HomeMy WebLinkAbout07/10/2012 - Study SessionCity Council Minutes
City Council Study Session - 4:00 p.m.
July 10, 2012 — 4:00 p.m.
I. ROLL CALL - 4:00 p.m.
Present: Mayor Gardner, Mayor Pro Tern Curry, Council Member Rosansky, Council Member Hill,
Council Member Henn, Council Member Selich
Excused: Council Member Daigle
II. CURRENT BUSINESS
1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR - None
SHIPS TO REEFS PRESENTATION. [100 -20121
Joel Geldin, Chairman and Chief Executive Officer of California Ships to Reef, a non -profit
organization, thanked Council for the opportunity to speak and provided a PowerPoint
presentation on the organization's plan to establish a regional system of artificial reefs along
the California coast to improve and enhance the California fish, plant and marine ecosystem,
and to enhance the tourism industry that is centered on fishing and diving. He addressed
current efforts, their purpose, available decommissioned surplus ships, current Federal
conditions, economic benefits of artificial reefing, underwater art, materials that can be used
for reefing, SCUBA tourism, economic benefits, California as a dive destination, ecological and
educational components, factors effecting reefing costs, proposed projects, funding sources,
actions by other cities to allow artificial reefing, and the possibility of the City partnering with
his organization.
In response to Council Member Henn's question, Mr. Geldin addressed the rules changed by
the Federal Government relative to the types of ships available for artificial reefing, noting
that any ship built with insulating materials such as Polychlorinated Biphenyls (PCB) were to
be stricken from the list.
Dan Purcell expressed concerns about potential problems and risks with the program and the
impact on the sea lion population.
3. REQUEST TO AMEND THE ORDINANCE REGARDING THE TAXATION OF HOTEL
ROOMS. [100-20121
Assistant City Manager Smith referenced the staff report and indicated that staff is looking
for direction from Council regarding complimentary (comped) rooms, noting that the City is
currently collecting taxes on complimentary rooms.
Finance Director McCraner addressed the current calculation for the tax rate.
Mayor Pro Tem Curry believed that taxing people on a free room is not consistent with being a
business - friendly City, commended the City for its work in revenue generation, and stated
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that this is a case where direction should be given to not charge the tax on complimentary
rooms.
Council Member Hein distinguished between the various categories for offering
complimentary rooms and stated that he supports allowing some relief from charging taxes.
Council Member Hill noted that there are only two cities that charge taxes for complimentary
room of those surveyed and agreed with Mayor Pro Tem Curry regarding the importance of
remaining business - friendly.
Gary Sherwin, Visit Newport Beach (VNB), addressed the reasons why hotels provide
complimentary rooms including charitable reasons, reported on an upcoming event involving
meeting planners where rooms will be comped for business reasons to persuade them to book
their meetings at City venues, and reported that the disgruntled guest category is a small
percentage of the total comped rooms offered.
Council Member Selich expressed agreement with Mayor Pro Tem Curry and stated that he
was in favor of exempting the four categories in the report from Transient Occupancy Taxes
(TOT).
Jim Mosher stated why the TOT is needed, suggested the possibility of waiving the
promotional fee rather than the TOT, and commented on the survey of surrounding cities and
comping rooms for people in the hospitality industry.
George Schroeder believed that more information is needed and indicated that comparisons
with comparable cities should have been made.
Mr. Sherwin reported that the cities of Huntington Beach, Costa Mesa, and Laguna Beach do
not charge TOTS on comped rooms.
Discussion followed regarding validating comped rooms and the need to work with the hotels
to obtain an accurate accounting of comped rooms per year, which will result in a potential
revenue loss to the City.
Finance Director McCraner reported that the information will be checked during the audit
process and asked if Council believed that there should be a cap.
Mayor Pro Tem Curry stated that the matter should be administered in the most effective
way possible.
Following discussion, staff was directed to generate the necessary ordinance that would
exempt all complimentary hotel rooms from TOT.
4. CHARTER UPDATE COMMITTEE DISCUSSION. [331100 -20121
Assistant to the Assistant City Manager Houston discussed the establishment of the Charter
Update Committee (CUC), meetings held, input received, timelines for the process, and the
need for specific Council direction.
Paul Watkins, Chair of the Charter Update Committee, expressed his appreciation to Council,
reported that the Committee had a busy six- weeks, commended CUC members and City staff,
referenced written comments submitted by the public, presented a summary of the
recommendations, noted that there was focus on Section 708 (Board of Library Trustees
Powers and Duties) which seemed to be a controversial part of the Charter, and addressed a
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compromise reached on Section 705.
In response to Council Member Henn's question, Chairman Watkins reported that the CUC
worked at a fast pace and proceeded efficiently. Further, he added that the public was
allowed to provide input fairly and appropriately, and indicated that their comments were
very valuable.
Council Member Rosanky stated that the discussions were lively, with different sides taken on
issues, and that the CUC explored different alternatives within the confines of the scope of
work given to them by the City Council.
Regarding Council compensation, Chairman Watkins noted that Council Members in
attendance recused themselves appropriately, staff provided comparative information on
other Councils, and stated that the CUC simply updated what needed to be updated.
Assistant to the Assistant City Manager Houston commented on sections that remained
unchanged.
Regarding Section 503 (Compensation and Bonds), Chairman Watkins noted that the CUC
determined that bonds are provided to City employees, that the costs are relatively affordable,
and covers an array of employees. In addition, regarding Section 801 (Positions Included in
the (Civil Service] System), he stated that it was determined that the Section did not need
amending.
Mayor Pro Tern Curry commended the CUC and noted that Councils' compensation is not
being increased or decreased, but rather a description was included in the Charter relative to
compensation.
Council Member Rosansky thanked the CUC for their hard work.
Elizabeth Stahr addressed Section 708, commented on the issue surrounding the hiring of
a Library Service Director, believing that it takes a lot of people to vet candidates. She
expressed the opinion that powers should not be taken away from Board of Library Trustees
and expressed appreciation to the CUC for their work.
George Schroeder commended Ms. Stahr for her work with the Library, referenced results of a
Citizen Satisfaction Survey regarding Library Services, noted that residents are very happy
with the Library System and Board of Library Trustees, commented on the shift of power
from Library Trustees to politicians in the updated Charter and the power to hire /fire
Librarians to the City Manager who serves the City Council, suggested that there be no
change to Section 708, believed that the Library should not be under the control of politicians,
provided a handout that included the existing and proposed language, and asked that Section
708 be placed on the ballot as a stand -alone item, if it will be voted on.
Paul Glowienke noted he was a member of the CUC but was speaking as a member of the
public. He indicated that Section 708 was considered completely, stated that the City
Manager originally recommended that it not be changed, believed that the Library Services
Director should be under the management of the City Manager, and expressed agreement
with the proposed amendment.
Jim Mosher believed that the process was flawed and did not see an urgent need to present
the Charter Amendments.
Dan Purcell believed that the Charter Update process was restrictive for the public and
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believed that there should have been better reporting.
Dan Wampole, Charter Update Committee Member and member of the public, commented on
Section 708; He believed that the City Manager needs to have an equal amount of authority
and that this is non - existant in the previous version of the Charter. He reported contacting
City 'Manager Kiff and asking for his assistance in drafting the amended language for Section
708.
Ron Hendrickson addressed the Council compensation section (Section 402) noting there is no
mention of retirement benefits and health insurance for Council. Regarding Section 407
(Regular Meeting), he suggested adding language for setting the hour of the meeting by
ordinance. In addition, he commented on Sections 503 (Compensation and Bonds) and 704
(Meetings Chairperson). He believed that the process was good, but rushed.
David Bahnsen, Charter Update Committee Member and member of the public, commented
on the lengths of the meetings, stated that there was extensive discussion on many issues,
noted that the City Attorney's Office was clear regarding the process, and stated that there
was a great deal of interaction by and with the Committee.
Novell Hendrickson presented an exhibit regarding present practice, noted that 14 of the
items were amended in 2010, and commented on the public comment process.
Mayor Gardner indicated that she attended most of the CUC meetings, believed that there
was good public comment received, and stated that the CUC took cognizance of what was
said. Regarding Section 708, she believed that the City Manager should have the authority
over Library Services but in listening to public comments, suggested that Section 708 remain
unchanged or voted on separately.
Chairman Watkins indicated that he will reserve his comments until the regular meeting
agenda because of time constraints.
City Manager Kiff noted that staff has listed the items that Council may want to discuss
further, including Sections 402 -A (Compensation), 407 (Regular Meeting), 708 (Board of
Library Trustees Powers and Duties) and 709 (Parks, Beaches, and Recreation Powers and
Duties).
Council Member Rosansky indicated there was also extensive discussion on Sections 409
(Place of Meetings), 421 (Contracts Execution) and 608 (Illegal Contract Financial Interest).
Discussion followed regarding Sections needing additional discussion, including Section 1114
(Claims and Demands).
Mayor Pro Tem Curry commented on other issues to consider, including creating a new
Charter Section to prohibit red light cameras in the City.
City Attorney Harp stated that he can provide sample language on the issue from the City of
Anaheim during the regular meeting.
III. PUBLIC COMMENTS
Jim Mosher believed that all meetings should be open to the public, encouraged Council to
adopt more expansive policies, and indicated that there is a Brown Act requirement to provide the
public with a written and oral announcement of topics discussed at the Closed Session meeting.
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IV. ADJOURNMENT -,5:40 p.m.
The agenda for the Study Session was posted on July 5, 2012, at 3:15 p.m. on the City Hall
Bulletin Board located outside of the City of Newport Beach Administration Building
City Clerk
Recording Secretary
Mayor
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