HomeMy WebLinkAbout11/13/2012 - Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
November 13, 2012 — 7:00 p.m.
I. STUDY SESSION - 3:30 p.m.
II. CLOSED SESSION - 4:44 p.m.
A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION INITIATION
OF LITIGATION (Government Code § 54956.9(c)): 1 potential case
B. CONFERENCE WITH LABOR NEGOTIATORS (Government Code §'54957.6)
Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Deputy
City Manager/Human Resources Director; Negotiators.
Employee Organizations: All Labor Associations: Association of Newport Beach Ocean
Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach
Employees League (LABEL); Newport Beach Firefighters Association (NBFA); Newport Beach
Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport
Beach Part Time Unit (UPEC, Local 777); Newport Beach Police Association (NBPA); Newport
Beach Police Management Association (NBPMA); Newport Beach Professional and Technical
Association (NBPTEA)
C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957)
Title: Aaron C. Harp, City Attorney
III. RECESS
IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
V. ROLL CALL
Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
VI. CLOSED SESSION REPORT - None
VII. PLEDGE OF ALLEGIANCE - Council Member Hill
VIII. INVOCATION - Mayor Pro Tern Curry
DL PRESENTATIONS
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Proclamation Awarded to the CERT Program and Volunteers for the National FEMA Award
Mayor Gardner read and presented the proclamation to Karen Tringali, Member of the CERT
Program, who expressed her appreciation for the support of the program.
Presentation on Vector Control Activity in Newport Beach
Jared Dever, Director of Communications of the Orange County Vector Control District, and
Michael G. Hirsh, District Manager, utilized a PowerPoint presentation on Vector Control
activities in the City. He discussed the definition of a vector, the Vector Control's goals and
responsibilities, categories of vectors, and vector diseases in Orange County, including West Nile
Virus. He addressed the mosquito life cycle and breeding sources, amount of treated gutters and
storm drains, unique habitats within the City, urban runoff, tidal fluctuations, and aerial
surveillance. He presented information on Flea -borne Typhus, including the suburban
transmission cycle, methods to reduce risks of the disease and trends through the years. He
announced information on the organization's new website and additional Vector Control
programs. Discussion also ensued regarding species of mosquitoes that breed in the Back Bay
and the role of the scorpion in the ecosystem.
X. NOTICE TO THE PUBLIC
Kip
Mayor Pro Tem Curry reported attending the Southwest County Conference and visiting Crystal Cove.
Further, he participated in the Navy League Conference.
Council Member Daigle commented positively on the Memorial Bike Ride event including participation,
location and staff support. She also reported touring the new Civic Center. Council Member Hill
announced that the Memorial Bike Ride has raised $60,000 which the City will be matching on a 3 -to -1
basis. He reported that Amazon.com will donate 6% of sale proceeds from purchases made on
NewportBeachMemorialRide.com.
Council Member Henn reported that the Tidelands Management Committee meeting scheduled for
November 21 will be changed to November 28.
Mayor Gardner announced the upcoming Mayor Walk around Santa Ana Heights at 9:00 a.m. on
November 15. She also reported attending the Sunrise Rotary Club.
XII. CONSENT CALENDAR
A. READING OF MINUTESIORDINANCES AND RESOLUTIONS
1. MINUTES FOR THE OCTOBER 23, 2012 SPECIAL AND REGULAR MEETINGS.
[100 -2012] Waive reading of subject minutes, approve as amended, and order filed.
2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all
ordinances and resolutions under consideration, and direct the City Clerk to read by title
only.
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B. RESOLUTIONS FOR ADOPTION
3. RESOLUTION SUPPORTING AN APPLICATION BY CITY OF COSTA MESA FOR
OCTA MEASURE M2 TRAFFIC SIGNAL SYNCHRONIZATION PROGRAM FOR
NEWPORT BOULEVARD CORRIDOR SYNCHRONIZATION PROJECT. [100-
20121 Adopt Resolution No. 2012 -94 supporting the City of Costa Mesa application for the
OCTA Measure M2 Traffic Signal Synchronization Program for the Newport Boulevard
Corridor Synchronization Project.
4. EMERGENCY MANAGEMENT PERFORMANCE GRANT AUTHORIZATION. [100-
2012] Adopt Resolution No. 2012 -95 authorizing the City Manager and the Fire Chief to
act as the "Authorized Agents" to execute for and on behalf of the City any actions
necessary to obtain federal financial assistance provided by the Federal Emergency
Management Agency ( "FEMA') and sub - granted through the State of California.
C. CONTRACTS AND AGREEMENTS
5. TERMINATION OF HOUSING ASSISTANCE AGREEMENT WITH THE CITY
MANAGER (C- 4398), AND RELEASE OF ASSOCIATED PROMISSORY NOTE AND
DEED OF TRUST. 1381100 -20121 a) Authorize the Mayor to execute the agreement
terminating the Housing Agreement between the City and the City Manager; b)
acknowledge that the promissory note recorded against the Property is discharged and
direct the City Clerk to mark the promissory note as "PAID IN FULL'; and c) authorize
the Mayor, City Clerk and City Attorney to take all required actions, including executing
the Request for Full Reconveyance and transmit the same to First American Title
Insurance Company to release the second deed of trust against the property.
6. 2012 -2013 SIDEWALK, CURB AND GUTTER REPLACEMENT - AWARD OF
CONTRACT C -5204. [38/100 -20121 a) Approve the project drawings and specifications; b)
award Contract No. 5204 to Grigolla & Sons Construction Company, Inc., for the total bid
price of $491,400 and authorize the Mayor and City Clerk to execute the contract; c)
establish an amount of $49,000 (10 %) to cover the cost of unforeseen work not included in
the original contract; and d) approve Budget Amendment No. 13BA -019 transferring
$206,600 in project savings from the Fashion Island Area Streets Overlay - Account No.
7281-C2002046 (Measure M Turnback) to Account No. 7281-C2001009 (Sidewalk Curb and
Gutter Replacement). This amendment also recognizes $4,800 in revenues to (Account
9010 -5901) for private contributions from Lido Isle Community Association and
appropriates $4,800 to 7013- C2001009. (Council Members Hill and Rosanshy recused
themselves on this item)
7. FY2012 -2013 TRAFFIC SIGNAL REHABILITATION PROJECT - AWARD OF
CONTRACT C -5223. [381100 -20121 a) Approve the project drawings and specifications; b)
award Contract No. 5223 to Dynalectric, for the total bid price $201,672 and authorize the
Mayor and City Clerk to execute the contract; and c) establish a contingency of $30,000
(approximately 15 percent) to cover the cost of unforeseen work.
D. MISCELLANEOUS
10. CULTURAL ARTS GRANTS, 2012/13. [100 -20121 Approve recommended recipients for
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YY2012/13 Cultural Arts Grants as selected by the City Arts Commission in accordance
with City Council Policy 1 -10 - Financial Support for Culture and the Arts.
11. AGREEMENT FOR REFUSE CONTAINER COLLECTION SERVICES (C-
5275). [381100 -20121 Authorize the Mayor and City Clerk to enter into an agreement with
Robert's Waste & Recycling, Inc. to provide non - residential refuse collection services.
13. PROPOSED ORGANIZATIONAL CHANGES IN THE LIFE SAFETY SERVICES
DIVISION OF THE FIRE DEPARTMENT. 1100 -2012] a) Establish the Life Safety
Specialist occupational series with a salary range of $60,722 to $103,417 annually (LSS
I /II/III) and consolidate the Fire Prevention Specialist, Fire Prevention Plans Examiner,
and Community Preparedness Coordinator job classifications into the series; and b) adopt
Resolution No. 2012 -102 establishing Life Safety job classification and salary ranges.
517. PLANNING COMMISSION AGENDA REPORT FOR NOVEMBER 8, 2012. [100-
20121 Receive and file.
Regarding Item 5 (Termination of Housing Assistance Agreement with the City Manager, and Release
of Associated Promissory Note and Deed of Trust), Council Member Henn noted that the City Manager
has voluntarily paid the City's loan in full and commended him for doing this.
Council Member Rosansky reported that he and Council Member Hill will be recusing themselves from
Item 6 since they both own property within 500 feet of the subject property.
Motion by Mayor Pro Tem Curry, seconded by Council Member Rosanskv to approve the
Consent Calendar, except for the items removed (8, 9 and 12); and noting the recusal by Council
Members Rosansky and Hill on Item 6.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council
Member Selich, Council Member Henn, Council Member Daigle
XIII. ITEMS REMOVED FROM THE CONSENT CALENDAR
8. REQUEST TO RETAIN EXISTING NON - STANDARD PRIVATE IMPROVEMENTS
WITHIN THE PUBLIC RIGHT -OF -WAY AT 224 AGATE AVENUE. [100 -20121
Dan Purcell expressed concern regarding making sidewalks more accessible to senior citizens and
the disabled. He encouraged Council to consider this type of item more carefully in the future.
Motion by Council Member Selich, seconded by Mayor Pro Tem Curry to waive City
Council Policy L-6, Private Encroachments in the public Rights -of -Way, to allow for raised brick
planters to encroach up to 4.5 feet into the Agate Avenue right -of -way at 224 Agate Avenue,
contingent upon all conditions of the Encroachment Permit process being met.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
9. REIMBURSEMENT OF THE NEWPORT CENTER TREE REPLACEMENT COSTS. [100-
20121
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City Manager Kiff described the item and recommended completing payment per the current,
agreement, but also have a discussion of the agreement going forward. He addressed City
Attorney direction regarding the need to update the agreement.
Dan Miller, The Irvine Company, and Council discussed areas covered under the current
agreement and the need to update the agreement.
Motion by Mayor Pro Tem Curry. seconded by Council Member Selich to a) direct staff to
transmit funds in the amount of $122,621 to The Irvine Company representing the City's share of
costs for Newport Center tree replacements in accordance with the Letter Agreement dated
February 5, 1985, between The Irvine Company and the City of Newport Beach; and b) approve
Budget Amendment No. 13BA -020 appropriating $122,621 from the General fund balance
reserves to Account No. 3170.8250.
Jim Mosher believed that the agreement is not binding on the City, addressed the City's
obligations to follow its rules, and highlighted terms of the agreement. He believed that there is
no obligation by the City to reimburse the costs;
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
12. CORONA DEL MAR LANE MERGE RELOCATION TRIAL - TRAFFIC ANALYSIS. [100-
20121
Mayor Gardner addressed the speed limit where Sharrows exist. She noted that the Corona del
Mar Business Improvement District has requested a continuance until January 2013.
Motion by Mayor Gardner, seconded by Council Member Selich to continue the item to
the January 8, 2013 City Council meeting.
Richard Nichols commented on the increased traffic resulting from the trial and expressed
concerns over reduced safety for bicyclists. He presented alternatives, including leaving the area
in its original condition and believed that implementing bicycle lanes on Coast Highway is
hazardous.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
XIV. PUBLIC COMMENTS
Homer Bludau, Member of the Newport Beach Chamber of Commerce Commodores and the Executive
Committee of Visit Newport Inc., presented a personal invitation to Council to the Sixth Annual
Mayor's and Council reception to be held on December 11, starting at 6:00 p.m. at Back Bay Bistro. He
noted that tickets are $25.
Jim Mosher commented on the passage of Measure EE and discussed obligations of Council imposed by
the passage of the measure, especially related to the payment of bills.
XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None
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XVI. CURRENT BUSINESS
14. COMMERCIAL TIDELANDS USES - SETTING RENT. [100 -20121
City Manager Kiff introduced the item and discussed the Ad Hoc Committee, details of the
proposed recommendations for other commercial tideland uses as listed in the staff report. He
addressed appraisals received, examples of the various proposed rates, rent rates paid by
surrounding areas, the survey of gas prices in surrounding areas, gas dock pricing, and
Committee recommendations. He addressed approved rents and the phase -in period, and the
updated large commercial marina proposal by the Ad Hoc Committee.
Seymour Beek, partner in Island Marine Fuel, spoke in opposition to going to a per gallon
system, but agreed with the Rasmussen proposal.
Gary Hill, Island Marine Fuel, agreed with Mr. Beek, especially as it relates to the Rasmussen
proposal and keeping with the calculation of square footage rather than gallons sold.
Christine Daggert, representing the Newport Beach Dock Owners' Association, believed that the
City is piecemealing the process when CEQA requirements require looking at the project as a
whole for potential effects on the environment. She urged Council to send notices to residential
owners and commented on property taxes paid on their docks by property owners. She believed
that there is a need to slow down and hold multiple workshops on the matter.
Gary Pickett, representing Ardell Marina, addressed the new large commercial marina proposal
compared to what was already passed. He expressed concerns regarding condensing the phase -in
period, increasing the annual fee, and problems with future appraisals. He asked that Council
consider yacht b: okerages related to the matter and expressed disappointment that the City has
not visited any of the Harbor businesses to determine implications of the proposed increases on
marina - related businesses. He stated that he prefers the resolution that has already been
approved.
Judy Gorski, Commodore of the Balboa Yacht Club, thanked Council for its actions and reported
on the programs held at the Club. She expressed concern with the economic impacts of the
proposed increases in the Harbor.
Discussion ensued relative to the appraisal process, benefits to the gallon - related calculations
compared to implementing a flat rent fee, similar actions by surrounding cities, and further
review by the Ad Hoc Committee and Council to ensure that the decisions made are internally
consistent with each other.
Council Member Rosansky noted that it is Council's intention that the revenues collected will be
reinvested back into the Harbor for additional improvements.
Motion by Council Member Rosanskv, seconded by Council Member Selich to a) adopt
Resolution No. 2012 -96 amending Resolution No. 2012 -91 and Resolution No. 2012 -92 relating to
Large Commercial Marinas; b) adopt Resolution No. 2012 -97 approving a model lease template
and model permit for commercial tidelands uses; c) adopt Resolution No. 2012 -98 setting fair
market value rent for commercial tidelands uses and d) direct the Ad Hoc Committee on Harbor
Charges to review and make recommendations to the rents and other charges considered by the
City Council to date (any other rents later proposed and adopted) to ensure that they are fair and
equitable. This shall be done prior to December 31, 2013.
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Council Member Daigle indicated that she does not support the first three recommendations
Mayor Pro Tern Curry indicated that the revised program was created at the request of the larger
marina owners and commended the Ad Hoc Committee for its efforts on this matter. He believed
that the revisions more closely represent the desires of the larger marina owners.
Council Member Hill noted that he is most concerned for small business owners and commended
the revisions recommended by the Ad Hoc Committee.
City Manager Kiff clarified that staff proposes a phase -in period for small marinas so that when
they catch up to the large marina amounts, they will be phased in. He stated that the same
percentage increase would be applied for small marinas with an adjustment in their phase -in
period.
Council Member Hill requested that City Manager Kiffs comments be made a part of the motion
and Council Member Rosansky and Council Member Selich agreed to the amended motion.
Amended motion by Council Member Rosanskv, seconded by Council Member Selich to
a) adopt Resolution No. 2012 -96 amending Resolution No. 2012 -91 and Resolution No. 2012 -92
relating to Large Commercial Marinas, including an amended phase -in period for small
commercial marinas; b) adopt Resolution No. 2012 -97 approving a model lease template and
model permit template for commercial tidelands uses; c) adopt Resolution No. 2012 -98 setting
fair market value rent for commercial tidelands uses; and d) direct the Ad Hoc Committee on
Harbor Charges by December 31, 2013, to review and make recommendations to the tidelands
rents considered by the City Council to date to ensure the rent is fair and equitable.
The amended motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn
Noes: Council Member Daigle
15. FOX LAWSON & ASSOCIATES' EXECUTIVE MANAGEMENT CLASSIFICATION AND
COMPENSATION STUDY. [100 -2012]
City Manager Kiff introduced the item, described the purpose of the study, and noted the need
for every employee to be within a compensation range.
Deputy City Manager Cassidy presented background information and the need to bring the City
into compliance with CalPERS regulations. She addressed the study, methodology, reasons for
the study, and turnover at the executive level going forward. She indicated that Council needs to
select the desired classifications and ranges.
Discussion ensued relative to the possibility of keeping the current compensation levels and
establishing ranges accordingly.
Bruce Lawson, Fox Lawson and Associates, addressed the City's compensation levels,
inconsistencies with the current market rates, and the need to set a structure going forward. He
also addressed the methodology for job evaluations, the scope and tasks assigned, incorporating
public sector numbers rather than private sector numbers, and building a structure using
current comparable agencies. He presented information on proposed ratings, job categories, and
hierarchy.
Regarding decision bands and developing the classification structure, Mr. Lawson stressed that
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no increases are being recommended for any individual. He also stated that a new structure is
needed that would allow for flexibility and would bring the City into current pay practices for
current and future employees.
Council Member Henn commented positively on the approach, believed that it is a myopic
approach because it only considers salary, addressed the importance of a program that would
allow flexibility in hiring and maintaining quality employees, and noted existing checks and
balances within the proposed system. He presented results of testing the new structure and
Council Member Henn presented examples of how the new structure would work using various
department director positions.
Discussion followed regarding the proposed ranges, minimum and maximum salary ranges, the
importance of having an established structure to reflect realities, revising the evaluation system,
and providing increases based on performance set by targets.
Mr. Lawson explained developing the compensation structure and the related graph. City
Manager Kiff noted that there are no current employees that are outside of the proposed ranges.
Council Member Henn clarified the recommended actions to be taken on this item. He indicated
a preference to pay for performance and not be locked into a structure that encourages paying
above median without assurances of performance above the median. He expressed concern with
incentivizing performance and recommended the 50th percentile range, but return with
recommendations to establish a 10% bonus potential as a performance incentive. City Manager
Kiff indicated that he would need to return to Council with how to establish performance
measures going forward and defining expectations for each position. He also expressed a
preference for a one -time incentive. The report would also discuss the merit side of compensation
including an incentive program that would affect total bonus potentials and structuring
performance measurements that would allow bonus payments.
Discussion followed regarding the City's ranking related to the other comparable cities, and
deferred compensation payments related to ensuring continued employment and performance.
Jim Mosher indicated confusion about the matter and reported that the City already has salary
ranges posted on its website. He questioned the compliance issue and whether it relates to
Council not having previously approved the matter. He also questioned the methodology used
and believed that the rating numbers have been manipulated. He addressed the importance of
considering total compensation and suggested ignoring the report and having Council set the
ranges as desired.
Motion by Council Member Henn. seconded by Council Member Selich to a) modify the
Key and Management Compensation Plan by adopting Resolution No. 2012 -100 establishing
Executive Management salary ranges at the market 50th percentile; and b) bring back an
accompanying merit -based incentive program for the specified 14 positions.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner,
Council Member Selich, Council Member Henn
Noes: Council Member Daigle
16. AMENDED AND RESTATED EMPLOYMENT AGREEMENTS FOR THE CITY
MANAGER (C -4358) AND CITY CLERK (C- 4100). [381100 -2012]
City Attorney Harp indicated that he prepared separate resolutions for each of the positions
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Jim Mosher believed that the staff report does not explain how the recommended increases were
developed and did not explain the recommended bonuses. He expressed opposition to the item.
Motion by Council Member Rosansky, seconded by Council Member Henn to adopt
Resolution No. 2012 -99 approving and authorizing the Mayor and Deputy City Clerk to execute
the Amended and Restated Employment Agreement for the City Manager.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
Motion by Council Member Hill, seconded by Council Member Henn to adopt Resolution
No. 2012 -101 approving and authorizing the Mayor and Deputy City Clerk to execute the
Amended and Restated Employment Agreements for the City Clerk.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
XVII. MOTION FOR RECONSIDERATION - None
XVIII. ADJOURNMENT - Adjourned at 9:25 p.m. in memory of Ray Watson
The agenda for the Regular Meeting was posted on November 8, 2012, at 4:40 p.m. on the City
Hall Bulletin Board located outside of the City of Newport Beach Administration Building.
The supplemental agenda for the Regular Meeting was posted on November 9, 2012, at 3:30
p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach
Administration Building.
City Clerk
Recording Secretary
. ac�
Mayor
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