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HomeMy WebLinkAbout04/10/2001 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting April 10, 2001 - 7:00 p.m. STUDY SESSION - 4.25 p.m. CLOSED SESSION - 6:00 p.m. CLOSED SESSION REPORT - None. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Absent: Proctor (excused) Pledge of Allegiance - Council Member Bromberg. Invocation by Reverend Dr. Dennis Short, Harbor Christian Church of Newport Beach. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM) - None. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS Removed at the request of Mayor Pro Tem Ridgeway. 2. READING OF ORDINANCES AND full of all ordinances and resolutions Clerk to read by title only. RESOLUTIONS FOR ADOPTION RESOLUTIONS. Waive reading in under consideration, and direct City 3. SALE OF BONDS FOR ASSESSMENT DISTRICT NO. 79 (BEACON BAY). 1) Adopt Resolution No. 2001 -20 which sets forth the terms and conditions for the sale of bonds and approves the Purchase Agreement submitted by the designated underwriter for Assessment District No. 79; and 2) adjust revenue estimates in Account No. 400 -6973 in the amount of $1,590,178.12 to reflect contributions from property owners and the sale of bonds and increase expenditure appropriations in the amount of $1,590,178.12 in Account No. 7401- C5200418 to reflect the net proceeds available to complete construction. CONTRACTS AND AGREEMENTS 4. LEASE AGREEMENT FOR SHIPYARDIRETAIL STORE AT BALBOA Volume 54 - Page 192 INDEX Res 2001 -20 Assessment District 79/ Beacon Bay (89) No report City of Newport Beach City Council Minutes April 10, 2001 YACHT BASIN (WITH BASIN MARINE, INC.) (contd. from 3127/01). Continue to April 24, 2001. 5. DAHLIA AVENUE STREET END/FERNLEAF AVENUE SLOPE REPAIR (C -3157) — ACCEPTANCE AND COMPLETION. 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 year after Council acceptance. 6. VIA LIDO NORD AND SOUD RESURFACING PROJECT — AWARD OF CONTRACT (C- 3372). 1) Approve the plans and specifications; 2) award the contract to Ruiz Engineering Company for the total bid price of $261,017.80 and authorize the Mayor and the City Clerk to execute the contract; and 3) establish an amount of $26,000 to cover the cost of unforeseen work. 7. LICENSE AGREEMENT BETWEEN COUNTY OF ORANGE AND METRO CITIES FIRE AUTHORITY FOR USE OF SIGNAL PEAK. Authorize the City's representative to the Metro Cities Fire Authority Board to approve the Signal Peak License Agreement. MISCELLANEOUS ACTIONS 8. BUDGET AMENDMENT FOR DEFERRED MAINTENANCE PROJECTS AT THE OIL & GAS FIELD FACILITY. Approve a budget amendment (BA -040) in the amount of $80,000 from the Tidelands Fund unappropriated balance to the Oil and Gas Operations Maintenance and Repair Account No. 5400 -8160. 9. Removed at the request of Council Member Bromberg. 10. SET PUBLIC HEARING FOR URBAN WATER MANAGEMENT PLAN. Set public hearing on the update of the City's Urban Water Management Plan for the April 24, 2001 Council meeting. 11. EXCEPTIONS TO CITY COUNCIL POLICY I -8 — BIKE, FOOT RACE AND SURF CONTEST POLICY. Approve the following exceptions to Council Policy I -8 for surf contests for year 2001: 1) Special Event Application No. 01 -010 for Newport Beach Pro -Am Surf Contest, co- sponsored by the City of Newport Beach and Rip Curl, Inc, for September 4 — 9, 2001; and 2) Special Event Application No. 01 -90 for Summer Surf Contest, sponsored by Surfside Sports and Volcom, for June 16 — 17, 2001. 12. APPOINTMENT TO ENVIRONMENTAL QUALITY AFFAIRS CITIZENS ADVISORY COMMITTEE (EQAC). Confirm EQAC's appointment of Cris Trapp as an at -large member. Motion by Mayor Pro Tem Ridgeway to approve the Consent Calendar, except for the items removed (1 and 9), and noting the correction to Item No. 12 and the continuance of Item No. 4 to 4/24/01. Volume 54 - Page 193 INDEX C -3157 Dahlia Avenue Street End/ Fernleaf Avenue Slope Repair (38) C -3372 Via Lido Nord & Soud Resurfacing (38) C -3408 Signal Peak (38) BA -040 Oil & Gas Field Facility (40/73) Urban Water Management Plan (89) Council Policy I -8 (69) EQAC (24) City of Newport Beach City Council Minutes April 10, 2001 The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE REGULAR MEETING OF MARCH 27, 2001. Mayor Pro Tem Ridgeway requested that page 171, paragraph 2, be amended since he did not confirm that there was a height restriction. Mayor Adams requested that page 173, last paragraph, be amended regarding judgment calls. Motion by Council Member Glover to approve and file the minutes, as amended. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor 9. ELECTRIC VEHICLES. In response to Council Member Bromberg's concerns, General Services Director Niederhaus reported that the City pays 4¢ per kilowatt hour when the electric vehicles are charged between 9 p.m. and 6 a.m. and 7¢ or 11¢ per kilowatt hour at other times of the day. He indicated that the vehicles save about $15,000 a year over gasoline costs and that the Toyota vehicles can drive for 85 miles. He added that it would cost over $300,000 to buy 17 gasoline vehicles to replace the electric vehicles. Motion by Mayor Pro Tern Ridgeway to approve a budget amendment (BA -041) in the amount of $13,176 to fund the leasing of three Toyota RAV -4 electric vehicles for a one year period and to extend the lease of one Honda EV Plus for one year; and authorize staff to execute leasing documents with Toyota Motor Company and American Honda Motor Company for the four electric vehicles. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor Volume 54 - Page 194 INDEX C- 3185 /BA -041 Electric Vehicles (38/40) City of Newport Beach City Council Minutes April 10, 2001 INDEX Jim Hildreth, 120 The Grand Canal, stated that his family has been paying annual permit fees for what has long been termed Harbor Permit 801001 since 1976, but their payment was returned on February 27, 2001, because the Harbor Resources Division changed their business number from RP80100011 to MRS01590. He asked if his last payment has been accepted and when he will be permitted to review the Grand Canal documents he has been requesting for over a year. He added that he believes that the Harbor and Bay Element will seize residents' boats and mooring rights. Dolores Otting reported that she tried to take her mother -in -law to the Hoag Hospital emergency room on February 6 and March 16, but was not admitted because all 323 beds were occupied. She stated that she ended up at another hospital and pointed out that people get new doctors when they go to other hospitals. She expressed the opinion that Greenlight was passed too late since the City does not even have basic emergency services available to its citizens. She asked where citizens go who call 911 since they are supposed to go to Hoag and if the City has enough ambulances. She noted that Hoag is building a women's health center and believed that this is not needed. She asked if a hospital task force should be formed. Council Member Heffernan reported that he is on the Hoag Hospital Board of Directors. He indicated that the census is at an all time high, the tower will need to be retrofitted, and they are building a women's pavilion that will have general surgical services. He reported that the hospital's expansion constraint is set by the development agreement and that the hospital is capped on what it can do at that site. He emphasized that the emergency room cannot take any patient by ambulance if there is no bed for that patient in the hospital. Mayor Adams requested that staff look into this. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES • Council Member Bromberg stated that he was impressed with the quality of residents on the City Committees. • Council Member Glover stated that there is a proposal to move the McFadden Square Farmers Market to a parking lot at 16th Street and Dover, which is in a residential area. She reminded everyone that it takes the entire Council to approve items and outlined the process. • Council Member Heffernan reported that the Finance Committee is reviewing the City's investment guidelines and that this will be brought back to the City Council. • Mayor Pro Tern Ridgeway announced that he and Assistance City Manager Kiff went to Sacramento and that Senate Bill No. 124, relating to the purchasing of Sunset Ridge Park at Pacific Coast Highway and Superior, was unanimously passed. He reported that CalTrans presented the only testimony opposing S13124. He added that the City is now on track to purchase the 15 acres for an active park at its original purchase price of about $1.3 million, not the appraised price of $4.6 million. Volume 54 - Page 195 City of Newport Beach City Council Minutes April 10, 2001 INDEX FLANN1NU UUMMR5Z51UN AUENVA ANL UKAL Z5TA"1'UZS KhFURT Planning 13. PLANNING COMMISSION AGENDA FOR APRIL 5, 2001. (68) Planning Director Temple reported that Item Nos. 1, 3, and 7 were continued and Item Nos. 4 and 6 were handled in a routine manner. Ms. Temple stated that Item No. 5 was a request for an upscale retail wine business in the Via Lido area and that the alcoholic beverage outlet ordinance requires that the City consider over - concentration issues when authorizing these. She reported that the Planning Commission felt that the high -end nature of the facility and the City's ability to condition the business made the application approvable. Regarding Item No. 2, Ms. Temple reported that the application was not handled properly and the applicant moved forward even though the use permit does not permit tennis tournaments. However, since the applicant proceeded in good faith and the City was able to bring this matter forward in a public forum in a timely fashion, the Planning Commission ultimately authorized the special event permit on a one - time -only basis. Regarding Item No. 8, Ms. Temple reported that this would add the Site Plan Review Overlay District to all of the bluff -side properties in Corona del Mar, from the end of Irvine Terrace to Little Corona Beach. She indicated that this would allow the Commission to look at site planning issues related to new developments on coastal bluffs. She noted that this was approved by the Commission and will be brought before Council at the next meeting. In response to Council questions, Ms. Temple reported that Shore Cliffs and Cameo Shores have different setback requirements and limitations, and that the Coastal Commission applies different standards to those areas. She confirmed that applying the review is dependent on the percentage of floor area increase or the overall size of the new building. She noted that the Site Plan Review Overlay District contains parameters that are general in nature but the application of this was viewed as an interim measure until a more detailed set of regulations can be developed on the development plan review and regulation of coastal bluff areas. Motion by Council Member Glover to receive and file written report. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor PUBLIC HEARINGS 14. ENCROACHMENT AGREEMENT AND PERMIT FOR EPN2001 -110 CONSTRUCTION AND MAINTENANCE OF PRIVATE 405 Goldenrod and IMPROVEMENTS WITHIN THE ALLEY RIGHT -OF -WAY ADJACENT 405%2 Goldenrod TO 405 & 405'/. GOLDENROD AVENUE, CORONA DEL MAR (N2001- (65) Volume 54 - Page 196 City of Newport Beach City Council Minutes April 10, 2001 100 110) [Owner - Shelly Nora Walker, Trustee to the Brandt Family Survivor's Trust] (contd. from 3/27/01). Public Works Director Webb stated that EPN2001 -110 would extend the alley through the construction of a structure that would support vehicles and provide alley access to the 405 and 405%2 Goldenrod garages. He reported that, due to Council Policy L -2, something needs to be constructed in the back of the property to give it full alley access since it has about 13 feet of alley frontage across the right -of -way. However, after 407 Goldenrod is torn down, 405 Goldenrod would be the only house on the block that would have access to Goldenrod. He reported that Council Policy L -6 prohibits structural encroachments and that the structure should be maintained by the City after it is constructed. He added that the structure will be a part of the building permit for 405 and 405%2 Goldenrod. Mr. Webb noted that a letter from the City Attorney was included in the staff report that indicates that the structure is considered to be a minor structure and categorically exempt from the California Environmental Quality Act (CEQA). Further, single - family and duplex structures in the coastal zone in this area were given an exclusion in 1977. He noted that a condition in the exclusion is that there be no access to the street if there is alley access; however, if there has to be access to the street, parking in the front yard setback is prohibited. He reported that, if access was permitted for 405 and 405% Goldenrod, it would remove one of the two parking spaces that would be gained by the removal of the existing driveway and would place the driveway directly across the street from the entrance /exit of the Goldenrod pedestrian bridge. He stated that construction permits have not been issued but the architect provided staff with calculations and soil reports. He discussed the photos included with the staff report which show the approximate level of the deck. Mr. Webb noted that Exhibit A has corrected dimensions and that Exhibit B shows the corrected alley extension dimensions. He indicated that Exhibit C shows the proposed front elevation for 405 and 407 Goldenrod and Exhibit D shows what 405 Goldenrod would look like if there was garage access from Goldenrod. He confirmed that the front yard setback on Goldenrod is 15 feet and that the coastal zone would restrict cars from parking in front of garages. In response to Council Member Heffernan's questions, Mr. Webb stated that the structure would meet the Building Department's structural standards and that they will also apply CalTrans barrier standards. He pointed out that this is a public right -of -way and that they will not be able to park within the alley area. Mayor Adams opened the public hearing. Eric Welton, 2960 Bayview Drive, confirmed that 405 and 405% Goldenrod would be contained within one building. Mayor Adams confirmed for Allan Stewart, speaking on behalf of his mother Madalyn Stewart who lives at 406 Fernleaf, that the alley extension would eliminate the curb cuts on Goldenrod. Mr. Stewart stated that vehicles currently utilize private driveways to turn around and asked what would happen if the turnabouts are removed. He added that his mother was not notified of the encroachment permit, Mr. Welton was supposed to contact the Volume 54 - Page 197 City of Newport Beach City Council Minutes April 10, 2001 INDEX neighbors about this, and the soil report was never made available to the neighbors. He asked how the removal of the tree will affect the bedrock and who would be responsible for damages. Jim Hildreth, 120 The Grand, expressed concern regarding the chain link fence since they can house skunks and hoped that the guard rail at the end of the alley will be made as strong as possible. Susan Carol, 2710 Bayside Drive, utilized photos to show that the structure would be 10%2 feet from her house, as well as the view from her bedroom window. She pointed out that each of the streets from Carnation to Iris have at least two curb cuts and used a tax map to show which residents would be impacted by the structure. She noted that Rex Brandt was permitted to build the pedestrian staircase over 30 years ago that fed to Rex Brandt's house and hers, but pointed out that it does not give her access into her house. Council Member Bromberg stated that he visited the property three times and noted that two properties in the area were up for sale. Ms. Carol stated that she and her son moved out 2%2 weeks ago because of this. Chris Taylor, 2706 Bayside Drive, noted that the 1977 exclusion was never provided in any staff report or recommendation. He requested confirmation that there is no appeal process after this and believed that Section 11 is not written clearly. He suggested that the City Attorney's memo be amended to add cantilever bridge -type structures to adequately identify the alley extension. He further expressed concern regarding the definition of unusual circumstances. Mr. Taylor noted that he presented a letter regarding findings and conditions not being modified and that they are included in the staff report. Referencing the Shelley Walker letter, he clarified that the neighbors were talking about the intensification that prevents the City from using Municipal Code Section 19.08.50.1) to justify the lot line adjustment. He added that the tax assessor has three tax parcels listed for the properties, not four, that one of the parcels does not have a site address, and that there were no improvements shown on the parcels. He took issue that Council Policy L -2.0 wipes out six other policies. Mr. Taylor confirmed for Mayor Adams that the project does not have a direct affect on his property. Lisa Cushman, 2700 Bayside Drive, stated that she is disappointed that Mr. Welton has not met with the neighbors. She asked how much staff, City Attorney, Planning Commission, and taxpayer time has been spent on these applications which could have been amicably resolved. She believed that the City is being asked to grant parkland to a resident and to remove mature trees that might destabilize the bedrock. She added that the Planning Commission also relied on staff reports that may have erroneous findings and that a complete study has not been conducted. Ms. Cushman reported that they have 35 days to challenge whether an exemption actually exists if the City intends to file for a CEQA exemption or 180 days to challenge it if the City is not going to file an exemption. She believed that this is a topographically inaccessible lot. She also noted that the City spent $1 million to secure the bedrock at Bayside and Fernleaf, but this proposal wants to remove a 60 year old Eucalyptus tree. Harriet Harris, 2706 Bayside Drive, believed that a curb cut similar to the one at 317 Goldenrod could be the solution. She stated that she could not Volume 54 - Page 198 City of Newport Beach City Council Minutes April 10, 2001 INDEX see the alley from her house, but believed she would have a slope stability problem. Ms. Harris confirmed for Council Member Bromberg that she has not resided at the property since October and that it is up for sale right now. Chris Cushman, 2700 Bayside Drive, noted that the project consists of eight dwelling units and that the structure is large and would hang over the alley. He asked what "state of repair" means, how his home is assured against slippage, why he is responsible for maintaining the area, and how his property value is being protected. He expressed concern about the proposed 42 -inch retaining wall because children may climb up it. Mr. Welton expressed the opinion that these concerns have been adequately addressed in the staff report. He took issue with previous statements that he has not been communicating with the neighbors, stating that meetings have been conducted over the past year. He indicated that sometimes two legal parcels are combined on one tax bill and, even though there are three assessor numbers, he has four legal parcels. Planning Director Temple added that this is a common practice and stated that Lot 3 might not have an official address but is a parcel that has been taxed by the assessor. Hearing no further testimony, Mayor Adams closed the public hearing. Mayor Adams stated that it is inappropriate for the City to count on private driveways for the public to use in order to turn around in streets. Mr. Webb stated that there are no places to turn around at the ends of any of the streets but there are red curbs which allow drivers to make three -point turns. Regarding appeals, City Attorney Burnham confirmed that Council decisions on encroachment permits are final and that notices of exemptions are typically filed by the City. In reference to Mr. Cushman's concerns regarding safety, Mayor Adams stated that the City will be erecting a fence that meets the Uniform Building Code height requirements, but there will still be a drop off regardless if the alley was extended 15 feet or not. He stated that having the alley end at a structure instead of a retaining wall is unusual; however, he believed it does not pose any physical difference compared to other City alley terminations. Council Member O'Neil indicated that he is satisfied that the encroachment permit should be issued because the alley extension is appropriate in this case and is consistent with Council Policy L -2 and the California Coastal Commission's policy that prohibits curb cuts and driveways where there is alley access. Further, the barriers at the end of the alley will adequately protect the adjoining properties from cars going through the barrier or children getting hurt by climbing the protective fence. He stated that the applicant hired a geotechnical specialist and that an analysis was conducted, which staff reviewed, on subsidence issues that could occur due to construction. Motion by Council Member O'Neil to approve Encroachment Permit Application No. 2001 -110 subject to: 1) the execution of an Encroachment Agreement providing for the construction of an alley extension that will Volume 54 - Page 199 City of Newport Beach City Council Minutes April 10, 2001 become City property after it is completed and accepted by the City and the Mayor and City Clerk are authorized to execute this agreement. The Encroachment Agreement also requires the owner to maintain the slope, landscaping and fence below the structure; and 2) an Encroachment Permit issued by the Public Works Department. In response to Council Member Heffernan's concerns, Assistant City Attorney Clauson reported that there is no requirement for public noticing for this type of encroachment permit and that Section 9 has indemnification and hold harmless language for the adjoining property owners. Council Member Heffernan believed that this should be broader than just adjoining property owners. Regarding Section 11, Ms. Clauson clarified that it should be amended so that the language reflects that the permit is either recorded prior to any encumbrance or it is subordinated to any existing deed of trust. Council Member O'Neil amended his motion to include the amendment to Section 11. Council Member Heffernan stated that he will be voting against this because there should be alleyway standards since this will continue to come before Council. Further, the encumbrance agreement should better protect the City. Council Member Bromberg stated that he will be supporting this and expressed his disappointment that some of the residents have placed their houses up for sale. He believed that the neighbors' concerns actually deal primarily with money and not the other items they brought forward. The amended motion carried by the following roll call vote: Ayes: O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: Heffernan Abstain: None Absent: Proctor 15. REX BRANDT TRUST FOR AMENDMENT NO. 909 & LOT LINE ADJUSTMENT NO. 2000 -013 (2720 & 2730 BAYSIDE DRIVE) (contd. from 3/27/01). Public Works Director Webb stated that Lot Line Adjustment 2000 -013 deals with the extension of the existing parking area by about 60 to 70 feet. He indicated that the plan has been modified to allow the Eucalyptus tree to remain and to change the proposed retaining wall to a landscaped slope. He noted that Recommendation 3 should be amended to Exhibit 2, rather than Exhibit 6. Planning Director Temple indicated that, since this deals with a lot line adjustment, an ordinance which would amend the districting map, and an encroachment agreement, the Planning Department mailed the notice, posted site notices, and published the notice. Mayor Adams opened the public hearing. Volume 54 - Page 200 INDEX Ord 2001 -3 EPN 2000 -254/ Lot Line Adjustment 2000 -013/ 2720 Bayside Drive and 2730 Bayside Drive (65) City of Newport Beach City Council Minutes April 10, 2001 INDEX Eric Welton, 2960 Bayview Drive, believed that many of the issues have been discussed previously and emphasized that several meetings were conducted in the course of the year. In response to Chris Cushman's questions, Mr. Webb pointed out that state of repair is defined in Section 6 and added that staff recommended that the developer take numerous photographs of the area. He stated that there are a number of cracks currently in the asphalt that are due to aging and are not settlement cracks. He also referenced Section 11A which requires the applicant to be responsible for his pro rata share of the common driveway. Mr. Cushman expressed concern regarding possible slippage due to heavy equipment that will be used on this project and asked how he measures this. In response to Council questions, Mr. Webb reported that the area is a common driveway in the public right -of -way that serves the current units. He stated that the residents provide for its maintenance but that there is no recorded agreement for this. He indicated that the existing property owners do not have an encroachment permit to use the roadway. He reported that Rex Brandt built the common driveway in the early 1960s and turned the three lots around in the late 1960s or early 1970 so that they could also access the common driveway. Lisa Cushman, 2700 Bayside Drive, took issue with the City being indemnified by the property owner (Section 13) and gifting parkland. She requested indemnification and a piece of the parkland for herself. Regarding her neighbors selling their property, she indicated that they have a duty to disclose what is going on, otherwise they are liable to the eventual owners. Council Member Bromberg indicated that Section 13 just says that, if there is a problem, the City will go back to Mr. Welton. Further, the neighbors do not need an indemnity agreement to have a determination if the developer damages their property. Mayor Adams pointed out that Ms. Cushman's parcel received this "gift" long ago and that the City is just affording this property owner the same. He stated that the trade -off for the public is that they will not have a series of driveways severing the park at every parcel. City Attorney Burnham added that any Bayside Drive Park improvement has been done on City right -of way and that it does not own the property in fee. Further, the City has a legal obligation to provide reasonable access from the right -of -way to these parcels. He agreed that this would be a better situation if the three other properties had encroachment permits so that the issue of pro rata maintenance of the access way is addressed. He stated that he is not sure of a way to require the property owners to enter into encroachment permits to confirm the maintenance obligations unless Council adopts a policy to do so. Mr. Burnham emphasized that the access point for the neighbors is actually in a public street/right -of -way. Chris Taylor, 2706 Bayside Drive, believed that the quality of this house would be a benefit to the community if the slope were scaled back. He asked that the lot lines not be changed and the intensity not be added. Further, he believed that the current neighbors are going to be saddled with an obligation that they do not have today and requested that they be sent an encroachment agreement to also receive benefits. Volume 54 - Page 201 City of Newport Beach City Council Minutes April 10, 2001 Hearing no further testimony, Mayor Adams closed the public hearing. Motion by Council Member O'Neil to 1) adopt the findings and conditions of approval for Lot Line Adjustment No. 2000 -013; 2) introduce Ordinance No. 2001 -3 approving Amendment No. 909 establishing a four -foot front yard setback for the subject lots; 3) approve an Encroachment Agreement for the non - standard improvements: a) authorize the Mayor and City Clerk to execute the Agreement; and b) authorize and direct the City Clerk to have the agreement recorded with the Orange County Recorder; and 4) authorize the issuance of an Encroachment Permit by the Public Works Department, subject to approval of all improvements by the Fire, General Services and Public Works Departments. Council Member Heffernan stated that he will be voting against this because the City needs to solve the problem since this will be a contentious situation. The motion carried by the following roll call vote: Ayes: O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: Heffernan Abstain: None Absent: Proctor CURRENT BUSINESS 16. NEWPORT THEATRE ARTS PROPOSED MANAGEMENT AGREEMENT. City Attorney Burnham stated that this agreement is intended to memorialize the manner in which the Friends of the Newport Theater Arts Center has used and managed the property over the last 22 years. He reported that the key conditions of the agreement include a 10 year term with two five -year extensions if there are no notices of non - renewal from either party and that annual extensions will be granted thereafter; requiring the Friends to operate a community theater program from the property with at least four productions open to the public with affordable ticket prices; requiring the Friends to manage third -party use and requiring that they permit the use of the Theater by community, resident, and business groups that own property in the area for meetings and events of limited duration; requiring the Friends to designate three two -week periods so the Theater can be used by other theater groups or individuals who apply for use; and requiring that the Friends maintain and repair the Theater equipment while the City maintains and repairs the Theater and hardscape around the Theater. Mr. Burnham indicated that he did not include a termination clause because there has been a long history of responsible management, has been considerable investment of private funds into the facility, and the community theater requires a lot of planning and operates on a programmed year. He added that this is a type of use that does not lend itself well to a short termination clause, but one can be added. Mayor Pro Tem Ridgeway believed it is a good business practice to have a termination clause in the agreement and emphasized that this has no bearing on the people involved Volume 54 - Page 202 INDEX C -3409 Newport Theater Arts Center/ Council Policy I -6 (38/62) City of Newport Beach City Council Minutes April 10, 2001 INDEX 1' with the agreement. Mr. Burnham noted that there has been no written agreement to this point, that the Friends have been operating under Council Policy I -6, and that one of the recommendations is to direct staff to modify the policy so that it is consistent with the management agreement. Council Member Glover commended the City Attorney for putting this agreement together amongst the other duties he has, particularly his involvement on airport issues. She stated that the people involved with the Theater epitomize class, dignity, and civility; that the Theater has been practicing a craft for over 22 years; and that they have been a good neighbor. Council Member O'Neil pointed out that this agreement allows other performing arts groups to have access to the Theater. Motion by Council Member Glover to authorize the Mayor to execute the Agreement and directed staff to modify Council Policy I -6 to be consistent with the Agreement. Stan Cohen, 1501 Antigua Way, Newport Theater Arts Center Board Member, expressed his appreciation for Mr. Burnham's hard work. He reviewed the history of the Theater and stated that the Friends were given the responsibility of managing the property and conducting a successful community theater program. He indicated that the Theater is one of the most successful and respected community theaters in Southern California, mostly due to the volunteers. He reported that the Theater was one of three theaters invited to perform a one -act presentation during the 1984 Olympics and that Beverly Hills even asked the Theater how to get a community theater started. He indicated that the Theater usually conducts a comedy, drama, mystery, musical, and children's production during the year. Mr. Cohen stated that the Theater was able to raise over $185,000 to improve the facility; that it has a very loyal audience; and that the price of the tickets are always $13. He believed that, by approving the agreement, Council will ensure that this quality effort continues for a long time to come. Regarding insurance, Mr. Cohen confirmed for Council Member Heffernan that the Friends have provided insurance in the past but that this is an issue that will need to be reexamined in light of the defined responsibilities. He stated that the City's Risk Manager indicated that there should not be a problem in including the Friends as a named insured on the City's policy. Sally Welsh stated that she is a season ticket holder of 48 seats and recommended that everyone go to the Theater. She indicated that her and her husband never have to worry about the content of the plays and noted that they even have special performances for children. Following discussion, Council Member Glover amended the motion to require that the Friends of the Newport Theater Arts Center provide $2 million liability insurance. The amended motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Volume 54 - Page 203 City of Newport Beach City Council Minutes April 10, 2001 Abstain: None Absent: Proctor Mayor Adams recessed the meeting at 9:40 p.m. and reconvened the meeting at 9:50 p.m. 17. TRANSFER OF CONTROL OF PACIFIC COAST HIGHWAY IN CORONA DEL MAR FROM CALTRANS TO CITY OF NEWPORT BEACH. City Manager Bludau stated that Council received a presentation during the study session relative to the Vision 2004 Plan which involves major improvements to Pacific Coast Highway (PCH). He reported that, since the improvements are a significant departure from CalTrans standards and they would not approve them, the relinquishment of a portion of PCH from Avocado Avenue to Seaward Drive is important to the success of the Vision 2004 Plan. He indicated that Council directed the Corona del Mar Business Improvement District (BID) to work with staff and CalTrans to determine the maintenance costs, risks, and liabilities; determine the feasibility of the relinquishment; and talk about a state of repair settlement. Further, Council directed them to reserve the right of the legislator to sponsor legislation to accomplish the relinquishment. He emphasized that adopting the resolution is the first formal step in the process. Mr. Bludau reviewed the staff report, reporting that the improvements would cost about $12 million but the BID hopes not to depend on the City for major funding of the improvements. He reported that the new maintenance costs will increase from about $23,663 ($10,000 is reimbursable) to about $155,863 with the relinquishment, and about $249,300 with the Vision 2004 Plan. He highlighted traffic, traffic enforcement, liability, and staff impacts. He indicated that relinquishment may ultimately enhance pedestrian safety, strengthen the sense of a "village" atmosphere, increase the area's attractiveness, allow the City to process the right -of -way applications, and enhance sales tax generation. In response to Council Member Heffernan's questions, Public Works Director Webb stated that, to the best of his knowledge, the only City that is actively pursuing a relinquishment is Dana Point and that this has never been accomplished before. Mr. Bludau indicated that traffic is not going to be diverted during the improvements, but lanes may occasionally be closed. Council Member O'Neil emphasized that this is the first step and noted that this proposal is supported by the businesses along PCH and the Corona del Mar Residents Association which represents all the associations in the area. Motion by Council Member O'Neil to adopt Resolution No. 2001 -21 requesting that the California Transportation Commission support relinquishment of a portion of State Highway Route 1 from Seaward Drive to Avocado Avenue. Ed Selich, Planning Commissioner, representing the BID, stated that the BID is trying to come up with ways to deal with construction traffic and possibly phasing the project. He indicated that they are not sure how much money they will get from CalTrans, but they have identified State and Federal programs, some of which involve matching funds. He stated that Volume 54 - Page 204 INDEX Res 2001.21 Pacific Coast Highway/ CalTrans (74) City of Newport Beach City Council Minutes April 10, 2001 they believe that they could raise the entire $12 million, especially if the project is phased. Don Glasgow, Corona del Mar Business Improvement District, stated that the supporters have worked very hard over the years and that people can learn more about the Vision 2004 Plan through the cdmvillage.com website. John Blom stated that he started his business in Corona del Mar because of its charm and appeal, but had a dream of what the area could become. He stated that the BID wants to improve the business district by making it more pedestrian- friendly and beautifying the overall look. He emphasized that Vision 2004 will last for generations. Wade Roberts, 606 Dahlia, Director of Activities at Sherman Gardens, expressed his enthusiasm for having a park run through town and noted that there is nothing like it in California. Ron Baers, 1911 E. Balboa Boulevard, stated that the City is made up of a series of villages and that people are trying to find ways to revitalize and make them better. He indicated that, with this proposal, people are trying to knit the area together to continue to make it a gathering place for the City. Scott Palmer, 2816 E. Coast Highway, reviewed the history of the area and stated that this is a plan that would create an amazing environment for the future. He emphasized that the BID cannot begin until Council votes for the relinquishment of PCH. Jennifer Cowen, 18952 MacArthur Boulevard, #220, stated that she is speaking on behalf of Assemblyman John Campbell and that he supports the Vision 2004 Plan. She indicated that Assemblyman Campbell will be an activist for this at the State level and that he and his staff will also try to work with the State agencies to make this a reality. B.J. Johnson stated that it is nice that, since she lives and works in the area, she does not have to get on any major thoroughfares and believed that, as this progresses, more and more people will improve their businesses. Bill Sinclair stated that he relocated from Washington D.C. to Corona del Mar because of the area's quality of life and expressed his support for this. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Proctor 18. RECOMMENDATIONS FROM GENERAL PLAN UPDATE COMMITTEE ON COMMUNITY OUTREACH "VISIONING" PROCESS, COMPOSITION OF GENERAL PLAN ADVISORY COMMITTEE, AND CONSULTANT SELECTION. S19. GENERAL PLAN VISIONING PROCESS BUDGET AMENDMENT. Volume 54 - Page 205 C- 3410 /BA -042 Res 2001 -22 General Plan Update/ "Visioning" Process/ General Plan Advisory Committee City of Newport Beach City Council Minutes April 10, 2001 City Manager Bludau indicated that the General Plan Update Committee's assignment was to determine whether a General Plan Update was needed and, if so, whether it would be a comprehensive or limited update. They were also directed to look into a public outreach program and make a recommendation as to how the outreach would be accomplished. He further reviewed the visioning process as outlined in the staff report. He indicated that the Committee has been working with Carolyn Verheyen of Moore Iacofano Goltsman, Inc. (MIG) and that they believe that her future participation in this process would be invaluable since her firm has expertise in public outreach processes. He reported that the Committee feels that a key component for citizen involvement would be to establish a General Plan Advisory Committee which would be composed of 32 to 37 citizens, representing all segments of the community. He noted that Agenda Item No. S19 is for the approval of a budget amendment which was not included with Item 18. Mr. Bludau stated that staff and the Committee will prepare and circulate Requests for Qualifications (RFQs) for the preparation of the General Plan Update and traffic, noise, air quality, geotechnical, water quality, fire hazard, economic, and fiscal impact studies. He added that the Committee feels it is very important to get the traffic, economical, and fiscal studies underway as soon as possible and is proposing to bring all the General Plan Elements up to date. In response to Council Member Heffernan's question regarding the cost of the project over a two year period, Mr. Bludau clarified that it would cost about $85,000 for staff time; $30,000 for direct costs; $221,500 for MIG which will come from unallocated reserves; $200,000 for the technical studies; and $500,000 for the environmental report. He noted that the $500,000 will not be budgeted for the next budget year. Allan Beek, 2007 Highland, expressed concern that the City has not started the traffic studies needed to make decisions about its future. He indicated that people need to know what overpasses and underpasses will be needed to avoid future congestion and how bad traffic will be if they are not built. He stated that he does not support Recommendations 1 and 2 since the contract should not be considered until the necessary data is in hand. He added that the residents have not even been asked whether they want to annex the land between here and Laguna, believing that most of them have no interest in the Bay or beach, and probably do not support an airport at El Toro. He stated that, if the City wants to learn the temper of the community, it needs to ask questions regarding congestion, annexations, and mansions. He expressed the opinion that the proposal tonight is a waste of money. Mayor Adams stated that he chairs the Committee and that they came to consensus about the programs before Council tonight. He added that the program also kicks off many studies, including the traffic study. He pointed out that the City is moving forward with annexation because the current General Plan and City Policy directs them to do so. He indicated that the visioning process will ask appropriate questions and that the citizens committee will be formulating the questions. Motion by Council Member Glover to 1) approve the Visioning Process and authorize the City Manager to execute an agreement with Moore Volume 54 - Page 206 INDEX (24/38/40/68) City of Newport Beach City Council Minutes April 10, 2001 Iacofano Goltsman, Inc. for an amount not to exceed $221,500; 2) approve a budget amendment (BA -042) in the amount of $221,500 from General Fund Unappropriated Surplus to Account 2710 -8080 for a contract with Moore Iacofano Goltsman, Inc. for a Community Outreach "Visioning" process for the General Plan Update; 3) adopt Resolution No. 2001 -22 establishing a General Plan Advisory Committee; and 4) direct staff and the General Plan Update Committee to prepare and circulate Requests for Qualifications (RFQs) for certain technical studies and preparation of the General Plan Update. Council Member Heffernan stated that he agrees with Mr. Beek that this is a general outreach approach and expressed the opinion that the necessary technical information is not in place to formulate the questions. The motion carried by the following roll call vote: Ayes: O'Neil, Ridgeway, Glover, Bromberg, Mayor Adams Noes: Heffernan Abstain: None Absent: Proctor MOTION FOR RECONSIDERATION — None. ADJOURNMENT — 10:40 p.m. The agenda for the Regular Meeting was posted on April 4, 2001, at 3:00 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 April 6, 2001, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Q. LB"Wv�/ Recording Secretary .W-- tam, Mayor Volume 54 - Page 207 INDEX