HomeMy WebLinkAbout06/14/2016 - Study Session / Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Study Session and Regular Meeting
June 14, 2016
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
SSL Clarification of Items on the Consent Calendar - None
SS2. Proclamation Recognizing the Newport Harbor Yacht Club's Centennial 1100-20161
Mayor Dixon read and presented the proclamation to Commodore Gary Hill recognizing the
Newport Harbor Yacht Club on its 100th Anniversary.
SS3. Medi -Cal Managed Care Rate Range Intergovernmental Transfer (IGT) Program [100-
20161
Fire Chief Poster introduced the Medi -Cal Managed Care Rate Range Intergovernmental
Transfer (IGT) Program.
Administrative Manager Crespi presented a PowerPoint presentation to provide the program
overview, purpose, and benefits; explain why the City should participate; and discuss the steps,
cycle, and program timeline.
In response to Council Member Petros' questions, Fire Chief Poster stated the Fire Department
responded to emergency calls and 393 responses were Medi -Cal patients. City Manager Kiff
stated he would leave the item on the Consent Calendar. He pointed out there was no
guarantee that the fiords would be returned to the City, noting there was a possibility that the
Federal funding could be unavailable, but he did not anticipate risk in the upcoming year. He
assured that the risk would be reviewed annually. Administrative Manager Crespi explained
the matching fund program for Medi -Cal services and the use of local funds as the State's
matching fund in order to draw down additional Federal funds. She stated the reimbursement
was the same throughout Orange County. Fire Chief Poster added that the funds were placed
in a fiduciary trust earmarked only for this purpose.
Council Member Peotter requested and received clarification that the proposal is for the City to
put $308,000 into the program and, in return, the City may receive an additional $108,000 plus
the $308,000 back; however, there was no guarantee. Fire Chief Poster reiterated that the
funds could not be spent in any other way and would be returned if not used. He reported that
UCI contributed $20 million. He stated this was not a new process, but there was no stated
agreement that payment would be made. City Attorney Harp reported that the County would
not outline specific repayment in writing. City Manager Kiff noted the funds could be spent on
emergency medical care.
Council Member Curry commended staff for following up on the program and indicated support
for obtaining reimbursement.
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In response to Council questions, Fire Chief Poster stated the City covers the cost of emergency
services. Administrative Manager Crespi stated UCI and the County of Orange had participated
in the program since 2011. She clarified that the proportion of reimbursement was not larger
before the Affordable Care Act (ACA) was passed.
SS4. Vessel Sewage Pumpout Program for Mooring Permittees [100-2016]
Harbor Resources Manager Miller presented a PowerPoint presentation, explaining the purpose
of the complimentary vessel sewage pumpout services to mooring permittees, City maintained
facilities, program details, request for proposal, and marketing. He requested feedback and
direction from Council.
Council Member Duffield discussed maintenance and costs associated with the pump stations.
He suggested implementing a discounted rate and suggested having the Harbor Commission
review the matter.
Council Member Selich indicated support for the proposed program.
Council Member Curry concurred with charging for the service.
Mayor Pro Tem Muldoon agreed that it would reduce pollution, but would prefer the Harbor
Commission provide input on the cost.
Council Member Peotter concurred with Mayor Pro Tem Muldoon. He suggested a small fee be
charged.
Mayor Dixon agreed that it was a good program and a small fee should be charged.
Gary Hill stated the program would also provide data on who was using the service.
Carter Ford requested the matter be deferred to the Harbor Commission.
Council Member Selich requested and received confirmation from Council Member Duffield that
the program was just for mooring permittees.
SSS. Council Input on City Self Certification of Water Regulations [100-2016]
Municipal Operations Director Murdoch discussed water conservation requirements and the
opportunity to lower levels.
Council Member Petros stated he was often asked why the City continually approved projects
yet asked existing neighbors to cut water use and believed it was necessary to define demand.
He requested science based on absorption of the General Plan.
Mayor Pro Tem Muldoon agreed with Council Member Selich's suggestion to drop the level
down one level.
In response to Council questions, Municipal Operations Director Murdoch explained that
population could be adjusted. He stated there were adequate water supplies, but reducing to
Level 0 could create problems. Further, he explained that Level 2 would be a 10-25% reduction,
with 2-3 irrigation days per week in the summer.
Council Member Duffield agreed with going to Level 2.
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City Manager Kiff stated the Governor's order contained restrictions. Municipal Operations
Director Murdoch discussed the restrictions that were contained in the City's Municipal Code.
Council Member Petros indicated support for Council Member Selich's recommendation for a 3 -
year forecast, but would like data on assumed water usage for the General Plan.
Council Member Peotter concurred with reducing to Level 2.
In response to Mayor Dixon's question, Municipal Operations Director Murdoch stated a level
reduction would be done by resolution.
III. PUBLIC COMMENT -None
IV. RECESS - 5:49 p.m.
V. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
VI. ROLL CALL
Present: Council Member Peotter, Council Member Duffield, Council Member Selich, Council
Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon
VII. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE - Council Member Peotter
VII. INVOCATION - Rabbi Robin Foonberg, Congregation B'nai Israel
IX. NOTICE TO THE PUBLIC
X. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEMS)
Council Member Petros stated he was honored to participate in the Brock McCann Memorial Walk,
discussed the Newport Harbor High School Jazz Picnic, and presented a picture of the landscaped
medians and the final phase of the sewer project.
Council Member Curry discussed the award received for staffing and service delivery for the one-stop
permitting center.
Council Member Selich stated he attended the Third Annual Balboa Yacht Club Wooden Boat Festival
on June 4, 2016, the Balboa Island Parade on June 5, 2016, and the Employee Annual Service Luncheon
on June 9, 2016. He thanked staff for their hard work. He displayed a slide of the Balboa Island
Temporary Bridge ribbon cutting ceremony.
Mayor Pro Tem Muldoon stated he also attended the Employee Appreciation Luncheon. He stated he,
Mayor Dixon, and Council Member Peotter participated in Fire Ops 101.
Mayor Dixon presented slides of the Employee Service Awards and Fire Ops 101. She announced that
the 52nd Annual Newport Beach Arts Exhibition will be held on June 18, 2016. She encouraged the
community to attend the meeting on short term lodging on June 21, 2016, at 5 pm. She recognized
Cristal McDonald, Deputy City Clerk, who was leaving Newport Beach for a position with another city.
Mayor Dixon indicated that she will be pulling Item 4, subsections 4, 6 and 7, to discuss at the same
time with Item 32 under Items Pulled from the Consent Calendar.
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XI. PUBLIC COMMENTS ON CONSENT CALENDAR
Regarding Item 11 (Approval of Purchase Agreement with Haaker Equipment Company for One
CNG -Powered Sewer Cleaner Truck), Jim Mosher stated Costa Mesa Sanitary purchased a larger truck
for less money. He questioned the reason for Item 19 (Request to Install Three Sidewalk Cafes along
East Coast Highway within the Newly Constructed Corona del Mar Entry Area Sidewalk).
Bellamy Walker requested that Item 19 be approved.
Relative to Item 11, City Manager Kiff explained that the City was purchasing a Compressed Natural
Gas (CNG) sanitary truck. He stated the engineering on the smaller truck was costlier.
Jim Walker thanked the Council for considering their application for outdoor dining (Item 19), believing
that Mr. Mosher was misinformed since outdoor dining would add energy and diversity to Corona del
Mar.
XII. CONSENT CALENDAR
READING OF MINUTES AND ORDINANCES
1. Minutes for the May 24, 2016 Study Session, Regular Meeting, and Joint Meeting with the
Finance Committee [100-2016]
Waive reading of subject minutes, approve as amended, and order filed.
2. Reading of Ordinances
Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title
only.
RESOLUTIONS FOR ADOPTION
3. Resolution Authorizing the Temporary Closure of Selected Streets for the July 4th
Holiday Period [100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2016-66, A Resolution of the City Council of the City of Newport Beach,
California, Authorizing the Temporary Closure of Back Bay Drive, the 100 Block of Orange
Street from Traffic off of Pacific Coast Highway, Via Oporto from Via Lido to 32nd Street, San
Joaquin Hills Road between Back Bay Drive and the Entrance to the Park Newport Apartment
Complex, and Via Malaga between Via Oporto and Via Lido.
5. Senate Bill 272 - The California Public Records Act: Local Agencies: Inventory [100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2016-73, A Resolution of the City Council of the City of Newport Beach,
California, Designating the City Clerk as Responsible for Maintaining the City's Catalog of
Enterprise Systems as Required by California Government Code Section 6270.5.
6. General Fund Budget Surplus Utilization Policy [100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
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b) Adopt Resolution No. 2016-74, A Resolution of the City Council of the City of Newport Beach,
California, Establishing a General Fund Surplus Utilization Policy, City Council Policy F-5.
7. Adoption of Fiscal Year 2015-16 Appropriations Limit [100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2016-75, A Resolution of the City Council of the City of Newport Beach,
California, Determining and Establishing an Appropriations Limit (GANN) for Fiscal Year
2016-17 in Accordance with Article XIIIB of the California Constitution and Government Code
Section 7910, in the amount of $178,325,103.
CONTRACTS AND AGREEMENTS
9. Marina Park Project - Notice of Completion for Contract No. 3897-C (15P14) - Building
and Site Development - Bid Package 3 [38/100-2016]
a) Determine that no further California Environmental Quality Act (CEQA) action is necessary.
All significant environmental effects for Marina Park have been adequately addressed in the
previously certified Environmental Impact Report No. (SCH No. 2008051096);
b) Accept the completed work for Contract No. 3897-C, Marina Park Project — "Building and Site
Development" and authorize the City Clerk to file a Notice of Completion for the project;
c) Authorize the City Clerk to release the Labor & Materials Bond for Contract No. 3897-C 65 days
after the Notice of Completion has been recorded in accordance with applicable portions of the
Civil Code; and
d) Release the Faithful Performance Bond for Contract No. 3897-C one year after acceptance by
the City Council.
10. Purchase of Command Post Vehicle [100-2016]
a) Approve the purchase of a 2016 Sprinter 3500 Van from Farber Specialty Vehicles,
Incorporated, of Reynoldsburg, Ohio, for a total cost of $147,306;
b) Authorize the City Manager to execute documents necessary to complete the purchase; and
c) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly.
11. Approval of Purchase Agreement with Haaker Equipment Company for One CNG -
Powered Sewer Cleaner Truck (C-8060-1) [38/100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Approve an agreement for the purchase of one CNG -powered Sewer Cleaner Truck from Haaker
Equipment Company for a total cost of $498,636.64, and authorize the Mayor and City Clerk to
execute the agreement.
12. Santa Ana -Delhi Diversion Project Agreement (C-8047-1) [38/100-2016]
a) Determine that the Mitigated Negative Declaration for the Santa Ana -Delhi Diversion Project is
adequate to address the potential environmental effects of the Council's action; and
b) Approve Santa Ana -Delhi Channel Diversion Project Agreement D15-013 ("Project Agreement"),
and authorize the City Manager to sign the Project Agreement.
13. Grant Industrial Waste Permit to J&J Marine Acquisition Company, LLC [100-2016]
a) Find the issuance of the permit exempt from the California Environmental Quality Act
("CEQA") pursuant to Section 15301 of the CEQA Guidelines, California Code of Regulations,
Title 14, Chapter 3;
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Study Session and Regular Meeting
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b) Receive and review the report;
c) Find no further investigation is necessary pursuant to NBMC 14.28.050 Issuance - Conditions;
and
d) Authorize the City Manager to execute the permit.
14. Agreement with Urban Graffiti Enterprises, Inc. for Graffiti Abatement Services (C-8061-
1) [381100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Approve and authorize the Mayor and City Clerk to execute the Maintenance Service Agreement
with Urban Graffiti Enterprises, Inc. for graffiti abatement services for five years with a total
amount not to exceed $450,000.00.
15. Agreement with the Laguna Beach County Water District (C-8017-1) [381100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Approve and authorize the execution of an Agreement between the City of Newport Beach and
the Laguna Beach County Water District for the provision of an interruptible supply of potable
water.
16. Tentative Agreement with the Part Time Employees Association of Newport Beach
(PTEANB) (C-3363) [381100-2016]
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Receive and consider the Tentative Agreement between the City of Newport Beach and the Part
Time Employees Association of Newport Beach.
MISCELLANEOUS
17. Planning Commission Agenda for the June 9, 2016 Meeting [100-2016]
Receive and file.
18. 2016 Water Consumer Confidence Report
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
b) Receive and file.
19. Request to Install Three Sidewalk Cafes along East Coast Highway within the Newly
Constructed Corona del Mar Entry Area Sidewalk [100-2016]
a) Find this action is categorically exempt from the State California Environmental Quality Act
(CEQA) Guidelines pursuant to Section 15303 — Class 3 (New Construction or Conversion of
Small Structures) on the basis that the improvements associated with the outdoor dining area
are considered accessory to the main structure;
b) Waive a portion of City Council Policy L-21, Sidewalk Cafe Standards and Procedures, to allow
six-foot and seven -foot -wide minimum pedestrian clear widths in potentially heavy pedestrian
traffic areas and to allow permanent barriers with a maximum height of 42 inches; and
c) Direct owners to apply for an Annual Outside Dining Encroachment Permit and pay all
applicable fees.
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City of Newport Beach
Study Session and Regular Meeting
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21. Annual Measure M Fund Eligibility Requirements 1100-20161
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly;
b) Adopt the Measure M 7 -Year CIP; and
c) Direct staff to submit all necessary material to OCTA to satisfy the Measure M annual
eligibility requirements.
Council Member Selich recused himself from Item 21 since he resides within 500 -feet of the
project
22. Board and Commission Scheduled Vacancies - Confirmation of Nominees [241100-20161
a) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly;
b) Waive the requirement in City Council Policy A-2 relative to having at least two (2) nominations
for each vacancy as it pertains to the Building and Fire Board of Appeals vacancies; and
c) Confirm the nominations made by the Ad Hoc Appointments Committee:
Board of Library Trustees [2 vacancies/minimum 4 nominees]
Douglas Coulter
Robyn Grant (incumbent)
David Sheffner
Paul Watkins
Building and Fire Board of Appeals [2 vacancies/minimum 2 nominees] (only received two
applications)
Khosrow Nourmohammadi (Saum Nour) (incumbent)
Rolly Pulaski
City Arts Commission [2 vacancies/minimum 4 nominees]
Michelle Bendetti
Leigh Donaldson
Vivien Hyman
Lesley Miller
Civil Service Board (Police and Fire nominees) [2 vacancies/minimum 5 nominees pursuant to
City Charter Section 7101*
1. Robyn Grant
2. Jane Della Grotta
3. Douglas Coulter
4. Douglas Wood
5. Sharon Wood
* The Police and Fire representatives ranked the nominees (as noted above) for City Council
consideration.
Harbor Commission [1 vacancy/minimum 2 nominees]
Ira Beer
Paul Blank (incumbent)
Parks. Beaches & Recreation Commission [1 vacancy/minimum 2 nominees]
David Granoff
Shelly Trainor
Planning Commission [2 vacancies/minimum 4 nominees]
James Barone
Bill Dunlap
Lauren Kleiman
Erik Weigand (incumbent)
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
Motion by Mayor Pro Tem Muldoon, seconded by Council Member Petros, to approve the
Consent Calendar, except for the items removed (Items 4, 8 and 20); and noting the recusal on Item 21
by Council Member Selich.
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
XIII. ITEM REMOVED FROM THE CONSENT CALENDAR
4. Calling the November 8, 2016 General Municipal Election [391100-2016]; and
32. Charter Amendment to Impose Restrictions on Debt Issuance [391100-2016]
City Attorney Harp stated City Council Policy A-6 (Open Meeting Policies) allowed for the Mayor to
reorder the agenda so the items could be heard together.
Mayor Pro Tem Muldoon agreed that requiring 5 votes to put a tax increase on the ballot was
appropriate. He suggested Council Member Peotter and Council Member Curry work on the ballot
measures to come to a compromise.
Motion by Mavor Pro Tem Muldoon. seconded by Council Member Peotter, to a) adopt the
following resolutions pertaining to the General Municipal Election scheduled for Tuesday,
November 8, 2016, pursuant to City Charter Section 1000:
1) Adopt Resolution No. 2016-67, AResolution of the City Council of the City of Newport Beach,
California, Calling for the Holding of a General Municipal Election to be Held on Tuesday,
November 8, 2016, for the Election of Members of the City Council as Required by the
Provisions of the City Charter•,
2) Adopt Resolution No. 2016-68, AResolution of the City Council of the City of Newport Beach,
California, Requesting the Board of Supervisors of the County of Orange to Consolidate a
General Municipal Election to be Held on Tuesday, November 8, 2016, with the Statewide
General Election to be Held on the Same Date Pursuant to California Elections Code Section
10403 for the Purpose of Electing Members of the City Council;
3) Adopt Resolution No. 2016-69, A Resolution of the City Council of the City of Newport Beach,
California, Adopting Regulations for Candidates for Elective Office Pertaining to Candidates
Statements Submitted to the Voters at an Election to be Held on Tuesday, November 8, 2016,
b) Determine that the action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not
result in a physical change to the environment, directly or indirectly; and
c) Refer the Newport Beach Taxpayer Protection Act and the Charter Amendment to Impose
Restrictions on Debt Issuance to the Finance Committee.
Council Member Curry discussed prior consideration by Council and believed that Mayor Pro Tem
Muldoon's suggestion was not practical. He discussed debt calculations on various bonds and
indicated opposition to the proposed restrictions on debt issuance. He indicated he did not want the
second measure to be tied to his proposal.
Mayor Pro Tem Muldoon suggested cutting taxes and allowing the voters to decide on debt.
Council Member Peotter supported allowing the voters to decide. He explained that the
$128 million City Hall would have been voted on by the people if the measure was in place. He
indicated that the intent was to insert the voters in the process when debt exceeds 25% of the
General Fund.
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June 14, 2016
Council Member Curry indicated opposition to the Council Member Peotter's proposal.
Mayor Dixon believed the matter should be vetted through the Finance Committee to work out the
issues.
Substitute motion by Council Member Curry, seconded by Council Member Selich, to
consider each of the items separately.
Jim Mosher questioned the urgency of the matter. He reminded Council that there was a cost for
putting a measure on the ballot and discussed prior instances of combining measures. He expressed
concern regarding the cost of the election.
Sam Weisheimer requested more information on the agenda items. Mayor Dixon suggested he
review the agenda reports.
City Attorney Harp explained the action necessary to revoke Resolution No. 2015-44, the resolution
relative to the Newport Beach Taxpayer Protection Act. He stated ballots would be distributed in
English, unless requested in another language.
In response to Council Member Curry's question, City Attorney Harp stated the resolution could be
amended or rescinded. Council Member Curry believed this was political hijacking.
Council Member Selich indicated support for voting separately.
The substitute motion failed by the following roll call vote:
Ayes: Council Member Selich, Council Member Curry, Council Member Petros
Nays: Council Member Peotter, Council Member Duffield, Mayor Pro Tem Muldoon, Mayor Dixon
The original motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Duffield, Mayor Pro Tem Muldoon, Mayor Dixon
Nays: Council Member Selich, Council Member Curry, Council Member Petros
8. Medi -Cal Managed Care Rate Range Intergovernmental Transfer (IGT) Program (C-8085-2)
[38/100-2016]
Council Member Peotter stated he will be voting against the program due to bureaucracy.
Council Member Petros stated the program was in place prior to the Affordable Care Act (ACA).
City Manager Kiff stated the ACA expanded funds to the State.
Council Member Curry believed opposition to the program was financially irresponsible.
Motion by Council Member Curry, seconded by Council Member Petros, to a) determine
that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical
change to the environment, directly or indirectly; b) adopt Resolution No. 2016-76, A Resolution of
the City Council of the City of Newport Beach, California, Authorizing the City Manager, or
Designee, to Execute Agreements with the Department of Health Care Services (DHCS) and
CalOptima to Participate in the FY 2014-2015 Medi -Cal Managed Care Rate Range
Intergovernmental Transfer (IGT) Program; and c) approve Budget Amendment No. 16BA-043 to
increase expenditure appropriations by $308,504.40 in the Medi -Cal IGT account 01040404-821008
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June 14, 2016
and to increase revenue estimates by $411,339 in the Medi -Cal IGT account 01040404-431246 of the
Fire Department.
Jim Mosher indicated support for staffs recommendation.
Mayor Pro Tem Muldoon expressed concern with the bureaucracy, but believed the City would
benefit from the program.
The motion carried by the following roll call vote:
Ayes: Council Member Selich, Council Member Duffield, Council Member Curry, Council Member
Petros, Mayor Pro Tem Muldoon, Mayor Dixon
Nays: Council Member Peotter
20. A Newport Beach Sustainability Plan [100-20161
Council Member Peotter stated he liked many components of the plan and the financial incentives,
but expressed concern with perpetuating a bureaucracy.
Motion by Council Member Petros- seconded by Council Member Selich, to a) determine
that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical
change to the environment, directly or indirectly; and b) forward the proposed Newport Beach
Sustainability Plan to the Planning Commission; Harbor Commission; Parks, Beaches, and
Recreation Commission; Tidelands Management Committee; Environmental Quality Affairs
Committee; Water Quality / Coastal Tidelands Committee and Finance Committee for review and
recommendation regarding the plan's implementation.
Nancy Gardner stated one of the points of the plan was to become more flexible. Mayor Dixon
concurred.
The motion carried by the following roll call vote:
Ayes: Council Member Selich, Council Member Duffield, Council Member Curry, Council Member
Petros, Mayor Dixon
Nays: Council Member Peotter, Mayor Pro Tem Muldoon
Mayor Dixon complimented staff on completion of the Marina Park project (Item 9).
Regarding Item 22 (Board and Commission Scheduled Vacancies - Confirmation of Nominees),
Council Member Curry discussed the Planning Commission nominees and stated he would also like
to nominate Debbi Stevens and Tim Steaks.
Mayor Pro Tem Muldoon objected to Council Member Curry's comments.
Council Member Peotter asked if Council Member Curry could add nominees. City Attorney Harp
stated nominees could be added if City Council Policy A-2 (Board, Commission and Committee
Appointments) were waived at the June 28, 2016 City Council meeting.
XIV. PUBLIC COMMENTS ON NON -AGENDA ITEMS
Jim Mosher discussed the budget as a spending plan, Auditor Controller's workshop on government
budgets, and believed the City's expenditures were not transparent to the public. He questioned the
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Study Session and Regular Meeting
June 14, 2016
XV.
XVI.
status of the Civic Center audit. City Attorney Harp stated the Civic Center audit would be brought to
Council at the September 9, 2016 City Council meeting.
Phil Milner, Newport Citizens for Responsible Growth (NCRG), indicated opposition to building a
stadium at Corona del Mar High School and discussed NCRG's proposed alternative plan.
City Attorney Harp stated the City was monitoring the project.
Geri Scherr addressed traffic and pedestrian issues near Corona del Mar High School and Middle
School.
Maura Quist discussed permit parking near Corona del Mar High School and requested Zone 3 to be
expanded to include additional streets.
Bernie Svalstad, President of the Newport Beach Historical Society, requested funding for the
Historical Society.
Andrew Hernandez thanked Council for bringing back the fire pits. He concurred with Mayor Dixon's
comments about Marina Park and commented about Sunset Ridge Park. He requested the boardwalk
be extended all the way to the jetty.
ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES
Council Member Petros announced that the Fin
4:00 p.m., in the Newport Coast Conference Room.
on the West Newport -Mesa streetscape plan will be
Christian School gym.
PUBLIC HEARINGS
ince Committee will meet on June 16, 2016, at
He also announced that the third public workshop
held on June 22, 2016, at 6:30 p.m., in the Pacifica
23. Resolution No. 2016-77: Fiscal Year 2016-17 Budget Adoption; City Budget Hearing;
Budget Adoption; Recommendations from the Finance Committee; Budget Checklist
Items; Other Financial Policy Recommendations [100-2016]
City Manager Kiff displayed and explained the Budget Checklist. He stated Mayor Pro Tem
Muldoon needed to recuse himself from the Peninsula wireless mesh item. City Attorney Harp
stated the Council should decide on the Peninsula item first.
Mayor Dixon opened the public hearing.
Adam Mikkelson discussed the unsafe conditions of the park at Newport Elementary School. He
stated it was a community issue based on shared use of the park. He requested that the City
commit to funding part of the upgrade to level the park.
Ann Marie Wallace -Williams thanked Council for its work. She joined the other parents and
students in requesting upgrades at the park at Newport Elementary School.
Jim Mosher suggested the unfunded pension liability be clearly outlined on the City's website.
Max Mikkelson, 6th grader at Newport Elementary, discussed the need to level the field at the
school.
Dena Baron, Newport Elementary School PTA President, urged Council to refurbish the field
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Council Member Peotter asked if the request had been made to the Newport -Mesa Unified School
District. Mr. Mikkelson stated the School District had discussed the matter with the City directly.
In response to Mayor Dixon's question, City Manager Kiff stated the matter was brought to the
City's attention by Newport Elementary parents. He stated the proposal was anticipated to cost
$500,000 and discussed the challenge of growing grass in the area. He pointed out that the School
District had not committed to any funding yet. He added that the grass had been in poor condition
even prior to the drought.
In response to Council Member Peotter's question, City Manager Kiff reported that the lease
requires the School District to maintain the grass which had not been done to standards.
Council Member Selich asked why the field was hard to maintain, pointing out that grass can grow
at the Balboa Peninsula Park. City Manager Kiff discussed how the school does not have the same
buffer that the Balboa Peninsula Park has that protects the grass.
In response to Mayor Pro Tem Muldoon's question, City Manager Kiff reiterated that the total
project was estimated to cost $500,000. He stated the 1989 fix only lasted 5 years. Public Works
Director Webb anticipated AstroTurf to cost $10 per square foot but would be easier to maintain.
Council Member Petros questioned the City paying for the repair.
In response to Mayor Dixon's question, City Manager Kiff stated he had provided the lease
agreement to the School District but he had not heard back.
Hearing no further testimony, Mayor Dixon closed the public hearing.
Mayor Pro Tem Muldoon recused himself from the Peninsula Wireless Mesh Network
budget item due to a business conflict.
Regarding the Peninsula Wireless Mesh Network item, Police Support Services Administrator
Stafford explained the nodes in the safety enhancement zone and expansion of the wireless network
on the Peninsula. Council Member Peotter asked why cellular service was not utilized. Police
Support Services Administrator Stafford discussed the systems utilizing the Wi-Fi system,
explained that additional cell towers would not resolve the issue due to the level of saturation, and
explained the use of cameras by the Lifeguards.
Council Member Petros suggested that the mesh network be put on hold for at least one year.
In response to Council Member Curry's question, City Manager Kiff emphasized that the project
was an important need for communication capacity. Fire Chief Poster discussed the copper wire
network on the beach and the need for an alternative network. He indicated support for the
proposed solution to enhance public safety.
Straw vote to retain the mesh network in the budget passed 6-0.
Council Member Selich requested discussion of Wastewater General Fund transfer -out and
Wastewater Operations Fund transfer -in items.
Council Member Duffield requested deferring Newport Harbor's public docks and piers
maintenance.
Mayor Dixon suggested discussing the Newport Elementary School park
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
Council Member Peotter requested discussion of the Partial Fresh Start
Straw vote to accept the remainder of the checklist passed 6-1, with Mayor Pro Tem
Muldoon voting no.
Council Member Selich explained that his opposition to the Wastewater General Fund transfer -out
and Wastewater Operations Fund transfer -in items is because this only subsidizes a portion of
water service in the City. He suggested the possibility of a loan.
Mayor Pro Tem Muldoon discussed the use of water and stated the surplus should be used for
infrastructure.
Council Member Curry stated the matter should have been resolved in 2007 and should not be
delayed. He shared Council Member Selich's discomfort and recommended the enterprise fund be
run like a business.
Council Member Peotter concurred that it should come out of the sewer fund. He asked if Council
Member Selich was interested in a general fund tax reduction to replace the sewer fund increase.
Council Member Selich suggested a loan from the general fund to be repaid over time.
In response to Mayor Dixon's question, City Manager Kiff discussed the process for an emergency
sewer repair. Mayor Dixon indicated support for the transfer to normalize the rates. She suggested
restoring the fund to ensure the sewer lines were in good working order.
Council Member Selich ask if the $3.5 million was to repair broken sewer lines. City Manager Kiff
stated the goal was to bring the reserve fund back up and to fund the repair plan. Council Member
Selich stated it should be done as a loan.
Straw vote to keep the Wastewater General Fund transfer -out and Wastewater
Operations Fund transfer -in on checklist passed 4-3, with Council Members Selich,
Curry, and Petros voting no.
City Manager Kiff explained the Partial Fresh Start for the pension contribution. Mayor Dixon
added that the Finance Committee had unanimously supported the Partial Fresh Start plan.
In response to Council Member Peotter's question, Finance Director Matusiewicz explained the
payback over 20 -years and phase-in approach, and discussed the annual payments. City Manager
Kiff stated the partial fresh start was for cities that could not afford making the payments.
Council Member Curry discussed negative amortization of pension liability. He commended the
Finance Committee for its unanimous decision.
Mayor Pro Tem Muldoon indicated support for the plan.
Council Member Peotter believed it did not make sense to make the commitment.
Council Member Petros stated the benefit was the commitment to pay the unfunded pension.
Straw vote to move forward with the Partial Fresh Start, as recommended by the
Finance Committee passed 6-1, with Council Member Peotter voting no.
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
Council Member Duffield commented on the replacement cycle for Newport Harbor's public docks
and piers and believed the harbor and pier had already been maintained and the maintenance of
floating docks could be deferred 12 -months.
Council Member Selich asked if the Harbor Commission was also considering maintenance. City
Manager Kiff clarified that this item was for the annual maintenance of City owned piers and
Council Member Duffield believed that the maintenance could be deferred. He stated the Finance
Committee had recommended that the Harbor Commission review the maintenance schedule.
Council Member Duffield stated he could support deferring maintenance in order for the Harbor
Commission to report back.
Council Member Curry suggested the possibility of reducing the cost after consideration by the
Harbor Commission.
In response to Mayor Dixon's question, City Manager Kiff stated the suggestion was to zero the line
item while the Harbor Commission reviewed the maintenance schedule.
Straw vote to defer the item/remove item from the CIP budget passed 6-1, with Council
Member Curry voting no.
City Manager Kiff stated the Newport Elementary School park was not currently on the checklist.
Mayor Dixon suggested setting aside $250,000 of the $300,000 of the replacement cycle for Newport
Harbor's public docks and piers item that was just removed from the budget.
City Manager Kiff explained that the Newport Elementary School park was in tidelands, resulting a
net reduction of $50,000.
Council Member Petros indicated support for setting aside $250,000, but emphasizing that the
School District has the share of the maintenance obligation. He encouraged the residents to also
contact the School District.
Council Member Selich stated he could support the proposal, as long as the School District
contributed at least 50 percent.
Council Member Peotter stated the City was only matching up to $250,000.
City Manager I{iff confirmed that the item was being budgeted, but the funds are not yet expended.
Straw vote to add to the Newport Elementary School park/field to the checklist for an
amount up to $250,000, as long as the funds are matched by the School District, passed
5-2, with Mayor Pro Tem Muldoon and Council Member Duffield voting no.
Council Member Selich requested consideration of providing $10,000 to the Newport Beach
Historical Society and $35,000 to the Balboa Island Historical Society. City Manager Kiff stated
there was only $40,000 budgeted in the community grant funds.
Council Member Peotter clarified that the budget did not currently contain funds for the Historical
Societies.
Mayor Dixon requested this be considered as part of the community grant funds.
Council Member Petros believed the Historical Societies should apply for the grant.
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
Mayor Dixon stated she could support increasing the grant amount
Straw vote to increase the community grant program by $35,000, reserving $25,000 for
the Balboa Island Historical Society and $10,000 for the Newport Beach Historical
Society passed 6-1 with Council Member Peotter voting no.
Council Member Petros discussed the Finance Committee's review of the proposed budget and
explained the inclusions in the "flat budget."
Motion by Council Member Petros, seconded by Council Member Curry, to a) determine
that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical
change to the environment, directly or indirectly; b) approve the Finance Committee's
recommendations regarding eight (8) policy or program questions raised by City Council Members
at the May 24, 2016 Joint Meeting; and c) approve Resolution No. 2016-77, A Resolution of the City
Council of the City of Newport Beach, California, Adopting the Budget for the 2016-17 Fiscal Year,
as amended by the budget checklist.
Mayor Dixon complimented Council Members Petros and Curry on their leadership on the Finance
Committee. She thanked staff and the public members. She expressed concern over the
$300 million unfunded pension liability, but indicated support for the proposed budget.
Council Member Duffield complimented his Finance Committee appointee, Will O'Neill, and all
citizen Finance Committee members.
Council Member Peotter thanked the Finance Committee and agreed that unfunded pension
liability needs to be dealt with.
Mayor Pro Tem Muldoon expressed gratitude to the Finance Committee members and committed to
paying down the unfunded pension liability.
Council Member Curry thanked the Finance Committee and reported that the actuary would be
voted on at the upcoming Finance Committee meeting.
City Manager Kiff thanked staff for its work on the budget.
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
Mayor Dixon recessed the meeting at 9:58 p.m. and reconvened the meeting at 10:04 p.m. with all
members of the City Council in attendance.
24. Public Hearing for 2015 Urban Water Management Plan [100-20161
Municipal Operations Director Murdoch introduced Utilities Manager Catron.
Mayor Dixon opened the public hearing.
Susan Skinner stated that the Urban Water Management Plan was the legal tool to approve
development, but believed there was not enough water supply for existing development. She
indicated that the water conservation of current residents would be used for future developments.
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
Nancy Skinner discussed desalinization and suggested only the Orange County Water District build
and run the facility.
Jim Mosher stated it was a State requirement for the City to approve a Water Management Plan
every five years. He believed there was inadequate consideration between the City and residents,
suggested the document contain an executive summary and conclusions, and questioned whether
there was a water crisis or plenty of water, and the data validity score.
Bernadette McCann discussed efforts to reduce water use, suggested alternatives, such as grey
water use, and discussed her family's water conservation efforts.
Sharon Koch, Chair of the Angeles Chapter of the Sierra Club, expressed disappointment that the
public hearing was so late in the evening and requested continuing the hearing. She believed
desalinization was not a solution.
Hearing no further testimony, Mayor Dixon closed the public hearing.
Municipal Operations Director Murdoch indicated that staff is requesting input from Council and
the public. He stated the matter would come back for adoption. He explained the Poseidon project,
stated the State mandated the requirements for the plan, and would ask about including a
summary and conclusions. He explained the data validity score. He clarified that using grey water
systems was not illegal, but required a permit.
Council Member Petros stated current resident conservation would not be used for future
development. Municipal Operations Director Murdoch explained that the plan identified the
General Plan and development projections. He stated both drought and infrastructure were
addressed in the plan. Council Member Petros stated there was adequate water supply available to
see the General Plan through.
Motion by Council Member Peotter, seconded by Council Member Curry, to a) determine
that this action is not subject to the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in
Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because
it has no potential for resulting in physical change to the environment, directly or indirectly; and
b) direct staff to include any comments and return item to June 28, 2016 City Council meeting for
adoption.
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
25. Troesh Residence Appeal Located at 336 Catalina Drive and 333 La Jolla Drive -
Modification Permit No. MD2015-008, Variance No. VA2015-003 (PA2015-122) [100-2016]
Community Development Director Brandt provided the staff report.
Motion by Council Member Selich. seconded by Council Member Petros, to a) find that the
action is not subject to the California Environmental Quality Act; and b) refer the application on
appeal to the Planning Commission for further consideration due to project changes.
Mayor Dixon opened the public hearing.
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
XVII.
Gavin Sacks questioned whether the plans had changed significantly enough to rehear the entire
case. City Attorney Harp explained that the matter would go back to the Planning Commission for
further consideration.
Jim Mosher questioned the process.
Hearing no further testimony, Mayor Dixon closed the public hearing.
Community Development Director Brandt explained that the matter was appealed to Council and it
could be referred to the Planning Commission for consideration. She stated that Council could refer
the matter to the Planning Commission and then have it come back to Council.
Council Member Petros indicated support for the motion, but wanted to ensure the Planning
Commission reviewed all issues.
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
Noting that Mr. and Mrs. McCann were in the audience and without objection, Mayor
Dixon took Item 31 out of order.
31. Bike/Pedestrian Safety Around Schools (and Other Areas) [100-2016]
City Manager Kiff provided the staff report.
Council Member Petros commended Mr. and Mrs. McCann for attending the Council meeting. He
stated that safety was the number one item in the plan, yet the tragedy occurred. He discussed
efforts to implement initiatives to improve safety.
Motion by Council Member Petros. seconded by Council Member Curry, to a) determine
that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical
change to the environment, directly or indirectly; and b) direct staff to examine the concepts
outlined in the staff report, seek additional community perspectives on the subject, and to report
back to the Council in the near future on how to enhance and improve ways to get to and from
schools and other key areas frequented by children on bikes.
Robert Schott discussed safety concerns in the Newport Heights area. He encouraged Council to
work towards making significant changes.
Gina Cereda discussed the need for bike safety in the Newport Heights area. She requested
information on the timeline for implementation.
Somer Harding, Principal of Newport Heights Elementary School, addressed the loss of Brock
McCann. She encouraged Council to consider the safety issues in the Newport Heights area.
City Manager Kiff reported that the process would begin immediately
The motion carried by the following roll call vote:
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council
Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon
XVI. PUBLIC HEARINGS - Continued
26. Resolution No. 2016-78: Renewal of the Corona del Mar Business District for Fiscal Year
2016-2017 and Advisory Board Appointments for Fiscal Year 2016-2017 (C-8119-1) [38/100-
20161
Motion by Council Member Curry, seconded by Council Member Petros, to a) adopt
Resolution No. 2016-78, A Resolution of the City Council of the City of Newport Beach, California,
Confirming the Levying of Assessments for the Fiscal Year of July 1, 2016 to June 30, 2017 for the
Corona del Mar Business Improvement District since the protests represent less than 50 percent of
the total assessment amount; a) abandon the proceedings to renew the Corona del Mar Business
Improvement District since the protests represent 50 percent or more of the total assessment,
abandon the proceedings to renew the; b) determine that the action is exempt from the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA
Guidelines because it will not result in a physical change to the environment, directly or indirectly;
c increase the CdM BID funding to $40,000 each year through fiscal year 2017-2018; d) authorize
staff to enter into a two-year agreement for CdM BID bookkeeping support services with Linda
Leonhard, dba Community Business Solutions for a not -to -exceed amount of $31,200; and e) appoint
the following to the Corona del Mar Business Improvement District Advisory Board of Directors for
fiscal year 2016-2017:
Keith Dawson, Dawson & Dawson
Edward Hanley, Hanley Investment Group
Hamid Kianipur, 76 Gas Station
Scott LaFleur, representing Cafe Jardin
Scott Laidlaw, Laidlaw Schultz Architects
Shawn Lim, Rose Bakery Cafe
Bernie Svalstad, BPS Financial
Jim Walker, The Bungalow Restaurant
Mayor Dixon opened the public hearing.
Jim Mosher believed there was no requirement to appoint the Board of Directors annually and
suggested staggered four-year terms. He discussed the accounting process.
Hearing no further testimony, Mayor Dixon closed the public hearing.
Substitute motion by Mayor Dixon, seconded by Mayor Pro Tem Muldoon, to a) adopt
Resolution No. 2016-78, A Resolution of the City Council of the City of Newport Beach, California,
Confirming the Levying of Assessments for the Fiscal Year of July 1, 2016 to June 30, 2017 for the
Corona del Mar Business Improvement District since the protests represent less than 50 percent of
the total assessment amount; a) abandon the proceedings to renew the Corona del Mar Business
Improvement District since the protests represent 50 percent or more of the total assessment,
abandon the proceedings to renew the; b) determine that the action is exempt from the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA
Guidelines because it will not result in a physical change to the environment, directly or indirectly;
c increase the CdM BID funding to $40,000 each year through fiscal year 2017-2018; d) authorize
staff to enter into a two-year agreement for CdM BID bookkeeping support services with Linda
Leonhard, dba Community Business Solutions for a not -to -exceed amount of $31,200; e) direct the
CdM BID and staff to look at pros and cons of moving towards the Property and Business
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
Improvement District Law of 1994; and f) appoint the following to the Corona del Mar Business
Improvement District Advisory Board of Directors for fiscal year 2016-2017:
Keith Dawson, Dawson & Dawson
Edward Hanley, Hanley Investment Group
Hamid Kianipur, 76 Gas Station
Scott LaFleur, representing Caf6 Jardin
Scott Laidlaw, Laidlaw Schultz Architects
Shawn Lim, Rose Bakery Caf6
Bernie Svalstad, BPS Financial
Jim Walker, The Bungalow Restaurant
The substitute 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
27. Resolution No. 2016-79: Renewal of the Newport Beach Restaurant Association Business
District for Fiscal Year 2016-2017 and Advisory Board Appointments for Fiscal Year 2016-
2017 (C-8139-1) [381100-20161
Motion by Council Member Curry, seconded by Council Member Petros, to a) adopt
Resolution No. 2016-79, A Resolution of the City Council of the City of Newport Beach, California,
Confirming the Levying of Assessments for the Fiscal Year of July 1, 2016 to June 30, 2017 for the
Newport Beach Restaurant Association Business Improvement District since the protests represent
less than 50 percent of the total assessment amount; b) determine that the action is exempt from
the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3)
of the CEQA Guidelines because it will not result in a physical change to the environment, directly
or indirectly; c) increase the Newport Beach Restaurant Association Business Improvement District
funding to $40,000 each year through fiscal year 2017-2018; d) authorize staff to enter into a two-
year agreement for the Newport Beach Restaurant Association Business Improvement District
bookkeeping services with Newport Beach & Company for a not -to -exceed amount of $36,000; and
e) appoint the following to the Newport Beach Restaurant Association Business Improvement
District Advisory Board of Directors for fiscal year 2016-2017:
John DeFrenza, representing Crocker's "The Well Dressed Frank"
Mario Marovic, Malarky's Irish Pub
Bruno Massuger, Newport Dunes Resort
Matthew Meddock, Sessions West Coast Deli
Dan Miller, The Village Inn
Jordan Otterbein, A Restaurant & Market
Catherine Pavlos, Provenance Restaurant
Christopher Roman, CUCINA enoteca
Brendon Salisbury, The Cannery Restaurant
Ron Schwartz, Muldoon's Irish Pub
Jim Walker, The Bungalow Restaurant
Mayor Dixon opened the public hearing.
Jim Walker, President of the Newport Beach Restaurant Association, requested the bid be renewed.
Hearing no further testimony, Mayor Dixon closed the public hearing.
Mayor Dixon commended the Restaurant Association on its work with the City and its marketing.
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
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
XVII. CURRENT BUSINESS - Continued
28. Irvine Avenue Pavement and Median Rehabilitation — Award of Contract No. 5869
(15R16) [381100-20161
Motion by Mayor Pro Tem Muldoon, seconded by Council Member Petros, to a) find this
project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section
15301(c) (minor alterations of existing public facilities involving negligible expansion of capacity) of
the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential to have a significant effect on the environment; b) approve the project drawings and
specifications; c) upon approval of the necessary programmed project funding with the adoption of
the FY16117 Capital Improvement Budget, award Contract No. 5869 to All American Asphalt for
the total bid price of $1,662,662.00, and authorize the Mayor and the City Clerk to execute the
contract; and d) establish an amount of $165,000.00 (10 percent) to cover the cost of unforeseen
work not included in the original contract.
Council Member Peotter questioned the proposed landscaping and suggested using wood chips or
drought tolerant material.
Council Member Petros stated the location is a signature entry to the City and that the proposed
landscaping was already drought tolerant.
Substitute motion by Council Member Peotter, seconded by Council Member Selich, to
change the landscaping to drought -tolerant hydro -seed.
In response to Mayor Dixon's question, Public Works Director Webb discussed the possibility of
using drought tolerant hydro -seed. He stated the proposal would change the scope and may require
the project to be rebid. He reported that the irrigation system in that area was older and needed to
be replaced. He discussed the irrigation and landscaping costs.
Council Member Duffield suggested deferring landscaping entirely due to the drought. City
Manager Kiff stated the project could be reduced by $450,000 if the irrigation was not included.
Council Member Petros discussed the cost of the median and expressed concern with the need to
re -bid the project if modified.
City Manager Kiff stated the alternate motion might involve a rebid.
Amended substitute motion by Council Member Peotter, seconded by Council Member
Selich, to a) change the landscaping to drought -tolerant hydro -seed; and b) not approve the
contract and rebid the project due to the change of scope.
The amended 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
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City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
29. Sewer Main Lining and Repairs — Award of Contract No. 6363 (15S03) [38/100-20161
Motion by Council Member Curry, seconded by Council Member Petros, to a) find this
project exempt from the California Environmental Quality Act (CEQA) pursuant to Class 2 Section
15301 (c) (minor alterations of existing public facilities involving negligible expansion of capacity) of
the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential to have a significant effect on the environment; b) approve the project drawings and
specifications; c) upon approval of the necessary programmed project funding with the adoption of
the FY16/17 Capital Improvement Program Budget, award Contract No. 6363 to Mike Prlich and
Sons, Inc. for the total bid price of $588,775.00, and authorize the Mayor and the City Clerk to
execute the contract; and d) establish an amount of $60,000.00 (10 percent) to cover the cost of
unforeseen work not included in the original contract.
The motion carried by the following roll call vote:
Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council
Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon
30. Auditor Recommendation (C-8092-1) [38/100-20161
Motion by Council Member Curry, seconded by Council Member Petros, to a) determine
that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to
Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical
change to the environment, directly or indirectly; and b) authorize the Mayor and City Clerk to sign
a contract with White, Nelson, Diehl, Evans LLP to perform the City's annual financial audit for the
Fiscal Year 2015-2016, with the option to renew the contract for four additional one-year terms.
Jim Mosher believed the auditor was supposed to be selected at the beginning of the fiscal year. He
suggested rejecting the proposal and consider hiring a new auditor.
Council Member Peotter concurred with Mr. Mosher for the need for a fresh set of eyes.
Substitute motion by Council Member Peotter, seconded by Council Member Duffield, to
authorize the Mayor and City Clerk to sign a contract with Davis Farr, LLP to perform the City's
annual financial audit for the Fiscal Year 2015-2016, with the option to renew the contract for four
additional one-year terms.
Council Member Curry stated the recommendation for the auditor was carefully considered and
unanimously approved by the Finance Committee.
In response to Council Member Peotter's question, City Manager Kiff presented the technical scores
and rankings.
Mayor Pro Tem Muldoon suggested supporting the recommendation with reconsideration next year.
City Manager Kiff reported that the term of the agreement was for five years.
Mayor Dixon expressed concern with the substitute motion since Davis Farr, LLP had relations
with the City of Bell.
Volume 63 - Page 38
City of Newport Beach
Study Session and Regular Meeting
June 14, 2016
The substitute motion failed by the following roll call vote:
Ayes: Council Member Peotter, Council Member Duffield
Nays: Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem
Muldoon, Mayor Dixon
The original motion carried by the following roll call vote:
Ayes: Council Member Selich, Council Member Curry,
Muldoon, Mayor Dixon
Nays: Council Member Peotter, Council Member Duffield
XVIII. MOTION FOR RECONSIDERATION - None
Council Member Petros, Mayor Pro Tem
XIX. ADJOURNMENT -Adjourned at 11:04 p.m. in memory of Brock McCann
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
May 19, 2016, at 4:00 p.m.
Ak ;,
City Clerk
01,�_
Ov-
Mayor
Volume 63 - Page 39