Loading...
HomeMy WebLinkAbout01 - 05-28-2002City Council Meeting June 11, 2002 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes DRgr+T Study Session May 28, 2002 - 4:00 p.m. INDEX Present: Heffernan, Bromberg, Glover, Mayor Ridgeway; O'Neil (arrived at 5:10 p.m.) Absent: Adams, Proctor (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan stated that he planned to ask for a continuance of Item No. 23, Main Street Ficus Tree Removals, at the evening meeting based upon the short notice that was given to the public and their inability to contact experts in time. He also requested that a copy of Council Policy G -1, Retention or Removal of City Trees, be provided to him prior to the meeting. 2. 2002 -03 BUDGET REVIEW. Using a PowerPoint presentation, City Manager Bludau displayed a list of fourteen funds included in the 2002.03 preliminary budget. He stated that there are an additional eight budgeted funds and several others that are non - budgeted. The general fund represents over 65% of the total dollars and also provides the greatest flexibility of any of the funds. City Manager Bludau stated that one of the funds not listed is the annexation fund, which is a fund set up from the payments received from the Irvine Ranch Water District (IRWD) to offset the Newport Coast assessments. Council Member Glover asked if the City's budget had been analyzed in conjunction with what is going on with the State budget. City Manager Bludau stated that it is too soon in the process since the State Legislature is just beginning to look at their alternatives. Administrative Services Director Danner added that the Vehicle License Fee (VLF), which totals $2.7 million, was not included in the revenue estimates, however. City Manager Bludau displayed the City's organizational chart. He then displayed a chart showing the total City revenue estimate of $149,722,799 for the 2002 -03 fiscal year and the amounts expected from the governmental, enterprise and internal services funds. Displaying a pie chart, City Manager Bludau noted that property taxes represent the largest revenue source to the City. Per Mayor Ridgeway's question, Administrative Services Director Danner clarified that the charts cover all revenue sources, and would be used for both the Capital Improvement Program (CIP) as well as the City's operating Volume 55 - Page 163 [No report] City of Newport Beach Study Session Minutes May 28, 2002 budget. Per Mayor Pro Tem Bromberg's question, Administrative Services Director Danner stated that the Transient Occupancy Tax (TOT) is included in the sales and other taxes revenue source category. City Manager Bludau stated that it is estimated that $95,497,721 will be received from general fund revenues, with the majority of it being from property and other taxes. Per Council Member Glover's question, City Manager Bludau stated that less than $20 million is expected from sales tax. Council Member Glover stated her concern for sales tax revenue decreasing in the future due to distribution changes by the State. INDEX Mayor Ridgeway added that the State Legislature has considered such changes in the past, but that he didn't feel that it would happen. City Manager Bludau agreed that many iterations of the concept have been discussed, but stated that the revenue estimates do not reflect the sales tax distribution changing. City Manager Bludau displayed another chart and stated that over 63% of the general fund revenue comes from secured property, sales and transient occupancy taxes. Administrative Services Director Danner noted that the 2% increase in the sales tax revenue is actually a 5% loss estimate with a 7% increase factored in for the additional sales tax revenue expected from the effects of the annexation of Newport Coast. Council Member Glover requested that she be provided with a comparison of the percentage of revenue received from sales tax for the cities in the County. City Manager Bludau stated that the general fund revenue estimates are conservative. He then displayed a bar chart that illustrated the top ten general fund revenues and a comparison of the 1999 -2000 fiscal year with the 2002.03 fiscal year. Mayor Ridgeway noted that VLF was still included. Administrative Services Director Danner explained that the estimate has been reduced from $4 million to $1.3 million, which eliminates the backfill that is expected to be taken away by the State. City Manager Bludau displayed a bar chart showing the top three revenue sources and a comparison of them over the past twelve years. He stated that it illustrates the downturn in property taxes when the Education Revenue Augmentation Fund (ERAF) became effective in the early 1990'x, and the fairly steady growth that has taken place since. He then displayed the same bar chart, but with an additional bar that illustrated what the property tax revenue would have been over the past twelve years without ERAF. City Manager Bludau stated that total expenditures budgeted from all funds for the 2002.03 fiscal year is $142,199,431, with a total operating budget for the City of $110,539,148 and a total CIP of $31,660,283. He additionally Volume 55 - Page 164 City of Newport Beach Study Session Minutes May 28, 2002 INDEX noted that the total operating budget, excluding enterprise and internal service funds, is $95,426,486 and includes general government, public safety, community development, public works and community services. He noted that public safety accounts for 53.13% of the total budget and public works, which includes general services, accounts for 21.85 %. Council Member Heffernan requested that a ten -year comparison of the proportion of public safety to the total budget be provided prior to the next Study Session. Council Member Glover confirmed that the operating budget does not include the CIP. City Manager Bludau displayed the expenditures estimated for the water and sewer enterprise funds, which were $18.7 million and $2.5 million, respectively. He stated that the totals for operating expenditures and the CIP illustrate how aggressive the City is in regard to water and sewer line replacements. City Manager Bludau displayed a pie chart showing expenditures by type. He noted that 51% of the total budget expenditures are for salaries and benefits, 24% for maintenance and operation, and 22% for capital improvements. Council Member Glover asked how much of the money budgeted for capital improvements would be used towards improving water quality. Assistant City Manager Kiff stated that $1.2 million would be spent on water quality. She asked about her request to have $5 million spent. City Manager Bludau stated that it was staffs understanding that this would be spent over a five -year period. Assistant City Manager Kiff noted that the $1.2 million would be used towards new endeavors. Per Council Member Heffernan's question, Assistant City Manager Kiff stated that the cover for the Big Canyon reservoir is budgeted in the water enterprise fund. Council Member Heffernan asked about the timing of installing the cover and the Federal funds that the City is attempting to receive. City Manager Bludau stated that the cover is one of staffs top priorities and although more attempts would be made to receive the funding, the cover needs to be installed as soon as possible. City Manager Bludau displayed a pie chart that showed expenditures by function and noted public safety at 41 %, public works at 17 %, enterprise at 12% and internal services at 9 %. He then displayed a bar graph showing the proposed expenditures by department for the 2002.03 fiscal year, compared to those proposed for the 2001 -02 fiscal year. He noted that the greatest change is in City Council, which showed a decrease for the upcoming fiscal year due to the decrease in airport expenditures. City Manager Bludau stated that the 2002 -03 budget is primarily status quo, with a few exceptions. He displayed a chart showing expenditures by function for the past six years, and pointed out that the greatest expenditures are for public safety and the decrease in general government is due to the decrease in airport expenditures. City Manager Bludau displayed a bar chart showing the general fund, and Volume 55 - Page 165 City of Newport Beach Study Session Minutes May 28, 2002 the stabilization and contingency reserve funds. He noted that Council Policy F -2, Reserves/Designations of Fund Balances, requires that 10% of the general fund be kept in the contingency reserve fund and 2% in the stabilization reserve fund. Council Member Glover suggested that the City write a letter to the State and request information on how the $40 million for ERAF was spent. Mayor Ridgeway stated that it was supposed to have been spent on education. INDEX City Manager Bludau displayed a slide showing expense items not included in the budget ceilings. He stated that these were expenditures that staff knew the City would have, but the amount was unknown. Administrative Services Director Danner added that estimates were made for these items and the appropriate funds have been set aside. He noted that the slide also showed expense items that have been included in the budget and the ceilings for each. City Manager Bludau stated that although he has characterized the budget as a status quo budget, there are some additional expenditures for the annexation of Newport Coast and for the items not included in the budget, which are primarily personnel type items. City Manager Bludau displayed a list of the supplemental budget requests by department, which totaled $1,053,716. He noted that $340,396 of the requests were approved, primarily for the Fire Department. Referring to the previous slide, Council Member Heffernan asked if the $3.9 million budgeted for annexation expenses included landscaping and a traffic signal for Sage Hill. Public Works Director Badum stated that the traffic signal project is currently unfunded. General Services Director Niederhaus stated that landscaping has also not been budgeted. Council Member Heffernan stated that Newport Coast residents want to know what landscaping services the City will be taking over. Assistant City Manager Kiff stated that the preannexation agreement is very specific about what will be paid for. City Manager Bludau admitted that the $3.9 million estimate is probably low. Per Mayor Pro Tern Bromberg's inquiry, City Manager Bludau stated that the issue of staffing in the Planning Department would be discussed later in the review. Mayor Ridgeway suggested that the discussion also include the fees that were increased the previous year to accommodate additional staffing in the Planning Department. City Manager Bludau displayed a list of the eight new full -time positions requested for the 2002 -03 fiscal year budget, and noted that only one has been approved. He explained that this was for a fire prevention specialist in the Fire Department and had already been postponed, but was needed due to the annexation of Newport Coast. He noted the two requested positions for the Planning Department and agreed that the department is understaffed. He stated that the idea of using fees to fund the additional Volume 55 - Page 166 City of Newport Beach Study Session Minutes May 26, 2002 �i `1�1�751:t positions would be discussed in more detail during the review of the Planning Department budget. Referring to the CIP, Council Member Glover asked how successful the City has been at keeping the roads maintained. Public Works Director Badum stated that the City is doing well. Council Member Glover asked the same question with regards to water pipes and the City's infrastructure. Public Works Director Badum stated that the City is in very good shape and has been following master plans for several years. He noted the minimal amount of problems that the City experiences. Council Member Glover asked how the City ranks in comparison to other cities and where more money could be spent. Public Works Director Badum stated that one area that the City is lacking in is City facilities and buildings. Council Member Glover stated that she is more concerned about the infrastructure and what affects the public directly. She stated that she doesn't want to see the City fall behind in maintaining its infrastructure. Public Works Director Badum stated that he is confident that the City is keeping up with such maintenance. Mayor Ridgeway confirmed with Public Works Director Badum that master plans exist for everything that the Public Works Department has jurisdiction over. Public Works Director Badum specifically listed water, sewer, street drainage, pavement management, bridges and piers. He stated that City facilities should also have a master plan. Council Member Heffernan asked if a master plan existed for the dredging of the lower bay. Mayor Ridgeway responded by stating that the City is very close to getting funds for the dredging and that it is an Army Corps of Engineers project expected for 2002 -03. City Manager Bludau stated that some cities fall behind in infrastructure maintenance because they don't increase water and sewer rates, which results in a lack of funds for adhering to a master plan. City Council In regards to the City Council budget, Assistant City Manager Kiff stated that there are no significant changes. He explained some of the individual line items. In regards to discretionary spending for each district, City Manager Bludau stated that some districts have more than $7,000 budgeted due to encumbered funds. Assistant City Manager Kiff additionally noted the airport management section of the City Council budget. Referring to special department expenses, it was noted that the various events are funded by approval of the City Council. Specifically, Mayor Ridgeway stated that the Film Festival will be required to present an economic report. Council Member Heffernan asked if the $500,000 budgeted for the airport was adequate. City Manager Bludau stated that it should be adequate for Volume 55 - Page 167 City of Newport Beach Study Session Minutes May 28, 2002 the upcoming fiscal year, but noted that it is only an estimate. Council Member Heffernan asked how potential liability in regards to the airport would be funded. City Manager Bludau stated that funding litigation prior to it happening would show an expectation that it will happen. City Clerk City Clerk Harkless stated that the City Clerk's budget has no significant changes for the 2002 -03 fiscal year. She stated that the main addition from the prior fiscal year is the $55,000 budgeted for election costs. She mentioned other minor changes. Specifically, she noted the increase in postage costs due to the processing of passports in the office. City Clerk Harkless noted that the City Clerk's office has processed 187 passports since the service began in February 2002, accounting for $2,800 in additional revenue. INDEX City Clerk Harkless stated that she did submit a supplemental budget request for an amount not to exceed $30,000 to hire a records management consultant to set up a records retention schedule for the City. She stated that this has not been done citywide for over thirty years. City Manager Bludau stated that it is needed, but he had more important supplemental requests that he approved instead. Per Mayor Ridgeway's question, City Clerk Harkless stated that not all City records are required to be kept permanently. The consultant would determine the schedule for when records could be destroyed. Council Member Glover asked if government code also specifies which records must be kept as hardcopy and which could be kept on disk. City Clerk Harkless stated that it does, and additionally noted that the Emergency Management Plan requires that each department provide the City Clerk with a list of their vital records. She stated that this would assist in disaster recovery, if needed, and that a records retention schedule would help the departments to meet this requirement. Council Member Glover asked if there was a central site for records storage. City Clerk Harkless stated that there is not, and that the City Clerk's office maintains the records of the City Council only. Per Mayor Ridgeway's question, Public Works Director Badum stated that the Public Works Department is currently scanning their plans and that the hardcopies on kept on site. City Clerk Harkless noted that the various storage sites throughout the City are in need of improvement. City Manager City Manager Bludau began the discussion of the City Manager's budget and noted that Assistant City Manager Kiffs salary is budgeted through both the utilities and general funds. Assistant City Manager Mff stated that there are no changes to personnel for the department in the upcoming fiscal year. He briefly mentioned a few individual line items, and noted that the City Manager's budget also includes the Harbor Resources Division. Volume 55 - Page 168 City of Newport Beach Study Session Minutes May 28, 2002 Per Council Member Heffernan's question, Administrative Services Director Danner stated that the debt service listed in the City Manager's allocation plan is for the State loan that the City received to redo the Balboa Yacht Basin. Assistant City Manager Kiff confirmed for Council Member Glover that the Resource Allocation Plan presents the totals from the budget detail, but in a friendlier format. Per Mayor Ridgeway's question, Assistant City Manager Kiff stated that the City Manager's budget includes the City Manager's office, the public information officer and the Harbor Resources Division, which includes tidelands administration, the yacht basin and parking. Council Member Heffernan asked why tidelands administration is included in the City Manager's budget. City Manager Bludau stated that it was moved there because the City's focus on water quality increased and there were many different aspects that needed coordination, including legislative activity involving the upper bay and management of the lower bay. Assistant City Manager Kiff added that dredging would be included as a water quality issue for the bay, but that the reservoir would be handled by the Utilities Department since it involves drinking water. Administrative Services Director Danner stated that the City Manager's budget totals $1.028 million. City Manager Bludau added that other water quality functions may be reorganized to insure that the City is responding to water quality issues. City Attorney City Attorney Burnham stated that the City Attorney's budget is unchanged from the previous year. Administrative Services Department Administrative Services Director Danner stated that the Administrative Services Department is comprised of five divisions, and includes resource management, fiscal services, management information services and the revenue division. He noted that there were three supplemental requests submitted for the revenue division, but that they were not approved. He stated that the requests included a new full -time employee to take on increased responsibilities with regard to income properties, but it was decided that it could also be handled by contract. Council Member Glover emphasized that when contracts are negotiated to outsource responsibilities, the business outcome must take priority over the personalities involved. \� Mayor Ridgeway stated that there are computer programs available that can help with property management. Council Member Heffernan stated that he thought that the Administrative Volume 55 - Page 169 City of Newport Beach Study Session Minutes May 28, 2002 Services Department was supposed to be overseeing and coordinating the revenues and expenditures of the City. Administrative Services Director Danner stated that a report discussing this issue should be finalized soon. Administrative Services Director Danner stated that the other supplemental requests for the revenue division were for a part -time employee and a database cross - reference system. He stated that the fifth division of the department is the accounting division and a supplemental budget request for a reclassification of an employee in the division was approved. He stated that this reclassification was the only substantial change to the department's budget. INDEX Mayor Ridgeway asked if a more detailed presentation would be made of the divisions in the department. City Manager Bludau stated that the City's budget is basically a flat budget with few changes, and that these changes would be brought to the City Council's attention as the presentations are made. City Manager Bludau stated that the budget detail breaks each division down in detail. Mayor Ridgeway stated that a specific concern of his is the conflict between the Planning Department, the revenue division and the City Attorney's office with regard to the charter boats in the bay and tidelands administration. City Manager Bludau stated that it is not included in the list of top priorities. Mayor Ridgeway stated that he would discuss the issue further with the City Attorney. Police Department Using a PowerPoint presentation, Police Chief McDonell stated that the Police Department budget for the 2002 -03 fiscal year totals $30.6 million, which is a 3.2% increase over the previous year. He stated that although there are no new employees being requested, the increase is contained in the salaries and benefits accounts due to negotiated agreements with the bargaining units and previously approved positions as a part of the annexation. He noted that 84.1% of the department's total budget is for salaries and benefits, and 68% is for field related services. Police Chief McDonell stated that two adjustments to the budget were approved by the City Manager in maintenance and operations. He stated that he did not get approval to increase funding for fuel costs, although the cost for gasoline has risen and is used for all of the rolling stock in the department's fleet. Police Chief McDonell stated that the department is using less electricity than it did in 1997, but the cost of electricity has increased. He noted the changes the department has made to reduce consumption by .07 %, but stated that there is still a projected 36% increase in total cost. He displayed a bar chart that illustrated the same point. Police Chief McDonell stated that the functions of the Chief of Police office include the operation of the professional standards unit, the Drug Abuse Resistance Education (D.A.R.E.) Program, environmental services, community relations, the volunteer program, crime prevention, and the citizen's and teen academies. He displayed and listed the many functions of Volume 55 - Page 170 City of Newport Beach Study Session Minutes May 28, 2002 i_ TOM. the support services, patrol, traffic and detective divisions. Police Chief McDonell stated that 84.1% of the total budget for the department is for salaries and benefits. He added that there are 238 full -time employees, with 149 being sworn personnel and 89 being non- sworn. He noted that the department has a higher percentage of civilian positions than most police departments, which reduces costs and liability. Council Member Heffernan noted that the cost of salaries and benefits for the department has increased at an average rate of 8% per year over the past four years. Police Chief McDonell stated that part of the reason for the increase has been due to the annexation of Newport Coast. Council Member Heffernan stated that he wasn't criticizing the department, but wanted to point out that maintaining the level of service that the City provides to the community does come at an expense. Police Chief McDonell stated that the department has accounted for approximately $3.8 million in revenue to the City since 1996 from grants awarded through the State and Federal competitive processes. He stated that specific competitive grants have included COPSMORE in both 1995 and 1998, an office of traffic safety grant in the 2001.02 fiscal year, a countywide regional Driving Under the Influence of Alcohol (DUI) taskforce grant, a DUI enforcement team/checkpoint grant, COPS universal hiring program grant, another COPSMORE grant in 2000, a California law enforcement technology equipment program grant, and a California Department of Justice criminal identification and information grant. Police Chief McDonell stated that non - competitive grants, which are also known as per capita grants, have accounted for approximately $503,000 in revenue and have included a local law enforcement block grant, a supplemental law enforcement services fund grant, a 2002 California Law Enforcement Equipment Program (CLEEP) grant and a 2002 California 9.1.1 emergency service system upgrade grant. Mayor Pro Tern Bromberg asked if the sixteen new positions for the 2002 -03 budget were for Newport Coast only, or if it included the Santa Ana Heights and Bay Knolls annexations as well. Police Chief McDonell stated that it would include all of the annexations, and consisted of ten sworn positions and six non -sworn positions. Council Member Glover stated that when looking at other cities on the internet, Newport Beach doesn't come across as being as crime free as other cities. Police Chief McDonell stated that the statistics are based on resident population and not tourist population, so it is difficult to draw a good comparison. Council Member Glover additionally noted the two recent homicides in the City and asked if this would also reflect poorly on Newport Beach. Police Chief McDonell stated that it would, even though the homicides were related to relationships and occurred within residences. Council Member Glover stated that Newport Beach is very crime free and the arrest statistics are related to summer activity. Police Chief McDonell agreed and stated that 40% of the arrests are alcohol - related. Volume 55 - Page 171 City of Newport Beach Study Session Minutes May 28, 2002 Mayor Ridgeway asked what percentage of calls for service come from Districts Nos. 1 and 2. Police Chief McDonell stated that he could find out, but does know that 40% of the department's arrests take place on the peninsula and in West Newport. Mayor Ridgeway recalled that the two districts accounted for close to 60% of calls for service. Police Chief McDonell confirmed that it is the highest demand area. Mayor Ridgeway additionally noted that the area has the highest number of bars per capita in the City. INDEX Mayor Ridgeway asked for an update on the status of the 800 MHz program. Police Chief McDonell stated that the City Manager could provide an update on the cost sharing issue, but he stated that the maintenance of the system is being handled in a cost effective manner and $20,000 has been budgeted for the maintenance of the radios. In response to Mayor Ridgeway's questions, Police Chief McDonell added that all of the cities in the County and the County are involved in the program. He stated that the system is working well, although a few additional repeater sites are needed and this is being worked on with the County. PUBLIC COMMENTS — None. ADJOURNMENT — 6:00 p.m. The agenda for the Study Session was posted on May 22, 2002, at 2:20 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 172 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting May 28, 2002 - 7:10 p.m. — 4:00 p.m INDEX CLOSED SESSION — 6:00 p.m A. RECESSED AND RECONVENED AT 7:10 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Absent: Adams, Proctor (excused) C. CLOSED SESSION REPORT —None. D. PLEDGE OF ALLEGIANCE E. INVOCATION — Bishop Peter Bendheim, Newport Beach Second Ward of the Church of Jesus Christ of Latter -Day Saints. F. PRESENTATIONS — None. G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): • Mayor Pro Tom Bromberg requested that an ordinance be brought before Council regarding prohibiting dogs on Balboa Island beaches. • Mayor Pro Tem Bromberg announced that the Relay for Life had about 1,000 participants, 38 teams, and raised about $70,000; all of which were records for a first time venue. • Mayor Pro Tem Bromberg announced that the Balboa Island Annual Parade will be held on Sunday, June 2, 2002, at 11:00 a.m. He stated that Balboa Island residents found ten New York Firefighters and their families lodging so that the firefighters could march and ride in the parade. • Council Member O'Neil announced that the 2101 Annual Corona del Mar 5K Race will be held on Saturday, June 1, 2002, at 8:00 a.m. • Council Member Heffernan requested that Council hold a hearing at either the next study session or regular meeting regarding the joint use Mariners library since the deadline to apply to the State is June 12. Council Member Glover reported that Council already has to take action on this issue at the next regular meeting during a public hearing. Council Member Heffernan requested that enough time be allotted for discussion and that the staff report include graphs, maps, drawings, etc. Volume 55 - Page 173 City of Newport Beach City Council Minutes May 28, 2002 I. CONSENT CALENDAR READING OF MINUTES(ORDINANCES AND RESOLUTIONS 1. Removed at the request of an audience member. 2. 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. Removed at the request of an audience member. 4. Removed at the request of an audience member. RESOLUTIONS FOR ADOPTION 5. RESOLUTION FIXING THE EMPLOYER'S PERS MEDICAL CONTRIBUTION FOR NEWPORT BEACH FIREFIGHTERS ASSOCIATION (contd. from 5/14/02). Adopt Resolution No. 2002 -34. 6. ARTERIAL HIGHWAY REHABILITATION PROGRAM. Adopt Resolution No. 2002 -35 approving the submittal of a funding application to the Orange County Transportation Authority for funding under the Arterial Highway Rehabilitation Program. Removed at the request of an audience member. CONTRACTS AND AGREEMENTS 8. MEMORANDUM OF UNDERSTANDING WITH FIREFIGHTERS ASSOCIATION (contd. from 5114/02). Approve Memorandum of Understanding (MOLT) between the City of Newport Beach and the Newport Beach Firefighters Association. 9. FORD ROAD PAVEMENT OVERLAY FROM SAN MIGUEL DRIVE TO WESTERLY LIMITS — AWARD OF CONTRACT (C- 3437). 1) Approve the plans and specifications; 2) award contract (C -3437) to R.J. Noble Company for the total bid price of $256,249.50 and authorize the Mayor and the City Clerk to execute the contract; 3) establish an amount of $25,600 to cover the cost of testing and unforeseen work; and 4) approve a budget amendment (BA -042) appropriating $60,949.50 from the unappropriated balance of the Measure M Turnback Fund to Account No. 7281- C5100587. 10. NEWPORT HEIGHTS /CLIFF HAVEN NEIGHBORHOOD TRAFFIC MANAGEMENT STUDY. Authorize staff to retain the services of a traffic engineering consultant to perform a Neighborhood Traffic Management Study of Newport Heights and Cliff Haven. 11. AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH MOORE IACOFANO GOLTSMAN, INC. FOR GENERAL PLAN VISIONING. Approve and authorize the City Manager to execute the agreement. Volume 55 - Page 174 INDEX Res 2002.341C -2060 PERS Medical (38/66) Res 2002 -35 Arterial Highway Rehabilitation (54/74) C -2060 Firefighters Assoc. MOU (38) C -3437 BA -042 Ford Road Pavement Overlay (38/40) C- 3532/Newport Heights /Cliff Haven/ Traffic Management Study (38) C -3410 General Plan Visioning (38) City of Newport Beach City Council Minutes May 28, 2002 12. CLEAN BEACHES INITIATIVE CONTRACT WITH THE STATE WATER RESOURCES CONTROL BOARD. Authorize the Mayor to execute the contract with the State Water Resources Control Board in the amount of $200,000 for projects under the Clean Beaches Initiative. MISCELLANEOUS ACTIONS 13. LEGAL PUBLICATIONS FOR ONE -YEAR CONTRACT COVERING FISCAL YEAR JULY 1, 2002 TO JUNE 30, 2003. Authorize the City Clerk to publish a notice advertising for bids to be received on or before the hour of 4:00 p.m., on Wednesday, June 12, 2002 for a one -year contract covering the publishing and printing of legal notices, or other material required to be published and circulated in the City of Newport Beach. 14. 2002 -03 PROPOSED BUDGET HEARING AND 2002 -03 APPROPRIATION LIMIT HEARING. Schedule a public hearing on the City's proposed budget and appropriation limit for the 2002 -03 fiscal year for June 11, 2002 at 7:00 p.m. and direct the City Clerk to publish a notice of said hearings. 15. APPROVE CHANGE ORDER FOR OASIS LIGHTING RETROFIT PROJECT. 1) Authorize the City Manager to approve Change Order No. 1 in the amount of $7,588.33 to TRI County Lighting Services, Inc.; and 2) authorize $3,000 for contingencies to cover any additional unforeseen conditions. 16. BUDGET AMENDMENT TO FUND REPLACEMENT BODIES FOR REFUSE COLLECTION TRUCKS. Approve a budget amendment (BA- 043) to transfer $83,900 into Account No. 6120 -9106 (Equipment Replacement - Equipment Renovation) from unappropriated Internal Service Fund reserves to fund the construction and installation of two new front loader bodies on City refuse collection trucks. 17. PURCHASE OF SEWER CLEANING TRUCK. Waive City competitive bidding guidelines and approve the single source purchase of a Vactor brand sewer cleaning truck from Haaker Equipment Company of Pomona at a total cost of $285,049.40 including tax. 18. Removed at the request of Mayor Ridgeway. S24. Removed at the request of Mayor Ridgeway. Motion by Council Member Glover to approve the Consent Calendar, except for those items removed (1, 3, 4, 7, 18 and S24). The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor J. ITEMS REMOVED FROM THE CONSENT CALENDAR MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF MAY 14, 2002. Volume 55 - Page 175 11411) WI C -3485 Clean Beaches Initiative (38) FY 2002 -2003 Legal Publications (32) 2002 -2003 Budget and Appropriations Limit Hearings (40) C -3533 Oasis Lighting Retrofit (38) BA -043 Replacement Bodies for Refuse Collection Trucks (40/44) Sewer Cleaning Truck (44) City of Newport Beach City Council Minutes May 28, 2002 Jim Hildreth requested that the minutes be reviewed to make sure his statements are correctly stated. Motion by Mayor Pro Tern Bromberg 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, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor 3. MODIFICATION TO SECTION 7.04.020 — DOGS ON BEACH/ OCEAN Motion by Council Member O'Neil to table the item. Tom Rossi, 1801 West Bay, asked for clarification about the motion. Mayor Ridgeway explained that tabling this means that no action will be taken and the ordinance will stand as it is currently written. Mr. Rossi asked that Council allow dogs on a small, designated area of the beach similar to Huntington Beach and other cities along the coast. Elaine Linhoff, 1760 East Ocean Boulevard, believed that it is unfair to prohibit dogs on the beach from 9:00 a.m. and 5:00 p.m. during the winter. Captain Henisey explained that a judge determined that the current language in the municipal code was vague. He indicated that the amended ordinance does not change the spirit of the law, but corrects the wording for future interpretations. City Attorney Burnham stated that the decision of the trial court judge has been appealed to the Superior .Court Appellate Department and added that the City will get some guidance from them relative to the interpretation of the ordinance. He confirmed that, until there is a final decision, people could continue to fight their citations. Captain Henisey added that the judge felt that, if the person was no longer standing on the sand and was swimming, they did not need to hold the dog's leash. He stated that the proposed amendment is an effort to include areas of the ocean and bay so that it was clear that the dogs would have to be on a leash and under the control of the owner. He indicated that the judge believed that, if the person was far into the water, it was irrelevant if they were holding the leash and the dog was loose. Council Member O'Neil indicated that he is reluctant to modify the code, pending the final decision of the court, because he does not understand the magnitude of the problem. Mayor Pro Tern Bromberg stated that the final decision will be instructive relative to how the law will be interpreted. He added that he has a concern about telling people that they are required to have their dog on a leash since it could be dangerous to the dog and the owner, especially if the owner cannot swim. He indicated that, rather than legislate the issue, it is best to let the court make the decision and then amend the ordinance after if needed. Council Member Heffernan stated that it is the City's law that is ambiguous and recommended that Council fix it. Volume 55 - Page 176 INDEX Dogs on Beaches /Ocean (70) City of Newport Beach City Council Minutes May 28, 2002 The motion carried by the following roll call vote: Ayes: O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: Heffernan Abstain: None Absent: Adams, Proctor 4. MODIFICATION TO SECTION 11.12.150 — SWIMMING REGULATIONS — DIVING OR JUMPING FROM PUBLIC PROPERTY. Jim Hildreth believed that, if City employees will be jumping off structures, it should only be done for reasons like saving someone's life. He indicated that he did not realize that jumping off seawalls was illegal and that this affects the southwest end of the Grand Canal. He added that he will be using this later to try to obtain access. He stated that he has seen people jump off the bridge and the wall. He believed that there should be a notation added that states that the City does not want people to jump off the wall because it is unsafe, rather than unlawful. He asked if this was a way to generate revenue from someone who is jumping into high tide when there is nothing underneath. Motion by Council Member O'Neil to introduce Ordinance No. 2002 -11 and pass to second reading on June 11, 2002. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor 7. RESOLUTION NO. 2002 -36 RELATING TO COSTA MESA - NEWPORT BEACH ISLAND ANNEXATIONS. Robert Hanley, 1601 Indus Street, West Santa Ana Heights, presented Council with a mock petition. He stated that this started in late 1999 and that they will persist because they hope to become one community and part of Newport Beach. He emphasized that they are adverse to splitting the community, especially in light of the airport situation. Mr. Hanley stated that they are also adverse to using redevelopment money for purposes that will not benefit everyone. Russell Niewiarowski, 20102 Kline Drive, Santa Ana Heights, stated that Santa Ana Heights has about $30 million in redevelopment money. He noted that its use has never been discussed and the residents have never voted on how the funds should be used. He indicated that someone has now determined that the community center should be purchased with redevelopment funds. He believed that the community center is being proposed in the wrong location and that it mostly benefits East Santa Ana Heights. He stated that he would support a community center that is better located to serve the whole community or have a discussion on how the redevelopment funds will be split if there is no annexation of the entire Santa Ana Heights area. He added that West Santa Ana Heights supports a fire station and would support the City taking redevelopment funds to prepare, construct, and operate it. He stated that he will be suggesting to the Board Volume 55 - Page 177 INDEX Ord 2002 -11 Diving or Jumping from Public Property (70) Res 2002.36 Santa Ana Heights Annexation (21) City of Newport Beach City Council Minutes May 28, 2002 of Supervisors that a study be conducted to convert the Newport Beach Golf Course into a County /City park, with a community center, fire station, library, and low -cost senior housing. City Manager Bludau reported that the $30 million does not belong to the Santa Ana Heights redevelopment district. He clarified that the County formed a redevelopment agency that consists of ten districts that have generated $30 million. He indicated that State law requires the County to adopt a redevelopment plan that shows what the needs are and why the redevelopment agency was formed. He sated that the County needs to determine if a fire station or community center fits within the plan. Motion by Council Member O'Neil to adopt Resolution No. 2002.36 stating that the City of Newport Beach: 1) agrees to amend its March 2001 annexation application to include the Emerson/Tustin neighborhood; 2) supports the Orange County Development Agency's assistance with the land acquisition and construction costs associated with a new fire station within Santa Ana Heights; 3) supports the Orange County Development Agency's purchase of a community center in Santa Ana Heights using redevelopment funds; and 4) agrees to participate in the maintenance and operations of the community center should the City succeed in annexing East Santa Ana Heights. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor 18. SUMMER -FALL 2002 WATER QUALITY TESTING CONTRACT: NEWPORT BAY AND TRIBUTARIES TO NEWPORT BAY. In response to Mayor Ridgeway's question, Assistant City Manager Kiff reported that the Orange County Health Care Agency is testing the bacteria to determine whether it reacts differently to antibiotics. He stated that, for the third summer, they will also be testing for the presence of human viruses in certain bay tributaries. Mayor Ridgeway reported that the City will be conducting significant vessel waste studies in the harbor at all the mooring areas. Motion by Council Member O'Neil to authorize the Mayor to execute a contract with the University of California in the amount of $166,920 using funds budgeted in the Capital Improvement program for this purpose (CIP Item #7251- C5100596). Jim Hildreth believed that pumping stations should be included in the study to ensure that they are not leaking and polluting the harbor. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor Volume 55 - Page 178 INDEX C -3483 Summer -Fall 2002 Water Quality Testing (38) City of Newport Beach City Council Minutes May 28, 2002 524. MARINE STUDIES CENTER (SHELLMAKER ISLAND) —ARCHITECT AGREEMENT. Assistant City Manager Kiff confirmed for Mayor Ridgeway that conducting geotechnical studies, and generating boundary and topography maps are within the $100,000 contract. Mayor Ridgeway stated that he does not agree with sole source contracts and that, in the future, this type of contract should be bid. Motion by Mayor Pro Tem Bromberg to authorize the City Manager to execute an Agreement with Ron Yeo, FAIR Architect, Inc. for work on the proposed Marine Studies Center. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor K. PUBLIC COMMENTS Robert Hanley, 1601 Indus Street, West Santa Ana Heights, announced that the 901" Bomb Group of World War II will be holding a reunion at the Hyatt Newporter on September 15, 2003, and requested that the City welcome these men and their families appropriately. Nancy Skinner reported that HR 3673 is a threat to the bay because, if passed, it would take away the State's no discharge harbor designation and change this designation nationally. She requested everyone's support and stated that she and her husband have written to Congressman Cox to get assistance in defeating the bill. She thanked Council for its previous support, noting that this is the same bill that Council looked at last year, and reported that the bill was reintroduced with a new number. She also asked the public to write their Congressman. Ms. Skinner explained that a no discharge designation deals with boats and their failure to have a holding tank when they have sewage onboard. She stated that the Federal Clean Water Act currently allows states to designate areas as no discharge to protect waters for swimmers and that this is an important tool to keep the bay clean for swimmers. She reported that the bill allows some discharge if the boat has a specific type of marine sanitation device (MSD) that macerates the sewage and conducts some disinfection. She expressed concern that the device will not disinfect pathogens. Ms. Skinner reported that the bill is being supported by Congressman Jim Saxton of New Jersey who believes that Raritan Engineering Company produces the type of MSD that could disinfect enough to lower the bacteria levels. She stated that Rhode Island designated a no discharge zone in the ocean and, since some boaters expressed concern, Raritan is working with Congressman Saxton to change the designation. She emphasized that changing this would change it for everyone. Mayor Ridgeway reported that the Coastal Coalition was given this information at its meeting last Thursday. He emphasized that the economics of coastal cities relies on clean water. Ms. Skinner added that, since this is a Federal law, it preempts the City's right to do anything in the harbor. Volume 55 - Page 179 INDEX C -3481 Marine Studies Center/ Shellmaker Island (38) City of Newport Beach City Council Minutes May 28, 2002 INDEX Jerry Russell, 1251 Santiago, stated that his child is a student at Mariners Elementary School and believed that there are a number of drawbacks about building a new library at Mariners Park. He expressed concern with the encroachment of the existing park since space is already limited. He stated that, although preliminary planning indicates that the park facilities will remain, he feels that they may be threatened when the designs are finalized. He added that the character of the park may also change from being the focus of the community to having people come to the park from far places which would make the park no longer suitable for community events. He stated that the neighborhood has not experienced a significant population growth in 30 years and does not feel a need to triple the size of the library. He requested that Council reconsider their support of the project. Gay Wassall- Kelly, 409 East Edgewater, reported that the roads around Balboa Village are open, the sidewalks are sparkling, the parking lots were open during the Memorial Day weekend, and the pier is complete. She indicated that she drove by the Village, saw patrons in the restaurants and shops, and merchants cleaning the new sidewalks. She stated that people are taking pride in what is happening in the Village. She announced that the Salute to Summer will take place June 21, 2002. Tom Duffy, 2021 Holiday Road, stated that several research papers from reputable universities conclude that combining school and public libraries in the same building is not generally recommended except in remote rural areas with populations of less than 5,000, and where a community was lacking a school library, a public library, or both. Further, California Department of Education School Library Consultant Barbara Jeffuss states that the joint use model is usually used at the high school level and that she has not seen a successful one yet in California. He reported that Minnesota, Iowa, and Wisconsin have built joint use libraries, but these states now have official policies against it. He stated that the Board of Library Trustees listed a county in Nevada as an example of a successful combined public /school library; however, the libraries located on elementary or middle schools are closed to the public during school hours. He suggested that the existing school library remain open and make arrangements for a cooperative use with the new Mariners Branch Library. He explained that Proposition 14 states that joint use projects where a school district has a cooperative agreement will be given priority. He noted that joint use is not defined as combining a school and public library in the same facility. He also suggested that the children's section of the library be closed during school hours and only available to Mariners Elementary School. Jim Hildreth, 120 The Grand Canal, stated that he was told at the last meeting that there was a possibility of punitive action against J.M. Hildreth because of his actions. He noted that a letter was presented to Council at the last meeting. He believed that he was catching fire for public speaking and reviewed the history of his family. He indicated that he has learned a great deal about City politics and civil law from his interaction with Council. Aaron Israel, 2104 Fuentes, Youth Council, reported that the Youth Council sponsored Challenge Day at the Oasis Senior Center and believed that it benefited all the attendees. He encouraged everyone to attend next year. He also announced that the Corona del Mar 5K Race will be held on Saturday, June 1 and encouraged everyone to attend. Volume 55 - Page 180 City of Newport Beach City Council Minutes May 28, 2002 INDEX Gregg Schwenk, 4540 Campus Drive, Newport Beach Film Festival, stated that a report will be sent to Council in about 1% weeks. He thanked Council for their continued support of the Festival and reported that 2002 was a challenging year but they were still able to expand the Festival. He listed the major sponsors and reported that the City is the largest cash sponsor to the Festival. Karen McClory believed that there are safety issues with the joint use library and reported that on May 1, 1998, three ninth graders leaving the public library assaulted several school children. She stated that parents have told her that, while doing yard work, they have retrieved children from the park or separated children from unidentified adults that entered from the park. She indicated that there are many similar stories but they rarely get documented or published. She added that many of the safeguards, like the buddy system, are no longer used, and pointed out that there is no fencing around the school. Ms. McClory believed that the school has a better selection of books than the public library right now because people have donated books in children's and families' names. She believed that they should not have to give this up for a new library and that this does not benefit the school children. Russell Niewiarowski, 20102 Kline Drive, Santa Ana Heights, stated that he represents the New Millennium Group who has been trying to secure an airport at El Toro for four years. He agreed that there is a demand and indicated that they are looking at other options in case E1 Toro does not happen. He stated that they will offer comparative analyses of what would happen if John Wayne Airport (JWA) is utilized to its maximum capabilities, reporting that San Diego International Airport has about the same amount of acreage, one runway, and a curfew to handle 14 million annual passengers. Linda Duffy, 2021 Holiday Road, stated that she spoke with California Department of Education School Library Consultant Barbara Jeffuss today who confirmed that Proposition 14 does not require co- location of school and public libraries. She presented Council with a chart she received from Library Grant Board Member Robert Hall that shows that priority goes to joint use libraries which could either be co- located or joint venture libraries. He added that there is no priority for co- located libraries over joint venture libraries. She indicated that City officials have said that they are not aware of research that shows that joint use libraries are not recommended; however, Ms. Jeffus stated that there are volumes of research against co- locating libraries. Ms. Duffy reported that there is also a risk that the School Board may lose Proposition 98 money for books if the school library is closed and relocated on a public site. Laura Forbes, 1621 Warwick Lane, believed that it will not be adequate for a member of the public to simply check -in before they use the part of the library that is supposed to be dedicated to school children. She indicated that the fears are not alarmist fears, but have been recognized by the legislature in Penal Code Section 627 and California Constitution Article 1, Section 28. She stated that she is preparing a letter to the School Board and will send copies to Council. Angela Albus, 2030 Holiday Road, believed that sharing the children's section of the library with the public is not a good idea during school hours and expressed concerns about how this would work. She reiterated that there are many studies that report that this is not recommended in elementary schools Volume 55 - Page 181 City of Newport Beach City Council Minutes May 28, 2002 and encouraged others to study joint use public libraries. She stated that, pursuant to Proposition 14 and the Library Bond Act of 2000, joint use is defined as a co- located or joint venture library, and reported that a joint venture library only requires a cooperative agreement. She indicated that, if the City wants to build a new public library, that the children's section be closed to the general public during school hours and only allow the necessary librarians, personnel, and parent helpers in the children's section. Mayor Ridgeway stated that these comments should also be taken to the Newport -Mesa Unified School District School Board since they would control the working hours of this library. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Glover announced that she chairs the John Wayne Airport (JWA) Settlement Agreement Committee and that Council Members O'Neil and Proctor also serve on the Committee. She reported that the agreement will be taken to the Board of Supervisors on June 25, 2002. She noted that once the Board, the Airport Working Group (AWG), Stop Polluting Our Newport (SPON), and the City sign the agreement, it will be taken to Washington to get some concurrence from the Federal Aviation Administration (FAA) and the Air Transport Association (ATA). She indicated that the Committee believes this will be protection for the City from a JWA expansion. She stated that the Committee appreciates Council's support and stated that its professional approach has helped take this agreement this far. Council Member Heffernan stated that he serves on the Newport Coast Advisory Committee and that they are working through annexation issues. He announced that the Committee meets monthly and that he, Assistant City Manager Kiff, and Administrative Services staff attend the meetings. City Manager Bludau announced that Council began fiscal year 2002 -2003 budget deliberations today. He stated that this will continue at the June 11, 2002, study session. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 19. PLANNING COMMISSION AGENDA FOR MAY 23, 2002. Planning Director Temple reported that one of the items was continued, the other was removed because the applicant withdrew the application, and the third was denied. She stated that the use permit was for an EZ Lube on the former Shell station site in Corona del Mar. She indicated that the Planning Commission felt that a strict automotive use was not consistent with the pedestrian- orientation of the commercial district and the goals of the Vision 2004 Plan which places an emphasis on pedestrian improvements in the public right -of -way of Coast Highway. She reported that the vote was 4 -1, with two Commissioners absent. In response to Council Member Glover's question, Public Works Director Badum reported that Transportation/Development Services Manager Edmonston attends Planning Commission meetings. Volume 55 - Page 182 INDEX Planning (68) City of Newport Beach City Council Minutes May 28, 2002 Q1 A PUBLIC HEARING 20. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISES TO ROCHE EXCAVATING, INC. Mayor Ridgeway opened the public hearing. Hearing no public testimony, he closed the public hearing. Motion by Mayor Pro Tem Bromberg to adopt Ordinance No. 2002.10 granting a Non - exclusive Solid Waste Franchise to Roche Excavating, Inc. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor 21. APPEAL OF A STAFF DENIAL FOR STRUCTURAL ENCROACHMENTS WITHIN THE PUBLIC RIGHT -OF -WAY ADJACENT TO 2100 W. OCEAN FRONT (N2002 -0035) (contd. from 3126102 & 5/14/02). Public Works Director Badum stated that the current owner of the 21 Oceanfront Restaurant is proposing to construct a six to ten foot high barrier which exceeds Council Policy L -21's 42 -inch maximum. Further, the policy requires that the ornamental work be somewhat transparent and that the barrier that will be placed in the public right -of -way be easily removable. He reported that the proposed structure has elaborate ornamentation, does not appear to be easily removable, and blocks public views. He noted that other sidewalk installations, like Rockin' Baja Lobster and Cafe Il Faro, enjoy the same views but the proposed structure restricts ocean views. He stated that their main concern was that this proposal would take a portion of public right -of -way and make it somewhat private. He indicated that they are recommending denial; however, if Council chooses to approve the permit with conditions, staff requested that a determination be made by the Coastal Commission. Further, he requested that the barrier be redesigned so it is easily removable and, when removed, does not impede the walking surface. In response to Council Member Glover's question, City Attorney Burnham stated that Council does not need to find certain conditions if Council overturns the denial. Council Member Glover believed that Greenlight is actually hurting the City with regard to big development. She noted that there are places in the City that need an infusion of money for improvements and that it is fortunate that there are residents willing to come into areas that need upgrading and are willing to fund it. She stated that the restaurant owner, Levon Gugasian, also upgraded and owns the Blue Water Grill and built a new building for West Marine on Coast Highway to keep the business in the City. She believed that it is unfortunate that staff has not found a way to make this work since improving older areas can make such a difference. Motion by Council Member Glover to overturn the denial. Volume 55 - Page 183 INDEX Ord 2002 -10 Non - exclusive Solid Waste Collection Franchise/ Roche Excavating (42) EPN2002 -0035 Structural Encroachments/ 2100 W. Ocean Front (65) City of Newport Beach City Council Minutes May 28, 2002 INDEX Mayor Pro Tom Bromberg stated that he met with Mr. Gugasian and toured the facility. He agreed that the area needs upgrading and noted that Mr. Gugasian has put a lot of money into the facility and throughout the City to better the community. He stated that he recognizes the concerns of the Public Works Director and believed that some conditions should be included in the motion. Council Member Heffernan stated that the proposal is not just for beautification, but is an expansion of a commercial activity on City property for free. Mr. Burnham indicated that the City has approved more than ten outdoor dining permits and that the policy encourages the vitality and economic feasibility of restaurants, and authorizes outdoor dining in public right -of -ways. Council Member O'Neil stated that Mr. Gugasian is a longtime resident and his projects have always been first class. He indicated that he needs to install a wind barrier to make the outdoor dining more workable. He believed that this should not be referred to the Coastal Commission and stated that he is unsure how the barrier can be made portable. Mayor Pro Tem Bromberg believed that the barrier could be more transparent and be only six feet rather than ten feet tall. Council Member Glover amended the motion to approve the application with conditions subject to the following: A. Execution of an Encroachment Agreement for non - standard improvements with findings and conditions. i. Authorized the Mayor and the City Clerk to execute the Agreement. ii. Authorized and directed the City Clerk to have the Agreement recorded with the Orange County Recorder. B. An Encroachment Permit issued by the Public Works Department. C. Revised the applicant's current Annual Outside Dining Encroachment Permit (DEP97.03) to include the 6 -foot, transparent structure enclosure. Council Member O'Neil stated that he understands why staff denied the encroachment since this motion is in direct violation of Policy L -21. However, since it is a Council policy, Council has the right to deviate from it but staff should not. Mayor Pro Tern Bromberg added that Council sets the policies and staff follows them, and that it is Council's decision whether to modify it. He commended staff for the staff report. Council Member Glover stated that staff works in City Hall and explained that elected officials look at something and make judgments that they feel are in the best interest of the community. She indicated that the heat should be placed on Council, not staff. Dr. Jan Vandersloot, 2221 E, 26th Street, stated that he has not looked at the project and does not know if it merits a variance from the policy, but complimented staff for sticking to the policy. He believed that Council has had problems with following its policies, including General Plan Amendments, and that this led to the Greenlight Initiative. He indicated that he mentions this because Item No. 23 (Main Street Ficus Tree Removal) deals with whether Council retains and abides by its policy. Volume 55 - Page 184 City of Newport Beach City Council Minutes May 28, 2002 INDEX Mayor Pro Tern Bromberg stated that part of the problem in the City is that people look at situations as either black or white. He emphasized that Council tries to think outside the box and sometimes has to do things differently to still be within the intent of the policy. Mayor Ridgeway stated that Mr. Gugasian has credibility and has done only quality work and, because of this, Council is looking at overturning the denial for the good of the community. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor 22. MARINAPARK LEASES. Assistant City Manager Kiff stated that an appraisal of the fair market rental value was conducted by William Hansen on March 12, 2002, and noted that he is the appraiser that was recommended by the tenants. Council Member Heffernan stated that Section 2 does not allow hold - overs, but pointed out that it still gives tenants 60 -days to remove their coach after the end of the term. He suggested that this be amended to indicate that residential use is prohibited during the 60 -days and only permits the removal of the coach. Regarding the tidelands designation, City Attorney Burnham stated that the City has not received this opinion yet from Mr. Fossum. Council Member Heffernan referenced the lease, noting that the City has determined that a non - residential use is an appropriate use. Mr. Burnham confirmed that the current General Plan designation does not authorize a residential use and, if the area was designated tidelands, residential use would also be inconsistent. He confirmed that the City has entered into an exclusive right to negotiate an agreement with Mr. Sutherland for a hotel use. He pointed out that this will only occur if a number of conditions are satisfied. He noted that the agreement is currently outstanding. Motion by Council Member O'Neil to 1) approve the 2 "d Amendment and Extension of Lease for the tenants at Marinapark and authorize the City Manager to execute individual documents on behalf of the City; 2) maintain rent at the current level until September 1, 2002; 3) authorize the City Manager or his designee to issue a 90 -day Notice to Increase Rent based on the April 4, 2002 Appraisal of Fair Market Rental Value offered by Mr. William Hansen; 4) authorize the City Manager to increase rent after the 90 -day Notice to the amounts set forth by the Appraisal; 5) authorize the City Manager to, at any time during the Lease, apply a rent adjustment (increase) factor upon the sale of any home of 1.5x (for As and Bs) and 1.3x (for Cs, Ds, and Es); and 6) include a condition prohibiting residents from occupying the units during the transition period to prevent hold - overs. Council Member Heffernan requested and received confirmation that the term of the lease dates back to the end of the current leases (March 15, 2002) so there is a continuous term for the leases. Volume 55 - Page 185 C -1784 Marinapark Leases (38/73) City of Newport Beach City Council Minutes May 28, 2002 The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Mayor Ridgeway Noes: None Abstain: None Absent: Adams, Proctor 28. MAIN STREET FICUS TREE REMOVALS. Motion by Council Member Heffernan to continue this issue. Council Member Heffernan stated that he was informed that people did not receive appropriate notification, were unable to attend tonight's meeting, and were unable to have their experts attend tonight. In response to Mayor Pro Tom Bromberg's question, Mayor Ridgeway stated that this issue was discussed at the Promote the Revitalization of the Peninsula (PROP) meeting. City Manager Bludau added that the tree issue was also discussed during the Balboa Village Revitalization Phase I review. Mayor Pro Tem Bromberg stated that he was contacted to support a motion for continuation and said he would do this if he did not feel there had been a fair hearing or if Council did not have the opportunity to look at all of the evidence. He indicated that he reviewed both of the arborist reports and believed that there is enough information to move forward tonight. The motion died for lack of a second. General Services Director Niederhaus introduced Public Works Engineer Bob Stein and Urban Forester John Conway. He reviewed the recommendation and reported that the Coral Gum tree was selected after studying over 90 species of trees to determine which would be the ideal tree that would not cause hardscape damage, would fit into the treescape, would not obstruct the view of the Pavilion, and would be a friendly tree. He stated that the excavations have revealed Ficus tree roots extending up to 100 feet and, in some cases, the root is bigger than the tree trunk. He believed that they will find large Ficus tree roots in all directions when Main Street is excavated. He indicated that removing the trees will allow them to remove the roots and repair the damaged utilities. Mr. Niederhaus believed that Council Policy G- 1 has been followed and reported that Mr. Conway completed tree reports on the 25 Ficus trees and an independent study was also conducted by Integrated Urban Foresters(IUF). Regarding notification, Mr. Niederhaus reported that all the trees were posted on April 4. He stated that the postings were stapled eight feet high so the signs could not be pulled down. He indicated that people on their interested parties list were also notified. He added that the Balboa Merchants' and Owners' Association (BMOA), Balboa Peninsula Point Association, and the Central Newport Community Association have been included in the process and have all voted to remove the Ficus trees. Mr. Niederhaus stated that a number of Eucalyptus trees were removed on Balboa Boulevard and were replaced with Peppermint Gum trees which are the designated street tree. He reported that some of the trees were planted before the masonry work was finished and some are less than optimum Volume 55 - Page 186 INDEX Main Street Ficus Tree Removals (62) City of Newport Beach City Council Minutes May 28, 2002 INDEX height. He stated that none of the trees are dead but have undergone stress from being in a major construction zone for over 60 days. He reported that six of the trees will be replaced this week. Mr. Niederhaus reported that Phase I will be completed shortly and the celebration will take place on June 21. He stated that Phase II will begin in the Fall and that the Ficus trees will be removed at this time and be replaced after all construction has been completed. He stated that two mature Coral Gum trees have been on display near the City Hall flag pole for the past three weeks. He reported that the City has the opportunity to replace the trees with the new treescape which compliments the upgraded Lithocrete. He stated that, if they root pruned the Ficus trees, the expensive hardscape would be torn up at least once a year for the next four years. Further, this does not avoid the problem of private sewers being invaded by roots. Mr. Niederhaus stated that staff and the Parks, Beaches & Recreation Commission (PB &R) are recommending that Council approve the removal and replacement of the Ficus trees. In response to Council Member Heffernan's questions, Mr. Neiderhaus reported that there have been two claims paid out in the last five years regarding Main Street Ficus trees that have totaled less than $5,000. He confirmed that the trees are valued at $192,000, and 10 of the 25 trees are designated landmark trees (Special Trees). Council Member Heffernan stated that the policy for Special Trees requires the City to look at a treatment prior to removal unless it is an emergency. He indicated that it sounds as if the hardscape issue is driving the removal of the trees because of potential future damage. Mr. Niederhaus stated that no treatment was ever conducted on the trees, adding that the area in North Main Street was redone but no root pruning or root barriers occurred. He indicated that Public Works conducted a study on what the potential damage would be, reporting that between $300,000 and $1.2 million of damage may be done if the trees are retained even if root pruning or root barriers are used. He confirmed that the trees are 40 years old. He stated that, even though the amount of the paid claims is about $5,000, business owners and residents know they are responsible for sewer stoppages and are paying thousands of dollars a year to clear the lines. Jim Whitehead, 332 L Street, believed that the trees should be removed because they will interfere with the other improvements being made on Balboa Boulevard. Dr. Jan Vandersloot, 2221 East 16th Street, stated that he is representing the Stop Polluting Our Newport (SPON) Tree Committee. He requested that Council uphold the G -1 policy and reviewed the Special Tree section. He emphasized that nothing has been done to retain these trees. He noted that, since the hardscape has been replaced on North Main Street, no property damage has occurred. He presented a survey which states that 14 of 21 business owners have had no plumbing problems. He suggested looking at the trees individually. He encouraged Council to apply California Environmental Quality Act (CEQA) reasoning and discussed appealing this to the Coastal Commission. He took issue with the notification process and stated that the 150 people who signed the petition to retain the trees were not notified. Cyndi Doran, 425 Seville Avenue, presented Council with photos of the new trees on Balboa Boulevard and requested that the Ficus trees remain on Volume 55 - Page 187 City of Newport Beach City Council Minutes May 28, 2002 Piz YT�►:1 Main Street and that the City hardscape or landscape around them. She expressed concern that everyone was not notified about the meeting since it is being held after a holiday. She hoped that the meeting would be rescheduled. She stated that the Balboa Boulevard trees have no color and look like they are dying, believing that this could happen to the Coral Gum trees. She expressed the opinion that the Ficus trees are gorgeous. Jim Hildreth stated that he promised he would speak on this for the Shaw family. He indicated that the Ficus tree is evasive and can cause problems, but all trees will do this. He stated that the City should try to keep the trees if they are Special Trees and the neighbors like them. He suggested that the City assist the businesses who are having plumbing problems. He noted that the hardscape has been replaced and believed it would take years before the trees raise it enough to trip anyone. Cheryll McDowell, 1537 E. Ocean Boulevard, referenced the Public Works report and noted that it states that any tree will eventually have to contend with the existing sewer lines and that all the trees should have at least a 4x6 planter space. She pointed out that all the Balboa Boulevard trees only have 3x3 wells. She requested that the ambiance be considered and that not all the Ficus trees be removed. Gus Chabre, President of the Balboa Peninsula Point Association, stated that the Association voted to remove the trees on two occasions. He requested that the City move forward with its plans for Main Street. Kay Mortenson, 1530 Miramar Drive, stated that she is on the Peninsula Point Association Board and is the liaison to PB &R. She indicated that the Board supports the removal of the trees and requested that Council uphold PB &R's recommendations. She reported that the revitalization plan can move forward once the trees are removed and stated that the Main Street plan is a beautiful, urban design that matches the rest of Balboa Village. She indicated that this plan would be aborted if the trees remain and believed that pruning and barriers are a temporary fix. Cindy Morris stated that the most charming thing about Balboa Village is the tree canopy and believed that it would be a disservice to remove them. She indicated that the blooms from the Coral Gum would create more claims and suggested laying the pavers in sand, not stone, in order to be able to cut the roots if they are lifting the hardscape. Elaine Linhoff, 1760 E. Ocean Boulevard, believed it would be a mistake to remove the trees since no one knows what Coral Gum will do. She stated that Coral Gum will only be 20 feet tall and will never provide a canopy. She noted that the City does not have a good record with planting new street trees and emphasized that root pruning or root barriers has never been tried. She suggested that the City look at other types of hardscape since the street will inevitably be worked on and so it could accommodate root pruning. Ms. Linhoff noted that IUF's final conclusion was to retain the trees. She concluded by stating that the members at the Point Association's last meeting voted to save the trees. Gay Wassall- Kelly, 409 East Edgewater, stated that the BMOA conducted a survey and found that more merchants have been impacted by the trees than a previous report had indicated. She noted that more sewer damage had occurred and that the merchants paid for the repairs themselves. She Volume 55 - Page 188 City of Newport Beach City Council Minutes May 28, 2002 INDEX displayed a root that had traveled over 125 feet. She reiterated that the organizations voted to remove the trees and emphasized that this is a critical time in the Village's revitalization. She requested that Council listen to the people who are affected by the trees. Nancy Skinner suggested speaking with a third arborist if two arborists are saying different things. She believed that it would be to the business owner's advantage to keep the tall, mature trees since they will not block the business names. Virginia Herberts reported that only BMOA board members were allowed to vote on this issue. Further, of the 20 to 25 Point Association votes against keeping the trees, 19 were done by phone. She noted that PB &R's vote was only 4 to 3 to remove the trees and emphasized that 150 residents signed a petition to keep the trees. She stated that the project architect, Ron Baers, has three of the largest Ficus trees on the Peninsula and suggested asking him how he manages them. She also suggested integrating pavers with the Lithocrete to accommodate the trees, and only remove the trees that are causing problems. Christie Wood, 2046 Seville Avenue, stated that she has worked in two Main Street properties and never experienced plumbing problems related to trees. She believed that the trees do not block the view of the Pavilion, but frames it; however, the Coral Gum trees will block the views and signage. She noted that the sidewalks that were installed in 1996 are showing no signs of root damage. She stated that there is no need to remove all of the trees and leave Balboa Village with no mature shade trees. Mark Wood believed that the Pavilion and Balboa Pier are being showcased in tree tunnels. He stated that Shore House Cafe has photos of the Village in 1950 and that it was not too attractive when it was stark. He believed that the trees and the old buildings will make people want to visit. Bill Kelly, 409 E. Edgewater, stated that people should think about what is occurring underground. He indicated that the City is spending a lot of time and money on the Village in hopes of revitalizing the area and believed that missing this opportunity to remove the trees would be a mistake. He requested that PB &R's recommendation be upheld. Mayor Pro Tem Bromberg agreed that the trees are gorgeous; however, when trees mature, it causes more damage. He stated that root pruning and root barriers are temporary and cannot be kept up because there will be nothing left of the tree. He reported that this issue has been heard four times and that the same people show up to the meetings. He stated that he has seen overwhelming community support to remove the trees and that he has not heard that the vote was close until 15 minutes ago. Council Member Heffernan expressed concern that, if something is taken out that is 45 years old, it can never be replaced. He believed that, if this is going to happen, the City should look at all of its property damage claims regarding Ficus trees. Mayor Ridgeway stated that he has worked on the Balboa Village Plan for 3% years and emphasized that this is being done to regenerate the economy and vitality of a neighborhood that has died. He asked how long the City can continue to let this area die without doing anything. He believed that Ficus Volume 55 - Page 189 City of Newport Beach City Council Minutes May 28, 2002 trees are beautiful, but these trees are in the wrong area. He reported that, if the trees stay, the $80,000 Main Street plans will not move forward. He stated that construction needs to commence by September 15, 2002, and be done by June 2003, pursuant to the California Coastal Permit. He believed that this is in the best interest of the City. Motion by Mayor Ridgeway to 1) uphold the Parks, Beaches and Recreation Commission recommendation to remove ten (10) Ficus nitida trees on Main Street that are designated Special/Landmark trees; 2) uphold the Parks, Beaches and Recreation Commission recommendation to remove 15 Ficus nitida trees on Main Street that are designated as "All Other Trees "; and 3) uphold the Parks, Beaches and Recreation Commission recommendation to plant 32 Coral Gum replacement trees on Main Street. Council Member Heffernan stated that the City should have a Ficus tree policy to deal with the claims and to be consistent. Council Member Glover noted that most of the claims occurred in her district. She expressed the opinion that removing residential trees hurts property values. She stated that some areas have ocean views while others have tree views, and that the City needs to protect trees in residential areas. She indicated that this is probably a business decision tonight. The motion carried by the following roll call vote: Ayes: O'Neil, Bromberg, Adams, Proctor, Mayor Ridgeway Noes: Heffernan, Glover Abstain: None Absent: None Q. MOTION FOR RECONSIDERATION — None. R. ADJOURNMENT — at 10:20 p.m. in memory of Nita Winchell Piere. The agenda for the Regular Meeting was posted on May 22, 2002, at 2:20 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 May 24, 2002, at 2:30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 190 INDEX