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Home My WebLink About0 - Regular Meeting AgendaCITY COUNCIL AGENDA CITY OF NEWPORT BEACH COUNCIL CHAMBERS - 3300 NEWPORT BLVD. Tuesday, March 25, 2003 Regular Council Meeting - 7:00 p.m. STEVEN BROMBERG MAYOR TOD W. RIDGEWAY GARY ADAMS Mayor Pro Tern GARY L. PROCTOR Council Member DON WEBB Council Member Council Member RICHARD A. NICHOLS Council Member JOHN HEFFERNAN Council Member HOMER BLUDAU - City Manager, ROBERT BURNHAM - City Attorney, LAVONNE HARKLESS - City Clerk, STEPHEN G. BADUM - Director of Public Works, SHARON Z. WOOD - Assistant City Manager. NOTICE TO THE PUBLIC If you would like to address the City Council on a scheduled agenda item, please complete the yellow SPEAKER'S CARD. The cards are available in the lobby of the Council Chambers. Please identify on the card your name and the item on which you would like to speak and place it in the box at the podium when you address the Council. The SPEAKER'S CARD assists the :Mayor in ensuring that all persons wishing to address the Council are recognized and your name is recorded correctly in the official records. PUBLIC HEARING: If in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing. This agenda was prepared by the City Clerk and staff reports are available at the City Clerk's Office. Staff reports or other written documentation have been prepared or organized with respect to each item of business listed on the agenda. Regular meetings of the City Council are held on the second and fourth Tuesdays of each month at 7:00 p.m. If you have any questions or require copies of any of the staff reports or other documentation regarding any item of business on the agenda, please contact City Clerk staff at (949) 644 -3005. The agendas, minutes and staff reports are also available on the City's web site. The address is: http://www.city.newport- beach.ca.us/ It is the intention of the City of Newport Beach to comply with the Americans With Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the City of Newport Beach will attempt to accommodate you in every reasonable manner. Please contact LaVonne Harkless, City Clerk, at least 72 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. NEWPORT BEACH CITY COUNCIL AGENDA COUNCIL CHAMBERS - 3300 NEWPORT BOULEVARD March 25, 2003 STUDY SESSION - 4:00 p.m CLOSED SESSION - [Refer to separate agenda from City Attorney] RECESS A. RECONVENE AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL C. CLOSED SESSION REPORT (if applicable) D. PLEDGE OF ALLEGIANCE E. INVOCATION - Jim de Boom, Executive Director, Newport Mesa Irvine Interfaith Council F. PRESENTATION Presentation by the National Committee for Employer Support of the Guard and Reserve (contd. from 2 /25/03 & 3/11/03) Film Festival - Greg Schwenk Relay for Life - Peggy Fort G. NOTICE TO THE PUBLIC If you wish to address the Council, please (ill out the yellow sign -in card and place it in the box at the podium. H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION ACTION OR REPORT (NON- DISCUSSION ITEM): 1 TESTIMONY GIVEN BEFORE THE CITY COUNCIL IS TAPE RECORDED. SPEAKER MUST LIMIT REMARKS TO 5 MINUTES ON AGENDA ITEMS RED LIGHT WILL SIGNIFY WHEN 5 MINUTES ARE UP; YELLOW LIGHT MEANS SPEAKER HAS 1 MINUTE FOR SUMMATION. I. CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under CONSENT CALENDAR (1- 17) are considered by the Council to be routine and will all be enacted by one motion in the form listed below. Tlie City Council Members have received detailed staff reports on each of the items recommending on action. There will be no separate discussion of these items prior to the time the Council rotes on the motion unless members of the Council, stuff or the public request specific items to be discussed and /or removed from the Consent Calendar for separate action. Members of the public who wish to discuss a Consent Calendar item should come forward to the lectern upon incitation by the Mayor, state their name and Consent Calendar Item number, and place the sign -in card in the box provided of the podium. READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF MARCH 11, 2003. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. RESOLUTION FOR ADOPTION ADOPT RESOLUTION FOR STREET SWEEPING ON COLTON STREET. 1) Adopt Resolution No. 2003 -_ establishing NO PARKING restrictions for street sweeping on Monday from 8:30 a.m. to 12:30 p.m. on Colton Street in West Newport from Seashore Drive to Ocean Front; and on Tuesday from 9:30 a.m. to 12:30 p.m. on the east side of Colton Street from Coast Highway to the northerly end of street; and on Wednesday from 9:30 a.m. to 12:30 p.m. on the west side of Colton Street from Newport Shores Drive to northerly end of street; and 2) rescind Resolution No. 2003 -04. 4. SALE OF BONDS FOR UNDERGROUND ASSESSMENT DISTRICT NO. 70 BAYSHORES. 1) Adopt Resolution No. 2003 which sets forth the terms and conditions for the sale of bonds and approves the Purchase Agreement submitted by the designated underwriter for Assessment District No. 70; and 2) approve a budget amendment (BA -058) adjusting revenue estimates in Account No. 400 -6970 in the amount of $$1,463,310 to reflect contributions from property owners and the sale of bonds and increase expenditure appropriations in the amount of $1,399,310 in Account No. 7301- C5200483 to accommodate contributions costs. 5. RESOLUTION AMENDING MEMBERSHIP PROVISIONS OF THE ENVIRONMENTAL QUALITY AFFAIRS COMMITTEE (EQAC). Adopt Resolution No. 2003 -_ amending membership provisions of EQAC. CONTRACTS AND AGREEMENTS 6. BONITA CREEK, GRANT HOWALD, CHANNEL PLACE, AND SAN MIGUEL PARKS - APPROVAL OF PLAYGROUND EQUIPMENT PURCHASE (contd. SPEAKERS MUST LIMIT REMARKS TO 5 MINUTES ON AGENDA ITEMS from 3/11/03). 1) Approve the purchase of new and replacement playground equipment from Coast Recreation. Inc. for Bonita Creek Park, Grant Howald Park, and San Miguel Park for a total contract price of $88,086; and 2) approve the purchase of replacement playground equipment from Pacific Design. Inc. for Channel Place Park for a total contract price of $22,921. 7. APPROVAL OF GRANT AGREEMENT BETWEEN CALIFORNIA STATE LIBRARY AND THE CITY OF NEWPORT BEACH. Approve the Grant Agreement between the California State Library and the City of Newport Beach and authorize the Mayor and the City Clerk to execute the Agreement. 8. NEWPORT TERRACE LANDFILL GAS ISSUE. 1) Approve the Cooperation and Cost Sharing Agreement for the preliminary investigation of the Newport Terrace Landfill site; 2) approve a budget amendment (BA -054) for $75,595 for the City's share of the system investigation, and future legal assistance and landfill engineering expertise, related to the Newport Terrace Landfill site; and 3) approve the Professional Services Agreement with SCS Engineering and the City. 9. TEMPORARY EMPLOYMENT AGREEMENT WITH RON GARRETT. 1) Approve a temporary employment agreement with Ron Garrett in the amount of $15.000 and authorize the City Manager to execute the Agreement; and 2) approve a budget amendment (BA -055) to transfer $15.000 from Account No. 5200 -7000 (Salaries- Misc.) to Account No. 5200 -7020 (Part -Time Salaries). 10. CORONA DEL MAR COMMUNITY YOUTH CENTER DRAINAGE (C -3505) - COMPLETION AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion: 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code: and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 11. MEMORANDUM OF UNDERSTANDING (MOU) WITH MARINE SAFETY OFFICERS ASSOCIATION. Approve and authorize the Mayor and City Clerk to execute the VIOL'. 12. AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH GAIL PICKART. 1) Approve Amendment No. 1 to On -Call Engineering Services Agreement and authorize the Mayor and the City Clerk to execute the Amendment; and 2) approve a budget amendment (BA -059) transferring $20,000 from Account No. 5200 -7000 (Salaries - Misc.) to Account No. 5200 -8080 (Professional & Technical Services). 13. GENERAL PLAN VISION STATEMENT. Endorse the General Plan Vision Statement. MISCELLANEOUS ACTION 14. BUDGET AMENDMENT - TENNIS RESERVE ACCOUNT. Approve a budget amendment (BA -060) to transfer funds in the amount of $14,263 from Tennis Reserve account 010 -3142 and appropriate $12,660 to expenditure account 4330 -8080 and $1,603 to account 4330 -8200 to permit the enhancement of the City's recreational programs. 3 SPEAKERS MUST LIMIT REMARKS TO 5 MINUTES ON AGENDA ITEMS 15. BUDGET AMENDMENT TO ACCEPT A CHECK FROM CALIFORNIA STATE LIBRARY AND APPROPRIATE FUNDS FOR LITERACY SERVICES. Approve a budget amendment (BA -056) in the amount of $11,856. 16. GOVERNOR'S OFFICE OF CRIMINAL JUSTICE PLANNING GRANT AWARD "EVERY 15 MINUTES - SUBSTANCE ABUSE PROGRAM ". 1) Approve acceptance of $23,492 grant from the State of California Governor's Office of Criminal Justice Planning (OCJP A301); and 2) approve a budget amendment (BA -057) increasing expenditure appropriations by $26,102 in the Police Substance Abuse program account 1850 -9019. This proposed expenditure would be offset by increased grant revenue estimates of $23,492 in account 1820 -4869, while the remaining $2,610 (required City matching funds) will be funded from the Police Department Narcotics Asset Forfeiture Fund in account 1210 -9300. 17. 813 EAST BALBOA AVENUE - GENERAL PLAN AMENDMENT INITIATION NO. 2003 -002 (PA2003 -050) - REQUEST TO INITIATE A GENERAL PLAN AMENDMENT AND AN AMENDMENT TO THE LOCAL COASTAL PROGRAM TO CHANGE THE LAND USE DESIGNATION ON A SINGLE LOT FROM RETAIL AND SERVICE COMMERCIAL TO TWO FAMILY RESIDENTIAL. Approve the proposed General Plan Amendment and Local Coastal Program Amendment initiation request. ACTION: MOVE AFFIRMATIVE ACTION OF THE CONSENT CALENDAR, EXCEPT FOR THOSE ITEMS REMOVED. J. ITEMS REMOVED FROM THE CONSENT CALENDAR K. PUBLIC COMMENTS Public Comments ore incited on non - agenda items generally considered to be within the subject mutter jurisdiction of the Council -- Speakers must limit comments to 3- minutes. Before speoking, please state your name for the record. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Status report -Ad Hoc General Plan Update Committee (GPUC) Status report - Local Coastal Program Certification Committee Status report - Newport Coast Advisory Committee M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 18. PLANNING COMMISSION AGENDA FOR MARCH 20, 2003 [Meeting cancelled). 4 SPEAKERS MUST LIMIT REMARKS TO 5 MINUTES ON AGENDA ITEMS N. In PUBLIC HEARING 19. CODE AMENDMENT CA 2002 -007 - LANDMARK BUILDINGS (PA 2002 -218) - AMENDMENT TO TITLE 20 OF THE NBMC TO DESIGNATE CERTAIN TYPES OF BUILDINGS AS "LANDMARK BUILDINGS" AND MODIFY RESTRICTIONS ON THE USES IN LANDMARK BUILDINGS (contd. from 2/11/03 & 3/11/03). Action: 1) Conduct public hearing; and 2) Introduce Ordinance \o. 2003 -_ approving Code Amendment CA 2002 -007 and pass to second reading on April 8, 2003. 20. BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT RENEWAL. Action: 1) Conduct public hearing regarding the renewal of the Balboa Village Business Improvement District: and 2) a. If protests represent less than 50 percent of the total assessment amount adopt Resolution No. 2003 - confirming the levying of the BID assessment for the 2003 fiscal year. OR b. If protests represent 50 percent or more of the total assessment abandon the proceedings to renew the District. 21. REFILLING OF VACANCY ON THE GENERAL PLAN ADVISORY COMMITTEE. Action: 1) Approve the GPUC's recommendation for filling the vacancy on GPAC to represent "Older Commercial Areas ": and 2) Adopt Resolution No. 2003 adopting an attendance policy for GPAC. 22. APPOINTMENTS BY THE CITY COUNCIL TO ENVIRONMENTAL QUALITY AFFAIRS CITIZENS ADVISORY COMMITTEE AND THE AVIATION COMMITTEE (contd. from 3/11/03). Action: Confirm the appointments to the Environmental Quality Affairs Citizens Advisory Committee and the Aviation Committee, as announced by each Council :Member. Environmental Quality Affairs Citizens Affairs Committee (District 3) Council Member Webb's appointment of (regular member), (District 4) Council Member Adams' appointment of (regular member). (District 5) Mayor Bromberg's appointment of (regular member). 5 SPEAKERS MUST LIMIT REMARKS TO 5 MINUTES ON AGENDA ITEMS. (District 6) Council Member Nichols' appointment of and (at -large member). Aviation Committee (District 1) Mayor Pro Tem Ridgeway's appointment of (alternate). (District 3) Council Member Webb's appointment of (alternate). (District 4) Council Member Adams' appointment of (alternate). (District 6) Council Member Nichols' appointment of (alternate). P. MOTION FOR RECONSIDERATION A motion to reconsider the cote on any action taken by the City Council at either this meeting or the precious meeting may be made only by one of the Council members who toted with the prevailing side. Q. ADJOURNMENT Ft SPEAKERS MUST LIMIT REMARKS TO 5 MINUTES ON AGENDA ITEMS City Council Meeting March 25, 2003 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session RAFT March 11, 2003 - 4:00 p.m. INDEX ROLL CALL Present: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Nichols stated that a restaurant in Corona del Mar was recently approved by the Planning Commission. He asked for an update on the status of the restaurant. Assistant City Manager Wood stated that the restaurant was not on the agenda of the Planning Commission meeting of March 6, 2003, but that she would check the prior agenda and be prepared to present the information at the regular meeting. Mayor Pro Tern Ridgeway asked for a clarification on the action being recommended in Item No. 14, Approval of Professional Services Agreements for Design Services for Playground Equipment. He explained that it appears that the actual purchase of the equipment is being recommended and not just the design services. City Manager Bludau stated that he was planning to continue the item at the regular meeting and confirmed that the action was not just for design services. Council Member Proctor stated that the staff report for Item No. 3, Establishment of the City Council Economic Advisory Committee, did not provide adequate information. Mayor Bromberg stated that he was planning to pull the item from the Consent Calendar at the regular meeting for discussion and report. Council Member Proctor asked that the report include information on what other jurisdictions have such committees. In reference to Item No. 21, Marinapark Resort Project, Council Member Heffernan asked if an appraisal had been conducted for the site, if an offer of a ground rent payment was a part of the earlier negotiations with Sutherland Talla Hospitality, and what the current ground rent is that's being paid by the mobile home tenants. In reference to Item No. 14, Approval of Professional Services Agreements for Design Services for Playground Equipment, Council Member :Nichols stated that the playground equipment at Grant Howald Park has already been installed. Recreation Superintendent McGuire explained that the first phase of the playground equipment has been installed, but that the second phase would provide playground equipment for the tiny tots and is the subject of the agenda item. Volume 56 - Page 1 City of Newport Beach Study Session Minutes March 11, 2003 2. PRESENTATION BY SUPPORTERS OF THE ORANGE COAST RIVER PARK. Nancy Gardner, Orange Coast River Park Committee, thanked the City Council for the opportunity to make a presentation on how the Orange Coast River Park (OCRP) can enhance the value of the community. She stated that the park can provide a nearby alternative for getting away from urban life. Ms. Gardner introduced Lena Hayashi. Using a PowerPoint presentation, Ms. Hayashi stated that the OCRP is a proposal of the Friends of the Harbors, Beaches & Parks (FHBP). She thanked the cities of Costa Mesa, Huntington Beach and Newport Beach, the County of Orange, the California State Coastal Conservancy, and the Friends of Harbors, Beaches & Parks members and donors for their assistance in creating the proposal. She stated that the FHBP is a nonprofit corporation, established in 1997, whose mission is to preserve, enhance and expand parks, trails, open space and coastal recreation facilities in Orange County. Ms. Hayashi stated that the proposal is for a 1,000 -acre park in the heart of the densely urbanized central coastal area of Orange County, along the Santa Ana River. She displayed an aerial photo of the area. Ms. Hayashi stated that most of the land is publicly owned and intended for open space purposes, and that she would be displaying a series of maps showing the proposed area. The northern end of the park is currently Fairview Park in Costa Mesa and a master park plan is being finalized. To the south of that is an area along the Santa Ana River with two bike trails, one on either side of the river. Ms. Hayashi stated that the next area is the Talbert Preserve South, which is owned by the County and was restored to native habitat in the 1980's. The second restoration phase was stopped due to the County bankruptcy in 1994. She stated that it is hoped that this project will be completed, and that it includes the site for the proposed bioremediation ponds, which could improve the water quality in the area. Ms. Hayashi continued displaying maps and photos of the proposed area for the park and stated that the southern portion includes the Banning Ranch area, which is privately owned by a group of oil companies. She stated that the Sierra Club's Banning Ranch Park & Preserve Task Force is attempting to get an assessment of the land, so that they can purchase it and include it in the OCRP. She additionally noted an area in the southern portion of the proposed park that has recently undergone a salt water marsh restoration by the U. S. Army Corps of Engineers, but is currently inaccessible. Ms. Hayashi stated that the area up the coast consists of approximately 150 acres of historic wetlands and that the Huntington Beach Wetlands Conservancy is making great progress in acquiring the lands. The conservancy will then restore the area, as they have already done in the Talbert Marsh area. Ms. Hayashi displayed a map of Sunset View Park, owned by the City of Newport Beach, and stated that it will provide a staging area for entrance into the OCRP. She acknowledged the success of obtaining the CalTrans West, or Sunset Ridge, land for park use. Ms. Hayashi stated that the goals of the OCRP include restoring the historic ecological staircase, to extend a seamless passageway to the coast for inlanders and to create an oasis of tranquility for residents and visitors. She stated that the ecological staircase consists of the surf zone, the beach, the dunes, the intertidal river, the marshes, the willow forest, the grassland and scrub, the Volume 56 - Page 2 INDEX Park (62) Coast River City of Newport Beach Study Session Minutes March 11, 2003 riparian and the vernal pools. She stated that the area has varied habitat and the opportunity to restore it should not be missed. Additionally, the opportunity for public access would be priceless. Ms. Hayashi displayed a map showing the access points from the major streets to the park and the staging areas, which would include parking and restrooms. She stated that some of these are already in place. She additionally pointed out the locations where park access is constrained. She stated that the purpose of the OCRP Committee is to provide continuity for the open space designations and restorations that are taking place. She displayed photos, which showed what the area could look like. She stated that some of the many benefits of the OCRP include greater public access and visitor enjoyment, and enhanced flora and fauna. She stated that studies have shown that isolated parks do not have the habitat value of a larger piece of land. She listed some of the other benefits of the OCRP concept. Ms. Hayashi stated that the cost of the park, who would pay for it and how long it would take to complete are remaining issues. She stated that the park could cost $20 to $100 million, with each agency sharing in the cost of ownership and management. She noted that State and Federal grants would likely pay for most of the cost, and that much of the park is already underway with the Fairview Park and Talbert Preserve already in place, and the progress mentioned earlier of the Huntington Beach Wetlands Conservancy. Ms. Hayashi stated that the initial purpose of the OCRP Committee has been accomplished. Ideas were presented and feedback was received, and the plan document was finalized and submitted for preliminary approval to the agencies involved. She stated that the OCRP Committee will now work on obtaining the commitment of a contact person from the three cities and the County, and move forward with the concept plan. Ms. Gardner noted that the contact person will help with communication and provide for a group effort as the bond funds are sought. Ms. Hayashi stated that the basic premise of the OCRP is for the agencies to retain ownership and authority of their own parks, but to work in partnership for management of the OCRP. Mayor Bromberg noted that it's an interesting concept to develop a park that borders three cities. Mayor Pro Tem Ridgeway asked if the City's plan for an active park at the CalTrans West site is inconsistent with the OCRP plans. Nls. Gardner stated that it is not and supports the concept of having consistent management of the entire area. Mayor Pro Tem Ridgeway confirmed with City Attorney Burnham that giving money to the FHBP doesn't impair his ability to discuss the issue at the current meeting. Mayor Bromberg stated that he's a member of the FHBP. City Attorney Burnham confirmed that he is not on the Board of Directors and stated that he is also not impaired from discussing the issue. :Mayor Pro Tem Ridgeway stated that approximately two - thirds of the Banning Ranch area is expected to be dedicated to open space. He stated that money could be saved by not trying to purchase the land and, instead, trying to work Volume 56 - Page 3 City of Newport Beach Study Session Minutes March 11, 2003 through the process. Ms. Gardner stated that they are more concerned about the wetlands and the bluffs and not so much the mesa, although they would prefer the entire area to be a part of the OCRP. Ms. Gardner stated that they are expecting to open the communication channels with the developer again. Mayor Pro Tern Ridgeway encouraged it and acknowledged those involved with the OCRP concept. Mayor Bromberg asked Ms. Gardner for her expectations from the City of Newport Beach, other than the commitment of a contact person. Ms. Gardner stated that the City has already given money, but that any kind of endorsement of the project and participation in the grant process would be appreciated. Mayor Pro Tem Ridgeway suggested that the City Manager designate a contact person from the City. City Manager Bludau confirmed that the City Council agrees to the concept of the OCRP. Ms. Gardner stated that the next step will be to get the master plan finalized. City Manager Bludau confirmed with Ms. Gardner that her committee already has someone who is working on the grants. Council Member Proctor stated that he owns property in the area and asked for a clarification on his participation. City Attorney Burnham stated that since it is only the concept that is being discussed, his participation is not a problem. Council Member Proctor stated that he supports the concept of the OCRP. Council Member Webb asked if an active park could be included in the plans for the Banning Ranch area. Ms. Gardner stated that compromises will be expected along the way and that it is possible. Mayor Pro Tern Ridgeway reminded Ms. Gardner that active parks need parking, and that parking is also needed for the OCRP. Philip Bettencourt, on behalf of the Banning Ranch property owners, stated that the Banning Ranch entitlement process has been on hold but that the existing plan does set aside approximately 200 acres, or half of the area, for open space and habitat restoration. He stated that there is agreement on the trail network on the bluff face, the protection of the two arroyos and the restoration of the wetlands. Mr. Bettencourt stated that having the FHBP involved in the planning process is supported, but that the rights of the property owners must also be remembered. He concluded his comments by stating that they want to work together with the FHBP. Tom Billings acknowledged the efforts of those involved with the OCRP and hoped that the plans would continue to move forward. Mayor Pro Tern Ridgeway stated that the City has sixteen oil wells in the area and due to the revenue generated, will do everything to protect the asset. RECENT MUNICIPAL ELECTION — CONSIDERATION OF NEW ELECTION REGULATIONS. City Attorney Burnham stated that staff has attempted to provide some concepts for consideration in response to the issues that arose before and during Volume 56 - Page 4 INDEX Election Regulations (39) City of Newport Beach Study Session Minutes March 11, 2003 INDEX the recent municipal election. He stated that the concepts were derived during discussions with Council Member Heffernan and Special Elections Counsel Dana Reed. He stated that in developing and proposing the concepts, two principles guided the discussions. These included addressing the issues that seemed to be relevant to the municipal campaign in a meaningful way and presenting concepts that are consistent with, and permitted by, recent court rulings related to campaign regulations. As a summarization of the concepts, City Attorney Burnham stated that the first concept would require that candidates personally approve the text of mass communications that would be intended to influence voters. The second proposal is to expand the City's current regulations that require candidates to file mass mailings with the City Clerk, to also file the text of phone conversations and media spots. City Attorney Burnham stated that the third proposal is to modify current City regulations to make it clear that the $500 campaign contribution limit applies to everyone, including those functioning as intermediaries. The fourth recommendation is to consider auditing all candidate and committee campaign finances, receipts and expenditures. City Attorney Burnham stated that two other concepts deal with the disclosure of campaign solicitations and personal services provided by persons that were applicants for, or would benefit from, contracts or grants. The final, and seventh, suggestion is to require that candidates and treasurers undergo mandatory training to ensure that they know the laws and legal requirements. Council Member Adams asked if the second concept to expand the filing of publications and communication with the City Clerk would include the content of websites and e- mails. City Attorney Burnham stated that since a website would be accessible by everyone, there would probably not be the need to disclose the content of the information. Council Member Adams stated that by not including website content in the filing requirements, an opponent would have to monitor the various websites instead of relying on a single source. City Attorney Burnham clarified that mass e- mailing would be included in the requirements and the concept of including website information could also be considered. Council Member Adams asked how the materials that are disseminated on behalf of a candidate without the candidate's knowledge would be handled. City Attorney Burnham stated that the candidate would not be responsible for submitting such information to the City Clerk. Council Member Adams asked if the current regulations address unofficial campaigning, such as someone posting signs on behalf of a candidate without their knowledge or participation. Mr. Reed stated that if it's an expenditure of $1000 or more in any calendar year, it would have to be reported by the person making the expenditure. Council Member Adams explained that he's concerned about people finding ways around the rules and conducting independent campaign activities that wouldn't be reportable or fall under any of the regulations. City Attorney Burnham agreed and Mr. Reed added that independent expenditures are proliferating in virtually every jurisdiction that has contribution limits. Mr. Reed pointed out that it is reportable if the cumulative amount reaches $1000 in any calendar year. Council Member Webb asked if this would require the contributor to register with the Secretary of State and the City Clerk. Mr. Reed stated that registering with the Secretary of State is only required of recipient committees, which are Volume 56 - Page 5 City of Newport Beach Study Session Minutes March 11, 2003 INDEX those that raise money from third parties to make political contributions. He added that a recipient committee does have to file Form 461, the major donor form. Mayor Bromberg asked how unauthorized expenditures are handled. Mr. Reed stated that the first concept presented by City Attorney Burnham would require a candidate to personally approve the messages being sent out by that candidate's controlled committee. It is not expected that a candidate would have any control over what third parties do for, or against, his or her campaign. City Attorney Burnham noted that there will always be ways for people who are interested in influencing the outcome of an election to work outside the scope of the regulations. Council Member Proctor asked for additional clarification on the concept that would require applicants for grants or contracts to disclose the identity of campaign contribution solicitors. Mr. Reed stated that existing State law currently requires this of appointed officials and that staff is recommending that the same requirement be considered for elected officials. Council Member Proctor asked for further explanation of the concept. City Attorney Burnham explained that the disclosure would be made at the time that the City Council would be considering a grant or contract, and only if the solicitor would be benefiting from the grant or contract. Council Member Heffernan stated that he could provide an example from the recent campaign and noted the firefighters union that provided funding for City Council candidates. He asked if those council members would have to abstain from voting on the firefighters' contract when it was presented to the City Council. City Attorney Burnham stated that there could be a requirement that distinguishes disclosure from recusal. Additionally, he stated that there could possibly be a requirement for disclosure of solicitations by the person who benefits by the action of the City Council. Council Member Heffernan confirmed that the regulation being presented for consideration would be for disclosure only. City Attorney Burnham pointed out that a contribution of $500, or less, does not create the appearance of a conflict of interest and would, therefore, not justify a recusal. Council Member Nichols asked for a clarification on when a person is considered an intermediary. Mr. Reed stated that there is little experience among the jurisdictions with regard to implementing contribution limits on intermediaries. He noted that the City of Los Angeles felt that they had a problem with people who are active in political campaigns and then, later, try to influence the action of the person they helped to elect. Mr. Reed stated that after years of study, the City of Los Angeles will be implementing a regulation that will require such persons to disclose their activity to the elected official. He stated that in some instances, there will also be a requirement for the elected official not to participate in the matter. Council Member Webb asked if a solicitor were later to be competing with others for a grant and staff recommended that the grant be awarded to the solicitor, if particular council members would have to recuse themselves. Mr. Reed stated that the City of Los Angeles ordinance does not apply when the competitive bidding process has been used. Council Member Webb stated that it might not Volume 56 - Page 6 City of Newport Beach Study Session Minutes March 11, 2003 INDEX necessarily be through competitive bidding, that it might be staff making an evaluation and a recommendation to the City Council. City Attorney Burnham stated that the City of Los Angeles has established a threshold for when disclosure or recusal would apply. He added that the concept would apply to individuals who have acted as intermediaries or who have actively solicited contributions, and not to those who have just made contributions themselves. Mayor Pro Tem Ridgeway stated that the Levine Bill already seems to address the issue. Mr. Reed stated that the Levine Bill is a part of the Political Reform Act (PRA) and applies to public officials who are in appointed positions. Specifically, such officials may not participate in matters where a contributor of more than $250 in any calendar year is a party or participant. He, additionally, noted that a participant is considered anyone who is involved in the project itself and that the contribution total is cumulative. Mayor Pro Tem Ridgeway confirmed with City Attorney Burnham that elected officials have a broader spectrum of people they can receive contributions from due to the first amendment. Mayor Pro Tem Ridgeway asked for a clarification of the second concept. City Attorney Burnham stated that the filing of communications would be expanded to include more than just mailings and that it would be required contemporaneously with the distribution, rather than within two hours. Mr. Reed stated that websites are difficult to include in the requirement because they are accessible to the public 24 hours a day. Council Member Adams stated that the content of a website can be changed at any time and shouldn't be dismissed. Mr. Reed stated that it could be included if that is the direction of the City Council. City Attorney Burnham agreed that it could be looked at. Council Member Adams stated it should be included since an opposing candidate can't be expected to monitor a website 24 hours a day. Council Member Nichols asked for a clarification on the proposal to limit contributions made by intermediaries. City Attorney Burnham stated that the proposal is not to change the City's current limit of $500, but to make it clear that an intermediary could not make a contribution of more than $500. For example, two people could make direct contributions of $500 each to a candidate, but they could not make the contribution to an intermediary who would then be making a contribution of $1000 to the candidate. City Attorney Burnham added that this does not prohibit solicitation of contributions. Mr. Reed stated that a person becomes an intermediary when he or she receives contributions from a third party and co- mingles it with his or her own funds to make a contribution to a candidate. Council Member :Nichols confirmed that intermediaries are currently allowed to make contributions above the campaign limits by State law. City Attorney Burnham stated that State law does not address municipal campaign contribution limits and staff is suggesting that the City Council consider a modification to the City's regulations to prohibit any individual from contributing more than $500 to a candidate. Council Member Nichols provided an example of a husband and wife contributing 51000 to a candidate. Mr. Reed stated that if both parties signed the check, it would be permitted. Council Member Heffernan referred to the proposal to require filing of communications with the City Clerk concurrently with distribution, and asked how distributions that occur during nonbusiness hours would be handled. Volume 56 - Page 7 City of Newport Beach Study Session Minutes March 11, 2003 INDEX Mr. Reed stated that requiring disclosure prior to distribution is prohibited and, therefore, the City Clerk would need to provide a location for drop -offs of such communications. City Attorney Burnham added that it would be prohibited to disallow the distribution of the communication if the City Clerk's office is not open. Council Member Heffernan stated that the proposal wouldn't work in "leveling the playing field" since opponents would not be able to view the information until the City Clerk's office reopened. Mr. Reed suggested that using the internet for disclosure could also be considered. Mayor Pro Tem Ridgeway stated that it would be impossible to level the playing field. The filing of the communication doesn't disclose the type of distribution that was done, which doesn't provide the ability for the opponent to respond. He pointed to examples of late night or election day campaigning. Mayor Bromberg confirmed with City Attorney Burnham that the staff proposals for City Council consideration are meant to provide the legal issues involved with implementing such regulations. Council Member Proctor referred to the disclosure of campaign solicitations and asked if the concept would apply to a grant applicant who solicited more than $500 for a candidate. City Attorney Burnham stated that such a person would need to disclose their activity. Mr. Reed added that the burden for disclosure would be on the applicant, not on the elected official. Council Member Heffernan stated that his reason for bringing the issue of election regulations to the City Council for discussion was to attempt to add some integrity to the system. He stated that voter turnout is decreasing and it's probably because the voters don't trust politicians. He stated that this perception needs to be changed and that it's a problem that's not unique to Newport Beach. Mayor Bromberg stated that he doesn't feel that voters don't go to the polls because they don't trust their elected officials. He stated that those that don't trust their elected officials are in the minority and that a more likely reason for low voter turnout is apathy. Mayor Bromberg stated that there is a high level of integrity in Newport Beach government. Council Member Adams agreed and stated that if the voters don't like what they see, it should be a reason for them to get out and vote. Council Member Heffernan disagreed and stated that people don't vote because they feel their vote doesn't count. He stated that the perception needs to be changed and there's an opportunity for the City to do something. Council Member Adams stated that it's wrong to think that an individual vote doesn't count and that it indicates a misunderstanding of the system. Tom Billings thanked the City Council for addressing the issue, and stated that ethics also needs to be addressed. He stated that a group of concerned citizens have developed the Campaign Reform and Ethics (CARE) Code. Mr. Billings provided a handout with information on the CARE Code, which was put together by the group with input from similar organizations outside of Newport Volume 56 - Page 8 City of Newport Beach Study Session Minutes March 11, 2003 INDEX Beach. He stated that the overriding purpose of CARE is to set ethical benchmarks for candidate conduct in elections. He stated that some of the proposals discussed earlier in the meeting are covered in the CARE Code. Specifically, the CARE Code limits campaign expenditures to $15,000 per candidate. He stated that the CARE Code also prohibits an incumbent candidate from using his or her City position or City resources for campaign purposes. Mr. Billings stated that the CARE Code also addresses ethics by asking each candidate to voluntarily agree to honesty and fairness, responsibility, and respect and compassion. Ann Watt stated that she's a citizen who feels that the campaign issue is important and goes to the heart of the country's Constitution. She thanked those involved with having the issue brought before the City Council and stated that the money granted to the Airport Working Group (AWG), the Citizens for Jobs & the Economy (CJ &E) and the Orange County Regional Airport Authority (OCRAA) provides an example that something needs to be done. She specifically noted Dave Ellis, the director of AWG, and his involvement with the campaigns of some of the council members. Council Member Adams pointed out that Mr. Ellis was not his campaign manager during the 1998 election. Ms. Watt stated that the City of Newport Beach is powerful and influenced the County's decision regarding the John Wayne Airport settlement agreement. Ms. Watt stated that Mr. Ellis benefited from the money granted to AWG and there's a perception that it's a payback. She stated that certain council members should have recused themselves from voting. She requested that the City not grant salaries to organizations such as OCRAA, because it would be unclear who the employee would be influenced by. Philip Arst, spokesperson for Greenlight, referred to Greenlight's correspondence of March 7, 2003, and stated that the PRA and the City's campaign contribution regulations are clear, cover many of the issues being discussed and have mechanisms for enforcement. Mr. Arst stated that regarding the proposal to require filing of all communications, Greenlight is suggesting that each candidate receive a page on the City's website for their use. He stated that no regulation will ever work perfectly, but leveling the playing field should be strived for and is the reason why Greenlight is recommending that the City Charter be changed to hold elections by district. He stated that it will reduce the amount of money spent on campaigns. Mr. Arst stated that he disagrees with the proposal to restrict intermediaries from providing funding to candidates. He stated that it restricts the ability of residents to unite and solicit contributions. Mr. Arst stated that he has the highest regard for the City's police and fire departments, but feels that there is a conflict of interest when they support candidates. Dolores Otting stated that she ran for the City Council in a previous election and was interviewed by the fire union. She stated that the police groups did not interview her and she has heard of similar complaints from other candidates. Nis. Otting stated that if they are going to support a candidate, they should have to interview all of the candidates. She additionally noted that the message being sent out when the fire and police associations support a particular Volume 56 - Page 9 City of Newport Beach Study Session Minutes March 11, 2003 INDEX candidate is that the streets will be safe if that candidate is elected. She commended Council Member Heffernan for his efforts. Bernie Svalstad asked how violations would be enforced and suggested that they be handled by the City instead of by the district attorney or a special prosecutor. City Attorney Burnham stated that the City's campaign contribution ordinance is clear on who can enforce the regulations. He stated that an appointed city attorney should not have the authority to do so since he or she is an at -will employee, can be dismissed at any time and may not aggressively pursue a violation. Mayor Bromberg thanked the speakers. He stated that he disagrees with limiting the amount of money a candidate can raise. He also disagreed with holding elections by district because the citizens look to all of the council members to take care of their concerns. Additionally, Mayor Bromberg stated that he was told that the fire and police groups provided every candidate with the opportunity for an interview in the recent election. Of the proposals offered by staff, Council Member Adams stated that he supports the idea of training for candidates and treasurers. He also expressed his support for updating the filing of communications to include all forms of communication, and to do so electronically. He stated that the other proposals need further investigation and discussion before he could support them. Mayor Bromberg agreed with Council Member Adams' comments. Council Member Heffernan stated that one of the most important issues is full disclosure between campaign contributions and later votes, although he doesn't necessarily support recusal. He stated that the implementation of the new ordinance in Los Angeles should be investigated by the City. Mayor Pro Tem Ridgeway stated that he also supports the two items supported by Council Member Adams, and that he is interested in seeing what happens with the new regulations in Los Angeles. Mayor Pro Tem Ridgeway noted that although the issues involving Mr. Ellis may have prompted a look at the City's campaign regulations, it should be clear that the City Council did not hire Mr. Ellis. He stated that money was given to AWG, but not to Mr. Ellis. Mayor Pro Tem Ridgeway additionally stated that he does not support elections by district since many issues are city -wide issues and the voters should be able to vote for all of their representatives. Lastly, Mayor Pro Tem Ridgeway stated that he felt that the recent campaigns were run with integrity and he disagrees with limiting campaign expenditures. Council Member Nichols stated that there were problems in the recent campaign and that they were structural, not minor. He stated that there should be full disclosure of communications and contributions. He also supported pursuing and discussing the proposals further. Council Member Webb agreed with the two items supported by Council Member Adams. He stated that he didn't quite understand the difference in what would be accomplished by the disclosure of campaign solicitations and personal services, as outlined by City Attorney, and suggested that they could possibly be Volume 56 - Page 10 City of Newport Beach Study Session Minutes March 11, 2003 combined. Council Member Webb supported council members being voted on city -wide since they represent the entire city. Council Member Heffernan asked if staff had enough direction. Mayor Bromberg stated that the consensus seems to be for support of the second and seventh proposals presented by the City Attorney. Council Member Heffernan stated that he would still like to see the fifth proposal pursued, that an audit of the AWG grant did show that Mr. Ellis was paid $435,000 and his campaign involvement should have been disclosed. Mayor Bromberg stated that it provides an example of how someone can be compromised. He stated that just because a grant was given to a third party and they hire someone who was involved with a council member's campaign doesn't mean that there is anything unethical happening. City Attorney Burnham stated that it might be appropriate for the City to follow the implementation of the ordinance in Los Angeles, and return with additional information on the fifth and sixth proposals based on the concerns heard at the meeting. PUBLIC COMMENTS — None. ADJOURNMENT — at 6:12 p.m. The agenda for the Study Session was posted on March 5, 2003, at 4:15 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 56 - Page 11 INDEX CITY OF NEWPORT BEACH City Council Minutes Regular Meeting March 11, 2003 - 7:00 p.m. STUDY SESSION - 4:00 p.m INDEX CLOSED SESSION - 6:15 p.m. * * * * * * * * * * * * * * * * * ** A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Absent: None C. CLOSED SESSION REPORT - None. D. PLEDGE OF ALLEGIANCE - Aaron Israel, Corona del Mar High School Student and Youth Council Member. E. INVOCATION - Reverend Lloyd Sellers, Hoag Memorial Hospital, Presbyterian. STAR SPANGLED BANNER - Performed by the Newport Harbor High School Jazz Band, led by Band Director Rob Henthorn. F. PRESENTATION Presentation by the National Committee for Employer Support of the Guard and Reserve (contd. from 2/25/03). Continued to a future meeting. Proclamation for Newport Harbor Sailors Marching Regiment and Color Guard and Choirs. 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): • Regarding the Castaways Park landscaping, Council Member Webb noted that the City received a grant to provide natural plant material and the plan is being developed to have an irrigation system for a meadow grassland. He stated that a number of citizens have asked him Volume 55 - Page 12 City of Newport Beach City Council Minutes March 11, 2003 INDEX why this area could not be a mowed grass area. He asked if the CIOSA agreement has any restriction that keeps the City from making the area a mowed grass area. Council Member Webb also asked what the plans are for the park and whether the salt bush could be replaced with another natural material. He requested that these issues come back at a study session. Regarding the SARX studies, Council Member Webb stated that the City received correspondence from surrounding cities regarding Fountain Valley's application for OCTA funds. He listed new developments in the surrounding cities and noted the potential for traffic increase. He believed that the City needs to look at its position and reported that, without the 191h Street bridge, the mitigation measure is to widen Coast Highway in West Newport to eight lanes and construct Bluff Road. He requested that these issues be discussed at a study session so a position that supports Fountain Valley's crossing study is generated and to get more information about creating the 19th Street bridge. Regarding Coast Highway costs, maintenance, and liability, Council Member Nichols asked that this be considered formally and be made public. Mayor Pro Tem Ridgeway reported that Caltrans presented a mitigation measure today regarding water runoff to the Areas of Special Biological Significance (ASBS), but it was denied. He asked that the ASBS mitigation be included in the report. City Manager Bludau reported that staff has been negotiating with Caltrans' staff to see what the financial parameters would be so Caltrans would offer relinquishment to the City. He indicated that this was directed by Council about two years ago. He assured that, after staff negotiates the best deal possible, the issues will be brought back to Council for consideration. He asked if staff should proceed as previously directed. Mayor Bromberg believed that staff needs to go forward with the direction given to them. Council Member Adams believed that it is not advantageous to engage in public discussions during negotiations. He stated that the current tact to come back to Council for a hearing and to bring up Council Member Nichols' issues is a good way to go. Council Member Nichols stated that people need to be made aware of what is being considered. Mayor Bromberg indicated that the City is in the midst of negotiations and the last thing it should do is throw more issues on the table. He stated that the City should go forward with good business practices, finish negotiations, and decide whether or not this should be done. Council Member Adams noted that this is not something that was initiated without public discussion, adding that the previous Council held public hearings to discuss the issues and gave staff direction. He acknowledged that it is this Council's prerogative to stop this, but he believed it is prudent to continue. Council Member Nichols noted that this has not been brought up since it was discussed previously and citizens do not know that the City is negotiating the taking over of Coast Highway from Jamboree to the eastern City limits. He expressed concern that liability was not a part of any relinquishment. Volume 55 - Page 13 City of Newport Beach City Council Minutes March 11, 2003 Le I. Mayor Bromberg announced that the American Cancer Society's Relay for Life will be held May 2 to May 3 at Newport Harbor High School. He stated that he is still looking for more team members on the "Council Critters ". He noted that people can call the Mayor's office at 644 -3004 for more information. 17. POTENTIAL REVISIONS TO CITY TREE ORDINANCES AND POLICIES (contd. from 2/25/03). — 7:15 p.m Mayor Bromberg reported that, when the City entered into the settlement agreement with the Balboa Arbor Society (BAS), the City agreed to pay BAS' attorney fees and look at the G -1 policy which deals with special trees, reforestation issues, and tree trimming cycles and standards. He believed that the G -3 policy deals with views, not G -1, and is not the subject of review unless Council decides to review all the tree issues. He added that a lot of the homeowners associations (HOA) are content with the existing view policy. Mayor Bromberg indicated that, with Council approval, he is recommending that a Council committee be formed which consists of three Council members to decide what direction, if any, should be taken, have a public committee meeting, and bring back a recommendation to Council. He added that the City has been voted "Tree City USA" For the twelfth consecutive year. City Manager Bludau noted that this was brought to Council as part of the settlement agreement which states that Council will consider the appointment of a committee to look at the G -1 policy. Council Member Adams indicated that he hears two different interpretations of what the settlement agreement requires. He referenced the issue raised in the staff report and asked if the agreement gives the City latitude so a determination could be made that a committee not be established and no further action be taken. City Attorney Burnham believed that the agreement requires the City to appoint a committee to consider revisions and to bring back recommendations. Mayor Bromberg requested clarification on whether the agreement states that the City will appoint a committee or just consider appointing a committee. City Attorney Burnham left the Council Chambers to review the settlement agreement since he did not have it with him. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. Removed at the request of Council Member Webb. 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. Volume 55 - Page 14 INDEX Tree Ordinances & Policies (62) City of Newport Beach City Council Minutes March 11, 2003 RESOLUTION FOR ADOPTION 3. Removed at the request of Mayor Bromberg. CONTRACTS AND AGREEMENTS 4. IRVINE AVENUE MEDIANS - C -3279 - COMPLETION AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond on -year after Council acceptance. 5. BALBOA ISLAND BAYFRONT REPAIRS (2001- 2002), C -3458 - COMPLETION AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond on -year after Council acceptance. 6. APPROVAL OF AGREEMENT AND BONDS FOR PARCEL MAP NO. NP2002 -014 - 3100 & 3150 WEST COAST HIGHWAY. Approve an agreement and accompanying security (Bonds) guaranteeing completion of public improvements on Avon Street required as a condition of approval of Parcel Map No. NP2002 -014, and authorize the Mayor and the City Clerk to execute the Agreement. 7. LEGISLATIVE ADVOCACY CONTRACT - EMANUELS JONES & ASSOCIATES. Authorize the City Manager to execute a Professional Services Agreement with Emanuels Jones & Associates for legislative advocacy services for the period of March 2003 through March 2006 in the amount of $3,605 per month. S. LIFEGUARD VEHICLE SPONSORSHIP AGREEMENT. 1) Enter into an agreement between the City, as a party to the Beaches of Southern California Coalition, and the Chevrolet Motor Division of the General Motors Corporation for sponsorship of lifeguard vehicles; and 2) approve a budget amendment (BA -049) transferring $8,450 from unappropriated Internal Service Fund reserves to General Service Account 6120 -9102 for the cost to transfer and install emergency equipment onto the loan vehicles. 9. DONNA AND JOHN CREAN MARINERS BRANCH LIBRARY - AWARD OF PROJECT MANAGEMENT SERVICES TO GRIFFIN STRUCTURES, INC. (C- 3496). 1) Approve a Project Management Services Agreement with Griffin Structures, Inc., of Laguna Beach, California, for a not -to- exceed price of $195,000 and authorize the Mayor and City Clerk to execute the agreement; and 2) approve a budget amendment (BA -051) authorizing the appropriation of $195,000 from the unappropriated balance of the General Fund to Account No. 7011 - 05100661. Volume 55 - Page 15 INDEX C -3279 Irvine Avenue Medians (38) C -3458 Balboa Island Bayfront Repairs (38) C -3603 Parcel Map NP2002 -014/ 3100 & 3150 W. Coast Hwy (38) C -3083 Legislative Advocacy (38) C -3604 BA -049 Lifeguard Vehicle Sponsorship (38/40) C -3496 BA -051 Donna & John Crean Mariners Branch Library (38/40) City of Newport Beach City Council Minutes March 11, 2003 10. BUDGET AMENDMENT BIKEWAYS AND TRAILS. appropriating $57,933 from Account No. 7283- C5100543. TO APPROPRIATE FUNDS — Approve a budget amendment (BA -048) Bikeways and Trails Fund No. 292 to 11. Removed at the request of Council Member Nichols. 12. Removed at the request of Council Member Proctor. 13. Removed at the request of Council Member Heffernan. 14. BONITA CREEK, GRANT HOWALD, CHANNEL PLACE, AND SAN MIGUEL PARKS - APPROVAL OF PROFESSIONAL SERVICES AGREEMENTS FOR DESIGN SERVICES FOR PLAYGROUND EQUIPMENT. Continued March 25, 2003. S22. BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT RENEWAL: ANNUAL REPORT FOR FISCAL YEAR 2002 -2003 AND ADOPTION OF RESOLUTION OF INTENTION TO LEVY FOR FISCAL YEAR 2003 -2004. 1) Approve Balboa Village Business Improvement District 2002 -2003 Annual Report; and 2) adopt Resolution of Intention No. 2003 -15 and set the public hearing for March 25, 2003. Motion by Mayor Pro Tern Ridgeway to approve the Consent Calendar, except for those items removed (1, 3, 11, 12, and 13), and noting the continuance on Item 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 ADJOURNED REGULAR AND REGULAR MEETING OF FEBRUARY 25, 2003. Referencing the motion on page 667, Council Member Webb believed that "nonirrigated" was removed from the grass area. On page 671, he indicated that his statement should be changed to read, "...suggested that the EIR clearly cover in sufficient detail the result of implementing the recreational/open space designation as a no project alternative" Jim Hildreth stated that he has been asking for changes to the minutes, but they do not seem to happen for him. He noted that his statements from the February 11, 2003 meeting were condensed to two sentences Volume 55 - Page 16 INDEX BA -048 Bikeways and Trails (40/74) C -3605 C -3606 Playground Equipment (38) Res 2003 -15 Balboa Village BID (27) City of Newport Beach City Council Minutes March 11, 2003 INDEX when he spent nearly five minutes discussing two sets of meeting minutes. He indicated that he made a lot of requests for changes since there were words missing. He requested that the changes be put in the minutes and have his words correctly stated. On page 657, Mr. Hildreth indicated that he used Public Works Director Badum's words who stated, in December 2001 and January 2002, that the City- installed ladder was unsafe. Further, the City Manager indicated that it was not insured. He also indicated that he stated that the municipal services statement is for potable water and sewage, and that the bill has nothing to do with a residential pier location, mooring location, or anything that has to do with a boat in the water. He believed that the City putting this location into obscurity for J.M. Hildreth shows that it is trying to hide something. He added that Mr. Badum mentioned a "Harbor Resources Manager ", in December 2001 and January 2002, but this was the first time anyone had heard of a Manager for the Harbor Resources Division. Mr. Hildreth took issue that Tony Melum, as the Harbor Resources Director, sent an unsigned letter on February 26, 2002 as the Harbor Resources Manager. Motion by Council Member Adams to waive reading of subject minutes, approve as amended by Council Member Webb, 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 O. CONTINUED BUSINESS (continued) 17. POTENTIAL REVISIONS TO CITY TREE ORDINANCES AND POLICIES. City Attorney Burnham distributed applicable provisions of the settlement agreement and believed that the language in the staff report does not accurately state the scope and extent of the City's obligation. He referenced Section 6 and read, "Nonetheless, the City and BAS are in agreement that a Tree Ordinance would be a potentially salutary provision, and the City commits by this agreement to undertake a review of its existing G -1 policy and to consider in a timely manner the adoption of a City Tree Ordinance that would make removal of trees the City identifies as protected trees a violation of the City Municipal Code." He expressed the opinion that the City is obligated to conduct a review of the G -1 policy and consider the adoption of a tree ordinance that establishes clear penalties for the removal of City trees. In response to Mayor Bromberg's question, Mr. Burnham indicated that Council is not required to form a committee, but staff is required to bring a recommendation to Council to appoint a committee to commence Volume 55 - Page 17 City of Newport Beach City Council Minutes March 11, 2003 INDEX a public process for the systematic review of the G -1 policy. He stated that it was his recollection that it was contemplated that the review of the G -1 policy would be conducted by a committee that also had public representation. He added that he believes this was also BAS' expectation. Mayor Bromberg asked if Council can review the G -1 policy now. City Attorney Burnham noted that Council could, but the City is committing to take a systematic review. He stated that it was envisioned that there would be a process for discussions about the best way to resolve a number of issues. Council Member Adams believed that the only proper topic of consideration tonight is whether or not to form a committee and not the policy itself. Mr. Burnham pointed out that the action tonight should be to consider the appointment of the committee and to give direction to staff and committee members regarding the issues Council believes are appropriate for consideration in the G -1 policy revisions. Council Member Adams believed that Council can undertake the required review without forming a committee, but this would need to be done at another meeting since it was not noticed on tonight's agenda. Mayor Pro Tem Ridgeway believed that the committee does not have to be a Council committee, noting that there is a lot of history with the Parks, Beaches & Recreation Commission (PB &R). He recommended that this be deferred to PB &R. He emphasized that the City is under obligation to consider a tree ordinance, but not obligated to approve it. Mayor Bromberg asked if Council is receptive to forming a committee. Council Member Nichols indicated that the City has a good tree policy but it needs to enforce it. He stated that, if a committee was necessary as part of the agreement, he would support it. Council Member Webb believed that a committee should be formed, but is unsure if it should be a Council committee. He also suggested utilizing PB &R to flush out the major concerns, generate a package for approval, and possibly have a Council committee review PB &R's recommendations. Council Member Adams, Mayor Pro Tem Ridgeway, and Council Member Proctor concurred. Council Member Heffernan had no opinion on the issue. City Manager Bludau clarified that the G -1 policy does discuss issues that affect views. Mayor Bromberg reiterated that the consensus is to appoint a PB &R Committee to sort out the issues and bring back recommendations to Council. Mr. Burnham clarified that the agreement obligates the Council to establish the committee. Motion by Mavor Bromberg to direct that this issue be forwarded to the Parks, Beaches & Recreation Commission to form a committee so they can review the G -1 Policy, review the issues in the staff report but not be limited to those issues, consider the content of a City tree ordinance, and report back to Council. Volume 55 - Page 18 City of Newport Beach City Council Minutes March 11, 2003 INDEX In response to Council Member Nichols' question, Mayor Bromberg stated that this does not require that a BAS member be appointed to the committee yet. However, after PB &R comes back to Council, Council can do this if it feels a greater committee needs to be formed. Debra Allen, Parks, Beaches & Recreation Commission Chair, encouraged everyone to provide opinions because this will be a huge project. She pointed out that the G -1 policy has a provision about tree trimming standards, supplemental tree trimming, and reforestation, and that these were the contentious issues that took 18 months to reach a compromise. She explained that these provisions are important because they permit the City arborist and tree trimmers to trim trees to protect views. She emphasized that the City has taken a position to protect views, as noted in the G -3 policy, and added that Dr. Vandersloot, herself, and a number of others sat on the citizen committee that reached the compromise. Gary Allen requested that Council instruct staff to follow the current policies until it is changed, modified, or amended since the current policy requires City assistance to get trees trimmed on a supplemental basis in the view neighborhoods. He believed that the City is "View City USA" because it is the views that make the City what it is, not trees. He added that the value of their homes is dependent on views. He pointed out that they worked on this for two years and even got Stop Polluting Our Newport (SPON) to buy off on it. He added that he had a petition signed by 48 residents who could not attend the last meeting requesting that the committee be heavily weighted in favor of the view communities. Amended motion by Mayor Bromber¢ to add that the City will maintain the existing policy until changes are made by Council. Linda Grant, Balboa Arbor Society, believed that this issue has been blown out of proportion by the Mayor since this has nothing to do with views. She noted that BAS is not militant and would not make people keep trees that they do not want, especially if the tree is diseased, has problems, or is ripping up something. She indicated that BAS only wants the City to enforce the policy, care about the trees, and honor what was agreed to. She thanked the City for keeping the tree at the Balboa Inn. She indicated that they want a committee formed that is run by an arborist. Further, the arborist should make the tree decisions and BAS would like to be part of the committee. Mayor Bromberg explained that the City won the lawsuit in court, proceeded to cut down the trees on Main Street, and BAS filed an appeal. He noted that all that was left of the cut trees were stumps, so the City asked BAS if it could remove them. He reported that the case was not going to be heard in the appellant court until May 2003, but the City had to start Phase II of the Balboa Village improvements the first week of January 2003 or it would lose $200,000, plus the project would be delayed one year. He stated that BAS would not let the City remove the stumps until the City paid BAS' $57,000 attorney fee and agreed to Volume 55 - Page 19 City of Newport Beach City Council Minutes March 11, 2003 INDEX review the policy. He assured everyone that the City followed the law, signed the agreement, and will do it the right way. Yvonne Houssels stated that she is the former president of the Harbor View Hill South HOA, served on the previous review committee for two years, and represents 449 homeowners. She reviewed statements by Newport Beach realtors about the importance and added value of having a view. She added that, in Districts 2, 3, and 7, view preservation was one of the prime issues that residents have asked be addressed in the updated General Plan. She indicated that the present G -1 policy was established in 1998 with the participation of her HOA, arborists, City staff, PB &R, and Council. She stated that it provided for reforestation and trimming to protect the views of all the residents, while still preserving the urban forest. She indicated that her HOA was not apprised of the G -3 policy until tonight, but noted that there are sections of the G -1 policy that are not addressed in the G -3 policy. She requested that, if a change is going to be made, the G -1 policy's view preservation sections remain unchanged so the HOA boards can continue to enforce the governing documents. George Parker stated that he was on the committee when the G -1 policy was drafted. He relayed a tree incident he encountered and believed that a homeowner should not violate the rules of the HOA they belong to and mess up someone else's rights. He stated that he is not just talking about tree trimming, but reforestation of large trees. He emphasized that views are important and expressed his hope that the committee considers reforestation as an important part of this. Council Member Heffernan noted that Ms. Houssels said to leave the tree policy to the HOAs and Mr. Parker said that the HOAs had rules but they did not enforce it until something happened. Ms. Houssels explained that the HOA rules were ultimately enforced, but it took a very long time. She indicated that part of the problem was that some of the associations did not fully understand the G -1 policy; however, the policy has worked well. She confirmed that there are rules within the association. Tess Lier stated that she worked on the G -1 policy and requested to be put on the committee. She thanked Council for all the time they give to the City and for all they do. Mayor Bromberg announced that anyone or any HOA wanting to be on the committee, if formed, should contact the City Clerk's office. Bill Simons indicated that the impairment of views has been held in California to be inverse condemnation and referenced the condemnation practice in page 633 of California's Continuing Education of the Bar (CEB) (Pieroont Inn vs the State). He reported that a public entity is liable to pay damages for inverse condemnation if: 1) a plaintiff has ownership interest in real property, 2) the defendant is engaged in some project for which it claims is a public benefit, 3) there is causation, and 4) there is real property of the plaintiff to suffer diminution in value. Regarding the view homeowners, he believed that CC &Rs should be Volume 55 - Page 20 City of Newport Beach City Council Minutes March 11, 2003 INDEX stronger than at Pierpont Inn because they did not have a right to a view in its documents of title. He stated that, unlike homeowners in non -CC &R neighborhoods, those who purchased homes in neighborhoods with governing documents that restrict the height of trees have paid for a reasonable expectation of view preservation. He indicated that, if the City does not respect those restrictions and maintains its trees within HOAs so they interfere with views, the City trees affect the taking. Further, if the protected views are blocked by City trees, the HOA may not be able to enforce the CC &Rs against other homeowners. Bob Pastore reported that the City has 142 HOAs. He requested that the motion be restated prior to the vote being conducted. Jan Vandersloot, Vice President of the Balboa Arbor Society, stated that the BAS has never made statements about doing anything with view protection in the G -1 policy and that the people of Corona del Mar have nothing to fear from BAS. He agreed that he was part of the committee that generated the G -1 revisions, developed a supplemental tree trimming schedule which has largely dissipated the concerns about views, and developed a reforestation policy that addresses the trees that could not be trimmed for views. However, he believed that, in the last couple of years, the G -1 policy has been expanded so anyone can reforest a tree for any reason. He stated that they are objecting to the uneven application of the G -1 policy and staff not following the policy. Dr. Vandersloot indicated that they have asked the City to consider forming a tree care ordinance. He noted that this is also one of four qualifications to become a "Tree City USA" and distributed a How to Write a Municipal Tree Ordinance bulletin. He noted that another requirement is that the city have a tree board or department, and recommended forming a more permanent tree committee that includes members of the public, SPON, BAS, and the Earth Resource Foundation. He asked why the City was given an award for being a tree city for twelve years when it does not have a committee or an ordinance. He noted that an ordinance gives them more assurances that the policies are going to be followed, believing that Council ignored the special tree policy when it voted to remove the ;Main Street trees. He explained that this is why BAS filed the lawsuit. He added that developing a tree care ordinance was one of the provisions of the settlement. '.Mayor Pro Tem Ridgeway asked Dr. Vandersloot if he agreed with the G -1 policy two years ago. Dr. Vandersloot indicated that he agreed with the reforestation and supplement tree trimming sections, but disagreed that the public cannot appeal a PB &R decision to Council. He asked that any revision give empowerment to the people. Further, they found that the application of the policy was uneven. He pointed out that special trees are only supposed to be removed if they are dead, diseased, or hazardous. Diane :Meyer stated that it surprises her that well- educated people would waste money on frivolous lawsuits. She believed that it is a shame that the City felt it had to pay the attorney fees and that a lot of Volume 55 - Page 21 City of Newport Beach City Council Minutes March 11, 2003 INDEX time has to be spent on revisiting the issue when the same people who are now unhappy with the policy previously worked on it. Mayor Bromberg indicated that paying $57,000 was better than $200,000. Wesley Taylor stated that he loves his view and the palm trees, and asked what affects the proposed or current regulations will'have on the height of palm trees. Mayor Bromberg directed staff to contact him. Guy Cazort stated that he attended the previous G -1 policy meetings and noted that a lot of effort was spent reviewing it. He indicated that he would hate to see more money spent on revisiting this and believed that the City should cut its losses since the policy is working. Alan Oleson explained that, within an HOA, there are rules to keep someone from growing a tree in front of someone's view. However, from one HOA to another, that rule does not exist. He hoped that Council will consider this problem. Mayor Bromberg encouraged him to attend the PB &R meeting. Mr. Burnham clarified that the City does not have jurisdiction over private trees on private property. He noted that this issue deals with rules and regulations related to City trees within the right -of -way or on City property. Mayor Bromberg clarified that the substance of the motion is to have PB &R form a committee to review the G -1 policy and issues set forth in the staff report, but not be limited to those issues alone; PB &R will bring recommendations to Council; and Council will decide whether a more formal committee should be established which consists of Council Members, PB &R members, BAS members, and HOA members. Further, the City will maintain the existing policy until a change or amendment is made. Council Member Webb stated that Council is aware of people who have views and believed that the City needs to work hard to ensure that those views are protected. He noted that the G -1 policy also needs to protect the urban forest because, if you do not have a view, the trees are what makes a community a wonderful place to live. He emphasized that the trees that the City has need to be protected. Further, if the City is going to look at reforestation, it should not look at a wholesale cutting down of 15 to 20 trees, but should cut down in phases. He stated that significant maintenance should also be done to the trees that undergo more frequent trimmings if it looks like damage is occurring. He indicated that all this should remain in the policy. Mayor Pro Tem Ridgeway reported that there has been a small number of trees that have been removed or reforested since the recent amendments to the G -1 policy. He noted that, since July 2002 and exclusive of the ficus trees on Main Street, 33 trees have been removed and some of those were due to emergencies. However, he pointed out that 470 trees have been planted by the City to replace the 33 trees removed. He indicated that he supports the G -1 policy as it exists, but believed that there are some inconsistencies. He stated that he supports PB &R cleaning up the inconsistencies. He added that it is unfair for a Volume 55 - Page 22 City of Newport Beach City Council Minutes March 11, 2003 person in West Newport to tell a Corona del Mar resident that he cannot take his tree out. He emphasized that the City now has 33,000 trees and that this number will continue to increase. Council Member Adams stated that it is great that the City has received the "Tree City USA" award, but believed that the City should not let the requirements of an award dictate City policy. Mr. Burnham requested and received confirmation from Mayor Bromberg that the motion is to have the PB &R Chair select three of its members to systematically review the G -1 policy and evaluate and make recommendations regarding the development of a tree ordinance. Mayor Bromberg added that, if Council needs to take it further, it can do so. He stated that he received an update regarding the tree count and reported that, from February 2002 to February 2003, the City has removed 69 trees. He noted that 23 were the Main Street trees and seven were emergency removals, but the City planted 596 trees. 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 (continued) 3. ESTABLISHMENT OF THE CITY COUNCIL ECONOMIC ADVISORY COMMITTEE. Mayor Bromberg stated that, if Council approves this, he will be appointing Mayor Pro Tem Ridgeway, Council Member Adams, and himself as the chair. City Manager Bludau stated that several of the cities he has worked with have redevelopment agencies (RDA) in order to foster economic development, but the City currently does not have an RDA. He indicated that staff has recently been contacted by a number of potential developers who would like to look at investing in the community. He believed that this places staff in a difficult position and is incapable of dealing effectively in terms of giving them a feeling of security that they can move forward and start planning their project, especially projects that may take a general plan amendment or zoning amendment. He believed that the City needs a Council subcommittee that can identify issues early. He emphasized that the committee will not be granting any type of approval, but will meet with people interested in investing in the community. He added that this would be a Brown Act committee that would be open to the public. Mayor Bromberg indicated that he sits on the Economic Development Committee (EDC) with Mayor Pro Tem Ridgeway and Council Member Volume 55 - Page 23 INDEX Res 2003 -14 Economic Advisory Committee (24) City of Newport Beach City Council Minutes March 11, 2003 ufi�i3-xi Adams. He believed that there is a need for this because there is a gap missing prior to issues going to the EDC. Council Member Proctor asked if there is a model for this. Mr. Bludau stated that cities with RDAs have clear plans about what their economic development is intended to do and what their priorities are. Dolores Otting stated that she does not understand this or why it is needed. She noted that 1%z hours was spent discussing campaign reform at the study session and believed that this is a perfect breeding pond for influence peddling. She asked how an RDA works and believed that the staff report is short for such an influential committee. She indicated that she does not know of another city without an RDA that has a committee like this. She stated that the City has the EDC which includes people who do not live in City so it has the best of the best. She indicated that she does not understand why they cannot do this function and asked why the City has a visioning process if the City is going to set up this committee. She does not believe this is necessary and that a lot may go on that could taint Council. Mayor Bromberg utilized a car dealership as an example and stated that there is no mechanism for the dealership, other than to sit with staff, to determine if it is the type of car dealership the City would want or if there is a location. He believed that the committee will be more of a scoping committee and that the item will most likely go before the EDC anyway. He stated that they will not know if it is a good idea until they try and assured that they will not be pounding the streets looking for business. In response to Council Member Proctor's question, Mayor Bromberg stated that this is being done because there is something missing before it gets to the EDC and that this puts it over the hump to get it to them. He believed that rolling this into EDC would not produce anything. Mr. Bludau believed that the City does not do this well now and that he does not feel comfortable giving direction to someone who wants to propose something with land values. He stated that the committee would have the authority to ask staff to come up with information, rather than have him decide whether staff is to spend 20 to 30 hours looking at options. He indicated that they are looking for a balance between staff and the policy makers. Mayor Pro Tem Ridgeway stated that a company may go to the Chamber of Commerce or Assistant City Manager Wood as the Economic Development Director; however, there is no direction after that. He reiterated that the meetings will be open to the public. He indicated that he doubts that the person or entity would come forward in a public hearing because of the confidentiality required in a competitive market. He stated that this may be a committee that goes nowhere. Council Member Heffernan asked why an entity would play their cards out. He believed that the entity would make a call to a Council Member, Volume 55 - Page 24 City of Newport Beach City Council Minutes March 11, 2003 meet in private, and then approach staff. Mayor Bromberg explained that he chose Mayor Pro Tern Ridgeway because he has experience in this field, Council Member Adams' district is in an area that probably has more opportunity for business than many areas in town, and he is on the committee because the Mayor should be involved if this deals with businesses. Motion by Mayor Bromberg to adopt Resolution No. 2003 -14 establishing the City Council Economic Advisory Committee which consists of Mayor Bromberg (Chair), Mayor Pro Tern Ridgeway, and Council Member Adams. Council Member Nichols noted that Council Members have spoken to businesses in the City and it has worked out well. Mayor Bromberg explained that the committee will be dealing with new businesses coming into the City. Council Member Nichols believed that this could be handled more informally. The motion carried by the following roll call vote Ayes: Proctor, Ridgeway, Adams, Webb, Mayor Bromberg Noes: Heffernan, Nichols Abstain: None Absent: None 11. APPROPRIATION OF $50,000 FROM THE AFFORDABLE HOUSING IN LIEU FUND TO CIP ACCOUNT #7014, C2700706 IN SUPPORT OF THE LOWER BAYVIEW AFFORDABLE SENIOR HOUSING PROJECT. Council Member Nichols stated that he has nothing against the project, but believed that more people are concerned with the City taking away more parkland. He indicated that he would like residents to receive written background on why the project has to be built as proposed. Mayor Pro Tern Ridgeway noted that the staff report is for an appropriation of funds and not to revisit the site. Motion by Mayor Pro Tem Ridgeway to approve a budget amendment (BA -050) to appropriate $50,000 from the Affordable Housing Mitigation Fund to Lower Bayview Affordable Senior Housing Project CIP. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Volume 55 - Page 25 INDEX BA -050 Lower Bayview Affordable Senior Housing Project/ Use Permit No. 2003 -003 (40/88) City of Newport Beach City Council Minutes March 11, 2003 12.. CITY COUNCIL AWARD OF $15,000 GRANT TO THE DESIGNATED DRIVERS ASSOCIATION OF ORANGE COUNTY. Council Member Proctor stated that this is to appropriate some seed money to start a program that can potentially save a lot of lives. Kori Flechtner, Executive Director of the Designated Drivers Association (DDA) of Orange County, thanked Council for its support and Council Member Proctor for taking the initiative on this. She stated that DDA volunteers pass out bar cards every Friday night, Saturday night, and major drinking holidays from 10 p.m. to 2 a.m. to get the word out that people should not drink and drive. She reported that, after receiving a call on the toll free number, one volunteer drives an intoxicated person's car home while another volunteer follows in their own car. She stated that the concept behind their program stems from a lot of people deciding to drive drunk because they do not want to strand their cars. She reported that Malarky's, the Newport Brewing Company, Mutt Lynch's, the Beach Ball, Blue Beet, the Stag Bar, Josh Slocums, and the Little Knight have invested in the program to ensure that their clients get home safely. She indicated that they have over 170 vehicles and have safely driven over 350 people home this year. She stated that people can call to use the service or become a volunteer by calling (866) 949 -7233. Mayor Bromberg stated that he and his wife were having lunch at the Brewing Company and that their posters are very prominent. He commended them for this. Mayor Pro Tem Ridgeway commended DDA for getting their service into the problem bars and encouraged them to push for more bars on the peninsula. He added that they have focused on the right ones so far. Ms. Fletchner indicated that their goal is to get as many bars and restaurants on board as possible. Council Member Adams agreed that this is an important program; however, in light of the current financial uncertainties for the City, he asked if it is prudent to be taking on discretionary grants. He noted that $15,000 is not a lot of money but it appears that the organization is doing well without it. He stated that he supports the program, but is not sure this is a good expenditure of taxpayer money at this time when the City is facing potential rough times. He added that the City should take a look at all the discretionary grants and programs because it may need to make some cuts. He noted that, if cuts are made in two months, it does not seem appropriate to start a new commitment to a new organization. He indicated that, for this reason, he will not be supporting this even though he supports what DDA is doing. In response to Council Member Heffernan's question, City Attorney Burnham confirmed that this is just approving a grant and there is no liability to the City. Volume 55 - Page 26 INDEX BA -052 Designated Drivers Association (40) City of Newport Beach City Council Minutes March 11, 2003 Motion by Mavor Pro Tem RidLeway to approve a budget amendment (BA -052) in the amount of $15,000 from unappropriated General Fund Reserves, and move the $15,000 into account 010- 20 -0110- 8254. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Webb, Mayor Bromberg Noes: Adams Abstain: Nichols Absent: None 13. REQUEST FOR BUDGET AMENDMENT TO COVER EXPENSES ASSOCIATED WITH HIGH WORK DEMAND IN THE BUILDING DEPARTMENT. Council Member Heffernan reported that the staff report states that construction activity for the City is up 47% and that construction valuation for the first half of the fiscal year was almost $100 million. He stated that this puts a great load on the Building Department to review plans and issue permits, but believed they are handling it very well. He indicated that he is going to support the appropriation rather than have them wait to collect it to run the department. Mayor Pro Tem Ridgeway emphasized that this is revenue neutral because the fees will ultimately be collected. from people who are processing building plans. Dolores Otting stated that she has had the most wonderful experience dealing with the Building Department and commended Building Director Elbettar. She added that the City could not ask for a better group of devoted people who have a tremendous workload. She believed this is money well spent. Mayor Pro Tem Ridgeway reported that Mr. Elbettar was responsible for the streamlined approval process. Building Director Elbettar thanked Council and the City Manager for their support. City Manager Bludau reported that they expect anticipated revenues in excess of $250,000. Mayor Pro Tem Ridgeway indicated that last year was the only year the City did not break $200 million in construction. Mr. Elbetter reported that the City's valuation was $79 million in 1996, $145 million in 1997, and exceeded $200 million from then on. He added that, once Bonita Village was annexed, it went up to $300 million. He indicated that last year dropped to $198 million, but the City is back on the same pace. Motion by Council Member Heffernan to approve a budget amendment (BA -053) to appropriate $175,000 from unanticipated General Fund revenue to the Building Department's Professional and Technical expenditure account #2930 -8080. Volume 55 - Page 27 BA -053 Building Department (26/40) City of Newport Beach City Council Minutes March 11, 2003 LA L. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None PUBLIC COMMENTS Jim Hildreth stated that Tony Melum's temporary employment will be terminated by June 30, 2003. He indicated that he is asking for City documents concerning The Grand Canal and stated that it is his belief that Mr. Melum thinks that the City only has a harbor permit for a shore mooring in The Grand Canal. He referenced a letter from the City staff dated November 12, 1998 which states that the City has had and maintained records of the location for J.M. Hildreth as a residential pier mooring. He indicated that the City cannot find any other documents, even though Title 17 of the municipal code states that the City is supposed to be maintaining harbor permits. He noted that the City classifies docks, which are platforms and steps, as piers so there should be some documentation for the sites in The Grand Canal. He displayed a photo and believed that the City put up a ladder, but there was no reason for it. Further, the ladder was not insured. He added that the Public Works Director stated that it was unsafe for general public use. He stated that it is a City liability. Russell Niewiarowski thanked Council in advance for selecting Alternative 1 under Item 18 and asked that this be discussed after public comments since there are a lot of elderly people in the audience wanting to speak on it. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Ad Hoc General Plan Update Committee (GPUC). Council Member Adams reported that the subcommittee concluded its efforts on Monday and will be coming back to GPUC with recommendations on March 24. He indicated that the subcommittee is recommending that GPUC continue through the update process, meeting as needed, to give the whole process direction and oversight. Local Coastal Program Certification Committee. Mayor Pro Tem Ridgeway reported that they met last week and made final revisions after all the Department Directors made their comments. He noted that the most significant occurrence was that, because the City has a Certified Local Coastal Plan (LCP) in Newport Coast, it was suggested by the City Attorney that all references to that LCP be deleted because of potential inconsistencies with the newly proposed LCP and the impact that it might have on the development agreement with The Irvine Company and all the people of Newport Coast. He noted that this would be a major excising of the document and that the City will probably not meet the June 30 application deadline. Volume 55 - Page 28 "ZOO] City of Newport Beach City Council Minutes March 11, 2003 Newport Coast Advisory Committee. Council Member Heffernan reported that they met last Tuesday. He stated that the main item before them related to the amended preannexation agreement. He stated that they are trying to break down the pieces and assign it to the Newport Coast committee members. Redistricting Committee. Mayor Bromberg stated that he is on the committee with Council Members Heffernan and Webb. He indicated that it has become more interesting than when it was looked at a year ago because the City now has Newport Coast and soon Santa Ana Heights. He expressed his hope that the committee will bring back a recommendation in March or April. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 15. PLANNING COMMISSION AGENDA FOR MARCH 6, 2003. Regarding Item 1 (Balboa Inn Expansion), Assistant City Manager Wood reported that it was discovered that an elevator was needed and that the elevator tower, in order to comply with handicap accessibility requirements, made enough changes to the project that staff thought it might impact the Commission's findings with regard to the height of the building that was originally approved. She stated that it was brought back to the Commission and, at the first hearing, they expressed concern with the level of architectural detail on the building and the quality of the materials being used. She noted that the item was continued to March 6, the architect came back with improved renderings and material samples, and the Commission approved the project. Regarding Item 2 (813 East Balboa Boulevard), Ms. Wood indicated that the request is to change the general plan designation to residential. She reported that the Commission recommended initiation, so it will be coming before Council at the next meeting. Regarding Item 3 (Code Amendment Initiation), Ms. Wood reported that this will be coming before Council at the next meeting. She stated that this is to amend the City's provisions regarding the second unit to keep it up to date with changes in State law. Regarding Item 4 (General Plan Vision Statement), Ms. Wood reported that some of the Commissioners were uncomfortable with taking action on something they had not been involved in developing, but was comfortable with recommending that Council endorse it. This will come to Council at the next meeting. Regarding Council Member Nichols' question regarding the Thai Del Mar Restaurant in Corona del Mar, she reported that the Commission considered it on February 20, but they did not take action that night. She reported that it was continued to April 3. N. PUBLIC HEARING 16. CODE AMENDMENT CA 2002 -007 — LANDMARK BUILDINGS (PA 2002 -218) — AMENDMENT TO TITLE 20 OF THE NBMC TO Volume 55 - Page 29 INDEX [loo Report] City of Newport Beach City Council Minutes March 11, 2003 DESIGNATE CERTAIN TYPES OF BUILDINGS AS "LANDMARK BUILDINGS" AND MODIFY RESTRICTIONS ON NONCONFORMING USES IN LANDMARK BUILDINGS (contd. from 2/11/03). Motion by Mayor Pro Tern Ridgeway to continue to this item to March 25, 2003. The motion carried by the following roll call vote Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Mayor Bromberg Noes: None Abstain: Nichols Absent: None O. CONTINUED BUSINESS 18. 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 (contd. from 2/25/03). Mayor Pro Tem Ridgeway recused himself since he owns property on Santa Ana Avenue. City Manager Bludau utilized a PowerPoint presentation and reported that East Santa Ana Heights (SAH) and Bay Knolls will become part of the City on July 1. He stated that, at the December 17, 2002 study session, Council discussed the potential annexation of West SAH, the Santa Ana Country Club, and the unincorporated area south of Mesa Drive. He displayed an aerial view of Area 7 and West SAH, and an area summary after East SAH and Bay Knolls are annexed, and if Area 7 and the country club are annexed. Mr. Bludau reviewed the fiscal impact analysis and stated that the estimated revenues for fiscal year 2004 -05 would be about $1.5 million because of redevelopment agency (RDA) proceeds, but expenditures would be pretty minimal. He believed that the City would realize about $90,000 in excess revenues over expenditures. He reported that public safety would be provided by the City's police and fire departments, utilities would remain the same, public works would be done by the RDA, and the City would provide planning, building, library, parks, and recreation services. Mr. Bludau noted that these areas are still in Costa Mesa's sphere of influence, Area 7 is in redevelopment, and the City has not attempted to annex areas still within its neighbors' sphere. He indicated that staff has talked with Costa Mesa's staff and they are comfortable with moving forward as long as the City keeps them informed. He explained that redevelopment diverts growth in property taxes to the Orange County Redevelopment Agency to fund physical improvements and that it would be wise for the City to consider administering the redevelopment area. He believed that the City would spend the money faster than the County Volume 55 - Page 30 INDEX West Santa Ana Heights /Santa Ana Country Club Annexation (21) City of Newport Beach City Council Minutes March 11, 2003 INDEX and put in needed physical improvements that are to the same standards as the rest of the City. He noted that RDA money must be spent in the project area. Mr. Bludau reported that the SAH Project Area Committee (PAC) needs to be part of any discussion about the City taking over redevelopment responsibilities, but indicated that staff did not feel comfortable talking directly with the PAC until they received Council direction. He stated that Council also needs to think about whether annexing the area gives the City advantage regarding John Wayne Airport (JWA) expansion. He noted that the City Attorney does not think so. He added that the JWA Director, Alan Murphy, asked the City not to attempt to annex the portion of Costa Mesa's sphere of influence that intersects the Runway Protection Zone (RPZ). Assistant City Manager Kiff displayed the RPZ and reported that Mr. Murphy is reluctant to support an annexation by the City that would affect the RPZ. Mr. Bludau noted that some of the boundaries of the RDA area include some Newport Beach areas. Mayor Bromberg asked whether the City would need to hire additional staff if annexation occurs and if RDA money can be used for this. Mr. Bludau stated that RDA money can be used for staff members that are allocated for redevelopment purposes. Mr. Bludau asked if the City should move forward with the annexation. He stated that, if this is the direction, staff believes that the City should look at assuming the redevelopment area and forming an RDA. Mr. Kiff clarified that, when he refers to Area 7, it includes West SAH, the area south of Mesa Drive, and the country club. In response to Council Member Proctor's questions, Mr. Kiff stated that the RPZ is included in tonight's estimates. City Attorney Burnham believed that Mr. Murphy's concern is that he wants to maintain control over any obstruction or encroachment in the RPZ. He stated that the Airport Land Use Commission does not have the authority to prevent the City from authorizing any structures in the area. However, the Federal Aviation Administration (FAA) might have this authority. He stated that Mr. Murphy would be opposed to the annexation if the RPZ is included and would probably make an effort to convince the Board of Supervisors not to support the annexation and the transfer of the RDA. Mr. Bludau asked what specific territories should be included in the annexation and where should the boundaries be drawn. He noted that the country club and Mesa Drive areas protested out of Costa Mesa's sphere, and West SAH was not included in Costa Mesa's annexation because LAFCO did not feel confident that it would go forward. Mr. Kiff displayed the annexation area south of University Drive and believed it would not make sense for the City to annex the area because there is no clean line from a map or service delivery perspective. He noted that these areas would involve a detachment from Costa Mesa, but pointed out that this was done with Bay Knolls. Volume 55 - Page 31 City of Newport Beach City Council Minutes March 11, 2003 INDEX In response to Council Member Nichols' question regarding the RPZ, Mr. Kiff confirmed that the City is not planning to give up any of its property and does not see the area going to Costa Mesa. Mr. Burnham clarified that the property is owned by the County and does not believe Costa Mesa could annex it without the County's consent. Council Member Webb asked if the City could change the RPZ into its sphere of influence from Costa Mesa's sphere of influence. Council Member Webb indicated that it would be his preference, if the City is considering annexing anything south of University Drive, that the two Costa Mesa areas be deannexed from Costa Mesa into Newport Beach to make a logical boundary. He stated that the boundary should be University Drive if this cannot happen. Mr. Bludau reported that LAFCO meets tomorrow, prezoning starts May 2003, the resolution of intention will be before Council June 2003, there could be a LAFCO hearing September 2003, the protest period would end December 2003, and the annexation could become effective July 2004. He noted that redevelopment planning would need to start now. He stated that people can get more information by logging onto www.oclafco.ca.aov, www citv.newoort- beach.ca.us, www.leginfo.ca.us, www.sah-oac.com, or calling (714) 834 -2556 or (949) 644 -3002. In response to Mayor Bromberg's question, Mr. Kiff indicated that, if the City did take on the RDA, it would want the redevelopment that covers the eastern side. He stated that East SAH would become a redevelopment area, but the City could not administer it unless it took over the RDA. He indicated that the recommendation was framed so the whole project area was considered. Council Member Adams apologized to Roger Summers, PAC Chair, because Mr. Summers called him a couple of times late last week but he did not pick up messages at his office until late this afternoon. He stated that he was hoping to meet with him before tonight but is anxious to meet or talk on the phone. Russell Niewiarowski stated that former Council Member O'Neil told him to see if he could convince Costa Mesa to change its sphere of influence. He noted that he did not officially get Costa Mesa to agree to do this, but was told by the former Mayor of Costa Mesa that they would follow whatever LAFCO decided. He indicated that the final answer is left to Council. He believed that the community has always supported being in Newport Beach and will support the annexation. He requested that Council consider putting the rest of the RPZ into the City since Costa Mesa has no interest in Bristol Street. He believed that, since RDA money can be spent in that area, Mr. Murphy would support the City maintaining it. Further, this way the City could control the RPZ area with a conditional use. He requested that some of the residents be appointed to the RDA since the PAC is County- appointed with no term limits. He noted that there is currently almost no code enforcement. He stated that he would like residents to be a part of the visioning process. He suggested removing one of the sailboats in the City seal and Volume 55 - Page 32 City of Newport Beach City Council Minutes March 11, 2003 replacing it with a horse. DOM Cal McLaughlin stated that he lives south of Mesa Drive and that he was chair of the petition committee which protested out of Costa Mesa. He reported that 77% of the registered voters in the area signed the petition which basically states they would rather be in Newport Beach, but noted that 5% want to stay in Costa Mesa. He stated that the City should not worry about treading on Costa Mesa's turf because the protest has essentially removed this area from Costa Mesa. Robert Hanley believed that West SAH is an asset and the buffer zone between the City and JWA. He emphasized that West SAH has always had over a 90% protest for the past three years. He agreed that Costa Mesa said they would abide by LAFCO's decision and believed they have decided. Regarding RDA money, he stated that the City would receive the money from their taxes. He indicated that they feel strongly that they should control their destiny with regard to the RDA money going back to them via the City. Paul Watkins stated that he serves on the annexation committee for the Santa Ana Country Club and reported that they are supportive of Alternative 1. He indicated that he was pleased to hear that things look favorable with Costa Mesa as long as they are kept informed. He thanked the City Manager, Mr. Kiff, and Council for getting things underway since it has been long overdue. Roger Summers, Santa Ana Heights Project Area Committee (PAC) Chair, reported that LAFCO member Bob Aldrich is in attendance tonight and that Mr. Aldrich has been supportive of this process. He stated that part of their concerns deal with the RDA and the specific plan area that are overlayed and that, if a portion of the area were to go to Costa Mesa, they would have two cities to deal with. He indicated that there is no one more affected by JWA than SAH residents. Mr. Summers stated that he likes Council Member Webb's suggestion regarding the area south of Mesa Drive. He indicated that SAH has an unusual RDA because it has money. He reported that they pay about $4 million a year because of the bankruptcy and have paid about $2 million for the Interpretive Center. He stated that their money has been spent on a number of different things and are continuing to be spent, but they would like to see it spent a little faster and continue to have influence and input on where the money is spent. He added that they need a fire station and are interested in also helping with that. Mr. Summers reported that the PAC is made up of 12 members that represent various areas throughout the RDA area and have term limits, but can be reappointed by the Board of Supervisors. John Fay stated that he lives south of Mesa Drive and that an overwhelming majority of his neighbors said they want to be a part of Newport Beach. He believed that Council should look closely at them because they made their say that being a part of Costa Mesa was not what they felt was in the best interest for the area. Volume 55 - Page 33 City of Newport Beach City Council Minutes March 11, 2003 Reed Robinson stated that everyone he has spoken to in his neighborhood is very interested in going to Newport Beach and not at all interested in going to Costa Mesa. He indicated that, aside from the property value factor, people can drive to and from the two cities and see which city is run better. Further, Newport Beach has been more active in opposing a JWA expansion which would directly affect them. He stated that SAH would also add a couple hundred trees into the City. Motion by Council Member Webb to (A) direct the City Manager to proceed with City- County -PAC discussions associated with the transfer of redevelopment authority for Area 7 and East SAH and report back to the Council on progress with the County prior to making any application to OC LAFCO regarding any annexation of this area; (B) authorize the Mayor to send a letter to LAFCO stating the City's interest in filing a Resolution of Application to annex West Santa Ana Heights; the Santa Ana Country Club; and/or the unincorporated areas south of Mesa Drive assuming that the City can also assume redevelopment responsibilities for the area; (C) direct the City Manager to work with stakeholders like the City of Costa Mesa, the Santa Ana Heights Project Area Committee (PAC), the JWA Airport Director, and interested residents and businesses on any annexation action; (D) direct staff to look into changing the sphere of influence of the Runway Protection Zone (RPZ); and (E) direct staff to look into having Costa Mesa de -annex the two portions situated in the proposed annexation area for the boundary or, if those areas cannot be de- annexed, make University Drive the boundary. In response to Council Member Webb's question regarding the de- annexation of the two pieces, Mr. Kiff believed that everything is on the table and Costa Mesa can see the problem with how the area is bound. Council Member Nichols noted that the area south of Mesa Drive has already stated that they prefer to be a part of Newport Beach and believed that there is no reason not to take the whole area. Substitute motion by Council Member Nichols to annex the areas as proposed even if de- annexation does not occur. The motion died for lack of a second. Council Member Webb's motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: Ridgeway Absent: None 19. APPOINTMENTS BY THE CITY COUNCIL TO ENVIRONMENTAL QUALITY AFFAIRS CITIZENS ADVISORY COMMITTEE, COASTAL/BAY WATER QUALITY CITIZENS ADVISORY COMMITTEE AND THE AVIATION COMMITTEE (contd. from 2/11/03). Volume 55 - Page 34 INDEX EQAC, Coastal/Bay Water Quality, Aviation Committee Appointments (24) City of Newport Beach City Council Minutes March 11, 2003 INDEX Motion by—Council Member Adams to confirm the Following appointments to the Environmental Quality Affairs Citizens Advisory Committee, Coastal/Bay Water Quality Citizens Advisory Committee, and Aviation Committee, as announced by each Council Member: Environmental Quality Affairs Citizens Affairs Committee (District 3) Council Member Webb's reappointment of and Chris Welsh (at -large member). (District 4) Council Member Adams' appointment of (regular member). (District 5) Mayor Bromberg's appointment of (regular member). (District 6) Council Member Nichols' appointment of and (at -large member). (District 7) Council Member Heffernan's appointment of Dolores Ottine (regular member). Coastal/Bav Water Qualitv Citizens Affairs Committee (District 3) Council Member Webb's reappointment of Qeorge Drayton. (District 6) Council Member Nichols' appointment of Peter Oeth. Aviation Committee (District 1) Mayor Pro Tern Ridgeway's appointment of Dan Gilliland and (alternate). (District 2) Council Member Proctor's appointment of Eleanor Todd and Gerald Scarboro (alternate). (District 3) Council Member Webb's appointment of Tom Anderson and (alternate). (District 4) Council Member Adams' appointment of Bonnie O'Neil and (alternate). (District 6) Council Member Nichols' appointment of Shirley Conger and (alternate). (District 7) Council Member Heffernaris appointment of Suzanne Casey. Volume 55 - Page 35 City of Newport Beach City Council Minutes March 11, 2003 The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Mayor Bromberg Noes: Nichols Abstain: None Absent: None 20. REFILLING OF VACANCIES ON THE GENERAL PLAN ADVISORY COMMITTEE (GPAC). Assistant City Manager Wood referenced Exhibit A of the staff report and indicated that the yellow boxes denote vacancies. She reported that the General Plan Update Committee (GPUC) discussed Joe Gleason's position on GPAC who was interested in continuing to serve but was having difficulty attending because of his job. She stated that GPUC recommends that he be replaced but keep him first on the list if future vacancies occur. Regarding the District 6 at -large representative, she noted that they could not narrow down the list so there are three names shown in red, but there are only two vacancies. Regarding the "Older Commercial Area" vacancy, she stated that staff has been unable to confirm whether Traies Johannessen is interested and will need a new name for that position. As the Chair of GPUC, Council Member Adams recommended that this be sent back to GPUC. The following straw vote was taken for the District 6 at -large representative position: Council Member Nichols — Patrick Bartolic Council Member Webb — Dennis Baker and Lucille Kuehn Council Member Adams — Dennis Baker and Lucille Kuehn Mayor Pro Tem Ridgeway — Patrick Bartolic and Lucille Kuehn Council Member Proctor — Patrick Bartolic and Lucille Kuehn Council Member Heffernan — Dennis Baker and Lucille Kuehn Mayor Bromberg — Patrick Bartolic and Lucille Kuehn Motion by Council Member Adams to 1) approve GPUC's recommendation of Gus Chabre to represent the "Circulation" area; Grace Dove to represent the "Parking" area; Alex Kakavas and Charles Remley for the two vacancies in District 1; Kim Jansma for the vacancy in District 2; and James Schmiesing for the vacancy in District 7; select Patrick Bartolic and Lucille Kuehn for the two vacancies in District 6; and refer the vacant position representing the "Older Commercial Area" back to GPUC. The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None Volume 55 - Page 36 INDEX General Plan Advisory Committee (GPAC) (24) City of Newport Beach City Council Minutes March 11, 2003 21. MARINAPARK RESORT PROJECT - PROPOSED AMENDMENT TO SUTHERLAND TALLA HOSPITALITY AGREEMENT. City Attorney Burnham reported that, at the last Council meeting, Council directed the City Attorney to prepare amendments to the existing Sutherland Talla Hospitality (STH) agreement so an Environmental Impact Report (EIR) for the project is prepared and a process where the project would be submitted to the voters at a regular election after the EIR is certified is established. Council Member Heffernan asked if the City is going to try to target the November 2004 election. Mr. Burnham believed that this was Council's preference at the last meeting; however, the agreement does not mandate that as the date. He indicated that it is up to Council when this will go before the voters, but the wording now leans toward any regular election date as defined in the Elections Code. He clarified that voters will be voting on amendments to the land use element of the General Plan and the land use plan of the Local Coastal Program (LCP), not on the EIR since this is a decision made by the lead agency and is not subject to voter approval. Mr. Burnham believed that the public will have more detail with this process since there will be a full EIR and a fiscal impact report prior to the election that is not necessarily a component of a typical General Plan process. Further, he believed that Council will be aggressive in its outreach in terms of the project impacts. Council Member Heffernan asked how the ground lease will be woven into the financial analysis. Mr. Burnham reported that the amended agreement would allow Council to designate a committee to discuss basic deal points with STH prior to the election and allow an independent consultant who is retained by the City to draw objective conclusions as to what revenue the project will generate and whether a particular term or condition of the lease would make it feasible or not. Council :Member Heffernan believed that, unless the ground lease is defined, it is difficult to do financial analysis on the project. Mr. Burnham noted that the amended agreement does not differ from the original agreement in that regard, but establishes parameters and states that the City would look at the Balboa Bay Club (BBC) lease but will not be bound by the terms and conditions of that lease because those discussions included the leasehold advantage the BBC had as a result of them having 16 years remaining. He added that he believes Council wants to engage in discussions with STH prior to the election so there is a better idea of what the terms and conditions of the lease are assuming approval. Further, since Council has an obligation to negotiate in good faith with STH, the ground lease must have terms and conditions that make it economically feasible. If approved, Council Member Heffernan asked what limitations are imposed on Council and the Planning Commission in its review and approval of the project. Mr. Burnham stated that the Commission would probably be out of the discussions at that point, but Council would have full discretion when it negotiates the terms and conditions of the lease to decide what the project would look like. He indicated that the only constraints are that Council could not authorize the construction of a project that was not evaluated in the EIR to a Volume 55 - Page 37 C -3389 Sutherland Talla Hospitality/ Marinapark Resort Project (38) City of Newport Beach City Council Minutes March 11, 2003 INDEX project level of detail without doing supplemental environmental documentation and Council has the obligation to negotiate the terms and conditions of a ground lease in good faith that would allow the project to be constructed and the property to be redeveloped. Council Member Heffernan expressed concern about getting fair market value for the rent under that constraint. Mr. Burnham noted that the EIR is not going to discuss the economics of the project, but will establish an envelope for the size and uses of the facility. He emphasized that, if the EIR evaluates a 110 room resort, the City could not approve a lease for a larger project without supplemental environmental documentation. Tom Hyans noted that Section A of the recitals mentions Marinapark, but it is only one entity on the property. He requested that Section B be amended to include Las Arenas Park, the community center, and the basketball court. He referenced Sections IV.A, IV.B, and IV.D of the Negotiation of Optiom(Lease and believed that all of the information that is supposed to be available to the voters is not going to be made available until after the election. Mr. Burnham reported that there is not going to be a change to the Las Arenas Park, which includes the tennis courts. He noted that the community center will be reconstructed, but he can list them and the basketball courts in the recital. He reported that the information that STH is required to provide before formal lease negotiations commences is relatively detailed and that he did not carry that requirement into the preliminary discussions, but Council can ask STH to provide some or all the information it would normally get before it commences formal negotiations when it is engaged in the preliminary discussions. Phil Arst stated that he is delighted a vote will take place on this project. He believed that the vote can take place: 1) how it is stated in the staff report, 2) STH can call for an initiative that would not require an EIR, or 3) through a Greenlight vote. He expressed the opinion that a Greenlight vote is required and that all its steps should be taken since they contend that the site in the General Plan calls for zero square footage for public parkland but 110,000 square feet will be added. He asked that there be consideration for keeping this from being protested or keep it so it meets all of what a Greenlight vote would have done. He indicated that he supports what Council Member Heffernan and Mr. Hyans have said, noting that the lease is not signed until after the election but the voters will not have all the information about what will be done. He stated that it would be very helpful to the public if there was a development agreement that pins all this down. Regarding traffic and parking, he believed that there will be 250 employees who will be bussed to the site but asked what the guarantees are that this will happen. He stated that he has read that hotel construction is down in Orange County and believed that STH will have a hard time meeting the estimates made a couple of years ago. He indicated that, if the City is going to convert parkland, it should have some guarantees. Mr. Arst noted that there are three projects that call for conversion of City parkland to other uses, but reported that the Greenlight Steering Committee is in support of the St. Mark's Church and the Senior Citizens Housing being built on City parkland. He believed that the Volume 55 - Page 38 City of Newport Beach City Council Minutes March 11, 2003 INDEX STH use is taking too much out of an inadequate supply and that this project would be best included in the General Plan Update where a comprehensive look at public parkland can be conducted. Mayor Bromberg reported that counsel has advised them that this does not require a Greenlight vote. He noted that Greenlight scrutiny would not come close to the scrutiny it will be under when it comes to a vote through this process. Further, a Greenlight vote would not have an EIR, the number of public reviews and meetings that would take place, or a fiscal impact report. Dolores Otting asked if financial information will be provided before the election regarding what the project will cost and what revenue the City will receive. She also asked if a bond is needed. She noted that the lease will be similar to BBC's lease, but reported that the Closed Session agendas talk about the bifurcation of the BBC lease. She expressed concern about the term and that the City Manager can extend the lease. She believed that any extension should come before Council. Mr. Burnham reported that the agreement requires the preparation of a fiscal impact analysis so STH can provide the City with information that the contract administrator requires. Further, the City is going to conduct an independent analysis of the information. He clarified that the City is committing in advance to providing the voters with more information than is typically provided to voters in the context of a General Plan Amendment. Regarding Mr. Arst's comments, he stated that the City cannot enter into a development agreement with anyone who does not have an equitable or legal interest in the property. He indicated that, until there is a lease, STH does not have an equitable interest. He added that the City can accomplish everything that would normally be accomplished through a development agreement and more through the terms of the lease. He reported that there will be an environmental document that will describe the project and contain mitigation measures that will probably be integrated into the lease. This will give the City an enforcement mechanism through the lease and a mitigation monitoring plan. Regarding the parkland comments, Mr. Burnham emphasized that this site has been improved as a mobile home park for the last 40 years and that the resort will be constructed on the site of the mobile home park and will not extend into the tennis courts or community center except for subterranean parking. Steven Sutherland, Sutherland Talla Hospitality partner, stated that there is a half basketball court on the site that will not be replaced. He reported that there are currently four tennis courts, two of which are lit, but the plan will have four new tennis courts that are all lit; the Girl Scout House and the community center will be rebuilt; the existing public parking lot on 18ffi Street and West Balboa Boulevard will be redone, landscaped, and bermed with the same number of metered parking stalls. He added that it is his understanding that there will be discussions about the terms of the lease prior to the election so the residents will know the economic benefits of the ground lease, transient occupancy tax, and other taxes involved in the project. He indicated Volume 55 - Page 39 City of Newport Beach City Council Minutes March 11, 2003 INDEX that the hours of the tennis court, public beach use, etc. are available in the Planned Community Text that was submitted to the City on January 13. He clarified that the project will not have 250 employees, but only 70 employees at one time during the busiest times of the day for the 110 room, 3,500 square foot ballroom /meeting space, and two small restaurant facilities. He confirmed that the employees will be shuttled in and out by a van, and that they will work to have off -site parking off the peninsula. Regarding the Measure S requirements, he reported that Greenlight's website (www.greenlight.com) states that this project will most likely be exempt from a Greenlight vote. He added that the Measure S guidelines state that a vote is triggered for hotels and boat docks solely by peak hour traffic generation, but noted that this project is under the 100 additional peak hour trips. He stated that he believes this should go to a vote and requested that the amended agreement be approved. Council Member Webb noted that the tennis courts are constructed at the back of a four foot wide sidewalk and the landscape setbacks between the back of the sidewalk and tennis courts are 20 feet and 25 feet. He expressed concern that, since the tennis courts are going to be constructed on top of the parking structure which will be five feet high and the tennis court fences will be ten feet, there will be a 15 foot wall of fence immediately behind a four foot sidewalk without any ability to put in landscaping. He stated that he would like to see STH's options include at least the same setbacks for landscaping. Mr. Sutherland believed that the tennis courts will be set back about five feet, the concrete deck of the tennis court will be elevated three feet above the existing grade, and the tennis court screens will be about ten feet. He reported that the five foot setback will be heavily bermed and landscaped. Council Member Webb asked that they look at trying to maintain the same type of buffer that currently exists since it is a park area, noting that a five foot setback is barely what there would be on a structure along Balboa Boulevard. Mr. Sutherland indicated that one of the problems is that the tennis courts are 120 feet and there is an 85 foot setback from the mean high tideline, which means they would need to encroach one way or the other since the large property will be reduced due to the three acres for the park, two acres for the beach, and four acres for the hotel. He stated that he could sit with Council Member Webb to discuss the plans. Regarding the assignment rights (Section XI.B), Council Member Heffernan asked what the conditions might be and if there is any concern on the City's part that the assignment be constrained. Mr. Burnham stated that he assumes that this would be similar to the criteria in the BBC lease and would be part of the decision as to whether Council should withhold its consent if reasonable. Council Member Adams suggested that this be made at Council's discretion so assignment comes back to Council. Motion by Mavor Pro Tem RidLreway to approve the amended agreement between the City and Sutherland Talla Hospitality (STH). Volume 55 - Page 40 City of Newport Beach City Council Minutes March 11, 2003 The motion carried by the following roll call vote: Ayes: Heffernan, Proctor, Ridgeway, Adams, Webb, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: None P. MOTION FOR RECONSIDERATION - None. Q. ADJOURNMENT - at 11:05 p.m. in memory of Frank Giovinetti. The agenda for the Regular Meeting was posted on March 5, 2003, at 4:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on March 7, 2003, at 2:45 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 41 ffJITD11