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HomeMy WebLinkAbout01/17/2019 - Planning CommissionNEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS —100 CIVIC CENTER DRIVE THURSDAY, JANUARY 17, 2019 REGULAR MEETING — 6:30 P.M. CALL TO ORDER — The meeting was called to order at 6:30 p.m. PLEDGE OF ALLEGIANCE — Chair Zak III. ROLL CALL VII. PRESENT: Chair Peter Zak, Vice Chair Erik Weigand, Secretary Lee Lowrey, Commissioner Curtis Ellmore, Commissioner Lauren Kleiman, Commissioner Peter Koetting, Commissioner Kory Kramer ABSENT: None Staff Present: Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Deputy City Attorney Armeen Komeili, City Traffic Engineer Tony Brine, Police Civilian Investigator Wendy Joe, Associate Planner Makana Nova, Administrative Support Specialist Tiffany Lippman PUBLIC COMMENTS None REQUEST FOR CONTINUANCES None CONSENT ITEMS ITEM NO. 1 MINUTES OF DECEMBER 6, 2018 Recommended Action: Approve and file Motion made by Vice Chair Weigand and seconded by Commissioner Koetting to approve the minutes of the December 6, 2018 meeting with Mr. Mosher's revisions. AYES: Zak, Weigand, Lowrey, Kleiman, Koetting, Kramer NOES: None ABSTAIN: Ellmore ABSENT: None PUBLIC HEARING ITEMS ITEM NO. 2 Policy L-6 Waiver, Fischer Residence (PA2018-281) Site Location: 3725 Ocean Boulevard Summary: A request to waive City Council Policy L-6 to install private improvements (associated with the construction of a single-family residence) within the Ocean Boulevard public right-of-way consisting of stairs, a concrete retaining wall, planter walls, and pilasters. Recommended Action: 1. Conduct a public hearing; 2. Find the project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303(a) (New Construction or Conversion of Small Structures) of the CEQA Guidelines, because it has no significant effect on the environment; 1 of 6 NEWPORT BEACH PLANNING COMMISSION 01/17/2019 3. Waive City Council Policy L-6, Encroachments in Public Rights -of -Way, to install non- compliant private improvements consisting of stairs, retaining walls, planter walls and pilasters that encroach into the Ocean Boulevard public right-of-way, contingent upon all conditions of the Encroachment Permit process being met; and 4. Adopt Resolution No. PC2019-001 waiving City Council Policy L-6 and approving Encroachment Permit No. N2018-0496. Deputy Community Development Director Campbell reported the proposed improvements were part of a variance application approved by the Planning Commission in 2011. The City Council also approved the variance application; however, the approval lapsed. Because of amendments to Policy L-6, the matter is before the Planning Commission. The applicant proposes improvements identical to those approved in 2011. In response to Commissioners' questions, Deputy Community Development Director Campbell advised that the Ocean Boulevard right-of-way is very wide; therefore, the applicant proposes improvements that staff cannot approve administratively. City Traffic Engineer Tony Brine suggested the approval lapsed because the property owner failed to construct the improvements within the one-year time period. Commissioners reported no ex parte communications. Chair Zak opened the public hearing. Mr. Mosher opined that the matter should be before the Parks, Beaches and Recreation Commission rather than the Planning Commission as the City Charter indicates use of the public right-of-way falls within the purview of the Parks, Beaches and Recreation Commission. He questioned whether the applicant was expected to compensate the City for the use of the right-of-way and, if so, the amount. Chair Zak closed the public hearing. In answerto Commissioners' queries, City Traffic Engineer Brine related that staff would work with the applicant to draft the encroachment agreement, which will not be presented to the Planning Commission for review. The applicant will pay a one-time permit fee but no annual or ongoing fee. Liability issues will be addressed in the encroachment agreement. Motion made by Commissioner Koetting and seconded by Secretary Lowrey to find the project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303(x) of the CEQA Guidelines; waive City Council Policy L-6, Encroachments in Public Rights -of -Way; and adopt Resolution NO. PC2019-001 waiving City Council Policy L-6 and approving Encroachment Permit No. N2018-0496. AYES: Zak, Weigand, Lowrey, Ellmore, Kleiman, Koetting, Kramer NOES: None ABSTAIN: None ABSENT: None ITEM NO. 3 Great Mex Grill MUP for Type 47 License (PA2018-169) Site Location: 703 Balboa Boulevard Summary: A minor use permit to amend UP3031 to allow a Type 47 (On Sale General) alcoholic beverage license and to allow earlier hours of operation at an existing food service establishment. Great Mex Grill Restaurant currently operates with a Type 41 (On Sale Beer and Wine) alcoholic beverage license with hours of operation from 10:00 a.m. through 10:00 p.m., daily. The appplication includes a request for an earlier opening hour for breakfast service but no late hour operations (after 11:00 p.m.) are requested. No physical changes to the food service establishment are proposed. If approved, this minor use permit would supersede UP3031. Recommended Action: 1. Conduct a public hearing. 2 of 6 NEWPORT BEACH PLANNING COMMISSION 01/17/2019 2. Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines because it has not potential to have a significant effect on the environment; and, 3. Adopt Draft Planning Commission Resolution No. PC2019-002 approving Conditional Minor Use Permit No. UP2018-011. Associate Planner, Makana Nova, reported the restaurant is located in Balboa Village. The parcel is zoned MU -V (Mixed -Use Vertical) and contains a two-story single-family residence and the restaurant. Use Permit No. UP1515 authorized construction of the single-family residence. Use Permit No. UP3031 authorized a take- out eating and drinking establishment with on -sale beer and wine service and waived all required off-street parking spaces. In addition to requesting a Type 47 license, the applicant requests an expansion of the hours of operation to 7:00 a.m. to 10:00 p.m. daily. The applicant does not propose any physical improvements to the existing establishment, which contains 403 square feet in net public area and 25 seats. The establishment does not have a physical bar for alcohol service. Staff recommends limiting the hours for alcohol service to 11:00 a.m. to 10:00 p.m. and prohibiting the applicant from providing a physical bar for alcohol service. The applicant requests limiting the hours for alcohol service to 10:00 a.m. to 10:00 p.m. In reply to Commissioners' inquiries, Deputy Community Development Director Campbell indicated a proposed Balboa Village parking overlay does not affect the application. Associate Planner Nova advised that the Police Department's recommendations are part of the draft resolution. Commissioner Koetting suggested the Commission add a condition of approval to prohibit outside tables and outside table service. Associate Planner Nova related that outside seating is not permitted in the right-of-way. Commissioner Kleiman suggested an additional condition of approval prohibiting the service of alcohol without food. Community Development Director Jurjis reported the restaurant has to sell more food than alcohol as required by the Type 47 license. The Police Department and California Department of Alcoholic Beverage Control (ABC) can review the restaurant's books to determine if violations have occurred. Commissioner Kleiman clarified that the condition of approval would prohibit any customer from purchasing alcohol without food. Commissioners reported no ex parte communications. Pat Brown, applicant's consultant, related that ABC limits the amount of alcohol sales to a percentage of total sales. The applicant does not oppose Commissioner Kleiman's proposed condition of approval. Alcohol sales at the applicant's restaurants average 15-25 percent of total sales. He requested alcohol service be allowed from 10:00 a.m. to 10:00 p.m. because the restaurant serves mostly families and take-out food. The police investigation found no problems with alcohol service since 2002, when the applicant took control of the restaurant. The applicant agrees with the condition of approval to retain security video for 30 days. In answer to Commissioners' questions, Mr. Brown reported most alcohol service would be margaritas and beer. Most of Mr. Alonzo's other restaurants have licenses for beer and wine. Soft drinks are located in coolers at the front, but beer and wine are located at the rear of the restaurant. Chair Zak opened and closed the public hearing without comment from the public. Motion made by Commissioner Kramer and seconded by Commissioner Ellmore to find the project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines; and to adopt Resolution No. PC2019-002 approving Conditional Minor Use Permit UP2018-011 with modifications to allow alcohol service from 10:00 a.m. to 10:00 p.m. and to prohibit outside tables and outside table service. In response to Vice Chair Weigand's question, Police Civilian Investigator Wendy Joe reported the Police Department could accept allowing alcohol service to begin at 10:00 a.m. because few arrests for DUI occur at that time of day. AYES: Zak, Weigand, Lowrey, Ellmore, Kleiman, Koetting, Kramer NOES: None ABSTAIN: None ABSENT: None 3 of 6 NEWPORT BEACH PLANNING COMMISSION 01/17/2019 ITEM NO.4 Hoag Development Agreement (PA2018-024) Site Location: 1 Hoag Drive Summary: An amendment to a Development Agreement between the City of Newport Beach and Hoag Memorial Hospital Presbyterian to extend the term of the agreement. Recommended Action: 1. Conduct a public hearing; 2. Find all significant environmental concerns for the proposed project have been addressed in a previously certified Final Environmental Impact Report (EIR) and Supplemental EIR, and that the City of Newport Beach intends to use said document for the above noted project, and further that there are no additional reasonable alternative or mitigation measures that should be considered in conjunction with said project; and 3. Adopt Resolution No. PC2019-003 recommending City Council adoption of Development Agreement No. DA2018-004 amending Amended and Restated Development Agreement No. 5 to extend the term of the agreement by six (6) months. Commissioner Ellmore recused himself from the item as he serves on an advisory board for Hoag Hospital Foundation Irvine, and the Fair Political Practices Commission (FPPC) has not issued an opinion regarding the issue. Deputy Community Development Director Campbell reported Hoag Hospital operates pursuant to a Development Agreement. Hoag Hospital and staff seek a six-month extension of the existing Development Agreement, which expires in March 2019, in order to negotiate the terms and conditions under which the Development Agreement can be extended for a longer period of time. The City Council has to approve a modest extension prior to the Development Agreement's expiration in March 2019. In reply to Commissioners' inquiries, Deputy Community Development Director Campbell explained that staff wanted to complete the Development Agreement annual review prior to presenting the request for an extension. The noise monitoring and analysis required by the Development Agreement was delayed, which caused a delay in the annual review process and in presenting the request for an extension. The application to extend the Development Agreement proposes a 25 -year term; however, negotiations included a 12 -year extension and a 10 -year extension. At the time the staff report was written, the application had not been amended to revise the 25 -year extension. In response to the staff report, Hoag Hospital provided a letter officially amending the application to reflect a 10 -year extension. Under the terms of the Development Agreement, approximately 458,000 square feet of development remains to be built. Hoag Hospital seeks additional time to complete the build -out of its campus. The Development Agreement provides Hoag Hospital with the vested right to proceed with development consistent with the planned community zone and mitigation measures. The Development Agreement requires traffic analyses, trip generation analyses, and parking analyses before construction of any project. Staff is comfortable that all analytical steps will be performed prior to any construction project beginning under an extension of the Development Agreement. A six-month extension is before the Planning Commission. Sanford Smith, Hoag Hospital Senior Vice President, noted the hospital and community have changed during the 65 years Hoag Hospital has served the community. The Development Agreement allows Hoag Hospital to adapt to future changes. Six months should be an adequate timeframe to conclude negotiations of a complex agreement. In answer to Commissioner Koetting's query, Coralee Newman, Hoag Hospital consultant, advised that the City's Mayor originally suggested a six-month extension of the Development Agreement in order to negotiate the terms of a longer extension. Both Hoag Hospital and the City felt six months would be an appropriate extension. Chair Zak opened the public hearing. 4 of 6 NEWPORT BEACH PLANNING COMMISSION 01/17/2019 Jim Mosher questioned whether the City Council or staff is negotiating with Hoag Hospital. The amount of development remaining under the Development Agreement is not clearly explained in the staff report, and that amount should be clearly explained in the staff report for a longer extension of the Development Agreement. An unidentified speaker remarked that the potential for an additional half -million square feet of development is a concern for residents, especially those who live around the hospital. The Development Agreement has to address the mix of development. Hoag Hospital is not in compliance with noise requirements. Chair Zak closed the public hearing. Commissioners Kramer and Kleiman and Vice Chair Weigand disclosed ex parte communications with the applicant's consultant. Chair Zak, Commissioner Koetting and Secretary Lowrey disclosed no ex parte communications. At Commissioners' request, Community Development Director Jurjis explained that staff is negotiating with Hoag Hospital, even though Hoag Hospital representatives are speaking with Council Members. Staff has submitted an offer to Hoag Hospital. Staff recommends an extension of six months, but the Planning Commission can recommend a nine-month extension to the City Council. The City Council will decide the length of the extension. Chair Zak recalled the applicant's acknowledgement that a six-month extension is adequate. Motion made by Commissioner Kramer and seconded by Commissioner Kleiman to find all significant environmental concerns for the project have been addressed in a previously certified Final Environmental Impact Report and Supplemental Environmental Impact Report, the City of Newport Beach intends to use said documents for the above -noted project, and no additional reasonable alternative or mitigation measures should be considered in conjunction with said project; and adopt Resolution No. PC2019-003 recommending the City Council adopt Development Agreement No. DA2018-004 amending Amended and Restated Development Agreement No. 5 to extend the term of the agreement by six (6) months. AYES: Zak, Weigand, Lowrey, Kleiman, Koetting, Kramer NOES: None RECUSED: Ellmore ABSENT: None VIII. STAFF AND COMMISSIONER ITEMS ITEM NO. 5 MOTION FOR RECONSIDERATION None ITEM NO. 6 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA. 1. General Plan Update 2. Koll Study Session 1/31/19 Community Development Director Jurjis reported the February 7 hearing of the Planning Commission will be canceled. The next hearing will be February 21. Staff is segregating the General Plan update process into three phases. The first phase will focus on listening to and learning from the community. If the City Council approves the formation of a steering committee for Phase 1 on January 22, members of the public can apply for the committee through the City Clerk's office. During Phase 2, staff and consultants will draft a proposed General Plan, conduct the environmental review, and request the Council form a General Plan Advisory Committee (GPAC) comprised of 25-30 members of the community. Phase 3 will conclude the process with board and commission review and Council approval of the draft General Plan. The first community meeting will address a Request for Proposals (RFP) to retain a consultant for the General Plan update process. 5of6 NEWPORT BEACH PLANNING COMMISSION 01/17/2019 In reply to queries, Community Development Director Jurjis advised that staff will notify Commissioners of community meetings. The steering committee will be comprised of five residents. Commissioners and Board Members will likely be members of the GPAC. Deputy Community Development Director Campbell indicated the City must provide the State of California with an updated Housing Element in October 2021. The 36 -month timeframe for the General Plan update is based on the deadline to submit an updated Housing Element. The City Council must adopt an updated Housing Element and staff must submit it prior to the October 2021 deadline. If the City misses the deadline, the State could reduce the City's Housing Element cycle from eight years to four years. The 2014 referendum pertained to Measure Y. The need for a referendum on the updated General Plan depends on the amount of added development contained within the draft General Plan. The City will need to provide zoning for a mandatory number of housing units. Some opportunity housing sites listed in the existing Housing Element may not be eligible in the next Housing Element. Staff may present a study session to the Planning Commission regarding a Mariner's Mile project. The appeal of the Nicholson variance and coastal development permit request is pending before the Coastal Commission. Commissioner Kleiman recused herself from discussion of the Koll Center project because her husband's company has represented the developer. Secretary Lowrey recused himself from discussion of the Koll Center project because of his equity membership in the Pacific Club. Community Development Director Jurjis noted Commissioner Kramer's recusal due to business relationships located within 500 feet of the property. Community Development Director Jurjis advised that staff has tentatively scheduled a study session on the Koll Center project for January 31 at 4:30. All Commissioners indicated they are available at the proposed date and time. Jim Mosher inquired regarding the date on which the Mayor will present her slate of candidates for the steering committee and the date of the community outreach meeting regarding the RFP. If the General Plan update is subject to a referendum, it may require a special election because of the projected October 2021 completion date. Community Development Director Jurjis clarified that two Council Members will be part of a selection committee that will recommend candidates for the steering committee. The Mayor will select the candidates for the steering committee. The community forum regarding the RFP will occur, but staff has not scheduled a date. ITEM NO. 7 REQUESTS FOR EXCUSED ABSENCES Commissioners Kleiman and Kramer announced they will not be present for a February 21 hearing. Chair Zak indicated he has a potential conflict with the hearing on February 21. Commissioner Koetting advised that he will not be available for a hearing on March 21. IX. ADJOURNMENT — 7:40 p.m. The agenda for the January 17, 2019, Planning Commission meeting was posted on Friday, January 11, 2019, at 3:40 p.m. in the Chambers binder, on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive, and on the City's website on Friday, January 11, :)f 6