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HomeMy WebLinkAbout01 - 12-10-02 and 12-17-02January 14, 2003 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting DRAH December 10, 2002 - 4:30 p.m. INDEX — 4:00 p.m r, r, r,r,r,rx,r,r,r,r,r,r,r,rr,r,r,r A. RECESSED AND RECONVENED AT 4:30 P.M. FOR AN ADJOURNED REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Absent: None C. . CLOSED SESSION REPORT Mayor Ridgeway announced that Council approved a settlement proposal in the lawsuit filed by the Balboa Arbor Society, but it will not be final until action is taken by the Balboa Arbor Society. He stated that, at such time as the settlement proposal is accepted, the details of it will be made available in the City Clerk's office. He announced that the vote was unanimous. D. PLEDGE OF ALLEGIANCE — Council Member O'Neil. E. INVOCATION — Reverend Vincent Gilmore, Parochial Vicar, St. John the Baptist Catholic Church of Costa Mesa. F. AIRPORT ISSUE 1. JWA SETTLEMENT AGREEMENT AMENDMENTS — PROPOSED MODIFICATIONS TO AMENDMENTS APPROVED JUNE 25, 2002. Council Member Glover reported that she went before the Board of Supervisors this morning and announced that the Board adopted the proposed modifications being considered tonight. She introduced Alan Murphy, John Wayne Airport (JWA) Director, and stated that he has done a superb job in working with the Air Transport Association (ATA) and the Federal Aviation Administration (FAA) in Washington D.C. She noted that, for the last four years, she has been going to Washington D.C. about every two weeks. Council Member Glover reported that Council formed the JWA Settlement Agreement Extension Committee 2% years ago when Council first asked the Board to extend the terms of the settlement agreement. She stated that she was the Chairperson of the Committee that also included Council Members O'Neil and Proctor. She noted that the Committee's objective was to extend the JWA Settlement Volume 55 - Page 504 C -2535 JWA Settlement Agreement (38) City of Newport Beach City Council Minutes December 10, 2002 INDEX Agreement on terms that protect the quality of life of everyone who is impacted by JWA operations. She stated that the City initially asked the Board to approve a 20 year extension with the same terms and conditions; however, they quickly realized that this request did not have the support of the Board, the airlines, the FAA, and other Orange County communities. Council Member Glover reported that the Committee proceeded to work with the Board and Mr. Murphy and his staff to develop three extension scenarios. She noted that the City paid for and participated in the preparation of an Environmental Impact Report (EIR) that was completed in three months. She commended the City Manager and City Attorney who helped make that happen in this timeframe. She stated that, at the same time, the Corridor City Coalition was formed and the City implemented an extensive mail program directed at corridor city residents. She reported that the Committee, its corridor city colleagues, and 30,000 corridor city residents encouraged the Board to approve Scenario 1. She indicated that those efforts led to unanimous Board approval on June 25, 2002. She added that Council, Stop Polluting Our Newport (SPON), and the Airport Working Group (AWG) also agreed to amendments that were consistent with Scenario 1. Council Member Glover announced that the Committee worked very hard to obtain Countywide support for Scenario 1 and is very aware of the obligations, not just to the City's residents, but also to the thousands of corridor city.residents who supported their efforts. She emphasized that they would not recommend any modification to Scenario 1 unless they were convinced that the changes would not adversely impact the residents and they receive some assurance from the FAA that the modifications are consistent with Federal law and grant assurances. She stated that the City retained Landrum & Brown, an airport planning firm, to carefully evaluate the proposed modifications.. She reported that, based on their analysis and the study conducted by the County, they are confident that the increase in gates and passengers will not have a significant adverse noise or street/traffic impact. Council Member Glover reported that the Committee is recommending that the Council approve the proposed modifications with the condition that the City receive an opinion from the FAA's Chief Counsel that the amendments are consistent with the Airport Noise and Capacity Act (ANCA) and other Federal laws. She noted that the opinion will provide the community with protection against legal or administrative challenges that could threaten the existence of the settlement agreement. She stated that the Committee and the legal team, which included Steve Pflaum and Clem Shute who negotiated the 1985 Settlement Agreement, strongly believe that the FAA opinion justifies the proposed increases in gates and passengers. Council Member Glover expressed her hope that everyone understands that the Committee's recommendation does not reflect what the City would like to see, but reflects the best the City can do in an imperfect world. She emphasized that her initial objective, which was also shared by other Council Members, was to obtain a 20 year extension with no increase in the number of flights, passengers, or gates. She Volume 55 - Page 505 City of Newport Beach City Council Minutes December 10, 2002 INDEX assured everyone that no one on Council takes any pleasure in authorizing additional passengers or gates; however, Newport Beach does not own the airport. She noted that the law changed dramatically in 1990 and what is being recommended reflects the best possible agreement that can be obtained. Council Member Glover stated that she has consistently said that this Council is the most professional and informed group she has worked with in her years on Council, adding that she believed that only this Council could do this. She indicated that she is sure the Committee shares her opinion that, without the support and special skills of this Council, the City would not be poised to approve a settlement agreement extension that will be accompanied with an FAA opinion. Council Member Glover thanked Council, SPON, AWG, Congressman Cox, and the entire Orange County Congressional delegation for their support. She emphasized that this has been a team effort to collectively achieve the long term protection of the community and quality of life. She added that she appreciates this Council, the City Attorney, and the City Manager. Motion by Council Member Glover to 1) authorize the City Attorney to execute amendments to the Eighth Supplemental Stipulation (Amendments) by the County of Orange, City of Newport Beach, Stop Polluting Our Newport, and the Airport Working Group of Orange County, Inc. (USCD Case No. CV 85 -1542 TJH (MCx)) that modify certain terms approved by the Settling Parties on June 25, 2002 subject to the following conditions: a) that the Amendments are consistent with Exhibit A; b) confirmation that the other Settling Parties have authorized execution of the Amendments consistent with Exhibit A; and c) that the City Attorney execute the Amendments immediately after receipt of a letter from the FAA, satisfactory to the City Attorney in form and content, confirming, among other things, that approval and implementation of the Amendments are permitted by and are consistent with all provisions of federal law or which FAA has implementation or enforcement responsibilities, as well as the County's existing grant agreements with the FAA; and 2) in conjunction with these authorizations and after review and consideration of the Addendum to EIR 582, make appropriate findings and authorize staff to record a Notice of Determination. Council Member O'Neil stated that the motion is appropriate in order to maintain the future quality of life from the impacts of JWA. He noted that JWA will not go away, even though everyone knows that the ultimate solution for handling the air transportation and cargo needs in this area is to have an airport at El Toro. He stated that the City has not absolutely given up on this. He reported that the City has some control over JWA, with the cooperation of the County, through the settlement agreement. He noted that this only came together with the help of Mr. Murphy and his staff, and the support of the Board who owns and operates the airport, AWG and SPON, Council, the corridor cities, and the Congressional delegation. Further, the door was kept open for further discussions with ATA and the FAA to ensure that they were okay with this so the City did not have to spend the next five to Volume 55 - Page 506 City of Newport Beach City Council Minutes December 10, 2002 INDEX ten years in court defending the agreement. He stated that it looks like the City is on the threshold of a deal that he believes is worthwhile. He added that it is prudent to proceed in this direction. He stated that he is proud to be able to vote on this. Council Member Proctor stated that he concurs with everything that has been said. He indicated that he was on the Airport Commission when this issue originally came up. He noted that he would not have believed a year ago that this was possible. He indicated that, once the potential for El Toro was taken off the table, he feared that it would not be possible to extend the settlement agreement that would hold up in court. He emphasized that this collaborative process is a win -win situation, adding that he feels it will not be detrimental to the City and corridor cities. He stated that he is confident that the FAA and the airlines will see the wisdom in moving forward. He commended Council and everyone who worked hard to get here when the potential of it not happening a year ago was high. Council Member Glover commended Jack Stranberg from California Strategy, Allan Beek from SPON, and Barbara Lichman from AWG for their work in the Committee and for their contributions. Ann Watt stated that she believed about 2% years ago that the El Toro issue had taken a turn and that Newport Beach was no longer pursuing it. She believed that Measure W was a critical vote for the City, but the City did not adopt a resolution against Measure W, did not have a "get out and vote" campaign, and hired the political consultant that had ties to a Huntington Beach Council Member that was a pro - developer for El Toro and the surrounding land use. Further, the City voted for Peter Herzog to be on the Local Agency Formation Commission (LAFCO) instead of Lucille Kring of Anaheim. She indicated that she was told by a Council Member that El Toro was dead prior to the election. She stated that Newport Beach made this agreement, not the County, but believed that the County should have made this demand and the EIR so citizens could sue to possibly make E1 Toro the alternative airport site. Ms. Watt stated that they are now facing a 30% increase over ten years in flights, noise, and pollution on a short runway with a quirky takeoff pattern. She believed that this is an aviation disaster. Tom Naughton stated that the Board, the City, AWG, and SPON initially agreed that Scenario 1 made sense; however, the FAA and ATA were omitted from those discussions. He reported that, from that point until tonight, they have involved the airlines who understands the situation and agrees with Scenario 1. Further, the FAA will hopefully provide a letter endorsing the scenario. He indicated that AWG supports the City regarding the settlement agreement. Charles Griffin, 732 Bison Avenue, thanked Council but asked that they not say that the City is not going to be unacceptably impacted. He indicated that he has endured the impacts for 40 years, along with his children and now grandchildren. He noted that Measure F was like a poll and that the outcome showed that a majority of people in Orange County want an airport at El Toro. He stated that this was reiterated by Measure B. He suggested that, since Los Angeles or Long Beach Volume 55 - Page 507 City of Newport Beach City Council Minutes December 10, 2002 1 does not want to expand at El Toro or approach the Navy to lease the runway, the City should utilize Council Members Proctor and Adams' expertise and ask the Navy to lease the north -south runway and operate it as a national airport. He indicated that he is not happy with any expansion, believing that the runway can grow another 1,000 feet. He reported that the GPS system has been proven last month to provide precision approaches to 40,000 airports throughout the country. He stated that this means 767s will be able to operate there. He indicated that this may not be entirely bad since more passengers can be carried out using fewer flights. He asked the City not to give up on El Toro. Shirley Conger, Corona del Mar, stated that, if a frog is thrown into a pot of boiling water, he immediately jumps out. However, if the water is gradually heated, the frog is unaware of the incremental heating and fails to escape. She likened the frog to the City's incremental increases at JWA. She stated that this is a bigger jump than before and that the change will be so gradual that the increases in noise, traffic, and pollution will hardly be noticed until one day the City realizes its gradual destruction. She indicated that JWA currently has 1,000 flights a day (500 approaches and 500 departures) with 240 to 280 being commercial jets. She stated that the remaining 750 flights are private aviation and corporate jets which are limited only by noise level, not curfew. She reported that the commercial jets produce about 8 million annual passengers (MAP). She indicated that the website reports that there are 73 commercial jets per day which are the noisier planes; however, Class E planes that are less noisy are not included. She noted that there are no quiet airplanes or jets. Ms. Conger indicated that she cannot hear a person speaking next to her when she is at the YMCA which is about a mile from the airport. She stated that the City is considering signing onto an extension of the settlement agreement that goes to 2015, but increases the MAP to 10.8 MAP. She indicated that, if the City fails to sign the agreement, the original settlement agreement expires January 1, 2006, and JWA will be controlled by the FAA and the airlines. She agreed that the City is between a rock and a hard place and will lose some of its quality of life either way. She believed that the only sure way to limit traffic at JWA is to open El Toro where no one is in the noise zone. Council Member Heffernan stated that, when he looked at the proposed settlement and JWA's real estate pad, he saw the City's exposure as being general aviation. He indicated that, if they are moved off the field or to one end of the field, the real estate will be attractive for an expansion of flights. He noted that those flights are currently not permitted because private jets and planes are currently on the real estate pad. He emphasized that the City is lucky to have gotten this because the rest of the County has very little care about the City's plight and what environmental impact occurs to it. He added that the City has very little leverage to do much else and applauded Council for negotiating this. He stated that this is the best the City can do, noting that it is not perfect. He indicated that the City should accept it. Mayor Pro Tem Bromberg concurred with Council Member Heffernan. He stated that, when this proposal was first brought to Council, he was Volume 55 - Page 508 City of Newport Beach City Council Minutes December 10, 2002 probably the most skeptical and critical of it because he lives under the flight path on Balboa Island. He indicated that his biggest concern, before this proposal, was about what would happen in 2015. He emphasized that the City does not own or control JWA. He reported that JWA is the only airport in the country that has these types of restrictions. He noted that ANCA states that they cannot enter into new agreements. He stated that the City hired some of the finest airport lawyers who told them that the proposal could be classified as an amendment to the 1985 agreement and, if sued by the airlines or the FAA, the City would have a good chance of winning. However, he talked to people who work with the FAA in litigation who stated that this was not a great deal but was a good deal for the City. He believed that, if the City went to litigation and lost, there would be open skies over Newport Beach, which would destroy the City's property values and quality of life. Mayor Pro Tem Bromberg reported that the ATA wanted additional flights in addition to what was agreed upon, but the City said no. He indicated that, if/when the City has to address this issue again with the County, the City will have a letter from the FAA, which he has seen a draft of, that does not let any airline or anyone else come in and say that the City cannot do this. He stated that the FAA letter states, in part, that what is being done is consistent with ANCA. He believed that this is the best proposal for Newport Beach. Mayor Ridgeway stated that the City did not agree to add six of the noisiest flights. Mayor Pro Tem Bromberg noted that the configuration of the additional gates is strange, but may actually reduce the amount of flights departing from 7:00 to 9:00 a.m. Mayor Ridgeway believed that this is a momentous occasion. He explained that the proposal generally takes the FAA out of the equation from 2015 and beyond. He added that the curfews will continue until 2020 under this proposal. He stated that the future negotiating parties are the Board of Supervisors and Council. Mayor Ridgeway stated that he sits on the Southern California Association of Governments (SCAG) Aviation Task Force and the Transportation and Communications Committee (TCC). He reported that SCAG is required to complete a transportation plan every three years which also looks at airport demand and street patterns. He indicated that general aviation has a strong lobby. He stated that the Ontario Airport will probably take the demand from South County and the goal will be to create adequate road patterns from South County through corridors that have been approved by the TCC and SCAG. Mayor Ridgeway expressed hope that technology will be created in the next 10 to 20 years that decreases noise level. He expressed his gratitude for Council Members Glover, O'Neil, and Proctor. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None Volume 55 - Page 509 INDEX City of Newport Beach City Council Minutes December 10, 2002 M Presentation of gifts to outgoing Council Members Norma Glover and Dennis O'Neil by Mayor Ridgeway. Mayor Ridgeway, on behalf of the entire Council, presented Council Member Glovers and O'Neil with gifts. Presentations by other community leaders and public officials. Michelle Hart, representing Senator Johnson and Assemblyman Campbell's offices, presented Council Members Glover and O'Neil with proclamations. She stated that one of the first people she became acquainted with when she came back to this area from Sacramento was Council Member O'Neil. She indicated that she was sorry she did not get to work more with Council Member Glover. She reported that, on behalf of the State delegation, they are proud of the work Council Members Glover and O'Neil have done to serve Newport Beach. Mayor Ridgeway introduced past Mayors Evelyn Hart and Jan Debay, and former Council Member Lucille Kuehn who were present in the audience. Captain Jim Fournier, representing Congressman Cox's office, reported that Congressman Cox delivered a Congressional Record about Council Members Glover and O'Neil, dated December 10, 2002, that anyone in the country can read when they visit a public library. He read Congressman Cox's statement and presented them with a copy of the Congressional Record. Mayor Ridgeway presented Council Members Glover and O'Neil with City plaques. Remarks by outgoing Council Members Norma Glover and Dennis O'Neil. Council Member Glover stated that being on Council and in local politics is about people and indicated that she served five years on the Planning Commission and eight years on Council. She stated that she ran on the same ticket with Council Member O'Neil which was sponsored by the Chamber of Commerce and believed that, in the last two years, she has come to respect him more than any man other than her husband. She pointed out that he is all the things that she was brought up to respect about people - civil, a gentleman, and handles situations in a fair way. She believed that Council Member O'Neil is the type of person the City has had on Council. She stated that, when she ran for Council, she never said anything negative about the City, but only wanted to do as well as the people that served prior to her. Council Member Glover believed that Rae and Stan Cohen's family epitomizes what is wonderful about Newport Beach. She stated that Stan Cohen has written books and newspaper columns, and Rae Cohen has worked to make the Newport Theater Arts Center what it is today. Further, their children have all gone to school in the City and have grown up to become wonderful citizens. Council Member Glover stated that she has enjoyed working with the guys on Council. She added that she was very encouraged by the election this year because some people have turned negative about the City. She emphasized Volume 55 - Page 510 INDEX City of Newport Beach City Council Minutes December 10, 2002 INDEX that the City is such a wonderful community with wonderful people. She stated that everyone needs to be more generous of heart, try to respect people, be more civil, and be thankful for what they have. Council Member Glover stated that she has worked with Congressman Cox in airport and air quality issues and commended him for being respectful of public policy. She indicated that the City is fortunate to have a congressman of this caliber. She added that Senator Johnson is intelligent and thoughtful, and Assemblyman Campbell has done a wonderful job. Council Member Glover stated that City Attorney Burnham's strong suit that he has not been able to use for the last four years is working with community groups. She added that she and Mr. Burnham spent two years learning everything about water quality and he spent a lot of time on airport issues. She stated that the community will have a great loss if he ever leaves. Council Member Glover stated that City Manager Bludau has run the City well and attended to the airport issues. Council Member Glover stated that the City has a group of special employees that have always meant a lot to her and have always been the face of Council in the community. She indicated that her trash is picked up every Tuesday by wonderful employees who do a superb job, never leave anything behind, and are always friendly. She commended General Services Director Niederhaus for his work. Council Member Glover also stated that the Fire Department and Police Department do a great job. Council Member Glover stated that, the longer you serve on Council, the more you learn to love the City, especially the geography, ocean, and villages. She believed that Fashion Island has become a regional center for the City and a place where people from all over the County come to enjoy over the weekends with their families. She indicated that it is wonderful that Newport Beach is a village city. Noting that the City has done an excellent job in keeping funding down compared to the revenue stream, Council Member Glover concluded by expressing her concern about the City budget and requested that the next Council always be careful with the finances, make sure the revenue stream is high, and be frugal. Council Member O'Neil congratulated newly elected Council Members Webb and Nichols, and re- elected Council Members Ridgeway and Adams. He also congratulated Council Member Glover for her successful eight years on Council. He stated that he feels the same way about her. Council Member O'Neil thanked everyone who voted for him, stating that it has been worthwhile and rewarding. He especially thanked the potential candidates who did not run against him four years ago. He pointed out that the City has marvelous citizens and people who are willing to give of their time to serve the community. Council Member O'Neil agreed that the City has the best staff imaginable. He commended City Attorney Burnham, adding that he is one of the two best City Attorneys the City has ever had. He stated that he was on the team that hired City Manager Bludau and indicated that he is a great addition to the City. He also commended City Clerk Harkless and her office. Council Member O'Neil stated that he will ride off into the sunset knowing that this has been a wonderful experience. Volume 55 - Page 511 City of Newport Beach City Council Minutes December 10, 2002 Council Member Proctor stated that the City would not be where it is with the airport issue if it were not for Council Members Glover and O'Neil. He indicated that it is hard to truly appreciate the amount of time and commitment this job involves. He emphasized that Council Members Glover and O'Neil have put in a great deal of time and effort on behalf of the citizens. He believed that the entire citizenry owes a tremendous debt of gratitude to them for all they have given back to the City to make it a better place. Council Member Adams stated that he is very proud to have served with Council Members Glover and O'Neil, and wished them both the best. He indicated that he has become good friends with them over the last four years and looks forward to remaining friends for a long time. Mayor Bromberg stated that he met Council Member Glover when she was on the Planning Commission. He indicated that she is a wonderful person to work with and that he has learned a lot from her. He stated that he met Council Member O'Neil 8'/ years ago. He reported that they are extremely dedicated people who have put their hearts and lives into this. He congratulated them. Council Member Heffernan stated that tonight marks the end of eight years of voluntary, elected public service for Council Members Glover and O'Neil. He indicated that, with only two years in office, he can attest that holding a Council seat has been a constantly demanding and sometimes weary job. He stated that they have performed this job well and provided a great benefit to the City. He noted that, beyond approval ratio, is the hard, methodical, and unglamorous work of public office and listed issues that they deal with as Council Members. He reported that Council Members Glover and O'Neil deserve a great deal of credit for the way the JWA issue was handled. He believed that it is fitting that they leave on this high note since they were part of the three person committee along with Council Member Proctor. He stated that everyone should thank them for their work, not only with airport issues, but also for having so long and so well served the Newport Heights/Mariners Mile and Corona del Mar districts. Council Member Heffernan thanked them for a job well done and, even though they are often taken for granted, they will never be taken for granted by him. Mayor Ridgeway stated that he will miss Council Members Glover and O'Neil immensely, adding that it has been a tremendous four years for him. He indicated that he respects both of them and wished them the best in their future endeavors. Council Member O'Neil thanked his wife of 36 years and campaign manager, Thais, for all her support. Council Member Glover stated that she was on Council when they hired City Clerk Harkless and indicated that she has done a very good job, especially with the elections and initiating passport services. She also thanked everyone in the City for being so wonderful and giving her and Council support over the years. She stated that serving the City was a privilege that she will always remember. H. REORGANIZATION 2. CERTIFICATION OF GENERAL MUNICIPAL ELECTION RESULTS. Volume 55 - Page 512 INDEX Res 2002 -85 Elections City of Newport Beach City Council Minutes December 10, 2002 INDEX Motion by Mayor Pro Tem Bromberg to adopt Resolution No. 2002- 85 declaring the results of the General Municipal Election held on November 5, 2002. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway Noes: None Abstain: None Absent: None 3. ADMINISTRATION OF OATH OF OFFICE. City Clerk Harkless called newly elected Council Members Don Webb and Dick Nichols, and re- elected Council Members Tod Ridgeway and Gary Adams forward. She then administered the Oath of Office prescribed in the State Constitution to the elected officials and presented a Certificate of Election to each of them. The newly elected and re- elected Council Members were seated at the Council dais. 4. ELECTION OF MAYOR. City Clerk Harkless announced that she would preside over the election of the new Mayor. She placed all members of the City Council on an equal basis to nominate and elect, and asked if there were any nominations. Council Member Proctor nominated Council Member Bromberg. Motion by Mavor Pro Tem Ridgeway to close the nominations. The nomination carried by the following roll call vote Ayes: Heffernan, Bromberg, Ridgeway, Webb, Adams, Proctor Noes: Nichols Abstain: None Absent: None Mayor Bromberg took his proper place at the Council dais. 5. ELECTION OF MAYOR PRO TEM. Mayor Bromberg announced that he would preside over the election of the new Mayor Pro Tem. He placed all members of the City Council on an equal basis to nominate and elect, and asked if there were any nominations. Council Member Proctor nominated Council Member Ridgeway. Motion by Council Member Webb to close the nominations. Volume 66 - Page 513 City of Newport Beach City Council Minutes December 10, 2002 II�117a/:1 The nomination carried by the roll call vote: Ayes: Heffernan, Nichols, Ridgeway, Webb, Adams, Proctor, Mayor Bromberg Noes: None Abstain: None Absent: None Mayor Pro Tem Ridgeway took his proper place at Council dais. 6. SEATING ARRANGEMENTS FOR CITY COUNCIL. The City Council decided on the seating arrangement of the Council dais, with senior members having first preference. The follow seating, from left to right, was decided upon: Heffernan, Proctor, Ridgeway, Bromberg, Adams, Webb, Nichols. 7. REMARKS. Mayor Bromberg presented outgoing Mayor Ridgeway with a gavel plaque. He noted that mayor positions are normally referred to as "ceremonial positions", but added that the Mayor speaks on behalf of the City and commended outgoing Mayor Ridgeway for it. Outgoing Mayor's remarks. Mayor Pro Tem Ridgeway stated that he was honored last year to be selected as Mayor. He indicated that the entire Council leaves on a high note tonight because of the JWA settlement agreement which has been in the works for years. He noted that another high note for him was the 301(h) waiver which keeps the water clean off the ocean. He stated that this was also part of his position while on the Sanitation District. He pointed out that it was this Council that unanimously supported that position and added that the City was one of the first to go on record opposing the waiver. He reported that another high note that he worked on was the formation of the Harbor Commission and the creation of the Harbor Element. He added that he was also proud of the Balboa Village dedication last summer. He applauded the Balboa Pavilion for the amount of Christmas decorations they used since the building can be seen now. He stated that this Council has been a professional, cooperative Council and that he is proud to be a part of it. Mayor Pro Tem Ridgeway thanked everyone for voting for him and stated that he takes this as a vote of confidence by the residents. He believed that everyone has the same goal of having a world class city with a high quality of life. He expressed hope that he can create a legacy like Council Members Glover and O'Neil, but emphasized that this cannot be done without the residents and Council. Mayor Pro Tem Ridgeway also thanked his wife /campaign manager, Kay, and his children, Kyle, Scott, and Madison, for their support. Volume 55 - Page 514 City of Newport Beach City Council Minutes December 10, 2002 INDEX New Mayor's remarks. Mayor Bromberg thanked his colleagues for selecting him as Mayor. He indicated that his style will probably be very different and announced that his goal is to maintain and better the quality of life in the City. He also thanked his wife, Ronnie, for letting him take this job. Remarks from newly elected/re- elected Council Members. Council Member Nichols thanked all those who supported him in his run for Council. He stated that it is an honor to follow Council Member O'Neil in this position. He thanked his wife /accountant/manager, Sandy, who runs things; his daughter, Cathy, who is his assistant; and his sons, Rich and Matt, who recommended that he get individual campaign signs. He also thanked Greenlight, particularly Phil and Margaret Arst, Jean Watt, Evelyn Hart, Bill Cool, Michael Hirsh, George Jeffries, Tom Hyans, Elaine Linhoff, Wally Zigler, Larry Porter, Al Maney, and Bob Satler. He further thanked those that worked with him in the California Republican Assembly. He reported that they not only endorsed him, but also Allan Beek, and Madelene Arakelian, and provided a non - endorsement to Rick Taylor. He noted that they are the only authorized endorsing agency that can use the Republican name. Council Member Nichols further thanked Jo and Bob Miller, Marge Pantzar, Chuck and Betty Kelly, Bruce Crawford, and Doug and Nancy Thompson. He also thanked his fellow candidates, Allan Beek, Rick Taylor, and Madelene Arakelian, and opponents, Marianne Zippi and Ron Winship. He stated that he looks forward to being on Council and hopes that he can do a good job for the City. Council Member Webb stated that being "Walking Don Webb" was one of the reasons he met so many people and was able to get the support to be on Council. He thanked Council and the citizens of the City for giving him the opportunity to serve as a Council Member. He indicated that he plans to work very hard to ensure that the trust that was given to him was well- founded. He stated that he is honored to continue his public service. He reported that, when he started working for the City in May 1968, he had no idea he would be a Council Member some day. Council Member Webb recognized his wife, Jan, for being the effort that kept him positive and going; his son, Don, granddaughter, Ella, and his wife, Kelly; his daughter -in -law, Paige; his sister -in -law, Jaime; and his cousin, Nancy. Council Member Webb stated that he made a presentation last week to the California Public Library Construction and Renovation Board regarding the City's application for the joint use library at Mariners. He announced that the City received the grant and that he is very proud. He indicated that one of his goals is to now help put the library together with Council. He believed that this will be a wonderful opportunity for the youth in the community. Council Member Webb stated that he has worked with Council Member O'Neil since he was the City Attorney and worked with Council Volume 55 - Page 515 City of Newport Beach City Council Minutes December 10, 2002 INDEX Member Glover for 13 years since she was first on the Planning Commission. He applauded them both for their work on the airport issue. He indicated that he and his wife will continue to walk the City and hopes to receive invitations from neighborhoods to walk with them so he can get a feel for the community and what people want. Council Member Webb noted that the three engineers are seated at one end of the table. He expressed hope that Council can work together and make Newport Beach a place of beauty and light. Council Member Adams stated that it has been an honor and privilege to serve over the last four years and looks forward to another four and final four years. He thanked everyone who supported him while in office and in this recent campaign, particularly Ray Zartler, his campaign treasurer, and his wife, Birgitt, whom he would not be doing this without her support. He added that it has been an honor to serve with Council Members Glover and O'Neil. He also congratulated Council Members Nichols and Webb, stating that he looks forward to working with them. Council Member Proctor welcomed newly elected Council Members Webb and Nichols. Council Member Heffernan welcomed newly elected Council Members Webb and Nichols. He noted that being on Council is a daunting task in the beginning and that the learning curve is steep. He thanked them for helping the City out by volunteering as a public official as a City Council Member for Newport Beach. Addressing the new Council Members, Mayor Bromberg indicated that, to be effective, one must put in as much time as is wanted, not necessarily as much as one has to. He noted that being on Council is considered a part -time job, but it actually seems like they have two full - time jobs. He stated that he is sure they will do the very best job that they can. I. PUBLIC COMMENTS Aaron Israel, Chairman of the Youth Council, thanked Council Members Glover and O'Neil for all their hard work. He congratulated the re- elected and newly elected Council Members, and joked that he will stop calling Mayor Pro Tem Ridgeway at home. Mr. Israel reported that he was elected as a Council Member during last year's City Government Day and indicated that he is familiar with the scenarios involved in the JWA settlement agreement. He expressed the opinion that Council made the best possible decision. Mr. Israel reported that the Youth Council is currently working on City Government Day which is scheduled for April 2003, Challenge Day at the Oasis Senior Center, and a service project. He stated that Newport - Mesa Zero Tolerance Policy 4210 is going through a planning stage and announced that a public forum regarding this will be held January 27, 2003, at the Costa Mesa Community Center. He encouraged any parent, student, or member of the community who has any relation to Volume 55 - Page 516 City of Newport Beach City Council Minutes December 10, 2002 the Newport -Mesa Unified School District to participate. He indicated that he will be chairing a sub -topic group to discuss possible amendments to the 4210 Policy. J. ADJOURNMENT - at 6:25 p.m. to a 4:30 p.m. Study Session and a 7:00 p.m. Regular Meeting on Tuesday, December 17, 2002, in honor and recognition of outgoing Council Members Norma Glover and Dennis O'Neil who served on the City Council from 1994 to 2002. The agenda for the Adjourned Regular Meeting was posted on December 4, 2002, at 4:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 517 INDEX CITY OF NEWPORT BEACH City Council Minutes ����� Study Session December 17, 2002 - 4:30 p.m. INDEX ROLL CALL Present: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Item 10 (Corona del Mar State Beach Improvements), Council Member Webb noted that this is a 25% increase in the scope of work. He asked what is the original scope, how is it being expanded, what additional work is being paid for by the contract, and what is the cost estimate for the entire project. Mayor Bromberg suggested that Council Member Webb pull the item tonight and ask these questions. Regarding Item 9 (Traffic Flow Optimization Project), Council Member Adams stated that he would like to see the contract augmented regarding key personnel. He believed that the individual who will be doing the signal timing work was a key reason the firm was selected. He indicated that he will be pulling the item tonight to have that person identified in the contract, similar to how the project manager is identified. He stated that, if the firm cannot deliver him or he leaves the job, the City should have the option to terminate the contract if they cannot find a suitable replacement. Mayor Bromberg asked if the money the City will be paying is strictly for synchronization and traffic flow optimization, or will the firm be providing an entirely new system. Public Works Director Badum clarified that the City will not be getting a new system, but will receive some improvements. He indicated that this will not just be a study since there will also be recommendations made regarding timing changes. City Manager Bludau added that training will also be provided. Council Member Heffernan asked how the impending Caltrans transfer of Coast Highway and the Visioning 2004 project in Corona del Mar impacts this project. Council Member Nichols noted that the City had traffic data with regard to the General Plan and asked if this information will be used. Mr. Badum stated that they want to use the most up -to -date traffic count data, noting that the model that will be used for the General Plan Update (GPU) should be completed soon. He pointed out that this project will look at all of the City's traffic signals, the timing, and the software that runs the signals. He stated that they will use the recent data as the base and look at the timing Volume 55 - Page 518 City of Newport Beach Study Session Minutes December 17, 2002 to see what changes can be made. He indicated that the GPU study is more for land use issues and this study is for operational issues. In response to Council Member Nichols' question, Mr. Bludau reported that some of the City's signals vary by the time of day, based on traffic flow. He noted that this does not look at using cameras in order to take pictures of people who run red lights. Mr. Badum indicated that one of the products of this report will be a list of potential products to use. Regarding Item 12 (Required Reimbursement of Legal Cost for Orange County LAFCO Associated with A Simple Vote v. LAFCO of Orange County), Council Member Heffernan asked who the plaintiff was that brought this lawsuit against LAFCO and the total funds expended. City Attorney Burnham noted that Council Member Webb identified a typographical error in the Professional Services Agreement with William Avery & Associates (Item 4). He stated that the term in the contract states one year, but the report mentions 24 months. He clarified that the contract is a one year contract. 2. ANNEXATION ISSUES — WEST SANTA ANA HEIGHTS, SANTA ANA COUNTRY CLUB, UNINCORPORATED AREA SOUTH OF MESA DRIVE. Mayor Pro Tem Ridgeway recused himself because he owns property on Santa Ana Avenue and has a conflict of interest in this area. Assistant City Manager Kiff reported that the City Council, in October 1999, directed the City to annex Newport Coast, East Santa Ana Heights, and Bay Knolls. He noted that Newport Coast was annexed effective January 1, 2002, and East Santa Ana Heights and Bay Knolls will become part of the City on July 1, 2003. He clarified that a sphere of influence is the ultimate boundaries for a city and is developed by the Local Agency Formation Commission ( LAFCO) which is comprised of County Supervisors, city officials, special district officials, and one public member. He reported that the only area left to annex in the City's sphere is Banning Ranch. Mr. Kiff noted that West Santa Ana Heights, the Santa Ana Country Club, and South of Mesa Drive are in Costa Mesa's sphere of influence, but are adjacent to the City. He stated that LAFCO did not allow Costa Mesa to apply to annex West Santa Ana Heights in September because LAFCO and its staff believed that the citizens would oppose Costa Mesa's application to an extent that they did not even want to go through the protest period. He reported that the area South of Mesa Drive, which includes the Santa Ana Country Club, successfully protested out of Costa Mesa's annexation application. Council Member Proctor asked how LAFCO addresses areas like Banning Ranch when there are no citizens to protest the annexation. Mr. Kiff reported that LAFCO law sets up two annexation procedures depending on the type of territory. He explained that a "landowner voter annexation' has less than 12 registered voters in the district, and a "registered voter Volume 55 - Page 519 INDEX Annexation (21) City of Newport Beach Study Session Minutes December 17, 2002 INDEX annexation" has more than 12 registered voters. He stated that, in an area like Banning Ranch in which there are no registered voters but one primary landowner, the landowner has the ability to approve or veto /protest the annexation proposal. However, the landowner can bring forward an annexation proposal and ask LAFCO to communicate with the annexing city who can then approve it, the landowner would not protest it, and LAFCO would provide the final approval. He indicated that, if the City initiated the Banning Ranch annexation, it would still need the approval of LAFCO and the landowner, or have a lack of protest. Mr. Kiff utilized a PowerPoint presentation to show Area 7. He noted that West Santa Ana Heights gathered enough signatures to effectively kill the annexation at the protest hearing on December 2. He pointed out that the City does not have to annex this area. He explained that the Country Club has the ability to approve or defeat an annexation as a property owner if they were the sole focus of an annexation. Mr. Kiff also showed the airport area in relation to the proposed annexation areas. He noted that LAFCO does not include the golf course near the airport or the runways in anyone's sphere of influence due to Board of Supervisor policy. Council Member Adams asked if the City should lobby to change this policy. Council Member Proctor indicated that he was under the impression that the golf course was owned by the County. In response to Council questions, Mr. Kiff reported that Master Circle is in Costa Mesa. He confirmed that the lower portion of the golf course is in Newport Beach, the upper portion is in the County's jurisdiction, and part is annexable. Council Member Nichols noted that the annexable area appears to be directly under the runway. Mr. Kiff indicated that the City would need to conduct a survey to get a precise map of the spheres of influence. Mr. Riff provided an area summary of the different communities. He pointed out that some issues facing the City is that Area 7 is still in Costa Mesa's sphere of influence and that the City has not typically tried to annex areas that are in other communities' sphere. He asked if the City should wait until Costa Mesa takes an affirmative action to remove Area 7 from its sphere of influence. Mr. Bludau indicated that, if the City wanted to force the issue, it can apply to LAFCO to change the sphere of influence. Mr. Kiff noted that West Santa Ana Heights is also in redevelopment and diverts growth in property tax over a base year to the Orange County Development Agency, therefore, the City would not benefit from any growth in property taxes. Further, the County would continue to decide where the moneys are spent. He noted, however, that the sales tax may be higher than the property tax for this community. He indicated that Council Policy D -2 requires the City to look at issues like this. Council Member Webb asked if there has been any instance in which the redevelopment agency is transferred to a city once the area is annexed. Mr. Kiff indicated that Lake Forest annexed a community that was in the County's redevelopment agency and that the Lake Forest continues to keep that area in redevelopment. He reported that Lake Forest City Council also becomes the Lake Forest Redevelopment Agency and makes expenditure decisions. He indicated that it is financially feasible for the City to take over the Volume 55 - Page 520 City of Newport Beach Study Session Minutes December 17, 2002 INDEX redevelopment area because it has a significant amount of resources ($30 million) and not all of it has been allocated for projects, even though they have a list of projects they would like to accomplish. He noted that a lot of the projects are generated from the airport. He reported that, if the airport is separated, the City can potentially have control over the funds generated for East and West Santa Ana Heights. Mr. Bludau stated that this would mean that Council would act as the redevelopment's decision making body. Mr. Kiff pointed out that the redevelopment area does not grant the County powers of eminent domain. He added that the County operates one redevelopment agency with 13 different project areas. Mr. Kiff stated that, if the City does not annex the territory, it can be argued that the area will never become part of Costa Mesa as long as the law stays the way it is. He indicated that the current law only allows areas less than 75 acres to be annexed without a protest. Further, the City would probably continue to respond to some of the police and fire service calls. Regarding the John Wayne Airport (JWA) expansion, Mr. Kiff indicated that the Airport Land Use Commission (ALUC) law already limits the local agency's ability to change land uses around airports. Further, the runway protection zone is not annexable, in part because it is not in any sphere of influence. He stated that the City can try to annex it, but counties across California have veto power over issues like this. He explained that, prior to hearing an annexation, one of the things LAFCO has to see is a negotiated property tax exchange and, even if the City gives up all of the property taxes, the County can still refuse to adopt a resolution that matches the City's proposal. He indicated that LAFCO will then never hear the issue. Mr. Kiff reported that, specifically with East and West Santa Ana Heights, there is a plan that links them together as one community. Further, as seen during the protest period, there is significant community support for annexation into Newport Beach. He added that there is a project area committee (PAC) that acts as a de facto community association for both those communities. Mr. Kiff reported that the City is still trying to determine a location for the fire station and added that the County has agreed to contribute towards the cost of the fire station. He noted that the City requested 100% support and believed it may receive it. He added that the PAC is looking at a community center site which is currently the YMCA. He stated that the Orange County LAFCO asked Council in September to consider adding West Santa Ana Heights to its sphere of influence, but has not asked about the rest of Area 7. He reported that there are a number of things the City would have to do in order to pursue this. Mr. Kiff indicated that they would like to come back at a regular meeting with an agenda item communicating the City's interest or lack of interest in annexing all or part of Area 7, a fiscal impact analysis based on Council Policy D -2, and a formal decision. Mr. Kiff indicated that it would be hard to make an annexation like this effective before July 2004 since the agenda item would need to come back in 2003, a fiscal impact analysis needs to take place, the areas would need to be prezoned, the City needs to apply to LAFCO, a LAFCO hearing must take Volume 55 - Page 521 City of Newport Beach Study Session Minutes December 17, 2002 I place, and a protest period needs to occur. He stated that, because of the way the State Board of Equalization allocates property taxes, it does not make sense to annex on any date except July 1 of the year following the LAFCO hearing. Mr. Kiff reported that the public can find out more at www.oclafco.ca.gov; www.city.newport - beach.ca.us; or www.leginfo.ca.us; or by calling the City at (949) 644 -3002 or LAFCO at (714) 834 -2556. Council Member Heffernan asked how code enforcement will work when the City takes over. Mr. Kiff reported that the municipal code would apply to the annexed community. He indicated that many of the communities look like Newport Beach, but there are some areas that do not. In response to Council Member Heffernan's question about the things that are currently not in compliance with the code, Planning Director Temple reported that the City would look at the existing development standards and compare them to the City's development standards as part of the preannexation zoning process. She stated that, for Bay Knolls, the City developed a new overlay zone so some of the development standards were close to what previously existed in order to minimize the creation of legal non - conforming buildings. She indicated that they cannot guarantee this in every case, but they do their best to minimize those types of conflicts. However, if there are new non - conformities created as a result of the new regulations, the property owners can still remodel, maintain, or expand their properties as provided in the City's code relative to non - conforming structures and uses. Ms. Temple also noted that the City has a zoning district that can accommodate animals/livestock. She stated that the City may look at that as a base zoning district for those areas if it wants to maintain the property owners' ability to have those uses. She confirmed that the City did this for East Santa Ana Heights since a lot of people have stables. Paul Watkins, 6408 West Ocean Front, stated that he is speaking on behalf of the entire Area 7 and thanked Mr. Kiff for thoroughly looking at this issue. He introduced David Grant, President of the Santa Ana Country Club; Art Cencil, past president of the Santa Ana Country Club; Dr. Cal McLaughlin, South Mesa Drive area; and Jay Taylor, West Santa Ana Heights area. He expressed hope that this is nearing the end of a ten year odyssey to have all of Area 7 join Newport Beach. He stated that, for years, they have publicly and privately requested the City's favorable consideration to allow Area 7 into the City, but the City has carefully avoided taking a position that is adverse to Costa Mesa. He indicated that the City has respected Costa Mesa's hold on Area 7, but emphasized that, on December 2, Area 7 officially protested Costa Mesa's effort to annex the area. Mr. Watkins noted that the staff report indicates that the protest was over 60 %, but pointed out that the LAFCO website indicates 69 %. He clarified that 76.4% of the area South of Mesa Drive is in favor of coming into the City and added that the Santa Ana Country Club also asked that it not be included in Costa Mesa. Mr. Watkins stated that they are asking that the City continue to respect Costa Mesa, but aggressively follow the mandate of the majority of the residents and property owners in Area 7. Further, they are asking that the City begin the process to prezone all of Area 7 and file an application with LAFCO to annex all of Area 7 into Newport Beach. He stated that it is Volume 55 - Page 522 City of Newport Beach Study Session Minutes December 17, 2002 INDEX possible that LAFCO will try to split up Area 7 and encourage the City to take only a portion of it; however, the representatives of Area 7 can confirm that their request is for all or none of Area 7 to come into the City. He noted that LAFCO joined Area 7 together because of possible annexation into Costa Mesa, but they are requesting that it remain intact. Mr. Watkins believed that the annexation is a win -win solution for the City and Area 7 because of JWA. He indicated that Area 7 is a vital alliance and buffer against further airport expansion. He stated that, despite the Settlement Agreement and the 10.8 million annual passenger (MAP) cap, they believe the agreement will constantly be under attack in coming years. He indicated that, with Area 7 being directly under the flight path, it will provide a unified voice against those that hope to chip away at the agreement as the population grows and as outcries for additional air traffic capacity increases. Council Member Heffernan asked what the internal vote was for the Santa Ana Country Club. Mr. Grant reported that they have 400 regular equity members, over 200 of them live in Newport Beach, and 23 live in Costa Mesa (12 living on Master Circle). He stated that there is an overwhelming majority and sentiment to have the local representation be from Newport Beach. He indicated that they feel less able to control their own governmental destiny by working with the County. He added that the Country Club Board also voted favorably for this. Mr. Bludau asked if all of the 76% from the South Mesa Drive area also want to become residents of Newport Beach. Mr. Watkins believed that they do, noting that the petition not only stated that they wanted out of the annexation into Costa Mesa but also stated that they wanted to join Newport Beach. Dr. McLaughlin stated that the 76% represents all of the registered voters. He noted that only 5% wanted to be part of Costa Mesa. Robert Hanley, Santa Ana Heights, stated that Council saw him and others address the City regarding the airport situation. He indicated that they also spoke with Costa Mesa about this but the experience was negative. He emphasized that Santa Ana Heights has nice homes and the area is wonderful for raising children. He stated that Costa Mesa promised them on numerous occasions that they would abide by LAFCO's decision. Regarding the redevelopment agency, he indicated that he felt disenfranchised at those meetings. He stated that the membership was appointed by the County and that a number of them are not residents of Santa Ana Heights. He indicated that he would like to see that justified and would be delighted if Council took it over. Charles Griffin believed that it would be appropriate to show the safety zones on the map, noting that it extends to the clubhouse of the Newport Beach Golf Course which is within the City. He indicated that the airport manager told him that it would not be possible to extend the runway south any further because that would extend the safety zone into the City and, therefore, the City would have the right of refusal. He believed that this is a strong reason for bringing West Santa Ana Heights into the City. He added that this also makes the safety zone strictly controlled by the City. Volume 55 - Page 523 City of Newport Beach Study Session Minutes December 17, 2002 INDEX Mr. Griffin reported that there is a localizer transmitter 1,000 feet from the end of the runway which makes that 1,000 feet unusable. He stated that it was paved a year ago to make it a stopway /overrun that cannot be considered by the pilots for takeoffs or as a load factor. However, the Federal Aviation Administration (FAA) completed all its tests for the global positioning system (GPS) geostationary satellites which means that 40,000 airports will be getting rid of the localizers next year since it is a maintenance item for the FAA. He stated that the 1,000 feet will then be available to become a runway, except in safety zones. He reiterated that, if the City controlled the safety zone, the FAA cannot extend the runway and use the 1,000 feet except for takeoffs to the north. Mayor Bromberg asked if Area 7, as configured on the map, puts the City in any special position relative to future airport issues. City Attorney Burnham stated that, if the City annexed that area, the only thing that would change is that the County would need the City's permission to acquire land, but it is his understanding that the County already owns that property. He stated that he does not see any airport benefits to a City annexation. In response to Council questions, Mr. Kiff stated that the retail center on Irvine Avenue generates about $80,000 to $90,000 a year in sales tax. He indicated that they need to confirm this with the State Board of Equalization and noted that this is the intent of the fiscal impact analysis. Council Member Adams stated that he would like to see staff proceed with the fiscal analysis and bring it back to Council. He indicated that, at that time, Council should discuss pursuing the redevelopment agency. Council Member Proctor agreed, but also requested an understanding of why $30 million of redevelopment money has not been spent. Mayor Bromberg asked if there was discussion in Sacramento about returning all redevelopment money that has not been used. Mr. Kiff stated that the Governor's administration presented a proposal that would take unspent housing funds from redevelopment agencies. He noted that redevelopment law currently states that 20°x6 of all property tax increment should be set aside for low and moderate income housing. He stated that there really is nothing that keeps them from looking at the other 80 %. Council Member Webb believed that the City should move forward with this and added that he would like to see the City pursue transferring the redevelopment agency to the City if possible. He indicated that almost 1/3 of the revenue is generated by the JM Peters development which has been in the City for the last 15 years. Regarding the Council Annexation Guidelines, he referenced Item G and expressed concern that there is an undulation of'the boundaries at the south end of Area 7, south of University Drive, and there are little pockets of Costa Mesa that will be hard to distinguish from Newport Beach. He asked if the City should look at creating a logical boundary along University Drive. Council Member Nichols stated that he would like to see the City pursue this. Further, he would also like to have the City pursue the last portion of Volume 55 - Page 524 City of Newport Beach Study Session Minutes December 17, 2002 County -owned land that is in the Country Club. He pointed out that the City would not gain anything except continuity of land. Charles Griffin stated that there are people in Area 7 with horses and suggested that the City look at the horse and bicycle pathways so it is an uninterrupted pathway toward the fairground. Noting that there are older areas in Area 7 and that the property owners will have to conform to the City's codes, Mayor Bromberg asked if this will be difficult to do. Planning Director Temple stated that the City works well to minimize creating a lot of non - conformities, plus they can structure code adoptions to grant expanded grandfathering rights, if Council chooses to. She believed that possible conflicts that may arise between what they are used to compared to the City's code deal with operational codes, i.e. noise, water quality, and trash ordinances. She added that the businesses will also be subject to business regulations. PUBLIC COMMENTS - None. ADJOURNMENT - 5:30 p.m. to Closed Session to discuss the property located at 1221 West Coast Highway, specifically the terms and conditions of a proposed bifurcation of the Balboa Bay Club lease. The agenda for the Study Session was posted on December 12, 2002, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 525 INDEX CITY OF NEWPORT BEACH City Council Minutes DRAFT Regular Meeting December 17, 2002 - 7:00 p.m. INDEX STUDY SESSION — 4:30 p.m CLOSED SESSION — 5:30 p.m A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Absent: None C. CLOSED SESSION REPORT Mayor Bromberg announced that the City Council met with its real property negotiators to discuss the proposed bifurcation of the existing lease between the City and the Balboa Bay Club. The City Council gave general direction to the negotiators but did not vote on any specific proposal. D. PLEDGE OF ALLEGIANCE — Council Member Heffernan. E. INVOCATION— Mrs. Marianne McDaniel. F. PRESENTATIONS Taste of Newport Grant Presentations. Richard Luehrs, Newport Beach Chamber of Commerce President, introduced Phil Bettencourt, Chairman of the Newport Beach Chamber of Commerce Board. Mr. Luehrs stated that six nonprofit organizations serving the Newport Beach community were selected to receive this year's grants from the proceeds of the Taste of Newport. Mr. Bettencourt acknowledged the City for its part in making the Taste of Newport a success. He presented $2500 grant checks to the Boy Scout Sea Base, Newport -Mesa Schools Foundation, Human Options, Newport Beach Film Festival, Youth Employment Service and Leadership Tomorrow. Mayor Bromberg thanked the Chamber of Commerce for its support of the community. Volume 55 - Page 526 City of Newport Beach City Council Minutes December 17, 2002 INDEX Proclamation recognizing Jerry King for his outstanding leadership and contributions in the area of water resources planning, management and urban runoff in Orange County. Mayor Bromberg presented the proclamation to Jerry Icing, congratulating him on his contributions in the water and environmental fields, and wishing him happiness and success in his future endeavors. Mr. King stated that it has been a pleasure to serve the community and he thanked those who have supported him. Mayor Pro Tem Ridgeway additionally acknowledged Mr. King for his graciousness and all he has given to the community. Jan Debay, representing the Orange County Water District Board, stated that Mr. King is a great leader and a tremendous mentor, and that honor will continue to follow him. Proclamation for Environmental Nature Center. Bo Glover, Executive Director of the Environmental Nature Center (ENC), introduced Robert Shelton, President of the ENC Board, Robert House, founder of the ENC, and Dr. Norman Loats, ENC Board Member. Mayor Bromberg presented the proclamation recognizing the ENC as a natural and environmental resource of the highest quality to Newport Beach. Mr. Shelton thanked the City for the recognition. He stated that in 1972, Dr. House began to convert a 2 -% acre parcel of raw land into the natural wonderland that it is now. Mr. Shelton invited everyone to come by the ENC periodically and, particularly on the third Thursday of every month at noon for tours led by Dr. House. Mr. Shelton thanked the City Council for its support of the ENC. . Council Member Webb stated that the ENC is a wonderful resource and has been a great benefit to the scouting program. 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): • Council Member Heffernan requested a status report on the new traffic signal proposed for San Miguel Drive and Spyglass Hill Road. He stated that he'd like to include an update in his District 7 newsletter. • Council Member Proctor announced that the City is still moving forward on the potential for curtailing access in the West Newport area on the 4th of July. He stated that the July 4th West Newport Safety Planning Committee would be meeting again in January to look at the feasibility of such a proposal and how to contact the citizens Volume 55 - Page 527 City of Newport Beach City Council Minutes December 17, 2002 1010 s1:1 that would be affected. Council Member Proctor stated that it's important that the public provide their input, whether in opposition or support of the idea. • Council Member Webb requested that the creation of an ad hoc committee for the Mariners Joint Use Library be considered at a future City Council meeting. He explained that a grant and donations have been received, and it's important to see the project move forward as rapidly as possible. Council Member Webb suggested that the committee be comprised of a council member, a school board member, a library board member and the appropriate City staff members. He added that subcommittees might also be formed that would deal with the design of the library and any site issues. • Council Member Webb additionally requested that the creation of a citizens committee be considered that would plan for the City's centennial in September of 2006. He stated that anniversary books were produced for the City's 25th, 50th and 75th celebrations, and he'd like to see something fitting done for the centennial. • Mayor Bromberg reminded everyone that the City's 94th annual Christmas Boat Parade begins on Wednesday, December 18th. He noted that the event is sponsored by the Newport Beach Chamber of Commerce. I. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RE OLUTIONS 1. MINUTES OF THE REGULAR MEETING OF NOVEMBER 26, 2002. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. RESOLUTIONS FOR ADOPTION 3. RESOLUTION UPDATING THE LIST OF DESIGNATED Res 2002 -86 EMPLOYEES FOR 2003 UNDER THE CITY S CONFLICT OF Conflict of INTEREST CODE. Adopt Resolution No. 2002 -86 adopting the 2003 Interest Designated Employees List, as corrected by City Clerk Harkless to (66) change the title of the Harbor Resources Division Director to Harbor Resources Manager and Harbor Inspector to Assistant Manager. CONTRACTS AND AGREEMENTS 4. PROFESSIONAL SERVICES AGREEMENT WITH WILLIAM C -3075 AVERY & ASSOCIATES. Approve agreement for January 1 through Labor December 31, 2003 for $4,750 per month, as corrected by City Clerk Negotiations Harkless who noted that the agreement is for a twelve month period (38) Volume 55 - Page 528 City of Newport Beach City Council Minutes December 17, 2002 Volume 55 - Page 529 and not twenty-four months as noted in the attachment to the staff report. 5. BALBOA VILLAGE IMPROVEMENTS PHASE I (C -3333) — C -3333 COMPLETION AND ACCEPTANCE. 1) Accept the work; Balboa Village 2) authorize the City Clerk to file a Notice of Completion; 3) authorize Improvements the City Clerk to release the Labor and Materials bond 35 days after Phase I the Notice of Completion has been recorded in accordance with (38) applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 6. STREET IMPROVEMENTS — MONROVIA AVENUE FROM 15TH C -3471 TO 16TH STREET AND 16TH STREET FROM MONROVIA BA -029 AVENUE TO SUPERIOR AVENUE (C -3471) — COMPLETION Street AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Improvements/ Clerk to file a Notice of Completion; 3) authorize the City Clerk to Monrovia Avenue release the Labor and Materials bond 35 days after the Notice of & 16th Street Completion has been recorded in accordance with applicable portions (38/40) of the Civil Code; 4) release the Faithful Performance Bond one (1) year after Council acceptance; and 5) approve a budget amendment (BA -029) appropriating $26,000 from the unappropriated balance of the Gas Tax Fund to Account No. 7181- C5100643. 7. BUCK GULLY SEWER RELOCATION /SIPHON C -3566 ABANDONMENT (C -3566) — COMPLETION AND Buck Gully ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to Sewer Relocation/ file a.Notice of Completion; 3) authorize the City Clerk to release the Siphon Labor and Materials bond 35 days after the Notice of Completion has Abandonment been recorded in accordance with applicable portions of the Civil Code; (38) and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 8. NEWPORT BOULEVARDBALBOA BOULEVARD ROADWAY C -3373 AND STORM DRAIN REHABILITATION — AWARD OF Newport Blvd./ CONTRACT (C- 3373). 1) Approve the plans and specifications; Balboa Blvd. 2) award the contract (C -3373) to Sully Miller Contracting Company Roadway & for the total bid price of $1,767,365 and authorize the Mayor and the Storm Drain City Clerk to execute the contract; and 3) establish an amount of Rehabilitation $176,735 to cover the cost of unforeseen work and materials testing. (38) 9. Item removed from the Consent Calendar by Council Member Adams. 10. Item removed. from the Consent Calendar by Council Member Webb. MISCELLANEOUS ACTION 11. REAPPOINTMENT OF REPRESENTATIVE TO THE ORANGE Orange County COUNTY VECTOR CONTROL DISTRICT BOARD. Confirm Vector Control Mayor Bromberg's reappointment of Dr. Virginia Barrett to the District Board Orange County Vector Control District Board for a four -year term Appointment Volume 55 - Page 529 City of Newport Beach City Council Minutes December 17, 2002 ending December 31, 2006. 12. Item removed from the Consent Calendar by Council Member Heffernan. 13. APPROPRIATION OF $50,000 FROM THE AFFORDABLE HOUSING MITIGATION FUND TO CIP ACCOUNT #7014, C2700706 IN SUPPORT OF THE LOWER BAYVIEW AFFORDABLE SENIOR HOUSING PROJECT. Approve budget amendment (BA -028) to appropriate $50,000 from the Affordable Housing Mitigation Fund to Lower Bayview Affordable Senior Housing Project CIP. Motion by Mavor Pro Tern Ridgeway to approve the Consent Calendar, except for those items removed (9, 10 and 12) and noting the corrections to Item Nos. 3 and 4. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None J. ITEMS REMOVED FROM THE CONSENT CALENDAR 9. TRAFFIC FLOW OPTIMIZATION PROJECT — APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH MEYER, MOHADDES ASSOCIATES, INC. Council Member Adams stated that he's pleased to see the item before the City Council, although a bit disappointed that it's taken so long. He noted that he raised the issue in January of 2002 and is anxious to see the project get underway. In addition to traffic signal timing, the consultant is being asked to identify any marginal improvements to intersections. Council Member Adams stated that he's optimistic the efforts will result in motorists noticing a difference. He requested that the agreement identify the actual engineer who will be doing the timing component of the project, and noted that he already discussed this with the Public Works Director who stated that an organizational chart will be attached to the agreement. Motion by Council Member Adams to approve a professional services agreement with Meyer, Mohaddes Associates, Inc. of Anaheim for the Traffic Flow Optimization Project at a contract price of $235,760 and authorize the Mayor and the City Clerk to execute the agreement. Mayor Pro Tem Ridgeway confirmed with City Attorney Burnham that the contract will be modified to specify that the City has the right to cancel if the attachment is changed. Public Works Director Badum Volume 55 - Page 530 INDEX (24) BA -028 Affordable Senior Housing Project (40/68) C -3589 Traffic Flow Optimization Project (38) City of Newport Beach City Council Minutes December 17, 2002 INDEX stated that as is standard with all professional services agreements, the agreement does include a provision that requires permission of the City to substitute any key personnel. He further confirmed that an organizational chart would be attached to the agreement to reaffirm the personnel assigned to the project. Council Member Adams noted that the project is a good start to an effort that has been lacking for quite some time, but it will be important to stay on top of the issue if the full benefits are to be realized, even if it means additional staffing or a reorganization of the public works department. Bernie Svalstad, Corona del Mar, congratulated the City for addressing the issue and noted that it was one of his campaign pledges in his recent run for the District 6 City Council seat. Referring to Exhibit A of the agreement, Scope of Work, and specifically Task 4, technology enhancement recommendations and preliminary design of a traffic operations center, Mr. Svalstad stated that this is an important component of the project. He noted that it will take quite some time, but will be a necessity in the future. In conclusion, he asked that the City Council approve the staff recommendation. Council Member Heffernan asked how the City will work with CalTrans to implement the suggestions made by the consultant. He additionally asked for an explanation of how the project will dovetail with the work being done on the Corona del Mar Vision 2004 program. Council Member Nichols confirmed with Council Member Adams that the consultant is to provide suggestions which optimize the systems currently in place. Mayor Bromberg further explained that the project will provide for better traffic synchronization and end motorists having to stop at every light. Mayor Pro Tern Ridgeway repeated Council Member Heffernan's previous questions about the City's ability to modify the signals controlled by CalTrans. Public Works Director Badum stated that CalTrans does understand the need to have all of the traffic signals work together. He added that CalTrans will most likely require that the City balance regional traffic needs with local traffic needs if the takeover of Coast Highway in Corona del Mar is to occur. Mayor Bromberg asked if working with CalTrans will slow the process at all. Public Works Director Badum stated that the City will do its best to keep the project moving forward. He noted that the City probably has the best relationship it's had with CalTrans in several years. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Volume 55 - Page 531 City of Newport Beach City Council Minutes December 17, 2002 Bromberg Noes: None Abstain: None Absent: None 10. CORONA DEL MAR STATE BEACH IMPROVEMENTS — AMENDMENT NO, 1 TO PROFESSIONAL SERVICES AGREEMENT WITH ROBBINS JORGENSEN CHRISTOPHER ARCHITECTS. Council Member Webb asked for a description of the original project design, for a description of the proposed expanded scope of the project, what the new estimated cost would be and when the concept plans would'be available for review. Public Works Director Badum stated that it had always been envisioned that the restrooms and the concession buildings would be replaced, and that some type of lifeguard facility would be added. Since it was unknown how much the City could afford to spend, the scope of the project and the extent of the enhancements have been unclear. He added that there still needs to be public input provided also. Public Works Director Badum stated that the City started with approximately $500,000 from the American Trader oil spill account plus money from a State grant, and that the City is now recommending that more of the oil spill account money be used, for a project total of approximately $1,177,000. Council Member Nichols asked how the community would be reached to receive their input. Public Works Director Badum stated that the exact mode hasn't been determined, but that the City fully intends to get the information out and receive input. Council Member Nichols stated that the project involves a lot of money, and he'd like to see the community take part in the process. City Manager Bludau stated that the scope of work with the architect includes an outreach program, particularly with the area residents. Council Member Nichols stated that the residents have several issues they're concerned about and they need to be involved from the beginning. Council Member Adams confirmed with Senior Planner Berger that the Parks, Beaches & Recreation Commission has been involved during the initial phases of the project. Senior Planner Berger added that there is a three- tiered public outreach program planned, that will parallel the development of the design concepts being done by the architects. He stated that meetings with staff have already taken place, a committee of immediate residents will be established and then a broader public outreach process will occur. Senior Planner Berger stated that Corona del Mar is a State beach, which means that public use has to be preserved while the concerns of the local residents are also addressed. He stated that the Parks, Beaches & Recreation Commission will continue to be involved and that the item will be before the City Council on at least two more occasions. Council Member Nichols confirmed with Senior Planner Berger that mailings to the local residents have not yet been done. Senior Planner Volume 55 - Page 532 INDEX C -3461 BA -027 Corona del Mar State Beach Improvements (38/40) City of Newport Beach City Council Minutes December 17, 2002 Berger added, however, that some input has already been received from the public by way of a survey that was done which provided approximately 800 responses. Mayor Bromberg noted that the City has become very good at public outreach. Motion by Mavor Pro Tern Ridgeway to 1) approve Amendment No. 1 to Professional Services Agreement with Robbins Jorgensen Christopher Architects and authorize the Mayor and the City Clerk to execute the Amendment; 2) approve a budget amendment (BA -027) appropriating $365,535 in Division 7295 (Special Sources — Oil Spill Remediation) funds from interest and other oil spill projects to the Corona del Mar State Beach Improvements project (Account No. 7295- 05100569) as authorized by the American Trader Trustees on October 3, 2002; and 3) direct staff to appropriate any further investment earnings on remaining Oil Spill Remediation funds and any excess funds from completed oil spill projects to the Corona del Mar State Beach Improvements Project. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 12. REQUIRED REIMBURSEMENT OF LEGAL COSTS FOR ORANGE COUNTY LAFCO ASSOCIATED WITH A SIMPLE VOTE V. LAFCO OF ORANGE COUNTY. Council Member Heffernan noted that the issue is related to the Newport Coast annexation. After the protest period ended, a group of residents were dissatisfied and brought a lawsuit against the Orange County Local Agency Formation Commission (OC LAFCO) in an attempt to stop the annexation. The City had agreed to indemnify the County and also had legal fees of its own. Council Member Heffernan confirmed with City Attorney Burnham that the City is required to pay these fees even though the lawsuit was dismissed voluntarily. He made the observation that the resident had the legal right to file the lawsuit, but that the action did cost the City approximately $32,000. Motion by Mayor Pro Tem Ridgeway to 1) authorize the City Manager to pay Orange County LAFCO $20,865 to reimburse OC LAFCO for legal costs incurred by A Simple Vote u. LAFCO of Orange County; and 2) approve a budget amendment (BA -026) transferring $20,865 in unencumbered General Fund Reserves to the City Attorney's 8080 account. The motion carried by the following roll call vote: Volume 55 - Page 533 INDEX BA -026 Reimbursement of Legal Costs/ Newport Coast Annexation (21/40) City of Newport Beach City Council Minutes December 17, 2002 INDEX Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None K. PUBLIC COMMENTS • Jan Debay, Newport Beach, announced that Speak Up Newport will be holding the annual Mayors Dinner on February 18, 2003. She stated that the speakers will include Mayor Bromberg, Sheriff Corona and Peter Buffa. • Moisey Fridman, 1100 Rutland Road, stated that the City has given the cable television franchise rights to two companies, Adelphia and Cox Communications, and the City's territory is divided between them. He stated that residents have no choice on which company provides their cable television service. Mr. Fridman expressed his dissatisfaction with the rates that are being charged, particularly by Adelphia. He stated that the franchise fees that the cable companies pay to the City are part of their operating expenses and should not be passed on to the subscribers. In regard to the negotiations that are currently underway for the renewal of both franchise agreements, he requested that the City express the residents' dissatisfaction with the rates, and consider discounts for senior citizens or those on fixed incomes. Kory Flechtner, Executive Director of the Designated Drivers Association, encouraged the City Council to write letters of support for the Association's designated drivers program. She stated that the goal of the program is to stop people from drinking and driving. Ms. Flechtner.also encouraged the City Council to support any project grants or community involvement that might be available for such programs. She stated that there were approximately 12,000 driving under the influence (DUI) arrests in Orange County last year, with 1,800 people injured and 65 people killed. She stated that anyone interested in volunteering can call (949) 215 -0988. Ms. Flechtner explained that volunteers go out in teams of two to sponsor bars, with one driving the intoxicated driver's car home and the other following in their own car. She stated that it eliminates the excuse of driving under the influence in order to get one's car home or not leave it stranded. Council Member Proctor asked how the program is funded and if it is only in place during the holidays. Ms. Flechtner stated that the program operates year -round on Friday and Saturday nights from 10:00 p.m. to 2:00 am., and also on major drinking holidays. She stated that the program in Orange County is funded by Mitsubishi Motors and the sponsor bars, and that she is seeking additional grant funding. Council Member Proctor requested that she send additional information to him. Volume 55 - Page 534 City of Newport Beach City Council Minutes December 17, 2002 INDEX Mayor Pro Tem Ridgeway suggested that Ms. Flechtner contact the Restaurant Association Business Improvement District. She stated that she has already made arrangements to speak at their February meeting. • Don Albrecht, Vice Commodore of South Shore Yacht Club (SSYC), 2527 W. Coast Highway, stated that SSYC is the third oldest yacht club on the Newport bay and prides itself on keeping the yacht club affordable for those entering the yachting community. He announced that SSYC would be hosting an open house during each night of the Christmas Boat Parade this year. He stated that SSYC has been at their current location since 1963. Per Mayor Pro Tem Ridgeway's questions, Mr. Albrecht stated that the current paid membership of the yacht club is approximately 110 members, with approximately 87 full flag members, 18 nonresident members and the remaining consisting of racing crew and skippers. He added that the yacht club had a paid membership of approximately 180 three years prior, and that the reduction is probably due to new ownership of the land that they lease. He noted that the new owner has indicated that he'd like to take over the yacht club and remove SSYC from the site. He stated that this has caused quite a bit of controversy and doubt among the club members. Mr. Albrecht stated that they did have a first right of refusal to purchase the land in their previous lease, but the Board was unable to decide if they could afford it before the land was purchased. • Derrick Gleason, Santa Ana Heights, stated that he is extremely disappointed with the recently approved John Wayne Airport settlement agreement. He stated that increasing the annual passengers to 10.8 million and adding more gates was done without receiving a reduction in air noise or revenue sharing. Mr. Gleason stated that its also disappointing that the pursuit of another airport location has been abandoned. Lastly, he stated that he is disappointed that the City Attorney hasn't shown any respect for technology that could improve the quality of life for the community. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE • Status report — Ad Hoc General Plan Update Committee (GPUC). Council Member Adams stated that GPUC met on December 9, 2002, and that the main point of discussion was the future of the General Plan Advisory Committee (GPAC). He stated that since the outreach component of the general plan update is complete, the focus will shift to the consulting team that will take the input received and create the final document. Council Member Adams stated that GPAC led the visioning effort and it was decided that GPAC would be asked to continue their involvement, particularly with the review of some of the technical documents that will be produced. He stated that GPUC also formed a new subcommittee that would provide more focused direction to staff and the consultant groups. Volume 55 - Page 535 City of Newport Beach City Council Minutes December 17, 2002 • Status report — Local Coastal Program (LCP) Certification Committee. Mayor Pro Tern Ridgeway stated that the LCP Certification Committee met on December 16, 2002. The first draft of the LCP is written. He noted that it is a policy document that incorporates the General Plan of the City and that it needs to be submitted to the Coastal Commission no later than June 30, 2003, which makes the schedule tight to meet the deadline. He noted that the document is too large to load on the internet, but that it will be printed so that the public can review and comment on it. Mayor Pro Tern Ridgeway announced that the LCP Certification Committee would be meeting again on January 2, 2003, and that the meeting is open to the public. He stated that, after initial review, the document will be submitted to staff and then to GPAC, the Planning Commission and the City Council. Mayor Pro Tern Ridgeway concluded his comments by stating that the document is well drafted, but still needs publicinput. • Mayor Bromberg stated that he is a member of both GPUC and the LCP Certification Committee. He noted that these two committees and GPAC are the three committees that are directing the future of Newport Beach. Mayor Bromberg additionally noted that the LCP document would also be reviewed by the Environmental Quality Affairs Citizens Advisory Committee (EQAC), and that anyone who wants to comment on the document has the opportunity to do so. • As chairman of the Ad Hoc Telecommunications Committee, Council Member Heffernan stated that complaints are repeatedly received on the "dead" spots in the City with regard to cell phone usage. He stated that in January of 2003, a subcommittee will be formed to study where the areas are and determine if there are sites where the City can be a potential landlord. Council Member Heffernan additionally reported that the City is negotiating the renewal of the cable television franchise agreements, and noted that the City is limited on what it can require of the cable companies. He stated that the City will receive some concessions during the renewal process and that a public needs assessment, which was recently completed, will be utilized. He stated that Mr. Albrecht's earlier comments will be added to the other public comments received. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 14. PLANNING COMMISSION AGENDA FOR DECEMBER 5, 2002. Planning Director Temple reported that the agenda of the Planning Commission meeting of December 5, 2002, included six items, with four of them being relatively routine. These included a confirmation of staffs interpretation of the zoning code for a property at 500 Superior Avenue. Another involved an alcoholic beverage outlet use permit for a new restaurant in Fashion Island, which received approval, as did an amendment to the Fashion Island Planned Community District regulations regarding restaurant signs. Planning Director Temple Volume 55 - Page 536 1100 Planning Commission (68) City of Newport Beach City Council Minutes December 17, 2002 N noted that this item would be before the City Council in January. The Planning Commission also initiated an amendment to Title 19, the subdivision code. Planning Director Temple stated that the Planning Commission also considered an amendment to the zoning code regarding landmark buildings. She stated that the Planning Commission had several questions about the applicability of the regulations and how the changes would work. The item was continued to their meeting of January 9, 2003. Planning Director Temple stated that the Planning Commission spent a considerable amount of time discussing a use permit for the McDonald's on Coast Highway. She stated that there are several issues that still need to be resolved. In regard to the consideration of an amendment to the zoning code, Council Member Nichols noted Council Policy K -2, Places of Historical and Architectural Significance, and stated that there are three theaters in the City which fall within the definition. He stated that these facilities would not be required to get a use permit. Council Member Adams called for point of order and stated that the reports on the Planning Commission meetings are not up for debate. City Attorney Burnham stated that it would be appropriate to defer any substantive discussion of the item until the matter is before the City Council. Council Member Nichols stated that the public needs to know that the issue is being discussed at the Planning Commission level. Mayor Bromberg stated that the Planning Commission agendas are publicized on the internet and posted at City Hall. Council Member Adams added that the reason reports of the Planning Commission meetings are given at City Council meetings is to apprise the public of what's happening at the meetings. He stated that the Planning Commission meetings are not televised, so the item was added to the City Council's regular meeting agendas a couple of years ago to keep the public more informed. PUBLIC HEARINGS 15. APPEAL OF THE PLANNING COMMISSION'S APPROVAL OF VARIANCE NO. 2002 -007 AND MODIFICATION PERMIT NO. 2002 -103 (PA2002 -194). Mayor Bromberg announced that he would be recusing himself from voting on the item since the property under discussion is within 500 feet of his home. Planning Director Temple stated that the variance is for a property located at 1601 Balboa Avenue. The Planning Commission approved the project with several conditions, which included an increased Volume 55 - Page 537 INDEX Variance No. 2002 -007/ 1601 Balboa Avenue (91) City of Newport Beach City Council Minutes December 17, 2002 INDEX second floor setback at the rear of the property and a reduction in the number of square feet to 1,625. She noted that revised plans for the project were received from the applicant for a 1,705.5 square foot design. This and the rear setback for a fireplace or barbecue are the only remaining requests of the Planning Commission that are not being met with the new plans. Mayor Pro Tem Ridgeway opened the public hearing. He asked for a clarification on any opposition to the project. Assistant City Manager Wood stated that a letter was received in opposition to the variance from Mr. & Mrs. Madison, which Mayor Pro Tem Ridgeway thought had been withdrawn. Assistant City Manager Wood additionally pointed out that a letter in support of the project had also been received. Patricia Eckert, the applicant and property owner, stated that the architect, Ian Harrison, did a good job of designing a compact home that adds beauty to the area. She stated that she is looking forward to moving back to Southern California, joining her family, being a contributing member of the Newport Beach community and enjoying the Little Balboa Island lifestyle. She requested the City Council's approval of her appeal, consistent with the revised plans submitted to incorporate changes that were made in the spirit of cooperation. Mayor Pro Tem Ridgeway stated that the awning on Abalone Avenue seems to be the only remaining issue. Ms. Eckert stated that there is no awning. Council Member Webb stated that the revised plans show lattice work over the balcony area, which abuts the Madison property. Ian Harrison, architect, stated that there is lattice work across the front of the balcony on Abalone Avenue, but that the fireplace is being eliminated and everything is being pulled back to five feet. He stated that this is not shown on the plans. Council Member Webb pointed out that the Planning Commission recommendations don't allow for any type of roof over the second floor deck. Council Member Adams confirmed with Mr. Harrison that the revised plans do not reflect the proposal presented to the City Council. Jim Madison, 222 Abalone Avenue, stated that his only opposition when he reviewed the plans was the fireplace sticking out. He confirmed with Mr. Harrison that the fireplace was being eliminated. Additionally, Mr. Madison confirmed that everything would be pulled back to the five -foot mark. He stated that with these confirmations, he is satisfied with the project. Council Member Webb asked if Mr. Madison had any concerns about the lattice work. Mr. Madison stated that he did not, as long as it stayed within the five -foot mark. Council Member Webb stated that he would normally support the Volume 55 - Page 538 City of Newport Beach City Council Minutes December 17, 2002 Planning Commission's decision since they use a reasonable setback approach but in this case, both property owners are in agreement and the difference is only a matter of 80 square feet. Motion by Council Member Webb to approve the appeal, subject to the five -foot second story setback and the elimination of the chimney. Council Member Nichols stated that the three lots that face Balboa Avenue were originally two lots, making the lot sizes slightly less than two thirds of normal lot size. He added that the other properties on Abalone Avenue have at least ten to fifteen -foot setbacks, and the properties on Balboa Avenue have six to ten -foot setbacks. Council Member Nichols noted that he understands that the Eckert property needs a reduced setback, but he pointed out that it's going to be a monument on the sidewalk and will set a precedent for other properties. Mayor Pro Tem Ridgeway stated that the issue provides a good example of when a variance should be considered. Hearing no further testimony, Mayor Pro Tem Ridgeway closed the public hearing. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb Noes:. Nichols Abstain: Mayor Bromberg Absent: None 16. MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT: CONDUCT PUBLIC HEARING AND ADOPT RESOLUTION CONFIRMING THE LEVYING OF ASSESSMENTS FOR FISCAL YEAR 2003. Senior Planner Berger stated that, if approved, the Marine Avenue Business Improvement District (BID) would begin its eighth year of continuous operation on Balboa Island. He noted that both the president and secretary of the BID could not be in attendance at the current meeting, but wanted the City Council to know that with strong involvement from its members, the BID has accomplished its mission of promoting Balboa Island and Marine Avenue, as well as beautifying and maintaining the area. Senior Planner Berger reported that no protests were received opposing the BID renewal. He asked for the City Council's support in renewing the BID. Mayor Bromberg opened the public hearing. Hearing no testimony, Mayor Bromberg closed the public hearing. Volume 55 - Page 539 INDEX Res 2002 -87 Marine Avenue BID (27) City of Newport Beach City Council Minutes December 17, 2002 Motion by Mayor Pro Tern Rideewav to adopt Resolution No. 2002 -87 confirming the Marine Avenue Business Improvement District Annual Report and levying the BID assessment for the 2003 fiscal year since the protests represented less than 50 percent of the total assessment amount. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 17. RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT: CONDUCT PUBLIC HEARING AND ADOPT RESOLUTION FOR RENEWAL OF THE RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2003. Associate Planner Trimble reported that no protests were received opposing the BID renewal. Mayor Bromberg opened the public hearing. Hearing no testimony, Mayor Bromberg closed the public hearing. Motion by Mayor Pro Tern Ridgeway to adopt Resolution No. 2002 -88 confirming the Restaurant Association Business Improvement District Annual Report and levying the BID assessment for the 2003 fiscal year since the protests represented less than 50 percent of the total assessment amount. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None O. CURRENT BUSINESS 18. VIRTUAL FAQ PRESENTATION [ORAL REPORT — NO ACTION]. Administrative Services Director Danner stated that "FAQ" stands for Frequently Asked Questions, and noted that the presentation was requested by Council Member Heffernan. Using a PowerPoint presentation, Administrative Services Director Danner stated that City staff began investigating using Interactive Voice Response (IVR) as a means of automating some of the day to day business functions Volume 55 - Page 540 INDEX Res 2002 -88 Restaurant Association BID (27) Virtual FAQ's/ Interactive Voice Response (IVR) System (40) City of Newport Beach City Council Minutes December 17, 2002 INDEX that were normally conducted over the telephone. New technology now offers customers the choice of using either a touch tone telephone or a computer with internet access to obtain information and conduct business transactions. He stated that the initial purpose was to automate the scheduling of building permits and that it was later determined that there were additional needs beyond the more traditional IVR applications. Administrative Services Director Danner stated that after the IVR/Web based application for the Building Department was completed, dial out applications for the Revenue Division were completed. The next application to go live provided municipal services statement account balances and facilitated the payments using a credit card. Administrative Services Director Danner stated that the most recent application provides static prerecorded information to customers and was designed to provide customers with answers to their most frequently asked questions. He stated that nearly 300 scripts were edited, compiled and professionally recorded in a sound studio. The information can be accessed by using either a telephone or the internet. Administrative Services Director Danner reported that a guide to using the system was recently completed and mailed to 52,000 residences and businesses in the City. He stated that the information can be accessed 24 hours a day, 7 days a week, with the option to receive several documents via fax machine. He displayed the long list of topics that are included in the brochure. Administrative Services Director Danner demonstrated the use of the system. He dialed (949) 644 -3211 and pressed a few of the codes, which prompted the prerecorded messages of those topics selected. He introduced Management Information Systems (MIS) Manager Malkemus, who did much of the work for the new system. Mayor Bromberg complimented the wide range of topics included in the system and the time that it will save staff. Mayor Pro Tem Ridgeway asked if there was a complaint section. MIS Manager Malkemus stated that the system is currently not designed for customer feedback, but it could be implemented. In response to Council Member Proctor's question, MIS Manager Malkemus stated that the system cost approximately $89,000. Council Member Heffernan asked if other cities currently use such a system. MIS Manager Malkemus stated that several cities do, such as Huntington Beach and Diamond Bar. Council Member Heffernan additionally asked if there was a cost benefit to using the system. Administrative Services Director Danner stated that it does free up staff time. Council Member Heffernan agreed that it provides better service by providing precise information, with the option for the customer to talk with someone if they desire. Mayor Bromberg stated that it is an effective program and thanked Volume 55 - Page 541 City of Newport Beach City Council Minutes December 17, 2002 the Administrative Services Department for the presentation and putting the program together. P. MOTION FOR RECONSIDERATION - None. Q. ADJOURNMENT - at 5:00 p.m. in the memory of Dorothy Brittingham Koll. The agenda for the Regular Meeting was posted on December 11, 2002, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 542 INDEX