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HomeMy WebLinkAbout01 - 01-14-2003City Council Meeting January 28, 2003 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session January 14, 2003- 4:00 p.m. ROLL CALL DRAFT INDEX Present: Heffernan, Proctor, Ridgeway, Nichols, Mayor Bromberg, Webb (arrived at 4:55 p.m.) Absent: Adams (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan announced that he would be pulling Item Nos. 11, 12 and 14 at the evening meeting. Regarding Item No. 10, Per Capita Grant Program Allocation, City Manager Bludau confirmed for Mayor Pro Tem Ridgeway that the grant is a reimbursable grant. Mayor Pro Tem Ridgeway additionally asked for a clarification on Item No. 9, Request for Funding for Proposed Underground Assessment District No. 99. He asked for an explanation of the requirements of Proposition 218 and how the ballots are weighted by financial obligation. Public Works Director Badum stated that Proposition 218 requires the City to send ballots to all affected property owners and conduct a protest hearing. If the majority of the ballots received are in favor of the assessment district, the City levies the assessments and forms the district. He noted that the cost is parceled out according to benefit. Per Council Member Nichols' question, Assistant City Manager Wood 'stated that Item No. 8, Review and Approval of Contract Renewal with LDM Associates for Administration of the Community Development Block Grant Program, does not involve Mariners Mile. Council Member Nichols asked for an overview of what is included in the Mariners Village Improvement Project, Item No. 7. Public Works Director Badum stated that the project is the first phase of what may be multiple phases of a concept for Mariners Mile that was previously approved by the City Council. He stated that it might include new street trees and furniture, but does not include a relocation of the curb lanes. Additionally, Public Works Director Badum explained that traffic calming was a part of the original concept due to the concern of nearby residents about the speed of traffic on Riverside Avenue. Council Member Nichols expressed his concern that the Big Canyon Creek Restoration Project, Item No. 6, might be too extensive. Mayor Bromberg suggested having a discussion on the matter at the evening meeting. Assistant City Manager Kiff additionally pointed out that it would be the topic of the next Volume 55 - Page 543 City of Newport Beach Study Session Minutes January 14, 2003 item at the current meeting. Council Member Nichols asked if the improvements to Jamboree Road included in the 2002 -2003 Combined Transportation Funding Program Application, Item No. 3, included a flyover. City Manager Bludau stated that it does not, but that it does include additional lanes on the existing bridge. Public Works Director Badum added that the proposed project would actually replace the need for a flyover, and that additional exhibits would be available prior to the evening meeting that would help to clarify the issue. 2. UPPER NEWPORT BAY RESTORATION PROJECTS. Using PowerPoint, Assistant City Manager Kiff pointed out that he would be making a presentation on two Upper Newport Bay projects, the Big Canyon Restoration Project and the West Bay Boardwalk and Restoration Project. He stated that the Big Canyon project would address the areas within Big Canyon Nature Park, which receives urban runoff from approximately two square miles. He stated that the project would address a number of concerns. Assistant City Manager Kiff introduced Brian Shelton with the California Department Fish and Game, and Esther Feldman and Andy Carey from Community Conservancy International, Assistant City Manager Kiff displayed two aerial photos showing the urban runoff flows into Big Canyon Creek and the drainage basin. He additionally displayed photos showing some of the damage and erosion caused by the runoff, and the structures that have been built to carry the runoff. Additional photos showed deposited dredging spoils and exotic species that should not appear in the area. Assistant City Manager Kiff stated that the State Coastal Conservancy is planning to fund $167,000 of the Big Canyon project, with another $10,000 coming from the Newport Bay Naturalists and Friends, and $17,000 from Community Conservancy International. Assistant City Manager Kiff stated that Item No. 6, Big Canyon Restoration Project, of the evening meeting would be recommending the City Council's approval of $110,000 for the project's planning and technical studies. He noted that the City is also expecting to receive $4 million from the Wildlife Conservation Board and Propositions 40 and 50 for the construction of the project. In response to City Manager Bludau's question, Assistant City Manager Kiff stated that the City's contribution would come from revenue that has been set aside from the Beacon Bay leases, which is required to be applied to habitat improvements in Upper Newport Bay, Council Member Nichols stated that the Big Canyon area is overgrown, appears to be a fire hazard and doesn't have adequate public access. Ms. Feldman stated that the project will address the overgrowth and look at a comprehensive public access component. In response to City Manager's Bludau question, Ms. Feldman stated that the planning process will take approximately one year and will result in several alternatives for how to restore a marine -type influence into Big Canyon Creek. She noted that three 15 -inch pipes provide the only drainage for the area, Council Member Nichols stated that flooding doesn't appear to be a problem. Assistant City Manager Kiff stated that there was some flooding in 1998 and 1999. Volume 55 - Page 544 INDEX Upper Newport Bay Restoration Projects (51) City of Newport Beach Study Session Minutes January 14, 2003 INDEX Mayor Pro Tem Ridgeway asked if other funds were available for the upper watershed storm drain system, noting that it would be considered a capital improvement project and not an environmental project. Assistant City Manager Kiff stated that it was hoped that the restoration project could be combined with the storm drain project with money from the Wildlife Conservation Board. Assistant City Manager Kiff displayed two aerial photos showing the area of the West Bay project. He specifically pointed out trails that the public should not be using due to the damage it causes to the habitat. He stated that the project would install two miles of elevated boardwalks and trails, public access points and viewing platforms. Mayor Pro Tem Ridgeway stated that there's a bluff about fifteen feet above the water level and another higher one closer to Irvine Avenue. He asked for a clarification as to which bluff the trails would be placed on. Assistant City Manager Kiff showed the different bluffs on the aerial photo and stated that Ms. Feldman might be able to answer the question later in the presentation. Assistant City Manager Kiff continued with his presentation by listing some of the goals of the project. He also displayed information on how the project is expected to be funded. The County's share of the American Trader Oil Spill money is expected to fund the research, site analysis and schematic design phases of the project, which will cost approximately $378,000. Assistant City Manager Kiff stated that the Wildlife Conservation Board, through Propositions 40 and 50, is also expected to fund the construction phase of this project, which is expected to total approximately $3 million. He noted that staff members from the Wildlife Conservation Board have visited the areas of both of the projects and have told the City that they will support them. City Manager Kiff expressed his confidence that the two projects will receive priority due to the fact that the areas fall within California Department of Fish and Game property. Lastly, he listed the project partners and proponents, and some web sites where more information could be obtained. Council Member Nichols stated that the Delhi Channel is not a part of Upper Newport Bay, nor is it reserved for habitat. He suggested that the west side of the channel be used for baseball fields instead. Assistant City Manager Kiff stated that the area is a part of the County's regional park, which is set aside for habitat and passive uses. He added that although the area under discussion might not be an actual part of the bay, it is important wetlands and marshlands in the State's Upper Newport Bay ecological reserve system. Council Member Nichols stated that the area has little water and has already been accessed by the public in the past. Ms. Feldman noted that the aerial photo was taken at extreme low tide. Mr. Shelton stated that the area represents 10% of the State's remaining wetlands. He explained that an area doesn't necessarily have to hold water year round to be designated as a wetland. It may be only seasonably wet. He additionally noted that the Upper Newport Bay area houses seven endangered species and a wide variety of habitat, which acts as a complete system. Mr. Shelton stated that the surrounding areas are considered upland areas, which have different characteristics. He noted that the upland areas of Upper Newport Bay do house breeding birds and endangered species, but that there would be more if the human intrusion were less. Volume 55 - Page 545 City of Newport Beach Study Session Minutes January 14, 2003 INDEX Council Member Proctor called for point of order and noted that the Study Session item before the City Council was to discuss the boardwalk. Mr. Shelton concluded his comments by stating that the majority of the boardwalk is not proposed on the Delhi Channel, but would encompass more of the bluff. Mayor Pro Tem Ridgeway asked for a more specific description of where the proposed boardwalk would be located. He noted that people are attracted to the water's edge, so if the boardwalk were on a high bluff, an opportunity might be missed. He suggested that a second boardwalk be considered, if necessary. Ms. Feldman stated that Mayor Pro Tem Ridgeway's comments reflect the problems trying to be addressed with the project. She stated that the proposed boardwalk will be down by the water where suitable. She stated that the project will also deal with the proximity issue of humans and wildlife. Mayor Pro Tem Ridgeway stated that Back Bay Drive and it's proximity to habitat should provide some evidence of the effect of humans on wildlife. Jack Keating, Newport Bay Naturalists and Friends President, stated that the Newport Bay Naturalists and Friends organization is trying to continue the legacy of the Friends of Newport Bay and the efforts of Frank and Francis Robinson. He thanked the many supporters of the two projects. City Manager Bludau asked who would maintain the boardwalks after construction. Assistant City Manager Kiff stated that an agreement would need to be reached since the areas cross City, County and State property lines. Mayor Pro Tem Ridgeway stated that an e-mail was received earlier in the day by the council members. He confirmed that Assistant City Manager Kiff had seen it and asked how he'd respond. Assistant City Manager Kiff stated that the citizen had asked how a boardwalk could contain people. He stated that it could if it gets people close enough to the water, and an education and interpretation program is a part of it. Mr. Shelton stated that he also read the e -mail, but stated that many of the citizen's concerns were based on misinformation. He contacted the individual, and they both came to the agreement that a balance between recreation by the public and needs of the wildlife can be effectively reached. Council Member Nichols asked how equestrian use would be affected by the project. Assistant City Manager Kiff stated that the area is currently accessible for equestrian use and would continue to be accessible on designated trails, but not on the newly proposed boardwalks. Assistant City Manager Kiff introduced Tom Rossmiller, the City's new Harbor Resources Manager. Mayor Bromberg welcomed Harbor Resources Manager Rossmiller to the City. Harbor Resources Manager Rossmiller stated that he worked for the County for nearly thirty years, developing their water quality monitoring program and working on a variety of projects along the coast. He stated that he was also the project manager for the Upper Newport Bay ecosystem restoration project and has worked on several sand replenishment projects. Volume 55 - Page 546 City of Newport Beach Study Session Minutes January 14, 2003 Recessed at 4:55 p.m. and reconvened at 5:00 p.m with all members present except Council Member Adams. 3. REVIEW OF AFFORDABLE SENIOR HOUSING DEVELOPMENT AT LOWER BAYVIEW LANDING AND VIEW PARK DEVELOPMENT AT UPPER BAYVIEW LANDING. Assistant City Manager Wood stated that staff and the Affordable Housing Task Force have been working with The Irvine Company and The Related Companies to put together a project for senior affordable housing at the Lower Bayview Landing site. She noted the preliminary plans on display and the 150 units proposed for the affordable housing project. She stated that the units would be available to those 55 years of age or older. She stated that The Irvine Company is providing the site, as well as a grant to The Related Companies in the amount of $250,000. Assistant City Manager Wood noted that the project will require funding from a number of sources in order for it to be financially feasible. She stated that the developer is planning to use tax exempt bonds from the State, as well as tax credits. In addition, a tentative agreement has been reached for the City to provide a loan of $1 million, which would come from the City's affordable housing in -lieu fund. Assistant City Manager Wood stated that if the Coastal Commission approves the project by the summer of 2003 and the State approves the financing by the end of 2003, the project would not be subject to a new State requirement to pay prevailing wages for projects that are assisted with public funds, which would cause an increase to the overall cost of the project and the City's contribution. She stated that a staff report for the loan agreement is expected to be before the City Council at their meeting of January 28, 2003. Assistant City Manager Wood stated that the Lower Bayview Landing project is closely related to the Upper Bayview Landing view park development. She stated that it would be beneficial to have the two projects done cooperatively. Mayor Bromberg stated that the Affordable Housing Task Force has been working on the project for quite some time. He noted that he and Mayor Pro Tem Ridgeway serve on the task force and that they have been working closely with The Related Companies. Council Member Heffernan asked what the City's current deficit for affordable housing is. Assistant City Manager Wood stated that prior to the Newport Coast annexation, the City's goal was to have approximately 250 low and moderate income units and another 250 units that would be at market rate. She stated that with the annexation, the goal increased by 200 units in the affordable category. Council Member Heffernan confirmed that the City is approximately 450 units short of its goal. He additionally asked how the amount owed by a developer for affordable housing in -lieu fees is determined. Assistant City Manager Wood stated that the in -lieu fees for the One Ford Road project were handled through the development agreement, and the fees for Sail House were set at the same rate plus a Consumer Price Index (CPI) inflation rate. She added that the new housing element of the general plan will include a more formal in -lieu program. In response to Council Member Heffernans questions, Assistant City Manager Wood stated that there are two planned communities in the Newport Coast area that were developed under the County's jurisdiction. She stated that each has an affordable housing implementation Volume 55 - Page 547 Affordable Senior Housing Development (68) City of Newport Beach Study Session Minutes January 14, 2003 flU1 a:� plan, and that those goals will be incorporated into the Uity s new housing element. Mayor Pro Tem Ridgeway stated that the City's proportionate share of the region's housing is established through the Southern California Association of Governments (SCAG) and the State Department of Housing and Community Development (HCD). He stated that the regional housing needs assessment establishes the City's share of housing for both market rate and affordable housing in the Southern California region. Mayor Pro Tem Ridgeway stated that the Upper Bayview Landing project makes a significant dent in the affordable housing component. Council Member Proctor asked for more information about the prevailing wages issue mentioned earlier in the meeting, and how affordable housing is kept affordable once it is developed. In regard to keeping affordable housing affordable, Assistant City Manager Wood stated that the City would require a covenant to require that the units remain affordable for the income level they were designed for and for the period of time designated. In regard to the prevailing wages issue, she stated that new State legislation subjects any project that is funded with public money to pay prevailing wages, with a one year exception for affordable housing projects. She stated that it was determined that this would increase the project's cost by approximately $500,000. Mayor Pro Tem Ridgeway stated that Senate Bill 975 (SB 975) was effective a year ago and exempted affordable housing projects for two years. He added that the legislation was supported by the unions to insure that they would receive prevailing wages. He stated that there are discussions in Sacramento about this being an anti - housing bill, which could result in affordable housing being exempt. Council Member Nichols stated that he calculated the additional cost to be approximately $700,000 and asked if this shouldn't be paid by the developer instead of the City. Assistant City Manager stated that the money that will be used is from the City's in -lieu affordable housing fund, which is money received from previous developers in -lieu of developing affordable housing. She stated that this requires the City to use the money for affordable housing projects. Council Member Nichols asked if there was enough money in the fund to pay for the proposed project. Assistant City Manager Wood stated that the fund currently totals approximately $2.5 million and that staff will recommend that the City Council approve a loan in the amount of $1 million, to possibly increase to $1.5 million if the prevailing wages have to be paid. She added that if additional money is needed, negotiations would take place and City Council approval would be needed if the City's contribution were to increase. Council Member Webb asked how much the City is contributing by waiving the planning and fair share fees. Assistant City Manager Wood pointed out that the municipal code requires the City to waive the fair share fees for affordable housing projects but, per the City's housing element, the waiver of the planning development review fees can be decided upon by the City Council. Associate Planner Trimble stated that the amount of both waivers represents approximately $235,000. Council Member Webb confirmed with Assistant City Manager Wood that the building closest to Coast Highway in the Upper Volume 55 - Page 548 City of Newport Beach Study Session Minutes January 14, 2003 Bayview Landing project is proposed to be three stories. Gino Canori, The Related Companies, stated that he is the project manager and the proposal is for three -story buildings with two -story elements at the front and rear of each of the buildings. In response to Mayor Bromberg's question, Mr. Canori stated that there would be no mechanical equipment on the roofs. In response to Council Member Webb's question, Mr. Canori stated that the height of the midpoint of the roofline is proposed to be 65 feet above sea level, or 35 feet above finished grade. Council Member Webb expressed his concern that views would be lost through the central portion of the project. Mr. Canori stated that the roof pitch would not impact any view corridor from Coast Highway or Villa Point. He added that they are in the process of putting together a view simulation. Council Member Webb expressed his concern about the grading that is proposed. He stated that story poles would be important to show the view impacts. Mayor Pro Tem Ridgeway stated that it might be premature for story poles, since the project still needs to be reviewed by the Planning Commission and the Coastal Commission. He stated that view studies will be included, that the plans may change and that the developer is well aware of the concerns for maintaining the views. Val Skoro, Parks, Beaches & Recreation (PB &R) Commissioner, stated that the PB &R Commission has been involved for several years with the transformation of Upper Bayview Landing into a park. He stated that there have been three concepts, but they'd like the opportunity to review the current proposal. Mr. Skoro suggested that the plans and appropriate personnel be available at the next meeting of the Park Development Subcommittee on January 21, 2003. City Manager Bludau confirmed that staff would be available at the meeting. Mr. Gennary further confirmed that staff from The Related Companies would also be present. Mayor Bromberg directed staff to continue moving forward on the project. He stated his support for the City being in compliance with the requirements for affordable housing. Mayor Pro Tem Ridgeway stressed the importance of having the financing approved by the end of 2003. He suggested that a precise site plan be included with the January 28, 2003, staff report. Assistant City Manager Wood added that the park project will need to move forward as quickly as the housing project to take advantage of concurrent processing with the Coastal Commission. PUBLIC COMMENTS - None. ADJOURNMENT - at 5:30 p.m. to Closed Session to discuss two real estate items, one dealing with 3600 East Coast Highway and the other with the Balboa Bay Club. Volume 55 - Page 549 City of Newport Beach Study Session Minutes January 14, 2003 The agenda for the Study Session was posted on January 8, 2003, 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 550 INDEX CITY OF NEWPORT BEACH City Council Minutes Regular Meeting January 14, 2003 - 7:00 p.m. STUDY SESSION - 4:00 p.m CLOSED SESSION - 6:00 p.m r, rrt ,r,r,r,r,r,r,rex,r,r,r,r,r,r 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 - None. D. PLEDGE OF ALLEGIANCE - Council Member Webb. E. INVOCATION - Patrick Thompson, Assistant to the Pastor, Presbyterian Church of the Covenant, Costa Mesa F. PRESENTATION Proclamation recognizing the heroism demonstrated by Pieter Bourges. Vickie Cleary, Newport Beach Fire Department Emergency Medical Services (EMS) Manager, reported that Pieter Bourges performed CPR on former City Manager Robert Wynn who suffered a cardiac arrest at the Corona del Mar Ruby's Diner on December 20, 2002. She stated that CPR allows some circulation while 911 personnel can respond and it also improves the chance of survival. She noted that this happens less than 5% of the time. She stated that it is extraordinary that Mr. Bourges took this action and presented him with a Newport Beach Fire Department Life Saving Award. Mayor Bromberg read the proclamation recognizing Mr. Bourges' heroism and presented it to him. Robert Wynn stated that, in 1982 when the paramedic service was established, he told the City Council that it was too expensive and would increase the budget too much. However, he is now testifying that they are not paid enough and do not have all the proper equipment they need. He Volume 55 - Page 551 INDEX Pieter Bourges (35) City of Newport Beach City Council Minutes January 14, 2003 INDEX thanked Mr. Bourges, Council, and the paramedics. Doug Cavanaugh, Co- Founder of Ruby's Diner, thanked Mr. Bourges for being courageous and doing the right thing. He stated that he makes everyone at Ruby's Diner proud. He also thanked Mr. Wynn because, without him 20 years ago, there would not be a Ruby's Diner. Pieter Bourges thanked the City for the proclamation. He also thanked God for giving him the courage to do something like this. He stated that, if he had to do this again, he would be more comfortable doing it. 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 Nichols requested a report relative to the cost for upkeep and liability of Pacific Coast Highway, and how it will affect the City's ability to expand if it wanted to do a capital improvement project. • Mayor Pro Tem Ridgeway requested that a policy come back on future agenda regarding the naming of buildings, parks, etc. • Council Member Heffernan asked when the conflict of interest campaign reform study will be agendized. Mayor Bromberg requested that the City Manager coordinate this with Council Member Heffernan. • Council Member Heffernan requested a study session item regarding the Bonita Canyon Sports Park that includes a recap of the project, its availability, etc. • Council Member Heffernan reported that the Friends of the Library need used books. He noted that the books can be dropped off at the library or can be picked up by the Friends of the Library. • Council Member Heffernan reported an incident from January 6, 2003, in which a surfer was blown 1'/z miles offshore by the Santa Ana winds. He stated that it took a coordinated effort with Newport Beach, Huntington Beach, and rescue boats to save her, adding that a helicopter could not be used because of the winds. He warned everyone that the ocean may not always be friendly. Mayor Bromberg requested that a Council retreat be scheduled after State budget decisions have been made. I. CONSENT CALENDAR READING OF MINUTES/ORDINANCES AND RESOLUTIONS Volume 55 - Page 552 City of Newport Beach City Council Minutes January 14, 2003 1. MINUTES OF THE ADJOURNED REGULAR MEETING OF DECEMBER 10, 2002 AND ADJOURNED REGULAR AND REGULAR MEETING OF DECEMBER 17, 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. Removed at the request of Council Member Nichols. 4. RESOLUTION EXTENDING THE AD HOC OIL AND GAS COMMITTEE. Adopt Resolution No. 2003 -2 extending the term of the Ad Hoc Oil and Gas Committee 5. SALE OF BONDS FOR UNDERGROUND ASSESSMENT DISTRICT NO. 86. 1) Adopt Resolution No. 2003 -3 which sets forth the terms and conditions for the sale of bonds and approves the Purchase Agreement submitted by the designated underwriter for Assessment District No. 86; and 2) approve a budget amendment (BA -038) adjusting revenue estimates in Account No. 400.6986 in the amount of $545,160 to reflect contributions from property owners and the sale of bonds and increase expenditure appropriations in the amount of $477,160 in Account No. 7401- C5100490 to accommodate contribution costs. CONTRACTS AND AGREEMENTS 6. Removed at the request of Council Member Nichols. 7. APPROVE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH METROPOINTE ENGINEERS FOR THE MARINERS VILLAGE IMPROVEMENT PROJECT. Approve Amendment No. 1 to the Professional Services Agreement with MetroPointe Engineers of Costa Mesa for the Mariners Village Improvement Project at a contract price of $21,870 and authorize the Mayor and City Clerk to execute the Amendment. 8. REVIEW AND APPROVAL OF CONTRACT RENEWAL WITH LDM ASSOCIATES FOR ADMINISTRATION OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FOR FISCAL YEAR 2002 -2003. Approve the proposed contract renewal with LDM Associates. 9. REQUEST FOR FUNDING FOR PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 99 (ALLEY BOUNDED BY MCFADDEN PLACE, BALBOA BOULEVARD, 14TH STREET, AND OCEAN FRONT WEST). 1) Authorize a budget amendment (BA -036) to appropriate $100,000 in the Assessment District Capital Project fund to proposed Assessment District No. 99, Account No. Volume 55 - Page 553 INDEX Res 2003 -2 Ad Hoc Oil & Gas Committee (24) Res 2003 -3 BA -038 Underground Assessment District 86 (40/89) C -3507 Mariners Village Improvement Project (38) C -3489 CDBG Administration for Fiscal Year 2002 -2003 (38) C -3595 BA -036 Underground Assessment District 99 (38/40/89) City of Newport Beach City Council Minutes January 14, 2003 INDEX 7401- C5200707; and 2) authorize the City Manager to execute a Professional Services Agreement with Harris & Associates in an amount not to exceed $55,000 for assessment engineering and district coordination services. Council Member Adams recused himself due to a potential conflict. MISCELLANEOUS ACTION 10. BUDGET AMENDMENT - PER CAPITA GRANT PROGRAM BA -031 ALLOCATION IN THE AMOUNT OF $685,000 APPROVED Per Capita DECEMBER 11, 2001 - CONTRACT NO. C2003284. Approve a Grant Program Budget Amendment (BA -031) to increase revenue estimates by (62) $350,000 in account 7251- C4310708 for FY 2002/03; the remaining balance of $335,000 should be budgeted into revenue account 4310- 4387 for FY 2003/04. 11. Removed at the request of Council Member Heffernan. 12. BUDGET AMENDMENT TO APPROPRIATE ADDITIONAL BA -030 FUNDS FOR RESIDENTIAL REFUSE COLLECTION Residential Refuse SERVICES IN THE NEWPORT COAST AREA. Approve a budget Collection Services in the amendment (BA -030) to appropriate additional funds in the amount Newport Coast Area of $93,600 for Account 3150 -8080 to provide for the additional cost of (40/44) residential refuse collection services in the Newport Coast area. 13. BUDGET AMENDMENTS TO ACCEPT TWO CHECKS FROM BA- 034/BA -035 THE CALIFORNIA STATE LIBRARY AND APPROPRIATE Homebound Program/ FUNDS FOR LIBRARY SERVICES TO SENIORS Public Library (HOMEBOUND PROGRAM) AND FOR PUBLIC LIBRARY Staff Education STAFF EDUCATION. Approve budget amendments (BA -034) in (40/50) the amount of $20,682 and (BA -035) in the amount of $11,352. 14. Removed at the request of Council Member Heffernan. Motion by Mayor Pro Tern Ridgeway to approve the Consent Calendar, except for those items removed (3, 6, 11, and 14) and noting Council Member Adams' recusal on Item 9. 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 3. 2002/2003 COMBINED TRANSPORTATION FUNDING Res 2003 -1 PROGRAM APPLICATION. Transportation Volume 55 - Page 554 City of Newport Beach City Council Minutes January 14, 2003 INDEX In response to Council Member Nichols' questions, Public Works Funding Program Director Badum reported that the recommendation is to approve the (74) Measure M application for competitive funding. He explained that the program cycles every two years and requests cities to provide a list of potential projects. He noted that the City is only asking for funding for the Jamboree Road Bridge Widening Project since the City has been successful in improving the streets and keeping up with the Master Plan. He indicated that the widening may eliminate the plan for a fly -over connecting ramp that would rise over the Fletcher Jones dealership and be higher than the Bristol Street Bridge. He noted that the plan highlighted on the map (Attachment A) was originally developed by the Transportation Corridor Agencies (TCA) in 1991. He stated that the idea was to add a fly -over ramp to handle northbound Jamboree Road traffic onto northbound SR -73. He reported that, since that time, they have evaluated the Master Plan and realized that the projection of traffic volume on Jamboree Road was incorrect. He noted that they are conducting an analysis in an effort to reduce the Master Plan width of Jamboree Road. He indicated that more people are getting on the freeway via MacArthur Boulevard since it has been improved. He added that the project would also eliminate the existing Birch Street offramp on northbound SR -73. Mr. Badum indicated that Attachment A was generated from an old TCA plan. He believed that a good alternative to the fly -over ramp is to widen the Jamboree Road Bridge to add additional width for through lanes and turning movements at the Bristol Street south and north intersections. Mr. Badum reported that the first phase is the design phase (Tier I). He clarified that the Measure M program has two phases, the first phase actually occurs and is funded, and the second phase is essentially a placeholder for future projects. He stated that they will refine the design to ensure that the need for a fly -over ramp is eliminated. Motion by Mavor Pro Tern Ridgeway to 1) adopt Resolution No. 2003 -1 approving the submittal of the City's 2002/03 program application to the Orange County Combined Transportation Funding Program; and 2) direct staff to apply for funding under the Orange County Combined Transportation Funding Programs for the project included in the City's application package. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 6. BIG CANYON RESTORATION PROJECT — CONTRACT FOR C -3594 PLANNING AND TECHNICAL STUDIES. BA -033 Big Canyon Volume 55 - Page 555 City of Newport Beach City Council Minutes January 14, 2003 Council Member Nichols expressed concern that this is one of many waterways that flows to the ocean and Back Bay, and noted that this is not even the largest one. He believed that this is setting a precedent by having an extensive survey to handle a waterway that flows to the ocean. He stated that, if the City handled each of the waterways the same, it would create a tremendous problem. Metion by Mayor Pro Tem Ridgeway to 1) approve a Professional Services Agreement with Community Conservancy International (CCI) in an amount not to exceed $110,000 for Planning and Technical Studies ( "Studies ") associated with the Big Canyon Creek Restoration Project, and authorize the Mayor and the City Clerk to execute the Agreement; 2) authorize the City Manager to pursue construction funding for the Big Canyon Creek Restoration Project as the Studies are underway; 3) approve a budget amendment (BA -033) authorizing the expenditure of $110,000 from the Upper Newport Bay Restoration Account for the Studies; and 4) authorize the City Manager to make changes as necessary to the scope of work and budget for the Studies providing that the terms and deliverables remain substantially in accordance with the approved scope of work and budget. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 11. BUDGET AMENDMENT TO APPROPRIATE UNANTICIPATED REVENUE FUNDS IN THE AMOUNT OF $19,400 FROM ACCOUNT 4340 -5144 TO EXPENDITURE ACCOUNT 4340 -8080. Council Member Heffernan stated that his children have been in City aquatics programs and noted that the issue of heating the Corona del Mar pool has been contentious at times. He expressed concern that the City exceeded the revenue estimate by more than 50 0A. He asked if the City will be reducing its fees, noting that the Junior Lifeguard Program costs more than $400. He also asked how this will be reflected in the budget. Recreation and Senior Services Director Knight reported that there was an increase in participation over the last three to six months, particularly in the water polo program and group swim classes. She indicated that the City's fees are consistent within the County. She stated that she is unsure how the fees were developed for the Junior Lifeguard Program, but she can look into it. She indicated that the Junior Lifeguard Program is not reflected in these figures. Volume 55 - Page 556 INDEX Restoration Project (38/40) BA -032 Aquatics Programs (62) City of Newport Beach City Council Minutes January 14, 2003 Council Member Heffernan noted that, when the energy fees increased, the School District had concerns about City /School District joint uses. He asked if the extra revenue will be set aside as a reserve in the event the City is requested to help pay for some of the rehabilitation or does the money go into the General Fund. City Manager Bludau concurred that the City will occasionally have expenditures related to the School District, but believed that the money would go into the General Fund. Regarding the Junior Lifeguard Program, he reported that the City Council decided last year that the program would be self sufficient. Mr. Bludau pointed out that the increase in aquatics program participation created the additional revenue and that the City does not know if this will occur again next year. Motion by Mavor Pro Tern Rideeway to approve BA -032. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 14. DECREASING COSTS IN GENERAL LIABILITY INSURANCE — INFORMATION REPORT. Council Member Heffernan reported that the City recently changed its insurance agent for liability coverage and noted that the City's liability insurance nearly tripled in one year. He indicated that Marsh has looked at this issue and has come back with a proposal that provides substantial savings to the City due to its aggressive bidding and the fact that the number of carriers are limited. He asked what caused Marsh to come back mid -year and present a revised bid to the City. Further, how did Marsh reach such a substantial savings when this was already bid on six months ago. Peter Junker, 23412 Pacific Park Drive, Vice President of the Newport Beach Marsh Office, stated that, because of their position in the marketplace and the amount of business they do with public entities, they believed they could save the City over $200,000 /year. He indicated that Marsh is able to do this because it places more businesses with major insurance carriers than any other broker, has direct access to the markets, and because of its relationships with the market. Mayor Bromberg noted that Marsh was before Council in July 2002 requesting a contract, but it was rejected. He asked how Marsh is able to come back now with a better proposal. Mr. Junker noted that July's discussion dealt with worker's compensation coverage, not general liability coverage. Volume 55 - Page 557 INDEX General Liability Insurance (47) City of Newport Beach City Council Minutes January 14, 2003 INDEX City Manager Bludau asked if the six month time difference affected the market. Mr. Junker did not believe this was the case, noting that they approached the markets in July 2002 after the City's coverage renewed, but nothing was presented until October because the City's previous coverage was written with a 25% minimum premium. He indicated that the market has not softened. City Manager Bludau noted that it costs the City $47,000 in cancellation penalties in order to change the insurance; however, the $214,000 is the savings over 14 months and is after the $47,000 cancellation penalty. Motion by Mayor Pro Tern Ridgeway to receive and file the report. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None K. PUBLIC COMMENTS Jim Hildreth, Newport Beach, stated that he was told by the City Manager after a Council Meeting that, if he gave him the documents he has been requesting, it would show that the City lied. He requested the documents again, noting that the City is supposed to maintain records and files on pier permits, including the Grand Canal. He indicated that Wes Armand has said many times that there are no moorings in the Grand Canal, but stated that there is a location at the far northwest end of the Grand Canal assigned to a P.O. Box. Further, the City Attorney said there is no property that has two pier permitted locations assigned to one property; however, he received a letter from Tony Melum that the location is assigned to 1411 North Bayfront. He stated that, if the City is allowing this location to be assigned to a P.O. Box, then it should allow the Hildreth family access to that location. He indicated that these locations were assigned in 1932 and that Mr. Melum knows of an agreement that was signed by his supervisor. He stated that he has asked the City to look into this, the City asked him to provide what he had, and he asked the City to look into what the City says they have, but the City refuses to do this. He believed that the City has documentation, but the City asked him to prove it. He stated that, if he is not allowed to get into that location and talk to Mr. Armand, what is he left to do than to keep asking the City Council. Mayor Bromberg reported for the new Council Members that Mr. Hildreth has been coming to the City Council requesting documents, but has been told that the City does not have the documents. He stated that he is Mr. Hildreth's Council Member and has offered to meet with him, but he rejected. Further, he looked into the issue himself to determine whether the documents exist, and Volume 55 - Page 558 City of Newport Beach City Council Minutes January 14, 2003 INDEX indicated that he is satisfied that the documents do not exist. He stated that Mr. Hildreth does not want to accept this and will come to every meeting asking for the documents. Mayor Pro Tem Ridgeway reported that Tony Melum and Wes Armand have retired. Regarding the purported conversation that took place after a Council meeting, City Manager Bludau indicated that Mr. Hildreth is not telling the truth. He emphasized to Mr. Hildreth that the City has no records that have not been provided to him. He noted that it is Mr. Hildreth's right to come to Council meetings, but suggested that he sue the City if he does not feel he is getting the records that the City has. Mayor Bromberg noted that one of the Council Members suggested about 1% years ago that, if Mr. Hildreth is not comfortable with this, he acquire an attorney, but he has not done this. Linda Grant, Balboa Arbor Society, thanked Council, City Attorney Burnham, and City Manager Bludau for what they have done in honoring their agreement and for speeding up the process. She stated that she is aware that the way that the tree was removed was painstaking, but noted that the City took care in its removal. She indicated that the tree symbolizes to her that the City cares about all the people. She also thanked the City for paying for the tree's removal. Mayor Bromberg stated that Council policy regarding public comments is that any Council Member can clarify an issue, not debate with people. He indicated that he intends to invoke this policy regularly. Mayor Bromberg agreed that Council owes responsibility to everyone in the City. He noted that, in the Daily Pilot over the weekend, a resident wrote a letter asking why the City paid the Balboa Arbor Society's $57,000 attorney fee. He reported that the City was not allowed to remove the stumps until a hearing occurred in May 2003. He clarified that, if the City did not pay the attorney fee, Phase II of the Balboa Village improvements would not have been allowed to proceed, a $200,000 penalty would have been incurred, and the project would have been delayed about a year. He stated that it was agreed upon to remove the stumps once the fee was paid. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Ad Hoc General Plan Update Committee (GPUC). Mayor Bromberg reported that a subcommittee of four citizens was formed to work on issues, procedures, and policies for the General Plan. He indicated that this may take four or five meetings, they have met once already, and the public provided some input. He stated that this will come back to GPUC and then to Council. Local Coastal Program (LCP) Certification Committee. Mayor Pro Tem Ridgeway reported that they met once during the Christmas Volume 55 - Page 559 City of Newport Beach City Council Minutes January 14, 2003 INDEX holiday and twice since the first of the year. He stated that they have reviewed the entire LCP document, made changes to it, Senior Planner Alford is incorporating the changes, he will circulate it to all Department Directors for responses, it will come back to the committee, there will be a final LCP meeting, and then it will be distributed to the public in draft form. He indicated that they are not on schedule for January 30. • Newport Coast Advisory Committee. Council Member Heffernan stated that the ongoing issue is the amendment of the annexation agreement to provide for City services to the area. He indicated that the item of contention is the maintenance of the slope areas. He stated that the area is collectively owned by the homeowner associations /property owners. He indicated that there is concern about the non - conformance of a majority of the fuel modification zones and the City taking on some form of partial maintenance or reimbursement of those areas; who is party to the agreement; and how the agreement can be amended. He reported that the City Manager, City Attorney, Assistant City Manager, and Fire Chief attended the meeting, but they could not address these issues because some of the committee members were absent. He noted that some of the Newport Coast residents feel that the City dragged its feet in fulfilling its side of the deal; however, now the City is ready but is being stalled. He stated that the City is ready to make payments and do what it has agreed to, but there is unfinished business. He noted that the City has been maintaining the street medians since October 2002, will be installing a signal at Sage Hill School by April 15, 2003, and is providing Police, Fire, rubbish, etc. services as part of the pre- annexation agreement. • Ad Hoc Telecommunications Committee. Council Member Heffernan stated that the agreement with the cable operators has been extended for one year and the needs assessment has been conducted. He reported that a subcommittee has been formed to review cell phone service and an ordinance was adopted that allows the City to be a landlord for cell sites. He noted that cell phone and cable services are highly regulated preempted issues in which leverage is really not on the City's or the consumer's side. • John Wayne Airport (JWA) Settlement Extension Ad Hoc Committee. Council Member Proctor reported that, even though the City has been successful in negotiating the agreement with the County and is prepared to file a stipulation with the court, the committee recognizes that continued diligence on this is incumbent on the City. He indicated that they want to keep their eye on the regional transportation needs of the community to protect the restrictions at the airport. He reported that they participated in the Orange County Regional Airport Authority (OCRAA) meeting last week and noted that they are restructuring their goals and direction to look at regional airport issues. He stated that the City will stay involved in those discussions. Volume 55 - Page 560 City of Newport Beach City Council Minutes January 14, 2003 INDEX July 4th West Newport Safety Planning Committee. Council Member Proctor reported that a subcommittee met which consisted of law enforcement, Mayor Pro Tem Ridgeway, and West Newport citizens to generate a questionnaire that will be sent to about 14,000 residents. He indicated that it will assist in determining how citizens want the City to address July 4'h festivities and problems. He expressed hope that they will receive feedback because they spent a lot of time coming up with options. He stated that they have to get community support and buy -in for whatever approach is taken. Councilmanic Redistricting Committee. Mayor Bromberg stated that he will be calling a meeting of the committee in mid - February. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 15. PLANNING COMMISSION AGENDA FOR JANUARY 9, 2003. Planning (68) Planning Director Temple reported that Item 1 [Landmark Buildings Code Amendment 2002 -007 (PA2002 -218)] was continued to their next meeting. Regarding Item 2 (325 Old Newport Boulevard — Hotties Pizza), Ms. Temple reported that they want to add the sale and service of alcoholic beverages not only for onsite consumption but also with deliveries. She indicated that the Planning Commission expressed concern about underage people convincing an adult to purchase alcohol for them. She stated that they determined that this is not different from an adult in any home allowing their children access to alcoholic beverages and approved the use permit. Regarding Item 3 (707 E. Ocean Front), Ms. Temple reported that they considered amendments to an already approved use permit for the Balboa Inn. She stated that a number of design changes have been made as a result of issues related to compliance with the Uniform Building and Fire Codes. She indicated that this item was continued to February 20, 2003. Council Member Heffernan requested a copy of all the facts regarding Item 2 and to be reminded of its appeal deadline. He believed that this is a hot issue for parents of teenagers. Ms. Temple stated that she will give all of Council a copy of the report. N. PUBLIC HEARING 16. REQUEST TO AMEND THE FASHION ISLAND PLANNED Ord 2003 -1 COMMUNITY (PC -35) DEVELOPMENT PLAN AND DISTRICT PA2002 -192 REGULATIONS PERTAINING TO SIGNAGE. THE Fashion Island Planned APPLICANT PROPOSES MODIFIED SIGNAGE Community (PC -35)/ DEVELOPMENT REGULATIONS THAT WOULD ALLOW Planned Community ADDITIONAL SHOPPING CENTER IDENTIFICATION Development Plan MONUMENT SIGNS, VEHICULAR AND PEDESTRIAN Amendment 2002 -002/ DIRECTIONAL SIGNS AND RESTAURANT MONUMENT Signage Regulations/ Volume 55 - Page 561 City of Newport Beach City Council Minutes January 14, 2003 SIGNS (PA2002 -192) [APPLICANT - HOLLY SANDLER REPRESENTING THE APPLICANT, THE IRVINE COMPANY. Planning Director Temple reported that this is an amendment to the Fashion Island Planned Community (PC) District Regulations, but only for the mall area within the Newport Center ring road and not any part of Newport Center surrounding the Fashion Island mall area. She stated that the signage was in three categories: 1) two additional monument signs on the ring road within the mall, specifically for restaurants within the mall; 2) signage at principal pedestrian entries to the mall on the ring road; and 3) a program for vehicular directional signs within the parking structures and parking lots to assist people in parking close to the shops they intend to visit. She indicated that the Planning Commission reduced the maximum height of the lettering on the monument signs and prohibited the use of illuminated signs in the parking structures or parking lots. She reported that there was a fourth component for additional signs on one of the parking structures, but consideration was withdrawn by the applicant after staff recommended denial of that component. Referencing Hotties Pizza (Item 15), Ms. Temple confirmed for Council Member Proctor that Council can call up an item even if they do not have enough information at this time. City Attorney Burnham recommended that Council Member Proctor call up the item during Motion for Reconsideration. Council Member Nichols believed that this was approved but only for the restaurants and outer ring. He asked how this differs from what was before the Commission and requested clarification as to why this comes before the City Council if it was passed by the Commission. Ms. Temple reported that any amendment to the zoning regulations is considered a legislative act and the Commission acts as an advisory body to the City Council who makes the laws. She stated that, since the zoning ordinance is part of the municipal code and PC Districts are uncodified parts of the municipal code, only the City Council can amend it. She indicated that, if the Commission denied a code change request, the item would die unless a Council Member calls it up for review to sustain or overturn the denial. Council Member Nichols asked if the signage on the inner portion was discussed at the Planning Commission meetings. Ms. Temple indicated that there were no amendments to the existing provisions regarding signs within the mall, but only adds provisions and regulations to the three categories mentioned previously. She noted that the applicant did not request modifications to the existing signage regulations for the external restaurants or inside the mall. Mayor Bromberg opened the public hearing. Tom Billings requested clarification relative to proper procedure and referenced Item 15. Following a point of order request, City Attorney Burnham clarified the process for Mr. Billings at his seat. Volume 55 - Page 562 INDEX IM-1 City of Newport Beach City Council Minutes January 14, 2003 10 Tim Paone, Manatt/Phelps/Phil ips LLP, 650 Town Center Drive, Costa Mesa, stated that he is representing The Irvine Company. He indicated that they are in concurrence with the staff report and thanked staff and the Planning Commission for the work they have put in. He noted that they provided drawings which are included in the staff report He stated that Amy Owen, graphic designer, is present to answer any questions. In response to Mayor Pro Tem Ridgeway's question, Mr. Paone confirmed that they are in agreement with the terms and conditions as modified by the Planning Commission. Council Member Heffernan stated that he knows that the owner of The Irvine Company is sensitive about signage issues. He asked if thought was given to the existing office signage at the outside perimeter of Newport Center. Mr. Paone indicated that those signs are regulated by a completely separate PC text. Council Member Heffernan stated that the recommended signs look tasteful and applauded the interior mall signage. Hearing no further testimony, Mayor Bromberg closed the public hearing. Motion by Mavor Pro Tem Rid¢eway to introduce Ordinance No. 2003 -1 approving Planned Community Development Plan Amendment No. 2002 -002 based on the recommendation and revisions made by the Planning Commission, and pass to second reading on January 28, 2003. Mayor Pro Tem Ridgeway stated that he asked The Irvine Company for this when he was on the Planning Commission because he felt signage was needed there. He agreed that they did this tastefully and believed that it will help businesses, patrons, and pedestrians, noting that The Irvine Company will be adding pedestrian walkways into Fashion Island. 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. RENTAL AGREEMENT WITH TENANTS OF MARINAPARK. Assistant City Manager Kiff reported that this is for a proposed one- year lease with the residents at Marinapark. He indicated that, in May 2002, Council approved a one -year lease agreement with two one -year options at the City's discretion. He stated that, since that Volume 55 - Page 563 IIJ17�1:� C -1784 Marinapark Tenant Rental Agreements (38) City of Newport Beach City Council Minutes January 14, 2003 ufiTO7 - time, the tenants have retained a new attorney who requested changes to the lease. He reported that they have come to agreement with the attorney relative to the wording of the lease, but the term is still the City's preference. He indicated that the staff report includes a proposed one -year lease with no options, but staff will come back to Council in a year if it chose to have them enter into a new lease. He added that the City also had special counsel work on this. He reported that the agreement freezes the rental rate that was proposed in September 2002. He indicated that the rent will continue for this lease, but Council can raise the rent or go to another market adjustment at the end of the lease. Council Member Heffernan requested clarification for the basis of the short term lease relative to Sutherland Talla's exclusive right to negotiate on the parcel. Mr. Kiff indicated that the two are related only because direction from Council in May 2002 was to provide Council with the maximum discretion to enter into park closure proceedings if Council wished to do this. He stated that they believe they are obligated to offer a 12 -month lease. City Attorney Burnham indicated that he does not believe that the Sutherland Talla agreement obligates Council to limit the term of the rental agreement to one -year. Council Member Heffernan believed that the City could enter into a 20 -year lease and still be in compliance with the Sutherland Talla agreement. Mr. Burnham stated that he agrees, but it was dependent on the terms and conditions. Council Member Heffernan asked how the lease deals with relocation if it is terminated in a year. Assistant City Attorney Clauson reported that the issue of relocation is one of the central issues that came up in the original lease from May 2002. She noted that the previous 15 -year lease that was entered into in 1985 and extended twice included stipulations that the tenants would waive their right to relocation benefits. She stated that it is now being recommended that the provisions on waiver relocation not be included in this lease. She indicated that it does recognize that the tenants received reduced rents over the years and that this was done initially as part of the original lease as consideration for the waiver for relocation benefits. She stated that, if Council decides in the future to close the park, Council has reserved its right to assert a setoff against relocation benefits for the reduced rents. She confirmed that the removal of the waiver was under the advice of the City's counsel. Further, there are provisions in the Mobilehome Residency Law that discusses public policy and the inability to waive rights under this law. In response to Council Member Nichols' question, Ms. Clauson stated that the original lease allowed for noticing to sever the agreement prior to the end of the lease. However, this lease complies with the Mobilehome Residency Law, offers a one -year lease, and gives them the opportunity to elect to go to a month -to -month lease. Regarding closure, the City would need to follow the Mobilehome Residency Law. Volume 55 - Page 564 City of Newport Beach City Council Minutes January 14, 2003 u3 Council Member Proctor asked if the City is obligated to initiate a closure due to the tidelands issue. Ms. Clauson stated that there is a pending issue relative to whether the property is tidelands and that the lease recognizes this in its recitals. She indicated that the State Lands Commission has asserted that part of the property is tidelands in which private residential use is not permitted. Council Member Proctor asked if the City is obligated at some point to initiate closure. Ms. Clauson stated that the City has not received a determination or letter from the State Lands Commission requiring the City to close Marinapark, adding that she is unsure when this will occur. Mr. Burnham explained that the Sutherland Talla agreement is a two part agreement in which the first part establishes a process in which Council would determine if it wanted to pursue the hotel project and the second part obligates the City to enter into good faith negotiations with Sutherland Talla once all required permits are issued. Council Member Proctor believed that further direction needs to be given to look at the option of closure no matter what is done to the land, rather then come back in a year. Mr. Burnham believed that it is a good idea to put this issue on a study session agenda to look at the different elements of this site and to explain what has to occur before there would be a closure and change in land use. He reported that the State Lands Commission, at a staff level, believes that a large portion of the site is tidelands; however, the City has been waiting for three or four years for a written statement. He noted that the City is no closer to getting this, adding that it has been their practice not to require the immediate conversion to a conforming use. Mayor Bromberg stated that this may be a good topic for the Council retreat. Council Member Heffernan asked if there is a deadline for Sutherland Talla to trigger the condition that obligates the City. Mr. Burnham stated that the agreement extends to the end of 2005. Assistant City Manager Wood indicated that Mr. Sutherland had specific deadlines, including submitting a complete application/ planning documents for the project. She reported that it was due yesterday and was delivered to her office yesterday. She indicated that the City is obligated to begin the environmental review process. She reported that they have 30 days to get the notice of preparation done on the Environmental Impact Report (EIR) and that usually, when there is an EIR, Council action would not occur for about a year. Mr. Burnham confirmed that Mr. Sutherland is in compliance with the agreement, the agreement is still in effect, and the City is still obligated when/if he concludes with the conditions to negotiate in good faith. Council Member Nichols stated that the Balboa Bay Club and several other properties have asked the State and been allowed to have residential properties, even though they are tidelands. He believed that this is an alternative to pursue. Council Member Webb indicated that he is also interested in closure procedures. Regarding the environmental document, he asked if there will be any alternatives related to a "no project or other uses Volume 55 - Page 565 City of Newport Beach City Council Minutes January 14, 2003 such as a park or marina facility ". Mr. Burnham stated that the City is not in a position to make a determination regarding the nature of the environmental document and that it is premature to decide what the document would look like and its legal requirements for alternatives until the determination is made as to whether the project could have a significant impact. Tom Billings stated that he is happy to hear that the lease may be extended, but would like to see it extended longer. He indicated that it would be nice to have more time to consider a realistic use for the area and asked when the hearing would be. Mayor Bromberg stated that he does not know yet. Mayor Bromberg noted that the Daily Pilot printed a letter that asked what the City Council is doing and why it is not giving a lease to the Marinapark residents. He explained that issues come to Council and then Council decides the outcome after the public hearing. He pointed out that the item is not to take the property away, but to determine whether the lease should be extended. Jim Hildreth, Newport Beach, believed that Mr. Sutherland should be well advised to back out of such an agreement because of the tidelands issue and the problems he will acquire from this. He stated that, for Mr. Sutherland to go through the proper procedure of obtaining agreements and documents, and then all of a sudden have to deal with the tidelands issue, he would be well advised to walk away from this. Motion by Mayor Pro Tern Ridgeway to approve a one -year (January 14, 2003 through January 13, 2004) Rental Agreement to lease spaces for mobilehomes on City property known as Marinapark between 15th and 18th Street on Balboa Peninsula). The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 18. MARINERS JOINT USE LIBRARY, APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH THIRTIETH STREET ARCHITECTS. City Clerk Harkless pointed out that Council received a modified staff report tonight that includes changes in the agreement. City Manager Bludau noted that staff made a recommendation to form a Mariners Joint Use Library Steering Committee, but did not include a resolution to authorize the committee. Mayor Bromberg stated that, if the motion passes, the committee selection can be Volume 55 - Page 566 INDEX C- 3496(A) BA -037 Mariners Joint Use Library (38/40) City of Newport Beach City Council Minutes January 14, 2003 agendized for the January 28 meeting. Motion by Mavor Pro Tern Ridgeway to 1) approve a Professional Services Agreement with Thirtieth Street Architects, Inc. of Newport Beach at a contract price of $472,867 and authorized the Mayor and City Clerk to execute the agreement, as amended; 2) approve a budget amendment (BA -037) appropriating $472,867 to Contributions Account No. 7251- C5100661; and 3) authorize the formation of the Mariners Joint Use Library Steering Committee. Council Member Webb complimented staff for bringing together the architectural professional services agreement so quickly because he believes it is important to get this project moving and started. He added that he supports the formation of the steering committee to get input from the community to resolve some issues. Mayor Bromberg asked that Council Member Webb meet with him to see what he wants in the committee since he is the Council Member for that area. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 19. APPOINTMENTS BY THE MAYOR TO THE COUNCIL /CITIZENS AD HOC COMMITTEES, THE JOINT GOVERNMENTAL COMMITTEES, AND THE CITIZENS ADVISORY COMMITTEES. Mayor Bromberg noted that, pursuant to Council policy, the Mayor is a member of all standing and ad hoc committees. However, he explained that, for the committees he has included his name, those are the committees that he expects to actively participate in. Motion by Mavor Bromberg to confirm the following Mayor appointments: COUNCIL/CITIZENS AD HOC COMMITTEES A. Aviation Committee 1. Mayor Bromberg (Chair) 2. Council Member Webb (Vice Chair) 3. City Manager or designee 4. City Attorney or designee 5. Current president or designee of the Airport Working Group 6. Resident of Newport Coast/Newport Ridge Judith Whitmore Volume 55 - Page 567 INDEX Mayor Committee Appointments (24) City of Newport Beach City Council Minutes January 14, 2003 INDEX B. Ad Hoc Committee to Promote the Revitalization of the Balboa Peninsula (PROP) 1. Mayor Pro Tem Ridgeway (Chair) 2. Mayor Bromberg 3. Council Member Proctor C. City-School Ad Hoc Committee 1. Mayor Pro Tem Ridgeway (Chair) 2. Council Member Webb 3. Council Member Heffernan 4. City Manager D. Economic Development Committee OEDC) 1. Mayor Bromberg 2. Mayor Pro Tem Ridgeway 3. Council Member Adams 4. Planning Commissioner Selich 5. EQAC Chairman 6. Chairman Selich E. Oil and Gas Field Operations Committee 1. Mayor Pro Tem Ridgeway 2. Council Member Nichols 3. Utilities Department Director F. Ad Hoc City Council Airport Issues Committee - sunsetted G. Councilmanic Redistricting Committee 1. Mayor Bromberg (Chair) 2. Council Member Webb 3. Council Member Heffernan H. Affordable Housing Task Force 1. Mayor Pro Tem Ridgeway (Chair) 2. Council Member Webb 3. Mayor Bromberg I. Ad Hoc General Plan Update Committee (GPUC) 1. Council Member Adams (Chair) 2. Mayor Bromberg 3. Council Member Heffernan 4. Planning Commission designee 5. Planning Commission designee 6. Planning Commission designee Volume 55 - Page 568 City of Newport Beach City Council Minutes January 14, 2003 INDEX 7. Environmental Quality Affairs Citizens Advisory Committee designee 8. Economic Development Committee designee 9. Aviation Committee designee 10. Harbor Commission designee 11. Greenlight designee J. Web Site Review Ad Hoc Committee 1. Council Member Adams (Chair) 2. Mayor Pro Tem Ridgeway 3. Council Member Nichols K. John Wavne Airport (JWA) Settlement Extension Ad Hoc Committee - sunsetted L. Ad Hoc Telecommunications Committee 1. Council Member Heffernan (Chair) 2. Council Member Nichols 3. Community Member Donald Boortz 4. Community Member Leslie Daigle M. Local Coastal Program (LCP) Certification Committee 1. Mayor Pro Tem Ridgeway (Chair) 2. Mayor Bromberg (Vice Chair) 3. Council Member Webb 4. Planning Commissioner McDaniel 5. Planning Commissioner Selich 6. Planning Commissioner Toerge N. July 4th West Newport Safetv Planning Committee 1. Mayor Pro Tem Ridgeway 2. Council Member Proctor 3. Community Member Craig Batley 4. Community Member Mary Bryant II. COUNCIL COMMITTEE A. Finance Committee 1. Council Member Heffernan (Chair) 2. Council Member Nichols 3. Council Member Webb III. REPRESENTATIVES TO JOINT GOVERNMENTAL COMMITTEES Volume 55 - Page 569 City of Newport Beach City Council Minutes January 14, 2003 INDEX A. Growth Management Area H Representative Council Member Nichols B. Hazardous Waste Material - Joint Powers Authority Council Member Nichols C. Inter -City Liaison Committee 1. Mayor Bromberg 2. Council Member Heffernan 3. City Manager D. Joint Committee for the Evaluation and Implementation of the Upper Newp-Qrt Bay Cooperative Agreement 1. Council Member Adams 2. Council Member Webb (Alt.) E. League of California Cities /Orange Counts Division 1. Council Member Adams 2. Mayor Bromberg (Alt.) F. Orange County Coastal Coalition 1. Mayor Pro Tem Ridgeway G. Orange County Council of Governments (OCCOG) 1. Mayor Pro Tem Ridgeway* *SCAG District 14 representative and OCCOG Board Member 2. Mayor Bromberg (Alt.) H. Orange County Homeless Coalition (Affordable Housing) 1. Council Member Proctor 2. Planning Staff Member Daniel Trimble I. Orange County Housing Commission - Advisory Committee 1. Planning Staff Member Daniel Trimble 2. Planning Director Patricia Temple (Alt.) Volume 55 - Page 570 City of Newport Beach City Council Minutes January 14, 2003 J. (OCRAA) INDEX 1. Council Member Proctor 2. Council Member Webb (Alt.) K. Orange County Sanitation District (OCSD) 1. Mayor Pro Tem Ridgeway 2. Council Member Webb (Alt.) L. Santa Ana River Crossing (SARX)_Study Policy Advisory Committee 1. Council Member Proctor 2. Council Member Webb (Alt.) M. Santa Ana River Flood Protection Aeencs 1. Council Member Proctor 2. Council Member Nichols N. San Joaquin Hills Transportation Corridor Joint Powers Agency Board of Directors 1. Council Member Adams 2. Council Member Webb (Alt.) O. Southern California Association of Governments (SCAG) 1. Mayor Pro Tem Ridgeway* *Appointed by Orange County Division of the League of California Cities P. SR73LSR55/1 -405 Freeways Confluence Policy Committee 1. Council Member Adams IV. CITIZENS ADVISORY COMMITTEES A. Environmental Quality Affairs 1. Mayor Bromberg 2. Council Member Nichols 3. Chairman or designee of EDC 4. Chairman Hawkins [citizen (at large)] B. Coastal/Bay Water Quality 1. Mayor Pro Tem Ridgeway (Chair) Volume 55 - Page 571 City of Newport Beach City Council Minutes January 14, 2003 INDEX 2. Mayor Bromberg (Vice Chair) C. Youth Council 1. Mayor Pro Tem Ridgeway (Liaison) 2. Recreation & Senior Services Staff Member D. General Plan Advisory Committee (GPAC) 1. Co -Chair Nancy Gardner 2. Co -Chair Phillip Lugar E. Newport Coast Advisory Committee 1. Council Member Heffernan 2. Council Member (possible appointment after redistricting) 3. Council Member (possible appointment after redistricting) 4. Community Member Jack Butefish 5. Community Member Patrick Fuscoe 6. Community Member Donald Phelps (Alt.) City Clerk Harkless confirmed that she will be updating the rosters. Regarding Councilmanic appointments, Council Member Adams requested that staff bring back an item that identifies the open slots and then make the appointments at the following meeting. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None P. MOTION FOR RECONSIDERATION Motion by Council Member Proctor to reconsider Item No. 15 (Planning Commission Agenda for January 9, 2003). The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Council Member Proctor called up Planning Commission Item No. 2 regarding 325 Old Newport Boulevard (Hotties Pizza) — Use Permit No. 3622 (PA2002 -172). Volume 55 - Page 572 City of Newport Beach City Council Minutes January 14, 2003 Q. ADJOURNMENT - at 8:55 p.m. in memory of former Mayor James Stoddard. The agenda for the Regular Meeting was posted on January 8, 2003, 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 573 INDEX