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HomeMy WebLinkAbout03/10/2009 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting March 10, 2009 — 7:00 p.m. I. STUDY SESSIQN - 4:00 P.M. Il. CLOSED SESSION A. Conference with Legal Counsel - Existing Litigation (Government Code § 54956.9 (a)): Harvey v. City of Newport Beach, Orange County Superior Court Case No. 07CC5,100 B. Conference with Legal Counsel - Anticipated Litigation - Exposure to Litigation (Government Code § 54956.9(b)): Two matters: 1. Potential litigation regarding Fuji Grill's operating agreement at Corona del Mar Beach due to its notice that it is terminating its operating agreement. 2. Potential exposure to litigation on one matter based upon facts and circumstances that might result in litigation against the City but which are not yet known to a potential plaintiff or plaintiffs and disclosure of the facts or circumstances would jeopardize the City's ability to resolve the matter. C. Conference with Legal Counsel - Anticipated Litigation - Initiation of Litigation (Government Code § 54956.9(c)): Two matters: 1. Potential initiation of litigation on one matter in which disclosure of its underlying existing facts and circumstances would jeopardize the City's ability to conclude existing settlement negotiations to the City's advantage. 2. Potential initiation of litigation against the County of Orange for allegedly charging the City Property Tax Administration Fees in excess of those permitted by the Revenue and Taxation Code. D. Conference with Labor Negotiators (Government Code § 54957.6): Agency Designated Representatives: Human Resources Director Terri Cassidy and Assistant City Manager Dave Kiff Employee Organization: All city bargaining units. III. RECESS IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle VI. CLOSED SESSION REPORT Regarding Closed Session Item C -2, City Attorney Hunt reported that Council voted unanimously to Volume 59 - Page 102 City of Newport Beach City Council Minutes March 10, 2009 authorize the Office of the City Attorney to file a claim against the County of Orange and pursue its holding agreement. City Attorney Hunt also noted that on February 27, the Office of the City Attorney sent abatement letters to 11 former or currently operating group homes operators that have not fulfilled the February 22 abatement requirements. He reported that five facilities have confirmed their non - operational .status and nuisance abatement proceedings against the facilities who have not ceased operating will be discussed at the March 24 Council meeting. VII. PLEDGE OF ALLEGIANCE - Council Member Rosansky VIII. INVOCATION - Reverend Peter D. Haynes, Saint Michael and All Angels Episcopal Church D:. NOTICE TO THE PUBLIC X- CITY COUNCIL ANNOUNCEMENTS DR, MATTERS WHICH COUNCIL MEMBER;; WOULD LIKE PLACED ON_A FUTURE_ AGENDA FOR DISCUSSION' ACTION_ OR REPORT (NON- DISCUSS.IQN ITEM): Gild Council Member Daigle reported on her and Assistant City Manager Kiffs meetings with the City's Congressional representatives in Washington D.C. She indicated that there was tremendous support for completing the Upper Back Bay dredging, Lower Back Bay dredging, and Newport slough projects. Without objection, Council Member Gardner asked for a report to come back to Council that would shorten the hours for commercial solicitations. She also reported on the Water Wise event held at the Central Library and questioned if DVDs of the event could be made available to the public. Council Member Webb noted that Saint Patrick's Day is next week and welcomed Boy Scout Troop 746 who were in attendance to satisfy the requirements for earning the communication merit badge and citizenship of the community merit badge. He also reported that the Mariners Mile Business Association has requested to reinstitute funding for beautification and improvements to Mariners Mile between Riverside and Tustin. Council Member Henn reported on the Electronic Waste (E- Waste) collection event and indicated that about 200,000 pounds have been collected during these events. He indicated that the next collection will be held in October. He also reported that, in an effort to raise the quality of life for all Newport Beach residents, code enforcement of property and exterior maintenance has increased. He indicated that the sand relocation project along West Newport that will widen the beach and provide better sea and storm protection has started this week and should be completed by the middle of April. He reported that the American Cancer Society's Relay for Life event will take place on May 16 and May 17 at Newport Harbor High School and encouraged participation. Council Member Henn will be coordinating the City Councilmember's entry in the event, the "Council Critters," which will be raising donations for the event. Mayor Pro Tem Curry congratulated Hoag Hospital and the Newport Beach Golf Club for a successful Toshiba Golf Tournament and reported that the ground breaking ceremony for the new OASIS Senior Center will take place on March 24 at 2:30 p.m. Mayor Selich reported that he, along with Council Member Henn, attended the start of the Newport Beach to Cabo boat race. CONSENT CALENDAR A. READING OF MINUTES/ORDINANCES AND RESOLUTIONS Volume 59 - Page 103 City of Newport Beach City Council Minutes March 10, 2009 1. MINUTES OF THE REGULAR MEETING AND ADJOURNED REGULAR MEETING OF FEBRUARY 24, 2009. [100 -2009[ Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. B. ORDINANCE FOR ADOPTION 3. HYATT REGENCY NEWPORT BEACH EXPANSION (PA2005 -212) - 1107 JAMBOREE. [100 -20091 Adopt Ordinance No. 2009 -8 approving Development Agreement No. 2005 -002. C. CONTRACTS AND AGREEMENTS 4. COMMUNITY YOUTH CENTER PARKING LOT REHABILITATION (C -4132) - AWARD OF CONTRACT [381100 -20091 a) Approve the project plans and specifications; b) award Contract No. 4132 to L.M.T. Enterprises, Inc., dba Tyner Paving Company for the total bid price of $107,830.00, and authorize the Mayor and the City Clerk to execute the contract; and c) establish an amount of $7,170.00 (6.6%) to cover the cost of unforeseen work. 5. CENTRAL LIBRARY AIR CONDITIONING REHABILITATION (C11138) - AWARD OF CONTRACT. 1381100 -20091 a) Approve the project plans and specifications; b) approve a budget amendment (09BA -042) transferring $75,000 from project savings in Account No. 7015- C5100909 (Mariners Park Restroom), $72,000 from project savings in Account No. 7015- C5100817 (Mariners Park Improvements), and $13,000 from project savings in Account No. 7011- C5100809 (Newport Theatre Arts Center Entry) to Account No. 7019- C100202 for the capital purchase and repair of a new air conditioning unit for the Central Library; c) award Contract No. 4138 to BK Air Conditioning and Heating for the total bid price of $135,391.00 and authorize the Mayor and the City Clerk to execute the contract; and d) establish an amount of $20,300 (15% of total bid) to cover the cost of unforeseen work. 6. PROJECT MANAGEMENT SERVICE - APPROVAL OF AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT WITH RICHARD EDMONSTON (C- 3918). [381100 -20091 Approve Amendment No. 3 to Professional Services Agreement with Richard Edmonston of Huntington Beach, for project management at a not to exceed price of $15,500, and authorize the Mayor and City Clerk to execute the agreement. SETTLEMENT AGREEMENT - APPROVAL OF AMENDMENT NO. 1 TO THE SETTLEMENT AGREEMENT BETWEEN THE CITY AND SOBER LIVING BY THE SEA (SLBTS) (C4145). [681100 -20091 Authorize the Mayor to execute an amendment to the Settlement Agreement between the City and Sober Living by the Sea (SLBTS) that replaces an exhibit that was a previous draft of the Public Benefit and Zoning Implementation Agreement ("Zoning Agreement') with the Council- approved version of the Zoning Agreement. D. MISCELLANEOUS 11. APPOINTMENT OF KEVIN NOLEN TO THE ENVIRONMENTAL QUALITY AFFAIRS COMMITTEE (EQAC). [100 -20091 a) Approve Council Member Volume 59 - Page 104 City of Newport Beach City Council Minutes March 10, 2009 Gardner's appointment of Kevin Nolen to the District 6 at -large position; and b) EQAC's recommendation to reassign Sandra Haskell to the community association position on the Committee. Motion. by Mayor Pro Tem_.. Curry to approve the Consent Calendar, except for the Items removed (8, 9, and 10). The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle XIII. ITEMS REAM VED FROM THE CONSENT' CALENDAR 8. WORKERS COMPENSATION THIRD PARTY ADMINISTRATION (TPA) SERVICES - EXTENSION OF CONTRACT (C- 3040). (381100 -80091 In response to Council questions, Risk Manager Farley indicated that the 12 month contract extension will maintain stability and that the 3% increase will be applied to operational costs. She noted, however, that the contract will go out to bid at the next opportunity and that the contracts with CorVel Corporation are separate, even though Newport Beach and Costa Mesa are in a joint effort. Motion by Council. Member Henn to approve the contract extension for Third Party Administrator (TPA) services with CorVel Corporation with a proposed 3% increase to the existing annual fee of $254,311, plus an additional fee of $10,800 to handle the future medical maintenance files, for a total annual fee not to exceed $272,740 in 2009. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle 9. ORGANIZATIONAL REVIEW OF THE UTILITIES DEPARTMENT - APPROVAL OF CONTRACT WITH OMTS (C- 8889). (381100 -20091 In response to Council questions, City Manager Bludau indicated that OMTS will review the accuracy of the job descriptions based on the current titles and job functions. Utilities Director Murdoch indicated that a study for the classification certification of current employees was performed in 2006, but did not include upper management. He reported that the upper management structure is rapidly changing due to several vacancies and pending retirements. He indicated that OMTS will assist with the re- evaluation of what has been done, identify the successes, and assist in creating a succession plan in anticipation of future vacancies. Laura Curran questioned the risk of not completing this project, the size of the department being evaluated, the current organizational chart, results of the 2006 study, and the qualifications of the contractor versus performing the evaluation in- house. Motion by Council Member Webb to a) authorize the City Manager to sign a Professional Services Agreement with OMTS in an amount not to exceed $40,000 to perform an organizational review of the Utilities Department; and b) approve a budget amendment (09BA -041) in the amount of $40,000 from water and wastewater enterprise system reserves to Utilities' professional and technical services account. The motion carried by the following roll call vote: Volume 59 - Page 105 City of Newport Beach City Council Minutes March 10, 2009 Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle 10. NEWPORT TO ENSENADA INTERNATIONAL YACHT RACE - CITY COUNCIL SPONSORSHIP FOR A THREE YEAR PERIOD (C- 4157). (381100 -20091 Ralph Rodheim responded to Council questions regarding the benefit of the City's increased level of sponsorship and indicated that the Board of Directors has negotiated national televised publicity of the boat race to promote the City. Council Member Webb expressed his support of the $20,000 annual sponsorship. Council Member Henn indicated that the Economic Development Committee (EDC) is considering a proposal to form an advisory committee to review these types of requests and provide the City with a professional analysis of such events. Motion by Council Member Webb to authorize the Mayor and City Clerk to execute the sponsorship agreement that the City Council will be a Race sponsor for the next three years. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle XIV. QRAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Henn reported that the Economic Development Committee (EDC) will meet on March 18 at 8:00 a.m. and Scott Pompe of the Los Angeles Times will provide a report on the status of the Daily Pilot. Regarding the Ad Hoc Committee on Group Homes, Council Member Henn reported that the appeals for the Ocean Recovery continuance (1115 West Balboa Boulevard) and the Newport Coast Recovery denial (1216 West Newport Boulevard) will be on the March 24 agenda. He also indicated that a group homes use permit hearing for Yellowstone Recovery will be held in the Council Chamber on March 12 at 4:00 p.m. XV. PUBLIC HEARINGS 12. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE A2Z RECYCLING SERVICES, INC. (421100 -20091 General Services Director Harmon provided a staff report and indicated that A2Z Recycling Services will become the City's 28th franchise hauler and noted that there are four additional franchise hauler requests pending approval. In response to Council questions, he indicated that the Council Policy would need to be amended in order for these types of agreements to not require Council approval. Mayor Selich opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Rosansky to adopt Ordinance No. 2009 -6 granting a Non- exclusive Solid Waste Franchise to A2Z Recycling Services, Inc. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle Volume 59 - Page 106 City of Newport Beach City Council Minutes March 10, 2009 18. PROPOSED UNDERGROUND UTILITIES DISTRICT NO. 19 SANTA ANA HEIGHTS - MESA DRIVE, CYPRESS STREET AND A PORTION OF ORCHARD DRIVE. [891100 -20091 Civil Engineer Sandefur utilized a PowerPoint presentation to provide an overview of Underground Utilities District No. 19 (UUD -19), display the amended boundary map, provide a cost comparison to other underground utilities districts, discuss the private service conversions, and highlight the project timeline. In response to Council questions, he indicated that the estimated project cost of $7.5 million will be funded by the Redevelopment Agency, and noted that the property owners will be financially responsible for private property hook -ups as it could not be paid for with public funds. He noted that an election is not necessary for this district since there is no assessment to the property owners. Mario Mainero, Chief of Staff to Orange County Supervisor John Moorlach, responded to Council questions regarding reimbursement of funds, cost control, and accountability of payments. Mayor Selich opened the public hearing. Holly Jarvis expressed concern over the safety and unsightliness of the existing utility poles. James Kodomo expressed his support of the project and believed that it would benefit the community. Hearing no further testimony, Mayor Selich closed the public hearing. Following discussion regarding invoicing, reimbursement, Redevelopment District boundaries, use of government funds, and payment procedures between AT &T, Southern California Edison, the City, the County, and the Redevelopment Agency, it was the consensus of Council to continue this item to the Council meeting of March 24, 2009. Motion by Council Member Daigle to continue this item to March 24, 2009. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle XVI. PUBLIC COMMENTS - None XVII. CURRENT BUSINESS 14. OASIS SENIOR CENTER REBUILD PROJECT (C -8888) - AWARD OF CONTRACT. [381100 -20091 Deputy Public Works Director Webb provided a staff report and highlighted the cost breakdown of the project. He noted an error in the fundraising amount listed in the staff report and indicated that the total amount of donations to date is $9.6 million. Tim Stoaks, OASIS Executive Building Committee, expressed concern regarding the contingency amount of $1,104,700. Public Works Director Badum indicated that a 10% contingency of the total bid amount will be held by the City to cover any cost due to unforeseen work. Mayor Pro Tem Curry commended the Friends of OASIS on their fundraising efforts and noted that the City saved up to $8 million on construction costs and an additional $8 million in financing fees as a result of receiving competitive bids, private donations, and Volume 59 - Page 107 City of Newport Beach City Council Minutes March 10, 2009 development fee money. He pointed out that the City was also able to fund this project without needing financing. Motion.. by Mayor Pro Tem Curry to a) approve the project plans and specifications; b) award Contract No. 3888 to KPRS Construction Services, Inc. for the total bid price of $11,047,000.00, and authorize the Mayor and the City Clerk to execute the contract; c) establish a contingency amount of $1,104,700 (l0% of total bid) to cover the cost of unforeseen work; d) contingent upon the ability to approve and permit by the City's Building Department, approve awarding Alternative Bid Item A3 - "furnish and install the tensile membrane structures as specified on the plans and in the specifications," to KPRS Construction Services, Inc. for the bid amount of $207,000.00 - this amount would be in addition to the base contract amount and any contingency allowances; and e) authorize City Risk Management staff to purchase a "Builder's Risk" insurance policy on the OASIS construction project (cost for said policy should be in the range of $65,000 to $75,000 to cover the 18 months construction period). The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle 15. NEWPORT BEACH CONFERENCE AND VISITOR'S BUREAU ( NBCVB) AGREEMENT (C- 2638). (38/100 -20091 City Manager Bludau provided a staff report and introduced Gary Sherwin, President and Chief Executive Officer of the of the Newport Beach Conference and Visitors Bureau ( NBCVB), who provided a report on the current economic status of the tourism industry. He responded to Council questions regarding special events and indicated that proposals will be provided to Council to allow a professional vetting of events prior to Council's decision to commit funds. Regarding Council questions, Mr. Sherwin believed that a five year contract is necessary to address long term obligations. Council Member Gardner stated that she understands why NBCVB is requesting a five year contract and noted that the City could terminate the agreement with a 30 -day notice. Mayor Selich felt that a three year contract would be sufficient. Council Member Rosansky agreed and questioned the amount of the investment to be made versus the return on investment to be received. Council Member Henn noted that he was impressed with the NBCVB's benchmarking approach of having measures to track and felt that the City has a good basis to form judgments. Council Member Daigle also expressed concern regarding the length of the contract due to the uncertainties about the City's revenues and felt that it was important for the NBCVB to provide an annual report. Mayor Pro Tem Curry believed that the cost of not remaining competitive is a potential precipitous decline in revenue generated by the Transient Occupancy Tax (TOT) and felt that this is an investment, not a cost, to keep the NBCVB competitive worldwide. Council Member Henn expressed his appreciation for Mr. Sherwin's strategic outlook and noted his reasons for supporting the five year contract. Laura Curran expressed concern for approving the contract prior to receiving a budget report, and questioned how the success was measured, how the proposed agreement will improve the City over the next five years in comparison to the previous agreement, and how the NBCVB will improve the current situation. In response to Ms. Curran's concerns, Mr. Sherwin indicated that a comprehensive report is provided at the annual meeting and indicated that the measure of success is established by the hospitality community. Motion by Council Member Rosansky to approve the proposed agreement with NBCVB, Volume 59 - Page 108 City of Newport Beach City Council Minutes March 10, 2009 extending the terms of the existing agreement through June 30, 2014. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle 16. REQUEST TO FORM A TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) UNDER THE 1994 PBID LAW. 1100 -20091 In response to Council questions, Gary Sherwin of the Newport Beach Conference and Visitors Bureau ( NBCVB) indicated that Pelican Hill was not included in the TBID because The Irvine Company has opted to not be a part of the TBID at this time; however, The Irvine Company has requested to discuss the topic with the NBCVB at a meeting this week. Laura Curran expressed concern relative to the revenue generated by hotels. She also questioned the marketing activities and their impacts, and the allocation of $1.7 million for estimated expenditures. Motion by Mayor. Pro. Tern. Cur to agree to consider the formation of a Tourism Business Improvement District (TBID) by taking the following actions - a) accept the petitions; b) review and accept the Tourism BID Draft Management District Plan; c) adopt Resolution of Intention No. 2009 -14 to establish the TBID and set the public meeting and public hearing dates for the City Council meetings of April 14 and April 28, 2009, respectively; and d) establish an Administrative Fee of 0.25% to cover City administrative support services. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle 17. AMENDMENT TO NUISANCE ABATEMENT ORDINANCE TO PROVIDE FOR RECOVERY OF ATTORNEYS' FEES AND COSTS IN NUISANCE ABATEMENT ACTIONS. [100 -20091 City Attorney Hunt noted that the ordinance was re- drafted to be consistent with a 2007 court case and indicated that statutes were put in place to be consistent with the Government Code that allows the other party to not collect more than what the City actually incurs. Motion by Mayor Pro Tem Curry to introduce Ordinance No. 2009 -9 amending Section 10.50.160 of the Newport Beach Municipal Code, and pass to second reading on March 24, 2009. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle 18. FORMATION OF AN AD HOC COMMITTEE FOR NEGOTIATING THE CONEXANT AND KOLL COMPANY DEVELOPMENT AGREEMENTS. [100 -20091 Motion by Council Member Rosansky to pull the item from the calendar. The motion carried by the following roll call vote: Volume 59 - Page 109 City of Newport Beach City Council Minutes March 10, 2009 Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Selich, Council Member Webb, Council Member Gardner, Council Member Daigle XVIII. MOTION,FOR RECONSIDERATION - None XIX. ADJOURNMENT - 9:22 p.m. The agenda for the Regular Meeting was posted on March 4, 2009, at 4:05 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The amended agenda for the Regular Meeting was posted on March 6, 2009, at 4:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Volume 59 - Page 110