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HomeMy WebLinkAbout04/09/2013 - Study SessionCity Council Minutes Study Session April 9, 2013 — 4;00 p.n-L I. ROLL CALL - 4:00 p.m. II. Present: Council Member Gardner, Council Member Petros, Mayor Pro Tem Hill, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR In response to Council Member Gardner's question regarding Item 10 (Emergency Services Consulting International (ESCI) Professional Services Agreement), City Manager Kiff confirmed that the associated cost covers all four phases of the project. Mayor Pro Tern Hill noted that, regarding Item 6 (Approval of Professional Services Agreement for East Coast Highway Traffic Signal Rehabilitation Project Design), the second highest bidder has been selected as the recommended vendor. Deputy Public Works Director Thomas reported that the selection was made based on qualifications. He discussed a previous selection process for a traffic signal design project in which the most qualified firm was used but now staff is recommending that the contract be awarded to the second most qualified firm in order to allow the use of multiple consultants to do similar work. He indicated that price was not considered as part of the evaluation since the selection was based on qualifications, but the price was negotiated with the second most qualified firm and the price for the scope is within market rates for this type of work. City Manager Kiff added that staff tries not to isolate work with one particular consultant. Regarding Item 6, Council Member Daigle wondered if AP -1 is being applied objectively. City Manager Kiff addressed the selection process, noting that each firm's qualifications are reviewed and ranked. He reported that top ranked firms are then reviewed in terms of pricing and whether it is within market rates. He added that the process is also in compliance with State law. Council Member Daigle reported that a resident wrote to Council with concerns regarding the details provided in Item 11 (Planning Commission Agenda /Action Report for April 3, 2013) and referenced a sign at Camelback Street that was reviewed by the Planning Commission. Additionally, Council Member Daigle reported that Council has worked cohesively on the issue of compensation and requested information regarding budget comparisons. She addressed the Tidelands funds and asked for information regarding projected revenues, proposed expenses, and cost allocations. City Attorney Harp noted that the Brown Act does not prohibit general requests of this nature from being made. In response to Council Member Henn's questions, Deputy Public Works Director Thomas indicated that a biofilm screen is an earthen filtration method to treat runoff (Item 5 - Shorecliff Road Catch Basin Modification, Reef Point Biofiltration System, Los Trancos Creek Maintenance - C- 5287); reported that the City does not control the traffic signals west of Jamboree Road and that some timing has been implemented on signals to the east, but they are not all coordinated in a timing plan (Item Volume 61 - Page 118 City of Newport Beach City Council Study Session April 9, 2013 6). He added that the project will allow for coordination for signals east of Jamboree Road. In response to Council Member Henn's question relative to Item 12 (Newport Peninsula July 4th Parade and Festival Request for Waiver of Council Policy L -16 - Temporary Banners Extending Over the Public Right -Of -Way), City Manager Kiff indicated that the July 4th West Newport Safety Planning Committee meeting will be scheduled soon. 2. NEWPORT HARBOR ENTRANCE TIDAL GATE PRESENTATION City Manager Kiff reported that the same presentation was given to the Tidelands Management Committee. Council Member Selich introduced the item and noted that the Tidelands Management Committee has been looking at reconstructing old seawalls along Balboa Island as they reach their structural obsolescence. He indicated that one of the ideas was to implement a tidal control structure. Dr. Dale Berner, Ben C. Gerwick, Inc., provided a PowerPoint presentation to discuss a conceptual review of a tide control structure at the Harbor entrance. He presented information regarding his firm, including details of former projects, types of flood gates they have used, and advantages of using gates and off -site prefabrication. He addressed the Newport Harbor floodgate concept, the possibility of removing some of the seawalls, flooding and inundations, sea level rise, various global sea level rise scenarios, the National Research Council's (NRC) sea level rise recommendations for the west coast, and the timing of sea level rise protection and risk to the community. Dr. Berner stated that the floodgate solution may be easier to gain approval from the California Coastal Commission than raising seawalls. He reported that, as sea level rises, the tide also increases and addressed FEMA analysis and restrictions, the FEMA flood insurance rate map for Newport Harbor, survey results for the top of the Balboa Island seawall, tide valve locations in Newport Harbor and local elevations, risks of inundation, and possible mitigation. He detailed a process used. in the Netherlands of placing turf and clay top layers on lower areas and addressed FEMA risk areas and jurisdiction lines. He provided an overview of the proposed location and preliminary design considerations and values, as well as a conceptual proposal to use a 600 -foot pass bottom hinge gate barrier. In addition, he illustrated a 600 -foot pass, proposed tidal water - exchange cross- sectional areas, possible configurations, and a 400 -foot pass. In response to Council Member Henn's concerns about the Peninsula, Dr. Berner reported that grassy mounds or berms can be added in low -level Peninsula areas with minimal cost. Council Member Gardner referenced previous dredging where it was placed off -shore and believed that there will be opportunities for establishing berms in the future. She addressed the need for educating residents that berms may cause a loss in views, but may also protect their homes. She indicated that if an issue develops, the Coastal Commission will be less of a concern because it will not just be Newport Beach asking for protection, but rather the entire State or Nation. She addressed cost advantages to piecemealing the project. In response to Council Member Petros' questions, Dr. Berner discussed the operation of the gate and possible adjustments needed in the future, like scheduling arrivals and departures during high tides. In reply to Council Member Selieb's questions, Dr. Berner reported that if the City is satisfied with negotiations with FEMA, raised the seawall to +10 elevation, and used the current State guidance for sea level rise, the systems would become questionable by 2030 or 2035 as to whether or not they would be working. He pointed out that the tidal barrier would provide additional protection to +15 elevation for the same price. Mark Tabbert reported that everyone has the power to do something about climate change but no one is addressing it. He stated that a carbon tax will be implemented in the near future and believed that Volume 61 - Page 119 City of Newport Beach City Council Study Session April 9, 2013 it will make a difference. He spoke in support of lowering the carbon footprint for fixture generations. In response to a question by Lee Cassett about the effect of earthquakes on the gates, Dr. Berner reported that tidal barriers would not stop the tides and that there would be tidal fluctuations; however, there would not be any problems structurally if an earthquake occurred. Conrad Baumgartner believed that a consultant such as the presenter has self - interest in proposing this type of project. He believed that the issue should be considered slowly and referenced an article that indicates that the problem is growing at a much slower pace than originally projected. He presented a copy of the article. Jim Dastur questioned how much time it would take between now and when the gates would be operational. Council Member Selich stated that there is time to deal with all the questions, but believed that the matter should be considered in order to move forward. In response to Mayor Curry's question regarding timing, Dr. Berner reported that the permitting phase could take up to ten years, the design phase can take one year, and construction would take a minimum of three years. He also highlighted related costs. 3. BALBOA ISLAND AND FEMA/FLOOD INSURANCE ISSUES Building Manager /Chief Building Officer Jurjis reported that he asked FEMA to attend this evening, but they were unable to attend because of the sequestration. He utilized a PowerPoint presentation to provide a brief history, discuss the establishment of the Special Flood Hazard Areas affecting the City and the City's adoption of a Floodplain Management Ordinance. He reported that Balboa Island is the biggest area of concern in the City and pointed out other areas within the Special Flood Hazard Areas. He listed issues related to Balboa Island and explained how property owners of properties within the flood zone can obtain flood insurance. Building Manager /Chief Building Officer Jurjis reported that the City voluntarily participates in the National Flood Insurance Program (NFIP) and reported that it provides insurance to all participants. He addressed the purpose of the City's Floodplain Management Ordinance, approval by FEMA, amendments to the Ordinance, and Ordinance compliance factors; and further explained the concepts of substantial 'improvement, current value, and depreciation. In response to Council Member Selich's inquiry, Building Manager /Chief Building Officer Jurjis explained the basis for the determination of the average construction costs per square foot to be $300 /sq. ft. Mayor Pro Tern Hill suggested that if true construction costs are required to establish the average, a survey of ten contractors that build nothing but homes should be obtained in order to obtain accurate figures. Council Member Henn reported that his insurance broker reappraises his home every so often in order to obtain accurate construction costs. Building Manager /Chief Building Officer Jurjis reported that land is not included in the value and noted the need to depreciate the current value of the structure. Council Member Daigle reported speaking with the City's lobbyist who indicated that the matter was overhauled by FEMA in the past year. She indicated that the lobbyist volunteered to do an analysis. Building Manager /Chief Building Officer Jurjis affirmed that there were changes made to FEMA, but indicated that FEMA was unsure as to how the new laws would affect the City. Building Manager /Chief Building Officer Jurjis addressed the new depreciation schedule and presented pro forma examples between the old analysis and the new. He deferred to Arnold Mello from WNC First Insurance Inc. for a presentation relative to private flood insurance. Volume 61 - Page 120 City of Newport Beach City Council Study Session April 9, 2013 Arnold Mello, WNC First Insurance Inc., addressed private flood insurance, including elements considered in determining risk. He reported that the program is currently under suspension due to audits being conducted. He reported that each risk is considered individually and reported that his company has written flood insurance for Balboa Island homeowners. He reported that FEMA has established criteria for private flood insurance to be acceptable and addressed rates, noting that some of their rates have been lower than FEMA rates; however, private insurance is generally more expensive than FEMA. He reported that risks under FEMA are shared and reported on a special program set up for the City of Visalia. Building Manager /Chief Building Officer Jurjis addressed the process of opting out of FEMA and noted there is no prohibition for opting back in. Community Development Director Brandt added that, in order to maintain access to the FEMA program, the City's Ordinance will need to be updated when the Federal government requires updating. If the City decides to opt out., the Ordinance would need to be re- adopted at such time that it would opt back into the FEMA program. Building Manager /Chief Building Officer Jurjis further addressed possible next steps and related costs. Discussion followed regarding the possibility of establishing a special private underwritten program for every resident of Balboa Island. Council Member Gardner addressed the issue of having to raise homes. She pointed out that the FEMA program encourages homeowners to be flood averse. Mayor Pro Tem Hill stated that there are two different issues: how to protect Balboa Island from flooding and how to allow access to less costly flood insurance for residents. Council Member Selich added that the ability to do modest remodels to homes on Balboa Island became difficult under FEMA regulations. Building Manager /Chief Building Officer Jurjis reported that raising seawalls may change the flood zone map and added that, if the City opts out of the FEMA program, the entire City would opt out. He stated that, if there were a disaster due to flooding and the City participated in the FEMA program, there may be access to Federal funds. He added that, when homes are torn down or remodeled, the homeowner must comply with the requirements for higher elevations for the new /remodeled home. In response to Council Member Henn's questions, Mr. Mello reported that under the private program, homes were not required to comply with the new FEMA guidelines. He added that the same would apply to homes on Balboa Island and explained the factors associated with determinations of risk, He pointed out that private providers can make up their own underwriting rules. Conrad Baumgartner reported that he has been a licensed general contractor for many years and that construction costs exceed $300 /sq. ft. He added that a builder on Balboa Island is quoting $400 /sq. ft. He noted other issues related to costs and indicated that his private flood insurance rate is quite a bit Iess than the FEMA program. He distributed a letter for review by Council and reported that FEMA ignored that the jetty would have any effect on controlling storms, that Balboa Peninsula is a barrier island, and that the City has an existing seawall. Craig Ryffel reported that $300 /sq. ft. for remodel construction costs is reasonable, but that it would cost at least $400 /sq. ft. to build a new home. Don Abrams reported that the new guidelines are a huge improvement and thanked the City. He noted that only eight homes on Balboa Island are at the 9 foot level. He reported that he owns two homes on Balboa Island, received a new flood insurance bid from FEMA for $2,200 a year, and contacted a representative of WNC First Insurance Inc. who quoted $695 a year for both of his homes. However, he reported that when the application was submitted to Mr. Mello, it was rejected Volume 61 - Page 121 City of Newport Beach City Council Study Session April 9, 2013 because of the new guidelines and because his homes were not high enough. He further questioned the sincerity of WNC First Insurance Inc. Joe Panino questioned the depreciation schedule and suggested it may need to be considered for adjustments. Diane Bach believed that the FEMA program is punitive and took issue that it goes against preserving the older houses on Balboa Island. Dr. Dale Berner addressed whether the tidal barrier would lower the base flood elevation. He noted that this is dependent on whether the U.S. Army Corps of Engineers has certified it, but stated that it is possible. Tom Houston believed that this is an overreaction. He addressed improvements in dams and the Santa Ana River Channel and wondered why FEMA does not recognize that there is an existing seawall and a Harbor entrance. He questioned whether the FEMA guidelines are being applied equally elsewhere in the United States and stressed that the City does not have the same type of problem that occurred on the east coast or Gulf coast. Building Manager /Chief Building Officer Jurjis reported that FEMA did not consider the seawall height and indicated that the study was not a detailed study. Jack Northrop reported recently purchasing flood insurance for about one -third the cost of the FEMA policy and indicated that it was accepted by the lender when he refinanced his home. He questioned the benefits of the FEMA program compared to private insurance, and believed that the matter should be researched and that the City should consider withdrawing from the FEMA program depending on the results. Lee Pearl addressed problems with Balboa Island residents not being able to do improvements to their homes due to the FEMA guidelines and believed that the proposed changes are beneficial to residents. He thanked Council and staff for helping Balboa Island. Lyle Dawn commented on the cottages on Balboa Island and reported that his FEMA rates have gone up substantially. He stated that construction costs are higher than $300lsq. ft. and wondered why homeowners should be forced to comply with FEMA regulations if they opt for self- insurance. Terry Jansen commended Council and staff for reacting so quickly to the issue. He believed that, if the cost of construction is raised, it may cause other issues to go away where they may otherwise be exempt. Ann Mariette reported that she is a member of the CERT program and that issues of concern are earthquakes and liquefaction. In terms of flooding being a 100 year event, she believed that it may be prudent to discuss the issue of liquefaction with the Fire Department and asked if liquefaction is considered a flood. Jim Dastur referenced a staff report presented to the Tidelands Management Committee in March 2012, indicating that, according to 2010 tide projections, a 100 year flood would impact approximately 514 properties on Balboa Island and the number would, increase going forward. He addressed recommendations within the report relative to increasing the seawall and related costs, and asked if consideration is being given to raising the wall by six inches in the short term. Council Member Selich indicated that the new construction costs and depreciation schedule have helped, but stated that he would like to see if those figures can be increased. He noted that flood insurance rates are extremely high and believed that $50,000 would be a modest investment to Volume 61 - Page 122 City of Newport Beach City Council Study Session April 9, 2013 validate the FEMA study. He stated that, if the study results in an increase, the City would continue with the FEMA program. Council Member Gardner expressed concerns related to the Visalia issue where more properties were included in the flood plain. Mayor Curry reported that the City is in the FEMA program because it provides a means to flood insurance when there are issues with the market. He explained the reasoning behind the FEMA program and the toll it can take on taxpayers. He agreed with Council Member Selich's suggestion to retook at the formula in order to allow residents to perform improvements to their homes. Mayor Pro Tern Hill agreed and added the need to encourage the private insurance sector to provide flood insurance programs. 4. RESIDENTIAL LOT MERGERS Council Member Gardner reported that the aforementioned was a result of the Planning Commission addressing the issues on the Ocean Boulevard project. She suggested that the item be presented to the Planning Commission to develop recommendations prior to the item being presented to Council, It was the consensus of the City Council to have the item considered by the Planning Commission. III. PUBLIC COMMENTS - None IV. ADJOURNMENT - 6:16 p.m. The agenda for the Study Session was posted on April 4, 2013, at 4;30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building at 3300 Newport Boulevard; and on April 4, 2013, at 6:36 p.m. on the City Hall Bulletin Board located in the City Council Chambers vestibule at 100 Civic Center Drive. City Clerk Recording Secretary Mayor Volume 61 - Page 123