HomeMy WebLinkAbout07/10/2018 - Study Session / Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Study Session and Regular Meeting
July 10, 2018
I. ROLL CALL - 4:00 p.m
Present: Council Member Brad Avery, Council Member Diane Dixon, Council Member Jeff
Herdman, Council Member Kevin Muldoon, Council Member Scott Peotter, Mayor Pro Tem
Will O'Neill, Mayor Duffy Duffield
II. CURRENT BUSINESS
SS1. Clarification of Items on the Consent Calendar - None
SS2. Friends of the Newport Beach Animal Shelter (FONBAS) — One Year Update
Tim Stoaks, President of the Friends of the Newport Beach Animal Shelter, displayed a video
and explained how the nonprofit organization created a public/private partnership with the
City last year. He described FONBAS and its outreach programs, and reported they were
able to raise $50,000.00 through board member and citizen contributions to assist with
additional medical costs, special cages, and to provide scholarships for those interested in
going into the veterinarian medicine vocation. Mr. Stoaks thanked Council Member Dixon,
Police Department Animal Control staff, and Police Chief Lewis.
Council Member Dixon echoed Mr. Stoaks' appreciation to City staff, congratulated FONBAS
for their fundraising efforts, and commented on how successful this public/private
partnership has been.
In response to Council Member Dixon's comments, Mr. Stoaks announced that FONBAS is
currently in a position to facilitate a capital campaign to eventually purchase the shelter
property rather than continue to lease it.
SS3. FEMA Flood Plain Update
Community Development Director Jurjis and Deputy Community Development Director
Ghosn utilized a PowerPoint presentation to compare the 2016 and 2018 flood zone map, and
discuss the Open Pacific Coast Study and the affects the study has on property values,
development, and flood insurance premiums. He announced that FEMA is accepting the
City's results, which reduces the number of properties in the flood zone. However, he noted
the Junior Lifeguard headquarters would now fall within the new flood zone.
In response to Council questions, Community Development Director Jurjis indicated the
revised 2018 map includes a combination of properties on West Balboa Island that have been
rebuilt and raised above the flood line and those that have naturally fallen out of the flood
zone and explained how the City tracks ground elevations and height certificates, and what
residents can do to prove their properties are not in a flood zone, including hiring a surveyor
or civil engineer. Deputy Community Director Ghosn indicated several factors that went into
the decision for the City to reevaluate the FEMA study, noting the past FEMA imaging
surveys used a much lighter imaging that only assumed elevation of the ground and
neglected seawalls. He reported on the studies and modeling the City did that ultimately
were found to be acceptable by FEMA. Regarding berms the City erects during the winter
season, Deputy Community Development Director Ghosn indicated transient structures
were not considered barriers by FEMA. Discussion further ensued regarding the impact of
storms, wave height, seawalls, storm drains, storm surges, conduits and the 1% chance a
flood will happen, which is what FEMA takes into account when analyzing flood areas.
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Community Development Director Jurjis confirmed that, even though the City knows the
time of year when flood events occur, FEMA still considers that too unpredictable and does
not consider that when evaluating flood zones. He reported the increased height and
strengthening of the Balboa Island seawall was not taken into account for the current FEMA
study, but once the current maps are finalized, staff can bring that request back to the City
Council for further evaluation.
Ying Poon, Vice President of Everest International Consulting, indicated that the flooding on
Balboa Island is due to the areas' low level of elevation and the openings at the ferry and
Collins Island bridge. He confirmed that the raising of the seawall will help in many areas,
but not at those locations. Community Development Director Jurjis added that capping has
not fixed the flooding issues at the openings of the ferry and bridge.
Council Member Dixon commended staff, the consultant, and the City Council that
authorized the reevaluation.
Council Member Avery emphasized that residents choose to live here and also need to take
responsibility, as the City cannot protect every homeowner from every event.
Community Development Director Jurjis thanked the City Council for its support, recognized
everyone involved in the process, and noted there will be continued discussion of the financial
aspects of the changes. He indicated, due to the updates, there will be approximately a
$10 million savings per year in insurance since 2,700 properties were removed from the flood
zone, but stressed that there could be 1,000 property owners on the Balboa Peninsula that
may now have to pay flood insurance.
Jim Mosher asked if the City would be responsible for floodwater damage to a resident's
property if it confirms with the homeowner that the property is not in a flood zone and does
not need insurance prior to any damage, and questioned the flooding areas listed in Item 8
(Marine Avenue Storm Drain Pump Station and Drainage Systems Design). Community
Development Director Jurjis displayed the hydraulic map, confirmed the typical flooding
areas, and indicated the flooding is due to fresh water/street water.
Council Member Herdman cautioned that the Community Development Department might
be getting phone calls from those needing proof that they no longer need flood insurance and
suggested they prepare a response. Community Development Director Jurjis indicated that
the department, utilizing the Geographic Information System (GIS), would be happy to work
with the homeowners and issue a letter to the state with the City's findings, but pointed out
the requirement to have flood insurance ultimately is a decision between the resident and
their mortgage company.
Council Member Muldoon added that this action is due to the City responding to federal
standards, not the City putting standards on the citizens. He commended staff for being
successful in showing data that FEMA was overly ambitious in its results.
SS4. Life Safety Services and Other Fee Study Updates
Community Development Director Jurjis and Senior Accountant Schweitzer utilized a
PowerPoint presentation to discuss the fee study methodology, including authority for cost
of service fees, the fees for service methodology, fee calculation procedures, report on how
Community Development is involved in the fee study process regarding fire prevention,
indicated there are fees for development and operational costs to recover staff time, and
detailed how the fees are being calculated and the costs to make an appeal.
In response to Council questions, Senior Accountant Schweitzer confirmed that City subsidy
fees are paid by the general fund. Community Development Director Jurjis explained why a
fire engine must be used for inspections versus another, less expensive City vehicle, indicated
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the increase in the fees for operational permits will not eliminate or decrease the City's
subsidies, and noted there are companies that do this type of work but since it is state
mandated, the City prefers to have fire personnel do the safety inspections rather than
contract out to a third party or put the burden on the property owner.
Mayor Pro Tem O'Neill expressed concerns with implementing an automatic Consumer Price
Index (CPI) increase as it may take away any incentive to review the fees to find those that
could be decreased or eliminated. He recommended requiring each fee be reviewed on an
annual or biennial basis and requested including review of municipal code violation fines.
Council Member Peotter believed, since the City is already paying fire personnel to be on
duty, conducing inspections during down times could be looked at as a partial fee recovery.
He requested a Building Industry Association (BIA) report on how the City's fees compare to
surrounding jurisdictions and suggested Building and Fire Board of Appeals appeal fees be
refunded to the appellant if they are successful.
In response to Council Member Peotter's question, Community Development Director Jurjis
indicated that the progressive fee structure utilized to calculate tenant improvement per unit
inspection costs does not work for commercial projects, and therefore a flat fee is used.
Adam Wood, BIA, thanked staff for their hard work, discussed comparisons from surrounding
jurisdictions, highlighted changes to the proposed fees, and indicated BIA is requesting the
fees be phased in since it can take some time for all members to be informed of the changes.
Jim Mosher questioned if the amount listed in Item 4 (Medi -Cal Managed Care Rate Range
Intergovernmental Transfer (IGT) Program) regarding recovering costs for ambulance
transportation is the recovery cost or subsidy cost, and asked about the change in the way
the City is charging for Coastal Development Permit fees. He agreed with refunding appeal
fees to successful appellants, asked if Council should be charging appeals fees related to
Coastal Development Permits, and believed the percentages in the cost recovery table are
difficult to understand.
III. PUBLIC COMMENTS
Jim Mosher took issue with how the City Council is handling the appointment of the next City
Manager, pointed out a provision in the City Charter related to the City Manager recruitment, and
discussed Proposition 59.
City Attorney Harp indicated that Item IV.A. would not be discussed at this meeting and
reported the City Council would adjourn to Closed Session to discuss the remaining items
as listed in the Closed Session agenda and read the titles.
IV. CLOSED SESSION
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 Negotiators.
Employee Organizations: Newport Beach Lifeguard Management Association (NBLMA);
Newport Beach City Employees Association (NBCEA); Newport Beach Firefighters Association
(NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Police
Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach
Professional and Technical Employee Association (NBPTEA); Newport Beach Employees League
(NBEL); Part Time Employees Association of Newport Beach (PTEANB); and Association of
Newport Beach Ocean Lifeguards (ANBOL).
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B. CONFERENCE WITH LEGAL COUNSEL
ANTICIPATED LITIGATION - INITIATION OF LITIGATION
(Government Code § 54956.9(d)(4): 1 matter
C. CONFERENCE WITH LEGAL COUNSEL
EXISTING LITIGATION
(Government Code § 54956.9(d)(1)): 1 matter
Merik J. Migliore, etc. u. City of Newport Beach, et al.
Orange County Superior Court, Central Justice Center
Case No. 30-2014-00720608-CU-CR-CJC
D. PUBLIC EMPLOYEE APPOINTMENT
(Government Code § 54957 (b)(1)): 1 matter
Title: City Manager. The City Council will consider all matters authorized by Government Code
Section 54957 (b)(1) related to the appointment of a new City Manager; however, the City Council
will not be appointing a new City Manager at this meeting.
E. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Government Code § 54957 (b)(1)): 2 matters
Title: Leilani I. Brown, City Clerk
Title: Aaron C. Harp, City Attorney
F. CONFERENCE WITH LABOR NEGOTIATOR
(Government Code § 54957.6 (a)): 2 matters
Agency Designated Representative: Marshall "Duffy" Duffield, Mayor
Unrepresented Employee: Leilani I. Brown, City Clerk and Aaron C. Harp, City Attorney
V. RECESSED - 5:20 p.m.
VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
VII. ROLL CALL
Present: Council Member Brad Avery, Council Member Diane Dixon, Council Member Jeff
Herdman, Council Member Kevin Muldoon, Council Member Scott Peotter, Mayor Pro Tem
Will O'Neill, Mayor Duffy Duffield
VIII. CLOSED SESSION REPORT - None
IX. INVOCATION - Council Member Peotter
X. PLEDGE OF ALLEGIANCE - Council Member Dixon
XI. NOTICE TO THE PUBLIC
XII. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEM)
Council Member Avery:
• Attended the 41h of July is for Families Balboa Peninsula Bike Parade and Community Festival,
and the Mariners Park Independence Day Parade
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• Announced the July 12, 2018 Water Quality/Coastal Tidelands Committee meeting has been
canceled, but the next meeting is scheduled for August 2, 2018
Council Member Dixon:
• Attended the 4eh of July is for Families Balboa Peninsula Bike Parade and Community Festival,
and the 4th anniversary memorial events for Lifeguard Ben Carlson on July 6, 2018
• Participated in a ride -along on July 4th with Police Chief Lewis
• Announced Orange County Sheriff Sandra Hutchens would be the guest speaker at the Speak
Up Newport meeting on July 11, 2018
Mayor Pro Tem O'Neill:
• Attended the 4th of July Mariners Park Independence Day Parade
• Announced the next Concert on the Green on July 15, 2018
Mayor Duffield:
• Attended the 4th of July Mariners Park Independence Day Parade
• Commended Rick Caruso for his firework displays over the years
XIII. PUBLIC COMMENTS ON CONSENT CALENDAR - None
XIV. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the June 26, 2018 City Council Meeting [100-20181
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.
ORDINANCES FOR ADOPTION
3. Creation of a Harbor Department - Second Reading of Ordinance Nos. 2018-10 and
2018-111100-20181
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) Adopt Ordinance No. 2018-10, An Ordinance of the City Council of the City of Newport Beach,
California, Creating a Harbor Department and Folding the Harbor Resources Division into
the Engineering Services Division of the Public Works Department; and
c) Adopt Ordinance No. 2018-11, An Ordinance of the City Council of the City of Newport Beach,
California, Amending the Title and Introductory Table of Chapter 2.12, Section 2.12. 010 and
Adding Section 2.12.120 to Title 2 of the Newport Beach Municipal Code, Pertaining to the
Harbor Department.
Mayor Duffield recused himself on Item 3 due to business interest and source of income
conflicts.
RESOLUTION FOR ADOPTION
4. Removed from the Consent Calendar
CONTRACTS AND AGREEMENTS
5. Notice of Completion for Fire Station No. 6 Apparatus Bay Replacement - Contract
No. 6422 (Project No. 16F11) [38/100-2018]
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a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the
project. On June 13, 2017, City Council found this action exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15302 (Replacement or
Reconstruction);
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of
Completion has been recorded in accordance with applicable portions of the Civil Code; and
c) Release Faithful Performance Bond one (1) year after acceptance by the City Council.
6. 2017-2018 Streetlight Improvement Project - Award of Contract No. 6269 (17V02)
[38/100-2018]
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15302(c) (replacement of existing facilities involving negligible
expansion of capacity) of the CEQA Guidelines because this action will not result in a
physical change to the environment, directly or indirectly;
b) Approve the project drawings and specifications;
c) Award Contract No. 6269 to Elecnor Belco Electric, Inc. for the total bid price of $478,015.00
and authorize the Mayor and City Clerk to execute the contract; and
d) Establish and encumber a $48,000.00 (approximately 10 percent), contingency amount to
cover the cost of unforeseen work not included in the original contract.
Council Member Muldoon recused himself on Item 6 due to real property interests.
7. Geotechnical and Material Testing Services - Approval of On-call Professional
Services Agreements [38/100-2018]
a) Determine that 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 it will not
result in a physical change to the environment, directly or indirectly; and
b) Approve four separate on-call Professional Services Agreements with GMU Geotechnical (C-
8087-2), Group Delta (C-8561-1), Geocon West (C-7145-2), and American Geotechnical (C-
8562-1) for geotechnical and material testing services at a not -to -exceed amount of $300,000
per agreement, and authorize the Mayor and City Clerk to execute the agreements.
8. Marine Avenue Storm Drain Pump Station and Drainage Systems Design - Approval
of Professional Services Agreement (C-8563-1) (Project No. 19D12) [38/100-2018]
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) Approve a Professional Services Agreement with PACE of Fountain Valley, California, for
Marine Avenue Storm Drain Pump Station and Drainage project at a not -to -exceed price of
$395,300.00, and authorize Mayor and City Clerk to execute the Agreement; and
c) Approve Budget Amendment No. 19BA-002 transferring $145,300.00 from Account
No. 01201926-980000-19D11 (Balboa Island Drainage Master Plan) to Account 01201926-
980000-19212 (Marine Avenue Drainage System Improvements).
Council Member Herdman recused himself on Item 8 due to real property interests.
9. Concrete Street Pavement Reconstruction Project Design - Approval of Professional
Services Agreement (C-7184-1) (18R21) [38/100-2018]
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 PENCO Engineering, Inc. of Irvine,
California, for the Concrete Street Pavement Reconstruction Project at a not -to -exceed price
of $150,700.00, and authorize the Mayor and City Clerk to execute the Agreement.
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10. Professional Services Agreement with Environmental Science Associates for
Environmental Services for a Proposed 275 -Room Hotel Project Located at the
Newport Dunes Resort (C-8564-1) (PA2016-175) [381100-20181
Continued to a future meeting.
MISCELLANEOUS
11. Temporary Suspension of a Portion of City Council Policy B-17, Parks, Facilities and
Recreation Program Donations [100-2018]
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) Temporarily suspend until further action by the City Council, the acceptance of, and action
on, any applications for donations of trees, benches or other tangible street or park furniture
as allowed for in City Council Policy B-17, Parks, Facilities and Recreation Program
Donations.
Motion by Mayor Pro Tem O'Neill, seconded by Council Member Herdman, to approve the
Consent Calendar, except for the item removed (Item 4); and noting the recusal by Mayor Duffield
on Item 3, recusal by Council Member Muldoon on Item 6, and recusal by Council Member Herdman
on Item 8.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Muldoon, Council Member Dixon, Council
Member Peotter, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Duffield
XV. ITEM REMOVED FROM THE CONSENT CALENDAR
4. Medi -Cal Managed Care Rate Range Intergovernmental Transfer (IGT) (C-8085)
[38/100-20181
Council Member Peotter reviewed the amounts paid and received by the City over the past years,
explained how the program works, reiterating that the City may receive a refund but it is
required to provide the money in advance, and noted he previously voted against this program.
Motion by Council Member Peotter, seconded by Mayor Pro Tem O'Neill, to 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) adopt Resolution No. 2018-53,
A Resolution of the City Council of the City of Newport Beach, California, Authorizing the City
Manager, or Designee, to Execute Agreements with the Department of Health Care Services
(DHCS) and CalOptima to Participate in the FY 2017-2018 Medi -Cal Rate Range
Intergovernmental Transfer (IGT) Program; and c) approve Budget Amendment No. 19BA-001
appropriating $273,017 from the General Fund unappropriated surplus fund balance to the
Medi -Cal IGT account 01040404-821008 and to increase revenue estimates by $574,282 in the
Medi -Cal IGT account 01040404-431246 of the Fire Department.
In response to Council comments, City Manager Kiff agreed that there is some risk with
participating in the program and confirmed that the City has received more than its
contributions back every year so far. He believed there is no reason why that would not continue
into the future.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Muldoon, Council Member Dixon, Council
Member Peotter, Council Member Avery, Mayor Pro Tem O'Neill, Mayor Duffield
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XVI. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Susan Skinner discussed democracy and her concerns about how the direct argument for the
November 2018 ballot measure was selected. She believed the political action committee that
submitted the direct argument against the measure (Newporters for Ethical Government) is not a
bona fide association of citizens and the argument should not have been accepted.
Greg Mohr, Gondola Adventures, displayed a slideshow and indicated his business will need to
permanently vacate its current location due to remodeling by the new owner.
Elisa Mohr, Gondola Adventures, displayed a slideshow, explained their need for community
assistance in helping them relocate, and listed some of the positive things the business does for the
community, such as employ local young people and utilize local restaurants and florists for their
cruises.
XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES — None
XVIII. PUBLIC HEARING
12. Resolution No. 2018-54, Modifying the Newport Beach Tourism Business Improvement
District's Management District Plan [100-2018]
Mayor Duffield recused himself on Item 12 due to business interest and source of income
conflicts.
Mayor Pro Tem O'Neill opened the public hearing.
Jim Mosher expressed concern with a non-profit organization, like Visit Newport Beach,
supplying for-profit sales employees to the hotels and took issue with the process to add a
business to the Newport Beach Tourism Business Improvement District.
Hearing no further testimony, Mayor Pro Tem O'Neill closed the public hearing.
Deputy City Manager Finnigan requested the portion of sentence that reads, "...direct the City
Clerk to record a notice and assessment diagram" be removed from page 12-3, and "Marking" be
changed to "Marketing" in Resolution No. 2018-54, Section 5.
Council Member Dixon emphasized the importance of the hospitality industry to the City.
Motion by Council Member Dixon seconded by Council Member Herdman, to
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) adopt amended
Resolution No. 2018-54, AResolution of the City Council of the City of Newport Beach, California,
Amending the Management District Plan of the Newport Beach Tourism Business Improvement
District.
The motion carried by the following roll call vote:
Ayes: Council Member Herdman, Council Member Muldoon, Council Member Dixon, Council
Member Peotter, Council Member Avery, Mayor Pro Tem O'Neill
Recused: Mayor Duffield
XIX. MOTION FOR RECONSIDERATION - None
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Study Session and Regular Meeting
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XX. ADJOURNMENT - 7:31 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
July 5, 2018, at 4:00 p.m.
Leilani I. Brown
City Clerk
`_PORTO
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Marshall " fy" Muffield
Mayor