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HomeMy WebLinkAbout02/25/2014 - Study SessionCity Council Minutes Study Session February 25, 2014 - 4:00 p.m. 1. ROLL CALL Present: Council Member Gardner, Council Member Petros, Council Member Curry (arrived at 4:02 p.m.), Council Member Henn, Council Member Daigle, Mayor Pro Tom Selich, Mayor Hill II. CURRENT BUSINESS 1. Clarification of Items on the Consent Calendar - None 2. Southern California Gas Company Advanced Meter Project Jennifer Vaughn, Southern California Gas Company Public Affairs Manager, utilized a PowerPoint presentation regarding the Gas Company's Advanced Meter Project. She presented a description of the project and addressed background, computer access by residents to their gas usage on a next -day basis, installation of radios on meters, monthly bill versus hourly information, benefits of the program, and how the system works. She reported that no service will be lost while radios are being installed and that they will slightly change the dimensions of existing meters by adding a few inches to the face. She indicated that she will check on the dimensions of the radio and provide that information to Council. She also addressed information transmittals and specifications of Data Collection Units (DCUs). Council Member Daigle reported that she works in telecommunications, that the DCUs are highly controversial, and that the Gas Company cannot install a pole in residential areas of the City and asked how the project will work in Newport Beach. Ms. Vaughn presented a map of the City, indicating proposed locations for the poles. She indicated that, whenever possible, co- location on existing street lights is encouraged. She added that the Gas Company is doing everything it can to comply with the City's above- ground Ordinance. Council Member Daigle discussed practices in other cities and stated that this is an emerging and controversial issue. She asked if it was possible to rent space on City poles. City Attorney Harp commented on ordinances applicable to this matter and that rental fees would apply. He added that staff is in negotiations with the Gas Company to review proposals justifying a rent adjustment, as well as the possibility of sharing technology with other utilities. Council Member Daigle reported that most of her district has been undergrounding utilities and expressed interest in reviewing particular applications on the proposed sites to ensure there will be no issues with the installations. Ms. Vaughn reported that the Gas Company is working closely with staff to work out the issues according to what is best for the City. She added that the Gas Company is considering partnering with the City to have the DCUs also read water meters. Council Member Henn noted there are no sites proposed for the Balboa Peninsula, Lido Isle, or Balboa Island. Ms. Vaughn stated that the Gas Company is willing to listen to residents' concerns and, within limitations, have flexibility in terms of where to locate the poles. She noted the need for a redundant system, requiring that the meters be read by at least two DCUs, which may be Volume 61- Page 467 City of Newport Beach City Council Study Session February 25, 2014 placed within the boundaries of neighboring cities. She addressed Advanced Meter Radio Frequency, comparisons to different wireless technology, and contact information. George Schroeder commented positively on the modifications to electric meters by Southern California Edison (SCE) and noted other issues that must be taken into consideration in reviewing this matter. He added that one of the benefits is that there will not be people walking the neighborhoods reading meters. Jim Mosher commented on the proliferation of antennas, noting that every provider seems to need their own antennas when they should be making efforts to share antennas and infrastructure. He believed that the City's contract with CR &R will add to the number of trips required for waste collection and that the benefits of the Gas Company's program are being negated by the City's current waste collection program. 3. Public Piers Harbor Resources Manager Miller introduced Harbor Commissioners Paul Blank, Dave Girling, Doug West, and Duncan McIntosh. He reported that a presentation has been provided to the Harbor Commission, as well as the Tidelands Management Committee and deferred to Harbor Commissioner Blank. Harbor Commissioner Blank provided a PowerPoint presentation to address the Harbor Commission's objectives relative to public piers. He discussed their approach, steps taken, observations, amenities desired by boaters, areas of concentration for these amenities, and conclusions and recommendations. Council Member Petros asked how the revenues generated from residential piers compare with the costs of implementing the proposed recommendations. Harbor Resources Manager Miller reported that he will report back to Council with this information. Mayor Pro Tom Selich commented positively on the presentation. He agreed with the need for restrooms and suggested implementing signage so the boaters know the restroom locations. He noted the need to maintain finials, as well as installing finials on pilings where they are missing for improved identification of public piers. He recommended monitoring and maintaining the public dock located in the Rhine Channel which the City shares with Schock Boats and installing proper signage to ensure that it is available for public use when Schock Boats is closed for business. Harbor Resources Manager Miller reported that the City intends to refinish existing finials and replace and add new ones, as needed. Council Member Henn stated that the issue for him is how to best move forward with the recommendations. He indicated that it would be a good idea to determine what the proposals cost and figure out a way to include them in the budget. Harbor Resources Manager Miller indicated that he has begun the process and is now focusing on improving the aesthetics of the City's public piers, including new decking, hand rails, and finials. He added that they will be instituting a program where the piers are cleaned twice a week and deep cleaned quarterly or as needed. He stated that the City has budgeted funds for these improvements and added that, when they are deep cleaned, the water is captured. He reported that staff is underway toward implementing some of the recommendations and that plans are being made to reconfigure some of the floats next year. Additionally, in terms of new piers, the City is partnering with The Irvine Company's Cal Rec marina and going through the CEQA process. This will soon be presented to Council. He reported that Lido Marina Village is considering redoing their marina and there is a component in the plans for a public dock at Central Avenue. Volume 61 - Page 468 City of Newport Beach City Council Study Session February 25, 2014 Council Member Henn added that the Harbor Commission has a committee that is working on Lower Castaways and that a plan may move forward for a public pier there. Harbor Resources Manager Miller commented on the initial vision for Lower Castaways. Council Member Curry commended the Harbor Commission for its efforts, adding that this is the type of investment necessary for the City to continue to renew its economic resources for residents and visitors. Mayor Hill commented positively on the presentation and expressed his full support. He added that he is committed to working with staff to find the funds to install at least two public piers this year. 4. Priority Setting Presentations (RSS, Library, IT, Fire) - A Continuation from 1 -25 -2014 Recreation and Senior Services Director Detweiler provided a PowerPoint presentation to report on a recent Pickleball Tournament. She stated that pickleball is the largest sport actively growing within the United. States at this time, and four courts can be accommodated within one tennis court. She presented information regarding the Traveling Tidepool Mobile Interpretive Center, expansion of Senior programs, Citywide volunteer program, community youth center expanded programming, and expanded community -based special events. In response to Council Member Petros' question, Recreation and Senior Services Director Detweiler indicated that staff does a good job in determining the needs of the community and that, upon implementation of new programs and/or facilities, the demand is there. She noted that staff is looking for other venues in order to expand classes and programs. Council Member Petros commented on the concept of a west side community center and encouraged Council to focus on the needs of the entire community and for those areas that may not have the facilities that others do. Recreation and Senior Services Director Detweiler stated that, at the groundbreaking for Marina Park, a group approached her asking if another fitness center like the one at the OASIS Senior Center will be built in the west side. She let them know that staff is focusing on obtaining another facility to expand health and wellness services. Mayor Pro Tem Selich agreed with Council Member Petros' comments regarding the need for a west side community center, noting that the City is currently trying to decide on an appropriate site. Fire Chief Poster utilized a PowerPoint presentation to discuss improvements in the City's paramedic program. He reported that the Newport Beach Fire Department (NBFD) will continue providing the highest standard of customer service expected by residents and visitors. He presented a map of existing Fire Stations, as well as services and staffing provided at each. He added that paramedic services will be added to each Fire Station this year. Chief Poster addressed the importance of reducing response times and pointed out that the NBFD is the only department that has an ambulance available at each station for use, when needed. Additionally, he reported that the NBFD is refining the Active Shooter Program with the Newport Beach Police Department and exploring alternative destinations for non -acute patients. He discussed the launch on March 3, 2014, of PulsePoint, an application that will provide information regarding all the responses going on in the NBFD. He reported that the NBFD is continuing and expanding its Marine Operations and has partnered with Visit Newport Beach, Inc. (VNB) to continue "Ambassador" training to the City's 200 lifeguards. In addition, a consultant is evaluating the NBFD in order to reduce response times, inventory resources, and consider what allocations and efficiencies can be obtained. The report will be presented to Council within the next six weeks. Volume 61 - Page 469 City of Newport Beach City Council Study Session February 25, 2014 Council Member Daigle commented on radios for marine safety and asked regarding the state of the City's public safety communications. Chief Poster reported that the City is not in the broadband system yet, but is enhancing its existing infrastructure. The County of Orange will be changing its infrastructure to replace outdated equipment by 2018 and that there is currently a migration from older equipment to newer equipment. In response to Mayor Pro Tem Selich's question regarding coverage in areas such as Crystal Cove, Chief Poster noted that the upcoming report will identify gaps in the system and include areas for which recommendations have been formed, including areas within the City. At present, it is premature to release that information, but it will be presented in the report. Library Services Director Hetherton provided a PowerPoint presentation to address 2014 new amenities, resources, and programs. In response to Council Member Curry's question regarding the expansion, Library Services Director Hetherton discussed the benefits of expanding the Library in conjunction with the new Civic Center, and on how that has facilitated the expansion of programs and amenities. He commented on the use of the study areas located on the second floor. IT Manager Houston utilized a PowerPoint presentation, stating that IT is seen as a support for all the services provided by the City and that IT has been focusing on the road map set within its strategic plan. He addressed specific areas of focus, skilled internal IT experts, outside IT consulting assistance, new hardware, software partners, community connections, and specific highlights for the coming year. City Manager Kiff provided an update of Municipal Operations, including a refresh of older City parks. Mayor Hill, on behalf of Council, commented positively on the dedicated efforts of the IT Department in implementing improvements and noted that it is part of the backbone of a smarter, faster and smaller City organization. Regarding refreshing older parks, Mayor Pro Tern Selich discussed medians in the City and commented positively on staffs efforts relative to work being performed on Harbor Island Drive and other areas in terms of new irrigation systems and drought- tolerant plants. Council Member Gardner commented on the Water Quality /Coastal Tidelands Committee and reported that it will be working on prioritizing City medians. Jim Mosher commented positively on the plans and asked if these are things the community wants. He reported that, in some instances, the City Charter identifies specific bodies that provide additional oversight. He referenced the IT function and noted that, although there was citizen input in formulating the strategic plan, it is an area of large expenditure where there is currently no citizen oversight. He stated that IT has increasingly become the face of the City to the public and questioned leaving decisions entirely up to City staff. He believed that staff has made substantial changes to the City's website without public input and that Council should consider establishing a mechanism for that. In response to Mr. Mosher's comments relative to questioning how staff comes to conclusions about program needs, City Manager Kiff noted that staff receives feedback from the public in many different ways. He added that these are initiatives that come from the community and that a public meeting is not always the forum in which people communicate their needs. Volume 61 - Page 470 City of Newport Beach City Council Study Session February 25, 2014 Dr. Jack Skinner stated that he has been involved with Bay water quality issues for a long time and believed that there was going to be a discussion regarding supplying moorings in the Lower Bay with electricity and water. Mayor Hill clarified that the matter will be heard at the Regular Council Meeting (Item 10 - Water Taxi and Multiple Vessel Mooring System), Dr. Skinner spoke in opposition to the proposal, noting an earlier priority to establish the Bay as a no- discharge Harbor. He believed that the proposal goes a step backwards because more and more people will use the moorings, as well as living aboard. He recommended that Council abandon any effort to provide water and electricity to moorings. 5. Business License Requirements and Real Estate Agents Business License Supervisor Navarrete utilized a PowerPoint presentation to discuss business license tax requirements for real estate agents. She provided an overview of the Newport Beach Municipal Code requirements, tax rates, associated revenues from real estate agents and brokers, evaluative factors, California State law, Federal standards and law, legal precedent, examples of standard agreements between brokers and agents, agencies with independent contractors in the City, and the results of a survey of other cities in terms of how they handle such agreements. She addressed other considerations and frequently asked questions and responses. In response to Council Member Dean's question, Business License Supervisor Navarrete reported that the revenue paid by brokers to the City is not broken out per broker per agent. David Girling, Newport Beach Association of Realtors (NBAOR), provided. a PowerPoint presentation addressing the NBAOR's position and points supporting the NBAOR's position for the elimination of the Business License Tax (BLT). He referenced a letter by Attorney Tom Jacobson which was presented to the City of Huntington Beach in 2008, when they considered eliminating the tax, which states that the Business License Tax should be eliminated because agents are not true independent contractors. Mr. Girling provided details in support of the NBAOR's position. Additionally, he noted that there is a precedent where other cities in the area have removed the Business License Tax and that most of the cities that have reviewed the matter have repealed it. In response to Council Member Gardner's question, Mr. Girling believed that this tax is unfairly levied on real estate agents. Council Member Curry believed that this is a good time to reconsider the matter and to change the way the City handles this. He noted that real estate is a key industry in the City since it drives the value growth of the real estate market in Newport Beach. Mayor Pro Tern Selieb noted that the City of Long Beach eliminated the tax and believed that it seems to be an unfair way of taxation. He commented positively on the points listed in the Jacobson letter and stated that he found no problems relative to the matter in cities that have eliminated the tax. He expressed his support to move ahead and amend the ordinance. In response to Council Member Gardner's question, Mayor Pro Tom Selich stated that the group is unique and referenced the points listed in the Jacobson letter. Council Member Petros agreed with Mayor Pro Tem Selich and stated that this is a good time to continue the discussion. He commented on the Jacobson letter and noted that the City has a section in the Municipal Code for "Real Estate" but it does not distinguish between a broker and an agent, making it likely that the City is double- dipping relative to the implementation of the tax. He expressed support for moving this matter forward. Volume 61 - Page 471 City of Newport Beach City Council Study Session February 25, 2014 Council Member Henn expressed concerns regarding brokers -of- record, noting that he /she would pay the same tax as an agent. In response to his inquiry regarding determining business license fees for businesses with a large number of employees, Business License Supervisor Navarrete reported that businesses are required to apply and report to the City how many W -2 employees they have. Council Member Henn believed that, on that basis, brokers -of- record should be taxed on the basis of the number of agents that have nexus to their office. He indicated that he is not interested in changing regulations until that matter is properly addressed. He added that, if the City provides relief to individual agents, it should ensure that it provides the correct treatment for the broker -of- record and stated he would be interested in learning how other cities deal with the issue. He agreed with the need for more information in consideration of the matter. In response to Council Member Daigle's question, Business License Supervisor Navarrete reported that there are three other cities that allow the broker -of- record to pay on behalf of their agents and, if they do not choose to do so, the respective city charges the agent as an independent contractor. In Beverly Hills, the broker is responsible for paying a percentage based on the agents' commissions. Council Member Daigle asked regarding compliance with the IRS designation for "agents" as independent contractors. City Attorney Harp noted that the City has broad discretion in how it makes its classifications, so there should not be any issues. Council Member Daigle noted that independent contractors do not have lobbyists, is not a classified industry, and, therefore, have not followed up regarding this matter with other entities. She expressed agreement with the approach that either the broker pays or the agent pays. George Schroeder stated that the City is moving in the right direction and noted that a broker owns the business, but agents work for the broker. He listed related business license fees for the City of Orange compared to Newport Beach, and believed that the current system is not equitable and that changing it would be fair and reasonable. He suggested that, if changed, brokers should be charged the Business License Tax and charged for each agent that works under them. He submitted information and requested that Council change the ordinance to reflect that licensees working under a broker are not independent businesses and that they be exempt from being required to pay the Business License Tax. Jim Mosher noted that one of Council's priorities last year was to clean up the Municipal Code. He commented on the Code section dealing with Business Licenses and Regulations and stated that the uncertainty regarding how real estate agents fit into the Code is not the only uncertainty or problem with the Code. He commented on the difference between taxes and fees, and on specific areas of the Code that need consideration. Craig Batley, real estate broker, reported that agents have no rights to collect money or conduct business independently from a broker and that most brokers have agents sign an "HR Manual" relative to their policies, procedures, and scope of employment. He added that the average real estate agent in California makes approximately $35,000 per year. Mayor Hill commented on his experience as an architect and with independent contractors, noting that every time he had an audit, the State ruled that they were not independent contractors. Mayor Pro Tem Selich read Huntington Beach's determination regarding this matter. Council Member Henn reported that he will not vote on changes until he understands how the broker -of- record will be dealt with for taxation purposes. Volume 61 - Page 472 City of Newport Beach City Council Study Session February 25, 2014 Council Member Curry agreed with Mr. Schroeder's comments and reiterated that now is the time to consider this matter and make the necessary changes. III. PUBLIC COMMENTS INCLUDING PUBLIC COMMENTS ABOUT ITEMS ON THE CLOSED SESSION AGENDA Paul Dollies, Realtor, noted that some brokers do better than others and some do not, and spoke in support of Council changing the Code. In response to City Manager Tuffs earlier comment, Jim Mosher expressed appreciation for staffs responsiveness to the public's requests, but believed this is not the best way to run government since this dedicates resources to one individual request. He referenced the City Charter and stated that, in response to a citizen request, staff has the responsibility of having that request properly vetted through the appropriate commission. Mr. Mosher commented on a Closed Session Item relative to the review of the City Clerk's position and stated that the City Clerk and her staff have always been courteous and helpful to the public. He noted that the City Clerk reports directly to Council and is intended to be independent of other department staff, however, expressed concern that the City Clerk's Office has to rely on the City Manager for support, including IT, and has no public feedback as to how she is performing. He suggested placing a computer terminal at the City Clerk's Office counter for displaying documents to the public and noted that the agenda font is very small. City Attorney Harp announced that Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and proceeded to read each title. IV. ADJOURNMENT - 6:05 p.m. The agenda for the Study Session was posted on the City's website, on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive, and in the Meeting Agenda Binder located in the entrance of the City Council Chambers at 100 Civic Center Drive. on February 20, 2014, at 4:00 p.m. Mayor City Clerk .• .` Volume 61- Page 473