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HomeMy WebLinkAbout10/11/1993 - Regular MeetingCITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES REGULAR COUNCIL MEETING PLACE: Council Chambers TIME: 7:00 P.M. S' DATE: October 11, 1993 ROLL CRLL Present Motion Ayes .Abstained Mo Ales Motion All Ayes • • INDEX X X X X X X X ROLL CALL X Reading of Minutes of Meeting of September 27, X X X X X X 1993, was waived, approved as written, and X ordered filed. X Reading in full of all ordinances and resolutions under consideration was waived, and City Clerk was directed to read by titles only. CONSENT CALENDAR X The following items were approved, except for those items removed: CONTRACTS AND AGREEMENTS 1. Removed from the Consent Calendar. 2. Award Via Marina, Newport Hills Drive De Sc West, Kings Road, Harbor Island Drive, Terra Harbor Island Road, and De Sola Terrace Strm STORM DRAINS (CONTRACT NO. 2914) to Gillespie Construction, Inc., for total C -291 bid price of $382,319. [Report from (38) Public Works Department] 3. Award NEWPORT CENTRAL LIBRARY FURNITURE Npt C BIDS (CONTRACT NOS. 2778(A -C 6 E -G) to Libra various companies for total price of Furni contracts - $395,317.41. [Report from Public Works Department] (38) (38) 4. PERSONNEL VACANCIES - Reports from Personnel and General Services (66) Departments. 5. CLLR - For denial by the City Manager: (36) Stephan Galas alleging City was negligent in maintaining roadway, thereby causing personal injuries from falling off bicycle due to pothole on Pacific Coast Highway, south of Tustin Avenue on September 3, 1993. Southern California Edison Company alleging Valley Crest Landscape (under contract by the City) damaged underground structure while planting trees 1501 east of Nightshore (Vista Ridge) on August 23, 1993. Rosalind C. Wells alleging rock hit windshield on September 3, 1993 while driving on Morning Canyon Road toward Newport Coast Drive on September 3, 1993; seeking reimbursement of $100 for repair to vehicle. PUBLIC HEARING SCHEDULING: October 25. 1993 - 6. VARIANCE NO. 1194 - Appeal application Variai of Thomas E. Steinfeld for Planning 1194 Commission to review alternate design (91) proposal on property located at 326 Buena Vista Boulevard. Volume 47 - Page 260 la ce Dr 4 ctrl Cy/ ture 3 ice [K:l" is • CITY OF NEWPORT BEACH COUNCIL MEMBERS MIMIHof \\ October 11, 1993 GENERAL PLAN AMENDMENT NO. 93 -2(D) - Request to amend the Land Use Element of the General Plan to allow an additional 3,805 sq. ft. of development to property located In Block 600 Newport Center. The proposal also includes the acceptance of an Environmental Document; TRAFFIC STUDY NO. 87 - Request to approve a traffic study so as to allow the conversion of approximately 14, 445 sq. ft. of existing general office space and restaurant space to athletic club purposes; AND USE PERMIT NO. 3509 - Request to permit the establishment of an 18,250 square foot athletic club on property located in the APF -H District. The proposal also includes a request to establish the parking requirement for the athletic club based on a demonstrated formula. [Report from Planning Department] November S. 1993 8. PROPOSED UNDERGROUND UTILITIES DISTRICT NO. 13 (on West Coast Highway from Dover Drive Westerly to Marino Drive, and on MacArthur Boulevard from East Coast Highway northerly to Crown Drive). [Report from Public Works Department] 9. EMERGENCY AMBULANCE TRANSPORTATION SERVICES R.F.P. - Authorize City Clerk to advertise for bids to contract for emergency transportation services to be opened on November 17, 1993 at 10:00 a.m. [Memorandum from Fire Chief] 10. PLANNING COMMISSION ACTIONS OF SEPTEMBER 23. 1993. [Report from Planning Department] 11. REORGANIZATION OF FIRE PREVENTION DIVISION - Amend the FY 93/94 Budget to reflect the proposed changes to the Fire Department organization, and authorize the City Manager to open recruitment for the position of Fire Marshall to be filled by January 1, 1994. [Report from Fire Chief] PUBLIC HEARINGS 12. Mayor Turner opened the public hearing to consider adoption - -. of proposed resolution establishing the maximum base, mileage, and standby rates for AMBULANCE TRANSPORTATION SERVICE WITHIN THE CITY, ESTABLISHING THE FIRED FRANCHISE FEE FOR EMERGENCY AMBULANCE TRANSPORTATION SERVICES, AND RESCINDING RESOLUTION NO. 85 -81. Report from the Fire Chief. Fire Chief Tim Riley summarized his report and noted that pursuant to the Municipal Code, the City Council is required to hold a public hearing to determine whether previous ambulance rates should be changed; a new rate schedule has not occurred since October 1985, and since that time, the rates Volume 47 - Page 261 MINUTES GPA 93 -2(D; (45) Trfc Stdy 87 U/P 3509 Undrgr Ut/ Dist 13 (89) Ambulance Srvs Bids (27) Planning (68) Fire Dpt. (41) Ambulance Trnsp Srvs (27) COUNCIL MEMBERS ROLL CRLL S M90 Ayes 40 CITY OF NEWPORT BEACH n\ \\ October 11, 1993 X XI XI XI XI XI XI X were amended in the most recent contract for emergency ambulance transportation services between the City and Seals Ambulance Services on May 20, 1991. This contract has since expired, but Seals Ambulance Services has continued to provide emergency ambulance transportation services using the framework of the contract. He pointed out that the proposed resolution establishes the maximum rates that may be charged. The actual rates charged would be established through the competitive request for bid proposals process. The Municipal Code also requires that the City Council set a franchise fee that emergency ambulance transportation service providers must pay the City to operate in Newport Beach. It is recommended the franchise fee be at least ten percent. Following this public hearing, the staff will prepare requests for proposals for ambulance service within the City. It is estimated that notice inviting bids will be mailed to twelve local ambulance companies. Delores Otting, 17 Hillsborough, addressed the Council and stated there is a distinct difference between a "bid" and a "proposal," and in her opinion, the two words should not be interchanged. Hearing no others wishing to address the Council, the public hearing was closed. Motion was made to adopt Resolution No. 93 -70. Council Member Sansone stated that he will not be supporting the motion, not only because the City is continually raising fees, but he felt it would be an "imposition on the residents to raise a fee for a private concern to operate within the City." In response to question raised by Council Member Hedges regarding the rationale for imposing a franchise fee, the City Manager responded that this is the first time the City has enacted a franchise fee for ambulance services. Other franchise fees include Southern California Edison Company, Southern California Gas Company, cable television, and towing services. By allowing one entity to have the exclusive right to provide emergency ambulance service, it was felt the City should receive a fee. The motion was voted on and carried. 13. Mayor Turner opened the public hearing regarding APPEAL OF TERRY PESTS ON VARIANCE NO. 1192 - Request to permit an as -built alteration to an existing single family dwelling which has Volume 47 - Page 262 MINUTES Ambulance Trnsp Srvs Res 93 -70 Variance' 1192 /Appl (91) COUNCIL MEMBERS fig, ROLL CRLL s • • C J CITY OF NEWPORT BEACH October 11, 1993 resulted in the structure exceeding the allowable gross floor area of 1.5 times the buildable area of the site, on property located in the R -1.5 District at 327 Coral Avenue on Balboa Island. Report from Planning Department. Applicants appeal application with attachments. The City Clerk advised that after the agenda was printed, a letter was received from Ted Cooper, 322 Sapphire Avenue, urging denial of the subject request. The Planning Director summarized his report and noted that this is a request to retain an as -built alteration to an existing single - family dwelling, specifically a bedroom and closet area which was added to a clerestory space above a garage. This particular addition was made without building permits and after the original building was constructed in 1988. The R -1.5 zoning on this lot would allow a structure of 2,520 sq. ft. at a building to land ratio of 1.5 x the buildable area of the lot. As the structure stands today, the dwelling contains an area of 2,706 sq. feet., and therefore, exceeds the zoning standards by 186 sq. ft. This was brought to the attention of the Planning Department: in the form of a complaint which was registered last May. A similar violation was also found at 221 Ruby Avenue. In order to grant a variance, the Planning Commission or City Council on appeal must make three findings: 1) that there are exceptional or extraordinary circumstances applying to the land, the building or the use referred to in the application which circumstances or conditions do not apply generally to land, buildings and /or uses in the same district; 2) the granting of the application is necessary for the preservation and enjoyment of substantial property rights of the applicant; and 3) that the granting of the application will not, under the circumstances of the particular case, be materially detrimental to the health, safety and general welfare of persons living or residing in the immediate area. The Planning Commission held a public hearing on this request on September 9, 1993 and the request was not approved by a vote of 3 ayes, 3 noes, and 1 absent. He further noted that on September 27, 1993, the Planning Commission was given direction by the City Council to initiate an amendment to the Municipal Code which will hopefully eliminate the problem of clerestory space being built above garages throughout the City. Volume 47 - Page 263 MINUTES Variance 1192 /Appl COUNCIL MEMBERS ROLL CRL�L� \���� \\ • 0 CITY OF NEWPORT BEACH October 11, 1993 With regard to the variance at 221 Ruby Avenue, the Planning Department stated this was a similar situation in that a bedroom and closet addition had also been made in a clerestory area above the garage. However, the circumstances surrounding that issue was that the applicant had purchased the property from the bank who had taken the property back from the original owner, and in transferring the title to the new owner, the new owner was not made aware of the fact that an illegal construction had occurred. Therefore, in that particular case, the Planning Commission approved that variance. Mrs. Diane Peets, 327 Coral Avenue, Appellant, addressed the Council and submitted a prepared statement in support of the appeal, together with a petition signed.by neighbors in her area urging approval of the variance. She noted that the house at 221 Ruby Avenue was built by the original owner with the plans from their house which were stolen by that owner and submitted to the City with their name "whited out" and his own name written in as the owner of the plans. This was acknowledged by the Planning Department who also determined that the plans for their home, including microfilm, were missing from the Building Department. She requested that they be given the same rights as the owners of 221 Ruby Avenue and granted their variance request, inasmuch as they have an almost identical set of circumstances. Hearing no one else wishing to address the Council, the public hearing was closed. Discussion ensued with regard to the so- called "lost plans," wherein Mrs. Peets stated that it is her understanding that the microfilm maintained by the Building Department for 327 Coral is missing at this time. Council Member Watt indicated she was initially prepared to make a motion to deny this variance; however, due to the "lost plans," etc., and the Planning Commission being requested to study the issue of clerestory areas above garages, she felt it might be well to consider continuing this item. The Planning Director stated he would estimate it will take approximately 4 to 5 months before the matter of clerestory areas above garages will be back to the City Council for consideration due to public notification, public hearing, and introduction and adoption of an ordinance. The City Attorney commented that his office advised the Planning Commission on this variance, as well as the variance at 221 Ruby Avenue, that there Volume 47 - Page 264 MINUTES INDEX Variance 1192 /Appl CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES %P \%\4 October 11, 1993 ROLL CALL rkmrV u win were not any facts contained in the Variance applications that would justify the 1192 /Appl granting of either variance, inasmuch as there has to be unusual circumstances pertaining to either the property or structure such as grade, configuration, size of the parcel, etc. It was felt there is nothing about the particular lot or structure in question that distinguishes it from other properties in the area, other than it is over -built under the floor area ratio ordinance. Variances should be granted only in limited circumstances when failure to grant the variance really results in a hardship, and is almost a taking of property of the individual involved. Motion x In view of the foregoing comments, motion was made by Council Member Watt to sustain the decision of the Planning Commission and deny Variance No. 1192. Motion x Substitute motion was made by Council Member Hedges to continue this matter 'until the Planning Commission has addressed the issue of clerestory areas over garages. Motion x A second substitute motion was made by Ayes x x x x x x Mayor Turner to continue this item to Noes x October 25, 1993, to allow the staff to report back regarding the so- called "lost plans", etc., which motion carried. • ITEMS REMOVED FROM THE CONSENT CALENDAR Agenda Item No. 1. Report from the Utilities Department Utilities. recommending City Council authorize a Yard/ professional services agreement for Reservoir DESIGN OF 3.0 MILLION GALLON REINFORCED CONCRETE RESERVOIR; (16th Street (89) Utilities Yard) preparation of detailed plans and specifications by Daniel Boyle Engineering, Inc., for fee not exceeding $118,800. Motion x Council Member Hart moved to continue this item to October 25, 1993, and to direct the staff to come back with additional backup information to justify awarding the contract to the recommended bidder. The Utilities Director addressed the Council and stated that a detailed construction schedule has been prepared for this project which consists of many components, and if this award is delayed two weeks, it will delay all the other projects on the "critical path" and instead of a completion date of July 1; 1995, it will be July 15, 1995 before • the project can be turned on and activated. In addition, the time value of money is such that this project allows the City to save in excess of $2 million each year that it operates the groundwater project instead of purchasing the water from MWD. If the City Council were to continue this Volume 47 - Page 265 CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES ROLL CflLL October 11, 1993 101(13 matter for two weeks, it has a financial ramification that would equate to approximately $75,000 in water to be purchased. He indicated he could provide the additional information requested by Council Member Hart, but would like to see the City Council still proceed with the award of contract. Council Member Hedges concurred with the need for more information prior to awarding this contract and stated he will be supporting Council Member Hart's motion for continuance. He also stated he would like to see the "critical path" completion date remain at July 1, 1995. Ayes x x x x x x The motion was voted on and carried. Noes x PUBLIC COMMENTS 1. Stuart Williams, 1748 Bayport Way, Special addressed the Council regarding the Event "Walk on the Wild Side" event that took place Sunday, October 10 in which a pontoon pedestrian bridge overturned in Upper Newport Bay. 2. Madeline Arakelian, South Coast Refuse, Refuse /xiA addressed the Council and indicated she felt the City's bidding process is not fair, or equitable. 3. Bruce Lloyd, 1826 Toyon Lane, addressed Automated • the Council in opposition to the Refuse proposed Automated Refuse Collection Program. He stated that only 30% of the City's homeowners will be able to participate in the program because of the size of some streets and the types of trucks who will be lifting the containers, and felt those 308 will be discriminated against. He also questioned how disabled/handicapped/ elderly people will be able to handle the containers, and who will be responsible if someone gets hurt moving a container. 4. Jim McAfee, President, Newport Beach Tree Trim - Employees League, addressed the Council ming Srvs/ regarding the award of a noncompetitive Bidding & bid contract for the City's tree trimming operation at an estimated Privatiztn savings of $120,000 per year. He stated there is no service provided or function performed in this City that cannot be delivered at a lesser cost by providers employing non - benefit workers. They are against the proposed plan and have submitted their concerns in writing earlier today. In conclusion, they feel: 111) Our customers do not favor privatization of our work; 2) The IUP report is inadequate, by any standard, to base a conclusion on; 3) Assertions that City crews are not efficient are not supported by facts; 4) Estimates of cost savings accruing to privatization are speculative; Volume 47 - Page 266 COUNCIL MEMBERS • • L I CITY OF NEWPORT BEACH October 11, 1993 5) Efficient management of existing resources would enhance production, service and cost significantly; 6) Privatization will result in a clear diminution of service and quality of results; and 7) If the City is determined to reduce service levels, those objectives can be met efficiently without dismantling the current operation." Chuck Coburn, City Tree Laborer, addressed the Council and submitted a petition with 275 signatures from residents within the City protesting the privatization of the tree trimming operation. He stated he felt that a private contractor will not give the special care to personal items such as Champion Roses, antique mail boxes, special lighting fixtures, etc., when trimming trees as the City crews have done in the past. He also felt that if some of the employees proposed to be let go are hired by the private tree trimming contractor, they will not be able to still work in Newport Beach, but rather other cities in Los Angeles and Orange Counties. Virginia Herberts, Member of the Parks, Beaches & Recreation Commission, addressed the Council in opposition to the proposed plan to privatize the City's tree trimming operation. She also felt that privatization will be more expensive in the long run as the economy picks up, and that the City would benefit by keeping its experienced tree trimmers, the associated equipment, and the overall operation in- house. Delores Otting, 17 Hillsborough, addressed the Council again in opposition to the possibility of the City entering into a contract, without prior competitive bidding, for the tree trimming operation. She also requested a copy of the City's revised policy for Purchasing. She further questioned the City's bid process for waste hauling at the Balboa Yacht Basin and why the low bidder (Davey's Rubbish Co.) was not awarded the contract. Keith Hinkley, (no address given) also addressed the Council in opposition to privatization of the tree trimming operation, and also questioned certain salary raises reflected in the budget. The City Manager suggested Mr. Hinkley contact his office for clarification of the referenced salary increases. Volume 47 - Page 267 MINUTES Tree Trim- ming Srvs/ Bidding & Privatiztn CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES S \%\A October 11, 1993 ROLL CRLL INDEX iS Lux A In response to the comments made Tree Tri regarding privatization of tree ming Sry trimming, the City Manager discussed the financial impact the State's budget Privatiz shortfall had on the City of Newport Beach the last two fiscal years, and what effect it will continue to have in • the coming fiscal years. As a result, the staff was directed to study what areas could be privatized as a part of the budget process. Following review, staff recommended 31•service areas to remain as they are today; 22 service areas were to be investigated further, and 3 areas were designated for a Request For Proposals (RFP) process and proposals to be solicited. With regard to tree trimming, it was found that the City could save between $100,000 and $300,000 per year on .a budget of approximately $750,000; the actual - savings will depend upon the number of employees and equipment that the City retains and the actual bid from the private sector contractor. It is his opinion that the City must look to privatization to further reduce City expenses over the long term, and it is his job to provide the highest quality of service to the City at the lowest possible cost. Currently in Orange County, there are 15 cities contracting out 80% or more of their tree maintenance services. There are 11 existing tree trimming employees, with one employee retiring which reduces the • number to 10; one employee is transferring to Park Maintenance Division; 3 employees would be retained, which leaves six positions to be filled in the existing organization. The General Services Department currently has six vacancies which he feels can accommodate these positions. As a result of City Council discussion at the study session this afternoon, it would be his recommendation that the staff: 1) look at the bidding process; 2) clarify the impact on the tree trimming employees; and 3) that consideration be given to allowing employees to bid for the tree trimming work. He stated a report would be coming back in the very near future in response to these concerns. 5. The following persons addressed the Measure Council in oyoosition to Measure A - Proposed Open..Space Assessment.District - November 2, 1993 Advisory Election: Tom and Mike Sullivan, 121 Marine Avenue Ron Hendrickson, 1991 Port Claridge Place E.P. Benson, 1028 Westwind Way Helen &ieron, 3201 Fourth Avenue Volume 47 - Page 268 iS Lux A CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES d' October 11, 1993 ROLL CALL INDEX The following persons addressed the Measure A Council in favor of Measure A, and /or the October 10 "Walk on the Wild Side" event: Bobbie Lovell, 1242 W. Ocean Front Willis Longyear, Member of Newport Conservancy • Frank Robinson, 4614 Wayne Road Robert Shelton, Member of Newport Conservancy Pat Hollander, 213 Via Dijon Nancy Skinner, 1724 Highland Drive CONTINUED BUSINESS 14. BICYCLE TRAILS CITIZENS ADVISORY BT /CAC COMMITTEE VACANCY. Motion x Motion was made to defer (District 5) All Ayes Mayor Pro Tem Watt's appointment to October 25, 1993 to fill the unexpired term of Dorothy Beek ending December 31, 1993. 15. AVIATION COMMITTEE VACANCY. Aviation Committee. Motion x Motion was made to confirm appointment All Ayes of Bernard Pegg to fill vacancy as Homeowners Association Representative as result of resignation of Robert Olds; and confirm appointment of Charles "Chuck" Currier, as Alternate. CURRENT BUSINESS 16. ENVIRONMENTAL QUALITY AFFAIRS COMMITTEE EQA /CAC • VACANCY. Motion x Motion was made to accept with regret, (24) All Ayes resignation letter of Mike Bruze, and to defer (District 4) Mayor Turner's appointment to October 25, 1993 to fill the unexpired term ending December 31, 1993. 17. Report from Public Works Department PW /Rt 73 concerning POLICY COMMITTEE APPOINTMENT Freeway for Confluence Area of the Route 73 (74) Freeway, the Costa Mesa (SR55) Freeway, and the San Diego (I -405) Freeway. Motion x Motion was made to appoint Council All Ayes Member Jan Debay to serve on the subject committee. 18. Report from the City Manager concerning Election/ .LANDSCAPING AND LIGHTING . ASSESSMENT Measure A DISTRICT HEARING/PROTEST PROCESS. (39) The City Manager summarized his report and stated that if Measure A receives at least a 60% affirmative approval, he would recommend the City Council direct staff to do the following: 1) A notice be mailed to all assessable parcels in conformance with the 1972 Landscaping and Lighting Act. Volume 47 - Page 269 COUNCIL MEMBERS MOO � \\_A0q1A CITY OF NEWPORT BEACH October 11, 1993 2) The notice be supplemented with a letter that explains in clear language the protest process and time, place and manner of the two public hearings. 3) Conduct several information meetings throughout the community for the assessment engineer and legal counsel to answer any question of the public prior to the hearings. 4) Provide to the City Council a full and complete analysis of the protesting parcel owners prior to the hearings which will give the City Council adequate information on the number, area, and type of properties protesting. The City Manager also encouraged the City Council to not set a fixed percentage prior to the hearings which they would consider sufficient to stop the proceedings. The law sets a minimum of owners representing 508 of the area of the assessment district. The City Council should keep complete discretion before making any final decision. Discussion ensued, wherein the City Attorney advised that the City Council retains the discretion at all times not to go forward with the assessment district, but the City Council has to cease proceedings leading to formation of the district if a protest is received, written or oral, of 508 or more. For the purposes of a 508 calculation in which assessment district proceedings must cease, a non - response by a property owner is not counted as a protest. Harold Jasper, Member, Newport Taxpayers Alliance Against Measure A, addressed the Council and suggested consideration be given to the "kinds of controls that need to be established to prevent stealing the election per as" when the protest ballots are officially tabulated. Robert Shelton, Member, Newport Conservancy, and supporting Measure A, addressed the Council and stated he concurred in the recommendations enumerated by the City Manager relative to the protest procedures if Measure A passes. Ron Hendrickson, Member, Newport Taxpayers Alliance Against Measure A, addressed the Council and asked questions regarding the notice to be mailed to all property owners should Measure A receive approval, ballot procedures, etc. Volume 47 - Page 270 MINUTES INDEX Election/ Measure A CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES 09VAO *\%\J October October 11, 1993 • Motion All Ayes Motion • re x In response to Mr. Hendrickson's concerns, the City Manager reported that it will be the City's goal to make sure the integrity of the system is upheld with regard to the protest process and all that is involved. Stuart Williams, 1748 Bayport Way, and Tom and Mike Sullivan, 121 Marine Avenue, addressed the Council and discussed the formula the City will be using for calculating the protest votes. Following consideration, motion was made by Mayor Turner to approve the four recommendations contained in the City Manager's report should Measure A pass with a 60$ affirmative approval, with the understanding that the City Council shall approve all mailings related to the assessment district proceedings prior to sending out to property owners. 19. Memorandum from Utilities Department Utilities /, recommending adoption of proposed Grndwtr De-, resolution regarding the CITY'S Prj /Bonds INTENTION TO ISSUE TAX E33MPT OBLIGATIONS TO FUND THE CITY'S GROUNDWATER DEVELOPMENT PROJECT. Motion was made by Council Member Hedges to continue this item to October 25 in order for the Council to review the staff analysis that was submitted to the Utilities Committee on two different occasions. The City Manager pointed out that the proposed resolution is only an "inducement" document so that whatever time is spent on this project, that amount of money could be recovered from this date forward. He emphasized that adoption of the proposed resolution does not bind the City Council in any way to issue tax exempt obligations at a future date. Council Member Cox stated that by adopting the proposed resolution, the City Council is only responding to a technicality in the law, and by not taking such action sooner, it has cost the City $50,000 inasmuch as that is what the City could have earned from the $2 million the City has spent so far on this project. The concept of financing under today's financial conditions is very worthwhile to the City, and he felt the City should protect itself by adopting the proposed resolution so that the City does not lose any more money should it move ahead with the tax exempt bonds. Volume 47 - Page 271 COUNCIL MEMBERS N N"% VE CITY OF NEWPORT BEACH Mot on Noes Ix x x Ix Ix Ix Ix Motion All Ayes • • X October 11, 1993 Council Member Hart spoke against this item stating she did not feel the resolution was necessary, inasmuch as the City has been putting aside money for this groundwater project for many, many years. As a result, the City has saved almost the total amount to pay for the project, and what the City doesn't have, will be recouped within one and one -half years. She also stated she did not feel the project was worth going in debt for with tax - exempt obligations, and therefore, she will not be supporting the proposed resolution. Council Member Cox disagreed with the comments of Council Member Hart noting that for every million dollars the City spends on this project, the City saves $25,000 if it is financed, and therefore, he made a substitute motion to adopt Resolution No. 93 -71 declaring the City's intention to issue tax exempt obligations, which motion carried. Meeting adjourned at 10:25 p.m., to closed session on October 12, 1993, at 2:00 p.m. to discuss pending litigation regarding Reutz vs. City of Newport Beach, and Heinzel vs. City of Newport Beach. !r * ylr * yt * * * 4 7k !r The agenda for this meeting was posted on October 7, 1993 at 8:35 a.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. ATTEST: ( & Me /0 i i, J Volume 47 - Page 272 MINUTES INDEX Res 93 -71 J