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HomeMy WebLinkAbout01 - MinutesApril 14, 2015 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Special Meeting March 17, 2015 I. ROLL CALL - 4:00 p.m. Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich II. PUBLIC COMMENTS Jim Mosher referenced the Closed Session agenda and the Brown Act. He believed that an open discussion of Item A should occur. Regarding Item B, he questioned whether the petition to appeal was filed in a timely manner and noted that a California Supreme Court case number was assigned to the case, but it was not stated on the Closed Session agenda. He expressed the opinion that the City should not spend money to appeal this case. In response to Mr. Mosher's comments, City Attorney Harp reported that the petition to file an appeal to the California Supreme Court was appropriately filed. He indicated that he was not aware that a California Supreme Court case number was assigned to the appeal when the agenda was posted, but indicated that it will be listed on future agendas, if needed. City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. III. CLOSED SESSION - 4:04 p.m. A. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION - INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): 3 matters B. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code § 54956.9(a), (d)(1)): 1 matter Woody's Group, Inc. o. City of Newport Beach, et al. Orange County Superior Court Case No. 30- 2013 - 00687091 California Court of Appeal, Division 3, Case No. 4th Civ. G050155 Mayor Selich reconvened the meeting at 5:40 p.m. City Attorney Harp announced that Council Member Petros was unable to stay for the entire discussion relative to Item B. He reported that the City Council instructed the City Attorney's Office to seek to withdraw the petition filed with the California Supreme Court relative to Woody's Group, Inc. v. City of Newport Beach, et al. He announced that this litigation stemmed from the City Council's decision to deny modifications to the use permit. He reported that Mayor Selich, Council Members Duffield, Peotter, and Muldoon voted in favor of withdrawing the petition and Mayor Pro Tem Dixon and Council Members Petros and Curry voted against the withdrawal. Volume 62 - Page 236 City of Newport Beach Special Meeting March 17, 2015 IV. ADJOURNMENT - 5:41 p.m. The agenda for the Special Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on March 16, 2015, at 1:30 p.m. City Clerk Recording Secretary Mayor Volume 62 - Page 237 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting March 24, 2015 I. ROLL CALL - 3:32 p.m. Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Petros (excused) Il. CURRENT BUSINESS SSl. Clarification of Items on the Consent Calendar - None SS2. "Early Look" at the Capital Improvement Program (CIP) (Part 2) - see Adjourned Special Meeting /Joint Meeting with the Finance Committee minutes under separate cover SS3. Direction on Design of New LED Street Signs (Over Signals) [100 -2015] Deputy Public Works Director Vukojevic provided a PowerPoint presentation with design concepts for illuminated street name signs. He addressed specifications, current standards, incorporating the City seal, going from green to blue signs, options, examples from neighboring cities, and staff recommendations. Public Works Director Webb added that the City has a lot of signal projects and that this is a good time to change the signs. In response to Mayor Pro Tem Dixon's question, Public Works Director Webb stated that there are 121 signals, there would be a hybrid for a while, and that it would take several years to change them all. Mayor Pro Tem Dixon stated she likes the sign with the sail and City name. Council Member Curry indicated he prefers signs that contain the City seal and expressed a preference towards Options 3 and 4. In response to Council Member Muldoon's question, Public Works Director Webb reported that all the concepts cost the same. Mayor Selich stated that he prefers the tradition of the City seal and prefers Options 2 and 4. He also suggested getting Council Member Petros' input since he's a traffic engineer. City Manager Kiff reported that the matter will be presented at a regular City Council meeting. Council Member Duffield indicated that he likes the City seal, but the sail icon is new to him. He expressed a preference for Option 2. Council Member Peotter expressed preference toward Option 2 Volume 62 - Page 238 City of Newport Beach Study Session and Regular Meeting March 24, 2015 Council Member Muldoon stated that he likes Options 2 and 3. Bernie Svalstad expressed his preference for Option 3. Jim Mosher believed that the most functional example came from the City of Costa Mesa which included the block number. III. PUBLIC COMMENTS - None City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION - 5:38 p.m. A. CONFERENCE WITH LABOR NEGOTIATOR (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Deputy City Manager; Negotiators. Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Newport Beach Lifeguard Management Association (NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Employee Association (NBPTEA); and Part -Time Employee Association of Newport Beach (PTEANB). B. CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION — INITIATION OF LITIGATION (Government Code § 54956.9(d)(4)): 1 matter V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL �' Present: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich Absent: Council Member Petros (excused) VIII. CLOSED SESSION REPORT - City Attorney Harp announced that, regarding Item IV.B, the City Council authorized the City Attorney's Office to initiate litigation against AIG to recover amounts paid in excess of the City's self - insured retention as it pertains to the Craig Frizzell, Steve Schulman, Rob Morton, Christine and John Hougan litigation matters. He added that the specifics of the complaint will be available upon the filing with the court. All Council Members voted in favor of initiating litigation. Ix. PLEDGE OF ALLEGIANCE - Mayor Pro Tern Dixon X. INVOCATION - Dr. Muzammil Siddiqi, Islamic Society of Orange County XI. PRESENTATIONS - None Volume 62 - Page 239 City of Newport Beach Study Session and Regular Meeting March 24, 2015 XII. NOTICE TO THE PUBLIC XIII. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Council Member Peotter requested future agenda items regarding artwork in the Civic Center and a sign ordinance dealing with "open house" realtor signs. Mayor Pro Tern Dixon reported that she was honored to represent Mayor Selich at the 44th Annual Police Appreciation Breakfast sponsored by the Newport Beach Chamber of Commerce. She noted that 13 Police Officers were recognized and that recognition also took place on the 20th anniversary of the death of Officer Bob Henry. Mayor Pro Tern Dixon announced that a Networking Speakers Series Workshop will be held in the Friends Room at the Central Library on March 25, 2015, from 8:30 a.m. to 10:30 a.m. Additionally, Friends of the Library will present, Beyond the Canvas, _, Cezanne, in the Friends Room on March 25, 2015 from 7:00 p.m. to 8:00 p.m. Mayor Pro Tem Dixon announced that a earthquake and tsunamis workshop will be conducted by the Fire Department on March 25, 2015, from 6:30 p.m. to 8:00 p.m. in the Civic Center Community Room, and a CERT Skills Training session will be held on March 28, 2015, from 9:00 a.m. to 1:30 p.m. at the Santa Ana Heights Fire Station. Council Member Muldoon reported that he attended the 518t Annual Mayors' Prayer Breakfast and requested that an agenda item be placed on the next agenda to consider placing "In God We Trust" in the Council Chambers. For the next Council agenda, Council Member Duffield requested that Council consider restructuring committees, specifically Harbor- related committees, to be placed under Harbor Commission's oversight, Council Member Curry cotnmentefToti thactment of Proposition 62 and efforts to have it apply to Charter cities. He requested that an item be placed on the Council agenda asking if the City should place a Charter Amendment on the 2016 ballot to require five affirmative votes to place a tax increase on the ballot. Mayor Selich announced the first annual Mayor's Egg Roll on the Civic Center lawn on March 28, 2015, from 10:00 a.m. to noon. He reported attending the Mayors' Prayer Breakfast, the Newport - Mesa Spirit Run, Youth Government Day, and an event at the Balboa Yacht Club regarding City - related activities. For the next Council agenda, he requested placing consideration of awarding a matching grant to the Balboa Angling Club. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR - None XV. CONSENT CALENDAR A. READING OF MINUTES AND ORDINANCES 1. Minutes for the March 10, 2015 Special Meeting /Joint Meeting of the City Council and Finance Committee, and the March 10, 2015 Study Session and Regular Meeting [100 -20151 Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Volume 62 - Page 240 City of Newport Beach Study Session and Regular Meeting March 24, 2015 Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. B. ORDINANCES FOR ADOPTION 3. Adoption of Ordinance No. 2015 -2 Regulating Massage Establishments and Resolution No. 2015 -19 Removing Outdated Massage Technician Fees [100 -2015] a) Conduct second reading and adopt Ordinance No. 2015 -2, An Ordinance of the City Council of the City of Newport Beach Amending Newport Beach Municipal Code Chapter 5.50 Regulating Massage Establishments and Repealing Chapter 5.64 Regulating Holistic Health Practitioners; and b) Adopt Resolution No. 2015 -19, A Resolution of the City of Newport Beach Amending the Master Fee Schedule to Eliminate Outdated Massage Fees, which removes nine (9) outdated massage technician fees from the Master Fee Schedule. 4. Balboa Island Residential Condominium Prohibition Code Amendment Second Reading (PA2014 -170) [100 -2015] Conduct second reading and adopt Ordinance No. 2015 -5, An Ordinance of the City Council of the City of Newport Beach Approving an Amendment to Title 20 (Zoning Code) of the Newport Beach Municipal Code to Prohibit Residential Condominium Projects in the R -BI Zoning District on Balboa Island and Little Balboa Island. C. RESOLUTIONS FOR ADOPTION 5. Addition of Off - Street Parking Meter Zone 31 [100 -2015] Adopt Resolution No. 2015 -20, A Resolution of the City Council of the City of Newport Beach Establishing an Off - Street Parking Meter Zone for the Marcus Avenue Parking Lot (Staff Report Attachment "A "), and amending Resolution No. 2000 -38 to establish Parking Meter Zone 31. 6. Resolution Endorsing the City's Grant Application for the Arches Storm Drain Dry Weather Diversion Project [100 -2015] Adopt Resolution No. 2015 -21, AResolution of the City Council of the City of Newport Beach Authorizing Entering into an Agreement with the State of California and Designating a Representative to Sign the agreement, and any Amendments Thereto for the Arches Storm Drain Dry- Weather Diversion Project, and endorsing the submittal of the City's grant application to the SWRCB for Arches Dry - Weather Diversion Project. 7. Summary Vacation of Existing Sewer Easement and Request to Install Private Improvements within the Public Right -of -Way at 3235 Ocean Boulevard (C -6061) [381100 -2015] a) Adopt Resolution No. 2015 -18, A Resolution of the City Council of the City of Newport Beach Ordering the Summary Vacation of an Existing 4 -Foot Wide Sewer Easement at 3235 Ocean Boulevard (Lot 16 and Southeasterly Half of Lot 15 of Tract 1026); and Directing the City Clerk to Record Same with the County Recorder's Office, and ordering the summary vacation of a sewer easement at 3235 Ocean Boulevard; b) Direct staff to process the summary vacation of said easement; c) Direct the City Clerk to have the Resolution and summary vacation documents recorded by the Orange County Recorder; d) Waive Council Policy L -6, Private Encroachments in Public Rights -of -Way, to allow a decorative driveway with concrete retaining walls, a 24 -inch wide concrete V -ditch swale behind said concrete retaining walls, a concrete stairway with retaining walls and wrought iron guard rails to a maximum height of 42- inches above stairway grade, a 14 -inch wide by 24 -inch deep by 48 -inch high plastered block mailbox, private Volume 62 - Page 241 City of Newport Beach Study Session and Regular Meeting March 24, 2015 landscaping and irrigation improvements and appurtenances that encroach in excess of 1 -Foot into the Ocean Boulevard right -of -way, contingent upon all conditions of the Encroachment Permit process being met; and e) Direct staff to enter into an Encroachment Agreement with the Owners, and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. D. CONTRACTS AND AGREEMENTS 8. Residential Street Overlay Program - Notice of Completion and Acceptance of Contract No. 5523 (CAP14 -0013) [3&(100-20151 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion for the project; b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) Release the Faithful Performance Bond one year after acceptance by the City Council. 9. Corona del Mar Pocket Park - Award of Contract No. 6042 (CAP14 -0026) [38/100- 20151 a) Approve the project plans and specifications; b) Award Contract No. 6042 to Clean Cut Landscape for the total bid amount of $78,670.10, and authorize the Mayor and City Clerk to execute the contract; c) Establish a contingency of $12,000 (approximately 15% of Total Bid) to cover the cost of unforeseen work not included in the original contract; and d) Approve Budget Amendment No. 15BA -040 transferring /reappropriating project savings in the amounts of $20,600 from 7012- C2502006 and $4,400 from 7015 - C1002044 to Account No. 7015- C4002011 to cover a portion of the construction cost, geotechnical and material testing services, construction contingency and incidentals. 10. Newport Boulevard Water Transmission Main Replacement - Approval of Amendment No. 3 with Tetra Tech, Inc. - C -5546 (CAP14 -0030) [381100 -20151 Approve Amendment No. 3 with Tetra Tech, Inc. for additional final engineering services for the Newport Boulevard Water Transmission Main Replacement project at a not -to- exceed price of $50,500, and authorize the Mayor and City Clerk to execute Amendment No. 3. 11. Final Tract Map No. 17763 for Residential and Commercial Development located at 4311 Jamboree Road (C -6072) [38/TT177631100 -20151 a) Review and approve Final Tract Map No. 17763 located at 4311 Jamboree Road pursuant to Section 19.60.010 of the Municipal Code; b) Review and approve the Subdivision Agreement for Final Tract No. 17763 pursuant to Section 19.36.010 of the Municipal Code, and authorize the City Manager and City Clerk to execute the Subdivision Agreement; and c) Review and approve the required construction securities for Final Tract Map No. 17763 pursuant to Section 19.36.030 of the Municipal Code and authorize the Public Works Director to execute and release securities. 12. Final Tract Map No. 17194 for 24 -Unit Residential Condominium Development located at 5515 River Avenue (C -6073) [38/TT171941100 -20151 a) Review and approve Final Tract Map No. 17194 located at 5515 River Avenue pursuant to Section 19.60.010 of the Municipal Code; Volume 62 - Page 242 City of Newport Beach Study Session and Regular Meeting March 24, 2015 b) Review and approve the Subdivision Agreement for Final Tract No. 17194 pursuant to Section 19.36.010 of the Municipal Code, and authorize the City Manager and City Clerk to execute the Subdivision Agreement; and c) Review and approve the required construction securities for Final Tract No. 17194 pursuant to Section 19.36.030 of the Municipal Code, and authorize the Public Works Director to execute and release securities. E. MISCELLANEOUS 13. Planning Commission Agenda for the March 19, 2015 Meeting [100 -2015] Receive and file. 14. Budget Amendment to Accept a Check in the Amount of $19,988 from the California State Library for Literacy Services (CLLS) and Appropriate Funds to the Library's Fiscal Year 2014/2015 Maintenance and Operation Budget [100 -2015] Approve Budget Amendment No. 15BA -038 to increase revenue estimates by $19,988 in account 4010 -4832 (California Literacy Campaign) and to increase expenditure estimates by the same amount in Division 4060 (Literacy Services). 15. General Plan Annual Status Report Including HousingUlement Report (PA2007- 195) [100 -2015] v 1W a) Review and comment and; b) Authorize submittal to the Governor's Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD). 16. Initiate Minor Amendments to the Zoning Code [100 -2015] a) Find this action is exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15262 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; and b) Initiate an amendment to Title 20 to correct Zoning Code errors and omissions relating to bulkhead setbacks, vehicle /equipment sales in the Commercial General Zoning District, encroachments in setbacks abutting alleys, projection of architectural features and subterranean structural supports into required setbacks, and off - street parking requirements for food service uses and single -unit dwellings with less than 4,000 square feet of floor area. Motion by Mayor Pro Tern Dixon, seconded by Council Member Peotter, to approve the Consent Calendar. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Petros XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR — None XVII. PUBLIC COMMENTS ON NON - AGENDA ITEMS Marianne Zippi referenced a letter she sent to Council and discussed parking permits on the Peninsula. She took issue that the City released statistics which give the perception that parking permits are approved by a majority of affected residents. She questioned the survey process and believed that the City, not residents, want the program. She asked that Council carefully consider this matter. Volume 62 - Page 243 City of Newport Beach Study Session and Regular Meeting March 24, 2015 Michael Glenn agreed with Ms. Zippi, believing that the process has been flawed from the beginning. Additionally, he commented on the City Hall audit and encouraged Council to hire an outside audit firm. XVIH. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Mayor Pro Tem Dixon commented on a recent Water Quality /Coastal Tidelands Committee meeting and Balboa Village Advisory Committee (BVAC) meeting she attended. Council Member Curry reported that, as a member of the Orange County Sanitation District (OCSD) Board, he had the opportunity to go out on the research vessel used to monitor the ocean outflow. He added that most of the sewage is treated, a lot is pumped back into the ground water system, and, when it is not, it is piped out 4'/2 miles off the coast and monitored after it has been treated. He also addressed the sampling process. He noted that three mylar balloons were picked up out of the water and stressed the importance of everyon &,;taking the responsibility to keep the ocean clean. Mayor Selich announced that the General Plan/Local Coastal Program Implementation Committee will meet on March 26, 2015, at 4:30 p.m. in the NewportC ast;Conf�r�ncc Room at City Hall. XIX. CURRENT BUSINESS � 17. Newport Boulevard and 32nd Street Modification - Approval of Revised Parking Lot Concept Plan (CAP12 -0009) [100 -2015] Public Works Director Webb utilized a PowerPoint presentation, addressing the background and details of the proposal. Jenny Frank thanked Mayor Pro Tem Dixon and staff for their consideration and reported that the immediate neighborhood is very happy with the revised plan. George Schroeder thanked City staff for the revised plan and spoke in support of Plan B. Mayor Pro Tem Dixon thanked staff and commented positively on the results. Motion by Mayor Pro Tem Dixon, seconded by Council Member Curry, to approve the revised parking lot concept plan that will be constructed on the northwest corner on Newport Boulevard and 32nd Street. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Petros 18. Balboa Village Fagade Improvement Program Funding [100 -2015] City Manager Kiff asked to continue this matter to the next regularly - scheduled Council meeting. Mayor Selich opened public comments. Mayor Selich closed public comments. Volume 62 - Page 244 City of Newport Beach Study Session and Regular Meeting March 24, 2015 Motion by Council Member Curry, seconded by Council Member Peotter, to continue the item to the April 14, 2015 City Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tom Dixon, Mayor Selich Absent: Council Member Petros 19. Corona del Mar Fire Station No. 5 and Library Replacement - Approval of Professional Services Agreement with WLC Architects (C -6074) (CAP14 -0001) [38/100- 2015] Deputy Public Works Director Vukojevic provided a PowerPoint presentation to address the project location, existing conditions, the selection process, conceptual plans, parking, and the community outreach meeting schedule. He also explained the design criteria for the Fire Station and the Library. Public Works Director Webb emphasized that there is a concept, but nothing has been finalized. Elizabeth Stahr commented on the purpose of the Library to the area and addressed some of its programs and uses. She expressed concerns that the new Library will not be as big as the existing library and commented positively on staffs efforts. She urged that the Library be carefully built and thought through. Jim Mosher questioned whether this is the best location to serve the largest part of the City's population, why the public and Council are not seeing the creative ideas proposed by the nine RFP respondents, and whether a major facilities master plan exists. He discussed the length of the contract and the proposal to close the old library while the new one is being built. Wendy Salter expressed concern with the proposed size reduction of the new Library and hoped that there will be opportunities for community input and asked whether the giant Rex Brandt mural could be displayed. Carl Cassidy reported that there has been a lot of work done by staff and that the Board of Library Trustees have also looked at this. He expressed the opinion that he would like to see the Library tripled in size. He urged Council to move the matter along and commented on library space at the OASIS Senior Center. Motion by Council Member Curry, seconded by Council Member Peotter, to approve a Professional Services Agreement (PSA) with WLC Architects of Rancho Cucamonga, California, for Corona del Mar Fire Station No. 5 and Library Replacement Project at a not -to- exceed price of $457,750.00, and authorize the Mayor and City Clerk to execute the Agreement. Council Member Curry expressed concerns about the use of space that is open to the public and encouraged thinking about technology and creating the best space possible for the young people who use the Library. Mayor Pro Tern Dixon wondered regarding the architect's expertise with libraries and library - related technology, since the focus seems to be on the Fire Station. Council Member Muldoon expressed concerns regarding a shared lobby between the Library and Fire Station. Volume 62 - Page 245 City of Newport Beach Study Session and Regular Meeting March 24, 2015 Council Member Peotter commented positively on the design and keeping the Library a flexible space. He agreed with Council Member Curry regarding ensuring appropriate technology, congratulated staff, and encouraged moving forward with the project. Mayor Selich pointed out that the City has not determined the final square footage and function of the library. Deputy Public Works Director Vukojevic stated that, when staff meets with the Board of Library Trustees, staff will consider the functionality of the space they need. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Petros 20. Lease Agreement between the City of Newport Beach and Lighthouse Cafe, LLC, Authorizing the Lease of Restaurant Space at the Marina Park Project Located at 1600 West Balboa Boulevard (C -6075) [381100 -20151 Community Development Director Brandt noted that the City Council was provided with a staff report and offered to respond to questions from Council. Motion by Council Member Curry, seconded by Mayor Pro Tem Dixon, to a) find that the execution of the Lease Agreement is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines; and b) approve and authorize the Mayor and City Clerk to execute a 15 -year Lease Agreement with Lighthouse Cafe, LLC. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Petros 21. Update to Newport Beach Municipal Code Section 5.04 — Business Licenses and Regulations, General Provisions [100 -20151 Deputy Finance Director Montano provided a staff report addressing the proposed amendments to the Newport Beach Municipal Code (NBMC). He provided background information and discussed prior revisions, proposed changes, consideration by Council at a previous Study Session, and changes that would bring the NBMC into compliance with State law. Jim Mosher discussed distinctions between taxes and fees, and consideration of the matter in 1906. He addressed the original ordinance, commented on the lack of substance relative to the change regarding real estate agents, and commented on exceptions for Veterans. George Schroeder commented on the last Council's consideration and direction regarding this matter, and urged Council to approve staffs recommendation. Council Member Muldoon asked whether the proposed is a tax or a fee, and Deputy Finance Director Montano reported that it is a tax and addressed the previous Council's direction to staff. Council Member Muldoon believed that this is poorly written legislation and expressed Volume 62 - Page 246 City of Newport Beach Study Session and Regular Meeting March 24, 2015 concerns that failure to have a license can subject someone to a misdemeanor. He indicated that, for this reason, he cannot support the recommendation. Council Member Peotter agreed with Council Member Muldoon's comments and expressed concerns regarding the right to access the business and the right of entry. He suggested eliminating the tax altogether or evaluating whether it should be a fixed fee, and referring the matter to the Finance Committee. Motion by Council Member Curry, seconded by Mayor Selich, to a) introduce Ordinance No. 2015 -6, An Ordinance of the City Council of the City of Newport Beach Amending Newport Beach Municipal Code Chapter 5.04 to Update Business License Provisions, and pass to second reading on April 14, 2015; and b) adopt Resolution No. 2015 -23, A Resolution of the City Council of the City of Newport Beach to Reduce the Business License Tax Charged to Out -of- Town Licensed Contractors to be Equal to that of In -Town Licensed Contractors. Council Member Curry noted that the change reflects a change requested by the real estate industry, the City's business license tax laws should be cleaned up, and the matter should be codified and moved forward. He pointed out that cutting $4 million out of the budget is financially irresponsible and suggested this be looked at methodically. He agreed that the Finance Committee should look at all of the City's revenues to ensure that they are appropriately set. He emphasized that business license taxes in every city play an important role in ensuring that every business is a legitimate business and noted that, other than the real estate and the LLC issues, there have been no complaints about the business license structure in Newport Beach. Council Member Duffield noted that he has a business license and asked whether he can vote on this matter. City Attorney Harp reported that Council Member Duffield can vote on this matter due to the public general exception as it impacts all businesses in the City. Substitute motion by Council Member Peotter, seconded by Council Member Muldoon to refer the matter to the Finance Committee. Council Member Muldoon explained why he could not support the original motion. He added that, although he opposes the wording regarding a misdemeanor, he does not oppose what has been done administratively. Mayor Pro Tern Dixon suggested removing the language relative to a violation being a misdemeanor in order to move forward with the matter. City Attorney Harp affirmed that the Ordinance can be modified to not make violations of the provisions a criminal conduct. He added that the right of entry can also be revised. Business License Supervisor Navarrete reported that the license must be posted in a conspicuous location inside of a commercial business, but the Code was amended to indicate that a private residence would not be entered into without a court order. City Attorney Harp suggested addressing the right of entry by amending the language to specify that this can only be done during the hours the business is open to the public. Council Member Muldoon agreed with City Attorney Harp's suggestions. City Attorney Harp indicated that the proposed modifications would be to change that a violation is non - criminal conduct and to change the right of entry language. Volume 62 - Page 247 City of Newport Beach Study Session and Regular Meeting March 24, 2015 Council Member Curry stated that he does not object to the suggestions and stated that he agrees to incorporate the modified language into his motion. Mayor Selich, as the seconder, agreed to the proposed amendments. He stated that he will not be supporting the substitute motion. Council Member Peotter stated that he has no problem with changing it to a $50 flat fee instead of a tax in order for the City to maintain a database of businesses in the City. He indicated that he also supports returning tax money to those who paid it when there is a surplus. Council Member Curry took issue with the recommendation and pointed out that State law and Proposition 218 calls this a tax. Council Member Muldoon expressed support for Council Member Peotter's substitute motion. The substitute motion failed by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Muldoon Noes: Council Member Curry, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Petros Council Member Curry restated his amended motion as follows: Amended motion by Council Member Curry, seconded by Mayor Selich, to a) introduce Ordinance No. 2015 -6, An Ordinance of the City Council of the City of Newport Beach Amending Newport Beach Municipal Code Chapter 5.04 to Update Business License Provisions, and pass to second reading on April 14, 2015; and b) adopt Resolution No. 2015 -23, A Resolution of the City Council of the City of Newport Beach to Reduce the Business License Tax Charged to Out- of-Town Licensed Contractors to be Equal to that of In -Town Licensed Contractors, as amended relative to changing a business license tax violation from a misdemeanor to non - criminal conduct and only allowing entrance into businesses during regular public hours. City Attorney Harp proposed adding to Section 5.04.290, changing the right to enter "at any reasonable time" to "during regular public business hours" and adding a provision that violations shall not be considered criminal conduct. In response to Council Member Muldoon's question, City Attorney Harp clarified that the amendment excludes a group from paying the tax, so this is technically a tax reduction. Substitute motion by Council Member Peotter, seconded by Council Member Muldoon, to reduce the cost to $50 per business and call it a fee, not a tax. City Attorney Harp reported that what is being proposed in the substitute motion cannot be done as the City would need to do a study in order to determine costs associated with running a program. Council Member Peotter withdrew his substitute motion and provided the following substitute motion: Substitute motion by Council Member Peotter, seconded by Council Member Muldoon, to charge a fee commensurate with the program costs, to be approved at a later date. Volume 62 - Page 248 City of Newport Beach Study Session and Regular Meeting March 24, 2015 Council Member Curry took issue with the substitute motion since it will reduce the City's budget by $4 million and believed this approach is irresponsible. Council Member Muldoon stated that Newport Beach is a very wealthy City and that it is reasonable to believe in less taxes and fees, and expressed the opinion that the substitute motion would not hurt the City in any way. He believed that businesses are currently over- taxed. The substitute motion failed by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Muldoon Noes: Council Member Curry, Mayor Pro Tem Dixon, Mayor Selich Absent: Council Member Petros Council Member Curry reiterated his amended motion as follows: Amended Motion by Council Member Curry, seconded by Mayor Selich, to a) introduce Ordinance No. 2015 -6, An Ordinance of the City Council of the City of Newport Beach Amending Newport Beach Municipal Code Chapter 5.04 to Update Business License Provisions, and pass to second reading on April 14, 2015; and b) adopt Resolution No. 2015 -23, A Resolution of the City Council of the City of Newport Beach to Reduce the Business License Tax Charged to Out - of -Town Licensed Contractors to be Equal to that of In -Town Licensed Contractors, as amended to change the right to enter to during regular public business hours and changing a provision so violations shall not be considered criminal conduct. The amended motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Noes: Council Member Peotter Absent: Council Member Petros Motion by Council Member Peotter, seconded by Council Member Muldoon, to refer the concept of the business license tax structure to the Finance Committee for review. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Noes: Council Member Curry Absent: Council Member Petros 22. Council Policy A -6; Creation of a Debt Management Fund [100 -2015] Council Member Peotter proposed the creation of a debt management fund to allow the City to pay back Ca1PERS (unfunded pension liabilities) and Civic Center bonds. He commented on the possibility of offering to buy Certificates of Participation (COP) bonds at par or better. He requested that the matter be agendized for a future meeting Council Member Curry noted that this matter previously included a request to sell the old City Hall site. He commented on the proposal to reduce the Civic Center debt, referenced an analysis from independent financial advisors, and addressed the City's annual debt payment. Per the advisor's conclusions, he reported that it would cost the City $151.8 million to redeem $106.5 million of debt related to the Civic Center. He added that the total cost of the proposal would be Volume 62 - Page 249 City of Newport Beach Study Session and Regular Meeting March 24, 2015 $276 million over 25 years and the net additional cost to the City would be $21 million. He addressed additional conclusions by the financial advisors and stated that the total cost of this idea would burden the City by an additional $7.2 million. He reported that everyone knew that costs would exceed the benefit and believed that this would be financially irresponsible. Council Member Curry detailed significant problems with the proposed transactions, as well as the negative consequences of approving this proposal. Additionally, he detailed problems with the proposal to refund the City's bonds. Carl Cassidy suggested referring this matter to the Finance Committee. He agreed with Council Member Curry's analysis and noted that this is a concept of leverage that requires specific technical knowledge. Council Member Muldoon suggested bringing back this matter in order to find other options. Motion by Council Member Curry, seconded by Mayor Pro Tom Dixon, to not bring the debt management fund proposal back at a future meeting. The motion failed by the following roll call vote: Ayes: Council Member Curry, Mayor Pro Tom Dixon, Mayor Selich Noes: Council Member Peotter, Council Member Duffield, Council Member Muldoon Absent: Council Member Petros Motion by Council Member Peotter to refer the debt management fund proposal to the Finance Committee. Owl& City Attorney Harp stated that this does not fall squarely with what is on the agenda and suggested changing the motion to bring the matter back for a larger discussion of the item. Council Member Peotter withdrew his motion. Motion by Council Member Peotter, seconded by Council Member Muldoon, to place a discussion item on a future Council agenda relative to forming a debt management fund. The motion failed by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Muldoon Noes: Council Member Curry, Mayor Pro Tern Dixon, Mayor Selich Absent: Council Member Petros Mayor Selich noted the net result is no action at this time XX. MOTION FOR RECONSIDERATION — None XX. ADJOURNMENT — 8:44 p.m. Volume 62 - Page 250 City of Newport Beach Study Session and Regular Meeting March 24, 2015 The agenda for the Regular Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on March 19, 2015, at 4:00 p.m. City Clerk Recording Secretary Mayor 40 NIk, Volume 62 - Page 251 CITY OF NEWPORT BEACH City Council Minutes Special Meeting /Joint Meeting of the City Council and Finance Committee March 24, 2015 I. ROLL CALL - 3:30 p.m. Present: Finance Committee Member Dixon, Finance Committee Member Tucker, Finance Committee Member Warner, Finance Committee Chair Curry Present: Council Member Peotter, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich Absent: Council Member /Finance Committee Member Petros (excused), Finance Committee Member McCullough (excused), Finance Committee Member Wu (excused) II. CURRENT BUSINESS 1. "Early Look" at the Capital Improvement Program (CIP) (Part 2) [100 -2015] Public Works Director Webb provided a PowerPoint presentation, addressing the background and funding. In reply to Mayor Selich's questions, Public Works Director Webb explained the proposed funding amount for Neighborhood Enhancement District A, noting that nothing has been programmed into the budget yet. He addressed suggestions to possibly reduce funding or defer project costs, and recommendations for the Balboa Island Seawall Rehabilitation and the Corona del Mar Fire Station and Branch Library Replacement. Fire Chief Poster reported conducting research on the fire station location placement and indicated that other sites were considered, but they would directly impact the Fire Department's response times in the area. He commented on the long -range solution for the service hole in Newport Coast and believed that there is not another Fire Station included in the Facilities Financial Planning (FFP). Public Works Director Webb discussed suggestions to possibly reduce funding or defer project costs, and recommendations for the Lido Fire Station Replacement. City Manager Kiff noted that the proposed move for the Lido Fire Station will be near its current location. Chief Poster addressed the usage and demand for the Lido Fire Station, and noted that it is the busiest fire station in the City. Public Works Director Webb further discussed suggestions to possibly reduce funding or defer project costs, and recommendations for the Superior Avenue and Pacific Coast Highway Pedestrian /Cyclist Over - Crossings. Finance Committee Member Tucker asked whether staff would still consider a bridge over Superior Avenue if there were a parking lot at Sunset Ridge Park. Public Works Director Webb indicated that it would play into a long -term route and increases safety in the area. Public Works Director Webb addressed the Balboa Village Citizens Advisory Panel Improvements and the Big Canyon Water Quality Improvements and Habitat Restoration Project, reporting that there is approximately $3 million programmed in this year's budget for the Big Canyon project, but there is a shortfall of approximately $10 million. He added that there are a lot of habitat issues that need to be dealt with. He noted that the boundaries shown in the presentation represent the Big Canyon Watershed. Volume 62 - Page 252 City of Newport Beach Special Meeting /Joint Meeting of the City Council and Finance Committee March 24, 2015 Council Member Curry reported that he lives within the watershed, but not near the project area. City Attorney Harp advised that he does not have a conflict of interest. Public Works Director Webb explained that the City received a grant from the Orange County Transportation Authority (OCTA) to address roadway runoff, as well as a settlement that must be used in the area, and an estimate from the Irvine Ranch Conservancy (IRC) to do additional habitat restoration. He provided details regarding the $1.4 million received in the settlement. City Manager Kiff noted that the $10 million represents the end product, including all restoration and potential trail improvements. He stated that details will be presented to Council in the future. He also added that the habitat restoration is always optional and suggested that it be prioritized only when funding becomes available. He emphasized that the water quality portion of the project is mandated and that the $3 million covers most of the water quality component. In response to Mayor Pro Tem Dixon's question, Public Works Director Webb confirmed that grant funding has been received for the water quality portion of the project and clarified that the remaining funds would be used to conduct downstream habitat restoration. He noted that the City could have other organizations do the habitat restoration part of the project. Council Member Duffield requested and received confirmation from Public Works Director Webb that this area is in a 100 -year flood plain and noted that natural habitat will grow back, but there are currently a lot of invasive plants that need to be removed. Public Works Director Webb addressed the Corona del Mar Entryway Improvements Project and confirmed that the project would impact parking on MacArthur Boulevard. He noted that the project would remove eight parking spaces on Pacific Coast Highway, but will replace them elsewhere. Regarding the Semeniuk Slough Dredging project, Public Works Director Webb addressed the dredging technique and possible locations to move the dredged material. Regarding the West Coast Highway Landscape Rehabilitation Project, Deputy Public Works Director Vukojevic provided a status update on the design plans, noting that the project may be ready to go out to bid this summer. Public Works Director Webb addressed the West Newport Community Center. Recreation and Senior Services Director Detweiler addressed programming and amenities for the new center. Recreation and Senior Services Director Detweiler also discussed challenges relative to permanently eliminating existing tennis courts and converting them to pickleball courts and discussed staff's considerations. She confirmed that staff is looking into installing some on the west side of the City. Finance Committee Member Warner noted that the Big Canyon Country Club has courts that can be used for both tennis and pickleball. In response to Finance Committee Member Warner's questions, Recreation and Senior Services Director Detweiler discussed the gymnasium near the West Newport Community Center. Finance Committee Member Warner suggested building two gymnasiums rather than a swimming pool. Discussion ensued regarding possibilities for the existing West Newport Community Center and options for reducing the scope of the project. Recreation and Senior Services Director Detweiler noted that pools are very important to the community. Volume 62 - Page 253 City of Newport Beach Special Meeting /Joint Meeting of the City Council and Finance Committee March 24, 2015 Discussion continued regarding the lease agreement with the private school, options to sell, the sale proceeds going towards construction costs, whether there is an estimate of what the property is worth, and trying to get a better utilization of the Utilities Yard in order to keep surface parking. In response to Council Member Duffield's question, City Manager Kiff stated that, if everything is removed from the Utilities Yard site, except for the water treatment and reservoir, housing could be developed and leased at that location. However, staff would need to determine if there are any deed restrictions on the property. Finance Committee Member Warner asked regarding an estimate of the additional overhead to operate the facility. City Manager Kiff reported that the City currently is in a net profit position in terms of the lease to the private school. Recreation and Senior Services Director Detweiler added that many of the City facilities have a 40 -50% cost recovery. Finance Committee Member Tucker believed that it would be a good idea to design the facility so that it can be added to later and can be easily expanded. Council Member Curry noted that West Newport needs good facilities and stated that it needs to be done correctly, usable, and something that the City can be proud o£. Council Member Peotter asked regarding only allowing Newport Beach residents use of the community center. Recreation and Senior Services Director Detweiler indicated that doing so would be a Council decision, but that no other City facility has that restriction. She noted that the City normally charges a higher non - resident rate for City programs. Mayor Selich noted that the City of San Marino tried to have resident -only parks, but the attempt backfired. In response to City Manager Ki£fs question, Mayor Pro Tem Dixon discussed the possibility of having a mutual benefit agreement with the City of Costa Mesa for the Banning Ranch Project. Public Works Director Webb reported on the project's next steps and noted that it still needs to be submitted to the Coastal Commission for approval. Regarding the Balboa Boulevard Landscape Improvements Project, Mayor Pro Tem Dixon pointed out the importance of this project, but supports deferring it for two or three years. Public Works Director Webb addressed the Balboa Village Fine Arts Center and expressed concerns that the whole City is not in support of the project. Council Member Muldoon asked regarding the fair market value of the property and City Manager Kiff stated that staff has not been instructed to conduct an appraisal. Discussion followed regarding the price paid for the property and its zoning. Mayor Pro Tem Dixon stated that she supports a continued community use of the property, but also a free market in helping to make the decision about selling the property. She expressed support for putting the property on the market, but to creatively analyze its sale by assigning points if a buyer proposes community- supported uses. In response to Council Member Duffield's questions, Public Works Director Webb reported that the property is approximately 6,000 square feet and backs up to a small alley with a hotel on the other side of the alley. Volume 62 - Page 254 City of Newport Beach Special Meeting /Joint Meeting of the City Council and Finance Committee March 24, 2015 Public Works Director Webb addressed the Corona del Mar Traffic By -Pass Project, consolidation of City Corporate Yards, and development of a future dog park. Regarding a future dog park, discussion ensued regarding the cost, the reason for the high cost, other potential locations, and parking. Mayor Selich believed that $1.6 million for a dog park is a misnomer since the project involves other amenities. He added that the cost just for the dog park should be calculated. Regarding the Lower Castaways Park Project, Council Member Muldoon asked whether the concept includes a paved parking lot and stated that he would like to see something that conforms more to the natural environment, such as gravel or dirt. Council Member Duffield commented on the property being a Marine Protected Area (MPA), but suggested allowing small crafts to be launched and retrieved under the bridge. He suggested looking at inexpensive ways to improve the property so it can be used sooner than later. Public Works Director Webb addressed the Newport Pier Building Rehabilitation and commented on a preliminary Request for Proposal (RFP). Mayor Pro Tern Dixon noted that the Pier needs rehabilitation, the highest priority is to keep the area clean, and added that she would like to see something there that would produce revenue for the City. In response to Council Member Peotter's questions, Public Works Director Webb commented on the possibility of having a tenant build a shell, do tenant improvements, and having a revenue - sharing lease rather than a fixed lease. Additionally, he provided an estimate for repairing the Pier. Mayor Selich reported that a Coastal Development Permit (CDP) would be needed to demolish the building and suggested going before the Coastal Commission with a plan that includes both the demolishing of the existing building and the building of the new one. Brief discussion followed regarding proposals received so far and ensuring that the pilings and structure are stable. Public Works Director Webb addressed Newport Boulevard Landscaping. Mayor Pro Tem Dixon suggested pushing the project several more years. City Manager Kiff presented a list of projects that will be moved forward but for which grants will be sought, projects that will be done as soon as funds become available, and projects for which staff recommends no further pursuit. In response to Mayor Pro Tern Dixon's question, City Manager Kiff noted that, with the elimination of the Fine Arts Center, the City may pursue some projects in the FFP earlier. He believed that the biggest benefit would be, if the property is sold, the money could be used towards one of the projects that has yet to be funded. Mike Johnson expressed concerns regarding accidents and injuries occurring at the intersection of Superior Avenue and Coast Highway, and commented regarding prioritizing parking for Sunset Ridge Park. Ralph Rodheim stated that one pool at the West Newport Community Center is not adequate and that pools in the City are used early in the morning and late at night. Regarding Balboa Village, he stated that Council has an opportunity to take the lead and suggested that Council consider parking, a shuttle system, and the fate of the Balboa Theater. He suggested keeping Volume 62 - Page 255 City of Newport Beach Special Meeting /Joint Meeting of the City Council and Finance Committee March 24, 2015 some of the money in Balboa Village. Additionally, he recommended that the City consider installing a plaque or some sort of recognition for all the residents who supported the Balboa Theater. Bernie Svalstad Corona del Mar BID provided a background regarding the Corona del Mar Entryway Project. He asked that the City come up with $400,000 for the project, and believed it was unfair to ask the Corona del Mar BID to contribute 50 %. He urged the City to complete the project this year. W. R. Dildine believed that the Balboa Village area is going downhill, even though businesses are trying to improve the area. He expressed support for the City selling the Theater. Kennie Jo Rizzo addressed the need for better parking in the West Newport area and commented positively on the plans for a new Community Center. She suggested building two pools and getting help with fundraising from people and organizations that would use the pools. She pointed out that this community is built around water. She expressed hope that the City will consider selling the Theater property. Jim Mosher believed that it would have been more helpful to provide a report about how the budget approval process works. He commented on the role of the Finance Committee and the requirement for them to provide a written recommendation relative to the budget. Additionally, he stated that he was unable to find the Gas Tax Fund in the document and wondered about the 'Proposed Amount" column. He discussed the Semeniuk Slough and suggested collecting data to inform residents regarding decisions about Public Works projects. Gina Lesley discussed the Newport Shores Swim Team and expressed the need for a City pool. She addressed the Semeniuk Slough, noting that it was promised more than 10 years ago, that Hoag Hospital had provided $400,000 for the project, and that the U.S. Army Corps of Engineers already did their part on the project. She indicated that she is upset that the City may not do it. Additionally, she addressed the West Newport Landscaping Project and pointed out that the area is an entry to the City. Council Member Curry commented on the need to give direction. City Manager Kiff noted that the matter will be presented to Council during a regular evening session. Council Member Peotter reported that the next Finance Committee meeting is scheduled for April 16, 2015, and suggested having them meet on April 2, 2015 to review the FFP only and develop recommendations to present to Council at the April 14, 2015, City Council meeting. III. PUBLIC COMMENTS ON NON - AGENDA ITEMS - None IV. ADJOURNMENT - 5:20 p.m. Volume 62 - Page 256 City of Newport Beach Special Meeting /Joint Meeting of the City Council and Finance Committee March 24, 2015 The agenda for the Adjourned Special Meeting (Joint Meeting with the Finance Committee) was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on March 19, 2015, at 4:00 p.m. City Clerk Recording Secretary Mayor 40 Nk. Volume 62 - Page 257