Loading...
HomeMy WebLinkAbout10/10/2017 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting October 10, 2017 I. ROLL CALL - 4:00 p.m. Present: Council Member Brad Avery, Council Member Diane Dixon, Council Member Jeff Herdman, Council Member Will O'Neill, Council Member Scott Peotter, Mayor Pro Tem Duffy Duffield, Mayor Kevin Muldoon II. CURRENT BUSINESS SSL Clarification of Items on the Consent Calendar - None SS2. Debt Policy Review and Discussion Finance Director Matusiewicz introduced Mark Young, Principal at KNN Public Finance, and utilized a PowerPoint presentation to discuss the City's credit rating, history of bond issuances over the last decade, the purpose of the Debt Policy revisions, new requirements under SB 1029, and options for more control over the terms. In response to Council questions, Finance Director Matusiewicz explained the Central Library financing and reported that the bonds expired after 10 years. He also discussed the type of Civic Center and Park ("Civic Center") Certificates of Participation (COPs) used, noted there would be huge penalties if paid early, and confirmed that the General Fund repays the COP. In response to questions from Mayor Muldoon, he reported on the timeline of the COP pricing, that former Mayor Keith Curry, former Mayor Pro Tem Mike Henn, former Administrative Services Director Tracy McCraner and himself, when he was the Deputy Administrative Services Director, were involved in the make -whole call decision, Ms. McCraner and himself were in the pricing room in Irvine, and Ms. McCraner called former Mayor Curry and City Manager Kiff from the pricing room. He reported that PIMCO offered to purchase a portion of the bonds for $70 million. He explained SB 1029 and how the underground assessment districts will likely need financing in June, what Build America Bonds (BABs) subsidy is, and how general obligation bonds are taken to the voters, but revenue bonds and COPs are not. Council Member O'Neill referenced the Stone & Youngberg handout and how it criticized the City for not having a comprehensive debt management policy, and Resolution No. 2010-126 when the City Council at the time specified who could make these types of changes and not purchase more flexible call options. Mark Young indicated that these types of resolutions typically have parameters that can be as restrictive as a city wants, then the city would authorize the Preliminary Official Statement (POS) to be used as the template for the potential terms. He discussed the bond issue that occurred with the Poway Unified School District and suggested, for future occurrences, more transparency take place. City Manager Kiff explained the options for public input, including a protest hearing similar to Proposition 218 proceedings and potential ballot measures relative to capital improvement projects and new debt issuances. Mayor Muldoon believed that what they did was correct protocol; however, disagreed with the amount of the COP and the size of the Civic Center. If given the opportunity, Finance Director Matusiewicz indicated he would have continued with the make -whole call, but would have negotiated a better out clause. Volume 63 - Page 371 City of Newport Beach Study Session and Regular Meeting October 10, 2017 In response to Council questions, Mark Young discussed BABs and how this type of bond has the City taking the risk. He indicated he does not believe the City is in financial trouble. Finance Director Matusiewicz reported that the Civic Center project was not completely financed and explained how depleting reserves would affect the City's credit rating. He also discussed how borrowing a higher amount garners more interest by the institutional investors. City Manager Kiff indicated that financing the Civic Center project would also allow for the other Facilities Financial Plan (FFP) projects to be cash financed. Council Member Dixon noted that no one could have predicted the 2008 economic crisis and the interest rates. Discussion ensued relative to the timeline after awarding bids, the amount of money that was already expended at the time the bond was approved, and the reimbursement resolution that went before the City Council in February 2010, prior to construction. Mayor Muldoon expressed support for having a debt issuance ballot measure to set boundaries and limits on the scope and cost of projects, and lower the City's risk that could be compounded by unforeseeable issues like unfunded pension liability. He believed this should be reviewed by the Finance Committee. Council Member Peotter suggested preparing the ballot measures as City Charter amendments. Council Member O'Neill thanked Finance Director Matusiewicz for having the outside financial advisor attend the meeting to provide independent insight. Council Member Dixon agreed with bringing this to the Finance Committee, appreciated the information about what transpired during the financing of the Civic Center, and thanked staff for bringing clarity to the issue. Council Member Avery believed it was important for the public to understand how complicated it is to make the right decision in that circumstance and agreed with the options to create more transparency. Jim Mosher believed cities should not incur debt and not delegate these types of decisions, questioned whether the ballot measure results would be advisory or binding, and indicated he thought today's meeting would be to discuss the redline debt policy that will be considered by the Finance Committee. He announced that the California Debt and Investment Advisory Commission (CDIAC) conducted a webinar about debt issuance that is available on their website. SS3. Regulations Relating to Drones Support Services Commander/Police Lt. Psaros indicated that NBPD IT Coordinator Tom Encheff is also a licensed Part 107 Unmanned Aircraft Systems (UAS) pilot and a licensed pilot. He utilized a PowerPoint presentation to discuss quad -chopper style drones, the difference between commercial flying and recreational flying, Federal Aviation Administration (FAA) rules and regulations, airspace regulations, the City's airspace which is almost all contained in the John Wayne Airport (JWA) Class C airspace, current State laws, Newport Beach Municipal Code (NBMC) Section 5.46.010, criminal laws applicable to drone operations, how other cities are dealing with drones, and the role of law enforcement. In response to Council questions, Deputy City Attorney Maiorano indicated that the FAA opined that cities could regulate drones as it applies to land uses; however, no case law currently exists. He noted that the FAA has offered to provide their opinion on local ordinances prior to consideration. City Attorney Harp indicated that using drones for real estate purposes would require a film permit if the use is for commercial purposes. City Manager Kiff added that the permit may need to be simplified, compared to the standard film permit for a movie or other Volume 63 - Page 372 City of Newport Beach Study Session and Regular Meeting October 10, 2017 similar commercial use. Lt. Psaros discussed State laws, the difficulty in enforcing those related to drones, and how investigations would be handled. He referenced the information provided in his handout and reported that he and Mr. Encheff will be conducting training for the Police Department on how to conduct drone investigations. He noted that, since 2016, the City has had 85 drone events logged into the Computer Aided Dispatch (CAD) system. Erin Harlow discussed privacy and safety issues related to using drones and suggested banning the recreational use of drones. Jim Mosher discussed his experience with a drone at the Newport Dunes and asked if the City will be using drones for law enforcement or code enforcement and, if so, if limits will be set. Kelsey Brewer, ACC -OC Policy Manager, reported that the ACC -OC developed a model drone ordinance that was reviewed by the FAA to assist cities in dealing with preemption issues. She indicated that the ordinance has been adopted by many Orange County cities and cities in other states, and that ACC -OC would be happy to assist the City. She noted that the ordinance does not add more regulatory laws and was written so the City does not need to purchase additional technology to enforce the ordinance. She encouraged the City to work with the FAA to enforce its regulations and agreed that any regulation should be tied to land use authority. Referencing the penal codes, Mayor Muldoon believed there is no need for an ordinance, but the City should analyze the model ordinance to see if the Police Department could use the information for enforcement and educational purposes. Council Member Peotter noted that JWA could assist the City in regulating drones since the City falls within its airspace, expressed concern that officers might not be equipped to handle this issue, and believed that adding signage may assist with educating drone users. Council Member O'Neill took issue that the FAA is hindering the City's ability to regulate drones and protect privacy, Congress passed laws that a Federal court used to strike down FAA regulations for drone registration, the FAA's role needs to be better understood, and the best the City can do right now is send police officers to try to enforce pre -technological penal codes. Council Member Dixon noted that some of the non -Class C airspace is in her district, agreed that the City does not need new regulations, and noted residents need to know where to find answers. She recommended compiling all the information into one document in order to better understand what can be done within current regulations and laws, and suggested bringing this item back for more discussion. Mayor Pro Tem Duffield stated his son is a commercial helicopter pilot and reported that private and small aircrafts are not engineered to sustain an impact from a drone. He emphasized his safety concerns. SS4. Peninsula Crosswalk Study Without objection, Mayor Muldoon recommended that this item be continued to the October 24, 2017 City Council meeting. III. PUBLIC COMMENTS Corona del Mar High School students Max Johnson, ASB President, Jake Subota, Bridget Connelly, and Alec Lis discussed the proposed Corona del Mar High School Sport Complex, expressed support for Proposal B of the Environmental Impact Report (EIR) and commented on the need for the field lights, portable public announcement system, and a new track and field. They also believed that the proposed lights would produce less light pollution than the current pool and tennis court lights. Volume 63 - Page 373 City of Newport Beach Study Session and Regular Meeting October 10, 2017 City Attorney Harp announced that the City Council would adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION - Council Chambers Conference Room A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): 1 matter Agency Designated Representatives: Dave Kiff, City Manager, Carol Jacobs, Assistant City Manager, Barbara Salvini, Human Resources Director, Brian P. Walter and Peter Brown; Labor Negotiators. Employee Organizations: Newport Beach City Employees Association (NBCEA); Newport Beach Firefighters Association (NBFA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); and Newport Beach Professional and Technical Employee Association (NBPTEA). B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Government Code § 54956.9(d)(2) (e) (2)): 8 matters The Newport Beach Police Management Association (NBPMA), the Newport Beach Police Association (NBPA), the Newport Beach Firefighters Association (NBFA), the Laborers International Union of North America Local 777 (as affiliated with and on behalf of the Newport Beach Professional and Technical Employees Association (NBTEA) and Newport Beach City Employees Association (NBCEA)), on behalf of the current and former members of said unions, as well as Vladimir Anderson and Robert Salerno, in their individual capacities, are aware of the United States Court of Appeals for the Ninth Circuit's decision in the case of Flores V. City of San Gabriel (9th Cir. 2016) 824 F.3d 890 which may result in litigation against the City of Newport Beach related to the calculation and payment of overtime compensation. C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: 1 Newport Pier, Newport Beach, California 92663 Agency Negotiator: Seimone Jurjis, Community Development Director Lauren Weeding, Real Property Administrator Negotiating Parties: Blue Water Grill Under Negotiation: Instruct negotiator as to price and terms of payment. V. RECESS - 6:20 p.m. VI. RECONVENED AT 7:05 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Jeff Herdman, Council Member Brad Avery, Council Member Diane Dixon, Council Member Will O'Neill, Council Member Scott Peotter, Mayor Pro Tem Duffy Duffield, Mayor Kevin Muldoon VIII. CLOSED SESSION REPORT Volume 63 - Page 374 City of Newport Beach Study Session and Regular Meeting October 10, 2017 City Attorney Harp reported that there were no reportable actions taken; however, Closed Session Item IV.0 will be continued to the end of the meeting. IX. INVOCATION - Moment of Silence for the victims of the Las Vegas shooting and those affected by the Canyon Fires. Mayor Muldoon also provided the Invocation. X. PLEDGE OF ALLEGIANCE - Council Member O'Neill X1. NOTICE TO THE PUBLIC XIL CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM) Council Member O'Neill: • Attended the Newport -Mesa Unified School District's State of the Schools Address, the Corona del Mar Sandcastle Contest, a lecture at the Central Library for Walter Stahr's new book, the Crystal Cove Soiree, and the Mayor's Youth Council meeting • Announced the Art in the Park Festival will be held on October 14, 2017 Council Member Dixon: • Attended the Sister City Pumpkin Carving Event and the Corona del Mar Sandcastle Contest • Discussed the flooding on the Balboa Peninsula at A Street and B Street • Announced that a Finance Committee meeting will be held on October 12, 2017 Council Member Herdman: • Announced he watched the last City Council meeting relative to JWA issues and agreed with Mayor Muldoon's suggested future meeting items • Attended an AirFair meeting Mayor Pro Tem Duffield: • Attended the Harbor Cleanup Event and discussed the possibility of collecting the first rains Mayor Muldoon: • Announced he was one of the judges for the Corona del Mar Sandcastle Contest XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Seeking the assistance of a federal advocate to work with the City on FAA and related aviation matters, including communication with major air carriers (Muldoon) The City Council unanimously concurred to place the matter on a future agenda. Mayor Muldoon requested that Council be provided with federal advocate options when the matter is brought back. • Supporting additional review and verification of data accuracy from the County of Orange's seven noise monitoring stations on the JWA departure corridors (Muldoon) The City Council unanimously concurred to place the matter on a future agenda. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher requested the minutes be amended as he suggested in his correspondence (Item 1). Regarding Item 10 (Landscape Services for Parks and Facilities), he expressed confusion about the amounts in the contract, believed the item should have gone before the Parks, Beaches and Recreation Commission, and questioned the budget for the project. Volume 63 - Page 375 City of Newport Beach Study Session and Regular Meeting October 10, 2017 XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the September 26, 2017 City Council Meeting [100-2017) Waive reading of subject minutes, approve as written, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. ORDINANCE FOR ADOPTION 3. Non -Exclusive Commercial Solid Waste Franchises [421100-20171 a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Conduct second reading and adopt Ordinance No. 2017-16, An Ordinance of the City Council of the City of Newport Beach, California, Granting Non-exclusive Solid Waste Franchises to Provide Solid Waste Handling Services within the City of Newport Beach. RESOLUTION FOR ADOPTION 4. Pulled from the Consent Calendar. 5. Resolution Designating the Streets, Days, and Hours on which the Parking or Standing of Vehicles is Prohibited to Improve Street Sweeping Effectiveness [100-20171 a) Determine the action is exempt from California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2017-66, A Resolution of the City Council of the City of Newport Beach, California, Designating the Streets or Portions Thereof on which the Parking or Standing of Vehicles is Prohibited and the Specific Days and Hours of Such Prohibition to Improve Street Sweeping Effectiveness, and Rescinding Resolution No. 2017-14. CONTRACTS AND AGREEMENTS 6. Central Avenue Plaza Revitalization - Award of Contract No. 8197-2 (171112) [381100-20171 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(c) (Replacement or Reconstruction), on the basis that the project consists of the replacement or reconstruction of existing public facilities, involving no expansion of capacity, of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; b) Approve the project drawings and specifications; c) Award Contract No. 8197-2 to GMC Engineering, Inc. (GMC) for the total bid price of $380,000.00, and authorize the Mayor and City Clerk to execute the contract; and d) Establish $40,000.00, approximately 10 percent, contingency amount to cover the cost of unforeseen work not included in the original contract. MacArthur Boulevard Slope Landscaping Project - Award of Construction Contract No. 8176-1 (151,01) [381100-20171 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332 (in -fill development projects ), of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment; Volume 63 - Page 376 City of Newport Beach Study Session and Regular Meeting October 10, 2017 b) Approve the project drawings and specifications; c) Award Contract No. 8176-1 to for the total bid price of $228,450.00, and authorize the Mayor and City Clerk to execute the contract; and d) Establish approximately $22,850 (approximately 10 percent), contingency amount to cover the cost of unforeseen work not included in the original contract. 8. Bayview Heights Drainage Project — Reject All Bids — Contract No. 7109-1 (15X11) [381100- 2017] a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15333 (Small Habitat Restoration Projects) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment, b) Reject all bids received for Contract No. 8046-1; and c) Direct staff to re -advertise for bids at a later time. 9. Request for Waiver of City Council Policy L-6 at 3235 Ocean Boulevard (C-7050-3) [381100- 2017] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) Waive Council Policy L-6, Private Encroachments in the Public Rights -of -Way, to allow 17 temporary shoring caisson and four (4) permanent caissons and appurtenances that will encroach in excess of 1 -foot into the Ocean Boulevard public right-of-way, contingent upon all conditions of the Encroachment Permit process being met; and c) Direct staff to enter into an Encroachment Agreement with the Owner, and authorize the City Manager and City Clerk to execute the Encroachment Agreement'within one (1) calendar year upon receipt of approval. 10. Approval of Amendment No. One to Agreement with Mariposa Landscapes, Inc. for Landscape Services for Parks and Facilities (C-6375) [38/100-2017] a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve Amendment No. One with Mariposa Landscapes, Inc. for landscape services for parks and facilities and tree planting at various City locations, increasing the compensation by $6,823,000 for the first 3.years of the contract, and respectively to $2,496,460, $2,546,899.20, and $2,547,837.18 for each of the three optional extension years, and authorize the Mayor and City Clerk to sign the amendment. .MISCELLANEOUS 11. Planning Commission Agenda for the October 5, 2017 Meeting [100-2017] Receive and file. 12. Coastal Development Permit Waiver for De Minimis Development Located at 211 35th Street (PA2017-148) [100-2017] a) Determine this action is not a project as defined and is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines, because this action is to receive and file only and will not result in a physical change to the environment, directly or indirectly; and b) Receive and file. City Clerk Brown recused herself from Item 12 since she lives within 500 feet of the project. 13. Balboa Peninsula Pedestrian Crossing Study [100-2017] Continue to the October 24, 2017 City Council meeting. Volume 63 - Page 377 City of Newport Beach Study Session and Regular Meeting October 10, 2017 Council Member Peotter noted that the Corona del Mar Sports Complex is a project that would be decided on by the Newport -Mesa Unified School District Board of Education. Charles Griffin believed the Eastbluff area does not need lights. He discussed his background in the aerospace industry and believed planes flying out of JWA should fly over the freeway, not Newport Beach. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None XIX. CURRENT BUSINESS 14. Balboa Island Seawall Cap -Award of Contract No. 7066-1 (151111) [381100-2017] Council Member Herdman recused himself due to real property interest and left the dais. Charles Griffin discussed sea level rise and a new source of clean energy, using hydrogen and boron, and recommended people visit focusfusion.org for more information. Motion by Council Member O'Neill, seconded by Council Member Dixon, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; b) approve the project drawings and specifications; c) award Contract No. 7066-1 to Bosco Constructors, Inc. for the total bid amount of $1,444,444.00, and authorize the Mayor and City Clerk to execute the contract; d) establish a contingency of $ 216,000 (approximately 15% of Total Bid) to cover the cost of unforeseen work not included in the original contract; and e) authorize the City Manager to execute Amendment No. 4 to the current Professional Services Agreement with COWI Marine North America Inc. for a not to exceed fee of $93,360 for additional design, and bidding and construction support services. The motion carried by the following roll call vote: Ayes: Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon Recused: Council Member Jeff Herdman XX. MOTION FOR RECONSIDERATION - None City Attorney Harp announced that the City Council will be recessing to discuss Closed Session Item IV.0 and read the title. IV. CLOSED SESSION - 8:15 p.m. C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: 1 Newport Pier, Newport Beach, California 92663 Agency Negotiator: Seimone Jurjis, Community Development Director Lauren Weeding, Real Property Administrator Negotiating Parties: Blue Water Grill Under Negotiation: Instruct negotiator as to price and terms of payment. Volume 63 - Page 379 City of Newport Beach Study Session and Regular Meeting October 10, 2017 The City Council reconvened at 8:43 p.m. with all members of the City Council present. City Attorney Harp reported that there were no reportable actions tahen. )OU. ADJOURNMENT - 8:44 p.m. The agenda was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on October 5, 2017, at 4:00 p.m 7 -�) Mayor City Clerk Volume 63 - Page 380