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HomeMy WebLinkAbout01 - MinutesAgenda Item No. January 8, 2013 City Council Minutes Regular Meeting November 27, 2012 — 7:00 p.m. I. STUDY SESSION - Cancelled II. ROLL CALL - 6:00 P.m. Present: Council Member Hill, Mayor Pro Tem Curry, Mayor Gardner, Council..Vlember Selich, Council Member Henn, Council Member Daigle Excused: Council Member Rosansky III. PUBLIC COMMENTS - None IV. CLOSED SESSION - 6:00 p.m. A. CONFERENCE WITH LEGAL COUNSF, - 4NTICIPATED,LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(0)' t potential case B. CONFERENCE WITH LABOR,NEGOTIATORS .�Government)Code § 54957.6) Agency Designated Representatives:' .Dave Kiff, City Manager and Terri Cassidy, Deputy City Manager /Human Resources Director; Negotiators Employee- Organizations: All Labor�'.Associations: Association of Newport Beach Ocean Lifeguards (ANB6Q: Newport Beach City Employees Association (NBCEA); Newport Beach Employees League` ^(LABEL) ;. Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport Beach PaA,Time Unit (UPEC, Local 777); Newport Beach Police Asso'ci'ation (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Association (NBPTEA) V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Hill; Mayor Pro Tern Curry; Mayor Gardner; Council Member Selich; Council Member Henn; Council Member Daigle Absent/Excused: Council Member Rosansky VIII. CLOSED SESSION REPORT - City Attorney Harp reported that there were no reportable actions taken. Volume 60 - Page 648 City of Newport Beach City Council Minutes November 27, 2012 IX PLEDGE OF ALLEGIANCE - Council Member Selich X. INVOCATION -Melinda Blackman, Harbor Christian Church XI. PRESENTATION Presentation of Cultural Arts Grant Checks - Arts Coordinator Barbier and Library Services Director Cowell thanked Council for its support. City Arts Commission Chairman Robert Smith addressed various events sponsored by the Arts Commission and presented the grant checks to the South Coast Repertory Theater, Southland Opera, Newport -Mesa YMCA, ExplorOcean Nautical Museum, Newport Beach Film Festival, Festival Ballet Theater, and the Baroque Music Festival of Corona del Mar. XII. NOTICE TO THE PUBLIC XIII. Council Member Henn reported that the Tidelands Management Committee will be meeting on November 28 in the Council Chambers at 4:60 p,m. and•announced that a Special Council Meeting will be held in the Council Chambers at 6:00 p.m. on November 28 to discuss residential dock rents. Council Member Selich reported that there will be a tree• lighting ceremony in front of the Balboa Island Fire Station on December 2 from 4:00 p.m. to 6:09 p.m. Mayor Gardner announced that "the Corona del Mar Christmas Walk will be held on December 2 from 11:00 a.m. to 4:00 p.m. and that there will be a tree lighting ceremony on December 1 at ExplorOcean at 6:00 p.m., with children's activities starting at 2:00 p;m. She also reported that the December 11 Council meeting will be held at the new Council Chambers, but the meeting is not the grand opening for the facility which will occur in the spring or summer of 2013. XIV. CONSENT CALENDAR Council Member Henn encouraged residents to read the Quarterly Business Report (QBR) (Item 20) which is also available on the City's website (www.newportbeachca.gov). In response to Council Member Hill's questions regarding Item 3 (Approval of Measure M2 Expenditure Report), Item 5 [CalRecycle Rubberized Pavement (TRP) Grant Authorization], Item 9 (2012 -14 Streetlight Improvement Project), and Item 10 (Reprog•aphic Services), Public Works Director Webb indicated that only Item 3 deals with Measure M2 expenditures; the contract associated with Item 5 contains standard language provided by the State and that he guaranteed that he will not designate the authorization to anyone else; and staff has analyzed paybacks and provided details (Item 9). Regarding Item 10 (Reprographic Services), City Manager Kiff indicated that utilizing retired employees to perform the tasks would entail a contract with the State, not the City, so the retired employees would not be prohibited by the provision. A. READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. MINUTES FOR THE NOVEMBER 13, 2012 STUDY SESSION AND AND REGULAR MEETING. [100 -20121 Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all Volume 60 - Page 649 City of Newport Beach City Council Minutes November 27, 2012 ordinances and resolutions under consideration, and direct the City. Clerk to read by title only. B. RESOLUTIONS FOR ADOPTION APPROVAL OF MEASURE M2 EXPENDITURE REPORT. [100 -20121 Adopt Resolution No. 2012 -103 approving the M2 Expenditure Report, substantially to form, subject to technical revisions in conformance with the Orange County Transportation Authority (OCTA) guidelines. 4. REIMBURSEMENT RESOLUTIONS FOR MARINA PARK, SUNSET RIDGE PARK, AND 1499 MONROVIA EXPENDITURES. [100 - 2012] a).Adopt Resolution No. 2012 -104 that would allow the City to reimburse itself for project costs incurred prior to debt issuance for the Marina Park project; b) adopt Resolution,'.Vo.2012 -105 that would allow the City to reimburse itself for project costs incurred prior`;to debt issuance for the Sunset Ridge Park project; and c) adopt Resolution.No. 2012-106 that would allow the City, to reimburse itself for project costs incurred prior to debt issuances for the acquisition of the property at 1499 Monrovia. 5. CALRECYCLE RUBBERIZED PAVEMENT (TRP) GRANT AUTHORIZATION. [100- 2012] Adopt Resolution No. 2012 -,107 authorizing:.the Public Works Director to act as the "Authorized Agent" to execute for, and on - behalf of the City any grant documents, including but not limited to, applications; , agreeii tints, amendments and request for payment, necessary to secure grant funds and jmplementi the. approved CalRecycle grant project. 6. AUTHORITY TO PROVIDE DATA FOR SALES AND USE TAX ANALYSIS AND RECOVERY OF REVENUE. [1007-2012] Adopt Resolution No. 2012 -108 authorizing Hinderliter, de Llmas & Associates HdL,accees to confidential taxpayer records. C. CONTRACTS AND AGREEMENTS . 7. 15TH STREET ROAD REHABILITATION PROJECT - OLD NEWPORT BOULEVARD TO REDLANDS AVENUE - NOTICE OF COMPLETION AND ACCEPTANCE OF CONTRACT NO. 5077. [381100 -20121 a) Accept the completed work acid authorize the City Clerk to file a Notice of Completion; b) authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) release the Faithful Performance Bond one year after Council acceptance. 9. 2012 -13 STREETLIGHT IMPROVEMENT PROJECT - AWARD OF CONTRACT NO. 5193. [381100- 20121 a) Approve the project plans and specifications; b) approve Pro Tech Engineering's request to withdraw its bid; c) award Contract No. 5193 to Rakan, Inc. for the total bid price, including additive bid items, of $133,780 and authorize the Mayor and the City Clerk to execute the contract; and d) establish a contingency of $14,000, approximately 10 percent, to cover the cost of unforeseen work. 10. CONTRACTING OUT REPROGRAPHIC SERVICES; APPROVAL OF OFFICE DEPOT AGREEMENT (C- 5278). [381100 -20121 a) Authorize the Mayor and City Clerk to execute a 3 -year contract with Office Depot to provide reprographic services for all work performed not to exceed $600,000 without prior authorization from the City; b) direct the Volume 60 - Page 650 City of Newport Beach City Council-Minutes November 27, 2012 City Manager to amend position control by a reduction of 2.0 FTE's; and c) authorize the City Manager to redistribute budget from a centralized cost center (Finance Department) to individual department budgets. 11. AMENDMENT NO. ONE TO AGREEMENT WITH SAMPSON OIL COMPANY FOR ADDITIONAL SERVICES TO MANAGE AND OPERATE THE CITY'S OIL FIELDS (C- 4463). 1381100 -20121 Authorize the Mayor and City Clerk to enter into Amendment No. One to Professional Services Agreement with Sampson Oil Company to provide additional management and operations services for the City's oil fields. 12. TRAFFIC SIGNAL MAINTENANCE - APPROVAL OF MAINTENANCE AGREEMENT WITH SIEMENS INDUSTRY, INC. (C5279). [381100 -20121 a) Approve a Professional Services Agreement with Siemens Industry,'_•Ine. of Anaheim for annual maintenance of the City's traffic signal equipment,for a not -to- exceed price of $280,000 per year (the initial term of the agreement shall be for a period of one, year with the option to extend the agreement for an additional four years); ,h) authorize the Public Works Director to extend the maintenance agreement annually up to a total of five years upon successful completion of an annual review; and c) authorize4he Mayor and City Clerk to execute the agreement. 13. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH ITERIS, INC., FOR TRAFFIC SIGNAL MODERNIZATION P- ROJECT (C -5280) - SAN JOAQUIN HILLS ROAD (PHASE 6A) AND - NEWPORT COAST DRIVE (PHASE 6B). [381100- 2012] Approve a single source Professional'Services Agreement with Iteris, Inc. of Santa Ana for design of San Joaquin Hillsload (Pha_-e 6A)•and Newport Coast Drive (Phase 6B) of the Traffic Signal Modernization Project at a not -to- exceed price of $387,305 and authorize the Mayor and Citv Clerk to execute the_Agreement. 14. APPROVE A COOPERATIVE AGREEMENT WITH THE CITY OF IRVINE FOR THE FORD -ROAD AND UNIVERSITY DRIVE TRAFFIC SIGNAL SYNCHRONIZATION PROJECT (C- 5281). [381100 -2012] a) Approve the Cooperative Agreement-with the'City of Irvine for engineering, construction, and implementation of the Culver Drive - Bonita Canyon Drive -Ford Road and Jeffrey Road- University Drive TSSP projects; and b) authorize the Director of Public Works to approve future Cooperative Agreements for joint. OCTA Measure M2 Regional Traffic Signal Synchronization Program TSSP projects. 15. ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA) AMENDMENT NO. 15 TO COOPERATIVE AGREEMENT NO. C -95 -985 (C- 3051). [381100 -2012] Approve Amendment No. 15 to Cooperative Agreement No. C -95 -985 between the OCTA and the City of Newport Beach, and authorize the Mayor and City Clerk to execute the Amendment. 16. ORANGE COUNTY TRANSPORTATION AUTHORITY (OCTA) COOPERATIVE AGREEMENT C -2 -1842 FOR PROPOSITION 113 STATE -LOCAL PARTNERSHIP PROGRAM FUNDING FOR BALBOA BOULEVARD AND CHANNEL, ROAD PAVEMENT RECONSTRUCTION (C- 5282). [381100 -2012] Approve Cooperative Agreement C -2 -1842 with OCTA for State -Local Partnership Program funding for Balboa Boulevard and Channel Road Pavement Reconstruction project, and authorize the Mayor and City Clerk to execute the agreement. 17. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH URS Volume 60 - Page 661 City of Newport Beach City Council Minutes November 27, 2012 CORPORATION TO DEVELOP A FEASIBLE DESIGN CONCEPT FOR SEAWALLS ON BALBOA ISLAND AND LITTLE BALBOA ISLAND (C- 5208). [381100 -2012] Approve Professional Services Agreement with URS Corporation (URS) of Long Beach, California, at a -cost not to exceed $222,800, and authorize the Mayor and City Clerk to execute the agreement. 18. RECEIVE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) REIMBURSEMENT FOR STORM - RELATED WORK AT NEWPORT BEACH CIVIC CENTER. [100 -2012] Approve Budget Amendment No. 13BA -022 transferring funds received into the General Fund from FEMA in FY 12 to the Civic Center Fund in FY 13 and appropriating $127,030 to 7410- CIO02030 for storm related einergency repairs made to the Civic Center site. 19. AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH ANDERSON' PENNA. FOR CIVIC CENTER PLAN CHE.CK�AND INSPECTION SERVICES (C- 4527). [381100 -2012] a) Authorize the City,,'kanager and City Attorney to execute an amendment to the PSA with Anderson,_ Tenna,, .increasing the 'm 'nal contract by $205,805.90 to a revised cost not to_exceed.$1,296,645.90; and b).,''approve Budget Amendment No. 13BA -023 appropriating`S205 -.805.90 from the Facilities Replacement fund to Account No. 7410- C1002031. D. MISCELLANEOUS 20. QUARTERLY BUSINESS REPORT (QBR)'- JULY THROUGH SEPTEMBER 2012. [100 -2012] Receive and file. 21. FIRE DEPARTMENT TIMECARD SOFTWARE ACQUISITION. [100 -2012] Approve Budget Amendment No. 13BA -021 in the amount of $104,026 from the Information Technology Strategic Fund unappropriated fiord balance to expenditure account 6420 -9315. Motion by Mayor Pro Tem Curry, seconded by Council Member Hill to approved the Consent Calendar, except for the items 'removed (8 and 22). The motion tarried by the following roll call-vote: Ayes: Council Member Hill, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Council Member Rosansky XV. ITEMS REMOVED FROM THE CONSENT CALENDAR 8. JAMBOREE ROAD BRIDGE WIDENING OVER STATE ROUTE 73 - NOTICE OF COMPLETION AND ACCEPTANCE OF CONTRACT NO. 3724.[38/100-2012] Council Member Daigle addressed the improvements made and thanked Public Works Director Webb for his work and efforts on the project. She added that the project has also allowed the City to collaborate further with the City of Irvine. Public Works Director Webb discussed the project challenges and decreased costs. He reported on the ongoing projects in cooperation with the City of Irvine and noted that the improvements should last until 2025. Volume 60 - Page 652 City of Newport Beach City Council Minutes November 27, 2012 Motion by Council Member Daigle, seconded by Council Member Henn to a) accept the completed work and authorize the City Clerk to file a Notice of Completion; b) authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) release the Faithful Performance Bond one year after Council acceptance. The motion carried by the following roll call vote: Ayes: Council Member Hill, Mayor Pro Tern Curry, Mayor Gardnerj Council Member Selich, Council Member Henn, Council Member Daigle Absent: Council Member Rosansky 22. NON - HABITABLE USE COVENANT APPLICABLE TO BLOCK 100 NEWPORT CENTER DRIVE AND SAN JOAQUIN HILLS PLAZA WITHIN THE NEWPORT CENTER PLANNED COMMUNITY (C- 5285). [381100 -2012] - Council Member Daigle addressed the tracking of'squarefootage -and requested that the City be more decisive and that the methodology used be'included;in the agreement in the future. Senior Planner Campbell addressed amendments to the covenant which were 'distributed to Council, as well as the public, and noted that the City will work in consultation with The Irvine Company to ensure that the area is identified appropriately and to address the definition of the building as "uninhabitable." He noted that The Irvine Company is in agreement with the proposed changes to the covenant. Council Member Hill addressed the distinction between considering the entire building as uninhabitable versus it being uninhabitable, and provided- suggested language. City Attorney Harp also suggested language to be used in the agreement. Dan Miller, The Irvine Company, discussed the intent of the use of "uninhabitable" and agreed with the additional changes and suggested language changes. Motion by Mayor Pro. Tem - Curry, seconded by Council Member Selich to a) find the requirement „for environmental review pursuant to the California Environmental Quality Act (CEQA)is "satisfied by the prior, certification of the Final Environmental Impact Report for the 2006 General Plan Update (SCH, No. 2006011119) including Addendum Nos, 1 and 2; and b) aufh_orize the Community.,Developinent Director to sign a covenant on behalf of the City regarding the restriction and use of;huilding area within the North Newport Center Planned Community (NNCPC), specifically Block 100 and San Joaquin Hills Plaza. The motion carried by the following roll call vote: Ayes: Council Member +. Hill, Mayor Piro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Council Member Rosansky XVI. PUBLIC COMMENTS Dan Wampole thanked Council, staff, and all the volunteers for their hard work in making this the last meeting in the current Council Chambers, and thanked the City for the new City Hall and a new beginning. Stephanie Barger thanked the City for making its marine resources a priority, as well as for having volunteers guard the tide pools. She also thanked the volunteers who worked on the Adopt -a -Beach program and encouraged the City to enforce its littering laws. Volume 60 - Page 653 City of Newport Beach City Council Minutes November 27, 2012 Kimberly Minims discussed safety in schools and the creation of a YouTube site called 'Bullying Warrior." She asked Council to support safety in its schools, provided personal testimony, and addressed negative impacts to families due to issues with the school district. Jim Mosher addressed the upcoming meeting in the new Council Chambers and referenced the City Charter, believing that changing the Mayor and Mayor Pro Tem every December, rather than upon the election of new Council Members is unnecessary and improper. XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Daigle reported on the recent meeting of the Aviation Committee and noted that the City is considering hiring a division of General Electric to help .with,the design of a future departure pattern. She commended City Manager Kiff and others for their conti iued.efforts on the matter. XVIII. PUBLIC HEARINGS 23. VACATION OF A PORTION OF AN EXISTING ALLEY,AT 3900 EAST COAST HIGHWAY. [100 -20121 Public Works Director Webb utilized a PowerPoint presentation to discuss the location of the site, background, previous vacation of a section of the alley, and the vacation of the alley by the applicant and the adjoining neighbor. He stated that the City no longer needs the alley for access and presented recommendations. He:, noted that upon vacation of the alley, the City would maintain an easement for utilities. He also addressed retentionof the easement. Council Member Selich noted that there were previous plan for a Jaguar dealership that needed access to its property through the alley. Discussion followed gegarding'a possible future condominium project. Public Works Director Webb indicated that, if there, is a need in the future, the City could reverse the vacation of the alley. Mayor Gardner,.opened ti d pubiic: hearing.. Magdi- Hanna, applicant, reported that the area is no longer zoned commercial, but is now residential. He reported that his, project involves the development of individual, detached townhomes and there is no need in the future to connect to the alley. In response to Council questions, Mr. Hanna reported that the right -of -way still exists and that there are plans to underground the utilities. He reported there is no need for the alley, it is in a blighted con&d6n, and the; development will improve the property. He stated that a retaining wall will be installed and thatfit will not add floor area to the project. He added that the vacation will allow for an additional,parking spot for his development. He noted that the elevation of the slope is an issue and addressed the possibility of the adjacent property being able to extend their home. Dan Purcell encouraged the property owner to clean up the area. He commented on the future development and suggested that Council wait until the Planning Commission considers the project before making a decision. He provided a brief history of the property. Jim Mosher expressed concern regarding adding public land to private property and believed that the City should expect compensation from property owners on either side of the site. There being no further public testimony, Mayor Gardner closed the public hearing. Motion by Council Member Hill, seconded by Mayor Pro Tem. Curry to adopt Resolution Volume 60 - Page 654 City of Newport Beach City Council Minutes November 27, 2012 No. 2012 -109 ordering the vacation of a portion of an existing alley, direct staff to process the vacation of said alley, and direct the City Clerk to have Resolution No. 2012 -109 recorded by the Orange County Recorder. The motion carried by the following roll call.vote: Ayes: Council Member Hill, Mayor Pro Ter Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Council Member Rosansky 24. EMERSON ISLAND ANNEXATION LOCATED AT THE NORTHEAST CORNER OF TUSTIN AVENUE AND EMERSON STREET (PA2012 -034). [23/100 -20121 Community Development Director Brandt presented a brief background. Associate Planner Nueno provided a PowerPoint presentation to discuss the location, surrounding properties, zoning, existing conditions, proposed land use, proposed- zoning, consideration by the Planning Commission and related recommendations, as well as options for Council consideration. In response to Council Member Hill's - question,, Associate:Planner Nueno reported that all of the properties will be conforming as to the number_ of dwelling units and that setbacks appear to be conforming, as well. Council Member Daigle addressed other "islands" in'the area and other requests by LAFCO to annex other areas. City Manager 3(ff addressed efforts by the Local Aggency Formation Commission ( LAFCO) and the requirement to have approval: -by residents and other agencies. Mayor Gardner opened the public hearing Jim Mosher asked if other "options have been considered, noted previous mistakes made regarding the annexation, and believed that residents would be better served by having both sides of the alleyway in the same city. He recommended: zoning the area in a way that would maintain the status quo. There being no other testimony, Mayor Gardner closed the public hearing. Motion by -Mavor Pro 'Tom Curry. "seconded by Council Member Selich to a) adopt Resolution No. 2012.110 approving General Plan Amendment No.. GP2012 -001; b) introduce Ordinance No. 2012 -23 approving> Zoning Code Amendment No. CA2012 -002, and pass to a second reading on January 8, 2013; c) adopt Resolution No. 2012 -111 requesting the Local Agency Formation Commission ( LAFCO) to initiate proceedings for the annexation; and d) adopt Resolution, No. 2012 -112 approving a property tax exchange agreement with the County of Orange. The motion carped by the following roll call vote: Ayes: Council Meinber'Hill, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Council Member Rosansky 26. FARALLON -CIVIC CENTER DRIVE STREET RENAMING. [100 -20121 Community Development Director Brandt provided a PowerPoint presentation to provide the background and referenced a proposal by the Building Committee. She addressed location and existing conditions, and noted that there are no buildings using Farallon Drive as their street address. However, there are over 200 businesses that use Avocado Avenue as an address and would be negatively impacted by a street name change. She reported that before becoming Farallon Drive, the street was named Civic Center Drive. She noted an amendment to the resolution that expands the declaration. Volume 60 - Page 655 City of Newport Beach City Council Minutes November 27, 2012 Mayor Gardner opened the public hearing. Hearing no testimony, she closed the public hearing. Motion by Council Member Selich, seconded by Council Member Hill to adopt Resolution No. 2012 -113 approving the name change from Farallon Drive to Civic Center Drive and finding that the action is exempt from the California Environmental Quality Act ("CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3. The motion carried by the following roll call vote: Ayes: Council Member Hill, Mayor Pro Tem Curry, Mayor dardner, Council Member Selich, Council Member Henn, Council Member Daigle - Absent: Council Member Rosansky XIX. CURRENT BUSINESS 26. AMENDMENTS TO VARIOUS CITY COMMITTEES AND CITY COUNCIL_ POLICY A -6 (OPEN MEETING POLICIES). [100 -2012] . City Manager Kiff reported that Council established a Task +.Force on Committees and noted that it has issued a report recommending extending the term of the Tidelands Management Committee, amending the Coastal /Bay Water Quality Advisory-C.ommittee and reestablishing it as the Water Quality /Coastal Tidelands Management Committee with new duties, amending the Environmental Quality Affairs Citizens Advisory Committee and. reestablishing it as the Environmental Quality Affairs Committee, disbanding the Special Events Advisory Committee, and amending City Council Policy A -6 regarding Open Meeting Practices and Policies. City Attorney Harp', explained the revisions to City Council Policy A -6 in terms of submitting materials on the Mondays before regular meetings by 5:00 p.m. to allow for staff review. Mayor Gardner added that this change also benefits' esidents since it allows Council adequate time to review documents, Mayor Gardner providechfurther explanation regarding the changes to committees as presented Council Member Henn addressed the benefits of standardizing the governance structure and spreading out the annual committee reappointment process. He stated changes to the Harbor Commission are still being' discussed for the ongoing and proactive management of all of the City's tidelands. Council Member Daigle questioned the need to reconstitute and reset the terms of the Water Quality Committee. ,Mayor Gardner stated that terms were lacking in the subject committee and noted the need to clarify the roles of the committees to avoid duplication and redundancy. She noted that most of the members will continue to participate. Council Member Daigle commented on the lack of focus on the Upper Bay, the City's rote in the John Wayne Gulch and the Big Canyon Lower Bay Creek projects. She reported that she would like to take an active role in moving those projects forward. Dan Purcell expressed support for the item, but concerns regarding the deadline for communications'befor•e Council regular meetings since agendas are not published enough time in advance. He suggested that the City commit to publishing agendas at least a week in advance of meetings to allow enough time for public review. Volume 60 - Page 656 City of Newport Beach City Council Minutes November 27, 2012 Jim Mosher reiterated concerns voiced by the previous speaker, questioned the "required by taw" relative to the deadline for submission of documents, and suggested replacing it with "permitted by law." He noted that nothing in the resolution indicates that this would apply to regular meetings and believed that the documents need amending and that the ordinance takes precedence over the' policy. City Attorney Harp agreed with using "permitted by law" and addressed the issue of late submittals. Motion by Council Member Henn, seconded by Mayor Pro :Tem Curry to a) adopt Resolution No. 2012 -114 extending the term of the City Council Committee on Tidelands Management; b) adopt Resolution No. 2012 -115 amending the Coastal/Bay Water Quality Advisory Committee and reestablishing it as the Water Quality /CoastaLT— idelands Management Committee; c) adopt Resolution No. 2012 -116 amending the Environmed6l. Q'u'ality Affairs Citizens Advisory Committee and reestablishing it as the Environmental, Quality Affairs Committee; d) adopt Resolution No. 2012 -117 disestablishing the Special Events Advisory Committee; and e) adopt amend Resolution No. 2012 -118 amending City Council Policy A -6 (Open Meeting Policies). The motion carried by the following roll call vote Ayes: Council Member Hill, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle: Absent: Council Member Rosansky 27. STUDY OF CITY REFUSE COLLECTION SERVICES. 1100 -2012) Municipal Operations Director Harmon provided a Power,P6int presentation and recognized the solid waste collection employees in the audience. He referenced Council's approval of a comprehensive review of City -wide services.and addressed the steps involved in the process. He reported that an ' evaluation 'of the current program, costs of the current collection program including direct incremental costs and overhead, and competitive rates of surrounding cities was performed. Discussion, followed, regarding achieving economies of scale, the need for staff to manage outsourcing contracts; and the.'inequity of comparing other city rates with Newport Beach since City rates include administrative, costs. Municipal Operations Director Harmon reported that the companies used for rate comparatives included private haulers who collect their fees directly from residents, while the City;lq rates include a group of people that support operations. He also explained the current oversight process for contract refuse haulers. In response to questions. Municipal Operations Director Harmon reported that Costa Mesa residents are billed directly by the Costa Mesa Sanitary District. He noted that challenges for City - provided service;. include equipment costs, labor costs, CNG equipment costs, levels in the reserve budget for purchasing equipment, availability of grants, ongoing maintenance, transition costs to automate service, and program enhancements. He presented factors relative to potential savings and costs for contract services, and noted the need for a City -wide sustainable plan. He stated that the City of Redondo Beach initially allowed unlimited trash, had areas that were semi - automated, and had a three- container system; however, they reduced their costs by 6% by going to an automated program. Redondo Beach also allows residents to pile extra waste next to the automated containers. Council Member Hill commended staff and the consultants for the extensive report. He noted the possibility of significant savings, but potential higher costs based on additional services provided. He stated that the comparisons provided were from cities that are already automated and use Volume 60 - Page 657 City of Newport Beach City Council Minutes November 27, 2012 three containers. He believed that the savings are based on service and that it is the City's responsibility to provide a certain level of service while seeking to 'decrease costs; however, requiring residents to separate their waste is a reduction in the level of service and that there are a significant number of properties that could not handle the addition of containers. Mayor Gardner indicated the importance of separating containers and that more people are interested in recycling and are aware of the problems regarding landfills. Council Member Henn stated there is no rule that the City has to preserve the exact same services when outsourcing. He commented on the need for balance and to develop strategies to determine what areas can be automated and what areas cannot. He addressed the availability of various container sizes and assistance for the elderly. In response to Council Member Selich's question, Municipal., Operations Director Harmon reported that he would not recommend a narrow scope for the RFP' because a:;hauler may include various services and the City has a need for flexibility. He recommended that Council direct staff to work with HF &H Consultants, LLC, to develop and generate an appropriate RFP.' Council Member Daigle noted that residents are satisfied with the current level of service and suggested providing more education to residents. Mayor Pro Tem Curry indicated the importance of making evidence -based decisions with good, comparable data that can be analyzed and provide answers, He indicated the he will support the RFP process which attempts to provide. similar services to what residents already experience. He suggested developing a plan to provide fob opportunities for displaced employees and noted that the savings are too large to ignore. George Schroeder believed that Council needs better information and commented on the number of narrow side yards throughout the City that could not accommodate automated service. He addressed the annual budget and believed that the current system works well. Stephanie Barger thanked Council for considering the item and noted that there are many residents who support rec. 1, ng' She, addressed landfill issues, - greenhouse gases, and the importance of zero- waste. ,She encouraged _ the City to set zero -waste mandates and goals, presented examples of other 'cities who have zero -waste efforts, and asked Council to consider putting together a zero -waste taslc.force. She commended the existing haulers for the work they do. . Municipal Operations Director Harmon reported that the Material Recovery Facility (MRF) recycling process works well. Council Member Hill commented on existing recycling services available in the City Nancy Skinner commended Council for its efforts. She spoke in support of increased recycling in the City, implementing a multi - container system, and for increased environmental efforts. Jamie Newton, Orange County Employees Association, expressed concerns regarding the possibility of displacing employees. She spoke in support of the City's Refuse Division, listed added value services provided by the City, and the Division's approval rating. She asked that the City consider, develop, and study an internal strategy on the collection of waste and offered to help with the process. She suggested that residents also be involved in the process. Jim Fitzpatrick, Member of the Costa Mesa Sanitary District (CMSD) Board, stated that he believes in a competitive bidding process. He addressed rates and noted that Newport Beach rates Volume 60 - Page 658 City of Newport Beach City Council Minutes November 27, 2012 are lower than those of CMSD. He .noted challenges with competitive pricing because of the number of variables involved relative to the service provided. He addressed the trend to move toward a single - container system and noted the need to handle organic waste and related costs. He reported that the process is complex, and suggested that the City determine what it wants before issuing an RFP and addressed the areas in Newport Beach that are serviced by CMSD. Dan Purcell discussed issues relative to attached lids versus detached lids, noting the preference for and benefits of attached lids. Allen Diner asked about the impacts to the Corporate Yard facility,�should the City decide to outsource this service. He believed that the facility is in bad condition and needs to be improved. City Manager Kiff indicated that the condition of the Corporate Yard is yet to be determined. Council Member Henn discussed environmental benefits of the immediate conversion of CNG trucks and expressed confidence that in the bidding process, bidders would determine how to deal with the unique conditions in the City and tailor solutions to issues in specific areas. He added that the only way to know is to get as much information as possible. He addressed the customer rating that also included the haulers in Newport Coast and'spoke positively about participating in the bidding process. He noted opportunities for the internal department to provide a competing bid, in parallel with outsource companies. Council Member Selich questioned the viability of enforcing a green waste program. He indicated that he will support going out for an RFP. Mayor Gardner believed that it would be valuable -to consider `dvhat options are available and the possibility of limiting the types of things being pickedSUp4 - City Manager Kiff reported'. chat this is a huge investment and believed that a private company could underbid the serhices that the City could provide. He proposed working with staff so that they can come up with ways that the City's existing system could be more efficient for Council consideration rather -tban within the RFP process. Motion by Council MeM` bi`r`Henn, seconded by Council Member Daigle to receive the Residential Solid Waste and.Recycling Study ( "Study ") and direct staff to negotiate a contract with HF &H Consultants, LLG, (Consultant) to develop a Request for Proposal (RFP) to solicit proposals from private companies for providing this service, and work with staff to generate ways that the CAy'sexisting system could be more efficient. The motion carried by the following roll call vote: Ayes: Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Councii Member Daigle Noes: Council Nl6mber.Hill Absent: Council Memher Rosansky 28. REVIEW AND APPROVE FIVE -YEAR TIDELANDS CAPITAL PLAN FOR NEWPORT HARBOR. [100 -2012] Harbor Resources Manager Miller presented discussed the background and previous consideration of the item by Council. He reported that the plan is a roadmap that will guide the City for the next five years, is not a budgeted item, and not written in stone. Mayor Gardner noted that water quality and habitat restoration can be addressed moving forward. Volume 60 - Page 659 City of Newport Beach City Council Minutes November 27, 2012 Discussion followed regarding providing flexibility in the budget for funding additional projects that may arise. Mayor Pro Tem Curry noted the costs of the Capital Plan and believed this is the first step toward the commitment. to make these types of improvements to keep the Harbor economically and environmentally ibrant. Council Member Henn commented positively on the proactive approach taken by the City. Motion by Council Member Selich, seconded by Mayor Pro Tern Curry to approve the Five - Year Tidelands Capital Plan as a guide for harbor projects in the coming years, recognizing that the Plan may change as needed each year upon subsequent reviews. The motion carried by the following roll call vote: Ayes: Council Member Hill, Mayor Pro Tem Curry, Mayor Gardner, ' Council Member Selich, Council Member Henn, Council Member Daigle Absent: Council Member Rosansky 29. APPROVE HARBOR COMMISSION OBJECTIVES FOR FY2012 -13. [100 -20121 Harbor Resources Manager Miller provided the staff report;, Motion by Mayor Pro Tem Curry, Seconded- by Council. Member Selich to approve the Harbor Commission's FY2012 -13 objectives. Harbor Commission Chair West thanked Council: -for the opportunity to review the objectives and its support of the item., " Council Member Henn encouraged the Commission to generate timelines and action calendars to help in meeting its objectives`io_recommend to Council. Council MefnberHillnommented positively"on -the Commission's efforts and achievements. Council Member Daigle, indicated Council's sincere desire to help wherever needed and emphasized that it would be helpful to ensure that relationships with agencies are effective. The motion carried by the following roll call vote: Ayes: Council Member Hill, Mayor Pro Tem Curry, 1VIayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Council Member'iRosansky 30. REQUEST TO CONSTRUCT NON - STANDARD PRIVATE IMPROVEMENTS WITHIN THE PUBLIC RIGHT -OF -WAY AT 1001 MARINERS DRIVE. [100 -20121 Public Works Director Webb provided a PowerPoint presentation to address the location of the subject property, the request to install a vinyl fence, and landscaping. He reported that the applicant forgot about the need for an encroachment permit and has already installed the fence. He presented existing conditions and the applicability of Council Policy L -6. Discussion followed regarding the height of the fence and the ability of the City to service the storm drain. Volume 60 - Page 660 City of Newport Beach City Council Minutes November 27, 2012 Motion by Council Member Selich, seconded by Council Member Hill to a) waive Council Policy L -6, "Private Encroachments in the Public Rights -of- Way," to allow a six -foot tall vinyl fence and appurtenances and planter walls of varying height up to 36 inches to encroach in excess of one foot into the existing storm drain easement, contingent upon all conditions of the Encroachment Permit process being met; and b) direct staff to enter into an Encroachment Agreement with The Cherry Family Trust, and authorize the City Manager and City Clerk to execute the Encroachment Agreement. The motion carried by the following roll call vote: Ayes: Council Member Hill, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich,_ Council Member Henn, Council Member Daigle Absent: Council Member Rosansky XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - 9:48 p.m. City Council Study Sessions and Regular Meetings will be held in the new City Council Chambers located at 100 Civic Center Drive, Newport Beach, beginning Tuesday, December 11, 2012. The agenda for the Regular Meeting was posted on November 21, 2012, at 3:45 p.m. on the City Hall Bulletin Board located outside of the.City of- Newport Beach Administration Building. Recording Secretary Mayor City Clerk Volume 60 - Page 661 r AM; I, City Council Minutes Special Meeting November 28, 2012 — 6:00 p.m. I. ROLL CALL - 6:00 p.m. Present: Council Member Hill, Council Member Rosansky, Mayor, Pro, Tem Curry, Mayor Gardner, Council Member Henn, Council Member Selich, Council: Member Daigle II. PLEDGE OF ALLEGIANCE - Council Member Henn III. NOTICE TO THE PUBLIC IV. PUBLIC COMMENTS - None V. CURRENT BUSINESS 1. RESIDENTIAL PIERS. 1100 -20121 Council Member Selich ,reported that because he owns a residential pier, the City Attorney has advised him to recuse himself from hearing this item Council Member Selich, therefore, recused himself and left the dais. City Manager Kiff provided a!PowerPoint presentation which summarized the topics to be covered, : o and discussed .the definition'f, tidelands, ownership by the State, responsibility of the City to maintain and manage, the tidelands, tidelands in Lower Newport Bay, County tidelands, State, County And City administration, areas and private waterways, the process for overseeing compliance with the Beacon Bay Bill,`the need`to charge fair market value, details about SB152, and California State Auditor Report No. 2010 - 125 by the State Lands Commission. City Manager Kiff addressed Council efforts to date, including the previous appraisal and adoption of mooring rates, and the most recent approval of the commercial marinas process. He presented information regarding how rents are set and related regulations, appraisals obtained and conclusions, a recent workshop, recommendations and applicability of the recommendations, and revised recommendations subsequent to the workshop. He addressed the proposed rent, phasing period, audits, and the. requirement for a new appraisal every five years. In addition, he addressed the current permit fees, allowing the ability to rent residential piers but at a rate that is commensurate with small commercial marina rates, terms included in the written permit, transferability, and examples through full phase -in. City Manager Kiff addressed the lease area recommended by the appraisers and examples of single and shared docks at various locations within the City. He presented details of the phase -in plan, excluded areas, and use of the Tidelands Management Fund pursuant to the Beacon Bay Bill. He noted that all related documents are available on the City's website. Mayor Gardner noted changes made to the recommendations subsequent to the workshop and reported that the Committee communicates daily with staff and continues to receive and consider Volume 60 - Page 662 City of Newport Beach City Council Special Meeting Minutes November 28, 2012 public input. She stated that additional changes will be recommended as the meeting proceeds. Council Member Henn stated that one of the issues of concern is the insurance requirement in conjunction with the indemnity, which may make the requirement expensive or unfeasible. He indicated that Council will need to consider that issue to possibly develop other feasible solutions such as a City - organized insurance plan that would cover both the City and dock owners. He suggested postponing the insurance requirement issue until Council has had the opportunity to study it carefully with the possibility of giving up the hold harmless provision with the alternative solution that is identified. Council Member Henn also clarified that substantive changes have been made from the original proposal and Council intends to continue receiving public comments and consider the impacts of the proposal. He suggested that, after receipt of public input, il-onsider adjourning the meeting to 4:00 p.m. on December 11, 2012 to continue Council discussion with the benefit of additional time to consider the suggestions being made. He suggested not making a final, decision until that time. Council Member Rosansky agreed, but suggested, scheduling a Special Meeting on December 10, rather than addressing the item during the Regular Meeting of December 11. Discussion followed regarding the availability of Council on December 10. It was concluded that Council should wait until after public comments are received before deciding on a date and time to schedule the continuance. Mayor Pro Tem Curry agreed with holding the'meeting at 4 :00 p.m. on December 11. He expressed concerns regarding the insurance provisions and expressed his 'interest in hearing public input on the matter. Mayor Gardner stated tbit one of her proposals is to leave the rent issue as it is. She highlighted the evening's public comment process and noted that, since public comments will be received at this time, it will not be taken that night at the Adjourned Special Meeting. She encouraged residents to comment at this time and communicate through1phone or email going forward. Council Member Henn noted that if the _meeting is adjourned to 4:00 p.m. on December 11, the meeting location will be at the new Council Chambers at 100 Civic Center Drive. Chet,Needleman noted that most people have one or two boats and that it does not seem right to charge,for a 10 -foot area on all four sides of the dock. He expressed support for the owners' ability to rent out the docks and stated that he would be willing to pay a higher rent to do so. Council Member Henn reported thatIthe City does not intend to charge for the back side of the dock. Seymour Beek addressed the existing permitting process and spoke in opposition to the item. He stated that in someplaces in the Harbor, piers were built above sand and water, but the public has access to them. He referenced the rental issue and noted that there is a parking problem that will be exacerbated by the rental of piers. Lawrence Leifer stated that he reviewed the appraisals performed by City contractors and questioned whether the current condition is a lease. He believed that since the appraisers did not have access to the permit information, they had no way of comparing their results to leases of other tideland areas and do not comply with standards. Danny Sullivan expressed disappointment that Council Member Selich cannot participate since he would act in the interest of people who own docks. He expressed concern regarding basing the fees on the size of the docks versus the number of boats using the dock. He suggested charging for the actual water space used noting that the market does not charge people for space they do not use. He addressed the absence of a long -term lease option, and questioned the calculation for the proposed Volume 60 - Page 663 City of Newport Beach City Council Special Meeting Minutes November 28, 2012 assessments and the process for abandoning docks. He encouraged Council to spend more time considering the issue and to simplify the formulas used on calculating the rental fees. Bill Kinney addressed the existence of a perpetual easement for pier and slip purposes. He disagreed with the statement in the staff report indicating that the easements may preclude rent, and noted that the easements were granted when the Promontory Bay was private property. Hugh Randolph indicated that he is representing various properties and voiced his opposition to the proposed assessments. He believed that Council must carefully consider the issue, especially related to parking problems that will increase by allowing private dock owners to rent out their docks. Chris Vatson stated that if the assessment is approved, she will be inclined to tear down her dock and noted that she has several friends and family members that'"will be doing the same. Devin Kelly expressed appreciation to Council for its effort's and continued to read the letter from a previous speaker, Mr. Liefer, regarding problems with the appraisals. She concluded by stating that she believes that the issue needs additional time to consider all the impacts. ., Andres McComnico stated that his canal is an open sewer caused by rotted sewer lines and that his property often floods with hazardous waste. He addressed his requirements as a landlord to provide a safe environment and believed that, if the City approves this project, it will become the landlord and will need to comply with the same standards. Jill Lindsey was advised that if private'propeity „extends to the waterways, the owner will not be charged. She expressed opposition to the matter. Walter Albercourse III spoke in opposition, believing that property values will decrease and spoke in support of allowing people to rent their docks. He believed that no one will underwrite the insurance and addressed the high costs involved. He took issue with including the 10 -feet around the docks in the calculations and urged Council not to rush the issue. He stated that you cannot charge for space in front of the docks and noted that CPI can get very expensive over time. Gale Rosensteiii'E,I)- ressed`disappointment that Council is considering allowing private dock owners to rent dock'space. Roger Petrels spoke in opposition to the item. Bud Readly, presented a picture of his neighbor's dock and noted that he would not have the ability to rent out-':his dock in its; ipresent condition. He stated that the City would be impacting his property if it` included a Bold harmless clause insurance requirement, and addressed possible litigation since cost -of- living increases should be made reasonable. He asked Council to make the issue fair and logical'., Mike Brewer spoke on-behalf of his parents who have a larger dock and are living on a fixed income. He spoke in opposition to the matter and believed that many people will remove their docks. Regarding Council Member Selich's recusal, City Attorney Harp explained that if there is any item under consideration that could cause a financial impact on any member of Council, the Council Member cannot participate in any deliberation or decision regarding the item. He clarified that these rules are established by the State of California. James Gardner asked if the public will be able to speak at the proposed December 11 meeting because of the need for additional information regarding insurance. He expressed concerns with the methodology used in the appraisals and requested additional information on the process. Volume 60 - Page 664 City of Newport Beach City Council Special Meeting Minutes November 28, 2012 Don Abrams thanked Council for its efforts, reported that he owns'two docks, and expressed concerns with the City's deteriorating infrastructure. He hoped that Council will be reasonable in its decision. Bob Coop questioned how enforcement will occur and addressed related increased expenses. He expressed concerns regarding decreased property values, impacts to residents, and the costs and availability of insurance to indemnify the City. Sara Abraham spoke in opposition to the rate calculations relative to the 10 -foot waterway around docks and also questioned how enforcement will occur. James Westlane objected to the 10 -foot boundary around docks in calculating the proposed rates. He indicated he would be willing to pay the extra fees if the City would dredge the area around the docks and asked that Council consider the square footage of the dock'atd ramp and 10 -feet out on the side as a basis for calculating the proposed fees. Kristine Thaggard, referencing written comments submitted on behalf of the Newport Beach Dock Owners' Association, expressed concerns with,' the process. She encouraged Council to take more time to consider this issue in order to understand,' all the issues. She believed that many of the issues can be addressed, noted that the matter of insurance is not workable, and presented a list of insurance companies that will not provide the type of,- insurance proposed. She addressed costs related to a general liability policy. She addressed SB 152, actions by neighboring cities, and the amount of taxes being assessed by the , C.ity' , S,he asked foi -;fin opportunity for owners to obtain , appraisals and that Council continue the `item `until after the'first of the year. She also believed that, if residents and the City work together, importauticsues will lie resolved, but indicated that 10 days is not enough time for due process. Council Member Daigle explained the process on the SB 152 vote and noted that the City's legislator opposed the matter. Bob Levin asked Council to.pay- attention to the comments provided. He reported that his neighbors have agreed to- keep-their lights off during',the Chamber of Commerce Boat Parade in protest of the item. Jim-Miller stated that he`,knows` people who are on fixed incomes that could lose their homes because of the proposed assessments: He expressed concerns with the appraisal process and presented examples of various properties that would not be comparable in terms of the rents they could charge; He suggestedlusing the State Lands Commission's benchmark for establishing rates. Domenica Crestacia discussed the condition of the area around her dock, addressed high property taxes, and expressed hope that the additional monies can be used to improve the area. She questioned the amount.,being paid for the new City Hall and whether that was put out for competitive bidding. She spoke in opposition to the project. Brian Harrington reported that he rents his residence and addressed the impacts of the proposed assessment to renters and homeowners. Jim Mosher commented on the fair market value requirement as it relates to gifts of public funds and the formation of the Ad Hoc Committee on Harbor Charges, as well as its termination. He stressed the importance of understanding the rules and about transparency, and referenced the City's Quarterly Business Report where it indicates that the Ad Hoc Committee on Harbor Charges is still an active committee. He wondered why the committee was never formally extended, who the members are, how they were selected, and whether there are quorum issues. Volume 60 - Page 665 City of Newport Beach City Council Special Meeting Minutes November 28, 2012 Tom Johnson referenced previous comments regarding a possible boycott of the Christmas Boat Parade and noted that if residents boycott the parade, they will be hurting restaurant owners, outlets that provide viewing points, catering companies, and tour boats on the Harbor, and not the City. Cathy Nesmon thanked those in the public who attended and expressed her concerns about the rental rates. Carol Seymour spoke in opposition to the matter and discussed her efforts to clean up the area. She believed that this should be a City -wide issue because of the extensive public use of the area, and not just the responsibility of a few residents. Mayor Gardner addressed contributions toward the maintenance of the Harbor by every resident through the use of the General Fund. City Manager Kiff addressed the issue of charging on all four sides of thEMock and confirmed that the proposal should reflect rental rates of usable.space which may change depending on the dock's location in the Harbor. He noted that sand underneath the docks would not be included in the permit area. He acknowledged receipt of Mr. Leifer'e letter and reported that it, along with the City's response, will be posted on the website. He clarified that the project is not a proposed lease agreement, but rather an annual pier ,permit similar to-the existing annual renewal process. He acknowledged the need for further review regarding perpetual easements and other issues by residences that are not related with the tidelands. City Manager Kiff reported that, if docks are over private property, the City will not charge rent, It will do'so only if the property is over City tidelands. He addressed the issue of a cap on the CI?I'and suggested that this may be something that Council should consider. He agreed that it will take 'a lot of staff time to set everyone up in the process but it will not involve new staffing, but rather refocusing of existing resources. He reported that the new Civic Center project was competitively bid. and Listed the various projects that were included in the overall cost. City Attorney Harp indicated: that the City Attorney's Office has not been provided with a copy of the easement agreement and, requested: one for review. He addressed SB 152, noting that the fair market requi ements' related; to the bill are for State lands and does not apply to City lands. Regarding the issue of gifts of public funds, he pointed out that the City is managing State tidelands and. that there is a requirement'to, receive fair market value for the rental of that property. He noted, that Council Member Selich has not participated in the committee meetings and has been consistent in recusing himself. He emphasized that no Brown Act violations have occurred. Council Meni er Henn believed that the appraisers should be asked about the issue regarding the lack of availability of a form, permit or lease, and whether or not that invalidates the appraisal and should be cause for reconsideration. He addressed the issue of charging for the space that is used and stated that, since > the pier and float provide use and access by the public to the tidelands, it would not be appropriate to charge just for the space a boat uses. He noted that when you build something over land owned by someone else, you run the risk of forfeiting the improvement if you fail to keep it. He addressed the issue of changing responsibilities for the City in its capacity as a landlord. City Attorney Harp confirmed that the City does not accrue additional responsibilities or costs by increasing pier rents. Council Member Henn commented on the issue of insurance and noted that home liability insurance coverage extends to the related dock. He noted that the difficulty is with the City's proposal for a "hold harmless" clause in conjunction with the regular insurance. He agreed that the indemnity issue is one of the issues that will need further consideration by the City. He stated that the issue will disappear if the requirement is removed by the City. He addressed the issue of allowing rentals, noting that business and marina owners in the Harbor have recently undergone the same Volume 60 - Page 666 City of Newport Beach City Council Special Meeting Minutes November 28, 2012 process as tonight. He indicated that it is riot fair for residential dock owners to be able to use a public asset for little or no cost, rent it'out, and not expect a homeowner to not pay a fair rate. He addressed fairness to other Harbor users and the costs they incur. City Manager Kiff noted that the recent Harbor dredging was partially funded by Federal money and that the City has been aggressive in securing additional funds and grants to pay for necessary projects. Council Member Henn commented on the City's attempt at being fair and the importance of getting the right perspective on everything that is occurring in the Harbor. He addressed the piers in the Grand Canal and the need to research the matter further, and addressed efforts by the Tidelands Management Committee to develop a structure that will secure increases in revenue to be spent in a way that will assure they are spent on improvements in the Harbor. He commented on the recommendations of the appraisers and the Committee's modification of the recommendations to only include usable areas along the docks. He pointed out that this was a substantial downward modification of costs from what was recommended by the appraisers. Mayor Gardner believed that residential piers should not be rented and acknowledged the validity of related parking issues. She expressed support of a,CPI,;not to exceed a predetermined amount. City Manager Kiff suggested that Council conduct straw votes to include or not include consideration of various issues. _- Mayor Pro Tem Curry acknowledged the'validity of comments:regarding the insurance issue and the impacts of indemnification provisions. He believed this should be separated from the matter and that people should have the right to rent their docks to recuperate some of the costs. He agreed with a cap to the CPI. He addressed the 10 -foot issue and requested reconsideration of the definition so that people pay for what they are using. He noted recent actions to improve the Harbor and noted that revenue is generated from a lot of other people in support of the Harbor activities. Council Member Daigle indicated that she can- support certain issues, and addressed the rental rates and SB 152. She discusso the differences'in appraisal processes and believed that the burden is on the State of California to disprove the City's numbers. She also questioned whether there were other methods for setting fee's. Council Member Rosansky commented on the need to be fair; however, opposed placing a cap on CPI since no caps were set for the other users. Council Member Henn indicated agreement with Council Member Rosansky's comments. City Attorney,Harp noted that Council is free to set the fair market value based on the appraisal and can consider other information. Council Member Hill commented on his original intentions to vote on the item, but indicated that he was persuaded by some of the public comments tonight. He believed that he would look at raising the rates over a five -year period to the fair market value, but proposed a CPI cap no greater than 2 %. Council Member Daigle agreed to a cap of 2 %. Council Member Henn addressed the issue of allowing rental of private docks and; if allowed, suggested requiring that rental rates be based on those charged by small commercial marinas. Council Member Rosansky noted that people are renting their docks anyways, indicated he would favor considering the issue, and addressed possible scenarios for people who rent their residences. City Manager Kiff noted that staff will propose that rental of private docks be allowed at the small Volume 60 - Page 667 City of Newport Beach City Council Special Meeting Minutes November 28, 2012 commercial marina rate. Council Member Henn recommended postponing the insurance issue until March 2013 in order to have time to evaluate the issue and its feasibility. Council Member Hill addressed current charges and wondered if the insurance issue has been a problem. City Manager Kiff noted. that staff has been making an effort to improve past practices which have not adequately protected the City and its taxpayers. He stated the importance of addressing the requirement that the permittee have insurance. Mayor Pro Tern Curry believed that the indemnification will not work and agreed with Council Member Henn's suggestion to postpone the issue until no later than March 2013. Regarding the issue of usable dock space, City Manager Kiff believed 'that, if there is the ability to place a boat at the dock, the space should be included in the permit area. He clarified that staff continues to propose calculating with the dock and the useable sliace around it. Mayor Gardner suggested the possibility of getting an inspector on board to inspect existing docks. Regarding the appeals process, it was concluded that staff will propose the, proper process at a future Council meeting. Special Meeting to an Adjourned Special Meeting a Council Chambers located at 100 Civic Center Drive. VI. ADJOURNMENT - 9:30 p.m. le by Mayor Pro Tern Curry to adjourn the 4:00 p.m. on December 11, 2012, in the new ., The agenda for the Special Meeting was posted on November 21, 2012, at 3:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 60 - Page 668 City Council Minutes Special Meeting December 11, 2012 — 4:00 p.m. I. ROLL CALL - 3:30 p.m. II. NOTICE TO THE PUBLIC III. PUBLIC COMMENTS - None IV. CLOSED SESSION - 3:30 p.m. A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives:. Dave Kiff, City Manager and Terri Cassidy, Deputy City Manager /Human Resources Director; Negotiators. Employee Organizations: All Labor Associations; Association of Newport Beach Ocean Lifeguards. (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (LABEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport Beach Part Time Unit (UPEC, Local 777); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); New ort Beach Professional and Technical Association (NBPTEA) V. RECESS VI. RECONVENED AT 4:00 P.M. FOR SPECIAL MEETING VII. ROLL CALL ' Present: Council Member Hill, 'Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle VIII. CLOSED SESSION REPORT - City Attorney Harp reported that there were no reportable actions taken IX. CURRENT BUSINESS 1. RESIDENTIAL PIERS. [100 -2012] Council Member Selich reported that because he owns a residential pier, the City Attorney has advised him to recuse himself from hearing this item. Council Member Selich, therefore, recused himself and left the dais. Volume 60 - Page 669 City of Newport Beach City Council Special Meeting Minutes December 11, 2012 City Manager Kiff provided a PowerPoint presentation to summarize the issues and highlight changes made since the last meeting. He stated that adjustments are occurring throughout the State and confirmed that the revenue will be for tidelands uses only. He presented revised recommendations and addressed the phasing period for the proposed increases. He addressed an appeals process, requirement for insurance without an indemnification clause for the City, and actions taken by Council that will result in lowering the rents. He presented examples of residential piers and incorporated the revised recommendations and addressed unique properties and situations. He presented decision points for consideration by Council and addressed implementation issues. In response to Council Member Henn's questions regarding insurance, Human Resources/Risk Management Administrator Farley reported that there are two - available markets and that the available coverage would be only for the City, not individual dockrowners. She confirmed that there is no product currently available to protect both the City and the dock - owners and believed that this is not feasible at this time. Council Member Henn suggested proceedfng,with the recommendation to require liability insurance coverage and not require a-minimum amount.., Council Member Daigle expressed concerns that if-a dock owner does not comply with the insurance requirement that their permit could be revoked! Staff noted there is an established process in Title 17 on dock revocation and indicated that they wilt work with the dock owners if situations arise. In response to Council Member Daigle:s, inquiry regarding additional administrative costs for the City, City Manager Riff reported that, if 'needed, the City could hire temporary staff to help but believed that the City's GIS team has been determining squarefootage. Council Member Daigle addressed comments that previous Council has been negligent in raising the fees and indicated that she spoke with past Council Members that indicated that at the time, the tidelands did not allow for rent or a tax, and'thehest the City could do was to assess an inspection fee. City Attorney Harp clarified that the Beacon Bay Bill has always allowed for the ability to charge rent. In response to Council Member Daigle's question, City Manager Kiff reported that the original Harbor Charges Commitiee consisted of Council Members Henn, Rosansky and Selich, and discussed, their responsibilities. He noted that the committee sunsetted and a.working group has been looking at the issues_ as individual Council Members, but it is not a formal committee and not subject to the Brown Act. Bill Kinney, indicated that he reviewed the staff report, but did not have an opportunity to review City Manager Kiff's remarks. He referenced Resolution No. 2012 -120 regarding exclusion of waterways arid, I improvements owned by the permitee, and asked if the waterways at Promontory Bay are City -owned or City- administered. Regarding private waterways, he suggested changing the resolution from "excluding,}rivate waterways and improvements owned by the permitee or tidelands subject to recorded easements for pier and slip purposes" to "privately -owned lands or submerged lands subject to a recorded easement ". He thanked City Manager Kiff for attending the Promontory Bay Community Association meeting. City Attorney Harp indicated that those changes would be acceptable. Joanne Harrold agreed that Council must follow the law in terms of the procedures it must follow, but that the law does not provide how the square footage is to be determined. She disagreed with how that determination is being calculated and noted that there are many docks that have no boats on the floats. Danny Sullivan believed that there needs to be additional discussion on this matter and suggested that the City hold another public workshop since there is no need to rush the project. He referenced Volume 60 - Page 670 City of Newport Beach City Council Special Meeting Minutes December 11, 2012 SB 152 and noted that the Senator's office who authored the bill informed him that it is not applicable to the City of Newport Beach. He requested that all pier owners be notified regarding the workshop and provide individual pier owners of their estimated charges. He believed that Council Member Rosansky should not vote on the issue given that he will no longer be on Council. He addressed the property tax situation, fair market value, and other options for possible consideration. He asked for a fair and simplified system, and reiterated his request for an additional workshop. Kristine Thagard, representing Stop the Dock Tax, focused on the property rights of owners and requested additional time to review the proposals and make recommendations to arrive at a mutually, agreeable consensus. She noted the group's intention to.'boycott the Boat Parade and noted that they are peacefully protesting the process and simply -- request additional time to explore the issues at hand. She asked that the City recognize their vested, rights, addressed consequences for non - compliance, and stated that she believed that this is,a taking which goes against the State Constitution. She stated that SB 152 is not applicable to' Newport Beach and noted that it is a vested right of a homeowner to have the pier and be able to pass it along,to, the next homeowner. She addressed added property values of docks and lost. equity by the passing of the subject resolution. 'She reiterated the request to allow. more time to consider the proposals and review alternatives, and referenced a proposal generated by -,Stop the Dock Tax. She added that she believes that the new fee is in violation of Propositioir 26 in terms of requiring approval by a two - thirds vote. She addressed CEQA, Brown Act, and Constitutional issues and believed that it is not in the City's best interest to rush this. Steve Baric, representing the Newport B'each,Dock Owners Association, expressed concerns' over potential violations of the Brown Act anti, the rights of the pubic to be informed and heard on actions such as this. He referenced the committee's recoil imendations and addressed the levels of proposed increases. He asserted that the committee became a standing committee and believed that it is subject to the Brown. Act. He expressed the opinion that since the committee, consisting of-the same members as the sunsetted committee continued to meet, it was subject to the Brown Act. He addressed the importiince of the public being aware of all the deliberative processes that went into forming the current 'recommendations and requ sted that Council consider this item upon further review and input from the'''pubbi; and.,,allow for additional input and provide information of all the processes that'ivere followed: Pete Paliette requested that Council consider postponing its vote on this topic until reasonable solutions can be reached. He took issue with the magnitude of the proposed fees. He expressed opposition to the matter and requested continued review. He offered suggestions for Council to consider in developing a solution, encouraged everyone to work together, and requested that Council consider reconciliation and developing solutions. John Hedlund expressed opposition to the proposed boycott of the Boat Parade, adding that it does not accomplish anything. He spoke in opposition to the proposed fees and addressed improvements he has made to his dock and noted additional property taxes paid because the valuation of his property included his dock. He suggested that Council seek a less discriminating method of raising additional revenue. Gary Sherwin, President of Visit Newport Beach, Inc. (VNB), commented on how the Christmas Boat Parade brings everyone together and stated that it does not make sense to penalize people who have not had a role in this issue by boycotting it. He addressed participation commitments received and listed actions taken by VNB to promote the Boat Parade. Frank Singer, representing approximately 4,000 homeowners in Huntington Harbor who are facing a similar situation, presented testimony on his participation in the City of Huntington Beach process and noted that the fees they pay go into the General Fund. He addressed SB 152 and Volume 60 - Page 671 City of Newport Beach City Council Special Meeting Minutes December 11, 2012 believed that this is a'tax and should have required a two - thirds majority vote. He stated that insurance should not be an issue. Andrew Mozeleski, District Representative with Senator Mimi Walters' Office, read a letter from Senator'Walters into the record highlighting that since the docks in Newport Beach are privately owned, they are private property and that placing additional assessment burdens on homeowners will make it more difficult for them to sell their homes and would depress property values further. The letter addressed unintended consequences, like boycotting the Boat Parade, and stated that she will direct her staff to introduce legislation in order to clarify the rights of property owners with residential piers. She requested that Council table the issue until January to allow for more public input and forge a reasonable solution. Hugh Randolph commented on exemptions to Harbor Island rind Linda Isle while none has been granted to Newport Island, which has less access and is smaller. 'He commented on the calculation of square footage and believed that charges should be for the dock itself; Chet Needleman noted that many people have docks;` but do not have boats:,_ He spoke in favor of allowing dock owners to rent out their docks; however, questioned how the City ^could rent property and then charge a permit fee on the rented property. <' He requested to view a'budget line item to reveal how much money is raised from this process and footnote the statement to break out the income and expense so that dock owners can see where their money is going. He requested that Council postpone the item. Bobby McCracken, Student Council President at Ensign Intermediate School, spoke in opposition to the proposed fees and expressed concerns over the effects on residents, local businesses and tourism, and the Harbor. He stated that the City is. in a good fiscal position and wondered why the additional fees are needed. Tom Larkin spoke in opposition to the proposed fee increases and noted that many of the area residents are on fixed incomes; He also indicated that it was likely that litigation over this matter would ensue. Curt English, President of the Newport-Beach, Republican Assembly, addressed the current political environment "and suggested that the City consider cutting spending rather than raise fees. He offered to help the Cit} irr its attempts at cutting spending. He thanked the residents who decorate their houses and boats during the holiday season. Douglas Wood expressed disappointment with Council and believed that there are many issues that are left unanswered. He asked that Council allow additional time for consideration of those issues. He listed items that are yet to be determined, including insurance, the appraisal process, and consideration of''cvhat other cities are doing. He encouraged Council to develop solutions in conjunction with residents. Bud Reveley addressed inequities in the plan as it relates to Newport Island and requested additional time for developing reasonable alternatives. He suggested forming a working committee to generate ideas and solutions. Dan Mariscol believed that the proposed pier rental rates are unfair for small docks when compared with small marina piers. He noted that many dock owners allow their friends to use their docks at no charge and wondered how that situation would be addressed. He added that the size of the dock is not the best reflection for the fee since some docks have been made smaller in order to allow for the docking of larger boats. He suggested considering a flat rate for all of the piers. Roger McGregor spoke in opposition to the project because of the effect it will have on his yacht Volume 60 - Page 672 City of Newport Beach City Council Special Meeting Minutes December 11, 2012 manufacturing business. He believed there is almost no evidence that the State is pushing the City to raise fees on residential piers. He noted the power of the people and addressed the Boat Parade boycott. Walter Albercourse urged Council to continue the item and indicated support for the Stop the Dock Tax group. Jamie Woodworth provided information regarding his docks and multiple moorings, and addressed payments of property taxes and other taxes being assessed. He spoke in opposition to the proposed fee increases, indicated support for the Parade, and asked that Council take its time in considering this item. Dennis Lecio believed that raising taxes is not mandated by SB 152,and addressed the purpose and provisions of the bill. He spoke in opposition to the proposed assessment and encouraged Council to work in conjunction with residents. Unidentified Speaker asked Council to make its decision ,transparent, consider public input, and make the decision based on the Golden Rule. She asked'ihat Council take its time in considering the matter. Jim Miller believed that Council is making a mistake on this issue and expressed concerns regarding the various dock sizes and conditions since they, are not all equal. He spoke in support of the Boat Parade boycott. Mike Brant - Zawadski encouraged Council to take its time to carefully consider the matter to develop an amicable process that includes stakeholders. Brian Harrington reported that he rents his house that includes a dock and spoke in opposition to the proposed assessments. He asked that Council take its time in considering the issue as it relates to renters. City Attorney Harp agreed that °SB 152 is not applicable to the City, but requires the State Lands Commission to charge fair market value for residential piers on State tidelands. He pointed out that what is relevant is that the State is expressing the same concept of charging fair market value to rented land upon which residential piers are located and SB 152 is being considered in that context. He stated that the proposal being considered is not a tax, but rather rent for the use of tidelands that are not owned by adjacent property owners. He indicated that a littoral right is a legal theory which protects property owners from having access to the water impaired by an adjacent property owner. He referenced a previous case, noting that it does not apply to tidelands, but to other adjacent property owners. City Attorney Hawaddressed the idea of vested rights and noted that it is not the case because the docks are situated on tidelands so there are no vested rights in that area. Regarding Brown Act issues, he reported that the Ad Hoc Committee on Harbor Charges was comprised of Council Members Henn, Selich and Rosansky via Resolution 2010 -95 to review commercial piers and moorings and had no charge to review residential piers. He reported that the committee sunsetted on March 31, 2011. The working group was not subject to the Brown Act and does not have the same membership since it included Mayor Gardner and Council Members Henn and Rosansky. It was formed organically, not through official action of Council, it was composed of less than a quorum of Council, is not a standing committee, does not have subject matter jurisdiction, and its meeting schedule is not fixed by Charter Ordinance. Therefore, it does not meet any of the rules for the definition of a Brown Act committee. Regarding condemnation and takings, City Attorney Harp stated that there is no right to use the land and that the institution of rent for the use of the land is not a taking. Regarding CEQ,A, he Volume 60 - Page 673 City of Newport Beach City Council Special Meeting Minutes December 11, 2012 added that the adoption of a permit and setting of rent is not a project under CEQA and nothing new is being proposed. He addressed authorization for dock owners to rent their docks while charging the same rate as smaller marinas in the City and that sub - letting is allowed in the Municipal Code. Regarding Harbor Island, City Manager Kiff noted that it is surrounded by County tidelands. He addressed the valuation relative to Newport Island and reported that both appraisers indicated that the square foot value should be the same as Harbor Island. He defined the back side of the dock and addressed suggestions for cutting spending and listed actions taken by the City to do so. Regarding appeals fee costs, he noted that it needs to be set at low enough amounts so that it is not a detriment to the appellant but at a high enough amount that it covers the cost of the appeal. In response to Mayor Gardner's inquiry regarding long -term leases, City Attorney Harp stated that there is no issue in entering into a long -term lease if that is Council's pleasure. Mayor Gardner clarified that there is no intent to charge a permit fee and rent at the same time. She indicated that there is consideration of removing properties on County land entirely and addressed usable land relative to tide levels. Harbor Resources Manager Miller reported that the City will not charge for the back end of the pier because generally the sides and front are usable by almost everyone in the Harbor. He further addressed the "pre-appeal" process. Mayor Gardner brought up the idea of a user fee for kayakers. and paddle boarders. She noted that comments in support of the issue are being received from many'City residents and that the issue is not one - sided. She indicated that Council "Members' minds have not been made up, but she has been put in an extremely difficult position since some members of the public have brought up the threat of litigation and boycotting. the Christmas Boat Parade. Mayor Pro Tem Cura'p noted that this item has been discussed extensively and that there has been a lot of negotiation and change from what was Soriginally proposed. He addressed reductions as a result of the negotiations , and -indicated that lie would not support any insurance or indemnity requirements. He emphasized that thiS is a fee, not a tax. He addressed inclusion of language that provides definition regarding private water for places that are exempt, spending the money for improvements in the �Harbor, `and adjustment of fees during the course of the negotiations. He stated that the legislature, has said. that it is public water and believed that the fees are modest compared to the value provided. Council Member Daigle questioned the applicability of SB 152 to the City. City Attorney Harp addressed the requirements-of the Beacon Bay Bill to manage tidelands consistent with property and that SB 152 'Will also look into charging for residential piers for the use of State lands. Council Member Daigle. reiterated conversations with previous Council Members and expressed appreciation for representation from Senator Walters' Office. Council Member Hill noted this is the leasing of land for private use and that misinformation is being distributed. He believed that the proposed fees are not that significant. He asserted reasons why previous Councils may not have wanted to address the matter and commented on the phasing - in period. He believed that this has to be done and is the right thing to do, adding that the ratio of opposition to support has been running 1 -to -1. Council Member Hill questioned how West Newport Beach could be treated the same as the rest of the Harbor due to its limited boat access and unequal location and functionality. He addressed the matter of escalation and distinguished between rent rates being raised for commercial piers by use of a CPI versus use of a CPI adjuster for residential piers. He addressed Proposition 13 and the Volume 60 - Page 674 City of Newport Beach City Council Special Meeting Minutes December 11, 2012 need to model after it. He believed that the City has a fair market value responsibility and noted that there would not be an escalation of that number but rather moving towards that number' during the phasing -in period. He supported establishing a fair market value, moving to that value in five years, and mirroring Proposition 13 at a CPI not to exceed 2% from that point forward with no additional appraisal unless the property is sold. Council Member Henn indicated that he has received a great deal of emails on the issue and stated that he has read and considered each one. He acknowledged the comments received and noted that he has also considered all of the comments. He reported that it has been at least 23 years since this issue has been considered and that there have been huge changes:in property values over that period of time. He addressed benefits to the property owner due to the inaction and stated that this is a valid public input process. He noted the positive changes made after the original proposal was considered and addressed the calculation of the fees and the need 'to operate on the basis of rational and objective input through the process of obtaining independent'appraisals. He emphasized that Council has thoroughly studied this issue over the last two years. He noted that other residents who do not live on the water pay taxes and that the General Fund subsidizes improvements to the Harbor. He noted the need to maintain a balance-and reiterated that the money raised by this assessment will be spent on Harbor improvements.' He addressed.open items remaining, including the appeals process. Council Member Hill addressed CPI adjustments during the phase -in period to fair market value and the need to determine adjustments at a future tinier, Council Member Henn believed that this is not a fair approach relative to commercial marinas and that residential piers should not be exempted. Council Member Rosansky indicated that he is willing to accept doing away with the 2% while the new fee is phased -in. He noted that Proposition 13 is a tax and that the proposed fee is a mandate by the State to charge a fair market rent. He stated the need for a mechanism to reassess the fees on a regular basis after the five -year phase -ir period. - Mayor Pro Tem Curry-suggested adding that. beginning in 2017, the fees will be adjusted by no more than 2% unless Council decides to go through an appraisal process at that time. Council Member Hill agreed that: this is not a tax, but rather the leasing of land, and that the goal of Proposition 13 was not to levy a tax but to-protect people who are on fixed incomes so that, as their property is.reassessed :'they would not be hit with exorbitant taxes. He spoke in support of a 2% CPI increase every year after the five -year phase -in period and adjustment at time of sale. Discussion followed regarding the ability by future Councils to reconsider the issue and not having to consider the item every five years. Mayor Pro Tern Curry believed that it is impractical to think there will be a process that creates an automatic increase in 2017 beyond a 2% threshold limit without there being a significant community response. He stated that this approach allows the fees to rise by 2 % after the five -year phase -in, as property values are assessed pursuant to the Proposition 13 formula, and there is nothing to prevent future Councils from directing further appraisals to be conducted. Discussion followed regarding not assessing the 2% adjustment during phase -in and subsequently assessing the 2% or CPI, whichever is lower, unless Council at that time decides to go through an appraisal process. A straw vote resulted in a 4 -2 (Council Members Henn and Daigle - no) support of the aforementioned matter. City Manager Kiff reported that commercial marinas are set for re- appraisals in 2018. ' Council Member Henn indicated that he would support a requirement that residential piers be Volume 60 - Page 675 City of Newport Beach City Council Special Meeting Minutes December 11, 2012 included in that appraisal process at that time. Mayor Pro Tem Curry wondered whether mandating another Council to act is valid. Council Member Henn stated that he is suggesting that residential piers go through the appraisal process again in 2018 when commercial marinas go through it. He noted that future Councils have the option of taking different actions. Council Member Hill stated that he would not have a problem with conducting an appraisal that would be applied to both commercial marinas and residential piers if the property is sold. A straw vote resulted in a 3 -3 (Council Members Rosansky, Henn and Daigle - no) show of support to remove the appraisal language. Discussion followed regarding the insurance requirement with no set amount and no indemnification of the City, and the matter of finalizing the appeals process. Council Member Rosansky stated that he would not object to acting on the matter prior to determining the appeals process. City Manager Kiff indicated that staff ,will work on the appeals process after the first of the year. Discussion followed regarding the issue of allowing rental of docks. Mayor Pro Tem Curry believed that people should be allowed to rent their docks at the small marina index rate and the City should evaluate unique situations. Council Member Rosansky and Council Member Henn supported Mayor Pro Tem _Curry's suggestions. Council Member Hill expressed concern regarding renting docks and related'-larking issues. ` Discussion followed regarding charges for the Newport Island docks- Council Member Hill believed that access and functionality are not the same on Newport Island as other islands and shout& not be, treated the same. Council Member Rosansky noted the appraisers considered the issue and found no significant differences in the rental rates. Assistant City Attorney,Torres indicated that, from the discussions today, the motion would also include a change to the permit "to'excl'ude easements from the definition of premises; the adjustment by CPI or,2% -would be- remo,�;vd during the ' phase -in period; beginning in 2018, future adjustments would be-limited by 2%, by CPl, ;whichever is less; and the renting of piers will be allowed at the small commercial marina -rate of $1126 as phased -in. Council Member Henn indicated that. he will make the motion with the understanding that the motion also includes a market -wide appraisal every five years on residential piers to be used as a reference point for the market value adjustment upon the sale of the property. Motion by Council Member Henn, seconded by Council Member Rosansky to a) adopt amended Resolution'.' No,`2012 -119 approving a model permit template for residential piers and excluding easements fiom the definition of premises; b) adopt amended Resolution No. 2012 -120 setting fair market value rent for residential piers, removing the adjustment by CPI or 2% during the phase -in period, future adjustments beginning in 2018 would be limited by 2% or CPI, whichever is less, and the renting of piers will be allowed at the small commercial marina rate of $1.26 as phased -in; and c) direct staff to prepare an ordinance amending the Newport Beach Municipal Code ( "NBMC ") to allow for the charging of fair market value rent as well as to remove the current prohibition against rentals of residential piers. Discussion followed regarding the possibility of including an appraisal upon sale of the property that would be used to adjust the pier rent at time of sale of the upland property, similar to Proposition 13. City Manager Kiff stated that staff is struggling with establishing that process. Mayor Gardner suggested amending the motion to indicate that if there is a residential appraisal, that it be part of Volume 60 - Page 676 City of Newport Beach City Council Special Meeting Minutes December 11, 2012 an overall Harbor appraisal and be used at the time of a property sale to adjust rent to market. Council Members Henn and Rosansky agreed to the amendment. Amended motion by Council Member Henn, seconded by Council Member Rosansky to a) adopt amended Resolution No. 2012 -119 approving a model permit template for residential piers and excluding easements from the definition of premises; b) adopt amended Resolution No. 2012 -120 setting fair market value rent for residential piers; removing the adjustment by CPI or 2% during the phase -in period; limiting future adjustments beginning in 2018 by 2% or CPI, whichever is less, except that upon sale of the adjacent upland property, the pier rent we be adjusted to market using the most recent Harbor -wide appraisal as a reference; the renting of piers will be allowed at the small commercial marina rate of $1.26 as phased -in; and that a residential pier appraisal be included in any overall Harbor appraisal; and c) direct staff to prepare an ordinance amending the Newport Beach Municipal Code ( "NBMC") to allow for the charging, of fair market value rent as well as to remove the current prohibition against rentals of residential piers.. The amended motion carried by the following roll call vote- Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Cur'r Mayor Gardner, Council Member Selich, Council Member Henn ' Noes: Council Member Daigle X. ADJOURNMENT - 6:32 p.m. Mayor Gardner announced that the Regular Meeting at the' new City Hall located at 100 Civic Center Drive will begin at 7:00 p.m. The agenda for the Special Meeting was posted on November 21,`2012, at 3:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 60 - Page 677 City Council Minutes Regular Meeting December 11, 2012 — 7:00 p.m. I. STUDY SESSION - Cancelled II. CONVENED AT 7:00 P.M. FOR REGULAR MEETING III. ROLL CALL Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Ciu %ry, Mayor Gardner, Council Member Selich, Council Member Henn; Council Member Daigle IV. PLEDGE OF ALLEGIANCE -Council Member Rosansky V. INVOCATION -Reverend Peter D. Haynes Saint Michael and All Angels Episcopal Church VI. PRESENTATION Presentation of Gifts to Outgoing Council Member Steve Rosansky and Remarks by Outgoing Council Member Steve Rosansky Mayor Gardner presented outgoing Council 'Member Rosansky with a Certificate of Special Recognition from Congressman-John Campbell's Office. Council Member Rosansky thanked his wife and family for their love, patience, support and sacrifice his friends, City staff, and colleagues who have all contributed to his success. He thanked the residents for allowing,,him to serve, noting that service is a privilege, not a right, and stated what. 'it has meant to him to make, a difference in the City. He listed challenges faced and accomplishments made during his tenure and that his goal has been to leave the City better than he found it, and noted that achievements have been accomplished through collaboration and teamwork. Mayor Gardner and Members of Council commended Council Member Rosansky for his service, dedication, leadership and contributions, and wished him well in his future endeavors. Mayor Gardner acknowledged the attendance of outgoing City of Irvine Mayor Sukhee Kang. City Manager Kiff commented on Council Member Rosansky's accomplishments, leadership and generosity. He wished him well on behalf of City staff. VII. NOTICE TO THE PUBLIC VIII. CONSENT CALENDAR A. CONTRACTS AND AGREEMENTS Volume 60 - Page 678 City of Newport Beach City Council Minutes December 11, 2012 1. PROPOSED DONATION OF PLAYGROUND EQUIPMENT FOR A TOT LOT BY THE BALBOA PENINSULA POINT ASSOCIATION - APPROVAL OF ENCROACHMENT AND MAINTENANCE/REPAIR REIMBURSEMENT AGREEMENTS (C- 5300). [381100- 2012). a) Waive Council Policy L -6, Private Encroachments in the Public Rights -of- Way, to allow non - standard improvements within the East Balboa Boulevard and Miramar Drive public rights -of -way; b) waive Council Policy B -17, Parks, Facilities, and Recreations Program Donations, to allow City Council to accept the donation of public amenities and to allow a donation plaque to exceed the recommended size; c) enter into an Encroachment Agreement and Maintenance /Repair Reimbursement Agreement with the Balboa Point Association, contingent upon all conditions of the Encroachment Permit process being met, and authorize the City Manager and City Clerk to execute-the Agreements; and d) waive all associated Encroachment Permit fees. B. MISCELLANEOUS 2. AMBULANCE TRANSPORT COT REPLACEMENT PURCHASE. [100 -20121 a) Approve the purchase of three Stryker Power -Pro XT Model 6506 battery powered ambulance transport cots for use in Paramedic ambulances for an amount not to exceed, $42,192.39: and b) authorize Budget Amendment No. 13BA- 024 -to, transfer $$42,192.39 from the General Fund Paramedic Reserve account 010 -3732 to Fire Eb1S_ account 2340 -9300 to fund the purchase (per Council Reserve Police F -2,, the, excess revenue4- _collected from the Paramedic Program are to be used for paramedic related purposes as directed -by the City Council). Motion by Mayor Pro Tem Curry, seconded by CouncA'M'ember Rosansky to approve the Consent Calendar. The motion carried by the following roll call vote: Ayes: Council Member Hill,, `,Council:Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council' Glember Henn, Council Member Daigle DX. ITEMS REMOVED-FROM THE CONSENT CALENDAR -None X. PUBLIC HEARING 1 3. UPTOWN" NEWPORT PROJECT - NOTICE OF INTENT TO OVERRIDE THE AIRPORT LAND USE, , COMMISSION'S DETERMINATION OF INCONSISTENCY - 4311 -4321 JAMBOREE ROAD. [100- '2012] Community Development'Director Brandt introduced the item and noted that staff is recommending continuing this public hearing until the January 8, 2013 Council meeting because the Planning Commission has not yet completed its deliberations and continued its public hearing until December 20, 2012 at 1:30 p.m. Mayor Gardner opened the public hearing. Hearing no testimony, she closed the public hearing. Motion by Mayor Pro Tem Curry, seconded by Council Member Rosanskv to continue the item to the January 8, 2012 City Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Volume 60 - Page 679 City of Newport Beach City Council Minutes December 11, 2012 Council Member Selich, Council Member Henn, Council Member Daigle XI. PUBLIC COMMENTS Ron Winship commented positively on the new Council Chambers and listed the names of people who have contributed to the City over the years. He presented a brief history of the City and congratulated Council for its efforts and work. Jerry Wheeler presented testimony regarding receiving a parking ticket. He took issue with the amount of the ticket and asked that Council consider relooking at parking ticket fees in the future. Philip Bettencourt commented positively on the new facility and commended staff and everyone involved in the project for their work. He thanked Council for supporting the.Chiistmas Boat Parade and expressed hope for the days ahead. Craig Batley encouraged the public to participate in the Boat-Parade this year. Council Member Henri encouraged everyone to attend and enjoy,the Boat Parade. XII. REORGANIZATION 4. CERTIFICATION OF GENERAL MUNICIPAL ELECTION RESULTS. [331100 -2012] City Clerk Brown read the title for Resolution -No.- 2012 - 122 °declaring the results of the General Municipal Election held on November 6, 2012. Motion by Council Members Hill, seconded by Mayor Pro Tem Curry to adopt Resolution No. 2012 -122, as amended, declaring the results of the General Municipal Election held on November 6, 2012. The motion carried by the following roll call vote .', Ayes: Couneil.Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich;'Council Member Henn, Council Member Daigle ADMINISTRATION OF OATH OF'OFFICE. City Clerk Brown called newly re- elected Council Members Keith Curry and Ed Selich, and elected Council Member Tony Petros forward. She then administerd the Oath of Office prescribed by the State Constitution to elected officials and presented a Certificate of Election to each Council Member. The newly re- elected and elected Council Members were seated at the Council dais. 6. ELECTION OF MAYOR. City Clerk Brown, in presiding, placed all members of the City Council on an equal basis to nominate and elect. Council Member Hill nominated Council Member Curry for Mayor. Interested parties were invited to address Council. Ron Winship thanked Council Member Curry for answering his emails and expressed support of Volume 60 - Page 680 City of Newport Beach City Council Minutes December 11, 2012 Keith Curry for Mayor. There being no others wishing to address Council, public comments were closed. Motion by Council Member Gardner to close the nominations. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Petros, Council Member Gardner, Council Member Curry, Council Member Selich, Council Member Henn, Council Member Daigle Without objection, Council Member Curry was selected as the Mayor of the City of Newport Beach for 2012 -2013. Mayor Curry took his proper place at the Council dais. 7. ELECTION OF MAYOR PRO TEM. Mayor'Curry, in presiding, placed all members of the City Council on an equal basis to nominate and elect. Council Member Henn nominated Council Member Hill fur Mayor Pro Tem. Interested parties were invited to address the Council. There being no testimony, Mayor Curry closed public comments. Motion by Council Member Gardner to close the nominations. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Petros, Council Member Gardner, Mayor Curry, Council Member Selich; Council Member Henn, Council Member Daigle Without objection, Council Member Hill was selected as the Mayor Pro Tem of the City of Newport Beach for 2012 -2013. Mayor Pro Tem Curry took, his proper place at the Council dais. S. SEATING.ARRANGEMENTS FOR CITY COUNCIL. The Council Members decided on the seating arrangements for the Council dais, with the senior Council Members'having first preference. The following seating order was determined (left to right): Gardner - Petros - Hill - Curry - .Selich - Henn - Daigle 9. REMARKS. Presentation of Gavel Plaque to Outgoing Mayor Mayor Curry commented on the character, qualities and capabilities of outgoing Mayor Gardner, noting her leadership skills during the City's various tumultuous times. He listed accomplishments made in the City during her tenure and presented her with a gavel plaque in appreciation of her service. Outgoing Mayor Remarks Volume 60 - Page 681 City of Newport Beach City Council Minutes December 11, 2012 Outgoing Mayor Gardner stated that she was fortunate for the opportunity to serve as Mayor and to work with her colleagues and staff. Remarks from Newly Re- elected/Elected Council Members. Council Member Selich thanked his wife and family for their support, and stated that he is honored to have been re- elected for another four years. He presented a brief background, addressed the many accomplishments made, and expressed his appreciation to outgoing Council Member Rosansky. He presented a list of goals and projects which he would like Council to consider during the next four years. Council Member Petros expressed his appreciation to his wife aridfamily. He looked forward to the work ahead and working together with his colleagues, the City, and residents to deal with the challenges ahead. He especially thanked Council Member Rosansky for his help in the process and in this transition. Mayor Curry expressed his appreciation to his colleagues, his wife, and family'for.,their support. He stated that the City is in good shape and believed'that the upcoming years hold a jgt of possibilities. He listed upcoming projects and actions in order to efficiently manage the City, maximize value for the taxpayers, and preserve a strong financial base.: He commented positively on the new Civic Center and believed that it will be a source of pride for the City. He noted that the new Council Chamber opening can be celebrated, that. there is still work to be completed, and invited the public to the Community Room for refreshments after the meeting:., However, he reported that a formal open house will be held Saturday, May 4, 2013,'from 1,0:00 a.m. to 1:00 p.m. He congratulated City staff for the efforts and contributions. XIII. ADJOURNMENT -Adjourned: at 8:07 p.m. in memory of Don Roberson The agenda for the Regular Meeting was posted on December 5, 2012, at 1:07 p.m. on the City Hall Bulletin Board located outside of the City of "Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 60 - Page 682