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HomeMy WebLinkAbout01 - Minutes CITY OF NEWPORT BEACH City Council Minutes Special Meeting 2016 Planning Session January 23, 2016 Volume 62 - Page 538 1. WELCOME AND INTRODUCTIONS - 9:00 a.m. Roll Call by City Clerk Present: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Mayor Pro Tem Muldoon, Mayor Dixon Absent: Council Member Petros (Excused) Review Agenda Mayor Dixon provided welcoming remarks, commented on the structure of the meeting, and reviewed the Planning Session Agenda. 2. PUBLIC COMMENTS ON NON-AGENDA ITEMS Dennis Baker requested that Council consider moving forward with televising Planning Commission meetings and archiving them online, dealing with encroachments, the Corona del Mar bypass proposal, and the possibility of starting the next General Plan update as a whole. Tom Collister, Community Emergency Response Team (CERT), distributed a handout to Council, commented on the City’s Emergency Operations Plan , and asked that Council provide the necessary resources and manpower in order to implement the Emergency Operations Plan. George Schroeder requested that Council consider having a library return book drop-off at Marina Park, similar to what is at the OASIS Senior Center. Jim Mosher commented on special meetings, noting that they are to be focused discussions, referenced previous special meetings, and made suggestions regarding the meeting format. Steven Bolduc reported that the Orange County Transportation Authority (OCTA) currently has plans to eliminate all bus service to the Balboa Village in 2016. He asked that Council oppose the proposed changes and that it consider a trolley plan for the area. City Manager Kiff reported that he has been in communication with the OCTA and that the matter will be presented to Council at its February 9, 2016 meeting. 3. FINANCIAL DISCIPLINE Finance Director Matusiewicz provided a PowerPoint presentation to address the budgetary surplus, how it was achieved, the contingency reserve, top revenue generators, the revenue base, projections, the return on sales taxes paid to the City, and discussed transient occupancy tax. Mayor Dixon emphasized the importance of revenues and noted that the City will maintain an active economic base to ensure that property values continue to increase and that retail and hospitality sectors continue to operate in a vital way as they bring revenue into the City. February 9, 2016 Agenda Item No. 1 DR A F T City of Newport Beach Special Meeting - 2016 Planning Session January 23, 2016 Volume 62 - Page 539 City Manager Kiff commented on some of the budget challenges that the City faces and addressed various master plans, as well as the Facilities Planning module, the Harbor Master Plan, Unfunded Pension Liabilities, labor negotiations, and significant events factored into the City’s actuarial. Council Member Selich reported that the differences in the market values of the accrued pension liability, as it has changed over the years, is partly due to the economic recession, as well as the fact that there are more people retiring. City Manager Kiff added that the most significant factor is investment returns, believing that PERS’ assumptions are too generous, going into the future. Finance Director Matusiewicz added that Governor Brown wanted to reduce the target earnings rate by 4% for approximately 30 years. In response to Council Member Peotter’s question, regarding how much increase is expected in Unfunded Pension Liabilities, Finance Director Matusiewicz stated that he does not have those figures yet and that the City traditionally is dependent on the returns which were received June 30, 2014. He reported that staff is working on the models to determine that information. Mayor Dixon noted that the prior Council initiated the “Fresh Start” and the City is on track to have the Unfunded Pension Liabilities paid off in 18 years. However, the City may need to consider accelerating a modified “Fresh Start.” Finance Director Matusiewicz reported that changes in actuarial assumptions are amortized over 20 years. City Manager Kiff noted that it is a moving target and that the City has done a number of things to mitigate the Unfunded Pension Liabilities. He added that new hires are brought in at the pension reform tier, employees are paying more of their share of costs, and the City has reduced its full-time staff by approximately 100 employees. He reported that this also creates a challenge in retaining employees. Finance Director Matusiewicz reported that PERS costs will exceed $37 million and employees will pay $8.6 million which will net the employer costs of $28 million through 2017. He also addressed the PERS default option and the rate of return in the last few years. Finance Director Matusiewicz addressed the budget preparation process and the City’s efforts in maximizing its surplus. In response to Council Member Curry’s question, Finance Director Matusiewicz addressed revenue projections on expected income. City Manager Kiff explained the various projections. He added that revenues are budgeted conservatively and expenses are budgeted liberally. Mayor Dixon commented on identifying areas where the City could continue to drive efficiencies and cost savings. Council Member Curry asked and Finance Director Matusiewicz responded that the PERS item assumes a new “Fresh Start”. In response to Council Member Curry’s questions about “Fresh Start,” City Manager Kiff reported that the City builds the required PERS obligations into on-going expenditures. He noted that the City is financially in good shape, but stressed the need to maintain fiscal discipline, continually manage pension obligations, provide quality public services, keep the City looking nice to maintain and increase property values, and manage public safety costs. He encouraged Council to consider things that are not budgeted and prioritize them, and commented on a policy implemented last year to allocate 50% of the surplus to unfunded pension DR A F T City of Newport Beach Special Meeting - 2016 Planning Session January 23, 2016 Volume 62 - Page 540 obligations and 50% to one-time neighborhood enhancements while continuing to look for ways to reduce expenses and capture more revenue from visitors. In response to Mayor Pro Tem Muldoon’s question, City Manager Kiff explained assumptions in terms of what other surrounding cities are doing. Jim Mosher commented on the Harbor Area Management Plan versus the Harbor Master Plan, and suggested distinguishing them. He addressed revenue sources and asked for confirmation that 80% comes from residential property taxes. Additionally, he commented on the budget not being on the City’s website, employees paying a greater share of the pension costs, asked regarding increases in take-home pay as a result of negotiations and MOUs, and regarding litigation expenses. Virginia Anders-Ellmore commented on improvements in the City’s infrastructure and asked regarding payment of the new Civic Center. It was noted that the Civic Center was cash-funded. Additionally, Ms. Anders-Ellmore asked regarding the ratio of full-time employees, part-time employees, and contractors, and whether the ratio provides maximum savings. City Manager Kiff reported that property taxes are paid by 80% of the residents and 20% by commercial properties. He addressed employee raises, keeping salaries within the rate of inflation, and posting the budget on the City’s website. He addressed payment for the Civic Center, as well as the number of full-time and part-time employees, and reported that the City always looks at the pros and cons of contracting out services. 4. RECESS/RECONVENE Mayor Dixon recessed the meeting at 10:04 a.m. and reconvened the meeting at 10:21 a.m. with all members of the City Council present. 5. REVITALIZING AND RENEWING OUR COMMUNITY Public Works Director Webb utilized a PowerPoint presentation to discuss the Capital Improvement Program (CIP). He reported that the CIP is about 24% of the City budget, reflects Council’s goals and objectives, and involves the Master Plans, resident requests obtained at community meetings, sets priorities, and allocates funds for each. Mayor Dixon reported that the General Fund contributes about $5 million every year. Public Works Director Webb listed other funding programs and sources that contribute to the CIP. He highlighted past, current and future major projects. At Mayor Dixon’s request, Public Works Director Webb reported on the Street Signage project . Jim Mosher asked what constitutes development under the Coastal Act and wondered regarding the procedure to determine what projects need a coastal development permit. Dennis Baker noted that a lot of the CIP projects are paid for by grants and complimented the City for being aggressive in pursuing grants. He commented on the use of permeable pavement versus concrete when replacing alleys and expressed his opinion about the City’s sewer systems. Bernie Svalstad addressed the Corona del Mar Business Improvement District and asked that Council include a placeholder for $50,000 for various improvements in Corona del Mar. DR A F T City of Newport Beach Special Meeting - 2016 Planning Session January 23, 2016 Volume 62 - Page 541 Jeff Herdman commented positively on the priorities being given to infrastructure improvements on Balboa Island. Lee Pearl, President of the Balboa Island Improvement Association, complimented staff for their work in improvements to the Island. He noted that residents are concerned with making improvements to streets and asked for a timeline as to when the work will be done. Additionally, he commented on the Southern California Edison (SCE) overhead system and asked for staff’s help throughout the project. Brian Ouzounian commented on the need to fix the seawall prior to fixing the streets at Balboa Island. He noted the need to study bicycle traffic on the Peninsula and a possible extension to the Wedge. He hoped that Council will discuss the matter in the near future. Additionally, he spoke in opposition to undergrounding utilities on the Island. Bob McCaffrey commented on a prior statement regarding cutting spending and asked regarding the need to improve the Corona del Mar Fire Station and Library. Nancy Skinner noted that every dollar spent should be wisely spent. City Manager Kiff reported that staff will pursue funding for street improvements. Community Development Director Brandt utilized a PowerPoint presentation to discuss major private projects in the City and the status of each. Additionally, she addressed updates to the General Plan in order to make it consistent with current State law. Jack Skinner commented on the current water shortage and expressed concerns with the various projects that will increase demand and the consumption of water. City Manager Kiff stated that the City’s water-conservation standards are being reduced to 21% and noted that the State does factor in increased development and changes in use. He assured that new developments must comply with the City’s Urban Water Management Plan. Jill Golden commented on plans for the Lido Theater and the church. Mayor Dixon reported meeting with the property owners of the theater and reported there will be good news to come for the community. Dennis Baker reported that many of the items included in Measure Y could be done by Council and wondered if Council will take care of those items. Additionally, he stated that there are many General Plan amendments going on and expressed concerns with Planned Community exemptions and spot developments taking place. Community Development Director Brandt addressed Land Development Amendments, the City’s Land Use Map, and policies. She indicated that the policies will be reintroduced as part of the General Plan Update process and include various elements. Jim Mosher commented on the Back Bay Landing project, development occurring in the airport area and determination of the appropriate school district for those residents, and on City height restrictions on private developments. Community Development Director Brandt addressed the steps being pursued relative to the Back Bay Landing project and approval by the Coastal Commission. DR A F T City of Newport Beach Special Meeting - 2016 Planning Session January 23, 2016 Volume 62 - Page 542 In response to Council Member Duffield’s question, Community Development Director Brandt reported that building permit valuations were included in her presentation and addressed increases in property taxes. Finance Director Matusiewicz reiterated that projections include building permit valuations and these will be included in property tax estimates. Mayor Dixon added that many of the projects have development fees connected with them. Community Development Director Brandt addressed public benefit fees associated with many development agreements. 6. PROPOSED 2016 ACTION PLAN Mayor Dixon reviewed the Proposed Action Plan as outlined in the handout. She addressed details of the priorities and the processes going forward. Among these are opportunities for dealing with Unfunded Pension Liabilities, considering a second “Fresh Start,” setting priorities relative to the budget surplus, continuing to seek ways of improving efficiencies in emergency services and community development, increasing transparency, addressing seawalls, dealing with the drought, Lido Marina Village, Balboa Village, Mariners Mile, the Balboa Village Theater project, landscape and public improvements and public safety, the West Newport Community Center, competitive swimming pools, and helping small businesses. She stated that she is looking forward to working with Council and the community to implement some of the ideas. Council Member Selich excused himself from the meeting at 11:39 a.m. due to a prior commitment. Council Member Curry commended the Mayor for identifying objectives and noted the need to focus on fiscal discipline. He commended staff for its work and commented on the difficult decisions that Council must make. Council Member Duffield commended former Mayor Selich and Mayor Dixon and expressed his support of her and her objectives. Council Member Peotter commented positively on the Mayor’s ideas and commended staff for its support and work. Jim Mosher commended Mayor Dixon for her work, energy, and dedication, and commented on the role of the Mayor as stated in the City Charter. He stated the Mayor has made excellent recommendations, but they should carry no more weight than recommendations from other Council Members. He addressed previous goal setting sessions and a case where a former Mayor changed the goals. He commented on government representing citizens properly and responsibly, and on private/public partnerships. George Schroeder believed that the meeting was well-publicized and stated that those residents who wanted to be here are in attendance. He commented positively on the meeting and thanked Council for its work. Nancy Skinner commended the City on its financial plans. She commented on water quality, the sewer system, water fees, and seawalls. She hoped that the City will strive hard to maintain the character of Newport Beach. Virginia Anders-Ellmore thanked the City for this meeting and suggested increasing noticing of it in the future. She commented on the importance of Building Codes in terms of public safety DR A F T City of Newport Beach Special Meeting - 2016 Planning Session January 23, 2016 Volume 62 - Page 543 and hoped that these will be maintained. Additionally, she commented on the sewer system and maintaining it. 7. CONCLUDING COMMENTS AND ADJOURNMENT Council Member Curry noted that today had a good, robust agenda and discussed public safety and crime, and the need to be prepared going forward. Mayor Dixon thanked everyone for attending, as well as staff for their hard work. The meeting adjourned at 11:55 a.m. The agenda for the Special Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on January 20, 2015, at 2:30 p.m. ______________________________________________ Recording Secretary ______________________________________________ Mayor _____________________________________ City Clerk DR A F T CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 544 I. ROLL CALL - 5:00 p.m. Present: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar – None SS2. Short Term Rental (STLPs, Airbnb, VRBO) – Update and Summary of Uses in Newport Beach Community Development Director Brandt provided a PowerPoint presentation which included an overview of short-term lodging and how it is permitted in the City, a brief history of the matter, benefits, City regulations, short-term rentals in the R-1 Zone, properties grandfathered in, where short-term lodging is permitted, the permit process, permit revenue, location of active short-term lodging permits, percentage of short-term rentals to total housing units, revenue trends, concerns and challenges, adverse impacts and professional management of short-term rentals. She listed online companies getting into the short-term rental business, concerns with the internet effect, home-sharing, the importance of enforcement, practices by other Orange County coastal cities, and next steps. Council Member Selich commented on the concept of house-swapping and asked how the City would handle same. Business License Supervisor Navarrete indicated that, at this time, since the concept does not involve changing money and the City Code does not address it, it is not being regulated. Craig Batley, Burr White Realty, provided a PowerPoint presentation on rental business on the Peninsula. He addressed existing conditions, short-term permits in R-1 Zones, Balboa Island zoning, and provided a history of short-term lodging in the City. Gary Sherwin, President of Newport Beach & Company, commented on the increase in the short-term lodging industry, specifically Airbnb. He noted the need to create a sense of fairness among all lodging providers and believed that the City needs to take a close look at this matter, as the City is foregoing a significant amount of revenue. Jim Mosher asked about the permit application process and whether it is included on the City’s website. Additionally, he wondered how it can be determined that a person offering short-term lodging has a valid permit. Denys Oberman, Central Newport Beach Community Association, asked that Council not draw any conclusions at this time, but direct staff to gather additional information. She noted that the Association acknowledges the City’s need for Transient Occupancy Tax (TOT) revenue but requested that it not be at the expense of the quality of life for residents. She encouraged Council to find a balanced solution between vacation rentals and the sustainable community. She stated that there is a high concentration of short-term lodging permits on the Peninsula DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 545 that puts a burden on the community, as well as on the City. She asked that Council not allow any more units onto the Balboa Peninsula. Todd Prince shared his experience with short-term lodging, thanked City staff, stated that the issue involves bad operators, and hoped that Council can develop regulations to penalize them while encouraging good operators. Don Abrams, Abrams Coastal Properties, thanked staff for the thorough report and stated that the vacation-rental model works well on Balboa Island. He reported that his tenants are provided with a list of rules and regulations to follow and that they typically comply and take good care of the properties. He expressed concerns with Airbnb and offered to serve on a committee to study the matter. In response to Council questions, Mr. Abrams provided an example of his rules and regulations. He also reported on how he advertises for his properties. Regarding impacts to his business, he indicated that he is unable to quantify those at this time. Community Development Director Brandt noted that the City tracks TOT payments for those who have permits. Mr. Abrams reported that the problem is with people who do not have a permit. Business License Supervisor Navarrete reported that, if a homeowner chooses to hire an agent and do their own advertising, the agent is responsible to remit the TOT on a quarterly basis and the owner receives a reporting form once a year. George Schroeder expressed concerns with Airbnb, encouraged Council to consider how it can receive TOT, and commented on problems with short-term rentals. Connie Adnoff, Beachview Realty, offered to work with the City to study this matter further. She observed there are increased problems with long-term rentals, noting that, if there are problems with short-term guests, they can be kicked out immediately. She referenced a list of her rules provided to renters and reiterated issues with long-term renters. Art White, White Sail Realty, agreed with Mr. Batley’s and Ms. Adnoff’s comments and recommended that Council review Mr. Batley’s presentation. He stated that people that go around the system and are undercutting the City’s revenue and legitimate business owners. He referenced a luncheon hosted by Airbnb where they expressed their intention of cooperating with the various cities, as well as working closely with vacation rental managers. Additionally, he suggested ways in which enforcement could be facilitated. Council Member Petros noted that he was impressed by the question of fairness and equity in the discussion and commented on leveling the playing field for all hospitality and vacation rentals throughout the City. He hoped that Council will tap into the professionals in the City and consider forming a committee, comprised of vacation rental associations and other professionals to obtain good, localized knowledge regarding the matter. Council Member Peotter asked staff to explain what Airbnb is being required to do by the City of San Francisco. City Manager Kiff reported that Airbnb was able to reach an agreement with San Francisco to collect the TOT for their rentals. City Attorney Harp added they are collecting a 14% tax for San Francisco. They have shown willingness to collect the tax, on behalf of cities, in return for cities expanding operating areas. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 546 Business License Supervisor Navarrete added that, at this time, Airbnb does not release property addresses unless there is litigation. She reported that the State of New York sued Airbnb for their property listing and they were granted the addresses for a minimal amount of time. Community Development Director Brandt added that the City does not have an estimate of what its lost revenues might be from the online services. City Manager Kiff asked regarding the time period represented by the $220,000 in TOTs collected and Business License Supervisor Navarrete reported that it is for a one-year period. Council Member Peotter estimated that uncollected TOT may be up to $1 million. In response to his question, Business License Supervisor Navarrete reported that the permit is a $150 one- time fee. Council Member Peotter indicated that, while he does not want to give up information or expand on the areas permitted for short-term lodging, he would like to have a level playing field. In response to Council Member Selich’s question regarding Airbnb’s willingness to respect the City’s existing ordnances, City Manager Kiff emphasized that they have a willingness to collect TOT, but only if the City opens up more of the controlled areas for short-term lodging. Finance Director Matusiewicz added that Airbnb will agree to collect the TOT, but will not validate that the rental is in a valid zone. They will not enforce the TOT, but will enter into a voluntary collection for the City. City Attorney Harp emphasized and reiterated that Airbnb is not willing to collect the TOT unless the City is willing to loosen regulations. Assistant City Attorney Torres added that negotiation with Airbnb is a difficult proposition as they contend it is the City’s responsibility to enforce its own laws. City Attorney Harp added that some jurisdictions have been successful at getting information, but only by initiating litigation. Council Member Selich commented on the City of Santa Monica and believed that Council should consider whether it would be worth the effort, as some cities are spending more in trying to collect the TOT than the actual amount of TOT they are collecting. Mayor Pro Tem Muldoon referenced next steps and noted his response to each step in the presentation. Council Member Curry stated that the City needs to be part of the solution and suggested working with local property management professionals to work collaboratively with Airbnb and others to find a solution to minimize impacts on neighborhoods while maximizing property values and individual property rights. He stated the need to move forward with the matter, including home-sharing. In response to Council Member Duffield’s question, City Manager Kiff indicated that the disparity between charges by property management firms and by property owners is at least 10%. It was also noted that online sites charge annual subscription fees. Council Member Peotter stated that he would be in favor of negotiating a deal with Airbnb for them to collect the TOT. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 547 Mayor Dixon understood that Airbnb is under no obligation to turn over TOT to the City. Assistant City Attorney Torres noted the City has a broad definition of an “operator” and reported that Airbnb is unique in that they facilitate the exchange. Under the City’s definition, Airbnb is an operator and are required to collect the TOT. City Attorney Harp reported that the City will continue negotiating with Airbnb. Council Member Petros noted the importance of the TOT, but stated that it is only one issue. He encouraged Council to take advantage of the expertise in the community, find out what defines a “level playing field,” and return with recommendations for Council’s consideration. Council Member Selich asked Council Member Peotter to clarify his suggestion. Council Member Peotter reported that for anyone that does an Airbnb deal in the City, Airbnb would collect the TOT without concern as to whether they are legally permitted or not and without exchange of information. Mayor Dixon suggested that staff conduct a workshop with the community to study the matter further and develop recommendations for Council’s consideration. City Manager Kiff suggested returning to Council with recommendations in approximately six months. He added that a critical discussion will include whether or not to open new areas for short-term lodging. Council Member Peotter believed that opening up new areas should be off the table, but that consideration should be given to possible inconsistencies. Mayor Dixon noted consensus to not expand permitted areas and cap the number of short-term vacation rentals. Council Member Curry added the need for fairness. Council Member Peotter reported that there are some inconsistencies where there are R-1 and R-2 Zones that are adjacent and that expanding the R-1 Zone should be considered. Council Member Selich expressed his support. III. PUBLIC COMMENTS Jim Mosher commented on Closed Session Item A, noting that the Brown Act does not require Council to do performance evaluations in Closed Session. He stated that the Costa Mesa Sanitary District reviews in an open, public meeting and expressed the opinion that the City should do the same. Additionally, he noted they are public employees and believed that Council should consider the public’s opinion as to the performance of these employees. City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 548 IV. CLOSED SESSION – 6:36 p.m. A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code § 54957 (b)(1)) Title: Dave Kiff, City Manager Aaron C. Harp, City Attorney Leilani Brown, City Clerk B. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code § 54956.9(a), (d)(1)): 1 matter Deem, Paul v. State of California, City of Newport Beach, et al. Orange County Superior Court Case No. 30-2014-00745361 V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon VIII. CLOSED SESSION REPORT City Attorney Harp announced that, regarding Item IV.B, Mayor Pro Tem Muldoon and Council Member Petros recused themselves due to a potential conflict of interest related to their sources of income. IX. PLEDGE OF ALLEGIANCE – Mayor Pro Tem Muldoon X. INVOCATION – Dr. Jim Turrell, Center for Spiritual Living Newport Mesa XI. NOTICE TO THE PUBLIC XII. CITY COUNCIL ANNOUNCEMENTS (NON-DISCUSSION ITEMS) Council Member Curry reported that coyote issues will be considered in the near future and stated the need for the City to have a robust strategy with plenty of opportunity for community input. Mayor Pro Tem Muldoon reported attending the U.S. Conference of Mayors where he learned about best practices for cities. Mayor Dixon announced that Item No. 20 (Setting the Fair Market Value Rent for Moorings Located upon Tidelands in Newport Harbor) will be heard immediately after the Consent Calendar. She requested that staff prepare a report for the next meeting on the OCTA proposal to revise bus routes in Newport Beach and prepare the necessary communication to the OCTA prior to their February meeting. Additionally, she asked that staff add to the next agenda, consideration of televising Planning Commission meetings. Mayor Dixon announced a community forum on February 25, 2016 for Women in Newport Networking (WINN) from 5:30 p.m. to 7:30 p.m. in the Civic Center DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 549 Community Room. She commented on the recent 2016 Planning Session at Marina Park last Saturday and thanked residents and staff for their participation and support. XIII. PUBLIC COMMENTS ON CONSENT CALENDAR Jim Mosher commented on Item No. 8 (Corona del Mar Entry Improvements) and noted that the referenced drawings and specifications are not in the staff report nor available to the public. Public Works Director Webb reported that they are typically available at the Public Works counter and tha t projects are publicly bid and advertised. XIV. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the January 12, 2016 Study Session and Regular Meeting [100-2015] Waive reading of subject minutes, approve as amended, and order filed. Mayor Pro Tem Muldoon abstained on this Item. 2. Reading of Ordinances Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. ORDINANCE FOR ADOPTION 3. Water Efficient Landscape Ordinance - Second Reading [100-2015] Conduct second reading and adopt Ordinance No. 2015-34, An Ordinance of the City Council of the City of Newport Beach, California, Amending Chapter 14.17 of Title 14 of the Newport Beach Municipal Code in its Entirety Pertaining to Regulations Required for Water-Efficient Landscaping (PA2015-169). RESOLUTIONS FOR ADOPTION 4. Resolution Establishing Surfing Regulations to Protect Users of Designated Surfing Areas and Designating Surfing Areas [100-2015] Adopt Resolution No. 2016-10, A Resolution of the City Council of the City of Newport Beach, California, Establishing Surfing Regulations to Protect Users of Designated Surfing Areas, Designating Surfing Areas, and Rescinding Resolution No. 95-116. 7. Authorize Submittal of Orange County Transportation Authority Grant Application for the Balboa Peninsula Shuttle Program [100-2015] a) Adopt Resolution No. 2016-15, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Submittal of Balboa Peninsula Shuttle Program to the Orange County Transportation Authority for Funding Under Project V Community Based Transit/Circulators; and b) Authorize the City Manager, or his designee, to sign grant documents. CONTRACTS AND AGREEMENTS 8. Corona del Mar Entry Improvements - Award of Contract No. 6382 (Project 15L12) [38/100-2015] a) Approve the project drawings and specifications; DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 550 b) Award Contract No. 6382 to All American Asphalt, for the Total Bid Price of $497,497.00, and authorize the Mayor and the City Clerk to execute the contract; c) Encumber a contingency allocation of $50,000.00 (10%) to cover the cost of unforeseen work not included in the original contract; and d) Approve Budget Amendment No. 16BA-028 appropriating $175,000.00 from the General Fund unappropriated balance to Account No. 01001927-980000-15L12 for Corona del Mar Entry Improvements. 9. Authorize the City Manager to Approve Term Extensions for On-call Professional Service Agreements (Albert Grover & Associates - C-5809, DMS Consultants - C-5750, Civiltec - C-5749, Walden & Associates - C-5801, VA Consulting/Stantec - C-5757, Harris & Associates - C-5840, Penco - C-5820, American Geotechnical - C-5655, Harrington Geotechnical - C-5658, GMU Geotechnical - C-5659, Interwest Consulting - C-5701, Guida Surveying - C-5679, Coast Surveying - C-5702, Willdan Engineering - C-5768, Transportation Studies - C-5771, TCLA Inc. - C-5691) [38/100-2015] Authorize the City Manager to execute agreement amendments to extend the term by up to six (6) months on various on-call professional service agreements as approved to form by the City Attorney. 11. Request to Retain Existing Private Improvements within the Public Right-of-Way at 1200 Dolphin Terrace (C-6435) [38/100-2015] a) Waive City Council Policy L-6, Private Encroachments in the Public Rights-of-Way, to retain a 4-foot retaining wall to encroach into the Dolphin Terrace right-of-way, contingent upon all conditions of the Encroachment Permit process being met; and b) Direct staff to enter into an Encroachment Agreement with Owners and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. MISCELLANEOUS 12. Planning Commission Agenda for the January 21, 2016 Meeting [100-2015] Receive and file. 13. Funding for Marina Management at Marina Park [100-2015] Approve Budget Amendment No. 16BA-027 unappropriating $45,000 in General Funds from Public Works Administration Account No. 01080005-811008 and returning it to the fund balance; and appropriating $122,400 in Tidelands Funds to Public Works Harbor Resources Account No. 10080802-811044 for marina management at Marina Park. 14. Dover Drive and Westcliff Drive Street Rehabilitation Increased Contingency Authority and Budget Amendment (15R15) [100-2015] a) Establish an amount up to $566,525 (17%) to cover the cost of unforeseen work not included in the original contract; b) Approve Budget Amendment No. 16BA-030, unappropriating $58,000 back to the Contributions Fund balance from Account 13501-980000-15R15 (Dover Drive and Westcliff Drive Street Rehabilitation Project Contributions Fund) and appropriating $81,035 from the General Fund balance to Account No. 01001927-980000-15R15 (Dover Drive and Westcliff Drive Street Rehabilitation Project General Fund) for a General Fund net increase of $23,035 to this project; and c) Revenue receipted in 13501-431075 from the Orange County Sanitation District in the amount of $58,000 will be transferred to 01080801-521380 (City Staff Service Fee General Fund). DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 551 15. Appointment of a New Balboa Village Advisory Committee Member to Represent ExplorOcean [100-2015] Appoint ExplorOcean’s CEO Linda Mayer to BVAC to fill the unexpired balance of Tom Pollack’s term, which expires on December 31, 2016. 16. Update on Water Use and Conservation Efforts December 2015 [100-2015] Receive and file. 17. Summary Vacation of Existing Easement for Roadway Purposes at 20392, 20402, and 20412 Birch Street and Subsequent Approval of Parcel Map Number 2014-171 a) Adopt Resolution No. 2016-19, A Resolution of the City Council of the City of Newport Beach, California, Ordering the Summary Vacation of an Existing 60-Foot Wide Easement for Roadway Purposes at 20392, 20402, and 20412 Birch Street (Lots 125 and Portions of Lots 99 and 126), Directing the City Clerk to Record the Same with the County Recorder’s Office and Approve Parcel Map Number 2014-171; b) Approve the summary vacation of easement for roadway purposes at 20392, 20402, and 20412 Birch Street and subsequently approve Parcel Map Number 2014-171; and c) Direct staff to process Parcel Map Number 2014-171 in order for the owner to record the map with the Orange County Recorder. Motion by Mayor Pro Tem Muldoon, seconded by Council Member Selich, to approve the Consent Calendar, except for the items removed (5, 6 and 10); to include Resolution No. 2016-19 (Item No. 17), and noting the abstention on Item No. 1 by Mayor Pro Tem Muldoon. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon XV. ITEMS REMOVED FROM THE CONSENT CALENDAR Items 5, 6 and 10 were discussed and voted under one action. 5. Memorandum of Understanding with the Newport Beach Firefighter's Association (C-2060) [38/100-2015] a) Adopt Resolution No. 2016-11, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach Firefighters Association, for the period January 1, 2015 through December 31, 2018; b) Adopt Resolution No. 2016-12, A Resolution of the City Council of the City of Newport Beach, California, to Modify the Paying and Reporting of the Value of the Employer Paid Member Contribution to the California Public Employees Retirement System (CALPERS) for Certain Miscellaneous Employees Represented by the Newport Beach Firefighters Association , from 2.42% to 0% for non-safety Miscellaneous members; and c) Adopt Budget Amendment No. 16BA-025 in the amount of $669,752 from the General Fund unappropriated surplus fund balance. 6. Approval of the Key and Management Compensation Plan and Adoption of the Memorandum of Understanding with the Newport Beach Fire Management Association (C-2946) [38/100-2015] a) Adopt Resolution No. 2016-13, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Key and Management Compensation Plan , for the period July 1, 2015 through December 31, 2018; DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 552 b) Adopt Resolution No. 2016-14, A Resolution of the City Council of the City of Newport Beach, California, Adopting a Memorandum of Understanding between the City of Newport Beach and the Newport Beach Fire Management Association, for the period July 1, 2014 through June 30, 2018; and c) Approve Budget Amendment No. 16BA-026 in the amount of $376,920 from the General Fund unappropriated surplus fund balance. 10. Tentative Agreement with the Newport Beach Employees League (C-2065) [38/100-2015] Receive and consider the Tentative Agreement between the City of Newport Beach and the Newport Beach Employees League. Council Member Peotter reported that the City has done a good job with personnel and union agreements, and noted that employees are paying a large percentage of their own pension. He reported that, for that reason, he is in support of the agreements. He stated that the City still has an approximately $253 million unfunded liability on pensions. C alPERS did not realize the expected ROI for the year ending 2015 and, therefore, that will net to the City an additional $30 million to $50 million of unfunded pension liabilities. He added that the City is doing what it can, under the law, but has a long way to go. He commended the various groups and Council, but noted that more solutions need to be generated. Motion by Council Member Peotter, seconded by Council Member Curry , to approve Item Nos. 5, 6 and 10. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon XVI. PUBLIC COMMENTS ON NON-AGENDA ITEMS - None XVII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None XIX. CURRENT BUSINESS Item No. 20 was taken out of order and heard at this time. 20. Setting the Fair Market Value Rent for Moorings Located upon Tidelands in Newport Harbor [100-2015] Harbor Resources Manager Miller addressed background, responses and recommendations received from the State Lands Commission, hiring consultant Jim Netzer to update an appraisal done 10-years ago, additional responses from the State Lands Commission, and distribution of a letter from Mr. Netzer addressing those responses. Jim Netzer, Netzer and Associates, summarized the points he listed in his letter to Council. He commented on his experience in and out of the City and addressed adjustments for dinghy storage . Harbor Resources Manager Miller reported that Mr. Netzer found that for an on-shore mooring, the range for a fair market value would be between $32 and $38 per linear foot of off-shore mooring and on-shore moorings would be half that rate. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 553 In response to Mayor Pro Tem Muldoon’s question, Mr. Netzer reported that adjustme nts for dinghy storage does not change his analysis for the moorings. He addressed other comparable areas and explained dinghy storage would be a component taken into consideration. Additionally, he listed other jurisdictions that he considered in the analysis. In response to Council Member Peotter’s question, Mr. Netzer stated that the State Lands Commission has never commented on his appraisals before. Council Member Duffield pointed out that dinghy storage is not available for a majority of the moorings. Carter Ford, Newport Mooring Association Board, addressed the composition of the Board and thanked the City for its work on this matter. On behalf of the Board, he requested that Council move forward at this time and expressed support of the proposed rates. Michael Lawler agreed with Mr. Ford and urged Council to move this matter forward tonight. He noted that the Harbor Commission’s recommendations were $25 per linear foot, not $35 per linear foot, and urged Council to consider the lower rate. Ross Van Helfrich asked for confirmation that only the structure of the dock was to be rented, not the used space, as the water is public space. Harbor Resources Manager Miller responded affirmatively. Don Botenza, spoke in support of a lower rate, but urged Council to make a decision tonight. Patricia Newton, representing the Newport Mooring Association, reported that the current fees are not an appropriate solution for Harbor budget concerns. She urged Council to lower the fees to a more-reasonable level and asked that Council adopt the Resolution as recommended by staff. Paul Bahan, Newport Mooring Association, agreed with the previously proposed rate of $25.43 per linear foot because it is consistent with alternative methods of valuation and was based on a footprint that is favorable to the tidelands. However, he agreed that, while the proposed $35 per linear foot is at the high end, it is a fair resolution. Catherine Wolcott, Newport Mooring Association, asked Council to approve the Resolution. She commented on the recommendations of the State Lands Commission and urged Council to act on this matter tonight. Brian Ouzounian referenced his communications with Council and with the State Lands Commission. He reported that he pays 50¢ per linear foot for his dock and $10 per linear foot for his mooring, and emphasized the disparity. He proposed that Council waive the 2016 mooring bill and investigate this matter further. Scott Karlin, Newport Mooring Association, reported that he authored the comparable report provided to Council last year. He thanked Mr. Netzer for his work and spoke in support of his report. Mark Sites commented on the previous process of determining a rate of $57 per linear foot and the various studies and appraisals. Gary Hill thanked Council and the Harbor Commission for its work. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 554 Motion by Council Member Petros, seconded by Mayor Pro Tem Muldoon, to adopt Resolution No. 2016-17, A Resolution of the City Council of the City of Newport Beach, California, Setting the Fair Market Value Rent for Moorings Located upon Tidelands in Newport Harbor , effective for the mooring permits issued in 2016. Council Members Selich and Curry spoke in support of respecting the request of State Lands Commission and not take action until they have reviewed the appraisal. Substitute motion by Council Member Selich, seconded by Council Member Curry, to continue the item to allow the State Lands Commission time to review the appraisal. Council Member Curry commented on the length of time the City went without adjusting mooring rates and noted that it should not wait as long in the future. He expressed concerns that the reduced rates represent a $500,000 revenue cut to the City at a time when the Tidelands Fund needs money for seawall improvements and other important improvements in the Harbor. He addressed the State Lands Commission response time and spoke in support of Council Member Selich’s substitute motion. Mayor Pro Tem Muldoon spoke in support of the proposed rate of $35 per linear foot and in opposition to the substitute motion. Council Member Duffield noted that amenities are lacking in connection to moorings. He believed that only when those types of amenities are offered can the City justify raising mooring rates. Council Member Curry noted that, as previously considered, the rates maintained people’s rights to sell their moorings, adding that was the most important thing to many. In response to Council Member Peotter’s question, Assistant City Attorney Torres commented on the State Lands Commission’s role in this matter and addressed the process if the City were to be found in violation. He noted that they do not object to the City’s proposed rates but raised questions regarding the appraisal. The substitute motion failed by the following roll call vote: Ayes: Council Member Selich, Council Member Curry Nays: Council Member Peotter, Council Member Duffield, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Council Member Peotter offered an amendment to eliminate the CPI adjustment and replace it with a Council review. As the maker of the original motion, Council Member Petros stated that he would not accept the amendment. Substitute motion by Council Member Peotter to eliminate the CPI adjustment and replace it with a Council review. The substitute motion failed for lack of a second. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Nays: Council Member Selich, Council Member Curry DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 555 XVIII. PUBLIC HEARINGS The meeting continued as per the agenda at this time. 18. Issuance of Multi-Family Housing Revenue Bonds for the Uptown Newport Project by the California Statewide Communities Development Authority to TPG/TSG Venture I Acquisition, LLC [100-2015] Finance Director Dan Matusiewicz provided the staff report. Mayor Dixon opened the public hearing. Jim Mosher wondered why the public needs to be involved at all. He expressed concerns that the people will have to pay more taxes when certain people do not pay their fair share. He alleged that the City is being asked to be complicit in a tax-evasion scheme. Hearing no further testimony, Mayor Dixon closed the public hearing. Motion by Council Member Curry, seconded by Council Member Selich, to adopt Resolution No. 2016-16, A Resolution of the City Council of the City of Newport Beach, California, Approving the Issuance by the California Statewide Communities Development Authority of Multifamily Housing Revenue Bonds for the Uptown Newport I Apartments and Uptown Newport II Apartments. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon 19. Adoption of Sewer Rate Adjustment [100-2015] Municipal Operations Director Murdoch provided a brief background, discussed the consultant conducting the study, prior consideration by Council, sewer rates, the Sewer Master Plan, outsourcing specific services, consideration by the Finance Committee, and recommendations. He commented on the Proposition 218 notice and reported on the components of the proposed sewer rate, including a variable and fixed fee, and noted the availability of details on the rates. Mayor Dixon stated that she understands the angst of many relative to the proposed increase in sewer rates, but noted the importance of keeping the enterprise fund that supports the City’s water-waste system solvent. She stated her intention to want to give some of the General Fund surplus back to the people if there is not a majority rate protest, and to reduce any hardship that the rate increase may bring to some people. She indicated that this would be done by off-setting the three years of the sewer rate increase with a one-time credit to reduce the overall Municipal Service bill for one specific month. This would be approximately $55 to $60 per home. Mayor Dixon opened the public hearing. Bob McCaffrey, Balboa Island resident, took issue that prior Councils did not address this issue, believed that the City was not taking care of it infrastructure, and took issue with proposing a new West Newport Community Center, which will be used by Costa Mesa residents. He agreed with Mayor Dixon in terms of the City spending no more than needed, suggested that the City not build the proposed Community Center, and that the City go back to basics. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 556 George Schroeder believed residents understand that there are costs related to maintaining the City’s infrastructure, expressed support of the item, noted that many are not in support of building a new Community Center on Superior, and offered an alternate location across from Banning Ranch. Jim Mosher reported that the sewers in his area are part of the Costa Mesa Sanitary District and commented on their Proposition 218 exercise several years ago, noting that their rates are lower than what the City is proposing for a system that is almost the same size. He questioned the current process. Barbara Stoken expressed concern that the sewer rates will double in four years. Hearing no further testimony, Mayor Dixon closed the public hearing. City Clerk Brown reported that 27 protests were received in opposition to the proposed sewer rate adjustment, of which, 26 were from property owners and one was from a non-property owner. In response to Council Member Peotter’s question, Municipal Operations Director Murdoch addressed the connection fee and the analysis of actual costs under the fixed portion of the fees. Additionally, he clarified the proposed rebate. City Manager Kiff added that the rebate concept would be to apply the rebate to the General Fund surplus all in one month. Council Member Curry expressed his surprise at the Mayor’s proposal since, at the recent goal setting session, Mayor Dixon stated that her first objective was fiscal restraint and responsibility. He indicated that the proposal would take $1.7 million out of the General Fund and give it away. He added that, at the same goal setting session, the Mayor spoke about having the Finance Committee as a tool to vet the various proposals; however, they have not vetted the idea of a rebate. Additionally, he referenced her comments regarding General Fund policies and believed that the proposal to spend the surplus is not fiscally responsible. In response to Council Member Curry’s question, City Manager Kiff reported that the rebate will go only to people who pay sewer fees. Council Member Curry expressed concerns that Council is giving away money over time to very special interests and stated that the budget deficit will impact General Services, Public Safety, and City facilities. He addressed that creation of structural deficits. He noted the need to be responsible stewards and stated he will not support the Mayor’s motion for a rebate. Mayor Pro Tem Muldoon expressed his support to give money back to the people, noting it is not the City’s money. He indicated that he will not support a rate increase, but will support the rebate. Council Member Selich concurred with Council Member Curry’s comments , believing that the rebate is an irresponsible idea and that the City should not comingle General Fund money with Enterprise Fund money. He indicated that he cannot support the motion. Council Member Peotter commented on prior Building Permit rebates and spending in connection with fire rings, the bunny structures, and the Civic Center. City Attorney Harp reported that there is nothing illegal about using the General Fund for the rebates and added that this is more of a policy decision. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 557 Motion by Mayor Dixon, seconded by Council Member Petros, to adopt Resolution No. 2016-20, A Resolution of the City Council of the City of Newport Beach, California, authorizing a One-Time Rebate to Residential Customers for a Portion of the Monthly Sewer Service and Use Charges Authorized by Newport Beach Municipal Code Section 1.24.065 upon the Effective Date of Ordinance No. 2016-1. The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Nays: Council Member Curry, Council Member Selich Council Member Curry noted that the most irresponsible vote would be for someone to vote for the rebate and not vote for the proposed rate increase. Mayor Pro Tem Muldoon commented in opposition to the motion. Motion by Council Member Curry, seconded by Council Member Petros , to a) direct the City Clerk to tabulate the results of the protests received from property owners and customers and announce the findings; b) in the absence of a majority of protests, adopt the proposed rates and structure; and c) introduce Ordinance No. 2016-1, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 14.24.065 of Title 14 of the Newport Beach Municipal Code Pertaining to Sewer Use Charge, and pass to second reading on February 9, 2016 and d) adopt Resolution No. 2015-21, A Resolution of the City Council of the City of Newport Beach, California, Adopting New Sewer Service and Use and Consumption Rates Pursuant to Newport Beach Municipal Code Section 14.24.065. The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Curry, Council Member Petros, Mayor Dixon Nays: Council Member Peotter, Council Member Duffield, Mayor Pro Tem Muldoon XIX. CURRENT BUSINESS 21. Newport Boulevard Widening from 30th Street to Via Lido - Award of Contract No. 4881 (Project 15R17) [38/100-2015] Jim Mosher noted that the project plans and specifications were not available in the staff report and that there is no information that these documents are available at the Public Works counter. Additionally, he questioned the validity of the previous action since it was listed on the agenda. Motion by Council Member Petros , seconded by Council Member Curry , to a) approve the project plans and specifications; b) award Contract No. 4881 to GMC Engineering, Inc. for the total bid amount of $3,967,186.45 and authorize the Mayor and City Clerk to execute the contract; c) encumber a contingency allocation of $400,000.00 (approximately 10% of Total Bid) to cover the cost of unforeseen quantities and work not included in the original contract; and d) approve Budget Amendment No. 16BA-29 appropriating $880,000 from the General Fund unappropriated fund balance to Newport Boulevard Widening Project, Account No. 01001927-980000-15R17, to augment funding budgeted for this work. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 558 The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon 22. Amendment of Newport Beach Municipal Code Chapter 5.15, Approval and Award of Official Police Tow Contracts (G&W Towing - C-3203, MetroPro Towing - C-3189), and Approval of Revised Tow Rates Schedule [38/100-2015] City Manager Kiff reported that Council considered this matter two weeks ago at a Study Session and addressed recommendations. City Attorney Harp reported that staff distributed a revised Ordinance this evening which leaves the term of the agreement up to Council’s determination. He added that if Council wants to change the terms, the contract would need to be amended. Roger McGregor, McGregor Yacht Corporation, reported that he has about five acres of property that surrounds Southside Towing and believed that they are a well-managed, secured operation. Alex Mohamed, Southside Towing, reported that two weeks ago, he spoke regarding space being an issue and that Southside towing has a drafted lease to lease 6,000 square feet of Mr. McGregor’s facility. He commented on the time he has worked on this matter, stated his desire to compete for the contract, and asked that Council consider his company as a provider. In response to Council Member Peotter’s question, City Attorney Harp stated that there are many issues that the City would need to review and that the City has not seen the lease agreement. He emphasized that Southside Towing was determined not to be qualified based on the fact that they did not have the required amount of space. He stated that, if Council chooses, the matter could be continued to reopen and review the matter. Steve Baric, General Counsel for Southside Towing, addressed the process and reported that it is unique based on the fact that, prior to the Study Session, Southside Towing did not know that two of its competitors would be working together to allow one of them to meet the requirements of the City ordinance. Had they been aware, they would have provided Council with the referenced lease. He noted that now, they comply with the City ordinance, as well as all of the zoning requirements in order to compete. he asked that Southside be allowed to compete for this contract. Jim Mosher referenced the subject Ordinance relative to an escalator clause in terms of “not seasonally adjusted” and language referring to the Los Angeles/Long Beach area CPI , and suggested the need to clarify the language so that the first reading is done properly. Sean Ostriker referenced a comment by Council Member Curry at the last Study Session relative to being influenced by campaign contributions and noted that he accepted campaign contributions from MetroPro during his run for State Assembly. Jody Campbell, MetroPro Towing, noted that the Police Department took a lot of time to vet this item and commented on their proposal and the identification of three locations for storage. Additionally, he noted that before submitting an RFP, they ensure that they meet the minimum requirements or they do not submit a proposal. He urged Council to approve staff’s recommendations. DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 559 Wayne Miller, G&W Towing, urged Council to approve staff’s recomm endations. He thanked the Police Department and staff and commented on the RFP process. He referenced the prior Study Session and addressed their compliance with the minimum requirements in the RFP. He reported that a minimum term of five years is very important to them. Mayor Pro Tem Muldoon commented on the RFP process and his belief in competition. He asked regarding the possibility of continuing this matter to the next Council meeting to see if Southside Towing is able to qualify. Council Member Curry commented on the RFP process and suggested accepting staff’s recommendations. Motion by Council Member Curry, seconded by Council Member Selich, to a) introduce Ordinance No. 2016-2, An Ordinance of the City Council of the City of Newport Beach, California, Amending Newport Beach Municipal Code Chapter 5.15 Relating to Official Tow Services , and pass to second reading on February 9, 2016; b) adopt Resolution No. 2016-18, A Resolution of the City Council of the City of Newport Beach, California, Adding the Franchise Tow Fee to the City of Newport Beach’s Fee Schedule; c) authorize the Mayor and City Clerk to execute the contracts, in substantially the same form, for G&W Towing and MetroPro Towing, which include a proposed tow rate schedule; and d) approve the revised Towing Rate Schedule. Council Member Peotter offered a substitute motion. Council Member Curry believed that this is the grossest form of political manipulation to get buddies into the deal. Council Member Peotter noted that he has received no money from any of the towing agencies. Substitute motion by Council Member Peotter, seconded by Mayor Pro Tem Muldoon, a) introduce Ordinance No. 2016-2, An Ordinance of the City Council of the City of Newport Beach, California, Amending Newport Beach Municipal Code Chapter 5.15 Relating to Official Tow Services, and pass to second reading on February 9, 2016; b) adopt Resolution No. 2016-18, A Resolution of the City Council of the City of Newport Beach, California, Adding the Franchise Tow Fee to the City of Newport Beach’s Fee Schedule; c) authorize the Mayor and City Clerk to execute the contracts, in substantially the same form, for G&W Towing and Southside Towing, which include a proposed tow rate schedule; and specifying that Southside Towing must meet the 44,000 square foot minimum within 120-days or the contract reverts contract to MetroPro Towing, and maintain the five-year term, and d) approve the revised Towing Rate Schedule. City Attorney Harp reported that, in theory, Southside Towing should have had the additional space available on the date of the RFP. The substitute motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Mayor Pro Tem Muldoon Nays: Council Member Curry, Council Member Petros, Mayor Dixon XX. MOTION FOR RECONSIDERATION - None DR A F T City of Newport Beach Study Session and Regular Meeting January 26, 2016 Volume 62 - Page 560 XXI. ADJOURNMENT – Adjourned at 9:07 p.m. in memory of David Lee Parks The agenda was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on January 21, 2016, at 4:00 p.m. The amended agenda was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on January 22, 2016, at 12:00 p.m. ___________________________________________ Recording Secretary ___________________________________________ Mayor _____________________________________ City Clerk DR A F T