MOORLACH UPDATE — Thank You Newport Beach — December 12, 2014

It’s been another fun and busy week. The Newport Beach Independent provides the details of Tuesday night’s Newport Beach City Council meeting in the first piece below. I had the privilege of thanking the four city council members that I had the honor to serve with these past four and eight years. Every city in the Second District is unique and has different issues and interactions with the County. For Newport Beach, unique issues included John Wayne Airport, in particular the lengthy process for achieving a successful extension of the settlement agreement and the building of the Terminal C and parking improvements. Other matters included the Orange County Sheriff’s Department’s Harbor Patrol and the Upper Newport Bay Watershed. The annexation of West Santa Ana Heights was momentous, and it included the wind down of the Santa Ana Heights Redevelopment Agency (long before redevelopment agencies were terminated), debates over a potential horse trail on Mesa Drive, the opening of a new park and fire station, the paving of Kline Drive, and the improvements to Irvine Boulevard. The annexation of the Emerson Island. I could go on, but I’ll spare you from the voluminous links to previous MOORLACH UPDATES covering these and other activities over the past eight years. It is safe to say that I had a number of fun interactions with the City’s two city managers and its council members during my tenure.

I want to thank Rush Hill, Nancy Gardner, Michael Henn, and Leslie Daigle for their friendship and professionalism in our mutual activities. It was an honor to serve with them. I also want to congratulate the incoming councilmembers, Kevin Muldoon, Marshall Duffield, Scott Peotter, and Diane Dixon. Congratulations also go to Ed Selich, on his selection as the new Mayor. And I want to thank Keith Curry and Tony Petros for their past and future leadership roles for this amazing city. I apologize to the new city council for not being able to stay for the entire meeting, as I had another commitment at the Balboa Bay Club, where I was very kindly recognized for my twenty years of public service by the Lincoln Club of Orange County.

The second piece is from the OC Register and it covers an item that was continued from Tuesday’s Board of Supervisors meeting. The reason given in the article for the continuance is not correct. There is a provision that requires the Clerk of the Board to notice certain parties when a particular topic is going to be covered by the Board of Supervisors. Apparently, this required courtesy was overlooked by the Clerk of the Board and it was determined that the matter should be continued in order to provide the required notification. Since the two items were automatically continued and could not be addressed, I mentioned in my Board Comments that I had attended the September meeting of the Audit Oversight Committee and had to observe the Director of OC Public Works explain why he had not followed up with the audit recommendations concerning the Department’s fee structure. I believe it was the first time that I observed this committee call a Department Head on the carpet for not correcting an Internal Audit Department audit report observation. Director Shane Silsby was brave enough to state to the committee that it is difficult to bring fee increases to the Board of Supervisors. So I challenged next year’s Board to address this odd conundrum in order to give staff some guidance on whether to reduce taxpayer subsidies for certain services by raising fees, leave them in place just as they are in perpetuity (some not having been increased since 1985), or strike a balance. Such are the joys of being elected to an executive, and not necessarily a legislative, position.

New City Council Takes Office

By Sara Hall

The new City Council members got down to business quickly at Tuesday’s City Council meeting, each one calling for some kind of action, just moments after they were individually sworn in.

The new council team also unanimously voted Ed Selich in as mayor and new member Diane Dixon as mayor pro tem.

“I pledge to lead this council in openness, respect and equanimity,” Selich said.

The four newbies on the dais, self-dubbed “Team Newport” during the campaign, each directed staff on several different issues during council announcements to be placed on the agenda for the next meeting on Jan. 13.

Councilman Kevin Muldoon directed staff to examine the options to repeal the fee increase for residential docks, including the seizing of property without just compensation and restrictions on the transfer of ownership.

He also asked staff to return with a proposed scope of an audit for the tidelands fund to be sent to RFP. It should include the source of funds and expenditures by area, like beach versus harbor, for the past 10 years.

Councilman Marshall Duffield proposed a tidelands audit of all the income and expenses.

“This is not a witch hunt,” Duffield said. “It’s just to inform me, all of us, better to discuss the various sources of revenue that comes into the harbor and expenses.”

Councilman Scott Peotter asked staff to look into bringing back wood burning fire rings, eliciting some applause.

“Coming up with a scheme that will keep the [California) Coastal Commission happy and AQMD [Air Quality Management District] happy at the same time,” Peotter said.

He also suggested replacing the finance committee with a seven member finance commission and an updated resolution about what can and can’t be said in an invocation.

Dixon asked for a project completion close out audit on the civic center.

“So that we may identify lessons learned and put this matter to rest to the satisfaction of the voters,” Dixon said.

She also proposed a resolution that would recognize state senator Mimi Walters for her service and congratulate her on her election to the U.S. House of Representatives.

All eight incoming and outgoing council members said a few words about their time on council or their election to council, thanking supporters and the state of the city.

Exiting councilman Mike Henn called the moment “bittersweet.” He is proud of what the council had accomplished over the past eight years, he said.

They’ve tackled every tough issue that needed to be tackled, Henn said.

“We never kicked the can down the road on a single problem to leave a mess for somebody else,” he said.

“We have honored the long tradition in Newport Beach of all of the councils that have preceded us that we have left the city in a better state than we inherited it,” Henn said.

“I leave office, at this time, with gratitude and appreciation for the privilege to serve the people of this great city,” said outgoing Councilwoman Leslie Daigle.

Departing Councilwoman Nancy Gardner kept it short and sweet. She will miss the people the most: Residents, staff, and her colleagues.

“And now it’s on to my next excellent adventure, whatever that may be,” she said.

Outgoing Mayor Rush Hill agreed with Gardner.

“It is the city family that I will miss most as I leave the council,” Hill said. “My fellow council members and the dedicated and loyal staff from top down that collectively delivers what may each define slightly differently, but consistently, as our quality of life.”

Hill choked up as he thanked his family, among many others, who supported him during his time on council.

“It’s been a privilege to serve with this council,” Hill said. “It’s been an honor to serve as your mayor.”

Several of the council members mentioned projects or plans completed during their time on council, including Oasis Senior Center, Bicycle master Plan, AAA credit rating, several parks and more.

“I think together we have made a difference in a positive direction for the benefit of our 87,000 residents,” Hill said.

“New leadership is ready to take over,” Hill said. “The decision will be theirs to either continue the momentum that exists through well thought-out strategic plans or risk disrupting the delicate balance of funding that produces a high quality of life and losing a highly motivated and productive delivery team. The burden is now theirs to perform for the good of us all ”

The civic center was at one point compared to the Eiffel Tower by Councilman Keith Curry.

Hill has been a tremendous leader who made tremendous accomplishments, including the Newport Dividend, Curry said.

Through Hill’s leadership, the civic center became something that people from around the world come to see and marvel at, Curry continued.

“You took a little bit of heat for that in this election,” he said to Hill.

About 125 years ago Charles Garnier represented the Committee of 300, he said.

“This was sort of the reform resident’s group of his time,’ Curry explained.

They protested against the “useless and monstrous” Eiffel Tower, Curry noted.

There are many other iconic structures have “short-sighted” critics, he added.

“Everybody in this room tonight knows who Gustave Eiffel was, but until I mentioned his name not a single person had ever heard of Charles Garnier and by the time they get home tonight nobody will remember him again,” Curry said as the audience chuckled. “That’s the way it is with the critics and that’s the way it’s always been. Such as the legacy you leave for future generations here in Newport Beach.”

Presentations, congratulations and awards were also handed out by city staff, Supervisor John Moorlach, Assemblyman Don Wagner, on behalf of Assemblyman Allan Mansoor, on behalf of Congressman Dana Rohrabacher, and more.

Later, during the Newport Beach Chamber of Commerce hosted Mayor’s Reception at Back Bay Bistro, all of the outgoing and incoming council members spoke again.

The chamber event also honored a few award winners.

Ambassador of the Year Award was given to Shani Moslehi from Shani Moslehi Productions, and Sabrina Little from First Team Estates.

The Silver Anchor Award was presented to Sheldon Singleton from Social Zing, Kay Walker from Kay Walker, Esq., and Chandler Bell from Hornblower Cruises & Events.

The new members of council also got an opportunity to speak during the council meeting.

Dixon thanked everyone who voted “for change, transparency, fiscal restraint, civility in our city government.”

“You spoke, the city listened,” Dixon said.

It’s fun to be up on the dais for the first time in the “Taj Ma-City-Hall,” with all the bunnies watching, Peotter said.

Although the city is in good shape, there is still work to be done, he said.

“We’ve got some areas that we need to tweak and turn around,” Peotter noted.

“The city is quite daunting,” Duffield said. It’s very complex, he added. “I will do my best.”

It’s an honor, Muldoon added. He looks forward to serving the people by protecting private property rights, strengthen public safety and reduce local taxes and fees.

“I hope that we’re able to work together in a collaborative way to put the city first,” Muldoon said.

Selich also said a few words after being elected mayor.

He took a moment to thank the outgoing council members, part of what he called the “Dream Team.”

Now the remains of the “Dream Team” will merge with “Team Newport,” Selich said.

He predicts great success for the council and sees some group hugs in the future, he said.

After the contentious campaign season, that had some “spirited and lively” debates, the voters have spoken, Selich noted.

“It’s now time to get down to the business of governing our city,” Selich said. “Although there may be different points of views on some issues, I believe that all of us up here have the best interest of our city and its residents at heart. I believe we will do, as Newport Beach city councils past have always done, and that is come together to make our city even better.”

County delays building fee increases

Industry leaders warn that the proposed hike could have dire economic consequences.


Strong outcry from homebuilders prompted Orange County leaders on Tuesday to postpone considering a major fee increase that housing industry leaders warn could have dire economic consequences.

The Board of Supervisors now is set to consider the fees on Feb. 3. But it’s unclear if the proposed increases will match what was initially planned for Tuesday’s meeting: OC Public Works officials requested the delay so they could talk with the developers who have outlined the potential catastrophe of substantial fee increases.

The delay came after housing industry officials described their surprise and fear over the timing and size of the proposed increases in letters submitted to the board.

Tim Kane, president of MBK Homes, wrote that his company recently committed to purchasing property from Rancho Mission Viejo, where 14,000 new homes are to be built, without knowing about the proposed increases. He warned that increases “will greatly impact the viability of this project.”

It was enough to sway county staff: They’ll be meeting with housing industry officials to prepare a new proposal for the February meeting.

The swift outcry from housing officials highlights what Supervisor John Moorlach described as “an interesting conundrum.” He and Chairman Shawn Nelson cited a report from the Audit Oversight Committee that described the Public Works fees as not covering the cost of services.

“That oversight committee is a hammer that was put together to keep us all awake and prevent what happened 20-plus years ago during the bankruptcy,” Nelson said. “To not vote to support full-cost recovery puts our financial status in jeopardy, and it’s a real problem.”

CONTACT THE WRITER: 949-492-5122 or  .

Disclaimer: You have been added to my MOORLACH UPDATE communication e-mail tree. In lieu of a weekly newsletter, you will receive occasional media updates, some with commentary to explain the situation, whenever I appear in the media (unless it is a duplication of a previous story).

I have two thoughts for you to consider: (1) my office does not usually issue press releases to get into the newspapers (only in rare cases); and (2) I do not write the articles, opinions or letters to the editor.

This message should appear at the bottom of every e-mail you receive. If these e-mails should stop arriving in your mail box, it will be because your address has changed and you did not provide a new one. If you do not wish to receive these e-mails, then please e-mail back and request to unsubscribe.