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HomeMy WebLinkAbout03/23/2004 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting March 23, 2004 - 7:00 p.m. STUDY SESSION - 5:00 p.m. CLOSED SESSION - 6:15 p.m. INDEX A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Absent: None C. CLOSED SESSION REPORT - Mayor Ridgeway reported that the City Council unanimously approved a settlement in the Campbell case. The City Council also met with, and gave direction to, its labor negotiators with respect to the Marine Safety Officers Association and the Police Employees Association. The City Council discussed the appointment of a person to fill the position of the City Attorney when the incumbent retires. Lastly, the City Council discussed anticipated litigation involving the special circumstance variance granted to the owners of 505 J Street and authorized the City Attorney to enter into a tolling agreement that would extend, for a limited period, the time within which a writ of mandate challenging that variance could be filed. D. PLEDGE OF ALLEGIANCE - Mayor Pro Tem Adams E. INVOCATION - Helen McFarland, Second Church of Christ Scientist F. PRESENTATIONS - Mayor Ridgeway noted the donation by Karl Malone of the Los Angeles Lakers, and his agent, Dwight Manley, of $40,500 each for the purchase of defibrillators for the Police Department, as reported in the Orange County Register. Mayor Ridgeway additionally acknowledged Earl Fusselman, Sandy R Rob Meadows and the American Legion for their combined contribution of $10,500. G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): Council Member Nichols requested that a follow -up to the discussion on Volume 56 - Page 772 City of Newport Beach Regular Meeting March 23, 2004 I. group homes be brought back to the City Council. • Council Member Webb thanked "Go & Do Likewise' for their clean -up efforts at the property located at Dover Drive and Leila Lane. • Council Member Bromberg announced that a town hall meeting will be held on March 28, 2004, at 2:00 p.m. at the Balboa Island Fire Station to discuss the Marine Avenue streetscape program. • Council Member Bromberg announced that this year's Relay for Life in Newport Beach will be held on May 14 and 15, 2004. The 24 -hour fundraising event is sponsored by the American Cancer Society. More information can be obtained by contacting Stephanie Taylor at 949 -567- 0611. • Council Member Heffernan stated that there are still gaps in the cell phone system within the city and requested a report on the results of the cell site ordinance that was adopted by the City Council last year. He specifically requested that the report include information on how many companies have applied for cell site permits and how many times the City is expected to be a landlord. • Mayor Ridgeway announced that the Friends of the Library are in need of books for their book store at the Central Library. For more information, contact the Friends of the Library at 949 - 759 -9667. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. Item removed from the Consent Calendar by a member of the audience. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. RESOLUTIONS FOR ADOPTION 3. RESOLUTION TO EXPAND THE MEMBERSHIP OF THE CITY CENTENNIAL 2006 COMMITTEE. Adopt Resolution No. 2004 -24 expanding the membership of the Centennial Committee to include the Directors of the Recreation & Senior Services Department and the Library Services Department; a member from the Newport Beach Chamber of Commerce; the Newport Beach Conference & Visitors Bureau; the Nautical Museum; and seven citizens. 4. TERMINATION OF NON - EXCLUSIVE COMMERCIAL SOLID WASTE FRANCHISE AGREEMENT. Adopt Resolution No. 2004 -25 terminating the solid waste franchise agreement between the City of Newport Beach and C &N Waste Services. Volume 56 - Page 773 INDEX (100 -2004) Solid Waste Franchise Agreement (42/100 -2004) City of Newport Beach Regular Meeting March 23, 2004 CONTRACTS AND AGREEMENTS INDEX NEWPORT SHORES HOMEOWNERS ASSOCIATION - C- 3669(A) APPROVAL OF LANDSCAPE MAINTENANCE AGREEMENT. Newport Shores 1) Approve a Landscape Maintenance Agreement with the Newport Landscape Shores Homeowners Association for public and private improvements; Maintenance 2) authorize the City Manager to execute the Agreement; and Agreement 3) authorize the City Clerk to record the Agreement with the County (381100 -2004) Recorder. 6. Item removed from the Consent Calendar by Council Member Nichols. 7. Item removed from the Consent Calendar by Council Member Nichols. 8. IRVINE AVENUE 12 4NCH WATER MAIN REPLACEMENT, SHERINGTON PLACE TO DOVER DRIVE - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3450). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council Acceptance. 9. SIDEWALK, CURB AND GUTTER REPLACEMENT PROGRAM (FY2003 -2004) - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3629). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council Acceptance. 10. BALBOA ISLAND BAYFRONT REPAIRS FY2002 -2003 - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3554). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council Acceptance. 11. BALBOA BOULEVARD CATCH BASIN FILTERS - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3670). 1) Accept the work; and 2) authorize the City Clerk to file a Notice of Completion. 12. MARINERS VILLAGE LANDSCAPE IMPROVEMENTS - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3612). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Volume 56 - Page 774 C -3450 Irvine Avenue 12 -Inch Water Main Replacement (38/100 -2004) C -3629 Sidewalk, Curb & Gutter Replacement Program (38/100 -2004) C -3554 Balboa Island Bayfront Repairs (381100.2004) C -3670 Balboa Boulevard Catch Basin Filters (38/100 -2004) C -3612 Mariners Village Landscape Improvements City of Newport Beach Regular Meeting March 23, 2004 Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council Acceptance. 13. NEWPORT BOULEVARD FROM 26TH STREET NORTHERLY — AWARD OF CONTRACT (C- 3649). 1) Approve the plans and specifications; 2) award the contract (C -3649) to Griffith Company for the total bid price of $160,950 and authorize the Mayor and the City Clerk to execute the contract; 3) establish an amount of $16,000 to cover the cost of unforeseen work; and 4) approve geotechnical services in the amount of $5,000. 14. NEWPORT BOULEVARD AND BALBOA BOULEVARD MERGER (MDXIASTER) — AWARD OF CONTRACT (C- 3654). 1) Approve the plans and specifications; 2) award the contract (C -3654) to GMC Engineering, Inc. for the total bid price of $282,887.25 and authorize the Mayor and the City Clerk to execute the contract; 3) establish an amount of $28,000 to cover the cost of unforeseen work; and 4) approve geotechnical and survey work in the amount of $4,700. 15. OCEANFRONT WALKWAYS (MCFADDEN SQUARE) — AWARD OF CONTRACT (C- 3660). 1) Approve the plans and specifications; 2) award the contract (C -3660) to Trademark Concrete Systems, Inc. for the total bid price of $104,331, and authorize the Mayor and the City Clerk to execute the contract; and 3) establish an amount of $10,000 to cover the cost of unforeseen work. 16. APPROVAL OF TWO CONTRACTS FOR THE INTEGRATED LAW AND JUSTICE PROJECT. 1) Approve a contract with Computer Deductions, Inc. (CDI) in the amount of $107,783.50 from Account #7017 - C1820747 to improve network configurations and security requirements for nine municipal police departments as approved by the Steering Committee for the Integrated Law and Justice Project in Orange County; and 2) approve a contract with Deloitte Consulting in the amount of $220,000 from Account #7017- C1820746 to facilitate the design and implementation of a pilot project involving data sharing between records management systems (RMS) in the criminal justice agencies in the County of Orange, as approved by the Steering Committee of the Integrated Law and Justice Project in August of 2002. MISCELLANEOUS ACTIONS 17. Item removed from the Consent Calendar by Council Member Heffernan. 18. BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE NEWPORT BEACH LIBRARY FOUNDATION AND APPROPRIATE FUNDS TO MAINTENANCE & OPERATIONS BUDGET ACCOUNTS AND REVENUE ACCOUNTS FOR FY 2003/04. Approve a budget amendment (04BA -041) in the amount of $9,350. Volume 56 - Page 775 INDEX (38/100 -2004) C -3649 Newport Boulevard from 26th Street Northerly (38/100 -2004) C -3654 Newport Blvd. and Balboa Blvd. Merger (Mixmaster) (38/100 -2004) C -3660 Oceanfront Walkways (McFadden Square) (38 /100 -2004) C- 3692(A) C- 3692(B) Integrated Law and Justice Project (38/100 -1004) (100 -2004) City of Newport Beach Regular Meeting March 23, 2004 19. HUDUET AMENDMENT TO AUUhl'T A UHKUK FROM CALIFORNIA STATE LIBRARY AND APPROPRIATE FUNDS TO MAINTENANCE AND OPERATIONS. Approve a budget amendment (04BA -042) in the amount of $10,643. 20. PURCHASE OF THERMAL IMAGING CAMERAS. Waive bidding process requirement and approve the purchase of three ISG K -1000 Hi- Resolution Micro - Bolometer Thermal Imaging Cameras for $41,086.13 from Allstar Fire Equipment with grant funds. 21. Item removed from the Consent Calendar by Council Member Nichols. 22. RELEASE OF SURETY FOR CONCRETE ALLEY EXTENSION STRUCTURE ADJACENT TO 405 GOLDENROD AVENUE — ENCROACHMENT PERMIT NO. N2001 -0110. 1) Accept the concrete alley extension work in conjunction with Encroachment Permit No. N2001 -0110; and 2) authorize the City Clerk to release the $8,000 refundable faithful performance surety retained by the City as a guarantee for completing the remaining alley extension work. S31. APPOINTMENT TO THE ENVIRONMENTAL QUALITY AFFAIRS CITIZENS ADVISORY COMMITTEE. Confirm Council Member Rosansky's appointment of Merritt Van Sant as the District 2 at -large representative to the Environmental Quality Affairs Citizens Advisory Committee (EQAC). Motion by Mayor Pro Tern Adams to approve the Consent Calendar, except for the items removed (1, 6, 7, 17 and 21). The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None 17. FINANCIAL IMPACT OF THE STATE BUDGET PROPOSAL AND RELATED ISSUES. [Taken out of order]. Mayor Ridgeway received no objection to taking Item No. 17 out of order. City Manager Bludau stated that the staff report includes a list of revenue sources that the City used to receive from the State, but no longer does. He stated that these have been lost over a period of time, with the most significant being the shift in property taxes from local government to schools in 1992 -1993. He stated that the loss to Newport Beach totals $56 million over the last fifteen years. In addition to the loss in revenue, the City is also facing an increase in pension costs. City Manager Bludau listed the assumptions that he and the Administrative Services Director made when preparing the preliminary budget for 2004- Volume 56 - Page 776 INDEX (100 -2004) (100 -2004) (100 -2004) (100 -2004) (100 -2004) City of Newport Beach Regular Meeting March 23, 2004 2005. The initial budget estimates indicated an operating deficit of approximately $1.5 million, but the deficit has been reduced to approximately $100,000 by knowing better what the current revenues are and making adjustments to the 2004 -2005 revenue estimates. He stated that the departments have also cooperated. City Manager Bludau reported that there are still some concerns, but that Newport Beach is in better shape than many other cities and the City Council has done a good job of being fiscally conservative and responsible. He stated that the tradeoff of sales tax, to be used for State bond funding, for property tax is being called the "triple flip' by the State and that cities have no control over it. He stated that it will take effect July 1, 2004, and is supposed to have no impact since the amount taken in sales tax would be equal to the amount returned in property tax. Mayor Ridgeway confirmed with City Manager Bludau that the State will force the "triple flip" legislation on cities as a way to take care of their bond financing. Mayor Ridgeway stated that at a recent Mayor's luncheon, no one was in support of the legislation. Council Member Heffernan thanked the City Manager for the report and noted the importance of keeping the public informed. City Manager Bludau stated that the public needs to understand that when they read about the State taking money from local government, it's money that's being taken from the residents. Mayor Ridgeway stated that it's a difficult time for most cities and Newport Beach is fortunate to have a status quo budget. Dolores Otting asked what amount the City will be paying for the Public Employees Retirement System (PERS) this year. City Manager Bludau stated that he would provide Ms. Otting with the amount. Jim Hildreth stated that salary increases were recently given to the City Clerk, City Manager and City Attorney. He stated that he sees a lot of waste in the City and that the citizens shouldn't have to suffer the consequences of impropriety of funds. He stated that the purse strings should be tightened. J. PUBLIC HEARINGS 23. BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT RENEWAL: CONDUCT PUBLIC HEARING AND ADOPT RESOLUTION FOR RENEWAL OF THE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR 2004 -2005. Senior Planner Campbell stated that no protests for the Business Improvement District (BID) were received. The budget for the BID is approximately $25,000 per year and the money is used for marketing, events and minor physical improvements. Mayor Ridgeway opened the public hearing. Volume 56 - Page 777 INDEX (100 -2004) City of Newport Beach Regular Meeting March 23, 2004 Hearing no testimony, Mayor Ridgeway closed the public Motion by Council Member Bromberlz to adopt Resolution No. 2004 -26 confirming the levy of the BID assessment for the 2004 fiscal year. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None 24. CALL FOR REVIEW OF USE PERMIT NO. 2003 -043 AND TRAFFIC STUDY NO. 2004 -001, APPROVED BY THE PLANNING COMMISSION ON MARCH 4, 2004 — 494/496 OLD NEWPORT BOULEVARD (PA2003 -232). Associate Planner Ramirez stated that the Planning Commission determined the findings that could be made for the project to exceed the 0.5 Floor Area Ratio (FAR) and decided to go with a 1:250 parking ratio for the medical office building development. The Planning Commission further determined that granting an off - street parking credit for two of the on- street spaces was allowed under the provisions of the Old Newport Specific Plan and was acceptable. Associate Planner Ramirez reported that this resulted in a total of 47 parking spaces and using the 1:250 parking ratio, it was determined that a gross floor area of 11,750 square feet was appropriate for the development. Mayor Ridgeway recalled that the Planning Commission, in the past, has encouraged redevelopment in the Old Newport Boulevard area. He felt that the current project fit within that goal. Associate Planner Ramirez agreed and stated that the Specific Plan allows the Planning Director to grant a FAR above the standard 0.5, up to 0.75 at the director's discretion. Steve Olson, an owner of the proposed project and speaking on behalf of James Mathersroud and Robert Lawrence, stated that the Planning Commission approved a reasonable compromise to their original submittal. Using a PowerPoint presentation, Mr. Olson explained that the Old Newport Specific Plan encourages the lot consolidation of existing parcels and that the proposed project does this. He stated that the, proponents of the project also want the City Council to consider a street vacation along Orange Avenue, which would create a project site of 18,418 square feet. Mr. Olson displayed photos of the current site and use. He stated that the City Council is being asked to approve an 11,750 - square foot medical/professional office building at a 0.63 FAR, and that the vacation will allow for additional landscaping in the area of the site and improvements to the neighboring residential areas. He specifically explained that the project would include the replacement of the sidewalk, curb and gutter on Orange Avenue from the corner of Old Newport Volume 56 - Page 778 INDEX (100 -2004) City of Newport Beach Regular Meeting March 23, 2004 INDEX Boulevard to Clay Street. Mr. Olson continued to display photos and illustrations of the area and site, and stated that the traffic study and the parking study both found no significant adverse or negative impacts to the area. He detailed other aspects of the project that take the neighbors concerns into consideration. Council Member Nichols confirmed with Mayor Ridgeway that the vacation is on one side of the street only. Mayor Ridgeway opened the public hearing Jim Hildreth stated that he hates to see the muffler shop go, which is currently on the site. He also felt that there isn't much traffic in the area, but that visibility is poor as one travels south on Old Newport Boulevard. Ryan Dodd stated that the redevelopment of the Old Newport Boulevard area is long overdue and much needed. He stated that the area needs to be cleaned up. Stacy Wise distributed photos of the area. She stated that she is concerned about the off- street parking in the area, and noted that there is already an overflow of parking on the streets and into the surrounding residential areas. She stated that the intention of the Specific Plan was to bring a village atmosphere to the area, but that the medical buildings have changed the theme dramatically. She further noted that the City is also considering using Old Newport Boulevard to divert traffic from the Newport Heights residential area. Ms. Wise stated that she doesn't oppose the project, as a whole, but feels that the different usage of medical buildings should be taken into consideration. John Ogburn stated that limited parking is a way of life in Newport Beach and street parking is part of the quaint nature of the city. He stated that redevelopment should be done where it can and that he supports the project. Mark Manderson stated that the project proponents have fully cooperated with the neighbors, and that the enhancements to the intersection, curbs, gutters and sidewalk will improve safety in the area. He expressed his support for the project and stated that a medical building is needed in the area. Hearing no further testimony, Mayor Ridgeway closed the public hearing. Council Member Rosansky stated that he called the matter up for review. He agreed with the intent of the Specific Plan to encourage redevelopment in the area and expressed his support for the project. He stated that the Specific Plan includes provisions for the City to grant "bonuses" for those projects that consolidate lots or improve the area. Council Member Rosansky noted that the standard 0.5 FAR would allow for 9,000 square feet to be built at the proposed site. He stated that the 11,750 square feet that was approved by the Planning Commission was Volume 56 - Page 779 City of Newport Beach Regular Meeting March 23, 2004 INDEX one of the bonuses that was given to the project proponents. In addition, other bonuses include the approval to exceed the bulk size requirements and the vacation of a portion of the street that the City owns. Council Member Rosansky noted that there are traffic and parking problems in the area, and that the parking requirements for medical /dental buildings are currently being studied by the City. He disagreed with allowing two on- street parking spaces to count towards the parking requirements for the proposed project. He stated that the City has met its obligation to encourage and assist the redevelopment and has already provided several bonuses to the project proponents, but that the two on- street parking spaces should not be counted and only 11,250 square feet should be allowed. Council Member Webb also agreed that the two on- street parking spaces should not count towards the project's parking requirements and that there is already an overflow of parking in the area. He specifically noted that one of the spaces may not be feasible anyway, due to a large catch basin that is in the way. Council Member Webb further suggested that a condition be added that requires the employees to park on site, and asked if another condition should be added regarding the improvements that were mentioned for Orange Avenue. Public Works Director Badum stated that it could be added, but that it is the intent of the applicants. Council Member Webb felt that it should be added, and explained that Orange Avenue is an entrance into a residential area. He stated that it's important that the project include a minimum five -foot landscaping strip, which would lead into a larger landscaped area on the property next to Clay Avenue. He stated that he will be making a recommendation to modify the setbacks and require that 50% of the setback be used for landscaping for approval of the vacation, which is to be discussed during the next item on the agenda at the current meeting, Item No. 25. Council Member Heffernan stated that he still believes that when a matter is called up for review that the reason for the appeal be given. He stated that this allows staff and the applicant to work together on the issues prior to the City Council meeting. He stated that it's fairer to the applicant and a more effective use of time. Council Member Rosansky stated that he and Council Member Webb both met with the applicant and the architect, and expressed their objections to the project prior to the current meeting. Council Member Nichols stated that he also met with the project proponents, and felt that the setback and the parking requirements were appropriate for the project. He expressed his support for the project. Council Member Bromberg stated that there is a shortage of medical offices in the City and that there isn't a lot of available space. He felt that the project would be good for the Old Newport area. He expressed his support for the project and noted that the Planning Commission approved the project by a vote of 6 -1. Motion by Council Member Rosansky to modify the decision of the Volume 56 - Page 780 City of Newport Beach Regular Meeting March 23, 2004 Planning Commission by limiting the project to 11,250 square feet, giving no credit for the two on- street parking spaces, and adding two conditions to the use permit, which include that all employees are required to park on site and that the curb, gutter and sidewalk improvements to Orange Avenue will be made. Substitute motion by Mayor Ridgeway to uphold the decision of the Planning Commission. Mayor Ridgeway stated that the Planning Commission does a good job, and that the applicant has met the requirements of the City and the Old Newport Specific Plan. He stated that the uphill grade into the residential area sets it apart from the commercial area. Council Member Webb asked how the approved square footage for the project would be handled if it is determined that the two on- street parking spaces aren't feasible. Mayor Ridgeway stated that he is relying on what has been provided in the staff report and noted that he has seen other parking spaces in front of catch basins in the city. The substitute motion carried by the following roll call vote: Ayes: Heffernan, Bromberg, Nichols, Mayor Ridgeway Noes: Rosanksy, Adams, Webb Abstain: None Absent: :None 25. VACATION AND ABANDONMENT OF A PORTION OF ORANGE AVENUE, LOCATED IN THE NEWPORT HEIGHTS AREA. Public Works Director Badum stated that the description and the map need to be modified slightly to accommodate larger curb returns. He explained that it was noticed earlier in the day that the way the vacation was laid out, it might preclude the larger curb returns that are required by the City's design standards. Mayor Ridgeway asked if the applicant was advised of the modifications. Public Works Director Badum stated that it will not affect the project; it will only change a couple of bearings and the curb radius. Mayor Ridgeway opened the public hearing. Hearing no testimony, Mayor Ridgeway closed the public hearing. Mayor Ridgeway asked how the modifications should be expressed in the motion. Public Works Director Badum stated that the current plan shows a 15 -foot radius curb return at Clay Street and Orange Avenue, and a 25 -foot return at Orange Avenue and Old :Newport Boulevard. He stated that staff desires to have concentric right -of -way so that the sidewalk width can be preserved. He stated that the radius should be Volume 56 - Page 781 Q113 RI Vacation Orange Avenue (90/100 -2004) City of Newport Beach Regular Meeting March 23, 2004 INDEX changed to a 46- degree angle cut. Motion by Mayor Ridgeway to a) adopt Resolution No. 2004 -27 ordering the vacation and abandonment of a portion of Orange Avenue, with the changes articulated by the Public Works Director; and b) direct the City Clerk to have the resolution recorded by the Orange County Recorder. Council Member Webb stated that the vacation will allow a commercial building setback to go to zero on Orange Avenue. Mayor Ridgeway stated that the setback for the project has already been established and approved. Council Member Webb stated that the residential parcel between the project and Clay Avenue has not been approved. He suggested that a building setback of at least ten feet be established for the parcel. He explained that this will disallow a building to be built into the area that is being vacated. Mayor Ridgeway confirmed with the City Attorney that this change could not be made at the current meeting since it was not agendized. Council Member Webb asked if it would be possible to delay the recordation of the vacation until the zoning could be reviewed. City Attorney Burnham stated that the City Council can condition the resolution of vacation to be effective upon the happening of a subsequent event. In response to Council Member Heffernan's question, City Attorney Burnham stated that the right-of -way becomes available when the resolution is recorded, but he didn't know what affect this would have on the developer. Council Member Webb stated that there are two parcels involved and suggested that the vacations be recorded separately. City Attorney Burnham confirmed that Council Member Webb wants the resolution on the residential parcel to be contingent on the approval of a setback change. Council Member Heffernan confirmed with the City Attorney that the vacation on the street in front of the proposed project will occur now and the vacation on the residential parcel will occur later. Amended motion by Mayor Ridgeway to a) adopt Resolution No. 2004 -27 ordering the vacation and abandonment of a portion of Orange Avenue, with the changes articulated by the Public Works Director; and b) direct the City Clerk to have the revised resolution recorded by the Orange County Recorder. The amended motion carried by the following roll call vote: Volume 56 - Page 782 City of Newport Beach Regular Meeting March 23, 2004 INDEX Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None K. PUBLIC COMMENTS Robert Walchli corrected a typo made in his editorial in the March 23,. 2004, edition of the Daily Pilot by stating that he was expressing his concern about the number of beach bars on the peninsula. Additionally, Mr. Walchli noted the doubling of the parking rates at State parks and stated that it will force more people and traffic onto the streets in Corona del Mar. He asked the City to protect the quality of life of the residents and provide Corona del Mar with substantial traffic relief during the summer. Mr. Walchh stated that better enforcement of the 10:00 p.m. beach closure is also needed. Lastly, Mr. Walchli asked when the public parking on Coast Highway by the Balboa Bay Club would be reestablished. David Pillman, Pillman Architects and Go Access, stated that the purpose of Go Access is to remove architectural and communication access barriers for the disabled. He stated that he wants to create a foundation that will allow him to be an Americans with Disabilities Act (ADA) ombudsman, and someone who will be recognized in the field and whose opinion will mean something. He stated that he has ways to get money into the community so that the City can do the work it wants to do. Mr. Pillman asked for the City's help during the tough times he is having. He provided information on Pillman Architects. Jim Hildreth stated that he still has time to file his lawsuit and will present it to the City Clerk's office tomorrow. He stated that the information about him on the City's website is incorrect. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Status report — Ad Hoc General Plan Update Committee (GPUC). Mayor Pro Tem Adams reported that GPUC and the General Plan Advisory Committee (GPAC) met on March 22, 2004. Assistant City Manager Wood stated that both committees reviewed the technical background report for the general plan update. Additionally, GPAC discussed the planning issues for the update. The item will be agendized for the City Council meeting on April 13, 2004, as a joint meeting with the Planning Commission. Status report — Local Coastal Program (LCP) Certification Committee. Mayor Ridgeway stated that he was happy to report that many comments are being received about the local coastal plan. The Planning Commission will have the item agendized again at their meeting on April 22, 2004. Planning Director Temple stated that the Planning Commission has requested that, if possible, written comments be submitted to the City by April 14�h, so that staff can respond and include the information in their staff report. Volume 56 - Page 783 City of Newport Beach Regular Meeting March 23, 2004 Status report - Newport Coast Advisory Cormnittee (NCAC). Council Member Heffernan reported that the NCAC will hold its next meeting on April 5, 2004, to discuss the details of the siting and layout for the Newport Coast Community Center. Status report - Telecommunications Committee. Council Member Heffernan reported that the committee has met and discussed the complicated right -of -way ordinance. Their next meeting will be held on April 19, 2004. Status report - Mariners Joint Use Library Ad Hoc Steering Committee. Council Member Webb announced that the committee's next meeting will be held on April 14, 2004, at 3:30 p.m. to discuss final cost estimates and prepare to go out to bid. He stated that a groundbreaking ceremony is being planned for June 2004. Status report - City Centennial 2006 Committee. Council Member Webb announced that seven community members are being sought to serve on the committee. He stated that anyone that is interested should submit an application to the City Clerk's office by April 1, 2004. Status report - Aviation Committee. Council Member Bromberg stated that the committee doesn't have any new issues to report on, but should have something within the next sixty days. Status report - San Joaquin Hills Transportation Corridor Joint Powers Agency Board of Directors. Mayor Pro Tern Adams reported that the San Joaquin Hills corridor is not meeting its projections in tolls and retirement of debt, and is forecasted to go into technical default in a couple of years. In an attempt to address the situation, the San Joaquin Hills board and the Foothill Eastern board formed a provisional agency, the Transportation Corridor Systems, to investigate consolidating the two agencies. Both boards have voted to proceed with the consolidation. A final vote will be taken by the Transportation Corridor Systems board on April 8, 2004. Mayor Pro Tern Adams stated that it's important that the consolidation be approved. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 26. PLANNING COMMISSION AGENDA FOR MARCH 18, 2004. Planning Director Temple stated that the first item on the Planning Commission agenda was the consideration of an amendment to the use permit for Zinc Cafe. She stated that the applicant requested two changes to their use permit, which included the sale and service of beer and wine, and the extension of their food service hours from 6:00 p.m. to 10:00 P.M. Planning Director Temple stated that the Planning Commission based their original approval of the use permit on the limited hours of operation and did not feel that 10:00 p.m. was appropriate given the limited availability of public parking in the area. They did, however, approve an extension of the hours to 8:30 p.m. The second item on the agenda was a review of the local coastal plan, which will be continued at the Planning Commission meeting on April 22, 2004. She stated that there was extensive public testimony. Volume 56 - Page 784 INDEX (100 -2004) City of Newport Beach Regular Meeting March 23, 2004 Per Council Member Heffernan's question, Planning Director Temple stated that the two dissenting votes on the Planning Commission for the Zinc Cafe item were Commissioners Toerge and McDaniel. Council Member Nichols requested that the Zinc Cafe item be called up for review. Additionally, he stated that he wants to call up some items from the Modifications Committee meeting. City Attorney Burnham stated that the matter is not agendized for the current meeting, but that Modifications Committee call -ups can be done directly by a council member with the Planning Director anyway. N. CONTINUED BUSINESS 27. AMENDMENTS TO THE NEWPORT BEACH MUNICIPAL CODE REQUIRING USE OF FRANCHISED SOLID WASTE HAULERS FOR DEMOLITION ACTIVITIES. Motion by Council Member Webb to adopt Ordinance No. 2004 -2 amending Section 15.02.035 of the Newport Beach Municipal Code pertaining to the Uniform Administrative Code to clarify procedures and requirements or handling solid waste from demolition activities. Jim Hildreth stated that he was not allowed to speak on this item at a previous City Council meeting. He stated that if Shellmaker is worried about recycling, they should check with the Edison Company, since they must also do similar disposals during utility undergrounding projects. Mr. Hildreth stated that Shellmaker provides a benefit to the City and possibly there could be a joint venture on waste disposal. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None 28. MEASURE S GUIDELINES PROPOSED AMENDMENTS. City Attorney Burnham stated that it's been approximately three years since the Measure S guidelines were adopted and that, since that time, there has been some experience in applying the guidelines to real projects. He stated that six topics are currently being recommended for amendment, with the first being a minor modification in the language that empowers the City Council to deviate from a strict application of the guidelines when necessary to stay consistent with the purpose of Measure S. City Attorney Burnham stated that it is recommended that the word "deviation" be changed to "departure ". In response to Mayor Pro Tem Adams' question, City Attorney Burnham clarified that he is recommending that the City Council adopt Exhibit A -1 Volume 56 - Page 785 INDEX Franchised Solid Waste Haulers for Demolition Activities (42/100 -2004) (100 -2004) City of Newport Beach Regular Meeting March 23, 2004 INDEX in the staff report to make this change. City Attorney Burnham stated that Exhibit B eliminates extraneous language in the definition of the term "allowed uses ". Exhibit C outlines a proposal to define the word "approval ". He explained that it clarifies what it means under Measure S for the City Council to approve an amendment that requires voter approval. City Attorney Burnham stated that he feels that the City Council's decision to approve an amendment only moves the amendment along to the voters and, additionally, that the City Council has the option of either approving the amendment or approving it for the purpose of submitting it to the voters. He noted that in Webb Exhibit C, language is added to insure that appropriate action is taken to comply with the California Environmental Quality Act (CEQA). Webb Exhibit C also includes language that confirms that the City Council retains the authority to disapprove an amendment, which would not require that it move to the voters. Council Member Heffernan read from the text of Measure S and stated that the recommended definition of the word "approval" differs from the what is required by the measure. City Attorney Burnham agreed that having the City Council approve an amendment after the voters have approved it is cumbersome, but it was a request made by Council Member Webb and he feels that it conforms with the intent, and is consistent with the text, of Measure S. Council Member Heffernan stated that he feels that the amendment should be fully addressed and voted on prior to it going to the voters. City Attorney Burnham explained that there wouldn't be any change in the procedure leading up to the actual motion made by the City Council. It would remain the same whether the amendment requires voter approval or not. The only difference is the actual motion that is made after, or in conjunction with, the certification of the environmental document. After a brief discussion, Mayor Ridgeway clarified that staffs Exhibit C is more consistent with the intent of Measure S. City Attorney Burnham agreed, but added that the language regarding CEQA and the City Council retaining the authority to deny an amendment should also be included. He noted that this is also consistent with requests made by the Greenlight Steering Committee. Council Member Rosansky agreed that staffs Exhibit C would be more appropriate, but suggested that the second sentence be removed. He explained that this is unnecessary language. Council Member Webb stated that with Webb Exhibit C, he was attempting to address situations when the City Council might want the voters to approve an amendment prior to it being approved by the City Council. He explained that all of the information necessary to make a decision on an amendment would still be discussed prior to it going to the voters. The vote by the City Council after an approval by the voters would be automatic after the vote is certified. Mayor Ridgeway stated that it would be too confusing. City Attorney Volume 56 - Page 7S6 City of Newport Beach Regular Meeting March 23, 2004 INDEX Burnham felt that Council Member Webb was trying to address the concept that the City Council's approval of an amendment is only approving it to go to the voters anyway and there might be situations when the City Council would prefer not to vote on the amendment prior to it going to the voters. He agreed that it does potentially present some practical and legal problems. City Manager Bludau stated that an example of when an amendment might go to the voters first might be one where the City Council is fairly evenly divided on their opinion of an amendment and the decision is made to let the voters decide. Council Member Bromberg stated that staffs Exhibit C is consistent with the intent of Measure S, and felt that the second sentence should remain. He added that he'd have no problem with the third sentence being removed. He explained that the guidelines need to be clear for future staff and council members. City Attorney Burnham reminded the council members that six affirmative votes are required to amend the Measure S guidelines. City Attorney Burnham stated that staff is recommending the changes outlined in Rosansky Exhibit D, and explained that this deletes unnecessary text from the non - residential use category. Staff is also recommending Rosansky Exhibit E, which more clearly states that non- residential entitlements would be stated in both terms of floor area and the appropriate unit of measurement used in the Institute of Transportation Engineers (ITE) manual to determine peak hour trips. Mayor Pro Tem Adams asked why the ITE manual is being referred to and not the trip table that's in the document. He explained that it's confusing to refer to a primary unit of measurement in the ITE manual, when it hasn't been clearly defined. He stated that the table takes out the decision making for what independent variable is used. Mayor Pro Tem Adams further suggested that with all of the changes to the proposed guidelines being discussed at the current meeting, it might be advantageous to have a clean version of the guidelines presented to the City Council at a future meeting for adoption. He stated that this would allow time.to understand the long -term impacts of the changes being proposed. Council Member Webb asked how a hotel would be analyzed when both extra square footage and number of rooms are being considered for trip generation. City Attorney Burnham stated that the amendment would have to be phrased in terms of the additional floor area being proposed and the unit of measurement from the trip table. He stated that it creates a problem because the general plan doesn't have square -foot entitlements for hotels. Mayor Pro Tem Adams stated that if his suggestion to present the revised guidelines to the City Council for action at a future meeting is approved, he would also like a couple scenarios included in the report that would show how the guidelines would actually be implemented. Council Member Heffernan suggested that it include clear mathematical Volume 56 - Page 787 City of Newport Beach Regular Meeting March 23, 2004 INDEX examples to show how they would or wouldn't apply. Mayor Ridgeway agreed that some type of analysis would be important, but the traffic analysis is what matters. Mayor Pro Tem Adams stated that the current general plan provides entitlement in terms of rooms, and that he still can't understand how a decision can be based on square footage. He explained that it seems artificial and asked if the guidelines would need to include an assignment of square footage per room. City Attorney Burnham agreed that it is currently missing. City Attorney Burnham stated that the second part of Exhibit E attempts to confirm that an amendment that requires voter approval will be treated the same as one that does not require voter approval, in terms of the analysis, the evaluation and the consideration. Exhibit F attempts to streamline some procedures and to have all of the information that the City Council and the Planning Commission need to determine whether an amendment requires voter approval is in the staff reports when the action is taken on the amendment. Phil Arst, spokesperson for Greenlight. provided a handout, and stated that he supports the suggestions made by Council Member Rosansky and agrees with the comments made by Council Member Heffernan regarding the approval process. He explained that the City Charter states that matters are to be submitted to the voters only after approval by the City Council. He stated that this is the foundation of the intent of Measure S and requires the City Council to thoroughly review a project prior to submitting it to the voters. Mayor Ridgeway clarified that the City Council is only submitting the amendment to the voters, not the project. Mr. Arst stated that the voters still need all of the information about the project in order to cast their vote. Mayor Pro Tem Adams asked if both of the tables in the handout from Mr. Arst are to be used. Mr. Arst stated that only the first table needs to be looked at, unless the suggestions made by Council Member Rosansky aren't considered. In addition to the disagreement over the definition of the approval process, he also stated that Greenlight disagrees with the definition of "entitlement ", since it can be construed to mean that entitlements can be based on hotel rooms. He explained that Measure S is only triggering a vote of the people, and does not reject a project. Mayor Pro Tem Adams stated that Measure S could, in effect, reject a project because a project might never be brought to the City. He further noted that the general plan does not provide a square footage per hotel room measure. Mr. Arst stated that in the majority of cases, estimated square footage of existing hotels is included in the general plan. Mayor Ridgeway noted the project at the Dunes Resort that was proposed a couple of years ago and stated that it was an anomaly. He explained Volume 56 - Page 788 City of Newport Beach Regular Meeting March 23, 2004 110111W that it had an underlying development agreement that allowed the proposed project without it going to the voters. Mayor Ridgeway stated that Mr. Arst is attempting to address that anomaly with his suggestions. Mr. Arst stated that he feels that it could happen again and is a problem. Council Member Bromberg confirmed with Mr. Arst that he prefers to use square footage as a measure for hotels because traffic might be generated by other means than just hotel rooms, such as a convention center. He asked Mr. Arst if he would support a change to the guidelines to address this, by not using the square footage measure if there isn't any other means for bringing people in. Mr. Arst stated that neither he or the City Council has the authority to depart from the law and the law states that intensity shall be considered. Council Member Bromberg stated that laws are subject to interpretation and the Measure S guidelines are the method being used to provide that interpretation. Mayor Pro Tem Adams stated that there appears to be consensus on Rosansky Exhibit E and that the scenarios that will be provided when the guidelines come back to the City Council for adoption will be helpful. Mr. Arst stated that Greenlight agrees with Council Member Rosansky's interpretation of floor area, but that it is based on changing the definition of entitlement. Additionally, he referred to John Buttolph's letter of March 22, 2004, and stated that it has the wording for the approval process that Greenlight would agree with. Mr. Arst stated that Mr. Buttolph is an attorney and his wording is in strict conformance with the City Charter. City Attorney Burnham stated the text in the general plan doesn't provide a strict floor area limit and asked how the trigger can be calculated. Mr. Arst stated that the general plan does have a consistent methodology of estimating hotel rooms at 1,000 square feet per room. Mayor Pro Tem Adams stated that it might be unfair to some hotels, such as luxury hotels which might have more square footage per hotel room without creating any detrimental impacts. He felt that there needs to be equity in the way the trigger for a vote is applied, and that it should be fair and well defined. City Attorney Burnham agreed that there needs to be a factual basis for making the determination that the amendment proposes an increase of more than 40,000 square feet. The statistical tables in the general plan only provide an estimate. Mr. Arst stated that the wording in the measure is clear. Mayor Pro Tem Adams clarified that the issue is not about the use of intensity for hotels, it's about how to handle hotels that don't have square footage identified. Mayor Ridgeway suggested that City Attorney Burnham and Mr. Buttolph discuss the issue. Council Member Nichols stated that the actual square footage for the rooms could be used. Mayor Pro Tem Adams clarified that it's an entitlement issue, and that an existing hotel might not be using its full entitlement. Even applying the actual room to square foot ratio might not be reasonable. City Volume 56 - Page 789 City of Newport Beach Regular Meeting March 23, 2004 Attorney Burnham added that in some instances, it has been found that a larger hotel room has less usage, a lower occupancy rate and a lower peak hour trip rate. Mr. Arst suggested that when a hotel's square footage can't be calculated from the table, an actual measurement could be taken. Mayor Pro Tom Adams stated that the point is that what they've built doesn't necessarily have anything to do with what they're entitled to build. City Attorney Burnham stated that he will work on the issue when preparing the revised guidelines. Mayor Ridgeway thanked Mr. Arst for his comments. Mr. Arst stated that progress has been made and he looks forward to continuing to work with the City. He noted, however, that time is of the essence. Jim Hildreth stated that it might behoove hotels not to have the change adopted, since the City is charging per square footage. He felt that the clarifications to the guidelines are actually becoming a change to the ordinance. He stated that the general public would like to vote on this matter and all matters that have to do with density. He also felt that the City should determine how it will inform the voters as to what is going on. He stated that when people are close together and a hotel creates more density, it presents a problem. Motion by Mawr Pro Tern Adams to continue the item to April 27, 2004. Mavor Pro Tem Adams suggested that the revised guidelines be provided to the City Council and Greenlight as soon as possible, so that a thorough review can take place prior to the meeting. Mayor Ridgeway offered the availability of the council members to Mr. Arst to assist in moving the matter forward. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None Mayor Ridgeway recessed the meeting at 10:00 p.m. and reconvened the meeting at 10:10 p.m. with all council members present. O. jCjURRENT BUSINESS 29. RELINQUISHMENT OF COAST HIGHWAY IN CORONA DEL MAR. Public Works Director Badum stated that the staff report provides the history on the matter. He noted that one of the key issues is that Coast Highway serves as a "main street" for the various villages throughout the city. He reported that the City has been frustrated with its ability to Volume 56 - Page 790 INDEX 1 (100 -2004) City of Newport Beach Regular Meeting March 23, 2004 INDEX work with CalTrans to get projects and events approved, due to CalTrans' strict standards and guidelines. He stated that another issue has been the lack of the State's responsiveness to the citizens. CalTrans' priority is to provide regional transportation. Coast Highway is a regional facility and CalTrans has less of a concern for local issues. Public Works Director Badum reported that another issue is the synchronization of the traffic signals on Coast Highway. He stated that the City and CalTrans have negotiated an amount of $3.5 million that the State is willing to pay for the City to take over Coast Highway through Corona del Mar. The primary component of the fee will be the paving projects that are needed and will be needed. Public Works Director Badum stated that the City Council needs to consider the long -term maintenance issues, which staff has estimated will cost approximately $600,000 per year. He stated that the cost is an average over a fifteen -year period. Public Works Director Badum stated that another issue is the liability, which is estimated to be approximately $100,000 per year. He noted that this is only an estimate and that it is hard to predict liability. Mayor Ridgeway asked if CalTrans would still control the traffic signals if the relinquishment occurs. Public Works Director Badum responded in the negative, but explained that the State Transportation Commission would require that nothing is done to affect regional traffic flow. Mayor Pro Tem Adams asked which of the Vision 2004 streetscape improvements could still be done if the relinquishment does not occur. Public Works Director Badum stated that some of the improvement projects could still be done, but that the magnitude or degree might be affected. For example, be stated that the State requires a different lane width based on their highway standards, which would affect the plans for the medians. He stated that all of the improvements could most likely still be done, but that they may have to be changed because of the CalTrans standards. Mayor Pro Tem Adams stated that the answer to the question is important because if most of Vision 2004 improvements could still be done under CalTrans' jurisdiction, the question is why would the City take over the long -term maintenance and liability of Coast Highway. City Manager Bludau referred to Exhibit E in the staff report, the Vision 2004 proposed budget worksheet, and stated that it appears that most of the projects could still be done. Council Member Webb confirmed with the City Manager that the pavement treatments to the streets and sidewalks are a part of the Vision 2004 plan, and asked if CalTrans would approve such projects. Public Works Director Badum stated that CalTrans would be concerned for the textured treatments to the streets, but that they have approved such treatments in other locations. Council Member Webb stated that whether CalTrans has control over Coast Highway or not, the City would still have to maintain the improvements. Mayor Pro Tem Adams stated that he supports the Vision 2004 plan and voted in favor of the City going into negotiations with CalTrans. He stated, however, that possibly as much time should have been spent with CalTrans on the implementation of the Vision 2004 plan as was spent on Volume 56 - Page 791 City of Newport Beach Regular Meeting March 23, 2004 INDEX the maintenance and liability issues. He stated that the plan might still be able to occur without the relinquishment occurring, and expressed his frustration and concern for the money that the State has already taken from the City. Regarding the liability issue, Council Member Bromberg stated that he's not sure if it's such a major concern. He explained that Coast Highway doesn't seem to be problematic and that CalTrans hasn't experienced major liability issues for defective design in the area. He further noted that the City fights claims everyday. Council Member Nichols stated that it is estimated to cost $3.5 million to bring Coast Highway to a "state of good repair ", which is normally done by CalTrans prior to a relinquishment. He stated that the $3.5 million that the City receives should be put into a fund, and explained that the estimated annual maintenance cost of $620,000 is an average cost over a period of time. He stated that the estimated cost of $100,000 for liability was too low, but is also a real cost. In summary, the cost to the City, over a fifteen -year period would total between $10 and $12 million, He felt that this is the amount that should have been received by the State. Additionally, Council Member Nichols stated that the Vision 2004 plan is expected to cost approximately $12 million. He asked where this money would come from and noted that $50,000 is the annual contribution from the Corona del Mar Business Improvement District (BID). Council Member Nichols also referred to the BID's budget estimates and stated that using their money; it would take 24 to 25 years to implement the plan. He didn't feel that they would see the increase in sales that would be needed, but that the $12 million could be available if the relinquishment did not take place. He stated that liability is another issue with regard to both the relinquishment and the improvements, and that it doesn't make sense for the City to take control of Coast Highway. He also noted that the zoning in the general plan for other areas in the City is somewhat dependent upon the traffic that flows through Corona del Mar. He further explained that the parking in the area is limited and a problem. Council Member Heffernan asked what staffs recommendation is. City Manager Bludau stated that staff is not making a recommendation because it is a policy decision that needs to be made by the City Council. He noted, however, that financially, it is not a good deal for the City, but that there are tradeoffs for the City Council to consider. Council Member Heffernan asked what staffs recommendation is for the funding of the Vision 2004 plan and what staffs opinion is on the issue of traffic flow through the area if the plan is implemented. City Manager Bludau stated that staff does not desire to impede traffic flow. Public Works Director Badum further explained that CalTrans would prefer wider lanes, but that he doesn't see anything in the Vision 2004 plan that would affect traffic flow. He even felt that it could be improved with a better coordination of the traffic signals. In response to the other question, City Manager Bludau stated that it will be up to the City Council to determine where the funding will come from when a review of the budget and Capital Improvement Program (CIP) is done. Council Member Heffernan Volume 56 - Page 792 City of Newport Beach Regular Meeting March 23, 2004 INDEX asked how the money from CalTrans would be spent. City Manager Bludau stated that his recommendation would be to set it aside for future road work in Corona del Mar. Mayor Pro Tern Adams asked if the annual maintenance costs for Coast Highway are being included in the budget. City Manager Bludau responded in the negative. Mayor Pro Tem Adams asked if the costs associated with the Vision 2004 plan are included. Public Works Director Badum stated that the median project and the remainder of the pedestrian improvement project are included in the current budget, and that they total approximately $500,000. Mayor Ridgeway referred to a document he received from the Risk Manager that reported that CalTrans lost a case the week prior for $5.7 million. It was ruled that the jury could decide to issue design immunity. He expressed his concern for the liability, as well as the maintenance that the City would be taking on, in perpetuity. Risk Manager Farley stated that the City's insurance coverage protects the City for operations, and that design immunity is within the City's operations. The City can currently make a motion for design immunity for any claim alleging design negligence, which would make the City immune from the levying of a settlement. She stated that the recent case could result in the City losing that protection. In response to Council Member Rosansky's question, Risk Manager Farley stated that the City's self insured retention limit is $500,000. Council Member Rosansky confirmed that this means that the City would pay the first $500,000 per occurrence and would be covered above that point. Risk Manager Farley added that the City's current coverage is for up to $26 million. Mayor Ridgeway pointed out that the City paid a settlement several years ago for $28 million for a bicycle accident on Superior Avenue. Council Member Bromberg stated that such settlements are rare, and noted that Coast Highway is a flat road and in good shape. Additionally, he stated that the first five years of the maintenance for Coast Highway in Corona del Mar could come out of the $3.5 million that will be received from CalTrans. Council Member Webb asked how much CalTrans spends annually for maintenance of that section of Coast Highway. Public Works Director Badum reported that CalTrans has stated that they spend $72,000 annually. Public Works Director Badum stated that, to him, this means that they're not doing it right and that they don't maintain the roadway in a manner consistent with how the City would do it. He noted that the City constantly receives complaints about the conditions of the roadway. Council Member Webb stated that he doesn't believe that the City would spend $600,000 annually in maintenance. He noted several projects on Coast Highway that have already been completed and CalTrans' budget constraints. He felt that, overall, the City could provide better service to the community. Volume 56 - Page 793 City of Newport Beach Regular Meeting March 23, 2004 INDEX In response to Council Member Rosansky's question, Public Works Director Badum stated that the $620,000 maintenance estimate would be for new expenditures. He noted that the City is currently maintaining the median landscaping, but that sweeping and other minor maintenance items are billed to CalTrans. The median landscaping maintenance would be in addition to the $620,000 estimate. Council Member Rosansky asked if the City would be liable, from a design standpoint, if the improvements were done and the relinquishment did not occur. Public Works Director Badum stated that the City would most likely have to assume some of the liability. City Attorney Burnham explained that the City would be liable pursuant to an encroachment permit or a contract authorizing the improvements. Mayor Pro Tem Adams stated that if a consultant is hired to do the design, the consultant would indemnify the City. City Attorney Burnham agreed and stated that the City would also be entitled to design immunity, irrespective of whether they conformed to CalTrans standards. The City, not CalTrans, would assume whatever liability resulted from the improvements. Debra Allen displayed a drawing of the Corona del Mar Vision 2004 Plan and emphasized that the plan was supported by the BID, the Corona del Mar Chamber of Commerce and the Corona del Mar Residents Association. She stated that taking over Coast Highway is a key element to the plan. She explained that CalTrans is only interested in moving traffic and will not approve the improvements. In regard to the case mentioned earlier, Ms. Allen stated that the court's decision did not eliminate design immunity. In regard to liability, Ms. Allen stated that the number of accidents that CalTrans has had to pay on is negligible. Further, she felt that the improvements will slow traffic, which should result in even fewer accidents. Mayor Ridgeway referred to the accident and claim history for fiscal years 1998/99 to 2000/01 for Corona del Mar, and stated that 327 accidents, 111 injuries and one fatality is not negligible. John Blom, BID Board Chairman, stated that people are afraid to cross Coast Highway in Corona del Mar. He noted that CalTrans removed two crosswalks when they did work in the roadway approximately five to six years ago, which shows that they don't want people to cross the street. He stated that Coast Highway divides that part of the city in half and prevents Corona del Mar from becoming a "village ". Additionally, he stated that increased safety means less liability, and that the Vision 2004 improvements will make the area safer. He stated that if the $3.5 million that is received from CalTrans is used wisely, it will maintain and keep the highway in good repair for ten years. Mr. Blom stated that revenue to the City will also increase because sales tax revenues and property values will increase. In closing, Mr. Blom stated that this is a unique opportunity for the City to control its own destiny and improve the quality of life in the community. Volume 56 - Page 794 City of Newport Beach Regular Meeting March 23, 2004 INDEX Laura Dietz stated that when she ran for City Council, she strongly supported the BID and increased safety measures. She stated that pedestrians are scared to cross Coast Highway in Corona del Mar. She expressed her support and the support of others for local control of Coast Highway from Jamboree Road to Newport Coast Drive. Ed Selich, BID advisor, responded to Mayor Pro Tem Adams' earlier question about what improvements could be done if the relinquishment did not occur, by stating that the quality and intensity of the improvements could not be done if Coast Highway were under CalTrans control. Mr. Selich complimented City staff for their efforts with the negotiations and realized that the $3.5 million will need to be used for maintenance and upkeep of the highway. He stated that the BID will look for other funding sources for the plan improvements, but that it needs to know if the plan can be implemented in the manner it was designed, which would only occur under local control. Bob Calkins stated that traffic flow will be slowed down if the Vision 2004 plan is implemented, but that the agreement with CalTrans requires the City to insure the continuity of traffic flow. Mr. Calkins stated that he couldn't understand how both could be done. In regard to liability, he stated that the improvements will increase liability due to the increased activities that will take place. Lastly, Mr. Calkins stated that if the City takes over Coast Highway, it will be forever and urged the City Council to consider the issue thoroughly before making a decision. Tina Hoover stated that the City needs to take responsibility and implement a plan that will improve safety. She stated that Corona del Mar is growing, and disagreed with those that cited liability and cost as reasons for not taking over Coast Highway. Ms. Hoover expressed her support of the relinquishment and felt that it could work. Mayor Ridgeway asked Ms. Hoover where the growth in Corona del Mar has been. Ms. Hoover stated that she is speaking of residential growth. Charles Masters expressed his support for the City taking control of Coast Highway. He felt that CalTrans ignores quality of life in Corona del Mar. Gary Naumann stated that if Coast Highway is Corona del Mar's "main street ", it should be treated like a neighborhood. He stated that the City should take advantage of this opportunity to take back control. He stated that traffic needs to be slowed down and the neighborhood taken back. Chip Stasel stated that some of those in attendance at the current meeting can remember when Coast Highway was a dirt road. He stated that it has gotten where it's at because people have been progressive and open minded and taken risks. Mr. Stasel stated that Corona del Mar celebrates its 100 year anniversary this year. He urged the City Council to support the revitalization of Corona del Mar. Bernie Svalstad stated that Corona del Mar is the eastern entrance to Volume 56 - Page 795 City of Newport Beach Regular Meeting March 23, 2004 INDEX Newport Beach and there has been an attempt to get CalTrans to approve the Vision 2004 median plan for two years. Mr. Svalstad stated that the medians are going in exactly where the striped medians currently exist, and CalTrans still won't approve them. Secondly, he stated that the district's council representative should support what the residents and businesses in the area are asking for. B. J. Johnson, Chairman of the Residents Association, stated that there is nothing to divert traffic from entering Corona del Mar and suggested that a few signs be installed to divert traffic down Newport Coast Drive. Secondly, Ms. Johnson noted that the City did take over the control of MacArthur Boulevard. She asked the City Council to support the relinquishment of Coast Highway in Corona del Mar. Luvena Hayton stated that she has been a part of the community's efforts to get CalTrans to work with them and is convinced that CalTrans will not help Corona del Mar. Ms. Hayton stated that the City owes it to Corona del Mar to support the relinquishment. Jim Hildreth stated that safety should be a primary concern. He stated that the City needs to acknowledge that it's difficult to cross Coast Highway and do what it can to make it as safe as possible. In regard to parking, Mr. Hildreth stated that parking will be lost with the addition of the trees that he's seen in the plans, and he questioned if the proposed parking structures would benefit Corona del Mar. In closing, he hoped that the plan could be implemented with both aesthetics and safety taken into consideration. `Fade Roberts stated that the main issue is quality of life and improvements have been made in other parts of the City to improve the quality of life in those areas. He also noted that the Vision 2004 plan isn't just for the businesses; it's also for the residents. He encouraged the City Council to support the relinquishment. Council Member Bromberg referred to the accident and claim history that was presented earlier, and confirmed with the Risk Manager that the City did not pay out any money for claims in the area of the relinquishment during the time period given. He hoped that this would dispel the liability concerns that some people are having. Council Member Bromberg acknowledged those who spoke at the current meeting and stated that the relinquishment of Coast Highway allows the City to have a say and control of an area that is within its sphere. Council Member Bromberg stated that the relinquishment issue is not just about money, its about community. CalTrans does not consider Corona del Mar a community and has been nonresponsive to previous requests. He stated that the Vision 2004 plan is critical to the formation of a true village atmosphere in Corona del Mar. In regard to the estimated annual maintenance costs of $600,000 to $700,000, he didn't feel that it would cost the City that much. He agreed that the $3.5 million fund should be for maintenance issues and potential liability. Council Member Bromberg stated that Corona del Mar is made up of 12,000 people; it's a thoroughfare and a destination. He didn't feel that the City should turn Volume 56 - Page 796 City of Newport Beach Regular Meeting March 23, 3004 INDEX its back on Corona del Mar. He noted that the City has not had a problem with taking control over MacArthur Boulevard, and felt that the City would make Coast Highway a better place and a safer place. Mayor Pro Tern Adams asked if the $3.5 million could be put into a separate fund that couldn't be commingled with the general fund. City Attorney Burnham stated that it could be done, but that he wasn't sure if future City Councils would be bound to maintaining the fund. Council Member Webb stated that similar situations already exist within the City's budget. He noted the reserve funds that have been established for water and sewer projects. He thought the same could be done for construction projects on Coast Highway. Motion by Council Member Brombere to accept the State's offer of $3,511,000 "State of Good Repair" estimate and direct staff to negotiate a Cooperative Agreement with the State to relinquish Coast Highway between Newport Coast Drive and Jamboree Road; and directed staff to set up a separate fund for the $3,511,000 that would be used solely for the maintenance and refurbishment of Coast Highway. Council Member Bromberg acknowledged that the separate fund may not be binding on future City Councils, but it would send a message as to the intent of the current City Council. Mayor Pro Tern Adams stated he still has a concern for the maintenance that has been deferred over the years and the facilities that need major investments. He stated that the relinquishment will only increase the inventory of facilities that the City will be responsible for over time. He stated that establishing the separate fund will help, but asked if there was a way to protect it. City Manager Bludau suggested that a Council policy could be adopted. Council Member Nichols stated that it is difficult for him to oppose a project that will beautify the City. He felt that the problem of Coast Highway becoming a thoroughfare through Corona del Mar is the result of decisions on roads in the past that could have provided alternate routes, and that an alternative doesn't currently exist. Council Member Nichols stated that he is responsible to the entire City when making decisions, and not just to a small group. Mayor Ridgeway stated that he will reluctantly support the relinquishment and that it is not an easy decision. He stated that if he was really looking at the greater City and the potential liability, he didn't know if he could support it. He also didn't feel that traffic would improve, but he did feel that the medians and the improvements that are being done are gorgeous. He agreed with the suggestion by Ms. Johnson to add signage. Mayor Pro Tern Adams agrees that CalTrans is nonresponsive to the Corona del Mar community. Volume 56 - Page 797 City of Newport Beach Regular Meeting March 23, 2004 The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Mayor Ridgeway Noes: Nichols Abstain: None Absent: None 30. SPECIAL EVENT PERMIT PROCESS REVISIONS. Motion by Council Member Bromberg to 1) introduce Ordinance No. 2004 -4 adding Chapter 11.03 of Title 11, deleting Chapter 5.10 from the NBMC pertaining to special events; and amending Exhibit A to Section 3.36.030 of Chapter 3.36, Cost Recovery for User Services; and 2) pass to second reading on April 13, 2004. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None P. ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF MARCH 9, 2004. Jim Hildreth stated that the City Council has violated the order in which it said it would do this and that it's being done for his benefit, so he is going to sue. He referred to page 752 of the regular meeting minutes and stated that not all of his comments were included. Additionally, he stated that his comments regarding the moorings in the Grand Canal were incorrectly recorded. He stated that there is no guarantee that the City's minutes are correct. Referring to the regular meeting minutes, Council Member Rosansky stated that he did not abstain on Item No. 20. Motion by Council Member Webb to waive reading of subject minutes, approve as amended by Council Member Rosansky and order filed. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None INDEX (100 -2004) 6. BACK BAY SCIENCE CENTER — AUTHORIZATION TO � C- 3481(F) Volume 56 - Page 798 City of Newport Beach Regular Meeting March 23, 2004 ADVERTISE FOR CONSTRUCTION BIDS. Council Member Nichols stated that he thought that part of the funding could also be used elsewhere. City Attorney Burnham clarified that the American Trader oil spill funds that were dedicated to the project have been spent on the design to date and the only funds that the City is planning to commit have been earmarked for the Upper Newport Bay and total approximately $311,000. Motion by Council Member Brombere to 1) authorize advertisement for construction bids; and 2) approve Amendment No. 1 to Professional Services Agreement with Gail P. Pickart, P.E., for project management services for Back Bay Science Center. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None 7. APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH WRC CONSULTING SERVICES FOR PREPARATION OF A PRELIMINARY PLAN FOR BUCK GULLY STABILIZATION AND RESTORATION. Council Member Nichols stated that he's pleased that the Buck Gully issue is before the City Council. Motion by Council Member Nichols to approve a Professional Services Agreement with WRC Consulting Services, Inc. (WRC) of Anaheim for preparing a preliminary plan for Buck Gully stabilization, restoration and constructed wetlands at a negotiated fee of $85,664 and authorize the Mayor and the City Clerk to execute the Agreement. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None 21. DEPARTMENT OF CONSERVATION GRANT FUNDING REQUEST. Council Member Nichols stated that he wanted to acknowledge the General Services Director and stated that it seems to be a quality program. Motion by Council Member Nichols to authorize the General Services Volume 56 - Page 799 INDEX Back Bay Science Center (38/100 -2004) C -3484 Buck Gully Stabilization and Restoration Plan (38/100 -2004) (100 -2004) City of Newport Beach Regular Meeting March 23, 2004 INDEX Director to submit a grant application to the California Department of Conservation Recycling Division in the amount of $22,197. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: None Q. MOTION FOR RECONSIDERATION — None R. ADJOURNMENT at 12:00 a.m. on March 24, 2004, in memory of Paul Ryckoff. The agenda for the Regular Meeting was posted on March 17, 2004, at 2:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on March 19, 2004, at 1:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary Mayor C; PL4_12t&4:1-1 City Clerk Volume 56 - Page 800 City of Newport Beach Regular Meeting March 23, 2004 INDEX LEFT BLANK INTENTIONALLY Volume 56 - Page 801