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HomeMy WebLinkAbout05/26/2015 - Study Session / Regular MeetingCity Council Minutes Study Session and Regular Meeting May 26, 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. CURRENT BUSINESS SSl. Clarification of Items on the Consent Calendar Council Member Petros requested clarification of new definitions under Item 3 (Amendment to Newport Beach Municipal Code Chapter 14.16). Municipal Operations Co- Director Murdoch explained that one billing unit is equivalent to 748 gallons of water. Additionally, he explained a calculation developed to take into account conservation efforts that would allow for relief from compliance. SS2. Budget - Part 2 Finance Director Matusiewicz provided a PowerPoint presentation to address the Facilities Financial Plan (FFP), latest issues for.consideration, priority projects, near term funding sources, future sources of funding, key metrics and statistics, and the FFP reserve fund balance. In response to Council Member Petros' question, Finance Director Matusiewicz addressed the minimum fund balance and stated that, inclusive of all expenditures, the City does not go below the minimum target. He added that the plan requires a general fund contribution of $14 million a year, which never exceeds 5% of the general fund revenue. Finance Director Matusiewicz addressed general fund expenditures by type, maintenance and operations by account, and details of contractual services, including professional technical services, residential refuse, and contract recreation instruction. He discussed internal service fund charges and reported that it includes a set -aside number for future expenditures. He reported on maintenance and supplies and provided a summary of utilities, capital and other expenditures. Finance Director Matusiewicz addressed expenditures by program, other sources of revenues, all revenues by fund, employee count by department and year, historical capital project spending, consideration of new development, the formal internal audit program, upcoming implementation of a citizen transparency portal, and provided useful web links and contact information. Council Member Duffield recused himself from the Mariners Mile Studies because he has a business on Mariner's Mile. Mayor Selich asked if anyone is interested in discussing the Mariners Mile Studies and there was no response. Finance Director Matusiewicz presented details of the Budget Checklist items Volume 62 - Page 312 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Regarding short -term lodging, City Manager Kiff addressed the issue of people renting out their homes without a short -term lodging permit, noting the need for additional resources to ensure compliance. He also clarified that "short- term" lodging relates to rentals of 30 days or less. City Attorney Harp commented on potential violations of the Zoning Code. City Manager Kiff added that operation of a boarding house is prohibited in the City, but that vacation rentals are allowed on a week -to -week basis. City Attorney Harp noted that each situation is unique and needs to be dealt with on a case -by -case basis. In response to Council Member Peotter's question, City Manager Kiff stated that enforcement is not handled by Code Enforcement, but rather by the Revenue Division to ensure that everyone offering short -term lodging has a permit. City Manager Kiff addressed contributions to the Balboa Island Museum and Historical Society, the Sister Cities Association, and Community Development contracts. Additionally, he reported on beach security and fire ring management, and commented on the delineation between charcoal users and wood users (Plan 17). He confirmed that beach security includes the enforcement of curfews. In response to Mayor Pro Tem Dixon's question, City Manager Kiff addressed the Arts and Culture Master Plan and reported that staff is proposing a .75 full time equivalent contract position for $60,000 which is offset by a contribution of $150,000. City Manager Kiff reported that the Corona del Mar Entry Project is funded, per Council's request, and commented on funding needs for installing drought- tolerant plants in medians. In response to Mayor Selich's question, Public Works Director Webb reported on plans for the Irvine Terrace median. Mayor Selich suggested discussing the issue with the Irvine Terrace Homeowners Association. Finance Director Matusiewicz addressed changes to rebudgeted CIPs and clarified that, if items are shown in parenthesis, they are being expended in Fiscal Year 2014 -15. Finance Director Matusiewicz presented a personnel change summary. City Manager Kiff added that the net change is an increase of two positions but that, as of June 2016, there will be a decrease of one position. Brief discussion followed regarding Harbor Resources personnel. Finance Director Matusiewicz presented a General Fund surplus summary. City Manager Kiff added that the checklist implements the surplus from the current year by sending half of it to neighborhood enhancement and half to other post - employment benefits. At Council Member Peotter's request, Public Works Director Webb addressed the budget and plans for seawalls. Council Member Peotter suggested placing a higher priority on the seawalls if it is determined to proceed with maintenance rather than replacement, and fund it by delaying the Corona del Mar Fire Station/Library project. He added that residents are interested in raising money for an expanded library and want more time to consider the matter and provide input. In response to Council Member Peotter, Police Chief Johnson addressed Police staffing for Volume 62 - Page 313 City of Newport Beach Study Session and Regular Meeting May 26, 2015 the Peninsula. He noted issues on the Peninsula that need to be resolved besides those issues related to bar - closing times and reported that having the requested team of Officers allows the Department to address those issues appropriately. Council Member Peotter indicated that the bar - related problem may go away because of the cooperation of bar owners and asked what Chief Johnson could do with $200,000 rather than $800,000. Police Chief Johnson reported that, with the recession, the Department eliminated eight Bicycle Officer positions from the Peninsula. He stated that they are only asking for half of those positions back (three Officers and a Supervisor). The issues that were there before still exist. With the reductions, the Department focused on what is important (crime issues) and the quality of life issues sometimes did not get the attention the community wishes they would get. He noted an increase in City -wide arrests and commented on the impacts on the Department due to State mandates. Chief Johnson added that there has been a 27% increase in violent crimes on the Peninsula, noting that alone would justify additional Officers. In response to Council Member Peotter's question, Police Chief Johnson reported that violent crimes include rapes and aggravated assaults, and that these are directly related to alcohol establishments. Regarding seawalls, Council Member Petros recalled that the Tidelands Management Committee (TMC) authorized this level of activity as being prudent, knowing that there will be years of design and permitting to get through in order to get to construction. Further, the TMC provided the City Council with a strategy to move forward with spot improvements at a Study Session. Public Works Director Webb reported that this was one of the options. He added that once Council provides specific direction, staff is ready to start. Mayor Pro Tom Dixon added that there is a sense of momentum to move the seawall project forward and the funds are in the Tidelands Capital Fund, Council Member Duffield believed that this is a safety issue, more than just a capital improvement issue. He wondered whether there is opportunity to use the safety issue to speed up the process of permitting the seawall repair. Public Works Director Webb stated there is a process considered under "imminent danger" and agreed with the need to move forward with the project. In response to Council Member Peotter's question, Finance Director Matusiewicz reported that the Tidelands Capital Fund borrowed significant amounts of money to catch up on the dredging project and owes the General Fund. Depending on Council actions, there may not be a reliable source of money in the Tidelands Capital Fund to do the project. City Manager Kill noted that the City has eight different Master Plans. Each is a plan to accept revenues and make expenditures over time to meet their goals. He added that, presently, there are no funds for the bigger seawall projects. Council Member Muldoon stated the Corona del Mar Fire Station /Library project may be a good project to halt to shift the funds to the Balboa Island seawall. Council Member Duffield believed that the $400,000 budget for the Central Avenue public pier should be $50,000 to $100,000. He commented on the $800,000 allocated for harbor piers and gangways, and reported that he visited all of them and believed that they are in good condition. He stated that the money could be available for other projects. Additionally, he also commented on State beaches. Volume 62 - Page 314 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Council Member Curry believed that any plan to suspend the Corona del Mar Fire Station/Library project is a plan to kill the project. He addressed the current proposal and suggested not slashing revenues in the Tidelands Fund so that the seawall project is adequately funded and moved forward. He added that the seawall projects need to be done very thoughtfully, are a long -term investment, and require a lot of permitting and working with the neighbors. He noted that there is no consensus on Balboa Island as to how high the seawalls should be. He commented on limitations of City Council trying to design projects on their own from the dais and suggested hearing from the Board of Library Trustees as to whether or not they support the decision to delay the Corona del Mar Fire Station/Library project. Council Member Muldoon stated that Council decides what happens in the City, not staff. He indicated that the City should be more concerned with the necessities that involve safety and the welfare of residents than on a project that should not be rushed. He spoke in support of restraint and the City Council deciding which projects should be approved. Council Member Peotter reported that it is not the intent to stop the Corona del Mar Fire Station/Library project. He noted that the Friends of the Corona del Mar Library are in favor of having more input and being able to potentially raise money to add square footage to the proposed plan. He added that it is his intent to put together a plan to repair the seawall. He stated that he has not seen the Tidelands Capital Budget and that many things in the budget make him uneasy, so he will not support the budget at this time, as he feels he does not have all the information he needs. He would support it if the Finance Committee had the authority to get into the line item details and added that he would prefer if the Finance Committee was made up of an all- citizen panel, starting this fiscal year, and task them with specific duties. He believed that there are many things in the budget that deserve their scrutiny. Additionally, he expressed concern that the reduction of business license fees has not been addressed, as well as having an efficiency study. Council Member Duffield noted that the Harbor makes money, but that the surf beach loses money. He believes that the City is burdening the users of the Harbor to pay for things that are above and beyond what they need to. He indicated that the losses are due to operating the lifeguard system and maintaining the beaches. He stated that it is unfair to burden boaters /users of the Harbor and noted the need to do a study relative to the beach. Council Member Curry noted the need for the new Council colleagues to look at the implications of some of the things they are proposing. He reported that Council Member Peotter's proposal regarding business license fees would cut the City's revenues by $3.5 million. He commented on expenditures related to dredging the Harbor, the Corona del Mar Fire Station /Library project, and seawalls, and reported that beaches are part of the tidelands, as is the Harbor. He believed that none of the ideas presented make economic sense. In response to Council Member Peotter's question, City Manager Kiff explained why seawalls are tidelands. Council Member Peotter commented on Visit Newport Beach (VNB) and wondered why TBID Transient Occupancy Tax (TOT) revenues and expenses are not shown in the City's budget. Finance Director Matusiewicz reported that, similar to assessment districts, the collection of the assessment and the remittance is a fiduciary role and is not an activity of the City. The City acts in a trust -in- agency capacity and the Tourism Business Improvement District (TBID) decides how they expend those funds. Council Member Peotter proposed that it be shown as line items in order to track them. He added that all of the BIDS should be included. Finance Director Matusiewicz addressed the checks and Volume 62 - Page 315 City of Newport Beach Study Session and Regular Meeting May 26, 2015 balances related to VNB, as well as audits and procedures. He added that they would be happy to make a presentation to Council at a future Study Session regarding their structure and organization. Council Member Curry explained that the TBID was a voluntary effort by some of the hotels to gather together and assess themselves so they can promote the City. He addressed growth in revenues, noting it is a measure of the effectiveness of spending TBID money to promote the City to increase revenues. He added that the incremental work is enough to build the Corona del Mar Library and that the following year it is enough to do the seawall improvements, as long as the City does not get involved by putting additional government burdens on what they are trying to do. Council Member Duffield commented on the State providing lifeguards and believed that the State's lifeguard standards are higher than the City's. In response to Council Member Duffield's question regarding the vessel property tax, Finance Director Matusiewicz reported that the City gets a percentage of it and that the City is the taxing authority. He added that it is Council's prerogative to use any unrestricted General Fund money for capital improvement purposes. Council Member Peotter commented on the accomplishments of VNB and noted that his concerns relate to reporting and accountability. Council Member Petros referenced Council Member Muldoon's statement regarding Council's obligation to determine how the budget is spent and the projects it wants to fund. He believed that the opinion also extends to the community purse and stressed that he is not prepared to relinquish his responsibilities to a citizen's committee. He added that Council needs to continue to be part of the Finance Committee. He added that the people of the City appreciate their lifeguards, noting that the level of quality and service speaks to that. Council Member Duffield stated that the General Fund needs to pay for things in the Harbor because the Tidelands Fund will never cover the costs of managing and maintaining beaches. He reiterated that it is unfair to burden users of the Harbor with those costs. Mayor Pro Tern Dixon thanked staff for providing the additional level of detail. She reported meeting with Department Directors and has a better understanding of how the City is doing relative to outsourcing. In response to her question regarding the possibility of finding other efficiencies by outsourcing services, City Manager Kiff commented on the need to look at different ways of doing things. He reported this may include wastewater, administering the Emergency Medical Services (EMS) program, asphalt and concrete patching, fire prevention and fleet maintenance. City Manager Kiff added that Council has a line item every year for studies and that Council may direct staff accordingly. Council Member Peotter commented on the citizens committee, adding that they would only be a recommending body to Council. He asked regarding Marina Park staffing and City Manager Kiff clarified that he counts full -time positions and does not count part -time positions the same. Budget Manager Giangrande reported that part -time positions are those working 38 hours or less. She added that employees become eligible for PERS enrollment after working 1,000 Volume 62 - Page 316 City of Newport Beach Study Session and Regular Meeting May 26, 2015 hours in a fiscal year. Joy Brenner, Friends of the Corona del Mar Library, provided information regarding the group and addressed community involvement and input. She stated that the group will consider anyone's ideas and that the consensus is that they do not wish to see the project delayed. They agree with the need for increased public input but they do not feel comfortable pulling the project from the budget, at this time. She urged Council not to fund one project at another's expense and expressed concerns regarding the message being sent. Josh Yocum commented on personnel changes relative to Lifeguard restructuring, believing it does not reflect the budget actuals. He noted that there is a current process to fill vacant positions based on need and referenced Item 13 (Tentative Agreement with the Newport Beach Lifeguard Management Association), noting that neither it nor the tentative agreement discusses the proposed budget changes. He commented on the need to ensure that the City is appropriately spending money where it needs to. Jim Mosher expressed the opinion that it is good for Council Members to be educating themselves in public because the public may become educated at the same time. He addressed the FFP, the Corona del Mar Library, the Balboa Fire Station, employee salaries and benefits, contracts, and projected General Fund surpluses. He asked if the surplus from last year is regarded as revenue into the current budget. Elizabeth Stahr stated that the City should be proud of its Library and commented on its use. She noted the need to maintain the same high quality in the Corona del Mar Library and commented on its importance to the community. Linh Do spoke in support of the Corona del Mar Library and on its importance to the community and its children. Additionally, she commented on the popularity of the children's programs. Karen Carlson spoke in support of the Corona del Mar Library not only for children in the community, but everyone. She added that many residents were not aware of the plans and the lack of community input. She also expressed support for keeping the project in the budget in order to move the project forward. City Manager Kiff commented on Council concerns with items in the budget and encouraged Council to bring those items up during the Regular Meeting to place as an amendment on the checklist. SS3. Wastewater Rate Study— Continued to the next Study Session. 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 -6:10 p.m. A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Deputy City Manager; Negotiators. Volume 62 - Page 317 City of Newport Beach Study Session and Regular Meeting May 26, 2015 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). V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich VIII. CLOSED SESSION'REPORT - City Attorney Harp announced that no reportable actions were taken. IX. PLEDGE OF ALLEGIANCE - Council Member Peotter X. INVOCATION - Outreach Director Zuhair Shaath of the Islamic Institute of Orange County XI. PRESENTATIONS - None 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 Petros reported attending the Newport Crest Homeowners Association meeting on May 14th and addressed residents' concerns, including impacts associated with the Banning Ranch project. He added that they discussed the issue of an easement as addressed in Resolution No. 84= 38. He requested that staff review the resolution and determine the willingness of Council to place consideration of vacating that easement on a future agenda. He reported participating in a Lifetime Achievement Award to Jean Watt by the League of Conservation Voters, and announced that he sat in on a design exercise at Orange Coast College with the Architecture Honors Group. Mayor Pro Tem Dixon reported graduating from the Newport Beach Police Department Citizens Academy. She spoke positively regarding the program and encouraged her colleagues to participate in it, as well. She thanked Police Chief Johnson and his staff. Council Member Curry reported representing the City, along with the Association of Orange County Cities and the Orange County Business Council, in Washington D.C. in an annual meeting. He reported meeting various officials to discuss trade, the importance of the 405 Freeway, water, and Harbor dredging. Mayor Selich reported attending Public Safety Day and the Balboa Island Art Walk on May 17th. He announced that he attended the Police Academy Graduation, participated on a panel of Mayors for Leadership Tomorrow, and attended the Asian Pacific Festival at the Dunes. Volume 62 - Page 318 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Mayor Selich announced upcoming events, including the Balboa Island Wine Walk on May 30th and the Wooden Boat Festival at the Balboa Yacht Club on June 6th, where there will be a replica of the America (first America's Cup boat). He announced that the Balboa Island Parade will be held on June 7th, the Balboa Island Museum and Historic Society tour of eight Balboa Island homes will be on June 200, and announced a call for applications for Special Event grants. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher commented on Item 16 (Changes to the Fiscal Sustainability Plan and Finance Committee Administrative Practices), noting that action needs to be done by resolution. Regarding Item 5 (Second Reading of Ordinance for Height Overlay District Zoning Code Amendment in West Newport Mesa), he noted that usually an ordinance cannot be changed between first and second reading and stressed the need to get the wording right during introduction of the ordinance. He commented on Items 4 (Water- Propelled Vessels in Newport Harbor) and 3 (Water Conservation Ordinance and Supply Level Regulation), noting that the Ordinances differ from what was originally introduced. Mike Glenn commented on Item 4 and requested that Council consider offering two licenses for increased competition. Pam Whitesides spoke regarding Item 4, stating that she understood the operation would be between Lido Village and Pacific Coast Highway. She noted that the company's operation plan indicates there is plenty of room to operate away from residents as much as possible, towards Lido Village. She added that Council needs to address whether there can be more than one flyer at a time. Libby Huyck spoke regarding Item 3 and asked if there are any measures for water supply planning and whether there is a comprehensive plan to increase the City's supply of water. She stated she would like to see a timeline for the plan. Additionally, she commented on the reduction of water use by 25% and asked how often Council reviews the levels in the Ordinance. Dean O'Malley, President of Jetpack America, provided an update of actions the company has recently taken to encourage working together with residents to find mutually - agreeable solutions and to address their concerns. He presented details of changes to the operation to comply with the Ordinance and thanked the City for continuing their opportunity. Neil Katz, M.D., customer of Jetpack America, spoke in support of their safety record. He reported bringing corporate events into the City through the use of Jetpack America and stressed the importance of supporting small businesses and the people that support them. Don Cole, reported that the area in which Jetpack America will operate is the same temporary anchorage area that the Harbor Commission is recommending for two or three months this summer. XV. CONSENT CALENDAR Council Member Curry reported recently observing a flight by Jetpack America and noted that the sound was a muffled noise. He commended Council Member Peotter regarding Item 6 (Resolution Reaffirming Support of Proposition 13). Council Member Petros reported receiving many emails regarding Item 3 (Water Conservation Ordinance and Supply Level Regulation) and reported that, as a result of the amendments, resident conservation efforts will be noted and are part of the Ordinance. He added that there is a new section in the Ordinance that addresses relief when a resident is already conserving water. Volume 62 - Page 319 City of Newport Beach Study Session and Regular Meeting May 26,2015 A. READING OF MINUTES AND ORDINANCES 1. Minutes for the May 12, 2015 Regular Meeting [100-2015] Waive reading of subject minutes, approve as amended, and order filed. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. B. ORDINANCES FOR INTRODUCTION 3. Amendment to Newport Beach Municipal Code Chapter 14.16 (Water Conservation Ordinance and Supply Level Regulation) [100-2015] a) Review and approve changes to Newport Beach Municipal Code 14.16 (Water Conservation and Supply Level Regulations); and b) Introduce amended Ordinance No 2015-14, An Ordinance of the City Council of the City of Newport Beach, California, Amending the Newport Beach Municipal Code to Amend Chapter 14.16 Regarding Water Conservation, and pass to second reading on June 9, 2015. C. ORDINANCE FOR ADOPTION 5. Second Reading of Ordinance for Height Overlay District Zoning Code Amendment in West Newport Mesa (PA2015-047) {100-2015] a) Find the project to be categorically exempt pursuant to Title 14 of the California Code of Regulations (Section 15305, Article 19 of Chapter 3, Guidelines for Implementation of the California Environmental Quality Act) under Class 5 (Minor Alterations in Land Use Limitations); and b) Conduct second reading and adopt amended Ordinance No. 2015-12, An Ordinance of the City Council of the City of Newport Beach, California, Approving Zoning Code Amendment No. CA2015-004 Creating a Height Overlay District to Allow Increased Residential Building Height for Properties Located in the Multiple Residential Zoning District in Statistical Area A2 in West Newport Mesa (PA2015-047). D. RESOLUTIONS FOR ADOPTION 6. Resolution Reaffirming Support of Proposition 13 [100-2015] Adopt Resolution No. 2015-38, A Resolution of the City Council of the City of Newport Beach in Support of Proposition 13. 7. Adoption of Fiscal Year 2015-16 Appropriations Limit [100-2015] Adopt Resolution No. 2015-37, A Resolution of the City Council of the City of Newport Beach Determining and Establishing an Appropriations Limit for Fiscal Year 2015-16 in Accordance with Article XIIIB of the California Constitution and Government Code Section 7910, in the amount of $167,578,050. E. CONTRACTS AND AGREEMENTS 8. Police Facility Carpet Replacement Project -Award Contract No. 6105 [381100- 2015] Authorize the Mayor to execute a contract with Commercial Interior Resources (CIR) of Irvine, California, under the terms of NJPA Contract No. 022712-IFA and the City's Special Conditions for the purchase and installation of replacement carpeting for the Police Facility. Volume 62-Page 320 City of Newport Beach Study Session and Regular Meeting May 26,2015 9. Request to Retain and Install Private Improvements within the Park Avenue Public Right-of-Way at 501 Park Avenue (C-6146) [381100-2015] a) Waive Council Policy L-6, Private Encroachments in Public Rights-of-Way, to retain an existing raised concrete patio slab and wrought iron fencing with a total maximum height of 3-feet that encroaches in excess of 1-foot into the Park Avenue right-of-way, contingent upon all conditions of the Encroachment Permit process being met; b) Waive City Council Policy L-6, Private Encroachments in Public Right-of-Way, to allow the installation of a portion of an ADA curb ramp and separate raised planter with a maximum height of 6-inches that encroaches in excess of 1-foot into the Park Avenue right-of-way, contingent upon all conditions of the Encroachment Permit process being met; and c) Direct staff to enter into an Encroachment Agreement with the Owner and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. 10. Approval of Three (3) On-Call Repair Services Agreements for Underground Utility Installation and Repair Services [38/100-2015] a) Approve an on-call repair services agreement with Doty Bros. Equipment Co. (C-6147) for underground utility installation and repair services, and authorize the Mayor and City Clerk to sign the agreement; b) Approve an on-call repair services agreement with GCI Construction, Inc. (C-6148) for underground utility installation and repair services, and authorize the Mayor and City Clerk to sign the agreement; and c) Approve an on-call repair services agreement with T.E. Roberts, Inc. (C-6149) for underground utility installation and repair services, and authorize the Mayor and City Clerk to sign the agreement. 11. Approval of On-Call Maintenance and Repair Agreement with Sancon Engineering for As-Needed Pipelining Services (C-6150) [38/100-2015] Approve the on-call maintenance and repair services agreement with Sancon Engineering for as-needed pipelining services for a term of three years with a total amount not to exceed $200,000, and authorize the Mayor and City Clerk to execute the agreement. 12. Approval of On-Call Repair Services Agreement with International Line Builders for On-Call Streetlight Repairs (C-5549) [381100-2015] Approve an on-call repair services agreement with International Line Builders, Inc. for streetlight repair services, and authorize the Mayor and City Clerk to sign the agreement. 13. Tentative Agreement with the Newport Beach Lifeguard Management Association (C-2058) [38/100-2015] Receive and consider the Tentative Agreement between the City of Newport Beach and the Newport Beach Lifeguard Management Association, in advance of adopting a successor Memorandum of Understanding for the period July 1, 2014 through December 31, 2017, to be presented for City Council consideration no sooner than June 9, 2015. 14. Acquisition of 2015 Rule 20A Credits from the City of Mission Viejo (C-4977) [38/100-2015] a) Upon approval of funding in the FY 2015/16 budget, authorize the City Manager to execute the Memorandum of Understanding (MOU) between the City of Newport Beach and City of Mission Viejo documenting details of transaction for the Rule 20A credit acquisition and to provide the City of Newport Beach first right of refusal to purchase additional Rule 20A credits from the City of Mission Viejo, as it becomes available, at a purchase rate of $0.55 on the dollar; and Volume 62-Page 321 City of Newport Beach Study Session and Regular Meeting May 26, 2015 b) Authorize staff to process the Rule 20A credit transfer between the City of Newport Beach and City of Mission Viejo with SCE. F. MISCELLANEOUS 15. Planning Commission Agenda for the May 21, 2015 Meeting [100 -20151 Receive and file. Motion by Mayor Pro Tem Dixon, seconded by Council Member Peotter, to approve the Consent Calendar, except for the items removed (4 and 16). The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR 4. Water - Propelled Vessels in Newport Harbor - Code Modification to Restrict and Regulate Operations [100 -2015] Council Member Duffield recused himself from this Item because he owns a boat rental business. Mayor Pro Tem Dixon requested and received clarification from City Manager Kiff relative to the duration of the permit, extension of the original permit, details of the new permit, and the specific location in which Jetpack America will operate. Additionally, he provided information regarding the appeal process. Jim Mosher commented on the Ordinance and the expectation there would be an annual review of the Jetpack America operation. He noted that the original Ordinance has been replaced with a new Ordinance indicating that the Harbor Resources Manager can issue a permit for a jetpack -type of operation. He added that some of the features have been put into a new Council Policy (H -6), but nothing in it mentions an annual review by the City Council or the operation being restricted to the Turning Basin. He referenced the appeals process, stating that he does not see it working in a way that would be beneficial to anyone other than the applicant. Motion by Council Member Curry, seconded by Council Member Petros, to a) introduce Ordinance No. 2015 -13, An Ordinance of the City Council of the City of Newport Beach, California, Regulating and Limiting the Operation of Vessels Propelled by Water above the Surface of Neu+port Harbor, and pass to second reading on June 9, 2015; and b) adopt Resolution No. 2015 -39, A Resolution of the City Council of the City of Newport Beach Adopting City Council Policy H -6 Relating to Water Propelled Vessels. The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Noes: Council Member Peotter Recused: Council Member Duffield 16. Changes to the Fiscal Sustainability Plan and Finance Committee Administrative Practices [I00 -20151 Volume 62 - Page 322 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Council Member Peotter reported receiving emails regarding the Fiscal Sustainability Plan and stated that there are four items he does not see already covered in the Council Policy Manual. He asked whether it would be appropriate to add the items not already covered in the Fiscal Policy section of the Council Policy Manual (Nos. 7, 10, 12 and 13) which would delete the need for the Fiscal Sustainability Plan. Motion by Council Member Peotter, seconded by Council Member Muldoon, to delete the Fiscal Sustainability Plan and add Nos. 7, 10, 12 and 13 to the Council Policy Manual and allow staff to determine the numbering in the Policy Manual. Council Member Curry commented on the Fiscal Sustainability Plan, noting that the plan has worked. He spoke in opposition to making changes without any thought or input from anyone. Jim Mosher referenced written comments he submitted and spoke regarding the Fiscal Sustainability Plan and subsequent changes. He suggested that Council begin with the newest version rather than one that has been replaced. He questioned the need for adoption of a resolution to amend this. Council Member Curry addressed Mayor Pro Tom Dixon's suggestion to modify the plan in a way that would address the City's capital needs. He added that it was discussed by the Finance Committee and presented to Council for action. The motion failed by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield Noes: Council Member Petros, Council Member Curry, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Council Member Peotter spoke in favor of having seven citizen advisors on the Finance Committee. Motion by Council Member Peotter, seconded by Council Member Duffield, to approve the Resolution, maintain the current meeting time and location of the Finance Committee, and change its membership to a seven - citizen committee, appointed by each Council Member. Council Member Peotter added that he would like increased citizen involvement and have the Finance Committee review budget line items in detail and bring recommendations to Council. Council Member Duffield agreed, believing that it can be intimidating when there are Council Members on a committee. Council Member Muldoon stated that he supports more citizens being involved in the process. Council Member Curry believed that the Finance Committee is working fine, but the amendments previously offered by Council Member Peotter were found to be unworkable. He reported that the Finance Committee had a robust discussion at its last meeting and that it is developing a good strategy for how it can be helpful in reviewing the budget going forward. Mayor Pro Tom Dixon addressed her responsibility to the people of Newport Beach and stated that she wants to participate in the Finance Committee. She agreed with Council Member Curry that discussions of the Finance Committee are very robust with everyone fully participating. She added that the budget is an evolving document and there will be opportunities throughout the year to contribute to the finance discussion. Volume 62 - Page 323 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Amended motion by Council Member Peotter. seconded by Council Member Duffield, to approve the Resolution, maintain the current meeting time and location of the Finance Committee, and change its membership to a seven- citizen committee, appointed by each Council Member effective July 1, 2015. Council Member Petros reported that one of the most important things an elected official can do is to be a good steward of the community budget and be part of the Finance Committee. Therefore, he indicated he will not relinquish that responsibility and that he supports increasing community participation, but does not believe that sitting on a committee has much to do with that. City Manager Kiff reported that Recommendation A requires a resolution and that staff can bring the matter back as a continued item. He stated that Council may pass Recommendation B. The motion failed by the following roll call vote: Ayes: Council. Member Peotter, Council Member Duffield, Council Member Muldoon Noes: Council Member Petros, Council Member Curry, Mayor Pro Tem Dixon, Mayor Selich Motion by Council Member Curry, seconded by Council Member Petros, to a) continue the Fiscal Sustainability Plan; and b) adopt Resolution No. 2015 -40, A Resolution of the City Council of the City of Newport Beach Amending the Administratiue Practices of the Finance Committee. The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Noes: Council Member Peotter XVII. PUBLIC COMMENTS ON NON - AGENDA ITEMS Paul Matheis commented on his experience working for the City and on the City's spending to settle claims by current and former employees. He addressed the leaking of a confidential memo regarding an employment matter to a reporter of the Orange County Register and relayed a similar event that happened to him several years ago. He believed that the pattern of conduct needs to be investigated and asked that Council authorize the Mayor to submit a request that the 2015/2016 Orange County Grand Jury investigate the matter. Mike Glenn thanked the bars and restaurants on the Peninsula for their efforts in obtaining Licensee Education on Alcohol and Drugs (LEAD) certification and thanked the Police Department for their work during the Memorial Day weekend. Libby Hayek addressed the budget and City spending on Lido projects. Carolyn Blevins asked that Council consider the City's homeless population and suggested considering some kind of coalition to address the matter. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Mayor Pro Tem Dixon reported on recent Balboa Village Advisory Committee (BVAC) and Water Quality /Coastal Tidelands Committee meetings, and addressed items discussed and considered at Volume 62 - Page 324 City of Newport Beach Study Session and Regular Meeting May 26, 2015 each meeting. She presented results of a survey related to the Balboa Village parking permit program, adding that a report will be submitted to Council in the future. Council Member Duffield reported on a recent Watershed Executive Committee meeting. Referencing Mr. Glenn's previous statement, Council Member Curry emphasized that the education of serversibartenders is critical in reducing DUIs. XIX. PUBLIC HEARINGS 17. Minor Amendments to Newport Beach Zoning Code (PA2015 -056) [100 -2015] Planning Manager Alford provided a brief staff report. He addressed the last update to the Zoning Code and subsequent unintended changes to land -use and property development regulations. Mayor Selich opened the public hearing. Jim Mosher believed that there is a slight discrepancy between what the staff report says Council is enacting and what it is actually enacting. He addressed vehicle equipment sales, general sales, and limited sales, and noted the need to modify the definitions. Hearing no further testimony, Mayor Selich closed the public hearing. Motion by Council Member Petros, seconded by Council Member Peotter, to a) find that the adoption of Code Amendment No. CA2014 -005 is categorically exempt under Section 1.5305, of the State CEQA (California Environmental Quality Act) Guidelines - Class 5 (Minor Alterations in Land Use Limitations); Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378); and under CEQA Regulation Section 15061(b)(3) because the amendment has no potential for causing a significant effect on the environment; and b) introduce Ordinance No. 2015 -15, An Ordinance of the City Council of the City of Newport Beach, California, Approving an Amendment to Title 20 (Zoning Code) of the Newport Beach Municipal Code to Correct Unintended Changes to Zoning Regulations that were Created with the Comprehensive Update in 2010 (PA2015 -056), approving Code Amendment No. CA2015 -005, and pass to second reading on June 9, 2015. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich 18. Conduct a Public Hearing and Adopt Resolution for Level Three Water Supply Shortage [100 -20151 Mayor Selich opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Curry, seconded by Council Member Peotter, to continue the item to the June 9, 2015 City Council Meeting. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich Volume 62 - Page 325 City of Newport Beach Study Session and Regular Meeting May 26, 2015 19. Resolution No. 2015 -41: Renewal of the Corona del Mar Business Improvement District for Fiscal Year 2015 -2016 and Board Appointments for Fiscal Year 2015 -2016 [100 -20151 Mayor Selich opened the public hearing. Regarding Items 19 and 20, Jim Mosher discussed appointments and expressed the opinion that the City is not following the City Charter. He commented on BIDS being self - supportive, added that there is also a taxpayer contribution buried in the budget, and asked regarding the amount of taxpayer support allocated to the BIDS. Additionally, he commented on a line item in the General Fund budget for contributions from the BID. Hearing no further testimony, Mayor Selich closed the public hearing. City Clerk Brown reported she did not receive any protests regarding this matter. Motion by Council Member Curry, seconded by Council Member Peotter, to a) adopt Resolution No. 2015 -41, A Resolution of the City Council of the City of Newport Beach Confirming the Levying of Assessments for the Fiscal Year of July 1, 2015 to June 30, 2016 for the Corona del Mar Business Improvement District, since the protests represented less than 50 percent of the total assessment amount; and b) appoint the following to the Corona del Mar Business Improvement District Advisory Board of Directors for Fiscal Year 2015 -2016: Keith Dawson, Dawson & Dawson Humid Kianipur, 76 Gas Station Scott LaFleur, Sherman Library & Gardens, representing Cafe Jardin Scott Laidlaw, Laidlaw Schultz Architects Shawn Lim, Rose Bakery Cafe Michelle Peschel, Villa Real Estate Jessica Prause, The Port Theatre Bernie Svalstad, BPS Financial Jim Walker, The Bungalow Restaurant The motion carried by the following roll call vote: :ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tern Dixon, Mayor Selich 20. Resolution No. 2015 -42: Renewal of the Newport Beach Restaurant Association Business Improvement District for Fiscal Year 2015 -2016 and Board Appointments for Fiscal Year 2015 -2016 (100 -20151 Mayor Selich opened the public hearing. Hearing no testimony, he closed the public hearing. City Clerk Brown reported she did not receive any protests regarding this matter. Motion by Council Member Curry, seconded by Council Member Peotter, to adopt Resolution No. 2015 -42, A Resolution of the City Council of the City of Newport Beach Confirming the Levying Assessments for the Fiscal Year of July 1, 2015 to June 30, 2016 for the Newport Beach Restaurant Business Improvement District, since the protests represented less than 50 percent of the total assessment amount; and b) appoint the following to the Newport Beach Restaurant Association Business Improvement District Advisory Board of Directors for Fiscal Year 2015 -2016: Volume 62 - Page 326 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Antonio Bevacqua, Canaletto Ristorante Joe Campbell, Ruby's Diner, Balboa Pier Sheri Drewry, Wilma's Patio Stephen Joyce, Newport Beach Tennis Club Mario Marovic, Malarky's Irish Pub Dan Miller, The Village Inn Cindy O'Shea, Whole Foods Alexandra Robinson, Park Avenue Cafe John Robinson, Amelia's Seafood & Italian Restaurant Ron Schwartz, Muldoon's Irish Pub Jim Walker, The Bungalow Restaurant The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Pettus, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 21. Resolution No. 2015 -43: Fiscal Year 2015 -16 Budget Adoption [100 -20151 City Manager Kiff noted that this is the actual public hearing for the budget adoption and encouraged Council Members to provide comments. Mayor Selich opened the public hearing. Joy Brenner, Friends of Corona del Mar Library, stated that the group is in full support of moving forward with the Corona del Mar Fire Station/Library project and that it will work to ensure that representation from the community is done as quickly as possible. She encouraged those interested to contact the group through the Library staff. She thanked Council for its service. Linh Do spoke in support of the Corona del Mar Library and addressed its importance to community families, the children, and seniors. She expressed concerns regarding interim programming during construction. Karen Carlson spoke in support of the Corona del Mar Library. Wendy Salter spoke in support of the Corona del Mar Library. Shirley Pepys, Balboa Museum and Historical Society, provided information regarding the organization and hoped that Council will continue its support. A representative of the Balboa Museum and Historical Society commented on the organization's achievements and encouraged Council's continued support. Michael Glenn commented on the addition of Police Officer positions, discussed the decrease in crime rates, and questioned why the Police Department needs four additional Officers. He expressed the opinion that the allocation of $800,000 is too much. Jim Mosher commented on his efforts to understand the budget and reiterated his concerns regarding the City's expected surplus if the budget is approved. He addressed the budget checklist relative to anticipated revenue from Visit Newport Beach (VNB) and hoped the matter can be clarified. He commented on the FFP and Fire Station 6 items, and expressed hope that Council can plan better in the future. Volume 62 - Page 327 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Cathy Ivey commented on the proposed funding for additional Police Officers on the Peninsula and believed that it is not necessary since the community is safe. She believed that the allocation of $800,000 is excessive. Hearing no further testimony, Mayor Selich closed the public hearing. City Attorney Harp suggested addressing the Mariners Mile Studies and Visit Newport Beach (VNB) at this time. Council Member Duffield recused himself from the Mariners Mile Studies checklist item since he has a business on the Mariners Mile. Out of an abundance of caution, Council Member Duffield recused himself from the VNB checklist item due to a potential source of income. Regarding VNB, Council Member Peotter noted that he would like to see increased reporting from them. Council Member Peotter recommended continuing the entire budget to the next Council meeting. No other Council Member expressed support for doing so. Council Member Peotter proposed reducing the allocation for additional Police Officers from $800,000 to $200,000. No other Council Member expressed support for doing so. Council Member Peotter proposed delaying the Corona del Mar Fire Station/Library project to the 2016/2017 budget cycle. Under a straw vote, Council Members Duffield, Muldoon and Peotter voted in support. Council Member Peotter proposed adding $5 million to the budget for the Balboa Island seawall repair. In response to Mayor Pro Tem Dixons question as to where the money would come from, Council Member Peotter believed that by, delaying the Corona del Mar Fire Station /Library, the funds could be used at this time for seawall repair. In response to Mayor Pro Tem Dixon's questions, Public Works Director Webb addressed the consequences of delaying the funding for the Library, noting that there would be a shortfall next year. He added that Council often puts money in the budget mid -year. He reported the money from the sale of the Balboa Theater has already been reassigned. He indicated that, once staff knows what Council wants to do, staff can return with a budget adjustment. He added that the seawall project must go through the Coastal Commission process so there will be a lot of time before funding is needed for the project. Council Member Peotter believed that, if the seawall project is considered a maintenance project, it will not need to go through the Coastal Commission process. He added that the goal is to move it forward now so it can coincide with work on the bridge. Public Works Director Webb reported that the problem is that they are different projects and the Park Avenue Bridge is currently before the Coastal Commission. Additionally, the Park Avenue project budget includes Federal funding and must comply with a predetermined schedule. Council Member Peotter asked to accelerate the seawall project and stated that, if the City can get the bridge and seawall schedules to coincide, there will be less impacts to Balboa Island residents. Council Member Curry expressed the opinion that the proposal is financially irresponsible and that the Library might be sidetracked and possibly aborted with this proposal. Volume 62 - Page 328 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Council Member Peotter commented on trying to change things now to reflect different priorities and suggested accelerating the seawall. To clarify, Council Member Muldoon referenced the West Newport Beach Community Center project and City Manager Kiff reported that there is a line item for the project for $450,000. Council Member Muldoon believed that the Community Center would be used by Costa Mesa residents and suggested having Costa Mesa contribute $5 million toward that project. Under a straw vote, Council Members Duffield, Muldoon and Peotter voted in support. Council Member Peotter addressed reduction of the Business License fee, but stated that he will postpone that request since there is no money for doing so. Council Member Duffield suggested changing allocations for the Central Avenue Public Pier from $400,000 to $100,000, and Harbor Piers and Gangway Maintenance (Page 40 and 44 of the CIP) from $$00,000 to $150,000. Mayor Pro Tem Dixon noted that those funds come out of the Tidelands Fund. In response to Council Member Curry's questions, Public Works Director Webb reported that the budget for the Central Avenue Public Pier may be high, but noted that the remaining unused money goes back into the Tidelands Fund. Regarding gangways, he reported that they need floats and some work, but that a scope has not yet been developed. He stated that staff can project the design and put the matter up for bid so that real costs are known. Mayor Pro Tem Dixon indicated that, if the City saves a little, it might have enough to allocate $650,000 toward the seawall project. Mayor Selich stated that he is uncomfortable with the proposal and that there is a problem with pulling numbers out of the air without obtaining any cost estimates. He asked whether it would be best to pull the matter out of the budget. He added that Council needs to know where the City is headed. Without objection, City Manager Kiff suggested zeroing -out both line items and returning to Council with a proposal based on the actual costs through budget amendments. Mayor Selich announced that the Checklist has been straw voted. Motion by Council Member Curry, seconded by Mayor Pro Tem Dixon, to a) conduct a straw vote on the budget checklist which will be included in the City's Fiscal Year 2015 -16 Approved Budget; b) approve Resolution No. 2015 -43, A Resolution of the City Council of the City of Newport Beach Adopting the Budget for the 2015 -16 Fiscal Year; and c) approve the list of projects, scope (as measured in dollars), and timing contained within the Facilities Financial Plan (FFP). Council Members Muldoon and Peotter explained why they will be voting against the motion. Council Member Petros addressed crime on the Peninsula and noted that, according to the Chief of Police, crimes have increased on the Peninsula and the City should do everything it can to address them. The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Mayor Pro Tem Dixon, Mayor Selich Noes: Council Member Peotter, Council Member Muldoon, Council Member Duffield Volume 62 - Page 329 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Q City Manager Kiff thanked the Finance staff for preparing the budget and hoped that, with the new software, the process will be clearer going forward. 22. Illuminated Street Name Signs Design at Signalized Intersections [100 -2015] Deputy Public Works Director Vukojevic provided a PowerPoint presentation to address prior Council direction and details of the proposal. In response to Mayor Pro Tem Dixon's question, Deputy Public Works Director Vukojevic addressed the project schedule and timing. In response to Council Member Petros' comment regarding cracked signs, Deputy Public Works Director Vukojevic discussed signage materials used. Motion by Council Member Petros, seconded by Council Member Peotter, to approve the new standard design for illuminated street name signs at signalized intersections. Jim Mosher suggested that, rather than placing a sail or seal on the signs, the signs should include block numbers. Mike Glenn requested and received clarification relative to the price difference and material used on the new signs. Discussion followed regarding replacing the signs on an as- needed basis and as part of the signal project planned for the coming year. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 23. Approve Amendment No. One to the Landscape Agreement for Parks and Facilities Maintenance with Pinnacle Landscape Company (C -5550) [381100 -2015) Municipal Operations Co- Director Pisani provided the staff report. Motion by Council Member Petros, seconded by Mayor Pro Tem Dixon, to approve Amendment No. One with Pinnacle Landscape Company for landscape maintenance services of parks and facilities at an increased total compensation of $448,471.69 for the remaining four years of the agreement, and authorize the Mayor and City Clerk to execute the amendment. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 24. November 8, 2016 General Municipal Election - Ballot Measure [391100 -2015] Council Member Curry addressed Proposition 62, noting that it did not apply to Charter cities. He addressed requirements for placing matters on the ballot and explained the item. Volume 62 - Page 330 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Motion by Council Member Curry, seconded by Council Member Peotter, to adopt Resolution No. 2015 -44, A Resolution of the City Council of the City of Newport Beach Calling and Giving Notice of the Holding of a General Municipal Election to be Held on Tuesday, November 8, 2016, and Ordering the Submission of a Proposed Amendment to the City Charter to the Electors, the `Newport Beach Taxpayer Protection Act" (Measure _ - Require 5 of 7 Votes of the City Council to Propose Taxes). Jim Mosher questioned the need to take action at this time. He suggested sections under which the matter should be placed and commented on limits relative to debt and bond measures. He also commented on the format and style of the Resolution. Council Member Peotter commented positively on the matter and asked regarding the actual direct argument signatories to the item. It was noted that Council will make the final choice relative to signatories during a future Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich 25. Tidelands Management Committee and the Harbor Commission: Discussion of Consolidation or Other Changes [100 -2015] City Manager tiff referenced an attachment to the staff report and reported that staff would need to bring the matter back to Council with a formal resolution incorporating any changes. Council Member Duffield believed that the Tidelands Management Committee (TMC) should be sunsetted since there are duplications in duties with the Harbor Commission. He suggested that the Harbor Commission also take on beach, pier and Semeniuk Slough issues, and that the City continue to manage Beacon Bay. He added that the Harbor Commission needs a budget and commented on the importance of the Harbor to the City. He addressed Marina Park, dredging, and preserving zoning along the waterfront John Corrough commented positively regarding Council Member Duffield's proposal. Jim Mosher agreed with Council Member Duffield's comments and believed that some roles between the Harbor Commission and the Parks, Beaches and Recreation Commission also overlap. Discussion ensued regarding control of the Tidelands Capital Fund. Motion by Member Peotter, seconded by Council Member Muldoon, to direct staff to return to the City Council with a resolution to combine the Tidelands Management Committee and the Harbor Commission. Council Member Curry stated that he would be happy to support a narrowly- drafted reallocation of responsibilities so that the Harbor Commission is fully responsible for all of the activities in the Harbor. However, he addressed Marina Park and believed that it is inappropriate for a Commission to supervise its operation. He added that combining beaches with the Harbor is not appropriate and addressed Beacon Bay and noted that Council is stepping on many jurisdictional boundaries between Harbor Resources, public safety and Parks, Beaches and Recreation. He indicated that the discussion is much more far - reaching than he would be prepared to approve. Volume 62 - Page 331 City of Newport Beach Study Session and Regular Meeting May 26, 2015 Council Member Petros spoke in support of Council Member Duffield's suggestion to review the function of the Harbor Commission and folding in Tidelands Management Committee roles that are appropriate. However, he disagreed with giving the Harbor Commission its own budget. In response to Mayor Pro Tem Dixon's question, City Manager Kiff suggested picking two Council Members to work with staff to bring a proposal back to Council. Council Member Peotter clarified that the motion is to fold the duties of the Tidelands Management Committee into the Harbor Commission. Mayor Selich stated that he is not in favor of rolling all of the Tidelands Management Committee duties into the Harbor Commission. He spoke in support of fine- tuning the duties and reported that the Tidelands Management Committee also deals with beaches, upland tidelands, the Balboa Bay Resort, Beacon Bay, and leases with different organizations in the Harbor. He pointed out that these are not Harbor properties and stated that he does not support eliminating the Tidelands Management Committee at this time. Substitute motion by Council Member Curry, seconded by Mayor Pro Tem Dixon, to have the Mayor appoint two Council Members to work with staff to review /refine the duties of the Tidelands Management Committee and the Harbor Commission, and return to Council with appropriate recommendations. The substitute motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Noes: Council Member Peotter 26. Request for Proposals for Tree Maintenance Services (cont. from 5/12/2015) [100- 2015] City Manager Kiff addressed the matter's background, the issue before Council at this time, concerns with the bid process, and options for Council consideration. In response to Mayor Pro Tem Dixon's question, Municipal Operations Co- Director Pisani reported that the service will be for all of the City's trees. He commented positively on the work performed by Great Scott. In response to Council Member Peotter's question, City Attorney Harp stated that Council does not have to go forward with the Request for Proposals (RFPs) if the bids are opened. He addressed the applicability of prevailing wages. Pat Mahoney, President of West Coast Arborists, commented on the previous and current contracts and believed that their proposal will reduce rates from what the City is currently paying. He questioned increases in the contract amount and hoped that Council will open the bids and make its decision accordingly. Discussion followed regarding prevailing wage. Scott Griffiths, Great Scott Tree Service, clarified the number of trees maintained during the last two fiscal years and noted that some of the work that they did was "catch up" work left by the previous vendor. He addressed the tree pruning cycle and noted that the City is now back on track. He believed that costs will be significantly less this year. He stated that he cannot understand why the City went back out to bid when Great Scott has done nothing wrong. Volume 62 - Page 332 City of Newport Beach Study Session and Regular Meeting May 26, 2015 In response to Council Member Peotter's question, Mr. Griffiths addressed the prevailing wage used in the new proposal. Discussion ensued regarding the prevailing wage used under the previous contract and the current contract. Mr. Griffiths hoped that Council will take into consideration the work that Great Scott has already done for the City. Discussion followed regarding vendor responsibilities. Council Member Curry provided a history of the matter and suggested opening the bids to make a decision for what is in the best economic interest of the City. In response to Council Member Peotter's question, Municipal Operations Co- Director Pisani explained the work done by Great Scott. He added that Great Scott has done the work correctly. Motion by Council Member Peotter, seconded by Mayor Pro Tom Dixon, to direct staff to reject the bids and return them unopened to the vendors. Council Member Curry commented on the need to save money and stated the only way to do so is to open the bids and perform an analytical comparison of the vendors. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Petros, Council Member Duffield, Council Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich Noes: Council Member Curry XXI. MOTION FOR RECONSIDERATION - None NMI. ADJOURNMENT - Adjourned at 10:22 p.m. in memory of Eva Marguerite Parsons 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 May 21, 2015, at 4:00 p.m. The amended agenda 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 May 22, 2015, at 10:10 a.m. Recording Secretary Mayor Volume 62 - Page 333