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HomeMy WebLinkAbout02/09/1987 - Regular MeetingCOUNCIL MEMBER`S, CITY OF NEWPORT BEACH REGULAR COUNCIL MEETING PLACE: Council Chambers TIME: 7:30 P.M. DATE: February 9, 1987 v MINUTES INQEX 1 mt /Swr Ln rch St 0) 87 -21 87 -4 645 Mayor Cox welcomed the visiting members from the Okazaki Citizen Mission. Present x x x x x x x A. ROLL CALL. Council Member Strauss thanked all those who expressed concern during his recent illness. Motion x B. The reading of the Minutes of the Ayes x x x x x x Meeting of January 26, 1987, was waived, - ..Abstain x approved as written, and ordered filed. Motion x C. The reading in full of all ordinances All Ayes and resolutions under consideration was waived, and the City Clerk was directed ' to read by titles only. D. HEARINGS: 1. Mayor Cox opened the public hearing regarding VACATION AND ABANDONMENT OF A PORTION OF THE SEWER EASEMENTS WITHIN "MACARTHUR" COURT, RESUBDIVISION NO. 786 (parcels 1 and 2 of Parcel Map 120/44 -45 [Resubdivision No. 5791, located at 4655 Birch Street, on the northeasterly corner of Birch Street and MacArthur Boulevard, in the Koll Center Newport Planned Community. Report from the Public Works Department, . was presented. Hearing no one wishing to address the Council, the public hearing was closed. Motion x Motion was made to adopt Resolution No. All Ayes 87 -21 vacating and abandoning an easement and sewer line northeasterly of Birch Street between MacArthur and Von Karman; and direct the City Clerk to have the subject resolution recorded by the Orange County Recorder. 2. Mayor Cox opened the public hearing regarding PLANNING COMMISSION AMENDMENT NO. 645, PROPOSED ORDINANCE NO. 87 -4 - a request of ALAMO RENT A CAR, INC., Fort Lauderdale, Florida, to amend a portion of Districting Map No. 61 so as to reclassify property located at 3500 Irvine Avenue from the A -P -H District to the C -1 -H District; and the acceptance of an Environmental Document. Volume 41 - Page 57 mt /Swr Ln rch St 0) 87 -21 87 -4 645 CITY OF NEWPORT BEACH COUNCIL MEMBERS Motion x Ayes x x x x x x Abstain x • Motion x Ayes x x x x x x Abstain x • MINUTES February 9, 1987 Report from the Planning Department, was presented. Hearing no one wishing to address the Council, the public hearing was closed. Motion was made to adopt ORDINANCE NO. 87 -4, being, AN ORDINANCE OF THE CITY OF NEWPORT BEACH AMENDING A PORTION OF DISTRICTING MAP NO. 61 TO RECLASSIFY SUBJECT PROPERTY FROM THE A -P -H DISTRICT TO THE C -1 -H DISTRICT; and accept the Environmental Document. 3. Mayor Cox opened the public hearing regarding: GENERAL PLAN AMENDMENT NO. 86 -3(B), an GPA 86 -3(B) amendment to the Land Use Element of the (45) Newport Beach General Plan to permit an additional 2,740± sq. ft. of office floor area in the BLOCK 700/800 PLANNED COMMUNITY OF NEWPORT CENTER, and the acceptance of an Environmental Document; and PLANNING COMMISSION AMENDMENT NO. 643, an amendment to the BLOCK 800 PLANNED COMMUNITY DEVELOPMENT STANDARDS to permit an additional 2,740± sq. ft. of floor area in the PACIFIC MUTUAL PLAZA TOWER II for a laundry -dry cleaner pick -up area, auto detailer (for on -site tenants only), and additional mezzanine space. Report from the Planning Department, was presented. Paul Ruffing, Architect, addressed the Council and stated that he was in agreement with the recommendation of the staff and was available for questions. Hearing no one else wishing to address the Council, the public hearing was closed. Motion was made to adopt Resolution No. Res 87 -22 87 -22, adopting General Plan Amendment No. 86 -3(B) as it pertains to the Pacific Mutual Site (Block 700/800 Newport Center), and the acceptance of an Environmental Document; and adopt Resolution No. 87 -23, adopting Planning Res 87 -23 Commission Amendment No. 643 to permit additional office floor area in Pacific Mutual Financial Plaza. Volume 41 - Page 58 COUNCIL MEMBERS • Motion Ayes Abstain is • CITY OF NEWPORT BEACH x I x Ix Ix I xl XI X MINUTES February 9, 1987 4. Mayor Cox opened the public hearing regarding PLANNING COMMISSION AMENDMENT NO. 644 - a request of the J. M. PETERS COMPANY, Newport Beach, to amend the PLANNED COMMUNITY DEVELOPMENT STANDARDS of the BAYVIEW PLANNED COMMUNITY to establish provisions which allows the construction of improvements such as trellis and beam construction, patio covers, and pools and spas within reciprocal side yard easement areas. Property located at #1 Cormorant Court, between Crystal Drive and Bayview Way in the Bayview Planned Community. Report from the Planning Department, was presented. Bob Trapp, representing J. M. Peters Company, addressed the Council and stated he was available for questions. Hearing no one else wishing to address the Council, the public hearing was closed. Motion was made to adopt Resolution No. 87 -24 amending the Bayview Planned Community Development Standards to establish provisions to allow construction of improvements within reciprocal side yard easements in Area 2 of the Planned Community. 5. Mayor Cox opened the public hearing regarding LOCAL GOVERNMENT COASTAL MANAGEMENT IMPROVEMENT PROGRAM FOR IMPACT MITIGATION EQUIPMENT AND OIL SPILL PREPAREDNESS. Report from Executive Assistant to the City Manager, was presented. Hearing no one wishing to address the Council, the public hearing was closed. Mayor Pro Tem Hart read into the record the following prepared statement: "We have all been hearing about a proposal from the Secretary of Interior, Donald Hodel, since a week ago today. The new off -shore oil proposal offers no protection for either Newport Beach or Orange County. Apparently, this is his final offer. The plan is to force us to accept a 5 -year plan to lease the off -shore oil tracts for exploration and drilling. Council Member Ruthelyn Plummer and myself Volume 41 - Page 59 (94) 644 87 -24 Oil/ Pre- • Motion COUNCIL MEMBERS x CITY OF NEWPORT BEACH MINUTES February 9, 1987 have been, and will continue to Offshr Oil/ meet with members of Congress and Spill Pre - local officials. We will work paredness closely also with our City Attorney's office to bring back suggested wording to our City Council at our next meeting on this off -shore issue. "Tonight we have an opportunity to vote on a management improvement program for impact mitigation equipment and oil spill preparedness, which is for existing conditions and I support the grant applications. I have also received telephone calls in support of this important program." Motion was made to direct staff to submit final grant applications, and to advise Supervisor Tom Riley of these grants and our position to offer mutual aid for our down coast area in the event of an oil spill. Council Member Plummer stated she was in support of the motion, but had some questions relative to: 1) The approximate cost to City in handling the oil which occurred in August on 44th Street, in order compare what a large oil would cost. :he spill 1985 to spill 2) Will there be some type of contingency plan to close off the entrance to Newport Harbor should there be an oil spill? Also, what kind of plan do we have to notify affected boat owners? 3) Who will be the protecting agency for the Santa Ana River Flood control areas? 4) Will the City's beach cleaning equipment be adequately equipped to handle an oil spill? The City Manager, in response to some of Council Member Plummer's inquiries, advised that, not counting the potential liability of adjacent improvements as a result of the oil spill on 44th Street, the City spent approximately $450,000 for the capping and cleaning up of the Volume 41 - Page 60 COUNCIL MEMBERS I 'A � C* �9G �'\ • Ayes Abstain Motion All Ayes • CITY OF NEWPORT BEACH X I x Ix Ix ix IX IX x MINUTES February 9, 1987 area after the fire. In addition, the City is now litigating some of the alleged liability exposure and he would not have a dollar figure on the claims for approximately six to eight months. The City Manager further stated that the proposed plan will be coordinated with the Orange County Harbor District for sealing off the harbor and attempting to prevent any outer continental shelf oil spillage in the harbor. Part of their proposal is to store, in appropriate places, necessary materials in the event of such a spill. They will also coordinate with the County protection of the flood control areas, as well as protection of City beaches. Hearing no other comments, the motion on the floor was voted on and carried. E. PUBLIC COMMENTS: 1. Gary E. Weaver (no address given) Npt Beach/ addressed the Council and stated that he Ocean Wtrs enjoys surfing and hopes the waters around Newport Beach remain as unpolluted as possible. F. CONSENT CALENDAR: The following actions were taken as indicated, except for those items removed. 1. ORDINANCES FOR INTRODUCTION: None. 2. RESOLUTIONS FOR ADOPTION: (a) Resolution No. 87 -25 to allow the CdM Wtr Mn Corona del Mar Water Main Rplem Replacement (C -2631) project to he Res 87 -25 bid informally because of urgent -2631 necessity; approve a budget (38) amendment to fund said project; and approve the plans and specifications. (Report from Public Works Department) (b) Resolution No. 87 -26 authorizing inane/ the Mayor and City Clerk to execute uditing Auditing Services Agreement, ervices awarding the bid to King, Henslee & gmt 1(38) Jackson, Inc., CPA's, for the es 87 -26 City's Fiscal Years 1986 -87, -2636 1987 -88, and 1988 -89. (Memorandum from Finance Director) Volume 4I - Page 61 COUNCIL MEMI � \0\ Gs, • • • CITY OF NEWPORT BEACH 9, 1987 3. CONTRACTS/AGREEMENTS: (a) Approve a budget amendment appropriating $75,000 from Circulation and Transportation Funds; award Contract No. 2524 to Gillespie Construction Co. for the total price of $244,792; and authorize the Mayor and City Clerk to execute subject contract for Hospital Road, Dover Drive and Balboa Yacht Basin Marina Storage Units. (Report from Public Works Department) (b) Removed from the Consent Calendar. 4. COMMUNICATIONS - For referral as indicated: (a) Removed from the Consent Calendar. MINUTES Hospital Rd/ Dover Dr/ Balboa Ycht Ban Marina Storage C -2524 (38) (b) To City Clerk for inclusion in the Misc. Rqst/ records, letters from Angela Pblc Trnsptn Coffey, and District Director Tom (52) Crandall, California Coastal Commission, in support of concept for public transit in the City. (c) Removed from the Consent Calendar. 5. COMMUNICATIONS - For referral to the City Clerk for inclusion in the records: None. 6. CLAIMS FOR DAMAGES - For denial and confirmation of the City Clerk's referral to the claims adjuster: (a) Aetna Insurance Co. for Donna Mahan, alleging claimant's vehicle was crossing intersection on green light and Police vehicle ran red signal and hit her vehicle at the corner of Bristol and Jamboree on November 17, 1986. (b) Karen Botelho alleging her vehicle was towed in error from 42nd Street on December 8, 1986; seeking reimbursement for towing violation /towing fee. (c) Gilbert and Patricia Fraide alleging two vehicles were towed away in error from 5511 Seashore Drive, on December 30, 1986, while the claimants were on vacation; seeking reimbursement of towing and storage fee, and loss of work time. Volume 41 - Page 62 (36) Ins/ COUNCIL MEMBERS • • • CITY OF NEWPORT BEACH MINUTES February 9, 1987 (c) Richard Gaydos, Jr., and Daniel Ray Gaydos/ Wyatt seeking indemnity from claim Wyatt filed by Mary D. Camilleri, involved in traffic accident at Superior Avenue n/o Coast Highway on July 6, 1985. (d) Robert John Guitar alleging arrest Guiter without proper cause, emotional distress, etc., by Newport Beach Police Department at 7920 Paisano Way, Riverside, CA on October 15, 1986. (e) Dean and Sally Phillips alleging real property damaged by City of Newport Beach, (i.e., picket fence, cement slabs, property encroached upon, etc.) at 204 44th Street from January 15 - 20, 1987. (f) Southern California Gas Company SoCAGas alleging City employee hoe operator digging to find sewer laterals cut gas service in half with backhoe at 330 St. Andrews Road on December 4, 1986. 7. SUMMONS AND COMPLAINTS - For denial and �(36) confirmation of the City Clerk's referral to the claims adjuster: (a) Laura C. Gardner vs. Richard Van De Plasch, City of Newport Beach, etc., Complaint for Personal Injuries and Negligent Entrustment involving accident at intersection of Prospect Avenue and Pacific Coast Highway. 8. REQUEST TO FILL PERSONNEL VACANCIES: (66) (Report from the City Manager) (a) Approve one Building Inspector I, Building Department. (b) Approve one Police Officer, Patrol Division. (c) Approve one Library Clerk II, Library Department. (d) Approve five Firefighters, Suppression Division. Volume 41 - Page 63 De Va. CITY OF NEWPORT BEACH COUNCL MEMBERS February 9, 1987 MINUTES 9. STAFF AND COMMISSION REPORTS - For Council information and approval: (a) Report from the City Attorney O/C-John regarding request of Orange County Wayne Arprt Aviation Council for (54) nonenforcement of condition regarding opposition to John Wayne Airport Expansion. (b) Memorandum from Police Chief PD recommending three used police (70) motorcycles be donated to Goldenwest College for use in their police motorcycle training academy. (c) Removed from the Consent Calendar. (d) Water Committee Minutes of January Utilities 30, 1987, together with report and (89) recommendation from Public Works and Utilities Departments. (e) Reports from the Police Department PD/Audit concerning Department Audit - Case (70) Management System 23A and 23B; and Community Relations. 10. PUBLIC HEARING SCHEDULING - February 23, 1987: (a) APPEAL APPLICATION - Alex Lovers and U/P.3248 Jim Parker regarding USE PERMIT NO. (88) 3248 on property located at 2632 West Coast Highway, Newport Beach, from Planning Commission denial on January 8, 1987. (b) PLANNING COMMISSION AMENDMENT NO. PCA 638 638 - A request of MCLACHLAN (94) INVESTMENT COMPANY, Newport Beach, to amend the NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT STANDARDS so as to allow 278,489 sq. ft. of additional bank and office floor area in. an eleven story building within Professional and Business Office Site No. 5; and to establish a restaurant, an athletic club, and ancillary commercial uses on the subject property which is located at 4141 MacArthur Boulevard, on the northwesterly corner of MacArthur Boulevard and Newport Place; zoned P-C; AND Volume 41 - Page 64 COUNCIL MEMBERS A 11\\ • 0 • CITY OF NEWPORT BEACH MINUTES February 9, 1987 TRAFFIC STUDY - A request of MCLACHLAN INVESTMENT COMPANY, Newport Beach, to approve a traffic study in conjunction with the construction of a 278,489 sq. ft. office -- commercial building in Newport Place. (Report from the Planning Department) 11. RESUBDIVISION NO. 736 - Accept the public improvements constructed in conjunction with Resubdivision No. 736 [Lot 4 and portions of Lots 5 and 6, Tract No. 443 located at 504 North Newport Boulevard, on the northeasterly corner of North Newport Boulevard and Orange Avenue in the Old Newport Specific Plan Area]; authorize the City Clerk to release the Faithful Performance Bond ( #B464104); and release the Labor and Materials Bond ( #B464104) in six months in accordance with applicable sections of the Civil Code. (Report from Public Works Department) 12. RESUBDIVISION NO. 831 - Approve a Subdivision Agreement guaranteeing completion of the public improvements required with Resubdivision No. 831 [a portion of Lots 1 and 3, Block 640, Corona del Mar, located at 601 Narcissus Avenue, on the northwesterly corner of Narcissus Avenue and Third Avenue in Corona del Mar]; accept offer of dedication of a 10 ft. radius corner cutoff of the intersection of Narcissus and Third Avenue; and authorize the Mayor and City Clerk to execute subject agreement. (Report from Public Works Department) 13. WATER, SEWER AND ALLEY REPLACEMENT (C -2504) - Accept the work; and authorize the City Clerk to file a Notice of Completion and release the bonds 35 days after Notice of Completion has been recorded, and with applicable sections of the Civil Code. (Report from Public Works Department) 14. SPECIAL EVENTS APPLICATION NO. 86 -290 - Approve temporary street closure for "In the Water Boat Show" at Via Oporto in the Lido Marina Village on March 31 to April 13, 1987, subject to conditions listed in the staff report. (Report from Business License Supervisor) Volume 41 - Page 65 Resub 736 (84) Resub 831 (84) (38) (65) COUNCIL MEMBERS �G�� .., �� C • CITY OF NEWPORT BEACH MINUTES February 9, 1987 15. BUILDING CODE BOARD OF APPEALS - Accept Bldg Code with regret, resignation from C.A. Bd Apels Higbie; direct City Clerk to post (24) vacancy notice and prepare Certificate of Appreciation. 16. BUDGET AMENDMENTS - For approval: I(25) (a) Mid -Year Budget Adjustments for the following: BA -061 - $1,153,257.29 Net Increase in Unappropriated Surplus; General Fund. BA -062 - $52,649.58 Net Increase in Unappropriated Surplus; Park and Recreation Fund. BA -063 - $34,392.48 Net Increase in Unappropriated Surplus; Library Fund. BA -064 - $400,000 Decrease in Unappropriated Surplus; Community' Development Block Grant Funds. BA -065 - $42,575 Increase in Unappropriated Surplus; Federal Revenue Sharing Fund. BA -066 - $27,048.52 Increase in Unappropriated Surplus; State Gas Tax (Sec. 2107) Fund. BA -067 - $30,750 Increase in Unappropriated Surplus; State Gas Tax (Sec. 2106) Fund. BA -068 - $354,000 Decrease in Unappropriated Surplus; Traffic Safety Fund. BA -069 - $26,230 Decrease in Unappropriated Surplus; Parking Meter Fund. BA -070 - $254,850 Net Increase in Unappropriated Surplus; Tide and Submerged Lands Fund. BA -071 - $306,598.10 Increase in Unappropriated Surplus; Building Excise Tax. BA -072 - $297,245.96 Increase in Unappropriated Surplus; Water Fund. (b) BA -073 - $250,000 Transfer in Budget Appropriations to provide for Corona del Mar Water Main Replacement (C- 2631); Water Main Replacement Fund. (see report with agenda item F -2(a)) Volume 41 - Page 66 COUNCIL MEMBERS 0 • Motion All Ayes Motion All Ayes 0 X x CITY OF NEWPORT BEACH MINUTES February 9, 1987 BA -074 - $175,000 Transfer in Budget Appropriations for additional water main tie -in connections that will cross Pacific Coast Highway in the area of road widening; Main Replacement Program Fund. BA -075 - $75,000 Decrease in Unappropriated Surplus and Increase in Budget Appropriations to provide for Hospital Road Widening from Newport Boulevard (State Highway 55) to North Newport Boulevard; State Gas Tax (Sec. 2106) Funds. (See report with agenda item F -3(a) BA -076 - $7,000 Transfer in Budget Appropriations for electrical repair of circuits in Computer Room; Finance -Data Processing Fund. G. ITEMS REMOVED FROM THE CONSENT CALENDAR: 1. Letter from William Wilkinson regarding PD /Animal animal offenses and nuisances on Balboa Control Bay Front, was presented. 1(70) Council Member Plummer commented on the need for improved animal control enforcement by the City's Police Department, as well as the need to train and educate dog owners as to the City's animal control regulations. She also questioned if the Police Department was successful in recruiting for the recent vacant animal control officer positions. Following comments, motion was made to refer the subject letter to the Police Department for reply, with a copy of said reply to each Council Member. 2. Report from the City Attorney NoStar Bch/ recommending the Mayor and City Clerk Aquatic Ctr execute a lease for a portion of North C -2637 Star Beach to allow construction of an (38) Aquatic Center, was presented. Motion was made to approve the subject lease with the following revision to page 42, item No. 3, "Manpowered.boat launching facilities (no motorized boat launching will be allowed), and...." 3. Letter from City of Avalon Mayor Hugh T. egi "Bud" Smith, requesting support for (48) opposition to the toxic waste dump site proposed for San Clemente Island, was presented. Volume 4I - Page 67 CITY OF NEWPORT BEACH COUNCIL MEMI Motion All Ayes • Motion All Ayes • Motion Ayes Abstain Motion Ayes Abstain • Ix x x I x I x I x I x Ix I x x I x I x I x I x Ix I x MINUTES February 9, 1987 Motion was made to refer the subject letter to the Pending Legislation and Procedural Ethics Committee, for more information and report back on February 23, 1987. 4. Report to the City Manager regarding actions taken by the Planning Commission on January 22, 1987, was presented. Motion was made to schedule a public hearing for February 23, 1987, on Use Permit No. 3229, Resubdivision No. 840, and related Traffic Study, regarding application of Harris Architects, on property located at 3000 West Coast Highway. H. ORDINANCES FOR ADOPTION: 1. Proposed ORDINANCE NO. 87 -2, being, (68) AN ORDINANCE OF THE CITY OF NEWPORT Trai BEACH REPEALING SECTION 12.40.050 (85) OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO TRAILERS ON BALBOA ISLAND, was presented with report from the Assistant City Attorney, dated January 8, 1987. Motion was made to adopt Ordinance No. 87 -2. 2. Proposed ORDINANCE NO. 87 -3, being, AN ORDINANCE OF THE CITY OF NEWPORT BEACH AMENDING SECTION 5.40.060 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO HANDBILL EXCEPTIONS, was presented with report from the Assistant City Attorney, dated January 8, 1987. Motion was made to adopt Ordinance No. 87 -3. I. CONTINUED BUSINESS: 1. Report from the City Manager, dated February 9, 1987, regarding REQUEST OF CONFERENCE AND VISITORS BUREAU, was presented. Volume 41 - wage 68 (27) (40) 3229/ Stdy 87 -2 87 -3 /Vistrs COUNCIL MEMBERS y � • • CITY OF NEWPORT BEACH MINUTES February 9, 1987 Letter from Balboa Peninsula Point Association regarding comments made at the January 26, 1987 City Council meeting. The City Clerk advised that after the agenda was printed, three additional letters were received regarding this proposal from Bill Bennett, 218 Cedar Street and Walt McCarthy, 1906 Port Bristol Circle (in opposition), and Balboa Improvement Association (in support). The City Manager referred to his report noting that the proposed agreement has been modified as follows: 1) The effective date has been changed from March 1 to April 1, 1987. 2) The reporting period as specified in paragraph 5 requires reports every January and July of each year, commencing with 1988. Discussion ensued with regard to the termination clause set forth in the proposed agreement, wherein it was pointed out that the City shall have the right to terminate the agreement, effective on the date written notice is given to Bureau in the event of any of the occurrences enumerated in the agreement. The City shall also have the right to terminate the agreement by giving ninety days' written notice. The City Attorney also advised that there is a provision in said agreement which allows for termination if the 'visitor's service fee ordinance is repealed. Mayor Pro Tem Hart commented that she had received the current list of the Bureau's Board of Directors, as requested at the last Council meeting, but she had not yet received a copy of their budget or a report relative to hotel statistics. Jerry King, President, Conference and Visitors Bureau, addressed the Council and stated that the budget referred to by Mayor Pro Tem Hart was submitted some months ago in the Bureau's original packet to the Council. With regard to their budget, they do intend to continue to charge dues to its members and it's their hope, providing the visitor's Volume 41 - Page 69 Finance/ Conf /Vistrs Bureau COUNCIL MEMBERS "00\ • • • CITY OF NEWPORT BEACH MINUTES February 9, 1987 service fee is approved, to increase that membership by some number. Their long -term hope is that those dollars would be both accounted for in the budget and available for a variety of undertakings by the Bureau. With respect to the hotel statistics referred to by Mayor Pro Tem Hart, he thought such figures were incorporated in the original agenda packet from the City's Finance Department. With regard to the Bureau's interest in the trolley, Mr. King stated that they are definitely in support of seeing the Newport Beach trolley remain, as they do consider it visitor- related and something they would benefit from. He stated that they have met with the staff and would like to make the following offer, should the City Council decide to adopt and approve the Bureau's proposal: That item 2 -d of said agreement be added to read, "that in conjunction with the City, the Bureau will develop a plan for the reestablishment of the trolley system, and if the City decides to reestablish the trolley, the Bureau agrees to participate in the funding,of that trolley by contributing $50,000 each year in two quarterly payments of $25,000 each from the visitor's service fee, and by guaranteeing to the trolley a minimum of $50,000 additional each year in revenue charters and advertising. Further, that the Bureau shall include, in each biannual report, a section analyzing the ridership and economics of the trolley system." In response to questions raised, Mr. King stated that the offer as made for a total of $100,000 includes $50,000 guaranteed by Bureau members. The members would provide the advertising and /or a combination of advertising and charter service. With respect to a feasibility study of the trolley system, he stated he was not sure how long the study would take, but they are hopeful to have the system in operation by May, 1987. Council Member Plummer, in reference to the trolley, stated it was her understanding that this was an issue the Off- Street Parking Committee was going Volume 41 - Page 70 Finance/ Cnf /Vistrs Bureau • • CITY OF NEWPORT BEACH COUNCIL MEMBERS J�\ February 9, 1987 MINUTES to move ahead on, inasmuch as it affects all of Newport Beach. She stated she felt the trolley has been "studied to death," and should not be studied again, or the trolley will not be in operation by this Summer. She stated she felt that the proper course of action would be for the Council to direct the Off- Street Parking Committee to review this issue, and report back its recommendation at the earliest possible date. Council Member Turner stated that the trolley system which was terminated January 31, 1987, was not working and costing the City a considerable amount. Therefore, he feels the Council should "back off" and take a very thorough look at the "need" for a trolley system; determine just how effective it can and should be, and that the City possibly experiment at a lower cost. He feels this can be done on a pilot program, particularly on the Peninsula. He stated he was reluctant to purchase a trolley first, and then hope the system worked. Mayor Pro Tem. Hart indicated she felt the Council should only consider the 1% visitor's service fee at this time, and not the matter of the trolley. Mr. King addressed the Council again and stated that the additional language they are requesting be inserted in the agreement, requires the Bureau to report biannually regarding the economics and ridership of the trolley, which would include an opportunity for them to look at route proposals in addition to the concept of full -time service vs. charter service, etc. The Bureau feels they will be generating a great deal of information that has not been generated in the past which will serve as guidance for the Council to manage the trolley. Barbara Carver, 4510 Park Newport, Government Relations Coordinator for Park Newport, addressed the Council in support of a trolley system. She stated that approximately 2,200 persons reside at Park Newport, many of whom use the trolley two or three times a week, or on a daily basis as a result of a survey taken within Park Newport. She stated that Park Newport is a member of the Conference and Visitors Bureau and spent $4,800 to place an ad on the trolley. Volume 41 - Page 71 Finance/ Cnf /Vistrs Bureau • is • CITY OF NEWPORT BEACH COUNCIL MEMBERS :ALLY February 9, 1987 They have also budgeted an approximate amount in this year's budget for a similar ad, should there be another trolley system. The following persons addressed the Council regarding the the proposed 1% visitor's service fee: In favor: MINUTES Kevin Consey, Director, Newport Harbor Art Museum Bjorn Sedleniek, owner of POSH Mena Store, Fashion Island Werner Escher, ex- member of the Conference and Visitors Bureau, 205 40th Street In opposition: Lars DeJounge, 208 Marigold Avenue Mr. King, in his closing remarks, stated that the City has used businesses to help pay taxes, to fund road improvements, etc., and therefore, businesses have benefited from those decisions over the years. The City has provided the community with many fine restaurants, hotels, world class museum, etc., which brings people to Newport Beach on an annual basis. The City is totally surrounded by visiting serving uses. The Bureau is not asking for more hotel rooms and they are not asking for a handout from the City. The Bureau is willing to provide dollars out of their own pockets, collected by their own industries, for which the City should reap some benefit as a result of increased sales. Council Member Strauss stated that he viewed the last Council meeting on television when this issue was discussed and has also listened to the tape recording of the same meeting. He stated he was opposed to the proposal and feels very strongly that this is a bad idea for the City for two principal reasons. First, it violates the free enterprise stand, that as far as he knows, the City has always taken by acting as a collection agency for the hotel industry. He feels other industries will now have the right to expect the same treatment if their times "get tough,1° and he feels the Council will have crossed a line that the City should not have crossed if the Volume 41 - Page 72 Finance/ Cnf /Vistrs Bureau COUNCIL MEMBERS is • • CITY OF NEWPORT BEACH MINUTES February 9, 1987 subject ordinance is adopted. Secondly, Finance/ and as equally important, he feels it is Cnf /Vistrs a bad idea because it further changes Bureau the character of the City and makes it more of a tourist town. Most people don't want to see Newport Beach become a Miami Beach, or a Honolulu and when the hotels were built in this City everyone kept saying, "don't worry about that, it will never happen," yet somehow the City is going to undertake a program of nationwide advertising for tourists. He does not feel this is in the best interest or character of the City. Council Member Strauss continued further by stating that the proponents basically are saying that the City would gain by an increase in the hotel occupancy tax, but is that a good reason to change the character of the City, or to violate our firm stand on free enterprise? He does not think it is. He reminded the Council of the defeat of Measure A on November 25, 1986 which, according to the experts, would have made the City $1,000,000 per year, but instead the voters turned it down by convincing the majority that money isn't everything to the answers of our City. He urged the Council to vote down the subject proposal, but stated however, if it is approved, he would suggest the contract be amended to provide for a termination date after a two -year period. This does not mean the contract would be terminated, it only means that negotiations would take place to either renew the subject document, or write a new contract. Council Member Maurer stated he is always surprised when he hears people say that the City should not be involved with businesses. We are already Involved in businesses in his opinion. Also, there is a difference between a visitor who comes to the City and pays his way and the visitor we refer to as our "beach- goer." He stated he would be opposed to the proposal if the Bureau were to promote the "beach- goer" type of visitor who uses the beach for the day and then returns home to another city. He feels there is a partnership between the City, the residents and the businesses, and he would be opposed to terminating the contract at the end of a two -year period, as proposed by Council Member Strauss. Volume 41 - Page 73 • Motion • COUNCIL MEMBERS 'A X CITY OF NEWPORT BEACH MINUTES February 9, 1987 INDEX Council Member Sansone stated that he Finance/ was opposed to the proposal and has been Cnf /Vistrs from its inception. He does not believe Bureau it is necessary for the City to get THE CITY OF NEWPORT BEACH ADDING involved with the Bureau and act as a SECTION 3.28 TO THE NEWPORT BEACH "money exchange outfit." He feels the MUNICIPAL CODE, ESTABLISHING A hotel industry should collect the fees VISITORS' SERVICE FEE; and themselves and disburse the funds authorize the Mayor and City Clerk without the City becoming involved. He to execute agreement between City stated he does not want to see the City and Newport Beach Convention and act as a "money laundry source." He Visitors Bureau; and to add a stated he has looked into the Section 2.D to the agreement to possibility of anti -trust as referred to read as follows: during the last Council meeting, but feels that is not possible. He reiterated that he was not opposed to the concept, but was strongly opposed to the City getting involved. Council Member Turner stated that he, too, is concerned with the possibility of mixing between private enterprise and the City; however, in this particular case, he does not feel the City is getting involved in "business," as he sees it. He stated that the Council is looking at a situation that provides the City with approximately one -half million dollars per year. He stated he will support the proposal, as he feels there are controls contained in the agreement to make sure that if the program goes awry the City can step in and terminate the contract. Council Member Turner stated that he also had some suggestions to "tighten" the agreement further, and therefore, moved to adopt proposed ORDINANCE NO. Ord 86 -5 86 -5, being, Visitor's Service Fee AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADDING SECTION 3.28 TO THE NEWPORT BEACH MUNICIPAL CODE, ESTABLISHING A VISITORS' SERVICE FEE; and authorize the Mayor and City Clerk to execute agreement between City C -2638 and Newport Beach Convention and (38) Visitors Bureau; and to add a Section 2.D to the agreement to read as follows: "On or before May 1, 1987, the Bureau will prepare a study designed to analyze the need for a trolley system to serve the City of Newport Beach. Although City desires to give Bureau considerable flexibility in preparing said study, it is the intent of the City Volume 4I - Page 74 COUNCIL MEMBERS 'A ti 0 Ayes Noes • Motion All Ayes CITY OF NEWPORT BEACH X x x x x x x X MINUTES February 9, 1987 to require that the study address Visitor's need, a pilot program if such a Service Fee program is warranted, trolley sizes, routes, start up dates, schedules, advertising programs, management and budgets. It is further intended that the Bureau will be responsible for providing a minimum of $100,000 per annum from direct contribution and advertising revenues, and that the City financial participation will be commensurate with services provided as determined by City." It was further moved that the following paragraph be added to Section 5: "Said report shall include, but not be limited to, a complete breakdown on the expenditure of funds, a comparison of room occupancy rates for the prior six months, as compared to other comparable periods, increased tax revenues which can be traced directly or indirectly to the promotion program and an analysis of costs or problems resulting from increased visitations as they relate to police, fire and other services provided by the City." Mayor Pro Term Hart asked Council Member Turner if it was his intention, in changing a portion of the agreement relative to the trolley, that the City Council would still have the option as to whether a trolley system would actually go into operation, to which Council Member Turner replied in the affirmative. Mayor Pro Tem Hart stated that she will oppose the motion, and that she made her comments in this regard at the last Council meeting. She complimented the Bureau on their "dynamic" Board of Directors and stated she is sure they will do very well. She stated that her "no" vote is reflective only of the City's participation in this proposal, and not against the Bureau itself. The motion was voted on and carried. 2. BICYCLE TRAILS CITIZENS ADVISORY COMMITTEE: Motion was made to confirm (District 1) Council Member Strauss's reappointment Volume 41 - Page 75 COUNCIL MEMBERS M�n All Ayes Motion All Ayes Motion All Ayes Motion All Ayes E x x X X CITY OF NEWPORT BEACH MINUTES February 9, 1987 of Frances Farr, and appointment of Marilyn Hendrickson. 3. ENVIRONMENTAL QUALITY AFFAIRS CITIZENS ADVISORY COMMITTEE: Motion was made to confirm (District 1) Council Member Strauss's appointments of Bobby Lovell. and Paul Wickman. 4. COUNCIL AD HOC AVIATION COMMITTEE: Motion was made to refer the vacancy for Alternate to Rep /Homeowners Association, deferred from the December 8, 1986, City Council meeting [as a result of City Council reorganization], to the Ad Hoc Aviation Committee. J. CURRENT BUSINESS: 1. NOMINEES FOR APPOINTMENT TO ARTS COMMISSION VACANCY: Motion was made to confirm the following Appointments Committee nominations of Sara Blatterman, and Don McKinney for appointment on February 23, 1987, to fill the unexpired term of Ervin "Bud" Pashley ending June 30, 1987. 2. NOMINEES FOR APPOINTMENT TO THE BUILDING CODE BOARD OF APPEALS VACANCY: Motion was made to confirm the following Appointments Committee nominations of George Crall, and Robert Fish, Jr., for appointment on February 23, 1987, to fill the vacancy on the Building Code Board of Appeals, as a result of the resignation of S. E. Briggs. Meeting adjourned at 9:20 p.m. ty The agenda for this meeting was posted on Thursday, February 5, 1987, at 3:00 p.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Volume 41 - Page 76 EQA /CAC Ad Hoc Aviation Cmte Arts Cmsn Bldg Code Bd Apels