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HomeMy WebLinkAbout05/09/2006 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting May 9, 2006 — 7:00 p.m. STUDY SESSION - 4:00 p.m. CLOSED SESSION - 6:00 p.m. A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle Absent: Council Member Nichols Council Member Nichols joined the meeting at 7:05 p.m C. CLOSED SESSION REPORT City Attorney Clauson reported that the City Council approved a settlement in the amount of $125,000 in the Mullins vs. City of Newport Beach lawsuit, Orange County Superior Court Case No. 05CC07729. D. PLEDGE OF ALLEGIANCE - Council Member Selich E. INVOCATION - Reverend Dr. Dennis Short, Harbor Christian Church and President of Newport- Mesa - Irvine Interfaith Council F. PRESENTATIONS California Building Safety Week Proclamation. Mayor Webb presented a proclamation to Building Director Elbettar proclaiming the week of May 7 - 13, 2006, as California Building Safety Week. Relay for Life Proclamation. Mayor Webb presented a proclamation to Anna Lisa Biason and other representatives of the American Cancer Society proclaiming May 20 - 21, 2006, as Relay for Life Days. Ms. Biason stated that those interested in participating in this year's event can obtain information by calling (949) 887 -1065. Poppy Week Proclamation. Mayor Webb presented a proclamation to Miss Poppy, Rachel Heideman, and Esther Clark, a representative from the American Legion, proclaiming the week of May 14 - 21, 2006, as Poppy Week. Ms. Heideman read the poem entitled, "In Flanders Fields ". G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS_ OR MATTERS WHICH COUNCIL MEMBERS Volume 57 - Page 648 City of Newport Beach City Council Minutes May 9, 2006 WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON - DISCUSSION ITEM): Council Member Curry announced that permanent left turn arrows will be installed at Spyglass Hill Road and San Miguel Drive, which should help greatly in reducing the accidents at that intersection. He commended staff for their rapid response. Council Member Selich announced that a town hall meeting was held on Balboa Island on May 6th, with several department heads making presentations. He complimented staff on all of the work that was done for the meeting. Council Member Selich announced that the Balboa Island Art Walk will be held on May 21st on South Bayfront between Marine Avenue and the ferry crossing, starting at 10:00 a.m. He additionally announced that on June 4th at 11:00 a.m., the Balboa Island Parade will take place. Mayor Pro Tom Rosansky announced that Supervisor Jim Silva will speak at the West Newport Beach Association meeting on May 22nd at 7:00 p.m. in the Council Chambers. He invited everyone to attend. Mayor Pro Tem Rosansky announced that a fundraiser for Newport Heights Elementary School will be held on May 24th at Strawberry Farms Golf Course. More information can be obtained by calling (949) 631 -2612. Mayor Webb announced that there are 115 days until the City's 100th birthday; and he shared a "Centennial moment ". I. CONSENT CALENDAR NOTICE TO THE PUBLIC READING OF MINUTESIORD.INANCES AND RESOLUTIONS 1. 2. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF APRIL 25, 2006. Waive reading of subject minutes, approve as corrected by Council Member Curry and order filed. Council Member Curry requested that the vote on page 642 be corrected to reflect that he voted in favor of the motion for Item No. 27, instead of former Council Member Heffernan. READING OF ORDINANCES AND full of all ordinances and resolutions Clerk to read by title only. ORDINANCE FOR _INTRODUCTION RESOLUTIONS. Waive reading in under consideration, and direct City 3. CONTINUOUS UTILITY SERVICE AGREEMENTS. [100 -2006] Introduce Ordinance No. 2006 -13 amending Section 14.12.140 of the NBMC authorizing continuous service agreements for water and sewer customers. ORDINANCES FOR ADOPTION 4. AMENDMENT TO THE 1997 UNIFORM ADMINISTRATIVE CODE ESTABLISHING A JOINT BUILDING AND FIRE CODE APPEALS Volume 57 - Page 649 City of Newport Beach City Council Minutes May 9, 2006 BOARD. 1100 -20061 Adopt Ordinance No. 2006 -11 5. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADDING CHAPTER 1.35 TO THE NBMC LIMITING THE USE OF THE CITY S POWER OF EMINENT DOMAIN. 1100 -20061 Adopt Ordinance No. 2006 -12. CONTRACTS AND AGREEMENTS MARINERS LIBRARY LEFT TURN LANE - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3830). [381100 -20061 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. 8. MARINERS, CHINA COVE AND 62ND STREET WASTEWATER PUMP STATION REHABILITATION - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3585). [381100 -20061 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. CONTRACT WITH OMTS FOR ORGANIZATIONAL REVIEW OF THE UTILITIES DEPARTMENT (C- 3839). [381100 -20061 1) Authorize the City Manager to sign a professional services agreement with OMTS in an amount not to exceed $60,000 (includes base contract of $56,430 with a 5% contingency if authorized by the City Manager) to perform an organizational review of the Utilities Department; and 2) approve a budget amendment (06BA -066) in the amount of $60,000 (from water and wastewater enterprise system reserves to Utilities' professional and technical services account). 10. BIG CANYON CREEK RESTORATION PROJECT - PHASE II (C- 3593). [381100 -20061 Item continued to May 23, 2006. 11. SANTA ANA HEIGHTS EQUESTRIAN FACILITY - CONTRACT FOR PLANNING AND ENVIRONMENTAL SERVICES AND FUNDING AGREEMENT (C- 3840). [381100 -20061 1) Authorize the City Manager to execute an Agreement with Orange County or the Orange County Development Agency to allow the City to manage the construction of an equestrian facility in Santa Ana Heights; and 2) authorize the Mayor to sign a Professional Services Agreement with Keeton Kreitzer Consulting in an amount not to exceed $41,300 (includes a 5% contingency) to conduct environmental consulting services for the Santa Ana Heights equestrian facility. MISCELLANEOUS S20. PROPOSED COUNCIL POLICY K -6: PROCESSING OF SANTA ANA Volume 57 - Page 650 City of Newport Beach City Council Minutes May 9, 2006 HEIGHTS SPECIFIC AREA PLAN AMENDMENTS. [100 -20061 Adopt Council Policy K -6 relating to the processing of proposed amendments to the Santa Ana Heights Specific Area Plan. Motion by Mayor Pro Tern Ros_a_nsky_ to approve the Consent Calendar, except for the items removed (6, 12, 13 and 14); and noting the correction made to Item No. 1 and the continuance of Item No. 10. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols J. ITEMS REMOVED FROM THE CONSENT CALENDAR 6. RENEWED MEASURE M TRANSPORTATION INVESTMENT PLAN. [100- 20061 Council Member Curry stated that the Measure M renewal is critically important to Newport Beach, and explained that it will increase the available funds for local streets and roads, and will also provide money for water quality improvements and circulation services. Sandra Genis stated that the draft Transportation Investment Plan only describes the draft of Measure M and is not the Measure itself. She requested that the City Council not approve the proposed resolution or, at a minimum, defer action until the final document is prepared and complete information is available. Dolores Otting agreed with the comments of Ms. Genis, and requested that when the final document is available that it be placed on the City's website. She also noted that the money that will be available for water quality will be shared by all of the cities in the County and will not just go to Newport Beach. Sabrina Dagostino, The O. C. Cruiser, provided information on the O. C. Cruiser, a new community transportation service that will be offered in the summer of 2006. She stated that funding for the service will be provided through Measure M and encouraged the City Council to support the proposed resolution. Art Leahy, Chief Executive Officer of the Orange County Transportation Authority (OCTA), explained the process involved for renewing Measure M. He also reported on the funding and improvements that would be provided through the renewed program. In response to Council Member Nichols' questions, Mr. Leahy stated that projects such as the Santa Ana River crossing are not being included in the Measure M program, and explained that funding is only being provided for projects that have been defined and already accepted by the community. Motion by Council Member Curry to adopt Resolution No. 2006 -34 approving the Transportation Investment Plan to be submitted to the voters in November 2006. The motion carried by the following roll call vote: Volume 57 - Page 651 City of Newport Beach City Council Minutes May 9, 2006 Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle Noes: Council Member Nichols 12. PROPOSED CITY COUNCIL POLICY B -17 /PARKS, FACILITIES AND RECREATION PROGRAM DONATIONS (contd. from 4/25/06). [100 -2006] Mayor Pro Tem Rosansky referred to Section B(3)(ii)(c) of the proposed policy and stated that he supports the notification process, but has concerns for requiring an endorsement from homeowners associations. Motion by Mayor Pro Tem Rosansky to approve proposed City Council Policy B- 17, combining all parks, public improvement, facilities and recreation program donations into one citywide donation policy, as recommended by the Parks, Beaches and Recreation Commission, and as modified to change the language in 13(3)(ii)(c) to, "...notification of residents and any homeowners association or common interest development, when applicable, within 300 feet of placement'; and subsequently delete current City Council Policy G -5. In response to Council Member Nichols' question, General Services Director Harmon confirmed that the Parks, Beaches & Recreation Commission has final approval of the location of bench donations. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle Noes: Council Member Nichols 13. AMENDMENT TO COUNCIL POLICY F -14 (SERVICE CONTRACTS). [100- 2006] W. R. Dildine expressed his support for the proposed document, but stated that he does have some concerns for the section covering public works contracts. Motion by Mayor Pro Tem Rosansky to adopt Resolution No. 2006 -35 amending Council Policy F -14. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols 14. COUNCIL CONSIDERATION TO FORM A COMMITTEE TO STUDY APPROPRIATE WAYS TO HONOR THE FALLEN FROM THE 1ST MARINE BATTALION 1ST MARINE DIVISION OF CAMP PENDLETON. [100 -2006] Mayor Webb suggested that the size of the proposed committee be reduced. Motion by Council Member Curry to form a committee with the following make- up: one (1) City Council member, two (2) members from the existing 1/1 Committee, one (1) member from the Parks, Beaches & Recreation Commission, one (1) member of the Arts Commission, one (1) City staff member and one (1) member Volume 57 - Page 652 City of Newport Beach City Council Minutes May 9, 2006 from American Legion Post 291 Dolores Otting stated that if a memorial is considered, it should recognize all of the armed services and not just the lst Battalion 1st Marines, and she further suggested that financial support for the families of the fallen Marines be considered instead. Council Member Ridgeway agreed with many of Ms. Otting's comments, and suggested that the committee be directed to consider honoring the fallen Marines in a way outside of a memorial. Council Member Curry expressed support for the initial intent. Council Member Nichols expressed support for a broader recognition. Council Member Curry amended the motion to add direction to the committee to review the overall concept and recommend how the fallen Marines can best be honored. The original motion, as amended, carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols K. PUBLIC HEARINGS 15. PENDRAGON NORTH AMERICA AUTOMOTIVE INC. (LAND ROVER NEWPORT BEACH SERVICE CENTER - 2101 DOVE STREET). [100 -20061 Motion by Council Member Ridgeway to approve the request by adopting Resolution No. 2006 -36 for General Plan Amendment No. 2004 -009, Use Permit No. 2004 -043, Traffic Study No. 2005 -006 and Mitigated Negative Declaration (SCH No. 2006 - 021036) and introducing Ordinance No. 2006 -14 for Code Amendment No. 2004 -012, and passing to second reading on May 23, 2006. Council Member Daigle confirmed with Planning Director Temple that the applicant is in agreement with the recommended action. Mayor Webb opened the public hearing. Hearing no testimony, Mayor Webb closed the public hearing. Council Member Nichols referred to the maps provided in the staff report, and asked how much rezoning is being done. Mayor Webb explained that only the Land Rover parcel would be rezoned. Council Member Nichols received additional clarifications on the proposed project. Council Member Ridgeway confirmed with Planning Director Temple that there is a condition requiring that the car carriers unload on site and not on the street. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols Volume 57 - Page 653 City of Newport Beach City Council Minutes May 9, 2006 16. REVIEW OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FISCAL YEAR 2006 -2007 ONE -YEAR ACTION PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. 1100 -20061 Council Member Nichols asked if discontinuation of the program had ever been considered. Council Member Ridgeway stated that the grant is very important to the City in the long -term and noted that a large portion of it is being used to pay off the loan for the Balboa Village revitalization project. A general discussion followed and Mayor Webb confirmed that the City is distributing the maximum amount allowed and recognizes that it is decreasing. Motion by Council Member Ridgeway to approve the 2006 -2007 CDBG Action Plan; authorize the City Manager or his designee to execute the FY 2006 -2007 CDBG Program Grant Agreement and all related documents on behalf of the City; and adopt Resolution No. 2006 -37 authorizing the City Manager to submit the FY 2006 -2007 application for CDBG funds and One -Year Action Plan to HUD. Mayor Webb opened the public hearing. Hearing no testimony, Mayor Webb closed the public hearing. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Webb, Council Member Ridgeway, Council Member Daigle Abstain: Council Member Nichols Absent: Mayor Pro Tem Rosansky 17. GENERAL PLAN UPDATE: LAND USE AND CIRCULATION ELEMENTS, IMPLEMENTATION PROGRAM AND DRAFT ENVIRONMENTAL IMPACT REPORT. [681100 -20061 Noting those in attendance at the current meeting to address the Santa Ana Heights horse trail issue, Mayor Webb stated that by approving Item No. S20 earlier in the meeting, the City Council adopted a policy that requires County input on any changes that the City makes to the General Plan and the Santa Ana Heights Specific Area Plan. He noted that a drawing has been added to the General Plan Circulation Element that shows trails in the City and stated that this change will be submitted to the County, which means that no determination would be made on the Santa Ana Heights horse trail at the current meeting. He stated that those that still wish to address the City Council may do so, but to keep this information in mind. Harry Rinker spoke in opposition to the equestrian trail, and he recognized those in the audience who also opposed the trail. Bob Nichols spoke in opposition to the trail. Buck Johns spoke in opposition to the horse trail and expressed support for the City Council's action on Item No. S20. Jayne Jones spoke in support of the equestrian trail. Using a PowerPoint presentation, she displayed a map of where the proposed trail is located and photos of horseback riders who are currently required to use the streets where there are no Volume 57 - Page 654 City of Newport Beach City Council Minutes May 9, 2006 trails Council Member Ridgeway asked if the bay could also be accessed by going west on Mesa Drive from Cypress Street, instead of east to the end of Mesa Drive. Ms. Jones responded in the affirmative. Recognition was given to those in the audience who support the proposed trail. Mary Slocan reported that the utilities on Cypress Street and Mesa Drive are going to be undergrounded, noting that it would be an ideal time to put in the new all- purpose trail. In response to Council Member Ridgeway's earlier question, she stated that non - equestrians would also use the trail to access the park at the end of Mesa Drive. Jeff Dickman, County of Orange, stated that the County has a master plan that connects with the Santa Ana Heights area. He offered to assist with the design of the trail and believed that it could be supported by the community. Jenna Jarvis spoke in support of the trail. Harry Terrell clarified that the area near Santa Ana Heights is considered the Upper Bay, and not the Back Bay. Sheila Ferguson stated that the trail has already been approved and it is time that it be constructed. Holly Jarvis spoke in support of the trail, and stressed that it will be a multi -use trail. Valerie Bath spoke in support of the trail, citing her difficulty in pushing a baby stroller in the area. In response to Council Member Daigle's question, Public Works Director Badum confirmed that there is not a walkway in the area of Ms. Bath's home. He added that the street is unfinished and that he would expect the City to make the improvements in the future if it has control of the redevelopment agency. David Wooters spoke in opposition to the horse trails. Mayor Webb stated that the City will get more input from the County, and suggested that the audience participate in the meetings of the County when the matter is discussed. Mayor Webb called for a recess 8:45 p.m., and reconvened the meeting at 8:55 p.m. with all Council Members present. Assistant City Manager Wood reported that the Planning Commission at its meeting on May 4, 2006, discussed three subareas of the Land Use Element. These included the airport area, Mariners' Mile, and Old Newport Boulevard. Council Member Ridgeway announced that he is recusing himself from the discussion of the airport area because he has a conflict of interest. In response to Mayor Pro Tem Rosansky's question, Assistant City Manager Wood explained the reasons why the addition of residential units is being considered in the General Plan. Woodie Tescher, EIP Associates, provided additional information Volume 57 - Page 655 City of Newport Beach City Council Minutes May 9, 2006 regarding housing requirements. Using a PowerPoint presentation, Assistant City Manager Wood displayed the four options recommended by the Planning Commission for the airport area, as also provided in the staff report. Additionally, she displayed a fifth option being recommended by staff that would be "trip neutral ", which means that the trip generation would be the same as the existing General Plan. Specifically, the staff recommendation would reduce the total number of dwelling units to 2,200, allow a maximum of 550 of those units to be additive and place a cap of 50 units per acre in the replacement areas. The replaced development would be 28.3 acres of office and 4.7 acres of commercial. Additionally, the recommendation assumes that Conexant would remain industrial and the Campus tract would not be considered for mixed use. She also displayed maps of the airport area. Council Member Selich expressed his support for the staff recommendation. No objections were heard. Dolores Otting received clarification on the location of the additional housing. She expressed opposition to the belief that residents in the airport area will stay in the airport area. Assistant City Manager Wood clarified that their leisure trips would be during the nonpeak hours of travel, however. Philip Bettencourt, representing Brookfield Homes, stated that in response to some of the questions raised at the City Council meeting on April 25, 2006, he wanted to note that the Brookfield development is within the Newport Place Planned Community, which has existing special land use restrictions on residential. Secondly, he expressed his discomfort with the ten -acre parcel minimum because it requires parcel consolidation. Lastly, Mr. Bettencourt stated that the Brookfield project would be of modest density, and is located at Spruce and Quail Streets. Carol McDermott, speaking of behalf of the Koll Company, expressed support for the staff recommendation. Assistant City Manager Wood reported that the Planning Commission discussed two options for the Mariners' Mile area. The first option allowed residential use on the harbor side of Coast Highway and the second option did not. After incorporating a change to one of the inland parcels, the first option results in 1937 fewer trips than the existing General Plan and the second option results in 384 more trips than the existing General Plan. She stated that staff is also recommending a third option that would also not allow residential use on the harbor and makes a change to commercial use, resulting in 1307 fewer trips than the existing General Plan. The Planning Commission recommended the first option, but wanted the City Council to consider both of the options that they reviewed. Mayor Pro Tem Rosansky expressed opposition to residential use on the harbor side of Coast Highway in Mariners' Mile, and his support for the third option. He listed the many parcels in the area that have redeveloped under the current zoning and did not feel that introducing residential on the harbor side was necessary. Council Member Ridgeway expressed support for the first option. He stated that mixed use will make the area more viable, promote revitalization and reduce traffic trips. Volume 57 - Page 656 City of Newport Beach City Council Minutes May 9, 2006 Council Member Selich stated that the character of the harbor, not just trip counts, needs to be taken into consideration. He expressed his support for the third option, and the economic opportunities and good planning that it provides. Council Member Daigle stated that there are other aspects to urban planning than trip counts, and also expressed her opposition to residential use on the harbor side. Council Member Curry stated that the first option provides the opportunity to reduce trips, while allowing for the redevelopment of the area in a proper and effective way. Mayor Webb stated that some residential use will work well in the area, and noted that there is already residential use on the water elsewhere in the City. Keenan Smith, architect and urban planner, expressed support for mixed use in Mariners' Mile, and noted that residential use is the critical element for mixed use to work. He felt that it should be placed whereever possible. Dan Daniels, Ardell Investment Company, owners of the Ardell property, stated that some residential use is desirable to property owners and is also necessary if Mariners' Mile is to be revitalized. Mark Murrel shared his involvement with Mariners' Mile and stated that visitor serving, retail type uses have had difficulty being successful in Mariners' Mile. He expressed his support for mixed use on both sides of the highway and stated that it is vital to the revitalization of the area. Dolores Otting requested that the City Council also consider access to Hoag Hospital when making its decision. Darlene Lasher, owner of property between the Ardell property and the Sea Scout Base, expressed her support for including housing in the mixed use plan in Mariners' Mile. Carol McDermott stated that the General Plan update visioning process consistently showed that people support revitalization of the Mariners' Mile area. She stated that existing restrictions have limited revitalization in the past, and she expressed her support for residential use on the water. She stated that it would provide a significant community benefit. Brad Avery, Orange Coast College, expressed his support for mixed use development in the Mariners' Mile area. Dr. Jan Vandersloot, GPAC member, expressed his opposition to residential use on the harbor side, and he disagreed that the other option would create additional trip counts. Discussion followed with differing opinions on whether trip counts are reduced or increased with residential development. Motion by Council Member Curry to approve the first option, which would allow residential use on the harbor side of Coast Highway at 12 dwelling units per acre and limit commercial use to 0.5 Floor Area Ratio (FAR). Volume 57 - Page 657 City of Newport Beach City Council Minutes May 9, 2006 Substitute motion by Mayor Pro Tem Rosansky to approve the third option, which would not allow residential use on the harbor side of Coast Highway and would limit commercial use to 0.5 FAR, except on inland properties east of Rocky Point without lot consolidation, where the limit would be 0.3 FAR. The substitute motion failed by the following roll call vote: Ayes: Council Member Selich, Mayor Pro Tem Rosansky, Council Member Daigle Noes: Council Member Curry, Mayor Webb, Council Member Ridgeway, Council Member Nichols The motion carried by the following roll call vote: Ayes: Council Member Curry, Mayor Webb, Council Member Ridgeway, Council Member Nichols Noes: Council Member Selich, Mayor Pro Tem Rosansky, Council Member Daigle Council Member Selich suggested that vertical mixed use, and not horizontal mixed use, be allowed on the waterfront. Council Member Ridgeway disagreed with such specifics being discussed, at this point. Council Member Daigle stated that guidelines should be considered. Council Member Curry suggested that staff provide additional information on the subject at a future meeting. Mayor Webb stated that there are other aspects to consider. Council Member Ridgeway stated that he's not -- -- opposed to considering standards in the future. It was the consensus of the Council Members to have staff study the matter further and return to the City Council with additional information. Assistant City Manager Wood displayed a map of the Old Newport Boulevard area and outlined the three options considered by the Planning Commission. Option 1 would designate the entire area for medical office. Option 2 would designate the entire area for general office. Option 3 retains mixed use on the east side of Old Newport Boulevard and designates the west side for general office. The Planning Commission recommended that Options 1 and 3 be considered further by the City Council. Clarifications and additional information were provided in response to questions by the Council Members. Mayor Pro Tem Rosansky received clarification on why the Planning Commission did not support Option 2. He also received confirmation that medical use is allowed within the general office designation, and noted that Option 2 results in over 3,000 fewer trips than the existing General Plan. Motion by Ma or Pro Tem Rosansky to approve Option 2. Barbara Rawlings stated that parking is going to be a problem at the new development at Orange Avenue and Old Newport Boulevard. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols Assistant City Manager Wood displayed the current proposal for Newport Center, which included an addition of 450 residential units, 75,000 square feet of retail and Volume 57 - Page 658 City of Newport Beach City Council Minutes May 9, 2006 60 hotel rooms, and no additional office space. She then displayed the entitlement reductions that The Irvine Company agreed to in the Newport Center traffic impact area, which included reductions in residential development at Bonita Canyon, Newporter North and the Freeway Reservation, and reductions in commercial development at the Bayside Center, the Bluffs Center, Eastbluff Village Center, Harbor View Center and Newport North Center. She additionally noted that a change in the designation of Sherman Gardens from commercial to private institution would provide further trip reductions. Council Member Selich noted that Sherman Gardens is in agreement with the redesignation. Motion by Council Member Ridgeway to approve the Newport Center/Fashion Island area as presented. There were no objections heard L. PUBLIC COMMENTS Barbara Rawlings shared her recent experience attempting to visit Back Bay View Park, and noted that it is difficult to find parking or access the park. Dolores Otting expressed her support for a traffic signal at San Miguel Drive and Spyglass Hill Road, as announced earlier by Council Member Curry. Additionally, she suggested that the Mayor promote the fundraising efforts taking place for the McFadden Square Plaza. And, lastly, she encouraged the public to contact Council Members with their input regarding the City's 2006 -2007 Capital Improvement Program. M. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES - None. N. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 18. PLANNING COMMISSION AGENDA FOR MAY 4, 2006. [100 -2006] Received and filed written report. O. CURRENT BUSINESS 19. SANTA ANA HEIGHTS FIRE STATION AND TRAINING CENTER (C- 3626). [381100 -2006] Assistant City Manager Kiff outlined the staff recommendations, as provided in the staff report. Mayor Pro Tem Rosansky asked what guarantee the City has that it will be reimbursed from the redevelopment agency. Assistant City Manager Kiff stated that it is a legitimate redevelopment expense, and City Manager Bludau added that there is no guarantee, but staff does feel that the City would be reimbursed for the full cost of the fire station. In response to Council Member Nichols' question, Assistant City Manager Kiff stated that there is sufficient funding for the fire station, as well as the other projects that the Santa Ana Heights Project Advisory Committee (PAC) desires to accomplish. He expressed confidence that the County would provide the Volume 57 - Page 659 City of Newport Beach City Council Minutes May 9, 2006 reimbursement. Council Member Daigle expressed concern for the wording of the sixth staff recommendation, and explained that the action taken at the current meeting should not assume that the City will receive full reimbursement for the fire station. She suggested that the sixth recommendation be changed to read, "direct the City Manager to bring to the City Council for approval a plan for reimbursement of the general fund contribution to the project from the Santa Ana Heights redevelopment project area ". Council Member Curry suggested that the City request the County to adopt a resolution for reimbursement or an intention to fund this project. Council Member Selich expressed concern for committing to the project without knowing what the City will receive back from the County. He suggested that the matter be continued until there is a confirmation on the amount that the City will receive. City Manager Bludau suggested that the Council Members consider what would happen if the City is not fully reimbursed by the County, noting that the fire station is essential. Council Member Selich stated that it could be placed on the Capital Improvement Program list and considered along with the other projects in the City. Council Member Ridgeway provided a brief history of the project, and expressed his belief that the County would provide the reimbursement. He agreed with Council Member Daigle's suggestion for the sixth recommendation and suggested that language also be added to indicate that the funding would not impair the integrity of the other projects that are on PAC's list. It was the consensus of the Council Members that the fire station is needed. Council Member Curry suggested that the City adopt a resolution of inducement that would protect the City and allow it to reimburse itself in the event that the money is not received from the County. Fire Chief Riley expressed his support for approving the project at the current meeting, and stated that the department has been using a temporary facility for five years and timing is an issue. Additionally, he noted the community involvement that has taken place on the issue and discussed the importance of the training facility that would be included in the project. Motion by Council_Memher Rideeway to 1) approve the plans and specifications; 2) affirm the categorical exemption from provisions of the California Environmental Quality Act (CEQA); 3) approve a budget amendment (06BA -067) appropriating $4,542,397 from the General Fund Capital Improvement Reserves to account 7456 - C2320669 representing the General Fund contribution to the project; 4) award the contract to Bernards Bros., Inc. for the total bid price of $6,495,000 and authorize the Mayor and the City Clerk to execute the contract; 5) establish an amount of $650,000 to cover the cost of testing, unforeseen work and permits and an amount of $227,397 for construction management by GKK Works; 6) direct the City Manager to bring to the City Council for approval a plan for reimbursement of the general fund contribution to this project from the Santa Ana Heights redevelopment project area, provided that such reimbursement does not impair the ability to fund the other projects on PAC's approved project list; and 7) execution of the contract is not to take place until staff brings, back to the City Council a resolution of inducement for Volume 57 - Page 660 City of Newport Beach City Council Minutes May 9, 2006 approval to protect the bonding of the project. Public Works Director Badum stated that the motion would require the contractor to hold his price beyond 45 days. Council Member Curry suggested that the motion include language that expresses the City Council's intent to preserve the right to finance the project at a future date, and stated that a resolution of inducement could then be brought to the City Council at the meeting of May 23, 2006. Council Member Rideeway amended the motion to change the seventh action to read, "if such a resolution has not already been adopted, direct staff to bring back to the City Council for approval a resolution of inducement at the meeting of May 23, 2006, preserving the right of the City Council to finance the project with redevelopment funds at a future date ". Barbara Venezia, PAC Chairman, expressed PAC's support for the fire station, and confirmed that the other projects on PAC's list are also important. The original motion, as amended, carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Webb, Council Member Ridgeway, Council Member Daigle Noes: Mayor Pro Tem Rosansky, Council Member Nichols P. MOTION FOR RECONSIDERATION Motion by Council Member Ridgeway to reconsider the vote on Item No. S20 The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols Motion by Council_ Member Ridgeway to adopt Council Policy K -6 relating to the processing of proposed amendments to the Santa Ana Heights Specific Area Plan, as amended by Council Member Selich's and the City Attorney's handouts. Mayor Pro Tem Rosansky expressed opposition to the proposed policy and explained that the residents of Santa Ana Heights were supportive of being annexed into the City because they wanted their issues resolved locally. He didn't feel that the City should abdicate its duties to the County. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols Noes: Mayor Pro Tem Rosansky Q. ADJOURNMENT - at 11:58 p.m. The agenda for the Regular Meeting was posted on May 3, 2006, at 2:30 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 Volume 57 - Page 661 City of Newport Beach City Council Minutes May 9, 2006 posted on May 5, 2006, at 2:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary ( L2,( ),9 Mayor Volume 57 - Page 662