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HomeMy WebLinkAbout05/13/2014 - Study Session / Regular MeetingCity Council Minutes Study Session and Regular Meeting May 13, 2014 I. ROLL CALL - 4:00 p.m. Present: Council Member Gardner, Council Member Petros, Council Member Curry (arrived at 4:30 p.m.), Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill II. STUDY SESSION SSI. Clarification of Items on the Consent Calendar Regarding Items 4 and 5 (Adoption of Resolution of Intention to Renew the Corona del Mar and Newport Beach Restaurant Association Business Improvement Districts), Council Member Gardner indicated that she will be pulling those items for separate consideration and discussion during the Regular Meeting. Regarding Item 13 (Disestablishment of the July 4th West Newport Safety Planning Committee), Council Member Henn stated that he supports the proposal as long as staff continues to work effectively with the citizen's committee. In response to Council Member Henn's question regarding Item 15 (Russo and Steele Collector Automobile Auction Banners), City Manager Kiff reported that the fee waiver is part of the recommended action and added that this is an economic development opportunity for the City. Mayor Hill believed that this is a return on the City's investment as far as encouraging the event in the City. SS2. Review of the FY 14 -15 Proposed Budget, Including CIP Update [100 -20141 City Manager Kiff reported that he and Finance Director Matusiewicz will present the item together, and presented a summary of the overall budget. City Manager Kiff and Finance Director Matusiewicz addressed General Fund revenues and expenses, discretionary reserve levels, what makes up discretionary reserves, consolidating some reserves into contingency reserves for simplicity, and risk management. Regarding revenues, City Manager Kiff and Finance Director Matusiewicz addressed property taxes by sector, where property taxes go, assessed valuation growth, sales tax breakdown, sales tax trends year -to -year, Transient Occupancy Tax (TOT), and trends and total revenues. Relative to expenditures, City Manager Kiff and Finance Director Matusiewicz addressed salaries, benefits, and capital improvements. Council Member Petros requested that percentage changes year -to -year be included in future presentations. City Manager Kiff and Finance Director Matusiewicz addressed maintenance and operations, debt service, and total expenditures. They also presented details about pension costs, the employee's Volume 61 - Page 548 City of Newport Beach Study Session and Regular Meeting May 13, 2014 share of normal pension costs, rising pension costs, changes in full-time positions, and trends and position changes. Discussion followed regarding tidelands revenues and expenses. Police Chief Johnson presented the Police Department's budget update and addressed the Computer Aided Dispatch/Records Management System (CAD /RMS), the old IT structure, the new IT structure, CAD /RMS capabilities, prisoner realignment (AB 109), and Department's Crime Suppression Unit. Brief discussion followed regarding crime sweeps and recidivism rates Fire Chief Poster provided Fire Department budget information, addressing fire suppression, expanding healthcare provider services, types of calls received, improving response times and Advanced Life Support (ALS) intervention, vehicles, staffing, and additional staffing requested. Discussion followed regarding qualifications for a Medical Director and specific staffing requests. In response to Council Member Petros' question, Fire Chief Poster reported that patient care forms are filled out electronically at the scene and that insurance reimbursement forms are processed by an outside contractor. Community Development Director Brandt provided information regarding the Community Development Department. She addressed building permit valuations, contracted positions, continuation of contracted services, changing a part -time training Code Enforcement position to a full -time position, the Newport Dividend program, Land Use Element Amendment, study areas, and the Local Coastal Program Implementation Plan and schedule. Discussion followed regarding projected activity for permits. Recreation and Senior Services Director Detweiler provided information regarding additional and expanded senior programs, Community Youth Center (CYC) expanded programming, expanded special events, and fire ring education and enforcement. City Manager Kiff noted the last two presentations are parts of the budget that are affected directly by participants, adding that participation has increased and, therefore, the City is expanding programs to keep up with demand. He reported that 15% of the City's total budget is participant - driven. City Manager Kiff summarized the proposed budget and Finance Director Matusiewicz addressed next steps and the schedule for future meetings. Council Member Gardner referenced the Capital Assets Schedule and the Lower Castaways parcel relative to the historical costs and requested clarification. City Manager Kiff reported that the parcel was acquired at no cost but that the City is required to have the property appraised and recorded at that value at the time of acquisition. Council Member Gardner suggested noting that the amount is not the purchase price but rather the property value. Additionally, she commented on the decrease in use of reclaimed water and City Manager Kill reported that staff will check on this and report back to Council. Council Member Gardner commented on Harbor Resources and suggested providing an explanation regarding substantial differences year after year. Volume 61 - Page 549 City of Newport Beach Study Session and Regular Meeting May 13, 2014 City Manager Kiff reported that all budget related documents are available on the City's website. He introduced the next topic and reported that the City Attorney has provided recusal recommendations to Council Members. Council Member Gardner recused herself from the Tot Lot Resurfacing on Bayside Drive project since it is within 500 -feet of her home, the Citywide Street Slurry Seal project and the Citywide Sidewalk, Curb and Gutter project as the areas have not been specifically defined and may be within 500 -feet of her home. Council Member Petros recused himself from Alley Pavement Replacement project as areas have not been specifically defined and may be within 500 feet of his home. Council Member Daigle recused herself from discussions regarding the Eastbluff Drive project since the project is within 500 -feet of her home. Council Member Henn recused himself from discussions regarding the Lido Fire Station Replacement, the Via Lido to 30th Street project, Newport Boulevard132nd Street project, Newport Boulevard Landscaping, and the Newport Boulevard Water Main Replacement project, due to, in some cases, the location of his home or because of a consulting relationship he has with a business in the Via Lido Plaza. Mayor Hill recused himself from discussions regarding Newport Boulevard Regional Traffic Signals, Mariner's Mile Highway Configuration and Land Use, Newport Boulevard Landscaping, Semeniuk Slough, and Turf Rep laeement/Irrigation Retrofit as he owns property within 500 feet of those projects. Public Works Director Webb provided details of the Capital Improvement Program (CIP), addressing a recap of the 2013 -2014 CIP and goals, CIP funding history, workload indicators, projects currently under construction, projects nearing completion, projects currently delayed, and others. He addressed continued progress being made and how projects are selected. Council Member Henn noted that the City is very well planned and noted it continues to add better planning. He commended staff for its work in this effort and noted that the City is proactive rather than reactive. Public Works Director Webb noted the intent to also address Council priorities. Mayor Hill noted that the need for dredging is continuous and stated that he would like to see numbers on if the City owned its own dredger and barge, and the possibility of offering dredging service to residents at a reduced cost. Council Member Gardner reported that the Harbor Commission has looked at the matter and suggested deferring this to them. Public Works Director Webb addressed the Proposed 2014 -15 CIP, including categories, total budget including new and re- budgets, project portfolio, facilities, streets and drainage, arterial streets, local streets and alleys, 15th Street /Balboa Boulevard reconstruction, streetlights, storm drainage, and street landscape projects. Mayor Pro Tom Selich noted that the Newport Boulevard Landscaping should continue to Balboa Village rather than Balboa Boulevard. Public Works Director Webb addressed transportation projects, including signal synchronizations, bicycle lanes, parks, harbors and beaches. Discussion followed regarding conversion to pickleball courts to be done between seasons Volume 61 - Page 550 City of Newport Beach Study Session and Regular Meeting May 13, 2014 Public Works Director Webb presented details of water quality and environmental programs, noting that many are grant- funded. He addressed water system projects, wastewater system projects, miscellaneous projects, and the CIP budget summary. Additionally, he noted that there is a lot of public and private development and reported on the MacArthur Boulevard Slope Landscaping Enhancement project, adding that Council direction is needed. He stated that there is a possibility that the area will be dedicated to the City and addressed funding requirements. Mayor Pro Tern Selich noted this is the last segment that needs landscaping. Discussion followed regarding ownership of the property and the possibility of dedicating it to the City. Council Member Henn expressed his support of the item. Council Member Gardner asked when detailed information regarding the Harbor Capital Fund will be brought to Council. City Manager Kiff reported staff will provide it at a future meeting. Council Member Daigle stated that, as long as the area will be dedicated to the City, she will support landscaping along the slope of MacArthur Boulevard at Big Canyon. Council Member Henn commented on the increases in dock fees and asked that staff show in the budget how the increment of those fees will be spent in the Harbor. City Manager Kiff noted the location of the capital expenditures planned within the document. Council Member Gardner requested clearly distinguishing the capital expenditures. Council Member Petros expressed support for the MacArthur slope landscaping, discussed the significance of the signal synchronization and modernization plans, and commented positively on the City's increase in seeking out competitive funds from the Orange County Transportation Authority (OCTA). Council Member Daigle commented on cycling and noted that the OCTA will be more involved in the future. City Manager Kiff encouraged additional input from Council. Bernie Svalstad, Chair of the Corona del Mar Business Improvement District (CdM BID), commented on the Corona del Mar entry project and noted that the item is in the budget but is not budgeted. He reported that the CdM BID does not have the funds for the project and stated that Council will need to decide whether to proceed with it or not. Council Member Petros emphasized that the Corona del Mar entry was not relegated at the expense of the West Newport projects, but was placed on hold until issues related to parking in that area was addressed. Jim Mosher noted that, while there is a reduction in the size of City staff, there has been an increase in the use of consultants. He also discussed the conservative debt level that the City has, believing the reason debt has been incurred is to finance City facility replacement and commented on the interest the City will pay on the debt. City Manager Kiff clarified that the professional and technical services line items in the budget do not equate to consultants, but rather for suppliers of needed professional services. He stated that the facility plan is just that, a plan, and it is not the City's intention to execute the entire plan, but is adjusted each year. He emphasized that one cannot look at the finances today and make an assumption about debt and interest ten years from now. Volume 61 - Page 551 City of Newport Beach Study Session and Regular Meeting May 13, 2014 Mayor Hill noted that long -term assets are paid with long -term debt. III. PUBLIC COMMENTS Jim Mosher referenced City links, such as www.connectnewportbeach com, and believed that it is difficult to determine the correct public representation of the City. He believed the subject needs Council attention and referenced Council Policies D -5 and D -6. City Attorney Harp announced that Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. The City Council adjourned to Closed Session at 5:50 p.m. IV. CLOSED SESSION A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Deputy City Manager; Negotiators. Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Lifeguard Management Association (NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Employee Association (NBPTEA); and Part - Time Employee Association of Newport Beach (PTEANB). B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8) Property: Parking Lot at 608 East Balboa Blvd., and 209 Washington Street, Newport Beach, CA 92661 Agency negotiator: Dave Kiff Negotiating parties: ExplorOcean, LLC Under negotiation: Instruction to negotiator regarding price and terms of payment for lease. C. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION (Government Code § 54956.9(d)(2)): 1 matter V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill Volume 61 - Page 552 City of Newport Beach Study Session and Regular Meeting May 13, 2014 VIII. CLOSED SESSION REPORT City Attorney Harp announced that the City Council will be going back into Closed Session at the conclusion of the Regular Meeting. IX. PLEDGE OF ALLEGIANCE — Council Member Curry X. INVOCATION - Mr. Frank Carpenter XI. PRESENTATIONS Proclamation Designating the Month of May as "Poppy Month" Mayor Hill called Kendall Madsen, Auxiliary President for Newport Harbor, and presented a proclamation acknowledging the month of May as "Poppy Month ". Ms. Madsen introduced outgoing Miss Poppy Rachel Heidemann and incoming Miss Poppy Taylor Howard. Ms. Heidemann recited the poem, "In Flanders Field" by Lieutenant Colonel John McCrae. Ms. Howard distributed poppy boutonnieres to each Council Member. Proclamation Designating the Week of May 18 as "National Public Works Week" Mayor Hill presented a proclamation to Public Works Director Webb and his staff designating the week of May 18, 2014, as "National Public Works Week ". Public Works Director Webb expressed his appreciation to Council and the citizens of Newport Beach for their support. XII. NOTICE TO THE PUBLIC XIII. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Council Member Daigle displayed photographs of various areas and projects throughout the City, including the Uptown Newport site, a road - widening project between the City of Costa Mesa and the City of Newport Beach, landscaping on Bristol North and South, the restoration projects at Big Canyon, and the constructed wetlands project. She also addressed an upcoming 5K run at Eastbluff Drive. She added that many of the efforts have been almost a decade in the making and commented positively on the improvements. Council Member Henn announced a Balboa Village Advisory Committee (BVAC) meeting on May 14, 2014, at 4:00 p.m. at ExplorOcean and listed items on the agenda to be discussed. Additionally, he reported attending the Newport Harbor Yacht Club opening day party, commented positively on the event and expressed appreciation to all of the City's yacht clubs for maintaining an active harbor throughout the year. Council Member Curry reported participating in the opening day at Newport Harbor, Balboa and Bahia Corinthian Yacht Clubs, and commented positively on the events, and added that the traditions help make the City special. He also announced that his grandchild is due in August and will be here in time for the November election. Council Member Petros reported on a recent meeting to consider possible locations for the West Newport Community Center. He added that there is momentum to investigate planning and site selection for the Center that would have amenities similar to the OASIS Senior Center, discussed the Volume 61 - Page 553 City of Newport Beach Study Session and Regular Meeting May 13, 2014 two sites under consideration, stated that the input received was well- thought and well- received, and he encouraged the public to participate in future meetings. Additionally, he reported that the Dover Drive closure for the Sanitation District work is having the potential to move traffic in the southbound direction to Irvine Avenue and into the neighborhoods at the time that many children ride their bicycles to school. He asked City Manager Kiff to have Traffic Division or the Police Department look into the matter and provide encouragement or enforcement to ensure safety. Mayor Pro Tom Selich reported that the Selich Family is expecting another grandchild in July, reported on attending the American Legion Yacht Club, Balboa Yacht Club and Bahia Corinthian Yacht Club opening days, announced that the Annual Balboa Island Art Walk will be held on May 18, 2014, from 9:00 a.m. to 5:00 p.m., and the Balboa Island Parade will be held on June 1, 2014. Mayor Hill reported attending the Balboa Yacht Club opening and reported traveling to Ensenada, Mexico to receive the boats coming in from the 67th Annual Newport to Ensenada Race. He added that Ensenada does an excellent job in hosting the Americans participating in the race. Additionally, he reported that he will attend the Balboa Island Art Walk and will be presenting the first Mayor's Award for the best piece of art and encouraged residents to attend. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR City Manager Kiff noted receiving an email from Planning Commissioner Tucker regarding Item 3 (Adoption of the Records Retention Schedule) and the possibility of retaining Planning Commission meeting audio tapes indefinitely and noted that staff is amenable to doing so should Council concur. Council indicated a consensus in favor of making the change. Jim Mosher suggested that staff create a summary of items on the Consent Calendar so that residents would know which items are passed. Regarding Item 3, he stated that he was pleased that Council accepted the amendment to maintain Planning Commission meeting audio recordings indefinitely and hoped that Council would consider the importance of retaining the recordings of other City meetings, as well as facilitating access. He commented on Item 6 (Resolution Supporting Submission of Grant Applications under the OCTA Measure M2 Tier 1 Environmental Cleanup Grant Program), noting that it is not clear if the money will be used to landscape medians on Irvine Avenue and Jamboree Road with California drought - tolerant plants. He believed that funds are being committed with little or no public outreach and that the Parks, Beaches and Recreation Commission should have been consulted on the matter. Regarding Item 15 (Russo and Steele Collector Automobile Auction Banners), he took issue with the agreement, believed that this does not comply with Council Policy L -16 related to the use of City streetlights for banners, and added that the event may not be consistent with the existing Coastal Development Permit. In response to Council Member Daigle's question regarding Item 6, City Manager Kill reported that the matter is to request authorization to submit the grant application and does not bind the City to accept the money or develop a project. He added that the design has yet to be determined. XV. CONSENT CALENDAR A. READING OF MINUTES AND ORDINANCES 1. Minutes for the April 22, 2014 Study Session and Regular Meeting [100 -2014] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. Volume 61 - Page 554 City of Newport Beach Study Session and Regular Meeting May 13, 2014 B. RESOLUTIONS FOR ADOPTION 3. Adoption of Records Retention Schedule, Authorization for Destruction of Certain City Records, and Amendment to City Council Policy A -11 [100 -2014] Adopt Resolution No. 2014 -35, A Resolution of the City Council of the City of Newport Beach Adopting a Records Retention Schedule, Authorizing Destruction of Certain City Records, Amending City Council Policy A -11, and Rescinding Resolution No. 2011 -18, as amended. Council Member Daigle voted "no" on this item. 6. Resolution Supporting Submission of Grant Applications under the Orange County Transportation Authority (OCTA) Measure M2 Tier 1 Environmental Cleanup Grant Program (CAP15 -0039) [100 -2014] Adopt Resolution No. 2014 -38, A Resolution of the City Council of the City of Newport Beach Authorizing and Supporting the Submission of Grant a Application Proposal for Funding Under the Orange County Transportation Authority (OCTA) (Measure M2) Environmental Cleanup Tier I Grant Program. Mayor Mill recused himself from this item since he owns property within 500 -feet of the subject project. 7. Corona del Mar State Beach Parking Lot Rate Change (to comply with a recently - issued Coastal Development Permit No. 5 -13 -0507 for pay stations) [100 -2014] Adopt Resolution No. 2014 -39, A Resolution of the City Council of the City of Newport Beach Amending Resolution 2013 -33 to Modify the Parking Rates for the Corona del Mar State Beach Parking Lot. C. CONTRACTS AND AGREEMENTS 8. Police Facility HVAC Replacement Project -Award of Contract No. 5542 (CAP14 -0003) [381100 -2014] a) Approve the project plans and specifications; b) Award Contract No. 5542 to K +J Air Conditioning, Inc. for the Total Base and Additive Bid Price of $268,012.00 and authorize the Mayor and the City Clerk to execute the contract; and c) Establish an amount of $26,800.00 (approximately 10% of total bid) to cover the cost of unforeseen work. 9. Police Department Contract Psychologist - Professional Services Agreement, Contract No. 5813 [381100 -2014] Continue the item to the May 27, 2014 City Council meeting. 10. Traffic Signal Modernization Project Phase 6 (San Joaquin Hills Road and Newport Coast Drive) - Approval of Equipment Purchase Contract (C -3456) with Econolite Control Products, Inc. (CAP14 -009) [381100 -2014] Approve the Purchase Contract with Econolite Control Products, Inc. of Anaheim, California for purchase and installation of advanced traffic signal control equipment for Phase 6 of the Traffic Signal Modernization Project, at a not to exceed price of $147,083.64, and authorize the Mayor and City Clerk to execute the Agreement. D. MISCELLANEOUS 12. Planning Commission Agendas for the May 8, 2014 Study Session and Regular Meeting [100 -2014] Receive and file. Volume 61 - Page 555 City of Newport Beach Study Session and Regular Meeting May 13, 2014 13. Disestablishment of the July 4 West Newport Safety Planning Committee 1100 -20141 Disestablish the July 4th West Newport Safety Planning Committee. 14. Budget Amendment to Appropriate Revenues and Expenditures for Adult Basketball League [100 -20141 Approve Budget Amendment No. 14BA -42 to increase revenue appropriations for account 4320- 5162 by $20,541 and expenditure appropriations for account 4320 -8380 by $18,255. 16. Request to Construct Existing Private Improvements within the Public Right of Way at 2704 Cliff Drive [100 -20141 a) Waive City Council Policy L -6, Private Encroachments in the Public Rights -of -Way, to allow stairs with handrail and a 36 -inch tall retaining wall encroaching up to 8 -feet into the Cliff Drive right -of -way; and b) Direct Staff to enter into an Encroachment Agreement with Owners and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. 17. Accept the Fireman's Fund Heritage Grant (C -5824) [381100 -20141 a) City Council accept the Fireman's Fund Heritage Reward Grant in the amount of $5,000 to purchase a forcible entry prop for training; b) Approve a sole source contract with Forcible Entry Equipment with an amount not to exceed $6,474 for the training prop and commercial cutting door (C- 5824); and c) Approve Budget Amendment No. 14BA -043 increasing revenue estimates by $5,000 in 2320- 4914 and appropriating those funds into Fire Department account 2320 -8200. 18. Appointment to the Aviation Committee [100 -20141 Confirm Council Member Keith Curry's appointment of Karen Rhyne as the District 7 Alternate Representative on the Aviation Committee, effective July 1, 2014. Motion by Mayor Pro Tem Selich, seconded by Council Member Council Member Curry, to approve the Consent Calendar, except for the items removed (4, 5, 11 and 15); and noting Mayor Hill's recusal on Item 6, and Council Member Daigle's "no" vote on Item 3. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR 4. Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in FY 2014 - 2015 1100 -20141 Council Member Gardner stated that, before making a decision on the $60,000, there should be at least a partial resolution regarding suggestions from the Business Improvement District (BID) as to changes they would like to make so Council can evaluate the matter as a whole. Public Information Manager Finnigan reported that the action tonight is to adopt a Resolution regarding the City's intention to renew the Corona del Mar BID, but noted that their budget and annual report is also presented for Council's consideration. She stated that, since additional information is being requested, the budget should be continued until such information is available. Motion by Council Member Gardner, seconded by Council Member Henn, to a) approve the Corona del Mar Business Improvement District FY 2013 - 2014 Annual Report, minus the budget Volume 61 - Page 556 City of Newport Beach Study Session and Regular Meeting May 13, 2014 component which will be further reviewed; and b) adopt Resolution 2014 -36, A Resolution of the City Council of the City of Newport Beach Declaring its Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2014 to June 30, 2015, and Fix the Time and Place of a Public Hearing for May 27, 2014. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill 5. Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in FY 2014 — 2015 [100 -20141 Council Member Gardner reported that she was a liaison with the Newport Beach Restaurant Association (NBRA) and it became clear that, in terms of its structure, some of the members were not benefitting from it. She believed that there has been discussion to make alterations and, before Council makes a final decision, she would like a report from the NBRA regarding plans going forward for changing their membership and making it more relevant. Motion by Council Member Gardner, seconded by Council Member Curry, to a) approve the Newport Beach Restaurant Association Business Improvement District FY 2013 — 2014 Annual Report, minus the budget component which will be further reviewed; and b) adopt Resolution 2014- 37, A Resolution of the City Council of the City of Newport Beach Declaring its Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2014 to June 30, 2015, and Fix the Time and Place of a Public Hearing for May 27, 2014, Jim Walker, President of the NBRA, commented on the transitions undergone by the Association, including the increased financial burden due to administrative costs versus using the money toward marketing. He stated that Council needs to decide if it wants an effective Restaurant Association that has an effective marketing program. He addressed a recent partnership with Visit Newport Beach (VNB) at the request of Council and stated that this has also added to the financial burden. He indicated that the Association is paying close to $40,000 for administrative costs and accounting. He addressed seats added to the community and restaurant arena, and stated that it is vital to the Association to promote restaurants. Mr. Walker reported that the Association is working on a plan to reach out to constituents and get more member participation, addressed challenges, and stated that the City has a responsibility to help them. He asked Council to approve the funds to help them with the additional financial burdens and added that, presently, the Association does not have the funds to sponsor Restaurant Week next year. Mayor Hill commented on impacts to last year's events by Council's postponement of the funding decision last year. Substitute Motion by Mayor Hill, seconded by Council Member Curry, to a) approve the Newport Beach Restaurant Association Business Improvement District FY 2013 — 2014 Annual Report; b) adopt Resolution 2014 -37, A Resolution of the City Council of the City of Newport Beach Declaring its Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2014 to June 30, 2015, Fix the Time and Place of a. Public Hearing for May 27, 2014; and c) waive the City administrative fees for this one (1) year to allow the Association the time to regroup. Council Member Henn stated he is sympathetic to the situation and stated that he would be interested in hearing about their plans going forward. Volume 61 - Page 557 City of Newport Beach Study Session and Regular Meeting May 13, 2014 Mr. Walker commented that the NBRA is in the process of finalizing its budget and that it is working with VNB to develop a plan, but is unsure as to how long it will take and what options to take. He added that he would like the budget finalized and returned to Council in the future with a plan to make the Restaurant Association more effective, which would also include restructuring the NBRA membership. Further, they are working on an outreach program to the NBRA members. Council Member Henn noted there has been a good -faith attempt on the part of the NBRA to work with VNB on marketing. Council Member Henn indicated that he will support the substitute motion. Mayor Pro Tem Selich expressed support for the original motion out of respect for Council Member Gardner's work and efforts with the Association. Council Member Gardner noted that she stopped attending NBRA meetings about a year ago, stated that the City has made a commitment for $40,000, but expressed concerns regarding the request relative to the $60,000 in administrative fees. She stated that she will not support the substitute motion. Mayor Hill stated that he was involved in the creation of the BIDS and that the City committed to handle the accounting at no charge. Council Member Gardner noted that the BIDS were unhappy with the City handling the accounting and that there was considerable discussion regarding the topic. Mr. Walker reported that, at one time, there were more BIDs, but stated that the NBRA never complained about how things were being run. Council Member Daigle reported that she will support the original motion and commented on the Food and Wine Festival. In response to Council Member Daigle's question, Mr. Walker stated that the Festival will take place on the Civic Center Green, and that they are being supportive in terms of marketing. Discussion followed regarding sponsorship of the Food and Wine Festival. Council Member Petros indicated that he will support Council Member Gardner's motion, adding that all Council is asking for is two weeks to understand what the future may hold for the BIDs. Mayor Hill noted that the information will not be available in two weeks. City Manager Mf£ stated that staff can better help put the information together knowing the importance of keeping to a schedule and making sure that the Association knows what their budget will be as of July 1, 2014. He emphasized that the money cannot be expended until Council approves the overall City budget, not the BID budgets. Council Member Henn stated that he would like to have a clear view as to how aggressively the City can help in collecting past due assessments and requested that this also be part of the City's presentation. Mayor Hill withdrew his substitute motion and Council Member Curry concurred. The motion carried by the following roll call vote: Volume 61 - Page 558 City of Newport Beach Study Session and Regular Meeting May 13, 2014 Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill 11. Marina Park Project - Building and Site Development (Bid Package 3) - Award of Contract No. 3897 -C (CAP09 -0070) [3811 00 -2014] Public Works Director Webb addressed the phases completed, the current phase, the Request for Proposals (RFP) process, bids submitted, and options regarding the Girl Scout House. He added that the Girl Scout Association decided they will not be joining the City on this project and addressed the lowest base bidder, bid amount, and recommendations. Motion by Mayor Pro Tern Selich, seconded by Council Member Henn, to a) approve the project drawings and specifications; b) award Contract No. 3897 -C (Marina Park Project - "Building and Site Development") to KPRS Construction Services, Inc. of Brea, California, for the total bid price of $18,748,000, and authorize the Mayor and the City Clerk to execute the contract; c) establish a contingency of $1,874,800 (ten percent) to cover the cost of unforeseen work; and d) approve Budget Amendment No. 14BA -045 transferring $15,581,000 from the unappropriated Major Facilities Financing Plan Fund to the Marina Park Fund, and appropriating that amount to the Marina Park Project, account 7411- C4002002. Council Member Gardner stated that there is an issue with the Girl Scout component and addressed the initial agreement that they could build their own Girl Scout House, but would have to wait until the City's project was completed. She noted that they have asked for help in coordinating the projects. Public Works Director Webb noted that the lease calls for them to wait until completion of the City's project, but there is a possibility to coordinate the projects, although it becomes complicated when two general contractors are working on the same site. He noted that staff is open to exploring possibilities. He added that the lease agreements would need to be changed moving forward. In response to Council Member Daigle's questions, Public Works Director Webb reported that staff is working with a Council working group and that costs will be submitted to them so Council can review significant change orders. He stated that the working group would not approve additional burdens, but would be kept abreast of change orders. Council Member Daigle suggested reporting to the entire Council on a monthly basis. Nancy Nygren, CEO of Girl Scouts of Orange County, commented on the organization's decline of the bid alternative that would have constructed the Girl Scout Leadership Center because it was $900,000 higher than the engineer's cost estimate. She believed that, through the organization's private bidding process, they will be able to receive a bid in line with the estimate and hoped that the City will authorize them to build concurrent with the City's construction pending the Girl Scouts acceptance of a bid. She asked Council to consider the request in the spirit of partnership and cooperation. Jim Mosher took issue with the Building Ad Hoc Committee and believed that the Committee has been making decisions since 2003 and is, therefore, a standing committee and not an ad hoc committee formed for a specific purpose or purely advisory. Council Member Henn noted that the working group is not the same group that Mr. Mosher was referring to. The motion carried by the following roll call vote: Volume 61 - Page 559 City of Newport Beach Study Session and Regular Meeting May 13, 2014 Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill 15. Russo and Steele Collector Automobile Auction Banners - Approval of Encroachment Permit N2014 -0182 [100 -2014) Council Member Gardner referenced Council Policy L -16, noting that Council can make exceptions to this Policy; however, expressed concerns with waiving the Encroachment Permit Fee. Council Member Curry stated that the event is a major generator of income to the City and that the City is fortunate to be able to hold the event. Council Member Gardner commented on other events that generate income for the City. Discussion followed regarding improvements to the economy related to such events. It was also noted that the City receives sales tax revenue from cars sold at the auction. Mayor Hill stated that the fee is a nominal expense and a goodwill gesture for significant revenue. Council Member Gardner commented on the need to be equitable and consistent in waiving fees. City Manager Ki£f stated he could provide information regarding other events for which the fee has been waived. Mayor Pro Tem Selich noted that the event brings a lot of revenue and publicity to the City. Motion by Council Member Daiale, seconded by Council Member Curry, to a) waive the provisions of Council Policy L -16 pertaining to the following: the requirement that the event is open to the public and free of charge, that the event is conducted by a non - profit corporation or organization, and that the event is co- sponsored by the City; b) conditionally approve Russo and Steele's request to install a maximum of 100 banners from Friday, May 23, 2014 through Monday, June 23, 2014 for the 2nd Annual Russo and Steele Collector Automobile Auction. Installation will be along East Coast Highway from Bayside Drive to MacArthur Boulevard; along Newport Boulevard from Via Lido to Hospital Road; along Jamboree Road from East Coast Highway to Eastbluff Drive - University Drive, and along MacArthur Boulevard from East Coast Highway to San Joaquin Hills Road; and c) authorize a waiver of the Encroachment Permit fee of $1,428.00. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill XVII. PUBLIC COMMENTS ON NON - AGENDA ITEMS Jim Mosher wondered if Council would consider waiving Council Policy L -16 if Tesla Motors or Fletcher Jones wanted to advertise their Year -end Clearance. Additionally, he commented on the Council working group discussing the Marina Park Project, noting that it may have been appointed by staff rather than Council and that it is strange that staff appoints Council committees. Mike Shepperd presented a book to Council Members entitled, "Corona del Mar — My Kind of Town." Mayor Hill reported that there is a significant difference between the Russo and Steele special event and a clearance sale by an existing business in town, noting that the latter has no effect on City hotels Volume 61 - Page 560 City of Newport Beach Study Session and Regular Meeting May 13, 2014 and restaurants, whereas the Russo and Steele event draws people in from all over the country, if not, all over the world. Council Member Henn emphasized that staff did not appoint the working group of Council Members and clarified it is an informal group of three Council Members who are helping to guide the project. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Daigle reported on a recent meeting of the Airport Land Use Commission (ALUC) in which they considered a review of the City's General Plan Update. She added that the Commission staff recommended approval, but the Commission, on a 3 -2 vote, did not make the findings. She noted that many projects in the City of Irvine have been denied, so Newport Beach is not alone in overriding the Commission. Additionally, she reported attending the Southern California Association of Governments (SLAG) General Assembly and commented on a presentation regarding an Economic Forecast, noting changes in retail shopping trends. She commented on collision technologies and noted it may not be impossible in the future to see toll roads on interstate highways. She commented on a resolution co- written with Santa Ana Council Member Michele Martinez regarding bicycle and pedestrian safety,, noting that it passed unanimously. She pointed out that bicycle safety is becoming an important issue in a lot of cities and that OCTA is making it a priority and is stepping up with more funding. Council Member Henn reported that the Tidelands Management Committee met on April 23, 2014, where it finished its review and provided guidance to the Harbor Commission on planning for Lower Castaways Park, provided guidance to staff regarding the Tidelands Infrastructure Capital Plan, and discussed the Balboa Island seawall planning. He added that the Finance Committee met on April 29, 2014, and reviewed the proposed budget and gave guidance to staff. Additionally, it provided additional thoughts regarding the next revision to the City's Financing Plan Tool, providing changes to the City's reserve policy and the recycled water rate structure. XIX. PUBLIC HEARING 19. General Plan Land Use Element Amendment - Notice of Intent to Override the Airport Land Use Commission's Determination of Inconsistency (PA2013 -098) [100 -2014] Community Development Director Brandt reported on a recent meeting of the Airport Land Use Commission's (ALUC) review of the City's General Plan Land Use Element Amendment, noting that it is required by State law because the proposed changes occur within the planning area of John Wayne Airport (JWA). She added that the majority of the Commission expressed concerns regarding the proposed additional residential units in the airport area which was the primary reason for their finding of inconsistency. Since Council is the final review authority on any legislative act within the City, State law has a provision for Council to initiate a two -step process to override ALUC's determination. She referenced completion of a similar process for the Uptown Newport project on Jamboree Road. She presented details of the two -step process, including adoption of a Resolution notifying ALUC, as well as the State Division of Aeronautics that the City intends to initiate and go through the process. Both State agencies have 30 days to respond to Council's Resolution, the findings, and the basis for the notification. The second step would have to occur before Council can take action on the Land Use Amendment project where Council would adopt the Resolution overriding the ALUC's determination with a two - thirds vote. Council's action at this time will also require a two- thirds vote and does not predispose Council's ultimate action on the project. Further, going through the process does not affect the City's consistency standing with the Airport nor does it change any of the City's liability in relation to a project within the planning area of the JWA area. Volume 61 - Page 561 City of Newport Beach Study Session and Regular Meeting May 13, 2014 Mayor Hill emphasized that Council's adoption of the Resolution does not constitute approval of the project nor does it predispose the City's future action. Council Member Petros stated that this is a perfect example of inconsistent planning and noted that the City of Irvine has approved 15,000 homes in the Irvine Business Complex. He asked if there are differentiating characteristics in the City's project compared to theirs. Council Member Daigle stated that they compare against planned versus what is on the ground. She added that this action is not preemptive in any way. Community Development Director Brandt reported that the proposed residential uses would conform to the appropriate noise contours, height standards, and the Safety Zone standards. Motion by Council Member Curry, seconded by Council Member Petros, to adopt Resolution No. 2014 -40, A Resolution of the City Council of the City of Newport Beach Notifying the Orange County Airport Land Use Commission and the State Division of Aeronautics of the City's Intention to Find that the General Plan Land Use Element Amendment is Consistent with the Purposes of the State Aeronautics Act and to Override the Airport Land Use Commission's Determination that the Land Use Element Amendment is Inconsistent with the 2008 John Wayne Airport Environs Land Use Plan, and finding the adopting of this Resolution is not subject to the California Environmental Quality Act. Mayor Hill opened the public hearing. Barry Allen reported that there are many people in the City that are interested in the General Plan. He expressed concerns that this item was not noticed properly and suggested continuing the matter until it is properly noticed. Mayor Hill reiterated that Council's adoption of the Resolution does not constitute approval of the project nor does it predispose the City's future action. Jim Mosher believed that it is not in the City's interest to override the decision of the ALUC as they are trying to protect the use and continued use of JWA by small, private airplanes and discourage use by large commercial airplanes. He addressed the required findings and the purpose of the Public Utilities Code section that formed up the ALUC. Council Member Daigle stated that, if an airport uses Federal funds, it is mandated to accommodate all aviation uses. ►A Council Member Curry pointed out that the project is not within the flight plan. There being no further testimony, Mayor Hill closed the public hearing. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tom Selich, Mayor Hill 20. Traffic Signal Modernization Project - Phase 6 (San Joaquin Hills Road and Newport Coast Drive) - Award of Construction Contract No. 5442 (CAP 14 -009) [381100 -2014] Volume 61 - Page 562 City of Newport Beach Study Session and Regular Meeting May 18, 2014 Public Works Director Webb provided the staff report, including tasks and equipment to be installed during Phase 6. He addressed the Request for Proposals (RFP) process, reported receiving 10 bids, and noted the low bidder, bid amount, and recommendations. Council Member Curry commented positively on the project. Motion by Council Member Curry, seconded by Council Member Henn, to a) approve the project drawings and specifications; b) award Contract No. 5442 to Fleenor Belco Electric, Inc. for the total bid price of $734,072.00, and authorize the Mayor and the City Clerk to execute the contract; c) establish an amount of $73,000 (10 %) to cover the cost of unforeseen work; and d) approve Budget Amendment No. 14BA -044 transferring $150,000 from 7181- C3001007 to 7181- 03002018. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill 21. Sculpture in the Civic Center Park Exhibition (100 -20141 Public Information Manager Finnigan reported that a presentation will be provided by Arts Orange County and introduced City Arts Commissioner Robert Smith. Commissioner Smith presented the 10 sculptures that the City Arts Commission selected to be part of the first sculpture exhibition. He acknowledged the attendance of Chair Goldberg, Vice Chair Greer, Commissioner Logan, and Commissioner Ware. He deferred to Arts Orange County Consultant Rick Stein and Green Public Arts Consultancy's Rebecca Ansert for a formal presentation and offered to respond to questions from Council. Rick Stein, Arts Orange County, presented a PowerPoint presentation to discuss the selection of artists, types and materials of the proposed artworks, proposed locations, staff review, term of the loan program, timeline and breakdown of submissions, jury panel members, selection criteria, and the selected sculptures and alternates. Rebecca Ansert, Green Public Arts Consultancy, presented images of the specific works of art and addressed specifications, artists, and site locations. Council Member Henn stated that Council should stay away from selecting art and focus on whether the process was an appropriate one. He believed that the process was appropriate and congratulated the City Arts Commission on its recommendations. Council Member Gardner agreed with Council Member Henn's comments and commented positively on the selection and placement. Mayor Pro Tom Selich commented positively on the process and commended the City Arts Commission for reaching out to the art community. Additionally, he addressed the elements which make the park the most vibrant park in the City. Council Member Curry congratulated the City Arts Commission and consultants for their work and efforts. He added that there will be opportunities in two years for different styles of art. Council Member Gardner noted that this is a huge step towards increasing the City's art profile Volume 61 - Page 563 City of Newport Beach Study Session and Regular Meeting May 13, 2014 In response to Mayor Hill's question, Ms. Ansert reported that there are plans to identify each piece of artwork with a plaque. Mayor Hill noted that he was impressed by the process and commented on the professional panel consulted for this project. Council Member Henn agreed that this is a huge step forward and reported receiving correspondence in opposition to some of the pieces which suggested placing the art in other City parks. Council Member Henn indicated that he is in favor of the project proposed today for the Civic Center, and is also in favor of expanding this concept to many other parks in our City in the future. Barry Allen commented on the process and on each of the proposed artworks. He commented positively on the Sphere and the Double Doily, but expressed opposition with the remaining pieces since many of the pieces do not look like the items they are supposed to represent. Jim Mosher commented on the process, referenced the number of entries, and stated that the City missed an opportunity to engage the public in the process of selecting the artwork. He added that the City's Arts Commission only saw the pieces that were presented to Council, spoke regarding the transparency of the process and committees, commented on the selection of the jury panel and the consultant, and expressed concern that Mr. Stein was exempt from filing a Statement of Economic Interest Form. Jim Warren commented positively on the presentation and the work of the City Arts Commission, but expressed concerns that consideration was not given to how the pieces will look to nearby neighbors. He added that the project is not in line with a previous agreement with nearby residents, suggested that many of the pieces be displayed in the City's museum or other parks, and expressed disappointment that neighbors were not given the opportunity to provide their input. Brian Smith stated that he does not believe that any Council Member would want any of the proposed art pieces in their backyard. He added that the entire property is in his and his neighbors' backyard. He expressed appreciation to the City for considering the neighborhood relative to the Civic Center's lighted sail, but expressed concerns with the size of the proposed pieces of art and asked that Council consider the impact to adjacent neighbors. Council Member Petros commented on consideration of Renoir's and Monet's art in Paris when many believed the pieces were ugly and not understandable. However, today, those same pieces are held in high esteem. He stated that he is not a judge of art, but believed the proposed pieces are evocative pieces and stated that he would have them around his neighborhood. He added that this is not about Council being art critics, but rather about whether this was a fair process, to which he believed it was a fair process and commented on the time this project has taken. He believed the pieces will bring great esteem to the City. Motion by Mayor Pro Tem Selich, seconded by Council Member Henn, to approve the 10 sculptures and the proposed locations within the Civic Center Park as recommended by the City Arts Commission for the temporary sculpture exhibit. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill Volume 61 - Page 564 City of Newport Beach Study Session and Regular Meeting May 13, 2014 22. Contract Approval for Public Safety Helicopter Services between the Cities of Newport Beach and Huntington Beach (C -4860) [381100 -20141 City Manager Kiff noted that this is a renewal of the contract for Public Safety Helicopter Services Motion by Council Member Gardner, seconded by Mayor Pro Tom Selich, to approve the services agreement for public safety helicopter support between the City of Huntington Beach and the City of Newport Beach ( "Agreement "), and authorize the Mayor to execute the Agreement on behalf of the City. In response to Council Member Curry's question, Police Chief Johnson reported on the amount saved by the City using this service versus the old system. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill The City Council recessed back into Closed Session at 9:07 p.m. and reconvened at 9:31 p.m. City Attorney Harp announced that no reportable actions were taken. XXI. MOTION FOR RECONSIDERATION -None XXII. ADJOURNMENT -Adjourned at 9:33 p.m. in memory of George Schumacher The agenda for the Study Session, Closed Session, and Regular Meeting 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 May 8, 2014, at 4:00 p.m. Recording Secretary Mayor NgWP�R City Clerk U U n c S 9L��0 RN�P Volume 61 - Page 565