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HomeMy WebLinkAbout01 - 5-10-99May 24, 1999 Agenda.Item li 1 CITY OF NEWPORT BEACH City Council Minutes DRAFT Study Session May 10, 1999 - 4:00 p.m. INDEX ROLL CALL Present: Adams, Debay, Ridgeway, Noyes, Mayor O'Neil Absent: Glover, Thomson - excused CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Item #8, Mariners Library Roof Replacement, Council Member Ridgeway asked for clarification on the work that will be done. Public Works Director Webb responded that the Public Works Department, following the instructions of the Building Department, sought two alternatives when bidding the project. He stated that the 30 -year guarantee, Alternate A, was only $2,000 more and included an extra membrane on the roof. He added that this is the alternative being recommended by staff. 2. BUDGET OVERVIEW. 1999 -2000 Budget (40) City Manager Bludau stated that Administrative Services Director Danner would begin the presentation with an overview of the revenues and proposed expenditures for the 1999 -2000 Budget. He added that the City Council would then need to decide what the process will be for reviewing the budget this year. Administrative Services Director Danner described the three budget documents - the Resource Allocation Plan (RAP), the Budget Detail and the Capital Improvement Program (CIP). He went on to read some of the Budget Highlights as outlined in the Budget Overview handout. When Administrative Services Director Danner mentioned the four new positions being proposed in the budget, Council Member Debay inquired about a new full-time position that had been previously discussed for the Public Works Department to handle underground utility districts. Administrative Services Director Danner stated that the Public Works position was to be partly funded from the assessment districts, but could be added to the budget checklist. Administrative Services Director Danner continued to cover the Budget Highlights and stated that he recently received the State Controller's shared revenue estimates which indicate that the motor vehicle license fees to the City will be higher than estimated in the budget. Referring to a statement in the Budget Overview section of the RAP, Council Member Adams inquired about the need for the City to be aggressive with Volume 52 - Page 455 City of Newport Beach City Council Minutes May 10, 1999 INDEX regards to capturing all new vehicle lease sales tax transactions. Administrative Services Director Danner explained that the process is complicated and the City used to collect no sales tax on leased vehicles. He stated that it has been difficult to get the leasing companies to comply with a new assembly bill that requires them to pay the sales tax to the city in which the vehicle is sold. Administrative Services Director Danner listed the important capital projects recommended in the 1999 -2000 Budget as highlighted in the Budget Overview handout. Regarding Mayor O'Neil's question about the funding of the improvements on Dahlia Avenue, Public Works Director Webb stated that the project had been funded partially but that the project has since been expanded because of increased slope instability. Mayor O'Neil asked about the timing of the project and Public Works Director Webb stated that the project will begin in September and should take approximately four to five months. Mayor O'Neil asked about the funding of Bonita Canyon Park. Public Works Director Webb stated that, at this time, the City is not budgeting any money but that, if the project is expanded, the City Council may decide later to use other park revenue funds for additional improvements. In response to Council Member Debay's about the covering of the Big Canyon Reservoir, Public Works Director Webb stated that money is being set aside for the project each year, with the project itself being planned to take place during a future budget year. Administrative Services Director Danner continued with his presentation by reviewing an overhead projection of slides that were also provided in handout form. The first slide illustrated the Top Three Revenue Sources - property tax, sales tax and UTOT (uniform transient occupancy tax). Council Member Noyes asked about the reason for the increase in sales tax in the current year and during the upcoming fiscal year. Administrative Services Director Danner explained that the City has tracked sales tax performance on a monthly basis for ten years and bases the projections on historical trends. Council Member Adams asked if the majority of the projected increase in property tax was due to the projects at One Ford Road and Bonita Canyon. Administrative Services Director Danner stated that new development contributes, but that property tax assessments in general are increasing also. Council Member Ridgeway commented about new construction in the City and Administrative Services Director Danner confirmed that the projected increase in property tax is conservative. Administrative Services Director Danner showed the second slide - Top Three Revenues Compared to Total General Fund Revenues. Council Member Ridgeway confirmed with Administrative Services Director Danner that 17% of every 1% in property tax collected comes to the City. Volume 52 - Page 456 0 0 0 0 City of Newport Beach City Council Minutes May 10, 1999 Administrative Services Director Danner showed the next chart - Governmental Fund Revenues & Expenditures. He stated the reason expenditures are estimated to exceed revenues in the current fiscal year is because of the major capital improvements taking place. Council Member Ridgeway asked about ERAF (Education Revenue Augmentation Fund) and what year it was passed. Administrative Services Director Danner stated that it was passed in two phases, in 1992 for $2 million and in 1993 for $1.5 million. Administrative Services Director Danner continued by discussing the third chart - Expenditures by Function, comparing 1992 with 2000. He stated that it illustrates that the City puts its money into public safety. Administrative Services Director Danner showed the General Fund, Fund Balance for 1992 through 2000, which showed an increase since 1997. Administrative Services Director Danner confirmed for Council Member Ridgeway that the Council Policy requirement for the reserve balance is being met at 10.3% of the total budget, or $14 million for the 1999 -2000 fiscal year. Administrative Services Director Danner showed the last slide - Insurance Reserve Fund Cumulative Cash Balance. He explained that the reason for the negative balances were due to some lawsuits and some big workers compensation claims. Administrative Services Director Danner confirmed for Council Member Debay that the City's recovery from the Orange County bankruptcy is 95 %, and he added for Council Member Ridgeway that the City should eventually realize full recovery minus interest. Administrative Services Director Danner stated that he would have to get back to Council Member Noyes regarding some specific questions about the various franchise fee revenues. Administrative Services Director Danner mentioned the 1998 -1999 and 1999 -2000 Year End Fund Balance statements, attached with the slide presentation handouts. He encouraged the council members to look over the information and to contact him or the City Manager with any questions. Administrative Services Director Danner closed his presentation by stating that staff is looking for direction from the City Council on how they want to proceed with the budget review process. Mayor O'Neil pointed out the four options outlined in the Budget Overview handout. Following a general discussion, Mayor O'Neil stated that public review should occur early in the process and he favored a review of the budget at the study sessions. Mayor O'Neil expressed his concern over the budget checklist process and, in the past, council members focusing on capital improvement projects in their Volume 52 - Page 457 INDEX City of Newport Beach City Council Minutes May 10, 1999 INDEX districts. He asked if there was a better way to do this. Council Member Noyes stated that the checklist includes items that council members want to both add and items they want to remove. Mayor O'Neil suggested that this needs to be done earlier in the review process than done in prior years. He suggested that the next step should be to have the City Council review the budget at its next Study Session. He said that he is reluctant to appoint a Budget Committee, since then the whole City Council doesn't get to review the budget in detail. Council Member Noyes stated that he feels the budget checklist solved some of the problems and issues that needed to be taken care of throughout the City. City Manager Bludau stated that, with the exception of the four new positions, the 1999 -2000 proposed budget is essentially the same as the prior year's budget, operationally speaking. Council Member Ridgeway stated that he would like to see a checklist of each council member's requests for capital improvement projects. He also expressed his concern that the Study Sessions weren't being adequately publicized. He specifically stated that the homeowner association presidents should be notified. Council Member Debay suggested that the department directors should give an overview of their department's budget, and provide the City Council an opportunity to review the budget detail, department by department. She also commented about the Study Sessions not being shown on television, and how ii hampers the public outreach effort. Mayor O'Neil suggested that the Study Sessions should maybe be televised, but that the City Council should also do some of the budget review during the evening meetings. He stated that the homeowner association presidents could be invited to an afternoon Study Session. Administrative Services Director Danner confirmed for Council Member Debay that two public hearings need to be held - one for the budget itself and one for the appropriations limit. He stated that both are normally held the first meeting in June, with the budget being adopted the second meeting in June. He stated that it has been suggested that maybe the two public hearings should be held at the second meeting in May this year. Council Member Debay agreed that the budget checklist needs to be brought to the City Council sooner in the process. She asked, as an example, where money for a DARE program in the high schools would come from. Administrative Services Director Danner stated that it could come from a variety of sources, including the general fund or the asset forfeiture fund. City Manager Bludau suggested that if the City Council could let staff know of their budget checklist items early, staff could look at how they could be funded and make recommendations. Volume 52 - Page 458 0 0 0 0 City of Newport Beach City Council Minutes May 10, 1999 Council Member Ridgeway asked if a contingency fund had been setup in the budget to anticipate possible checklist items. Administrative Services Director Danner directed the City Council to look at page 28 of his handouts, Summary of Estimated 1999 -2000 Year End Fund Balances, and pointed out the estimated year end fund balances on June 30, 2000, for the contingency, stabilization and appropriation reserves. He also confirmed for Council Member Ridgeway that these estimated year end reserves include money available for capital improvement projects. Council Member Adams stated that he is aware of a couple projects from the 1998 -1999 Budget that were not constructed and are not included in the 1999 -2000 Budget. Public Works Director Webb stated that when the CIP is put together, a best guess is made on what projects can be completed during the budget year. He stated that the checklist will include items that the Public Works Department had anticipated getting out this year but won't and will, therefore, ask for the money to be carried forward. Public Works Director Webb added that he asked the City Council to bring any requests for capital improvement projects to his attention last February, so that they could be included with the proposed budget. He said that, at this point, any projects added would have to be funded by removing other projects. In response to Council Member Noyes' question, Public Works Director Webb stated that the four projects that were budgeted for the current fiscal year that will not be accomplished include the landscaping around the Fletcher Jones site. He stated that this project has been difficult to define. Public Works Director Webb stated that he couldn't remember two of the projects that were budgeted and not completed, but a second one was the reclaimed water project. He stated that there wasn't enough time to accomplish this one. Council Member Noyes suggested that these four projects should be at the top of the checklist and the City Council can work down from there. Public Works Director Webb clarified for Council Member Ridgeway that these four projects were not made a part of the 1999 -2000 Budget because at the time the CIP was prepared, staff still felt that they could be accomplished. Responding to Council Member Noyes' question about what money is budgeted for possible lawsuits, City Attorney Burnham stated that a reserve is established for each lawsuit that comes in. Administrative Services Director Danner stated that it is included in Internal Service Funds under the Insurance Reserve Fund, which includes three types of claims - general liability, workers compensation and compensated absences. City Attorney Burnham added that general liability includes both lawsuits and claims that have been filed against the City. City Manager Bludau explained for Council Member Debay that expenditures for aviation issues are included in the City Council budget, as Volume 52 - Page 459 INDEX City of Newport Beach City Council Minutes May 10, 1999 proposed by the Ad Hoc Committee. Referring to the Budget Overview in the RAP and the Aviation Goals & Priorities, Council Member Adams asked about the transferring of the Deputy City Manager from the City Attorney's office to the City Manager's office and if the Deputy City Manager's assignment to OCRAA (Orange County Regional Airport Authority) had been considered. City Manager Bludau stated that the position has been entirely budgeted in the City Manager's budget, but that it wouldn't mean the position couldn't work on airport issues. Council Member Adams suggested that the City Manager determine the appropriate delegation of time to OCRAA to do the job properly. City Attorney Burnham added that his budget does include a proposed increase in the professional and technical account for possible airport litigation. Mayor O'Neil stated that the 1999 -2000 Budget will be reviewed by the City Council at Study Sessions on May 24, 1999, June 14, 1999 and June 28, 1999; and at two Public Hearings and Regular Meetings on June 14, 1999 and June 28, 1999. Mayor O'Neil asked if this would provide the City Council with enough time to review the budget. Council Member Debay suggested that if, after a couple meetings, they found that it would not provide enough time, a special meeting could be scheduled. In response to Mayor O'Neil's question about the scheduled items for the May 24, 1999 Study Session, City Manager Bludau stated that the only other item scheduled is a report by Assistant to the City Manager Kiff on the bay and the agencies involved. City Manager Bludau suggested that this would take approximately thirty minutes and would allow one and one half hours to begin review of the budget. Mayor O'Neil confirmed with Council Member Ridgeway that the homeowner association presidents, subcommittees and EQAC should be invited to the June 14, 1999 Study Session/Public Hearing. Mayor O'Neil encouraged the council members to get their budget checklist items into the City Manager as soon as possible. Council Member Debay also reminded the council members of the offer by the City Manager and the Administrative Services Director to meet with them individually to go over the budget. 3. NEGOTIATION OF INCOME PROPERTY LEASES. Mayor O'Neil introduced the item by stating that the staff report discusses and makes recommendations on the various leases that are due for negotiation. Council Member Ridgeway stated that he was involved with the Lido Isle lease extension and felt that the negotiations worked out very well. He added that he has also met with representatives from the American Legion Volume 52 - Page 460 INDEX Income Property Leases (73) 0 • City of Newport Beach City Council Minutes May 10, 1999 INDEX and Marinapark. He suggested that he could represent the City Council in the negotiations of the leases listed, and particularly those in his district. Council Member Debay expressed her concern about one council member making promises in negotiations, when the decisions have to be made by the full City Council. Council Member Ridgeway explained that with the prior negotiations, he was very careful about not making representation of City Council and he worked with staff throughout the negotiation process. And, he added that an appraisal always has to be obtained First, as a benefit to both parties. Council Member Ridgeway stated that with the Lido Isle negotiations, staff took a hard -line and economical approach while he was trying to maintain standardization and methodology. He, again, stated that, together, he thought they did a very good job. Council Member Ridgeway stated that the decision needs to be made on who will do the appraisals. He said that the tideline issues are difficult because the appraisers have to be knowledgeable in that area. Council Member Adams stated that before the City Council discusses how the negotiations of a lease will be handled, they need to decide if they want the lease extended in the first place. Council Member Ridgeway stated that the process has to be started. He agreed that the initial question does need to be asked, but that the process must continue to move forward. Council Member Adams asked when the policy decision should be made, and stated that he doesn't understand how the decision to extend a lease could be made after the lease is negotiated. Council Member Ridgeway stated that when he sits in the negotiations, he makes it clear that he is only one vote. Council Member Debay expressed her concern that the full City Council does not receive all the information because they haven't sat in the negotiations. Mayor O'Neil stated that some leases are more complicated and controversial than others. He added that he does not necessarily agree that it is appropriate to have a policy that the council member whose district the property is in should lead the negotiating of the lease. Mayor O'Neil suggested that maybe the City Manager should be involved with the negotiations from the beginning, while receiving input from the district's council member. He agreed that the full City Council needs to make some decisions early in the process. City Manager Bludau stated that the City Council could certainly appoint him as their negotiator and provide direction to him in Closed Session. . Council Member Ridgeway agreed that this would be a good way to handle these property leases. Volume 52 - Page 461 City of Newport Beach City Council Minutes May 10, 1999 4. Mayor O'Neil agreed and stated that it might be better to not have the direct involvement of the district's council member. Council Member Adams agreed and stated that the City Council should be the policy making body and not involved with detailed negotiations. Council Member Noyes agreed that it should be the City Manager's job. And, he suggested that the American Legion, Marinapark and Girl Scout House should be put on very short -term leases, such as year -to -year. Council Member Adams stated that this provides an example of his desire to have the City Council discuss the policy decision about the lease prior to the detailed negotiations taking place. Council Member Ridgeway stated that it is hard to analyze a policy without knowing the underlying numbers and knowing the fiscal impact. He suggested that the City Manager will need to make sure an appraisal gets done and the process begins. City Manager Bludau stated that he will plan to have information on some of the property leases at the City Council's next Closed Session. Council Member Ridgeway commented about the item before the City Council at its evening meeting regarding the Balboa Angling Club lease. He stated that he is comfortable with the lease as it is being presented, but that changes from the draft were made. He also stated that he met with the Balboa Angling Club and learned that their services are open to the public. COMPLETION OF THE WILDLAND HAZARDOUS MITIGATION PROJECT. Fire & Marine Chief Riley informed the City Council of the success story that can be told with regards to this item. He stated that the City began looking at its canyon areas and the threat of wildfires to homes in the 1970's. He stated that a few years ago the City was successful in completing a wildland urban interfaced fuel mitigation project in Buck Gully and Morning Canyon and City -owned properties in Mission Canyon. Fire & Marine Chief Riley introduced Fire Marshal Lockard, the author of the program, and Deputy Fire Marshal Macey, who made sure the project was completed. Fire Marshal Lockard stated that the project has taken over four years to complete. He stated that the presentation today would include defining the wildland hazardous areas, the use of history in the hazard reduction efforts, how the hazards were reduced, the cost of the project (both public and private) and the ongoing maintenance and future improvements. Fire Marshal Lockard stated that the City defines wildland hazardous areas as those that have structures or human development in close proximity to wildland vegetation that could cause the wildfire to travel from vegetation to Volume 52 - Page 462 fi� 7_DT.'i Oral Report 0 E 0 City of Newport Beach City Council Minutes May 10, 1999 structures. He said the City attempts to develop a defense space between the two, manmade or natural, where the fuel is removed or reduced. Using a slide presentation, Fire Marshal Lockard pointed out some of the wildland hazardous areas in the City. He also showed illustrations of the City's attempt to separate the wildland from the homes and also the lower vegetation from the higher vegetation. He said that keeping some of the vegetation is desirable to maintain the soil. Council Member Debay asked about people living in the actual wildland areas. Fire Marshal Lockard stated that if the Fire Department is made aware of such activity, they notify the Police Department. Fire Marshal Lockard showed slides of homes with decks that extend over into the wildland areas, and he mentioned the general growth of development in the area. Fire Marshal Lockard stated that in 1990, the City Council declared Buck Gully and Morning Canyon as public nuisances and high hazard areas, and directed the Fire Chief to take some action. He said there was a lot of opposition from the surrounding homeowners. He provided statistics about the Oakland/Berkeley fire of 1991 to illustrate the devastating loss of the fire and the reason for taking action. He also provided a slide and statistics on the Laguna fire of October 27, 1993. Fire Marshal Lockard stated that in August of 1995, the City was successful in obtaining a grant from the Federal Emergency Management Administration in the amount of $284,000 to assist both the homeowners and the City in mitigating the problem. In 1997, the City reached consensus with the homeowners about the vegetation to be removed. Fire Marshal Lockard continued by stating that the City entered into a contract with Integrated Urban Forestry to survey the properties, develop specific details of the vegetation and access what needed to be done. He stated that of the 264 properties surveyed, 43 were found to be in compliance while the remaining 221 properties needed some form of mitigation. He said the work on private property was done by Arbor Services, and the public work was done through competitive bid. Fire Marshal Lockard went on to discuss how the hazards were reduced and the specific standards that are used. He illustrated these standards via the slide presentation. Fire Marshal Lockard covered the costs of the project, which included $132,000 for survey documentation and administration, $94,884 for private property hazard reduction (Buck Gully and Morning Canyon) and $32,184 for public hazard reduction (Upper and Lower Big Canyon). He stated that the cost of the project totaled $259,346, and was primarily paid for through FEMA reimbursements in the amount of $194,000. Citizens and the City paid for the remainder in the amounts of $23,000 and $41,000, respectively. Fire Marshal Lockard reported that from October of 1998 to April of 1999, ninety -nine properties were cleared, and none of them had to be forcibly Volume 52 - Page 463 INDEX City of Newport Beach City Council Minutes May 10, 1999 INDEX abated. He stated that a total of 111 tons of vegetation was removed from the problem areas. Fire Marshal Lockard concluded by stating that all City properties will be inspected annually and abated as necessary. Private properties will be inspected no less than biannually. He stated that all hazard reduction requirements of the County have been added into the City's Fire Code, in the event that Newport Coast is annexed into the City of Newport Beach. Mayor O'Neil expressed his appreciation for the efforts of the Fire & Marine Department. He stated that he heard a lot of controversy early on in the process, but that City staff was patient and worked with the citizens. He stated that, in the end, everyone was very pleased with how things turned out. Responding to Council Member Noyes' question about the costs, Fire Marshal Lockard stated that internal staff time was not included in the total costs presented earlier. Fire Marshal Lockard added that the FEMA grant will offer a percentage reimbursement to cover overhead, and that reimbursements from FEMA are received on an as- submitted basis. Council Member Debay asked where the vegetation was hauled to and if the costs were included in the figures given. Fire Marshal Lockard stated that the majority of the vegetation was classified as green waste and was hauled per the City's current agreement. He also confirmed that the costs for hauling were included in the figures presented earlier in the report. Council Member Debay asked how the FEMA grant was obtained. Fire Marshal Lockard stated that they basically applied for the grant and it was approved by FEMA. Council Member Debay congratulated the Fire & Marine Department for the accomplishment. Council Member Noyes stated that he feels that the staff time should be included in the costs and he asked if an estimate of the ongoing costs for the maintenance of the program had been figured out. Fire & Marine Chief Riley stated that part of the staff assignment for the Deputy Fire Marshal is the oversight of the hazard mitigation program and that a certain amount is budgeted for City- mitigated properties in the capital improvement program. He added that the private properties are maintained by the property owners. Council Member Noyes suggested that the figures for the amount of time spent by the Deputy Fire Marshal on hazard mitigation be calculated. Fire & Marine Chief Riley stated that a time cost study on the position could be done. He added that the inspection services are handled by contract. Responding to Council Member Noyes' question, Fire & Marine Chief Riley stated that the chipped wood ground cover is flammable but it is used in such a way as to limit its transfer of fire. Fire & Marine Chief Riley explained for Council Member Ridgeway that the private property owners' responsibilities are covered in the Fire Code, through existing City and County standards. Volume 52 - Page 464 0 0 1] 0 u 0 City of Newport Beach City Council Minutes May 10, 1999 Council Member Ridgeway asked how the reduction in hazardous material would affect Buck Gully and Morning Canyon if another Laguna Beach -type fire were to take place. Fire & Marine Chief Riley stated that the movement of the fire through the canyon would not be changed, but the ability of the Fire & Marine Department to defend the homes has been greatly increased. He explained that one of the reasons for this is the increase in defensible space that has been provided. Fire Marshal Lockard added that the Fire & Marine Department is still concerned about a number of trees that are close to structures. Fire & Marine Chief Riley explained that the Public Safety Committee did not approve the removal or thinning of some of the more significant, mature trees, PUBLIC COMMENTS - None, ADJOURNMENT - 5:52 p.m. The agenda for the Study Session was posted on May 5, 1999, at 2:30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 52 - Page 465 INDEX CITY OF NEWPORT BEACH City Council Minutes DRAFT Regular Meeting May 10, 1999 - 7:00 p.m. INDEX STUDY SESSION - 4:00 p.m. [Refer to separate minutes] CLOSED SESSION - 6:00 p.m. CLOSED SESSION REPORT PRESENTED Pursuant to G.C. §54957.1, Mayor O'Neil reported that the final settlement for the consolidated Irvine Avenue cases, entitled Townsend vs. City of Newport Beach, et. Al. (Case No. 794047), were settled without requiring the City to pay any money to any party. Pursuant to G.C. §54957.1, Mayor O'Neil reported that the final settlement for a Writ of Mandate action that was approved in Closed Session on April 26, 1999, for Quail Business Center Owners' Associations vs. E.J. Holtze Corporation and the City of Newport Beach was settled without requiring the City to pay any money to any party. RECESSED AND RECONVENE AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Adams, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Absent: Glover (excused) Pledge of Allegiance - Council Member Noyes. Invocation by Pastor Glenn Rouse of Newport -Mesa Christian Center. Mayor O'Neil announced that City Manager Bludau has been on board since last week and that this is his first official City Council meeting. City Manager Bludau stated that it is good to be sitting at the dais after sitting in the audience for the past three meetings. Bob Traeger, Huntington Beach Community Clinic, invited everyone to the 7,h Annual Duck- A -Thon on Saturday, May 15 at the Huntington Beach Pier; and presented Mayor O'Neil with a racing kit consisting of a Newport Beach scroll, a rubber duck, and decorating decals for the rubber duck. MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON DISCUSSION ITEM): In response to Council Member Ridgeway's question on how to proceed with the Performing Arts Theater Foundation's request that the City co- sponsor a 5K Volume 52 - Page 466 City of Newport Beach City Council Minutes May 10, 1999 Race in Balboa on October 16 or October 23, City Attorney Burnham stated that an item can be put on an agenda announcing the event and someone can request that Council approve co- sponsorship of the event. • Mayor O'Neil reported that Council Member Adams, Council Member Ridgeway, and he attended a ceremony last Saturday at Castaways Park in which a California Live Oak was planted in honor of Jean Watt receiving the Frank and Francis Robinson Environmental Award. The tree was donated by Stop Polluting Our Newport (SPON). CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR (STUDY SESSION) AND REGULAR MEETING OF APRIL 26, 1999. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND full of all ordinances and resolutions Clerk to read by title only. RESOLUTIONS. Waive reading in under consideration, and direct City RESOLUTIONS FOR ADOPTION 3. Item removed from the Consent Calendar at the request of a member of the audience. ORDINANCES FOR INTRODUCTION 4. ADOPTION OF THE FIRE CODE. Introduce Ordinance No. 99 -13 Amending Title 9 of the NBMC to adopt 1998 California Fire Code and pass to second reading on May 24, 1999. 5. ADOPTION OF THE BUILDING CODES. Introduce Ordinance No. 99 -14 Amending Chapters 15.02, 15.03, 15.04, 15.05, 15.06, 15.08, 15.09 and 15.10 of Title 15 of the NBMC to adopt the 1997 Edition of the Uniform Administrative Code, the 1997 Edition of the Uniform Housing Code, the 1998 Edition of the California Building Code, the 1998 Edition of the California Mechanical Code, the 1998 Edition of the Electrical Code, the 1998 Edition of the California Plumbing Code, the 1997 Edition of the Uniform Swimming Pool, Spa and Hot Tub Code, and the Excavation and Grading Code; and pass to second reading on May 24, 1999. 6. ORDINANCE NO. 99 -15 AMENDING SECTION 1.08.055 OF CHAPTER 1.08 OF THE NBMC PERTAINING TO APPOINTMENT OF HEARING OFFICER. Introduce ordinance and pass to second reading on May 24, 1999. CONTRACTS AND AGREEMENTS 7. MACARTHUR BOULEVARD WIDENING — SEGMENT 2, CONSTRUCTION OF SOUND WALLS FOR CONTRACT NO. 2825(x) — . COMPLETION AND ACCEPTANCE. Accept the work; authorize the City Volume 52 - Page 467 INDEX Ord 99 -13 Fire Code (41153) Ord 99 -14 Adoption of Building Code (26153) Ord 99 -15 Hearing Officer Amendment (53) C- 2825(I) MacArthur Blvd. Widening City of Newport Beach City Council Minutes May 10, 1999 Clerk to file a Notice of Completion; and authorize the City Clerk to release the bonds 35 days after the Notice of Completion has been recorded in accordance with applicable sections of the Civil Code. 8. MARINERS LIBRARY ROOF REPLACEMENT — AWARD OF CONTRACT (C- 3241). Approve the plans and specifications; award C -3241 to Long Beach Roofing, Inc. for the total bid price of $43,624.80 for Alternate "A" and authorize the Mayor and the City Clerk to execute the contract; and establish an amount of $2,375 for Alternate "A" to cover the cost of unforeseen work. 9. LEASE AGREEMENT WITH THE BALBOA ANGLING CLUB. Approve proposed lease. 10. RENEWAL OF CORONA DEL MAR FARMERS MARKET. Approve Third Amendment to Encroachment Agreement, which allows for annual renewal by the City Manager for up to ten (10) additional one -year terms. 11. PACIFIC PLAZA (BLOCK 800), NEWPORT CENTER. Approve a Professional Services Agreement with Bonterra Consulting of Costa Mesa for professional environmental services for a contract price of $51,510. 12. KOLL CENTER NEWPORT OFFICE PROJECT. Approve Professional Services Agreements with Lawrence Associates of San Juan Capistrano and I {eeton Kreitzer Consultants of Irvine for professional project management and environmental services. MISCELLANEOUS ACTIONS 13. PLANNING COMMISSION AGENDA FOR MAY 6, 1999. Receive and file. Motion by Mayor Pro Tern Thomson to approve the Consent Calendar, except for the item removed (3). Council Member Ridgeway noted for the record that he erroneously stated that the trees were to be planted at the Central Library when they were actually suppose to be planted at the Irvine Terrace Park (Agenda Item 16 of the April 26, 1999 regular meeting). Without objection, the motion carried by acclamation. ITEMS REMOVED FROM THE CONSENT CALENDAR 3. RESOLUTION NO. 99 -_ ESTABLISHING TWO -HOUR PARKING ON HAZEL DRIVE FROM THE ALLEY NORTH OF COAST HIGHWAY TO SECOND AVENUE. Paul Glowienke, 427 Hazel Drive, stated that the homeowners need to be able to park in front of their homes and hoped that Council approves the 2 -hour time limit on Hazel Drive. Additionally, he reported that the residents are requesting that someone on Council make a motion to issue the Volume 52 - Page 468 INDEX (38) C -3241 Mariners Library Roof Replacement (38) C -1609; Balboa Angling Club (38) C -3143; Farmers Market Encroachment Agreement (38) C -3280 Pacific Plaza (38) C- 3281IC -3282 Koll Center (38) Planning (68) Restricted Parking Hazel Drive (85) 0 City of Newport Beach City Council Minutes May 10, 1999 INDEX nine homeowners on Hazel Drive residential parking permits. Motion by Council Member Rideewav to approve the resolution establishing two -hour parking on Hazel Drive from the alley north of Coast Highway to Second Avenue; and issue residential parking permits to the nine homes on Hazel Drive. City Attorney Burnham confirmed Mayor O'Neil's statement that the issuing of permit parking cannot be included because it was not agendized. He indicated that this will need to be brought back at the next meeting. Noting that the parking permit issue might have been considered by the Traffic Affairs Committee, Mayor O'Neil wanted to know why they were not approved and suggested issuing them on a trial basis. He stated that he will accept the motion if the motion is to move it to the next meeting for consideration. Council Member Ridgeway amended his motion to direct staff to bring back a report at the May 24, 1999, meeting which includes issuing residential parking permits to the nine homes on Hazel Drive as a recommendation. Assistant to the City Manager I{iff reported that the Committee, under Police Department advice, believed that a two -hour parking limit without residential parking permits would be the most straightforward way to deal with this. He indicated that issuing residential parking permits would entail needing more personnel and may cause other streets to request it. Mayor O'Neil stated that he would favor permit parking on a trial basis since this is a small street that is being impacted by many businesses. Council Member Debay noted that permit parking was discussed for the area near Hoag Hospital. She requested that a budget report be included in the staff report that shows what it would mean, manpower -wise, if other residential parking permits were instituted in other neighborhoods. Council Member Ridgeway noted that residential permit parking is effective in Redondo Beach and Manhattan Beach. He expressed the opinion that, if there is to be a trial basis of any kind, it should be with the parking permits. Council Member Adams expressed concern about permit parking growing in Corona del Mar and stated that the City needs to acknowledge that businesses and employees do need to park somewhere. He believed that, in writing the report, staff needs to consider what the ramifications would be if this were to spread in Corona del Mar. Mayor O'Neil believed that it is important that staff also point out the uniqueness of this area that separates it from the rest of the areas in the City. He indicated that the area near Newport- Harbor High School has residential permit parking because there is a reason for it. 0 Following discussion, it was determined that the area is out of the Coastal Volume 52 - Page 469 City of Newport Beach City Council Minutes May 10, 1999 Zone and will not require the Coastal Commission to review this issue. Without objection, the amended motion carried by acclamation. PUBLIC COMMENTS • Brad Dorfman, 2404 W. Oceanfront, expressed concern relative to the 24th Street volleyball court. Council Member Ridgeway stated that the other applicant, Charles Hartwell, phoned him today. He expressed the opinion that this is a matter that needs to be publicly aired and that the homeowners probably have some legitimate concerns. He stated that this item should probably be recalendared. Council Member Debay stated that she requested the report at the last meeting and indicated that she went to the volleyball court to observe the area and speak with those around the court. She stated that the charge that the 241h Street volleyball court was closer to the boardwalk than the other courts further down the beach was not true. Following discussion, Mayor O'Neil told Mr. Dorfman that he can request that this issue be placed on the agenda by sending correspondence to Council or by contacting his Council Member. Pamela George and Faith Makowsky, 414 Hamilton Street, Costa Mesa, representing the Newport Club and Elegant Nails, stated that they have a petition requesting that the parking meters in front of the Newport Club (414 East 32nd Street) be changed from one -hour to two -hour meters. Ms. George indicated that all the Newport Club meetings last an hour to 1.5 hours and that participants leaving meetings to put coins in the meters causes a disruption. She indicated that the same inconvenience is true for the patrons and employees of Elegant Nails. Mayor O'Neil stated that the best way to initiate the change would be to contact the City Managers Office or the Traffic Affairs Committee. City Manager Bludau provided them with his business card. PUBLIC HEARINGS 14. VACATION AND ABANDONMENT OF A PORTION OF AVOCADO AVENUE LOCATED BETWEEN PACIFIC DRIVE AND WATERFRONT DRIVE IN THE CORONA DEL MAR AREA. Mayor O'Neil opened the public hearing. Susan and Gerald Ostrowsky, 413 Acacia Avenue, expressed opposition to any change to their charming neighborhood. They believed that widening the street or destroying the stone wall would be a waste of City money and that an easy solution would be to restrict parking. Public Works Director Webb explained that the City does not anticipate widening Avocado Avenue or removing the stone wall. He stated that, in Volume 52 - Page 470 INDEX Res 99 -34 Vacation & Abandonment Avocado Avenue (90) 0 City of Newport Beach City Council Minutes May 10, 1999 exchange for the abandonment of 23 -feet of right -of -way, the Wheelers will provide the funding to construct a parking turnout across the frontage of two properties that will be in the parkway area. He explained that the Fire Department requested that corrections be made to the street because there is insufficient room for a fire vehicle or any large vehicle to make a circuit around the area when a vehicle is parked on that section of Avocado Avenue. This solution was worked out as a compromise since the residents were opposed to the proposed parking prohibition. He indicated that the proposal moves the curb back about five feet from the current walls. Council Member Debay provided the Ostrowskies with a copy of the staff report. Terry Andrus, representing the Wheeler Family, stated that they support the recommendation in the staff report and that he is happy to answer any questions. There being no further testimony, Mayor O'Neil closed the public hearing. Motion by Mayor O'Neil to adopt Resolution No. 99.34 ordering the vacation and abandonment of a portion of unused right -of -way along the westerly side of Avocado Avenue between Pacific Drive and Waterfront Drive, adjacent to 401 Avocado Avenue; and direct the City Clerk to have the Resolution recorded by the Orange County Recorder. Without objection, the motion carried by acclamation. 15. AMENDMENT TO SECTION 20.65.040 (HEIGHT LIMITATION ZONES) OF TITLE 20 OF THE NBMC TO PLACE ALL PROPERTIES IN THE RESIDENTIAL - AGRICULTURAL (R -A) DISTRICT IN THE 32/50 FOOT HEIGHT LIMITATION ZONE [AMENDMENT 8871. Mayor O'Neil opened the public hearing. In response to Council Member Debay's question, Assistant City Manager Wood confirmed that this amendment only affects three residential properties off Mesa Drive. There being no further testimony, Mayor O'Neil closed the public hearing. Motion by Council Member Re to adopt Ordinance No. 99 -12. Without objection, the motion carried by acclamation. 16. AMENDMENT TO CHAPTERS 20.80 (SERVICE STATIONS), 20.03 (DEFINITIONS), AND 20.67 (SIGNS) OF TITLE 20 OF THE NBMC TO UPDATE LAND USE AND PROPERTY DEVELOPMENT REGULATIONS FOR SERVICE STATIONS [AMENDMENT 8851. Mayor O'Neil opened the public hearing. Senior Planner Alford stated that this amendment represents the first comprehensive look at the City's service station regulations since they were adopted in 1972. He explained that this began as an initiative from the Volume 52 - Page 471 INDEX Ord 99.12/PCA 887 Residential - Agricultural (R -A) District Height Limitations (53/94) Ord 99- 16/PCA885 Service Stations (53/94) City of Newport Beach City Council Minutes May 20, 2999 INDEX Economic Development Committee (EDC) and was overseen by a . subcommittee consisting of Planning Commission and EDC members. The committee found that the existing regulations were antiquated and highly limited with regard to the types of permitted uses and activities. Mr. Alford reported that, with a use permit, service stations will be permitted to add convenience markets. Further, the amendment allows for an incidental and minor maintenance area; establishes a minimum land area; establishes new setbacks, landscaping standards, and sign standards; sets criteria for use permits; and includes updated zoning terms. Mr. Alford pointed out that there is a set of design review guidelines in the amendment, that does not include an architectural style review, to address the potential impacts the establishment may have to the visual quality and character of the community. Mr. Alford noted that the end to the ban on alcoholic beverage sales at service stations is one of the more serious consequences of the amendment. Currently, food and beverages can only be sold in vending machines and, since the State would not allow the sale of alcoholic beverages through a vending machine, there has been a defacto ban on their sales. By allowing the convenience markets and adding the 50 square foot public net area exemption, this ban would disappear. Mr. Alford believed that any issue can be addressed on a project -by- project basis with the regulations proposed to Chapter 20 and the procedures and standards established by the alcoholic beverage outlet ordinance. Mr. Alford stated that the Planning Commission made a last minute revision . to a provision regarding public restrooms but found that this conflicted with State law. Alternate language is proposed in the staff report. In response to Mayor O'Neil's questions, Mr. Alford confirmed that the City is not approving the sale of alcoholic beverages at all service stations by adopting the ordinance. Regarding the use permit, he stated that there is "double coverage" since the proposed ordinance and the alcoholic beverage outlet ordinance states that this type of use requires a use permit. In response to Council Member Adams' questions, Mr. Alford stated that this ordinance does allow for the construction of an AM/PM mini mart -type development as long as the minimum floor area for the convenience market is provided and the number of pumps and retail space meets the minimum land area criteria. He indicated that there are limitations on the types of equipment and products that can be displayed outside of the building. Council Member Adams stated that he was on the Planning Commission when this was discussed and that they were shown unsightly examples in which racks were creeping out the doors of the convenience stores. In response to Council Member Ridgeway's questions, Mr. Alford stated that the use of vending machines within the 50 square foot net public floor area is prohibited so that there is additional floor area within the structure for selling items. He indicated that service stations are technically in violation of the code now by displaying items that are not in vending machines. Regarding design review guidelines for signs, Mr. Alford stated that . Volume 52 - Page 472 0 City of Newport Beach City Council Minutes May 10, 1999 limitations have been established relative to the quantity, size, and location of signs but not to its content. He indicated that the reason for having the size of the signs relate to the amount of building frontage was to keep the sign proportional to the size of the building, but a maximum size can be established if desired. There being no further testimony, Mayor O'Neil closed the public hearing. Council Member Adams stated that he is opposed to the amendment, explaining that he is not convinced that there is a need for this; that he has a problem with introducing design guidelines into the City; that the introduction of convenience markets will not be an asset to the community; and that he wants to preserve the defacto ban on alcohol sales at service stations. He believed that the tone of the staff report is to change the service station regulations so that the gasoline industry can do as they want. He noted that service stations having attached restaurants was a passing fancy and that he does not see anything wrong with keeping the status quo. Regarding the contention by the gasoline industry that no one wants to invest in gas stations, Council Member Adams noted that the gas station across the street from City Hall was completely renovated recently without the need for convenience markets or service bays. Council Member Ridgeway stated that he was also on the Planning Commission when the changes were not approved; however, he believed that this ordinance goes a lot further than what was before the Planning Commission at that time. He expressed the opinion that there are adequate safeguards relative to alcohol, especially with the alcoholic beverage outlet ordinance. He noted that the City had 44 service stations at one time, but that there are now 17 in the City. Council Member Ridgeway expressed concern that the City will lose some of the service stations if changes are not made. He stated that there will soon be a flurry of gasoline company mergers in the next months, creating a need for the service station operators to augment their income. Noting that he has historically been opposed to design review guidelines, Council Member Ridgeway believed that the language in the ordinance is hardly a design review and that it will provide the City the ability to have first- class, quality service stations. Council Member Debay stated that the Planning Commission was also discussing this issue seven years ago when she was on the Commission. She indicated that she will support the amendment and noted that she has noticed the decline in the number of service stations and the high cost of gasoline in the City. She wondered if this has anything to do with the cost of the land in the City and the service stations having to keep mechanics on staff. Council Member Debay believed that the City will hardly end up with a "junk site' since there are so many conditions to meet in order to qualify for the use permit. Motion by Council Member Debay to introduce Ordinance No. 99 -16 and pass to second reading on May 24, 1999. In response to Council Member Noyes' questions, Mr. Alford stated that the City has the ability to prohibit alcohol sales through the provisions in the Volume 52 - Page 473 INDEX City of Newport Beach City Council Minutes May 10, 1999 INDEX • alcoholic beverage outlet ordinance, in addition to having the use permit applications evaluated on a case -by -case basis; the City can limit the hours that alcohol can be sold; and the City can limit the sale of single cans. Mayor Pro Tem Thomson stated that he is in favor of progress; however, expressed concern that this amendment may start a litter problem in the City. He stated that he is uncomfortable with having design review guidelines and believed that all concerns should be resolved before approving the amendment. He indicated that this was also discussed when he was on the Planning Commission and that they talked about selling the alcohol at ambient temperature so that they are not ready to drink as soon as the patrons leave the establishment. Regarding the decrease in the number of service stations in the City, Mayor Pro Tem Thomson believed that this makes them more competitive and takes up less land mass to serve the people. He stated that he will not support the amendment unless, and until, there are safeguards regarding the sale of alcohol. Referencing the Planning Commission minutes, Council Member Adams pointed out that the reduction of service stations in the City is no different than that of any other city, including those that allow convenience markets. He believed that there is no evidence that adding a convenience market will preserve or affect the number of gas stations in the City. Mayor O'Neil stated that he will support the motion for the same reasons as Council Member Ridgeway. He believed that there are adequate safeguards built into the ordinance and that there are a lot of inconsistencies in the current service station regulations that need to be corrected. He indicated that he does not favor the sale of alcoholic beverages from services stations; however, stated that he cannot differentiate between driving into a service station for gas and then driving next door to a liquor store versus getting the alcohol at the convenience store at the service station. Mayor O'Neil did agree that it is bad to have more alcoholic beverage outlets perforate in the City, but believed that the industry is in a position where they need some of these uses to augment their income. Further, that this will be good for the City in the long run because the City will receive tax revenue from the sales. Council Member Noyes pointed out that the amendment is an intensification of use and warned those applying for the use permit that they will be under close scrutiny because of the many conditions involved. In response to Mayor Pro Tem Thomson's question, City Attorney Burnham confirmed that the City can legally limit the sale of alcohol in service stations and pointed out that this use also requires approval from the Alcohol Beverage Control (ABC). Noting that ABC is the ultimate authority, Mayor Pro Tem Thomson asked whose guidelines would be followed. Mr. Burnham stated that, even though ABC has their own regulations, the sale of alcohol at service stations will not be permitted if the City prohibits it. He indicated that ABC will recognize the City's legitimate and legal land use clause regarding alcohol. With Council Member Adams and Mayor Pro Tem Thomson dissenting, the motion carried. Volume 52 -Page 474 0 0 City of Newport Beach City Council Minutes May 10, 1999 17. ROWE RESIDENCE - 2231 PACIFIC DRIVE - AN APPEAL OF THE DECISION OF THE PLANNING COMMISSION WHICH UPHELD THE DECISION OF THE MODIFICATIONS COMMITTEE, WHICH DENIED A REQUEST TO CHANGE CONDITION NO. 4 OF MODIFICATION NO. 4538 - THE CONDITION OF APPROVAL REQUIRES THAT USE OF AN ATTIC SPACE OVER A GARAGE BE LIMITED TO STORAGE ONLY, AND THAT THE STORAGE AREA IS NOT TO BE USED AS ADDITIONAL LIVING SPACE. THE APPLICANT IS REQUESTING THAT THE CONDITION OF APPROVAL BE CHANGED TO ALLOW THE AREA OVER THE GARAGE TO BE CONVERTED TO LIVING AREA AND USED AS A HOME OFFICE. Mayor O'Neil opened the appeal hearing. Motion by Mayor O'Neil to continue the item to May 24, 1999 at the request of the applicant/appellant's representative. Without objection, the motion carried by acclamation. MOTION FOR RECONSIDERATION -None. ADJOURNMENT - 8:10 p.m. + + + + + + + + + + + + + + + + + + + + + + + + + + + + + ++ The agenda for the Regular Meeting was posted on May 5, 1999, at 2:30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 52 - Page 475 INDEX Mod. Permit 4843 Appeal 2231 Pacific Drive Rowe Residence (94)