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HomeMy WebLinkAbout08/08/1994 - Regular MeetingCOUNCIL MEMBERS OVS 10\0M&P CITY OF NEWPORT BEACH REGULAR COUNCIL MEETING PLACE: Council Chambers TIME: 2:00 P.M. DATE: August 8, 1994 Present x x x x x x x ROLL CALL Motion x Reading of Minutes of Meeting of' July 25, All Ayes 1994. was waived, approved as written, and ordered filed, subject to review /revision of action on the Balboa Bay Club (Item #30, pages 251 -254). M�n x Reading in full of all ordinances and A yes resolutions under consideration was waived, and City Clerk was directed to read by titles only. MATTERS WHICH A COUNCIL MEMBER WOULD LIKE STAFF TO REPORT ON AT A SUBSEOUENT MEETING: Following discussion on the lack of a study session, City Manager referenced the new Brown Act Amendments. Mayor Turner requested staff to report back in one to two months regarding pros /cons of a redevelopment agency to see how it might be applied to the City to assist in its goals and objectives for the future. Council Member Sansone requested a letter to be sent to the Orange County Environmental Management Agency, the lead agency for Newport Coast Drive, to get a firm schedule and some assurance that Newport Coast Drive Extension would be completed about the same time as the Corridor. Council Member Sansone discussed his • concerns regarding a "proliferation" of signs nailed to trees all throughout the City; especially the damage that the nails do to the trees, and requested consideration of an amendment to the sign ordinance, if applicable. Council Member Hedges requested Council consider amending the "party house" ordinance to allow the City to bill for Police services upon first response; presently it is the second response within 30 days. MATTERS WHICH A COUNCIL MEMBER MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT: None JOINT MEETING WITH ENVIRONMENTAL OQALTPY AFFAIRS COMMITTEE. Barbara Shelton, Chairman of the Environmental Quality Affairs Committee 1994, recognized staff liaison who worked with the committee, John Ludvigson of the Police Department and Dave Niederhouse, General Services Director, Council Member Evelyn Hart and Mayor Pro 'rem Jean Watt. She deferred • to the following members and their special projects: Gregg Schwenk, Nancy Gardner, Marge Pantzar, Gordon Kilmer, Mike Kilbride, Barbara Shelton, Ed Hepner, Ray Zartler, and Terrance Phillips. Volume 48 - Page 262 MINUTES INDEX CITY OF NEWPORT BEACH COUNCIL MEMBERS NOV-410\510014 X X x MINUTES August 8, 1994 4.a. Supplemental agenda item - Request by (24) trap Environmental Quality Affairs Committee for Council exception to solicit funds for a STUDENT CALENDAR pursuant to Council Policy A -5. Following discussion motion was made to approve the request for City sponsorship of the 1995 Student Calendar, subject to approval of a staff report two weeks from now. COUNCIL COMMITTEE REPORTS - For discussion only /received and filed: 1. Pacific View Memorial Park Ad Hoc (24) Committee - Minutes of June 8 and 29, 1994 . 2. old Newport Boulevard Specific Area Plan (24) - Minutes of March 17, 1994. 3. Underground Utilities Coordinating (24) Committee - Minutes of July 20, 1994. 4. Environmental Quality Affairs Citizens (24) Advisory Committee - Minutes of July 5, 1994. STAFF REPORTS - For discussion /action: 5. Strategic Information Technology Plan - (70) Report from Police Department. Following preliminary report by Police Chief Bob McDonell and a comprehensive presentation by Faith Goodland of The Warner Group Management Consultants, motion was made to approve recommendations 1 -4 as presented in the staff report. 6. Capital Projects Program, General Fund 1 (40) Moratorium - Report from Public Works Department:. Following a summary by the Public Works Director, motion was made to approve recommendations under (a) and (b) in the staff report. Council Member Hart commented she would support the foregoing motion, but that she would like City staff to find a way to bring the Tustin Avenue Storm Drain program up in priority when funding is available. The Public Works Director, as a matter of clarification, advised that the City proposed a modification to the joint project between the City of Newport Beach and the City of Costa Mesa for 15th Street which included the addition of a storm drain extension on 15th Street. That modification to the 15th Street project changes the hydrology where the Tustin Avenue Storm Drain is and allows that drain to be reduced in diameter and length. The plans do have to be revised to provide for that and this will reduce the cost of the project also. The project will not be ready for contracting probably by the time that Volume 48 - Page 263 COUNCIL MEMBERS All Ayes • • ME CITY OF NEWPORT BEACH August 8, 1994 the City is ready to reconsider the freeze on Capital Projects, but if it is ready to go and it seems desirable to do so, the City staff would bring back a specific recommendation and report to the Council. Although this entails some delay, the overall change that results from adding the 15th Street drain is worthwhile and beneficial to a large segment of Newport Heights, as it reduces the quantity of storm run -off that reaches the upper end of Newport Heights. The motion was voted on and carried. Council Member Sansone re- emphasized that for some time he has requested a PERT -type chart so that Council can look at all the programs that are underway and determine the progress as to where they stand at all times. Management, too, needs a grasp of the status of whether the projects are proceeding on schedule or behind schedule. The Public Works Director indicated that the Capital Projects schedule chart would be updated. Televising Afternoon Council Session - Verbal report from Assistant City Manager. Opening comments were made by the Assistant City Manager, City Attorney and City Manager referring to the Brown Act, Government Code 54953.6 - Prohibitions or restrictions on broadcasts of proceedings of legislative body, and the City's Cable Television franchise agreement. Council Member Cos stated that he thinks it is a disservice to the public for the Council to be taking action on items in the afternoon, and feels that these items should be placed on the evening agenda. He would encourage maintaining the same spirit of activity regarding action items as shown before the Brown Act Amendments. Mayor Turner, commented that he, too, feels strongly about taking any significant action in the afternoon because most people can't leave work waiting for an item to be discussed. Council Member Hart stated that most people would attend the afternoon meeting if they knew that the Council voted during the meeting. Novell Hendrickson, 1991 Port Claridge Place, addressed the Council, citing previous meetings where the Council discussed the Brown Act, and at that time, Mayor Turner asked whether the Council meetings would be televised, and no one seemed to know. When she looked at the Cable Franchise Agreement it does state that the City will have the meetings broadcasted. Volume 48 - Page 264 MINUTES (33) INDEX ROLL CHLL • Motion Ayes Noes • Motion All Ayes CITY OF NEWPORT BEACH COUNCIL MEMBERS XI XI XI XI XI XI X X August 8, 1994 Mayor Turner acknowledged that a COMCAST representative did ask him if the Council wanted the afternoon meetings broadcasted. Dolores Otting, 17 Hillsborough, addressed the Council, stating that she agrees with Council Member Hart, in that a lot of people in the City don't realize that the Council meetings do start at 2:00 p.m. She added that to her knowledge, she doesn't think there is another City in Orange County that starts with an 2:00 p.m., afternoon Council meeting and cuts the public out from live broadcasts. She hopes that the afternoon meetings are televised so that the public can view them. The City Attorney advised that the issue here is that the Council can decide not to request the afternoon session be broadcast, but if COMCAST or anyone else wants to come in and broadcast, the Council cannot prohibit or restrict that. Mayor Turner advised that he will not be supporting the motion, as he feels much like Council Member Cox, that it is a wasted effort; wherein motion was made to request "live" televising by the Cable Company of the afternoon Council meeting, provided that the broadcasting time is consistent with the actual time that the meeting occurs at City Hall. City Council Agenda and Public Comments - Report from City Manager. Summary comments by the City Manager were presented regarding relocation of the public comments section of the agenda. Discussion ensued, wherein Mayor Turner commented that at times, Public Comments can be abused, and feels that the system the City has right now really works quite nicely. He also feels that the Consent Calendar is somewhat downplayed, as the explanation is that routine business is conducted here, but in reality, this is where most of the City business originates, i.e., ordinances for introduction, general plan amendments, budget amendments, etc, and there is the fact that the public hearings are scheduled items. Therefore, Mayor Turner made a motion to receive and file the staff report, and leave the order of the agenda as is. Plamming Commission Actions of August 4, 1994. Following a summary by the Planning Director, General Plan Amendment No. 94- 2(D), which is on tonight's Consent Calendar with recommendation that the Planning Commission initiate subject general plan amendment, he advised that Volume 48 - Page 265 MINUTES (33). (68) CITY OF NEWPORT BEACH COUNCIL MEMBERS s ROLL CALL August e, 1994 Ayes n Motion All Ayes M A es Motion All Ayes • MINUTES INDEX (54) Drd 94 -39 Zoning (94) at the Planning Commission meeting a member of CalTrans voiced opposition. For that reason, Council may want to remove Item 21 from the Consent Calendar. X Motion was made to receive and file the report. 10. City Attorney's report w /supplemental draft report to Orange County ENA regarding comments on SIR #552 -CARG0 OPERATIONS AT JOHN WAYNE AIRPORT. The City Attorney stated that in the staff report he has outlined what he thinks are the key issues, and the primary one is the potential for this project to impact the grandfathered status of the Phase II Access Plan and the John Wayne Airport Settlement Agreement, depending on how the FAA interprets the proposed amendments. The analysis that E1 Toro as an alternative airport is inadequate, in the City's opinion, as well as major flaws in the EIR presents the basis for further comment. X Motion was made to authorise the City Attorney to go ahead and complete the comments to the EMA. 11. Update on City finances - Verbal report from City Manager. X The City Manager advised that he will bring back a report in two weeks, as he would like to include the figures from the FY 194 -95 property tax roll and what to anticipate for FY '94 -95, including the sales tax receipts. ADJOURNED AT 4:28 P.M., TO CLOSED SESSION [Refer to separate agenda from City Attorney] CLOSED SESSION REPORT PRESEMTED: None RECESSED AT 6:00 P.M. RECONVENED AT 7.00 P.M. Rosalind Williams, President of the Newport Beach Conference and Visitors Bureau, presented a Certificate of Appreciation to the City Council for their support and facilitation of the MPI /PEC Conference held in the City last December. CONSENT CALENDAR x The following items were approved, except for those items removed: ORDINANCES FOR INTRODUCTION Schedule for public hearing on August 22, 1994: 12. Proposed ORDINANCE NO. 94 -39, being. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING TITLE 20 OF THE NEWPORT Volume 48 - Page 266 INDEX (54) Drd 94 -39 Zoning (94) CITY OF NEWPORT BEACH «OWN(MLr s � ROLL CRLL August 8, 1994 • • MINUTES INDEX Zoning PCA 805 Drd -94 -41 Veh /Pkg (4'0/85) Pkg Fee Res 94 -74 (40/85) Veh /Pkg Res 94 -75 (85) BEACH MUNICIPAL CODE BY AMENDING PORTIONS OF DISTRICTING MAP NO. 48 SO AS TO RECLASSIFY PROPERTY AT THE WESTERLY CORNER OF NEWPORT CENTER DRIVE AND GRANVILLE DRIVE FROM THE U DISTRICT TO THE APF[5,000SF] DISTRICT, AND TO RECLASSIFY THE REMAINDER OF THE PROPERTY PREVIOUSLY KNOWN AS THE CRANVI17 APARTMENTS FROM THE U DISTRICT TO THE MFR[69DU] DISTRICT AND ESTABLISH VARIOUS FRONT YARD SETBACKS ON DISTRICTING MAP NO. 49 WHICH PERTAIN TO EACH OF THE PROPERTIES (PLANNING COMMISSION AMENDMENT NO. 805) [Report from Planning Department]; AND General Plan Amendment No. 94 -1(A) - Request to amend the Land Use Element of the General Plan redesignating property at the westerly corner of Newport Center Drive and Granville Drive from "Multi Family Residential" to "Administrative Professional and Financial Commercial" uses and to allow 5,000 square feet of office development, on property located at 1001 -1147 Granville Drive in Newport Center; AND Local Coastal Program Amendment No. 34 - Request to amend the Local Coastal Program Land Use Plan redesignating property at the westerly corner of Newport Center Drive and Granville Drive from "Multi Family Residential" to "Administrative Professional and Financial Commercial" uses and allow 5,000 square feet of office development. Pass to second reading on August 22, 1994: 13. Removed from the Consent Calendar. 14. Proposed ORDINANCE NO. 94 -41, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 12.44.040 OF THE NEWPORT BEACH MUNICIPAL CODE ESTABLISHING PARKING METER FEES. [Memorandum from Off street Parking Committee] RESOLUTIONS FOR ADOPTION 15. Resolution No. 94 -74 establishing a $5 daily PARKING FEE FOR THE SUPERIOR PARKING WT. [Memorandum from Off street Parking Committee] 16. Resolution No. 94 -75 authorizing the Traffic Engineer to PROHIBIT THE PARKING OF VKHICLE:S which are six feet or more in height, within 100 feet of an intersection. [Memorandum from Public Works Department /Traffic Engineering, and letter received from Carl Carver, 3239 Broad Street in protest] Volume 48 - Page 267 INDEX Zoning PCA 805 Drd -94 -41 Veh /Pkg (4'0/85) Pkg Fee Res 94 -74 (40/85) Veh /Pkg Res 94 -75 (85) COUNCIL MEMBERS ROLL CRLL • CITY OF NEWPORT BEACH MINUTES August 8, 1994 CONTRACTS AND AGREEIMS INDEX 17. TRAFFIC SIGNAL MODIFICATIONS AND Tfc Sgnl INTERCONNECT AT VARIOUS LOCATIONS Intercnc CONTRACT NO. 3008 - Award Contract No. C -3008 3008 in the amount of $580,770 to (38) Hillside Contractors, Inc., Stanton, California. [Memorandum from Public Works Department/Traffic Engineering] 18. MANAGEMENT INFORMATION SYSTEMS (MIS) - Award a contract to The Warner Croup in the amount of $43,160, plus normal out of pocket expenses not to exceed $6,474. [Report from the MIS Steering Committee] 19. PERSONNEL VACANCIES - Removed from the Consent Calendar. 20. CLAIMS - For Denial by the City Manager: Automobile Club of Southern California, alleging their insured's vehicle in the name of Charles Collett, was damaged by ICity vehicle on May 9, 1994 at Saint Andrews Place. Thomas Debin & Associates for indemnity (E1 Torito Restaurant, Fashion Island) as a result of explosion on August 1, 1993. El Torito Restaurant, Inc., Fashion Island (Santiago vs. Rheem, at al) regarding claim for indemnity, as a result of explosion on August 1, 1993. Manuel Laguna alleging City vehicle broke mirror on his vehicle which was parked on Agate Avenue near South Bay Front on June 30, 1994. Marjorie Martin alleging personal injury from fall as a result of crack in sidewalk at 2737 E. Coast Highway, Corona Del Mar on July 21, 1994. Leonard H. Morgan alleging accumulated property damage from tree to walkway and foundation of house at 600 Narcissus Avenue, Corona del Mar. Sibley Shaw alleging his vehicle was towed in error on July 13, 1994, due to previous owner's outstanding tickets; seeking reimbursement of $107. Sally Thomas alleging City sewer line backed up into premises at 303 Colombia Avenue on July 14, 1994, while occupants were at work; seeking reimbursement of $848.75. Susan and Jim Zager alleging property damage as a result of City water back -up at 606 W. Ocean Front on April 20, 1994; seeking reimbursement of $700. 21. GENERAL PLAN AMENDMENT NO. 94 -2(D) - Removed from the Consent Calendar. Volume 48 - Page 268 (38) (36) 3 COUNCIL MEMBERS s �A ROLL CRLL • • CITY OF NEWPORT BEACH MINUTES August 8, 1994 22. CURB COT AT 417 30TH STREET, CANNERY I VILLAGE - Approve application of William Picker to construct a full width curb cut. [Report from Public Works Department] 23. ENCROACHMENT AGREEMENT FOR CONSTRUCTION I AND MAINTENANCE OF PROPOSED AND EXISTING PRIVATE IMPROVEMENTS WITHIN THE TUSTIN AVENUE PUBLIC RIGHT -OF -WAY ADJACENT TO 411 TUSTIN AVENUE, NEWPORT HEIGHTS - Approve the application, subject to execution of an encroachment agreement for nonstandard improvements (City Clerk to record with the Orange County Recorder); and an encroachment permit issued by the Public Works Department. [Report from Public Works Department] 24. ENCROACHMENT AGREEMENT FOR CONSTRUCTION I AND MAINTENANCE OF PRIVATE IMPROVEMENTS WITHIN THE SANTA ANA AVENUE PUBLIC RIGHT -OF -WAY ADJACENT TO 3000 CLIFF DRIVE, NEWPORT HEIGHTS - Approve the application subject to execution of an encroachment agreement for nonstandard improvements (City Clerk to record with the Orange County Recorder); and an encroachment permit issued by the Public Works Department. [Report from Public Works Department] 25. COAST HIGHWAY WIDENING, NEWPORT 1 BOULEVARD TO HIGHLAND AVENUE /CONTRACT p NO. 2591, RESOLUTION OF CLAIMS I Authorize staff to execute a change order for the subject project in the amount of $131,018.74 for settlement of the final claim by Silveri 6 LeBouef, JV; and approve necessary budget amendments to transfer unappropriated Gas Tax Funds and State Contribution Funds to the Coast Highway Widening Project. [Report from Public Works Department] 26. ENCROACHMENT AGREEMENT FOR CONSTRUCTION AND MAINTENANCE OF PRIVATE IMPROVEMENTS WITHIN THE HAZEL DRIVE PUBLIC RIGHTS -OF- WAY ADJACENT TO 324 POPPY AVENUE, CORONA DEL NAR - Approve the application subject to execution of an encroachment agreement for nonstandard improvements (City Clerk to record with Orange County Recorder); and an encroachment permit issued by the Public Works Department. [Report from Public Works Department] 27. BAR OR PERMIT APPLICATION 105 -2223 - Approve application by Peter O'Brien to build a new pier and float bayward of 2223 Bayside Drive, subject to conditions in the staff report. [Memorandum from Marine Department] SPECIAL EVENTS APPLICATIONS - Approve the following applications, subject to conditions in the staff report from the Community Services Department Supervisor: 28. Application No. 94 -116 - Newport Seafest Sk, 4k, and 2k Race Pace Promotions, Sunday, September 18, 1994 at 6:30 a.m. and continue until 10:30 a.m. Volume 48 - Page 269 ROLL CALL S • Motion All Ayes • X CITY OF NEWPORT BEACH August 8, 1994 29. Application No. 94 -150 - Removed from the Consent Calendar. 30. BUDGET AMENDMENTS BA -001 - Removed from the Consent Calendar. BA -002, $131,018.64 - Transfer unappropriated Gas Tax Funds and State Contribution Funds to the COAST HIGHWAY WIDENING PROJECT /CONTRACT NO. 2591. (Refer to report w /agenda item 025] BA -003 - Removed from the Consent Calendar. ITEMS REMOVED FROM THE CONSENT CALENDAR A¢enda Item No. 13. Report from City Attorney introducing an ordinance creating a Special Improvement District Financing Code ( CIOSA). The City Manager advised that on July 11, the City Council reviewed and considered a proposed enabling "umbrella" ordinance that would authorize the Council to create special improvement districts to facilitate implementation of CIOSA. The enabling ordinance simply establishes the procedure the Council would follow if and when it decides to establish a Special Improvement District. There are two alternative ordinances included in the Agenda packet, and the ordinance which gives the Council the broadest powers is designated as "Exhibit A." The amendments to the proposed ordinance which would limit the Council's power to the CIOSA properties and related improvements are contained in "Exhibit B." The primary advantage of adopting an ordinance authorizing district financing of a wide range of services or improvements is the ability to respond to the special needs or desires of a particular segment of the community. Motion was made by Mayor Turner to introduce proposed ORDINANCE NO. 94 -40, Including Exhibit A. and pass to 2nd reading on August 22, 1994, being. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADDING CHAPTER 3.35 TO THE NEWPORT BEACH MUNICIPAL CODE AMD CREATING A SPECIAL IMOVEMENT DISTRICT FINANCING CODE ( CIOSA). 19. Report from Personnel Director regarding PERSONNEL VACANCIES. Dolores Otting, 17 Hillsborough, addressed the Council and questioned whether it was "fiscally prudent" to fill the requested two positions in view of the current economy. Volume 48 - Page 270 MINUTES INDEX Apl 94 -150 (40) Ord 94 -40 CIOSA (68) (66) CRLL Mo A es 0 • COUNCIL MEMBERS x CITY OF NEWPORT BEACH August 8, 1994 The City Manager justified the reasons for the replacements as set forth in the staff report, and also noted that both of the positions had been approved during the 1994 -95 budget process. In view of the foregoing, motion was made by Council Member Watt to approve the recommended action. 21. GENERAL PLAN AMENDMENT NO. 94 -2: Report from Planning Department concerning request to initiate an amendment to the Newport Beach General Plan for: D. Caltrans West - Possible modifications to the Land Use Element and Recreation and Open Space Element that would specifically authorize the transfer of 152 dwelling units from the site to any property in the City, grant park credits to the owner of the parcel to which the units are transferred, and authorizing the transfer of development rights based upon a traffic equivalency to any zoning district subject to the review and approval of the City Council. The request includes an amendment to the Recreation and Open Space Element to change the designation of Caltrans West from a view park to a community park; and an amendment to the Land Use Element to designate the site as Recreational and Environmental Open Space subject to development rights transfer. The City Clerk advised that after the agenda was printed, a letter was received from CalTrans in opposition to the proposed amendment. A Supplemental Staff Report from the Planning Department was also presented. Council Member Debay stated that the reason she removed this item from the Consent Calendar is because after this matter left the Planning Commission, there were three letters received from CalTrans that the Commission never saw, and after reading those letters and talking with the Planning Department, the above Supplemental Report was prepared that addressed the subject correspondence. She stated that she does not want to slow this proposal down; however, she does want all concerned parties to meet and discuss this item kurther. The following persons addressed the Council in support of the proposed initiation of a General Plan amendment in order that the subject property can ultimately be developed as a community park: Mike Johnson, 5803 Seashore Drive, representing the Committee for the Acquisition of Sunset Ridge (CalTrans West), also read letter of support from Louise Greeley, 16 Swift Court. Volume 48 - Page 271 MINUTES INDEX GPA 94 -2 (45) COUNCIL MEMBERS VOVV�-, • • Motion CITY OF NEWPORT BEACH X Motion Ayes Noes Ix Ix ix x Ix Ix Ix Ix All Ayes • August B. 1994 Richard Demmer, 2812 Cliff Drive Gary Seaton, representing Newport Crest Homeowners Association Jan Vandersloot, 2221 16th Street Louise Greeley, 16 Swift Court In response to question raised by Council Member Hart regarding the purchase of this property, the City Manager noted that the City will not be pursuing the acquisition of this site, and the matter under consideration at this time is only to change the land use designation of the General Plan to allow open space uses on this property. However, it would be the City's goal to have the Armstrong Oil property owner purchase this property from CalTrans, and in lieu of developing open space on their property, they would develop CalTrans 'West for their open space to comply with the requirements of their development. It would be up to the City to maintain the park site once it is developed. Ralph H. Neal, Deputy District Director, Office of Right of Way, State Department of Transportation ( CalTrans), addressed the Council in opposition to the proposed General Plan amendment, and stated this issue has come up before and they objected to the proposal at that time as well. They feel they are being put in a position of having to deal with this matter "somewhat under the gun." He requested they be given an opportunity to meet with staff and interested individuals to see what can be worked out before the Council proceeds further. The City Manager pointed out that he, along with the City Attorney and City Engineer, met with Mr. Neal on June 15 to discuss this issue; however, more dialogue will take place during the initiation process if staff is directed to proceed. Motion was made by Council Member Debay to direct staff to meet with CalTrans to resolve the outstanding issues, and schedule this item for consideration with revised or existing amendment language in October of this year. Substitute motion was made by Council Member Watt to direct the staff to initiate General Plan Amendment No. 94 -2 at this time so that discussions with Caltrans can take place immediately, which motion FAILED. The original motion was voted on and carried. 29. Report from the Community Services Supervisor recommending approval of Special Events Application No. 94 -150 by the Riwanis Club of Newport Beach, Costa Mesa and Irvine YMCA to hold their 10th volume 48 - Page 272 MINUTES INDEX 94 -2 Special Events Apl 94 -15, (27) CITY OF NEWPORT BEACH COUNCIL MEMBERS s � ROLL CRLL August 8, 1994 MINUTES INDEX Annual 5k Run and Walk, 10k Run and lk Kiddie Run on Sunday, October 23, 1994 from, 7:00 a.m. and continue until 10:30 a.m. Mayor Turner inquired into the starting time for this event inasmuch as the Agenda noted 7:00 a.m., but the application indicates 6:00 a.m. Motion x The City Manager advised that the event All Ayes will begin at 7:00 a.m., and therefore, motion was made by Mayor Turner to approve the recommended action. 30. BA -001, $9,700 - To provide for BA -001 replacement of vandalized cleansweep (40) boat, which was damaged beyond repair; Equipment Maintenance - Purchasing Fund. In response to question raised by Council Member Hedges, the City Manager stated that the Water Rake is an effective tool in the Upper and Lower Bays, however, it does not work as well in the "tighter" locations closer to shore and in and around the piers and slips, and for this reason the staff is recommending replacement of the Cleansweep boat. Motion x In view of the foregoing, motion was All Ayes made by Council Member Hedges to approve the recommended action. BA -003, $16,662 - To provide for BA -003 donations to Newport Beach Public (40) Library - In clarifying this item for Council Member Hedges, the City Manager stated that the source of funds are from private donations, and the purpose of this amendment is to properly code the accounts those monies ultimately go into. Motion x In view of the foregoing, motion was All Ayes made by Council Member Hedges to approve the recommended action. PUBLIC HEARINGS 31. Mayor Turner opened the public hearing regarding: GENERAL PLAN AMENDMENT NO. 94 -1(B): GPA 94 -1(i Request to amend the Land Use Element of (45) the General Plan so as to allow the addition of three theaters with a total of 897 seats to the Edwards' Big Newport Cinemas, and the acceptance of an Environmental Document on property located at 300 Newport Center Drive; and TRAFFIC STUDY NO. 94: Request to • approve a traffic study for the addition of three theaters with a total of 897 seats to the Edwards' Big Newport Cinemas; and Volume 48 - Page 273 .y COUNCIL MEMBERS Fs ROLL CRLL • • CITY OF NEWPORT BEACH August 8, 1994 USE PERMIT NO. 1527 (AMENDED): Request to amend a previously approved use Permit which permitted the expansion of the existing Edwards' Big Newport Cinemas located on property within the APF -H District. The amendment involves a request to construct a new building containing three theaters, administrative offices, and a total of 897 theater seats. The proposal also includes: a use permit to allow portions of the proposed building to exceed the 32 foot basic height limit in the 32/50 Foot Height Limitation District; and request to permit an off -site parking arrangement for the additional required parking; and EXCEPTION PERMIT N0. 46: Request to allow the construction of a 40 foot high free standing,animated identification /marquee sign for the Edwards "Big Newport Cinemas." Report from Planning Department. Council Member Hedges and Sansone stepped down from the Council dias, and vacated their chairs at this time indicating a possible conflict of interest. The Planning Director reported that the purpose of this amendment is to add 897 seats in a three theater complex to Block 200 of Newport Center on the site of the former Good Earth restaurant. With the addition as prepared, the General Plan will allow as many as 2947 seats in six theaters, although only 2886 seats are currently planned. In conjunction with this issue, a traffic study was performed for the prepared project, and the study found that on seven of the eight intersections analyzed, the generated traffic would not be greater than 18 of the existing 2.5 hour peak period, and that at the intersections of MacArthur and San Miguel, and Coast Highway and Newport Center Drive, the ICU values for the A.M. and P.M. peak would not be altered. With regard to parking, the Planning Director stated the applicant proposes to provide a minimum of 299 additional parking spaces in Block 200 of Newport Center for use at night, holidays and weekends. These are common area spaces owned by The Irvine Company. At the time this application was being processed through the Planning Department, there was considerable discussion regarding the use of the existing parking spaces on the inside of the ring road adjacent to Robinsons, and a proposal is currently being studied to allow curb side parking on Newport Center Drive. Due to the safety problems this situation could create for Jay-walkers on Newport Center Drive, a Condition has been imposed which will require barriers to be constructed Volume 48 - Page 274 MINUTES III U/P 1527(A COUNCIL MEMBERS ROLL CFLL • • M A Abstaine CITY OF NEWPORT BEACH x I x I x I x I x I x August 8, 1994 between the back of sidewalk and the parking lot on the inside of the ring road to force pedestrians to cross at the recognized intersection. The Planning Director further stated that Use Permit No. 1527 (Amended) will govern the physical development of the site, including those elements which exceed the basic height limit of 32 feet in the 32/50 Height Limitation Zone. These include an entry tower 55 feet in height and two additional roof elements which are 52 feet and 49 feet respectively. With regard to the Exception Permit, he stated the purpose of this permit is to address the issue of the sign that is proposed at the entry of the project, which will be in the same location as the existing sign. The new animated sign will be 40 feet in height, containing an area of 475 sq. ft. The proposed sign is approximately the same height as the Hard Rock Cafe; however, it is approximately 85% larger and 205 feet closer to the adjacent sidewalk. The Planning Commission considered this request on July 7, 1994 and approved the request with four ayes, 1 abstention and 1 absent. Jim Edwards, President of Edwards Theaters, 300 Newport Center Drive, stated that the proposed project will be a "dazzling and vibrant addition" to what they have already developed. The theater itself will be a compliment to their existing Newport Cinemas and they felt that the animated sign being proposed will add stature and presence to the location of the project. The Planning Director answered questions posed by Council regarding the animated sign, during which Council Member Watt indicated she would prefer to see a smaller sign. Sid Soffer, 900 Arbor Street, Costa Mesa, addressed the Council and spoke in favor of the proposed animated sign, noting "it is in an area all by itself and does not hurt any residential properties." Hearing no other comments, the public hearing was closed. Council Member Watt requested that approval of the Exception Permit for the Animated Sign be voted on separately, to which there were no objections. In view of the foregoing, motion was made by Council Member Cox to approve the following actions: (a) Adopt Resolution No. 94 -76 amending the Land Use Element of the General Plan, to alter the policy statements for Statistical Area No. L -1 in order to allow the Volume 48 - Page 275 MINUTES 94 -1(B) 94 -76 CITY OF NEWPORT BEACH COUNCIL MEMBERS CRLL August 8, 1994 is Motion Ayes x x Noes I I I x I I I x x x Abstained x x is addition of three theaters with a total of 897 seats to the Edward's Big Newport Cinemas; and the Acceptance of an Environmental Document; and (b) Adopt Traffic Study No. 94, a request to approve a traffic study for the addition of three theaters with a total of 897 seats to the Edwards' Big Newport Cinemas; and (c) Approve Use Permit No. 1527 (Amended), subject to the findings and conditions of approval as recommended by the Planning Commission; and (e) Approve the off -site parking arrangement for the additional required parking for the expanded theater complex, subject to the findings and conditions as recommended by the Planning Commission; and (d) Approve Exception Permit No. 46, subject to the findings and conditions of approval as recommended by the Planning Commission. Council Member Hedges and Sansone resumed their seats at this time. 32. Mayor Turner opened the public hearing regarding Appeal on the following: A. TRAFFIC STUDY N0. 93 - Request to approve a traffic study for a proposed McDonald's take -out restaurant facility; and the acceptance of an Environmental Document; and B. USE PERMIT N0. 3516 - Request to establish a McDonald's take -out and drive through restaurant facility on property located in the "Retail and Service Commercial" area of the Cannery Village/McFadden Square Specific Plan Area (2807 Newport Boulevard). The proposal includes a building design with two exterior walk -up order windows, an enclosed ancillary eating area, and an outdoor eating area. The proposal also includes a request to waive a portion of the required off - street parking spaces; a modification to the Sign Code so as to allow a ground identification sign and a ground mounted menu sign on the property, whereas the Sign Code allows only one pole or ground sign per site; and the use of the McDonald's logo on each of the six proposed directional signs. Report from Planning Department. Appeal application by Thomas E. Hyans, President on behalf of the Central Newport Beach Community Association, Balboa Peninsula Point Association, and Laith B. Ezzet. Volume 48 - Page 276 MINUTES (88) 3516 COUNCIL MEMBERS IOXO` \Mllk • CITY OF NEWPORT BEACH August 8, 1994 Letters in favor from Arnold D. Feuerstein and Allan Feinberg; and in opposition letters from Douglas M. Wood, Kent Stoddard, Ruth Hashell, Marion & John Selters, signed petitions from residents in the vicinity, and those collected by Dunes Marine Services. Letter from John & Betty Messmers addressing increased litter and environmental concerns. The City Clerk advised that after the printing of the agenda, five additional letters and a petition were received in opposition to the proposed McDonald's take -out restaurant. The Planning Director noted that this project was initially considered by the Planning Commission on April 7, 1994, went through a redesign and was subsequently approved by the Planning Commission on June 23, 1994, subject to the Findings and Conditions located on Pages 203 through 211 of the staff report. The vote was 4 ayes and 3 noes. This project is a drive -thru, walk -up, take -out, sit -down restaurant containing 1500 sq. ft., on a .408 acre site located at 28th Street between the northbound and southbound lanes of Newport Boulevard. The issues raised at the public hearing centered on hours of operation, pole, ground and directional signs, litter control program, vehicular access and on -site and pedestrian circulation. The Planning Director also made mention that in 1991, the Planning Commission considered a request by McDonald's for a restaurant one block closer to the ocean and two blocks further out on the Peninsula. This project was substantially different from the project before the City Council at this time, and was subsequently denied by the Planning Commission on March 7, 1991. As to the intensity of the proposed use and other uses which could be constructed on the site, the Planning Director commented that the site contains 17,772 sq. ft. A restaurant on this site would be allowed a maximum of 5,331 sq. ft. The proposed use is less than 1/3 of the permitted intensity. As to other retail or service commercial uses that might go on the site, the General Plan would allow a structure of 8,886 sq. ft. if a user can be found for the site. A building of this size would be over 5 times the size of the proposed building. The portion of the site which is vacant has been so for the past 25 years, and that portion of the site containing buildings has been used more recently by a florist and fishing supply store. Volume 48 - Page 277 MINUTES INDEX 3516 CITY OF NEWPORT BEACH COUNCIL MEMBERS 0 �^s ` August 8, 1994 RL11I_ CRLL MINUTES INDEX In response to questions raised by U/P 3516 Council Member Hedges regarding the Traffic Study for this project, Rich Edmonston, Traffic Engineer stated that the document focused on a typical weekday type operation, and the information that was gathered was done in conjunction with the City's Traffic • Phasing Ordinance which showed that they did not anticipate any traffic problems during a typical weekday. He stated their concern is what might occur on Summer weekends because of increased traffic on the Peninsula; however, they could not do any traffic comparisons inasmuch as there is not another McDonald's at a similar location and the study began before Summer. He has reviewed the numbers in the Traffic Study and felt they were reasonable. In response to question raised by Council Member Debay, Mr. Edmonston stated that the new Super Cycle program for traffic signals on Newport Boulevard was jointly developed with CalTrans and was in operation every Saturday and Sunday during the Summer months; however, there have been some technical problems recently with software and the program will not be reactivated for approximately 60 days. The Super Cycle gives an additional 30 seconds of green light to traffic leaving the Peninsula over and above the basic signal time. Jerry King, representing McDonald's, • walked the Council through the site by way of a slide presentation which showed: 1) proposed location, 2) other businesses in the area, 3) fast food restaurants in neighboring cities on Coast Highway, and 4) the original and revised plan. He stated that the McDonald's on Coast Highway across from the Balboa Bay Club is twice as large as that being proposed. He also submitted three letters in su000rt of the project from Douglas Salisbury, property owner on the Peninsula, Louis Masotti, resident of Cannery Village, and Rush Hill, 115 22nd Street. In conclusion, Mr. King urged that the Council sustain the action of the Planning Commission and approve the request of McDonald's. Tom Hyans, President, Central Newport Beach Homeowners Association, addressed the Council in opvosition to this project. He displayed an aerial photo of Cannery Village/McFadden Square and pointed out the residential areas in relation to the proposed McDonald's. He read a lengthy prepared statement citing a number of reasons for opposing the project, i.e., additional traffic, pedestrian safety, litter problems; • noise, employee parking, walk -in patrons, etc. He commented he did not feel McDonald's would be good for this area; that there are better uses for Volume 48 - Page 278 ROLL CRLL • • • COUNCIL MEMBERS NOPONA04 CITY OF NEWPORT BEACH MINUTES August 8, 1994 10110 island properties of this type; and that U/P 3516 the proposed project is "worse" than the project proposed by McDonald's three years ago. In conclusion, he urged the Council to overrule the decision of the Planning Commission and deny the request. The following persons also addressed the Council in oovosition to McDonald's proposal, citing many of the same concerns as the above speaker: Douglas Boyd, 2101 E. Balboa Boulevard, representing Balboa Peninsula Point Association Ed Ruzak, 10061 Talbert, Fountain Valley, Traffic Consultant hired by group of residents in the subject area who spoke on safety and circulation elements that should have been addressed in the Traffic Study Laith Ezzet, 2700 Newport Boulevard Marlynne Stoddard, 2700 Newport Boulevard Bill Shaver, 127 Via Nice Bill Cook, 2600 Newport Boulvard Carol Clark, 203 28th Street Roger Etherington, 2700 Newport Boulevard Joe Catron, 215 28th Street Philip J. Perota, Health Activist Dale Coons, 122 28th Street George Eggerton, 112 27th Street Mary and Gary A. Deperine, 2700 Newport Boulvard Richard Luehrs, President, Newport Harbor Area Chamber of Commerce, addressed the Council and spoke in favor of the proposed McDonald's stating that the project is consistent with the General Plan, Local Coastal Plan, and meets or exceeds all traffic and parking requirements; the plan is of a unique and quality design so that it will be of benefit to the area by having superior landscaping and an attractive one -of a- kind building to help improve the aesthetics of a currently blighted area; the concerns of adequate pedestrian flow have been adequately addressed by the Planning staff; the project will bring needed revenue to the City; and this project is being proposed by someone we all know who has been a good corporate neighbor. Additional individuals as follows also spoke in support of the proposed request indicating the design of the structure fits the local area; McDonald's has committed itself to many details imposed by the Planning Commission; and McDonald's has an excellent reputation for serving the community: Roy Jackson, owner of property on 31st Street Carlo Mione, 42 Seton Road Joe Belden, Newport Beach resident Shirley Phillips, 1420 W. Ocean Front (displayed photographs of the subject property being used as a parking lot on weekends) Volume 48 - Page 279 CITY OF NEWPORT BEACH COUNCIL MEMBERS Rni i cai���s���'� August B, 1994 INDEX Sid Soffer, 900 Arbor Street, Costa Mesa U/P 3516 Russ Fluter, 25 W. Balboa Boulevard Jerry King addressed the Council again and noted the following: 1) one of the problems with the ordinal plan in 1991 was a gross lack of parking, and as a result, is the reason for the new site; • 2) there will only be six employees working at the site at one time because of the size of the building; 3) the proposed site is in a commercial area and always has been designated as such; and 4) and health and environmental issues are being recognized by McDonald's and they lead the industry in terms of addressing this subject. Tom Hyans spoke in rebuttal and stated he felt that McDonald's will not bring more business to the area or more revenue to the City as thought by some people, and the reason to deny the project is traffic and the lack of a good internal circulation plan. Hearing no others addressing the Council, the public hearing was closed. In response to question raised by Mayor Turner regarding traffic accidents on the Peninsula, the Traffic Engineer commented that accident statistics up and down Balboa Boulevard show that there is no one concentrated location where accidents occur more frequently. If it is felt that a traffic signal is • warranted for the intersection of 28th Street and Balboa or Newport Boulevard, the estimated cost would be between $85,000 and $90,000. Motion x Council Member Hedges indicated he still had valid questions regarding the Traffic Study for this project, and sufficient enough to make a motion to overrule the decision of the Planning Commission and deny this request in accordance with the Findings for Denial as shown in Exhibit "B" of the staff report. Motion x Mayor Turner spoke against the above motion stating he walked this vicinity over the week -end and felt that something has to be done to "turn the area around ", and in view of McDonald's excellent reputation which he felt would bring some stabilization to the area, he moved a substitute motion to sustain the action of the Planning Commission and approve the request (Traffic Study No. 93 and Use Permit No. 3516) in accordance with the Findings for Approval as shown in Exhibit "A" of the staff report. Included in his motion, he • added another condition that would require the applicant, at the sole discretion of the City, to provide off - site parking for one or all of its employees, at any time that the City so stipulates. Volume 48 - Page 280 CITY OF NEWPORT BEACH COUNCIL MEMBERS �j, 5��` rG 69�� �`s �� � August 8, 1994 ROLL CRLL lidd`►L11W lPI11V Council Member Cox spoke in support of U/P 3516 the substitute motion in view of the blighted area and indicated he felt the project will be an economic vital asset to the City. Council Member Debay noted that because of the four public hearings before the • Planning Commission on this issue, this project has changed greatly to fit into this neighborhood; McDonald's has a reputation for winning awards for the cleanest restaurant site in town on Coast Highway; she has also walked the area and is concerned with pedestrian safety, and therefore, suggested Mayor Turner amend his motion to require McDonald's to install a traffic signal at 28th Street and Newport Boulevard if warranted. Mr. King stated that the applicant is willing to provide employee off - street parking if deemed necessary by the City. With regard to signalization, he suggested the Traffic Engineer take a look at this area with respect to the warrants as he felt it would be very expensive for the applicant to provide a traffic signal for a 1500 sq. ft. restaurant. He also suggested that possibly other future projects that will be forthcoming into the area could share in that cost. Discussion ensued wherein Mr. King addressed the Council again and stated • that the applicant is willing to finance the traffic signal (based on warrants), if there could be some type of sliding scale of reimbursement based on total square footage of redevelopment that comes into the area. Mayor Pro Tem Watt spoke against the substitute motion because of increased pedestrian traffic on Balboa and Newport Boulevards, particularly on weekends. She stated that she does agree that something has to be done to improve the blighted area, but feels that McDonald's will only add more congestion to this neighborhood. Council Member Hart stated she did not feel this was a bad project, and there are good aspects of it; however, no one knows an area better than the people that live there as evidenced by the public testimony and correspondence received; therefore, she will support the original motion. Council Member Hedges stated he is a proponent of revitalization on the Peninsula; however, the subject island • property needs more than a high - intensity restaurant on that site. He also felt that the City needs to take a" comprehensive approach to solving the circulation problem in the area prior to approving any projects at this location, and urged the Council to support his motion denying the request. Volume 48 - Page 281 CITY OF NEWPORT BEACH COUNCIL MEMBERS �`�' s9,L Fs vp"� ROLL C LL August 8, 1994 MINUTES INDEX Mayor Turner amended his substitute motion to include the requirement that McDonald'a fund a traffic signal at 28th Street and Newport Boulevard if it is warranted by study, and that staff work out some type of reimbursement method Ods x x x x with other developments as they occur. The substitute motion, as amended, was x x x voted on and carried. 33. Mayor Turner opened the public hearing Marine regarding report from Revenue Manager, Charter Finance Department for a proposed Tax Ordinance to establish a MARINE CHARTER (40) TAB, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADDING CHAPTER 3.32 To THE NEWPORT BEACH MUNICIPAL CODE ESTABLISHING A MARINE CHARTER TAB. The City Clerk advised that after the agenda was printed, a letter was received from Catalina Passenger Service in opposition to the proposed Ordinance. The City Manager reported that the subject proposal has been given a great deal of thought by the staff, and that a number of meetings over the past year have been held not only with the Budget Committee, but with the charter boat industry as well. As a result, the original proposal has been changed • significantly. Glen Everroad, Revenue Manager, addressed the Council and summarized the background connected with this issue as enumerated in his report noting as follows: "In 1993, this Harbor realized the fifth year of growth in the number of charter passengers by accommodating over 360,000 charter guests brought to town by the 88 businesses providing charter services in the City. "At the Budget Committee's request, a comparison of the level of contribution made by the marine charter industry in other California harbors was conducted and is included with the staff's report. This survey revealed that Newport Beach is the only harbor south of San Francisco not imposing a fee or tax on charter operations. The range of tax or fees collected by the agencies surveyed is from $1 each time a passenger crosses the dock in • Avalon to 14% of the gross revenues in the Port of Long Beach. Volume 48 - Page 282 COUNCIL MEMBERS ROLL • • • CITY OF NEWPORT BEACH August 8, 1994 "In each of the jurisdictions surveyed, a portion of this 'rent' payment is provided to the general fund to support the public safety and infrastructure services provided by the city or county in which they operate. Like these jurisdictions, the proposed tax will. be used to defray the costs of providing the general fund financed police, fire and infrastructure services that make Newport Harbor a more popular charter destination each year. "The Ordinance before the Council bases the tax on the ticket price paid by the passenger. There would be no tax on passengers paying a ticket price less than $26. Those paying between $26 and $50 would pay $.50 and those paying more than $50 would pay $1.00. "In the sample charter comparison with other harbors surveyed, the proposed tax would be half the cost of the cheapest agency surveyed. "In response to a recommendation from local charter businesses and the Chamber of Commerce to level the playing field and encourage the use of in -town vessels, a surcharge for each charter using an 'out -of -town' vessel is proposed. The surcharge proposed by the Chamber is included in the proposed Ordinance. Staff is also requesting Council's consideration of an exemption for passengers of the Harbor's Sportfishing operators. Committees reviewing the proposed tax presented their concerns for protecting the declining number of sportfishing and whale watching operations. Committee members and portions of the industry have argued that sportfishing and whale watching represent a unique historical aspect of this harbor and should be protected. The proposed tax structure effectively exempts whale watching passengera by not imposing a tax on the first $25 of ticket prices. The ticket prices on 3/4 day and overnight sportfishing would still subject this portion of sportfishing to the tax. Staff recommends Council exempt all sportfishing passengers from the tax. "The Ordinance under consideration proposes to exempt any existing contracts through June 30, 1995. Staff also recommends adding an exemption, not included in the Ordinance before the Council, for Catalina Passenger Service passengers until the service has Volume 48 - Page 283 MINUTES INDEX Marine Charter Tax COUNCIL MEMBERS s ROLL CRLL • • CITY OF NEWPORT BEACH August 8, 1994 obtained the required approval from the Public Utilities Commission to raise their rates. "This proposed Marine Charter Passenger Tax will reduce the disparity between Newport Beach and other harbors, reduce the general fund subsidy of the growing number of marine charter passengers to this harbor, and bring the charter industry closer to hotels and restaurants that generate significant revenues from the guests they attract to this harbor." It was noted in the staff report that the original structure presented to the Budget Committee last April proposed a tax of $.50 on a ticket price between $5 and $10, and $1 for any passenger paying more than $10 for passage on any marine charter. It was estimated to generate approximately $300,000 annually. The current proposal increases the threshold for imposition of the tax from $5 to $26. It establishes a $.50 tax on ticket prices between $26 and $50, and $1 tax on ticket prices over $50. The attached structure also establishes a surcharge of $50 for each charter of a vessel accommodating less than 50 passengers' and $100 for vessels accommodating 50 passengers or more if the vessel is not based in Newport Harbor. If Council elects to exempt sportfishing passengers from the tax, the estimated annual revenue from the proposal presented is $150,000. Beginning in July 1996, the proposed Ordinance would provide for the automatic annual adjustment of the tax and surcharge according to the Consumer Price Index. The proposed Ordinance would also exempt from the tax passengers on charters booked pursuant to contractual agreement in existence as of the effective date of the Ordinance, provided that the charter is completed prior to July 1, 1995. The following persons addressed the Council in opposition to the proposed Ordinance indicating that due to the current economy, this was not the appropriate time to raise taxes: Long Pham, 1529 V. Balboa Boulevard Sid Soffer, 900 Arbor Street, Costa Mesa Bob Black, Catalina Passenger Service James Person, 507 29th Street, representing Davey's Locker and Newport Landing Sportfishing, stated he felt that sportfishing operators should be exempt from paying any tax as his clients cannot compete if fees are raised. He discussed revenue generated by the City as a result of patrons Volume 48 - Page 284 MINUTES INDEX COUNCIL MEMBERS `n I 11A Gds ROLL CALL • Motion • i x CITY OF NEWPORT BEACH August 8, 1994 parking in the City's municipal parking lot, and revenue received as a result of sales tax on fuel, fishing tackle, food, etc., He also stated that 958 of his clients operations are outside the harbor. Richard Luehrs, President, Newport Harbor Area Chamber of Commerce, stated they support the proposed Marine Charter Tax; however, they do want to make sure that the smaller priced charter operations are exempt from the Ordinance. With regard to sport- fishing, they would prefer these types of operations be exempt from the tax, but at the same time, they do not want the City to tax the other charter operators twice as much to make up for the sportfishing exemption. Hearing no others wishing to address the Council, the public hearing was closed. The City Manager pointed out that beginning in July 1996, the proposed Ordinance would provide for the automatic annual adjustment of the tax and surcharge according to the Consumer Price Index. The staff has not thought about adjusting the rates based on the CPI. Mayor Turner stated that inasmuch as sportfishing operations have historically operated out of Newport Harbor and based on this historical tie to the harbor, he would move to straw vote that sportfishing be exempt from the proposed tax. Speaking to the above, the City Attorney recommended the exemption of sportfishing operations from the tax imposed be based on the following findings: 1) Fishing is a right guaranteed by the Constitution. 2) Sportfishing operations are treated differently than other businesses by State statutes relating to taxation. 3) Fishing and sportfishing is heavily regulated by the State of California. 4) Sportfishing has historically operated from the Newport Harbor. Council Member Hart indicated she did not feel this was the appropriate time to impose the proposed tax even though it would bring additional revenue, and she also felt it was piecemealing an issue that should have a "better thought out plan." Council Member Hedges stated, in part, that some of the comments made by staff on this subject have nearly "enraged" him because they were made in Volume 48 - Page 285 MINUTES H,ItI0 Marine Charter Tax COUNCIL MEMBERS ON - - 1\1 ON 1\01 � lk ROLL Y x Noes ly Motion • CITY OF NEWPORT BEACH l x l x l x x August 8, 1994 conjunction with some odious provisions within the proposed Ordinance, and he does not like this divide and conquer strategy. He also felt that straw - voting the sportfishing exemption is wrong because it is not fair to the other operators. The straw vote was voted on and carried. Motion was made by Mayor Turner to Introduce ORDINANCE NO. 94 -42, as amended, and pass to 2nd reading on August 22, 1994 for second public hearing. The Mayor stated his motion includes: 1) an exemption for sportfishiCng, 2) an exemption for Catalina Passenger Service passengers until the service has obtained the required approval from the PUC to raise their rates, and 3) amendment to the Ordinance providing for a CPI adjustment to the rates. Council Member Sansone stated he views this issue as a tax increase and will not support the motion. Council Member Hedges summarized various provisions in the Ordinance which he objected to and indicated he felt it was wrong for the City to impose this tax in order to make up for the City's budget "shortfall." Council Member Debay spoke in support of the proposal stating she is concerned with the charters who come into the harbor and park free, and only have to pay the City $42 for each charter. Those same charters cruise through the harbor, using the City waterways, and she felt they should have to pay some type of fee. Council Member Cox stated that Council Members Hedges and Sansone have their point of view on this matter; however, the way in which they characterized this issue is a disgrace to the individual who presented it. This City operates very similar to private enterprise in that it has to look at ways to generate revenue in order to continue to provide quality service. He stated that hotels within the City have to pay a fee to the City; restaurants pay a fee for visitor serving; and now 300,000 marine charter passengers a year come along and pay nothing to the City. In his opinion, he does not find this fair to the local restaurants and hotels who are operating in good faith. He felt it is hardly raising taxes when one is attempting to balance the budget to provide quality service and make sure the City is getting an equity stream coming from all sectors of the community. He complimented staff for all their efforts in this regard and urged the Council to support the proposal. Volume 48 - Page 286 Itii 11"V INDEX Marine Charter Tax CITY OF NEWPORT BEACH COUNCIL MEMBERS s � ROLL C LL 0.... L1-1x1X1-1X1x • • August 8, 1994 Council Member Hart stated she will vote against the proposed Ordinance because the Ordinance "is not geared to what is being said here this evening," and because of the exemptions. She also felt "we are not hitting the businesses we want to hit." The motion was voted on and carried. 34. Mayor Turner opened the public hearing regarding VARIANCE NO. 1196 - Request to permit the construction of a single family dwelling on property located in the R -1.5 District which exceeds 1.5 times the buildable area of the site. The proposal also includes modifications to the Zoning Code so as to allow the proposed structure to encroach 14 feet into the required 20 foot front yard setback, and 7 feet into the required 10 foot rear yard setback, a request to construct 6 foot high walls along the side property lines which encroach 15 feet into the required 20 foot front yard setback; and two carport spaces located on the front one -half of the lot, partially open on both sides (where the Code requires that said covered parking spaces shall have side walls and an operating garage door). The modification also includes the following second fluor encroachments into the required 3 foot side yard setbacks; one bay window; one greenhouse window, a heat duct; a portion of the living room; and a planter box; on property located at 1508 Park Avenue, Little Balboa Island. Report from Planning Department. The City Clerk advised that after the agenda was printed, a letter was received from James and Kathryn Dunlap, 201 Abolene Avenue, in opposition to the requested Variance. The Planning Director stated this is a request to exceed 1.5 times the buildable area of the site on a Little Balboa Island lot that is 301 x 601 with no alley access. Compared with a typical Little Island lot which is 30' x 85' that has alley access, the prepared lot is 298 smaller or 750 sq. ft, smaller than the average Little Island lot, and because of the fact it has no alley access and has a 10 foot front yard setback and 10 foot rearyard setback, the buildable area of the lot is 608 smaller than a typical Little Island lot or 1,080 less of buildable area. In the past when the Planning Commission and City Council have run up against this type of situation, they took a look at the size of the dwelling that would be allowed using 1 -1/2 x the buildable area of the lot, and proportionately how large that dwelling is to the land area within that lot. That ratio works out to be 1.06. The Volume 48 - Page 287 MINUTES 1196 (91) COUNCIL MEMBERS s ROLL C LL • • CITY OF NMORT BEACH August 8, 1994 proposal 'before the Council at this time has a ratio of 1.06 and was arrived at by the Planning Commission working with the applicant on three different occasions to try and get the size of the proposed structure down to 1,910 sq. ft. within the building. Because of the fact that this structure is located on a street with no alley access, the applicant is required to build a garage on the front one -half of the lot where typically cars are housed in a carport. As a result of a 390 sq. ft. garage, the applicant is left with 1,520 livable area which consists of two bedrooms, 2- 1/2 baths, family room, kitchen, living room and dining room area. This was considered by the Planning Commission on July 7, 1994 with 4 ayes, 1 noe and 1 absent. Council Member Watt stated this issue was called up and set for hearing because of the intensity of the proposed three -story structure as it affects height, and explained the two different formulas which were used in arriving at the allowable floor area. D.W. Chese:bro, Applicant, addressed the Council and distributed a hand out of Square Foot Comparisons of 30 x 60 lots similar to the property in question, a site plan, and a drawing of cross sections of his property and the two adjoining properties which he outlined. He stated that the house is for his wife and himself; he met with City staff prior to having plans drawn, and based on that information, he had the house designed to meet all the City's code regulations, including the height limit. Sid Soffer, 900 Arbor Street, Costa Mesa, addressed the Council and discussed setback regulations in general. Steve Bromberg, 1506 Park Avenue, addressed the Council in opposition to the Variance stating he felt the structure was too large for the size of lot; the applicant's property is a horseshoe -type lot and surrounded by three properties and not the same as a 30 x 60 ft. lot; if the building is allowed, it will impact those three properties severely; the 20 foot frontyard setback and the 10 foot rearyard setback is unreasonable; the applicant should only be permitted to have what was given to the adjoining neighbors. James Dunlap, 201 Abalone Avenue, also addressed the Council in opposition to the Variance, stating he felt the structure should be built "no larger than it needs to be" and felt that 1 -1/2 x the buildable area is the appropriate formula to follow. Volume 48 - Page 288 W111100 INDEX Variance 1196 CITY OF NEWPORT BEACH COUNCIL MEMBERS CflLL F August 8, 1994 • • Motion • x Marianne McDaniel, 127 Jade Avenue, President, Little Balboa Island Association, addressed the Council in opposition to this request stating that the applicant originally presented his proposal Ito the Planning Commission and was asked to reduce some of the square footage, and as a result, the applicant removed two exterior walls, thus removing a room within the proposed structure.. She indicated her concern was that these walls could be put back at some point in time, thus increasing the square footage. She felt the third story is a dangerous precedent to start, and felt it would be more equitable to place the third -story on the lower floor to be more conforming with the homes on Little Island inasmuch as there are only two three -story homes on their Island. Kenneth Lindahl, 202 Grand Canal, addressed the Council and read a letter from Bing Geerling, 200 Crystal Avenue, in opposition to this Variance. He stated that, speaking for himself, he felt the "rules on the books should be complied with and not what the applicant thinks should be allowed." In response to question raised by Council Member Watt, the City Attorney stated that since the applicant is asking for a Variance to the floor area ratio limits in the Code, and since floor area is a bulk issue, he felt the Council has the right to impose a condition on the Variance that would limit the height of the structure inasmuch as height is also a bulk issue. Council Member Watt stated that in considering this Variance, she felt the setbacks should be consistent with the neighbors which is 6 ft. front, 5 ft. rear and 3 ft. sides, and that the floor area should be based on 1 -1/2 x the buildable. With these revisions the floor area turns out to be 1764 sq. ft. Therefore, she moved a motion to modify the decision of the Planning Commission accordingly, with the added condition that the structure be limited to two floors. In view of the foregoing motion, the City Attorney suggested the motion include the following Finding: "The additional floor area granted by the Variance would increase the bulk of the building to an unacceptable level without the second floor limitation." Council Member Debay stated she will not be supporting the motion as she felt it was similar to "changing the rules in the third quarter of the game." Volume 48 - Page 289 MINUTES Variance 1196 CITY OF NEWPORT BEACH COUNCIL MEMBERS R(11 I CR \s \\ � �GI A August S. 1994 MINUTES INDEX Motion x Council Member Hedges indicated this Ayes x x x x Variance was considered in depth by the Noes x x x Planning Commission; he has viewed the site; it is a relatively small house, and therefore, moved a substitute motion to sustain the decision of the Planning • Commission and approve Variance No. 1196 which motion carried. PUBLIC COMMENTS Dean Reinemann, 8 Sandflower Court, addressed the Council and read into the record a letter sent to the California Coastal Commission regarding Permit Number 5 -93 -356 by the City of Newport Beach concerning construction of approximately 1.2 miles of a 36" diameter water transmission pipeline, a three million gallon storage reservoir, and approximately 5,950 square feet of additional building area at the existing City Utilities yard. He stated that the Coastal Act requires a permit before work can begin, and a permit hearing is scheduled for August 11, 1994 in Long Beach; however, work has already begun on the project prior to receiving that approval. Additionally, work was stopped because of discovery of an earthquake fault and then restarted. Mr. Reinemann stated that the question is "does the City of Newport Beach have to follow the law with respect to the • Coastal Act ?" He stated he knew what would happen to him or anyone else if they began a project in the City without the benefit of a permit, and he questioned "why does not my City follow the law as he finds no good reason for this action." The City Manager stated that the portion of the project that falls within the Coastal Zone has not been started, however, work has begun on that portion which is outside the Coastal Zone. He stated he would be happy to meet with Mr. Rinemann if he would contact his office for an appointment. ORDINANCES FOR ADOPTION 35. Report from City Attorney regarding an "Urgency "urgency" ordinance authorizing rdinance PLACEMENT OF POLITICAL SIGNS. 4 -43 The City Attorney advised that the key (39) provisions of the proposed Urgency Ordinance are as follows; 1. Political signs may be posted in residential districts for a period of 90 days prior to any municipal, school district, or • statewide election; 2. Political signs must be removed within 10 days after the election. Volume 48 - Page 290 CITY OF NEWPORT BEACH COUNCIL MEMBERS P01 CRLL August 8, 1994 u Motion All Ayes Motion All Ayes Motion Motion Green Red • MINUTES INDEX viation/ d Hoc CAC [arine /PW ip tms 51/65) Tun Zone Soat Co. 3. Political signs in residential areas may not exceed 6 square feet; 4. The time within which temporary signs in commercial districts may be displayed is increased from 60 days to 90 days to conform with the residential standards; 5. There is an absolute ban on posting signs on public property. X Following discussion, motion was made by Mayor Turner to adopt "URGENCY" ORDINANCE NO. 94 -43. CONTINUED BUSINESS 36. AVIATION COMMITTEE COUNCIL/CITIZENS AD HOC COMMITTEE: X Motion was made by Mayor Turner to appoint Clinton Rygel as the Representative from Corona del Mar to the Aviation Committee. The names of George Parker and Harry Merrill were offered for the Alternate to Mr. Rygel. x Council Member Hedges indicated he felt the City should advertise for the position of Alternate, and therefore, made a motion to defer action on this appointment at this time. X Substitute motion was made by Mayor Turner to make the Alternate selection this evening, and therefore: x x George Parker was assigned the green light. X x x x x Harry Merrill was assigned the red light. Harry Merrill was appointed as the Alternate. CURRENT BUSINESS 37. Reports from Public Works Department and Marine Department regarding: A. FUN ZONE - Proposed ticket bootie and office building in the public access easement in front of the Fun Zone; and B. HARBOR PERMIT APPLICATION 112- 600 BY FUN ZONE BOAT COMPANY for a revision to the docks bayward of 600 Fast Bay Avenue. The City Clerk advised that after the agenda was printed, a letter was received from Paul M. Medina, 307 Medina Way, in opposition to the application for a ticket booth and office building. Volume 48 - Page 291 INDEX viation/ d Hoc CAC [arine /PW ip tms 51/65) Tun Zone Soat Co. COUNCIL MEMBERS CITY OF NEWPORT BEACH August 8, 1994 MINUTES TNnFX The 'Public Works Director stated that Fun Zone the Encroachment Permit part of this Boat Co. application is a proposal by the Fun Zone Boat Company to construct a 10 foot x 14 foot office ticket selling facility in the public easement adjacent to the Fun Zone immediately behind the • bulkhead. He referenced the plot plan attached to the staff report and the drawings on display which depicted the area where the proposed building is intended to be located. The staff is recommending against this application because of the impact on the public easement, public views, and the public use of the area. However, if the Council is interested in granting something similar to the request, the staff has suggested some rather restrictive conditions in the staff report. Ray Handy, 44 Whitewater Drive, Applicant, stated that they are a family -owned business located at 700 Edgewater and have been there 23 years. He discussed their proposal, noting they would like to construct a 10' x 14' building from which, among other things, they will be able to observe passengers loading and unloading; they are very serious about the safety of their operation; and they are currently working on a contract to bus passengers into the area for a 4 -hour period of time. He addressed the 11 Conditions of • Approval set forth in the staff report, commenting that Condition No. 1 should be changed. to reflect 140 sq. ft. as opposed to 64 sq. ft.; Conditions No. 4, 5 and 7 are not necessary in his opinion; Condition No. 9 - suggested loud speaker be permitted to advertise their use; and Condition No. 10 - suggested it be made on a 1 -year basis so that renewal is not necessary after that time. Joe Tunstil.l, 600 E. Ocean Front, stated he started working at the Balboa Fun Zone in 1950 and recently purchased the property. He stated he was in support of the request by Hr. Handy to move the tour boat operation from its present location next to the Pavilion, to a now location next to the ferry landing. He discussed proposed new handicapped access and their desire to accommodate the public in this regard which is not at the current location. In between speakers, the Public Works Director indicated that, although not separately mentioned in the staff report, a Coastal Zone Permit will be • required for this project. Steve Barrett, 177 Riverside Drive, spoke in favor of the subject application and stated he felt it will be of benefit to the public and a win - win situation for everyone. He stated Volume 48 - Page 292 COUNCIL MEMBERS ROLL • Motion • • x CITY OF NEWPORT BEACH August 8, 1994 they will be revising the Fun Zone Marina after the appropriate permits are issued; he discussed the purpose of the module structure, and pointed out some inaccuracies, in his opinion, that he had noted in the staff report. Brad Bradford, 299 Robinhood Lane, representing Champagne Cruises, addressed the Council and distributed a brochure outlining their guided tours arriving in Newport Beach via the hotel operators they work with. The tours consist of 120 passengers arriving in three luxury coaches, and includes not only the 2 -hour narrated Champagne Cruise, but breakfast at the Balboa Pavilion, lunch at Newport Landing, stop at Newport Pier, shopping at Lido Village, dinner at a local restaurant, and tour and shopping at Fashion Island. Notion was made by Council Member Hedges to approve: the proposed ticket booth and office building in the public access easement in front of the Fun Zone, with the stipulation that said structure be as attractive as possible, and subject to the following revised conditions: 1. That the building have no more than 140 sq. ft. and be relocatable. 2. That the upper portion of the building have as much clear glass area as is structurally feasible. 3. That the building be placed as near to the Ferris wheel enclosure as is practical to provide convenient access to both uses. 4. That an Encroachment Agreement be executed which will provide for these conditions and the other normal conditions that are attached to private uses in public easement areas. (The proposed requirement for recordation of the subject agreement was deleted). 5. That an Encroachment Permit issued by the Public Works Department be required for the work done in the Public Access easement area. 6. That any public facility disturbed by the proposed use be replaced in a location acceptable to the Public Works and Planning Departments, unless it is determined that there is insufficient room for the relocation. Deleted Volume 48 - Page 293 MINUTES INDEX 'un Zone ;oat Co. CITY OF NEWPORT BEACH Loci] IILI (=ii10 1 .610114 ROLL CRL�L��ss��� • Ayes x x x x x x Noes x MINUTES August 8, 1994 S. That an appropriate insurance Fun Zone policy be provided which insures Boat Co. that the City is protected from any liability related to the proposed private use of the public easement area. 9. Deleted 10. That the City Council can rescind the agreement at any time for reasons of public access upon proper notice to the applicant. 11. That a Harbor Permit be obtained for any use and /or work on the bay side of the bulkhead. Council Member Hedges stated his motion also included approval of the Harbor Permit Application No. 112 -600. Council Member Hart spoke against the motion indicating she felt that offices should not be allowed in a dedicated public right -of -way. She stated however, she was not opposed to the Harbor Permit Application also under consideration. The City Attorney requested that he be authorized to prepare appropriate Findings for Approval of the ticket booth and office building for consideration at the next Council meeting so that a precedent is not created for similar applications in the future, to which there were no objections. Following discussion, the motion was voted on and carried. Adjourned meeting at 1:38 a.m., August 9, 1994. The agenda for this meeting was posted on August 3, 1994 at 2:30 p.m., and supplemental agenda posted on August 5, 1994 at 4:30 p.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. �Mlllllllw Volume 48 - Page 294