HomeMy WebLinkAbout01 - Minutes - 05-24-2005City Council Meeting
June 14, 2005
Agenda Item No. 1
CITY OF NEWPORT BEACH
City Council Minutes
Study Session R
May 24, 2005 - 3:30 p.m DRAFT `AFT INDEX
ROLL CALL
Present: Heffernan (arrived at 4:33 p.m.), Rosansky, Ridgeway, Daigle, Nichols,
Mayor Bromberg
Absent: Webb (excused)
CURRENT BUSINESS
1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR.
Council Member Nichols stated that he would be pulling Item No. 3, Newport
Lexus Automobile Dealership, and Item No. 9, Sunset Ridge Park, at the
evening meeting, and that he has objections to the 75 -foot tower and the 50 -foot
parking structure for the automobile dealership.
2. NEWPORT BEACH AND CONTRACTING OUT.
Using a PowerPoint presentation, Assistant City Manager Kiff displayed the
definitions of "privatize ", "outsource" and "contract out ". He explained that some
cities, such as Newport Beach, are "full service" cities. Others are "contract"
cities, which means that they rely on other agencies or private sector companies
to provide essential services. Still other cities are somewhere in between the
two, and even full service cities can vary in the services they provide. Most
contract cities don't have a choice on whether some of their services are
contracted out.
Assistant City Manager Kiff displayed a chart showing a comparison of full
service, contract and "in- between" cities in Orange County. He pointed out that
in nearly all cases, the services that are contracted out are still performed by a
government agency. He then displayed a list of the services provided by the City
of Newport Beach that other cities may not provide and the size of the staffing
for each of the services. He noted that of the 548 employees that provide these
services, only 38 are located at City Hall, which speaks against contracting out
to avoid building a new City Hall.
Assistant City Manager Kiff stated that the Orange County League of Cities
puts out an annual City Directory, which some in the community have referred
to when making comparisons. It lists Newport Beach as having no major
services contracted out. He explained that the 2006 directory will be corrected
to list the sixteen services that Newport Beach does actually contract out for.
He displayed the list and noted that it is more than any other city. He
additionally pointed out that using the League's directory to draw general
conclusions about contracting out isn't very useful, because the extent of the
services isn't quantified.
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At the request of Council Member Ridgeway, Assistant City Manager Kiff read
the list of the sixteen major services that the City contracts out for. The first on
the list was trash pick -up and he explained that approximately 18% of the
community receives residential trash collection from the private sector and all of
the multi - family and commercial trash pick -up is contracted out. He continued
with the list, which included specialized legal services, tree trimming, overflow
building plan check, median and parkway landscape maintenance, park
maintenance, building maintenance and custodial services, storm drain
cleaning, investment management, municipal billing services, property
management, oil field management, school crossing guards, animal shelter, alley
sweeping and engineering services.
In response to Council Member Rosansky's question, Assistant City Manager
Kiff confirmed that grease trap inspections are outsourced, but that he doesn't
consider them to be a major service so they weren't included on the list. They
are included on a list of services by department. He then displayed this list of
the services that the City contracts out for by department. It totaled 119
services.
Assistant City Manager Kiff displayed a list of what is paid by the typical
Newport Beach resident for City operations. He then displayed a list of what
Newport Beach residents do not pay for that is paid for by residents in other
cities, and pointed out that Newport Beach residents do not pay for some of the
top rated services they receive. He further noted that Newport Beach residents
get their services for a local tax burden that is in the midrange of the other
Orange County cities.
In response to Council Member Daigle's question, Assistant City Manager Kiff
stated that the local tax burden is the total of those taxes that are administered
locally. It does not include property taxes, which cities have no control over.
In conclusion, he stated that the information presented at the current meeting
will be available on the City's website.
Council Member Daigle asked if the trend towards privatization is increasing
the costs or decreasing the costs of government. City Manager Bludau stated
that in some cases, the services cost more to contract out. Additionally, recent
State legislation makes contracting out for certain services more expensive
because prevailing wages must be paid. He stated that other services might cost
less to contract out. Council Member Daigle asked if an increase in privatization
results in a decrease in government administration. City Manager Bludau
stated that in most cases, employees have not been lost when a service has been
contracted out.
In response to Council Member Nichols' question, City Manager Bludau stated
that prevailing wages are established on a regional level and the State
establishes those services that must be paid for at prevailing wages. Council
Member Nichols asked if the prevailing wages are the union wages prevailing in
the area. Public Works Director Badum stated that the State establishes the
wages, and he would guess that the unions have an influence.
Council Member Ridgeway stated that in the construction industry, it probably
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is the union wage. He further noted that the State law was established to
comply with Federal government mandates on prevailing wages.
Council Member Rosansky asked what the theory is behind paying the
prevailing wage. Mayor Bromberg stated that the intent of the State legislation,
as written, would have to be looked at. City Attorney Clauson added that it may
be a way to equalize pay to public sector employees and union negotiated wages.
Philip Arst provided a handout and stated that the private sector is more
efficient than the government sector, yet Newport Beach does all of its services
itself. Additionally, he referred to the Study Session of November 13, 2001, and
stated that there is no way to numerically compare the information presented at
that meeting with the information presented at the current meeting. He stated
that there is also no proof that the City is providing better or more efficient
sen,ices than private enterprise. Mr. Arst stated that his handout includes a
contracting out report prepared by the City of Huntington Beach and requested
that Newport Beach prepare a similar report. He stated that a City services
analysis is needed before a new $100 million City Hall is considered.
Assistant City Manager Kiff stated that he isn't aware of the City claiming that
it is operating at maximum efficiency, and noted that extra care is given in the
services provided, which may not be the most efficient way to provide the
services. Additionally, he stated that the new City Hall being considered is
projected to cost approximately $41.5 million. City Manager Bludau challenged
Mr. Arst to prove that the private sector is more efficient than the public sector
in every service that is provided. He agreed with Assistant City Manager Kiff
and stated that when discussing efficiency, it needs to be clarified if just cost is
being considered or if quality of service is also being considered.
Council Member Ridgeway stated that all government entities are unique in the
sennces that they provide and there isn't a clear way to make comparisons. He
stated that efficiency is an overused word, and that the City's Management
Information Systems (MIS) function, for example, can not be duplicated because
of the integrated nature of the components in every department. He stated that
the City is at the forefront in applying new technologies. Council Member
Ridgeway cautioned Mr. Arst that his comments could be construed as
supporting an increase in taxes in the City, since privatizing could cost more.
Council Member Nichols noted that the City made the effort to have the
Bayview senior housing project built without paying prevailing wages, and
asked why this couldn't be done with City services. City Attorney Clausen
stated that there are long established cases that say that Charter cities do not
have to pay prevailing wages for projects, which are a local municipal affair.
The State later changed legislation impacting the ability of Charter cities to
determine if a project is a local municipal affair, causing many projects to be
considered regional. New laws also came into effect pertaining to projects paid
for by cities, determining that they are public projects even though the private
sector might be doing the work. A case out of Long Beach resulted in the
Appellate Court determining that Charter cities should no longer be exempt
from prevailing wages. The Senate adopted a resolution making a similar
determination. The Supreme Court overturned the Long Beach decision. As a
cautionary move, the City of Newport Beach paid prevailing wages for recent
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steam cleaning of the streets. The State's Director of Industrial Relations
rescinded his prior decisions and determined that steam cleaning is subject to
prevailing wages. Not knowing how the State might interpret future issues,
City Attorney Clauson suggested that the City Council consider adopting an
ordinance to require that when a project is determined as a local municipal
affair and is under $30,000, prevailing wages will not be paid. In conclusion, she
stated that it's a very complicated issue. Assistant City Manager Wood further
clarified that with the Bayview senior housing project, the City wasn't fighting
the determination that prevailing wages should be paid, it was attempting to
meet the deadline for the expiration of an exemption to affordable housing
projects.
Council Member Ridgeway added that when redevelopment agencies provide
assistance, it is considered a public project and subject to prevailing wages.
Referring to Mr. Arst's comments, Mayor Bromberg stated that he didn't know
how to prove that the City provides better service, but that he hasn't heard
complaints and feels that the City does a good job. He recalled a previous
conversation when he asked Mr. Arst why he opposed the City providing the
best service possible even if it may cost more. Mr. Arst's response was that
privatization will provide adequate service. Mayor Bromberg stated that the
people of Newport Beach won't, and shouldn't, accept adequate services.
Council Member Nichols stated that it costs $138,000 annually to steam clean
the new pavement in Balboa Village. He expressed his disagreement with
installing pavement that requires such costly maintenance.
Council Member Daigle stated that the City is well run and stable, and that it's
important to residents to have consistency in the services provided. She stated
that privatization doesn't necessarily save money, and asked if there's a
correlation between an expansion of privatization and an expansion of
government. She suggested that when privatization of a service is done, the cost
of administration for that service also be examined.
City Attorney Clauson added that local government is partly expanding as the
result of State legislation requiring more and more mandated duties.
Council Member Ridgeway stated that the City is a large organization, and does
a good job of utilizing outsourcing and automation.
3. POSITION COST ANALYSIS.
(100 -2005)
Using a PowerPoint presentation, City Manager Bludau stated that there are
eight new full-time positions being recommended in the 3005 -2006 budget, with
some full-time positions and some part -time positions being deleted. He listed
the positions by department. These included the deletion of a part -time
department assistant and a part -time dock assistant in the City Manager's
department, and the increase in the use of contract attorneys in the City
Attorney's office. In the Administrative Services Department, a full -time fiscal
clerk position, a full-time budget analyst position and a part -time student aide
position are being added. In the Police Department, a full-time MIS specialist
position is being added and the part -time MIS technician position is being
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deleted. In the Planning Department, a full-time office assistant is being added
and the part -time office assistant position is being deleted. In General Services,
a part -time student laborer position is being deleted. In the Library Services
Department, three full-time library assistants are being added and the hours for
the part -time marketing specialist are being increased. Additionally, a full-time
librarian position, a part -time librarian position and a part -time library page
position are being deleted.
City Manager Bludau stated that in the Recreation & Senior Services
Department, a part -time recreation maintenance worker position is being
deleted and a full-time groundsworker position is being added. Additionally, the
hours of several part -time positions are being increased. These include pool
lifeguard, swim instructor, marketing specialist, office assistant, recreation clerk
and recreation leader. City Manager Bludau noted that the increase in hours
will be offset by increased revenues. Lastly, in the Public Works Department, a
full-time public works construction inspector is being added. This position is
being funded through the assessment districts.
City Manager Bludau displayed a summary of the proposed position changes
and noted that the total cost of the positions and hours that would be added is
$451,800. This would be offset by the deleted positions and hours, which total
$84,000, making the net total increase $367,000. This net total figure does not
include the increased revenues or the assessment district funding.
4. BUDGET REVIEW PRESENTATIONS.
City Manager Bludau stated that PowerPoint presentations would be utilized by
each of the departments.
City Council
Assistant City Manager Tiff displayed the City Council budget for the 2005 -06
fiscal year and noted that it is slightly lower than the 2004 -05 budget. He
further noted that a large majority of the expenses are for consultant services,
and City Manager Bludau added that the 2005 -06 budget should be the last to
include such large expenditures for consultant services for sphere and airport
issues.
City Clerk
City Clerk Harkless stated that the City Clerk's budget is status quo with no
significant changes.
City Manager
Assistant City Manager Kiff announced that the Resource Allocation Plan (RAP)
also includes service indicators for each of the departments. Regarding the City
Manager's budget, he stated that it totals approximately $3.4 million for the
2005 -06 budget. The increase from the 2004 -05 budget is primarily due to an
increase in water quality regulations.
In response to Council Member Nichols' question, Assistant City Manager Kiff
explained that there's a problem with too much selenium in the San Diego
Creek. All of the partners involved in the watershed are being required to fund
a study to try to reduce the selenium.
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Assistant City Manager Kiff listed the divisions in the City Manager's office and
stated that the Harbor Resources Division is being reorganized to allow for more
time to be spent on policy.
Human Resources
Human Resources Director Axley stated that the department's budget is status
quo, and includes the personnel and risk management divisions. It is expected
that there will be 70 recruitments in the 2005 -06 fiscal year, which is one of the
department's most important functions and takes up a large portion of the
department's time.
At the request of Council Member Ridgeway, Human Resources Director Axley
stated that other significant duties performed by the department include
unemployment, classification and compensation studies, benefits, trainings,
retiree benefits, new employee orientations, and liability and workers
compensation claims.
City Attorney
City Attorney Clauson stated that there is a reduction in the City Attorney's
budget due to an anticipated reduction in the amount of outside special counsel
that will be needed. City Manager Bludau noted the 5.500 in -house requests for
opinions and advice that the City Attorney's office receives annually and pointed
out that the department is a support function for the other departments. He
stated that Administrative Services, Human Resources and the City Manager's
office also serve as support functions for the other departments on a daily basis,
which supports the need to keep the departments together at City Hall.
Council Member Rosansky asked what types of cases make up the litigation
caseload and why it is estimated to decrease from 150 to 50 annually. City
Attorney Clauson stated that the caseload is usually a mix of tort claims and
litigation resulting from City Council, Planning Commission or personnel
decisions. She stated that she'd like to think that the decrease is the result of
the City Attorney's office getting on top of issues prior to litigation.
Administrative Services Department
Administrative Services Director Danner stated that the Administrative
Services budget is increasing from approximately $6 million to $6.5 million due
to two new positions and the Public Employees Retirement System (PERS)
increase. He stated that this will be true of all the departments as the PERS
rates continue to increase. He stated that Administrative Services has five
divisions and 52 employees proposed for the 2005 -06 fiscal year. He displayed
and listed the main functions of each of the divisions, which included resource
management, fiscal services, management information systems, revenue and
accounting. A new full-time fiscal clerk is being proposed in the Revenue
Division and a new full-time budget analyst is being proposed in the Accounting
Division.
Administrative Services Director Danner stated that Administrative Services
also handles all of the debt service. He displayed the list of debt service
estimates for the 2005 -06 fiscal year. He then displayed the list of significant
revenue handled by the department, as well as the four major taxes
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administered by the department. These included property tax, sales tax,
transient occupancy tax and business license tax, which together represent
almost 52.3% of the City's total estimated revenue of approximately $162
million. Lastly, Administrative Services Director Danner displayed the list of
major charges and fines handled by the department.
Council Member Heffernan asked what else is contributing to the increase in the
department's budget in addition to the two new positions. Administrative
Services Director Danner stated that it can also be attributed to the large
increase in the pension costs for the existing staff. He stated that the PERS rate
is increasing fractionally for the safety personnel, but it is doubling from 5% to
10% for miscellaneous employees. Council Member Heffernan confirmed that
the existing employees are costing more even without a salary increase.
Police Department
Police Chief McDonell stated that the Police Department budget is increasing by
2.3% to approximately $35.8 million. Over 85% of the budget is for personnel
related costs, with the PERS rate increase representing the substantial increase
to the entire budget. The maintenance and operations budget is increasing by
approximately $67,000, which is partly due to an increase in vehicle fuel costs.
Police Chief McDonell reported that only $16,000 is being proposed for capital
outlay, which is a significant decrease from the 2004 -05 fiscal year. He
explained that the 2004 -05 budget included the purchase of three costly items.
Police Chief McDonell displayed the breakdown of the budget by division and
noted that 70% of the department's budget is applied directly to frontline
operations. The proposed budget includes the upgrade of one part -time MIS
technical position in support services to full-time. He explained that the
department is reliant on technology to do its job. Police Chief McDonell
displayed the breakdown of responsibilities by division. The divisions of the
department include the Police Chiefs office, support services, patrol, traffic,
detective and fleet maintenance.
Police Chief McDonell stated that the department's total estimated annual
revenue is approximately $5 million. He listed the significant revenue sources.
Additionally, he listed the significant grants that the department receives, and
noted that Newport Beach has taken a leadership role and is managing the
grant funds on behalf of all of the County criminal justice agencies.
Council Member Heffernan asked how Newport Beach compares in age of
personnel to other police departments, and if retirement changes have had an
effect on turnover in the department. Police Chief McDonell agreed that there
has been an acceleration of retirements in the State, but noted that a younger
police force can be beneficial in frontline operations. Police Chief McDonell
noted that Newport Beach is viewed as a premier city to work in and turnover is
less than it might be in other cities. Council Member Heffernan expressed his
concern that experienced personnel are leaving the force.
Council Member Ridgeway asked if the overview presentations by each of the
departments was replacing a line by line look at the proposed budget. City
Manager Bludau stated that this process has been followed for several years, but
can be changed. At the study session on June 14, 2005, a presentation on the
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Capital Improvement Program (CIP) would be given, and on June 28, 2005, any
remaining questions would be answered.
Fire Department
Fire Chief Riley displayed the department's mission and stated that detailed
information on how the department's responsibilities are carried out is covered
in the RAP. He displayed a summary of the department's proposed budget, and
noted that it's a 2.23% increase over the 2004 -05 fiscal year budget. The
proposed budget totals $26,334,497, with approximately 85% of it in salaries.
He displayed a breakdown of the budget by division. The divisions include
administration, fire operations, prevention, emergency medical services,
training and lifeguard operations. Fire Chief Riley noted that the emergency
medical services division budget only includes those costs for advanced life
support and emergency transportation. The fire operations budget includes the
first response to emergency medical calls.
Fire Chief Riley listed the revenue categories for the department. Significant
program issues for the 2005 -06 fiscal year include the design and construction of
the fire station and training center in Santa Ana Heights, completing a
comprehensive survey of all public safety facilities, and completing the wildland
fire prevention and response plan.
Council Member Daigle asked what the status is of the facility survey. Fire
Chief Riley stated that it's currently listed as a project for the Public Works
Department. The buildings that will be surveyed have been identified, but the
survey itself has not begun.
Fire Chief Riley continued listing the significant program issues, which included
an upgrade to the payroll software program to enable the department to do a
complete and comprehensive management of the staffing system. Other
significant issues included continued emphasis on emergency preparation and
professional competency. He noted that 62% of the department's personnel have
less than four years experience in their current positions.
Council Member Heffernan asked why the department is experiencing such a
huge turnover and why the labor costs aren't less if the personnel is newer and
at the lower end of the pay ranges. Fire Chief Riley stated that the costs are less
and noted the PERS increase experienced by all of the departments.
Additionally, he stated that the turnover is the result of the large growth of
public service agencies in the 1970's and the enhancement to retirement
benefits. In response to Council Member Heffernan's additional question, Fire
Chief Riley stated that the recruits have the ability to aspire to the higher levels,
but that it's a question of motivation and the desire to deal with the different
challenges. Council Member Heffernan noted that the enhanced retirement
doesn t encourage personnel to work longer.
Planning Department
Assistant City Manager Wood displayed a comparison of the 2004 -05 and
2005 -06 budgets. She noted that the increase in salary and benefits is due to the
PERS rate increase and the upgrade of a part -time office assistant to full -time.
The significant decrease in maintenance and operations is due to the cost of the
general plan update in the 2004 -05 budget. She listed the major functions of,
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the administration and economic development divisions, and noted the increase
in citizen committees and the increased workload associated with them.
Council Member Daigle asked if the Planning Department is adequately staffed.
Assistant City Manager Wood stated that an additional person could be used to
perform plan checks, but that the intent is to continue to utilize outside
consultants until the zoning code is revised in such a manner as to decrease the
time needed to perform the work. Additionally, contract planners are being used
for development review of the larger projects.
Council Member Ridgeway confirmed that the plan check position would be
revenue neutral because the costs are charged to the applicant. He agreed with
Council Member Daigle that the City Council should be made aware of
additional staffing needs in the Planning Department.
Assistant City Manager Wood listed the department's workload indicators and
the large projects currently underway. Revenue in the 2005 -06 fiscal year is
expected to meet or exceed the current year's revenue. She listed significant
special projects being worked on by the department,
Building Department
Building Director Elbettar displayed the department mission. He stated that
the current year's budget is approximately $3 million and the proposed budget
for the 2005 -06 fiscal year is $3.3 million. The increase is partly due to the new
record specialist position approved in February of 2005, and the reclassification
of a building inspector to a plan check engineer. He displayed a revenue
worksheet showing actual and projected revenues by account type from fiscal
years 2002 -03 to 2005 -06, and noted that his department is revenue neutral.
Building Director Elbettar displayed a construction activity report showing year
to date figures as of March 2005, and noted that the 2004 -05 fiscal year will
represent the highest year in Newport Beach history in terms of valuation.
Council Member Ridgeway stated that in his observations, he hasn't seen a
neighborhood in the city that doesn't have some type of significant construction
going on. City Manager Bludau added that it's primarily residential
construction that is taking place which means increased staff involvement
because the volume is so great. Building Director Elbettar additionally noted
that the residential construction has become more complex as residents are
striving to maximize their property values.
Building Director Elbettar listed the future programs and service enhancements
planned for the department.
In response to Council Member Heffernan's question, Building Director Elbettar
stated that he expects the combination permit program to be implemented by
the end of the year. The program would combine four applications into one, but
would not eliminate the need to review separate plans for building, electrical,
plumbing and mechanical.
Building Director Elbettar stated that other goals of the department are to
increase counter plan review and permit issuance services, implement a record
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management plan and streamline the plan check process.
Council Member Rosansky asked how long the integration of the County records
for Newport Coast would take. Building Director Elbettar stated that the City
doesn't have control over when the County sends the records and that they will
continue sending records until the entitlement for the area is built out. He
guessed that it would take less than five years.
Library Services
Library Services Director Katsouleas began by showing a photo of the Central
Library and acknowledging Urban Forester Conway and The Irvine Company
for working together on replacing the palms. She displayed the seven divisions
in the department and stated that the proposed budget totals approximately
$5.4 million. The divisions include the Central Library, the three branch
libraries, administration, literacy services, and arts and cultural services. She
displayed the funding by division, and noted that over one million items are
circulated each year.
Library Services Director Katsouleas displayed the staffing of the department by
division, and noted that 1.5 librarian positions will be replaced with 2 library
assistant positions at the Central Library and staffing will be added for the
Mariners Branch Library.
Council Member Rosansky asked how the Balboa and Corona del Mar branch
libraries are utilized by the public. Library Services Director Katsouleas stated
that the Balboa Branch Library serves as a community center for the area and is
very popular.
Council Member Ridgeway added that the Balboa library probably has the
largest maritime and seamanship collection on the West Coast.
Library Services Director Katsouleas stated that the Corona del Mar library is
less than a mile from the Central Library and is not used heavily, but is a
sentimental favorite of the local community.
Council Member Nichols asked if the concept of combining the Mariners library
with the elementary school is new. Library Services Director Katsouleas stated
that there are several joint use libraries throughout the country. She felt that
the Mariners library would be a success. Council Member Nichols asked if the
program would be expanded with the school district to other locations. Library
Services Director Katsouleas stated that it is unique to the Mariners community
and that she didn't see it being done in other areas in the City. City Manager
Bludau noted that there was already a library and an elementary school in close
proximity at the location.
Library Services Director Katsouleas displayed the revenue projections for the
department, and noted that the fees for service category is going down because
the library is sending out e-mail prenotification when library items are due,
which has resulted in more books being returned on time. Intergovernmental
reimbursements are increasing as the result of the City having a better idea of
the reimbursements that will be received from the State. She noted that the
miscellaneous revenues category is listed as zero because many of the library
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supporters and donors don't want their gifts to be considered as an integral part
of the library budget.
Library Services Director Katsouleas listed the major expenditure areas, and
noted that capital outlay and equipment is increasing because the library is
assuming responsibility for its computers. She displayed the budget breakdown
by expenditure area and noted that approximately 75% of the budget goes
towards staffing. She listed the arts and cultural services division budget
breakdown separately, and displayed what the department accomplished in the
2004 -05 fiscal year, and what it hopes to accomplish in the 2005 -06 fiscal year.
At the request of Council Member Daigle, Library Services Director Katsouleas
confirmed that Newport Beach was recently recognized as having the best
library in the state and the fourth best in the nation, for a city of its size.
Council Member Rosansky asked if library services for Newport Coast had been
budgeted. Library Services Director Katsouleas stated that the costs are
expected to be incorporated in the proposed budget if the services come to
fruition, and the costs are expected to be minimal.
Council Member Heffernan asked what was being done to deal with the parking
problems at the Central Library. Library Services Director Katsouleas stated
that a Board of Library Trustees member is serving on the fundraising
committee for the proposed park and a study is being conducted on how much
the library's parking lot is being used by visitors to the nearby shopping center.
City Manager Bludau stated that any capital improvement projects would occur
after the 2005 -06 fiscal year.
PUBLIC COMMENTS - None
ADJOURNMENT - at 6:13 p.m.
The agenda for the Study Session was posted on May 18, 2005, at 3:00 p.m on
the City Hall Bulletin Board located outside of the City of Newport Beach
Administration Building.
City Clerk
Recording Secretary
Mayor
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CITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
May 24, 2005 - 7:00 p.m
STUDY SESSION- 3:30 p.m
CLOSED SESSION -None.
+nr *+nr * * * * * * * * *tatts
A. RECESSED AND RECONVENED AT 7:00 P.M. FOR RE =1"
k �
B. ROLL CALL
Present: Heffernan, Rosansky, Ridgeway, Daigle, Nichols, Mayor Bromberg
Absent: Webb (excused) 4,
C. CLOSED SESSION REPORT - None.
D. PLEDGE OF ALLEGIANCE - Council Member Daigle:'', .
E. INVOCATION - None.
F. PRESENTATIONS �' r
Athletic Complex at Estancia High School - Gordon Bowley, Costa Mesa
United, reported that &ey`are dedicated fo- raising the $9.4 million needed to
construct an aquaticcenter at Costa Mesa High School and a multi -use stadium at
:.
Estancia High 5choolthat would, benefit,xhe; entire school district. Costa Mesa
Council Member Fo �Mannoiinced' "that`Uosta Mesa has pledged $1 million
towards the building of;t�facilitie's and, 5100,000 through Ikea Funds from a
development agreement. Mayer Bromberg indicated that this issue is borderless.
'- '.- _•`,.2er'
Introauction CA. dents Traveling to Okazaki - Dan Hoffman, Newport
.,
Beach Sister City Asadciation And Newport- Balboa Rotary member, introduced
the chaperone, Timree Gold, 'and the student delegation (Kelly Clark, Leilani
a
Tanbar3,1)anie1 Ward, and Edward Wiklund) who will be traveling to Okazaki.
Butterfly t.iaitiative Proclamation - Mayor Bromberg presented a
proclamation %o aimee Niles who created the Butterfly Initiative which promotes
innovative ways3o develop capacity, capability, and creativity.
Ili;,
State Champion Girls Soccer Team Proclamation - Mayor Bromberg read
the proclamation and presented one to each of the AYSO 57 Gator Girls and their
coach, Frank Mueller.
Proclamations for Outstanding Community Financial Contribution -
Police Chief McDonell reported that Ky Nam donated $50,000 towards the Police
Department Lobby Remodel and Police Museum, and Al Cordero contributed all
the architectural funding for the project. Mayor Bromberg read the proclamation
and presented them to Mr. Nam and Mr. Cordero.
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,k
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May 24, 2005
Youth Council Presentation - Max Ukropina, Corona del Mar High School
student, introduced the other Youth Council members in attendance: Ahha
Kattan, Hanna Dean, Sheina Levine, and Brittany Levine. He utilized a
PowerPoint presentation to highlight what Youth Council does.
Chuck Jones Day Proclamation - Mayor Bromberg presented Chuck Jones'
grandson, Craig Kausen, with a proclamation proclaiming June 4, 2005 as "Chuck
Jones Day ". Mr. Kausen announced that there will be a celebration at Fashion
Island on June 4.
Library Foundation Check Presentation - Newport Beach Publ c :111hrary
Foundation President Edwards presented Library Board of Trustees Chairman
Hamilton with a $167,000 check. Trustee Hamilton explained,4Aiifthe money
will be used for and reported that the Foundation and the Friends of the Library
have given over $500,000 this year.
G. NOTICE TO THE PUBLIC
H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL
MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR
DISCUSSION, ACTION OR REPORT (NON - DISCUSSION ITEM):
• Mayor Bromberg announced that Governor Schwarzenegger has
appointed him to the Orange County Superior Court bench and reported
that State law does not allow himao'eerve on the Newport Beach City
Council at the same time. He read his letterofaesiggation and stated that
his resignation will be effective June 17.2005.
• Mayor Bromberg announced that the 12th Annual Balboa Island Parade
will be held on June 5 a I1 a.m He stated that this year's theme is
"Salute to the Troops ".
• Mayor Bromberg announced that the 1/1 Marines will be returning home
from Iraq on June 5 He noted that they are the oldest and most
rated
deooMarine uniEin United States history.
• Mayor Bromberg reported that he spoke to an assembly of 650 young
adults at Ensign Middle School during their Character Awards and then
attended Newport Harbor High School's "Every 15 Minutes" program with
Council Members Ridgeway and Rosansky.
• Counal Member Rosansky requested a status report at the next meeting
regarding the underground utility projects.
I. CONSENT CALENDAR
Council Member Daigle announced that the 2004 -2005 Traffic Signal Upgrades
project (Item 8) will modernize the traffic control signals. She reported that this
project will renovate signals on San Joaquin Hills Road and.San Miguel Road and
at San Joaquin Hills Road and Marguerite. She stated that emergency
preemptive systems will be installed at Newport Boulevard and Balboa Boulevard
and at San Joaquin Hills Road and Newport Coast Drive. She reported that,
through the Capital Improvement Program and using a grant from the Orange
County Transportation Authority (OCTA), the City will look at upgrading the
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1
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May 24, 2005
signal controllers and adding a traffic operation center.
READING OFMINUTESiORDINANCES AND RESOLUTIONS
1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR
MEETING OF MAY 10, 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 INTRODUCTION i }}
3. Removed at the request of Council Member Nichm
ORDINANCE FOR ADOPTION
INDEX
4.
ORDINANCE TO APPROVE AN 'k ENDMENT TO PERS
C -563
CONTRACT TO PROVIDE PRE- REnREMENN OPTIONAL
(38/100 -2005)
SETTLEMENT DEATH BENEFIT TO FSATY MPLOYEES.
Continue to June 14, 2005.•.
♦;
IC
RESOLUTIONS FOR ADOPTION
5.
RESOLUTION RELATING TO COD$''kNiF'OR�RMENT IN WEST
C -3773
SANTA ANA HEIGHTS. 1) Adopt Reeolufiog3i7n. 2005 -28 authorizing
(38/100 -2005)
the City's Code and .Water Quality Eni'orcemeni`staff to serve the West
Santa Ana Heights community fora series of 1 -year renewable terms or
until such timid as the City annexes *'est,Santa Ana Heights, whichever
comes first.�iiid 2) authorize the City Minager to execute a final contract
in subs Halt`
tali y_§imilar fotm'f�the5draft Agreement attached to the staff
report as Attactiiiaent$
6.
RESOLIl.T]ON AUMORIZING THE TEMPORARY CLOSURE OF
(100 -2005)
SEASHOF2Ey DRIVE;; NEWPORT BOULEVARD AND BALBOA
BOULEVAED._AND SELECTED FEEDER STREETS FOR THE
JULY 4TH HOLIDAY.-�kdopt Resolution No. 2005 -29.
CONTRACTS
AND AGREEMENTS
7.
MESA,.�a.DRiVE WIDENING PROJECT - APPROVAL OF
C- 3518(A)
PROFESSIONAL SERVICES AGREEMENT WITH CIVIL WORKS
(38/100 -2005)
ENGINEERS. 1) Approve a Professional Services Agreement with Civil
Works Engineers of Costa Mesa for design of widening Mesa Drive at the
intersection of lrvine Avenue at a contract price of $64,734 and authorize
the Mayor and City Clerk to execute the Agreement; and 2) authorize a
budget amendment (05BA -062) in the amount of $36,054 from the
unappropriated balance of the Circulation & Transportation Fund to
Account No. 7261- C5200665.
8.
2004 -2005 TRAFFIC SIGNAL UPGRADES - AWARD OF
C -3764
CONTRACT (C- 3764). 1) Approve the plans and specifications; 2) award
(38/100 -2005)
the contract (C -3764) to Inspection Engineering Construction for the total
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City of Newport Beach
City Council Minutes
May 24, 2005
bid price of $330,280 and authorize the Mayor and the City Clerk to
execute the contract; 3) establish an amount of $33,000 to cover the cost of
unforeseen work; and 4) approve a budget amendment (05BA -061) in the
amount of $201,968 from the unappropriated balance of the
Transportation and Circulation Fund, 260 -3605, to Account No. 7261 -
05200068.
9. Removed at the request of Council Member Rosansky.
10. Removed at the request of Council Member Nichols.
MISCELLANEOUS ACTIONS
11. 2005 -06 PROPOSED BUDGET HEARING; 'N $005 -06
APPROPRIATION LIMIT HEARING. Schedule a public heartngof the
City's Proposed Budget and Appropriation Limit,forstiie 2005 -06 fiscal
year on June 14, 2005 at 7:00 p.m. and direct the City C]erk to publish a
notice of said hearings. /
12. PASSIVE PARK IN THE ( SANTA ANA HEIGHTS
REDEVELOPMENT AREA. Approve the concept plarifor the passive
view park at the intersection of Mesa Drive and Birch Street in Santa Ana
Heights; and direct staff to proceed with the preparation of plans and
specifications and solicit bids for Bark construction.
13. BUDGET AMENDMENT TO.ACCEPT;,A CHECK FROM THE
NEWPORT BEACH LIBRARY ITOUNDATION A�TD APPROPRIATE
FUNDS FOR MAINTENANCE AND OPERATIONS BUDGET FOR
FY 2004 /05. Approve . a budget -'amendment (05BA -064) to increase
revenue estimates by ,5166,708 in Account No. 4010 -5893 (NBPL
FoundationDgnations),and increase expenditure estimates by the same
amount an b-r n 4090: Foundation.,
i
S20. LEGAL PUBLICATIONS FOR ONE -YEAR CONTRACT COVERING
F1901' }EAR JULY 1, 2005 TO JUNE 30, 2006. Authorize the City
Clerk to pAlish a notice advertising for bids to be received on or before
the hour of 4:b0 p.m., on Friday, June 10, 2005 for a one -year contract
covering the 'publishing`• and printing of legal notices, or other material
required to be OAlished and circulated in the City of Newport Beach.
Motion'6—kavor Pro Tem Webb to approve the Consent Calendar, except for
those items remtrved (3, 9 and 10).
The motion canned by the following roll call vote:
Ayes: Heffernan, Rosansky, Ridgeway, Daigle, Nichols„ Mayor Bromberg
Noes: None
Abstain: None
Absent: Webb
J. PUBLIC COMMENTS
Allan Beek requested that Mayor Bromberg's replacement be decided by
election, not appointment. Mayor Bromberg noted that this item is on the
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(100 -2005)
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May 24, 2005
agenda as Item 521.
INDEX
Jim Hildreth presented and read portions of documents that are
supplemental to what was presented to Council at the last meeting
regarding moorings in the Grand Canal.
Paul Glowienke expressed hope that some of the $167,000 that was
presented today goes toward a potential refurbishment of the Corona del
Mar Branch Library.
• Phillip Bettencourt, Newport Coast Community Associatioa>`hredent,
stated that the Newport Coast residents are grateful for the{iecent heavy
commercial vehicle inspections on Newport Coast D,aiad for the
increased presence of motor officers at Newport Coast E*menT'QSchool.
;r
K. ORAL. R.RPORTR FROM (.TTV rnTTMCTT. nM !`f ,4MTTTP rmvx mTvm •
Ad Hoc General Plan Update Committee (GPUC-)'— Assistant City Manager
Wood reported that GPUC and the General Plan Advisor74Committee (GPAC)
have looked at the model analyses of the land use altetmativejz;She stated that, at
the last meeting, GPUC looked more closely at axeas'wiWf there are significant
traffic impacts and what types of land use changes might_%'9'Neausing them so they
can refine the land use alternatives. ,_She reported that tlso discussed the
program for the two public workshops Aich will be held on Sa bwiiy, June 25 at
the OASIS Senior Center from 9 a.m, to noonand from 1 P.M. to,� P.M.
n r c•
Local Coastal Program Certification Comma — Council Member
Ridgeway reported that staff has been co>i nicating with Coastal Commission
staff to get clarity on whi t they want changed in the Land Use Plan. Assistant
City Manager Wood stated that both sides have agreed to reconsider some of the
requests.
tee: >r .
Mariners Joint Use Library Ad Hoc Steering Committee — Council Member
�.
Ridgeway reported that the library is under construction and noted that the steel
structure ha Ubmcrected.'%-' "
!'A
City Council/ Citizens Ad Hoc Conunittee for Marina Park Planning —
Mayor .. Bromberg stated that the committee has received a number of
presentations and believed that this will come back to Council in a few months.
He repoctea.that the committee discussed whether to hire a consultant to do cost
analyses ou¢6e potential uses, but it was determined not to do that because it's up
to Council to r -e potential uses and have studies done if they choose. He
noted that the`pommittee is charged with just bringing back alternatives. He
announced tha €the committee meets the third Tuesday at 4 p.m, in the Council
Chambers.
City Council Ad Hoc Marina Park Advisory Committee — Council Member
Ridgeway noted that the issue of the mobile home park was on the agenda at the
last meeting, but since that meeting lasted until 1 a.m., the item was continued to
the June 14 meeting.
Measure M — Mayor Bromberg noted that he appointed Council Member Daigle
to speak on behalf of the City regarding Measure M which is the .05¢ tax for road
improvements. Council Member Daigle noted that Measure M has funded a large
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May 24, 2005
L.
number of traffic and roadway improvements for the City.
Fourth of July Committee - Council Member Rosansky reported that the
annual meeting will be June 6 in the Fire Conference Room at 4 p.m.
Zoning Committee - Council Member Rosansky announced that the first
meeting will be held on June 2. He stated that they will be looking at zoning in
the City in an effort to simplify and streamline the process.
Newport Coast Advisory Committee - Council Member Heffernan ported
.
that they meet next on June 6 at the Newport Coast Elementary --%,_,.He
stated that they are working on the schematic plans and the poten ' conveyance
of land for the community center. He believed that they will also'�i —about the
school issue at Newport Coast Elementary School.
r
Toll Road Committee - Council Member Heffernan indicated Shat he att�nded
the meeting for Mayor Pro Tem Webb. He stated that .tfie" tolltrbad agency will'9ii .
facing dire financial consequences in two years and will probably be raising the
toll fee in July.
Finance Committee - Council Member Heffernan stated that Council Members
Daigle and Rosansky serve on the committee with him. He indicated that, at this
week's meeting, they discussed two potential sewer and freshwater rate hikes and
talked about financing options for the Civic Center
Telecommunications Committee - council Member Koffernan stated that
Council Members Daigle and Nichols serve on the' committee with him. He
reported that the City has 18. cell site applications pending or in process. He
indicated that they alsodiscussed the cabWe ranchise'agreement and noted that
each cable subscriber eontractis worth about$3,000.
14. PLANNING COMMISSION AGENDA FOR MAY 19, 2005.
Senior P1Nnnp* Alford reported that the Planning Commission considered
an Alcoholic Beverage Outlet (ABO) use permit for the Red Rock Chili
Company in Fashion Island and approved it.
Senior Planner.Alford reported that the St. Andrew's Church expansion
project returned to the Planning Commission. He stated that the church
requested changes to the parking provision, specifically relative to the off -
site parlorig agreement with the school district. He reported that the
Commission voted 5 to 2 to recommend approval to Council. He indicated
that this will be brought before Council soon.
Senior Planner Alford stated that the Commission received a presentation
from Applied Development Economics (ADE) on the fiscal impacts of the
land use alternatives.
In response to Council's questions regarding the St. Andrew's Church
project, Senior Planner Alford stated that the Commission relieved the
church of the condition related to the off -site parking agreement with the
school district. He indicated that this allows them to pursue onsite and
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City Council Minutes
May 24, 2005
off -site parking options. He stated that there were a number of minor
revisions to the other conditions. He noted that the Commission expressed
their hope that the applicant and the neighborhood would get together
and reach a compromise. Mayor Bromberg believed that this will be
discussed at a special meeting. Senior Planner Alford indicated that, if
the applicant doesn't have an agreement with the school district, they will
most likely build a parking structure. Assistant City Manager Wood
confirmed that they are still required to have a certain number of parking
spaces but it's up to them on how they get it. She stated that there was
discussion about possibly having parking further off -site with bottle
service. She indicated that this wasn't included in the condit�bn use
there was concern that, if it was less convenient for the congregation, they
would likely park in the neighborhood. Senior Planner Alford noted that
Council will receive a full report on the Commission�s action and the
revised conditions.
M. CURRENT BUSINESS J
15. EMPLOYMENT AGREEMENT FOR POLICE CHIEF BOB
M CDONELL.
.S'
City Manager Bludau stated that the recommendation is for Council to
approve an employment agreement for Police Chief`%Oonell who intends
to retire on July 1. He reported that Council Poliey.,iequires that any
request for an employee who retires.alld is considered,�or reemployment
within five years of retirement be approved 'by Council' He indicated that
the Chief intends to retire becaus4,of how PERSiisset up. He noted that
the agreement is for the Chief to s5ty, on for upj two years. He believed
that it is essential for the City to retain his services for as long as possible.
He reported that this is allowed under the PERS system and has been
done elsewhere in the State and County:' He stated that the agreement
makes the Chiefs employment look much as it does now. He pointed out
that, if appro`ved;'this agreemeat.would save the City about $26,000 in
retirement costs and medical lienei -its. He indicated that he cannot state
stromgfy - enough how amuch_ confidence he has in the professionalism,
integrity; and management ability of Chief McDonell. He stated that this
is a high priority for him,
In response to Council questions, City Manager Bludau indicated that the
o*. difference�fietween the terms of the agreement and his current
employment isthat there will be a financial savings to the City. He stated
that,`, i n.& number of years he has worked, he is maxed out in the
PENS formula and his retirement will not increase. He explained that
Chief McDonell will be a retired employee in the PERS system, will be
receiving retirement and pay from the City, and the City will not need to
pay the PERS contribution anymore. He reported that the City will be
contributing some retirement money in an annuity, but it will still be
saving $26,000. He confirmed that Chief McDonell cannot draw any more
money from PERS because he's maxed out. He stated that it is like hiring
him as a private contractor, but in lieu of paying into the PERS system,
the City is going to be paying into his private annuity.
City Manager Bludau reported that Chief McDonell is allowed to work up
to six months per calendar year, but can work more than six months next
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C- 2954(A)
(38/100 -2005)
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City Council Minutes
May 24, 2005
year if Council adopts a resolution that is sent to PERS requesting an
exemption from the six month limitation. He stated that PERS grants
exemptions all the time.
Dolores Otting asked how much money will be going into the annuity and
how many other people will be taking advantage of this since not many
people get to retire with 100% of their salary. Noting that PERS does
these exemptions all the time, she suggested changing PERS so the City
doesn't have to go through this. City Manager Bludau stated that the
state legislature, not the City, can change the PERS system He reported
that the annuity will be about $45,000. He noted that he iutenai'to be
very judicious before any recommendation relative to hiring back a City
employee goes to Council. Council Member Heffernaii indicated that
Governor Schwarzenegger is trying to change the retirement system so
people pay into the plan rather than be guaranteed a benefit
J;
Motion by Council Member Ridgeway, to approve the proposed
employment agreement, by which Chief Mcllonell would continue to serve:
as the Newport Beach Police Chief after his official retirement.
Council Member Ridgeway stated that it Lt important for the Chief to
continue the continuity at the Police Department Further, Chief
McDonell has a number of intra - agency programs he's involved with that
he would like to complete. He indicated that there is no heir- apparent at
this time, but one will probably sn ri oe during this tivb year period so
there is a smooth transition. He,repoited that Chief ?McDonell has saved
the City millions of dollars in claims agairist t6 City and has brought
back integrity and a high level of service to the Police Department.
The motion carried by the following roll call vote:
Ayes: Hefferuan. Rosans7cy, Ridgeway, Daigle, Mayor Bromberg
Noes: None
Abstain: Nichols
Absent 'Webb
16. ADOPT RESOLUTION REGARDING INTERIM FUNDING
REIMBURSEMENT AUTHORIZATION FOR PROSPECTIVE CITY
HALL COMPLEX AND RESCIND RESOLUTION NO. 2003-41.
i
Admimstrativc'services Director Danner reported that Council adopted a
resoluti on the last time Council was considering rebuilding City Hall that
allowed•foi the reimbursement of any expenses incurred prior to the
financing recommendation being adopted. He stated that the best guess
for the rebuilding cost at that time was $35 million. He reported that,
since the project includes a fire station and parking structure, they are
recommending that Resolution No. 2003 -41 be rescinded and Council
adopt a resolution that has a $50 million maximum amount. He stated
that they are not saying that the project will cost $50 million or that they
will request reimbursement, but it leaves the options open.
Council Member Rosansky noted that Roger Torriero of Griffin Structures
said that the total cost would be $41.5 million and asked how they came
up with $50 million. Administrative Services Director Danner reported
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n,
(100 -2005)
City of Newport Beach
City Council Minutes
May 24, 2005
INDEX
that there are costs involved with issuing a Certificate of Participation
(COP). Further, since the City won't have use of the facility while it's
being built, there will probably be debt outstanding and the City will be
paying capitalized interest and the principal on the COP for a year prior to
occupancy. He indicated that on any bond issue, regardless if it is a COP
or general obligation lease revenue bond, there's a reserve requirement
which is normally equal to the annual debt service. He reported that this
money is held in reserve for the bond or certificate holders and is used to
make the last debt service payment. He indicated that the financial
consultant estimates that the components mentioned would ra ge from
$45,150,000 to $50,000,000. He added that the $50 million a}io'u4udes
an increase in interest rates between now and when the pritificatesAre
sold.
Council Member Heffernan reported that, at th@ F#Wnce Committee
meeting, he was told by the financial consultant t�s �hC ate todayr%t a
30 year bond would be about 4.7% if the Citv wa qu
s rated' w ich eates to
about $3 million a year in debt service; "He asked if the City hap
considered future capital expenditures'' anrelald to City Hall.
Administrative Services Director Danner stated thiL. -* facilities needs
study is one of the top ten priorities for the City' He repo d that there is
a $2 million reserve for capital improvements w u�ch.is designed to meet
some of the needs of the facilities. He indicated thatjhty are proposing to
�.
increase the reserve from $2 mi]li $10 million in th��roposed budget
to be adopted in June. He expW:,- at this can bc)done because the
City has not had to use the PERS reserve of, $9 inillion and will be
proposing a transfer of $4 millionfrom Xh PER$, serve into the capital
improvement reserve He added lhaC'''additioua) moneys will also come
from the current �udge.L He conE>»ned for Council Member Heffernan
that the City;itias looked at its capital expenditures on a five and ten year
plan, looked at the reserves. and determined that the City has the money
to do thoiee "Na&s. FLirther it's premature to increase this $50 million
debt amount to'alpo fund the other projects because they're either already
funded or it doesn't make sense to borrow money now to do something so
.--
fai an'the Suture and pay the interest in between.
Council Member Nichols asked if City property has to be dedicated as
backing for th;tOP. Administrative Services Director Danner indicated
that this is an oRtion, but the City is not choosing to do that. He reported
that this is simly a lease /purchase agreement for the facility itself and is
the �`ieason for,ibe capitalized interest. He stated that they cannot lease a
facili that as not built, so the are
ty y proposing to include the interest and
princip4�si the COP for the year that it's under construction. He noted
that thef'acility they're proposing to lease back is the City Hall facility and
nothing else.
City Manager Bludau reported that the City has an AA rating, but it was
discussed at the Finance Committee meeting to have the City obtain
insurance to have an AAA rating. He stated that, whether the City
pledged properties or not, the COP would be rated AAA. Council Member
Heffernan stated that the people who buy the COPS don't see a difference
between pledging the COP for the City Hall or towards the credit of the
entire City as long as the COP is rated and insured. Administrative
Services Director Danner reported that they can bring the City's
Volume 57 - Page 257
City of Newport Beach
City Council Minutes
May 24, 2005
114111) ►:/
underlying debt rating from AA to AAA by buying insurance. He stated
that the insurance will be less expensive for Newport Beach than other
cities that have an A or BBB rating because of its name and good financial
standing. He reported that Santa Monica is the only city in the State that
he is aware of with an AAA rating. City Manager Bludau indicated that
the City's AA rating puts it in the top 15 0h to 20 %. He assured everyone
that no one will be paying more property tax than what they would be
paying without the project. He stated that this would be paid out of
revenues that would normally come into the City. Council Member
Heffernan explained that a bond, which is a voter issue, is a line item
listed on your property tax bill and a COP is a cost, item to the.Gti�y: "."
Dolores Otting asked when the plan of what needs fixingavi b`e available.
.,
She noted that the City's rating is AA -. She expressodconcem that $50
million is being iscussed which will actually cost. a , .,
g y taut $3.7 mai'hon a
year. She stated that the City has other indebte_�nesq. it pays,74hich
means the City will be paying close to $8 million a year- the hoped t3zat
the City would get an appraisal of the current property and consider "e
third option which relocates City Hall. She asked if, the schematics that
will be available in September will be complete She believed that we
don't need a new City Hall, especially at this location. She reported that
the city hall in Hesperia for $26 million included'a.lrary, redevelopment,
and commercial. Council Member Ridgeway note -ihat the City Hall
component is $21.5 million and_thp City's project includes a parking
structure and fire station. Mayor'1i0inberg reported ,0at the City Hall
Building Committee dealt with t�e re :issue twice, brought it back
to Council twice, and finances were not looked at because Council was not
interested in relocating City Hall.
.1
Paul Glowienke asked how an additional 550 million of indebtedness will
impact the (4tty's future credit rating:aiid what levels of efficiencies will
occur that allow it to. serviee the 'debt over 30 years. Mayor Bromberg
indicated that'h3s second question is answered in the needs assessment
report. City Manager Bludau stated that, if the City makes its payment of
$3:mil n -a year, it wM probably enhance the City's credit rating because
it has had so little debt overklhe past few years and will gain experience.
Jim Hildreth.'questioned having a new Council Chambers and a
community meeting room, unless it was for earthquake purposes. He
stated that he lids not seen anything regarding keeping documents.
f
Motionbv Council Member Rideewav to adopt Resolution No. 2005.30
and rescinded Resolution No. 2003 -41.
Council Member Nichols asked if this should be considered tonight,
believing that Council needs to discuss how the fire station is oriented,
talk about issues regarding high rises, and determine whether this is the
right location. City Manager Bludau reported that this makes no
commitment on whether to move forward. He clarified that this gives
Council a reimbursement option through the sale of COPS for any
expenses incurred for the project. He stated that the City may not want to
do this, but this just gives the City an option.
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City of Newport Beach
City Council Minutes
May 24, 2005
Council Member Heffernan noted that he voted against the project and the
relocation, but explained that the reason the City is doing this is to have
the bond documentation in place to capture the low interest rates. He
emphasized that a 19/ difference in rates is a huge amount on $50 million
and believed that this is a small cost to lock in that rate. He indicated
that this is a prudent thing to do since the rates are very low right now.
He agreed that this doesn't commit the City to anything.
The motion carried by the following roll call vote:
Ayes: H
Heffernan, Rosansky, Ridgeway, D
Daigle, N
NichoO:,'-�Ma_ or
Bromberg �
�'r
Noes: N
None '
'O
Abstain: N
None r
r5
Absent: W
Webb t
ti
17. REFORESTATION R
REQUEST HARBOR V
VIE� '
''HILLS SOUTH
HOMEOWNERS ASSO C
c,
Acting General Services Director Pisani reviewed Lhe staff report and
reported that the Harbor View Hills South Homeowners Association's
submission met all the requirements of the G -1 Po":. He stated that the
policy allows legally established associations to app'iy'for reforestation if
they delineate specific tree locations, the board of� ucctors notifies
association members and gives:.tl ID";ih - opportunity t comment on the
request before they vote on the request, Jhe.associatton pays all the
removal and replanting costs, an(tthey.:4planta' im ' ated street trees on
a one-for-one basis with them nimpm size being 24- inches. He indicated
that the Parks, Beaches & Recreat1�„n, Commission (PB &R) heard this
issue on May^,3 and the motion failed Y a 3 to 3 vote. He stated that some
of the Commissioners felt that the 'association wasn't doing its job
enforcing'it Covenants, Conditions and Restrictions (CC &Rs) since many
private trees were taller tlhsa the City trees they were asking to be
reforested.
Mayor Bromberg indicated that he is unsure why PB &R voted against this
since this re4iiest is consistent with the G -1 policy. Council Member
Nichols stated't6t this request has gone through all the needed steps,
meets the G -1 P, cy requirements, only deals with 19 trees, and the trees
block ocean views. He believed that denying this request tells the
community thatrthey cannot make their own decisions. He indicated that
Urban Fores6r Conway believed that this should be approved. He added
that the.,Asidents have a procedure to handle private trees within the
In response to Council Member Ridgeway's questions, Acting General
Services Director Pisani indicated that the trees will be removed by the
tree contractor and will not be saved since they will not be replanted or
resold. He believed that the cost to containerize or clam shell the trees
would exceed any value the City would get from them. Council Member
Ridgeway asked him to research this, but stated that he is supportive of
the recommendation. City Manager Bludau noted that the homeowners
association pays for any cost involved in cutting down or saving the trees.
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Yvonne Houssels, President of the Harbor View Hills South Homeowners
Association, distributed photos and requested that Council approve the
reforestation request since they've complied with all the G -1 policy
requirements, as they did for the three previous stages. She noted that
they are a view community and the trees to be reforested are impacting
views. She indicated that they were surprised when three Commissioners
took issue with how they enforce their governing documents and explained
that their board attempts to maintain as many trees as possible and does
not require trimming or removal of private trees unless they receive a
complaint and the tree is investigated by the Tree View Chairpereop. She
reported that the use of 24 -inch box trees is permitted undiP;ite.G -1
policy, especially in the view communities, and noted that !he pre�ious a,.
stages were approved with 24 -inch box trees. She indicated that staff and
the association agree that 36 -inch box trees are too large for titCparkway
and will most likely cause compacted roots and unhealthy trees: ,. She
stated that the wrong trees were planted in the park" ay and has t6 be
topped and trimmed extensively. She pointed out that no one from tie
association is contesting the reforestation.
Debra Allen, Parks, Beaches & Recreation Commissioner, distributed a
letter from her neighbor and from the Cameo Community Association, and
stated that a number of her neighbors, including -the President of the
Harbor View Hills Community. Association, are present to support Harbor
View South's application. She stated that it would expotieatially increase
the cost to view communities toclain shell.trees She reported that, since
the contractor will remove the trees forsm per tree, the associations can
conduct large scale reforestations'and replant witli` the designated street
tree. She reviewed-the process for,the assa:iations and expressed the
opinion that the (itv,iias no business allowing t teir trees to violate and
void the associations' CC&Rs.
Tim Bro",' Parks, �Bea @ies C. Recreation Commissioner, expressed
concern that, if this iequesi is denied, the City is not being consistent in
its application of public policy. He noted that the other Commissioners did
not &e 6nstrate that this request was different than the previous three
requcsu'.lti expressea MaoI ncern for the life of the trees being removed.
He stated thatprior to discussing this issue, PB &R had an emotional issue
and believed that some'of that emotion carried over to this issue and had
some influence on the vote.
Mated that he lives in Harbor View Hills North and
support for the request because view protection is
Brian Corrigan stated that he moved to his neighborhood because of the
views. He noted that a lot of effort went into the G -1 policy and his
association works very hard to comply with it. He stated that some of the
trees cannot be trimmed down without looking like a nub. He noted that
the trees are only trimmed every three years, but, his trees will grow and
block the view to the ocean within six months. He requested that Council
remove the trees since he spoke to his neighbors, they are fine with the
request, and he is paying for the reforestation. He believed that the PB &R
Commissioners should've contacted him about his trees rather than just
make a drive through the neighborhood.
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Barry Allen stated that he is the Civic Affairs Officer for Harbor View
Hills Community Association and reported that their association also has
language in their CC &Rs regarding view preservation. He indicated that,
if there is a complaint about a private tree, there is a process for
investigating the situation. He emphasized that no one wants their view
hindered by City trees. He expressed his association's support of staffs
recommendation since the Harbor View Hills South Homeowners
Association met all the G -1 policy requirements, will fund the entire cost
for the reforestation, and the PB &R Commissioners who voted against the
reforestation are not present to explain or support their position.,/
Lloyd Krause reported that the current trees are pruned -',by the City
during its cycle but, within a few months, the trees grow.baci to the same
height as before. He discussed photos that showed how quickly the trees
grew and believed that the solution is reforestation.A'Ni. "•
,
t
`i. -:
Bud Volberding, Harbor Views Hills Community Association President,
expressed the association's support of the recommendation and read the
letter from the Chairman of the Cameo Reforestation' Committee.
v
Allan Beek stated that he agrees will all the speakers. t
Harbor View South resident stated that it's hard toeRlain the dynamics
of view sight lines, adding that`the sight line may appox'different when
driving down the street versus seeing il►e.actual view. believed that it
would be expensive to save the current trees due to their size, the location
of the sidewalks and curbs, and the tbickriem,, a!X length of the roots.
Further, it may be�impossible to safely-.e. trees. He stated that
the G -1 policy iss goodpohcy that should be allowed to work.
Council Member Ridgeway stated that the subcommittee worked on the
current G-] po& formonths;andthei 'subcommittee, PB &R Commission,
and the City Couricil`voted unanimously to approve it. He agreed that the
trees_ cannot be harvested. He "reported that he called the Commissioners
whn voted against this and was not given a clear reason why they voted
the way-.:, iey did. Ire 'questioned why 24 -inch box trees were
recommended— en 36 -inch box trees would fit in the parkways and asked
who pays fort reforestation. Commissioner Allen reported that the
applicant can on% be the homeowners association, but how the association
raises the monk}* to pay the City is up to them. She explained that they
diaq i require ro -inch box trees in the view communities because it costs
about'E1,O00$er tree to take out the new tree and put in a 36 -inch box
tree versus $200 per tree for a 24 -inch box tree. Further, 36 -inch box trees
don't do as well in the five -foot parkways. Council Member Ridgeway
stated that he has planted hundreds of trees in his developments and that
he is not persuaded by the economic argument.
Motion by Council Member Nichols to approve the reforestation
request.
Council Member Daigle stated that each tree has had so much pruning
that they resemble a telephone pole more than a tree. She expressed her
hope that what the City will be planting in its place will look good in ten
years and won't grow to the heights that will need extensive pruning.
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Council Member Ridgeway stated that he asked the Commissioners to tell
him where the G -1 policy says they could vote how they did. He reported
that they couldn't find a section.
The motion carried by the following roll call vote:
Ayes: Heffernan, Rosansky, Ridgeway, Daigle, Nichols, Mayor
Bromberg
Noes: None
Abstain: None
Absent: Webb
is. INTERIM URGENCY ORDINANCE ESTABLISHING A
TEMPORARY MORATORIUM ON THE ESTABLISHMENT AND
OPERATION OF MEDICAL MARIJUANA DISPENSARIES:
City Attorney Clauson reported that the voters adopted the
Compassionate Use Act of 1996 which relieved certain qualified
individuals and primary caregivers from State criminal sanctions for using
marijuana for medical purposes when the qualified .individuals were
seriously ill and a medical professional determined that the use of
marijuana could help their medical condition. She stated that, since 1996,
there have been a few cases published regarding `whether someone who
was arrested for growing or selling marijuana would gtiaiifg as a primary
caregiver or qualified individual. "SS6 reported that, in tdie last month, the
City has received three inquiries about opening a medical marijuana
dispensary or medical marijuana co -op. She ' stated that, after their
investigation, they.had questions about whether the concept of medical
marijuana dispensariea or medical marijuanaI co -ops was envisioned by
this Act and whether it was legal. She reported that the other issue which
is before the Supreme Court is the declaLDn whether Federal law regarding
the sale and use of marijuana preempts State law. She noted that this
decision hasn't occurred yet.'.
GityAtiDrney Clauson indicated that they are recommending that Council
adopt the,'inoratorium to give the City Attorney, Planning, and Police
Departments. time to look at these types of facilities and determine how
they might qualify as a primary caregiver, and to make sure the City
generates appropriate regulations and identifications for locations and
operations if it is determined that the City needs to regulate them.
City Aitorneg Clauson reported that the urgency ordinance requires a 415
vote, morenformation will be brought back to Council in about 45 days,
and then Council may decide to extend the moratorium for an additional
10 months and 15 days which would make it a year. She explained that
they may need that much time since there are quite a few legal issues that
need to be resolved. Further, they need to determine what the impacts
are in order to come up with additional regulations. She explained that
the State rules are specific relative to relief of criminal sanctions for
primary caregivers and qualified individual; however, State law is not
clear that a person can open a dispensary to sell it. She stated that they
will need to find out how they operate, how they operate to qualify as a
primary caregiver, and then determine the appropriate regulations so
there are no land use problems. She noted that these facilities are so new
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and the City has only received inquiries, so she is not sure what they
would look like.
City Attorney Clauson confirmed for Mayor Bromberg that, if someone
opened a facility tomorrow and the Supreme Court determined that it
wasn't allowed, the facility would close down by operation of law. She
explained that they are doing this because there is no authority in the
zoning code today for this type of business to open up as a use. Further,
there is no identification in State law that authorizes operation. She
indicated that it's her opinion and recommendation that they�� this,
otherwise the City has no regulations and someone can open ad "these
businesses, start selling marijuana, and the City will be foleced to issue
some type of business license. She expressed the opinion dit.the State
law is not clearly defined to allow the sale of medical mkijuanaafba retail
use. She emphasized that the only thing the City is pposing to.prohibit
is the City issuing any type of entitlement or buea sTicense to op!n a
marijuana dispensary at this time. u
Jim Hildreth stated that the voters approved this and the State and City
. <..
have had plenty of time to figure out wbat.Was going.'-on. He indicated
that the City already has places that can dispeiNeviedication, called drug
stores, and he doesn't see what the complaint is. F%'itated that the people
who use marijuana are in pain and use it for meth z%asoas, and people
f. ..
need to have compassion like thelaw,.says.
Motion by Council Member 4 a � M
$id¢ewav�W: adop�, Urgency Ordinance
No. 2005 -7 placing a temporary 1orty -five (Ati). -ay moratorium on the
establishment and operation of medicahmarijuangcdispensaries.
The motion carried by the following roll call vote:
Ayes: .. Heffernan, Rodaneky, {Ridgeway, Daigle, Nichols, Mayor
Bromberg
Noes: None
kbsta —.Done
Absent7' Webb
Mayor, Bromberg recessed the meeting at 9:50 p.rrL and reconvened the
meetingat 10:05 p.m. with all members of Council present.
tw
19. TRIQ_GENERATION AND FISCAL IMPACT ANALYSIS OF THE
GENERAL OLAN UPDATE LAND USE ALTERNATIVES.
k"
Woodie Tescher, EIP Associates, stated that Council changed, modified,
and made additions to the land use alternatives. He indicated that, as a
result of this process, they have been assessing the implications of the
alternatives relative to traffic impacts, environmental impacts, and fiscal
impacts. He referenced Table 20 in the staff report and stated that it lists
the options used in the cumulative Citywide analysis.
Doug Svensson, Applied Development Economics (ADE), utilized a
PowerPoint presentation and reported that tonight's analysis does not
account for inflation, reflects the annual operating costs and revenues, and
does not address the capital improvements that may be required to
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INDEX
support the developments. He noted that a fiscal analysis is not a market
analysis. He displayed a graph of the relative impacts of various land use
categories and highlighted the impacts of visitors to the community. He
noted that they're only looking at one aspect of this tonight; however, all
the land uses have economic relationships within the City that contribute
to the fiscal outcome. He stated that they don't want to discard certain
land uses on this basis, but want to build a land use mix that contributes
to an overall balance.
Mr. Svensson reported that, as the trip generation increases. ,the fiscal
benefit also increases due to development. He added that ,iCis also a
function of the land use mix within each alternative. He 44layed slides
of the alternatives by major subarea. Regarding the "true m ums', he
noted that the Newport Center area has the greatest potential for fiscal
benefit, while the West Newport Industrial area counterlialances i"t,with
a negative that relates to the expansion of the .hospital -which is a non-
profit organization and doesn't pay property tax. I4e reported thaf`tli`is.
alternative includes the option of leaving Banning Ranch as open space..
but noted that the cost of purchasing the land and m4intaining it would.6e
substantial and is not included in these-.charts because the cost is
uncertain and may even be an infrastructure post. For "subareas only
minimums', he pointed out that the airport area plays a stronger role in
generating revenue. He reported that the "maximiW: alternative has a
strong contribution from the airportarea and Newport Center area.
' r
Mr. Svensson displayed slides of the individual areas and reviewed the
fiscal differences between the existing Q,6neral Piii'and the options. He
stated that, for the ,airport area, tl a General Plan option has zero impact
and the General Plan Advisory Committee (GPAC) options focus on mixed
uses that add more commercial development and lodging. He indicated
that, in the'Balboa Village area, the existing General Plan would have
multi• family :ieridential:.aevelopment' and the options have different
combinations of.'similar larid':uses'or adds commercial or lodging to the
mix. For Banning Ranch, heTeported that the existing General Plan
allawe a substantial amount of development, but because of its location, a
lot of the development will tic industrial and office uses that don't do well
from a fiscal .standpoint.' lie indicated that the options also include open
space and a small resort. He stated that, in West Cannery Village, the
c ;•
alternative adds':` mixed uses. He indicated that the options for East
Cannery Village.adds commercial or multifamily residential. Regarding
Coi pia del Mai he stated that the existing General Plan and the options
involve expanding the single family housing stock. He reported that, on
Lido Isle, the General Plan allows some of the existing units to be replaced
with two units. He indicated that, for Lido Village North and South, the
existing General Plan doesn't have a great deal of development potential,
but the options focus on lodging and commercial. Mr. Svensson reported
that the General Plan allows some incremental development of
commercial and lodging in Mariners Mile, and the options add mixed use
development and marine uses. He stated that, in McFadden Square, the
existing General Plan focuses on housing and the options add mixed uses
and lodging. Regarding Newport Center/Fashion Island, he indicated that
Option 1 focuses on increasing commercial and retail development and
adds a substantial amount of lodging. He stated that Option 2 includes
more office space and Option 3 adds more retail, but neither of these have
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the same impact as Option 1. He indicated that, in the Old Newport
Boulevard area, the existing General Plan adds single family housing and
the options focus on additional medical offices and motel rooms. He noted
that the West Newport Highway area already has lodging but the options
look at replacing some of that with other development. He indicated that,
for the West Newport Industrial area, he took the hospital out of the mix
since it's a consistent element. He reported that the existing General Plan
and Option 1 focuses on additional industrial development, Option 2
focuses on additional office development, and Option 3 replaces those uses
with more housing. ,AL
In response to Council Member Nichols' questions, ,, SvensAbn
confirmed that this analysis did not include traffic anal 'Assistant
. mac_
City Manager Wood reported that traffic impacts willbe discussed at the
next meeting. y�
Allan Beek asked if the fiscal benefit to the CiLT and fiscal benefit to
the land owners could be compared. He also asked that the different''
relationships associated in the economic and fiscal 1kationships slide. be
quantified. Mr. Svensson stated that there will bea.}her interest in
developing the land uses if the market is strong an�the demand is there.
He indicated that cities are faced with balancing between meeting market
demand and having non - residential economic de%A"l .tnen He stated
.
that they do need to look more camfully at the amount, different land
uses that they can reasonably `expe from the standpimt of what the
landowners, developers, etc. want to ab:':ii�reporteil that an economic
development strategy will be conducted taYocus ';meat the City can do to
improve its job base,and to deal with the economic relationships between
residential and no'n4esirlential land uses to be sure this balance is
maintained over time. `.
S21. PENDING RESIGNATIQN:OF KAYOR BROMBERG FROM THE
CITY COUNCIL AND THE,bPT30NS AVAILABLE TO THE CITY
COUNCIL FOR FILLING THEVACANCY IN DISTRICT 5.
City Cle4k Harkless reported that staffs recommendation is to have
Council declare, Districi' -5 to be vacant as of June 17, 2005, set the
deadline for receiving applications and establish an interview date. She
noted that, once Mayor Bromberg is sworn in as a judge, he can no longer
serve on the Ci* Council. She read City Charter Section 403. She noted
tliai Mayor Biomberg's term does not expire until November 2008;
howeve% according to the Charter, the appointment will serve until
November 2006 and then the seat will be on the ballot for the remainder of
the twoyear term. She confirmed that the person can run for a full term
in 2008.
Council Member Heffernan believed that the Charter allows Council not to
appoint someone within the 30 day period and then, by default, an election
would have to be conducted. He asked how many times in the City's
history has Council made appointments. City Attorney Clauson indicated
that this has happened very few times. She stated that the Charter
requires Council to fill the vacancy by appointment; however, if Council
fails to fill the vacancy by appointment in 30 days, then an election is
supposed to be called. She noted that the Charter says "shall appoint" and
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INDEX
does not give Council the authority to say
not want to appoint.
Allan Beek believed that, since this is the Governor's fault, he should fix it
by having a special election at less expense to the City than if the City had
to call its own election. Mayor Bromberg noted that this would be
violating the City's Charter. Mr. Beek indicated that it wouldn't if there
happens to be a 3 -3 vote. He believed that it looks bad when almost half
the Council Members are appointed. Mayor Bromberg stated that there is
only one appointed Council Member seated. Council Member Rosansky
noted that he is an elected Council Member. ^,
Dolores Otting stated that this will be the thud appointme in l Y, years
and noted that this person could be on Council for 11 Y. years mid ' probably
qualify for a pension. She believed that this doesn't lookgood and the City
needs an election. C.:
Jim Hildreth agreed that we're a democracy and should have an electi on. .
He noted that there could be a 3 to 3 split and believed that people should.
prepare themselves for an election.
City Clerk Harkless indicated that, with the resignation being effective
June 17, the appointment needs to be made on ,pr- ,before July 17. She
reported that she can run the legal notices for twn �nsecutive weeks
;. " ac
starting Saturday, May 28 and tbe deadline to turn in".. cations can be
after Saturday, June 4. She iodic- k4that, at the nextACouncil meeting,
Council can confirm the parameters for' fhe„ interviews and set the
appointment date; however, there .as nodiing'tbat''prevents Council from
setting the interview date tonight'. She read the parameters that were
established for the previous appointment and confirmed that Council can
appoint someone on June 28. Council '.Member Rosansky noted that this
had been done, at a special meeting. Council Member Ridgeway reported
that there ' ht be three Council Members gone from July 8 to July 20.
City Manager l6dad suggested mitring the appointment so there is a full
Council on June 28:
Motion by Mayor Brombere to 1) declare the District 5 Council seat to
be vacant as of -June 17, 2005; and 2) establish that the process leading to
the appointment of a 'successor as required by Section 403 of the City
Charter will be that a) the deadline to turn in applications will be Friday,
dune 10 at 5:06 p.m., b) the interviews will be conducted in the Council
Chambers at a-` Special Meeting on Tuesday, June 21 at 6:00 p.m., c) the
interviews, Wit be televised, d) about 25 minutes will be allotted to each
Council`,ca didate for questioning which would include a two minute
opening'statement and a five minute closing statement by the candidate,
e) the order of the interviews will be determined by drawing the names
from a hat, f) the candidates will be sequestered and return to the
sequester area after the interview, g) if Council accepts the candidates,
Council will appoint by a majority vote of the City Council, swear in, and
seat the District 5 Council Member at that time.
Council Member Rosansky recommended that the opening statement be
five minutes and the closing statement be two minutes.
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Mayor Bromberg amended his motion to change the opening
statement to five minutes and the closing statement to two minutes.
Regarding the appointment of a new Mayor, City Attorney Clauson
indicated that, according to the Charter, an election for Mayor would be
conducted at the time that the new Council Member is appointed. She
confirmed that the Mayor Pro Tem is a separate position that's been
identified to act in the absence of the Mayor, but not identified as someone
who automatically takes over for the position since there is no succession
in the City. She stated that this will need to be an agendizcd item either
for June 21 or June 28. Mayor Bromberg believed that the. 'e Pro
Tem would preside over the meeting until Council elects a ne4*.Mayor.
Council Member Daigle asked if Mayor Bromberg can°.participAe in the
n
Mayor election on June 14. City Attorney Clauson . '6elieve8 ;Y&t he
couldn't because there is no vacancy and pointed out :6e vacancy'as in
the Council District, not the Mayor seat. She indicated t)iat she has not
analyzed whether Mayor Bromberg could-, resign gas Mayor and then
participate in the selection of a new Mayor prior to hie official resignation
date. Mayor Bromberg requested that she look into tblr.,,.
•
Without objection, Council Member Rosansky suggested that this be
brought back at the June 14 .Council meeting so t1WCity Attorney can
research some of these issues. He added that the Mayq. aarbgould be elected
at the June 28 meeting.
Mayor Brombe
rg@men ed his motion to indutSe direction for staff to
bring back a staff report at the June 111 Council meeting that outlines the
process for replacing the Mayor.
The amended motion carried by the following roll call vote:
Ayes: Heffernan, Rosansky. Ridgeway, Daigle, Nichols, Mayor
Bromberg
Noes " '17None
Abstain: None
Absent: Webb
Noting that it was after 11 p.m., Council Member Rosansky recommended
and received no objection to proceed with the Consent Calendar.
_ y,
N. ITEMS REMOVED FROM THE CONSENT CALENDAR
3. RESOLUTION CERTIFYING FINAL EIR, RESOLUTION
APPROVING GENERAL PLAN AMENDMENT NO. 2004 -004, USE
PERMIT NO. 2004 -026, MODIFICATION PERMIT NO. 2005 -030
AND TRAFFIC STUDY NO. 2004 -003; AND ORDINANCE
ADOPTING PLANNED COMMUNITY TEXT AMENDMENT
NO. 2004 -003 FOR NEWPORT LEXUS AUTOMOBILE
DEALERSHIP (PA 2004 -153) — 3901, 3931, 3961 MACARTHUR
BOULEVARD AND 848 AND 888 DOVER STREET.
Council Member Ridgeway announced that he will be recusing himself on
this item and left the Council Chambers for the remainder of the meeting.
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INDEX
Council Member Nichols stated that there was discussion but no findings
that the traffic allowed in and out of MacArthur Boulevard was
appropriate or safe. He noted that the text was changed to allow a 55 foot
parking structure which is also the prominent structure viewed from the
street.
Casey Griffin, applicant, reported that the parking structure is 35 feet.
He noted that the element coming above the structure that makes it
55 feet houses the elevator shaft and is the same height as the tower
element at the corner shopping center. He added that it is 60 feet lower
than the building directly across the street. Council Memberl &hols
asked Mr. Griffin if he could live with the 35 and 55' feet height
restrictions because he intends to ask that this be put into 'the Toning code
rather than have the ability at a later date to build the structiiie to 55 feet
with a 70 foot elevator shaft. City Attorney Clauson'noted thii -these
issues have already been decided and approved -*.6y Council at the last
meeting. She stated that the documents were already approved by
motion, this is not a reconsideration of the item, and is just a request for
technical documentation to approve the re.;olution certifying the
Environmental Impact Report (EIR) and introduce the ordinance that
adopts the PC Text. She clarified that although the ordinance was
included, discussed, and approved at the last meeting, this is the time to
make changes to it, otherwise it would need to be reintroduced at the next
meeting.
Council Member Heffernan noted that etimmercial uses were not allowed
over the entire parcel. Contract Planner Lepo confirmed that this is to
change the use designation so Lents can sell cars on the entire parcel
versus only part of the parcel.
Assistant Ciiy Manager Wood pointed out that one of the sites had no
height limit. Contract Planner Lepo stated that there is no height limit in
the General Plan for the three acres that is currently designated auto
center. He noted that the north portion of the parcel has an eight story
height limit which means that the project is significantly lower.
Contract Planner L.epo confirmed for Council Member Rosansky that
Lexus will need to come before the Planning Commission if they wanted to
add more floors to the parking structure. He assured everyone that they
do not have the right to add more floors, even though it's within the height
limitation. T'
Dolores'1Qtting referenced page 25 of the staff report and asked if ingress
and egress is still allowed on MacArthur Boulevard. Council Member
Rosansky reported that the decision was to include a condition that the
building permit would not be issued until the ingress and egress was
reviewed by the Traffic Engineer. Assistant City Manager Wood noted
that this is Condition No. 28. Council Member Heffernan stated that he
spoke to the applicant, the Public Works Director, and the Traffic
Engineer and reported that he is convinced that this issue will be carefully
looked at before a building permit is issued.
Motion by Council Member Heffernan to 1) clarify the City Council
action of May 10, 2005, approving the Newport Lexus project, and
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certification of the EIR, by adoption of Resolution No. 2005 -26 certifying
the Final EIR and Resolution No. 2005 -27, as amended, approving
General Plan Amendment No. 2004 -004, Use Permit No. 2004 -026,
Modification Permit No. 2005 -030, and Traffic Study No. 2004 -003; and 2)
clarify City Council action of May 10, 2005 approving Planned Community
Text Amendment No. 2004 -003 for the project by introduction of
Ordinance No. 2005 -8, read by title only and waive further reading, and
pass to second reading on June 14, 2005.
The motion carried by the following roll call vote:
Ayes: Heffernan, Rosansky, Daigle, Mayor Bromberg
Noes: Nichols '
Abstain: None a t:
Absent: Webb ht
9. SUNSET RIDGE PARK: APPROVAL ; OF GIROUND LEASE,
BUDGET AMENDMENT, AND ESCROW.INSTRUCTIONS.
mac,.
Assistant City Manager Kiff utilized . a PowerPoinKIi)Xesentation and
re '
reported that, t, pursuant to Proposition 3. lire Oe`Zif'ornia Constitution
allows land in the Coastal Zone to be transferred:a?ats acquisition price.
He reported that SB124 was passed which allowed~,,t�g City to buy the
land at $1.3 million. He explained that CalTrans wou'1 : knsfer the land
to the State Parks and Recreation)Department and thw7 the City would
lease it from them. He reported,that the eking is PeText which allows
15 units per acre, but six acres mist be.e neiglib8rhood or view park. He
displayed the timeline . and confirmed that pail of the bill included a
th
stipulation that.e City, had to develop a park on the site within five
years, so the City wou'IWie spent a lot more money than the acquisition
price.
Assistant City Manager Kiff reported that Council Member Rosansky was
aggressive in pusbing.staff to work with the State Parks and Recreation
Department on the ground lease in September 2004. He indicated that,
during that time. Senator Campbell introduced SB306 which would allow
the City to „have a 25:year lease rather than just a 10 -year lease.
However, at the same `time, the State and Consumer Services Agency
instructed the Parks and Recreation Department staff to stop working on
the. City's ground lease and transfer of jurisdiction documents, and
introduced ABA to try to repeal SB124. He stated that Mayor Bromberg
Sent a' Utter opposing AB54 and the City Manager sent a letter to the
Secretar9.'bf the State and Consumer Services Agency asking them to
expedite SB124. He reported that AB54 passed the State Assembly, but
still needs to pass the State Senate. He indicated that the City would
have performed everything it needed to in order to comply with SB124 if
Council approves the ground lease and sets up the escrow account tonight.
He stated that the City will then go to the State, possibly with a letter
from the City Attorney, to request that they perform what they need to do.
Assistant City Manager Kiff emphasized that AB54 is not law and cannot
become law until January 1, 2006. He stated that staff feels it would be
great to purchase Sunset Ridge Park directly rather than leasing it, but
the price is important. He reported that they are also working on
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City Council Minutes
May 24, 2005
aggressively opposing AB54, unless it is amended to remove references to
Sunset Ridge Park. He stated that the Little League and AYSO will be
contacting the Governor. Further, the City continues to work with
Senator Campbell and Assemblyman Tran. He provided the public with
information on how to contact the Governor, Senator Campbell, and
Assemblyman Tran.
In response to Council Member Heffernan's questions, Assistant City
Manager Kiff reported that, when he and Council Member Rosansky were
in Sacramento last week, the State believed that the property wps worth
between $10 million and $18 million. He emphasized that a qeA iii -.deal
and, by law, the State is directed to transfer this land at S1.3mi1lion.'bity
Attorney Clauson confirmed that the bill allowed the City tulease Sunset
Ridge Park from the State after the City paid the moneg: She pointed out
that the State Parks and Recreation Department has`slready agreed to
the lease.
Council Member Nichols received clarification from Assistant City
Manager Kiff that the recommendation does not approve an $18 million
price tag or open discussions for this amount.
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Motion by Council Member Rosansky td authorize the City
Manager or the Mayor to execute a Ground Lease with the California
Department of Parks and Recreation for the Sunset Ridge Park property
at Superior and Pacific Coas' Hip�isvay in a form' and substance
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substantially similar to the Draft Ground Lease; 2)' approve a budget
amendment (05B.4 -063) allocating:. $676,958 (in addition to the $680,000
already budgeted). I,o pay Califor ia`State Parks to take title to the
property per the terms of Senate BiA 124 (Johnson 2001); 3) authorize the
City to open.and admi.nister an escrow account to cause the Sunset Ridge
Park property.to transfer from Caltrans to State Parks according to the
provisions oFSB 124; and, in the event that State officials offer a direct
sale of the Sunset Ridge''Park property (including Director's Deeds
#040766 -01 -01 and #040766- 01 -02) to the City, authorize the City
Mai ag to negotiate with Caltrans on a direct sale.
The motion carried by the following roll call vote:
Ayes: Heffernan, Rosansky, Daigle, Nichols, Mayor Bromberg
Noes: None �1 i
Abstain: None"
Absent: Webb, Ridgeway
10. BACK; BAY SCIENCE CENTER — AMENDMENT NO. 2 TO
PROFESSIONAL SERVICES AGREEMENT WITH GAIL P.
PI CKART.
In response to Council Member Nichols' concerns, Assistant City Manager
Kiff clarified that the Resource Agencies have tentatively agreed to leave
the Newport Aquatic Center (NAC) alone. He stated that they believe
they're on the right path in helping the NAC keep its beach. He pointed
out that the Resources Agencies that are dealing with the NAC have
nothing to do with the Back Bay Science Center.
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City Council Minutes
May 24, 2005
Motion by Council Member Rosanskv to approve Amendment No. 2 to
the Professional Services Agreement with Gail P. Pickart, P.E.
The motion carried by the following roll call vote
Ayes: Heffernan, Rosansky, Daigle, Nichols, Mayor Bromberg
Noes: None
Abstain: None
Absent: Webb, Ridgeway
O. MOTION FOR RECONSIDERATION - None.
P. ADJOURNMENT - 11:42 p.m
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iiiiiiiiiiii- iiiiiii � \ - ^.,h •
The agenda for the Regular Meeting was posted on May '18, 2005, at 3:00 p.m:.on
the City Hall Bulletin Board located outside of the' City of Newport Beach
Administration Building. The supplemental agenda for the Regular Meeting
was posted on May 20, 2005, at 2:30 p.m on the City Rah 'Bulle n Board located
outside of the City of Newport Beach Administration Building. ~
A..
Recording 5ecreWy ...
City Clerk
Mayor
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City Council Minutes
May 24, 2005
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