S29.        PROPOSED GRANT AGREEMENT BETWEEN THE CITY AND THE AIRPORT
             WORKING GROUP (AWG) WITH REPORT FROM THE CITY MANAGER
             AND THE CITY ATTORNEY.
 
             City Attorney Burnham stated that at the City Council meeting on March 27, 2001,
             grant agreements with Citizens for Jobs and the Economy (CJE) and the Airport
             Working Group (AWG) were approved.  These funds were to be used to conduct
             a public education program related to possible solutions to the current and future
             air transportation needs of the County.  He stated that staff is recommending that
             the process be modified to terminate the grant with CJE and grant the funds solely
             to AWG.
 
             Motion by Council Member Glover to approve the following recommendations of
             the Airport Issues Committee:  authorize the Mayor to execute the proposed grant
             agreement between AWG and the City of Newport Beach, as amended; terminate
             the Grant Agreement between CJE and the City of Newport Beach that is dated
             March 28, 2001; and retain Dana Reed of Reed and Davidson and Fred Woocher
             of Strumwasser and Woocher to act as special counsel pursuant to the grant
             agreement and direct staff to notify AWG that special counsel has been retained.
 
             Laura Dietz, 325 Cameo Shores Road, asked what the funds could be used for,
             given that they can’t be used for any political ballot measure.  City Attorney
             Burnham stated that a statute prohibits the use of taxpayer dollars to support or
             oppose the qualification, passage or defeat of a ballot measure.  The funds,
             however, can be used to educate the public on various issues.  He stated that the
             grant agreement requires two attorneys to review any material before it is
             duplicated and disseminated to the public.  Ms. Dietz asked if the two attorneys
             and the City Council would be the only ones to look at the material.  City Attorney
             Burnham stated that the two attorneys would only be reviewing the material to
             determine if it can be funded with taxpayer dollars.
 
             Council Member Heffernan stated that he opposes the City funding AWG, but
             supports the expenditure of money for public education.
 
             The motion carried by the following roll call vote:
 
             Ayes:          O’Neil, Ridgeway, Glover, Proctor, Bromberg, Mayor Adams
             Noes:         Heffernan
             Abstain:   None
             Absent:     None