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Home My WebLink About22 - Council Policy Manual Update for 2009CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. as August 11, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 9491644 -3002 or dkiff @newportbeachca.gov SUBJECT: Council Policy Manual Update for 2009 RECOMMENDATION: a) Conduct public hearing relative to Council Policy A -18; b) Approve the following proposed revisions and one addition to the Council Policy Manual: • Revisions to Policies A -18, B -1, B -2, B -7, B -12, B -13, B -14, F -1, F -3, F -6, F -7, F -8, F -12, F -16, and K -1; • Deletion of Policies F -21 and F -23; • Addition of Policy F -28. DISCUSSION: Background: Council Policy D -3 directs the City Council to review the more than 100 policies in the Council Policy Manual annually. These policies exist to instruct the Council and City staff on how to process a variety of different issues -- from airport and annexations to voice mail and water service outside the City limits. This year, the 17 policies proposed for change and one addition are summarized in Attachment A. The proposed changes to existing policies are minor and are NOT summarized in the body of this report. New Policy F -28 is discussed below. Facilities Replacement Program (New F -28) Four years ago, the City developed a Facilities Replacement Program. This is a long term, ongoing program designed to formalize management of City facilities funded by the General Fund, with a primary emphasis on financing and scheduling matters. It is updated each year. Council Policy Manual Update for 2009 August 11, 2009 Page 2 The program was preliminarily implemented as part of the annual budget process three years ago. Objectives, parameters, and procedures have now been sufficiently refined to warrant a new City Council Policy addressing ongoing administration of the program. The proposed policy was reviewed by the Finance Committee on July 10th, and changes were made to reflect modifications requested by members of the Committee. Environmental Review: The adoption and amendment of administrative policies is not a "project' as defined by the CEQA Guidelines. Section 15378 excludes continuing administrative or maintenance activities such as personnel - related actions (B -7, B -14, and F -8), general policy and procedure making (B -13 and F -12); the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project that could have an environmental impact (B -2, B -12, F -1, F -3, F -6 and F -26); and organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment (A -18, B -1, F -7, F -16 and K -1). Public Notice: Among the Council Policies with proposed updates this year is Policy A -18, Measure S Guidelines. Measure S encourages the City Council to adopt guidelines to implement Charter Section 423, and requires that the guidelines be adopted after public notice and public hearing. Notice of the hearing on this policy was published in the Daily Pilot on July 25, 2009, and this agenda item is listed in the public hearings section of the agenda. Prepared by: Submitted by: Shirley Ob r y. Admin st tive Assistant D gv6 Kiff, Assistant City Manager Attachments: A — Summary of Proposed Council Policy Changes B — Council Policies — Strikeout and Underline Versions (except F -28, which is new) 0 Council Policy Manual Changes 2009 Attachment City of Newport Beach August 11, 2009 W Page 1 Council Policy Manual Changes 2009 Attachment City of Newport Beach August 11, 2009 -Sz Page 2 Council Policy Manual Changes 2009 Attachment City of Newport Beach August 11, 2009 i_il Page 3 Council Policy Manual Changes 2009 Attachment City of Newport Beach August 11, 2009 (S� Page 4 Council.Policy Manual Changes 2009 Attachment City of Newport Beach August 11, 2009 J Page 5 Council Policy Manual Changes 2009 Attachment City of Newport Beach August 11, 2009 ...................................................................................................... Policy # ............................... Name ;Adopted ............... ............................... ......................... .............................. i Last Amended or : What it says currently... Proposed Change... Staff Corrected Pt18L�C.,NtORK3 - -. :... -. _ .._. Y :. L -:1 €Sidewalks, Curbs, and Gutters : 3122/65 . : 10/10/06 ; ..._.......... L -�2 .......:........... . ...................................... ....................................................... ............ .......:.......................... Drivewa A roaches ................... y..... PP_............................................... ............................... .......................................... 1/24/66 ................. ............................ 10/10!06 ............................... ..................................................................................................>.................................................................................... ............................... ............................. L -:3 ;City Landscaping restoration in Conjunction 4/11/66 124/94 s . . .............< 'with PublicWorksConstruction ............. . . ................................................ .. ......................................... e . ........... ................................................................................................. _ .... i............................. ` L-':4 :...................................................................................................................................:......................................................................_..................._.............................................................................._..................................................................................................................: : Private Streets i 11/23/64 2124197 ``............................. :,L -:5 :Street and Sidewalk Improvements :.10/24166..: ....___'' _.... ......... .....:. .. .> 2125/96 . «...................... [ L -:6 :Private Encroachments in PuRc Rights -of -Way; 8125169 ... ............................. .................i ................... ....................................... ................. 5/8/01 ....... i..........? ................................ ............................... . .... :Encroachments and Bay Access on Buena 3!14177 _ ......................................... _ .......................................................... ............................... _ ......................................................................... ............................... ................... : 5/8101 : :Vista Blvd./ Edgewater Avenue between Bay _..:Avenue and Fernando Street ............................... ,.......q....... L -:8 . ............................. ............................................................................:.............................................;...................._............................................................................:................................................................................... :Private Encroachments in Public Rights -of -Way 8/24/81 ............................... .............................i 518101 :Ending at the Oceanfront or at Newport Bay ....... .......... L -9 . ............ . ... _ .............................................................................................. ;Conversion of Public Streets to Private Streets 11/22182 _ ............................................. ............. ...... ............. ............................ ................................. _................................................ ................................. ................................. ................... 7!22/96 i ............................................................................................................................................................................................................................................................................ L -:10 :.......>.........., 'Sound Attenuation Walls 2/10186 ............................... ... ...... ...... ............. .... ...... ...... ..... ...... ...... ....... ...... ................................. ..__ .............................. 2/26!96 [ L -11 ................................................................................................................:...........................:.............................................i................................................................................................................................................................................................................_ :Li uidated Dama es Polic 9 9................... Y..................................................,...........................,............................................. 2123198 ..:......._.................... NIA i.................................................................................................. t................................................................................................................ <..... ................................. :'Oceanfront Encroachment Poll 11/ 26/ 90..5..........._ ............................... 10/ 10/ 06.................................................................................................................................................... ' ....... .i.2.... -13 .......>........... ...................................:.._ :McFadden Plaza and Pier Use Polic :10/14/91 ........................__........................................................ Y.........................,...,..........,............................................ ............................... 5!26!96 ,_L`4.. Ci. Entrance and Villa a Si ns „_„ ,- N ............................ ...........9.........g......... ................... .....:.......................:. 10/28/91 ............. .............................................................................................. ................................... ....... .... .............._.......................................................... :.............................a N/A ............................................................................................................................................:........................................................................................................... ...__':........................ i L -i15 :Encroachments on Public Sidewalks ........................................................................................................:...........................:............... 1/11/93: 2!26!96 : ...... : { L -i 16 :Temporary Banners Extending over the Public 1124/94 ..............................? .................. _............................................................................................................................................................................................... . ............... .... ... ....... 10/10/06 i.................. Right of WaY .............................................................................. ............................... :. L- 07 Mater Service. Outside the City ,, ,,,, ................ _........... 6/27/60 2/26196 i................... . L -118 .................................................................................................. :Water Quality Protection -- Drainage - Public 4/23102 ............................... ..... ....................... ...... ...... .................... .... ... .... __ ..... ............ ................................................................................................. _ .... ............................. NIA :Ri htsof Wa 3 Y..........................................................................................................,..........................................._ i.................................................................................................................................................................................................................... .......>.............; :_L- :19... ...................... Leased. Street. Lights :...9 /11172 ..............................i 2/26/96 >. L-:20 .............................................................................................. ............. ............................... .................._ :Water Rates „ .,, ,,. ,,, : _ ............._ 10/26/76 ....................................................... ............................................. _ ..................................... .......................................... ..................._.... ..................... . .................................... ... ................. ..... ....................... _.. ;.............................; : 4/8/03 i.................................................................................................... .... L -i21 .................:............. :Sidewalk Cafe Standards and Procedures 3111/96 ....... ....................................................................................................... _ ............................... 4/23/02 i....................................................... >.............................................................................................. i............... ..................> i L -:22 ...................... ........ ... .... ... ......................................... ................ ...............:............................................ :Water Quality Protection -- Water Quality i 4123102: ................... ......... ..... ...... ...... ...... ...... ...... ......... .................... ........... ...i NIA ;.......a..................... M...... ent.Plans ........................................................................................................................................................................................................................................................................................................................................................._.. ..............................i € L -:23 :The Siting of Wireless Telecommunications i 9124102 10- Oct -06 E ui ment on Ci -Owned Land 9.... I ................................... ................. ..... ................................. .............................. i .......................................... . ` ............. -. 24 :Flags on Public. Bridges `.. N /A...................................... .L .L-: _ 25 > . ......... ............................... ................ :Decorative Concrete. Pavers in_ AIIeYs ......... .............._'..._8 ..6122/04.._.................. /24!04.... .> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................. `............_ 4/ 12/ 05................................................................................. .............................'- ... . . .. .. ..... ........... ............... ..... ... ... ;.. ... _i 26..Neighborhood,Troffic, Management Policy ...............:.... 9/1. 2106 ............. ................._ N/ A.................._ ..................... ............. ................ ......................... ....................... ...................... ................. .. ..................................... ............................... _ ... . ...................... ... Page 6 W ME E SUR-EI&GUIDELINES FOR IMPLEMENTING CHARTER SECTION 423 (1) INTRODUCTION On November 7, 2000, the Newport Beach electorate approved Measure S (Exhibit A). Measure S amended the Newport Beach City Charter by adding Section 423. In general terms, Section 423 requires voter approval of certain amendments of the Newport Beach General Plan (General Plan). Measure S "encourages" the City Council to adopt implementing guidelines that are consistent with its purpose and intent. The City Council has, consistent with Measure S, conducted a series of public meetings to receive input from the public on Measure S and these Guidelines. The City Council has determined, based on staff analysis and public input, that these Guidelines are consistent with the express purpose of Measure S. On November 6, 2006, the Newport Beach electorate approved Measure V a comprehensive update and amendment of the General Plan Land Use Element The Land Use Element approved by Measure V presents land use entitlement information in new tables and maps, and regulates non - residential entitlement by floor area ratio (FAR ) differently than the Land Use Element that was in effect when Measure S was approved. The City Council has determined based on staff analysis and public input, that these Guidelines as amended for consistency with the 2006 Land Use Element, are consistent with the purpose of Measure S. (2) DEFINITIONS The definitions and terms in this section are intended to be consistent with the purpose and intent of Measure S. Certain definitions and terms are intended to generally conform to the definitions in, and terminology of, the most current edition of "Trip Generation," a multi- volume publication of the Institute of Transportation Engineers (ITE Manual). The ITE Manual is the primary reference used by transportation professionals seeking trip generation information. Measure S requires use of the ITE Manual as a basis for calculating the Peak Hour Trips generated by a use permitted by an Amendment. A. Allowed and Proposed Use. The term "allowed use' means any land use(s) permitted by the General Plan on property or in an area. An allowed use may be defined in terms of a residential use and /or a non - residential use generally applicable to an area or property or a particular land use applicable to specific parcel. A "proposed use" is a land use that would be permitted after an Amendment is approved. MW B. Amendment. The word "Amendment" means any proposed amendment of the General Plan that is first considered and /or approved by the City Council subsequent to December 15, 2000 and that increases the number of peak hour trips, (traffic,) floor area (intensity) or dwelling units densit floor ai�e when compared to the General Plan prior to approval. In all cases an Amendment shall state the proposed entitlement in density and /or intensity and, in the case of intensity, the category of non - residential use. C. Ap roval. jc 1. to the exeeption speeified in the UN rd sentenee e t i zIhe word "approve" (and any variations such as approved or approval) means, in the context of the City Council's decision on an Amendment, that four members of the City Council have, after the City has complied with the "mandatory procedures" described in Section (4)(A) voted affirmatively to adopt a resolution that contains the text of a proposed Amendment. In the context of the voter =s_ decision on an Amendment, the word f"approve" (and any variations such as approved or approval) means that a majority of those voting in the election have voted in favor of the Amendment. The City Geuncil- ;halls l h dppmea to have " approved" a . Guidelines. The approval of a" agfeefaent desffibed in "s Seetieft shal net be `vt eLLU` t to the extent of these a ffeements between the City and Project propeneent that are expressly autliofizecl by section 4_223. D. Dwelling Unit. The term "dwelling unit" means "dwelling unit" as defined in Section 20.03.030 of the Newport Beach Municipal Code (Code). E. Entitlement. The word "entitlement" means the maximum amount of floor area or dwelling units authorized by the General Plan for each allowed use on any property and /or in any area. The term entitlement when preceded by the word "proposed" shall mean the entitlement requested by an Amendment. — Proposed Amendments for parcels or areas entitled for special uses shall, when 2 10 considered by the Planning Commission and City Council and when submitted to the voters, describe the proposed entitlement in both floor area and the appropriate unit of measurement for that special use as utilized in the Trip Rate Table. F. Floor Area. The term "floor area" shall be defined as follows (taken from Section 20.03.030 of the Code - "Floor area, gross "): "The total enclosed area of all floors of a building measured to the outside face of the structural members in exterior walls, and including halls, stairways, elevator shafts at each floor level, service and mechanical equipment rooms, and basement or attic areas having a height of more than seven feet." G. Non - residential Use. The term non - residential use means any land use other than a residential use that is authorized by the General Plan -and that generates any peak hour trips. The term non - residential use includes the land uses specified in Sections 20.05.040 (public and semi - public), 20.05.050 (commercial), 20.05.060 (industrial) and 20.05.070 (agriculture) of the Zoning Code. For the purposes of these Guidelines, and specifically the Trip Rate Table, the non - residential use categories area "Commercial" (which includes the General Plan designations of 'Retail RNeighborhood Commercial ", "Administrative Professional PiRaneialCorridor Commercial ", "General Commercial ", "Visitor Serving Commercial "and "Recreational and Marine Commercial" and "Regional Commercial "Vl S.fyin- .:.-...r nmereial");i (2) "Commercial Office" (which includes the General Plan designations of "General Commercial Office ", "Medical Commercial Office" and "Regional Commercial Office "); (3); "General Industrial "LW "Airport Office and Supporting "7(5) the non - residential portions of "Mixed Use" categories;, - and (6) "Public, Semi Public & Institutional," which includes the General Plan designations of "Public Facilities ", "Private Institutions ", "Open Space ", "Parks and Recreation" and "Tidelands and Submerged Lands - "). H. Peak Hour Trips. The term "peak hour trips" means the number of vehicle trips equal to the applicable peak hour trip rate specified in the Trip Rate Table (Exhibit B) for any allowed use or proposed use multiplied by the entitlement (using the appropriate quantity of the relevant "unit" of measurement specified in the Trip Rate Table). When these Guidelines require a statement or calculation of peak hour trips, the morning and evening peak hour trips shall each be provided and listed separately. 3 MJ Exhibit B shall be updated annually or as often as ITE revises the Trip Rate Table, and this iodate shall not be considered an amendment to this policy. I. Peak Hour Trip Rate. The term "peak hour trip rate" means the morning and evening average weekday rate during the peak hour of the adjacent street traffic for an allowed use and proposed use (as specified in the Trip Rate Table and as derived from the ITE Manual). The peak hour trtip-rate4or, any nen idential . is speeified in the Trip Rate Table In the event the Trip Rate Table does not contain a peak hour trip rate for an allowed use or a proposed use, the peak hour trip rate shall be based on the morning and evening weekday average peak hour trip rate for the most comparable land use in the Trip Rate Table. The most comparable land use in the Trip Rate Table shall be determined by the City Council based on recommendation of the Planning Director and the Transportation and Development Services Manager (Traffic Engineer). The morning and evening peak hour trip rates shall be listed separately. J. Prior Amendment. The term "Prior Amendment" means an Amendment that: 1. Affects property or an area within the same statistical area as an Amendment that is being considered by the Planning Commission and /or City Council; and 2. Was approved by the City Council after December 15, 2000; and 3. Was approved within ten years prior to the date the City Council approved the Amendment being evaluated pursuant to Section 423 and these Guidelines; and 4. Was determined by the City Council, or by a final judgment of a court of competent jurisdiction, not to require voter approval pursuant to Section 423 and these Guidelines. K. Residential Use. The term "residential use" means General Plan entitlement that is stated in terms of dwelling units. L. Statistical Area. The term "statistical area" shall mean one of the statistical areas identified (on }gage -89 ure LU3)) in the Land Use Element of the General Plan approved by the City Council on Qeteber-- ul , 245 19882006 4 101 (Exhibit C). The term statistical area also means any new statistical area(s) established for property annexed to the City subsequent to r`e'�'^9w lulu 25, 2006 and in such event Exhibit C shall be modified to depict any new statistical area(s). (3) METHODOLOGY Section 423 requires voter approval of any major amendment to the Newport Beach General Plan. According to Section 423 a "major amendment" is one that significantly increases traffic intensity or density of allowed and proposed uses This Section describes the methodology and assumptions to be used for purposes of calculating the traffic maximum peak hour trips), intensity (floor area) and density (dwelling units) of allowed uses and proposed uses. A. Traffic /Peak Hour Trips. The purpose of this Section is to assist the Citv Council, Planning Commission, staff, the public and property owners in understanding and calculating the traffic generated by allowed and proposed uses. Section 423 specifies that Section 423 i�egrlirss "vater �}. a F ffi that 11 ......, .............., a.uu.........,cam ars �raaxai, u.vrmxo ...- a- '__. ^'::� Tthe term "significantly increases" means "over 100 peak hour trips (tra€€ic)." Measure S and Section 423 do not define the terms "allowed uses" and "maximum amount of traffic" and they do not specify a method of calculating any increase in the maximum traffic resulting from an Amendment. The General Plan contains non - residential use categories that authorize a wide range of land uses with variations in trip generation rates that make infeasible the use of the highest peak hour trip rate of any allowed use. Accordingly, for property or geographical areas for which entitlement is specified in terms of one or more non - residential use category, the peak hour trip rate specified in the Trip Rate Table represents a blend of the ITE trip rates for the most prevalent uses within each category. The City Council has determined that the methodology and assumptions in these Guidelines represent the most reasonable method of determining the amount of traffic that is allowed under the existing General Plan and the increase in peak hour trips resulting from an Amendment. The following methodology shall be used for calculating the peak hour trips of an allowed use and the increase, if any, in the peak hour trips resulting from a proposed use if an Amendment is approved: 9 13 1. Allowed Use. The peak hour trips that an allowed use could generate shall be calculated by multiplying the entitlement for the property or area by the morning and evening peak hour trip rate for the allowed use as specified in the Trip Rate Table. If the allowed use is designated in terms of one or more non - residential use category, the peak hour trip rate from the Trip Rate Table for the applicable non - residential use category shall be used. If the allowed use or uses are designated in terms of one or more specific land uses, the peak hour trip rate from the Trip Rate Table for each specific use shall be used in proportion to the amount of entitlement for each specific use. 2. Proposed Use. The peak hour trips that a proposed use could generate shall be calculated using the methodology specified in Subsection 1. 3. The increase, if any, in peak hour trips resulting from an Amendment shall be calculated by subtracting the morning and evening peak hour trips determined pursuant to Subsection 1 from the morning and evening peak hour trips, respectively, determined pursuant to Subsection 2. B. Intensitv /Floor Area.. The purpose of this Section is to assist the City Council, Planning Commission, staff, the public and property owners in understanding and calculating the "intensity of allowed uses' (allowed intensity) permitted by the General Plan for any parcel or area that is designated, or proposed to be designated for Non - Residential Uses and the allowed intensity resulting from approval of an Amendment (proposed intensity). The Land Use Element, with the exception of those special land uses described in sSubsection 2, employs the following methods of specifying allowed intensity: (a) allocating a specific amount of floor area (specific floor area allocation); or (b) assigning a fixe�floor area ratio (€iced floor area ratio), with the allowed intensity calculated by multiplying the applicable floor area ratio ( "FAR ") by the gross land area of the parcel�(e) b b :able (leer area ratio €gent the "base FAR" of 0.5 to a PAR R of 0.65,, v.7o 100 1 25 ('mar . ced PAR"), -Adith ... , -r'°°� °z- rz� -�-c crrrni�ciirQ � the allowed -iptet gross, land area of the i9ay-Eel. 1. Methodology. Except for "special uses" covered in subsections 2 and .3,_Tthe increase in intensity resulting from approval of an 6 1H M Amendment shall be calculated by subtracting the allowed intensity from the proposed intensity. Both allowed and proposed intensity shall be calculated as follows: ealculated :r ..^,,,.,.,1,.ne ,,,;i pn-�iflpd kn- tefEns E)f a variable FAR, t4w allowed intensity aft prepesed intensitj ^shallbe;—(i) the specific floor area allocation; or (ii) the fix -c -d p icable FAR multiplied by the gross land area. 7 Is _.r _ _ r _ r .. ........ r _. MIN INS r 7 Is _.r _ _ r .. ........ _. MIN INS r a r 7 Is IRM 2. Special Uses. The Land Use Element has historically entitled land uses on the basis of the most common "unit of measurement" utilized in the ITE Manual for calculating the peak hour traffic generated by that land use. The use of the appropriate "unit of measurement' ensures that the Land Use and Circulation Elements are, as required by State law, properly correlated. Floor area is the most common unit of measurement in the ITE Manual but a different metric is used to measure peak hour trips in the case of certain land uses such as hotels (rooms) and theatres (seats) because of-those metrics better reflect the traffic generation characteristics of those uses. _Consistent with the ITE Manual, the City has historically entitled some large hotels in terms of rooms and two large theateres in terms of seats. _The City has, in the "Estimated r, .,...,th Tables!— LU2 Anomaly Locations, either foF these statists al ai:eas Hieh speeial uses are i, ate assigned appFe tel) -1000 square feet of floor area for each hotel room or indicated the number of hotel rooms allowed on the site. Table LU2 also indicates the number of theater seats allowed on certain sites, while the intensity limit for other sites where theaters are allowed is indicated in Table LUl Land Use Plan Categories. For the purposes of this policy, the rate of 1,000 square feet per hotel roan and 15 square feet hper theater seat shall. be usedfer 3. Special Uses/ Methodology. The "allowed intensity" of a parcel or area that is entitled using hotel rooms or theater seats as a unit of measurement shall be calculated on the basis of 1,000 square feet per hotel room or 15 square feet per theater seat. The "allowed intensity" of a parcel or area that is entitled in a unit of measurement other than floor area, hotel rooms or theater seats shall be calculated on the basis of the greater of the floor area specified in the "Density / lntensity' column of Table LU1 ILand Use Plan Categories or Table LU2 Anomaly Locations, Area in which the parcel of s seemed or the amount of floor area of the allowed uses existing on the parcel at the time the application for the Amendment is filed. E C. Density /Dwelling Units. The dwelling units authorized in the General Plan for property or an area before and after an Amendment shall be determined on the basis of the maximum number of Dwelling Units allowed on the property or area before and after the Amendment. D. Trip Rate Table. The Trip Rate Table contains the morning and evening average weekday peak hour trip rate for each land use specified in the ITE Manual. The information in the Trip Rate Table is based on the vehicle trip rates and related data in the ITE Manual. The term "unit" in the Trip Rate Table refers to the "unit of measurement" or "independent variable" that was used in the trip generation studies that form the basis of the trip rates reflected in the ITE Manual. E. Entitlement Table. The Entitlement Table shall describe, by Statistical Area, the peak hour trip traffic , floor area (intensity) and dwelling unit (denskland ea increases, if any, of each Amendment approved by the City Council subsequent to December 15, 2000. The Entitlement Table shall not include any Amendment approved by the voters and an Amendment shall be removed from the Entitlement Table ten (10) years after approval by the City Council. F. Multiple Amendments. The City Council may have occasion to approve more than one Amendment affecting the same Statistical Area at the same meeting. In such event, the Amendments shall be deemed approved in the following order: 1. The Amendments) with the earliest date(s) of initiation or application (for example GPA 2001 -001) shall be deemed approved before an Amendment with a later date of initiation or application (for example 2002 -002). 2. In the event that more than one Amendment was initiated or applied for at the same time, the Amendments shall be deemed approved in numerical order (for example GPA 2001 -001 would be deemed approved before GPA 2001 -002). G. Change in Land Use Category. In the case of an Amendment that proposes a change in land use from non - residential to residential or vice versa no floor area credit shall be given for allowed density (dwelling units) and no density credit shall be given for allowed intensity (floor area). For example, 9 am in the case of a Residential parcel with an allowed density of 20 dwelling units the allowed intensity is zero square feet of floor area and in the case of a Non - residential parcel with an allowed intensity of 100,000 square feet, the allowed density is zero dwelling units. However, traffic (peak hour trip) credit shall be in accordance with the entitlement multiplied by the appropriate peak hour trip rate. (4) PROCEDURES This Section describes procedures to be followed prior to City Council approval of an Amendment and the submittal of that Amendment to the voters. A. Mandatory Procedures. The City Council shall not approve an Amendment unless and until the Planning Commission and City Council have first conducted noticed public hearings as required by law and prepared and certified any environmental document that is required by the California Environmental Quality Act (CEQA) and the CEQA Guidelines. The City Council shall, at the same time the Amendment is considered and decided, consider and decide any discretionary land use approval or permit that is related to the Amendment and for which an application has been submitted. B. Staff Reports. The Planning Department shall prepares Planning Commission and City Council staff reports for each Amendment. All Planning Commission and City Council staff reports on an Amendment shall contain information relevant to whether the Amendment, if approved, would require voter approval pursuant to Section 423. _The reports shall include the following information: 1. In the case of an Amendment where the existing and /or proposed use is a residential use, the number of dwelling units allowed by the General Plan before and /or after the Amendment; 2. In the case of an Amendment where the existing and /or proposed use is a non - residential use, the amount of floor area (and relevant unit of measurement from the Trip Rate Table if different than floor area) allowed by the General Plan before and /or after the Amendment, 3. In all cases, the number of peak hour trips allowed by the General Plan before and after the Amendment; 10 11 A -18 4. A table that identifies each Prior Amendment (see definition in Section (2)J) including any increase in Peak Hour Trips, Floor Area, D "''� and /or Dwelling Units T'ea' yips, and the date on which each Prior Amendment was approved; 5. A table that adds eighty percent (80 %) of the increases in peak hour trips, dwelling units and-fl oor area and dwelling units resulting from Prior Amendments (see definition in Section (2)J) to the increases in peak hour trips, floor area d�v ^' amts and /or dwelling units € oe+r afea - -(as appropriate) resulting from the Amendment under consideration. 6. The Entitlement Table referenced in Section (3)E. 7. Information about the Amendment, any associated project or land use approval and the environmental analysis that would help the Planning Commission and City Council make . informed recommendations or decisions on the Amendment and help the public develop informed opinions about the Amendment. C. City Council Review. The City Council shall determine at the noticed public hearing at which any Amendment is approved if, based on the administrative record for the Amendment including any testimony presented at that hearing, the Amendment requires voter approval pursuant to Section 423. The City Council shall submit an Amendment to the voters if: ]. L.—The Amendment modifies the allowed use(s) of the property or area that is the subject of the Amendment such that the proposed use(s) generate(s) more than one hundred morning or evening peak hour trips than are generated by the allowed use(s) before the Amendment; or 2. The Amendment authorizes an increase in floor area for the property or area that is the subject of the Amendment that exceeds forty thousand (40,000) square feet when compared to the General Plan before approval of the Amendment; or 11 19 W. 23. The Amendment authorizes an increase in the number of dwelling units for the property or area that is the subject of the Amendment that exceeds one hundred (100) dwelling units when compared to the General Plan before approval of the Amendment; or 4. The increase in morning or evening peak hour trips, .floor area or dwelling unit,,; or resulting from the Amendment when added to eighty percent (80 %) of the increases in morning or evening peak hour trips, floor area or dwelling units er-= �resulting from Prior Amendments (see definition in Section (2)J exceeds one or more of the voter approval thresholds in Section 423 as specified in ssubsection 1, 2 or 3. D. Calling an Election. In the event the City Council determines that the Amendment requires voter approval, the City Council shall, at the noticed public hearing at which the Amendment was approved or a subsequent noticed public hearing held no more than sixty (60) days after making the determination, adopt a resolution calling an election on the Amendment. The City Council shall schedule the election on the Amendment at the next regular municipal election (as specified by the City Charter) or at a special election if the City and the proponent of the Amendment have entered into a written agreement to share the costs of the special .election. The -City Council shall, at the time the election is called, direct the City Attorney to prepare an impartial analysis of the Amendment. The impartial analysis shall contain information about the Amendment, any related project or land use approval, and the environmental analysis conducted of the Amendment that will help the electorate make an informed decision on the Amendment. In the absence of an ordinance or Charter provision that establishes a procedure for submittal of arguments or rebuttals relative to City measures, the City Council shall, at the time a decision is made to submit an Amendment to the voters, adopt a resolution that authorizes the filing of arguments and rebuttals in accordance with the general procedures specified in the Elections Code. 12 n0 0( M E. Exclusive Method. Effective November 3, 2004, in the absence of a mandatory duty arising from an initiative petition, referendum petition, court order or other mandatory legal obligation, Section 423 and the procedures outlined in these Guidelines represent the sole and exclusive method by which the City Council considers, approves and submits for voter approval an Amendment that is subject to Section 423. The City Council has also determined that nothing in Section 423 prevents the City Council from submitting any matter other than an Amendment to the voters as an advisory measure. Adopted - March 27, 2001 Amended - June S, 2004 Amended - July 13, 2004 Amended - 13 A EXHIBIT A Section 423. Protection from Traffic and Density. Voter approval is required for any major amendment to the Newport Beach General Plan. A "major amendment" is one that significantly increases the maximum amount of traffic that allowed uses could generate, or significantly increases allowed density or intensity. "Significantly increases" means over 100 peak hour trips (traffic), or over 100 dwelling units (density), or over 40,000 square feet of floor area (intensity); these thresholds shall apply to the total of: 1) Increases resulting from the amendment itself, plus 2) Eighty percent of the increases resulting from other amendments affecting the same neighborhood and adopted within the preceding ten years. "Other amendments" does not include those approved by the voters. "Neighborhood" shall mean a Statistical Area as shown in the Land Use Element of the General Plan, page 89, in effect from 1988 to 1998, and new Statistical Areas created from time to time for land subsequently annexed to the City. "Voter approval is required" means that the amendment shall not take effect unless it has been submitted to the voters and approved by.a majority of those voting on it. Any such amendment shall be submitted to a public vote as a separate and distinct ballot measure notwithstanding its approval by the city council at the same time as one or more other amendments to the City's General Plan. The city council shall set any election required by this Section for the municipal election next following city council approval of the amendment, or, by mutual agreement with the applicant for the amendment, may call a special election for this purpose with the cost of the special election shared by the applicant and the City as they may agree. In any election required by this Section, the ballot measure shall be worded such that a YES vote approves the amendment and a NO vote rejects the amendment; any such election in which the ballot measure is not so worded shall be void and shall have no effect. This section shall not apply if state or federal law precludes a vote of the voters on the amendment. (End of amendment. But the proposed ballot measure also includes the following "Second" through "Seventh":) it a �� A -18 Second. Purpose. It is the purpose of the amendment to give the voters the power to prevent Newport Beach from becoming a traffic- congested city, by requiring their approval for any change to the City's General Plan that may significantly increase allowed traffic; and also to make sure that major changes do not escape scrutiny by being presented piecemeal as a succession of small changes. Third. Findings. 1. In planning the growth of their city and protecting its quality of life, a prime concern of the people of Newport Beach is to avoid congestion and gridlock from too much traffic. 2. The General Plan guides growth in the City of Newport Beach by designating land use categories for all lands in the City, and providing limits on the allowed density and intensity of use for each land use category. 3. The General Plan already provides for additional growth in the City; if all development allowed by the General PIan were to be built, the traffic generated in the City would increase by about 20 %. 4. The people, whose quality of life is at stake, should have the power to disapprove any proposed General. Plan amendment that may significantly increase traffic congestion beyond that which could already occur from development under the General Plan. Fourth. Implementation. 1. It is the intent of the foregoing amendment to the City Charter of the City of Newport Beach that, to the maximum extent permitted by law, it apply to all amendments to the General Plan approved by the Newport Beach city council after the time of filing of the Notice Of Intent To Circulate Petition, provided that it shall not apply to any amendment for a development project which has obtained a "vested right" as of the effective date of the foregoing amendment to the City Charter. A "vested right" shall have been obtained if: (a) The project has received final approval of a vesting tentative map. As to such vesting tentative maps, however, they shall be exempt only to the extent that development is expressly authorized in the vesting tentative map itself; or (b) The project has obtained final approval of a Development Agreement as authorized by the California Government Code; or (c) The following criteria are met with respect to the project: 2 C3 A -18 (i) The project has received a building permit, or where no building permit is required, its final discretionary approval, and (ii) Substantial expenditures have been incurred in good faith reliance on the building permit, or where no building permit is required, the final discretionary approval for the project; and (iii) Substantial construction has been performed in good faith reliance on the building permit, or where no building permit is required, on the final discretionary approval. Phased projects shall qualify for vested rights exemptions only on a phase by phase basis consistent with California law. 2. The city council is encouraged to adopt guidelines to implement the foregoing amendment to the City Charter of the City of Newport Beach following public notice and public hearing, provided that any such guidelines shall be consistent with the amendment and its purposes and findings. Any such guidelines shall be adopted by not less than six affirmative votes, and may be amended from time to time by not less than six affirmative votes. 3. The City shall take all steps necessary to defend vigorously any challenge to the validity of the foregoing amendment to the City Charter of the City of Newport Beach. 4. Peak hour trip generation rates shall be calculated using the most recent version of the Trip Generation Manual of the Institute of Transportation Engineers. The city may fine -tune these rates, but not to less than 95% of the rates in the Manual. Fifth. Attachment. Attached to this petition is a copy of page 89 of the Land Use Element of the General Plan, showing the "Statistical Areas" of the City of Newport Beach. Sixth. Construction. Nothing herein shall be construed to make illegal any lawful use presently being made of any land or to prohibit the development of any land in accordance with the provisions of the City's General Plan in force at the time of filing of the Notice of Intent to Circulate Petition. 3 aw Seventh. Severability. If any part of this initiative is declared invalid on its face or as applied to a particular case, such decision shall not affect the validity of the remaining parts, or their application to other cases. It is hereby declared that each part of this initiative would have been adopted irrespective of the fact that any one or more other parts be declared invalid. "Part" is generic, including but not limited to: Word, clause, phrase, sentence, paragraph, subsection, section, and provision. 4 �5 Measure S Trip Table Peak Hour of Adjacent Street Traffic *AM &W PM peak f=rg 001nctde with peak hours of adjacent street taft tTJ 00 Specific Land use U"" Period Period Rate Comrmnft 90 Park-Ride Lot vwBuS Service Parking Space AM 0.75 P PM M 0.63 110 General Light Industrial 1000 LOOO sq it GFA G AM 0.92 D PM 0.98 Q6 General Henry ii, 1000 ag ft GFA = AM 0.51— PM 0.98— 13011nduMaWaek 1000 %q ft GFA AM 91 PM & 2 912 140 Manufacturi2q 10 M s q ft GFA AM _ 0.731 FM 0.74 150 Warehousin 1-000 —sq ft G--FA AM 0.45 Pm 0.51 151 whi-Warehouse LOOD sq ft GFA AM 0.15 PM 0.26 170 utilities Acre AM 0.49 --Rd Single - Family Detached —Housing ------- —D-'g . ... Pm 0,49 AM 0-75 . .. PM 101, 220 Apartment D.U. AM 0.511 PM 0.62 222 High-Rise Apartnent AM 0.30 Pm 0.35 223 fAd-Rine Apartneint D.U. AM 0.30 PM 0.39 224IRentai Townhouse D.U. —7—M— —0.70 I Pm 0.75 230I Residential Condominiumrrovmhouse O.U. AM 0.44 I PM 0.54 231 Lov.,.Rse Resider" CondominjurrifTomhouse O.U. AM 0.66 Pm 0.83 F2 2 Hiah-Rise ResWenfial C dominiumrromhouse D.U. —AM —034 Pm 0.38 2 3 33 Luxury Condominiumffovmhouse D.U. AM 6.56 PM 0,65 240 MobOe Home Padc D.U. AM 0.40 — . I PM 0.501 *AM &W PM peak f=rg 001nctde with peak hours of adjacent street taft tTJ 00 Measure S Trip Table Peak Hour of Adjacent Street Traffic * AM and PM peak hours coincide with peak hours of adjacent street traffic 00 SpOtIft Land U" Unit Peeled d Rate Comm" Rebafnent Comunfly D.V. AM 0.17 PM 0.27 _251 EldedyHousing- Detached__.,__ D.U. 0.21 PM 0.23 ?L2 Congregate Care F D.0 . ......... AM.-- 0.06 —HouslngAffacbed PM 0.17 Ta KWArly O.U. -7-m— —0,67 PM 0.101 2i-0 Roomflonal Homes D.U. AM 0.16 PM 0.28 .270, Residential Planned Unit Development (PUD). O.U. AM PM 0.51 Hotel Room AM --0.62— 0.56 PM 06, 311 All Suites Hotel Room AM 0,38 PM 0-40 3112 320 Businese Hotel Motel Room AM 0.58 PM 6.8-2 Room AM 0A5 -WO- PM 0.47 Resod Hotel —Room ^ AM 0.31 PM OA2 411 City paek AM No Peak Hour Data Available 412 County Park Acre AM 0.01 PM 0.06 413 State Part Picnic Site AM - No Peak Hour Data Available PM 0,55 414 Watar Slide Park AM— - No Peak Hour Data Available PM - 415 Beach Park Acre —AW— - No Peak Hour Dab Available PM 1.30 416 Camp g round /Recreational Vehicle Park 'Camp site AM 0.27 PM 0. 417 Pm* Acm Z_ - NcFeekHourfkdaAvsWabtY r I PM 0.201 * AM and PM peak hours coincide with peak hours of adjacent street traffic 00 E R.— Measure S Trip Table Peak Hour of Adjacent Street Traffic - AM and Pm peals hours coincide with beak hours of adimard street IbMWIC ILI 00 SpecM Land Use Unit Period Rate Comnwrft 416 National Monument Acre AM No Peak Hour Data Available PM AM 0.08 Pm AM PM 0.19 0.21 �offCoCrs�i 0.30 431 Miniature Golf Course Holes oies Roies—l— -Tm— - No Peak Hour Data Available I PM 1 0.331 432 Golf driving Range TeasfDdvinq AM - No Peak Hour Data Available Positions PM 1,25 Live Thq�6r LT— 2§eiia AM 1.92 --5.77 I -P7M— - No Peak Hour Data Available PM 0.02 443 Movie Theater without Matinee IWO w ft GFA AM 0.22 PM 6.16 444 Movie- Theater with Matinee 0 G� ... .. A - No Peak Hour Data Available . — — PM 3.80 491 Tennis Courts Tennis Court Zm—d-1.67 PM 3.88 2 4921RaoquetClub Court AM 1.40 I Pm 3.85 , 493 Haab Club 1000 sq ft GFA AM 0.30 PM 4.30 494 BovAlno Alloy BovAing Lanes— AM -3.13 Pm 3.54 495 Recreational Community Center 1000 sq It GFA AM 1,32 PM 1.75 620 Elements rl School Student AM 0.29 PM No Peak Hour Data Available 521 iNvate School (4-12) 1000 sq ft GFA AM 3-54 PM 5.50 02 Middle School/Junior High School _ 1000 sq t GFA AM 3.68 PM 1.23 &V Nab $Chad 1 W aq ft GFA AM 3.22 PM 1.02, - AM and Pm peals hours coincide with beak hours of adimard street IbMWIC ILI 00 hP Measure S Trip Table Peak Hour of Adjacent Street Traffic * AM and PM peak hours coincide with peak hours of adjacent street traffic Sp oft Lana Un URN Rats lCe�— -540 JunWMommrAy C.Aege. 1000 sq ft GFA -Pedod AM 1.62 Pm 1.77-- 550 UnfversityACol(ege Student AM 0.21 PM 0-21 Sga Church 10D0 sqftGFA AM -- PM 0.72 —0.66 AM 0.33 --.�5 I PM 1 V4 Day Caie Center AM 12-71 PM 20 gemettry_ Acre -- GOA AM 0.17. OA4 PM AM 7.09 0.01 91 Mal Organization PM 0.03 C 1000 s�!JF�- 0.97 PM 0.92 SO Nming Home - -1000 sqftGFA ft C AM 0.40 — PM 0.36 630 Clinic l000s ft C 1000 sq It GFA AM - No Peak Hour Data Available Pm 5.18 710 General Office Building tC 1000sqftGFA AM 1.561 — PM 1.49 714 Co orate Headquarters Building, 1000 sq ft GFA iW-- —1.47 Pm 1.39 715 Single Tenant Office Su(Iding 00 sq fIC 1000 sq ftGFA AM 1.78 Pm 1,72 720 Mescal -Dental Office Buildirg iOODsqftGFA AM 2.43 Pm 366 730 C-*vemnvnt Offim Building ILO �ftGFA AM 5.88 -'��3—i PM - No Peak Hour Date Available M Vehicles Department GOO sq ft GFA AM 9.54 PM 17.09 733QommmeM0MmCompkx OW aq ft GR� AM 2.25 —W— —2.86 * AM and PM peak hours coincide with peak hours of adjacent street traffic Ln Measure S Trip Table Peak Hour of Adjacent Street Traffic * AM and PM peak hours coincide with peak hours of adjacent street "Me a- Land U" —Paik Unit Palled Rate lCommerris 750 dffk a — 1000 sq ft GFA AM 1.741 --io—O _. _.____.__meat I'm AM 1.50 1.24 Rem—arch and Center—, _10,50 sq ft G--FA"— __i ft GFA .... . ..... PM AM 1.08 -.i5 1.43 Business P ark— PM 1.29 612 Build" Materials and Lumber Store 1000 w ft GFA AM 2.64 PM 4.04 613 Fret-Standing Discount Superstore 1000 sq ft GE��_ AM 1.64 PM 3.82 614 Ity Retail Center 1000 sq ft CLLA AM - No Peak Hour Data Available 1000 sq it GFA PM AM 2.59 0.99 $15 Free-Standing Discount Store PM 4.24 616 Hardware/FaintStare WOO s44 ft GFA AM 1.10S PM 4.42 817 Nursery (Garden CerHe 1000 sq ft GFA AM PM 1.31 3.80 618 1000n8GFA AM 2.40 Pm 5.17 820 Shopping Center 1000 ag ft GLA AM 1.03 PM 3.74 831 Civalky Restaurant iWOsqftGFA AM 0.5`1 PM 7.49 $32,High-Tumover (Sit-Down) Restaurant 1000 sq ft GFA AM 9.27 PM 10.861 0 833 Fast-Food Rea Wo Ddve-Through VVIrdow IOMsqltGFA AM 43.87 PM 26.15 FasWood Rest wlDrfve�-Through Window 1000 sq It GFA AM 49.86 r834 PM 33.48 835 Fad-Food Red. vdDftve-Through Window & No indoor Seating 1000 sq it GFA AM - No Peak hour Data Available PM 153.85 1000 sq It GFA AM No Peak Hour Data Available PM 11.64 Lubsicabon Vehicle SIW SwAmg Podkn AM 3.00 F837 1Quick PM 8.19 1 * AM and PM peak hours coincide with peak hours of adjacent street "Me ED Measure S Trip Table Peak Hour of Adjacent Street Traffic - AM and PM peak hours coincide with Peak hours 01 adjacent street traffic Spedft Land Use unit Psdod Rau lComments 840 Automobile Care Center LCO"q ft Occ. GLA AM 2.94 841 1000 sq ft GFA _ PM AM 3.38 2.21 New Caz Sales PM __10009qftGFA AM _Z80 2.21 PM 5.98 7844 GesdinOService Station Vehicle Fuel Position AM 12.27 PM 14,56 945 Gasoline/Service Station wl Convenience Market 1000 sq It GFA AM 0.041 PM 0.04 W GasofinelService Stalon Yd Convenience Market & Car Weim-- Vehicle Fuel Position AM —10.64 PM 13.19 -W Self-Servioe Car Wash Wash Stalls AM No Peak Hour Data Available PM 5.79 8" TWO Store 1000 sq It GFA AM 2.65 PM 4.12 860 SLOormaeket ...... 1�00s A AM PM 3.25 i y— 851 lConvenience Market (Open 24 1000 sq ft GFA AM 65391 PM 53.73 852 Comarfience Market (Open 15 -16 Houm) IQW sq It GFA AM 31.02 PM 34.57 653 Convenience Market with Gasoline Pumps ION sq ft GFA AM 45.58 PM 60.61 854 Discount Sup2miarket 1000 sq R GFA AM 1.72 PM 9.83 862 Home Improvement Superstom 1000 ag ft GFA... AM 1.48 1 PM 2.87 863 Electronics Superstore 1000 sq R GFA AM 0.28 PM 4.50 864 ldreWs Su Lcy2LC�hi 1000 sq ft GFA AM - No Peak Hour Data Available PM 4.99 870 Apparel Store 1000 sq It GFA AM 1.00 PM ::" SW PhinmacyUM"We We NvewTlirou2h Window I I R GFA AM 320' PM 7.831 - AM and PM peak hours coincide with Peak hours 01 adjacent street traffic 14 Measure S Trip Table Peak Hour of Adjacent Street Traffic * AM and PM peak hours coincide with peak hours of adjacent street traffic I Specift Land Use unft Period Rate Comments PhamocytDrugOore vdD*e.ThT!gh Window 1000sqft GFA AM AM 2.68 PM 10.40 890 Fumtture Store ILOO aq ft qF AM 0.17 PM 0.45 895 Video Arcade 1000 sq ft GFA AM No Peak Hour Data Available PM 10.64 WiooRer�Fal Store 1000 sq ft GFA AM - No Peak Hour Data Available I PM 1 11601 911 Walk-in Bank 1000 sq ft GFA AM 4.07 'M 012 Ddv" Bw* 1000 agA GFA_ AM I I- PM 9.37 I * AM and PM peak hours coincide with peak hours of adjacent street traffic I Measure S Trip Table Peak Hour of Adjacent Street Traffic I 0 AM and PM peak hours coincide with peak hours of adjacent street traffic Cr1 Genera{ Man.Residentlal 1 Ca ones Unit Period Rate Comments Commercial (Retail Service Commercial, Administrative Professional Financial and Recreational and Marine Commercial _ 1000 sq ftGFA AM 3.00 PM 4.00 General Plan lndusbW 1000 sq R GFA AM 1.00 _ PM 1.00 _ General Plan Public, Sernt- Public, & Institutional 1000 sq R GFA AM 1.50 "— PM 1.50 I 0 AM and PM peak hours coincide with peak hours of adjacent street traffic Cr1 PARK FEE POLICY PURPOSE Va The City of Newport Beach maintains an extensive park and open space system. The acquisition and development of our park and open space properties is funded, in part, through the payment of park fees paid by persons or entities who subdivide properties. The Subdivision Map Act requires park fees to be used only for the purpose of developing new or rehabilitating existing neighborhood or community park or recreational facilities to serve the subdivision that paid the fees. The City is required to develop a schedule specifying how, when and where the park fees . will be used. The purpose of this Policy is to establish the criteria to be used in deciding which facilities serve subdivision residents and schedule whereby park fees are properly and timely committed to appropriate projects. POLICY A. Service Criteria. The Recreation and Open Space Element of the General Plan states that community parks and view parks serve the entire City. Community parks are those with improvements such as community buildings, parking, swimming, facilities for picnicking, active sports and other facilities that serve a larger population. Neighborhood parks which include unique recreational facilities, such as basketball courts, tennis courts, turf areas, active sports fields, community buildings, unique play areas or view parks are also considered City -wide resources used by all citizens. Accordingly, park fees generated by any subdivision within the City may be used to develop new or rehabilitate existing community parks, view parks, and those neighborhood parks listed on Exhibit A. The Recreation and Open Space Element divides the City into 11 service areas consisting of relatively discrete residential communities. These service areas were created for the purpose of determining whether particular geographical areas were deficient in teens of park and recreational facilities and to identify acquisitions or improvements which would provide residents with greater recreational opportunities. Accordingly, park fees generated by a subdivision within any services are may be used to create new, or rehabilitate, existing park or recreational facilities within that services area and as provided in the Recreation and Open Space Element. 1 36 D-I B. Implementation Schedule. Park fees shall be placed in the General Fund immediately upon receipt with a special designation as Park Fees. These funds, after special designation, shall be used solely for the acquisition or establishment of new, or the rehabilitation of existing, park, open space and recreational facilities. The park fees shall also be placed on a schedule that lists the location of the subdivision, the fees paid, the date on which the fees were paid or the date on which building permits had been issued for 1/2 of the lots created by the subdivision (whichever occurs later), the service area within which the subdivision is located, the neighborhood park, recreation and open space facilities eligible for park fees generated by that subdivision, the date on which the park fees must be committed to specific project of improvements. The park fees shall be used only for the park and recreation facilities identified in the Recreation and Open Space Element and shall be utilized in accordance with the policies and standards specified in the General Plan. Designations for expenditures will be made as part of the annual budget adoption. [Attachment - Exhibit A) Adopted - June 27,1994 Amended - April 23, 2002 Amended & Reassigned - April 8, 2003 Amended - April 13, 2004 Amended - September 13, 2005 Formerly I -1 2 3� EXHIBIT A PARK DEDICATION POLICY PARKS GUIDE The following view parks serve as citywide resources by reason of their unusual beauty and the view provided: Back Bay View Park Bayview Park Begonia Park Channel Place Park Cliff Drive Park. Corona del Mar State Beach Park Ensign View Park Galaxy View Park Inspiration Point Irvine Terrace Park Castaways Park Jasmine View Park Kings Road Park Lido Park Lookout Point Newport Island Park Peninsula Park Rhine Wharf Park West Jetty View Park Westcliff Park The following Community and Neighborhood Parks serve as citywide resources by reason of the unique recreational opportunities they offer: Arroyo Park - Lighted multi - purpose field, basketball court, picnic areas and playground. Bonita Canyon Sports Park - Four youth baseball fields, one multi - purpose field, one soccer field, tennis courts, basketball court, 2 playgrounds and connecting trail to Arroyo Park. Bonita Creek Park - Community center, lighted softball and multi- purpose field, and basketball court. Buffalo Hills Park - Basketball court, baseball /softball diamond, volleyball court, multi- purpose fields. Carroll Beek Community Center and Balboa Island Park - Basketball court, tot playground and community center. Coastal Peak Park —Two baseball fields, playground, two_pienic pavilions and basketball Court. Community Youth Center /Grant Howald Park - Basketball court, tennis courts, community center, softball and multi- purpose field. 3 37 Eastbluff Park - Baseball diamond, multi - purpose field, and view of the Back Bay. Harbor View Nature Park - Natural vegetation area. Las Arenas Park - Lighted tennis courts, basketball court and community center. Lincoln Athletic Center - Gymnasium, lighted baseball /softball diamond and multi- purpose fields. Mariners Park - Multi- purpose room, baseball /softball facilities, racquetball courts, lighted tennis courts, multi- purpose fields, and an ADA equipped play area. OASIS Senior Center - Multi- purpose senior facility= with classrooms and large multi- purpose room. Peninsula Park - Beach sited multi - purpose field, playground (ADA compliant), picnic and barbecue facilities, baseball /softball diamond and gazebo. San Joaquin Hills Park - Tennis courts, pentanque courts and lawn bowling facility. San Miguel Park - Ball diamond, athletic field, four racquetball courts, basketball court and an ADA equipped play area. Theater Arts Center - Ninety seat community theater. West Newport Park - Tennis courts, racquetball courts, basketball court, and 3 playgrounds. 38th Street Park - Basketball courts and playground (ADA compliant). 4 39 M INSTRUCTIONAL RECREATION ACTIVITIES The instructional recreational programs for children and adults provided by the Recreation & Senior Services Department will be conducted on the basis of being at least self - supporting. Registration fees will be based on an amount sufficient to acquire independent contractors, class materials and the administrative overhead and a facility use fee. Occasionally, it may be necessary to conduct a specific class in which revenues are not sufficient to be self - supporting. However, each total recreation program, such as tennis, sailing, surfing, etc., will be at least self - supporting. The Recreation & Senior Services Director or designee is authorized to enter into agreements for securing independent contractors for approved instructional recreation activities. A sum of money equivalent to 10% 20°� of the gross annual revenues derived from the instructional classes in surfing shall be set aside and used for the purpose of purchasing new or replacement surfboards or development of aquatic and surf related activities. A total of 20% of the registration fees from tennis instructional classes shall be set aside annually for refurbishment or development of courts or development of new recreational programs or facilities. A total of 20% of the registration fees from the sailing instructional classes and 100% of the proceeds from the agreement for the use of the 29th Street public dock shall be set aside annually for refurbishment and replacement of the recreation sail boat fleet and development of waterfront activities program. Adopted - October 1963 Amended - August 30, 1966 Amended - November 25, 1968 Amended - March 1970 Amended - April 12, 1971 Amended - August 9,1971 Amended - February 14, 1972 Amended - March 13,1972 Amended - November 11, 1974 Amended - March 24, 1975 Amended - December 8, 1975 Amended - November 27, 1978 Amended - November 28,1988 Reassigned - January 24, 1994 Amended - February 27, 1995 Amended - December 14, 1998 Amended - May 8, 2001 Amended - April 8, 2003 Amended - April 13, 2004 Amended - September 13, 2005 Amended - October 10, 2006 1 THIS PAGE LEFT BLANK INTENTIONALLY 0 SPECIAL EVENT PERMIT REQUEST PROCESSING PURPOSE To set forth City policy concerning administration and control of special events. Special events include activities as defined in Chapter 11.03 of Title 11 of the Newport Beach Municipal Code. Requests that include activities for which the Municipal Code requires that a permit be obtained may be included in the special event permit process. POLICY It is the policy of the City Council to ensure that the numerous special event activities permitted by the City do not negatively affect the community, that requests for permits are efficiently processed by staff, that City liability is eliminated, that all appropriate insurance requirements are met, and that costs for municipal services provided are kept at a reasonable level and recovered from the event sponsors. Affected City departments shall be notified of special event permit requests in accordance with the schedule attached and provide recommendations on how to conduct the event safely, lawfully and with a minimum negative impact on the community. It is the responsibility of the Recreation & Senior Services Director to coordinate the administration of special events and to be the central contact point for residents or other event sponsors, as well as the various City Departments having influence or control over aspects of any given event. Requests for special event permit applications will be received by a special event e c.4 nator— ervisa in Recreation & Senior Services and routinely routed to appropriate departments for investigation. Each department will investigate the proposed event and make a recommendation for approval or denial of the event. If recommended for approval, recommended conditions for approval will also be presented. Events that include the following activities or aspects shall be additionally reviewed by the departments indicated: Activity Fireworks Tents & Canopies Requests on the Harbor Reviewing Department Fire Department Police Department City Manager Fire Department Building Department Harbor Resources Division Sheriff's Harbor Department Requests on the Balboa Pier Public Works Department Requests on McFadden Plaza Requests on the Newport Pier Requests on Public Beaches Requests in a Public Park Requests to Deviate from Use Permit Requests at a Commercial Location Signs & Banners on Private Property Signs & Banners on Public Property Amplified Sound at a Commercial Location Amplified Sound at a Residential Location Temporary Street or Sidewalk Closures Sidewalk Sales Use of Public Property Public Food Service Use of Back Bay Drive r-M Public Works Department Public Works Department Harbor Resources Division General Services Department Fire Department Recreation & Senior Services Department General Services Planning Department Planning Department Planning Department Public Works Department Planning Department Police Department Police Department Revenue Division Public Works Department General Services Department Public Works Department Planning Department Risk Manager Health Department Department of Fish & Game General Services Department Public Works Department Countv of Orange 2 ME If each department reviewing a special event permit application recommends approval of issuance of the permit, a permit will be issued to the applicant listing the conditions provided by each department. The City Council may authorize approval of any request for special event permit when: A. Required by Municipal Code. B. When a Level 3 Special Event Permit has been denied and the applicant chooses to appeal the denial. Adopted - January 24,1994 Amended - February 24,1997 Amended - May 8, 2001 Amended & Reassigned - April 8, 2003 Amended - April 13, 2004 Amended - September 13, 2005 Formerly 1 -7 q� THIS PAGE LEFT BLANK INTENTIONALLY qy B -12 CO- SPONSORSHIP OF ANNUAL FIREWORKS EVENTS The City of Newport Beach recognizes that the annual Independence Day fireworks event, provided in- ��by the private resort operated within the lower Back Bay, is a worthwhile event benefiting many City residents. Moreover, the fireworks display is enjoyed by the citizens as a community and family event. Therefore, when fireworks events are -prev4ded - scheduled at this location by the private resort in commemoration of Independence Day, the City Council may authorize a City ntributien of tip annually budget an amount between $20,000 and $40,000 for the fireworks events, provided that (1) City residents have free access to the event, with the exception of newinal -- parking fees; (2) the City is recognized as a co- sponsor of the event in all publicity and promotional materials for the fireworks display; and (3) the applicant provides evidence of insurance with the City named as an additional insured, the amount of coverage determined by the City Manager and the Risk Manager. Adopted - March 9, 1998 Reassigned - April 8, 2003 Formerly 1 -24 u5 THIS PAGE LEFT BLANK INTENTIONALLY L' b PUBLIC USE OF CITY FACILITIES PURPOSE MW City of Newport Beach (City) facilities, which include parks, playing fields, gymnasiums, community rooms and swimming pools, are available to the public for civic, social, educational, athletic_ arm cultural activities and limited commercial use. It is the intent of this Policy to provide use regulations and application and scheduling procedures to accommodate d44-groups that wish to use City facilities. PROCEDURE A. Applications to use the City facilities must be made on forms provided by the Recreation & Senior Services Department (Department). Applicants must provide all information as may be required by the Department to assure compliance with the requirements and regulations of this Policy. B. Applicants will be required to pay a security etearring-deposit in an amount that will promote use of the Recreation & Senior Services facilities in an orderly manner without damage to the facilities. Security cleaning- deposits will be refunded upon inspection of facilities and confirmation that no property damage has occurred or additional clean up is required. C. Applicants will be required to acknowledge that neither the City nor the Department assumes any liability for injury or loss of personal property. Prior to the use of the facility, the application must have approval of the Recreation & Senior Services Director or designated representative. D. Approval of denial of a reservation applieation -re nest will be provided within five working days of receipt of a completed application. E. Reservations for use of Department facilities may be made up to six months in advance, but no later than five -ten working days before the event with the exception of park reservations which may be made no later than five working days before the event. Any efga izatien Gjt�, f;ieilities oil an Ongoing basis . F. The City is not liable for any and all accidental injury to any and all persons or loss or damage to group or individual property. When it is deemed to be in the best interest of the general public, the City will require the permittee to furnish a Certificate of Insurance naming the City of Newport Beach as an additional insured. The amount of the insurance shall not be less than $1,000,000 per occurrence of commercial general liability insurance. G. A contract shall not be transferred, assigned or sublet. All contracts will be issued for specific facilities and for specific hours, and the premises must be vacated as scheduled. H. The ;.,,r4ea4on- reservation request and rental agreement must be completed and signed by an adult age 21 and over who will attend, supervise and be responsible for the entire event or activities. Proof of residency e-is required at the time of application in order to receive the resident rate. Proof oi' non - profit status is required at the time of application in order to receive the non- profit rate. t. A Facility Use Agreement which authorizes the rental of Cacilities may be revoked for violation of any rental policies. q] B -13 REGULATIONS AND RESTRICTIONS All uses of Department facilities will be subject to the following regulations and restrictions: A. Use of Alcohol 1_A. Alcoholic beverages are prohibited and shall not be permitted in or on any municipal facilities operated by the Department, except beer and wine may be served for special occasions at the OASIS Senior Center, Riel«; purpese f:eo r afi Newport Theatre Arts Center (NTAC), and Newport Coast Community Center (NCCC) when done in compliance with State of California Department of Alcoholic Beverage Control (ABC) regulations and approved in writing by the Recreation & Senior Services Director. Approval to serve beer and wine at the OASIS See r - shall not be deemed to approve service of alcohol in violation of Section 25604 of the Business and Professions Code. The Recreation & Senior Services Director will require the permittee to pay City costs to provide additional security when alcohol is served. 2. The use of alcoholic beverages is by written permission only and must be requested at the time the facility use request is submitted The Department reserves the right to place restrictions on the use of alcoholic beverages in accordance with State Law and these guidelines. "Alcohol use" means the presence of any beverage that contains any amount of alcohol. 3. Alcohol is not allowed when an event is designated for minors such as school age award programs, biithday parties and /or receptions. 4. When alcohol is served there shall be a minimum of two security guards present at the facility at all times The guards must arrive 30 minutes before guest arrival time and remain until the contract end time One guard must be positioned at the entrance of the event and one guard positioned in the event area The parking lot must be monitored every 30 minutes. The security guards shall have the authority to enforce all rules and rr"ulations governing facility rentals In the event that the Police are called the cost of their services shall be deducted from the applicant's security deposit. The applicant will be billed for any costs exceedin , the security d- osit. 5. No alcoholic beverage shall be served to anVperson less than 21 gars of age Injuries caused to any person as a result of alcoholic beverages being served to or consumed by someone under the age of 21 while on the City's premises shall be the sole responsibility of the organization or individual renting the facility, 6. The distribution or consumption of alcoholic beverages shall be in compliance with all applicable laws including regulations of the ABC Any organization using City facilities shall be solely responsible for obtaining all permits or licenses relating to the distribution and consumption of alcoholic beverages on the premises 7. Alcohol may only be served by an adult 21 years of age or older. If evidence is found that alcohol is being served that was not authorized by the Department or to a minor the Police will be notified and the event will be terminated and all fees and deposits will be forfeited. q B -13 8. The City shall require the applicant to carry general liability insurance when alcohol is available, but not sold. The City shall require a full liquor liability_ premium in addition to general liability insurance when alcohol is sold in exchange for monev. The cost ol' the _ required liability insurance shall be borne by the applicant. B. Smoking is prohibited in all City facilities including restrooms and within 20- 25feet of all entrances, windows. and within 25 &et of a4-playgrounds. C. For all indoor facility rentals involving youthng- pesple, 173 8 -years and under, there shall be at least one adult for every 20 minors, or increments thereof, in attendance, who shall remain in the facility for the duration of the activity. D. No group's activities shall interfere with the administration of the Department. E. Non - profit 501 (c) (3) groups may use the facility for fundraising activities and charge entrance fees and collect donations provided that a detailed plan of the event, including the expenses, marketing plan and procedure for collecting fees, is submitted with the rental application. The group t,.easiiFef will be ._q"uii_ed to su- I.M.., c :........... _,,...,.. -t a, activity F. Facilities and equipment are to be left in the same condition as they were prior to. the rental. The permittee is responsible to pay for any damage to property or loss of property. A fee equal to total replacement cost will be charged. It shall be the responsibility of the permittee to see that unauthorized portions of the facility are not used. Continued or repeated use of City facilities will be contingent upon care of the facility, property and equipment, and observance of all approved rules and regulations. G. No gambling of any kind shall be conducted on, or in, City facilities, and the permittee shall insure that no disorderly or illegal conduct shall be allowed in any facility. H. The use of public address equipment will be limited to that provided by the facility, unless written approval has been secured by the Department through a Special Event Permit. I. Private groups wishing to collect fees, donations or admission charges, or those using the facility to market a product. ivg e a presentation, or advertise their business, will be considered commercial users. J. The eapae-ity-posted occupancy of City facilities shall not be exceeded. K. Storage space will not be granted at anytime. L. Facilities are not available for reservations on the following holidays; Christmas Eve, Christmas Day, Easter, President's Day, Independence Day, Labor Day, Martin Luther King Day, Memorial Day, New Year's Eve, New Year's Day, Thanksgiving and Veteran's Day. M. All persons using the facilities shall observe and obey regulations of this policy, the rules of the Department and all applicable City, State and Federal laws, rules and regulations. N. Vehicles are not ermitted on park <_>rass or fields. Parking is }permitted in designated spaces. O. Minors must remain in the rented facility room and shall not be allowed to roam unsupervised throughout the facility. 1q B -13 FEE CLASSIFICATIONS - PRIORITIES OF USE Permission for use of City facilities shall be granted on a first come first served basis, subject to the following priorities: A. All official Department initiated and/or conducted activities, including those of the Friends of OASIS at the OASIS Senior Center and exemptions noted in City Council Policies B -5 and 8 -10. B. All official City of Newport Beach activities. C. All official City co- sponsored groups and/or activities such as community groups and activities which are non - profit, self governing, privately organized and of an educational nature which may be brought under the sponsorship of the R- eereation & Senior `` f",iees Department. D. Official public agency sponsored programs and activities not included in A, B, and C above. E. Youth Sports Commission Member Organizations. F. Resident non - profit youth serving organizations with 50% or more of membership consisting of Newport Beach residents. G. Recreational, social or civic activities of groups which are resident promoted and sponsored by local non - profit* organizations which are open to the public and have 50% or more of memberships consisting of Newport Beach residents. H. Recreational or social activities of private Newport Beach residents which are not open to the public. (private parties) I. Recreational, social or civic activities and/or groups which are non - resident promoted and sponsored by non - profit organizations which are open to the public, but not qualifying under D above. J. Schools, colleges, hospitals and other similar civic groups not qualifying under the definition of non - profit. K. Others. * Non-profit status is defined as an organization that is so defined by the Internal Revenue Service, § 501(c) (3) and has a State of California Tax Identification Number. FEES, DEPOSITS AND CANCELLATION PROCEDURES Fees may be charged for the use of City facilities and shall be established and periodically adjusted by the o.,_', . Beas es 9. ° r'omw4ssio -and approved by the City Council. Fees are imposed to cover overhead, processing, deposits, maintenance and replacement costs for application and scheduling and maintenance of the facilities. A. A security deposit will be required for all room rentals. All or a portion of the deposit may be retained by the Department after inspection of the facility by the Recreation & Senior Services Director or a designated representative and a determination that the facility has not been left clean and/or in good repair. B -13 B. A separate additional cleaning fee will be charged for rental of the OASIS Senior Event Center, Newport Coast Community Center and Community Youth Center, —mLilti purpese feeffl- C. No fee or deposit shall be charged for use of City facilities by the City of Newport Beach, or events co- sponsored by the City of Newport Beach or its departments, with the exception of set -up charges and fees F,_ lighting ki.,age D. Cancellations for any facility other than the OASIS Event Center. Newport Coast Community Center and Community Youth Center Senief Center _ may occur seventy -two hours prior to the scheduled use of facilities without forfeiting fees collected by the City, with exception of a City service refund processing fee. Cancellations with less than seventy -two hours notice will be charged a cancellation fee established by resolution of the City Council. In the event of cancellation by the City, notice will be given as far in advance of the scheduled use as possible. E. Cancellation of rentals by users for the OASIS Event Center, Newport Coast Community Center and Cotmnunity Youth Center _' ' that occur less than thirty days prior to the scheduled use of the facility will be charged 25% of the rental fee. Cancellations with less than seventy -two hours notice will be charged the entire rental fee. Adopted - May 26,1998 Amended - May 8, 2001 Amended - April 23, 2002 Amended & Reassigned - April 8, 2003 Formerly I -25 Amended - July 22, 2003 Amended - September 13, 2005 Amended - October 10, 2006 51 THIS PAGE LEFT BLANK INTENTIONALLY 5 2- B -14 TEMPORARY SIGNS WITH SPONSORSHIP RECOGNITION IN CITY PARKS AND BEACHES Temporary signs which recognize sponsorship of City sponsored or co- sponsored sports programs may be posted in a City park or beach when the signage complies with the criteria set forth in this policy. The Recreation & Senior Services Director will require that sponsorship signs meet the following guidelines and that any other approvals which may be required are obtained: A. The signage must relate to a program sponsored or co- sponsored by the City of Newport Beach. B. The signage must: 1. Not exceed twenty -four (24) square feet in size; 2. Be posted in a location not visible from public streets and pre- approved by the Recreation & Senior Services Department; 3. Be posted only during the designated priority season for that sports group; 4. Be aesthetically appealing, with consideration for the surrounding area as detennined by the Recreation & Senior Services Director.: C. No signage related to alcohol or tobacco is permitted. D. The applicant is responsible for placement and removal of signage and for storage, damage, theft, or loss of any sign posted. Adopted - September 14, 1998 Amended & Reassigned - April 8, 2003 Amended -April 13, 2004 Amended - September 13, 2005 Formerly 1 -26 53 THIS PAGE LEFT BLANK INTENTIONALLY 6U STATEMENT OF INVESTMENT POLICY PURPOSE F -1 To set forth the City's policy concerning the investment of temporarily idle funds. It is the policy of the City to invest funds not required for immediate expenditures. Investments will be in compliance with governing provisions of law and the policy contained herein. Primary investment goals are security of principal, adequate liquidity maintenance, and yield, in that order. Investments shall be placed only in securities as outlined below. The balance between various investment instruments may change in order to provide the City with the best combination of yield, liquidity, and a consideration for other factors, such as placement of an appropriate percentage of available investment funds locally. It shall be the main responsibility of the City Council, in adopting this policy and reviewing the investment holdings on a monthly basis, to preserve the investment principal. INVESTMENT AUTHORITY Under the direction of the City Manager, the investment authority has been delegated . to the Director of Administrative Services, who is responsible for administration of the City's investment program, and who shall thereafter provide a monthly report regarding the status and changes in the City's investment portfolio to the City Council. This authority shall be renewed annually as part of the review and update of this Policy. In addition to the monthly investment report that is submitted to the City Council, the Administrative Services Director shall provide more detailed investment information to the City Council as requested. The City Council shall be briefed directly by the City's investment advisors on a quarterly basis whenever possible. Sections 53600 -53601 of the California Government Code provide basic investment limits and guidelines for government entities. In the event an apparent discrepancy is found between this policy and Sections 53600- 53601, the more restrictive parameters will take precedence. FINANCIAL INSTITUTIONS The City shall not deposit funds with any financial institution not receiving a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation ( §53635.2). 1 SS F -1 LIQUIDITY Sufficient funding to accommodate at least two- week's projected cash outflow is to be maintained in immediately available investments, such as the State Local Agency Investment Fund, maturing certificates of deposit, or similar liquid instruments. An analysis of cash flow must be conducted at least weekly to serve as the basis for determining appropriate maturities for investments. At no time shall the liquid cash on hand be less than 5 percent of the City's total investment portfolio. For purposes of this policy, cash on hand includes all cash and investments accessible within 48 hours. ACCEPTABLE INVESTMENT INSTRUMENTS The following are types of investments made by the City and the guidelines for investing in each. In all cases, investments shall be made in the context of the "Prudent Investor Standard," spelled out in the California Government Code, Section 53600.3 as follows: "When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investment may be acquired as authorized by law." In this light, the City of Newport Beach does not purchase or sell securities on margin. Additionally, any institution, which holds either the collateral or the investment instruments themselves in safekeeping for the City, must maintain at least one billion dollars ($1,000,000,000) in assets. A. Certificates of Deposit Only fully collateralized certificates of deposit with FDIC insured institutions will be utilized in investment of City funds. Government securities having a market value of 110 percent of the total amount of investment are acceptable as `A 5(0 F -1 collateral. Noncollateralized CD investments may be made in amounts less than the FDIC limit,$100,000 so long as they are fully insured by the FDIC. Not more than 10 percent of the City's investment portfolio shall be invested in certificates of deposit with any one institution. CD's will not be placed for a period of longer than one year. Further, an institution must meet the following criteria to be considered by the City: 1. The institution must maintain at least $1 billion in assets ($100 million for fully insured CD =s up to the FDIC limit „c e, nn nnn e_ less) 2. The institution must have been in business at least three years. 3. The institution must have a net worth to asset ratio of at least 6 percent. 4. The institution must place and maintain on file with the City an audited financial statement not more than one year old. 5. Interest shall be paid to the City on a monthly basis. Consistent with the requirements for CD investments, funds deposited in savings accounts must either be FDIC insured or collateralized. B. Negotiable Certificates of Deposit As a matter of policy, the City invests in Negotiable Certificates of Deposit CDs only with U.S. Banks whose underlying securities are rated A -1 or P -1 by one of the top two rating agencies and having assets in excess of $10 billion, so as to insure security and a large, well - established secondary market. Ease of subsequent marketability is further ascertained prior to initial investment by examining currently quoted bids by primary dealers and the acceptability of the issuer by these dealers. No one issuer shall exceed more than 10 percent of the portfolio, and maturity shall not exceed one year. The California Government Code Section 53601 limits investment in negotiable certificates of deposit to 30 percent of the portfolio. 9 �7 F -1 C. Bankers Acceptances The City may invest only in Bankers Acceptances issued by the 100 largest banks in the world, which are eligible for purchase by the Federal Reserve System, the short term paper of which is rated at the highest category by Moody's and Standard & Poor's. In the case of foreign banks, the Bankers Acceptances must be written by their U.S. branches, Maximum maturity shall be 180 days. No more than 30 percent of the City's overall investment portfolio shall be placed in Bankers Acceptances, with no more than 10 percent of the City's portfolio invested in the banker's acceptances of any one commercial bank. D. U.S. Treasury Issues The City may invest in treasury notes, bills and bonds. The finalMaximu maturity of any U.S. Treasury issue shall not exceedbe five years from the date of trade settlement. E. Federal Agency or United States Government-Sponsored Enterprise Obligations Securities of this type that are acceptable for the City's investments are Federal National Mortgage Association, Federal Home Loan Bank notes, Federal National Mortgage Association notes, Federal Farm Credit Bank notes, Federal Home Loan Mortgage Corporation notes, or any other U. S. Government Agency security. F. Commercial Paper The City may only invest in commercial paper of "prime' quality with the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical- rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2). 1. The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated "A" or higher by a wally NRSRO. E 0 F -1 2. The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (C) Has commercial paper that is rated "A -1" or higher, or the equivalent, by a nationally re ee statistieal rating „ atie .NRSRO. Commercial paper shall be used solely as a short -term investment not to exceed 270 days. No more than 25 percent of the City's portfolio may be invested in commercial paper. Investment in commercial paper of any one issuer shall not exceed 10 percent of the portfolio. G. Repurchase Agreements (Repos) and Reverse Repurchase Agreements Repos and reverse repos shall be used solely as a short -term investment not to exceed 30 days. The institution from which the City purchases a Repo must deliver adequate collateral to the City's safekeeping account (either directly or through a third party safekeeping agent), consisting of U.S. Treasury or Agency securities at the rate of 102 percent of the face value of the repo. The amount of this collateral must be sufficient to compensate for fluctuating market conditions. Repos will only be purchased from Primary Dealers. The City must own assets for more than 30 days before they can be used as collateral for a reverse repurchase agreement. No more than 10 percent of the portfolio can be involved in reverse repos. IH. Local Agency Investment Fund (LAIF) (State of California) State Regulation of LAIF is set forth in California Government Code Section 16429.1. The current limits on any one City investment in this fund is $40 million, and the number of transactions (deposits or withdrawals) is limited to 15 per month. The City's participation in LAIF shall conform to State Regulation, In general, it is the City's intention to use investment in LAIF as a temporary 5 '39 F -1 repository for short -term funds needed for liquidity purposes. The Administrative Services Director shall maintain on file appropriate information concerning LAIF's current investment policies, practices and performance; as well as its requirements for participation, including, but not limited to, limitations on deposits or withdrawals and the composition of the portfolio. JI. County Investment Funds Los Angeles County provides a service similar to LAIF for municipal and other government entities. This Fund is available to certain cities outside of Los Angeles County, including Newport Beach. Investment in this pool is intended to be used as a temporary repository for short -term funds used for liquidity purposes. At no time shall more than 5 percent of the City's total investment portfolio be placed in this Pool. The Administrative Services Director shall maintain on file appropriate information concerning the county pool's current investment policies, practices and performance; as well as its requirements for participation, including, but not limited to, limitations on deposits or withdrawals and the composition of the portfolio. The City shall not invest funds with the Orange County Pool. K1. Medium Term Corporate Bonds/ Notes Investments of this type will only be in corporations rated A or better by a nationally r a r^ 2rviEesNRSRO. Maximum term to maturity for individual securities shall not exceed four years. No more than 30 percent of the City's investment funds shall be placed in securities of this type. Federal Agency or United States Government - Sponsored Enterprise Obligations Securities of this type that are acceptable for the City's investments are Federal National Mortgage Association Federal Home Loan Bank notes, Federal National Mortgage Association notes, Federal Farm Credit Bank notes, Federal Home Loan Mortgage Corporation notes FDIC Insured notes, or any other U. S. Government Agency security. LK. Mortgage- backed Securities and Asset - backed Securities Investments in securities of this type are limited to mortgage- backed pass - through securities issued by a US government agency; or consumer receivable 6 R F -1 pass- through certificates or bonds. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by Moody's Investor Services and S &P. The security itself shall be rated in a rating category of "AAA" or its equivalent or better by Moody's Investor Services and S &P. The maximum final stated maturity of any security of this type shall be five years. No more than 20% of the City's investment funds shall be placed in securities of this type. ML. Municipal Bonds Municipal bonds rated AAA, or AA and insured, are acceptable investments for the City. Investments of this type are limited to obligations of the State of California and local agencies within the State. Not more than 15 percent of the portfolio shall be in investments of this type. NM. Money Market Funds The City may invest in Money Market Funds subject to the following constraints. Investment in these funds is primarily intended for short -term "sweep account" purposes, not for longer -term investments, 1. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a -1.) 2. The company shall have met either of the following criteria: a. Attained the highest ranking or the highest letter and numerical rating provided by not less than two statistirzal rating NRSROs. b. Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than ten years' experience managing money market mutual funds with assets under management in excess of one billion dollars ($1,000,000,000). 7 �1 F -1 3. The purchase price of shares of beneficial interest purchased shall not include any commission that the companies may charge. 4. No more than 20 percent of the City's investment portfolio shall be invested in money market funds. 5. The City shall invest only in Money Market Funds that have a policy of maintaining a constant daily net asset value per share of $1.00. CONCENTRATION AN DIVERSIFICATION No more than 5% of the portfolio may be invested in instruments of any one non- governmental issuer. There are no concentration restrictions for U.S. Treasury, FDIC - guaranteed, or other federal agency securities, unless otherwise specified herein. asset/ investment managers (see below) must insure that the portion of the investment portfolio within their cognizance complies with this constraint on a pro -rata basis.: PROHIBITED INVESTMENTS Consistent with California Government Code 53601.6, inverse floaters, range notes, mortgage derived interest -only strips, or any security that could result in zero interest accrual if held to maturity are specifically prohibited, except to the extent that they are shares of diversified management companies registered under the Investment Company Act of 1940. The City shall not purchase any security rated Al and / -or A+ or below if that security has been placed on "credit watch" for a possible downgrade by either Moody's Investor Services or Standard &ate Poor's. Investments not specifically approved by this policy are prohibited. ASSET/ INVESTMENT MANAGEMENT AGREEMENTS The City may employ the services of asset/ investment management companies. Such companies must have a history of producing ^uses and relatively high net returns with conservative investment portfolios, while strictly complying with statutory policy provisions. They must also be well established and exceptionally reputable. 0 F -1 Members of the staffs of such companies who will have primary responsibility for managing the City's investments must have a working familiarity with the special requirements and constraints of investing municipal funds in general and this City's funds in particular. These firms y must insure that the portion of the portfolio under their management complies with various concentration and other constraints specified herein, and contractually agree to conform to all provisions of governing law and the collateralization and other requirements of this policy^ein. They must also provide monthly and quarterly reports as specified in the Reporting Requirements section below, and as otherwise requested by the Administrative Services Director. At no time shall more than 30 percent of the City's total investment portfolio be placed in any one investment management account. In order to implement this requirement, the City's portfolio assets will be reallocated annually among its investment managers. SAFEKEEPING /THIRD PARTY CUSTODIANS All cash and securities in the City's portfolio, including those that are being managed by private sector asset/ investment management companies, shall be held in safekeeping in the City's name by a third party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. The City will contract separately with major banks or other well - established, reputable financial institutions, which provide custodial services to maintain custody of cash and securities in the City's portfolio. In the case of a major financial institution, the City may have an asset /investment management relationship, and a custodial relationship, with the same entity. However, the services must be provided by separately managed departments within that entity, and the City's assets must be held in the City's name completely separate and distinct from the assets of the institution and from all other portfolios managed by the institution. All securities will be received and delivered using standard delivery versus payment (DVP) procedures, the City's safekeeping agent will only release payment for a security after the security has been properly delivered. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; and, (ii) money market mutual funds, since the purchased securities are not deliverable. 0 63 F -I BOND PROCEEDS The investment of bond proceeds will be made in accordance with applicable bond indentures. RATING AGENCY CHANGES In the event a security held by the City is the subject of a rate drop which brings it below accepted minimums specified herein, or the security is placed on negative credit watch, where downgrade could result in a rate drop below acceptable levels, the investment advisor who purchased the security will immediately notify the Administrative Services Director or Deputy Director of that fact. The course of action to be followed will then be decided on a case by case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further drop, and market price of the security. The City Council will be advised of the situation and intended course of action by e -mail or fax. REPORTING REQUIREMENTS In addition to the Monthly Investment Report, the City Council and City Manager shall receive a detailed quarterly listing of all investments in the City portfolio upon request. The report twill show the type of investment, issuer, date of maturity, par and dollar amount of deposit/ investment, and rate of interest. Fees charged by investment advisers and custodians under contract to the City will also be rovided if requested, Quarterly reports from outside investment managers, which are regularly reviewed by the Administrative Services Director, must also include market valuation of assets under their management and the source of that valuation, and shall also include a statement of compliance with investment policy. Current ratings of non - government securities, either Moody's or Standard & Poor's, will be included. In his report to the City Council, the Director of Administrative Services shall include a statement denoting the ability of the City to meet its expenditures for the next six months, and shall also include a statement of compliance with investment policy for assets under his direct management. In addition, the City Council shall be notified whenever 5 percent or more of the total portfolio is invested, withdrawn, or moved from one Investment Advisor or Pool to another. 10 6� Adopted - April 6,1959 Amended - November 9,1970 Amended - February 11, 1974 Amended - February 9,1981 Amended - October 27,1986 Rewritten - October 22,1990 Amended - January 28,1991 Amended - January 24,1994 Amended - January 9,1995 Amended - April 22,1996 Corrected - January 27, 1997 F -1 Amended - February 24,1997 Amended - May 26,1998 Reaffirmed - March 22,1999 Reaffirmed - March 14, 2000 Amended & Reaffirmed - May 8, 2001 Amended & Reaffirmed - April 23, 2002 Amended & Reaffirmed - April 8, 2003 Amended & Reaffirmed - April 13, 2004 Amended & Reaffirmed - September 13, 2005 11 �5 THIS PACE LEFT BLANK INTENTIONALLY BUDGET ADOPTION AND ADMINISTRATION PURPOSE F -3 To establish the policy for the preparation, adoption, and administration of the City's Annual Budget. POLICY A. Revenues and Expenditures. With rare exceptions, the City's policy is to identify and separately budget and account for revenues and expenditures. However, in some cases the Administrative Services Director may determine that certain funding coming in to the City is more properly reflected as abatement to an expense than as revenue; or that certain expenditures of funds are more properly reflected as abatements to revenue than as expenses. The Accounting Division will keep note of all such entries, and maintain the ability to separately identify the component transactions. Examples of transactions where such recording is often appropriate are earnings on compensating balances, which directly offset the City's expenditures for banking services; and credit card processing charges, which decrease actual revenue received. B. Organization and Development of the Annual Budget. Each year the City shall prepare and adopt, by formal Resolution, an annual budget as required by the City's Charter and as provided for in the City's Budget Instructions. The Annual Budget is published in three volumes, the Resource Allocation Plan (RAP), the Budget Detail and the Capital Improvement Program (CIP). The RAP provides an overview of each department's mission, functions, statistical information, and budget. It also provides summary information regarding the Capital Improvement Program, as well as summary information for budgeted and historical overall City revenues, expenditures, and fund balances. The Budget Detail contains line by line information regarding operating expenditures for the prior year, current year and budget year. The CIP document provides a summary of current and future planned projects, basic descriptions of each project, the funding source and the scope of work to be performed. The City programs expenditures into four classifications. These are Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures. Capital Expenditures are subdivided into Capital Outlay, which is generally used for items of operating equipment or other purchases in excess of $500, and 1 C7 F -3 Capital Projects, which generally deal with Public Works related improvements for a distinct and identifiable purpose and function. Policy guidelines regarding budgeting for upkeep and improvement of City buildings are as follows. • Cleaning, maintenance, and minor repair expenses are funded within departmental Maintenance and Operations budgets. This includes janitorial, limited painting, and routine electrical, plumbing, and minor structural repairs. • Most capital equipment outlays are also budgeted at the department level. These include expenditures for furniture (free- standing and most built - ins), carpet replacement, and electronic equipment. • Building expenditures that are for a more substantial and relatively infrequent purpose are funded as Capital Improvement Projects above the departmental level. These include such items as roof replacements, significant plumbing and /or electrical upgrades, or remodels involving structural changes. Budgeted Expenditures for all four classifications are aligned in the Budget Documents by Department Budget Units, which usually coincide with Operating Divisions within the City's organizational structure; and, separately, by Capital Projects. Therefore within each Division Budget, there will be sections for Salaries. and Benefits, Maintenance and Operations, Other Charges, and Capital Outlay. During December of each year, the Administrative Services Department shall prepare preliminary fund balance estimates for the current year and preliminary revenue estimates for the next fiscal year. In January of each year, the Administrative Services Department shall prepare a budget calendar and issue budget instructions and expenditure detail to each department for use in preparation of the next year's City budget. Included in these instructions will be budget guidelines and appropriation limits for each department. These guidelines will be developed by the Administrative Services Director and approved by the City Manager. In accordance with City Council Policy F -2 (Reserves/ Designations of Fund Balance), the status and possible changes in Reserve Accounts shall be addressed as part of this process. N E F -3 After submission of revenue and expenditure appropriation requests by each department, the Administrative Services Department shall surrunarize the requests for review by the City Manager and Department Heads. After review by the City Manager and Department Heads, the Administrative Services Department shall prepare the City's proposed budget for the next fiscal year and shall submit said proposed budget to the City Council. Thereafter, the City Council shall hold as many budget study sessions as it deems necessary. Council budget study sessions shall be recorded. All proposed Council changes into the City Manager's proposed budget shall be added to on a budget checklist. Subsequent to Council review and prior to its final adoption, the City Manager shall provide eaEh C,.un a Member-with-distribute the budget checklist an itemized list e f all proposed ,.ti..... ges to permit a _,.n rail volt. by the City Council to approve en ach checklist item individually or the checklist by motionduring a Council meet in The City Council shall hold a budget hearing and shall adopt a budget on or before June 30 as required by the City Charter. C. Administration of the Annual Budget. During the budget year, Department Heads and their designated representatives may authorize only those expenditures that are based on appropriations previously approved by City Council action, and only from accounts under their organizational responsibility. In addition, budget expenditures may only be authorized in the year appropriated. Any unexpended appropriations, except valid encumbrances, expire at fiscal year end unless specifically reappropriated by the City Council for expenditure during the new fiscal year. Department Heads are responsible for not authorizing expenditures above budget appropriations in any given expenditure classification within their purview, without additional appropriation or transfer as specified below. 1. New Appropriations. During the Budget Year, the City Council may appropriate additional funds for special purposes by a City Council Budget Amendment. The City Manager has authority to approve requests for budget increases not to exceed $10,000 in any Budget Activity or Capital Project. (This must be specifically included in each year's Budget Resolution to remain valid.) 2. Grants & Donations. The City Manager may accept grants or donations of up to $30,000 on behalf of the City. However, if a new or additional appropriation is required, the City Manager's authority to create new 3 V,q F -3 appropriations is limited to $10,000 as stated above. The City Council will be formally notified of such actions on a quarterly basis by way of the City Manager newsletter to the City Council. (This provision must be specifically included in each year's Budget Resolution to remain valid.) Additionally, grant appropriations approved by City Council may be carried forward to the following fiscal year(s) as long as the grant terms remain valid, the expenditures are consistent with the previous Council authorization, and the funds would otherwise need to be returned to the granting or donor agency. Also, see Council Policy F -25 for specific grant acceptance and administration procedures. Grant contracts and restricted donations in excess of $30,000 must be specifically approved by the City Council. Occasionally, the terms and conditions of a grant are approved by City Council in a year prior to when the program activity will take place and therefore, the funds are not appropriated to carry out the grant at that time. In such cases, the City Manager may appropriate the funds when they are received, provided the expenditures clearly meet the amount, terms, nature and intent of the grant or donation previously approved by City Council. 3. Assessment District Appropriation. Assessment district projects are typically funded by property owner contributions and bond financing secured by property assessments. City staff will initially seek appropriation to advance City resources for the assessment engineering and the design work related to a proposed assessment district. Since the City's advance is at risk until a district is formed at a public hearing, the appropriation related to advanced resources shall be subject to the normal budget policies. However, once the district has been formed at a public hearing, the City Council will adopt a "project- length" budget for the district and City staff will be allowed to roll the appropriations forward into future fiscal years without rebudgeting the project through the formal CIP process. When assessment bonds are issued to finance the improvements, the bond issuance costs are estimated at the maximum amount that would be required to complete the improvements because it is not known how many property owners will opt to pay the assessment in full during the cash collection period. Finance staff will also have the authority to reduce 4 m F -3 Council appropriations (related to bond issuance costs) after bonds are resized and sold. 4. Transfers. During the fiscal year, actual expenditures may exceed budget appropriations for specific expenditure line items within departmental budgets. If a total departmental budget, within a specific Classification, is not exceeded, the Administrative Services Director has the authority to transfer funds within that Classification and Department, to make the most efficient use of funds appropriated by the City Council. (Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures are the City's four Classifications.) 5. Realignments. Further, funds may be realigned between one Department Budget Activity and another, within the same Classification, with City Manager approval. For example, if a Fire Department function and the employee who accomplishes it are replaced by a slightly different function assigned to the Police Department, the City Manager may authorize the transfer of appropriate funds to support this function. 6. Reprogramming. Any reprogramming of funds among the four Classifications (Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures) within a given fund requires the City Manager's approval. Any budget revision that changes the total amount budgeted for any fund (other than the minor provisions contained in paragraphs C.1. and C.76.b.) must be approved by the City Council. 7. Capital Projects. The Department Head having primary responsibility for a Capital Project (usually the Public Works Director) is authorized to encumber and approve subsequent expenditure of City funds for Capital Projects. However, contracts in excess of $30,000 require specific City Council authorization at the time of contract award. In addition, any contracts not of format and wording already approved by the City Attorney require specific City Attorney review and approval prior to contract award. Once a contract has been awarded, change orders may be approved by the Public Works Director, or other Department Head having responsibility for the Project, so long as the net total amount committed to the Project remains below 110 percent of the original contract award amount; and so 5 %! F -3 long as the original amount appropriated for the Project by City Council is not exceeded. Change orders exceeding the above thresholds may be approved by the City Manager as follows: a. Total spending for any single contract may not exceed 125 percent of the original contract award amount without City Council approval. In certain situations the Public Works Director and the City Manager may determine that a change order exceeding this 125 percent threshold is needed, and that the timing is such that a work stoppage or other undesirable consequence will result if approval of the change is delayed until the next City Council meeting. In those instances, the City Manager may approve a change up to 150 percent of the original amount. However, the City Manager will notify all City Council Members individually if this situation develops, and if there are any objections to the increase, a special meeting of the City Council will be called to address the issue. b. The total amount authorized for a capital improvement project may be increased by transferring funds from one Project to another or by reprogramming funds from any of the other three classifications (see C.6), so long as the new total does not exceed 110 percent of the original amount appropriated by Council. C. In the event that the transfer or reprogramming action in C.7.a. or C.7.b. above would result in a material reduction in the scope of the capital project or other City activity from which funds are to be withdrawn, City Council authorization is required. For example, the movement of five percent (5 %) of the funding from one large project to another large project of the same general category could be approved by the City Manager, whereas the elimination or significant reduction of two small, unrelated projects to provide funds for a five percent (5 %) increase in a much larger project would require City Council approval. In all instances, notification of any changes to capital project contract amount or budget authority must be communicated to the Administrative Services Director. -71 F -3 All unexpended and unencumbered capital projects will be canceled on June 30 of each fiscal year. The appropriation balance of these canceled projects will be recorded in the Reserve for Capital Improvements or another appropriate Reserve Account by the Administrative Services Director at fiscal year end (see also paragraph D.2. below). 8. Reserves. Funds from unappropriated contingency reserves may be transferred to active Classification accounts only by City Council Budget Amendment. D. Additional City Council City Manager, and Administrative Services Director Responsibilities. The Administrative Services Director is responsible for checking purchase requests against availability of funds and authorization as per the approved Budget. The City Manager is responsible for approving expenditures which do not conform to the approved Budget, but which fall within the exceptions noted in this policy statement. It is the responsibility of the City Manager to administer the City's budget within the framework of policy and appropriation as approved by the City Council. 1. Special City Council Expenditure Approval. Once the final Budget has been approved by the City Council, specific City Council approval to make expenditures consistent with the Budget will not be required, with two exceptions (see also Purchasing and Accounts Payable Procedures): a. Capital Projects in excess of $30,000. b. Contracts for services in excess of $30700050,000. All other budget administration actions, including the routine filling of vacancies in staff positions authorized within the Budget, will not require further City Council approval. However, new positions and other new expenditures do require City Council approval, and the City Council and City Manager reserve the right to impose any special fiscal control measures, including a personnel hiring freeze, and other spending controls, whenever circumstances warrant. Since the annual Budget is approved by formal Resolution, a request by a City Council Member for review of a portion or portions of the Budget, with a view toward changing amounts appropriated or the purposes for which they were appropriated, requires a majority vote of the City Council. 7 13 F -3 m F -3 2. At fiscal year end, the Administrative Services Director is authorized to realign, reprogram, and /or transfer money among accounts within each Fund in order to close the books of accounts of the City of Newport Beach in accordance with generally accepted governmental accounting principles as established by the Government Accounting Standards Board, Government Finance Officers Association, and other appropriate accounting or auditing pronouncements. Any net shortage within a Fund will be recorded as a decrease in Fund Balance and reported to the City Council. Any net excess will be recorded as an increase to one or more appropriate Reserve Accounts as recommended by the Administrative Services Director and approved by the City Manager. (Information regarding appropriation of Funds from the Reserve Accounts is contained in City Council Policy F -2.) Adopted - January 24,1994 Amended - February 27,1995 Corrected -February 26, 1996 Amended - May 13,1996 Amended - May 26,1998 Amended - August 8, 2000 Amended - May 8, 2001 Amended - April 23, 2002 Amended - April 8, 2003 Amended - April 13, 2004 Amended - September 13, 2005 Amended - October 10, 2006 Formerly F -10, F -11, F -12, and F -21 9 _5 THIS PAGE LEFT BLANK INTENTIONALLY CONSUMER PRICE INDEX PURPOSE F -6 To determine the Consumer Price Index to be used when making adjustments to approved City fees, charges, revenues, or expenditures. POLICY Unless specified otherwise, the Consumer Price Index to be used when making any adjustments to approved City fees, charges, revenues, or expenditures, shall be the "Los Angeles - Anaheim — Riverside - Orange County (1967 = 100) ALL URBAN CONSUMERS" Consumer Price Index. For purposes of computing the adjustment for reimbursement of Council expenses as provided for in Section 4028 and 404 of the City Charter, the base month and year shall be May, 1974. The annual adjustment shall be in accordance with the above- specified index. Adopted - January 24,1994 Formerly F -17 77 THIS PAGE LEFT BLANK INTENTIONALLY wil F -7 INCOME PROPERTY The City owns and manages an extensive and valuable assortment of property including streets, parks, beaches, public buildings and service facilities. The City also owns and operates a yacht basin, a mobile home park, a luxury residential development and various other income properties. Most of the income property is tidelands, filled tidelands or waterfront. Unencumbered fee value of income property is estimated at upwards of one hundred million dollars, and income typically contributes ten percent of all City revenues. As owner of property, the City is the steward of a public trust, and state law requires the City to maximize its returns or be subject to a charge of making a gift of public funds. Nevertheless, the City Council recognizes the importance of this property not only as a revenue generator, but also as a means to provide otherwise unfeasible uses and facilities to benefit the community. In managing its property, the City will continually evaluate the potential of all City o,�vned property to produce revenue. This may include leasing unused land, renting vacant space, and establishing concessions in recreation areas or other similar techniques. The City Council will evaluate the appropriateness of establishing new income properties using sound business principals and after receiving input from neighbors and users. The policy of the City Council is that income property be managed in accordance with the following: A. Whenever a lease, management contract, concession, sale or similar action regarding income property is considered by the City, an analysis shall be conducted to determine the maximum or open market value of the property. This analysis shall be conducted using appraisals or other techniques to determine the highest and best use of the property and the highest value of the property. B. All negotiations regarding the lease, management contract, concession, sale or similar action regarding income property shall include review of an appraisal or analysis of the use being considered for the property conducted by a reputable and independent professional appraiser, real estate consultant or business consultant. 1 -7 q F -7 C. The City shall seek, whenever practical and financially advantageous, to operate or manage all property and facilities directly with City staff or contractors. D. In all negotiations regarding the lease, management contract, concession, sale or similar action regarding a non - residential income property, the City shall seek revenue equivalent to the open market value of the highest and best use; and, whenever possible the City shall conduct an open bid or proposal process to insure the highest financial return. E. Whenever less than the open market or appraised value is received or when an open bid process is not conducted, the City shall make specific findings setting forth the reasons thereof. Such findings may include but need not be limited to the following: 1. The City is prevented by tideland grants, Coastal Commission guidelines or other restrictions from selling the property or converting it to another use. 2. Redevelopment of the property would require excessive time, resources and costs which would outweigh other financial benefits. 3. Converting the property to another use or changing the manager, concessionaire or lessee of the property would result in excessive vacancy, relocation or severance costs, which would outweigh other financial benefits. 4. Converting residential property to another use or opening residential leases to competitive bid would create recompensable liabilities and other inequities for long -term residents. 5. The property provides an essential or unique service to the community that might not otherwise be provided were full market value of the property be required. 6. The property serves to promote other goals of the City such as affordable housing, preservation of open space or marine related services. Vol F -7 F. Generally, lengths of leases, management contracts, concessions or similar agreements will be limited to the minimum necessary to meet market standards and will contain appropriate reappraisal and inflation protection provisions. Also, all agreements shall contain provisions to assure complete audits periodically through their terms. G. All negotiations regarding the lease, management contract, concession, sale or similar action regarding income property shall be conducted by the City Manager or his designee under the direction of any appropriate City committees prior to consideration by the City Council. H. To provide an accurate accounting of actual net revenues generated by the City's income property, all costs and charges directly attributable to the management of a specific income property shall be debited against the gross revenues collected on that property in the fiscal year the costs are incurred. Costs and charges include property repairs and maintenance, property appraisals, and consultant fees, as authorized by the City Council, City Manager or by this Income Property Policy. I. The City Manager is authorized to sign an amendment to the lease, mana eg ment contract, concession or similar agreement in order to correct anv errors or discrepancies in the agreement, or to clarify provisions in the agreement. The City Manager is also authorized to sig!2 an amendment if circumstances arise that were not reasonably foreseeable by the parties, which need to be addressed in an amendment. Notwithstanding the foregoing, the Cif Council shall authorize any amendment which increases or decreases the annual revenues in the agreement by $10,000 or more. Adopted - July 27, 1992 Amended - January 24,1994 Amended - February 27,1995 Amended - February 24,1997 Amended - May 26,1998 Formerly F -24 3 �iS . THIS PAGE LEFT BLANK INTENTIONALLY CITY TRAVEL POLICY STATEMENT PURPOSE To set forth the policy for official City travel and to establish procedures for reimbursement of expenses incurred by City Council members, appointed officials, members of special boards, commissions, committees, and employees while traveling overnight on official City business. This policy shall not apply for commuter (local) training seminars and local City business expenses, nor is it intended to supersede P.O.S.T. reimbursable travel policies established by the State of California or the Newport Beach Police Department. The governing rule for all City travel expenses shall be availability, economy, convenience, and propriety. TRAVEL POLICY A. The City shall provide reimbursement for expenses directly related to attendance at approved conferences, seminars, meetings, and other official functions/ purposes. B. Official travel is planned, approved, budgeted, and controlled at the Department level, except in specific cases described below. C. Authorized travel approved in the annual budget requires no further approval beyond the departmental level. If, however, it becomes apparent that the total travel cost will exceed the budget estimate, the approval of the Administrative Services Director must be obtained. Variations greater than twenty percent shall be referred by the Administrative Services Director to the City Manager for approval. The number of attendees representing the City at any given conference (or other function requiring expenditure of travel funds) will not exceed the number specified in the budget without Council approval (in the case of commission members), or Department Head approval (in the case of City staff or committee members). D. Unbudgeted, unplanned travel requests shall be submitted by the Department Director to the Administrative Services Director who will forward the requests to the City Manager for approval. Such requests shall include the proposed funding source for the travel (other travel canceled, reprogramming of other funds within the department, etc.). 1 V3 ran LAW E. Travel Expenses fall into two categories. 1. Those that are paid directly by the City or reimbursed to the traveler based on actual, itemized expenses. Lodging, airfare, rental car, fuel, parking fees, tolls, taxi - fares /local transportation, official telephone calls and conference registration fees fall into this category. Whenever practical, these expenses should be paid directly by the City. These itemized expenses shall be accompanied by receipts to obtain reimbursement. 2. All other expenses shall be covered by the per diem payment. These expenses include meals, laundry, tips, and all other expenses not specifically itemized above. F. The City's per diem rate is Priem U.S. General Services Administration's (GSA) M &IE rates. See www.GSA.gov for current rates. Travel days may be included in computing the requested per diem. If one or more meals are included as part of a conference registration, the M &IE rate should be reduced by the appropriate amount associated with the meals provided in proportion with the "M &IE Breakdown' as provided by the US GSA. The City Manager or Department Director may direct that travel expense reimbursement be at the actual cost of travel rather than the per diem rate when meals or other travel expenses are included as a part of the registration fee, or when other circumstances dictate such a decision, but in no instance shall the actual expense reimbursement for meals, etc. exceed the per diem rate. These itemized expenses shall be accompanied by receipts to obtain reimbursement. For appropriate events, the Department Director may further authorize travel at a reimbursement amount that is less than either full per diem or actual expenses. Travel of this type cannot be mandatory and is not to be authorized without the traveler's concurrence— Tke p a:^ ^ " ^t °,:n h aEljustea annually by the Censurner Priee —inde* —rte —this annual adjustment will be made in ineremen t,; roun ded to the nearest $5.00 bat shall not exceed the federal oe nt's standard aliewanee for meals and incidental expenses set fer the Los Angeles and _range- —11, area, G. Any reimbursement/ cost offset from outside sources, such as P.O.S.T. reimbursements or airline discounts, are payable to the City. 2 �q F -8 H. For local /short distance travel, City vehicles shall be used whenever practical. When personal vehicles are authorized and used, reimbursement will be at a flat rate as prescribed by Internal Revenue Service regulations, I. If personal vehicles are used for trips to more distant locations, the City will reimburse the traveler at the mileage rate or the standard discount /coach airfare rate, whichever is less. One day of travel time will be allowed each way, regardless of the mode of transportation. Travelers who request and are authorized to travel relatively long distances by personal vehicle rather than commercial air transportation must take leave to accommodate the additional travel time required. Regardless of the actual hours of travel, overtime will not be paid for said travel. Travel days that fall on weekends will not constitute overtime. Department Directors may authorize leave time at the travel site if requested. J. Travel advances up to 100% of confirmed airfare, lodging, registration expense and per diem are authorized. All other advances will be at the rate of 50% of estimated expenses. Requests for advances beyond this amount must be approved by the Administrative Services Director, K. Airline travel shall be at standard coach or comparable class. Lodging accommodations shall be at standard room, single occupancy rate. The governing rule shall be availability, economy, convenience, and propriety. L Travel claims shall be submitted to the Administrative Services Director within ten working days of travel completion. PROCEDURE A. Each Department Director shall include all planned trips in the Department's annual budget requests. The a-Travel Authorization Form shall be used as a planning /cost estimation guide. For unbudgeted, unplanned travel, the same form shall be prepared at the time travel is requested. B. All requests for travel advances shall include the original Travel Authorization Form signed by the Department Head. C. The Travel Expense Claim Form shall be used to file the final travel claim with the Administrative Services Director. A copy of the Travel Authorization Form must be attached. 3 N D. The Administrative Services Department shall make a record of all travel payments on the original Travel Authorization form, which will be returned to the traveler, with a copy retained by the City. CONTINUITY OF CITY GOVERNMENT POLICY With the advent of different modes of rapid transportation, there is the possibility of accidents injuring or killing several people simultaneously. Since Council Members are required to attend conferences, conventions and meetings outside City Hall, it is desirous to require that whenever possible, no more than three members of the City Council use the same transportation at the same time. When it comes to the Council's attention that a conference, convention, or meeting in which transportation is required, Council Members shall make an effort to arrange their itinerary so that no more than three members of the City Council use the same transportation. The City Clerk shall be utilized to provide alternate travel arrangements where necessary in order to comply with this policy. This policy will help insure that there will be a continuity of City government and that there is always a majority of Council members capable of fulfilling the responsibilities placed upon them by the City. In addition, the City Manager, Department Heads and other key personnel should use the same guidelines in traveling separately on official business whenever practicable. Adopted - June 8,1992 Amended - January 24,1994 Amended - February 26,1996 Amended - April 23, 2002 Amended - October 10, 2006 Formerly F -25 F 84 F -12 COMPLIMENTARY PARKING PERMIT POLICY PURPOSE To establish the policy for the issuance of complimentary parking permits. POLICY It shall be the policy of the City that a complimentary Annual Parking Permit may be issued to any person using a personal vehicle for City business, including City employees, at the direction of the Department Head. In addition, a Master Parking Permit may be issued to any Council Member, Commissioner or Board Member, the City Manager, Department Director, or other department personnel as approved by the City Manager. The City Manager has the authority to issue either the Annual or Master Parking Permit to any other individual as deemed appropriate. In all cases, each request must be submitted in writing to the Administrative Services Department and include a justification for the permit. Adopted - January 24, 1994 Corrected - February 26, 1996 1 THIS PAGE LEFT BLANK INTENTIONALLY ACKERMAN TRUST PURPOSE F -16 To establish City policy for the distribution of the proceeds of the income from the Ackerman Property, POLICY Per the terms of the Carl Ackerman Family Trust, the net sales proceeds of certain property in McFadden Square were divided between the University of California, Irvine, and the City of Newport Beach. The proceeds were distributed as follows: Sixty (60) percent of the proceeds were distributed to the University of California, Irvine, to be used for scholarship funding for needy qualified students. Forty (40) percent of the proceeds were to be distributed to the City of Newport Beach to be used in the following manner: Seventy -five (75) percent of the City's share to create a permanent endowment to provide a perpetual annuity that can be used to acquire high -tech library equipment. Twenty-five (25) percent of the City's share to create a permanent endowment to provide a perpetual annuity to fund scholarships for needy qualified students. This scholarship fund shall be open to any child who resides in Newport Beach, and to the children of City employees. The following procedures are established to meet the terms of the Ackerman Trust. The City shall deposit its share of the proceeds from the sale of Ackerman property into a Permanent Fund. Within that fund, the City shall create separate permanent endowment reserves to account for the principal share of both the high -tech library equipment ($579,586) reserve and the scholarship reserve ($193,195). The City may not spend any _portion of the permanent endowment. The City shall also create similar reserves to track the restricted and unrestricted expendable portions of each endowment. To sustain_preserve the economic vitality of the designated-Ackerman annuities, the City shall en 4bute— further restrict a portion of this fund's interest earnings to the per nt endewmefft"Inflation Rreserve" that will 1 �q F -16 represent a buffer against inflation. The remaining balance, if any, shall represent the spendable Rortion of each endowment. The a a ntfi cation to the pafAaRe «.7.. «ate ..L...il 1,e ametint equal a.. L'. ..F avera Angeles, Riverside, and Orange !'euRt , index (C-PI) fe.- Po...... ber i+.b�multiplied times the eur-r-ent perffianent endewment balanee, However, the City shal net be ell-i-Aed to make eentfibut4ens to permanent endewments in excess ef tbe afwFu .�, .u.�.a , ccarroc. For each of the endowments interest shall be allocated between the Spendable and Inflation reserves in accordance with the tables below based on the reserve totals of the preceding fir. In the case of the high tech library endowment, the Library Services Director will make a recommendation to the City Manager to request expenditure appropriations from the Spendable Reserve balance during the budget process or at any time during the year when an appropriate high tech equipment need is identified and no other funding sources are available. The appropriation request shall be subject to the normal Council approval process as provided by Council Policy F -3. In the case of the scholarship endowment the Administrative Services Director will recommend to the City Manager the amount to be appropriated for the coming budget year in accordance with the tables below. Unless otherwise recommended by City Manager or City Council, budgetal2propriations will be set to equal the interest credit to the Spendable Reserve that occurred during the preceding fiscal year unless the interest credit falls short of the minimum threshold or exceeds the maximum appropriation threshold in which case the appropriation shall equal the applicable appropriation threshold. While the al2propriation represents the authorized amount, there shall be no requirement for the program administrators to spend the authorized funds in any year. The program administrator for the High Tech Library Equipment endowment shall be the Library Services Director while the program administrator for the Scholarship Endowment shall be the Human Resources Director. It shall be at the discretion of the program administrators to determine the most appropriate means to fulfill the intent of the endowment consistent with Council Policies or other City practices. W QO F -16 Table 1. Interest Allocation Schedule for Scholarship Reserves Table Notes: The tables were constructed assuming economic conditions where the Citv might expect to earn 5% and the consumer price index (CPI) expected to increase 2.5%. Under this assumption, 50% (2.5 %/5 %) of annual interest earnings are expected to be eroded inflation. The minimum threshold was established to provide continuity of the Scholarship program in years where the economic assumptions do not hold true and inflation or low interest earnings might otherwise completely preclude scholarship awards in any one year. However, in no case shall it be allowable to appropriate or 3 9 Interest Allocation Appropriation Threshold Total Balance of Scholarship Spendable Inflation Annual Annual Reserves as of June 30 Reserve Reserve Minimum Maximum 200,000 to 300,000 30% 70% $0 $5,000 300,000 to 400,000 40% 60% $2,500 $7,500 400,000 to 500,000 50% 50% $5,000 $10,000 500,000 to 600,000 50% 50% $6,250 $12,500 600,000 to 700,000 50% 50% $7,500 $15,000 700,000 to 800,000 50% 50% $8,750 $17,500 800,000 to 900,000 50% 50% $10,000 $20,000 900,000 to 1,000,000 50% 50% $11,250 $22,500 1,000,000 to 1,100,000 50% 50% $12,500 $25,000 Table 2. Interest Allocation Schedule for High Tech Library Reserves Interest Allocation Appropriation Threshold Total Balance of High Tech Spendable Inflation Annua Annual Library Reserves as of June 30 Reserve Reserve Minimum Maximum 600,000 to 700,000 15% 85% $0 700,000 to 800,000 25% 75% $0 For all 800,000 to 900,000 35% 65% $0 Reserve 900,000 to 1,000,000 45% 55% $0 Levels, the 1,000,000 to 1,100,000 50% 50% $0 Annual 1,100,000 to 1,200,000 50% 50% $0 Maximum is the balance of 1,200,000 to 1,300,000 50% 50% $0 the Spendable 1,300,000 to 1,400,000 50% 50% $0 Reserves 1,400,000 to 1,500,000 50% 50% $0 Table Notes: The tables were constructed assuming economic conditions where the Citv might expect to earn 5% and the consumer price index (CPI) expected to increase 2.5%. Under this assumption, 50% (2.5 %/5 %) of annual interest earnings are expected to be eroded inflation. The minimum threshold was established to provide continuity of the Scholarship program in years where the economic assumptions do not hold true and inflation or low interest earnings might otherwise completely preclude scholarship awards in any one year. However, in no case shall it be allowable to appropriate or 3 9 F -16 threshold minimum was utilized. Adopted - January 24,1994 Amended - May 8, 2001 Amended - April 13, 2004 in F -26 FACILITIES REPLACEMENT PROGRAM PURPOSE To establish the policy for the administration of the City's Facilities Replacement Program. DISCUSSION In addition to the annual Capital Improvement Projects (CIP) program, the City has established a long term plan for replacement of aging General Fund supported facilities. The primary focus of the program is the replacement or major renovation of existing physical infrastructure. The addition of new facilities is also a goal of the program. . The emphasis is on structures and adjacent grounds, rather than transportation, environmental, or other projects funded either in whole or in part by the General Fund. OBJECTIVES A. To insure that a long -term program addressing large, non - recurring projects for replacement of facilities is addressed as part of the budget process each year. B. To insure that development fees and other non - recurring revenues are dedicated to the replacement of infrastructure facilities, rather than ongoing operating expenses. C. To provide a consistent, level funding plan that will minimize the `peaks and valleys' in General Fund support levels for elements of the program. D. To insure that projects are properly prioritized and scheduled, taking into considering the relative age, condition, and functional viability of current facilities; pairing of projects where prudent; and cost implications of immediate projects for the overall long -term program. E. Budgeting the cost of facilities while those facilities are in use is consistent with good government management practices. However, creating a legacy of excessive fixed costs for debt service is not. Therefore one of the objectives of this program is to insure that future generations will not be required to carry a disproportionate fiscal burden for previously completed projects. SOURCES AND USES OF FUNDS Funding for the program comes from development fees, contributions from individuals and organizations within the community, annual budget allocations from the General Fund, net proceeds of Certificates of Participation or other financing instruments, and investment earnings on temporarily idle funds. 1 G3 F -26 Program funds are used for actual site acquisition, design, construction, and directly related costs; as well as debt service expenses. POLICY AND PROCEDURE A. Each year, as part of the budget process, staff shall prepare an update of the Facilities Replacement Program for review, modification, and approval by the City Council. B. Unless otherwise specified in individual development agreements, other governing documents, or as otherwise specifically directed by the City Council, all development fees received by the City will be dedicated to the Facilities Replacement Program. C. Prudent assumptions regarding revenue and expenditure growth, inflation, and all relevant factors will be included in each year's update of the Facilities Replacement Program. D. General Fund contributions to the Program should ideally be in the range of 3.0% to 4.5% of the General Fund Operating Budget each year, but in no case shall said contributions exceed 5.0% of the total General Fund Operating Budget. This provision does not preclude periodic year- end -close contributions of unexpended appropriations originally budgeted for other purposes; or contributions of unexpected one -time revenues not specified for another purpose. Similarly, it is not intended to constrain additional contributions required to keep the program solvent in exceptional cases, such as an unexpected shortfall of General Fund revenue or increase in cost of the program. If it is necessary for General Fund contributions to exceed 5.0% of the total General Fund Operating Budget to maintain the Facilities Replacement Program, the Program shall be modified to maintain contributions under the 5.0% threshold. E. The financing duration for any borrowed funds shall not exceed 30 years or the projected life of the new facility, whichever is less. F. The Facilities Replacement Program may be amended by City Council action in the event of a natural disaster or financial crisis. Adopted — 2009 7 Qq K -1 GENERALPLAN MANNER OF ADOPTION AND AMENDMENT The General Plan or any part or element thereof, and any amendment to such plan or any part or element thereof, shall be adopted in the following manner: A. Public Hearing - Planning Commission. The Planning Commission shall hold at Ieast one public hearing before approving a General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, and shall give aet4 e of hearing by at thaft .. .. the Zoning Code for a code amendment. B. Approval by Planning Commission - Resolution. The approval by the Planning Commission of the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, shall be by the adoption of a resolution, endorsed by the chairman and Secretary of the Commission and transmitted to the City Council. C. Public Hearing - City Council. Before adopting the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, the City Council shall hold at least one public hearing. Notice of the time and place e f the hearing ..11 -11 C... at i4.,. a:..n,. n...7 ... at... r mafmer t ,.c e i, F 1 i the nl r r" . Advanced notice of the hearing and the procedures for the conduct of the 1 qj'5 K -1 hearing shall be the same as those required by the Zoning Code for a code amendment. D. Referral of Proposed Changes Back to Planning Commission. In adopting a General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, which has been approved by the Planning Commission, the City Council shall consider the recommendation of the Planning Commission. If the City Council intends to make major changes and take an action not considered by the Planning Commission, the changes shall be referred back to the Planning Commission for its recommendation. Planning Commission consideration of an alternative shall be construed liberally so as to allow the City Council to act on any one of a range of alternatives generally considered by the Planning Commission. The Planning Commission shall report back to the City Council with their recommendation on the proposed changes within 45 days. E. Adoption by City Council - Resolution. The adoption of the General Plan or any part or element thereof, or any amendment to such plan or any part or element thereof, shall be by resolution. AMENDMENT PROCEDURES (GENERAL PLAN) City Amendments: A. City- sponsored amendments to the General Plan shall be initiated by the City Council. B. In initiating action to amend the General Plan, the City Council shall direct the Planning Commission to set public hearings for such amendments as it deems appropriate. C. Prior to making its recommendation on the proposed General Plan amendments, the Planning Commission may do such research as it deems necessary to establish whether the proposed amendment warrants approval. Property Owner Amendments: A. Property owners may apply for an amendment to the General Plan, limited to changes to the land use designation and /or development limit for their property. Such request shall be made by the filing of an application on a form prescribed 2 O K -1 by the Planning Director along with the fee established by the City Council. If property that is the subject of an application is in more than one ownership, all the owners shall join in filing the application. The request should clearly set forth the reason for which the request is made, and should contain information substantiating the need, and shall inElude ^ " ^' "' ^~ EXCEPTION Pursuant to Section 8 of City Council Resolution 2006 -76, errors of fact, language consistency between elements and policies, calculations and /or scribe's errors in the General Plan text, exhibits, figures and _plan map may be corrected without further amendment. All revisions made pursuant to Section 8 shall be reported to Planning Commission for affirmation. Adopted - April 22,1974 Amended - June 23,1980 Amended - November 23,1981 Amended - November 22,1982 Amended - November 27,1989 Amended - January 24, 1994 Amended - February 26,1996 Amended - May 8, 2001 Amended - April 13, 2004 Formerly Q -1 3 q-7 Authorized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange County, California. Number A6214, September 29, 1961, and A -24831 June 11, 1963. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a parry to or interested in the below entitled matter. I am a principal clerk of the NEWPORT BEACH - COSTA MESA DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published on the following dates: July 25, 2009 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on July 29, 2009 at Costa Mesa, California. Sig re RECEIVED 2M9 JUL 31 AN 9, 57 OFFICE OF THE CRY CLERK CITY OF t~ EWPORT BECH Nomo P"HUNA' NOTICE IS HEREBY OIVEN that on Tuesday, Auguat 11, 2009, at 7;00 P.m., a public hearing will be conduct- ad 11 the City COUOcl Chambers at 300 New* port Boulevard, Newport Beach. The City Council of the City of Newport Beach will consider an amendment to City Council Policy A-18. Measure 8 Guidelines. The proposed amendment updates the policy for con Pistsncy with the GeRaNd Plan, deletes outdated lam use gof aaTrip Rate Table as revised regularly by the Institute of Traffic Engineers. All interested parties may appear and present testimony in regard to this amendment. The agenda, staff report, and documents may be re viewed at the City Clerk's Office, City of Newport Beach, 3300 Newport Boulevard. Newport Beach, Califor- nia, 926113. For questions regard- ing details of the at