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HomeMy WebLinkAbout02/13/1989 - Regular MeetingCOUNCIL MEMBERS '® �� y� ,aA a � to *ent x x Motion All Ayes Motion All Ayes 0 Motion All Ayes CITY OF NEWPORT BEACH x x x x x x x x REGULAR COUNCIL MEETING PLACE: Council Chambers TIME: 7:30 P.M. DATE: February 13, 1989 Mayor Strauss and members of the City's Sister City Committee welcomed representatives from Okazaki, Japan, Sister City to Newport Beach. A. ROLL CALL. MINUTES B. Reading of Minutes of Meeting of January 23, 1989, were waived, approved as written, and ordered filed. C. Reading in full of all ordinances and resolutions under consideration, was waived, and City Clerk was directed to read by titles only. D. HEARINGS: 1. Mayor Strauss opened the public hearing regarding proposed ORDINANCE NO. 89 -5, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING AN AMENDMENT TO DISTRICTING MAPS NO. 51 AND 52, RECLASSIFYING PROPERTY KNOWN AS "UPPER BUCK GULLY" FROM THE R -1 -B DISTRICT TO THE 0 -S(P) DISTRICT (PLANNING COMMISSION AMENDMENT NO. 6731, was presented for second reading with report from Planning Department. Dave Dmohowski of The Irvine Company, property owner for the subject application, addressed the Council and stated that they were in agreement with the staff's recommendation and proposed ordinance, and will work with staff towards the ultimate dedication of the property to an appropriate public agency subsequent to the rezoning. Hearing no one else wishing to address the Council, the public hearing was closed. Motion was made to adopt Ordinance No. 89 -5, amending Districting Maps No. 51 and 52, reclassifying property known as "Upper Buck Gully" from the R -1 -B District to the 0 -S(P) District. Ord 89 -5 Distr Mps 51/52 Upr Buck Gully Zoning (94) PCA 673 2. Mayor Strauss opened the public hearing Variance and City Council review of VARIANCE NO. 1148 1148, a request of HASEKO, INC., c/o Haseko, Inc. Picker and Ruffing Architects, Newport (91) Beach, approved by the Planning Commission on January 5, 1989, to permit Volume 43 - Page 30 • • 1/ 11 u CITY OF NEWPORT BEACH MINUTES y9� nom A e0_0 A February 13, 1989 the construction of alterations and additions to an existing building which exceeds the basic 26 ft. height limit in the 26/35 Foot Height Limitation District. Said alterations include the construction of a 9 -foot high screen atop the existing 71 -foot high roof for the purpose of screening mechanical equipment. Also included is a request for an exception to the Sign Code in order to permit the installation of two roof signs on the newly constructed screening, and a modification to the Zoning Code so as to permit the daytime use of valet parking in addition to the existing nighttime use of valet parking and the use of an increased number of tandem parking spaces for a portion of the required parking. Property located at 3127 West Coast Highway between Newport Boulevard and Riverside Avenue, in Mariners Mile; zoned SP -5. Report from the Planning Department, was presented. The City Clerk advised that after the agenda was printed, three letters were received regarding the proposed variance from Mr. and Mrs. Leo Roth, Newport Heights Community Association and Dr. Jan D. Vandersloot. William D. Ficker, Architect representing applicant, addressed the Council and reviewed the request, noting that it is their intention to refurbish the subject building to a "first class" structure with "first class" tenants. They will also upgrade the landscaping and marina. With regard to the air - conditioning and electrical machinery on top of the building, they will screen as much of the equipment as practical. He gave a slide presentation depicting the building from various areas of Cliff Drive Park, Ensign View Park, and the vicinity of Santa Ana Avenue and Cliff Drive. He displayed a comparison of the existing and proposed structure and stated the refurbished building will be less "bulky" looking than at present. He also discussed the proposed landscaping surrounding the building, the proposed bicycle trail and sidewalk adjacent to the property and the widening of the Arches bridge. With respect to a pumpout station, he stated that a pumpout facility will be installed at the gas dock in the marina. Volume 43 - Page 31 Variance 1148 Haseko, Inc. • 0 CITY OF NEWPORT BEACH aP v 0 N GeAN February 13, 1989 Mr. Ficker responded to Council inquiry concerning the parapet around the existing rooftop equipment and stated, that if the air- conditioning and electrical machinery was removed from the roof, the cost would be between $250,000 and $350,000 as air handling units would be required on each floor, which would also reduce the amount of space available for rent, thereby causing loss in revenue. If the . equipment was relocated on the ground, it would also be very expensive. He stated that if all the equipment was removed from the roof, the six foot parapet wall will still remain around the building. MINUTES Dr. Jan Vandersloot, 2221 16th Street, addressed the Council and referenced his letter of February 12, 1989, wherein he recommended that: 1) the parapet wall and mechanical equipment be removed from the roof of the building; and 2) the Sign Code be upheld and the request for two roof signs be denied. He felt, however, that the request for modification to the Zoning Code to allow the use of daytime valet parking and the use of increased number of tandem parking spaces for a portion of the required parking be allowed. Dr. Vandersloot gave a slide presentation indicating he felt the ocean and Catalina views are impaired by the parapet wall and the equipment projecting above the wall. He stated that if the parapet wall and equipment are removed from the roof, there will be a dramatic improvement of the view as the ocean view over the building is restored, and the equipment no longer impacts the view of Catalina. He noted that for the past 20 -plus years, the equipment on top of the roof has violated the original 1967 Planning Commission conditions of approval, as set forth in more detail in his letter. In addition, the original conditions of approval in 1967 specified that "all signs on the premises shall comply with the Sign Code and there shall be no signs displayed above the roof of the first story of the building." He discussed the economics of removing the equipment and loss of rental space as referenced by Mr. Picker, and in conclusion, stated that over the past several years, there has been progressive loss of water views from Volume 43 - Page 32 Variance 1148 Haseko, Inc. CITY OF NEWPORT BEACH �P y�� PO A a �O16►cS A February 13, 1989 MINUTES Cliff Drive Park, as Mariner's Mile has been extensively redeveloped. The present project gives the City a chance to improve the view dramatically while • still permitting some intensification of use, as reflected in the request for nonconforming parking arrangements and marina. Dr. Vandersloot submitted a petition containing 34 signatures requesting the removal of the rooftop equipment from the Tokai Bank building and to uphold the City's Sign Ordinance. In response to Council inquiry, the City Attorney advised that the building currently exceeds the height limit that was imposed after its construction. The Municipal Code gives the Council the power to impose as conditions of approval to the variance, such conditions as deemed necessary to insure that all the purposes of the Zoning Ordinance are protected and complied with. He stated that those conditions have to be "reasonable," and in this particular instance, reasonably related to the excess height. In terms of • requiring relocation of equipment which could cost between $250,000 and $350,000, the power to require that condition has to be measured as to whether the City Council considers that to be a reasonable condition to satisfy the provisions of the Zoning Code. With regard to the request for exception to the Sign Ordinance, Bill Laycock, Current Planning Manager, advised that the Sign Code does provide roof signs to be approved, subject to approval of an exception permit. The exception permit procedure has been used for other roof signs throughout the City and is something that can or cannot be approved by the City Council. With regard to removal of rooftop equipment and alleged past violations; the City Attorney stated that, in his opinion, after 22 years of City knowledge of the nature of the violation, the City would have a very difficult time convincing a superior • court judge to require the property owner to remove the mechanical equipment from the roof or reduce it in height. Volume 43 - Page 33 Variance 1148 Haseko, Inc. • .0 CJ CITY OF NEWPORT BEACH MINUTES \C9 .js Co-o 0February 13, 1989 Jim Clarkson, 237 Santa Ana Avenue, addressed the Council and stated he is in support of remodeling the Tokai Bank building, but is opposed to 9 feet of rooftop equipment, and suggested this hearing be continued in order to review alternative locations. Gail Demmer, 2812 Cliff Drive, President of Newport Heights Community Association, addressed the Council and referenced her letter of February 13, 1989. She stated it was their recommendation to deny the variance or to include the removal of all rooftop equipment; and further, to deny the request for an exception to the Sign Code in order to remove signs from the top floor. She stated they believe the applicant's statements of support for granting the variance to increase height are invalid for the reasons as enumerated in their letter. They also felt that while the applicant should not be penalized for prior mistakes, he should also not benefit by prior mistakes. However, they are supportive of beautification, modifications and changes that are inevitable for the growth of Mariners Mile. Nancy Chocek, 233 Santa Ana Avenue, addressed the Council and stated she was in favor of the proposed remodel, but only to the extent as outlined by Dr. Vandersloot, and recommended delay of final decision before allowing the applicant to exceed the height limit. Hearing no others wishing to address the Council, the public hearing was closed. Discussion ensued, wherein Council Member Hart stated that in all the years she has been on the Council, she has never heard any comments about the equipment on the roof until this variance was requested, and indicated she did not feel it was "reasonable" to request that the equipment be relocated to another floor with the cost being so high. She stated she also inquired as to the density of the subject building and what type of square footage would be allowed if it is constructed in the present, and was informed that the building calculates at less than .4 x buildable, and therefore, it could be a larger structure. Volume 43 - Page 34 Variance 1148 Haseko, Inc. COUNCIL MEMBERS G�$� 0 G�� �G��A L CALL F 0� N� Motion • Motion Is • x CITY OF NEWPORT BEACH X MINUTES February 13, 1989 In view of the foregoing, motion was Variance made to sustain the decision of the 1148 Planning Commission, but deny exception Haseko, Inc. to Sign Ordinance, which would place the sign in the area of the first floor. Council Member Watt directed a question to Mr. Picker regarding the air - conditioning equipment, and therefore, the public hearing was reopened. Mr. Picker stated that if the electrical and mechanical equipment was moved into the top floor, he felt it would not be a practical solution; however, he stated anything can be done at any cost. He also stated that structurally the floors in the building are not reinforced to handle this type of equipment as is the rooftop. Council Member Watt indicated she felt that due to the development in Mariner's Mile the past few years, the impact on the residents in Newport Heights has been substantial, and she felt that granting any additional height would be detrimental to the general welfare of the residents in the area. She, therefore, made a substitute motion to deny the variance, not allow any increase in height as requested, and that the exception to the Sign Ordinance for two roof signs be denied. Council Member Cox expressed his reasons for opposing the substitute motion, indicating he felt the impact will be much less than exists at present, and therefore, he will support the original motion made by Council Member Hart. Council Member Sansone reported that in driving on Cliff Drive and viewing photographs taken in the Newport Heights area, he noticed that the trees and bushes are blocking more of the view than the building itself. Council Member Turner stated he would be opposing the substitute motion, and supporting Council Member Hart's motion; however, he did have a concern regarding the lowering of the sign, to which Mr. Ficker stated that, if their request is approved, it is their desire to hang the sign on the railing which is on the roof. Volume 43 - Page 35 Ayes 0 CITY OF NEWPORT BEACH C0 00 'p► February 13, 1989 x I X I x I X I x I x I X Ayes Noes I x I x Ix I x l x l x l x • MINUTES Hearing no further comments, the hearing was closed. The substitute motion was voted on and FAILED. The motion on the floor was restated as follows: Approve Variance 1148 and the modification for tandem spaces and valet parking, as well as the denial to the exception to the Sign Code, accompanied by Findings 1 through 4 in Exhibit "A," and findings 4 through 6 in Exhibit nB " In addition, the following finding be added: Finding 8: Roof level signage currently affixed to the building tends to focus attention on the visual obstructions resulting from the existing parapet and mechanical equipment, and removal of roof or upper level signage supports the conclusion that the proposed revisions will reduce the visual bulk of the structure. Further, the conditions of approval are those specified in Exhibit "A," however, Condition No. 5 should be amended to read as follows: Condition 5: Notwithstanding the provisions of Use Permit No. 1302, all signs shall be installed at or below the top of the first floor of the building and all signs must strictly conform to Title 20 of the Newport Beach Municipal Code. The motion, as restated above was voted on and carried. E. PUBLIC COMMENTS: 1. Ronald Rarick, 890 W. 15th Street, representing Seacliffe Mobile Home residents, addressed the Council and submitted a prepared statement summarizing the problems they have encountered with the property owner of the mobile home park. He stated that last year they were without gas for almost two months, and that on February 1, a $60 per coach increase went into effect. This raises the Volume 43 - Page 36 Variance 1148 Haseko, Inc. Seacliffe Mobile Home ROLL • • Motion 0 Ayes CITY OF NEWPORT BEACH \Ct0V1\!k* February 13, 1989 x MINUTES average space rental to $535. They also do not have use of the pool and Jacuzzi six months out of the year. Be stated it is their request the City Council establish an impartial arbitration committee to handle special situations such as theirs. It was indicated by Mayor Strauss that the City Council is not in the position to arbitrate this issue, inasmuch as it is a matter between the property owner and the tenant; however, he was appreciative of the information being brought to their attention, and he would discuss it further with the City Manager and City Attorney. 2. Patty Rowan, representing Laguna Beach Specia Chamber of Commerce, addressed the Event Council regarding a fund - raising project Permit that has been held in the City of Laguna Beach for the past 24 years. She stated they have plans for a 30 -mile bicycle ride this weekend through a portion of the City of Newport Beach, but were notified on February 3 that their request was denied; and because they were not aware of the denial until that date, they proceeded with their marketing plan and distributed 2,000 posters, 150,000 entry forms, and published four quarter -page ads in the Los Angeles Times. She also stated that the City of Irvine has never denied them participation through their City. She added that as a result of the lateness of the February 3 notification to schedule the item for this agenda, she is before the Council as a last alternative. The City Manager advised that both the Licensing Division and Police Department recommended denial of this event due to the number of bicyclists involved, problems experienced in the past as to failure to comply with stop signs, traffic signals, etc., however, if Ms. Rowan would contact his office he will review the request further. F. CONSENT CALENDAR: The following actions were taken as indicated, except for those items removed. 1. ORDINANCES FOR INTRODUCTION - Pass to second reading on February 27, 1989: (a) Proposed ORDINANCE NO. 89 -6, being, Ord 89 -6 Bus /License Volume 43 - Page 37 Entrtmt Estb (27) 0 CITY OF NEWPORT BEACH MINUTES co February 13, 1989 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 5.28.070 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO APPEALS FROM ACTION OF THE CITY MANAGER ON ENTERTAINMENT ESTABLISHMENTS. (Report from Business License Supervisor) (b) Removed from the Consent Calendar. 2. RESOLUTIONS FOR ADOPTION: (a) Resolution No. 89 -6 requesting the Traffic Orange County Transportation Signal /Inter Commission to include TRAFFIC SJoaquin H1 SIGNAL INTERCONNECT PROJECTS ON & Jamboree IRVINE AVENUE, SAN JOAQUIN HILLS Res 89 -6 ROAD, AND JAMBOREE ROAD in the (85) Orange County Transportation Trust Fund Program for Fiscal Year 1989/90. (Report from Public Works /Traffic Engineering Department) 3. CONTRACTS/AGREEMENTS: (a) Removed from the Consent Calendar. (b) Authorize the Mayor and City Clerk to execute cooperative agreement with the County of Orange for LANDSCAPE PROJECT IN TRAFFIC MEDIAN ON IRVINE AVENUE FROM UNIVERSITY TO SANTA ISABELLA. (Report from Parks, Beaches and Recreation Director) C/O Coop Ago Lndscp /Medn Irvine/ University - Santa Isbla C -2738 (38) (c) Authorize,the City Manager to sign Drvwy Clsg a letter of Agreement with Maurice btw PCH/ Turbow for closing of driveway from Snd W1 /Hghld Pacific Coast Highway regarding & Fern St SOUND WALL ADJACENT TO TRAILER PARK C -2739 BETWEEN HIGHLAND STREET AND FERN (38) STREET. (Report from Public Works Department) 4. COMMUNICATIONS - For referral as indicated: (a) To Marine Department for reply, Marine Dpt letter from Bruce A. Bevan, Jr., (51) regarding alleged application for enlargement of slip at One Collins Island. Volume 43 - Page 38 • • 0 yo CITY OF NEWPORT BEACH MEMBERS co A _1� February 13, 1989 MINUTES (b) To Public Works Department for Balboa Pnsla response, letter dated January 24, Seawl /Is Av 1989 from Dora Nell Hedrick to Adms St regarding BALBOA PENINSULA C -2662 SEAWALL - ISLAND AVENUE TO ADAMS (38) STREET (CONTRACT NO. 2662). (c) To Planning Department for Planning inclusion in the records, letter (68) from Bruce M. Holloman expressing denial regarding request from Kirby and Patricia Galt of 120 Coral Avenue, Balboa Island, who have applied for a MODIFICATION OF THE ZONING ORDINANCE. (d) To Public Works for inclusion in PW the records, petition signed by (74) June Lee O'Connor protesting funding "public improvements" needed at the MCFADDEN SQUARE PLAZA by SPECIAL ASSESSMENT imposed on property owners; and letter from Balboa Peninsula Point Association expressing approval of the establishment of the proposed assessment district. (e) To Public Works Department for PW response, letter from Camilla (74) Wallis regarding FURTHER GEOLOGIC EVALUATION OF 2919 CLIFF DRIVE AREA. (f) To Planning Department /Code Planning Enforcement, letter of thanks from (68) Thomas L. Herron of 238 Cedar Street, regarding ZONING CODE VIOLATION. (g) To Marine Department for response, Marine Dpt suggestions from Richard Lawrence (51) Ralls regarding program to cleanup, the California waters by usittg Newport Beach as an example. (h) To Building Department for reply, Building letter from Jerry Wills of Classic (26) Roofing Company, regarding BUILDING CODE requirement for roofing inspections. (i) To Public Works /Traffic Engineering PW, /Traffic for reply, letter from Warren E. Engr Clendening regarding BALBOA ISLAND (85) PREFERENTIAL PARKING PROPOSAL. Volume 43 - Page 39 • is CITY OF NEWPORT BEACH MINUTES February 13, 1989 (j) To Traffic Affairs Committee for TAC inclusion in the records, letter (85) from Bill Bennett expressing objection to placement of SPEED HUMPS /BUMPS in his neighborhood of 226 Lugonia. (k) To Planning Department for Planning response, letter from Gene (68) Birkeland regarding incident with CITY VEHICLE #2705 on January 25, 1989, at 2:00 p.m., while driving on 17th and Westcliff. (Attached) (1) To Environmental Coordinator for response, letter from Laura B. Kellogg regarding LITTER of bottles, as well as papers on the beaches. Environment- al Quality (24) (m) To Parks, Beaches and Recreation PB &R Commission for response, letter (62) from Dan Rabun suggesting an architectural change to the recreation building at BONITA CREEK PARK. (n) To Traffic Affairs Committee for TAC response, letter from Deborah E. (85) Allen, Chairman of Corona Del Mar Residents Association requesting that the City ask CalTrans to study the possibility of RELOCATING TRAFFIC LIGHT AT POPPY STREET TO ORCHID STREET. (o) To Environmental Coordinator for Environment - response, letters from Milton Klein, al Quality Marueen Klein, Joyce W. Stokes, and (24) Jim Jennings regarding the City's position against THE VILLAGE INN. ALLEGED NOISE DISTURBANCE COMPLAINT. (p) To City Attorney for inclusion in Misc Rqsts/ the records, letter from Ficker & Monorail Sy Ruffing Architects concerning (52) MONORAIL SYSTEM. 5. COMMUNICATIONS - For referral to the City Clerk for inclusion in the records: (a) Copy of letter from Jim and Bettymae Wharton to Parks, Beaches and Recreation regarding VIEW PRESERVATION suggestions by Harbor View Hills Community Association. Volume 43 - Page 40 0 r �J CITY OF NEWPORT BEACH MEMBERS February 13, 1989 (b) Copy of letter from Richard D. Gorris, DDS, regarding HUD GRANTS FOR SENIOR CITIZENS' MEALS and reply from Marilyn L. Ditty, South County Senior Services. 6. CLAIMS FOR DAMAGES - For denial and confirmation of the City Clerk's referral to the claims adjuster: MINUTES (36) (a) James W. Ailes for property Ailes damage /personal injuries, alleging stop sign hidden by tree caused traffic accident at Ruby and Balboa Avenues on November 11, 1988. (b) Carolyn Alden for property damage, Alden alleging contractor doing work for City put holes in seawall to do repairs and did not plug holes at 140 S. Bay Front in March, 1988, thereby causing flooding to subject property. (c) Arthur C. DeMaria alleging damage DeMaria to side of house due to Refuse truck compressing trash and engine oil sprayed two -story side of home at 2520 First Avenue, Corona del Mar, on January 19, 1989. (d) Farmers Insurance Group for Dave Walhood for property damage to claimant's car and tires, allegedly caused by cover left off of manhole by Orange County Sanitation District work crew at Michelson and Carlson, City of Irvine, on October 26, 1988. (d) Barbara Freeman alleging trash container taken with trash from alley behind 519 Jasmine Avenue on December 31, 1988, seeking reimbursement. (e) Vicky Gutierrez for June Gutierrez alleging personal injuries as a result of falling on bleacher steps during Summer Parks, Beaches and Recreation Swim Program at Newport Harbor High School on August 3, 1988. Volume 43 - Page 41 Farmers Ins Grp /Walhood Freeman Gutierrez • ,r 11 u 10 CITY OF NEWPORT BEACH MINUTES w�yCog 9A February 13, 1989 (f) Charles W. Masters alleging damage to property as a result of sewer backup caused by tree roots at 2700 E. Coast Highway on December 8, 1988. (g) Tino Pontrelli for reimbursement, alleging damage to art frames/ paintings, while being hung in Newport Center Library Community Room on January 3, 1989. (h) Rafael Ruiz -Tagle for personal injuries sustained while swimming in ocean at public beach between Balboa Pier /Jetty on August 13, 1988, and as a result the injuries rendered him a quadriplegic. (1) Michael C. Sprague alleging personal injuries as a result of incident which took place at Newport Harbor High School on December 6, 1988, while tightening tension on volleyball net. (j) Sterling Motors seeking indemnity from alleged slip and fall of William Calhoun on public sidewalk on Jamboree Road near Sterling Motors on September 2, 1988. (k) Gregory P. Sullivan's original claim and amended claim alleging he was terminated from his position as law clerk from City Attorney's office, City Hall, on January 9, 1989, without just cause or without notice or hearing. (1) Barry and Debra Zaslav for property damage alleging raw sewage leaked into furnace room and into yard at 432 Serra Drive, due to clogged main City Sewer Line on December 30, 1988. For rejection: (m) LATE claim of Michael J. Schroeder alleging items of personal property unlawfully seized without justifi- cation from his home at 2109 #A Edinger, Santa Ana, on March 19, 1985, by Newport Beach Police Department. Volume 43 - Page 42 ters • • 0 CITY OF NEWPORT BEACH MINUTES 4 O¢ N February 13, 1989 tt� 7. SUMMONS AND COMPLAINTS - For denial and confirmation of the City Clerk's referral to the claims adjuster: (a) Charles H. Walks for personal Walke injuries and damages, Orange County Superior Court, Case No. 579624. Claim was denied by City Council on November 28, 1988. 8. REQUEST TO APPROVE /FILL PERSONNEL VACANCIES: (Report from the City Manager) (a) One Groundsworker I, Parks, Beaches and Recreation Department. (b) Two Police Officers, Police Department. (c) One Computer Operator, Finance Department. (d) One Assistant Planner, Planning Department. (e) One Building Maintenance Worker II, General Services Department. (f) One Senior Equipment Operator, General Services Department. 9. STAFF AND COMMISSION REPORTS - For Council information and filing: (a) Copy of letter to Ernest W. Schroeder from Arts Commission regarding "CHINA HOUSE" Roof Tiles, Decorative Corbels and Roof Beacon. 10. PUBLIC HEARING SCHEDULING - March 13, 1989: (a) Direct staff to use the procedure of Chapter 27 of the Improvement Act of 1911 to complete the CONSTRUCTION OF CURBS AND GUTTERS ON THE EASTERLY SIDE OF BROAD STREET BETWEEN WESTMINSTER AVENUE AND BOLSA AVENUE; and set a public hearing.for 7:30 p.m., March 13, 1989, to hear from anyone who desires the improvements, and /or protests. (Report from Public Works Department) Volume 43 - Page 43 (66) PB &R /China House Tiles (62) PW /Crbs, Gutters/ Broad St btw Westmstx Bolsa (74) CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES . tp 9 ��t+�� ®�� ;'Jj� \%pqp February 13, 1989 ROLL CALL INDEX 11; COUNCIL TRAVEL AUTHORIZATION /EXPENSE Council RECORD - Approve expense record of Expense $540.00 for Council Member Evelyn R. (33) Hart; and Mayor Donald A. Strauss of $560.78, to attend League of California • Cities Meeting in San Jose, January 26 - 27, 1989. 12. SPECIAL EVENT PERMIT NO. 88 -078 - Uphold Permit/ staff's recommendation for approval of Apli #88 -078 temporary street closure at Newport (65) Center Drive on Sunday, February 26, 1989, 7:00 - 11:00 a.m., for Anderson School P.T.A. 5K and 10K "Spirit Run," subject to conditions listed in the staff report. (Report from Business License Supervisor) 13. HARBOR PERMIT APPLICATIONS: Uphold Harbor Per- staff's recommendation for approval of mit Apli the following applications, subject to (51) conditions of approval in the staff reports. (Reports from Marine Department) (a) Removed from the Consent Calendar - Application No. 130 -2686 (b) Application No. 18 -0056 - by Newport Apli #18 - • Dunes to revise the existing commercial docks at the Dunes and 0056 to add additional docks; (c) Application No. 109 -428 - by Newport Apli #109 - Aquatic Center to build a new ramp 428 and float at the Aquatic Center, bayward of 428 North Star Lane. 14. RESUBDIVISION NO. 883 - Approve a Resub 883 subdivision agreement guaranteeing (84) completion of the public improvements required with Resubdivision No. 883 (located at 3235 -3245 Clay Street); and authorize the Mayor and City Clerk to execute the agreement. (Report from Public Works Department) 15. USE PERMIT NO. 3279 - Approve a use U/P 3279 permit agreement guaranteeing completion (88) of the public improvements required with Use Permit No. 3279 (located at 351 Hospital Road); and authorize the Mayor and City Clerk to execute the agreement. (Report from Public Works Department) • Volume 43 - Page 44 C • • CITY OF NEWPORT BEACH .USERS MINUTES 9 y9� �0 a G ;P February 13, 1989 .gyp N INDEX 16. RESUBDIVISIO14 NO. 861 - Approve a Resub 861 subdivision agreement guaranteeing (84) completion of the public improvements required with Resubdivision No. 861 (located at 3841 Ocean Birch Drive); and authorize the Mayor and City Clerk to execute the agreement. (Report from Public Works Department) 17. RESUBDIVISION NO. 824 - Accept the Resub 824 public improvements constructed in (84) conjunction with Resubdivision No. 824; and authorize the City Clerk to release the Faithful Performance Bond (Bond No. 35M69620500) and release the Labor and Material Bond (Bond No. 35M69620500) in six months provided no claims have been filed. (Report from Public Works Department) 18. PERMIT /ENCROACHMENT AGREEMENT - Approve Permit/ encroachment agreement allowing the Encrchm construction of improvements over an (65) existing City sewer easement at 709 Jasmine Avenue; and authorize the Mayor and City Clerk to execute the agreement. (Report from Public Works Department) 19. FUEL TANK REPLACEMENT CONTRACT NO. 2679 Fuel Tank - Accept the work; and authorize the Rplcm City Clerk to file a Notice of C -2679 Completion and release the bonds 35 days (38) after Notice of Completion has been recorded in accordance with applicable portions of the Civil Code. (Report from Public Works Department) 20. BUDGET AMENDMENTS - For approval: (25) (a) BA -039, $450 - Transfer in Budget Appropriations to replace secretary's typewriter; Nondepartmental Fund. (b) Mid -Year Budget Adjustments for the (40) following: (Report from Finance Director) BA -040, $1,080,085 : Increase in Budget Appropriations and Revenue Estimates; General Fund. BA -041, $169,895 - Increase in Budget Appropriations and Revenue Estimates; Park and Recreation Fund. Volume 43 - Page 45 CITY OF NEWPORT BEACH MINUTES o� p� February 13, 1989 BA -042, $189,390 - Net Increase in Unappropriated Surplus (decrease in Budget Appropriations and increase in Revenue Estimates); State Gas Tax Fund 18. BA -043, $60,000 - Net Increase in Unappropriated Surplus (decrease in Budget Appropriations); State Gas Tax Fund 19. BA -044, $99,260 - Decrease in Unappropriated Surplus (decrease in Revenue Estimates); Parking Meter Fund 22. BA -045, $336,815 - Decrease in Unappropriated Surplus (increase in Budget Appropriations and decrease in Revenue Estimates); Tide and Submerged Lands Fund 23. BA -046, $1,025,000 - Decrease in Unappropriated Surplus (decrease in Revenue Estimates); Contributions Fund 23. BA -047, $2,000,000 - Increase in Unappropriated Surplus (increase in Revenue Estimates); Circulation and Transportation Fund 26. BA -048, $1,128,890 - Decrease in Unappropriated Surplus (increase in budget Appropriations and decrease in Revenue Estimates); Water Fund 50. BA -049, $9,960 - Net Decrease in Unappropriated Surplus (increase in Budget Appropriations and Revenue Estimates); Marinapark Fund 52. (c) BA -050 - Removed from the Consent Calendar (refer to agenda item F- 3(a)). G. ITEMS REMOVED FROM THE CONSENT CALENDAR: 1. Proposed ordinance pertaining to restrictions on persons living aboard off -shore moorings, was presented with report from the Harbor Quality Committee. Council Member Turner indicated he felt the purpose of the subject ordinance was to eventually eliminate all live - aboards, and stated he felt, "we are heading in the wrong direction." Volume 43 - Page 46 Ord 89 -7 Live -abrd Ofshr Mrgs (51) ROLL • • CITY OF NEWPORT BEACH MINUTES 00?� �'�{►� February 13, 1989 David Harshbarger, Marine Director, addressed the Council and stated that the Harbor Quality Committee, in discussing this issue, took a 7% figure which translates to 51% live- aboard permits that would be issued, which is basically what other marinas have done with the live- aboard situation from San Diego to Santa Barbara. He also stated that they do not know the exact number of the existing live - aboards; the estimate is 30 to 35, but it could be higher. Council Member Turner asked if the Committee considered "grandfathering" in the existing permits, and not issue any new permits, to which Mr. Harshbarger replied in the affirmative, but stated that the Committee felt that no more than 50 permits should be issued unless there is substantial proof in a 90 -day period that there was more than that existing at the time the ordinance is adopted. The City Attorney stated it was the intent of the Harbor Quality Committee to establish regulations on those persons living aboard to insure their use of vessels, as residences, did not degrade water quality in the bay, and the best method to do that is to put restrictions on the type of vessels that people can live- aboard and establish regulations that require the maintenance of discharge logs. He felt it was the desire of the Committee to "grandfather" in all those persons who are presently living aboard, and if that number exceeds 50, no permits would be issued to persons not currently living aboard. If the number is less, the Committee felt that an appropriate number of live- aboards in the bay, a number that would not have adverse water quality, parking or litter impacts, would be approximately 7% of the number of moorings out in the bay. He advised that the purpose of the waiting list is that there is a possibility that more than 51 permits will be issued based upon persons currently living aboard. The Marine Director pointed out that live - aboard permits are restricted to the current mooring permit holders. Volume 43 - Page 47 Live -abrd Ofshr Mrgs • Motion All Ayes • 1 1 L J x CITY OF !NEWPORT BEACH EMBERS MINUTES i Hof �9A A GtA A February 13, 1989 Lo N INDEX The City Manager advised that the Live -abrd Committee has met with a number of the Ofshr Mrgs off -shore mooring permit owners for the past several months, and that the subject ordinance was prepared as a result of negotiations between the Committee and those permit holders. Following consideration, motion was made to introduce and pass to second reading on February 27, 1989, proposed ORDINANCE NO. 89 -7, as presented, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADDING CHAPTER 17.23 TO THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO RESTRICTIONS ON PERSONS LIVING ABOARD OFF -SHORE MOORINGS. 2. Report from Public Works Department McFdn Sq regarding the MCFADDEN SQUARE ASSESSMENT Asmt Dist 59 DISTRICT NO. 59, was presented. Engr /Lgl Cnsl Agm The City Clerk advised that after the C -2737 agenda was printed, 10 additional (38) protest letters were received from the following: George Dussin, owner of the Old Spaghetti Factory John /Marjorie Shea, 2214 W. Ocean Front Richard Lawrence, 2102 W. Ocean Front i John Kuhta, 119 23rd Street Uberto Autore, 2204 W. Ocean Front Michael Potoma, 114 23rd Street Mary Naegeli, 2206 W. Ocean Front Roy Kouchi, Lot 21 /Block 23 Eileen Rapp, 2108 W. Ocean Front Victor Swanson, 221 21st Street The Public Works Director was asked if there were still enough signatures in favor of the assessment district to proceed, to which he advised that as of this date 58% of the property owners are still in support of the district, and Volume 43 - Page 48 C • Motion • X CITY OF NEWPORT BEACH MINUTES 4 o� 9� �e�'��'4 February 13, 1989 that if an exact figure is desired, this item can be referred back to the staff for recalculation of the petitions and placed on the February 27 agenda. John Shea, 2214 W. Ocean Front, addressed the Council in opposition to the project, indicating he felt the City has been negligent in maintaining the area, and that the cost of replacement improvements should be borne by the City and not assessed to the property owners in the area. He stated that the public plaza is for everyone and individual property owners should not be taxed. He also felt that the large amount of 11concrete" area near Newport Pier should be replaced due to deterioration. Sid Soffer, 900 Arbor Street, Costa Mesa, owner of property at 107 W. 21st Place in McFadden Square, addressed the Council in opposition to the proposed assessment district. He also submitted a protest letter from Harry K. Yee, 112 22nd Street. He stated it was his understanding that the purpose of the assessment district was for a "special" treatment of sidewalk, street lights, and trees, which is over and above the improvements the City intends to make in the area, i.e., curb, gutter, streets and sidewalk. He indicated he felt the additional improvements should be paid for out of the City's off - street parking fund. He also noted that McFadden Square area was designated as a "blighted" area some 30 years ago, and in his opinion, the area has not improved that much. Hearing no further comments, motion was made to refer this item back to the staff to determine exact amount of property owners opposing the assessment district with report back on February 27. In response to comments made by Mayor Pro Tem Plummer, the Public Works Director gave a brief description of the proposal, noting that the City has committed to, and intends to spend in upgrading the area, approximately one -half million dollars in sidewalk, curb and street repairs. It is also proposed to spend another one -half million dollars to replace the restroom, and $300,000 for plaza improvements. Volume 43 - Page 49 McFdn Sq Asmt Dist 59 COUNCIL • All Ayes • CITY OF NEWPORT BEACH MINUTES February 13, 1989 The Public Works Director added that the assessment district proposal is for decorative sidewalk above and beyond normal sidewalk replacement, and the district would be credited with any sidewalk repairs of a conventional type that would have otherwise been necessary, thus reducing the cost of the decorative sidewalk to the district. Secondly, the district proposes the installation of new street lights, which is normally anywhere in the City the responsibility of the adjacent properties. Thirdly, the district proposes to increase the amount and magnitude of the architectural and landscaping improvements in the plaza above and beyond the level proposed by the City. In response to question raised by Council Member Watt regarding a gated parking lot at McFadden Square as referenced in the Ruder Study, the City Manager indicated this subject had been considered by the Council, and if it was their desire, the issue could be reviewed again, and considered independently from the assessment district. Bill Schonlau, 408 -A E. Ocean Front, addressed the Council and stated that petitions were circulated on three items to property owners within the proposed assessment district, i.e., decorative sidewalks, decorative street lights, and plaza improvements, and subtracting the amount of protests received, he felt there was still sufficient signatures favoring the district.in order to proceed. He also noted that the Balboa Peninsula Point Association, West Newport Beach Association, Central Newport Beach Association, and Newport Harbor Area Chamber of Commerce have endorsed the proposed assessment district. Hearing no additional comments, the motion on the floor was voted on and carried. 3. Report from the Marine Department recommending approval, subject to conditions in the staff report, of Harbor Permit Application No. 130 -2686 by Robert Cohen to revise the residential pier and float bayward of 2686 Bayshore Drive, was presented. Volume 43 - Page 50 Sq Dist 59 Harbor Perm Apli#130- 2686 /Cohen (51) L • Motion All Ayes :7 Won CITY OF NEWPORT BEACH 0 � y9� G� L ''� C'040 A February 13, 1989 x x MINUTES Frank Celiberti, 2692 Bayshore Drive, addressed the Council and spoke against granting the subject permit. He stated that his home is adjacent to the property in question and if the pier is revised to accommodate a 125' yacht., as requested, it will obstruct his view and open space, and decrease his property value. He felt that because of the size of the vessel, it could cause a serious problem if unpredictable winds occur and cause the yacht to break from the pier. Following consideration, motion was made to refer this item to the Tidelands Affairs Committee for review and report back. H. ORDINANCES FOR ADOPTION: 1. Proposed ORDINANCE NO. 88 -47, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 12.44.125, COMMERCIAL IN LIEU PARKING FEES, was presented for second reading with report from the Planning Department. The City Manager stated that the subject ordinance comes as a recommendation from the Off- Street Parking Committee and was revised at the last City Council meeting, wherein the language was revised in Item B -3, and also.the fee for 1989 was changed from $225 to $150. Mayor Pro Tem Plummer, member of the Off- Street Parking Committee, suggested this item be tabled for the time being as there are provisions in the ordinance that she and Council Member Turner (also a member of the subject Committee) do not agree on. She stated new information has been given the Committee recently, and had the Committee received this information earlier, their recommendation may have been different. She also felt the Specific Area Plan for Central Balboa needs to be completed before the Committee can accurately assess the parking situation in the area. In view of the foregoing, motion was made to table this item at the present time, and direct staff to make as a first priority, the completion of the Specific Area Plan for Central Balboa Volume 43 - Page 51 Ord 88 -47 Cmcl In Lieu Pkg Fees (40) All Ayes • Motion All Ayes • CITY Of NEWPORT BEACH MINUTES o� \G� A February 13, 1989 X area, so that the Committee can review it by the end of Summer. Council Member Turner amended the motion to include a request for a resolution at the next meeting placing a "freeze" on the issuance of any additional in lieu parking permits until this matter is resolved, to which Mayor Pro Tem Plummer had no objections. Council Member Hart also requested that staff report back as to the number of in lieu parking fees which have not yet been paid. The motion, as amended, was voted on and carried. 2. Proposed ORDINANCE NO. 89 -3, being, Ord 89 -3 Zoning /Off- AN ORDINANCE OF THE CITY COUNCIL OF St Pkg Fee THE CITY OF NEWPORT BEACH ADDING Z -Distr SECTION 20.30.040 C.(5) TO THE (94) NEWPORT BEACH MUNICIPAL CODE TO ESTABLISH BY RESOLUTION OF THE CITY COUNCIL A FEE FOR PROCESSING REQUESTS FOR OFF- STREET PARKING ON A SEPARATE LOT IN "Z" COMBINING PCA 662 DISTRICTS, 0 3. Proposed ORDINANCE NO. 89 -4, being, Ord 89 -4 Zoning /Off- AN ORDINANCE OF THE CITY COUNCIL OF St Pkg Fee THE CITY OF NEWPORT BEACH ADDING H- Cmb /Distr SECTION 20.30.040 D.(5) TO THE (94) NEWPORT BEACH MUNICIPAL CODE TO ESTABLISH BY RESOLUTION OF THE CITY COUNCIL A FEE FOR PROCESSING REQUESTS FOR OFF - STREET PARKING ON A SEPARATE LOT IN "H" COMBINING PCA 662 DISTRICTS, were presented for second reading and adoption with recycled report from the Planning Department, dated January 23, 1989. Motion was made to adopt Ordinance No. 89 -3; and Ordinance No. 89 -4. I. CONTINUED BUSINESS: 1. Report from City Manager regarding OLYMPIC POOL AGREEMENT, was presented Volume 43 - Page 52 (62) High Olympc Agm COUNCIL MEMBERS Ae ® N Motion C All Ayes Motion All Ayes • x x CITY OF NEWPORT BENCH MINUTES February 13, 1989 The City Manager outlined the three alternatives as enumerated in his report, and following, motion was made by Council Member Turner to approve the agreement with the five changes (initiated by the City) and transmit it to the School District for action. Council Member Hart stated that it is her understanding the School Board would like the opportunity of meeting with Council Members of their choice to review some of their concerns and the City's position. Mayor Strauss recommended the Budget Committee (Council Members Cox and Turner), along with Council Member Sansone meet with members of the School Board and report back as soon as possible. The motion was voted on and carried. 2. BICYCLE TRAILS CITIZENS ADVISORY COMMITTEE: Motion was made to confirm (District 1) Mayor Strauss's appointment of Jim Dalton terminating December 31, 1989. J. CURRENT BUSINESS: 1. Report from Public Works Department regarding PRIVATE ENCROACHMENTS IN PUBLIC RIGHTS -OF -WAYS, was presented. The City Clerk advised that after the agenda was printed, a letter from Nancy Foster, 229 Opal Avenue, Balboa Island, was received withdrawing her application for an encroachment permit and regarding the proposed revised Council Policy L -6. The City Manager advised that the subject policy was prepared in response to Council's request when it considered recently an encroachment regarding a raised patio on Balboa Island. The revised policy does not permit raised patios, and specifies that encroachments of landscaping, etc., be on grade. The Public Works Director reported that the text copy of the policy indicates the proposed deletions and additions, and pointed out that listed under Section A are the categories of encroachments which are prohibited. He Volume 43 - Page 53 BT /CAC Council Policy L -6 Private Encr /Pblc r -o -w (65/69) COUNCIL MEMBERS yea' � � lnfl �tp Motion • CITY OF NEWPORT BEACH x MINUTES February 13, 1989 stated that the changes will clarify the intent of the policy and reduce the number of applications coming before the Council. Discussion ensued, wherein it was noted that the subject policy applies only if the area in question is in the public right -of -way. The Public Works Director, in reviewing the policy, also advised that one category of allowable encroachment was added, designated as D -2, which pertains to fences on South and North Bay Fronts on Balboa Island. He stated the Balboa Island Improvement Association has also written a letter dated January 17, 1989, expressing the Association's views with regard to encroachments on the Island and what they felt should be included in the policy, to which he responded. Council Member Watt indicated the proposed policy change was an acceptable method in dealing with the situation, but she felt there were still a few issues of concern raised by Nancy Foster in her letter of February 9, 1989, that the Council may wish to consider. Reference was made to the Balboa Island Improvement Association policy regarding this issue, wherein the Public Works Director advised that in the case of 6 -foot parkways, no encroachments above grade would be allowed pursuant to the Association's policy, to which the City concurs. In the case of an 8 -foot parkway, the City's policy would allow for an encroachment up to one foot within the right -of -way, not exceeding three feet in height. Also, in areas where there is a large volume of pedestrian traffic, he felt the required 5 -foot sidewalk width should be maintained. In view of the foregoing comments, motion was made to adopt revisions to Council Policy L -6, "Private Encroachments in Public Rights -of- Ways," which will: I. Make it clear that all private structural encroachments in public rights -of -ways are prohibited when said encroachments are permanent to nature and constructed above the natural grade; except: Volume 43 - Page 54 Council Policy L -6 "I � COUNCIL MEMBERS G OA S Co 4 Z� O� �i� g{o February 13, 1989 AI 9 to • All Ayes • MINUTES 1. Exceptions to the general rule specifically listed in the policy. 2. Exceptions permitted by the Building Code. 3. Exceptions to the general rule that will permit fences of open type construction at grade to encroach to within 2' -6„ of the back of the public sidewalk on North Bay Front and South Bay Front. The Public Works Director recommended paragraph "G" of Council Policy L -6 be amended to read as follows: "G. Variances from the strict application of this policy shall not be granted unless individual circumstances establish that approval will be consistent with the public interest." The motion, as amended, was voted on and carried. 2. REQUEST OF HAL AND KATHLEEN BAERG FOR PARKING IN THE ALLEY AT REAR OF 400 CLUBHOUSE AVENUE, was presented. Report from Traffic Affairs Committee, was presented. The City Manager summarized the subject report, noting that the Traffic Affairs Committee had considered this request and recommended denial. The Committee is aware of the parking shortage in the vicinity of 400 Clubhouse Avenue, but believes that the creation of a single space in the alley is an undesirable solution to the problem. Hal Baerg, 400 Clubhouse Avenue, addressed the Council in favor of his request, stating that Clubhouse Avenue dead -ends at the bay, but three homes wrap around and face the bay and the rear of these homes are on the alley; therefore, no street is actually available to them. He stated that his house is one of the few in the City that "does not have a street to go with his address." He discussed the problems he Volume 43 - Page 55 Council Policy L -6 (63) Rqst COUNCIL MEMBERS ® ALL Cy 0 9 Motion All Ayes • • Ix CITY OF NEWPORT BEACH AN MINUTES February 13, 1989 and his guests have had with regard to parking, and asked that the alternatives suggested in his letter of February 3, 1989, be considered. He stated he was requesting the Council to help in solving a very frustrating, expensive and hazardous situation. Council Member Turner expressed empathy to Mr. Baerg, but stated if the request were granted, it could set a precedent for future requests; and therefore, moved to sustain the action of the Traffic Affairs Committee and deny the request. 3. Report from the City Attorney regarding proposed EXTENSION OF THE LEASE OF THE CITY /COUNTY DOCK PROPERTY, was presented. The City Manager referred to a map of the subject parcel, noting the areas owned by the County and those owned by the City. The City receives 35% of the revenue derived from the property and the property is managed by the County. Haseko, Inc., applicant who received approval from the Council earlier in the meeting to remodel the Tokai Bank Building (which sits on said parcel), have requested a 6 -year extension of their lease, which expires June 30, 2008. The request for extension of the lease has raised a question as to the interpretation of the City's Charter, and it is the City Attorney's opinion, that the City Council cannot grant the extension without a vote of the electorate. The City /County lease provides that any lease to a third party: "...shall be for a term not to exceed (50) years, and in any event, shall terminate not later than June 30, 2008.^ John Gamble, Attorney representing the applicant, 18400 Von Karman, Irvine, addressed the Council and stated that in reviewing the findings of the City Attorney, he felt it would also enable the Council to make findings in support of a decision to approve their request, within reason. He noted that the subject City /County lease document is 30 -years old and he felt the intention of the voters in 1958 was to create a Volume 43 - Page 56 0/C City Dock Prpty/ Haseko, Inc. Lease Extnsn C -910 (38) COUNCIL MEMBERS \11\\\00 7Z ypFebruary 13, 1989 0 • Motion All Ayes x MINUTES vehicle to generate income for the City. 0/C City However, he felt that due to the Dock Prpty six -year lapse between 1958 and 1964 when the property was not leased, subject lease to Haseko, Inc., was cut short; and therefore, the economic benefit to the City was also cut short. Mr. Gamble stated that the actual transaction of entering into the lease did not occur until 1964, and he felt the intent of the electorate was for the lease to begin "running" immediately (1958) and not six years later. He also felt that if this issue was to be decided by a judge, the court would favor the lease extension due primarily to the revenue benefit the City would receive for the additional six years. Steve Blanchard, County General Services Real Estate Department, addressed the Council and stated that with respect to "fair market value" of the parcel, they feel the property has been under - utilized, and has fallen into a period of disrepair, which the lessee has now proposed to upgrade. They have also negotiated with the City a rent formula which they feel will result in the City and County receiving fair market value. In response to Council Member Turner's inquiry regarding any prior lease on the subject parcel before 1964, the City Attorney advised that a lease was entered into; however, the lessee did not pay any rent and defaulted with respect to the remaining performance of the lease after efforts to get the County and City to agree to an assignment of the lease. The lease was, therefore, terminated by the City Council and Board of Supervisors in 1961. In view of the foregoing comments, motion was made to deny the request and make the findings for denial, as set forth in Exhibit "C." 4. Report from the City Manager concerning NB Conf/ CONFERENCE AND VISITORS BUREAU, was Visitors Bu presented. C -2638 (38) Newport Center Association letter in support of the Conference and Visitors Bureau, was presented. Volume 43 - Page 57 • Motion • Motion Ll CITY OF NEWPORT BEACH MINUTES 9 y9� O'7�' February 13, 1989 x x The City Clerk reported that after the agenda was printed, 13 additional letters in support of the City Council continuing to fund a marketing program for the Conference and Visitors Bureau, were received and on file. The City Manager advised that this item had been placed on the agenda at the request of the City Council to determine if the "service feet ordinance should be continued. He stated that the City has been collecting a 1% service fee for almost two years which, in turn, is transmitted to the Bureau, minus the City cost of collecting said fee. Council Member Hart stated that she had met with several of the Board members of the Bureau to discuss concerns, and it Is her understanding that there is some "restructuring" going on within the organization; and therefore, she would move to disallow first reading of the proposed ordinance repealing the Visitor's Service Fee at this time, but that this issue be brought back to the City Council on May 8, 1989, for reconsideration along with a report from the Bureau as to their completed budget, plans for fiscal year, goals and past accomplishments. Council Member Cox disagreed with the motion, stating that when this issue was last discussed, it was his thought that the Council was in agreement to "set it straight once and for all" what the future of the Bureau was going to be at this time, rather than continuing the matter again. The Bureau has made their presentation as to their business plan, goals, etc., and if this item is postponed again, this would also defer the trolley issue for another year. He stated he would like the Council to "make up their minds tonight" as to whether it believes in the Bureau or not; and therefore, moved a substitute motion to disallow first reading of the proposed ordinance and permit the Bureau to continue their present operation. Mayor Strauss stated it is felt by many individuals interested in this issue that the trolley should not be part of the Bureau and they should not have that responsibility, particularly since they have no expertise in that area. Volume 43 - Page 58 Conf/ Bu • • r� u ..��MI,' -.j l,' A cf� 9 y9A n0'lt 'p �f February 13, 1989 Council Member Turner stated he will not be supporting the substitute motion, and felt the City could gain by waiting the 90 days as suggested by Council Member Hart; and therefore, review the "complete picture" for the last year. He also felt the Council make a mistake in "saddling11 the Bureau with the responsibility of a workable trolley. Council Member Watt indicated she would not support the substitute motion, but will reluctantly support the original motion, as she felt the Bureau should be more in the context of private enterprise as the visitor's service fee is the wrong type of application of a service fee in that it promotes visitors, instead of "doing what it's supposed to do, which is deferring the cost of serving visitors." Also, she felt the Bureau was an inappropriate agency to handle the trolley issue. In addition, she felt the Council should not be involved in the Bureau's budget and that it should be a private budget the Bureau works out among themselves. Lastly, she felt that in reviewing some of the Bureau's recent publications, it is very clearly spelled out that it is most convenient for the visitor to get to Newport Beach via John Wayne Airport, and until that issue is resolved she felt it was inappropriate to support that type of publicity. Jim Dale, 118 Apolena Avenue, member of the Board of Directors of the Conference and Visitors Bureau, addressed the Council and urged them to vote against the proposed ordinance, stating that in so doing, it would allow the Bureau to continue operating in support of the Newport Beach hospitality industry. He stated this issue was very important to the small businesses in the community; that the Bureau has made great strides in generating new business for the hotels and restaurants in the City; and the Bureau is committed to being more involved in community activities and becoming a more recognized and respected spokesman for the hospitality industry. He summarized some of the Bureau's strengths and accomplishments; noting they are a self- funding organization which collects revenues from an additional 1% assessed by each hotel; and pay the City for that collection cost. The visitor's service fee is in addition to the 8% Transient Occupancy Volume 43 - Page 59 NB Conf/ Visitors Bu Al ROLL • • • f141NUTF`, February 13, 1989 Tax (TOT) which the City keeps entirely for itself, and he pointed out that the revenue received from the TOT has increased 19%. In addition, the Bureau has in just the past six months, booked over one million dollars in future business and are working on an additional five million dollars of business for Newport Beach. Jim Roberts, 1975 Port Locksligh, owner of Balboa Beach Company on Balboa Island, addressed the Council in support of the Bureau, and stated he felt the Council would be remiss in not continuing its support of the Bureau as it creates business for him, as well as other businesses in the community when hotels are occupied. Bill Hamilton, 3620 Fifth Avenue, owner of the Cannery Restaurant and Malarky °s Pub, addressed the Council in favor of the Bureau. He stated he had a great concern for the quality of life in the City; is very "attached" to Newport Beach; active in civic affairs; felt the Bureau was good for the small businessman and would like to see it continue. Phil Tozier, 901 Kings Road, President of Balboa Pavilion Company, addressed the Council in support of the Bureau, stating that the small businesses in the City receive tremendous benefits from hotel guests, and urged the Council to continue its support of the Bureau. Eric Hansen, owner of Little Inn on the Bay, addressed the Council and stated that the Bureau means a great deal to him in his business; that everyone benefits from the visitors, and would urge its contunued support. Jeff Morse, President of the Conference and Visitors Bureau, addressed the Council and stated they have no problem with the 90 —day termination clause; however, it is difficult to motivate a group of people and make plans when it all could end in 90 days. He would hope over the next 90 days they could work with the City in developing a plan the Council would be confortable with and support. Volume 43 — Page 60 NB Conf/ Visitors Bu CITY OF ,NEWPORT BEACH MINUTES S1 0 4 o� y� February 13, 1989 NB Conf/ Visitors Bu Mayor Strauss stated he felt Council Member Hart's motion to continue for 90 days is well considered and he will support it. Council Member Plummer indicated she had mixed emotions with regard to the Bureau, as she was very disappointed with the lack of competance demonstrated by the organization during the last year, specifically the trolley issue, which is a year behind. She expressed her concerns and stated she basically supports the concept, but is not totally in favor of giving "carte blanche" for the next two years. The substitute motion made by Council Member Cox was restated as follows: That the City Council give the Conference and Visitors Bureau a vote of confidence for their "great job" and allow them to continue with their operation. Ayes x The substitute motion was voted on and Noes x x x x x x FAILED. Council Member Plummer stated she felt it would be appropriate to put the • responsibility of the trolley project back into the City's hands at this time. Council Member Cox commented that the Bureau should not be in the trolley business, but was given to the Bureau at the City's request. The objective of the organization is to increase room occupancy of the hotel rooms already existing. He also felt the Bureau should run their operation as they see fit, and the City Council not question how they spend their funds. There being no objections, the trolley issue was placed on the March 13 study session. Ayes x x x x x x The motion, as made by Council Member Noes x Hart, set forth in the foregoing, was voted on and carried. • Volume 43 — Page 61 NB Conf/ Visitors Bu CITY OF NEWPORT BEACH MINUTES t0�yC \�'��� February 13, 1989 Meeting adjourned at 11:35 p.m. The agenda for this meeting was posted on February 9, 1989, at 8:30 A.m., on the City Hall Bulletin Board located outside of the City of.Newport Beach Administration Building. Mayor ATTEST:: City Clerk