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Home My WebLink About01 - MinutesJuly 10, 2001 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes /� Study Session DRAFT June 26, 2001- 4:30 p.m. INDEX ROLL CALL Present: Heffernan, O'Neil, Glover, Ridgeway, Bromberg, Mayor Adams Absent: Proctor (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Glover reported that she and the City Attorney will be leaving the study session at 5:15 p.m. to attend the Board of Supervisors meeting. She requested that her absence from any part of tonight's regular meeting be considered an excused absence until she returns. Regarding Item S36 (Recommendations from Ad Hoc Committee to Review EDC and EQAC, and Extension of Committee Term), Council Member Bromberg stated that he will be requesting that the EQAC resolution be continued. Regarding Item 15 (Balboa Peninsula Streetlight Modifications), Mayor Adams noted that the language used in the staff report is the type of language he would expect if staff wanted to dismiss the low bid; however, the recommendation is to award the contract to the low bidder. He asked what material the pedestrian level streetlights were made of and if the bid was a qualified bid. Public Works Director Webb reported that standards have changed and that fiberglass poles are no longer used. He noted that the green poles at the end of the Peninsula that are now oxidizing were an experimental use until 1996. Regarding the low bidder, he stated that they felt they did not have sufficient information to disqualify the contractor since no agency would say that the contractor was not competent. Further, even if the contractor was disqualified, they also had questions about the second low bidder. He reported that, even though the third bidder has better references, his bid was about $60,000 higher than the low bid and the City had difficulty during a previous project to get him to complete the project in the fashion the City wanted. He indicated that the contract can be awarded to the low bidder since complete inspections will be conducted and he feels they can work out any problems with the contractor. Mayor Adams pointed out that Council has the option to reject all bids and start over. City Attorney Burnham indicated that, based on the staff report, Council cannot find that the low bidder is not responsible and would have to award the contract under the Public Contracts Code. Mr. Webb stated that, if Council wants to postpone the project, the money would need to be rebudgeted. 2. CITY USE OF NEWPORT -MESA UNIFIED SCHOOL DISTRICT POOLS. Community Services Director Kienitz stated that the City has historically used the School District pools for its swimming programs through two Volume 54 - Page 319 Newport -Mesa School District Pools (7g) City of Newport Beach Study Session Minutes June 26, 2001 INDEX ditterent Joint Powers Agreements (JPA). She indicated that the JPA for Newport Harbor is a general JPA that is used for all School District facility recreational uses and that the City submits a permit, like other organizations, to the School District. She reported that the City normally uses this pool ten weeks every summer; however, they only plan to use it for eight weeks this summer. Regarding the Marian Bergeson Aquatic Center at Corona del Mar High School, Ms. Kienitz reported that the City contributed considerable amounts of money to fund the building of that pool. The JPA for this pool is for a 25 year term with a 25 year term extension, and provides very specific times during the year in which the City is completely responsible for the pool. She stated that this pool has been used under this JPA for lap swims, eight weeks of swim classes, and the Newport Beach Aquatics Club swim team and junior water polo team. Ms. Kienitz reported that all the recreational programs are advertised in the Newport Navigator that is sent to every home in the City, as well as some of the businesses, and that there are five pages of swimming programs which total about 300 classes. She indicated that the Newport Navigator goes to print early April and is delivered the first of May, and noted that online registration begins the first of May also. Ms. Kienitz indicated that they heard earlier this year that the School District was having problems and was considering closing both pools, and possibly draining them. She noted that Newport Harbor will be closed sometime in the future because it has to be rebuilt. She added that the School District also has concerns about the State energy mandates and the costs involved. Ms. Kienitz reported that they met with the School District in mid -April and that it was presumed there would be a resolution by the first of May; however, that did not happen because they were concerned about costs and uses by private groups and Costa Mesa. She stated that, on May 25, an agreement was reached in which the City would heat the pool, add a $10 surcharge to the cost of registration and a $15 surcharge to the Newport Beach Aquatics Club registration, and move all the swim programs to Newport Harbor. She indicated that the School District blocked all registration for a week and used the following week to reschedule the programs. She stated that the City was able to open registration on June 4. Ms. Kienitz indicated that most of the comments her office has heard has been coming from the parents of members on the high school polo teams whose practice times and locations are being changed. They also heard from lap swimmers and participants in the City- sponsored Newport Aquatics Club swim team and junior water polo team. Ms. Kienitz reported that the City now has 692 children registered for swim classes at Newport Harbor. She added that the classes are in two -week increments so there will even be more children registered by the time lessons finish on August 17. Ms. Kienitz stated that parents who have contracted with the Orange Coast Aquatics Club, Inc., a private - commercial swim club, have been contacting Council and staff. She reported that they have traditionally rented space for their swim program at the community college, but also run a program at Newport Harbor. She indicated that, when the School District saw their application, they might have thought it was the City's application and Volume 54 - Page 320 City of Newport Beach Study Session Minutes June 26, 2001 INDEX initially did not revoke their permit. She pointed out that they were also using the pool for three weeks without the school's knowledge. Ms. Kienitz reported that, after a meeting with the School District last week, the District revoked their permit because they did not feel there was a place for the club at the school. The club initially negotiated with the City to run their program if the City heats the Corona del Mar pool, as requested on tonight's budget checklist. She reported that the City will be charging the club $65/hour, plus a $40/hour surcharge. She indicated that the contact person was happy, but the parents were not. She reported that the club has since renegotiated with the School District and, if they only use five lanes, they could move their program back to Newport Harbor tomorrow. Ms. Kienitz reported that the City Manager arranged a meeting with the District Joint Committee last week and that Mayor Pro Tem Ridgeway and Council Member Heffernan attended. The School District's needs were reviewed, how they got to this point, and how they got to the $422 a day fee that the City will be paying. She indicated that the Council Members present urged the City to find a way to heat both pools so that the one pool is not crowded with all the City programs and outside groups. Ms. Kienitz reported that, if Council approves the budget checklist item, there will be revenue from the surcharge and also from any outside rentals. She stated that, if both pools are heated, the classes should remain at Newport Harbor. However, the Newport Beach Aquatics Club swim team and junior water polo, and the lap swim will be at CdM. She reported that she is unsure if the City will be renting out this pool on the weekends to outside groups. In response to Mayor Pro Tem Ridgeway's question, Ms. Kienitz agreed that the City should receive a reduction in heating costs if the Orange Coast Aquatics Club moves back to Newport Harbor and since Costa Mesa will also be using the pool. She stated that her contact at the School District has indicated that there will probably be something owed to the City, so the full $34,000 request may not be needed. In response to Council Member Glover's questions, Ms. Kienitz indicated that Don Watson is the organizer of the Orange Coast Aquatics Club, Inc. Council Member Glover stated that she received several calls over the weekend from people who said that Mr. Watson told them that Council was responsible for moving the classes to CdM. Further, Mr. Watson gave Council's telephone numbers to all the parents and told them to call Council. Mr. Watson also put this information on the club's voicemail system. Council Member Glover added that she is pleased that Council is considering heating both the pools. Mayor Pro Tem Ridgeway asked, if Mr. Watson negotiates with the School District to have his programs at Newport Harbor, whether the City has approval rights over the facility because of the JPA. Ms. Kienitz noted that the pool was already heavily scheduled, the City is only using it from 9:30 a.m. to 6:40 p.m., and the JPA requires that the City submit a permit to use the pool. Mayor Pro Tem Ridgeway added that Newport Harbor is still encumbered by a JPA for the times. He added that he heard Mike Fine, Assistant Superintendent of Business Services, basically say that the City should sign off on permits for any outside use. Ms. Kienitz believed that some people were issued permits because they said they were from the City and the School District assumed it was a City function. Mayor Pro Tem Volume 54 - Page 321 City of Newport Beach Study Session Minutes June 26, 2001 Ridgeway pointed out that there was a handwritten note on the Orange Coast Aquatics Club's permit that inferred that the City of Newport Beach approved their permit when no one from the City ever approved it. Mayor Adams stated that it is important that this issue be resolved long term and noted that the committee will be meeting again to discuss this. Mayor Adams indicated that he raised some questions at the last meeting about the costs. Ms. Kienitz noted that there is a requirement that pools be heated to 80 degrees in order to teach small children and that the City would be paying the difference to get the pool to 80 degrees. City Manager Bludau reported that the $422 a day fee also pays for some of the maintenance costs. Mayor Pro Tern Ridgeway stated that the Community Services Department sent the Utilities Department the District's worksheet to review the numbers, and that Utilities felt the numbers were justified; however, Council did not see their conclusion. He stated that Council needs to see these types of things and pointed out that the School District articulated their costs almost to the penny at the meeting he attended. Mr. Bludau noted that the $422 fee was based on 7 days a week/24 hours a day use since the pool is not shut down once it is heated. Ms. Kienitz clarified that she has offered to pay for 5 days a week and is unsure what the School District will be doing for the weekend. Mayor Pro Tern Ridgeway indicated that he told the School District that a 40% to 50% savings would be realized if the pools were covered and that the District stated that the pools had covers but no one ever used them. He indicated that they will be making that a part of their protocol. Mayor Adams added that, pursuant to a State Code, people who have pools are required to have a cover. Mr. Bludau indicated that a cover is one of the alternatives. Regarding heating both the pools, Ms. Kienitz clarified that the City has done minor maintenance at Newport Harbor and that the contract at Marian Bergeson calls for the City to have a surcharge and forward some of that to the School District for maintenance of that pool. She reported that the City has done maintenance at that pool, but has never charged a surcharge or have never been asked to charge a surcharge. Mayor Adams asked if forcing the City to pay to heat the pool is a violation of the JPA. Mayor Pro Tern Ridgeway expressed the opinion that the School District has had the ability to pass on operating and heating costs to the City but have not done so. 3. BATTERY BACK -UP FOR TRAFFIC SIGNALS. City Manager Bludau stated that there has been a lot of publicity over the last two months from local newspapers about whether cities will be utilizing battery backup for traffic signals. Transportation and Development Services Manager Edmonston stated that the staff report looks at what other cities have done and indicated that they visited trial vendor installations. He reported that the simplest way to operate intersections is to operate it in a flashing red indication for $3,500 per intersection rather than just having the lights black. He added that, for $8,000 per location, a signal can run normally for one to two hours but would revert to flashing red after two hours. He reported that, in order to do this, the green lights would need to be changed to LEDs, similar to the red lights. Volume 54 - Page 322 INDEX Battery Back -Up for Traffic Signals (75) City of Newport Beach Study Session Minutes June 26, 2001 INDEX Mr. Edmonston stated that he had meetings with the City Attorney's office, Public Works, Police, and General Services when there were rolling blackouts last fall in order to prepare a strategy on how to handle instances of blackouts. He noted that the policy right now is to set up stop signs. He indicated that people generally know to stop when traveling on larger streets, but the bigger concern involves traffic signals that are black at lighter traveled, high speed streets. He referenced the map in the staff report that shows the locations they are proposing to work in the normal mode and which locations would have the flashing red lights. This proposal would cost about $100,000 from the Circulation and Transportation )lend. He pointed out that, if something like this were approved, it would take some time to accomplish since a lot of cities are looking at doing this and the contractors and vendors are struggling to keep up with the demand. Mr. Edmonston reported that some of the key intersections in the City are maintained by CalTrans and noted that they have already changed out all the red, yellow, and green indicators to LEDs on Coast Highway. He stated that CalTrans has a desire to provide a backup power system to the intersections but they do not know when they will start and how many locations would receive those units in the City. He added that CalTrans said they would allow the City to install the system at any of their intersections and, if they get around to installing them, would give the City back its system in order for the City to install it at another location. Regarding Mayor Adams' question regarding liability, City Attorney Burnham noted that the Vehicle Code states that a non - operational signal is to be treated as a stop sign and that he does not believe there is liability to the City for a signal that is non - operational due to a power outage. Mr. Bludau indicated that this is not on the budget checklist. He stated that they are recommending that, if Council wants to do this, they would come back with a report at the next meeting. He added that there is some question as to whether the City can use Gas Tax money for this and if Senate Bill No. 84XX would provide some funding through the California Energy Commission. Public Works Director Webb clarified that the bill relates specifically to primary locations and would not fund locations that were not on a list that they generate. Mr. Edmonston reported that the batteries should be good for three years and that a replacement battery costs about $400. He reiterated that the City has already changed most of the red indicators to LEDs and that the final batch will be received shortly to finish the change. He stated that the intersections they are proposing to conduct the pilot program have the red LEDs already installed. He pointed out that the $3,500 covers the cost of a battery backup system that would run lights as flashing red and the $8,000 covers the change out of the green indicators to LEDs and the addition of the battery backup system to run the lights in a normal operation for one to two hours. He indicated that the battery of the unit they are looking at is supposed to be good for a total of six hours (one to two hours of normal operation and the remainder as flashing red). Mayor Adams asked if it would be prudent to cover all the signals on Coast Highway. Mr. Edmonston stated that this could be done; however, CalTrans thinks they may be getting money to have some of the lights backed up. Volume 54 - Page 323 City of Newport Beach Study Session Minutes June 26, 2001 Further, once signals lag for awhile, congestion builds up and there is usually a stop anyway. Mr. Bludau stated that, if the City does not do all of the intersections, it would be easy to deploy police for traffic control. Mayor Adams expressed the opinion that, for the three main intersections, the City should provide full operation to all the signals and go to flashing red for critical signals elsewhere. Mayor Pro Tem Ridgeway indicated that he spoke with two officers Friday night who said they would be satisfied with flashing red lights everywhere. He agreed that a few intersections do warrant full operation. Mayor Adams noted that it would be difficult for emergency vehicles to weave their way to Hoag Hospital if they encountered cars at every intersection because of the flashing red lights. Mr. Edmonston indicated that he will look into whether the emergency preemption systems work on battery backup signals. Mayor Adams asked what the cost would be if full operation backup units were provided on every signal on Coast Highway, Jamboree Road, and MacArthur Boulevard; and flashing red lights at the other signals they feel would pose safety issues. Mr. Webb stated that this would require 14 more locations on Coast Highway, nine more on Jamboree, and three more on MacArthur at an additional cost of $100,000 just for the flashing red lights. Mayor Pro Tem Ridgeway suggested that this come back at a regular meeting and that the Police Department provide comments. He noted that the City has a reserve account in the Circulation and Transportation Fund and added that he does not know why the City would not proceed with the full program. Mayor Adams believed that full operation battery backup should be part of new traffic signal installations. PUBLIC COMMENTS - None. ADJOURNMENT - 5:25 p.m. The agenda for the Study Session was posted on June 20, 2001, at 3:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 54 - Page 324 INDEX CITY OF NEWPORT BEACH City Council Minutes DRAFT Regular Meeting June 26, 2001- 7:00 p.m. INDEX - 4:30 p.m. CLOSED SESSION - 6:00 p.m. CLOSED SESSION REPORT - None. ................... A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Absent: Proctor C. PLEDGE OF ALLEGIANCE - Council Member Bromberg. D. INVOCATION - Chief Chaplain George B. Vogel, VA Medical Center of Long Beach. E. PRESENTATIONS Mayor Adams presented a proclamation designating July as National Parks & Recreation Month. Mayor Adams presented a memento to James Martinez, Harbor Quality Committee member, for his role in the Partnership for Clean Water 2000 -01, which is a program to teach water quality education to 1600 Newport -Mesa Unified School District fifth graders. Mayor Adams added that the partners in the program included the City, the Surfrider Foundation, CoastKeepers, the School District and the Newport Nautical Museum, and was paid for by private sector donations. Mayor Adams added that Mr. Martinez would be leaving the area soon and the City wanted to recognize his service. Mayor Pro Tem Ridgeway, Harbor Quality Committee Chairman, thanked Mr. Martinez. Mayor Pro Tem Ridgeway noted that the program would not have occurred had it not been for the efforts of Mr. Martinez. Mr. Martinez thanked his family and those involved with the program. He stated that it is an amazing partnership bringing together a government entity, private industry, the educational arena and activist groups. Volume 54 - Page 325 City of Newport Beach City Council Minutes June 26, 2001 F. NOTICE TO THE PUBLIC INDEX G. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON - DISCUSSION ITEM): Council Member Bromberg requested that Council Policy H -1, the Harbor Permit Policy, be reviewed and a proposed policy change be brought before the City Council at its meeting of July 10, 2001. He stated that the section on the issuance of pier permits on Balboa Island needs to be modified, and that the policy needs to be more specific by addressing both pier structures and vessels. Council Member Bromberg additionally requested that a report be prepared that discusses any previous studies done regarding vessel size at the piers on Balboa Island. He stated that there is a current situation where one individual is purchasing two lots, and it is not clear what is permissible with regards to vessel size. He requested that the report be presented at the City Council meeting of July 10, 2001. Council Member Bromberg stated that there have recently been two major automobile accidents on Bayside Drive, between Coast Highway and Jamboree Road. He asked that the situation be looked at and that enforcement be increased. Council Member O'Neil stated that he and Council Member Heffernan have been contacted by residents in their two districts regarding the height restrictions at Harbor View Hills and Jasmine Creek. He stated that there's a conflict in the different subdivisions regarding the restrictions, and the residents are looking to the City to resolve the problem. Council Member O'Neil stated that the communities are private with private Covenants, Conditions and Restrictions (CCRs) and that, additionally, the City does not have enforcement authority over private views. He requested that staff meet with the residents and inform them of what the City's role might be. Council Member Heffernan added that the problem is more widespread than just the two communities mentioned. Council Member Heffernan requested that the City Attorney provide information to the Ad Hoc Telecommunications Committee on what the City can do with regards to reviewing the cable contracts. He stated that he is specifically concerned about Federal preemption, levels of access and filtering. Mayor Adams stated that Dr. Virginia Barrett has served as the City's representative on the Orange County Vector Control Board for six months. He requested that she provide a brief report on what has Volume 54 - Page 326 City of Newport Beach City Council Minutes June 26, 2001 taken place at the board meetings at a future Study Session or City Council meeting. H. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. Item removed from the Consent Calendar by a member of the audience. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCES FOR INTRODUCTION 3. MODIFICATIONS TO SECTION 7.04.050 OF THE NBMC - PROHIBITION OF DOGS IN CARROLL BEEK PARK. Introduce Ordinance No. 2001 -9 amending Section 7.04.050 and pass to second reading on July 10, 2001. 4. ORDINANCE AMENDING CERTAIN PROVISIONS OF CHAPTER 12.54 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO THE OPERATION OF SCOOTERS ON THE OCEANFRONT BOARDWALK. Introduce Ordinance No. 2001 -10 amending Chapter 12.54 and pass to second reading on July 10, 2001. ORDINANCES FOR ADOPTION 5. MODIFICATIONS TO CHAPTER 12.54, MOTORIZED SCOOTERS, OCEANFRONT BOARDWALK SAFETY PROGRAM. Adopt Ordinance No. 2001 -7 6. SENIOR HOUSING IN THE GEIF DISTRICT (PA2001 -075) - AN AMENDMENT TO SECTION 20.25.020 (GEIF DISTRICT: LAND USE REGULATIONS) OF THE ZONING CODE TO ALLOW SENIOR CITIZEN HOUSING IN THE GOVERNMENT, EDUCATIONAL AND INSTITUTIONAL FACILITIES (GEIF) DISTRICT WITH A USE PERMIT. Adopt Ordinance No. 2001 -8 approving Code Amendment No. CA 2001 -001. RESOLUTIONS FOR ADOPTION FEE SCHEDULE ADJUSTMENTS. Adopt Resolution No. 2001 -46 establishing the City's 2001 Fee Schedule. 8. ACCEPTANCE OF OFFER TO DEDICATE A PORTION OF EDGEWATER PLACE AS REQUIRED BY THE CALIFORNIA COASTAL COMMISSION. 1) Accept an Offer of Dedication of the northerly 35 feet of Lot 23 of the Bayside Tract and the northerly 35 feet of Lots 1, 2, and 3 of Block 3 of the Balboa Bayside Tract for Volume 54 - Page 327 INDEX Ord 2001 -9 Dogs /Carroll Beek Park (62/70) Ord 2001 -10 Scooters/ Oceanfront Boardwalk (70) Ord 2001- 7/Motorized Scooters /Boardwalk Safety Program (70) Ord 2001 -8 PA 2001 -075 CA 2001 -001 Senior Housing (94) Res 2001 -46 Fee Schedule (40) Res 2001 -47 Offer of Dedication/ Edgewater Place/ Bayside Tract (74) City of Newport Beach City Council Minutes June 26, 2001 INDEX Volume 54 - Page 328 pedestrian access and passive recreational use; 2) adopt Resolution No. 2001 -47 accepting the dedication of the northerly 35 feet of Lot 23 of Bayside Tract and the northerly 35 feet of Lots 1, 2, and 3 of Block 3 of the Balboa Bayside Tract; and 3) direct the City Clerk to have the documents recorded in the Office of the Orange County Recorder. 9. VACATION AND ABANDONMENT OF A 10 -FOOT WIDE Res 2001 -48 PUBLIC UTILITY EASEMENT LOCATED BETWEEN 1541 Vacation and DOLPHIN TERRACE (LOT 19 OF TRACT NO. 2334) AND 1535 Abandonment/ DOLPHIN TERRACE (LOT 18 OF TRACT NO. 2334). 1) Adopt 1541 & 1535 Resolution No. 2001 -48 ordering the summary vacation and Dolphin Terrace/ abandonment of the unused easement for public utility purposes Tract 2334 located along the easterly property line of Lot 18 and the westerly (90) property line of Lot 19 of Tract No. 2334; and 2) direct the City Clerk to have the Resolution recorded by the County Recorder. 10. RESOLUTION FOR CALIFORNIA HIGHWAY PATROL Res 2001 -49 TRAINING. Adopt Resolution No. 2001 -49 granting authority to the California Highway Chief of Police to sign training agreements with the California Patrol Training Highway Patrol. (70) 11. REVISIONS TO EMPLOYER - EMPLOYEE RELATIONS Res 2001-50/Employer- RESOLUTION NO. 7173. Adopt Resolution No. 2001 -50 Employee Relations (66) CONTRACTS AND AGREEMENTS 12. TRAFFIC SIGNAL INSTALLATIONS AND UPGRADES — C -3419 AWARD OF CONTRACT (C- 3419). 1) Approve the plans and Traffic Signal specifications; 2) accept the withdrawal of the low bid from Steiny Installations and and Company because of a clerical error made in bid preparation; Upgrades 3) award the contract (C -3419) to Macadee Electrical for the total bid (38) price of $242,938, and authorize the Mayor and the City Clerk to execute the contract; and 4) establish an amount of $24,290 to cover the cost of unforeseen work. 13. 16TH STREET, MARGUERITE AVENUE, SHORECLIFF ROAD, C -3393 AND CORONA DEL MAR LIBRARY PARKING LOT 16th Street/ REHABILITATION — AWARD OF CONTRACT (C- 3393). Marguerite Avenue/ 1) Approve the plans and specifications; 2) award the contract Shorecliff Road/ (C -3393) to All American Asphalt for the total bid price of Corona del Mar Library $302,302.00, and authorize the Mayor and the City Clerk to execute Parking Lot the contract; and 3) establish an amount of $30,000 to cover the cost Rehabilitation of testing and unforeseen work. (38) 14. BALBOA ISLAND BAYFRONT REPAIRS — AWARD OF C -3420 CONTRACT (C- 3420). 1) Approve the plans and specifications; Balboa Island 2) award the contract (C -3420) to Fleming Environmental, Inc., for Bayfront Repairs the total bid price of $231,950, and authorize the Mayor and the City (38) Clerk to execute the contract; and 3) establish an amount of $23,000 to cover the cost of testing and unforeseen work. 15. BALBOA PENINSULA STREETLIGHT MODIFICATIONS — C -3416 Volume 54 - Page 328 City of Newport Beach City Council Minutes June 26, 2001 INDEX Volume 54 - Page 329 AWARD OF CONTRACT (C- 3416). 1) Approve the plans and Balboa Peninsula specifications; 2) award the contract (C•3416) to ProTech Engineering Streetlight of Anaheim for the total bid price of $375,807.50, and authorize the Modifications Mayor and the City Clerk to execute the contract; and 3) establish an (38) amount of $37,000 to cover the cost of testing and unforeseen work. 16. BAYSIDE DRIVE/MARINE AVENUE PRESSURE RELIEF C•3418 VALVE (PRV) RELOCATION — AWARD OF CONTRACT Bayside Drive/ (C- 3418). 1) Approve the plans and specifications; 2) award the Marine Avenue contract (C•3418) to CGI Construction for the total bid price of Pressure Relief $313,060 and authorize the Mayor and the City Clerk to execute the Valve Relocation contract; and 3) establish an amount of $31,000 to cover the cost of (38) unforeseen work. 17. ZONE III AND IV PUMP STATION ELECTRICAL C•3417 IMPROVEMENTS — AWARD OF CONTRACT (C- 3417). Zone III and IV 1) Approve the plans and specifications; 2) award the contract Pump Station (C•3417), Zone III and IV Pump Station Electrical Improvements, to Electrical Rich Construction for the total bid price of $609,654 and authorize Improvements the Mayor and the City Clerk to execute the contract; 3) establish an (38) amount of $50,000 to cover the cost of unforeseen work; and 4) approve the purchase of four Zone III replacement water booster pumps and motors from Sterling Peerless Pump for a cost of $138,470.70. 18. APPROVAL OF A COOPERATIVE AGREEMENT BETWEEN C•3429 THE CITY OF IRVINE AND THE CITY OF NEWPORT BEACH Campus Drive FOR THE REHABILITATION OF CAMPUS DRIVE BETWEEN Rehabilitation MACARTHUR BOULEVARD AND JAMBOREE ROAD. Approve (38) a Cooperative Agreement between the City of Newport Beach and the City of Irvine for the rehabilitation of Campus Drive between MacArthur Boulevard and Jamboree Road, and authorize the Mayor and the City Clerk to execute the agreement. 19. Item removed from the Consent Calendar by a member of the audience. 20. APPROVE AN AGREEMENT GUARANTEEING COMPLETION EPN 2001.110 OF A CONCRETE ALLEY EXTENSION STRUCTURE 405 Goldenrod ADJACENT TO 405 GOLDENROD AVENUE, CORONA DEL (65) MAR (N2001 -110). Approve an agreement guaranteeing completion of the alley extension structure approved by City Council on April 10, 2001, and authorize the Mayor and City Clerk to execute the agreement. 21. GOVERNMENTAL ACCOUNTING STANDARD BOARD C•3430 (GASB) STATEMENT NO. 34 — PROFESSIONAL SERVICES Governmental CONTRACT. Award a professional services contract to Conrad Accounting Business Services, Inc. in the amount of $42,000 to assist the City Standard Board with implementation of the infrastructure valuation and reporting (GASB) component of GASB 34. Statement 34 (38) Volume 54 - Page 329 City of Newport Beach City Council Minutes June 26, 2001 INDEX 22. MEMORANDA OF UNDERSTANDING WITH CITY MOUs - City Employees EMPLOYEES ASSOCIATION, EMPLOYEES LEAGUE, AND Association (C- 2059)/ PROFESSIONAL AND TECHNICAL EMPLOYEES Employees League ASSOCIATION. Approve Memoranda of Understanding (MOU) (C- 2065)/Prof & Tech with the three employee associations and authorize the Mayor to Employees Association execute them, with minor technical changes. (C -2051) (38) MISCELLANEOUS ACTIONS 23. BOARD AND COMMISSION SCHEDULED VACANCIES — Board and CONFIRMATION OF NOMINEES. Confirm the following Commission nominations made by the Ad Hoc Appointments Committee: Scheduled Vacancies Board of Library Trustees (24) Karen Clark Harry Hamilton Citv Arts Commission David Colley Lila Crespin (incumbent) Leslie Feibleman Jeffrey Gould Kathy Harrison (incumbent) Pamela Nestande Parks. Beaches & Recreation Roy Englebrecht Greg Ruzicka Val Skoro (incumbent) Betty Tesman Plannine Commission Jeffrey Cole Mike Kranzley (incumbent) Steven Rosansky Ed Selich (incumbent) 24. APPOINTMENTS TO THE AD HOC TELECOMMUNICATIONS Ad Hoc COMMITTEE. Confirm Mayor Adams' appointment of Donald Telecommunications Boortz and Leslie Daigle to the Ad Hoc Telecommunications Committee Committee. (24) 25. BUDGET AMENDMENT IN THE AMOUNT OF $56,000 TO BA -060 INCREASE REVENUE ESTIMATES AND EXPENDITURE Fee -Based APPROPRIATIONS DUE TO HIGHER THAN ANTICIPATED Classes ENROLLMENT IN FEE -BASED CLASSES. Approve BA -060. (40/62) 26. APPROPRIATION FOR UNBUDGETED 800 MHZ RADIO BA -061 SYSTEM EXPENSES. Appropriate $41,500 (BA -061) to various 800 MHz accounts from interest earnings in the 800 MHz Escrow account for a Radio System portion of the unanticipated/unbudgeted costs related to the (40/70) implementation of the 800 MHz Radio System. Volume 54 - Page 330 City of Newport Beach City Council Minutes June 26, 2001 27. THE CIRCULATION IMPROVEMENT AND OPEN SPACE AGREEMENT ( CIOSA) ANNUAL REPORT. Receive and file. 28. RESPONSE TO HUD STAFF COMMENTS ON FY1999 -2000 . CAPER. Receive and file. 29. Item removed from the Consent Calendar by a member of the audience. S35. APPOINTMENTS TO THE ECONOMIC DEVELOPMENT COMMITTEE. Approve appointments of John Robinson and Clayton Shurley. S36. Item removed from the Consent Calendar by Council Member Bromberg. Motion by Mayor Pro Tern Ridgeway to approve the Consent Calendar, except for those items removed (1, 19, 29 and S36). The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor I. ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE SPECIAL AND REGULAR MEETING OF JUNE 12, 2001. Jim Hildreth, 120 The Grand Canal, referred to Page 311 of the minutes from the regular City Council meeting of June 12, 2001, and suggested that it be noted in the minutes that the City Attorney was not present in the Council Chambers when Mr. Hildreth spoke during Public Comments. Motion by Mavor Pro Tern Ridgeway to waive reading of subject minutes, approve as written and order filed. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor 19. LEGAL ADVERTISING BID FOR FISCAL YEAR 2001 -2002. Volume 54 - Page 331 INDEX CIOSA Annual Report (68) HUD /FY 1999 -2000 CAPER (87) EDC (24) FY 2001 -2002 Legal Advertising City of Newport Beach City Council Minutes June 26, 2001 Jerry White, Publisher of The Newport News, stated that The Newport News is the oldest paper in Newport Beach, and is adjudicated by the Superior Court to publish legal advertising for the City and the County of Orange. He stated that his paper submitted a bid for the City's fiscal year 2001 -2002 legal advertising. Although their bid was the lowest bid, he stated that he was informed by the City Clerk that she would be recommending that the bid of the Daily Pilot be accepted instead. Mr. White protested this recommendation. He requested that the bid not be overturned and that the bid of The Newport News be accepted. Mayor Pro Tem Ridgeway asked Mr. White how many days a week The Newport News is published. Mr. White responded that they are published once a week on Fridays. Judy Oetting, with the Daily Pilot, stated that she has handled the City's advertising for approximately eighteen years. She stated that a city the size of Newport Beach would have difficulty in handling a weekly newspaper. Ms. Oetting stated that she has worked well with the City Clerk's office and the Planning Department over the years. City Attorney Burnham stated that the City Charter requires the City Clerk to issue a notice inviting bids, but does not require that the lowest bidder be selected. City Clerk Harkless stated that a daily publication is desired because, quite often, notices are last minute and deadlines have to be met. She stated that the Daily Pilot has worked well with the City and provides the flexibility that a weekly paper can't. City Clerk Harkless added that if The Newport News were chosen, the City would have the option to publish in the Daily Pilot when a deadline with The Newport News couldn't be met, but it would be at a much higher rate than offered in the Daily Pilot's bid. She stated that the annual net cost could possibly end up being higher with The Newport News, because the Daily Pilot would most likely be used frequently. Mayor Pro Tem Ridgeway stated that the staff report clearly explains why staff is recommending the Daily Pilot. Motion by Mayor Pro Tem Ridgeway to accept the bid of the Daily Pilot and authorize a purchase order for the one -year period of fiscal year 2001 -2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor 29. APPLICATION BY RONALD CORRADINI FOR TRANSFER OF Volume 54 - Page 332 INDEX (32) HP #225 -1210/ City of Newport Beach City Council Minutes June 26, 2001 THE HARBOR PERMIT FOR THE PIER AND FLOAT BAYWARD OF 1208, 1210 SOUTH BAY FRONT. Richard Higbie, Attorney for Perry & Edith Grant who reside at 1208 South Bay Front, stated that the City has historically protected the rights of the bay front property owners on Balboa Island. He added, however, that in the current situation where a pier is in front of two properties, the Harbor Permit Policy is not being followed. Mr. Higbie stated that it is necessary for a new permit to be applied for, and that the current permit should not just be transferred. He stated that the pier in question was intended to benefit both of the properties at 1208 and 1210 South Bay Front, and that a permit for the exclusive use of the pier by 1210 South Bay Front should not be approved. Mr. Higbie suggested that the Harbor Permit Policy be followed and a new permit should be issued jointly to both property owners. Jim Hildreth, 120 The Grand Canal, stated that the issue of joint tenancy of a pier will be coming up again. He referred to a property on Little Balboa Island where a single pier splits the line on two properties. He noted that what is decided by the City Council for the current agendized item will also affect the pier mentioned on Little Balboa Island. Buzz Person, Attorney for Ronald Corradini who owns the property at 1210 South Bay Front, stated that Mr. Corradini applied for a new permit with the City, pursuant to the existing permit. Mr. Person stated that the pier was constructed in 1945 and the owner at 1210 South Bay Front has always had exclusive use of the pier. He asked that the staff recommendation be approved. Ronald Corradini, 1210 South Bay Front, stated that it has been mentioned that the 1208 address was removed from the pier. Mr. Corradini stated that he has no knowledge of an address ever being on the pier. Mayor Adams asked why it is not being recommended to relocate the structure to the 1210 side of the boundary line. Harbor Resources Manager Melum stated that it is an option, but staff is recommending that the structure remain where it is because of the length of time it's been permitted at the current location with various property owners over the years. He added that relocating it could also disturb a mooring to the east and some established beach uses. Harbor Resources Manager Melum stated that the existing pier is also surrounded by eelgrass, which would make relocation difficult. Council Member Bromberg stated that it is important to keep the pier in its current location for the reasons mentioned by Harbor Resources Manager Melum. He added that it is also important to adhere to the Balboa Island Pier Permit Policy. Council Member Bromberg stated that the property owners of 1208 South Bay Front have tolerated the pier since 1945. Volume 54 - Page 333 INDEX 1208 South Bay r'ront 1210 South Bay Front (51) City of Newport Beach City Council Minutes June 26, 2001 Motion by Council Member Bromberg to authorize the transfer of Harbor Permit #225 -1210 allowing Mr. Ronald Corradini's pier and float to remain on the bayward extension of the common property line between 1208 and 1210 South Bay Front. Mayor Pro Tem Ridgeway asked who has the right to use the dock itself. City Attorney Burnham stated that the term "pier" includes the walkway and the float, and the permittee has the exclusive right to use the pier. Harbor Resources Manager Melum added that a joint permit requires the agreement of both property owners, and that this has never been the case for the subject pier. He stated that the records show that at one time 1208 and 1210 South Bay Front were one lot. When they were split into two lots, the right to use the pier was retained by 1210 South Bay Front. Council Member Glover requested an explanation of the problem with the eelgrass. Harbor Resources Manager Melum stated that the eelgrass along South Bay Front has grown rapidly, but is sun sensitive so does not grow under docks. By moving the pier, existing eelgrass would be shaded which would require the applicant to mitigate the transplant. City Attorney Burnham added that relocating the pier would also require Coastal Commission approval. Council Member Bromberg stated that it needs to be taken into consideration that 1210 South Bay Front has had exclusive use of the pier since 1945. Mayor Pro Tem Ridgeway stated that Council Policy H -1, the Harbor Permit Policy, requires that joint ownership pier permits provide all parties equal rights. He stated that this is inconsistent with what is being recommended by staff. City Attorney Burnham stated that Mayor Pro Tem Ridgeway is referring to a section in Policy H -1 that is a general rule, applying to any new pier permit applications. He stated that the rule that is being followed for the current situation is the rule that pertains to existing piers. He stated that it is more difficult to relocate piers than it used to be. Mayor Pro Tem Ridgeway stated that he couldn't support staffs recommendation without a review of the entire policy, since it appears to be inconsistent with the policy. City Attorney Burnham stated that staff can look at the policy, as requested earlier in the meeting by Council Member Bromberg. The motion carried by the following roll call vote: Ayes: O'Neil, Glover Noes: Heffernan Abstain: Ridgeway Absent: Proctor Bromberg, Mayor Adams S36. RECOMMENDATIONS FROM AD HOC COMMITTEE TO REVIEW EDC AND EQAC, AND EXTENSION OF COMMITTEE Volume 54 - Page 334 INDEX Res 2001 -51 Ad Hoc Committee City of Newport Beach City Council Minutes June 26, 2001 Council Member Bromberg stated that Council Member Proctor is not in attendance at the current meeting and is concerned about the issue. Motion by Council Member BromberLr to continue the adoption of Resolution No. 2001 -_ amending Resolution No. 2000 -90 regarding the Environmental Quality Affairs Citizens Advisory Committee (EQAC); and adopt Resolution No. 2001 -51 amending Resolution No. 2001 -38 and extending the term of the Ad Hoc Committee to Review the Economic Development Committee (EDC) and EQAC. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor J. PUBLIC COMMENTS Robert Hanley, Santa Ana Heights, stated that he recently received a notice from the City of Costa Mesa, stating their intent to annex the West Santa Ana Heights area. Mr. Hanley stated that he felt that the residents of West Santa Ana Heights had done everything they could to have their area included in the annexation of Santa Ana Heights by the City of Newport Beach. He asked for the City of Newport Beach to support the annexation of West Santa Ana Heights. Mayor Adams requested that City Manager Bludau meet with Mr. Hanley. City Manager Bludau stated that the City has already informed the residents of West Santa Ana Heights that since their sphere of influence is with the City of Costa Mesa, the decision would be made by the Orange County Local Agency Formation Commission (LAFCO). Russell Niewiarowski, Santa Ana Heights, announced the formation of The New Millennium Group (TNMG), a political action committee. He stated that the committee intends to turn around the E1 Toro airport process by being a voice of reason in Orange County. He stated that TNMG will also launch the Orange County Public Benefits Initiative, which will allow for an alternative airport to take place. Jim Hildreth, 120 The Grand Canal, stated that he is insistent about a safety issue that he feels has been ignored. He stated that the City - installed ladder is inadequate, and the City has taken on liability by installing it and removing the prior structure. Mr. Hildreth stated Volume 54 - Page 335 INDEX to Review EDC and EQAC (24) City of Newport Beach City Council Minutes June 26, 2001 that he has a gimpy leg, which causes him to limp sometimes but not all the time. He asked the City to allow him to build a structure that would provide safe access and be identical to the other structures in the canal. He stated that he hopes no one is ever injured on the existing ladder. Mr. Hildreth added that the closest dock that might be considered an alternative has been locked. Council Member Heffernan stated that he is almost willing to pay for a new structure just to stop the issue from being addressed at every City Council meeting. He stated that he will investigate the matter. Mayor Adams stated that Mr. Hildreth does not have the right to build a pier at that location. K. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES — None. L. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 30. PLANNING COMMISSION AGENDA FOR JUNE 21, 2001. Planning Director Temple stated that the Planning Commission had four items on their June 21, 2001, agenda. She stated that one of the items was the draft Housing Element, which is currently in its mandatory 45 -day review with the State Department of Housing and Community Development. She stated that staff will prepare a revised draft of the Housing Element, which incorporates the comments made by the State and the Planning Commission. She stated that a public hearing would then be scheduled for a Planning Commission meeting. Planning Director Temple stated that another item considered by the Planning Commission was a revision of Title 19 of the Newport Beach Municipal Code, the subdivision code. She stated that the revision will correct some peculiarities and inconsistencies discovered in the Code. She stated that an updated draft will be provided to the Planning Commission at their meeting of July 19, 2001. Planning Director Temple stated that the Planning Commission also reviewed the proposed revisions to the Newport Coast Development Agreement, and recommended approval. She stated that the last item was a variance on Pacific Drive, which was referred back to the applicant with some suggestions for revisions. Motion by Council Member O'Neil to receive the oral report on the most recent Planning Commission actions; and receive and file the written report. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Volume 54 - Page 336 INDEX Planning (68) City of Newport Beach City Council Minutes June 26, 2001 Noes: None Abstain: None Absent: Proctor M. PUBLIC HEARINGS 31. UNDERGROUNDING UTILITIES IN PROPOSED ASSESSMENT DISTRICT NO. 82 (BOUNDED BY GOLDENROD AVENUE, OCEAN BOULEVARD, HELIOTROPE AVENUE, AND BAYVIEW DRIVE IN CORONA DEL MAR). Mayor Adams announced that this was the time and place fixed for the public hearing on protests or objections to the Resolution of Intention, Assessment Engineer's Report, proposed assessments and all other matters relating to Assessment District No. 82. He further announced that all written protests and all ballots must be received by the City Clerk prior to the closure of the public hearing. City Clerk Harkless announced that the notice of the Public Hearing had been given in the manner and form as required by law and that a Certificate of Compliance was on file certifying the mailing of the notice and ballot materials to property owners within the District and filing of the proposed boundary map in the Office of the County Recorder. Public Works Director Webb displayed a map of the district, which includes 26 parcels. He stated that the district will underground overhead electrical, telephone and cable TV lines. He added that the Municipal Improvement Act of 1913 is being used to cover the assessments. He stated that the total cost of the improvements is $319,332.21, and added that an income tax component could increase the assessment to $366,821.61 if included by the Edison Company. Public Works Director Webb stated that the average cost per parcel is approximately $14,000 with the tax and $11,955 without the tax. Debbie Cobb, Assessment Engineer, Berryman & Henigar, stated that the purpose of the district is to provide financing for the construction of the undergrounding in the district, as described by Public Works Director Webb. Ms. Cobb stated that there are 26 single - family resident parcels, all of which receive equal special benefit of the undergrounding conversion of the utilities. She stated that each parcel is being assessed equally at a cost of $14,108. She stated that if a simple majority of the ballots received, based on assessment weight, are in favor of forming the district, Berryman & Henigar recommends approval of the resolutions. Council Member Heffernan asked how the configuration of the district was developed. Ms. Cobb stated that it is based on the design constraints of the area, as reviewed by the Edison Company. Mayor Adams opened the public hearing. Volume 54 - Page 337 INDEX Res 2001 -52 Res 2001 -53 Assessment District 82 (89) City of Newport Beach City Council Minutes June 26, 2001 INDEX Frank Remer, 210 Goldenrod, stated that he has learned that there would be a fairly substantial cost attributed to each parcel, depending upon what construction would be necessary. He suggested that the residents in the area consider forming a cooperative group to work with a single contractor. Jim Hildreth, 120 The Grand Canal, stated that the bids coming in for the undergrounding taking place on Balboa Island have been extreme. He stated that it might be nice to work with a single contractor, but it might not be advisable. Mayor Adams asked if anyone wanted to speak against the acquisition of the improvements. Tom Hoatson, 2808 Ocean Blvd., stated that he already has underground utilities and can't understand why he's been put in the district. He stated his concern for being put in additional assessment districts in the future. Mayor Adams asked if anyone wanted to speak in favor of the assessment district, noting that Mr. Remer spoke earlier in favor of the district. In regards to Mr. Remer's earlier comments about working with contractors, Council Member Bromberg stated that the residents would be getting a letter from the City prior to the hiring of any contractors. He stated that the Little Balboa Island Property Association interviewed several contractors and then passed on the information learned to their residents. Mayor Adams announced that all written protests and ballots must be received by the City Clerk by this time. He stated that no more written protests or ballots may be submitted. Hearing no further testimony, Mayor Adams closed the public hearing. Meeting recessed at 8:25 p.m. to allow the City Clerk to count the ballots. The meeting was reconvened at 8:35 p.m. Ms. Cobb addressed the earlier comments made by Mr. Hoatson by stating that Mr. Hoatson's property is a part of the Edison Company design plan, with his service conversion going back to the alley that is a part of the district. She added that he would not be a part of another district. City Clerk Harkless announced that the assessment district is comprised of 26 parcels. She announced that 17 votes were received in favor of the assessment and 1 in opposition. Volume 54 - Page 338 City of Newport Beach City Council Minutes June 26, 2001 Motion by Council Member O'Neil to adopt Resolution No. 2001 -52 approving contracts for ownership of utility improvements; and adopt Resolution No. 2001 -53 declaring the results of the ballot tabulation, confirming the Assessment, ordering the acquisition of improvements, and approving the Assessment Engineers Report for Assessment District No. 82. Council Member Glover congratulated the property owners in the district on the accomplishment of forming the district. She recalled that the process was first before the City Council in 1994, indicating that it has been a long process. Council Member O'Neil also congratulated the residents. He stated that the undergrounding would add value to the properties, create a nicer aesthetic environment for the community and provide for safer streets. Council Member Heffernan noted the financial solvency of the utility companies and the possibility of some of them going out of business or filing bankruptcy. He asked when the contractors would receive their payment. Public Works Director Webb stated that the bonds are sold, the Edison Company executes a contract with the contractors, the money is deposited with the Edison Company and they control paying the contractors. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor 32. AMENDMENTS TO THE ANNEXATION AND DEVELOPMENT AGREEMENT FOR THE NEWPORT COAST. Assistant City Manager Kiff provided a newly revised development agreement, and noted that the changes included an introduction of the City's bill in the State Senate that preserves the local coastal program for the Newport Coast and additional water quality monitoring for the Crystal Cove portion of the development. He additionally noted that the Planning Commission approved the development agreement, with amendments, and that this information was included in the addendum to the staff report. Mayor Adams opened the public hearing. Hearing no testimony, Mayor Adams closed the public hearing. Motion by Council Member O'Neil to authorize the Mayor to sign the Newport Coast Annexation and Development Agreement as presented and further amended by the revision provided. Volume 54 - Page 339 INDEX C -3432 Annexation and Development Agreement/ Newport Coast (21/38) City of Newport Beach City Council Minutes June 26, 2001 Council Member O'Neil stated that it has been the City's intent to honor The Irvine Company's development agreement with the County of Orange and the Local Coastal Plan approved by the Coastal Commission. Mayor Pro Tern Ridgeway asked if it would be necessary to bring the development agreement back to the City Council for any non- substantive changes. City Attorney Burnham stated that the agreement would be brought back to the City Council for any changes, other than typographical errors. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor 33. KOLL OFFICE SITE B: GENERAL PLAN AMENDMENT (GPA) NO. 97 -3(B), ZONING AMENDMENT NO. 905, TRAFFIC STUDY NO. 119, DEVELOPMENT AGREEMENT NO. 16, AND ENVIRONMENTAL IMPACT REPORT (EIR) NO. 158. Planning Director Temple stated that if the item is approved, it would allow for the construction of a ten - story, 250,000 square -foot office building at the corner of Jamboree Road and MacArthur Boulevard in the Koll Center Planned Community. Planning Director Temple displayed the applicant's scale model of the project. Planning Director Temple stated that the analysis in the staff report shows how the proposal fits within the land use policies of the General Plan, the development standards of the Zoning document, and the City's standards related to the preservation of an adequate level of traffic service in the City. Additionally, detailed information on the project's potential to impact the physical environment of Newport Beach and the surrounding area is detailed in the Environmental Impact Report (EIR). Planning Director Temple stated that, in summary, a few items are worthy of note. She stated that the project can be determined consistent with the policies of the Land Use Element. However, the judgment of the City Council is required to make the determination of consistency with the policy in regards to the maintenance of desired levels of traffic service. The balance to be considered is the adequacy of the suggested traffic improvement contributions when compared to the degradation of the performance of four intersections in the short and long term. Planning Director Temple stated that the project includes the construction of two parking structures. The Planning Commission Volume 54 - Page 340 INDEX C -3433 Ord 2001 -11 Ord 2001 -12 Res 2001 -54 Res 2001 -55 Res 2001 -56 Koll Office Site B GPA 97 -3(B) Zoning Amendment 905 Traffic Study 119 Development Agr 16 EIR 158 (38/45) City of Newport Beach City Council Minutes June 26, 2001 INDEX suggested provisions in the Zoning document and Development Agreement regarding the design and review of these structures prior to the issuance of a building permit. She stated that the intent of these provisions is to insure that the design and landscaping result in an aesthetically pleasing development. Planning Director Temple stated that the short -term, or Traffic Phasing Ordinance (TPO) analysis, shows that the project will impact the level of service at the Jamboree Road/MacArthur Boulevard intersection by 1 %. As a result, the project's share of an identified improvement in an amount of $70,000 has been made a condition of approval. Planning Director Temple stated that the long -range traffic analysis shows that the project will contribute to impacts at four intersections, three in Newport Beach and one in the City of Irvine. Contributions to improvements at two of these intersections have been made conditions of approval. Feasible improvements at the other two intersections have not been identified. She noted that in order to approve the project, findings and a statement of overriding considerations must be adopted by the City Council pursuant to the California Environmental Quality Act. Planning Director Temple stated that the initial submittal did not include a request for approval of a Development Agreement. In the early deliberations by the Planning Commission in Spring of 2000, it became clear to the Planning Commission that there was not sufficient justification to approve a General Plan Amendment of this magnitude absent the additional considerations, which could be achieved through such an agreement. This caused the applicant to request several continuances to allow time to prepare an agreement that met the needs and interests of the City, as well as providing appropriate assurances to the developer. Planning Director Temple stated that the key features of the agreement include the payment of $8 per square foot to fund long range traffic improvements, the payment of $0.45 per square foot to help fund an airport area study as part of the General Plan Update, and the payment of $60,000 to contribute to the site acquisition, construction and/or equipment and staffing of a new fire station to serve the airport area, and the payment of Fair Share and Traffic Phasing Ordinance fees. Planning Director Temple stated that a detailed analysis of the probable environmental effects of the project is presented in the project EIR. She added that the EIR concluded that, after compliance with all recommended mitigation measures, the project would result in unmitigatable adverse affects to traffic and air quality. These include the long term degradation to traffic service at MacArthur Boulevard/Jamboree Road and Jamboree Road/Campus Drive, the short term air quality impacts related to the use of construction equipment, and the long term air quality impacts, since reactive organic gas (ROG) and oxides of nitrogen (NOx) will exceed the significance thresholds established by the South Coast Air Quality Volume 54 - Page 341 City of Newport Beach City Council Minutes June 26, 2001 INDEX Management District (SCAQMD). Planning Director Temple stated that because of the impacts, the California Environmental Quality Act requires the City to adopt a Statement of Overriding Considerations, in addition to the otherwise required findings of fact, if it wishes to approve the project. The statement of overriding considerations, included in the proposed Resolution of EIR Certification, enumerates the project benefits, which could be found to outweigh the negative affects of the project. These benefits are substantially the same as those benefits identified in the development agreement. Planning Director Temple noted that additional comments have been received regarding the specificity of mitigation measure 4.4.1 regarding the interim parking management plan. She provided the refinements to the measure that would help clarify the specifics of the requirements. She stated that if the City Council approves the project at the current meeting, it is recommended to incorporate these changes. Planning Director Temple stated that a complete fiscal impact analysis was also prepared as required by City Council Policy F -17, Economic Development Policy. That report concluded that the project's net recurring surplus would be approximately $23,000 per year as compared to the existing on -site entitlement, or $52,000 more than the site currently produces under the existing development. Planning Director Temple stated that the Economic Development Committee voted to support the project because of its contribution of over $2 million to infrastructure in the airport area and because it will benefit the economy of the airport area. She added that, as earlier noted, the Planning Commission extensively reviewed all aspects of this application. At the conclusion of their deliberations, they recommended approval of the project to the City Council by a vote of 6 ayes, with one Commissioner absent. City Attorney Burnham noted the revised Development Agreement that was provided to the City Council earlier in the meeting. He stated that the modifications relate almost solely to the requirement for an election, if the City Council approves the project. Keeton Kreitzer, Environmental Consultant, introduced himself and stated that he prepared the EIR. Council Member Glover asked if the current building codes in California include parameters on how best to achieve energy savings. Mr. Kreitzer stated that they do and noted Title 24, which mandates specific energy saving requirements in terms of construction techniques. Council Member Glover stated that the City should be able to ensure that the Koll project includes the latest technology regarding the environment and energy savings. Mr. Kreitzer stated that the City can place additional requirements on the applicant, Volume 54 - Page 342 City of Newport Beach City Council Minutes June 26, 2001 INDEX above those already mandated in Title 24. He added that Title 24 has been in place for ten to fifteen years. Building Director Elbettar stated that more restrictive energy standards went into effect June 1, 2001, and that these standards would apply to the Koll project. Tim Strader, 3801 Inlet Isle, partner in Koll Center Newport A, the owner of the property and the applicant for the project, stated that he has personally been involved with the project since 1972. He added that the general plan amendment was applied for in 1997. He stated that they have presented all of the required information to the City, so that an informed judgment could be made. Mr. Strader noted that the project is surrounded by three freeways and the City of Irvine. He stated that it would have little impact on the residential areas in the City. He stated that the problem with the traffic at the airport is regional in nature and will require the cities in the area to get together. Mr. Strader stated that Koll Center will be required to pay $2 million in mitigation fees, plus the $1.3 million also required. He concluded by stating that they are willing to accept all of the conditions that have been required. Mayor Adams opened the public hearing. There being no testimony, Mayor Adams closed the public hearing. Mayor Adams stated that he respects the recommendation of the Planning Commission and is in support of the project. He added, however, that he does have some concerns with regards to traffic. He stated that the traffic studies do not address on -site circulation or driveways. He specifically mentioned the access to Von Karman Avenue, just north of MacArthur Boulevard. Mayor Adams stated that there could be similar issues at the other driveways. He added that he also noticed that the traffic studies did not look at daily delivery vehicles to the site. Transportation/Development Services Manager Edmonston stated that the City has primarily used the TPO, adopted in 1978, as the guideline and analysis for addressing projects. He stated that the consultant did do an analysis of the driveway on Jamboree Road due to concerns of it being overburdened by the Koll project and the then - proposed Conexant project. He stated that it was determined that there was plenty of room for traffic to move through the driveway. Transportation/Development Services Manager Edmonston added that traffic counts were done in 1999 for the intersection at MacArthur Boulevard and Von Karman Avenue. He stated that these counts showed that the intersection operated at high levels of operation and so was not included in the study. Mayor Adams asked what could be done to ensure that the issues he brought up would be addressed. He stated that there could be a simple solution and that split phasing on Von Karman Avenue might Volume 54 - Page 343 City of Newport Beach City Council Minutes June 26, 2001 INDEX be considered. He thinks the problems can be solved, but they need to be looked at. Transportation/Development Services Manager Edmonston stated that more detailed site reviews are normally done during the design and plan checking steps, but additional traffic studies are not usually done. He added that the Planning Commission did feel that the $2 million being required of the applicant would be sufficient to address related items. Mayor Adams agreed that the contribution was significant, but he stated that something still needs to be done to ensure mitigation of any problems at the driveways. Mayor Pro Tem Ridgeway asked if approval of the project by the City Council could be conditioned on an evaluation of the issues addressed by Mayor Adams. City Attorney Burnham stated that the City Council could do this and, in addition, could require that the applicant pay for any necessary improvements. He stated that this could be done through an amendment to the Development Agreement. Mr. Strader stated that they would accept such a condition. Mayor Adams stated that there should be standard conditions relating to on -site circulation. City Attorney Burnham stated that there is a requirement for Planning Commission review of the site plan and the internal circulation. He suggested that this might be an appropriate time to evaluate the issues raised by Mayor Adams. Public Works Director Webb stated that the mitigation measures also include some general comments in regards to Mayor Adams concerns. Council Member Glover confirmed with Transportation/Development Services Manager Edmonston that a grade separation at Jamboree Road and MacArthur Boulevard would not be necessary. He stated that the project has a long -term impact and staff is looking at alternative ways to address this. Council Member Glover recalled the City Council in the past being opposed to any grade separations in the City. Mayor Adams suggested that the issue could possibly be addressed in the general plan update and, specifically, the circulation element. Mayor Adams stated that the traffic impact study and the traffic component of the EIR were done based on standards that have been in place for quite some time. He suggested that the standards be revisited. He stated that the City's level of analysis is not at par with what other cities are doing. Transportation/Development Services Manager Edmonston stated that he would appreciate additional input and would be prepared to make a report. Council Member Bromberg asked how the density in the area would be characterized. Planning Director Temple responded by stating that the overall density of the airport area is approximately a .5 floor area ratio. She added that Newport Center is approximately .3, and most of the on- street commercial districts have current zoning Volume 54 - Page 344 City of Newport Beach City Council Minutes June 26, 2001 INDEX density limits of a .5 floor area ratio. She stated that the airport area is not remarkably higher than other parts of the City, partly due to the older districts that were built before the current on -site parking standards were adopted. Motion by Mayor Pro Tem Ridgeway to adopt Resolution No. 2001 -54 certifying the EIR; adopt Resolution No. 2001 -55 approving the Traffic Study; adopt Resolution No. 2001 -56 approving the GPA; introduce Ordinance No. 2001 -11 approving the Development Agreement, and pass to second reading on July 10, 2001; introduce Ordinance No. 2001 -12 approving the Zoning Amendment, and pass to second reading on July 10, 2001; and to include necessary mitigation measures for the Von Karman Avenue and MacArthur Boulevard corridor and the revised parking mitigation measure (MM 4.4.1). Council Member Heffernan stated that approximately 65% of the voters voted for the Greenlight measure to constrain growth in the City. He stated that the project will have a substantial impact on the City and approving it is doing the opposite of what the voters want. Council Member Heffernan stated that if the project is approved by the City Council, the voters will make the ultimate decision. He confirmed with City Attorney Burnham that the revisions to the Development Agreement make it clear that the Development Agreement does not become effective unless the voters approve the general plan amendment for the project. Mayor Pro Tem Ridgeway stated that the Greenlight measure was more critical of what was happening in the coastal area of the City, particularly Newport Center and Newport Dunes. He stated that the airport area is really a separate part of the City. He stated that he feels that the City has succeeded in reviewing the project in depth. Council Member Glover stated that she did not give the Greenlight measure any consideration when evaluating the Koll project. She stated that the project is in an area that is committed to offices and commercial activity, and is away from most of the residential areas of the City. She stated that she feels that the project will contribute to the City in a positive way. Council Member Glover emphasized that balance in the City is needed and is what makes a community. She stated her hope that the voters would consider balance, the project location and the positive contributions. Mayor Adams stated that every project that comes before the City Council, whether it includes a general plan amendment or not, deserves to be looked at on its own merit. He stated that he has heard no opposition to the project and that this either means that there is no opposition to the project or that residents have decided not to become involved with the process. He hoped that the latter was not true and that residents aren't just waiting for the project to be presented to the voters. He encouraged the public to provide input during the process. Volume 54 - Page 345 City of Newport Beach City Council Minutes June 26, 2001 Council Member Bromberg stated that the City Council is listening to the voters of the Greenlight measure by reviewing the project in a very detailed manner. He stated that he also has received no input in opposition to the project, and noted that opposing the project would take away the chance for the voters to voice their opinion. Mayor Adams stated that the sentiments expressed by the passing of the Greenlight measure are respected and he has conducted himself accordingly since the measure was passed. He stated that he scrutinized the traffic analysis and is making his best judgment, which he does not feel is inconsistent with what the residents of the City want. Council Member Heffernan stated that the sentiment expressed by the voters was a suspicion that the elected officials weren't doing their job and the voters wanted to have the final say. Council Member Bromberg stated that there is no deviousness on the City Council or its efforts to make sure that the Greenlight measure works for the City. Mayor Pro Tem Ridgeway amended his motion to include a requirement that prior to the issuance of a building permit, the owner shall prepare a study of the on -site circulation, access, delivery access, queuing and the impact of vehicular ingress and egress to the site at all of the driveways, with the study conducted to the satisfaction of the Transportation/ Development Services Manager and the requirement that the owner shall make, and pay for, the improvements necessary to mitigate impacts prior to occupancy. The amended motion carried by the following roll call vote: Ayes: O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: Heffernan Abstain: None Absent: Proctor N. CURRENT BUSINESS 34. 2001 -02 BUDGET ADOPTION. City Manager Bludau stated that the resolution before the City Council at the current meeting would adopt the City's fiscal year 2001 -2002 budget in the amount of $145,039,879. He stated that this includes an operating budget of approximately $110 million and a capital improvement budget of approximately $34.8 million. City Manager Bludau stated that prior to adoption of the resolution, the City Council needs to review the checklist items and decide which ones should be included in the budget. Mayor Adams asked for information about the checklist items and the Volume 54 - Page 346 INDEX Res 2001 -57 FY 2001 -2002 Budget Adoption (40) City of Newport Beach City Council Minutes June 26, 2001 INDEX resources available. City Manager Bludau stated that the supplemental budget totals $1,995,357 plus a rebudget of capital improvement projects totaling $4,476,023, bringing the total budget checklist to $6,471,380. City Manager Bludau pointed out the Environmental Nature Center, the film festival and the a/. -ton van for the Utilities items on the budget checklist. Administrative Services Director Danner noted that $33,760 should also be considered for the heating of the two school district swimming pools, as discussed at the Study Session earlier in the day. City Manager Bludau stated that when preparing the budget, not all of the money that is anticipated to be received is expended. Some money is always set aside for the City Council to add supplemental budget items. Mayor Adams asked for a review of the budget's airport - related allocations. City Manager Bludau stated that the airport expenditures are included in the City Council section of the Budget Detail. He stated that the budget appropriation for Airport Management totals $320,000, and added that $400,000 was also budgeted in the current fiscal year for Environmental Impact Report (EIR) studies related to the extension of the settlement agreement effort. City Manager Bludau stated that there is some flexibility if additional costs are incurred. Mayor Adams stated that there has been extensive deliberation on the budget. As a new council member, Council Member Bromberg asked how this year's budget process and amount compared with prior budgets. Administrative Services Director Danner stated that this year's proposed budget is very close in dollar amount to the prior year's proposed budget. Mayor Adams stated that a weekend workshop was held earlier in the year, with the City Council providing the direction that no new employees should be hired. He stated, however, that the new budget includes 14 new employees and each individual position was looked at by the City Council. Mayor Adams stated that after this review, he has been convinced that each position is necessary and is appropriate for the long -term. He stated that he expects that no new positions will be needed for quite some time. Council Member Glover stated that she also was not happy to see the 14 new positions in the proposed budget but after review, realized many of them were to upgrade part -time employees to full -time employees. She also did not expect to see as many new positions in the following year's budget. Mayor Pro Tem Ridgeway stated that the reason for the concern is for the future. He explained that the economy is expected to turn and the next twelve months could be very telling. He predicted that next year's budget would be much more difficult. Volume 54 - Page 347 City of Newport Beach City Council Minutes June 26, 2001 INDEX Mayor Adams stated that the revenue estimates are conservative and he is basing his decision on that assumption. City Manager Bludau stated that he understood the comments regarding new employees in the future. He added, however, that although some of the new positions are in anticipation of the annexation, the City will need additional employees to provide any new services, possibly beginning January 1, 2002. Council Member Bromberg asked about the funds being budgeted for an anticipated increase in energy costs. He added that he expected that reserves could be used if necessary. City Manager Bludau stated that some increases were added to the budget in anticipation of higher energy costs. He also challenged staff to watch the City's energy usage. Regarding the annexation, Council Member O'Neil recalled that the City will receive approximately $15 million from the Irvine Ranch Water District (IRWD), which he stated should help insulate the City from a possible downturn in the economy. Council Member Heffernan stated that the City is facing some unusual circumstances. He cited the expected downturn in the economy and the money that needs to be spent on airport issues. He stated that although more money should be saved and added to the reserves, he could support the budget due to the unusual circumstances facing the City. Motion by Council Member Glover to adopt Resolution No. 2001 -57 adopting the City's 2001 -02 Budget, to include all of the Budget Checklist items, as well as an additional item of $33,760 for pool heating. Greg Schwenk thanked the City Council and staff for their support of the film festival. Ann Truxaw, Executive Director of the Susan G. Komen Foundation, introduced Sally Molnar on the Board of Directors and announced that this year's Race for the Cure would take place on September 23, 2001, at Fashion Island. She stated that this is the tenth year that the race would be held in Newport Beach, and brings over 30,000 people into Newport Beach over the two -day event. Ms. Truxaw stated that the Race for the Cure is the largest community -based fundraising event held in Newport Beach. She requested that the City Council add a $10,000 item to the budget that would cover the cost to hire the Newport Beach Police Department. Council Member Glover stated that she is hesitant to give tax money to any organization because there are so many charities in the City and people have their own preferences. She did suggest that the possibility of the City picking up the cost of the Police services be looked at. Volume 54 - Page 348 City of Newport Beach City Council Minutes June 26, 2001 The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor O. MOTION FOR RECONSIDERATION - None. P. ADJOURNMENT - 10:10 p.m. The agenda for the Regular Meeting was posted on June 20, 2001, at 3:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on June 22, 2001, at 1:20 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 54 - Page 349 I IN 11