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HomeMy WebLinkAbout11/28/2017 - Study Session / Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting November 28, 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 H. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar In response to Council Member O'Neill's questions regarding Item 3 (Newport Banning Ranch — Set Aside and Vacate All Approvals), City Attorney Harp explained the court in the Banning Ranch Conservancy litigation had issued a writ of mandate directing the City Council to set aside and vacate all approvals for the Banning Ranch Project and to return to the trial court within 45 days with proof the City complied with the court order. Regarding Item 10 (Approval of a Cooperative Agreement with the Friends of Newport Beach Animal Shelter), City Manager Kiff explained that the Traffic Division of the Police Department oversees the animal shelter and confirmed that the division is aware of City Council Policy D-5 (Digital Communications). Council Member Dixon requested that "Better Business Bureau" be amended to "Charity Navigator" in Section 2.4 of the agreement. In response to Council Member Herdman's questions regarding Item 8 (Bay Crossing Water Main Replacement Project - Approval of Professional Services Agreement with Dudek), Public Works Director Webb reported that the project does not include the area near the Pacific Coast Highway bridge. Regarding Item 14 (Approval of Amendment No. Two to Agreement with Mariposa Landscapes, Inc. for Landscape Services for Parks and Facilities), City Manager Kiff confirmed that the City has staff to oversee the contract, but the work will not be performed by City staff. He also confirmed that this is part of a process to eventually entirely outsource these services through staff attrition. In response to Council Member Dixon's questions regarding Item 13 (Approval of a Purchase Agreement with Halcore Group, Inc. dba Leader Industries for the Purchase of Two (2) 2018 Freightliner M2 Custom Ambulances), Municipal Operations Director Pisani confirmed that the ambulance purchase was moved up seven months due to pricing and is part of the vehicle replacement plan. In response to Council Member Avery's questions regarding Item 4 (Proposed Specifications for Moorings in Newport Harbor), which Mayor Pro Tem Duffield recused himself due to his business interests, Harbor Resources Manager Miller described the process taken to reach the requirements in the resolution, reported that, if a mooring drags, the mooring permittee will be required to increase the weight by 20%, and confirmed that the City has record of each mooring's weight. SS2. Orange County Drowning Prevention Task Force Lifeguard Operations Assistant Chief Williams utilized a PowerPoint presentation to explain the Task Force, discuss the Task Force Board and the global problem, provide drowning statistics, discuss Senate Bill 442, highlight the Task Force's public service announcements and advertisements, and provide lifeguard statistics and their involvement with drowning preventions and rescues. He reported on the Task Force's 2018 goals and noted that more information can be found at www.ocdrowningprevention.com. Volume 63 - Page 402 City of Newport Beach Study Session and Regular Meeting November 28, 2017 In response to Council Member Dixon's questions, Lifeguard Operations Assistant Chief Williams described the many ways lifeguards try to prevent drownings. Council Member Dixon noted the Vice Chair of the Task Force is a mother of a drowning victim and was in attendance at the Ben Carlson statue dedication last Memorial Day weekend, discussed the Water Watcher Tag tool, and commended the City and Lifeguard Operations Assistant Chief Williams for their involvement in the Task Force. Council Member O'Neill thanked Lifeguard Operations Assistant Chief Williams for chairing the Task Force. SS3. Advanced Metering Infrastructure (AMI) Utilities Manager Catron reported that the AMI would replace previous systems and utilized a PowerPoint presentation to discuss the previous system, AMI technology, benefits to the customer and City, and the AMI vendor selection process. He described the project, including the timeline, cost and funding, and stated the staff report will come back to Council early next year. In response to Council questions, Municipal Operations Director Murdoch and Utilities Manager Catron explained which agencies and cities use A1VII, how the phone application can assist customers, what the City learned during the pilot program conducted on the Peninsula, and indicated that the current meter reading service will no longer be needed once AMI is implemented. Prior to discussion relative to utilizing City poles, Mayor Muldoon recused himself due to his business relationship with wireless communications. In response to Council questions, Municipal Operations Director Murdoch and Utilities Manager Catron discussed current telecommunications applications, emphasized that the goal is to use public facilities to place the AMI equipment, rather than in front of residences, reported that only about 18 collectors are needed to read 20,000 meters, noted the repeaters probably do not need to be placed on street poles as depicted in the photo, discussed the long term difference in cost for cellular service versus radio service, pointed out that the current Water Master Plan does not include AMI; however, the new one could, and noted that installation takes about 30 minutes per house. City Manager Mff pointed out that the equipment will only be placed in areas that the City provides water to. Jim Mosher indicated that it appears everybody is supportive of this system as long as it is deployed with the least amount of intrusion as possible. He asked if there was a water meter vendor that uses the same technology as the electric or gas companies in order to share the collectors. In response to his question, Utilities Manager Catron indicated that the battery life in the water meter is 20 years. Council Member O'Neill commended the program in concept, noting that even though the initial cost is significant, there is sufficient funding in the Enterprise Fund and reserves, so there will be no need to raise rates. Further, the program will still allow the City to comply with the reserve policy. III. PUBLIC COMMENTS - None 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 Volume 63 - Page 403 City of Newport Beach Study Session and Regular Meeting November 28, 2017 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, and Peter Brown, Labor Negotiator. Employee Organizations: Newport Beach Lifeguard Management Association (NBLMA); 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)): 9 matters The Newport Beach Lifeguard Management Association (NBLMA), 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 LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(d)(4): 1 matter Council Member• Herdman recused himself from Item IRC. due to real property interest. D. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Government Code § 54956.9(d)(1)): 1 matter City of Newport Beach u. United States Federal Auiation Administration et al. United States Court of Appeals for the District of Columbia Circuit Case Number 17-1008 V. RECESSED - 5:00 p.m. VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member 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 - None LY. INVOCATION - Council Member Peotter X. PLEDGE OF ALLEGIANCE - Council Member Dixon XI. NOTICE TO THE PUBLIC Volume 63 - Page 404 City of Newport Beach Study Session and Regular Meeting November 28, 2017 XII. CITY COUNCIL ANNOUNCEMENTS (NON-DISCUSSIONITEM) Council Member Dixon: • Announced that her niece, Emily Leece Hastings, a graduate of Newport Harbor High School, recently graduated from the U.S. Marine Crops Officer Candidate School as a 2^d Lieutenant • Invited the public to attend a District 1 Town Hall Meeting on November 30, 2017 at 7:00 p.m. at Marina Park to discuss John Wayne Airport issues Council Member Herdman: • Attended the Citizens Police Academy graduation and a community airport information meeting • Invited the public to attend a John Wayne Airport departure issues forum on December 8, 2017 from 3:00 p.m. to 4:30 p.m. in the City Council Chambers • Announced the next Aviation Committee meeting will be held on December 11, 2017 at 4:00 p.m. • Served lunches during the OASIS Senior Center Thanksgiving Lunch Mayor Muldoon: • Provided information about the Operation Christmas campaign through the City Clerk's Office XIII. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA • Consideration of modifications and improvements to the visual displays in the City Council Chambers (Peotter) The City Council concurred to place the matter on a future agenda by a vote of 6-1, with Council Member Herdman voting no. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR City Manager Kiff noted amendments to the resolution for Item 4 and the agreement for Item 14 were provided to Council, and discussed the amendment to the agreement for Item 10 to change 'Better Business Bureau" to "Charity Watch:' Item 3 (Newport Banning Ranch — Set Aside and Vacate All Approvals) John McClendon, attorney for the Banning Ranch Conservancy, served the City with the court's mandate and read a portion of the brief. He thanked the City for complying with the court order and concurred with staffs decision that doing so is a non -discretionary ministerial duty. Mayor Muldoon noted that the ruling involved prior Council Members. Steve Ray, Executive Director of the Banning Ranch Conservancy, thanked the City for tonight's action. He referenced the 2006 General Plan and believed there was an inadequate attempt by the City to acquire the property. He indicated that the Banning Ranch Conservancy would like to move forward with the acquisition of the property and requested the City preserve the land as open space and park and also be involved in the acquisition. He reported they have a vision plan for the property. Cindy Black noted that the community cares and read a quote by Dinos Christianopoulos. Terry Welsh, President of the Banning Ranch Conservancy, stated he has prioritized the acquisition of Banning Ranch as an open space amenity for the past 18 years and asked Council to do the same. He stated the Conservancy's position is for the land to be purchased at fair market value, but a price that is agreeable to the public and owners. He indicated he will be reaching out to the City to meet with them. Terry I{oken thanked Council for being attentive to the audience and expressed support for keeping Banning Ranch as open space. Volume 63 - Page 405 City of Newport Beach Study Session and Regular Meeting November 28, 2017 Kevin Nelson, Founder of Nature Commission, expressed support for preserving Banning Ranch. He discussed the rights of the property owners and who the owners are, but emphasized the uniqueness of the property. Mike Mohler, Newport Banning Ranch, discussed the difficulty in determining the proper price for the property and noted that the Banning Ranch Conservancy has never discussed the value of the property or offer to purchase it. He indicated that the property owners are committed to a future for the property, hoped to meet with the City and the Banning Ranch Conservancy to form better communication, and thanked the City, prior Council, and staff. David Tanner asked what has been learned from the process and if there was a way for developers to know if their projects will succeed before spending many years and a lot of money. Item 4 (Pr000sed Specifications for Moorings in Newport Harbor) Mayor Pro Tem Duffield recused himself due to business interests. John Panek explained his reasons for disagreeing with the proposed chain specifications and requested that the City look into what has been used. Carter Ford expressed support for and described the process and work product, which added the requirement to increase the weight by a minimum of 20% if the boat dragged, maintained the chain specification as presented in September, and included the installation of a safety chain and sand line mooring provisions. Item 10 (Approval of a Cooperative Agreement with the Friends of Newport Beach Animal Shelter) Tim Steaks. Friends of the Newport Beach Animal Shelter (FONBAS), reported that FONBAS was created to establish a world-class animal shelter and fund programs to find loving homes for all animals in need. XV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the November 14, 2017 City Council Meeting [100-2017] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. ORDINANCE FOR INTRODUCTION 3. Newport Banning Ranch -Set Aside and Vacate All Approvals [100-2017] a) Determine that this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations. Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. In addition, determine that this action is not a project under CEQA because it is a ministerial action. (Pub. Resources Code, § 21080, subd. (b)(1).); and b) Introduce Ordinance No. 2017-17. An Ordinance of the City Council of the City of Newport Beach, California, Repealing All Approvals for the Newport Banning Ranch Planned Community Project (PA2008-114), and pass to second reading on December 12, 2017. Volume 63 - Page 406 City of Newport Beach Study Session and Regular Meeting November 28, 2017 RESOLUTION FOR ADOPTION 4. Proposed Specifications for Moorings in Newport Harbor [100-20171 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; and b) Adopt amended Resolution No. 2017-74. A Resolution of the City Council of the City of Newport Beach, California, Adopting Specifications for Moorings Located Upon Tidelands in Newport Harbor. Mayor Pro Tem Duffield recused himself from Item 4 due to business interests. CONTRACTS AND AGREEMENTS 5. Pulled from the Consent Calendar. 6. Arterial Highway Pavement Repair Program - Award of Contract No. 7185-1 (18R03) [381100-20171 a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 Class 1 (c) (maintenance of existing public facilities involving negligible or no expansion of use); b) Approve the project drawings and specifications; c) Approve Budget Amendment No. 18BA-021 transferring $304,000 in project savings Account No. 12101-980000-15R17 to Account No. 12101-980000-181103; d) Award Contract No. 7185-1 to All American Asphalt for the total bid price of $497,497.00, and authorize the Mayor and City Clerk to execute the contract; and e) Establish a contingency of $50,000 (approximately 10%) to cover the cost of unforeseen work not included in the bid price. Mayor Pro Tem Duffield recused himself from Item 6 due to business interests. MacArthur Boulevard and University Drive Pavement Rehabilitation Project - Approval of Professional Services Agreement with Civil Works Engineers (181123) (C-7183-1) 1381100-20171 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 a Professional Services Agreement with Civil Works Engineers of Costa Mesa, California, for the MacArthur Boulevard and University Drive Pavement Rehabilitation project at a not -to -exceed price of $240,969.00, and authorize the Mayor and City Clerk to execute the Agreement. 8. Bay Crossing Water Main Replacement Project - Approval of Professional Services Agreement with Dudek (16W12) (C-8487-1) [381100-20171 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 a Professional Services Agreement with Dudek Inc. of San Juan Capistrano, California, for the Bay Crossing Water Main Replacement project at a not -to -exceed price of $244,915.00, and authorize the Mayor and City Clerk to execute the Agreement. Council Member Dixon recused herself from Item 5 due to real property interests. 9. Amendment No. 3 to the Professional Services Agreement with Kimley-Horn & Associates, Inc. for Environmental Services for the Koll Center Residences Project Located at 4400 Von Karman Avenue (PA2015-024) (C-7030-1) [381100-20171 Volume 63 - Page 407 City of Newport Beach Study Session and Regular Meeting November 28, 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 the amendment to the Professional Services Agreement and authorize the Mayor and City Clerk to execute the agreement. Council Member O'Neill recused himself due to real property interests, and Mayor Muldoon recused himself due to a potential membership in a club that is within 500 feet of the project. 10. Approval of a Cooperative Agreement with the Friends of Newport Beach Animal Shelter (C-8532-1)[38/100-20171 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 and authorize the Mayor and City Clerk to execute the amended Cooperative Agreement between the City and FONBAS. 11. Approval for the Purchase of Police Patrol Vehicles (C-8533-1) [381100-2017] 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) Approve the purchase of four (4) Ford Police Interceptor Utility vehicles from Fairview Ford of San Bernardino, California, and authorize the City Manager to execute a Purchase Order in the amount of $127,631. 12. Approval of Purchase Agreement with Haaker Equipment Company for One (1) Vactor 2110 "CNG" Sewer Cleaner (C-8060-3) [381100-20171 a) Determine that the action is exempt from the California Environmental Quality Act (CEQ) 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) Approve an agreement for the purchase of one (1) Vactor 2110 "CNG" Sewer Cleaner from Haaker Equipment Company for a total cost of $485,584.12, and authorize the Mayor and City Clerk to execute the agreement; and c) Approve Budget Amendment No. 18BA-019 in the amount of $485,584.12 transferring $385,584.12 from unappropriated fund balance In the Equipment Replacement Fund and $100,000 from unappropriated fund balance in the AQMD Fund to complete the purchase. 13. Approval of a Purchase Agreement with Halcore Group, Inc. dba Leader Industries for the Purchase of Two (2) 2018 Freightliner M2 Custom Ambulances (C-8003-2) [381100- 20171 a) Approve the purchase of two ambulances from Halcore Group, Inc., dba Leader Industries for a total cost of $599,918.06; b) Approve and authorize the Mayor and City Clerk to sign the Purchase Agreement with Halcore Group, Inc., dba Leader Industries for this purchase; and c) Approve Budget Amendment No. 18BA-018 increase expenditure appropriations by $300,000.00 from Equipment Replacement unappropriated fund balance to the Equipment Replacement Fund account 7529032-911016 in the Municipal Operations Department. 14. Approval of Amendment No. Two to Agreement with Mariposa Landscapes, Inc. for Landscape Services for Parks and Facilities (C-6375) [381100-20171 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; b) Approve amended Amendment No. Two to Agreement with Mariposa Landscapes, Inc. for Landscape Services for Parks and Facilities; and Volume 63 - Page 408 City of Newport Beach Study Session and Regular Meeting November 28, 2017 c) Approve Budget Amendment 18BA-017 in the amount of $165,000 transferring funds from Parks Division Salary and Benefit and Maintenance and Operations accounts into Org/Object 0109031-811020, Contract Services Parks[Facilities. MISCELLANEOUS 15. Appointment to the Aviation Committee [241100-2017] 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) Confirm Council Member Herdman's appointment of Joel Bergenfeld as the District 5 Designated Member to the Aviation Committee. 16. Confirmation of Appointment to the Newport Beach Restaurant Association Business Improvement District Advisory Board of Directors [241100-20171 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) Appoint Eunjoo Pluenneke, representing Balboa Lily's Restaurant, as the 11th member to the NBRA BID Advisory Board of Directors for term ending June 30, 2018. 17. Accept the 2016 Emergency Management Performance Grant [100-2017] 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: b) Accept the grant funding in the amount of $13,084 to be used in support of the City's emergency management program; and c) Approve Budget Amendment No. 18BA-016 to accept grant funds from the Federal Emergency Management Agency (FEMA) through the County of Orange, and increase expenditures appropriations by $13,084 in account 01040403-821005. 18. Community Programs Grants for Fiscal Year 2017-2018 (C-8281) [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) Pursuant to City Council Policy A-12, find that the organizations listed below provide services or programs that serve residents and are beneficial to residents' quality of life and authorize the allocation of $40,000 in Community Programs Grants in the following manner: Our Lady Queen of Angels Church - Helping Hands 8,500 Serving People in Need, Inc. (SPIN) 5,000 Share Our Selves (SOS) 5,000 Someone Cares Soup 1{itchen 5,000 Council on Aging 3,000 Boys and Girls Clubs of Central Orange Coast 3,000 Newport -Mesa Family YNICA 3,000 Newport Beach Sister City Association 2,000 Back Bay Therapeutic Riding Club 1,500 Youth Employment Services (YES) 1,500 Amazing Grace Ministries 1,500 Advocates for Grandparent -Grandchild Connection 1,000 TOTAL $40,000: and c) Allocate $25,000 for the Balboa Island Historical Society and $10,000 for the Newport Beach Historical Society. Volume 63 - Page 409 City of Newport Beach Study Session and Regular Meeting November 28, 2017 19. Request to Install Toshiba Classic Street Light Banners (N2017-0204) [100-20171 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 the provisions of Council Policy L-16 pertaining to the following requirements for use of the City public right-of-way for banner installation: open to the general public without charge and install no more than one hundred (100) banners; and c) Allow for the installation of a maximum of 153 street light banners from Monday, February 12, 2018 to Monday, March 12, 2018, for the 2018 Toshiba Classic golf tournament. Installation will be along East Coast Highway, MacArthur Boulevard, and Jamboree Road. Motion by Mayor Pro Tem Duffield, seconded by Council Member O'Neill, to approve the Consent Calendar, except for the item removed (Item 5); and noting the recusals by Mayor Pro Tem Duffield on Items 4 and 6, Council Member Dixon on Item 8, and Mayor Muldoon and Council Member O'Neill on Item 9; and accepting the amendments to Items 4, 10 and 14. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon XVI. ITEM REMOVED FROM THE CONSENT CALENDAR 5. Balboa Island Water Main Replacement (Phase I) -Award of Contract No. 7173-1 (16WI1) [381100-2017] Council Member Herdman recused himself due to real property interests. Council Member Peotter pointed out that the project is not only to replace existing water lines, but also install new lines; the design is an alternate to the Water Master Plan; and the amount of the current Capital Improvement Plan (CIP) is less than the project amount. He expressed support for the project, but concern with coordination between utilities and engineering. He suggested Council consider forming some type of utilities committee to focus on these details. City Manager Kiff and Public Works Director Webb apologized for the confusion and reported that it made more sense to install a new water line system on Balboa Island to satisfy some of the requirements of the Water Master Plan, the new lines would assist in solving some of the fire flow issues, and the funding comes from next year's budget to advance the project. Motion by Council Member Peotter, seconded by Council Member O'Neill, to a) find this project exempt from the California Environmental Quality Act) pursuant to Sections 15302 (replacement of existing facilities involving negligible 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) approve Budget Amendment No. 18BA-020 appropriating $1,574,200.00 from the unappropriated Water Capital Fund balance to Account No. 70201931-980000-16W11; d) award Contract No. 7173- 1 to T.E. Roberts, Inc. for the total bid price of $1,563,400.00, and authorize the Mayor and City Clerk to execute the contract; and e) establish $156,000.00 (approximately 10 percent) contingency amount to cover the cost of unforeseen work not included in the original contract. 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 Herdman Volume 63 - Page 410 City of Newport Beach Study Session and Regular Meeting November 28, 2017 XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS David Tanner pointed out the State has made amendments to the California Environmental Quality Act (CEQA) guidelines and asked the City to consider them in combination with the 20 bills for accessory dwelling units and affordable housing. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None XIX. CURRENT BUSINESS 20. Approval of Professional Services Agreement with Anchor QEA, LLC for Sediment Testing to Support Future Maintenance Dredging within the Lower Bay Federal Channels (C-8534-1) [381100-2017] Motion by Council Member Herdman, seconded by Council Member Dixon, to a) determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; b) approve a Professional Services Agreement with Anchor QEA, LLC for Lower Bay sediment sampling services at a not -to -exceed fee of $422,200.00, award the Agreement pursuant to a single source justification, and authorize the Mayor and City Clerk to execute the Agreement; and c) approve Budget Amendment No. 18BA-022 appropriating $202,305.00 from Tidelands Capital Fund unappropriated fund balance to Account No. 10101- 980000-181-107. The motion carried by the following roll call vote: Ayes: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - Adjourned at 7:55 p.m. in memory of Gay Wassall-Kelly The agenda was posted on the City's website and on the City Hall electronic bull in card located in the entrance of the City Council Chambers at 100 is Cent ive on November 22, 2017, at 4:00 p.m. Kevin Mayor Volume 63 - Page 411