HomeMy WebLinkAbout03/13/1989 - Regular Meetingent x x
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CITY OF NEWPORT BEACH
EMBERS REGULAR COUNCIL MEETING
O gy PLACE: Council Chambers
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i\y9�'A TIME: 7:30 P.M.
DATE: March 13, 1989
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MINUTES
Mayor Strauss presented proclamations in
recognition of Girl Scout Week, March 6 - 11,
1989; and Red Cross Month, March 1989.
A. ROLL CALL.
B. Reading of Minutes of Meeting of
February 27, 1989, was waived, approved
as written, and ordered filed.
C. Reading in full of all ordinances and
resolutions under consideration was
waived, and City Clerk was directed to
read by titles only.
D. HEARINGS:
1. Mayor Strauss opened the public hearing
regarding construction of curbs and
gutters on the easterly side of BROAD
STREET BETWEEN WESTMINSTER AND BOLSA
AVENUES.
Report from Public Works Department, was
presented.
Dr. Jan Vandersloot, 2221 16th Street,
addressed the Council in favor of the
proposed improvements, and indicated he
would also support the same improvements
on 16th and Tustin Streets where he
resides.
In response to the above, Dr.
Vandersloot was advised to obtain
petitions in support from 50% or more of
the property owners on his block.
Hearing no others wishing to address the.
Council, the public hearing was closed.
Motion was made to direct staff to
continue with the procedure to construct
curbs and gutters.
E. PUBLIC COMMENTS:
None.
F. CONSENT CALENDAR:
The following actions were taken as
indicated, except for those items removed.
1. ORDINANCES FOR INTRODUCTION:
None.
Volume 43 - Page 76
Broad St/
Btw Bolas
& Westmatr/
Curbs /Gtrs
(74)
CITY OF NEWPORT BEACH
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2. RESOLUTIONS FOR ADOPTION:
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4.
(a) Resolution No. 89 -10 designating
"board surfing" areas,
establishing dates and hours when
surfing areas may be used, and
rescinding Resolution No. 85 -94.
(Report from Marine Department)
MINUTES
Board Sufg
Areas
Res 89 -10
(51)
(b) Resolution No. 89 -11 establishing _a Live -Abrd
fee to be paid in conjunction with Apli Fee
APPLICATION FOR LIVE - ABOARD Res 89 -11
PERMITS. (Report from Marine (40/51)
Department)
CONTRACTS /AGREEMENTS:
(a) Award contract to Universal Police Fac
Building Maintenance for JANITORIAL Janitor Sry
SERVICES OF THE POLICE FACILITY; - C -2741
and authorize the Mayor and City (38)
Clerk to execute subject contract.
(Report from Police Chief)
(b) Award Contract No. 2382 to City
National Bank on the basis of the
lowest bid to provide CITY BANKING
SERVICES through March 31, 1992.
(Report from Finance Director)
(c) Accept CalTrans offer of $360,000;
and authorize the City Manager to
execute required documents to
complete acquisition of PORTION OF
WEST NEWPORT CITY OWNED PROPERTY
FOR WIDENING OF SANTA ANA RIVER
BRIDGE. (Report from Public Works
Department)
COMMUNICATIONS - For referral as
indicated:
(a) To Environmental Services
Coordinator for reply, letters in
support of the VILLAGE INN, from
Bee Jay and Joel Brown, Cap
Blackburn, Mr. and Mrs. Robert 0.
Higgins, Mr. and Mrs. Charles W.
Masters, Nellie Reeves and Don
Jones.
City Bankg
Srvs /City
Ntl Bnk
C -2382
(38)
Sale of
Property/
West Npt
(73)
Envirn Sry
(24)
(b) To Personnel Director for response, Personnel
letter from Dr. Jerome Hunter, (66)
Orange County Human Relations
Commission concerning designation
of MARTIN LUTHER KING'S BIRTHDAY as
a holiday.
(c) To Traffic Affairs Committee for TAC
reply, letters from Bruce L. (85)
Norlund, and Kathryn Kent
Volume 43 - Page 77
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CITY OF NEWPORT BEACH
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concerning the intersection at
BALBOA BOULEVARD and Bay Avenue and
traffic on Balboa Boulevard and
ISLAND AVENUE.
(d) To General Services Director for
reply, letters from Diana Brookes
and Tamara Leslie concerning
RECYCLING NEWSPAPER, GLASS AND
CANS.
(e) To staff for response, letter from
Orange County Supervisor Tom Riley
regarding the County's position in
response to the City's concerns
about the MONORAIL PROJECT.
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Srvs
Cnty
(f) To General Services for reply, Srvs
letter from Barry H. Walshe [eneral
44)
concerning drinking fountains and
restroom maintenance at the FERRY ON
BALBOA ISLAND.
(g) To Planning Department for
Plan
inclusion in the records,
(68)
suggestions from Corona del Mar
Community Association for
appropriate usage for EMERALD
ASSOCIATES PROPERTY and letter from
John B. Heffernan in support of
proposed care facility.
(h) To Pending Legislation and
egi
Procedural Ethics Committee, letter
(48)
soliciting support of SB 103
(62)
(Senator Alan Robbins) relating to
automobile insurance renewal.
(i) To Planning Department for
Plan
inclusion.in the records, letter
(68)
from Management Service Company
regarding Linda Isle Community
Association's continuing protest on
the additional development of the
restaurant and parking area at the
southwest corner of Pacific Coast
Highway and Bayside Drive.
(j) To Parks, Beaches and Recreation
PB &R
Director for reply, letter from
(62)
John Trowbridge regarding proposed
new basketball facilities at West
Newport Park.
5. COMMUNICATIONS - For referral to the
City Clerk for inclusion in the records:
None.
Volume 43 - Page 78
CITY OF NEWPORT BEACH
COUNCIL MEMBERS
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L CALL to
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6. CLAIMS FOR DAMAGES - For denial and
confirmation of the City Clerk's
referral to the claims adjuster:
MINUTES
(36)
(a) William Boyce for towing Boyce
reimbursement and storage fees,
alleging his vehicle towed in error
on February 17, 1989 at 10th &
Balboa Boulevard.
(b) Judy Dillman for reimbursement of Dillman
impound fee, alleging her vehicle
was towed in error from 109 43rd
Street.
(c) Barbara Sandberg Johnson alleging Johnson
damage to property as a result of
City sewer backup at 1109 N. Bay
Front on December 5, 1988.
(d) Paul Kelly alleging vehicle towed
from 4800 Seashore Drive on
February 14, 1989, in error due to
previous citations issued to prior
owner of vehicle; seeking
reimbursement of $159 for tickets
incurred by previous owner of
automobile.
(e) Gregg Michael Padovan alleging
false arrest and vehicle towed in
error on December 30, 1988.
(f) Harold V. Roseberry alleging Roseberry
excessive physical abuse by five
Newport Beach Police Officers at
11th and Balboa Boulevard on
November 26, 1988.
7. SUMMONS AND COMPLAINTS - For denial and
confirmation of the City Clerk's
referral to the claims adjuster:
None.
8. REQUEST TO APPROVE /FILL PERSONNEL (66)
VACANCIES: (Report from the City
Manager)
(a) One Maintenance Worker I, Field
Maintenance Division.
(b) Two Refuse Workers I, General
Services Department.
(c) One Utilities Equipment Specialist,
Utilities Department.
(d) One Equipment Operator II, Field
Maintenance Division.
Volume 43 - Page 79
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(e) One Beach Maintenance Crew Chief,
Field Maintenance.
9. STAFF AND COMMISSION REPORTS -
For Council information and approval:
(a) Report from Planning Department
regarding COLLECTION OF IN LIEU
PARKING FEES.
For Council information and filing:
(b) Removed from the Consent Calendar.
10. PUBLIC HEARING SCHEDULING:
None.
11. Removed from the Consent Calendar.
12. OFF -SITE PARKING AGREEMENT ANDREW'S
RESTAURANT - Acceptance of an Off -Site
Parking Agreement with James A. Carter and
Sharon A. Carter (Andrew's Restaurant),
for a portion of the required parking
spaces in conjunction with USE PERMIT
NO. 3328, which permitted the
establishment of a restaurant located in
the Recreational and Marine Commercial
area of the Mariners Mile Specific Plan
at 2751 West Coast Highway, Newport
Beach. (Report from Planning
Department)
13. RESUBDIVISION NO. 867 - Approve a
subdivision agreement guaranteeing
completion of the public improvements
required with Resubdivision No. 867 (3636
Birch Street in the Newport Place
Planned Community); authorize the Mayor
and City Clerk to execute subject
agreement; accept the offer of
dedication of an easement for water line
proposed as shown on Resubdivision No.
867; and accept the offer of dedication
of vehicular access rights to Bristol
Street except the existing driveway as
shown on Resubdivision No. 867. (Report
from Public Works Department)
14. SPECIAL EVENT PERMIT APPLICATION NO.
89 -042 - Approve, subject to conditions
in the staff report, temporary street
closure of Via Oporto at Lido Marina
Village on Tuesday, April 11 through
Monday, April 17, 1989, from 11:00 a.m.
- 6:30 p.m., for the 16th annual
In- the -Water Boat Show by Duncan
McIntosh Company, Inc. (Report from
Business License Supervisor)
Volume 43,- Page 80
(68)
Agm/
ew's
(38)
Resub 867
(84)
Permit /Spcl
Evnt#89 -042
(65)
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15. Removed from the Consent Calendar.
16. HARBOR PERMIT APPLICATIONS: Uphold
Harbor Perm
staff's recommendation to approve,
Aplictns
subject to conditions listed in the
(51)
staff report for -
(a) Removed from the Consent Calendar -
Application No. 124 -3400.
(b) Removed from the Consent Calendar -
Application No. 130 -2686.
(c) Application No. 221 -2910 by Cannery
Apli#221-
Village Investments Partnership to
2910
build a new bulkhead bayward of
2910 and 2912 Lafayette. (Report
from the Marine Department)
17. BUDGET AMENDMENTS - For approval: I (25)
BA -054 (Refer to agenda item J -1)
BA -055, $1,770 - Transfer in Budget
Appropriations to provide for special
refuse collection for Harbor View Homes;
General Services - Refuse Fund. (Letter
from Village Way Management, Inc.,
regarding request from Harbor View and
Newport Hills Community Associations
w /memorandum from General Services General Svs
Director) (44)
BA -056, $5,300 - Transfer in Budget
Appropriations for construction of two
City entrance signs; General
Services -Field Maintenance Fund.
BA -057, $32,000 Transfer in Budget
Appropriations.(Decrease in
Unappropriated Surplus) to provide for
construction of a Bus Bay at Balboa
Boulevard and 46th Street; General Fund. PW
(Report from Public Works Department) (74)
G. ITEMS REMOVED FROM THE CONSENT CALENDAR:
1. Report to the City Manager regarding Planning
ACTIONS TAKEN BY THE PLANNING COMMISSION (68)
ON FEBRUARY 23, 1989, was presented.
Motion was made to receive and file the
above report; but to request a staff
report relative to Modification No. 3514
(antenna dish in side yard) for
consideration on March 27, 1989.
2. Report'from Planning Department GPA 89 -1
concerning PROPOSED GENERAL PLAN . (45)
AMENDMENT NO. 89 -1, was presented, and
the following actions were taken:
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(a) A request of Marco Baljeu to amend
the Land Use Element in order to
allow the subdivision of his
property at 2953 Cliff Drive in
Newport Heights, setting a minimum
lot size standard of 5,000 square
feet. (Recommended not to initiate
- 5 Ayes, 2 Absent).
The City Clerk advised that after
the agenda was printed, two letters
in support of the subject request
were received from Marco Baljeu,
applicant, and Helen F. Kreutzkamp,
2961 Cliff Drive.
Gail Demmer, 2812 Cliff Drive,
representing Newport Heights
Community Association, addressed
the Council, and urged that the
request of Mr. Baljeu be denied.
She stated they are opposed to the
City compromising the density and
intensity standards set forth in
the new General Plan, and support
the preservation of the coastal
environment for their view parks.
Dr. Jan Vandersloot, 2221 16th
Street, addressed the Council, and
requested Planning Commission's
recommendation to not initiate a
General Plan Amendment on the
subject property be upheld in order
to preserve the coastal bluff.
X;
Hearing no other comments relative
to Item (a), motion was made to not
initiate a General Plan Amendment
at 2953 Cliff Drive, as requested.
(f) A request of Carl Kymla to amend
the Land Use Element for the Plaza
de Cafes site at Birch Street and
Von Karmen Avenue in Newport Place
to change the designation from
"Retail and Service Commercial" to
"Administrative, Professional and
Financial Commercial," and allow
the construction of an 85,300
square foot office building and
3,000 square foot restaurant.
(Recommended to initiate - 5 Ayes,
2 Absent)
Carl Kymla, applicant, addressed
the Council in support of his
request. He stated there is
somewhat of a hardship problem
involved with the Plaza de Cafes,
Volume 43 - Page 82
CPA 89 -1
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CITY OF NEWPORT BEACH
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March 13, 1989
and the project does not appear to
be feasible in the future;
therefore, they have been working
with City staff on the proposed
General Plan Amendment so that the
new project does not increase
traffic and complies with the
Traffic Phasing Ordinance.
The Planning Director advised that
when this project was originally
initiated, it was less than the
85,300 sq. ft. proposed for office
use, and the 3,000 sq. ft. proposed
for a restaurant; however, it is
intended to be a "wash" in terms of
its traffic impact, taking into
consideration the existing uses on
the site, demolishing those
structures, and constructing new
buildings with a different use, but
same traffic impacts.
Following comments, motion was made
to uphold the Planning Commission's
recommendation to initiate a
General Plan Amendment for the
Plaza de Cafes site as requested.
(e) A request of Edward Friedl to amend
the Land Use Element and the Local
Coastal Program Land Use Plan for the
Kirkwood Motel property at 4030
East Coast Highway in Corona del
Mar to change the designation from
"Retail and Service Commercial" to
"Multi- Family Residential" (20 du's
per acre). (Recommended to
initiate - 5 Ayes, 2 Absent)
Council Member Sansone stated that
he was in support of the request;
however, he would like to see
alternatives as to its use. He also
stipulated that the new structures
not exceed the height of the
already existing buildings on the
site at any point.
There being no further comments,
motion was made to sustain the
recommendation of the Planning
Commission to initiate a General
Plan Amendment on property at 4030
E. Coast Highway, subject to the
suggestions of Council Member
Sansone.
Volume 43 - Page 83
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CITY OF NEWPORT BEACH
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(c) A request of Westland Commercial
Corporation to amend the Land Use
Element and Local Coastal Program
Land Use Plan for their property
(or.the entire block) to change the
designation from "Two- Family
Residential" to "Multi- Family
Residential," and to change the
density standard in order to allow
three units on a 103.5 foot by 35
foot (3,622 square feet) lot
located at 1600 West Ocean Front on
the Balboa Peninsula. (Recommended
not to initiate - 5 Ayes, 2 Absent)
David Diem of Westland Commercial
Corporation, addressed the Council
in support of the request. He
stated it is their intention to
build three units on the subject
property, and that if they are not
allowed to proceed it would create,
a severe financial hardship due to
the high cost of the parcel.
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Following comments by the Planning
Director, motion was made to uphold
the recommendation of the Planning
Commission to not initiate a
General Plan Amendment at 1600 W.
Ocean Front.
(g) A proposal from staff to initiate a
Balboa Peninsula Zoning Density
Study which would involve
amendments to the Land Use Element
and the Local Coastal Program Land
Use Plan, as well as the
Residential Zoning Districts. The
purpose of the study would be to
reconsider raising the "Two- Family
Residential" density standards from
2,000 square feet per unit to 2,375
square feet per dwelling unit, and
also to consider changing some
"Multi- Family Residential" area to
"Two- Family Residential."
(Recommended not to initiate - 4
Ayes, 1 Abstain, 2 Absent)
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Motion was made to not initiate a
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General Plan Amendment on this
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issue at this time, but that it be
recycled with the next General Plan
Amendment submittals for
consideration.
Volume 43 - Page 84
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CITY OF NEWPORT BEACH
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Abstain x
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March 13, 1989
(i) A request of Rockwell International
to amend the Land Use Element for
property located at 4311 Jamboree
Road to increase the allowed
development by 69,000 square feet.
(Recommended to initiate - 5 Ayes,
2 Absent)
Council Member Sansone stated that
inasmuch as he is a former employee
of Rockwell International, the
applicant, he will abstain from
voting on this matter. Therefore,
motion was made by Council Member
Turner to uphold the Planning
Commission's recommendation to
initiate a General Plan Amendment
at 4311 Jamboree Road.
(b) A request of Blanco Investments and
Land, Ltd. (on behalf of Harbor
Lights Hui, owners of John Dominus
Marina) to amend the Local Coastal
Program Land Use Plan and the
Mariners Mile Specific Area Plan as
they relate to incentive use
requirements for their property at
2901 West Pacific Coast Highway, in
Mariners Mile. (Recommended to
initiate - 5 Ayes, 2 Absent)
(d) A request of Russell Fluter, Charles
Pigneri, and Paul Balalis to amend
the Land Use Element and the Local
Coastal Program Land Use Plan for
their property at 20th Street and
the Rhine Channel, to change the
designation from "Recreation and
Marine Commercial" to "Single -
Family Detached" allowing the
construction of three single - family
homes on the 12,000 square foot
parcel in the Cannery Village/
McFadden Square area. (Recommended
to initiate - 3 Ayes, 2 Abstain, 2
Absent)
The Planning Director advised, as a
point of information, Russell
Fluter has indicated to him that he
is no longer a part of the subject
application.
Volume 43 - Page 85
GPA 89 -1
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INDEX
(h) A request of David M. Stone to
GPA 89 -1
amend the Land Use Element and the
Local Coastal Program Land Use Plan
for the property located at 119
through 123'k Agate Avenue on Balboa
Island to allow automobile and
general storage in areas designated
"Retail and Service Commercial."
(Recommended to initiate - 4 Ayes,
1 No, 2 Absent)
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Concerning Items (b, d and h),
motion was made to sustain the
recommendation of the Planning
Commission and initiate General
Plan Amendments on the subject
properties, as set forth in the
foregoing.
2. Report from Marine Department regarding
Harbor Perm
HARBOR PERMIT APPLICATION NO. 801 -307 to
Apli #801 -307
uphold staff's recommendation to deny
Buetell
request by MIKE BUETELL for approval of
(51)
a revision to his residential pier
bayward of 307 Grand Canal, for reasons
in the staff report, was presented.
The City Manager pointed out that the
proposed revisions, as requested by the
applicant, had been constructed in the
past without an approved permit, and
therefore, the applicant is requesting
approval of the revisions after the
fact. The applicant has added two boat
davits to the existing dock to allow
storage of vessels on the dock. The
adopted Standard Drawings for structures
in Grand Canal do not allow boat davits
to be installed on the dock; the main
consideration being that the Grand Canal
is very narrow and it is essential to
restrict the size of structures on the
canal. Additionally, the applicant
proposes an 8' x 8' float adjacent to
his pier. The purpose of this float is
to allow the applicant to berth a small
vessel on the float and allow it to be
berthed in such a way that it will
remain out of the water. It is the
recommendation of the Marine Department
that the application be denied, inasmuch
as: 1) the pier, as constructed, does
not conform to the City's Standard
Drawings; and 2) the proposed float does
not conform to the City's Harbor Permit
Policies regarding structures in Grand
Canal.
Mike Buetell, applicant, 307 Grand
Canal, addressed the Council in support
of his request. He stated that he would
Volume 43 - Page 86
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like to keep his kayak in front of his
CPA 89 -1
house where it has been stored for many
years. The pier extends 24" further
than the 316" limit the City policy
allows, and the davits have been
installed since 1927. He stated that no
views are blocked as a result of stored
vessels on the dock, nor would his 10'
boat, which would be berthed on the
proposed 8' float, obstruct any views.
He also commented that there are permits
existing in the 200 block of Grand Canal
for two piers which extend out further
than his pier.
Tony Melum, Tidelands Administrator,
addressed the Council stating that Grand
Canal is unique in that it is very
narrow, and the City Standards allow for
just two dock configurations, inasmuch
as there is a potential for navigable
problems; properties are very close
together; and the narrowness of Grand
Canal. There is also a potential for
congestion, as the policy restricts the
number of boats allowed at each
residence, and if the subject request is
approved it could set a precedent for
other requests.
Following discussion, motion was made to
refer the subject application to the
Tidelands Affairs Committee for review
and report back.
4. Report from the Marine Department
Harbor Perm
recommending approval of Application No.
ApliU124-
124 -3400 by Duncan McIntosh to
3400
temporarily revise the commercial docks
(51)
bayward of 3400 Via Oporto, subject to
conditions in the staff report, was
presented.
The City Attorney recommended that
Condition No. 9 be added to the
application, as follows:
"Applicant shall, prior to
March 28, 1989, provide City with
an additional insured endorsement
naming the City of Newport Beach,
and providing coverage of at least
$1 Million in combined single - limit
for any loss or liability related
to the construction use and
occupancy of all structures
authorized by this permit, as well
as all other activities of the
applicant associated with the
In -The- Water- Show."
-Volume 43 - Page 87
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CITY OF NEWPORT BEACH
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5.
Duncan MacIntosh, applicant, addressed
the Council and stated he had no
objections to the additional condition.
In view of the foregoing, motion was
made to approve Harbor Permit
Application No. 124 -3400, subject to
conditions in the staff report,
including Condition No. 9, as
recommended by the City Attorney.
Report from the Tidelands Affairs
Committee recommending approval, subject
to conditions in the staff report, of
HARBOR PERMIT APPLICATION NO. 130 -2686
by Robert Cohen
to revise the
residential pier and slip bayward of 2686
Bayshore Drive, was presented.
Robert Cohen, applicant, 2686 Bayshore
Drive, addressed the Council and stated
he is requesting to extend his dock to
berth the new boat, which was just
built. He has met with both of his
neighbors, and has moved the dock as
much as he can in order to accommodate
the neighbor to the north.
Frank Celiberti, 2692 Bayshore Drive
(Mr. Cohen's neighbor to the north),
addressed the Council in opposition to
the request. He stated that Mr. Cohen's
boat is 125' long and approximately 25'
to 30' high, weighing 110 tons, and as a
result, there will be a blind spot of
350 feet on the waterways, which could
cause an accident with vessels
approaching from different angles. He
also felt that heavy winds could cause
the boat to come loose from the dock and
cause considerable damage, and
recommended the vessel be permitted to
dock at the subject location for loading
and unloading purposes only.
Tony Melum, Tidelands Administrator,
addressed the Council and stated there
are a number of locations in the harbor
where there are blind spots, and he felt
the "prudent" yachtsman would have to
take that into consideration and handle
his vessel accordingly. There are also
vessels in the harbor the size of Mr.
Cohen's. As to the size of the proposed
dock, the City will require it be
constructed according to City Standards
and reviewed by Public Works Engineering
staff.
Volume 43 - Page 88
Harbor Perm
Apli#130-
2686
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INDEX
Council Member Watt, member of the Harbor Perm
Tidelands Affairs Committee, stated that Apli$130-
the Committee met to review the subject 2686
application, along with Mr. Burnand
(neighbor to the west)., and it was felt
that the problems associated with Mr.
Burnand's property could be alleviated
if the dock were turned somewhat. Since
the Committee met, the applicant has met
with adjacent property owners in an
attempt to address their concerns. As a
result of those meetings, the applicant
has angled his dock to the east to
address the perceived berthing problems.
The applicant also indicates that the
vessel to be berthed at the revised
float will not extend bayward of the
float. The applicant has also revised
the proposed pier so that it now
conforms to City Standards, which have
been in effect since 1964.
Mr. Celiberti addressed the Council
again, and reiterated his concerns with
regard to what could happen should heavy
winds occur, and urged that the subject
vessel not be allowed to dock at the
"point." He felt the boat should be at
a location where it would be better
protected, such as Lido Boat Yard.
Mr. Cohen addressed the Council again,
and stated he will have a professional
crew aboard his yacht; the boat is a
long -time dream of his, and he would not
leave it in a precarious location; he
intends to do extensive cruising with
the yacht, and therefore, it will not be
docked in the harbor on a permanent
basis; his crew will monitor the
weather, and if necessary, relocate the
vessel.
In response to question raised by
Council Member Sansone rearding
liability, the City Attorney advised
that harbor permitees are required to
defend and indemnify the City in the
event of any liability that may arise
due to the granting of any permit or
activities authorized by the permit.
X
In view of the foregoing, motion was
made to approve Harbor Permit
Application No. 130 -2686, subject to
conditions in the staff report, to
temporarily revise the commercial docks
bayward of 2686 Bayshore Drive.
Volume 43 - Page 89
•
Motion
All Ayes
Motion
All Ayes
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CITY OF NEWPORT BEACH
MINUTES
C
G A March 13, 1989
E2
A
H. ORDINANCES FOR ADOPTION:
None.
I. CONTINUED BUSINESS:
1. Letter from Balboa Peninsula Point PB &R /Beach
Association requesting date to consider Closure
BEACH CLOSURE, was presented. (62)
Recycled report dated January 23, 1989
from Parks, Beaches and Recreation
Director.
Motion was made to establish April 24,
1989, as the date for review of beach
closure issue.
J. CURRENT BUSINESS:
1. Report from Public Works Department Refuse Tsfr
concerning REFUSE TRANSFER STATION, was Station
presented. C -2723
(38)
The Public Works Director summarized his
report, noting that due to the scope of
work for this project, the City required
that bidders possess a Class "A" general
engineering contractor license from the
Contractors State License Board, which
the low bidder, Mac Group, Inc., does
not hold. In addition, in checking the
references that were supplied with the
proposal of the low bidder, it appeared
that their experience is primarily in
remodeling projects and the construction
of masonry and frame structures. He,
therefore, recommended that the City
Council reject the bid of Mac Group,
Inc., pursuant to the written findings
attached to the staff report designated
as Exhibit "C."
In view of the foregoing, motion was
made to:
(a) Make and adopt findings that
the lowest monetary bidder,
Mac Group, Inc., Design &
Development, dba, A & M Design of
Irvine, is not the "lowest
responsible bidder" in the
sense the word responsible
means having-the quality,
fitness and capacity to
satisfactorily perform the
work; and reject the bid of
Mac Group, Inc., Design &
Development; and
Volume 43 - Page 90
•
Motion
All Ayes
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CITY OF NEWPORT BEACH
MINUTES
9N March 13, 1989
l�,e to
x
(b) Award Contract No. 2723 to
Hines Construction in the
amount of $214,044 and
authorize the Mayor and City
Clerk to execute Contract No.
2723 for REFUSE TRANSFER
STATION; and
(c) Approve budget amendment in
the amount of $210,000 to
complete the project.
2. Letter from Newport Center Npt Ctr
Transportation Management Association Trap Mgm
requesting a Council appointee to the Asn
NEWPORT CENTER TRANSPORTATION MANAGEMENT (24)
ASSOCIATION, was presented.
Motion was made to defer appointment of
City's representative on the Newport
Center Transportation Management
Association Board of Directors to
April 10, 1989.
3. Report from the City Manager concerning IBalboa Bay
the MEMORANDUM OF UNDERSTANDING WITH THE Club /MOU
BALBOA BAY CLUB, was presented. C -519
(38)
The City Clerk advised that after the
agenda was printed, three letters were
received in opposition to the suggestion
of Council Member Hart to convert the
terrace apartments on the Balboa Bay
Club site to a park. In addition, four
telegrams and three telephone calls were
received in opposition to the proposal;
all of which are on file in the Clerk's
office.
The City Manager summarized his report,
in part, as follows:
"The original Balboa Bay Club (BBC)
lease was signed on March 24, 1948
and was to have expired on August
31, 1998. On June 10, 1985 the
City entered into a Memorandum of
Understanding with the BBC
outlining procedures for the
consideration of a new 25 -year
lease. On May 12, 1986 the City
Council approved of the new lease
adding 12 years to the original
lease and increasing the rental
payments to the City. Both the
1985 MOU and the 1986 agreement
required the BBC to prepare a new
redevelopment plan for the BBC
consistent with the newly adopted
City General Plan and Land Use
Element.
Volume 43 - Page 91
•
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CITY OF NEWPORT BEACH
MINUTES
March 13, 1989
"On February 13, 1989
representatives of the BBC appeared
before the City Council at the
Study Session and presented the
conceptual redevelopment plan to
the City. This conceptual plan is
consistent with the newly adopted
City General Plan. During the
presentation of February 13, it was
stated to the City Council that a
new MOD would be presented on
March 13 for the Council's
consideration, which is attached, to
the staff report.
"The reason for the MOU is that the
BBC will spend in excess of $1
Million to prepare all plans,
specifications, environmental
impact reports, and agreements with
the Coastal Commission. This MOU
will give some assurance to them
that for this expenditure of funds
the City will, in good faith,
consider a 50 -year term lease,
provided the City Council agrees
with the rental terms and
conditions. Finally, it is the
BBC's contention that the large
sums of money needed to implement
the redevelopment plan will require
more than 25 years to amortize."
The City Manager advised that the plans
for the BBC include renovation of the
Club's facilities, additional public
access from the easterly most portion of
the Club, and additional parking, all of
which have to be submitted to the
Coastal Commission, Planning Commission
and City Council. Also, there will be
informal meetings held with the
neighboring homeowner associations prior
to this item coming back to the Council.
The City Manager reviewed the proposed
MOD, in part, as follows:
A. On March 24, 1948, prior to
the effective date of the City
Charter, City and Club entered
into a fifty (50) year lease
of certain City -owned harbor
frontage lands terminating on
August 31, 1998.
B. On June 10, 1985, the City and
the Club entered into a
Memorandum of Understanding
(1985 MOU) providing for,
Volume 43 - Page 92
oa Bay
/MOU
G9�pQ�G 'P� s
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CITY OF NEWPORT BEACH
March 13, 1989
MINUTES
among other things, the
extension of the existing Club
Lease for a period of up to
twenty -five (25) years upon
satisfaction of certain
conditions relating to
establishing current fair
market rent for the leased
premises.
C. On May 12, 1986, the City
Council of City approved a new
lease between City and Club
having an additional term of
twelve (12) years for a total
of twenty -five (25) years
terminating in the year 2011
(New Lease).
D. The 1985 MU and the New Lease
required Club to prepare a new
Master Plan for the Club
property consistent with the
City General Plan and Land Use
Element. The New Lease
further provided for the City
to consider an additional
lease term extension of the
financing and implementation
of the new Master Plan.
E. The Club has completed
preparation of the Plan and
filed with the City a vesting
tentative map incorporating
said Plan. The application
for the vesting tentative map
has been deemed complete by
the City.
P. In order to complete details
of the Master Plan, the Club
will be required to make a
major financial commitment in
retaining the necessary
consultants.for the
preparation of the
architectural engineering
plans and traffic studies, as
well as paying the cost of the
consultant retained by the
City to prepare the
environmental impact report
(EIR).
G. Before the Club makes
substantial additional
financial commitments to the
Master Plan, the City and Club
desire to reach an
understanding regarding the .
Volume 43 - Page 93
Bay
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CITY OF NEWPORT BEACH
March 13, 1989
MINUTES
terms and conditions under
which the City would consider
a further extension of the
Club Lease for a period of up
to fifty (50) years consistent
with the provisions of the
1985 MOU and the New Lease.
Implementation of the Master
Plan will require further
major financial commitments
for the new improvements and
necessitate a longer lease
term to finance and amortize
these new improvements.
The City Manager stated that there are
some Council Members who have indicated
objections to the City entering into
another 50 -year lease with the BBC; and
therefore, a provision was placed in the
MOU which states:
"Upon City approval of the plan,
the plan, EIR and associated
entitlements and permits, City
agrees to a further lease extension
having a maximum total term of
fifty (50) years subject to mutual
agreement on terms, conditions and
rental rates."
Mayor Pro Tem Plummer expressed her
concerns as to whether the City Council
actually had the authority to enter into
a 50 -year lease under the Charter
provisions, or whether the issue should
be voted on by the electorate.
The City Attorney, in response to Mayor
Pro Tem Plummer's comments about the
upcoming measure referring to the River
Avenue property, advised that the
proposed measure cannot be compared with
the BBC, unless one were to assume that
the City was going to lease the property
to someone to build a house the City
would own at the end of the 50 -year
term. The provision in Section 420 of
the Charter that allows the Council to
go beyond the normal 25 -year limit on
contracts simply requires a lease to
provide for City ownership of
improvements at the end of the term.
The other provision in the Charter that
is implicated with the BBC lease states
that the City cannot sell or lease
waterfront property without the vote of
the people. However, the exception to
that rule is the fact that the property
was under lease before the effective
date of the Charter, which was
January 7, 1955.
Volume 43 - Page 94
Bay
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CITY OF NEWPORT BEACH
MINUTES
C
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Council Member Hart stated it is her Balboa Bay
interpretation of the Charter that the Club /MOU
Council cannot enter into any agreement
with respect to City property for a term
longer than 25 years.
Council Member Hart also referenced the
recent newspaper article in the Daily
Pilot indicating her desire to convert
the Bay Club Terrace Apartments into a
park, and stated it was not her
intention to "kick anyone out into the
street," and pointed out that it was
only two years ago the City extended the
current lease another 12 years, leaving
23 years remaining on said lease.
Council Member Hart stated: "This
evening is not a testimonial for the
BBC, and if it were, there would be a
bunch of roses being thrown out to the
Club, as they do a good job, but for me
to go along with the MOU, I would be
promising to consider a 50 -year lease,
and in my opinion, the City Council does
not have the authority. The BBC
property was given to the City for
public use by James Irvine in 1928, and
since 1948, the City's property has been
leased to the BBC. Approximately
$269,000 in revenue is received from the
BBC for the 'uplands' portion of the
lease, not including the Tidelands, or
where the boats dock. No one in the
City is more fiscally conservative than
I, and I am very careful as to what I
support. What I am asking the people in
Newport Beach is for a 'vision,' and
this is not the first time I have come
to the Council,to request a certain
piece of property be analyzed for future
open space. Everyone living in the City
is living here because of the water,
enjoyment of boating activities, visual
view of bay and 'ocean, ocean breezes,
and sunsets over the water. I am asking
the Council to look at the future as you
drive down PCH, walk or bicycle, at
approximately 5 acres of open space on
the narrow west end of the BBC looking
over the water. I have no intention of
ever asphalting it in for a parking lot;
it's not a beach, and the boats would
remain, but it would be a place with
some green area where people could go to
enjoy looking at the water. I think
this would really be a 'dynamite'
statement for what our City means to all
of us who live and work here. It would
Volume 43 - Page 95
Motion
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CITY OF NEWPORT BEACH
EMSERS MINUTES
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wAq y9� n0� 9�
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N INDEX
also leave the majority of the property, Balboa Bay
approximately 10 acres, under lease with Club /MOU
the BBC. The BBC's new master plan will
not be affected by what I have proposed
this evening. In conclusion, this
property already belongs to the City of
Newort Beach; the loss of revenue would
be minimal; we do not have the authority
to enter into a 50 -year lease; and yes,
we can go to the people for a vote on
this issue; the life of the Terrace
apartments will be more than 45 years
x old in the year 2011, and therefore, my
motion will be to continue the MOD, as I
would like to work with the BBC, and
bring this item back at a later date."
Discussion ensued again with regard to
whether the City Council can, or cannot
legally enter into a 50 -year lease with
the BBC, wherein reference was made to:
"Charter Section 420. Contracts.
Restrictions. The City Council
shall not have the power to make or
authorize any contract or lease or
extension thereof for a longer
period than twenty -five years
unless said contract, lease or
extension be approved by a
majority of the qualified electors
of the City voting on such question
at any election. A contract, lease
or extension for a longer period
shall be valid without such
approval if it provides for the
acquisition by the City at the end
of such period of the real or
personal property so leased or
contracted for. This Section shall
not apply to any franchise granted
pursuant to the provisions of this
Charter or to any contract for the
furnishing, or acquisition of the
products, commodity or services of
any public utility."
The City.Attorney stated it was his
opinion that the City Council had the
authority to enter into a 50 -year lease
and that approval from the electorate
was not necessary.
It was also indicated that due to
various interpretations of the Charter
provision, it might be prudent to seek
an outside legal.opinion.
Volume 43 - Page 96
•
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CITY OF NEWPORT BEACH
MINUTES
O
0 fl` March 13, 1989
F �
Dennis D. O'Neil, 18881 Von Karmen,
Irvine, Attorney representing the BBC,
addressed the Council and stated he
helped prepare the proposed MOU with the
assistance of the City Attorney, which
he felt was consistent with prior
actions of the City Council; he
indicated their disagreement with
Council Member Hart's position; stated
they have filed a vested tentative map
for the redevelopment of the site and
under State law are required to process
that map within a period of 12 months.
They have estimated $1 Million for the
redevelopment and would like to have
assurance from the City, providing they
comply with the provisions of the MOU,
to enter into a lease of up to 50 years.
He pointed out the public uses connected
with the property, and felt there will
be the "best of both worlds" as the
public will have access to the site. At
the same time, maximum use will be made
of the property, hence, a maximum rental
return to the City. They feel the
proposed redevelopment will be extremely
beneficial to the public, as well as to
the City in terms of revenue; and due to
the short time frame involved, they
would like the Council to act favorably
on the subject item at this meeting.
William Ray, Chairman of the BBC,
addressed the Council in, response to
Council Member Hart's comments, stating
that there never was any condition
placed on the property regarding open
space or limiting it to a specific area,
when James Irvine gave the City the
subject property. The revenue the City
receives from the BBC for the apartments
referred to by Council Member Hart is
approximately $500,000. If the MOU is
approved and implemented, an additional
approximate $14 - $35 Million would be
generated as rental income. It would
not be feasible for them to proceed with
their master plan for redevelopment if
the property is divided as suggested by
Council Member Hart, and it would also
not be practical to obtain financing for
only a 25 -year lease. With regard to
interpretation of Section 420 of the
City Charter, they have contacted
numerous legal counsels who have
indicated, in their opinion, the City
Council can approve a 50 -year lease
without the vote of the electorate.
They are opposed to delaying the MOD due
Volume 43 - Page 97
Balboa Bay
Club /MOU
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CITY OF NEWPORT BEACH
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to available financing, and inasmuch as
they have already reviewed the Charter
issue on several occasions.
Jack Carnahan (no address given)
addressed the Council in opposition to
the suggestion to convert the Terrace
apartments to open space, stating he
felt it would resemble Laguna Beach's
main beach. He also felt there was
adequate open space throughout the City.
David Shores, 1942 Galaxy Drive,
addressed the Council and concurred in
the remarks of Mr. Carnahan. He felt
the City did not need to spend
additional taxpayers monies to maintain
parks and beaches that would attract
visitors from areas outside the City.
He also felt that many of the City's
recreational facilities are not utilized
and indicated additional open space was
not needed. He spoke in support of the
BBC noting it added prestige to the City
and has been actively involved in
community affairs.
Elon Wells, 20 Jetty Drive, addressed
the Council and stated that during his
extensive travels throughout the world,
he has come across numerous people who
are aware of Newport Beach because of
the Balboa Bay Club. He also felt it
would be "tragic" for the City to devote
five acres to a park due to the amount
of increased revenue that will be
generated as a result of redevelopment.
Les Steffensen, 735 Cameo Highlands,
addressed the Council and stated he
helped author the City Charter, and that
Section 420 was written with the
intention to exempt existing leases from
the provision of the 25 -year limit.
Further, that since the BBC entered into
their lease in 1948 and the Charter was
not effective until 1955, he felt they'
are exempt, and the City Council could
authorize a 50 -year lease without going
to the vote of the people. He also
spoke in support of the BBC's request
for redevelopment and indicated he was
not in favor of Hart's suggestion
relative to a park.
Tom Deemer, 1901 Kings Road, and
President of the Balboa Bay Club,,
addressed the Council and clarified a
comment made by Council Member Hart
earlier regarding the amount of revenue
the City receives from the "uplands" .
Volume 43 -;Page 98
Balboa Bay
Club /MOU
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CITY OF NEWPORT BEACH
tp 9 y9y �0
\G�tA
A\ March 13, 1989
MINUTES
portion of their lease. He also pointed
out that there are 145 families living
in the Terrace apartments at the Club,
which has been there since 1967. The
average age residing in the apartments
is 60.8 years old; 52% are widows or
widowers, and they do not anticipate
that the mix will change between now and
the time the building may be torn down
in 23 years.
Jim Dale, 118 Apolena Avenue, addressed
the Council in support of the BBC,
citing their generosity to the
community. He felt the revenue
generated from the BBC was important to
the City in order to provide services to
its residents, and that the proposed
park would create added congestion on
Pacific Coast Highway.
Don Vance, 1221 W. Coast Highway,
addressed the Council in favor of the
MOD and in opposition to convert a
portion of the BBC to a park. He
referenced his letter of this date, and
stated the Council was elected to do a
job; therefore, this issue should not be
put on the ballot.
Bill Lusk, member of the BBC, addressed
the Council in support of their request.
As Chairman of the Annual Christmas Boat
Parade, he stated he has had an
opportunity to view the many public
accesses to the bay, of which there are
some 40+ areas to view the parade from
the water. He stated he did not know of
another City with more open space than
Newport Beach. Relative to the
suggestion for a park, he felt it would
create serious traffic problems and that
the park itself would be the City's most
expensive open space.
Dr. Jan Vandersloot, 2221 16th Street,
addressed the Council in support of the
proposal for a park, as he is concerned
with preserving open space on the bay.
He resides in Newport Heights and has
seen loss of views due to development in
Mariners Mile; also, when the BBC was
constructed, they did not give
consideration to the view from the view
parks above Pacific Coast Highway.
Paul Salata, 98 Linda Isle, addressed
the Council in support of the BBC and
stated he felt it would not be in the
best interest of the City to convert the
Terrace apartments into a park.
Volume 43 - Page 99
Balboa Bay
Club /MOD
•
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CITY OF NEWPORT BEACH
MINUTES
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Herbert Sutton, 912 Via Lido Nord,
addressed the Council and spoke in
support of the revenue the City receives
from the BBC. He also felt that if the
Council is looking for another area for
a park, he would suggest the area south
of Cameo Shores where there would not be
a parking problem, and one could look
out over the ocean and also swim.
Pat Michaels, 4521 Cortland Drive,
addressed the Council and stated he felt
the BBC was a "super citizen" in the
community, and that the proposed park
could not offer the same kind of
contributions the Club has given the
City over the years.
Joe Perricone, resident of the BBC,
addressed the Council and stated he felt
the proposed park idea was an
"irresponsible proposal."
Anne Slemons, resident of the BBC,
addressed the Council in opposition to
the proposed park, stating that if the
site were converted to open space one
still could not swim in the area due to
pollution in the bay.
In response to question raised by
Council Member Sansone regarding the
Terrace apartments, Mr. Ray advised that
it is their intention to only do
cosmetic remodeling to the structure,
inasmuch as it was constructed in 1967
and is a Class "A" type building.
Mayor Strauss stated he cannot support
the MOU at this time as he would like to
learn more about the proposed 50 -year
lease commitment.
Council Member Cox stated he will not
support Council Member Hart's motion for
a number of reasons. He felt this
subject was not new to the Council and
discussions have been ongoing since
1985. He also felt the proposed 50 -year
lease is "right and reasonable," and
entitled by the original Charter. From a
business point of view he cannot
rationally come to grips with anything
other than a 50 -year lease. It also
does not make any sense to him to
demolish the Terrace apartments in
return for open space at this site. The
BBC has been an excellent citizen in the
City and he felt the Council should
support their efforts and the residents
Volume 43 - Page 100
Balboa Bay
Club /MOU
CITY OF NEWPORT BEACH
\a�9 y9� �0
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Noes I x I x I x ix I x
•
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that reside there; and in addition,
allow the Club to make it a "first
class" facility, so in turn, the City
will benefit as well.
X In view of the foregoing comments,
substitute motion was made by Council
Member Cox to approve the MOU and
authorize the Mayor and City Clerk to
execute the subject document.
Council Member Turner indicated he
concurred in some remarks made by
Council Member Cox, and pointing out
that the BBC has been a good neighbor in
the community for almost 50 years; and
that much of the City's history stems
from events at the Club. Inasmuch as
the City did enter into the subject
lease with the BBC prior to the Charter
being written, and due to the legal
opinion given by the City Attorney, and
previous City Attorneys, he felt the
Council had the authority to enter into
a 50 -year lease agreement. He also
noted that additional revenue will be
generated as a result of a new lease
which will be of great benefit to the
City. He felt the City had adequate
beaches, and that an additional five
acres was not necessary.
Council Member Sansone addressed the
concerned residents of the Terrace
apartments, who were in attendance, and
emphasized that it is not the City's
intention to immediately "tear down" the
building, as the current lease is in
effect for 23 more years. With regard
to whether the,City Council has the
authority to enter into a 50 -year lease,
he felt the staff should seek outside
legal counsel prior to taking action on
the MOU.
X The substitute motion made by Council
X Member Cox was voted on, and FAILED.
Council Member Hart restated her motion
as follows:
"To continue this item to April 24,
1989, to allow Council Member Hart
and other Council Members to meet
with representatives of the BBC."
Council Member Hart stated it was her
intention in deferring this item to
discuss with the BBC, the feasibility of
dividing the Terrace apartment property
without interferring with the existing
Volume 43 - Page 101
Balboa Bay
Club /MOU
CITY OF NEWPORT BEACH
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•
Ayes
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Motion
All Ayes
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X
lease, and to determine if the City can
help the Club to achieve a new 50 -year
lease on the remainder of the property
proposed for redevelopment.
Council Member Sansone moved an
amendment to the above motion, directing
staff to obtain an "independent" legal
opinion as to whether the City Council
has the authority to approve a 50 -year
lease on the subject property.
x I The amendment was in agreement with
Council Member Hart, and the motion, as
revised, was voted on and carried.
4. Oral Report and recommendations Monorail/
concerning MONORAIL AT JOHN WAYNE John Wayne-
AIRPORT: 0/C Arprt
The City Manager stated that the Council
has recieved a revised MOU dated
March 13, 1989, which stipulates there
will be no terminal -like functions
performed by the proposed John Wayne
Airport monorail, and is to be executed
by the Cities of Irvine, and Newport
Beach and the County of Orange. If the
MOU is approved by Irvine and the
County, then the City can remove their
protest of the Negative Declaration
prepared for the project by the County
and the project can proceed.
In view of the foregoing, Mayor Strauss
moved the following motion:
"To authorize the Mayor and City
Clerk to execute a Memorandum of
Understanding with the County of
Orange and City of Irvine regarding
the proposed John Wayne Airport
Monorail, subject to the following:
(1) The MOU shall be the same as
the document submitted to the
City Council this afternoon
with the City Attorney
authorized to make minor
non - substantive changes; and
(2) The MOU will not be executed
until a Joint Policy
Memorandum, similar to the
document submitted to the City
Council this afternoon has
been approved by the City of
Irvine; and
Volume 43 - Page 102
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CITY OF NEWPORT BEACH
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March 13, 1989
(3) The City Council Ad Hoc
Airport Committee is
authorized to approve changes
to the MOU, or Joint Policy
Memorandum, as it deems
appropriate.
Meeting adjourned at 10:30 p.m.
ATTEST:
The agenda for this meeting was
posted on March 9, 1989, at 8:45
a.m., on the City Hall Bulletin
Board located outside of the City
of Newport Beach Administration
Building.
U
Volume 43 - Page 103
Monorail /'
John Wayne -
O/C Arprt