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HomeMy WebLinkAbout06/28/2011 - Regular MeetingCity Council Minutes City Council Regular Meeting June 28, 2011 — 7:00 p.m. I. STUDY SESSION - 4:00 p.m. IL CLOSED SESSION - 5:00 p.m. A. Conference with Legal Counsel - Existing Litigation (Government Code 6 54956.9 Lah: Four matters: 1. Benard u. Newport Beach, Orange County Superior Court Case No. 30-2011- 00456286 2. Frizzell and Shulman u. Newport Beach, Orange County Superior Court Case No. 30 -2011 -00472517 -CU -OE -CJ C 3. Matheis u. Newport Beach, Orange County Superior Court Case No. 30-2011- 00477924 4. Nine u. Newport Beach, Orange County Superior Court Case No. 30-2011- 00465231-CJC B. Conference with Labor Negotiators (Government Code 5 54957.6): Agency Designated Representatives: Dave Kif. . City Manager, Terri Cassidy, Human Resources Director Employee Organization: All Labor Associations: Association of Newport Beach Ocean Lifeguards (ANBOL); Lifeguard Management Association (LMA); Newport Beach Fire Management Association (NBFMA); Newport Beach Firefighters' Association (NBFA); Police Management Association (PMA); Police Employees Association (PEA); City Employees Association (CEA); Newport Beach Professional & Technical Employees Association (Prof - Tech); Newport Beach Employees League (NB LEAGUE); Newport Beach Part -Time Unit (UPEC, Local 777) C. Conference with Real Property Negotiator (Government Code 6 54956.8): One matter: Property: Marina Park Mobile Home Park, 1770 W. Balboa Blvd., Newport Beach City Negotiator: Dave Webb, City Engineer Negotiating Parties: Curtis Fossum State Lands Commission Under Negotiation: Resolution of boundary between Tidelands and Uplands D. Public Employee Performance Evaluation (Government Code 6 54957(b)(1)): The City Council will meet in closed session to consider the appointment, employment, evaluation of performance, discipline, or dismissal of one public employee. Title: City Attorney Volume 60 - Page 177 City of Newport Beach City Council Minutes June 28, 2011 III. RECESS IV. RECONVENE AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council. Member Daigle VI. CLOSED SESSION REPORT Regarding Item ILA, City Attorney Hunt reported that, by a vote of 7-0, Council authorized the defense of Bernard u. Newport Beach and Matheis v. Newport Beach. Further, by a vote of 6-0 with Council Member Curry recusing himself, Council authorized the defense of Nine v. Newport Beach. Regarding Item ILD, City Attorney Hunt reported that, by a vote of 71-0, Council approved and authorized the Mayor to execute a Mutual Separation Agreement with the City Attorney. The agreement is to provide that the City Attorney is mutually separating amicably with the City of Newport Beach, he will assist the City in transitioning, he will stay until the time his successor is appointed and is seated or until September 23, 2011, whichever occurs fust, and three months of severance pay will be paid pursuant to the Separation Agreement. On behalf of the City Council, Mayor Henn thanked City Attorney Hunt for his accomplishments, professionalism and service over the last two and a half years. VII. PLEDGE OF ALLEGIANCE - Council Member Selich VIII. INVOCATION - Reverend Robert Jordan Ross, Newport Universalist Society IX. PRESENTATIONS - None X. NOTICE TO THE PUBLIC XI. 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 Hill mentioned that since the passing of the Revised Zoning Code some individuals on the Peninsula that own parking lots have received a notice from the City placing new conditions on their property, as well as requesting that they apply for a new Minor Use Permit at the cost of $1,936. He requested that staff look into this matter and identify if there are any other items in the Zoning Code revision that are causing existing properties to become non -conforming. Council Member Rosansky announced that the Orange County Humane Society's ribbon cutting ceremony will be held on July 23 to celebrate the transfer of the City's animal shelter from the Newport Beach Animal Shelter in Costa Mesa to the Orange County Humane Society in Huntington Beach. Council Member Daigle announced that the City will be malting street widening and roadway improvements to the Jamboree Road Bridge, which was funded by the City of Irvine through a negotiated settlement. Council Member Curry reported attending the Art in the Park program sponsored by the Arts Foundation and the Concert in the Park program sponsored by the Art Commission on June 25, mentioned the upcoming Shakespeare by the Sea and reported that the Government Finance Officers Association awarded the City of Newport Beach its Certificate of Achievement for Excellence and Volume 60 - Page 178 City of Newport Beach City Council Minutes June 28, 2011 Financial Reporting on June 15. Council Member Selich requested that staff provide Council with a report regarding the Revised Zoning Code malting sure that the City is not having any non -conforming properties as unintended consequences of the revisions made to the Zoning Code. Mayor Pro Tem Gardner reported attending a Little League All -Stars game against Laguna Beach. She also reported on an issue raised during today's Study Session regarding charging residents for parking at the Dunes on the 41h of July and a potential conflict with Council Policy B-12 because the City contributes money for the fireworks. City Manager Kiff stated that the issue has been resolved and clarified that Newport residents will not be charged if they come to see the fireworks later in the evening. Mayor Hemi reported attending and presenting to the Corona del Mar High School Boys Volleyball Team a National Champions Award from ESPN Rise Magazine on June 17, a dinner honoring Tom Johnson as the 2011 Newport Beach Citizen of the Year, the Queen of Angels groundbreaking ceremony, the Mr. Irrelevant Week Kickoff Celebration on June 20, the grand opening of Curl Fitness, and the Police Department promotional and service award ceremony on June 28. He noted that the Police Department made a presentation on July 4th preparations on the Peninsula during today's Study Session, and announced the first-ever 4't' of July is for Families - Newport Peninsula. Bike Parade and Community Festival- He also announced a variety of weeklong events to be held for the Firefighter's Olympics starting on July 1.0. XII. CONSENT CALENDAR A. READING OF MINUTES/ORDINANCES AND RESOLUTIONS 1. MINUTES FOR THE STUDY SESSION AND REGULAR MEETINGS OF JUNE 14, 2011. [100-2011] Waive reading of subject minutes, approve as written, and order filed. . 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. B. ORDINANCES FOR INTRODUCTION 3. CITY ADMINISTRATIVE DEPARTMENT RESTRUCTURING AND RENAMING. [100-2011] Introduce Ordinance No. 2011-17, amending Chapter 2.12 of Title 2 of the Newport Beach Municipal Code pertaining to administrative departments and organization of the City, and pass to second reading on July 12, 2011. C. RESOLUTIONS FOR ADOPTION 5. APPROVAL OF THE ORANGE COUNTY TRANSIT AUTHORITY (OCTA) SENIOR MOBILITY PROGRAM COOPERATIVE AGREEMENT (C-4852) AND ACCEPTANCE OF GRANT FUNDS FOR THE OASIS TRANSPORTATION PROGRAM. [381100-2011] a) Adopt Resolution No. 2011-59 authorizing the Senior Mobility Cooperative Agreement with the Orange County* Transportation Authority (OCTA) and acceptance of associated grant funds, effective July 1, 2011 through June 30, 2016, and authorize the Recreation and Senior Services Director to act as the authorized agent for the City to execute any actions necessary to implement the Cooperative Agreement for the Senior Mobility Program. Volume 60 - Page 179 City of Newport Beach City Council Minutes June 28, 2011 6. SUPPLEMENTAL MEMORANDUM OF UNDERSTANDING (MOU) WITH THE LIFEGUARD MANAGEMENT ASSOCIATION (LMA) (C-2058). [381100- 20111 a) Adopt Resolution No. 2011-60 approving the Supplemental Memorandum of Understanding between the City of Newport Beach and the Newport Beach Lifeguard Management Association (LMA); b) adopt amended Resolution No. 2011-61 to eliminate the paying and reporting of the Employer Paid Member Contribution (EPMC) for members of the Lifeguard Management Association. [Council Member Rosanshy voted No on this item] City Manager Kiff announced that Resolution No. 2011-61 should be amended to reflect the pay period of July 2, 2011, not July 1, 2011. DISPOSITION OF SURPLUS ASSESSMENT DISTRICT FUND BALANCES. [100-2011] a) Adopt Resolution Nos. 2011-62 and 2011-63, which authorize the City to charge the Assessment Districts interest for funds advanced to it, declare the remaining improvement fund balance as surplus and provide staff specific direction as to the distribution of improvement fund balances in Assessment Districts 68 (Newport Shores) and 69 (West Newport); b) adopt Resolution Nos. 2011- 64, 2011-65, 2011-66, 2011-67 and 2011-68, which declare the remaining ITCC fund balance surplus and authorize staff to disburse excess ITCC funds to the current property owners of those parcels whose ITCC obligation was paid in cash in Assessment Districts 70 (Bay Shores), 74 (Island Avenue), 75 (Balboa Village Business), 82 (Goldenrod Avenue) and 86 (Balboa Peninsula); and c) adopt Resolution Nos. 2011.-69, 2011-70, 2011-71, 2011-72, 2011-73 and 2011-74, which declare the remaining redemption fund balance as surplus and provide staff specific direction as to the disbursement of excess redemption funds to current property owners in Assessment Districts 58 (Cannery Village), 59 (McFadden Square), 63 (Newport Island), 66 (East Newport), 71 (Balboa Boulevard) and 72 (Balboa Coves). [Council Member Rosanshy recused himself from voting on this item] D. CONTRACTS AND AGREEMENTS 8. WEST NEWPORT OIL FIELD REVIEW, EVALUATION, AND MODIFICATION PROGRAM - APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH NETHERLAND, SEWELL & ASSOCIATES, INC. [100-20111 Continue this item to the July 12, 2011 Council meeting to provide staff sufficient time to finalize the Professional Services Agreement. 9. SEASHORE DRIVE AND PEARL AVENUE TIDE GATE REPLACEMENT - COMPLETION AND ACCEPTANCE OF CONTRACT 4476. [381100-20111 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion; b) authorize the City Clerk to release the Labor and Materials Bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and c) release the Faithful Performance bond one year after Council acceptance. 10. STREETLIGHT MAINTENANCE SERVICE AGREEMENT (C-4845). [38/100- 2011] Approve the contract between Fluoresco Lighting & Signs, Inc. of Pomona and the City of Newport Beach for streetlight maintenance services, and authorize the Mayor and City Clerk to execute the contract. 11. APPROVAL OF AGREEMENT FOR PARAMEDICIMEDICAL BILLING AND COLLECTION SERVICES (C-4531). [381100-2011] a) Approve the execution of an agreement directly with Wittman Enterprises for ambulance billing collection services Volume 60 - Page 180 City of Newport Beach City Council Minutes June 28, 2011 in the amount of up to $165,000 annually for a period of three years with the option to renew for two additional one year periods; and b) approve Budget Amendment No. 11BA-047 increasing revenue estimates in account 2340-5065 by $165,000 and increasing expenditure appropriations in 2340-8706 (Ambulance Services) by $165,000. E. MISCELLANEOUS 12. PLANNING COMMISSION AGENDA FOR JUNE 23, 2011. Receive and file written report. 13. REAFFIRM COUNCIL INVESTMENT POLICY (F-1). Reaffirm Council Investment Policy (F-1). S24. LABOR NEGOTIATOR RETENTION - APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH LIEBERT, CASSIDY &WHITMORE TO SERVE AS LABOR NEGOTIATORS. Approve the recommendation of the Council ad hoc committee designated to interview potential labor negotiators, and authorize the Mayor to execute a standard professional services agreement for Liebert, Cassidy & Whitmore to serve as the City's labor negotiator in the coming round of labor negotiations. Motion by Mayor Pro Tem Gardner, seconded by Council Member Rosansky to approve the Consent Calendar, except for the items removed (4 and 14); and noting the No vote by Council Member Rosansky on Item 6, the recusal by Council Member Rosansky on Item 7, the amendment to Resolution No. 2011-61 (Item 6), and the addition of Budget Amendment No. IIBA-047 to Item 11.. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle XIII. ITEMS REMOVED FROM THE CONSENT CALENDAR 4. ORDINANCE PERTAINING TO THE BUILDING AND FIRE BOARD OF APPEALS; AND RESOLUTION SETTING FORTH THE MEMBERSHIP, TERM, AND PURPOSE AND RESPONSIBILITIES OF THE BUILDING AND FIRE BOARD OF APPEALS. [100-20111 Jim Mosher thanked Community Development Director Brandt for all of her help regarding this item, but expressed his concerns regarding the amendment to the procedures as defined in the Municipal Code, the adopted fee amount in the Master Fee Schedule for making an appeal to the Board, the appeal process, and the qualifications for individual Board members and building officials. City Manager Piff stated that, due to the technicalities of the appeal process, the Board is appropriately structured as is. Motion by Council Member Curry, seconded by Council Member Selich to a) introduce Ordinance No. 2011-14 amending Section 14.30.030(D) of Chapter 14.30 and adding Chapter 15.80 to Title 15 of the Newport Beach Municipal Code, pertaining to the Building and Fire Board of Appeals, and pass to second reading on July 12, 2011: and b) adopt Resolution No. 2011-58 setting forth the membership, term, and purpose and responsibilities of the Building and Fire Board of Appeals, and waiving Council Policy A-2 relative to the number of terms that members of the Building and Fire Board of Appeals can serve. The motion carried by the following roll call vote: Volume 60 - Page 181 City of Newport Beach City Council Minutes June 28, 2011 Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle 14. REVIEW OF THE NEIGHBORHOOD REVITALIZATION COMMITTEE'S PRIORITY RECOMMENDATIONS FOR THE SIX NEIGHBORHOOD REVITALIZATION AREAS. [100-20111 Bob Rush expressed his concern regarding the order of the Neighborhood Revitalization Committee's priority recommendations for the six areas and stated that the Neptune Avenue Corridor is a higher priority than Balboa Boulevard in the West Newport Beach area. Mayor Henn stated that it was concluded at the last Neighborhood Revitalization Committee meeting that the Neptune Avenue Corridor would be placed on a List of potential projects to be evaluated, and mentioned that there will be a process by which new projects are added to the priority list. Council Member Rosansky stated that the Neptune Avenue Corridor is a deficient street and encouraged the City and the Public Works Department to look into this issue and suggested using the Beach Encroachment Fund to fund this potential project. Council Member Rosansky recused himself from this item and left the Council Chambers stating that he owns property within 300 feet of the medians on Coast Highway. Motion by Mayor Pro Tem Gardner, seconded by Council Member Curry to affirm the Neighborhood Revitalization Committee's priority recommendations for the following revitalization areas: Priority I - Beginning in Fiscal Year 2011/12: 1) Via Lido Marina Village/City Hall site. 2) Balboa Village, 3) West Newport Beach - Balboa Boulevard, West Coast Highway, 4) Corona del Mar entry at MacArthur Boulevard, 5) Santa Ana Heights - Bristol Street; and Priority 2 - Beginning in Fiscal Year 2012/13: 1) Mariner's Mile. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle XIV. PUBLIC COMMENTS Bill Cool spoke in favor of the City taking action against the Miramar rehabilitation home in his neighborhood. XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Rosansky invited the public to attend the fust Redistricting Committee meeting which will be held on June 30 in the Council Chambers. Tentative maps will be presented and reported that the seven Council District lines will be redrawn to accommodate for the changes in the population, as reported by the 2010 National Census. Council Member Daigle reported that the Citizens Aviation Committee will be posting frequently asked questions and responses on its website and mentioned complaints from Crystal Cove regarding planes. She noted that permission to turn planes early comes from Air Traffic Control not from the City or John Wayne Airport (JWA), mentioned that the City, airport staff, and residents from Crystal Cove will be meeting with the Federal Aviation Administration (FAA) at their regional office in Hawthorne and asked for the public's patience since the situation involves the Federal Government. Mayor Pro Tem Gardner reported that the Bicycle Safety Committee meeting date has been moved to July 11 since their normal meeting date falls on the 4th of July holiday; however, the meeting time Volume 60 - Page 182 City of Newport Beach City Council Minutes June 28, 2011 Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle 14. REVIEW OF THE NEIGHBORHOOD REVITALIZATION COMMITTEE'S PRIORITY RECOMMENDATIONS FOR THE SIX NEIGHBORHOOD REVITALIZATION AREAS. [100-2011] Bob Rush expressed his concern regarding the order of the Neighborhood Revitalization Committee's priority recommendations for the six areas and stated that the Neptune Avenue Corridor is a higher priority than Balboa Boulevard in the West Newport Beach area. Mayor Henn stated that it was concluded at the last Neighborhood Revitalization Committee meeting that the Neptune Avenue Corridor would be placed on a list of potential projects to be evaluated, and mentioned that there will be a process by which new projects are added to the priority list. Council Member Rosansky stated that the Neptune Avenue Corridor is a deficient street and encouraged the City and the Public Works Department to look into this issue and suggested using the Beach Encroachment Fund to fund this potential project. Council Member Rosansky recused himself from this item and left the Council Chambers stating that he owns property within 300 feet of the medians on Coast Highway. Motion by Mayor Pro Tem Gardner, seconded by Council Member Curry to affirm the Neighborhood Revitalization Committee's priority recommendations for the following revitalization areas: Priority 1 - Beginning in Fiscal Year 2011/12: 1) Via Lido Marina Village/City Hall site, 2) Balboa Village, 3) West Newport Beach - Balboa Boulevard, West Coast Highway, 4) Corona del Mar entry at MacArthur Boulevard, 5) Santa Ana Heights - Bristol Street; and Priority 2 - Beginning in Fiscal Year 2012/13: 1) Mariner's Mile. The motion carried by the following roll call vote: Ayes: Council Member Hill, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle Recused: Council Member Rosansky XIV. PUBLIC COMMENTS Bill Cool spoke in favor of the City taking action against the Miramar rehabilitation home in his neighborhood. XV. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Rosansky invited the public to attend the first Redistricting Committee meeting which will be held on June 30 in the Council Chambers. Tentative maps will be presented and reported that the seven Council District lines will be redrawn to accommodate for the changes in the population, as reported by the 2010 National Census. Council Member Daigle reported that the Citizens Aviation Committee will be posting frequently asked questions and responses on its website and mentioned complaints from Crystal Cove regarding planes. She noted that permission to turn planes early comes from Air Traffic Control not from the City or John Wayne Airport (JWA), mentioned that the City, airport staff, and residents from Crystal Cove will be meeting with the Federal Aviation Administration (FAA) at their regional office in Hawthorne and asked for the public's patience since the situation involves the Federal Government. Mayor Pro Tem Gardner reported that the Bicycle Safety Committee meeting date has been moved to July 11 since their normal meeting date falls on the 41h of July holiday, however, the meeting time Volume 60 — Page 183 City of Newport Beach City Council Minutes June 28, 2011 Mayor Henn opened the public hearing. Hearing no testimony or protests, he closed the public hearing. Motion by Council Member Hill, seconded by 0 to adopt Resolution No. 2011-77 confirming the levy of the Corona del Mar BID assessment for the 2011-12 fiscal year since the protests represented less than 50 percent of the total assessment amount. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle 18. RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT (BID) RENEWAL: CONDUCT PUBLIC HEARING AND ADOPT RESOLUTION FOR RENEWAL OF THE BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2011-2012. [100-20111 Mayor Henn opened the public hearing. Hearing no testimony or protests, he closed the public hearing. Motion by Mayor Pro Tem Gardner, seconded by Council Member Rosansky to adopt Resolution No. 2011-78 confirming the levy of the Restaurant Association BID assessment for the 2011-12 fiscal year since the protests represented less than 50 percent of the total assessment amount. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle 19. VIA LIDO AMENDMENTS (PA2011-024) - 3363, 3377 VIA LIDO AND 3378 VIA OPORTO - AMENDMENTS TO THE GENERAL PLAN, COASTAL LAND USE PLAN, AND THE ZONING CODE TO CHANGE THE DESIGNATIONS OF SUBJECT PROPERTY FROM MULTIPLE -UNIT RESIDENTIAL (RM) TO MLXED-USE VERTICAL (MU -V). [continued from the June 14, 2011 meeting] [100-20111 Senior Planner Ung provided the staff report and utilized a PowerPoint presentation Mayor Henn opened the public hearing. Ryan Chase, representing the property owner, spoke briefly about the history of the property and its long-term existing commercial uses. He requested that its current zoning be changed to the way it previously was, noting that a zoning change to residential would make it problematic to redevelop the site due to its small size and unique shape. He mentioned possible setbacks and financial considerations that would be applicable. Hearing no further testimony, Mayor Henn closed the public hearing. Motion by Council Member Curry, seconded by Mayor Pro Tem Gardner to a) adopt Resolution No. 2011-79 approving General Plan Amendment No. GP2011-003 and Local Coastal Plan Amendment No. LC2011-002; and b) introduce Ordinance No. 2011-18 approving Code Amendment No. CA2011-005, and pass to second reading on July 12, 2011. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayoi Volume 60 - Page 184 City of Newport Beach City Council Minutes June 28, 2011 Henn, Council Member Selich, Council Member Curry, Council Member Daigle 20. 3 -THIRTY -3 WATERFRONT RESTAURANT APPEAL (PA2011-041) - 333 BAYSIDE DRIVE - CONDITIONAL USE PERMIT NO. UP2011-007 - AN APPEAL OF THE PLANNING COMMISSION'S DENIAL OF AN APPLICATION FOR A NEW CONDITIONAL USE PERMIT REQUESTING TO INCREASE THE HOURS OF OPERATION FOR AN EXISTING OUTDOOR DINING PATIO FROM 9:00 A.M. TO 9:30 P.M. DAILY TO 9:00 A.M. TO 1:00 A.M. DAILY. The staff report was presented by Associate Planner Brown, who utilized a PowerPoint presentation and gave a brief overview of the project. Mayor Pro Tem Gardner inquired as to how sound can be attenuated from an outdoor dining establishment without enclosing it completely. Associate Planner Brown stated that the new conditions include additional sound attenuations with the intent of providing different materials such as a retractable roof that can be closed. Council Member. Selich stated that he appealed this item because he felt there was additional room for discussion and mentioned issues of concern from both the residents on Linda Isle and the owner/operator of the restaurant. He reported that there have been a series of meetings between the applicant and the homeowners where they both agreed to some conditions, they desire to have the outdoor dining patio attenuated to the same level of sound as the indoor portion of the restaurant after 7:00 p.m., stated that most outdoor dining patios in Newport Beach have become closed structures in many ways, stated that he felt a reasonable interpretation would be that after 7:00 p.m., it would be beneficial to attenuate the noise even if it meant closing the windows and roof to keep the noise inside the building, mentioned noise and disturbances from the guest docks, and stated that he is in support of the agreement worked out between the applicant and the homeowners across the waterfront. He encouraged Council to move ahead with the item. Mayor Pro Tem Gardner stated that by approving this and requiring the patio to be enclosed, a precedent would be set with regard to the amount of parking required for enclosed spaces as opposed to unenclosed patios of restaurants. In response to questions from Council, Community Development Director Brandt clarified that the supplemental memorandum contains a series of conditions that would replace the previous conditions that were considered by the Planning Commission but not adopted because they did not approve this application, there are distinct performance standards that are required for the attenuation of the outdoor patio as part of the Conditions of Approval, the plexiglass windows will be replaced with sound -rated windows which will be reviewed and tested by an acoustical engineer with quarterly reports being made to the Community Development Director, a one-year report will be submitted to the Planning Commission for consideration, and stated that the goal of the proposed revised conditions is to ensure that the sound associated with the extended hours of operation are no different from the building if the patio were not in operation. Discussion ensued between Council and staff regarding the Balboa Marina temporary guest slip use program. Mayor Henn opened the public hearing. Dennis O'Neil, representing Jeff Ruder, the owner of 3 -Thirty -3 Waterfront Restaurant, respectfully requested that Council adopt the resolution reversing the decision of the Planning Commission, thereby approving the extension of hours of operation for the outdoor dining Volume 60 - Page 185 City of Newport Beach City Council Minutes June 28, 2011 patio, thanked Council Member Selich for working with the applicant, and stated that the applicant agrees with the changes, findings and conditions associated with the resolution, including the substitution of the new Condition No. 4. Frank Battaile, representing residents opposed to this project at the Planning Commission level, thanked Council Member Selich for working out the current agreement and thanked Mayor Pro Tem Gardner for understanding the residents' issues and concerns, stated that his clients appreciate that the revised conditions require attenuation of the outside dining area to the same level of noise as the inside dining area, and requested that materials be used that can abate the noise subject to the new Condition No. 4. Al DeGrove stated that he is mostly in agreement with what has been negotiated, expressed his concerns regarding the extended hours of operation to 1:00 a.m., stated that there are no immediate consequences for violations to the Condition of Approval, and requested that repercussions be added to the revised conditions in the event that a sound engineer determines that the outdoor dining patio exceeds the noise levels. Community Development Director Brandt explained the process for addressing violations to the Condition of Approval. In response to questions from Council, City Attorney Hunt clarified that if the applicant violates the terns of the Conditional Use Permit or gets engaged in activities that trigger the operation under the Operator's License, the Chief of Police can identify it and cut back their actual operations. Bill Klein stated that approval of this project will set a precedent, expressed concerns regarding property values, the cost of enforcement and eventual legal actions, stated that this project has not been approved by the Linda Isle Community Association, mentioned noise disturbances, and recommended that Council give this project greater consideration than what has been given by Planning staff. Donna Viana, Vice -President of the Linda Isle Homeowners Association, stated that her main issue relates to noise and that if noise cannot be attenuated, then the application needs to be denied. Don Mcliella stated that noise from the parking lot is still a problem and hoped that the attenuation issue can be resolved. Carolyn Klein believed that the restaurant is an attractive nuisance that attracts a loud drinking crowd, quarterly monitoring of the restaurant is not sufficient, suggested monitoring the restaurant on a weekly basis and the need for additional parking. Dr. David Benvenuti stated that the restaurant is a disservice to Newport Beach and if it cannot be noise proofed, then it needs to be shut down. Max Liskin spoke regarding noise concerns, homeowners verses businesses, and how these types of businesses impact residents. In response to public hearing comments and concerns, Dennis O'Neil stated that the applicant proposes to ensure that sound associated with the extended hours of operation are no different from the building if the patio were not in operation, spoke regarding noise and noise attenuation, resident concerns, the Operator License, and requested that Council reverse the decision of the Planning Commission and adopt the resolution with all the new conditions and findings. Volume 60 - Page 186 City of Newport Beach City Council Minutes June 28, 2011 XVII. In response to cost -monitoring concerns from City Manager R ff, Community Development Director Brandt recommended that the first sentence of Condition No. 4b be expanded to say that the applicant will be required to fund a quarterly monitoring test and report by an acoustical engineer, incorporate at a minimum one series of Thursday, Friday or Saturday within the quarter which gives the Community Development Director discretion to increase the number of monitoring tests performed within the quarter if need be, and clarified that the applicant will pay the total cost for the testing company which will be hired by the City. Dennis O'Neil agreed to grant the Community Development Director discretion to increase the frequency of noise testing to a minimum of one per quarter. Hearing no further testimony, Mayor Henn closed the public hearing. Motion by Council Member Selich, seconded by Council Member Daigle to reverse the decision of the Planning Commission and adopt amended Resolution No. 2011-80 for Conditional Use Permit No. UP 2011-007. Discussion ensued between Council regarding sound attenuation, the necessity of extended hours of operation, compliance with the Conditional Use Permit, and the Operator License. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Henn, Council Member Selich, Council Member Daigle Noes: Mayor Pro Tem Gardner, Council Member Curry Mayor Henn noted that Item 22 (Special Event Support Recommendations) need to be discussed prior to discussing the budget (Item 21). Without objection, it was the consensus of Council to discuss Item 22 before Item 21. 22. FY 12 SPECIAL EVENT SUPPORT RECOMMENDATIONS (C-4859). [381100-20111 Public Information Manager Finnigan presented the staff report and utilized a PowerPoint presentation to discuss FY 12 recommendations, the new review process, reduced rates, fee reduction examples, 2011 applications, Special Events Advisory Committee (SEAL) review, the staff committee and recommendations, and next steps. Richard Luehrs, President of the Newport Beach Chamber of Commerce, spoke regarding the Chambers Political Action Committee (PAC), the policy that separates money donated for PAC purposes from their general fiord, membership investments to the Chamber, voluntary contributions to the PAC, and action by the Board of Trustees. He thanked Council, staff and SEAC for all of their hard work and spoke regarding the core competencies of the Chamber of Commerce and the need for funding for the Christmas Boat Parade. Bob Rush stated that he has a problem with the City funding organizations that are associated with a PAC, spoke regarding fee waivers, auditing provisions, FPPC reports, mixing of funds between a political organization and a non-profit organization, submitted documents to Council, and suggested that the Chamber of Commerce create a system that will require them to file FPPC reports in the same manner as the Firefighter Association PAC. Gregg Shwenk, Executive Director of the Newport Beach Film Festival, thanked the City for their continued support and spoke regarding attendance records, films and partnerships, Film Volume 60 - Page 187 City of Newport Beach City Council Minutes June 28, 2011 Festival volunteers, and key markets Todd Quartararo, Newport Beach Film Festival, spoke regarding outreach for the Film Festival; regional, national and international advertising; and editorial support. Bernie Svalstad, Vice President of the Corona del Mar Chamber of Commerce, thanked Council and staff for their tremendous support, spoke regarding a two-tier evaluation system, Christmas Walk fees, and their proposed recommended funding. Lisa Walter, Executive Director of the Orange County Susan G. Iiomen Foundation, spoke regarding the Race for the Cure event, criteria for the proposed recommended funding, and support given back to the Newport Beach community. Cindy Brenneman, Director of Volunteer Services for the Orange County Susan G. Komen Foundation, spoke regarding the criteria for the proposed recommended funding, Race for the Cure advertising, the vital services provided, and requested that their funding be increased. Shari Ten Eyck, Board of Directors, Corona del Mar Chamber of Commerce, thanked the City for their continued support and spoke regarding the Christmas Walk. Jim Walker, Bungalow Restaurant, spoke regarding the importance of the Christmas Walk and its proposed recommended funding. Peggy Fort, Chairperson, American Cancer Society Rely for Life, thanked the City for their continued support and spoke regarding their request for in-kind fee waivers. Gary Putscher, Vice President/Race Director for the OC Marathon Foundation, thanked the SEAC Committee for their hard work, spoke regarding the history and the purpose of the OC Marathon in Newport Beach, and stated that they understanding the proposed funding recommendation. Justin Carr, Fire Captain/Newport Beach Firefighters Association/California Firefighters Olympics, gave a brief overview of events that will occur during the 40th Annual California Firefighters Olympics hosted in Newport Beach, stated that they are asking for in-kind donations only, and mentioned groups that benefit from the Firefighters Olympics. Diane Daruty, Newport -Mesa Spirit Rum, thanked the City, SEAC and staff for their continued support. Milo spoke regarding the use of the word "Olympics." Sheri Drewry, President of the Newport Beach Restaurant Association, spoke regarding Restaurant Week. Peggy Fort, representing the Restaurant Association Business Improvement District (BID), spoke regarding approximate annual revenue per establishment, Restaurant Association BID programming and marketing campaigns, like Restaurant Week, and requested that Council consider funding Restaurant Week at the level they had requested. Council Member Curry spoke regarding the importance of community programs and the infeasibility of entitlement to a lifetime annuity of a public subsidy at the same level it has always been. He proposed amendments to the SEAC recommendations including an audit by staff and the segregation of funds related to the Christmas Boat Parade and Taste of Newport, an additional $15,000 for the Newport Beach Film Festival., recommended that the Volume 60 - Page 188 City of Newport Beach City Council Minutes June 28, 2011 Corona del Mar Chamber of Commerce Christmas Walk be funded at the 60% level resulting in an increase of $6,000, and suggested waiving the fees for the Firefighters Olympics to use the City's recreation facilities. Council Member Rosansky stated that he supports the proposed $15,000 addition to the Newport Beach Film Festival, that the Corona del Mar Chamber of Commerce Christmas Walk be funded at the 60% level resulting in an increase of 56,000, and recommended an additional $10,000 for Restaurant Week. Mayor Pro Tem Gardner stated that she supports the additional $10,000 for Restaurant Week, the Corona del Mar Chamber of Commerce Christmas Walk be funded at the 60% level resulting in an increase of $6,000, stated that she does not support additional funds for the Newport Beach Film Festival, and suggested that an additional $5,000 be allocated for the Race for the Cure event. Council Member Daigle stated that she supports the additional $5,000 for the Race for the Cure event and that Corona del Mar Chamber of Commerce Christmas Walk be funded at the 60% level resiAting in an increase of $6,000. Council Member Hill stated that he supports the proposed $15,000 addition to the Newport Beach Film Festival, the additional S10,000 for Restaurant Week, that the Corona del Mar Chamber of Commerce Christmas Walk be funded at the 60% level resulting in an increase of $6,000, taking the Firefighters Association off the books and allow the event, and suggested that an additional $6,000 be allocated for the Race for the Cure event. Mayor Henn stated that he is in favor of the process that has been set up and suggested that Council increase the amount of total funding by $50,000 and spread it across the board in accordance with the SEAC recommendations. City Manager Kiff clarified that the net changes totaled approximately $31,000 with an incremental increase of $15,000 for the Newport Beach Film Festival; $6,000 for Corona del Mar Chamber of Commerce; $10,000 for Restaurant Week; $6,000 for Race for the Cure; and a fee waiver for the Firefighters Olympics resulting in a deduction of $6,400. Motion by Council Member Curry, seconded by Council Member Rosansky to approve the Special Event Support funding levels for FY 12 and authorize staff to execute agreements with each event organizer, including the following incremental increase amendments of $15,000 for the Newport Beach Film Festival; $6,000 for Corona del Mar Chamber of Commerce; $10,000 for Restaurant Week; $6,000 for Race for the Cure; and a fee waiver for the Firefighters Olympics resulting in a deduction of $6,400. City Manager Kiff also requested that Council add to the motion and give him the authorization to waive the following one-time special event permits for small entities that do not involve any impacts to the City: Western Roundup by Newport Harbor Elks Club; House of Design by Philharmonic Society of Orange County; Bay -to -Bay Bike Tour by Orange County's National Multiple Sclerosis Society; Lido Isle Garage Sale; Old Glory 4"' of July Boat Parade by American Legion Post 291; Flag Day by Newport Harbor Elks Club; the Field of Honor Flag Event by the Exchange Club of Newport Harbor; Earth Day in Orange County; and the Art in the Park Festival. Council Member Curry agreed to amend his motion to include the authorization for the City Manager to waive the one-time special event permits for the aforementioned one -day events. Council Member Rosansky agreed to the add-ons. Mayor Henn requested to include the 1/1 Marine Beach Challenge one -day event to the list of Volume 60 - Page 189 City of Newport Beach City Council Minutes June 28, 2011 fee waivers. Council Member Curry also agreed with this addition. Amended motion by Council Member Curry, seconded by Council Member Rosansky to a) approve the Special Event Support funding levels for FY 12 and authorize staff to execute agreements with each event organizer with the following amendments: incremental increase amendments of $15,000 for the Newport Beach Film Festival, $6,000 for Corona del Mar Chamber of Commerce, $10,000 for Restaurant Week, $6,000 for Race for the Cure; b) authorize a fee waiver for the Firefighters Olympics resulting in a deduction of $6,400; and c) authorize the City Manager to waive the one-time special event permits for Western Roundup by Newport Harbor Elks Club, House of Design by Philharmonic Society of Orange County, Bay -to -Bay Bike Tour by Orange County's National Multiple Sclerosis Society, Lido Isle Garage Sale, Old Glory 4"' of July Boat Parade by American Legion Post 291, Flag Day by Newport Harbor Elks Club, the Field of Honor Flag Event by the Exchange Club of Newport Harbor, Earth Day in Orange County, the Art in the Park Festival, and the 1/1 Marine Beach Challenge. The amended motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Council Member Selich, Council Member Curry, Council Member Daigle Noes: Mayor Henn XVI. PUBLIC HEARINGS - Continued 21. RESOLUTION NO. 2011-54: FISCAL YEAR 2011-12 BUDGET ADOPTION. [100- 20111 City Manager Kiff stated that the following were changes to the budget checklist since it was last presented: 1) Administrative Services — change one Budget Analyst to one Budget Fellow (shared with City Attorney and Recreation); 2) Fire Department - change Budget Analyst to Administrative Analyst (lower level); 3) Police Department — credit 60% of Lifeguard Officer budget for funding of drug abuse prevention program; and 4) Public Works Department — agreement with City of Mission Viejo related to Southern California Edison Rule 20A Credits. Mayor Pro Tem Gardner made a motion, seconded by Council Member Curry to approve the budget checklist, as amended. In response to questions from Council, City Manager Riff clarified that the added Assistant Fire Chief position will pay the full 9% EPMC under the Lifeguard Management Association (LMA) agreement, but noted that the Assistant Police Chief position has not been negotiated yet. He recommended that the Assistant Police Chief Position be subject to whatever changes are applicable to any member of the management team when those changes are negotiated in about six months. Council Member Selich asked whether approval of this item includes the expanded description of Capital Improvements Program (CIP) Project 9 - Balboa Island. Mayor Henn opened the public hearing. Jim Mosher expressed his concerns regarding Council compensation in reference to the proposed budget and City Charter. Josh Yocum, representing the Association of Newport Beach Ocean Lifeguards (ANBOL), spoke regarding the restructure of the Lifeguard Division within the budget, thanked Council and City Management for their persistence and creativity, and thanked the part-time lifeguards for their humility and perseverance in staying true to their jobs during these trying times. Volume 60 - Page 190 City of Newport Beach City Council Minutes June 28, 2011 Hearing no further testimony, Mayor Henn closed the public hearing. In response to a public comment regarding Council compensation, Budget Manager Giangrande stated that City Attorney Hunt's recommendations for Council compensation have been incorporated into the budget. She also clarified that the City made cuts, but that due to an increase in PERS costs, the net effect of the cuts was a reduction of the amount of increase which would have otherwise been suffered. Motion by Mayor Pro Tem Gardner, seconded by Council Member Curry to approve the Budget Checklist, as amended. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle Mayor Henn encouraged the City Manager and staff to engage in a more sophisticated level of budget analysis across the board to prepare for next year's budget, including consideration of outsourcing alternatives for all departments. he then suggested a number of specific areas that might be considered. Council Member Daigle and Council Member Curry generally supported the Mayor's comments, and made comments regarding exploring the costs associated with lay-offs, cost-saving coordination with Costa Mesa, adding to the reserves, City leadership, and maintaining a fiscally -sound City. Motion by Mayor Pro Tem Gardner, seconded by Council Member Curry to adopt Resolution No. 2011-54 adopting the City Manager's Proposed Fiscal Year 2011-12 Budget as amended by the Budget Checklist. The motion carried by the following roll call vote: Ayes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Mayor Henn, Council Member Selich, Council Member Curry, Council Member Daigle XVII. CURRENT BUSINESS - Continued 23. APPOINTMENTS TO BOARDS AND COMMISSIONS. [100-2011) City Clerk Brown announced that, pursuant to Council Policy A-2, the ad hoc appointments committee nominated two people to the Harbor Commission; however, following nominations, Chandler Bell withdrew his application from consideration. She also noted that three EQAC members are being considered for appointment and that Council would need to vote on whether they are allowed to serve on more than one Board, Commission, or Committee. City Clerk Brown read the ballot votes for the Board of Library Trustees as follows: Gloria Alkire (Daigle, Gardner) Jill Johnson -Tucker (Hill, Rosansky, Selich, Curry, Daigle, Gardner, Mayor Henn) Eleanor Palk (Hill, Rosansky, Selich, Curry, Mayor Henn) City Clerk Brown announced that Jill Johnson -Tucker and Eleanor Palk are appointed to the Board of Library Trustees for a four-year term. City Clerk Brown read the ballot votes for the Building and Fire Board of Appeals as follows: Volume 60 - Page 191 City of Newport Beach City Council Minutes June 28, 2011 James Anderson (Hill, Gardner, Selich, Curry, Daigle) William (Bill) Dildine (Rosansky, Mayor Henn) City Clerk Brown announced that James Anderson is appointed to the Building and Fire Board of Appeals for a four-year term. City Clerk Brown read the ballot votes for the City Arts Commission as follows: Arlene Greer (Hill, Rosansky, Gardner, Selich, Curry, Daigle) Michaell Magrutsche (Henn) City Clerk Brown announced that Arlene Greer is appointed to the City Arts Commission for a four-year term. City Cleric Brown read the ballot votes for the Civil Service Board as follows: Hugh Logan (Hill, Rosansky, Gardner, Selich Curry, Daigle, Mayor Henn) City Clerk Brown announced that Hugh Logan is reappointed to the Civil Service Board for a four-year term. City Clerk Brown read the ballot votes for the Harbor Commission as follows: William Avery (Hill, Rosansky, Gardner, Selich Curry, Daigle, Mayor Henn) City Clerk Brown announced that William Avery is appointed to the Harbor Commission for a four-year term. City Clerk Brown read the ballot votes for the Parks, Beaches & Recreation Commission as follows: Roy Englebrecht (Hill, Rosansky, Selich, Curry, Daigle, Mayor Henn) William Hossfeld (Selich) Fred Stefany (Gardner, Mayor Henn) Jack Tingley (Hill, Rosansky, Gardner, Curry, Daigle) City Clerk Brown announced that Roy Englebrecht and Jack Tingley are appointed to the Parks, Beaches and Recreation Commission for a four-year term. City Clerk Brown read the ballot votes for the Planning Commission as follows: Steven Coyne (Selich, Daigle, Mayor Henn) Kory Kramer (Hill, Rosansky, Gardner, Selich, Curry, Daigle, Mayor Henn) Jay Myers (Hill, Rosansky, Curry) Charles Rotkin (Gardner) City Clerk Brown announced that Kory Kramer is appointed to the Planning Commission for a four-year term, but noted that a second vote would be needed between Steven Coyne and Jay Myers to determine the second appointment. Steven Coyne (Selich, Mayor Henn) Jay Myers (Hill, Rosansky, Gardner, Curry, Daigle) Volume 60 - Page 192 City of Newport Beach City Council Minutes June 28, 2011 City Clerk Brown announced that Jay Myers is appointed to the Planning Commission for a four-year term. Jim Mosher expressed concern about waiving Council Policy A-2. Motion by Council Member Rosansky, seconded by Council Member Cur ry to waive Council Policy A -2's limitation on persons serving on more than one standing City Board, Commission or Committee. The motion failed by the following roll call vote: Ayes: Mayor Henn, Council Member Curry Noes: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Gardner, Council Member Selich, Council Member Daigle XVIII. MOTION FOR RECONSIDERATION -None XIX. ADJOURNMENT -Adjourned at 11:10 p.m. in memory of Joe Collins The agenda and supplemental agenda for the Regular Meeting was posted on June 24, 2011, at 8:10 a.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording S retary 4me_� Mayor v z - - OA�'- City Clerk Volume 60 - Page 193