HomeMy WebLinkAbout0 - Closed Session AgendaCITY OF NEWPORT BEACH — OFFICE OF THE CITY ATTORNEY
CLOSED SESSION AGENDA
TOPIC WILL BE DISCUSSED IF UNDERLINED AND BOLDED
CS-1 CONFERENCE WITH LEGAL COUNSEL REGARDING LITIGATION — 54956.9
JANUARY 8, 2008
Immediately After Study Session
Council Conference Room
Name and number of case(s) Harvev vs. City of Newport Beach OCSC Case No. 07CCOM
CS-2 CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATIONISIGNIFICANT EXPOSURE TO LITIGATION 54956.9(YA
a. Number of cases involving facts and circumstances that might result in litigation but which are believed not yet known to any potential Plaintiff:
b. Facts and circumstances of an accident, disaster, incident or occurrence that might result in litigation and which are known to any polential Plaintiff.
(Identify fads on agenda or dosed session announcement):
C. Claims or written communication threatening litigation):
d. Statement made by person in open meeting threatening litigation (specify name and date):
CONFERENCE WITH LEGAL COUNSEL - DECISION WHETHER TO INITIATE LITIGATION § 54956.9(C)
a. Number of cases unspecified because disclosure would jeopardize service of process:
b. Number of cases unspecified because disclosure would jeopardize erdsting settlement negotiations:
CONFERENCE WITH REAL PROPERTY NEGOTIATOR- 54956.8
Specify street address and/or the parcel number or other unique reference of the real property under negotiation:
Negotiating Parties:
Under negotiation: .
CONFERENCE WITH LABOR NEGOTIATOR —MEET 8 CONFER
Agency negobatorname(s):... .... .
Employee Organization:
CONFERENCE WITH LABOR NEGOTIATOR— UNREPRESENTED EMPLOYEES SPECIFY POSITION, TITLE OR EMPLOYEE WHO IS THE
SUBJECT OF THE NEGOTIATIONS
Agency negotiator.
Unrepresented employee:
CONSIDERATION OF PUBLIC EMPLOYEE APPOINTMENT
C" PUBLIC EMPLOYEE PERFORMANCE EVALUATION • City Clerk
Fi userslca6shuwWmedSessionO ,Qmda06Van98.doc
Published Tuesday, OecessbW 11. 2DD7191 PM. PST
PoliDcs
Citizens reject rehab plan
Activists threaten sult if Newport doesn't do more to clamp down on group homes. Operator vows to fight
proposed rules.
By Brianna Bailey
Balboa Peninsula residents and rehabilitation home operators said they are unhappy with a proposed ordinance to
curb the spread of rehab facilities in Newport Beach.
AMi•rehab home activists said they will fide a multi-miftion dollar lawsuit against the city if Newport Beach doesn't do
more to clamp down on houses where they say recovering addicts cause problems with noise, trash and traffic on
the peninsula.
And the city's largest rehab home operator said it will fight new rules it said are "discriminatory."
"We're trying to walk a fine line between protecting the residential character of the neighborhoods and discriminating
against people the law deems handicapped; Mayor Steve Rosansky said.
Newport Beach City Council and residents will discuss the ordinance at a study session at 4 p.m. today. The
proposed new rules would wipe out changes the City Council made to rules in 2004 that rehab home activists say
caused a proliferation of homes in the city. The 2004 rules made it possible for some rehabilitation homes to open in
Newport Beach without a use permit, because the city categorized recovering addicts as disabled.
"They aren't going as far as they Treed to go to resolve the problem, said Denys Oberman, a member of Concerned
Citizens of Newport Beach. The group has lobbied hard for stricter rules on rehabilitation homes in Newport Beach,
and spent about $150,000 on attorneys and planning consultants to pressure the city into doing more, Oberman
said.
Residents would like to see a bigger buffer zone between rehab homes than what the new rules propose, Oberman
said. Although the new rules would require rehab homes to obtain use permits, Oberman said it's not enough to curb
what residents feel is an over-concentration of homes on the peninsula.
"That's what they were supposed to do in 2008 or 2004 but now R's not enough. We feel encouraged, but we're not
there yet and the city needs to get there soon," Oberman said. "The city needs to align with the interests of its
constituents."
The proposed new rules discriminate against recovering addicts and rehabilitation facilities, said John Peloquin, vice
president of operations for CRC Health Group, which owns Sober Living by the Sea. The rehabilitation center is the
largest in Newport Beach and houses about 85 clients in homes on Balboa Peninsula.
"The ordinance adversely affects us in a discriminatory way." Peloquin said. 'R's discriminatory and we will not
accept that We will defend ourselves."
Peloquin said he didn't believe a new ordinance would ease tensions between rehab operators and residents on the
peninsula. He called for peninsula residents and rehab operators to work toward a solution.
"We need more dialogue to work through these issues. I think the providers can come up with a solution to work with
the city's needs without an ordinance," Peloquin said. "I'm not happy with it, nobody's going to be happy with it.
We're all unhappy about an ordinance and the facts still remain and there's still issues that need to be resolved."
The council is poised to vote on the ordinance in January and a new ordinance could go into effect as early as
February. The proposed rules could be revised to address the concerns of rehab home operators and residents
before the council votes, Rosansky said.
Requires rehab homes obtain conditional use permits
Keeps most new homes from opening except in areas zoned for mufti-family residential use.
http://www.daflypilot.00rn/articles/2007/12/1 I /politics/dpt- rehabhomes l l .prt
12/13/2007
Print Version:: Page 2 of 2
Mandates no secondhand cigarette smoke be detectable outside properties where homes operate.
BRIANNA BAILEY may be reached at (714) 966 -4625 or at
bNanna.balley@latimes.com.
[ CLOSE WINDOW
http:/ /www.dailypilot.com /articles/ 2007 /12/11 /politics/dpt- rehabhomesll.prt 12/13/2007
Jadzon l DeMarcol Tidus
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A LAW CORPORATION 1^'
October 9, 2007 Direct Dial: 949.861.7424 9
Email; mddus acv n om
Reply to: Irvine Office
File No: 6731 A3997
VIA PERSONAL DELIVERY
Ms. LaYonne M. Harkless
City Clerk
City of Newport Beach
330,0 Newport Boulevard
Newport Beach, California 92663
RECEIVED
OCT f 0 2001
CITY ATTORNEY'S OFFICE
CITY OF NEWPORT BEACH
Re: Concerned Citizens of Newport Beach - Demand Letter
Dear Ms. Harkless:
Date i `i L02
Copies Sent To:
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�'(`Auncil Member
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We represent Concerned Citizens of Newport Beach ("Citizens'). Please circulate this
letter to all of the City Councilmembers. This letter is intended to provide the City with notice of
the circumstances giving rise to the Citizens' potential claims against the City. By this letter the
Citizens are demanding that the City immediately: (1) develop, adopt and implement ordinances
that adequately regulate residential care facilities eliminating current and preventing further
over - concentration; (2) enforce current regulations, including the moratorium; and, (3) take
immediate action to implement and enforce the Political Reform Act. In addition, the
Moratorium is set to expire. It has done little to stem the tide of newly established and expanded
existing residential care facilities. We expect that the City will continue the Moratorium because
of the delay in developing sound approaches to regulating residential care facilities. We further
expect that when the City does so, it will enforce the Moratorium, and prohibit all now and
expanding facilities that are further exacerbating over - concentration. It is imperative that the
City and the Councilmembers take immediate steps to address these issues; otherwise, the
Citizens will seek redress of its grievances by other lawful means.
This demand is the direct result of the City's continual, willful refilsal to implement and
enforce the existing Municipal Code requirements regulating residential care facilities, the failure
of City to require its covered employees (mcluding contract employees) to comply with the
disclosure requirements of the Political Reform Act 'the City's failure to implement the General
Plan.: aril ensure the zoning ordinance is consistent with the General Plan, and the failure to .
adopt in a timely manner ordinances amending its Municipal Code that are necessary to protect
public health, safety, and welfare.
We believe that the City's current ordinance and malfeasance in this regard has damaged
the Citizens members by an amount currently estimated to be more than $250 million.
Irvine Offtoe Westlake vi fte Office
2030 Main Street, Suite 1200 2815 Tormsgate Road, Suite 200
Irvine, California 92614 Westlake Wage, California 91361
t 949.752.8585 f 949.752.0597 t 805230.0023 f 805.230.0087
Ms. LaVonne M. Harkless
October 9, 2007
Page 2
This is not a new issue. The City's patent disregard of its own laws and the health and
safety of its citizens has been identified as far back as 2003. The delay and failure to enact
satisfactory ordinances to regulate this use clearly stems from the obstructionist attitude of City
staff who are opposed to any meaningful reform of the City's regulations for residential care
facilities. In fact, the City staff and outside counsel have attempted to limit and misguide policy
discussion by the Planning Commission and City Council on this issue by creating public
documents that allegedly opine on the legality of the necessary reforms. Instead of working on
"how to" bring about necessary change, the City staff has continued to focus on "why not."
We have presented the City with a legal ,sound approach to regulation of residential care
facilities that it should adopt without further delay. The citizens that live nearby these facilities
(who are in the best position to know the extent of regulation necessary) have repeatedly testified
to the public health, safety and welfare impacts they experience. The citizens we represent are
not opposed to legitimate residential care facilities locating in the City and along the coast. They
object to the over - concentration and unregulated propagation of these facilities that are harmful
to both individuals and the community, and the disabled persons they purport to serve. Further
delay by the City will cause additional long -term and potentially irreversible damage and losses
to individual citizens and the community.
By failing to promptly address the Citizens' concerns, the City is exposing itself to
substantial damages.
1.
A. The City Inkntionagy Gutted the Previous Law Causing Harm to ImUvidual
Residents and the Community.
In 2004, despite both substantial evidence of impacts and public protest, the City
knowingly changed its local ordinances to eliminate all regulation of this type of residential care
use. Under the direction of the then City Attorney and Mayor, the City took deliberate action
that enabled the rampant, uncontrolled expansion of the "group home" businesses.
The revised 2004 ordinances were crafted to specifically enable the expansion of these
businesses and uses in the City's dense, coastal neighborhoods in a campus -like form: legal
requirements. for a use permit (CUP) were abolished; licensed and unlicensed group home uses
were permitted in residential zones R1.5 and 112; definitions of "Residential Care- Limited" and
"Residential Care, General" were revised to allow business operators to commingle licensed and
unlicensed uses, and to improperly characterize their operations as "6 or under" subject to certain
rights to which they were not really legally entitled; the City failed to incorporate State of
CahlbmWs definition of " facility" into ordinance definitions and allowed these businesses to
operate without a business license in a manner inconsistent with the City's policy on business
licenses for other businesses (including requiring business licenses for home based businesses).
Ms. I.aVonme M. Ilarkless
October 9, 2007
Page 3
In addition, we have been told that City staff was universally directed NOT to enforce the
City's building or health and safety codes on these uses. In short, the City refused to manage
these particular residential care businesses in the same manner in which it manages other
businesses, including those conducted in residential zones.
By creating an environment of no regulation, the City deliberately created explicit
conditions driving the rampant expansion of existing, and the entrance of new, "residential care
facility" business operators. The operators of "residential care facilities" intentionally design
their business model to exploit the City's "6 and under" loophole, when these operators are
actually operating the facilities as an integrated ,distributed whole facility.
The City's intentional removal of regulation for residential care facilities combined with
.the well known unique characteristics of these small coastal residential neighborhoods, has
resulted in a serious over - concentration of residential care businesses, particularly alcohol and
drug treatment centers. The City has formally and publicly acknowledged that these areas have
been transformed into institutionalized zones. The intensity has caused well documented adverse
impacts to the neighborhoods, the residents, and the disabled These issues include. increased
noise,, subjecting neighbors to continual secondhand cigarette smoke, a known carcinogen,
generation of significantly more trash discarded around the community and private property
including discarded hypodermic needles and cigarette butts, increased unmet parking demand, an
increase in nuisance behavior, overburdening the infrastructure, and exposure to infectious
diseases.
B. The Cffy's Has IntendonatlyRefused to Implement the FA*fIng Ordinances
Causing Harm to Individual Residents and the Communfty.
The City staff has been unwilling to enforce its codes to maintain the integrity of its
residential neighborhoods and special plan districts. As you may know, our firm, as well as
individual citizens, sought a number of public records relating to residential care facilities. Ever
though the City made it difficult to obtain such records, the citizens were eventually able to
prevail. Our review of the records confirms that the City has failed to enforce its permit
requirement use and subsequently enacted federal exception permit provisions, even though it
was legally required to do so under its own regulations. As a result, a number of aggressive,
alcohol and drug treatment center business operators established large facilities within the City's
small, dense coastal residential neighborhoods without ever having obtained use review as
required by the City's laws. In addition, certificates of occupancy were provided to a number of
group homes without the proper fire clearances. The City was so grossly negligent, it failed to
ever establish a clear protocol to handle community complaints.
Ms. LaVonne M. Harkless
October 9, 2007
Page 4
G The City 's Failure to Promptly Adopt New Ordinances that Adequately
Regulate Residential Care Facilities has, and Continues to Cause, harm to
Individual Residents and the Community.
The continuing institutionalization and intensification in the City's small coastal
neighborhoods and resulting physical and health and safety impacts, caused citizens at their own
expense, in support of the public interest, to expend tens of thousands of dollars to address City
regulations, ordinances and practices. The City's position on the new Ordinances is wholly
inconsistent with the General Plan, and legal requirements to ensure that the zoning ordinance is
consistent with the General Plan. For example, the General Plan Land Use Element claims the
City has a conservative growth strategy. However, it knowingly facilitated the rampant
unchecked growth of residential care uses creating over concentration and institutionalized
environment in residential zones. The City specifically violated the General Plan Land Use
Goals: LULI, LULL LU1.3, LUTA, and LU1.5; and Land Use Policies: LU2.1, LU2.3, LU2.4,
LU2.5, LU2.6, LU3.1, LU32, LU3.3, LUIS, LU3.6, LU4.1, LU4.2, LU5.1.1, LU5.I.2, LU5.13,
LU5.1.4, LU5.1.7, and LU5.1.8.
Over 500 citizens signed and submitted a Petition to the City for an Urgent Moratorium
to stop the continued establishment and expansion of these residential care facility and related
"residential care" businesses. The City did enact a temporary Moratorium, but ignored our
advice and crafted the Moratorium in such a manner that some operators have contended that
there are significant loopholes that allowed these businesses continued expansion.
During the period of the Moratorium, the City and its attorneys were instructed by the
City Council to "develop local ordinances to regulate residential care facility uses to the
maximum extant legally possible." City Council and staff have received input from the citizens
about case legal and statutory law, and policy benchmarks supporting the proposed regulation of
these uses. The Citizens have continued to invest considerable time and expense in the spirit of
collaboration and cooperation. The City staff did not carry out the Council's direction. Instead,
the City staff deliberately proceeded down a path which advocated only minimal control of
"residential care facilities ", best described as favorable to the "residential care" business
investors and operators, at the expense of the citizens and the community.
The City staff has resisted incorporating needed reforms into the ordinances, insisting
that before they do so, the citizens must "provide more evidence:" evidence of the location and
character of these facilities, and of impacts on neighborhoods and the community. There is more
than sufficient evidence already available to support a position of over - concentration and its
detriment to the character and integrity of the City's residential neighborhoods. The City
Council and. staff's position places the burden on the citizens to do the City's job. Worse yet, it
demonstrates that the City staff has not been listening to the citizens' complaints all of these
years concerning the impacts caused by these facilities and their over - concentration.
Ms. LaVonne M. Harkless
October 9, 2007
Page 5
Instead of focusing on the specific "residential care facilities" issue in particular, alcohol
and drug treatment centers — the City staffs approach has been to draft regulations affecting a
broad spectrum of uses; uses that already are extensively regulated by the City such as vacation
rentals. This has slowed down the process, and obfuscated the issue.
The citizens have made every effort, beyond reason or equity, to provide the City staff
with information, cooperation, and expertise. The City staff asked that the citizens provide
detailed comments on the ordinances. Despite the City's refusal to provide a copy of the draft
ordinance presented to the City's Planning Commission in an electronic form, we promptly
responded by providing a strikeout/underline version of the ordinances. This document was
largely ignored by the City staff.
The citizens have attempted to walk through the "public process" with the Planning
Commission and City staff to voice their opinions, and invest in development of sound
ordinances. We have provided a sound legal basis for the requested reforms and a sound public
planning policy foundation that would enable the City to take a reasonable position in its
ordinances to regulate these uses.
At every opportunity, the City staff, on its own or pursuant to someone's direction, has
used procedural delays to avoid getting the issues resolved at the Planning Commission, and
forwarding a legitimate, meaningful recommendation to the City Council.
Citizens and their advisors have not been af%rded either equitable voice, or serious
consideration. There have been no meaningful opportunities for exchange on the pertinent issues
involving the draft residential care ordinances. At the public hearings, the citizens and their
advisors have been offered a limited, clearly unsatisfactory amount of time to present their case,
and engage in meaningful dialog with the Planning Commission about the issues and various
recommendations. Yet, the City's outside counsel and staff have unlimited time and opportunity
to press their case. This is particularly problematic when the City staff and outside counsel
present the Planning Commission with incorrect and misleading information, and staff
recommendations are based on invalid information and analysis.
2. THE CITIZENS DEMAND TIM FOLLOWING:
That the City Council promptly adopt ordinances amending its Municipal Code that
include as a minimum the following:
(a) Establish an overlay zone that includes the impacted communities and those with
similar characteristics of Lido Isle and village, Balboa Peninsula, Balboa Island; West
Newport, Corona del Mar (old & village), Newport Heights; and Santa Ana Heights.
(b) Require within the overlay zone that all new and existing residential care facilities be
a minimum of 1,000 feet apart Rom each other.
Ms. LaVonne M. Harkless
October 9, 2007
Page 7
Orange, while providing guidance to the City on its revised 2004 ordinance. The evidence also
indicates that Mr. Burnham did not disclose on his Forms 700 (Statement of Economic Interest)
for 2003 — 2004 period his activities and his wife's, Kathleen Burnham, compensation as a
director of the Drug Court Foundation of Orange County. Further, the evidence indicates that
the City did not require Mr. Burnham to complete and file a Form 700 for 2004 — 2007 when he
was a consulting attorney with the City. He was not required to file the form even though other
consultants did so. In appearance and in fact, he should have been conflicted out of his
participation in the City's negotiation of these issues.
City Attorneys are, as all lawyers, subject to the Cammia Rules of Professional
Conduct, Under to Rules 3 -310, subdivision (B), an attorney may not continue to represent a
client without providing written disclosure where:
(1) The member has a legal, business, financial, professional,
or personal relationship with a party or witness in the same
matter; or,
(2) The member knows or reasonably should know that
(a) The member previously had a legal, business, financial,
professional, or personal relationship with a party or
witness in the same matter; and
(b) The previous relationship would substantially affect the
member's representation; or
(3) The member has or had a legal, business, financial,
professional, or personal relationship with another person
or entity the member knows or reasonably should know
would be affected substantially by resolution of the matter;
or
(4) The member has or had a legal, business, financial, or
Professional interest in the subject matter of the
representation."
Further, Rules 3 -310, subdivision (E) require that "[a) member shall not, without the
informed written consent of the client or former client, accept employment adverse to the client
or former client where, by reason of the representation of the client or former client, the number
has obtained confidential information material to the employment." We are not aware of any
such written disclosures being made with respect to these Rules.
The government process is supposed to be fair and transparent. Here, that does not
appear to be the case. The participation by individuals with an apparent conflict of interest, in
the development of ordinances regulating residential care facilities, and presence of malfeasance
(and pattern of retaliation) has resulted in a violation of the Citizens' procedural due process
Ms. LaVonne M. Harkless
October 9, 2007
Page 8
rights. Hearings must be held by disinterested, unbiased decision makers. The right to unbiased
decisions makers, was clearly established law at the time of the City's actions. (Bullock v. City
and County ofSan Francisco (1990) 221 Cal.App.3d 1072, 1091; Clark v. Hermosa Beach
(1996) 48 Cal.App.4th 1152,1172 -73; Stivers v. Pierce (9th Cir. 1995) 71 F.3d 732, 74748.)
Likewise, the City cannot evade the public hearing process by allowing a potentially conflicted
individual to work behind the scenes on those matters he is likely conflicted. But, this is exactly
what has occurred. The entire City Attorney's office and potentially other City staff have been
infected with this conflict
THE CITIZENS DEMAND THE FOLLOWING:
That the City Council:
i) Fully cooperate with any inquiries conducted by the Fair Political Practices
Commission of Robert Burnham, and other agencies as may conduct inquiry.
ii) Require Mr. Burnham to complete and file Form 700 for periods 2004 - 2007
when he was a contract consulting attorney with the City.
iii) Determine whether there.has been written disclosure by Mr. Burnham and
whether the City has formally ,legally waived any conflicts that exist
iv) Disqualify the City Attorneys Office from all participation in this matter and
establish an ethical wall.
A Further ConjUcis of interest in this Mather Cause Harm to Individual Residents and
the Community.
If any present and former members of the City Council ,staff or other policy bodies of the
City have, or in. the past have had, any direct or indirect financial in other operations of
residential care facilities or related types of `residential care facility" uses, the law demands that
such ties bb disclosed.
For example, the Citizens have obtained information that the City's current Mayor Steven
Rosansky may have, or had, undisclosed involvement with residential care facilities operating in
the City. If this is true, then the Mayor's participation in this matter will impermissibly taint the
proceedings. It is critical that the City immediately conduct an open and impartial investigation
of this allegation.
.1
Ms. LaVonne M. Harkless
October 9, 2007
Page 9
THE CIT ZENS DEMAND THE FOLLOWING.
That the City Council:
i) Conduct an ethics probe with outside, unrelated investigations to
determine whether the Mayor Steven Rosansky may have, or have had,
undisclosed involvement with residential care facilities operating in the
City.
u) If so, demand that the Mayor refrain from participating at hearings or
behind the scenes in this matter.
iii) Provide similar direction to members of the City Council, staff and other
policy - making bodies concerning attestation and reporting of Conflict,
relative to their interests in "residential care facilities."
The City Council has a fiduciary duty to protect all of its citizens. To do this, the City
Council must first disclose all relationships it has with the operators of these residential care
facilities, and disqualify those members that have ties to the operators. The City has 45 days to
comply with the Citizen's demands.
Very truly yours,
/Z'- Y 1 '
Michael L. Tidus
MLT:seb
cc: City Council Members (via e-mail)
City Manager (via e-mail)
744789.3
Ms. LaVonne M. Harkless
October 9, 2007
Page 9
THE CIT ZENS DEMAND THE FOLLOWING.
That the City Council:
i) Conduct an ethics probe with outside, unrelated investigations to
determine whether the Mayor Steven Rosansky may have, or have had,
undisclosed involvement with residential care facilities operating in the
City.
u) If so, demand that the Mayor refrain from participating at hearings or
behind the scenes in this matter.
iii) Provide similar direction to members of the City Council, staff and other
policy - making bodies concerning attestation and reporting of Conflict,
relative to their interests in "residential care facilities."
The City Council has a fiduciary duty to protect all of its citizens. To do this, the City
Council must first disclose all relationships it has with the operators of these residential care
facilities, and disqualify those members that have ties to the operators. The City has 45 days to
comply with the Citizen's demands.
Very truly yours,
/Z'- Y 1 '
Michael L. Tidus
MLT:seb
cc: City Council Members (via e-mail)
City Manager (via e-mail)
744789.3