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HomeMy WebLinkAbout03/13/1989 - Regular Meetingent x x on Ayes x Abstain x Motion All Ayes 10 Motion All Ayes Motion All Ayes 1• CITY OF NEWPORT BEACH EMBERS REGULAR COUNCIL MEETING O gy PLACE: Council Chambers O i\y9�'A TIME: 7:30 P.M. DATE: March 13, 1989 OW x x x x x x x x x X x X Ix Ix MINUTES Mayor Strauss presented proclamations in recognition of Girl Scout Week, March 6 - 11, 1989; and Red Cross Month, March 1989. A. ROLL CALL. B. Reading of Minutes of Meeting of February 27, 1989, was 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 construction of curbs and gutters on the easterly side of BROAD STREET BETWEEN WESTMINSTER AND BOLSA AVENUES. Report from Public Works Department, was presented. Dr. Jan Vandersloot, 2221 16th Street, addressed the Council in favor of the proposed improvements, and indicated he would also support the same improvements on 16th and Tustin Streets where he resides. In response to the above, Dr. Vandersloot was advised to obtain petitions in support from 50% or more of the property owners on his block. Hearing no others wishing to address the. Council, the public hearing was closed. Motion was made to direct staff to continue with the procedure to construct curbs and gutters. E. PUBLIC COMMENTS: None. F. CONSENT CALENDAR: The following actions were taken as indicated, except for those items removed. 1. ORDINANCES FOR INTRODUCTION: None. Volume 43 - Page 76 Broad St/ Btw Bolas & Westmatr/ Curbs /Gtrs (74) CITY OF NEWPORT BEACH 4 \CP0-0A\A* 9� March 13, 1989 2. RESOLUTIONS FOR ADOPTION: • 3 • 4. (a) Resolution No. 89 -10 designating "board surfing" areas, establishing dates and hours when surfing areas may be used, and rescinding Resolution No. 85 -94. (Report from Marine Department) MINUTES Board Sufg Areas Res 89 -10 (51) (b) Resolution No. 89 -11 establishing _a Live -Abrd fee to be paid in conjunction with Apli Fee APPLICATION FOR LIVE - ABOARD Res 89 -11 PERMITS. (Report from Marine (40/51) Department) CONTRACTS /AGREEMENTS: (a) Award contract to Universal Police Fac Building Maintenance for JANITORIAL Janitor Sry SERVICES OF THE POLICE FACILITY; - C -2741 and authorize the Mayor and City (38) Clerk to execute subject contract. (Report from Police Chief) (b) Award Contract No. 2382 to City National Bank on the basis of the lowest bid to provide CITY BANKING SERVICES through March 31, 1992. (Report from Finance Director) (c) Accept CalTrans offer of $360,000; and authorize the City Manager to execute required documents to complete acquisition of PORTION OF WEST NEWPORT CITY OWNED PROPERTY FOR WIDENING OF SANTA ANA RIVER BRIDGE. (Report from Public Works Department) COMMUNICATIONS - For referral as indicated: (a) To Environmental Services Coordinator for reply, letters in support of the VILLAGE INN, from Bee Jay and Joel Brown, Cap Blackburn, Mr. and Mrs. Robert 0. Higgins, Mr. and Mrs. Charles W. Masters, Nellie Reeves and Don Jones. City Bankg Srvs /City Ntl Bnk C -2382 (38) Sale of Property/ West Npt (73) Envirn Sry (24) (b) To Personnel Director for response, Personnel letter from Dr. Jerome Hunter, (66) Orange County Human Relations Commission concerning designation of MARTIN LUTHER KING'S BIRTHDAY as a holiday. (c) To Traffic Affairs Committee for TAC reply, letters from Bruce L. (85) Norlund, and Kathryn Kent Volume 43 - Page 77 • • CITY OF NEWPORT BEACH MINUTES c+ 0� N March 13, 1989 cp concerning the intersection at BALBOA BOULEVARD and Bay Avenue and traffic on Balboa Boulevard and ISLAND AVENUE. (d) To General Services Director for reply, letters from Diana Brookes and Tamara Leslie concerning RECYCLING NEWSPAPER, GLASS AND CANS. (e) To staff for response, letter from Orange County Supervisor Tom Riley regarding the County's position in response to the City's concerns about the MONORAIL PROJECT. 11 Srvs Cnty (f) To General Services for reply, Srvs letter from Barry H. Walshe [eneral 44) concerning drinking fountains and restroom maintenance at the FERRY ON BALBOA ISLAND. (g) To Planning Department for Plan inclusion in the records, (68) suggestions from Corona del Mar Community Association for appropriate usage for EMERALD ASSOCIATES PROPERTY and letter from John B. Heffernan in support of proposed care facility. (h) To Pending Legislation and egi Procedural Ethics Committee, letter (48) soliciting support of SB 103 (62) (Senator Alan Robbins) relating to automobile insurance renewal. (i) To Planning Department for Plan inclusion.in the records, letter (68) from Management Service Company regarding Linda Isle Community Association's continuing protest on the additional development of the restaurant and parking area at the southwest corner of Pacific Coast Highway and Bayside Drive. (j) To Parks, Beaches and Recreation PB &R Director for reply, letter from (62) John Trowbridge regarding proposed new basketball facilities at West Newport Park. 5. COMMUNICATIONS - For referral to the City Clerk for inclusion in the records: None. Volume 43 - Page 78 CITY OF NEWPORT BEACH COUNCIL MEMBERS G 'f' p0 9 9y�� py� ;'�%9G��'� March 13, 1989 L CALL to • 0 • 6. CLAIMS FOR DAMAGES - For denial and confirmation of the City Clerk's referral to the claims adjuster: MINUTES (36) (a) William Boyce for towing Boyce reimbursement and storage fees, alleging his vehicle towed in error on February 17, 1989 at 10th & Balboa Boulevard. (b) Judy Dillman for reimbursement of Dillman impound fee, alleging her vehicle was towed in error from 109 43rd Street. (c) Barbara Sandberg Johnson alleging Johnson damage to property as a result of City sewer backup at 1109 N. Bay Front on December 5, 1988. (d) Paul Kelly alleging vehicle towed from 4800 Seashore Drive on February 14, 1989, in error due to previous citations issued to prior owner of vehicle; seeking reimbursement of $159 for tickets incurred by previous owner of automobile. (e) Gregg Michael Padovan alleging false arrest and vehicle towed in error on December 30, 1988. (f) Harold V. Roseberry alleging Roseberry excessive physical abuse by five Newport Beach Police Officers at 11th and Balboa Boulevard on November 26, 1988. 7. SUMMONS AND COMPLAINTS - For denial and confirmation of the City Clerk's referral to the claims adjuster: None. 8. REQUEST TO APPROVE /FILL PERSONNEL (66) VACANCIES: (Report from the City Manager) (a) One Maintenance Worker I, Field Maintenance Division. (b) Two Refuse Workers I, General Services Department. (c) One Utilities Equipment Specialist, Utilities Department. (d) One Equipment Operator II, Field Maintenance Division. Volume 43 - Page 79 L is • r1 u CITY OF NEWPORT BEACH MINUTES 9 y9�C' \\� A N March 13, 1989 (e) One Beach Maintenance Crew Chief, Field Maintenance. 9. STAFF AND COMMISSION REPORTS - For Council information and approval: (a) Report from Planning Department regarding COLLECTION OF IN LIEU PARKING FEES. For Council information and filing: (b) Removed from the Consent Calendar. 10. PUBLIC HEARING SCHEDULING: None. 11. Removed from the Consent Calendar. 12. OFF -SITE PARKING AGREEMENT ANDREW'S RESTAURANT - Acceptance of an Off -Site Parking Agreement with James A. Carter and Sharon A. Carter (Andrew's Restaurant), for a portion of the required parking spaces in conjunction with USE PERMIT NO. 3328, which permitted the establishment of a restaurant located in the Recreational and Marine Commercial area of the Mariners Mile Specific Plan at 2751 West Coast Highway, Newport Beach. (Report from Planning Department) 13. RESUBDIVISION NO. 867 - Approve a subdivision agreement guaranteeing completion of the public improvements required with Resubdivision No. 867 (3636 Birch Street in the Newport Place Planned Community); authorize the Mayor and City Clerk to execute subject agreement; accept the offer of dedication of an easement for water line proposed as shown on Resubdivision No. 867; and accept the offer of dedication of vehicular access rights to Bristol Street except the existing driveway as shown on Resubdivision No. 867. (Report from Public Works Department) 14. SPECIAL EVENT PERMIT APPLICATION NO. 89 -042 - Approve, subject to conditions in the staff report, temporary street closure of Via Oporto at Lido Marina Village on Tuesday, April 11 through Monday, April 17, 1989, from 11:00 a.m. - 6:30 p.m., for the 16th annual In- the -Water Boat Show by Duncan McIntosh Company, Inc. (Report from Business License Supervisor) Volume 43,- Page 80 (68) Agm/ ew's (38) Resub 867 (84) Permit /Spcl Evnt#89 -042 (65) • • Motion All Ayes • CITY OF NEWPORT BEACH MINUTES wA y CCo v � March 13, 1989 ix 15. Removed from the Consent Calendar. 16. HARBOR PERMIT APPLICATIONS: Uphold Harbor Perm staff's recommendation to approve, Aplictns subject to conditions listed in the (51) staff report for - (a) Removed from the Consent Calendar - Application No. 124 -3400. (b) Removed from the Consent Calendar - Application No. 130 -2686. (c) Application No. 221 -2910 by Cannery Apli#221- Village Investments Partnership to 2910 build a new bulkhead bayward of 2910 and 2912 Lafayette. (Report from the Marine Department) 17. BUDGET AMENDMENTS - For approval: I (25) BA -054 (Refer to agenda item J -1) BA -055, $1,770 - Transfer in Budget Appropriations to provide for special refuse collection for Harbor View Homes; General Services - Refuse Fund. (Letter from Village Way Management, Inc., regarding request from Harbor View and Newport Hills Community Associations w /memorandum from General Services General Svs Director) (44) BA -056, $5,300 - Transfer in Budget Appropriations for construction of two City entrance signs; General Services -Field Maintenance Fund. BA -057, $32,000 Transfer in Budget Appropriations.(Decrease in Unappropriated Surplus) to provide for construction of a Bus Bay at Balboa Boulevard and 46th Street; General Fund. PW (Report from Public Works Department) (74) G. ITEMS REMOVED FROM THE CONSENT CALENDAR: 1. Report to the City Manager regarding Planning ACTIONS TAKEN BY THE PLANNING COMMISSION (68) ON FEBRUARY 23, 1989, was presented. Motion was made to receive and file the above report; but to request a staff report relative to Modification No. 3514 (antenna dish in side yard) for consideration on March 27, 1989. 2. Report'from Planning Department GPA 89 -1 concerning PROPOSED GENERAL PLAN . (45) AMENDMENT NO. 89 -1, was presented, and the following actions were taken: Volume 43 - Page 81 • Motion All Ayes • CITY OF NEWPORT BEACH MINUTES C .� v y9� 0'` 9a G� A March 13, 1989 (a) A request of Marco Baljeu to amend the Land Use Element in order to allow the subdivision of his property at 2953 Cliff Drive in Newport Heights, setting a minimum lot size standard of 5,000 square feet. (Recommended not to initiate - 5 Ayes, 2 Absent). The City Clerk advised that after the agenda was printed, two letters in support of the subject request were received from Marco Baljeu, applicant, and Helen F. Kreutzkamp, 2961 Cliff Drive. Gail Demmer, 2812 Cliff Drive, representing Newport Heights Community Association, addressed the Council, and urged that the request of Mr. Baljeu be denied. She stated they are opposed to the City compromising the density and intensity standards set forth in the new General Plan, and support the preservation of the coastal environment for their view parks. Dr. Jan Vandersloot, 2221 16th Street, addressed the Council, and requested Planning Commission's recommendation to not initiate a General Plan Amendment on the subject property be upheld in order to preserve the coastal bluff. X; Hearing no other comments relative to Item (a), motion was made to not initiate a General Plan Amendment at 2953 Cliff Drive, as requested. (f) A request of Carl Kymla to amend the Land Use Element for the Plaza de Cafes site at Birch Street and Von Karmen Avenue in Newport Place to change the designation from "Retail and Service Commercial" to "Administrative, Professional and Financial Commercial," and allow the construction of an 85,300 square foot office building and 3,000 square foot restaurant. (Recommended to initiate - 5 Ayes, 2 Absent) Carl Kymla, applicant, addressed the Council in support of his request. He stated there is somewhat of a hardship problem involved with the Plaza de Cafes, Volume 43 - Page 82 CPA 89 -1 • Motion All Ayes • Motion All Ayes • x x CITY OF NEWPORT BEACH MINUTES March 13, 1989 and the project does not appear to be feasible in the future; therefore, they have been working with City staff on the proposed General Plan Amendment so that the new project does not increase traffic and complies with the Traffic Phasing Ordinance. The Planning Director advised that when this project was originally initiated, it was less than the 85,300 sq. ft. proposed for office use, and the 3,000 sq. ft. proposed for a restaurant; however, it is intended to be a "wash" in terms of its traffic impact, taking into consideration the existing uses on the site, demolishing those structures, and constructing new buildings with a different use, but same traffic impacts. Following comments, motion was made to uphold the Planning Commission's recommendation to initiate a General Plan Amendment for the Plaza de Cafes site as requested. (e) A request of Edward Friedl to amend the Land Use Element and the Local Coastal Program Land Use Plan for the Kirkwood Motel property at 4030 East Coast Highway in Corona del Mar to change the designation from "Retail and Service Commercial" to "Multi- Family Residential" (20 du's per acre). (Recommended to initiate - 5 Ayes, 2 Absent) Council Member Sansone stated that he was in support of the request; however, he would like to see alternatives as to its use. He also stipulated that the new structures not exceed the height of the already existing buildings on the site at any point. There being no further comments, motion was made to sustain the recommendation of the Planning Commission to initiate a General Plan Amendment on property at 4030 E. Coast Highway, subject to the suggestions of Council Member Sansone. Volume 43 - Page 83 Eu= Motion All Ayes • Motion Ayes x Noes x • CITY OF NEWPORT BEACH MINUTES G� March 13, 1989 (c) A request of Westland Commercial Corporation to amend the Land Use Element and Local Coastal Program Land Use Plan for their property (or.the entire block) to change the designation from "Two- Family Residential" to "Multi- Family Residential," and to change the density standard in order to allow three units on a 103.5 foot by 35 foot (3,622 square feet) lot located at 1600 West Ocean Front on the Balboa Peninsula. (Recommended not to initiate - 5 Ayes, 2 Absent) David Diem of Westland Commercial Corporation, addressed the Council in support of the request. He stated it is their intention to build three units on the subject property, and that if they are not allowed to proceed it would create, a severe financial hardship due to the high cost of the parcel. x Following comments by the Planning Director, motion was made to uphold the recommendation of the Planning Commission to not initiate a General Plan Amendment at 1600 W. Ocean Front. (g) A proposal from staff to initiate a Balboa Peninsula Zoning Density Study which would involve amendments to the Land Use Element and the Local Coastal Program Land Use Plan, as well as the Residential Zoning Districts. The purpose of the study would be to reconsider raising the "Two- Family Residential" density standards from 2,000 square feet per unit to 2,375 square feet per dwelling unit, and also to consider changing some "Multi- Family Residential" area to "Two- Family Residential." (Recommended not to initiate - 4 Ayes, 1 Abstain, 2 Absent) x Motion was made to not initiate a X x x General Plan Amendment on this x x issue at this time, but that it be recycled with the next General Plan Amendment submittals for consideration. Volume 43 - Page 84 89 -1 a�\G as CITY OF NEWPORT BEACH ,A • Motion x Ayes x x x x x x Abstain x • • MINUTES March 13, 1989 (i) A request of Rockwell International to amend the Land Use Element for property located at 4311 Jamboree Road to increase the allowed development by 69,000 square feet. (Recommended to initiate - 5 Ayes, 2 Absent) Council Member Sansone stated that inasmuch as he is a former employee of Rockwell International, the applicant, he will abstain from voting on this matter. Therefore, motion was made by Council Member Turner to uphold the Planning Commission's recommendation to initiate a General Plan Amendment at 4311 Jamboree Road. (b) A request of Blanco Investments and Land, Ltd. (on behalf of Harbor Lights Hui, owners of John Dominus Marina) to amend the Local Coastal Program Land Use Plan and the Mariners Mile Specific Area Plan as they relate to incentive use requirements for their property at 2901 West Pacific Coast Highway, in Mariners Mile. (Recommended to initiate - 5 Ayes, 2 Absent) (d) A request of Russell Fluter, Charles Pigneri, and Paul Balalis to amend the Land Use Element and the Local Coastal Program Land Use Plan for their property at 20th Street and the Rhine Channel, to change the designation from "Recreation and Marine Commercial" to "Single - Family Detached" allowing the construction of three single - family homes on the 12,000 square foot parcel in the Cannery Village/ McFadden Square area. (Recommended to initiate - 3 Ayes, 2 Abstain, 2 Absent) The Planning Director advised, as a point of information, Russell Fluter has indicated to him that he is no longer a part of the subject application. Volume 43 - Page 85 GPA 89 -1 u Motion All Ayes • • CITY OF NEWPORT BEACH :MBERS MINUTES i tP 9 V Pof 9a GN A March 13, 1989 INDEX (h) A request of David M. Stone to GPA 89 -1 amend the Land Use Element and the Local Coastal Program Land Use Plan for the property located at 119 through 123'k Agate Avenue on Balboa Island to allow automobile and general storage in areas designated "Retail and Service Commercial." (Recommended to initiate - 4 Ayes, 1 No, 2 Absent) X Concerning Items (b, d and h), motion was made to sustain the recommendation of the Planning Commission and initiate General Plan Amendments on the subject properties, as set forth in the foregoing. 2. Report from Marine Department regarding Harbor Perm HARBOR PERMIT APPLICATION NO. 801 -307 to Apli #801 -307 uphold staff's recommendation to deny Buetell request by MIKE BUETELL for approval of (51) a revision to his residential pier bayward of 307 Grand Canal, for reasons in the staff report, was presented. The City Manager pointed out that the proposed revisions, as requested by the applicant, had been constructed in the past without an approved permit, and therefore, the applicant is requesting approval of the revisions after the fact. The applicant has added two boat davits to the existing dock to allow storage of vessels on the dock. The adopted Standard Drawings for structures in Grand Canal do not allow boat davits to be installed on the dock; the main consideration being that the Grand Canal is very narrow and it is essential to restrict the size of structures on the canal. Additionally, the applicant proposes an 8' x 8' float adjacent to his pier. The purpose of this float is to allow the applicant to berth a small vessel on the float and allow it to be berthed in such a way that it will remain out of the water. It is the recommendation of the Marine Department that the application be denied, inasmuch as: 1) the pier, as constructed, does not conform to the City's Standard Drawings; and 2) the proposed float does not conform to the City's Harbor Permit Policies regarding structures in Grand Canal. Mike Buetell, applicant, 307 Grand Canal, addressed the Council in support of his request. He stated that he would Volume 43 - Page 86 • on Ayes Ll x CITY OF NEWPORT BEACH n \`9G9�0 �tA March 13, 1989 MINUTES like to keep his kayak in front of his CPA 89 -1 house where it has been stored for many years. The pier extends 24" further than the 316" limit the City policy allows, and the davits have been installed since 1927. He stated that no views are blocked as a result of stored vessels on the dock, nor would his 10' boat, which would be berthed on the proposed 8' float, obstruct any views. He also commented that there are permits existing in the 200 block of Grand Canal for two piers which extend out further than his pier. Tony Melum, Tidelands Administrator, addressed the Council stating that Grand Canal is unique in that it is very narrow, and the City Standards allow for just two dock configurations, inasmuch as there is a potential for navigable problems; properties are very close together; and the narrowness of Grand Canal. There is also a potential for congestion, as the policy restricts the number of boats allowed at each residence, and if the subject request is approved it could set a precedent for other requests. Following discussion, motion was made to refer the subject application to the Tidelands Affairs Committee for review and report back. 4. Report from the Marine Department Harbor Perm recommending approval of Application No. ApliU124- 124 -3400 by Duncan McIntosh to 3400 temporarily revise the commercial docks (51) bayward of 3400 Via Oporto, subject to conditions in the staff report, was presented. The City Attorney recommended that Condition No. 9 be added to the application, as follows: "Applicant shall, prior to March 28, 1989, provide City with an additional insured endorsement naming the City of Newport Beach, and providing coverage of at least $1 Million in combined single - limit for any loss or liability related to the construction use and occupancy of all structures authorized by this permit, as well as all other activities of the applicant associated with the In -The- Water- Show." -Volume 43 - Page 87 on Ayes • x CITY OF NEWPORT BEACH MINUTES March 13, 1989. 5. Duncan MacIntosh, applicant, addressed the Council and stated he had no objections to the additional condition. In view of the foregoing, motion was made to approve Harbor Permit Application No. 124 -3400, subject to conditions in the staff report, including Condition No. 9, as recommended by the City Attorney. Report from the Tidelands Affairs Committee 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 slip bayward of 2686 Bayshore Drive, was presented. Robert Cohen, applicant, 2686 Bayshore Drive, addressed the Council and stated he is requesting to extend his dock to berth the new boat, which was just built. He has met with both of his neighbors, and has moved the dock as much as he can in order to accommodate the neighbor to the north. Frank Celiberti, 2692 Bayshore Drive (Mr. Cohen's neighbor to the north), addressed the Council in opposition to the request. He stated that Mr. Cohen's boat is 125' long and approximately 25' to 30' high, weighing 110 tons, and as a result, there will be a blind spot of 350 feet on the waterways, which could cause an accident with vessels approaching from different angles. He also felt that heavy winds could cause the boat to come loose from the dock and cause considerable damage, and recommended the vessel be permitted to dock at the subject location for loading and unloading purposes only. Tony Melum, Tidelands Administrator, addressed the Council and stated there are a number of locations in the harbor where there are blind spots, and he felt the "prudent" yachtsman would have to take that into consideration and handle his vessel accordingly. There are also vessels in the harbor the size of Mr. Cohen's. As to the size of the proposed dock, the City will require it be constructed according to City Standards and reviewed by Public Works Engineering staff. Volume 43 - Page 88 Harbor Perm Apli#130- 2686 (51) • Motion All Ayes • CITY OF NEWPORT BEACH EMBERS MINUTES n X19 March 13, 1989 INDEX Council Member Watt, member of the Harbor Perm Tidelands Affairs Committee, stated that Apli$130- the Committee met to review the subject 2686 application, along with Mr. Burnand (neighbor to the west)., and it was felt that the problems associated with Mr. Burnand's property could be alleviated if the dock were turned somewhat. Since the Committee met, the applicant has met with adjacent property owners in an attempt to address their concerns. As a result of those meetings, the applicant has angled his dock to the east to address the perceived berthing problems. The applicant also indicates that the vessel to be berthed at the revised float will not extend bayward of the float. The applicant has also revised the proposed pier so that it now conforms to City Standards, which have been in effect since 1964. Mr. Celiberti addressed the Council again, and reiterated his concerns with regard to what could happen should heavy winds occur, and urged that the subject vessel not be allowed to dock at the "point." He felt the boat should be at a location where it would be better protected, such as Lido Boat Yard. Mr. Cohen addressed the Council again, and stated he will have a professional crew aboard his yacht; the boat is a long -time dream of his, and he would not leave it in a precarious location; he intends to do extensive cruising with the yacht, and therefore, it will not be docked in the harbor on a permanent basis; his crew will monitor the weather, and if necessary, relocate the vessel. In response to question raised by Council Member Sansone rearding liability, the City Attorney advised that harbor permitees are required to defend and indemnify the City in the event of any liability that may arise due to the granting of any permit or activities authorized by the permit. X In view of the foregoing, motion was made to approve Harbor Permit Application No. 130 -2686, subject to conditions in the staff report, to temporarily revise the commercial docks bayward of 2686 Bayshore Drive. Volume 43 - Page 89 • Motion All Ayes Motion All Ayes lr u CITY OF NEWPORT BEACH MINUTES C G A March 13, 1989 E2 A H. ORDINANCES FOR ADOPTION: None. I. CONTINUED BUSINESS: 1. Letter from Balboa Peninsula Point PB &R /Beach Association requesting date to consider Closure BEACH CLOSURE, was presented. (62) Recycled report dated January 23, 1989 from Parks, Beaches and Recreation Director. Motion was made to establish April 24, 1989, as the date for review of beach closure issue. J. CURRENT BUSINESS: 1. Report from Public Works Department Refuse Tsfr concerning REFUSE TRANSFER STATION, was Station presented. C -2723 (38) The Public Works Director summarized his report, noting that due to the scope of work for this project, the City required that bidders possess a Class "A" general engineering contractor license from the Contractors State License Board, which the low bidder, Mac Group, Inc., does not hold. In addition, in checking the references that were supplied with the proposal of the low bidder, it appeared that their experience is primarily in remodeling projects and the construction of masonry and frame structures. He, therefore, recommended that the City Council reject the bid of Mac Group, Inc., pursuant to the written findings attached to the staff report designated as Exhibit "C." In view of the foregoing, motion was made to: (a) Make and adopt findings that the lowest monetary bidder, Mac Group, Inc., Design & Development, dba, A & M Design of Irvine, is not the "lowest responsible bidder" in the sense the word responsible means having-the quality, fitness and capacity to satisfactorily perform the work; and reject the bid of Mac Group, Inc., Design & Development; and Volume 43 - Page 90 • Motion All Ayes • • CITY OF NEWPORT BEACH MINUTES 9N March 13, 1989 l�,e to x (b) Award Contract No. 2723 to Hines Construction in the amount of $214,044 and authorize the Mayor and City Clerk to execute Contract No. 2723 for REFUSE TRANSFER STATION; and (c) Approve budget amendment in the amount of $210,000 to complete the project. 2. Letter from Newport Center Npt Ctr Transportation Management Association Trap Mgm requesting a Council appointee to the Asn NEWPORT CENTER TRANSPORTATION MANAGEMENT (24) ASSOCIATION, was presented. Motion was made to defer appointment of City's representative on the Newport Center Transportation Management Association Board of Directors to April 10, 1989. 3. Report from the City Manager concerning IBalboa Bay the MEMORANDUM OF UNDERSTANDING WITH THE Club /MOU BALBOA BAY CLUB, was presented. C -519 (38) The City Clerk advised that after the agenda was printed, three letters were received in opposition to the suggestion of Council Member Hart to convert the terrace apartments on the Balboa Bay Club site to a park. In addition, four telegrams and three telephone calls were received in opposition to the proposal; all of which are on file in the Clerk's office. The City Manager summarized his report, in part, as follows: "The original Balboa Bay Club (BBC) lease was signed on March 24, 1948 and was to have expired on August 31, 1998. On June 10, 1985 the City entered into a Memorandum of Understanding with the BBC outlining procedures for the consideration of a new 25 -year lease. On May 12, 1986 the City Council approved of the new lease adding 12 years to the original lease and increasing the rental payments to the City. Both the 1985 MOU and the 1986 agreement required the BBC to prepare a new redevelopment plan for the BBC consistent with the newly adopted City General Plan and Land Use Element. Volume 43 - Page 91 • • CITY OF NEWPORT BEACH MINUTES March 13, 1989 "On February 13, 1989 representatives of the BBC appeared before the City Council at the Study Session and presented the conceptual redevelopment plan to the City. This conceptual plan is consistent with the newly adopted City General Plan. During the presentation of February 13, it was stated to the City Council that a new MOD would be presented on March 13 for the Council's consideration, which is attached, to the staff report. "The reason for the MOU is that the BBC will spend in excess of $1 Million to prepare all plans, specifications, environmental impact reports, and agreements with the Coastal Commission. This MOU will give some assurance to them that for this expenditure of funds the City will, in good faith, consider a 50 -year term lease, provided the City Council agrees with the rental terms and conditions. Finally, it is the BBC's contention that the large sums of money needed to implement the redevelopment plan will require more than 25 years to amortize." The City Manager advised that the plans for the BBC include renovation of the Club's facilities, additional public access from the easterly most portion of the Club, and additional parking, all of which have to be submitted to the Coastal Commission, Planning Commission and City Council. Also, there will be informal meetings held with the neighboring homeowner associations prior to this item coming back to the Council. The City Manager reviewed the proposed MOD, in part, as follows: A. On March 24, 1948, prior to the effective date of the City Charter, City and Club entered into a fifty (50) year lease of certain City -owned harbor frontage lands terminating on August 31, 1998. B. On June 10, 1985, the City and the Club entered into a Memorandum of Understanding (1985 MOU) providing for, Volume 43 - Page 92 oa Bay /MOU G9�pQ�G 'P� s • • CITY OF NEWPORT BEACH March 13, 1989 MINUTES among other things, the extension of the existing Club Lease for a period of up to twenty -five (25) years upon satisfaction of certain conditions relating to establishing current fair market rent for the leased premises. C. On May 12, 1986, the City Council of City approved a new lease between City and Club having an additional term of twelve (12) years for a total of twenty -five (25) years terminating in the year 2011 (New Lease). D. The 1985 MU and the New Lease required Club to prepare a new Master Plan for the Club property consistent with the City General Plan and Land Use Element. The New Lease further provided for the City to consider an additional lease term extension of the financing and implementation of the new Master Plan. E. The Club has completed preparation of the Plan and filed with the City a vesting tentative map incorporating said Plan. The application for the vesting tentative map has been deemed complete by the City. P. In order to complete details of the Master Plan, the Club will be required to make a major financial commitment in retaining the necessary consultants.for the preparation of the architectural engineering plans and traffic studies, as well as paying the cost of the consultant retained by the City to prepare the environmental impact report (EIR). G. Before the Club makes substantial additional financial commitments to the Master Plan, the City and Club desire to reach an understanding regarding the . Volume 43 - Page 93 Bay \G� �N • • • CITY OF NEWPORT BEACH March 13, 1989 MINUTES terms and conditions under which the City would consider a further extension of the Club Lease for a period of up to fifty (50) years consistent with the provisions of the 1985 MOU and the New Lease. Implementation of the Master Plan will require further major financial commitments for the new improvements and necessitate a longer lease term to finance and amortize these new improvements. The City Manager stated that there are some Council Members who have indicated objections to the City entering into another 50 -year lease with the BBC; and therefore, a provision was placed in the MOU which states: "Upon City approval of the plan, the plan, EIR and associated entitlements and permits, City agrees to a further lease extension having a maximum total term of fifty (50) years subject to mutual agreement on terms, conditions and rental rates." Mayor Pro Tem Plummer expressed her concerns as to whether the City Council actually had the authority to enter into a 50 -year lease under the Charter provisions, or whether the issue should be voted on by the electorate. The City Attorney, in response to Mayor Pro Tem Plummer's comments about the upcoming measure referring to the River Avenue property, advised that the proposed measure cannot be compared with the BBC, unless one were to assume that the City was going to lease the property to someone to build a house the City would own at the end of the 50 -year term. The provision in Section 420 of the Charter that allows the Council to go beyond the normal 25 -year limit on contracts simply requires a lease to provide for City ownership of improvements at the end of the term. The other provision in the Charter that is implicated with the BBC lease states that the City cannot sell or lease waterfront property without the vote of the people. However, the exception to that rule is the fact that the property was under lease before the effective date of the Charter, which was January 7, 1955. Volume 43 - Page 94 Bay • • CITY OF NEWPORT BEACH MINUTES C \GIN A March 13, 1989 Council Member Hart stated it is her Balboa Bay interpretation of the Charter that the Club /MOU Council cannot enter into any agreement with respect to City property for a term longer than 25 years. Council Member Hart also referenced the recent newspaper article in the Daily Pilot indicating her desire to convert the Bay Club Terrace Apartments into a park, and stated it was not her intention to "kick anyone out into the street," and pointed out that it was only two years ago the City extended the current lease another 12 years, leaving 23 years remaining on said lease. Council Member Hart stated: "This evening is not a testimonial for the BBC, and if it were, there would be a bunch of roses being thrown out to the Club, as they do a good job, but for me to go along with the MOU, I would be promising to consider a 50 -year lease, and in my opinion, the City Council does not have the authority. The BBC property was given to the City for public use by James Irvine in 1928, and since 1948, the City's property has been leased to the BBC. Approximately $269,000 in revenue is received from the BBC for the 'uplands' portion of the lease, not including the Tidelands, or where the boats dock. No one in the City is more fiscally conservative than I, and I am very careful as to what I support. What I am asking the people in Newport Beach is for a 'vision,' and this is not the first time I have come to the Council,to request a certain piece of property be analyzed for future open space. Everyone living in the City is living here because of the water, enjoyment of boating activities, visual view of bay and 'ocean, ocean breezes, and sunsets over the water. I am asking the Council to look at the future as you drive down PCH, walk or bicycle, at approximately 5 acres of open space on the narrow west end of the BBC looking over the water. I have no intention of ever asphalting it in for a parking lot; it's not a beach, and the boats would remain, but it would be a place with some green area where people could go to enjoy looking at the water. I think this would really be a 'dynamite' statement for what our City means to all of us who live and work here. It would Volume 43 - Page 95 Motion • • CITY OF NEWPORT BEACH EMSERS MINUTES fc wAq y9� n0� 9� Ga March 13, 1989 N INDEX also leave the majority of the property, Balboa Bay approximately 10 acres, under lease with Club /MOU the BBC. The BBC's new master plan will not be affected by what I have proposed this evening. In conclusion, this property already belongs to the City of Newort Beach; the loss of revenue would be minimal; we do not have the authority to enter into a 50 -year lease; and yes, we can go to the people for a vote on this issue; the life of the Terrace apartments will be more than 45 years x old in the year 2011, and therefore, my motion will be to continue the MOD, as I would like to work with the BBC, and bring this item back at a later date." Discussion ensued again with regard to whether the City Council can, or cannot legally enter into a 50 -year lease with the BBC, wherein reference was made to: "Charter Section 420. Contracts. Restrictions. The City Council shall not have the power to make or authorize any contract or lease or extension thereof for a longer period than twenty -five years unless said contract, lease or extension be approved by a majority of the qualified electors of the City voting on such question at any election. A contract, lease or extension for a longer period shall be valid without such approval if it provides for the acquisition by the City at the end of such period of the real or personal property so leased or contracted for. This Section shall not apply to any franchise granted pursuant to the provisions of this Charter or to any contract for the furnishing, or acquisition of the products, commodity or services of any public utility." The City.Attorney stated it was his opinion that the City Council had the authority to enter into a 50 -year lease and that approval from the electorate was not necessary. It was also indicated that due to various interpretations of the Charter provision, it might be prudent to seek an outside legal.opinion. Volume 43 - Page 96 • • CITY OF NEWPORT BEACH MINUTES O 0 fl` March 13, 1989 F � Dennis D. O'Neil, 18881 Von Karmen, Irvine, Attorney representing the BBC, addressed the Council and stated he helped prepare the proposed MOU with the assistance of the City Attorney, which he felt was consistent with prior actions of the City Council; he indicated their disagreement with Council Member Hart's position; stated they have filed a vested tentative map for the redevelopment of the site and under State law are required to process that map within a period of 12 months. They have estimated $1 Million for the redevelopment and would like to have assurance from the City, providing they comply with the provisions of the MOU, to enter into a lease of up to 50 years. He pointed out the public uses connected with the property, and felt there will be the "best of both worlds" as the public will have access to the site. At the same time, maximum use will be made of the property, hence, a maximum rental return to the City. They feel the proposed redevelopment will be extremely beneficial to the public, as well as to the City in terms of revenue; and due to the short time frame involved, they would like the Council to act favorably on the subject item at this meeting. William Ray, Chairman of the BBC, addressed the Council in, response to Council Member Hart's comments, stating that there never was any condition placed on the property regarding open space or limiting it to a specific area, when James Irvine gave the City the subject property. The revenue the City receives from the BBC for the apartments referred to by Council Member Hart is approximately $500,000. If the MOU is approved and implemented, an additional approximate $14 - $35 Million would be generated as rental income. It would not be feasible for them to proceed with their master plan for redevelopment if the property is divided as suggested by Council Member Hart, and it would also not be practical to obtain financing for only a 25 -year lease. With regard to interpretation of Section 420 of the City Charter, they have contacted numerous legal counsels who have indicated, in their opinion, the City Council can approve a 50 -year lease without the vote of the electorate. They are opposed to delaying the MOD due Volume 43 - Page 97 Balboa Bay Club /MOU • • 0 CITY OF NEWPORT BEACH MINUTES n \v y9� °f GaN March 13, 1989 to available financing, and inasmuch as they have already reviewed the Charter issue on several occasions. Jack Carnahan (no address given) addressed the Council in opposition to the suggestion to convert the Terrace apartments to open space, stating he felt it would resemble Laguna Beach's main beach. He also felt there was adequate open space throughout the City. David Shores, 1942 Galaxy Drive, addressed the Council and concurred in the remarks of Mr. Carnahan. He felt the City did not need to spend additional taxpayers monies to maintain parks and beaches that would attract visitors from areas outside the City. He also felt that many of the City's recreational facilities are not utilized and indicated additional open space was not needed. He spoke in support of the BBC noting it added prestige to the City and has been actively involved in community affairs. Elon Wells, 20 Jetty Drive, addressed the Council and stated that during his extensive travels throughout the world, he has come across numerous people who are aware of Newport Beach because of the Balboa Bay Club. He also felt it would be "tragic" for the City to devote five acres to a park due to the amount of increased revenue that will be generated as a result of redevelopment. Les Steffensen, 735 Cameo Highlands, addressed the Council and stated he helped author the City Charter, and that Section 420 was written with the intention to exempt existing leases from the provision of the 25 -year limit. Further, that since the BBC entered into their lease in 1948 and the Charter was not effective until 1955, he felt they' are exempt, and the City Council could authorize a 50 -year lease without going to the vote of the people. He also spoke in support of the BBC's request for redevelopment and indicated he was not in favor of Hart's suggestion relative to a park. Tom Deemer, 1901 Kings Road, and President of the Balboa Bay Club,, addressed the Council and clarified a comment made by Council Member Hart earlier regarding the amount of revenue the City receives from the "uplands" . Volume 43 -;Page 98 Balboa Bay Club /MOU • 1� u CITY OF NEWPORT BEACH tp 9 y9y �0 \G�tA A\ March 13, 1989 MINUTES portion of their lease. He also pointed out that there are 145 families living in the Terrace apartments at the Club, which has been there since 1967. The average age residing in the apartments is 60.8 years old; 52% are widows or widowers, and they do not anticipate that the mix will change between now and the time the building may be torn down in 23 years. Jim Dale, 118 Apolena Avenue, addressed the Council in support of the BBC, citing their generosity to the community. He felt the revenue generated from the BBC was important to the City in order to provide services to its residents, and that the proposed park would create added congestion on Pacific Coast Highway. Don Vance, 1221 W. Coast Highway, addressed the Council in favor of the MOD and in opposition to convert a portion of the BBC to a park. He referenced his letter of this date, and stated the Council was elected to do a job; therefore, this issue should not be put on the ballot. Bill Lusk, member of the BBC, addressed the Council in support of their request. As Chairman of the Annual Christmas Boat Parade, he stated he has had an opportunity to view the many public accesses to the bay, of which there are some 40+ areas to view the parade from the water. He stated he did not know of another City with more open space than Newport Beach. Relative to the suggestion for a park, he felt it would create serious traffic problems and that the park itself would be the City's most expensive open space. Dr. Jan Vandersloot, 2221 16th Street, addressed the Council in support of the proposal for a park, as he is concerned with preserving open space on the bay. He resides in Newport Heights and has seen loss of views due to development in Mariners Mile; also, when the BBC was constructed, they did not give consideration to the view from the view parks above Pacific Coast Highway. Paul Salata, 98 Linda Isle, addressed the Council in support of the BBC and stated he felt it would not be in the best interest of the City to convert the Terrace apartments into a park. Volume 43 - Page 99 Balboa Bay Club /MOD • • CITY OF NEWPORT BEACH MINUTES �j� y O0 is L .® tP Go N March 13, 1989 Herbert Sutton, 912 Via Lido Nord, addressed the Council and spoke in support of the revenue the City receives from the BBC. He also felt that if the Council is looking for another area for a park, he would suggest the area south of Cameo Shores where there would not be a parking problem, and one could look out over the ocean and also swim. Pat Michaels, 4521 Cortland Drive, addressed the Council and stated he felt the BBC was a "super citizen" in the community, and that the proposed park could not offer the same kind of contributions the Club has given the City over the years. Joe Perricone, resident of the BBC, addressed the Council and stated he felt the proposed park idea was an "irresponsible proposal." Anne Slemons, resident of the BBC, addressed the Council in opposition to the proposed park, stating that if the site were converted to open space one still could not swim in the area due to pollution in the bay. In response to question raised by Council Member Sansone regarding the Terrace apartments, Mr. Ray advised that it is their intention to only do cosmetic remodeling to the structure, inasmuch as it was constructed in 1967 and is a Class "A" type building. Mayor Strauss stated he cannot support the MOU at this time as he would like to learn more about the proposed 50 -year lease commitment. Council Member Cox stated he will not support Council Member Hart's motion for a number of reasons. He felt this subject was not new to the Council and discussions have been ongoing since 1985. He also felt the proposed 50 -year lease is "right and reasonable," and entitled by the original Charter. From a business point of view he cannot rationally come to grips with anything other than a 50 -year lease. It also does not make any sense to him to demolish the Terrace apartments in return for open space at this site. The BBC has been an excellent citizen in the City and he felt the Council should support their efforts and the residents Volume 43 - Page 100 Balboa Bay Club /MOU CITY OF NEWPORT BEACH \a�9 y9� �0 GtP March 13, 1989 �n N 0 o • Aye Noes I x I x I x ix I x • MINUTES that reside there; and in addition, allow the Club to make it a "first class" facility, so in turn, the City will benefit as well. X In view of the foregoing comments, substitute motion was made by Council Member Cox to approve the MOU and authorize the Mayor and City Clerk to execute the subject document. Council Member Turner indicated he concurred in some remarks made by Council Member Cox, and pointing out that the BBC has been a good neighbor in the community for almost 50 years; and that much of the City's history stems from events at the Club. Inasmuch as the City did enter into the subject lease with the BBC prior to the Charter being written, and due to the legal opinion given by the City Attorney, and previous City Attorneys, he felt the Council had the authority to enter into a 50 -year lease agreement. He also noted that additional revenue will be generated as a result of a new lease which will be of great benefit to the City. He felt the City had adequate beaches, and that an additional five acres was not necessary. Council Member Sansone addressed the concerned residents of the Terrace apartments, who were in attendance, and emphasized that it is not the City's intention to immediately "tear down" the building, as the current lease is in effect for 23 more years. With regard to whether the,City Council has the authority to enter into a 50 -year lease, he felt the staff should seek outside legal counsel prior to taking action on the MOU. X The substitute motion made by Council X Member Cox was voted on, and FAILED. Council Member Hart restated her motion as follows: "To continue this item to April 24, 1989, to allow Council Member Hart and other Council Members to meet with representatives of the BBC." Council Member Hart stated it was her intention in deferring this item to discuss with the BBC, the feasibility of dividing the Terrace apartment property without interferring with the existing Volume 43 - Page 101 Balboa Bay Club /MOU CITY OF NEWPORT BEACH MINUTES 0 \GV y9� cA �� �9a � March 13, 1989 • Ayes Noes Ixlx Ix Ix Ix Ix • Motion All Ayes U X lease, and to determine if the City can help the Club to achieve a new 50 -year lease on the remainder of the property proposed for redevelopment. Council Member Sansone moved an amendment to the above motion, directing staff to obtain an "independent" legal opinion as to whether the City Council has the authority to approve a 50 -year lease on the subject property. x I The amendment was in agreement with Council Member Hart, and the motion, as revised, was voted on and carried. 4. Oral Report and recommendations Monorail/ concerning MONORAIL AT JOHN WAYNE John Wayne- AIRPORT: 0/C Arprt The City Manager stated that the Council has recieved a revised MOU dated March 13, 1989, which stipulates there will be no terminal -like functions performed by the proposed John Wayne Airport monorail, and is to be executed by the Cities of Irvine, and Newport Beach and the County of Orange. If the MOU is approved by Irvine and the County, then the City can remove their protest of the Negative Declaration prepared for the project by the County and the project can proceed. In view of the foregoing, Mayor Strauss moved the following motion: "To authorize the Mayor and City Clerk to execute a Memorandum of Understanding with the County of Orange and City of Irvine regarding the proposed John Wayne Airport Monorail, subject to the following: (1) The MOU shall be the same as the document submitted to the City Council this afternoon with the City Attorney authorized to make minor non - substantive changes; and (2) The MOU will not be executed until a Joint Policy Memorandum, similar to the document submitted to the City Council this afternoon has been approved by the City of Irvine; and Volume 43 - Page 102 ate\ \G as 0 • • CITY OF NEWPORT BEACH MINUTES March 13, 1989 (3) The City Council Ad Hoc Airport Committee is authorized to approve changes to the MOU, or Joint Policy Memorandum, as it deems appropriate. Meeting adjourned at 10:30 p.m. ATTEST: The agenda for this meeting was posted on March 9, 1989, at 8:45 a.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. U Volume 43 - Page 103 Monorail /' John Wayne - O/C Arprt