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Home My WebLink About02/12/1996 - Regular MeetingROLL CALL Present Motion Ayes Abstained Motion All Ayes Motion All Ayes • CITY OF NEWPORT BEACH REGULAR COUNCIL MEETING vi Arc• r ...... :r rr ...r.e.. MINUTES INDEX N W W TIME: 7:00 P.M. H r w DATE: February 12, 1996 W �CE m Q w o° >r— Q Z w o W m M u o m CLOSED SESSION - 5:00 a.m. ]Refer to separate agend< from City Attorney] CLOSED SESSION REPORT PRESENTED - None RECESSED AT 7:00 P.M. RECONVENED AT 7:00 P.M. for reaular meetina Council Member Edwards asked that prayers be said foi Marion Bergesen who is recovering from surgery. x x x x x x x ROLL CALL x Reading of minutes of Regular and Special Meeting of x x x x x x January 22, 1996, was waived, approved as revised, anc x ordered filed. x Reading of minutes of Special Meeting of January 31, 1996, was waived, approved as written, and ordered filed. x Reading in full of all ordinances and resolutions under consideration was waived, and City Clerk was directed tc read by titles only. The Chamber of Commerce and the promoter made an informational presentation to the Council on the Newport Beach International Film Festival to be held on March 21- 31, 1996. Mayor Hedges requested that they come back on the 11th to give an update and also recommended that they contact Assistant to the City Manager Peggy Ducey regarding a Comcast presentation. City Manager Murphy gave a brief history of the award, its past recipients and presented the Dorothy Palen Award to Pete Antista, Utilities Superintendent. Public Works Director Don Webb introduced the new Utilities Manager Eldon Davidson. MATTERS WHICH A COUNCIL MEMBER WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING: None MATTERS WHICH A COUNCIL MEMBER MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT: Mayor Hedges requested that an item be brought back for consideration giving the City Manager authority to review Harbor permit applications with appeal to Council. i I Volume 50 - Page 49 MINUTES INDEX CITY OF NEWPORT BEACH k LIZ, III ROLL CALL H z3Wnxof~- 0WMMUOX N M W W February 12, 1996 INDEX ��n x CONSENT CALENDAR 5 yes The Following Hems were approved, except for those Items removed (4, 5 & 6): RESOLUTIONS FOR ADOPTION 1. Resolution No. 96.11 confirming the previous Res 96 -11 approval of LCP AMENDMENT NO. 43. (45 ) 2. Resolution No. 96 -12 of Intent approving an PERS Retrm amendment to the City's CONTRACT NO. 563 WITH Res 96 -12 THE PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) (38)C-563 to increase the Survivor Benefit from Level One to Level Three for Miscellaneous Employees and from Level One to Level Four for Safety Employees. 3. Resolution No. 96.13 authorizing the submittal of a CA Integrates USED OIL GRANT APPLICATION TO THE CALIFORNIA Waste Mgm Ed INTEGRATED WASTE MANAGEMENT BOARD. Res 96 -13 (44) 4. Removed from the Consent Calendar. 5. Removed from the Consent Calendar. • CONTRACTS AND AGREEMENTS 6. Removed from the Consent Calendar. 7. BOLSA PARK (CONTRACT NO. 2899) - Accept the Bolsa Park work; authorize the City Clerk to file a Notice of C -2899 Completion; and release the bonds 35 days after (38 ) the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code. 8. 1994 -95 RESURFACING AND SLURRY SEAL PROGRAM 1994 -95 Rsfc( (CONTRACT NO. 3043) - Accept the work; authorize & Slry Seal the City Clerk to file a Notice of Completion; and C -3043 release the bonds 35 days after the Notice of (38 ) Completion has been recorded in accordance with applicable portions of the Civil Code. 9. BIRCH STREET WIDENING OVERCROSSING /STATE Birch St ROUTE 73 DESIGN OVERSIGHT COOPERATIVE Wdng Ovrcrs AGREEMENT NO. 12 -248 (CONTRACT NO. 2931) - C-2931(A) Approve subject agreement with Caltrans. (3 8 ) 10. BIRCH STREET BRIDGE WIDENING Birch St Brd- • OVERCROSSING /STATE ROUTE 73 FINAL DESIGN Wdng Ovrcrs/ SERVICES (CONTRACT NO. 2931(A)) - Approve a State Rt 73 Consultant Agreement with Willdan Associates in the C-2931(A) amount of $264,595.00 plus a 1017o contingency. (3 8 ) Volume 50 - Page 50 CITY OF NEWPORT BEACH MINUTES ROLL CALL N Z oWA=°d3 :K } M w M w 0 February 12, 1996 INDEX 11. OCEAN FRONT SIDEWALK AND BALBOA PARKING Ocean Frnt LOT STREET LIGHT CIRCUIT 008 REPLACEMENT Sdwlk /Balboa (CONTRACT NO. 3063) - Approve contract change Pkg Lt St order to F. J. Johnson in the amount of $40,000, Light Crct and authorize a Budget Amendment (Refer to BA C -3063 029, agenda item 27) to transfer funds. (38 ) 12. GROUNDWATER DEVELOPMENT PROJECT Grndwtr Dvlp (CONTRACT NO. 3004 -V) - Approve Professional Prj Services Agreement for preparation of plans and C- 3004 -V specifications by Daniel Boyle Engineering, Inc., for (38 ) Dolphin Avenue and Tamura School Well Sites Improvements, 13. GROUNDWATER DEVELOPMENT PROJECT /FOUNTAIN Grndwtr Dvlp VALLEY WELL SITE EASEMENT AGREEMENT Prj /Ft. VallE (CONTRACT NO. 3004) - Approve the Well Site Well Site Easement Agreement and Option to Purchase C -3004 between the City of Fountain Valley and the City (38 ) of Newport Beach Dolphin Avenue Well Site Groundwater Development Project. 14. GROUNDWATER DEVELOPMENT PROJECT Grndwtr Dvlp (CONTRACT NO. 3004 -0) - Approve a Professional Prj Services Agreement with DMc Engineering fora not C- 3004 -0 to exceed fee of $139,550. (3 8 ) 15. GROUNDWATER DEVELOPMENT PROJECT Grndwtr Dvlp (CONTRACT NO. 3004 -Q) - Approve a Professional Prj Services Agreement with ASL Consulting Engineers C- 3004 -Q to prepare detailed plans and specifications for (38 ) Reach Nos. 3A & 3B for construction of a 4,700 foot long reach of 24 -inch diameter water pipeline for a fee not to exceed $97,300. 16. CORONA DEL MAR WATER MAIN IMPROVEMENT CdM Wtr Mn PROJECT (CONTRACT NO. 3073) - Award subject Prj contract to R.F. Paulus, Inc., in the amount of C -3073 $292,402.50 for Seaview and Marguerite Avenues (38 ) Transmission Mains. 17. JOINT AGREEMENT FOR THE IMPLEMENTATION AND Jt. Agm Impl OPERATION OF THE ORANGE COUNTY 800 Oper O/C 800 MEGAHERTZ COUNTYWIDE COORDINATION MHz Coord . COMMUNICATIONS SYSTEM (CONTRACT NO. 2755) Cmnctns Sys - Rescind the City Council's approval on May 22, C -2755 1995, authorizing participation in an 800 MHz Joint (38 ) Powers Agreement and approve the Joint Agreement Communications System. 18. PERSONNEL VACANCIES (66) , 19. CLAIMS - For Denial by the City Manager. (3 6 ) Terri Allman alleging Newport Beach police car backed into his car on January 7, 1996 on Balboa Island. Volume 50 - Page 51 CITY OF NEWPORT BEACH MTN[TTF,.1R ROLL CALL H Z3MgX0I~- owa=°L93 m � } W w February 12, 1996 -- - - - — INDEX Henry Fernandez alleging he injured his arm and • shoulder as a result of trip and fall in driveway due to holes and cracks at the Balboa Post Office, 204 Main Street, on August 30, 1995. Bernard P. O'Sullivan alleging personal injuries received on July 28, 1995, while riding a bicycle as a result of a downed road sign (City contractor doing work on the Fountain Valley Groundwater Development Project) in the City of Huntington Beach on northbound Brookhurst Street, 808 feet south of Banning. The 3700 Building requesting reimbursement for costs incurred with repairing and replacing the plumbing problems caused by dirt entering the system at 3700 Campus Drive. Hamid Rafatjoo alleging property damage at 1524 Anita Lane as a result of roots from the City's trees lifting the claimant's driveway and breaking sprinkler pipes. 20. PLANNING COMMISSION AGENDA - February 8, (68 ) 1996. 21. NEWPORTER NORTH SUBDIVISION - Approve Final Newporter No. Maps of Tracts 15011, and 15243 with the findings Subdvsn /Tract and conditions of approval as set forth in Exhibit 15011/15243 "A" for a unit of the Newporter North Subdivision, 1501 Jamboree Road. 22. COUNCIL POLICY MANUAL REVIEW - Receive Council Polic proposed policy revisions and set for review on Manual Review February 26, 1996 (6 p.m.). (6 9 ) 23. SPECIAL EVENT PERMIT APPLICATION NO. 95 -362 - Special Event Approve, subject to conditions in the staff report, Apl 95 -362 application for the 26TH ANNUAL WALKAMERICA (27) FUNDRAISER AND WALKATHON, to be held on Sunday, May 5, 1996. 24. HARBOR PERMIT APPLICATIONS: Harbor Permit Apl (51) No. 104 -1801 - Approve, subject to conditions in the staff report, request by Bahia Corinthian Yacht Club to repair the bulkhead bayward of 1601 Bayside Drive. • No. 116 -820 - Approve, subject to conditions in the staff report, request by Jeanette Segerstrom to repair the residential bulkhead bayward of 820 Bay Avenue. Volume 50 - Page 52 CITY OF NEWPORT BEACH MT1VTTT14"Q ROLL CALL w¢�0 I owQxvc�3 01 MWWO �� °¢ February 12, 1996 -- � I v a . N INDEX • No. 124 -3400 - Approve, subject to conditions in the staff report, request by Duncan McIntosh to temporarily revise the commercial docks bayward of Lido Village at 3366 Via Lido and at the Newport Dunes at 101 North Bayside Drive. 25. FIRE AND MARINE DEPARTMENT REORGANIZATION - Fire /Marine Approve reorganization of Department. (41) 26. MASSAGE TECHNICIAN PERMIT REVOCATION OF Massage Perm KWANG OK CLOOTEN - Uphold the Findings and (27 ) Recommendations by the City's Hearing Officer for revocation of subject permit. 27. BUDGET AMENDMENT: (40 ) BA -029, $60,000 - Transfer of Tidelands Funds to General Fund (Ocean Front Sidewalk and Balboa Parking Lot Street Circuit 008 Replacement Project). ITEMS REMOVED FROM THE CONSENT CALENDAR 4. Proposed Resolution of intent to amend Section Planning /Zng 20.06.070(A -2) of the Municipal Code to revise (9 4 ) REGULATIONS FOR ILLUMINATED SIGNS. . Council Member Watt questioned whether the proposed ordinance has a provision to bring non- conforming signs into conformance within a certain period of time. City Attorney Burnham indicated that a provision could be considered which would provide an amortization period over a reasonable period of time, possibly three to five years (or less). Council Member Watt indicated that she would prefer to have the period as minimal as possible. lotion x Council Member Watt moved to adopt Resolution Res 96 -14 k11 Ayes of Intent No. 96 -14 with the amortization period amendment included for consideration and refer the subject amendment to the Planning Commission for public hearing. 5. Proposed Resolution approving DESTRUCTION OF Risk Mgm CERTAIN RISK MANAGEMENT RECORDS, AND (76) RECORD RETENTION GUIDELINES. Mayor Pro Tern Debay said she was contacted by Tom Hyans, Central Newport, voicing concerns about the possible destruction of records • pertaining to accidents on the Ocean Front walk. City Attorney Burnham explained the procedure and assured her that a master list has been established and these documents will be retained. I Volume 50 - Page 53 CITY OF NEWPORT BEACH MTNTTTF.q ROLL CALL ~ Z:KMM o W W >_ A= W u W 0 U X February 12, 1996 INDEX N�n x Mayor Pro Tern Debay moved to adopt Resolution Res 96 -15 A yes No. 96 -15 approving the destruction of certain Risk Management records and establishing a records retention guideline. 6. LEGISLATIVE ADVOCACY SERVICES Agreement for Legislative Professional Services with Kenneth Emanuels & Advcy Sry Associates. (3 5 ) Council Member Glover noted that in the past few months the state lawmakers have been following a number of legislative matters for the City and questioned whether the firm of Kenneth Emanuels & Associates would only be working on the coastal zone issues. City Manager Murphy explained that the contract starts at $1,500 per month for one issue (coastal zone), however staff is requesting authorization to expend up to $3,000 per month anticipating adding other issues such as the local coastal boundary, non - resident library fees, methane gas mitigation, bay discharge legislation and oil moratorium resolution. Council Member Glover questioned how staff would prioritize the • issues. Mr. Murphy explained that the local coastal boundary issue has been submitted and it has been determined that it is very important to quickly meet with the constituent groups that will oppose it and so Mr. Emanuels has been asked to quickly get on board with that issue. Motion x Council Member Glover moved to approve the Kenneth All Ayes agreement for services with Kenneth Emanuels & As .professional Emanuels & Associates for a not -to- exceed fee of C -3083 $36,000 annually beginning February 1, 1996 for a (38 ) twelve -month period. PUBLIC HEARINGS 28. Public hearing regarding CERTIFICATE OF CA Yellow CONVENIENCE AND NECESSITY FOR CALIFORNIA Taxicab YELLOW TAXI CAB. (27 ) City Manager Murphy explained that the municipal code regulates taxicab businesses and requires a public hearing and approval by the City Council prior to the issuance of certificate of public convenience and necessity to operate taxicabs in the City. He further explained that currently there are eight taxicab companies • authorized to operate a total of 158 vehicles in the City and all eight companies also service other Orange and Los Angeles County cities. He reported that staff reviewed the subject application and determined that it meets all of the necessary requirements and recommends approval of the subject request. Volume 50 - Page 54 CITY OF NEWPORT BEACH MINUTES ROLL CALL " Z owA=°;3 N M 3pMM } w 010 w - February 12, 1996 INDEX • Council Member Glover voiced concerns about cab drivers throwing cigarette butts and gum wrappers out of the car windows and said they should be told it is inappropriate. Mayor Hedges opened the public hearing, and hearing no comment, closed the hearing. Mr. Murphy explained that the municipal code requires that Council hold public hearings prior to issuing certificates of public convenience and necessity, however they have the option of amending the code to change that requirement. He also noted that consideration is being given to have the County regulate taxicabs and it is his understanding that they have initially agreed to review the proposal and be the reviewing body for all 31 cities in the County. Council Member Edwards questioned whether the approval could be granted at staff level and Mr. Murphy indicated that it can be handled that way. Motion x Council Member Edwards moved to uphold staff's Ayes recommendation to approve the issuance of a certificate of public convenience and necessity to operate the four vehicles as requested by the applicant. Council Member Cox suggested that the City assign this review and approval process to the Orange County Transportation Authority rather than to staff. Mayor Hedges requested that staff bring this item back to Council for consideration and directed staff to write a letter to the League to initiate the action. 29. Public hearing regarding ARMSTRONG NURSERY GPA 93 -3 (A) (formerly Amling's) located at 1500 East Coast (45 ) Hiahway. City Clerk Harkless informed the Council that the applicant has requested that the hearing be continued until February 26, 1996. Council Member Watt said she either would like to hear the matter now or delay it until after there has been a review and analysis of the Newport Center and Fashion Island area to determine if the areas are being utilized to the highest and best use. • Mayor Pro Tern Debay and Council Member Edwards voiced concerns about not honoring the applicant's request. Mayor Hedges opened the public hearing. Volume 50 - Page 55 CITY OF NEWPORT BEACH MINTYPER ROLL CALL ~ Z o W 3p¢ggXOH w } A= w u W 0 Cr February 12, 1996 INDEX No n x Council Member Watt voiced concerns with the GPA 93 -3 (A) applicant requesting entitlement for another 5,000 square feet without submitting a proposal for a specific development on the site. She said she would like to discuss and evaluate what the City wants to see all along that stretch of Newport Center, therefore she moved to deny the applicant's request. Acting Planning and Building Director Temple gave a brief overview of the applicant's request and indicated that typically an increase in entitlement is usually not considered without a specific project. In response to Mayor Pro Tern Debay's question about proceeding with the rezoning without the entitlement, Ms. Temple indicated that this would not alleviate Council Member Watt's concerns with the area. The Council discussed the possible allowable uses for the site since it is unclassified and the fact that it is somewhat of an island because it is separated from the Newport Center by the Country Club. Council Member Watt indicated that it has been a subject of discussion with The Irvine Company and the City should find • out what their plans are. Russ Fluter, 1500 East Coast Highway, applicant, briefly reviewed the request and noted that nurseries, are allowed in retail zones only. He indicated that a couple of months ago residential use was proposed behind this property which requires a General Plan change and he thought if he didn't pursue this at this time it might not be allowed. He stated that 5,000 square feet was allowed for the existing nursery building on a 43,000 square foot site (11% of the buildable area). He said increasing the entitlement to 10,000 square feet is not a high intensity use and still only 20% of the buildable area. In response to Mayor Pro Tern Debay's question about why he asked for this matter to be continued, Mr. Fluter explained that at 2:00 p.m. today it came to his attention that there were concerns with his request, however he indicated that if Council wants to proceed tonight it is all right with him. Hearing no further testimony, Mayor Hedges closed • the public hearing. Mayor Hedges indicated his support of the motion to deny the request because of the need for some planning in the area. He voiced concerns about changing the zoning to retail and service commercial and doubling the entitlement on it. Volume 50 - Page 56 CITY OF NEWPORT BEACH MINUTES ROLL CALL W W ZMWwo p CE o Wg2U(93 } W W > °� ~ February 12, 1996 INDEX • He said this is an isolated area and presently there GPA 93 -3 (A) is pretty low traffic use on a very high traffic roadway. He said building something without further study as to the impacts on the access could create potential problems. He said denying the request will give the City an opportunity to conduct some of the planning that needs to happen in the area. Council Member Cox voiced concerns with denying the request since the applicant has paid the fees and asked if it could just be postponed indefinitely until the City has had an opportunity to review and analyze the area. He said the current entitlement relates back to the way it was applied in 1988, which was very arbitrary. Motion x Council Member Cox made a substitute motion to table Indefinitely the request for approval of Resolution No. 96 -16 approving GENERAL PLAN AMENDMENT NO. 93 -3(A); Resolution No. 96 -17 approving LOCAL COASTAL PROGRAM AMENDMENT NO. 44; and ORDINANCE NO. 96 -3 (AMENDMENT NO. 840) approving changes to Title . 20 of the Municipal Code, specifically Districting Map No. 48. Ms. Temple explained that denial of the request would leave in place the current land use designation and entitlement of 5,000 square feet and any change would be subject to City review through the use permit process. Council Member Edwards and Glover spoke in support of the substitute motion. Council Member Watt also spoke in support of the motion stating that she does not want to approve the request at this time and also noted that the nursery is only one of two in the entire City. All Ayes The substitute motion was voted on and carried. 30. Public hearing regarding GENERAL PLAN GPA 95-1(B) AMENDMENT NO. 95 -1(B) AND LCP AMENDMENT LCPA 42 NO. 42. (45) Acting Planning and Building Director Temple explained that the proposed amendments would allow the Planning Commission and /or the City Council to include the land areas that have been previously dedicated in the calculation of residential density or commercial intensity of properties, when it is determined to be in the public interest to do so. She indicated that the amendments are primarily housekeeping in nature and the added language accomplishes the above. Volume 50 - Page 57 CITY OF NEWPORT BEACH MINUTES ROLL CALL H Z:KMM oWA=OU W - W w 0 -3 ¢ February 12, 1996 INDEX Council Member Waft questioned the phrase. GPA 95 -1 (B) when it is determined to be in the public interest to do so" and specifically how it pertains to Mariners Mile and also asked what is the public interest that would prevail. Ms. Temple explained that it is enabling language and it is based on the circumstances surrounding a particular case. She said the way the amendment is written it doesn't require that the calculation include the dedication areas, however it allows it. Mayor Hedges opened the public hearing and hearing no comment, closed the hearing. Motion x Council Member O'Neil moved adoption of Resolution No. 96 -16 approving the GPA 95 -1(B); and Resolution No. 96 -17 approving LCP Amendment No. 42. Mayor Hedges amended the motion to adopt Res 96 -16 Resolution No. 96-16 and 96 -17 with the enabling Res 96 -17 clause changed to read, "The calculation shall Include dedication areas." The Council briefly discussed the proposed L amendment and the change in meaning. All Ayes The motion, as amended, was voted on and carried. PUBLIC COMMENTS • Council Member Edwards thanked Dave Carmichael. the Library Foundation, the Steele Foundation and those that assisted with obtaining a $500.000 endowment for the libraries. ORDINANCES FOR ADOPTION 31. Proposed ORDINANCE NO. 95 -68, Ord 95 -68 Oversized/ AMENDING SECTION 12.40.055 OF THE Non - Motorizes NEWPORT BEACH MUNICIPAL CODE Vehicles REGARDING PARKING OF CERTAIN VEHICLES (8 5 ) (RECREATIONAL VEHICLES) IN RESIDENTIAL DISTRICTS. City Manager Murphy briefly explained the proposed ordinance and stated that staff recommends approval of the ordinance in its current form. Volume 50 - Page 58 CITY OF NEWPORT BEACH MINUTES ROLL CALL H Z oummuuom W Cr >- PMM W 0 w February 12, 1996 INDEX • In response to Council Member Glover's questions about the areas covered by this ordinance, City Attorney Burnham explained that the ordinance defines areas within a particular zoning district, however it does not apply to Specific Plan areas. He further noted that staff is reviewing the Specific Plan areas and may bring back an amendment for the inclusion of those areas. Donald Ramsay, 301 Enero, Newport Beach, quoting the Vehicle Code and reading from two court cases questioned where the signs would be posted and what the cost would be since the ordinance cannot be enforced without the proper signage. City Attorney Burnham stated that Mr. Ramsay's information is correct and the traffic engineer has been advised that enforcement cannot begin until the signage is in place. He said staff is in the process of determining where the signs will be placed and until that is complete, the cost is unknown. Notion x Council Member Edwards moved adoption of Awes Ordinance No. 95 -68. 32. Proposed ORDINANCE NO. 96 -4, Ord 96 -4 Special Event AMENDING CHAPTER 5.10 OF THE NEWPORT (27) BEACH MUNICIPAL CODE RELATING TO SPECIAL EVENT PERMITS. City Manager Murphy explained that currently the code requires Council approval for fireworks displays and this code amendment will give authority to staff to grant the requests without Council approval. Notion x Council Member O'Neil moved adoption of All Ayes Ordinance No. 96 -4. CONTINUED BUSINESS 33. 1996 CITY GOALS. 1996 City Goals City Manager Murphy reviewed with the Council (33 ) his suggestions for reviewing the proposed issues in order to select five or seven priorities for additional focus during 1996 by City staff. ® Council Member Cox reviewed the list and noted that he feels that to look at some of these areas as explicit goals is misleading. He pointed out that some of these areas are more policy issues or processes and others are projects. Volume 50 - Page 59 ROLL CALL Motion All Ayes • • CITY OF NEWPORT BEACH MINUTES N W zgwwo O M Q¢(9 W >- M w U w >H °¢ 0 X February 12, 1996 I After determining the method to select the top priorities, the Council by straw votes selected the following five areas for additional focus during 1996: 1) Downcoast Annexation 2) Fiscal 3) Airport 4) Economic Development 5) City Landfill Disposal 34. ECONOMIC DEVELOPMENT COMMITTEE: Economic Committ e x Council Member Edwards moved to confirm appointment of Roy Freeman, a representative from the Newport-Mesa Association of Realtors, to fill vacancy created by resignation of Gil Foersfer. 35. CITIZENS ADVISORY COMMITTEES CAC (24) The following were confirmed: Bicycle Trails (District 1) Mayor Hedges' reappointment of Peter Beck and Gary McKee. Environmental Quality Affairs (District 1) Mayor Hedges' reappointment of Mike Kilbride and Randy Johnson. (District 3) Council Member Glover's appointment of Janie Arnold (to fill vacancy created by resignation of Ed Hepner). Harbor Quality Affairs (District 1) Mayor Hedges' reappointment of Leonard Miller. CURRENT BUSINESS 36. ORANGE COUNTY BANKRUPTCY JOINT AGREEMENT. O/C Bank Jt. Agm City Manager Kevin Murphy reported that the joint C -3042 agreement has been recommended by staff for (3 8 ) adoption to implement the recovery in the Orange County bankruptcy case. He noted that there has been a Technical Advisory Committee from the League of Cities which has been greatly involved in the review and Administrative Services Director Danner has been intimately involved in the review of this issue. He commended Mr. Danner for his due diligence on this matter and Mayor Hedges echoed his commendation. I Volume 50 - Page 60 NDEX Dev e ruptc CITY OF NEWPORT BEACH MINUTES ROLL CALL N Z3 o W > %Axon ; w _ ° w d 3 February 12, 1996 INDEX • Administrative Services Director Dennis Danner O/C Bankruptc reviewed the highlights of the staff report. He Jt. Agm noted that since the County declared bankruptcy on December 6, 1994, Council has already approved two agreements with the County. The first was the Comprehensive Settlement Agreement which returned 80% of the City's investments in the Investment Pool which totaled $13.6 million leaving a balance of $3.5 million in the pool. At that time the Council also chose to become an Option A participant in the Settlement Agreement which basically said the City would not sue the County for further recovery of its losses and assign its claims to third parties. The second agreement was the Recovery Plan which was worked out amongst the Orange County Business Council, the Orange County Division of the League of Cities, the County itself and the State Legislature whereby the non - school Option A participants agreed to subordinate their claims to the vendors in the school so they would become whole first and further agreed that any recovery of these balances would be solely through litigation against. . third party defendants. In addition, on December 1, 1995, all other claims against the County were required to be filed with the bankruptcy court (monies other than the pool investments), and accordingly the City filed 46 claims with the bankruptcy court totaling approximately $3.6 million (withheld property tax, court fines and forfeitures, any outstanding billings with the County, eminent domain deposits, dock leases, property transfers taxes, etc.). He indicated that the most important agreement the City will approve is the Joint Agreement, which is not normally required to be filed in bankruptcy proceedings but because of the complexity and magnitude of this bankruptcy the County felt it was In its best interest to have a joint agreement with each Option A Participant prior to submitting its Plan of Adjustment with the bankruptcy court. The Joint Agreement provides: 1) no diversion of other city funds to implement a Plan of Adjustment; 2) a designated representative and not the County will control the litigation against third party defendants; 3) litigation proceeds have been reordered to favor schools and other Option A Participants: 4) cities will have a representative on • the Orange County Recovery Committee; and 51 within 30 days of a bankruptcy court order approving the joint agreement the County will distribute the non-disputed portions of the cities County administered accounts (approximately 75 %or$1 million for Newport Beach). In approving the joint agreement the City agrees not to reject the Plan of Adjustment containing provisions Volume 50 - Page 61 ROLL CALL Ion All Ayes • CITY OF NEWPORT BEACH MINUTES zawwo°¢ Owpmuux M CE: > a: w w >� February 12, 1996 IND incorporating the material terms of the joint 0/C Bank agreement. In other words, if the Joint Agreement Jt. Agm is approved, the City can't oppose the Plan of Adjustment at a later time. The City also waives all rights to object to that plan, waives all rights to post petition interest on the deficiency claims and only recover such interest from County available cash or litigation proceeds. Also, certain school participant deficiency claims can be paid before the Option A Pool Participant claims (non - school claims). In addition to the joint agreement, the City received a disclosure statement from the County which includes a description of the events preceding the County Bankruptcy, the County Chapter 9 case, a description of the Plan of Adjustment, a description of County operations and projected cash flows and unaudited County financial statements for the period ending June 30, 1995. He noted that staff has reviewed all the documents and recommends approval of the Joint Agreement and authorization for the City Manager to execute the Plan of Adjustment if it does not materially differ from the approved joint agreement. X Council Member Glover moved to approve the Joint Agreement between the City of Newport Beach, the County of Orange, the Official Investment Pool Participants' Committee and all Option A Pool Participants: and authorized the City Manager to execute the Plan Adjustment provided It conforms to the Joint Agreement upon its presentation to the City. Meeting adjourned at 8:35 p.m., in memory of Mary Reuland, a well -known community activist, Abraham Lincoln and George Washington. ..................... The agenda for this meeting was posted on February 2, 1996 at 3:40 p.m., and the supplemental agenda was posted on February 9, 1996 at 10:45 a.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Mayor v Vp ;. ATTEST: O_ ? 6?J&7Vr1e1f % L/ City Clerk C�Cr��s ear Volume 50 - Page 62 IEX ruptc ROLL CALL Notion All Ayes 0 CITY OF NEWPORT REGULAR COUNCIL MEETING SUPPLEMENTAL AGENDA BEACH MINUTES H Z 0WA=L) to 3 C7 w L j W o W x O W o J L9 Q 3 PLACE: Council Chambers TIME: 7:00 P..M. DATE: February 12, 1996 I SUPPLEMENTAL AGENDA - CONSENT CALENDAR ORDINANCE FOR INTRODUCTION S37. Proposed Ordinance 96 -5 amending Chapters 5.28, 5.96 and 10.54 of the Newport Beach Municipal Code Pertaining to Public Nudity. x (Approved as part of Consent Calendar) The agenda for this meeting was posted on February 9, 1996, at 10:45 p.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Mayor ATTEST: City Clerk q�4i f� �'iy CST � Y4•. i y Volume 50 - Page 63 NDEX