Loading...
HomeMy WebLinkAbout09-08-1997 - Special MeetingL CITY OF NEWPORT BEACH City Council Minutes Special Meeting September 8, 1997 - 3:00 p.m. ROLL CALL Present: O'Neil (arrived at 3:45 p.m., Thomson, Hedges, Glover, Noyes, Mayor Debay Absent: Edwards Motion by Council Member Thomson to change the order of the agenda. Without objection, the motion carried by acclamation. 2. PRESENTATION BY KIM BARONE, SOUTHERN CALIFORNIA EDISON, REGARDING DEREGULATION. Kim Barone, Region Manager, Southern California Edison, reported that last year AB1890 was signed into legislation by Governor Wilson and will go into effect on January 1, 1998. This bill puts the electric restructuring format into place and is based on three principles: equity, opportunity and cost recovery. She explained the three phases of electric power: generation, transmission and distribution and noted that right now the only area that will be open to competition is the generation portion. She explained the reasons for restructuring and noted the need to lower the costs, to provide customers choice, to integrate competition into the market place and to continue with reliable service. In the new market place the generation will be competitive; the power exchange, independent system operator and transmission will be under federal regulation; and the distribution will continue to be state regulated. She explained the five new power purchase options: 1) power exchange; 2) direct access; 3) self - generation; 4) aggregation; and 5) municipalization. Sherry Carroll, Newport Beach Customer Solutions Representative, explained the electric rate components. Kim Barone explained that one of the most important aspects of A131890 was a mandated 10% rate reduction for all residences and small commercial. Once the Competition Transition Charge (CTC) is removed in four years there will be another 10% rate reduction. Edison will not only offer a 10% rate reduction, but will offer a 10% bill reduction. She said that Edison is in the process of selling off ten of their generation plants, including the one at Huntington Beach. She further explained that January 1 is the beginning of deregulation and if the customer decides to do nothing and wait, Edison will ® continue to be the provider and will continue service. This will not preclude the customer from making another change or decision after January 1. She said their core business will be transmission and distribution, however they Volume 51 - Page 407 INDEX No report City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 will continue to act as an energy advisor, will work with economic development and investment in the community, and will work with staff on energy management programs. Ms. Barone reported that Edison will continue to operate San Onofre, their hydro facilities in the High Sierras, as well as a small coal plant in New Mexico, so they will continue to have some generating capabilities. Edison is required to buy out of the power exchange. All of the investor owned utilities will sell into that power exchange, as well as other generators, so Edison will actually be buying their power out of that power exchange. She said that the cost of electricity can be monitored on an hourly basis. 1. UPDATE ON CITY COUNCIL'S 1997 -98 PRIORITIES. Employee Relations/Negotiations Administrative Services Director Danner explained that in January the Council set the goal to review alternative methods of employee relations bargaining, such as Interest Based Bargaining, to improve relationships with the various employee associations. He reported that the City has agreements or tentative agreements with all of the associations and therefore are not actively meeting and conferring with any of them at this time. On tonight's agenda there are proposed agreements with the Police Employees Association and the City Employees Association. The Prof -Tech Association has tentatively approved a contract for the period July 1, 1997 through June 30, 1998, The League employees are scheduled to vote on their agreement on September 11, 1997. The Marine said Safety Officers contract expires on December 31, 1997 therefore the meet and confer process for a contract extension will be started in the very near future. The meet and confer process with all of these groups has been ongoing for nearly two years. Mr. Danner explained that in the past the associations started off the meet and confer process by presenting a list of requests to the City, the City reviewed them, went to Council for direction, and then responded to those requests. During the negotiations with the miscellaneous associations the City and the associations sat down and identified issues that affected the City and the associations before any demands or requests were made on either side. Fiscal Forecasting Administrative Services Director Danner reported that it is staffs desire to set up a ten -year fiscal forecast so the City can do a better job of planning for the future. During the 1st and 2nd quarter the methodology was finalized and preliminary revenue, expenditure and fund balances were estimated for ten years. He said it was the goal to incorporate the forecast into the FY1997 -98 budget, but due to time constraints that was not achieved. He reported that now he and the City Manager need to review the estimates and forward them to the Council as soon as possible. City Manager Murphy noted that the assumptions behind the forecasts are critical and now they have to be reviewed in detail. He said the intent is to complete this particular goal this fiscal year. Volume 51 - Page 408 INDEX City Council Goals (33) O City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 Council Member Glover said that even though additional revenue is currently coming in she is concerned about how, the funds are being spent. She said she believes this is a good time to start building up the reserves. City Manager Murphy explained that Mr. Danner has created a formula that is easy to change so as circumstances change the forecasts can easily be modified to see what the long -range implication is as opposed to just the short range. In response to Council Member Glover's concerns, Mr. Murphy explained that the vast majority of additional revenue this fiscal year went into reserves. The General Fund Stabilization Reserve target is 15% and currently the reserve is at about 8.8 %. The other key reserve is the insurance reserve and even though $911,000 was transferred into that reserve this fiscal year staff would like to have $5 million in reserves in the three areas (compensated absences, workers comp, and general liability). The $911,000 that was placed into reserves was to overcome the negative balance that was created from over - expending in those three areas. He noted that it is a real challenge to maintain quality services and build. reserves while not raising fees or taxes. Council Member Hedges pointed out that the General Fund reserve level ® was raised from 10% to 15% in light of the Orange County bankruptcy. He said the reserve policy lacks the methodology by which it is set and it is important for the elected officials to go through that exercise. He said that to the extent that the City allocates reserves in excess of that figure it becomes a hidden tax without any public benefit. He said the same pertains to insurance reserves. He said he believes that as :much time should be spent on the expenditure side of the ledger as is spent on the revenue side and the only time that is done is when annexation is being; considered. Council Member Glover concurred with Council Member Hedges' comments and stated that she believes this year the Council had the opportunity to look at the other side of the ledger. Crime Prevention Police Chief McDonell explained that in January when the Council adopted Crime Prevention as a goal the Police Department was concurrently looking for grant funding at the national level to establish a full- service Crime Prevention program. On April 7, 1997 the Department promoted the Crime Prevention Specialist Kathy Lowe. The immediate goals of the program were to prevent crime, to disseminate correct and realistic information to the community about criminal activity and crime prevention, and to generally enhance the perception of security in the City. Over the past five months the Neighborhood Watch program has been reorganized; efforts to revamp the Business Watch program have been initiated; formal home and business ® security inspections are being conducted; staff is in the process of establishing new and better relationships with the various community associations; a program was instituted to distribute Crime Alert bulletins Volume 51 - Page 409 City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 1 1 ` ® (approximately 17 bulletins have been distributed over the past five months); and the materials for crime prevention that are distributed throughout the community are being updated and expanded. Mayor Debay requested that Crime Prevention Specialist Lowe participate in the Public Safety meetings, in particular to work with the disaster preparedness issues. Ms. Lowe addressed the disaster preparedness issue, as well as explained how the Crime Alert program is handled and how residents and businesses are notified. Council Member Hedges inquired about the status of contacting the National Rifle Association to work with them in their Eddie Eagle program which teaches the safe use and storage of firearms in the home and the status of implementing a retired senior volunteer program. He also questioned the need for the helicopters (ABLE) to set up a 300 foot orbit during medical aid calls, especially at the beach. Airport City Attorney Burnham gave a brief overview of the airport issue over the past four years. He reported that the El Toro Marine Air Corp station was ® placed on the base closure list in 1993, the voters approved Measure A in 1994 which designated El Toro as a commercial airport, in 1995 the Board of Supervisors was designated as the Local Redevelopment Authority (LRA) by the Department of Defense which gives them the responsibility for preparing a Community Reuse Plan (CRP) for the base. In 1996 the Board of Supervisors approved a CRP that called for a commercial aviation reuse of El Toro, approved EIR 563 and indicated a preference for a two airport system and directed during the separation of the Airport Master Plan that the consultant determine if a two airport system (John Wayne Airport and El Toro) acting in tandem would be a feasible way of conducting the system. The Board also directed staff to establish a parallel planning process to develop a non - aviation plan to be implemented if there was a fatal flaw in the Commercial Reuse Plan. In 1995, after a legal challenge was filed by airport opponents to Measure A, the City of Newport Beach, as a member of the Orange County Regional Airport Authority (OCCRA) intervened in that lawsuit. In the early part of 1997, the airport opponents filed a legal challenge against EIR 563. The City has actively participated as interveners in both of those lawsuits. The Measure A lawsuit was resolved in the City's favor in 1996, and hopefully the lawsuit challenging EIR 563 will have similar results. That case is scheduled for trial in mid - October of 1997. The aviation consultant hired by the Board of Supervisors has been directed, as a first step in that process, to determine the feasibility of the two airport system, however the City has not seen any documents prepared by the consultant. The City will be actively involved in reviewing all of the consultants work and their determination about whether John Wayne ® Airport and El Toro can operate as a two airport system. Assistant to the City Manager Ducey reported that one of the things the City Volume 51 - Page 410 City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 INDEX ® has tried to focus on since December are ways to better organize the pro - airport coalitions so their voice will be heard throughout this process. That is being done by trying to form a coalition of public agencies, private businesses, and grass -roots support. She stated that she has been appointed as the Executive Director of the Orange County Regional Airport Authority. Currently there are seven active cities involved in the group and a goal has been set to add at least eight more cities before the end of 1997. There are consultants working closely with the Orange County Business Council, as well as working at a grass roots level with local Chambers of Commerce and other business associations in order to identify the strong pro- airport supporters. City Attorney Burnham reported that two trips have been made to Washington to meet with congressional representatives, representatives of the Federal Aviation administration, the Office of Economic Adjustment, and anyone interested in or who will play a role in the ultimate decision as to the reuse of E1 Toro. The City also has lobbyists working both in Washington and locally in an effort to advise and educate political leaders as to the benefits of an airport at El Toro. Ms. Ducey explained that the City's consultant is working with the Airport Working Group (AWG) and using their resources and coordinating the City's efforts with theirs. She said they have been a real active player in the ® process. Mr. Burnham said that the City has a real strong goal to demonstrate, especially to the Board of Supervisors, that this isn't a Newport Beach issue. Measure A passed in 23 of 30 cities, and Measure S was defeated in the same cities by a large margin, so there is a lot of pro - airport sentiment other than in Newport Beach. Economic Development Assistant City Manager Wood said that one of the most important aspects of this goal for the City Council was to achieve the full potential of Newport Center. She reported on the various activities that have been undertaken during the past couple of quarters and that will be implemented: the Balboa Peninsula Revitalization Programs both on the public outreach side and the feasibility study side; work on Old Newport Boulevard, the airport area, Mariner's Mile, and in Corona del Mar with the formation of the new Business Improvement District. Also completed were the draft revisions to the Circulation Element and the Traffic Phasing Ordinance which were forwarded to the Planning Commission for public: hearings. She said staff is also trying to establish some kind of network with the commercial and industrial real estate brokers in order to share :information and be able to provide an inventory of spaces or sites available. She said another area that is being worked on is visiting the existing businesses for business retention purposes. The other major thing that staff is working on with the Economic ® Development Committee is the preparation of a :strategic Plan for Economic Development. She pointed out that the plan states that in order to continue to provide quality municipal services there is a need to find additional Volume 51 - Page 411 City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 IIN 0 sources of revenue, which can be either from making the existing businesses more productive, attracting new businesses or increasing the revenue derived from the people already here. In preparing this strategy the Committee appointed three subcommittees to look at revenue needs, revenue opportunities, and at strengths and weaknesses. After they met they reported to the full committee who set three areas of focus for the economic development strategy: 1) to continue in the area of hospitality; 2) in the business to business sector; and 3) to pursue the high end retail area of automobiles and boats. The next step for the Economic Development Committee is to have three new subcommittees, one for each of the focus areas, to look into what should be done to improve each of the three focus areas and to set up some action plans for the staff and the committee to follow for the next year or so. Council Member O'Neil reported that the City Council appointed the Newport Center Economic Opportunities Committee (NCEO) in January of 1997 and at that time established some goals. Those goals being to encourage The Irvine Company to develop a long -range vision for the future of Newport Center/Fashion Island in order to maintain and enhance its success in the market place, as well as acknowledge the significance of Newport Center as an ongoing source of revenue to support and maintain high quality municipal services. On May 12, 1997 the NCEO Committee presented to City Council a conceptual development plan for Newport ® Center, which included retail, residential, office, .affordable housing, a senior center, a child daycare center, and a civic plaza element. At that time staff and the NCEO Committee were directed to hold meetings with The Irvine Company and the public to look further into this development plan and to review the selection, if necessary, of consultants to do the technical studies on the environmental impacts, fiscal analysis, traffic analysis, etc. The NCEO has met on several occasions since the May 12, 1997 meeting and the City and The Irvine Company have agreed to work jointly on a long -term planning process for Newport Center with a goal of establishing a planning process leading up to a master plan of development. He said they recognized that there may be projects within the overall planning process that may be broken out of the overall plan in order to move forward in the best interests of the City and The Irvine Company. With that in mind The Irvine Company made a request that the City consider breaking out an expansion project for the Four Seasons Hotel and to move forward. on the affordable senior housing project. In both of these cases the NCEO Committee is recommending to the Council that it would be appropriate to take those separately and move forward on those projects with an expedited scheduling. The senior affordable housing project under the conceptual plan has been located north of the Central Library in an area of about 12 acres, which is commonly referred to as Newport Village. The Ford Motor Land project and The Irvine Company's project set forth in the CI:OSA agreement requires a certain number of affordable houses to be built in order to satisfy the state law. A committee was formed by the City Council to look at the various locations for a possible site for a senior affordable project. It was determined ® that the Newport Village site would be appropriate because of its proximity to medical buildings, public transportation, and shopping. The Four Seasons Hotel expansion will involve a minimal environmental impact and provide Volume 51 - Page 412 E City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 II 1 significant fiscal benefits to the City. On behalf of the Committee, he said he is requesting that the City Council take three actions: 1) to approve the long- term planning process for Newport Center and to authorize the Mayor to make a City commitment to participate; 2) approve Newport Village as the intended site for the senior affordable housing project subject to all of the required planning approvals and that the terms of the agreement with The Irvine Company including replacement open space be discussed in Closed Session as part of negotiations on the project; and 3) to designate the NCEO Committee as the committee to work with the staff to negotiate with The Irvine Company on the terms of the senior affordable housing project. Phil Sansone, Director of Oasis Center, reported that the Oasis is 100% in support of the senior affordable housing project and the proposed location. As chairman of the Corona del Mar Residents Association, he reported that the Board has been discussing this and even though they have not taken a formal vote, in all of the discussions only one member out of fourteen has indicated any objection. From the Oasis point of view he said they want to expedite this. He also pointed out that not until the signature stage were there 12 acres in CIOSA. Pertaining to economic development, he added that the City should not forget about wholesale businesses. In response to Mayor Debay's question about whether action can be taken at this time, City Attorney Burnham said that he believes action can be taken because the nature of Council Member O'Neil's motion is assumed by the ® quarterly report that Council received. Motion by Council Member O'Neil to: 1) approve the long -term planning process for Newport Center to lead up to a master plan of development of the remaining developable area in Newport Center and Fashion Island; 2) approve Newport Village as the site for the senior affordable housing project; and 3) that NCEO be designated as the City's negotiator to work with staff and The Irvine Company to negotiate and consummate the deal with The Irvine Company on the affordable senior project. Council Member Glover requested that the three points of the motion be voted on as separate items. She voiced concern with not receiving adequate information from staff concerning the affordable housing and with discussing this issue in Closed Session. She said she would like to find out who will build this, who will manage it, how much property will it take, what are the view impacts, does the City want to go into the .housing business, is this to provide affordable housing for The Irvine Company because of the houses they have built in the City, and why doesn't this go downcoast. She noted that since MacArthur Boulevard has been lowered the view going into Corona del Mar has been lost. She said that in the future when there are projects that the City is involved in, the view impacts should be looked at and the City should be as accountable as private businesses are in this respect. She said she isn't sure the City wants to get into senior housing and noted that she is very reticent to give up the view that will be lost if houses ® are built on that site. Assistant City Manager Wood explained that the only thing the Council can Volume 51 - Page 413 City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 n0 1 ` ® do at this point is approve it in concept as the site. If it is to be developed as multi- family housing the General Plan, Local Coastal Plan and the PC text will need to be amended, so there will be hearings at both the Planning Commission and the City Council level. She explained that a potential developer would not be comfortable with proceeding with those actions unless they received some indication from the Council that there is support for the site. Council Member O'Neil explained his motion regarding the site for the senior affordable housing and also explained that a committee of the City Council spent over 1 -1/2 years looking at a number of other sites, although they did not look downcoast, and determined that Newport Village was the most appropriate site. He said he doesn't know whether it will interfere substantially with views coming down MacArthur Blvd., although he knows there is a protected view plane along there that will have to be honored. He explained that the negotiation terms will be discussed in Closed Session because the negotiations will be rather sophisticated and complicated since the property was included in CIOSA as open space, even though the CIOSA agreement expressly provides that affordable senior housing can be built on this property. He said he doesn't believe that this eliminates the need for The Irvine Company to provide for some substitute or replacement land of equal value or equal significance someplace else in the City. There is an clause in the CIOSA contract that The Irvine Company dedicate that land to ® the City, and in fact it should have occurred by now and needs to be addressed. The City also needs to address whether or not the City should have an equity ownership interest in the project. He said that it is in the best interest of the City to make the best deal possible and if there is an equity position that should be taken in this project that will result in revenue and benefits the taxpayers of the City, the City should go after it and get it. He said the Council cannot in an open public meeting discuss what is the best deal for the City, and it is an appropriate topic for discussion in closed session pursuant to the Brown Act. Mayor Debay reported that a facsimile was received from former Council Member Jean Watt who sat on the affordable Housing committee and she states that if the City uses the open space designated in CIOSA for affordable housing then the City should receive equivalent open space in return. Council Member Glover questioned why it would be inappropriate to negotiate for the open space prior to approving Newport Village as the site for senior affordable housing. She voiced concerns with the Council taking City land that was designated for open space and negotiating to put housing on it, as well as the lack of information on this issue. She stressed that it is important to get equivalent open space for that and she doesn't want to impede or impair the view anymore coming down MacArthur. City Manager Murphy explained that there are a number of ways to ® negotiate and one of the suggestions is that this issue be part of those discussions. The Council needs to indicate that this is a site that they are willing to conceptually consider before the terms of the transaction are Volume 51 - Page 414 City of Newport Beach City Council Minutes - Special Meeting September S, 1997 101 ` ® negotiated. Part of the terms of that transaction would be the discussion with The Irvine Company on the open space issue. He said the Council can take the action to conceptually designate the site, but the negotiators then have to be instructed as to under what terms the City would accept the package. He reiterated that ultimately everything has to come back through the public process. Mr. Murphy explained the history of Ford Motor Land, The Irvine Company, the CIOSA agreements, the housing requirements, and the committee which was formed to accept proposals. He said now staff is back asking Council to approve the use of the site. He further explained some of the issues that will be dealt with in Closed Session. He noted that under the City's Housing Element the City is required to provide a mix of housing of all types to satisfy the broad housing needs of the community. Council Member Glover noted that there may be sump pump issues involved in order to maintain the site plane, the City already provides and pays for transportation for seniors so the location isn't relevant, and even though the City has to provide senior housing, the City needs to be prudent about how much of the responsibility it assumes. Council Member Noyes, as a committee member, indicated that the committee went through all of the issues and concerns raised by Council Member Glover, and reiterated that this is the best place for the senior ® housing. Council Member Hedges reiterated that the replacement of the open space elsewhere is not precluded and should be pursued to the maximum extent possible. He said that it makes sense to put senior housing in a location that will work well for all involved, therefore he supports having the process go forward. Claudia Owen said she concurs with many of Council Member Glover's remarks and noted that she thinks the site view plane has to do with the view from the homes in Harbor View and not from MacArthur Boulevard. She also pointed out that the seniors in the community are very active, are not cripples, and do not need to be surrounded by all the amenities. Carol Hoffman, The Irvine Company, reiterated that the Ford Motor Land Company, The Irvine Company and the City are all required to build senior affordable housing. She said they have been working with the City committee structure for about two years in an attempt to resolve this and to find a good location to meet the affordable housing requirements shared by everyone. She said they want to proceed in a timely basis. She explained that the action being requested will allow the parties to go forward into a very logical series of negotiations on all of the deal points for the affordable housing, and the way in which the development will occur on the site. It will require a General Plan amendment and a site plan and within that they will ® look at various ways in which this site can address a multitude of City issues. She pointed out that there is a need for some additional parking for the library and this site offers an opportunity for that. She noted that there Volume 51 - Page 415 City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 1T11 . ® will be a non -profit entity involved. Their current proposal also includes a suggestion that they contribute to the shuttle service that the Oasis Senior Center provides. She said they have received over 150 calls from seniors desirous of being on a waiting list for the housing at this location because they recognize the convenience of the location. Motion by Council Member O Neil to approve a long -term planning process for the build -out of Newport Center under a master plan of development with the understanding that as part of the process there will be periodic status reports brought back to the Council. Without objection, the motion carried by acclamation. Motion by Council Member O'Neil to approve Newport Village, the property northerly of the Central Library, as the site for the senior affordable housing project, subject to Council approval of the General Plan, Local Coastal Plan, and PC text amendments. With Council Member Glover dissenting, the motion carried by acclamation. Motion by Council Member O Neil to designate the Newport Center Economic Opportunities Committee as the :negotiator for the senior affordable housing project, with the understanding that the committee will provide periodic status reports to the Council. Without objection, the motion carried by acclamation. ® City Manager Murphy requested feedback from the Council on the proposed Strategic Plan for Economic Development. In response to Council Member Hedges' question about how the success of the program is measured, he indicated that it is very difficult to do. He said the committee has looked at areas to put more emphasis on where they will achieve the most success both for the benefit of the business community as well as the benefit of the City. Council Member Hedges said he feels one of the most important things the City can do is to continue to encourage change in the culture in the middle management and junior employee levels of the organization so that when an applicant comes to the counter with a proposed project that isn't "in the book ", the person will be guided appropriately about the appropriate mechanism to use to get a fair hearing on their proposal. Council Member Noyes said he believes economic development is more a quality of life enhancement and what the Council is doing is trying to make the City better for the residents, even though there is a tourist component included. Philip Bettencourt, Civic Affairs Chairman of the Newport Harbor Chamber of Commerce, said that the Traffic Phasing Ordinance reform program that is now before the Planning Commission is probably one of the longest -lived pieces of unfinished business that is before the City. He said he thinks the City needs to set a specific timetable to get this reform program before the ® City Council for consideration. He said he believes there are needed reforms on a constitutional takings issue which needs to be addressed. Volume 51 - Page 416 City of Newport Beach City Council Minutes - Special Meeting September S, 1997 1 1 ' isMotion by Council Member Hedges to continue the remaining four goals until September 22, 1997. Substitute motion by Council Member Noyes to take a ten - minute recess. Without objection, the motion carried by acclamation. The Council took a brief recess at 5:15 p.m. and reconvened at 5:22 p.m. with all members present except Mayor Pro Tem Edwards. Newport Coast Annexation City Manager Murphy stated that staff is asking the Council to act on the following: 1) to authorize staff to prepare agreements with the County of Orange and the Orange County Fire Authority regarding service delivery responsibility and property tax distribution; 2) to confirm that the City will not assume any financial responsibilities for the Newport Coast public financing districts upon annexation; 3) to approve the City's acceptance of the Offer of Dedication for the Newport Coast public parks; 4) to authorize staff to execute a tolling agreement with the hvine Ranch Water District (IRWD) regarding water and wastewater services; 5) to authorize staff to negotiate a Pre - annexation Agreement with The Irvine Company (TIC); and 6) to approve staffs continued work towards acceptance of Planning Area ® 26(A) Bonita Village from the City of Irvine, contingent upon changes in school district boundaries. Referring to a map he indicated that in the City's history since 1906, there have been 91 annexation actions. In response to Council Member O'Neil, Mr. Murphy explained that if the Council approves item 1 and the City can get written binding agreements, staff would come back to the Council with those agreements and at that time would request authorization to proceed with the application to lAFCO. He also explained that under item #3, the median parkways are not included, and the City has built money into the forecasts for maintenance of the current park, which is currently open to just private homeowners, plus funds for the development of future parks. Mr. Murphy indicated that a seventh recommendation to form a committee to look at redistricting the Councihnanic districts should have been included in the report. Council Member O Neil suggested that there be a public outreach program to share information with the community in regard to the numbers being generated, the municipal services to be provided, the size of the various Councilmanic districts, the size of government and those kinds of impacts. He said he is hearing inaccurate information about what the impacts of the Newport Coast annexation could have on the quality of life, especially in Corona del Mar. He questioned whether staff needs authority to enter into a Pre - Annexation Agreement with The Irvine Company for Planning Area 26(A). ® Motion by Council Member Glover to authorize staff to prepare written agreements with the County of Orange and the Orange County Fire Authority regarding service delivery responsibilities and property tax Volume 51 - Page 417 City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 I 1 1 ® distribution for the Newport Coast. She said she thinks the problem the City will see revealed is all the different assessments that people downcoast make (association, Mello -Roos, etc.) and the residents in that area should be advised that it is not the City's intent to assume 'those responsibilities unless voted on by the City Council. Council Member O'Neil said it is not his intent nor has staff been instructed to try to negotiate any agreement with the other taxing entities that have developed the roads and other public infrastructure system, and the City is not going to assume any of that responsibility if the downcoast is annexed and the residents will have to continue to accept that burden. The motion was amended by Council Member Glover to include confirmation that the City will not assume any financial responsibilities for the Newport Coast public financing districts upon annexation. Carol Hoffman, The Irvine Company, stated that they are happy to work with the City Council to find a way to proceed with annexation of the Newport Coast in a very comprehensive manner, but in a way that both protects their entitlement and preserves the integrity of the plan that is in their best interest as the property owner, as well as the City. With regard to the responsibility for the financing districts, Elie said they have clearly stated in all of their disclosure documents to all of their purchasers and all ® the members of their community in Newport Coast that the responsibility for getting these improvements made had to be included in the assessment districts. Everyone who has purchased their property has agreed to make those payments through the assessment districts. In response to City Manager Murphy's question about timing, Ms. Hoffman explained that The Irvine Company is going to look for a creative mechanism in order to make this happen because there are some technical issues that affect their ability to have all of the annexation come into the City on an immediate basis. She said that they want the annexation to happen in its entirety because it functions as a planned community, however, the ability to bring it in all at once will be affected by the fact that it has a certified Local Coastal Program (LCP) that is in the County area and the City of Newport Beach does not have its own certified Local Coastal Program. She said they are hoping to find a way with LAFCO and with the negotiation of the service delivery responsibilities and property tax distribution to reach an agreement that the entire area will come to Newport Beach and that the actual triggering mechanisms of when the various pieces come into the City will be based upon the provision of development of those various segments. She said they would end up with a total agreement on what would come to the City, but it would come in a way that would not jeopardize the LCP for them or the City. Council Member Hedges pointed out that what Ms. Hoffman means is that The Irvine Company wants to continue to build -out according to County ® standards and not have to come under Newport Beach's TPO or zoning requirements. He questioned whether any discussions have been held about Newport Coast forming its own municipality. Volume 51 - Page 418 City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 n � ® Ms. Hoffman said that The Irvine Company has never envisioned it being its own municipality, and it has always been in the sphere of influence of Newport Beach, and its ultimate location should be in the City of Newport Beach. She said that if there were no discussions about annexation into the City the development would proceed on a natural timeframe that is dictated mainly by market conditions and the development would exist on Newport's boundary as an unincorporated planned community. She said they don't see a need to make a change in that entitlement and if the City wants to annex the area then they feel the LCP should be brought in as approved. She said she believes the difference in the County and City standards are very minor and that this is a very good high quality development, it is consistent with the Master Plan of Arterial Highways, the mitigation measures are being met, the water quality monitoring is underway and the standards are consistently being met. She reiterated that a creative approach will need to be taken about the way in which the actual timing occurs, however what they want is a comprehensive agreement that the whole area would come into the City, however it would come into the City in phases. Due to the complexity of the entitlement and because there is not currently an LCP certified in Newport Beach, they are recommending bringing it in phases to avoid having to go back to the Coastal Commission and through entitlement processing. She explained that the Coastal Commission does not have an automatic policy for transferring a certified LCP from a County to a City that does not have a certified LCP. She noted that there are hotel sites in the ® downcoast that are not developed yet and they fully intend to proceed with that development which will bring bed tax into the City, but feel that the processing of it should continue at the County level. She explained that The Irvine Company is trying to cooperate with the City. Mr. Murphy explained that each of the taxing authorities will act before the Council is asked to act, so the Council will know that the position and current status of the negotiations are the best that the City can expect to get and the best that the County has ever done in the past. He said the County Fire Authority has never negotiated with a city to give up service and they are passing through 100% of the taxes. There is an understanding with Bonita Village that that area will come to the City and the City will get 100% of the taxes. There is an obligation for The Irvine Company to forward to the Orange County Fire Authority a development fee for the Bonita Village area. He noted that The Irvine Company is supporting the annexation and are willing to assist. He said the question about "all" or "some" is a key question and some commitment is needed about the intent to move forward on the entire area as a package. He said staff needs the direction to negotiate a pre - annexation agreement with The Irvine Company in order to get into these issues in order to bring the facts back to Council. Council Member Hedges voiced concerns about approving the staffs recommendations with the absence of more information and then on a regular agenda having the Council presented with agreements that have ® been negotiated with the taxing authorities and with The Irvine Company as a fate accompli. He said unless there is something established in the process leading up to that point, there will be no further input. Volume 51 - Page 419 \_I City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 0 10 1 ` Council Member Thomson voiced concern about the "piecemeal" annexation process and questioned what the mechanism would be that would trigger a piece of property or a parcel to become a part of Newport Beach. Ms. Hoffman clarified that The Irvine Company is not initiating this annexation and this is not their objective. She said they planned Newport Coast as a planned community unto itself, independent of Newport Beach that would function on its own, that had all its own financing mechanisms, and that would existing peacefully, but separately, with Newport Beach. She said they have been trying to respond to what they have heard and been asked for by certain Council members or by staff. She said they are trying to be creatively cooperative and they also want the answers to the questions asked and they are trying to find a way to make that work for the City since it works fine for them the way it is. She said they don't know the mechanism yet, however they have asked the attorneys involved and the consultant that works with LAFCO to help them come up with a mechanism that would do what she has tried to describe. She said that it could be as simple a trigger as when the Certificates of Occupancy is issued. Council Member O'Neil said there is a need to have all of the information to make the decisions and questioned whether the figures are public information so they can be discussed with the constituencies. ® Mr. Murphy explained that staff has reached oral agreement with the taxing entities on the splits and once they are approved in writing by those entities the numbers can be shared, however to do so any earlier would jeopardize the process. He stated that the timing depends on the timetable on the other side of the equation and how quickly they can advance those discussions from discussions onto paper. He indicated that it will probably take 60 -90 days. Council Member Hedges suggested that staff find out from the County what services they plan to provide and how much the services will cost and then perhaps the City can get 100% of the tax split and then pay them for the services they provide to the City of Newport Beach. Council Member Glover said she would not support the offer of dedication for the Newport Coast public parks. She indicated that she received the breakdown on the tax from Assistant to the City Manager Ducey and questioned if the City Manager were comfortable providing that information to the full Council. Mr. Murphy indicated that staff distributed a sheet showing the split of the tax rate areas serving the coast in terms of the percentages that are received by the various entities. He explained that these figures are the best the County has done anywhere on a split and noted'. that the County wants to preserve some portion of it for their general health and welfare services. ® Motion by Council Member Hedges to approve staffs continued work towards acceptance of Planning Area 26(A) Bonita Village from the City of Volume 51 - Page 420 City of Newport Beach City Council Minutes - Special Meeting September 8, 1997 Irvine, contingent upon changes in school district boundaries. Without objection, the motion carried by acclamation. Substitute motion by Council Member Hedges to take up the discussion on annexation as the final item of business at the end of the regular meeting for decision as to whether or not it should be discussed then or continued to another date. Without objection, the motion carried by acclamation. Motion by Council Member Hedges to continue the three remaining items to September 22, 1997. Without objection, the motion carried by acclamation. PUBLIC COMMENTS Peter Drummond, 1706 Antigua Way, stated that there :is a growing concern among several organizations that the coalition of El Toro proponents is not as organized to the extent it should be in comparison to the opponents. He said the 3rd quarter goals cannot be over - emphasized and the Council should proceed with a sense of urgency. ADJOURNMENT - 6:20 p.m. to Closed Session xxxxx *: *xxxxxxxxxxxxxxxx : «xxxxx The agenda for the Special Meeting was posted on September 3, 1997 at ® 12:15 p.m. and the Supplemental Agenda for the Special Meeting was posted on September 5, 1997 at 2:30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary �4" � wL' or f Volume 51 - Page 421 INDEX