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HomeMy WebLinkAbout01 - MinutesJuly 12, 2016 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting June 28, 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 SS1. Clarification of Items on the Consent Calendar - None SS2. Recognition of Bystanders and Fire Personnel - Marriott Villas Rescue [100-2016] Mayor Dixon recognized the following bystanders and Fire Department personnel for the rescue of Nixon Minor at Marriott Villas on February 15, 2016, and presented Newport Beach Fire Department Heroic Act Awards to Lorna Campbell, Ralph Davis, Campbell Davis, Fire Captain Roman Taijeron, Fire Engineer Brian Frasz, Paramedic Kevin Gonzalez, Paramedic Joe Laser, Paramedic Ryan O'Leary and Fire Chief Poster. Nixon Minor was presented with child -sized firefighter gear. SS3. Recognition of Lifeguards and Paramedics - Corona del Mar State Beach Rescue [100- 2016] Mayor Dixon recognized the lifeguards and paramedics for recovering the swimmer from the May 29, 2016 shark attack and presented proclamations to Lifeguard Captain Mike Ure and Lifeguard Andrew Matsuyama. Fire Chief Poster commended the lifeguards and fire paramedics. SS4. Fourth of July Activities Preview [100-2016] Police Chief Lewis and Police Deputy Chief Birch presented a PowerPoint presentation outlining the 4th of July holiday plan, including goals, the Police mission, safety enhancement zone, and deployment. Police Deputy Chief Birch discussed 2015 data, including citations and arrests, and indicated that information would be available on the Police Department's website and Nixle. In response to Council questions, Police Deputy Chief Birch reported that the number of allied patrols have reduced over the years. He confirmed there would be a Police presence at Marina Park and discussed increased enforcement in areas outside of the Peninsula. Recreation and Senior Services Director Detweiler presented a PowerPoint presentation to outline the 6th Annual 41h of July Peninsula Parade and 401h Annual Mariners Park Independence Day Parade and Celebration. She thanked the committee members and law enforcement. Council Member Curry commended volunteers for putting on the two events. George Schroeder discussed the improved conditions in the enhancement zone and expressed appreciation for increased staff and resources. Volume 63 - Page 40 City of Newport Beach Study Session and Regular Meeting June 28, 2016 Richard Bergstrom asked if bicycle patrol was available. Police Chief Lewis stated the Peninsula Enforcement Team had returned. Mayor Dixon thanked law enforcement, the Recreation and Senior Services Department, the planning committees, and former Mayor Mike Henn. SS5. Safety Along Ocean Front Walk (Surreys, Segways, Speed Limits, and More) [100- 2016] Assistant to the City Manager Finnigan presented a PowerPoint presentation, outlining the Newport Beach Municipal Code (NBMC) and safety regulations on the boardwalk. She discussed current concerns regarding Segways and surrey cycles. She recommended updating the NBMC to reflect the definitions in the California Vehicle Code. She discussed complaints about excessive speeds and enforcement, presented long, ,term ideas, and listed the current prohibited uses and others that could be prohibited. In response to Mayor Pro Tem Muldoon's questions, Deputy City Attorney Maiorano offered the definition of Segway and noted it could be used for disabled accessibility. He discussed motorized scooters and stated any equipment could be used by a disabled person. Mayor Pro Tem Muldoon requested additional information about electric bikes. Council Member Duffield provided information about the different types of electric bikes. Kent McNaughtin, 20th Street Beach and Bike, discussed the number of bicycle rentals on the Peninsula. He suggested widening the boardwalk or building an adjacent boardwalk, expressed concerns about Segways, and encouraged continued use of surreys. Craig Levine addressed the dangers on the boardwalk and stated he had never seen a disabled person on a Segway. He believed surreys made it difficult to walk, speed on the boardwalk was an issue, and motorized vehicles should not be allowed. Denys Oberman offered thoughts on congestion and accidents on the boardwalk. She proposed allowing pedestrians, non -assisted bicycles, skaters and rollerbladers, and vehicles used for handicapped assistance, and suggested clarifying signage and committing to enforcement. George Schroeder discussed bicycle safety and suggested that electric bikes, Segways, surreys, and skaters and rollerbladers be prohibited on the boardwalk. Paul Watkins expressed opposition to extending the boardwalk. Martin Derek, Seaside Bicycle Company, provided a handout indicating electric bikes were considered bicycles not a motorized vehicle. He stated his company provides mobility scooters and directed all his users to remain below 8 miles per hour. Brian Ouzounian believed the rolling public created chaos on the boardwalk and suggested the Master Plan be amended to provide a circulation plan for the rolling public. He expressed the opinion that it was unsafe to walk on the boardwalk and suggested using additional solar radar speed signs. Ken Rawson believed the boardwalk was an asset, the California Vehicle Code differentiated between pedal -assist and throttle -only bicycles, and hover boards were similar to skateboards. He discussed parking issues on the Peninsula. Volume 63 - Page 41 City of Newport Beach Study Session and Regular Meeting June 28, 2016 Carol Eatough, Segway Orange County owner, indicated their units were set at a maximum 8 miles per hour. She noted they do not participate in large tours and do not use the boardwalk on weekends and holidays. She requested that Council consider regulating permits for Segway tours and recommended prohibiting hover boards on the boardwalk. Council Member Curry stated it was necessary to seek balance between residents, visitors and public safety. He believed the issue was speed, and suggested limiting surreys on the street and Segways from the boardwalk. Council Member Peotter proposed considering a boardwalk improvement plan. He stated he would be in favor of widening the boardwalk and adding a separate bike lane. He discussed the multi-year process for adding a bike lane. Council Member Duffield asked if it was feasible to identify peak use on the boardwalk. Police Chief Lewis responded that allowing certain modes at certain times could be reviewed. Mayor Dixon agreed with the need to synchronize definitions with the California Vehicle Code, accommodate handicapped use, improve signage, limit Segway tour participants, allow low use of surreys, restrict hover board use on the boardwalk, and differentiate between throttle and pedal -assist electric bikes. She discussed obstacles with building out the boardwalk. Mayor Pro Tem Muldoon believed that the City should not ban fun. He suggested talking to hover board and skateboard users before banning their uses on the boardwalk. Assistant to the City Manager Finnigan clarified that Council was directing staff to investigate ways to accommodate surreys, come back with opinions on Segways and hover boards, and incorporate the California Vehicle Code into the NBMC. Mayor Dixon requested information on how other coastal cities dealt with hover boards, and agreed with the need to study infrastructure. SS6. Orange County Public Works: Lower Santa Ana River Dredging/Sand Management Project [100-2016] L AW Without objection, Council agreed to move the item to the Regular Meeting. III. PUBLIC COMMENT - None IV. RECESS - 6:49 p.m. V. RECONVENED AT 7:03 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 - Mayor Pro Tem Muldoon VII. INVOCATION - Dr. Stanley Smith, Harbor Christian Church IX. NOTICE TO THE PUBLIC Volume 63 - Page 42 City of Newport Beach Study Session and Regular Meeting June 28, 2016 SS6. Orange County Public Works: Lower Santa Ana River Dredging/Sand Management Project [100-20161 Nardy Khan, Interim Deputy Director of Public Works, Orange County Public Works Department, presented a PowerPoint presentation highlighting the project objectives, project location and area, and approvals and agreements. In response to Council questions, Ms. Khan noted the red lines depicted the pipe lines and the pipes were installed in a V -ditch. Public Works Director Webb explained the pipe system and discussed the benefits for the beaches and stated material would also be used for the bay areas. Ms. Khan explained pipe installation, anticipated schedule, project preparations, bike path closure, and outreach efforts. In response to Council questions about the dog beach, Ms. Khan indicated that the sand bar would be removed temporarily, but is expected to be restored due to tide action. Jim Mosher noted that the matter is on the July 14, 2016 Coastal Commission agenda. X. CITY COUNCIL ANNOUNCEMENTS (NON -DISCUSSION ITEMS) Council Member Petros announced that he suspended his election campaign and would not be seeking reelection. Council Member Curry commended Council Member Petros for his service. He stated he was hosting a community forum on July 8, 2016, at the Newport Coast Community Center at 5:30 p.m. Council Member Duffield announced the addition of the Newport Outrigger Canoe Club at Castaways. Mayor Pro Tem Muldoon thanked Council Member Petros for his service. Mayor Dixon stated that Council is disappointed that Council Member Petros would no longer be on the City Council. Mayor Dixon reported she attended the 84th Annual Conference of Mayors in Indianapolis at which an FAA resolution was supported, there were discussions with online vacation rental companies, and she attended presentations on kindness. Mayor Dixon also discussed efforts by the Orange County Task Force on Drowning Prevention. XI. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 13 (Special Event Support Program), Jim Mosher indicated support for the recommendation to reduce dependence on City funds. He suggested complete transparency fee waivers. John De Frenza requested clarification on Item 4 (Resolution of Intention to Amend the Stakeholder Business Structure and Annual Assessment Levied and Resolution of Intention to Forgive Delinquent Assessments and Penalties for the Newport Beach Restaurant Association Business Improvement District). Suzanne Forster presented a PowerPoint regarding Item 5 (Urban Water Management Plan) and believed there is an overinflated projected water supply. Volume 63 - Page 43 City of Newport Beach Study Session and Regular Meeting June 28, 2016 Jim Walker discussed efforts to collect fees within the Newport Beach Restaurant Association Business Improvement District (BID) (Item 4). He suggested forgiving the past due bid fees and stated the BID would do a better job collecting fees. Regarding Item 4, Victoria Crocker -De Frenza expressed concern as a restaurant owner and indicated she received no benefit from the fee. Marcel Ford, President of the Balboa Village Merchant Association, thanked the Council for its past support and requested continued support (Item 13). XII. CONSENT CALENDAR READING OF MINUTES AND ORDINANCES 1. Minutes for the June 14, 2016 Study Session and Regular Meeting [100-20161 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. Emergency Management Performance Grant Authorization (C-8081-1) [38/100-20161 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; and b) Adopt Resolution No. 2016-80, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the City Manager and the Police Chief to Act as the City's 'Authorized Agents" to Sign and Execute Documents for the Purpose of Participating in the Emergency Management Performance Grant Program. 5. Adoption of the 2015 Urban Water Management Plan [100-20161 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; and b) Adopt Resolution No. 2016-83, A Resolution of the City Council of the City of Newport Beach, California, Adopting the 2015 Urban Water Management Plan; and c) Direct staff to fulfill the notification requirements set forth by the Water Code once the UWMP is adopted. Memorandum of Understanding with the Part Time Employees Association of Newport Beach (C-3363) [38/100-20161 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; and b) Adopt Resolution No. 2016-84, A Resolution of the City Council of the City of Newport Beach, California, Adopting the Memorandum of Understanding between the City of Newport Beach and the Part Time Employees Association of Newport Beach and Establishing Salary Ranges for Certain Represented and Unrepresented Part -Time Positions, for the period July 1, 2015 through December 31, 2018. Volume 63 - Page 44 City of Newport Beach Study Session and Regular Meeting June 28, 2016 7. Resolution of Intention to Declare a Level Two Water Supply Shortage/Water Conservation Goals [100-20161 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; and b) Adopt Resolution No. 2016-85, A Resolution of the City Council of the City of Newport Beach, California, Noticing Its Intention to Declare a Level Two Water Supply Shortage, setting customer usage to 85 percent of their 2013 usage for the same billing cycle or of a similar property and use if no billing data is available; c) Direct the City Clerk to publish Resolution No. 2016-85 within (15) fifteen days of adoption of the Resolution; and d) Set the date of July 12, 2016 for a public hearing. 8. Approve Resolution Authorizing Grant Application for the Orange County Transportation Authority Bicycle Corridor Improvement Program [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. 2016-86, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Application of Funds for the Bicycle Corridor Improvement Program Funded with Congestion Mitigation and Air Quality Program Under the Moving Ahead for Progress in the 21st Century and Fixing America's Surface Transportation Federal Transportation Act for the Newport Beach Bicycle and Pedestrian Bridge Project. CONTRACTS AND AGREEMENTS Amendment No. 4 to Contract No. 5505 with SunGard Public Sector, LLC (C-5505) [38/100- 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; and b) Approve Amendment No. 4 to Contract No. 5505 with SunGard Public Sector, LLC, of Lake Mary, Florida, in the amount of $350,000 for Police and Lifeguard CAD/RMS purchases, and authorize the Mayor and City Clerk to execute the amendment. 10. Approval of On -Call Maintenance/Repair Services Agreement for Water Well and Water Pump Station Maintenance Services (C-8080-1) [38/100-20161 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) Approve an on-call Maintenance/Repair Services Agreement with Layne Christensen Company for water well and water pump station maintenance services, and authorize the Mayor and City Clerk to sign the agreement. c) Approve an on-call Maintenance/Repair Services Agreement with Weber Water Resources CA, LLC for water well and water pump station maintenance services, and authorize the Mayor and City Clerk to sign the agreement. 11. Approve Amendment No. One to the Utilities On -Call Maintenance/Repair Services Agreement with T.E. Roberts, Inc. (C-6149) [38/100-20161 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; and Volume 63 - Page 45 City of Newport Beach Study Session and Regular Meeting June 28, 2016 b) Approve Amendment No. One with T.E. Roberts, Inc. for utility on-call maintenance/repair services increasing the compensation limits by $200,000 for the remaining two year period of the agreement, and authorize the Mayor and City Clerk to execute the amendment. 12. Newport Theater Arts Center Building Improvements - Award of Contract No. 7022-2 (15F02) [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; b) Approve the project drawings and specifications; c) Award Contract No. 7022-2 to Optima RPM, Inc. for the total bid price of $188,851.00, and authorize the Mayor and City Clerk to execute the contract; and d) Establish a contingency of $29,000.00 (approximately 15 percent) to cover the cost of unforeseen work not included in the original contract. MISCELLANEOUS AA 14. Planning Commission Agenda for the June 23, 2016 Meeting [100-2016] Receive and file. 15. City Insurance Renewals [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) It is recommended the City Council approve premium renewals with a) CSAC-EIA for excess general liability coverage and excess workers' compensation in an amount not to exceed $1,091,465 for the period of July 1, 2016, through June 30, 2017 and b) PEPIP for all risk property, earthquake and flood coverage in an amount not to exceed $821,485 for the period of July 1, 2016, through June 30, 2017. It is important to note that although negotiations for final premiums continue through July 1, 2016, the final premium figures will meet or come in below the total amount being requested. 17. 2015 Drinking Water Quality Report on Public Health Goals [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) Receive and file. 18. Update on Water Use and Conservation Efforts May 2016 [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) Receive and file. Motion by Mayor Pro Tem Muldoon, seconded by Council Member Peotter, to approve the Consent Calendar, except for the items removed (Items 4, 13 and 16). 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 Volume 63 - Page 46 City of Newport Beach Study Session and Regular Meeting June 28, 2016 4. Resolution of Intention to Amend the Stakeholder Business Structure and Annual Assessment Levied and Resolution of Intention to Forgive Delinquent Assessments and Penalties for the Newport Beach Restaurant Association Business Improvement District (BID) [100-2016] Mayor Dixon noted she did not want to waive the $61,000 in uncollected dues and requested staff and the BID work on another collection. She suggested that a value be provided for the fee. In response to Council Member Peotter's question, Administrative Analyst Locey explained the public hearing process. Council Member Curry believed that forgiveness of the uncollectable fees and the new fee structure go together. Jim Mosher expressed concern with the fee for groceries and markets, and questioned the categories. Victoria Crocker -De Frenza requested the City Attorney read the Dine Newport Beach letter. She proposed restaurants be able to choose to participate. John De Frenza discussed his involvement in the BID. He stated more discussion and understanding was necessary and thanked Council for opening the discussions. In response to Mayor Dixon's question, Administrative Analyst Locey explained that the amendment and forgiveness would be separate items at the next meeting. Motion by Council Member Curry, seconded by Council Member Peotter, 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. 2016-81, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Amend the Stakeholder Business Structure and Annual Assessments Levied for the Newport Beach Restaurant Association Business Improvement District and Fixing the Time and Place of a Public Meeting for July 12, 2016 and a Public Hearing for August 9, 2016; and c) adopt Resolution No. 2016-82, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Forgive Delinquent Assessments and Penalties for the Newport Beach Restaurant Association Business Improvement District and Fixing the Time and Place of a Public Hearing for July 12, 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 13. Special Event Support Program FY 17 Funding Recommendations (C-8082) [38/100-2016] Council Member Duffield recused himself from Item 13 since he does business with Visit Newport Beach. Council Member Peotter proposed reducing the Film Festival funding for the second year to $115,000 and third year to $90,000. Council Member Curry indicated support for the multi-year agreement funded at the proposed levels. Volume 63 - Page 47 City of Newport Beach Study Session and Regular Meeting June 28, 2016 Motion by Council Member Curry, seconded by Council Member Petros, to authorize staff to enter a three-year grant agreement for $150,000 per year, for a total of $450,000, with the organizers of the Newport Beach Film Festival. Council Member Peotter questioned the value of the subsidy. Assistant to the City Manager Finnigan stated the City had been subsidizing the Film Festival for 16 years. Council Member Peotter suggested weaning them off. Council Member Petros took issue and believed the same logic would mean the City would stop funding the Boat Parade. He indicated the Film Festival showed a net benefit and expressed support for funding the Film Festival at the $150,000 amount for all three years. Mayor Dixon stated she would support the motion, providing notice that the subsidy would be reduced after three years. Mayor Pro Tem Muldoon indicated support for staff's recommendation. Substitute Motion by Council Member Peotter, seconded by Mayor Pro Tem Muldoon, to authorize staff to enter a three-year grant agreement for $135,000 per year, for a total of $405,000, with the organizers of the Newport Beach Film Festival. Council Member Curry discussed the positive economic impact of the Film Festival. The substitute motion failed by the following roll call vote: Nays: Council Member Peotter, Mayor Pro Tem Muldoon Ayes: Council Member Selich, Council Member Curry, Council Member Petros, Mayor Dixon Recused: Council Member Duffield The original motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Curry, Council Member Petros, Mayor Dixon Nays: Council Member Peotter, Mayor Pro Tem Muldoon Recused: Council Member Duffield Assistant to the City Manager Finnigan corrected the total in the spreadsheet to be $307,968. Motion by Council Member Peotter, 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) approve the Special Event Support recommendations for Fiscal Year 2016-2017; c) authorize staff to execute one-year grant agreements with event organizers for the Komen Orange County Race for the Cure, Newport Beach Restaurant Week and the Newport Beach Wine and Food Festival; d) approve Budget Amendment No. 17BA- 001 to transfer $8,968 from account 01020202-841046 to account 01005005-841046; e) approve waiving the Special Event Permit Fees and any City site rental fees for the Art in the Park, Library Live and the Bunnies & Books Kids Festival events; and f) approve changes to the Special Event Support Program, as detailed in the staff report. Jim Mosher expressed his view of the difference between the Film Festival and Boat Parade. Assistant to the City Manager Finnigan explained the proposal to waive fees for City supported events. Volume 63 - Page 48 City of Newport Beach Study Session and Regular Meeting June 28, 2016 The motion carried by the following roll call vote: Ayes: Council Member Peotter, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Recused: Council Member Duffield 16. Donation of the Sculpture Sphere 112 to the City of Newport Beach [100-20161 Council Member Selich suggested referring the matter back to the City Arts Commission to provide recommendations on alternative locations. Motion by Council Member Selich, seconded by Council Member Petros, to refer this matter to the City Arts Commission. Council Member Peotter requested the City Arts Commission consider the current location in its recommendation. Carmen Smith, President of the Newport Beach Arts Foundation, discussed efforts to donate the sculpture. She stated she understood the purpose of rotating sculptures in the park. She suggested the sculpture serve as the anchor, and encouraged the City to accept the piece. Mayor Dixon asked if there would be a total of 21 pieces. Library Services Director Hetherton reported the first ten would be de -installed in August. 14W The motion carried by the following roll call vote: 4 Ayes: Council Member Peotter, Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon XIV. PUBLIC COMMENTS ON NON -AGENDA ITEMS Richard Sungaila discussed the Affirmatively Furthering Fair Housing Rule, and expressed concern if the City were forced to have public housing. He urged Council to retain local control. XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None XVI. CURRENT BUSINESS 19. Newport Heights Sewer Improvements — Award of Contract No. 7028-2 (17503) [38/100- 20161 Public Works Director Webb presented the staff report. Council Member Petros stated he was pleased that the project was underway. 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 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 plans and specifications; c) award Contract No. 7028-2 to Mike Prlich and Sons, Inc. for the total bid price of $1,575,377.00, and authorize the Mayor and City Clerk to execute the contract; d) establish an amount of $158,000.00 (approximately 10 percent) to cover the cost of unforeseen work not included Volume 63 - Page 49 City of Newport Beach Study Session and Regular Meeting June 28, 2016 in the original contract; and e) approve Budget Amendment No. 16BA-044 appropriating $612,100.00 from the Wastewater Capital unappropriated fund balance to Account No. 71201- 980000-17503 (Sewer Main Lining and Repairs project). Jim Mosher discussed the sewer lateral. Public Works Director Webb stated the project would be in the public right-of-way. 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 20. Appointments to Boards and Commissions [100-20161 Mayor Dixon requested the Civil Service Board be heard first. City Clerk Brown explained the voting process. Mik Jim Mosher referenced City Council Policy A-2 (Board, Commission and Committee Appointments), discussed Council waivers of the Policy, and believed the process was flawed. City Clerk Brown explained that City Council Policy A-2 required the Council Ad Hoc Appointments Committee to nominated two people per vacant seat and that the committee fulfilled their duties. City Attorney Harp added that it was appropriate for Council to waive City Council Policy A-2. Dorothy Kraus urged Council to appoint Erik Weigand. She noted Debra Stevens was overlooked for nomination, requested Council reconsider the candidate list for Planning Commissioners, and suggested that Ms. Stevens fill the second seat. Motion by Council Member Selich, seconded by Council Member Petros, to waive City Council Policy A-2 relative to requiring that the nominees be submitted two (2) weeks before the date of appointment. 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 Council Member Selich placed Jennifer Van Bergh on the nomination list for the City Arts Commission. In response to Council Member Peotter's question, City Clerk Brown explained the makeup of the Civil Service Board. Council Member Curry discussed the difficulty in the nomination process. He suggested adding Tim Brown, Tim Stoaks, and Debra Stevens to the list of potential Planning Commission nominees. City Clerk Brown read the ballot votes for the Civil Service Board as follows: Robyn Grant — Curry, Selich, Muldoon, Dixon Jane Della Grotta — Petros, Muldoon, Dixon Douglas Coulter — Peotter, Duffield, Petros Douglas Wood — Peotter, Duffield, Curry Sharon Wood - Selich Volume 63 - Page 50 City of Newport Beach Study Session and Regular Meeting June 28, 2016 City Clerk Brown announced that Robyn Grant was appointed to the Civil Service Board for a four year term. City Clerk Brown reported that a second vote would be cast between Jane Della Grotta, Douglas Coulter, and Douglas Wood. City Clerk Brown read the ballot votes for the Civil Service Board as follows: Jane Della Grotta - Petros Douglas Coulter Douglas Wood — Peotter, Duffield, Selich, Curry, Muldoon, Dixon City Clerk Brown announced that Douglas Wood was appointed to the Civil Service Board for a four year term. City Clerk Brown read the ballot votes for the Board of Library Trustees as follows: Douglas Coulter -Peotter, Curry, Selich, Duffield 40� David Sheffner — Petros, Muldoon, Dixon Paul Watkins — Peotter, Curry, Petros, Selich, Duffield, Muldoon, on City Clerk Brown announced that Douglas Coulter was appointed to the Board of Library Trustees for a term ending June 30, 2017, and Paul Watkins was appointed to the Board of Library Trustees for a four year term. City Clerk Brown read the ballot votes for the Building and Fire Board of Appeals as follows: Khorow (Saum) Nourmohammadi (Nour) — Peotter, Duffield, Muldoon, Selich, Curry, Petros, Mayor Dixon Rolly Pulaski — Peotter, Duffield, Muldoon, Selich, Curry, Petros, Mayor Dixon City Clerk Brown announced that Khorow (Saum) Nourmohammadi (Nour) and Rolly Pulaski were appointed to the Building and Fire Board of Appeals for four year terms. City Clerk Brown read the ballot votes for the City Arts Commission as follows: Michelle Bendetti — Peotter, Duffield, Muldoon, Selich, Curry, Petros, Mayor Dixon Leigh Donaldson — Peotter, Duffield Lesley Miller - Dixon Jennifer Van Bergh — Curry, Petros, Selich, Muldoon City Clerk Brown announced that Michelle Bendetti and Jennifer Van Bergh were appointed to the City Arts Commission for four year terms. City Clerk Brown read the ballot votes for the Harbor Commission as follows: Paul Blank — Peotter, Duffield, Muldoon, Selich, Curry, Petros, Mayor Dixon City Clerk Brown announced that Paul Blank was reappointed to the Harbor Commission for a four year term. City Clerk Brown read the ballot votes for the Parks, Beaches and Recreation Commission as follows: Volume 63 - Page 51 City of Newport Beach Study Session and Regular Meeting June 28, 2016 David Granoff — Peotter, Petros, Duffield, Muldoon, Dixon Shelly Trainor — Curry, Selich City Clerk Brown announced that David Granoff was appointed to the Parks, Beaches and Recreation Commission for a four year term, City Clerk Brown read the ballot votes for the Planning Commission as follows: Bill Dunlap — Peotter, Duffield, Muldoon, Dixon Erik Weigand — Peotter, Duffield, Muldoon, Selich, Curry, Petros, Mayor Dixon Tim Brown — Petros, Selich Tim Stoaks — Curry City Clerk Brown announced that Erik Weigand was reappointed and Bill Dunlap was appointed to the Planning Commission for four year terms. Mayor Dixon thanked the citizens who submitted applications and applied to serve the City. S21.Civic Center Audit - Status Report [100-2016114 Mayor Dixon explained the purpose of the audit. Allyson Gipson, Harris & Associations, presented a 'Vroint presentation recapping the Civic Center Project close-out audit, including auditor selection, focus of the audit, audit process, challenges, preliminary findings regarding program management services, budget control, procurement practices, and other comments and recommendations. Council Member Petros believed that staff should have written the staff report rather than the consultant. He requested a summary of the 11 recommendations, reiterated that the report stated that the project came in at a fair and reasonable cost, and requested typographical and grammatical errors be corrected in the final document. He stated the costs were well within the contingency, and agreed that procurements could be improved. He suggested stating that the project was used by the community and a fair value was reached as loudly as the discussion of the issues. In response to Council Member Curry's question, Derek Hennessey, R. W. Block Consulting, Inc., confirmed that the $1.2 million was due to construction manager at risk over -billing and process flaws. Council Member Curry noted $1.2 million was 8/10 of 1% of the total project cost. He discussed the process of finalizing the draft report. Mr. Hennessey discussed drawing on project contingency rather than requesting additional budget for the library windows. He indicated that adding additional scope and square footage to the project was not explained. Council Member Curry discussed efforts to move the project along quickly. Mr. Hennessey believed more could have been done on design and construction reviews, noting that the project was bid with 75% construction documents. Council Member Curry stated the project moved faster than the designers could design which created change orders, but allowed the benefit of the construction market. Mr. Hennessey stated that the process drove a higher contingency. Council Member Curry stated the report summarized that the project costs were not unreasonable and City Hall and garage costs were not unreasonable. Mr. Hennessey discussed analysis of C.W. Driver accounting. Council Member Curry believed the draft should have had more review prior to coming to Council. In response to Mayor Pro Tem Muldoon's question, Ms. Gipson explained that the draft report was presented to provide a status check. She stated incomplete documentation created a challenge in conducting the audit. Mr. Hennessey added that the City did not have payment application documents. Mayor Pro Tem Muldoon discussed the debate over whether or not to conduct an audit. Volume 63 - Page 52 City of Newport Beach Study Session and Regular Meeting June 28, 2016 Mayor Pro Tem Muldoon suggested instructing the City Attorney to pursue the $1.2 million or obtain documentation to support the expense. Council Member Peotter reported that Council asked that staff not write the report. He stated he did not see a comparison of project costs to other similar projects. Ms. Gipson emphasized that the City's project was unique for city halls. Council Member Peotter discussed his experience in documenting projects. Ms. Gipson stated there was a distinction between design documents, but there were other areas where there was a conflict with final documents. Mr. Hennessey added they had a record set of as -built drawings and bulletins. He stated the $1.2 million was obtained by reviewing C.W. Drivers' accounts payable records. He stated the final cost was $116.8 million with a $1.2 overage. He clarified that the GMP value was obtained from the original contract value and added all amendments. He stated C.W. Driver transitioned from program manager to construction manager at risk. Ms. Gipson explained the process for bringing a construction manager at risk on board. Council Member Peotter stated a program manager usually oversaw the construction manager at risk but it was the same company. Ms. Gipson explained the difference between a construction manager and a construction manager at risk. Council Member Peotter discussed the risk to C.W. Driver. He noted the price was adjusted as the project went along and that the City assumed that the project manager would have retained the document sets. He reviewed the total project cost summary and $2.399 million hard cost subtotal left out of the budget. Mr. Hennessey stated the $2.3 million were hard costs. City Manager Kiff stated it should have been included in the cost of the project. He explained the Civic Center COPs and the Facilities Financing Plan. He reported that all IT and furniture purchases were stopped prior to the move. Council Member Peotter asked whether change orders were compared to the original scope. Mr. Hennessey stated the original request for proposals were not provided, therefore a comparison could not be conducted. Council Member Peotter pointed out that the limited documentation prohibited a full review. City Manager Kiff stated it appeared that the Library's COP refinancing was included in the project financing. Mr. Hennessey stated the data was provided on a spreadsheet and could be modified. City Manager Kiff believed the $1.3 million was the cost of issuance and $3.5 million was for library refinancing. Council Member Peotter expressed embarrassment that the project did not have appropriate documentation. ® ,W In response to Council Member Curry's question, Ms. Gipson discussed Table 6 and stated the estimates came early in the project. She explained the process of value engineering and stated the documentation did not provide information on the use of value engineering for the project. City Manager Kiff stated he recalled vast discussions on how to scale back the project. Council Member Peotter believed there were no comparable city halls because everything was top of the line. He asked if there was documentation on selection of subcontractors and normalization. Ms. Gipson stated there was no documentation. Regarding Table 10, Ms. Gipson stated the 22,000 additional square feet increased price, rather than considering it as scope creep. Mr. Hennessey discussed some of the missing documentation. City Manager Kiff stated he would verify the City had appropriate as -built records. Ms. Gipson discussed requests for information due to starting the project prior to 100% completed documents. She explained change orders versus field orders. She stated a construction manager at risk made sense for delivery method but the procurement was not well executed. In response to Council Member Peotter's question, Mr. Hennessey recalled one back charge to the architect. Volume 63 - Page 53 City of Newport Beach Study Session and Regular Meeting June 28, 2016 In response to Council Member Curry's question, Mr. Hennessey explained the initial conclusion was that the issues did not arise due to the program manager and construction manager at risk being in conflict. Council Member Curry questioned the cost for a separate construction manager. Ms. Gipson stated the City had contracts for program management and construction manager at risk. Mayor Dixon stated the City paid for a program manager and construction manager at risk and believed it did not get its money's worth. She asked if there was value in further reviewing the change orders. Ms. Gipson stated the review provided an overview of process. Mayor Dixon asked if the City had paid more than the invoices. Ms. Gipson explained that the payment applications should match the invoices. Mayor Dixon expressed surprise that C.W. Driver did not appropriately maintain paperwork. She discussed the items listed for opportunity for improvement and stated there were lessons to be learned. She suggested establishing policies for project management. She encouraged the public to read the report. Council Member Curry suggested allowing staff and C.W. Driver the opportunity to respond to the draft report. Council Member Peotter stated the change orders were paid on estimates rather than actual costs. He suggested drilling down on the change orders. Mr. Hennessey stated the change orders had supporting documentation, some based on actual costs and some based on estimates. He stated a significant portion of the dollar value of the change orders was sampled. He explained forward pricing. City Attorney Harp stated C.W. Driver had indicated it provided all its documentation. Mayor Dixon requested starting the process to recover the $1.2 million. Motion by Mayor Dixon, seconded by Mayor Pro Tem Muldoon to a) adopt the preliminary report; b) direct consultants to complete the final report; and c) direct the City Attorney to pursue collection of the $1.2 million discrepancy. Jim Mosher questioned how the summary was prepared without the body of the report. He discussed the dispute over closing costs and determination to pay the bill rather than litigate. He discussed footnote 6 on page 21-11 and asked why the City Attorney did not review the laws. He requested information on the City Council Ad Hoc Building Committee's role in the project. City Attorney Harp stated the review of laws had been completed and he would work with the consultant to clarify or remove the footnote. Council Member Petros stated he would not support the motion because it was inappropriate to adopt a draft report. He suggested directing the consultant to complete their work. The 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 XVII. MOTION FOR RECONSIDERATION - None Motion by Council Member Selich, seconded by Mayor Pro Tem Muldoon, to bring back Item 28 [Irvine Avenue Pavement and Median Rehabilitation — Award of Contract No. 5869 (151116)] from the June 14, 2016 City Council meeting for reconsideration at a future meeting. Volume 63 - Page 54 City of Newport Beach Study Session and Regular Meeting June 28, 2016 The motion carried by the following roll call vote: Ayes: Council Member Duffield, Council Member Selich, Council Member Curry, Council Member Petros, Mayor Pro Tem Muldoon, Mayor Dixon Nays: Council Member Peotter XVIII. ADJOURNMENT - 10:51 p.m. 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 June 23, 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 June 24, 2016, at 3:05 p.m. A" Volume 63 - Page 55