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HomeMy WebLinkAbout01 - 07-09-2002City Council Meeting July 23, 2002 Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session —OIL c July 9, 2002 - 4:10 p.m. O�'7/" r INDEX ROLL CALL Present: Heffernan, Bromberg, (arrived at 4:12 p.m.) Absent: O'Neil (excused) CURRENT BUSINESS Adams, Proctor, Mayor Ridgeway; Glover CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan requested that Assistant City Manager Kiff be present at the regular meeting during Item No. 7, Summer -Fall 2002 Water Quality Testing Contract: Vessel Waste Discharge Study. He additionally requested that Risk Manager Farley be present for the discussion of Item Nos. 8 & 9, General Liability Excess Insurance Renewal and Property Insurance Renewal. 2. REVIEW OF CITY PROPERTY LIABILITY INSURANCE COVERAGES AND COSTS FOR FY 02-03 (REFER TO COUNCIL AGENDA ITEM NOS. 8 AND 9 FOR STAFF REPORTS). City Manager Bludau stated that the premium for option 2 of the general liability excess insurance renewal for Item No. 8 in the staff report should be corrected to read $830,532. City Manager Bludau noted that although liability and property insurance were discussed during the recent budget review, the numbers have since been confirmed and staff wanted to make the City Council aware of its options. Risk Manager Farley stated that the insurance market place has changed drastically during the past year. She stated that the change has been due to a hardening of the insurance market, loss of excess insurance from re- insurers, loss of investments, and the September 11, 2001 incident. Risk Manager Farley stated that staff is recommending that the Self Insured Retention (SIR) for general liability be maintained at $500,000. Mayor Ridgeway confirmed with Risk Manager Farley that the City's excess general liability insurance coverage for 2001 -02 was $25 million at an annual premium cost of $331,000, and the premium for 2002 -03 is proposed to be $944,107 for a $21 million coverage limit. He additionally confirmed that the premium for property insurance for 2001 -02 was $399,796 and is proposed to be $636,239 in 2002 -03. City Manager Bludau pointed out that the $500,000 SIR for general liability is per incident. Per Council Member Heffernan's question, Risk Manager Farley stated that it is the 2001 -02 insurance that would cover any claims related to the Veches Volume 55 - Page 255 [No report] City of Newport Beach Study Session Minutes July 9, 2002 INDEX case and that it would be applied per occurrence. Council Member Heffernan summarized by stating that the $500,000 would apply per occurrence, the $25 million would be used on an aggregate basis and then, if necessary, the City's cash reserves would be used. Regarding the 2002 -03 fiscal year budget, Risk Manager Farley stated that staff estimated that $512,000 would be needed for the property premium and $450,000 would be needed for the general liability premium. Council Member Heffernan asked how the estimates could be so far off when they were made so recently. Risk Manager Farley stated that the quotes were received after the estimates were made and were beyond what could have been expected. She additionally confirmed that the costs that are over what has been allocated will be paid for through reserves. Risk Manager Farley introduced Mark Zahoryin, account executive for Cal Surance, the City's insurance broker. Mr. Zahoryin stated that when excess insurance is purchased for general liability, the primary layer must be filled first. He stated that Royal Indemnity, the City's only carrier in 2001 -02, could only do $1 million for the primary layer in 2002 -03 due to a new terrorism exclusion in their policy. Mr. Zahoryin stated that Royal Indemnity still provided the best quote for the primary layer on an "occurrence" basis. He explained that quotes based on "claims made" could end up being significantly higher. He added that once the primary layer was satisfied, the goal was to get an additional $10 million for the other layers that would include terrorism. Mr. Zahoryin stated that the goal was met for the second layer and in summary, the City would be fully covered for property on the terrorism issue. For liability, the City would be covered for terrorism on the primary $1 million and the second layer of $10 million excess of $1 million. In regard to the insurance marketplace, Mr. Zahoryin stated that he was able to keep the primary and second layers at a reasonable price, and convinced Clarendon to present a quote for $10 million excess of $11 million for the third level. Mr. Zahoryin stated that the two options presented in the staff report provide the City with coverage limits of $21 million and $16 million for general liability. Mayor Ridgeway asked Mr. Zahoryin to provide more information on the terrorism issue. Mr. Zahoryin stated that the terrorism exclusion has been requested by the insurance companies and only applies to cities with police or fire services. He stated that terrorism is defined as a politically motivated event and does not include riots or civil commotions. Mayor Ridgeway asked if the premium would be reduced if the City agreed to waive the terrorism clause from the policies. Mr. Zahoryin stated that the endorsement for such an exclusion in the Royal Indemnity policy has not been approved by the State Department of Insurance, but added that their quote was still lower than those that did not have terrorism included. Mayor Ridgeway asked if Royal Indemnity had significant losses during the past twelve months. Mr. Zahoryin stated that they did not have losses that were significantly different than the past four years, and are reacting more to potential catastrophic losses than any actual losses. Mayor Ridgeway asked if Royal Indemnity took into consideration that Newport Beach is basically a single story community without high rises. Mr. Zahoryin stated that Royal Volume 55 - Page 256 City of Newport Beach Study Session Minutes July 9, 2002 INDEX Indemnity is still concerned about the protection of the population and the costs for defense. He added that each risk is looked at on its own merits. Mayor Ridgeway confirmed that the $1 million primary layer is per occurrence and the secondary layer would not be used for any occurrences that were not over $1 million. Mr. Zahoryin added that insurance is purchased for the catastrophic losses. Council Member Heffernan cited an example of a single occurrence causing six claims for $1 million each and asked how the claims would be paid. Mr. Zahoryin stated that the City would pay $500,000, the primary layer would cover the next $1 million and the secondary layer of excess insurance would cover the remaining $4.5 million. He added that if it weren't a single occurrence, it would be handled differently. Additionally, Mr. Zahoryin explained that terrorism is covered for the primary layer and the first excess layer of $10 million, but not for the third layer. Council Member Heffernan asked why the City would be liable for an act of terrorism. Mr. Zahoryin stated that the City might not be liable, but the City would still have to defend itself. In regard to the reservoir, Mr. Zahoryin stated that the repair of the reservoir, as well as any damage it might cause, is not covered under the property insurance. Council Member Glover asked if the reservoir was covered for anything. Mr. Zahoryin stated that it is covered for pollution under the City's pollution liability insurance. Council Member Adams asked if staff had considered increasing fees to recover some of the increase in the premiums. City Manager Bludau stated that it hadn't been considered yet. Council Member Adams asked the council members their feelings on increasing user fees for use of City facilities. City Manager Bludau stated that it could be difficult to determine what the fees should be. Mayor Ridgeway stated that the fees for all programs are already inclusive of the City's costs and reviewed on a regular basis. He additionally noted that it is unknown if the increases being experienced this year will continue next year. City Manager Bludau stated that it is not just the cities with their own fire and police departments that are experiencing the increases, since all cities either provide the services or pay fees for such services. Mayor Ridgeway stated that he wasn't prepared to talk about increasing user fees at this point, and was only concerned about getting adequate insurance for the lowest cost. He stated that the increases being presented are 300% for general liability insurance and 60% for property. City Manager Bludau stated that staff will look at fees and allocations, and reminded the City Council that they will need to decide at the evening meeting between the two general liability excess insurance options presented in the staff report. He stated that staff is recommending that the first option be selected that has a coverage limit of $21 million and an additional premium of approximately $113,000. Council Member Glover asked if City programs were still being advertised in other communities and if the practice should be reevaluated. Recreation Superintendent McGuire reported that the City mails the Newport Volume 55 - Page 257 City of Newport Beach Study Session Minutes July 9, 2002 INDEX Navigator, the City's recreation program publication, to all Newport Beach residents and anyone who requests it. Additionally, she stated that press releases are sent out. Council Member Glover noted that although fees are charged, there are still costs associated with providing the programs. Per Mayor Ridgeway's question, Recreation Superintendent McGuire stated that nonresidents are charged an additional fee and that approximately $15,000 to $20,000 is received annually from such fees. Council Member Adams stated that the City facilities that are used by the public might present a higher liability risk to the City, and it's why he brought up the issue of user fees. Mayor Ridgeway agreed that there is a higher probability of a claim, but noted that property insurance is only going up 60 %, which is reasonable given what is going on in the insurance industry. Council Member Glover asked if the fire and police services provided by the City were causing the increase in the insurance costs. Mr. Zahoryin stated that it wasn't the only reason for the increases, but that it is taken into consideration by the insurance carriers when setting the rates. Council Member Heffernan asked what process was used by Cal Surance when the various insurance carriers were evaluated. Mr. Zahoryin stated that Cal Surance knows the areas of concern to the individual insurance carriers, separates these areas out from the all -risk policy and seeks carriers that can provide reasonable coverages for each. Per Mayor Ridgeway's question, Mr. Zahoryin stated that Cal Surance has been the City's insurance broker for 21 years and that he has handled the account for 15 years. He stated that Cal Surance continues to find the best opportunities for the City on all coverages. Mayor Ridgeway recommended that Cal Surance maintain closer contact with the various insurance companies and work harder at getting better rates. Mr. Zahoryin stated that he has 30 clients, all of which are large companies and municipalities, and he has the manpower and the time to adequately service each client. Council Member Heffernan confirmed with City Clerk Harkless that Item Nos. 8 and 9 on the regular meeting agenda would have to be pulled from the Consent Calendar if the recommended action were to be modified. Council Member Adams added that the public can also remove any items for discussion. Barbara Johnson, Newport Beach resident, suggested that the City have someone with insurance litigation expertise look at the policies and determine what coverage is adequate. Mayor Ridgeway stated that the City has a risk manager and a litigation attorney on staff. Council Member Heffernan confirmed with Administrative Services Director Volume 55 - Page 258 City of Newport Beach Study Session Minutes July 9, 2002 INDEX Danner that the insurance reserve fund would be used to pay for the unexpected increases in the insurance premiums. He asked what would be left in the reserve if the staff recommendations were approved at the evening meeting. Administrative Services Director Danner stated that the insurance reserve fund includes reserves for workers compensation, property, liability and compensated absences. He stated that the City is beginning the 2002.03 fiscal year with $3.4 million in reserves for property and liability. He stated that staff originally estimated that $2.8 million would be remaining at the end of the fiscal year, but that the amount would be lower due to the unexpected increases in the premiums. Council Member Heffernan asked if he was concerned. Administrative Services Director Danner stated that there is a concern whenever reserves are used, but that he didn't feel that the reserves were large enough to increase the SIR, which would be another option. 3. CITYWIDE WAYFINDING AND DIRECTIONAL SIGNAGE PROGRAM UPDATE. Assistant City Manager Wood introduced John Temple of Hunt Design Associates, who would be providing a progress report on the citywide wayfinding and directional signage program. Mr. Temple stated that his company has been working closely with staff and the subcommittee that was formed. Per Mayor Ridgeway's question, Assistant City Manager Wood stated that the subcommittee consists of representatives from the Conference and Visitors Bureau, the Chamber of Commerce, lifeguards, General Services, Public Works, and the business improvement districts. Mr. Temple stated that they've been working on a finite list of destinations and sign locations. He stated that four different schematic design variations were created, and reviewed with the subcommittee and Jack Greenspan, a traffic engineer. Mr. Temple stated that the two preferred designs have been refined and expanded into a sign family. He additionally explained that a broad look at the City was taken and gateway locations where major directional signs would be needed were identified. Then, specific district directional sign locations were identified. Using a PowerPoint presentation, Mr. Temple displayed the four schematic designs that were created, as well as a sampling of some gateway signs. He then displayed the first of the two preferred designs that were selected, which also became known as the rectangular version or Version A. Mr. Temple displayed the Version A main directional signs, district directional signs, freestanding gateway signs and pole mounted gateway signs, as well as a rendering of how a sign would actually look on a roadway. For City Manager Bludau, Mr. Temple stated that the handout shows the correct shade of yellow or gold better than the slide. Mayor Ridgeway asked if it had been considered to add wording on the signs to indicate the direction to travel to get to San Diego. He noted that many visitors are trying to travel south of Newport Beach and don't know how to get there from the peninsula. Volume 55 - Page 259 C -3495 Citywide Wayfinding & Directional Signage Program (38) City of Newport Beach Study Session Minutes July 9, 2002 INDEX Referring to the rendering presented, Council Member Heffernan felt that sign clutter wasn't being eliminated, and confirmed with Mr. Temple that no signs would be removed. Council Member Adams pointed out that in the rendering, the signs remaining included a regulatory sign, which wasn't a part of the sign program, and the other was a historic sign, which isn't in the same family as the directional signs. Mr. Temple confirmed that eliminating sign clutter was a goal of the program, and that redundant signs would be removed. Mr. Temple continued his presentation by displaying the second of the preferred signs, Version B or the oval signs. He stated that the imagery and the right look for each district is still being developed. Per Council Member Adams' question, Mr. Temple stated that the minimum letter height in the signs is 4 -a/, inches. In conclusion, Mr. Temple stated that the next steps include testing the signs with full size mockups, meeting with the subcommittee, evaluating the sign messages and locations, and refining a preferred design. Council Member Glover asked if there was a need to have "Newport Beach" on all of the City entry signs. She stated that it just seems to add more verbiage and causes a problem. Mr. Temple stated that he was directed by the subcommittee to make the whole system inclusive and insure that when someone was in Corona del Mar, for example, they knew they were in Newport Beach. Assistant City Manager Wood added that the original recommendation by the Economic Development Committee (EDC) included a comment that visitors don't always realize that the City's many villages are all a part of Newport Beach. Council Member Adams asked why the background color of the recommended signs wasn't in conformance with the Manual of Uniform Traffic Control Devices ( MUTCD). Mr. Temple stated that the issue was not discussed with the traffic engineer. Council Member Adams stated that the MUTCD specifies that guide signs are to be white lettering on a green background, and expressed his concern for potential liability. He pointed out that a blue background, as used in Version B, is the national standard for airport signage. Council Member Adams stated that although he, personally, didn't like the preferred designs chosen, liability exposure and conformity were issues that needed to be addressed. He additionally stressed that the full size mockups are very important and legibility from vehicles needs to be insured. He stated that the structural impact of the pole signs also needs to be addressed and, lastly, he stated that the MUTCD recommends no more than three destinations per sign. Having more could create a potential liability issue. Mayor Ridgeway requested that staff look into the issues discussed by Council Member Adams. He additionally stated that he disagreed with using a blue background, due to its poor readability. He did believe that "Newport Beach" should remain on every sign, however. Volume 55 - Page 260 City of Newport Beach Study Session Minutes July 9, 2002 INDEX Council Member Adams noted that the rendering showed directional arrows that were too small, and looked more like pinpoints. He stated that the arrow selected was designed for pedestrian -level usage and not for roadways. He also asked if the median mounted sign monuments would be durable, or if they would be the Styrofoam kind that had been used in the past. Public Works Director Badum stated that there are alternatives for using signs that are breakaway, and they wouldn't necessarily have to be of the Styrofoam type. Council Member Adams stated that a fixed object sign would probably be denied by CalTrans. 4. FIREWORKS POLICY. City Manager Bludau stated that the City does not currently have a fireworks policy, and that staff was directed by Council Member O'Neil to present possible options for City Council consideration. City Manager Bludau stated that the staff report includes information on how the fireworks permits are currently issued, and one problem to consider is how the public should be notified of any fireworks displays. He suggested that the applicant be required to do a citywide mailer, since it is difficult to determine who will be affected by any given display and this would insure that everyone would be notified. City Manager Bludau stated that one fireworks policy option the City Council might want to consider would be to disallow fireworks displays in the City, except for on the 4th of July and other special circumstances approved by the City Council. He stated that another potential option would be to allow fireworks displays, but with strict time restrictions in place. He noted that it could be enforced by disallowing a permit for a given period of time to a fireworks vendor who violated the requirement or having the applicant post a bond. Mayor Ridgeway stated that the residents in the City have a strong interest in fireworks. He stated that although the private fireworks display that caused so much attention a few weeks prior was conducted too late at night, he didn't think it was reasonable to require the applicant to provide citywide notification. He stated that he could support displays that occurred prior to 9:00 p.m. on Fridays, Saturdays and some holidays. Mayor Pro Tem Bromberg stated that he could support a 9:00 p.m. time limit for displays, but that the City shouldn't get too involved beyond that. He added, however, that he will work towards a 4th of July fireworks display taking place in 2003. Council Member Adams asked if the City would be pursuing the issue of the Dunes not offering a fireworks display in 2002. If a display were to take place in 2003, he suggested that the launching area be moved from the lagoon to the southern end of the nature preserve to mitigate some of the liability problems. Mayor Ridgeway stated that he supports a fireworks display for the 4th of July. He added that at the current meeting, the City Council is deciding Volume 55 - Page 261 Council Policy/ Fireworks (41) City of Newport Beach Study Session Minutes July 9, 2002 what policy the City should have and what should be included in the policy. INDEX Council Member Heffernan stated that there will be more fireworks displays requested in the future. He confirmed with City Manager Bludau that the current permit requires proof of insurance and use of a certified fireworks technician. City Manager Bludau noted that requiring a bond is not currently required, but is being recommended. Council Member Heffernan stated that minimum requirements need to be established, as the requests will continue. He noted that a recent 30- minute display in Avalon cost $15,000, which is considered an affordable cost to many. Mayor Ridgeway stated that fireworks purveyors quote costs of closer to $1000 to $2000 per display minute. He asked the City Manager if he received the direction he needed regarding a fireworks policy. City Manager Bludau stated that setting time limits would not require a new policy, but requiring a bond and denying future requests based on noncompliance would. Council Member Proctor asked how other beach communities are handling fireworks displays. Fire Chief Riley stated that a survey of other beach communities had not been conducted. He noted, however, that all fire departments are following the same standards in regard to safety regulations. He stated that research could be done in regard to the event approval process. Mayor Ridgeway requested a report on the other beach communities, and suggested that it include the fireworks displays conducted by Disneyland and how their situation is handled. Fire Chief Riley stated that the problems experienced by Disneyland are the same problems experienced by the Dunes, and noted that the biggest problem is claims from fallout. He stated that where to conduct a fireworks launch is a major issue. Fire Chief Riley stated that there is not a Council policy in Anaheim and that Disneyland has conducted the fireworks at 9:30 p.m. since 1958. Council Member Glover noted that a newly formed group has made presentations to the South Coast Air Quality Management District about the pollution caused by the Disneyland fireworks. City Manager Bludau stated that staff would conduct a survey of the coastal cities and present the findings at a future study session. Dolores Otting suggested that staff also contact the Big Canyon Association, because they conduct fireworks displays every year. PUBLIC COMMENTS Barbara Johnson, Newport Beach resident, complimented and thanked the City for the cleanup that was done on July 5, 2002. Additionally, she asked for the status of her suggestion for the City to form a budget committee. City Manager Bludau stated that he would be reporting back to the City Council on the matter at an upcoming City Council meeting. Volume 55 - Page 262 City of Newport Beach Study Session Minutes July 9, 2002 INDEX Dolores Otting stated that in 1996, the City Managers of Orange Cc signed an agreement that refuse would only be taken to County landfills. stated that an endorsement in the Cal Surance pollution policy includes i landfills and should be reviewed. ADJOURNMENT - 5:55 p.m. The agenda for the Study Session was posted on July 3, 2002, at 2:45 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 263 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting July 9, 2002 - 7:00 p.m.°� INDEX PUBLIC FACILITIES CORPORATION MEETING — 4:05 p.m. — 4:10 p.m. CLOSED SESSION — 5:55 p.m. •4ML4ML4ML4MLML4RL4 A. RECESSED AND RECONVENED AT 7:10 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Absent: None C. CLOSED SESSION REPORT — None. D. PLEDGE OF ALLEGIANCE — Mayor Pro Tern Bromberg. E. INVOCATION — The Reverend Richard Menees, Saint James Episcopal Church. F. PRESENTATIONS Presentation of "Every 15 Minutes" Video. Mayor Ridgeway introduced Corona del Mar High School Principal Sharon Fry, School Board of Trustee Judy Franco, and Rachel Colgate, the student who created the video for her Senior project. Ms. Colgate stated that if the video and experience changed one person's mind about driving drunk, it was worth it. Presentation by the Conference and Visitors Bureau. Bridget Linquist, Interim Executive Director, utilized a PowerPoint presentation to show the importance of visitor revenue to the City. She discussed highlights from a research survey on the profile of visitors to the City and compared it to the County. Presentation by the Irvine Ranch Water District (IRWD). Paul Jones, General Manager, utilized a PowerPoint presentation to show their Natural Treatment Systems (NTS) Project. 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): • Council Member Heffernan requested that the City's proposal to take over the Newport Coast slope maintenance be put on a study session agenda. Volume 55 - Page 264 Every 15 Minutes Video (33) City of Newport Beach City Council Minutes July 9, 2002 Council Member Heffernan stated that he would like to see a report with detailed line items from the Airport Working Group (AWG) on the expenditure of the $3.6 million grant that was made by the City. He added that, once it is received, he wants the City to audit the report to verify the accuracy of the figures. Council Member Glover requested a two -year audit of the Citizens for Jobs and the Economy (CJ &E) and AWG since the public is demanding to know where the money went and feels that Council has not handled this properly. She believed that the audit should be conducted by an outside audit firm. She stated that she feels very strongly that Council has not misaliocated funds and that the groups have not done anything wrong. She noted that many attorneys were used to conduct oversight on the funds. Council Member Adams stated that the Mayor received a letter recently complaining about the Building Department plan check procedures. He added that he has also received two complaints from constituents from his district. He indicated that there has been a recent change in procedures, but there are still a lot of disgruntled customers. He asked that the City Manager assess the new procedures and report back to Council. Mayor Ridgeway suggested giving the report after the program has been in effect four to five months. I. CONSENT CALENDAR READING OF MINUTESIORDINANCES 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. ORDINANCE FOR INTRODUCTION 3. Removed at the request of an audience member. RESOLUTION FOR ADOPTION 4. Removed at the request of Council Member Adams. 5. UNIVERSITY DRIVE ZONE III 16 -INCH WATER MAIN IMPROVEMENT PROJECT (C -3468) — COMPLETION AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; 4) release the Faithful Performance Bond one (1) year after Council acceptance; and 5) authorize the Public Works Director to approve Change Order No. 4 in the amount of $9,958.40 and authorize the encumbrance of an additional $9,958.40 to Brongo Construction from Account No. 7501- C5500386. 6. Removed at the request of an audience member. Volume 55 - Page 265 INDEX C -3468 University Drive Zone II 16 -Inch Water Main Improvement (38) City of Newport Beach City Council Minutes July 9, 2002 Removed at the request of Council Member Heffernan. MISCELLANEOUS ACTIONS 8. Removed at the request of Council Member Heffernan. 9. Removed at the request of an audience member. Motion by Mayor Pro Tem Bromberg to approve the Consent Calendar, except for the items removed (1, 3, 4, 6, 7, 8, and 9). The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None J. ITEMS REMOVED FROM THE CONSENT CALENDAR MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF JUNE 25, 2002. Jim Hildreth, The Grand Canal, referenced volume 55, page 248 and believed that his statement that there are structures that are legitimate for accessing the canal should be included in the minutes. He requested that his comments be reviewed and restated. Further, he believed that he said more than what was stated on page 250 and requested that this be corrected. Regarding page 253, he stated that his comments regarding an audit for the Harbor Resources Department and how people become more feeble as they get older were not included. He believed that, if his comments are not recorded correctly, he must assume that comments made by other individuals are not being recorded correctly. He stated that this is public record, is the document that will be presented if there is a legal issue, is important, and is what is going down in history. He noted that Council is supposed to make sure that City employees are doing their job accurately. He asked if he needs to obtain three copies of these with video tapes, compare them, and present them to Council. He stated that he would like to never say "Item No. 1 or No. 2" again, but would like the City to be correct and accurate. Motion by Mayor Pro Tem 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, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 3. PROPOSED AMENDMENT TO SECTIONS 13.09.010, 13.09.020, AND 13.09.040 OF THE NEWPORT BEACH MUNICIPAL CODE (PARKWAY TREES). Volume 55 - Page 266 INDEX Ord 2002 -13 Parkway Trees (62) City of Newport Beach City Council Minutes July 9, 2002 City Manager Bludau requested that "the parkway" be removed from Section 13.09.020 (Costs) so it reads, "The property owner shall be responsible for all costs associated with the purchase and planting of trees as required by this chapter." Jim Hildreth, Newport Beach, asked if this means that anyone that has a tree in front of their house now has that tree as their property and has to maintain it rather than submit the maintenance to the City as a service done by the City to be reimbursed. Further, he asked if this was retroactive. He believed that a lot of the ordinance is being black -lined and there is a lot of questions that should be addressed. He asked if the City is going to adopt this so more trees are removed and believed that this is going to be a hardship for residents. He hoped that Council reconsiders. Dolores Otting indicated that the City will be paying for replacement trees in Newport Coast; however, other residents will be following the ordinance. She believed that the City will be setting up two different classes of people and that this is not the kind of City it once was prior to January 2002. Motion by Council Member O'Neil to introduce Ordinance No. 2002 -13, as amended, amending Sections 13.09.010, 13.09.020, and 13.09.040 of the Municipal Code, and pass to second reading on July 23, 2002. Mayor Ridgeway assured everyone that the ordinance applies Citywide, including the new annexation area. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 4. MEASURE M ELIGIBILITY RE- QUALIFICATION FOR FY 2001- 2002. Council Member Adams stated that one of the few roadways in the City that has yet to reach its Master Plan width is Jamboree Road which is supposed to be eight lanes. He emphasized that his constituents are adamantly opposed to widening Jamboree Road and expressed concern that the City is adopting a Capital Improvement Program (CIP) that begins to set the widening in motion. He indicated that people from his district have asked that this portion of the Circulation Element be considered for revision during the General Plan Update (GPU) process and requested that the City attempt to get the designation changed on the County Master Plan. Council Member Adams stated that the report lists a few projects that the City is requesting in the CIP, like the widening of the north end of Jamboree between MacArthur and Bristol, but noted that this is one of the most congested intersections in the City. Public Works Director Badum stated that there are projects on the list that they expect to see modified. Regarding widening, he indicated that staff has always scaled this back. He believed that they are thinking more about intersection improvements that would essentially have the same effect. He noted that the projects are set for the future and will not be coming up this fiscal year and that this Volume 55 - Page 267 INDEX Res 2002 -48 Capital Improvement Program/ Measure M/ Congestion Management Programs/ Circulation Element (74) City of Newport Beach City Council Minutes July 9, 2002 INDEX gets recertified annually. He believed that, through the GPU process, the City will take a hard look at Jamboree Road. Further, the numbers will show that they will not have to do as much as originally indicated in the Master Plan. He stated that the City would need to change its own Master Plan and then work with the County to modify their Master Plan. He believed that a lot of the projects were put on the table years ago to try to address all possible projects and to help the City develop the Impact Fee Program. He believed that, as the GPU is done and the Master Plan is modified, the Impact Fee Program will also need to be reviewed. He stated that, in the interim, the City needs to keep its options open. He indicated that the City is not actually applying for funding at this time, explaining that this is essentially a placeholder. Council Member Adams stated that he is leaning towards opposing the entire item because of the Jamboree/Ford Road widening project. He indicated that it makes him nervous that it is on the Seven Year Capital Improvement Program when he does not know enough about it. He stated that last year he did not want to spoil the whole application; however, another year has gone by and there is another Jamboree Road widening project on the list. He indicated that he understands that his constituents should not drive the decision for the whole City, but believed that the decision needs to be fair and made part of the GPU process. Council Member Glover reported that, when she first became a Council Member eight years ago, one of the first acts she did was to take away the widening of Dover Road. She stated that she was told by everyone that she could not do this and that it would affect Measure M funds and the City's and County's traffic plan. She indicated that she had it taken off the City's Master Plan and the County's Master Plan. She reported that she did this because it was not in her district's best interest. She noted that one of the criteria in the Traffic Phasing Ordinance (TPO) deals with intersections that can physically be widened. She stated that, if it is not possible, then Council does not have to do it. She stated to Council Member Adams that he can probably get this done if he has the will and added that she would be supportive of his efforts. Motion by Mayor Pro Tern Brombere to 1) adopt the Seven -Year Capital Improvement Program; 2) direct staff to submit the adopted Capital Improvement Program, Maintenance of Effort Certification, Growth Management Element, and Transportation Demand Management Ordinance to the Orange County Transportation Authority to satisfy the eligibility provisions for the Measure M and the Congestion Management Programs; and 3) adopt Resolution No. 2002.48 pertaining to the status of the City's Circulation Element and affirming there has been no unilateral reduction in lanes on any Master Plan of Arterial Highways street during FY 2001 -02. Mayor Pro Tem Bromberg stated that he has the same concerns as Council Member Adams. He indicated that he is making the motion on the good faith of the Public Works Director's comments that the City will be looking at this very closely based on the GPU process. The motion carried by the following roll call vote: Volume 55 - Page 268 City of Newport Beach City Council Minutes July 9, 2002 Ayes: Heffernan, O'Neil, Bromberg, Glover, Proctor, Mayor Ridgeway Noes: Adams Abstain: None Absent: None 6. LICENSEE AGREEMENT WITH TOWER OPTICAL COMPANY, INC. Gary Gardhouse, Carden Coin Telescope, 3450 State Street, Corona, stated that he is appealing the decision. He reported that his company has been doing business with the City for 55 years, has had a good relationship, and always paid on time. He stated that he was asked to remove his telescopes from the Newport and Balboa Piers in November so the piers could be resurfaced and was told that he would be able to reinstall the telescopes in about three months; however, Harbor Resources Director Melum decided to go out to bid. He added that, for 55 years, they have been on a month -to- month contract, while the proposed contract is yearly. He noted that Mr. Melum stated that their proposal was the most financially beneficial for the City. Mr. Gardhouse expressed concern relative to the health issues when using a Tower Optical telescope, stating that if someone coughs on the telescope, the next person is very close to the area that was coughed on. He believed that his style of telescope is the healthiest and safest. Mayor Ridgeway stated that one of the reasons for the change was due to a site review in which all the telescopes from Tower Optical were operational while the Carden Telescopes were not all operational. Mr. Gardhouse indicated that he checked all his telescopes from San Clemente to Hermosa and found that all of them were working fine. Motion by Mayor Ridgeway to continue the item to the July 23, 2002, Council meeting. Jim Hildreth stated that Council understands his position with Mr. Melum and does not understand why he is not in attendance tonight to clarify the accusations that the binoculars were not working well. He believed that, after his dealings with Mr. Melum, his credibility is questionable and believes Mr. Gardhouse when he says they work. He agreed that the Carden Telescopes are a bit better than something that has a full face. He indicated that, if the City wants the telescopes to be working at all times, it should be flexible since everything eventually breaks. He stated that repair service should be done within a certain period of time and indicated that this should be reviewed when this is brought back to Council. Mayor Pro Tem Bromberg stated that, when this comes back, he would like to see the science behind the conclusions. Mayor Ridgeway added that they also need an answer to the health and safety concerns. He stated that he has used the telescopes and that they have never been broken. Council Member Adams stated that the other company may also wish to be present at the next meeting. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Volume 55 - Page 269 INDEX C -3544 Coin Operated Binocular Viewers (38) City of Newport Beach City Council Minutes July 9, 2002 Abstain: None Absent: None Mayor Ridgeway noted that the proposal from Carden Coin Telescopes has a higher revenue sharing component. In response to Council Member Proctor's question, City Manager Bludau believed that the adequate time to protest the action was tonight when the bid is being considered by Council. He indicated that this is a rental agreement, not a procurement agreement. 7. SUMMER -FALL 2002 WATER QUALITY TESTING CONTRACT: VESSEL WASTE DISCHARGE STUDY. Assistant City Manager Kiff stated that the contract is for a vessel waste discharge study which is a requirement of the fecal coliform TMDL that was adopted about two years ago. He indicated that it involves determining whether or not boaters in the marinas or moorings, or traveling through the channels, illegally discharge waste into the harbor. He noted that this is a no discharge harbor and any waste discharge is prohibited. He reported that there is a pending federal bill being proposed to allow the discharge of certain waste if it was treated by a special marine sanitation device (MSD). He explained that the MSD really only looks at bacteria treatment thresholds rather than viral treatment thresholds. He stated that the City is officially opposed to that bill and Congressman Cox has promised to aggressively oppose it. Mr. Kiff reported that three different marinas and possibly a mooring area with liveaboards will be tested. Further, the testing will occur over three weekends and possibly every hour. He stated that the tests are coordinated with the Regional Board who also approves the final scope of work. He reported that the test results will become public record after it is analyzed and will be submitted to the Regional Board as a requirement of the City fulfilling the fecal coliform TMDL obligation. He noted that each test will cost about $10. Jim Hildreth, Newport Beach, believed that the study should also include disposal sites where boats have their pumps cleaned. Further, consideration should be given to the services that clean the liveaboards' tanks because, if the person doing the service accidentally spills into the harbor, the boat owner will be charged. He stated that the survey should also take into consideration when the boats are cleaned. He stated that the IRWD survey of the Back Bay needs to also be considered. He believed that the attack on vessel waste discharge is an attack on boats. He asked if the City is trying to remove boats in a different way and not allow boats in the harbor unless it is a commercial vessel. He believed that the City is picking on boat owners and he does not like it. He added that people with boats will probably not take the time to consider this issue because they are too busy working on their boats and trying to make it stay afloat. He believed that an assistance league for boat owners would be a wise thing to have to help the harbor stay clean, to aid a person in maintaining their boat, and to help a person relieve himself of the obligation of having a mooring. Motion by Council Member Heffernan to authorize the Mayor to execute a contract with the University of California in an amount not to exceed $45,000 using funds budgeted in the Capital Improvement Program Volume 55 - Page 270 INDEX C•3545 Vessel Waste Discharge Study (38) City of Newport Beach City Council Minutes July 9, 2002 for this purpose. Mayor Ridgeway stated that he is a boater and that the boating industry is supportive of clean water. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 8. GENERAL LIABILITY EXCESS INSURANCE RENEWAL. City Manager Bludau reported that Council discussed during the study session whether to support Option 1 which would provide for a liability insurance coverage of $21 million at a cost of $944,107 or Option 2 which would provide for a liability insurance coverage of $16 million at a cost of $830,532. He stated that it is staffs recommendation to approve Option 1. Council Member Heffernan stated that the premium has almost tripled in one year and that this is true for anyone buying insurance. He noted that this is partly due to September 11 and a general tightening of the insurance market. He stated that the City's best estimates in the budget were off even though it was substantially increased. Jim Hildreth asked how much of the general liability the City paid out throughout the year to justify the increase in the premium. He also asked if the City has tried to find out how to keep the premium down. He believed that, if the City is a safe city, the premium should not have to go up and there would be no reason for the liability premium to go up if the City did not have people making claims against it. Motion by Council Member Proctor to approve the renewal of the excess general liability insurance coverage for FY 2002 -03 for $944,107 in annual premium (Option 1). The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 9. PROPERTY INSURANCE RENEWAL. Jim Hildreth asked if there is insurance on the pump stations if they contaminate the waterways so the City does not have to worry about being sued by the State of California for having the Harbor of Newport Beach polluted. He noted that there is no notation about any of the access ladders in the harbor that are used for accessing the boats. He stated that they should be a City liability and should be included because they are City property. He requested that those be reviewed because the staff report is lacking a few objects that the City does own and should be maintaining to Volume 55 - Page 271 INDEX General Liability Excess Insurance Renewal (47) Property Insurance Renewal (47) City of Newport Beach City Council Minutes July 9, 2002 INDEX allow people to access their boats. He stated that, since the Newport and Balboa Piers are included, the access ladders that the City maintains and owns should be included. Motion by Council Member O'Neil to approve the renewal of the entire property insurance coverage program for FY 2002.03 for a total premium of $634,110. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None Announcement Mayor Ridgeway stated that the cable television public meeting that was scheduled for July 23, 2002, has been changed to August 27, 2002, due to a cable consultant scheduling conflict. He indicated that questions can be directed to Public Information Officer Jackson at 644 -3031. K. PUBLIC COMMENTS Dr. Jan Vandersloot stated that he is representing the Balboa Arbor Society. He noted that there was supposed to be an agendized item regarding the ficus trees on Main Street tonight, but it was cancelled. Mayor Ridgeway indicated that he explained to Dr. Vandersloot over the phone that he was beyond his authority in calling for an item since it was past the reconsideration time. He noted that the reconsideration had to take place at the subsequent meeting after the vote. He indicated that there was no reconsideration and, when he attempted to bring it up, the City Attorney advised him that he was beyond his authority. He stated that he doubts this will be agendized again since it was heard and voted on. He indicated that he told Dr. Vandersloot, if he has the desire, he probably needs to go through the court system. Regarding the scheduling, Mayor Ridgeway stated that the contractor cannot commence construction on Phase II of the Balboa Village Plan until September 15. He believed that it is the intent of the City to cut the trees down by September 15 to prepare for construction on Main Street. Dr. Vandersloot requested a reassurance that the trees will not be removed prior to September 1. Council Member Adams noted that Council sets policies, but it is the City Manager who is ultimately responsible for City process. City Manager Bludau assured everyone that the trees will not be removed prematurely. Jim Hildreth thanked Council for allowing him to learn so much from Council meetings. He referenced a document directed to Bob McCaffrey in 1998 from Wes Armand of the Fire and Marine Department which basically states that the mooring was approved by the City in 1976 and is listed as a pier permit. He asked how to get down to it and noted that he was told that access is denied for this location. He stated that leased property cannot be denied and believed that removing this structure will remove Volume 55 - Page 272 City of Newport Beach City Council Minutes July 9, 2002 If o�Tatil other mooring structures in the canal. He noted that this is an access location, not a mooring, and that Mr. Armand has told him that there are no moorings in the Grand Canal. He stated that the City has allowed for a structure to be placed on the northwest end of the Grand Canal and that location is assigned to P.O. Box 5350. He indicated that there is a lock on it, it cannot be accessed, and it is difficult to use as an access structure unless you have a key. He stated that, even though it is not a detriment to the general public, it is a structure that the City allowed assigned to a P.O. Box. He added that there is no documentation that says that the structure is liability insured. He indicated that the structure that he proposed was liability insured and noted that the City Manager stated that the City - installed ladder was not insured for his use. He asked if the City will be putting in an access structure there. He stated that the issue is not accessing it, but that the City said it would install a public access structure. Mary Carlyle Porter, 700 Larkspur Avenue, stated that the ficus trees have been designated as landmark trees and that she has a problem with them being removed. She indicated that, if and when this issue comes back, she hopes they have succeeded in saving the trees. Brian Stoll, 315 Balboa Boulevard, stated that the more he hears about the ficus tree issue, the more it starts to have the smell of recent Enron and WorldCom malfeasants of public trust. He noted that, of the seven Council Members, two were not present for the vote. He stated that the purpose of Council is to represent the interests of the people that reside in that area. He added that there seems to be misrepresentation and expressed concern about how the vote was taken and how the issue was disagendized tonight. He believed that removing the trees does not seem in accordance with the will of the people that are aware of the matter. Jeff Kubler stated that he is a certified arborist in Kansas and understands the circle of life. He indicated that 30 to 50 year old ficus trees cannot be removed and replaced with 10- gallon seedlings because you do not get a canopy. He believed that it would be better if they were removed in sections so the canopy is reestablished in 10 years rather than 30 years. Gus Chabre stated that he has appeared on the ficus tree issue before several bodies of the City. He indicated that since he has lived on the peninsula since 1965, there have been many studies to try to do something with Balboa. He reported that Balboa Boulevard has now been revamped and now the City is on the right track. He requested that it stay on the right track, move onto Main Street, and not waiver. He noted that this is supported by the communities that live around the Village. Laura Dietz stated that she was pleased to see the fireworks policy on the study session agenda today; however, she took issue that the staff report states that notification of affected residents does not seem to be practical. She noted that she received a hand delivered notice six days prior to the Fourth of July from someone who was having fireworks. Kay Mortensen, 1530 Miramar Drive, thanked Council for their vote to move forward with the revitalization of Balboa Village, remove the ficus trees, and replant with Coral Gum trees. She stated that the homeowners associations, business association, and Parks, Beaches & Recreation Volume 55 - Page 273 City of Newport Beach City Council Minutes July 9, 2002 INDEX Commission are supportive of Council's position. She indicated that, prior to the decision, people attended meetings for over two years and noted that there was a public outreach program. She stated that Phase I is complete and beautiful, and that she is looking forward to Phase II starting in the fall and the completion of the Village. Bob Black, 400 Main Street, Vice President/General Manager of the Balboa Pavilion Company, thanked Council and staff for what has been done in Phase I. He reported that studies have been conducted for 15 to 20 years on what will happen in Balboa. He agreed that the trees are beautiful; however, the roots are destructive. He noted that the trees are in a confined area, unlike the tree in front of City Hall that is in an open area. He reported that they had to replace the parking lot driveway in 1994 and had damage to their electrical service. He commended the City for moving forward and hoped that the vision can be finished in Phase II. Michel Pourmussa, owner of the Balboa Inn Hotel, 105 Main Street, stated that he is in favor of the decision to remove the ficus trees because they are destructive. He reported that they are currently having plumbing problems due to the roots, noting that he spent $2,100 two weeks ago. He thanked Council for its decision. Jim Caviola, Trees for Seal Beach, stated that they started their organization about six years ago because they were facing the same problems as the City. He indicated that the problem is actually with the clay pipes and that they should be replaced. He expressed concern that the Mayor told a citizen to bring a lawsuit against the City and believed that it is a waste of resources. He noted that there is a runoff problem and that the trees absorb a lot of runoff. He stated that this is a CEQA issue. He indicated that Seal Beach saved its trees by cutting the roots and having the land owners replace the sewer pipes. He noted that the businesses should be shut down if they leak sewage. Paul Mesmer, Owner of Bibi Anna's Restaurant, 205 Main Street, stated that he bought the restaurant about a year ago. He indicated that the previous owner assured him that the tree removal was going to happen and that the plumbing costs she incurred would not happen to him; however, he wrote a check last weekend for a recurring plumbing problem. He stated that he would like to provide the Village with sidewalk dining since the sidewalks will be widened and the trees will be replaced and relocated. He indicated that he supports Council's decision. Regarding the Seal Beach issue, he commends them for the wonderful job they did in their revitalization and looks forward to seeing the Village do the same. Bob Small, 401 391' Street, stated that the City did a great job during Fourth of July. However, he reported that trash used to be picked up on Saturdays when the weekly renters moved out, but it was not done last Saturday and the alleys looked horrible. Mayor Ridgeway stated that, when Fourth of July is midweek, the City does not pick up on Saturday. Christine Carr, 2712 Cliff Drive, stated that there has got to be a way to save the trees so everyone is happy. She noted that the trees give so much shade and air, and that it will be sad to see all the greenery gone. Volume 55 - Page 274 City of Newport Beach City Council Minutes July 9, 2002 INDEX Katelyn Watson stated that she, her brother, and a friend put up posters on the trees in Balboa Village on Saturday and that it was not fair that people tore them down. She expressed her hope that the trees could be saved for everyone to enjoy. An unidentified speaker thanked Council Members Heffernan and Glover for voting to save the trees. He stated that a Council Member told him that a majority of the peninsula residents wanted the trees removed, but believed that the majority was not aware of what was going on. He stated that, looking at the signatures they gathered, the majority of the residents would like to see the trees saved and a proper pruning system implemented similar to Seal Beach and Balboa Island. He hoped that the viewers will write their Council. He noted that the children's pictures and ribbons were torn down and believed this could be in violation of someone's right to free speech. He stated that it is unfortunate that people are getting hostile and believed that this was turned around on them at a previous meeting. Mayor Pro Tem Bromberg clarified that the Marine Avenue trees on Balboa Island do have pavers; however, they are not ficus trees, but eucalyptus trees. Richard Vogel, 351 Old Newport Boulevard, Suite 363, stated that he owns the Old Balboa Hardware Building on the corner of Main Street and Balboa Boulevard and his family has been associated with Main Street for over 80 years. He believed that the canopy is important to businesses in drawing people in and that there are studies that show that people are drawn to cozy, shady areas. He noted that the Conference and Visitors Bureau reported that business in the City has steadily increased, but believed that business on Main Street over the same 10 years has decreased. He stated that he has had to drop his rates considerably to save the tenants on Main Street. Mr. Vogel believed that every change makes the area less friendly and that the area is losing the charm and character that took a century to build. He stated that he would hate to see businesses fail. He indicated that he understands if removing the canopies will improve business and everyone will be happy, but expressed concern that this is something that cannot be reversed. He added that he has yet to receive notice of any of the meetings or hearings. Dayna Pettit, 1741 Plaza del Sur, stated that she is representing the Balboa Merchants and Owners Association (BMOA). She indicated that many people have spent thousands of volunteer hours making Balboa a better place and noted that the City is spending major dollars to bring Balboa back. She stated that they want to continue the new look and keep the continuity which means that the trees need to come out. She reported that the trees are too large, creating problems for the businesses, and inhibiting them from having sidewalk cafes. She stated that root pruning and replacing the sidewalks will cost $4,500 /tree, there will be continued disruptions to the businesses, and the process would be ongoing. Ms. Pettit added that people have said they would boycott businesses if they did not support keeping the trees. She pointed out that the issue has been voted on by the PROP Committee, PB &R, the Balboa Peninsula Point Association, and BMOA, and noted that Council also voted to have them removed. She indicated that the trees are not as beautiful as they should be and only measure 5 to 6 feet in circumference, unlike the 8' /a feet circumference of the City Hall trees where they have the appropriate park Volume 55 - Page 275 City of Newport Beach City Council Minutes July 9, 2002 INDEX surrounding. She noted that the trees are about the same age. believed that continually pruning the trees may cause them to fall over. Mayor Ridgeway stated that he walked Main Street last week and tried to talk to every business. He reported that BJ's Pizza and Studio Cafe now have damage to their foundations due to roots. Linda Grant stated that people are saying they are threatening them when all they want to do is save the trees. She indicated that they have not boycotted any restaurants and reported that she was asked to leave a restaurant. She took issue with Mayor Pro Tem Bromberg's statement from a previous meeting. She indicated that she did not know this was happening and feels they are the ones being hurt. She noted that children put up posters that were torn down and asked what type of adult could do that to children. She stated that they did not bother the City and put up yellow ribbons when it had its Village Fest and Ruby's Diner Grand Opening, or during the Fourth of July. She asked that the yellow ribbons be allowed because it is their freedom to speak, plus it lets the public be aware of what is happening. She stated that it saddens her that the meeting was cancelled and that the Mayor feels that they have to sue. She asked the public not to take the children's posters down. Lynn Miller stated that she looked into the association votes and reported that the April vote for the Balboa Peninsula was to keep the trees, but they took 13 call -in votes to remove the trees and did not count the 124 signatures from people who signed a petition to keep the trees. Regarding the BMOA, she stated that they do not allow the shop owners to vote. Regarding the Central Association, they did not take a vote. She stated that she will turn in the minutes from these meetings and the petition at a later date. She believed that the trees are like an oasis in the desert that could never be replaced if removed. Cheryl McDowell, 1537 E. Ocean Boulevard, stated that they will be raising funds for the legal effort to keep the ficus trees. Gabe Green, 310 Fernando Street, used a keyboard to sing a ficus tree song to the tune of "Tie a Yellow Ribbon Round the Ole Oak Tree Jj ". Dolores Otting presented the City Manager with a page from the internet of a search she conducted of Newport Beach. She stated that someone needs to be in charge of making sure that the Brown Act is followed at all the committee and commission meetings. She also presented a Site Survey and Geotechnical Analysis for the Coyote Canyon Landfill. She read the design parameters for the community center and took issue that the document changed from "could include" a gymnasium, meeting rooms, kitchen, library, etc. to "would include ". She suggested surveying other cities to see how many libraries they have. Bud Grant noted that the Mayor said that the City Attorney told him he does not have the authority to give them the opportunity to discuss the ficus tree issue on an agenda. He asked where it is written that he does not have the authority. Amelda Fernandez invited everyone to participate in the Balboa Arbor Society. Dr. Vandersloot reported that the Balboa Arbor Society can be Volume 55 - Page 276 City of Newport Beach City Council Minutes July 9, 2002 reached at 548 -6326 or johnv3@aol.com. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES • Council Member Heffernan stated that he serves on the Newport Coast Advisory Committee and announced that he asked for a future study session item earlier this evening regarding the issue of the City potentially assuming slope maintenance in Newport Coast. M. PLANNING COMMISSION AGENDA AND ORALSTATUS REPORT 10. PLANNING COMMISSION AGENDA FOR JULY 4, 2002 [MEETING CANCELLED]. No action taken. N. PUBLIC HEARINGS 11. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE TO TROJAN PORTABLE SERVICES. Mayor Ridgeway opened the public hearing. Motion by Council Member O'Neil to adopt Ordinance No. 2002 -12 granting a Non - exclusive Solid Waste Franchise to Trojan Portable Services. Hearing no testimony, Mayor Ridgeway closed the public hearing. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 12. VACATION OF EIGHT -FOOT (8) WIDE WATER EASEMENTS IN CORONA HIGHLANDS TRACT NO. 1237. Public Works Director Badum reported that this is the result of the new water lines being completed in the Corona Highlands neighborhood. He noted that the easements are no longer required for serving water and all the new water lines are in the streets. Motion by Mayor Pro Tem Brombere to adopt Resolution No. 2002 -49 ordering the vacation and abandonment of the 8 -foot wide water easements located between Lot Nos. 154 and 155 of Tract No. 1237, between Lot Nos. 149 and 150 of Tract No. 1237, between Lot Nos. 129 and 130 of Tract No. 1237, and between Lot Nos. 118 and 119 of Tract No. 1237 in Corona Highlands; and direct the City Clerk to have the Resolution recorded in the office of the County Recorder. Mayor Ridgeway opened the public hearing. Hearing no testimony, Mayor Ridgeway closed the public hearing. Volume 55 - Page 277 INDEX Planning (68) Ord 2002 -12 Non - exclusive Solid Waste Collection Franchise/ Trojan Portable Services (42) Res 2002.49 Vacation of Water Easements/ Corona Highlands (90) City of Newport Beach City Council Minutes July 9, 2002 INDEX The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 13. HOAG MEMORIAL HOSPITAL PRESBYTERIAN (PA2002 -038) — Ord 2002 - ONE HOAG DRIVE — REQUEST TO AMEND THE HOAG PA2002 -038 MEMORIAL HOSPITAL PRESBYTERIAN PLANNED COMMUNITY Hoag Memorial. (PC -38) DEVELOPMENT CRITERIA AND DISTRICT Hospital REGULATIONS PERTAINING TO FLOOR AREAS THAT APPLY Presbyterian/ TOWARDS THE ESTABLISHED MAXIMUM DEVELOPMENT Planned Community ALLOCATION. THE APPLICANT SEEKS TO EXEMPT FLOOR Development Text AREAS THAT ARE USED TO HOUSE STRUCTURAL SYSTEMS, Amendment 2002 -001 MECHANICAL EQUIPMENT OR ARE OTHERWISE NOT (68) REGULARLY OCCUPIED. Council Member O'Neil declared a conflict of interest since his law firm does legal work for the hospital. Without objection, it was the consensus of Council to consider Agenda Item No. 14 out of order. O. CONTINUED BUSINESS 14. LIBRARY BOARD OF TRUSTEES VACANCY. Library Board of Trustees Motion by Council Member O'Neil to confirm the nomination of (24) Theresa Chase and Cecilia Flanagan made by the Ad Hoc Appointments Committee for the current vacancy on the Library Board of Trustees. The motion carried by the following roll call vote: Ayes: Heffernan, O Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None N. PUBLIC HEARINGS — Continued 13. HOAG MEMORIAL HOSPITAL PRESBYTERIAN (PA2002 -038) — Ord 2002 - ONE HOAG DRIVE — REQUEST TO AMEND THE HOAG PA2002 -038 MEMORIAL HOSPITAL PRESBYTERIAN PLANNED COMMUNITY Hoag Memorial (PC -38) DEVELOPMENT CRITERIA AND DISTRICT Hospital REGULATIONS PERTAINING TO FLOOR AREAS THAT APPLY Presbyterian/ TOWARDS THE ESTABLISHED MAXIMUM DEVELOPMENT Planned Community ALLOCATION. THE APPLICANT SEEKS TO EXEMPT FLOOR Development Text AREAS THAT ARE USED TO HOUSE STRUCTURAL SYSTEMS, Amendment 2002 -001 MECHANICAL EQUIPMENT OR ARE OTHERWISE NOT (68) REGULARLY OCCUPIED. Volume 55 - Page 278 City of Newport Beach City Council Minutes July 9, 2002 INDEX Planning Director Temple stated that the City currently has a provision that allows an exemption of up to 10% of the floor area of any building to provide mechanical support. She explained that this was done as a way of encouraging that the mechanical equipment be placed within buildings and not installed on roofs. She reported that, when the hospital began developing its plan, it discovered there would be a lot of mechanical spaces and basements. She stated that it is staffs belief that the intent of the 1992 Council was to provide for a certain amount of hospital use and added that it might be appropriate to consider an amendment that would allow an exemption greater than the 10% in the zoning code. Ms. Temple noted that Council was provided with plans that illustrate the types of areas that would be excluded. She explained that part of the project is totally subterranean and houses the base isolation unit which is part of the seismic foundation of the building. She added that the principal amount of the other parts of the floor area are in an interstitial level (third floor) which houses electrical, mechanical, and computer equipment and equipment needed to support the monitoring and computer and telecommunications infrastructure of the hospital. She stated that there are other minor spaces that would be excluded under the new amendment. Regarding the building envelopes on the lower campus where the new administrative support service buildings are located, she indicated that various height limits were established to address view planes for residents who live above the campus. She reported that the heights range from 25 to 47 feet and would accommodate about two to four floors. Council Member Glover stated that she was on the Planning Commission when the City Council voted on this and did not know that a tremendous amount of traffic would be going through Newport Heights because of it. She reported that the hospital is using neon lights on the parking lot and expressed her disappointment that the City allowed this. Ms. Temple stated that the City does not typically specify the lighting type or style. Council Member Heffernan asked if the massing of the building is changed if the mechanical area is not counted towards the square footage. Ms. Temple confirmed that the widths and heights are not being changed tonight; however, individual buildings were not plotted in the original approval. She stated that the City established building heights and setbacks, and indicated that the new buildings will still need to conform. She noted that the actual square footage would be far below what would fill the envelope established in the Planned Community (PC). In response to Council Member Proctor's questions, Ms. Temple stated that the City does accommodate for mechanical spaces in all commercial buildings and that, due to the unique characteristics of the hospital and its needs that were not known at the time the original development standards were adopted, it could justify this type of consideration. She added that earthquake regulations have altered how hospitals are designed. She confirmed that the hospital generates less traffic than originally projected in the Environmental Impact Report (FIR) and believed they will be staying within their parameters since they were not adding any traffic generating areas. Mayor Ridgeway opened the public hearing. Volume 55 - Page 279 City of Newport Beach City Council Minutes July 9, 2002 INDEX Phil Bias, 230 Lille Lane, President of the Villa Balboa Community Association, stated that he has been on the board for 13 years and was a part of the group that worked on the Planned Community Development Regulations. He noted that the regulations stipulated a maximum square footage for the upper and lower campuses of about 1.3 million square feet. He believed that Hoag now wishes to exempt out all its mechanical spaces which would raise the allowable square footage by at least 130,000 square feet. He indicated that they are mostly concerned about the lower campus because it affects their quality of life and views. He stated that the maximum building envelopes may not change; however, the building coverage would be increased which means that buildings would occupy more of the site. He noted that the upper campus floor area ratio (FAR) is 1.0 and the lower campus FAR is .65, but it is essentially increased if the square footage is increased. He stated that the association opposes this until they receive more information. In response to Council Member Adams's question, Mr. Bias indicated that he was unable to attend the Planning Commission meeting so there was no representation from Villa Balboa. Regarding Mr. Bias' comments, Ms. Temple agreed that there may be more of a building footprint on the upper and lower campuses. She stated that the building envelope was established to protect the views of the public walkways above and that it will still be respected. She indicated that they base their traffic generation on numbers related to actively used areas of the hospital and believed that it would not substantially alter the findings of the original EIR or the Phase II traffic study. Public Works Director Badum stated that he needs to look at the document closer to determine the intent, but it seems there will not be additional traffic generated. In response to Council questions, Ms. Temple reported that the FAR of the actively used parts of the hospital does not change and indicated that this is why they can find it consistent with the General Plan. She indicated that the original agreement and PC text laid out floor area estimates for various uses and did not have a line item for mechanical equipment. Ms. Temple confirmed Council Member Adams' statement that there is no question that there is going to be more floor area if this is approved and, therefore, more traffic. He asked what the benefit is to the community by approving this. In response to Mayor Ridgeway's questions, Ms. Temple reported that Phase I has 156,000 square feet on the lower campus and almost 500,000 on the upper campus. She stated that the City approved an additional 68,000 square feet in Phase II on the lower campus and 275,000 square feet on the upper campus. She indicated that Phase I is built out and that tonight's request will help support part of Phase I and Phase II, and also affect Phase III. Mayor Ridgeway asked if they will ask for the same dispensation if the other phases are not built. Ms. Temple believed they would, but noted that they would not need to amend the PC again. She stated that there are long term implications and that it is not easy to predict how much it represents because other types of hospital buildings may not require the same amount of mechanical equipment that the intensive care facilities on the upper campus require. Mayor Ridgeway believed that the City does not have a full picture since it does not have an analysis of Phase II. Volume 55 - Page 280 City of Newport Beach City Council Minutes July 9, 2002 INDEX Mayor Pro Tem Bromberg expressed concern about the massing and asked about the long term consequences since this may be setting precedence for future Councils. He stated that he would like to know more about the impacts this will have on the Villa Balboa community. Motion by Mayor Pro Tern Brombera to continue the item. Council Member Glover stated that everyone thought this was a good faith project; however, they are coming back and asking for more. Mayor Ridgeway stated that this is an unusual circumstance due to the basement isolator, but he is not sure there is a burden. Council Member Adams noted that it was stated that the traffic generation for the hospital is less than what was identified and believed that this means there is some idea of what the traffic generation is for the hospital. He stated that Council can be given an estimate on the number of vehicles a day there would be if this was approved and if it was not approved. He noted that the hospital is an essential part of the community and provides a critical service, but Council has received complaints that people have been turned away from the emergency room. He stated that he needs to know how critical this decision is to those capacity issues. Council Member Adams indicated that he can see the City exempting the isolators, but questioned the need to exempt all the mechanical areas. He believed that there may be a middle ground so this is not so onerous. Referencing page 6, Council Member Proctor stated that the traffic engineer concluded that the proposal would not require additional traffic analysis because the hospital would not be housing any new employees or patients and, therefore, not generating additional trips. He added that the staff report indicates that, after Phase II and prior to Phase III, the trip issue may need to be reevaluated. He expressed confusion that now he is hearing that additional traffic will be generated. He requested that staff address this when it comes back to Council. Pete Foulke, Executive Vice President of Hoag Hospital, stated that he understands that it is difficult for Council to make a decision with less than total information; however, Council will not get the total impact because they do not know what they are building yet. He indicated that it could increase the massing, but will not increase the usable square feet that they originally planned to build. He reported that the State put substantial burdens on them in its seismic regulations and noted that the isolator which takes up a whole floor was not originally considered. He explained that they are trying to get back to what was anticipated as the usuable square footage. He stated that the benefit to the community is additional health care services. In response to Council questions, Mr. Foulke stated that they hope to expand the emergency room in the next phase. He stated that he can guarantee that residents can go to Hoag's emergency room; however, he cannot guarantee how fast they will get in. He reported that he cannot exclude people from using the emergency room because that is against the law and the emergency room is open to the public. He stated that they do not turn anyone away and triage patients the best they can. He reported that they are going through the planning process to determine how much Volume 55 - Page 281 City of Newport Beach City Council Minutes July 9, 2002 INDEX they tlunK they will need in terms of beds, emergency room space, the heart program, and the cancer program. He requested that Council not postpone this for too long because it impacts what they are able to plan. He believed that the needs analysis could be done in about two months. Mayor Ridgeway stated that they need to accelerate the needs analysis, especially relative to emergency room facilities, and bring back Phase II requirements to the best of their ability prior to Council voting on this. He indicated that he is sympathetic to the issue but needs more information. He stated that people in the area need to be notified. Mr. Foulke stated that people in the area were notified and that the hospital talked to the neighbors. Council Member Adams stated that he can understand the hospital's case for the structure systems since the codes changed after the entitlement was given, but he questioned why they did not anticipate or address the other mechanical equipment. Mr. Foulke reported that the seismic requirements increased the thickness of the walls and the bracings. Further, the hospital requires a lot more mechanical/elevator space than a normal building. Council Member Adams asked if it requires more equipment today than it did yesterday. Mr. Foulke responded that it probably does not. Council Member Adams believed that the request is overreaching. Mr. Foulke indicated that they would look at the numbers for the seismic areas and stated that, if that is exempted, they may be very close to the 10% number. John Chamberlain, Villa Balboa resident, stated that he attended the Planning Commission meeting. He reported that, after the project is done, there will be an excess of 350,000 square feet available for the hospital to grow even after they do the proposed project. He suggested that someone from the City contact the Fire Marshall who has been working with the residents on the fire road at the heart center because of improper and illegal parking. He noted that the hospital has to have valet parking to keep the fire lanes clear. He stated that this is increased traffic that was not supposed to happen when they put in the center. He indicated that they were told at the Planning Commission meeting that there would be no changes in the footprint at this point in time. He applauded Council for wanting more information. Discussion ensued as to when this item should be brought back to Council. Assistant City Manager Wood believed that this could come back at the August 13, 2002, Council meeting. She stated that, based on Council Member Adams' and Mr. Foulke's comments, it looks like there may be a solution. Mayor Pro Tem Brombere agreed to continue this item to the August 13 Council meeting. The motion carried by the following roll call vote: Ayes: Heffernan, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: O Neil Absent: None Volume 55 - Page 282 City of Newport Beach City Council Minutes July 9, 2002 P. MOTION FOR RECONSIDERATION - None. Q. ADJOURNMENT - 10:30 p.m *,r�,�,�xxrhxx x *�,xxx*srex��xea,� x:rxar The agenda for the Regular Meeting was posted on July 3, 2002, at 2:45 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 283 INDEX