HomeMy WebLinkAbout20 - Council Policy Manual Update• CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 20
April 13, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, Assistant City Manager
949/644 -3002 or dkiff @city.newport- beach.ca.us
SUBJECT: Council Policy Manual Update for 2004 and Public Meeting to Consider
City's Statement of Investment Policy (Policy F -1)
RECOMMENDATION:
Approve the proposed revisions or additions to the Council Policy Manual:
-- Revisions to B -1, B -2, B -3, B -5, B -7, B -8, B -14, B -16, F -1, F -2, F -3, F -4, F -11, F -13,
• F -14, F -16, F -19, F -22, F -23, G -6, H -1, K -1, K -3 and;
-- Addition of F -24
DISCUSSION:
Background:
This agenda item contains two parts:
• Part I — The annual review of the City Council's Council Policy Manual (with
recommended changes to or additions of 24 separate policies); and
• Part II — The annual affirmation of the City's Statement of Investment Policy (Council
Policy F -1) as required by California law.
Part I -- Policy Manual Review. Council Policy D -3 directs the City Council to review the
more than 100 policies in the Council Policy Manual annually. These policies exist to
instruct the Council and City staff on how to process a variety of different issues -- from
airport and annexations to voice mail and water service outside the City limits.
This year, the 24 policies proposed for change or for addition are summarized in
Attachment A. Many of the proposed changes are minor and are NOT all summarized
below. Noteworthy changes include the following:
E
Council Policy Manual Update for 2004
April 13, 2004
Page 2
•
Statement of Investment Policy (F -1)
Regardless of changes, this policy needs to be re- certified by the City Council every
year, and we accomplish that as part of this process. We also routinely ask our
Investment Advisers to review the Policy each year and recommend changes. They
almost always provide valuable input, usually due to a subtle change in law or
regulation; or as a result of new or refined investment vehicles. The only proposed
change this year involves the limiting parameters defining permitted Commercial Paper
investments. The net substantive impact of the change will be minimal, but the wording
needs to be revised to bring our Policy more in line with current rating standards and
terminology.
Reserves /Designation of Fund Balance (F -2)
The recommended changes in this policy are in three areas. First, the nature of the link
between Stabilization Reserves and the fluctuations in market value of investments is
described in more detail. Second, a Designated Reserve is established within the Tide
and Submerged Lands Fund to act as the repository for funds the City is setting aside to
deal with the expense of abandoning oil wells when they are no longer economically
productive. Based on the estimated life spans of the wells, a certain amount of money
is budgeted into this Reserve each year to deal with this eventual expense. Third,
certain Reserves (primarily Accounting Reserves) which had previously only been
described within the General Fund have also been included in the Water and
Wastewater Enterprise Funds.
Budget Adoption and Administration (F -3)
There are three recommended changes to this Policy as well. The first recommends
language that will set forth City Policy concerning posting of transactions as abatements
of revenues and expenditures. In short, this is an accounting practice that should be
used on a v ery I imited a nd s elective b asis. T he s econd p roposal a dds a p aragraph
describing policy for the financial administration and budgeting of Special Assessment
Districts. Third, language is added that will extend the limit of authority of the City
Manager to approve changes to Public Works projects under certain urgent situations.
Among other things, the Policy revision calls for City Council notification and convening
a special meeting if a Council Member so desires.
Ackerman Trust (F -16)
The changes proposed for this Policy are fairly substantial. Intermediate transactions
have now been completed, and the City's procedures for administering the funds in the
Trust have matured. The thrust of the modifications to the Policy is to establish annual
fiscal procedures and expenditure limits which will insure the long -term viability of the
Trust. The actual calculation is a bit complex, involving the five -year moving average of
annual earnings, but, in short, the rules provide that annual spending for scholarships
and library support will be limited to actual earnings less inflation. The inflationary
portion of earnings will be added to the principal amount. This insures that funds in the
Trust will increase so as to remain constant with the economy in relative magnitude.
Council Policy Manual Update for 2004
April 13, 2004
Page 3
•
Policy for Collections and Write -offs of Accounts Receivable F -24
This is a proposed new Policy. The Administrative Services Director establishes
specific procedures for collections and the write off of accounts determined to be
uncollectible (for accounting purposes). Actual practice in this area is also reviewed, to
some degree, as part of the City's audit process. However, a City Policy establishing
overall guidelines and parameters for this function is appropriate.
General Plan (K -1)
This amendment would alter the process for starting a General Plan Amendment to
more closely reflect that for amendments to the Zoning Code. It would:
1. Provide for the City Council to initiate amendments to any part of the General Plan,
as the existing policy; and
2. Provide for property owners to apply for an amendment to the land use designation
or development limit for their property, without first receiving approval from the
Planning Commission and City Council.
This is a change from the current procedure for property owners, which requires an
initiation request to be considered by the Planning Commission and City Council before
• any applications can be received. Staff is suggesting these changes for the following
reasons:
1. The process is very cumbersome because it requires a substantial amount of time
(including consideration by both Planning Commission and City Council), and very
few proposals have not been initiated;
2. The process is not mentioned nor required by either California State planning law or
the General Plan Guidelines;
3. The City Attorney's Office concurs with changing the procedure to insure due
process for property owners.
Implementation Procedures for CEQA (K -3)
The California Environmental Quality Act (CEQA) includes establishment of several
exemptions from its provisions. These are Statutory Exemptions, Categorical
Exemptions and General Rule Exemptions. Statutory and Categorical Exemptions are
defined within the CEQA Guidelines. Qualification for General Rule Exemption is "when
it can be seen with certainty that there is no possibility that the activity in question may
have a significant effect on the environment..." Agencies such as the City are
encouraged to establish General Rule Exemptions within local implementation
guidelines or procedures.
A number of discretionary decisions defined as projects under CEQA, which are very
minor in nature and involve no development or any change in the physical environment,
• do not fall with the other exemption types, and warrant qualification under the General
Council Policy Manual Update for 2004
April 13, 2004
Page 4
0
Rule Exemption. Staff recommends that the City policy on the implementation of CEQA
be amended to include a list of General Rule Exemptions, such as:
1. Minor changes to the Municipal Code which do not authorize physical development;
2. Minor changes to public infrastructure such as installing trees; replacing or upgrading
streetlights, traffic signals, etc; and other public improvements of a minor nature;
3. Administrative City actions such as budget amendments, professional services
agreements, etc. which do not involve projects which affect the physical
environment.
Part II -- Affirmation of City's Investment Policy. Following the County of Orange's
bankruptcy in late 1994, the State Legislature adopted SIB 564 (Johnston) which
requires each local agency to consider its Statement of Investment Policy (the City
Council's Policy F -1) annually at a public meeting. The law reads as follows:
Government Code § 53646 -- (a) The treasurer or chief fiscal officer
shall annually render to the legislative body of the local agency and any
oversight committee a statement of investment policy, which the
legislative body of the local agency shall consider at a public meeting.
Any changes in the policy shall also be considered by the legislative
body of the local agency at a public meeting.
The Council's review of this policy at a public meeting (the April 13, 2004, City Council
Meeting) completes this obligation. is
Prepared by:
Dave i , Assistant City MEYnager
Attachments: A — Summary of Proposed Council Policy Changes
B — Council Policies — Strikeout and Underline Versions
(except F -24, which is new)
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•
PARK FEE POLICY
PURPOSE
r:Di
The City of Newport Beach maintains an extensive park and open space system. The
acquisition and development of our park and open space properties is funded, in part,
through the payment of park fees paid by persons or entities who subdivide properties.
The Subdivision Map Act requires park fees to be used only for the purpose of
developing new or rehabilitating existing neighborhood or community park or
recreational facilities to serve the subdivision that paid the fees. The City is required to
develop a schedule specifying how, when and where the park fees will be used. The
purpose of this Policy is to establish the criteria to be used in deciding which facilities
serve subdivision residents and schedule whereby park fees are properly and timely
committed to appropriate projects.
POLICY
A. Service Criteria.
The Recreation and Open Space Element of the General Plan states that
community parks and view parks serve the entire City. Community parks are
those with improvements such as community buildings, parking, swimming,
facilities for picnicking, active sports and other facilities that serve a larger
population. Neighborhood parks which include unique recreational facilities,
such as basketball courts, tennis courts, turf areas, active sports fields,
community buildings, unique play areas or view parks are also considered City-
wide resources used by all citizens. Accordingly, park fees generated by any
subdivision within the City may be used to develop new or rehabilitate existing
community parks, view parks, and those neighborhood parks listed on Exhibit
A.
The Recreation and Open Space Element divides the City into 11 services areas
consisting of relatively discrete residential communities. These service areas
were created for the purpose of determining whether particular geographical
areas were deficient in terms of park and recreational facilities and to identify
acquisitions or improvements which would provide residents with greater
recreational opportunities. Accordingly, park fees generated by a subdivision
within any services are may be used to create new, or rehabilitate, existing park
or recreational facilities within that services area and as provided in the
Recreation and Open Space Element.
1
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B. Implementation Schedule.
Park fees shall be placed in the General Fund immediately upon receipt with a
special designation as Park Fees. These funds, after special designation, shall be
used solely for the acquisition or establishment of new, or the rehabilitation of
existing, park, open space and recreational facilities. The park fees shall also be
placed on a schedule that lists the location of the subdivision, the fees paid, the
date on which the fees were paid or the date on which building permits had been
issued for 1/2 of the lots created by the subdivision (whichever occurs later), the
service area within which the subdivision is located, the neighborhood park,
recreation and open space facilities eligible for park fees generated by that
subdivision, the date on which the park fees must be committed to specific
project of improvements. The park fees shall be used only for the park and
recreation facilities identified in the Recreation and Open Space Element and
shall be utilized in accordance with the policies and standards specified in the
General Plan. Designations for expenditures will be made as part of the annual
budget adoption.
[Attachment - Exhibit A]
Adopted - June 27,1994
Amended - April 23, 2002
Reassigned - April 8, 2003
Formerly I -1
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EXHIBIT A
PARK DEDICATION POLICY
PARKS GUIDE
The following view parks serve as citywide resources by reason of their unusual beauty
and the view provided:
Bayview Park
Jasmine View Park
Begonia Park
Kings Road Park
Channel Place Park
Lido Park
Cliff Drive Park
Lookout Point
Corona del Mar State Beach Park
Newport Island Park
Ensign View Park
Peninsula Park
Galaxy View Park
Rhine Wharf Park
Inspiration Point
West Jetty View Park
Irvine Terrace Park
Westcliff Park
• Castaways Park
•
The following Community and Neighborhood Parks serve as citywide resources by
reason of the unique recreational opportunities they offer:
Arroyo Park - Lighted multi - purpose field, basketball court, picnic areas and
playground.
Bonita Canyon Sports Park -- (Ai+ic-ipated ehexing r ^^ T Four youth
baseball fields, one multi - purpose field, one soccer field, tennis courts, basketball
court and connecting trail to Arroyo Park.
Bonita Creek Park - Community center, lighted softball and multi - purpose field,
and basketball court.
Buffalo Hills Park - Basketball court, baseball/ softball diamond, volleyball court,
multi - purpose fields.
Carroll Beek Community Center and Balboa Island Park - Basketball court and
community center.
3
B -1
Community Youth Center /Grant Howald Park - Basketball court, tennis courts,
community center, softball and multi - purpose field.
Eastbluff Park - Baseball diamond, multi- purpose field, and view of the Back
Bay.
Harbor View Nature Park - Natural vegetation area.
Las Arenas Park - Lighted tennis court and basketball court.
Lincoln Athletic Center - Gymnasium, lighted baseball/ softball diamond and
multi - purpose fields.
Mariners Park - Multi- purpose room, baseball/ softball facilities, racquetball
courts, lighted tennis courts, multi - purpose fields, and an ADA equipped play
area.
The Oasis Center -
Multi- purpose senior facility
with classrooms and large
multi - purpose room.
0
Peninsula Park - Beach sited multi - purpose field, picnic and barbecue facilities,
baseball/ softball diamond and gazebo.
San Joaquin Hills Park - Tennis courts and lawn bowling facility.
San Miguel Park - Ball diamond, athletic field, four racquetball courts, basketball
court and an ADA equipped play area.
Theater Arts Center - Ninety seat community theater.
West Newport Park - Tennis courts, racquetball courts, basketball court.
38u' Street Park - Basketball courts.
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INSTRUCTIONAL RECREATION ACTIVITIES
HIM
The instructional recreational programs for children and adults provided by the
Recreation & Senior Cem}xunit�Services Department will be conducted on the basis of
being at least self- supporting. An amount equal to at least 25% of the costs incurred
will be set aside for administrative overhead. Registration fees will be based on an
amount sufficient to acquire independent contractors, class materials and the
administrative overhead and a facility use fee. Occasionally, it may be necessary to
conduct a specific class in which revenues are not sufficient to be self- supporting.
However, each total recreation program, such as tennis, sailing, surfing, etc., will be at
least self- supporting.
A sum of money equivalent to 20% of the gross annual revenues derived from the
instructional classes in surfing shall be set aside and used for the purpose of purchasing
new or replacement surfboards or development of surf related activities.
A total of 20% of the registration fees from tennis instructional classes shall be set aside
annually for refurbishment or development of courts or development of new
recreational programs or facilities.
The Recreation & Senior Gemnvanity-Services Director or designee is authorized to
enter into agreements for securing independent contractors for approved instructional
recreation activities. A total of 20% of the registration fees from the sailing instructional
classes and 100% of the proceeds from the agreement for the use of the 29th Street
public dock shall be set aside annually for refurbishment and replacement of the
recreation sail boat fleet and development of waterfront activities program
Adopted - October 1963
Amended - August 30,1966
Amended - November 25,1968
Amended - March 1970
Amended - April 12,1971
Amended - August 9,1971
Amended - February 14,1972
Amended - March 13,1972
I*
Amended - November 11, 1974
Amended - March 24,1975
Amended - December 8,1975
Amended - November 27,1978
Amended - November 28,1988
Reassigned - January 24, 1994
Amended - February 27,1995
Amended - December 14,1998
Amended - May 8, 2001
Amended - April 8, 2003
1
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CO- SPONSORED EVENTS
The Recreation & Senior Eenuntinity Services Department maywill -- accept co-
sponsorship of events when one of the following criteria is met:
A. The City solicits the co- sponsor.
B. The co- sponsor solicits the City by completing an application for review by the
Parks, Beaches and Recreation Commission. Applicants shall be required to
satisfy the Department's self- supporting nature by sharing profits.
C. Co- sponsored events or programs that are not self- supporting shall be subject to
being approved by the annual budget process that would appropriate funds for
the activity.
Adopted - July 22,1991
Amended - January 24,1994
Reassigned - April 8, 2003
• Formerly I -14
Formerly I -3
• 1
OASIS SENIOR CENTER OPERATION AND RELATIONSHIPS
In today's era of limited resources, support groups have formed to render essential
assistance, both in time and money, to worthwhile public programs and facilities. In
the contest of a philosophy which encourages people to help themselves in their leisure
pursuits, the Recreation & Senior Services Department is committed to a
cooperative effort to provide senior programs and services at the Oasis Center. The
Department welcomes volunteer support and intends by this policy to identify the
relationship, roles and control between the City of Newport Beach and Friends of
OasiSOASIS.
FACILITY USE AND SCHEDULING
A. The City, through the Recreation & Senior Eommunit),-Services Department, is
responsible for determining priorities of use and overall scheduling of the OASIS
Oasis- Senior Center.
B. Senior - citizen activities shall have priority of use, in accordance with Council
Policy B =1315, Public Use of City Facilities.
C. The senior- citizen programs at the Oasis -OASIS Senior Center are cooperative
efforts of the Recreation & Senior G-ey- Services Department and the
Friends of OasisOASIS; as Department programs -- and in consideration of the •
significant volunteer contribution by the Friends of Oasis- OASIS -- facility use
fees are not appropriate.
D. Planning and coordination of activities at the Oasis -OASIS Senior Center will be
done by the Senior Services staff, with input from the Friends of Oasis -OASIS
Board.
E. The Department maintains a master calendar for the Oasis -OASIS Senior Center;
use by other Department programs and outside groups will be handled by
Department staff as specified by Council Policy B- 131-5, Public Use of City
Facilities.
PROGRAMMING AND ADMINISTRATION
A. The Senior Services Manager is responsible for day -to -day operation of the
OASIS Senior Oasis- Center.
B. Within the context of cooperation, programming decisions will be made jointly
by the Senior Services Manager and the Friends of Oasis -OASIS President.
C. The Senior Services Manager and Friends of Oasis-OASIS President shall be ex- •
officio members of each Friends of Oasis -OASIS Committee.
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D. The Senior Services Manager will be an ex- officio member of the Friends of Basis
0 OASIS Executive Committee and the Board of Directors.
E. Any improvement or physical change of the Oasis OASIS Senior Center must
have advance approval by the Cemtu— Recreation & Senior Services
Departmen Director.
FINANCIAL
A. The City is responsible for financing the Oasis-OASIS Senior Center operation
only to the extent of the annual City Council approved budget.
B. Equipment, services and financial contributions provided by the Friends of Oasis
OASIS are welcome and are in keeping with the cooperative philosophy.
C. Friends of OasisOASIS shall maintain accurate records of all finances. A copy of
all Friends of Oasis OASIS financial reports will be forwarded to the amity
Recreation & Senior Services Department.
D. Fund raising or activities that provide private monetary gain must comply with
Council Policy B =41-4, Commercial Uses In Public Parks.
E. A total of 10% of the rental fees collected from the public use of facilities at Oasis
1 OASIS Senior Center shall be set aside annually for equipment replacement
and /or required refurbishments at Basis -OASIS Senior Center.
INSURANCE
The Friends of Basis -OASIS shall provide evidence of adequate insurance coverage as
determined by the City.
Adopted - January 21, 1980
Amended - November 28,1988
Amended - January 24,1994
Amended - May 8, 2001
Amended - April 23, 2002
Reassigned - April 8, 2003
Formerly I -17
Formerly I -5
�1
PA
SPECIAL EVENT PERMIT REQUEST PROCESSING
PURPOSE
IMAK
To set forth City policy concerning administration and control of special events. Special
events include activities as defined by Municipal Code Chapter 11 section 11.039.
Requests that include activities for which the Municipal Code requires that a permit be
obtained may be included in the special event permit process.
POLICY
It is the policy of the City Council to ensure that the numerous special event activities
permitted by the City do not negatively affect the community, that requests for permits are
efficiently processed by staff, that City liability is eliminated, that all appropriate insurance
requirements are met, and that costs for municipal services provided are kept at a
reasonable level and recovered from the event sponsors. Affected City departments shall be
notified of special event permit requests in accordance with the schedule attached and
provide recommendations on how to conduct the event safely, lawfully and with a
minimum negative impact on the community.
It is the responsibility of the Recreation & Senior Services Director to coordinate the
administration of special events and to be the central contact point for residents or other
event sponsors, as well as the various City Departments having influence or control
over aspects of any given event. Requests for special event permit applications will be
received by a special event coordinator in Recreation & Senior Services and routinely
routed to appropriate departments for investigation. Each department will investigate
the proposed event and make a recommendation for approval or denial of the event. If
recommended for approval, recommended conditions for approval will also be
presented.
Events that include the following activities or aspects shall be additionally reviewed by
the departments indicated:
Activi
Fireworks
Tents & Canopies
Reviewing Department
Fire Department
Police Department
City Manager
Fire Department
Building Department
1
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Requests on the Harbor
Harbor Resources Division
Sheriff's Harbor Department
Requests on the Balboa Pier
Public Works
Requests on McFadden Plaza
Public Works
Requests on the Newport Pier
Public Works
Requests on Public Beaches
Harbor Resources Division
General Services
Fire Department
Requests in a Public Park
Recreation & Senior Services
Department,
General Services
Requests to Deviate from Use Permit
Planning Department
Requests at a Commercial Location
Planning Department
Garage Sales
Planning Department
Signs & Banners on Private Property
Planning Department
Signs & Banners on Public Property
Public Works
Amplified Sound at a Commercial Location
Planning Department
Amplified Sound at a Residential Location
Police Department
Temporary Street or Sidewalk Closures
Public Works
General Services
Sidewalk Sales
Public Works
Use of Public Property
Risk Manager
•
Public Food Service
Health Department
ij
B -7 0
Use of Back Bay Drive Department of Fish & Game
General Services
Public Works
If each department reviewing a special event permit application recommends approval
of issuance of the permit, a permit will be issued to the applicant listing the conditions
provided by each department. The City Council shall authorize approval of any
request for special event permit when:
A. Required by Municipal Code.
B. When a Level 3 Special Event Permit has been denied and the applicant chooses
to appeal the denialn^^ or. mare reviewing departments reEenunend denial.
Adopted - January 24, 1994
Amended - February 24,1997
Amended - May 8, 2001
Amended & Reassigned - April 8, 2003
Formerly I -7
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BIKE, FOOT RACE AND SURF CONTEST POLICY
The purpose of this policy regarding the use of City streets and beaches for conducting
bicycle races, running events, surf contests and other athletic contests is to minimize the
inconvenience to City residents, and to eliminate any potential City liability for injuries
resulting from the event. All bicycle races, running events, surf contests and similar
athletic contests shall be required to secure a Special Event Permit, comply with all of
the conditions to the permit, and comply with the provisions of this Policy. Races,
running events and other athletic contests using City streets shall not be conducted
during the summer (June 15 through September 15). No more than twelve (12) such
events shall be permitted during any calendar year and not more than four (4) in one
g_eoplaphical area in one year. Surf contests using City beaches shall not be conducted
during Memorial Day weekend or summer (June 15 - September 15). No more than
eight (8) large and /or commercial events shall be permitted during any calendar year
and events shall be scheduled at least three (3) weeks apart.
All Surf competitions, no matter what the size, are required to register with the
Recreation & Senior Services Department a minimum of one month prior to the
scheduled event in order to receive approval for use of the requested location. There is
no fee for registration of a surf competition, only for the Special Event Permit, if needed.
All responsible parties must be able to provide upon request proof of a valid
registration approval during the hours of the surf competition.
The person or entity primarily responsible for administering the event must prove their
ability to pay for all required City safety and maintenance services prior to issuance of
any permit. Proof of ability to pay for these services shall be in the form of a cash
deposit, bond, or similar instrument. The permittee shall, prior to the event, provide
the City with evidence of insurance, with the City named as an additionally insured,
with minimum coverage of one (1) million dollars per occurrence unless the City
Attorney and City Manager determine that due to the circumstances surrounding the
event, more insurance coverage is necessary.
No permit shall be issued for any race, running event, surf contest or athletic contest
which is sponsored or financially supported by a tobacco or alcohol company and no
alcohol or tobacco shall be permitted to be dispensed or available in the event there are
participants under the age of 21.
Surf contest permits will be granted for specific dates only. No more than one surf
contest will be scheduled per day. Surf contest permits do not allow for the exclusive
use of the ocean or contest area and are always subject to blackball rules and
1
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B -8
regulations. There can only be a maximum of six (6) large and /or commercial contests •
at any one location per calendar year. The Fire Department determines acceptable
locations for surf contests.
Adopted - February 14,1983
Amended - November 14,1983
Amended - September 22,1986
Amended - January 24,1994
Amended - July 25, 2000
Amended & Reassigned - April 8, 2003
Formerly I -21
Formerly 1 -8
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:-
TEMPORARY SIGNS WITH SPONSORSHIP RECOGNITION
IN CITY PARKS AND BEACHES
Temporary signs which recognize sponsorship of City sponsored or co- sponsored
sports programs may be posted in a City park or beach when the signage complies with
the criteria set forth in this policy. The PiK-Eter- of—tli-e- Recreation & Senior Services
Director Department will require that sponsorship signs meet the following guidelines
and that any other approvals which may be required are obtained:
A. The signage must relate to a program sponsored or co- sponsored by the City of
Newport Beach.
B. The signage must:
1. Not exceed twenty -four (24) square feet in size;
2. Be posted in a location not visible from public streets and pre- approved
by the Recreation & Senior Services Department;
3. Be posted only during the designated priority season for that sports
group;
4. Be aesthetically appealing, with consideration for the surrounding area.
C. No signage for alcohol or tobacco is permitted.
D. The applicant is responsible for placement and removal of signage and for
storage, damage, theft, or loss of any sign posted.
Adopted - September 14,1998
Amended & Reassigned - April 8, 2003
Formerly I -26
• 1
MAXIMIZING PUBLIC ACCESS TO CITY PARKS
The purpose of this policy is to maximize access for the general public to the parks of
the City of Newport Beach. As steward of the coastal parks and beaches, the City
Council establishes the following guidelines for reserved use of those City parks in high
traffic areas:
A. Reservations for the use of Inspiration Point and Lookout Point; anti -P insula
P-a3 -k shall be permitted only during the non -peak tourist season, specifically the
period after the Labor Day weekend in September to, but not including,
Memorial Day weekend in May:
B. Groups of more than 20 attendees or participants may not reserve the following
view parks at any time:
Ensign View Park
Galaxy View Park
Inspiration Point
Lookout Point
C. Reservations for use of City park areas can only be made through the City, with
payment fees established by resolution of the City Council.
D. The Part: Patrol Program undertakes Git- '-e>I4NL kkvpoFt-' )each-- ks-i11- 11ntk- ri-ake -a -[lie
program of public of the rules and regulations for
the use of all City parks, especially those of high use and during the peak
summer season . l his -t e t t ei- tal<ei ; , CC le cam; m posi
E. Exceptions to this policy shall only be events co- sponsored by the City of
Newport Beach, such as the Corona del Mar 5K Race, and for events at Penin;ala
Pa4:1- or Galaxy View Park approved through the Special Event Permit process.
Adopted - February 26, 2002
Reassigned - April 8, 2003
Formerly I -28
11
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STATEMENT OF INVESTMENT POLICY
PURPOSE
F -1
To set forth the City's policy concerning the investment of temporarily idle funds. It is
the policy of the City to invest funds not required for immediate expenditures.
Investments will be in compliance with governing provisions of law and the policy
contained herein. Primary investment goals are security of principal, adequate liquidity
maintenance, and yield, in that order. Investments shall be placed only in securities as
outlined below. The balance between various investment instruments may change in
order to provide the City with the best combination of yield, liquidity, and a
consideration for other factors, such as placement of an appropriate percentage of
available investment funds locally. It shall be the main responsibility of the City
Council, in adopting this policy and reviewing the investment holdings on a monthly
basis, to preserve the investment principal.
INVESTMENT AUTHORITY
• Under the direction of the City Manager, the investment authority has been delegated
to the Director of Administrative Services, who is responsible for administration of the
City's investment program, and who shall thereafter provide a monthly report
regarding the status and changes in the City's investment portfolio to the City Council.
This authority shall be renewed annually as part of the review and update of this
Policy. In addition to the monthly investment report that is submitted to the City
Council, the Administrative Services Director shall provide more detailed investment
information to the City Council as requested. The City Council shall be briefed directly
by the City's investment advisors on a quarterly basis whenever possible.
Sections 53600 -53601 of the California Government Code provide basic investment
limits and guidelines for government entities. In the event an apparent discrepancy is
found between this policy and Sections 53600 - 53601, the more restrictive parameters
will take precedence.
FINANCIAL INSTITUTIONS
The City shall not deposit funds with any financial institution not receiving a minimum
overall satisfactory rating for meeting the credit needs of California Communities in its
most recent evaluation ( §53635.2).
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LIQUIDITY
Sufficient funding to accommodate at least two- week's projected cash outflow is to be
maintained in immediately available investments, such as the State Local Agency
Investment Fund, maturing certificates of deposit, or similar liquid instruments. An
analysis of cash flow must be conducted at least weekly to serve as the basis for
determining appropriate maturities for investments. At no time shall the liquid cash on
hand be less than 5 percent of the City's total investment portfolio. For purposes of this
policy, cash on hand includes all cash and investments accessible within 48 hours.
ACCEPTABLE INVESTMENT INSTRUMENTS
The following are types of investments made by the City and the guidelines for
investing in each. In all cases, investments shall be made in the context of the "Prudent
Man" rule, spelled out in the California Government Code, Section 53600.3 as follows:
"When investing, reinvesting, purchasing, acquiring, exchanging, selling,
or managing public funds, a trustee shall act with care, skill, prudence,
and diligence under the circumstances then prevailing, including, but not
limited to, the general economic conditions and the anticipated needs of
the agency, that a prudent person acting in a like capacity and familiarity
with those matters would use in the conduct of funds of a like character
and with like aims, to safeguard the principal and maintain the liquidity
needs of the agency. Within the limitations of this section and considering
individual investments as part of an overall investment strategy, as
authorized by law."
In this light, the City of Newport Beach does not purchase or sell securities on margin.
Additionally, any institution, which holds either the collateral or the investment
instruments themselves in safekeeping for the City, must maintain at least one billion
dollars ($1,000,000,000) in assets.
A. Certificates of Deposit
Only fully collateralized certificates of deposit with FDIC insured institutions
will be utilized in investment of City funds. Government securities having a
market value of 110 percent of the total amount of investment are acceptable as
collateral. Noncollateralized CD investments may be made in amounts less than
$100,000 so long as they are fully insured by the FDIC.
C.
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Not more than 10 percent of the City's investment portfolio shall be invested in
certificates of deposit with any one institution. CD's will not be placed for a
period of longer than one year. Further, an institution must meet the following
criteria to be considered by the City:
1. The institution must maintain at least $1 billion in assets ($100 million for
fully insured CD's of $100,000 or less).
2. The institution must have been in business at least three years.
3. The institution must have a net worth to asset ratio of at least 6 percent.
4. The institution must place and maintain on file with the City an audited
financial statement not more than one year old.
5. Interest shall be paid to the City on a monthly basis.
• B. Negotiable Certificates of Deposit
As a matter of policy, the City invests in Negotiable Certificates of Deposit only
with U.S. Banks whose underlying securities are rated A -1 or P -1 by one of the
top two rating agencies and having assets in excess of $10 billion, so as to insure
security and a large, well - established secondary market. Ease of subsequent
marketability is further ascertained prior to initial investment by examining
currently quoted bids by primary dealers and the acceptability of the issuer by
these dealers. No one issuer shall exceed more than 10 percent of the portfolio,
and maturity shall not exceed one year. The California Government Code
Section 53601 limits investment in negotiable certificates of deposit to 30 percent
of the portfolio.
C. Bankers Acceptances
The City may invest only in Bankers Acceptances issued by the 100 largest banks
in the world, which are eligible for purchase by the Federal Reserve System, the
short term paper of which is rated at the highest category by Moody's and
Standard & Poor's. In the case of foreign banks, the Bankers Acceptances must
be written by their U.S. branches. Maximum maturity shall be 180 days. No
more than 30 percent of the City's overall investment portfolio shall be placed in
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Bankers Acceptances, with no more than 10 percent of the City's portfolio
invested in the banker's acceptances of any one commercial bank.
D. U.S. Treasury Issues
The City may invest in treasury notes, bills and bonds. Maximum maturity of
any U.S. Treasury issue shall be five years.
E. Federal Agency or United States Government- SRonsored Enterprise Obligations
Securities of Federal Agencies and Fedefal instfumentalifies
Securities of this type that are acceptable for the City's investments are Federal
National Mortgage Association, Federal Home Loan Bank notes, Federal
National Mortgage Association notes, Federal Farm Credit Bank notes, — Federal
Home Loan Mortgage Corporation notes, or any other U. S. Government Agency
security.
F. Commercial Paper
The City may only invest in commercial paper of "prime" quality with the •
highest ranking or of the highest letter and number rating as provided for by a
nationally recognized statistical- rating organization (NRSRO). The entity that
issues the commercial pier shall meet all of the following conditions in either
paragraph (1 ) or paragraph (2) issued by large, exceptionally , ell ,.,..bushed
firms (firms with assets greater than $1billien and t4eir subsidiaries) ga ,.zed
.,a .. t: il, vi.- .:.e... with al, highest TR,,ed ' ca..ndard .P_ er
Poor's rating (A imp
1) The entitv meets the following criteria: (A) Is organized and
operating in the United States as a general corporation. (B) Has total assets
in excess of five hundred million dollars ($500,000,OOO). Q Has debt other
than commercial paper, if any, that is rated "A" or higher by a nationally
recognized statistical- rating organization.
(2) The entity meets the following criteria: (A) Is organized within the
United States as a special purpose corporation, trust, or limited liability
company. (B) Has program wide credit enhancements including, but not
limited to, over collateralization, letters of credit, or surety bond. (C) Has
commercial paper that is rated "A -1" or higher, or the equivalent, by a
nationally recognized statistical- rating organization.
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Commercial paper shall be used solely as a short -term investment not to exceed
270 days. No more than 25 percent of the City's portfolio may be invested in
commercial paper. Investment in commercial paper of any one issuer shall not
exceed 10 percent of the portfolio.
G. Repurchase Agreements ( Repos) and Reverse Repurchase Agreements
Repos and reverse repos shall be used solely as a short -term investment not to
exceed 30 days. The institution from which the City purchases a Repo must
deliver adequate collateral to the City's safekeeping account (either directly or
through a third party safekeeping agent), consisting of U.S. Treasury or Agency
securities at the rate of 102 percent of the face value of the repo. The amount of
this collateral must be sufficient to compensate for fluctuating market conditions.
Repos will only be purchased from Primary Dealers.
The City must own assets for more than 30 days before they can be used as
collateral for a reverse repurchase agreement. No more than 10 percent of the
portfolio can be involved in reverse repos.
H. Passbook Savings Accounts
Savings accounts may be used as a repository for customer deposits, or for
similar purposes. Consistent with the requirements for CD investments, funds
deposited in savings accounts must either be FDIC insured or collateralized.
I. Local Agency Investment Fund (LAIF) (State of California)
State Regulation of LAIF is set forth in California Government Code Section
16429.1. The current limits on any one City investment in this fund is $40
million, and the number of transactions (deposits or withdrawals) is limited to 15
per month. The City's participation in LAIF shall conform to State Regulation.
In general, it is the City's intention to use investment in LAIF as a temporary
repository for short -term funds needed for liquidity purposes. The
Administrative Services Director shall maintain on file appropriate information
concerning LAIF's current investment policies, practices and performance; as
well as its requirements for participation, including, but not limited to,
limitations on deposits or withdrawals and the composition of the portfolio.
J. County Investment Funds
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Los Angeles County provides a service similar to LAIF for municipal and other
government entities. This Fund is available to certain cities outside of Los
Angeles County, including Newport Beach. Investment in this pool is intended
to be used as a temporary repository for short -term funds used for liquidity
purposes. At no time shall more than 5 percent of the City's total investment
portfolio be placed in this Pool. The Administrative Services Director shall
maintain on file appropriate information concerning the county pool's current
investment policies, practices and performance; as well as its requirements for
participation, including, but not limited to, limitations on deposits or
withdrawals and the composition of the portfolio.
The City shall not invest funds with the Orange County Pool.
K. Medium Term Corporate Bonds /Notes
Investments of this type will only be in corporations rated AA or better by
nationally recognized rating services. Maximum term to maturity for individual
securities shall not exceed four years. No more than 30 percent of the City's
investment funds shall be placed in securities of this type. .
L. Mortgage- backed Securities and Asset - backed Securities
Investments in securities of this type are limited to mortgage- backed pass -
through securities issued by a US government agency; or consumer receivable
pass - through certificates or bonds. Securities eligible for investment under this
subdivision shall be issued by an issuer having an "A" or higher rating for the
issuer's debt as provided by Moody's Investor Services and S &P. The security
itself shall be rated in a rating category of "AAA" or its equivalent or better by
Moody's Investor Services and S &P. The maximum final stated maturity of any
security of this type shall be five years. No more than 20% of the City's
investment funds shall be placed in securities of this type.
M. Municipal Bonds
Municipal bonds rated AAA, or AA and insured, are acceptable investments for
the City. Not more than 15 percent of the portfolio shall be in investments of this
type.
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N. Money Market Funds
The City may invest in Money Market Funds subject to the following constraints.
Investment in these funds is primarily intended for short -term "sweep account"
purposes, not for longer -term investments.
1. Shares of beneficial interest issued by diversified management companies
that are money market funds registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 (15 U.S.C. Sec.
80a -1.)
2. The company shall have met either of the following criteria:
a. Attained the highest ranking or the highest letter and numerical
rating provided by not less than two nationally recognized
statistical rating organizations.
b. Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than ten years' experience managing money market mutual
funds with assets under management in excess of one billion
dollars ($1,000,000,000).
3. The purchase price of shares of beneficial interest purchased shall not
include any commission that the companies may charge.
4. No more than 20 percent of the City's investment portfolio shall be
invested in money market funds.
5. The City shall invest only in Money Market Funds that have a policy of
maintaining a constant daily net asset value per share of $1.00.
PROHIBITED INVESTMENTS
Consistent with California Government Code 53601.6, inverse floaters, range notes,
mortgage derived interest -only strips, or any security that could result in zero interest
accrual if held to maturity are specifically prohibited, except to the extent that they are
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shares of diversified management companies registered under the Investment
Company Act of 1940.
The City shall not purchase any security rated Al and or A+ or below if that security
has been placed on "credit watch" for a possible downgrade by either Moody's Investor
Services or Standard and Poor's.
Investments not specifically approved by this policy are prohibited.
ASSET/ INVESTMENT MANAGEMENT AGREEMENTS
The City may employ the services of asset/ investment management companies. Such
companies must have a history of producing no losses and relatively high net returns.
They must also be well established and exceptionally reputable. Members of the staffs
of such companies who will have primary responsibility for managing the City's
investments must have a working familiarity with the special requirements and
constraints of investing municipal funds in general and this City's funds in particular.
They must contractually agree to conform to all provisions of governing law and the
collateralization and other requirements contained herein. At no time shall more than
30 percent of the City's total investment portfolio be placed in any one investment
management account. In order to implement this requirement, the City's portfolio
assets will be reallocated annually among its investment managers.
SAFEKEEPING /THIRD PARTY CUSTODIANS
All cash and securities in the City's portfolio, including those that are being managed
by private sector asset/ investment management companies, shall be held in
safekeeping in the City's name by a third party bank trust department, acting as agent
for the City under the terms of a custody agreement executed by the bank and the City.
The City will contract separately with major banks or other well - established, reputable
financial institutions, which provide custodial services to maintain custody of cash and
securities in the City's portfolio. In the case of a major financial institution, the City
may have an asset/ investment management relationship, and a custodial relationship,
with the same entity. However, the services must be provided by separately managed
departments within that entity, and the City's assets must be held in the City's name
completely separate and distinct from the assets of the institution and from all other
portfolios managed by the institution.
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All securities will be received and delivered using standard delivery versus payment
(DVP) procedures, the City's safekeeping agent will only release payment for a security
after the security has been properly delivered. The only exception to the foregoing shall
be depository accounts and securities purchases made with: (i) local government
investment pools; and, (ii) money market mutual funds, since the purchased securities
are not deliverable.
BOND PROCEEDS
The investment of bond proceeds will be made in accordance with applicable bond
indentures.
RATING AGENCY CHANGES
In the event a security held by the City is the subject of a rate drop which brings it
below accepted minimums specified herein, or the security is placed on negative credit
watch, where downgrade could result in a rate drop below acceptable levels, the
• investment advisor who purchased the security will immediately notify the
Administrative Services Director or Deputy Director of that fact. The course of action to
be followed will then be decided on a case by case basis, considering such factors as the
reason for the rate drop, prognosis for recovery or further drop, and market price of the
security. The City Council will be advised of the situation and intended course of
action by e -snail or fax.
REPORTING REQUIREMENTS
In addition to the Monthly Investment Report, the City Council and City Manager shall
receive a detailed quarterly listing of all investments in the City portfolio. The report
must show the type of investment, issuer, date of maturity, par and dollar amount of
deposit/ investment, and rate of interest. Quarterly reports from outside investment
managers must also include market valuation of assets under their management and
the source of that valuation, and shall also include a statement of compliance with
investment policy. Current ratings of non - government securities, either Moody's or
Standard & Poor's, will be included.
In his report to Council, the Director of Administrative Services shall include a
statement denoting the ability of the City to meet its expenditures for the next six
months, and shall also include a statement of compliance with investment policy for
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assets under his direct management. In addition, the City Council shall be notified
whenever 5 percent or more of the total portfolio is invested, withdrawn, or moved
from one Investment Advisor or Pool to another.
Adopted - April 6,1959
Amended - November 9,1970
Amended - February 11, 1974
Amended - February 9,1981
Amended - October 27,1986
Rewritten - October 22,1990
Amended - January 28,1991
Amended - January 24,1994
Amended - January 9,1995
Amended - April 22,1996
Corrected - January 27,1997
Amended - February 24,1997
Amended - May 26,1998
Reaffirmed - March 22,1999
Reaffirmed - March 14, 2000
Amended & Reaffirmed - May 8, 2001
Amended & Reaffirmed - April 23, 2002
Amended & Reaffirmed - April 8, 2003
Amended & Reaffirmed - XXXXX, 2004
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RESERVES/ DESIGNATIONS OF FUND BALANCE
PURPOSE
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To establish City Council policy for the administration of financial reserves and fund
balances.
DISCUSSION
A. Background. Prudent financial management dictates that some portion of the
funds available to the City be reserved for future use. Future uses are
categorized as either pre - planned projects or unforeseen financial emergencies.
For clarification, the City also has a number of Special Revenue Funds. These
Funds are somewhat similar to reserves in that they act as a repository for money
that can only be used for specific purposes. Reserves are generally distinguished
from Special Revenue Funds in that decisions regarding the purpose and /or the
amounts to be set aside, as well as the circumstances for use, normally fall within
• the authority of the City Council. That authority normally rests largely with an
external entity in the case of Special Revenue Funds.
B. Structure and Funding of Reserves. This Policy establishes Reserve Accounts or
designated Fund Balance levels for moneys being held in reserve. In addition,
the sources and eventual use of Reserve Funds are set forth.
It is the policy of the City Council that each Reserve identified herein is to be
fully funded as part of the annual budget process. If operational or other
considerations require the City Council to temporarily override this policy
during any fiscal year, the City Manager will recommend to the City Council a
plan to restore any Reserves falling below required minimum levels. Reserve
levels will be restored as soon as practical, but in not more than 5 years.
Each of the City's fiscal reserves is established and maintained for one of four
purposes listed in general order of importance below. If the reserve
requirements of this policy are unmet in any fiscal year, the City Manager will
recommend funding prioritization to the City Council as part of the Budget.
Use of Reserves. The City Council decides whether to appropriate funds from
Reserve Accounts. Even though a project or other expenditure qualifies as a
proper use of Reserves, the Council may decide that it is more beneficial to use
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current year operating funds or bond proceeds instead, thereby retaining the
Reserve funds for future use. Reserve Funds will not be spent for any function
other than the specific purpose of the Reserve Account from which they are
drawn without a separate City Council Resolution approving that specific action.
Information regarding Annual Budget Adoption and Administration is
contained in City Council Policy F -3.
C. Categories of Reserves.
1. Accounting Reserves. Generally accepted governmental accounting
practices require identification of generic reserve funds for certain
purposes. These accounts represent the unspendable portions of fund
balance, such as inventories and long -term receivables, as well as funds
that are legally restricted by some external source, such as debt service
reserves and encumbrances. Reserving funds for a contract awarded in
one year but not completed until a succeeding year is one example of an
accounting reserve for encumbrance.
2. Contingency Reserves. Contingency Reserves represent funds for
unexpected financial emergencies. One example requiring the use of this
Reserve is the adverse impact of natural disasters such as earthquake or
flooding on revenue availability, as well as increased demand for City
services. Other examples are unexpected loss or reduction of a key
revenue source; special projects, programs, or price changes mandated by
another government entity; and emergency capital projects needed to deal
with unforeseen structural failure.
3. Designated Reserves. These Reserves are designated for known or
anticipated events. Such events require large, non - recurring financial
outlay, such as the replacement of systems and equipment or major capital
improvements.
4. Stabilization Reserves. Stabilization Reserves enhance the orderly
management of the Operating Budget by stabilizing revenues and
expenditures, which fluctuate beyond the ability of City staff to control or
predict. One example is the annual change in retirement contribution
rates mandated by the Public Employee Retirement System (PERS). Other
examples are changing prices for utilities and fuel, market value
adiustment for investment earnings, ands° w ate volatility in certain
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special program funding. These Reserves provide stability by "smoothing
out" year -to -year volatility in the City's finances.
FUNCTION AND ADMINISTRATION OF RESERVE ACCOUNTS
Reserves are identified below by fund, category and specific function. The specific
numbers of accounts where these Reserves are physically located change from time to
time as the overall account structure is updated and modified. However, the Fund
Balance Statement, which is available for ready reference in the City's Annual Budget
document, identifies balances, past -year activity, and projected current year activity for
each of these Reserves.
A. General Fund.
1. Accounting Reserves.
a. Reserve for Inventories. The value of inventories purchased by the
City but not yet issued to the operating Departments is reflected in
• this account.
b. Reserve for Debt Service. Funds are placed in this Reserve at the
time debt is issued. The provisions governing the Reserve are
established in the Bond Indenture, and the Reserve itself is
controlled by the Trustee.
C. Reserve for Long Term Receivables. This Reserve is used to
identify and segregate that portion of the City's financial assets
which are not due to be received for an extended period, so are not
available during the budget year.
d. Reserve for Encumbrances. This Reserve accommodates spending
for contracts or other items, which are legally committed but not
expended by fiscal year end.
2. Contingency Reserve. This Reserve has a target balance of not less than
ten percent (10 %) of annual General Fund expenditures. The City Council
authorizes expenditures from this Reserve.
1 Designated Reserves.
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a. Capital Improvement. Generally accepted governmental
accounting practices do not provide for the depreciation of assets of
Governmental Funds such as the General Fund. Therefore, special
procedures are required to set aside money (a "sinking fund ") for
replacement or renovation of fixed assets such as, but not limited
to, City Hall and Police Department buildings, Fire Stations, and
Library Branches.
The Capital Improvement Reserve will accumulate funds only for
infrastructure items financed through the General Fund.
Infrastructure assets of Enterprise Funds, as well as those of
Governmental Fund, for which non - general fund money is
available, are not components of this Reserve. Funds from this
Reserve are restricted to replacement or acquisition of periodic,
major projects or improvements typically exceeding 0.7 percent
(0.7 %) of the annual General Fund Operating Budget (not including
capital projects). Projects for which this Reserve is intended
generally have the effect of extending the useful lives of
infrastructure items.
The City Manager will update the status of items of the General
Fund infrastructure inventory on an annual basis. Included as part
of the City Manager's budget proposal will be a plan to fund this
Reserve at a level of not more than one hundred percent (100 %) of
the replacement cost of each asset by the year in which replacement
is anticipated.
b. Senior Citizen Site. This Reserve is established by Council Policy
I -5, which specifies that ten percent (10 %) of revenue collected from
rental of facilities at the Oasis Center be set aside for equipment
replacement and /or refurbishment at the Center.
C. Park Fees. This Reserve contains Park Fees collected' by the
construction permit process. Use of Park Fees is governed by
Council Policy I -1, which limits their expenditure to park, open
space, and recreational facilities.
d. Off Street Parking. Newport Beach Municipal Code 12.44.025
establishes this Reserve and governs its administration. Fifty
percent (50 %) of parking meter revenue collected in designated
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areas is set aside for acquisition, development, and improvement of
off street parking facilities within those areas.
e. Paramedic Pro rg am (Hoag). This Reserve was established by the
City in conjunction with debt issuance agreements with Hoag
Hospital. In addition to the original amount(s) deposited to this
reserve, effective July 1, 2000, any excess revenues generated by
this program, after accounting for General City Overhead of fifteen
percent (15 %), shall be deposited to this reserve account for future
paramedic related purposes, to a maximum of $250,000. Funds in
this reserve account may be used for any paramedic related
purpose as directed by the City Council. Target level for this
reserve is twenty-five percent (25 %) of the annual budget for
operations and capital expenditures.
f. Recreational Instruction Reserve. City Council Policy I -2
establishes reserves for surfboard replacement and refurbishment,
development of tennis courts, and development of new recreational
• activities. The Policy requires twenty percent (20 %) of gross annual
revenues derived from specified recreational classes be set aside.
g. In Lieu Parking Reserve. This Reserve is established by NBMC
12.44.125. The City requires commercial businesses to provide
adequate off - street parking. In some cases where this is not
possible, businesses are afforded the opportunity to pay an annual
fee and use parking spaces in a municipal lot, providing such a lot
is located within specified proximity to the business. This Reserve
is the repository for these fees. Special purposes of the use of these
funds have not been established by the City Council.
h. Park In Lieu Reserve. This Reserve was established by NBMC
19.52. The City requires dedication of land or payment of fees for
park or recreational purposes in conjunction with residential
development. When fees are paid, the funds are placed in this
Reserve. Specific guidance regarding use of the funds is contained
in 19.52.030 and 19.52.070.
L Neighborhood Enhancement Reserve A. This Reserve was
established by NBMC 12.44.027, which directs that Revenues from
parking meters in Zone 9 shall be apportioned to this Reserve.
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Funds in the Reserve will then be used for the purpose of
enhancing and supplementing services to the West Newport area.
Both the nature of the supplemental services and the definition of
the area served are set forth in the Code Section above.
Neighborhood Enhancement Reserve B. This Reserve is almost the
same as Reserve A above. The difference is that this Reserve
pertains to the Balboa Peninsula, and it specifies that fifty percent
(50 %) of the parking meter revenue will be apportioned to the
Reserve. Specific details are contained in the Code Section.
k. Ocean Front Restoration Reserve. In the early 1990's, it was
discovered by survey that improvements to several ocean front
parcels were encroaching onto the public beach. The encroachment
was relatively minor. The negotiated solution was for the property
owners to pay a permit fee each year to the City. Revenue thus
generated may only be used for ocean front restoration projects and
incidental costs of improvements and maintenance to enhance
public access and use of ocean beaches as approved by the City
Council. This Reserve is the repository for those funds. City
Council Policy L -12 contains additional background and details
about the encroachment issue. NBMC 12.44.027 establishes this
Reserve Account, governs its administration, and defines areas in
and purposes for which funds in the account may be spent.
Other Designated Reserves. The Administrative Services Director
may add additional designated reserves as required. This will
normally be done in response to new programs or policies
established by the City Council or another government entity
providing funds to the City. Examples are the Oil Spill Recovery
Reserve and the Public Library Fund Reserve.
4. Stabilization Reserves.
a. General Fund Stabilization Reserve. This Reserve has a target
balance of two percent (2 %) of the budgeted expenditures within
the General Fund. Each year, the City Manager will analyze
uncontrollable revenues and expenditures. When expenditures are
required from this Reserve, the City Manager will note the reasons
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in the preliminary and final budget. The Stabilization Reserve may
have subdivisions.
b. Reserve for Appropriations. This is a temporary repository for
funds not yet fully appropriated in the annual budget. It is
normally used during the budget process to set aside funds for
known or strongly anticipated expenses that will need to be
addressed by budget amendment during the budget year.
Sometimes the dollar amount and /or appropriate account
breakdown for such expenses cannot be specifically identified at
the time the budget is adopted, even though the funds will be
needed. In such cases, the funds will normally be budgeted to the
Reserve for Appropriations.
C. Change in Fair Market Value of Investments. As dictated by GASB
31, the City is required to record investments at their fair value
(market value). This accounting practice is necessary to insure that
the Citv's investment assets are shown at their true value on the
• balance sheet. However, in a fluctuating interest rate environment,
this practice ef—recordirgs n market value gains or losses
which may never be actually realized-. avA 1n any case it causes
the gains or losses to be recorded well ahead of actual cash flows
Therefore, although actual cash investment earnings may be
relatively stable, investinent income recorded on the City's books
will often be artificially volatile.
From a budgeting standpoint actual cash investment earnings
should be considered as available for the annual budgeting rop cess
whereas market value fluctuations should not. Therefore in order
to mitigate any such adverse budgetaryimpact, the City records
two Stabilization Reserves related to Market Value fluctuation:
Reserve for Prior Year Unrealized Market Value Gains: This is a
known value that will be reserved annually during the City's
closing process since the early recognition of investment earnings
will reduce the investment earnings potential in the new year.
(Target Balance = to Prior Year MV Gain)
Reserve for Potential Current Year Market Fluctuation: This is a
• defensive reserve that may be utilized to avail resources during the
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next budgeting cycle if interest rates rise sharply relative to the
investment portfolio's current stated return. (Target should be 2%
of General Fund's position in total Investment portfolio).
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d-d. PERS Rate Reserve. This Special Subdivision of the Stabilization
Reserve has been established for the specific purpose of helping to
smooth out (for internal budgeting purposes) the year -to -year
fluctuations in PERS rates. PERS rates have been one of the most
volatile and unstable elements on the expense side of the City's
annual budget process. The long -term goal is to budget the normal
cost of PERS rates, setting aside the extra money in this Reserve
when actual rates are below that level. Conversely, when actual
rates are above that level, funds from this Reserve can be drawn
upon. At this writing (2003) significant PERS rate increases in the
out years are anticipated. Therefore extra funds will be placed in
this Reserve, subject to availability.
B. Tide and Submerged Land Fund. Within this Special Revenue Fund, a- special
Designated Reserves haves been created.
Upper Newport Bay Restoration Reserve. This reserve is the repository for funds
mandated by S13573, as well as special fees charged to permit holders as an
alternative to meeting certain specified mitigation criteria. In addition to the
• F -2
mitigation fees, 10% of Beacon bay lease revenue is placed in this Reserve. Funds
in the Reserve are designated for Upper Newport Bay restoration projects.
L J
Oil and Gas Designated Reserve. This designation was established by the City
with the intent to build a reserve that will provide funding to abandon wells and
facilities as they go out of service. Annually, $40,000 will be set aside from the oil
and gas field production revenues to fund this reserve.
C. Permanent Endowment Fund (Robinson Skinner Annuity). Similar to the above
Fund, there is a Designated Reserve within this special purpose Fund.
The Newport Bay Dredging Reserve (Robinson - Skinner Annuity. This Reserve
is the repository for the Robinson- Skinner Annuity funds. In general, the
endowment specifies that the principal amount will not be depleted, but that
investment earnings may be used for dredging projects in Newport Bay.
D. Water Fund.
(City Council Policy L -20 contains additional information concerning budgeting
and rate setting within the Water Fund.)
1. Accounting Reserves. The same four Accounting Reserves identified in
the General Fund will also be used in the Water Fund.
1-2. Contingency Reserve.
Water System Reserve. This Reserve is used for emergency repair to the
water system. The target level for this Reserve is thirty-five percent (35 %)
of the annual budget for operations.
23. Designated Reserves.
Future Water Infrastructure Reserve. This Reserve is used for large
designated projects that are part of the water distribution system. System
replacement/ upgrade and most improvement/ major maintenance
projects are funded within that amount. However, certain large -scale
projects are projected on a ten -year horizon, which is updated and refined
each year. The purpose of this Reserve is to set aside partial funding for
those projects in advance.
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Included as part of the City Manager's annual budget proposal will be a
plan to fund this Reserve at a level of not more than one hundred percent
(100 %) of the projected cost of planned projects by the year in which
contract award is anticipated. Projected future costs notwithstanding, a
minimum of ten percent (10 %) of the annual budget for operations will be
set aside to this reserve each year. The City Council must approve the
ultimate fund transfer from this Reserve to a designated Water Enterprise
Fund Capital Project Account as part of the Budget process.
No new funds will be added to Designated Reserves unless Contingency
and Stabilization Reserves are fully funded.
-34. Stabilization Reserve.
Water Rate Stabilization Reserve. This Reserve is used for water rate or
fee stabilization to offset large expenditures changes such as water
purchase, energy or treatment costs. The intent of the Reserve is to
provide funds to offset cost increases that are projected to be short - lived,
thereby partially eliminating the volatility in annual rate adjustments. It is
not intended to offset ongoing, long -term pricing structure changes. The •
target level of this reserve is twenty -five percent (25 %) of the annual
budget for operations. Funds will be set aside only if target Contingency
Reserve level is met. The City Council must approve use of these funds,
based on City Manager recommendation. See also City Council Policy L-
20.
Change in Fair Market Value of Investments. This Reserve will be used in
the Water Fund in the same manner it is used in the General Fund.
E. Wastewater Fund.
1. Accounting Reserves. The same four Accounting Reserves identified in
the General Fund will also be used in the Wastewater Fund.
4-2. Contingency Reserve.
Wastewater System Reserve. This Reserve is used for emergency repair to
the Wastewater system. The target level for this Reserve is seventy
percent (70 %) of the annual budget for operations.
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23. Designated Reserve.
Future Wastewater Infrastructure Reserve. This Reserve is used for large
designated projects that are part of the City's Wastewater system. Funds
are reserved for large -scale future projects, which cannot be
accommodated within the annual budget of the year in which they are
planned. In the years prior to estimated contract award, the City
Manager's budget proposal will include a plan to set money aside in this
Reserve sufficient to accumulate not more than one hundred percent
(100 %) of the projected cost of such projects. Projected future costs
notwithstanding, a minimum of ten percent (10 %) of the annual budget
for operations will be set aside to this reserve each year. The City Council
must approve the ultimate fund transfer from this Reserve to a designated
Wastewater Enterprise Fund Capital Project Account as part of the Budget
process.
34. Stabilization Reserve.
Wastewater Rate Stabilization Reserve. This Reserve is used for
wastewater rate or fee stabilization to offset large expenditure changes
such as energy or operational costs. The intent of the Reserve is to
provide funds to offset cost increases that are projected to be short - lived,
thereby partially eliminating the volatility in annual rate adjustments. It is
not intended to offset ongoing, long -term pricing structure changes. The
target level of this reserve is twenty -five percent (25 %) of the annual
budget for operations. Funds will be set aside only if target Contingency
Reserve level is met. The City Council must approve use of these funds,
based on City Manager recommendation. See also C:,.., Couiacil Policy r
2&
Change in Fair Market Value of Investments. This Reserve will be used in
the Wastewater Fund in the same manner it is used in the General Fund.
F. Internal Service Funds.
Internal Service Funds receive moneys from departmental operating budgets.
There are two Internal Service Funds: the Equipment Maintenance and
Replacement Fund, and the Insurance Reserve Fund.
. One of the functions of Internal Service Funds is to act as reserve accounts.
11
F -2
1. Equipment Maintenance and Replacement Fund. The Equipment
Maintenance and Replacement Fund receives operating moneys from the
Departments to provide equipment maintenance and to fund the regular
replacement of major pieces of equipment (mostly rolling stock) at their
economic obsolescence.
a. Equipment Maintenance Account. In order to provide adequate
funds for unexpected extraordinary costs due to damage or
mechanical failure to a large piece of equipment, five percent (5 %)
of the total annual budget for equipment maintenance is retained in
the Fund.
b. Equipment Replacement Account. Departmental operating funds
are charged amounts sufficient for the replacement of rolling stock
in accordance with Council Policy F -9. Equipment replacement
needs vary from year to year; therefore the year -end Fund balance
will fluctuate. It will increase substantially in the years preceding
major purchases or when an unusually large percentage of the fleet
is scheduled for replacement. The City Manager annually
determines and adjusts the rates for collection of funds from the
Departments based on pricing, future replacement schedules, and
other variables.
2. Insurance Reserve Fund. The operating budgets of City's Departments
are charged for Liability, Workers' Compensation, and Compensated
Absences.
a. Liability and Workers' Compensation Accounts. These accounts
each serve three purposes:
Payment of insurance premiums;
Payment of the deductible (self - insured retention) for liability or
workers' compensation claims;
Reserve for future claims.
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i. Collection of Funds. Each year, the City Manager will
determine and adjust the internal collection rates from the
Departments.
ii. Short Term Expenditures. The Budget will account for
projected expenditures during the coming year.
iii. Future Costs. Money will be set aside each year to
accommodate projected long -term cash outflow. The annual
funding level will be sufficient to offset the estimated cost of
known claims. Resolution of most claims falls within a
three -year window. At this time, the target fund balance
each year is eighty percent (80 %) of the estimated overall
liability for known or anticipated claims, based on the City's
general experience in the past.
3. Compensated Absences Fund.
a. Background. Employee benefits such as accumulated flex leave,
vacation leave, and sick leave, have a cash value. Accounting
practices require that the book value of the City's compensated
absences liability reflect the cash outflow as if all absences were
cashed out immediately. Much of this cash outflow will never
occur, since the benefits will be taken in the form of time off, rather
than cash. Additionally, the cash outflow could occur all at once
only if the City dissolved and made full payment for all
accumulated leave amounts.
The largest portion of leave -to -cash conversion is at an employee's
retirement. That amount can be estimated with reasonable
accuracy.
b. Policy and Practice. The City will fund an appropriate amount, but
not the entire long -term book liability, for compensated absences.
i. Each year, the City Manager will project the amount of
expected short -term cash liability for compensated absences
and budget expenditures from the Compensated Absences
• Account.
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ii. The City Manager will establish a target closing balance that
will fund not less than twenty -five percent (25 %) of the long-
term liability for compensated absences.
4. Retiree Medical Fund Reserve. The City has established a special program
whereby medical insurance costs of its retirees are partially offset by
limited contributions from the City and members of the active duty
workforce. In addition to covering each year's required costs on a "pay as
you go' basis, a special Reserve has been established for the long -term
accumulation of money to offset the unfunded liability of this program.
The City contributes $20 per full -time active employee per month to this
Reserve, and each full -time active employee contributes $10 per month.
This Reserve is the repository for these long -term accumulation funds.
Money in this Reserve is not to be used to partially offset annual costs of
the program at any time until the unfunded liability of the program is
fully covered by the balance in the Reserve. At that point, funds in the
reserve may be depleted for use in paying annual expenses, or replenished
each year if inadequate, depending on the status of the unfunded liability.
The goal is for the balance in the Reserve to cover the unfunded liability
on an ongoing basis.
Adopted -January 24,1994
Amended - April 10, 1995
Amended - April 27,1998
Amended - March 14, 2000
Amended - May 8, 2001
Amended - April 23, 2002
Amended - June 10, 2003
Amended - XXXXX. 2004
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BUDGET ADOPTION AND ADMINISTRATION
PURPOSE
F -3
To establish the policy for the preparation, adoption, and administration of the City's
Annual Budget.
POLICY
identify and separately budget and account for revenues and expenditures
However, in some cases the Administrative Services Director may determine
that certain funding coming in to the City is more properly reflected as
abatement to an expense than as revenue; or that certain expenditures of funds
are more properly reflected as abatements to revenue than as expenses The
Accounting h4,aaagerDivision will keep note of all such entries and maintain
the ability to separately identify the component transactions Examples of
transactions where such recording is often appropriate are earnings on
compensating balances, which directly offset the City's expenditures for
banking services; and credit card12rocessing charges which decrease actual
revenue received.
B. Organization and Development of the Annual Budget. Each year the City shall
prepare and adopt, by formal Resolution, an annual budget as required by the
City's Charter and as provided for in the City's Budget Instructions.
The Annual Budget is published in three volumes, the Resource Allocation Plan
(RAP), the Budget Detail and the Capital Improvement Program (CIP). The RAP
provides an overview of each department's mission, functions, statistical
information, and budget. It also provides summary information regarding the
Capital Improvement Program, as well as summary information for budgeted
and historical overall City revenues, expenditures, and fund balances. The
Budget Detail contains line by line information regarding operating expenditures
for the prior year, current year and budget year. The CIP document provides a
summary of current and future planned projects, basic descriptions of each
project, the funding source and the scope of work to be performed.
The City programs expenditures into four classifications. These are Salaries and
Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures.
Capital Expenditures are subdivided into Capital Outlay, which is generally
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used for items of operating equipment or other purchases in excess of $500, and
Capital Projects, which generally deal with Public Works related improvements
for a distinct and identifiable purpose and function. Policy guidelines regarding
budgeting for upkeep and improvement of City buildings are as follows.
• Cleaning, maintenance, and minor repair expenses are funded within
departmental Maintenance and Operations budgets. This includes
janitorial, limited painting, and routine electrical, plumbing, and minor
structural repairs.
• Most capital eauipment outlays are also budgeted at the
ins), carpet replacement, and electronic equipment.
• Building expenditures that are for a more substantial and relatively
infrequent purpose are funded as Capital Improvement Projects above the
departmental level. These include such items as roof replacements,
significant plumbing and /or electrical upaades, or remodels involving
structural changes.
Budgeted Expenditures for all four classifications are aligned in the Budget
Documents by Department Budget Units, which usually coincide with Operating
Divisions within the City's organizational structure; and, separately, by Capital
Projects. Therefore within each Division Budget, there will be sections for
Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital
Outlay.
During December of each year, the Administrative Services Department shall
prepare preliminary fund balance estimates for the current year and preliminary
revenue estimates for the next fiscal year. In January of each year, the
Administrative Services Department shall prepare a budget calendar and issue
budget instructions and expenditure detail to each department for use in
preparation of the next year's City budget. Included in these instructions will be
budget guidelines and appropriation limits for each department. These
guidelines will be developed by the Administrative Services Director and
approved by the City Manager. In accordance with City Council Policy F -2
(Reserves/ Designations of Fund Balance), the status and possible changes in
Reserve Accounts shall be addressed as part of this process.
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After submission of revenue and expenditure appropriation requests by each
department, the Administrative Services Department shall summarize the
requests for review by the City Manager and Department Heads. After review
by the City Manager and Department Heads, the Administrative Services
Department shall prepare the City's proposed budget for the next fiscal year and
shall submit said proposed budget to the City Council. Thereafter, the City
Council shall hold as many budget study sessions as it deems necessary. Council
budget study sessions shall be recorded. All proposed Council changes in the
City Manager's proposed budget shall be added to a budget checklist.
Subsequent to Council review and prior to its final adoption, the City Manager
shall provide each Council Member with an itemized list of all proposed changes
to permit a roll call vote by the City Council on each item during a Council
meeting.
The City Council shall hold a budget hearing and shall adopt a budget on or
before June 30 as required by the City Charter.
B. Administration of the Annual Budget. During the budget year, Department
Heads and their designated representatives may authorize only those
expenditures that are based on appropriations previously approved by City
Council action, and only from accounts under their organizational responsibility.
In addition, budget expenditures may only be authorized in the year
appropriated. Any unexpended appropriations, except valid encumbrances,
expire at fiscal year end unless specifically reappropriated by the City Council
for expenditure during the new fiscal year. Department Heads are responsible
for not authorizing expenditures above budget appropriations in any given
expenditure classification within their purview, without additional
appropriation or transfer as specified below.
1. New Appropriations. - During the Budget Year, the City Council may
appropriate additional funds for special purposes by a City Council
Budget Amendment. The City Manager has authority to approve requests
for budget increases not to exceed $5,000 in any Budget Activity or Capital
Project. (This must be specifically included in each year's Budget
Resolution to remain valid.)
2. Grants & Donations. The City Manager may accept donations or grants of
up to $5000 on behalf of the City and appropriate the funds for the
purpose intended. The City Council will be formally notified of such
actions on a quarterly basis by way of the City Manager newsletter to the
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F -3
City Council. (This provision must be specifically included in each year's
Budget Resolution to remain valid.)
Additionally, grant appropriations approved by City Council may be
carried forward to the following fiscal year(s) as long as the grant terms
remain valid, the expenditures are consistent with the previous Council
authorization, and the funds would otherwise need to be returned to the
granting or donor agency.
Grant contracts and restricted donations in excess of $5000 must be
specifically approved by the City Council. —Often such a grant is
approved in advance of receipt by the City Council, but the funds are not
appropriated to carry out the grant at that time. In such cases, the City
Manager may appropriate the funds when they are received, provided the
expenditures clearly meet the amount, terms, nature and intent of the
grant or donation previously approved by City Council.
3. Assessment District Appropriation. Assessment district projects are
typically funded by property owner contributions and bond financing
secured by property assessments. City staff will initially seek
appropriation to advance City resources for the assessment engineering
and the design work related to a proposed assessment district. Since the
City's advance is at risk until a district is formed at a public hearing the
appropriation related to advanced resources shall be subject to the normal
budget policies. However, once the district has been formed at a public
hearing, the City Council will adopt a "project- length" budget for the
district and City staff will be allowed to roll the appropriations forward
into future fiscal years without rebudgeting the project through the formal
CIP process.
When assessment bonds are issued to finance the improvements, the bond
issuance costs are estimated at the maximum amount that would be
required to complete the improvements because it is not known how
many property owners will opt to 1aythe assessment in full during the
cash collection period. Finance staff will also have the authority to reduce
Council appropriations (related to bond issuance costs) after bonds are
resized and sold
F -3
34. Transfers. During the fiscal year, actual expenditures may exceed budget
appropriations for specific expenditure line items within departmental
budgets. If a total departmental budget, within a specific Classification, is
not exceeded, the Administrative Services Director has the authority to
transfer funds within that Classification and Department, to make the
most efficient use of funds appropriated by the City Council. (Salaries
and Benefits, Maintenance and Operations, Other Charges, and Capital
Expenditures are the City s four Classifications.)
45. Realignments. Further, funds may be realigned between one Department
Budget Activity and another, within the same Classification, with City
Manager approval. For example, if a Fire Department function and the
employee who accomplishes it are replaced by a slightly different function
assigned to the Police Department, the City Manager may authorize the
transfer of appropriate funds to support this function.
56. Reprogramming. Any reprogramming of funds among the four
Classifications (Salaries and Benefits, Maintenance and Operations, Other
Charges, and Capital Expenditures) within a given fund requires the City
Manager's approval. Any budget revision that changes the total amount
budgeted for any fund (other than the minor provisions contained in
paragraphs B.I. and B.6.b.) must be approved by the City Council.
67. Capital Projects. The Department Head having primary responsibility for
a Capital Project (usually the Public Works Director) is authorized to
encumber and approve subsequent expenditure of City funds for Capital
Projects. However, contracts in excess of $30,000 require specific City
Council authorization at the time of contract award. In addition, any
contracts not of format and wording already approved by the City
Attorney require specific City Attorney review and approval prior to
contract award.
Once a contract has been awarded, change orders may be approved by the
Public Works Director, or other Department Head having responsibility
for the Project, so long as the net total amount committed to the Project
remains below 110 percent of the original contract award amount; and so
long as the original amount appropriated for the Project by City Council is
not exceeded.
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Change orders exceeding the above thresholds may be approved by the
City Manager as follows:
a. Total spending for any single contract may not exceed 125 percent
of the original contract award amount without City Council
approval. -.In certain situations the Public Works Director and the
City Manager may determine that a change order exceeding this
125 percent threshold is needed, and that the timing is such that a
work stoppage or other undesirable consequence will result if
approval of the change is delayed until the next City Council
meeting. In those instances, the City Manager may approve a
change up to 150 percent of the original amount. However, the
Ci Manager will notify all City Council Members individually
this situation develops, and if there are any objections to the
increase, a special meeting of the City Council will be called to
address the issue.
b. The total amount authorized for a capital improvement project may
be increased by transferring funds from one Project to another or
by reprogramming funds from any of the other three classifications
(see B.5), so long as the new total does not exceed 110 percent of the
original amount appropriated by Council.
C. In the event that the transfer or reprogramming action in B.6.a. or
B.6.b. above would result in a material reduction in the scope of the
capital project or other City activity from which funds are to be
withdrawn, City Council authorization is required. For example,
the movement of five percent (5 %) of the funding from one large
project to another large project of the same general category could
be approved by the City Manager, whereas the elimination or
significant reduction of two small, unrelated projects to provide
funds for a five percent (5 %) increase in a much larger project
would require City Council approval.
In all instances, notification of any changes to capital project contract
amount or budget authority must be communicated to the Administrative
Services Director.
All unexpended and unencumbered capital projects will be canceled on
June 30 of each fiscal year. The appropriation balance of these canceled
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projects will be recorded in the Reserve for Capital Improvements or
another appropriate Reserve Account by the Administrative Services
Director at fiscal year end (see also paragraph C.2. below).
78. Reserves. Funds from unappropriated contingency reserves may be
transferred to active Classification accounts only by City Council Budget
Amendment.
C. Additional City Council, City Manager, and Administrative Services Director
Responsibilities. The Administrative Services Director is responsible for
checking purchase requests against availability of funds and authorization as per
the approved Budget. The City Manager is responsible for approving
expenditures which do not conform to the approved Budget, but which fall
within the exceptions noted in this policy statement. It is the responsibility of the
City Manager to administer the City's budget within the framework of policy
and appropriation as approved by the City Council.
1. Special City Council Expenditure Approval. Once the final Budget has
been approved by the City Council, specific City Council approval to
make expenditures consistent with the Budget will not be required, with
two exceptions (see also Purchasing and Accounts Payable Procedures):
a. Capital Projects in excess of $30,000.
b. Consultant Contracts in excess of $30,000.
All other budget administration actions, including the routine filling of
vacancies in staff positions authorized within the Budget, will not require
further City Council approval. However, new positions and other new
expenditures do require City Council approval, and the City Council and
City Manager reserve the right to impose any special fiscal control
measures, including a personnel hiring freeze, and other spending
controls, whenever circumstances warrant. Since the annual Budget is
approved by formal Resolution, a request by a City Council Member for
review of a portion or portions of the Budget, with a view toward
changing amounts appropriated or the purposes for which they were
appropriated, requires a majority vote of the City Council.
2. At fiscal year end, the Administrative Services Director is authorized to
realign, reprogram, and /or transfer money among accounts within each
Fund in order to close the books of accounts of the City of Newport Beach
7
F -3
in accordance with generally accepted governmental accounting
principles as established by the Government Accounting Standards Board,
Government Finance Officers Association, and other appropriate
accounting or auditing pronouncements. Any net shortage within a Fund
will be recorded as a decrease in Fund Balance and reported to the City
Council. Any net excess will be recorded as an increase to one or more
appropriate Reserve Accounts as recommended by the Administrative
Services Director and approved by the City Manager. (Information
regarding appropriation of Funds from the Reserve Accounts is contained
in City Council Policy F -2.)
Adopted - January 24,1994
Amended - February 27,1995
Corrected - February 26, 1996
Amended - May 13,1996
Amended - May 26,1998
Amended - August 8, 2000
Amended - May 8, 2001
Amended - April 23, 2002
Amended - April 8, 2003
Amended - XXXXX, 2004
Formerly F -10, F -11, F -12, and F -21
NEW OR EXPANDED REVENUE MEASURES
PURPOSE
1951
In order that budget preparation may proceed on an orderly basis with adequate time
given to consideration of all matters, and in order to establish a basis for staff
recommendations on revenue matters, the following policies are established.
A. Revenue measure changes may be processed at any time during the entire fiscal
year. However, the normal procedure will be to introduce them at the outset of
the of active budget preparation process. Changes should ordinarily become
effective at the start of the new fiscal year.
B. Special services, which can be identified with the recipients, will be self -
supported from service fees to the maximum extent possible. Service fees shall
be established in the Master Fee Schedule in compliance with applicable State
law, and shall be periodically reviewed for compliance with applicable State law.
C. Every reasonable effort will be made to establish revenue measures which will
cause the transients and recreation visitors to Newport Beach to carry a fair
portion of the expenses incurred by the City as a result of their use of public
facilities.
D. At the outset of the budget cycle, and when requested by the Administrative
Services Director, each department shall provide the Administrative Services
Department a listing of the fees imposed by department. This listing shall
identify the estimated costs to the City in providing the product or service
associated with each fee as well as any recommended revision in the fee.
E. The Administrative Services Department, with the assistance of the initiating
department, shall present for City Council review any new or revised revenue
measures. The Administrative Services Department shall endeavor to consult
with private individuals, business groups and individual business persons on
the economic impact any recommended revenue measure changes may have on
them, including but not limited to the City's Economic Development Committee
and the Newport Harbor Area Chamber of Commerce. Their response, the
estimated costs to the City in providing the product or service and the
recommended revision to the revenue measure shall be included in the
information forwarded to the City Council.
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F-4 •
F. Whenever possible, any revenue measure that requires a public hearing will be
held in conjunction with the public hearing on the proposed budget.
Adopted - August 26,1968
Reaffirmed - November 11, 1974
Reaffirmed - November 12,1968
Amended - January 24,1994
Reaffirmed - March 9,1970
Amended - February 27,1995
Reaffirmed - February 14,1972
Corrected - February 26,1996
Reaffirmed - December 10, 1973
Amended - May 26,1998
Amended - May 8, 2001
Amended - XXXXX, 2004
Formerly F -13
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F -11
ACQUISITION, CUSTODY, AND DISPOSAL OF CONTROLLED PROPERTY
PURPOSE
To set forth the City's policy concerning establishment of procedures and assignment of
responsibilities regarding acquisition, custody, and disposal of controlled property.
The primary focus of this policy, and the procedures to which it refers, is security of the
City's property and equipment.
1000101111.301
Controlled Property is defined as property having an initial value greater than $500,
with two exceptions. At the discretion of the City Manager or a Department Head,
individual items of City property of less than $500 value may be designated as
controlled property. This should be done with items especially subject to theft or
misuse. Conversely, major fixed assets with no potential for theft, such as buildings,
land, water and sewer lines, and other assets affixed to the earth are exempted from
some aspects of this policy, such as custody control. For a discussion of the distinction
between "end items' of equipment, which are subject to property control procedures,
and components of that equipment, which require a different level of control, see the
City's Property Control Procedures.
PROPERTY CONTROL RESPONSIBILITIES
The Administrative Services Director shall establish and maintain citywide property
control and disposal procedures. However, basic accountability for City property,
along with the responsibility for maintaining appropriate day to day measures to keep
it reasonably secure, lies with the Department Head whose budget appropriation was
used for original procurement of the property (unless transferred to another
Department).
Items designated to be included in the property control system will be entered into the
system at the time they are acquired and removed from the system when they are
disposed. Custody of assets will be established to the Department Head level.
Department Heads may establish sub custody to their Divisions, or other subordinate
levels within their Departments, if they desire. Department Heads must advise the
Administrative Services Director of any transfers of property between custodians, or of
any other adjustments or realignments to be effected.
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F -11
An inventory of property control items will be conducted at least annually by the
custodians (Department Heads), at the direction of the Administrative Services
Director. A report of this inventory will be prepared by the Administrative Services
Director and submitted to the City Manager. The Administrative Services Director will
specifically report any material discrepancies (such as missing items) arising from these
inventories, and recommend appropriate action in each case. The City Manager will in
turn advise the City Council on the completion of each inventory and of any specific
items deemed appropriate including the identification of any theft or missing property.
In the event any item of value greater than $5000 is missing as a result of
misappropriation or other illegal activity, or without adequate explanation, the City
Council will be so informed.
DISPOSAL
Property and equipment being removed from City Service by Departments will be
turned over to the Administrative Services Director (Warehouse Manager), who will
arrange for proper disposal and removal from the property control system. City
property shall be disposed of in a manner that results in the greatest financial
advantage to the City. For items of relatively significant value, this usually means a
competitive bid process. For items of no value, this usually means least -cost disposal.
Donations made by the City must be approved by the City Council and whenever
possible, local charities and homeowners associations will be given first choice. The
City Manager has the authority to waive Council approval for surplus property
donation based on recommendation by the Administrative Services Director if the
estimated total value of the surplus property is less than $2500 and if he deems the
donation is in the best interest of the City. Specific procedures for disposal of property
are contained in the City's Property Control Procedures.
Controlled Property procured with City funds and authorized for use off -site by
designated individuals must be returned to the City Manager or Administrative
Services Director in the event of retirement, termination or reassignment, or purchased
from the City at the current value of the equipment.
Adopted - January 24,1994
Corrected - February 26, 1996
Amended - August 12,1996
Amended - April 23, 2002
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F -13
DISTRIBUTION OF PUBLIC INFORMATION IN MUNICIPAL SERVICES
STATEMENTS AND BUSINESS LICENSE RENEWALS
PURPOSE
The purpose of this Policy is to establish guidelines for the distribution of written
materials with the Municipal Services Statement and Business License Tax Renewal
forms.
Periodically, material is distributed to residents through the Municipal Services
Statement and Business License Renewal form. This material shall be approved by the
Administrative Services Director using the guidelines below as criteria for approval.
Material not completely consistent with the guidelines below will not be distributed
with Municipal Services Statements or Business License Tax Renewal forms without
specific Council authorization. All costs associated with the inclusion of such material
must be paid by the department submitting the request for inclusion.
Mailing may include the following:
• A. Notification of schedules or procedures affecting City services.
B. Information on the availability and scope of City services and facilities.
C. Information concerning the functions and responsibilities of City departments
and financial aspects of City operations.
D. Information on municipal projects or future programs where a reaction from the
community, business, or a neighborhood is desired.
E. Information on recommended courses of action to protect the public or property
from fire, theft, damage, and related hazards.
F. Other materials which are designed to keep the public informed on the activities
of its government.
Mailings shall not contain information of a commercial nature, or from commercial
entity.
With the approval of the City Mangier, ilnoormation from community based, non-
commercial organizations may be included in the Municipal Services Statement and
Business License Renewal. The Drimary purpose of any such material should be to
provide information of a public service nature. The material must not contain direct
solicitation for contributions or promotions of events whose primary12urpose is fund
raising (such as $200 per plate dinners). However, announcements of other events are
generally appropriate, even if a nominal fee or "bake sale" tvve activity is an incidental
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F -13
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part of the function. pre4e4-a All costs associated with the inclusion of such material
must be paid by the non - commercial organization.
The Municipal Services Statement subscribers list shall not be made available for any
private or organizational use. The City Manager may authorize exceptions to this
restriction.
Adopted - December 9, 1968
Formerly G -2
Amended - October 25,1977
Amended - May 13,1991
Amended - January 24,1994
Amended - February 27,1995
Corrected - February 26, 1996
Amended - XXXXX, 2004
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AUTHORITY TO CONTRACT FOR SERVICES
PURPOSE
F -14
To set forth the City's policy establishing authority for committing City funds for
Service Contracts.
LIMITATION
Contracts for services are distinct from contracts for procurement of specific material
items. If the only purpose of a contract is for the City to obtain material or equipment
(to include related maintenance contracts), guidelines contained in the City's
Purchasing Procedures will be followed. The policy contained herein refers only to
awarding contracts for services, such as audit services, public works projects, and
custodial services.
AUTHORITY
Department Heads are authorized to award contracts for services of less than $30,000
without further review, as long as the services were approved by the City Council as
part of the annual budget process. This authority may not be delegated below the
Deputy Department Head level. Contracts in excess of $30,000; contracts for services
not specified in the approved budget; and contracts for services which exceed the
amount authorized by the City Council in the Budget must be submitted to the City
Council for specific approval before the contract is awarded. T~ aaa�RUitieF,4The City
l Attorney will review all specific ontract documents prior to contract award.
City Purchase Orders are not required for service contracts. A copy of the Contract
shall be submitted directly to Accounts Payable (^ ee un int Fiscal Services Manager),
where it will be used as an encumbering document. Thereafter, progress payments will
be handled in the same manner as progress payments on a Purchase Order, i.e. invoices
will be approved by the Department Head and submitted to Accounts Payable for
payment. It is recognized that by their nature, service contracts cannot always be
awarded as a result of a competitive bid process. However, competitive bids should be
obtained whenever possible before resorting to negotiated awards. Professional
services shall be obtained by a qualifications based selection process pursuant to State
law.
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ACKERMAN TRUST
PURPOSE
F -16
To establish City policy for the distribution of the proceeds of the income from
the Ackerman Property.
POLICY
Per the terms of the Carl Ackerman Family Trust, the net sales proceeds of 4te
lease revenue for-of certain property in McFadden Square is to bewere,z . divided
between the University of California, Irvine, and the City of Newport Beach. The
proceeds are were to43 -t =distributed as follows:
Sixty (60) percent of the proceeds are to b were distributed to the University of
California, Irvine, to be used for scholarship funding for needy qualified
students.
Forty (40) percent of the proceeds ate weare to be distributed to the City of
Newport Beach to be used in the following manner:
Seventy -five (75) percent of the City's share .1:<, }!..h,.,_;.., , -to create a
permanent endowment to provide a perpetual annuitv that can be
used to acquire high -tech library equipment.
Twenty -five (25) percent of the City's share F =;tefl- >,.,: create a
permanent endowment to provide a perpetual annuit3L f fund
scholarshipssQi -b for needy qualified students. This
scholarship fund shall be open to _r;_„ . ti.? ,.,,iu, <i:..;•::. ;;, - ;r. :. •r:
.... .................. __.......... _._.._..._........_.._.-
5:.tch, 11W to i children of City employees
t =etri ti eti-i n a �- t�4a�s<itt -l�a�� t.
The following procedures are established to meet the terms of the Ackerman
Trust.
The City shall deposit its share of the -all proceeds from the lease sale of
Ackerman property into art- expeftdab - tPermanent Fund. Within that fund,
the Cite shall create separate permanent endowment reserves to account for the
principal share of both the high -tech library equipment (S579,586) reserve and
the scholarship reserve (S193,195). The City shall also create similar reserves to
track the expendable portion of each reset t =cc:ndota>rnent.
• 1 o sustain tht economic vitality of the dc�i�atcd Ackerman annuities, the City
ghall c01ttibute _a__pirtion_of_tltis fund's interest earnilc *.S to the - permanent
cndcmgn ilt resent. Jhe anneal contribtition to the pe.rnllnent endownunts
shall, he an amount equal. to a fire -bear moving averat e of the Los Ange.105, •
Riverside, and Orange County c013samer price index (071) for December
rnulti})lied times the ccn-rent permanent endowmalt balance. L-lotivever, the City
shall not be obligated to make contributions to permanent endowments in excess
Of the atrnnal recorded investtnent earnings of that .fund.
During the budget process each year, the Administrative Services Director will
recotmend to the City Manager the maximum amount that can appropriated for
the coming budget year considering the minimum permanent endowment levels
and future economic vitalijy of the program. In order to reduce the impact that
market fluctuations might have on the available annuity, the maximum amount
for appropriation will be calculated by multiplying the unspent resources
(expendable and nonexpendable) in each category by a the five -year moving
average of IALc previous years' investment returns, less CPL
The City Manager may recommend an expci #iii.u.rr._ a}?]; ?ro,} 1_iaticm above %or
below thy.: max33nuiii annual approprt.ltlon ((..!.. ". Saving %.-y ral vears worth oi:
allocations for a lan,,c capital Lw-chasct) but in ,110 cash shall, the City expc:,nd any
c i�n,poncr }t_ if tl +c_.}'erm ti }crlt_Qndow�nent,
Periodic pa4me -nis - sl'lall ° _ {he;' •
sixty
isrttr iii afarnrTlz =o n{ ia3— I:he— attr<�rra #— r>ErAj } eret= r {af -4ke
�1��E(?(: i;'..T- #'- i?i�iPd?t= -1?a�w iii<:' N-: �-•}# ia�i-#? c'- li3tic�li'-- f+'ri- }:j? -ts }.i 5- C? Y�3�. 'i�xa#31{'.- ti�tSt- i�il�ci. -t4?
4ii ?Ri1 ?J4 t'.� ?{'iu-e3f
It shall be at the City's discretion what high tech library equipment to acquire,
and how to award the scholarship funds to needy qualified students.
Adopted - January 24,1994
Amended - May S, 2001
Amended - XXXX, 2004
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VOICE -MAIL GENERAL POLICY
PURPOSE
F -19
To establish procedures for City departments and individual employees using
electronic voice -mail to answer incoming telephone calls.
BACKGROUND
As a service organization, the City must be responsive to the needs and requests of its
residents and customers. The telephone is often the first, and sometimes the only
contact members of the public have with the City. It is important that telephone
inquiries be handled promptly and courteously by City staff. However, the City of
Newport Beach has :educed the size of toe Nverk force and is striving to increase its
effectiveness to accommodate ever - increasing service demands with fewer City
employees. Voice -mail and automated telephony applications can increase efficiency
and effectiveness by eliminating "telephone tag," busy signals and unanswered lines,
and can provide speedier delivery of routine information.
• Unfortunately, sometimes voice -mail can be impersonal, and at times frustrating for the
caller, especially if the system has long complicated messages and unending loops. This
policy sets forth the procedures and guidelines to avoid these common voice -mail
problems.
DEFINITIONS
A. Voice -Mail. An electronic system to receive, send, transfer or store telephone
calls using individual "mail boxes" for each employee or department.
B. n anee Gall n reeessine. A device F F ca n individual � a� n � � c
speeial r i-Semiatiell-
specified .
DB. Automated Attendant. A deviee Nvhieh answef:s ealls with a gfeeting and ..
of eheic-es.An automated voice mail application that — routes call to personnel
within a department or provides scripted information in the absence of a staffed
receptionist position.
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F -19
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C. Interactive Voice Response (IVR). An integrated computer controlled,
unattended voice application capable of providing valuable information based
on caller input 24 hours per day, seven days per week. Types of information
currently available include checking plan check staus, scheduling permit
inspections, and pang bills and fees using a credit card.
D. Automated Citizens Information Svstem. An unattended IVR based telenhon
application designed to provide primarily static information to callers as well as
to staff members. Pre - recorded information inclu4eincludes answers to most
freauently asked questions (FAO's) and offers FAX back on demand
functionality.
GUIDELINES
Use of the voice -mail system by City employees shall be governed by the following
guidelines: 0
A. A44-Most City_ department and division general information- telephone lines shall
should be answered by a receptionist during City business hours.
All City depar1=m_P_n.tand division general ^Qermation Imes shall always be
answered by a " reeeptionist. Only uUnder unusual circumstancesne
condition shall these lines be routed through the voice -mail auto attendant
applic atienapplicationsystem. If the assigned receptionist is unavailable at any
time during City operating hours, the department shall make an effort to assign a
back -up receptionist to answer incoming calls. In the event that this is not
possible, calls may be routed to the voice -mail auto at#exantattendant
application. The application will route callers to the appropriate person and will
further provide an option for the caller to be directed to a live answering person
by selecting "9".
hlcemingEal!T
All exceptions to this policy shall be approved by the City Manager or
Department hHead prior to implementation. Q&rrent_eExceptions to this policy
are the following:
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F -19
1. _ 1.4or ..atien Line. The i4ermatien Line uses an
deviee whieh previd.s pre FeEeMed .:fermatien on r-:,.,.� event; And
serviees. The ealler also has the eptien to speak with a City ..1,.ye if
desired.
2. Call C,.,,....,,cer System. Some City phone lines, suEh as the Coral
Library, experieREe a high volume of Ealls during Eertain times of the day.
A eall sequen er gaexes ineentin�s until an epefater- isa-, -' �
1. ACIS. -The Automated Citizens Information System provides unattended
pre- recorded information 24x7 and is updated when necessary by the
Telecommunications Division and /or the responsible Department or
Division.
2. IVR. —The Interactive Voice RepenseResponse system — provides
unattended access to applications such as plan check and permits status,
inspection scheduling, account balances, and facilitates credit card
payments for fees and services.
• B. Calls transferred to or made directly to an employee's direct phone line shall be
answered promptly, if at all possible.
Employees shall attempt to answer phone calls as they arrive and shall not use
voice -mail to screen calls. Employees otherwise engaged in meetings or priority
work may use voice -mail to answer calls, with the intent to return the calls as
soon as possible.
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F -19
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C. City ployees shall retrieve voice -mail messages frequently and promptly.
Employees shall listen to their voice -mail messages at regular intervals
throughout the workday. Remote retrieval when an employee is outside City
Hall is also possible and shall be used when out of the office for extended time
periods. If an employee is traveling or on leave, he /she shall record a voice -mail
message informing the caller when the employee will return to work.
D. A caller shall not be transferred to a voice -mail box without his /her specific
consent.
Receptionists answering general City phone lines shall not automatically transfer
callers to an individual's voice -mail box without the caller's consent. No
individual employee telephone extensions shall automatically be forwarded to
an individual's mailbox, except as provided for under Guideline A#3 above.
Callers for an unavailable employee shall be asked if they want to leave a
message with the person answering the call or if they want to be connected to
that employee's voice -mail message box. Callers asking f ...- ee fie information
F__1
LJ
E. All callers transferred to City voice -mail shall have the option of transferring to a
live operator at any time during the voice -mail message.
All voice -mail messages should end with the following option: "If you need to
speak to someone immediately, please press 'QV."
IMPLEMENTATION AND OPERATION
Overall control and administration of the system is the responsibility of the
Telecommunications Division of the Administrative Services Department. The
Telecommunications Division shall assist each department with the design and
installation of their individual programs, consistent with the following:
A. Each department shall develop ap implementation plans including assignment
of mailboxes, call routing and sequencing, message scripting and employee
training for review and approval by the Telecommunications Division. Plans
shall be phased in during a test period of at least one month.
W]
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9 F -19
B. All messages on any voice -mail device shall be scripted consistent with attached
examples. Whenever possible, messages will be recorded by a selected narrator
with special voice skills.
DC. All employees shall receive both initial and on -going training in the use of voice -
mail.
ED. The Telecommunications Division shall produce periodic management and
usage reports on the use of the system, including a summary of any complaints
or problems.
FE. Additions, deletions and changes to the system must be requested by
department directors or their designee and approved by the Telecommunications
Division. However, individual mailbox messages may be altered in accord with
the attached examples.
GF. The voice -mail system is the property of the City and is to be used only for City
business. As such, all voice mail is subject to monitoring and discovery.
[Attachment - Examples of Voice Mailbox Greetings]
Adopted - April 25,1994
Amended - February 26,1996
Amended - June 9,1997
Formerly M -7
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F -19 •
ATTACHMENT
CITY OF NEWPORT BEACH
VOICE PROCESSING POLICIES AND PROCEDURES
ACCEPTABLE EXAMPLES OF VOICE MAILBOX GREETINGS
A. For in -house office personnel to be used as a standard greeting:
"Hello, this is John Doe. Today is Thursday, July 2nd. I'm in the office but away
from my desk right now, and will be in meetings after 2 o'clock. At the tone,
please leave a detailed message and your phone number, and I'll return your call
as soon as possible. if you need to speak to someone immediately, please press
O40 '. Thank you."
A shorter version for the same may be "Hello, this is John Doe. 1 am currently
away from my desk or on the phone. Please leave your name, number and a
detailed message, and 1 will get back to you as quickly as possible. if you need to
speak with someone immediately, please press '8'0'. Thank you." •
B. For field personnel or those frequently out of their office:
"Hello, this is John Doe. I am currently out in the field (or out of my office) right
now. 1 will be checking for messages regularlyg and I would appreciate it if you
would- Please leave your name, number and a detailed message se -and 1 eafi-will
get back to you as quickly as possible. if you need to speak to someone
immediately, please press'9 =0'. Thank you."
C. For personnel on vacation:
"Hello, this is John Doe and 1 will be on vacation from August 1st through
August 15th. 1 will not be checking my messages until 1 return. For immediate
assistance, please press '9=0'. Thank you."
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EMPLOYEE OF THE YEAR
(THE DOROTHY PALEN AWARD)
PURPOSE
F -22
To establish the award criteria and selection process for the Dorothy Palen Avarid-, or
City Employee of the Year award.
BACKGROUND
Dorothy Palen retired from the City of Newport Beach Finance Department in 1993,
after 47 years of dedicated service. Every year since her retirement, a Newport Beach
City employee who best exemplifies the characteristics of Dorothy Palen has been
selected as the Employee of the Year. This City Council policy specifies the award
criteria and selection process to insure a deserving employee is selected as the
Employee of the Year.
PROCEDURE
A Between n,.,„ bee ,s' and November 30 Eeach year, all City employees may
will have an opportunity to- submit a nomination to the Human Resources
Marta rePDirector for Employee of the Year, . All
nominations must include a brief justification describing how the nominee
specifically meets the established award criteria on a form available Frei+ -from
the Human Resources Department.
B. A Committee composed of the Human Resources Manager-Director, two
Department Directors, and two other employees selected by the City Manager,
will review the nominations and narrow the field of candidates to five
employees. The committee shall ideatifyVecify the reasons for the its
recommendations.
C. The names of the finalists with a written justification for selection shall be
presented to the City's senior management staff at- the first - meter's staff
meeting in january for final selection.
D. The selected employee shall be recognized at the annual Employees Awards
Breakfast. Dinner ^ ^a ^- . ^ -a ^a The employee will be presented a plaque
commemorating his /her recognition as Employee of the Year. A press release
shall indieate the award and the reaseft why they were selected for the
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F -22 19
pfestigieus honer will be initiated which describes the award and honors the
selected employee.
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E. To be nominated for the award, the recommended employee should be a role
model for all City employees. The Award Committee's evaluation will be based
upon work performed and /or organizational contributions made during the
current calendar year.
F. Specific emits award criteria which should be considered during the
selection process are:
Initiative - The nominee is a self- starter, willing to originate action without
instruction, and to introduce new ideas and waysmethods to provide public
services.
Integrity - The nominee steadfastly adheres to an ethical code that reflects the
values of the organization.
Dependability - The nominee is reliable and trustworthy; a dependable person
that encourages confidence about his/her support and follow - through.
ud ent - The nominee is able to perceive, distinguish, evaluate, and form
sound opinions after due consideration and deliberation.
Cooperation - The nominee is able to accomplish his /her job tasks while
establishing cooperative working relationships with other City employees and
the public, based on sensitivity to the needs of others and concern for the
common good.
Adopted - January, 21, 1994
Amended - February 27,1995
Amended - February 24,1997
Amended - March 22,1999
Formerly J -4
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F -23
F -23
USE OF CITY TELEPHONES AND CALLING CARDS CELLULAR PHONES
PURPOSE
To establish the policy for the use of City telephones and calling eardscellular phones.
POLICY
City regular and cellular telephones are intended to be used for business only.
However, the Employee Policy Manual establishes provisions for limited personal use
of City telephones as follows:
" Emplovees are permitted to make or accept Dersonal calls on a limited basis durin
their Workday provided the conversations do not prevent the Employee from timely
performing his /her normal duties. Employees shall use their best efforts to keep
personal telephone calls to a minimum during the Workday and to make personal calls
during their meal period(s) or on break(s). Employees shall reimburse the City for the
cost of all long distance personal calls and the cost of personal cellular phone calls."
Some cellular hone calling plans, especially for Employees involved in the EOC, may
provide for no cost for phone use within certain parameters. In this situation, if there is
no charge to the City no reimbursement for personal calls is required. However, the
guidelines concerning limited use as set forth in the paragraph above are still germane.
if telephone crep e the Qte,.—aeil
„War
personal eall are made eit
tions Pivisien to telephene
to their department
fer- the
eharge eff:eialCity
crem then €€iee. Charging
eal?s utility=
shall bed
^.al r:
s4hile assay sueh call
business. The department direeter
-1 -nited to
the t4ese
eu.
may autherize
their department. if
use of ealling
is to the
ear"
it isz'�e
ethers sdithin personal
the department direeter to
eall eftarged ealllngeard,
the City is
ce: al
responsibility e€
mare sure reincibursed
City regular and cellular telephones are intended to be used for business only.
However, the Employee Policy Manual establishes provisions for limited personal use
of City telephones as follows:
" Emplovees are permitted to make or accept Dersonal calls on a limited basis durin
their Workday provided the conversations do not prevent the Employee from timely
performing his /her normal duties. Employees shall use their best efforts to keep
personal telephone calls to a minimum during the Workday and to make personal calls
during their meal period(s) or on break(s). Employees shall reimburse the City for the
cost of all long distance personal calls and the cost of personal cellular phone calls."
Some cellular hone calling plans, especially for Employees involved in the EOC, may
provide for no cost for phone use within certain parameters. In this situation, if there is
no charge to the City no reimbursement for personal calls is required. However, the
guidelines concerning limited use as set forth in the paragraph above are still germane.
if telephone crep e the Qte,.—aeil
„War
personal eall are made eit
telephones, the the Gitv
fer- the
ealler should make arraneement-s te reimburse
eest Off
these all. One this i •c to
if
late hey
`M e*egi3fie 1 e rule migl, ed
fk J Y
h a,...ded 1....,_ 1
telephone a c it . to i fer them
n.+ether
ma, ,lair .a�i,ixo �.= «em- ,,.;�.,...,. wer��::�F :�oa�s.
of their
ouf _ :��
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• F -23
usage is fer
's r-OC
tea-4. Members
e )(eeition on i9ersenal eellular .
are . . -on
to
,— regular ,. ,,1 . , .
the Cky for the
I-.- the railer should
make arrangements rei-nburse
eest of
of the E^C team that are required a carry a Bell �la unit
are allewed
to make Igersenal
calls. exception
telephone their family
Fule an empleyee required
to infef-i them their
werk
heurs.
ealls based on the ell..l. .-.l. issued by the ciWs T-eleeenununiEatieRs
of extended werking
Divisien, 2t by
the n a, ..a....a:. c Department d4
erder of e s et
TL i t
from t he E
ams�
n= personal � epl�realls
henes,
are . . -on
to
,— regular ,. ,,1 . , .
the Cky for the
I-.- the railer should
make arrangements rei-nburse
eest of
these One
to this is, if is
to late,
calls. exception
telephone their family
Fule an empleyee required
to infef-i them their
werk
heurs.
may
of extended werking
if an empleyee 4as to make or aeeept an emergency telephone call from a City
telephone, they sheuld likewise make arrangements to reimb n!se the City for the eost „c
.accc czallrs.
The Telecommunications Division will make available to each department a listing of
the telephone calls charged to each telephone within each department.
Adopted - January 24,1994
Amended - March 22,1999
Amended - XXXXX, 2004
Formerly J -5
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F -24
POLICY FOR COLLECTIONS AND WRITE -OFF OF ACCOUNTS RECEIVABLE
Guided by the policy provided herein, the Administrative Services Director shall
establish specific procedures and dollar thresholds regarding collections and the
write -off of accounts receivable to the City. From an accounting perspective,
aging accounts receivable should generally be written off during the fiscal year
in which the account is no longer expected to be collectable. However, the
decision regarding actual collection efforts is separate. (Subsequent collection of
an account previously written -off is treated as new revenue.)
The Administrative Services Director or his designee shall establish and maintain
consistent working guidelines for the point at which collection efforts will no
longer be feasible or cost effective. Notwithstanding these guidelines, exceptions
will sometimes be appropriate on case -by -case basis. Each type of account and
each account may have specific legal or administrative nuances that may
reasonably impact expectation of collection.
The following guidelines should be applied in regarding aging accounts
receivable:
• Aging accounts receivables should be reviewed monthly to encourage
timely payment. Dunning notices should be mailed and penalties should be
imposed where appropriate.
• The estimated cost of collection should not exceed the value of the
delinquent account. Delinquent accounts over the current deemed
minimum account balance threshold ($25.00 in 2004) and 90 days past due
should be promptly sent for collection. The reasonable cost of any contract
collection efforts should be added to the delinquent balance but the
collection fee should not be recognized as revenue until the amount is
received.
• Sometimes it may not be readily evident and /or practical to determine the
precise time a receivable becomes uncollectible on an individual account
basis. On an interim basis, the Revenue Division may elect to estimate and
maintain an allowance for uncollectible accounts as a contra asset account
as a best estimate of the value of uncollectible accounts that still remain on
the City's balance sheets.
• Receivables in general, should be substantiated by documentation
evidencing the amount and validity of the receivable. However, further
written evidence should be maintained by the Revenue Division to
substantiate the probable collection for any account deemed collectible over
three years old.
To the maximum practical extent, consistent application of policy in this area is
the goal. However, circumstances vary, and prudent judgment by staff is relied
upon in making exceptions.
Adopted - XXXXX, 2004
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G -6
MAINTENANCE AND PLANTING OF PARKWAY TREES
The City Council is vitally interested in beautification of City parkways. Public
cooperation in helping to develop and maintain healthy and attractive trees is
encouraged.
MAINTENANCE OF PARKWAY TREES
The General Services Department will trim the parkway trees on a rotation
schedule. An effort will be made to trim the parkway trees on less than a three -
year cycle. If the rotation trimming is completed in less than three years, more
frequent trimming will be dene performed on certain trees and in view areas.
Public safety issues such as low branches and heavy foliage will be given priority
over view trimming. An effort will be made to trim parkway trees located in
heavy summer traffic areas during the fall and winter months. The trimming
schedule will be altered to avoid trimming streets with flowering street trees
during their blooming time. This will apply to streets having a large number of
flowering trees, not to one or two trees on a street. Annual trimming of certain
species of trees prone to wind dama.>e will be done prior to the v,7inter season.
TREE LIST
The Parks, Beaches and Recreation Commission has adopted an official street
tree list which will be used by the General Services Department to determine
species for planning purposes in all new subdivisions and replacement in
established parkways. The list, which is entitled Street Tree Designation List, will
be reviewed on an annual basis by the General Services Department staff with
any recommendations forwarded to the Parks, Beaches and Recreation
Commission.
STANDARDS AND SPECIFICATIONS FOR PLANTING PARKWAY TREES
A. General Requirements
1. 72 -hour notification shall be given to the General Services Department
staff prior to the initial installation of parkway trees for approval of
species, material quality, and planting supervision. 24 -hour notice shall be
given prior to all subsequent inspections as required.
2. Relative position of parkway trees is subject to approval by the General
Services Department, and any tree not properly placed will be relocated at
no cost to the City. In the interest of public safety, trees shall be
121aiited not less than:
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G -6
a. 25 feet back of beginning of curb returns at intersections.
b. 10 feet from lamp standards.
C. 10 feet from fire hydrants.
d. 10 feet from service walks or driveways.
e. 10 feet from meters and sewers.
f. 25 feet from stop signs.
3. Trees shall be a minimum container size of " 2tbox,, ••f4ess- �
avai,l-wity necessitates the planting of nn boxed specimens.
a. Condition: Plants shall be symmetrical, typical for variety and species,
healthy, vigorous, free from plant disease, insect pests and shall have
healthy, normal root system free from being root bound. Trees shall not be
pruned nor topped prior to delivery.
• b. Inspection: All plant material shall be subject to inspection and approval
by the General Services Department staff prior to planting. The City has
the right to reject any item offered.
4. Soil Analysis Requirement for Land Developers
Developers may be required to submit ha ve a composite soil analysis
ann ?leted made by a bona fide soil testing laboratory of soil to receive
parkway trees at no cost to the City. The location and number of soil
samples shall be determined by the City. Analysis shall include fertility
level and organic content of the samples take. A copy of the test results
shall be forwarded directly to the General Services Department staff a
minimum of 60 days prior to the scheduled planting of parkway trees.
PARKWAY TREE PLANTING
A. All tree lanting pits shall be dug with the bottom level, width equal to
two times the diameter of the ball, and the depth 11/2 times the height of
the container from which the tree is planted.
B. Where land developers are required to provide soil analysis, the prepared
soil backfill shall be based on test results.
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C. When soil analysis is not a requirement, native soil with a commercial •
fertilizer approved by the General Services Department staff shall be used
for backfill.
D. Set plants in center of pit, in vertical position, so that crown of ball will be
level with finish grade after allowing for watering and settling and shall
bear the same relationship to finish grade after allowing for watering and
settling and shall bear the same relationship to finish grade that it did to
soil surface in its container.
E. Prepare a depressed water basin capable of holding 10 gallons of water.
Water shall be applied in that quantity at time of planting in a fashion that
insures wetting the entire root ball and that all air pockets are removed.
F. If houses are not occupied, trees shall be watered one week later.
Thereafter, watering shall be done at week intervals by the developer for a
period of one year or until homes are occupied.
G. Each tree must be properly supported by one Reddy Stake System two
r ..a,.,._ ele pine stakes- or other material approved by the General Services
Department staff. Stakes shall be a minimum of ei& seven feet in length.
Stake all trees at time of planting by placing _A stake in the prepared hole
and 4rglacin�� stake as prescribed by the manufacturer.minimum
of 30 inehe =:ati ,2 to soil.
H. All trees shall be secured to stakes with a eieek-tie UV- resistant vinvl
tubing.
A root barrier approved by the General Services Department staff shall be
installed.
GUARANTEES
A. 36" (or alter-native 2 24" boxed trees shall be guaranteed as to growth
and health for a period of ninety (90) days after final acceptance by the
General Services Department staff.
B. Trees that fail to grow or are injured or damaged during planting
operations shall be replaced within 15 days after notification. Replacement
material shall be guaranteed as specified as original guaranteed material.
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0 ESTABLISHED PARKWAYS
Applicant must:
A. Applicant must accept responsibility for watering and fertilizing new
trees.
B. If an applicant has questions regarding the street tree program they
should contact the Urban Forester at (949) 644 -3083 or send a written
request for one or more parkway trees to: Attn: Urban Forester, P. O. Box
1768, Newport Beach, California 92659 -1768.
City of Newport Beach will:
A. Approve species, location, and spacing of tree planting.
B. Furnish, install, stake, and initially fertilize new trees (exception would be
trees planted in accordance with City Code 13.09.010).
C. Prune and spray tree as required.
• D. Approve type of root barriers for installation.
E. Assume trimming responsibilities.
Adopted - November 22,1982
Amended - November 14,1983
Amended - October 22,1992
Amended -January 24,1994
Amended - July 23, 2002
Formerly I -19
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HARBOR PERMIT POLICY
HARBOR INSTALLATIONS GENERALLY
A. Shore connected piers and floats bayward of residential zoned areas shall be
controlled by the Harbor Permittee. Vessels moored at residential piers shall not
create a nuisance with regard to vehicle parking, vessel waste, liveaboards, or
noise disturbances to adjoining residents.
B. Shore connected piers and floats bayward of commercial -zoned areas may be
rented.
C. Only piers, floats, certain patio decks and their appurtenances shall be permitted
bayward of the bulkhead.
D. No private piers shall be permitted at street ends.
E. In R -1 zones, only a single pier and float or slip shall be permitted bayward of
each parcel or lot.
DEFINITIONS
A. The term "Pier" shall mean any fixed or floating structure for securing vessels,
loading or unloading persons or property, or providing access to the water, and
includes wharf, dock, float, or other landing facility, and dry dock.
B. The "Harbor Lines" are established Bulkhead, Pierhead, and Project Lines.
C. The "Bulkhead Lines," as established, shall define the limit of solid filling or solid
structures.
D. The " Pierhead Lines," as established, typically shall define the limit for pier and
float -type structures.
E. The "Project Lines' shall define the channel lines of the improvements and by the
Federal Government in 1935 -36.
F. The term "Liveaboard" shall mean the use or occupancy of a vessel for living
quarters either permanently or on a temporary basis for a period exceeding 72
hours.
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G. The term "Standard Drawings" refers to Standard Drawings adopted by the City
of Newport Beach as minimum standards of construction whenever harbor
permits are required.
H. The term "Design Criteria" refers to Design Criteria adopted by the City of
Newport Beach as minimum standards for design whenever harbor permits are
required.
I. The term "Mean Low Low Water" is abbreviated, M.L.L.W., and refers to the
lowest tide of the daily two -tide cycle.
J. The term "Harbor Structures' refers to any pier float, piling, bulkhead, sea wall,
reef, breakwater or other structure in, upon or over the waters of Newport
Harbor or the Pacific Ocean or any other water where the tide ebbs and flows
within the City of Newport Beach.
K. The term "Harbor Permittee" refers to upland property owner or long. term
• lessee immediately adjacent to water in whose name the Harbor Permit is issued.
PERMITS REQUIRED FOR HARBOR STRUCTURES
A. No person or agency shall build, maintain, extend or make structural alterations
on any building, pier, piling, bulkhead, sea wall, reef, breakwater, or other
structure in, upon or over the waters of Newport Harbor or the Pacific Ocean or
any other water where the tide ebbs and flows within the City, or do any filling,
excavating in said waters or ocean, without first obtaining a written "Building
Permit" to do so from the City's Building Department.
B. The Orange County District may do construction work or fill or dredge within
Newport Harbor, or cause the same to be done, without such a permit so long as
such work is done pursuant to a harbor development plan on lands not owned
by the City or pursuant to a request therefore by the City Council.
C. A separate permit will be required by the Harbor Resources Division for
dredging.
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GENERAL PROVISIONS FOR PERMITS FOR HARBOR STRUCTURES
A. Acceptance of Provisions. It is understood and agreed by the Permittee that the
doing of any work under the permit shall constitute an acceptance of all the
applicable provisions of Municipal Code and City Council Harbor Permit
Policies.
B. Permit from Other Agencies. The party or parties to whom the permit is issued
shall, whenever the same is required by law, secure the written order or consent
to any work hereunder from the U.S. Corps of Engineers, California Coastal
Zone Commission, or any other public body having jurisdiction, and the permit
shall be suspended in operation unless and until such order or consent is
obtained.
C. Transferring Permit. The permit is not transferable without the written consent
of the City of Newport Beach.
D. Inspection. Inspection shall be done by the Building Department for conformity
with the Uniform Building Code, design criteria and standard drawings for
Harbor construction. 0
E. Protection of Traffic. Adequate provisions shall be made for the protection of the
traveling public. Barricades shall be placed on streets with lights at night, also
flagmen employed, all as may be required by the particular work in progress.
The Permittee shall not attempt to forbid the full and free use by the public of all
navigable waters at or adjacent to the work or structure. If the display of lights
and signals on any work hereby authorized is not otherwise provided by law,
such as lights and signals, as may be prescribed by Bureau of Light Houses,
Department of Commerce, shall be installed and maintained at the expense of the
Permittee.
Structures shall be so constructed as not to obstruct, interfere with or prevent the
free use of adjacent harbor structures or passage of any sidewalks, street, alley,
public way or navigable channel.
F. Liability for Damages. The Permittee is responsible for all liability for personal
injury or property damage which may arise out of work herein permitted, or
which may arise out of the use or possession of said works, and in the event any
claim is made against the City of Newport Beach or any department, officer, or
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employee thereof, though, by reasons of, or in connection with such work,
permittee shall defend, indemnify and hold them and each of them, harmless
from such claim.
G. Revocation of Permit. The rights given under this permit are permissive only
and the City of Newport Beach reserves full right, power and authority to revoke
this permit at any time. In the event the Permittee fails to remove said works
within the time specified, then the Harbor Resources Division shall have the
right to immediately remove same at the cost and expense of the Permittee.
H. Re airs. The Permittee shall keep the structures in good repair at all times.
Failure to repair, when written notice has been given by the Harbor Resources
Division, shall be cause for the revocation of the permit.
I. Pollution Control. The Permittee shall maintain the area delineated on the
harbor permit free and clear from beached or floating rubbish, debris or litter at
all times. Adequate safeguards shall be maintained by the Permittee to avert any
other type of pollution of Newport Harbor from recreational and /or commercial
. use of the tidelands. Failure to comply with the provisions of this section shall be
cause, after written notice has been given to the Permittee by the City, for the
revocation of the permit. When unusual circumstances arise with respect to the
collection of debris or litter, the City Manager may authorize by the use of City
forces or by contract the removal of said debris.
J. Rights to hnpose Rental or Other Charges. The approval of the foregoing permit
by the City of Newport Beach shall not constitute a waiver of any rights which it
may now have or hereafter have to impose rental or other charges in conjunction
with the maintenance of the proposed facility and user of the same. The
imposing of tidelands rental, or use, fees shall not be extended to include private
residential piers and slips, constructed and used solely by the abutting uplands
owner for recreational purposes, unless otherwise directed by State mandate.
K. In those areas of the harbor where the piers and floats are bayward of residential
zoned areas, liveaboards shall not be permitted.
L. Special Event Permits. If a Harbor Permittee proposes a use of the harbor
installation, other than that allowed by the Newport Beach Municipal Code or
the Council Harbor Permit Policy, he /she must first obtain a "Special Event
Permit" as provided by Section 510 of the Newport Beach Municipal Code. Upon
issuance of the Special Event Permit, the City of Newport Beach may impose
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conditions on the permit to assure that the proposed use does not affect the
health, safety or welfare of the residents of Newport Beach.
ISSUING OF PERMITS FOR HARBOR STRUCTURES
A. The Building Department is authorized to approve and issue new permits and
revisions to existing permits that conform to the standard harbor drawings and
the adopted Harbor Permit Policy in conjunction with plan reviews by the
Harbor Resources Division.
B. Prior approval, when applicable, from the California Coastal Commission
and /or the U.S. Corps of Engineers will be required before issuing any permit.
Application to the California Coastal Commission and /or the U.S. Corps of
Engineers may be made on forms provided by those agencies.
C. Prior approval of Orange County will be required when work extends over
tidelands claimed by the County.
D. Before issuing a Permit for any work on oceanfront beaches or for any unusual •
type of harbor structure, or for a structure on which the applicant proposes a use
that is not in keeping with the surrounding area, all property owners or long
term lessees within 300' of the proposed work shall be notified in writing by the
Harbor Resources Division of the pending application. Notice will be sent ten
(10) days prior to a decision by the Harbor Resources Division, and after the
Department has rendered a decision. The permit shall not be issued until the
appeal period provided in Newport Beach Municipal Code
Chapter 17.24 has run.
E. Painting, replacement of rub -rails and work considered cosmetic in nature does
not require a permit.
F. Prior to the issuance of a permit, the applicant will show proof of insurance
coverage as required by the Longshoremen's and Harbor Worker's
Compensation Act.
APPLICATION FOR HARBOR PERMITS FOR HARBOR STRUCTURES
A. Applications for authority to erect, revise and do maintenance work on
structures shall be submitted to the Building Department upon forms provided
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therefore. Plans showing the location, extent and character of the proposed work
and required fees shall accompany the application.
B. The application must be signed by the Harbor Permittee or his authorized agent.
PLANS TO ACCOMPANY PERMIT APPLICATIONS
A. Plans accompanying the application will form a part of the permit and must be
carefully prepared in the form prescribed in the Building Department.
B. Number of plans submitted shall be determined by the Building Department,
depending on the nature of the work.
EXPIRATION OF PERMIT
A. The time limit for the completion of all work authorized by a permit shall be 180
days from date of approval.
B. All permits shall expire unless the work contemplated shall have been completed
within the time limit specified.
C. If the work contemplated has been started and diligently prosecuted but not
completed in the time limit specified, a time extension may be granted by the
Building Department upon receipt of a written request from the Permittee.
BOND REQUIREMENTS
If the nature of the proposed work is such that if left incomplete it will create a hazard
to human life or endanger adjoining property, a cash bond or surety bond satisfactory
to the City Attorney in the sum of 100 percent of the estimated cost of the work will be
required to guarantee the faithful performance of the proposed work.
TRANSFER OF ANNUAL HARBOR PERMITS
A. Permits for harbor structures are issued subject to the condition that any
improvements constructed shall not be sold in whole or part, leased, or
transferred, without the written consent of the City.
B. Whenever a permittee sells the abutting upland property, a request shall be
made to the City to transfer the permit. Forms for this purpose may be obtained
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from the Harbor Resources Division. Failure to apply for a transfer within 30
days from the date that the abutting upland property changed ownership will
result in an additional fee by the City.
C. The Harbor Resources Division is authorized to approve transfers to the new
owners or long -term lessee of the abutting upland property.
D. Prior to the transfer of a Harbor Permit, all harbor structures shall be inspected
for compliance with the City's minimum plumbing, electrical and structural
requirements, and the conditions of the existing permit. All structural
deficiencies must be corrected prior to the transfer of the permit. A fee will be
charged for this inspection, established by Resolution of the City Council.
DREDGING
A. All dredging will require a permit from the Harbor Resources Division and may
be subject to engineering approval by the Public Works Department.
B. Major dredging outside the established harbor lines will require prior approval
by the Harbor Resources Division and the U.S. Corps of Engineers. to
C. Maintenance dredging bayward of residential and commercial property shall be
the responsibility of the Harbor Permittee for the zone delineated by the
bayward prolongations of upland side property lines and the U.S. Project line.
FEES
A. INITIAL PERMIT FEES
The Harbor Resources Division may charge the fees identified in the Master Fee
Schedule for initial permits and for pier fees. Initial permit fees do not include
Building Department fees, but they do include Public Works Department fees.
B. PIER FEES
Annxal Non - commercial pier permit fees are due and payable on 1 Mare the
schedule established by the Administrative Services Director in accordance with
the amount stew identified in the Master Fee Schedule.
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All commercial piers over City Tide and Submerged Lands will be billed
annually as follows:
1. Permittees having commercial piers over City Tide and Submerged Lands
shall pay an annual rent identified in the Master Fee Schedule for each
square foot on permit area (base rental).
2. Annual rent shall be paid on or before March 1.
3. The Base Rental shall be adjusted annually to reflect the increase or
decrease in Consumer Price Index (CPI) for each twelve month period.
The CPI (all urban consumers, all items) for the Los Angeles -Long
Beach - Anaheim, California area as published and released by the Bureau
of Statistics for the U.S. Department of Labor shall be the index utilized for
calculating the rental adjustment.
4. The base rental shall be recalculated every ten years pursuant to an
appraisal commissioned by the City of Newport Beach. In determining
• the value of tide and submerged lands, the appraiser shall consider the
fact that commercial use of publicly owned tidelands is economically
feasible only in conjunction with privately owned uplands.
•
5. All appraisals shall be conducted by an MAI appraiser(s) with
membership in the American Institute of Real Estate Appraisers and
experienced in assessing the value of tidelands.
6. The provision of this subsection shall not apply to tidelands subject to a
written lease requiring the payment of rent based on gross receipts.
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STANDARD DRAWINGS
The following Standard Drawings have been approved and are on file in the Public
Works Department:
Precast Reinforced Concrete Groin Panel
Detail For Raising Bulkheads
Grand Canal - Platform and Steps Type I
Grand Canal - Platform and Steps Type II
Single or Joint Residential Use Gangway
Single Residential Use Float Without Pier
Single Residential Use Float West Newport
Channels
Commercial Pier and Float Installation
Single Residential Use Float With Pier
Single or Joint Residential Use Pier Sections
Pile Details
Eye Bolt For Boat Anchorage
Gangway Hanger Bracket
Datum Planes
Natural Sand Profiles in Newport Harbor
DESIGN OF STRUCTURES
Dwg.
No.
STD -600 -L
Dwg.
No.
STD -601 -L
Dwg.
No.
STD -602 -L
Dwg.
No.
STD -603 -L
Dwg.
No.
STD -604 -L
Dwg.
No.
STD -605 -L
Dwg. No. STD -606 -L
Dwg. No. STD -607 -L
Dwg. No. STD -608 -L
Dwg. No. STD -609 -L
Dwg. No. STD -610 -L
Dwg. No. STD -611 -L
Dwg. No. STD -612 -L
Dwg. No. STD -613 -L
Dwg. No. STD -614 -L
A. Design of harbor structures that do not conform to the Standard Drawings
contained within "Design Criteria and Standard Drawings for Harbor
Construction," needs the approval of the Building Department prior to the
issuance of a harbor permit.
B. Harbor structures shall be designed in accordance with design criteria adopted
by the City of Newport Beach and contained within "Design Criteria and
Standard Drawings for Harbor Construction."
C. The decking of all piers and pier platforms shall not exceed an elevation of 9.0
M.L.L.W. nor be less than an elevation of 8.0 M.L.L.W.
JOINT OWNERSHIP PIERS
A. Permits may be granted for joint ownership piers at the prolongation of common
lot lines subject to the following conditions:
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1. No permits will be granted to persons other than the owners or long -term
lessee of the abutting upland properties.
2. The permit application must be signed by the fee owners or long -term
lessee of all abutting upland property having access to the facility.
3. The permit shall provide that all parties shall have equal rights under the
permit and shall be held jointly responsible for compliance with all rules,
regulations, and conditions set forth in the permit.
B. The policy for setbacks applies to joint ownership piers with the exception that
the slips, floats and piers may extend over the common property line.
BULKHEADS
A. All bulkheads in residential districts shall be installed on the established
bulkhead line or at a location behind the bulkhead line that would preserve the
design profile of the harbor. Any retaining or ornamental wall installed
landward of the bulkhead line shall be considered a bulkhead if it also serves to
contain the waters of the harbor and shall be processed in the same manner as if
it were on the bulkhead line.
The Harbor Resources Division may issue permits for bulkheads, between U.S.
Bulkhead Station Numbers 112 -109 not to exceed the bayward side of the
"Vacated East Bay Avenue." U.S. Bulkhead Station 104 for the addresses at 2209,
2223, 2227, 2231 and 2233 Bayside Drive: Staff recommendation for a bulkhead at
these properties shall not exceed a point bayward of the average high tide line
established at a point 40 feet landward of the face of the bulkhead at the property
at 2137 Bayside Drive, and then on a straight line from that point to the bayward
most point of the bulkhead at the property at 2301 Bayside Drive.
B. Bulkheads shall be at the existing height established for the area and shall be
connected to adjacent bulkheads. In cases where no adjacent bulkhead or
bulkheads exist, a wing wall or wing walls shall be constructed from the
bulkhead landward adequate to contain the fill behind the bulkhead constructed
from the bulkhead landward adequate to contain the fill behind the bulkhead.
No solid or masonry structure shall be constructed on a bulkhead.
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C. The height and design of all bulkheads and wing walls shall be subject to the
design and construction standards of the Building Department.
D. All bulkhead permits may be subject to a detailed construction drawing being
approved by the Building Department. Drawings signed by a Civil or Structural
Engineer may be required.
E. The bulkhead shall not be used to support any structure on the abutting upland
property unless the bulkhead has been properly designed to carry the additional
loads.
F. In areas where there is existing development and it is of direct benefit to the City
to have a bulkhead constructed, the City may contribute 1/3 of the cost of
constructing a bulkhead across street ends.
PARKING REQUIREMENTS
A. All commercially operated boat docking facilities shall provide 0.75 parking
stalls for each single boat slip and 0.75 parking stalls for each 25 feet of available
mooring space not classified as a slip. •
B. For dry boat storage areas, 0.33 parking stalls shall be provided for each storage
space available.
C. For floating dry docks, at least two (2) off - street parking stalls shall be provided
exclusively for each dry dock.
D. All parking shall conform to the City of Newport Beach off - street parking
standards.
E. Commercial Activities Permits
1. On -site Parking
a. On -site parking shall be provided as follows:
i. Charter vessels: one parking space for each three occupants,
including crewmembers;
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ii. Sport fishing vessels: one parking space for each two
occupants, including crewmembers.
b. Said on -site parking shall be provided on the adjoining upland
property. If adequate parking is not available on -site, all or a
portion of the required parking spaces may be provided at an off -
site location, subject to the approval of the Assistant City Manager
and the Planning Director. The use of an off -site lot shall not be
approved unless:
i. Such is so located as to be useful in connection with the use
of the vessel.
ii. Parking on such lot will not create undue traffic hazards in
the surrounding area.
iii. Such lot and the adjoining upland property are in the same
ownership and the owner is entitled to the immediate
• possession and use thereof. Ownership of the off -site lot is
defined as ownership in fee or a leasehold interest of a
duration adequate to serve the proposed commercial
activity.
0
C. When a vessel will not offer services to the general public, all or a
portion of the required parking may be provided at a remote off -
site location, if transportation is provided from the off -site parking
location to the site where the vessel is moored. Parking for the
shuttle vehicles must be provided near the site where the vessel is
moored unless said vehicles will be stored at the remote off -site
location at all times when not in use.
d. If the use of the off -site parking location is approved, the owner(s)
and the City shall execute a written instrument (the form and
content of which is acceptable to the City Attorney) providing for
the maintenance of the required parking spaces on such lot for the
duration of the commercial activity. Said instrument shall be
recorded in the office of the County Recorder prior to issuance of a
Commercial Harbor Activities Permit, and copies thereof shall be
filed with the Harbor Resources Division.
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SAFETY REQUIREMENTS
A. All commercially operated boat docking facilities shall be equipped with fire
fighting facilities as specified by the Fire Chief of the City of Newport Beach.
B. Any electrical service upon any pier, dock or float shall be installed under a
permit obtained from the City of Newport Beach Building Department.
C. Any domestic water service upon any pier, dock, or float shall be installed under
a permit obtained from the City of Newport Beach Building Department.
D. All commercial piers, floats or docks used for the loading of passengers, shall be
lighted in such a manner as to provide an illumination level of 0.5 -foot candles
for all areas used for the loading of such passengers.
SANITARY REQUIREMENTS
A. A permit for a pier, dock or float shall not be issued until the rough plumbing for
the dwelling unit or the required restrooms serving such pier, dock or float, has
been installed and approved by the City Building Inspector. The use of a pier, is
dock or float will not be allowed until restroom facilities are completed and in
operation.
B. All public or private commercially operated shore - connected boat anchorages
shall have a minimum of two restroom facilities, one for women and one for
men, for each 20 boat slips or boat berths available in the anchorage area. The
minimum walking distance from the farthest boat berth to the restroom facility
shall not exceed 400 feet.
C. Sewage Pumping Facilities.
Permission may be granted to install and operate sewage pumping facilities for
boats moored to shore - connected structures providing such installations are first
approved by the Harbor Resources Division.
In requesting approval, the following information must be submitted in
letterform to the Harbor Resources Division:
1. The name and address of the person responsible for the installation;
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2. The name and address of the manufacturer of all pumping equipment;
3. A complete description of the materials and the pumping equipment to be
used;
4. An 8" x 11 ", or larger, sketch clearly showing the location of the sewage
discharge lines, the connection to the sewer system, and the area to be
served.
SETBACKS
A. All piers and floats for residential properties shall be set back a minimum of five
feet from the projection of the property line.
B. All piers and floats for commercial properties may extend to the projection of the
property line.
C. The projection of the property line bayward of the same bearing from the
• bulkhead shall generally be used in determining the allowable setbacks for piers
and floats. Because there are certain physical conditions which preclude the
strict application of this policy without prejudice to adjoining properties, special
consideration will be given to areas where precise projections of the property line
have not been determined and the following conditions exist:
1. Where property lines are not approximately perpendicular to the
bulkhead line.
2. Where curves or angles exist in the bulkhead line.
3. Where bridges, topography, street ends or publicly owned facilities adjoin
the property.
MOORINGS
A. Boats moored at private or public docks shall not extend beyond the projection
of the property lines of the property to which the dock facility is connected in
accordance with Section 20 -C.
B. Any boat moored at a pier, dock, or float shall not extend bayward a distance of
• more than the width of its beam beyond the pier, dock or float. Between
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bulkhead station 256, beginning at Collins Avenue to bulkhead station 255, boats
moored at a pier dock or float shall not extend more than 15' bayward from the
end of the pier dock or float or more than the width of the beam of the boat,
whichever is less.
C. Mooring Fees for both onshore and offshore moorings shall be set annually by
Resolution of the City Council.
BALBOA ISLAND
A. No new, non - commercial piers on Balboa Island shall be approved unless in the
public interest. New non - commercial piers, if approved, shall be constructed in
strict conformance with this Policy and standard drawings. Piers presently
permitted may be maintained and repaired upon securing a maintenance permit.
Any revision of an existing pier or float shall be in strict conformance with this
Policy and shall not be approved if the addition or revision would, in
comparison to the existing structure, further restrict or impair the public' s use of
the bay or beach in the vicinity of the pier or floats.
B. Revision to existing structures shall be limited to the following: •
1. The overall square footage of the revised structure shall be equal to or less
than the square footage of the permitted structure;
2. The revised structure does not extend landward more than the permitted
structure;
3. The revised structure does not extend beyond the City permit line (the
U.S. Pierhead line or such other bayward extension of the permit area that
is permitted by this Policy; and
4. The revised structure is wholly within the original permitted area as
specified in the existing permit on file with the City.
C. Whenever any application to install a new, non - commercial pier or revise an
existing pier is submitted to the Harbor Commission all property owners
(according to the latest equalized assessment roll prepared by the County of
Orange and available to the City) within 300 feet of the exterior boundaries of the
parcel for which the application is submitted shall be notified in writing by the
Harbor Resources Division of the pending application. The applicant shall
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provide the Harbor Commission with a list of property owners and envelopes
addressed with postage prepaid.
*BAYWARD LOCATION OF PIERS AND FLOATS
A. U.S. Bulkhead Sta. No. 107 to No. 109. Piers will be permitted to extend out to
the U.S. Pierhead Line.
B. U.S. Bulkhead Sta. No. 109 to No. 110. Piers may be permitted to extend 16 feet
channelward of the U.S. Pierhead Line.
C. U.S. Bulkhead Sta. No. 110 to 112. Piers will be permitted to extend out to the
U.S. Pierhead Line.
D. U.S. Bulkhead Sta. No. 112 to No. 113. Piers will be permitted to extend out to
the U.S. Pierhead Line. Commercial piers between "A" Street and Adams Street
will be subject to special permits approved by Harbor Commission.
is E. U.S. Bulkhead Sta. No. 113 to 114. Piers shall be subject to a special permit
approved by the Harbor Resources Division.
F. U.S. Bulkhead Sta. No. 114 to No. 119. Piers will be permitted to extend to the
U.S. Pierhead Line.
G. U.S. Bulkhead Sta. No. 119 to No. 120. Piers may be permitted to extend 20 feet
beyond the U.S. Pierhead Line.
H. U.S. Bulkhead Sta. No. 120 to No. 221. Piers may be permitted to extend 20 feet
beyond the U.S. Pierhead Line.
I. The Rhine. Special permits approved by the Harbor Resources Division shall be
required for construction of piers in the Rhine, extending northerly from U.S.
Bulkhead Sta. No. 120.
J. U.S. Bulkhead Sta. No. 122 to No. 125. Piers or boat slips may be permitted to
extend 20 feet channelward of the U.S. Pierhead Line.
*Based on Harbor Regulations adopted by the City Council on December 15,1941.
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K. West Newport Channels. Piers may be permitted in the Rivo Alto, the Rialto,
and the channel lying westerly of Newport Boulevard. Piers, slips, and floats
will be permitted to extend channelward a distance of 30 feet maximum from the
channel lines in the Rivo Alto, the Rialto, and the channel lying westerly of
Newport Boulevard. Property extending to the ordinary high tide line, with a
frontage exceeding thirty (30) feet will be allowed 1 -foot increase in float width
parallel to the Pierhead Line, for each additional 2 feet frontage.
The piers, slips and floats in Balboa Coves shall not extend into the channel a
distance greater than 30 feet from north line of channel shown on Tract 1011.
Floats. Up to 20 feet in length may extend into the bay the 30 feet from the said
line of waterway, however, for floats over 20 feet in length, the 30 feet distance
shall be reduced 1 -foot for each 2 feet added to the length of the float. The
maximum permissible length of float shall be 30 feet. (Second paragraph of
Sec. 23 (k) added by Resolution No. 6139.)
L. U.S. Bulkhead Sta. No. 226 to No. 227. Piers or boat slips will be permitted to
extend to the U.S. Pierhead line.
M. U.S. Bulkhead Sta. No. 227 to 128. Piers or boat slips will be permitted to extend
to the bulkhead line. ID
N. U.S. Bulkhead Sta. No. 128 to No. 130. Piers or boat slips will be permitted to
extend to the U.S. Pierhead line.
O. U.S. Bulkhead Sta. No. 130 to No. 131. Piers or boat slips may be permitted to
extend 20 feet channelward of the U.S. Pierhead Line.
P. Upper Bay. Piers or boat slips may be permitted to extend to the pierhead lines
as shown on Harbor Lines Map approved by City Council and on file in the
Public Works Department.
Q. U.S. Bulkhead Sta. No. 132 to No. 137. Pier or boat slips will be permitted to
extend to the U.S. Pierhead Line.
R. U.S. Bulkhead Sta. No. 137 to east property line of Beacon Bay Subdivision. Piers
shall be granted under special permits approved by the Harbor Resources
Division to extend 16 feet beyond the U.S. Pierhead Line.
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S. East Property Line of Beacon Bay Subdivision to U.S. Bulkhead Sta. No. 104.
Piers may be permitted to extend 20 feet channelward of the U.S. Pierhead Line.
T. U.S. Bulkhead Sta. No. 104 to No. 106. Piers shall be subject to special permits
approved by the Harbor Commission.
U. Bay Island. Piers will be permitted to extend to the U.S. Pierhead Line on the
west, northerly and easterly sides of the Island. Piers will not be permitted on
the north side of the channel south of Bay Island.
V. Balboa Island. All new piers and revision to existing permits shall be subject to
special permits approved by the Harbor Commission. Revisions to existing piers
will be permitted providing they do not lessen the use of either the immediate
water or land areas.
1. South Bay Front East of U.S. Bulkhead Sta. No. 256. Piers may be
permitted to extend 16 feet channelward of the U.S. Pierhead Line.
Dredging around floats shall not exceed a depth of minus 4 feet at mean
lower low water along a line 85 feet channelward of and parallel to the
bulkhead line.
2. South Bav Front between U.S. Bulkhead Sta. No. 256 and No. 259. Piers
may be permitted to extend 10 feet channelward of the U.S. Pierhead Line.
Dredging around floats shall not exceed a depth of minus 2 feet at mean
lower low water along a line 60 feet channelward of and parallel to the
bulkhead line.
3. South Bay Front from Emerald Avenue Northwesterly to the Westerly
Prolongation of the Northerly Line of Lot 5, Block 1, Resubdivision of
Section 1, and Balboa Island. Piers will be permitted to extend to City
pierhead line. Dredging around floats shall not exceed a depth of 2 feet at
mean lower low water along a line 45 feet channelward of and parallel to
the existing concrete bulkhead.
4. North Bay Front. Piers may be permitted to extend 10 feet channelward
of the U.S. Pierhead Line, except where a pier line has been established by
the City. Dredging around floats shall not exceed a depth of minus 2 feet
at mean lower low water along a line 60 feet channelward of the parallel
to the U.S. Bulkhead Line or the existing concrete bulkhead.
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5. East Bay Front. Piers may be permitted to extend 10 feet channelward of
the U.S. Pierhead Line northerly of the northerly line of Park Avenue and
16 feet channelward of the U.S. Pierhead Line southerly of the northerly
line of Park Avenue. Dredging around floats shall not exceed a depth of
minus 2 feet at mean lower low water along a line 60 feet channelward of
and parallel to the bulkhead line.
W. Collins Isle. Piers will be permitted to extend to the U.S. Pierhead Line on the
southwest and west side of Collins Isle. No piers will be permitted on the north
or east side of Collins Isle.
X. Harbor Island. Piers will be permitted to extend to the U.S. Pierhead Line.
Special permits approved by the Harbor Commission will be required for piers
northeasterly of Lots 14,15,16 and 36.
Y. Lido Isle. Piers may be permitted to extend out to the U.S. Pierhead Line, except
on the westerly side between U.S. Bulkhead Sta. No. 172 and No. 174. Piers may
be permitted to extend 20 feet beyond the U.S. Pierhead Line between U.S.
Bulkhead Sta. No. 172 and 174.
1. Piers and floats will not be permitted in the beach area along the northerly
side of Lido Isle between the easterly line of Lot 849 and the westerly line
of Lot 493.
2. Piers and floats will not be permitted in the beach area along the southerly
side of Lido Isle between the easterly line of Lot 919 and the westerly line
of Lot 457.
Z. Linda Isle. Piers or boat slips will be permitted to extend to the pierhead lines as
shown on Harbor Lines Map approved by City Council and on file in the Public
Works Department.
EXCEPTIONS
Exceptions may be approved by the Harbor Commission to any of the requirements
and regulations set forth if there are special circumstances or conditions affecting the
harbor installations that would impose undue hardship on the applicant, or a
waterfront property owner' s access to the water is impacted by a public works project,
or if it would be detrimental to the best interest of the City.
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1061
SIGNS
A. No signs shall be permitted beyond the bulkhead lines with the exception of the
following:
1. Informational and directional signs of service to the public such as fuel,
gasoline, live bait, ice, beer and similar signs which in general list services
and commodities but do not advertise a specific brand.
2. Brand name signs which are customarily a part of a fuel pump or a
vending machine installation.
B. No sign permitted beyond the bulkhead lines shall exceed 4 square feet in total
area.
STORAGE LOCKERS
Storage lockers and boat boxes may be installed on shore - connected piers and floats
• subject to the following limitations:
A. The overall height shall not exceed 30 inches when located bayward of
residential property zones.
B. The overall height shall not exceed 30 inches when located bayward of
commercial and industrial property zones where the piers and floats are used
primarily for the mooring of pleasure boats.
C. The overall height shall not exceed 60 inches when located on facilities bayward
of commercial and industrial zoned property where the use is not primarily for
the mooring of pleasure boats.
The overall height shall be measured from the deck of the pier or float to the top
of the storage locker.
(Sec. 26 adopted as Sec. 2 of Addendum No.1 by Resolution No. 6041.)
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RACE COMMITTEE PLATFORM
Race committee platforms and instruction platforms may be constructed bayward of the
bulkhead lines at recognized yacht clubs and recognized sailing schools. All work shall
require issuance of a Harbor Permit.
ENCROACHING PIERS AND FLOATS
In areas where existing piers and floats encroach in front of abutting upland property
owned by others, a new permit approved by the Harbor Commission, shall be required
upon:
A. Any change in type of existing use of the piers and floats.
B. Any change in type of existing use of the abutting upland property owned by the
permittee.
C. Any change of existing ownership of the abutting upland property owned by the
permittee or upon the death of the permittee.
D. Any destruction of the pier and float in which over 60% of the replacement value •
of the pier and float has been destroyed.
Before the Harbor Commission acts on the new permit, the owner of the abutting
upland property, in front of which the harbor facility encroaches, shall be
notified in writing of the meeting in which the new permit will be considered.
PATIO DECKS
In areas where the waterways are privately owned, and within Promontory Bay, patio
type decks may be cantilevered beyond the established bulkhead lines subject to the
following conditions:
A. The maximum projection of patio decks encroachments beyond the bulkhead
line shall be limited to 5 feet.
B. The minimum setbacks from the prolongations of the side property lines shall be
5 feet.
C. No float shall be permitted within 2 feet of the decks.
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D. No permanent structure shall be permitted on the projecting portion of the patios
except:
1. Planters and benches not over 16 inches in height.
2. Railings not over 42 inches in height with approximately 95% open area.
FLOATING DRY DOCKS
A. Permits for floating dry docks may be considered by the Harbor Resources
Division, subject to the following conditions:
1. The location is in waters bayward of commercial, manufacturing or
unclassified zones.
2. The prior approval of a Use Permit by the Planning Commission.
B. Permits for floating dry docks are issued for one location only. A new permit
must be obtained to move a floating dry dock from one location to another
location within the harbor.
PROMONTORY BAY
The following conditions are to be placed on each harbor permit when approved:
A. That the permittee shall be responsible and maintain the area delineated on the
harbor permit free and clear from floating rubbish, debris or litter at all times.
B. That the permittee shall be responsible for all maintenance dredging, in
accordance with the design profile for Promontory Bay, for the area between the
bulkhead line and pierhead line as delineated by the harbor permit.
GRAND CANAL
A. The following conditions are to be in effect and placed on each harbor permit for
the Grand Canal:
1. That the permittee shall be allowed either one pier platform, or in lieu
thereof, two shore mooring type appurtenances per lot. Pier platforms
22
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and shore moorings shall be constructed according to "Design Criteria and
Standard Drawings for Harbor Construction" adopted by the City of
Newport Beach.
2. That all vessels (maximum length 18 feet) moored in the Grand Canal
shall be tied off to pier platform structures or shore moorings. Floating
platforms or slips will not be allowed. Vessels tied to the bulkhead or by
alternate methods not approved by the Harbor Resources Division shall
be prohibited.
3. That the permittee shall be allowed no more than one vessel per shore
mooring.
4. That any shore mooring approved for the Grand Canal shall display a
permit number issued by the Harbor Resources Division.
5. That each vessel tied to any pier platforms in the Grand Canal be
anchored from the stern in such a method as to prevent the vessel from
swinging into adjoining vessels or across bayward prolongations of
private property lines.
B. There shall be no permits issued for shore moorings or pier platforms fronting on
alleys, avenues or other public easements terminating on the Canal.
C. There shall be no new permits issued for shore moorings or pier platforms
bayward of those lots at the extreme south end and north end of Grand Canal.
OCEAN FRONT SAND DUNES
As a result of wind, storm and tidal conditions, sand has built up in specific locations
forming sand dunes. These range from a height of a few inches to as much as five feet.
This build up can present problems for adjacent property owners in the form of
increased pressure on ornamental and retaining walls and interfering with views of the
ocean. To resolve these problems, property owners may apply for a Harbor Permit to
do excavation of beach sand directly oceanward of their property in the area bounded
by the prolongation of their side property lines.
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Reaffirmed - January 24,1994
Amended - June 27,1994
Amended - June 26,1995
Amended - March 25,1996
Amended - June 8,1998 (effective July 22,1998)
Amended - December 14,1998
Amended - May 8, 2001
Amended - September 10, 2002
Amended - October 28, 2003
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GENERALPLAN
MANNER OF ADOPTION AND AMENDMENT
The General Plan or any part or element thereof, and any amendment to such plan or
any part or element thereof, shall be adopted in the following manner:
A. Public Hearing - Planning Commission.
The Planning Commission shall hold at least one public hearing before
approving a General Plan or any part or element thereof, or any amendment to
such plan or any part or element thereof, and shall give notice of hearing by at
least one publication in a newspaper of general circulation within the City, and
mailed notice to any community association which may be impacted by a
proposed amendment, as determined by the Planning Director, or to any
individual or community association which has expressed an interest in a
proposed amendment and requested mailed notice, at least ten days prior to the
first of such hearings. If the proposed General Plan Amendment would affect
the permitted uses or intensity of uses of real property, notice of the hearing shall
be mailed or delivered at least 10 days prior to the hearing to the property owner
or his duly authorized agent, to all owners of property and occupants within 300
feet of the boundaries of the property; and to the project applicant. However, if
the number of persons to whom notice would be mailed or delivered is greater
than 1,000, the requirement for individual mailed or delivered notice may be
waived by the Planning Director.
B. Approval by Planning Commission - Resolution. The approval by the Planning
Commission of the General Plan or any part or element thereof, or any
amendment to such plan or any part or element thereof, shall be by the adoption
of a resolution, endorsed by the chairman and Secretary of the Commission and
transmitted to the City Council.
C. Public Hearing - City Council. Before adopting the General Plan or any part or
element thereof, or any amendment to such plan or any part or element thereof,
the City Council shall hold at least one public hearing. Notice of the time and
place of the hearing shall be given at the time and in the manner provided for the
giving of notice of the hearing by the Planning Commission.
D. Referral of Proposed Changes Back to Planning Commission. In adopting a
General Plan or any part or element thereof, or any amendment to such plan or
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any part or element thereof, which has been approved by the Planning
Commission, the City Council shall consider the recommendation of the
Planning Commission. If the City Council intends to make major changes and
take an action not considered by the Planning Commission, the changes shall be
referred back to the Planning Commission for its recommendation. Planning
Commission consideration of an alternative shall be construed liberally so as to
allow the City Council to act on any one of a range of alternatives generally
considered by the Planning Commission. The Planning Commission shall report
back to the City Council with their recommendation on the proposed changes
within 45 days.
E. Adoption by City Council - Resolution. The adoption of the General Plan or any
part or element thereof, or any amendment to such plan or any part or element
thereof, shall be by resolution.
AMENDMENT PROCEDURES (GENERAL PLAN)
City Amendments:
A. City-sponsored -Aamendments to the General Plan shall be initiated by the City
Council aft^ ..A ti frem the Planning , ion
C " .,...,....,
B. ht initiating action to amend the General Plan, the City Council shall direct the
Planning Commission to set public hearings for such amendments, as it deems
appropriate.
C. Prior to making its recommendation on the initiatien of proposed General Plan
amendments, the Planning Commission may do such research, as it deems
necessary to establish whether the proposed amendment warrants
ce;s'ratienapproval.
Property Owner Amendments:
DA. Aeit? —;end fsr- pEroperty owners may regtiestapply for an amendment to the
General Plan limited to changes to the land use designation and /or
development limit for their property. Such request shall be made by the filing of
an application on a form prescribed by the Planning Director along with the fee
established by the City Councilsubmitted in writing to the T'— lane ng
Cemanissio . If property that is the subiect of an aoolication is in more than one
ownership, all the owners shall join in filing the application The request should
2
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clearly set forth the reason for which the request is made,-and should contain
information substantiating the need. jNh an a
r .., r......., r —.7, ........i....,,...'.
eivner or Ns R-- her -aufhori-ved representative or by the Planf�.-g Ge.—a-assion or
shall include a
quantifieat-en e€ the requested density and/or inte- isity, land use, and
conceptual site plan.
if the ...i need that the
change is Baer y of initiation, it may reeenunend ini4 e-famendmients as set
forth above. if not the Commission shall fersoard the request to she City se
with its re snanendatien that initiation of themes uni arraRted. The
City ceuncil, after eensideratien of toe request and of the report he
Planning Co.. -. iss:e �, }na�eith,.. initiate she prepesed amendment and Elire t
eriginater without €urtheraetion, or defef adien en the p p sea a ..a n —n:nent to
F. if ei:izen
is initiated,
a and,ler prep°fky es aner amendment request
appheations related to the request must be filed within
if applications are not filed within this time fraine� the ipdtiatian
shall e)Epire.
Adopted - April 22,1974
Amended - June 23,1980
Amended - November 23,1981
Amended - November 22,1982
Amended - November 27,1989
Amended - January 24,1994
Amended - February 26,1996
Amended - May 8, 2001
11
IMPLEMENTATION PROCEDURES FOR THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
A. Intent.
K -3
The intent of this policy statement is to protect the environment of the City of
Newport Beach, to comply with the California Environmental Quality Act
(CEQA), and to implement the basic principles, objectives, and criteria contained
in the Guidelines adopted by the Secretary for Resources pursuant to the
provisions of California Environmental Quality Act, as amended.
These implementation procedures are intended to satisfy the requirements of
Sec. 15022 of the CEQA Guidelines, and are designed to be used in conjunction
with the CEQA statutes and Guidelines. In the event that any provision of this
policy is found to be inconsistent with CEQA, the Guidelines or case law, this
policy shall be revised to comply with applicable law.
B. Definitions.
As used in this policy statement, the following definitions shall apply:
1. California Environmental Quality Act (CEQA) means Public Resources Code,
Sections 21000 et seq., as amended.
2. CEQA Guidelines means the "Guidelines for Implementation of the
California Enviroiunental Quality Act ", prepared by the Secretary for
Resources.
3. All definitions contained in CEQA and the Guidelines shall also apply to
this policy statement.
C. General Policies.
The following general policies shall apply:
1. The City, in implementing the requirements of CEQA, shall, wherever
possible, integrate these procedures into the existing planning and review
procedures of the City.
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2. In reviewing and assessing the significance of environmental impacts, the
City shall be guided by the adopted General Plan policies and standards.
D. Environmental Determinations.
1. Activities Not Subject to CEQA.
This policy statement shall apply only to activities that are subject to
CEQA. Activities that are not "Projects" as defined in Guidelines Sec.
15378, and activities that are "Ministerial" as defined in Guidelines Sec.
15369 are not subject to CEQA or this policy statement.
Examples of City activities that are not normally subject to CEQA include
but are not limited to, the following:
Business licenses
Parking permits
Sign permits
• Demolition permits
Grading permits
Building permits
Final subdivision maps
Certificates of use and occupancy
Coastal Commission Approvals in Concept
Exceptions. There may be instances where unusual circumstances cause
one of these activities to be considered a discretionary action subject to
CEQA. Examples include, but are not limited to, the following:
a. Any building permit or grading permit application or other action
which is normally considered ministerial but due to special
circumstances is determined to have the potential to cause a
significant effect on the environment. Examples may include the
following:
Work in an area of unusual erosion potential or ground
instability
Work affecting scenic or sensitive biological resources
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An activity that may generate substantial public health
impacts, such as noise, odors, or toxic materials
b. Any building or grading permit in a sensitive area for which no
prior CEQA review has occurred and no discretionary permit (e.g.,
use permit, site plan review) is required.
Determination. The Planning Director shall have the authority to
determine whether an activity is subject to CEQA.
Action by the Decision - Making Body. No findings or discussion of CEQA
compliance shall be required for activities that the Planning Director has
determined not to be subject to CEQA.
2. Projects that are Exempt from CEQA.
CEQA and the Guidelines provide that the following types of projects are
exempt from the requirement to prepare an Initial Study unless there are
special circumstances that could result in significant environmental
effects. 0
a. Statutory Exemptions. Activities that qualify for a statutory
exemption as provided under Sec. 15260 et seq. of the Guidelines
do not require further environmental review.
b. Categorical Exemptions. The various classes of categorical
exemptions are contained in Section 15300 et seq. of the Guidelines.
The discussion of exceptions contained in Section 15300.2 shall
apply particularly to projects and activities that would affect the
shoreline, bluffs, wetlands, public views and other sensitive
environmental resources. The Planning Director shall have the
authority to interpret the applicability of Categorical Exemptions to
particular projects, including City- sponsored activities (e.g., Zoning
Code amendments, assessment districts, construction and
maintenance of utilities) and privately- initiated applications.
C. "General Rule" Exemptions. During the preliminary review of an
application, each discretionary project that is not covered under a
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statutory or categorical exemption shall be evaluated to determine
whether it qualifies for an exemption under the general rule
contained in Sec. 15061(b)(3) of the Guidelines, which states,
"Where it can be seen with certainty that there is no possibility that
the activity in question may have a significant effect on the
environment, the activity is not subject to CEQA." The Guidelines
further encourage agencies to adopt a list of project types that
would qualify for the general rule exemption. Project types which
qualify for this exemption include, but are not limited to:
1. Minor changes to the Municipal Code which do not authorize
physical development.
2. Minor changes to public infrastructure such as installing trees;
replacing or upgrading streetlights, traffic signals, etc; and other
public improvements of a minor nature.
3. Administrative City actions such as budget amendments,
professional services agreements, etc. which do not involve
projects which affect the physical environment
• Determination. The Planning Director shall have the authority to
determine the applicability of exemptions for all public and privately
initiated projects.
Action by the Decision - Making Body. Prior to approval of any project
that is exempt from CEQA, such a finding shall be affirmed by the
decision - making body.
Notice of Exemption. After approval of a project that was found to be
exempt, the Planning Director may prepare and file a Notice of Exemption
as provided under Section 15062 of the Guidelines.
3. Initial Studies.
If a project is subject to CEQA and is not exempt under one of the
provisions listed under Section D.2, the Planning Director shall conduct an
Initial Study according to the requirements contained in Section 15063 of
the Guidelines. Where it is determined that consultant assistance is
required to complete the Initial Study, the procedural requirements
contained in Section E shall apply.
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Applicant's Responsibilities. The applicant shall submit all information
determined by the Planning Director to be necessary for the preparation of
the Initial Study. In addition, when consultant assistance is required the
applicant shall be responsible for all costs as provided under Sections E
and F.
Determining Significant Effects. In determining whether or not a project
may have a significant effect the City will generally follow the guidance
contained in Section 15064 and Appendix G of the Guidelines. In
addition, the following shall be considered in determining whether or not
a project may have a significant impact, in view of the particular character
and beauty of Newport Beach:
a. A substantial change in the character of an area by a difference in
use, size or configuration is created.
b. Substantial grading, excavating or other alteration to the natural
topography.
C. Substantial alteration of the shoreline or waters of the bay or ocean
either directly or indirectly. 0
Determination. On the basis of the information and analysis contained in
the Initial Study, the Planning Director shall determine whether a
Negative Declaration or EIR should be prepared, as provided by Sec.
15063(b) of the Guidelines.
4. Negative Declarations.
As provided in Section 15070 of the Guidelines, the Planning Director
shall prepare a proposed Negative Declaration for a project subject to
CEQA when either:
a. The Initial Study shows that there is no substantial evidence that
the project may have a significant effect on the environment; or
b. The Initial Study identifies potentially significant effects, but:
i. Revisions in the project made by or agreed to by the
applicant before the proposed Negative Declaration is
released for public review would avoid the effects or
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mitigate the effects to a point where clearly no significant
effects would occur, and
ii. There is no substantial evidence before the agency that the
project as revised may have a significant effect on the
environment.
Notice and Posting of a Proposed Negative Declaration. The Planning
Director shall provide notice of a Negative Declaration as required by Sec.
15072 of the Guidelines.
Action by the Decision - Making Body. Prior to approval of any project for
which a Negative Declaration was prepared, appropriate findings shall be
prepared by the Planning Director for consideration by the decision -
making body.
Notice of Determination. Within 5 working days following approval of a
project for which a Negative Declaration was prepared, the Planning
• Director shall prepare and file a Notice of Determination as provided
under Section 15075 of the Guidelines.
5. Environmental Impact Reports.
•
If the Initial Study shows that there is substantial evidence that any aspect
of the project, either individually or cumulatively, may cause a significant
effect on the environment, regardless of whether the overall effect of the
project is adverse or beneficial, the Planning Director shall either prepare
a Draft EIR or use a previously certified EIR which the Planning Director
determines would adequately analyze the project.
Applicant's Responsibilities. The applicant shall submit all information
determined by the Planning Director to be necessary for the preparation of
the EIR. In addition, when consultant assistance is required the applicant
shall be responsible for all costs as provided under Sections E and F,
below.
Consultant Assistance. If consultant assistance is required in the
preparation of a Draft EIR, the procedures contained in Section E, below,
shall be followed.
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Notice of Preparation. The Planning Director shall prepare and distribute
a Notice of Preparation as provided by Sec. 15082 of the Guidelines. The
NOP shall be reviewed by the Environmental Quality Affairs Committee
pursuant to City Council Resolution No. 98 -17.
Screencheck Draft EIR. If a consultant is retained to assist the City in
preparing a Draft EIR, the Planning Director may require the consultant to
submit one or more screencheck drafts for review prior to finalizing the
Draft EIR for publication.
Notice of Completion of a Draft EIR. The Planning Director shall prepare
and distribute a Notice of Completion as provided by Sec. 15085 of the
Guidelines. Copies of the NOC and Draft EIR shall also be provided to
the Environmental Quality Affairs Committee for their review pursuant to
City Council Resolution No. 98 -17.
Final EIR. After completion of the Draft EIR public review period the
Planning Director shall prepare a Final EIR as provided by Sec. 15089 of
the Guidelines. 0
Action by the Decision - Making Body. Prior to approval of any project for
which an EIR was prepared, the Final EIR shall be certified as provided by
Guidelines Sec. 15090 and appropriate findings as required by Sec. 15091,
15092 and 15093 shall be prepared by the Planning Director for
consideration by the decision - making body.
Notice of Determination. Within 5 working days following approval of a
project for which an EIR was prepared, the Planning Director shall
prepare and file a Notice of Determination as provided under Section
15075 of the Guidelines.
E. Consultant Assistance.
When the Planning Director determines that consultant assistance is required for
the preparation of an Initial Study, Negative Declaration or EIR, the following
procedures shall be followed:
1. Consultant List. The Planning Director shall maintain a list of consultants
having a sufficient variety of expertise to assist the Planning Director in
the preparation of Initial Studies or EIRs when required. •
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2. Consultant Selection. When outside assistance is required, a consultant
shall be selected by the Planning Director from the City's consultant list
based on the nature of the project and the expertise of the consultant. If it
is determined by the Planning Director or requested by the applicant that
proposals should be solicited from more than one consultant, the Planning
Director shall prepare and distribute a Request for Qualifications (RFQ) or
Request for Proposals (RFP). Following receipt of proposals or statements
of qualifications, the Planning Director shall evaluate the submittals and
select the best - qualified consultant to assist in the preparation of the EIR.
The applicant may submit recommendations regarding the selection of a
consultant, but the final decision regarding consultant selection shall be
made by the Planning Director.
3. Scope of Work and Budget. After a consultant has been selected a
detailed scope of work and budget shall be prepared by the consultant
and the Planning Director.
4. Contract Approval and Administration. The proposed scope of work and
budget shall be submitted to the applicant for approval. If the proposal is
acceptable, the applicant shall submit a deposit to cover the consultant
costs plus reasonable City administrative expenses. The consultant shall
not be authorized to commence work until such deposit is received from
the applicant. The amount of the deposit will normally be the total project
budget; however, for large projects the deposit may be made in two or
more payments subject to approval by the Planning Director. After
receipt of the applicant's deposit the Planning Director shall prepare and
execute a contract for consultant services in a form meeting the approval
of the City Attorney, and shall administer the contract through project
completion. At the conclusion of the project any unused deposit shall be
returned to the applicant.
F. Fees.
The preparation of an Initial Study, Negative Declaration or EIR shall be subject
to the following fees:
1. For Initial Studies and Negative Declarations prepared by the Planning
Director without consultant assistance, a reasonable fee shall be collected
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as established by resolution of the City Council as part of the Planning
Department Fee Schedule.
2. For Initial Studies and EIRs prepared with consultant assistance, there will
be a City fee as required by the municipal code.
3. No future applications shall be accepted from any applicant, and no
permits or entitlements shall be approved or issued until all prior
indebtedness to the City incurred under this section by such applicants
has been paid in full.
4. The amount of the fee shall become an obligation of the applicant to the
City whether or not the permit or entitlement is issued, or whether or not
the applicant exercises the right to obtain the permit or entitlement. Such
fees accrue and become payable when the City gives notice to the
applicant of the amount of such fees. This liability shall be enforceable in
any court of competent jurisdiction. In the event suit is filed by the City,
in addition to the amount of the fee, applicant shall pay reasonable
attorney's fees.
G. Authority of the Planning Director.
The Planning Director shall have authority for the interpretation of CEQA, the
Guidelines, and this policy statement as they may affect any particular activity or
project, including private development projects and City public works projects.
In addition, the Planning Director shall have authority for the following actions:
1. Determining whether activities are subject to CEQA.
2. Making recommendations regarding the applicability of Categorical,
Statutory and "General Rule" Exemptions for consideration by the
decision - making body.
3. Preparing Initial Studies for projects that are not exempt from CEQA.
4. Preparing and posting proposed Negative Declarations.
5. Preparing and distributing Notices of Preparation and Environmental
Impact Reports for City- sponsored projects and projects for which the
City has approval authority as Lead Agency. 0
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6. Preparing responses to comments on Negative Declarations and EIRs.
Preparing draft findings, resolutions and mitigation monitoring programs
for consideration by decision - making bodies.
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8. Making recommendations to the Environmental Quality Affairs
Committee, the Planning Commission, the City Council, or other City
officials regarding the requirements of CEQA or the adequacy of
environmental documents.
9. Reviewing and commenting on Negative Declarations, Notices of
Preparation, Draft EIRs, or other environmental documents prepared by
other agencies.
10. Developing administrative procedures for implementation of CEQA and
these policies.
11. Providing NOPs, NOCs and staff assistance as needed to the
Environmental Quality Affairs Committee.
Adopted - March 26,1973
Amended - August 8,1977
Amended - July 23,1973
Amended - May 22,1978
Amended - September 10, 1973
Amended - May 13,1974
Amended - June 25,1979
Amended -June 9, 1980
Amended - June 10, 1974
Amended - January 26,1987
Amended - May 27,1975
Amended - October 26,1987
Amended - May 10, 1976
Amended - January 24,1994
Amended - May 23,1977
Amended - March 22,1999
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