HomeMy WebLinkAbout06/09/2015 - Study Session / Regular MeetingCity Council Minutes
Study Session and Regular Meeting
June 9, 2015
I. ROLL CALL - 4:30 p.m.
Present: Council Member Peotter, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Excused: Council Member Petros
II. CURRENT BUSINESS
SSI. Clarification of Items on the Consent Calendar - None
SS2. Technology Update
Assistant to the City Manager Houston provided a PowerPoint presentation on improving
customer service through technology. He addressed examples of the technology and
deferred to staff for a presentation.
Public Information Specialist Locey reviewed the City's existing website and related
statistics, the need for refreshing it, limitations in terms of displaying information and
details of the new website design, navigation and features.
In response to Mayor Selich's question, Public Information Specialist Locey reported that
information regarding seawalls is available under the "Other Important Issues" section.
Mayor Pro Tem Dixon commented positively on the proposed improvements and reported
she currently enjoys access to the City calendar at the top of the page. Public Information
Specialist Locey presented other ways by which to access the calendar.
Council Member Curry commented on the Government link and on contacting specific
people in the City. Public Information Specialist Locey added that all contact information
is also available through the Department link.
In reply to Council Member Peotter's question, Public Information Specialist Locey
reported that the search engine used for the City's webpage is Google. Council Member
Peotter reported that he finds things more readily by going through Google, directly, rather
than going through the City website. Public Information Specialist Locey explained the use
of key information when searching the website. Assistant to the City Manager Houston
explained that the City uses the "free" version of Google and that incorporating the full
version system, would be costly. Council Member Peotter suggested changing the "Open
Government" section to "Government Transparency".
In response to Mayor Selich's question, Assistant to the City Manager Houston added that
they charge by the amount of data so for 500,000 documents they would charge $50,000 for
three years. However, the City has over 4 million documents so that cost could be up to
$300,000 to $400,000 for three years. He reported that he spoke to Google representatives
about possible discounts, without success but that he could try again, if Council so desires.
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In response to Mayor Pro Tem Dixon, Assistant to the City Manager Houston reiterated
that the Google version on the City's website is the free plug-in version and commented on
efforts and the timeline required to improve search capabilities.
Chief Building Official Jurjis presented details of iPERMIT noting it provides twenty-one
different types of services that the community can obtain online, relative to construction -
related permits. Residential building records will also be provided online, for realtors.
There will be no need to go to City Hall to obtain permits.
Systems and Administrative Manager Campagnolo provided examples of what applicants
may see as they enter into the City's iPERMIT system. In response to Mayor Pro Tem
Dixon's question, he reported that currently, access is online.
Crime Prevention Specialist Andi Querry provided details of Nixle, the Police Department's
Community Information Service.
Assistant to the City Manager Houston presented details of My Neighborhood Map and the
MyNB App. In reply to Mayor Pro Tem Dixon's request, he provided information on the
number of people that have downloaded the MyNB App and that have sent in requests for
service.
Council Member Curry commended staff for the progress that has been made throughout
the City Departments in using technology and making the City more transparent and
helpful to the community. He acknowledged the previous Technology Taskforce and the
City's investments in technology as being crucial to the improvements currently being
made.
Council Member Duffield congratulated staff for its work and efforts and encouraged the
public to use the City's websites and its features.
SS3. Wastewater Rate Study
City Manager Kiff introduced the item noting it was continued from the last City Council
Study Session.
Municipal Operations Department Acting Co -Director Murdoch introduced Consultant
Sima Mostafaei and John Farnkopf with HF&H Consultants and provided a PowerPoint
presentation. He addressed background and funding of waste water operations.
Sima Mostafaei, HF&H Consultants addressed revenue requirements, sewer fund balance
and current sewer rate structure.
Brief discussion followed regarding the location of flat rate customers and Newport
Coast/Irvine Ranch Water District (IRWD) areas.
Ms. Mostafaei continued with the presentation, addressed proposed rate structure
modifications, a comparison of current and proposed sewer rates, residential monthly bill
comparison, nonresidential monthly bill comparison and comparison with neighboring
agencies.
In response to Mayor Selich's question, Municipal Operations Department Acting Co -
Director Murdoch listed water- and sewer -servicing agencies.
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In reply to Council Member Peotter's request, Ms. Mostafaei explained that the graph
showing the comparison with neighboring agencies is indicative of economies of scale. As
the population gets larger, it becomes cheaper for agencies to convey the collection and
treatment services for customers. She added that it is correlated to the monthly bill.
City Manager Kiff stated that it is a trend line of the items in the graph.
Ms. Mostafaei added that the treatment component has been left out in calculating monthly
bills.
Municipal Operations Department Acting Co -Director Murdoch referenced Attachment B
as listing other customer comparisons and addressed next steps including Proposition 218
procedures.
In response to Mayor Selich's inquiry, Municipal Operations Department Acting Co -
Director Murdoch identified eligible protestors.
Council Member Muldoon referenced revenue requirements and in reply to his inquiry,
Municipal Operations Department Acting Co -Director Murdoch explained capital
improvement requirements and gradually -increasing rates. He addressed the Water and
Wastewater Master Plans and noted they are on a five-year review cycle.
Council Member Muldoon indicated he would like to discuss which other categories can be
reduced so that a rate increase will not be needed. Municipal Operations Department
Acting Co -Director Murdoch reported that staff will continue to look at services that can be
outsourced in order to be cost-effective.
In response to Council Member Peotter's question, Municipal Operations Department Co -
Director Murdoch reported that the Master Plan was updated in 2009/2010. He added that
staff felt it prudent to look at operations, first, before raising rates and addressed the
processes necessary to reach the goals of the Master Plan.
Council Member Peotter noted that the scope of the Master Plan hasn't changed and that
staff has made adjustments in other areas prior to implementing a rate increase. In reply
to his question, Ms. Mostafaei reported that under the recommended rate structure,
customers will pay the same rate for a 5/8 inch and the 3/4 inch meters. Municipal
Operations Department Acting Co -Director Murdoch added that the capital component is a
fixed fee.
In response to Mayor Pro Tem Dixon's question, Municipal Operations Department Acting
Co -Director Murdoch explained possible scenarios related to declining reserves. Mayor Pro
Tem Dixon commented on the importance of looking at the City's wastewater
infrastructure, going forward.
City Manager Kiff stated that Mr. Murdoch believes the amount of staffing currently
available to do the work in the community is about as low as he would like to go. He added
that the service is managing the collection system and that the City does not do any
treatment but manages pumps and pipes. Additionally, he stated that staff can look at the
possibility of whether outsourcing can produce efficiencies.
Council Member Curry added that because the City has reduced staffing by more than 20%,
in terms of wastewater personnel, and because the City has implemented a new pension
system for new hires and it has taken steps to increase efficiencies, the City has been able
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to maintain the current fee, as long as possible. It should not be surprising that it will cost
more money now and in the future, to replace the sewer infrastructure in the City. He
noted that it is not arbitrary, especially when considering the rates of other communities.
He stated that the City has an outstanding feeder system that is connected to the Orange
County Sanitation District (OCSD) and commented on the costs of having to do these
projects. He commented on the need to continue investments so that the City can continue
to have the quality infrastructure it has had over the years.
Mayor Selich noted that residents pay collection charges through the City and treatment
charges through the property tax bill and in answer to his inquiry, Municipal Operations
Department Acting Co -Director Murdoch compared the practice to that of the City of Irvine
and other agencies. He added that the chart shown under revenue requirements catches
the City up to what it should be investing.
Ms. Mostafaei stated that the appendix in the report illustrates the ten-year financial plan.
Mayor Pro Tem Dixon commented on Attachment B and in response to her question,
Municipal Operations Department Acting Co -Director Murdoch provided examples of
possible rates, depending on water usage, over the years.
Mayor Selich spoke regarding the drivers including the actual costs of constructing
facilities and the 50% balance. In reply to his question, Municipal Operations Department
Acting Co -Director Murdoch explained the rationale for the 50% balance noting it was a
number picked by former Council Member Henn and the Finance Committee.
Responding to Mayor Selich's inquiry, Ms. Mostafaei reported that there is a third
component including maintaining reserves, building the reserve for capital and the loss of
revenue from cutbacks in water -use. She added that half of the wastewater enterprise's
rate revenue comes from the consumption charge; in order to keep the reserves at a healthy
level, a lot of the rate increase in the first year goes towards maintaining the reserve
because of the decline in revenue.
Municipal Operations Department Acting Co -Director Murdoch stated the consumption
rate takes into account what the City is required to do in terms of State mandates for water
conservation. He added that if Council wants staff to look at additional rate -smoothing, it
can.
Council Member Curry stated that if the City does not adjust rates and comes close in
hitting the 25% reduction in usage, wastewater revenues will fall off 25%. The City will
then see a substantial loss of revenue that would otherwise fund the Capital Improvement
Program.
In reply to Council Member Peotter, Municipal Operations Department Acting Co -Director
Murdoch reported it will also affect the amount of wastewater sent to OCSD.
In response to Mayor Selich's inquiry, Municipal Operations Department Acting Co -
Director Murdoch addressed how other agencies are dealing with this matter and what the
water conservation mandates are doing to revenue accounts. Mayor Selich added that
deferred maintenance costs more, in the long run, than regular maintenance on facilities.
Council Member Curry added that the City pays substantial fines for sewage spills that end
up on the beach. Mr. Murdoch noted that small spills can be somewhere in the $35,000
range and reported that the State Water Resources Control Board will be increasing fines.
He added that the City provides mutual aid to neighboring communities and assists them
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with issues regarding alleviating spills in the Bay. He addressed grease interceptor
inspections and noted that staff has been seeing an increase in grease in the sewer lines.
He reported that the City will take an aggressive approach in working with restaurants
and educating their staff in an attempt to reduce the City's maintenance costs.
City Manager Kiff indicated that he will probably have staff look at an operational analysis
before bringing this matter back for a Regular meeting and action. He added that an
operational analysis would help decide if the City should do this or outsource it.
Mayor Selich stated he would not be in favor of outsourcing and that given the importance
of water -quality and the City's investments, the City needs to maintain its own destiny.
Council Member Curry disagreed, noting that if staff is going to do that kind of analysis, it
needs to be a thoughtful and methodical analysis, potentially involving jurisdictional and
governance issues and a significant cost analysis. He added that there is nothing that
prevents the City from rolling fees back if so warranted. Council Member Muldoon stated
that staff should look at all options, including outsourcing and indicated support for more
efficiency in government. He added that he would like to further look at the one-year, no
revenue scenario and also see what neighboring jurisdictions are doing.
III. PUBLIC COMMENTS - None
City Attorney Harp announced that the City Council will adjourn to Closed Session to
discuss the items as listed in the Closed Session agenda and read the titles.
IV. CLOSED SESSION - 5:58 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.
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 Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Excused: Council Member Petros
VIII. CLOSED SESSION REPORT - City Attorney Harp announced that no reportable actions
were taken.
IX. PLEDGE OF ALLEGIANCE - Mayor Pro Tem Dixon
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X. INVOCATION - Reverend Sian Wiltshire, Orange Coast Unitarian Universalist Church
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)
Mayor Pro Tem Dixon reported attending the restaurant and bar owners' second voluntary
compliance meeting and commented on the positive steps operators have put in place to ensure
Newport Beach is a welcoming community for businesses, residents and tourists. She addressed
their voluntary efforts to ensure employees are License Education on Alcohol & Drugs (LEAD)
certified and guard -card certified and to improve communications among themselves and with the
Police Department.
Mayor Pro Tem Dixon highlighted new Library programs including the 1,000 Books before
Kindergarten program, the Newport Beach Art Exhibition on June 13th from 1:00 to 6:00 p.m. at
the Civic Center lawn and announced that the Balboa Village Advisory Committee (BVAC) will
meet June 10th at 4:00 p.m. at ExplorOcean to discuss the residential parking permit program.
Council Member Muldoon reported participating in the Balboa Island Parade and thanked
volunteers, the Grand Marshall and Council colleagues. In response to his inquiry, City Manager
Kiff reported that at Council's next meeting, there will be a discussion about mooring rates and the
Civic Center audit.
Council Member Duffield reported participating in the Sea Scout Base Achievement Awards and
congratulated Tim Hogan for his work and efforts in promoting sailing in high schools.
Council Member Curry reported attending the Athletic Awards Dinner sponsored by the Chamber
of Commerce, the Concert on the Green by Stone Soul, Supervisor Moorlach's open house, the
SPON annual meeting, and participating in a press conference with Supervisors Rohrbacher,
Sanchez and Lowenthal, along with Council Member Billy O'Connell from Huntington Beach on
the subject of oil spills on California beaches and the importance of technology and investing in
infrastructure to keep area beaches pristine.
Mayor Selich reported attending a fundraiser for the Ben Carlson statue, at the Balboa Bay Resort,
the Athletic Awards Dinner, the Corona del Mar 5K, the Wooden Boat Festival, the Balboa Island
Parade and the Concert on the Green. He announced the Balboa Island Historic Home Tour on
June 20, 2015.
XIV. PUBLIC COMMENTS ON CONSENT CALENDAR
City Clerk Brown reported that amendments have been presented to Council and placed in the
vestibule for Item No's. 5, 7, 9 and 12.
Lieutenant Mike Jansen, OC Sheriff/Harbor Patrol, commented on Item No. 12 (Amendment No.
One to the Cooperative Agreement between the County of Orange and the City of Newport Beach
for Mooring Management Services) and in support of having his agency continue its services to the
City by managing the Sheriffs Department and mooring agreements as well as Harbor Patrol
services. He added that if in six months, the item goes out for bid, the OC Sheriff/Harbor Patrol
will be participating.
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NO
Don Cole commented on Item No. 4 (Regulating and Limiting Vessels Propelled by Water above the
Surface of Newport Harbor) and reported that Jetpack America continues to violate the conditions
of their permit extension. He added that they continue to operate two flyers at a time, operate
tandem and past 5:00 p.m. Additionally, they operate close to residences and he stated that there
have been many "close calls" with other Harbor users. He reported that pictures and videos have
been sent to Council, along with a letter and complained of increased noise due to the operation.
He added that after attending a recent Harbor Commission meeting, it was suggested that he
share his issues with Council. He suggested that the permit be revoked until Jetpack America can
comply with its terms.
John Stanley, Jetpack America, noted that the company has made adjustments to comply with the
City's regulations. He added that the company is currently training staff and out rigging its
equipment and noted that in time, it will be better -prepared to comply. He noted that some of the
new processes require some "fine-tuning" and that currently, they are allowed to operate with
tandem pilots. Moving forward, he noted that Jetpack America will continue to abide by the permit
requirements and asked that Council allow time for.them to refine their process and train staff.
CONSENT CALENDAR
A. READING OF MINUTES AND ORDINANCES
1. Minutes for the May 26, 2015 Study Session and Regular Meeting [100-20151
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. ORDINANCE FOR INTRODUCTION
3. Non -Exclusive Solid Waste Franchise with Genesis Dispatch, Inc. [421100-20151
a) Adopt Resolution No. 2015-45, A Resolution of the City Council of the City of Newport
Beach, California, Declaring its Intention to Conduct a Public Hearing to Consider the
Granting of a Non -Exclusive Solid Waste Franchise to Genesis Dispatch Inc., a
California Corporation;
b) Direct the City Clerk to publish Resolution No. 2015-45 within 15 days of its adoption;
and
c) Introduce Ordinance No. 2015-16, An Ordinance of the City Council of the City of
Newport Beach, California, Granting a Non -Exclusive Solid Waste Franchise to Genesis
Dispatch Inc., a California Corporation, to Provide Solid Waste Collection Services upon
the City Streets and within the City of Newport Beach, and pass to second reading on
June 23, 2015.
C. ORDINANCES FOR ADOPTION
6. Minor Amendments to the Newport Beach Zoning Code Ordinance — Second
Reading (PA2015-056) [100-20151
Conduct a second reading and adopt 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).
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D. RESOLUTIONS FOR ADOPTION
8. Changes to the Fiscal Sustainability Plan and Council Policy F-28, Facilities
Financial Planning Program 1100-20151
a) Adopt Resolution No. 2015-47, A Resolution of the City Council of the City of Newport
Beach, California, Amending the Fiscal Sustainability Plan for Newport Beach City
Government; and
b) Adopt Resolution No. 2015-48, A Resolution of the City Council of the City of Newport
Beach, California, Amending City Council Policy F-28 Regarding the Facilities
Financial Planning Program.
Council Member Peotter voted NO on Item 8a.
9. Petition Certification and Request for Funding for Proposed Underground
Assessment District No. 117 (Area Bounded by: Bayside Drive, Avocado Avenue,
Coast Highway, and Carnation Avenue) [100-20151
a) Adopt Resolution No. 2015-49, A Resolution of the City Council of the City of Newport
Beach, California, Accepting Petition of Assessment District No. 117; and
b) Approve Budget Amendment No. 15BA-050 authorizing an advance from the General
Fund in the amount of $450,000 to Assessment District No. 117 and appropriate
$270,000 to Account No. 74117-9810 for electrical utility design by SCE, $30,000 to
Account No. 74117-9811 for phone system design by AT&T and $150,000 to Account
No. 74117-9812 for assessment engineering services. As amended, authorize the City
Manager to execute documents necessary to implement these expenditures. Funds
remaining in this fiscal year will be carried forward to FY 16 per Council Policy F-3.
Council Member Curry recused himself from this Item because he owns stoch in
AT&T.
Council Member Muldoon recused himself from this Item because of a business
interest.
10. Resolution No. 2015-50: Adopting a Memorandum of Understanding with the
Newport Beach Lifeguard Management Association (C-2058) and Approving
Salary Range [38/100-20151
Adopt Resolution No, 2015-50, A Resolution of the City Council of the City of Newport Beach
Adopting a Memorandum of Understanding between the City of Newport Beach and the
Newport Beach Lifeguard Management Association and Adjusting the Salary Range for
Assistant Chief, Lifeguard Operations, for the period July 1, 2014 through December 31,
2017 (Staff Report Attachment A).
E. CONTRACTS AND AGREEMENTS
11. Multiple Back -Up Generators Replacement Project — Award of Contract C-6011
(CAP15-0042) [381100-20151
a) Approve the project specifications and drawings;
b) Award Contract No. 6011 to Day's Generator Service, Inc. for the total bid price of
$511,259.00, and authorize the Mayor and City Clerk to execute the Contract; and
c) Establish an amount of $51,241.00 (approximately 10%) to cover the cost of unforeseen
work not included in the original contract.
13. Professional Services Agreement to Prepare a Multi -Jurisdictional Analysis of
Impediments to Fair Housing Choice and a Five -Year Housing Action Plan (C-
6165) 1381100-20151
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Approve the Professional Services Agreement, and authorize the Mayor and City Clerk to
execute the agreement.
14. Professional Services Agreement with Schmitz & Associates, Inc. for Consulting
and Advocacy Services for the Certification of the City's Local Coastal Program
(PA2013-001) (C-6166) [381100-20151
Approve the Professional Services Agreement, and authorize the Mayor and City Clerk to
execute the agreement.
15. Approve Amendment No. One to Professional Services Agreement for Grease
Control Device Inspection Program (C-5734) [381100-20151
Approve the Amendment No. One to the Professional Services Agreement with
Environmental Compliance Inspection Services for grease control inspection device
program to increase the compensation by $123,800.00, and authorize the Mayor and City
Clerk to execute the agreement.
F. MISCELLANEOUS
16. Initiate a Zoning Code Amendment to Modify Landscape Regulations [100-20151
a) Find this action is exempt from the California Environmental Quality Act (" CEQA')
pursuant to Section 15262 of the State CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3; and
b) Initiate an amendment to Title 20 of the Municipal Code to modify the General
Landscape Standards in respect to maintenance requirements during drought
conditions.
17. Annual Measure M Fund Eligibility Requirements [100-20151
a) Adopt the Measure M Seven -Year CIP;
b) Adopt Resolution No. 2015-52, A Resolution of the City Council of the City of Newport
Beach, California, Concerning the Status of the Circulation Element and Mitigation Fee
Program for the Measure M (M2) Program, affirming that the City's Circulation
Element is in conformance with the Regional Master Plan of Arterial Highways, and
reaffirming that Council concurs with the existing Mitigation Fee Program; and
c) Direct staff to submit all necessary material to OCTA to satisfy the Measure M annual
eligibility requirements.
18. Acceptance of Grant Funding for the Community Paramedicine Pilot Project
[100-20151
a) Accept the grant funding in the amount of $50,685 to be utilized for staff training; and
b) Approve Budget Amendment No. 15BA-048 to accept grant funds from the Hoag
Memorial Hospital Presbyterian Community Benefit Program, increase revenue
estimates by $50,685 in account 2340-5066, and increase expenditure appropriations by
$50,685 in account 2340-82007.
19. Donation of Art to the City of Newport Beach [100-20151
The City Arts Commission recommends that City Council approve the acceptance of two
paintings into the City Art inventory.
20. Board and Commission Scheduled Vacancies - Confirmation of Nominees [100-
20151
Confirm the nominations made by the Ad Hoc Appointments Committee:
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Board of Library Trustees [2 vacancies/minimum 4 nominees]
Gloria Alkire
Jill Johnson -Tucker (incumbent)
William O'Neill
David She£fner
Building and Fire Board of Appeals [2 vacancies/minimum 4 nominees, however only 3
applicants]
James Anderson (incumbent)
George Crall
Khosrow (Saum) Nourmohammadi (Noor)
City Arts Commission [1 vacancy/minimum 2 nominees]
Arlene Greer (incumbent)
Jacqueline Hahn
Civil Service Board [1 vacancy/minimum 3 nominees]*
1. Roberta Fesler
2. Douglas Coulter
3. Gloria Alkire
* Pursuant to Charter Section 710, this year's Civil Service Board appointment will come
from a list of three nominees as provided by a majority of the Civil Service Board
Members. Additionally, the Civil Service Board ranked the nominees (as noted above) for
City Council consideration.
Harbor Commission [l vacancy/minimum 2 nominees]
William Avery (incumbent)
John Drayton
Parks, Beaches & Recreation Commission [2 vacancies/minimum 4 nominees]
Lee Cassidy
Laird Hayes (incumbent)
William Hossfeld
Alison Ryffel
Planning Commission [3 vacancies/minimum 6 nominees]
Hitta Mosesman
Kory Kramer (incumbent)
Jay Myers (incumbent)
Debra Stevens
Erik Weigand
Peter Zak
Motion by Mayor Pro Tem Dixon seconded by Council Member Peotter, to approve the
Consent Calendar, except for the items removed (4, 5, 7 and 12); with Item No. 9, as amended and
with Council Members Curry and Muldoon recusing themselves on Item No. 9.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Petros
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XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR
4. Second Reading of Ordinance No. 2015-13, Regulating and Limiting Vessels
Propelled by Water Above the Surface of Newport Harbor [100-20151
Council Member Duffield recused himself from this Item due to a business interest.
At Mayor Pro Tem Dixon's request, Harbor Resources Manager Miller reported that staff does
not have an issue with the tandem operation of Jetpack America but noted that they have
increased the operation to two flyers at a time. He added that in speaking with
representatives, he communicated the intent for them to keep their business model, the same,
and not to increase capacity or use. Jetpack America representatives indicated they
understood and that going forward, they will keep one jetpack operating at a time. He
addressed operating hours noting that they will operate 10:00 a.m. to 5:00 p.m. during the
summer and 10:00 a.m. to 4:00 p.m. in the winter. Additionally, he reported that they will
attempt to operate at 300 feet from docks and will move around rather than concentrate on one
area.
Discussion followed regarding obtaining resident feedback and enforcement by the Harbor
Patrol.
Mayor Pro Tem Dixon stated she will not support the matter because of increased resident
inconvenience and irritation.
Motion by Council Member Curry, seconded by Council Member Muldoon, to conduct
a second reading and adopt 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 Newport Harbor.
Ryan Eastman, Jetpack America Co -Owner, reported that the company has been making
efforts to adopt new processes, noting they are not taking any of the requirements of the permit
and policy lightly. He indicated that safety has and continues to be a priority and urged
Council to allow them to continue through the process to establish a system that works well.
Judy Cole stated that it is the nature of the activity to go fast, concentrate on flying high, spin,
and dive in the water and it is not realistic that Jetpack America will be able to stay within any
of the guidelines or restrictions, going forward.
George Schroeder reminded Council that it empowered a Harbor Commission to study this
issue and return with a recommendation to Council. He stressed that Council should trust the
Harbor Commission,
Substitute Motion by Mayor Selich, seconded by Council Member Cures, to continue
this matter to the next regularly -scheduled Council meeting, June 23rd, for full Council
consideration.
The substitute motion carried by the following roll call vote:
Ayes: Council Member Curry, Council Member Muldoon, Mayor Selich
Noes: Council Member Peotter, Mayor Pro Tem Dixon,
Recused: Council Member Duffield
Absent: Council Member Petros
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5. Adoption of Newport Beach Municipal Code Chapter 14.16 (Water Conservation and
Supply Level Regulation) [100-2015]
Council Member Peotter commented on the amendments and modifications and suggested
eliminating duplication of sentences and adding a third "Whereas, the Board, as ordered by
Governor Brown on his war bias aeainst suburbia and in favor of urban development, has
advised... and, the next "Whereas, in order to meet this unfair mandate, the City Council..."
Motion by Council Member Peotter, seconded by Council Member Muldoon, to make
modifications as suggested above and conduct a second reading and adopt amended Ordinance
No. 2015-14, An Ordinance of the City Council of the City of Newport Beach,
California, Amending Chapter 14.16 of the Newport Beach Municipal Code Pertaining to Water
Conservation and Supply Level Regulations.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Petros
7. Amendments to City Council Policy A-6 (Open Meeting Policies) [100-2015]
Council Member Peotter suggested making changes to indicate that if Council wants to
agendize an item, instead of requesting it at a meeting and voting on it as to whether it should
be on a future agenda at the next meeting; that a Council Member be able to make the request,
offline, to the City Manager or if "three Members of the City Council wish to...".
Motion by Council Member Peotter, seconded by Council Member Muldoon, to make
modifications as suggested above and adopt as amended Resolution No. 2015-46, A Resolution
of the City Council of the City of Newport Beach, California., Adopting Amended City Council
Policy A-6.
Council Member Curry stated this is a solution in search of a problem and felt that there will
be a lot of issues placed on the agenda for political posturing and will have little relevance to
what Council is doing. He added that he will not support the motion.
Council Member Peotter stated that the purpose of the lower threshold is to allow more things
to come forward and allows the benefit of a staff report before people start dealing with the
merits of an issue. The intent is to facilitate more discussion on other things.
Council Member Muldoon indicated that three Members prevents abuse and lowers the
threshold for free speech. He added that it encourages healthy debate by Council.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Duffield, Council Member Muldoon, Mayor
Pro Tem Dixon
Noes: Council Member Curry, Mayor Selich
Absent: Council Member Petros
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12. Approve Amendment No. One to the Cooperative Agreement between the County of
Orange and the City of Newport Beach for Mooring Management Services in
Newport Harbor for Six Months, and Direct Staff to Issue an RFP for Mooring
Management Services (C-4569) [381100-20151
Council Member Duffield stated that the Harbor Master has done a good job and noted that
their costs have increased. He stated that it would be appropriate to have the Harbor
Commission review the RFP, if it goes out to bid.
Motion by Council Member Duffield seconded by Council Member Peotter, to approve
Amendment No. One to the Cooperative Agreement between the County of Orange and the City
of Newport Beach for Mooring Management Services in Newport Harbor for Six Months, and
Direct Staff to Issue an RFP for Mooring Management Services (C-4569) and having the
Harbor Commission review the RFP in terms of writing the scope of work.
Council Member Curry commented on managing the mooring fields and on potential limiting of
the amount of people that can respond to the RFP.
Council Member Duffield noted that the last RFP did not focus on the 24/7 issue. He stated
that the Harbor Commission may come up with solutions and ideas that may benefit staff.
City Manager Kiff stated that it is reasonable that mooring administration is different than
law enforcement. It may not have to be 24/7, especially with Marina Park, active. He clarified
Council Member Duffield's request that the Harbor Commission weigh in on the RFP, and that
it is firm as to the expected scope of work.
Mayor Selich noted that they are considering a different scope of service than what currently
exists.
Council Member Duffield added that today, a sea lion jumped into a Sierra 36 vessel, all the
way into the cockpit and commented on the related property damage.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Duffield, Council Member Muldoon, Mayor
Pro Tem Dixon, Mayor Selich
Noes: Council Member Curry
Absent: Council Member Petros
XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Arthur Jeppe, member of St. James the Great Episcopal Church, spoke in objection to the sale of
the church and the building of condominiums in its place. He provided background of the sale thus
far, and reported that every effort is being made to resist the sale of the church at every possible
level. He added that should the church be sold, every effort will be made to resist the zone change
to allow the church to be demolished for the development of condominiums. He stated that the
elimination of a long-established, religious community and church and the replacement of that by
high-density, high traffic, high water -use condominium developments makes no sense.
Kathleen Cray, Member of St. James the Great Episcopal Church, spoke positively on the
accomplishments of Bishop Bruno. She reported being recently notified of the sale of the church
and spoke in opposition to same.
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Ann Parker, Member of St. James the Great Episcopal Church, commented positively on the
Wooden Boat Show and suggested that the Arts Commission consider buying one and placing it at
City Hall. Additionally, she spoke regarding her family's involvement in the church and in
opposition to it being sold. She noted the need for residents and the City to get involved to help
them save the church. She urged that Council help protect the Peninsula. Ms. Parker noted that
the area is under -parked and questioned adding high density with increased water use to same.
She added that City employees and various groups use the church parking lot during events and
announced a town hall meeting at the old City Hall on June 15th at 6:00 p.m.
Drew Wetberholt thanked Mayor Pro Tem Dixon for addressing the alcohol. and crime issues on the
Peninsula and spoke in support of adding four additional Police Officers to the area. He thanked
Mayor Selich, Council Members Curry and Petros, as well as Police Chief Johnson; listed crime
statistics in the Peninsula and expressed concerns with the statistics presented previously by
Police Chief Johnson. Additionally, he expressed disappointment at Council Members Duffield,
Muldoon and Peotter noting they have shown little support for issues on the Peninsula and
encouraged them to support the community more and not special-interest groups that do not have
the interest of the City or the Peninsula.
Council Member Muldoon noted that he did not vote against the line item referenced by the
previous speaker adding that he supported adding Police Officers to the Peninsula.
George Schroeder commented on crime problems on the Peninsula and in support of increasing the
number of Police Officers in the area. He asked Council Member Peotter to change his opinion
regarding the Peninsula noting that his highest priority should be public safety. Additionally, he
commented on the West Newport Beach Community Center noting that because it is close to Costa
Mesa, doesn't mean the City should incorporate it into Costa Mesa,
Cindy Koller thanked Mayor Pro Tem Dixon for taking the lead in reducing crime on the Peninsula
and expressed gratitude for the four new Police Officers in the area. She added that they will be
funded by increased parking fees and have no impact on the City's budget. She noted that the City
has come a long way, but there is still, a long way to go. Ms. Koller referenced Council Member
Peotter's comments at the previous budget discussion and noted that he expressed to her that
business always comes first, before residents and that anyone who applies for a liquor license
should be able to get one. She suggested the formation of a BID, as what was done in the City of
Pasadena and recommended that Council Member Peotter take charge and work with the City to
have restaurant and bar owners pay for their public safety services.
Council Member Peotter stated he was misquoted, that he never said business is more important
than residents and that anyone who applies for a liquor license should be able to get one. He
explained his efforts and stated that because his solution does not agree with others' solutions does
not mean that he is against public safety.
Catherine Pepys, advocate for the Alzheimer's Association, Orange County Chapter, reported that
June is Alzheimer's and Brain Awareness Month, presented statistics regarding Alzheimer's and
commented on the services and programs provided by the Association. She asked Council to
participate in Alzheimer's and Brain Awareness Month by wearing purple and urged those
interested in obtaining more information/help to contact the Association at 1-800-272-3900 or visit
www.alz.org/oc.
Paul Matheis referenced his prior request to Council to seek a grand jury investigation into the
improper leak of a confidential memorandum to a news reporter regarding an employment matter
involving an Assistant City Manager where he opined that an investigation by the City Attorney or
any of the three direct reports to the Council, would be seen as biased by the public. He indicated
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City of Newport Beach
Study Session and Regular Meeting
June 9, 2015
that the numerous lawsuits and costs related to litigation and settlements by the City are
symptomatic of a systemic problem. Additionally, he commented on an existing vacancy in the
Civil Service Board and stated it provides an opportunity to bring in corrective action for
maintaining fidelity to the City Charter and improving issues of trust and suggested appointing a
woman to the Board to maintain balance.
Don Cole, commented on the need for a Council liaison to the Harbor Commission and suggested
Council Members rotate with that responsibility to help coordinate communication between the
Commission and Council.
Larry Leifer spoke regarding the need for additional Police protection in the West Newport area
and thanked Mayor Pro Tem Dixon and Police Chief Johnson for their efforts adding that the
entire Council should recognize the needs in the Peninsula area.
XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES
Council Member Curry announced that the Finance Committee will meet Thursday, June 11th, at
4:00 p.m.
XIX. PUBLIC HEARINGS
21. Conduct a Public Hearing and Adopt Resolution for Level Three Water Supply
Shortage [100-20151
Municipal Operations Acting Co -Director George Murdoch provided a staff report addressing
background and activities related to declaring a level three water supply shortage. He added
that residents can obtain additional information on the City's website.
In reply to Council Member Curry's inquiry, Municipal Operations Acting Co -Director Murdoch
reported that the State requires the City to reduce 28% of water usage. The City's only tool to
do that is to use its Municipal Code regulations to adopt a level three water supply shortage
and use regulations to meet the goals of the State.
In response to Council Member Muldoon's question, Municipal Operations Acting Co -Director
Murdoch reported that the Governor ordered the State Water Control Board to adopt the
emergency regulations which were adopted May 1.5th by the Office of Administrative Law. He
added that the City's written material will indicate this is an action mandated by the State.
Mayor Selich opened the public hearing.
Marianne Zippi commented on her efforts at reducing water -consumption through the years,
the State's daily waste of water, and suggested having the City Attorney get together with
other City Attorneys to fight this in court. She asked whether the City has the ability to fight
this in court and what is expected from individual residents.
Municipal Operations Acting Co -Director Murdoch explained that for residents that have done
all they can to conserve water, there is a mechanism in place that will provide relief from
compliance. Information regarding that process will be provided in a mailer to residents and is
available on the City's website.
City Attorney Harp stated that engaging the government against an emergency order would
probably not be successful.
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Council Member Muldoon reported that the challenge has been adjudicated already. City
Attorney Harp stated there have been challenges on similar types of orders without success.
Hearing no further testimony, Mayor Selich closed the public hearing.
Motion by Council Member Curry, seconded by Mayor Pro Tem Dixon, to a) adopt
amended Resolution No. 2015-51, AResolution of the City Council of the City of Newport Beach,
California, Declaring a Level Three Water Supply Shortage, setting customer usage to 75% of
Base Amount (from 2013's levels); and b) direct the City Clerk to publish Resolution No. 2015-
51 within (10) ten days of adoption of resolution.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Petros
22. Balboa Theater - Notice of Change of Intended Use and Sale, Located at 707 East
Balboa Boulevard [731100-20151
Principal Planner Campbell provided a brief background and noted the need to provide a forum
for the public to comment on this matter. He noted the attendance of Consultant Clint Whited
who is available to respond to questions from Council.
In response to Mayor Pro Tem Dixon's question, Community Development Director Brandt
outlined next steps.
Mayor Selich opened the public hearing. Hearing no testimony, he closed the public
hearing.
Motion by Mayor Pro Tem Dixon. seconded by Council Member Peotter' to a) find the
change of the intended use and sale of the Balboa Theater building and property exempt from
environmental review pursuant to Section 15312 (Surplus Government Property Sales) of the
California Environmental Quality Act Guidelines, California Code of Regulations, Title 14,
Chapter 3; b) direct staff to take necessary steps to sell the property and return to the City
Council with the purchase and sale agreement; c) direct staff to complete all necessary
administrative activities consistent with U.S. Department of Housing and Urban Development
requirements to document the disposition of the Balboa Theater; and d) direct staff to begin
planning for future use of the proceeds from the sale of the property consistent with CDBG
requirements.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Petros
XX. CURRENT BUSINESS
23. Approval of Service Agreement with Alexander's Contract Services for Water Meter
Reading Services (C-6167) 1381100-20151
City Manager Kiff offered to present a staff report, should Council desire it.
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City of Newport Beach
Study Session and Regular Meeting
June 9, 2015
In reply to Mayor Selich's question, Municipal Operations Acting Co -Director Murdoch
reviewed opportunities for residents to monitor their water usage including manual and
electronic meter readings, related costs, installation time, and challenges with electronic
meters and recommended actions.
In response to Mayor Pro Tem Dixon's inquiry, Municipal Operations Acting Co -Director
Murdoch clarified the phased approach offering flexibility in terms of manual or electronic
meter reading services and schedules.
Discussion followed regarding meter readings by the Gas Company.
Mayor Selich confirmed there is nothing in the contract that would lock the City into a fixed
process for the next five years and that it allows for flexibility.
Motion by Council Member Curry, seconded by Council Member Peotter, to approve
the Service Agreement with Alexander's Contract Services for water meter reading services for
a five year term with a total amount not to exceed $1,506,600.00, and authorize the Mayor and
City Clerk to sign the agreement.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Petros
24. Water Main Master Plan Replacement — Award of Contract No. 4920 (CAP14-0031)
[38/100-20151
Deputy Public Works Director Vukojevic offered a presentation should Council desire.
Motion by Council Member Curry, seconded by Council Member Peotter, to a) approve
the project drawings and specifications; b) award Contract No. 4920 to Universal Pipeline, Inc.
for the total bid price of $1,063,500.00, and authorize the Mayor and the City Clerk to execute
the contract; and c) establish an amount of $100,000.00 (9.4%) to cover the cost of unforeseen
work not included in the original contract.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Petros
25. City Insurance Renewals [100-20151
Motion by Council Member Muldoon, seconded by Council Member Curry, to approve
renewal of the City's excess workers compensation and general liability coverage through
CSAC-EIA of premiums not to exceed $934,877 in total premium and renewal of the City's
property, earthquake and flood coverage through PEPIP of premiums not to exceed $802,911
from the Insurance Reserve Funds. It is important to note that negotiations for final premiums
continue through July 1, 2015, and will meet or come in under the above initial quoted
premiums. The term of the renewal is for a twelve (12) month policy period, July 1, 2015
through June 30, 2016, for excess general liability, excess workers' compensation and property
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Study Session and Regular Meeting
June 9, 2015
insurance. Pollution liability coverage was renewed for a thirty-six (36) month policy period,
July 1, 2014 through June 30, 2017.
In response to Mayor Pro Tem Dixon's inquiry, Deputy City Manager Cassidy reported that
rates are generally based on claims experience.
Consultant/Broker Mike Simmons, Alliant, explained determination of the rates noting that
the City is in a Joint Council Alliance which is a pool of cities insured and determining their
own self-insurance retention. He added that the City could reduce its rate by implementing a
higher deductible.
Mayor Pro Tem Dixon stated she would like to see a detailed breakdown of costs.
Deputy City Manager Cassidy agreed to work with Alliant to return that information to
Council. She noted that the City's premium, overall, has been reduced and thanked staff for
their work and efforts on this matter.
Council Member Curry stated he is happy with the current situation but offered to have the
matter agendized for discussion by the Finance Committee. Mayor Pro Tem Dixon agreed with
adding that going forward, she would like to better understand the numbers.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Curry, Council Member Duffield, Council
Member Muldoon, Mayor Pro Tem Dixon, Mayor Selich
Absent: Council Member Petros
XXI. MOTION FOR RECONSIDERATION - None
NMI. ADJOURNMENT - 8:45 p.m.
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 June 4, 2015, at 4:00 p.m.
Recordin Secretary
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