HomeMy WebLinkAbout01 - Minutes - AmendedCity of Newport Beach
City Council Study Session
November 12, 2013
and those administrative costs will be offset by what we would lose in revenue. He suggested
eliminating the buffer, except what is in the u- shaped dock area.
Council Member Henn reported that the City acts in a fiduciary capacity on behalf of the
State in managing the Tidelands and that the State Lands Commission manages pier rentals,
excluding Newport Harbor. He believed that it is unwise to go far from the methodology used
by State Lands and suggested keeping the 50% charge which is in line with their
methodology. He agreed that it is not about the revenue and addressed administrative costs.
He pointed out that the only change would be the elimination for not charging for the buffer
and stated that it would be a one -time exercise. He added that pier owners do not have
exclusive use of the buffer area, but that, since there is no boat on only a small percentage of
the piers and that the greater number of pier owners have boats that are tied to the pier 90%
of the time, effectively there is some exclusive use of water area around the pier. He indicated
that discounting it by 50% is a significant reduction in charges and agreed with the discount
as well as all of staffs recommendations.
Fred Barnes, President of the Lido Isle Community Association, referenced a letter submitted
to staff and highlighted points made in the letter. (fHe addr'es'sed other fees being paid,
including the increased Tidelands Fee since March 20,13,E and believed that adjustments
should be made retroactively. �� ` J�
Council Member Henn believed that adjus b \t>je' rate from commercial to residential
retroactively, would be appropriate in this case. /
Kevin Muldoon, Legal Counsel for tl e Claremont Institute, a property -right non - profit, read
from the Beacon Bay Bill regarding real; property parcels and added that until recently, the
Newport Beach Municipal Codef"case law, and legislation allowed for recreational piers to
exist in Newport Harbor without \any)rerits. He added that the Council is not bound to charge
rents, let alone, a fair market value rent. He stated that a fiduciary duty to charge rent does
not arise simply because the Stale.decided to change its policy.
Steven iBaric� Generals ouusel for the Newport Beach Dock Owners Association, thanked
Council for bringing the \issue forward and believed that the process has raised more questions
than it answer\He addressed the arbitrariness of the process and discussed issues related to
the rown Act!, He B reported that the fact - finding process of litigation will commence soon and
hoped that a favorable resolution can be generated.
John Gunderson�asked if the permits for the docks and moorings are the same over Tidelands
and if the mooring length of time to be traded can be extended, noting that it is presently at 7
years and it should be 1.0 years. He asked whether it can be extended in perpetuity and noted
effects on mooring values.
(IC ristine Thagard attorney for Newport Beach Dock Owners Association, reported that
lenders are looking for a commitment on price and terms, and noted that Council can change
the price at any time which has created uncertainty in the marketplace. She looked forward
to working with Council and agreed with the need for a simple application process and hoped
that confiscation issues are eliminated.
Patricia (Newton, mooring permittee, referenced the analysis she submitted after the
workshop as presented in the staff report and noted omissions and inconsistencies in the
report. She believed that application of fair market value is not used consistently, mooring
fees were not based on appraisals, and there are variations as to what is deemed a gift of
public funds. She indicated that residential pier permitees are now able to charge rent and
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believed that this is a gift of public funds. She reported analyzing mooring charges versus
residential piers and relayed the results of her analysis. She asked that Council eliminate the
use of the marina index as a basis for assessing mooring fees in favor of a Tidelands appraisal
and to reinstate the Harbor Commission recommendation with. respect to allowing mooring
permit transfers. She also requested a written answer relative to the inconsistencies in the
report.
Pete(Pallette ) commented on the expense of the Civic Center and increased debt taken on by
the City without voter approval. He expressed opposition to the fee and the permit that
allows the City to confiscate property for a cause. He asked for the definition of "cause" and
believed that Council is undermining real estate values. He addressed property taxes already
paid by residents and stated that Council should listen to all its constituents. He asked that
Council renegotiate the matter.
Stacya ine implored Council to allow the transfer of
Brian C( uzouman)suggested giving half of the $80,000 back'to'the�niooring owners who made
the improvements so that they can maintain them' Li'egard ng'Piers, he requested zero
transfer fees between families and commented on enfoicement_of the buffer area. He stated
that he is encouraged with Mayor Pro Tem Hill's,comme_nts1 and that, regarding docks, the
process is aggravating because there is a dispar yt '.\ e,/added that residents now have
addiOtional liability for the buffer area and wondered, how it will be handled.
Scott Peotter commented on pre
the City is enforcing it, and that
of leasehold rights in perpetuity
ied that the State owns the Tidelands,
no rights. He suggested the possibility
Harbor Resources Manager Miller- addressed the request for more time to sellta. mooring and
reported that there are seven i�years left and that Council direction allows for two mooring
transfers within a 10 year period. He reported that a mooring permittee is required to
maintain their moormgs.every two years and cannot rent their mooring individually for a long
term but can do so up to 30 days at a time. He addressed transfer fees within the family and
noted that the City does �not- charge a fee for inspections.
In response tl /o C \un�c�i,Member Gardner's question regarding confiscation by the City, Harbor
Resources Manager Miller reported that the language was removed from the permit.
Regarding the alleged gift of public funds, City Attorney Harp reported that the City has an
obligation to charge fair market value for the use of the property.
Council Member Gardner noted that a', future Council can make changes, addressed outreach,
and noted that while Council may not necessarily agree, Council is listening.
Council Member Petros agreed with applying residential rates to the Lido Isle Community
Association/Yacht Club. He reported being compelled by Mayor Pro Tom Hill's comments
regarding the issue of the buffer and believed that the City should not be charging for it and
it should be restricted to the property that is static and stationary. He expressed interest in
learning about the projects that the harbor fees will be funding and knowing what leasehold
rights would be versus risks of possessory interest.
Council Member Henn reported there never was a private property right for water owned by
the State. He agreed with removing the language regarding the potential for confiscation as
well as offering a 5 or 10 year permit and stated that there never was a surety in terms of the
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value of the water. He reported that what the City is proposing is only making it better as it
relates to the issue of the ability to finance an abutting residential property. He commented
on the 10 year transfer right period and on his belief that there is no additional personal
liability relative to the proposal to change the buffer area.
City Attorney Harp reported that how the rent is calculated should have no impact on the
overall liability for the buffer area.
In response to Council Member Henn's question, Harbor Resources Manager Miller reported
that he can speak with the Harbor Patrol about nuisance activity and, if someone calls, they
can be asked to assist residents. Council Member Henn stated that it would be beneficial for
Harbor Resources to meet with Harbor Patrol regarding nuisance enforcement. Regarding
the comments from the Claremont Institute, City Attorney Harp reported that the passage
read from the Beacon Bay Bill was selective and deals with other circumstances. He added
that there are other provisions within the bill that require the City to charge fair market
value. C`\
Mayor Curry expressed support for the re-(
Association/Yacht Club and noted that language
I-Ie believed that the 5 and 10 year option will -
feedback received in previous meetings. /\
Following discussion regarding charging
Council to not do so.
Harbor Resources Manager N
Ordinance at its next meeting.
/of Lido Isle Community
scation should be removed.
that this action reflects the
buffer zone, it was the consensus of
the intent is to return to Council with an
In response to City Manager Kiffs question, Council agreed with charging the full rate for u-
shaped dock areas.
3. CIVIC CENTER COMMUNITY ROOM NON - PROFIT USE. (100 -2013]
Recreation and Senior Sbrvices Director Detweiler introduced Recreation Supervisor Harmon
who manages\the ✓icuCenter Community'o She provided a PowerPoint presentation,
addressing room rental prices and fees, costs associated with managing the Community Room,
direct and indirect costs, cost recovery, and applicable policies according to the Newport Beach
Municipal Code Section 3.36 and Council Policy B -13. She presented an overview of
Community Room and Lawn rates and levels of rates, rentals to date, allowances for one- and
two -hour rentals and non - profit room rental rates and market comparisons
Council Member Gardner stated that the City is fair relative to its rental rates and discounts
offered to non - profits and youth - serving organizations, which was supported by the consensus
of Council.
III. PUBLIC COMMENTS, INCLUDING PUBLIC COMMENTS ABOUT ITEMS ON THE
CLOSED SESSION AGENDA
Jim Mosher commented on Harbor charges and noted that, when Council enacted the Ordinance
changing the permit structure, it changed Harbor Code 17.60.060(E) with no explanation.
Commercial uses under the Code are exempt from provisions requiring involvement of the owner or
long -term lessee in abutting property. He added that the City Attorney agreed with the need for
clarifying language and commented as to the intent in relation to applying for a permit and believed
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that the matter needs to be revisited. Additionally, he commented on Closed Session and the City
Attorney's role and indicated that in this agenda, there is an item relative to Council Member Henn
entering into negotiations with the City Attorney about salaries and benefits. He expressed h`op_e)
that City Attorney Harp will not be advising Council on the matter.
Council Member Henn confirmed that City Attorney Harp will not be participating in Item 2.13 of the
Closed Session agenda.
Council Member Gardner requested clarification of the issues raised by Mr. Mosher in the future.
City Attorney Harp reported that Council will recess into Closed Session at this time and read the
issues to be discussed, as listed on the agenda.
IV. ADJOURNMENT -Adjourned to Closed Session at 5:35 p.m.
The agenda for the Regular Meeting was posted on November 7;`2013, at 4:00 p.m on the
City's website; on November 7, 2013, at 4:00 p.m. on the City all Electronic Bulletin
Board located in the entrance of the City Council Chambers ati100 Civic Center Drive;
and on November 7, 2013, at 4:00 p.m. in the Meeting Agenda Binder located in the
entrance of the City Council Chambers at 100 Civic Gent��iive.
City Clerk
Mayor
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Secretary
City of Newport Beach
City Council Minutes
November 12, 2013
will also ensure that there is a full traffic impact analysis and a complete parking assessment.
Mayor Pro Tem Hill reported representing the Mayor at Mariners School for Arbor Day, along with
Principal Pamela Coughlin and Park and Tree Superintendent Dan Sereno. He reported meeting with
the third grade class and presented a proclamation declaring October 23 as Arbor Day. He added that
( _Lyn_nette Short, California Department of Forestry and Fire Protection temployee presented the Tree
City Award to the City and the Year Growth Award for the City's street trees.
Mayor Curry reported participating in the Mayor's Forum in Yoe su South Korea, a Newport Beach
Sister City. He reported meeting many Mayors, including the Mayor of Kabul, Afghanistan.
Additionally, he reported participating in the California Economics Mayors Summit in Los Angeles and
hosted Former Mayors at the Newport Beach City Hall. Mayor Curry noted participating in the
Veterans Day program at the Orange County Fairgrounds, along with the U.S. Postal Service which
presented a new Medal of Honor stamp. He announced that the City Clerk's Office will be accepting new,
unwrapped toys for children of troops, DVDs for troops, and gift cards for troop families through
Operation Christmas. �� 1
XII. PUBLIC COMMENTS ON CONSENT CALENDAR
Jim Mosher noted that Item 7 (Professional Services Agreement with' GMU Geotechnical, Inc. for Marina
Park Specialty Inspection and Material Testing Service's) and Item-8'(Information Technology Consulting
Services - Amendment No. One) were on a previousage'nda\ and) asked why they were pulled from the last
agenda. Regarding Item 4 (Woody's Wharf Use Pemit`Apneal - 2318 Newport Boulevard -Use permit
No: UP2011 -01.0 - Variance No. VA2013- 006/(IA20,1\1- 055)), he noted that Council will be making a
fording that the CEQA exemption used by the P- .lanning Commission for approving a number of the
elements of the project was inappropriate and wondered if by doing so, Council is invalidating the
Planning Commission's action indenendent.of whether Mr. Diamond is successful with his procedural
challenges. Regarding Item 12 1
Drive and Westcliff Drive Street
to the medians and landscaping ,
XIII. CONSENT CALENDAR
0
.vices Agreement with Civil Works Engineers for Dover
'roject), he stated that staff is planning possible changes
public input will be sought.
1. IMINUTES FOR THE OCTOBER 22, 2013 SPECIAL MEETING AND REGULAR
MEETIN6:)[100 -20131 Waive reading of subject minutes, approve as amended, and order
filed. Mayor Curry abstained on this item.
2. READING OF ORDINANCES. Waive reading in full of all ordinances under
consideration, and direct the City Clerk to read by title only.
B. RESOLUTIONS FOR ADOPTION
3. APPROVAL OF MEASURE M2 EXPENDITURE REPORT. [100 -20131 Adopt
Resolution No. 2013 -74, A Resolution of the City Council of the City of Newport Beach
Concerning the Measure M2 Expenditure Report for the City of Newport Beach, approving
the M2 Expenditure report, substantially to form, subject to technical revisions in
conformance with Orange County Transportation Authority (OCTA) guidelines.
4. WOODY'S WHARF USE PERMIT APPEAL - 2318 NEWPORT BOULEVARD - USE
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XIV
13. PROFESSIONAL SERVICES AGREEMENT FOR ONGOING COMMISSIONING
SERVICES FOR CIVIC CENTER WITH GLUMAC (C- 4527). 1381100 -20131 a)
Approve the Professional Services Agreement with Glumac, and authorize the Mayor and
the City Clerk to execute the Agreement; and b) approve Budget Amendment No. 14BA -021
appropriating $40,000 from the unappropriated General Fund balance to M &O Account No.
3140 -8244.
E. MISCELLANEOUS
14. PLANNING, COMMISSION AGENDA FOR NOVEMBER 7, 2013. [100 -20131 Receive
and file.
15. APPOINTMENT OF DISTRICT 1 ALTERNATE MEMBER TO THE AVIATION
COMMITTEE. 1100 -20131 a) Waive the portion of City \Council Policy A -2 (Board,
Commission, and Committee Appointments), which requires an appointee to be a qualified
elector of the City; and b) confirm Council Member Mike Henn's nomination of Donald
Hecht as the District 1 Alternate Member to the Aviation\Committee.
16. ACCEPT 2011 HOMELAND
VOLUNTEER EMERGENCY
Approve Budget Amendment No.
Security in Revenue Account N
Department Special Department,!
Calendar, except for the item re
Council Member Daigle on Item
Mayor Pro Tern Hill on Item 4,
Selich on Item 11. C-1-
The motion carried by the
Ayes: Council MembE
Member Selich,
call vote:
'GRANT PROGRAM FUNDS FOR
NIT ID BADGE SYSTEM. []00 -20131
)gmm
zg a $12,600.00 grant from Homeland
and appropriating $12,600.00 to the Fire
account, 2335 -8200
v Council Member Selich to approve the Consent
ig the abstentions by Mayor Curry on Item 1 and by
Council Member Selich on Item 4; and the recusals by
Hill on Item 10, and Council Members Gardner and
Council Member Petros, Mayor Pro Tom Hill, Mayor Curry, Council
nber Henn, Council Member Daigle
17. VISIT NEWPORT BEACH, INC. (VNB) ANNUAL MARKETING PLAN, FINANCIAL
STATEMENTS AND BUDGET AND THE NEWPORT BEACH TOURISM BUSINESS
IMPROVEMENT DISTRICT (NBTBID) ANNUAL REPORT (C- 5177). [381100 -20131
Council Member Gardner believed that the Visit Newport Beach (VNB) Marketing Plan is a
calendar, not a plan, and that there is nothing in the plan that helps Council evaluate the impact
of what VNB is doing. She suggested including a request that within three months, VNB will
return with goals by which to measure itself to help Council evaluate it. Council Member Henn
noted that there is a summary of goals for the upcoming fiscal year at the beginning of the
presentation.
Mayor Pro Tom Hill commented on the goal of increasing occupancy rates.
Motion by Council Member Gardner, seconded by Mayor Pro Tern Hill to a) authorize a
one -time waiver of the timelines provided in Section 6 of the Agreement; b) review VNB's
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Performance Standards/Marketing Goals Report; c) review VNB's Annual Marketing Plan; d)
review, approve and /or modify VNB's FY 2013 -2014 budget; e) review VNB's FY 2011.2012 and FY
2012 -2013 Audited Financial Statements; and f review and approve the FY 2013 -2014 NBTBID
Annual Report.
Council Member Daigle agreed with the need to have measurements and questioned that more
than 33% of revenue is coming from The Irvine Company (TIC) hotels (The Island Hotel and the
Pelican Hill Hotel). She wondered how to know whether those revenues are derived from TIC or
VNB efforts and how to measure it.
Gary Sherwin, President and CEO of Visit Newport Beach, commented on the development of the
Marketing Plan. He reported that funding from Transient Occupancy Tax (TOT) goes toward
supporting the overall marketing of the City and leisure marketing, but does not include group
marketing. Group marketing is done through the Tourism Business Improvement District (TBID)
which depends on VNB to market the City to raise the profile and the TBID has a sales force that
makes the deals and books the room nights. He added iEat both of the programs are
complimentary and dependent of each other. He stated that there are many elements in the
document that include productivity standards, including afineaaurement of tactics.
In response to Council Member Gardner's
meet with City staff and the hospitality i
that some things can be measured but oth
it can and assigns metrics based on the b(
offered to return to the Marketing Comm
input.
Council Member Henn noted
oriented rather than result -ori
the response. /\
Sherwin stated that his firm is happy to
stablish performance metrics, but added
reported that VNB tries to measure what
the hospitality community. Mr. Sherwin
.e goals and return to City staff for their
ce metrics in the document are effort -level
integrating some result- oriented metrics into
In response to CoLndil-�NIember Daigle's question regarding ways to identify Return on
Investments (ROI), Mr� Sherwin reported that the best way to do that is to assign a value as it
pertains to group business (meetings and conventions).
Jim Mosher commented- positively on VNB supplying reports and referenced the City's obligations
regarding reviewing -approving, and modifying the fiscal year budget. He questioned how the
budget can be approved, referencing an audited expenses report and discrepancies.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tern Hill, Mayor Curry,
Council Member Selich, Council Member Henn, Council Member Daigle
XV. PUBLIC COMMENTS ON NON - AGENDA ITEMS,
Stephanie Barger expressed her appreciation for the dog park and suggested extending the hours due to
daylight savings for those that work past 5:00 p.m.
Laura Curran commented on the City building a new pocket park in Corona del Mar, thanked Council
Member Selich for his efforts, and reported that the project is entering the planning phase. She
suggested that the City showcase California native plants and asked that Council reconsider the matter
in order to showcase the State's natural beauty.
George Schroeder invited the public to join a community forum, on November 13, 2013, at 5:30 p.m. in
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the Community Room where the guest speaker will be Newport Beach Police Chief Johnson who will
speak about community safety in the City.
Denys Oberman inquired regarding contingency funds for the Civic Center Project, noting that Council
Member Petros had previously requested an accounting of the project and that the public would also like
the opportunity to review it. Additionally, she requested a status update of the old City Hall site and its
reuse.
XVI. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES
XVII.
Council Member Daigle reported that Vector Control is busy with Lower Big Canyon as malaria
mosquitoes are in the area. She stated that Vector Control is spraying in the area and has made a
proposal to try to eradicate it. Additionally, she reported attending a Southern California Association of
Governments (SLAG) meeting and added that Costa Mesa Council Member Genis is interested in serving
on SCAG when Council Member Daigle's term is up. She reported ihat1the focus at the meeting was
climate change and commented on the State's efforts and policies: She commented on the City's
Affordable Housing Task Force and deleting the inclusionary housing zoning, and asked about the status
of the matter. 7 (` i„ U/
Community Development Director Brandt reported that the 'Housing Element was approved with the
deletion of the program and that staff has a follow -up action to -amend the Newport Beach Municipal
Code to remove the Affordable Housing inclusionary\progra�from the document which is scheduled for
the City Council meeting of November 26, 2013. �
Council Member Selich reported on a recent ineetingW the Land Use Element Amendment Advisory
Committee where it reviewed policies in\the General Plan and discussion was continued to the next
meeting of December 2, 2013. %/
Council Member Gardner referenced Council/ Member Daigle's comments regarding mosquitoes and
__
added that the area has been(sedimented; and has approximately 1 -2 inches of water. She reported that
z
there is nothing that Vector'ControPcan_do except spray and that they are proposing to fill in the area to
divert the runoff around it directly into the bay. Additionally, the plan would also alleviate a selenium
problem which is harmful to birds and fish.
Council Member Peti•8s: reported hosting an Open House for the Bicycle Master Plan Oversight
Committee and thanked those who participated.
18. APPROVAL OF MASTER FEE SCHEDULE (COST OF SERVICES PORTION) AND
CHANGE IN SUBSIDIES. [100 -2013]
City Attorney Harp reported that this is a situation where the entire City Council potentially has a
conflict of interest, adding that fees have never been charged relative to bringing up matters for
review. The process has never been documented in the City's Municipal Code and what is being
proposed is to document that Council Members, Commission Members, Board Members or
Committee Members do not pay fees when they call up matters in the public interest from a lower
body or lower official. This would only apply to matters within the purview of the specific group as
part of their official duties. City Attorney Harp stated that, because these could impact Council
Members, the entire Council has a potential conflict of interest. He added that the Fair Political
Practices Commission (FPPC) provides that, when a majority or quorum of Council Members
cannot be obtained, the Code provides for a "game of chance" to see which Council Members will
consider the item. He referenced a set of black and red cards which Council Members will draw
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Council Member Selich, Council Member Henn, Council Member Daigle
20. RESOLUTION ESTABLISHING UNDERGROUND UTILITY DISTRICT NO. 22 - BALBOA
BOULEVARD BETWEEN WEST COAST HIGHWAY AND 22ND STREET. [100 -2013)
Mayor Pro Tem. Hill recused himself from this item since he ownsproperty within 500 feet
of the subject property.
Public Works Director Webb utilized a PowerPoint presentation to provide a brief history,
including previous considerations by and directions from Council, Utility Underground District
(UUD) areas, Rule 20A Funds for undergrounding utilities, and Municipal Code requirements
regarding residential and business service connections. He addressed UUD No. 22 design and
boundaries, and possible design modifications as the project moves forward. He also presented
photos of existing conditions, details of a cost analysis, recommendations, and a tentative
schedule.
In response to Council Member Petros' questions regarc
the item and its effect on two other Rule 20A projects,
the two other projects will be delayed because they w
Petros noted the need to build up reserve funds. �\
City Manager Miff reported that staff
discounted rate from other cities and will
Council Member Petros stated that
Boulevard landscaping efforts, are
with the help of the advisory panel; i
Council Member Henn
that there are three pr(
Council Member
Boulevard.
a five -year mortgaging for
,ector Webb reported that
e funds. Council Member
for the ability to buy the funds at a
ncil Member Henn's leadership, this and the Balboa
efforts to revitalize the west side. He added that,
be a remarkable change on the Peninsula.
vely on the efforts being made on the Peninsula, noting
on the agenda tonight.
on the amount of investment being made along Balboa
Mayor Curry bpened'the public hearing.
Paulo dRr, der,(representing neighbors and friends on River Avenue, reported sending a letter of
interest to Public'Works Director Webb requesting to incorporate River Avenue through Balboa
Boulevard in the project. Public Works Director Webb stated that staff looked into the matter, but
does not believe it qualifies for Rule 20A Funds as it does not meet the criteria. He added that it
may be suitable for Rule 20B Funds and that he will be happy to follow -up with Mr. (D_eRidd
about the possibility of establishing another district.
Mr.,DeItid commented on the possibility to save time and money by implementing the projects
at the same time and using some of the volume of work.
George Schroeder thanked Council and staff for the landscaping improvements that will occur with
the undergrounding. He reported that this stretch of Balboa Boulevard is in worse shape than
what Council had in the 1970s and 1980s because they removed parking.
Hearing no further testimony, Mayor Curry closed the public hearing.
Motion by Council Member Henn, seconded by Council Member Selich to a) adopt
Resolution No. 2013 -82, A Resolution of the City Council of the City of Newport Beach Establishing
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and pass to second reading on November 26, 2013.
The motion'carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Mayor Pro Tom Hill, Mayor Curry,
Council Member Selich, Council Member Henn, Council Member Daigle
26. APPROVAL OF AGREEMENT FOR TREE MAINTENANCE SERVICES (C- 5648). [38/100-
2013]
Deputy Municipal Operations Director Pisani provided a staff report, addressing the history of the
matter, expiration of the current contract, issuance of a Request for Proposal (RFP), and scope of
work required. He stated that two proposals were received in response to the RFP and addressed
scoring, evaluation of the proposals, and results and. review of references by staff. He stated that
the lowest qualified bidder was found to be Great Scott Tree Sery (GSTS).
In response to Council Member Gardner's questions(regarding) the technical score, Deputy
Municipal Operations Director Pisani clarified that iit(w s not�rejated to the quality of tree
trimming, but on what was stated in the RFP regarding their•) listed experience. However, after
review of GSTS' work, staff felt confident with their-level of expertise.
Council Member Pettus commented on the 'dventory of trees and the current deficit, and asked
what the allocation is for the efforts to plank "trees. \Deputy Municipal Operations Director Pisani
reported that the RFP required that the vendor would need to be able to plant 500 trees per year
and remove up to 300 trees per year.
Patrick Mahoney, President of West Coast (Arborists (WCA), thanked Council for allowing the
A
company to serve the City for tliellast' /20 years and requested that the City rebid the RFP. He
noted that WCA has provided service -to the City without raising the price in 20 years, with an
excellent safety record. He\ad�dressed -the pricing score and reported that there was no definition
for work times on the specification sheet nor was there quantities listed. Additionally, they did not
believe that palm trees `ere included nor was root trimming. He added that the contract will cost
the City $300,000 more a annually over what the City is currently paying WCA.
Jim Mosher believed thaVMr. Mahoney has raised interesting questions and asked if thought was
given to in- sourcing/ the service. He reported that the City is paying for the cost of service plus a
profit, and suggested going through the same exercise as the City did for the trash contract.
Deputy Municipal Operations Director Pisani reported that the proposals were due on September
26, 2013, and that, from the time the bid was issued to the due date, WCA had no objections to any
part of the RFP. He added that two proposals were received, seven firms attended the pre -
proposal meeting and, after the bid due date, the Parks Superintendent called the other five
attendees who indicated they could not compete. Additionally, he stated that GPS software was
required, which those companies did not have.
In response to Council Member Gardner's question regarding the City paying $300,000 more for
the service, Deputy Municipal Operations Director Pisani reported that previous prices were based
on 1993 prices.
Municipals Operations Director Harmon noted the City will be paying $300,000 more for the C,STS
contract; however, if the contract was awarded to WCA, it would be paying approximately
$800,000 more. He reported working with Mr. Mahoney and that there were no questions from
WCA prior to submission of their bid. The proposal from WCA was signed by Mr. Mahoney,
indicating that he understood the terms of the proposal. He added that WCA has done a great job
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dirty and clean MRF.
Jessica Susolik commented positively about Rainbow Environmental Services, adding that they
are employee -owned and are consistent with the environmental values of the City.
Garth Sutton asked Harbor View Elementary School parents to stand. He reported building a
fully- sustainable home and addressed the value of recycling. He believed that the best company to
do the job in consideration of the environment is Rainbow Environmental Services and added that
he wants a company that can educate the community. He asked Council to consider Rainbow
Environmental Services.
Barry Allen asked that staff explain why there are such extreme differences in the amount the
City will be paid for use of its facility. He reported that the transfer station contract is separate
and suggested that, if the whole idea for outsourcing is to save money, the City should renegotiate
or approve a contract with Rainbow Environmental Services!He reported reading all of the
documents and none indicated how much the City is currently paying for in -house trash service.
Council Member Henn pointed out that it is suited clear in tithe contract that "City approval"
means City Council approval. � s
Jack Shaw spoke on behalf of Rainbow Erivironmen`a�Services and commented on his
background. He believed that organizations compete through their policy, culture and values and
reported positively regarding Rainbow Environmental Services.
Nancy Skinner thanked Council for tieing sensitive to the issues, especially in terms of their
commitment to the City's employees. She commented on the importance of recycling and stated
that she is impressed with Rainbow Environmental Services' capabilities.
Bill Camarillo, President and C�EO,of Agromin, commented on his company's management of
organic waste stream andl stated\the�fmportance of having vision and being prepared for the
future. He reported that organics make 30 -40% of waste and that they partner with Rainbow
Environmental Services`to proc se organic waste. He addressed diversion versus recycling bills
and spoke in support of Rainbow Environmental Services.
Jody McKay icommente'd positively on Rainbow Environmental Services' impact on the
communities theyserve)and listed the company's contributions in making a positive social impact.
She reported that they constantly contribute, the principals are accessible, and they are a company
with a conscience and heart.
Annemarie du LeBohn, Corporate Responsibility Strategist, commented positively about Rainbow
Environmental Services and addressed their corporate responsibility. She added that they find
solutions for all their waste streams, including e- waste.
Dr. Janette Ganard, Professor of Corporate Social Responsibility, commented positively on the
capabilities of Rainbow Environmental Services, their corporate social responsibility and their
impact on the community. She noted that the company is employee -owned and has a low turnover
rate. She added that Rainbow Environmental. Services understands the needs of the City's
residents and deserves the City's support.
Stephanie Barger noted that many of the City's residents want to recycle or are already recycling
and commented on the need to be a zero -waste community and put together a zero -waste plan to
exceed the State mandates. She addressed the importance of recycling and noted that Rainbow
Environmental Services' priority is recycling, but CR &R previously opposed a recycling system in
the City.
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November 12, 2013
John Ashton of Lido Isle' addressed the low bid and stated that the City is passing up an
opportunity to immediately improve its environmental focus.
Dan Boyd commented on outsourcing and spoke positively about Rainbow Environmental
Services. He added that he is not convinced that the bidding process has been as transparent as it
could be and urged Council to delay its decision for no more than 30 days to make sure that it is
choosing the right company. He suggested having the matter reviewed by the City Attorney's
Office to make sure that staff has done a stellar job in the process and has been transparent.
Jon Spotts reported that South Africa and Pennsylvania are already recycling. He stated that a
40% residential diversion rate is unacceptable and that the City should strive for more, be
progressive, act responsibly, and do the right thing.
Nick(Froehlrchich President of Harbor View Dads, spoke
of Harbor View Parent/Faculty Organization (PFO),
biased. He added that Newport Beach should lead and
is not always about the lowest bid, but quality, responsi
Rainbow Environmental Services' customer service and
Denys Oberman commented on the $15.8
another look at the numbers and do a like -
State will move to AB341 in 2014 and bel
provider that will help the City comp
Environmental Services is qualified to d'o,th
Joe McAulkle stated that his
to encourage recycling and he
s wife who is the President
the satisfaction survey is
ate mandates. He stated it
ice. He spoke in support of
to the environment.
a,uags and encouraged Council to take
s. She stated that it is likely that the
City should not wait but commit to a
mandate. She added that Rainbow
him to defend our environment. He urged Council
the City's objectives.
George Schroeder stated that he - believes in recycling and pointed out that staff stressed that they
will receive the same level -of service they are currently receiving. He expressed concerns with the
City mandating recycling and commented positively on all three firms being considered. He spoke
positively on the capabilities of CR &R and urged Council to make sure that residents receive the
same level of service. U
`\ V
Francisco Esp' ` a, Rainbow Environmental Services owner /employee, commented positively on
his experience (ass an employee of the company and asked Council to consider Rainbow
Environment Services as its service provider.
Portia Weiss encouraged Council to look closer at the numbers and thanked Council for
considering the matter.
Jason Pitken stated that private enterprise is better- suited to provide these services than the
government. He reported being the Trash Ambassador to Harbor View Dads and touring the three
facilities that submitted proposals to the City. He reported that his group agreed that Rainbow
Environmental Services would be the best fit for the City, believing that the City is currently
charging residents $1 million per month in recycling fees to process the waste by CR &R with a
40% diversion. He added that the City of Huntington Beach charges nothing and is achieving a
75% diversion rate with Rainbow Environmental Services as their provider.
Mayor Curry took issue with Mr. Pitken's reported costs and stated that the City charges
recycling fee but trash service is free, whereas the City of Huntington Beach charges a trash fee.
Council Member Daigle referenced a recent article in the Orange County Register that indicated
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City of Newport Beach
City Council Minutes
November 12, 2013
the City of Huntington Beach is one of the highest in the County.
City Manager Miff reported that the $3 monthly fee charged to Newport Beach residents is a
recycling fee and that most people in the City pay nothing beyond that. Huntington Beach has a
private firm that does both, and residents are charged $19 per month.
Mr. Pitken urged Council to take this opportunity to reward high performance standards of
efficiency.
Moah Turrender commented on sustainability and in support of Rainbow Environmental Services.
She reported that Rainbow Environmental Services and Agromin has closed the loop between
waste -to -soil practices and added that the model that Rainbow Environmental Services has today,
will be replicated by waste haulers.
Andrea Ayres urged Council to stay open to residents' per
best service, but asked that it not be about the bottom
enhanced what they were offering and changed their bid, s
the matter. 6
State Assemblyman Travis Allen spoke in
diversion rates, and noted that they are best
noted that she wants the
She believed that CR &R
icil to work hard to assess
Environmental Services and on
of trends and legislation.
In response to Mayor Curry's questions, Assehmlymani Allen noted that one of the reasons for the
vi
process is to outsource trash service and-IZa\\bow\Envuonmental Services has offered to provide
jobs to the City's trash haulers.
Mayor Curry noted that the other, two firms also offered City employees jobs and that the
employees noted they would rather work'for the City. He added that, even if the City hires
Rainbow Environmental Services\ Cit�mployees can stay with the City or choose to work for the
chosen provider. \
Jim Mosher believed that •iDthe City decides to transition to outsourcing for automated trash
pickup, staff should do more-outreach. He referenced a recent contract signed by the City for an
outside consultant to help with community relations efforts. He addressed the accuracy and
reliability of the gnformation received regarding diversion in that it was presented as 9.6 pounds
per home per day and-noted that Mr. Snow correctly pointed out that it is pounds per person per
day. He reported that the City relied on a single consultant to review proposals and believed that
the process has knot been totally transparent. Additionally, he commented on a past Council
meeting where Council directed staff to obtain Mr. F,Joe Sloa_n's opinion of Sloan Vasquez and that
no information has been provided regarding same.
Mayor Curry noted that Mr. (Sloan)was speaking in support of one of the bidders and was contacted
but stated that, if he was not going to be paid, he was not going to do any analysis. Municipal
Operations Director Harmon added that Mr. Sloan did contact staff and expressed confidence that
HF &H was qualified to make the findings that they made.
Tom Baker addressed the cost of the current contract in the Newport Coast area and wondered
why it can be done cheaper under the proposed contract.
Council Member Henn stated that there are approximately 30,000 households in the City that are
charged the $3 recycling fee which equates to approximately $900,000 per year, not month.
Furthermore, there are no other charges compared to what the City of Huntington Beach charges.
He noted that there have been dozens of testimonials on behalf of Rainbow Environmental
Services, but that none offered facts to the effect that the performance of the other proposers would
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City of Newport Beach
City Council Minutes
November 12, 2013
be significantly lower for the contracted services than Rainbow Environmental Services. He
reported that Council's decision should depend on a set of objective facts, based on independent
surveys and analysis, that the three providers are capable of doing what the City requires and that
the decision is relatively simple. Since the City is arguably already achieving the diversion rates
that would be likely mandated for 2020, it does not make sense for taxpayers to pay an extra $1
million a year for this service today. He expressed support for CR &R:
In response to Council Member Gardner's question, Municipal Operations Director Harmon
reported on the costs for trash service in Newport Coast and'noted that it is $2 less than the
current proposalCw—hch-Oincludes the City's transfer station to offset costs. He added that there are
parts of Newport Coast that are challenging.
Council Member Gardner addressed the $900,000 difference between CR &R and Rainbow
Environmental Services and that Rainbow's proposal is $7.5 million more over a seven year term.
City Manager liiff added that the City is at 60 -70% diversion.onrniore� and that, although there is a
great value in recycling, the City does not need it at that I - el t this time.
ri
Council Member Gardner reported that the City is fax ( %fr\om having azero -waste program and
noted that no matter who is chosen, the City will saye,money, tr ash services needs to be as high as
water quality, and that CR &R has not been allowed to respond. She added that CR &R may also
have a school program and stated that she would like more information on the benefit of not
having a landfill. She indicated that there are �still thin things that need to be answered and that she is
willing to postpone the item another two,weeks�\
Mayor Curry noted that all of the provides are - capable; but this is not a popularity contest, and
that the City wants to provide quality service at a competitive price. He added that there has been
no evidence submitted that any of'th� jp viders collect trash better than the other or that there
will be a material difference�dn the diversion rate. He confirmed that recycling will be voluntary
and believed that the choice is Uear:--,/
Motion by Council Member Henn, seconded by Mayor Curry to a) authorize Mayor Curry to
sign the Residential Solid'Wasie Collection and Recycling Services Agreement, in substantially the
same form as the-agreement in the staff report; and b) authorize Mayor Curry to sign the Transfer
Station Operator 7_7 gree ent; in substantially the same form as the agreement in the staff report.
Substitute Motion by Council Member Daigle to award Ware Disposal a portion of the
business. The substitute motion failed for lack of a second.
Mayor Pro Tom Hill stated that this has been the toughest decision he has been called upon to
make. He thanked staff for the process, noting that it has been thorough and transparent. He
noted that the City is a unique town and that quality of life is on the top of the list. He stated that
he has not changed his position and is not supportive of outsourcing. He stated that there is a
responsibility to balancing the quality of life with administering a cost- effective organization. He
requested that the maker of the motion include that; if adopted, Council would receive a semi-
annual accounting from staff that would be a comparison of actual costs to projection so that a
measurement can be made that the City is .meeting its financial goals. It not, he noted that there
are provisions in the contract to allow changes.
Council Member Henn stated that he does not feel compelled to do a semi - annual report due to the
annual budget process, and noted that there will be an 18 -month roll out period. Mayor Curry
added that the Quarterly Business Report (QBR) will also provide this information.
Council Member Henn affirmed that Council has studied the issue thoroughly
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