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HomeMy WebLinkAboutC-8230-1 - MOU to Provide Lower-Cost Overnight Accommodation OpportunitiesMEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE CALIFORNIA COASTAL COMMISSION TO PROVIDE LOWER-COST OVERNIGHT ACCOMMODATION OPPORTUNITIES This Memorandum of Understanding ("MOU") is entered into on 9 iS .Aplb 2016, by and between the City of Newport Beach, a California municipal corporation and charter city ("City") and the California Coastal Commission, a California public agency ("Commission"), through its duly elected, appointed, qualified, or acting representatives. The Commission and the City may hereinafter be referred to individually as "Party" or collectively as the "Parties." RECITALS A. The City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. The Commission is a California public agency created and validly existing under the authority of California Public Resources Code Sections 30300 et seq. C. On February 17, 2016, the Commission issued to Olson Real Estate Group, Inc., d.b.a. R.D. Olson Development ("R.D. Olson"), a corrected Coastal Development Permit, (Permit Application No. 5-14-1785) ("Permit") attached hereto and incorporated herein by reference as Exhibit "A," regarding the development taking place within the coastal zone at 3300 Newport Boulevard, Newport Beach, California, County of Orange, Assessor's Parcel Number 423-111-02. D. Pursuant to the Permit's Special Condition Number 6, Lower Cost Overnight Accommodations Mitigation ("Special Condition No. 6"), the Parties desire to enter into this MOU to memorialize the Commission's acceptance of the City's intent to use the in -lieu mitigation fee, for the purposes of providing lower-cost overnight accommodation opportunities in conjunction with an outdoor youth educational program in the vicinity of Newport Beach or greater Orange County ("Fostering interest in Nature'FiiN' Program"). NOW, THEREFORE, it is mutually agreed by and between the undersigned Parties as follows: 1. FiiN PROGRAM FUNDS 1.1 On November 24, 2015, the City created a restricted and interest-bearing special revenue fund for the FiiN Program with an initial deposit of Nine Hundred Seventy -Five Thousand Dollars ($975,000). The interest-bearing special revenue fund is restricted by the terms of Special Condition No. 6 and this MOU. On February 4, 2016, R.D. Olson deposited Four Hundred Forty Thousand Two Hundred and Thirty- M Two Dollars ($440,232) into the interest-bearing special revenue fund for a total of One Million Four Hundred Fifteen Thousand Two Hundred Thirty -Two Dollars ($1,415,232) ("Funds"). Prior to the issuance of the Permit, the Commission's Executive Director ("Executive Director') approved the City to manage the Funds in support of the FiiN Program. 1.2 The Funds, and any accrued interest attributable to the Funds, shall be used solely for the FiiN Program in consultation with the Executive Director pursuant to this MOU. Any development paid for by the Funds requires review and approval of the Executive Director and a coastal development permit ("CDP"), if a CDP is required. 1.3 The Funds, and any accrued interest attributable to the Funds, shall be used in their entirety within ten (10) years of February 4, 2016, the day when the balance of the Funds were deposited into the interest-bearing special revenue fund established and managed by the City. If any portion of the Funds or accrued interest therefrom remain in the account after ten (10) years and the Executive Director determines the Funds and accrued interest should be reassigned, those Funds and interest shall be donated to an agency or non-profit entity, to be selected by the Executive Director, providing lower cost overnight accommodations in the Southern California coastal zone to be used for purposes allowed in the Permit. 1.4 Six (6) months prior to the RN Program's commencement, the City shall submit to the Executive Director the FiiN Program's budget, which will include the proposed schedule, programming, and costs for review and approval. The approved FiiN Program term may be for one (1) year or multiple years. All Funds expenditures shall be consistent with the approved FiiN Program. Following budget approval by the Executive Director, unforeseen or unbudgeted expenditures exceeding One Thousand Dollars ($1,000) arising in a single year shall be submitted to the Executive Director for review and approval. The Executive Director shall determine in writing whether or not the proposed use of the Funds is consistent with the terms, intent and purpose of Special Condition No. 6, prior to the expenditure of Funds by the City. 2. FUN Program Components 2.1 Consistent with Special Condition No. 6 the FiiN Program includes, but is not necessarily limited to, the following: 2.1.1 Overnight accommodations and educational and recreational opportunities for disadvantaged youth from Title 1 schools, as defined in the Elementary and Secondary Education Act, as amended, by providing an outdoor camp -like experience during the academic school year; 2.1.2 The Funds for the FiiN Program will provide for the expenses directly related to the overnight stays and coastal -dependent educational, and recreational opportunities, including but not limited to, environmental California Coastal Commission MOU education activities, transportation, food, lodging, kayaking, boating, swimming, or surfing, etc.; 2.1.3 The City shall expend no more than five percent (5%) of the Funds for City staff administration costs (i.e., accounting of Funds, legal support, staff oversight of FiiN Program vendors, etc.) to manage the FiiN Program annually. This five percent (5%) limitation does not apply to direct HN Program operation costs; 2.1.4 The FiiN Program will serve a minimum of three hundred fifty (350) students per year, provide a minimum of three (3) night stays, and will operate a minimum of ten (10) years from the commencement of the FiiN Program based upon the initial Funds; 2.1.5 The outdoor educational component will focus on ocean safety, coastal and marine ecology, coastal hazards, and/or other coastal - related topics and the HN Program will include water -oriented recreational activities such as kayaking, boating, swimming or surfing, etc.; 2.1.6 An annual report, submitted on the anniversary of the first day of FiiN Program's commencement (when students show up for the first day of the first program offered), on the FON Program's accomplishments and finances, as well as any recommended changes and/or expansions to the FiiN Program, shall be transmitted to the Executive Director for the first ten (10) years of the FiiN Program, or for as long as the Funds last, whichever is longer; and 2.1.7 The FiiN Program may be expanded to accommodate more students, and/or more camp sites, and/or more seasons of the year, and may be extended past the initial ten (10) years if existing Funds allow or additional funding is available. Expansion and/or other changes to the FiiN Program are subject to the review and approval of the Executive Director, or the Coastal Commission itself if the Executive Director determines an amendment or a new CDP is required. 2.2 The FiiN Program will be administered by the City's Recreation and Senior Services Department. California Coastal Commission MOU 2.3 The City shall obtain all necessary regulatory permits and approvals for the FiiN Program, including but not limited to a CDP if required by the California Coastal Act. 2.4 The City shall commence and operate the FiiN Program within thirty-six (36) months of the Effective Date of this MOU, defined as the date on which the last signatory has signed the MOU. 2.5 The Executive Director may extend any of the deadlines in Sections 1 or 2 of this MOU, in writing, for good cause. 3. NOTICES All notices, demands, requests or approvals to be given under the terms of this MOU shall be given in writin `�q and conclusively shall be deemed served when delivered personally, or on the third (3 business business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Commission to City shall be addressed to City at: Attention: Recreation & Senior Services Director City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 WITH A COPY TO: Attention: Community Development Director City of Newport Beach 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658 All notices, demands, requests or approvals from City to Commission shall be addressed to Commission at: Attention: Executive Director California Coastal Commission South Coast District Office 200 Oceangate, 10th Floor Long Beach, CA 90802 4. STANDARD PROVISIONS 4.1 Recitals. The Parties acknowledge the Recitals in this MOU are true and correct and are hereby incorporated by reference into this MOU. California Coastal Commission MOU 4.2 Compliance with all Laws. The Parties shall, at their own cost and expense, comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 4.3 Waiver. A waiver by either Party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 4.4 Integrated Contract. This MOU represents the full and complete understanding of every kind or nature whatsoever between the Parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 4.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this MOU and any Exhibit to this MOU, the terms of this MOU shall govern. 4.6 Interpretation. The terms of this MOU shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of the MOU or any other rule of construction which might otherwise apply. 4.7 Amendments. This MOU may be modified or amended only by a written document executed by both Parties and approved as to form by the City Attorney. 4.8 Severability. If any term or portion of this MOU is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this MOU shall continue in full force and effect. 4.9 Controlling Law and Venue. The laws of the State of California shall govern this MOU and all matters relating to it and any action brought relating to this MOU shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 4.10 No Attorneys' Fees. In the event of any dispute or legal action arising under this MOU, the prevailing Party shall not be entitled to attorneys' fees. 4.11 Counterparts. This MOU may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. 4.12 Authority to Enter Into Agreement. The Parties warrant that they are duly authorized to enter into this MOU and perform their obligations hereunder, and have received all necessary third party consents and approvals to perform such obligations. California Coastal Commission MOU IN WITNESS WHEREOF, the Parties have caused this MOU to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: t By:. Aaron C. Harp City Attorney ATTEST: Date: �. By:. Q& 1t Leilani I. Brown City Clerk Attachment: CITY OF NEWPORT BEACH, A California municipal corporation and charter city Date: a'-1 F 14 By: Da iff City Manager CALIFORNIA COASTAL COMMISSION, A California public resources agency Date: 741 S/.Z 016-- xecutive Director - /f c .tib j o /(,V 4 i.✓S zr o., 7/f Exhibit A - Corrected Coastal Development Permit No. 5-14- 1785 [END OF SIGNATURES] California Coastal Commission MOU EXHIBIT A CORRECTED COASTAL DEVELOPMENT PERMIT NO. 5-14-1785 California Coastal Commission Page A-1 Intentionally Blank California Coastal Commission MOU 1 STATE OF CA ORMA-NANML RCSOURCES AGQ Cy EDMUND G BROWN, IR., GOY OR CALIFORNIA COASTAL COMMISSION som COAST DISTRICT Mla 200 OCEAHGATE, 10TH MOM LONG BEACH, MWOR2.TA 90/024416 PH (562)590.1071 FA% (562)590-5094 WWW C5Ml CA -MY Page i February 17, 2016 Permit Application No.: 5-14-1785 Corrected COASTAL DEVELOPMENT PERMIT On October 7, 2015, the California Coastal Commission granted to Olson Real Estate Group, Inc., Dba R. D. Olson Development this permit subject to the attached Standard and Special conditions, for development consisting of Demolish the existing public facilities structure (former City Hall) and construct a new 4 -story (up to 65 feet high), 130 -room hotel, with 85E sq. ft. of retail and 148 parking spaces. Reconfigure the public street parking on 32nd street. 6,640 cubic yards of grading, more specifically described in the application filed in the Commission offices. The development is within the coastal zone at: 3300 Newport Blvd, Newport Beach (Orange County) (APN(s): 423-111-02) Issued on behalf of the California Coastal Commission by Charles Lester Executive Director Amber Dobson Coastal Program Analyst ACKNOWLEDGMENT: The undersigned permittee acknowledges receipt of this permit and agrees to abide by all terms and conditions thereof. The undersigned permittee acknowledges that Government Code Section 818.4 which states in pertinent part of that: "A Public entity is not liable for injury caused by the issuance... of any permit..." applies to the issuance of this permit. IMPORTANT: THIS PERMIT IS NOT VALID UNLESS AND UNTIL A COPY OF THE PERMIT WITH THE SIGNED ACKNOWLEDGEMENT HAS BEEN RETURNED TO THE COMMISSION OFFICE. 14 Cal. Admin. Code Section 13158(a). Page 2 W. February 17, 2016 Permit Application No.: 5-14-1785 COASTAL DEVELOPMENT PERMIT Date: Signature STANDARD CONDITIONS: Notice of Receipt and Acknowledgment. The permit is not valid and development shall not commence until a copy of the permit, signed by the permittee or authorized agent, acknowledging receipt of the permit and acceptance of the terms and conditions, is returned to the Commission office. Expiration. If development has not commenced, the permit will expire two years from the date on which the Commission voted on the application. Development shall be pursued in a diligent manner and completed in a reasonable period of time. Application for extension of the permit must be made prior to the expiration date. Interpretation. Any questions of intent or interpretation of any condition will he resolved by the Executive Director or the Commission. 4. Assignment. The permit may be assigned to any qualified person, provided assignee files with the Commission an affidavit accepting all terms and conditions of the permit. 5. Terms and Conditions Run with the Land. These terms and conditions shall be perpetual, and it is the intention of the Commission and the permittee to bind all future owners and possessors of the subject property to the terms and conditions. SPECIAL CONDITIONS: This permit is granted subject to the following special conditions: 1. FUTURE DEVELOPMENT This permit is only for the development described in Coastal Development Permit 5-14-1785: a 130 -room hotel with a maximum gross floor area of 98,725 square feet, including meeting space, retail floor area, restaurants, and a roof top bar. Pursuant to Title 14 California Code of Regulations section 13253(b)(6), the exemptions otherwise provided in Public Resources Code section 30610 (b) shall not apply to the development governed by the coastal development permit No. 5-14-1785. Accordingly, any future improvements to the structure authorized by this permit, including but not limited to changes in square footage or height of the hotel, conversion of common space, lobbies, or storage areas to guest rooms and vice versa, number of guest rooms, number of on-site parking spaces, and repair and maintenance identified as requiring a permit in Public Resources section 30610(d) and Title 14 California Code of Regulations sections 13252(a) -(b), shall require an amendment to Permit 5-14-1785 from the Commission or Page 3 February 17, 2016 Permit Application No.: 5-14-1785 COASTAL DEVELOPMENT PERMIT shall require an additional coastal development permit from the Commission or from the applicable certified local government. 2. PARKING AND TRANSPORTATION PLANS A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant shall provide for review and approval by the Executive Director, a transportation demand management program as follows: (1) The applicant shall provide and maintain a minimum of 148 parking stalls on the site to serve the approved development. Valet parking service is allowed in order to increase the number of vehicles that can be stored on the site. All available parking shall be shared among and equally available to all of the patrons, employees, and other users of the buildings, and no parking spaces shall be assigned for exclusive use, with exception of required ADA parking, including valet service. (2) The applicant shall actively encourage employee participation in a Ride Sharing/Carpooling program and shall offer coordination services free of charge. (2) A public transit fare reimbursement program shall be implemented by the applicant. The system shall be in effect for at least a 30 -year period. The applicant shall provide for a minimum of 50% reimbursement to 100% of the employees of the development for public transit fare to and from work. Posters, brochures and registration materials of the program shall be available to employees at all times. Employees shall be informed of the program upon orientation and annually thereafter. (3) The applicant shall provide a bicycle parking area for a minimum of 30 bicycles, free of charge, on the property. All bicycle parking spaces shall be shared among and equally available to all of the patrons, employees, and other users of the buildings. (4) The applicant shall implement a publicity program, the contents (posters, brochures and registration materials, etc.) of which is subject to the review and approval of the Executive Director, that indicates how the future occupants of the development will be made aware of the provisions of this special condition. The publicity program shall be implemented during the first month of occupancy of the new development and annually thereafter. (5) The applicant shall provide shuttle service between John Wayne Airport and the project site for all guests of the hotel. (6) If the onsite parking lot is not free of charge, a validation program for members of the public utilizing onsite commercial uses shall be provided, offering a discounted parking rate. The permittee shall undertake the development in accordance with the approved program. Any proposed changes to the approved program shall be reported to the Executive Director. No Page 4 February 17, 2016 Permit Application No.: 5-14-1785 COASTAL DEVELOPMENT PERMIT changes to the program shall occur without a Coastal Commission approved amendment to this coastal development permit unless the Executive Director determines that no amendment is required. 3. CONSTRUCTION AND DEMOLITION PLAN PRIOR TO THE ISSUANCE OF A COASTAL DEVELOPMENT PERMIT, the applicant shall submit a Construction and Demolition Plan to the Executive Director for review and approval. The plan shall identify the specific location of all construction areas, all staging areas, and all construction access corridors in site plan view. Construction and demolition staging zones shall be limited to the minimum area required to implement that approved project, and to minimize construction encroachment on public areas. The plan shall also identify the type and location of erosion control/water quality best management practices that will be implemented during construction to protect coastal water quality, including the following: a) No construction materials, debris, or waste shall be placed or stored where it may enter a storm drain or be subject to wave erosion and dispersion; b) Any and all debris resulting from construction activities shall be removed from the project site within 24 hours of completion of construction; c) Best Management Practices (BMPs) and Good Housekeeping Practices (GHPs) designed to prevent spillage and/or runoff of construction -related materials, and to contain sediment or contaminants associated with construction activity, shall be implemented prior to the on -set of such activity. BMPs and GHPs which shall be implemented include, but are not limited to: stormdrain inlets must be protected with sandbags or berms, all stockpiles must be covered, and a pre -construction meeting should be held for all personnel to review procedural and BMP/GHP guidelines. Selected BMPs shall be maintained in a functional condition throughout the duration of the project. d) Construction debris and sediment shall be properly contained and secured on site with BMPs, to prevent the unintended transport of sediment and other debris into coastal waters by wind, rain or tracking. Construction debris and sediment shall be removed from construction areas as necessary to prevent the accumulation of sediment and other debris which may be discharged into coastal waters. Debris shall be disposed at a debris disposal site outside the coastal zone. e) Silt fences, or the equivalent, shall be installed at the perimeter of the construction site to prevent construction related runoff and/or sediment from discharging onto the nearby waterways. f) Equipment washing, refueling, and/or servicing shall not take place on the project site. All construction equipment shall be inspected and maintained at an off0site location to prevent leaks and spills of hazardous materials at the project site. Page 5 February 17, 2016 Permit Application No.: 5-14-1785 COASTAL DEVELOPMENT PERMIT g) The construction site shall maintain good construction housekeeping controls and procedures (for example, clean up all leaks, drips, and other spills immediately; keep materials covered and out of the rain, including covering exposed piles of soil and waste; dispose of all waste properly, place trash in receptacles onsite for that purpose and cover open trash cans when not in use). h) All erosion and sediment controls shall be in place prior to the commencement of construction as well as at the end of each work day. i) Any required dewatering of the site due to groundwater intrusion, or percolating surface water, during construction or post -construction will require filters to be installed on all dewatering pumps and sump pumps. Such dewatering shall comply with the State of California Regional Water Quality Control Board or the Sanitary District discharge requirements. A copy of the approved Construction and Demolition Plan shall be kept at the construction job site at all times and all persons involved with the construction shall be briefed of its content and meaning prior to the commencement of demolition/construction. The permittee shall notify Commission staff at least 3 working days in advance of commencement of the demolition and construction, and immediately upon completion of construction. The permittee shall undertake the approved development in accordance with the approved Construction and Demolition Plan. Any proposed changes to the approved plan shall not occur without a Commission amendment this coastal development permit unless the Executive Director determines that no amendment is necessary. 4. WATER QUALITY MANAGEMENT PLAN PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant shall submit for the review and approval of the Executive Director, a Water Quality Management Plan (WQMP) for the post -construction project site, prepared by a licensed water quality professional, and shall include plans, descriptions, and supporting calculations. The WQMP shall incorporate structural and non-structural Best Management Practices (BMPs) designed to reduce, to the maximum extent practicable, the volume, velocity and pollutant load of stormwater and dry weather flows leaving the developed site. In addition to the specifications above, the plan shall be in substantial conformance with the following requirements: a) Post -development peak runoff rates and average volumes shall not exceed pre - development conditions. b) Appropriate structural and non-structural BMPs shall be designed to treat or filter the runoff from all surfaces and activities on the development site. c) Post -construction structural BMPs (or suites of BMPs) should be designed to treat or filter the amount of stormwater runoff produced by all storms up to and including the 85th percentile, 24-hour storm event for volume -based BMPs, and/or the 85th percentile, 1 -hour storm event, with an appropriate safety factor (i.e., 2 or greater), for flow -based BMPs. Page 6 February 17, 2016 Permit Application No.: 5-14-1785 COASTAL DEVELOPMENT PERMIT d) Runoff from all roofs and parking areas shall be collected and directed through a system structural BMPs of vegetated areas and/or gravel filter strips or other vegetated or media filter devices. The filter elements shall be designed to 1) trap sediment, particulates and other solids and 2) remove or mitigate contaminants through infiltration and/or biological uptake. The drainage system shall also be designed to convey and discharge runoff in excess of this standard from the building site in a non-erosive manner. e) The WQMP shall provide for the treatment of runoff from the parking surfaces using appropriate structural and non-structural BMPs. At a minimum this must include a filter designed specifically to minimize vehicular contaminants (oil, grease, automotive fluids, heavy metals), sediments, and floatabies and particulate debris. f) The applicant shall regularly sweep the parking surfaces on a weekly basis, in order to prevent dispersal of pollutants that might collect on those surfaces. g) The detergents and cleaning components used on site shall comply with the following criteria: they shall be phosphate -free, biodegradable, and non-toxic to marine wildlife; amounts used shall be minimized to the maximum extent practicable; no fluids containing ammonia, sodium hypochlorite, chlorinated solvents, petroleum distillates, or lye shall be used; h) The applicant shall not spray down or wash down the parking lot or surrounding sidewalks unless the water used is directed through the sanitary sewer system or a filtered drain. No car washing shall be permitted in the parking lot. i) All BMPs shall be operated, monitored, and maintained for the life of the project and at a minimum, all structural BMPs shall be inspected, cleaned -out, and where necessary, repaired at the following minimum frequencies: (1) prior to October 15th each year; (2) during each month between October 15'h and April 15 1h of each year and, (3) at least twice during the dry season. j) Debris and other water pollutants removed from structural BMP(s) during clean-out shall be contained and disposed of in a proper manner; k) It is the applicant's responsibility to maintain the drainage system and the associated structures and BMPs according to manufacturer's specification. 1) Water from the pool and spa shall not enter any stormdrains without proper treatment. m) Provide a detailed description and flows of the "Flow Through" system in the parking lot area. n) Provide clarification of the Fire Station parking lot permeability. o) Adequate curb cut size, number, and placement called out on the plans. p) The center of the parking areas and graded areas shall be constructed to adequately drain toward infiltration zones. q) Finished grade of landscaping areas should be at a lower elevation than the surrounding impermeable areas. The permittee shall undertake development in accordance with the final plan. Any proposed changes to the final plan shall be reported to the Executive Director. No changes to the final plan shall occur without a Commission amendment to this coastal development permit unless the Executive Director determines that no amendment is legally required. Page 7 February 17, 2016 Permit Application No.: 5-14-1785 COASTAL DEVELOPMENT PERMIT GENERAL OCCUPANCY REQUIREMENT By acceptance of this permit, all hotel facilities shall be open to the general public, except for the pool and spa which may be restricted to hotel guests. The hotel shall be operated as a bon fide hotel. No timeshare or other fractional ownership or long-term occupancy of units is permitted without an amendment to this permit. Rooms may not be rented to any individual, family, or other related group for more than 29 consecutive days or in accordance with any local government limitations on length of hotel stay. 6. LOWER COST OVERNIGHT ACCOMMODATIONS MITIGATION PRIOR TO THE ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant shall provide evidence, in a form and content acceptable to the Executive Director, that a fee of $42,120 per unit for 25% (32 units) of the total number of high cost overnight accommodations (130 high cost hotel rooms) in the approved project, plus a 5% administrative fee, has been paid to an accepting entity as described further below, in lieu of providing lower cost overnight accommodations on site. A. The required in -lieu mitigation fee of $1,415,232.00 (herein 'fee') shall be deposited into an interest-bearing account, to be established and managed by one of the following entities approved by the Executive Director of the Coastal Commission (herein 'ED'): the City of Newport Beach, the California Coastal Conservancy, Hostelling International USA, California Department of Parks and Recreation, or a similar ED -approved entity, in support of providing lower cost overnight visitor -serving accommodations such as RV park sites, hostel beds, tent campsites, cabins or campground units, and/or lower cost overnight accommodation opportunities in conjunction with an outdoor youth educational program (further described in subsection B of this condition), within the vicinity of Newport Beach or greater Orange County. The entire fee and accrued interest (herein 'funds') shall be used for the above stated purpose in consultation with the ED. All development funded by this account will require review and approval by the ED and a coastal development permit, if a permit is required. The funds shall be used in their entirety within ten years of the fee being deposited into the interest-bearing account established and managed by the accepting entity (or entities). If any portion of the funds remain in the account after ten years and the ED determines the funds should be reassigned, those funds shall be donated to an agency or non-profit entity, to be selected by the ED, providing lower cost overnight accommodations in the Southern California coastal zone to be used for the above stated purpose. B. Subject to review and approval of the ED, the City of Newport Beach (herein 'City') may receive some or all of the funds if the City establishes a program to utilize the funds to provide lower cost overnight accommodation opportunities (in new or existing facilities) in conjunction with an outdoor youth educational program (herein 'Program'), in a content and form acceptable to the ED. The Program shall provide overnight accommodations and educational and recreational opportunities for disadvantaged youth from Title 1 schools, as defined in the Elementary and Secondary Education Act, as amended, by providing an outdoor camp -like experience during the academic school year. The funds for the Program will provide for the expenses directly related to the overnight stays and coastal -dependent recreational opportunities such as kayaking, boating, etc. If the City receives some or all of the funds, then the additional Page 8 February 17, 2016 Permit Application No.: 5-14-1785 COASTAL DEVELOPMENT PERMIT 5% administrative fee to the mitigation funds will provide for City staff costs to manage the program annually. The Program will serve a minimum of 350 students per year, provide a minimum of 3 -night stays, and will operate a minimum of 10 years from the commencement of the Program based upon an initial funding. The educational component will focus on ocean safety, coastal and marine ecology, coastal hazards, and/or other coastal -related topics and the Program will include water -oriented recreational activities such as kayaking, boating, swimming or surfing, etc. An annual report on Program accomplishments and finances, as well as any recommended changes and/or expansions to the Program, shall be transmitted to the ED for the first 10 years of the Program, or for as long as the funds last, whichever is longer. The Program may be expanded to accommodate more students, and/or more camp sites, and/or more seasons of the year, and can be extended past the initial 10 years if existing funds allow or additional funding is available. Expansion and/or other changes to the program are subject to the review and approval of the ED, or the Commission itself if the ED determines an amendment or new permit is required. C. If the City does not enter into a memorandum of understanding (MOU) with the Coastal Commission as required in subsection D and implement the above outlined Program within 24 months of issuance of this permit 5-14-1785 all funds shall be assigned to another entity approved by the ED, in order to be used for the purposes stated in subsection A above. D. Prior to expenditure of any funds required pursuant to this condition, the ED shall review and approve in writing, the proposed use of the funds as being consistent with the intent and purpose of this condition. In addition the entity accepting the funds required by this condition shall enter into a MOU with the Commission, which shall include, but not be limited to, the following: 1) a description of how the funds will be used to provide lower cost overnight accommodations and/or the Program identified in subsection B, above, in the coastal zone; 2) the terms provided in subsection A, and/or B, if applicable, of this condition; and 3) an agreement that the entity accepting the funds will obtain all necessary regulatory permits and approvals, including but not limited to, a coastal development permit; 4) the entity accepting the funds will commence development of the lower cost overnight accommodations and/or Program identified in subsection B, above, within 36 months of the MOU date of effectiveness. The ED may extend the above -identified deadlines, in writing, for good cause. LANDSCAPING: DROUGHT TOLERANT, NON-INVASIVE PLANTS By acceptance of this permit, newly landscaped areas onsite shall only consist of drought tolerant plants native to coastal Orange County and appropriate to the habitat type. Native plants shall be from local stock wherever possible. No plant species listed as problematic and/or invasive by the California Native Plant Society (http://www.CNPS.org/), the California Invasive Plant Council (formerly the California Exotic Pest Plant Council) (htp://www.cal-ipc.orsJ1, or as may be identified from time to time by the State of California shall be employed or allowed to naturalize or persist on the site. No plant species listed as a "noxious weed" by the State of California or the U.S. Federal Government shall be utilized within the property. All plants shall be low -water - use plants as identified by California Department of Water Resources (http://www.water.ca.gov/wateruseefficiency/docs/w-ucolsOO.pd . Page 9 February 17, 2016 Permit Application No.: 5-14-1785 COASTAL DEVELOPMENT PERMIT 8. DEED RESTRICTION PRIOR TO ANY CONVEYANCE OF THE PROPERTY THAT IS THE SUBJECT OF THIS COASTAL DEVELOPMENT PERMIT, the landowner shall execute and record a deed restriction, in a form and content acceptable to the Executive Director: (1) indicating that, pursuant to this permit, the California Coastal Commission has authorized development on the subject property, subject to terms and conditions that restrict the use and enjoyment of that property (hereinafter referred to as the "Standard and Special Conditions"); and (2) imposing all Standard and Special Conditions of this permit as covenants, conditions and restrictions on the use and enjoyment of the Property. The restriction shall include a legal description of the landowner's entire parcel or parcels. It shall also indicate that, in the event of an extinguishment or termination of the deed restriction for any reason, the terms and conditions of this permit shall continue to restrict the use and enjoyment of the subject property so long as either this permit or the development it authorizes — or any part, modification, or amendment thereof — remains in existence on or with respect to the subject property. RECEIVED South Coast Region SEP 12 2016 CALIFORNIA COASTAL COMMISSION