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HomeMy WebLinkAbout01 - 05-13-2003 & 05-21-2003City Council Meeting May 27, 2003 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes DRAFT Study Session May 13, 2003 - 4:00 p.m. INDEX ROLL CALL Present: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Prior to the evening meeting, Council Member Heffernan requested a clarification on who has the option to extend the term of the service agreements, as referenced in Section 5.15.080 of Item No. 3, Tow Truck Ordinance Revisions. He additionally asked to be provided with the amount of the parking meter revenues for West Newport and the Balboa Peninsula for the prior fiscal year, as discussed in Item No. 4, Amendment to Municipal Code Section 12.44.027, Neighborhood Enhancement Reserve. Regarding Item No. 13, Gas Sale Agreement with Hoag Memorial Hospital Presbyterian, Council Member Heffernan asked for an explanation as to why the gas rate has not been adjusted since 1996. Lastly, Council Member Heffernan asked what the average price was for the oil that was sold, as referenced in Item No. 15, Oil Field Operation — Water Pump Purchase. 2. 2003 -04 BUDGET REVIEW. Using a PowerPoint presentation, City Manager Bludau stated that the City's budget philosophy is to base the budget on conservative revenue projections, to fund the required reserves first, to give essential City services a priority and to emphasize efficiency. He stated that the primary budget objective is to ensure continuity of essential municipal services in a volatile financial environment. The requirements of the budget-are to have a fiscal year that runs from July Ist to June 30th, to delegate budget preparation to the City Manager, to submit the budget to the City Council at least 35 days prior to the beginning of each fiscal year and hold a legally noticed public hearing. City Manager Bludau stated that the City Charter provisions also allow for the City Council to modify the budget before it is adopted, amend the budget after adoption and reduce appropriations, if necessary. He stated that the City Council is required to adopt the budget prior to June 30th and that there must also be an annual independent audit of the budget. City Manager Bludau stated that the budget preparation process takes approximately nine months, and begins in November of the prior fiscal year. The process includes projecting current year financial forecasts, preparing preliminary revenue estimates, making assumptions on how much money will be needed to fully fund the reserves and establishing budget ceilings. In February and March, budgets are submitted by the departments to the City Volume 56 - Page 114 2003 -04 Budget Review (40) City of Newport Beach Study Session Minutes May 13, 2003 I Manager for review, and the preliminary budget is printed and distributed in April. The Finance Committee and the City Council review the budget in May, and in June, the public hearings are held and the City Council adopts the budget. City Manager Bludau displayed a general fund revenue comparison worksheet that included the original budget and revised estimates for the current fiscal year, and projections for the 2003 -04 fiscal year. He noted that property taxes are approximately 4% greater in the current fiscal year than originally estimated and are the largest source of revenue. Mayor Pro Tern Ridgeway asked for an explanation of "taxes other than property ". Administrative Services Director Danner stated that the category includes approximately $19 million in sales tax and between $8 and $9 million in Transient Occupancy Tax (TOT). City Manager Bludau pointed out that the intergovernmental category is expected to be approximately 48% greater than originally estimated, as a result of the Vehicle License Fee (VLF) assumption that was made. He stated that the total general fund budget was originally predicated on revenues of approximately $95.4 million and the revised estimates show that it will be closer to $100 million, or 5% greater than estimated. City Manager Bludau stated that the 2003 -04 budget is a balanced budget with conservative, yet realistic revenue forecasts. He added that all known and mandated cost increases are included, and certain funds have been set aside for future uses. He listed the areas where the revenue projections have been reduced, which included the VLF backfill, California Library Services Act, the Public Library Foundation Program, police grants and Senate Bill 90 (SB 90) mandated cost reimbursements that aren't expected from the State. City Manager Bludau stated that new expenditure items in the budget include National Pollutant Discharge Elimination System ( NPDES), compensation and benefit increases and fuel modification zone costs for the Newport Coast area. City Manager Bludau displayed a chart listing the proposed water quality expenses. He stated that this is the biggest program change for the 2003 -04 budget, and the expenses total approximately $5.3 million and include salaries, payments to the County to run certain programs, an enhanced alley street sweeping program, an environmental services officer and sewer spill avoidance. City Manager Bludau stated that grant monies will help pay some of the costs. Council Member Heffernan asked how much more is being spent in the upcoming fiscal year than was spent during the current fiscal year. Administrative Services Director Danner noted that the new expenses are highlighted on the chart, and confirmed that they total approximately $1 million. City Manager Bludau displayed a proposed organizational chart for the 2003 -04 fiscal year, which showed the change in how water quality enforcement would be handled. He explained that it was decided to combine the City's current code enforcement program with the enforcement of the new NPDES requirements, and place it in the City Manager's department. He stated that this will provide it with a high profile, although the program will begin as an educational effort prior to enforcement. Council Member Heffernan Volume 56 - Page 115 City of Newport Beach Study Session Minutes May 13, 2003 INDEX asked if the costs will be recuperated through fines. City Manager Bludau stated that it is not anticipated to do so and is not the intention. City Manager Bludau displayed a pie chart of all City revenues, which totals approximately $156 million. He noted that nearly 50% of the total comes from property taxes, and sales and other taxes. He stated that secured property tax, sales tax and transient occupancy tax total approximately $63.5 million, and make up 64% of the general fund revenues. Council Member Heffernan confirmed with Administrative Services Director Danner that "property tax" includes items such as homeowners exemption, unsecured property taxes, penalties and delinquencies that "secured property tax" does not. City Manager Bludau displayed a pie chart of all City expenditures, and noted that public safety comprises approximately 43% of the total. He listed the other items and noted that public works comprises approximately 17% of the total and includes the Capital Improvement Program (CIP). He stated that the proposed total expenditures of all funds for the 2003 -04 fiscal year is approximately $164.5 million, with the operating budget totaling $129 million. He stated that the CIP is proposed at $30 million with $11.5 million in rebudgets. City Manager Bludau stated that the general fund operating budget is $100.5 million, with public safety and public works accounting for approximately 75% of the total. City Manager Bludau displayed a graph showing the historical trend in selected functional operating expenditures since the 1992 -93 fiscal year- The categories include public safety, public works, community services, general government and community development. He noted that the fluctuation in general government is due to the amount of money spent on the El Toro Airport effort. City Manager Bludau displayed a list of the changes to positions for the 2003 -04 fiscal year. He noted the two positions from the planning department that would be transferred to the city manager's department for water quality and code enforcement. He stated that the three new positions being proposed for the city manager's department would also specialize in water quality work. He pointed out that part of the justification for the positions is the elimination of two positions in the General Services Department that were handling drainage basin and ditch cleaning. City Manager Bludau noted the new position in the waste water division of the Utilities Department that would be necessary with the addition of the new sewer video inspection equipment being proposed at the evening meeting. He also noted the new position in the Fire Department for a department assistant, which would handle some of the clerical work currently being done by uniformed personnel. Council Member Nichols asked how much is being saved with the elimination of the two positions in the General Services Department. City Manager Bludau stated that the storm drain cleaning will be contracted out for a total of 160,000. He noted that approximately $90,000 to $100,000 was spent during the current fiscal year. Volume 56 - Page 116 City of Newport Beach Study Session Minutes May 13, 2003 I City Manager Bludau displayed a graph showing the number of full-time positions in the City for each fiscal year since 1992 -93. He stated that the proposal is for 778 full -time positions, with 385 of those being public safety positions. He also displayed a graph showing the City's general fund reserves each year since 1992. He noted that the significant dip in the mid 1990's was due to the Education Revenue Augmentation Fund (ERAF) shift, and that the City is currently in full compliance with Council Policy F -2, Reserves/Designations of Fund Balance. City Manager Bludau stated that reserves are important due to the uncertainty of economic conditions and revenues, clean water legislation, lower investment earnings, and the annexations, which increase the asset base on which the reserves must be calculated. He emphasized that the State budget crisis is also a primary reason. Mayor Bromberg confirmed with City Manager Bludau that any significant costs associated with the annexation of Santa Ana Heights would come from the redevelopment fund. Council Member Heffernan asked if money had been reserved for the payments that need to be made in regard to the Newport Coast annexation. Administrative Services Director Danner stated that the fund balance estimates for the current year include $300,000 for retroactive payments to the homeowners associations. City Manager Bludau displayed a graph that showed the losses since the 1992- 93 fiscal year incurred by the City due to the ERAF shift. He noted that they are ongoing and total approximately $48 million. Referring to the list of special reserve funds and the estimated 2003 -04 fiscal year -end balance for each, Administrative Services Director Danner pointed out that the contingency reserve and the stabilization reserve are fully funded, as required by Council Policy F -2. He also noted that the reserve for capital improvements is being increased from $2 million to $3 million due to the continued receipt of the VLF, and the reserve for the Public Employees Retirement System (PERS) rate changes is being set aside for expected increases in future years. City Manager Bludau added that the money being set aside in the capital improvement reserve could be used for the initial efforts that might be needed for consideration of the construction of a new City Hall. He also noted that the PERS rates have fluctuated over the past ten years due to market returns, contract changes and the City's funding levels. He stated that the establishment of a reserve is being proposed to help smooth the effect of the rate changes. Administrative Services Director Danner stated that the City's PERS contribution for 2001 -02 fiscal year was $5 million. It is $6.6 million for the current fiscal year and is expected to be $9.3 million for the 2003 -04 fiscal year. Council Member Nichols asked what has caused the change. Administrative Services Director Danner stated that the primary cause has been due to the investment loss that PERS has experienced over the past three years. City Manager Bludau stated that one of the new developments and pending issues with the 2003 -04 fiscal year budget is the clean water legislation that will require new expenditures, with no new revenue expected. He stated that cost increases have been included in the budget for the negotiated salary and benefit increases, but there is an uncertainty about key revenues and the State's action. Volume 56 - Page 117 City of Newport Beach Study Session Minutes May 13, 2003 1p117D/:1 City Manager Bludau stated that the management team met on May 9, 2003, and discussed their top ten priorities for the 2003 -04 fiscal year. He stated that the process ensures that staff has the same priorities as the City Council, and assigns responsibility for each priority to the appropriate staff members. City Manager Bludau stated that the first priority discussed involved the local coastal plan. He stated that the goal for the 2003 -04 fiscal year is to have the land use plan certified and the implementation plan submitted to the Coastal Commission for initial review. The second priority is to implement a program which continues the quality of the City's code enforcement while developing a water quality enforcement effort. He stated that the intent is to create a model program. Council Member Nichols stated that the public will need to be made aware of the new code. City Manager Bludau stated that an educational component will be a part of the program. City Manager Bludau stated that the thud priority involves the general plan update and the goal is to complete the baseline data and analysis by December, 2003, and complete the evaluation of the land use plan by the end of the fiscal year. The fourth priority is to temporarily reconfigure the park playfield and complete the design development for the Mariner's library and park. The fifth priority is to complete the design of the new Santa Ana Heights fire station. The sixth priority is to complete the West Santa Ana Heights, country club and Mesa Drive annexation by July 1, 2004. Mayor Bromberg stated that the policy direction from the City Council was to report back to the City Council with additional information on the annexation of West Santa Ana Heights, but not to complete the annexation. City Manager Bludau stated that the first objective is to review the possibility of the annexation and report back to the City Council. He noted, however, that if staff is directed to pursue it further, it will be a major effort. City Manager Bludau stated that the seventh priority does not contain any goals or assignment of staff, since it will be up to the City Council to provide further direction on the replacement of City Hall and a solution for long -term space needs. The eighth priority involves the Cable TV franchise agreements, with the goal to negotiate new agreements with Cox and Adelphia by March 1, 2004. The ninth priority is to develop a standardized employee evaluation process, assessing the need for a standardized form, which incorporates the organizational values and holds employees accountable, and to train the organization on the new process. The tenth priority is to continue an emphasis on disaster preparedness training. In conclusion, City Manager Bludau stated that the City is facing tougher financial times, but has incorporated the potential losses from the State's actions into the budget. He stated that the good news is that the City is in a better financial position than it was during the last economic downturn, is in better shape than most cities and essential services have not been threatened. He emphasized that there is not much trust in what the State will decide to do. Referring to the committee handling the Cable TV franchise agreements, Volume 56 - Page 118 City of Newport Beach Study Session Minutes May 13, 2003 INDEX Council Member Heffernan stated that the City should also make an effort to improve the cell phone service in the City. City Manager Bludau stated that the overview just presented was an attempt to show that the City's budget is balanced, and where the changes and challenges are. He stated that the challenges have been met, the City has been prudent and improvements in service efforts have even been made. Public Works Director Badum noted the list of projects that were completed in the 2002 -03 fiscal year, as provided to the City Council earlier. Using a PowerPoint presentation, he stated that the 2003 -04 fiscal year Capital Improvement Program (CIP) will consist of over 100 projects for a total cost of approximately $30 million. He stated that input was received from the City departments, citizen groups and council members, and that multiple funding sources are used to try to leverage available funds in the best way possible. Public Works Director Badum stated that the CIP is a reflection of the community's values, and that this year's CIP will maintain quality through difficult times. He displayed a pie chart showing where the money is being spent, by fund. The general fund will supply approximately $1.5 million of the money, and is usually closer to $4 to $5 million. Public Works Director Badum noted that over 50 projects were requested, for a total cost of over $8 million. He stated that the selection and budgeting of the projects was done very conservatively. Public Works Director Badum stated that the oil spill remediation fund was created from the settlement proceeds received from the American Trader oil spill. He noted that over $4 million has been spent and approximately $1.3 million remains. The tide and submerged land fund accounts for approximately $1.3 million of the CIP, and most of the money is spent on the coastal zone area. Public Works Director Badum stated that the building excise tax fund has been larger in previous years, and is money received from building and remodeling projects in the City. He stated that the expenditures are usually reserved for fire safety, libraries, parks, beaches and recreational facilities. He noted that the 2003 -04 fiscal year includes $150,000 in projects. The water enterprise fund will increase in the 2003 -04 fiscal year due to the covering of the Big Canyon Reservoir. Projects will total $7.1 million, with approximately $5 million of that being spent on the reservoir covering project and disinfection modification. The wastewater enterprise fund is used for sewer main and pump station improvements, and will total approximately $1.6 million in the 2003 -04 fiscal year. Public Works Director Badum stated that cooperative projects will total approximately $7.1 million and include the Mariners Branch Library. Public Works Director Badum displayed several lists, showing the individual projects that are being proposed for the 2003 -04 fiscal year, by fund. Council Member Webb asked if the Mariners Park recreation facility improvements project would include the replacement of the tennis courts. Public Works Director Badum answered in the affirmative and stated that it is a supplement to the library project and would utilize Proposition 40 funds, so is considered a cooperative project. He stated that the project would relocate the Volume 56 - Page 119 City of Newport Beach Study Session Minutes May 13, 2003 INDEX tennis courts, rebuild the ball fields and add a new restroom. Council Member Webb asked for an explanation of the Global Positioning System (GPS) equipment that is included on several of the lists. Public Works Director Badum stated that the GPS equipment will allow the public works department to defer the hiring of an additional employee in the survey division and will also enhance the department's Geographic Information System (GIS) and public information program. Council Member Nichols asked for an explanation of the Coast Highway channelization project in Corona del Mar. Public Works Director Badum stated that several locations in Corona del Mar have striped medians. He stated that it has been decided that these areas can be made safer by constructing raised medians. Council Member Nichols stated that many people use these median areas to make turns. Public Works Director Badum that this will be taken into consideration during the design phase and when selecting which areas should have raised medians. Per Council Member Nichols's question, Public Works Director Badum stated that all of the projects listed are discussed in more detail in the preliminary CIP budget package. Council Member Webb confirmed with Public Works Director Badum that the southbound MacArthur Boulevard at Coast Highway project will create two left turn lanes further back from the intersection. Public Works Director Badum added that it will be a cost efficient way to improve the intersection since it is mostly striping redesign. Council Member Webb asked when the West Newport Assessment District No. 69 project is expected to begin. Public Works Director Badum stated that the City is working with Southern California Edison on the possibilities of doing some roadway improvements in conjunction with their work. He stated that construction is expected to begin in late Fall. Public Works Director Badum concluded his comments by stating that the projects are diverse and significant, are City -wide and are conservative. He stated that many projects are being deferred to the future and emphasized that City facilities are really taking their toll in regard to deferred maintenance. Council Member Heffernan asked what specific projects are being deferred and how they would be affected by the possible replacement of City Hall. Public Works Director Badum stated that there is quite a bit of work to be done, but the replacement of City Hall is one of the projects that the public would get the most benefit from. Council Member Heffernan suggested that a list of those projects being deferred be provided to the City Council, with a priority ranking on what would be done if the money were available. He stated that this would help to put things into perspective. Council Member Webb stated that the neighborhood traffic management improvements project includes a carryover of $100,000. He asked if this was for the Newport Heights study. Public Works Director Badum responded in the affirmative and stated that it is shown as a rebudget so that the money would Volume 56 - Page 120 City of Newport Beach Study Session Minutes May 13, 2003 INDEX not be lost. Council Member Webb stated that the project needs to get underway. Council Member Webb requested that an estimate be provided for fixing a gap on the sidewalk along Dover Drive between Cliff Drive and Castaways Park. He suggested that the design and environmental work be done in the 2003 -04 fiscal year. Additionally, he requested that an estimate for the installation of toilet seats in the restrooms at Castaways Park be provided. Council Member Webb confirmed that the fire station #7 project was for the new fire station and asked how only $10,000 could be budgeted. Public Works Director Badum stated that it is for predesign, but the majority of the money is expected to come from the redevelopment agency. Council Member Webb asked if $10,000 was enough to do the steps necessary prior to implementation. City Manager Bludau noted that the County has pledged $1.6 million towards the project. Council Member Nichols requested that money be budgeted to improve the situation at Morning Canyon. He stated that responsibilities need to be established and something needs to be done. Public Works Director Badum stated that the City is working on some grant funding for both Morning Canyon and Buck Gully, and has been working with some of the property owners in the area, as well as several agencies. Bernie Svalstad complimented the City for putting together an excellent preliminary budget and budgeting approximately $300,000 for traffic management. He requested that the traffic management system be included in staffs priorities and the CIP. City Manager Bludau stated that it is a part of the current fiscal year's top twelve priorities, and is expected to be brought to conclusion during the 2003 -04 fiscal year. PUBLIC COMMENTS Dolores Otting stated that the fiscal impact analysis and model was introduced at the General Plan Update Committee (GPUC) meeting on May 12, 2003. She specifically noted Tables 17 and 18, which included the revenue received by the City from Newport Coast in the year 2000 and what is expected to be received at full build out. After looking into the matter further, she expressed her concern that the numbers may not be accurate and that possibly it meant that other numbers in the analysis were also not accurate. She additionally asked where in the budget the Newport Coast expenses are covered. Mayor Pro Tem Ridgeway requested that information be provided to him on whether the fiscal impact analysis includes real property taxes. At the request of Mayor Bromberg, City Manager Bludau explained that the supplemental budget list will be provided to the City Council in June. He stated that the City Council will need to determine which items should be funded and at what amount. Volume 56 - Page 121 City of Newport Beach Study Session Minutes May 13, 2003 ADJOURNMENT - at 5:55 p.m. to Closed Session. The agenda for the Study Session was posted on May 7, 2003, at 2:15 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 56 - Page 122 INDEX CITY OF NEWPORT REACH City Council Minutes Regular Meeting May 13, 2003 - 7:00 p.m. - 4:00 p.m. INDEX CLOSED SESSION - 5:55 p.m. A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Absent: None C. CLOSED SESSION REPORT - None. D. PLEDGE OF ALLEGIANCE - Council Member Heffernan. E. INVOCATION - Doug Owen, Bishop, Corona del Mar Ward, Church of Jesus Christ of Latter -day Saints F. PRESENTATIONS Proclamation for Pat Buderwitz Pt Annual Whale Watching Photo Contest Presentation - Balboa Village BID Presentation by Balboa Island Keystone Kops Announcement about the Leukemia and Lymphoma Society Regatta Race being held on Sunday, May 18 G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION ACTION OR REPORT (NON- DISCUSSION ITEM): • Mayor Pro Tem Ridgeway announced that the rehabilitation project on Balboa Boulevard has been completed ahead of schedule and under budget. He stated that staff and the contractor recovered a segment of railroad in front of Best Western Bay Shores Inn which was used by the red cars. He indicated that it will be preserved and put on display somewhere in Balboa. Volume 56 - Page 123 City of Newport Beach City Council Minutes May 13, 2003 Council Member Heffernan requested a future study session item relative to the improvement of cell phone service in the City. He stated that it would be beneficial to locate the weak areas, noting that cell companies already have scientific studies, and then offer sites in the City to improve the service. Mayor Bromberg noted that Council certified the proposed hotel at Marinapark for a vote. He stated that Council promised that it would look at the economics and commence negotiations /discussions with the developer prior to the election in the event the election was successful for the developer. He emphasized that it is not the City's intent to enter into a lease unless the election is successful for the developer. He requested that an item come back at the next meeting formalizing a committee consisting of Mayor Pro Tem Ridgeway and Council Member Heffernan to represent the City in the proposed lease discussions. He pointed out that the purpose of the committee will be to report the economics to the public. Mayor Bromberg announced that it rained during the Relay for Life. He stated that 45 teams participated, they raised almost $70,000, 350 luminaries were purchased, the City had four teams, the Council Critters participated, the City Slickers raised over $10,000, the Ridgeway Family participated, and the Daily Pilot's team won the spirit award. Mayor Bromberg thanked the Newport Ocean Sailing Association (NOSA) for hosting and sponsoring the 56th Newport to Ensenada Race. Mayor Bromberg announced that fireworks will be held on July 4th at the Newport Dunes. CONSENT CALENDAR READING OF MINUTES/ORDINANCES AND RESOLUTIONS Removed at the request of member of the audience. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCES FOR INTRODUCTION 3. TOW TRUCK ORDINANCES. Introduce Ordinance No. 2003.8 and pass to second reading on May 27, 2003. 4. Removed at the request of Mayor Pro Tern Ridgeway. ORDINANCES FOR ADOPTION 5. CODE AMENDMENT NO. 2003 -001 — APPROVAL AUTHORITY FOR GRANNY UNITS (PA 2003 -054). Adopt Ordinance No. 2003.6 approving Code Amendment No. 2003.001. Volume 56 — Page 124 I1I17D/:/ Ord 2003 -8 Tow Truck (70) Ord 2003 -6 PA2003.054/ Granny Units (68) City of Newport Beach City Council Minutes May 13, 2003 6. CURCI PROPERTY, 129 AGATE AVENUE — GENERAL PLAN AMENDMENT NO. 2002 -003, LOCAL COASTAL PROGRAM AMENDMENT NO. 2003 -001, CODE AMENDMENT NO. 2002 -009, NEWPORT PARCEL NO. 2002 -031 (PA2002 -244). Adopt Ordinance No. 2003 -7. CONTRACTS AND AGREEMENTS OFFICIAL POLICE TOW TRUCK CONTRACTS. Authorize the Mayor to execute the agreements with G & W Towing and MetroPro- Harbor Towing to provide official police tow truck services. 8. NEWPORT CENTER DRIVE AND SAN NICOLAS DRIVE RESURFACING — AWARD OF CONTRACT (C- 3561). 1) Approve the plans and specifications; 2) award the contract (C -3561) to All American Asphalt for the total bid price of $576,576 and authorize the Mayor and the City Clerk to execute the contract; 3) establish an amount of $57,000 to cover the cost of unforeseen work; and 4) approve a budget amendment (BA -067) transferring $223,300 of Gas Tax Funds from Account No. 7181 - 05100593 to Account No. 7181- C5100700. 9. BAYSHORES WATER MAIN REPLACEMENT — AWARD OF CONTRACT (C -3512) AND APPROVAL OF AMENDMENT NO. 1 TO CIVILTEC ENGINEERING PROFESSIONAL SERVICES CONTRACT. 1) Approve the plans and specifications; 2) award the contract (C -3512) to Cody Engineering, Inc. for the total bid price of $591,230 and authorize the Mayor and the City Clerk to execute the contract; 3) establish an amount of $59,000 to cover the cost of unforeseen work; and 4) approve Amendment No. 1 to Professional Services Agreement with Civiltec Engineering Inc. increasing their compensation $12,535 for additional design services related to the subject project and authorize the Mayor and the City Clerk to execute the Amendment. 10. NEWPORT HEIGHTS PAVEMENT OVERLAY — COMPLETION AND ACCEPTANCE (C- 3473). Continued 11. Removed at the request of Council Member Nichols. 12. FUEL SYSTEM UPGRADES (C -3547) — APPROVAL OF EXTRA WORK. 1) Authorize the Public Works Director to approve Change Order No. 1 in the amount of $27,000, which provides for additional work and an approximate $1,300 for soils testing anticipated for environmental clearance of the fuel system upgrades at City Hall; and 2) approve a budget. amendment (BA -068) appropriating $17,000 from the unappropriated balance of the Equipment Replacement Fund to Account No. 7611- C6120683. 13. GAS SALE AGREEMENT WITH HOAG MEMORIAL HOSPITAL PRESBYTERIAN. Approve the Amendment to the Agreement for sale of gas to Hoag Memorial Hospital Presbyterian. 14. Removed at the removed of Council Member Nichols. Volume 56 — Page 125 INDEX Ord 2003 -7 GPA 2002 -003/ PA2002 -244 Curci Property (45) C- 3189/C -3203 Police Tow Truck Contracts (38) C -3561 BA -067 Newport Center Drive and San Nicolas Drive Resurfacing (38/40) C -3512 Bayshores Water Main Replacement (38) C -3473 (38) C -3547 BA -068 Fuel System Upgrades (38/40) C -2493 Gas Sale Agreement (38) City of Newport Beach City Council Minutes May 13, 2003 15. Removed at the request of Council Member Nichols. MISCELLANEOUS ACTION 16. ALARM MANAGEMENT SYSTEM UPGRADE (contd. from Study Session of 4/22/03). 1) Approve recommended upgrades to the Police Department Alarm Management System and award purchase to the vendors for the specified equipment, software, and services at the quoted costs (as outlined in staff report); 2) Approve a budget amendment (BA -066) transferring $130,717 from General Fund Unappropriated Reserves to the Police Department Budget as outlined in the staff report; and 3) authorize the Department to implement an Alarm Management System (AMS) Marketing Plan. Motion by Mayor Pro Tern Ridgeway to approve the Consent Calendar, except for those items removed (1, 4, 11, 14 and 15), and noting the continuance of Item 10. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None J. ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF APRIL 22, 2003. Jim Hildreth referenced page 104 and stated that he was not sure if the work done in the alleys on Little Balboa Island was done improperly; however, there are cracks and deformities in the work. Regarding public comments, he believed that the City Manager told him that there are no records at all other than what he has received already from the Revenue Department. Further, he indicated that the Revenue Department had records only until 1994. He believed that, if the Harbor Resources Division is not keeping records as required by the municipal code, their services are no longer needed. He added that he does not believe he said that the division should be making money, but that their location could be rented out to make money since he feels they are not serving any purpose and not maintaining records. Motion by Council Member Webb to waive reading of subject minutes, approve as written and order filed. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Volume 56 — Page 126 IIo17D/:1 BA -066 Alarm Management System Upgrade (40/70) City of Newport Beach City Council Minutes May 13, 2003 110113 D/:1 4. AMENDMENT TO MUNICIPAL CODE SECTION 12.44.027, Ord 2003 -9 NEIGHBORHOOD ENHANCEMENT RESERVE. Neighborhood Enhancement Mayor Pro Tem Ridgeway stated that he agrees with the goal of having a Reserve wider range; however, in light of the fact that there may be a (40) redistricting, he indicated that he does not understand why Newport Island and the area between it and 32nd Street are being transferred from the Balboa Peninsula to the West Newport area. He believed that Newport Island should be added to the peninsula. He requested that this item be continued until this is resolved. Council Member Webb indicated that this item is not designating where the peninsula and West Newport are other than the expenditure of parking meter revenues. He believed that 32nd Street and Newport Boulevard end up being a well defined boundary so that parking funds east of it will go to the peninsula and west of it will go to, West Newport. He stated that the way the ordinance was originally -written, the first enhancement zone covered everything and the second excluded that area. He noted that he wanted to establish a definite boundary to allow the zones to function with the revenues generated in each zone. Mayor Pro Tem Ridgeway believed that this splits the district and disagrees with doing this. He noted that each meter is inventoried and numbered, and it is not hard to calculate the income. Council Member Webb indicated that this does not look at Councilmanic districts, but at areas which are historically tied together with regard to funds being spent in one zone or the other. Motion by Mayor Pro Tem Rideeway to introduce Ordinance No. 2003 -9, as amended to have 361h Street remain in District 1 and be the boundary and keep Newport Island in West Newport, and pass to second reading on May 27, 2003. Assistant City Manager Wood recommended that Newport Shores be added and amend Section 1.B.1 to read 'Parking Meter Zones 8 and 9 ". Mayor Pro Tem Ridgewav amended his motion to include staffs recommendation. Council Member Adams requested and received confirmation from Assistant City,Manager Wood that staff does not have any concerns or issues with the changes being proposed. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 11. CORONA DEL MAR BUS SHELTER — EXTRA WORK APPROVAL. C -3606 Corona del Mar Council Member Nichols stated that the bus shelters are serviceable, but Bus Shelter Volume 56 — Page 127 City of Newport Beach City Council Minutes May 13, 2003 INDEX some of the owners did not like their placement and asked why they are (38) located mid - sidewalk. Motion by Mayor Pro Tern Ridgeway to authorize the Public Works Director to approve extra work in the amount of $6,028.16, which provided for the assembly and installation of six bus shelters along Coast Highway in Corona del Mar. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 14. PURCHASE OF CCTV VIDEO INSPECTION VAN. Council Member Nichols asked how the van will be used and why this is a good investment for the City. Assistant City Manager Kiff stated that the City examined a number of different costs associated with the City contracting out for the video taping of the sewer lines. He reported that the City spends about $125,000 a year to inspect a quarter of the City. However, he indicated that the wastewater team believes the City can do more at a cheaper cost by using its own van and personnel than the private sector can in four years. He added that the City has a $30,000 annual contract with a different company to look at "hot" spots. He stated that the City will be able to inspect these areas with its own van and crew. Mr. Kiff confirmed that inspections can also be conducted more often since they want to get through more of the City faster. Council Member Nichols believed that this would be an enhancement for the City. Mayor Pro Tern Ridgeway reported that, on Friday, the City is testifying before the Regional Water Quality Board about what it is doing to enforce the NPDES permit. He stated that this is an important item to testify about since the City has had sewer problems in the past. Jim Hildreth asked if the City is going to have a regiment on how it is going to inspect the sewer system and assumed that this will also help with ruptures in the sewer lines. City Manager Bludau clarified that ruptures of the sewer lines are almost non - existent now, but it is the water lines that the City has problems with since they are under pressure. Motion by Mayor Pro Tern Ridgeway to approve the staff recommendation and waive competitive bidding guideline thresholds and approve the single source purchase of a Pearpoint CCTV video inspection Hi -Cube van at a total cost of $127,021.20. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Volume 56 — Page 128 C -3611 CCTV Video Inspection Van (38) City of Newport Beach City Council Minutes May 13, 2003 Noes: None Abstain: None Absent: None 15. OIL FIELD OPERATION —WATER PUMP PURCHASE. Council Member Nichols stated that the City has several oil wells with pumps that prevent oil leaks to the surface. He indicated that this takes a lot of the pressure away and provides revenue to the City. He reported that one of things the City gets from the ground besides oil is water, the water is reprocessed, and it can be put back into the ground rather than sold to another facility. He stated that this will save money and improve the City's revenue stream. Further, this has the potential. of bringing more oil out of the ground. He believed that this is a positive investment and suggested that more money be spent on investigating how the City is doing this so it is optimized. Motion by Mayor Pro Tern Ridgeway to authorize the purchase of one water injection pump from National Oil Well of Long Beach in the amount of $100,552.50. Mayor Pro Tem Ridgeway clarified that this is for the water injection system whose purpose is to increase the production of the oil fields. He noted that the City made about $450,000 last year after expenses. The motion carried by the following roll call vote: . . Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None K. PUBLIC COMMENTS Jim Hildreth stated that the Balboa Island Bridge Beautification was done by the Pima Corporation and believed that the City should contact them since the fagade is coming off. He hoped that, when the City undergrounds the utilities on the big island, this does not happen there. He stated that Little Balboa Island was required to put in stainless steel grounding rods which do not meet the National Electrical Code. He indicated that he only knows of one person that was forced to do that. He stated that municipal code section 17.08.025 states that the City is supposed to keep and maintain all pier permit records. He stated that the Harbor Resources Director will be retiring and hoped that, as he is cleaning out his desk, he is able to find some documents that were supposed to be in his office. Regarding the Balboa Island Parade, he stated that he will probably not be dancing around during the parade this year but will be there in spirit. Paul Watkins began discussing Item No. 21, but was directed to do so when the agenda item is called. Volume 56 — Page 129 INDEX C -3613 Water Pump Purchase (38) City of Newport Beach City Council Minutes May 13, 2003 INDEX Richard Spane stated that he is not a member of any group, but is a private citizen who is concerned about the $3.8 million expenditure to the Airport Working Group (AWG) and Citizens for Jobs and the Economy (CJ &E). He stated that Article 5 calls for an audit of the moneys and, in October 2002, Council Member Adams noted that the agreement required an audit and Mayor Pro Tem Ridgeway said the City will be conducting an audit in about a month. He indicated that no audit has been conducted to date, but the nearest thing to it is a report by an outside firm. He believed that the report raises more questions than it answers, which could result in jail time for someone. He noted that money had been spent on projects that were cancelled, spent where tangible and measurable outputs were not produced, spent after a February 12, 2002 deadline, and over $200,000 was not spent. He believed that this Council should conduct an audit before it starts considering raising fees, taxes, or anything else with the public's money. City Attorney Burnham stated that the analysis that was conducted was very thorough. He disagreed with Mr. Spane's contention that the report suggested that any criminal violations occurred. He reported that the City granted AWG an amount less than what Mr.. Spane stated. He stated that the grant was very broad in terms of the authorized uses of the funds and did not have a termination date. He noted that there was no point in time at which the City had the legal authority to require AWG to return any money. He added that, from the report and the presentation, the firm generally found that AWG used the funds in compliance with the terms and conditions of the grant. Mayor Bromberg stated that most, if not all, of the participants who were involved testified and answered all the questions that were raised, and answered to the satisfaction of the firm that was doing the review. He agreed that the firm said the report was not an audit, but a review; however, it was the closest thing he has seen to an audit. He noted that no wrong doing was ever suggested until tonight. Mayor Pro Tem Ridgeway stated that there was a noticed public hearing about this report as requested by Council Member Heffernan and that Council Member Heffernan represented a lot of what Mr. Spane was saying. He indicated that, after the hearing, Council was satisfied that there was no wrongdoing. Laura Dietz stated that she is part of a group that is planning Corona del Mar's centennial. She indicated that she has been appointed chairperson of the history committee. She stated that anyone with wonderful memories about Corona del Mar can contact B.J. Johnson at Prudential Realty or her at 949- 721 -8035. Dolores Otting stated that her mother -in -law is in a skilled nursing facility in the City and she discovered a hole in the ground under the vent that had no ducts, pipes, or sleeves, but just dirt. She thanked Principal Building Inspector Baltera, the Mayor, and Code Enforcement Supervisor Sinasek for all the work they did to remedy the problem. She strongly urged families with loved ones in this sort of facility to pull the vents from the floor and wall, and ask when they were last inspected. She noted that this information goes back to the State's Licensing and Certification Division, and added that they are supposed to do the inspections. Volume 56 — Page 130 City of Newport Beach City Council Minutes May 13, 2003 INDEX Ms. Otting reported that, when the meetings are being broadcast live and people pull agenda items, the public does not know what you are talking about because only the reruns have captions. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Ad Hoc General Plan Update Committee (GPUC). Council Member Adams stated that GPUC met yesterday, noting that they generally meet the Mondays preceding Council meetings. He reported that GPUC made a recommendation to Council regarding the District 2 replacement on GPAC; made a recommendation to Council regarding EIP Associate's scope and fee proposal for the professional work necessary for the General Plan Update; and had a presentation on the fiscal impact analysis which was created as a tool for the General Plan Update. He indicated that GPUC will probably be on hiatus for the next two or three months; however GPAC will continue to meet monthly. Local Coastal Program Certification Committee. Mayor Pro Tem Ridgeway stated that the draft document was circulated and can be viewed or checked out at the library and in the Planning Department. He reported that the Coastal Commission has a copy and promised to provide a summary.of their comments by June 6. He stated that GPAC will be reviewing it on June 9 and EQAC is scheduled to consider their subcommittee's report on June, 19. He reported that, once they assimilated all the comments, they will reconvene the committee and try to create a final document. He stated that the document was supposed to be in by June 30, but they will not be able to meet this deadline. He noted that the Coastal Commission is satisfied that the City is acting in good faith. Newport Coast Advisory Committee. Assistant City Manager Kiff stated that they meet every first Wednesday of the month at 5:30 p.m. at the Newport Coast Elementary School, and the meetings are open to the public. He reported that most of the discussion at the last meeting centered around the placement of a community center at the corner of San Joaquin Road and Newport Coast Drive, adjacent to Newport Ridge Park, and how they would dialogue with the community about whether they wanted it placed there, what it would look like, and what facilities it would have. He stated that this will be discussed at the next meeting and they may talk with a couple of consultants or architects about moving forward with a needs assessment. Council Member Adams recommended that another line item be included on the agenda after Item L that reads, "Reports on Other Committee Activities ", since it looks like Council is only giving reports on the four listed committees. He noted that the original intention of the item was to provide Council the opportunity to report on all their committee activities. Mayor Pro Tem Ridgeway reported that, about a week and a half ago, he and 11 other representatives from Coastkeepers, Newport Beach Naturalists, Irvine Ranch Water District, and the County met with Senator Feinstein for one hour to try to secure $25 million in federal funding for the Upper Newport Bay dredging project which is scheduled to start in October 2004. He reported that the entire project will cost about $38 million, but noted that $13 million has been secured from the County, State, and the City. He stated that Senator Feinstein was a strong advocate to secure these moneys and the lead agent is Vicky Wilson from the County. He added that the Lower Bay dredging needs about $4.8 million and Volume 56 — Page 131 City of Newport Beach City Council Minutes May 13, 2003 INDEX they asked Senator Feinstein for this money also. He reported that he, Assistant City Manager Kiff, and Harbor Resources Director Rossmiller spent Monday morning with Senator Feinstein's aide and were encouraged with the attempt to get money this year so they can commence the dredging of the turning basin in the Lower Bay in September. Mariners Joint Use Library Ad Hoc Steering Committee. Council Member Webb reported that the next meeting will be held on May 14 at 4:00 p.m. at the Mariners School Library. He stated that they will be discussing interior and exterior colors, as well as access issues. He reported that, at their last meeting, they appointed Chris Wilkinson and Ann Johnson to the committee. League of California Cities — Orange County Divisions. Council Member Webb stated that they recommended that the makeup of the Orange County Transportation Authority Board consist of ten members with each district having two members appointed, one will be based on a population vote and the other would be voted on by the city. He added that he was also elected to the Airport Land Use Commission. Orange County Sanitation District Urban Runoff Program Committee. Council Member Webb stated that they discussed urban runoff, diversions, and what limits should be placed on them. He indicated that the City needs to keep an eye on this because it could end up, potentially having to pay a fairly substantial amount of money if there are divisions from storm drains into sewers. Transportation Corridor Agency Board. Council Member Webb stated that they approved toll taking machines that could accept bills, change, and potentially credit cards. Redistricting Committee. Mayor Bromberg reported that he chairs this committee and they have two scenarios that will be presented to Council on May 27. Environmental Quality Advisory Committee (EQAC). Council Member Nichols reported that EQAC received a presentation about the General Plan Traffic Study and they considered the EIR on a natural treatment system. He explained that the system uses a set of ponds to divert storm drains into the wetlands which will help purify the water before it passes into the Bay. Council Member Nichols reported that work is starting at Prado Dam, in the Santa Ana Canyon, to double its size by adding 28 feet in height. He stated that its current capacity can hold the 90 year storm, but the new capacity will be able to contain the 180 year storm. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 17. PLANNING COMMISSION AGENDA FOR MAY 8, 2003. Senior Planner Garcia reported that the first three items that the Commission heard were approved with little discussion, but there was discussion on Item 4 related to the parking waiver. He noted that Item 5 dealt with adding a Consent Calendar to the Commission agenda for routine items. He stated that Items 1 through 4 are subject to appeal or Volume 56 — Page 132 City of Newport Beach City Council Minutes May 13, 2003 call up by Council. Council Member Heffernan asked the City Attorney if having a Consent Calendar on the Commission agenda is new. City Attorney Burnham stated that he does not believe their agenda has ever had this before, but indicated that this section would be used for very routine items. Council Member Heffernan indicated that he thought most of their routine items went to the Modifications Committee. He asked if things will slide by without public overview. Mr. Burnham stated that the vast majority of items considered by the Commission require hearings and those items will not be on the Consent Calendar. Assistant City Manager Wood stated that the Commission discussed procedures to put items on the Consent Calendar. She indicated that the Consent Calendar would include the minutes, as they are for Council, and staffs findings of substantial conformity with conditions of approval on a project that had been approved previously but, in the course of development, the applicant changed something small. Mr. Burnham stated that the Commission's agenda has remained pretty constant, but noted that Council has changed its procedures, the order of items on the agenda, and added and taken items or categories away. City Manager Bludau added that this also looks at what might happen once the Local. Coastal Program is certified since their workload may increase dramatically. N. PUBLIC HEARINGS 18. REVIEW, APPROVAL, AND SUBMISSION OF THE FY 2003 -2004 ONE -YEAR ACTION PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD). Associate Planner Trimble reported that Council heard this item about a month ago and approved it. He stated that they are doing a program which parlances an action plan and explains how the City will be spending its $426,000 in CDBG funds. He noted that portions of that will go to social service providers for construction projects, repayment of Section 108 loans, and ADA improvements throughout the City. Mayor Bromberg opened the public hearing. Jean Wegener, Executive Director of Serving People In Need (SPIN), thanked Council for its support of SPIN on behalf of the Board of Directors and the people they serve. She indicated that the population that they serve happens to be the No. 1 priority for HUD this year. Kathleen Bowman, Executive Director of WISE Place, stated that they have a transitional shelter in Santa Ana. She thanked Council for their support and recommendation. She reported that their program is for women who are homeless. She indicated that they serve women from all over Orange County, including Newport Beach. Hearing no further testimony, Mayor Bromberg closed the public hearing. Motion by Mavor Pro Tem Ridgeway to approve the Action Plan for submittal to HUD. Volume 56 — Page 133 I►I13 CDBG One -Year Action Plan (87) City of Newport Beach City Council Minutes May 13, 2003 The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Mayor Bromberg Noes: None Abstain: Nichols Absent: None O. CONTINUED BUSINESS 19. APPOINTMENTS BY THE CITY COUNCIL TO ENVIRONMENTAL QUALITY AFFAIRS CITIZENS ADVISORY COMMITTEE AND THE AVIATION COMMITTEE. Mayor Pro Tem Ridgeway stated that he would like to appoint Henry Arjad as the alternate to the Aviation Committee. He reported that Mr. Arjad is a pilot, has been a peninsula resident since 1974, has 2,700 flying hours, and has two airplanes housed at John Wayne Airport (JWA). Motion by Council Member Adams to confirm Mayor Pro Tem Ridgeway's appointment of Henry Arjad as the District 1 alternate on the Aviation Committee. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 20. PROPOSED REVISION TO CITY COUNCIL POLICY B -9 — NAMING OF CITY PARKS. Recreation and Senior Services Director Knight stated that this item was raised at the Parks, Beaches and Recreation Commission (PB &R) meeting after several requests were received to name a park site after an individual in the community who made notable contributions to the City. However, PB &R is recommending to Council that the policy be changed to remove the ability to name a park after an individual since there are many deserving individuals in the community but not many naming opportunities to honor them. She stated that staff concurs with PB &R's recommendation and also recommends that the policy be amended to not allow the naming of any parks or City facilities in honor of an individual. She noted that this item was before Council at the April 22, 2003 Study Session. She stated that Council concurred with the recommendations and asked that the policy be clear that any recommendation or request first go to PB &R and then to Council for final approval. Motion by Mavor Pro Tem Ridgewav to approve amended City Council Policy B -9 Naming of City Parks (formerly I -9) as recommended by the Parks, Beaches and Recreation Commission and staff. Volume 56 — Page 134 INDEX Environmental Quality Affairs Citizens Advisory Committee (EQAC)/ Aviation Committee (24) Policy B -9 (69) City of Newport Beach City Council Minutes May 13, 2003 Mayor Bromberg referenced Section B of the policy and asked that this be clarified. He noted that the there are facilities that are owned by the City but are run by other operations. He believed that the policy should apply to ball fields, parks, libraries, or places that are operated by the City, as opposed to an outside enterprise that is not operating the facility on behalf of the City even though it is a public facility. Council Member Adams asked why the City would not want any say over a building that is owned by the City but operated by others. Using the Balboa Theater as an example, Mayor Bromberg indicated that the only connection the City has with the theater is that it owns the building. He asked the City Attorney if he was comfortable that the existing language takes care of this so it is not confusing in ten years. City Attorney Burnham noted that the policy might change by that time. Council Member Heffernan asked about existing commitments. Mayor Pro Tem Ridgeway believed that the policy is from this day forward. City Manager Bludau stated that some commitments have been made regarding Mariners Library and were entered into in good faith. He believed that Council would not want to take away what might have been promised to people who offered money towards the project. Mayor Bromberg added that he believes it is the intent of the policy to apply from this day forward, and any previous commitments should stand. Mr. Burnham stated that a statement can be added that states that the provisions of this policy shall not apply to commitments made prior to May 13, 2003. Mayor Pro Tern Ridaewav amended his motion to include that the provisions of this policy shall not apply to commitments made prior to May 13, 2003. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 21. ORDINANCE ESTABLISHING SAFETY ENHANCEMENT ZONES, DESIGNATING A PORTION OF AN AREA IN WEST NEWPORT BEACH AS .A SAFETY ENHANCEMENT ZONE DURING JULY FOURTH AND AMENDING CERTAIN SECTIONS IN CHAPTERS 1.04, 1.05, 5.11, 5.95 AND 10.58 OF THE NEWPORT BEACH MUNICIPAL CODE TO INCREASE FINES AND PENALTIES FOR MUNICIPAL CODE VIOLATIONS, PROHIBIT THE DELIVERY OF ALCOHOL TO ALCOHOL BEVERAGE OUTLETS, INCREASE THE RESPONSIBILITIES OF THE OWNERS OF SHORT TERM LODGINGS AND REQUIRE IMMEDIATE TERMINATION OF CERTAIN ACTIVITIES UPON REQUEST OF A PEACE OFFICER IN AN AREA DESIGNATED AS A SAFETY ENHANCEMENT ZONE AND DURING THE TIME THE DESIGNATION IS EFFECTIVE. Volume 56 — Page 135 INDEX Ord 2003 -5 July 4th Safety Enhancement Zone West Newport (70) City of Newport Beach City Council Minutes May 13, 2003 City Attorney Burnham reported that, after July 4, 2002, Council appointed West Newport Beach residents and Council Members Proctor and Ridgeway to the July 4th Safety Committee which met six or seven times. He stated that the meetings were well attended by residents and individuals interested in this issue. He reported that the committee conducted a comprehensive survey of West Newport residents with respect to how to deal with the July 4th situation. He stated that the committee studied the results of the survey and noted that the ordinance is a result of the work of the committee and the survey. Mr. Burnham explained that the ordinance does not prohibit people from having or attending parties, or drinking alcohol in compliance with the law. He indicated that he provided red -line copies of the ordinance at the table. He further clarified that the ordinance establishes a Safety Enhancement Zone in the area bounded by 541h Street, the Pacific Ocean, 32 ^d Street, Newport Boulevard, and Coast Highway that will be applicable only on July 41h and the first two hours of July 51h. He stated that the ordinance would increase fines for administrative citations issued within the area and 26 hour period, and adds a condition to short term lodging permits so owners of units within the zone have to take immediate action to prevent unruly or illegal behavior by the occupants. He reported that the ordinance does the same thing with respect to both property owners and occupants that, when there is a request by a law enforcement officer, they have an obligation to take immediate action to terminate the unruly or illegal behavior. He stated that the provisions reflect the fact that the police have a very heavy workload, are frequently unable to move back to a location from which they came from because of other pressing duties, and there is a serious potential for a major disturbance in West Newport due to the crowds and some of the illegal activities. He reported that the ordinance also prohibits the delivery of alcohol to alcoholic beverage outlets in the zone during the 26 hour period. He stated that the City is required to send a letter to each property owner and occupant within the zone explaining the ordinance. Further, the City is also required to post notices at the boundaries of the zone indicating that there will be enhanced penalties during that time. Captain Henisey showed a video that depicted the activities that took place in the West Newport area during the last 4th of July. Mayor Pro Tem Ridgeway reported that, last year, there were 14 felony arrests, 148 misdemeanor arrests, 110 business and professionals code violations, 11 health and safety code violations, 341 municipal code violations, 171 vehicle code violations, 711 parking violations, and 35 disturbance advisements. Paul Watkins believed that Council will hear tonight that the ordinance, in response to what was on the video is unpatriotic, an unconstitutional action, and is in violation of civil rights. However, he is asking Council to consider whether it is truly these things if it only wants to reduce the number of arrests. He noted that it was not mentioned that there were three rapes, a gang rape, 14 bike thefts, a victim suffered 18 stitches in his head, another victim suffered broken teeth and a broken nose, gunfire, and a near riot when a crowd of 300 surrounded police officers. Volume 56 — Page 136 City of Newport Beach City Council Minutes May 13, 2003 I He asked if the video is of Florence and Normandy after the first Rodney King verdict or the Watts riot of the early 1960s, but noted it is actually of West Newport. He asked Council to act wisely to send a message that Newport will no longer tolerate this behavior all under the guise of a little fun on Independence Day. He stated that, in 54 days, we should be able to celebrate a safe and sane day of independence, and not a day of irresponsibility. He requested that Council adopt the ordinance as presented. Jim Miller, West Newport Homeowners Association President, thanked Council for all its effort in making West Newport safe on July 4th. He noted that the ordinance was drafted as a response to citizen complaints and its goal is to reduce excessive alcohol consumption and give the police the tools they need in order to reduce violence and other crimes. Kristen Miller thanked Council for trying to make the City safer. She reported that, last July 4th, she and her friends were riding their bikes near Newport Pier and a fight broke out. She stated that there were 40 to 50 people and they saw someone knocked unconscious and bleeding. She noted that parents and their children were trying to turn away. She added that a drunk, large person passed out on her bike which knocked her and her friend off their bikes. Bob Small stated that he has spoken to Council on a number of occasions, but did not attend the committee meetings. He believed that the provisions are good but misses the point that it is not the landlords or tenants that cause the problems but the people who are encouraged to come to the City to party during July 4th. He asked that there be a way for the police, homeowners, and tenants to work together to attack the problem areas, as opposed to fining the landlords and tenants. He stated that, when he was a renter, the police helped him break up his parties, and now that he is a landlord, he tries to rent to tenants that won't cause problems. He noted that people sometimes use agencies to rent their properties. He asked how the cause of the problem will be identified since people who are not invited show up to the party. Mayor Pro Tem Ridgeway stated that, regarding the fines, the agents and realtors will need to take this into consideration when they get their deposit. He reported that the landlord is only liable if the fines do not get paid by the tenant. Paul Pery stated that he represents FreeNewport.com. He indicated that FreeNewport.com staff and supporters of constitutional rights walked a July 4th petition around the neighborhoods and local businesses to inform and educate West Newport, as well as identify the neighbor's views of the ordinance. He noted that, in ten days, they collected over 1,000 signatures from mostly zone residents. He believed that the petition indicates that residents /voters strongly oppose the ordinance and ask that Council rethink its position since the signatures represent the will of the constituents. He pointed out that a majority of the citations /arrests are from non - residents. He believed that there are other rational means to accomplish a safe and fun July 4th and used the Taste of Newport as an example. He believed that the ordinance unequally targets homeowners Volume 56 — Page 137 City of Newport Beach City Council Minutes May 13, 2003 and renters. 11013 D/:1 Mayor Bromberg noted that the City received the petition which had five items on it. He stated that three of the items say not to impose the fines, and the others say that City Council should not end delivery of alcohol to alcohol establishments, and it should not ban businesses from storing alcohol outside. He indicated that a legitimate petition will tell the people what the issue is. He stated that, so far, he is hearing that the people who live there are talking about the issues and problems tonight. He noted that being a renter is not an issue here, but the petition needs to bring up both sides. Werner Escher stated that he felt informed and educated by looking at the video and did not realize how bad it was. He applauded Council for trying to make an attempt to reduce the mayhem. Cullen Sheward stated that rapes and stabbings are horrible, but you cannot judge them because of a few bad apples or make regulations or laws that hurt everyone because people make bad decisions. He indicated that he is opposed and that adding more police and having more of a crackdown is a mistake. He believed that the City will end up with more issues. He added that the people raping, stabbing, and killing are not from the City, are drunk, and out of control. He stated that the people who live here have a respect for the community and are not here to hurt anyone, but to enjoy July 4th. He agreed that people who own property have the right to have their property and person protected, but he believed he should also be able to enjoy the day. Council Member Adams asked how this will hurt Mr. Sheward and inhibit law abiding celebration. Mr. Sheward believed that the Newport Beach Police Department is sufficient to handle July 4th. Council Member Adams noted that additional police is not included in the ordinance. City Attorney Burnham clarified that Council authorized $55,000 to fund additional law enforcement personnel to assist the police on that occasion, but the ordinance does not address police presence or staffing levels. Matt Olsen explained how the ordinance may affect him and stated that, on July 4th, he may have 50 friends of legal drinking age at his house, a pretty girl may walk by, and he stops her to talk. He proceeded by saying police officers tell her she cannot stand there and she needs to keep moving or she will be ticketed. He believed that Balboa residents live in constant fear of being harassed by the police and ticketed for something they did not know was illegal in the first place. He continued the scenario, but stating that after the girl keeps walking, he decides to continue the conversation on the street; however, he mistakenly brings his beer, is stopped by police, and receives a $100 ticket. He believed that, if the ordinance passes this year, he will be given a $300 ticket. He indicated that the police officers that just ticketed him can now declare his gathering out of control. He noted that there is no guideline for "out of control" and this will be at the officer's discretion. He added that, if it takes him 11 minutes to clear people out of his house, he will receive another $300 fine. He believed this is ridiculous, unacceptable, and un- Volume 56 — Page 138 City of Newport Beach City Council Minutes May 13, 2003 INDEX American. fie stated that the police should protect and serve, not break up peaceful gatherings. Elliot Leonard stated that the ordinance is about assuming and assessing responsibility. He believed that the assessment will make people assume more responsibility. Lori Morris believed that the City thought FreeNewport.com would not find support from homeowners in West Newport; however, there are homeowners in attendance who feel the new bans and regulations are violations of the Eighth Amendment. She believed that the proposed fines are excessive and border on ridiculous, noting that they already have consequences for violators of local ordinances. She stated that the July 4th holiday is about the freedoms that citizens hold as an absolute truth that the government cannot impose its will upon the people. She believed that the ordinance will trample the rights of property owners and businesses who pay taxes to operate within the City's borders. She stated that, to tell a merchant it cannot do business on a particular day, is akin to the government the U.S. just opposed in Iraq. She indicated that the show of force that the Newport Beach Police Department uses on this day has been utilized effectively the last'two years, believing there has been a more controlled atmosphere than years past. She expressed her concern that one area is singled out for higher fines and regulations, and asked if it is to limit the number of people who would object to the ordinance. She believed that, if the fines were reduced Citywide, it may reduce the need for police response in other areas. She' also read apart of the First Amendment. William Filer stated that he is an owner and landlord, and does his best to screen tenants. He believed that, if he leaves July 4th, he should not be responsible if someone from outside the community barges on their property and causes problems. He stated that he was sorry Miss Miller had a problem with a drunk falling on her bike, but the war on drugs has shown that locking people up does not sway criminal activity. He believed that the drunken fool is not going to stop their activity once they are drunk. He noted that the fines will fill the City's coffers but he does not feel he should pay fines if someone barges onto his tenant's property. He stated that, if there needs to be a greater police presence, the City should do that, but not impose additional fines since the current fines are sufficient. He .believed that administrative citations are convenient for the City because the people do not need legal counsel. He explained that rights are waived by default, the fines are paid in advance, and then a person has to challenge the citation in front of a hearing officer. He believed that this ordinance starts prohibition again and people are losing their judicial rights. Mike Gordon stated that he is an owner and landlord in the area, and expressed his support of the ordinance. He believed that the police in the City are reasonable and, if there is an honest effort by a landlord or tenant, they will use discretion, work with them, and assist them in removing an unwelcome out of towner. He indicated that every year, the two bedroom, one bathroom house near him has about 100 people on their property and his house gets urinated on. He stated that it is fine if Volume 56 — Page 139 City of Newport Beach City Council Minutes May 13, 2003 `Ii�fI7D1:� someone wants to have a party it they keep it reasonable and at a reasonable hour, but they need to realize that people work the next day. Larry Lifer commended Council and the people who worked on this. He expressed his hope that it will be short term so the word can get out that Newport Beach is not a place to come for riotous behavior. He believed that July 4th has gotten worse over the years and that it is going to take something like this ordinance to get the word out. Burt Thayer stated that, for as long as he could remember, July 4th has always been his favorite day of the year, but now it seems that the City is trying to get rid of it by gradually banning the freedom to celebrate the holiday. He asked why the City is not capitalizing on the visitors, noting that New Orleans can handle Mardi Gras for two weeks. He added that the City conducts the Taste of Newport and is organized, and suggested shutting down streets. He stated that San Diego has Street Scene in which they close off an area and people pay to get in and drink. He noted that Mayor Pro Tem Ridgeway listed municipal code violations as one of the problems, but now the City wants to induce more codes as a solution. He believed that many of the problems come from the current ordinances and police's enforcement of them since they sometimes do and sometimes don't enforce them. He stated he does not want there to be riots on July 4th, but he does not want to be triple fined if he makes a mistake. He believed that this should be researched more and that it would be irresponsible for Council to pass the ordinance as proposed, especially since it is almost impossible to get rid of it once it goes into effect. Mr. Burnham stated that the last speaker raised issues that the committee debated. He indicated that this area is unlike New Orleans, San Diego, or the Taste of Newport because it is a large residential area, not a single street commercial area or private property. He emphasized that public property provides a lot of coastal access and that the area is different than anywhere else the Police Department found in the United States. He added that the City has a limited capacity to control access. Jim Hildreth indicated that after ten minutes, people would get a $1,000 fine, not a $300 fine. He stated that he disagrees with holding the landlords responsible because you cannot control people and people have the right to live their lives. He asked if this is an adoption of what they did in Huntington Beach because he heard a rumor that all the fines issued there were thrown out. Further, there was a rumor that the City has an ordinance about needing a permit to have 15 people at one location. He asked if the police are jeopardizing the citizens of the City if they force a place to shutdown and make the people who have consumed alcohol leave the premises. He stated that the party will go on and there should be a paddy wagon since there will be people drunk in public. He believed that this is only a revenue ordinance for the City and that it should let people in, but get them when they try to leave because DUIs will generate a lot more revenue. In response to Mayor Bromberg's question, Police Chief McDonell indicated that the City has about 100,000 people in West Newport during July 4th. Mayor Bromberg agreed that people have the right to live their Volume 56 — Page 140 City of Newport Beach City Council Minutes May 13, 2003 INDEX life, but Miss Miller has the right not to have someone interfere with her peace and quiet, as does everyone that lives there. He indicated that, if people would take responsibility for their actions, this discussion would not be happening. Brandon Finney stated that Council is here to represent all of the City, including the younger residents that rent homes. He indicated that they want to live a nice, prosperous, safe, and secure life, but he believed that Council has lost touch with the youth of Newport Beach. He added that, with the continual and additional restrictions, it will only hurt Newport Beach residents and business owners. He believed that July 4th is probably the most profitable day for most local businesses. He stated that the more restrictions, greater fines, unneeded increase in the police force, and the never ending new laws will only hurt the City in the long run. He indicated that, if the City scares or eliminates people from coming on July 4th or any other time of the year, the City will only be decreasing its and local businesses' annual revenue. He asked Council not to forget the excitement July 4th brings to the younger and older residents of Newport Beach. He noted that this is the day the nation celebrates freedom and should not be a day that Council, the police, and other forces celebrate a day of local resident restrictions. Geoff Shively believed that no one understands the real solution to this, even though they know they do not want the fines or new laws in place. He indicated that he was not aware of the committee that created this ordinance and believed that others were not aware of the committee either. He stated that many of the people are presenting issues, but are not solutions. He believed that this is not the time to pass or finalize something that the majority of the people in the area do not agree with because they were not part of the development of this. He suggested having another committee reevaluate the problem and gain more information, or create a legal petition. He indicated that he does not have any suggestions right now on how to handle this. Mayor Bromberg pointed out that the Fourth of July Committee is an open committee and was created in September 2002. Mr. Shively apologized for not knowing about this and believed there were others in the audience who were not aware of the meetings. He stated that this has raised a lot of awareness and, if anyone would reconsider forming this, or trying to create a different foundation that this was built on, it would be appreciated by those contesting this tonight. Mayor Bromberg noted that, whether the ordinance is adopted, the committee will still be alive because the City will learn a lot of what happens this year. He indicated that this does not mean it will not be modified next year. Council Member Proctor reported that, prior to September 2002, he has asked on seven or eight occasions for public support and input on this issue, 15,000 letters were sent out on three different occasions, a poll was taken, they received back a substantial number of responses, and had six or seven meetings. He stated that he does not understand how the City could have done more to get people engaged. He pointed out that there are 56 days until July 4th and they are running out of time to implement something. He stated that they have tried to reach out to the community. Council Member Proctor reported that, after the questionnaires came Volume 56 — Page 141 City of Newport Beach City Council Minutes May 13, 2003 INDEX back, they compiled the suggestions and went middle -of- the -road from those suggestions. He suggested scheduling a follow -up meeting of the committee so the people who are testifying can come forward with suggestions. He noted that one of the suggestions from the survey was to border off the City so people from out of town could not come in. He emphasized that the City cannot legally do this. Mayor Bromberg stated that the City can make the Chambers available for this meeting. Peter Smith stated that he is a property owner and has year -round and summer tenants. He expressed concerns about tripling the fines if his tenants get out of hand. He indicated that he has had to stop his tenants' parties before; however, now his tenants are well behaved and are courteous. He stated that property owners need to take responsibility for their property and for choosing their tenants. He indicated that they will not be renting out their property the week of July 4th and that he does not believe one day makes a huge difference in the overall revenue of the businesses. He pointed out that the reputation of Newport Beach is more important. He stated that it is the property owner's responsibility to find good tenants, work with the rental agent to get good tenants, and write provisions into the leases or rental agreements that precludes these situations. He believed that the police will work with property owners if they are truly making an effort to get the situation under control. He agreed that, if after July 4th it is discovered that this is not what the City needs, Council can change it. Valerie Sexton stated that they realize this is a big problem and believed that the committee made a good effort to come up with ways to control it better. She added that controlling the sale of alcohol is a good part of the ordinance. However, she explained that the reason a lot of 39th Street residents are in attendance is because it is Independence Day and they resent more government interference on individual liberties. She added that they understand the potential for bodily harm and they feel terrible for what has happened to Miss Miller and others because they do not want those things to happen, but it is Independence Day and Crackdown Day at the same time. She asked if there is anywhere else in the City where a party goes out of control. Mayor Bromberg indicated that it does not happen like this. Ms. Sexton asked who set the 32nd Street boundary, noting that Miss Miller saw the violence near the Newport Pier. She asked why this is not a Citywide ordinance. Greg Farley agreed that the City cannot identify one area because this happens up and down the peninsula, even to the Wedge. He believed that this ruling will affect his property values, compared to someone on 31st Street or 291h Street. He stated that the City should look at limiting the traffic onto the peninsula to slow down the onslaught of out of town visitors. Council Member Proctor indicated that the committee heard and considered this suggestion and looked into the legalities of it, but it could not be done. Mike Cooper stated that it sounds like a lot of arrests and misdemeanors, but noted that there were over 100,000 people there, which means that only about .03% of the people were causing trouble. He indicated that he was at a Dodgers game the other weekend with about 50,000 people and Volume 56 —Page 142 City of Newport Beach City Council Minutes May 13, 2003 INDEX reported that he saw about 25 fights. He believed that the ordinance is not representing the majority and there will always be bad people no matter where you go, so he is not sure why everyone should be punished for a couple of bad eggs. He agreed that what happened to Miss Miller was unjustifiable, but asked how anyone knows that this will not happen in June or tomorrow. He stated that people will do what they do and ordinances will not change them. He asked, if the area is shut down, what will stop them from going someplace else. He indicated that he sees stuff like this every weekend at the bars. Edward McLaughlin asked how many of the 162 arrests were, convictions. He stated that all he saw in the video were people acting out against law enforcement. He believed that, if people had an officer at each end of the block, they would end up doing something wrong because everyone does wrong things. He stated that he printed out July 5th information from his computer and reported that the Daily Pilot stated that Newport Beach recorded typical number of arrests for the holiday, but the large police presence kept the festivities in control and the large throngs of partiers maintained a mellow mood throughout the day. Further, a CHP officer stated that he has not given a ticket out or has not seen anyone with an open container. He noted that only 55 arrests were made by 10:00 p.m. and they felt that it has been quieter than in the past. Mr. McLaughlin also looked up the New Orleans Police Department on his computer which reported that they bring in 106 extra officers for Mardi Gras. Roy Lee Ray stated that he grew up in the City and that July 4th has been a riot his entire life to the point he has left the last three years. He indicated that the argument tonight is about breaking the law or not breaking the law. He stated that the people are not partying, but creating a riot. He noted that this is not about freedom, but about law abiding citizens enjoying the Fourth of July. He stated that he is furious that people are applauding a riot. He indicated that the laws are being created to produce the order that has been lost. He emphasized that laws have been broken, people have been treaded upon, and their freedoms have been taken away under the justification that they want to get drunk and party. Mr. Ray indicated that he used to have a drug house next to him but he worked with the Police Department to work within the law to deal with him. He noted that the property at that time was owned by someone who lives in Portland. He stated that the law is not about forcing people to behave themselves, but has come about because of a tyranny of drugs. He believed that July 4th has been a riot, people are trying to justify a riot, there is no justification for a riot, and there is no profit in a riot. He stated that Council is doing the right thing. Margy Dorney stated that she has been a member of the committee and reported that they have worked very hard to come up with a solution that protects everyone's rights, yet have responsible partying. She assured everyone that they all want to safely support the Fourth of July. She stated that there will be more good ideas brought up at future meetings and strongly supports the ordinance. Brian Clarkson stated that he did not hear the result of the July 4th survey in which the City proposed everything except putting up a fence Volume 56 —Page 143 City of Newport Beach City Council Minutes May 13, 2003 INDEX around West Newport or requiring wristbands to get in. Mr. Burnham indicated that he can provide Mr. Clarkson with a copy of the results if he contacts him. Council Member Proctor reported that over 80% wanted a lot more extensive restrictions than what is in the ordinance, i.e. wristbands, stopping cars, prohibiting non - residents from entering the area, and fencing off the area; and 90% wanted a lot more done than what was done last year with regard to police presence. He stated that the committee compromised significantly downward from what the majority who responded wanted. He indicated that about 15% wanted to continue to party and have less police enforcement. Mr. Clarkson indicated that FreeNewport.com would be happy to help the City if it wanted to solicit ideas from West Newport. He stated that, on a limited budget, they were able to fill the room so he is not sure where the City was looking for people. Council Member Adams noted that Council has meetings twice a month for the last hundred years and they are there for the people to come to them with concerns. Council Member Webb stated that one of the ways Air. Clarkson can help the City is to prove that the City is wrong by organizing FreeNewport.com to have a safe and sane atmosphere, and cut down on the problems. He believed that, if this passed tonight, and there was a safe July 4th without this atmosphere, Council may look at modifying the ordinance later. Mr. Clarkson agreed and stated that one of the things FreeNewport.com will recommend and push is to tell people to use Friday, July 4 to prepare, but celebrate on July 5 since all the laws expire at 3:00 a.m. He stated that they are not encouraging people to break the laws, but businesses will be able to deliver alcohol on that day so they can celebrate. Mayor Bromberg indicated that they are not looking for a solution, but a way to get out of it. Mr. Clarkson stated that he did not attend any of the committee meetings because it was his understanding that there were only two residents involved. Mayor Bromberg clarified that it is an open meeting and many residents attended, Mr. Clarkson stated that he did not know about the meetings and believed that none of the other West Newport residents knew about it either. He concluded by quoting Benjamin Franklin. Daryl Withrow stated that he owns a business in the City and three criminals came into his building and stole $40,000 worth of merchandise. He indicated that this is a lot worse than drinking and reported that they only spent 90 days in jail. He believed that Council needs to concentrate on this. Keith Eberl stated that he has attended July 4th festivities every year since he moved here. He believed that law enforcement is only half the solution and that creative problem solving is required. He noted that there are too many people in one area and there are people from out of town in an area where there is no place for them to go. He suggested that the City provide licenses for bars to sell liquor in their parking lots and make a festival out of it. He stated that this will decentralize the crowd in West Newport and scatter them to other places where there could be controls. He expressed concern that Council is asking the residents for solutions, but no one is providing any except for the one that will be voted on. Council Member Proctor stated that Mr. Eberl's suggestion was Volume 56 — Page 144 City of Newport Beach City Council Minutes May 13, 2003 INDEX discussed, but the committee could not find anyone who wanted to move this crowd to their location. Jeff Edleblu also asked for a copy of the survey. He stated that he works with the National Gallup Polls and believed that no one can survey 48% of the population. Jed Yocam stated that letters were sent out, but he did not receive his until a week ago. He indicated that he only knew what was going on because he works for the Fire Department's Marine Division. He agreed that there is an influx of people to the area, but he takes responsibility for himself and his guests, and believed that every renter and homeowner does the same thing. He believed that the police will issue him a ticket if he did not get everyone out in ten minutes. He reported that someone purposely threw a beer can at him last July 4th and he looked for police for help; however, he was on Seashore Drive while most of the police are on Balboa Boulevard. He stated that the crowd told him to throw it back. He believed that there is more standing around by the police than patrolling. He stated that, if they patrolled the neighborhoods, there would be less conflicts and more peace. Gene Dorney stated that the evening started by hearing about how the fines are too high, how the local renters should not be. targeted, heard the Eighth Amendment, heard a quote by Benjamin Franklin, and now people are saying they did not get their notice. However, he noted that no serious opponent of the measure is talking about the reasons the ordinance is before Council. He indicated that no one can say that what is going on is safe. He stated that, in the world where the party always goes on, there are no responsibilities and no foreseeable injuries to people, just riots. He commended Council and the committee for this ordinance since this deals with years of trying to deal with the problem. He urged Council to adopt it and, if it doesn't work this year, Council can tweak it for next year. He pointed out that there are 54 days until July 4th Mike Madden suggested that the law enforcement presence only consist of Orange County Sheriffs Deputies and California Highway Patrol Officers, not Newport Beach Police Officers. He stated that distrust has built up against the Police Department and their judgment. He indicated that he served three years as a Deputy Sheriff and ten years on the military police.. He stated that, about two years ago, he started dealing with the Police Department, but he is having problems with them and believed their judgment is poor. He believed that the partygoers and guests will respect Sheriffs Deputies and CHP Officers more, and think they will have more authority than the Newport Beach officers. He stated that the officers are constantly treated poorly and have a lot of restraint, but believed their judgment is wrong because he was told he cannot talk on his cell phone behind his house at 7:30 p.m. He stated that the Police Department never adopted the community based policing that a lot of law enforcement agencies have adopted. Further, the people are not represented in the department. Mr. Madden stated that he was initially adamantly against the fences but now he agrees with the fences because it reduced the chaos in front of his house. He believed that fines are not the solution because people do not think about them when they Volume 56 — Page 145 City of Newport Beach City Council Minutes May 13, 2003 INDEX are committing the crime. He stated that people should have the right to party and enjoy themselves, and the merchants should not pay the price for not being able to get their alcohol delivered to sell legally. In response to Mayor Pro Tem Ridgeway's questions, Mr. Madden indicated that he does not condone chaos, but does not understand how the police determines who to cite. He stated that he has witnessed people at a party bash the police and walk away, the police run the stop sign in front of his house all night, and the police jump ATCs on the berms at 3:00 a.m. and tell him to get off the beach. Mayor Pro Tem Ridgeway took issue with Mr. Madden's attack on the Police Department. He emphasized that the City has a very offensive activity happening in the area. Jill Pearce believed that the problem does not particularly lie with the residents, but with the out of town visitors. She urged Council to delay adopting the ordinance and reopen the committee so everyone can feel they had their say and possibly come to a compromise. Chief McDonell stated that one of the biggest challenges on July 4th is to maintain a level of order with limited resources to deal with the problem. He explained that, if they had plenty of resources, they would not have had to import 30 CHP officers and 19 Sheriffs deputies to help them with the staffing. Regarding the comments by property owners that they were going to be penalized for their tenant's actions, he clarified that the ordinance only requires a best effort by the property owner to remedy the situation upon notification that they have tenants who are in the process of disorderly conduct or have done it in the past, and to prevent a reoccurrence. He stated that this does not suggest that the property owner will be subject to a fine immediately and without knowledge. Chief McDonell stated that they do not barge onto someone's personal property to break up a party and would only be on their property if there is a violation of law. Regarding Mr. Olsen's scenario, he noted that there is no law against a pretty girl stopping to talk to him while he is on his patio. However, he indicated that there is such a thing as unlawful assembly if it is declared by the police and then they would have to move along. He stated that no one will be cited for having someone on their patio when they are uninvited. He noted that, if they are having trouble with a guest on their patio, they can call the police and they will help them get the individual off their property. He stated that the officers will exercise their judgment in terms of an arrest or violation of the law, but they do that everyday. He indicated that they also have to justify the discretion in a court of law. Chief McDonell stated that a comment was made that someone is being treated in a despairing manner because he lives in the zone, but you can also say that he is receiving more service than those outside the zone because that is where the deployment is. He reported that this is not a Citywide problem on July 4th, but only in the zone. Although there were 162 arrests, he noted that this was only a fraction of the violations that occurred, emphasizing that they do not have the physical ability to arrest every violator of the law. He reported that there are many transportation vans /paddy wagons staged along Balboa Boulevard because they cannot get to the scene of the arrest due Volume 56 — Page 146 City of Newport Beach City Council Minutes May 13, 2003 INDEX to the congestion unless they do this. He stated that July 4th has been a problem for the ten years he has been the Police Chief and believed they have been able to manage it a little bit better by tweaking their resources and deployment each year. He indicated that he is most concerned about the use of fireworks because a fire in that congested area will jump from one place to another and they will not be able to get to people because of the crowd, congestion, and chaos that will ensue. He stated that it is a tinder box in terms of behavior and chaos that occurs every year. Mayor Bromberg believed that the most constructive thing from tonight is that, even those that are opposed to the ordinance, are willing to sit down to find a solution to the problem. He expressed concern that the founder of FreeNewport.com believes that the solution is not to violate the law on July 4th, but to go around it and violate the law on July 5th. He agreed that this is a question of responsibility. He noted that Council can look at this again next year and, if July 4th is not a problem anymore, the City will not have the need for this type of ordinance. He encouraged everyone to look for a solution and stated that Council is happy to meet with people. He stated that this day has gotten so out of control that the large majority of the people who live there, regardless if they are renters or owners, are tired of it and don't want to live like that anymore. He indicated that, if he was a landlord in this area, he would be concerned, but this also means he would have a responsibility and be proactive and affirmative to try to resolve the problem. He reported that Council has been receiving a lot of correspondence condemning Council because the ordinance is not stronger. He stated that this is the sense they are getting from people who live in West Newport and the peninsula. Council Member Proctor stated that after last year's July 4th, Council was approached by a number of residents about doing something. He noted that he was very reluctant about getting involved because he is not a proponent of a lot of governmental action trying to regulate conduct. However, the issue started driving itself. He stated that government's legitimate job is to try to balance the right to have a party against the obligation to see to it that it does not turn into a riot, people are not injured, and property is not damaged. He stated that the worry was that someone was, going to be injured or there was going to be a fire and they couldn't get rescue vehicles to them. He added that, as they got engaged in what they were going to do to try to have as minimal governmental intrusion as possible and preserve the right to have a good time while protecting the public, they decided on having as much public outreach as possible. He noted that there has not been one idea that was presented tonight that the committee didn't hear, discuss, and look at the legalities. He added that they even did a survey across the nation of what other cities are doing and how they solve these problems. He stated that they realized that Newport Beach has unique issues because it is a residential area. He noted that a majority of the people wanted more action taken than what was proposed. Council Member Proctor stated that he is surprised that there was public debate for two hours about the appropriateness of whether there should be unruly behavior and, if so, whether the City can impose a fine. He reported that the committee came up with more than just the ordinance, noting that there will be an increased police presence through the hiring of outside law enforcement, Volume 56 — Page 147 City of Newport Beach City Council Minutes May 13, 2003 INDEX and added lighting, barricades, street closures, portable toilets, and postings. He reported that liquor stores were using their parking lots to bring in extra liquor and store them in places where they were not legally permitted. Council Member Proctor added that there is also the question of accountability. He stated that, if the unruly and illegal behavior was to occur, there had to be some accountability. He emphasized that this is not about the hopes of fining people, but about the hopes of not fining people by stopping the kind of conduct that results in 162 arrests and 1,300 citations. He stated that it is good that everyone has come forward to highlight this issue and that it will be on the Channel 2 News so people from outside the community will be a little more reluctant to come to the City and involve themselves in illegal and unruly behavior. Further, the residents can then have a function that is safe. Council Member Proctor believed that the ordinance is balanced and a lot less restrictive than what the majority of people wanted. He emphasized that the goal is to save someone's life. Mayor Pro Tem Ridgeway stated that he also comes from the criminal defense side of the legal profession and deplores intrusion by government, but their charge is the health, safety, and welfare of a community that has been trampled on for 25 years. He stated that he used to party there, but never with the idea that he was going to get drunk and unruly. He added that he maintained his decorum because he had respect for the property and the City. He noted that, of the 32 people who spoke tonight, 25 were in agreement. He stated that people can have 50 people on their patio, but you lose your right when people become unruly, dangerous, or they impair the safety of the neighborhood. He noted that there are rules about alcohol for obvious reasons. Mayor Pro Tem Ridgeway stated that he would not bring his 8, 10, and 12 year old children there and asked who would. He highlighted Ms. Morris' statement and emphasized that the assembly should be peaceful. He noted that Mr. Filer supported the ordinance and stated that the City is trying to create a deterrent. He indicated that he and Council Member Proctor talked after the committee meetings and were not as happy with the intrusions but it is needed to send a message to the people in Los Angeles who bring down buses. He referenced Ms. Pearce who said that it is not fair to the residents since it is the non - residents who create the problem. He indicated that the City is asking them to be part of the team and effort that prevents those people from getting unruly. He added that the City did not change the rules, except to put more responsibility on the landlords and create additional fines to hopefully force deterrents and responsibility. He stated that the same government codes that exist were not changed. Mayor Pro Tem Ridgeway noted that Peter Smith opposed this at the last meeting, but tonight he was more neutral. He stated that Mr. Clarkson's comment about partying on Saturday is irresponsible. He indicated that everyone who lives in the neighborhood should want to maintain the decorum of the neighborhood. He noted that Miss Miller was used as an example, but believed there are many more examples of young people who live there and want to maintain their safety. He asked, if something happened to Miss Miller, how many would look in the mirror and say they were partially responsible. He stated that it is time to mature and noted Volume 56 — Page 148 City of Newport Beach City Council Minutes May 13, 2003 II►117D/:� that this ordinance does not prohibit people from having or attending parties, or drinking alcohol in compliance with the law. Regarding Mr. Withrow's comments, he stated that the theft is a penal code violation, but as a criminal defense attorney he is appalled with the 90 day punishment that they received. He noted that this is beyond the jurisdiction of the City. He asked everyone to take on the responsibility and invited them to the committee meetings. He indicated that the only thing that they might be able to add next year is police officers on horses. Council Member Nichols stated that there were 35 advisements for people to stop their partying and the average fine was $200. He believed that $200 is not out of line. Although the fines will go up this year, he stated that the City is trying to protect the public's rights and that the entire City is spending money to try to do this. He stated that the number of arrests for felonies and misdemeanors was .162% which is one in every thousand that was there. He believed that this was a high rate. Regarding citations, one out of every hundred people were cited for something. He believed that this is out of line. He stated that there has to be more control and the City is picking up a tremendous fee to protect the residents and property. He indicated that there needs to be better behavior and believed that the ordinance is justified. Council Member Webb stated that he used to have a few gatherings when he lived on the peninsula, but he can never remember the congregation he witnesses now. He noted that he has walked West Newport about seven times in the last twelve years and he keeps seeing the crowds grow and be more unruly. He stated that the concerns regarding the fines are being blown out of proportion because he feels there is now a core to the solution. He believed that no one will have to worry about the fines if there is responsible partying and drinking. He hoped that this group can pull together and spread the word that, if there is responsible drinking and partying, there will be no problem and everyone will satisfy their desire to celebrate July 4th. Council Member Heffernan stated that, when he saw the video last year, he asked Council how this affects the City, what the City's role is, and what civic purpose is being served by spending $100,000 and arresting busloads of people. He emphasized that the purpose of the City is to safeguard the residents and the property values, not to constrain their freedoms. He noted that Stanford banned alcohol from its freshman dorms last week and umpires are being attacked on baseball fields. He stated that, if you put 100,000 people in a small area who don't care about Newport Beach, the City has everything to lose. He indicated that he lives in District 7 and they do not have these problems. He stated that Council Member Proctor and Mayor Pro Tem Ridgeway happen to be lawyers and headed the committee to try to constrain this. He stated that, if the City constrains freedoms, it gets sued and more money will need to spent on lawsuits. He added that the City cannot allow police brutality either and asked if the people expect 200 officers to control 100,000 people, stating that he does not like those odds. He realized that this will not please everyone and may not be the way to resolve it, but there are not very many avenues. He believed the ordinance is a best effort attempt. He stated that, when you put 100,000 people in a Volume 56 - Page 149 City of Newport Beach City Council Minutes May 13, 2003 concentrated environment with a lot of alcohol, the public is at risk. He indicated that Council is not trying to take it out on the residents, but is only trying to protect and do the right thing. He noted that, if the City did not try to protect the public, the Chambers would be filled with people asking Council why they didn't do anything to protect them. He believed that adopting the ordinance is the right thing to do. Motion by Mayor Pro Tern Ridgeway to adopt Ordinance No. 2003 -5. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Mayor Bromberg recessed the meeting at 10:45 p.m. and reconvened at 10:50 p.m. with all members of Council in attendance. P. CURRENT BUSINESS 22. CODE AMENDMENT CA 2003 -004 — ABO AMENDMENT (PA 2003- 090) - AMENDS THE ALCOHOLIC BEVERAGE OUTLET (ABO) ORDINANCE (CHAPTER 20.89) TO PROHIBIT OFF -SALE ALCOHOLIC BEVERAGE OUTLETS FROM SELLING OR STORING ALCOHOLIC BEVERAGES OUTSIDE OF THE EXTERIOR WALLS OF THE ESTABLISHMENT. Senior Planner Alford reported that the proposal amends the Alcoholic Beverage Outlet (ABO) ordinance and is intended to prohibit outlets from using large trucks and temporary storage areas from temporarily increasing the floor area devoted to alcohol sales. He requested direction on whether Council wants the ordinance to apply to all establishments in the City all the time or only have the ordinance apply to establishments within the designed Safety Enhancement Zone during the specified time period. Mayor Pro Tem Ridgeway believed that there should be equal protection and it should apply Citywide, noting that this is only for a 26 hour period during July 4th. Council Member Adams stated that there should be a provision to cover special event permits if this is to be imposed all the time. City Attorney Burnham stated that he is not sure if the ordinance has the language to allow Council to exempt special event permit ABOs. He indicated that it is staffs feeling that it is appropriate at this time to select the alternative to apply the regulations only to ABOs within the Safety Enhancement Zone and during the period the designation is effective. He stated that this is when the problem that the Police Department has identified occurs. Mayor Bromberg expressed concern about equal protection and believed that now this would allow people to leave the zone to buy alcohol. Council Member Proctor clarified that this is aimed at storage outside the location. Council Member Nichols noted that large trucks are brought down, parked on the site, and used. He Volume 56 — Page 150 INDEX Ord 2003 -10 PA2003 -090/ Alcoholic Beverage Outlet (ABO) Amendment (68) City of Newport Beach City Council Minutes May 13, 2003 stated that sales should take place from the outlet. Mr. Burnham believed that the solution is to make the provisions effective only during the periods of time a Safety Enhancement Zone has been designated in an area of the City. He stated that the regulations would apply Citywide but only for a limited period when there has been a problem. He added that this will address the Mayor's concern about migrating outside the Safety Enhancement Zone to store alcohol. Mayor Bromberg stated that this also takes care of equal protection issues and days beyond July 4th. Motion by Mavor Pro Tern Ridgeway to introduce Ordinance No. 2003 -10, as amended to make the provisions effective Citywide but only during the period of time that a Safety Enhancement Zone has been designated in an area in the City, and schedule the public hearing and second reading for May 27, 2003. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 23. REFILLING OF VACANCY ON THE GENERAL PLAN ADVISORY COMMITTEE (GPAC). Council Member Proctor reported that former GPAC member, Alan Silcock, has taken ill and wished him the best and a speedy recovery. Motion by Council Member Proctor to approve GPUC's recommendation to appoint Marie Marston to fill the District 2, at -large vacancy on GPAC. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Mayor Bromberg advised people not to give up if they have applied and are on the list. Assistant City Manager Wood announced that they received two more resignations today. Q. MOTION FOR RECONSIDERATION — None. R. ADJOURNMENT — 11:10 p.m. in memory of former Council Member and Mayor Phil Sansone. Volume 56 — Page 151 INDEX GPAC (24) City of Newport Beach City Council Minutes May 13, 2003 The agenda for the Regular Meeting was posted on May 7, 2003, at 2:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 56 - Page 152 INDEX CITY OF NEWPORT BEACH City Council Minutes Special Meeting May 21, 2003 - 8:00 a.m. Present: Heffernan, Ridgeway, Adams, Nichols, Mayor Bromberg Absent: Webb, Proctor (excused) CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION (54956.9(b)(3)(E)). CLOSED SESSION REPORT The City Council met in closed session to discuss a draft Memorandum of Understanding relative to the proposed senior housing project on Lower Bayview Landing (Senior Housing Project) and the view park project on Upper Bayview Landing (View Park). The MOU would have obligated the City to approve certain changes to the View Park concept plans and the Senior Housing site plans that have been submitted to the California Coastal Commission in exchange for commitments by Stop Polluting Our Newport (SPON) and Environmental Resources Foundation (ERF) not to initiate any litigation or administrative challenge to these two projects and support the projects when they come before the Coastal Commission. The City Council unanimously rejected the MOU with Council Members Webb and Proctor absent. PUBLIC COMMENTS —None ADJOURNMENT — 8:45 a.m. The agenda for the Special Meeting was posted on May 19, 2003 at 5:15 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary City Clerk Mayor Volume 56 - Page 153 INDEX