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Home My WebLink About03/27/1989 - Regular MeetingPresent x x x x x x x Motion x All Ayes Son x All Ayes Motion All Ayes E Motion All Ayes 10 x X I MINUTES A. ROLL CALL. B. Reading of Minutes of Meeting of March 13, 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 concerning VACATION AND ABANDONMENT OF AN EASEMENT FOR SEWER PURPOSES CROSSING LOT 100, TRACT NO. 1116 (located at 182 Shorecliff Road). Report from Public Works Department, was presented. Hearing no one wishing to address the Council, the public hearing was closed. Motion was made to adopt Resolution No. 89 -12 ordering the vacation and abandonment of a portion of an existing sewer easement; and directing the City Clerk to have said resolution recorded by the Orange County Recorder. E. PUBLIC COMMENTS: None. F. CONSENT CALENDAR: The following actions were taken as indicated, except for those items removed. 1. ORDINANCES FOR INTRODUCTION: None. 2. RESOLUTIONS FOR ADOPTION: (a) Removed from the Consent Calendar. (b) Resolution No. 89 -13 authorizing the Mayor and City Clerk to execute Program Supplement No. 006 to Local Agency /State Agreement 12 -5151 for COAST HIGHWAY REHABILITATION PROJECT - Bayside Drive to .MacArthur Boulevard; Contract No. 2703, FAU Project No. M- 5001(44). (Report from Public Works Department) Volume 43 - Page 104 Swr Esmt 182 Shore- cliff Rd (90) 89 -12 Arthur /Cst Hwy Rehab Res 89 -13 C -2703, (38) CITY CITY OF NEWPORT BEACH -USERS A COUNCIL MEETING O� y1 PLACE: Council Chambers \tpqp TIME: 7:30 P.M. DATE: March 27, 1989 Present x x x x x x x Motion x All Ayes Son x All Ayes Motion All Ayes E Motion All Ayes 10 x X I MINUTES A. ROLL CALL. B. Reading of Minutes of Meeting of March 13, 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 concerning VACATION AND ABANDONMENT OF AN EASEMENT FOR SEWER PURPOSES CROSSING LOT 100, TRACT NO. 1116 (located at 182 Shorecliff Road). Report from Public Works Department, was presented. Hearing no one wishing to address the Council, the public hearing was closed. Motion was made to adopt Resolution No. 89 -12 ordering the vacation and abandonment of a portion of an existing sewer easement; and directing the City Clerk to have said resolution recorded by the Orange County Recorder. E. PUBLIC COMMENTS: None. F. CONSENT CALENDAR: The following actions were taken as indicated, except for those items removed. 1. ORDINANCES FOR INTRODUCTION: None. 2. RESOLUTIONS FOR ADOPTION: (a) Removed from the Consent Calendar. (b) Resolution No. 89 -13 authorizing the Mayor and City Clerk to execute Program Supplement No. 006 to Local Agency /State Agreement 12 -5151 for COAST HIGHWAY REHABILITATION PROJECT - Bayside Drive to .MacArthur Boulevard; Contract No. 2703, FAU Project No. M- 5001(44). (Report from Public Works Department) Volume 43 - Page 104 Swr Esmt 182 Shore- cliff Rd (90) 89 -12 Arthur /Cst Hwy Rehab Res 89 -13 C -2703, (38) • • • CITY OF NEWPORT BEACH MINUTES March 27, 1989 (c) Resolution No. 89 -14 making Undergrnd' findings on the petition concerning Utilities / establishment of ASSESSMENT Asmt Dist#57 DISTRICT NO. 57 (Undergrounding Res 89 -14 Utilities in Corona Highlands); and (89) accepting and approving the petition submitted by the property owners. (Report from Public Works' Department) (d) Resolution No. 89 -15 making Undergrnd appointments in SPECIAL ASSESSMENT Utilities/ DISTRICT NO. 57; appointment of the Asmt Dist #57 Superintendent of Streets as the Res 89 -15 engineer; and the Daily Pilot as (89) the newspaper for legal publications. (Refer to staff report w /agenda item F -2(c)) (e) Resolution No. 89 -16 adopting Undergrnd proposed boundary map for SPECIAL Utilities/ ASSESSMENT DISTRICT NO. 57. (Refer Asmt Dist#57 to staff report w /agenda item Res 89 -16 F -2(c)) (89) (f) Resolution No. 89 -17 Resolution of Undergrnd Intention; Jurisdictional Utilities/ Resolution under "1913 Act" Asmt Dist#57 proceedings, declaring intent to Res 89 -17 finance improvements through (89) issuance of bonds concerning ASSESSMENT DISTRICT NO. 57. (Refer to staff report w /agenda item F -2(c)) (g) Resolution No. 89 -18 passing on engineer's report and SETTING PUBLIC HEARING for ASSESSMENT. DISTRICT NO. 57 at 7:30 p.m., on May 8, 1989. (Refer to staff report w /agenda item F -2(c)) (h) Resolution No. 89 -19 authorizing sale of bonds concerning ASSESSMENT DISTRICT NO. 57. (Refer to staff report w /agenda item F -2(c)) (i) Resolution No. 89 -20 adopting Amendment No. 1 to the First Amended and Restated Joint Exercise of Powers Agreement Creating the SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY (which agreement became effective on October 17, 1988) to permit the City of Dana Point admission as a party to said agency with the County of Orange, and the Cities of Costa Mesa, Irvine, Mission Viejo, Newport Beach, San Clemente, San Juan Capistrano and Santa Ana. Volume 43 - Page 105 Utilities Asmt Dist#57 Res 89 -18 (89) Utilities Asmt Dist#57 Res 89 -19 (89) SJoaquin His Trnsp Crdr Agcy/ Dana Pt Res 89 -20 (38) CITY OF NEWPORT BEACH MINUTES C L\GNo� 7� March 27, 1989 to o 3. • 0 • CONTRACTS /AGREEMENTS: (a) Find that the lowest bidder, Pascal 8 Ludwig Engineers, can meet the requirements for completing the proposed contract work and declare him the "low bidder;" award Contract No. 2697 -B to Pascal & Ludwig Engineers in the amount of $379,800; and authorize the Mayor and City Clerk to execute said Contract for CONSTRUCTION OF METROPOLITAN WATER DISTRICT SERVICE CONNECTION (CM -13) AT BONITA CREEK PARK. (Report from Public Works and Utilities Departments) Bonita Crk Prk /MWDS Cnctn C -2697 (38) (b) Authorize the Mayor and City Clerk Marinapark to execute Agreement regarding MHm Sp 11 -B TRANSFER OF MOBILEHOME SPACE AND C -2744 COMPENSATION FOR SERVICES AND COSTS (38) FOR SPACE NO. 11 -B to James R. Quandt 8 Marleen D. Quandt. COMMUNICATIONS - For referral as indicated: (a) To Public Works Department for inclusion in the records, letters opposed to RELOCATING PUBLIC RESTROOM to the east side of the Newport Pier from Jean Knight, Marjorie Hayden, Evelyn Adler, Jack Chanoux, and Central Newport Beach Community Association. (b) To staff for response, letter from Allan Beek suggesting a survey to obtain a broad base of response from Newport Beach employers concerning a SUBSIDY FOR EMPLOYEE HOUSING PROGRAM towards reducing commuter miles driven. (c) To Planning Department for inclusion in the records, letters from Phil Lansdale, and Irving Burg expressing pleasure that the EMERALD VILLAGE project has been approved by the Planning Commission. (74) Emplye Hag (66) Planning (68) (d) To General Services Department for IGS response, letter from Central (44) Newport Beach Community Association concerning 15TH STREET RESTROOMS and landscaping of the are Volume 43 - Page 106 • CITY OF NEWPORT BEACH MINUTES o0 4c March 27, 1989 l�,H atr (e) To Marine Department for reply, Marine letter from Central Newport each (51) Community Association concerning the parking of vehicles relative to the DORY FISHING FLEET at Newport Pier. (f) To Traffic Affairs Committee for TAG response, letter from Central (85) Newport Beach Community Association requesting STOP SIGNS ON BALBOA BOULEVARD. (g) To Environmental Services EQ /CAC Coordinator for inclusion in the (24) records, letter from James Culhane expressing his support for THE VILLAGE INN RESTAURANT. 5. COMMUNICATIONS - For referral to the City Clerk for inclusion in the records: (a) Copy of telegram delivered by phone regarding Peter Urpin's request for technical evaluation of Lee Lake Water District Pollution Control Facility proposed discharge and upper Tenescal Creek. 6. CLAIMS FOR DAMAGES - For denial and I(36) confirmation of the City Clerk's referral to the claims adjuster: (a) Jonathan H. Betts seeking indemnity Betts from claim filed by Margaret Thielemeir who was involved in accident on December 11, 1985, at Pacific Coast Highway and Larkspur. (b) Jim Fournier alleging loss of tooth Fournier due to fall over bench at foot of Balboa Pier on February 21, 1989. (c) Michael Genera alleging City Police Genera Department lost his wallet and money contained therein when he was arrested on October 1, 1988 near Jamboree Road; seeking reimbursement. (d) Stan G. Leon alleging City Refuse Leon picked yip his bicycle in error on March 9, 1989 at 2309 Vista Huerta; seeking reimbursement. (e) International Onion, Inc., dba The Interna - Red Onion for indemnification, tional contribution and declartory relief Onion /Red pursuant to Govt. Code Sections Onion 901/910; Superior Court Case #540443 (re: Vicki Louise Parsons claim of June 22, 1987). Volume 43 - Page 107 CITY OF NEWPORT BEACH COUNCIL MEMBERS MINUTES \LL\N\0#% %P % � March 27, 1989 ROLL � � INDEX (f) David Palmer alleging personal Palmer injuries as a result of fall due to square shaped hole in sidewalk in front of 701 -702 Lido Park Drive on December 9, 1988. (g) William C. Schmidt alleging damage Schmidt to tire and wheel due to uncovered' water main cover on San Joaquin Hills Road on March 2, 1989. (h) Removed from the Consent Calendar. (i) John W. Shea alleging damage to Shea bicycle tires as a result of alley being newly resurfaced by the City at the Wedge area near Ocean Front alley on January 31, 1989. (j) Scott William Whitehead alleging Whitehead false arrest, assault and battery, etc. sustained on February 25, 1989, at 102 McFadden and Newport Beach City Jail. For rejection: (k) Late Claim of TYMCO, Inc., seeking TYMCO, Inc. indemnity from claim filed by Larry E. Edmondson who was injured while working as a mechanic on a Newport • Beach City vehicle on November 21, 1986 at Carmenita Ford, Santa Fe Springs. 7. SUMMONS AND COMPLAINTS - For denial and (36) confirmation of the City Clerk's referral to the claims adjuster: (a) Marcia Chapman for personal Chapman injuries as a result of being rear -ended by City truck on Seashore Drive; claim was denied by City Council on September 26, 1988. Orange County Superior Court, Case No. 583955. 8. REQUEST TO APPROVE /FILL PERSONNEL (66) VACANCIES: (Report from the City Manager) (a) One Administrative Clerk, Current Planning Division. (b) One Refuse Worker I, General • Services Department. (c) One Tree Trimmer I, Tree Division. (d) One Executive Secretary, Planning Department. Volume 43 - Page 108 CITY OF NEWPORT BEACH MINUTES \Ga�P N March 27, 1989 (68) Hazard -. Waste Pln cArthur/ a Lane wlk Cnctn 2707 II Ocean nt.Sdwlk (84) 734 9. STAFF AND COMMISSION REPORTS - For Council information and approval: (a) Removed from the Consent Calendar. • (b) Removed from the Consent Calendar. For Council information and filing: (c) Report to the City Manager regarding ACTIONS TAKEN BY THE PLANNING COMMISSION ON MARCH 9, 1989. 10. , PUBLIC HEARING SCHEDULING - April 10, 1989: (a) Removed from the Consent Calendar. (b) ORANGE COUNTY HAZARDOUS WASTE MANAGEMENT PLAN - TANNER REGULATION - A request to recommend that the City Council approve the Orange County Hazardous Waste Management Plan and accept the Environmental Document. (Report from the Planning Department) 11. MACARTHUR BOULEVARD TO SEA LANE SIDEWALK CONNECTION (CONTRACT NO. 2707) - Affirm the Negative Declaration and Categorical • Exemptions of Environmental Impact; (Jamboree Road Slough Wall between Bayside Drive and Pacific Coast Highway; Bayside Drive Slough Wall between County Road and Carnation Avenue; Bayside Drive Parking Lot Improvements; and Dahlia Avenue Parking Lot Meters) approve the plans and specifications; and authorize the City Clerk to advertise for bids to be opened at 11:00 a.m. on April 14, 1989. (Report from Public Works Department) 12. PHASE II, OCEAN FRONT SIDEWALK REPAIR 1988/89 (CONTRACT NO. 2740) - Approve the plans and specifications; and authorize the City Clerk to advertise for bids to be opened at 11:00 a.m. on April 13, 1989. (Report from Public Works Department) 13. RESUBDIVISION NO. 734 - Approve a subdivision agreement and accompanying surety guaranteeing completion of the public improvements required with • Resubdivision No. 734 (portion of Block 97 of Irvine's Subdivision, located on the easterly side of Ridgeline Drive approximately 200 feet south of Napoli in Harbor Ridge); authorize the Mayor Volume 43 - Page 109 (68) Hazard -. Waste Pln cArthur/ a Lane wlk Cnctn 2707 II Ocean nt.Sdwlk (84) 734 • is CITY OF NEWPORT BEACH MINUTES March 27,'1989 and City Clerk to execute , subject agreement; and authorize City Clerk to release the Faithful Performance and Labor and Materials Bonds (Bond. No. 52408299). (Report from Public Works Department) 14. HARBOR PERMIT APPLICATIONS -. Harbor Perm Aplictns(51) (a) Application No. 105 -117 - #105 -117 Removed from the Consent Calendar. (b) Application No. 259 -1 - Removed from the Consent Calendar. 15. SPECIAL EVENTS PERMITS - Uphold staff's permits/ recommendation for approval, subject to Spcl Events the conditions in the staff report for (65) the following: (Report from Business License Supervisor) (a) Application No. 88 -404 - #88 -404 Temporary use of public streets at streets adjacent to Ford Aerospace on Saturday May 13 from 6:00 - 10:30 a.m., for the Ninth Annual Spring Tune -Up Run by Ford Aerospace Corporation. (b). Application No. 88 -424 - Temporary street closure at Newport Center Drive on Sunday, May 21 from 8:00 - 10:00 a.m. for the 8K and 2K Fun Runs by Ocean of Life Church. (c) Removed from the Consent Calendar - Application No. 89 -084. (d) Application No. 89 -094 - #89 -094 Amplified sound in a residential area at 2730 Point Del Mar on Saturday, April 1 from 8:00 p.m. - Midnight for the birthday party by Harland Sheetz. 16. BUDGET AMENDMENTS - For approval: 1(25) BA -058, $167,000 - Increase in Budget Appropriations and Revenue Estimates for construction of sewer line across Coast Highway at Bayside Drive (O.C.S.C. will reimburse City In accordance with a Cooperative Agreement); Contributions Fund. Volume 43 - Page 110 • Motion All Ayes is r� u CITY OF NEWPORT BEACH p0 IN \Ga0' March 27, 1989 MINUTES G. ITEMS REMOVED FROM THE CONSENT CALENDAR: 1. Memorandum from Executive Assistant to the City Manager was presented regarding JOHN WAYNE AIRPORT NOISE ABATEMENT PROCEDURES (letter to Orange County Board of Supervisors requesting studies of current Noise Abatement Procedures). Motion was made to defer action on this item until April 10. 2. Report from the City Attorney concerning proposed resolution authorizing the Mayor and City Clerk to execute a Consent to Assignment and Estoppel Certificate in conjunction with the BALBOA BAY CLUB (BBC) proposed refinancing, was presented. The City Clerk advised that after the agenda was printed, a letter was received from Donald W. Harvey, 2039 Port Weybridge Place, regarding the BBC. The City Attorney presented a Supplemental Report dated March 24, 1989, relative to the proposed use of BBC Lease to partially secure loan to International Bay Clubs, Inc. The City Attorney, in summarizing the subject report, noted in part, that the International Bay Clubs, Inc. (IBC) has asked the City Council to approve its assignment of the 1986 Balboa Bay Club (BBC) Lease to a lender as partial security for a loan of approximately thirty million dollars ($30,000,000). In the past, similar requests have been approved without significant discussion. However, the proposed transaction has generated some controversy because of the amount of the loan, the fact that not all of the proceeds are required to be applied to the BBC property, and the complexity of the transaction. In reviewing previous refinancing proposals, it was pointed out by the City Attorney that in the past, the BBC has frequently asked the City to consent to an assignment of its leasehold Interest to secure various loans. In 1976, Dennis O'Neil prepared a memo summarizing refinancing requests submitted prior to October, 1976. In 1982, the Council again consented to an assignment of the leasehold interest Volume 43 - Page 111 0/C -John Wayne Arprt/ Noise Abtm Prcdrs (54) Balboa Bay Club C -519 (38) C CITY OF NEWPORT BEACH MINUTES \sPA\ is March 27, 1989 provided it was not to secure loans in excess of $14.5 million. At some point in time, IBC, described by Bill Ray as a holding company, took over the beneficial interest in the BBC lease. IBC and First American Trust Company created a land holding trust which holds, or was to have held, the beneficial interest in the BBC Lease. There is no indication the City Council approved of these transactions, but IBC was identified as the Lessee in the 1982 Consent to Assignment. With regard to the proposed refinancing, the City Attorney commented that in a letter dated March 15, 1989, IBC submitted a request for Council approval of a relative complex 'refinancing' which involved the use of the BBC Lease . to partially collateralize a loan of $30 million. The $30 million loan sought by IBC would be secured by assets other than BBC Lease as described in the correspondence from Bill Ray to him dated March 21, 1989. According to Mr. Ray, a substantial amount of the new loan will be used to pay off existing debt generated by construction of BBC improvements and secured, in whole or in part, by the BBC Lease. A portion of the loan would be used to hire architects and consultants to work on the proposed redevelopment of the BBC property and the remainder of the funds would remain with IBC. The City Attorney outlined the potential impact on City interest, stating the proposed transaction, and the legal documents to be signed by the City are, with the exception of the amount of the loan, similar to previous proposals. However, the relatively large amount of the loan has the potential to impact the City in the event a fire destroys the buildings on site late in the term of the Lease. While the Lessee has an obligation to rebuild under terms of the 1986 Lease, reconstruction may not be feasible if the remaining lease term is short. The lender may have no obligation to use insurance proceeds to rebuild the Club if it can demonstrate use of the money for that purpose would impair its security interest. If it isn't financially feasible for the Lessee to rebuild because few years remain on the Lease, the same will hold true for the lender. The larger the Volume 43 —Page 112 Balboa Bay Club • • CITY OF NEWPORT BEACH MINUTES P0� March 27, 1989 loan, the more likely it is the lender can demonstrate that its security interests are jeopardized if it uses insurance proceeds to rebuild all or a portion of the structures on site. The documents proposed by the lender are not entirely consistent with provisions of the Lease. For example, the proposed consent form gives the lender the right, in the event it is forced to foreclose the deed of trust because of a default, to assign the Lease to certain institutions without the consent of the City of Newport Beach. More importantly, the proposed consent to assignment authorizes the lender to apply fire insurance on their agreement with the lender. Finally the lender is entitled to a "new lease" (with the same terms and conditions) in the event IBC breaches the Lease and the lender is unable to cure the default. As to legal authority to refuse to consent to assignment, the City Attorney stated that the 1986 lease authorizes the City Manager to approve an assignment of the leasehold interest as collateral for any bona fide loan so long as the proposed encumbrance will not in any way subordinate the City's interest in the leased premises and the proposed encumbrance is subject to each and all of the terms and conditions in the Lease. IBC also has the right to request City Council approval of any proposed encumbrance and Council approval cannot be unreasonably upheld. Since certain terms and conditions of the proposed assignment are not consistent with related provisions in the Lease, Council approval is required. The Council must have a "commercially reasonable objection to the assignment" to justify a refusal to consent. The Council must exercise its discretion in good faith and in accordance with fair dealing. The City Council must look to potential adverse impacts on its interests, not any benefit that might accrue to the Lessee. The City Attorney further stated that his report was written to give the City Council legal justification to deny the proposal if it wishes, but it does not mean that it should be denied as a matter of policy or good business reasons. He believes that certain minor changes should be made in the proposed Volume 43 - Page 113 Balboa Bay Club COUNCIL MEMBERS " '* " S\ c1, gy0 ;.;0 9`00V !61 1 9 � CITY OF NEWPORT BEACH March 27, 1989 MINUTES Volume 43 - Page 114 Balboa Bay Club documents to ensure that the City's fee interest in the property is not subordinated and the City's interest in the property is otherwise fully protected. • In response to question raised by Council Member Turner, the City Attorney stated that if the City were to "unreasonably" withhold their consent to assignment, and the BBC chooses to litigate that refusal, there could be a chance of exposure for a substantial amount of money. In the event of a default on the part of the BBC, providing the consent to assignment is approved, the City is not obligated in any way to pay off the loan. He also commented that the proposed Consent to Assignment is totally independent of the proposed MOU and the proposed redevelopment, which will be clarified in the resolution approving said Consent to Assignment. Discussion ensued relative to the proposed $30 million loan, wherein Council Member Hart stated that whenever the City has consented to previous loans to the BBC, those monies were used "strictly for something going on at the • BBC." Whereas in this instance, the parent company (IBC), is asking the Council to approve its assignment of the 1986 BBC Lease using the subject City property as collateral; and therefore, she felt that there needed to be a clarification as to how the $30 million will be spent. Council Member Turner stated that pursuant to the present lease agreement with the BBC relative to insurance proceeds,. it states that if a disaster occurs during the last five years of the lease, and if, for example, the BBC were to burn down and the operators choose not to rebuild, those insurance funds would come to the City. Also, should the BBC default on their lease, the City then steps in leaving the lender behind; in essence, putting the City in a primary position. In response to question raised by Mayor • Pro Tem Plummer regarding previous refinancing proposals by the BBC, the City Attorney stated that the newly proposed Consent to Assignment would Volume 43 - Page 114 Balboa Bay Club • CITY OF NEWPORT BEACH EMBERS MINUTES �9y9�n0 � Gip A � March 27, 1989 to INDEX supersede the 1982 Consent, and the Balboa Bay reason for the limit of $14.5 million at Club that time, was that there were a series of requests from the BBC, all of which involved refinancing plans, that came before the Council under the provisions of the "old" lease which did not give the City Manager authority to consent. In addition, to avoid constant requests from the BBC to the Council whenever there was any minor change in financing of the Club, a provision was put in the document that if refinancing took place within that $14.5 million limit, the BBC did not have to come back to the City Council for approval. Mayor Pro Tem Plummer stated when the City extended the BBC Lease in 1986, the minutes reflect that the request was based on their desire to complete a specific plan for the Club and upgrade its facilities; and therefore, she was having a difficult time in "digesting" the current request for a $30 million loan as it relates to the 1986 lease extension. Following additional comments by the City Attorney, the Mayor requested those wishing to address the Council to come forward at this time. William gay, Chairman of the BBC, responded to some of the concerns raised earlier in the meeting, indicating, in i part: "1) When the City renewed their lease in 1986, there was no provision in the document that specifically called for anything other than the City not to unreasonably withhold its consent on financing. The reason for the $14.5 million limit was for refinancing an earlier debt; "2) They are requesting the City Attorney be given the authorization to demonstrate that the BBC is in no way infringing on the rights of the City to have its fee interest unsubordinated; "3) As to whether the proposed financing impedes their ability to do further financing, they do not feel it does, inasmuch as this is a situation where IBC, parent to the BBC, is borrowing money at a parent Volume 43 - Page.115 CITY OF NEWPORT BEACH EMBERS \et-00 A0�� , March 27, 1989 MINUTES company level. One of the assets it is hypothecating for this purpose is the BBC Lease. Concurrently the parent company is • pledging other assets in very substantial amounts. They have not specifically listed how they intend to use the funds, due to the fact it is not required in the lease; however, a large amount of the funds will be used to retire an existing debt on the BBC. If they are able to proceed with their redevelopment plan for the BBC, the lender has informally agreed to increase their financing in the future for that purpose; "4) Relative to the proposed MOD which was introduced at the March 13 City Council meeting, they are withdrawing the document from the previously scheduled Council meeting of April 24 in order to completely separate that transaction from the proposed Consent to Assignment and refinancing proposal; • "S) Regarding comments made by the City Attorney pertaining to insurance, they do agree there may be some points that need to be clarified in the proposed Consent document; however, they felt that the new insurance provisions were a substantial improvement for the City's position, inasmuch as a variety of protective requirements were increased and earthquake insurance was added." Mr. Ray stated that it is their desire to negotiate the items of concern, as this transaction is very important to them as well as the timing. If they cannot complete the transaction as contemplated, it will cost them a substantial amount of money and, they will have to "scramble" to avoid being in default under existing loan agreements previously approved by the City Council. Janie Arnold, 1701 Highland Drive, • addressed the Council and indicated she felt more information was needed regarding the subject request of the BBC, and reminded the Council to keep in Volume 43 - Page 116 Balboa Bay Club • • Motion All Ayes 0 x CITY OF NEWPORT BEACH EMBERS MINUTES w 9y9�ro� � G� March 27, 1989 9 INDEX mind the "highest and best use" for the Balboa Bay property. She stated she had concerns Club regarding the current lease arrangements; James Irvine's intentions for the property when deeded to City; purchase of the Irvine Coast Country Club; the Tidelands Trust issue; and the Terrace Apartments located at the BBC. Sid Soffer, 900 Arbor Street, Costa Mesa, addressed the Council and asked questions of the City Attorney relative to transfer of tenants rights. Carol Brown, 222 Coral Avenue, Balboa Island, addressed the Council and stated that due to the losing of open space and access areas to the water to the south, the Council may wish to consider whether or not apartments is still the best use for the subject bayfront property when the BBC lease expires. Irene Black, 1646 Irvine Avenue, addressed the Council and discussed the lease extension relative to the Tidelands Trust; improvements free of encumbrances; and insurance indemnification clauses. In response to the above, the City Attorney stated that the only thing being pledged to security is the leasehold interest; there are no encumbrances contemplated by this transaction or any other transaction on the real property itself; and the 1986 lease does address Tidelands issues, especially as they relate to the dispute concerning the mature of the property underlying the Terrace Apartments. Following consideration, motion was made to authorize the City Attorney, and the City Auditor, to review and revise where necessary, the proposed documents for consideration on April 10, 1989. 3. Report from the Planning Department U/P 3342 concerning public hearing scheduling for Emerald Council review of request by EMERALD Assoc. ASSOCIATES, Newport Beach for: (88) TRAFFIC STUDY NO. 54 - Request to Trfc Stdy approve a traffic study so as to No. 54 permit the construction of an 85 unit elderly personal care facility on property located at 3901 East Volume 43 - Page 117 L 0 Motion All Ayes 0 Motion All Ayes 0 x x MINUTES March 27, 1989 Coast Highway, Corona del Mar; zoned P -C; AND USE PERMIT NO. 3342 - Request to permit the construction of an 85 unit elderly personal care facility on property located in the P -C District. The proposal also includes a request to allow a portion of the structure to exceed the 32 foot basic height limit in the 32/50 Height Limitation District; a request to establish an off - street parking requirement based on a demonstrated formula; a modification to the Zoning Code so as to allow the use of tandem parking spaces in conjunction with a full -time valet parking service; and the acceptance of an Environmental Document. The City Clerk advised that a letter was received this date from Jon E. Christeson, Vice President, Emerald Associates, requesting the public hearing date be changed to April 24, 1989; and there being no objections, motion was made to schedule the public hearing for April 24, as requested. 4. Report from the Planning Department regarding MODIFICATION NO. 3514, a request to permit the construction of a 13± foot high satellite dish antenna which will encroach three feet into a required four foot side yard setback, approved by the Modifications Committee on February 28, 1989 for 1633 Bayside Drive, Newport Beach, zoned R -1. Motion was made to schedule public hearing on the above item for April 10, 1989. 5. Report from the Marine Department regarding HARBOR PERMIT APPLICATION NO. 259 -1 of Wallace Hunt to revise the residential pier and float bayward of 1 Collins Island. Council Member Watt advised that the Tidelands Affairs Committee has reviewed the subject application and visited the site; however, due to concerns raised since that time, she would recommend this item be referred back to the Committee for further report. Volume 43 - Page 118 Emerald Assoc. Mod No. 3514 (94) Harbor Permit Apli#259 -1 (51) CITY OF NEWPORT BEACH MINUTES n � 0� ,9'* March 27, 1989 Attorney Bruce Bevan, representing his wife, Sharon Bevan, 106 S. Bayfront, addressed the Council and discussed the proposal. He stated that there are three residents who are "violently" opposed to the request, and if this item is going to be deferred, he would like to be notified as to when it will be reconsidered. In addition, he expressed that Tony Melum, Tidelands Administra- tor, was a very helpful and amiable City employee. Thomas C. Simandl, 100 S. Bayfront, addressed the Council and requested that he also be notified when this item will be back before the Council. Motion x There being no further comments, motion All Ayes was made to refer this application back to the Tidelands Affairs Committee for report on May 8, 1989. 6. Report from Marine Department regarding Harbor HARBOR PERMIT APPLICATION NO. 105 -117 by Permit PACIFIC BELL to construct concrete Apli #105 - coverings over existing telephone cables 117 at the street end at the corner of (51) Bayside Drive and Bayside Place. Carolyn Martin, 109 Bayside Place, • addressed the Council and stated she has no objection to Pacific Bell covering the existing cables; however, she is concerned that the 4 foot high abutment will cause more problems with silt than currently exists, and that they will not j be protected from possible storm drain damage. The Public Works Director commented that the proposed encasement by Pacific Bell is located perpendicular to the bulkhead and parallel to the storm drain outlet, and approximately 20 feet away from the storm drain. He did not feel the encasement of the cable would materially affect the behavior of the storm drain discharge, or the sand regime in the Cove; and therefore. the proposed work would not be detrimental to slip owners in the area. Howard Margin, 109 Bayside Place, addressed the Council and concurred in the remarks of his wife. He stated that • they have had to dredge their slip a number of times due to silt coming from the Spyglass area to Carnation Cove. Volume 43 - Page 119 M Pon All Ayes Motion All Ayes Motion All Ayes • ix CITY OF NEWPORT BEACH MINUTES 0 y9 poi,, f`9 A � March 27, 1989 The City Manager stated that the Public Works and Marine Departments have been working on this project, and are of the opinion that the encasement will be of great benefit; and therefore, have recommended approval. x In view of the foregoing, motion was made to approve the application, subject to the conditions in the staff report. 7. Application to Present Late Claim of Michael J. Schroeder. x Motion was made to defer action concerning the above claim to April 10, 1989, as recommended by the City Attorney. 8. Report from the Business License Supervisor regarding SPECIAL EVENTS APPLICATION NO. 89 -084 for use of public beach at 1130 West Ocean Front on Saturday, April 15 from 10:00 a.m. - 3:00 p.m. for a birthday party by Carolyn Blevins. Carolyn Blevins, applicant, addressed the Council in support of her request. She stated she would like to have a "Moon Bouncer" for the children on the beach, but was not sure whether her request had received approval from the Police Department. She added that she had also obtained the necessary liability insurance required by the City. The City Manager advised that it is the recommendation of the Business License Supervisor that the application be approved with the "Moon Bouncer," subject to the conditions enumerated in the staff report. Motion was made to approve the above recommendation. H. ORDINANCES FOR ADOPTION: None. I. CONTINUED BUSINESS: None. Volume 43 - Page 120 Schroeder (36) Permit /Spcl.. Evnts(65) Apli#89 -084 a�\ \G 0 C CITY OF NEWPORT BEACH MINUTES March 27, 1989 J. CURRENT BUSINESS: None. Meeting adjourned at 9:05 p.m. The agenda for this meeting was posted on March 23, 1989, at 9:38 a.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Mayor ST: r. Volume 43 - Page 121