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HomeMy WebLinkAbout16 - Council Policy Revisions & Statement of Investment PolicyITEM 16 TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager SUBJECT: Council Policy Revisions for 2001 and Public Meeting to Consider City's Statement of Investment Policy (F -1) RECOMMENDED (a) Approve the proposed revisions to Council Policies A -2, F -1, F -2, F -3, F-4, F -9, ACTIONS: F -16, F -17 (old), H -1, 1-2,1-5,1-7,1-12,1-21,1-25, K -1, K -10 (new), L -2, L -6, L -7, L -8, L -12, and L -16. (b) Once amended and adopted, affirm Policy F -1 (Statement on Investment Policy). EXECUTIVE The City Council's Council Policy Manual tells City staff and the Council how to SUMMARY: address many common issues that arise in the city. The Policy Manual reflects the wishes of the Council regarding dozens of issues - from appointing commissioners to trimming trees - that are important to address in a consistent manner year after year. The Policy Manual directs the City Manager to conduct a review of the Manual at least once a year during the first quarter of the calendar year. This Agenda Item includes suggested changes to about 22 Council Policies generated during the 2001 review. It also includes the text of the City's Statement of Investment Polio. Per a State of California requirement enacted after the 1994 Orange County bankruptcy, the item asks the Council to consider this Policy (as proposed to be amended) in public at this same public meeting. SUMMARY: This agenda item contains two parts: • Part I - The annual review of the City Council's Council Polio Manual (with recommended changes to 22 separate policies); and • Part 11- The annual affirmation of the City's Statement of Investment Policy (Council Policy F -1) as required by California law. Part 1— Policy Manual Review. Council Policy D -3 directs the City Council to review the more than 100 "council policies" in the Council Policy Manual sometime during the first quarter of each calendar year (admittedly, the recommendations from this Review are about 40 days late this year). These policies exist to instruct the Council and City staff on how to process a variety of different issues — from airport and annexations to voice mail and water service outside the City limits. This year, the 22 policies proposed for change are summarized in Attachment A. Many of the proposed changes are minor, but noteworthy changes include the following: Newport Beach City Council Page 2 Finance Committee Recommendations(F -1, F -2, F -3) The Finance Committee reviewed and recommended changes to F -1 (Statement of Investment Policy), F -2 (Reserves /Designations of Fund Balance), and F -3 (Budget Adoption and Administration). Noteworthy changes to F -1 include provisions that: • Up asset minimums for institutions holding City money. • Tighten rules for investing in Banker's Acceptances and Commercial Paper. • Remove separate City limit on amounts that can be invested with the State's Local Agency Investment Fund (LAIF). Note: the LAIF limit is currently $30 million invested per jurisdiction, with not more than 15 transactions per jurisdiction per month. • Reduce from 10% to 5% the amount that the City can invest in LA County Pool while prohibiting any City investment in the Orange County Pool. • Increase (from 15`Yo to 25%) the amount that the City can invest in Medium Term Corporate Bonds and Notes. • Cap the amount that the City can invest in Asset - backed Securities at 10`Yo. • Allow City investment in Money Market Funds. • Prohibit City investment in certain investments and /or securities rated Al or A+ or below if these securities are on "credit watch "; and • Reduce cap (from 35% to 30%) of City money that any one investment management company can hold. A noteworthy change to F -2 (Reserves) directs that the City's General Fund Contingency Reserve go from 8.33% of annual General Fund operating expenditures to 10 %. F -3's changes are intended to conform the Policy with current City practices. New or Expanded Revenue Measures (F-4) The Revenue Manager proposes deleting a reference in F-4 that, whenever a specific fee is proposed for an increase, directs City staff to submit results of a survey of fees charged in other cities for a similar service. The Revenue Manager asserts that this survey is contrary to the City's policy that any City - imposed fee be based on the City's cost of providing the service without regard to what other agencies may charge. City Vehicle /Equipment Replacement Guidelines (F -9) The General Services Director has requested modifications to F -9 that add some equipment to the Replacement timing list and recommend the replacement of certain fire vehicles 5 years earlier than currently suggested. Ackerman Trust (F -16) The Human Resources Director proposes changes to F -16 that direct that the scholarship program envisioned by the Ackerman Trust be extended to any "needy, qualified" student who resides in Newport Beach, not just the children of City employees. Economic Development Policies (F -17 changed and renumbered as K -10) Assistant City Manager Sharon Wood reports that the Economic Development Committee (EDC) has reviewed their accomplishments, the Council Resolution establishing the Committee and the Committee's role in light of the passage of Page 3 Measure S, as well as the Council Policy on Economic Development (F -17), for the past several months. EDC determined that parts of F -17 are not appropriate for Newport Beach today. A report on EDC's accomplishments in 2000 and their recommended revisions to the Resolution is also on the Council's agenda for this same April 10, 2001 regular meeting. Wood reports that the most notable changes to Policy F -17 are: • Strengthening of the relationship between economic development and the quality of life for Newport Beach residents. • Clarification of the City's policy on fiscal and economic impact studies. • Highlighting programs the EDC believes are important (like improving commercial areas). • Deletion of programs that are not relevant to Newport Beach (like advertising and professional marketing). • Improved organization of the policy, including a renumbering that would place F -17 into the Planning Policy Section as new policy K -10. More specifically, the changes to F -17: • Added policy statement for consistency with other Council policies. • Added strategic plan for economic development as part of General Plan. • Replaced identification of specific businesses with business categories due to confidentiality requirements. • Emphasized infrastructure replacement and upgrade needs. • Clarified use of fiscal and economic impact studies. • Added advocacy for projects that will benefit the City. • Changed critique of City's budget practices to review. • Added business retention and attraction statements. • Added consideration of relief from City fees. • Replaced actions to promote land use conversions with revitalization of older commercial areas. • Deleted advertising and professional marketing statements. Harbor Permit Policy (H -1) The Harbor Resources Division recommends changes to H -1 that refer readers to the Master Fee Schedule and that refer to the Harbor Resources Division instead of the Fire and Marine Department. Public Library Community Room Use (I -21) The Community Services Director reports that I -21 was redrafted "to provide additional guidelines for scheduling in response to competing demands for the facility. The ... changes ensure availability (of the Friends Meeting Room) to the library, the City, its officers and employees, and to limit interference with the public's use and enjoyment of the library." More specifically, the changes in part do the following: • Require groups of IqO or more to provide an off -site parking plan. Groups are limited to 150 participants. • Materials used in advertising meetings or activities conducted in the Friends Meeting Room must be submitted to the Library to verify that the event is not advertised or promoted as a City or library activity. 3 Page 4 • No use available on Sundays; and • Require a certificate of insurance naming the City as additional insured. General Plan (K -1) The Planning Director suggests the following changes to K -1: • Eliminate initiation cycles for GP amendments. Instead of 3 GPA initiation cycles, the Planning Director suggests that anyone may request an initiation of an amendment at any time. This will allow the initiation process to be consistent with how the City actually processes and acts on amendments to the General Plan. While California State Planning Law sets forth a limitation on General Plan Amendments to four per year, the City Attorney believes that this limitation does not apply to Newport Beach as a charter city. • Substantive changes by City Council. The proposed policy requires the Planning Commission to report their recommendation on a substantive change to an amendment by the City Council within 45 days. It also eliminates the concept of a substantive amendment referred back to Planning Commission to be accepted automatically. This makes the policy consistent with standard procedures for the referral of projects back to the Planning Commission. • Information required. The proposed policy requires project - specific General Plan Amendment requests to include submittal of quantified density and /or intensity and land use information, as well as a conceptual site plan. This provision has been added in response to comments of the Council and the Planning Commission during the last several initiation cycles. • City Amendments. The policy will now have a specific provision for amendments generated by the Planning Commission and City Council. This reflects the City's actual practice, and has been added for clarity only. • Related applications. The Planning Director proposes a provision to require the submittal of related planning applications for citizen and property owner requests within 180 days (6 months) of initiation. This will establish a specific time -frame for submittals, beyond which a new initiation must be obtained. Changes to Encroachment Permit Policies (L -2, L -6, L -7, L -8, L -12, L -16) The Public Works Department submitted several minor changes to the encroachment policies - most involve changing the policies to reflect current practices. Attachment A describes these proposed changes briefly in a spreadsheet format. Attachment B includes the strikeout and insert version of most of the policies proposed for change. The Economic Development Policy (F -17 changed to K -1) is included both in its current form and as proposed to be amended. Community Services Policy I -21 is presented similarly, since the Library Board of Trustees changed the style and presentation of the Policy in a substantial way. y Page 5 Part II — Affirmation of City's Investment Policy. Following the County of Orange's bankruptcy in late 1994, the State Legislature adopted SB 564 (Johnston) which requires each local agency to consider its Statement of Investment Policy (the City Council's Policy F -1) annually at a public meeting. The law reads as follows: Government Code § 53646 -- (a) The treasurer or chief fiscal officer shall annually render to the legislative body of the local agency and any oversight committee a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any changes in the policy shall also be considered by the legislative body of the local agency at a public meeting. The Council's review of this policy at a public meeting (the May 8, 2001 City Council Meeting) completes this obligation. ATTACHMENTS: Attachment A - Summary of Proposed Council Policy Changes Attachment B - Council Policies - Strikeout and Underline Versions (except I -21 and F- 17 /K -10 - full /new versions) Er c m r E U r 0 0 N N d i U C� G t U A •O m ao CL r z d Z N O co O ?j R r m rn ca IL W d sA c a m y a m °y c - o a+ m a c U r c 0 g m nn E c m IL L d V t T ; a � m m+ °e' E m � � y o m c y o � V > C N o N m m � E C J r � m V ; T E c � o S n m m 5 c y o 'u+ m n � u E o d m C2 m q g m a m m m m m m m m m m m m o g m m m m O q y m t l s L s t z z z z a m �N Q m IN t z Z p p N 0 N N N N N N 6 4 4 p J � O N m q m m qq O of n q m n m nn M N n h m q h m h m mmn N N mggm h m p [� �i n O t O > ] t m J S N t ry a O Z Z LL Z LL1y ' ' ¢ 0 of O e a n NO N N N N— - C c � T a V w U m N A O amm 5 d q o ~ u 2 3 d U S 0 00 c c o E Ti a E °m o c N v E y m m Q U ° d` �o �� im 3 ° 2 m N 0 E q a N z o g O d E E ` a5 c o o a y O m ° E•d oE E o cJ y ¢° N 2 E J 0 a o U V a m m ¢ m t U n 0 W— W 0 o oE ki 0 0 ,� V " m E O U s 02 U c m J -U ` CE'�2mn Ei aia c '6o V° � ]° yEa E bcEf'e m$io a c m w n J = U m O w O U O O w O m c g Y J o U i r m rn ca IL W CI C d U V- 0 0 N N d U C� G V L V .O m at O CL d o Z N O a0 A d c cc a �° c$ E c m E E c E c N c m c O m o o o d Z v = g € v ° 'n E c d 8 E F N A E ` v E 'Cc m" E c i:° i g x a T �nv5 T y c m ".> sv v = _ c a o As�v is _ E O a s y vi�`m5: O w y 8 3 a y" c° u a. s °- n° v'8E`cc o m 5 S my m d LL E °v EE S ` m U 9 n m n c E c° cs C 6 O E v 44 ��- n q E o„ 9 o i g Ti E '� c V E cm ._>O m� @A2= =c m u E„_°'^c i,cag= P.y gg! 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O m N m a m m rn M N m m m m m mam Cc I m O yO r m 6 r rN r m m ` A A c 7 w > x c m dN �9 cc �A om e � dqm S �mA m y �c V C U T N A Y T N L a F i C T y G O YI a L i 0 y W C N yy U y LL a C M c 6 E 2 Q 0 U m O m O Z A`V 8 mA� o N o A mm U C ` m ciy ° ��_�E' mdcO im�2 L 9 y 0 E [E'o- r 5 O O Aau > i E y C J A - m O 8 y y N 0 Z & r W > P m 49 t O d 0 O O m c p o N (a m Y m c EOL€ mUUA 3O L Vq m E AWQ L c E m N" � m nQ E' m o � ` 00. S o y 3¢m.�3m Amm c_n 7 aaomU w uoJ w f-a �_ >,z o U o� N mem m r m O mO U 2 - N C'I O m r m m e J N M p m m r m m ; v v V V � :V J J J J J J J J J J J J J J J J J LL LL Y, d m 2 A -2 BOARD AND COMMISSION APPOINTMENTS Service on City Boards and Commissions is one of the principal means by which citizens can participate in the conduct of City government. The number of citizens qualified for such service always exceeds the number of appointments that periodically can be made by the Council. On or before December 31 of each year, the City Clerk shall prepare a list of all appointive terms of Boards, Commissions and Committees which will expire during the next calendar year, with the name of the incumbent appointee, the date of appointment, the date the term expires, and the necessary qualifications for the position. Also, the City Clerk shall list all Boards, Commissions and Committees whose members serve at the pleasure of the City Council, and the necessary qualifications of each position. The City Clerk shall further maintain a file of Candidates for Board and Commission appointments, which shall be reviewed each year by the City Clerk to insure that those applicants are still available for appointment. Applications shall be retained in the active file for two (2) full years; thereafter they will be destroyed. Two months prior to a scheduled vacancy, the City Clerk shall prepare and submit to the various newspapers, information relating to the vacancy including meeting dates and times, Board or Commission functions, and the method of obtaining and submitting applications and establishing the third Wednesday prior to June 1 as the last date to submit applications. The City Clerk shall notify each applicant of the receipt of their application. Within twenty days after an unscheduled vacancy occurs on a Board or Commission, a special vacancy notice shall be posted in the City Clerk's office, and other locations as directed by City Council. Additionally the City Clerk shall prepare and submit to the various newspapers information relating to the vacancy including meeting dates and times, and Board or Commission application procedure. Final appointment (other than emergency appointments) shall not be made for at least 10 working days after the posting of notice. If an unscheduled vacancy occurs within one year from the expiration of the term, the City Council has the discretion to appoint a replacement to serve the balance of the unexpired term plus one full term of four years. Periodically, situations may arise wherein due to the occurrence of a number of simultaneously scheduled Board or Commission vacancies, it may be appropriate to 11 A -2 make certain adjustments in the advertising and recruitment procedures, which are regularly utilized to fill these vacancies. In these cases, the City Council may make the following adjustments by majority vote at a regular public meeting: A. The two -month period prior to the occurrence of a scheduled vacancy, which is established for advertising purposes, may be extended to three months. B. The last date to submit applications for a vacancy may be changed from the third 4 a Wednesday prior to June, to no sooner than the third TT�Wednesday prior to May 1. C. The period established for the ad -hoc Appointments Committee's recommendation to the Council of candidates, may be extended from at least two weeks, to at least four weeks prior to the date of appointment. When vacancies occur, the City Council shall make every effort to appoint the best - qualified person to serve the interest of Newport Beach. The City Council shall only appoint persons who have filed an application for appointment with the City Clerk no later than five (5) days prior to the date on which the City Council nominates candidates for positions. The application shall serve as a basis for determining if the person is a qualified elector of the City, has no conflict of interest that would prevent the applicant from serving, and otherwise satisfies the criteria for appointment specified in the City Charter and any relevant ordinance or Council policy. The City Council prefers that members of Boards and Commissions represent different geographical areas of the City, but residence is a consideration only when applicants are otherwise equally qualified. To afford the maximum opportunity for citizen service, no person shall be eligible for appointment to any one City Board or Commission for more than two consecutive four year terms, exclusive of a prior appointment to fill an unexpired term. Appointees shall serve on only one standing City Board, Commission or Committee at any time, with the exception of individuals who serve on committees as representatives from other City Boards, Commissions or Committees (i.e. a Planning Commissioner may be seated on the Economic Development Committee as a representative of the Planning Commission). At such time when an appointment to a Board or Commission is necessary, the Mayor will establish an ad -hoc Appointments Committee composed of three Councilmembers. The Committee's duties are as follows: W A -2 A. Review all applications for position to City Boards and Commissions. The ad- hoc Appointments Committee will review applicant answers to all questions contained in the application; B. Conduct any necessary interviews with individual applicants; and C. At least two weeks prior to the date of appointment, recommend to the full City Council at a regular public meeting, two or more candidates for each Board or Commission vacancy. Members of the Council may wish to interview the recommended candidates further prior to final selection by the Council. By requiring two or more candidates for each vacancy, it is the intent of the City Council that at least two separate individuals should be considered for each vacancy, i.e., if there are two vacancies, at least four separate individuals will be considered. The ad -hoc Appointments Committee, in conducting their review of applications and interviews with the individual applicants, shall attempt to determine if there exists a potential conflict of interest, which might interfere with the performance of the applicant's duties in an impartial manner free from bias. It is generally recognized that from time to time it is possible for any individual to have a conflict on any one given issue. The ad -hoc Appointments Committee, however, shall endeavor to avoid recommending appointments of applicants with a substantial conflict of interest, which would require repeated disqualification from voting on issues that are likely to come before the Board or Commission. PROCEDURE FOR VOTING ON APPOINTMENTS TO CITY COMMISSIONS, BOARDS AND COMMITTEES A. The Council will vote on all appointments and seats on each Board/ Commission simultaneously. The voting will be by paper ballot and the City Clerk will tabulate and announce the results, including the vote tally. B. Each member of the Council will cast the number of votes as indicated on the paper ballot for each seat from the list of the nominees. In order to be appointed, the nominees must receive at least four votes. C. For boards/ commissions with two vacancies, if two of the nominees receive four or more votes, they will be automatically appointed. 3 l3 A -2 D. If there is a tie vote, ballots will be distributed to the Council Members to vote for the tying candidates only. E. In the event that no one receives four votes, nominees receiving zero or one vote will be dropped and the Council will cast two votes from the list of the remaining nominees and the determination will be made as previously stated. The City Clerk shall also be responsible for the following functions associated with Board and Commission as well as Citizens' Advisory Committee appointments: A. Preparation of letters for the Mayor's signature notifying successful candidates of their appointment. B. Preparation of letters for the Mayor's signature notifying unsuccessful candidates for appointment. C. Preparation of letters for the Mayor's signature thanking outgoing members for their service and coordination with the Purchasing Agent in the preparation of formal Certificates of Appreciation. Once the final appointments are made by the City Council, the ad -hoc Appointments Committee will be dissolved. Adopted - June 28,1965 Amended - August 15,1966 Amended - September 26,1966 Amended - June 10, 1968 Amended - July 12,1976 Amended - September 12,1977 Amended - November 28,1977 Amended - December 19,1977 Amended - June 26,1978 Amended - March 12,1979 Amended - July 27,1981 Formerly A-4 Amended - November 23,1981 Amended - January 24,1994 Amended - February 26,1995 Amended - August 12,1996 Amended - February 24,1997 Amended - March 22,1999 Amended - July 12,1999 Amended - September 27,1999 Amended - March 14, 2000 Proposed for Revision - April 10, 2001 4 STATEMENT OF INVESTMENT POLICY PURPOSE F -1 To set forth the City's policy concerning the investment of temporarily idle funds. It is the policy of the City to invest funds not required for immediate expenditures. Investments will be in compliance with governing provisions of law and the policy contained herein. Primary investment goals are security of principal, adequate liquidity maintenance, and yield, in that order. Investments shall be placed only in securities as outlined below. The balance between various investment instruments may change in order to provide the City with the best combination of yield, liquidity, and a consideration for other factors, such as placement of an appropriate percentage of available investment funds locally. It shall be the main responsibility of the City Council, in adopting this policy and reviewing the investment holdings on a monthly basis, to preserve the investment principal. INVESTMENT AUTHORITY Under the direction of the City Manager, the investment authority has been delegated to the Director of Administrative Services, who is responsible for administration of the City's investment program. This authority shall be renewed annually as part of the review and update of this Policy. In addition to the monthly investment report that is submitted to the City Council, the Administrative Services Director shall provide more detailed investment information to the City Council as requested. The City Council shall be briefed directly by the City's investment advisors on a quarterly basis whenever possible. Sections 53600 -53601 of the California Government Code provide basic investment limits and guidelines for government entities. In the event an apparent discrepancy is found between this policy and Sections 53600- 53601, the more restrictive parameters will take precedence. LIQUIDITY Sufficient funding to accommodate at least two- week's projected cash outflow is to be maintained in immediately available investments, such as the State Local Agency Investment Fund, maturing certificates of deposit, or similar liquid instruments. An analysis of cash flow must be conducted at least weekly to serve as the basis for determining appropriate maturities for investments. At no time shall the liquid cash on 11 15 F -1 hand be less than 5 percent of the City's total investment portfolio. For purposes of this policy, cash on hand includes all cash and investments accessible within 48 hours. ACCEPTABLE INVESTMENT INSTRUMENTS The following are types of investments made by the City and the guidelines for investing in each. In all cases, investments shall be made in the context of the "Prudent Man" rule, which states, in part, that: "When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part to (sic) an overall investment strategy, a trustee is authorized to acquire investments as authorized by law." In this light, the City of Newport Beach does not purchase or sell securities on margin. Additionally, any institution, which holds either the collateral or the investment instruments themselves in safekeeping for the City, must maintain at least one billion dollars $500100,000,000 in assets. A. Certificates of Deposit Only fully collateralized certificates of deposit with FDIC insured institutions will be utilized in investment of City funds. Government securities having a market value of 110 percent of the total amount of investment are acceptable as collateral. As altefnative, first trust a,.eds having value of 1 50 perEent of 1, 1 f .table „Ilan„ .,1 if appr-oved by the tetur .....�rxnt er --1�tH investment ,.... c,..,.;ees Pireet .. , a case by ease basis. Noncollateralized CD investments may be made in amounts less than $100,000 so long as they are fully insured by the FDIC. Not more than 10 percent of the City's investment portfolio shall be invested in certificates of deposit with any one institution. CD's will not be placed for a period of longer than one year. Further, an institution must meet the following criteria to be considered by the City: 21 1� F -1 1. The institution must maintain at least $1 billion in assets ($100 million for fully insured CD's of $100,000 or less). 2. The institution must have been in business at least three years. 3. The institution must have a net worth to asset ratio of at least 6 percent. 4. The institution must place and maintain on file with the City an audited financial statement not more than one year old. 5. Interest shall be paid to the City on a monthly basis. B. Negotiable Certificates of Deposit As a matter of policy, the City invests in Negotiable Certificates of Deposit only with U.S. Banks whose underlying securities are rated A -1 or P -1 by one of the top two rating agencies and having assets in excess of $10 billion, so as to insure security and a large, well - established secondary market. Ease of subsequent marketability is further ascertained prior to initial investment by examining currently quoted bids by primary dealers and the acceptability of the issuer by these dealers. No one issuer shall exceed more than 10 percent of the portfolio, and maturity shall not exceed one year. The California Government Code Section 53601 limits investment in negotiable certificates of deposit to 30 percent of the portfolio. C. Bankers Acceptances The City may invest only in Bankers Acceptances issuedwAtteFt by the 100 largest banks in the world, which are eligible for purchase by the Federal Reserve System, the short term paper of which is rated at the highest category by Moodv's and Standard & Poor's.- In the case of foreign banks, the Bankers Acceptances must be written by their U.S. branches. Maximum maturity shall be nine Fnon hs180 days. No more than 30 percent of the City's overall investment portfolio shall be placed in Bankers Acceptances, with no more than 1.0 percent of the City's portfolio invested in the banker's acceptances of any one commercial bank. D. U.S. Treasury Issues 31 F -1 The City may invest in treasury notes, bills and bonds. Safekeeping documentation of these instruments in an acceptable and secure account in the City's name is required. Maximum maturity of any U.S. Treasury issue shall be five years. E. Federal Agency Securities Securities of this type that are acceptable for the City's investments are Federal Home Loan Bank notes, Federal National Mortgage Association notes, Federal Farm Credit Bank notes, or any other U. S. Government Agency security. Security requirements and maturity limitations are the same as those for U.S. Treasury issues. F. Commercial Paper The City may only invest in commercial paper issued by large, exceptionally ,well i;;hedwell- established firms (firms with assets greater than $1 billion and their subsidiaries) organized and operating in the United States with the highest Moody's or Standard & Poor's ratings (A1 /P1). Commercial paper shall be used solely as a short -term investment not to exceed 180 180 days. Additionally, not more than 15°e percent of the portfolio shall be invested in commercial paper with a maturity beyond 30 days. Another 154 ep rcent may be invested in commercial paper if the entire amount invested in commercial paper has a weighted dollar average maturity of less than 31 days' ith a .....turir,. 4 less than 20 days. Security requirements are the same as those listed above. Investment in commercial paper of any one issuer shall not exceed 10 percent of the portfolio. G. Repurchase Agreements ( Repos) and Reverse Repurchase Agreements Repos and reverse repos shall be used solely as a short -term investment not to exceed 30 days. The institution from which the City purchases a Repo must deliver adequate collateral to the City's safekeeping account (either directly or through a third party safekeeping agent), consisting of U.S. Treasury or Agency securities at the rate of 102 percent of the face value of the repo. The amount of this collateral must be sufficient to compensate for fluctuating market conditions. Repos will only be purchased from Primary Dealers. 4 F -1 Assets n--ast be owned by the Qty The City must own assets for more than 30 days before they can be used as collateral for a reverse repurchase agreement No more than 10%-percent of the portfolio can be involved in reverse repos.. 51 Ir F -1 H14. Passbook Savings Accounts Savings accounts may be used as a repository for customer deposits, or for similar purposes. Consistent with the requirements for CD investments, funds deposited in savings accounts must either be FDIC insured or collateralized. I. Local Agency Investment Fund (LAIF) (State of California) State Regulation currently limits any one City's investment in this fund to $2-9-30 million at any one time, and prohibits more than 1$15 transactions (deposits or withdrawals) per month. Investment in this Pool is intended to be used as a temporary repository for short -term funds used for liquidity purposes. U RR J. County Investment Funds Beth Orange and-Los Angeles Countyies provides a service similar to LAIF for municipal and other government entities. B^t'oz. o —4ie%- This Funds isare available to certain cities outside of Los Angeles County, including Newport Beach. Investment in these this pools is intended to be used as a temporary repository for short -term funds used for liquidity purposes. At no time shall more than 445 percent of the City's total investment portfolio be placed in either of vrthese Peclsthis Pool. The Citv shall not invest funds with the Orange County Pool. K. Medium Term Corporate Bonds/ Notes Investments of this type will normally only be in corporations rated in the top three note categories by two of the three largest nationally recognized rating services. Maximum term to maturity for individual securities shall not exceed five years, and not more than 15254 percent of the portfolio shall be invested in medium term notes of maturity greater than 2 years. _No more than 30 percent of the City's investment funds shall be placed in securities of this type. As an additional restriction, not more than 10 percent can be invested in "A, "rated securities, and none of those investments shall exceed two vears to maturitv. a F -1 L. Asset - backed Securities Investment in asset - backed securities is limited to those collateralized with consumer receivables, rated "AAA," or the equivalent, by Moody's Investor Services or Standard & Poor's, Inc., and which have a final, stated maturity of five years or less from the date of purchase. No more than 10 percent of the City's investment funds shall be placed in securities of this type. M. Municipal Bonds Municipal bonds rated AAA, or AA and insured, are acceptable investments for the City. Not more than 1546 ie� rcent of the portfolio shall be in investments of this type. N. Monev Market Funds The City may invest in Money Market Funds subject to the following constraints. Investment in these funds is primarily intended for short -term "sweep account" purposes, not for longer -term investments. 1. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a- 1. 2. The company shall have met either of the following criteria: (a) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. ( Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than ten years' experience managing money market mutual funds with assets under management in excess of one billion dollars ($1,000,000,000). 3. The purchase price of shares of beneficial interest purchased shall not include anv commission that the companies may charge. 71 F -1 4. No more than 20 percent of the City's investment portfolio shall be invested in money market funds. 5. The City shall not invest in funds the market value of which is or has been less than $1 per share. PROHIBITED INVESTMENTS Consistent with California Government Code 53601.6, inverse floaters, range notes mortgage derived interest -only strips, or any security that could result in zero interest accrual if held to maturity are specifically prohibited except to the extent that they are shares of diversified management companies registered under the Investment Company Act of 1940. The City shall not purchase any security rated Al and or A+ or below if that security has been place on "credit watch' for a possible down g ade by either .Moody s Investor Services or Standard and Poor's. Investments not specifically approved by this policy are prohibited. ASSET/ INVESTMENT MANAGEMENT AGREEMENTS The City may employ the services of asset/ investment management companies. Such companies must have a history of producing no losses and relatively high net returns. They must also be well established and exceptionally reputable. Members of the staffs of such companies who will have primary responsibility for managing the City's investments must have a working familiarity with the special requirements and constraints of investing municipal funds in general and this City's funds in particular. They must contractually agree to conform to all provisions of governing law and the collateralization and other requirements contained herein. At no time shall more than 45-30 percent of the City's total investment portfolio be placed in any one investment management account_ it is the intent of this " li for as ifiEati Purposes, that no mere than 20 percent 4 the City's total inves4pients will be l ; ed ip . .. .... account. In order to implement this requirement, the City's portfolio assets will be reallocated annually tframon its investment managers. SAFEKEEPING /THIRD PARTY CUSTODIANS Cash and securities in the City's portfolio, which are being managed by private sector asset/ investment management companies, will not be in the custody of those F -1 companies. The City will contract separately with major banks or other well - established, reputable financial institutions, which provide custodial services to maintain custody of cash and securities in this category. In the case of a major financial institution, the City may have an asset/ investment management relationship, and a custodial relationship, with the same entity. However, the services must be provided by separately managed departments within that entity, and the City's portfolio must be completely separate and distinct from the assets of the institution and from all other portfolios managed by the institution. RATING AGENCY CHANGES In the event a security held by the City is the subject of a rate drop which brings it below accepted minimums specified herein, or the security is placed on negative credit watch where downgrade could result in a rate drop below acceptable levels _the investment advisor who purchased the security will immediately notify the Administrative Services Director or Deputy Director of that fact. The course of action to be followed will then be decided on a case by case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further drop, and market price of the security. The City Council will be advised of the situation and intended course of action by e-mail or fax. REPORTING REQUIREMENTS In addition to the Monthly Investment Report, the City Council shall receive a detailed quarterly listing of all investments in the City portfolio. The report must show the type of investment, issuer, date of maturity, par and dollar amount of deposit/ investment, and rate of interest. Quarterly reports from outside investment managers must also include market valuation of assets under their management and the source of that valuation, and shall also include a statement of compliance with investment policy. Current ratings of non - government securities, either Moody's or Standard & Poop's, will be included. In his report to Council, the Director of Administrative Services shall include a statement denoting the ability of the City to meet its expenditures for the next six months, and shall also include a statement of compliance with investment policy for assets under his direct management In addition, the City Council shall be notified whenever 5 percent or more of the total portfolio is invested, withdrawn, or moved from one Investment Advisor or Pool to another. a �.3 Adopted - April 6,1959 Amended - November 9,1970 Amended - February 11, 1974 Amended - February 9,1981 Amended - October 27,1986 Rewritten - October 22,1990 Amended January 2A r 1904 Amended -January 9,1995 Amended - April 22,1996 Corrected - January 27,1997 Amended - February 24,1997 Amended - May 26,1998 Amended - January 28,1991 Reaffirmed - March 22,1999 Amended - January 24,1994 Reaffirmed - March 14, 2000 Reaffirmed March 1 n 2000 Amended - March 27, 2001 F -1 10 RESERVES/ DESIGNATIONS OF FUND BALANCE PURPOSE F -2 To establish City Council policy for the administration of financial reserves and fund balances. DISCUSSION A. Background. Prudent financial management dictates that some portion of the funds available to the City be reserved for future use. Future uses are categorized as either pre - planned projects or unforeseen financial emergencies. B. Structure and Funding of Reserves. This Policy establishes Reserve Accounts or designated Fund Balance levels for moneys being held in reserve. In addition, the sources and eventual use of Reserve Funds are set forth. It is the policy of the City Council that each Reserve identified herein is to be fully funded as part of the annual budget process. If operational or other considerations require the City Council to temporarily override this policy during any fiscal year, the City Manager will recommend to the City Council a plan to restore any Reserves falling below required minimum levels. Reserve levels will be restored as soon as practical, but in not more than 5 years. Each of the City's fiscal reserves is established and maintained for one of four purposes listed in general order of importance below. If the reserve requirements of this policy are unmet in any fiscal year, the City Manager will recommend funding prioritization to the City Council as part of the Budget. C. Use of Reserves. Governing Parameters regarding use ef funds­-in—Reserve Aeeeunts is est The City Council decides whether to appropriate funds from Reserve Accounts. Even though a project or other expenditure qualifies as a proper use of Reserves, the Council may decide that it is more beneficial to use current year operating funds or bond proceeds instead, thereby retaining the Reserve funds for future use. Reserve Funds will not be spent for any function other than the specific purpose of the Reserve Account from which they are drawn without a separate City Council Resolution approving that specific action. Information regarding Annual Budget Adoption and Administration is contained in City Council Policy F =3. 1 2.r F -2 D. Categories of Reserves. 1. Accounting Reserves. Generally accepted governmental accounting practices require identification of generic reserve funds for certain purposes. These accounts represent the unspendable portions of fund balance, such as inventories and long term receivables, as well as funds that are legally restricted by some external source, such as debt service reserves and encumbrances. Reserving funds for a contract awarded in one year but not completed until a succeeding year is one example of an accounting reserve for encumbrance. 2. Contingency Reserves. Contingency Reserves represent funds for unexpected financial emergencies. One example requiring the use of this Reserve is the adverse impact of natural disasters such as earthquake or flooding on revenue availability, as well as increased demand for City services. Other examples are unexpected loss or reduction of a key revenue source; special projects, programs, or price changes mandated by another government entity; and emergency capital projects needed to deal with unforeseen structural failure. 3. Designated Reserves. These Reserves are designated for known or anticipated events. Such events require large, non - recurring financial outlay, such as the replacement of systems and equipment or major capital improvements. 4. Stabilization Reserves. Stabilization Reserves enhance the orderly management of the Operating Budget by stabilizing revenues and expenditures, which fluctuate beyond the ability of City staff to control or predict. One example is the annual change in retirement contribution rates mandated by the Public Employee Retirement System (PERS). Other examples are changing prices for utilities and fuel, as well as the volatility in certain special program funding. These Reserves provide stability by "smoothing out" year to year volatility in the City's finances. FUNCTION AND ADMINISTRATION OF RESERVE ACCOUNTS Reserves are identified below by fund, category and specific function. The specific numbers of accounts where these Reserves are physically located change from time to time as the overall account structure is updated and modified. However, the Fund Balance Statement, which is available for ready reference in the City's Annual Budget 2 r�� F -2 document, identifies balances, past -year activity, and projected current year activity for each of these Reserves. A. General Fund. 1. Accounting Reserves. a. Reserve for Inventories. The value of inventories purchased by the City but not yet issued to the operating Departments is reflected in this account. b. Reserve for Debt Service. Funds are placed in this Reserve at the time debt is issued. The provisions governing the Reserve are established in the Bond Indenture, and the Reserve itself is controlled by the Trustee. C. Reserve for Long Term Receivables. This Reserve is used to identify and segregate that portion of the City's financial assets which are not due to be received for an extended period, so are not available during the budget year. d. Reserve for Encumbrances. This Reserve accommodates spending for contracts or other items, which are legally committed but not expended by fiscal year end. 2. Contingency Reserve. This Reserve has a target balance of ^nom (142-)not less than ten percent (10 %) of annual General Fund eperating expenditures. The City Council authorizes expenditures from this Reserve. 3. Designated Reserves. a. Capital Improvement. Generally accepted governmental accounting practices do not provide for the depreciation of assets of Governmental Funds such as the General Fund. Therefore, special procedures are required to set aside money (a "sinking fund ") for replacement or renovation of fixed assets such as, but not limited to, City Hall and Police Department buildings, Fire Stations, and Library Branches. 31 GJI F -2 The Capital Improvement Reserve will accumulate funds only for infrastructure items financed through the General Fund. Infrastructure assets of Enterprise Funds, as well as those of Governmental Fund, for which non - general fund money is available, are not components of this Reserve. Funds from this Reserve are restricted to replacement or acquisition of periodic, major projects or improvements typically exceeding .7°6 ep rcent of the annual General Fund Operating Budget (not including capital projects). Projects for which this Reserve is intended generally have the effect of extending the useful lives of infrastructure items. The City Manager will update the status of items of the General Fund infrastructure inventory on an annual basis. Included as part of the City Managers budget proposal will be a plan to fund this Reserve at a level of not more than one hundred percent (100 %) of the replacement cost of each asset by the year in which replacement is anticipated. b. Senior Citizen Site. This Reserve is established by Council Policy I -5, which specifies that ten percent (10 %) of revenue collected from rental of facilities at the Oasis Center be set aside for equipment replacement and /or refurbishment at the Center. C. Park Fees. This Reserve contains Park Fees collected by the construction permit process. Use of Park Fees is governed by Council Policy I -1, which limit their expenditure to park, open space, and recreational facilities. d. Off Street Parking. Newport Beach Municipal Code 12.44.025 establishes this Reserve and governs its administration. Fifty percent (50 %) of parking meter revenue collected in designated areas is set aside for acquisition, development, and improvement of off street parking facilities within those areas. e. Neighborhood Enhancement Reserve. Newport Beach Municipal Code 12.44.027 establishes this account and governs its administration. Funds for the Neighborhood Enhancement Reserve are derived from designated parking meters and used for enhancement of services to designated areas. 11 F -2 f. Helicopter Replacement. Each year the Police Department will budget operating funds sufficient for the orderly replacement of police helicopter assets. These funds will be transferred to the Helicopter Replacement Reserve until eventually appropriated by the City Council for a replacement helicopter. g. Paramedic Program (Hoag). This Reserve was established by the City in conjunction with debt issuance agreements with Hoag Hospital. In addition to the original amount(s) deposited to this reserve, effective July 1, 2000, any excess revenues generated by this program, after accounting for General City Overhead of 15 percent, shall be deposited to this reserve account for future paramedic related purposes, to a maximum of $250,000. Funds in this reserve account may be used for any paramedic related purpose as directed by the City Council. Target level for this reserve is 25 ep rcent of the annual budget for operations and capital expenditures. h. Recreational Instruction Reserve. City Council Policy I -2 establishes reserves for surfboard replacement and refurbishment, development of tennis courts, and development of new recreational activities. The Policy requires twenty percent (20 %) of gross annual revenues derived from specified recreational classes be set aside. 4. Stabilization Reserve. The Stabilization Reserve has a target balance of two percent (2 %) of the budgeted expenditures within the General Fund. Each year, the City Manager will analyze uncontrollable revenues and expenditures. When expenditures are required from this Reserve, the City Manager will note the reasons in the preliminary and final budget. The Stabilization Reserve may have subdivisions. B. Water Fund. (City Council Policy L -20 contains additional information concerning budgeting and rate setting within the Water Fund.) 51 F -2 1. Contingency Reserve. a. Water System Reserve. This Reserve is used for emergency repair to the water system. The target level for this Reserve is 25%-percent of the annual budget for operations and capital expenditures. 2. Designated Reserves. a. Future Water Infrastructure Reserve. This Reserve is used for large designated projects that are part of the water distribution system. System replacement/ upgrade and most improvement/ major maintenance projects are funded within that amount. However, certain large -scale projects are projected on a ten -year horizon, which is updated and refined each year. The purpose of this Reserve is to set aside partial funding for those projects in advance. Included as part of the City Managers annual budget proposal will be a plan to fund this Reserve at a level of not more than one hundred percent (100 %) of the projected cost of planned projects by the year in which contract award is anticipated. Projected future costs notwithstanding, a minimum of five percent (5 %) of the annual budget for operations and capital expenditures will be set aside to this reserve each year. The City Council must approve the ultimate fund transfer from this Reserve to a designated Water Enterprise Fund Capital Project Account as part of the Budget process. C. Wastewater Fund. 1. Contingency Reserve. a. Wastewater System Reserve. This Reserve is used for emergency repair to the Wastewater system. The target level for this Reserve is 334 percent of the annual budget for operations and capital expenditures. 2. Designated Reserve. a. Future Wastewater Infrastructure Reserve. This Reserve is used for large designated projects that are part of the City's Wastewater L 3� F -2 system. Funds are reserved for large -scale future projects, which cannot be accommodated within the annual budget of the year in which they are planned. In the years prior to estimated contract award, the City Manager's budget proposal will include a plan to set money aside in this Reserve sufficient to accumulate not more than one hundred percent (100 %) of the projected cost of such projects. D. Internal Service Funds. Internal Service Funds receive moneys from departmental operating budgets. There are two Internal Service Funds: the Equipment Maintenance and Replacement Fund, and the Insurance Reserve Fund. One of the functions of Internal Service Funds is to act as reserve accounts. 1. Equipment Maintenance and Replacement Fund. The Equipment Maintenance and Replacement Fund receives operating moneys from the Departments to provide equipment maintenance and to fund the regular replacement of major pieces of equipment (mostly rolling stock) at their economic obsolescence. a. Equipment Maintenance Account. In order to provide adequate funds for unexpected extraordinary costs due to damage or mechanical failure to a large piece of equipment, five percent (5 %) of the total annual budget for equipment maintenance is retained in the Fund. b. Equipment Replacement Account. Departmental operating funds are charged amounts sufficient for the replacement of rolling stock in accordance with Council Policy F -9. Equipment replacement needs vary from year to year; therefore the year -end Fund balance will fluctuate. It will increase substantially in the years preceding major purchases or when an unusually large percentage of the fleet is scheduled for replacement. The City Manager annually determines and adjusts the rates for collection of funds from the Departments based on pricing, future replacement schedules, and other variables. 7 ,�1 F -2 2. Insurance Reserve Fund. The operating budgets of City's Departments are charged for Liability, Workers' Compensation, and Compensated Absences. a. Liability and Workers' Compensation Accounts. These accounts each serve three purposes: Payment of insurance premiums; Payment of the deductible (self- insured retention) for liability or workers' compensation claims; Reserve for future claims. i. Collection of Funds. Each year, the City Manager will determine and adjust the internal collection rates from the Departments. ii. Short Term Expenditures. The Budget will account for projected expenditures during the coming year. iii. Future Costs. Money will be set aside each year to accommodate projected long term cash outflow. The annual funding level will be sufficient to offset the estimated cost of known claims. Resolution of most claims fall within a three - year window. At this time, the target fund balance each year is fifty percent (50 %) of the estimated overall liability for known or anticipated claims, based on the City's general experience in the past. 3. Compensated Absences. a. Background. Employee benefits such as accumulated flex leave, vacation leave, and sick leave, have a cash value. Accounting practices require that the book value of the City's compensated absences liability reflect the cash outflow as if all absences were cashed out immediately. Much of this cash outflow will never occur, since the benefits will be taken in the form of time off, rather than cash. Additionally, the cash outflow could occur all at once E. F -2 only if the City dissolved and made full payment for all accumulated leave amounts. The largest portion of leave -to -cash conversion is at an employee's retirement. That amount can be estimated with reasonable accuracy. b. Policy and Practice. The City will fund an appropriate amount, but not the entire long -term book liability, for compensated absences. i. Each year, the City Manager will project the amount of expected short -term cash liability for compensated absences and budget expenditures from the Compensated Absences Account. ii. The City Manager will establish a target closing balance that will fund not less than twenty-five percent (25 %) of the long- term liability for compensated absences. Adopted - January 24,1994 Amended - April 10, 1995 Amended - April 27,1998 Amended - March 14, 2000 Amended - March 27, 2001 a 33 BUDGET ADOPTION AND ADMINISTRATION PURPOSE F -3 To establish the policy for the preparation, adoption, and administration of the City's Annual Budget. POLICY A. Organization and Development of the Annual Budget. Each year the City shall prepare and adopt, by formal Resolution, an annual budget as required by the City's Charter and as provided for in the City's Budget Instructions. The City programs expenditures by into four classifications. These are Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures. Capital Expenditures are subdivided into Capital Outlay, which is generally used for items of operating equipment or other purchases in excess of $500.00, and Capital Projects, which generally deal with Public Works related improvements for a distinct and identifiable purpose and function. Budgeted Expenditures for all there our classifications are aligned in the Budget Document by Department Budget Units, which usually coincide with Operating Divisions within the City's organizational structure; and, separately, by Capital Projects. Therefore within each Division Budget, there will be sections for Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Outlay. The section dealing with Capital Projects, which are identified by Fund and purpose, is located after the Division Budgets. During December of each year, the Administrative Services Department shall prepare preliminary fund balance estimates for the current year and preliminary revenue estimates for the next fiscal year. _:--In January of each year, the Administrative Services Department shall prepare a budget calendar and issue budget instructions and expenditure detail to each department for use in preparation of the next year's City budget. Included in these instructions will be budget guidelines and appropriation limits for each department. These guidelines will be developed by the Administrative Services Director and approved by the City Manager. In accordance with City Council Polio (Reserves/ Designations of Fund Balanced the status and possible changes in Reserve Accounts shall be addressed as part of this process. 1 j0 F -3 After submission of revenue and appropriation requests by each department, the Administrative Services Department shall summarize the requests for review by the City Manager and Department Heads depa}t4nent. After review by the City Manager and 4epartmetA the Administrative Services Department shall prepare the City's proposed budget for the next fiscal year and shall submit said proposed budget to the City Council as required by the City's Charter and the Budget Instructions. Thereafter, the City Council shall hold as many budget study sessions as it deems necessary. Council budget study sessions shall be recorded. All proposed Council changes in the City Manager's proposed budget shall be added to a budget checklist. Subsequent to Council review and prior to its final adoption, the City Manager shall provide each Council Member with an itemized list of all proposed changes to permit a roll call vote by the City Council on each item during the budget hearting at ffie reg+4ara Council meeting. The City Council shall hold a budget hearing and shall adopt a budget on or before June 30 as required by the City Charter. B. Administration of the Annual Budget. During the budget year, Department Heads and their designated representatives may m^•om— authorize only those ex}�ea'z -i a?ts —e penditures that are based on appropriations previously approved by City Council action, and only from accounts under their organizational responsibility. In addition, budget expenditures may only be authorized in the year appropriated. Any unexpended appropriations, except valid encumbrances, expire at fiscal year end unless specifically reappropriated by the City Council for expenditure during the new fiscal year. Department Heads are responsible for not authorizing expenditures above budget appropriations in any given area, without additional appropriation or transfer as specified below. 1. New Appropriations. During the Budget Year, the City Council may appropriate additional funds for special purposes by a City Council Budget Amendment. The City Manager has authority to approve requests for budget increases not to exceed $1,2000 in any Budget Activity or Capital Project. (This must be specifically included in each year's Budget Resolution to remain valid.) " F -3 32. Donations. The City Manager may accept donations or grants of up to $5,000 on behalf of the City and appropriate the funds for the purpose intended. The City Council will be formally notified of such actions on a quarterly basis by way of a Council Meeting agenda information item. (This provision must be specifically included in each year's Budget Resolution to remain valid.) 3. Transfers. During the fiscal year, actual expenditures may exceed budget appropriations for specific expenditure line items within departmental budgets. if a total departmental budget within a specific Classification is not exceeded, the Administrative Services Director has the authority to transfer funds within that Classification and department to make the most efficient use of funds appropriated by the City Council. (Salaries and Benefits, Maintenance and Operations Other Charges and Capital Outlav are the Citv's three four Classifications.) 4. Realignments. Further, funds may be realigned between one Department Budget Activity and another, within the same Classification, with City Manager approval. For example, if a Fire & � ^�a=,e Department function and the employee who accomplishes it are replaced by a slightly different function assigned to the Police Department, the City Manager may authorize the transfer of appropriate salary and i-, nef funds to support this function. 5. Reprogramming. Any reprogramming of funds among the three Classifications (Salaries and Benefits, Maintenance and Operations, and Capital Outlay) within a given fund requires the City Manager's approval Any budget revision that changes the total amount budgeted for any fund (other than the minor provisions contained in paragraphs B.1. and B.6.b.) must be approved by the City Council. ' approval by Budget Amendment. The CityManager ffia), authorize up to $30,900 into or out of > Classification witkin, any r budget S-30,099 requires Qt�' Council appEoval. 3I F -3 6. Capital Projects. The Department Head having primary responsibility for a Capital Project; (usually the Public Works Director) is authorized to aetua4 -encumber and approve subsequent expenditure of City funds for Capital Projects. However, contracts in excess of $30,000 require specific City Council authorization at the time of contract award. In addition, any contracts not of format and wording already approved by the City Attorney require specific City Attorney review and approval prior to contract award. Once a contract has been awarded, change orders may be approved by the Public Works Director, or other Department Head having responsibility for the Project, so long as the net total amount committed to the Project remains below 11036 ercent of the original contract award amount; and so long as the original amount appropriated for the Project by City Council is not exceeded. Change orders exceeding those thresholds may be approved by the City Manager as follows: a. Total project spending may not exceed 12546-percent of the original contract award amount without City Council approval. b. The total amount authorized for a project may be increased by transferring funds from one Project to another, so long as the new total does not exceed 110°6 ercent of the original amount appropriated by Council. In all instances, notification of any changes to capital project contract amount or budget authority must be communicated to the Administrative Services Director. All unexpended and unencumbered capital projects will be canceled on June 30 of each fiscal year. The appropriation balance of these canceled projects will be p!aeed— recorded in a— the °Reserve for Capital PrejeEtslmprovements or another appropriate Reserve Account Uv the Administrative Services Director at fiscal year end (see also paragraph C -2 belov, All_S'zEh canceled i-4e. must et with other projects for 41 F -3 7. Reserves. Funds from unappropriated contingency reserves may be transferred to active Classification accounts only by City Council Budget Amendment. C. Additional City Council, City Manager, and Administrative Services Director Responsibilities. The Administrative Services Director is responsible for checking purchase requests against availability of funds and authorization as per the approved Budget. The City Manager is responsible for approving expenditures which do not conform witkto the approved Budget, but which fall within the exceptions noted in this policy statement. It is the responsibility of the City Manager to administer the City's budget within the framework of policy and appropriation as approved by the City Council. 1. Special City Council Expenditure Approval. Once the final Budget has been approved by the City Council, specific City Council approval to make expenditures consistent with the Budget will not be required, with two exceptions (see also Purchasing and Accounts Payable Procedures): a. Capital Projects in excess of $30,000. b. Consultant Contracts in excess of $30,000. All other budget administration actions, including the routine filling of vacancies in staff positions authorized within the Budget, will not require further City Council approval. However, new positions and other new expenditures do require City Council approval, and the City Council and City Manager reserve the right to impose any special fiscal control measures, including a personnel hiring freeze, and other spending controls, whenever circumstances warrant. Since the annual Budget is approved by formal Resolution, a request by a City Council Member for review of a portion or portions of the Budget, with a view toward changing amounts' appropriated or the purposes for which they were appropriated, requires a majority vote of the City Council. 51 F -3 2. At fiscal vear end, the Administrative Services Director is authorized to realign, reprogram, and /or transfer money among accounts within each Fund in order to close the books of accounts of the City of Newport Beach in accordance with generally accepted overnmental accounting principles as established by the Government Accounting Standards Board, Government Finance Officers Association, and other appropriate accounting or auditing pronouncements. Any net shortage within a Fund will be recorded as a decrease in Fund Balance and reported to the City Council. Anv net excess will be recorded as an increase to one or more appropriate Reserve Accounts as recommended by the Administrative Services Director and approved by the City Manager. (Information regarding appropriation of Funds from the Reserve Accounts is contained in Citv Council Policy F -2.) Adopted - January 24,1994 Amended - February 27,1995 Corrected - February 26,1996 Amended - May 13,1996 Amended - May 26,1998 Amended - August 8, 2000 Amended - March 27, 2001 Formerly F -10, F -11, F -12, and F -21 a 10 Cj NEW OR EXPANDED REVENUE MEASURES Memo= In order that budget preparation may proceed on an orderly basis with adequate time given to consideration of all matters, and in order to establish a basis for staff recommendations on revenue matters, the following policies are established. A. Revenue measure changes may be processed at any time during the entire fiscal year. However, the normal procedure will be to introduce them at the outset of the of active budget preparation process. Changes should ordinarily become effective at the start of the new fiscal year. B. Special services, which can be identified with the recipients, will be self - supported from service fees to the maximum extent possible. Service fees shall be established in compliance with applicable State law, and shall be periodically reviewed for compliance with applicable State law. C. Every reasonable effort will be made to establish revenue measures which will cause the transients and recreation visitors to Newport Beach to carry a fair portion of the expenses incurred by the City as a result of their use of public facilities. D. At the outset of the budget cycle, and when requested by the Administrative Services Director, each department shall provide the Administrative Services Department a listing of the fees imposed by department. This listing shall identify the estimated costs to the City in providing the product or service associated with each fee as well as any recommended revision in the fee. ^ survey of the similar fee charged ° ifies shall ac-eempany any fee l for- r-evisionz E. The Administrative Services Department, with the assistance of the initiating department, shall present for City Council review any new or revised revenue measures. The Administrative Services Department shall endeavor to consult with private individuals, business groups and q0 individual business persons on the economic impact any recommended revenue measure changes may have on them, including but not limited to the City's Economic Development Committee and the Newport Harbor Area Chamber of Commerce. Their response, the estimated costs to the City in providing the product or service and the recommended revision to the revenue measure shall be included in the information forwarded to the City Council. F. Whenever possible, any revenue measure that requires a public hearing will be held in conjunction with the public hearing on the proposed budget. Adopted - August 26,1968 Reaffirmed - November 12,1968 Reaffirmed - March 9,1970 Reaffirmed - February 14,1972 Reaffirmed - December 10, 1973 Reaffirmed - November 11, 1974 Amended - January 24,1994 Amended - February 27,1995 Corrected - February 26, 1996 Amended - May 26,1998 Amended - May 8, 2001 Formerly F -13 CITY VEHICLE/ EQUIPMENT REPLACEMENT GUIDELINES PURPOSE F -9 To establish the policy to insure that the full service life of each City vehicle or item of equipment is achieved and that uniform guidelines be implemented among all departments. POLICY It shall be the policy of the City that the replacement of all motor vehicles shall be normally based on the following schedule: Police Patrol/ Traffic Vehicles 75,000 miles or 4 years Police Motorcycles 60,000 miles or 5 years Beach Vehicles 4 Years Sedans and Station Wagons 80,000 miles or 8 years Pickup Trucks (1/4 to 3/4 Ton) 85,000 miles or 9 years Vans, excluding Paramedic Vans 80,000 miles or 8 years Paramedic Vans 80,000 miles or 6 years Heavy Trucks (1 Ton and larger) 100,000 miles or 9 years Refuse Trucks 100,000 miles or 8 year Paint Stripers 9 years Beach Cleaners 8 years Street Sweepers 8 7 years Small Boats 10 years Small Emergency Boats 12 years Large Emergency Boats 25 years Heavy Equipment 10 years or 5,000 hours Trailers 12 years Refuse Transfer Trailers 66years Vactors /Sewer Rodders 10 years Welders, Saws, Pumps 42 10 years Saws 10 dears Transfer Equip (Radios/ Beacons) 8 years Fire Engines/ ontline 1-5 10 years Fire Eagines/Reserve Fire Trucksa Fire Trucks Rese °e 20 years 20 15 years 25 }Fears 1 iIn F -9 After these milestones are reached, the General Services Department shall inspect the equipment annually to determine the appropriateness of replacing the vehicles. Factors to consider include, but are not limited to, maintenance and upkeep costs, fuel efficiency, etc. Adopted - December 14,1992 Amended - January 24,1994 Amended - March 27,1995 Formerly F -26 Amended - XXXXX xx, 2001 `a q's ACKERMAN TRUST PURPOSE f2- i('0 To establish City policy for the distribution of the proceeds of the income from the Ackerman Property. POLICY Per the terms of the Carl Ackerman Family Trust, the proceeds of the lease revenue for certain property in McFadden Square is to be divided between the University of California, Irvine, and the City of Newport Beach. The proceeds are to be distributed as follows: Sixty (60) percent of the proceeds are to be distributed to the University of California, Irvine, to be used for scholarship funding for needy qualified students. Forty (40) percent of the proceeds are to be distributed to the City of Newport Beach to be used in the following manner: Seventy-five (75) percent of the City's share shall be used to acquire high -tech library equipment. Twenty-five (25) percent of the City's share shall be used for scholarship funding for needy qualified students. This scholarship fund shall be open to children of City employees and to a child who resides in Newport Beach. The following procedures are established to meet the terms of the Ackerman Trust. The City shall deposit all proceeds from the lease of Ackerman property into an expendable trust fund. Periodic payments shall be made from this expendable trust fund, to the University of California, Irvine, in the amount of sixty (60) percent of the proceeds. Periodic payments shall be made from this expendable trust fund to the City of Newport Beach Library Fund in the amount of thirty (30) percent of the proceeds to be used for the acquisition of high tech library equipment. Periodic payments shall be made from this expendable trust fund to the City of Newport Beach Scholarship Fund in the amount of ten (10) ppereent of tl pTdS to be fer- schelaFship funding for needy qualified students. It shall be at the City's discretion what high tech library equipment to acquire, and how to award the scholarship funds to needy qualified students. Adopted - January 24,1994 Amended - May 8, 2001 unsaved: ///newpage4l.htm Page 1 of 4 -�� Ola) ECONOMIC DEVELOPMENT POLICY The City Council recognizes that the City's ability to deliver quality municipal services is dependent on adequate tax revenues derived primarily from the property and businesses located within the City. Healthy, thriving businesses not only increase sales and bed taxes, but also enhance the value of commercial property and hence property taxes. Residential property values also increase commensurate with employment opportunities. The City Council seeks to promote economic activity within the City to increase the revenues available to provide municipal services. The goal of the City Council is to balance the needs for Economic Development with other City polices and ordinances relating to health and safety, environmental protection, and infrastructure maintenance. Consistent with this goal, the City Manager under the general direction of the City Council Ad Hoc Economic Development Committee shall insure that appropriate City departments conduct the following activities. DATA AND ANALYSIS Data shall be compiled and analysis conducted to: A. Identify those businesses and activities which comply with other City plans and policies and which also generate substantial municipal revenues. B. Identify, where possible, specific addresses and owners of businesses and economic activities which generate municipal revenues. C. Estimate taxes, fees and other municipal revenues from various land use categories including residential densities. D. Display geographic distributions of revenue generators within certain areas and retail centers within the City. E. Maintain a fiscal impact analysis system to assess the fiscal impact of land use conversions and development. F. Estimate the time required to issue various permits, entitlements and licenses within the City. G. Assess cost /revenue aspects of tourism within the City. H. Assess potential of City property and assets to promote those businesses and activities that generate municipal revenues. I. Provide, when necessary, assistance to the City Council and City staff to accomplish http: / /www.city.newport- beach .ca.us /CouncilPolicies/F -I Thtm 04/01/2001 5 unsaved: ///newpage4l.htm Page 2 of 4 the purposes of this Policy. J. Provide an overview of City revenues and expenditures to enable the public to critique the City's budget practices. REGULATORY AND LAND USE ACTIONS Based upon the data and analysis referenced above, all major planning, development, zoning, regulatory and permitting decisions made by the City shall include a review of the economic implications of such action. Toward that end, the following shall be accomplished. A. Major development projects and General Plan amendments shall include an economic development component. B. All major zoning, subdivision and development permits considered by the City Council or Planning Commission shall be accompanied by an economic analysis describing the cost and revenues to the City associated with the actions. Land use conversions shall be accompanied by a before and after cost /revenue analysis. C. Cost estimates of City imposed conditions on development projects that are provided by project sponsors shall be reviewed by the City Council or Planning Commission at the time such conditions are considered. D. All amendments proposed by the City to building, construction and utility codes/ regulations shall be accompanied by an analysis of the costs associated with compliance with such amendments. E. Project proposals shall be evaluated as early as possible in the permitting process to determine their potential to generate substantial municipal revenues and to determine what measures, if any, may be employed to fast track the proposal. BUSINESS RELATIONS AND MARKETING It is the policy of the City Council that developers, businesspersons and other private individuals shall be consulted on the economic cost of various decisions made by the City. Further, the City Council desires that efforts be made to attract and retain those businesses and economic activities, which serve to increase municipal revenues in a manner consistent with other City plans and policies. To further this policy, the following shall be accomplished. A. City representatives shall meet periodically with the various Chambers of Commerce, business groups and individual business owners to assess the economic impacts of City regulations, to explore areas of financial mutual interest and to provide, where possible, City assistance to retain in the City those businesses, which generate municipal revenues. http: / /www.city.newport- beach .ca.us /CouncilPolicies/F- 17.htm 04/01/2001 y0 unsaved: / / /newpage4l .htm Page 3 of 4 B. The City shall provide a forum for groups and individuals seeking relief from City regulatory actions as a means to increase profitability. C. The City shall consider the appointment of a staff economic development coordinator who may also serve as a business development facilitator or a project ombudsman. D. The City shall consider actions to assist priority economic development projects obtain approvals from other regulatory agencies. E. The City shall consider ordinances or other means to provide financial incentives such as sales tax rebates to attract revenue generating businesses and activities to the City. F. The City shall consider actions to promote land use conversions and improvements such as redevelopment, assessment districts, loan programs, etc. G. The City shall develop a comprehensive marketing and public relations program to attract and retain revenue generating businesses and activities. The program shall: 1. Create and maintain a comprehensive market - related database (e.g. labor pool, land /housing cost, community assets, etc.) for distribution to businesses. 2. Develop and update professional marketing materials including advertisements, promotional brochures, City exhibits, media kits, videos, and maps, perhaps incorporating a promotional theme and logo in all such materials. 3. Develop a prospect response system including reception team, tour and materials. 4. Consider a public relations plan including advertising and editorial placement, participation in conferences and trade shows, media campaign, direct mail and special events. 5. Encourage joint marketing efforts with outside groups such as real estate brokers, developers, utilities, Visitors and Convention Bureau and other economic development groups. 6. Increase local and regional business and citizen awareness of economic development goals and activities. Adopted - March 22, 1993 http: / /www.city.newport- beach .ca.us /CouncilPolicies/F- 17.htm 04/01/2001 y 1 unsaved: ///newpage4l.htm Amended - January 24, 1994 Formerly F -28 RETURN TO TABLE OF CONTENTS RETURN TO CITY OF NEWPORT BEACH HOME PAGE Page 4 of 4 http: / /www.city.newport- beach .ca.us /CouncilPolicies/F- 17.htm 04/01/2001 (� HARBOR PERMIT POLICY HARBOR INSTALLATIONS GENERAL A. Shore connected piers and floats bayward of residential zoned areas shall be reserved for the occupants of the abutting upland property and controlled by the Harbor Permittee. Vessels moored at residential piers shall not create a nuisance with regard to vehicle parking, vessel waste, liveaboards, or noise disturbances to adjoining residents. B. Shore connected piers and floats bayward of commercial -zoned areas may be used by persons other than the occupants of the abutting upland property. C. Only piers, floats, certain patio decks and their appurtenances shall be permitted between the bulkhead and pierhead lines. D. No private piers shall be permitted at street ends. E. In R -1 zones, only a single pier and float or slip shall be permitted bayward of each parcel or lot. DEFINITIONS A. The term "Pier" shall mean any fixed or floating structure for securing vessels, loading or unloading persons or property, or providing access to the water, and includes wharf, dock, float, or other landing facility, and dry dock. B. The "Harbor Lines" are established Bulkhead, Pierhead, and Project Lines. C. The "Bulkhead Lines," as established, shall define the limit of solid filling or solid structures. D. The " Pierhead Lines," as established, shall define the limit for pier and float -type structures. E. The 'Project Lines" shall define the channel lines of the improvements and by the Federal Government in 1935 -36. F. The term "Liveaboard" shall mean the use or occupancy of a vessel for living quarters either permanently or on a temporary basis for a period exceeding 3 days. G. The term "Standard Drawings" refers to Standard Drawings adopted by the City of Newport Beach as minimum standards of construction whenever harbor permits are required. H. The term "Design Criteria" refers to Design Criteria adopted by the City of Newport Beach as minimum standards for design whenever harbor permits are required. I. The term "Mean Low Low Water" is abbreviated, M.L.L.W., and refers to the lowest tide of the daily two -tide cycle. H PERMITS REQUIRED A. No person or agency shall build, maintain, extend or make structural alterations on any building, pier, piling, bulkhead, sea wall, reef, breakwater, or other structure in, upon or over the waters of Newport Harbor or the Pacific Ocean or any other water where the tide ebbs and flows within the City, or do any filling, excavating or dredging in said waters or ocean, without first obtaining a written "Harbor Permit" to do so from the City's Fire and Marine Depar-tfnentHarbor Resources Division. B. The Orange County District may do construction work or fill or dredge within Newport Harbor, or cause the same to be done, without such a permit so long as such work is done pursuant to a harbor development plan on lands not owned by the City or pursuant to a request therefore by the City Council. C. A separate permit will be required by the Building Department for any bulkheads, cantilevered decks, and plumbing and electrical work on harbor structures. GENERAL PROVISIONS FOR HARBOR PERMITS A. Ac�tance of Provisions. It is understood and agreed by the Permittee that the doing of any work under the permit shall constitute an acceptance of all the provisions. B. Permit from Other Agencies. The party or parties to whom the permit is issued shall, whenever the same is required by law, secure the written order or consent to any work hereunder from the U.S. Corps of Engineers, California Coastal Zone Commission, or any other public body having jurisdiction, and the permit shall be suspended in operation unless and until such order or consent is obtained. C. Transferring Permit. The permit is not transferable without the written consent of the City of Newport Beach. D. Inspection. Bulkheads, cantilevered decks, plumbing and electrical work are subject to inspection by the Building Department for conformity with the Uniform Building Code. Piers, ramps, floats and pilings are subject to inspection by the Public Works Department. E. Protection of Traffic. Adequate provisions shall be made for the protection of the traveling public. Barricades shall be placed on streets with lights at night, also flagmen employed, all as may be required by the particular work in progress. The Permittee shall not attempt to forbid the full and free use by the public of all navigable waters at or adjacent to the work or structure. If the display of lights and signals on any work hereby authorized is not otherwise provided by law, such as lights and signals, as may be prescribed by Bureau of Light Houses, Department of Commerce, shall be installed and maintained at the expense of the Permittee. Structures shall be so constructed as not to obstruct, interfere with or prevent the free use or passage of any sidewalks, street, alley, public way or navigable channel. 50 F. Liability for Damages. The Permittee is responsible for all liability for personal injury or property damage which may arise out of work herein permitted, or which may arise out of the use or possession of said works, and in the event any claim is made against the City of Newport Beach or any department, officer, or employee thereof, though, by reasons of, or in connection with such work, permittee shall defend, indemnify and hold them and each of them, harmless from such claim. G. Revocation of Permit. The rights given under this permit are permissive only and the City of Newport Beach reserves full right, power and authority to revoke this permit at any time. In the event the Permittee fails to remove said works within the time specified, then the Fire an Mar -it+e AepartaiefftHarbor Resources Division shall have the right to immediately remove same at the cost and expense of the Permittee. H. Repairs. The Permittee shall keep the structures in good repair at all times. Failure to repair, when written notice has been given by the Harbor Resources Division, shall be cause for the revocation of the permit. 1. Pollution Control. The Permittee shall maintain the area delineated on the harbor permit free and clear from beached or floating rubbish, debris or litter at all times. Adequate safeguards shall be maintained by the Permittee to avert any other type of pollution of Newport Harbor from recreational and /or commercial use of the tidelands. Failure to comply with the provisions of this section shall be cause, after written notice has been given to the Permittee by the City, for the revocation of the permit. When unusual circumstances arise with respect to the collection of debris or litter, the City Manager may authorize by the use of City forces or by contract the removal of said debris. J. Rights to Impose Rental or Other Charges. The approval of the foregoing permit by the City of Newport Beach shall not constitute a waiver of any rights which it may now have or hereafter have to impose rental or other charges in conjunction with the maintenance of the proposed facility and user of the same. The imposing of tidelands rental, or use, fees shall not be extended to include private residential piers and slips, constructed and used solely by the abutting uplands owner for recreational purposes, unless otherwise directed by State mandate. K. In those areas of the harbor where the piers and floats are bayward of residential zoned areas and are reserved for the occupants of the abutting upland property, liveaboards shall not be permitted. L. Special Event Permits. If a Harbor Permittee proposes a use of the harbor installation, other than that allowed by the Newport Beach Municipal Code or the Council Harbor Permit Policy, he /she must first obtain a "Special Event Permit" as provided by Section 510 of the Newport Beach Municipal Code. Upon issuance of the Special Event Permit, the City of Newport Beach may impose conditions on the permit to assure that the proposed use does not affect the health, safety or welfare of the residents of Newport Beach. (�I ISSUING OF PERMITS A. The Fire and Marine Peparbnet+fflarbor Resources Division is authorized to approve and issue new permits and revisions to existing permits that conform to the standard harbor drawings and the adopted Harbor Permit Policy in conjunction with plan reviews by the Public Works Department and the issuance of a Building Department permit when applicable. B. Prior approval of the U.S. Corps of Engineers will be required before issuing any permit. Application to the U.S. Corps of Engineers may be made on forms provided by the U.S. Corps of Engineers. C. Prior approval of Orange County will be required when work extends over tidelands claimed by the County. D. Before issuing a Harbor Permit, for any work on oceanfront beaches or for any unusual type of harbor structure, or for a structure on which the applicant proposes a use that is not in keeping with the surrounding area, all property owners or long term lessees within 300' of the proposed work shall be notified in writing by the Harbor Resources Division of the pending application. Notice will be sent ten (10) days prior to a decision by the Harbor Resources Division, and after the Department has rendered a decision. The permit shall not be issued until the appeal period provided in Newport Beach Municipal Code Chapter 17.24 has run. E. A written permit for maintenance is required from the Harbor Resources Division for any structural or work where the cost for such work, including labor and materials, would normally exceed $200. Painting, replacement of rub -rails and work considered cosmetic in nature does not require a permit. F. Prior to the issuance of a permit, the applicant will show proof of coverage as required by the Longshoremen's and Harbor Worker's Compensation Act. APPLICATION FOR HARBOR PERMITS A. Applications for authority to erect, revise and do maintenance work on structures shall be submitted to the Fife and Mmrine Departinent!HLarbor Resources Division upon forms provided therefor. Plans showing the location, extent and character of the proposed work and required fees shall accompany the application. B. The application must be signed by the fee owners or any long -term lessee of the abutting upland property. Long -term lessee shall be defined as a party having a leasehold on the property for a period greater than 5 years. C. Applications for joint ownership piers shall be signed by all fee owners or any long -term lessee of the abutting upland properties. PLANS TO ACCOMPANY PERMIT APPLICATIONS A. Plans accompanying the application will form a part of the permit and must be carefully prepared in the form prescribed. B. Number of plans submitted shall be determined by the Harbor Resources Division, Public Works Department and Building Department, depending on the nature of the work. C. Plans shall include the following: 1. Date of drawing and origin. 2. Location and dimension of proposed structure including piles and location of existing structures on adjacent properties. 3. Location of bulkhead, pierhead, and project lines. 4. Location of U.S. Bulkhead stations. 5. Location of property lines. 6. Location of channel markers. 7. Lot sizes and lot numbers. 8. Existing ground profile beneath proposed structure. 9. Elevation of top and bottom of bulkheads and piles with respect to M.L.L.W. 10. Area and profile of any proposed dredging with elevations showing depths with respect of M.L.L.W. 11. Any existing conditions affecting the construction or docking operation. 12. Construction design details, PLANS, SUBSTANTIATING CALCULATIONS AND SPECIFICATIONS FOR piers, pier platforms, ramps, floats, pilings, etc., as prescribed by the Public Works Department. D. Drawing size shall be 8-1/2" x 11 ",11" x 22 ", or 21" x 31 ". E. Scale shall be adequate to clearly show the above information. F. Existing structures shall be shown in light dashes. New work shall be shown in heavy solid lines. l� EXPIRATION OF PERMIT A. The time limit for the completion of all work authorized by a permit shall be 180 days from date of approval. B. All permits shall expire unless the work contemplated shall have been completed within the time limit specified. C. If the work contemplated has been started and diligently prosecuted but not completed in the time limit specified, a time extension may be granted by the F' -^ and Marin Depa A- entHarbor Resources Division upon receipt of a written request from the Permittee. BOND REQUIREMENTS If the nature of the proposed work is such that if left incomplete it will create a hazard to human life or endanger adjoining property, a cash bond or surety bond satisfactory to the City Attorney in the sum of 100 percent of the estimated cost of the work will be required to guarantee the faithful performance of the proposed work. TRANSFER OF PERMITS A. Permits for harbor structures are issued subject to the condition that any improvements constructed shall not be sold in whole or part, leased, or transferred, without the written consent of the City. B. Whenever a permittee sells the abutting upland property, a request shall be made to the City to transfer the permit. Forms for this purpose may be obtained from the u'-^ ^41e PeparbnenFHarbor Resources Division. Failure to apply for a transfer within 30 days from the date that the abutting upland property changed ownership will result in an additional fee by the City. C. The F'°••^ and Marine Pe °°`i^ Harbor Resources Division is authorized to approve transfers to the new owners or long -term lessee of the abutting upland property. D. Prior to the transfer of a Harbor Permit, all harbor structures shall be inspected for compliance with the City's minimum plumbing, electrical and structural requirements, and the conditions of the existing permit. All structural deficiencies must be corrected prior to the transfer of the permit. A fee will be charged for this inspection, established by Resolution of the City Council. SI DREDGING A. All dredging will require a permit from the Fire and Marine DepartmeR Harbor Resources Division and may be subject to engineering approval by the Public Works Department. B. Major dredging outside the established harbor lines will require prior approval by the Eire and Marine PepafttRen Harbor Resources Division and the U.S. Corps of Engineers. C. Maintenance dredging bayward of residential and commercial property shall be the responsibility of the Harbor Permittee for the zone delineated by the bayward prolongations of upland side property lines and the U.S. Project line. FEES A. INITIAL PERMIT FEES Less than 20% replaceffient. 0 the existing striaEbare, a new permit will be required. The Harbor Resources Division may charge the fees identified in the Master Fee Schedule for initial permits and for pier fees. Initial 1ernut fees do not include Building Department fees, but they do include Public Works Department fees. O Building Department pe ffnit fees are of knel .d,.d in the „r.oye 4-P. Publ:,. I.eL.rks Department ent fees are :4.,.1.. .Jed in the al. Ewe B. PIER FEES Annual pier fees are due and payable on 1 March in accordance with the €ellewingschedule identified in the Master Fee Schedule.- a a s 1. marl All commercial piers over City Tide and Submerged Lands will be billed annually as follows: a. Permittees having commercial piers over City Tide and Submerged Lands shall, for 1994 -95, pay an annual rent of 2misidentified in the Master Fee Schedule per- or each square foot of permit area (base rental). b. Annual rent shall be paid on or before March 1. c. The Base Rental shall be adjusted annually to reflect the increase or decrease in Consumer Price Index (CPI) for 4, 4989 and eading Nevember 30, 4990, and each twelve month period'- - ,-her=eafter -. The CPI (all urban consumers, all items) for the Los Angeles -Long Beach - Anaheim, California area as published and released by the Bureau of Statistics for the U.S. Department of Labor shall be the index utilized for calculating the rental adjustment. d. The base rental shall be recalculated every ten years pursuant to an appraisal commissioned by the City of Newport Beach. In determining the value of tide and submerged lands, the appraiser shall consider the fact that commercial use of publicly owned tidelands is economically feasible only in conjunction with privately owned uplands. e. All appraisals shall be conducted by an MAI appraiser(s) with membership in the American Institute of Real Estate Appraisers and experienced in assessing the value of tidelands. f. The provision of this subsection shall not apply to tidelands subject to a written lease requiring the payment of rent based on gross receipts. 5� STANDARD DRAWINGS The following Standard Drawings have been approved and are on file in the Public Works Department: recast Reinforced Concrete Groin Panel Dwg. No. STD -600 -L etail For Raising Bulkheads Dwg. No. STD -601 -L rand Canal - Platform and Steps Type I Dwg. No. STD -602 -L rand Canal - Platform and Steps Type II Dwg. No. STD -603 -L Ingle or Joint Residential Use Gangway Dwg. No. STD -604 -L Ingle Residential Use Float Without Pier 1Dwg. No. STD -603 -L Angle Residential Use Float West Newport Channels Dwg. No. STD -606 -L ommercial Pier and Float Installation Dwg. No. STD -607 -L Ingle Residential Use Float With Pier Dwg. No. STD -608 -L Ingle or Joint Residential Use Pier Sections Dwg. No. STD -609 -L Ile Details Dwg. No. STD -610 -L ye Bolt For Boat Anchorage Dwg. No. STD -611 -L angway Hanger Bracket Dwg. No. STD -612 -L atum Planes wg. No. STD -613 -L [Natural Sand Profiles in Newport Harbor IDwg. No. STD -614 -L DESIGN OF STRUCTURES A. Design of harbor structures that do not conform to the Standard Drawings contained within "Design Criteria and Standard Drawings for Harbor Construction," needs the approval of the Public Works Department prior to the issuance of a harbor permit. B. Harbor structures shall be designed in accordance with design criteria adopted by the City of Newport Beach and contained within "Design Criteria and Standard Drawings for Harbor Construction." C. The decking of all piers and pier platforms shall not exceed an elevation of 9.0 M.L.L.W. nor be less than an elevation of 8.0 M.L.L.W. JOINT OWNERSHIP PIERS A. Permits may be granted for joint ownership piers at the prolongation of common lot lines subject to the following conditions: 1. No permits will be granted to persons other than the owners or long -term lessee of the abutting upland properties. i )� 2. The permit application must be signed by the fee owners or long -term lessee of all abutting upland property having access to the facility. 3. The permit shall provide that all parties shall have equal rights under the permit and shall be held jointly responsible for compliance with all rules, regulations, and conditions set forth in the permit. B. The policy for setbacks applies to joint ownership piers with the exception that the slips, floats and piers may extend over the common property line. I *II a14am f ;� A. All bulkheads in residential districts shall be installed on the established bulkhead line or at a location behind the bulkhead line that would preserve the design profile of the harbor. Any retaining or ornamental wall installed landward of the bulkhead line shall be considered a bulkhead if it also serves to contain the waters of the harbor and shall be processed in the same mariner as if it were on the bulkhead line. The Harbor Resources Division may issue permits for bulkheads, between U.S. Bulkhead Station Numbers 112 -109 not to exceed the bayward side of the "Vacated East Bay Avenue." U.S. Bulkhead Station 104 for the addresses at 2209, 2223, 2227, 2231 and 2233 Bayside Drive: Staff recommendation for a bulkhead at these properties shall not exceed a point bayward of the average high tide line established at a point 40 feet landward of the face of the bulkhead at the property at 2137 Bayside Drive, and then on a straight line from that point to the bayward most point of the bulkhead at the property at 2301 Bayside Drive. B. Bulkheads shall be at the existing height established for the area and shall be connected to adjacent bulkheads. In cases where no adjacent bulkhead or bulkheads exist, a wing wall or wing walls shall be constructed from the bulkhead landward adequate to contain the fill behind the bulkhead constructed from the bulkhead landward adequate to contain the fill behind the bulkhead. No solid or masonry structure shall be constructed on a bulkhead. C. The height and design of all bulkheads and wing walls shall be subject to the design and construction standards of the Building Department. D. All bulkhead permits may be subject to a detailed construction drawing being approved by the Building Department. Drawings signed by a Civil or Structural Engineer may be required and shall clearly show the following: 1. Exact location of bulkhead and anchor blocks. 2. Top and bottom elevations. 3. Design loads and any surcharge loading. 4. Depth of dredging and any sounding data. 5. Details of returns or connection to existing walls. 6. Any special conditions affecting bulkhead construction or design. E. The bulkhead shall not be used to support any structure on the abutting upland property unless the bulkhead has been properly designed to carry the additional loads. F. In areas where there is existing development and it is of direct benefit to the City to have a bulkhead constructed, the City may contribute 1/3 of the cost of constructing a bulkhead across street ends. PARKING REQUIREMENTS A. All commercially operated boat docking facilities shall provide 0.75 parking stalls for each single boat slip and 0.75 parking stalls for each 25 feet of available mooring space not classified as a slip. B. For dry boat storage areas, 0.33 parking stalls shall be provided for each storage space available. C. For floating dry docks, at least two (2) off - street parking stalls shall be provided exclusively for each dry dock. D. All parking shall conform to the City of Newport Beach off - street parking standards. E. Commercial Activities Permits 1. On-site Parking a. On -site parking shall be provided as follows: i. Charter vessels: one parking space for each three occupants, including crewmembers; ii. Sport fishing vessels: one parking space for each two occupants, including crewmembers. b. Said on -site parking shall be provided on the adjoining upland property. If adequate parking is not available on -site, all or a portion of the required parking spaces may be provided at an off -site location, subject to the approval of the Fire and MariRe ChieiAssistant City Manager and the Planning Director. The use of an off -site lot shall not be approved unless: i. Such is so located as to be useful in connection with the use of the vessel. ii. Parking on such lot will not create undue traffic hazards in the surrounding area. iii. Such lot and the adjoining upland property are in the same ownership and the owner is entitled to the immediate possession and use thereof. Ownership of the off -site lot is defined as ownership in fee or a leasehold interest of a duration adequate to serve the proposed commercial activity. c. When a vessel will not offer services to the general public, all or a portion of the required parking may be provided at a remote off -site location, if transportation is provided from the off -site parking location to the site where the vessel is moored. Parking for the shuttle vehicles must be provided near the site where the vessel is moored unless said vehicles will be stored at the remote off - site location at all times when not in use. d. If the use of the off -site parking location is approved, the owner(s) and the City shall execute a written instrument (the form and content of which is acceptable to the City Attorney) providing for the maintenance of the required parking spaces on such lot for the duration of the commercial activity. Said instrument shall be recorded in the office of the County Recorder prior to issuance of a Commercial Harbor Activities Permit, and copies thereof shall be filed with the Fire and Marine Departmen HHarbor Resources Division. SAFETY REQUIREMENTS A. All commercially operated boat docking facilities shall be equipped with fire fighting facilities as specified by the Fire and ^ Chief of the City of Newport Beach. B. Any electrical service upon any pier, dock or float shall be installed under a permit obtained from the City of Newport Beach Building Department. C. Any domestic water service upon any pier, dock, or float shall be installed under a permit obtained from the City of Newport Beach Building Department. D. All commercial piers, floats or docks used for the loading of passengers, shall be lighted in such a manner as to provide an illumination level of 0.5 -foot candles for all areas used for the loading of such passengers. SANITARY REQUIREMENTS A. A permit for a pier, dock or float shall not be issued until the rough plumbing for the dwelling unit or the required restrooms serving such pier, dock or float, has been installed and approved by the City Building Inspector. The use of a pier, dock or float will not be allowed until restroom facilities are completed and in operation. B. All public or private commercially operated shore - connected boat anchorages shall have a minimum of two restroom facilities, one for women and one for men, for each 20 boat slips or boat berths available in the anchorage area. The minimum walking distance from the farthest boat berth to the restroom facility shall not exceed 400 feet. is C. Sewage Pumping Facilities. Permission may be granted to install and operate sewage pumping facilities for boats moored to shore - connected structures providing such installations are first approved by the Fire ra te Marine Depar-tfnet+tHarbor Resources Division. In requesting approval, the following information must be submitted in letterform to the Are and Marine Departawn Harbor Resources Division: 1. The name and address of the person responsible for the installation; 2. The name and address of the manufacturer of all pumping equipment; 3. A complete description of the materials and the pumping equipment to be used; 4. An 8" x 11 ", or larger, sketch clearly showing the location of the sewage discharge lines, the connection to the sewer system, and the area to be served. F��1- 11:7071.9 A. All piers and floats for residential properties shall be set back a minimum of five feet from the projection of the property line. B. All piers and floats for commercial properties may extend to the projection of the property line. C. The projection of the property line bayward of the same bearing from the bulkhead shall generally be used in determining the allowable setbacks for piers and floats. Because there are certain physical conditions which preclude the strict application of this policy without prejudice to adjoining properties, special consideration will be given to areas where precise projections of the property line have not been determined and the following conditions exist: 1. Where property lines are not approximately perpendicular to the bulkhead line. 2. Where curves or angles exist in the bulkhead line. 3. Where bridges, topography, street ends or publicly owned facilities adjoin the property. MOORINGS A. Boats moored at private or public docks shall not extend beyond the projection of the property lines of the property to which the dock facility is connected in accordance with Section 20-C. B. Any boat moored at a pier, dock, or float shall not extend bayward a distance of more than the width of its beam beyond the pier, dock or float. C. Mooring Fees for both onshore and offshore moorings shall be set annually by Resolution of the City Council. BALBOA ISLAND No new, non - commercial piers on Balboa Island shall be recommended unless it is in the public interest or unless it is at such a location that it is not usable for swimming or bathing. Piers presently in use may be repaired but recommendations for any additions or remodeling shall be restricted to such changes that do not lessen the use of either the immediate water or land areas. Whenever any application to install a new, non - commercial pier is to be taken under consideration, all occupants within 300 feet of the proposed work shall be notified in writing by the Fire and Marine Pepaytrae #Harbor Resources Division. *BAYWARD LOCATION OF PIERS AND FLOATS A. U.S. Bulkhead Sta. No. 107 to No. 109. Piers will be permitted to extend out to the U.S. Pierhead Line. Creosote anchor piles will be permitted in this section. B. U.S. Bulkhead Sta. No. 109 to No. 110. Piers may be permitted to extend 16 feet channelward of the U.S. Pierhead Line. *Based on Harbor Regulations adopted by the City Council on December 15,1941. C. U.S. Bulkhead Sta. No. 110 to 112. Piers will be permitted to extend out to the U.S. Pierhead Line. D. U.S. Bulkhead Sta. No. 112 to No. 113. Piers will be permitted to extend out to the U.S. Pierhead Line. Commercial piers between "A" Street and Adams Street will be subject to special permits approved by City Council. E. U.S. Bulkhead Sta. No. 113 to 114. Piers shall be subject to a special permit approved by the Fir„ ^•, a Mari,,^ Pepa,.tmei4 Harbor Resources Division. F. U.S. Bulkhead Sta. No. 114 to No. 119. Piers will be permitted to extend to the U.S. Pierhead Line. G. U.S. Bulkhead Sta. No. 119 to No. 120. Piers may permitted to extend 20 feet beyond the U.S. Pierhead Line. H. U.S. Bulkhead Sta. No. 120 to No. 221. Piers may be permitted to extend 20 feet beyond the U.S. Pierhead Line. I. The Rhine. Special permits approved by the r ^ ^-•a "r^ R^ n ^^ `^ ^^ Harbor Resources Division shall be required for construction of piers in the Rhine, extending northerly from U.S. Bulkhead Sta. No. 120. J. U.S. Bulkhead Sta. No. 122 to No. 125. Piers or boat slips may be permitted to extend 20 feet channelward of the U.S. Pierhead Line. K. West Newlort Channels. Piers may be permitted in the Rivo Alto, the Rialto, and the channel lying westerly of Newport Boulevard. Piers, slips, and floats will be permitted to extend channelward a distance of 30 feet maximum from the channel lines in the Rivo Alto, the Rialto, and the channel lying westerly of Newport Boulevard. Property extending to the ordinary high tide line, with a frontage exceeding thirty (30) feet will be allowed 1 -foot increase in float width parallel to the Pierhead Line, for each additional 2 feet frontage. The piers, slips and floats in Balboa Coves shall not extend into the channel a distance greater than 30 feet from north line of channel shown on Tract 1011. Floats. Up to 20 feet in length may extend into the bay the 30 feet from the said line of waterway; however, for floats over 20 feet in length, the 30 feet distance shall be reduced 1 -foot for each 2 feet added to the length of the float. The maximum permissible length of float shall be 30 feet. (Second paragraph of Sec. 23 (k) added by Resolution No. 6139.) L. U.S. Bulkhead Sta. No. 226 to No. 227. Piers or boat slips will be permitted to extend to the U.S. Pierhead line. M. U.S. Bulkhead Sta. No. 227 to 128. Piers or boat slips will be permitted to extend to the bulkhead line. N. U.S. Bulkhead Sta. No. 128 to No. 130. Piers or boat slips will be permitted to extend to the U.S. Pierhead line. O. U.S. Bulkhead Sta. No. 130 to No. 131. Piers or boat slips may be permitted to extend 20 feet channelward of the U.S. Pierhead Line. P. Upper Bay. Piers or boat slips may be permitted to extend to the pierhead lines as shown on Harbor Lines Map approved by City Council and on file in the Public Works Department. Q. U.S. Bulkhead Sta. No. 132 to No. 137. Pier or boat slips will be permitted to extend to the U.S. Pierhead Line. R. U.S. Bulkhead Sta. No. 137 to east property line of Beacon Bay Subdivision. Piers shall be granted under special permits approved by the Harbor Resources Division to extend 16 feet beyond the U.S. Pierhead Line. S. East Property Line of Beacon Bay Subdivision to U.S. Bulkhead Sta. No. 104. Piers may be permitted to extend 20 feet channelward of the U.S. Pierhead Line. T. U.S. Bulkhead Sta. No. 104 to No. 106. Piers shall be subject to special permits approved by the Fire and r a •in • Departme ^Harbor Resources Division. (03 U. Bav Island. Piers will be permitted to extend to the U.S. Pierhead Line on the west, northerly and easterly sides of the Island. Piers will not be permitted on the north side of the channel south of Bay Island. V. Balboa Island. All new piers shall be subject to special permits approved by the i=ae an Marine DepaftmextHarbor Resources Division. Revisions to existing piers will be permitted providing they do not lessen the use of either the immediate water or land areas. 1. South Bay Front East of U.S. Bulkhead Sta. No. 256. Piers may be permitted to extend 16 feet channelward of the U.S. Pierhead Line. Dredging around floats shall not exceed a depth of 4 feet a mean lower low water along a line 85 feet channelward of and parallel to the bulkhead line. 2. South Bav Front between U.S. Bulkhead Sta. No. 256 and No. 259. Piers may be permitted to extend 10 feet channelward of the U.S. Pierhead Line. Dredging around floats shall not exceed a depth of 2 feet at mean lower low water along a line 60 feet channelward of and parallel to the bulkhead line. 3. South Bay Front from Emerald Avenue Northwesterly to the Westerly Prolongation of the Northerly Line of Lot 5, Block 1, Resubdivision of Section 1, and Balboa Island. Piers will be permitted to extend to City pierhead line. Dredging around floats shall not exceed a depth of 2 feet at mean lower low water along a line 45 feet channelward of and parallel to the existing concrete bulkhead. 4. North Bay Front. Piers may be permitted to extend 10 feet channelward of the U.S. Pierhead Line, except where a pier line has been established by the City. Dredging around floats shall not exceed a depth of 2 feet at mean lower low water along a line 60 feet channelward of the parallel to the U.S. Bulkhead Line or the existing concrete bulkhead. 5. East Bay Front. Piers may be permitted to extend 10 feet channelward of the U.S. Pierhead Line northerly of the northerly line of Park Avenue and 16 feet channelward of the U.S. Pierhead Line southerly of the northerly line of Park Avenue. Dredging around floats shall not exceed a depth of 2 feet at mean lower low water along a line 60 feet channelward of and parallel to the bulkhead line. W. Collins Isle. Piers will be permitted to extend to the U.S. Pierhead Line on the southwest and west side of Collins Isle. No piers will be permitted on the north or east side of Collins Isle. X. Harbor Island. Piers will be permitted to extend to the U.S. Pierhead Line. Special permits approved by the Harbor Resources Division will be required for piers northeasterly of Lots 14,15,16 and 36. Y. Lido Isle. Piers may be permitted to extend out to the U.S. Pierhead Line, except on the westerly side between U.S. Bulkhead Sta. No. 172 and No. 174. Piers may be permitted to extend 20 feet beyond the U.S. Pierhead Line between U.S. Bulkhead Sta. No. 172 and 174. 1. Piers and floats will not be permitted in the beach area along the northerly side of Lido Isle between the easterly line of Lot 849 and the westerly line of Lot 493. 2. Piers and floats will not be permitted in the beach area along the southerly side of Lido Isle between the easterly line of Lot 919 and the westerly line of Lot 457. Z. Linda Isle. Piers or boat slips will be permitted to extend to the pierhead lines as shown on Harbor Lines Map approved by City Council and on file in the Public Works Department. EXCEPTIONS Exceptions may be approved to any of the requirements and regulations set forth if there are special circumstances or conditions affecting the harbor installations that would impose undue hardship on the applicant, or a waterfront property owner's access to the water is impacted by a public works project, or if it would be detrimental to the best interest of the City. SIGNS A. No signs shall be permitted beyond the bulkhead lines with the exception of the following: 1. Informational and directional signs of service to the public such as fuel, gasoline, live bait, ice, beer and similar signs which in general list services and commodities but do not advertise a specific brand. 2. Brand name signs which are customarily a part of a fuel pump or a vending machine installation. B. No sign permitted beyond the bulkhead lines shall exceed 4 square feet in total area. STORAGE LOCKERS Storage lockers and boat boxes may be installed on shore - connected piers and floats subject to the following limitations: A. The overall height shall not exceed 30 inches when located bayward of residential property zones. B. The overall height shall not exceed 30 inches when located bayward of commercial and industrial property zones where the piers and floats are used primarily for the mooring of pleasure boats. C. The overall height shall not exceed 60 inches when located on facilities bayward of commercial and industrial zoned property where the use is not primarily for the mooring of pleasure boats. The overall height shall be measured from the deck of the pier or float to the top of the storage locker. (Sec. 26 adopted as Sec. 2 of Addendum No.1 by Resolution No. 6041.) RACE COMMITTEE PLATFORM Race committee platforms and instruction platforms may be constructed bayward of the bulkhead lines at recognized yacht clubs and recognized sailing schools. All work shall require issuance of a Harbor Permit. ENCROACHING PIERS AND FLOATS In areas where existing piers and floats encroach in front of abutting upland property owned by others, a new permit, shall be required upon: A. Any change in type of existing use of the piers and floats. B. Any change in type of existing use of the abutting upland property owned by the permittee. C. Any change of existing ownership of the abutting upland property owned by the permittee or upon the death of the permittee. D. Any destruction of the pier and float in which over 60% of the replacement value of the pier and float has been destroyed. Before the F' ^^ and Marine D partmen Harbor Resources Division acts on the new permit, the owner of the abutting upland property, in front of which the harbor facility encroaches, shall be notified in writing of the meeting in which the new permit will be considered. PATIO DECKS In areas where the waterways are privately owned, and within Promontory Bay, patio type decks may be cantilevered beyond the established bulkhead lines subject to the following conditions: A. The maximum projection of patio decks encroachments beyond the bulkhead line shall be limited to 5 feet. B. The minimum setbacks from the prolongations of the side property lines shall be 5 feet. C. No float shall be permitted within 2 feet of the decks. D. No permanent structure shall be permitted on the projecting portion of the patios except: 1. Planters and benches not over 16 inches in height. 2. Railings not over 42 inches in height with approximately 95% open area. FLOATING DRY DOCKS A. Permits for floating dry docks may be considered by the Fire ^^ a Marine De-pa �! arbor Resources Division, subject to the following conditions: 1. The location is in waters bayward of commercial, manufacturing or unclassified zones. 2. The prior approval of a Use Permit by the Planning Commission. B. Permits for floating dry docks are issued for one location only. A new permit must be obtained to move a floating dry dock from one location to another location within the harbor. PROMONTORY BAY The following conditions are to be placed on each harbor permit when approved: A. That the permittee shall be responsible and maintain the area delineated on the harbor permit free and clear from floating rubbish, debris or litter at all times. B. That the permittee shall be responsible for all maintenance dredging, in accordance with the design profile for Promontory Bay, for the area between the bulkhead line and pierhead line as delineated by the harbor permit. GRAND CANAL A. The following conditions are to be in effect and placed on each harbor permit for the Grand Canal: 1. That the permittee shall be allowed either one pier platform, or in lieu thereof, two shore mooring type appurtenances per lot. Pier platforms and shore moorings shall be constructed according to "Design Criteria and Standard Drawings for Harbor Construction" adopted by the City of Newport Beach. 2. That all vessels (maximum length 18 feet) moored in the Grand Canal shall be tied off to pier platform structures or shore moorings. Floating platforms or slips will not be allowed. Vessels tied to the bulkhead or by alternate methods not approved by the Fire and Marne Pepartmen Harbor Resources Division shall be prohibited. 3. That the permittee shall be allowed no more than one vessel per shore mooring. 4. That any shore mooring approved for the Grand Canal shall display a permit number issued by the Fire and- Marine Depa tme i`Harbor Resources Division. 5. That each vessel tied to any pier platforms in the Grand Canal be anchored from the stem in such a method as to prevent the vessel from swinging into adjoining vessels or across bayward prolongations of private property lines. B. There shall be no permits issued for shore moorings or pier platforms fronting on alleys, avenues or other public easements terminating on the Canal. C. There shall be no new permits issued for shore moorings or pier platforms bayward of those lots at the extreme south end and north end of Grand Canal. OCEAN FRONT SAND DUNES As a result of wind, storm and tidal conditions, sand has built up in specific locations forming sand dunes. These range from a height of a few inches to as much as five feet. This build up can present problems for adjacent property owners in the form of increased pressure on ornamental and retaining walls and interfering with views of the ocean. To resolve these problems, property owners may apply for a Harbor Permit to do excavation of beach sand directly oceanward of their property in the area bounded by the prolongation of their side property lines. Reaffirmed - January 24,1994 Amended - June 27,1994 Amended - June 26,1995 Amended - March 25,1996 Amended - June 8,1998 (effective July 22,1998) Amended - December 14,1998 Amended - May 8, 2001 68 1 -2 INSTRUCTIONAL RECREATION ACTIVITIES The instructional recreational programs for children and adults provided by the Community Services Department will be conducted on the basis of being at least self - supporting. An amount equal to at least 25% of the costs incurred will be set aside for administrative overhead. Registration fees will be based on an amount sufficient to acquire independent contractors, class materials and the administrative overhead and a facility use fee. Occasionally, it may be necessary to conduct a specific class in which revenues are not sufficient to be self - supporting. However, each total recreation program, such as tennis, sailing, surfing, etc., will be at least self - supporting. A sum of money equivalent to 20% of the gross annual revenues derived from the instructional classes in surfing shall be set aside and used for the purpose of purchasing new or replacement surfboards. A total of 20% of the registration fees from tennis instructional classes shall be set aside annually for refurbishment or development of courts or development of new recreational programs or facilities. The Community Services Director or designee is authorized to enter into agreements for securing independent contractors for approved instructional recreation activities. A total of 20% of the registration fees from the sailing instructional classes and 100% of the proceeds from the agreement for the use of the 29th Street public dock shall be set aside annually for refurbishment and replacement of the recreation sail boat fleet and development of waterfront activities program. Adopted - October 1963 Amended - August 30, 1966 Amended - November 25, 1968 Amended - March 1970 Amended - April 12, 1971 Amended - August 9, 1971 Amended - February 14, 1972 Amended - March 13, 1972 Amended - November 11, 1974 Amended - March 24, 1975 Amended - December 8, 1975 Amended - November 27, 1978 Amended - November 28, 1988 Amended - January 24, 1994 Amended - February 27, 1995 Amended - December 14, 1998 Formerly 1 -6 1 -5 OASIS SENIOR CENTER OPERATION AND RELATIONSHIPS In today's era of limited resources, support groups have formed to render essential assistance, both in time and money, to worthwhile public programs and facilities. In the contest of a philosophy which encourages people to help themselves in their leisure pursuits, the Community Services Department is committed to a cooperative effort to provide senior programs and services at the Oasis Center. The Department welcomes volunteer support and intends by this policy to identify the relationship, roles and control between the City of Newport Beach and Friends of Oasis. FACILITY USE AND SCHEDULING A. The City, through the Community Services Department, is responsible for determining priorities of use and overall scheduling of the Oasis Center. Senior - citizen activities shall have priority of use, in accordance with Council Policy 1 -25 ", Public Use of City Facilities Papik Fee Poky. C. The senior - citizen programs at Oasis Center are cooperative efforts of the Community Services Department and the Friends of Oasis; as Department programs — and in consideration of the significant volunteer contribution by the Friends of Oasis — facility use fees are not appropriate. D. Scheduling of senior activities at the Oasis Center will be done by the Senior �e Services Manager, in cooperation with the Friends of Oasis President. E. The Department maintains a master calendar for the Oasis Center; use by other Department programs and outside groups will be handled by Department staff as specified by Council Policy 1 -25 Imo, Public Use of City Facilities I'y. PROGRAMMING AND ADMINISTRATION A. The Senior Community Services Manager is responsible for day -to -day operation of the Oasis Center. B. Within the context of cooperation, programming decisions will be made jointly by the Senior Communitu Services Manager and the Friends of Oasis President. C. The Senior � Services Manager and Friends of Oasis President shall be ex- officio members of each Friends of Oasis Committee. D. The Senior Community Services Manager will be an ex- officio member of the Friends of Oasis Executive Committee and the Board of Directors. 7� 1 -5 E. iT Any improvement or physical change of the Oasis Center must have advance approval by the Community Services Department. FINANCIAL A. The City is responsible for financing the Oasis Center operation only to the extent of the annual City Council approved budget. B. Equipment, services and financial contributions provided by the Friends of Oasis are welcome and are in keeping with the cooperative philosophy. C. i6 Friends of Oasis shall maintain accurate records of all finances. A copy of all Friends of Oasis financial reports will be forwarded to the Community Services Department. D. & Fundraising or activities that provide private monetary gain must comply with Council Policy 1 -4, Commercial Uses In Public Parks. E. Fl� A total of 10% of the rental fees collected from the public use of facilities at Oasis Center shall be set aside annually for equipment replacement and /or required refurbishments at Oasis Center. INSURANCE Friends of Oasis shall provide evidence of adequate insurance coverage as determined by the City. Adopted - January 21, 1980 Amended - November 28, 1988 Amended - January 24, 1994 Formerly 1 -17 SPECIAL EVENT PERMIT REQUEST PROCESSING PURPOSE i -7 To set forth City policy concerning administration and control of special events. Special events include activities as defined by Municipal Code Chapter 5.10. Requests that include activities for which the Municipal Code requires that a permit be obtained may be included in the special event permit process. POLICY It is the policy of the City Council to ensure that the numerous special event activities permitted by the City do not negatively affect the community, that requests for permits are efficiently processed by staff, that City liability is eliminated, that all appropriate insurance requirements are met, and that costs for municipal services provided are kept at a reasonable level and recovered from the event sponsors. Affected City departments shall be notified of special event permit requests in accordance with the schedule attached and provide recommendations on how to conduct the event safely, lawfully and with a minimum negative impact on the community. It is the responsibility of the Community Services Director to coordinate the administration of special events and to be the central contact point for residents or other event sponsors, as well as the various City Departments having influence or control over aspects of any given event. Requests for special event permit applications will be received by a special event coordinator in Community Services and routinely routed to appropriate departments for investigation. Each department will investigate the proposed event and make a recommendation for approval or denial of the event. If recommended for approval, recommended conditions for approval will also be presented. Events that include the following activities or aspects shall be additionally reviewed by the departments indicated: ACTIVITY Fireworks Tents Et Canopies Requests on the Harbor Requests on the Balboa Pier REVIEWING DEPARTMENT Fire and=MayiAe Department City Manager Fire Department Building Department Harbor Resources Division Sheriffs Harbor Department Public Works 7�- ACTaVITY Requests on McFadden Plaza Requests on the Newport Pier Requests on Public Beaches Requests in a Public Park Requests to Deviate from Use Permit Requests at a Commercial Location Garage Sales Signs Et Banners on Private Property Signs ft Banners on Public Property Amplified Sound at a Commercial Location Amplified Sound at a Residential Location Temporary Street or Sidewalk Closures Sidewalk Sales Use of Public Property Public Food Service Use of Back Bay Drive 1 -7 REVIEWING DEPARTMENT Public Works Public Works Unrino Harbor Resources Division General Services Community Services General Services Planning Department Planning Department Planning Department Planning Department Public Works Planning Department Police Department Public Works General Services Public Works Risk Manager Health Department Department of Fish Et Game General Services Public Works If each department reviewing a special event permit application recommends approval of issuance of the permit, a permit will be issued to the applicant listing the conditions provided by each department. The City Council shall authorize approval of any request for special event permit when: A. Required by Municipal Code. B. One or more reviewing departments recommends denial. C. The applicant desires to deviate from the conditions recommended by reviewing departments. Adopted - January 24, 1994 Amended - February 24, 1997 1 -12 FINANCIAL SUPPORT FOR CULTURE AND ARTS The City Council hereby recognizes the importance of promoting culture and the arts within the City of Newport Beach. A number of individuals and groups, such as the Arts Commission and Friends of the Newport Theatre Arts Center, have been organized with the express purpose of developing and promoting culture, theatre and the arts. The City would compliment these efforts by establishing a Reserve Fund for Culture and Arts that can be used for a) developing a master plan for the promotion of culture and arts; b) acquiring land and /or the construction of facilities to promote culture and arts and; c) instituting other cultural promotion projects. The sum of $55,000 shall be provided each year for specific cultural or artistic planning, promotion and /or construction projects as approved by the City Council. It is the policy of the City of Newport Beach that expenditures from the reserve fund should be matched equally by the community in the form of contributions and donations. =`In regard to the City's roll in financially sponsoring art and cultural events, the City Arts Commission shall review all programs and requests for support from arts groups. The Commission shall forward its recommendations for funding to the City Council for final approval. Any appropriation shall not exceed 50% of the Arts Commissions' annual budget. For the purpose of this policy, arts groups shall be defined as those involved in visual, musical, theatre, dance, crafts, performing and literary activities. The following priorities shall be considered by the Commission. The order of preference for granting support shall be as follows: A. Local arts groups located within the City and offering programs to City residents; B. Regional arts groups located in Orange County and offering programs to City residents; and C. Arts groups located in California and performing or offering programs to City residents. • aktachedGWItitgni ..t.....-.. A..... .,...t F...... Groups not offering programs or services to local residents shall not be eligible for support from the City. Adopted - May 11, 1981 Amended - November 14, 1983 Amended - January 23, 1984 Amended - March 28, 1988 Amended - October 28, 1991 Amended - January 24, 1994 Formerly F -20 I- ATTACHMENT CITY OF NEWPORT BEACH CULTURAL ART PROGRAM ASSISTANCE REQUEST Name of R uesting Group: Program: Date(s) of F Location of Objectives of Program: Cost of Program: Assistance Amount Requested: ------------- - - - - -- -For fficial e Only -- - - - - -- ---------------- - - - - -- Arts Commission Review: Arts Commission Recomn Transmitted t Council: Date: Action Tak Date: — January 23, 1984 ed —January 24, 1994 PUBLIC LIBRARY COMMUNITY ROOM USE PURPOSE OLD POKILY I -21 The Public Library Community Room known as the "Friends Room," is available to Library customers to provide facilities for civic, social, educational and cultural activities that support the Library's goals and objectives. In order to accommodate all groups who are interested in using the Community Room, it is the intent of this Policy to provide application and scheduling procedures, and regulations for use of the room. PROCEDURE A. Application. Any person or group of persons desiring to use the Library Community Room must apply on forms provided by the Community Services Department and provide all additional information as may be required by the Department to assure compliance with the regulations and specifications of this Policy.. Applicants will be required to satisfy the Community Services Department that meetings or activities will be conducted in an orderly manner without damage to the facilities and that such persons or groups are financially able to respond to damages in the event of any personal injuries or property damage arising from the use of the Community Room. All persons and groups will be required to acknowledge that neither the City nor the Community Services Department assumes any liability for injury or loss of personal property. Prior to the use of the facility, the application must have approval of the Community Services Director /City Librarian or designated representative. B. Reservations. Reservations for use of the room may be made up to six months in advance. Any organization using the Community Room on a yearly basis shall notify the Community Services Department when there is a change of officers or of organizational policy. REGULATIONS AND RESTRICTIONS All uses of the Community Room will be subject to the following regulations and restrictions: A. The use of alcoholic beverages is prohibited, except under special circumstances. B. Smoking is prohibited in the entire Library facility, including restrooms. 1 I -21 C. For all meetings of yott6.g people, 18 years and under, there shall be at least one responsible adult for every 20 minors, or increments thereof, in attendance, who shall remain in the room for the duration of the activity. D. No groups' activities shall interfere with the normal use and activities of the Library. E. Except for library fundraising related activities, all fees, donations or admissions charged by the group using the Community Room must be limited to essential expenses of the group. The group treasurer will be required to submit a financial report following each activity when any of the above is collected. F. Activities conducted in the Community Room shall not be commercial in nature. Meetings or activities shall be open to the public. Unless sponsored by the Newport Beach Public Library, meetings and activities may not be advertised or promoted as library sponsored activities. G. Capacity of the Community Room shall not be exceeded. H. The Community Room shall not be used for private social functions such as weddings, music rehearsals, etc., unless rehearsals have been sanctioned for groups which need to rehearse prior to a public concert or the production which is scheduled to be performed in the Community Room. I. No storage space will be granted to any community organization using the Community Room. PRIORITIES OF USE Permission for use of the Community Room shall be granted on a first come first serve basis. Subject to the following priorities: A. All official Newport Beach Public Library initiated and /or conducted activities, including those of the Friends of the Library and the Newport Beach Public Library Foundation; B. All official City of Newport Beach activities; 2 — 05 I -21 C. All official Library cosponsored groups and /or activity such as community groups and activities which are non - profit, self governing, privately organized and of an educational nature which may be brought under the sponsorship of the Community Services Department; D. Official public agency sponsored programs and activities not included in A, B, and C above; E. Recreational, social or civic activities in groups which are resident promoted and sponsored by local non - profit* organizations which are open to the public and have 50% or more of memberships consisting of Newport Beach residents; F. Recreational, social or civic activities and /or groups which are non - resident promoted and sponsored by non - profit organizations which are open to the public, but not qualifying under number D above; G. Schools, colleges, hospitals and other similar civic groups not qualifying under the definition of non - profit; H. Others. * Non - profit status is defined as an organization which is so defined by the Internal Revenue Service, § 501(c) (3) and has a State of California Tax Identification Number. AVAILABLE HOURS Available hours for the Community Room are: Monday - Thursday 9 a.m. to 8:30 p.m. Friday - Saturday 9 a.m. to 5:30 p.m. Sunday Noon to 4:30 p.m. FEES, DEPOSITS AND CANCELLATION PROCEDURES Fees may be charged for the use of the Community Room and shall be established and periodically adjusted by the Board of Library Trustees and approved by the City Council. Fees are imposed to cover overhead, processing, deposits, maintenance and replacement costs for application and scheduling and maintenance of the Community Room. 3 I -21 A $100.00 cleaning deposit will be required for all organizations using the Community Room. All or a portion of the deposit may be retained by the Community Services Department after inspection of the room by the Community Services Director /City Librarian or a designated representative and a determination that the room has not been left clean and in good repair. An additional $50.00 deposit will be required for use of the Community Room public address system. No fee or deposit shall be charged for use of the Community Room by the Friends of the Library, the Newport Beach Public Library Foundation, the City of Newport Beach, or professional library organizations when co- sponsored by the Newport Beach Public Library. Notice of cancellation of a meeting or activity is required three working days prior to the scheduled use of the facilities. Any notice of cancellation less than three working days will result in forfeiture of a $25.00 cancellation fee. In the event of cancellation by the Library, notice shall be given as far as possible in advance of the scheduled use of the Community Room. Adopted -July 14, 1980 Amended - November 28,1988 Amended - October 28,1988 Amended - February 27, 1995 Amended - February 24,1997 Formerly 0-1 C 4 - CENTRAL LIBRARY FRIENDS MEETING ROOM BACKGROUND 9U &,l C, 1 -21 The large meeting room in the Newport Beach Central Library is known as the Friends Meeting Room (Friends Room). The Board of Library Trustees and the Community Services Department (Department) administer the Library and the Friends Room. The Friends Room is the primary source of meeting space for library programs and activities. The City has a shortage of large meeting space and City officers and employees frequently need to use the Friends Room for City business on very short notice. Moreover, public use of the Friends Room takes library staff away from their normal duties and can, if uncontrolled, interfere with the public's use and enjoyment of the library. The City needs to limit the amount and timing of the use of the Friends Room by other than Library and City officials and employees to protect the public interest. APPLICATION This Policy shall not apply to use of the Friends Room for Library or Library sponsored activities and programs and City or City sponsored activities and programs. The Library staff, the Board of Library Trustees, the City and its officers and employees and the Friends of the Library and Library Foundation when used for programs and activities directly related to Library functions and purposes; shall be entitled to use the Friends Room at any time subject only to confirming availability with the Department Director. PURPOSE The purpose of this Policy is to establish: (a) Procedures for processing and approving or disapproving requests from private persons, groups or organizations for permission to use the Friends Room; (b) Priorities for the use of the Friends Room to ensure its availability to the City and its officers and employees and to resolve any conflict related to requests for use by others; and (c) Standards and criteria for the use of the Friends Room to ensure there is no conflict with the public's use of the Central Library and no significant impact on the workload of Department staff. PROCEDURE Any person, group or entity seeking permission to use the Friends Room (applicant) shall submit an application on the form provided by the Department. The applicant shall provide all information requested in the application and such additional information as may reasonably be required by the Department Director to enable him /her to determine 1 go complete unless accompanied by required fees and proof of insurance. No person, group or entity shall be entitled to use of the Friends Room unless their application has been approved by the Department Director or his /her designee. No application shall be approved within one year after the applicant's failure to comply with the standard conditions of use or any special conditions imposed by the Department Director. No application shall be approved until the applicant establishes that any fees, donations or admissions charged for use of the Friends Room will be for non - profit fundraising purposes or limited to defraying the actual costs and expenses of the activity or program for which the application is submitted. STANDARD CONDITIONS TO USE Applications for use of the Friends Room are approved subject to permittee's compliance with the following standard conditions to use.: 1. The use of alcoholic beverages is prohibited unless expressly approved in writing by the Director and subject to the approval of the Alcoholic Beverage Control Board; 2. Smoking is prohibited in the Friends Room, and the entire Library facility, including restrooms. 3. At least one (1) adult shall be present in the Friends Room for every twenty (20) minors in attendance. Each adult necessary to maintain the required adult/minor ration shall remain in the Friends Room for the duration of the permitted use. 4. No person shall interfere with the normal use and activities of the Library by way of noise, disturbance or other activity. 5. Groups of one hundred (100) or more persons shall be required to provide proof of off -site parking availability (off -site parking plan) prior to approval of the application and shall strictly comply with the parking plan.. 6. Meetings or activities conducted at the Friends Room may not be advertised or promoted as City or Library sponsored activities. All materials used for advertising or announcing a meeting or activity to be conducted at the Friends Room shall be submitted to the Department Director at least ten (10) days prior to the use for the sole purpose of determining if the material complies with this condition. The Department Director shall notify the permittee of his /her determination that the material complies or does not comply with the condition within two business days after submittal. 7. Meetings or activities in the Friends Room shall not exceed 150 persons. 8. The Friends Room shall not be used for private social functions such as weddings, music rehearsals, etc. unless rehearsals are necessary as part of a Library or City sponsored public concert, or production which is scheduled to be performed in the Friends Room. 2 9. Use of the Friends Room is limited to 9:15 a.m. to 8:30 p.m. Monday through Thursday and 9:15 a.m. to 5:30 p.m. Friday through Saturday. 10. The provision of insurance, naming the City and its officers and employees as additional insureds, providing coverage in the amount of not less than $1,000,000 for any claim, loss, injury, damage or other casualty that is in any way related to the use and /or occupancy of the Friends Room by the permittee authorized to use the Friends Room pursuant to this Policy. 11. The agreement of the permittee to defend, indemnify and hold harmless the City and its officers and employees with respect to any claim, loss, or injury that arises out of, or is in any way related to permittee's use and occupancy of the Friends Room. 12. Applications for reservations may be made no more than 90 days in advance and no more than once every 90 days. PRIORITIES OF USE 1. FIRST PRIORITY: (A) Any official Newport Beach Public Library co- sponsored and /or conducted programs and activities that are directly related to library functions and purposes. (B) Any meeting or activity conducted by any organization of which the City is a member and whose purpose is consistent with the educational and informational function of the Library. 2. SECOND PRIORITY: Use of the Friends Room may be granted by the Department Director to those persons, organizations or entities listed below on a first come first serve basis: (A) Sponsored educational or informational programs and activities of other state or local public agencies such as local public schools or special districts. (B) Recreational, social or civic organizations and /or groups that are promoted and sponsored by City residents or City non - profit organizations that are open to the public and have fifty percent (50 %) or more of memberships consisting of Newport Beach residents. (C) Recreational, social or civic organizations and /or groups that are non- resident promoted and sponsored by non - profit organizations that are open to the public, but do not qualify under (B). 3 (D) School, colleges, hospitals or other similar civic groups not qualifying under the definition of non - profit. Non - profit status is defined as an organization that is so defined by the Internal Revenue Service Section 501C3 and has a state of California Tax Identification Number. FEES, DEPOSITS AND CANCELLATION PROCEDURES Fees may be charged for the use of the Friends Room. Fees shall be established by Resolution of and periodically adjusted the City Council on the recommendation of the Board of Library Trustees. Fees shall be limited to an amount necessary to defray the costs associated with the administration of this policy and the maintenance and repair associated with the public's use of the Friends Room. fAusem\cat\sh a red \po licyg e n eral\lib rary\meeti ngro om use.doc 0 PUBLIC USE OF CITY FACILITIES PURPOSE 1 -25 City facilities, which include parks, playing fields, gymnasiums, community rooms and swimming pools, are available to the public for civic, social, educational, athletic and cultural activities. It. is the intent of this Policy to provide use regulations and application and scheduling procedures to accommodate all groups that wish to use City facilities. PROCEDURE A. Applications to use the City facilities must be made on forms provided by the Community Services Department. Applicants must provide all information as may be required by the Department to assure compliance with the requirements and regulations of this Policy. B. Applicants will be required to pay a security deposit in an amount that will promote use of the Community Services facilities rAmxieec in an orderly manner without damage to the facilities. Security deposits will be refunded upon inspection of facilities and confirmation that no property damage has occurred. C. Applicants will be required to acknowledge that neither the City nor the Community Services Department assumes any liability for injury or loss of personal property. Prior to the use of the facility, the application must have approval of the Community Services Director /City Librarian or designated representative. D. Approval or denial of an application will be provided within five working days of receipt of a completed application. E. Reservations for use of Community Services facilities may be made up to six months in advance, but no later than five working days before the event. Any organization using City facilities on an ongoing basis shall notify the Community Services Department when there is a change of officers or of organizational policy. F. The City of Newport Beach is not liable for any and all accidental injury to any and all persons or loss or of damage to group or individual property. When it is deemed to be in the best interest of the general public, the City of Newport Beach will require the permittee to furnish a Certificate of Insurance naming the City of Newport Beach as an additional insured. The amount of the insurance shall not be less than $1,000,000 per occurrence of commercial general liability insurance. 1 -25 G. A contract shall not be transferred, assigned or sublet. All contracts will be issued for specific facilities and for specific hours, and the premises must be vacated as scheduled. H. The application must be completed and signed by one of the adults who will attend and supervise the entire event or activities. REGULATIONS AND RESTRICTIONS All uses of Community Services facilities will be subject to the following regulations and restrictions: A. Alcoholic beverages are prohibited and shall not be permitted in or on any municipal facilities operated by the Community Services Department, except beer and wine may be served for special occasions at the OASIS Senior Center multi - purpose room when done in compliance with State Alcohol Beverage Control regulations and approved in writing by the Community Services Director. Approval to serve beer and wine at the OASIS Senior Center shall not be deemed to approve service of alcohol in violation of Section 25604 of the Business and Professions Code. The Community Services Director will require the permittee to pay City costs to provide additional security. B. Smoking is prohibited in all City facilities including restrooms. C. For all indoor facility rentals involving young peopleT 18 years and under, there shall be at least one adult for every 20 minors, or increments thereof, in attendance, who shall remain in the facility for the duration of the activity. D. No group's activities shall interfere with the administration of the Community Services Department. E. Non - profit 501(c)(3) groups may use the facility for fundraising activities and charge entrance fees and collect donations provided that a detailed plan of the event, including the expenses, marketing plan and procedure for collecting fees, is submitted with the rental application. The group treasurer will be required to submit a financial report following any such activity. F. Facilities and equipment are to be left in the same condition as they were prior to the rental. The permittee is responsible to pay for any damage to property or loss of property. A fee equal to total replacement cost will be charged. It shall be the responsibility of the permittee to see that unauthorized portions of the facility are not used. Continued or repeated use of City facilities will be contingent upon care of the facility, property and equipment, and observance of all approved rules and regulations. 1 -25 G. No gambling of any kind shall be conducted on, or in, City facilities, and the permittee shall insure that no disorderly or illegal conduct shall be allowed in any facility. H. The use of public address equipment will be limited to that provided by the facility, unless written approval has been secured by the Community Services Department through a Special Event Permit. Private groups wishing to collect fees, donations or admission charges will be considered commercial users. J. The capacity of City facilities shall not be exceeded. K. Storage space will not be granted to any ongoing activity or uses. L. All persons using the facilities shall observe and obey regulations of this policy, the rules of the Community Services Department and all applicable City, State and Federal laws, rules and regulations. FEE CLASSIFICATIONS - PRIORITIES OF USE Permission for use of City facilities shall be granted on a first come first served basis, subject to the following priorities: A. All official Community Services Department initiated and /or conducted activities, including those of the Friends of OASIS at the OASIS Senior Center. B. All official City of Newport Beach activities. C. All official City co- sponsored groups and /or activities such as community groups and activities which are non - profit, self governing, privately organized and of an educational nature which may be brought under the sponsorship of the Community Services Department. D. Official public agency sponsored programs and activities not included in A, B, and C above. E. Recreational, social or civic activities of groups which are resident promoted and sponsored by local non - profit` organizations which are open to the public and have 50% or more of memberships consisting of Newport Beach residents. Non - profit status is defined as an organization that is so defined by the Internal Revenue Service, 5 501(c) (3) and has a State of California Tax Identification Number. 1 -25 F. Recreational or social activities of private Newport Beach residents which are not open to the public. G. Recreational, social or civic activities and /or groups which are non - resident promoted and sponsored by non - profit organizations which are open to the public, but not qualifying under D above. H. Schools, colleges, hospitals and other similar civic groups not qualifying under the definition of non - profit. I. Others. FEES, DEPOSITS AND CANCELLATION PROCEDURES Fees may be charged for the use of City facilities and shall be established and periodically adjusted by the Parks, Beaches and Recreation Commission and approved by the City Council. Fees are imposed to cover overhead, processing, deposits, maintenance and replacement costs for application and scheduling and maintenance of the facilities. A. A security deposit will be required for all room rentals. All or a portion of the deposit may be retained by the Community Services Department after inspection of the facility by the Community Services Director or a designated representative and a determination that the facility has not been left clean and /or in good repair. B. A separate additional cleaning fee will be charged for rental of the OASIS Senior Center multi - purpose room. C. No fee or deposit shall be charged for use of City facilities by the City of Newport Beach, the Friends of OASIS when utilizing the OASIS Senior Center, or events co- sponsored by the City of Newport Beach or its departments, with the exception of set -up charges and fees for lighting usage. D. Cancellations for any facility other than the OASIS Senior Center multi - purpose room may occur seventy -two hours prior to the scheduled use of facilities without forfeiting fees collected by the City, with exception of a City service refund processing fee. Cancellations with less than seventy -two hours notice will be charged a 00 cancellation fee established by resolution of the City Council. In the event of cancellation by the City, notice will be given as far in advance of the scheduled use as possible. E. Cancellation of rentals by users for the OASIS Senior Center multi - purpose room that occur less than thirty days prior to the scheduled use of the facility will be charged 25% of the rental fee. Cancellations with less than seventy -two hours notice will be charged the entire rental fee. Adopted - May 26, 1998 �(� K -1 GENERAL PLAN MANNER OF ADOPTION AND AMENDMENT The General Plan or any part or element thereof, and any amendment to such plan or any part or element. thereof, shall be adopted in the following manner: A. Public Hearing - Planning Commission. The Planning Commission shall hold at least one public hearing before approving a General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, and shall give notice of hearing by at least one publication in a newspaper of general circulation within the City, and mailed notice to any community association which may be impacted by a proposed amendment, as determined by the Planning Director, or to any individual or community association which has expressed an interest in a proposed amendment and requested mailed notice, at least ten days prior to the first of such hearings. If the proposed General Plan Amendment would affect the permitted uses or intensity of uses of real property, notice of the hearing shall be mailed or delivered at least 10 days prior to the hearing to the property owner or his duly authorized agent; to all owners of property and occupants within 300 feet of the boundaries of the property; and to the project applicant. However, if the number of persons to whom notice would be mailed or delivered is greater than 1,000, the requirement for individual mailed or delivered notice may be waived by the Planning Director. B. Approval by Planning Commission - Resolution. The approval by the Planning Commission of the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, shall be by the adoption of a resolution, endorsed by the chairman and Secretary of the Commission and transmitted to the City Council. C. Public Hearing - City Council. Before adopting the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, the City Council shall hold at least one public hearing. Notice of the time and place of the hearing shall be given at the time and in the manner provided for the giving of notice of the hearing by the Planning Commission. 1 K -1 D. Referral of Proposed Changes Back to Planning Commission. In adopting a General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, which has been approved by the Planning Commission, the City Council shall consider the recommendation of the Planning Commission. If the City Council intends to make major changes and take an action not considered by the Planning Commission, the changes shall be referred back to the Planning Commission for its recommendation. Planning Commission consideration of an alternative shall be construed liberally so as to allow the City Council to act on any one of a range of alternatives generally considered by the Planning Commission. The Planning Commission shall report back to the City Council with their recommendation on the Prmposed changes within 45 days. n ,.i„n not he „ fer the Planning r ......:....:.... to held Faillive Rf the Mann: Ing Commission to Feport baEl, to the City Council within, fot-':y (40) days, of referral shall EE)nlititute Planning Commission approval of the pfoposed eh E. Adoption by City Council - Resolution. The adoption of the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, shall be by resolution. AMENDMENT PROCEDURES (GENERAL PLAN) A. Amendment to the General Plan shall be initiated by the City Council after recommendation from the Planning Commission .curing the months of February, B. In initiating action to amend the General Plan, the City Council shall direct the Planning Commission to set public hearings for such amendments, as it deems appropriate. C. Prior to making its recommendation on the initiation of proposed General Plan amendments, the Planning Commission may do such research, as it deems necessary to establish whether the proposed amendment warrants consideration. D. D. A citizen and /or property owner may request an amendment to the General Plan. Such request shall be submitted in writing to the Planning Commission proposed ai+tendments ape to be initiated. The request should clearly set forth 2 K -1 for which the request is made, and should contain information substantiating the need. When an amendment is requested for a specific parcel or parcels in the City, the request must be made by the property owner or his or her authorized representative or by the Planning Commission or City Council. A project specific amendment request shall include a quantification of the requested densitX and /or intensity, land use, and a conceptual site plan. The Planning Commission and City Council may also propose amendments to the General Plan. If the Planning Commission, after examination, is convinced that the proposed change is worthy of initiation, it may recommend initiation of amendments as set forth above. If not, the Commission shall forward the request to the City set forth above. If not, the Commission shall forward the request to the City Council with its recommendation that initiation of the amendment is unwarranted. The City Council, after consideration of the request and of the report from the Planning Commission, may either initiate the proposed amendment and direct the Planning Commission to set for public hearing, return the request to the originator without further action, or defer action on the proposed amendment to future hearing sessions based on Planning Department work loads and project priorities. E. —E —.Amendments to each General Plan element may be initiated at any time A'vee tinws a calendar N,eai-. Residential prejeets, at least 25%44 whiEh will be affordable to iawilif— oi low or- inedefate ineome (as defined-by the City of this provision. Also, amendr-nents to bring the General Plan into conformance with the LE)eal Coastal Program may be exempt 4efn this A number shall be assigned in sequence to each amendment or group of amendments at the time it is initiated by the City Council. F. If a citizen and /or property owner amendment request is initiated, all applications related to the request must be filed within 180 days of the initiation. If applications are not filed within this time - frame, the initiation shall expire. Adopted - April 22,1974 Amended - June 23,1980 Amended - November 23,1981 Amended - November 22,1982 3 Amended - November 27,1989 Amended - January 24,1994 Amended - February 26,1996 Formerly Q -1 K -1 V ECONOMIC DEVELOPMENT POLICY PURPOSE K -10 The City Council recognizes that the City's ability to deliver quality municipal services is dependent on adequate tax revenues derived primarily from the properties and businesses located within the City. Healthy, thriving businesses not only increase property, sales and bed taxes; they also provide employment opportunities that support local businesses and the strong residential property values that Newport Beach enjoys. The City Council seeks to promote economic activity within the City to maintain a healthy economy, provide revenue for high quality municipal services and infrastructure maintenance and improvements, and preserve the unique commercial villages in Newport Beach. All of these objectives serve the overriding purpose of protecting the quality of life of Newport Beach residents, and the City Council recognizes the need to balance economic development objectives with protection of the environment and the health and safety of the community. POLICY The City Council Ad Hoc Economic Development Committee shall conduct the following activities. The City Manager shall appoint an economic development coordinator, who shall provide staff support to the Committee as appropriate. A. Data and Analvsis 1. Develop and include in the General Plan a strategic plan for economic development in the City, based on a study of the City's economy and an identification of high revenue producing, compatible businesses. (A Priority) 2. Monitor the generation of municipal revenues by business categories and geographic areas of the City. (A Priority) 3. Track commercial vacancies to help with retention and attraction programs, especially attracting quality businesses to areas the City is revitalizing. (B Priority) 4. Maintain a community profile with information on labor pool, existing businesses, land and housing costs, community assets, etc. for distribution to business prospects. (B Priority) 5. Identify short and long range infrastructure replacement and upgrade needs and costs and projected funds to accomplish them. Develop strategies to fill funding gaps. (B Priority) 6. Review and make recommendations on the City operating and capital improvements budgets. (C Priority) B. Re ug latory. Land Use and Develonment Review Actions 1. Develop a plan for future development in the Airport Area. (A Priority) 2. Improve sign regulations Citywide. (A Priority) 3. Monitor and streamline the process, time and expense required for action on land use entitlements and various permits and licenses. (A Priority) 4. Develop a standard economic and fiscal impact analysis system, and use it to provide the Planning Commission and City Council with reports on all land use and development proposals requiring an environmental impact report, or that are likely to have a significant fiscal or economic impact on the City. (A Priority) 5. Advocate for projects and programs that will benefit the City by disseminating information on their fiscal and economic impacts to the public and City Council. (A Priority) 6. When development proposals involve businesses that have been identified as high revenue generators, determine early in the review process what measures may be employed to "fast track" the review process while providing for public input and review of all issues. (A Priority) 7. Consider the costs of compliance when considering new regulations and conditions of approval related to land development, construction and access to City utilities. (B Priority) C. Business Retention and Recruitment 1. Focus on improvement of commercial areas. (A Priority) • Manner's Mile • Corona del Mar • Balboa Village • West PCH • Lido Village • Cannery Village • McFadden Square 2 a J 2. Establish cooperative relationships with the Chambers of Commerce, Conference and Visitors Bureau, Building Industry Association, Business Improvement Districts, other business groups, and individual business and property owners. (A Priority) 3. Mobilize resources to retain contributing businesses in Newport Beach when they are challenged with expansion and other needs. (A Priority) 4. Support special events like the Film Festival, Christmas Boat Parade, Toshiba Gold Tournament, and Taste of Newport. (B Priority) 5. Consider providing financial incentives such as sales tax sharing, relief from or assistance with City fees and regulations to increase the feasibility of projects with high revenue potential. (B Priority) 6. Consider actions to assist priority economic development projects obtain approvals from other regulatory agencies. (C Priority) Adopted — March 22, 1993 Amended — January 24, 1994 Proposed for Revision — April 10, 2001 Formerly F -28, F -17 3 ^q DRIVEWAY APPROACHES GENERAL L -2 A. A permit will be required prior to any driveway construction within the street right -of -way. All construction shall conform with the Standard Plans and Specifications of the City of Newport Beach. Brick, textured concrete or flat stone surfacing may be used subject to Public Works Department approval. Such brick, textured concrete or flat stone surfacing may not be used on Bayside Drive. B. The number of driveway openings shall be kept to a minimum so as to preserve on- street parking and to reduce the points of traffic conflict. C. The term "Curb Opening" shall mean the total width of the approach including the slope distances on the curb. The term "Approach Bottom" shall mean the total width of the approach less the slope distances on the curbs. D. Curb openings shall not be constructed closer than 5 feet to the beginning of the curvature of a curb return, fire hydrant, traffic signal /pedestrian street light, utility pole /anchor /pedestal, trees or vent pipe, unless approved by the Public Works Department. E. The entire curb opening shall be within the prolongation of the property lines except when cross easements provide for a common driveway along the mutual property line. F. No permit shall be issued for driveways on Clubhouse Drive, Glen Drive, Balboa Island or on the ocean side of Ocean Boulevard without City Council approval. No curb openings will be permitted on Ocean Boulevard when access is available from an existing alley, street or improved private roadway. G. No permit shall be issued if the driveway construction requires the removal of a street tree until such removal has been approved by the General Services Director. H. No permit shall be issued if the driveway encroaches on a crosswalk area. I. No permit shall be issued if the driveway construction requires the relocation of any public facility such as fire hydrants utility pole /anchor /pedestal, tree, vault, vent pipes, or street lights until until approved by the Public Works Department 1 L -2 and a deposit has been made to cover the cost of relocation. Property owner shall lay all costs for the relocation of any public facilities. J. No permit shall be issued unless the applicant agrees that at no cost to the City he will remove any driveway opening that is or will be abandoned, and reconstruct curb, gutter and sidewalk (if applicable) to City Standards. K. Where practical, difficulties or hardships may result from the strict application of this policy, minor dimensional variances may be granted with written approval of the Public Works Director. L. Nothing herein shall be construed as preventing any person from appealing to the City Council for relief from the applications of this policy. M. No building permit shall be issued on a parcel whose access requires City Council review for an encroachment permit on public property, until said encroachment permit has been issued. RESIDENTIAL ZONES AND RESIDENTIAL USES - SPECIAL REQUIREMENTS A. The width of the driveway approach bottom shall not exceed 20 feet except when the driveway is to serve an enclosed three or four car garage, in which case the driveway approach bottom may be increased to 25 feet or 32 feet, respectively. B. One additional curb opening will be permitted to a single parcel subject to the following conditions: 1. The total width for all openings shall not exceed 50% of the total frontage of the parcel. 2. The openings shall be separated by at least 20 feet to retain maximum street parking. C. Street curb openings shall not be permitted to residential property which abuts an alley. An exception may be made in the case of corner lots where the street on which the curb cut is proposed is not an arterial street and street frontage is available for the full depth of the lot, subject to the following conditions: 2 L -2 1. Access from the street will be permitted where existing structures prevent full alley access, or additional covered off - street parking is being provided. 2. The width of the curb opening shall be limited to one -half of the lot depth. D. Driveway grades must not exceed the listed applicable maximum slope depending on application. Driveways to lowered or subterranean parking must rise above the flood level or a minimum of six inches above the flow line of the street or alley, whichever is greater, before transitioning to a downward slope. Slope transitions shall be a minimum of five feet in length and the change of slope cannot exceed eleven percent. Driveways providing only parking access - Fifteen- percent maximum slope. Must have access directly from garage into residence. Driveway providing vehicle and pedestrian access - Eight- percent maximum slope. Driveways providing required parking spaces on the driveway itself - Five - percent maximum slope. Minor variations from the listed maximum slopes and slope changes may be granted by the Traffic Engineer when unusual site conditions are encountered. PRIVATE STREETS - SPECIAL REQUIREMENTS A. A grading permit will be required prior to the construction of any driveway apron, sidewalk, curb, gutter or wall within the private street rights -of -way. The design parameters shall be in accordance with the City of Newport Beach Design Criteria and Standards for Public Works Construction. Also, the Public Works Department shall perform a brief review of plans prior to permit issuance. B. A Public Works encroachment permit will be required if improvements are to be constructed within 5 feet of a fire hydrant, street light or other public utility system appurtenance (i.e., valve boxes or manholes). W L -2 C. A Public Works encroachment permit will be required when connecting to or relocating public utilities. COMMERCIAL USES A. The width of the driveway approach bottom shall not exceed 35 feet. B. The total width of all driveways shall not exceed 50% of the frontage of the parcel. C. Commercial driveway approaches may use a curb return design with a maximum curb radius of 25 feet and a driveway approach bottom of greater than 35 feet if the following conditions are satisfied: 1. The driveway serves as an entrance to a parking area or structure for 200 or more vehicles. 2. The number of driveways serving the parcel are at a minimum. D. The curb return commercial driveway approach may incorporate a divided exit and entrance if the separation structure (median island) is continued on -site in such a manner as to provide proper traffic design. CLOSURE OF ABANDONED DRIVEWAY APPROACHES BY CITY The City may close abandoned driveway approaches at high priority locations where two or more of the following criteria may exist: A. The abandoned driveway approach is adjacent to a parcel of property where redevelopment and possible subsequent closure of the approach is not believed imminent; B. The driveway approach is at a location where there is a shortage of available on- street parking; C. The removal of the driveway approach is needed for safe pedestrian and /or bicycle passage; D. The closure of the abandoned driveway approach benefits not so much to the property owner as pedestrian and vehicular traffic in the area. 10 L -2 When in the opinion of the General Services Department and /or the Public Works Department, a curb cut or abandoned driveway approach should be closed, and the adjoining property owner protests the closing, the protester shall be notified that he will have two weeks to appeal the staff decision to the City Council. That appeal must be in writing and may be filed through the mail. If an appeal is not made, the City shall proceed with the closure. If an appeal is made, a hearing shall be held by the City Council, and the decision of the Council shall be final. Nothing in this section shall be construed as relieving adjoining property owners from the responsibility for closure of abandoned curb cuts as a condition of permit approval for new construction or for obtaining a curb cut permit for an alternative driveway location on the same parcel. Adopted - January 24, 1966 Amended - February 26,1968 Amended - July 24,1972 Amended - November 14,1977 Amended - October 25,1982 Amended - July 13,1987 Amended - November 27,1989 Amended - December 14,1992 Reaffirmed - January 24, 1994 Amended - February 26, 1996 5 L -6 PRIVATE ENCROACHMENTS IN PUBLIC RIGHTS -OF -WAY It is the general policy of the City that the public rights -of -way are to be reserved for public use or open space; and that the rights of the public, present and future, are not to be diminished by the installation of private improvements within the public rights -of- way. Categories of private encroachments and improvements are listed below, together with the permit requirement for each category. A. Private encroachments prohibited. 1. Structural encroachments not otherwise listed; including, but not limited to, fences, walls, patios, raised planters, etc., which encroach in excess of 1 foot into the public right -of -way, or exceed 3 feet in height, measured from the top of curb elevation /or from sidewalk elevation where sidewalk exists. 2. Driveway approaches not conforming to Council Policy L -2. 3. Ocean front street end, or Bay front street end improvements not conforming to Council Policy L -8. 4. Ocean front alley end improvements not conforming to Council Policy L -8. 5. Modifications to original design concepts approved by the City. 6. Private signs except as provided for in the Building Code. 7. Lighting. 8. Parkway surfacing of loose rock, gravel, or any surfacing other than standard or colored/ textured concrete or flat stone /brick installed at grade and grouted. 9. Private dwellings and appendages including raised patios and decks, except as provided for in this section and the Building Code. 10. Pay telephones and grrivate mail carrier drop boxes. H (OG L -6 B. Private encroachments requiring an encroachment permit and if applicable an encroachment agreement from the Public Works Department and General Services Department approval. 1. Tree planting and removal. 2. Shrub planting and removal. 3 Median landscaping. If, in the opinion of the General Services Department, the approved planting is not being maintained for view and safety clearance, Chapter 10.50, "Public Nuisance Abatement," of the Municipal Code shall be used to remove offending plant material. The permit applicant shall reimburse the City of Newport Beach for the value of any City tree removed by this process. This value will be determined by the City Arborist using the International Society of Arboriculture's "Guide for Plant Appraisal." C. Private encroachments requiring an encroachment permit and if applicable an encroachment agreement from the Public Works Department. 1. Drive approaches conforming to Council Policy L -2. 2. Standard sidewalks. 3. Carriage walks. 4. Parkway surfacing (standard or colored/ textured concrete or flat stone /brick) installed at grade (subject to General Services Department review for tree well location). 5. CATV and public utility facilities. 6. Structural encroachments not otherwise listed; including, but not limited to, fences, walls, patios, raised planters, etc., which encroach 1 foot or less into the public right -of -way. If, however, in the opinion of the Public Works Department, the nature or location of this type of encroachment is such that Council review is warranted, the Department may forward the item to the Council for action. 2 10 ( L -6 7. Mailboxes, when required by the U.S. Postal Service. The front of mailbox shall be aligned in the same vertical plane as the back of the curb. Mailbox base construction length shall not exceed the length of the mailbox, or 24 inches, whichever is less. 8. The placement of utility pedestals shall be at the back of sidewalks on arterials and major pedestrian thoroughfares without zero setbacks. In the commercial areas there shall be at least 4 feet of clear sidewalk width and /or pedestals shall be placed in the parkway outside of walk area. 9. When connecting to or relocating public utilities. D. Private encroachments requiring an Encroachment Permit from the Public Works Department and subject to the execution of an agreement for non - standard improvements. 1. Structural encroachments not otherwise listed which do not exceed 3 feet in height, including, but not limited to fences, walls, and raised planters in public rights -of -way in areas that are more than 8 feet behind the face of curbs on the following streets: a. Santa Ana Avenue from Cliff Drive to Fifteenth Street. 2. Permitted Structural Encroachments on Balboa Island along South Bay Front, and—North Bay FrontLGrand Canal, and East Bayfront are as follows: a. Planters that do not exceed 1 foot in height located within 2' -6" of the back of existing sidewalk, planted with ground cover and shrubs not to exceed 2 feet in height measured from sidewalk elevation; b. Fences with a minimum setback of 2' -6" from back of sidewalk. L For patios constructed at grade elevation to 1' above sidewalk grade elevation, Fences may be 3' high above 3 161 L -6 sidewalk grade in conformance with Building and Planning Code Regulations. ii. For patios constructed greater than 1' above sidewalk grade elevation, Fences must be set back a minimum of 3' from back of sidewalk, not exceed 2' -6" in height above the patio, have at least 40% visibility through them, and not to exceed 4' in height above existing public sidewalk grade. C. Patios with a minimum setback of T -6" from the back of sidewalk. i. Raised Patios are permitted provided they have a maximum height of T -6" above sidewalk grade, are set back a minimum of T -6" from back of sidewalk, and provided all bulkhead deadman and tiebacks supporting the Bay front bulkhead are replaced "If required by the Public Works Department" in conformance with the requirements of the Public Works Department; Stairs located a minimum of T -6" from back of sidewalk. 3. Structural encroachments not otherwise listed which do not exceed three (3) feet in height, including, but not limited to fences, walls, patios and raised planters in public rights -of -ways in areas that are five (5) feet behind the face of curb on the following streets: a. Southerly side of West Bay Avenue between 8th Street and 15th Street. If, in the opinion of the Public Works Department, the nature or location of this type of encroachment is such that Council review is warranted, the Department may forward the application to the City Council for original action. The City Manager is authorized to execute, on behalf of the City, agreements for non- standard improvements which are entered into pursuant to this section or other authorization. E. Private encroachments not requiring a permit: 1. Parkway lawn and ground cover. 4 L -6 2. Parkway sprinkling systems. 3. Use of public streets and projections over public property which are covered by the Uniform Building Code under a valid building permit issued by the City. F. Application for any permit as required by this policy shall be filed with the Public Works Department on a form to be provided by the City and shall show the proposed planting or work and the nature thereof. If the application is for a permit required under Section A, it shall be forwarded to the City Clerk for submission to the City Council. If the application is for a permit under Section B, it shall be processed by the General Services Department. Drawings for encroachment permits requiring City Council review shall be prepared to scale. Plan and elevation drawings shall accurately depict location, height, and extent of the proposed encroachments. No building permit shall be issued on a parcel whose access requires City Council review for an encroachment permit on public property, until said encroachment permit has been issued. G. Variances from the strict application of this policy shall not be granted unless individual circumstances indicate that approval will be consistent with the public interest. Adopted - August 25,1969 Amended - February 14,1972 Amended - August 11, 1975 Amended - February 9,1981 Amended - November 23,1981 Amended - October 27,1986 Amended - January 26,1987 Amended - July 13,1987 Amended - February 13,1989 Amended - August 14,1989 Amended - November 27,1989 Amended - December 9,1991 Amended - December 14,1992 Amended - July 12,1993 Amended - January 24,1994 Amended - May 9,1994 Amended - February 27,1995 Amended - February 26,1996 5 (0q L -7 ENCROACHMENTS AND BAY ACCESS ON BUENA VISTA BOULEVARD - EDGEWATER AVENUE BETWEEN BAY AVENUE AND FERNANDO STREET It is recognized that Buena Vista Boulevard and Edgewater Avenue, between Bay Avenue and Fernando Street, because of their geographical location, are used mainly to provide non - vehicular access and views to the waters of Newport Bay. The following policy regarding street encroachments and bay access has been developed to (1) provide for the existing public use of the bay beaches and waters and (2) encourage the maintenance by private property owners of the existing park -like surroundings. BUENA VISTA - BAY AVENUE TO EDGEWATER The street right -of -way in this reach varies from 30' to 35.88' in width, with private property on both sides of the public way. Improvements allowed at this location shall consist of the following: A. A six -foot wide public sidewalk along the inland side of the right -of -way line maintained by the City. B. Landscaping and park -like improvements in the remaining portion of the right - of -way shall be allowed if installed and maintained by the adjoining property owners. Low -level walls or curbing required for tidal protection will be allowed. Private improvements such as walls, fences, gates, signs and living areas such as cabanas and other roofed structures shall not be allowed except on the private property bayward of the street right -of -way. C. Access to private piers and floats shall be allowed where a harbor permit has been granted, but such access structures shall not be expanded beyond the permit dimensions. EDGEWATER AVENUE - BUENA VISTA TO ISLAND AVENUE The street right -of -way in this reach is 40' wide with private property on the inland side. The bay side is improved with a privately constructed bulkhead. 1 inC L -7 Improvements allowed at this location shall consist of the following: A. A six -foot wide public sidewalk along the inland side of the right -of -way line maintained by the City. B. Landscaping and park -like improvements in the remaining portion of the right - of-way (between the sidewalk and the bulkhead) shall be allowed if installed and maintained by the adjoining property owner. Private improvements such as fences, gates, signs, and living areas shall not be allowed. C. Access to private piers and floats shall be allowed where a harbor permit has been granted, but such access structures shall not be expanded beyond the permit dimensions. D. Such benches and view sites within the public way that may be approved by the Parks, Beaches and Recreation Department. EDGEWATER AVENUE - ISLAND AVENUE TO ALVARADO STREET The street right -of -way in this reach is 40' wide with private property on the inland side. The bay side is improved with a sloping beach leading to the waters of the bay. Improvements allowed at this location shall consist of the following: A. A six-foot wide public sidewalk along the inland side of the right -of -way maintained by the City. B. The remaining portion of the right -of -way shall be reserved as a public beach and no private improvements, impediments or boat storage shall be allowed except for access to piers and floats where a harbor or a mooring permit has been granted, but such access structures shall not be expanded beyond the permit dimensions. Any existing permits to encroach on the right -of -way shall be rescinded. EDGEWATER AVENUE - ALVARADO STREET TO FERNANDO STREET The street right -of -way in this reach is 50' wide. The bay side is improved with a sloping beach leading to the waters of the bay. The private lots bayward of the public right -of -way are under water. is L -7 Improvements allowed at this location shall consist of the following: A. A six -foot wide public sidewalk along the inland side of the right -of -way maintained by the City. B. The remaining portion of the right -of -way shall be reserved as a public beach and no private improvements, impediments or boat storage shall be allowed except for access to piers and floats where a harbor permit has been granted, but such access structures shall not be expanded beyond the permit dimensions. Landscaping improvements conforming to this policy shall be installed only in accordance with an approved plan and which has been approved by the General Services Department and a permit issued by the Parks, Beaches anJ-Ree -e :rPublic Works Department. A blanket revocable permit will be issued by the City for the existing landscaping improvements. Any existing improvements not conforming to this policy and not covered by a blanket permit shall be removed pursuant to the procedures established in Chapter 10.50 of the Municipal Code entitled 'Public Nuisance Abatement ". Nothing in this policy shall be construed as a waiver by the City of Newport Beach of any rights, title, or interest in the entire street right -of -way covered by this policy. Adopted - March 14,1977 Reaffirmed - January 24, 1994 Q PRIVATE ENCROACHMENTS IN PUBLIC RIGHTS -OF -WAY ENDING AT THE OCEAN FRONT OR AT NEWPORT BAY GENERAL Cam. It is the general policy of the City that streets, alleys and other public ways ending at the ocean front or at Newport Bay are reserved for public use or open space; and that the rights of the public, present and future, in said public ways are not to be diminished by the installation of private encroachments in said public ways. A. Private encroachments will not be permitted in said public ways unless individual circumstances indicate that approval will be consistent with the public interest. Such circumstances are: 1. The improvements do not create an impression in the mind of the average member of the public that any portion of the public way is private property. 2. The improvements do not decrease the ease of access to the beach for emergency and utility vehicles or pedestrians. 3. The improvements do not result in the loss of legal parking spaces, except for driveway approaches conforming to Council Policy L -2, "Driveway Approaches ". 4. The improvements do not eliminate views of the beach from the nearest alley or cross street that is parallel to the ocean front. TYPES OF PRIVATE ENCROACHMENTS A. Private encroachments requiring prior approval of the City Council and an encroachment — permit and if applicable an encroachment agreement from the Public Works Department. 1. Structural encroachments not otherwise listed, including, but not limited to, fences, walls, patios, raised planters, etc., which encroach in excess of one foot into the public right -of -way, or exceed three feet in height. 2. Driveway approaches not conforming to Council Policy L -2. U 10K L5L 3. Modifications to original design concepts approved by the City. 4. Signs. 5. Lighting. 6. Parkway surfacing other than standard Portland cement concrete, textured concrete, flat stone, or brick installed at grade. B. Private encroachments requiring prior written approval of the General Services Department and an encroachment permit and if applicable an encroachment agreement from the Public Works Department. 1. Bay front street ends. a. Bay front street ends at beach level may contain two - foot -wide planting areas bounded by redwood or concrete strips and containing hedges no more than two feet in height. The planing areas may be installed: i. at each side of the prolongation of the street and extending no more than 15 feet from the end of the paved street. ii. at the end of the paved street, except that a 12- foot -wide opening must be left for City emergency and maintenance equipment, and pedestrians to enter the beach area. b. Bay front street ends where tidal flow prevents standard installation may be landscaped, subject to the prior approval by the City of specific plans prepared by the applicant. Access to beach areas must be provided for in any such specific plans. C. Improvements will be installed at the expense of the adjacent property owners. d. Landscape maintenance and watering will be provided by the adjacent property owners to the satisfaction of the City. A sprinkler system connected to the adjacent property must be installed in each planter. 2 F110J M] 2. Except as provided for in Paragraphs C. and D. below, unimproved ocean front street ends may be improved under the following conditions: a. Improvements will be installed at the expense of the adjacent property owners. b. Landscape maintenance and watering will be provided by the adjacent property owners to the satisfaction of the City. A sprinkler system connected to the adjacent property must be installed in each planter. C. All work must be installed to grades established by the Public Works Department. d. A four - foot -wide sidewalk will be provided on each side of the street right -of -way adjacent to the property line. e. A minimum of 12 feet of unobstructed access to the beach in the center of the right -of -way will be surfaced with brick, asphalt, concrete or artificial turf, or an equivalent surfacing approved by the City. i. Portland Cement Concrete. Six inches over native compacted material. ii. Asphalt Concrete. Two and one -half inches of asphalt concrete over a six -inch -thick aggregate. iii. Brick. Brick installed over four inches of imported aggregate base. A dry mix of one -to -one cement and clean plaster sand to be swept into the 1/4 to 1/2 -inch space between bricks. The dry mix will be moistened with a fine spray of water after it is in place. f. Planters five feet wide will be provided between the side and the center access along a portion of each side of the street with a heavy emphasis on drought resistant plant materials. Plant material will be installed to City specifications. A six -inch to 18 -inch high lip of concrete, brick or rock may be installed as part of the planter. 3 ioff:l g. Special provisions will be made in the design when garage access is required from street ends. h. Where unusually large quantities of sand exist in a street end area, the City will assist the adjacent owners by moving the same to an area determined by the City. 3. Unimproved alleys that end at the ocean front may be improved under the following conditions: a. Improvements will be installed at the expense of the adjacent property owner. b. All work will be installed to grades established by the Public Works Department. C. Landscaping of potted plants will be permitted in the portion of the alley right -of -way that terminates at the ocean front sidewalk. A six - foot -wide inviting passageway will be maintained for pedestrian access. d. Where vehicles or pedestrians will travel, alleys may be surfaced with brick, asphalt, concrete or equivalent surfacing. e. Improvements will extend from the nearest street of alley improvement to the northerly line of the ocean front. 4. If, in the opinion of the General Services Department, the location and nature of this type of encroachment is such that review by the Parks, Beaches and Recreation Commission is warranted, the Department may forward the application to the Commission for review. C. Where street ends or alley ends are improved in accordance with City standard design criteria, standard drawings, and standard specifications, no approval of the General Services Department or Parks, Beaches, and Recreation Commission is required. An encroachment permit shall be obtained from the Public Works Department. D. In West Newport, from 36th Street to Summit Street, street ends will be improved as provided for in Policy L -12. F, Im. E. Private encroachments requiring an encroachment permit and if applicable and encroachment agreement from the Public Works Department: 1. Standard drive approaches. 2. Standard curb, gutters, sidewalks, and street pavement. 3. Carriage walks and parkway surfacing of standard Portland cement concrete, textured concrete, or brick. 4. Cable television and public utility facilities. 5. Structural encroachments not otherwise listed, including, but not limited to, fences walls, patios, raised planters, etc., which encroach one foot or less into the public right -of -way. If, in the opinion of the Public Works Department, the nature or location of this type of encroachment is such that City Council review is warranted, the Department may forward the item on to the Council for action. F. Private encroachments not requiring a permit: None. APPLICATION PROCEDURE All applications for permits to construct private encroachments under this policy shall be made to the Public works Department. INSTALLATION All improvements made under the provision of this policy shall be paid for by the owners of adjacent property. MAINTENANCE All improvements made under the provisions of this policy shall be maintained by and at the expense of the owners of adjacent property. 5 W. ENFORCEMENT Enforcement of this policy shall be the responsibility of the Public Works Department. In the event that private encroachments constructed under the provisions of this policy are not maintained, the Public Works Department shall give written notice to the permittee to restore said improvements to an acceptable condition, and further, setting forth a specified date by which time the improvements must be restored. Failure to restore said improvements within the period of time specified shall be cause for the General Services Department to remove the improvements from the public right -of -way without further notice to the permittee. Adopted - August 24, 1981 Amended - November 8,1982 Minor clarifications - November 27,1989 Amended - January 24, 1994 Formerly L -10 0 W, L -12 OCEANFRONT ENCROACHMENT POLICY The City Council has approved Amendment No. 23 to the Land Use Plan of the Local Coastal Program, which established specific restrictions and conditions on the installation of private improvements in the public right of way along the oceanfront from the Santa Ana River Channel to Channel Road. Existing encroachments are located on a very small portion of the sandy beach and do not impact any of the 89 street ends and other public facilities which provide beach access through oceanfront residential communities. However, encroachments could impact access to, and public use of, the beach in the absence of an equitable and enforceable City policy limiting the extent, size and nature of the encroachments. This policy is intended to implement Amendment No. 23 by establishing a procedure for approval of permitted encroachments, removal of prohibited encroachments, limiting the extent of encroachments, and clarification of improvements permitted within each encroachment zone. A. Definitions. 1. For the purpose of this Section, the following words and phrases shall be defined as specified below: a. Existing encroachment shall mean any encroachment or improvement installed or constructed before May 31, 1992. b. New encroachment shall mean any encroachment or improvement installed or constructed after May 31, 1992. C. Improvements or Encroachments shall mean any object or thing: i. within or oceanward of any encroachment zone described in this policy; ii. within or oceanward of the north edge of the Oceanfront Boardwalk, between 36th Street and A Street; or oceanward of any residential parcel from a point 250 feet southeast of E Street to Channel Road. 1 L -12 d. Encroachment permit shall mean the permit issued by the Public Works Director authorizing the maintenance or installation of encroachments or improvements within the encroachment zones described in this policy. e. Application shall mean any application for an encroachment permit pursuant to the provisions of this policy and the land use plan of the local coastal program. f. Oceanfront Boardwalk, Oceanfront Walk, or sidewalk, shall mean the concrete walkway along the oceanside of ocean front residential properties between 36th Street and a point approximately 250 feet southeast of E Street. B. Encroachment Zones. Subject to compliance with the provisions of this policy: 1. The owner of any ocean front residential parcel between the Santa Ana River and 52nd Street may install improvements on the oceanside of the parcel up to a maximum of 15 feet oceanward of the private property line and within an oceanward prolongation of the property lines on the side of the parcel. 2. The owner of any oceanfront residential parcel between 52nd Street and 36th Street may install improvements on the ocean side of the parcel up to a maximum of 10 feet oceanward of the private property line and within an oceanward prolongation of the property lines on the side of the parcel. 3. The owner of any oceanfront residential parcel between A Street and a point 250 feet southeast of E Street install improvements up to the sidewalk and within an oceanward prolongation of the property lines on the side of the parcel. C. Prohibited Encroachments. 1. Encroachments and improvements are prohibited oceanward of private property between 36th Street and A Street provided, however, the northerly edge of Oceanfront Boardwalk in this area is not always coincident with the oceanward private property line and improvements northerly of the north edge of the sidewalk are not considered encroachments or prohibited by this policy. 2 1115 L -12 2. Encroachments, including irrigation systems, and improvements are prohibited oceanward of any ocean front parcel from a point 250 feet southeast of E Street to Channel Road, provided existing trees which have been planted and maintained in conformance with City Council policy, and ground cover such as ice plant or indigenous plants are not considered to be an encroachment, and will not require a permit pursuant to this policy, but the City reserves the right to remove, trim or otherwise, control the type and extent of any such landscaping. 3. Any existing encroachment or improvement for which no application has been filed on or before May 31, 1992, and any new encroachment or improvement for which no application is filed prior to installation is prohibited. 4. Any new or existing encroachment or improvement which, on or after July 1, 1992, is not in conformance with this policy is prohibited. 5. Any new or existing encroachment or improvement for which there is no valid permit. D. Permitted Encroachment /Improvements. Subject to compliance with the provisions of this policy, the following improvements are permitted within the encroachment zones described in Section B: 1. Patio slabs or decks no higher than six inches above grade or the finished floor grade of the adjacent residence. The Public Works Director may approve minor dimensional tolerances for patio slabs and decks only upon a finding that the improvement is consistent with the spirit and intent of this policy and the cost of strict compliance is disproportionate to the extent of the nonconformity. Determination of grade will be made as provided in Section J. 2. Walls and /or fences less than 36 inches in height above grade or the finished floor grade of the existing residence. The Public Works Director may approve minor dimensional tolerances for walls and /or fences upon a finding that the improvement is consistent with the spirit and intent of this policy and the cost of strict compliance is disproportionate to the extent of the nonconformity. Determination of grade will be made as provided in Section J. 3 L -12 3. Existing improvements which were constructed in conjunction with development for which a building permit was issued may be approved by the Public Works Director upon a finding that the improvement is consistent with the spirit and intent of this policy and the cost of strict compliance is disproportionate to the extent of the nonconformity. 4. In no event shall the Public Works Director approve a permit for an encroachment or improvement that varies more than 12 inches from the horizontal dimensional standards of this policy. E. Prohibited Improvements. 1. Any structural, electrical, plumbing or other improvements which require issuance of a building permit. 2. Pressurized irrigation lines and valves. 3. Any object which exceeds 36 inches in height, exclusive of the following: a. trees planted by the City of Newport Beach or private parties pursuant to written policy of the City Council of the City of Newport Beach; or b. any landscaping or vegetation within the encroachment zone subject to the following: i. The vegetation or landscaping was installed prior to the first effective date of this policy; ii. The vegetation or landscaping does not block views from adjoining property; iii. The vegetation or landscaping does not function as screen planting as defined in Title 20 of the Newport Beach Municipal Code; and iv. The vegetation or landscaping does not impair or affect the health, safety or welfare of persons using the oceanfront Walk, nearby property owners, or residents of the area. F1 L' 117 L -12 Notwithstanding the provisions of this Subparagraph, the City reserves the right to reduce the height of any existing landscaping at any time, upon a determination by the Public Works Director, and after notice to the owner of property on which the vegetation or landscaping exists, that a reduction in height is necessary or appropriate given the purposes of this policy. F. Permit Process. 1. An encroachment permit shall be required for all permitted improvements. The application shall be filed with the Public Works Department on a form provided by the City. The application shall be signed by the owner of the property, or an agent of the owner if the application is accompanied by a document, signed by the owner, granting the agent the power to act for the owner with respect to the property. The application shall be accompanied by a site plan, drawn to scale and fully dimensioned, which accurately depicts the location, height, nature and extent of all proposed improvements and objects within the encroachment zone. Applications with incomplete information and /or inadequate drawings will not be accepted. 2. Applications for existing encroachments must be filed on or before May 31, 1992. Applications for new encroachments shall be filed before any encroachment or improvement is installed. No new encroachments or improvements shall be installed without an encroachment permit. 3. Upon receipt of the application, the Public Works Director shall, within fifteen (15) days after the date of filing, determine if the application is complete or if additional information is necessary or appropriate to an evaluation of the application. In the event the application is incomplete or additional information is necessary, written notice to that effect shall be sent to the property owner within twenty (20) days after the application is filed. 4. With respect to applications for existing encroachments, an inspection shall be conducted of all improvements within the encroachment zone before a permit is issued by the Public Works Director. With respect to applications for new encroachments, an on site inspection will be conducted after installation of the improvements to insure conformity with provisions of the permit and this policy. 5 L -12 5. The Public Works Director shall approve the permit upon a determination that the encroachments proposed to be constructed, or to remain, are permitted by this policy, the applicant has agreed to abide by all of the terms and conditions imposed on the permit, and the applicant has paid all fees required by this policy. 6. The Public Works Director shall have the authority to condition his /her approval of the encroachment permit as necessary or appropriate to insure compliance with the provisions of this policy. The Public Works Director shall have the specific authority to condition approval of an encroachment permit on the removal of nonconforming improvements within a specified period of time. 7. The Public Works Director shall notify the applicant of his /her decision within sixty (60) days after the application is filed and the decision of the Public Works Director shall be final. G. Term. 1. Except as provided in this Section, annual encroachment permits shall expire on June 30 of each calendar year. 2. Encroachment permits issued prior to June 30, 1992 shall expire June 30, 1993. H. Renewal. 1. Annual renewal fees shall be due and payable on or before May 31 preceeding the annual term of the permit. For example: Annual renewal fees due on May 31, 2001, are for the period July 1, 2001 through Tune 30, 2002.. 2. The Public Works Director shall approve annual renewal if: a. The applicant has complied with all standard and special conditions of approval; b. The applicant has constructed only those improvements and encroachments authorized by the permit; N 116 L-12 C. The applicant is in compliance with all of the provisions of this policy. I. Standard Conditions. 1. The Public Works Director shall impose standard conditions of approval on all encroachment permits. These standard conditions shall include, without limitation, the following: a. The obligation of permittee to comply with all of the provisions of this policy and all conditions imposed upon the permit. b. The right of the Public Works Director to revoke any permit after notice and hearing if the permittee is in violation of this policy or conditions to the permit. C. The right of the City to summarily abate encroachments or improvements which are prohibited by this policy or conditions on the permit upon ten (10) day's written notice. d. The obligation of permittee to pay all costs incurred by the City in summarily abating any prohibited improvement. e. The obligation of permittee to defend, indemnify and hold the City and its employees harmless from and against any loss or damage arising from the use or existence of the improvements or encroachment. f. Permittee's waiver of any right to contest the City's street and public access easement over property within or oceanward of the encroachment zones. g. The right of the Public Works Director or his designee to inspect improvements within the encroachment zone without notice to the permittee. h. The right of the City to cancel or modify any, or all, encroachment permit(s) upon a determination by the City Council to construct a public facility or improvement within or adjacent to the encroachment zone. 7 1_I! L -12 2. The construction of any seawall, revetment or other device necessary to control erosion, shall occur as close to private property as feasible. Erosion control devices shall not be placed or installed closer to the ocean to protect improvements or encroachments. 3. The Public Works Director may impose additional standard conditions necessary or appropriate to insure compliance with, or facilitate City administration of this policy. J. Determination of Grade. 1. The nature of the beach makes a precise determination of grade difficult. The level of the sand changes with wind, storm, and tidal conditions. The Public Works Director shall determine the level from which the height of encroachments and improvements is to be measured. In making this determination, the Public Works Director shall consider the following criteria: a. The existing grade in the area; b. Finished floor elevation or grade of the adjacent residence; C. The elevation of existing encroachments on site and on adjacent properties; d. Any data on the historic elevation of the beach in that area. K. Annual Fee. 1. The fees based on the depths of encroachment shown below shall be established by resolution of the City Council and paid annually as a condition of the issuance of encroachment permits: Depth of Encroachment 0 - 21/2 feet 21/2 - 5 feet 5- 71/2 feet 0 V L -12 71 /2 -10 feet 10 -15 feet 2. For purposes of determining fees, the average depth of the encroachment shall be used. However, the maximum depth shall not exceed the limitations specified in Section B. A dimensional tolerance not to exceed 12 inches may be allowed in determining the appropriate fee to be paid by persons with existing encroachments. 3. The annual fee shall be due and payable upon submittal of the application for the initial encroachment permit. Renewal fees shall be due May 31 of each year. The fee shall be considered delinquent thirty (30) days thereafter. Delinquent fees shall be established by resolution of the City Council. 4. The annual fee shall be used to defray City costs of administration, incidental costs of improvements on street ends along the oceanfront, and incidental costs to enhance public access and use of the ocean beaches. At least eighty -five (85 %) percent of the fees shall be used by the City to implement the mitigation plan as required by Amendment No. 23 to the Land Use Plan of the City's Local Coastal Program. (See Section M.) L. Violations /Remedy. 1. The City shall, in addition to any right or remedy provided by law, have the right to do any or all of the following in the event a permittee is in violation of the provisions of this policy or any condition to the permit, or any encroachment or improvement violates the provisions of this policy: a. Revoke the permit after giving the permittee notice and an opportunity to be heard upon a determination that there is substantial evidence to support a violation of this policy. The Public Works Director shall establish the specific procedures designed to insure that permittee receives due process of law. b. Summarily abate any encroachment or improvement violative of this policy after giving the permittee or property owner ten (10) day's written notice of its intention to do so in the event the permittee or property owner fails to remove the encroachment or improvement. The permittee or property owner shall pay all costs 9 low incurred by the City in summarily abating the encroachment or improvement. The determination of the Public Works Director with respect to abatement shall be final. M. Amendment No. 23 Land Use Plan of Local Coastal Program Mitigation Plan. To mitigate any impact on beach access resulting from the encroachments, the City shall: 1. Reconstruct thirty -three unimproved street ends between 36th Street and Summit to provide additional parking and approved access in accordance with the following: a. The reconstruction shall provide a minimum, where feasible, of two parking spaces per street end and shall proceed in substantial conformance with the standard drawing, attached as exhibit "A." b. The City shall use at least eighty -five percent (85 %) of the fees to fund reconstruction of street ends until all have been improved. The City will use its best efforts to improve three or more street ends per year (except during the year when vertical handicapped access is constructed), and anticipates that funding will be adequate to do so. C. West Newport street -end parking spaces shall be metered in the same manner as the West Newport Park in order to encourage public use of the spaces. 2. Within three years after Council approval of this Resolution, City shall construct a hard surface walkway perpendicular to Seashore Drive at Orange Avenue. The walkway shall extend oceanward a sufficient distance to allow a view of the surfline by an individual seated in a wheelchair. At least one handicapped parking space shall be designated at the Orange Avenue street end. City shall designate at least one other handicapped space at one of the first three street ends improved. 3. Subsequent to the reconstruction of all West Newport street ends, at least eighty -five percent (85 %) of the fees generated by encroachments will be used for the construction of improvements which directly benefit the 10 1 4 L -12 beach going public such as parking spaces, rest rooms, vertical or lateral walkways along the beach and similar projects. [Attachment - Exhibit "A "] Adopted - November 26, 1990 Amended - July 8, 1991 (Resolution 91 -80) Amended - March 9,1992 Amended - September 28,1992 Amended - January 24,1994 Amended - February 27,1995 Amended - February 26,1996 Amended - February 24,1997 Amended — March 22,1999 Formerly L -14 `fl L -16 TEMPORARY BANNERS EXTENDING OVER THE PUBLIC RIGHT -OF -WAY FINDINGS AND PURPOSE Temporary banners and signs pose risks to the public in the form of potential physical obstructions in or over the right of way and by distracting an individual who otherwise would, and should, focus on other users. The City Council also finds that, in the absence of the size and number limits specified in this policy, temporary banners or sign could reduce property values, adversely impact land uses, and interfere with the recreational objectives of visitors to the City of Newport Beach. A total prohibition on the installation of temporary banners and signs is appropriate with the exception of the provisions of this Policy and Chapter 20.67 of the Newport Beach Municipal Code because there are adequate alternative means of communication for those wishing to engage in commercial or non - commercial speech except for temporary real estate signs and non -profit groups organizations conducting community wide events co- sponsored by the City of Newport Beach and open to the general public. Finally, the City Council has determined that the restrictions contained in this policy and the provisions of Title 20 of the Newport Beach Municipal Code are the least restrictive means available to accomplish the public safety, economic and aesthetic objectives of the City Council. GENERAL PROVISIONS Temporary banners and signs shall not be permitted within or over any public street or pedestrian right of way with the exception of temporary real estate signs as specified in Chapter 20.67 of the Newport Beach Municipal Code and banners notifying the general public of a community wide event, open to the general public without charge, conducted by a non -profit corporation or organization, and co- sponsored by the City of Newport Beach. Temporary banners and signs shall be installed in strict compliance with the provisions of this Policy and any conditions imposed on the permit by the Public Works Director. PERMIT PROCESS A. Except as provided in Title 20 of the Newport Beach Municipal Code, no person shall install any temporary banner or sign within any public right of way without first obtaining a permit issued by the Public Works Director. 1 I �� L -16 B. Applications for a temporary banner permit shall be submitted to the Public Works Director on a form supplied by the City, and prior to 30 days of planned installation date. C. The Public Works Director shall determine if the application complies with the standards specified in this policy. D. The Public Works Director shall approve/ -er -deny /recommend City Council approval of the application within five (5) working days. E. The Public Works Director shall approve the permit if the application conforms with the standards contained in this policy. F. The Public Works Director shall deny the permit if the application does not conform to the standards in this policy and shall give the applicant written notice of, and the reasons for, the denial. G. Permittee shall submit a $300.00 refundable security deposit to be applied to any damages, repairs to standards or poles not corrected by permittee within 14 days of banner removal or any special services required by City. H. The contractor shall agree to indemnify and hold harmless the City of Newport Beach. I. The contractor shall maintain a minimum of $1,000,000 in liability insurance from a company with a Best's Key Rating Guide parameter of "A" or better and a financial size category of "VIII" or higher. STANDARDS A. Manner of Installation. Permittee shall install no more than one hundred (100) banners; 2. Banners shall be no more than 2.5 feet wide and -78_0:5 feet high and approved by the Utilities Division of the Public Works Department. Wind load calculations, determined by a registered engineer, will be required for banners greater than 20 square feet. 2 L -16 3. Banners shall not encroach on or above any portion of a right of way utilized by motor vehicles; 4. No more than one (1) banner shall be installed on any pole or standard and banners may not be installed between poles or standards; 5. The banners shall contain only the name of the permittee and the date, time and the name of the event to be conducted by the permittee; 6. All banner brackets must be mounted at least fourteen (14) feet above the ground surface; 7. All banner brackets must be installed using stainless steel band clamps and the brackets must be sufficiently strong to withstand wind -load generated by ninety (90) mile per hour winds; 8. Poles or standards must be wrapped with forty five (45) ml thick black rubber sheet or other pre- approved material under all steel brackets and clamps and no portion of any bracket shall be in direct contact with the surface of any street light pole or standard. In addition, all street light oole(s) being used must be inspected and anoroved by the Utilities 9. Banners shall be installed only at locations specified on the permit; 10. Permittee shall install and remove banners in strict compliance with the traffic control, signage and warning. device criteria specified in the WATCH handbook and /or the Caltrans manual of traffic control; 11. If more than one permittee requests the use of the same street light pole(s) at the same time, the City may require removal of some of the banners to allow other organizations to install banners authorized under City policies. B. Time of Installation. 1. Permittee shall contact the City Electrician of the Public Works Department of the City of Newport Beach at least forty eight (48) hours prior to the installation of any banner pursuant to the permit; 3 L -16 2. All banners and supporting material shall be removed within thirty (30) days after the date of installation; 3. Banners may be installed only between September 1 and May 31. C. Place of Installation. 1. Banners shall only be installed on City owned poles and standards; 2. Banners shall not be installed on any pole or standard which could create sight distance problems for pedestrian or vehicular traffic; 3. Banners shall not be installed on poles or standards in any residential district. 4. Banners shall only be installed at the approved locations indicated on the plan submitted with the banner application. Adopted - January 24, 1994 Amended - February 26,1996 Amended - February 24, 1997 Formerly M-4 4