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HomeMy WebLinkAbout01 - Minutes 02-25-2003City Council Meeting March 11, 2003 Item No. 1 CITY OF NEWPORT BEACH City Council Minutes ®���T Study Session t February 25, 2003 - 4:00 p.m. INDEX ROLL CALL Present: Heffernan, Proctor, Ridgeway, Adams (arrived at 4:07 p.m.), Webb, Nichols (arrived at 4:17 p.m.), Mayor Bromberg Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In response to Mayor Pro Tem Ridgeway's question regarding Item 4 (Non- exclusive Solid Waste Franchise Agreement), City Attorney Burnham agreed that the issue in the staff report should read, "Should the City agree to the assignment..." Mayor Pro Tem Ridgeway indicated that this could be amended during the regular meeting. 2. APPEALS AND CALLS FOR REVIEW. City Manager Bludau indicated that Council Member Heffernan requested this item about six weeks ago. Council Member Heffernan clarified that his request was to find out who determines what queue /entity a person goes before for review of their project (Modifications Committee, Planning Commission, or City Council), what are the rules for each, and what are the appeal rights. Planning Director Temple stated that the queue is established by the municipal code which specifies what types of projects are considered routine, identifies the types of requests that require review, and determines whether those are reviewed by staff, the Planning Director, Modifications Committee, Planning Commission, or Council. She indicated that staff advises an applicant on the type of application required and what body reviews the request. She stated that she could generate a spreadsheet for Council at a later time that would list the requests, types of applications, and the process. Council Member Heffernan believed that this would be helpful because there is a feeling that this is a much more discretionary process than what is being described. Ms. Temple referenced development standards as an example and reported that the municipal code places it in a level of review that is considered discretionary, but the code usually sets specific findings that need to be made in order to support a decision. She stated that staff would need to review the item to determine whether the facts support a review by one of the queues. She emphasized that the decisions are not set in concrete so this is why those determinations or actions can be appealed or called up to a higher level for final determination. Council Member Heffernan stated that some of the findings he sees are not detrimental, are often granted, and appeals are rare. However, if the Planning Commission was given all the modifications, it would water down what the Commission does and they would not get to the larger issues. He believed there is a good reason to have them handled this way. Ms. Temple stated that, if there is a desire by Council to keep certain types of "smaller requests" at a lower level of review, like staff, Volume 55 - Page 640 Appeals and Calls for Review (68) City of Newport Beach Study Session Minutes February 25, 2003 INDEX but there is still discomfort about the standards those are evaluated against, they could look at the standards and tighten them up. Ms. Temple noted that the staff report did not mention that, several years ago, staff began changing the code to address permit streamlining and reduced the appeal period from 21 to 14 days. She indicated that this would normally not be problematic, except for the four times a year when there are three weeks between Planning and Council meetings. She reported that a change to the code was made after this was realized to allow any Commissioner or Council Member to call up any staff decision or for Council to call up a Commission decision. She reminded Council that they have this right and there is no requirement that this be done at a meeting, adding that a Council Member can send an email, fax, or call. Mayor Pro Tem Ridgeway stated that he was involved in some of the Commission decisions regarding appeals, and they saw in real life practice why timing was important. He added that Newport Beach is a unique City and he would not support more stringent standards. He noted that most of the processes for modifications, appeals, variances, and conditional use permits are based on the health, safety, and welfare clauses in the Constitution which allows for a balance. He believed that, if the standards are too stringent, then there will be automatic appeals to a higher level and Council would ultimately get every item. He stated that the City has run on exception and complaints for years and has functioned very well. He noted that the Commission is careful not to create new precedence, and that most of the items that Council sees exist throughout the City. He believed that the system is not broken and worries when staff suggests creating higher standards, reiterating that Council will end up reviewing every minor item in the City. Ms. Temple noted that the City has a lot of nonconforming buildings that, when built, were conforming. She agreed that, once a minor variation like a setback encroachment is approved, the next person automatically assumes they will also be approved. She reported that they have been receiving a lot of requests lately for fairly elaborate entry gate arrangements for single- family homes. She stated that the deciding body looks to see how the neighbors react to it and decides what is reasonable to approve. She believed that, once a number of requests come in, it becomes time to look at code changes. Ms. Temple stated that staff usually sees the trends and would probably be the one to take the question to the Commission or Council for direction. Using residential zoning districts as an example, Assistant City Manager Wood reported that, in most city zoning ordinances, the setbacks are established and would apply to the entire R -1 or R -2 district. However, the City has districting maps with established setbacks for individual lots that may not be consistent block to block. She stated that this is often what people are asking for in order to get some relief from the regulations. City Manager Bludau asked if the queuing is black and white, or if there is a lot of discretion. Ms. Temple stated that, in most cases, it is black and white, and staff does not really have discretion over the type of application that might be required and has no discretion over how it is processed. She believed that the greatest amount of staffs challenges are with nonconforming buildings, modifications to those buildings, and what type of permit might be used to Volume 55 - Page 641 City of Newport Beach Study Session Minutes February 25, 2003 authorize the maintenance of the nonconforming feature. She stated that the City's code for nonconforming structures allows quite a bit of reconstruction of nonconformity by right, but with some discretionary permits. She believed that this was done after it was recognized that the City has an enormous number of nonconforming buildings. She believed that determining whether the City wants to force conformity is a policy call that should only be made by Council. In response to Council Member Nichols' questions, Ms. Temple reported that the condominium conversion provisions are in the zoning code and subdivision code, and sets specific standards that need to be met in order to qualify to be a condominium. Regarding two unit condominiums, she stated that the ability to do the conversion is a recent invention because, prior to that, it was almost impossible to meet the standards to convert a duplex to a condominium. She reported that the Council at the time established the parking requirement and determined that the appropriate body to review the permits was the Modifications Committee. She added that the modifications permit also provides the City with an opportunity to ensure compliance and to ensure all procedural steps are met. Council Member Nichols asked how this could be repealed. Ms. Temple stated that Council can call up the codes and review them, and indicated that she could provide the code to Council Member Nichols. 3. PROPOSED REFUSE COLLECTION SCHEDULE CHANGES. Utilizing a PowerPoint presentation, General Services Director Niederhaus reported that the proposed refuse collection change would affect about 4% of the residents (1,220 residential units) and improve efficiency. He introduced Refuse Superintendent Russo and Management Assistant Hammond, and noted that there are 31 employees in the refuse division. He reported that they average about 40,000 to 42,000 tons of trash a year from about 27,500 residents. He noted that they collect trash Monday through Friday, except during June and September when they collect six days a week. He stated that the City mostly uses the landfill in the Bonita Canyon area and collects trash from the west to east sides of town. He reported that they are proposing to move 10 tons of trash from Friday to Thursday, Thursday to Wednesday, etc. so they can continue to have a lighter Monday and decrease the tonnage on Friday's route. He stated that doing this would eliminate overtime and accumulated paid leave on Fridays and provide more uniform tonnage collection throughout the week. Further, this may decrease workers' injuries due to a more balanced schedule and will reduce the City's liability with regard to the 19 collection trucks on the City streets. Mr. Niederhaus displayed graphs of the current refuse collection statistics, a graph of the proposed refuse collection statistics, and reviewed the district changes, noting that District 3 is the only District that will not be affected. He explained that the areas were selected because it would be easy to notice and contain the area, and easy to keep the collection personnel informed. Mr. Niederhaus reported that they will publish press releases, have cable announcements, send out letters to the community associations and rental agencies, distribute door hangers, and provide information on the web to inform the public about the changes. He stated that they anticipate a smooth implementation because they plan to do a good public relations process. He indicated that the change does not need Council approval, but authorization from the City Manager, and would take place the week of March 17. He added that there will be a 30 day grace period and, if a resident forgets, they can call Volume 55 - Page 642 015755N Refuse Collection Schedule Change (44) City of Newport Beach Study Session Minutes February 25, 2003 4. Services to let them know they forgot to put their trash out. UPDATE ON NEWPORT BEACH'S WATER QUALITY /STORMWATER OBLIGATIONS. Assistant City Manager Kiff utilized a PowerPoint presentation to review the City's new stormwater obligations and noted that this is City Manager Priority #5 (to develop an organizational response to the City's new National Pollutant Discharge Elimination System ( NPDES) permit obligations). He reported that the Federal Clean Water Act (CWA) requires States to protect recreational waters from pollutants and Section 303(d) states that water quality limited bodies must have clean -up plans (Total Maximum Daily Loads). He stated that, in California, the State Water Quality Control Board and the nine regional boards implement NPDES by issuing cities permits to operate the storm drain system. He indicated that the current Municipal Separate Storm Sewer Systems (MS4) permit was adopted by the Santa Ana Regional Board in January 2002. Mayor Pro Tem Ridgeway pointed out that Council reviewed the permit language prior to it being adopted by the Regional Board and was the only city out of 34 who sent a letter of support. Mr. Kiff emphasized that the permit does not just apply to the City, but to all the inland cities. Mr. Kiff reported that the permit says that water in the gutter during dry weather is probably illegal. He stated that the concern is with what the water carries into the storm drains that are drained into the bay and ocean, i.e. fertilizers, pesticides, car and truck chemicals, dog manure, bird droppings, rabbit droppings, sediment, trash and yard debris, and soaps and cleaning supplies. He emphasized that "safe" soaps kill some animals and take the scales off of fish. He reported that whatever is in the gutter goes into the storm drain through catch basin inlets which go straight into the ocean with no treatment process. He noted that the City tries to filter it in some locations and, in very few places during dry weather, the City intercepts it and diverts it to the sewer line so it undergoes treatment. He displayed storm drain filters and catch basin screens that were purchased with Clean Beaches Initiative money. He also showed an aerial of the existing and future diversions. Mr. Kiff explained that gutters are not dry during "dry" weather because residents, businesses, homeowner associations, and sometimes the City over water landscaping, and storefront windows, awnings, patios, driveways, and sidewalks are hosed down. He pointed out that the solutions are easy and include designing projects better so runoff water stays on site, designing parking lots with swales, installing weather -based sprinkler controls, and planting xeriscape or drought tolerant landscaping. He stated that Irvine installed this type of sprinkler control in a pilot area and saw a 60% to 70% reduction of runoff. Mayor Pro Tem Ridgeway noted that this technology will probably be used by all homes in the next five years and reported that the hookup to the satellite costs about $4 a month. Mr. Kiff noted that what is permitted in Anaheim Hills may not be permitted in Newport Beach. He reported that the permit states that "certain discharges... need not be prohibited..." (i.e. rainwater, potable water line flushing, landscape irrigation, dechlorinated swimming pool discharges, non - commercial vehicle washing, and emergency fire fighting flows). However, by November 15, 20032 the City must prohibit discharges of runoff from the washing of toxic materials from paved areas, pet waste, yard waste, litter, debris, sediment, runoff from storage areas, and water from the cleaning of municipal, industrial, and Volume 55 - Page 643 IN "11 Water Quality/ Stormwater Obligations (51) City of Newport Beach Study Session Minutes February 25, 2003 INDEX commercial sites, including parking lots, streets, sidewalks, driveways, patios, plazas, work yards, and outdoor eating or drinking areas. Mr. Kiff noted that a person who was over watering the lawn and washing their car at home might pick up waste and carry it into the gutter. He believed that this may carry enough contaminants, since the City is so close to the bay and ocean, to require prohibiting these types of uses. Mayor Pro Tem Ridgeway noted that the City complained about this point because there were complaints from a number of people who owned businesses on major streets. He stated that people will need to either sweep or use sandbags to dam the water and suck it up with a vacuum. He noted that the City is currently using best management practices (BMPs) when it conducts street repairs. Mr. Kiff added that there are companies that specialize in these types of cleanings. City Manager Bludau asked why washing a car in Anaheim Hills does not put just as much pollutants into the waste stream as washing a car in Newport Beach since the result will eventually be the same. Mr. Kiff stated that the next part of the permit states that this type of activity need not be prohibited if a city can determine that the water is treated or, by the time it reaches a water body, the bacteria has died due to W light or natural processes which filter the water so it is cleaner. He stated that Newport Beach does not have the opportunity to have that type of treatment system due to the proximity of the City to the bay. He indicated that this is an interesting interpretation and that he is unsure where the Regional Board and others will go with this. However, Mr. Kiff believed that those types of activities could be prohibited since a portion of the permit states that discharges from the storm drain system cannot be legally discharged to the extent that it causes the water quality to exceed the bacteria standard. He noted that the standard is so low that very little contaminant can trigger a beach closure. Mr. Kiff referenced Attachment A of the staff report that highlights the types of field inspections that are required by the permit and noted that some of the inspections are fairly frequent. He stated that there is also an education and training component for City staff, all the people who contract with the City, and the builders and architects that come to the Planning desk to assist with designs they can incorporate into their building plans. He reported that there is a plan check component that requires the City to check each plan for water quality, including most residential, most commercial, and all City public works projects. He stated that there is also a water quality monitoring component, in addition to what the County does today. He indicated that the City needs to participate in a regional program to test for heavy metals, bacteria, viruses, etc. Mr. Kiff reported that there is also an administrative component for reporting. Mayor Pro Tem Ridgeway asked what happens with CalTrans and State public works projects. Mr. Kiff reported that they are under a similar permit, but believed that the City's permit is tougher. He stated that it is conceivable that CalTrans and the State would have to capture and treat the water as they build more highways, particularly in areas like Newport Bay where there is a problem with toxic pollutants caused by cars. Mr. Kiff reported that the permit requires that certain new developments include a Water Quality Management Plan that includes retention facilities for onsite treatment and specifically designed BMPs. He indicated that this would require the City to inspect/clean storm drains more extensively; continue street Volume 55 - Page 644 City of Newport Beach Study Session Minutes February 25, 2003 INDEX sweeping; use more xeriscape materials; and inventory, inspect, and improve fixed and field facilities. He highlighted the proposed organizational response, noting that it is similar to what other cities and the County are doing. He indicated that he and the City Manager discussed setting up a division which would be run by Code Enforcement Supervisor Sinasek. He stated that it would include a code services division and water quality division which would have someone to handle the NPDES regulations, someone to work on education and engineering, two people to conduct the field inspections, and someone to handle the restaurants with regard to their capacity for grease interceptors or BMPs. Regarding the cost, he noted that this could be done with three staff members and a contracted grease interceptor inspector. He reported that there would be an education component and a one time cost to upgrade deficient City facilities. Mr. Kiff stated that the City Manager suggested transferring unfilled positions to fill these positions so there would not be a net increase in staff. Further, the food facility inspector could be funded through an inspection fee as part of the business license associated with food preparation facilities, the water quality plan check could be a plan check fee, and a portion of the existing water rate could be used to fund the education and xeriscape planting program. He indicated that Council should consider contracting out for some of these services because it might save money or the City could use grant funds for one time capital projects (screens, filters, diversions). He noted that some cities may enact a voter - approved stormwater fee to pay for more street sweeping and catch basin cleaning. He reported that the operation itself is not eligible for grant funds. Mr. Kiff reported that people can go to www.cleanwaternewport.com; www.swrcb.ca.gov /rb8; www.stormwater.com; and www.ocwatersheds.com for more information. Mayor Pro Tem Ridgeway stated that the City's attitude when it sent the letter, and probably still today, is that it must lead by example. He noted that it may look expensive to the City, but some of the inland cities are looking at costs in the millions in order to comply with the NPDES permit. He believed that not doing all these things leaves room for the other cities not to enforce their NPDES permits. Mayor Bromberg stated that Newport Beach is the leading coastal city in California when it comes to environmentally sensitive issues about water quality. He believed that the City has to do these things, otherwise it cannot approach the inland cities and tell them what they need to do. He added that this is a social responsibility, as well as a legal responsibility. Council Member Adams asked if the City has increased liability exposure with regard to the flood width on the streets because of the change in the inlet efficiency. Mr. Kiff indicated that the City has been taking the catch basin screens out from October to :March. Mayor Pro Tem Ridgeway noted that the City has evidence that the screens and filters are mitigating the problem in West Newport. Mayor Bromberg added that the screens are working well on :Marine Avenue. He expressed his hope that other areas on Balboa Island will also get them. Mr. Kiff emphasized that the goal is to stop debris before it gets into the storm drains and to have the debris picked up by the street sweeper. Council Member Webb stated that the City should also encourage its citizens to conserve water because it is in a semi - drought and the groundwater basin has been over utilized and soon will need to rely more on MWD water which is Volume 55 - Page 645 City of Newport Beach Study Session Minutes February 25, 2003 INDEX having problems because the Colorado River allocations have been cut back. He indicated that watering landscape is probably the largest use of water in the household and suggested looking at water conservation more intently since it will, in turn, reduce water runoff. Council Member Nichols asked if this is suggesting diverting storm sewers to the sewage sewers during the summer. Mr. Kiff stated that the City has a permanent diversion in place at Newport Dunes between March and October and the City intends to divert five other areas using State grant funds. He indicated that this will help the City ensure that Newport Bay stays clean in the event of a spill. He stated that the ideal situation would be to use a gravity system from the storm drain into a sewer line. He indicated that the City would need permission from the Orange County Sanitation District and will possibly have to pay a per gallon discharge fee. He noted that it is currently free to a certain amount and the City has never come close to the threshold. Mayor Pro Tem Ridgeway pointed out that more dry weather diversions are being done throughout the County, causing the Sanitation District to quickly approach its maximum capacity. He stated that it costs them money to process the water and agreed that there will probably eventually be a surcharge or cost. In response to Council Member Nichols' question, Mr. Kiff indicated that it has not been possible to distinguish between animal and human bacteria. He stated that there has been a lot of research to determine the source; however, the published reports have been disappointing since they cannot do anything better than if they randomly picked a source. He reported that agencies, like the Sanitation District, send labs known sources so they could determine the source using their testing methods, but they are not close. Council Member Nichols noted that some of the beach closures are being caused by bacteria that people will not get sick from. Dennis Baker, Coastal/Bay Water Quality Committee, reported that California has lost 90% to 95% of its wetlands due to construction, but there is a move at the State, County, and city level to create constructed wetlands. He believed that doing all these things will not make the water pure, but constructed wetlands and regular wetlands do natural filtering. He stated that, if the City constructs wetlands, it would gradually be putting back the natural elements that can help. He suggested that this be part of the idea to clean the water and meet the permit requirements. He stated that the public unfortunately misconstrues the idea of what a constructed wetland is and believed that the City needs to make the public aware that this is a natural area that will serve many purposes. Laura Dietz stated that this is actually about changing the behavior of the citizens. She added that educating the youth through the Youth Council might be a way to build a grassroots campaign at basically no cost. Nancy Gardner, Coastal/Bay Water Quality Committee, stated that the Surfrider Foundation has a proposal for a natural wetlands area along the Santa Ana River that will hopefully come before Council during a study session. She noted that diversion only helps in the short term since it only moves the problem someplace else, and believed that a wetlands and changes in behavior are more practical. She stated that this is an expensive program, but suggested approaching non - profit organizations to assist with the outreach programs to Volume 55 - Page 646 City of Newport Beach Study Session Minutes February 25, 2003 take some of the burden off of the City. She reported that the Committee set its priorities for the year and one of them is to reduce runoff in the City. She stated that they will hopefully have a program running by the end of the year aimed at the residents and homeowners associations who are a large part of the problem. Mayor Pro Tem Ridgeway suggested that Mr. Kiff bring back the Committee's four main goals for next year for informational purposes. He reported that the Committee and Council created an education program for fifth graders that is underwritten by a number of corporations. He indicated that the Youth Council resists every time he pushes water quality to them, but he will keep pushing. City Manager Bludau referenced Attachment A and noted that there are mostly "noes" in the column that asks if the subjectlaction is done. He stated that it is going to be a challenge for the City to get all "yeses" and have minimum financial impact on the City. He believed that it is important that the City centralize and assign responsibility and authority, and ensure that the organization reflects the City's focused effort. Mayor Bromberg agreed, emphasizing that Newport Beach is the first line of defense for the bay. Council Member Nichols stated that a constructed wetland actually cycles the water coming down a wetland and, if properly used, can be good. He added that a wetland is just a water spot and only serves to help that small amount of water evaporate without really cleaning it. He indicated that the Irvine Regional Water District (IRWD) is proposing a constructed wetland at the old ponds. Council Member Webb indicated that the Crystal Cove development has several constructed wetlands which is an innovative way of passing water through a wetlands area. Regarding the organizational chart, Council :Member Webb asked if personnel requests will be brought back during budget discussions. Mr. Bludau stated that he is going to look at vacant positions, possibly not fill some of them, and assign some to water quality inspections. PUBLIC COMMENTS — None. ADJOURNMENT — at 5:15 p.m The agenda for the Study Session was posted on February 19, 2003, 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 647 INDEX CITY OF NEWPORT BEACH City Council Minutes �rj II�� Regular Meeting February 25, 2003 - 7:00 p.m. �� INDEX STUDY SESSION — 4:00 p.m. CLOSED SESSION — Cancelled. 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 Heffernan. E. INVOCATION — Council Member Webb. F. PRESENTATIONS Presentation of $15,000 from the Arts Foundation. City Arts Commission Chairman Michaels introduced several members of the City Arts Commission and stated that the City Arts Commission is dedicated to providing cultural programs for residents and visitors. She stated that the Newport Beach Arts Foundation was created to support and extend the activities of the City Arts Commission by raising private funds, supplemental to City appropriations. Arts Foundation President Butera -King presented the facsimile check for $15,000 to :Mayor Bromberg. Mayor Bromberg acknowledged the efforts of the Arts Foundation and stated that the staff report for Item No. 15, Cultural Arts Annual Report FY 2001 -2002 and Program Preview FY 2002 -2003, provides good information on what they are doing. President Butera -King announced that a lecture demonstration on dance would be taking place on March 8, 2003, at 3:00 p.m. at the Central Library. Presentation of the American Society of Civil Engineers (ASCE) Project Achievement Award and the Orange County Engineers Council Plaque to the City of Newport Beach for the Balboa Village Project. Council Member Webb presented the awards to Principal Civil Engineer Stein, the project manager, City Engineer Patapoff and Gary Dysart of Psomas, and listed Volume 55 - Page 648 City of Newport Beach City Council Minutes February 25, 2005 INDEX the many City departments and companies involved with the project. Mayor Pro Tern Ridgeway commended both the Balboa Village Project and the City Arts Commission. 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 an update on the maintenance and legal ramifications, in regard to liability, for the relinquishment of Coast Highway in Corona del Mar. City Manager Bludau stated that the City Council previously approved the process for relinquishment to move forward and directed staff to negotiate with CalTrans. He stated that once the negotiations are complete, staff will be making a recommendation to the City Council. • Council Member Adams thanked staff for completing the median landscaping on Jamboree Road. He additionally acknowledged the City of Irvine for participating in the project. • Council Member Proctor requested that a future agenda item look at the possibility of the City providing funds to the Designated Drivers Association. He stated that it is a worthwhile project and noted the presentation that was provided at the City Council meeting of December 17, 2002. • Council Member Proctor requested that staff look into an issue at Villa Balboa regarding tree height restrictions. He asked if the City would be involved in the enforcement or if the residents would handle the situation through planned community development regulations. • Council Member Heffernan announced that he and City Attorney Burnham are still working on a future Study Session item addressing campaign reform /conflict of interest rules. He noted that letters were received from both Greenlight and Dave Ellis alleging serious campaign problems. • Mayor Bromberg announced that the Newport Beach Sister Cities Association recently hosted four representatives from Okazaki, Japan, and that a bench dedication was held on February 23, 2003, at Irvine Terrace Park paying tribute to Wendell Fish and Moe Hamill. • Mayor Bromberg announced that this year's Relay for Life in Newport Beach will be held on May 2 & 3, 2003, at Newport Harbor High School. He stated that Relay for Life is put on by the American Cancer Society to raise funds and awareness for cancer. In 2002, the Newport Beach event consisted of approximately 600 teams. More information can be obtained by calling 949 - 644 -3004. Volume 55 - Page 649 City of Newport Beach City Council Minutes February 25, 2003 I. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. Item removed from the Consent Calendar by a member of the INDEX Volume 55 - Page 650 audience. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCE FOR ADOPTION 3. MODIFICATION OF PROVISIONS OF CHAPTER 17.28 OF TITLE Ord 2003 -2 17 OF THE NEWPORT BEACH MUNICIPAL CODE (NBMC) Vehicle Usage on RELATING TO VEHICLE USAGE ON PIERS AND PLAZAS. Piers and Plazas Adopt Ordinance No. 2003 -2 amending Chapter 17.28 of Title 17 of the (85) NBMC. RESOLUTIONS FOR ADOPTION 4. Item removed from the Consent Calendar by a member of the audience. 5. CHANGE IN TERM OF THE AFFORDABLE HOUSING TASK Res 2003 -13 FORCE. Adopt Resolution No. 2003 -13 changing the term of the Affordable Housing Affordable Housing Task Force. Task Force (24) CONTRACTS AND AGREEMENTS 6. Item removed from the Consent Calendar by a member of the audience. 7. ENCROACHMENT AGREEMENT AND LANDSCAPE C -3600 MAINTENANCE AGREEMENT FOR CONSTRUCTION AND Landscape MAINTENANCE OF LANDSCAPE IMPROVEMENTS WITHIN Maintenance BISON AVENUE AND MACARTHUR BOULEVARD RIGHT -OF- Agreement/ WAY WITH THE IRVINE COMPANY. 1) Approve a Landscape MacArthur Blvd. Maintenance Agreement, required by Caltrans, between the City of (38) Newport Beach and The Irvine Company for installation and maintenance of landscape improvements within the MacArthur Boulevard right -of -way; 2) approve an' Encroachment Agreement between the City of :Newport Beach and The Irvine Company requiring The Irvine Company to maintain all landscape improvements within the MacArthur Boulevard and Bison Avenue right -of -way; 3) authorize the City Manager and the City Clerk to execute the agreements; and 4) authorize and direct the City Clerk to have the Encroachment Agreement recorded with the Orange County Recorder. 8. AMENDMENT TO GIRL SCOUT LEASE AGREEMENT. Authorize C -1955 the Mayor to enter into the 3rd Amendment to a 1987 Lease Agreement Girl Scout Lease with the Girl Scout Council of Orange County (GSCOC) that will extend Agreement the Girl Scouts' tenancy at the Girl Scout House (1700 West Balboa) to (38) Volume 55 - Page 650 City of Newport Beach City Council Minutes February 25, 2003 December 31, 2003. MISCELLANEOUS ACTION 9. BUDGET AMENDMENT TO APPROPRIATE ADDITIONAL FUNDS FOR STORM DRAIN MAINTENANCE CONTRACT SERVICES. Approve a budget amendment (BA -043) appropriating additional funds in the amount of $27,500 for storm drain maintenance contract services. 10. BUDGET AMENDMENT TO APPROPRIATE FUNDS FROM THE REIBER TRUST TO AN EXPENDITURE ACCOUNT. Approve a budget amendment (BA -046) in the amount of $10,000. 11. BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE NEWPORT BEACH ARTS FOUNDATION AND APPROPRIATE FUNDS FOR A SHAKESEPARE BY THE SEA PRODUCTION AND A CONCERT IN THE PARK PERFORMANCE AND CITY ARTS COMMISSION BROCHURE. Approve a budget amendment (BA -044) in the amount of $15,000. 12. Item removed from the Consent Calendar by Council Member Nichols. 13. Item removed from the Consent Calendar by Council Member Heffernan. 14. Item removed from the Consent Calendar by Council Member Nichols. 15. CULTURAL ARTS ANNUAL REPORT FY 2001 -2002; PROGRAM PREVIEW FY 2002 -2003 11NFORMATION ONLY). Receive and file. Motion by Manor Pro Tern Ridgeway to approve the Consent Calendar, except for those items removed (1, 4, 6, 12, 13 and 14). 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 1. MINUTES OF THE REGULAR MEETING OF JANUARY 28, 2003 AND THE ADJOURNED REGULAR AND REGULAR MEETING OF FEBRUARY 11, 2003. Jim Hildreth stated that some of his statements were misworded and others were left out in the minutes of both the regular meetings. He listed several areas that needed to be revised. Volume 55 - Page 651 INDEX; BA -043 Storm Drain Maintenance (40/51) BA -046 Library Services (40/50) BA -044 Arts Foundation Donation (40/62) Cultural Arts Annual Report (62) City of Newport Beach City Council Minutes February 25, 2003 Motion by Mavor Pro Tom Rideeway to waive reading of subject minutes, approve as written and order filed. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 4. ASSIGNMENT OF WASTE MANAGEMENT OF ORANGE COUNTY, A DIVISION OF WASTE MANAGEMENT COLLECTION AND RECYCLING, INC., NON - EXCLUSIVE SOLID WASTE FRANCHISE AGREEMENT. City Manager Bludau corrected the title of the item to read, "Assignment of Non - Exclusive Franchise Agreement with Waste Management of Orange County, a Division of Waste Management Collection and Recyling, Inc." Dolores Otting stated that she is confused by the name change for Waste Management and wanted to know what the name would be, why it's being changed and who initiated it. Ms. Otting stated that USA Waste and Waste Management merged, but she couldn't find USA Waste listed on the stock exchange on the internet. She stated that Waste Management is the largest company in the world for trash, but has a legacy of environmental crimes. She stated that she couldn't understand why the City would consider changing the franchise. Mayor Bromberg requested that staff look into the legitimacy of the company. Bob Coil, Waste Management of Orange County, stated that the merger is a technical one and is designed to make the company's tax reporting much simpler. He stated that the technical merger is from one waste management incorporated affiliate to another waste management incorporated affiliate. He noted that USA Waste of California is registered with the Secretary of State. Motion by Mayor Pro Tom Rid6wav to adopt Resolution No. 2003 -12 assigning the City franchise agreement with Waste Management of Orange County, a division of Waste Management Collection and Recycling, Inc. to USA Waste of California, Inc., dba Waste Management of Orange County; and approve Agreement to Assign the Waste Management of Orange County, a division of Waste Management Collection and Recycling, Inc. Non - exclusive Solid Waste Franchise Agreement to USA Waste of California, Inc., dba Waste Management of Orange County. Council Member Nichols suggested that the item be continued to verify the statements made by Ms. Otting. Volume 55 - Page 652 INDEX Res 2003 -12 Solid Waste Franchise Agreement Waste Management of Orange County (42) City of Newport Beach City Council Minutes February 25, 2003 Mayor Pro Tom Ridgeway stated that the City has a long -term contract with the company and there are no grounds for termination. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Mayor Bromberg Noes: Nichols Abstain: None Absent: None 6. BALBOA ISLAND PAVEMENT RECONSTRUCTION PHASE II — AWARD OF CONTRACT (C- 3555). Jim Hildreth stated that the construction work done on Little Balboa Island for the undergrounding of utilities has resulted in some cracks in the alley. He stated that he doesn't know what went wrong with the construction work, but the City should consider the potential for the same thing to happen again. He suggested that the lowest bid not always be accepted. Motion by Mayor Pro Tom Rideewav to approve the plans and specifications; award the contract (C -3555) to Sully Miller Contracting Co. for the total bid price of $135,565 and authorize the Mayor and the City Clerk to execute the contract; and establish an amount of $13,565 to cover the cost of unforeseen work. 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. BUDGET AMENDMENT TO APPROPRIATE A GIFT FROM THE NEWPORT BEACH LIBRARY FOUNDATION AND FUNDS IN THE DISTINGUISHED SPEAKERS LECTURE SERIES (DSLS) LIBRARY HOLDING ACCOUNT INTO THE DSLS EXPENDITURE ACCOUNT. Council Member Nichols asked what the criteria is for selecting the speakers and suggested that they be selected on a more equitable basis, between conservatives and liberals. He stated that for the amount of money being spent, the speakers should represent the median of the philosophical values in the community. Mayor Pro Tem Ridgeway stated that the issue is about freedom of speech and added that the selection of the speakers is within the purview of the Library Foundation. Council Member Nichols stated that as a taxpayer, he shouldn't have to support the lecture series. City Manager Bludau stated that the City Volume 55 - Page 653 INDE}C C -3555 Balboa Island Pavement Reconstruction (38) BA -047 Library Foundation Donation (40/50) City of Newport Beach City Council Minutes February 25, 2003 doesn't contribute to the lecture series. It is funded by contributions received by the Library Foundation. Mayor Bromberg stated that even if the City did fund it, freedom of expression has to be allowed. He added that members of the public do not have to attend the programs if they don't want to. City Attorney Burnham stated that the action before the City Council is to consider a budget amendment, and not the selection of the speakers. Motion by Mavor Pro Tom Ridgeway to approve a budget amendment (BA -047) in the amount of $65,000. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Mayor Bromberg Noes: Nichols Abstain: None Absent: None 13. BUDGET AMENDMENT — JULY 4TH SPECIAL APPROPRIATION — FISCAL YEAR 2003 -2004. Council Member Heffernan stated that a presentation was made by the Police Department at the Study Session on August 27, 2002, regarding the situation on July 4th in the West Newport area. He stated that he pulled the item so that the intent of the additional expenditures could be explained. Alan Silcock, President of the West Newport Beach Association, stated that the association is comprised of approximately 300 members. He referred to his letter of February 11, 2003, which was also included in the staff report. Mr. Silcock stated that the West Newport Beach area hosts approximately 100,000 visitors on July 4th and every year, the situation seems to get more out of control and more dangerous. He stated that the association formed a committee three years ago to address the concerns. In 2002, the City formed a committee, the July 46 West Newport Safety Planning Committee, which has met and made recommendations for July 4, 2003. He stated that the problem won't go away, but that a message should be sent that things are not the same. He stated that Newport Beach is a great place to enjoy a holiday, if it is done responsibly. Mr. Silcock stated that the additional funding will pay for the recommendations made by the committee. He encouraged the City Council to support the budget amendment. Peter Smith, West Newport Beach Association member, stated that he is grateful that the City spends the money it does and provides the services it does on July 4th. He stated, however, that the problem is the attitude that the City has towards the West Newport area year round. He stated that for West Newport to be brought up to the standards of the rest of the City, enforcement of City codes must be done year round. He added that it could also alleviate the problem on July 4th, because West Newport wouldn't have the party reputation it currently has. Volume 55 - Page 654 WNW BA- 001/FY2003 -04 July 4th Police Services (40/70) City of Newport Beach City Council Minutes February 25, 2003 INDEX Gene Dorney thanked the City for its efforts and encouraged the City Council to approve the budget amendment. He stated that the issue is one of public safety, and that law enforcement does a great job with a volatile situation, but that more needs to be done and improvements need to be made. Mr. Dorney stated that if a serious injury or problem can be prevented by the additional expenditure, it should be done. He noted that it's a step in the right direction, but won't solve all of the problems. Mike Johnson stated that July 4th is a problem and the party reputation of West Newport must be stopped. He stated that the City has to get tougher and make a positive change in the atmosphere. Mr. Johnson stated that the committee has worked hard. He asked the City Council to support the recommended action. Police Captain Henisey stated that the committee consists of council members, community members and City staff. He stated that they looked at several options for maintaining a safe and sane July 4th, and that the additional staffing will provide for law enforcement on every street in the affected area in West Newport. Street closures would also be in effect and are necessary to maintain safety in the area. By expanding the operations, a positive impact is expected. Per Council Member Heffernan's question, Captain Henisey stated that approximately 192 arrests were made from the morning of July 4, 2002, through the morning of July 5, 2002. Of those, approximately 20 were for felony violations. Council Member Heffernan noted that Huntington Beach has decided not to have fireworks on July 4th, 2003, in an effort to make the area less attractive to visitors. Captain Henisey additionally noted that additional law enforcement staffing allows for a quick response to any potential problems. Margaret Dorney, Director of the West Newport Beach Association, expressed her support for the recommended actions. Motion by Council Member Proctor to approve a budget amendment (BA -001) in the amount of $64,300 for the Police Department budget in fiscal year 2003 -2004 to fund additional police resources for the July 4, 2003 holiday. Council Member Proctor thanked all those who had participated on the committee. He stated that an extensive survey was done with the residents in the affected area and that 1000 people responded. He reported that 20% of the respondents wanted to maintain the law enforcement presence as it was in 2002, and 700/6 wanted to see it increase. He stated that as a result of the survey, recommendations were made by the committee that would preserve public safety at the highest possible level while still permitting people to enjoy the holiday in a safe and sane manner. He outlined how the additional funding would be spent. In response to comments made by Mr. Smith earlier, Mayor Pro Tom Volume 55 - Page 655 City of Newport Beach City Council Minutes February 25, 2003 Ridgeway disagreed and stated that the West Newport area is heavily policed on a year round basis. He noted that 62% of the City's police calls are for the West Newport and peninsula area. He commended the Police Department, but agreed that a long -term solution is still needed and suggested that more owner - occupied units would help the situation. He hoped that the committee would stay together to come up with some long -term solutions. He also felt, however, that it was important to establish deterrents for the July 4th 24 -hour period. Mayor Bromberg stated the problems on July 4th in the West Newport area didn't happen overnight and they wouldn't be fixed overnight, but the recommended action would be a start. 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. BUDGET AMENDMENT — CALIFORNIA SEAT BELT COMPLIANCE CAMPAIGN PROGRAM — FISCAL YEAR 2002- 2003. Council Member Nichols asked for an explanation of how the compliance program will work. Captain Henisey stated that the budget amendment is to provide funds for the Police Department to do seat belt use education and enforcement. Mayor Pro Tem Ridgeway asked how the citizens would be notified. Captain Henisey stated that there are two periods during the year where there is a statewide emphasis on enforcement, and that it includes a multi -media program. He stated that the City would be issuing a press release and providing information to the schools to educate the public on the importance of wearing seat belts and that a compliance campaign program would be in effect. Council Member Nichols asked if warnings would be given, what the fines would be for citations and if backseat drivers would also be cited. Captain Henisey stated that the program will include warning citations and actual citations requiring a person to' appear in court. He stated that all passengers are required to wear seat belts, and that the laws for children and child safety seats would also be enforced. Council Member Proctor noted that the seat belt laws are not new. Council Member Nichols asked what the fine would be. Captain Henisey stated that the court does not provide specific fine information. Council Member Nichols confirmed with Captain Henisey that a citation would require a court appearance. He felt that the public should know that the enforcement program would be taking place. Volume 55 - Page 656 INDEX BA -045 California Seat Belt Compliance Program (40/70) City of Newport Beach City Council Minutes February 25, 2003 r l-B oT`'i,1 Council Member Proctor stated that the message from the City should be that the public should comply with the seat belt laws throughout the year. Captain Henisey stated that the public should also understand the importance of wearing seat belts and that it could save them from serious injury or death. Mayor Pro Tom Ridgeway agreed with the comments of Council Member Proctor and stated that it's a year -round safety issue. Motion by Council Member Proctor to approve a budget amendment (BA -045) of $5,174 for the Police Department budget in fiscal year 2002- 2003 to fund additional seat belt enforcement as a part of the California Seat Belt Compliance Program. 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 stated that it was previously brought to the City Council's attention that a City-installed ladder was unsafe and unwise. He noted that the ladder has been removed by the City. Mr. Hildreth additionally noted that due to the retirement of the Harbor Resources Director and the replacement of the position by a Harbor Resources Manager, there is now no one to take care of the City's documents. Mr. Hildreth displayed a municipal services statement from the City. He stayed that the bill will have to paid, but it will be paid out of protest due to incorrect wording on the bill. • Elaine Linhoff stated that the City's Modifications Committee approves minor encroachments. She stated that she reviewed the actions of the committee during the last seven months and that there were 36 approvals and 2 denials. Ms. Linhoff stated that most all of the encroachments are being approved and that every time a structure is being remodeled, it gets bigger. She also noted the many lot line adjustments to combine lots, and stated that these are examples of the City allowing creeping mansionization. She requested that the City Council address the issue. Council Member Nichols stated that he doesn't see a problem with a resident combining lots and having a single family dwelling built. He stated that this often results in less square footage than is allowed for the lot. • Laura Dietz requested that when a permit is issued for a private fireworks display that the applicant be required to notify the public of the event. Volume 55 - Page 657 City of Newport Beach City Council Minutes February 25, 2003 INDEX Dolores Otting confirmed that the letters from Greenlight and Dave Ellis, as mentioned earlier by Council Member Heffernan, are available to the public. Additionally, Ms. Otting stated that she recently read in the local newspaper that the funding for the cover for the Big Canyon Reservoir would be received this year and that the cover would be installed next year. She expressed her dissatisfaction with such a delay in having the cover installed. She suggested that a future Study Session item address the water quality at the reservoir. Mayor Bromberg suggested that Ms. Otting talk with Assistant City Manager Kiff about her concerns. City Manager Bludau added that the City isn't just waiting for the funding to come in before proceeding with the installation of the cover. He stated that the design of the cover is currently taking place and when completed, construction of the cover will begin. Council Member Heffernan added that there is much more involved with the installation of the cover and that issues such as neighbor concerns, landscaping, earthquake analysis and water purification are also being addressed. City Manager Bludau noted that the water at the reservoir is tested around the clock. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Ad Hoc General Plan Update Committee (GPUC). Council Member Adams announced that GPUC met on February 24, 2003, and that they discussed their recommendations for the vacancies on the General Plan Advisory Committee (GPAC). He stated that this item would be on an upcoming City Council meeting agenda. He stated that the committee also discussed the vision statement and voted to recommend that the statement be looked at by the Planning Commission and that they make a recommendation to the City Council for adoption or endorsement. Council Member Adams received general agreement from the City Council on the recommended process. Local Coastal Program Certification Committee. Mayor Pro Tem Ridgeway stated that the committee would be meeting on February 27, 2003, at 3:00 p.m. in the Council Conference Room. He stated that the draft report is being reviewed by the department heads and their responses will be reviewed at the upcoming meeting. Newport Coast Advisory Committee (NCAC). Council Member Heffernan stated that the NCAC is dealing with the fuel modification zones and a modification to the preannexation agreement. He stated that the process to modify the agreement will be extensive due to the details in the agreement and the number of parties involved. He announced that the next meeting of the NCAC will be on March 4, 2003, at 5:30 p.m. at Newport Coast Elementary School. Councilmanic Redistricting Committee. Mayor Bromberg announced that the committee would be meeting the first week in March. Volume 55 - Page 658 City of Newport Beach City Council Minutes February 25, 2003 M. N 16. PLANNING COMMISSION AGENDA FOR FEBRUARY 20, 2003. Planning Director Temple stated that there were six items on the Planning Commission agenda for February 20, 2003, and that three of the items were continued. Two were continued due to requests of the applicants and one was continued to allow staff to research code requirements requested by the Planning Commission. Planning Director Temple stated that use permits for Me and My EV, the Bayview Affordable Senior Housing project, and Tony Roma's and Bennigan's were approved. Assistant City Manager Wood added that the meeting began with a joint meeting of the Planning Commission and the General Plan Update Scoping Subcommittee to discuss the issues that should be addressed in the general plan update process. She stated that this included a discussion on what the roles of the Planning Commission and the City Council should be throughout the process. Planning Director Temple announced that three of the Planning Commissioners would be attending the League of California Cities Planners Institute to be held March 20 -22, 2003. She stated that since a fourth member could also not attend the Planning Commission meeting scheduled for March 20, 2003, the meeting has been canceled. PUBLIC HEARINGS 17. COUNCIL REVIEW OF THE APPROVAL OF MODIFICATION PERMIT NO. 2003 -003 — THE ENCROACHMENT OF A 12 -FOOT WIDE ENTRY PORCH WITHIN THE 9 -FOOT FRONT YARD SETBACK— 1530 & 1532 OCEAN BOULEVARD. Council Member Heffernan stated that he called the item up for an explanation of what the Modifications Committee does and how the process works. Planning Director Temple stated that the City's Zoning Code establishes the modification process and identifies which types of variations can be addressed through the process. She stated that these might include encroachments into required setbacks, fences and certain types of architectural features. She stated that a property owner has the right to apply, and there is a regular and routine process. The meetings are open to the public and public hearing notices are provided. The committee's considerations of the permits are based on the standards established in the Zoning Code. Planning Director Temple stated that she reviewed the setback encroachments that were reviewed by the committee during the past year. Of the 33 applications, 18 were approved as requested, 12 were approved as modified and 3 were withdrawn. Council Member Nichols stated that he's concerned about up /down condominiums and their approval by the Modifications Committee on a regular basis. Volume 55 - Page 659 INDE}C Planning Commission (68) 1530 & 1532 Ocean Blvd./ Modification Permit No. 2003 -003 (68) City of Newport Beach City Council Minutes February 25, 2003 INDEX Council Member Adams stated that he respects why Council Member Heffernan called the item up, but that the discussion needs to be confined to 1530 Ocean Boulevard. He stated that, if desired, the validity of the Modifications Committee could be agendized for a future meeting. Council Member Webb asked why the project is unique and would require the porch to go into the setback area. Planning Director Temple stated that there were two modifications prior to the current request, both of which requested a decrease in the encroachment even though the property was getting larger. Mayor Bromberg confirmed that the encroachment request involved a twelve -foot wide porch that would encroach two feet, eight inches into the nine -foot setback. Planning Director Temple stated that the committee approved an encroachment of two feet. Per Council Member Adams' question, Planning Director Temple stated that landscaping or any structure that is three feet or less is allowable in a setback. Council Member Adams noted that this means that a setback is not necessarily an area without anything in it. Mayor Pro Tem Ridgeway stated that eves and fireplaces are also allowed without a modification. Planning Director Temple confirmed that there are certain permitted encroachments into various setbacks and that they are usually limited in location or dimension. Mayor Bromberg stated that this is why such requests are looked at on a case -by -case basis. Council Member Heffernan stated that in this situation, the applicant received a modification, bought the lot next door and received another modification. Planning Director Temple confirmed that the applicant received the original approval in 1999 in association with the remodeling of a house on a single lot. The adjoining lot was purchased prior to the applicant implementing the approval. The second approval reduced the encroachment and the third approval reduced it even further. Council Member Heffernan confirmed that a lot line adjustment was also approved. Council Member Adams stated that he may not have approved the earlier modifications, but that the current modification is for a reduction in the entitlement and should be approved. Mayor Bromberg opened the public hearing. Rob Williams, KTGY Group, architect for the applicant, stated that the 1999 modification approved a two -foot, eight -inch encroachment into the front setback for a fourteen -foot wide porch. Later, the applicant purchased the adjoining lot and in October, 2002, a lot line adjustment, the existing nonconformity and a new encroachment of two feet were approved. Mr. Williams stated that the most recent modification asked for a twelve -foot wide porch with a two -foot, eight -inch encroachment. Volume 55 - Page 660 City of Newport Beach City Council Minutes February 25, 2003 He displayed a model of the new home and pointed to the location of the entry porch and the changes that were made. Council Member Webb asked if the existing home was being demolished. Mr. Williams stated that the existing home is staying the way it is. He explained that it is being added to, some interior work is being done and the porch is being moved to provide for a more balanced home. Elaine Linhoff stated that there were neighbors that were opposed to the original modification. She stated that they were dissuaded from filing an appeal due to the cost, which was $750 at the time and is now $875. Council Member Adams stated that an appeal is expensive, but a council member can call up an item at no cost. He stated that the public can ask a council member to call up an item. Tom Tobin stated that he shares a twenty -foot alley with the Toohey's, the applicant, and supports the proposed porch. He added that it's a beautiful home. Hearing no further testimony, Mayor Bromberg closed the public hearing. Mayor Bromberg agreed that the appeal process is expensive, but reiterated that the public can contact a council member to call up an item. Motion by Council Member Adams to approve Modification Permit No. 2003 -003 subject to the findings and conditions of approval adopted by the Modifications Committee. 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. CURRENT BUSINESS [taken out of order] 21. ANNEXATION OF AREA 7 (WEST SANTA ANA HEIGHTS, SANTA ANA COUNTRY CLUB AND SOUTH OF MESA) — LETTER TO ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION (LAFCO), FISCAL IMPACT AND RELATED ANALYSES. Motion by Mayor Brombere to continue the item to March 11, 2003. Mayor Pro Tom Ridgeway stated that he would be abstaining from voting on the matter due to a conflict of interest. Volume 55 - Page 661 INDEX West Santa Ana Heights /Santa Ana Country Club Annexation (21) City of Newport Beach City Council Minutes February 25, 2005 Council Member Heffernan confirmed with City Manager Bludau that this would not impinge upon any time - critical issues. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: Ridgeway Absent: None 18. BAYVIEW SENIOR AFFORDABLE HOUSING CONSISTING OF 150 UNITS ON APPROXIMATELY FIVE ACRES & UPPER BAYVIEW LANDING VIEW PARK. Senior Planner Campbell stated that the project was introduced to the public at a workshop on January 23, 2003, and the City has prepared a Mitigated Negative Declaration in accordance with the California Environmental Quality Act (CEQA). The Planning Commission approved the project at their meeting of February 20, 2003. Senior Planner Campbell stated that due to the comments received during the review process, the roof height has been lowered by five feet, from 40 feet above finished grade to 35 feet above finished grade, and a foot was removed from the third level. Using a PowerPoint presentation, Senior Planner Campbell displayed an aerial photo of the project site with outlines of the proposed buildings. Additionally, he displayed view simulations, with and without the project, from five different locations. Senior Planner Campbell stated that one of the issues discussed at the Planning Commission meeting was parking adequacy. He stated that the Planning Commission concluded that sufficient parking was being provided. He noted that 180 spaces are being provided for 150 units. Traffic congestion was also discussed, but none is expected and is noted as such in the traffic study and negative declaration. He stated that grade alteration was also discussed and is the subject of the site plan review application. He noted that it was determined that the pad height would need to be increased approximately five feet on average across the site. Senior Planner Campbell stated that the project includes a detention basin to provide for a ten -year storm water event. As mentioned earlier in his report, he listed the lowering of the roof as a change that was made by the Planning Commission. Public views were also discussed at Iength and the Planning Commission concluded that the use permit and application should be approved. He stated that '/- acre of natural habitat would be removed, but it would be replaced on the park site at a four -to -one ratio per the requirements of the mitigated negative declaration. The mitigated negative declaration also requires that additional testing and onsite monitoring be done in regard to archeology, and the Planning Commission felt that this was adequate. In regard to coastal bluff alteration, the Planning Commission felt that there was a balance between minimizing the alteration with the City's desire to build affordable housing on the site. Senior Planner Campbell stated that other concerns 'expressed at the meeting included the Volume 55 - Page 662 INDEX Use Permit No. 2003 -003 Bayview Senior Affordable Housing/ Upper Bayview Landing View Park (88) City of Newport Beach City Council Minutes February 25, 2003 INDEI( location of the site for senior affordable housing and the lack of nearby services, but the Planning Commission felt that the site was suitable. He pointed out that the mitigated negative declaration is for both projects and although the Planning Commission does not have jurisdiction over the park project, they did comment on the document. Senior Planner Campbell displayed a conceptual grading plan and reviewed some of the grading that is being proposed. He handed out an errata sheet, which listed several changes to the mitigated negative declaration. He stated that these changes to the grading plan do not create any new environmental impacts or change the severity of any of the previously identified impacts, which means that the document does not need to be recirculated. Mayor Bromberg asked if the height of the buildings could be brought down at all. Senior Planner Campbell stated that the first and second floors are each nine feet, and the third floor is eight feet. He noted that these are floor -to -floor measurements, indicating that there really isn't any space to take out of the building. He added that the grade can't be lowered further without compromising drainage. Council Member Nichols suggested that the buildings be turned around and moved closer to Jamboree Road, which would reduce the view impact. He noted that the park is beautiful, but has been reduced dramatically in size. Council Member Nichols also questioned some of the proposed grading and the impact on views. Using the conceptual grading plan on display, Council Member Nichols and Senior Planner Campbell discussed some of the details of the slopes and grades. Council Member Nichols displayed an alternate project site plan that places the three buildings closer to Jamboree Road and increases the available land for the park. Assistant City Manager Wood stated that the exchange of property between the housing and park sites is even. She explained that the configuration changes after the lot line adjustment, but size is not affected. She noted that the detention basin would be on the park site. Mayor Bromberg stated that it's important to remember that the bay currently can't be seen from Coast Highway, but the view will be opened up by the project. Mayor Bromberg opened the public hearing. Allan Beek stated that he supports the grading on the top of the bluff that will open up the view of the bay from Coast Highway. He stated, however, that although he understands that the exchange of property is even, he doesn't feel that the detention basin should be on the park site when it is there to serve the housing site. Mr. Beek agreed with the suggestion by Council Member Nichols to move the buildings closer to Jamboree Road. He stated that the buildings, as currently proposed, are encroaching too far into the park. Mayor Bromberg asked what the distance between the buildings would Volume 55 - Page 663 City of Newport Beach City Council Minutes February 25, 2005 INDEX be with the proposed plan. David Smith, Thomas Cox Architects, stated that the distance ranges between 35 and 40 feet. Mayor Bromberg pointed out that with Council Member Nichols' suggestion, the view from Jamboree Road would be of a clump of buildings. Mr. Smith stated that orienting the buildings towards Jamboree Road also increases the impact of noise and congestion for the residents of the housing project. Mr. Smith additionally pointed out that fire codes require a loop -road system. Moving the buildings to Jamboree Road would not allow for the second access road that is required. Mr. Smith stated that moving the parking to the bay side of the project doesn't give the project the front door view that is desired either. With the proposed plan, the parking can't really be seen from Jamboree Road anyway due to the fact that Jamboree Road climbs in elevation at that point. Mr. Smith stated that the detention basin serves both sites and due to the location of the bike path, it benefits both sites in its proposed location. Mayor Bromberg asked for a response to the concern about the project having adequate parking. Bill Whittey, The Related Companies of California, stated that his company owns and operates several affordable senior housing complexes. He stated that a particular project in La Mirada has many similarities to the proposed Bayview project, and is very popular and very successful. He stated that the parking at the La Mirada site is 1.15 parking spaces for every unit. He stated that the parking at the Bayview site is 1.20 spaces per unit. Mr. Whittey noted that the parking at the La Mirada site is approximately 80% utilized at any given time. He stated that space and driving utilization is different at affordable senior housing complexes due to the makeup of the tenant population and the income limits. He expressed his confidence that the parking would be more than adequate. Council Member Heffernan asked if the La Mirada site was similar to the Bayview site in regard to the sloping area adjacent to the site, the absence of street parking and the lack of nearby services. Mr. Whittey stated that the closest retail area to the La Mirada site is one mile away and the site is surrounded by a culvert which banks up to homes behind it. He noted that the Senior Oasis Center is discussing the possibility of offering transportation services for the Bayview site. Additionally, Mr. Whittey stated that the Bayview site offers more amenities and is considered a spectacular site for affordable senior housing. Mayor Bromberg noted that it is just about the only site available in the City. Dennis Baker, Earth Resource Foundation (ERF), stated that the foundation is in support of the project. He noted that the support is based on 100% restoration of the natural habitat in the park and that the park be a passive park. He explained that a passive park maintains the natural habitat while offering walking and biking paths, and views. Mr. Baker stated that the support of ERF is also based on the proposed plans as currently submitted. H. Ross Miller, Advocacy Chairman for the Friends of Oasis Senior Center and Senior Housing Chairman, stated that the Friends accept Volume 55 - Page 664 City of Newport Beach City Council Minutes February 25, 2003 INDEX the Bayview site for a senior affordable housing project, feel that the transportation and parking are adequate, and agree with the comments made by Mr. Whittey. Mr. Miller stated that the Friends would be operating a transportation system for the site. He stated that the need for affordable senior housing is great and that the Friends also support the loan agreement being recommended in Item No. 19. Mr. Miller asked for the City Council's approval of the recommended action and also hoped that the Coastal Commission would approve the project. Council Member Heffernan asked how the tenant selection process will work and if Newport Beach residents will have preference. Mr. Whittey stated that fair housing laws disallow a restriction on occupancy at any community development. He stated that a management plan will be developed and marketing will be done through local organizations. Mayor Bromberg asked if a lottery method would be utilized. Mr. Whittey stated that it hasn't been determined yet, but that the community will understand well in advance how the process will work. Val Skoro, Chairman of the Parks, Beaches & Recreation (PB &R) Commission Park Development Subcommittee, stated that the PB &R Commission is in support of the project. He stated that many people can walk to the park and many more will drive by it. He stated that the park will be a passive /view park and that it will be important to make it a resident - friendly park, which means that there may be some turf on the site. Mr. Skoro stated that the PB &R Commission has not had the opportunity to consider or make recommendations to the park landscape design. He stated that the PB &R Commission would like the opportunity to conduct a public outreach program. He specifically noted the preliminary landscape plan, and stated that it's premature to discuss irrigation and plant types until the grading is completed. Mayor Bromberg stated that the funds for the park project are limited. He noted that the Newport - Balboa Rotary Club has asked to participate in the project. Barry Allen stated that he's in support of the project, but feels that the parking is inadequate. Additionally, he felt that the retention basin should be built for a 25 -year storm. Lastly, Mr. Allen asked if there was any parking designated for the park. Mayor Bromberg stated that there is no parking planned for the park. Mr. Allen stated that he lives too far away to walk to the park. Debra Allen, Chairman of the PB &R Commission, stated that the commission is in support of the project, but agreed with the earlier comments by Mr. Skoro that the irrigation and vegetation of the park should not be specified at this stage in the process. Council Member Webb stated that additional grading on the park site will allow for a better view from Coast Highway and Jamboree Road. Ms. Allen stated that the more view, the better. Volume 55 - Page 665 City of Newport Beach City Council Minutes February 25, 2003 INDEX Mayor Bromberg asked if the reference to irrigation could be removed from the conceptual plans. Senior Planner Campbell stated that this could happen and the details can be worked on later. He stated that it is important, however, that language designating the site as a view park and open space, and the use of the area for coastal sage mitigation remain. Steve Morrison stated that he is in support of senior housing, but he has several concerns with the proposed project. He stated that he heard that the pad height only needed to be raised 2.5 feet. He asked that this be incorporated into the plans. Mr. Morrison stated that it should also be clear that one of the conditions of using the Bayview site for senior housing is that The Irvine Company gets 30,000 square feet of commercial space in Fashion Island. Lastly, he stated that he is also concerned about the adequacy of the parking and the retention basin. City Attorney Burnham stated that the transfer of entitlement is mentioned in the staff report and is also a part of the land use element. Assistant City Manager Wood stated that the pad height has not changed and will remain at five feet. Kahn Lee stated that he owns property near the site and that he worked hard to earn the money to make the purchase possible. He stated that the requests of the residents in his community have been ignored. Mr. Lee suggested that the first and second floors each be lowered by one foot to eight feet. He also agreed with Mr. Nichols' suggestion to rotate and move the buildings closer to Jamboree Road. In closing, Mr. Lee stated that the concerns of the residents in his community should be considered. Walt Nutting stated that there's a problem with saying that the project will have no negative impact. He stated that seniors walk and to assume that they don't, is wrong. He stated that the project is one block away from a shopping center and Balboa Island, and he expressed his concern for seniors crossing Coast Highway at Jamboree Road. He additionally noted that Newport Beach is different than La Mirada and it shouldn't be assumed that there will primarily be one person living in each unit with one car. Mayor Bromberg confirmed with Mr. Nutting that he was aware of the income requirements that must be met to qualify as a resident at the project. Ray Halowski, Surfrider Foundation, stated that he noticed quite a bit of pavement for the parking lot and bicycle trails in the plans. He suggested that porous pavement be used, because it is better for the environment and will take some of the pressure off of the retention basin. Judith Ahearn expressed her concern for the lack of parking. She asked for a clarification on the height of the pads. Senior Planner Campbell displayed the conceptual grading plan and pointed to the changes being made to the grading. Ms. Ahearn confirmed that the pad heights are not Volume 55 - Page 666 City of Newport Beach City Council Minutes February 25, 2003 changing. INDEX: Council Member Webb stated that what is being changed is that the roof height is being lowered five feet. Jan Vandersloot stated that he supports the concept of the project and the combination of the housing and park projects into one project. He agreed with the recommended changes to the grading and the increase in the amount of coastal sage scrub. Dr. Vandersloot noted that there are two archeology sites in the area. He requested that the extent and the significance of the sites be investigated prior to any grading being done. Dr. Vandersloot also agreed with the change to have less alteration to the bluff face. He stated that much of the environmental support for the project is based on the designation of the park as a natural view park with native vegetation restored. He did agree that some type of temporary irrigation will be needed on the site. He further suggested that the retention basin be increased to a 25 -year storm event. He supported the basin being in the park area and noted that it could serve as a public education tool regarding urban runoff. In closing, Dr. Vandersloot asked that the City Council approve the project. Council Member Webb pointed out that the mitigation measures do include test excavations on both of the archeology sites. Hearing no further testimony, Mayor Bromberg closed the public hearing. Mayor Pro Tom Ridgeway stated that he's the chairman of the Housing Task Force. He stated that the site is 5.6 acres and is owned by The Irvine Company, who is donating the site for the project. Mayor Pro Tom Ridgeway further noted that the transfer of entitlement for the commercial space has been in the text for years. He stated that the 150 units helps to meet the City's obligation to the State and the region for affordable housing and that the need is great. He expressed his support for the project. Motion by Mayor Pro Tom Ridgeway to adopt the Draft Mitigated Negative Declaration, as amended per the terms on the errata sheet; approve Use Permit No. 2003 -003, Site Plan Review No. 2003 -001, as amended to increase the grade of the building sites, and Lot Line Adjustment No. 2003 -011, subject to the findings and conditions of approval adopted by the Planning Commission (PA2002 -246); approve the conceptual plans, after revisions are made by staff, for the Upper Bayview Landing view park and authorize staff to submit a Coastal Development Permit application to the California Coastal Commission for the view park project as a joint application with the affordable senior housing project; and direct staff to provide the ability for the Parks, Beaches & Recreation Commission to conduct an outreach program for the design of the park. Mayor Pro Tom Ridgeway stated that the plan suggested by Council Member Nichols would look like one big wall from Jamboree Road. He stated that there are adequate view corridors with the proposed plan Volume 55 - Page 667 City of Newport Beach City Council Minutes February 25, 2003 and feels that the plan has been prepared responsibly. Council Member Nichols stated that the proposed plan doesn't provide the views that his suggested plan would and, in addition, the proposed plan reduces the size of the park. He stated that he supports affordable housing, but feels that a better plan could have been designed. Pointing to the conceptual grading plan on display, Council Member Webb stated that the proposed plan improves the view corridors, which is a key element in the plan. Mayor Bromberg stated that he is proud of the project and noted that there are approximately 12,000 seniors in the City. He thanked those involved with the project and specifically acknowledged Assistant City Manager Wood. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Recessed at 10:40 p.m and reconvened at 10:50 p.m with all members present. P. CURRENT BUSINESS [taken out of order] A 22. POTENTIAL REVISIONS TO CITY TREE ORDINANCES AND POLICIES. Motion by Council Member Webb to continue the item to March 11, 2003. Noting the number of people in the audience present for the item, Mayor Pro Tom Ridgeway requested that the item be taken as early in the meeting as possible. 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. DEVELOPMENT LOAN AGREEMENT WITH NEWPORT HOUSING PARTNERS, L.P. FOR SENIOR AFFORDABLE HOUSING AT LOWER BAYVIEW LANDING. Assistant City Manager Wood stated that there are a series of Volume 55 - Page 668 INDEX City Tree Ordinances & Policies (62) C -3601 Bayview Senior Affordable Housing/ Development Loan Agreement City of Newport Beach City Council Minutes February 25, 2003 agreements that would govern the City's loan of $1 to $1.5 million to the Lower Bayview Landing Senior Housing project. She noted that there is a guarantee by The Related Companies to complete the project within five years, free of all liens. Additionally, she noted that the additional $500,000 that may be needed is conditional and would only be used if the project becomes subject to prevailing wages caused by the developer failing to meet the schedule outlined in the loan agreement. Council Member Heffernan stated that in the completion guaranty, section 2, the sentence midway through the paragraph should read `...shall pay the lender the lesser of $250,000 or the then outstanding principal.... ... Noting Assistant City Manager Wood's earlier comments, Mayor Pro Tem Ridgeway stated that action at the State level could exempt affordable housing projects from prevailing wages. He stated that it is unlikely that the additional $500,000 will need to be used. Motion by Mayor Pro Tern Ridveway to authorize the Mayor to execute the agreements in substantially the same form as presented and as amended by Council Member Heffernan. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None 20. MARINAPARK RESORT PROJECT — RECOMMENDATIONS OF AD HOC COUNCIL COMMITTEE — PROPOSED CONCEPTUAL APPROVAL OF PROJECT DESCRIPTION AND SECOND PROPOSED AMENDMENT TO SUTHERLAND TALLA HOSPITALITY (STH) AGREEMENT. Mayor Bromberg announced that the Sutherland Talla Hospitality Resort Project Review Ad Hoc Council Committee is recommending that the City Council commence a process to bring the Marinapark Resort project issue to a vote of the electorate. He stated that approving the recommended action does not mean that the City Council is recommending approval of the proposed project. The site plans, however, will be considered as the project for the purposes of preparing the Environmental Impact Report (EIR). Mayor Bromberg noted that a vote of the people is not required under the guidelines of Measure S, but the developer has indicated that he would like to bring the issue to the voters, which would mean that an EIR is not required. He added that if the project went to a vote of the people due to the request of the City Council, an EIR would be required and paid for by the developer. The ad hoc committee feels that a vote is appropriate due to the fact that the issue has been a subject of controversy and the property is bayfront property owned by the City. The property also rests on State -owned tidelands property, of which the City is the steward. Mayor Bromberg Volume 55 - Page 669 INDEX: (38) C -3389 Sutherland Talla Hospitality/ Marinapark Resort Project (38) City of Newport Beach City Council Minutes February 25, 2003 INDEX stated that having a vote is a good thing and the intent of Measure S. He felt that is was also important to have an EIR prepared. Council Member Proctor asked for an explanation of what the City's obligations are in regard to the property and development on the site. City Attorney Burnham stated that in 2000, the City Council received and reviewed approximately eight proposals for the redevelopment of Marinapark. The Sutherland Talla Hospitality proposal for a resort complex was selected as the concept that the City would like to pursue, and an agreement was entered into between the City and Sutherland Talla. City Attorney Burnham stated that this obligated Sutherland Talla to submit planning documents that would be evaluated by the City to determine if the project would be the one the City would pursue for purposes of the California Environmental Quality Act (CEQA). Per Council Member Proctor's question, City Attorney Burnham added that the State Lands Commission has determined that the property consists primarily of tidelands and would be inappropriate for permanent residential use. City Attorney Burnham stated that the recommendations of the ad hoc committee include direction to staff to prepare amendments to the agreement to implement the recommendations of the ad hoc committee. He noted that this would be agendized for the March 11, 2003, City Council meeting. Mayor Bromberg noted that the general plan update process included a telephone survey, and that one of the questions asked if there should be a hotel on the peninsula. Mayor Bromberg reported that most people responded in the negative. He stated that some people have interpreted this to mean that the City should not let the Marinapark Resort project go to a vote. Mayor Bromberg stated that the general plan update process covers the entire City and the survey was not meant to act as a survey for any specific project. Council Member Heffernan agreed that it's good to let the people vote on the project, even though it is not required under the guidelines of Measure S. He asked for a clarification on how the process would work and, specifically, if the voters would be voting on the concept of a hotel at the site or if they'd be voting on the specific plans of a project. City Attorney Burnham stated that the ad hoc committee is recommending that the City Council approve the 110 -room resort complex represented in the site plans submitted by Sutherland Talla as the project for the purposes of the EIR only. The EIR process would then take place, but the City Council would not actually approve or deny the project. Council Member Heffernan stated that it seems that the City Council would first have to decade what will occur at the site, since the EIR process would look at that chosen project. City Attorney Burnham stated that the EIR process also looks at alternatives to the project. One alternative would be "no project" or no change to the land use element, which for the Marinapark site is recreational/open space. He stated that other alternatives would include "no development" or leaving the site as is with the mobilehome park use, and an alternative for implementation of the current recreational/open space designation. Council Member Heffernan asked if the park concept would be developed to the degree it would be if park were the chosen project for purposes of the EIR. City Volume 55 - Page 670 City of Newport Beach City Council Minutes February 25, 2003 INDEX Attorney Burnham stated that, typically, the alternatives are not analyzed to the same level of detail as the project. He added that the City Council has the right to do a project -level analysis on any of the alternatives. Council Member Nichols asked if the City is required to pursue the hotel use due to the agreement with Sutherland Talla. City Attorney Burnham responded in the positive and stated that hotel use is what the City Council decided to pursue in 2000. He noted that Sutherland Talla has complied with their obligations under the agreement and the ad hoc committee is recommending that the City Council embark upon a process that would fully inform the voters of the impacts of the hotel and alternative uses. Mayor Bromberg added that the EIR would also be reviewed by the Environmental Quality Affairs Citizens Advisory Committee (EQAC). City Attorney Burnham stated that there will be a substantial amount of time from when the EIR is ready for Planning Commission and City Council review and when action needs to be taken to put the measure on the ballot. Other reports can also be requested by the City Council to assist the voters in their evaluation. City Attorney Burnham confirmed for Mayor Pro Tem Ridgeway that the City would have to certify the EIR. Council Member Webb suggested that clear direction be provided to the voters on what will happen to the site if the hotel is voted down. He specifically suggested that the EIR clearly cover in sufficient detail the result of implementing the recreational/open space designation. Council Member Adams stated that Sutherland Talla's desire to put the project before the voters allows the project to shortcut the CEQA process, which is not right and a problem with Measure S. He stated that the remedy is for the City to be preemptive and make sure that the CEQA process is followed, which is the reason he is supporting the project going to the voters. Council Member Heffernan agreed that the City Council is giving up something it should be deciding. He confirmed with City Attorney Burnham that the recommendation by the ad hoc committee is a consistent extension of the original agreement to proceed with a Sutherland Talla hotel at the site. Council Member Nichols asked exactly what a negative vote for the hotel would mean. City Attorney Burnham stated that it would mean that the general plan and land use element in the land use plan of the local coastal program would not be changed, which would mean that community facilities consistent with tidelands use would be implemented for the recreational/open space designation. Elaine Linhoff stated that at the recent Mayor's Dinner, Mayor Bromberg stated that the general plan update is the most important issue facing the City Council. She stated, however, that instead, the Volume 55 - Page 671 City of Newport Beach City Council Minutes February 25, 2005 INDEX City Council seems to use the general plan when it suits them and ignore it, when it doesn't. She pointed to the Cannery Lofts project as an example of a project that was approved while ignoring the general plan. She stated that the same is true of the Sutherland Talla proposal. Ms. Linhoff stated her support for the matter going to a vote. Tom Hyans, President of the Central Newport Beach Community Association, stated that the Association's policy is that if the current uses at the site are not renewed, the site should be converted to public, marine - oriented recreational use. He suggested that the agreement with Sutherland Talla be terminated immediately. Mr. Hyans cited previous actions by the City Council that were inconsistent with the general plan and the desire of the public. He stated that the public, through the general plan update process, has indicated that they do not want a hotel at the site. He asked that the City Council not ignore the message being sent by the public. He added that the revenue projections for the hotel aren't accurate and, in addition, the City has no obligation to generate revenue on State tidelands. He stated that public benefit on the site should be acceptable and any private use should yield fair market value. Mr. Hyans requested the City Council proceed with an acceptable use for Las Arenas park and beach, and that there are numerous reports and studies supporting development of public, marine - oriented uses for the property. Mayor Bromberg pointed out that Mr. Hyans is a member of the Greenhght Steering Committee, which sent the message that the public should be allowed to vote. Mayor Bromberg stated that the City Council has not voted to allow the project to go forward, the developer has only been given the opportunity to prepare environmental documents. He can't understand why anyone wouldn't want to allow the people to vote on the project, particularly with an EIR being prepared and the facts being presented. He added that the general plan update process is an overview of the entire City and not focused on any one project. Geoffrey Davis stated that he's convinced that the Sutherland Talla project will be good for the neighborhood. He expressed his support for the project and stated that a small, deluxe hotel and restaurant on the site will bring added encouragement for the young families in the area that are building their permanent homes. Mr. Davis stated that paving a parking lot and creating another beach will only bring more undesirable visitors to the peninsula and have a negative impact on the City's revenue. He stated that hotels such as the one being proposed by Sutherland Talla, can be the crown jewel of the neighborhood and could add measurably to the quality of life on the peninsula. Baron Bernard, Bernard Hotel, stated that he has provided development consulting services to hotel developers, and assisted owners and lenders in turning around bankrupt hotels. He stated that an updated development analysis, with current market information, has not been prepared for the revised proposal submitted by Sutherland Talla, and would not render a positive opinion in the area's overbuilt hotel market. He suggested that the City Council question the appropriateness of proceeding with the proposal without undertaking a new feasibility Volume 55 - Page 672 City of Newport Beach City Council Minutes February 25, 2003 INDEX: study that takes into account the change in the market since the previous study was done. Additionally, Mr. Bernard stated that the "Regent" brand is not known in the United States. He asked the City Council to consider the possibility of owning a failing hotel property. Steve Sutherland, Sutherland Talla Hospitality, stated that he has more faith in the economy recovering than Mr. Bernard. He additionally noted that there have only been a few additional hotel rooms opened in Newport Beach in the past several years. Mr. Sutherland stated that Regent is co -owned by Carlson Companies, which also owns Radisson Hotels, and Four Seasons Hotels & Resorts. He stated that Mr. Hyans believes that the site should remain as a mobilehome park, which only benefits a small number of fulltime residents. He pointed out that Mr. Hyans is a real estate broker and lists the site as one of the City's best kept secrets. Mr. Sutherland stated that he feels strongly that the project should be decided by the voters and he agrees with the recommendations of the ad hoc committee. Steve Barnard asked exactly what a vote of the people would mean and if there would be an opportunity to discuss other alternatives. City Attorney Burnham stated that the vote would be either to amend the general plan and designate the site for a hotel, or to have the designation of the site remain as recreational, environmental open space. He noted that the EIR would evaluate several uses for the site. Larry Porter stated that the public has already voted and they have said that they do not want a hotel on the site. He stated that it would be a waste of time to put the matter before the voters. Mayor Bromberg stated that approximately 800 to 900 people attended the two visioning festivals, as a part of the general plan update process. He noted that in the November 2002 election, 28,000 people voted and in the November 2000 election, 38,000 people voted. He stated that this represents fair representation. William Darling stated that the project makes sense financially. He stated that it's a good project and the people should be allowed to vote. Steve Dobbie stated that he supports the project. He stated that a boutique, resort hotel of the size, character and density proposed would be a great asset to the City and he supports it going to a vote of the people. Dolores Otting asked if the EIR would go out with the sample ballots and stated that it is important to consider how the project will be presented to the voters. She noted an article in the Orange County Register that discussed the slowdown of the hotel boom in Orange County. She also expressed her concern for alcohol being served at the hotel with an elementary school across the street, the traffic congestion that will be created by the hotel and the outlook for the economy. Mayor Bromberg stated that the EIR would be too large to go out with the sample ballots but it will be reviewed by the City and EQAC, and the Volume 55 - Page 673 City of Newport Beach City Council Minutes February 25, 2003 INDEX information will be made public. Jan Vandersloot stated that the best use of the land is as it is currently zoned, which is recreational, environmental open space. He stated that the vote should be whether the current designation should be retained. He expressed his concern for giving public land to a private individual, and noted that the biggest hurdle for preserving environmentally sensitive land is the acquisition of the land. Dr. Vandersloot stated that a park would be utilized by residents of the community, that the site provides one of the last remaining views of the bay and that, through the general plan update process, the public has indicated that they do not want a hotel on the site. He expressed his understanding that permanent residential structures are not allowed on tidelands, but asked if a hotel isn't also considered a permanent residential structure. City Attorney Burnham stated that the tidelands trust requires that tidelands be used for purposes of commerce, fishing or navigation, and that a hotel would be permitted as a commerce use. Craig Bally stated that the project is a City -wide issue. He expressed his support for having the voters decide. Carol Martin stated that she does not support the project because it is not in the best interest of the community. She stated that Las Arenas is the only location in the City where children's sailing lessons are provided, and the growth in the schools will mean an increase in participation. Ms. Martin stated that the hotel's success is a gamble, but the value of a public bay and beach is proven. Mayor Bromberg stated that the City Council is not making a decision on whether the project should be approved. It is only deciding if the issue should go to a vote of the people. Mayor Pro Tom Ridgeway noted that the sailing program will remain, if the proposed hotel is developed. Don Donaldson stated that Sutherland Talla had the option to develop the site from 151h Street to 18th Street, which included the American Legion property. The interest in the American Legion property was released, and it provided the opportunity for the City and the American Legion to negotiate a lease. He thanked those involved for making this possible. Mr. Donaldson noted that although the Central Newport Beach Community Association meets at the American Legion property, the American Legion doesn't necessarily endorse their opinions. Martha Henderson stated that Sutherland Talla will develop a hotel with class. She expressed her support for the project. Council Member Heffernan stated that when he supported Sutherland Talla proceeding with an EIR,it was with the understanding that the exclusive right to negotiate had already been approved and he felt that it was appropriate to allow Sutherland Talla to proceed. He stated that because the project has changed, the EIR has not been done yet. City Volume 55 - Page 674 City of Newport Beach City Council Minutes February 25, 2003 INDEX Attorney Burnham confirmed that the extensions were authorized in the agreement and were needed due to revisions in the site plan. Assistant City Manager Wood stated that the action by the City Council initiated the general plan amendment and planned community development plan, which required Sutherland Talla to submit planning documents and the economic study. Council Member Heffernan confirmed with City Attorney Burnham that Sutherland Talla has complied with its requirements. Council Member Heffernan stated that if project is approved, a ground lease will need to be negotiated and a relocation of the existing tenants will need to occur. He asked if the voters will be made aware of the expected costs of relocation and the details of the ground lease. City Attorney Burnham stated that those decisions would be up to the City Council if the hotel is approved but suggested that the process might include the appointment of an ad hoc committee, which could prepare a memorandum of agreement prior to the vote to provide a clearer picture as to what would happen environmentally and financially if the hotel is approved. Council Member Nichols stated that the proposed hotel should be considered in the general plan update process and not be singled out for a vote by the people, which will not give the project adequate debate. Mayor Bromberg stated that the use of the site has been an issue for several years and has generated quite a bit of spirited discussion. He stated that it would be optimum to let the electorate make the decision. Council Member Nichols stated that he's not opposed to a vote, but believes that it should be for retaining the current designation on the site and not for the hotel. City Attorney Burnham stated that the sample ballot can include a statement on what the effects of the vote would be and what the environmental documents concluded. He believes that voters will have a clear understanding of what their vote will mean. Motion by Mayor Pro Tern Ridgewav to direct the City Attorney to prepare amendments to the existing STH Agreement that would confirm that the City will prepare an EIR for the project; and establish a process whereby the project would be submitted to the voters in November 2004 after the EIR is certified, and any related reports are reviewed by the City Council; and approve, solely for the purposes of CEQA compliance, the proposed site plan (110 room hotel/resort and marina) as the "final project description ". Council Member Webb asked if the environmental documents would include the relocation study. City Attorney Burnham stated that an analysis of the impacts associated with a change in use at the site would be included, but not take the place of the relocation report. Council Member Webb stated that he agrees with having the information provided in the environmental documents. He stated that the citizens in the City have spoken fairly clearly that they don't support a hotel at the site, but they should have all the information before them prior to casting their vote. Volume 55 - Page 675 City of Newport Beach City Council Minutes February 25, 2003 Council Member Heffernan asked for a clarification of exactly what the voters would be voting on. City Attorney Burnham stated that the City Council will determine the language that will appear on the ballot and that this would occur when the election is called. He added that the language would need to include the details of the proposed hotel project and the change in land use. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Mayor Bromberg Noes: Nichols Abstain: None Absent: None Q. MOTION FOR RECONSIDERATION - None. R. ADJOURNMENT - at 12:20 a.rrL in memory of Bob Goldin. The agenda for the Regular Meeting was posted on February 19, 2003, at 3:00 pan. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 55 - Page 676 INDEX