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Home My WebLink About05/16/1996 - Adjourned Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Adjourned Regular Meeting May 16, 1996 - 5:00 p.m. ROLL CALL Present: O'Neil (arrived late), Edwards, Debay, Cox, Glover, Waft and Mayor Hedges Absent: None 30. MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF NEWPORT BEACH, THE IRVINE RANCH WATER DISTRICT AND THE ORANGE COUNTY WATER DISTRICT REGARDING THE WETLANDS WATER SUPPLY PROJECT AND AN INTEGRATED REUSE ALTERNATIVE PROJECT (comd. from Supplemental Agenda of 5113196). Mayor Hedges explained that the Regular Meeting of May 13, 1996 was adjourned to tonight to continue the discussions on the proposed MOU between the City, the Irvine Ranch Water District (IRWD) and the Orange County Water District (OCWD) (Item #30 on the supplemental agenda). Bud Quist, Director, Orange County Water District Board, reported that the OCWD Board authorized their general manager to enter into negotiations and work on the agreement with the City of Newport Beach and the IRWD regarding the Green Acres project and the intertie to reuse wastewater from IRWD. He explained that since the Board did not have time to review the MOU fully they approved it in concept subject to final review. He indicated that the president of the Board will call a special meeting to discuss the MOU, however it probably will not be held before the Regional Board meeting scheduled for Monday, May 20, 1996. He stated that historically the Board has been supportive of the • Green Acres project and also noted that the concerns that the general manager had were resolved. He explained OCWD's conceptual understanding of the proposal. In response to Council Member Watt, Don Owens, Director, Orange County Water District Board, explained that procedurally the Board was reluctant to take full action on the MOU because they had not had an opportunity to fully review it. Secondly, he said that there were concerns about the financial commitment because the Board has been trying to pare back their budget for the past four months. He said they have just deleted $19 million from the budget and this project would require adding $7 million back into it. He said the project has been authorized for some time but didn't have the economics to proceed as of budget time this year. He explained that the OCWD will not proceed with construction of the facilities until the City has developed the end user agreements enough to guarantee the use of the project and then they will rapidly build the project. Mr. Quist reported that the figure of 7.8 million gallons per day used in the agreement was not disputed at the meeting. He said his concern was if the number were increased would the pipes be able to handle the additional water. He said the engineer reported that the pipes will be built to handle 11.6 million gallons per day since the project will not be built just for this purpose. CLOSED SESSION - 5:15 p.m. fPursuant to G.C. Section 54956.9(cll •RECESSED AND RECONVENED AT 6:20 P.M. CLOSED SESSION REPORT Mayor Hedges announced that the Council discussed all aspects of the proposed MOU, including the requirements imposed on the various parties, the finances involved, and the ultimate outcome of what the MOU is supposed to attain. Volume 50 - Page 150 IRWD (MOU) (74) City of Newport Beach City Council Minutes May 16, 1996 INDEX Council Member Watt thanked the parties who have worked on this proposal and said she hopes that they continue to work in good faith. She especially thanked the City staff, in particular Bob Burnham, for his work on this proposal. Motion by Council Member Watt to not support the proposed MOU at this time based • on considerable uncertainties and in light of these unresolved issues: 1) the lack of an agreement with OCWD for the intertie, which is one of the most critical parts of the agreement, and 2) the city's commitment to a financial responsibility for the issues involved with the diversion project, which are significant, and Council is not interested in. She included in the motion that the MOU not be approved prior to the regional board meeting on Monday, but that the parties continue to work for the best solution for bay water quality through an agreement and a project. Bob Caustin, Defend the Bay, expressed sorrow that an agreement was not reached. He said he was hopeful that the options could have been implemented as an alternative to the project. He said he hopes the City moves forward and attempts to establish the six users for the Green Acres project, which may help satisfy the problem in the future, as well as recycle some water. Darryl Miller, 16 Glorieta West, Irvine, President of IRWD, applauded everyone involved in the negotiations. He said he and the IRWD are committed to reaching an agreement (if not tonight, then in the future) and to continue working in good faith. Mayor Hedges reiterated Council Member Watt's thanks to staff and the other agencies. Evie Compton, 56 Balboa Coves, voiced concerns about the removal of support for Marilyn Brewer's bill, the City's potential liability, the requirement to pay for the project, the project being year round, the requirement that the project be completed by October of 1997, and the plans not to test the water in the channels of Balboa Coves. City Attorney Burnham explained that in the summer months the plan is to divert water from the creek into the ponds and return the flow into the creek. • George Stevens expressed shock at the series of events that has occurred and commended Council Member Watt's motion to not approve the proposed MOU. He voiced concerns about the conditions for execution of the MOU as stated in Section 5. He said he feels the action to present the proposed MOU one hour before the meeting was a planned devious move by the IRWD. City Attorney Burnham explained that another iteration of the MOU was presented to the Council for Monday's meeting and there have been 6 or 7 redrafts before this meeting. He stated that nothing devious has occurred and the draft of the MOU wasn't completed until after 5:00 p.m. today due to the complexity of its various components. Nancy Gardner, 323 Jasmin, CdM, spoke in support of the proposed motion and stated that the proposed MOU is flawed. She also questioned whether the wording on page 13, section I was correct or if it should state that the deadlines for completion of the various components of the Integrated Reuse Project shall "not" be extended by virtue of any litigation, administrative action... City Attorney Burnham confirmed the correction. Bud Revely, 508 38th St., questioned how the Council could even consider entering into an agreement that had just been presented to them. Mayor Hedges explained that the Council was fully briefed by City Attorney Burnham, who has been actively involved in the entire process. Mr. Revely asked what position the City would take on Monday. Jan Banderscoop ( ?), voiced concerns about the City getting into the business of finding six end users for the reclaimed water and urged them not to put reclaimed water on the school grounds since it might jeopardize the health of the kids. He also questioned why IRWD is demanding that a permit be granted at the hearing on Monday if they are • working in good faith to resolve the issues. Jack Skinner said he was hopeful that the Green Acres project was one that all parties concerned could agree on. He questioned where the City would go from here and said he hopes the City argues against the permit at the hearing on Monday. Volume 50 - Page 151 • • • City of Newport Beach City Council Minutes May 16, 1996 Audrey Grundy, 811 Via Lido Sound, spoke in opposition to the Council approving an agreement that would commit the taxpayers money to paying legal fees associated with this project. Larry Leifer said he feels this is a very unfair situation and that the IRWD has acted in a very aggressive manner and has the ability to force the City to take a subservient role. He urged the Council to support the proposed motion. Rick Sanders, CdM, concurred with the formation of a committee or group to be devoted to the improvement of water quality in the Upper Newport Bay, however suggested that the section be modified to make this a requirement, not just a consideration. Council Member Watt restated her appreciation to the staff and all parties involved and the motion as originally presented and since it had not been stated by the Mayor, added that in the absence of an agreement memorialized by the City of Newport Beach in the properly noticed special meeting, that the City oppose the project in the strongest possible terms. The motion carried by the following roll call vote Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None ADJOURNMENT The meeting was adjourned at 6:45 p.m. to Tuesday, May 28, 1996 at 5:00 p.m. (Closed Session) and 7:00 p.m. (Regular Meeting). R #R #RR #R #FRiR # #R The Notice of Adjournment for the Regular Meeting of May 13, 1996, adjourning to this meeting was posted on May 14, 1996 at 5:35 p.m. on the City Hall Bulletin Board outside of the City of Newport Beach Administrative Building. Attest: Abzs-D Mayor x(/e7 City Clerk Volume 50 - Page 152 INDEX