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HomeMy WebLinkAbout07/28/1986 - Regular MeetingMINUTES C+ tf o Zi S OV�11 REGULAR COUNCI L MEETING F PLACE: Council Chambers TIME: 7:30 P.M. SS F DATE: July 28, 1986 Present I x I x I x I x I x I x I x Motion All es ',Motion All Ayes Motion All Ayes • Motion All Ayes • 1 x x x x A. ROLL CALL. B. The reading of the Minutes of the Meeting of July 14, 1986, was waived, approved as written, and ordered filed. C. The reading in full of all ordinances and resolutions under consideration was waived, and the City Clerk was directed to read by titles only. D. HEARINGS: 1. Mayor Maurer•opened the public hearing regarding cost of abatement of weeds and other nuisances. Report from Fire Chief was presented. Hearing no one wishing to address the Council, motion was made to adopt Resolution No. 86 -66 confirming the report of the Fire Chief concerning the cost of abatement of weeds and other nuisances and requesting the Auditor - Controller of Orange County to enter the amount of each assessment referred to in said report on the County Tax Roll. 2. Mayor Maurer opened the public hearing regarding construction of curb, gutter and sidewalk in front of real property located at 205 and 206 Orange Street, Newport Beach, California. Report from Public Works Department was presented. Hearing no one wishing to address the Council, the public hearing was closed. and motion was made to order the property owners to commence work within 60 days. 3. Mayor Maurer opened the public hearing and City Council review of USE PERMIT NO. 1758 (AMENDED), approved by the Planning Commission on June 19, 1986, being a request of TIFFANY'S ASTROLOGICAL CLUB, Newport Beach, to amend a previously - approved use permit which permitted the establishment of a private club with on -sale alcoholic beverages, live entertainment, and dancing. The proposed amendment includes a request to approve an off -site parking agreement so as to allow a portion of the required off - street. parking to be located in the parking lot of the Lido Building located Volume 40 - Page 302 1) Abatm/ Dpt 86 -66 05/206 range /Curb dwlk Constr 74) 1758(A) fang's -Site Pkg CITY OF NEWPORT BEACH COUNCIL MEMBERS \C&L!2 ®LL July 28, 1986 MINUTES TWIWIA at 3355 Via Lido. The proposal also U/P 1758(A) includes a modification to the Zoning Tiffany's Code to use tandem parking for a portion of the on -site parking spaces and the • use of a full -time valet parking service. Property located at 3388 Via Lido; off -site parking located at 3355 Via Lido in the Lido Building parking lot. Report from the Planning Department was presented. Council Member Heather advised that, inasmuch as she is a member of Tiffany's, she will remove herself from the dais and abstain from participation in this hearing. Hearing no one wishing to address the Council, the public hearing was closed. Council Member Strauss stated it was his suggestion this item be reviewed by the City Council for several reasons. He noted that the staff recommended denial of the request due to the potential for the creation of undue traffic hazards in the area and the conflicts between two destination point uses (The California • Beach Restaurant and Tiffany's) in one parking lot. However, a majority of the Commissioners were of the opinion that there has not been a traffic, or circulation. problem with Tiffany's since the original off -site parking agreement for the club in 1974 allowed the valets to cross Via Lido to Via Oporto. He also pointed out that the Planning Commission voted (5 Ayes, 2 Noes) to recommend approval of the subject Use Permit and related off -site parking agreement. Motion x Council Member Strauss stated he has an Ayes x x x x x ongoing concern with regard to too many Abstain x cars being "packed" into the Lido Marina area. However, due to the hours of operation of Tiffany's, he does not feel there would be a conflict in the off -site parking lot, inasmuch as The California Beach Restaurant is required to close by 11:00 p.m. daily. He therefore moved to sustain the decision of the Planning Commission and approve • the off -site parking agreement. Council Member Heather returned to her seat on the dais at this time. Volume 40 - Page 303 CITY OF NEWPORT BEACH COUNCIL MEMBERS \CALJuly 28, 1986 RnlL MINUTES Il 91;r4 E. PUBLIC COMMENTS: 1. Donald R. Hunter, representing the Golden State Golden State Mobilehome Owners League, Mobilehome addressed the Council and distributed a Owners Leag • copy of "Mobile Home News," published in Orange County, for the Council's review. He discussed the escalating costs of renting mobilehome spaces, stating that in this area, the rent averages between $400 and $1,000 per month. He stated that some mobilehome parks are being purchased by the residents as a whole, and that possibly this could be looked into with regard to Lido Mobilehome Park. He felt this could be the answer to stabilising the rent control problem, and would also add affordable housing for senior citizens. He asked for encouragement from the Council in this regard. Mayor Maurer invited Mr. Hunter to contact his office to discuss his concerns further. F. CONSENT CALENDAR: Motion x The following actions were taken as Ayes indicated, except for those items removed: 1. ORDINANCES FOR INTRODUCTION: None. 2. RESOLUTIONS FOR ADOPTION: None. 3. CONTRACTS /AGREEMENTS: (a) Award Contract No. 2516 to the SJoaquin Hls Griffith Company of Santa Ana for Rd Impv /Mdn $448,427.45; and authorize the Lndscpg Mayor and -City Clerk to execute C -2516 said contract for San Joaquin Hills (38) Road Improvements and Median Landscaping, Marguerite Avenue to Spyglass Hill Road. (Report from Public Works Department) (b) Authorize the Mayor and City Clerk Balboa Pnsla to execute a Professional Services Draing Stdyy Agreement with Keith Engineering, Keith Engr Inc. for Balboa Peninsula Drainage C -2582 Study (Contract No. 2582). Report (38) ® from Public Works Department) Volume 40 - Page 304 OUNCIL MEMBERS • • CITY OF NEWPORT BEACH 9c \ F MINUTES July 28, 1986 (c) Authorize the Mayor and City Clerk to execute Agreements regarding Transfers of Mobile Home Space and Compensation for Services and Costs for the following Marinapark Mobilehome Spaces: Space 1 -A, and 11 -C. 4. COMMUNICATIONS - For referral as indicated: Marinapark Mobile Hm Tsfr Agrmts Sp /11 -(A) C -2602 Sp /111 -C C -2603 (38) (a) To Business License Supervisor for Bus Lic report back, appeal of Robert T. (27) Carruth from business license penalties. (b) To Building Director for response, Bldg Callender Construction project at (26) 302 Orchid Avenue, Corona del Mar, allegedly encroaching on property at 304 Orchid Avenue. (c) To staff for response, request from 15th /Wash St Quality of Life Committee for Restrm Rnvtn status on the start of construction C -2550 on the new restroom at 15th Street (38/74) location and renovation of the present Washington Street restroom and that top priority be given to the construction of the new restroom at the Newport Pier. 5. COMMUNICATIONS - For referral to the City Clerk for inclusion in the records: (a) Minutes of the Local Agency Formation Commission of Orange County for June 4, 1986. 6. CLAIMS FOR DAMAGES - For denial and (36) confirmation of the City Clerk's referral to the claims adjuster: (a) Sammy W. Cross alleging damage to (Cross vehicle as a result of being rear -ended by City truck on June 19, 1986 at Pacific Coast Highway. (b) Michael E. DeGeer seeking indemnity from claim filed by Linda Sue and Jerry Murray against the City which involved a traffic accident at Superior and Pacific Coast Highway on July 16, 1985. (c) Mrs. Richard P. Hausman alleging damage to interior portions of home and boat caused by smoke and debris from the fire of vessel being filmed by Cannon Films, Inc. on May 30, 1986, at 201 Evening Star Lane. Volume 40 - Page 305 1,111i 1 11, A �r I COUNCIL MEMBERS \r-AL9 �G®1.L G`rJ July 28, 1986 MINUTES Ia Tw7 *j (d) John A. Kuder alleging personal Kuder books, papers, etc., not returned to him when released from City jail (arrested on July 5, 1986). • (e) Michael A. Lugo alleging 11Road Lugo Construction Sign" in traffic lane caused damage to right side of truck and tore off right mirror at j Jamboree between Bristol and i MacArthur Boulevards on June 29, 1986. (f) Steven. J. Pellerin alleging Pellerin personal injuries, blindless in one eye, etc., as a result of collision at West Balboa Boulevard and 41st Street on April 10, 1986. (g) State Farm Insurance for Buddy State Farm Bearbower, who was involved in Ins/Bear- traffic collision on June 27, 1986, bower at E1 Capitan Dr. and Point Arguello, alleging said intersection is "blind" and should have stop signs. (h) Volkswagen of America, Inc., Volkswagen seeking indemnity from claim filed of America/ by Linda Sue and Jerry Murray Murray regarding accident at West Coast Highway and Superior Avenue on July 16, 1985. (i) Application for Leave to Present Auto Club Late Claim of Auto Club of So. So CA /Ramet- California for Sam and Jeanmarie to Ramett:a alleging resultant damage from Stalling tree to claimant's vehicle parked at 708 Narcissus on February 14, 1986. 7. SUMMONS AND COMPLAINTS - For denial and confirmation of the City Clerk's referral to the claims adjuster: None. 8. REQUEST TO FILL PERSONNEL VACANCIES: (66) (Report from the City Manager) (a) Approve one Refuse Crewworker, Refuse Division. (b) Approve one Steno Clerk II, Administrative and Engineering Division. (c) Approve one Assistant Planner, Current Planning Division. Volume 40 - Page 306 CITY OF NEWPORT BEACH COUNCIL MEMBERS \CAL ROLL 'fl9 `G �i 9G,9 9'P� �9J, C�tn July 28, 1986 MINUTES INDEX (d) Approve: two Police Sergeants, Patrol Division. (e) Approve two Police Officers, Patrol • Division. (f) Approve two Police Lieutenants, Patrol Division. (g) Approve one Associate Civil Engineer, Traffic Division. (h) Approve one Business License Inspector, Business License Division. 9. STAFF AND COMMISSION REPORTS - For Council information and approval: (a) Memorandum from Executive Assistant Oasis /Hrbr with recommendation for approval of Area Adult grant of $10,000 to the Harbor Area Day Cr Ctr Adult Day Care Center. (62) (b) Report from the City Manager PD /Audit concerning the Police Department (70/40) Audit. (c) Report from the Marine Director Marine /Life- • concerning Lifeguard Headquarters guard Hdqtrs Parking. Pkg (51) (d) Report from the Executive Assistant Traffic/ to the City Manager concerning Wash St Washington Street Closure. (85) For Council information and filing: (e) Fiscal Year 1986 -87 Officers for: Bds /Cmsns (24) 1) Planning Commission 2) Arts Commission 3) Civil Service Board 10. PUBLIC HEARING SCHEDULING: (a) August 11, 1986 - Appeal Variance application of Ernest W. and Donna 1134 Schroeder for Variance No. 1134, (91) denied by the Planning Commission on July 10, 1986. (b) August: 25, 1986 - PLANNING PCA 636 COMMISSION AMENDMENT NO. 636 - A Gfeller request of the GFELLER DEVELOPMENT (94) CO., INC., Tustin, to amend the Planned Community Development Standards for the CORONA.DEL MAR Volume 40 - Page 307 COUNCIL MEMBERS • • • 741 5 1,11 9 \ � C�1 MINUTES July 28, 1986 HOMES PLANNED COMMUNITY (SUMMER WIND) so as to allow individual property owners to use the side yard of sit adjoining lot for parking purposes, landscaping, and the construction of pools and spas. Property bounded by Carnation Avenue, Fourth Avenue, Dahlia Avenue and Second Avenue, in Corona del Mar. (Report from the Planning Department) 11. (A) PROPOSED GENERAL PLAN AMENDMENT 86 -2(A) - Sustain the recommendation of the Planning Commission and initiate a GENERAL PLAN AMENDMENT to the Land Use Element of the Newport Beach General Plan to reclassify approximately 3.6 acres of land, located between Placentia Avenue, Superior Avenue and the northerly City boundary, from "General Industry" to "Multi- Family Residential;" (B) PROPOSED GENERAL PLAN AMENDMENT 86 -2(B) - Sustain the recommendation of the Planning Commission and initiate a GENERAL PLAN AMENDMENT to the Land Use Element of the Newport Beach General Plan to reclassify the property located at 3014 West Balboa Boulevard from "Two- Family Residential" to "Retail and Service Commercial;" and (C) PROPOSED AMENDMENT NO. 10 TO THE CITY OF NEWPORT BEACH LOCAL COASTAL PROGRAM, LAND USE PLAN - Sustain the recommendation of the Planning Commission and initiate an amendment to the Certified Local Coastal Program, Land Use Plan, for the property located at 3014 West Balboa Boulevard from "Two- Family Residential" to "Retail and Service Commercial." (Report from the Planning Department) 12. OFFSITE PARKING AGREEMENT - Acceptance of an Offsite Parking Agreement with RUSSELL E. FLUTER, Newport Beach, for a portion of the required offstreet parking spaces in connection with the construction of two combined residential /commercial developments on adjoining :lots located at 2816 and 2818 Newport Boulevard, between 28th and 29th Volume 40 - Page 308 GPA 86 -2(A) & (B) / Amnd #10 LCP /LUP (45) Of Site Pkg Agm /Fluter C -2605 (38) COUNCIL. MEMBERS \A0 -o � ��1 s 'P9 CGS 9G9 G`IS �'FQ �� $�q July 28, 1986 MINUTES ite Pkg 'Vallely Tr /Bal Ig 66 )oa Pkg Ticket C -2398 i ib 819 1 lity Life bar Perm i #129- 1 Streets in the Cannery Village /McFadden Square Specific Plan Area. (Report from the Planning Department) • 13. OFFSITE PARKING AGREEMENT - Acceptance Ofs of an Offsite Parking Agreement with Agm, VALLELY FAI4ILY TRUST and BALBOA LANDING, Fam so as to allow the required offstreet Lan( parking for the development known as C -21 EDGEWATER PLACE (USE PERMIT NO. 3122), (38; to be located on separate lots from the building sites. Project location, 309 Palm Street, Balboa. (Report from the Planning Department) 14. Removed from the Consent Calendar. 15. ACCEPTANCE OF BALBOA PARKING LOT TICKET Ball BOOTH (C -2398) - Accept the work; and Lot authorize the City Clerk to file a Bth Notice of Completion and release the (38 bonds 35 days after the Notice of Completion has been recorded, provided no claims have been filed. (Report from Public Works Department) 16. RESUBDIVISION 819 - Approve a Res, Subdivision Agreement guaranteeing (84 completion of the public improvements required with Resubdivision No. 819 • (Lots 12, 13 and 26, Block 14, Balboa Tract, merged as a single building site by Document 12818 -996, located at 922 East Ocean Front and 925 -927 East Balboa Boulevard on the northerly side of East Ocean Front and the southerly side of East Balboa Boulevard, between "A" and "B" Streets, on the Balboa Peninsula); and authorize the Mayor and City Clerk to execute said agreement. (Report from Public Works Department) 17. QUALITY OF LIFE CITIZENS ADVISORY Qua COMMITTEE RESIGNATION - Accept with CAC regret Eleanor Baldwin from the Quality (24 of Life Citizens Advisory Committee; City Clerk to post vacancy notice. 18. Removed from the Consent Calendar. 19. HARBOR PERMIT APPLICATION #129 -1221 - Hat Uphold staff's recommendations, subject Apl to conditions listed in the staff report 122 for request by the Balboa Bay Club to (51 rebuild their existing commercial marina at 1221 West Coast Highway. (Report • from Marine Department) Volume 40 - Page 309 ite Pkg 'Vallely Tr /Bal Ig 66 )oa Pkg Ticket C -2398 i ib 819 1 lity Life bar Perm i #129- 1 CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES � July 28, 1986 \'P\<� o ROLL INDEX 20. HARBOR PERMIT APPLICATION #124 -340Q - Harbor Perm Uphold staff's recommendations, subject Apli#124- to conditions listed in the staff report 3400 • for request by Duncan McIntosh to temporarily revise a section of the (51) commercial docks at Lido Village for the period from September 2 to 14, 1986. (Report from Marine Department). 21. BUDGET AMENDMENTS - For approval: (25) BA -002, $7,700 - Increase in Budget Appropriations and Revenue Estimates for donations from Friends of Library for purchase of compact discs; Library - Donations and Contributions Fund. BA -003, $3,470.80 - Increase in Budget Appropriations for purchase of mobile digital voice radio to assist in narcotic surveillances (funds are provided from the Federal Adopted Forfeiture Fund); Police- Detective Fund. BA -004 - Removed from the Consent Calendar. G. ITEMS REMOVED FROM THE CONSENT CALENDAR: • 1. Proposed Budget Amendment No. BA -004 for Budget Amnd $11,075 - Decrease in Unappropriated #004 Surplus and Increase in Budget (25) Appropriations for rental of portable chemical toilets from August 1 - September 30, 1986; General Services - Building Maintenance Fund, was presented. Council Member Hart stated that she was not opposed to the use of portable chemical toilets; however, if the staff cannot obtain the more attractive type of toilet, rather than the "construction" type of toilet, then she would like to have the General Services Department construct the restrooms immediately so that they can be in operation as soon as possible. She stated she has no objections to the proposed locations for the toilets as, set forth in the staff report. Motion x Following discussion, motion was made by Council Member Hart to approve BA -004 in the amount of $11,075, but that if the • staff can only rent the "construction" type of toilet, then said restrooms shall be constructed and installed by the General Services Department. Volume 40 - Page 310 ., ,,I,�ITU�l rr-.ri Motion x Substitute motion was made to approve BA -004 in the amount of $11,075 for the rental of chemical portable toilets, but that said toileets shall be painted blue • and appropriately screened, and that the budget appropriation be increased to cover this additional work. Motion x A second substitute motion was made to approve BA -004 in the amount of $11,075 for the rental of the portable chemical toilets, but that said amount be increased to a sum not to exceed $20,000 to provide for adequate screening. In addition, the staff is directed to investigate the feasibility and cost of replacing said portable restrooms with a more permanent type facility in the near future. Ayes x x x x x x The second substitute motion was voted Noes x on and carried. 2. Report from the Business License Permit /Spcl Supervisor recommending approval of Events Special Events Application #86 -177, was Apli#86 -177 presented. (65) Council Member Strauss noted that the Fire and Traffic Departments had recommended approval of the subject request; however, the Police Department recommended denial, and questioned if staff knew the reasons for denial. The Executive Assistant responded that any street closure for the purposes of this event would be unlawful pursuant to Section 10.08.030 of the Municipal Code. However, if approved, the Police Department would recommend the following conditions be mete 1) Public sidewalks are not to be blocked; 2) Road closures per Traffic Engineering plan; 3) Show vehicles are on display only, i.e., 11For Sale" signs not permitted on event sites or surrounding area; 4) No alcoholic beverages sold, given away, or otherwise consumed in public; and 5) No sound amplification. • Volume 40 - Page 311 R®LI MC A) At MC Al 4 4 MINUTES rmr-r' tion x In view of the foregoing, motion was Concannon °s es x x x x x x made to uphold staff's recommendation Horseless stain x for approval of Special Events Stable Application 1186 -177 for Concannon °s Horseless Stable for temporary street closure of Via Oporto on August 3, 1986, subject to conditions in the staff report. 3. Report from Public Works Department Seashr Dr recommending ACCEPTANCE OF SEASHORE Rcnstr DRIVE RECONSTRUCTION (C -2461) was C -2461 presented. (38) The Public Works Director advised that the liquidated damages in connection with this project should be assessed in the amount of $2,700, rather than $3,700, which is for 27 days late instead of 37 days late. tion x Motion was made to approve the 1 Ayes Acceptance of Seashore Drive Reconstruction (C- 2461); accept the work; and authorize the City Clerk to file a Notice of Completion and release the bonds 35 days after Notice of Completion has been recorded, provided no claims have been filed, and also assess liquidated damages in the ' amount of $2,700. H. ORDINANCES FOR ADOPTION: None. I. CONTINUED BUSINESS: 1. Request for funding from the Newport TOTx /Uniform Beach Conference & Visitors Bureau was (40) presented. Request of the City Arts Commission for funding was; presented. Recycled reports dated May 12, and March 17, with copy of proposed Agreement and proposed Ordinance, ORDINANCE NO. 86 -5, being, AN ORDINANCE OF THE CITY OF NEWPORT BEACH AMENDING CHAPTER 3.16 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO UNIFORM TRANSIENT OCCUPANCY TAX, ' were presented. Report from the City Manager dated July 28, 1986, was presented. Volume 40 - Page 312 COUNCIL MEMBERS Co ' -0 9� �G� 9Gp �Pl c9A c�F 68 ®LI CAL GriS July 28, 1986 MINUTES John Millen, Consultant with Thomas TOTx /Uniform Wilck Associates for the Newport Beach Conference and Visitors Bureau, addressed the Council and presented an overview of the issues relating to the • Bureau's proposal. Mr. Millen stated that the Bureau is requesting funding of approximately $417,000 as specified in the proposed agreement with the City, to refine and implement a strategic marketing plan aimed at attracting "upscale" quests to the City. These funds will aid the hospitality industry and the rest of the economy of Newport Beach while continuing to generate funds that the City uses to maintain a high quality of life. Mr. Millen stated that so as not to shortchange the General Fund, the hotel. industry is willing to accept a 1% increase in the transient occupancy tax in order to compensate for this expenditure. This is a risk for the hotels of Newport Beach because the tax would be higher than in nearby cities. But this is a risk the hotel industry accepts because of the benefits to the • local economy, to the social and cultural life of the City, and to the citizens of Newport Beach. He discussed the four following key points which were enumerated in their request: 1) Newport Beach benefits from a visitor economy; 2) The City faces strong competition; 3) We want to attract a quality- seeking quest; and 4) Target marketing is a business decision and a wise City investment. Chip Stuckmeyer, President, Newport Beach Conference and Visitors Bureau, addressed the Council and explained the role of the Bureau, noting that they have approximately 150 members from 125 local companies, ranging from retail and boat operators to printers, hotels, motels, restaurants, and airlines. Presently, their budget of $50,000 is made up from dues and fund - raising events. Mr. Stuckmeyer summarized the budget outline and how the funding dollars would be spent, pointing out that Volume 40 - Page 313 COUNCIL MEMBERS \CAL®LL July 28, 1986 MINUTES ITNT- k $325,000 would be set aside for Sales TOTx /Uniform and Promotion, and $147,000 for Administration. Jerry King, 979 Sand Castle, Member of • the Board of Directors, Newport Beach Conference and Visitors Bureau, addressed the Council and discussed the City's benefits from the Bureau. He pointed out the number of cultural and social benefits that residents and visitors enjoy in the City, stating that other cities are constantly competing for the visitor dollar. He stated that, "If the opportunity is given to the Bureau to be leaders in their industry they in turn will give back to the community." Ben Jackson;, Attorney for the Newport Beach Convention and Visitors Bureau, addressed the Council and stated he has discussed the proposed agreement with the City Attorney, which requires the Bureau to produce for the City, and will bring the best results to the City. In response to question raised by Council Member Heather regarding the impact of the Jarvis Initiative, which will be on the November ballot, the City • Attorney stated that the Council's decision to increase the Transient Occupancy Tax from 8% to 9% would be "rolled back" to 8% if the Jarvis Initiative passes, so in essence, the Council's decision could be short - lived. The following persons addressed the Council and spoke in support of the Bureau's request for funding: Bill Hamilton, President of Newport Harbor Area Chamber of Commerce Warner Escher, 205 40th Street Bjorn Sedleni.ek, 1833 Port Renwick Place, owner of business in Fashion Island Jim Dale, 118 Apolena Avenue, representing Villa Nova Restaurant John Jenkins, General Manager, Newport Beach Marriott Hotel Victor Rumbellow, 29 Bodega Drive, owner of Newport Channel Hotel • Deborah Polonsky, Chairperson of the City's Arts Commission, addressed the Council and stated that they would like to see 25% of the 1% proposed increase in Transient Occupancy Tax allocated for Volume. 40 - Page 314 CITY OF NEWPORT BEACH COUNCIL MEMBERS C' s q P ti ti v `G3 ROLL July 28, 1986 MINUTES INDEX the "Art in Public Places" program. She TOTx /Uniforu stated that promoting "Art in Public Places" has become a common practice in many states and cities across the country. She stated that government • funding for art has become as proper an expenditure as some community programs. She noted that there are a number of cities already being funded through a portion of the "bed tax" and they feel that if the tax is raised for the Conference and Visitors Bureau, then the residents of the City should have something tangible such as art, in return. Ms. Polonsky referred to their report, wherein various proposed sites were listed for display of "Art in Public Places." Included also with their report was a proposed Council Policy F -24 relative to "Art in Public Places." Kevin Consey, Director of the Newport Harbor Art Museum, addressed the Council in support of the Arts Commission's request for funding. He noted that the Board of Trustees of the Art Museum support the 1% increase in motel /hotel tax, with the provision that a portion of the increased revenues from this tax • be allocated to the Arts Commission for use in the "Art in Public Places" program. Discussion ensued, wherein the City Attorney pointed out that if the Council earmarks the increase In Transient Occupancy Tax to any particular fund, or any particular purpose, it becomes a special tax and subject to the approval of the electorate. The only way the Council can increase the tax under law is to have the tax go into the General Fund and then from the General Fund monies, appropriate the amount deemed necessary to the Bureau or Arts Commission, or any other particular group. The City Attorney further noted that the tentative agreement between the Bureau and the City, does not "tie" the City to a Transient Occupancy Tax increase. The agreement does specify a certain amount of money that would be funded to the Bureau, and it does state that the • Bureau will. not receive an amount of money in excess of a particular percentage. Volume 40 - Page 315 COUNCIL MEMBERS C+ y y 9 o¢ �G yG 9�� c^9� ��� ROLL CAL �GSd�A 9 July 28, 1986 MINUTES INDEX In response to Council Member Heather, TOTx /Uniform the City 6.tt-orney stated that if the proposed agreement is approved, and if the ordinance is passed and in effect before the November election, he felt • there would be a "window" in time, when the City would have an obligation to provide a small amount of funds to the Bureau pursuant to the agreement. Should the Jarvis Initiative pass, the obligation to fund under the agreement would terminate, and then a new agreement would have to be developed in the event the Council felt it was appropriate, or if the Transient Occupancy Tax matter was submitted to the voters, and the Council felt the Bureau should be funded as a result of the outcome of that vote. Council Member Strauss stated that if the Council decides to increase the Transient Occupancy Tax, he would be totally opposed to entering into any type of agreement with the Bureau, indicating he did not want to commit the City to any one particular organization. He stated that some of the other concerns he has is that the City could become another Miami /Honolulu type City with so many hotels being allowed. He • stated that in the last three years, 1500 additional hotel rooms have been approved, and now the hotel industry is finding that the occupancy rate is not up to what it should be, and the Bureau is turning to the City in order to promote the hotel industry, as well as the area. He stated he does not understand that logic. When the hotels were approved by the Council, the Council was told the City would gain a great deal of income from the Transient Occupancy Tax, which probably has occurred, but that was committed the time it was done and part of the reason for approving the hotels. Fie felt the City is going in the "wrong" direction, as to subsidizing the hotel industry, and stated that it is not being done in the Cities of Irvine, Costa Mesa, and Laguna Beach. In conclusion, he stated that he may, at some point in time, wish to support "Art in Public Places," etc., but is not in favor of committing it to a tax. Council Member Agee stated that he had hoped there could have been a mutual agreement between the Arts Commission and the Bureau representatives, but he Volume 40 - Page 316 MINUTES rrn-firT-n, sees no move in that direction. He TOTx /Uniform indicated he was in support of the Bureau's request, but only if it included a portion of the 1% increase for "Art in Public Places." He also • pointed out that the original proposal for a 1% increase in the Transient Occupancy Tax came from the Arts Commission initially, and not the Bureau. Council Member Heather stated she was supportive of the idea of promotion to get the "up- scale" type visitor; however, she is terribly embarrassed of the McFadden Square area, which is one of the only few commercial waterfront areas in the City. She stated that the site is "derelict" in her opinion, and felt it should be "cleaned up" before any program to promote tourism begins. Jerry King, Member of the Board of Directors of the Bureau, addressed the Council again in response to some of their comments. He stated that the issue of McFadden Square, and other areas of the City, which benefit from revenues out of the General Fund for restructuring, etc., will also benefit • from the Bureau, who will add additional revenue to the General Fund for the City to use at Council's discretion. He stated that their Board of Directors is supportive of "sharing some of the wealth" as a result of the tax. He commented that they have no objection in sharing a portion of the "wealth" with the Arts Commission, but that would have to be a decision of the Council and not their Beard. He stated they feel that over the "long term," the Bureau will benefit the City in many areas. With respect to subsidy, they do not feel they are asking the City to subsidize the Bureau. With regard to an amount that would be returned to the City from the 1% tax increase, he stated the Bureau is estimating that figure to be 10%. Council Member Cox stated that he does not support "Art in Public Places" in connection with the subject proposal of the Bureau, and felt their request was inappropriate and out of perspective. • He stated he does not feel the Council would be helping the hotel industry if the tax increase is approved, but rather helping to promote a visitor - serving Volume 40 - Page 317 MINUTES '`' City. He stated that if the City is to TOTx /Uniform be marketed, enhance the quality of life, and enhance the quality of its product, then he feels the City Council should go about it in a fashion that has • been presented by the Bureau. He stated that the Bureau is attempting to attract better quality visitors so that the City becomes better, and we ensure ourselves of maintaining this type of income. He stated that he was supportive of proceeding with the Bureau's proposal, and that he felt that "Art in Public Places" was a viable program, but not as a "rider" to this proposal. Council Member Hart suggested that the subject of "Art in Public Places" be an item for consideration at a future study session. She stated that she could not support the Bureau's proposal, inasmuch as it would be raising a tax. Mayor Maurer commented that Newport Beach is a tourist town whether the City Council and residents like it or not, and he feels it is something that cannot be stopped. He stated he realizes the importance of good hotels and restaurants in the City, and the revenue they generate through the bed • and sales taxes, but any approval he would give at this time on the subject proposal would be that the 1% tax increase not be tied to any one particular organization, such as the Bureau or Arts Commission. Deborah Polonsky, Chairperson of the Arts Commission, addressed the Council again, and stated that the "Art in Public Places" advisory committee has been working for over a year studying funding for this project, and came up with the idea of the.Transient Occupancy Tax as a viable solution. As a result, they approached the Bureau, who at that time indicated they were not interested in such a proposal. Subsequently, the Bureau reconsidered the idea, and have submitted their proposal which is now before the Council. Motion x Following discussion, motion was made to .continue this item to August 11 or 25, 1986, whichever is deemed more • appropriate by the City Manager, and to direct the City Manager to report back on the feasibility of entering into an Volume 40 - Page 318 MINUTES 77rWWW agreement with the Newport Beach TOTx /Uniform Convention and Visitors Bureau, using General Fund monies. Said report to include: • 1) What kind of return will the City receive for its investment; 2) How much funding can the City afford; 3) What is the City trying to accomplish by this allocation; 4) Should there not be an accountability (in detail) of where the money is to be spent; and 5) Should we give this a testing period. Council Member Strauss stated he would support the motion, but also suggested the report include more information regarding the possibility of adding a 11service charge" to each hotel or motel which would raise an equivalent amount of money to help fund the promotion of tourism, which is being explored by the City of Irvine. Ayes x x x x x Following additional comments, the No x x motion was voted on and carried. 2. BICYCLE TRAILS CITIZENS ADVISORY BT /CAC COMMITTEE: Motion x (District 1) Council Member Strauss's All Ayes opening to fill the unexpired term of David Paine, ending December 31, 1986, to remain vacant. Motion x (District 3) Council Member Hart's All Ayes appointment deferred to August 11, 1986, to fill the unexpired term of Steve Fobes ending December 31, 1986. 3. QUALITY OF LIFE CITIZENS ADVISORY QL /CAC COMMITTEE: Motion x (District 2) Mayor Pro Tem Plummer's All Ayes appointment deferred to August 11, 1986, to fill the unexpired term of Rosemary Luxton ending December 31, 1986. Motion x (District 6) Council Member Agee's All Ayes opening to frill the unexpired term of Virginia Herberts ending December 31, • 1986, to remain vacant. Volume 40 — Page 319 ®UNCIL MEMBERS MINUTES 4L July 28, 1986 *n yes • x J. CURRENT BUSINESS: 1. Appointments to Harbor Quality Citizens Advisory Committee, pursuant to Resolution 86 -59, adopted July 14, 1986. Letter from Dover Shores Community Association was presented. Council Member Cox stated that after reviewing the subject resolution, and inasmuch as it is relative to the Harbor, he felt it might be a more productive committee if its members were represented from the various homeowner associations, such as those in the upper and lower bay, and from the business communities near the harbor, rather than just selecting citizens -at- large. Discussion ensued, wherein it was pointed out that on August 8, 1986, from 9 a.m. to 12 Noon, the State Regional Water Quality Control Board will be meeting in the City Council Chambers, and there may be some people in attendance at that meeting who would be interested in serving on this Committee. Following discussion, and there being no objections, the following appointments were approved: Donald Strauss, Chairman Ruthelyn Plummer, Vice Chairman District 1 - Nancy Skinner District 4 - Janie Arnold Districts 2, 3, 5, 6 and 7 deferred to August 11, 1986. K. ADDITIONAL BUSINESS: None. ATTEST: City Clerk Volume 40 - Page 320 Harbor Qlty/ CAC (24)