HomeMy WebLinkAbout11/12/1996 - Regular Meeting•
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CITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
November 12, 1996 - 7:00 p.m. INDEX
CLOSED SESSION - 6:00 p.m.
- None
ECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
ROLL CALL
Present: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges
Absent: None
Pledge of Allegiance by Council Member Edwards.
Invocation by Reverend Lloyd H. Sellers, Chaplain, Hoag Memorial Hospital,
Presbyterian.
Presentation of Home Beautification Awards by Mayor Hedges together with
Gordon Kilmer, Chairman, Environmental Quality Affairs Citizens Advisory
Committee Member and Chairman of the Sub- Committee in charge of
Awards Presentation to four residents from the Newport Beach Community
who have shown outstanding care in the maintenance of their properties:
Elizabeth James, Old Corona del Mar; Marsha Voss and John and Nancy
Larsen, Newport Heights. Also, Mr. Kilmer accepted an award on behalf of
Joseph and Flora Hill, Corona del Mar, who were not able to be here. Mr.
Kilmer added that he was asked by Mike Kilbride, Committee Chairman, to
personally thank the Council and especially Council Member Jean Watt for
her dedication to environmental issues over the past eight years, and
dedication to the concept of community service.
Motion by Mayor Pro Tem Debay to waive reading of the minutes of the Regular
Meeting of October 28, 1996, approve as written and order filed. The motion
carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes:
None
Absent:
None
Abstain:
None
Motion by Mayor Pro Tom Debay to waive reading of Ordinances and Resolutions
under consideration, and directed City Clerk to read by titles only. The motion
carried by the following roll call vote:.
Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes: None
Absent: None
Abstained: None
MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A
FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON-
DISCUSSION ITEM):
• Council Member O'Neil said that he visited the Newport Nautical Museum
recently, and stated that the new exhibit of oil paintings of old Clipper Ships and
Square Riggers is quite impressive, wherein he encouraged the public to view the
exhibit.
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City Council Minutes
November 12, 1996
101
• Council Member Glover requested a report back (Council Meeting of December 9)
regarding the status of Dover Drive (where it is in the process with the County)
concerning the non - widening of the street.
•
• Council Member Glover requested a report back (Council Meeting of December 9)
regarding the status of changing the composite representation of each City on the
COG.
CONSENT CALENDAR
ORDINANCE FOR INTRODUCTION
1. Removed from the Consent Calendar (ORDINANCE NOS. 96 -42 & 43).
2. INTRODUCE ORDINANCE NO. 96 -44 AMENDING CHAPTER 5.15 OF
Ord 96 -44
THE NBMC PERTAINING TO RESIDENTIAL BUILDING RECORDS.
Residential Bldg
Introduce ordinance, pass to second reading and adoption on November 25,
Records (68)
1996.
RESOLUTIONS FOR ADOPTION
3. ADOPT RESOLUTION NO. 96 -92 AUTHORIZING THE CITY MANAGER
Municipal Fndg Grp/
TO EXECUTE THE MASTER EQUIPMENT LEASEIPURCHASE
Lease Purchase Equip
AGREEMENT WITH MUNICIPAL FUNDING GROUP (Police
Agm /Police SIT Plan
Department's Strategic Information Technology Plan).
Res 96 -92 C-3100(38)
4. ADOPT RESOLUTION NO. 96 -93 CONCERNING THE STATUS OF THE
PW /Requalfctn
CIRCULATION ELEMENT FOR THE CITY OF NEWPORT BEACH
•
Orange Cty Trnsp
(Requalification for Participation in the Orange County Transportation
Auth /Arterial Hwy
Authority's Arterial Highway Financing Program and Measure M Streets and
Fnds Res 96 -93 (74)
Roads Program).
5. Removed from the Consent Calendar.
CONTRACTS AND AGREEMENTS
6. - 12. Removed from the Consent Calendar.
13. CONSULTANT AGREEMENT WITH EMMET BERKERY, P.E.
Emmet Berkery/
(PROJECT MANAGEMENT SERVICES CONTRACT NO. 3074). Approve
Consultant
Consultant Agreement with Emmet Berkery, P.E., for Project Management
C -3074 (38)
Services during F.Y. 1996 -1997 at a maximum fee of $78,000; and authorize the
City Manager and City Clerk to sign the Consultant Agreement.
14. EL PASEO STORM DRAIN (CONTRACT NO. 3074) PROJECT. Authorize
El Paseo Strm Drn
right -of- entry, contract delay, and liquidated damages payment to Bahia
C -3074 (38)
Corinthian Yacht Club in the amount $45,000.
15. CASTAWAYS PASSIVE PARK (CONTRACT NO. 3078) - CONCEPTUAL
Castaways Psv Prk
PLAN APPROVAL AND AUTHORIZATION TO ADVERTISE FOR BIDS.
C -3078 (38)
Accept staffs report on the status of the project and authorize the Public Works
Department to advertise for bids for the first construction phase, Construction
of Castaways Parks Landscape and Irrigation Improvements.
•
16. CASTAWAYS PASSIVE PARK (CONTRACT NO. 3078) - AMENDMENT
Castaways Psv Prk
TO WALDEN AGREEMENT. Approve Amendment No. 1 to a Consultant
C -3078 (38)
Agreement with Walden and Associates for civil engineering services by
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City of Newport Beach
City Council Minutes
November 12, 1996
Manager
No. 1 on behalf of the City.
to sign
• 17. MEMORANDUM OF UNDERSTANDING - NEWPORT BEACH
MANAGEMENT ASSOCIATION (CONTRACT NO. 2946). Approve
Memorandum of Understanding between the City and the Fire Manal
Association which covers the period from January 1, 1996 through De
31, 1997.
MISCELLANEOUS ACTIONS
16. Removed from the Consent Calendar.
19. PLANNING COMMISSION AGENDA FOR NOVEMBER 7, 1996.
20. COUNTY URBAN PARK FUND GRANT. Ratify action of City Manager in
submitting a grant application for Orange County Urban Parks Program.
21. Removed from the Consent Calendar.
22. GENERAL PLAN AMENDMENT NO. 96-3. Request to initiate various
amendments to the Newport Beach General Plan, as follows:
A. Newport Diagnostic Center - 1605 Avocado Avenue
Request to increase the floor area limit in Block 500 of Newport Center
by 6,600 square feet to allow expansion of an existing medical office
• building.
B. Koll Real Estate Group - Koll Center Newport Office Site B (vicinity
of MacArthur Boulevard and Jamboree Road).
Request to increase the floor area limit in Koll Center Newport Office
Site B by 120,000 square feet.
C. The Ayres Group - Lower Castaways Site (owned by The Irvine
Company, corner of West Coast Highway and Dover Drive).
Request to amend the Land Use Element area description to allow
hotel development on the Lower Castaways site.
D. Magdi R. Hanna - 3900 -3956 East Coast Highway.
Request to redesignate a portion of a vacated alley from the Single
Family Detached to the Retail and Service Commercial land use
designation in conjunction with the abandonment of the adjoining
alley. The redesignation will increase the commercial site area
approximately 1,212 square feet, and increase the floor area allocation
by approximately 606 square feet. .
E. Dahn Corporation - 1133 Camelback Street (owned by United States
Postal Service - vacant site adjacent to existing Post Office).
Request to redesignate approximately two acres of vacant land from
the Governmental, Educational and Institutional Facilities to the
General Industry land use designation to allow for the development of
• a mini storage facility. Also requested is the establishment of a floor
area limit of 99,900 square feet for the proposed development.
F. Rockwell Semiconductor Systems - 4311 Jamboree Road.
Request to increase the floor area limit for Koll Center Newport
Industrial Site 1 (Rockwell) by 650,000 square feet, to allow for
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INDEX
MOU /NB Fire Mgm
Asn C- 2946(38)
Planning (68)
County Urban Prk
Fnd Grant (54)
GPA 96 -3 (45)
City of Newport Beach
City Council Minutes
November 12, 1996
expansion of the existing research, development and
facility.
Sustain the action of the Planning Commission to initiate proposed
amendments A, B, E and F; direct staff to proceed with the preparation of any
necessary environmental documents and set for public hearing before the
Planning Commission.
23. MASSAGE TECHNICIAN PERMIT DENIAL. Accept, approve and adopt
the determination of the Hearing Officer as final to deny Massage Technician
Permit for Yoonie Hwang.
Motion by Mayor Pro Tem Debay to approve the Consent Calendar except for
those items removed (1, 5-12,18 and 21). The motion carried by the following
roll call vote:
Ayes:
O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes:
None
Absent:
None
Abstain:
None
ITEMS REMOVED FROM THE CONSENT CALENDAR
1. ORDINANCE NO. 96 -42 AMENDING CHAPTER 12.24.020 THROUGH
12.24.049 OF THE NBMC REGARDING INCREASING STATE SPEED
LIMIT'S.
ORDINANCE NO. 96.43 AMENDING CHAPTER 12.24.050 THROUGH
• 12.24.130 OF THE NBMC REGARDING DECREASING STATE SPEED
LIMITS.
Motion by Council Member O'Neil to remove the establishment of the 30 mph
speed limit for Harbor View Drive from Goldenrod Avenue to Marguerite
Avenue (Section 12.24.080). He would like staff (Traffic Affairs Committee) to
review this further and meet with the community.
Council Member Edwards asked the maker of the motion if he would accept
including removal of Santiago Drive from Irvine to Tustin Avenue to also be
reviewed by the Traffic Affairs Committee, to which the maker of the motion
replied in the affirmative.
Council Member Watt asked that the entire length of Crown Drive be included
in the removal, which was also accepted by the maker of the motion.
Hearing no one in the audience wishing to address this issue, Mayor Hedges
restated that the motion is to introduce Ordinance No. 96 -42 amending Chapter
12.24.020 to 12.24.049 of the Newport Beach Municipal Code regarding
decreasing state speed limits, with the exception of referral of Crown Drive,
Harbor View Drive from Goldenrod to Marguerite and Santiago Drive to the
Traffic Affairs Committee for further consideration, as well as to introduce
Ordinance No. 96 -43 amending Chapter 12.24.050 through 12.24.130 of the
Newport Beach Municipal Code regarding decreasing state speed limits, and to
• bring back the ordinances for second reading and adoption.
Council Member Glover stated that she believes it is very difficult for the public
to understand why the city is raising speeds on the streets, and asked if other
cities are doing this.
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INDEX
Massage Tech Perm
Hwang (27)
Ord 96 -42
Veh /Trfc]Speed
Limits (85)
Ord 96 -43
City of Newport Beach
City Council Minutes
November 12, 1996
participated in a discussion as to what the state law requires. The
requirement to set the speed is based on an engineering survey, and when
• reviewed with the 85th percentile of the cars actually traveling the street, is
established at that given rate, or within certain perameters of that to enable
utilization of enforcement through radar. If radar is utilized without setting
the speed based on the engineering survey the city is, under law, creating
speed traps and in order to stay in compliance with state law, the Police
Department recommends that the City make the adjustment because radar is
the most effective way to enforce speed limits within the city. He stated that
other cities go through the exact same issue and are required to comply with
state law in order to utilize radar for enforcement, and he further advised that
the City could eliminate radar for enforcement of speed, however a police
officer would have to track the traveling vehicle at a given speed before the
officer could cite them for speeding at a given rate.
Council Member Glover said that she feels state law is wrong to require
raising speed limits in order for the police to use radar to enforce a speeding
ticket in court. She asked why this has become an issue now, wherein City
Manager Murphy explained that by law, every five years an engineering study
must be done to make sure that the 85th percentile and the speed limits are
set at the correct speed, and at this point in time, the city is required to do an
engineering survey as an update in conformance with the five -year cycle.
The motion carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes:
None
Absent:
None
Abstain:
•
None
5. RESOLUTION NO. 96 -94 AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $100,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE
CITY OF NEWPORT BEACH VARIABLE RATE DEMAND REVENUE
BONDS (HOAG MEMORIAL HOSPITAL PRESBYTERIAN), 1996
SERIES A, B AND C.
Council Member O'Neil recused himself from discussion and voting on the
subject resolution due to a conflict of interest.
Motion by Council Member Edwards to adopt Resolution No. 96.94; approve
the documents approving the sale of $100 million City of Newport Beach
Variable Rate Demand Revenue Bonds (Hoag Memorial Hospital Presbyterian)
1996 Series A, B and C, approve the Indenture, Loan Agreement, Purchase
Contract, Preliminary Official Statement (including Appendix A); and
authorize City staff to take the necessary steps to close the bond sale.
Dolores Otting, resident of Newport Beach, said that she feels the public
should be made more aware of the history of the Hoag Hospital bond issue.
She referred to the staff report which states that in 1984 the city issued $61.2
million of Health Facilities Revenue Bonds on behalf of Hoag Hospital and at
that time the city was given approximately $250,000. She remarked that it
• would be nice to know exactly what the city did receive. In 1992 Hoag
Hospital asked the City to authorize the issuance of revenue refunding bonds
not to exceed $98.5 million, and Hoag paid back the $61.2 million, which would
leave approximately $30 million and the city got $200,000 of this. She feels
that the city should have received more because in 1984 the city received
$250,000 for less money. Hoag now has approached the city for $100 million
and the city will be receiving approximately $200,000 which, in her estimation,
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INDEX
Hoag Hospital
Series 1996 A,B,C
Revenue Bonds
Res 96 -94 (40)
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City of Newport Beach
City Council Minutes
November 12, 1996
is "cheap." She believes that the city should get more than just $200,000 for
$100 million in tax exempt bonds to a nonprofit corporation. She cited from
the staff report that "this is a cost - savings issue to be passed along to Newport
Beach residents in the form of health care costs." She believes that is an
illegal statement with no foundation as this can't be done because of Medicare
and this should not be in the city staff report. She asked about the risk
involved if Hoag Hospital sells itself. She stated that what people don't
understand is that as far as the quality of life is concerned if you have an
accident in the City of Newport Beach, everyone is led to believe that you go to
Hoag Hospital, and this is not true as it is not a trauma center. She believes
that there is a health and quality of life issue here, and that there should be
some prerequisites before participating in a future bond issue.
Mayor Hedges responded that there have been a lot of valid questions raised,
and said that similar discussions took place in the City Council Finance
Committee meetings, wherein he deferred Mrs. Otting's inquiries to City
Manager Murphy.
City Manager Murphy said that basically the assets of Hoag are pledged, as
well as a supplemental letter of credit presented to the City Finance'
Committee with specific language in the indenture that would never obligate
the city to repay this bond issue, and the city is merely a financing conduit for
Hoag Hospital to obtain tax exempt financing status. This authority is
contained within federal and state law which allows the city to act as a conduit
regarding financing. Regarding the $200,000 fee, the Finance Committee
discussed this at length and sought to seek a higher fee amount. Hoag
Hospital has another option for financing this issue, and that option is the
State of California with a fee of $75,000 to perform this same function. Hoag is
willing to work and finance this through the city, and they have indicated the
maximum they would pay the city is $200,000, and it would be the Council's
choice as to how this money would be used.
Mayor Hedges stated that the $200,000 is somewhat of a gift transfer but
someone is going to pay for that in the form of higher costs to patients. With
respect to comments about the opinion in the staff report, he has already
conveyed that this does not belong in a staff report. Beyond this, he feels that
there is no city risk.
In response to Council concern, City Manager Murphy said that under terms
of the indenture the city would be protected by whomever would become the
potential operator or new entity if a merger took place.
The motion carried by the following roll call vote:
Ayes:
Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes:
None
Abstain:
O'Neil
Absent:
None
6. AWARD OF CONTRACT FOR CONSTRUCTION OF WELLHEAD
FACILITIES AT THE DOLPHIN AVENUE WELL SITES AND
PROFESSIONAL SERVICES AGREEMENT FOR CONSTRUCTION
MANAGEMENT SERVICES (CONTRACT NO. 3004 -AA) AS PART OF
THE GROUNDWATER DEVELOPMENT PROJECT. Approve the plans
and specifications; approve the list of prequalified contractors; find that Pascal
& Ludwig of Ontario submitted the "lowest responsible bid," and they can meet
the requirements for completing the proposed contract work and declare them
the "low bidder;" award Contract No. 3004 -X to Pascal & Ludwig Engineers of
Ontario, in the amount of $1,625,400 and authorize the Mayor and City Clerk
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INDEX
Groundwater Dev/
Wellhead Fac
C- 3004 —AA
(38)
City of Newport Beach
City Council Minutes
November 12, 1996
to execute the contract on behalf of the City and authorize a 10% contingency
for change orders, materials, testing and added work; and authorize the Mayor
and City Clerk to execute a Professional Services Agreement on behalf of the
• City with Daniel Boyle Engineering, Inc., (Contract No. 3004 -AA) to provide
construction management services related to the construction of the wellhead
facilities for a fee of $164,200.
7. AWARD OF CONTRACT FOR CONSTRUCTION OF 36 -INCH WATER
TRANSMISSION MAIN REACH NO. 4 - ]PHASE II, GROUNDWATER
DEVELOPMENT PROJECT (CONTRACT NO. 3004 -N). Approve the
plans and specifications; find that the Murray Company of Rancho Dominguez
submitted the "lowest responsible bid," and they can meet the requirements for
completing the proposed contract work and declare them the "low bidder;"
award Contract No. 3004 -N to the Murray Company of Rancho Dominguez in
the amount of $1,580,317.00, authorize the Mayor and the City Clerk to
execute the contract on behalf of the City, and authorize a 10% contingency for
change orders, materials, testing and added work.
8. AWARD OF CONTRACT - 24 -INCH WATER TRANSMISSION MAIN -
REACH NO. 3A & 3B, AS PART OF THE GROUNDWATER
DEVELOPMENT PROJECT (CONTRACT NO. 3004 -W). Approve the
plans and specifications; find that Callon Construction, Inc. of Rialto
submitted the "lowest responsible bid" and they can meet the requirements for
completing the proposed contract work and declare them the "low bidder;"
award Contract No. C- 3004 -W to Calfon Construction, Inc. of Rialto in the
amount if $819,349, and authorize the Mayor and the City Clerk to execute the
contract on behalf of the City; and authorize a 10.1 contingency for change
• orders, materials, testing and added work.
9. AWARD OF CONTRACT - WEST NEWPORT SEWER MAIN
REPLACEMENT PROJECT (CONTRACT NO. 3111). Approve the plans
and specifications; find that Seven C's Construction of Dana Point submitted
the "lowest responsible bid" and they can meet the requirements for
completing the proposed contract work and declare them the "low bidder;"
award Contract No. 3111 to Seven C's Construction of Dana Point in the
amount of $412,116.00 for Schedule B, authorize the Mayor and the City Clerk
to execute the contract on behalf of the City; and authorize a 10% contingency
to cover a change order, materials testing and added work.
10. PROFESSIONAL SERVICES AGREEMENT FOR CONSTRUCTION
MANAGEMENT SERVICES FOR PIPELINE REACH NOS. 3A & 3B
AND REACH 4 - PHASE II AS PART OF THE GROUNDWATER
DEVELOPMENT PROJECT (CONTRACT NO. 3004 -BB). Authorize the
Mayor and City Clerk to execute a Professional Services Agreement on behalf
of the City with ASL Consulting Engineers, to provide construction
management services related to Reach Nos. 3A & 3B and Reach 4 - Phase II
pipeline construction projects that are part of the Groundwater Development
Project for a total fee of $208,300.
11. PROFESSIONAL SERVICES AGREEMENT FOR PROJECT
ADMINISTRATION, PLANNING AND ENGINEERING SERVICES AS
PART OF THE GROUNDWATER DEVELOPMENT AND CAPITAL
• IMPROVEMENT PROJECTS (CONTRACT NO. 3004 -CC). Authorize the
Mayor and City Clerk to execute a Professional Services Agreement on behalf
of the City with the firm DMc Engineering (DMc) for a fee of $88,040.
Mayor Hedges said he removed the foregoing Ground Water
Development/sewer related contracts (Agenda Items 6.11) as he was concerned
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W1 o►`
Groundwater Dev/
Reach 4 PH II
C- 3004 -N (38)
Groundwater Dev
Reach 3A &B
C- 3004 -W (38)
West Npt Svr Main
Replacement
C -3111 (38)
Groundwater Dev
Reach 3A &B & 4
PH II /Prf Sry Agm
ASL C- 3004 -BB (38)
Groundwater Dev
& Capital Imp Prj
DMc C- 3004 -CC (38)
City of Newport Beach
City Council Minutes
November 12, 1996
INDEX
about the requested authorization of 10% contingency fees, and cited as an
example Item 9, which is West Newport Sewer Main Replacement.
• Public Works/Utilities Director Webb explained that the contingency that staff
is recommending is not an award to the contractor. This is to set aside from
their budget an extra 10% that will provide for changes that they are not
aware of at this time that may come up during construction. In these
particular projects most all of them are underground projects and probably the
best that staff can do to minimize change orders is to have complete, good sets
of plans however, historically with underground projects unknown conditions
are discovered. The contingency fee is so that it is not necessary to come back
to Council to allow working with the contractor to keep the project going
should unknown conditions occur. The contracts all require materials testing
and plant supervision which are not part of the contract that is awarded to a
particular contractor. An outside materials testing consultant is hired by the
city to provide this for each one of the projects, so that part of the 10•%o
contingency pays for that service. The change orders are scrutinized as
stringently as can be by the city's project managers to make sure that
contractors are not taking advantage of the city and their record speaks for
itself, but there are circumstances that are beyond control and those are the
ones that exceed the 4 1/6-6% contingency fees. Further, if the contingency fee
is not needed the money is reverted to the respective fund at the end of the
project.
Mayor Hedges emphasized that the contingency fees amount to approximately
a half million dollars, and at issue here is a situation of financial oversight, as
the Council does not know what the city is getting for that money which is not
allocated for any specific use.
• In response to Council Member Edwards, Mr. Webb stated that if the
contingency fees are not authorized this could delay the performance of the
projects. Usually, the change orders quite often need to be negotiated within a
two or three day period in order to keep the contractor working, and if there
were delays to go back to Council for authorization, the contractor could pull
off and charge extra money to continue.
City Manager Murphy explained that the City Council has approved a set of
purchasing policies, and within those policies the City Manager and the Public
Works Director are authorized to permit change orders for additions to
contracts: Public Works Director up to 10 %, City Manager 10 %•25 %, and
above 25% authorization by the City Council. All of these change order
authorizations at a staff level are contingent upon having the available funds
within the budgeted line item. This policy has been followed and on several
occasions change orders have come back to Council in excess of the 25%
threshhold. In cases of between 10 % -25% a memo is written explaining the
circumstances identified where funds are available and they are not over the
budgeted amount that is allocated for that project. If its above the amount for
that project, money is deleted from other projects to stay within the total
allocated budget in a particular area, i.e., water, sewer, or the General Fund
Capital Projects.
Mayor Pro Tem Debay added that in discussions with private contractors, she
• has found that they always arrange for a 10% contingency fee on underground
projects, and that this situation does not affect only public agencies.
Peter Tarr, 5023 Lido Sands Drive, commented that he has had some
experience with construction contracts, as for years his job was to bail out
people caught up in construction contracts that had gone wrong. One of the
things that contracts do is to allocate risk between the various parties, and the
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City of Newport Beach
City Council Minutes
November 12, 1996
INDEX
owner of the ground is responsible for things that are found underground. The
10% contingency for underground construction is, in his opinion, rather light
in comparison of what he has seen in both public and private contracts. To his
• knowledge holding extras to an average of 4 % -5% in the City is outstanding
and abnost unheard of and the City staff is doing a very good job for the City of
Newport Beach. He added that to micromanage this particular part of City
business is to encourage delays, and litigation, and the only people who make
money in this situation are the lawyers.
Tom Hyans, resident of the City, said that in August 1996 a summary was put
together by the Public Works Department that showed the estimated cost of
the project bonding at approximately $16 million and an overrum at that time
of $7 million. He heard at one of the recent candidates forum that it really
wasn't an overrun but to paraphrase, "a predictable excess." He questioned if
the particular funds being discussed tonight are contributing to the overrun on
the "predictable excess." Also, when he was researching the "predictable
excess" he went back to the bond document that was offered in August 1994
which refers to the cost of the project to be about $17.4 million. The project
was described in Reaches 1, 2, and 3 as requiring 36" pipe. In the August 1996
document there is approximately $1.3 million attributed for the need to change
from 30" pipe to 36" pipe, and he doesn't understand this. The error in
judgment between 36" and 30" pipe is actually about a 45% change, and there
seems to be some sort of discrepancy between what was planned, funded, and
what now is considered an overrun.
City Manager Murphy advised that the staff report identifies the components
of the groundwater project, how it compares with the numbers that were
presented in August, and how this compares with the estimates that were
• previously presented. The long presentation in August went back to the
original estimates of the project which were based on preliminary engineering
estimates to try to accelerate the project, as for each year of delay it costs an
additional $5 million loss in savings. Basically the project was built in
components over time with completed engineering drawings to try and
expedite getting to completion sooner to expedite those savings.
Mr. Webb explained that the 30" pipe was what was originally proposed for the
bond measures and it was done without the benefit of the hydraulic analysis.
That was done later on and this revealed that 36" pipe was needed. He agreed
that there is a big difference in price between the 30" and 36" pipe and to a
large extent, this was the reason for needing the larger amounts of money for
Reaches 1, 2 and 3, 3A and 3B projects.
Tom Hyans referred to the bond document on page 29 where the project is
described for Reach 2 - transmission pipe, which states that this new pipe
shall also be 36" diameter. He said that in the document dated 1994, the
project was based on 36" pipe and whatever cost 36" pipe had at that time was
no design change. In August 1996, two years later, the current document cites
about $1.3 million of overrun as the difference between these figures being
attributable to the increase in pipe size from 30" to 36" and this is what he
doesn't understand. He asked how can we have a price for a project two years
ago based on 36" pipe at $10 and now 36" pipe at $16, which resulted in an
overrun.
• Mr. Webb answered that one of the confusions here is that the estimates were
not based on prices bid by a contractor to put the pipe in the ground, but were
based on that figure ($10), and when the project was bid it came in at a higher
price ($16).
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City Council Minutes
November 12, 1996
City Manager Murphy stated that when the report was brought back to the
City Council in August, the conclusion was that this project still made
economic sense. He added that long term for the City at the end of the period
• of time when the bonds are paid off, the City is still dollars ahead. The bottom
line is that the project is nearing completion and these contracts need to be
awarded. He added that staff will work within the existing guidelines if the
Council wishes to delete the 10% contingency fees.
Motion was made by Council Member Edwards to approve the staff
recommendations for Agenda Item Numbers 6 - 11, stating that he
understands the frustrations, but he feels that it is important to move ahead;
and with respect to Mayor Hedges' concerns regarding the contingency fees, he
would add to his motion that a monthly updated verbal report with regard to
the change orders be given to the Council by the Public Works/Utilities
Committee. The motion carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes:
None
Abstain:
None
Absent:
None
12. PROFESSIONAL SERVICES AGREEMENT FOR PREPARATION OF
WATER MASTER PLAN AND WATER/SEWER FINANCIAL PLA
WITH BOYLE ENGINEERING CORPORATION.
In response to Council Member Glover, City Manager Murphy explained that
what she looked at was a large plan in terms of the conceptual plan. Basically,
this professional services agreement is taking the project to the next step in a
• detailed fashion to make sure that the correct pipe and the pipe segments
being replaced are in the correct order for the long term looking forward into
the next century and beyond.
Mr. Webb reported that in taking over the water system they went through
quite a process of trying to look at the various different projects that had been
on the books for several years and his question was answered as to why
certain things had to be done right now. He believes this review is going to
give them a better feel for project priorities and they are going to expand on
the model for the water system. Based on a preliminary model that was put
together about three years ago, it is known that there are some deficiencies on
several of the transmission links and this needs to be defined a little bit better
to put together the replacement pieces to bring the system up for the next 20 -
25 years. He said that additionally the Mayor requested that they also look at
different rate structures from what the City is operating under now, and part
of the review is the possibility of a tiered water rate that, rather than going in
with a drought management program that has a policing problem, to police the
use of water through a rate structure. With the sewer master plan they didn't
do a financial analysis and this will also pull together the long term financing
for the sewer rates.
In response to Council inquiry, Mr. Webb advised that the cost involved
includes the model analysis, a significant amount of flow testing throughout
the entire system to validate the model, reviewing engineering documents that
• show the age and condition of the water system, and the availability of a
tremendous number of man hours to do this, and this is not possible with the
existing staff.
City Manager Murphy explained that the City will be looking more carefully
at a much more detailed street capital plan so that the money will be spent in
the most wisest way possible as the needs arise. His hope is that with this
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Water /Sewer Fin
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November 12, 1996
INDEX
document and the sewer plan the costs can be updated each year and plugged
into the budget. He added that from a water standpoint regarding the use of
water, if the sewer system and the disposal of water still fits within the
. assumptions of the plan, they will still continue to use that document.
Motion was made by Council Member Glov r to authorize the Mayor and the
City Clerk to execute a Professional Services Agreement with Boyle
Engineering Corporation to prepare a Water Master Plan & Water /Sewer
Financial Plan for a fee of $177,834.
Mayor Hedges said that one of the reasons that it costs so much money is the
hourly rates of some of the people involved, i.e., the lowest is for a word
processor at $52 per hour, computing to $108,000 a year; and the rate goes up
from there to principal engineer at $135 per hour. This is what bothers him,
as the City does not pay this kind of money for similar work, and he is
disturbed by this.
Mayor Pro Tern Debay remarked that she feels it is counter - productive,
destructive and negative to micromanage the City, as the staff is doing what
the Council has asked them to do (privatizing), and then staff is criticized for
that. She questioned if the small number of people who scrutinize the city
operations actually have the welfare of the city at heart or if they are just
people who don't have enough to do.
Council Member Watt explained that with respect to the $52 per hour for word
processing this is but one component of administering the contract, and this is
not a salary but an amount that it takes to accomplish the work. This is why
she does not find this figure totally wrong.
Mayor Hedges opened the discussion for public comments, but he stated that
he wanted the costs broken out for the 55 consultants working in the city on
various projects, employing a total of nearly 300 people.
Dolores Otting said that maybe the League of Cities could do something for the
taxpayers of Orange County and that the citizens insist that professional
services agreements go out to competitive bid as this is what is missing here.
This is not privatization the way that she or another business person in the
City of Newport Beach would buy something, as the best product would be
bought for the best price. This is not what happens in the city, as these
professional services get negotiated in many instances, that is why were
spending $52 to get someone as a word processor. She said that she has never
complained about her water, but somedays the clothes smell as though the
sewer is. in the washing machine. Also, when she fills up her bath tub the
water is blue, but the explanation is that she lives close to the Canyon and she
is getting more chlorine. She would like to see some water quality in the city,
and she would hope that with the new Council and a little bit more
micromanaging that "someone is watching the store." She added that the
percentage of contracts that Boyle Engineering has in the County of Orange is
"absolutely insidious," and a continuing process of employing friends. She
would like to see a new policy established where some of the professional
services go out to bid, as there are other companies besides Boyle Engineering.
She said that she appreciates the efforts of all of the Council, and commended
both Council Members Watt and Cox for their outstanding service to the city.
Council Member Edwards stated that the city does go out and look, and find
people who do very particularized things, and one of the reasons the city uses
consultants is so that we don't end up paying people on top of their salary than
we pay benefits and perks, and so it is arguably a savings to the city.
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Dolores Otting, in response to the foregoing, stated that public concern is in
vain if the city intends to approve these professional services contracts. She
explained that there was a council candidate at the forum that was talking
• about how the City of Newport Beach pays more for water than the City of
Irvine. She called up Newport Beach and asked if this was true, and she was
told that the water bill was subsidized on the property tax bill of the City of
Irvine whicli is $10 per resident per year. She thought this was going to be
some outrageous fee that would level the city's water off, but it wasp t, and she
feels that she wasn't told the true facts and in fact was mislead by the council
candidate's remarks.
Mayor Pro Tem Debay advised that the City of Irvine gets their water from the
Orange County Water Basin, wherein the City of Newport Beach buys water
from the Metropolitan Water District, and that accounts for some of the
difference. Also, in the selection process evidenced in the staff report, this
professional services contract goes through a process and was not just given to
Boyle Engineering, as there were at least five companies who submitted
written proposals.
Eldon Davidson, Utility Manager, clarified that they went out to five
consulting firms who were prequalified with respect to master planning, and
financial planning in Orange County, and the range was from $140,000 to
$270,000.
Mayor Hedges questioned whether the City Council authorized the hiring of a
City Engineer. City Manager Murphy said yes, this position was created in
the budget document. Mayor Hedges said that he must have overlooked this,
as he felt that with Mr. Nolan's retirement and the elevation of Mr. Webb the
is positions were combined. City Manager Murphy advised that they did
combine the positions and kept the salary the same but in recruiting someone
to fill that position with the qualifications that the city was looking for, the
title was also desired and was passed along, but at no extra cost.
Mayor Hedges restated the motion which is to award the professional services
agreement for preparation of a Water Master Plan and Water Sewer Financial
Plan to Boyle Engineering Corporation, and said that he was going to oppose
the motion for two reasons. 1. There is no rush to do this at this point, and the
Council can do what was suggested by one of the members of the public, that
we put it out for regular bid. He was told that the city doesn't do this with
professional services agreements and that they use a staff committee and no
people or council are involved in this selection process, but he feels that
perhaps there should be as the City spends millions of dollars on the
Geographic Information System (GIS) program over the years so that the city
staff could do this kind of work whether its fie hydrant planning, sewer
planning, water planning through this GIS Program, which in the context of
this agreement, is deemed to be inadequate for the city's purpose. This makes
him wonder why the city has their own GIS and what exactly is it used for
except a few minor things, but really one of the reasons for doing it was to save
money in the long run, or at least make the work a little more efficient, and
he has not seen any payback on any measurable basis by awarding this
$178,000 contract. 2. Privatization to 55 consultants and nearly 300
employees is a lot of privatization and that's where the management and
- administration comes in on this. Its one thing that we want privatization, but
this type of professional services agreement, as was stated, does not fall into
that category.
The motion carried by the following roll call vote:
Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt
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•
•
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City Council Minutes
November 12, 1996
Noes: Mayor
Absent: None
Abstained: None
1s. NEWPORT CENTER DRIVE PARKING PROPOSAL.
Mayor Hedges stated that he removed this item from the agenda which is a
proposal to take out one of the lanes in Newport Center and creating parking
on it, and in this case, to implement parallel parking along the outer edge on a
trial basis for six months.
City Manager Murphy said that this has been a proposal from The Irvine
Company (TIC) to do exactly as Mayor Hedges described in the foregoing.
Actually the original proposal was to take the current six lane roadway, three
in one direction and three in the other, and provide parking both on the inner
and outer ring of Newport Center Drive. There were concerns raised by the
city staff related to that in terms of site lines and impact from pedestrians that
may be crossing the streets and what result that would have on the movement
of pedestrians as well as vehicles. TIC retained an independent consultant at
their expense to review these concerns identified in terms of the potential
traffic liability issues. Based on TIC's research and the city's review of that
research, the Public Works Department looked at it more carefully, and as
evidenced on the refined plan which they came back with and the one
recommended in the staff report, it was determined that we implement the
program only on the outer ring on a trial basis to discover what the actual
impact is in the field. A number of issues will be looked at such as the number
of traffic accidents, pedestrian - vehicle - related accidents, bicycle accidents,
speed of vehicles, perception of parking, and taking a look at the businesses
and their desires and comments. City Manager Murphy stated that as far as
the city being indemnified by TIC, the answer is probably no, as it is a public
roadway.
Carol Hoffman, Vice President, The Irvine Company, said that they have
discussed the indemnification at length with the Public Works Committee and
with Mr. Webb, and she feels that the issue of indemnification really was laid
to rest for now from the standpoint that TIC was going to undertake the trial
basis. They felt that the width of the lane for parking was much greater than
it is anywhere else that parking exists on- street allowing quits a generous
area, and the idea was that a car could park adjacent to the curb and there
was considerable room before the next or first lane started for cars to open
their doors into this lane area, creating this improved safety condition. For
this reason she doesn't believe that it is fair to ask TIC to indemnify the city
regarding a public street situation. In response to Council inquiry, Ms.
Hoffman answered that she couldn't say that there might be some additional
opportunity for that, but TIC feels that it is a much safer condition than exists
in other areas throughout the city, as the lane is considerably wider, and yes,
the parking is an opportunity to provide for greater convenient parking to the
first floor tenants and the retail tenants along the outer ring of Newport
Center. She advised that TIC would be working with the staff as to the exact
timing when this proposal would go into effect, as well as the final design, as
TIC has submitted a conceptual design, but there is a need to finalize the line
of site from each of the corner intersections to maximize the safety of this
particular design, and she doubts that they will be able to get all of this done
before the Christmas Season.
Mr. Webb, in answer to Council inquiry, said they would anticipate that at the
end of the six -month period, a report would be made to the Public Works
Committee and thereafter take a lead from the Committee in the way of
Council action.
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Pkg /Veh & Trfc
(68 & 85)
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November 12, 1996
IRIS)
�►:1
In response to Council inquiry, City Manager Murphy advised that the largest
cost is going to be the enforcement as indicated in the staff report. Parking
• meters would be the most efficient way to monitor the time the vehicles
remain parked. As it is now, this is going to require staff to mark the tires and
revisit the area within the posted period of time, and it is hoped that the city's
costs would be offset by the citations. This is a pilot program, and the key
issue for the city staff is the potential for liability. The city had the study
specifically completed because of the concerns, and the study reduced
significantly the potential areas and number of stalls to maximize safety.
Before going to the expense of the permanent plan the city should look as to
how they are achieving those goals and decide either to do meters or continue
marking tires. He said that the Public Works and Police Departments believe
the meters, if implemented long -term, are the best way to enforce the
regulation.
Mayor Hedges said that when you have a regulation benefiting a single
landowner like TIC, that they may be willing to bear the cost of the
installation of the meters, but his issue is the liability.
Council Member O'Neil stated that he understands the concern of the Council
Members who have spoken to the issue of liability, the responses of TIC, and
the appearance of what the city is doing is enhancing business opportunities
for TIC's benefit, but he thinks it is important to point out that if the city is
able to enhance the usage of the buildings adjacent to the outer edge of
Newport Center, one of the goals hopefully will be that we will have more
people using those facilities and shoppers in the restaurants, thereby
enhancing revenue for the city.
• Council Member Glover commented on the concept of a vehicle for two -hour
parking all over the city and the need to look at this for long -term budgeting
as there are many areas in the city where people would like to have this
available. Another option is to put more parking places on Mariners Mile and
we could say the city is doing it for that business. She asked if this is any
different than increasing parking in Corona del Mar, or Mariners Mile, aren't
we just increasing parking here in the city? City Manager Murphy advised
that the approach to Newport Center is very wide with six lanes and is
perceived as different from a straight road.
Ms. Hoffman said that there are a number of issues here that work to TIC's
and the city's benefit: 1) The street is significantly underutilized (50% below
the capacity of the reduced lanes) even with the narrowing and the use of
parking on the streets. Add to this the fact that the speed of the cars here is
much less than it is in the more congested areas such as Corona del Mar along
Pacific Coast Highway; and 2) the additional width that is available to people
getting out of their cars is a plus so that they are not opening their doors into a
lane of traffic, all combined creates a much more satisfactory situation. This is
why TIC was very hopeful that they could conduct this test for the six to nine
months and allow both the city staff and TIC to come back to Council with
what TIC hopes will be a very successful story.
Motion by Council Member Glover to direct staff to work with The Irvine
is Company to implement parallel parking along the outer edge of the street on a
trial basis for a period of six (6) months.
In answer to Council Member Edwards's inquiry, Ms. Hoffman said that she
felt it would be very unlikely that TIC would not decide to go ahead with the
proposal, as they have been working on it for some time and have had positive
feedback from the tenants regarding the convenience of the proposed parking.
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Steve Stafford, 3250 Broad Street, said he disagrees with implementing
parking on Newport Center Drive for several reasons. He feels the street was
• designed not to have parking, and to be used as a major thoroughfare for not
only vehicles, but trucks and deliveries into the shopping center. He cited
areas where parking is closed off for restaurant use within a shopping area
and none of the parking was being utilized, and he doesn't understand how
parking around Newport Center Drive is going to solve the problem and
stressed the liability issue.
•
Mayor Hedges moved to amend the motion to include the requirement that
TIC indemnify the city for any accidents occurring as a result of the additional
parking during the trial period, which motion died for lack of a second. He
referred to TIC's letter which is included in the staff report that states, in part,
"....the purpose of this is to increase the viability for retail uses on the ground
floor.... there clearly will be a slight increase in the potential for accidents." He
said that it takes only one accident to wipe out any incremental marginal gain
from any sales taxes as a result of the addition of this kind of parking and that
is his concern. He added that by granting this the city is knowingly accepting
an increased level of risk and knowingly accepting a slight increase in the
potential for accidents for the benefit of a single landowner with the possibility
of some unquantified increase in sales tax revenue, and therefore, he will
oppose the motion.
Council Member Watt reported that at the Public Works Committee meeting
she voted against this issue and her reasons were threefold: 1) the potential for
increased accidents, and in this case we don't need it; 2) aesthetic issues as
Newport Center was planned to be more of a garden variety center. It is very
nice and it doesn't have to be jam- packed on the outside peripheral area where
the streetscape is; and 3) she sees Newport Center as needing overall
planning, and if parking is an issue, that we should look at how much is
marked off for valet parking and where. She said that some of these questions
were answered at the meeting but not in enough depth for her to feel that the
city shouldn't go back and look at this area and use a more holistic approach,
therefore she is going to vote against the proposal.
The motion carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Cox, Glover
Noes:
Mayor Hedges, Watt
Abstained:
None
Absent:
None
21. PARK DONATION SITE - 3531 NEWPORT BOULEVARD.
Council Member Glover asked if the city has determined if this park site is
worth $300,000, and in response, City Manager Murphy advised that while the
city did not do a full-blown appraisal, the value has been determined to be in
the range of $300,000. However, there are some issues here which are
highlighted in the staff report, and one of these issues is what used to be there
in terms of the hazardous materials which exist under the ground and need to
be remediated. He explained $100,000 would be set aside in an escrow until
there is a sign off from the appropriate authorities that the site is safe from
any materials left from the gasoline station that was once there. This money
would be utilized for any remediation that might be needed to deal with those
issues, and if not needed, the money would go to the property.
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Peggy Ducey, Assistant to the City Manager, reported that in her discussions
today with Jim Thompson, the person coordinating the park donation, it was
suggested that once escrow is open an escrow account be established so that
• the private donations can actually be deposited into that escrow account, and
then the city would be matching funds up to $150,000, but in fact, this might
not be that much as the city recently received a donation of $25,000 from the
Hoag Foundation. The last action the City Council took was that the site
actually has closure by the health care agency on the contamination issue.
One of the things that staff is asking for this evening is that the city not
require that closure, but instead require that staff pursue a more
comprehensive indemnification agreement with Chevron so that the City
would be covered for any type of mitigation or future liability costs. Another
thing that staff is asking for is authorization to open escrow with the sellers,
rather than with Mr. Thompson, as the city will be matching those funds. The
third thing staff is asking for is authorization of $150,000 of matching Park In-
Lieu Funds until December 4, 1996, but that the date be extended to March 1,
1997.
Motion by Council Member Glover to authorize the negotiation of an
indemnification agreement with Chevron that relieves the City of all future
mitigation and liability costs associated with the toxic contamination of the
property; execute an escrow agreement with the sellers that stipulates
$100,000 of the total $300,000 purchase price be placed into an escrow account
to cover costs associated with development of the contaminated site; and the
authorization of $150,000 of Park In -Lieu Reserves be extended to March 1,
1997. The motion carried by the following roll call vote:
Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
• Noes: None
Abstain: None
Absent: None
PUBLIC HEARINGS
24. DEVELOPMENT AGREEMENT NO. 6 (THE IRVINE COMPANY,
CIRCULATION IMPROVEMENT AND OPEN SPACE AGREEMENT)
STATUS REPORT.
Patty Temple, Planning Director, proceeded with an update, stating that in
the review of Development Agreement No. 6 conducted on October 28, 1996, it
was noted there was not complete compliance with the open space dedication
requirements as set forth in the CIOSA Agreement. She advised that as
indicated in the staff report prepared for tonight's meeting, the dedications
required for the Castaways and Newporter North sites have been reserved on
the approved tract maps and will be dedicated upon completion of
improvements. The Irvine Company (TIC) has committed to provide formal
offers of dedication for Newporter Knolls, Bayview Landing, and Newport
Village by November 19, 1996 and the dedications for San Diego Creek South,
Jamboree and MacArthur and freeway reservation north parcel are not yet
required under the terms of the agreement. Because certain offers of
dedication required pursuant to the CIOSA Agreement have not yet been
received, staff would suggest a slight modification to the agenda action that
• the City Council determine substantial compliance with the agreement with
the proviso that the staff return this review to the City Council if the offers of
dedication are not received by November 19, 1996.
In response to Council Member Watt's question, City Attorney Burnham said
that the development agreement simply provides that up to four open space
sites can be used for affordable housing, subject to agreement between the city
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The Irvine Co/
Open Space #6
CIOSA Agm
C-2920..(38)
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November 12, 1996
and TIC, and he doesn't think there would be a requirement for a development
agreement, but it would certainly require Council approval and public review at
a Council meeting.
• Council Member Watt made a motion to form a committee composed of Council
Members from districts 3, 5 and 6 to exercise oversight with respect to TIC
open space dedications in conjunction with the Parks, Beaches and Recreation
Commission Open Space Subcommittee.
Discussion ensued, wherein Council Member Watt stated that this would be an
ad hoc Council Committee, but she would like to see it formalized during the
December Council reorganization process and that it also be held accountable
to invite those homeowners associations who abut the property to have some
input.
City Attorney Burnham advised that there already is an Affordable Housing
Task Team chaired currently by Council Member Watt. He said that before the
city could approve affordable housing on any of these sites, with the possible
exception of Bayview Landing where there is already an affordable housing
component submitted by the PC Text, we would need a zone change, and he is
concerned that there might be review by the Affordable Housing Task Team Ad
Hoc Committee, the Parks, Beaches & Recreations Commission, and then the
Planning Commission before it actually got to the Council. Possibly, staff could
work with Council Members Watt, Glover and O'Neil before the next meeting to
come up with an option that will address all the concerns and serve as a
streamline process and one that has adequate public review and participation.
Council Member Watt withdrew her original motion. and made a motion to
• request that staff work with herself, and Council Members Glover and O'Neil
on a Council Ad Hoc committee to bring back at the next meeting a suggestion
that streamlines the need to look at both the open spaces and the affordable
housing.
Hearing no one wishing to come forward to discuss the issue, the public hearing
was closed.
The motion carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes:
None
Abstain:
None
Absent:
None
Motion was made by Council Member Watt to accept the findings subject to the
dedication agreement being received by November 19. The motion carried
by the following roll call vote:
Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes: none
Abstain: None
Absent: None
• 25. ORDINANCE NO. 96 -45 DELETING CHAPTER 20.03, REPORT OF
RESIDENTIAL BUILDING RECORDS, WHICH WAS RECENTLY
MODIFIED AND RECODIFIED AS CHAPTER 15.15 WITHIN TITLE 15
OF THE NEWPORT BEACH MUNICIPAL CODE.
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Ord 96 -45
Residential Bldg
Records (68)
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City Council Minutes
November 12, 1996
City Manager Murphy advised that this is a clean-up action to delete the old
section since the Council has adopted a new one.
• Hearing no one wishing to address this issue, the public hearing was closed.
Motion was made by Council Member Glover to introduce Ordinance No. 96 -45,
and pass to second reading and adoption on November 25, 1996. The motion
carried by the following roll call vote:
Ayes:
Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes:
None
Abstained:
None
Absent:
O'Neil
• Tom Hyans, resident, said that he believes that Council Member Cox tested the
Brown Act during the last meeting when he claimed to have been insulted by Dr.
Jasper, who suggested there might be something fishy about the city's motivation
behind Measure Q. Reading from a prepared statement, he stated that the public
is not the curmudgeons, the gadflies and special interest groupies as suggested but
they rely on the elected officials to represent their interests, and when they don't do
that because of disagreement, etc., then the residents have a right to come before
the Council and ask questions. In summary, Mr. Hyans reminded the Council of
some of the recent insults the residents have experienced, such as the costly
oversights and supervision; the expensive sexual harassment fiasco with the
Newport Beach Police Department; the $1.8 million city's Utilities Department
embezzlement; followed by the $7.4 million overrun to the $16.3 Ground Water
• Project, and the County Bankruptcy. He added he was further insulted by: the toll
road surprise at the top of Newport Coast Drive; to learn that the city's cash
reserves are in excess of $8 million, down from $18 million, while in fact the
discretionary cash in the Stabilization Fund is only slightly over $5.7 million; that
we have benefited from privatization when the converse is true; that the city will
further immerse itself inextricably in funding equipment and facilities for city -
operated refuse collection, while the evidence is that the private sector is cheaper,
and because, "If Newport Beach doesn't take the money some other public agency
will." Mr. Hyans also questioned the use of the man hours and equipment to input
election material into the Web Site when this information was printed in the
newspapers, and he seriously doubts the need for this.
26. CANNERY VILLAGE AREA (Request of Council Member Watt).
City Manager Murphy said that this problem needs to be addressed in terms of
immediate, mid term and long term, but really involves two issues, 1) law
enforcement and 2) the long term which involves land use planning and land
use regulations.
Police Chief McDonell briefly stated that the Police Department spends a great
deal of their resources on the Peninsula in general, specifically in the Cannery
Village area, and this is reflected in the statistics in the number of arrests
percentage -wise compared to the total effected in the Cannery Village. As they
• only have a small number of resources, as a result these forces are reallocated
from somewhere else in another part of the city and it's a difficult balance. The
Police Department spends a lot of time and effort in Cannery Village, and on a
recent weekend they used two unmarked vehicles and officers wrote a number
of public urination citations, along with issuing citations for other related
offenses and arrests for alcohol violations. In addition, they spent a lot
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Cannery Village
Planning /Police
(68/70)
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City Council Minutes
November 12, 1996
INDEX
of time on fight calls and made a number of arrests and this consumed up to 11
police units at one site to quell that recent disturbance. He agreed that it not
just a law enforcement issue, but also a land use and planning issue, and said
• that the Police Department is doing their best and will continue to deal with
the problems.
Mayor Hedges commented that the city is not in the business of cleaning up
after businesses which are unable to operate responsibly or control their
clientele. He said that he would personally lead the charge to abate the entire
area of alcohol serving establishments if those businesses don't start taking an
interest in what's going on in the area. He said that it's not just Cannery
Village as Newport Pier and Balboa have their problems. He added that it is
irresponsible to use general funds and the types of resources expended to the
recent event that should not have been allowed to progress to that point.
Planning Director Temple advised that as noted by Police Chief McDonell, the
Planning Department already has several projects underway which are
intended to provide the city additional tools to deal with alcohol related
businesses. One of the two larger projects is the Zoning Code update, a major
project, which is a complete review by the Planning Commission that will be
brought to the City Council January 1997. One component of the revisions is
the expansion of the classifications for eating and drinking establishments
including bars and cocktail lounges. The new definitions will allow for
expanded ability to require a new use permit, or a use permit amendment if
the operational characteristics of a business change to the extent that they
would no longer be considered a restaurant, or that during a portion of their
operational hours they would cease to become a restaurant. Ms. Temple stated
that additionally new procedures are proposed to allow for the amortization
• and the abatement of nonconforming uses. These provisions, if adopted, will
provide the city additional tools to use if an older nonconforming use becomes
a problem. The second larger area is the city's alcohol policy planning effort,
which some of the Council may have participated in sponsored by Police Chief
McDonell several months ago. As a result of this program the staffs of the
Planning and Police Department have been developing new regulations for
alcoholic beverage outlets which, if adopted, would add a number of new
requirements for both on and off sale liquor establishments (when liquor is
consumed on premises, such as in a bar or restaurant as well as off sale which
is a retail outlet such as a liquor store or super market). Some of the
provisions being considered by staff at this time, is the establishment of the
requirements for all alcoholic beverage outlets which would be either issued by
the Planning Commission or the Planning Director for a standardized set of
findings and requirements which would be adopted as part of those use
permits and developmental and operational standards. These would include
sign limitations, prohibition on loitering, the ability to establish hours of
operation, incorporation of preventable design features, making requirements
for security and making requirements for training of staff within the
establishments. Preventable design features are minimum design standards
which can be incorporated into the physical design of a structure to actually
prevent crime. It can be as simple as not allowing landscaping to go above a
certain area requiring windows to be visible from the streets, things that can
reduce the opportunity for loitering in the vicinity of alcohol establishments.
Lighting is a big part of what is called crime prevention through design.
• Another is the training requirements for persons serving alcoholic beverages
in restaurants and bars and actually making that a requirement within a
certain period of time when an employee is retained by an establishment. In
summary, if problems continue in the Cannery Village area, the city could also
consider additional requirements for this area through the Specific Plan itself,
and these could be locational restrictions or concentration limits in that area.
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Mamie Van Doren thanked the Council for responding to their cry for help by
having staff gather the information contained in the report which you are now
considering. She said that she would like to encourage the Council to adopt
• the suggestions contained in the report as a start for bringing the current
untenable situation in Cannery Village under control. The added Police
presence in the Village since the Council directed the staff study has had an
effect, but only a small one, as there have been recent incidents to disturb the
health and welfare of the residents. She emphasized that with the holiday
drinking season approaching she would like to encourage the Council to adopt
the following suggestions in addition to the items contained in the staff report:
1) direct the Police Department to conduct sobriety checkpoints on Newport
Boulevard throughout the holidays; 2) place signage in prominent places in
Cannery Village outside the drinking establishments and at the entrances of
alleys and parking lots citing the appropriate codes prohibiting public
drunkenness, public urination and excessive noise and warning that offenders
will be arrested; and 3) go on record that Cannery Village has reached the
saturation point with bars and nightclubs and that no more will be allowed.
She added that long -term items 1 and 2 in the staff report should be moved up
into the immediate category. She referred to the saloon keepers who put
heavy emphasis on cooperation by residents, implying that it is the residents'
responsibility of putting up with them and the nuisances that their businesses
cause. She put the Chamber of Commerce Task Force on notice that the
residents of Cannery Village have cooperated for a long time, putting up with
violence, noise, public drunkenness, public urination and countless number of
indignities, and further, that if the business establishments do not act
responsibly, and the city cannot point them to act responsibly, then the
residents of Cannery Village and the Mothers Against Drunk Driving will
picket them and ensure that they receive the publicity they deserve. She
• added that if nothing else works, perhaps they can be shamed into being
responsible.
Steve Stafford stated that the City of Anaheim has an ordinance that requires
that restaurants pay for police services if they have to respond more than two
times in one evening. He believes that the Cities of Redlands and Fullerton
have a similar ordinance, and feels that the City of Newport Beach should
adopt such an ordinance, and assess the bars and restaurants for police
services.
Judy Dutton, 1142 Pembroke Lane, Secretary- Treasurer, Mothers Against
Drunk Driving for the Orange County Chapter, stated that their organization
has some good programs going on in the Cities of Irvine, Anaheim, and Orange
where designated driver programs are made available with the assistance of
the restaurants and she offered their services to the Task Force.
Laith Ezzet, 28th Street Marina, and a Board Member of the 28th Street
Homeowners Association, stated that they really appreciate the efforts that the
city has made to take on this issue, because as residents, they have reached
the breaking point. He said that they have written to and met with the
owners of the local businesses, who promised reforms but they still suffer with
continuous problems, and the fact is that the owners are not there at 1 a.m., or
2 a.m. Either they don't know or are unable to change what is going on. He
has personally witnessed violations such as pulling false fire alarms, releasing
• their water release valve flooding their garage and vandalized all the parking
signs. By statistics, he stated that there are only five or ten establishments
that will cause 95% of the problem, and he feels that the city should focus on
those establishments. He also offered their associations help to participate in
the Task Force.
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City of Newport Beach
City Council Minutes
November 12, 1996
INDEX
Gary Deperine, 2600 Newport Boulevard and resident of 28th Street Marina,
said that he was one of people who took a camera out and shot the pictures
that some of the Council have seen, and invited everyone to view the original
• five hours of tape that he has, but only by being there could you be aware of
the impact of the nightmare that those residents along the alleyway between
30th and 31st street experience. There is a highway of hell between
Malarkey's and the Cannery and Snug Harbor that is just so intense that it is
revolting. He feels that the law enforcement agencies are doing a good job, but
they are never going to be where they are needed, as the problem occurs with
lightning speed. He emphasized that the Council not allow any more rowdy
bars as they are catering to traffic such as the youth, filling them up with
alcohol and making a lot of money during the hours of 10:30 p.m. and 2 a.m,
In retrospect, he said there are a lot of great commercial establishments and
restaurants here, but he has not seen them break bottles and urinate in his
yard, they serve good food and good beverage, but the lower area down the
Peninsula is the problem where hundreds of youths rove around intimidating
the public and he feels that nobody over the age of 30 is safe on those streets.
He suggested that the city strictly enforce the existing regulations, encourage
some lighting and security, impose strict parking regulations, and limit those
types of businesses to some reasonable hours for alcohol consumption.
Rose Parvin, 412 31st Street, said that the residents deserve a peaceful life
and there must be some rules, regulations and a code of ethical conduct
enforced by the city so families and local businesses can prosper and become
free from feeling victimized. She feels that big business is prioritized over the
health and safety of the residents in Newport Beach by high profile, money
making businesses and the alcohol industry. She said that she knows Mayor
Hedges is trying to do a good job here, but there are some sitting Council
• Members though who should be on the paylist of the big businesses. She
referred to the letter she submitted at a previous Council meeting, wherein
she offered suggestions that there should be no more licenses for alcoholic
businesses in the area and the that the businesses must be held responsible for
their noise level and traffic, not only inside the bars but also in the parking
lots and on the street. Some of the restrictions should include that they close
no later than midnight, stop serving alcohol at 10 p.m., have walls around
their parking lots and supervise those people not in control of their behavior
by escorting them to their cars. She referred to a hearing for another license
to be issued for what she would describe as a very high powered bar. She also
stated that she was disappointed that the Police Department withdrew their
protest for licensing of this upcoming alcohol license in spite of the current
situation, and feels that it is very irresponsible of the Police Department to
ignore what goes on when they are the enforcing body.
Mayor Hedges made a motion to adopt the recommendations contained in the
staff report; to include the suggestions made by Council Member Glover to
move to the immediate steps the items under long term steps, also to include
the comments made by the City Council this evening; and with respect to
Cannery Village Specific Plan as mentioned to include McFadden Square and
the Balboa Specific Area Plan.
He would also like to add that what they are dealing with here is really a piece
of the puzzle with respect to the entire Peninsula. This is a planning issue,
• and a long term issue and something that the city can take care of very quickly
in the short term and if this motion is successful, he would expect that the
steps be implemented in the quickest manner possible and in the strongest
possible terms.
The motion carried by the following roll call vote:
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City of Newport Beach
City Council Minutes
November 12, 1996
1101)
Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes: None
Abstain: None
• Absent: None
27. COMMUTING VEHICLES (Requested by Mayor John Hedges) [contd. Commuting Vehicles
from 9/23/96 & 10/28/96]. Budget /Fleet Mntnc
& Proc Arroyo Assoc
City Manager Murphy requested direction to implement an Administrative C -3041 (38 & 40)
Policy with regard to commuting vehicles.
Mayor Hedges made a motion to direct the City Manager to implement an
Administrative Policy reducing the number of city vehicles utilized for
commuting purposes to on-call emergency personnel and key executive
management staff; and to meet and confer with employee associations and key
and management personnel as necessary to implement the policy. The
motion carried by the following roll call vote:
Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes: None
Abstain: None
Absent: None
CURRENT BUSINESS
28. APPOINTMENT OF A CITY COUNCIL REPRESENTATIVE BY THE Cncl Ad -Hoc
MAYOR TO THE FORD LAND AFFORDABLE HOUSING TASK TEAM. Ford Land Afrdbl
• Housing Task Frc
Mayor Hedges made a motion to appoint Council Member O'Neil to succeed (24)
Council Member Watt as the City Council Representative on the Ford Land
Affordable Housing Task Team. The motion carried by the following roll
call vote:
Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes: None
Abstain: None
Absent: None
29. APPOINTMENT TO THE ORANGE COUNTY VECTOR CONTROL Orange County
DISTRICT BOARD OF TRUSTEES. Vector Control
Jt. Govt Cute
Council Member Glover said that it would be inappropriate to confirm an (54)
appointment to the subject Joint Governmental Committee considering the
upcoming Council reorganization.
Mayor Hedges made a motion to defer the appointment of a City Council
Member to represent the City of Newport Beach on the Orange County Vector
Control District Board of Trustees to December 9. The motion carried by
the following roll call vote:
Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes: None
• Abstain: None
Absent: None
30. UNSCHEDULED VACANCY ON THE PLANNING COMMISSION. Planning
Commission
Mayor Hedges made a motion to declare the vacancy on the Planning (24)
Commission due to the election of Tom Thomson to the City Council; and to
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City of Newport Beach
City Council Minutes
November 12, 1996
appoint Norma Glover, Jan Debay and Tom Edwards to the Ad -Hoc
Appointments Committee and directed the City Clerk to post and publish a
Special Vacancy Notice to Ad -Hoc Appointments Committee requesting that
applications be submitted by 4:00 p.m. on Thursday, December 5, 1996, and
schedule the submission of the nominations to the City Council on January 13,
1997 with the final appointment to be made on January 27, 1997. The
motion carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Cox, Glover, Watt, Mayor Hedges
Noes:
None
Abstain:
None
Absent:
None
MOTION FOR RECONSIDERATION - None
City Manager Murphy called attention to the fact that the Orange County Registrar
will not guarantee final election results until 5 p.m., November 26, and that there
needs to be a date set for the swearing -in ceremony for the new Council Members,
wherein it was decided that this be scheduled for the agenda of the next regular
Council Meeting on November 25, 1996.
ADJOURNMENT - 10:20 p.m.
seeeasaaa�ef,as,re +s *er•
The agenda for the Regular meeting of November 12, 1996 was posted on
November 6, 1996 at 3:16 p.m., on the City Hall Bulletin Board located
outside of the City of Newport Beach Administration Building.
City Clerk
Mayor
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INDEX