HomeMy WebLinkAbout06/24/1996 - Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
June 24, 1996 - 7:00 p.m.
INDEX
• CLOSED SESSION - 5:00 a.m. [Refer to separate agenda from City Attorney]
CLOSED SESSION REPORT PRESENTED - None
RECESSED
RECONVENED AT 7:00 P.M. FOR REGULAR MEETING
ROLL CALL
Present: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft
Absent: None
Mayor Hedges presented Certificates of Recognition to students who
participated in the Earth Day Poster Contest, assisted by Nancy Gardner, Member
of the Environmental Quality Affairs Citizens Advisory Committee. Richie Collins,
grandson of former Mayor and City Council Member Ruthelyn Plummer,
officiated and presented the winners in the drawing for prizes, which included a
grand prize of a beginners surfboard and promotional surfing souvenirs.
Mayor Hedges presented Certificates of Appreciation to the Newport Harbor
Speech and Debate Team, and to the Captain, Mike Hoevel. Gregg Schwenk,
Coach for the team expressed his thanks to the entire City Council for their
Financial and philosophical support.
Motion by Mayor Pro Tern Debay to waive reading of Minutes of Special Study
Session of June 7, 1996, and Regular Meeting of June 10, 1996, approve as
written and order filed.
Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Wait
Noes: None
Absent: None
Abstained: None
Motion by Mayor Pro Tern Debay to waive reading In full of all ordinances and
resolutions under consideration, and direct City Clerk to read by tithes only.
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Absent:
None
Abstained:
None
MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA
FOR DISCUSSION, ACTION OR REPORT (NON- DISCUSSION ITEM)
Council Member Watt requested a report on the July 8, 1996 agenda
regarding the Balboa Island Residential Standards.
• Council Member Edwards requested a report back on July 8, 1996 regarding
is Newport Center Association /Caltrans slgnage for destination to Fashion
Island.
• Council Member O'Neil requested a report back regarding The Irvine
Company's proposed plan before the Orange County Board of Supervisors to
amend the development plan for the Newport Coast project, which may
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City of Newport Beach
City Council Minutes
June 24, 1996
move the various residential projects closer to the coastline, what that plan Is,
and whether or not It would have an impact on the City, specifically traffic
movements through Corona del Mar.
• Council Member O'Neil stated that he has received complaints (phone calls)
of the noise generated from the fixed wing aircraft advertising over the
beach areas, and he requested information from staff to pass along to those
residents.
CONSENT CALENDAR
ORDINANCES FOR INTRODUCTION
1. INTRODUCED ORDINANCE NO. 96 -24, adding Chapter 6.08 to Newport
Beach Municipal Code pertaining to food handling businesses and health
services fees.
RESOLUTIONS FOR ADOPTION
2. Removed from the Consent Calendar.
3. Adopt RESOLUTION NO. 96 -43 authorizing the Police Department to
temporarily close, or divert traffic from portions of Seashore Drive, Balboa
Boulevard, and Newport Boulevard, during the 4th of July Holiday to
install temporary barricades on Seashore Drive, and to close certain
parking lots.
CONTRACTS AND AGREEMENTS
4. BAYVIEW WAY EXTENSION (CONTRACT NO. 3034) - Approve the plans and
• specifications for construction of Bayview Way Extension street and utility
improvements to serve the new Fletcher Jones Motorcars. Authorize the
City Clerk to advertise for bids for the construction of the project.
5. COMPLETION AND ACCEPTANCE OF SOUND WALL FOR SEGMENT NO. 1
CONSTRUCTION OF MACARTHUR BOULEVARD WIDENING (CONTRACT NO.
2825 -D) - Accept the work. Authorize the City Clerk to file a Notice of
Completion. Authorize the City Clerk to release the bonds 35 days after
the Notice of Completion has been recorded in accordance with
applicable portions of the Civil Code.
6. AUTHORIZATION TO EXECUTE AN AGREEMENT WITH CALTRANS TO DEVELOP
TRANSPORTATION MANAGEMENT ASSOCIATION SERVICES IN THE AIRPORT
AREA (CONTRACT NO. 3088) - Authorize the Mayor and City Clerk to
execute an agreement with Coastal Motion to perform a Feasibility
Analysts for the implementation of a Transportation Management
Association or other employer consortium in the airport area with funding
from Calf rans.
7. 1995 -96 STREET RESURFACING AND SLURRY SEAL PROGRAM (CONTRACT
NO. 3086) - Award Contract No. 3086 to All American Asphalt for the Total
Bid Price of $725,529.00 plus a construction contingency amount of
$55,000.00 and authorize the Mayor and City Clerk to execute the
contract.
. 8. INVESTMENT MANAGEMENT AGREEMENT (CONTRACT NO. 2382) - Approve
the Investment Management and Custodial Contracts with City National
Bank.
9. Removed from the Consent Calendar.
Volume 50 - Page 179
INDEX
Ord 96 -24
Health /Sanitation
(27/40)
PD /4th July
Traffic
Res 96 -43
(70)
Bayview Extnsn
C -3034
(38)
MacArthur B1
Widening /Snd Wall
Seg 1
C- 2825 -D
(38)
Caltrans /MAS
Airport Area
C -3088
(38)
1995 -96 Street
Rsrfcg /Slurry
Seal C -3086
(38)
City National
Bank C -2382
(38)
City of Newport Beach
City Council Minutes
June 24, 1996
10.
11. MEMORANDUM OF UNDERSTANDING - POLICE MANAGEMENT
ASSOCIATION - Approve the Memorandum of Understanding between
the City and the Police Management Association which covers the period
• from January 1, 1996 through December 31, 1997.
MISCELLANEOUS ACTIONS
12. PLANNING COMMISSION AGENDA - June 20, 1996.
13. MEASURE M AND CONGESTION MANAGEMENT PROGRAM 1996 -97
ELIGIBILITY PACKAGE. Adopt the seven year Capital Improvement
Program. Direct staff to submit the adopted programs and certification of
compliance with the Maintenance of Effort requirements to the Orange
County Transportation Authority to satisfy the eligibility requirements for
the Measure M and Congestion Management Programs.
14. Removed from the Consent Calendar.
15. Removed from the Consent Calendar.
16. PROPOSED COUNCIL POLICY G -8, BEACH MAINTENANCE - Approve
proposed Council policy.
17. NEWPORT RIDGE PARK - Direct staff to enter Into formal discussion with the
Newport Harbor Ridge Homeowners Association on the use of the private
Newport Ridge Park for public recreational programs coordinated by
Recreational Services of the City's Community Services Department.
• 18. LEGAL ADVERTISING FOR FISCAL YEARS 1996 -97, 1997.98 AND 1998.99 -
Accept the bid of the Daily Pilot and authorize a purchase order for the
three -year periods of 1996 -97, 1997 -98, and 1998 -99.
19. Removed from the Consent Calendar.
20. REPORT ON STATUS OF NEGOTIATIONS FOR 338 DAHLIA AVENUE, CORONA
DEL MAR - Direct staff to continue discussions with the property owner,
obtain an appraisal to conform to 1263.010, return to Council for closed
session to consider results of appraisal, and, if necessary, take the steps to
proceed to acquisition by eminent domain.
ACTION: MOVE AFFIRMATIVE ACTION OF THE CONSENT CALENDAR, EXCEPT
FOR THOSE ITEMS REMOVED (2, 9, 10, 14, 15 and 19).
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Abstain:
None
Absent:
None
ITEMS REMOVED FROM THE CONSENT CALENDAR
2. RESOLUTION NO. 96 -42 modifying the Paramedic Subscription Program to
include emergency ambulance transportation by Fire and Marine
• Department personnel as a member benefit (rescinds Resolution 94 -98);
approve an amendment to the existing agreement for Provision of
Emergency Ambulance Transportation Services (C- 2972C); and schedule
a public hearing on July 8, 1996, for the modification of emergency
ambulance transportation service rates for non - residents to conform to a
new County rate schedule.
Volume 50 - Page 180
INDEX
PD /MOU /Mgm
C -2932
(38)
(68)
Measure M
Congestion Mgm
Prog '96 -97
(74)
Council
Policy G -8 (69)
Newport Ridge
Park
(62)
Legal Advertising
FY 1996 -99
(32)
338 Dahlia Ave/
Prop Acq
(73)
Fire /Paramedic
Prg /MedTrans
Res 96 -42
C- 2972 /Laidlaw
(38)
City of Newport Beach
City Council Minutes
June 24, 1996
Motion by Mayor Hedges to refer membership portion of the resolution
(definition of a member) to Public Safety Committee, which motion
carried by the following roll call vote:
Motion by Council Member Glover to approve Resolution No. 96 -42 and
the foregoing recommendation, Including the context of Mayor Hedges'
motion.
Tom Hyans, 217 19th Street, questioned member /annual membership for
services to be provided by the paramedics. By his interpretation, this can
be as low as $1.20 per year per individual, and result in a $12.00 total fee
per individual per year for an ambulance ride and paramedic services
from industrial /commercial membership. He also questioned where the
excess funds go, or where the money comes from to subsidize the
program when the program loses money, as it is not explicit in the
resolution. He cited that in 1994 there were approximately 2,333 calls,
and when divided into the $1.5 million for salaries and benefits for 16
Paramedics, this would be about $643 per call, which Is a pretty good
subsidy for them.
City Manager Murphy advised that it is staff's intention to have revenues
and expenditures calculated separately to actually identify them, and if a
shortfall exists to support the program, then the operation would be
supported by the General Fund. Other Cities have done the
business /member program, and this is something that the City can market
• that would generate revenues on an ongoing basis for this program. The
Integral part of the program is the paramedic subscription fee for
residents.
Motion by Mayor Hedges to amend the resolution to delete the first
paragraph on page 3, which states the justification for the fee that would
cancel the program, died for lack of a second.
Motion by Mayor Hedges to amend the motion to Include direction to
staff to investigate ways of Improving paramedic response time in the
absence of the emergency ambulance transportation services
agreement died for lack of a second.
A roll call vote on the main motion by Council Member Glover was taken
as follows and carried:
Ayes:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft
•
Noes:
Absent:
None
None
Abstain:
Abstain:
None
Motion by Council Member Glover to approve Resolution No. 96 -42 and
the foregoing recommendation, Including the context of Mayor Hedges'
motion.
Tom Hyans, 217 19th Street, questioned member /annual membership for
services to be provided by the paramedics. By his interpretation, this can
be as low as $1.20 per year per individual, and result in a $12.00 total fee
per individual per year for an ambulance ride and paramedic services
from industrial /commercial membership. He also questioned where the
excess funds go, or where the money comes from to subsidize the
program when the program loses money, as it is not explicit in the
resolution. He cited that in 1994 there were approximately 2,333 calls,
and when divided into the $1.5 million for salaries and benefits for 16
Paramedics, this would be about $643 per call, which Is a pretty good
subsidy for them.
City Manager Murphy advised that it is staff's intention to have revenues
and expenditures calculated separately to actually identify them, and if a
shortfall exists to support the program, then the operation would be
supported by the General Fund. Other Cities have done the
business /member program, and this is something that the City can market
• that would generate revenues on an ongoing basis for this program. The
Integral part of the program is the paramedic subscription fee for
residents.
Motion by Mayor Hedges to amend the resolution to delete the first
paragraph on page 3, which states the justification for the fee that would
cancel the program, died for lack of a second.
Motion by Mayor Hedges to amend the motion to Include direction to
staff to investigate ways of Improving paramedic response time in the
absence of the emergency ambulance transportation services
agreement died for lack of a second.
A roll call vote on the main motion by Council Member Glover was taken
as follows and carried:
Ayes:
O'Neil, Edwards, Debay, Cox, Glover and Waft
Noes:
Hedges
Absent:
None
Abstain:
None
9. WEST NEWPORT SAND HAUL AND BEACH FILL - Authorize the Mayor to
execute a right -of entry agreement with the Corps of Engineers to allow
access to the West Newport beaches to conduct an excavation, sand
haul and beach -fill operation, including temporary closure of some
• beach access.
Mayor Pro Tern Debay advised that there is a proposed project after
September 15 in West Newport that will affect the beaches from the Santa
Ana River Jetty almost to the Newport Pier, and deferred to Public
Works /Utilities Director Webb, wherein he reported that several years ago
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INDEX
Fire /Paramedic
Prg
West Npt Sand
Haul /Beach Fill
(74)
City of Newport Beach
City Council Minutes
June 24, 1996
the Corps of Engineers dumped 1.5 million yards of sand out of the Santa
Ana River offshore and made a mound. That sand has washed ashore
making a very wide beach and the Corps of Engineers, under a Federal
project for sand replenishment at the Surtside- Sunset Beach, Seal Beach
area, have now offered to move 140,000 cu. yds. of that sand from the
very wide beach area in West Newport down into the narrower beaches
where the groins are and down towards the pier. The contract which
requires the right -of -entry will take somewhere between four and six
weeks to move the sand. During that time frame (7:30 a.m. and 4:30
p.m., between September 1996 and March of 1997) the areas where they
are excavating and depositing the sand will be closed to the public,
however some of the area will be open to the public on the weekends.
Motion by Mayor Pro Tem Debay to approve the recommendation by
staff in foregoing carried by the following roll call vote.
Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes: None
Absent: None
Abstain: None
10. RENEWED AGREEMENT WITH HAZELRIGG RISK MANAGEMENT SERVICES,
INC. (HRMS) for Worker's Compensation (WC) Claims Administration
Services (Contract No. 3040)
Council Member Edwards removed the agenda Hem, and will refrain from
voting due to a conflict of interest.
Motion was made by Council Member O'Neil to approve the
recommended action.
• Mayor Hedges expressed concern that the agreement Includes a 4% fee
increase ($5,000 over last year), and the fact that the annual renewal
agreement includes an annual fee Increase. City Attorney Burnham
advised that the 4% increase is effective only if staff approves the
company's performance during the previous year, wherein City Manager
Murphy explained that the City is more than satisfied with the
performance of the company.
Risk Manager Lauren Farley advised that there is a 60 -day cancellation
clause in the agreement, and if the City Council did not approve the
Increase, staff would negotiate with the company to continue processing
the claims under the current fee of $245,000 (Costa Mesa shares hall of
this payment), and consequently the City would have to go out to bid for
a replacement.
Mayor Hedges commented that he will support staff's recommendation,
and that it Is good that we share the cost with the City of Costa Mesa, but
that it is not good timing to bring this type of agreement to the City
Council at this late date with an expiration date of June 30, as it does not
give the Council options to explore these types of questions, other than
the public forum.
The motion was voted on and carried with the following roll call vote:
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INDEX
Hazelrigg Risk
Mgm /11orkers Comp
C -3040 (38)
Ayes:
O'Neil, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Absent:
None
Abstain:
Edwards
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INDEX
Hazelrigg Risk
Mgm /11orkers Comp
C -3040 (38)
City of Newport Beach
City Council Minutes
June 24, 1996
14. USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR
ECONOMIC DEVELOPMENT PROJECTS - Informational report regarding
regulations establishing specific guidelines to assist cities with evaluation
and selection of economic development assistance activities. (Report
requested by Council Member Edwards.)
• Council Member Edwards removed this item from the Consent Calendar
as he wanted to thank staff for the report, and made a motion to refer this
Information to both the EDC, Planning Commission, and BBPAC for review,
comments and recommendation to the City Council (including a larger
map).
The motion was voted on and carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Absent:
None
Abstain:
None
15. COUNCIL POLICY G -5, PARK AND STREET IMPROVEMENT DONATIONS -
Approved the proposed amendments to the Park and Street
Improvement Donation policy.
City Manager Murphy advised that this policy is Intended to provide
guidelines in terms of park and street improvement donations, and the
report deals with several different things, i.e., park bench donations,
particularly on Balboa Island, park and street amenities with certain
guidelines for receipt and processing of the donations, including
guidelines with respect to recognition of the donor.
• Mayor Pro Tern Debay commended the Theater Foundation that
conducted the Balboa Theater fund - raising last evening, stating that in
that area of Main Street there are new benches and old benches. Her
hope is that through the donation program, the visitor serving areas can
be spruced up by acquiring stone aggregate trash enclosures to replace
the traditional City blue plastic trash cans.
Motion by Mayor Pro Tern Debay to approve the recommended action
carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Absent:
None
Abstain:
None
19. AIRPORT AREA REZONING STUDY - Direct staff to (1) continue working with
stakeholders in the study area to form a Property /Business Owner Task
Force; and (2) Prepare a work program, budget and proposed financing
mechanism for the preparation of a specific area plan for the study area.
Council Member Glover expressed her interest in the land use patterns,
specifically in the airport areas to identify new revenues ff Newport Beach
Is to continue as a full service City. The long term hope is to have a
specific area plan, looking at different incentives, f. e., joining lots,
• different ways of doing master planning, etc., as there are other uses
there that would not be suitable in the City that could generate more
revenue.
Motion by Council member Glover to approve the recommended action
carried by the following roll call vote:
Volume 50 - Page 183
INDEX
Prj/
CDBG Funds
(24/87)
Council Policy
G -5 (69)
Economic Deb/
Airport Area
Rezoning Study
(24)
City of Newport Beach
City Council Minutes
June 24, 1996
Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Wait
Noes: None
Absent: None
Abstain: None
• PUBLIC HEARINGS
21. ORDINANCE NO. 96 -16 AMENDING PORTIONS OF DISTRICTING MAP NO. 18
TO ALTER THE BOUNDARY BETWEEN THE "R -1" AND "PC" DISTRICTS
(PLANNING COMMISSION AMENDMENT NO. 847); GENERAL PLAN
AMENDMENT NO. 96 -1(C) AND LOCAL COASTAL PROGRAM AMENDMENT
NO. 45 TO ALTER THE BOUNDARY BETWEEN THE "RETAIL, SERVICE
COMMERCIAL" USE AND THE "SINGLE - FAMILY RESIDENTIAL" USE - K.A.
CATANZARITE AND SO CAL IBEW -NECA PENSION PLAN (352 HAZEL DRIVE
AND 3901 EAST COAST HIGHWAY). (Continued from May 13, 28, and June
10, 1996.)
City Attorney Burnham advised that there still is the unresolved matter of
title policy to accommodate the agreement of the parties necessary to
consummate a settlement between the City, the "Summerhouse"
developers and the adjoining property owner, that will minimize the
grading and destruction that has to occur In the neighborhood.
Mayor Hedges proposed a motion to lay the matter on the table, and if
his motion is successful to remove it from the table and schedule the
matter for a subsequent meeting, with the understanding that the
applicant bear the cost of renoticing the public hearing.
Frank Vandenberg, American Realty Advisors on behalf of the SO CAL
IBEW -NECA PENSION PLAN, apologized for the numerous continuances.
• He stated that one of the problems in completing the parcel map has
been with the exceptions on the preliminary title report differing from one
title company to another. The parties involved have now changed to one
title company to do the research, and because of the short week coming
up (July 41h holiday) the parties Involved are requesting a four week
continuance and that the matter not be fabled.
K.J. Catanzerite joined in apologizing for the amount of time this project
has taken, and stated that just today they received the preliminary title
report, which removes all of the exceptions. Part of his concern is that the
County's normal review process may take as much as four weeks,
Wherein, City Attorney Burnham advised that he believes the Council can
approve the action on the settlement agreement without final County
approval of the parcel map.
Substitute motion by Council Member O'Neil to continue to July 22, with
the understanding that if the action is not ready for Council approval the
matter will be tabled, carried with the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft
Noes:
None
Absent.
None
Abstain:
None
22. OPTION AGREEMENT AND GROUND LEASE by and between the City of
Newport Beach and the BALBOA BAY CLUB PROPERTY, INC.
City Manager Murphy highlighted some of the issues of the current and
proposed lease. With respect to the consultants engaged by the City,
highest priority was given to the economic viability, property values and
fair market rental values. The original lease was entered Into in 1948 (SO-
Volume 50 - Page 184
INDEX
Ord 96 -16
PCA 847
GPA 96 -1(C)
LCPA 45
Catanzarite
Zoning (94)
Balboa Bay
Club C -519
(38)
City of Newport Beach
City Council Minutes
June 24, 1996
year lease) and in 1986 the City entered into a 25 -year term lease
extension which expires in the year 2011. Today the City receives
approximately $900,000 In total rent pursuant to the terms of the current
lease. Per a 1985 MOU between the parties, (BBC and City) they are
required to work together on a comprehensive plan for the
• redevelopment of the lease premises. As for the matter of the Terrace
Apartments, It has been acknowledged that they are on State Tidelands,
this issue has been resolved, and they may remain as part of this property
and not converted to visitor -type uses through the year 2044. The BBC
submitted their redevelopment plans in 1994 for City processing through
the Planning Commission and to the Coastal Commission and received
approvals. The 1986 lease has the City acknowledging that a
redevelopment will require a new lease extension consistent with
financing requirements, and that is the action before the Council tonight.
City Manager Murphy advised that the current proposal before the
Council is structured with an option and a lease, and the option is such
that the It may be exercised only after the BBC has completed certain
Issues: 1) All the processing for permits from all governmental entities for
the renovation and reconstruction of the premises; 2) Obtained the City's
approval as landlord of the concept plans, design development plans
and final plans for the renovation; 3) Provided satisfactory evidence to
the City that sufficient financing is available to complete the renovation,
and finally that they have obtained and paid for a building permit to
actually commence the construction. BBC, per the option agreement,
may exercise that agreement at any time prior to the 5th anniversary of
the option agreement, and If action is taken tonight B would be within five
years of that date. In consideration for the option agreement the BBC has
agreed to pay the City $250,000 plus interest accrued at 8% between the
option agreement approval and the date If, and when, It Is exercised.
• The timetable in the option agreement requires the BBC to submit their
conceptual plan by June 30, 1997; the design development plans within
one year of that date; and the final plans and specs prior to the expiration
of the option. The specific ground lease agreement term is 50 years
commencing upon the completion of certain steps as follows:
construction of the new Improvements must begin within 90 days of the
new lease and must be completed within three years; BBC agrees to
renovate and maintain the hotel through the lease agreement in a first
class condition and agrees to keep all the other facilities in a condition
equal to other quality facilities in the area. Currently the base rent is
approximately $400,000, and the new base rent in this agreement is
$1.125 million (the various categories and percentages are outlined in the
agreement).
Motion by Council Member Glover to conduct the public hearing;
approve an Option and Groundlease Agreement with the Balboa Bay
Club, Inc.; and authorize staff to forward the agreements to the State
Lands Commission for approval.
David Wooten, President of the International Bay Clubs, the parent
company of the Balboa Bay Club, commented that for over a half century
the BBC has provided a social, recreational, business club for Its members
and in addition has served as host for many civic, social, charitable and
business functions. The option agreement will enable the BBC to continue
its traditions for another 50 years, and as a result of the redevelopment
• project, a portion of the BBC site will be open to the general public. He
commended the staff for the tremendous effort that went into the BBC
project in developing an agreement that will last for 50 years, stating that
this is truly a win, win project, and hopes that the Council will grant the
approvals.
Volume 50 - Page 185
INDEX
Balboa Bay Club
City of Newport Beach
City Council Minutes
June 24, 1996
Beverly Ray, Chairman of the Board, International Bay Clubs and BBC,
added that the negotiations have taken a lot of hard work and in
speaking for the Club, feels they have reached an agreement that will
benefit the City, as well as insure the continuity of the Club, which has
become a symbol of Newport Beach hospitality and lifestyle, and hopes
• the Council will give their unanimous approval.
Richard Luehrs, President of the Newport Harbor Area Chamber of
Commerce, representing the Board of Directors, asked for Council's
unanimous support of this particular lease agreement, citing the
beneficial aspects to the City and the public.
Rush Hill, Chairman of the City's Economic Development Citizens Advisory
Committee, reviewed the existing lease, as well as the new option and
groundlease. He sold he believes it represents a quality agreement
which provides for the renewal of the property and the renewal of a
significant asset for the City of Newport Beach. The BBC will have a new
lease as the cornerstone for financing this multi- million dollar project, and
he strongly urged approval of the action before the Council tonight. He
added that we should not lose sight of the fact that this is a new anchor
tenant on the east end of Mariners Mile. If, within the next 12 months, we
can be successful in dealing with the vacancies on the west end of
Mariners Mile, then collectively a tremendous new value will have been
created in one of the most important business districts In the City.
Hearing no one else wishing to offer public testimony, the public hearing
was closed.
A roll call vote was taken on the motion and carried as follows:
• Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft
Noes: None
Absent: None
Abstain: None
PUBLIC COMMENTS
Daniel Allen Cutrone, 11738 Garetal Street, Santa Fe Springs, addressed the
Council stating that for the past six weeks he has been working on the
MacArthur widening project. During this time they have uncovered a
prehistoric native American Indian site there, which was not included in the
EIR. He has information that the site is significant to the native American
heritage In the City of Newport Beach, and he believes that the widening
project should go around this prehistoric site until a reevaluation is presented
and the public made aware of its significance towards a small
commemorative island park.
Council Member O'Neil acknowledged the many phone calls he has
received in support of the new Farmers Market in Corona del Mar, and the
fact that it is doing very well and contributing to the community, not only as
market, but a meeting place.
CURRENT BUSINESS
• 23. BUDGET CHECKLIST FOR THE 1996 -97 FISCAL YEAR PROPOSED
BUDGET /BUDGET RESOLUTION.
City Manager Murphy gave an update on some of the issues that Council
asked for on the Budget checklist:
Volume 50 - Page 186
INDEX
Balboa Bay Club
FY 1996 -97
Budget (40)
City of Newport Beach
City Council Minutes
June 24, 1996
Additional Information - City Manager Murphy presented the Council with
two additional information schedules requested at the Budget Study
Session of June 7, 1996. The first schedule showed "Core Capital
Projects" for the last 5 years. This is a listing of those capital projects
financed from City generated revenues and does not Include those one
• time capital projects funded from outside financing sources such as State
or Federal funds.
The second schedule showed a 10 year trend in safety vs. non - safety
salaries as well as budgeted vs. actual revenues and expenditures over
the same time period. The salary and revenue and expenditure figures
were shown in actual and adjusted for inflation amounts. This schedule
also showed a 10 year history of full time employees.
Vehicles - Staff added this to the checklist for the purpose of rebudgeting
these funds to the Vehicle Replacement Fund, to purchase vehicles that
were budgeted in the 1995 -96 fiscal year but were not expended or
encumbered previously (Police Undercover Van ($77,580), Paint Striper
Truck ($30,500 lease purchase), and three Police Motorcycles ($39,000)).
Following Council discussion, the following Budget checklist Hems were
discussed and straw voted:
Off- street Parkina Transfer - Each year, 50 percent of the revenue
generated from certain parking meters is transferred into an Off - Street
Parking Reserve in the General Fund. This transfer is approximately
$250,000 annually. The current balance in the reserve is approximately
$1.6 million. Staff proposed eliminating the transfer of this parking meter
revenue to the Off- Street Parking Reserve until the General Fund
Stabilization Reserve had reached the Council goal of 15 percent of
• General Fund operating expenditures. The Off- Street Parking Reserve
would remain at $1.6 million and would increase annually with interest
earnings.
Motion was made by Mayor Hedges to continue to make the offstreet
transfer ($250,000) that is not in the budget.
Tom Hyans, President of the Central Newport Beach Community
Association, expressed that the $250,000 belongs in the Off - Street Parking
Reserve for the repair, restoration, addition of parking areas, vehicle
storage, etc., to the tourist- traffic -worn parts of town. The money comes
from the parking meters and to use part of these funds to repatriate the
budget development process without Council approval is not the way to
do business.
Marcia Dossey, President and Member of the Newport Pier Association,
McFadden Plaza area and representing the association, voiced
opposition to the transfer of revenue generated in their area through the
Off - Street Parking resolution that belongs to their area, and added that in
keeping with revitalization of the area, to not transfer $250,000 of these
funds to the Off - Street Parking Reserve is in direct conflict with their goals.
The motion was voted on and carried by the following roll call vote:
Ayes: Debay, Hedges, Glover and Watt
• Noes: O'Neil, Edwards, Cox
Absent: None
Abstain: None
Charges for Services: An increase in Charges for Services revenue in the
amount of $300,000 was included in the proposed budget as a result of
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INDEX
FY 1996 -97 Budget
City of Newport Beach
City Council Minutes
June 24, 1996
the information generated by the KPMG Peat Marwick Cost of Services
Study. The Study indicated that City Services are currently being
subsidized by general tax revenues in excess of $1.0 million per year.
City Manager Murphy mentioned that the Council had given direction to
staff to increase certain fees, i.e., Residential Building Records and other
• Planning and Building fees to bring the fees of the City in line with the
actual cost of services.
Motion by Mayor Hedges to not budget the $300,000, in the absence of
Council action on the identified fee increases as a result of the studies.
Tom Hyans, 219 29th Street asked whether or not the revenue received
from the recent increases in the water and sewer use charges were
included in the budget, and he was told that they were not included to
the proposed budget but were now included since the Council has acted
on the increases.
The motion was voted on and failed by the following roll call vote:
Ayes:
Hedges, Glover
Noes:
O'Neil, Edwards, Debay, Cox, and Watt
Absent:
None
Abstain:
None
Mayor Hedges instructed the Council that the motion to include the
Increased Charges for Services revenue will require an affirmative vote of
the Council.
Motion by Council Member O'Neil to budget $300,000 in Increased
Charges for Services revenue as identified by the KPMG Study was voted
on and carried by the following roll call vote:
•
Ayes: O'Neil, Edwards, Debay, Cox and Watt
Noes: Hedges, Glover
Absent: None
Abstain: None
Document Imaalna: Request from the City Clerk for a document imaging
system which would provide a base program expanded to multiple
departments, as well as funding the first module within the City Clerk's
office.
Motion by Mayor Hedges to include the document imaging system in this
year's General Fund Capital Improvement program at the lease /purchase
rate ($75,000 a year) to purchase a City -wide system.
Council Member Glover advised, in answer to Council Member Debay's
Inquiry, this Item was placed on the budget checklist by the Finance
Committee for consideration by the City Council.
City Manager Murphy added that there were many quality projects
submitted, including the document imaging system, that he would have
liked to see included in the budget. This was a judgment call, although It
is a very worthy project from a record keeping /retrieval standpoint. If the
Council feels they want to include this in the budget, he would be forced
• to look at reducing some of the maintenance of City Hall, Police Facility
and a variety of other capital projects.
Bo Clawson, 1411 North Bay Front, asked if anybody has done an
independent cost benefit analysis given the current technology, how fast
H is moving and the fact that prices for technology are dropping.
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INDEX
FY 1996 -97 Budget
City of Newport Beach
City Council Minutes
June 24, 1996 INDEX
In response to City Manager Murphy and Council regarding a preliminary
study, Paul Malkemus, MIS Manager, advised that a rough guess for the
cost of such a study would be in the neighborhood of $10,000 - $15,000.
• Substitute motion made by Council Member Waft to move forward on a
less costly basis and authorize $25,000 for the study and a plan to be
Included in the 1996 -97 Budget.
Mayor Hedges moved to amend the substitute motion to authorize
$75,000 to do the study and plan, and to use the balance of the funds to
acquire the system. (If additional funds are needed this would be
accomplished by way of a budget amendment.) The amendment died
for lack of a second.
Motion by Mayor Hedges to amend the substitute motion to direct staff to
initiate the RFP and expedite this study within 30 days carried by the
following roll call vote:
Ayes:
Edwards, Debay, Hedges, Cox, Glover and Watt
Noes
O'Neil
Absent:
None
Abstain:
None
Council Member Watt's substitute motion was voted on and carried by
the following roll call vote:
Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes: None
Absent: None
• Abstain: None
Notebook Computers: Two notebook computers assigned to the MIS
Division to permit their checkout for use by employees while traveling on
City business, or while working at home on an important work - related
project, and still permit them to access the City's network via modem.
City Manager Murphy concurred in the recommendation to include
money in the 1996 -97 budget for this request advising that 0 the Council
so desires, he will find the additional $5,000 requested.
As a matter of clarification, it was advised that there is $20,000 already
budgeted and the request is for an additional $5,000.
Motion by Council Member Glover to increase the budget by $5,000 for
notebook computers for the 1996.97 fiscal year, was voted on and
carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Absent:
None
Abstain:
None
Human Services and Arts and Cultural Grants: By acclamation of the City
Council, these two issues were considered together, Human Services
• Grant for $25,000 and Arts and Cultural Grant for $40,000.
Motion by Mayor Hedges to delete from the budget $65,000 for both the
Human Services and Arts and Cultural Grants died for lack of a second.
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FY 1996 -97 Budget
City of Newport Beach
City Council Minutes
June 24, 1996
Edwards to include the
for the two grant programs.
in the budget
Roya Fouladi, Chairman of the Newport Beach Arts Commission,
presented statistics to the Council regarding worthy grant applicants and
• what the $40,000 bought last year, i.e., visiting artist from the Newport
Harbor Art Museum brought in for nine- weeldy sessions in the classrooms
of Newport Harbor High School and Ensign Intermediate which
culminated in the exhibit at City Hall; art lessons taught to first graders at
Newport -Mesa Schools and a tour of the Art Museum; support for
Baroque Music Festival; Ballet Pacifica that brings the children's ballet to
kindergarten through 6th graders; Master Chorale that give five morning
concerts at each of the City's elementary schools, Newport-Mesa Schools
Foundation Grant to teachers who incorporate art into their curriculum;
Orange County Philharmonic Grant giving concerts in Newport Harbor
High School (60 -piece professional orchestra); Opera - Pacific's Holiday
Program at Oasis Senior Center and at Newport Harbor High School;
Pacific Chorale receives a grant serving over 300 children at Mariners
Elementary School with their children's chorus performing at Orange
County Performing Arts Center and busing the children to see that; Pacific
Symphony who provide ensemble performances at the Oasis Senior
Center and conducted dozens of music training clinics for the instrument
students at Corona del Mar High School and last week's South Coast
Repertory brought 10 performances to Newport Beach Elementary
Schools of a professional theater production. She added that this next
year the funds will have to be spread out a little thinner, and asked
support for the $40,000 grant money, emphasizing implementation of
Council Policy 1 -12 which authorizes a $55,000 Arts Commission grant
Fund.
•
Mayor Hedges commented that Arts and Cultural and Human Services
Grants are worthy projects, but he doesn't agree that they are a
responsible use of general tax revenues.
The motion was voted on and carried by the following roll call vote:
Ayes:
O'Neil, Edwards,
Noes:
Hedges
Absent:
None
Abstain:
None
Debay, Cox, Glover and Watt
AQMD Grant: Replacement of 10 refuse trucks (a portion of the funding
for the replacement of these trucks would be utilizing AB 2766
Competitive Grant moneys for which the City applied and was awarded
$413,000. Council is to reserve judgment until the next Council meeting
for a comprehensive analysis and a recommendation.
Motion by Mayor Hedges to defer consideration on the foregoing to July
8, was voted on and carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Absent:
None
Abstain:
None
Summer Refuse Collection on Balboa Island: Staff is recommending the
continuation of Option A as currently budgeted (Central and West
Newport $14,824).
Motion by Council Member Waft for Option B (Central, West Newport, and
Balboa and little Balboa Islands - $34,069) and work with Balboa Island
Volume 50 - Page 190
INDEX
FY 1996 -97 Budget
City of Newport Beach
City Council Minutes
June 24, 1996
and the staff to find the most fiscally conservative limited plan that would
satisfy the basic issue, i.e., the trash accumulated from the short term
rentals.
John Noyes, President of the Balboa Island Business Association,
• suggested that a regular City employee drive the truck and use of
additional summer help loading the trash, as he feels that this should have
been part of the budget. City Manager Murphy advised that the
estimated revenue generated on an annual basis collected on Balboa
Island in transient taxes is $86,000, and suggested more vigorous
enforcement as a way to deal with the transient trash.
The motion was voted on and carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Absent:
None
Abstain:
None
Transportation Management Associations (TMA'S) and City Rideshare
Proaram: Staff's recommendation is to review the proposed allocations
($30,162) at the meeting of July 8 or 22, 1996, with full information
presented then.
Motion by Mayor Hedges to include the TMA'S and Rideshare Program
funding and review these programs on July 22, 1996, was voted on and
carried by the following roll call vote:
Vehicles: Request to rebudget the five vehicles referred to by City
Manager Murphy from the current fiscal year to the next fiscal year.
Motion by Council Member Cox to approve the foregoing was voted on
and carried by the following roll call vote:
Ayes:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
None
Noes:
None
•
Absent
Abstain:
None
None
Vehicles: Request to rebudget the five vehicles referred to by City
Manager Murphy from the current fiscal year to the next fiscal year.
Motion by Council Member Cox to approve the foregoing was voted on
and carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes:
None
Absent:
None
Abstain:
None
Motion by Council Member Cox to adopt Resolution 96 -44 adopting the
budget for the 1996 -97 Fiscal Year, including any amendments as part of
the final budget review was voted on and carried by the following roll call
vote.
Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt
Noes: None
Absent: None
Abstain: None
24. BOARD AND COMMISSION VACANCIES.
• Mayor Hedges referred members of the Council to the staff report and
agenda regarding the nominees, advising that It might get a little more
complicated when voting.
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INDEX
Boards /Commissions
(24)
City of Newport Beach
City Council Minutes
June 24, 1996
Mayor Pro Tem Deboy reported that she would like to know If there
any current vacancies on the standing committees, as she felt that it
individuals interviewed and not appointed to commissions could
appointed to vacancies on the Citizens Advisory Committees.
INDEX
Orel Library Board
be
• Motion by Council Member Cox to reopen nominations for the library
Board.
As a matter of clarification, it was noted that Cynthia Hollern withdrew as
a nominee on the library Board.
The motion was voted on and carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Cox and Walt
Noes:
Hedges, Glover
Absent:
None
Abstained:
None
As a result of the foregoing, Council Member Cox nominated Jim Wood
to be added to the list of nominees for the library Board.
Motion by Council Member O'Neil to close the nominations was voted on
and carried by the following roll call vote:
Ayes:
O'Neil, Edwards, Deboy, Hedges, Cox, Glover and Waft
Noes:
None
Absent:
None
Abstain:
None
Mayor Hedges advised that the method of voting would be by majority
• votes per nominee to elect the various Boards and Commissions
Members.
BOARD OF LIBRARY TRUSTEES (1 vacancy)
Two votes were cast for Joanne Lombardo, four for Jim Wood and none
for Susan Smith, therefore James Woods was appointed to a 4 -year term
ending June 30, 2000.
PLANNING COMMISSION (2 vacancies)
Two votes were cast for Rob Palteson, two for Richard Fuller, four votes for
Thomas Ashley, and six votes for Tod Ridgeway: therefore Thomas Ashley
was appointed to a 4 -year term ending June 30, 2000 and Tod Ridgeway
was reappointed to a term ending June 30, 2000.
PARKS. BEACH & RECREATION COMMISSION (1 vacancy)
Six votes were cast for Malcolm Dunn and one vote for Timothy Brown,
therefore Malcolm Dunn was appointed to a 4 -year term ending June 30,
2000.
ARTS COMMISSION (4 vacancies: two 4 -year terms; one 3 -year term; one
2 -year term with nominees receiving the least number of votes of the top
four to have the shorter terms.)
• Four votes were cast for Kenneth Marshall, seven for Lyn Belasco, none
for Sunny Pedno, one for Rosalind Wells, four for Michael Coon, seven for
Mary Macintyre, one for Winnie Ross, and three for Nancy Warzer- Brady.
Based on the votes cast, Kenneth Marshall was appointed to a 2 -yeas
term ending June 30, 1998, Lyn Belasco was appointed to a 4 -year term
Volume 50 - Page 192
Planning
Commission
PB &R Commission
Arts Commission
City of Newport Beach
City Council Minutes
June 24, 1996
ending June 30, 2000, Michael Coon was appointed to 3 -year term
ending June 30, 1999, and Mary Maclntyre was appointed to a 4 -yeas
term ending June 30, 2000.
CIVIL SERVICE BOARD
• Mayor Hedges advised that there was a delay in getting applications
from the Police and Fire Associations for the additional nominees, Susan
Thomas, Cora Newman and Rolla Dory, and that Rolla Dory had
withdrawn her name (the City Charter requires five nominees as electors
of the City).
Motion by Mayor Hedges to continue the selection of the Civil Service
Board Members to July 8, 1996 and that the incumbents act in their
positions pending reappointments or appointments.
Clint Hoose, 7 Coventry, and Civil Service Board incumbent, asked for
clarification from the City Attorney, wherein, It was restated per the
Municipal Code that, "Two members shall be appointed by the City
Council from a list of five persons to be nominated by vote of the
employees in the Classified Service, two members shall be appointed by
the City Council directly, and the fifth shall be appointed by the City
Council from a list of three persons nominated by a majority of the four
thus appointed." In response to Council Member Edward's Inquiry, Mr.
Burnham further advised that the Charter's procedure prevails stipulating
that those nominees shall be qualified electors.
The motion was voted on and carried by the following roll call vote:
25. UPDATE ON CONDOMINIUM CONVERSIONS AND CONSIDERATION Of AN
INTERIM URGENCY ORDINANCE PROHIBITING CONVERSIONS ON BALBOA
ISLAND DURING A 45 -DAY PERIOD. (Requested by Council Member Walt)
Council Member Waft stated the update was prompted by concerns of
Balboa Island homeowners that a particular condominium conversion
was pending before the Modifications Committee. As a result, she
requested that this issue be brought before the City Council in support of
an urgency ordinance, and therefore made a motion to have a 45 -day
planning study conducted regarding the impacts condominium
conversions would have on the surrounding neighborhoods and the 1-1
1/2 Zoning District. This urgency action is not retroactive to any project
that has been introduced already.
Loretta Zimmerman, 327 Sapphire Avenue, made the Council aware that
a large portion of the community is adamantly opposed to not only the
pending condominium conversion, but future condominium conversions
on Balboa Island as this would contribute to an already overcrowded
parking situation (current parking requirements for new single family
homes is three off street parking spaces and new duplexes Is four off
street parking spaces vs. a condominium with two separate owners
® sharing a two -car garage). Dual ownership of single residences and
properties would be promoted by unrelated individuals without the
proper controls of CCR's and legal guidelines (i.e., membership dues,
property maintenance, etc.).
Volume 50 - Page 193
INDEX
Civil Service
Board
Urgency Ord 96 -25
Moratorium on
Condom Cnvrsns on
Balboa Island
(68)
Ayes:
Edwards, Debay, Hedges, Glover and Watt
•
Noes:
Absent:
Cox, O'Neil
None
Abstained:
None
25. UPDATE ON CONDOMINIUM CONVERSIONS AND CONSIDERATION Of AN
INTERIM URGENCY ORDINANCE PROHIBITING CONVERSIONS ON BALBOA
ISLAND DURING A 45 -DAY PERIOD. (Requested by Council Member Walt)
Council Member Waft stated the update was prompted by concerns of
Balboa Island homeowners that a particular condominium conversion
was pending before the Modifications Committee. As a result, she
requested that this issue be brought before the City Council in support of
an urgency ordinance, and therefore made a motion to have a 45 -day
planning study conducted regarding the impacts condominium
conversions would have on the surrounding neighborhoods and the 1-1
1/2 Zoning District. This urgency action is not retroactive to any project
that has been introduced already.
Loretta Zimmerman, 327 Sapphire Avenue, made the Council aware that
a large portion of the community is adamantly opposed to not only the
pending condominium conversion, but future condominium conversions
on Balboa Island as this would contribute to an already overcrowded
parking situation (current parking requirements for new single family
homes is three off street parking spaces and new duplexes Is four off
street parking spaces vs. a condominium with two separate owners
® sharing a two -car garage). Dual ownership of single residences and
properties would be promoted by unrelated individuals without the
proper controls of CCR's and legal guidelines (i.e., membership dues,
property maintenance, etc.).
Volume 50 - Page 193
INDEX
Civil Service
Board
Urgency Ord 96 -25
Moratorium on
Condom Cnvrsns on
Balboa Island
(68)
•
•
City of Newport Beach
City Council Minutes
June 24, 1996
Jay Greer, 1207 North Bay Front, expressed his concerns over the quality
of life, and the fact that the single family residence at 1209 North Bay
Front was never intended to be a duplex or a condominium. He
commended the Council for taking immediate action by either
exempting Balboa Island from Ordinance No. 94 -47 and holding the
pending condominium application and all others until an EIR has been
made and a reasonable solution found.
Bo Clawson, 1411 North Bay Front, also expressed his thanks to the
Council and urged them to delay any action on the pending
condominium conversion request rather than making a hasty decision.
Pat Buderwitz, 221 Sapphire, Balboa Island, has worked with the Planning
Department on the Committee to review the standards and specifications
on Balboa Island and was very pleased with the letters to Council, and
Council Member Watt's timely response to the issue.
Bill langjahr, 1211 North Bay Front, urged the Council to pass the urgency
ordinance sponsored by Council Member Waft; but expressed
disappointment that the application at 1209 North Bay Front was not
included; as changing ownership is of concern, adding that the current
ordinance is counterproductive to all other efforts to solve parking
problems on Balboa Island, particularly when building a new structure
with two units (four parking spaces) and further impaction by business
parking.
Council Member Waft added that Balboa Island's problems are small lots,
bulk mass, parking and congestion and population. The trend over the
last few years has been to buy property which was converted from
duplex to single family, and the City needs to specify that when a duplex
is converted to a condominium it stays that way, i.e., a two - family unit
maximized as much as possible in terms of its use and If if's an old one,
that N stays with Us two parking spaces instead of four.
The motion was voted on to adopt Urgency Ordinance No. 96 -25
amending Titles 19 and 20 of the Newport Beach Municipal Code revising
the City's Condominium Conversion Regulations and carried by the
following roll call vote:
Ayes:
O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft
Noes:
None
Absent:
None
Abstain:
None
MOTION FOR RECONSIDERATION - None
ADJOURNED at 11:26 p.m.
Volume 50 - Page 194
INDEX
Balboa Island/
Condom Cnvrsns
City of Newport Beach
City Council Minutes
June 24, 1996
The agenda for this meeting was posted on June 19, 1996 at 4:10 p.m., on
the City Hall Bulletin Board located outside of the City of Newport Beach
Administration Building.
Attest:
tll j h4. / &zt�
City Clerk (Acting)
•
•
Mayor
Volume 50 - Page 195
INDEX