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HomeMy WebLinkAbout01/14/2014 - Study SessionCity Council Minutes Study Session January 14, 2014 -- 5:00 p.m. L ROLL CALL II. Present: Council Member Gardner, Council Member Petros, Mayor Pro Tem Selich, Mayor Hill, Council Member Curry, Council Member Daigle Absent: Council Member Henn 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR - None Council Member Henn arrived at 5.04 p.m. and recused himself from the Lido Marina Village Overview item because he has a potential conflict of interest due to a business relationship he has with a business in Via Lido Plaza. 2. LIDO MARINA VILLAGE OVERVIEW. [100 -20141 Council Member Henn recused himself from this item since he has a business relationship with a business in Via Lido Plaza. Community Development Director Brandt introduced the item noting the attendance of representatives from DJM Capital Partners. She deferred to its President, Lindsay Parton for an overview of the project. Lindsay Parton, President of DJM Capital Partners, presented background including information regarding the company and some of its projects including the redevelopment of Bella Terra and building the Pacific City retail site. He added that they are very familiar with the history of Lido Marina Village and reported working closely with staff in terms of their vision for the area. He reported that the character of Lido Marina Village will change as well as the color palette, texture, signage, awnings, hardscape, landscaping and the docks on the marina side noting that the goal is to make Lido Marina Village into a more family-oriented concentric place. He addressed expansion of the marina and boardwalk, boat slips, architecture, elevations and possible tenants. He added that the intention is to use the existing buildings and not change any of the uses and stated that they are ready to start on the project. There will be no significant changes in entitlements or approvals. He added that the project is funded by DJM Capital Partners and asked for Council's comments and feedback. Council Member Gardner commented on the parking structure, boat slips and warehouse. Mr. Parton stated that they have concepts of elevations of the parking structure and will Volume 61 - Page 399 City of Newport Beach City Council Study Session January 14, 2014 provide copies of same to Council. He added that it will be repainted, re- landscaped and that new signage will be installed to improve the aesthetics. He addressed the number of boat slips and commented on what used to be the Warehouse building noting that the intention is to have restaurants, not nightclubs, to enhance the experience of residents. Council Member Gardner commented on the "curated" experience noting that it will be made into a destination. Council Member Curry commented on urban legends of the area including bad leases and easements and inquired as to how that has been addressed. Mr. Parton reported on challenges with one of the buildings and stated that the company was able to negotiate with the owner and purchase the building and fee and there are a few other long -term leases that are part of the title but they are long -term and very small spaces. He added there are spaces that they do not own and control, but all the other owners are agreeable to the proposed improvements. Council Member Petros commented on collaboration with citizens and stated that he was very impressed with the company thus far. He attended an event at The Cannery which was very well - attended by residents and commended the company for engaging the community. In response to Mayor Pro Tem Selich`s inquiry regarding parking, Mr. Parton reported that they arc currently conducting an analysis and that they would like to meet with staff to obtain their input. He added that he believes they will be able to make the parking work. Mayor Pro Tem Selich commented on the parking challenges in the area, historically. Mr. Parton stated that one of the issues they intend to address is the party boats parking and felt that it is solvable. Mayor Pro Tem Selich stated he is happy to see that they are considering widening the boardwalk. Mayor Hill commented on the desire for additional public piers and a related study by the Harbor Commission and asked how a public pier could be added to the project. Mr. Parton indicated that the idea was for potential Duffy drop -offs in the area where there are currently small boats adding that the dinghy areas could be used as public dock areas. Linda Klein asked regarding a timeline, for the project. Mayor Hill stated that a timeline is not available at this time. Community Development Director Brandt reported that there are tenant improvements that can be approved at an administrative level. She added there is potential for a Conditional Use Permit for the parking structure. Mayor Hill added that a way to address a timeline is the fact that they are not changing Volume 61 - Page 400 City of Newport Beach City Council Study Session January 14, 2014 the square footage or making major building changes and do not have a Coastal Commission issue or zoning issues. Whatever the timeline is, it will be light years ahead of any other activity. George Schroeder congratulated Mayor Hill as the new Mayor of the City. He asked that he not be so quick to cut off public comment and felt that the public will like the proposed concept as it does not require major changes or intensification of use. He added that good property management will help to make it a successful project. Denys Oberman thanked Council for agreeing to move this forward and asked whether there will be a coordinated parking arrangement with the R.D. Olson hotel project and stated that the community is excited about the change and having an upscale mix of uses. 3. NATIONAL FLOOD INSURANCE, REVIEW OF NEWPORT HARBOR'S BASE FLOOD ELEVATION. 1100 -20141 Building Manager /Chief Building Officer Jurjis provided a PowerPoint presentation addressing changes to the National Flood Insurance Program (NFIP), results of the Newport Harbor base flood elevation study and Balboa Island sea wall replacement. He noted that the City participates in the NFIP program and highlighted changes to the program. He addressed NFIP rating examples, premium rates, insurance costs, reducing insurance costs, properties having elevation certificates on file, reducing insurance rates and challenges to rate increases. In terms of the Base Flood Elevation (BFE) Study, Building Manager /Chief Building Officer Jurjis provided background and addressed the consultant and scope of work, terminology, methodologies for measuring height and determining the BFE for the Harbor as well as results of the study. Additionally, he addressed the sea wall height. In response to Council Member Petros' inquiry regarding clarification of the sea wall height, Public Works Director David Webb reported that the wall would need to be at least ten (10) feet high all the way around to provide the required FEMA protection that would remove Balboa Island from the flood plain. Building Manager /Chief Building Officer Jurjis continued with his presentation addressing the California Coastal Analysis and Mapping Project being conducted by FEMA. Public Works Director Webb continued with the PowerPoint Presentation. He addressed the existing Balboa Island drainage system, tide valves, new rubber tide valve, existing conditions, proposed plan, new drainage system concept, possible solutions for the ferry and a coordinated effort to reduce possible flooding and insurance rates. Mayor Pro Tem Selich thanked staff, indicated that he was glad the study was done and as he had suspected the BFE was too high. A secondary goal was to see if there were engineering solutions to getting the island out of the flood plain and he stated he hoped that Council will allow staff to move forward with the project. Council Member Henn commended staff for its leadership on this issue. Relative to BFE, he noted there is still sea -level rise to consider and asked whether the BFE Volume 61 - Page 401 City of Newport Beach City Council Study Session January 14, 2014 increases as sea -level rise increases and if flexibility should be maintained to go higher on the sea wall going forward. Public Works Director Webb stated that a new FEMA requirement is to address sea- water rise. He stated there is not much guidance on the matter and that one of the solutions discussed in the Tidelands Management Committee is to build the wall to ten (10) feet in order to get out of the flood plain, but design it so that it can be added to in the future, if needed. Council Member Daigle addressed rising rates as motivation to not be listed in the flood plain and asked if there is lobbying by other coastal cities to not adopt FEMA regulations. Building Manager/Chief Building Officer Jurjis reported that there is push back because communities will struggle with the higher rates; therefore, bills will be submitted to Congress to delay implementation. He stated that the FEMA Director cannot sustain paying claims with the current premiums. Council Member Henn expressed support for staffs continuing efforts on this matter. Council Member Gardner expressed concerns with other areas of the City that will be affected by sea -level rise. She noted there are many other aspects that need to be addressed and stated that this one project could take all budgets for years. Council Member Petros agreed that this is something that needs to be addressed, holistically, for the entire bay. He commented on ongoing studies that are done by FEMA to evaluate the BFE in this area and asked if there is anything that could happen to increase the BFE. Building Manager/Chief Building Officer Jurjis responded in the affirmative adding that it is still unknown and that a dialogue is needed with FEMA to control where they're going to go and share information with them. Council Member Petros stated that is even more reason to continue with the good work that staff has begun. Council Member Curry believed this is an excellent start and noted the need to focus on long -term solutions. He stated he would like to see case studies and lessons learned from the State of Florida in the next report on this matter. Council Member Gardner commented on the Chubasco as a resource for history. Ron Castle asked regarding his ability to get a permit. Building Manager/Chief Building Officer Jurjis noted that ability for him to obtain a permit will not change and that his elevation will continue to be as certified (8.3) but that the intent is to have FEMA recognize that the flood line will be 8.0. Conrad Baumgartner noted there are competitive places to obtain flood insurance which does not necessarily have to be FEMA- sponsored. He suggested that the City encourage other competitive companies to come in and give them specific information. He added that the Peninsula acts as a barrier and that the City has not flooded like the east Volume 61 - Page 402 City of Newport Beach City Council Study Session January 14, 2014 coast. Council Member Petros stated that private insurers are opting out of flood insurance. Building Manager /Chief Building Officer Jurjis stated there is an opportunity for private insurers to provide flood insurance adding that they assess risk differently than FEMA. Lee Pearl thanked Council for doing the study noting there is a tremendous fiscal impact on residents. He stated that changes can be made and that the cap on the sea wall is not as costly and will entail maintenance rather than reconstruction. Jeff Hardman, President of the Balboa Island Improvement Association, thanked Mayor Pro Tem Selich for pursuing this matter so aggressively. He thanked staff and Council for supporting this study and encouraged continued work on the matter. Harold Parker commented on the loss of sand at the smaller beach in Corona del Mar and provided testimony regarding a neighbor that had the floor of his house cave in. Council Member Gardner stated that the City has plans to put more sand on the beach at China Cove. Public Works Director Webb reported that the first phase of the Marina Park project that was recently approved will involve dredging out the new marina adding that 5,000 cubic yards have been permitted and slated for China Cove. He expects that to start some time in spring. He stated the importance for private property owners to ensure that their sea walls are intact. Don Abrams thanked Mayor Pro Tom Selich for his help on this issue and over the years as well as staff. He pointed out that FEMA is difficult to work with and stated that if there is a private provider he would like to know about it. Josh Yocam commented on the study and asked if it involved the entire harbor. Building Manager /Chief Building Officer Jurjis responded in the affirmative. Additionally, stated that the BFE will affect the entire harbor, not just Balboa Island. Mr. Yocam referenced ongoing mitigation construction to resolve the BFE and qualifying within the insurance program. Building Manager /Chief Building Officer Jurjis stated that the mitigation has to affect the entire island and that in order to mitigate a specific property the mitigation would be to raise the elevation of that particular parcel. Council Member Henn stated that the Peninsula is not currently designated within the flood plain. Building Manager /Chief Building Officer Jurjis reported that it is in a flood zone but that it is elevated at a higher elevation and is not in a hazard area so that there is no mandatory insurance issue. Mayor Hill thanked staff for the thorough report and hoped that the presentation can Volume 61 - Page 403 City of Newport Beach City Council Study Session January 14, 2014 be placed on the City's website. He encouraged residents to review it. Without objection from any member of the City Council, staff will continue to move forward with this matter. I11. PUBLIC COMMENTS Jim Mosher commended Council for taking the time last night, to discuss items on Closed Session on behalf of residents. Since there is no Closed Session tonight, he reminded Council that if it gathers between now and the regular Council meeting, conversation should not be about City business. He commented on City's litigation and how it is handled and paid for. Additionally, he commented about outsourcing legal services, and attending a recent meeting where a former City attorney was present. He added that .he was surprised that he still represents the City on some matters and commented on his fees and retainer agreement. He expressed concern that the agreement is confidential and regarding the City's Policy prohibiting hiring a company if an employee has worked for the City in the last five (5) years. He felt that Council should retain oversight of contracting. IV. ADJOURNMENT - 6:16 p.m. The agenda for the Study Session was posted on January 9, 2014, at 4:00 p.n1 on the City's website; on January 9, 2014, at 4:00 p.m. on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive; and on January 9, 2014, at 4:00 p.m. in the Meeting Agenda Binder located in the entrance of the City Council Chambers at 100 Civic Center Drive. Recording Secretary Mayor Ovi, 6 f A%, PO u City Clerk Volume 61 - Page 404