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HomeMy WebLinkAbout10/25/1999 - Regular Meeting0 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting INDEX CLOSED SESSION- 6:00 p.m. CLOSED SESSION REPORT PRESENTED - None. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Adams, Glover, Ridgeway, Noyes, and Mayor O'Neil Absent: Thomson and Debay (excused) Pledge of Allegiance - Mayor O'Neil. Invocation by Pastor Warren Olson, Mariners Church. Recognition of Edward Karagozian as the recipient of the 1999 Jeffrey Stern Community Preparedness Award. Presentation of the Certificate of Achievement for Excellence in Financial • Reporting for the City's 1997 -98 Comprehensive Annual Financial Report to the City of Newport Beach and an Award of Financial Reporting Achievement from the Government Finance Officers Association (GFOA) of the United States and Canada to Dick Kurth, Deputy Administrative Services Director. Council Member Ridgeway presented Mayor O'Neil with a T -shirt and an award from the Balboa Performing Arts Theater Foundation for his assistance during the 5K run that was held last Saturday. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): • Council Member Ridgeway requested that the Master Plan for Balboa Village be discussed at a future study session. • Mayor O'Neil announced that the Friends of the Library needs used books to resell. The books can be deposited at any library branch and donations are tax deductible. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS • 1. Removed at the request of Council Member Noyes. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Volume 53 - Page 44 J • • City of Newport Beach City Council Minutes October 25, 1999 Clerk to read by title only. ORDINANCES FOR ADOPTION 3. SANTIAGO DRIVE SPEED LIMIT (contd. from 9/13/99). Adopt Ordinance No. 99 -25 amending Chapter 12.24 (Special Speed Zones) of the NBMC to establish a speed limit of 30 mph on Santiago Drive between Irvine Avenue and Tustin Avenue; and direct staff to proceed with the expanded Santiago Drive implementation plan. 4. AMENDMENTS TO THE ZONING CODE (AMENDMENT 892) THAT RELATE TO THE DEFINITION OF TERMS, TERMS AND CROSS - REFERENCES IN THE LAND USE REGULATIONS SCHEDULES, ESTABLISHING WATERFRONT REAR YARD SETBACKS, REGULATIONS ON BAY AND GREENHOUSE WINDOWS, THE PARKING OF VEHICLES IN REQUIRED YARDS, SIGNS IN RESIDENTIAL DISTRICTS, AND THE AUTHORITY OF THE PLANNING DIRECTOR TO APPROVE OFF -SALE ALCOHOLIC BEVERAGE OUTLETS AND MASSAGE ESTABLISHMENTS. Adopt Ordinance No. 99 -26. CONTRACTS AND AGREEMENTS 5. Removed at the request of Council Member Ridgeway. 6. AIRBORNE LAW ENFORCEMENT (ABLE) JOINT POWERS AGREEMENT REVISION (C- 3011). Approve the revised Joint Powers Agreement (JPA) between the Cities of Newport Beach and Costa Mesa continuing the existing ABLE program. 7. Removed at the request of Council Member Glover. 8. GRANT HOWALD AND LINCOLN ATHLETIC CENTER BALLFIELD LIGHTING (C -3283) - COMPLETION AND ACCEPTANCE. 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the bonds 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Code; 4) authorize staff to retain the contractor to change additional lights for Lincoln Athletic Center Field No. 1; and 5) authorize a budget amendment (BA -021) to transfer Park -In -Lieu funds in the amount of $30,000 from Account No. 7021- C5100372 to Account No. 7021- C4120431. 9. JAMBOREE ROAD/EASTBLUFF DRIVE INTERSECTION IMPROVEMENTS - PROFESSIONAL SERVICES AGREEMENT WITH DIAZ - YOURMAN AND ASSOCIATES (GEOTECHNICAL) AND AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH TETRA TECH, INC. (C- 3202). 1) Approve Professional Services Agreement with Diaz - Yourman and Associates Geotechnical Services for geotechnical testing; 2) approve Amendment No. 1 to Professional Services Agreement with Tetra Tech, Inc. for additional design services; and 3) approve a budget amendment (BA -020) appropriating $9,100 to Account No. 7181- C5200421, Jamboree/Eastbluff Improvements from Account No. 7181- C5100070, EIR/Preliminary Plans. Volume 53 - Page 45 RNITO" Ord 99 -25 Santiago Drive Speed Limit (85) Ord 99 -26 Amendment 892 Zoning Code (94) C -3011 Airborne Law Enforcement (ABLE) (38) C -3283 BA -021 Grant Howald and Lincoln Athletic Center Ballfield Lighting (38/40) C -3202 BA -020 Jamboree Road/ Eastbluff Drive Intersection Improvements (38/40) City of Newport Beach City Council Minutes October 25, 1999 INDEX 10. AGREEMENT FOR CONSTRUCTION OF IMPROVEMENTS AT 3619 EP 99 -257 • OCEAN BOULEVARD (ENCROACHMENT PERMIT NO. 99 -257). Encroachment Approve an agreement guaranteeing completion of the public improvements Agreement required with Variance No. 1223 and authorize the Mayor and the City 3619 Ocean Blvd. Clerk to execute the agreement. (65) 11. APPROVAL OF CONSULTANT AGREEMENTS FOR TRAFFIC C -3314 ENGINEERING SERVICES IN CONJUNCTION WITH THE Newport Center NEWPORT CENTER PROJECT. 1) Approve a Professional Services Project Agreement with Austin -Foust Associates, Inc. for updating the traffic model (38) and preparing the traffic study for inclusion in the Newport Center General Plan Update EIR; and 2) approve a Professional Services Agreement with RKJK & Associates, Inc. for project management and traffic engineering services. 12. BALBOA PIER CONCESSION AGREEMENT - RUBY'S C -2326 RESTAURANT GROUP (C- 2326). Continue to the November 8, 1999, City Balboa Pier Council meeting. Concession (38) 13. EXTENSION OF LEASE AGREEMENT WITH AMERICAN LEGION C -1772 POST 291 (C- 1772). Authorize the Mayor to enter into a let Lease Lease Agreement Amendment that extends the current operating lease with the American American Legion Legion Post 291 for the marina and clubhouse at 215 15th Street for one year Post 291 beginning in March 2000. (38) • MISCELLANEOUS ACTIONS 14. PLANNING COMMISSION AGENDA FOR OCTOBER 21, 1999. Planning Receive and file. (68) 15. APPOINTMENTS TO THE HARBOR QUALITY CITIZENS ADVISORY Harbor Quality COMMITTEE. Confirm Council Member Ridgeway's appointment of Nancy Citizens Advisory Gardner (District 1) and Council Member Debay's appointment of Committee Rob Thomas (District 2). (24) 16. APPOINTMENT TO THE ENVIRONMENTAL QUALITY CITIZENS Environmental Quality ADVISORY COMMITTEE. Confirm Council Member Adams' appointment Citizens Advisory of Richard Rivett as the at -large member (District 4). Committee (24) 17. REPEAL OF CITY COUNCIL POLICY L -18. Repeal City Council Policy Policy L -18 L -18, Administrative Procedures for Implementing the Traffic Phasing (69) Ordinance. 18. BUDGET AMENDMENT (BA -018) - LIBRARY SERVICES & BA -018 TECHNOLOGY GRANT AWARD OF $34,666. Approve BA -018 to Library Services & appropriate the library grant to various accounts to support the TeenRead Technology Grant outreach program. (40/50) 19. BUDGET AMENDMENT (BA -019) FOR CORONA DEL MAR BA -019 • REFORESTATION (PHASE III). Approve BA -019 in the amount of $57,000 to fund the City portion of Phase III of the reforestation of 40 City CdM Reforestation (40/44) parkway trees located on the north side of East Coast Highway in Corona del Mar. Volume 53 - Page 46 City of Newport Beach City Council Minutes October 25, 1999 • 20. MCFADDEN PLACE FARMERS MARKET AGREEMENT REVIEW. Receive and file. 21. HUMAN SERVICES GRANTS FOR 1999 -2000. Authorize the distribution of grants totaling $25,000 from fund #010 -20- 0100 -8254 to various Human Services organizations that serve the Newport Beach community. 22. STAFFING ISSUES. Approve conversion of four part -time positions in Administrative Services to full-time status. Motion by Mayor O'Neil to approve the Consent Calendar, except for those items removed (1, 5, and 7), and noting the correction to Item No. 15 and continuation of Item No. 12. The motion carried by the following roll call vote: Ayes: Adams, Glover, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: Thomson, Debay ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE SPECIAL MEETING OF SEPTEMBER 18, 1999, • ADJOURNED REGULAR AND REGULAR MEETING OF SEPTEMBER 27, 1999 AND THE SPECIAL MEETING OF OCTOBER 4, 1999. Council Member Noyes announced that he will be abstaining on the approval of the September 27 minutes because he was absent during those meetings. Motion by Council Member Noyes to waive reading of subject minutes, approve as written, and order filed. The motion carried by the following roll call vote Ayes: Adams, Glover, Ridgeway, Noyes (abstained from the approval of the September 27, 1999, minutes), Mayor O'Neil Noes: None Abstain: None Absent: Thomson, Debay 5. MULTI -YEAR MEMORANDUM OF UNDERSTANDING (MOU) WITH THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION (FMA). In response to Council Member Ridgeway's question regarding the compensation adjustments (Item 1), City Manager Bludau clarified that the • 12.5 percent is based on the Fire Battalion Chief being the base position and that this classification would receive a 2.5 percent pay increase pursuant to the Memorandum of Understanding (MOU). Volume 53 - Page 47 INDEX C- 3098/McFadden Farmer Market (38) Human Services Grants (40) Personnel (66) C -2946 Fire Management MOU (38) E • • City of Newport Beach City Council Minutes October 25, 1999 Motion by Council Member Ridgeway to approve the Memorandum of Understanding with the Newport Beach Fire Management Association. The motion carried by the following roll call vote Ayes: Adams, Glover, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: Thomson, Debay 7. NEWPORT BOULEVARD (SR55)/PACIFIC COAST HIGHWAY (SRI) "ARCHES" INTERCHANGE IMPROVEMENTS (C -2886) — COMPLETION AND ACCEPTANCE. Council Member Glover commended Public Works Director Webb and staff for their work on this project. Council Member Ridgeway added that the Arches Interchange project was the largest public works project the City has undertaken and that it was done very smoothly. Motion by Council Member Glover to 1) accept the work and approve the As -Built plans and specifications; 2) authorize the City Clerk to file a Notice of Completion; and 3) authorize the City Clerk to release the bonds 35 days after the Notice of Completion has been recorded in accordance with applicable sections of the Civil Code. The motion carried by the following roll call vote: Ayes: Adams, Glover, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: Thomson, Debay PUBLIC COMMENTS Charles E. Griffin, 732 Bison Avenue, showed a video of a flight over the open space areas surrounding El Toro. He indicated that he is promoting the realignment of the runways because they are situated too close together and slope excessively. He suggested realigning the runways along the broad expanse of open space. Russ Niewiarowski, 20102 Kline Drive, stated that he is Mr. Griffin's partner. He indicated that the video is a climax of their efforts to demonstrate the feasibility of an alternative E1 Toro airport. He noted that no houses in the corridor would be disturbed by this alternative and that this makes a safer and quieter plan. Dolores Otting noted that October has become Breast Cancer Awareness Month in America and passed out an excerpt from a book about breast cancer. She expressed disappointment that only Council Members Thomson and Glover voted against adding recycled wastewater to the water basin. She stated that, even though people do not drink the tap water, people are still bathing in it. She read from the handout that chlorinated shower water releases chloroform, a toxic gas created when chlorine from the chlorination process interacts with the natural organic matter in tap water. Further, that 50 percent of the pollution from water is absorbed through the skin and that the body absorbs more chlorine from a 15 minute shower in chlorinated water than it does from drinking eight glasses of the same water. Ms. Otting Volume 53 - Page 48 INDEX C -2886 Arches Interchange Improvements (38) • City of Newport Beach City Council Minutes October 25, 1999 reported that many women with breast cancer cannot have estrogen, but it is also found in shower water. Ms. Otting noted that Council Member Debay may have a conflict of interest because of her association with the Sanitation District, noting that she receives money for attending meetings and that she voted for the addition of more reclaimed sewage water into the drinking basin. She also expressed concern about term limits and whether council members have the City's best interests at heart since they cannot run for office again. Tom Wall, Orange County Airport Alliance, 2900 Park Newport, Suite 229, reported that the County will release the second of the two environmental impact reports on November 19; they will have 60 days to comment on the document; and then it will go back to the Board of Supervisors for a final vote in May. He emphasized the importance of coordinating the activities of the various airport groups, and expressed his thanks to Council and the public for their support. He stated that the Airport Alliance (along with the Airport Working Group, the Orange County Regional Airport Authority, and County staff and planning agency) have put together a comprehensive and aggressive program for moving the project forward so that the conversion of the El Toro Marine Corp Air Station to a commercial air facility will be completed by 2005. Mr. Wall stated that their plan for the next few months is to continue with the public presentations (10 to 15 a month); seek the membership of businesses, community groups, minority groups, and others who want to build a community- friendly airport at E1 Toro; maintain a database of supporters; maintain a web site; distribute a monthly newsletter and brochures which provide factual information; and begin the production and distribution of a series of 30- minute cable shows. Mr. Wall indicated that he just came from an El Toro Reuse Planning Authority ( ETRPA) meeting in which Capistrano, Saddleback Valley, and Irvine Unified School Districts are now members. He stated that he found it disheartening that the reason the school districts joined ETRPA was because they perceived there would be a detriment to the learning ability and hearing of the students. However, he pointed out that the Irvine Unified School District operated the marine base's elementary school for 27 years without one concern that there would be a detriment to the learning ability or hearing of any of those students. Mr. Wall stated that the community- friendly airport will produce 70 percent less noise than the marine base produced, and found it hypocritical that a school district would try to convince people that there is a detriment when there is no evidence. PUBLIC HEARINGS 23. 22 CORPORATE PLAZA — A REQUEST FOR PC TEXT AMENDMENTS TO INCREASE THE PERMITTED SQUARE FOOTAGE ENTITLEMENT IN THE CORPORATE PLAZA PLANNED COMMUNITY BY TRANSFERRING APPROXIMATELY 45,000 SQUARE FEET OF EXISTING ENTITLEMENT FROM FASHION ISLAND AND BLOCK 600 OF NEWPORT CENTER IN • CONJUNCTION WITH THE CONSTRUCTION OF A NEW OFFICE BUILDING. Mayor O'Neil opened the public hearing. Volume 53 - Page 49 1 1017 X11 Ord 99 -27 Res 99 -70 22 Corporate Plaza/ Amendment 889 (94) City of Newport Beach City Council Minutes October 25, 1999 11011 sT� • Planning Director Temple reported that this application would allow for the construction of one additional office building in Corporate Plaza in the Newport Center. Because there is currently insufficient entitlement in Corporate Plaza to sustain the development, she indicated that The Irvine Company requested the ability to transfer square footage from other parts of Newport Center in order to allow for the construction of the office building. She stated that the transferred square footage is a combination of over 6,000 square feet which currently is assigned to Block 600 of Newport Center, with the balance coming from Fashion Island. She pointed out that the Land Use Element allows for these types of transfers within Newport Center. She indicated that, following a review of the traffic study by the City's Transportation and Development Services Manager, it was determined that the transfer would not create a net detriment to the traffic and circulation system (Primary Finding). The Planning Commission subsequently recommended approval of the transfer and the associated planned community amendments. In response to Council Member Glover's questions, Ms. Temple explained that the square footage being transferred comes from the 6,000 square feet that occupied the Twin Palms restaurant, noting that they transferred retail entitlement from Fashion Island into Block 600 to enable that restaurant to be constructed. Further, about 44,637 square feet will be utilized from Fashion Island so that the same traffic count exists for the office building, based on peak hour traffic generation. Council Member Glover stated that the transfer will create an office building with traffic; however, if it stayed is within Fashion Island, there will be retail sales with traffic. This would create a financial offset for the traffic. Council Member Ridgeway asked what unused base in Fashion Island the 44,637 square feet came from. Ms. Temple clarified that it came from approximately 285,000 square feet of unused property from an entitlement that occurred about four years ago. She added that a traffic study, pursuant to the traffic phasing ordinance, and a General Plan traffic analysis were prepared when the entitlement was conducted. Carol Hoffman, Vice President of The Irvine Company, expressed appreciation for the work staff put into the analysis and noted the unanimous recommendation for approval by the Planning Commission. She stated that the request is indicative of the kind of provisions that have been built into the Newport Center zoning regulations and one that they would like to utilize in response to increasing demands for office space. Ms. Hoffman noted that the office building is in close proximity to the retail center and provides employees the opportunity to make purchases at Fashion Island. She stated that their traffic engineer and a representative from the architectural firm are present to answer any questions. She also expressed appreciation for the opportunity to work with the Harbor View Hills Community Association to ensure that there were no lighting impacts. She added that they will continue to work with them during the implementation stage. • Council Member Glover emphasized that the new traffic phasing ordinance gives Council the ability to study each project and make better decisions. In response to Council Member Glover's question, Ms. Temple confirmed that all of the entitlements have been vested through the traffic phasing Volume 53 - Page 50 City of Newport Beach City Council Minutes October 25, 1999 • ordinance. Council Member Glover stated that she is reticent to take square footage from Fashion Island, emphasizing the City's need to provide a continuous revenue stream. She indicated that her inclination is to protect the retail space. There being no further testimony, Mayor O'Neil closed the public hearing. Motion by Council Member Glover to overturn the action of the Planning Commission by denying the request to transfer 44,637 square feet of regional retail square footage from Fashion Island to Corporate Plaza, but approving the request to transfer 6,520 square feet from Block 600 to Corporate Plaza with the supporting documentation related to the Amendment, subject to the Findings and Mitigation Measures as modified by the Planning Commission. Council Member Glover added that the motion is made with the finding that the amendment to transfer development rights from Fashion Island to the Corporate Plaza Planned Community is not consistent with the standards for transfer contained in the General Plan since the potential commercial tax base would be reduced, thereby limiting the City's ability to implement traffic mitigation. She believed this is not in the best interest of the City. The motion died for lack of a second. Motion by Council Member Noyes to adopt Resolution No. 99 -70 finding the transfer of development rights is consistent with the standards for • transfer contained in the General Plan; introduce Ordinance No. 99 -27, an amendment to the Corporate Plaza Planned Community, approving a transfer of development rights in Newport Center from Fashion Island and Block 600 (Amendment No. 889), and pass to second reading on November 8, 1999; and sustain the action of the Planning Commission and approve the supporting documentation related to the Amendment, subject to the Findings and Mitigation Measures as modified by the Planning Commission: a) the acceptance of a Negative Declaration; b) a traffic analysis; and c) a parking demand study. Council Member Noyes agreed with Council Member Glover, but indicated that this should be considered an exception and should be looked at much harder in the future. He believed that this General Plan Amendment stems from General Plan Amendment 94 -2(B) (Fashion Island expansion) which was adopted on November 14, 1994, by Council Members Hedges, Sansone, Watt, Hart, Cox, Debay, and Mayor Turner. Council Member Glover stated that one could say that she did not agree with what that Council allowed. The motion carried by the following roll call vote Ayes: Adams, Ridgeway, Noyes, Mayor O'Neil Noes: Glover Abstain: None Absent: Thomson, Debay • 24. PUBLIC HEARING TO CONSIDER THE RESOLUTION OF INTENT TO INITIATE PROCEEDINGS FOR THE REORGANIZATION OF TERRITORY. Volume 53 - Page 51 •II�117�/:1 Res 99 -71 LAFCO Application/ Reorganization of Territory/ City of Newport Beach City Council Minutes October 25, 1999 • Mayor O'Neil opened the public hearing. Deputy City Manager Kiff stated that the adoption of the resolution starts a long process that includes notices, mailings, public hearings, a protest measurement, and more. He reported that, if concluded by July 2000, this would be the City's largest annexation and one of its last. He utilized overheads to review the three proposed annexation areas (Bay Knolls, Santa Ana Heights, and Newport Coast and Ridge). Mr. Kiff announced that the City Clerk created a page within the City's internet site consisting of annexation information/staff reports. He reported that Council Policy D -2 requires the City to review several items when considering potential annexations (Attachment A) and that Exhibit C of Attachment A (Fiscal Impact Analysis) shows the anticipated revenues and expenditures for the three areas. He emphasized that the Fiscal Impact Analysis utilized extensive assumptions and that, from a staff perspective, the annexation is in the City's best interest. Mr. Kiff reported that there are no Terms of Agreements (Attachment B) as yet because the Santa Ana Heights group and the Newport Coast group have asked for specific things. The terms still need addressing and will come before Council prior to the first hearing with LAFCO since they will not hear an incomplete application. He indicated that Rich Miller, the gentleman who will be helping the City process the annexation application, and someone from LAFCO are present to answer any questions. • In response to Mayor O'Neil's question, Mr. Kiff confirmed that a plan to take over the current Irvine Ranch Water District (IRWD) service area is included in the application. However, the application is flexible in the event the City decided not to serve water or provide sewer service and if an arrangement is worked out with IRWD. Russ Niewiarowski, 20102 Kline Drive, stated that 200 residents attended an annexation forum and indicated that he lives in west Santa Ana Heights. He requested Council permission to launch a campaign for the west side to detach from Costa Mesa and submit that request to LAFCO. He indicated that he understands that the annexation is only for east Santa Ana Heights, but that the west side would like to follow his neighbors to remain one united community. He stated that they formed the Santa Ana Heights Advisory Committee to pursue the detachment and believed that they could help to become a stronger voice in the stoppage of the John Wayne Airport (JWA) expansion. Mayor O'Neil stated that he is not sure if Council could indicate support for the detachment because west Santa Ana Heights is not in the City's sphere of influence. However, the City has the discretion to amend the boundaries to include additional areas. Council Member Glover noted that east Santa Ana Heights is surrounded on • three sides by Newport Beach and the Bay, and is in the City's sphere of influence. She stated that Costa Mesa is a friendly city and does not want to entertain going into their sphere of influence. She reported that the City is considering annexing Bay Knolls only because the County said the City had to in order to annex the other areas. Volume 53 - Page 52 INDEX Bay Knolls/ Santa Ana Heights/ Newport Coast and Ridge (21) • City of Newport Beach City Council Minutes October 25, 1999 INDEX Council Member Ridgeway reported that he owns property in west Santa Ana Heights and that he would need to remove himself from any discussion on west Santa Ana Heights in the future. He requested that the attention be confined to the matter before Council. Robert W. Ashin, 390 Seawind Drive, stated that there are a lot of people in this area that do not wish to be a part of Costa Mesa. He expressed the opinion that Costa Mesa may be a friendly city to Newport Beach, but is not being a friendly city to them now. Further, that many people believe they will be disenfranchised from their ability to oppose the airport expansion if they are included with Costa Mesa. He presented Mr. Kiff with letters indicating the residents' desire to be a part of Newport Beach and their concern that they will not have a voice in opposition to a JWA expansion. Derek Lesson, 20342 Cypress Street, believed that Santa Ana Heights brings many assets to Newport Beach and that including them to fight the strong opposition to the El Toro Airport and support of the JWA expansion could only help them as a group. He expressed his support in the airport issues and thanked Council for their support. Robert B. Hanley, 1601 Indus Street, stated that he lives in west Santa Ana Heights. City Attorney Burnham emphasized that discussion to include west Santa Ana Heights within the annexation application is inappropriate since the area is not agendized. • James Blaylock, 20192 Bayview Avenue, stated that he strongly supports the annexation and believed that Santa Ana Heights will be a great addition to Newport Beach. He indicated that many people will do whatever they can to help further this process. David Wooders, 20442 Bayview Avenue, stated that he fully supports the annexation and appreciates Council's efforts. Jeff Hamilton, 20102 Cypress Street, stated that he supports the annexation of Santa Ana Heights into Newport Beach. He indicated that he wrote the letter regarding Santa Ana Heights' redevelopment fund and hoped that Council can offer a voice and guidance to ensure that the Santa Ana Heights community receives its maximum allocation. He reported that the redevelopment funds are in excess of $8 million for capital improvements. Charles E. Griffin, 732 Bison Avenue, stated that he helped develop the DC -8 and DC -9 in the late 50's /early 60's, and that the Orange County Airport was specified to be a regional airport at that time. Shortly after the airport expanded, he became active in airport issues because he was awakened by a DC -9. He stated that he has worked with many Santa Ana Heights residents since 1963 to develop a take -off procedure that gives them some relief. He emphasized that it is very important that the City provide them with some representation so that they do not have a conflict of interest with an airport operator. . Kelly Crean, 2211 Mesa Drive, expressed her thanks to Mayor Pro Tem Thomson for attending their neighborhood meeting and indicated that Santa Ana Heights is united in making both sides Newport Beach. She believed that about 98 percent of the 200 at the meeting expressed their desire to be Volume 53 - Page 53 City of Newport Beach City Council Minutes October 25, 1999 • part of Newport Beach and that the City should be proud of this showing. She supports the annexation because the County has been buying property in the neighborhood and building vacant businesses. She stated that the residents have been led to believe that Newport Beach would stand behind them so they would have a voice, believing they have not had a voice with the County. Expressing her concern with JWA expanding and airplanes flying over many homes, Ms. Crean indicated that the El Toro issue is also an important issue to the Santa Ana Heights residents. Mr. Kif£ clarified that the only assurance the City can give Santa Ana Heights residents that life will remain the same is that the City adopted their Speck Plan as its own plan for the area. Council Member Glover stated that she likes the rural feel of Santa Ana Heights and would like to preserve that as much as possible; however, she wants to make sure that the residents understand what the City can and cannot do for them. Regarding Ms. Crean possibly wanting to stop a potential development that is in the redevelopment plan and appropriately zoned, Mr. Kiff indicated that he is unsure of the City's ability to stop development because it is something the County adopted and will continue to pursue until 2026. Barbara Venezia, 20301 SW Cypress Street, stated that she is one of the organizers of the Santa Ana Heights Advisory Committee. She indicated that her neighborhood is very united on this issue, wants to see the annexation happen, and is willing to do whatever it takes to do that. • There being no further testimony, Mayor O'Neil closed the public hearing. Motion by Mayor O'Neil to adopt Resolution No. 99 -71 entitled "Resolution of Application by the City Council of the City of Newport Beach Requesting the Local Agency Formation Commission to Initiate Proceedings for the Reorganization of Territory ". The motion carried by the following roll call vote Ayes: Adams, Glover, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: Thomson, Debay CURRENT BUSINESS 25. FIVE YEAR PROJECTION OF GENERAL FUND REVENUES, EXPENDITURES AND INCREASES /(DECREASES) TO FUND BALANCE. City Manager Bludau stated that Council Member Glover previously requested that a revenue and expenditure projection be brought to Council for review. He recommended that this become an annual report so that the City is always updated and has a five -year projection. • Administrative Services Director /Treasurer Danner reported that the forecast is a management tool designed to promote discussions on economic trends, service levels, and revenue and expenditure alternatives. He emphasized that the model has limitations and is only as accurate as the Volume 53 - Page 54 INDEX 5 -Year Projection/ Revenues/ Expenditures/ Fund Balance (40) City of Newport Beach City Council Minutes October 25, 1999 • assumptions used to build it. He explained that assumptions were made relative to capital expenditures and airport expenditures. Further, assumption included that growth would decline as the City moves into a period of less economic growth and that operating expenditures would increase as inflation pressures increase. He stated that the projections did not include revenues or expenditures for any potential annexation. Mr. Danner reported that the forecast concluded that the City's fiscal posture will remain adequate to fund operations at the anticipated level over the five -year period; however, unless something is done, the City will begin to see a decline in the City's fund balance beginning in the fifth year. He stated that the forecast includes an executive summary, assumptions, forecasts, potential revenue enhancements, detailed revenue /expenditure projections, and pro -forma fund balance statements through the 2004 -2005 fiscal year. Additionally, 14 new or expanded revenue sources have been identified for Council to consider at future meetings. He reviewed the recommendations outlined in the staff report and added that Deputy Director Kurth and Revenue Manager Everroad also assisted in generating the staff report. Council Member Glover stated that she asked for this to be placed on the agenda because she has concerns about future revenue, provided the level of service the community is accustomed to. She indicated that figures can be generated to compare the City's level of service to other cities, and reported that residents identified being a full- service city as very important to them. • Council Member Glover noted that the City has 700 employees where cities with similar population have about 30 employees. Council Member Glover stated that paying the City's bills is one of Council's responsibilities and that it is up to Council to ensure that there is revenue. She pointed out that Council does not approve a project because it generates revenue, but that the City is going to have to deliberately approve some of these projects because of the revenue they can bring. She noted that 50 percent of the City is in the ocean and will not produce revenue; the City is not connected to a major freeway and will rarely be participating in activities that are contingent on revenue; and the City is not the destination city it used to be for restaurants, shopping, and theaters. She emphasized that every citizen should be concerned about this. She thanked staff for the report and invited the public to review the projections. Council Member Noyes thanked Council Member Glover for requesting this report. He expressed his amazement that there are only two members of the public in attendance for this discussion when there was previously a room full of people in attendance for their own issues. He also noted that the people who are criticizing Council on traffic issues are also not in attendance. He emphasized that the responsibility of having a positive fiscal budget rests heavily on Council's shoulders. Mayor O'Neil noted that two members of the media are also present and stated that they could possibly get the word out to the public. • Mayor O'Neil also thanked Council Member Glover for requesting this report, stating that the City is going to be faced with some big decisions in the near future and that balancing the budget sometimes becomes a difficult decision to make if the high level of service is expected to continue. Volume 53 - Page 55 INDEX City of Newport Beach City Council Minutes October 25, 1999 • Keith Garrison, 311 Island Avenue, requested and received a copy of the staff report. Mr. Bludau stated that, as City Manager who also bears the responsibility with Council to make sure the City has a government that functions well and provides services that the community wants, it gives him small comfort to see the numbers produced over the next five years. Council Member Noyes stated that the figures do not include any liability claims made against the City and pointed out that Council has been very courageous about fighting them. He estimated the savings in the last three years to be about $6 million. Regarding points of sales, Council Member Glover requested that the City pursue utilizing local banks or have a bank relocate to the City to process vehicle leases, noting that the City is not deriving any revenue from the leases that are handled outside the City. She also requested that Mr. Everroad look into boat sales that are being conducted in international waters because the City does not receive any revenue from these sales. Mr. Danner stated that there is recent legislation to help cities capture sales tax revenues from vehicle leases, but this is still very difficult to do. Council Member Glover stated that the City needs to pursue this and suggested using the City's lobbyist for this. • Council Member Noyes stated that a big issue for all governments is the loss of sales tax revenue through internet sales and mail orders. He emphasized that it helps to shop in Newport Beach because the City derives one percent of every dollar that is spent. Additionally, he believed that the City should look into having a "City of Newport Beach" credit card because the organization gets a portion of every dollar that is spent no matter where the card is used. 0 MOTION FOR RECONSIDERATION - None. ADJOURNMENT - 8:40 p.m. The agenda for the Regular Meeting was posted on October 20, 1999, at 3:10 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk NEWgp� &, N+ — - W YIWri./ p Recording Secretary���%}}yy��� yJ �1."o j°' Mayor Volume 53 - Page 56 INDEX