HomeMy WebLinkAbout06/26/2012 - Regular MeetingCity Council Minutes
Regular Meeting
June 26, 2012 — 7:00 p.m.'
I. STUDY SESSION - 4:00 p.m.
II. CLOSED SESSION - 5:45 p.m.
A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6)
Agency Designated Representatives: Dave Kiff, City Manager and Negotiator
Employee Organizations: All Labor Associations: Association of Newport Beach Ocean
Lifeguards (ANBOL); Lifeguard Management Association (LMA); Newport Beach Fire Management
Association (NBFMA); Newport Beach Firefighters' Association (NBFA); Police Management
Association (PMA); Police Employees' Association (PEA); City Employees Association (NBCEA);
Newport Beach Professional & Technical Employees Association (NBPTEA); Newport Beach
Employees League (NBEL); Newport Beach Part -Time Unit (UPEC, Local 777)
III. RECESS
IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
V. ROLL CALL
Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn
Excused: Council Member Daigle
VI. CLOSED SESSION REPORT - City Attorney Harp reported that there was no reportable action
taken
VII. PLEDGE OF ALLEGIANCE - Council Member Daigle
VIII. INVOCATION - Pastor Karl Stuckenburg, Newport Center United Methodist Chutch
DI. PRESENTATIONS - None
X. NOTICE TO THE PUBLIC
XI. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD
LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON
DISCUSSION ITEM)
Mayor Pro Tem Curry reported that he participated in the closing ceremonies of the recent Relay for Life
Volume 60 - Page 495
City of Newport Beach
City Council Minutes
June 26, 2012
in which he presented Mayor Gardner with a plaque recognizing the City's contribution to the event. In
addition, he reported participating in an Art in the Park event and the opening of a new exhibit at the
Orange County Museum of Art as well as a meeting of the Orange County Chapter of the Chinese
Chamber of Commerce. He also reported that he attended the Australian Counsel General's home in Los
Angeles to participate in a collaboration of Griffith University in Australia and Children's Hospital.
Council Member Daigle addressed a ruling of the U.S. Supreme Court for California to ease overcrowding
in State prisons and referenced AB109. She noted that impacts of AB109 are being felt on the local level,
reported that she spoke with Police Chief Johnson who has agreed to provide a presentation to Council on
the matter, and commented positively on the Bristol Street landscaping project and the construction of
Jamboree Bridge.
Council Member Henn commented positively on the Coastal Commission's approval of Marina Park,
reported that he attended a conference on June 22, 2012 on the use of technology in Government which
was sponsored by the Center for Public Policy at Concordia, announced upcoming "Irrelevant Week"
events, reported that he attended the Great Park Foundation Annual Dinner, and announced that there
will be a Neighborhood Revitalization Committee meeting on June 28, 2012, at 4:00 p.m. in Council
Chambers.
Council Member Selich requested that staff add the initiation of an amendment to the Coastal Land Use
Plan on the next Council agenda to allow the tower on the Marina Park project, reported that the Newport
Dunes Waterfront Resort and Marina will be hosting an inaugural Independence Day on the Bay on July
4, 2012 which will feature a Bangle's concert and a fireworks display, and thanked the community and
local businesses for supporting the event.
Mayor Gardner reported that as part of the revitalization efforts of Corona del Mar, focus was on the entry
at MacArthur and Pacific Coast Highway and noted that the area will be restriped in order to perform a
live test. Public Works Director Badum added that there will be stripes, stick -down cones, markers, and
signage added to the area.
Mayor Gardner reported that she met with the Coastal Commission staff after thew meeting and thanked
the Commissioners for approving Marina Park. She noted that she spoke with the new Executive Director
about the Coastal Commission being understaffed and underfunded, stated that she assured him that the
City is currently working on its Local Coastal Program (LCP), and announced a 4th of July event on the
Balboa Peninsula where she and other Council Members will be participating in the dunk tank.
XII. CONSENT CALENDAR
A. READING OF MINUTES /ORDINANCES AND RESOLUTIONS
1. MINUTES FOR THE JUNE 12, 2012 REGULAR MEETING. [100 -2012] Waive reading
of subject minutes, approve as written, and order filed.
2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all
ordinances and resolutions under consideration, and direct the City Clerk to read by title
only.
B. ORDINANCE FOR ADOPTION
3. AN ORDINANCE ESTABLISHING AN ADMINISTRATIVE CODE ENFORCEMENT
PROGRAM, NEWPORT BEACH MUNICIPAL CODE CHAPTER 1.05 AND SECTIONS
1.04.010, 10.66.060 AND 10.66.070. [100 -2012] Conduct second reading and adopt
Volume 60 - Page 496
City of Newport Beach
City Council Minutes
June 26, 2012
Ordinance No. 2012 -13, amending NBMC Chapter 1.05 to establish an Administrative Code
Enforcement Program; Section 1.04.010 to add Civil Penalties; and Sections 10.66.060 and
10.66.070 to align the administrative appeals process.
C. CONTRACTS AND AGREEMENTS
4. COOPERATIVE AGREEMENT TO IMPLEMENT TOTAL MAXIMUM DAILY LOAD
(TMDL) PROGRAMS FOR NUTRIENTS, FECAL COLI FORM BACTERIA AND
TOXICS IN THE NEWPORT BAY WATERSHED (C- 5164). [381100 -20121 Authorize the
Mayor and the City Clerk to execute Cooperative Agreement Dll -066 to fund the TMDL
programs, studies and monitoring for the Newport Bay Watershed.
7. SERVICE AGREEMENT WITH RCS INVESTIGATIONS AND CONSULTING, LLC,
FOR PRE - EMPLOYMENT BACKGROUND INVESTIGATION SERVICES (C- 5165).
[381100 -2012] Approve and execute the Service Agreement with RCS Investigations and
Consulting, LLC, for background investigation services, at a not -to- exceed cost of $450,000
during the term of the agreement.
D. MISCELLANEOUS
9. PLANNING COMMISSION AGENDA FOR JUNE 21, 2012. [100 -20121 Receive and file.
10. CITY INSURANCE RENEWALS - JULY 1, 2012 - JUNE 30, 2013. [100 -20121 Approve
renewal of the following insurances: excess general liability, excess workers compensation
and property insurance coverage for an amount not to exceed $1,489,322 in total premium
from the Insurance Reserve Funds. The term of the renewal is for a twelve (12) month policy
period, July 1, 2012 through June 30, 2013.
11. IT HARDWARE REPLACEMENT FOR CITY HALL AND POLICE DEPARTMENT
DATA CENTERS. a) Approve Budget Amendment 12BA -041 appropriating $547,499.45
from the IT Strategic Fund Balance to the Data Center Hardware Account, 6420 -9322, for the
purchase of the City Hall and Police Department Data Centers; and h) authorize the City
Manager to execute the contract with Dell for a total amount of $547,499.45 in a form
reviewed and approved by the City Attorney. To authorize the City Manager to enter
into an agreement with Dell for the purchase of the equipment in the amount set
forth in the staff report, subject to the review of the City Attorney's office of the
agreement.
12. AMENDMENT TO COUNCIL POLICY B -17 -DONATION MAINTENANCE FEE. [100-
2012] Municipal Operations staff recommends that the City Council consider the
recommendation from the Parks, Beaches, and Recreation (PB &R) Commission, and approve
a change in Council Policy B -17 to include a maintenance fee for donated items.
City Attorney Harp reported staff would like to add to the recommendation of Item No. 11 (IT Hardware
Replacement for City Hall and Police Department Data Centers), to authorize the City Manager to enter
into an agreement with Dell for the purchase of the equipment in the amount set forth in the staff report,
subject to the review of the City Attorney's office of the agreement.
Motion by Mayor Pro Tern Curry, seconded by Council Member Rosansky to approve the Consent
Calendar, except the items removed (5, 6, 8, and 13) and noting the amended recommendation for Item 11.
Volume 60 - Page 497
City of Newport Beach
City Council Minutes
June 26, 2012
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council
Member Sehch, Council Member Henn, Council Member Daigle
XIII. ITEMS REMOVED FROM THE CONSENT CALENDAR
5. REQUEST TO RETAIN PRIVATE IMPROVEMENTS IN THE PUBLIC RIGHT -OF -WAY AT
1539 SYLVIA LANE. [100 -20121
Dan Purcell presented a picture of the subject property, expressed concern about sidewalks and
pedestrian safety, and asked that Council consider the inclusion of sidewalks in future projects.
Motion by Council Member Hill, seconded by Mayor Pro Tem Curry to waive Council Policy
L -6, Private Encroachments in the Public Rights -o£ -Way, to allow the existing brick mailbox pilaster
and wooden picket fence, all of which encroach in excess of one -foot into the Sylvia Lane and Beryl
Lane public rights -of -way, provided the property owners enter into an Encroachment Agreement
with the City to maintain these private improvements within the public rights -of -way and that all
conditions of the Encroachment Permit process are met, and authorize the City Manager to execute
the Encroachment Agreement.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
6. NEWPORT BEACH CIVIC CENTER AND PARK PROJECT - APPROVE PURCHASE OF
CIVIC CENTER FF &E (MILLWORK, SYSTEMS FURNITURE, AND ANCILLARY
FURNITURE) (C- 4527). 1381100 -20121
In response to Council Member Henn's question, Public Works Director Badum reported that the
differences in the bids for systems furniture were approximately 20 %, noted that there was a
consensus by staff that the chosen vendor was the highest level of quality for the price, provided
details of the millwork needed, and noted that Montbleau and Associates was the lowest,
responsible bidder.
Council Member Selich stated that he had an opportunity to look at the products being proposed and
commented on the process.
Council Member Hill stated that he picked out some of the items and commented on the fairness of
the prices proposed.
Jim Mosher commented on the process noting that the City Charter has a buy local clause in it and
inquired regarding the definition of a monitor arm.
City Attorney Harp reported that the purchase can be approved but noted the need to slightly
modify the agreements to address phasing, installation, and other issues.
Public Works Director Badum provided a description of a computer monitor arm.
Motion by Council Member Selich, seconded by Council Member Hill to a) approve the
purchase of millwork furniture from Montbleau and Associates, Inc. for a not -to- exceed price of
$642,590.00; purchase of systems furniture from Interior Office Solutions, Inc. (IOS) for a not -to-
exceed price of $895,500.00; and purchase of ancillary furniture from Pivot Interiors, Inc. for a not-
Volume 60 - Page 498
City of Newport Beach
City Council Minutes
June 26, 2012
to- exceed price of $1,083,491.65 (the total cost for these purchases is $2,624,581.65, including
applicable sales tax), and authorize the City Manager to execute purchase agreements with
Montbleau and Associates, IOS and Pivot Interiors, Inc. in a form reviewed and approved by the
City Attorney; b) establish a budget of approximately 5% of the FF &E total agreements
($130,418.35) as FF &E contingency for unforeseen costs, and authorize the City Manager to execute
amendments as needed to complete the project; and c) approve Budget Amendment No. 12BA -040
appropriating $2,755,000 from the FY 2013 Major Facilities fund balance reserves to Account No.
7410- CIO02033 to fund the purchase of millwork, systems furniture and ancillary furniture.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
8. APPROVAL OF NEW LEASE TEMPLATE FOR BEACON BAY. [100 -2012]
Jim Mosher commented on policy matters such as the percentage of fair rent, using general CPI to
adjust the rent, allowing subleasing, whether purchasing a property in a dilapidated state should
entitle the buyer to a lower rent, and the impacts to future Council decisions by staggering the 50-
year leases. He addressed issues with public access and signage and stated that he believed that the
City could provide public access regarding Item No. 13 (One Beacon Bay: Authorization to execute
lease restriction).
Motion by Coun.,il Member Selich, seconded by Mayor Pro Tem Curry to approve the new
lease template for Beacon Bay and authorize the City Manager or his /her designee to enter into the
new leases with current and future lessees on behalf of the City of Newport Beach.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
13. ONE BEACON BAY: AUTHORIZATION TO EXECUTE LEASE RESTRICTION. [100 -2012]
Mayor Gardner expressed concern that by agreeing to some of the restrictions, a precedent is being
set and stated that if it is a policy of the Coastal Commission, it should be a policy discussed at State
level. She specifically addressed restrictions regarding a sea wall, what materials can be planted,
and noted that planting materials will not impact water quality on the bay.
Council Member Selich agreed with Mayor Gardner and reported that no discussion occurred on the
item at the Coastal Commission as it was on their Consent Calendar and believed that it should not
be approved. He stated that the applicant should return to the Coastal Commission to get the
conditions amended.
Council Member Henn expressed concern that the Coastal Commission told the owner that they
cannot install any protective devices and that they must indemnify the Coastal Commission in case
they experience damage or destruction on their property. He indicated that the matter needs to have
further consideration before a decision can be made.
City Attorney Harp stated that it may be appropriate to work with the owner and the Coastal
Commission to resolve the matter.
Scott Cunningham, lease owner, noted that he did not seek help from the City, indicated that the
process was a long and tiring experience, stated that the Coastal Commission made it clear that the
conditions are the same as with other residents, addressed signage requirements, noted the
Volume 60 - Page 499
City of Newport Beach
City Council Minutes
June 26, 2012
condition regarding the sea wall, added that the elevation of his first floor is eleven feet, and
encouraged Council to approve the item noting that he is ready to proceed with the project.
City Manager Yiff indicated that this would be one of the unique instances where the City would be
asked to sign off on the project because the City is the landowner.
Council discussed reviewing existing files regarding other Beacon Bay properties to determine
precedents and the possibility of delaying the issue until later in the meeting to obtain additional
information.
Scott Cunningham noted that the condition regarding the sea wall doesn't mean that one cannot be
built in the future, but that if so, a permit would be needed.
XIV. PUBLIC COMMENTS
Sheila Pfafflin expressed opposition to a recent action by the Planning Commission regarding approval of
the EIR for the proposed Banning Ranch Development, addressed issues raised by residents, and urged
Council to become familiar with all aspects of the matter. Jim Mosher commented on a recent article in
the 'Daily Pilot" regarding the City of Costa Mesa readability of their compensation reports and believed
that the City should rise to the same standards.
XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES
Council Member Daigle reported on a recent meeting of the Citizens' Aviation Committee noting that the
City has been negotiating an extension of the settlement agreement with John Wayne Airport which is due
to expire in 2015 and reported that the reason it is not being negotiated in public is because it is a
settlement to litigation. She also reported that Vector Control has affirmed that there has been a case of
the West vile Virus in Anaheim, addressed transmission of the disease, encouraged residents to contact
them if any dead buds are observed, and listed ways to avoid being bitten by mosquitoes.
Council Member Henn reported that on June 14, 2012, the Neighborhood Revitalization Committee
considered the recommendations of the Balboa Village Citizens' Advisory Panel for the revitalization of
Balboa Village and reported that further consideration will occur on June 28, 2012. In addition, he
reported that on June 20, 2012, the Tidelands Management Committee considered the Tidelands
Infrastructure Management Plan and a presentation was given by the Harbor Commission on dredging.
Council Member Rosansky reported that the Charter Update Committee is continuing with its goal of
producing a document to be presented to Council and placed on the November ballot.
XVI. PUBLIC HEARINGS
14. RESOLUTION NO. 2012 -48: RENEWAL OF THE MARINE AVENUE BUSINESS
IMPROVEMENT DISTRICT (BID) FOR FISCAL YEAR 2012 -2013.
Mayor Gardner opened the public hearing.
Jim Mosher discussed Business Improvement Districts (BID's) versus Business Improvement Areas
and the need to assign advisory Boards.
Hearing no further testimony, Mayor Gardner closed public hearing.
Motion by Mavor Pro Tem Curry, seconded by Council Member Rosanskv to a) adopt
Resolution No. 2012 -48 confirming the levy assessment for the Marine Avenue BID for Fiscal Year
2012 -13 since protests represented less than 50 percent of the total assessment amount.
Volume 60 - Page 500
City of Newport Beach
City Council Minutes
June 26, 2012
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
15. RESOLUTION NO. 2012 -49: RENEWAL OF THE BALBOA VILLAGE BUSINESS
IMPROVEMENT DISTRICT (BID) FOR FISCAL YEAR 2012 -2013. [100 -20121
Mayor Gardner opened the public hearing.
Jim Mosher commented on the previous name of the BID, noted that Members of the Board must be
qualified electors of the City, and stated that one of the candidates is not a resident of Newport
Beach.
Hearing no further testimony, Mayor Gardner closed public hearing.
City Attorney Harp noted that appointments for BID Boards are made pursuant to the Streets and
Highways Code.
Motion by Mayor Pro Tern Curry, seconded by Council Member Rosansky to a) adopt
Resolution No. 2012 -49 confirming the levy assessment for the Balboa Village BID for Fiscal Year
2012 -13 since protests represented less than 50 percent of the total assessment amount; and b)
appoint the following to the Balboa Village BID Advisory Board: Craig Batley - Burr White /Balboa
Realty, Ralph Rodheim - Balboa Boat Rentals, Rita Stenlund - ExplorOcean, Patrick Moore - Fun
Zone Rides, Mike Thompson - Davey's Locker
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
16. RESOLUTION NO. 2012 -50: RENEWAL OF THE CORONA DEL MAR BUSINESS
IMPROVEMENT DISTRICT (BID) FOR FISCAL YEAR 2012 -2013. [100120121
Hearing no testimony, Mayor Gardner closed public hearing.
Motion by Mayor Pro Tern Curry, seconded by Council Member Rosansky to a) adopt
Resolution No. 2012 -50 confirming the levy assessment for the Corona del Mar BID for Fiscal Year
2012 -13 since the protests represented less than 50 percent of the total assessment amount.
17. RESOLUTION NO. 2012 -51: RENEWAL OF THE NEWPORT BEACH RESTAURANT
ASSOCIATION BUSINESS IMPROVEMENT DISTRICT (BID) FOR FISCAL YEAR 2012-
2013. [100 -20121
Mayor Gardner opened the public hearing.
Dan Purcell expressed concern that the City is in the alcohol and liquor business and indicated that
he worries about alcohol and drug fueled vehicle crashes in the City.
Jim Mosher wondered about the need for the Restaurant Association BID and believed that the City
should not be supporting it.
Hearing no further testimony, Mayor Gardner closed public hearing.
Motion by Council Member Hill, seconded by Council Member Rosansky to adopt
Resolution No. 2012 -51 confirming the levy assessment for the Newport Beach Restaurant
Volume 60 - Page 501
City of Newport Beach
City Council Minutes
June 26, 2012
Association BID for Fiscal Year 2012 -13 since protests represented less than 50 percent of the total
assessment amount.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
18. APPEAL OF DENIAL OF LOT MERGER NO. LM2011 -002 TO MERGE 2808 AND 2812
OCEAN BOULEVARD (PA2011 -141). [100 -2012]
Community Development Director Brandt introduced the item, noting the various hearings and
deliberations regarding the matter as well as recent activity on the property.
Assistant Planner Sims presented an overview of the project, addressing location, brief history of
actions taken to date, and receipt of a revised restricted covenant proposed by the applicant. She
presented a comparison of the applicant's restrictions and Planning Commission restrictions.
Discussion ensued regarding the flat roof and the applicant's proposal to limit the height, the
percentage of development at that height, and the details of the applicant's revised proposal.
In response to Council Member Henn's question regarding whether the restriction complies with the
Planning Commission recommendations to lower the roof line by three -feet, staff noted that the
building would be three different heights but that the current proposal allows for the roof line to be
lowered by 1% feet.
Assistant Planner Sims indicated that there is a correction to an error in the Statement of Facts in
the resolution and referenced a handout relative to a change in the Floor Area Ratio (FAR) proposed
by the applicant. Community Development Director Brandt added that the City also received
correspondence from various parties, including the Juaneiio Band of Mission Indians, who requested
to monitor the grading.
In response to Mayor Pro Tern Curry's question, Community Development Director Brandt noted
that no evidence was presented regarding the Juaneiio Band of Mission Indians claim. She stated
that there is a General Plan policy regarding the matter and noted a Condition of Approval
requiring monitoring during the grading activity can be added. It was noted that it is not a
requirement, but rather a recommendation.
Council Member Rosansky noted that apparently the neighbors have not come to an agreement and
stated he is willing to support the application.
Mayor Gardner commented on a letter from an attorney received just prior to the meeting and
expressed frustration with items being turned in at the last minute. She requested clarification
regarding the roof railing and arbitrarily changing the established grade.
Community Development Director Brandt stated that the Zoning Code is not being changed but that
the applicant is voluntarily submitting a self- restrictive covenant.
Mayor Gardner questioned a statement that disagrees with staffs environmental analysis. Further,
she discussed height, the lot merger, and curb cuts on Ocean Boulevard. She pointed out that if the
lot merger is not approved, there is still a possibility for the property owner to make curb cuts.
Council Member Henn addressed the letter from Stephen Miles, Miles Law Group. City Attorney
Harp noted that Mr. Miles raises several issues regarding the demolition of the two properties and
Volume 60 - Page 502
City of Newport Beach
City Council Minutes
June 26, 2012
alleges that was in violation of the City's Municipal Code. He reported that demolition was done
under a valid permit that was renewed by the applicant. He referenced a case in Palo Alto
indicating that demolition permits are ministerial and not subject to CEQA analysis. When
considering this item, he indicated the importance of viewing demolition as a separate item that was
appropriate under the law. Additionally, arguments are raised that the lot merger is inconsistent
with the Coastal Land Use Plan (CLUP). Regarding the allegation that the project is in violation of
CEQA, staff has done extensive analysis and noted that categorical exemptions are appropriate in
this case and that there is no significant impact to the environment. Regarding the allegation that
the item violates the Brown Act, City Attorney Harp stated that the agenda item adequately covered
what is being considered tonight. He indicated that he sees no legal impediment for Council to take
action tonight on this item and noted that the attachments cited in Mr. Miles's letter were not
received and are not part of the record.
Mayor Gardner opened the public hearing.
Cora Lee Newman, Principal with Government Solutions and representing the applicant (John
Guida), noted the attendance of the applicant's professional team and indicated that they have
reviewed all the materials in the report. She requested approval of the lot merger based on the
findings in the staff report and added that the applicant will completely comply with all of the
restrictions set forth in the resolution. She reported meeting with the community and addressed the
modifications made by the applicant to comply with the Planning Commission recommendations.
She believed that Council's requests from the last meeting were met and noted agreement with all of
the Planning Commission's recommendations. She indicated agreement that all roof railings would
be transparent. She further listed all actions taken to resolve the issues and urged Council to
approve the item.
In response to Council Member Hill's question, Ms. Newman reported that in trying to get to the
intent of reducing the house by three -feet, the grade was reduced by 19. feet and the height of the
house by 1 '/z feet.
Discussion followed regarding the proposed height of the house versus the Planning Commission
requirements, and methods of determining the height. It was noted that if the roof is ridged, a
height of 29 feet is allowed. However, if the roof is flat, the allowable height would be 24 feet.
Council Member Rosansky pointed out that the roof adjustment was not according to the Planning
Commission recommendations but rather according to the discussions from the last Council
meeting.
Council Member Daigle noted that the application is for a lot merger and inquired regarding
allegations that the proposal is not consistent with the existing pattern of the area. City Attorney
Harp agreed that consideration should be given to whether it is consistent with surrounding
properties; however, it is up to Council to determine if that criterion is met.
Community Development Director Brandt reported that staff has provided information in
justification of the findings and offered to provide support for the analysis. Senior Planner Ramirez
presented a map illustrating the larger lots in the area and showing a representation of the lots that
have been formally merged into larger lots. It was further noted that the Zoning Administrator
indicated that the findings could be made based on several factors, including how the lots vary in
size, with no set development pattern along Ocean Boulevard.
Council Member Rosansky indicated that from the front of the lot, it is not much wider than many of
the existing lots. He noted that there are many big homes in the area that are on smaller lots.
Council Member Daigle noted that lot width is a criteria along a subdivision pattern.
Mayor Gardner noted that part of the proposed project is underground.
Volume 60 - Page 503
City of Newport Beach
City Council Minutes
June 26, 2012
Cliff Jones noted that the issue is about a lot merger. He addressed the review by the Planning
Commission and believed that the project should not be approved since it is inconsistent with the
surrounding pattern of development and is an anomaly.
Mayor Pro Tern Curry inquired regarding concessions made by neighbors in the negotiations. Mr.
Jones addressed the deed restrictions and reported that the applicant was provided with dimensions
but did not agree with them.
Jeff Dufine reiterated that the matter is about a lot merger, expressed concern with setting a
precedent, spoke in opposition to the project, and urged Council to deny the project.
Council Member Selich noted the importance of how the lot is perceived and reported that the street
frontage of the proposed lot merger is substantially less than other nearby lots.
Alberta Silva spoke in opposition of the merger and encouraged Council to vote for denial. She
addressed detriment to health, peace and comfort, loss of property value, and incompatibility with
surrounding homes.
City Attorney Harp pointed out that the term surrounding means more than just the adjacent lots.
Stephen Miles, Miles Law Group, addressed the timing for submitting his material, took issue with
relying on a categorical exemption for a lot merger, and alleged that there was no related CEQA
analysis. He believed that there were other components of the project that were ignored, including
the historical aspects of the buildings. He addressed the project's square footage and referenced the
CLUP that indicates the number of allowable dwelling units per acre. He expressed the opinion
that the proposed iot merger will violate the Land Use Plan and that the City cannot make a finding
of consistency with the CLUP and the General Plan. He presented an example of a comparable lot
merger case that was denied, took exception to the statement that a demolition permit is
ministerial, and addressed the basis for noting that the Brown Act was violated.
In response to Mr. Miles' allegations regarding the historical aspects of the demolished buildings,
City Attorney Harp stated that Council will be considering the project as it exists today for purposes
of CEQA. He noted that the property owner legally had the right to demolish the buildings.
Community Development Director Brandt stated the importance of remembering that the General
Plan sets the overall development parameters for the communities which are further implemented
by the Zoning Code. She noted that the Zoning Code sets a minimum lot size for a property and not
a maximum lot size. She also addressed the density range for the area as stated in the CLUP and
read into the record Section 2.0 Land Use Element of the Coastal Land Use Plan in relation to the
General Plan.
John Cummings believed that the subject block is a hodge -podge and spoke in support of the lot
merger. He presented pictures with examples of other lot mergers within the City.
Danny Daneshmand spoke on behalf of his daughter who owns property on Ocean Boulevard. He
stated that the lot merger will affect the value of surrounding properties and took issue with the
demolition of the buildings since they might have had historical value. He addressed the proposed
height and urged Council to deny the project.
Mark Todd, representing Mr. Guida, the applicant, stated that if there had been historical value to
the property, the previous owner would have raised the selling price. He noted surrounding large
lots and addressed setbacks, believing that the project would improve the view to other houses. He
also discussed compromises made by Mr. Guida. He further pointed out that the deed restrictions
Volume 60 - Page 504
City of Newport Beach
City Council Minutes
June 26, 2012
do not negate a lot merger
Peter Campbell stated that his parents live adjacent to the project. He addressed his parents'
health and noted that he is one of their principal caregivers. He stated that this has been very
distressing for them and encouraged Council to deny the lot merger.
Linda Jones reported that their lot was never merged.
Ruth Alter, Owner and Principal of Archeos, listed her experience and qualifications as a historical
resources consultant, and presented her opinions regarding the buildings that existed on the subject
property. She addressed post and beam construction used in one of the buildings, and expressed her
disappointment that the buildings were demolished.
Dan Purcell encouraged the maintenance of decorum.
Jim Mosher addressed the density issue and zoning for the property. He expressed concerns with
reducing public access to the coastal environment.
Andrew Patterson noted the importance of being good neighbors and indicated support for the
project.
Cora Lee Newman noted the actions taken by the applicant to comply with Council's May 8
directions and reported that the item is not only about the lot merger, but has continuously been
about the height of the house.
There being no further testimony, Mayor Gardner closed the public hearing.
Council Member Rosansky reiterated his support for the lot merger.
Regarding the Juaneno Band of Mission Indians' condition relative to monitoring the grading of the
property, Ms. Newman indicated that the applicant accepts the condition if it means that Council
will approve the project.
Motion by Council Member Rosansky, seconded by Mayor Pro Tern Curry to reverse the
Planning Commission's decision by adopting Resolution No. 2012 -52 to approve Lot Merger
Application No. LM2011 -002, including the additional condition proposed by the Juaneno Band of
Mission Indians and the change in square footage to a maximum of 7,116 square feet.
Council Member Hill requested and received clarification that if the lots are not merged, a home can
be built on each of the lots. Community Development Director Brandt clarified that the City would
comply with the current Zoning Code standards which are included in the staff report. Discussion
followed regarding the recorded easement.
Council Member Hill asked if both parties would agree to the lot merger if the height of the project
decreased to meet the Planning Commission's 81.2 -foot height recommendation for the lower level
and the neighbors agreed to allow access to the easement. He indicated that, if this is acceptable to
both parties, he will make a substitute motion; otherwise, he will vote for the motion on the floor.
He received no response from either party.
Council Member Daigle indicated that she does not support the lot merger because the size of the lot
is not consistent with the predominant forms in the area and it is not in keeping with the density
requirements in the CLUP.
Mayor Pro Tem Curry believed that the applicant did what they were asked to do, but the neighbors
have not been willing to compromise. He indicated support for the lot merger.
Volume 60 - Page 505
City of Newport Beach
City Council Minutes
June 26, 2012
Mayor Gardner expressed frustration with the demolition of the houses and believed that most of
the conversations at the May 8 meeting were about the height. She addressed the height, setbacks
and frontage, and believed that the project would be a better fit for Ocean Boulevard.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Sel.ich, Council Member Henn
Noes: Council Member Daigle
XII. CONSENT CALENDAR (continued)
13. ONE BEACON BAY: AUTHORIZATION TO EXECUTE LEASE RESTRICTION. [100 -2012]
City Manager Kiff reported that staff was able to find the 2008 document from the Coastal
Commission and stated that in the proposed special conditions for Mr. Cunningham, the Coastal
Commission made additions regarding landscaping prohibitions and public access signage.
Mayor Gardner suggested deleting the term "landowner" in the agreement and returning it to the
Coastal Commission indicating what was previously approved and that the City was not advised
regarding the addition of "landowner" in the agreement.
City Attorney Harp suggested adding language to "authorize the City Manager to execute the
agreement provided that the Coastal Commission removes the provision that the City of Newport
Beach be bound by the conditions ".
City Manager Kiff stated that staff will work with Mr. Cunningham and the Coastal Commission as
needed.
Motion by Council Member Daigle, seconded by Council Member Henn to authorize the City
Manager to execute the California Coastal Commission mandated Lease Restrictions for One
Beacon Bay, provided that the City, as landowner, is not bound by said restrictions.
The motion carried by the following roll call vote:
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
XVII. CURRENT BUSINESS
19. APPOINTMENTS TO BOARDS AND COMMISSIONS. [100 -2012] serve terms effective July
1, 2012 to June 30, 2016:
Council Member Rosansky announced that he will be recusing himself on the Board of
Library Trustees and Civil Service Board votes since he is related to one of the nominees. He noted
that he was on the Council Ad Hoc Appointments Committee and also recused himself from
conducting interviews for those Boards and Commissions.
City Clerk Brown indicated that the Board of Library Trustees and Civil Service Board
appointments will be conducted first.
Mayor Gardner indicated that there is impressive talent in the City.
Council Member Henn expressed concern that the City did not receive any application for the
Volume 60 - Page 506
City of Newport Beach
City Council Minutes
June 26, 2012
Building and Fire Board of Appeals and encouraged staff to see if over time applicants can be
identified.
Jim Mosher commented on the lack of Building and Fire Board of Appeals applications.
City Attorney Harp noted that a person should only serve on one Board, noting that Robyn Grant
has been nominated for two.
City Clerk Brown read the ballot votes for the Board of Library Trustees as follows:
Amy Claster (Daigle, Curry, Mayor Gardner)
Robyn Grant (Hill, Selich, Henn)
City Clerk Brown announced that a second vote will need to be taken and announced the second
vote as follows:
Amy Claster (Daigle, Curry, Mayor Gardner)
Robyn Grant (Hill, Selich, Henn)
Following discussion about methods to break a tie vote, City Clerk Brown announced that a third
vote will need to be taken and announced the thud vote as follows:
Amy Claster (Daigle, Curry)
Robyn Grant (Hill, Selich, Henn, Mayor Gardner)
City Clerk Brown announced that Robyn Grant is appointed to the Board of Library Trustees for a
four -year term.
City Clerk Brown read the ballot votes for the Civil Service Board as follows:
Debra Allen (Hill, Curry, Selich, Henn, Daigle, Mayor Gardner)
Mickey Dunlap (Hill, Curry, Selich, Henn, Daigle, Mayor Gardner)
City Cleric Brown announced that Debra Allen and Mickey Dunlap are reappointed to the Civil
Service Board for a four -year term.
City Clerk Brown read the ballot votes for the City Arts Commission as follows:
Rita Goldberg (Hill, Rosansky, Curry, Selich, Henn, Daigle, Mayor Gardner)
Caroline Logan (Hill)
Robert Smith ( Rosansky, Curry, Selich, Henn, Daigle, Mayor Gardner)
City Clerk Brown announced that Rita Goldberg and Robert Smith are reappointed to the City
Arts Commission for a -four -year term.
City Cleric Brown read the ballot votes for the Harbor Commission as follows:
Paul Blank (Hill, Curry, Selich, Henn, Daigle, Mayor Gardner)
Dana Tascher ( Rosansky)
City Clerk Brown announced that Paul Blank is appointed to the Harbor Commission for a four -
year term.
City Clerk Brown read the ballot votes for the Parks, Beaches and Recreation Commission
(PB &R) as follows:
Volume 60 - Page 507
City of Newport Beach
City Council Minutes
June 26, 2012
Gloria Alkire (Hill)
Kathy Hamilton ( Rosansky, Curry, Selich, Henn, Daigle, Mayor Gardner)
City Clerk Brown announced that Kathy Hamilton is reappointed to the PB &R Commission for a
four -year term.
City Clerk Brown read the ballot votes for the Planning Commission as follows:
Daniel Boyd (Mayor Gardner)
Larry Tucker (Hill, Rosansky, Curry, Selich, Henn, Daigle)
City Clerk Brown announced that Larry Tucker is reappointed to the Planning Commission for a
four -year term.
20. DECLARATION OF SURPLUS ASSESSMENT DISTRICT FUND BALANCES AND
REFINANCING OF 14 ASSESSMENT DISTRICTS. [100 -20121
Council Member Hill recused himself from hearing the aforementioned item because he owns
property within one of the Special Assessment Districts and departed the Chambers.
Council Member Rosansky recused himself from hearing the aforementioned item because he owns
property within one of the Special Assessment Districts and departed the Chambers.
Council Member Henn recused himself from hearing the aforementioned item because he owns
property within one of the Special Assessment Districts and departed the Chambers.
In response to Council Member Daigle's question, Deputy Finance Director Matusiewicz reported
that there was an additional $3,500 fee for an escrow verification, described the tasks of a
Placement Agent and Financial Advisor, and stated that there is a typographical error to one of the
Resolutions.
Discussion followed regarding related savings to property owners.
Motion by Mayor Pro Tern Curry, seconded by Council Member Selich to a) adopt
Resolution No. 2012 -53, authorizing the City to declare the remaining improvement fund balance as
surplus and provide staff direction as to the distribution of improvement fund balances in
Assessment Districts 92 (Coast Highway /Tustin), 99 -2 (Ocean Front) and 101 (Central Balboa); b)
adopt Resolution No. 2012 -54, hereby adopting the Reassessment Report, confirming and ordering
the reassessment by summary proceedings and authorizing and directing related actions; c) adopt
Resolution No. 2012 -55, declaring intention to levy reassessments and issue refunding bonds; and d)
adopt Resolution No. 2012 -56, authorizing the issuance of refunding bonds, and approving and
authorizing related documents and actions.
The motion carried by the following roll call vote:
Ayes: Mayor Pro Tern Curry, Mayor Gardner, Council Member Selich, Council Member Daigle
21. LABOR AGREEMENT: NEWPORT BEACH POLICE ASSOCIATION (NBPA) (C- 2056). [100-
2012]
City Manager Kiff highlighted the change in pension contributions and noted a provision that if the
City's costs increase, employee costs would go up with the City's costs to the 26.5% level.
In response to Council Member Daigle's question, City Manager Kiff explained the changes in
pension participation for sworn officers and civilian employees. He addressed offsets, cost -of- living
Volume 60 - Page 508
City of Newport Beach
City Council Minutes
June 26, 2012
adjustments, and details of the second tier as well as comparisons with other jurisdictions.
In response to Council questions, City Manager Kiff explained the differences in costs between tiers,
the possibility of reaching a 50/50 ratio, and Employer Paid Member Contributions (EPMC) reforms.
Jim Mosher inquired about increases in the costs to tax payers over the life of the MOU, whether
increased costs include attorney fees and staff time, and stipulation with the Police Association
regarding consequences of not reaching an agreement by a certain date.
City Manager Ki£f reported that the Police Association did not ask for a refund, but agreed to roll
over the 3.5% on a going - forward basis without repayment reverting back to January 1, 2012 and
roll it from a payroll deduction to a direct payment of the employee share. He addressed the overall
cost, noting that it does not include the cost of outside counsel, and expressed appreciation to the
Police Association for their commitment to keeping the City a safe place.
Motion by Council Member Rosanskv, seconded by Mayor Pro Tern Curry to a) authorize
Mayor Gardner to execute a Memorandum of Understanding (MOU) with the NBPA; b) adopt
Resolution No. 2012 -57, relating to PERS and ending reporting of Employer -Paid Member
Contributions (EPMC) over time; and c) designate the City Manager as the authorized
representative to execute subsequent written agreements under Section 5(3) of the MOU (Work
Schedules).
The motion carried by the following roll call vote:'
Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner,
Council Member Selich, Council Member Henn, Council Member Daigle
XVIII. MOTION FOR RECONSIDERATION - None
XIX. ADJOURNMENT - 10:50 p.m
The agenda for the Regular Meeting was posted on June 21, 2012, at 3:05 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 June 22, 2012, at 3:20 p.m. on the
City Hall Bulletin Board located outside of the City of Newport Beach Administration Building.
dm, -. p
City Clerk
Volume 60 -
4wr -, hl*_