Loading...
HomeMy WebLinkAbout07/23/2002 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session July 23, 2002 - 4:00 p.m. ROLL CALL Present: Heffernan, Bromberg, Adams, Mayor Ridgeway Absent: O'Neil, Glover, Proctor (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Item No. 4 (Fee Schedule Adjustments), Mayor Ridgeway noted that the action is for a fee adjustment; however, the recommendation is to conduct cost recovery. City Manager Bludau explained that the action is to adopt the attached fees and conduct a future study. City Attorney Burnham reported that the fees are based on cost recovery and the expenses the City incurs for performing certain services. Revenue Manager Everroad pointed out that KPMG identified expenses based on costs that they measured in fiscal year 1995 -1996. He stated that they took the study and, for the last five years, applied cost of living adjustments based on salaries and changes in the consumer price index (CPI) to stay current with costs. He reported that they are recommending that the City stay in line with the cost recovery analysis that KPMG provided, review the fees in the future, and analyze the costs associated with providing services. Mayor Ridgeway noted that the 1996 report suggests that there was still a subsidy by the City for all fees and not a 100% cost recovery. He believed that it is time for the City to go to a 100% cost recovery instead of indexing the fees by the CPI. Mr. Everroad clarified that the City is not adjusting the cost recovery percentages that were established in 1996 -1997 in Chapter 3.36 of the Municipal Code. He stated that this action directs staff with regard to what percentage of the cost that KPMG identified should be recovered through the fee process. 2. STATUS REPORT ON TOP 10 STAFF PRIORITIES FOR 2001 -2002. City Manager Bludau reported that, during the last fiscal year, staff generated a list of its top 10 priorities and utilized a PowerPoint presentation to review the accomplishments. Priority One: Sign a JWA Settlement Agreement with the County. Mr. Bludau reported that the agreement was signed by the four agencies on June 25, 2002. He indicated that he and the City Attorney worked on this, with Council being the primary player. He stated that this priority was successfully accomplished and that this phase of the JWA Settlement Agreement has been concluded, but now the City is in a new phase. Priority Two: Begin and Complete the Public Outreach Portion of the General Plan Update Process. Volume 55 - Page 284 INDEX TWOStaff Priorities (35) City of Newport Beach Study Session Minutes July 23, 2002 INDEX Mr. Bludau stated that the City did not know what it would take to conduct the public outreach portion of the process and reported that this has taken longer than anticipated. He emphasized that this is a deliberative and participatory process. He reported that there are about three more public input actions to undertake before this process is done. He stated that they are on their way and this is a major undertaking for staff and the consultants. Priority Three: Complete the Annexation of the Newport Coast and Begin Providing City Services to the :Population. Mr. Bludau reported that Assistant City Manager Kiff was in charge of this priority. He stated that all annexation actions were completed by December 2001 and that City services began on January 1, 2002. He indicated that they still need to deal with slope maintenance and associated issues, but 95% of the services are currently being provided. Priority Four: Have the City Council Adopt New Personnel Policies. Mr. Bludau stated that this required that all the bargaining units and the Civil Service Board review the personnel policies and then have Council adopt the policies. He reported that the policies were adopted on December 11, 2001. Priority Five: Attain Full Compliance with the New NPDES Permit Requirements and Complete the Three Water Quality Tests Required by the Regional Quality Control Board. Mr. Bludau stated that the City is in full compliance. He reported that a meeting took place this morning to discuss further actions that will be required of the City, how best to provide those actions, how best to arrange the organization to provide those actions, and what type of cost ramifications would occur. He indicated that two of the three studies contemplated in this priority are under way and will continue in the new fiscal year. Priority Six: Complete the Most Time- Sensitive Capital Improvement Projects (Bonita Canyon Sports Park, Balboa and Harbor Pier Refurbishment Projects, and the Balboa Village Improvement Project — Phase I). Mr. Bludau stated that the Sports Park is almost complete with the exception of some minor corrections and the plant establishment period which will conclude in November 2002. He noted that the original contractor went bankrupt which resulted in a six month delay. He added that additional landscaping was authorized by Council and will be completed in October 2002; however, the City will not take it over because it will not be established until March 2003. Mr. Bludau reported that Phase I of the Balboa Village Project was completed in June 2002 and noted that the contractor is performing minor revisions and corrections. Public Works Director Badum added that they are having trouble with the contractor for the Washington Street restroom and stated that they are sending him a formal letter to inform him that he has to complete the restroom in a certain amount of time or the City will contact their bonding company. He indicated that the restroom will Volume 55 - Page 285 City of Newport Beach Study Session Minutes July 23, 2002 INDEX probably not open this weekend. Mayor Ridgeway stated that it is imperative that the restroom be opened this weekend, even if a separate contractor has to be hired, since it is summertime. Mr. Bludau reported that the Newport Pier was reopened in May 2002 and the Balboa Pier was completed in June 2002. Regarding the Big Canyon Reservoir cover, Mr. Badum reported that the project was not funded in the CIP last year, but the City was working on funding sources at that time. Mr. Bludau indicated that it is a CIP project this year. Priority Seven: Improve the Plan Check and Permit Issuance Process. Mr. Bludau reported that a new plan check process was instituted July 1, 2002, and noted that the goal is to have 90% of all plan checks done within four weeks. He stated that this is probably the most difficult internal priority of the ten priorities. He believed that the City has a good process now and indicated that they are keeping a close watch on the plans that have been submitted. He stated that they will monitor the success rate and update Council over time. Priority Eight: Reduce the City's Electricity Consumption by 10% from January 2001 to June 2002. Mr. Bludau reported that they had problems getting the information they needed to measure success. He stated that they then concentrated on utilizing $120,000 to convert the overhead lighting in most of the offices to energy - efficient electronic ballasts and lighting (completed April 2002) and change out a high energy water pump station at the Big Canyon Reservoir (completed by July 19, 2002). Priority Nine: Develop and Implement a Training Program for First Line and Mid -Level Managers within the Organization. Mr. Bludau stated that this has been completed. He added that this was developed through the Human Resources Department and that supervisor training classes have occurred and two of the classes have graduated. He stated that, by the end of 2002, 120 supervisors will have gone through supervisory training. Priority Ten: Begin the Local Coastal Program (LCP) Certification Process. Mr. Bludau stated that this includes developing a timeframe with the key actions needed to certify the LCP. He reported that the law requires that the City submit a draft application before June 30, 2002. Mr. Bludau reported that he reviewed this year's top 12 priorities with Council during the second budget session. He noted that Priority One is the JWA Settlement Agreement and having communication with the Federal Aviation Authority (FAA); Priority Two is the completion of the General Plan Update community input process; Priority Three is the LCP; Priority Four is traffic signalization; and Priority Five is the Bay Knolls annexation. Volume 55 - Page 286 City of Newport Beach Study Session Minutes July 23, 2002 3. STATUS REPORT ON THE LOCAL COASTAL PLAN (LCP) DISCUSSION OF ASSOCIATED ISSUES. Senior Planner Alford utilized a PowerPoint presentation, reporting that the City is mandated by Senate Bill 516 to submit an LCP for Coastal Commission certification by June 30, 2003, otherwise there is a $1,000 /month late fee if the City fails to do this. He stated that the LCP is divided into the Land Use Plan (LUP) (tide location, intensity of land use, resource protection policies, and policies related to coastal development) and the Implementation Plan (all the ordinances, regulations, and programs that implement the policies of the LCP land use fund). He.indicated that staff held initial discussions with Coastal Commission staff who reviewed the Land Use Plan and sent comments that were reviewed by the Planning Commission and Council. He added that an LCP Certification Committee was appointed in January 2002 to provide direction to staff on the technical studies and LCP outline. He reported that the technical studies started in May 2002 and will hopefully be completed by August 30, 2002. Mr. Alford stated that the City has drafted the first two chapters of the LCP LUP and began work on the Implementation Plan. He reported that they want to complete the entire LUP by the end of the summer, have the draft Implementation Plan ready by fall, have both documents ready for preliminary review by Coastal Commission staff by December 1, 2002, have the revisions back by February 2003, schedule Planning Commission and Council hearings in April and May 2003, and have formal submittal to the Coastal Commission by June 2003. In response to Council Member Heffernan's questions, City Attorney Burnham believed that most cities and counties with territory within the Coastal Zone have certified LCPs. He indicated that Malibu does not have an LCP and that legislation was passed last year to have the Coastal Commission staff retain a consultant to write theirs. He stated that most communities over the past 15 to 20 years have submitted and received approval for their LCP. He indicated that Malibu's circumstance probably represents the worst downside in which the Coastal Commission sponsored legislation that removed jurisdiction from a city and prepared the LCP for that city. He added that different treatment is given depending on whether the LCP is certified or not. City Manager Bludau pointed out that the late fee in SB 516 only affects Newport Beach because it was tied into the annexation. Mr. Alford reported that chapter one of the LUP is the introduction and includes the purpose and organization, Coastal Act summary, and overview and history of Newport Beach. He stated that chapter two deals with land use and development, and addresses land uses, exclusion areas, protecting lower cost visitor - serving /recreational uses, and protecting coastal bluffs. He indicated that chapter three deals with public access and recreation, specifically lateral and vertical access, gated communities, and tideland leases. He reported that chapter four discusses coastal resource protection and deals with the environmentally sensitive habitat areas (ESHA), the harbor, water quality, and dredging. Volume 55 - Page 287 INDEX Local Coastal Plan (68) City of Newport Beach Study Session Minutes July 23, 2002 INDEX Mr. Alford stated that it might be appropriate for the City to consider segregating the Implementation Plan from the Zoning Code in the Municipal Code because, if this were to be amended, the City would not need to go to the Coastal Commission on issues that only affect inland areas. He indicated that the City could also consider creating a separate Coastal Zoning Code. He reported that, regardless if this is integrated into the Zoning Code or a separate Coastal Zoning Code, there will probably be new zoning classifications and overlays that will be applied to properties. He added that the City will also need to look at integrating harbor and beach regulations into the Implementation Plan. Council Member Adams asked if there were any environmental documents associated with this. Mr. Burnham reported that the LCP is the functional equivalent to an environmental document, so a separate Environmental Impact Report (EIR) is not needed. Mayor Ridgeway stated that he just came back from Maui and noted that Black Rock in Kaanapali only had 16 public parking stalls which were a mile away from the public access. He indicated that this made him really appreciate the Coastal Act. Robert Philibosian, Law Firm of Sheppard Mullin Richter & Hampton, stated that he met with Planning staff, the City Attorney, and the City Manager a few weeks ago to talk about what his firm can do to assist the City in framing the LCP application to the Coastal Commission and to help guide the City in ways that would be advantageous to the City's plans but still keep in mind what the Coastal Commission staff and Commissioners want to do. He reported that there are 12 Commissioners (four appointed by the Governor, four appointed by the Speaker of the Assembly, and four appointed by the president and pro -tem). He stated that it would be their job to help guide City staff with regard to Coastal Commission staff, as well as present the LCP to the Commissioners in disclosed ex parts meetings to explain what the City is trying to accomplish. He indicated that, when the City goes before the Commission to make its formal presentation, the Commissioners will have already received a preview. He noted that this will not be an easy process, pointing out that the areas that the Coastal Commission staff focused on in a letter to Mr. Alford are areas that are current hot buttons with the Commissioners. Mr. Philibosian indicated that his firm has worked on commercial, residential, and hotel projects. He stated that he has 12 years of experience working with the Coastal Commission and was the Chief Assistant Attorney General for four years when former Governor Deukmajian was the Attorney General. He reported that his partner, Joe Petrillo, in the San Francisco office helped write the Coastal Act, was the First General Counsel of the Coastal Commission, and was the Executive Officer of the Coastal Conservancy. He reported that they recently represented the developer of the former Treasure Island Hotel, now the Laguna Beach Colony Hotel. He stated that Laguna Beach was very involved because they wanted the hotel and wanted it done their way. He indicated that this is how they presented it to the Coastal Commission and reported that they were successful. He stated that they are currently working with Headlands LLC which is developing the Headlands in Dana Point with the City of Dana Point. He Volume 55 - Page 288 City of Newport Beach Study Session Minutes July 23, 2002 INDEX noted that, although they are not representing Dana Point, they are working closely with them. Mr. Philbosian stated that their objective with the City is not to do the planning, but provide the Planning staff with guidance, assistance, and focus, and provide Council with advice in terms of working with and making the presentation to the Coastal Commission staff and working directly with the Commissioners. He indicated that one of their partners, Maria Pracher, has more planning background and has a lower hourly rate than his and Mr. Petrillo's. He added that another associate, Peter Ziblatt, was a staff attorney for the California Department of Fish and Game. He stated that Ms. Pracher and Mr. Ziblatt would be the ones spending time developing the details with City staff and he and Mr. Petrillo would assist with the strategy, policy, and communication with Coastal Commission staff and Commissioners. In response to Mayor Pro Tern Bromberg's questions, Mr. Philibosian indicated that Mr. Ziblatt has worked directly with the Coastal Commission, but has not represented cities on LCPs. He stated that he has worked on everything that is involved with LCPs and the Coastal Act on behalf of their clients. He reported that Ms. Pracher has worked on coastal projects and environmental issues, but has never appeared before the Coastal Commission since he and Mr. Petrillo do the appearances. He stated that Ms. Pracher charges $340/hour and Mr. Ziblatt charges $250/hour. He added that his rate is $550/hour and Mr. Petrillo's rate is $5001hour. He indicated that this would be the first time their firm will represent a city directly. He stated that it would be impossible to estimate how much time will be needed, but he can work with staff to come up with some numbers to set up a budget. Mayor Pro Tern Bromberg stated that he sits on the LCP Committee with Mayor Ridgeway, Council Member Heffernan, and three Planning Commissioners, and asked if the Treasure Island Hotel project is as involved as the City's full LCP program. Mr. Philibosian stated that the City's LCP is a start - from - scratch LCP. He believed that his firm would be putting in substantially more time into this project than what was put into the Treasure Island Hotel project. Mr. Burnham believed that City staff and his office would be able to do the share of the work, including dealing with Coastal Commission staff, and refine the issues so they could advise the outside consultant or counsel when no common ground can be reached. He stated that he gets the sense that the City can minimize consultant involvement. He noted that he was involved with the Treasure Island Hotel project, walked precincts, and was involved in some of the referendum discussions, and added that he cannot imagine the LCP taking on the life that the Treasure Island Hotel project did. He believed that the City can handle most of the issues with the LCP Committee and staff. Mr. Philibosian agreed, noting that his firm was the staff for the Treasure Island Hotel project. Mr. Burnham added that Ms. Pracher worked extensively on the Newport Coast LCP and has familiarity with some of the issues Newport Beach faces. He reported that staff has also talked with people who worked with her on the LCP and noted that they gave her high marks. Volume 55 - Page 289 City of Newport Beach Study Session Minutes July 23, 2002 ION11 W4 Mr. Philibosian indicated that they would act as legal advisor and lobbyist, and that this combination has worked well for their clients. Council Member Heffernan asked if City staff received rules from him on what the Coastal Commission wants so the City is not writing a draft that does not come close to becoming approved. Mr. Philibosian indicated that he has not be asked to do that at this point. Council Member Adams asked what the status is regarding the procurement of the firm's services. Mr. Bludau stated that he told Mr. Philibosian that, if the decision were his, he would put him under contract and that he would pay him for his services today. He indicated that this would be a sole source procurement. He noted that there is no State or local requirement regarding going out to bid on a Request for Proposal (RFP) for consulting/ advocacy services. He added that it is important to the community that, when the City undertakes the LCP process, it comes out of the process with a certified LCP that works for many years. Mayor Ridgeway stated that it is reasonable to assume that there is going to be a turnover in the Coastal Commission and asked what happens when this occurs. Mr. Philibosian reported that he has managed to get acquainted with every Commissioner that was appointed that he did not know beforehand, regardless of the political party doing the appointing. He assured Council that every Commissioner has people who will respond to his telephone calls and meet with him. Council Member Adams requested to see an outline of the expected costs for the LCP process in order to determine how this potential contract fits into the budget. Mayor Ridgeway suggested bringing this to the LCP Committee first. He added that Mr. Alford is having problems with the environmental consultant on parking issues and noted that there are a lot of people dependent on this report. Mr. Philibosian indicated that he has met with Coastal Commission Executive Director Peter Douglas and has had common ground with him, noting that their final analysis of the Treasure Island Hotel project received a unanimous vote from the Coastal Commission. Mayor Ridgeway noted that the City has no control over the private islands with gated communities. He believed that it is the City's intent to maintain status quo. Mr. Philibosian stated that the Coastal Commission always has a problem with gated communities because of the access issues; however, noting that he cannot give the City his legal opinion because he does not know enough about it, he stated that he suspects that this will not be a difficult issue since the islands are built out. He added that he did not notice the issue of existing gated communities in the Coastal Commission letter to Mr. Alford; however, future gated communities are going to be of concern to the Coastal Commission. Mayor Pro Tem Bromberg believed that there is case law that prevents the Coastal Commission from coming in with a huge hammer and being the final word if the determination is unreasonable. Mr. Philibosian stated that it depends on the issue, but there is a specific case regarding coastal access Volume 55 - Page 290 City of Newport Beach Study Session Minutes July 23, 2002 INDEX as a trade off for a permit. He stated that part of his firm's job is to acquaint the City with all the conditions and how it could work so the City can get what it wants while complying with the Coastal Act. Mayor Pro Tem Bromberg believed that Mr. Philibosian can be an asset to the City; however, he would still like to get clarification on how much work the City and Mr. Philibosian will do. Mr. Bludau indicated that they need to determine what staff can do and when the City would want Mr. Philibosian or his staff to look at the work product before talking to Coastal Commission staff. Mayor Ridgeway asked if Mr. Philibosian would review all of the City's underlying documents that currently exist and the proposed documents that will be created. Mr. Philibosian stated that he would not personally conduct the review because it would not be economical for the City. He indicated that it would be just as advantageous to have someone else who charges a lower hourly rate do this and focus on the problems. He noted that, in discussions with staff, it appears that not much of that would be necessary because the City's staff can focus on the problem areas and bring those to his firm's attention, rather than review every word of every page submitted to the Coastal Commission. Mayor Ridgeway stated that consistency is a concern and that, at some point, one of Mr. Philibosian's staff will have to review all of the underlying documents to ensure there is consistency throughout. He added that he believes that the City is 90% on common ground with the Coastal Commission, and that it is the 10% that the City is going to need to strategize. He pointed out that the City demands a high level LCP. Mayor Ridgeway noted that Mr. Philibosian comes with a very high recommendation and stated that he is not interested in competing for legal services, but the City wants to effectively use his time. Mr. Philibosian stated that they are sensitive to this and noted that they represented the County of Los Angeles and are aware of the responsibilities public officials have to their citizens and the treasury. He assured Council that they will be very careful about how they spend their time if they are used for this project. He added that they will work closely with City staff and Council to ensure they are only spending time that is absolutely necessary. In response to Council questions, Mr. Philibosian confirmed that attorney /client privilege applies if the City retains the firm. He indicated that he has time to do this and, if other projects come along, he will not take those cases. Mr. Bludau stated that staff has sufficient direction and will be coming back to Council with the information requested. Mayor Ridgeway indicated that he will leave it up to Mr. Alford whether this will go to the LCP Committee or a study session. Assistant City Manager Wood believed that the City has enough to take to the LCP Committee even before the City receives the consultant reports because Mr. Alford has been very productive. Council Member Heffernan asked what the role is of Council once the drafts are generated. Mr. Burnham stated that approval of the proposed LCP is scheduled for May 2003. He believed that the LCP Committee could provide Council updates on a regular basis or schedule study sessions to discuss the status and how issues are proposed to be resolved. Council Member Volume 55 - Page 291 City of Newport Beach Study Session Minutes July 23, 2002 INDEX Heffernan asked what the schedule is to get the residents and Council involved prior to May. Mr. Burnham believed that this is something that the Committee should discuss at its next meeting because there may be some issues that generate a lot of public interest. He noted that they are also considering using the LCP as a vehicle to obtain a master dredging permit. Council Member Heffernan emphasized that input is needed so the Committee and Council do not go over things twice and so they can understand what the Coastal Commission will approve. Mayor Ridgeway noted that the City almost has an inconsistency between the environmental and property rights individuals, and is unsure if the City is in a position to negotiate property rights issues. He stated that he hopes the City will be able to balance this without being in conflict with what the City wants and what the Coastal Commission demands. Mr. Bludau stated that staff feels that the purpose of the submittal is to have an LCP that it will go to bat for and be willing to live with. Mayor Ridgeway emphasized that the City wants a certified LCP. PUBLIC COMMENTS —None. ADJOURNMENT — 5:20 p.m. The agenda for the Study Session was posted on July 17, 2002, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. �gmo_) Recording Secretary i Mayor � pp NEty City Clerk U �RNIA Volume 55 - Page 292