Business License Tax Renewal forms without specific Council authorization. All costs associated with the inclusion of such material must be paid by the department submitting the request for inclusion. Mailing may include the following: • A. Notification of schedules or procedures affecting City services. B. Information on the availability and scope of City services and facilities. C. Information concerning the functions and responsibilities of City departments and financial aspects of City operations. D. Information on municipal projects or future programs where a reaction from the community, business, or a neighborhood is desired. E. Information on recommended courses of action to protect the public or property from fire, theft, damage, and related hazards. F. Other materials which are designed to keep the public informed on the activities of its government. Mailings shall not contain information of a commercial nature, or from commercial entity. With the approval of the City Mangier, ilnoormation from community based, non- commercial organizations may be included in the Municipal Services Statement and Business License Renewal. The Drimary purpose of any such material should be to provide information of a public service nature. The material must not contain direct solicitation for contributions or promotions of events whose primary12urpose is fund raising (such as $200 per plate dinners). However, announcements of other events are generally appropriate, even if a nominal fee or "bake sale" tvve activity is an incidental 1 F -13 • part of the function. pre4e4-a All costs associated with the inclusion of such material must be paid by the non - commercial organization. The Municipal Services Statement subscribers list shall not be made available for any private or organizational use. The City Manager may authorize exceptions to this restriction. Adopted - December 9, 1968 Formerly G -2 Amended - October 25,1977 Amended - May 13,1991 Amended - January 24,1994 Amended - February 27,1995 Corrected - February 26, 1996 Amended - XXXXX, 2004 2 0 AUTHORITY TO CONTRACT FOR SERVICES PURPOSE F -14 To set forth the City's policy establishing authority for committing City funds for Service Contracts. LIMITATION Contracts for services are distinct from contracts for procurement of specific material items. If the only purpose of a contract is for the City to obtain material or equipment (to include related maintenance contracts), guidelines contained in the City's Purchasing Procedures will be followed. The policy contained herein refers only to awarding contracts for services, such as audit services, public works projects, and custodial services. AUTHORITY Department Heads are authorized to award contracts for services of less than $30,000 without further review, as long as the services were approved by the City Council as part of the annual budget process. This authority may not be delegated below the Deputy Department Head level. Contracts in excess of $30,000; contracts for services not specified in the approved budget; and contracts for services which exceed the amount authorized by the City Council in the Budget must be submitted to the City Council for specific approval before the contract is awarded. T~ aaa�RUitieF,4The City l Attorney will review all specific ontract documents prior to contract award. City Purchase Orders are not required for service contracts. A copy of the Contract shall be submitted directly to Accounts Payable (^ ee un int Fiscal Services Manager), where it will be used as an encumbering document. Thereafter, progress payments will be handled in the same manner as progress payments on a Purchase Order, i.e. invoices will be approved by the Department Head and submitted to Accounts Payable for payment. It is recognized that by their nature, service contracts cannot always be awarded as a result of a competitive bid process. However, competitive bids should be obtained whenever possible before resorting to negotiated awards. Professional services shall be obtained by a qualifications based selection process pursuant to State law. 1 • ACKERMAN TRUST PURPOSE F -16 To establish City policy for the distribution of the proceeds of the income from the Ackerman Property. POLICY Per the terms of the Carl Ackerman Family Trust, the net sales proceeds of 4te lease revenue for-of certain property in McFadden Square is to bewere,z . divided between the University of California, Irvine, and the City of Newport Beach. The proceeds are were to43 -t =distributed as follows: Sixty (60) percent of the proceeds are to b were distributed to the University of California, Irvine, to be used for scholarship funding for needy qualified students. Forty (40) percent of the proceeds ate weare to be distributed to the City of Newport Beach to be used in the following manner: Seventy -five (75) percent of the City's share .1:<, }!..h,.,_;.., , -to create a permanent endowment to provide a perpetual annuitv that can be used to acquire high -tech library equipment. Twenty -five (25) percent of the City's share F =;tefl- >,.,: create a permanent endowment to provide a perpetual annuit3L f fund scholarshipssQi -b for needy qualified students. This scholarship fund shall be open to _r;_„ . ti.? ,.,,iu, <i:..;•::. ;;, - ;r. :. •r: .... .................. __.......... _._.._..._........_.._.- 5:.tch, 11W to i children of City employees t =etri ti eti-i n a �- t�4a�s<itt -l�a�� t. The following procedures are established to meet the terms of the Ackerman Trust. The City shall deposit its share of the -all proceeds from the lease sale of Ackerman property into art- expeftdab - tPermanent Fund. Within that fund, the Cite shall create separate permanent endowment reserves to account for the principal share of both the high -tech library equipment (S579,586) reserve and the scholarship reserve (S193,195). The City shall also create similar reserves to track the expendable portion of each reset t =cc:ndota>rnent. • 1 o sustain tht economic vitality of the dc�i�atcd Ackerman annuities, the City ghall c01ttibute _a__pirtion_of_tltis fund's interest earnilc *.S to the - permanent cndcmgn ilt resent. Jhe anneal contribtition to the pe.rnllnent endownunts shall, he an amount equal. to a fire -bear moving averat e of the Los Ange.105, • Riverside, and Orange County c013samer price index (071) for December rnulti})lied times the ccn-rent permanent endowmalt balance. L-lotivever, the City shall not be obligated to make contributions to permanent endowments in excess Of the atrnnal recorded investtnent earnings of that .fund. During the budget process each year, the Administrative Services Director will recotmend to the City Manager the maximum amount that can appropriated for the coming budget year considering the minimum permanent endowment levels and future economic vitalijy of the program. In order to reduce the impact that market fluctuations might have on the available annuity, the maximum amount for appropriation will be calculated by multiplying the unspent resources (expendable and nonexpendable) in each category by a the five -year moving average of IALc previous years' investment returns, less CPL The City Manager may recommend an expci #iii.u.rr._ a}?]; ?ro,} 1_iaticm above %or below thy.: max33nuiii annual approprt.ltlon ((..!.. ". Saving %.-y ral vears worth oi: allocations for a lan,,c capital Lw-chasct) but in ,110 cash shall, the City expc:,nd any c i�n,poncr }t_ if tl +c_.}'erm ti }crlt_Qndow�nent, Periodic pa4me -nis - sl'lall ° _ {he;' • sixty isrttr iii afarnrTlz =o n{ ia3— I:he— attr<�rra #— r>ErAj } eret= r {af -4ke �1��E(?(: i;'..T- #'- i?i�iPd?t= -1?a�w iii<:' N-: �-•}# ia�i-#? c'- li3tic�li'-- f+'ri- }:j? -ts }.i 5- C? Y�3�. 'i�xa#31{'.- ti�tSt- i�il�ci. -t4? 4ii ?Ri1 ?J4 t'.� ?{'iu-e3f It shall be at the City's discretion what high tech library equipment to acquire, and how to award the scholarship funds to needy qualified students. Adopted - January 24,1994 Amended - May S, 2001 Amended - XXXX, 2004 0 r� U VOICE -MAIL GENERAL POLICY PURPOSE F -19 To establish procedures for City departments and individual employees using electronic voice -mail to answer incoming telephone calls. BACKGROUND As a service organization, the City must be responsive to the needs and requests of its residents and customers. The telephone is often the first, and sometimes the only contact members of the public have with the City. It is important that telephone inquiries be handled promptly and courteously by City staff. However, the City of Newport Beach has :educed the size of toe Nverk force and is striving to increase its effectiveness to accommodate ever - increasing service demands with fewer City employees. Voice -mail and automated telephony applications can increase efficiency and effectiveness by eliminating "telephone tag," busy signals and unanswered lines, and can provide speedier delivery of routine information. • Unfortunately, sometimes voice -mail can be impersonal, and at times frustrating for the caller, especially if the system has long complicated messages and unending loops. This policy sets forth the procedures and guidelines to avoid these common voice -mail problems. DEFINITIONS A. Voice -Mail. An electronic system to receive, send, transfer or store telephone calls using individual "mail boxes" for each employee or department. B. n anee Gall n reeessine. A device F F ca n individual � a� n � � c speeial r i-Semiatiell- specified . DB. Automated Attendant. A deviee Nvhieh answef:s ealls with a gfeeting and .. of eheic-es.An automated voice mail application that — routes call to personnel within a department or provides scripted information in the absence of a staffed receptionist position. 1 F -19 s C. Interactive Voice Response (IVR). An integrated computer controlled, unattended voice application capable of providing valuable information based on caller input 24 hours per day, seven days per week. Types of information currently available include checking plan check staus, scheduling permit inspections, and pang bills and fees using a credit card. D. Automated Citizens Information Svstem. An unattended IVR based telenhon application designed to provide primarily static information to callers as well as to staff members. Pre - recorded information inclu4eincludes answers to most freauently asked questions (FAO's) and offers FAX back on demand functionality. GUIDELINES Use of the voice -mail system by City employees shall be governed by the following guidelines: 0 A. A44-Most City_ department and division general information- telephone lines shall should be answered by a receptionist during City business hours. All City depar1=m_P_n.tand division general ^Qermation Imes shall always be answered by a " reeeptionist. Only uUnder unusual circumstancesne condition shall these lines be routed through the voice -mail auto attendant applic atienapplicationsystem. If the assigned receptionist is unavailable at any time during City operating hours, the department shall make an effort to assign a back -up receptionist to answer incoming calls. In the event that this is not possible, calls may be routed to the voice -mail auto at#exantattendant application. The application will route callers to the appropriate person and will further provide an option for the caller to be directed to a live answering person by selecting "9". hlcemingEal!T All exceptions to this policy shall be approved by the City Manager or Department hHead prior to implementation. Q&rrent_eExceptions to this policy are the following: 2 s F -19 1. _ 1.4or ..atien Line. The i4ermatien Line uses an deviee whieh previd.s pre FeEeMed .:fermatien on r-:,.,.� event; And serviees. The ealler also has the eptien to speak with a City ..1,.ye if desired. 2. Call C,.,,....,,cer System. Some City phone lines, suEh as the Coral Library, experieREe a high volume of Ealls during Eertain times of the day. A eall sequen er gaexes ineentin�s until an epefater- isa-, -' � 1. ACIS. -The Automated Citizens Information System provides unattended pre- recorded information 24x7 and is updated when necessary by the Telecommunications Division and /or the responsible Department or Division. 2. IVR. —The Interactive Voice RepenseResponse system — provides unattended access to applications such as plan check and permits status, inspection scheduling, account balances, and facilitates credit card payments for fees and services. • B. Calls transferred to or made directly to an employee's direct phone line shall be answered promptly, if at all possible. Employees shall attempt to answer phone calls as they arrive and shall not use voice -mail to screen calls. Employees otherwise engaged in meetings or priority work may use voice -mail to answer calls, with the intent to return the calls as soon as possible. i ­7 F -19 0 C. City ployees shall retrieve voice -mail messages frequently and promptly. Employees shall listen to their voice -mail messages at regular intervals throughout the workday. Remote retrieval when an employee is outside City Hall is also possible and shall be used when out of the office for extended time periods. If an employee is traveling or on leave, he /she shall record a voice -mail message informing the caller when the employee will return to work. D. A caller shall not be transferred to a voice -mail box without his /her specific consent. Receptionists answering general City phone lines shall not automatically transfer callers to an individual's voice -mail box without the caller's consent. No individual employee telephone extensions shall automatically be forwarded to an individual's mailbox, except as provided for under Guideline A#3 above. Callers for an unavailable employee shall be asked if they want to leave a message with the person answering the call or if they want to be connected to that employee's voice -mail message box. Callers asking f ...- ee fie information F__1 LJ E. All callers transferred to City voice -mail shall have the option of transferring to a live operator at any time during the voice -mail message. All voice -mail messages should end with the following option: "If you need to speak to someone immediately, please press 'QV." IMPLEMENTATION AND OPERATION Overall control and administration of the system is the responsibility of the Telecommunications Division of the Administrative Services Department. The Telecommunications Division shall assist each department with the design and installation of their individual programs, consistent with the following: A. Each department shall develop ap implementation plans including assignment of mailboxes, call routing and sequencing, message scripting and employee training for review and approval by the Telecommunications Division. Plans shall be phased in during a test period of at least one month. W] rp 9 F -19 B. All messages on any voice -mail device shall be scripted consistent with attached examples. Whenever possible, messages will be recorded by a selected narrator with special voice skills. DC. All employees shall receive both initial and on -going training in the use of voice - mail. ED. The Telecommunications Division shall produce periodic management and usage reports on the use of the system, including a summary of any complaints or problems. FE. Additions, deletions and changes to the system must be requested by department directors or their designee and approved by the Telecommunications Division. However, individual mailbox messages may be altered in accord with the attached examples. GF. The voice -mail system is the property of the City and is to be used only for City business. As such, all voice mail is subject to monitoring and discovery. [Attachment - Examples of Voice Mailbox Greetings] Adopted - April 25,1994 Amended - February 26,1996 Amended - June 9,1997 Formerly M -7 • 60q F -19 • ATTACHMENT CITY OF NEWPORT BEACH VOICE PROCESSING POLICIES AND PROCEDURES ACCEPTABLE EXAMPLES OF VOICE MAILBOX GREETINGS A. For in -house office personnel to be used as a standard greeting: "Hello, this is John Doe. Today is Thursday, July 2nd. I'm in the office but away from my desk right now, and will be in meetings after 2 o'clock. At the tone, please leave a detailed message and your phone number, and I'll return your call as soon as possible. if you need to speak to someone immediately, please press O40 '. Thank you." A shorter version for the same may be "Hello, this is John Doe. 1 am currently away from my desk or on the phone. Please leave your name, number and a detailed message, and 1 will get back to you as quickly as possible. if you need to speak with someone immediately, please press '8'0'. Thank you." • B. For field personnel or those frequently out of their office: "Hello, this is John Doe. I am currently out in the field (or out of my office) right now. 1 will be checking for messages regularlyg and I would appreciate it if you would- Please leave your name, number and a detailed message se -and 1 eafi-will get back to you as quickly as possible. if you need to speak to someone immediately, please press'9 =0'. Thank you." C. For personnel on vacation: "Hello, this is John Doe and 1 will be on vacation from August 1st through August 15th. 1 will not be checking my messages until 1 return. For immediate assistance, please press '9=0'. Thank you." • I. 0 EMPLOYEE OF THE YEAR (THE DOROTHY PALEN AWARD) PURPOSE F -22 To establish the award criteria and selection process for the Dorothy Palen Avarid-, or City Employee of the Year award. BACKGROUND Dorothy Palen retired from the City of Newport Beach Finance Department in 1993, after 47 years of dedicated service. Every year since her retirement, a Newport Beach City employee who best exemplifies the characteristics of Dorothy Palen has been selected as the Employee of the Year. This City Council policy specifies the award criteria and selection process to insure a deserving employee is selected as the Employee of the Year. PROCEDURE A Between n,.,„ bee ,s' and November 30 Eeach year, all City employees may will have an opportunity to- submit a nomination to the Human Resources Marta rePDirector for Employee of the Year, . All nominations must include a brief justification describing how the nominee specifically meets the established award criteria on a form available Frei+ -from the Human Resources Department. B. A Committee composed of the Human Resources Manager-Director, two Department Directors, and two other employees selected by the City Manager, will review the nominations and narrow the field of candidates to five employees. The committee shall ideatifyVecify the reasons for the its recommendations. C. The names of the finalists with a written justification for selection shall be presented to the City's senior management staff at- the first - meter's staff meeting in january for final selection. D. The selected employee shall be recognized at the annual Employees Awards Breakfast. Dinner ^ ^a ^- . ^ -a ^a The employee will be presented a plaque commemorating his /her recognition as Employee of the Year. A press release shall indieate the award and the reaseft why they were selected for the • 1 F -22 19 pfestigieus honer will be initiated which describes the award and honors the selected employee. 0 2 • 0 F -22 E. To be nominated for the award, the recommended employee should be a role model for all City employees. The Award Committee's evaluation will be based upon work performed and /or organizational contributions made during the current calendar year. F. Specific emits award criteria which should be considered during the selection process are: Initiative - The nominee is a self- starter, willing to originate action without instruction, and to introduce new ideas and waysmethods to provide public services. Integrity - The nominee steadfastly adheres to an ethical code that reflects the values of the organization. Dependability - The nominee is reliable and trustworthy; a dependable person that encourages confidence about his/her support and follow - through. ud ent - The nominee is able to perceive, distinguish, evaluate, and form sound opinions after due consideration and deliberation. Cooperation - The nominee is able to accomplish his /her job tasks while establishing cooperative working relationships with other City employees and the public, based on sensitivity to the needs of others and concern for the common good. Adopted - January, 21, 1994 Amended - February 27,1995 Amended - February 24,1997 Amended - March 22,1999 Formerly J -4 • 3 F -23 F -23 USE OF CITY TELEPHONES AND CALLING CARDS CELLULAR PHONES PURPOSE To establish the policy for the use of City telephones and calling eardscellular phones. POLICY City regular and cellular telephones are intended to be used for business only. However, the Employee Policy Manual establishes provisions for limited personal use of City telephones as follows: " Emplovees are permitted to make or accept Dersonal calls on a limited basis durin their Workday provided the conversations do not prevent the Employee from timely performing his /her normal duties. Employees shall use their best efforts to keep personal telephone calls to a minimum during the Workday and to make personal calls during their meal period(s) or on break(s). Employees shall reimburse the City for the cost of all long distance personal calls and the cost of personal cellular phone calls." Some cellular hone calling plans, especially for Employees involved in the EOC, may provide for no cost for phone use within certain parameters. In this situation, if there is no charge to the City no reimbursement for personal calls is required. However, the guidelines concerning limited use as set forth in the paragraph above are still germane. if telephone crep e the Qte,.—aeil „War personal eall are made eit tions Pivisien to telephene to their department fer- the eharge eff:eialCity crem then €€iee. Charging eal?s utility= shall bed ^.al r: s4hile assay sueh call business. The department direeter -1 -nited to the t4ese eu. may autherize their department. if use of ealling is to the ear" it isz'�e ethers sdithin personal the department direeter to eall eftarged ealllngeard, the City is ce: al responsibility e€ mare sure reincibursed City regular and cellular telephones are intended to be used for business only. However, the Employee Policy Manual establishes provisions for limited personal use of City telephones as follows: " Emplovees are permitted to make or accept Dersonal calls on a limited basis durin their Workday provided the conversations do not prevent the Employee from timely performing his /her normal duties. Employees shall use their best efforts to keep personal telephone calls to a minimum during the Workday and to make personal calls during their meal period(s) or on break(s). Employees shall reimburse the City for the cost of all long distance personal calls and the cost of personal cellular phone calls." Some cellular hone calling plans, especially for Employees involved in the EOC, may provide for no cost for phone use within certain parameters. In this situation, if there is no charge to the City no reimbursement for personal calls is required. However, the guidelines concerning limited use as set forth in the paragraph above are still germane. if telephone crep e the Qte,.—aeil „War personal eall are made eit telephones, the the Gitv fer- the ealler should make arraneement-s te reimburse eest Off these all. One this i •c to if late hey `M e*egi3fie 1 e rule migl, ed fk J Y h a,...ded 1....,_ 1 telephone a c it . to i fer them n.+ether ma, ,lair .a�i,ixo �.= «em- ,,.;�.,...,. wer��::�F :�oa�s. of their ouf _ :�� 9 • • F -23 usage is fer 's r-OC tea-4. Members e )(eeition on i9ersenal eellular . are . . -on to ,— regular ,. ,,1 . , . the Cky for the I-.- the railer should make arrangements rei-nburse eest of of the E^C team that are required a carry a Bell �la unit are allewed to make Igersenal calls. exception telephone their family Fule an empleyee required to infef-i them their werk heurs. ealls based on the ell..l. .-.l. issued by the ciWs T-eleeenununiEatieRs of extended werking Divisien, 2t by the n a, ..a....a:. c Department d4 erder of e s et TL i t from t he E ams� n= personal � epl�realls henes, are . . -on to ,— regular ,. ,,1 . , . the Cky for the I-.- the railer should make arrangements rei-nburse eest of these One to this is, if is to late, calls. exception telephone their family Fule an empleyee required to infef-i them their werk heurs. may of extended werking if an empleyee 4as to make or aeeept an emergency telephone call from a City telephone, they sheuld likewise make arrangements to reimb n!se the City for the eost „c .accc czallrs. The Telecommunications Division will make available to each department a listing of the telephone calls charged to each telephone within each department. Adopted - January 24,1994 Amended - March 22,1999 Amended - XXXXX, 2004 Formerly J -5 • 2 F -24 POLICY FOR COLLECTIONS AND WRITE -OFF OF ACCOUNTS RECEIVABLE Guided by the policy provided herein, the Administrative Services Director shall establish specific procedures and dollar thresholds regarding collections and the write -off of accounts receivable to the City. From an accounting perspective, aging accounts receivable should generally be written off during the fiscal year in which the account is no longer expected to be collectable. However, the decision regarding actual collection efforts is separate. (Subsequent collection of an account previously written -off is treated as new revenue.) The Administrative Services Director or his designee shall establish and maintain consistent working guidelines for the point at which collection efforts will no longer be feasible or cost effective. Notwithstanding these guidelines, exceptions will sometimes be appropriate on case -by -case basis. Each type of account and each account may have specific legal or administrative nuances that may reasonably impact expectation of collection. The following guidelines should be applied in regarding aging accounts receivable: • Aging accounts receivables should be reviewed monthly to encourage timely payment. Dunning notices should be mailed and penalties should be imposed where appropriate. • The estimated cost of collection should not exceed the value of the delinquent account. Delinquent accounts over the current deemed minimum account balance threshold ($25.00 in 2004) and 90 days past due should be promptly sent for collection. The reasonable cost of any contract collection efforts should be added to the delinquent balance but the collection fee should not be recognized as revenue until the amount is received. • Sometimes it may not be readily evident and /or practical to determine the precise time a receivable becomes uncollectible on an individual account basis. On an interim basis, the Revenue Division may elect to estimate and maintain an allowance for uncollectible accounts as a contra asset account as a best estimate of the value of uncollectible accounts that still remain on the City's balance sheets. • Receivables in general, should be substantiated by documentation evidencing the amount and validity of the receivable. However, further written evidence should be maintained by the Revenue Division to substantiate the probable collection for any account deemed collectible over three years old. To the maximum practical extent, consistent application of policy in this area is the goal. However, circumstances vary, and prudent judgment by staff is relied upon in making exceptions. Adopted - XXXXX, 2004 0 G -6 MAINTENANCE AND PLANTING OF PARKWAY TREES The City Council is vitally interested in beautification of City parkways. Public cooperation in helping to develop and maintain healthy and attractive trees is encouraged. MAINTENANCE OF PARKWAY TREES The General Services Department will trim the parkway trees on a rotation schedule. An effort will be made to trim the parkway trees on less than a three - year cycle. If the rotation trimming is completed in less than three years, more frequent trimming will be dene performed on certain trees and in view areas. Public safety issues such as low branches and heavy foliage will be given priority over view trimming. An effort will be made to trim parkway trees located in heavy summer traffic areas during the fall and winter months. The trimming schedule will be altered to avoid trimming streets with flowering street trees during their blooming time. This will apply to streets having a large number of flowering trees, not to one or two trees on a street. Annual trimming of certain species of trees prone to wind dama.>e will be done prior to the v,7inter season. TREE LIST The Parks, Beaches and Recreation Commission has adopted an official street tree list which will be used by the General Services Department to determine species for planning purposes in all new subdivisions and replacement in established parkways. The list, which is entitled Street Tree Designation List, will be reviewed on an annual basis by the General Services Department staff with any recommendations forwarded to the Parks, Beaches and Recreation Commission. STANDARDS AND SPECIFICATIONS FOR PLANTING PARKWAY TREES A. General Requirements 1. 72 -hour notification shall be given to the General Services Department staff prior to the initial installation of parkway trees for approval of species, material quality, and planting supervision. 24 -hour notice shall be given prior to all subsequent inspections as required. 2. Relative position of parkway trees is subject to approval by the General Services Department, and any tree not properly placed will be relocated at no cost to the City. In the interest of public safety, trees shall be 121aiited not less than: 0 11 G -6 a. 25 feet back of beginning of curb returns at intersections. b. 10 feet from lamp standards. C. 10 feet from fire hydrants. d. 10 feet from service walks or driveways. e. 10 feet from meters and sewers. f. 25 feet from stop signs. 3. Trees shall be a minimum container size of " 2tbox,, ••f4ess- � avai,l-wity necessitates the planting of nn boxed specimens. a. Condition: Plants shall be symmetrical, typical for variety and species, healthy, vigorous, free from plant disease, insect pests and shall have healthy, normal root system free from being root bound. Trees shall not be pruned nor topped prior to delivery. • b. Inspection: All plant material shall be subject to inspection and approval by the General Services Department staff prior to planting. The City has the right to reject any item offered. 4. Soil Analysis Requirement for Land Developers Developers may be required to submit ha ve a composite soil analysis ann ?leted made by a bona fide soil testing laboratory of soil to receive parkway trees at no cost to the City. The location and number of soil samples shall be determined by the City. Analysis shall include fertility level and organic content of the samples take. A copy of the test results shall be forwarded directly to the General Services Department staff a minimum of 60 days prior to the scheduled planting of parkway trees. PARKWAY TREE PLANTING A. All tree lanting pits shall be dug with the bottom level, width equal to two times the diameter of the ball, and the depth 11/2 times the height of the container from which the tree is planted. B. Where land developers are required to provide soil analysis, the prepared soil backfill shall be based on test results. (j G -6 C. When soil analysis is not a requirement, native soil with a commercial • fertilizer approved by the General Services Department staff shall be used for backfill. D. Set plants in center of pit, in vertical position, so that crown of ball will be level with finish grade after allowing for watering and settling and shall bear the same relationship to finish grade after allowing for watering and settling and shall bear the same relationship to finish grade that it did to soil surface in its container. E. Prepare a depressed water basin capable of holding 10 gallons of water. Water shall be applied in that quantity at time of planting in a fashion that insures wetting the entire root ball and that all air pockets are removed. F. If houses are not occupied, trees shall be watered one week later. Thereafter, watering shall be done at week intervals by the developer for a period of one year or until homes are occupied. G. Each tree must be properly supported by one Reddy Stake System two r ..a,.,._ ele pine stakes- or other material approved by the General Services Department staff. Stakes shall be a minimum of ei& seven feet in length. Stake all trees at time of planting by placing _A stake in the prepared hole and 4rglacin�� stake as prescribed by the manufacturer.minimum of 30 inehe =:ati ,2 to soil. H. All trees shall be secured to stakes with a eieek-tie UV- resistant vinvl tubing. A root barrier approved by the General Services Department staff shall be installed. GUARANTEES A. 36" (or alter-native 2 24" boxed trees shall be guaranteed as to growth and health for a period of ninety (90) days after final acceptance by the General Services Department staff. B. Trees that fail to grow or are injured or damaged during planting operations shall be replaced within 15 days after notification. Replacement material shall be guaranteed as specified as original guaranteed material. G -6 0 ESTABLISHED PARKWAYS Applicant must: A. Applicant must accept responsibility for watering and fertilizing new trees. B. If an applicant has questions regarding the street tree program they should contact the Urban Forester at (949) 644 -3083 or send a written request for one or more parkway trees to: Attn: Urban Forester, P. O. Box 1768, Newport Beach, California 92659 -1768. City of Newport Beach will: A. Approve species, location, and spacing of tree planting. B. Furnish, install, stake, and initially fertilize new trees (exception would be trees planted in accordance with City Code 13.09.010). C. Prune and spray tree as required. • D. Approve type of root barriers for installation. E. Assume trimming responsibilities. Adopted - November 22,1982 Amended - November 14,1983 Amended - October 22,1992 Amended -January 24,1994 Amended - July 23, 2002 Formerly I -19 .J H -1 • HARBOR PERMIT POLICY HARBOR INSTALLATIONS GENERALLY A. Shore connected piers and floats bayward of residential zoned areas shall be controlled by the Harbor Permittee. Vessels moored at residential piers shall not create a nuisance with regard to vehicle parking, vessel waste, liveaboards, or noise disturbances to adjoining residents. B. Shore connected piers and floats bayward of commercial -zoned areas may be rented. C. Only piers, floats, certain patio decks and their appurtenances shall be permitted bayward of the bulkhead. D. No private piers shall be permitted at street ends. E. In R -1 zones, only a single pier and float or slip shall be permitted bayward of each parcel or lot. DEFINITIONS A. The term "Pier" shall mean any fixed or floating structure for securing vessels, loading or unloading persons or property, or providing access to the water, and includes wharf, dock, float, or other landing facility, and dry dock. B. The "Harbor Lines" are established Bulkhead, Pierhead, and Project Lines. C. The "Bulkhead Lines," as established, shall define the limit of solid filling or solid structures. D. The " Pierhead Lines," as established, typically shall define the limit for pier and float -type structures. E. The "Project Lines' shall define the channel lines of the improvements and by the Federal Government in 1935 -36. F. The term "Liveaboard" shall mean the use or occupancy of a vessel for living quarters either permanently or on a temporary basis for a period exceeding 72 hours. 1 0 fir,, • H -1 G. The term "Standard Drawings" refers to Standard Drawings adopted by the City of Newport Beach as minimum standards of construction whenever harbor permits are required. H. The term "Design Criteria" refers to Design Criteria adopted by the City of Newport Beach as minimum standards for design whenever harbor permits are required. I. The term "Mean Low Low Water" is abbreviated, M.L.L.W., and refers to the lowest tide of the daily two -tide cycle. J. The term "Harbor Structures' refers to any pier float, piling, bulkhead, sea wall, reef, breakwater or other structure in, upon or over the waters of Newport Harbor or the Pacific Ocean or any other water where the tide ebbs and flows within the City of Newport Beach. K. The term "Harbor Permittee" refers to upland property owner or long. term • lessee immediately adjacent to water in whose name the Harbor Permit is issued. PERMITS REQUIRED FOR HARBOR STRUCTURES A. No person or agency shall build, maintain, extend or make structural alterations on any building, pier, piling, bulkhead, sea wall, reef, breakwater, or other structure in, upon or over the waters of Newport Harbor or the Pacific Ocean or any other water where the tide ebbs and flows within the City, or do any filling, excavating in said waters or ocean, without first obtaining a written "Building Permit" to do so from the City's Building Department. B. The Orange County District may do construction work or fill or dredge within Newport Harbor, or cause the same to be done, without such a permit so long as such work is done pursuant to a harbor development plan on lands not owned by the City or pursuant to a request therefore by the City Council. C. A separate permit will be required by the Harbor Resources Division for dredging. 2 e;l H -1 . GENERAL PROVISIONS FOR PERMITS FOR HARBOR STRUCTURES A. Acceptance of Provisions. It is understood and agreed by the Permittee that the doing of any work under the permit shall constitute an acceptance of all the applicable provisions of Municipal Code and City Council Harbor Permit Policies. B. Permit from Other Agencies. The party or parties to whom the permit is issued shall, whenever the same is required by law, secure the written order or consent to any work hereunder from the U.S. Corps of Engineers, California Coastal Zone Commission, or any other public body having jurisdiction, and the permit shall be suspended in operation unless and until such order or consent is obtained. C. Transferring Permit. The permit is not transferable without the written consent of the City of Newport Beach. D. Inspection. Inspection shall be done by the Building Department for conformity with the Uniform Building Code, design criteria and standard drawings for Harbor construction. 0 E. Protection of Traffic. Adequate provisions shall be made for the protection of the traveling public. Barricades shall be placed on streets with lights at night, also flagmen employed, all as may be required by the particular work in progress. The Permittee shall not attempt to forbid the full and free use by the public of all navigable waters at or adjacent to the work or structure. If the display of lights and signals on any work hereby authorized is not otherwise provided by law, such as lights and signals, as may be prescribed by Bureau of Light Houses, Department of Commerce, shall be installed and maintained at the expense of the Permittee. Structures shall be so constructed as not to obstruct, interfere with or prevent the free use of adjacent harbor structures or passage of any sidewalks, street, alley, public way or navigable channel. F. Liability for Damages. The Permittee is responsible for all liability for personal injury or property damage which may arise out of work herein permitted, or which may arise out of the use or possession of said works, and in the event any claim is made against the City of Newport Beach or any department, officer, or 3 0 H -1 employee thereof, though, by reasons of, or in connection with such work, permittee shall defend, indemnify and hold them and each of them, harmless from such claim. G. Revocation of Permit. The rights given under this permit are permissive only and the City of Newport Beach reserves full right, power and authority to revoke this permit at any time. In the event the Permittee fails to remove said works within the time specified, then the Harbor Resources Division shall have the right to immediately remove same at the cost and expense of the Permittee. H. Re airs. The Permittee shall keep the structures in good repair at all times. Failure to repair, when written notice has been given by the Harbor Resources Division, shall be cause for the revocation of the permit. I. Pollution Control. The Permittee shall maintain the area delineated on the harbor permit free and clear from beached or floating rubbish, debris or litter at all times. Adequate safeguards shall be maintained by the Permittee to avert any other type of pollution of Newport Harbor from recreational and /or commercial . use of the tidelands. Failure to comply with the provisions of this section shall be cause, after written notice has been given to the Permittee by the City, for the revocation of the permit. When unusual circumstances arise with respect to the collection of debris or litter, the City Manager may authorize by the use of City forces or by contract the removal of said debris. J. Rights to hnpose Rental or Other Charges. The approval of the foregoing permit by the City of Newport Beach shall not constitute a waiver of any rights which it may now have or hereafter have to impose rental or other charges in conjunction with the maintenance of the proposed facility and user of the same. The imposing of tidelands rental, or use, fees shall not be extended to include private residential piers and slips, constructed and used solely by the abutting uplands owner for recreational purposes, unless otherwise directed by State mandate. K. In those areas of the harbor where the piers and floats are bayward of residential zoned areas, liveaboards shall not be permitted. L. Special Event Permits. If a Harbor Permittee proposes a use of the harbor installation, other than that allowed by the Newport Beach Municipal Code or the Council Harbor Permit Policy, he /she must first obtain a "Special Event Permit" as provided by Section 510 of the Newport Beach Municipal Code. Upon issuance of the Special Event Permit, the City of Newport Beach may impose 4 H -1 • conditions on the permit to assure that the proposed use does not affect the health, safety or welfare of the residents of Newport Beach. ISSUING OF PERMITS FOR HARBOR STRUCTURES A. The Building Department is authorized to approve and issue new permits and revisions to existing permits that conform to the standard harbor drawings and the adopted Harbor Permit Policy in conjunction with plan reviews by the Harbor Resources Division. B. Prior approval, when applicable, from the California Coastal Commission and /or the U.S. Corps of Engineers will be required before issuing any permit. Application to the California Coastal Commission and /or the U.S. Corps of Engineers may be made on forms provided by those agencies. C. Prior approval of Orange County will be required when work extends over tidelands claimed by the County. D. Before issuing a Permit for any work on oceanfront beaches or for any unusual • type of harbor structure, or for a structure on which the applicant proposes a use that is not in keeping with the surrounding area, all property owners or long term lessees within 300' of the proposed work shall be notified in writing by the Harbor Resources Division of the pending application. Notice will be sent ten (10) days prior to a decision by the Harbor Resources Division, and after the Department has rendered a decision. The permit shall not be issued until the appeal period provided in Newport Beach Municipal Code Chapter 17.24 has run. E. Painting, replacement of rub -rails and work considered cosmetic in nature does not require a permit. F. Prior to the issuance of a permit, the applicant will show proof of insurance coverage as required by the Longshoremen's and Harbor Worker's Compensation Act. APPLICATION FOR HARBOR PERMITS FOR HARBOR STRUCTURES A. Applications for authority to erect, revise and do maintenance work on structures shall be submitted to the Building Department upon forms provided 5 0 j� 0 H -1 therefore. Plans showing the location, extent and character of the proposed work and required fees shall accompany the application. B. The application must be signed by the Harbor Permittee or his authorized agent. PLANS TO ACCOMPANY PERMIT APPLICATIONS A. Plans accompanying the application will form a part of the permit and must be carefully prepared in the form prescribed in the Building Department. B. Number of plans submitted shall be determined by the Building Department, depending on the nature of the work. EXPIRATION OF PERMIT A. The time limit for the completion of all work authorized by a permit shall be 180 days from date of approval. B. All permits shall expire unless the work contemplated shall have been completed within the time limit specified. C. If the work contemplated has been started and diligently prosecuted but not completed in the time limit specified, a time extension may be granted by the Building Department upon receipt of a written request from the Permittee. BOND REQUIREMENTS If the nature of the proposed work is such that if left incomplete it will create a hazard to human life or endanger adjoining property, a cash bond or surety bond satisfactory to the City Attorney in the sum of 100 percent of the estimated cost of the work will be required to guarantee the faithful performance of the proposed work. TRANSFER OF ANNUAL HARBOR PERMITS A. Permits for harbor structures are issued subject to the condition that any improvements constructed shall not be sold in whole or part, leased, or transferred, without the written consent of the City. B. Whenever a permittee sells the abutting upland property, a request shall be made to the City to transfer the permit. Forms for this purpose may be obtained 9 6 r') i H -1 . from the Harbor Resources Division. Failure to apply for a transfer within 30 days from the date that the abutting upland property changed ownership will result in an additional fee by the City. C. The Harbor Resources Division is authorized to approve transfers to the new owners or long -term lessee of the abutting upland property. D. Prior to the transfer of a Harbor Permit, all harbor structures shall be inspected for compliance with the City's minimum plumbing, electrical and structural requirements, and the conditions of the existing permit. All structural deficiencies must be corrected prior to the transfer of the permit. A fee will be charged for this inspection, established by Resolution of the City Council. DREDGING A. All dredging will require a permit from the Harbor Resources Division and may be subject to engineering approval by the Public Works Department. B. Major dredging outside the established harbor lines will require prior approval by the Harbor Resources Division and the U.S. Corps of Engineers. to C. Maintenance dredging bayward of residential and commercial property shall be the responsibility of the Harbor Permittee for the zone delineated by the bayward prolongations of upland side property lines and the U.S. Project line. FEES A. INITIAL PERMIT FEES The Harbor Resources Division may charge the fees identified in the Master Fee Schedule for initial permits and for pier fees. Initial permit fees do not include Building Department fees, but they do include Public Works Department fees. B. PIER FEES Annxal Non - commercial pier permit fees are due and payable on 1 Mare the schedule established by the Administrative Services Director in accordance with the amount stew identified in the Master Fee Schedule. 7 0 • H -1 All commercial piers over City Tide and Submerged Lands will be billed annually as follows: 1. Permittees having commercial piers over City Tide and Submerged Lands shall pay an annual rent identified in the Master Fee Schedule for each square foot on permit area (base rental). 2. Annual rent shall be paid on or before March 1. 3. The Base Rental shall be adjusted annually to reflect the increase or decrease in Consumer Price Index (CPI) for each twelve month period. The CPI (all urban consumers, all items) for the Los Angeles -Long Beach - Anaheim, California area as published and released by the Bureau of Statistics for the U.S. Department of Labor shall be the index utilized for calculating the rental adjustment. 4. The base rental shall be recalculated every ten years pursuant to an appraisal commissioned by the City of Newport Beach. In determining • the value of tide and submerged lands, the appraiser shall consider the fact that commercial use of publicly owned tidelands is economically feasible only in conjunction with privately owned uplands. • 5. All appraisals shall be conducted by an MAI appraiser(s) with membership in the American Institute of Real Estate Appraisers and experienced in assessing the value of tidelands. 6. The provision of this subsection shall not apply to tidelands subject to a written lease requiring the payment of rent based on gross receipts. PI H -1 STANDARD DRAWINGS The following Standard Drawings have been approved and are on file in the Public Works Department: Precast Reinforced Concrete Groin Panel Detail For Raising Bulkheads Grand Canal - Platform and Steps Type I Grand Canal - Platform and Steps Type II Single or Joint Residential Use Gangway Single Residential Use Float Without Pier Single Residential Use Float West Newport Channels Commercial Pier and Float Installation Single Residential Use Float With Pier Single or Joint Residential Use Pier Sections Pile Details Eye Bolt For Boat Anchorage Gangway Hanger Bracket Datum Planes Natural Sand Profiles in Newport Harbor DESIGN OF STRUCTURES Dwg. No. STD -600 -L Dwg. No. STD -601 -L Dwg. No. STD -602 -L Dwg. No. STD -603 -L Dwg. No. STD -604 -L Dwg. No. STD -605 -L Dwg. No. STD -606 -L Dwg. No. STD -607 -L Dwg. No. STD -608 -L Dwg. No. STD -609 -L Dwg. No. STD -610 -L Dwg. No. STD -611 -L Dwg. No. STD -612 -L Dwg. No. STD -613 -L Dwg. No. STD -614 -L A. Design of harbor structures that do not conform to the Standard Drawings contained within "Design Criteria and Standard Drawings for Harbor Construction," needs the approval of the Building Department prior to the issuance of a harbor permit. B. Harbor structures shall be designed in accordance with design criteria adopted by the City of Newport Beach and contained within "Design Criteria and Standard Drawings for Harbor Construction." C. The decking of all piers and pier platforms shall not exceed an elevation of 9.0 M.L.L.W. nor be less than an elevation of 8.0 M.L.L.W. JOINT OWNERSHIP PIERS A. Permits may be granted for joint ownership piers at the prolongation of common lot lines subject to the following conditions: 9 • 0 0 H -1 1. No permits will be granted to persons other than the owners or long -term lessee of the abutting upland properties. 2. The permit application must be signed by the fee owners or long -term lessee of all abutting upland property having access to the facility. 3. The permit shall provide that all parties shall have equal rights under the permit and shall be held jointly responsible for compliance with all rules, regulations, and conditions set forth in the permit. B. The policy for setbacks applies to joint ownership piers with the exception that the slips, floats and piers may extend over the common property line. BULKHEADS A. All bulkheads in residential districts shall be installed on the established bulkhead line or at a location behind the bulkhead line that would preserve the design profile of the harbor. Any retaining or ornamental wall installed landward of the bulkhead line shall be considered a bulkhead if it also serves to contain the waters of the harbor and shall be processed in the same manner as if it were on the bulkhead line. The Harbor Resources Division may issue permits for bulkheads, between U.S. Bulkhead Station Numbers 112 -109 not to exceed the bayward side of the "Vacated East Bay Avenue." U.S. Bulkhead Station 104 for the addresses at 2209, 2223, 2227, 2231 and 2233 Bayside Drive: Staff recommendation for a bulkhead at these properties shall not exceed a point bayward of the average high tide line established at a point 40 feet landward of the face of the bulkhead at the property at 2137 Bayside Drive, and then on a straight line from that point to the bayward most point of the bulkhead at the property at 2301 Bayside Drive. B. Bulkheads shall be at the existing height established for the area and shall be connected to adjacent bulkheads. In cases where no adjacent bulkhead or bulkheads exist, a wing wall or wing walls shall be constructed from the bulkhead landward adequate to contain the fill behind the bulkhead constructed from the bulkhead landward adequate to contain the fill behind the bulkhead. No solid or masonry structure shall be constructed on a bulkhead. 10 J H -1 C. The height and design of all bulkheads and wing walls shall be subject to the design and construction standards of the Building Department. D. All bulkhead permits may be subject to a detailed construction drawing being approved by the Building Department. Drawings signed by a Civil or Structural Engineer may be required. E. The bulkhead shall not be used to support any structure on the abutting upland property unless the bulkhead has been properly designed to carry the additional loads. F. In areas where there is existing development and it is of direct benefit to the City to have a bulkhead constructed, the City may contribute 1/3 of the cost of constructing a bulkhead across street ends. PARKING REQUIREMENTS A. All commercially operated boat docking facilities shall provide 0.75 parking stalls for each single boat slip and 0.75 parking stalls for each 25 feet of available mooring space not classified as a slip. • B. For dry boat storage areas, 0.33 parking stalls shall be provided for each storage space available. C. For floating dry docks, at least two (2) off - street parking stalls shall be provided exclusively for each dry dock. D. All parking shall conform to the City of Newport Beach off - street parking standards. E. Commercial Activities Permits 1. On -site Parking a. On -site parking shall be provided as follows: i. Charter vessels: one parking space for each three occupants, including crewmembers; 11 • H -1 ii. Sport fishing vessels: one parking space for each two occupants, including crewmembers. b. Said on -site parking shall be provided on the adjoining upland property. If adequate parking is not available on -site, all or a portion of the required parking spaces may be provided at an off - site location, subject to the approval of the Assistant City Manager and the Planning Director. The use of an off -site lot shall not be approved unless: i. Such is so located as to be useful in connection with the use of the vessel. ii. Parking on such lot will not create undue traffic hazards in the surrounding area. iii. Such lot and the adjoining upland property are in the same ownership and the owner is entitled to the immediate • possession and use thereof. Ownership of the off -site lot is defined as ownership in fee or a leasehold interest of a duration adequate to serve the proposed commercial activity. 0 C. When a vessel will not offer services to the general public, all or a portion of the required parking may be provided at a remote off - site location, if transportation is provided from the off -site parking location to the site where the vessel is moored. Parking for the shuttle vehicles must be provided near the site where the vessel is moored unless said vehicles will be stored at the remote off -site location at all times when not in use. d. If the use of the off -site parking location is approved, the owner(s) and the City shall execute a written instrument (the form and content of which is acceptable to the City Attorney) providing for the maintenance of the required parking spaces on such lot for the duration of the commercial activity. Said instrument shall be recorded in the office of the County Recorder prior to issuance of a Commercial Harbor Activities Permit, and copies thereof shall be filed with the Harbor Resources Division. WA rt H -1 • SAFETY REQUIREMENTS A. All commercially operated boat docking facilities shall be equipped with fire fighting facilities as specified by the Fire Chief of the City of Newport Beach. B. Any electrical service upon any pier, dock or float shall be installed under a permit obtained from the City of Newport Beach Building Department. C. Any domestic water service upon any pier, dock, or float shall be installed under a permit obtained from the City of Newport Beach Building Department. D. All commercial piers, floats or docks used for the loading of passengers, shall be lighted in such a manner as to provide an illumination level of 0.5 -foot candles for all areas used for the loading of such passengers. SANITARY REQUIREMENTS A. A permit for a pier, dock or float shall not be issued until the rough plumbing for the dwelling unit or the required restrooms serving such pier, dock or float, has been installed and approved by the City Building Inspector. The use of a pier, is dock or float will not be allowed until restroom facilities are completed and in operation. B. All public or private commercially operated shore - connected boat anchorages shall have a minimum of two restroom facilities, one for women and one for men, for each 20 boat slips or boat berths available in the anchorage area. The minimum walking distance from the farthest boat berth to the restroom facility shall not exceed 400 feet. C. Sewage Pumping Facilities. Permission may be granted to install and operate sewage pumping facilities for boats moored to shore - connected structures providing such installations are first approved by the Harbor Resources Division. In requesting approval, the following information must be submitted in letterform to the Harbor Resources Division: 1. The name and address of the person responsible for the installation; 13 0 0 H -1 2. The name and address of the manufacturer of all pumping equipment; 3. A complete description of the materials and the pumping equipment to be used; 4. An 8" x 11 ", or larger, sketch clearly showing the location of the sewage discharge lines, the connection to the sewer system, and the area to be served. SETBACKS A. All piers and floats for residential properties shall be set back a minimum of five feet from the projection of the property line. B. All piers and floats for commercial properties may extend to the projection of the property line. C. The projection of the property line bayward of the same bearing from the • bulkhead shall generally be used in determining the allowable setbacks for piers and floats. Because there are certain physical conditions which preclude the strict application of this policy without prejudice to adjoining properties, special consideration will be given to areas where precise projections of the property line have not been determined and the following conditions exist: 1. Where property lines are not approximately perpendicular to the bulkhead line. 2. Where curves or angles exist in the bulkhead line. 3. Where bridges, topography, street ends or publicly owned facilities adjoin the property. MOORINGS A. Boats moored at private or public docks shall not extend beyond the projection of the property lines of the property to which the dock facility is connected in accordance with Section 20 -C. B. Any boat moored at a pier, dock, or float shall not extend bayward a distance of • more than the width of its beam beyond the pier, dock or float. Between 14 H -1 bulkhead station 256, beginning at Collins Avenue to bulkhead station 255, boats moored at a pier dock or float shall not extend more than 15' bayward from the end of the pier dock or float or more than the width of the beam of the boat, whichever is less. C. Mooring Fees for both onshore and offshore moorings shall be set annually by Resolution of the City Council. BALBOA ISLAND A. No new, non - commercial piers on Balboa Island shall be approved unless in the public interest. New non - commercial piers, if approved, shall be constructed in strict conformance with this Policy and standard drawings. Piers presently permitted may be maintained and repaired upon securing a maintenance permit. Any revision of an existing pier or float shall be in strict conformance with this Policy and shall not be approved if the addition or revision would, in comparison to the existing structure, further restrict or impair the public' s use of the bay or beach in the vicinity of the pier or floats. B. Revision to existing structures shall be limited to the following: • 1. The overall square footage of the revised structure shall be equal to or less than the square footage of the permitted structure; 2. The revised structure does not extend landward more than the permitted structure; 3. The revised structure does not extend beyond the City permit line (the U.S. Pierhead line or such other bayward extension of the permit area that is permitted by this Policy; and 4. The revised structure is wholly within the original permitted area as specified in the existing permit on file with the City. C. Whenever any application to install a new, non - commercial pier or revise an existing pier is submitted to the Harbor Commission all property owners (according to the latest equalized assessment roll prepared by the County of Orange and available to the City) within 300 feet of the exterior boundaries of the parcel for which the application is submitted shall be notified in writing by the Harbor Resources Division of the pending application. The applicant shall 15 '' J 0 H -1 provide the Harbor Commission with a list of property owners and envelopes addressed with postage prepaid. *BAYWARD LOCATION OF PIERS AND FLOATS A. U.S. Bulkhead Sta. No. 107 to No. 109. Piers will be permitted to extend out to the U.S. Pierhead Line. B. U.S. Bulkhead Sta. No. 109 to No. 110. Piers may be permitted to extend 16 feet channelward of the U.S. Pierhead Line. C. U.S. Bulkhead Sta. No. 110 to 112. Piers will be permitted to extend out to the U.S. Pierhead Line. D. U.S. Bulkhead Sta. No. 112 to No. 113. Piers will be permitted to extend out to the U.S. Pierhead Line. Commercial piers between "A" Street and Adams Street will be subject to special permits approved by Harbor Commission. is E. U.S. Bulkhead Sta. No. 113 to 114. Piers shall be subject to a special permit approved by the Harbor Resources Division. F. U.S. Bulkhead Sta. No. 114 to No. 119. Piers will be permitted to extend to the U.S. Pierhead Line. G. U.S. Bulkhead Sta. No. 119 to No. 120. Piers may be permitted to extend 20 feet beyond the U.S. Pierhead Line. H. U.S. Bulkhead Sta. No. 120 to No. 221. Piers may be permitted to extend 20 feet beyond the U.S. Pierhead Line. I. The Rhine. Special permits approved by the Harbor Resources Division shall be required for construction of piers in the Rhine, extending northerly from U.S. Bulkhead Sta. No. 120. J. U.S. Bulkhead Sta. No. 122 to No. 125. Piers or boat slips may be permitted to extend 20 feet channelward of the U.S. Pierhead Line. *Based on Harbor Regulations adopted by the City Council on December 15,1941. 0 16 H -1 J K. West Newport Channels. Piers may be permitted in the Rivo Alto, the Rialto, and the channel lying westerly of Newport Boulevard. Piers, slips, and floats will be permitted to extend channelward a distance of 30 feet maximum from the channel lines in the Rivo Alto, the Rialto, and the channel lying westerly of Newport Boulevard. Property extending to the ordinary high tide line, with a frontage exceeding thirty (30) feet will be allowed 1 -foot increase in float width parallel to the Pierhead Line, for each additional 2 feet frontage. The piers, slips and floats in Balboa Coves shall not extend into the channel a distance greater than 30 feet from north line of channel shown on Tract 1011. Floats. Up to 20 feet in length may extend into the bay the 30 feet from the said line of waterway, however, for floats over 20 feet in length, the 30 feet distance shall be reduced 1 -foot for each 2 feet added to the length of the float. The maximum permissible length of float shall be 30 feet. (Second paragraph of Sec. 23 (k) added by Resolution No. 6139.) L. U.S. Bulkhead Sta. No. 226 to No. 227. Piers or boat slips will be permitted to extend to the U.S. Pierhead line. M. U.S. Bulkhead Sta. No. 227 to 128. Piers or boat slips will be permitted to extend to the bulkhead line. ID N. U.S. Bulkhead Sta. No. 128 to No. 130. Piers or boat slips will be permitted to extend to the U.S. Pierhead line. O. U.S. Bulkhead Sta. No. 130 to No. 131. Piers or boat slips may be permitted to extend 20 feet channelward of the U.S. Pierhead Line. P. Upper Bay. Piers or boat slips may be permitted to extend to the pierhead lines as shown on Harbor Lines Map approved by City Council and on file in the Public Works Department. Q. U.S. Bulkhead Sta. No. 132 to No. 137. Pier or boat slips will be permitted to extend to the U.S. Pierhead Line. R. U.S. Bulkhead Sta. No. 137 to east property line of Beacon Bay Subdivision. Piers shall be granted under special permits approved by the Harbor Resources Division to extend 16 feet beyond the U.S. Pierhead Line. 17 • ;a 0 H -1 LI S. East Property Line of Beacon Bay Subdivision to U.S. Bulkhead Sta. No. 104. Piers may be permitted to extend 20 feet channelward of the U.S. Pierhead Line. T. U.S. Bulkhead Sta. No. 104 to No. 106. Piers shall be subject to special permits approved by the Harbor Commission. U. Bay Island. Piers will be permitted to extend to the U.S. Pierhead Line on the west, northerly and easterly sides of the Island. Piers will not be permitted on the north side of the channel south of Bay Island. V. Balboa Island. All new piers and revision to existing permits shall be subject to special permits approved by the Harbor Commission. Revisions to existing piers will be permitted providing they do not lessen the use of either the immediate water or land areas. 1. South Bay Front East of U.S. Bulkhead Sta. No. 256. Piers may be permitted to extend 16 feet channelward of the U.S. Pierhead Line. Dredging around floats shall not exceed a depth of minus 4 feet at mean lower low water along a line 85 feet channelward of and parallel to the bulkhead line. 2. South Bav Front between U.S. Bulkhead Sta. No. 256 and No. 259. Piers may be permitted to extend 10 feet channelward of the U.S. Pierhead Line. Dredging around floats shall not exceed a depth of minus 2 feet at mean lower low water along a line 60 feet channelward of and parallel to the bulkhead line. 3. South Bay Front from Emerald Avenue Northwesterly to the Westerly Prolongation of the Northerly Line of Lot 5, Block 1, Resubdivision of Section 1, and Balboa Island. Piers will be permitted to extend to City pierhead line. Dredging around floats shall not exceed a depth of 2 feet at mean lower low water along a line 45 feet channelward of and parallel to the existing concrete bulkhead. 4. North Bay Front. Piers may be permitted to extend 10 feet channelward of the U.S. Pierhead Line, except where a pier line has been established by the City. Dredging around floats shall not exceed a depth of minus 2 feet at mean lower low water along a line 60 feet channelward of the parallel to the U.S. Bulkhead Line or the existing concrete bulkhead. M I`sall 0 5. East Bay Front. Piers may be permitted to extend 10 feet channelward of the U.S. Pierhead Line northerly of the northerly line of Park Avenue and 16 feet channelward of the U.S. Pierhead Line southerly of the northerly line of Park Avenue. Dredging around floats shall not exceed a depth of minus 2 feet at mean lower low water along a line 60 feet channelward of and parallel to the bulkhead line. W. Collins Isle. Piers will be permitted to extend to the U.S. Pierhead Line on the southwest and west side of Collins Isle. No piers will be permitted on the north or east side of Collins Isle. X. Harbor Island. Piers will be permitted to extend to the U.S. Pierhead Line. Special permits approved by the Harbor Commission will be required for piers northeasterly of Lots 14,15,16 and 36. Y. Lido Isle. Piers may be permitted to extend out to the U.S. Pierhead Line, except on the westerly side between U.S. Bulkhead Sta. No. 172 and No. 174. Piers may be permitted to extend 20 feet beyond the U.S. Pierhead Line between U.S. Bulkhead Sta. No. 172 and 174. 1. Piers and floats will not be permitted in the beach area along the northerly side of Lido Isle between the easterly line of Lot 849 and the westerly line of Lot 493. 2. Piers and floats will not be permitted in the beach area along the southerly side of Lido Isle between the easterly line of Lot 919 and the westerly line of Lot 457. Z. Linda Isle. Piers or boat slips will be permitted to extend to the pierhead lines as shown on Harbor Lines Map approved by City Council and on file in the Public Works Department. EXCEPTIONS Exceptions may be approved by the Harbor Commission to any of the requirements and regulations set forth if there are special circumstances or conditions affecting the harbor installations that would impose undue hardship on the applicant, or a waterfront property owner' s access to the water is impacted by a public works project, or if it would be detrimental to the best interest of the City. 19 0 �)d C] 1061 SIGNS A. No signs shall be permitted beyond the bulkhead lines with the exception of the following: 1. Informational and directional signs of service to the public such as fuel, gasoline, live bait, ice, beer and similar signs which in general list services and commodities but do not advertise a specific brand. 2. Brand name signs which are customarily a part of a fuel pump or a vending machine installation. B. No sign permitted beyond the bulkhead lines shall exceed 4 square feet in total area. STORAGE LOCKERS Storage lockers and boat boxes may be installed on shore - connected piers and floats • subject to the following limitations: A. The overall height shall not exceed 30 inches when located bayward of residential property zones. B. The overall height shall not exceed 30 inches when located bayward of commercial and industrial property zones where the piers and floats are used primarily for the mooring of pleasure boats. C. The overall height shall not exceed 60 inches when located on facilities bayward of commercial and industrial zoned property where the use is not primarily for the mooring of pleasure boats. The overall height shall be measured from the deck of the pier or float to the top of the storage locker. (Sec. 26 adopted as Sec. 2 of Addendum No.1 by Resolution No. 6041.) 0 20 `J H -1 . RACE COMMITTEE PLATFORM Race committee platforms and instruction platforms may be constructed bayward of the bulkhead lines at recognized yacht clubs and recognized sailing schools. All work shall require issuance of a Harbor Permit. ENCROACHING PIERS AND FLOATS In areas where existing piers and floats encroach in front of abutting upland property owned by others, a new permit approved by the Harbor Commission, shall be required upon: A. Any change in type of existing use of the piers and floats. B. Any change in type of existing use of the abutting upland property owned by the permittee. C. Any change of existing ownership of the abutting upland property owned by the permittee or upon the death of the permittee. D. Any destruction of the pier and float in which over 60% of the replacement value • of the pier and float has been destroyed. Before the Harbor Commission acts on the new permit, the owner of the abutting upland property, in front of which the harbor facility encroaches, shall be notified in writing of the meeting in which the new permit will be considered. PATIO DECKS In areas where the waterways are privately owned, and within Promontory Bay, patio type decks may be cantilevered beyond the established bulkhead lines subject to the following conditions: A. The maximum projection of patio decks encroachments beyond the bulkhead line shall be limited to 5 feet. B. The minimum setbacks from the prolongations of the side property lines shall be 5 feet. C. No float shall be permitted within 2 feet of the decks. 21 0 H -1 D. No permanent structure shall be permitted on the projecting portion of the patios except: 1. Planters and benches not over 16 inches in height. 2. Railings not over 42 inches in height with approximately 95% open area. FLOATING DRY DOCKS A. Permits for floating dry docks may be considered by the Harbor Resources Division, subject to the following conditions: 1. The location is in waters bayward of commercial, manufacturing or unclassified zones. 2. The prior approval of a Use Permit by the Planning Commission. B. Permits for floating dry docks are issued for one location only. A new permit must be obtained to move a floating dry dock from one location to another location within the harbor. PROMONTORY BAY The following conditions are to be placed on each harbor permit when approved: A. That the permittee shall be responsible and maintain the area delineated on the harbor permit free and clear from floating rubbish, debris or litter at all times. B. That the permittee shall be responsible for all maintenance dredging, in accordance with the design profile for Promontory Bay, for the area between the bulkhead line and pierhead line as delineated by the harbor permit. GRAND CANAL A. The following conditions are to be in effect and placed on each harbor permit for the Grand Canal: 1. That the permittee shall be allowed either one pier platform, or in lieu thereof, two shore mooring type appurtenances per lot. Pier platforms 22 H -1 e and shore moorings shall be constructed according to "Design Criteria and Standard Drawings for Harbor Construction" adopted by the City of Newport Beach. 2. That all vessels (maximum length 18 feet) moored in the Grand Canal shall be tied off to pier platform structures or shore moorings. Floating platforms or slips will not be allowed. Vessels tied to the bulkhead or by alternate methods not approved by the Harbor Resources Division shall be prohibited. 3. That the permittee shall be allowed no more than one vessel per shore mooring. 4. That any shore mooring approved for the Grand Canal shall display a permit number issued by the Harbor Resources Division. 5. That each vessel tied to any pier platforms in the Grand Canal be anchored from the stern in such a method as to prevent the vessel from swinging into adjoining vessels or across bayward prolongations of private property lines. B. There shall be no permits issued for shore moorings or pier platforms fronting on alleys, avenues or other public easements terminating on the Canal. C. There shall be no new permits issued for shore moorings or pier platforms bayward of those lots at the extreme south end and north end of Grand Canal. OCEAN FRONT SAND DUNES As a result of wind, storm and tidal conditions, sand has built up in specific locations forming sand dunes. These range from a height of a few inches to as much as five feet. This build up can present problems for adjacent property owners in the form of increased pressure on ornamental and retaining walls and interfering with views of the ocean. To resolve these problems, property owners may apply for a Harbor Permit to do excavation of beach sand directly oceanward of their property in the area bounded by the prolongation of their side property lines. 23 1* r�� 0 Reaffirmed - January 24,1994 Amended - June 27,1994 Amended - June 26,1995 Amended - March 25,1996 Amended - June 8,1998 (effective July 22,1998) Amended - December 14,1998 Amended - May 8, 2001 Amended - September 10, 2002 Amended - October 28, 2003 • E H -1 24 �a K -1 • GENERALPLAN MANNER OF ADOPTION AND AMENDMENT The General Plan or any part or element thereof, and any amendment to such plan or any part or element thereof, shall be adopted in the following manner: A. Public Hearing - Planning Commission. The Planning Commission shall hold at least one public hearing before approving a General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, and shall give notice of hearing by at least one publication in a newspaper of general circulation within the City, and mailed notice to any community association which may be impacted by a proposed amendment, as determined by the Planning Director, or to any individual or community association which has expressed an interest in a proposed amendment and requested mailed notice, at least ten days prior to the first of such hearings. If the proposed General Plan Amendment would affect the permitted uses or intensity of uses of real property, notice of the hearing shall be mailed or delivered at least 10 days prior to the hearing to the property owner or his duly authorized agent, to all owners of property and occupants within 300 feet of the boundaries of the property; and to the project applicant. However, if the number of persons to whom notice would be mailed or delivered is greater than 1,000, the requirement for individual mailed or delivered notice may be waived by the Planning Director. B. Approval by Planning Commission - Resolution. The approval by the Planning Commission of the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, shall be by the adoption of a resolution, endorsed by the chairman and Secretary of the Commission and transmitted to the City Council. C. Public Hearing - City Council. Before adopting the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, the City Council shall hold at least one public hearing. Notice of the time and place of the hearing shall be given at the time and in the manner provided for the giving of notice of the hearing by the Planning Commission. D. Referral of Proposed Changes Back to Planning Commission. In adopting a General Plan or any part or element thereof, or any amendment to such plan or 1 0 0 K -1 any part or element thereof, which has been approved by the Planning Commission, the City Council shall consider the recommendation of the Planning Commission. If the City Council intends to make major changes and take an action not considered by the Planning Commission, the changes shall be referred back to the Planning Commission for its recommendation. Planning Commission consideration of an alternative shall be construed liberally so as to allow the City Council to act on any one of a range of alternatives generally considered by the Planning Commission. The Planning Commission shall report back to the City Council with their recommendation on the proposed changes within 45 days. E. Adoption by City Council - Resolution. The adoption of the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, shall be by resolution. AMENDMENT PROCEDURES (GENERAL PLAN) City Amendments: A. City-sponsored -Aamendments to the General Plan shall be initiated by the City Council aft^ ..A ti frem the Planning , ion C " .,...,...., B. ht initiating action to amend the General Plan, the City Council shall direct the Planning Commission to set public hearings for such amendments, as it deems appropriate. C. Prior to making its recommendation on the initiatien of proposed General Plan amendments, the Planning Commission may do such research, as it deems necessary to establish whether the proposed amendment warrants ce;s'ratienapproval. Property Owner Amendments: DA. Aeit? —;end fsr- pEroperty owners may regtiestapply for an amendment to the General Plan limited to changes to the land use designation and /or development limit for their property. Such request shall be made by the filing of an application on a form prescribed by the Planning Director along with the fee established by the City Councilsubmitted in writing to the T'— lane ng Cemanissio . If property that is the subiect of an aoolication is in more than one ownership, all the owners shall join in filing the application The request should 2 i:6i clearly set forth the reason for which the request is made,-and should contain information substantiating the need. jNh an a r .., r......., r —.7, ........i....,,...'. eivner or Ns R-- her -aufhori-ved representative or by the Planf�.-g Ge.—a-assion or shall include a quantifieat-en e€ the requested density and/or inte- isity, land use, and conceptual site plan. if the ...i need that the change is Baer y of initiation, it may reeenunend ini4 e-famendmients as set forth above. if not the Commission shall fersoard the request to she City se with its re snanendatien that initiation of themes uni arraRted. The City ceuncil, after eensideratien of toe request and of the report he Planning Co.. -. iss:e �, }na�eith,.. initiate she prepesed amendment and Elire t eriginater without €urtheraetion, or defef adien en the p p sea a ..a n —n:nent to F. if ei:izen is initiated, a and,ler prep°fky es aner amendment request appheations related to the request must be filed within if applications are not filed within this time fraine� the ipdtiatian shall e)Epire. Adopted - April 22,1974 Amended - June 23,1980 Amended - November 23,1981 Amended - November 22,1982 Amended - November 27,1989 Amended - January 24,1994 Amended - February 26,1996 Amended - May 8, 2001 11 IMPLEMENTATION PROCEDURES FOR THE CALIFORNIA ENVIRONMENTAL QUALITY ACT A. Intent. K -3 The intent of this policy statement is to protect the environment of the City of Newport Beach, to comply with the California Environmental Quality Act (CEQA), and to implement the basic principles, objectives, and criteria contained in the Guidelines adopted by the Secretary for Resources pursuant to the provisions of California Environmental Quality Act, as amended. These implementation procedures are intended to satisfy the requirements of Sec. 15022 of the CEQA Guidelines, and are designed to be used in conjunction with the CEQA statutes and Guidelines. In the event that any provision of this policy is found to be inconsistent with CEQA, the Guidelines or case law, this policy shall be revised to comply with applicable law. B. Definitions. As used in this policy statement, the following definitions shall apply: 1. California Environmental Quality Act (CEQA) means Public Resources Code, Sections 21000 et seq., as amended. 2. CEQA Guidelines means the "Guidelines for Implementation of the California Enviroiunental Quality Act ", prepared by the Secretary for Resources. 3. All definitions contained in CEQA and the Guidelines shall also apply to this policy statement. C. General Policies. The following general policies shall apply: 1. The City, in implementing the requirements of CEQA, shall, wherever possible, integrate these procedures into the existing planning and review procedures of the City. • 1 1 • K -3 2. In reviewing and assessing the significance of environmental impacts, the City shall be guided by the adopted General Plan policies and standards. D. Environmental Determinations. 1. Activities Not Subject to CEQA. This policy statement shall apply only to activities that are subject to CEQA. Activities that are not "Projects" as defined in Guidelines Sec. 15378, and activities that are "Ministerial" as defined in Guidelines Sec. 15369 are not subject to CEQA or this policy statement. Examples of City activities that are not normally subject to CEQA include but are not limited to, the following: Business licenses Parking permits Sign permits • Demolition permits Grading permits Building permits Final subdivision maps Certificates of use and occupancy Coastal Commission Approvals in Concept Exceptions. There may be instances where unusual circumstances cause one of these activities to be considered a discretionary action subject to CEQA. Examples include, but are not limited to, the following: a. Any building permit or grading permit application or other action which is normally considered ministerial but due to special circumstances is determined to have the potential to cause a significant effect on the environment. Examples may include the following: Work in an area of unusual erosion potential or ground instability Work affecting scenic or sensitive biological resources • 2 K -3 • An activity that may generate substantial public health impacts, such as noise, odors, or toxic materials b. Any building or grading permit in a sensitive area for which no prior CEQA review has occurred and no discretionary permit (e.g., use permit, site plan review) is required. Determination. The Planning Director shall have the authority to determine whether an activity is subject to CEQA. Action by the Decision - Making Body. No findings or discussion of CEQA compliance shall be required for activities that the Planning Director has determined not to be subject to CEQA. 2. Projects that are Exempt from CEQA. CEQA and the Guidelines provide that the following types of projects are exempt from the requirement to prepare an Initial Study unless there are special circumstances that could result in significant environmental effects. 0 a. Statutory Exemptions. Activities that qualify for a statutory exemption as provided under Sec. 15260 et seq. of the Guidelines do not require further environmental review. b. Categorical Exemptions. The various classes of categorical exemptions are contained in Section 15300 et seq. of the Guidelines. The discussion of exceptions contained in Section 15300.2 shall apply particularly to projects and activities that would affect the shoreline, bluffs, wetlands, public views and other sensitive environmental resources. The Planning Director shall have the authority to interpret the applicability of Categorical Exemptions to particular projects, including City- sponsored activities (e.g., Zoning Code amendments, assessment districts, construction and maintenance of utilities) and privately- initiated applications. C. "General Rule" Exemptions. During the preliminary review of an application, each discretionary project that is not covered under a 3 0 K -3 statutory or categorical exemption shall be evaluated to determine whether it qualifies for an exemption under the general rule contained in Sec. 15061(b)(3) of the Guidelines, which states, "Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." The Guidelines further encourage agencies to adopt a list of project types that would qualify for the general rule exemption. Project types which qualify for this exemption include, but are not limited to: 1. Minor changes to the Municipal Code which do not authorize physical development. 2. Minor changes to public infrastructure such as installing trees; replacing or upgrading streetlights, traffic signals, etc; and other public improvements of a minor nature. 3. Administrative City actions such as budget amendments, professional services agreements, etc. which do not involve projects which affect the physical environment • Determination. The Planning Director shall have the authority to determine the applicability of exemptions for all public and privately initiated projects. Action by the Decision - Making Body. Prior to approval of any project that is exempt from CEQA, such a finding shall be affirmed by the decision - making body. Notice of Exemption. After approval of a project that was found to be exempt, the Planning Director may prepare and file a Notice of Exemption as provided under Section 15062 of the Guidelines. 3. Initial Studies. If a project is subject to CEQA and is not exempt under one of the provisions listed under Section D.2, the Planning Director shall conduct an Initial Study according to the requirements contained in Section 15063 of the Guidelines. Where it is determined that consultant assistance is required to complete the Initial Study, the procedural requirements contained in Section E shall apply. • 4 K -3 Applicant's Responsibilities. The applicant shall submit all information determined by the Planning Director to be necessary for the preparation of the Initial Study. In addition, when consultant assistance is required the applicant shall be responsible for all costs as provided under Sections E and F. Determining Significant Effects. In determining whether or not a project may have a significant effect the City will generally follow the guidance contained in Section 15064 and Appendix G of the Guidelines. In addition, the following shall be considered in determining whether or not a project may have a significant impact, in view of the particular character and beauty of Newport Beach: a. A substantial change in the character of an area by a difference in use, size or configuration is created. b. Substantial grading, excavating or other alteration to the natural topography. C. Substantial alteration of the shoreline or waters of the bay or ocean either directly or indirectly. 0 Determination. On the basis of the information and analysis contained in the Initial Study, the Planning Director shall determine whether a Negative Declaration or EIR should be prepared, as provided by Sec. 15063(b) of the Guidelines. 4. Negative Declarations. As provided in Section 15070 of the Guidelines, the Planning Director shall prepare a proposed Negative Declaration for a project subject to CEQA when either: a. The Initial Study shows that there is no substantial evidence that the project may have a significant effect on the environment; or b. The Initial Study identifies potentially significant effects, but: i. Revisions in the project made by or agreed to by the applicant before the proposed Negative Declaration is released for public review would avoid the effects or 5 0 • K -3 mitigate the effects to a point where clearly no significant effects would occur, and ii. There is no substantial evidence before the agency that the project as revised may have a significant effect on the environment. Notice and Posting of a Proposed Negative Declaration. The Planning Director shall provide notice of a Negative Declaration as required by Sec. 15072 of the Guidelines. Action by the Decision - Making Body. Prior to approval of any project for which a Negative Declaration was prepared, appropriate findings shall be prepared by the Planning Director for consideration by the decision - making body. Notice of Determination. Within 5 working days following approval of a project for which a Negative Declaration was prepared, the Planning • Director shall prepare and file a Notice of Determination as provided under Section 15075 of the Guidelines. 5. Environmental Impact Reports. • If the Initial Study shows that there is substantial evidence that any aspect of the project, either individually or cumulatively, may cause a significant effect on the environment, regardless of whether the overall effect of the project is adverse or beneficial, the Planning Director shall either prepare a Draft EIR or use a previously certified EIR which the Planning Director determines would adequately analyze the project. Applicant's Responsibilities. The applicant shall submit all information determined by the Planning Director to be necessary for the preparation of the EIR. In addition, when consultant assistance is required the applicant shall be responsible for all costs as provided under Sections E and F, below. Consultant Assistance. If consultant assistance is required in the preparation of a Draft EIR, the procedures contained in Section E, below, shall be followed. T K -3 • Notice of Preparation. The Planning Director shall prepare and distribute a Notice of Preparation as provided by Sec. 15082 of the Guidelines. The NOP shall be reviewed by the Environmental Quality Affairs Committee pursuant to City Council Resolution No. 98 -17. Screencheck Draft EIR. If a consultant is retained to assist the City in preparing a Draft EIR, the Planning Director may require the consultant to submit one or more screencheck drafts for review prior to finalizing the Draft EIR for publication. Notice of Completion of a Draft EIR. The Planning Director shall prepare and distribute a Notice of Completion as provided by Sec. 15085 of the Guidelines. Copies of the NOC and Draft EIR shall also be provided to the Environmental Quality Affairs Committee for their review pursuant to City Council Resolution No. 98 -17. Final EIR. After completion of the Draft EIR public review period the Planning Director shall prepare a Final EIR as provided by Sec. 15089 of the Guidelines. 0 Action by the Decision - Making Body. Prior to approval of any project for which an EIR was prepared, the Final EIR shall be certified as provided by Guidelines Sec. 15090 and appropriate findings as required by Sec. 15091, 15092 and 15093 shall be prepared by the Planning Director for consideration by the decision - making body. Notice of Determination. Within 5 working days following approval of a project for which an EIR was prepared, the Planning Director shall prepare and file a Notice of Determination as provided under Section 15075 of the Guidelines. E. Consultant Assistance. When the Planning Director determines that consultant assistance is required for the preparation of an Initial Study, Negative Declaration or EIR, the following procedures shall be followed: 1. Consultant List. The Planning Director shall maintain a list of consultants having a sufficient variety of expertise to assist the Planning Director in the preparation of Initial Studies or EIRs when required. • 7 i;n 0 K -3 2. Consultant Selection. When outside assistance is required, a consultant shall be selected by the Planning Director from the City's consultant list based on the nature of the project and the expertise of the consultant. If it is determined by the Planning Director or requested by the applicant that proposals should be solicited from more than one consultant, the Planning Director shall prepare and distribute a Request for Qualifications (RFQ) or Request for Proposals (RFP). Following receipt of proposals or statements of qualifications, the Planning Director shall evaluate the submittals and select the best - qualified consultant to assist in the preparation of the EIR. The applicant may submit recommendations regarding the selection of a consultant, but the final decision regarding consultant selection shall be made by the Planning Director. 3. Scope of Work and Budget. After a consultant has been selected a detailed scope of work and budget shall be prepared by the consultant and the Planning Director. 4. Contract Approval and Administration. The proposed scope of work and budget shall be submitted to the applicant for approval. If the proposal is acceptable, the applicant shall submit a deposit to cover the consultant costs plus reasonable City administrative expenses. The consultant shall not be authorized to commence work until such deposit is received from the applicant. The amount of the deposit will normally be the total project budget; however, for large projects the deposit may be made in two or more payments subject to approval by the Planning Director. After receipt of the applicant's deposit the Planning Director shall prepare and execute a contract for consultant services in a form meeting the approval of the City Attorney, and shall administer the contract through project completion. At the conclusion of the project any unused deposit shall be returned to the applicant. F. Fees. The preparation of an Initial Study, Negative Declaration or EIR shall be subject to the following fees: 1. For Initial Studies and Negative Declarations prepared by the Planning Director without consultant assistance, a reasonable fee shall be collected • 8 �r K -3 4P as established by resolution of the City Council as part of the Planning Department Fee Schedule. 2. For Initial Studies and EIRs prepared with consultant assistance, there will be a City fee as required by the municipal code. 3. No future applications shall be accepted from any applicant, and no permits or entitlements shall be approved or issued until all prior indebtedness to the City incurred under this section by such applicants has been paid in full. 4. The amount of the fee shall become an obligation of the applicant to the City whether or not the permit or entitlement is issued, or whether or not the applicant exercises the right to obtain the permit or entitlement. Such fees accrue and become payable when the City gives notice to the applicant of the amount of such fees. This liability shall be enforceable in any court of competent jurisdiction. In the event suit is filed by the City, in addition to the amount of the fee, applicant shall pay reasonable attorney's fees. G. Authority of the Planning Director. The Planning Director shall have authority for the interpretation of CEQA, the Guidelines, and this policy statement as they may affect any particular activity or project, including private development projects and City public works projects. In addition, the Planning Director shall have authority for the following actions: 1. Determining whether activities are subject to CEQA. 2. Making recommendations regarding the applicability of Categorical, Statutory and "General Rule" Exemptions for consideration by the decision - making body. 3. Preparing Initial Studies for projects that are not exempt from CEQA. 4. Preparing and posting proposed Negative Declarations. 5. Preparing and distributing Notices of Preparation and Environmental Impact Reports for City- sponsored projects and projects for which the City has approval authority as Lead Agency. 0 9 +r 0 K -3 U • 6. Preparing responses to comments on Negative Declarations and EIRs. Preparing draft findings, resolutions and mitigation monitoring programs for consideration by decision - making bodies. 10 K -3 8. Making recommendations to the Environmental Quality Affairs Committee, the Planning Commission, the City Council, or other City officials regarding the requirements of CEQA or the adequacy of environmental documents. 9. Reviewing and commenting on Negative Declarations, Notices of Preparation, Draft EIRs, or other environmental documents prepared by other agencies. 10. Developing administrative procedures for implementation of CEQA and these policies. 11. Providing NOPs, NOCs and staff assistance as needed to the Environmental Quality Affairs Committee. Adopted - March 26,1973 Amended - August 8,1977 Amended - July 23,1973 Amended - May 22,1978 Amended - September 10, 1973 Amended - May 13,1974 Amended - June 25,1979 Amended -June 9, 1980 Amended - June 10, 1974 Amended - January 26,1987 Amended - May 27,1975 Amended - October 26,1987 Amended - May 10, 1976 Amended - January 24,1994 Amended - May 23,1977 Amended - March 22,1999 11 •