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HomeMy WebLinkAbout06/12/2012 - Regular Meeting0 4�� City Council Minutes Regular Meeting June 12, 2012 — 7:00 p.m. I. STUDY SESSION - Cancelled II. ROLL CALL - 5:00 p.m. Present: Council Member Hill, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Daigle, Council Member Henn Excused: Council Member Rosansky Council Member Rosansky arrived at 5:10 p.m. III. PUBLIC COMMENTS REGARDING CLOSED SESSION -None IV. CLOSED SESSION - 5:00 p.m. A. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Government Code § 54956.9(a)): 1. Christian Benard u City of Newport Beach, et al Orange County Superior Court Case No. 30- 2011- 00456286 B. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(c)): One matter C. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6): Agency Designated Representatives: Dave Kiff, City Manager; and Richard Kreisler, Special Counsel Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Lifeguard Management Association (LMA); Newport Beach Fire Management 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 (NBEL); and Newport Beach Part -Time Unit (UPEC, Local 777) V. RECESS VI. RECONVENE AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Volume 60 - Page 476 City of Newport Beach City Council Minutes June 12, 2012 Council Member Rosansky joined the meeting at 4:00 VIII. CLOSED SESSION REPORT - City Attorney Harp reported that there is no Closed Session report IX. PLEDGE OF ALLEGIANCE -Council Member Selich X. INVOCATION - Mayor Pro Tom Curry Al Youth Council Annual Presentation to City Council Recreation Manager Cates provided background about the Youth Council and addressed membership and participating schools. She introduced the Youth Council Members in attendance and staff liaison, Recreation Supervisor Harmon. Youth Council Members Courtney Garkani, Marissa Fink, and Brian Goldstone provided a PowerPoint presentation addressing the Youth Council's mission, responsibilities and purpose, duties and activities, community service projects, Youth Government Day, guest speakers, recognition by the Newport -Mesa Unified School District ( NMUSD) Board and future goals. They expressed their appreciation to Council Member Rosansky, NMUSD Board Member Karen Yelsey, and the 2012 Youth Council for their support of the organization. Council Member Rosansky commented positively on Youth Government Day and stated the experience has been rewarding. Mayor Pro Tern Curry congratulated Youth Council Members and expressed his well wishes 2012 Newport Beach Restaurant Week Peggy Fort, Vice President of Marketing for the Newport Beach Restaurant Association Business Improvement District (BID), provided a PowerPoint presentation that addressed the 2012 campaign strategy, including restaurant buy -in fees and media /outreach events, and provided an overview of marketing and publicity results. She presented information on restaurant participation revenue, sponsors, sponsorship growth comparison from previous years, and marketing and publicity. She addressed the budget, marketing the event online, social media marketing, partnerships and website analytics, website demographics, advertising, onsite promotions and campaign measurement strategies, as well as an overview of campaign results and results from a post -event survey. XII. NOTICE TO THE PUBLIC XIII. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION ACTION OR REPORT (NON DISCUSSION ITEM) Council Member Hill announced the birth of his second grandchild, Eloise Caroline Hill. Mayor Pro Tem Curry reported attending a briefing about port dredging along the Upper and Lower Bays, with Mayor Gardner, Council Member Henn, Congressman Dana Rohrabacher, and Members of the U.S. Army Corps of Engineers, and commented positively on the event. He commented on his participation in a Volume 60 - Page 477 City of Newport Beach City Council Minutes June 12, 2012 breakfast with the Navy League, as well as a recent Orange County Association of Cities Annual Infrastructure Conference. Council Member Daigle addressed several events at the Central Library, including e -book training on June 13, 2012 at 7:00 p.m. and the kick-off of the summer reading program on June 23, 2012. Council Member Henn reported that on June 5, 2012, staff hosted a meeting with the Marina Park stakeholders where they reviewed the 50% design plans for Marina Park and noted that there was a very favorable response from those who attended. He announced that the Coastal Commission will review the project on June 13, 2012 and encouraged interested parties to attend the meeting which will be held at the Huntington Beach Council Chambers at 9:00 a.m. He also reported that, on June 7, 2012, he met with Supervisor John Moorlach, his staff, and the principals of ExplorOcean at the Balboa Village for a tour of the facility. He reported doing a Career Day presentation for his grandson's third grade class at Newport Elementary School regarding Careers in Cities. Council Member Henn announced that there will be a Balboa Village Neighborhood Revitalization Committee meeting on June 14, 2012 at 4:00 p.m. in the Council Chambers. He noted that the next Tidelands Management Committee meeting will be held on June 20, 2012 at 4:00 p.m. at the OASIS Senior Center. ' Mayor Gardner commented positively on the Corona del Mar 5K, as well as the Balboa Island Parade. She expressed her appreciation to residents near the Harbor who are patiently dealing with the noise and annoyances associated with the harbor dredging project. XIV. CONSENT CALENDAR, Mayor Gardner inquired regarding the possibility of the School District assisting with the cost of paying the crossing guards (Item 13). City Manager Kif£ reported that assistance has not been requested in recent years, assuming that the School District has no available funding. He noted that the parent groups are assisting with matching funding, but not the District. City Attorney Harp reported that, regarding Item 3, there were typographical errors that have been corrected and pointed out that a new ordinance was distributed. Regarding Item 9, City Manager Kiff reported that no changes are proposed to the BID boundary but there is support from the BID and residents for amending the boundary. He noted that this change would involve an ordinance amendment which would come back to Council in the next fiscal year. A. READING OF MINUTES /ORDINANCES AND RESOLUTIONS 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct the City Clerk to read by title only. C. RESOLUTIONS FOR ADOPTION 4. SUBMITTAL OF OCTA PROPOSITION 1B STATE -LOCAL PARTNERSHIP PROGRAM FUNDING APPLICATIONS. 1100 -20121 Adopt Resolution No. 2012 -37 affirming the City ?s commitment to use Measure M Turnback or Fair Share funds as the required matching funds. 5. RESOLUTION AUTHORIZING GRANT APPLICATIONS FOR THE ORANGE COUNTY TRANSPORTATION AUTHORITY BICYCLE CORRIDOR IMPROVEMENT Volume 60 - Page 478 City of Newport Beach City Council Minutes June 12, 2012 PROGRAM. [100 -2012] Adopt Resolution No. 2012 -38 authorizing submission of grant applications for the OCTA Bicycle Corridor Improvement Program. 6. RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF SELECTED STREETS AND PARKING LOTS FOR THE JULY 4TH HOLIDAY PERIOD. [100 -2012] Adopt Resolution No. 2012 -39 authorizing the temporary closure of Seashore Drive, Newport Boulevard, Back Bay Drive and Balboa Boulevard, selected parking lots, and selected feeder streets. REPEAL RESOLUTIONS NO. 86 -2 AND 86 -9, ABOLISHING THE YOUTH COUNCIL. [100 -2012] Adopt Resolution No. 2012 -47, repealing Resolution Nos. 86 -2 and 86 -9, thereby dissolving the current structure of the Newport Beach Youth Council. 12. RESOLUTION 2012 -44 RELATING TO UPDATING MEMBERSHIP OF THE CITIZEN ADVISORY PANEL OF THE TIDELANDS MANAGEMENT COMMITTEE. [100 -2012] Adopt Resolution No. 2012 -44 amending the membership of the Citizens Advisory Panel of the Tidelands Management Committee to reflect eight (8) members total as decided by the Tidelands Management Committee. D. CONTRACTS AND AGREEMENTS 13. SERVICE AGREEMENT WITH ALL CITY MANAGEMENT SERVICES, INC., FOR CROSSING GUARD SERVICES (C- 5137). [381100 -2012] Approve and execute the Service Agreement with All City Management Services, Inc., for crossing guard services, at a not -to- exceed cost of $500,000 during the term of the agreement. 14. STORM DRAIN CDS UNIT CONSTRUCTION - AWARD OF CONTRACT NO. 4915. [381100 -2012] a) Approve the project drawing and specifications; b) award contract No. 4915 to Excel Paving Company for the total bid price of $261,456 and authorize the Mayor and City Clerk to execute the contract; and c) establish a contingency of $39,218 (approximately 15 percent) to cover the cost of unforeseen work. 15. JAMBOREE ROAD BRIDGE WIDENING OVER STATE ROUTE 73 - APPROVAL OF AMENDMENT NO. 2 WITH ANDERSON PENNA. [381100 -2012] Approve Amendment No. 2 with Anderson Penna for additional construction management services at a not -to- exceed price of $48,631 for the Jamboree Road Bridge Widening over State Route 73 project, and authorize the Mayor and City Clerk to execute the Amendment. E. MISCELLANEOUS 16. PLANNING COMMISSION AGENDA FOR JUNE 7, 2012. [100 -2012] Receive and file. 17. ANNUAL MEASURE M FUND ELIGIBILITY REQUIREMENTS. [100 -2012] a) Adopt the Seven -Year Measure M CIP; and b) direct staff to submit all necessary material to OCTA to satisfy the Measure M annual eligibility requirements. 18. NEWPORT HARBOR NAUTICAL MUSEUM - ENCROACHMENT PERMIT AND AGREEMENT TO REPLACE AMUSEMENT EQUIPMENT WITHIN THE EASEMENT FOR SIDEWALK, PUBLIC UTILITY, AND PEDESTRIAN PURPOSES. [100 -2012] a) Approve applicant's request to replace, maintain, and operate the bungee trampoline Volume 60 - Page 479 City of Newport Beach City Council Minutes June 12, 2012 equipment, stairway, and appurtenances encroaching into the easement for sidewalk, public utility, and pedestrian purposes at 600 E. Bay Avenue; and b) authorize staff to execute an encroachment permit (N2010 -0109) and encroachment agreement for these improvements. 19. DIRECTIVE TO EQAC TO REVIEW ENVIRONMENTAL IMPACT REPORTS FOR THE UPTOWN NEWPORT PROJECT AT 4311 -4321 JAMBOREE ROAD, THE WESTCLIFF MEDICAL ARTS BUILDING AT 1901 WESTCLIFF DRIVE, AND THE BACK BAY LANDING MIXED USE- PROJECT AT 300 EAST COAST HIGHWAY. [100 -2012] Direct the Environmental Quality Affairs Citizens Advisory Committee (EQAC) to review and submit comments on the draft environmental Impact reports for the Uptown Newport, Westcli£f Medical Arts Building, and Back Bay Landing Mixed -Use projects. 20. TRAFFIC SIGNAL MODERNIZATION PHASE 5 - COMPLETION AND ACCEPTANCE OF CONTRACT NO. 4698. [381100 -2012] a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) authorize the City Clerk to release the Labor and Materials Bond 35 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. 21. BUDGET AMENDMENT TO APPROPRIATE EXPENDITURES AND REVENUES FOR LIBRARY LITERACY SERVICES. [100 -2012] Approve Budget Amendment No. 12BA -039 to appropriate $27,350 from the 030 -22482 special purpose deposit account to increase revenues in account 4010 -5091 by the same amount and increase expenditures in the Literacy accounts: Salaries & Benefits: 4060 -7020 by $19,000; 4060 -7210 by $450.00; 4060 -7425 by $325.00; 4060 -7440 by $800.00; and 4060 -7460 by $115.00; and Operating Expenditures: 4060- 8012 by $6110; 4060 -8060 by $100.00; and 4060 -8105 by $450.00. 22. BOARD AND COMMISSION SCHEDULED VACANCIES - CONFIRMATION OF NOMINEES. [100 -2012] Confirm the nomination made by the Ad Hoc Appointments Committee, as listed in the staff report. S28. CONSIDER APPROVAL OF THE CHARTER UPDATE COMMITTEE'S RECOMMENDATION TO ADD CHARTER SECTION 1106 TO ITS WORK PROGRAM. [331100 -2012] Authorize the Charter Update Committee to add to its Work Program Charter Section 1106. Motion by Mayor Pro Tem Curry, seconded by Council Member Rosansky to approve the Consent Calendar, except for the items removed (1, 3, 8, 9, 10 and 11). 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 Member Daigle, Council Member Henn XV. ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES FOR THE MAY 22, 2012 STUDY SESSION AND REGULAR MEETING. [100 -2012] Jim Mosher reported having submitted written comments regarding the minutes to the City Clerk and assumed they have either been incorporated or rejected. Regarding the Study Session minutes, he called attention to the City Attorney's statement about the responsibilities of the Parks, Beaches and Recreation Commission (PB &R) and their Charter obligation to make recommendations to Volume 60 - Page 480 City of Newport Beach City Council Minutes June 12, 2012 Council regarding how the monies for those purposes are allocated during the year. He believed that PB &R does not have the option to defer their responsibilities to anyone. He reported asking the PB &R Commission about deferring their Charter responsibilities to Council and they unanimously indicated having no recollection of doing so. Mayor Pro Tem Curry noted that no Commissioner serves longer than eight years and that there may be history beyond eight years relative to the practice. Motion by Mayor Pro Tem Curry, seconded by Council Member Rosansky to waive reading of subject minutes, approve as amended, and order filed. 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 Member Daigle, Council Member Henn 3. AN ORDINANCE ESTABLISHING AN ADMINISTRATIVE CODE ENFORCEMENT PROGRAM, NEWPORT BEACH MUNICIPAL CODE CHAPTER 1.05 AND SECTIONS 1.04.010, 10.66.060 AND 10.66.070. [100 -2012] Jim Mosher noted that this has been before Council twice and reported submitting written comments before the meeting regarding the issue. He expressed concern regarding deletion of how notices to violators are currently provided and how the new process allows the notice to be mailed. City Attorney Harp stated that it is inefficient to have a multi -step process for serving notices. He noted that service by mail is recognized as a proper way to serve people. George Schroeder expressed support of the ordinance. Discussion followed regarding the levels of fines. City Attorney Harp noted that Code Enforcement's goal is to bring properties into compliance, not to generate revenues. He stated that he finds it hard to imagine a scenario where high levels of fines would be reached. Motion by Council Member Rosanskv, seconded by Council Member Henn to introduce amended Ordinance No. 2012 -13, amending NBMC Chapter 1.05 to establish an Administrative Code Enforcement Program; Section 1.04.010 to add Civil Penalties; and Sections 10.66.060 and 10.66.070 to align the administrative appeals process, and pass to second reading on June 26, 2012. 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 Member Daigle, Council Member Henn S. RESOLUTION OF INTENTION TO RENEW THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS IN FY 2012-2013.[100-2012] Regarding Items 8, 9, 10 and 11, Jim Mosher expressed the opinion that none of the Business Improvement Districts (BIDs) should be renewed because the functions performed would be more appropriately done by private booster groups which solicit contributions for private benefit. He addressed discrepancies in the BIDs regarding their roles and stated that he finds it inappropriate to give them control over the collected levies. He pointed out disinterest by members to serve on the boards and requested that Council not renew the BIDs. Council Member Hill reported that the BIDs have existed since the late 1990's and believes they have been and continue to be a significant part of the City's economic development and community vitality. He expressed support of the BIDs and took issue with Mr. Mosher's comments. Volume 60 - Page 481 City of Newport Beach City Council Minutes June 12, 2012 Motion by Council Member Rosanskv seconded by Council Member Henn to a) approve the Marine Avenue Business Improvement District FY 2011 -2012 Annual Report; and b) adopt Resolution No. 2012 -40, a Resolution of Intention to renew the Marine Avenue Business Improvement District and levy assessments in Fiscal Year 2012 -2013 and set the public hearing date for June 26, 2012. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Daigle, Council Member Henn 9. RESOLUTION OF INTENTION TO RENEW THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS IN FY 2012 -2013. [100 -20121 Jim Mosher addressed a request by the BID to change the boundary, but noted that the request is not part of the report. Scott Palmer, BID Administrator, reported that the BID brought forward the request to change the boundaries but staff advised that this could be handled at a later date. He agreed that the boundary change is not part of the renewal. He read a finding which supports removing the area west of Adams Street from the BID boundary. W. R. Dildine stated that he was told that the boundary issue would be resolved tonight. Following discussion, it was the consensus of Council to bring the issue relative to the boundary back at a future meeting. Motion by Council Member Henn, seconded by Council Member Rosanskv to a) approve the Balboa Village Business Improvement District FY 2011 -201.2 Annual Report; and b) adopt Resolution No. 2012 -41, a Resolution of Intention to renew the Balboa Village Business Improvement District and levy assessments in Fiscal Year 2012 -2013 and set the public hearing date for June 26, 2012. 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 Member Daigle, Council Member Henn 10. RESOLUTION OF INTENTION TO RENEW THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS IN FY 2012-2013.[100-20121 Ron Hendrickson believed that the residents in the area have concerns with the plans to remove a lane from Coast Highway at MacArthur Boulevard with the intent to widen the sidewalk at the intersection. He spoke in opposition to the project and announced an upcoming meeting on June 14, 2012 where the issue will be discussed. He encouraged residents to attend. Council Member Henn clarified that the Corona del Mar entrance plan is not on the agenda for the June 14, 2012 Citizens Advisory Panel (CAP) meeting. Mayor Gardner added that the Corona del Mar entrance project has not been budgeted, but rather the funding for the proposed live test has been approved. In response to Council Member Daigle's inquiry regarding the authority of the BID Board to appropriate funds, City Attorney Harp reported that the current process is in compliance and noted that Council has the authority to modify the Annual Report prepared by the BIDS. Motion by Mayor Pro Tern Curry, seconded by Council Member Henn to a) approve the Corona del Mar Business Improvement District FY 2011 -2012 Annual Report; and b) adopt Resolution No. 2012 -42, a Resolution of Intention to renew the Corona del Mar Business Improvement District and levy assessments in Fiscal Year 2012 -2013 and set the public hearing date for June 26, Volume 60 - Page 482 City of Newport Beach City Council Minutes June 12, 2012 2012. 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 Member Daigle, Council Member Henn 11. RESOLUTION OF INTENTION TO RENEW THE NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS IN FY 2012 - 2013.[100 -20121 Motion by Council Member Hill, seconded by Mayor Pro Tern Curry to a) approve the Newport Beach Restaurant Business Improvement District FY 2011 -2012 Annual Report; and b) adopt Resolution No. 2012 -43, a Resolution of Intention to renew the Newport Beach Restaurant Business Improvement District and levy assessments in Fiscal Year 2012 -2013 and set the public hearing date for June 26, 2012. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Daigle, Council Member Henn XVI. .PUBLIC COMMENTS Bettina Deininger commented on a recent Lido Isle resident meeting regarding revitalization of the area. She spoke in opposition to building apartments and a parking structure on the current City Hall site, and suggested looking into building a boutique hotel. XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Rosansky reported on a recent meeting of the Charter Update Committee, noting that good progress is being made. He reported that the next meeting will occur June 14, 2012, at 4:00 p.m. in the Friends Room of the Central Library. Mayor Pro Tern Curry reported on a recent meeting of the Finance Committee, stating that the Committee received a report relative to the process for refunding its outstanding Assessment District bonds for all of the Assessment Districts in the City except for Assessment Districts 100 and 103. He stated that the Committee received a bid from a bank to refund the bonds with an interest rate of 2.26 %. He reported that this will enable the City to refund money to the remaining Assessment District property owners. XVIII. PUBLIC HEARINGS 23. ADOPTION OF FISCAL YEAR 2012 -13 APPROPRIATIONS LIMIT. [100 -20121 Finance Director McCraner presented details of the Appropriations Limit report, noting that the State Constitution limits the amount that governments are allowed to increase appropriations annually and noted that the City's limit is $150 million. She noted that the proposed budget was lower than that amount by approximately $32 million. Mayor Gardner opened the public hearing. Hearing no testimony, she closed the public hearing. Motion by Council Member Rosansky, seconded by Council Member Henn to adopt Resolution No. 2012 -45, the City's Appropriations (Gann) Limit for Fiscal Year 2012 -13 in the amount Volume 60 - Page 483 City of Newport Beach City Council Minutes June 12, 2012 of $150,988,947. 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 Member Daigle, Council Member Henn 24. RESOLUTION NO. 2012 -46; FISCAL YEAR 2012 -13 BUDGET ADOPTION. [100 -20121 Finance Director McCraner presented details of the report and addressed core budget principles, the budget checklist, FY 2012 -13 budget with checklist items, and recommendations. She addressed previous reviews and Council actions, the addition of neighborhood revitalization projects, and changes subsequent to the May 22 Council meeting. In response to Mayor Gardner's question regarding the Fire Department vehicles, Fire Chief Poster reported that the three vehicles to be purchased are a ladder company, an engine company, and a paramedic ambulance. Council Member Selich noted a new ladder vehicle was purchased .approximately three years ago and that the old ladder vehicle was put in reserve. Fire Chief Poster reported that the old truck that is currently in reserve will be auctioned and that the current ladder truck will be placed in reserve. Finance Director McCraner continued with her presentation, addressing CIP re- budgets, total budget expenditures and total budget revenues. She reported that the budget remains balanced, and addressed funding for checklist items and staff recommendations. Discussion followed regarding possible conflicts. Council Member Hill expressed concerns regarding the Balboa Boulevard Landscaping item, whereby City Attorney Harp advised him to recuse himself from that line item but noted that he is allowed to vote on the overall budget. Council Member Daigle reported that she had requested additional information relative to reservoir cover material. City Manager Kiff reported that Council will have input regarding how the applicable vendor is selected, as well as materials. Mayor Gardner indicated that she does not support allocating $15,000 for the Balboa Island Historical Society because she would like to see a City -wide Historical Society. Addressing Council Member Hill's question regarding the Irvine Boulevard Median Project, City Manager Kiff noted that Council previously approved and funded the item. Mayor Gardner opened the public hearing, excluding the Balboa Island Historical Society item and Balboa Boulevard Landscaping Project. Hearing no testimony, she closed the public hearing. Motion by Mayor Pro Tom Curry, seconded by Council Member Rosansky to adopt Resolution No. 2012 -46 adopting the City Manager's Proposed Fiscal Year 2012 -13 Budget, excluding the checklist line items relative to the Balboa Island Historical Society and the Balboa Boulevard Landscaping (design). The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Daigle, Council Member Henn Mayor Gardner opened the public hearing on the Balboa Island Historical Society item. Volume 60 - Page 484 City of Newport Beach City Council Minutes June 12, 2012 Tom Popplewell, Executive Director of the Balboa Island Museum and Historical Society, discussed the volunteers on Balboa Island and reported that the museum was moved in order to increase public access and improve displays. He thanked the City for previous support and the direction sign, and addressed fiscal challenges. He requested Council support of their request. Discussion ensued regarding last year's appropriation from the City. Hearing no further testimony, Mayor Gardner closed the public hearing. Council Member Selich expressed support for the item. He agreed with the possibility of having a City -wide Historical Society but spoke positively about the current Historical Society facility. Mayor Pro Tem Curry also expressed support for the Balboa Island Historical Society. Motion by Council Member Selich- seconded by Council Member Hill to to approve the $15,000 checklist line item relative to the Balboa Island Historical Society. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Council Member Selich, Council Member Daigle, Council Member Henn Noes: Mayor Gardner Mayor Gardner opened the public hearing relative to the Balboa Boulevard Landscaping Project. Council Member Hill recused himself because he owns property within a 500 -foot radius of the Balboa Boulevard Landscaping Project and left the dais. Motion by Mayor Pro Tem Curry, seconded by Council Member Henn to approve the $265,000 checklist line item relative to the Balboa Boulevard Landscaping (design). The motion carried by the following roll call vote: Ayes: Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Daigle, Council Member Henn City Manager Kiff expressed his appreciation to Finance Department staff and all the Department Directors for their hard work. Mayor Pro Tem Curry commented positively on the process, addressed the City's surplus, and also commended staff for their hard work. XIX. CURRENT BUSINESS 25. PROFESSIONAL SERVICES AGREEMENT WITH TK ARMSTRONG & ASSOCIATES FOR BUSINESS IMPROVEMENT DISTRICT MANAGEMENT (C- 5156). [381100 -20121 Assistant City Manager Smith addressed the process, including goals and objectives and the scope of the work required. Regarding the Request For Proposal (RFP), Senior Buyer Nguyen reported on the unique qualifications required to be a BID Manager; presented details about the RFP process for professional services; and addressed the distribution of the RFP, receipt of the proposals, and evaluation of the RFP by a multi - person panel. He further discussed the evaluation panel, ranking and scoring, and the protocol followed for evaluating professional services. He stated that the City received five proposals, but only three were core proposals. He presented a brief summary of each of Volume 60 - Page 485 City of Newport Beach City Council Minutes June 12, 2012 the three proposals, including the winning proposal from TK Armstrong and Associates (TK). He listed their qualifications and added that they aligned with the City's requirements. Council Member Hill inquired regarding the familiarity of the panel with Visit Newport Beach Inc. (VNB). Public Information Manager Finnigan reported that one of the panelists had previously been a member of the VNB Board while employed by The Irvine Company. Mayor Pro Tem. Curry noted that the costs were evaluated after review of the qualifications and that TK was found to be more qualified than the other two firms; however, he expressed concern that the proposed budget would use all of the available BID revenues. Assistant City Manager Smith reported that the BIDS currently have assessments and sponsorships. She noted that the City once had an economic development program which provided funding for the BIDs, as well as support by various City departments. She addressed the benefits of having an administrator to not only support the BIDs but enhance their functionality. The administrator would be expected to coordinate with VNB and handle contracting for other services, including marketing. City Manager Kiff noted the marketing component would come from BID money and TK would just be managing contracts and subcontracts. In response to Council Member Hill's questions, Assistant City Manager Smith reported that there is no intent to markup subcontractor pricing, but the administrator will allow for a more efficient process of how BIDs contract for services. Discussion followed regarding TK's responsibility for designing marketing programs. Council Member Hill commented on their scope of work, believing that they would be replicating the work that VNB performs, but the VNB does this at no additional cost other than what the City already pays for the Transient Occupancy Tax (TOT) for their operation. He expressed concern that the contract does not require coordination with VNB. Bernie Svalstad, Corona del Mar BID President, spoke on behalf of all of the BIDs, referenced an email distributed under separate cover, asked that action on the item be delayed and listed reasons for doing so. Jim Walker, President of the Newport Beach Restaurant Association BID, reported meeting with the various RFP responders and noted that TK Armstrong came in third in the evaluation by the BID presidents. He pointed out that the Newport Beach Restaurant Association BID is a marketing BID and expressed concerns that the proposal does not mention marketing services. Sheri Drewry, Marine Avenue BID President and Vice President of the Newport Beach Restaurant Association BID, stated that they are made up of individually -owned businesses and do a lot of work on the aesthetics of the Island. She believed that the marketing component is missing and expressed concerns with TK's lack of experience in the area. Craig Batley, President of the Balboa Village BID, expressed the opinion that there. is miscommunication. He noted that there have been increases in the cost to perform BID administration, however, no money has been allocated for marketing. He indicated a desire by the Board of Directors for more information and time to review and discuss the issue. Jim Mosher indicated that the handout he sent has comments regarding the evaluation process and panel, and on the need for increased transparency. Scott Palmer indicated that his proposal was for $168,000 and that there was an additional $38,000 added to his proposal so that Dennis Stone can conduct a consensus - building program, which was an Volume 60 - Page 486 City of Newport Beach City Council Minutes June 12, 2012 add -on at Council's pleasure. Ali Zadeh, Corona del Mar BID, agreed that the BIDS need help but does not agree with the cost for the service. He believed that it would be better to have the City Manager decide whether there should be a BID- dedicated staff member than leaving it up to an RFP panel. He addressed the RFP process and believed that transparency in the decision - making process was unclear. Kerry Armstrong, TK Armstrong and Associates, reported that her firm has senior - certified marketing staff so that engaging other marketing firms is not necessary except to work collaboratively with the people that are already in place. She discussed her company's strengths and agreed that collaboration is needed with VNB. She emphasized the importance of engaging the BID Boards. Dan Purcell believed that the process is flawed and questioned the City subsidizing Restaurant Week Mayor Gardner indicated that she attends BID Board meetings for two BIDS, and believed that most of the BID members would agree that help is needed. She pointed out that the City is currently spending money to help manage the BIDs through the use of City staff. Council Member Henn noted that the BIDs' lack of assistance in website design and content management is a problem that needs to be solved and believed that there is an opportunity for improvement. He indicated that another problem involves continuity with BID Board membership, as well as consistency and integration of the look and feel of the BIDs, and in collaboration with the VNB. Council Member Selich reported that he attends BID Board meetings for two BIDs on a regular basis and is aware of the existing problems. He expressed the opinion that the City's overall goal is to grow the BIDs and make them stronger. Mayor Pro Tern Curry noted that restaurants are the number one revenue generator in the City. He addressed the nature of BIDs and a lack of trust with the decision produced by the City's process because the BIDs felt that they were not involved in the process. Council Member Hill expressed the opinion that he has an issue with the scope of work in the RFP since he did not see anything relative to the utilization of the VNB. He addressed the importance of consistency with the branding and reported that items that need focus on and attention to are website management, consistency of contracting, and governance standardization. Council Member Daigle commented regarding the current process and what is being proposed. Public Information Manager Finnigan addressed the current administrative process. Assistant City Manager Smith noted that the process is not streamlined and that staff spends a great deal of time on BIDs. She further addressed how TK would improve current operations. She emphasized that the City's goal is to create consistency and standardize the look ofthe websites and integration of the BIDs. Council Member Henn stated the need for increased input from BID Boards in order to coalesce around what they believe their needs are and how that is reflected in the process. He noted that what is needed are marketing management functions. Discussion followed regarding confirming a commitment from VNB to assist with marketing and giving clear direction to staff. City Manager Kiff listed issues raised by Council, including clarification relative to the interaction with VNB, specific clarification of what might be done with or without monetary transactions; filling Volume 60 - Page 487 City of Newport Beach City Council Minutes June 12, 2012 in the marketing void; determining what marketing work will be done by the contractor and what marketing work might be supplemented; and increasing interaction with BID Boards to identify their view of their needs, web management, consistency in contracting, and regulations. Council Member Selich requested quantifying what staff resources are being spent in managing the BIDS and what the additional expenditures will include. Council Member Rosansky indicated that he would like to see a work plan timeline. Mayor Pro Tem Curry emphasized the need to reconcile some of the expressed reservations from the BIDs. Council Member Hill stated that he was confused regarding the selection of vendors and expressed the need for clarification. Council Member Henn noted that the goals of having an administrator include relieving the BIDS of contracting drudgery and better oversight and control over the contracting process. Motion by Council Member Rosansky, seconded by Council Member Hill to continue the item to the August 14, 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, Council Member Selich, Council Member Daigle, Council Member Henn 26. NEWPORT BOULEVARD AND 32ND STREET MODIFICATION - APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH VA CONSULTING (C- 5157). (38/100- 20121 Deputy Public Works Director Webb provided the staff report and addressed modernization and synchronization projects. He noted that staff applied for grant funds from the Orange County Transportation Authority (OCTA) to conduct widening at choke - points in the City. He further addressed specific locations and stated that grant funds have been awarded to start the design. He reported a concept was developed and the item went out to bid. Council Member Selich inquired regarding the need for additional right -of -way at the southeast corner of 32nd Street and Newport Boulevard. Deputy Public Works Director Webb responded that the concept design does not fully solve right -of -way needs, and that there will be parking issues and right -of -way issues. He reported that the Via Lido design plans will be shared with the consultant for incorporation and that the goal is to add as much capacity as possible. Council Member Henn emphasized that his support for the project is strictly based on improvements to egress /ingress on the Peninsula. In response to Mayor Pro Tem Curry's question, Deputy Public Works Director Webb reported that the chosen firm is the best qualified bidder and staff is comfortable with their fee. Council Member Hill expressed the opinion that this is a step in making improvements to the Lido Village area. Deputy Public Works Director Webb addressed possible challenges with the project but noted that staff has contingency plans. He added that design standards will be incorporated into the project. Motion by Council Member Selich, seconded by Mayor Pro Tem Curry to approve a Professional Services Agreement with VA Consulting of Irvine, California, for the Newport Boulevard Volume 60 - Page 488 City of Newport Beach City Council Minutes June 12, 2012 and 32nd Street Modification project at a not -to- exceed price of $278,973, and authorize the Mayor and City Clerk to execute the Agreement. 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 Member Daigle, Council Member Henn 27. FISCAL YEAR 2011 -12 DISCRETIONARY GRANT EXPENDITURES, RECREATION CONTRACTOR AND OTHER CONTRACTOR REPORTING. [100 -20121 Council Member Daigle requested disclosure of discretionary grants provided by staff. City Manager Kiff reported that staff does not have the ability to provide discretionary grants. Council Member Henn noted that the reference to Bayside Village BID should be Balboa Village BID. Jim Mosher spoke in opposition to discretionary grants and noted the number of on -call contracts that have been issued. City Manager Kiff noted that there is a City Council Policy regarding discretionary grants that sets strict restrictions as to what the funds can and cannot be spent on. XX. MOTION FOR RECONSIDERATION - None XXI. ADJOURNMENT - 9:55 p.m. The agenda for the Regular Meeting was posted on June 8, 2012, at 2:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The amended agenda for the Regular Meeting was posted on June 9, 2012, at 6:24 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary Mayor Q� City Clerk Nip, Volume 60 - Page 489