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HomeMy WebLinkAbout01 - Minutes - 05-10-2005May 24, 2005 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session May 10, 2005 - 4:00 p.m. ROLL CALL Present: Heffernan, Rosansky (arrived at 4:09 p.m.), Webb, Ridgeway, Daigle, Nichols (arrived at 4:35 p.m.), Mayor Bromberg Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Item 8 (Special Trees), Mayor Pro Tem WelbV stated that he spoke with the Chair of the Parks, Beaches and Recreation Commission, the Acting General Services Director, and the City Manager and believed that the coral tree at Mariner's Library should be a landmark tree. .City Attorney Clauson indicated that Mayor Pro Tem Webb could ask that this be added to the list during the Consent Calendar without pulling the item. She stated that Council would still need to provide an opportunity for comments. Regarding Item 4 (PERS Contract), Council Member Heffernan requested and received clarification from City Manager Bludau that the cost is 516,000 a year. r Regarding Item 8 (Special Trees), Council Member Heffernan asked why the ficus tree is on the list if they caused the City to pay the large claim on Clay Street. City Manager Bludau stated that the tree is a neighborhood significant tree and the row of trees adds to the ambiance of the neighborhood. He indicated that the definitions have not changed and explained that those trees are viewed as protected because Council has taken extra precautions to make sure the roots and trees are trimmed on a regular basis. He confirmed that the City endorses making the tree a protected tree in spite of the liability risk. City Attorney Clauson added that the PB &R Commission decided to add the tree to the list but clarified that special trees can be removed under more restrictive circumstances. She 'stated that the City is going to need to watch those trees more carefully to protect them and to reduce the liability to the City. In responee to Council Member Heffernan's question regarding Item 9 (Cooperative Agreement with the Friends of OASIS), City Manager Bludau reported that there is no definition for "senior" since there is no established age limit. 2. BUDGET SUMMARY AND INTRODUCTION OF DEPARTMENT REVIEWS [ORAL REPORTS). City Manager Bludau reported that, since there are budget issues regarding the Centennial, a presentation will be conducted to discuss activities and funding. Mayor Bromberg stated that he is a part of the Marketing and Fundraising Committee that will be approaching individuals and businesses to raise funds for the Centennial. He announced that today they received their first money Volume 57 - Page 201 INDEX (100 -2005) City of Newport Beach Study Session Minutes May 10, 2005 INDEX contribution of $10,000 from the Daily tWot. He noted that the committee will also be receiving in -kind donations and emphasized that, without in -kind donations, they'd have to pay for the service. Recreation and Senior Services Director Knight utilized a PowerPoint presentation to highlight the mission statement and goals for the Centennial Celebration. She reported that Council appointed a 13- member Steering Committee last year who meet at 3:30 p.m. the first Thursday of every month at the Nautical Museum. She added that subcommittees meet about twice a month. She stated that over 160 volunteers have signed up so far and.they receive community interest daily. She indicated that the Steering Committee is planning four main Centennial events and activities, and proceeded to describe each of them. She reported that the opening event, "Let's Do Launch!" will be held on October 2, 2005, at the Newport Dunes; the City has been accepted as an entry in the 2006 Tournament of Roses Parade; the Spring Festival will be held on May 20, 2006; and the Grand Finale Beach Party will be October 8. 2006 Recreation and Senior Services Director Knight stated that the Community Alliance Committee is trying to incorporate carious organizations to gather volunteers, Further, they are looking at special events and activities that they want to do in addition to what is being planned, participating in the events, working with the annual community events to have them adopt the Centennial as their theme for the year, and creating opportunities.for the business community to become involved and benefit from the Centennial: Celebrations. She reported that the Heritage Committee is in charge of overseeing the production of the commemorative book,, collecting historical information and photos, working on photo restorations;. placing historical markers and /or flagpoles in each of the Villages to commemorate the Centennial, creating historical displays, and gathering and producing oral histories. She indicated that the Marketing and PR Committee is overseeing and looking at everything that is needed for all the events. She explained what the Sponsorship Development Committee does and noted that Council received a draft of the sponsorship package that will he sent to potential sponsors. Regarding the Rose Parade Float, he stated that there are sponsorship opportunities that include riding on the float, receiving tickets to the National Championship Game, and accessing pre - parade .VIP functions. She added that the committee is also planning an underwriters party for early June so that about 100 to 150 potential sponsors could receive a presentation about the Centennial and the different sponsorship opportunities. Recreation and Senior Services Director Knight emphasized that there are many opportunities for in -kind sponsorship and many of the volunteers are providing their expertise in -kind. She reported that the larger in -kind sponsors to date include the Newport Dunes ($30,000+ to help host the Let's Do Launch! party), the Daily Pilot ($65,000 media package), and the Orange Coast Magazine ($65,000 media package). She stated that, in addition to sponsorships, they will be looking at fundraising activities, like the sale of the commemorative book, pins, t- shirts, hats, a Reyn Spooner Centennial shirt, Rose Parade memorabilia; raffle prizes and drawings at the different events; and having a "Sale of the Century" in which people can sponsor their favorite year. Recreation and Senior Services Director Knight reported that the estimated budget for the Centennial is a little over $1.2 million and displayed a slide with the breakdown. She indicated that they are working with the City Arts Volume 56 - Page 202 City of Newport Beach Study Session Minutes May 10, 2005 INDEX Commission on a permanent donor recognition feature for McFadden Square that would recognize the donors and contain a timeline of important dates. She added that they might have an open -call for Newport Beach artists to design the piece and work with the Commission on the funding. She reported that Council allocated $10,000 for start -up costs, provided $114,000 as seed money for the commemorative book, and $175,000 for administration and event/activity deposits. She reported that the Steering Committee hopes to raise $640,000 to $800,000 through sponsorships from corporations and individuals, and $190,000 from fundraising activities. She reported that the Committee is asking Council to consider allocating $350,000 in the 2005 -2006 budget and indicated that they will provide Council a sponsorship update report prior to June 21. Spe`at scared Council that, if they don't raise all the funds, they will adjust. cut back, scale back, and do things differently. X Gay Wassell-Kelly, Heritage Committee Chair, reported that they have', 32 members from throughout the City and Costa Mesa, and >they have met every., other week since January. She stated that they help with the -Centennial book; pass on the collection of the City's history to the Steering Committee for their review, work on photo restorations, assist with fundraising, market the book and supply photos from each decade for the Centennii: website` She indicated that they also have an in -kind camera crew with connections to MSNBC who will be helping them film their oral histories. She no�ied: that she has been hosting "Pages from the Past" that discusses the history of Newport Beach. She reported that there is no flagpole or marker at McFadden Square`' here the first trains and trolleys stopped. She stated that the .Current is running a weekly story about the history of Newport Beach which inrludcs,th`e Centennial logo and website, and the Doily Pilot runs a "Good Old Days" story every other week with the Centennial phone number. Ms.'M'aesell-Kelly announced that there are 50 red cars at the Orange Empire Railway Museum in Perris and they are trying to procure one for a historical museum Mayor Pro Tem Webb thanked Ms:.Wassell- Kell.. particularly for the work she's done with "Pages from the Past" Nancy Jones. Heritage Committee Member, believed that the City should have a great Centennial. She noted that,her grandfather wrote the °50 Golden Years ". She stated that she lives in Newport Coast and many of them are excited about the events, and expressed hope that the City will remember to include them. Sharon Esterley, Let's Do Launch! Event Chair, stated that her committee currently has 70 members and she plans to limit it to 100 members. She reviewed her background in the City. She distributed comments from the committee members explaining why they think Newport Beach is important, why they're volunteering for the committee, and why they're involved. She reported that Let's Do Launch! is basically a big beach party with entertainment on a floating stage. She stated that the October 2 event is from 11:00 a.m. to 5:00 p.m. She noted that there will also be a smaller children's stage. She indicated that community groups can also sponsor a food booth, put on games, or have a puppet show, and noted that the Newport Dunes will prepare food for purchase. She indicated that admission will cost under $10 per person. She reported that they will have the Wells Fargo stage and possibly the horses if they can find a good place for them to give rides around the venue. She stated that they will also have safety vehicles there so children can see them and climb into them. Ms. Esterley reported that the Boy Scout Sea Base has asked them to Volume 56 - Page 203 City of Newport Beach Study Session Minutes May 10, 2005 INDEX include the Argus ship in this event since it is also having its 100th birthday. She stated that they are trying to set up exhibits at the Nautical Museum, provide a boat shuttle back and forth to the museum, and give a history of the Back Bay and an educational tour while shuttling people. She indicated that they will also be having a raffle and would like to rent out exhibit space in the Dunes tent to businesses that would like to display or promote products. She indicated that the raffle and rent proceeds will help underwrite the expense of the event. She pointed out that they are also looking for underwriters to pay for various components of the events. Ms. Esterley reported that they are planning a reception the evening before Let's Do Launch! in order to thank spiinsors, underwriters, and VIPs. She added that each sponsor will have theirrown private area and receive complimentary food. She acknowledged her committee members in the audience. Ms. Esterley reviewed her experience in planning these types of events. Recreation and Senior Services Director Knight stated - .that. they feel they are ready with the necessary information and materials, and Noted that the sponsorship development process is beginning this week. In response to Council Member Daigle's questions, Recreation and Senior Services Director Knight reported that the City hired a project manager, not an event planner. She indicated that the project manager. Janice Dinwiddie, has been moving into the role she has been doing, working on making sure marketing materials are in production, and is also working with the Volunteer Committee. She indicated that the Centennial Committee originally wanted to hire someone who was in charge of were marketing, and sponsorship development; however, those proposals were tooexpensive so it was scaled back to a project manager position. Council Member Daigle indicated that the Corona del May Centennial Committee paid their event planner a monthly fee and a percentage of the sponsorship funding to create an incentive to raise money. Council Member Ridgeway asked if it is too late to bring in a professional if the Committee has not had significant fundraising by June. Recreation and Senior Services Director Knight stated that it is never too late to bring in a professional, but noted that the .Committee is co- chaired by residents who have fundraising experience CouncR:.Member Ridgeway stated that he is very pleased to see all the volunteers; but expressed concern that the volunteers will rely on the City for a lot of the funding. He indicated that the budget that is being requested for June is probably within the budgeted revenues for next year and doesn't impair the CIP budget; however, he emphasized that everyone needs to get out and generate sponsorships. He thanked the Daily Pilot for their donation and in -kind contribution. Mayor Bromberg reported that the 160 volunteers are well-known community leaders who support this. He announced that a businessman has expressed a sincere interest in contributing $60,000 to $65,000 towards the Rose Bowl float. He reported that he will be meeting with the head of one of the largest companies in the country that's based in Newport Beach who has expressed an interest in participating in the Centennial. He noted how much money and in- kind services they have received without even asking yet. Council Member Heffernan stated that he is also impressed with the volunteers but asked how this compares with the Corona del Mar Centennial. Recreation and Senior Services Director Knight stated that she wasn't involved in their Volume 56 - Page 204 City of Newport Beach Study Session Minutes May 10, 2005 INDEX Centennial. Mayor Bromberg clarified that the direction from the Steering Committee was to not go into professional fundraising unless we had to. He indicated that Council can look into setting aside funds for this if the need arises; however, noted that professional fundraising is incredibly expensive and the City doesn't want to have a fundraiser who takes a percentage. He agreed that all options are open. Dayna Pettit, Co -Chair of the Fundraising Committee with Sandy Haskell, reported that Ms. Haskell has made several calls and she has sent out letters. Further, they are setting up meetings with some of the major companies in the City. She indicated that Council will be surprised and beheved'thaf this situation is an easy fundraising effort because Newport Beach is a wonderful, first -class city and everyone wants to be a part of its Centennial.. She, agreed that, by hiring a professional fundraiser, a great percentage._ of whatever is raised will go back to them. Council Member Ridgeway clarified'xhat the lily is behind this celebration and has already committed-; +substantial dollars;, Ms. Pettit indicated that, when they go to meetings, they try to take the Mayoxj or other Committee member with them to show that the City is behind this. Council Member Heffernan asked who is doing Recreation and Senior Services Director Knight's job while she has been working on this. Mayor Bromberg introduced Janis Dinwiddie who is the project manager for the Centennial. Janis Dinwiddie, Dinwiddie Events, stated that she is a resident of the City and has been producing events since the late 1970s.'She highlighted her career and indicated that she has done nearly 4,500 events; ,including running the Distinguished Speakers Lecture Series. Regarding the' Centennial, she is working closely with Recreation and Senior Services birector Knight whose responsibilities will be transferred to her. She confirmed that she will be the project manager for all the events. Recreation and Senior Services Director Knight reported that _Ms. Dinwiddie has a desk and computer in the Public Information Officer's office. She stated that this is a big project and she and Ms. Dinwiddie will continue to work closely together because there's a lot of coordination that need„ to take place with the City. She indicated that she will still he involved in the Centennial. but Ms. Dinwiddie will take the lead as the project manager' Bernie Svalstad stated that he has reviewed what the Steering Committee has done and agreed that they have done an excellent job getting started. He believed that the Committee will raise $1 million with no problems and without professional help because they're going about it the right way. He asked who will do the marketing for the celebration. Peggy Fort, Executive Director of the Corona del Mar Centennial Foundation, stated that a $1.2 million budget is a large sum of money, noting that her foundation started with $20,000 and became a 501(c)(3) organization to aid in their ability to get donations. She believed that marketing and fundraising need to be differentiated. She emphasized the importance of having a strong marketing/PR campaign since it isn't easy to raise that much money. She stated that her foundation was fiscally responsible with how they spent money and that this budget is night and day compared to what they spent in Corona del Mar. She believed that the budget needs to be looked at closer. Mayor Bromberg noted that there are 80,000 people in Newport Beach, including Corona del Mar's 11,000. Further, the City doesn't need to set up a 501(c)(3) Volume 56 - Page 205 City of Newport Beach Study Session Minutes May 10, 2005 INDEX because they are automatically tax exempt since they are a municipality. City Manager Bludau expressed the opinion that, knowing that there is a contentious City Hall item on tonight's agenda, it is nice to hear that people are willing to step up to celebrate this community and show how proud they are of it. Mayor Bromberg stated that Council works with staff and believed that the effort they've been putting into this has been incredible. He indicated that he is proud of the people who work for the City. City Manager Bludau acknowledged Recreation and Senior Services Director Knight and her department for functioning well while she was involved with the Centennial. Fiscal Year 2005 -2006 Budget Overview City Manager Bludau utilized a PowerPoint presentation and reported that his responsibility as City Manager is to present a budget for Council consideration since it is the major policy document. He stated that how.Counc:il spends the money should reflect Council's priorities. He outlined the budget provisions according to the City Charter. Administrative Sen ices Director Danner reviewed the nine month budget preparation process that has been the same for quite awhile. City Manager Bludau indicated that the organizational chart is the same, they aren't looking at relocating any divisions, and the organization is status quo based on the budget being presented. Administrative Services Director Danner reported that they budget revenues using known factors, historical analysis, State and County issues. the economy, economic development, growth expectations, and department input. He displayed a revenue pie chart and reported that the total Budgeted revenue for the 2005 -2006 proposed budget is almost $176 million. He noted that the largest single revenue source comes from property tax (32 %). City Manager Bludau added that the property tax source made up 26% of the revenue budget last year. Administrative Services Director Danner noted that the total General Fund revenue for the current fiscal year is projected to be $117.6 million and the total revenue for the budget being proposed is $119.6 million which is a growth of 1.68 %. He reported that, while putting together the 2004 -2005 budget, they knew that the.State was going to hit the City with an additional loss of revenue but they didn't know . what form it was going to take. He indicated that, due to SB1096, the City lost abnost all of its Vehicle License Fees (VLF); however, that money is being replaced by the State through the County in the form of property tax. He added that the City also lost 25% of the sales tax to pay off the State recovery ;bonds. However, this money is also being replaced by the State through the County as property tax. He reported that the budget now has two new categories Property Tax in Lieu of Sales Tax and Property Tax in Lieu of VLF. He stated that the Property Tax in Lieu of Sales Tax will last for the life of the State recovery bonds which is estimated to be 11 years, and the Property Tax in Lieu of VLF is a permanent revenue source. In response to Council Member Heffernan's questions, City Manager Bludau stated that the revenue change was already calculated because, in the 2004 -2005 budget, the City budgeted for \7I,F and the sales tax that it thought it would normally get. Regarding the Lexus sales tax sharing contract, he indicated that the City is using the right rules because the Lexus dealership is going to be paying the State 7.75 %. He explained that, even though the City's amount of sales tax will be reduced, the City will get it back in the form of property tax since the agreement with Lexus stipulated an amount equivalent to a Volume 56 - Page 206 City of Newport Beach Study Session Minutes May 10, 2005 INDEX percentage of the sales tax. Administrative Services Director Danner emphasized that the sales tax replacement through property tax is being replaced dollar - for - dollar. He indicated that this is the first time the State has done anything to the sales tax. He confirmed that the 25% that is being replaced for a limited time is being replaced dollar - for -dollar and that, after the 11 years has expired, the old system will be reinstated. City Manager Bludau reported that the sales tax is paid to the State Franchise Tax Board (FTB) so there are records. Administrative Services Director Danner added that none of the City's audit procedures will change because the City will still get three - fourths of what it was getting and reiterated that 25% of what the CiEy, was getting is now getting in the form of property tax. In response to Council questions, Administrative Services Diieefor Danner reported that the City receives the assessed value for Newport Beach every August. City Manager Bludau added that it is $26.04 billion- %'Administ ative Services Director Danner reported that the money that u generated from a0* City property or rental and any return on investment is places in the °Use'of Money and Property" revenue category. City Manager Bludau stated that the City has individual agreements with Beacon Bay - homeowners. Further, the Balboa Bay Club has an agreement with the City to—'share a'certsin percentage based on the fees they collect. Administrative Services Director Danner referred to page 6 of the Revenues section of the budget and noted`'t ikUse of Money and Property is almost $7.9 million, not counting tidelands. Administrative Services Director Danner repo ted,that three.revenue sources make up almost 57% of the $119.6 million. He indicatedthat'Secured Property Tax is $41.2 million, Sales Tax is $18.7 million; andTraneient Occupancy Tax (TOT) is about $8 million. He explained that sales tax is being reduced but property tax is being increased. He indicated that the City experienced a large decrease in TOT after9.11 and is just now getting back to where it was prior to 9.11. Further, there are new timesharesfhotels. City Manager Bludau added that hotels have been putting's lot of money into their facilities, so their room rates are going up. Administrative Services Director Danner added that the Conference and Visitors Bureau (CVB) has also done a good job marketing. He indicated that he reads the business sections and there is a lot of talk about how well the hotel industry is doing. He clarified that the revenue detail is broken down between hotelsand rentalunits, and estimated that about $800,000 of the $8 million comes from rental units. He confirmed that this is constantly audited. City Manager Bludau'displayed slides of how they estimate expenditures and a pie chart of the expenditures. He indicated that, based upon the revenue and expenditure ceiling assumptions, the departments could propose to raise their budgets by 2 %, which doesn't include personnel. He stated that, if a department feels they cannot stay within that ceiling, then they talk about what those items are and determine whether the item can or cannot be funded. He reported that the $186.9 million budget includes $13 million of internal charges. He explained that internal eharges are moneys collected that go into internal funds that may or may not be spent this year. He indicated that, since they're set aside, they're considered expenditures. He explained that internal funds include workers compensation and vehicle leasing, purchasing, and maintenance. He stated that each department is charged a rate for workers compensation and general liability. He reported that this number is not only shown in the department's operating budget, but explained that actual expenditures made for workers Volume 56 - Page 207 City of Newport Beach Study Session Minutes May 10, 2005 INDEX compensation or liability claims come out of this joint service fund. Administrative Services Director Danner indicated that $95.6 million is budgeted for salaries and benefits; $47.5 million is for maintenance and operations; and the capital outlay is about $3.5 million. He stated that debt services is just under $4.1 million which is a small amount for a city of this size. He reported that the CIP budget of $36.1 million will be reviewed at the third study session. City Manager Bludau explained that capital improvement projects deal with infrastructure, i.e. sewer, water lines, pump stations, bridges, street work, sidewalks, the City Hall facility; and capital outlay expenditures_ are physical purchases that departments make, like computers, desks; etc. Administrative Services Director Danner reported that the two large items that the City pays debt service on are water revenue bonds ($1.2 million a year) and library COPs ($1 million). He added that debt service also includes leases on major computer equipment, and a boat loan from the State Water Agency for the Balboa Yacht Basin. He noted that there is a complete listing in the budget. Administrative Services Director Danner reported that. based on the Finance Committee meeting comments from yesterday, he created the General Fund Summary slide that shows the outflow and inflow for fiscal years 2004 -2005 and 2005 -2006. He noted that the proposed 2005 -2006 end fund balance is almost the same amount as the 2004 -2005 end fund balance. He displayed a slide containing the special reserve funds and reported that it follows Council policy. He noted that the City has been concerned with PERS rates for years and built a $9 million reserve to help fund it, but the City has been fortunate that it hasn't had to use it. He indicated that they're proposing in this budget to move $4 million from the PERS reserve and $2 million from the appropriation reserve to establish a reserve for capital improvements. Regarding this reserve, City Manager Bludau stated that the City has not done a good job with assessing the quality of its structures and having a long range plan. He indicated that he would like the City to do an assessment of its facilities and set money aside. Regarding City Hall, Council Member Rosansky asked if it would be prudent to use some of the capital improvement reserve rather than incur the debt service for the entire cost- Citv Manager Bludau indicated that it depends on what Council's priorities are because there might be other projects the City wants to use the reserve for. He stated that, if Council moves forward with City Hall by using some of the reserve, it might not be able to take care of other needs which may be. too small to have a bond issue. He indicated that, if the City is looking at three facilities, it might be best to put them under one funding mechanism since there. wiU be a''lot of smaller projects that might have cost overruns because of the: construction climate. Administrative Services Director Danner stated that, when he started with the City, they were able to invest the funds at a higher rate than they could borrow the money at. He indicated that it makes sense to borrow the money if they can borrow it at 4.5% and invest it at 5 %. He stated that the City is probably earning about 3% right now and it probably wouldn't be able to borrow money at that rate. City Manager Bludau reported that the City has set aside $10 million over the last four years because of some things that they could see coming. He believed that the City should put as much money into the reserve as possible because the City is already committed to projects. He explained that conducting a facility assessment is one of staffs top ten priorities. He stated that they wanted to start with the critical facilities (police department, fire stations, and lifeguard headquarters) because there are real needs there and the City needs to deal with public safety facilities first. He Volume 56 - Page 208 City of Newport Beach Study Session Minutes May 10, 2005 INDEX believed that, in the next four to five months, they should be able to come back with an assessment as to the useful life of the major components of the buildings and what it would entail to remedy them. Council Member Heffernan noted that, at the Finance Committee meeting, the revenue discussed was $109 million, but $117 million is being discussed today. Administrative Services Director Danner explained that, except for any budget amendments, the money remains in the end fund balance. He indicated that this is less because the City is spending the prior year's CIP money. He indicated that the City hasn't faced the problem of revenue not coming.iii: since the mid- 1990's. City Manager Bludau displayed a slide of the budgeted full-time positions. He pointed out that they added 43 employees in 2001 -2002 due to the annexations, but if you added the 43 employees to the 763 employees from'1992 -1993, it is only ten more employees than what is being proposed f*..2005 -2006. C6'aixdl. Member Ridgeway indicated that Assistant City Manager Kiff wrote a memo to a citizen that broke down how the City outsources. He stated that it is unfortunate that they haven't had the memo for a study session but suggested incorporating it into budget discussions. City Manager Bludaii noted that they have not put that type of information together until the memo. Council Member Ridgeway stated that the memo puts the City's emplo} meat base. PF.RS, and other issues into perspective. City Manager Bludau reported that the Administrative Services Department is requesting a Fiscal Clerk and a Budget Analyst. He indicated that they believed that the annexations would impact the Administrative services Department, but wanted to keep the same amount of people.: However, the impact has been so great that they need these positions in order to keep up with the accounting and revenue work. He stated that the MIS Specialist in the Police Department is changing from part -time to full -time, but the Police Department is eliminating two part -time positions in order to add up to a full -time position. He reported that the Planning Department Office Assistant position will change from part - time to full -time due to the amount of workload they have. He indicated that the Library is requesting two Library Assistants, but a Library I position and two part -time positions are not going to be filled. He reported that the Recitation and Senior Services Department is requesting a Park Groundsworker 11 position in order inspect the playground equipment at the 48 locations twice a week.`FIe stated that there is a liability for the City if it doesn't do this, noting that most cities are already conducting regular inspections. He reported thatt,the Public Works Inspector position is a new position. He indicated that;'-although a part -time position has been deleted, they believe that this position wBI'completely be paid for by the underground utility districts. Council Member Rosansky emphasized that, although these are eight new full- time positions, the City is eliminating a number of part -time positions and, therefore, not really adding eight new bodies. He pointed out that, because the Revenue Division is doing such an excellent job collecting revenue that has been previously uncollected, the work in that division has exploded. He stated that the revenue collected is really covering the position, and then some. In response to Council questions, City Manager Bludau reported that Council has already added positions to the Building Department to help deal with the backup, including adding a Plan Checker this fiscal year. He added that, last year, there was talk about adding positions so they could reduce the amount of Volume 56 - Page 209 City of Newport Beach Study Session Minutes May 10, 2005 outside plan checks that were taking place. He reported that the volume is so great that they're still sending a lot to outside plan check. Administrative Services Director Danner noted that they will also be coming back to Council the first meeting in July with a new fee schedule. City Manager Bludau displayed a slide regarding PERS rates and reported that the rates are going up again this year; however, he believed that they will peak and start decreasing slowly. He indicated that the City set aside money for PERS because it thought it would need to use some of the reserve. He pointed out that they were able to fund all the increases over the last three years with the ongoing revenues for those years. He noted that there are 877 employees eligible for PERS, but emphasized that this includes the 594 part -time employees that average more than 20 hours a week. City Manager Bludau displayed the new developments and pending issues. Ile stated that the 2005 -2006 proposed budget is balanced, it doesn't rely on any use of reserves, and all reserves are fully funded. He expressed hope that this is the . last year of ERAF III in which the City loses $2.2 million in property tax to the State. He reiterated that they increased the reserve for capital improvements and reduced the PERS reserve. He reported that the proposed budget includes $5.4 million in increased departmental operating expenditure;. He stated that there are limited funds for employee contract adjustments Without objection, Mayor Bromberg requested that the next budget study sessions begin at 3:30 p.m. PUBLIC COMMENTS — None. ADJOURNMENT — at 6:08 p.m to Closed Session. The agenda for the Study Session was posted on May 5, 2004, at 4:10 p.rrL on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Buiiding. City Clerk Recording Secretary Mayor Volume 56 - Page 210 INDEX CITY OF NEWPORT BEACH City Council Minutes Regular Meeting Q ^ May 10, 2005 - 7:00 p.m ' `AFT INDEX STUDY SESSION -4:00 p.m CLOSED SESSION - 6:10 p.m A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Rosansky, Webb, Ridgeway, Daigle, Nichols, Mayor Bromberg Absent: None C. CLOSED SESSION REPORT - None D. PLEDGE OF ALLEGIANCE - Council Member Ridgeway E. INVOCATION — Reverend Dr, George R. Crisp, Christ Church by the Sea United Methodist F. PRESENTATIONS Presentation of Check from the Friends of the Library. Martin Flink, Treasurer of the Friends of the Library, presented a facsimile check in the amount of $200,000 to Harry Hamilton, who accepted the check on behalf of the Board of Library Trustees. Funding of Athletic Complex at Estancia High School. Gordon Bowley, Costa Mesa United, stated that Costa Mesa United is dedicated to raising $9.2 million for an aquatic center at Costa Mesa High School and a football stadium, track & field and soccer field at Estancia High School. He acknowledged Paul Salata who was in the audience at the current meeting and a supporter of the effort. Council Member Ridgeway stated that the reason that Costa Mesa United is making a presentation at a City of Newport Beach meeting is that a football stadium and aquatic center would provide a regional and mutual benefit to the entire community. Council Member Rosansky agreed that it would provide a great benefit to Costa Mesa and Newport Beach. He requested that the possibility of Newport Beach providing funding for the project be considered in the 2005 -2006 budget. Relay for Life Proclamation. Mayor Bromberg presented a proclamation Volume 57 - Page 211 City of Newport Beach City Council Minutes May 10, 2005 INDEX proclaiming May 13 — 14, 2005, as Relay for Life Days, to Anna Lisa Biason. Ms. Biason acknowledged the contributions of the executive committee, many of who were present at the current meeting, and announced that over $50,000 has been raised for this year's event. Donations can still be made through the event's website at www.acsevents .ore /relay /ca /newportbeach. Lastly, Ms. Biason acknowledged Wang, Hartman & Gibbs, a platinum sponsor. First Team Real Estate Invitational Regatta Race Week Proclamation. Mayor Bromberg presented a proclamation proclaiming May 16 through May 22, 2005, to be First Team Real Estate Invitational Regatta Race Week, to Jay Swigart and Jim Madden, co- chairs of the Regatta. Mr. Swigart acknowledged First Team Real Estate, the title sponsor of the event, and stated that the event will raise funds for the Hoag Heart & Vascular Institute. UCLA Day Proclamation. Mayor Bromberg presented a proclamation proclaiming May 23, 2005, as UCLA Day, to Anna Lisa Biason, Richard Ward and Gary Bittner. Ms. Biason announced that Mr. Ward and Mr. Bittner are the founding co- chairs of the UCLA Orange County Golf Classic. Poppy Week Proclamation. Mayor Bromberg presented a proclamation proclaiming May 15 — 21, 2005, as Poppy Week. Esther Clark introduced Miss Poppy, Rachel Heideman, who read a poem recognizing the importance of the poppy and its representation as a symbol of the price of war and the sacrifices of millions. Nine - year -old Rachel presented a poppy to each of the council members. G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON- DISCUSSION ITEM): Council Member Nichols stated that Parks, Beaches & Recreation Commission recently addressed Council Policy G -1, Retention or Removal of City Trees, in regard to reforestation at a residence in Harbor View South. He stated that the result of the hearing was a tie vote. He requested that the item be addressed by the City Council. Council Member Heffernan referred to a recent accident involving a cement truck at Newport Coast Drive and Ridge Park Road. He noted that the nearby school was in session. He requested that the City Council address traffic at that intersection. Council Member Heffernan referred to a letter he recently received from the Revenue Division regarding a requirement to obtain a business license. He requested that the City Council address the issue. He noted that a private pier permit on the bay costs less than obtaining a business license. Council Member Ridgeway noted that the issue was addressed by the City Council at a recent Study Session. He suggested that Council Member Heffernan speak with the Revenue Division Manager. Volume 57 - Page 212 City of Newport Beach City Council Minutes May 10, 2005 Mayor Bromberg additionally noted that the Revenue Division looks at each business license appeal on a case -by -case basis, and that approximately half of them are dismissed. Mayor Bromberg announced that he represented the City earlier in the day at an Orange County Mayors Pie Eating Contest, benefiting the Make - A -Wish Foundation. Mayor Bromberg announced that the 12th Annual Balboa Island Parade will take place on June 5, 2005, at 11:00 a.m. He stated that this year's parade will be dedicated to Helen Wick. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF APRIL 26, 2005. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCE FOR ADOPTION 3. AMENDING CHAPTER 14.36 OF THE NEWPORT BEACH MUNICIPAL CODE TO OBTAIN CONSISTENCY WITH 15 DAY APPEAL PERIOD. Adopt Ordinance No. 2005 -6 amending Chapter 14.36, Section 14.36.060. CONTRACTS AND AGREEMENTS 4. RESOLUTION OF INTENTION AND ORDINANCE TO APPROVE AN AMENDMENT TO PERS CONTRACT TO PROVIDE PRE - RETIREMENT OPTIONAL SETTLEMENT DEATH BENEFIT TO SAFETY EMPLOYEES. 1) Adopt Resolution No. 2005 -24 A Resolution of Intention to Approve an Amendment to Contract Between the Board of Administration, California Public Employees' Retirement System and the City Council of the City of Newport. Beach; and 2) introduce Ordinance No. 2005 -7 An Ordinance of the City Council of the City of Newport Beach Authorizing an Amendment to the Contract Between the City Council of the City of Newport Beach and the Board of Administration of the California Public Employees' Retirement System, and pass to second reading on May 24, 2005. 5. JAMBOREE ROAD — MACARTHUR BOULEVARD INTERSECTION IMPROVEMENTS — COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3369). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and Volume 57 - Page 213 18013 � (100 -2005) C -563 (381100 -2005) C -3369 (38/100 -2005) City of Newport Beach City Council Minutes May 10, 2005 4) release the Faithful Performance Bond one year after Council acceptance. 6. Item removed from the Consent Calendar by Council Member Nichols. MISCELLANEOUS ACTIONS 7. BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE FRIENDS OF THE NEWPORT BEACH LIBRARY AND APPROPRIATE FUNDS TO FY 2004 -05 MARINERS LIBRARY PROJECT. Approve a budget amendment (05BA -060) to increase revenue estimates by $200,000 in Account No. 450 -5892 (Library — Friends of the Library) and increase Mariners Library expenditure estimates in 7451- C5100803 (Mariners Library Children's Room) by $200,000. 8. Item removed from the Consent Calendar by Council Member Heffernan. Motion by Mayor Pro Tern Webb to approve the Consent Calendar, except for those items removed (6 and 8). The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Webb, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Due to the expected length of the current meeting and noting that members of the public were present to speak on Item No. 8, Mayor Bromberg suggested that it be taken out of order. No objections were heard. 8. AMENDMENT TO SPECIAL TREE LIST. Council Member Heffernan noted that the ficus tree was being recommended for Clay Street on the special tree list. He stated that the City recently paid a six - figure settlement involving ficus trees on Clay Street. He expressed his concern that including them on the special tree list could result in additional settlements. City Manager Bludau confirmed that the City did pay for damage to private property caused by a ficus tree on Clay Street. He noted, however, that the City is taking precautions to save the ficus trees on Clay Street and reduce the damage that they might cause. He stated that it's too soon to know if the efforts will be successful. Council Member Heffernan asked if the risk should be taken. City Manager Bludau stated that it's difficult to weigh the value that the trees would provide in terms of the ambience they add to the residential character of the neighborhood versus their potential liability. Mayor Pro Tern Webb noted that the recommendation is for ficus trees on Clay Street, from Irvine Avenue to St. Andrews Road, which is an area Volume 57 - Page 214 Q11)�►� (100 -2005) (100 -2005) City of Newport Beach City Council Minutes May 10, 2005 that is different from the other parts of Clay Street due to the front yard setbacks. Motion by Mavor Pro Tem Webb to approve the revisions to the Special Tree List based upon the recommendations of the Parks, Beaches and Recreation Commission, as amended to add the coral tree on Dover Drive in front of the Mariners Library to the landmark tree list. Dr. Jan Vandersloot stated that he served on the Special Tree Committee. He urged the City Council to approve the recommended action, and stated that preventative maintenance of ficus trees can be successful. Debra Allen, Special Tree Committee Chair, also asked for the City Council's approval of the recommended action. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Webb, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None J. PUBLIC HEARINGS 9. COOPERATIVE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND THE FRIENDS OF OASIS. City Manager Bludau thanked those involved in working on the new agreement, and stated that it does a better job of defining the working relationship between the Friends of Oasis and the City than Council Policy B -5, Oasis Senior Center Operation and Relationships. Mayor Bromberg acknowledged Mayor Pro Tem Webb and Council Member Ridgeway who served on the negotiations committee. He agreed that everyone seems to be satisfied with the new agreement. Ed Romeo, President of the Friends of the Oasis, expressed his happiness with the proposed agreement. Mayor Pro Tem Webb acknowledged Mr. Romeo's contributions. Council Member Ridgeway stated that there had previously been miscommunication, and everyone should be acknowledged for a process that took eighteen months and really should have been done years ago. Council Member Daigle also acknowledged Evelyn Hart for her contributions, and noted that she was in attendance at the current meeting. Dolores Otting referred to, and read, the renovation section of the agreement. and stated that the public should be aware that a new center Volume 57 - Page 215 �Ifi��3 C -3772 (38/100 -2005) City of Newport Beach City Council Minutes May 10, 2005 could be built. She asked if money given to Oasis is considered tax deductible and if the formal meetings referred to in the agreement would be agendized. Council Member Nichols stated that an audit of Oasis suggested that Oasis should have their own newsletter to maintain their 501(c)(3) status for such things as mailings. Recreation and Senior Services Director Knight stated that it has been determined that the newsletter is a newsletter about all of the activities at the center and will be a joint venture. Mayor Pro Tern Webb referred to the newsletter section of the agreement and stated that the matter has been discussed in great detail. In response to Council Member Nichols' question, City Manager Bludau stated that the City is tax exempt. Only private companies have to set up 501(c)(3)'s. Council Member Ridgeway stated that Oasis is not in violation of their 501(c)(3) status by working with the City on the newsletter. Motion by Council Member Ridgeway to approve Cooperative Agreement between the City and the Friends of OASIS and repeal Council Policy B -5. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Webb, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 10. REVIEW OF THE COMMUNITY DEVELOPMENT BLOCK GRANT FISCAL YEAR 2005 -2009 CONSOLIDATED PLAN AND THE 2005 ONE -YEAR ACTION PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (contd. from 4/12/05). Council Member Ridgeway stated that every year, the council members receive individual correspondence from the charitable organizations who want to be considered for grants. He suggested that for future years, an ad hoc committee of two council members be established to review the applications and requests. He felt that it would be appropriate and would save a lot of time. Economic Development Program Administrator Trimble summarized his staff report and stated that one of the key elements of the consolidated plan is the identification of specific funding strategies. The City allocates the Community Development Block Grant (CDBG.) funds to programs and projects that significantly contribute to the City's efforts to meet the goals and objectives of established funding priorities, which include affordable housing, special needs groups, homeless housing and services, and non- Volume 57 - Page 216 INDEX (100 -2005) City of Newport Beach City Council Minutes May 10, 2005 INDEX housing community development. Mr. Trimble stated that the City expects to receive approximately $412,000 in CDBG funds for the 2005- 2006 fiscal year. The staff report includes the draft copy of the action plan and what is anticipated to be funded. He listed the CDBG regulations and Department of Housing & Urban Development (HUD) policies that must be adhered to by the City, provided a brief history on previous funding, and explained the process and criteria used for selecting the public service programs that receive grants. He distributed a handout giving the history of the funding allocation for fiscal years 2002 -2003 through 2004 -2005. Council Member Daigle noted the $80,000 left over from the previous year and asked what the limitations are on how it can be used for the upcoming fiscal year. Mr. Trimble stated that the money can be used for CDBG eligible activities. It can not be used towards administration. Council Member Daigle noted that there will still be a shortfall and asked if funds were available elsewhere in the City's budget. City Manager Bludau stated that the money could possibly come from the general fund and could be included in the upcoming budget discussions. Council Member Heffernan noted that the administrative costs are approximately $70,000 and that $62,000 is being given to the private sector. He stated that it seems inefficient. Mr. Trimble agreed that it might look ridiculous, but is explained by the extensive reporting and monitoring requirements placed on the program by HUD. He additionally noted that the administration is for the overall grant of $412,000. Council Member Heffernan asked if any changes in the program were expected. Assistant City Manager Wood pointed out that the City does not use the maximum allowed by HUD for administration. Secondly, she noted that in -house administration was attempted for several years and it was decided that it was better to use a consultant due to their familiarity with the requirements. Council Member Nichols asked what the benefits of the program are. Assistant City Manager Wood stated that the benefits of the program include the City being able to provide funding to a number of social service agencies in the community and other local benefits, such as the public improvements in Balboa Village and Americans with Disabilities Act (ADA) improvements to public sidewalks. She agreed that it's a difficult program to administer, however. Mr. Trimble added that the improvements to Balboa Village included a loan, which is being repaid against future grant proceed allocations. City Manager Bludau stated that the City knew it would be indebted. The City is four years into the 20 -year loan. Council Member Ridgeway noted that if the Federal government decides to abolish the CDBG program, the debt is forgiven. Mayor Bromberg opened the public hearing. Jean Wegener, Executive Director of Serving People In Need (SPIN), stated that SPIN successfully serves the disabled and the chronically homeless. She thanked the City for the recommended funding of 88,000, Volume 57 - Page 217 City of Newport Beach City Council Minutes May 10, 2005 INDEX but stated that she is disappointed that SPIN's funding was reduced from what was recommended earlier in the year. She stated that they are aware of the CDBG cuts, but SPIN has exceeded its goals. She asked the City Council to reinstate their original allocation of $9,000. Paula Neal Reza, Director of Development for Wiseplace, a transitional shelter for women in Santa Ana, also thanked the City for the recommended funding of $4,500 for the 2005 -2006 fiscal year. She stated that since 1987, Wiseplace has helped more than 6,000 women find a job. She stated that they are continuing to help women and appreciate the City's support. Marilyn Dittie, Executive Director for South County Senior Services, stated that her company has provided meals to seniors for over 24 years. This past year, over 22,457 meals were served to homebound seniors. She thanked the City for the $7,000 allocation and stated that it offsets the donations received from the seniors. Larry Haynes, Executive Director of Mercy House, stated that Mercy House provides an in -house continuum of services to a variety of homeless populations. He thanked the City for its support in the amount of $4,500. Dick Crawford, Chairman of the Board of SPIN, expressed his dissatisfaction with the CDBG program and the fact that it allows 20% to be used for overhead administration. Secondly, he stated that SPIN exceeded what it was asked to do and yet is being cutback in its allocation. City Manager Bludau pointed out that the City does not use the 20% permitted for administration and that the minimum allocated to administration can't be used for public service programs. Assistant City Manager Wood added that the administration is not just for the public services portion of the grant, it's for administration of the entire program. Lydia Pettis, Human Options, stated that domestic violence is a terrible thing and Human Options is successful in transforming the lives of the families affected by it. She stated that it's important to fund and she thanked the City for the $3,333 allocation. Jim Hildreth stated that an audit should be done on where the money is going and how it is being used. Hearing no further testimony, Mayor Bromberg closed the public hearing. Mayor Bromberg stated that he is disappointed by the negative comments heard. Motion by Council Member Ridgeway to 1) approve the 2005 -2009 CDBG Consolidated Plan and the Action Plan; 2) authorize the City Manager or his designee to execute the FY 2005.2006 CDBG Program Grant Agreement and all related documents on behalf of the City; and 3) adopt Resolution No. 2005 -25 authorizing the City Manager to submit the FY 2005 -2009 application for CDBG funds, the 2005 -2009 Volume 57 - Page 218 City of Newport Beach City Council Minutes May 10, 2005 Consolidated Plan and One -Year Action Plan to HUD. Council Member Ridgeway added that the City is giving the maximum amount of money it can and is doing its best. He, too, stated that he is disappointed with those that complained about the amount they received. Council Member Daigle requested that additional funding be considered in the 2005 -2006 budget. Council Member Heffernan presented a personal check in the amount of $500 to SPIN. He stated that they are doing great work and hoped that they meet their funding goals. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Webb, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Mayor Bromberg stated that the public service programs are doing great work and he asked that they consider the laws that the City is bound by. 11. DRAFT FINAL ENVIRONMENTAL IMPACT REPORT (SCH 2004081004), GENERAL PLAN AMENDMENT NO. 2004 -004, PLANNED COMMUNITY TEXT AMENDMENT NO. 2004 -003, USE PERMIT NO. 2004 -026, MODIFICATION PERMIT NO. 2005 -030, TRAFFIC STUDY NO. 2004 -003 FOR NEWPORT LEXUS AUTOMOBILE DEALERSHIP (PA 2004 -153). Council Member Ridgeway stated that he wasn't sure if he has a conflict of interest, but would be recusing himself from the item as a precaution. Casey Griffin, Wilson Automotive Group, stated that he is the project manager for Newport Lexus and announced that escrow closed on the 8- acre property on April 28, 2005. He displayed the site plan for the project, and pointed out the location of the service building, inventory storage, sales showroom, customer lounge, and the three driveways that access the property. He showed how traffic would flow on and off the property. Additionally, he pointed out the landscape setbacks on Jamboree Road, MacArthur Boulevard and Dove Street. Mr. Griffin then displayed views of the property from four different locations, with each showing the current view of the property and the view with the site plan imposed into the image. Council Member Heffernan asked if the recommended action before the City Council at the current meeting included the third tier of the parking structure. Mr. Griffin stated that it is the intention of the Wilson Automotive Group to accommodate a third level at a later date. Assistant City Manager Wood stated that the planned community text would not have to be amended, but the use permit would if the third level were Volume 57 - Page 219 INDEX (100 -2005) City of Newport Beach City Council Minutes May 10, 2005 INDEX added. Council Member Heffernan confirmed that the Planning Commission would have to approve an amendment to the use permit. Council Member Nichols asked if the height of the structure, as currently proposed, is 35 feet. David Lepo of Hogle- Ireland, Inc. and the City's contract planner for the project, stated that the planned community text currently has no height limit for the site. The amendment before the City Council at the current meeting would set the height limit at 50 feet. The parking structure as currently proposed is 35 feet high with two stories and rooftop parking. Mr. Lepo stated that the proposed 50 -foot height limit would allow for one more level on the structure. Council Member Nichols asked what the purpose and construction of the six-foot fence on Dove Street is. Mr. Griffin stated that it's a stone wall and is behind the ten -foot landscape setback. Using the site plan on display, Mr. Griffin pointed out how cars would be delivered to the dealership. In response to Council Member Daigle's question, Mr. Griffin explained that the purpose of the special events hospitality room, which was originally referred to as a "wine bar ", is to provide a comfortable place for customers to wait while they're at the site. He added that it could also be used for special events, such as when new models are introduced, and that such catered events would require separate permits. Council Member Daigle thanked Wilson Automotive Group for investing in Newport Beach. Referring to the site plan on display and the new driveway being proposed on MacArthur Boulevard, Council Member Heffernan asked if the traffic issues associated with the new driveway were addressed. Assistant City Manager Wood confirmed that such issues were raised and discussed by the Planning Commission. Serine Ciandella of kimley -Horn & Associates, Inc., the firm that conducted the traffic studies for the project, stated that the situation with the right turn lane from Bowsprit Drive to MacArthur Boulevard and the fact that it is free flowing with a wide radius, which allows vehicles to make the turn at a fairly high speed, was addressed by determining that the applicant should be required to reconfigure the right turn lane to a normal intersection radius, which would reduce the speed of the vehicles and increase the distance from the intersection to the new driveway. Council Member Heffernan stated that he thought that the new driveway was only going to be used for ingress and not egress. Ms. Ciandella stated that the plans reviewed by Kimley -Horn showed the driveway as being used for both ingress and egress. Using the site plan on display, she showed how the flow of traffic was expected to occur on the site. Council Member Heffernan stated that the drivers that would exit the site via the new driveway and then want to turn left onto Jamboree Road would be presented with a highly dangerous situation in trying to cross four lanes of traffic on MacArthur Boulevard. He suggested that it would be better to have the vehicles exit the site onto Dove Street, take a right on Bowsprit Drive and then have the greater distance to cross the four lanes of traffic. Council Member Nichols pointed out that vehicles do need to be at an increased speed when turning from Bowsprit Drive to MacArthur Boulevard in order to be able to merge into the traffic. Ms. Ciandella Volume 57 - Page 220 City of Newport Beach City Council Minutes May 10, 2005 INDEX agreed that the lower speed turn will require drivers to wait for larger gaps in traffic. She added that the driveway access is conceptual at this point, and will undergo further engineering review before it's approved. Council Member Heffernan suggested that it be determined at the current meeting if ingress only should be allowed at the new driveway. Mr. Lepo stated that the Planning Commission had similar concerns and as a result, added a condition of approval that requires the applicant to work with the traffic engineering staff to devise signs on the site that advice drivers to exit on Dove Street if they plan to access the left hand turn lane on MacArthur Boulevard. Council Member Heffernan confirmed with Mr. Lepo that if the City Council desires to take action on the ingress /egress issue, the current meeting would be the appropriate time to do so. Council Member Nichols asked how the parking lot would be designed. Using the site plan, Mr. Griffin showed how the display cars would be arranged on the lot and what would be visible from the surrounding streets. Council Member Nichols asked if the Wilson Automotive Group would agree to keeping the parking structure at 35 feet in height and not ask for the third level. Mr. Griffin responded in the negative. Council Member Nichols stated that it's the only parking structure in the City on a major street. Several people in attendance at the meeting provided examples of similar situations elsewhere in the City. Council Member Daigle stated that the benefit of storing cars on site is important. Mayor Bromberg agreed that finding places to store cars is a real problem for many car dealers. Council Member Heffernan asked the applicant if he would agree to ingress only at the driveway on MacArthur Boulevard, Mr. Griffin stated that having the ability to exit off the site onto MacArthur Boulevard offers an alternative to all of the vehicles exiting onto Dove Street only. It optimizes circulation on the site. Referring to Wilson Automotive Group's desire to renegotiate the sales tax sharing agreement, Council Member Rosansky asked if the Wilson Automotive Group was prepared to move forward with the project under the current sales tax sharing agreement. Mr. Griffin responded in the affirmative. Mayor Bromberg opened the public hearing. Jim Hildreth stated that he supports ingress onto the site only at the new driveway, and suggested that lights on the site and their effect on the surrounding neighborhood also be taken into consideration. Using the site plan on display, Ron Soderling, owner of 901 Dove Street, showed the location of his building and others in the area, and noted that several of those owners were also in attendance at the current meeting. Volume 57 - Page 221 City of Newport Beach City Council Minutes May 10, 2005 INDEX Mr. Soderling stated that he and his neighbors welcome Newport Lexus to the neighborhood, but do have some concerns about traffic and maintaining the high professional character of the neighborhood. Jim Biram, Resco Properties, 901 Dove Street, complimented the applicant for working with them on some mitigation matters, and stated that they all share the same concerns. He urged the City Council to revisit the traffic issue, however, and look at some alternatives, noting that no traffic counts on Dove or Quail Streets were taken. Mayor Pro Tom Webb asked Mr. Biram what traffic problems he thought might occur on Dove Street. Mr. Biram stated that the site line distances at Dove Street and Bowsprit Drive are probably adequate, but not for the speed that the vehicles travel through the area. Mr. Biram stated that a stop sign might slow the traffic or possibly Bowsprit Drive should be converted to a one -way street. In response to Mayor Bromberg's question, Public Works Director Badum stated that stop signs are generally not used to control speed and that the installation of any stop signs or traffic signals must be justified. He added that the intersections are currently operating at a service level of "B" or better. If conditions change, a different type of control would be looked at. In response to Mayor Bromberg's question, Assistant City Manager Wood stated that the Planning Commission did address the issue. Additionally, she confirmed that traffic counts were done on Quail and Dove Streets, and both were found to operate at level of service "A" or `B ", which does not meet the warrants for stop signs. In response to Council Member Heffernan's question, Ms. Ciandella stated that the existing uses in the area generate a little over 1,000 trips per day. Newport Lexus is expected to generate just under 4,000 trips per day. Additionally, she explained that level of service is like a grade on a report card, with level of service "A" being the best that can be achieved. The target is to achieve a level of service `D" or better. The level of service is determined by the traffic counts and the number of available lanes, with the focus on the peak hours. In response to Council Member Nichols' question, Ms. Ciandella stated that the intersections of Dove Street and Bristol Street North, and Bowsprit Drive and MacArthur Boulevard were not studied. Robert Matthews, the attorney representing Mr. Soderling and Mr. Biram, stated that the only remaining issues are those dealing with traffic and mitigation measures. He explained that further traffic studies should be conducted to insure that all of the traffic issues have been addressed. In addition, he stated that some type of berming should be required on Dove Street, as well as more visual screening and enhanced landscaping. He asked the City Council to direct the applicant to meet with them further. In response to Mayor Bromberg's question, Public Works Director Badum stated that the increase in trips per day generated by Newport Lexus would not affect the current level of service `B" or better. Volume 57 - Page 222 City of Newport Beach City Council Minutes May 10, 2005 fi,2l17D►:1 Don Bowers, owner of the property adjacent to Mr. Soderling's, disagreed with not allowing vehicles to exit the Newport Lexus site onto MacArthur Boulevard because it would mean that all traffic would exit onto Dove Street. Council Member. Heffernan pointed out that there are no other driveways in the area of the MacArthur Boulevard and Jamboree Road intersection. Mr. Bowers stated that forcing all of the vehicles onto Dove Street creates a problem on Bowsprit Drive. Council Member Heffernan stated that at least vehicles are given a greater distance to get across MacArthur Boulevard. Fred Fellows, owner of the building across the street from Newport Lexus, stated that the issue is one of safety. He stated that the intersection of Bowsprit Drive and Dove Street is already difficult to navigate. He suggested that something be done to slow the cars down on Dove Street. Laura Dietz, member of both GPAC and EQAC, agreed with Council Member Heffernan that the City needs to err on the side of safety. She stated that MacArthur Boulevard is a fast street and agreed that more traffic studies should be done. Dolores Otting, member of EQAC, read from an EQAC report that concluded that additional traffic studies for the Newport Lexus project should be done, and specifically with regard to the new proposed driveway. She also stated that additional information about the financial agreement should be provided. Ray Halowski, member of EQAC, confirmed that EQAC was opposed to vehicles being able to exit from the new proposed driveway. Dr. Jan Vandersloot agreed that a serious traffic safety problem is being created and that it would be better to err on the side of safety. He suggested that another traffic analysis be done. Secondly, Dr. Vandersloot stated that Newport Lexus should not be receiving any of the sales tax that they generate. And, thirdly, he suggested that the applicant be required to keep the existing trees in their landscaping plan. He stated that the larger and more mature trees would provide better screening and be more attractive. David Wilson, Newport Lexus, reminded everyone that the site has not been vacant. He didn't feel that Newport Lexus would have the traffic impact that many have expressed concerns about. Secondly, he stated that peak hour car trips will be minimal, and explained that Lexus is a different type of car company and automobile sales occur primarily in the evenings and weekends. Lastly, Mr. Wilson stated that the intention will be to direct employees and customers out onto Dove Street. The new proposed driveway will be used primarily by salesmen for test drives. Hearing no further testimony, Mayor Bromberg closed the public hearing. Volume 57 - Page 223 City of Newport Beach City Council Minutes May 10, 2005 II FITO City Manager Bludau noted the negligible car trips that will be added by Newport Lexus and stated that the high speeds on Dove Street may be due to the fact that there is so little traffic on the street. Motion by Council Member Heffernan to certify the Final EIR and approve the General Plan Amendment, the PC Text Amendment, the Use Permit, the Modification Permit, and the Traffic Study for the Newport Lexus automobile dealership, as amended to eliminate the right hand turn out of the site onto MacArthur Boulevard. Motion died for lack of a second. Motion by Council Member Daigle to certify the Final EIR and approve the General Plan Amendment, the PC Text Amendment, the Use Permit, the Modification Permit, and the Traffic Study for the Newport Lexus automobile dealership. Council Member Rosansky referred to Condition Nos. 28 and 29, and suggested that the recommended action be approved subject to the on -site circulation and exiting plans being approved by the traffic engineer. Amended motion by Council Member Daigle to certify the Final EIR and approve the General Plan Amendment, the PC Text Amendment, the Use Permit, the Modification Permit, and the Traffic Study for the Newport Lexus automobile dealership, as amended to require that the on- site circulation and exiting plans be approved by the City's traffic engineer. Council Member Rosansky requested that the Public Works Department take a strong look at the plans. Mayor Bromberg stated that the project has gone through an incredible amount of review, but agreed that additional scrutiny might be beneficial. Mayor Pro Tem Webb referred to the response to comments and asked for an explanation of the statement that 60% of the traffic leaving the site is projected to exit onto MacArthur Boulevard. Ms. Ciandella stated that the trip distribution was later revised to project that only 20% of the traffic would exit onto MacArthur Boulevard. Council Member Heffernan asked how the final conclusion on the site plan will be any different than it is now, if it's the same people reviewing it. Secondly, he stated that there are no other driveways near the MacArthur Boulevard and Jamboree Road intersection, and it's wrong to allow one now. Mayor Bromberg expressed his confidence in staff looking at the matter with a cautionary eye, and if any problems are later discovered, he was also confident that staff would bring the issue back to the City Council. Council Member Daigle stated that everyone is sensitive to safety and it has been determined by the professionals that there is not a problem. Volume 57 - Page 224 City of Newport Beach City Council Minutes May 10, 2005 Council Member Nichols stated that he also is qualified to study such matters and he feels that it is hazardous. Secondly, he felt that EQAC was not given the opportunity to do an in depth analysis of the current plan. It never came back to them after it went to the Planning Commission. The amended motion carried by the following roll call vote: Ayes: Rosansky, Webb, Daigle, Mayor Bromberg Noes: Heffernan, Nichols Abstain: Ridgeway Absent: None Mayor Bromberg recessed the meeting at 10:05 p.m. and reconvened the meeting at 10:25 p.m. with all council members present. Motion by Mayor Brombere to suspend Reports on Committee Activities; and continue Item Nos. 13 and 15 to June 14, 2005. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Webb, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None K. PUBLIC COMMENTS Jim Hildreth provided a handout to the council members, which contained letters and statements from the City, a staff report dated December 11, 2001, as well as photos and plans. He listed the items contained in the packet and highlighted the inconsistencies and errors contained in the documents. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES — Item suspended. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 12. PLANNING COMMISSION AGENDA FOR MAY 5, 2005. Planning Director Temple reported that the first item on the Planning Commission's May 5, 2005, agenda was a review for substantial conformance of changes requested for the new Chevron service station currently under construction at the corner of Coast Highway and Bayside Drive. She stated that it was discovered that The Irvine Company had special restrictions on the property that allowed them to review the design of the project. The Irvine Company requested three changes, which included the design of the service station canopy, the design and location of the monument sign, and the location and species of the trees at the corner of the site. The Planning Commission determined that the canopy Volume 57 - Page 225 I `7 %#!) (100 -2005) City of Newport Beach City Council Minutes May 10, 2005 and sign design should be kept as was previously required, but the location of the sign and the location and species of the trees could be changed, if site distance considerations were met and urban forester approval was obtained. Planning Director Temple reported that the Planning Commission also began their deliberation of the comprehensive sign code update and sign design guidelines. The hearing was continued to their meeting of June 9, 2005. N. CURRENT BUSINESS 13. CODE AMENDMENT NO. 2005 -001 AMENDING TITLE 19 OF THE MUNICIPAL CODE RELATED TO PARKING STANDARDS FOR CONDOMINIUM CONVERSIONS (PA 2005 -015) — Continued to June 14. 2005. 14. REVIEW OF GRIFFIN STRUCTURES SITE PLAN ALTERNATIVES AND SELECTION OF SITE PLAN FOR SCHEMATIC DESIGN OF CITY HALL, FIRE STATION, AND PARKING STRUCTURE. City Manager Bludau read the action recommended by staff as presented in the staff report. He also listed the information provided in the staff report, which included a history of the City Hall buildings, a history of the project, a list of the public outreach efforts, the agreement with Griffin Structures, a memorandum from the Fire Chief and responses to questions heard in the public outreach efforts. Referring to the recommended action, Council Member Heffernan pointed out that the Building Committee did select Option 3, but did not recommend proceeding with the schematic design.. City Manager Bludau confirmed that the recommended action was worded incorrectly. Using a PowerPoint presentation, Roger Torriero, Griffin Structures, displayed and briefly reviewed the existing site conditions. He listed the various buildings that comprise City Hall and when the buildings were built, which ranged from 1945 to the mid- 1980's. The five buildings consist of 44,000 gross square feet, or 37,011 net. or useable, square feet and 189 workstations. He displayed the physical assessment of the existing buildings and noted that no building currently meets seismic design or code, the fire station could not withstand a catastrophic event and remain operational after the event, no building complies with American with Disabilities Act (ADA) requirements, and the heating, air conditioning and electrical systems are individual building based, which is costly to operate, maintain and service. Mr. Torriero stated that the Building Owners & Management Association (BOMA) standard is a private sector standard for measuring and calculating acceptable floor area allocations in office buildings. He stated that the BOMA minimum standard is an average of 282 square feet per office employee. The proposed options for a new City Hall are all at or below the BOMA standard. Volume 57 - Page 226 INDEX (100 -2005) C -3502 (38/100 -2005) City of Newport Beach City Council Minutes May 10, 2005 fiN170►V Mr. Torriero stated that the public outreach meetings included a visual assessment of the existing buildings, an analysis of what does and doesn't work in the existing buildings, a discussion on the design priorities and project options, and a sustainability presentation in regard to Leadership in Energy and Environmental Design (LEED) certification. He explained that LEED deals with energy efficiency, lower operating and maintenance costs, indoor air quality and setting a good example. At the meetings, the conceptual budgets for the three options for the City Hall buildings were also discussed. Mr. Torriero displayed a site plan showing the land exchange covered in the nonbinding memorandum of understanding, which is also included in the staff report and a part of the recommended action at the current meeting. He stated that it is a proposed square foot for square foot land swap with the adjacent property owner. Rick Damato, LPA Architects, stated that the whole idea of site planning is to get the right people next to the right people, which creates the most efficiency. Using a PowerPoint presentation, he displayed the current site plan. He then displayed Option 1, which maintains more of the existing structures than the other two options. It keeps and remodels Buildings A, B and C, and adds 40,700 square feet for a total of 70,222 square feet. He noted that the other options have less total square feet because they are more efficient, so less square feet is needed. He also noted that in all three options, the parking structure is 35 feet high, or three levels above grade, and would be hidden from Newport Boulevard. In response to Council Member Rosansky's questions, Mr. Damato stated that the site plan on display for Option 1 shows a 350 -car parking structure. The footprint would not change for a 250 -car parking structure. Mr. Damato also noted that in Option 1, the fire station is parallel to 32 ^d Street, which is not ideal for the Fire Department but is workable. He then displayed Option 2, which keeps and remodels Buildings A and B, and adds 54,000 square feet for a total of 68,222 square feet. He noted that the location of the fire station is perpendicular to 32 ^d Street, which is the optimum arrangement. He pointed out other features of Option 2, and noted that in all of the options, the existing green space on Newport Boulevard is maintained. Council Member Rosansky asked if maintaining the green space and the rose garden sacrifices efficiency in the project. Mr. Damato responded in the negative. In addition, he added that the single entry /exit to the parking structure should be sufficient and not present a problem. He noted that in all three options, it is being proposed that 32nd Street also be realigned to help alleviate any traffic concerns. Mr. Damato displayed Option 3, which keeps and remodels Building A, and adds 63,600 square feet for a total of 67,222 square feet. He pointed out carious features of Option 3, and noted that all three options also incorporate a 2600- square foot community center. Option 3 also includes the optimum arrangement for the fire station. Volume 57 - Page 227 City of Newport Beach City Council Minutes May 10, 2005 INDEX Mr. Torriero displayed the estimated conceptual costs for the entire project for each of the options. He explained that the spreadsheet on display lists the base project costs for each option, with the optional components, or adds, listed separately. He stated that the City Council has the option to add none, some or all of the optional components. He noted that all three options include an interim City Hall relocation allowance of $1.5 million, which would cover temporary relocation during construction. He explained that the site would be unsafe during construction. Additionally, Mr. Torriero noted that the base project costs include the 250 -car parking structure, with the 350 -car parking structure and the community center as optional components. In response to Mayor Bromberg's question, Mr. Torriero stated that the contingency is 10 %. Mr. Torriero pointed out that the total estimated conceptual cost for Option 1 with all of the adds is $47 million, for Option 2 its $45 million and for Option 3 it's $41 million. Mr. Torriero displayed the timeline for the project and noted that the current phase, per the agreement, is to complete the schematic design and budget, for the option selected by the City Council. He stated that it is anticipated that this will occur in September, 2005. Mr. Torriero stated that a stenographer recorded each of the town hall meetings. Additionally, questions were raised by the public through the e -mail address that was established by Council Member Heffernan at nbcAN- hall@yahoo.com. Mr. Torriero displayed a list, which summarized all of the questions received at the meetings and through the e -mail. He stated that detailed responses to the questions were prepared and were included in the supplemental packet that was distributed on May 6, 2005, and are also available on the City's website. He stated that the current report will also be made available on the City's website. Mayor Bromberg asked how the City is expecting to pay for the project. City Manager Bludau stated that if the City Council decides to move forward with one of the options, staff will look into the matter and present recommendations to the City Council. He stated that there are a number of options for how the financing might occur, including Certificates of Participation (COP's). COP's are a mechanism that is used by most cities to finance large projects. Property taxes would not be used. Mr. Torriero displayed an estimated payment schedule based upon the City's current tax exempt interest rate of 4.7% and a 30 -,Year fully amortized term. He noted that with all of the adds included, the estimated annual payment for Option 1 would be $3.4 million per year for 30 years, Option 2 would be $3.2 million and Option 3 would be $2.9 million. Mr. Torriero noted that the estimated annual payments are less than 20/a of the City's 2004 -2005 annual budget of $170 million. City Manager Bludau additionally noted that the Capital Improvement Program (CIP) is estimated to be $35 to $40 million. Mayor Bromberg asked if any services or projects would be sacrificed if the City Council decided to move forward with one of the options for a new City Hall. City Manager Bludau responded in the Volume 57 - Page 228 City of Newport Beach City Council Minutes May 10, 2005 negative. INDEX Wendy Brooks stated that she is familiar with architecture the world over, is passionate about it and considers it to be one of the greatest forms of art and culture that can be left as a legacy to mankind. She stated that the current City Hall is outdated and a disgrace for a world class city such as Newport Beach. She stated that Newport Beach deserves an edifice of notable architectural quality and a City Hall that it more efficient. Christopher Laurance asked if any of the council members included the replacement of City Hall in their election platform. He stated that the issue seems to be one of operations more than one of structures. He did agree that a new fire station is needed because it is a public safety issue. He encouraged the City Council to determine if the City is operating at maximum efficiency, if the current facilities are truly inadequate, what will be needed twenty years from now and if the current site is the best location for City Hall. Elaine Linhoff stated that she is proud that Newport Beach has a modest City Hall, and is yet to be convinced that there is a need for new structures. She stated that the public should have the chance to review the estimated costs before the City Council moves forward with a project, noting that they were presented for the first time at the current meeting. She stated that all questions should be answered before moving forward or it should be put to a public vote. Allan Beek stated that a new City Hall is not needed, and that efficiency is not reduced by providing less square feet to employees. He stated that what counts, however, is what the residents want and think. He stated that it should go to a vote of the people. Laura Dietz expressed her support for Option 3. She stated that the needs assessment of City staff has been taken into consideration and is a valid reason to move forward. Secondly, she stated that the fire station needs to be replaced for safety reasons. Lastly, Ms. Dietz stated that the information is available to the community on the City's website and elsewhere and, contrary to comments by some of the previous speakers, the public is being allowed to participate in the decision. Dr. Jan Vandersloot stated that he is not convinced that a new City Hall is needed. He stated that it is an easy facility to navigate and he likes its cozy nature. He asked if the City will be able to accomplish the other things it needs to do, such a water quality projects and new parks, if it has a $3 million annual payment. He stated that if it is decided to proceed with a new City Hall, he would support Option 3. Additionally, he recommended that it be built with LEED certification and in the most environmentally sensitive way possible. He agreed that it should go to a public vote, at least as an advisory measure. Joe O'Hora read from the State's published guidelines for the handling of financing leases and COP's by municipalities, and stated that the only guaranteed way to determine if there is the level of public support needed Volume 57 - Page 229 City of Newport Beach City Council Minutes May 10, 2005 INDEX for the project is to conduct a public vote. He stated that the current process is stretching the limits of ethical behavior. Mr. O'Hora suggested that the City do the right thing and break the project into its component parts, conduct serious studies, investigate all available alternatives, provide a thorough presentation to the public of the facts and the conclusions drawn, encourage thoughtful discussion and feedback, and present the results to the voters. Marianne Zippi stated that the need for a new City Hall is yet to be determined, but in regard to financing, she stated that the 10% contingency fee is too low and should be doubled. Secondly, she asked what the money, that would be used for the project, is being used for now, or if it is going into reserves. Ms. Zippi stated that the financing questions and what will be sacrificed should be answered before proceeding with the project. Tom Billings stated that the costs presented were estimates only, and he would expect that the actual costs would be much higher. He disagreed with the justification that a 350 -car parking structure is needed to accommodate future beach traffic. Additionally, Mr. Billings stated that the debt over 30 years will equal $84 million, and that COP's are an off balance sheet form of financing and are still a form of debt. He stated that more options should have been explored, such as use of the Newport Technology Center. He stated that the matter should be put to a public vote. Ray Halowski stated that the public did vote. They voted the council members into office. Mr. Halowski stated that the council members have been voted into office to lead and make decisions. He stated that the City Council has vision and courage, and that the City is well run from a financial standpoint. He encouraged the council members to do their job and lead the City into the next century. John Buttolph stated that the public was only given an illusion of choice, that real choices weren't presented, and the public's comments and questions weren't given serious consideration. Secondly, Mr. Buttolph stated that COP's were designed to avoid a public vote on bonded indebtedness. He read from Section 1109 of the City Charter, and stated that the intent is for the public to vote when the public will be financing public improvements over a long term. He agreed that there are defects and deficiencies in the current City Hall facility, and that some action is warranted. He urged the City Council to allow the public to vote. Bob McCaffrey stated that he's disappointed that there wasn't more public outreach, that more options weren't presented by Griffin Structures, and that other locations weren't explored. He encouraged the City Council to put the matter to a public vote to determine what the public wants. Dolores Citing stated that when she informs voters that staffs number one priority in their list of top ten priorities is a new City Hall, they are shocked. She stated that the public has never been asked what they want. She agreed that some areas, including the fire station, do need to be Volume 57 - Page 230 City of Newport Beach City Council Minutes May 10, 2005 INDEX remodeled. She reported that Mary Blake, who couldn't attend the current meeting, believes that a strategic planning committee should be appointed prior to any development. Additionally, Ms. Otting referred to Resolution 2003 -41 and stated that the principal amount of $35 million needs to be increased. She also referred to Section 1109 of the City Charter and stated that the spirit of it is being violated. Ms. Otting stated that there needs to be a capital plan. She listed numerous projects that need to be paid for. Jim Hildreth stated that people have the right to vote. He stated that the City has other debt and the money that would be used for the City Hall project could be used elsewhere, such as additional compensation for hourly employees. He stated that there are many unanswered questions, that a new City Hall is possibly unnecessary and that the general public should be allowed to vote. Lloyd Ikerd agreed with Mr. Halowski that the public voted the council members into office, and stated that he's confident that the City Council will make the right choice. Mr. Ikerd expressed his support for a new City Hall. He stated that it'll be more efficient and will save money in the long run. In addition, the parking structure can make money. In closing, he expressed his support for Option 3. John Loper, Vice President of the Fritz Duda Company, the managers for Lido Partners, expressed support for improving City Hall and replacing the fire station. Mr. Loper stated that the City currently does not have enough parking for its employees and visitors. Council Member Nichols asked if the land swap could be squared off. He stated that it might be advantageous to both parties. Mr. Loper stated that the memorandum of understanding is only a basis to start talking and there is some flexibility in the configuration. Additionally, Council Member Nichols agreed that the fire station should be perpendicular to 32 ^d Street. Council Member Heffernan noted that Option 1 includes a two entry /two exit parking structure. Options 2 and 3 have a single entry /exit parking structure. He asked if Fritz Duda Company would agree to a two entry /two exit structure with the Option 2 and 3 layouts. Mr. Loper stated that it is his understanding that the design of the parking structure in Options 2 and 3 puts the ramp five feet above ground level when it is adjacent to Via Lido Plaza, which would make the ramp too steep. Joe Repus referred to the staff report and stated that he doesn't understand how the original COP for the library could be for $7.5 million, and now the balance owing is $8.3 million. Secondly, he stated that he didn't understand the calculations for energy savings and maintenance costs. Mr. Repus stated that the City is currently doing well financially, but taking on a 30 -year debt is assuming that revenue sources will stay the same over that same period. He expressed his support for a public vote on the project. Volume 57 - Page 231 City of Newport Beach City Council Minutes May 10, 2005 INDEX City Manager Bludau explained that COP's are like taking out a mortgage on a house. Council Member Rosansky added that the principal balance will go down, but the total of the payments is higher. Susan Taylor agreed with an earlier speaker that the City Council has been voted into office to lead and make decisions. She stated that she could respond to the concerns raised at the current meeting, but feels that the minds of some of those at the current meeting will not be changed. Ms. Taylor stated that the audience is not entirely representative of what the people in the City think. She encouraged the City Council to move forward with the project. Craig Rager agreed that the council members were elected to lead and to take care of the routine business. He stated, however, that a new City Hall is not routine and that the public should have a say in the City taking on such debt. He asked the City Council to give the project more consideration. Georgine Vaught stated that Griffin Structures is not on the business license architectural services list. Additionally, she stated that the records regarding the firms that received requests for proposals, attended a site tour of City Hall and submitted qualifications are lost. Ms. Vaught stated that she'd also like an explanation as to how a non - architect could be given the professional services contract, and asked when the conflict with Griffin Holdings was discovered, who discovered it, how it was discovered and exactly what the conflict was. She listed other discrepancies she has found. Mayor Bromberg stated that several speakers have presupposed that because they oppose a new City Hall, the majority oppose it. He stated that he has found that many of those who spoke in opposition to a new City Hall at the current meeting, speak in opposition to just about everything that government does. Mayor Bromberg stated that the current council members were voted into office and the majority of the residents trust their judgment. He stated that the City did more outreach than most other cities would do on such a project, and listed what was done. Mayor Bromberg stated that the need for a new City Hall is there. He expressed his support for the City's staff and stated that it's time to provide an efficient and productive working environment. Council Member Ridgeway stated that there seems to be agreement that a new structure and working environment is needed. The focus of the comments at the current meeting were on having a vote of the people. He listed many of the decisions that are made by the City Council that are not taken to a vote. Council Member Ridgeway stated that the public deserves a new City Hall, and he feels that it's important to keep it where it is because it's in the oldest part of the City. He expressed his disappointment in those that go to the negative side, and don't focus on the needs of future generations. He stated that a vote will only bring out more half- truths and negativity, and is not fair to those who don't become Volume 57 - Page 232 City of Newport Beach City Council Minutes May 10, 2005 INDEX fully informed on issue- specitm matters. Motion by Council Member Rid¢eway to 1) approve the recommendation of the Building Committee to select Replacement Option 3 and proceed with the schematic design, including replacement of Council Chambers, as detailed in the April 23, 2005 presentation; 2) direct staff to include the 2,600 square -foot community room as part of the project; 3) direct staff to include a 350 -car parking structure; 4) approve recommendation to proceed with a LEED certified building; 5) approve the Memorandum of Understanding with Lido Partners, Inc. for conditional approval of a lot -line adjustment; and 6) direct staff to work with a financial team to develop potential financing for the project. Council Member Ridgeway stated that it's time to move forward and that everyone will end up being proud of the new structure. Lastly, he stated that the City is well run. An extensive report on how much the City outsources will be provided at the Study Session on May 24, 2005. Mayor Bromberg announced that the conflict issue brought up by Ms. Vaught was discussed at an open meeting. When it was determined that Mr. Torriero had been working as the project manager for the people at Lido Marina Village and that there might possibly be a land swap with the City Hall project, the Building Committee comprised of himself, Council Members Heffernan and Ridgeway, and City staff suspended the operation at that point in time. Mr. Torriero has since divested himself of everything with Lido Marina Village. Mayor Bromberg stated that nothing devious has been done and noted that Mr. Torriero is also working on the Mariners Library. Mavor Pro Tern Webb stated that at the beginning of the process, he wanted to save as many of the existing structures as possible. He stated that he is now convinced that Option 3 is the best way to improve the efficiency at City Hall. Council Member Heffernan stated that he has heard from the residents that they want a cost effective, functional, efficient and accessible City Hall. He stated that the current location is not accessible or efficient, and that different sites were never looked at. He stated that the project calculates to $760 per square foot, which is neither cost effective or efficient for a functional facility. Council Member Heffernan stated that Griffin Structures is in the business of building and should not have been the firm to perform the assessment. In closing, he stated that the residents have told him that City Hall is not in the right place, and that the project is too costly and not needed. Less costly options should be considered. Mayor Bromberg stated that the Building Committee did look at relocating City Hall and that specifically, Newport Technology Center and Fashion Island were looked at. The numbers weren't ever calculated, however, because it was decided by the committee and the City Council that the current location is where Newport Beach started and where City Hall should be. Volume 57 - Page 233 City of Newport Beach City Council Minutes May 10, 2005 Council Member Nichols questioned the configuration of the fire station, and asked how the COP's work and how they differ from a bond issue. He stated that a more open structure design for City Hall should be considered to allow for flexibility in the future. He also didn't feel that preserving the green space in front of City Hall needed to be a priority, and that it might be needed for parking in the future. In closing, Council Member Nichols stated that the project needs to be thought out more thoroughly. Council Member Daigle encouraged those present to continue their vigilance. She stated that most people recognize that the fire station needs to be replaced, and that City Hall needs to be made more efficient and functional. She stated that care should be taken as the process proceeds and that implementation should occur with fiscal responsibility. The motion carried by the following roll call vote: Ayes: Rosansky, Webb, Ridgeway, Daigle, Mayor Bromberg Noes: Heffernan, Nichols Abstain: None Absent: None 15. MARINA PARK MOBILEHOME PARK — CHANGE OF USE ISSUES — Continued to June 14, 2005. O. ITEMS REMOVED FROM THE CONSENT CALENDAR PROFESSIONAL SERVICES AGREEMENT FOR MERKEL & ASSOCIATES. In response to Council Member Nichols' question, Assistant City Manager Wood stated that the request is to reconfigure the existing marina. The proposal does not involve the parking lot or any land. Council Member Nichols stated that the staff report should include additional information on what the project will entail. Assistant City Manager Wood stated that the contract is for the consultant to prepare the environmental document, which would include the complete project description. Mayor Bromberg added that the agreement is included with the staff report, is extensive and includes the scope of work. Assistant City Manager Wood stated that more detail on the development proposal can be added to similar reports in the future. Motion by Mayor Pro Tern Webb to approve a Professional Services Agreement with Merkel & Associates of San Diego, California, for professional environmental services to prepare a Mitigated Negative Declaration and associated documents at a not to exceed cost of $33,033 and authorize the City Manager to sign the agreement. The motion carried by the following roll call vote: Volume 57 - Page 234 INDEX (73/100 -2005) C -3771 (38/100 -2005) City of Newport Beach City Council Minutes May 10, 2005 Ayes: rietlernan, hosansky, Webb, xadgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None P. MOTION FOR RECONSIDERATION - None Q. ADJOURNMENT at 1:05 a.m. on May 11, 2005 The agenda for the Regular Meeting was posted on May 4, 2005, at 2:40 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 57 - Page 235 INDEX City of Newport Beach City Council Minutes May 10, 2005 INDEX THIS PAGE LEFT BLANK INTENTIONALLY Volume 57 - Page 236