HomeMy WebLinkAbout03/13/2012 - Study Sessionk V 4,� C , ` .1D `,� u•. � W'I i. .101 C
City Council Minutes
City Council Study Session
March 13, 2012 — 4:00 p.m.
I. ROLL CALL - 2:00 p.m.
Present: Council Member Hill, Council Member Rosansky, Council Member Henn, Mayor Pro Tern
Curry, Mayor Gardner, Council Member Selich
Excused: Council Member Daigle
II. PUBLIC COMMENTS -None
City Council adjourned to Closed Session at 2:00 p.m-
III. CLOSED SESSION - 2:00 a.m.
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government
Code § 54956.9(a)): Three matters:
1. Morningside Recovery, LLC, et al v City of Newport Beach
Orange County Superior Court No. 30- 2011 - 00505900 -CU -WM -CJC
2. City of Newport Beach v Dennis Lee Holland
Orange County Superior Court Case No. 30- 2011- 00486864 -CU -MC -CJC
3. Friends for Good Planning v City of Newport Beach (Real Parties in Interest:
Newport Beach Country Club, Inc. and International Bay Company)
Orange County Superior Court Case No. 30- 2012 - 00550274
B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION -
SIGNIFICANT EXPOSURE TO LITIGATION (Government Code § 54956.9(b)):I
potential case
C. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION
OF LITIGATION (Government Code § 54956.9(c)): 2 potential cases
D. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6)
Agency Designated Representatives: Dave Mff, City Manager; Dana Smith, Assistant City
Manager; Terri Cassidy, Human Resources Director; and Richard Kreisler, Special Counsel and
Negotiator
Employee Organizations: All Labor Associations: Association of Newport Beach Ocean
Lifeguards (ANBOL); Lifeguard Management Association (LMA); Newport Beach Fire Management
Volume 60 - Page 393
City of Newport Beach
City Council Study Session
March 13, 2012
Association (NBFMA); Newport Beach Firefighters' Association (NBFA); Police Management
Association (PMA); Police Employees' Association (PEA); City Employees Association (NBCEA);
Newport Beach Professional & Technical Employees Association (NBPTEA); Newport Beach
Employees League (LABEL); and Newport Beach Part -Time Unit (UPEC, Local 777)
I. ROLL CALL - 4:00 P.M.
Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
V. CLOSED SESSION REPORT - None
VI. CURRENT BUSINESS
COUNCIL TO SHOW APPRECIATION TO FERN PIRKLE AND OTHERS FOR THEIR
WORK AS "FRIENDS OF THE IRVINE COAST."
Mayor Gardner listed the accomplishments and achievements of Fern Pickle and others. She
addressed the goals of the organization, discussed the completion of their
mission, and presented Ms. Pirkle with a proclamation in appreciation for her work.
Fern Pirkle expressed her gratitude for the opportunity to serve the City.
2. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR.
Regarding Item #4 (Peninsula Point Alley Replacement), Mayor Gardner stated that there was
a recent presentation on "green streets" and noted that recommendations have been made by
the Green Building Task Force to make streets greener with the use of permeable pavement. In
response to her question, Deputy Public Works Director Webb reported that sand infiltration
will be used on one of the alleys, noted that the entire alley has not been looked at yet, reported
that the alleys are being poured in one uniform pour, and stated that permeable pavement is
not being used for this project.
HARBOR CHARGES. [100 -20121
City Manager Kiff provided a PowerPoint presentation addressing the purpose, responsibilities,
and goals of the Tidelands Management Committee and the Ad Hoc Committee on Harbor
Charges. He discussed the Tidelands, presented an outline of the work plan for the Committee
on Harbor Charges, addressed adjustments made, highlighted examples of commercial marinas,
listed the largest 15 commercial pier permittees, added that permit holders currently rent a
section of tidelands via a one -year permit, discussed the rate per square foot, indicated that the
proposed new rent structure is based on 20% of gross income or on a base minimum rent of
$1.20 per square foot whichever is greater, addressed moving from one -year permits to longer -
term leases, reported that the proposal includes phasing the increases over three years, and
discussed the lease negotiation process.
In response to Council Member Daigle's question, City Manager Kiff addressed the pros
and cons of changing from one -year permits to longer -term leases.
Gary Pickett, CFO for Ardell Marina, commented on the uniqueness of Newport Harbor and the
actions of commercial marina operators in their efforts to run the marina. He believed that the
City's proposal does not consider the investments made by commercial marina operators, listed
Volume 60 - Page 394
City of Newport Beach
City Council Study Session
March 13, 2012
perceived flaws in the proposed lease agreements, reported that they are willing to work with
the City on an agreement that is fair to each party, stated that the City's proposal should be
based on fair - market value, addressed the increase in fees with the proposed terms, stated that
the City has not followed a proper process to establish the value of the tideland's use, noted that
the operators are requesting information that supports the proposed increases, and listed the
negative effects on the marina if the proposed plan is approved.
Dan Purcell thanked Council for addressing this issue.
John Vallely provided a brief history of his family's experience as waterfront property owners,
listed actions taken in developing the property, believed that it is the federal government's
responsibility to dredge the harbor, and expressed concern that this is an effort by the
government to take away property rights.
John Curci, Managing Owner of Lido Yacht Anchorage, referenced a letter dated March 7, 2012
to Council listing his concerns, noted his continued efforts in maintaining and improving his
property, believed that private ownership of the uplands needs to be recognized as a unique
private /public relationship with the City, acknowledged the need to increase the tidelands fees
but disagreed with the process used to determine the fees, addressed the proposed lease
agreement, provided the negative impacts to marina operators /owners of the proposed plan, and
asked for additional time to develop favorable resolutions for all of the parties.
Mike Thompson, representing two sports fishing and whale- watching businesses in the harbor,
indicated that it will be difficult for marina operators /owners to pay the proposed increases, and
stated that he believed that the City will be "double dipping ".
Norman Rest, Lido Sailing Club, reported that he built a seawall, provided other improvements
at his own expense, and expressed opposition to the proposed plan.
Bob McAffrey spoke in opposition to the proposed plan.
Bud Reveley inquired as to the ownership of the property the City is proposing to lease. City
Manager Kiff stated that the State has assigned the land to the City and clarified that the State
will not collect any fees.
In response to Mayor Gardner's questions, Council Member Selich stated that the
seawall improvements made were for the benefit of the uplands. City Manager Kiff stated
Newport Harbor is unique and noted that if the properties were to be appraised, they would be
assigned at a higher rate of 25% or more if the same entity owned the uplands and the
tidelands. Council Member Selich added that the rental percentage of the Balboa Bay Club is
30% because the City controls the uplands and tideland.
Mayor Pro Tem Curry thanked his Council colleagues who served on the Tidelands Committee,
noted that everyone acknowledges the need to raise fees, stated that he is sensitive to the issues
raised, suggested taking time to have additional public hearing sessions to allow the harbor
community to participate, expressed concerns about the economics and the possibility of the
government being involved in people's business, and expressed interest in sending the item
back to the Tidelands Committee for additional discussions with user groups.
In response to Council Member Hill's concerns, City Manager Kiff affirmed that the activity of
the tidelands fund is reported annually and reported that the tidelands include the harbor and
ocean beaches. Regarding the federal government's responsibilities, he noted that the City has
a federal lobbyist that is trying to get monies for the Lower Bay project and added that it was
this Council that first put money in the budget for the Lower Bay project.
Volume 60 - Page 395
City of Newport Beach
City Council Study Session
March 13, 2012
Council Member Hill believed that the proposed 20% of gross income fee could be a burden for
businesses, stated that he would like to see the difference between what is currently being paid
and the 20% of gross income, and noted that he would like to review the appraisal process that
is being used.
Council Member Daigle acknowledged frustration regarding the government and believed
that the approach needs to be explored. She agreed with needing more time to work with user
groups, believed that the value of the uplands needs to be considered in the calculations, stated
that for the last 70 years the harbor has not been maintained by the federal government but by
the self- starters in the community, and suggested that the City work with the community and
user groups.
Mayor Gardner acknowledged the need for additional community input and consideration.
Council Member Selich commented on the appraisal process, stated that 20% was not a random
choice, and noted that the City's goal is not to raise revenues, but rather to meet its obligations
under the State Tidelands Act.
Mayor Gardner reported that there will be more time in the future for public input.
City Manager Kiff thanked members of the public for their comments and email submissions.
Council Member Henn suggested that staff schedule a community meeting as soon as possible
4. REVISION OF STATE'S VERY HIGH FIRE HAZARD SEVERITY ZONE (VHFHSZ)
MAP FOR THE CITY OF NEWPORT BEACH. [100 -2012]
Mayor Pro Tem Curry recused himself since he lives in one of the City's Very High Fire Hazard
Severity Zones.
Fire Chief Poster utlized a PowerPoint presentation to explain possible fire- related hazards in
Newport Beach, discuss current methods of fire mitigation, present examples of local fires, note
that vegetation and steep slopes carry a fire quickly toward homes, report on the current
situation and determination of high- hazard areas, provide solutions including defensible space,
present examples of the fuel modification zones, identify the high- hazard zones in Newport
Coast, explain that the homes in the high - hazard zones were built according to Orange County
Fire Authority (OCFA) standards, present a Cal Fire Very High Fire Hazard Severity Zone Map
generated by the State, report that some of the areas identified by the State did not measure
correctly relative to wind velocity, present staffs recommendation to adjust the State map,
identify fire corridor areas as well as topography issues, address concerns voiced by
homeowners, note that fuel modification zones already exist, explain that changes in the High -
Hazard zone will require changes in building construction, report that homes inside the fuel
modification zone perimeter do not have increased building standards, and add that homes in
the High - Hazard zone that are newly modified by over 50% will need to abide by OCFA
standards. He noted that once the City's Fire Department develops findings an official report
and map will be presented to Council for consideration and approval and stated that the report
will be presented to the State after receiving Council's approval.
Council Member Daigle expressed her appreciation to Fire Chief Poster for his efforts.
In response to Council Member Henn's questions, Fire Chief Poster reported that
Volume 60 - Page 396
City of Newport Beach
City Council Study Session
March 13, 2012
measurements have not been made regarding the impact on homes in Newport Beach with the
newly modified map; however, he noted that if a home abuts vegetation and is at a slope, the
homeowner will need to take action. He reiterated that most of the areas already
have modification zones in place.
Mayor Gardner expressed her appreciation to Fire Chief Poster and his department for the
work.
City Attorney Harp noted that if Council approves the modified map, Councirs decision is not
rebuttable by the State.
Jamie Star agreed with the comments made by Fire Chief Poster, added that embers get under
shake shingles, noted that houses burn from the inside out, related her experiences during
various area fires, and expressed the importance of protecting the whole area.
VII. PUBLIC COMMENTS
Regarding Closed Session Item D, Jim Mosher discussed the MOU's for the Police and Police
Management employees.
Jamie Star addressed Council regarding fire rings at Big Corona Beach, suggested that Council
adjourn a meeting early so that they can drive to Corona del Mar and experience what residents
experience every week during summer, reported that the Police Department posted a crime alert
notice in the area because of the increase in car break ins and robberies, urged Council to consider
relocating the fire rings to Crystal Cove where there are three miles of unused beaches, suggested
that the City install a gate at the Big Corona entrance, believed that residential parking permits
should be considered for the area, and claimed that beach users do not spend money in the City.
VIII. ADJOURNMENT - The City Council adjourned back into Closed Session at 5:40 p.m.
The agenda for the Study Session was posted on March 8, 2012, at 5:20 p.m. on the City Hall
Bulletin Board located outside of the City of Newport Beach Administration Building.
1 lL�1� ,•
City Clerk
'0&
Recording Secretary
Mayor
Volume 60 - Page 397