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HomeMy WebLinkAbout01 - Minutes - 01-13-2004January 27, 2004 Council Agenda Item # 1 CITY OF NEWPORT BEACH City Council Minutes Study Session January 13, 2004 - 4:30 p.m. INDEX ROLL CALL Present: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Absent: Adams (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan referred to Item #4 and requested information on how much the City has spent to date on consultants, attorneys, etc. for extending the current cable franchises. On Item #16, the Gugasian property across from the Bay Club, Council Member Heffernan requested information on when the minutes or a confirmation of what went on at that hearing would be available because of the appeal period. Council Member Nichols noted that he will pull Item #6 on the Landmark buildings during the regular meeting. He noted that all the buildings are being treated the same and questioned the appropriateness of that. Mayor Ridgeway confirmed with City Attorney Burnham that those issues have already been discussed. 2. CONFERENCE & VISITORS BUREAU PRESENTATION. Marta Hayden, Executive Director, Newport Beach Conference and Visitors Bureau (CVB/Bureau), introduced the Board members present at the meeting and utilizing a PowerPoint presentation pointed out that the Bureau's mission statement in essence talks about increasing the economic fiber for the community, generating overnight visitor stays and increasing what the visitor spends. She said they are continuing with that mission today by talking about the renewal of their contract. She said the Bureau feels they have a very important relationship with the City and noted that the contractual arrangement with the City happened over 20 years ago and they consider themselves the marketing division for the City. She noted that there have been some challenges in the hospitality industry and with the local economy so they want to make sure they're reaching their full potential and generating as much TOT for the City as possible. She explained that the City collects $8.7m in transient occupancy tax (TOT), which represents 10% of the City's budget. In addition, she noted room revenue, restaurant and the retail spent and noted that the hospitality community generates up to $25m in revenue for the City. She noted changes in the economy over the past two years and stated that a part of the partnership that they feel is very important is the reinvestment of a portion of the TOT to generate more TOT. She noted that today they will address the current economic climate, the competitive analysis, the bureaus budget, the state of the hospitality industry, allocation of resources, key Volume 56 - Page 578 (100 -2004) City of Newport Beach Study Session Minutes January 13, 2004 INDEX accomplishments, what the Bureau does with the funding and the funding recommendation they would like to see approved with their contract renewal. She noted that they are aware of the City's challenges as it pertains to PERS, the stock market, and the state budget and the impact on the City. She presented a slide showing how the City competes with other cities in California and noted that San Diego has $16m to promote itself and Monterey has $3.3m. She said they need to be properly funded so they maintain and grow the market share. She noted that the Bureau was instrumental in bringing the Toshiba to Newport Beach, which represents over 3000 guest rooms, or $700,000 in room revenue as well as food and beverage revenues of over $300,000. She explained that over a six year period they are at the very lowest time in their funding level. In 2001 they were at over $10m in TOT, last year dropped to $9m and this year based on the projections their funding is at $1.3m. For their base program just to operate it has to be between $1.6m and $1.9m. She stated that the bureau is very passionate about the programs they use to generate business for Newport Beach. This year they used $337,000 from their reserves in order to fulfill their commitment for the trade shows and familiarization trips. As far as hospitality, in 2001 the daily room rate was almost $170 and occupancy was over 75 %. In two years it has dropped to $135 per guest room and occupancy is 66.8 %. Since 2002 the occupancy has increased, but at the price of discounting rooms. In twelve months there have been over 700 new guest rooms opened within a six mile radius and during the same time period there have been another 1300 guest rooms added in the Anaheim and Garden Grove areas. This has impacted the larger conventions and Newport Beach no longer enjoys the overflow that used to come to the beach area. For all of Orange County there have been over 7000 new guest rooms added and everyone is competing for the same pie. She reiterated that they are at their very lowest level of funding in the most competitive market that they've ever had and they really need the funding to do a very effective program on the City's behalf. Over 90% of their funds are dedicated to sales and marketing to generate more TOT and bring in more groups. She said they are an umbrella group to get their hospitality partners together to participate in trade shows and familiarization trips to bring in planners to experience Newport Beach and look at Newport Beach as a possibility for their next meeting. Regarding their key accomplishments, she said they have goals and their sales lead goals resulted in $5m in direct room revenue. They also have sales goals from their influencing sales and they work with their partners in the hotel industry to do trade shows and develop leads to eventually book rooms. They had over $18m this year in room revenue. They launched a very successful summer stay program going after the vacationer and starting in May the occupancy has increased 10% every month. Another goal with their public relations agency and communications department is to get favorable impressions in the media. With the boat show in December, they received over $600,000 worth of ad equivalencies on all the major networks (CNN and A &E) and were in the top ten on the ultimate holiday town program. Ms. Hayden noted that the bureau is very pivotal to the sales process both as a catalyst and with their own sales force as a direct entity to go out and get the business. As far as what the bureau would do with additional funding, she noted that they are presently spending money from reserves which can't be sustained for very long. If they don't have the funds to go forward they won't be able to fund seven trade shows and the City would be missing $7m in rooa revenue. Their lead generating firms anticipate increasing their leads by 40°/ and they had a $lm revenue goal to generate leads, which they've exceeded. � Volume 56 - Page 579 E 0 L� City of Newport Beach Study Session Minutes January 13, 2004 Wall northern California sales office was established and their goal was $lm in leads. The advertising budget was increased to direct people to the website and to generate RFP's for future sales. She reiterated the goals of the public relations firms and their goals for favorable impressions. Volume 56 - Page 590 Revenue Manager Glen Everroad noted that the current contract provisions were established in 1998, which was an extension of a 1993 contract that the City originally created with the bureau to provide a portion of the TOT in addition to the Visitors Service Fee (VSF) that the hotels collect in the 10% rate that is charged on the room rental. Using a spreadsheet to illustrate his points, Mr. Everroad explained how the contract provides for the bureau's funding. The funding is a combination of the VSF, which is a portion of the 10% that the hoteliers collect and 99% of that VSF that is collected is provided to the CVB, which has been the source of their funding since the VSF was originally created in 1986. He noted that the spreadsheet reflects the last six fiscal years and the top number is the total collection that the hoteliers are providing to the City. The hoteliers collect 10% of the room rental rate. 9 of the 10% is the TOT and prior to 1993 all of the TOT was retained by the City and with the 1993 agreement the City began sharing a percentage of the TOT with the CVB. That came in conjunction with a TOT tax increase that was imposed in 1993 and the current agreement that was approved in 1998 is a continuation of that formula. The VSF reflects the 1% the hotels have collected and then there is a bonus amount. Since 1993 there was a threshold amount of TOT that the City anticipated coming from the 9% in TOT and then everything that exceeded that threshold amount of TOT the City would share 50150 with the CVB in what is referred to in the agreement as a "bonus payment ". That bonus has a cap that was created in 1993 and both the threshold and the cap have increased by the change in the consumer price index since 1993. The bonus amount is an amount calculated from the TOT based on the threshold up to a cap. The last six years reflects a bonus amount that is at the cap that was established in 1993. The VSP plus the bonus is what the City remits to the CVB each year. The percentage of the total collection from the hotels that the CVB receives from the City is 14.88% (2003). Responding to Council Member Heffernan's questions, Mr. Everroad explained that the bonus amounts in each of the years depicted in the spreadsheet are at the cap and have been at the cap since around 1997.98. He noted that they surveyed some of the local cities that the CVB competes with to identify what percentage of the collections those communities realize in terms of the CVB's effort. He noted that there are a wide array of formulas for funding conference and visitor bureau programs and noted that the average of the 10 -12 communities surveyed provide a funding of the total collections from the hotel of about 14.8 %. The range in that particular survey was from a low of 8% to a high of 31% of the total collection being provided to the conference and visitor bureaus. The 31% was the City of Monterey, which is a unique situation since it is actually a City department opposed to a contractor to the City that provides that marketing effort for the convention center. The next City down in terms of funding percentages was Newport Beach, so the City is 2nd on a list of 11. In response to Council Member Heffernan's questions about how the total collections have gone down but the bonus has gone up, Mr. Everroad explained that there is a lag between the payment of the bonus and the fiscal year in which the revenue is realized. The contract provides that the City will calculate and pay the CVB in 30 days following the end of the fiscal year. He noted that the City is always pushing against the cap in the bonus amount so even if the Volume 56 - Page 590 City of Newport Beach Study Session Minutes January 13, 2004 INDEX TOT collections fall because the CVB has been at the cap for the last six fiscal years, they get to the cap sooner. As far as projecting 2003 -04 TOT collections, Mr. Everroad noted that the City doesn't realize the bulk of the TOT in the first two quarters of the fiscal year so it would be difficult to estimate at this time and deferred to the industry to make that projection. He noted that during the upcoming fiscal year there are some dynamics with a couple of hotels that will affect it. Ms. Hayden reiterated that the current formula is very complex and the one they are recommending is simpler and is a stepped program. Over the course of this last year she said they have talked about a subsidy since they're currently pulling money out of reserves and considered requesting a $400,000 subsidy, however realize this isn't the time for that so they're not recommending it. The other option is a room tax increase and with the economy recovering as it is they feel it could almost have a negative effect with the consumers and will put them higher than their competitive set. She explained how this will impact the group market and they feel the funds would be better spent on marketing to try to get more TOT than to drive the rate up. She said the one they would like to propose and that they feel is in the best interest of the City would be the stepped program. Their contract would remain as is and there would be no financial impact during this budget period and would remain as is through 2004. As of July 16E, they would look at an average of what they've been getting for the percentage and would go up 1% in the funding formula. They project that if everything stayed as is the impact to the City would be $174,000. She said if they weren't doing certain projects the loss would be $5m so in TOT the loss would be another $500,000 if they weren't doing just one of the programs mentioned. Then they would look at increasing 1% in the subsequent following two years, which they feel would really soften the impact and the City would be sharing in the incentive and the risk as they move forward. It would make them whole and it is a very simplified formula. She asked that the Council adopt their recommendation and approve it going forward. City Manager Bludau reiterated that since the CVB currently receives 15.7% it would go up to 16.7 %, a year later to 17.7% and after a third year it would be at 18.7 %. It would go to a straight percentage rather than a cap. He explained that in 1992 -93 the first ERAF shift took place so the City was hit very hard and in trying to come up with new revenues staff thought a good opportunity was to increase the room tax from 9% to 10 %. In order to do that it needed the assistance of the hotels and basically there was an agreement made that if the hotels would support the citywide election, that the City would share 50% of that 1% increase but place a cap on it. He said what makes it complicated is the formula for that last 1% going from 9 to 10, so they get 15.7% because of the way that last 1% is treated and divided. Mayor Ridgeway explained that the Council does not take action at Study Sessions. Mr. Bludau explained that the current agreement expires at the end of February so it would be up for renewal "as is" or as is being proposed. Bruce Brainerd reiterated where the CVB has been over the last three years and the competitive environment they're in. He spoke in support of Ms. Hayden's comments about a tax increase potential and feel now is not the time for a tax . increase given the competitive nature of business today for the groups coming in Volume 56 - Page 581 1� City of Newport Beach Study Session Minutes January 13, 2004 and the pool of funds. He said they are already negotiating away so many things at the property level to get the groups to come in because of the increase in the room inventory both in Huntington Beach and along the coast. In terms of overall business environment, he said they expect to see pretty much the same from the last twelve months coming into 2004. In addition there are two properties that have major renovations in progress (Hyatt Newporter and the Marriott Newport Beach), which will have some impact on the overall TOT. He reiterated that it is a very competitive environment and the City has inventory out of service and decreased revenues. He said they would appreciate any support the City can provide them in marketing the city. Mayor Ridgeway questioned how many properties the CVB promotes. Ms. Hayden reported that they promote seven major properties and also promote all the inns and boutique properties, so all the properties are promoted. She said they have both the visitor segment and also the meetings. She noted all the information available on their website and all the things they do to promote visitors to come to Newport Beach. She said they also promote to bus groups and youth groups and noted that about 40% of their efforts go to the individual traveler. Council Member Bromberg reiterated the state budget situation and noted that he's had his own business for over 30 years and said that if he's learned anything over those years it is that you have to spend money in order to make money, even in the hard times, and probably have to spend more and try harder during those times because of the greater competition. He said he favored a short -term relief, a quick infusion of some money, but the competition is fierce. He said he's also been a proponent of a 1/2 percent increase in TOT, however right now that doesn't seem feasible in the group market. As far as the group market, he said he feels strongly that you have to spend money to make money. He said he's comfortable with the very capable CVB staff and would support the stepped program and would like to see it come back as an agenda item. Council Member Webb asked what the TOT comparisons are with the City, Huntington Beach, Costa Mesa and Irvine. Mr. Everroad clarified that the visitor typically doesn't distinguish between any other fee that is imposed by the hotelier, self- assessed by the hotelier, or imposed by the City to fund conference and visitor bureaus, business improvement districts (BID), etc. He said the numbers he will be conveying are a total of the TOT and VSF or BID that the guest may be paying. Anaheim is at 15 %, which is the high end of those surveyed. Costa Mesa has a 6% TOT and seven of the hotels in that community have a self- assessed 2% BID that funds their marketing efforts. Laguna Beach has a 10% TOT and a 2% BID, 50% of which funds the CVB and 50% of which funds various arts programs within the community. Irvine is at 8% with a 2% BID, 75% of which goes to the Chamber and 25% to the City. Huntington Beach is at 10% TOT and a 1% BID and they also fund an additional $250,000 out of TOT. Garden Grove is at 13 %. Palm Springs has a range of 11 -1120A for hotels without convention facilities and 12- 1/2% for hotels with convention facilities. San Diego is at 10 -1/2 %. He reiterated that these figures are what the hotelier imposes, so in Newport Beach it would be recited as 9% TOT and 1% VSF for a combined rate of 10 %. Volume 56 - Page 582 INDEX City of Newport Beach Study Session Minutes January 13, 2004 INDEX Council Member Webb said that it appears that the only Uity that Newport Beach wouldn't be competitive with is Costa Mesa which is a couple of percent less, however the City is below Laguna Beach, Anaheim and Huntington Beach and about the same as Irvine. Ms. Hayden noted that everyone around Newport Beach with the exception of Costa Mesa is 10 %, so they're comparable. Council Member Webb noted that as far as TOT Huntington Beach is 10% but there is a 1% for the BID and the person paying the bill doesn't know the difference. He asked whether it would be possible for the City to have some sort of BID with the hotels. Mr. Bludau explained that if it were an official TOT increase it would have to go to a vote of the people, but if the hotels decide themselves to basically tax themselves or levy a fee of 112 or 1 percent, they could in effect do that. The City would collect it and rebate it back and it would not require a vote of the people since it would not be a City tax. Council Member Rosansky questioned whether the City collects any "per head' fee that goes into the coffers and is shared by the CVB or is it strictly the hotels that fund this. He asked whether there are other businesses that thrive off the visitors that come to the community. Mr. Everroad reported that there are no other exactions made by the City that fund the CVB. He reported that summer rentals do pay TOT and a VSF which is imposed on 525 vacation rental properties. They collect the same percentage from the room rental rate as do the hoteliers and it also funds the CVB as well. Ms. Hayden noted that the City enjoys the benefit of the sales tax from retail so there is a multiplier effect and they do generate more than room tax, however it doesn't come back and impact them. Mr. Everroad explained that the City receives about 13% of the total sales tax which is 1% of the 7314% that is imposed by the retailer. He also noted that the City does impose a Marine Charter passenger tax on the charter industry which goes into the general fund and there is no subvention to CVB of those monies. Council Member Heffernan questioned the CVB on the proposed Marinapark Hotel and asked whether it adds to their pool or if it is more competition. Ms. Hayden stated that if it does come to fruition it has been estimated that it will bring in $lm in revenue to the City and it would be a benefit. She reiterated that with the Inn at Pelican Hill, which won't come to fruition for 2 -3 years, they are already doing the pre -sale for that, which will have a very positive impact for the City. Council Member Heffernan asked why the TOT is going down. Ms. Hayden reported that there is more inventory in a no- demand market and the planners are taking advantage of the excess inventory and driving a harder bargain with the hotels so the profit margin with the hotels is going down. This decreases the room rate and there is more availability. She said they're hoping to generate more revenue in the next few years. She stressed the importance of the redevelopment of the two properties since it will have a very positive effect because they'll be more sellable. She indicated that if the Council approves their proposal they will use the new funds for more trade shows, by going to more feeder markets, would enhance their webpage by making it a booking engine, and host more familiarization promotions. In response to Mayor Ridgeway, Ms. Hayden reported that the CVB has 11 employees and one contractor in San Francisco, as well as lead generating firm: and consultants. She stated that they have seen a definite increase in emai use, and noted that the groups use the website for their preliminary researd Volume 56 - Page 583 0 1] 0 L� City of Newport Beach Study Session Minutes January 13, 2004 and the RFP process. She noted that their reserve fund is $800,000 and this year they've spent about $300,000 of it. She also noted that the CVB has a reserve policy in place which requires them to keep 1/2 of their operating costs in reserve. As far as the impact of 9.11, Ms. Hayden reported that 2001 was the biggest year for Newport Beach — over $10m. 9 -11, the Afghan war, the loss of consumer confidence, the stock market and the security alert changes have all impacted the industry, and they feel the turn around will be towards the latter part of 2004. Mayor Ridgeway agreed with Council Member Bromberg's comments about spending money to make money, however reminded the CVB of the City's PERS obligation from 2004.2008 that will ratchet anywhere from $lm - $3m to the City's general fund cost and there is no corresponding return. He said the question for most cities is a cut to services, and in their case, maybe they could look at less employees and more productivity. He said he isn't suggesting they go that route; however he pointed out that they've incorporated a dynamic economic model when talking about loss but not when talking about the future of these additional improvements and the resort in Newport Coast and the proposed Marinapark hotel, which would generate $150,000 to their bottom line. He stated that from his reference point it does need to be brought back for a Council decision; however he said that as of today he has a greater obligation to the citizens to look at the PERS costs than to the CVB's request. He said, however, that he does like the simplicity of their request and recognized that they're using their reserves. He said he feels the economy is improving and feels their revenue will increase even if the new hotels are not built. Regarding the self - imposed fees, he said they could negotiate that. He reiterated that the Council's obligation is to the upcoming budget for 2004 -05 and the PERS component is a very significant consequence to everyone. 3. PRESENTATION FROM CORONA DEL MAR CENTENNIAL FOUNDATION — PLANNING FOR CORONA DEL MAR CENTENNIAL ACTIVITIES AND EVENTS. Peggy Fort said she's here to report on the progress and provide an update for the Corona del Mar (CdM) Centennial celebration. She said she serves as the Executive Director of the CdM Centennial Foundation, which is the leading body that is organizing the celebration on behalf of the community. She voiced her appreciation to the people she's been working with since January of 2003. She noted that they've worked very diligently as a group to include the entire community in putting together a celebration for them, as well as a prelude to the City of Newport Beach's centennial in 2006. She said there are a number of residents, community leaders and business leaders from CdM in attendance to show their support of what has been planned so far. She provided a brief background of the foundation. Mayor Ridgeway questioned whether this item was to discuss the Parks, Beaches & Recreation (PB &R) Commission action and voiced concern about the limited amount of time to discuss this item. He noted that he's had a lot of communication about the proposed statue at Inspiration Point. Ms. Fort reported that one of the aspects of the Centennial is the proposed community enhancement plan for Inspiration Point. The plan involves a time Volume 56 - Page 584 INDEX (100/2004) City of Newport Beach Study Session Minutes January 13, 2004 INDEX capsule monument that the committee would like to erect to honor the centennial and to inspire future generations to respect the preservation of the ocean and to also combine some of the themes that the centennial has looked at, which include art, culture and the opportunity for the community to come together. She noted that the committee went to the PB &R meeting last Tuesday to present the conceptual site plans. At that meeting the Commission decided not to vote on the issue and asked the committee to come back with some specific outreach verification (i.e. letter campaigns and answers to questions they had). She stated that it's important to stress that the committee is comprised of over 200 members that are residents of CdM and noted that they have received their official 501c3 status to support fundraising for the centennial. She reiterated that they've done an extensive outreach campaign throughout the month of December. She presented information regarding their campaign as well as information about the time capsule monument. Ms. Fort reported that the group originally looked at an area along Ocean Boulevard as a potential site for something like this to honor the centennial because in many ways it is a historic site in the community. This is meant to enhance the Inspiration Point location, to fit into what is already there, and to improve upon it and not take away or impede views. She said they originally looked at a site at the corner of Larkspur and Ocean Boulevard and in early December they held a meeting to discuss it. Through the recommendation of the residents at that meeting the committee was asked to consider Inspiration Point as the location. At this point in time she said they aren't able to look at another option as far as location because it will make it impossible for the project to come to fruition because of the amount of time left before the centennial. She said the goal is to have the time capsule monument completed by the ground breaking event for the centennial, which is October 14th. She said they looked at a number of ideas for the art sculpture portion of it and noted that the artist chosen meets the criteria that the Centennial Foundation established in regard to the work that this artist is doing. She noted that dolphins are unofficially the mascot of CdM and people will have an opportunity to purchase bronze plates to help fund the monument. In response to Council Member Heffernan, Ms. Fort reported that in order to complete the monument by the groundbreaking ceremony they would need to give Wyland's organization a down payment of $40,000 by April 16L. She explained that in setting the date for the celebration the committee looked at the entire year and noted that the first part of July is officially when CdM was purchased from The Irvine Company, however it was difficult to plan a big beach event and celebration during the middle of summer, so they chose the October date for the celebration. She said if they are to move forward with the monument they will need to get approval in February. Mr. Bludau said the Committee needs to go back to PB &R for approval. City Attorney Burnham explained that depending on whose property it is they would need approval of the City or the property owner to install the monument. He explained that according to the Public Works Director a good portion of Inspiration Point may be owned by the State of California. I£ it is owned by the State the City would need to review the agreement relative to Corona del Mar State Beach and what the obligations are. I£ it is City property, Mr. Burnham . indicated that the Council would need to approve an Encroachment Permit. He explained that since PB &R advises the City on the use of public lands and Volume 56 - Page 585 r -1 �J 0 City of Newport Beach Study Session Minutes January 13, 2004 parks, the question was whether this particular location would be an appropriate one for the installation of a sculpture of this nature. In reference to questions about the height limit, Mr. Burnham indicated that this could potentially be an issue that needs to be addressed, however it will depend on whether it's City or State property and depending upon whether it's right of way or fee property it may be that the top of curb height limit which is applicable to structures along Ocean Boulevard might be applicable to this installation. He said once his office has all the information they will offer an opinion on this issue. As far as formal notification he indicated that the encroachment permit process doesn't require notification, however there are specific requirements in the code regarding noticing for a variance. Even though it's not required for an encroachment permit, the City Council or staff could notify people within whatever radius is deemed appropriate. He noted that the Recreation & Senior Services Department notified residents within a three block radius of the proposed site for the PB &R meeting. He noted that there isn't a procedure in place that would require notification if the Council chose to exceed the height limit on a project. In response to Council Member Bromberg's questions about what the group has done as far as community outreach in the neighborhood Ms. Fort indicated that in early December the committee hosted a meeting on Ocean Boulevard and personally walked and invited neighbors, as well as sent a mailing to over 225 residents within the impact zone. Approximately 70 people attended the meeting. She said they also had a booth at the CdM Christmas Walk and got 30+ signatures in support of the project. She noted that the outreach has been ongoing since January and they've been publicizing their committee meetings and working hard to bring the community together in the whole process. As a result of the PB &R Commission meeting they are going to be hosting another neighborhood meeting at the Reed's home, which is two homes away from Inspiration Point on Ocean Boulevard and also will be doing a very focused letter, email campaign and signature campaign befor the PB &R Commission meeting. At the neighborhood meeting there was no one in opposition to the project. Council Member Webb said he thinks the Ocean Boulevard right of way is an extra 40 feet beyond the curb so if there is any doubt about whether it's in the right of way it can be moved five foot closer to the street to make sure it's in the right of way rather than worrying about the State Lands Commission or whoever else is involved. Rather than worry about who should be noticed everybody should be noticed and the City needs to make sure that the residents that are going to be most impacted by the views are given the opportunity to come forward and speak. Recreation & Senior Services Director Knight reported that her department sent out notices 2 -112 weeks before the Christmas holiday, as well as the Friday before the meeting, to residents three blocks in either direction of the location and one full block back (250 notices). She reiterated that they were mailed by the City and the first was a postcard and the second notice was a copy of the agenda. Mayor Ridgeway indicated that this isn't clear in the minutes and it should be. Bruce Colbright said he thinks the monument is a great idea; however it needs a Volume 56 - Page 586 INDEX City of Newport Beach Study Session Minutes January 13, 2004 INDEX location that is best suited for it. He noted that CdM has very few view parks and the committee should find a more suitable park where maintaining the view is not a principal issue. He said a monument of the size proposed will interfere with the use of the park. He distributed photos of Inspiration Point as well as pictures of alternative locations (Oasis Senior Center, median strip on Coast Highway at the Marguerite intersection, Begonia Park at the corner of Bayside and Carnation, and Grant Howald Park). He said a monument like this needs a prominent location. He said that Inez Howald, wife of Grant Howald, who was a member of the group who purchased the parcel and donated it to the City to be preserved as open space for the view, mentioned that the deed restricts the parcel such that it was to be preserved in perpetuity with no structures on the site. He said zoning may also be an issue since it prohibits the loss of any public views. He said that in essence you don't enhance a world class view by blocking it. He said there may also be issues with earthwork and the City needs to make sure they've addressed the geology of the site. Helen Anderson noted that she spoke with Inez Howald who said that the deed definitely stipulated that there were to be no structures on that property. She also noted the number of slides on the terrain. Council Member Nichols noted that one of the PB &R Commissioners surveyed people in the area and all five of the people he surveyed thought Inspiration Point was an inappropriate location and noted that he felt he surveyed a wide range of people. He said he has some of the same feelings and stated that it is a wonderful project that has merit and it should be placed somewhere in the business community where the supporters are. He noted that Grant Howald Park is too off the beaten path. Mayor Ridgeway noted that Council has asked for a legal opinion regarding the height and said he would be surprised if there were a deed on the property. He said he wished Phil Sansone was here, however he said he felt he would have supported it since he was very pro- Corona del Mar. He said the City and the Centennial Foundation have done a good job of noticing the public; however he said he'd like to hear from the people who are directly impacted across the street or immediately adjacent to the project. He said it's a gorgeous project and it should not be in the back parks. As far as geology issues he said this will be easy to engineer, however the greater issue in his mind is the three foot height limit that appears to be violated somewhat regularly on Ocean Boulevard by park benches, spyglasses, etc. He noted that PB &R brought up a lot of red herrings that need to be ferreted out and a legal opinion is needed regarding the height and zoning. He also said everyone in the community that is here and listening should be notified that PB &R will be hearing this on February 3, 2004. He asked that someone from City staff find out who the 5 people are that the commissioner spoke to that opposed the project. PUBLIC COMMENTS — None. ADJOURNMENT — at 6:10 p.m. Volume 56 - Page 587 0 0 0 0 City of Newport Beach Study Session Minutes January 13, 2004 The agenda for the Study Session was posted on January 7, 2004, at 2:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 56 - Page 588 INDEX City of Newport Beach Study Session Minutes January 13, 2004 INDEX THIS PAGE LEFT BLANK INTENTIONALLY 0 0 Volume 56 - Page 589 J CITY OF NEWPORT BEACH City Council Minutes ����� Regular Meeting January 13, 2004 - 7:00 p.m. INDEX STUDY SESSION — 4:30 p.m CLOSED SESSION — 6:10 p.m. A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Absent: Adams (excused) C. CLOSED SESSION REPORT - City Attorney Burnham reported that the City Council, with Council Member Adams absent and Council Member Nichols voting no, approved proposed settlements with three plaintiffs in the Alkayali v. Trenton Veches case. The proposed settlements are subject to the approval of the court. As soon as the proposed settlements are final and to the extent permitted by law because minors are involved, the fact of approval and the substance of the agreements will be made available in the office of the City Clerk to any person who inquires. City Attorney Burnham reported that the City Council also discussed litigation entitled Michelle G. v. City of Newport Beach. Lastly, the City Council met with, and gave direction to, their labor negotiators with respect to the Marine Safety Officers Association and the Police Employees Association. D. PLEDGE OF ALLEGIANCE — Council Member Rosansky E. INVOCATION — Council Member Don Webb F. PRESENTATIONS Junior Chamber of Commerce Proclamation. Mayor Ridgeway presented a proclamation to Anna Lisa Biason, President of the Newport Beach Junior Chamber, Lory Sullivan, Secretary of the 2004 Junior Chamber Board, and Wayne Wright, Vice President of Management, proclaiming the week of January 1S to 24, 2004, as Jaycee Week. Ms. Biason thanked the City for the acknowledgement. Demonstration of electronic voting system and video, "How to Vote Using the eSlate ". City Clerk Harkless announced that the eSlate system will be implemented in Orange County for the 2004 primary election and, pending final approval by the Board of Supervisors, the Newport Beach City Clerk's office will be one of ten cities and five malls participating in an early voting program from February 2 to 22, 2004. City Clerk Harkless stated that a demo unit is currently set up in the City Clerk's office for those wanting to test out the new system. Volume 56 - Page 590 City of Newport Beach Regular Meeting January 13, 2004 INDEX In response to Mayor Ridgeway's question, City Clerk Harkless stated that a voter will be held to voting only once because the participating entities will have access to the County's database. City Clerk Harkless showed the video, which provided an overview of how the system works. Council Member Webb stated that he tested the eSlate system when it was on display in the Council Chambers lobby on December 9, 2003, and that it was easy to operate. In response to Council Member Heffernan's questions, City Clerk Harkless stated that the system should mean that the election votes will be counted faster. She wasn't aware of any other counties using the eSlate system. In response to City Manager Bludaus question, City Clerk Harkless stated that she wasn't aware of any change to the absentee ballot process. G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): • Referring to the City Council's request at the December 9, 2003, meeting, Council Member Heffernan asked if the Harbor Commission is capable of making a recommendation on the pier permit fees, without having the appearance of a conflict of interest. City Attorney Burnham stated that if a member of the Harbor Commission has a pier permit, that member would recuse himself from voting on the matter. • Council Member Heffernan requested that the schedule of reports and public input opportunities for the Marinapark hotel be outlined. He also requested that information be provided on what the vote in November 2004 will mean and what it will decide. • Council Member Heffernan requested that a report on the City's budget and the effects of the State budget be presented at a future City Council meeting. • Council Member Rosansky thanked the Chamber of Commerce for the great job they did with the 2003 Christmas Boat Parade. • Council Member Rosansky requested that the prioritization of park development in the City be addressed at the City Council meeting of January 27, 2004. • Council Member Bromberg stated that at the City Council meeting on December 9, 2003, the City adopted the 1st Battalion, lat Marines from Camp Pendleton, and it is hoped that it will be the beginning of a long- • term relationship. In that regard, he encouraged the public to send letters and cards to the Marines who are deployed in Iraq, at the following address: Volume 56 -Page 591 0 �J City of Newport Beach Regular Meeting January 13, 2004 Commanding Officer BLT 1/1 UIC 39711 FPO AP 96609 -9711 • Council Member Webb acknowledged the efforts of the Utilities Department employees who worked through the recent weekend on two waterline leaks and a valve service leak. He noted that the upcoming budget may need to address replacement of the aging water lines. • Council Member Webb requested that the City Council establish a Centennial Committee for the City's Centennial in 2006. • Council Member Webb requested that the City work with CalTrans with regard to the parking area adjacent to the Arches Bridge and across from the Arches Restaurant. He stated that he wants it to remain available for public parking. I. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. Item removed from the Consent Calendar by a member of the audience. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCE FOR INTRODUCTION 3. AMENDMENTS TO THE NEWPORT BEACH MUNICIPAL CODE REQUIRING USE OF FRANCHISED SOLID WASTE HAULERS FOR DEMOLITION ACTIVITIES. Continue to February 10, 2004. ORDINANCES FOR ADOPTION 4. Item removed from the Consent Calendar by Council Member Heffernan. 5. Item removed from the Consent Calendar by Mayor Ridgeway. 6. Item removed from the Consent Calendar by Council Member Nichols. RESOLUTIONS FOR ADOPTION 7. ACCEPTANCE OF THE CITY OF NEWPORT BEACH DESIGN . CRITERIA, STANDARD SPECIAL PROVISIONS AND STANDARD DRAWINGS FOR PUBLIC WORKS CONSTRUCTION, 2004 EDITION AND ADOPTING THE STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION "GREENBOOK" 2003 Volume 56 - Page 592 INDEX (100 -2004) (100 -2004) City of Newport Beach Regular Meeting January 13, 2004 INDEX Volume 56 - Page 593 EDITION. 1) Adopt Resolution No. 2004 -1 approving the publication of lqw the City of Newport Beach "Design Criteria, Standard Special Provisions and Standard Drawings for Public Works Construction ", 2004 Edition; and 2) adopt Resolution No. 2004 -2 adopting the "Greenbook Standard Specifications for Public Works Construction ", 2003 Edition. 8. Item removed from the Consent Calendar by Council Member Nichols. 9. RESOLUTION ADJUSTING STREET SWEEPING PARKING (100 -2004) RESTRICTIONS ON VISTA DEL ORO AND MAR VISTA DRIVE - Adopt Resolution No. 2004 -4 adjusting street sweeping operation and related NO PARKING restrictions on Vista Del Oro and Mar Vista Drive from 8:30 a.m. to 12:30 p.m. Thursdays to 9:30 a.m. to 12:30 p.m. Thursdays; and 2) rescind Resolution No. 2003 -32. CONTRACTS AND AGREEMENTS 10. CAMEO SHORES SEWER FORCE MAIN REPLACEMENT - C -3646 AWARD OF CONTRACT (C- 3646). 1) Approve the plans and Cameo Shores specifications; 2) award the contract (C -3646) to GCI Construction for the Sewer Force total bid price of $177,905 and authorize the Mayor and the City Clerk to Main execute the contract; 3) establish an amount of $17,000 to cover the cost Replacement of unforeseen work; and 4) approve a budget amendment (BA -022) in the (381100 -2004) amount of $49,865.63 from various accounts to Account No. 7531- • C5600728. 11. BALBOA VILLAGE IMPROVEMENTS PHASE 2 — COMPLETION C -3527 AND ACCEPTANCE OF CONTRACT (C- 3527). 1) Accept the work; Balboa Village 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the Improvements City Clerk to release the Labor and Materials Bond 35 days after the Phase 2 Notice of Completion has been recorded in accordance with applicable (381100 -2004) portions of the Civil Code; 4) release the Faithful Performance Bond one year after Council acceptance; and 5) approve a budget amendment (BA -025) appropriating $64,000 in the Balboa Village Plan Phase 2 Account No. 7161- C5100543 from the CDBG surplus fund balance. MISCELLANEOUS ACTIONS 12. BUDGET AMENDMENT TO ACCEPT A CHECK FROM (100 -2004) PROLITERACY, NEWPORTIMESA AND TRANSFER FUNDS TO APPROPRIATE ACCOUNTS FOR LITERACY SERVICES. Approve BA -023 in the amount of $15,000. 13. Item removed from the Consent Calendar by Council Member Heffernan. 14. Item removed from the Consent Calendar by Council Member Nichols. 15. Item removed from the Consent Calendar by Council Member • Heffernan. Volume 56 - Page 593 • City of Newport Beach Regular Meeting January 13, 2004 Motion by Council Member Brorbere to approve the Consent Calendar, except for those items removed (1, 4, 5, 6, 8, 13, 14 and 15). The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams J. ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF DECEMBER 9, 2003. Jim Hildreth stated that the minutes of the regular meeting of December 9, 2003, do not correctly reflect his comments regarding the extension of a joint powers agreement with the County for mooring administration. Additionally, Mr. Hildreth stated that his comments during Public Comments were also incorrectly recorded, as were those of Mayor Ridgeway. Motion by Council Member Bromberg to waive reading of subject minutes, approve as written and order filed. . The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 4. ORDINANCE EXTENDING NON - EXCLUSIVE CABLE TV FRANCHISES WITH ADELPHIA AND COX COMMUNICATIONS. Council Member Heffernan asked how much had been spent by the City on the extension of the franchise agreements. City Manager Bludau reported that the contract with the Buske Group to conduct the community needs assessment cost $45,000, and $20,000 had been spent on the contract with William M. Marticorena for legal counsel. He stated that William M. Marticorena continues to work for the City. Council Member Heffernan announced that the City receives a 5% franchise fee from the cable TV companies for crossing the right -of -way, and that the subscribers in the City pay over $20 million in cable TV charges per year. He reminded the public that the City has little discretion over what is being negotiated with the cable TV companies due to the Federal Telecommunications Act, but that the City will continue to do its best and that it is hoped that an agreement will be reached in July of the current . year. Jim Hildreth stated that Adelphia and Cox Communications both perform a service for the City, noting that they televise the City Council Volume 56 - Page 594 INDEX Ord 2003 -19 Cable TV Franchises (421100.2004) City of Newport Beach Regular Meeting January 13, 2004 meetings. He stated that the televised broadcasts of the meetings are more accurate than the minutes. He suggested that the terms of the agreements with the cable TV companies be expanded, so that the video tapes of the meetings are more accessible to the public. Motion by Council Member Heffernan to adopt Ordinance No. 2003- 19 extending the current franchise agreements with Cox and Adelphia until July 27, 2004. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams Motion by Mavor Rideeway to limit comments by the public on the items removed from the Consent Calendar at the current meeting to three minutes. Mayor Ridgeway explained that the items on the Consent Calendar are usually ministerial matters, while the other items on the agenda usually require more debate, more discussion and more citizen input. City Attorney Burnham stated that if the City Council wants the change to apply to future meetings, a change in the policy will need to be made. Robert Walchli expressed his concern for making such a change and spoke in opposition to the motion. Council Member Bromberg noted that public speakers can always request additional time from the Mayor. Mayor Ridgeway agreed and acknowledged that some items on the Consent Calendar should possibly not be on the Consent Calendar. He expressed his concern for the participants who are shortchanged when their items are heard so late in the evening. Dolores Otting agreed that many items are often removed from the Consent Calendar, but noted that some items should probably not have been on the Consent Calendar to begin with. She disagreed with reducing the time allowed public speakers. Council Member Heffernan suggested that possibly the more extensive items should be discussed prior to the Consent Calendar. City Attorney Burnham stated it would require a change in the policy regarding the order of items on the agenda. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 5. PARK PATROL AUTHORITY TO WRITE ADMINISTRATIVE CITATIONS. Volume 56 -Page 595 INDEX 1(100 -2004) 0 is E City of Newport Beach Regular Meeting January 13, 2004 At the request of Mayor Ridgeway, Recreation & Senior Services Director Knight reported that the ordinance would allow the park patrol officers to write administrative citations for Chapter 5.10 of the Newport Beach Municipal Code (NBMC), which deals with special event permits, and Chapter 11.04, which deals with conduct in the parks. She further explained that special event permits are issued with conditions, and that the officer would be able to write citations for a violation of any of the conditions. She stated that the citations for conduct in the parks would be written for infractions of the City's current regulations. Mayor Ridgeway asked if the park patrol program has continued to be self - funding. Recreation & Senior Services Director Knight reported that it has and that the funding sources for the program include a new fee for youth sports organizations and increased fees for park rentals. She noted that an increase in the fees for special event permits will also be implemented in the future. Robert Walchli expressed his support for enabling the new park rangers to issue citations for infractions. He stated that the issuance of citations is generally a discretionary action, but he's confident that the rangers have the experience and maturity to do so when appropriate. He stated that a verbal warning should be issued first and that the ranger should have the ability to enforce the rules if the education attempt fails. Mr. Walchli stated that the park patrol program should be proactive and stop problems before they get out of hand, and the ability to issue citations is a needed tool. In closing, he expressed his support for the program in protecting the residents and retaining their quality of life. Dolores Otting asked how the park rangers are reached if needed. Recreation & Senior Services Director Knight stated that dispatch at the Police Department can be called and the phone number of the park rangers will be given to the caller. The number to dispatch is 644 -3717 and the number to park patrol is 795 -2381. Motion by Council Member Brornbere to adopt Ordinance No. 2003- 20 amending Section 1.12.020 of Chapter 1.12 of the Newport Beach Municipal Code to authorize Park Patrol Officers to issue citations. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 6. LANDMARK BUILDINGS, CODE AMENDMENT NO. 2003 -009; AND BALBOA THEATER, 707 EAST BALBOA BOULEVARD, GENERAL PLAN AMENDMENT NO. 2003 -006 AND LOCAL COASTAL PROGRAM AMENDMENT NO. 2003 -005 (PA2003 -212). City Attorney Burnham stated that the only item before the City Council Volume 56 - Page 596 INDEX (100 -2004) City of Newport Beach Regular Meeting January 13, 2004 at the current meeting is the code amendment. He stated that action on the general plan amendment and the local coastal program amendment was taken at the City Council meeting of December 9, 2003. Council Member Nichols recused himself from voting on the item. As a member of the public, Council Member Nichols confirmed with City Attorney Burnham that the code amendment increases the height allowance to 55 feet. Council Member Nichols stated the standard height of commercial buildings in Corona del Mar is 32 feet, and that increasing the height of landmark buildings to 55 feet also goes against the requirement that the buildings retain their original shape. He stated that it might work for the Balboa Theater, but isn't necessarily appropriate for all theaters. He suggested that the amendment apply to the Balboa Theater only and that it could be considered for the other theaters in the future if it works there. Phil Arst stated that he wanted to address the general plan amendment. City Attorney Burnham stated that his comments would need to address the code amendment, but noted the letter from Mr. Arst, written on behalf of GreenIight and dated January 12, 2004. City Attorney Burnham stated that staff will be preparing a report to the City Council for the meeting of January 27, 2004, which will address the concerns in the letter regarding intensity and floor area limits. After a brief conversation, Mayor Ridgeway suggested that Mr. Arst contact the City Attorney or himself to discuss the matter further. Motion by Council Member Bromberg to adopt Ordinance No. 2003- 21 amending Title 20 of the NBMC. Council Member Heffernan asked why the Lido and Port Theaters were a part of the ordinance. Planning Director Temple stated that the item is unconventional in its structure, but it was decided to use the landmark building provisions of the nonconforming chapter of the zoning code to address the issue related to flexibility for height limits at the Balboa Theater. She stated that the code section would apply to all landmark buildings, but that it only provides the opportunity for a use permit to be applied for. Council Member Heffernan further confirmed with Planning Director Temple that the amendment deals with the findings that would be required and does not provide for an automatic entitlement. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Mayor Ridgeway Noes: None Abstain: Nichols Absent: Adams 8. INITIATION OF A MUNICIPAL CODE AMENDMENT TO TITLE 20 RELATED TO THE SIZE OF ELEVATOR SHAFTS THAT MIGHT EXCEED APPLICABLE HEIGHT LIMITS AND OFF - STREET PARKING REQUIREMENTS FOR MEDICAL AND Volume 56 - Page 597 `11�117�/7 1 (100 -2004) 9 0 City of Newport Beach Regular Meeting January 13, 2004 DENTAL OFFICES. Council Member Heffernan asked why the matter is before the City Council at this time. Planning Director Temple stated that when medical facilities were built in earlier decades, the nature of the delivery of medical services was quite different than it is today. She stated that over the past ten years, City staff has noticed a shortfall of parking at the medical complexes and is, therefore, recommending that a study be done to determine if a different ratio would be appropriate. Council Member Heffernan asked if any pending medical projects are being focused on. Planning Director Temple stated that there are pending projects, but that they would not be held up during the process.. Council Member Heffernan asked how it would apply to Hoag Hospital. Planning Director Temple stated that Hoag's permissions are based on demonstration of parking adequacy for each phase of development. She stated that there is a separate criteria used for Hoag. Mayor Ridgeway stated that parking requirements for certain uses have changed over the past ten years and, in this case, the Health Maintenance Organizations (HMO's) have created an increased demand on the doctor's offices. He stated that the amendments are long overdue. Council Member Nichols agreed that more parking is needed and that this will begin to address the problem. Motion by Council Member Heffernan to adopt Resolution No. 2004 -3 initiating amendments to Title 20 of the NBMC. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 13. APPROVAL OF ORANGE COUNTY MUSEUM OF ART BANNERS — ENCROACHMENT PERMIT N2003 -0475. Council Member Heffernan stated that the request to place banners Citywide for a non -City event seems to be unique. City Manager Bludau stated that he couldn't say if future requests will be made, but that banners are an effective way to advertise. Council Member Heffernan expressed his concern for less appropriate requests in the future. City Manager Bludau stated that the City Council has the authority to deny or approve such requests. Mayor Ridgeway added that the Taste of Newport and the Jazz Festival have made similar requests in the past. He noted that the banners are . expensive to buy and install, and he wouldn't have a concern for a trend being started by approving the current request. Council Member Webb stated that he believes that the Orange County Volume 56 - Page 598 INDEX (100 -2004) City of Newport Beach Regular Meeting January 13, 2004 Museum of Art has installed banners in the past. Council Member Heffernan asked if the City would be required to grant future requests that meet the City's criteria by granting this one, referring to 1st Amendment rights. City Attorney Burnham stated that the City Council would have to treat all requests equally. Council Member Bromberg stated that the Orange County Museum of Art is located in the City, and noted that the Newport Ocean Sailing Association (NOSA) is also expected to request banners in the future for their event. Dolores Otting stated that the entities pay for the banners, the installation, the insurance and the $430 encroachment fee. She referred to a prior experience in the City and suggested that what other cities charge should also be looked at, in case Newport Beach is undercharging. Mayor Ridgeway stated that the City is trying to promote community interests and not commercial interests. Paul Glowienke stated that he is in support of the Orange County Museum of Art installing banners, but urged the City Council to limit the size and scope of the Bank of America sponsorship presentation on the banners. Council Member Bromberg asked Mr. Glowienke if he'd seen the proposed banners. Mr. Glowienke responded in the negative. Council Member Bromberg stated that the Bank of America logo is not prominent. Mr. Glowienke also asked how the City's fee is established. Public Works Director Badum stated that encroachment fees are based on the City's actual cost. Robert Walchli stated that the policy should possibly be looked at. He noted that $400 seems fairly cheap for advertising, and that it could result in more commercial advertising which he didn't feel would be desirable. He stated that more regulation may be needed. Motion by Council Member Bromberg to conditionally approve the request of the Orange County Museum of Art for the installation of 99 banners from January 16, 2004 to April 25, 2004 for the Annual Art Banner program. The motion carried by the following roll call vote: Ayes: Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: Heffernan Abstain: None Absent: Adams 14. COMMENTS ON ENVIRONMENTAL REVIEW FOR PROPOSED SCHOLLE PROJECT (JAMBOREE ROAD AND FAIRCHILD ROAD) AND OTHER PREVIOUSLY APPROVED PROJECTS IN THE IRVINE BUSINESS COMPLEX. Volume 56 - Page 599 INDEX (100 -2004) 0 u City of Newport Beach Regular Meeting January 13, 2004 Council Member Nichols stated that the item pertains to very large complexes at the City's border, and that any traffic analyses should include how the traffic will affect Newport Beach. Mayor Ridgeway stated that the City of Irvine has, pursuant to a master environmental impact report, approved eight projects in the last several years. He stated that it is important for Newport Beach to evaluate and review development projects adjacent to Newport Beach. Mayor Ridgeway commended the Environmental Quality Affairs Committee (EQAC) and the Planning Department for taking a look at a very serious issue in the airport area. Assistant City Manager Wood also commended EQAC. She noted revision to Page 10 of the letter that was distributed prior to the meeting. Council Member Bromberg also commended EQAC for the effort put into the letter and the review of project. He stated that they are making a difference. Robert Hawkins, EQAC Chair, agreed with the revision to Page 10. He additionally suggested that on Page 1 in the second paragraph, that it be noted that the committee members "prepared a report" instead of the committee members "compiled a summary of concerns ". He noted that • EQAC worked very hard in reviewing the information and preparing the report. Mr. Hawkins stated that the committee focused on the problem of making the traffic improvements to the north while the projects and trips are being transferred to the south. Mr. Hawkins stated that the ability of EQAC to comment on non -City environmental documents should be permitted without a request from staff. Motion by Council Member Bromberg to direct staff to transmit comments prepared by EQAC to the City of Irvine; and direct staff to make additional comments on the revised traffic study and other studies that may become available prior to public hearings. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 15. BUDGET AMENDMENT TO APPROPRIATE ADDITIONAL FUNDS FOR RESIDENTIAL REFUSE COLLECTION SERVICES IN THE NEWPORT COAST AREA. Council Member Heffernan asked why there was such a budget shortfall • and, secondly, based upon current revenue, if the increase in property tax revenue from Newport Coast exceeds the budget amendment to pay for the added trash bill. City Manager Bludau responded in the affirmative to the second question. In response to the first question, he stated that Volume 56 - Page 600 INDEX (100 -2004) City of Newport Beach Regular Meeting January 13, 2004 INDEX it's a moving target and that the City's estimates will always be a little behind what is actually occurring. Motion by Council Member Heffernan to approve a budget amendment (BA -024) to appropriate additional funds in the amount of $147,700 to cover the cost of residential refuse collection services in the Newport Coast area. Council Member Nichols stated that the rate of construction in Newport Coast isn't entirely under the City's control. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams K. PUBLIC COMMENTS • Paul Glowienke thanked the City Council for the proclamation earlier in the meeting, in support of the Junior Chamber of Commerce. He suggested that each of the council members continue to support the Junior Chamber of Commerce by nominating an individual to join the • Junior Chamber of Commerce. • Robert Walchli stated that he had planned to provide a PowerPoint presentation using the City's projection system, but was informed by City staff that it was not possible. He asked the City Council to consider providing the funds needed to expedite the availability of such technology to the public. Additionally, Mr. Walchli stated that there is a new problem affecting views in Corona del Mar, and explained that a neighbor has installed a canopy on the rooftop deck of his home. Mr. Walchli provided photos and explained that the canopy is, in essence, a third - story structure that exceeds the height limit of permanent construction. Mr. Walchli asked the City Council to adopt an ordinance prohibiting any temporary or permanent structures from exceeding the legal construction height. Mayor Ridgeway requested that the Planning and Building departments look into the matter. • Jim Hildreth referred to a letter, dated November 12, 1998, from Wes Armand, which stated that the mooring Mr. Hildreth is speaking of was approved by the City for that location in 1976 and is listed as a pier permit. Mr. Hildreth stated that fees are not being collected for moorings in the Grand Canal and that the Grand Canal is not bayward. Mr. Hildreth referred to several other documents, which supported the mooring in question as a pier permitted site. • L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Volume 56 - Page 601 • • City of Newport Beach Regular Meeting January 13, 2004 Status report — Ad Hoc General Plan Update Committee (GPUC). No report. Status report — Local Coastal Program Certification Committee. Mayor Ridgeway stated that the LCP Committee will be meeting next on January 21, 2004, at 4:30 p.m. Status report — Newport Coast Advisory Committee. Council Member Heffernan stated that the NCAC met on January 5, 2004, and recommended that the City acquire the view parks in Newport Coast and Coyote Canyon Landfill from the County. He stated that the community center will be the topic of conversation at the next NCAC meeting on February 2, 2004, at 5:30 p.m. Status report — Mariners Joint Use Library Ad Hoc Steering Committee. Council Member Webb stated that there was nothing new to report. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 16. PLANNING COMMISSION AGENDA FOR JANUARY 8, 2004. Planning Director Temple stated that the Planning Commission had two items on their agenda at the January 8, 2004, meeting. She stated that the first item dealt with an appeal of a decision of the Modifications Committee regarding a residence on Mendoza Terrace. The Planning Commission approved the appeal and overturned the decision of the Modifications Committee. Planning Director Temple stated that the other item on the agenda dealt with a significant project on West Coast Highway in the Mariners Mile area. She reported that the Planning Commission approved the proposal for retail and automobile sales on the site. Council Member Nichols stated that he'd like the opportunity to call -up the decision of the Modifications Committee regarding 440 Heliotrope, which occurred in December 2003. Planning Director Temple stated that she would discuss the matter with the City Attorney to determine if relief is possible. Mayor Ridgeway asked for clarification on the requirement that two council members are needed to call an item up for review. City Attorney Burnham stated that staff will look at the policy on call -ups and the situation when there are more than 14 days between City Council meetings. Council Member Bromberg stated that he didn't remember there being a requirement that the call-ups occur at a City Council meeting. N. PUBLIC HEARINGS 17. PA 2003 -149: PREZONING AND GENERAL PLAN AMENDMENTS • FOR ANNEXATION OF AREA 7 (GP 2003 -005 AND CA 2003 -006) AND THE EMERSON STREET AREA (GP 2003 -006 AND CA 2003- 007). Volume 56 - Page 602 (100.2004) (100 -2004) City of Newport Beach Regular Meeting January 13, 2004 INDEX Mayor Ridgeway stated that he would be recusing himself from voting on --Iqw the matter due to a conflict of interest. Larry Lawrence, consultant, stated that in March 2003, the City Council directed staff to prepare an application to annex West Santa Ana Heights, the Santa Ana Country Club and adjacent areas. Preannexation proceedings were previously initiated for Emerson Street. Mr. Lawrence reported that none of the areas currently have zoning or general plan land use designations. The purpose of the proposed action at the current meeting is to apply such designations. He emphasized that the action does not include any action on the actual annexation of the areas. Annexation will require separate approval by the Local Agency Formation Commission (L.AFCO) and final action by the City Council. Mr. Lawrence stated that the proposed amendments have been designed to translate the existing County land use designations into corresponding City designations. Mr. Lawrence noted a typographical error on Page 4 of Exhibit ZA -1 of the staff report. He stated that the site area square feet per dwelling unit in the Medium Density Residential (RMD) district should be "3000" and not "2000 ". City Manager Bludau stated that the issue will return to the City Council at the meeting of January 27, 2004, for second reading of the ordinance, and again at a future meeting for approval of the submission of the annexation application to LAFCO. He noted that the prezoning map may differ slightly from the annexation map, since more territory is prezoned • than may actually be annexed due to the lengthy process. Council Member Bromberg opened the public hearing. Randy Ranck, a resident of "Area 7 ", referred to Exhibit 20.44 -1 of Exhibit ZA -3 of the staff report and stated that his major concern is the Residential Kennel (RK) designated area near the Residential Multiple Family (RMF) designated area, as indicated on the map. He reported that he will soon have his fourth meeting with the Orange County Planning Commission and that the Commission has asked the kennel owners to come up with a means of keeping the dogs quiet between the hours of 10:00 p.m. and 7:00 a.m. Mr. Ranck stated that the kennels are against the common wall of the complex he lives in and the exterior noise from the kennels is above the maximum allowed by the County. May Ranck, a resident of "Area T', expressed her dissatisfaction with the noise from the kennels. She stated that she hoped that the City will be able to provide some assistance. Cal McLaughlin stated that he chaired the volunteer group that circulated the petition that successfully protested the annexation of "Area T' to Costa Mesa. He reported that 77% of the registered voters in the area want to be annexed into Newport Beach. Hearing no further testimony, Council Member Bromberg closed the - public hearing. Council Member Webb asked if Newport Beach currently has an RK zone Volume 56 - Page 603 0 \._J City of Newport Beach Regular Meeting January 13, 2004 Assistant City Manager Wood responded in the negative. Council Member Webb asked if something should be done during the creation of the RK zoning designation that will allow the City to have better control over the noise in such areas. Planning Director Temple stated that the type of noise under discussion would not be regulated by Title 20 of the Newport Beach Municipal Code (NBMC). She stated that nuisance noise issues are addressed in Titles 7 and 10. Council Member Webb asked if the construction of new kennels would be required to meet the requirements of the zoning code. Planning Director Temple stated that it would probably work best for the City to require some type of discretionary permit and that design and development standards could also be looked at. Council Member Webb stated that it might be a good idea to have provisions in the zoning code to deal with new or redeveloped kennel construction. Planning Director Temple further noted that any new kennel would require the issuance of a use permit by the Planning Commission. Per the question of Council Member Nichols, Planning Director Temple stated that the City does not currently allow commercial kennel operations. Further, veterinarian operations are not considered kennels. Motion by Council Member Webb to adopt Resolution No. 2004 -5 approving General Plan Amendment Nos. 2003 -005 and 2003 -006; and introduce Ordinance No. 2004 -1, approving Code Amendment Nos. 2003- 006 and 2003 -007, and as amended to change the site area square feet per dwelling unit in the RAID district from "2000" to "3000 ", and pass to second reading on January 27, 2004. The motion carried by the following roll call vote. Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols Noes: None Abstain: Mayor Ridgeway Absent: Adams 18. VACATION OF PUBLIC UTILITY EASEMENT AT 3209 VIA LIDO. Mayor Ridgeway opened the public hearing. Hearing no testimony, Mayor Ridgeway closed the public hearing. Motion by Mavor Ridgeway to adopt Resolution No. 2004 -6 ordering the vacation and abandonment of the 4 -foot wide utility easement located in Parcel 1 of Newport Beach Lot Line Adjustment No. NBLL95 -2 as described in Exhibit "A" and depicted in Exhibit `B "; and direct the City Clerk to have the Resolution recorded in the Office of the County Recorder. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Volume 56 - Page 604 INDEX (100 -2004) City of Newport Beach Regular Meeting January 13, 2004 Abstain: None Absent: Adams O. CONTINUED BUSINESS 19. REFILLING VACANCIES ON THE GENERAL PLAN ADVISORY COMMITTEE (GPAC) (contd. from 12/09/03). Council Member Webb noted that Barbara Lyon is listed as a District 3 representative, although she lives in District 2. He stated that she lives in the Newport Heights area and the objective for geographical divergence will still be met by her appointment. Assistant City Manager Wood noted that all four nominees recommended by the General Plan Update Committee (GPUC) did attend the recent GPAC meeting on January 12, 2004. Paper ballots were distributed and City Clerk Harkless announced the votes as follows: Elizabeth Bonn - (Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway) Barbara Lyon - (Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway) Gordon Glass - (Webb, Nichols) Hall Seely - (Heffernan, Rosansky, Bromberg, Mayor Ridgeway) City Clerk Harkless announced the appointment of Elizabeth Bonn for District 1, Barbara Lyon for District 3, and Hall Seely for District 4 (at large members). 20. CORONA DEL MAR STATE BEACH IMPROVEMENTS - AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT WITH ROBBINS JORGENSEN CHRISTOPHER ARCHITECTS (contd. from 12/09/03). Mayor Ridgeway confirmed with Public Works Director Badum that the scope of work now includes all additional scope from what was originally approved and that staff feels comfortable in their recommendation. Council Member Heffernan asked how the phasing was determined. Public Works Director Badum stated that the Phase 2 items were additional add -ons that were brought to the City's attention as the project evolved. He stated that the essential goal of the project was to replace the existing deteriorated structures. Council Member Nichols stated that many people do not agree with what is being proposed. Mayor Ridgeway stated that the merits of the project are not being considered at this time. The action before the City Council is pertaining to an amendment to the contract. Volume 56 - Page 605 INDEX (100 -2004) C -3461 Corona del Mar State Beach Improvements (38/100 -2004) u 0 0 J City of Newport Beach Regular Meeting January 13, 2004 Motion by Council Member Webb to approve Amendment No. 2 to Professional Services Agreement with Robbins Jorgensen Christopher Architects, and authorize the Mayor and City Clerk to execute the Amendment. Council Member Webb confirmed with Public Works Director Badum that the additional design includes the factors discussed at the previous public hearing. Council Member Rosansky confirmed with Public Works Director Badum that the City is receiving 50% more in service for the 50% more money that is being spent. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Mayor Ridgeway Noes: Nichols Abstain: None Absent: Adams P. CURRENT BUSINESS 21. APPOINTMENTS BY THE MAYOR TO THE COUNCIL /CITIZENS AD HOC COMMITTEES, THE JOINT GOVERNMENTAL COMMITTEES, AND THE CITIZENS ADVISORY COMMITTEES. Mayor Ridgeway made the following appointments: I. COUNCIL /CITIZENS AD HOC COMMITTEES A. Aviation Committee 1. Council Member Bromberg 2. Council Member Webb 3. City Manager or designee 4. City Attorney or designee 5. Current president or designee of the Airport Working Group 6. Resident of Newport Coast/Newport Ridge Judith Whitmore Chairman - Bromberg (either Council Member or resident) Vice Chair — Webb (either Council Member or resident) B. Ad Hoc Committee to Promote the Revitalization of the Balboa Peninsula (PROP) Mayor Ridgeway Council Member Bromberg Council Member Rosansky Chairman — Mayor Ridgeway Volume 56 - Page 606 INDEX (100 -2004) City of Newport Beach Regular Meeting January 13, 2004 INDEX C. D. E. Building Ad Hoc Committee 1. Mayor Ridgeway 2. Council Member Bromberg 3. Council Member Heffernan 4. City Manager City - School Ad Hoc Committee 1. Mayor Ridgeway - Chair 2. Council Member Webb 3. Council Member Heffernan 4. City Manager Economic Development Committee (EDC) 1. Mayor Ridgeway 2. Council Member Bromberg 3. Council Member Rosansky 4. Planning Commissioner Selich 5. EQAC Chairman 6. Chairman — Selich F. Oil and Gas Field Operations Committee 1. Mayor Ridgeway 2. Council Member Nichols 3. Utilities Department Director G. City Council Ad Hoc Sphere Issues Committee 1. Mayor Ridgeway - Chair 2. Council Member Bromberg 3. Council Member Rosansky H. Affordable Housing Task Force 1. Mayor Ridgeway - Chair 2. Council Member Bromberg 3. Council Member Webb I. Ad Hoc General Plan Update Committee 1. Mayor Pro Tem Adams — Chair 2. Council Member Bromberg 3. Council Member Rosansky 4. Planning Commissioner (agreed upon by membership) 5. Planning Commissioner (agreed upon by membership) 6. Planning Commissioner (agreed upon by membership) 7. Environmental Quality Affairs Citizens Advisory Volume 56 - Page 607 1] City of Newport Beach Regular Meeting January 13, 2004 INDEX Uommrttee designee 8. Economic Development Committee designee 9. Aviation Committee designee 10. Harbor Commission designee 11. Greenlight designee J. Web Site Review Ad Hoc Committee 1. Mayor Pro Tem Adams — Chair 2. Mayor Ridgeway 3. Council Member Nichols K. Ad Hoc Telecommunications Committee 1. Council Member Nichols 2. Council Member Heffernan 3. Community Member Donald Boortz 4. Community Member Leslie Daigle L. Local Coastal Program (LCP) Certification Committee 1. Mayor Ridgeway — Chair 2. Council Member Bromberg — Vice Chair 3. Council Member Webb 4. Planning Commissioner Selich 5. Planning Commissioner Toerge 6. Planning Commissioner McDaniel M. July 4th West Newport Safety Planning Committee 1. Mayor Ridgeway 2. Council Member Rosansky 3. Community Member Craig Batley 4. Community Member Mary Bryant N. Mariners Joint Use Library Ad Hoc Steering Committee 1. Council Member Webb — Chair 2. Mayor Ridgeway 3. Newport Beach Library Trustee Hamilton 4. Newport Beach Library Trustee Chase O. City Council Economic Advisory Committee 1. Mayor Ridgeway — Chair 2. Mayor Pro Tem Adams 3. Council Member Bromberg P. City Council Ad Hoc Legal Services Committee 1. Mayor Ridgeway Volume 56 - Page 608 City of Newport Beach Regular Meeting January 13, 2004 INDEX 2. Council Member Bromberg 3. Council Member Heffernan Q, Ad Hoc Friends of Oasis Cooperative Agreement Committee 1. Mayor Ridgeway 2. Council Member Webb R. Santa Ana River Crossings (SARX) Ad Hoc Committee 1. Mayor Ridgeway 2. Council Member Webb 3. Council Member Rosansky II. COUNCIL COMMITTEE A. Finance Committee 1. Council Member Heffernan — Chair 2. Council Member Rosansky 3. Council Member Webb III. REPRESENTATIVES TO JOINT GOVERNMENTAL COMMITTEES A. Growth Managernent_Area 8 Representative 1. Council Member Nichols B. Hazardous Waste Material - Joint Powers Authorit 1. Council Member Nichols C. Inter -City Liaison Committee 1. Council Member Bromberg 2. Council Member Heffernan 3. City Manager D. Joint Committee for the Evaluation and I_mplementation of the Upper Newport Bay Cooperative Agreement 1. Mayor Pro Tem Adams 2. Council Member Webb (Alt.) E. League of California Cities /Orange County Division 1. Council Member Webb 2. Council Member Bromberg (Alt.) Volume 56 - Page 609 E 0 i r� LJ C1 City of Newport Beach Regular Meeting January 13, 2004 F. Orange County Coastal Coalition Mayor Ridgeway G. Orange County Council of Governments ( OCCOG) I. Mayor Ridgeway* *SCAG District 14 representative and OCCOG Board Member 2. Council Member Rosansky (Alt.) H. Orange County Homeless Coalition (Affordable Housing) I. Council Member Rosansky 2. Planning Staff Member Jaime Murillo I. Orange Countv Housing Conunission --Advisory Conunittee I. Planning Staff Member Jaime Murillo 2. Planning Staff Member Dan Trimble (Alt.) J. Orange Countv Regional Airport Authority O( CRAA) I. Council Member Rosansky 2. Council Member Webb (Alt.) K. Orange County Sanitation District (OCSD) 1. Mayor Ridgeway 2. Council Member Webb (Alt.) L. Santa Ana River Crossing (SARX) Study Policv Advisory Committee I. Council Member Rosansky 2. Council Member Webb (Alt.) M. Santa Ana River Flood Protection Agency I. Council Member Rosansky 2. Council Member Nichols N. San Joaquin Hills Ttansportation Corridor Joint Powers Agency Board of Directors I. Mayor Pro Tem Adams 2. Council Member Webb (Alt.) O. Southern California Association of Governments SCAG Volume 56 - Page 610 INDEX City of Newport Beach Regular Meeting January 13, 2004 INDEX 1. Mayor Ridgeway* *Appointed by Orange County Division of the League of California Cities P. SR73 /SR551I -405 Freeways Confluence Policy Committee 1. Mayor Pro Tem Adams IV. CITIZENS ADVISORY COMMITTEES A. Environmental Quality Affairs 1. Council Member Bromberg 2. Council Member Nichols 3. Chairman or designee of EDC 4. Chairman — Robert Hawkins (citizen (at large)] B. Coasta/B_a-Y Water Quality Citizens Advisory Committee 1. Mayor Ridgeway 2. Council Member Webb 3. Council Member Rosansky Chair — Ridgeway (either Council Member or resident) Vice Chair — Webb (either Council Member or resident) C. Youth Council 1. Mayor Ridgeway (Liaison) 2. Recreation & Senior Services Staff Member D. General Plan Advisory Committee (GPAC) 1. Co -Chair — Nancy Gardner (appointed from membership) 2. Co -Chair — Phillip Lugar (appointed from membership) E. Newport Coast Advisory Committee 1. Council Member Heffernan 2. Council Member Nichols 3. Community Member Jack Butefish 4. Community Member Patrick Fuscoe 5. Community Member Donald Phelps (Alt.) Motion by Council Member Bromberg to confirm the appointments as recommended and announced by the Mayor. Volume 56 - Page 611 • • • City of Newport Beach Regular Meeting January 13, 2004 The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Mayor Ridgeway Noes: Nichols Abstain: None Absent: Adams Q. MOTION FOR RECONSIDERATION - None R. ADJOURNMENT at 9:35 p.m in memory of Hidi Helwig. The agenda for the Regular Meeting was posted on January 7, 2004, at 2:00 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 56 - Page 612 INDEX City of Newport Beach Regular Meeting January 13, 2004 INDEX THIS PAGE LEFT BLANK INTENTIONALLY Volume 56 - Page 613 • •