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HomeMy WebLinkAbout10/26/1987 - Regular MeetingPrebTiit Motion All Ayes Motion All Ayes • • CITY OF NEWPORT BEACH COUNCIL MEME X x x x x x x x x MINUTES REGULAR COUNCIL MEETING PLACE: Council Chambers TIME: 7:30 P.M. DATE: October 26, 1987 Mayor Cox presented a Proclamation recognizing November, 1987, as United Way Month; and received a Proclamation signed by President Ronald Reagan, recognizing Saturday, October 24, 1987, as United Nations Day. A. ROLL CALL. B. Reading of the Minutes of Meeting of October 12„ 1987, was waived, approved as written„ and ordered filed. C. Reading in full of all ordinances and resolutions under consideration was waived, and City Clerk was directed to read by tittles only. D. HEARINGS: 1. Mayor Cox opened the continued public Cannery Vlg hearing regarding the formation of Asmt Dist PROPOSED ASSESSMENT DISTRICT 87 -1 87 -1 (CANNERY VILLAGE IMPROVEMENTS): 1(68) Fi_ �j, 2. Continued public hearing regarding the IMcFadden formation of PROPOSED ASSESSMENT Sq Asmt DISTRICT 87 -3 (MCFADDEN SQUARE Dist 87 -3 IMPROVEMENTS); and selection of restroom (68) alternative: for Newport Pier; l ZP1 3. PROPOSED PROJECT PRIORITIES. 1. Reports from the Planning, and Public Works Departments, were presented. The City Council was advised that additional correspondence was rieceived after the agenda was printed from Eileen Rapp, Ray and Charlott Jackson,] Cannery Village Realty, and Garnet McCulloch. The City Manager commented that this was the fourth public hearing on the subject project, and introduced Chris Gustin, Senior Planner, Advanced Planning Division, who offered the following information from the staff report: Assessment District 87 -1): The improvement plans and cos estimates for the Cannery Village area include the repair of all damaged and deteriorated curbs, gutters, and sidewalks; the installation of these facilities where they currently do not exist; Volume 41 - Page 390 COUNCIL MEMBERS y IN\p\ Ct �9G • CITY OF NEWPORT BEACH MINUTES October 26, 1987 the installation of concrete alleys where they currently do not exist and the upgrading of the sewer laterals in the reconstructed alleys; the preparation of plans and cost estimates for the installation of streetlights; the estimated cost of acquiring the land at the southwest corner of 30th Street and Villa Way for a public parking lot; and the widening of the sidewalk along the westerly side of Villa Way. In regard to the repair of the damaged and deteriorated curbs, gutters, sidewalks, and streets, it is the policy of the City, that all repairs and improvements to existing facilities is the financial responsibility of the City; and those cases where these facilities do not exist, it is the adjoining property owner that is responsible for the installation cost. Staff suggests the necessary repairs be performed at the sole expense of the City, with the installation of the new facilities where they do not exist funded pursuant to the provisions of Chapter 27 of the Improvement Act of 1911. This procedure has been used successfully on several occasions by the City, and is currently being used to install the necessary improvements on 31st Street between Newport Boulevard and Villa Way. The necessary repair work in Cannery Village is estimated at a cost of approximately $327,749, including a 20% contingency; the cost of installing 268 parking meters throughout the area (including 47 meters in the proposed public parking lot) is estimated to be an additional $61,104; the property owners' cost for installing curbs, gutters, and sidewalks, where they currently do not exist, is estimated to be approximately $102,834, including a 20% contingency. The areas where these facilities need to be installed include: Volume 41 - Page 391 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS CITY OF NEWPORT BEACH October 26, 1987 MINUTES Cannery Vlg1 McFdn Sq Asmt Dists Block 1: Northwest corner of 30th Street and Villa Way - 417 30th Street, 418 -430 30th Street; Block 2: 504 30th Street Block 5: North side of 29th Street between Newport Blvd. and Villa Way; South Side of 29th Street between Newport Blvd. and Villa Way; Block 7: Villa Way between 28th and 29th Streets, exclusive of City funded extra width; and Block 10: West side of Villa Way between 28th Street and the first alley. Another component of the Specific Area Plan Public Improvement Component is the construction of a public parking facility in Cannery Village, and staff has been negotiating with the property owner for the acquisition of 5.5 lots at the southwest corner of Villa Way and 30th Street to create a public parking facility that will accommodate 47 • metered parking spaces. These spaces will provide replacement parking for the spaces lost as a result of the restriping of Newport Boulevard to provide a third outbound travel lane, plus additional capacity to meet the existing shortage of parking in the area. The estimated cost for acquisition of the land is approximately $1,000,000; the cost of demolishing the existing buildings and creating a surface parking lot is estimated to be $200,000; and the total estimated cost is approximately $1.2 million. There are two financing alternatives for the parking facility: 1) Involves using a portion of the money available in the Off- Street Parking Fund as a down payment for the property, with the revenues from the • parking meters in the Cannery Village area used to service Volume 41 - Page 392 Cannery Vlg1 McFdn Sq Asmt Dists COUNCIL MEMBERS aG CITY OF NEWPORT BEACH October 26, 1987 MINUTES Cannery Vlg/ McFdn Sq Asmt Dists the remaining debt (e.g., if $500,000 were to be used as the down payment, a balance of $700,000 would remain, and • over a five year term at an interest rate of 7.25%, the annual payment would be $171,868); and 2) Involves the financing of the entire $1.2 million over a ten year period, with no down payment (the anticipated annual payments would be approximately $191,500). There are currently 58 meters within the immediate vicinity of Cannery Village, and it is proposed that approximately 221 meters be installed throughout the area in conjunction with the various repair and installation projects. The proposed public parking facility will accommodate 47 new spaces, for a total of approximately 326 metered spaces in the area, with sufficient revenue generated from the existing and new parking meters in the Cannery Village area to support this debt service. Villa Way sidewalk widening, would involve widening the sidewalk along the westerly side of the street from 28th Street to 29th Street to a width of eight feet, and to six feet from 29th Street to 32nd Street to create a pedestrian walkway through the center of Cannery Village. There are no sidewalks between 28th and 29th Streets, and the existing sidewalks between 29th and 32nd Streets are approximately 3k feet wide, which does not provide sufficient width for two people to walk side -by -side. It should be noted that this sidewalk widening will not result in the loss of the parking spaces along the easterly side of Villa Way between 29th and 32nd Streets. It is suggested that the sidewalk widening be paid for by the City because of the overall improvement • to the area in terms of aesthetics and pedestrian circulation and Volume. 41 - Page 393 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS • • r: CITY OF NEWPORT BEACH MINUTES October 26, 1987 safety. It is also suggested that the wide area at the corner of 32nd Street and Villa Way be improved with a small pedestrian oriented area with landscaping and benches. Where the sidewalks have not been installed along the westerly side of Villa Way between 28th and 29th Streets, it is suggested that the property owners be required to pay for that portion of the sidewalk cost equivalent to the installation of a 5 foot wide sidewalk, with the City paying the additional cost for the wider sidewalk. It is estimated that this project, excluding the resurfacing of the street and the installation of the curbs;, gutters, and sidewalks where they currently do not exist, (which are included in the cost estimates for the overall Cannery Village Improvements) will cost approximately $54,842 including a 20% contingency. This estimated cost does not include any landscaping, which would be a desirable component of the widening project. Two tree wells with steel grates and trees could be installed in each block, at an additional cost of approximately $1,200 each, or an additional $16,000 for a total of $71,642. With :regard to Cannery Village streetlights, it is estimated that 46 streetlights would be adequate to provide lighting in the Cannery Village area to improve safety and visibility at night. The street lights suggested have a "turn of the century" appearance and will cost .approximately $2,500 each to install. It is suggested that petitions be distributed to the property owners to determine if there is support in the area to establish a Streetlight District pursuant to the Streetlight Act of 1919 to fund the installation of the lights. Based upon approximately 161 lots in the area, and a projected cost of $115,000, a rough estimate of the individual assessment would be approximately $715 per lot. Volume 41 - Page 394 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS �Gyy • • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 With regard to Council's question as to, when the staff could expect the appraisal for the parking facility, Mr. Gustin stated that it is expected any day now from the City's appraiser. Mayor Cox invited testimony from those people in the audience on just the Cannery Village project. Jack Williamson, property owner on 31st Street, addressed the Council, and asked if those property owners on the south side of 31st Street, Villa Way, and Newport Boulevard, who have already paid for putting in concrete alleys, will be assessed for concreting alleys elsewhere in Cannery Village. The City Manager stated "no." The basic premise is that once the work has been done to City specifications and paid for by the property owner, it is the City's responsibility to repair and properly maintain said areas, and those adjoining property owners who have already been aassessed and have paid for the improvements will not be assessed again. Mr. Williamson also asked if the City has scheduled, and is to assume the street repair on Newport Boulevard and Villa Way on 31st Street. The Public Works Director stated that this is addressed in a later public hearing on tonight's agenda, wherein Council will be asked to authorize staff to advertise for bids on the subject project. lie further added that the City will fund the repair and reconstruction of the street, and the property owner will be assessed only for the streets and sidewalks that have not been constructed. Mr. Williamson remarked that he was one happy and satisfied citizen regarding the foregoing information. Frank Trane, 2018 E. Bayfront, representing St. James Church (owner of the property identified as the Bank of Newport) stated that they were opposed to Assessment District 87 -1, and was not familiar with the 1919 Streetlighting Act. Volume 41 - Page 395 y Vlg/ Sq Diets OUPICIL MEMBERS • • • CITY OF NEWPORT BEACH October 26, 1987 The City Manager explained that the recommendation before the City Council tonight, is to abandon the multi- purpose district (87 -1), and then do the work with a single- purpose district, under the 1919 St:reetlighting Act, which requires a petition with the majority of resident's signatures in favor of the formation of the assessment district. Bob Roubian (owner of the Crab Cooker) addressed the Council, stating that the cries for parking have finally been met with the new 47 car parking facility, and he complimented staff and the Council. 1[e added that he would like to see a plan to acquire some additional lots now for a deck in the area to be paid for with assessments, and maybe 3, 5 or 10 years down the road, another 40 car parking; area above the proposed 47 car parking; facility. Tony Shepardson, resident of 31st Street, addressed the Council and read a letter from the Ray Jacksons, property owners of lots 418, 420, 510 and 512, 31st Street: who could not attend tonight's meeting, who wanted to let the Council know that they had attended previous meetings on Cannery Village, and, who are completely in favor of the proposed improvements. Mr. Shepardson, stated he, personally, feels that the Cannery Village area has been neglected, and that City staff has worked very hard, as well as the property owners to improve safety and the environment with the new curbs, sidewalks, and gutters. Dorothy Doan, 633 Lido Park Drive, addressed the Council, and stated that she, too, is in favor of the long awaited improvements to Cannery Village. She added that the restaurants need the streetlights with the ambience they will give to the area, as well as the sidewalks, curbs, and gutters for safety. She thanked City staff for their time and effort, and urged the Council to approve the project. Council Member Strauss commented that in the past, }se, as well as the Lido Isle Community Association, was not in favor of what was proposed at the time; one of the reasons being the impingement by Lido Marina Village tenants, and loss of parking. Ile stated that he is in favor of the proposed plan and indicated his support. Volume 41 - Page 396 ry Vlt/ Sq Dists COUNCIL MEMBERS 0 • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 Chris Gustin, Senior Planner, Advanced Planning Division, presented the following :from the staff report regarding McFadden Square Improvements: McFadden Square Improvements: As a result of the Public Works Department's survey of the curbs, gutters, sidewalks, streets and alleys in the commercial areas of McFadden Square, pursuant to the direction of the City Council, two levels of priority were established: Priority A - Identifies those repairs that are necessary from a public safety standpoint; and involves only the repair to the existing deteriorated curbs, gutters, sidewalks, and streets. The cost for performing all of the Priority A repair work is approximately $486,082, including a 20% contingency. As indicated previously, it is the policy of the City that all maintenance and repair work to existing facilities is the responsibility of the City. Priority B - Identifies those repairs that would benefit the aesthetics of the area; and the estimated cost of the Priority B work is approximately $717,420, including a 20% contingency. The total anticipated cost of repairs that are the responsibility of the adjoining property owners is $2,926, and are itemized below (because of the limited amount of work required, no contingency was added and because these repairs are so minor in nature, the property owners may elect to perform these repairs independent of any City action): Block 46: Cost to repair brick parkway at: 2300 Newport Blvd. - $1,000; 2312 Newport Blvd. - $750; 2318 Newport Blvd. - $378. Volume 41 - Page 397 Cannery Vlt/ McFdn Sq Asmt Dists COUNCIL MEMBERS CITY OF NEWPORT BEACH October 26, 1987' MINUTES Cannery Vlg/ McFdn Sq Asmt Dists Install drive approach at 2011 Court Street - $348; and repair custom bricks at Dorymen's Inn - $450. McFadden Square Streetlights It is estimated that approximately 34 streetlights will be adequate to provide sufficient lighting in the McFadden Square area, with lights installed across West Ocean Front to end of the Parking lot, on 21st, 22nd, and 23rd Streets, and along Balboa Boulevard, into the McFadden Place area. The Light fixtures proposed (similar to that now in front of the Dorymen's Inn) are estimated to cost approximately $4,000 each, installed for a total of $136,000 (streetlights in the parking lots and plaza are not included in this project). 1:t is suggested that the installation of streetlights in McFadden Square be funded through a 1919 Streetlight District. It is suggested that staff be directed to distribute petitions to the property owners to determine if support for this project exists in the area. It is also suggested that the boundaries of the Streetlight District be limited to those specific areas where lights are proposed to be installed, which are generally between Balboa Boulevard and the Ocean Front, and between McFadden Place and 23rd Street. Based upon an estimated 60 lots in the area, a rough estimate of the individual assessment is approximately $2,266 per lot. McFadden Square Plaza - Involves the replacement of the public restroom facility at the base of the pier, and • the reconstruction of the plaza at the base of the pier. Volume 41 - Page 398 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS �O • • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 Regarding the public restroom facility, the City Council has directed Staff to prepare two conceptual alternative designs, with the location to be seaward of the existing :facility between the pier and the Dory Fleet. It is likely that the Dory Fleet will have to be moved a short distance to the west. The proposed improvements to the plaza at the base of the pier has also generated considerable discussion. Staff and the Consultant have prepared two conceptual plans for the plaza area. These two plans are essentially the same from a design standpoint, with Alternative One resulting in no loss of parking, and Alternative Two resulting in the loss of approximately 15 parking spaces. The estimated cost of the complete reconstruction of the plaza is estimated to be approximately $700,000; and the cost of the individual components are as listed: Demolition /Grading $ 88,000 Concrete Paving 330,000 Curbs 72,000 Lighting 24,000 Landscaping 76,000 Furniture 10,000 Contingency 8 Assessment —0— Engineering 100,000 TOTAL $700,000 In order to provide an opportunity for those supporters of the plans to completely reconstruct the plaza and install the extensive landscaping and other amenities, it is suggested that they be given the opportunity to general support among themselves for the funding through a separate single — purpose assessment district. Staff could be directed to provide the supporters with the petitions, and at such time as the requisite majority of property Volume 41 — Page 399 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS .�,G\0\ O� 9di CITY OF NEWPORT BEACH October 26, 1987 MINUTES Cannery Vlg/ McFdn Sq Asmt Dists owners have signed the petitions, the district could be formed. This option will also allow for the supporters • to return to the City with a design different from those prepared by the staff and consultant if they desire. the concept essentially is to give the supporters the opportunity to determine what :Level of improvement they are willing to fund, and how much they are willing to assess themselves. It is then suggested that the City contribute one -half of the total cost of the project, up to a maximum of $350,000, whichever is less. In the event that the property owners do not generate sufficient support for the funding of the project through an assessment district, it is suggested that the City rehabilitate the plaza area without the installation of the extensive amenities. It Is estimated that the cost of restoring the area to City standards is approximately $150,000. West Ocean Front Parking Lot - I'nvolves the reconstruction of the West Ocean Front parking ].or. This project originally involved the installation of extensive landscaping and other amenities, all of which was to be funded as a part of Assessment District 87 -3. Several of the property owners voiced concerns regarding both the proposal to fund the Improvements through an assessment district and the extensive landscaping, which was considered to be an impediment to the ocean views. I.n response to those concerns, . staff suggests that the City Council consider only the reconstruction of the lot in Its existing configuration, Volume 41 - Page 400 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS �� G4p� 9 46 • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 with no new landscaping and no loss of parking, and that this project be funded by the City. It is estimated that the reconstruction, including resurfacing and striping, will cost approximately $103,000. Staff has reviewed the various financing options available for the construction of the curbs, gutters, and sidewalks that are to be installed where they currently do not exist in Cannery Village, and the repair work to the nonstandard improvements in the parkways and the new drive approach on Court Street in McFadden Square. Staff is of the opinion that the appropriate financing mechanism is the use of Chapter 27 of the Improvement Act of 1911, as this process does not involve the sale of bonds and has been used successfully in other areas of the City, and summarized the improvement costs, as follows: Cannery Village Repairs and Installations: City $388,853 Property Owners 102,834 Villa Way Sidewalk Widening w /Landscaping: City $ 71,642 Property Owners -0- Cannery Village Street Lights: City $ -0- Property Owners 115,000 Cannery Village Parking Structure: City $1,200,000 Property Owners -0- CANNERY VILLAGE TOTALS: City $1,660,495 Property Owners $217,834 Volume 41 - Page 401 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS GpZ ,.. ,���9 • • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 McFadden Square: McFadden Square Repairs - City $486,082 (A) 617,470 (B) Property Owners 2,926 McFadden Square Plaza - City $350,000 Property Owners 350,000 McFadden Square Restroom - City $500,000 Property Owners -0- West Ocean Front Parking Lot Refurbishing - City $103,000 Property Owners -0- McFadden Square Streetlights - City -0- Property Owners $136,000 MCFADDEN SQUARE TOTALS: City $2,156,502 Property Owners $488,926 Discussion ensued, wherein staff was asked why the recommended cost of streetlights in Cannery Village is $2,500, and those in McFadden Square area is $4„000. Mr. Gustin stated that those streetlights in Cannery Village are based on a concrete post with a single ornamental globe, whereas those in McFadden Square are cast iron with two light fixtures on each post, and consistent with the streetlights of the Dorymen's Inn. Staff also added that during the petition stage, the residents can either accept, or reject the recommendations of staff, and can propose a different streetlight design, if they so choose. Don Webb, City Engineer, Public Works Department;, was introduced and asked to give a presentation on the recommendation for a restroom alternative. He stated that several months ago;, three alternatives to the Volume 41 - Page 402 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS ,1 A CITY OF NEWPORT BEACH October 26, 1987 MINUTES Volume: 41 - Page 403 Cannery Vlg/ McFdn Sq Asmt Dists Newport Pier restroom were proposed, and staff has come back with one additional alternative, which is a single restroom building with area of 1,700 - 2,000 sq. ft.; for a proposed cost of between $450,000 - $500,000; closer to the pier; • and is Alternative #4. Mr. Webb described the model, as well as several drawings in detail, (roof structure designed to blend with the Pavilion, and the style of the building is reminescent of the early 1900) advising that staff is recommending Alternative #4, as it meets the criteria directed by the City Council. He also added that if Council approves staff's recommendation, they would hope to start construction by September, 1988. Mayor Cox invited public testimony on the McFadden Square improvements. Karl Ackerman (no addressed given) addressed the Council, and stated that he was totally in support of how City staff has fine -tuned the project, and urged adoption of the recommendations, as set forth by staff. Bob Roubian, owner of the Crab Cooker, • addressed the Council, stating that he supports staff's recommendations of the restroom facility, and to his delight, no parking spaces are lost. William Blurock, representing South Coast Shipyard, addressed the Council, stating that he was pleased the project was moving ahead, and hoped that within the next 180 days more support is generated among the property owners for the proposed assessments. Sid Sofer, 900 Arbor Street, Costa Mesa, addressed the Council, stating that he is hopeful the local citizens can generate enough support in the petition process, and also give suggestions as to what else can be done to improve the McFadden Square area. John Helms„ 2524 Via La Selva Avenue, owner of boat yard at the corner lot of 26th Street, addressed the Council, stating that he was opposed to proposed Assessment District 87 -3, but feels that the present: recommendations for the McFadden Square improvements is a great plan. Volume: 41 - Page 403 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS • i on • x CITY OF NEWPORT BEACH MINUTES October 26, 1987 Jay Brewer, 10141 Pua Drive, Huntington Beach, addressed the Council, stating that he was from the Dory Fleet, and inquired as to what would be their responsibilities, and cost. City Engineer Don Webb, responded that the Dory Fleet, under Alternative A, would be moved approximately 25 feet to the west, and the City would relocate the pilings,. He added that the City would work with the Dory Fleet to move the structures, and Mr. Brewer was advised that he could attend the meeting scheduled by the Marine Director at 9:00 a.m., Tuesday, October 27, for updated information, if he so desired. 3. Discussion ensued with regard to the Proposed Project Priorities, and Chris Gustin reviewed priorities and costs information., (presented in the foregoing pages 397 thru 402 of the minutes) adding that staff has not suggested specfic time frames for the work to be done. Mayor Cox closed the public hearings. CANNERY VILLAGE IMPROVEMENTS Motion was made to direct staff to: Continue negotiations for the proposed parking facility in Cannery Village; Proceed with the final design and budgeting of the Villa Way improvements; Proceed with the City- funded repair work in Cannery Village; Commence Chapter 27 proceedings for the funding of initial installations of curbs, gutters, sidewalks, and alleys; Distribute petitions for the formation of a streetlight assessment district; and Adopt Resolution No. 87 -153 abandoning all proceedings pertaining to the formation of Assessment District No. 87 -1. Volume: 41 - Page 404 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS AG A! y n� cti\ All Ayes Motion All Ayes Motion All Ayes x x, CITY OF NEWPORT BEACH MINUTES October 26, 1987 Council Member Sansone asked the maker of the foregoing motion, to consent adding the following: "Direct staff to continue investigating finding contiguous land so that the parking structure may be enlarged to two or more decks," to which there was no objection. The motion was voted on and carried. MCFADDEN SQUARE IMPROVEMENTS Council Member Plummer made a straw -vote motion to approve selection of Restroom Alternative A, and direct staff to proceed with the preparation of plans for said selected alternative, which was approved by the entire City Council. Motion was made to: Approve the conceptual designs for the McFadden Square Plaza and indicate the City's willingness to fund fifty percent (not to exceed $350,000) of this improvement. Direct staff to distribute petitions to the McFadden Square property owners allowing 180 days for successful completion of the petition process to form a single purpose assessment district to fund fifty percent of this improvement; Direct: staff to commence Chapter 27 proceedings for the funding of the initial installations and repairs to nonstandard improvements; Direct: staff to proceed with the City - funded repair work; and Adopt Resolution No. 85 -154, abandoning all proceedings pertaining to the formation of Assessment District No. 87 -3. CANNERY VILLAGE AND MCFADDEN SQUARE both areas Motion was made to: Establish the priority system discussed in the staff report for City - funded improvements in Cannery Village and McFadden Square. Volume 41 - Page 405 Cannery Vlg/ McFdn Sq Asmt Dists COUNCIL MEMBERS • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 4. Mayor Cox opened the public hearing regarding 31ST STREET IMPROVEMENTS AND NEWPORT HEIGHTS ALLEY IMPROVEMENTS bounded by 15th Street, Westminster Avenue, Clay Street and Bolas Avenue (C- 2470), pursuant to Chapter 27 of the Improvement Act of 1911. Report from Public Works Department, was presented. The City Manager stated that both areas have well over 50% majority approval, and unless there is sufficient opposition tonight, staff is recommending proceeding with the proposed street /alley improvements. Ross McElfresh, 514 Bolas Avenue, addressed the Council, stating that when the proposal was first presented to the neighborhood the cost was approximately $2,000 and interest at 5% over a five year period; later it was proposed at a cost of under $2,000, at 5% for 10 years. He stated that they had hoped the cost would be approximately $2,000, not to exceed 9% per year, and the last information from the City's Public Works Department stated that the interest rate would be 12% with no year figure set by the City Council. Public Works Director Ben Nolan stated that the law allows a maximum interest rate of 12 %, and Council can direct staff that the interest rate be established at said rate, or at a lesser interest rate. He stated staff has indicated they recommend 8% per annum be charged, and that the assessment district have a pay back period of 10 years. He also added that the costs are based upon costs for work of a similar character, and the smaller lots are under $2,000; the larger lots are over $2,000. Discussion further ensued, wherein the Public Works Director stated that the alley improvements have been combined with the 31st Street improvements so that the City will receive a competitive price, and the actual cost to the property owners is small. Allen Schwalbe, owner of property #18, addressed the Council, stating that he is an absentee owner who voted for the improvements before the actual cost was known to him, and questioned how the costs are determined. Volume 41 - Page 406 Npt Hghts Alley Imprv/ 31st St Imprvm C -2470 (38) • Motion All Ayes x CITY OF NEWPORT BEACH MINUTES October 26, 1987 The Public Works Director stated that there are three possible ways in which an assessment of this type could be spread: 1) proportional to area; 2) frontage; 3) per each basis; and for each alternative, some property owners would be in favor of, or opposed to one or the other. He stated that the basic concept of an assessment district is that the cost be spread in proportion to the benefits received, and in reviewing the difficulties that are inherent in a project of this type, the different sizes, shapes and frontages of the properties, it was felt the proportion to the area was the most reasonable. Mr. Schwalbe also inquired as to whether he would be liable for increased property taxes, and would his property be reassessed by the County as a result of the improvements. He added that he was happy for the improvements, but that he wanted to know what additional costs he would be faced with. Discussion ensued, wherein it was stated that the alley did not belong to the property owner, but to the City, and that the property owner would not be further assessed with County taxes. Mayor Cox declared the public hearing closed. Motion was made to direct staff to continue the procedure to improve the alleys located in Block 2, Tract No. 27 of Newport 'Heights, and for 31st Street in Cannery 'Village per the plans; approve the plans and specifications, and authorize the City Clerk to advertise for bids to be opened at 11:00 a.m. on November 17, 1987; and affirm the Negative Declarations of Environmental Impact for the project. 5. Mayor Cox opened the public hearing regarding request for Certificate of Public Convenience and Necessity for DIAMOND CAB COMPANY, 17300 Mt. Herrmann Street, Fountain Valley, to operate a public transportation service, pursuant to the Newport Beach Municipal Code Section 5.12.020 and 5.12.040. Report from the Business License Supervisor, was presented. Volume 41 - Page 407 pt Hghts lley Imprv/ 1st St Imp Cab (86) COUNCIL MEMBERS S eni � nu , � y Motion I x • Ayes x Abstain Motion All Ayes CITY OF NEWPORT BEACH I xi x I x I x I x x MINUTES October 26, 1987 The City Manager advised the Council that the applicant is Coast Yellow Cab Co -op, Inc., has operated 12 taxicabs in the City since 1959 under the name of Yellow Cab of Newport Beach, and are now making application to operate five additional taxicabs in the City under the business name of Diamond Cab. Mayor Cox declared the public hearing closed, after it was determined that no one wished to speak on this item. Council Member Turner made a motion to concur in staff's recommendation and grant Certificate of Public Convenience and Necessity to Diamond Cab Company. Council Member Sansone stated that he felt the service from Yellow Cab of Newport Beach left a lot to be desired. He cited an incident, wherein it took more than one call to Yellow Cab, and 1 - 11g hours for service; and two separate times when he called for transportation to the airport, and the driver never did show. Mayor Pro Tem Hart stated that she would be abstaining for the reason that the applicant, or a representative was not here to answer questions. The motion was voted on and carried. E. PUBLIC COMMENTS: Sid Sofer, 900 Arbor, Costa Mesa, addressed the Council concerning the alley in front of his property on Old Newport Road, stating that the area has been declared by the City as unsafe. He feels that under the circumstances, the City should be responsible for the repair. F. CONSENT CALENDAR: The following actions were taken as indicated, except for those items removed. 1. ORDINANCES FOR INTRODUCTION: Pass to second reading and schedule for public hearing on November 9, 1987 - (a) Proposed ORDINANCE NO. 87 -45, being, AN ORDINANCE OF THE CITY OF NEWPORT BEACH ADOPTING PLANNED Volume 41 - Page 408 Diamond Cab Old Npt Rd Ord 87 -45 (94) COUNCIL MEME • • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 COMMUNITY DISTRICT REGULATIONS AND A DEVELOPMENT PLAN FOR FASHION ISLAND IN NEWPORT CENTER, LOCATED WITHIN THE RING DEFINED BY NEWPORT CENTER DRIVE, AND AMENDING PORTIONS OF DISTRICTING MAPS NO. 48 AND 49 SO AS TO RECLASSIFY SAID PROPERTY FROM THE C -O -H DISTRICT TO THE PLANNED COMMUNITY (P -C) DISTRICT [Planning Commission Amendment No. 632] (Report from the Planning Department) Pass to second reading on November 9, 1987 - (b) Proposed ORDINANCE NO. 87 -46, being„ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 5.49.070 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO FALSE ALARM PENALTY. (Report from the Assistant City Attorney) 2. RESOLUTIONS FOR ADOPTION: (a) Resolution No. 87 -155 supporting the recommendations of the September 1987 "Super" Committee Report: by Orange County Division, League: of California Cities. (Report from Public Works Department) 3. CONTRACTS /AGREEMENTS: (a) Removed from the Consent Calendar. (b) Waive irregularities in the bid documents of Gateway Landscape Construction, Inc.; award Contract No. 2.525 to Gateway Landscape, Inc., for Balboa Island Bulkhead Repair Near Waters Way; and authorize the Mayor and City Clerk to execute subject contract. (Report from Public.Works Department) (c) Authorize the Mayor and City Clerk to execute a Modification to the Lease (Contract No. 2669) with Hewlett- Packard Company regarding Geobase Hardware System. (Report from Assistant City Attorney) Volume 41 - Page 409 PCA 632 Ord 87 -46 Bus Lic/ False Alrm (27) 0/C League Cities /Supr Cmte Res 87 -155 (61) Balboa Is Blkhd Rpr/ Waters Wy C -2525 (38) Geobase Hrd- ware/Hewlt Pckd C -2669 (38) COUNCIL MEMBERS u • CITY OF NEWPORT BEACH October 26, 1987 4. 5. COMMUNICATIONS - For referral as indicated: (a) To Public Works Department for reply„ letter from Mrs. Margaret Daly requesting status report of proposed road in the vicinity of Newport Center Drive, Avocado and Acacia. (b) To Pending Legislation and Procedural Ethics Committee, suggestion from Jennifer Irani to limit the production of chlorofluorocarbons in Newport Beach. MINUTES PW (74) Legislation (48) (c) To Traffic Engineer for reply, Trfc Engr complaint from Harry Klemm, (63) regarding inconvenience of correct change: to accommodate the parking meters while shopping in Newport Beach. (d) To Fire Department for inclusion in Fire Dpt the records, letter of appreciation (41) to Chief Reed regarding approval of amendments to the City's ambulance regulations from Schaefer Ambulance Service. COMMUNICATIONS - For referral to the City Clerk for inclusion in the records: (a) Copy of letters from West Newport Beach Association to Public Works Department regarding request for bike trail sign at Seashore Drive and Orange; expressing appreciation for excellent job at 38th Street and Balboa. Boulevard park; and request for new sign indicating a "4 -way stop" at 38th and Balboa Boulevard. (b) Copy of letter to Editor of the Ensign from Peggy and Earl Timmons, applauding Jim Felton and the Ensign for reporting the facts on October 1, about the Newport Beach Public: Library. (c) Application A87 -08 -041 of Riad 0. Dandan, dba Olympic Limo Van Service before California Public Utilities Commission for certificate of public convenience and necessity. Volume 41 - Page 410 OUNCIL MEMBERS S � • • • CITY OF NEWPORT BEACH October 26, 1987 6. CLAIMS FOR DAMAGES - For denial and confirmation of the City Clerk's referral to the claims adjuster: MINUTES (36) (a) Lisa Lynn Abaramoska for personal Abaramoska injuries, alleging she was arrested in error and alleging unethical handling of situation by Police Officers at Ocean and "G "Streets on July 5, 1987. (b) Auto Club of Southern California JAuto Clb for Kathi Shannon for damages, So CA/ alleging her vehicle was hit by Shannon City Fire truck while parked on Marine: Avenue, Balboa Island on May 26, 1987. (c) Nancy DeJovin alleging damages as a DeJovin result: of Police Officer entering her home at 123 38th Street on September 4, 1987, while she was asleep and mistaking her for someone else. (d) Removed from the Consent Calendar. (e) Richard D. Kiner alleging his Kiner vehicle was struck by Newport Beach Police: paddy wagon while parked at 111 "C" Street on September 25, 1987. (f) Removed from the Consent Calendar. (g) Renee Garneau Sabol alleging Sabol personal injuries and emotional distress as a result of accident at Pacific Coast Highway and Newport Boulevard on July 11, 1987. (h) Hollis Dennis Snell alleging Snell damages as a result of being physically abused by Police Department at 1938 Port Cardiff on September 18, 1987. (i) Cho Jean Yu of 1815 Newport Hills Yu Drive East alleging damages and protective relief as a result of arrest: by Police Department on July 17, 1987. 7. SUMMONS AND COMPLAINTS - For denial and �(36) confirmation of the City Clerk's referral to the claims adjuster: (a) Norman Castles for damages, Orange (Castles County Municipal Court, Case No. 87549. Claim was denied by City Council on May 11, 1987. Volume 41 - Page 411 COUNCIL MEMBERS -A 1\1 \;\ • CITY OF NEWPORT BEACH MINUTES October 26, 1987 (b) William J. Verdult, Orange County Superior Court, Case No. 534150. Claim was denied by City Council on March 9, 1987. 8. REQUEST TO APPROVE /FILL PERSONNEL VACANCIES: (Report from the City Manager) (a) One Electrician II, Utilities Department. (b) One Maintenance Worker I (Asphalt Crew)„ General Services Department. 9. STAFF AND COMMISSION REPORTS - For Council information and approval: (a) Memorandum from Fire Chief Reed recommending DONATION OF UNSERVICEABLE EQUIPMENT TO RANCHO SANTIAGO COLLEGE for use in hazardous materials training. (b) Correspondence from Bicycle Trails Citizens Advisory Committee regarding recent REQUESTS OF WEST NEWPORT BEACH ASSOCIATION CONCERNING CLOSURE OF EXISTING BICYCLE ACCESS AT THE WESTERLY END OF SEASHORE DRIVE. (c) Removed from the Consent Calendar. (d) Removed from the Consent Callendar. Verdult (66) Fire Dpt (41) BT /CAC (24) (e) Progress /Status Report from EQA /CAC Environmental Quality Affairs, (24) Citizens Advisory Committee concerning the following: Workshop Program, City Sign Program, Toxic Waste, etc. For Council. information and filing: (f) Report: to City Manager regarding ACTIONS TAKEN BY THE PLANNING COMMISSION ON OCTOBER 8, 1987. 10. PUBLIC HEARING SCHEDULING - November 9, 1987: (a) GENERAL PLAN AMENDMENT 87 -1(C) - A request initiated by the City of Newport Beach to amend the LAND USE ELEMENT of the Newport Beach General Plan so as to allow an additional 69,500 sq. ft. of commercial development in FASHION ISLAND, and the acceptance of an Environmental Document; and Volume 41 - Page 412 Ping Cmsn (68) GPA 87 -1(C) (45) OUNCIL MEMBERS �G � \0�-% � G \00 G9 • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 GENERAL PLAN CONSISTENCY DETERMINATION - Determination of Consistency with the provisions of the General Plan so as to allow the transfer of 1350 committed theater seats from Civic Plaza and 350 committed theater seats from Block 300 to Fashion Island; and AMENDMENT NO. 653 - Request to amend the Planned Community Development Standards of the CIVIC PLAZA PLANNED COMMUNITY so as to delete the 20,000 sq. ft. of existing allowable theater development; and GP Cnstncy Dtrmntn PCA 653 (94) TRAFFIC STUDY - Request to approve Trfc Stdy a traffic study so as to allow construction of 69,500 sq. ft. of commercial development in FASHION ISLAND. (Report from the Planning Department) (b) CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY FOR: (Memorandum from Business License Supervisor) Jim's Towing 935 West 18th Street Costa Mesa, CA 92627 (c) CONSTRUCTION OF CURBS, GUTTERS AND SIDEWALKS AT 205 AND 206 ORANGE STREET (Report from Public Works Department) (d) CONSTRUCTION OF ALLEY AND ALLEY APPROACH, NEWPORT BOULEVARD, 29TH STREET, VILLA WAY AND 28th STREET. (Report from Public Works Department) 11. PROPOSED GENERAL PLAN AMENDMENT N0. 87 -3 - Sustain the recommendation of the Planning Commission and initiate a General Plan Amendment for the following: 1) PACIFIC TELEPHONE SITE (NORTH FORD) - A request of SDC Development to change the land use designation from "Institutional" to "Retail and Service Commercial," and increase the allowable development so as to construct a 33,500 sq. ft. retail center; and 2) FIRST AMERICAN TRUST BUILDING (BLOCK 500, NEWPORT CENTER) - A request of First American Trust Company to expand an existing office building in NEWPORT CENTER by 560 sq. ft. (Report from the Planning Department) Volume 41 — Page 413 Jim's Towg (70) 205/206 Org Crbs /Gtrs Sdwlks (74) Npt B1 /Vla Wy /28th St (74) GPA 87 -3 (45) COUNCIL MEMI s. n �P is • CITY OF NEWPORT BEACH MINUTES October 26, 1987 12. ENCROACHMENT PERMIT - Uphold staff's recommendation to approve execution of an Agreement for nonstandard improvements; and encroachment permit from the Public Works Department for application of Brion Jeannette to construct a 3- feet -high masonry wall encroaching four feet into public right -of -way of Beacon Street, adjacent to 400 Santa Ana Avenue. (Report from Public Works Department) 13. Removed from the Consent Calendar. 14. REMODEL 15TH STREET RESTROOM (CONTRACT 2667) - Approve the plans and specifications; and authorize the City Clerk to advertise for bids to be opened at 11:00 a.m. on December 1, 1987. (Report from Public Works Department) 15. HARBOR PERI4IT APPLICATION #11 -100 - Uphold staff's recommendation to approve request of DeAnza Bayside Village to revise a commercial dock bayward of 300 East Coast Highway, subject to conditions of approval. (Report from Marine Department) 16. HARBOR PERMIT APPLICATION #259 -120 - Uphold staff's recommendation to approve request of Merlin J. Norton to revise a residential dock bayward of 120 South Bay Front, subject to conditions of approval. (Report from Marine Department) 17. HARBOR PERMIT APPLICATION #259 -144 - Uphold staff's recommendation to approve request of Terry Loebel to revise a residential pier and float bayward of 144 South Bay Front, subject to conditions of approval. (Report from Marine Department) 18. COUNCIL TRAVEL AUTHORIZATION AND EXPENSE RECORDS - Approve expense records for the following to attend the League of California Cities 1987 Annual Conference to San Francisco: Evelyn Hart (Oct. 3 - 7) $1,091.51; Philip Maurer (Oct. 4 - 7) $765.31; Ruthelyn Plummer (Oct. 3 - 7) $855.20; and Phil Sansone (Oct 3 - 7) $1128.20. Volume 41 - Page 414. Beacon St/ SAna Ave Encrchm Permit (65) 15th St Restrm Rmdl C- 2667'' (38) Harbor Perm Apli #11 -100 (51) Harbor Perm Apli #259 - 120 (51) Harbor Perm Apli #259 - 144 (51) Council Expense (33) COUNCIL MEMBERS \0A ��G�J, CITY OF NEWPORT BEACH MINUTES October 26, 1987 19. BUDGET AMENDMENTS - For approval: BA -036, $22,101.91 - Increase in Budget Appropriations and Revenue Estimates for construction of sanitary sewer improvements under Contract No. 2586, in accordance with January, 1986 agreement between Tic:or Title Company, Donald K. and Barbara G. Ward, and the City of Newport Beach [said agreement provides that the Ward's are to bear this portion of the project costs]; General Fund. (Refer to Public Works Department Report w /agenda item F -3(a)) G. ITEMS REMOVED FROM THE CONSENT CALENDAR: 1. Report from Public Works Department recommending approval of ENCROACHMENT PERMIT application of Raymond Vincenti of 119 Via Lido Soud, subject to an Agreement for nonstandard improvements and an encroachment permit from the Public Works Department, to construct two 3-foot-wide walkways, two gates in fence, water line, and an electric line on public property to service his pier located near the northeasterly approach to the Lido Isle Bridge, was presented. The Public Works Director advised the Council that the application for the subject encroachment permit is to allow Mr. Vincent:i access to a jointly owned pier with Mrs. Eva Acosta located near the Lido Isle Bridge. He stated that the owners formerly took access from a sidewalk behind the fence at the base of the slips along Via Lido, that has since been removed, and replaced with a new fence by the Lido Isle Community Association, and is located closer to the bulkhead than the previous fence. He added that prior to the construction of the new fence the applicant could reach his pier without walking immediately in front of his neighbor's picture window. He added that in an effort to eliminate a source of irritation to his neighbor, the applicant has applied for said permit, but the Lido Isle Community Association strongly opposes the application. Carolyn Hansen, 117 Via Lido Soud, addressed the Council, stating that she is a tenant of Mrs. Acosta, and her privacy is the most affected by Mr. Vincenti's using the walkway in front of her window. She stated that the Lido Isle Community Association never asked her opinion regarding the construction Volume 41 - Page 415 (25) COUNCIL MEMBERS • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 of the new fence, and furthermore, she and the other neighbors most affected, support Mr,. Vincenti's application. Randolph Kroenert, 119 Via Zurich, and President of the Lido Isle Community Association (LICA), addressed the Council stating that they oppose the subject application because, apparently, Mrs. Acosta, without obtaining City approval or LICA Architectual approval, changed the! slope of the hill, removed part of the! retaining wall, thereby making it impossible for the prior agreed upon walkway with Mr. Vincenti. He stated that he can only conjecture as to her motive, haste, and virtual secrecy in doing this, and that having an outside gate increases the chance of people climbing over the fence, providing a public access, and further increases the City's exposure to liability. Also, he stated that the City became: aware there were exposed electrical and water utility pipes and wires running from Mr. Vincenti's property to these piers, both which were not identified in any permits in the City, nor were they standard and Mr. Vincenti was ordered to remove them; and subsequently, Mr. Vincenti, in a letter to LICA, stated that he felt it was their responsibility to remove them. Mr. Kroenert stated that LICA would ask that the Council consider their recommendations as follows; 1) Give Mr. Vincenti permission to have an inside walkway to his piers, which also provides Mrs. Acosta the same rights; 2) Give permission to lay the electrical water lines consistent with City specifications and permits; 3) Mrs. Acosta be required to either replace the original retaining wall and topography on the City property to its original condition, whereby the walkway can be put in, or to share in the cost with Mr. Vincenti to build a walkway providing an alternative: to the retaining wall. Claude Whitney, 119 Via Lido, Attorney representing Mr. Vincenti, addressed the Council, stating that his client is only asking that he have access to his piers, and he was told by the City staff that they could only approve the double walkway, which is the plan submitted in the permit application. Volume: 41 - Page 416 Encrchm Permit/ Vincenti COUNCIL MEMBERS • • u CITY OF NEWPORT BEACH MINUTES October 26, 1987 The Public Works Director stated there are many alternatives that would be acceptable to the City, even the one similar to the access that was originally on City property. Raymond Vincenti, owner of 119 Via Lido Soud, addressed the Council, stating that he has been denied access to his piers since January of this year. He felt that lie should be given temporary, or permanent access in the interim of finding a mutually satisfactory solution. Charlene Ross, 208 Via Cordova, addressed the Council stating that she has lived on Lido Isle for 26 years, and that it is unfair for anyone to want a private walkway at the expense of the other tenants and owners, and that there are many more people who are affected. She stated that she has looked at the area in concern, and feels Mr. Vincenti's permit application is defective. The Public Works Director stated that the permit„ if granted to Mr. Vincenti, would be to install improvements within City property. Pat Hollander, Secretary of the Lido Isle Community Association, addressed the Council and stated that if the fence, gate, and sidewalks are put in as Mr. Vincenti proposes, LICA believes this would invite curiosity seekers and it would be an attractive nuisance. She further stated that if the piers are being used by more than one person, a club perhaps, then will the City want to take on the liability of keys for the gate being passed around, as LICA cannot afford the liability. Joyce Luithle, 108 Via Cordova, addressed the Council stating that she concurs in the remarks of Mr. Kroenert, and Ms. Hollander. She also stated that Mrs. Acosta purchased the property knowing that the walkway was to be used by others. Volume 41 - Page 417 Encrchm Permit/ Vincenti COUNCIL MEMBERS I\s `o • • Motion All Ayes Motion All Ayes i ion Ayes x x x CITY OF NEWPORT BEACH MINUTES October 26, 1987 INDEX Judith Longyear, 215 Via San Remo, Encroachm addressed the Council stating that she Permit was on the LICA Board of Directors for Vincenti Landscaping last year, and at that time the plan was to move the fence down to the north side of the bridge. She also stated that she spent many long hours with Mr. Vincenti and Mrs. Acosta regarding his walkway, which all agreed that it was designed to be inside of the fence, and she is at a loss as to why Mrs. Acosta had changed the agreed -upon plan. Carolyn Hanson, addressed the Council again, stating that as she is home most of the time, she has not seen much usage of the walkway by others, as the boats down at the dock used by the Lido Sailing Club come across the water to the pier. Discussion ensued, wherein question was raised as to are Mr. Vincenti's slips being used for private or commercial purposes. Mr. Vincenti addressed the Council again, and was asked if any of the boats docked at his slips were registered in his name, to which he replied, they were not, and that they were the property of the Lido Sailing Club, which is a private club, of which he is a charter member. After further discussion, motion was made to defer action until November 9, 1987, in order to give more time for input by staff, and an agreement mutually satisfactory to the Lido Isle Community Association, Mr. Vincenti and Mrs. Acosta.. 2. Memorandum from City Manager concerning ANNUAL REVIEW OF COUNCIL POLICY MANUAL /MODI:FICATIONS, was presented. Motion was made to defer action on Council Policy N -4 Parking Permit Use in Parking Met:er Zones, to November 23, 1987, with a report from the Off- Street Parking Committee regarding the blue poles. Dave Dmohowski, representing The Irvine Company, addressed the Council, and requested that Council Policy S -1 be reconsidered at this time, therefore, motion was made for that purpose. Volume 41 - Page 418 (69) COUNCIL MEMBERS I\X Motion All Ayes • . v Motion All Ayes Motion Ayes • x x CITY OF NEWPORT BEACH MINUTES October 26, 1987 Motion was made to modify Council Policy S -1 Administrative Procedures for Implementing the Traffic Phasing Ordinance, to the effect that "Credit shall be given for existing uses on the project site except that no credit shall be given for any use that has been terminated for more than one year prior to the filing of an application for new development on the property." 3. Letter to Orange County Board of Supervisors signed by the Mayor regarding AIR SAFETY, was presented. Discussion ensued, wherein motion was made to direct a strong letter to H. C. McClure, Director of the Federal Aviation Administration, (with a copy to the Board of Supervisors) to take action to prevent a reoccurrence concerning a near collision of an airliner and a small aircraft over Newport Beach. George Frost Company claim seeking indemnity from claim filed by Brian Warfe; and Cladio M. Lopez claim for personal injury, were presented. Motion was made to concur in action taken by the City Attorney for a Notice of Insufficiency regarding claim filed by George Frost Company; and claim regarding Cladio M. Lopez be referred to staff for further review. 5. Report from the Public Works Department recommending the following was presented: Find that the apparent low bidder, P & J Utility, is not "the lowest responsible bidder;" reject the bid of P & J Utility; approve Budget Amendment appropriating $22,101.91 from the General Fund; and award Contract No. 2586 to George Dakovich & Son, for the total price: of $616,715 for Sewer Main and Alley Replacement Program; and authorize the Mayor and City Clerk to execute subject contract. Paul Miller, President of P & J Utility and property owner and resident of Newport Beach, addressed the Council and stated that he wanted to explain why his company should be awarded the contract, thereby saving the City $10,000, which is the difference between his bid and the bid awarded to Geoge Dakovich & Son. Volume 41 - Page 419 O/C Arprt/ Air Safety (54) George Frost Co/ Lopez (36) Swr Mn Aly Rplcm Prg/ P & J Utlty Geo Dakovich C -2586 (38) COUNCIL MEMBERS 'A • • • CITY OF NEWPORT BEACH MINUTES October 26, 1987 Mr. Miller stated that at the time of the bid opening on October 15, he was confident that he could perform the work under his :license classification, as he had been in business for 12 years, and the work to be bid on was similar to work that lie has been doing for that time. He stated the following day he was informed by the City Attorney that they were contemplating rejecting the bid due to the fact that he did not have a Class A license. He asked the City Attorney why this requirement was not printed in the bid documents, so that prospective bidders would know how they were to bid, and was told by the City Attorney that it should have been posted, but that he would check with the Public Works Department and get back to him. Mr. Miller stated that the following Monday, he talked to the City attorney, and was informed that the Class A license was not the issue now, but was he qualified to do the work. He stated that after checking with the State Contractor's License Board he was informed by the City Attorney that he was not licensed to do the concrete work. Mr. Miller stated he was not here to argue the Class A license, but the fact that lie was bidding on sewer replacement: work, and the concrete work is incidental. He also stated that when checking with the State Contractor's License Board, he would not be in violation if he were to do the project, based on the percentage of concrete work that the project requires. The Public Works Director stated that the project: is a $600,000 contract; half of the work consists of alley paving and half underground work. He stated that Mr. Miller is properly licensed for underground work, but the project includes a substantial amount of alley paving. He further stated that the City's interpretation was explained to the State Contractor's License Board, and they concurred that P & J was not properly licensed to do the contract. Volume 41 - Page 420 P &.J Utlty COUNCIL MEMBERS �G� gG _A not G 0 Motion Ayes �s Motion All Ayes • CITY OF NEWPORT BEACH xlx I x I x I x I x I x x MINUTES October 26, 1987 Discussion ensued, wherein the City Attorney stated that there is a provision under the Public Works Contract's Code for substituting one contractor for another subcontractor, which would require the bidder to ask for permission in a public hearing for the City to consider substitutions. He further stated that there is no provision to allow a licencesee to submit another firm, even under a joint venture, and that the contractor warrants he is able to perform the work using his own forces. Martin A. Kordick, 324 Otero, addressed the Council stating that he is the other half of the joint venture, and that they had bid some work recently in northern California, where it was typical C42 work, which is water main, sewers and storm drain, Class A license work, but this was spelled out in the bid specifications and totally understood. He felt that the City should reconsider their decision, and award the bid to P & J Utility. Motion was made, under the circumstances, to uphold staff's recommendations, as set forth in the staff report, and award C -2586 (Sewer Main and Alley Replacement Program) to George Dakovich and Son. H. ORDINANCES FOR ADOPTION: None. I. CONTINUED BUSINESS: 1. BICYCLE TRAILS CITIZENS ADVISORY COMMITTEE VACANCIES: Motion was made to have the following positions (terms ending December 31, 1987) remain vacant until the January 1, 1988 appointment process: (District 1) Council Member Strauss' appointment to fill the unexpired term of Marilyn, Hendrickson; and (District 6) Council Member Sansone's appointment to fill the unexpired term of Sydney Balalis. Volume 41 - Page 421 P & J Utility BT /CAC COUNCIL MEMBERS low CITY OF NEWPORT BEACH MINUTES October 26, 1987 J. CURRENT BUSINESS: None. Meeting adjourned at 10:18 p.m. k * * * * * * * * * * * The agenda for this meeting was posted on October 22, 1987, at 8:30 a.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Volume: 41 - Page 422