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HomeMy WebLinkAbout10/26/2010 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes City Council Regular Meeting October 26, 2010 — 7:00 p.m. I. STUDY SESSION - 3:30 p.m. II. CLOSED SESSION - 5:23 p.m A. Conference with Legal Counsel - Existing Litigation (Government Code S 54956.9(a)): One matter: L] City of Newport Beach .v. Bach Bay .Court, LLC, Orange County Superior Court Case No. 30-2010-00385190 One matter: Potential litigation regarding threat of notice of violation from California Coastal Commission for brush clearance allegedly being performed without a Coastal Development Permit on City Sunset Ridge Park property prior to City ownership. C. Conference with Labor Negotiators (Government Code S 54957.6): Agency Designated Representatives: Negotiator Bill Avery; Human Resources Director Terri Cassidy Emplovee Organizations: Newport Beach City Employees Association (CEA); Newport Beach Professional and Technical Employees Association (Prof - Tech); Fire Management Association (FMA) D. Public Employee Performance Evaluation (Government Code § 54957(b)(1)): The City Council will meet in closed session to consider the appointment, employment, evaluation of performance, discipline, or dismissal of one public employee. Title: City Attorney III. RECESS IV. RECONVENE AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Selich, Council Member Rosansky, Mayor Pro Tem Henn, Mayor Curry, Council Member Webb, Council Member Gardner, Council Member Daigle VI. CLOSED SESSION REPORT City Attorney Hunt reported that Council took no action relative to the Closed Session items listed on the agenda; however, announced that the City prevailed in a series of critical motions Volume 59 - Page 605 City of Newport Beach City Council Minutes October 26, 2010 for summary judgment filed in the Pacific Shores Properties LLC, et al u. City of Newport Beach litigation. VII. PLEDGE OF ALLEGIANCE - Council Member Webb VIII. INVOCATION - Jim de Boom, Newport Mesa Irvine Interfaith Council ►® Cultural Arts Grant Checks Presented by the City Council and the City Arts Commission - City Arts Commission Chair Grant provided the annual report and presented the Human Services Grants to Youth Employee Services, Serving People in Need (SPIN), Orange County Council on Aging, Advocates for Grandparent - Grandchild Connection, Central Coast YMCA, and Newport Harbor High School. X. NOTICE TO THE PUBLIC M. 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 Daigle announced that she attended the Corona del Mar Home Tour and the Central Library completed its first season of What's Cooking. She also reported that the library will be participating in National Novel Writing Month in November. Council Member Gardner announced that Police Chief Johnson held a meeting with members of the cycling community. She also requested that a study session item come forward regarding 2901 West Coast Highway and the issue related to the large charter boat so staff could receive direction from Council. Council Member Webb announced that he has almost completed his goal of walking the entire City prior to his second Council term expiring. Mayor Curry announced that he conducted his 8th Meet the Mayor session and that the Upper Bay Project dedication will take place on November 6. He announced that all three bond rating agencies awarded the City with a AAA- rating and the highest possible rating for Certificates of Participation (COPS). MI. CONSENT CALENDAR A. READING OF MINUTES /ORDINANCES AND RESOLUTIONS C. 1. MINUTES FOR THE REGULAR MEETING OF OCTOBER 12, 2010. [100- 2010] Waive reading of subject minutes, approve as written, and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. [100 -2010] Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. 6. CITY HALL AND LIMITED OFFSITE HOLIDAY CLOSURE (C -2051, C- 2056, C -2058, C -2059, C -2060, C -2065, C -2932, C -2946, and C- 3288). [381100 -2010] Approve the closure of the City Hall complex and provide limited Volume 59 - Page 606 City of Newport Beach City Council Minutes October 26, 2010 City services at off -site facilities from Friday, December 24, 2010, through and including Friday, December 31, 2010 (the proposed City Hall closure does not apply to Public Safety or other essential functions that provide necessary municipal services). D. CONTRACTS AND AGREEMENTS 8. BUDGET AMENDMENT FOR THE PURCHASE OF A CNG- POWERED VAN FOR OASIS. [381100 -20101 Approve Budget Amendment No. 11BA -015 in the amount of $27,976 to utilize Air Quality Management District (AQMD) funds for an increase in cost due to the selection of CNG power for an OASIS van scheduled for replacement. 9. PLAYGROUND RESILIENT SURFACE RENOVATION - PHASE 2 - COMPLETION AND ACCEPTANCE OF CONTRACT NO. 4494.[38/100- 20101 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion; b) 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 c) release the Faithful Performance Bond one year after Council acceptance. 10. CARROLL BEEK COMMUNITY CENTER IMPROVEMENTS - AWARD OF CONTRACT NO. 4507. [381100 -20101 a) Approve the project drawings and specifications; b). reject the bid from A2Z Construction, Inc. as non - responsible; c) award Contract No. 4507 to Pointer Enterprises for the total bid price of $84,635, and authorize the Mayor and the City Clerk to execute the contract; d) establish an amount of $8,500 to cover the cost of unforeseen work; and e) approve Budget Amendment No. 11BA -013 recognizing an additional $6,320 in State of California Department of Parks and Recreation 2002 Resources Bond Act Grant funding and appropriating $6,320 to Account No. 7251- C1002023. E. MISCELLANEOUS 11. CORONA DEL MAR PERMANENT BANNER SIGN FRAME. [100 -20101 Receive and file. 12. PLANNING COMMISSION AGENDA FOR OCTOBER 19, 2010. [100- 20101 Receive and file written report. Motion by Mayor Pro Tem. Henn: seconded by Council Member Rosanskv to approve the Consent Calendar, except for the items removed (3, 4, 5, 7, 13 and 14). The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tem Henn, Mayor Curry, Council Member Webb, Council Member Gardner, Council Member Daigle XIIL ITEMS REMOVED FROM THE CONSENT CALENDAR S. SECOND READING AND ADOPTION OF CIVIL SERVICE ORDINANCE NO. 2010 -20, NEWPORT BEACH MUNICIPAL CODE CHAPTER 2.24 REGARDING THE CIVIL SERVICE SYSTEM TO CONDITIONALLY REPLACE THE CURRENT' CHAPTER 2.24 ADOPTED VIA ORDINANCE NO. 866, AND Volume 59 - Page 607 City of Newport Beach City Council Minutes October 26, 2010 ADOPTING A RESOLUTION AMENDING THE CIVIL SERVICE BOARD RULES AND REGULATIONS. [100 -2010] Dick Nichols requested and received clarification that Council only hires the City Manager, City Attorney; and City Clerk; the hiring of Department Directors is handled by the City Manager; and this form of government has not changed from what is currently written in the municipal code. Dr. Judy Rosener questioned the need to vote on the ordinance if nothing changed. Council Member Gardner clarified that the City Manager's authority is not changing, but other amendments to the Civil Service System are being proposed in the ordinance should Measure V pass. Motion by Council Member Webb, seconded by Council Member Gardner to a) conduct second reading and adopt Ordinance No. 2010 -20 pertaining to the Civil Service System (Newport Beach Municipal Code Section 2.24); and b) adopt Resolution No. 2010 -119 amending the Civil Service Board Rules and Regulations. The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tern Henn, Mayor Curry, Council Member Webb, Council Member Gardner, Council Member Daigle 4. ZONING CODE UPDATE (PA2009 -034) - CODE AMENDMENT NO. 2009 -001. [681100 -2010] In response to Jim Mosher's questions, City Attorney Hunt discussed Charter Section 414 regarding publishing ordinances. He indicated that an ordinance summary of the Zoning Code will need to be published and the City Clerk's Office has prepared the summary in accordance with the Government Code in the event Measure V passes. He confirmed that publishing the entire ordinance would cost about $128,000. Lori Morris noted that she would support Measure V if ordinance publications was the only issue; however, she pointed out that Measure V contains 14 issues in one question. Tom Billings agreed with Ms. Morris and believed that Measure V is complicated. In response to Dick Nichols' questions, Acting Planning Director Campbell clarified that the Zoning Code covers the entire City, the Floor Area Ratio (FAR) is not changing in Corona del Mar; the Zoning Code .was vetted in over 45 meetings, and the document is over 440 pages. He reported that Section 20.37.100.C.1.a needs to be removed and that staff will periodically bring clean -up amendments to Council for adoption. Motion by Council Member Webb, seconded by Mayor Pro Tern Henn to conduct second reading and adopt Ordinance No. 2010 -21 relating to the comprehensive Zoning Code Update (the draft Zoning Code Update was prepared to implement the City's Land Use Element and other policies affecting land use and development contained in the 2006 General Plan). 5. JAMBOREE ROAD IMPROVEMENTS (BRISTOL STREET NORTH TO FAIRCHILD ROAD) - ADOPTION OF MITIGATED NEGATIVE DECLARATION. [100 -2010] In response to Dick Nichols' question, Council Member Daigle reported that the project Volume 59 - Page 608 City of Newport Beach City Council Minutes October 26, 2010 will try to improve the area's level of service as it relates to traffic capacity. Motion by Council Member Webb, seconded by Mayor Pro Tem Henn to a) approve the conceptual design of the Jamboree Road Improvements (Bristol Street North to Fairchild Road) Project; and b) adopt Resolution No. 2010 -120 adopting a Mitigated Negative Declaration (MND), and the Mitigation Monitoring and Reporting Program (MMRP) on the basis of the entire environmental review record. The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tem Henn, Mayor Curry, Council Member Webb, Council Member Gardner, Council Member Daigle CONSIDERATION OF CREATION OF A REAGAN CENTENNIAL COMMISSION AND ADOPTION OF A RESOLUTION ESTABLISHING THE RONALD REAGAN CENTENNIAL COMMISSION. [100 -20101 Council Member Selich believed that the formation of a commission is premature without a recommendation from the Parks, Beaches and Recreation Commission. Motion by Council Member Selich. seconded by Council Member Gardner to postpone forming the Newport Beach Ronald Reagan Centennial Commission until the City Council receives a recommendation from the Parks, Beaches and Recreation Commission. Mayor Curry stated that he is recommending that the issue not come back to Council until PB &Rand the Reagan Commission present recommendations. He pointed out the time constraint with former President Reagan's 100th birthday coming in February 2011. He also noted how the 54 parks have been named. Council Member Rosansky indicated that he is not opposed to honoring former President Reagan, but noted that the establishment of the 1/1 memorial was not a City - run committee. He recommended having interested parties work with staff in developing an appropriate way to honor him and still have PB &R review the issue. Council Member Daigle requested that the City take the residents' views into consideration who live around the perspective park. She stated that PB &R and Council are the appropriate bodies to make decisions about park signage. Laura Curran believed that this is an unnecessary diversion of resources. The motion failed by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Council Member Gardner. Noes: Mayor Pro Tem Henn, Mayor Curry, Council Member Daigle Abstain: Council Member Webb Motion by Mayor Curry, seconded by Mayor Pro Tem Henn to a) adopt Resolution No. 2010 -121 creating a. Ronald Reagan Centennial Commission; b) solicit applications for participation on the Commission; c) establish the number of members of the Commission at eight members selected by the Council with a chairman appointed by the Mayor; d) appoint a subcommittee for reviewing applications and recommending appointment to the Commission; e) establish the purpose of the Commission; and f) direct the Recreation and Senior Services Department to provide staffing to the Commission. The item will come back to Council after the Parks, Beaches and Volume 59 - Page 609 City of Newport Beach City Council Minutes October 26, 2010 Recreation Commission and the Reagan Centennial Commission have made recommendations so that Council fully understands the details, the costs, and who will pay for the memorial. The motion failed by the following roll call vote: Ayes: Mayor Pro Tem Henn, Mayor Curry, Council Member Daigle Noes: Council Member Selich, Council Member Rosansky, Council Member Gardner Abstain: Council Member Webb 13. HUMAN SERVICES GRANT 2010-2011.[100-20101 In response to Dick Nichols' questions, City Manager Kiff indicated that the City has been providing grants since 1985 and that organizations apply to receive the grants. Motion by Council Member Webb, seconded by Council Member Gardner to authorize the allocation of $25,000 in Human Services Grants to a) Youth Employment Services (Harbor Area) - $5,000; b) Serving People in Need (SPIN) - $3,500; c) Orange County Council on Aging - $4,500; d) Advocates for Grandparent - Grandchild Connection - $4,000; e) Central Coast YMCA - $5,000; and f) Newport Harbor High School - $3,000. The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tem Henn, Mayor Curry, Council Member Webb, Council Member Gardner, Council Member Daigle 14. UTILITY CONNECTION GRANT PROGRAM POLICY AMENDMENT. [100- 2010] Dick Nichols questioned the need for the program. Motion by Council Member Webb, seconded by Mayor Pro Tem Henn to approve the proposed amended Policy to allow for the participation of eligible households on a reimbursement basis subject to submission of qualifying documentation. The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tem Henn, Mayor Curry, Council Member Webb, Council Member Gardner, Council Member Daigle XIV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Daigle reported that Council Member Gardner, staff, and she met with the Army Corps of Engineers relative to the Upper and Lower Bay dredging projects, and the Rhine Channel dredging project. Council Member Gardner added that there was also discussion about dredging the Newport Slough and Santa Ana River Marsh. Council Member Gardner reported that the Newport Bay Executive Committee discussed the selenium issues and stated that the costs involved to mitigate the issue will be allocated to the various cities. XV. PUBLIC HEARINGS Volume.59 - Page 610 City of Newport Beach City Council Minutes October 26, 2010 15. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE TO UNITED PACIFIC WASTE, A CALIFORNIA CORPORATION. [421100 -20101 City Manager Kiff provided a staff report. Mayor Curry opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Rosansky, seconded by Council Member Webb to conduct second reading and adopt Ordinance No. 2010 -19 relating to the award of a Non- exclusive Solid Waste Franchise to United Pacific Waste, a California corporation. The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tern Henn, Mayor Curry, Council Member Webb, Council Member Gardner, Council Member Daigle 16. NEWPORT BUSINESS 'PLAZA (PA2008 -164) - 4699 JAMBOREE ROAD AND 5190 CAMPUS DRIVE. [100 -20101 Associate Planner Brown utilized a PowerPoint presentation to display Statistical Area L4 (Airport Area), the vicinity map; and the proposed business plaza. She highlighted the proposed plan and discussed the Planning Commission's approval. She reviewed the recommendations and noted that there is also a recommendation to waive the requirement for a development agreement. In response to Council Member Rosansky's questions, Associate Planner Brown highlighted the three findings. Acting Planning Director Campbell indicated that staff did not believe a development agreement was needed because of the size of the project. Council Member Daigle emphasized the opportunity to revitalize the area, especially since it is the gateway into the City. Council Member Gardner requested and received clarification from Acting Planning Director Campbell regarding the traffic model, assumptions made when calculating trips, and the reason for the net decrease in vehicle trips. He added that the General Plan Amendment is based on gross square footage, whereas the Planned Community Amendment is based on net square footage. He confirmed that there is a discrepancy between the square footage on the ground and the actual planned community text. Mayor Curry opened the public hearing. Meg Shockley, project representative, stated that the principals for the project and the project architect are in attendance if Council had any questions. Laura Curran requested more details about the project and stated that she is unsure how this project could impact her or the environment. She noted that this project did not go before the Environmental Quality Affairs Committee (EQAC). Lori Morris noted that she had difficulty viewing the staff report online. She questioned why the requirement for a development agreement would be waived, and asked if there are entitlements and if this project falls under Greenlight. Acting Planning Director Campbell noted that the application is for a general plan amendment to increase entitlement and that this type of project does not require Volume 59 - Page 611 City of Newport Beach City Council Minutes October 26, 2010 EQAC's review. Evan Raabe, project architect, displayed the project location and proposed project plan, and noted that the only residences near the project live in high rise towers. He stated that it is the applicant's intent to create a gateway into the City from Irvine. Hearing no further testimony, Mayor Curry closed the public hearing. Council Member Rosansky noted that he and Council Member Selich sit on a committee to negotiate development agreements for a couple of projects, and questioned why the City has not sat with the developer to talk about the possibility of having a development agreement. Motion by Council Member Rosansky, seconded by Council Member Gardner to continue the item until the City can have further discussions with the applicant about having a development agreement. Council Member Daigle stated that staff can make technical findings relative to the project and indicated that she will not be supporting the continuance since this project is small compared to the other projects that have development agreements. Further, she reiterated the importance of having economic revitalization in the area and creating some type of gateway into the City. In response to Council questions; Acting Planning Director Campbell reported that NBMC Section 15.45 requires that new non- residential development in the Airport Area requires a development agreement, noting that there is a provision that allows for a waiver of a development agreement. .Council Member Selich noted that the project is 11,000 square feet and questioned why it does not need a development agreement. Substitute motion by Council Member Daigle, seconded by Mayor Pro Tem Henn to adopt Resolution No. 2010422 documenting the following City Council actions: 1) adopt the Mitigated Negative Declaration, including the Mitigation Monitoring and Reporting Program; 2) approve General Plan Amendment No. 2008. 007; 3) approve Tentative Parcel Map No. 2010 -006; and 4) waive the requirement for a Development Agreement; and c) introduce Ordinance No. 2010 -22 approving Planned Community Development Plan Amendment No. PD2009 -001, and pass to a second reading for adoption on November 9, 2010. Mayor Curry believed that, in the interest of economic revitalization in this part of the City and due to the size of the project, a development agreement is not necessary. The substitute motion failed by the following roll call vote: Ayes: Mayor Pro Tem Henn, Mayor Curry, Council Member Daigle Noes: Council Member Selich, Council Member Rosansky, Council Member Webb, Council Member Gardner Council Member Rosansky pointed out that this issue will not just be inclusive of this project since there are other developers who will be entering into a development agreement with the City. He stated that City staff can meet with the applicant regarding the development agreement issue. Following discussion, City Attorney Hunt indicated that Council can continue the matter and create a subcommittee or direct staff to meet with the applicant and come Volume 59 - Page 612 City of Newport Beach City Council Minutes October 26, 2010 back to Council with a recommendation on whether to enter into a development agreement. He indicated that the recommendation can come back on November 23; however, if a development agreement is needed, it will need to come off Council's agenda so it could be heard by the Planning Commission since it changes the project. Amended motion by Council Member Rosanskv. seconded by Council Member Gardner to a) continue the item to the November 23 meeting; and b) direct City staff to make a recommendation to the City Council as to whether the City and applicant should enter into a development agreement. The amended motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tem Henn, Mayor Curry, Council Member Webb, Council Member Gardner, Council Member Daigle XVI. PUBLIC COMMENT Mayor Curry recognized that most of the audience was in attendance to speak about the Morningside Recovery home that opened at 533 Via Lido Soud on Lido Island and noted that Council has received their emails. City Manager Kiff provided a statement relative to his meeting with the residents last Thursday and emphasized that the City does intend to enforce its laws. City Attorney Hunt emphasized that the City is concerned with what happened on Lido Island but is in a difficult position. He stated.that Morningside Recovery is not in violation of the zoning agreement's terms that were approved on September 28, but noted that the agreement is currently not in effect. He emphasized that the City takes enforcement very seriously, pointed out that Sober Living by the Sea's review will be on the next agenda, at least three staff members are dedicated to group homes issues; and Morningside's decision to open on Lido Island was vetted with the City but the timing was a surprise. He reported that, even though the zoning agreement is not in effect until December 28, Morningside has made a verbal commitment to honor the terms. He stated that they are exempt from Ordinance No. 2008 -5 during the period between the adoption of the zoning agreement and the effective date. Willis Longyear stated that over 100 people showed up to Morningside's open house and took issue with City Manager Kiffs comments that day. He believed that Morningside's lease is invalid and requested that the City require. Morningside to cease its operation at least until December 28 and the validity of the lease is established. Bettina Deininger believed that the property was leased without all the heirs signing it. She took issue with City Manager Kiffs comments, noted that the City should insist that staff enforce its ordinances, and the facility should cease its operation. Lori Morris believed that the facility is acting as a satellite facility and the City has some type of connection with Morningside and Sober Living by the Sea. She believed that the taxpayers will end up paying for the lawsuits if the facilities are not responsible for its clients. Edward Cook indicated that he discovered the flaw in the lease. He reported that he is building a home near the facility and expressed concern for his children when they move in. He believed the residents of the facility are not honorable and urged the City to protect Lido Island residents' rights. Tom Billings expressed his opposition to the facility being opened on Lido Island which has never had a business operating on the Island and which is a dense residential neighborhood. Volume 59 - Page 613 City of Newport Beach City Council Minutes October 26, 2010 He pointed out that Council and staff are supposed to be stewards of the City's quality of life and requested that they fight for the residents. Mayor Curry left the meeting at 8:50 p.m. Cynthia Koller relayed her experiences with Morningside, believed that this facility is not following ADP guidelines, and took issue that the City is not enforcing its ordinances. Denys Oberman stated that residents report nuisances every day but the City does not enforce its ordinances. She asked about the residents' rights and believed that this is a land use management issue. She urged the City to enforce the integral facility provisions and took issue that Morningside discovered a loophole to the agreement. She questioned whether they will open more facilities on Lido Island. Paul Weinberg emphasized that homes are too close together on Lido Island and that this facility is an incompatible use. He asked why the City did not tell the residents once it found out. Jack Thomson indicated that he is the next door neighbor to the facility, reported on the violations that occur at the facility, and expressed concern for the impacts on their property values. Mike Zawadski expressed his disappointment with Morningside for violating the spirit of the agreement by moving forward with the facility before the agreement was in effect. He believed that Morningside is putting their profits ahead of their patients' confidentiality and took issue with the amount of smoking that occurs at the facility. Dr. Judy Rosener questioned the connection between the group homes and members of Council and staff, and asked why the City cannot control this issue. John Wallace expressed concern relative to the bed count and asked whether Morningside will be opening more facilities on Lido Island. Mary Helen Beatificato, legal representative for Morningside Recovery, stated that Morningside has made many concessions to appease the concerns of the public. She highlighted the zoning agreement and pointed out that there'is a cap on the number of ADP licensed facilities they can have in the City. She stated that the locations in the zoning agreement were not set in stone and that the Lido Island facility does not violate the agreement. She assured the audience that no member of Council or staff have a relationship with Morningside. Julie Ackerman noted that Lido Island is their home and not a business, and took exception to being surprised about the facility. Victoria Zawadski expressed concern that the facility participants have no confidentiality and that the facility is violating many of the conditions in the agreement. She requested that the City enforce the agreement. Roger McGregor stated that he has not seen an issue unite Lido Island like this. He believed that, under current code, the facility is not authorized to be there and requested that the City remove them. Laura Sharp expressed concern about what the City can do in these instances and asked about penalties. Candice Bruce, Morningside Recovery, apologized for the miscommunication relative to them Volume 59 - Page 614 City of Newport Beach City Council Minutes October 26, 2010 moving in before the effective date of the agreement. She stated that they have been quick to respond to issues that are brought to their attention and intend to abide by the terms of the agreement even though it technically is not in effect. She indicated that it is not necessary for the facility to be Health Protection Act (HPA) compliant. She discussed issues that have occurred with residents to the facility residents. She stated that they are considering making the facility a non - smoking facility and that it is not their intention to have other houses located on Lido Island. She noted that they are at their capacity as indicated in the agreement. In response to Mayor Pro Tom Henn's questions, Ms. Beatificato indicated that they are willing to abide by the zoning agreement and are currently complying with the agreement. Mayor Pro Tem Henn pointed out that this item is not on the agenda and Council is not in a position to make a decision tonight. He assured everyone that they will take all comments to heart and will work on resolving this issue. Regarding Ordinance No. 2008 -5, City. Attorney Hunt reported that the zoning agreement states that there is a stay on enforcing the ordinance pending the effective date. Further, the ordinance does not direct where an operator may or may not locate, but only sets parameters. He reported that the City would normally not be able to prevent Morningside from placing six and under facilities in the City; however, accepted a cap on these types of facilities. City Manager Kiff confirmed that Morningside consulted him relative to whether three possible homes would be in compliant, but he now realized that he should have told Ms. Bruce that Morningside should wait until the December 28 effective date. City Attorney Hunt pointed out that the City does not have any standing regarding the lease. In response to Council questions, City Attorney Hunt stated that staff discouraged locating to this site, but they are currently consistent with the law and meet the parameters of the zoning agreement. As far as penalties and sanctions, he stated that the Planning Commission included a provision that allows for notices of violations, fines, and termination of the agreement. He indicated that the City will be looking at reallocating resources to the issue. He noted that, at the November 9 meeting, staff will provide information regarding improvements to, and enforcement of the Sober Living by the Sea Development agreement, as well as the City's posture on enforcement of Ordinance 2008 -05. City Manager Kiff noted that group homes are located throughout the City, not just West Newport; however, the number of beds have dramatically decreased since 2007. He encouraged the public to look on ADP's website to see where the licensed facilities are located in the City and other communities. He highlighted the City's attempts to change legislation and indicated that the City has the budget to hire more code enforcement officers if that is the Council's desire. Mayor Pro Tem Henn stated that the City will be looking closely at this issue so it can provide a better outcome for the residents, as well as residents of the facility. He believed that the City was on a good track with Morningside and that the City was going to be the beneficiary of real and substantially improved standards. He emphasized that the City is going to do its best to make the situation better. He stated that he lives on the Peninsula and his daughter and her family live on Lido Island. He assured everyone. that this is a high priority for himself, as well as for Council as a whole. He noted that Council and staff have spent the last four years and $2 million dealing with this issue on behalf of the residents to make it better and establish a balance. He pointed out that the City has made substantial progress through its efforts in court. He added that the City s ordinance is the most aggressive ordinance in the State, maybe in the country. He reported that Council voted unanimously over the last four years to devote time, energy and resources to make the problem better. He noted that the bed count has Volume 59 - Page 615 City of Newport Beach City Council Minutes October 26, 2010 decreased from 700 -800 beds to 200 -250 beds. He pledged that Council will continue to work to make the situation better. Jim Mosher believed that the City is not following Charter Sections 407, 412 and 421. XVII. CURRENT BUSINESS 17. DEFEASANCE OF THE 1998 LIBRARY CERTIFICATES OF PARTICIPATION. [100 -20101 City Manager Kiff reviewed the recommendations outlined in the staff report. Motion by Council Member Rosansky. seconded by Council Member Webb to a) adopt Resolution No. 2010 -123 authorizing the defeasance of the 1998 Library Certificates of Participation; b) authorize staff to execute the Escrow Agreement substantially to form; and c) approve Budget Amendment No. I IBA -014 appropriating an additional $3,630,000 from General Fund appropriations reserves to defease the 1998 Library Certificates of Participation. The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tem Henn, Council Member Webb, Council Member Gardner, Council Member Daigle Absent: Mayor Curry 18. TRANSFER OF DEVELOPMENT RIGHTS IN NORTH NEWPORT CENTER PLANNED COMMUNITY (PA2010 -122). [100 -20101 Acting Planning Director Campbell. reported that the transfer does not increase the total square footage in Newport Center and there is no traffic impact. Dan Miller, The Irvine Company, stated that the transfer is needed in order to finalize drawings prior to pulling a building permit. He indicated that this probably will not be the last of the square footage transfers, but assured Council that the area will not have an increase in square footage. Motion by Council Member Gardner, seconded by Council Member Webb to adopt Resolution No. 2010 -124 which approves a) a transfer of development rights in the North Newport Center Planned Community for 1) 75,878 square feet of general office from Block 100 to San Joaquin Plaza and 2) 45,236 square feet of general office from Block 100 to Block 600, and b) the relocation of 430 unbuilt residential units from San Joaquin Plaza to Block 500. Laura Curran requested that more descriptive diagrams be included in the staff reports. The motion carried by the following roll call vote: Ayes: Council Member Selich, Council Member Rosansky, Mayor Pro Tem Henn, Council Member Webb, Council Member Gardner, Council Member Daigle Absent: Mayor Curry XVIII. MOTION FOR RECONSIDERATION - None Volume 59 - Page 616 City of Newport Beach. City Council Minutes October 26, 2010 XIX. ADJOURNMENT - Adjourned back into Closed Session at 9:53 p.m. in memory of Richard Stevens and Pat Herzog. The City Council reconvened at 10:30 p.m. and announced that no reportable action was taken during the Closed Session. The meeting adjourned at 10:32 p.m. The agenda for the Regular Meeting was posted on October 20, 2010, at 2:05 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. " I ft-- Recording Secretary Mayor 464 � bg City Clerk Volume 59 - Page 617