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HomeMy WebLinkAbout05/08/1989 - Regular MeetingCOUNCIL MEMBERS G \fkoon �}f �p G ey0 0sent x x Motion All Ayes Motion All Ayes C CITY OF NEWPORT BEACH MINUTES REGULAR COUNCIL MEETING PLACE: Council Chambers \ TIME: 7:30 P.M. DATE: May 8, 1989 x x x x x X x Tex Griffith, President of the Newport —Mesa Board of Realtors, presented the California Association of REALTORS GUIDELINES booklet concerning State and Local Housing. I A. ROLL CALL. B. Reading of Minutes of Meeting of April 24, 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 pursuant to the Municipal Improvement Act of 1913 concerning UNDERGROUND UTILITIES IN CORONA HIGHLANDS (proposed Assessment District No. 57). Report from Public Works Department Protest letters from owners of 55 parcels of property. Support letters from owners of 12 parcels of property. The City Manager commented that the work pertaining to the subject assessment district has been ongoing for two years, and subsequently a petition was submitted to the City Council representing in excess of 61% of the property owners requesting the creation of the district to underground the utilities in Corona Highlands. He added that as the City receives comments from affected parcel owners, staff has analyzed the valid responses and there is sufficient concern as to the manner in which the assessments are spread; therefore, it is recommended that the City Council open the public hearing tonight, and continue it to June 26 to permit an additional analysis of the assessments, after new assessment notices are mailed. The Public Works Director responded that the total number of protests received are 55 out of 185 parcel owners in the district, representing 27% of the district and does not constitute majority protest. He added that the percentage of protests will be Volume 43 — Page 166 Underground Utilities/ Corona (89) 57 I� L • CITY OF NEWPORT BEACH MINUTES tfa C S JS\4pp i � � May 8, 1989 reassessed at the June 26 continued public hearing with a final report to the City Council; and referred to the wall maps displaying the original petitions, the locations of the protests, and another map showing the basis of the units of benefits as is proposed under the current formula. He further stated that the assessment engineer could not be at tonight's meeting; however, the legal counsel is present to answer any questions by those people who will not be able to be . present at the June 26 continued public hearing. Roy Giordano, 626 Seaward Road, addressed the.Council concerning the revised method of assessment; the new resolution of intention; the revised engineer's report; and in his opinion, the most critical is the new bid on the bonds. He stated that in fairness to all of the parcel owners of Corona Highlands the entire matter be reviewed; there be a subsequent hearing with the association members who wish to attend; and an opportunity for anyone who wishes to file a new protest based on the current circumstances. The Public Works Director, in response to Mr. Giordano, stated there will be a public meeting similar to the one that was held on April 25, so that everyone is not only fully informed, but they will have an opportunity to voice their opinion and to ask questions in an Informal setting. With respect to setting aside the previous protests, he deferred his response to Legal Counsel, Mackenzie Brown. Mackenzie Brown, Law Firm of Brown and Diven, 18 Corporate Plaza, addressed the Council, and stated that rather than start over with a new hearing, they have discussed continuing the public hearing with the bond purchaser, Miller and Schroeder, in order to keep the bid proposal at 7.10%. which is a very favorable proposal. He added that to start over would extend the process another 45 - 60 days, but if the public hearing is continued, the bond purchaser has agreed to stay with this proposal, and possibly only a slight adjustment if the bond buyer index goes up. He stated that they will be submitting•a revised boundary map, which will be filed with the County Recorder; file a modified Volume 43 - Page 167 Dist#57 I� U :® CITY OF NEWPORT BEACH ;,USERS MINUTES tP f9� C0 4,Jt r G� � � N May 8, 1989 INDEX engineer's report which is necessary in Assessment . many cases where there are modifica- Dist#57 tions, and based upon that, notify the property owners with a 20 -day mailing period, prior to the proposed continuation date of June 26. He stated that another reason for the continuation is to conclude the proceedings before the cost goes up by reason of a possible change or increase from the Edison Company contract for services, which has a time limit. Jim Kennedy, representing Southern California Edison Company, addressed Council Member Sansone's inquiry regarding what period of time their current bid is valid for, stating that their letter mailed on February 12, 1989, indicated a 90 -day period; however, in view of the modifications they will go to June 26 at the same price without a change. He added that if it goes somewhat beyond the June 26 date, they would have to give a new bid. In answer to Council Member Turner's inquiry regarding how the protests that have already been made will be registered, Mr. Brown commented that the protests that have been validated (27 %) will stand as of record, and if the property owners, after receiving the new notices wish to withdraw their protests, the statute still provides for that opportunity, so that at the June 26 meeting the final computations will be reported on the written protests received. He added that the new notices will go out, and if nothing changes with the protests, they still would be starting with the 27 %, and after receiving testimony on June 26, the formal and final report will be made on the protests received. James D. Schindler, 409 Cabrillo Terrace, addressed the Council with the following concerns: - The assumption that the majority of property owners have approved this project based on a petition that was circulated two years ago is not valid because it did not include any cost figures,. or details; - The requirement for those in opposition to submit written objections in order to be counted in the decision making process without a corresponding requirement on the part of those in favor, prejudices the outcome in favor Volume 43 - Page 168 C Motion El CITY OF NEWPORT BEACH EMBERS MINUTES \n tV May 8, ] 989 INDEX of the proponents, and there is always a Assessment certain percentage that will not commit, Dist#57 therefore, abstention is not tantamount to automatic approval; - Because of the area factor being used in computing the preference, owners of large parcels carry more weight in the decision making process, and is in contradiction to the democratic principle of one man, one vote; - Retired persons living on fixed incomes may, without their consent, be compelled to go along with the project in spite of the imposition of a very large financial burden; - Property owners along the upper terraces who have the highest property values because of the views, and who will obviously benefit the most in the removal of the poles, are not paying their fair share of the project cost in relation to the benefits received. Some property owners, notably those whose views are out back over the Canyon, and who have no poles are still being required to pay full assessments; - Because the hookup cost, which is borne by the homeowner, was not included or mentioned in the notice from the City, they are being asked to commit to a project without knowing its full cost, and such additional costs could be substantial; - In conclusion, Mr. Schindler urged the Council to reject the "flawed" plan because of the inequities, prejudices in its concept, and because it imposes a genuine hardship on many retired residents on fixed incomes. X Motion was made to continue public hearing to June 26, 1989; and direct staff to bring back engineer's revised report and Resolution of Intention on May 22, 1989. Council Member Watt looked to staff to provide information to her questions dealing with Council's discretion toward: (1) the minimum standard to protect people when assessed and the fact that the petitions received two years ago are being taken as a basis for "yes" votes before the costs to the property owners would be known; and (2) the owners of large parcels who get a larger vote and bigger benefit being assessed the same as .smaller parcel owners. Volume 43 - Page 169 LL All Ayes 0 CITY OF NEWPORT BEACH MINUTES 9 9'PAOt � May 8, 1989 The Public Works Director, in answer to some of Council Member Watt's inquiries, stated the following: With respect to the original petitions, and the 60% in favor, it does not require the Council to make a final determination to form the district, nor does it bind anyone to a district being formed, but it does have to do with the procedure to be followed. The Council has within its jurisdiction to either form or not form the district regardless of the percentage of favorable signatures that petition the district. The Council, however, must abandon the district if more than a majority protest is received. If less than a majority protest is received, (less than 50 %) the Council may elect, based upon the testimony received and on its assessment of the facts, to proceed with the formation of the district. The questions raised about the formula will be answered on June 26. The motion was voted on and carried. Council Member Sansone stated that he has some concerns about the following: There are some people who cannot afford the assessments, and between now and the June 26 meeting it is very important for the City to address this problem. Another problem is the hookup cost that is separate from the undergrounding cost. The hookup goes from the central undergrounding point to the house, and in some cases this would affect and go underneath driveways, sidewalks, through or around garages, etc., and can be very complicated and costly. 2. Mayor Strauss opened the public hearing and City Council review of MODIFICATION NO. 3527, a request of HERBERT STRICKER, 3109 Clay Street, approved by the Modifications Committee on April 4, 1989, to permit the construction of 6 ft. high stucco walls, wrought iron fencing and gates varying in height from 6 ft. to 7 ft. 6 inches t, which will encroach 5 ft.f into the required 20 ft. front yard setback at the above address, with the condition that the development shall be in substantial conformance with the approved plot plan. Report from the Planning Department. Volume 43 - Page 170 Assessment Dist#57 Modificatn No. 3527/ Stricker (94) L 0 CITY OF NEWPORT BEACH A May 8, 1989 Motion x Ayes x x x x x x Noes x E MINUTES The City Manager referred to the map attached to the staff report, and stated that on April 4, the Modifications Committee approved an encroachment of 5 feet into the front yard setback of ZO feet, and a fence 6 foot high with a wrought iron addition on top of leg ft. Council Member Hart asked for Council review on the proposed project, because consistently in Newport Heights there has been a policy of not allowing any fences within 8 ft. from the curb back into the yards, and only 3 ft. in height. Herbert Stricker, 3109 Clay Street, applicant, addressed the Council, stating that he wanted to replace a termite — riddled wooden fence that was 6 ft, high with a stucco and wrought iron fence of the same height. He added that the fence would not only enhance his property but the neighborhood, while providing his property with security. He further stated that he has 6 ft. block walls on both sides, approved by a previous modification. Hearing no one else wishing to address the Council, the public hearing was closed. Discussion ensued, wherein motion was made to approve a 3 ft. high fence, anywhere from 8 ft. back from the curb. 3. Mayor Strauss opened the public hearing and City Council review of USE PERMIT NO. 3347, a request of BARRY AND MARJORIE LOUD, Corona del Mar, (unanimously approved by the Planning Commission on April 13, 1989) to permit the construction of a second dwelling (Granny Unit) on property located at 307 Narcissus Avenue; zoned R -1. The proposal also includes a modification to the Zoning Code so as to allow the construction of three bay windows on the second floor which encroach 18a inches into a required 4 ft. side yard setback. Report from the Planning Department. Volume 43 - Page 171 U/P 3347 Loud (88) E • CITY OF NEWPORT BEACH MINUTES C o� 9N May 8, 1989 The City Manager, in summary, recalled the history of legislation that permitted Granny Units under certain circumstances on an R -1 lot, which would make two units on the same lot, with certain requirements, i.e., the age of the inhabitant(s) and that they must be related to the occupant of the main dwelling. He added that the City recently adopted an ordinance regulating the conditions of Granny Units, and the Planning Commission found that the subject request met all of the conditions of the ordinance with the exception that the Zoning Code does not permit the applicant's request for second floor bay windows extending out approximately 18 inches from the face of the structure. The City Attorney informed the Council that the Planning Commission requested his office look into the possibility of revising the Granny Unit ordinance to require that the occupant in the second unit be related by "blood" marriage to the owner of the property and occupant of the principal unit; and also examine the feasibility of increasing the minimum lot size for Granny Units to 5,500 ft. While they have not completed their review of the foregoing, the City Attorney, stated that their preliminary study indicates the City does have the power to increase the minimum lot size to 5,500 ft. per lot, and this would, for purposes of old Corona del Mar, eliminate the possibility of constructing a Granny Unit on parcels which consist of I' lots, adding that these modifications will be coming to the Planning Commission on May 18. In answer to Council Member Turner's inquiry, the City Attorney stated that there is no specific requirement under State law, but a policy decision on the part of the Council that the person owning the property occupy the principal unit. He added that this particular property was in the name of the parent and a quitclaim deed has been prepared transferring title to the son and the mother as joint tenants. Barry Loud, 307 Narcissus, applicant, addressed the Council, stating that the main opposition at the Planning Commission hearing regarding the subject use permit has been addressed in his Volume 43 — Page 172 U/P 3347 r,l n Motion • x CITY OF NEWPORT BEACH MINUTES C qr 6 9Gq� �� 9a �pf May 8, 1989 compliance with all of the requirements of staff and the Planning Commission regarding parking, traffic, and density. Ron Hagerthy, 303 Narcissus, addressed the Council stating that he represents several other property owners in.the area, who also attended the Planning Commission hearing. He commented that they are not objecting to the subject use permit, but vigorously oppose the City's ordinance as it relates to old Corona del Mar. He referred to his hand -out illustrating statistics that the City has already provided housing for those people 60 years and older. In addition, he commented on the history of disregard for the Zoning Ordinances, which results in an open invitation to continue the abuse of illegal rental units. In summary, he stated that the foregoing remarks of the City Attorney be considered seriously regarding increasing the minimum lot size to 5,500 sq. ft., in old Corona del Mar, except for those lots that are dual lots; and that there should be some consideration given to the verification of occupancy. Joseph Sanchez, 306 Narcissus, addressed the Council, stating he presented his letter to Council Member Sansone regarding illegal add -on rental units, and that today's issue on the Granny Unit is but one manifestation of the problem that exists in old Corona del Mar; particularly Narcissus, Orchid Avenue, bounded by Pacific Coast Highway and Seaview. He stated that presently 25 -30% of the property in this area is occupied by illegal rental units and the area is rapidly becoming an R -2 zone. He strongly recommends that the City increase the minimum lot size from 5,000 to 5,500 or 6,000 sq. ft., and requested more aggressive action against the blatant use of illegal rental units. The public hearing was closed after it was determined that no one else wished to address the Council. After clarification from the City Attorney, motion was made to approve Use Permit No. 3347, subject to the Findings and Conditions contained in Exhibit "B" of the staff report with the following modification to - Volume 43 - Page 173 U/P 3347 LL r] All Ayes Motion All Ayes CITY OF NEWPORT BEACH MINUTES O L ,\Co-to �f 9.► no May 8, 1989 x Condition No. 3: "Prior to final inspection of the building improvements, that the applicant.shall record a covenant, the form and content of which is acceptable to the City Attorney, binding the applicant and successors in interest in perpetuity so as to limit the occupancy of the second dwelling unit to one or two adults 60 years of age or over, and committing the permittee and successors to comply with current ordinances regarding Granny Units. Said covenant shall also contain all conditions of approval imposed by the Planning Commission or the City Council." Discussion ensued, wherein Council Member Turner, upon agreement from the maker of the motion, asked that the following modification be made to - Condition No. 5: "That the applicant shall provide evidence of legal ownership of the property prior to the issuance of building permits, and that the primary residence shall be continuously occupied by the legal owner of the property." The motion, as amended, was voted on and carried. E. PUBLIC COMMENTS: None. F. CONSENT CALENDAR: The following actions were taken as indicated, except for those items removed. 1. ORDINANCES FOR INTRODUCTION - pass to second reading on May 22, 1989: (a) Proposed ORDINANCE NO. 89 -10, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 11.08.030 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO USE OF THE BEACH AT NIGHT. Volume 43 - Page 174 U/P 3447 Ord 89 -10 PB &R Recreation (62) r: CITY OF NEWPORT BEACH MINUTES n � G� to May 8, 1989 (Recycled report from Parks, Beaches & Recreation Director, dated February 23, 1989) (b) Proposed.ORDINANCE NO. 89 -11, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING THE NEWPORT BEACH MUNICIPAL CODE SECTION 14.12.090 PERTAINING TO THE BASIC WATER QUANTITY CHARGES. (Report from Utilities Director) (c) Proposed ORDINANCE NO. 89 -12, being, AN ORDINANCE OF THE CITY ' COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 14.24.065 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO SEWER USE CHARGE. (Report from Utilities Director) (d) Proposed ORDINANCE NO. 89 -13, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 5.12.080 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO GROUNDS FOR REVOCATION OF TAXI CAB CERTIFICATES OR PERMITS. (Report from Business License Supervisor) 2. RESOLUTIONS FOR ADOPTION: Ord 89 -11 Utilities Wtr /Swr (89) Ord 89 -12 Utilities Swr Use Chrg (89) Ord 89 -13 Taxi Cab Permits (86) (a) Resolution No. 89 -30 supporting the legislation passage of Senate Bill 1221 which SB 1221 would increase the REFUND VALUE OF Res 89 -30 CERTAIN BEVERAGE CONTAINERS. (48) (Letter from the Californian's Against Waste and copy of SB 1221) (b) Resolution No. 89 -31 expressing support for the proposed STAGE II EXTENSION OF THE COSTA MESA FREEWAY (ROUTE 55) FROM 19TH STREET TO INDUSTRIAL WAY. (Letter from Mayor Buffs requesting support) Volume 43 - Page 175 CMesa Frwy Extnsn PhII /Rt 55 Res 89 -31 (74) CITY OF NEWPORT BEACH MEMBERS 'OA S 0 �9 \$�,p May 8, 1989 MINUTES 3. CONTRACTS /AGREEMENTS: (a) Removed from the Consent Calendar. (b) Removed from the Consent Calendar. (c) Approve and authorize the Mayor and 0/C Fire City Clerk to execute an Agreement Dpt /CNB that will continue the FIRE AND Rescue Srvs RESCUE SERVICES FROM ORANGE COUNTY C -2208. FIRE DEPARTMENT. (Report from Fire (38) Chief) (d) Approve amendment to LITTER CONTROL 0/C Juvnl PROGRAM (Contract No. 2286) for Crt Wrk continued use of Juvenile Court Prgrm /Ltr Work Program; and authorize the Cntrl Mayor and City Clerk to execute C -2286 subject amendment. (Report from (38) General Services Director) 4. COMMUNICATIONS - For referral as indicated: (a) To Utilities Department for Utilities inclusion in the records, memo from (89) Utilities Director concerning letter expressing thanks for .' presentation of certificate of appreciation on behalf of the efforts of Fred W. Gilbert, retired General Manager of COASTAL MUNICIPAL WATER DISTRICT. (b) To Public Works Department for PW inclusion in the records, letter (74) from Dr. Jan D. Vandersloot expressing thanks to the City for abandoning AVON STREET PARKING LOT PROJECT. (c) To Aviation Committee, letter from Aviation agent for Eastbluff Homeowners Cmte Community Association concerning (24) steps to prevent "GENERAL AVIATION AIRCRAFT" from flying over Newport Beach's populated areas. (d) To Fire Department for inclusion in Fire the records, letter of appreciation (41) from Louanna and Guy Entrekin for the PARAMEDICS prompt and professional action during an emergency on April 20. (e) To Police Department for reply, 10 PD ® letters from Balboa Peninsula (70) residents requesting more drastic measures to curb CRUISING. Volume 43 - Page 176 E CITY OF NEWPORT BEACH MINUTES w9 y9�oo� a May 8, 1989 (f) To Parks, Beaches and Recreation PB &R Department for reply, letter from (62) Andrew L. Thompson with accompanying copies of 8 letters from residents of Jasmine Creek Community, expressing opposition to the proposed installation of TENNIS COURT LIGHTS. (g) Removed from the Consent Calendar. (h) To Planning Department for Planning inclusion in the records, letter (68) from Jeffrey P. Massnick in opposition to HOAG SIGNAGE PERMIT NO. 1421(A). Note: After agenda printed, received letter from Balboa Coves Community Association in opposition. (i) To Aviation Committee for inclusion lAviation in the records, Balboa Peninsula Cmte Point Association letter nominating (24) Mary (Mimi) Singleton to a permanent board seat on the CITY' AVIATION COMMITTEE. 5. COMMUNICATIONS - For referral to the City Clerk for inclusion in the records: None. 6. CLAIMS FOR DAMAGES - For denial and confirmation of the City Clerk's referral to the claims adjuster: (a) Hertz Corporation for Karen Thurman alleging damage to vehicle as a result of collision with City Police Department vehicle on Balboa Boulevard on December 31, 1988. (b) Jacqueline Kay Herrara, aminor, through her Guardian Ad Litem Robert L. Herrara, for personal injuries sustained as a passenger in a vehicle being driven northbound in Eastbluff, that collided with a light pole north the intersection with Backbay on November 5, 1988. (36) Hertz Corp Thurman Herrera (c) Frank Kerns, Joyce Elliott and Manuel Kerns/ Castello for recovery of personal Elliott/ property allegedly left in vehicle, Castello which was towed from scene of accident on March 19, 1989. Volume 43 - Page 177 U CITY OF NEWPORT BEACH EMBERS MINUTES ` G� � 9A A �W May 8, 1989 INDEX (d) John Luckett alleging he was given Luckett citation in error near Davey's Locker /Main Street in December, 1988; seeking reimbursement for loss of time and earnings, damages for stress, etc. (e) Mohammad Ali Sohanaki seeking Mohammad reimbursement for damages to Ali vehicle as a result of alleged Sohanaki towing error at 2702 Amalfi on March 14, 1989. For rejection: (f) Late Claim of American Fire and American Casualty as subrogee of Martin Fire /Cas/ Glynn Welsch for property damage as Welsch a result of City vehicle striking rear of a car pushing that car into their insured on June 27, 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 VACANCIES: (Report from the City Manager) None. 9. STAFF AND COMMISSION REPORTS - For Council information and approval: (a) Removed from the Consent Calendar. For Council information and filing: (b) Report to the City Manager Planning regarding ACTIONS TAKEN BY PLANNING Cmsn COMMISSION ON APRIL 20, 1989. (68) 10. PUBLIC HEARING SCHEDULING - May 22, 1989: (a) GENERAL PLAN AMENDMENT 88 -2(C) - A GPA 88 -2(C) request initiated by the City of Housing Newport Beach to revise the HOUSING Element ELEMENT OF THE NEWPORT BEACH (45) GENERAL PLAN as required by State law. (Report from Planning Department) Volume 43 - Page 178 E • CITY OF NEWPORT BEACH MINUTES C y \GIN May 8, 1989 (b) Report from General Services GS /1989 Director concerning APPROVAL OF THE Cnty Sld FINAL DRAFT OF THE 1989 COUNTY Wst Mgm Pln SOLID WASTE MANAGEMENT PLAN, and (44) scheduling public hearing. 11. FINAL MAP OF TRACT NO. 11937(Revised) - Approve the Final Map of Tract No. 11937, a request of REGIS CONSTRUCTION, INC., Newport Beach, subdividing 22.99 acres of land into one lot for a 138 unit residential condominium development, one lot for existing commercial use, and a residual parcel not for development; on property located at 1200 East Coast Highway, on the northeasterly corner of East Coast Highway and Jamboree Road; zoned P -C. (Report from the Planning Department) 12. TRACT NO. 11935 - Approve the improvement plans and specifications and accept the public improvements constructed in conjunction with Tract No. 11935 (2700 Pacific View Drive); authorize the City Clerk to release the Faithful Performance Bond (No. 6045462) and Labor and Material Bond (No. 6045462) in six months provided no claims have been filed. (Report from Public Works Department) 13. ENCROACHMENT APPLICATION OF WORTH PROBST - If desired, approve application to construct new retaining walls, winding stairway, and planters encroaching 27 feet into the public right -of -way adjacent to 3317 Ocean Boulevard, Corona del Mar, subject to: (a) No construction permitted under this approval that would not be permitted by the Zoning Code in front of setbacks; (b) execution of a nonstandard improvement agreement; (c) an encroachment permit from the Public Works Department; (d) a building permit from the Building Department; and (e) a survey by a licensed surveyor. (Report from Public Works Department) 14. SPECIAL EVENT APPLICATIONS - Uphold staff's recommendation to approve the following, subject to conditions listed in the staff report:' (a) Application No. 89 -055 - Temporary street closure for the 8TH ANNUAL SCENIC 5K RUN, old Corona del Mar on June 10, 1989, from 7:00 - 10:00 a.m. Volume 43 - Page 179 Tract 11937 (Revised) Tract 11935 Permit/ Encrchm (65) Permit/ Spcl Evnt (65) Apli#89- 055 l • CITY OF NEWPORT BEACH MINUTES \0%\O rq-V0 C May 8, 1989 (b) Application No. 89 -118 - Ap111189 -118 Temporary street closure, Cliff Drive Park, for MEMORIAL DAY PICNIC, May 29, 1989, from 3:00 - 4:00 p.m. (c) Application No. 89 -119 - Use Apli1189 -119 of public beach by MAUI & SONS SURF CONTEST, at 54th Street, June 3 and 4, from 7:00 - 5:00 p.m. (d) Application No. 89 -127 - Use Apli1189 -127 of public beach by NEWPORT OUTRIGGER CANOE CLUB for canoe race on beach at 18th Street, on May 13, 1989, from 7:00 a.m. - 2:00 p.m. 15. HARBOR PERMIT APPLICATIONS - Uphold Harbor staff's recommendation for approval, Perm Apli subject to conditions listed in the (51) staff report for.the following: (a) Application No. 124-3400 - Ap1i11124- Lido Marina Village to revise 3400 their commercial docks bayward of 3420 Via Opporto. (Report from Marine Department) (b) Application No. 259 -1 - Removed from the Consent Calendar. 16. BUDGET AMENDMENT - For approval: BA -066 - $143,830 (Refer to agenda item F -3(b)) G. ITEMS REMOVED FROM THE CONSENT CALENDAR: 1. Report from Aviation Committee recommending approval of ENCROACHMENT PERMIT TO ALLOW THE INSTALLATION OF AN AIRPORT MARKER BEACON IN AN UNUSED SECTION OF UNIVERSITY DRIVE, as proposed by Public Works Department, was presented with recycled report dated April 24, 1989 from Public Works Department. The Council was advised that letters were received from Donald R. Segner, and Robert B. Olds, and petitions from residents in the vicinity of Eastbluff, regarding the subject airport marker beacon, Volume 43 - Page 180 (25) Permit/ Encrchm Marker Beacon (65) i • CITY OF NEWPORT BEACH MINUTES �yoo� � 4s1 May 8, 1989 The Executive Assistant, Ken Delino, addressed the Council, and used exhibits to illustrate the flight track which most commercial aircraft should take in departing John Wayne Airport. He commented for years the Council and staff have heard complaints from residents on both sides of the Bay that the commercial aircraft were straying from the flight track, and in an effort to solve the problem, the City asked the Orange County Board of Supervisors to look into some type of navigational device for assistance. He continued to illustrate that when the aircraft takes off, the pilot plugs in two radio frequencies on the dashboard in order to implement the turn, dialing in one radio frequency which gives him a distance from a certain marker (DME) that reads off the miles, and plugs into another instrument (VOR) that reads on needle, giving the pilot a compass direction from a certain point. He further explained that when the pilot sees the 1 mile DME position, and /or when it reads 118 on the other instrument, he makes the turn. He added that in working with the FAA, and County, the City Aviation Committee and the City's Consultant, Don Segner have proposed a simple marker beacon to assist the pilot in making the turn at the designated point with an audio signal and blinking light as a reminder. In conclusion, he stated the manufacturer of the equipment testifies that even though the marker beacon is in the proposed location which is short of the actual point, this signal can be manipulated within tolerances to allow the turn to take place where it is supposed to so that the pilot doesn't turn too early. In answer to Council inquiry, Mr. Delino stated that marker beacons are used all over the nation in a variety of circumstances and situations, and that no additional hardware or additional pilot training is needed, just simple instructions from the airline to the pilot. Dan Stringer, President of the Balboa Island Improvement Association, addressed the Council regarding the validity of the foregoing information, stating that the homeowners on Balboa Island, the Peninsula, Irvine Terrace, Sea Island; Promontory Point, Beacon Bay, (the lower end of the flight path) Volume 43 - Page 181 CITY OF NEWPORT BEACH MINUTES May 8, 1989 feel that the beacon may, or may not Encrch . narrow the zone of the planes taking off Marker to where it targets more of one Beacon particular segment of the population. He requested the Council propose to the Aviation Committee that if the marker beacon does go in, the study that Vince Mestre did be updated to determine if there is going to be a "zeroing" effect on more than one segment of the population. Bob Olds, 641 Vista Bonita, Eastbluff, Member of the Aviation Committee, addressed the Council regarding his letter to Council Member Turner with concerns that the marker beacon location was far short of the optimal, or desirable position, but stated he has been in contact with the marker beacon manufacturer and is aware that they can move the signal to a more appropriate position for warning. He explained that the residents in Eastbluff are sensitive to early turns, and each second means that the aircraft moves about 100 ft. to the east, or over Eastbluff. By means of a visual exhibit, he went on to illustrate that with the flight track already very close to Eastbluff, the aircraft that turn six seconds early, if it is induced to turn rather than go to the required turning point, means about two football fields in length the aircraft will move to the left, which is more than the distance between a normal track and the homes in Eastbluff, and that this was their reason for objecting to the initially planned installation. In addition, he explained that there are late and early turns now, and a properly placed beacon may improve and help reduce the potential for late turns; and therefore, asked Council's support to have the location and equipment perimeters such that the pilots are alerted approximately 3 to 3;1 seconds so that they will not turn too early thus affecting Eastbluff, and turn at the prescribed point to the benefit of Westcliff and Dover Shores. He also recommends that the City monitor the marker beacon so that if it doesn't work right it can be modified, fixed, or if necessary, withdrawn. Volume 43 — Page 182 i CITY OF NEWPORT BEACH EMBERS MINUTES i ` 9G D.�,r, 9� �,p dip May 8, 1989 INDEd Art Barlow, 2000 Vista Caudal, President Encrchm/ of the Eastbluff Homeowners Association, Marker addressed the Council, stating that they Beacon have 647 homes including those homes along the bluff area which is the very narrow point on the east side. He added that they are overflown many many times and get the greatest impact from noise in that area. Therefore, he stated that they support the beacon; however, they would like to see it go a little further down the Bay, and would like to have access to the City Council if there are problems with the marker beacon. Roy Englebrecht, 405 Vista Grande, addressed the Council, expressing that although it has taken five years for progress, he is thankful the residents will finally have a viable option. He stated it is important that the marker beacon be installed at 5,936 ft., which has been the location all these years during the study. He supports the beacon, and expressed his appreciation to the City staff, and Aviation Committee for their work, but cautioned that he is afraid in just the time it takes to adjust or readjust, there still will be jet planes over the elementary and high schools. Mary Singleton, 315 Sapphire, Balboa Island, Chairperson of Citizens for Air Route Equity, addressed the Council stating that in the last two years the people in the lower Bay area feel that the flight path has gone further and further to the east, so that now the areas of Sea Island, Irvine Terrace, and Corona del Mar are very seriously being affected. She commented that when Mr. Segner, attended an Aviation Committee meeting, he said that the pilot's reaction time is 1'k to 2 seconds, and the proposed six seconds before they even get to the proper point to turn is way too early. She stated that they are against the marker beacon, and feel the beacon itself, will adversely impact their area, elevate the problem of aircraft flying too far east as a result of the prevailing winds, and be affected by the proposed County's standard takeoff procedure if the early reaction timing is implemented. She suggested if the Council does approve the proposed installation, that possibly another beacon be installed lower down the way to keep aircraft over the water, Volume 43 — Page.183 CITY OF NEWPORT BEACH MEMBERS �► A9 y9'A C� 9� \�t�,D Grip May 8, 1989 or noise monitors on either end of Balboa Island, installed and maintained by the City. MINUTES Wayne Chase, 213 Sapphire, and 30 -year pilot, (Orange County Airport, and national airlines) addressed the Council referencing the map, and stated that the proposed marker beacon will not solve the problem of the prevailing winds. Jack Billings, 665 Via Lido Soud, President of the Lido Isle Community Association, addressed the Council in support of the marker beacon. He added that if there are other needs for controlled aircraft down the lower Bay, this is something that should be looked into. Pete Drummond, resident of Dover Shores and member of Aviation Committee, addressed the Council giving the following history: Some years ago he was appointed to work with the County and the FAA to try and control aircraft to go down the Bay on a positive flight track, but no such system ever emerged. The beacon was arrived at by way of a suggestion from a pilot, but they struggled to find a suitable site, and when they did, it took a long time for the County to get approval from the FAA. The FAA finally approved it on the basis that it was not a required navigation device, and simply to control the aircraft as desired by the City, but they would not pay for it. The County agreed to pay for it, and that is the reason that County funds were established. The site they selected then was a little different than the current proposed site because he and the City's consultant took the word of the County that it was the right location, and until one week ago they were not aware of this discrepancy. Since then, he has discussed with the manufacturer what could be done to the pattern, and as .a result found that the angle of the cone can be shaped to whatever width is needed at a given altitude, with some limits to this, and these are being explored. There is another system being discussed, and that is to modify the antennas being used.so that it would give a signal reducing the distance and the 6 or 8 second time range. It should be remembered that this is an alerting Volume 43 - Page 184 Encrchm/ Marker Beacon U it Motion x CITY OF NEWPORT BEACH MINUTES O ¢ 0f 9NMay 8, 1989 device, and the instructions from the FAA and the operating instructions that each airline furnishes to its pilot personnel does not include procedures for the marker beacon. Mr. Drummond, in summary stated there is every opportunity that the current location will work, and is an installation that is good. He, personally feels that the route down the Bay and over the water most of the time is a safer one, but unfortunately it does go over Balboa Island, and that the sound levels there are less than they are further up the Bay. As far as the Balboa strip is concerned, you have to cross it somewhere to get to the sea. Another thing that is good is that before the flights increase under Phase II, we should get this installation in and operating, get experience with it, and be sure it meets the requirements. Council Member Turner commented that there has been extensive testimony at tonight's meeting regarding the marker beacon, and an item which has been very thoroughly discussed during the past five years at the Aviation Committee meetings. He stated that among the numerous issues is that of noise abatement, and that the installation of the marker beacon is not a "panacea" insofar as changing the noise patterns on Balboa Island. He added that in supporting the marker beacon, he would hope this action not be interpreted to mean one section of the City's interest is being protected over another. He briefly commented on agenda item F -4(g), regarding the delayed thrust program designed for Balboa Island, and the FAA's response is that they will not support it because it is unsafe, but the City is still investigating this determination. In summary, Council Member Turner stated that he believes the Council should support the marker beacon; and therefore, made a motion to concur in the Aviation Committee recommendation . to approve ENCROACHMENT PERMIT to ALLOW THE INSTALLATION OF AN AIRPORT MARKER BEACON in an unused section of University Drive, subject to the five following conditions: Volume 43 - Page 185 Beacon CITY OF NEWPORT BEACH MINUTES May 8, 1989 1) The marker beacon shall be installed and operated in a manner which will enhance the ability of airline pilots to strictly conform to the then current approved departure procedure(s). 2) The County shall monitor the performance of the marker beacon, based on increases or decreases in the percentage of aircraft deviating from the then current departure procedure(s), and for the first year after installation, report its findings to the City Council on a quarterly basis with subsequent reports on an annual basis. 3) The County shall, as necessary, modify the trajectory or other operational characteristic of the marker beacon to ensure conformance with the then current departure procedure(s). 4) The City reserves the right to request that the County close the system down, provided that after a thorough technical evaluation of the system it is determined that the goals of the marker beacon are not being met. 5) Six months after the marker beacon has been installed and operating per specification, the Aviation Committee of the City of Newport Beach shall reevaluate the noise studies conducted by Mestre Greve Associates (January, 1989) by requesting that firm review the effects of the marker beacon as it pertains to noise abatement from the beacon location to the sea, with a specific emphasis on Balboa Island and the Balboa Peninsula, to determine if the beacon has caused a greater concentration of noise in any given area. Volume 43 - Page 186 Marker Beacon All Ayes Motion All Ayes Motion • CITY OF NEWPORT BEACH MINUTES �9 S9lkO* 9N May 8, 1989 x Discussion ensued regarding the intent of the foregoing motion, whereupon it was voted on and carried. 2. Report from Public Works Department Balboa Cvs/ recommending approval of agreement with Sod W1 Cnst/ Balboa Coves Community Association for BC C/A Agm BALBOA COVES SOUND WALL CONSTRUCTION, C -2591 was presented. 1(38) Discussion ensued, wherein motion was made to approve agreement with Balboa Coves Community Association for BALBOA COVES SOUND WALL CONSTRUCTION; and authorize Mayor and City Clerk execute, but bring back policy concerning mitigation of sound'walls to future study session for further discussion. 3. Report from Tidelands Affairs Harbor Committee recommending approval for Permit Wallace Hunt, Harbor Permit Application Apli#259 -1 259 -1, to revise the residential pier (51) and float bayward of #1 Collins Island, was presented. X Discussion ensued. wherein motion was made to bring back the application to the City Council on June 12; in the interim Council Members Hart and Watt to work with other City departments involved, i.e., Fire, Harbor Department, and the applicant regarding the welfare and safety of the adjacent property owners. Tom Simandl, 100 S. Bay Front, addressed the Council stating that there is only one solution to the problem, and that is to prohibit inside tie of any vessel at the One Collins Island dock, and if the proposed application is approved it will result in an unworkable compromise for the following reasons; *This is a navigable water way that has existed in this area for over 20 years, and it can only be preserved by not having a side tie; °The Orange County Harbor Patrol has commented that the proposed side tie restricts fire boat access to the docks at 100 and 106 S. Bay Front; Volume 43 - Page 187 ❑I Ayes • CITY OF NEWPORT BEACH VCIL MEMBERS iP� \Cotp 0 4q \y G1 j► 0� May 8, 1989 °In the event of a vessel emergency, i.e., sunken boat, sinking vessel, vessel leaking fuel, vessel.with no power, the vessel could not be towed from those docks because of the limited access caused by the side tie that is currently existing at One Collins Island; 'Because of a tidal tunnel effect, combined with prevailing westerly winds, a serious safety hazard exists. MINUTES In summary, Mr. Simandl stated that the application as it exists, does not address the following questions: "What happens if it is approved and the owner does not construct, i.e., does that 32 ft. sail boat get to stay there until the owner decides to do something with it? What about an obstruction during any other delay in construction; and also, what happens if the dock at 106 S. Bay Front side ties a boat - -the way the permit is currently worded it says that there has to be an 18 ft. six passage way between any boat side tied at One Collins and 106 S. Bay Front." The motion, as stated in the foregoing, was voted on and carried. Harbor Permit Apli#259 -1 4. Copy of letter to Ken Delino from JOHN Aviation WAYNE - ORANGE COUNTY AIRPORT Manager Cmte /John George A. Rebella regarding the FAA's Wayne Arprr response to the County's request to (24) consider a delay in the reapplication of thrust at the coastline, was presented. Dan Stringer, 700 S. Bay Front, representative of Balboa Island Improvement Association, addressed the Council, stating that they are very appreciative of the Aviation Committee and the City Council's effort on their association's behalf regarding the delayed thrust program, but also disappointed that the FAA is against the procedure. Council Member Watt stated that the two things that would help Balboa Island would be the delayed thrust and some change in the standard that would allow less noisy aircraft. Volume 43 - Page 188 CITY OF NEWPORT BEACH COUNCIL MEMBERS \,1, '° C �G � 4y 'yam May 8, 1989 Motion All Ayes r� Motion All Ayes x x MINUTES Following discussion, motion was made to approve the agenda action to refer to Aviation Committee, copy of letter to Ken Delino from JOHN WAYNE - ORANGE COUNTY AIRPORT Manager George A. Rebella concerning the FAA's response to consider a delay in the reapplication of thrust at the coastline. 5. Report from Public Works Department Wtr Mn Impr w /protest letter from J. T. Malloy, Back Bay/ regarding awarding CONTRACT NO. 2733 for Bayside WATER MAIN IMPROVEMENTS IN BACK BAY AND C -2733 BAYSIDE DRIVES, was presented. 1 (38) John T. Malloy addressed the Council stating that he objects to awarding the bid to Irvine Pipeline Company, Inc., for the subject project, inasmuch as there is an irregularity in their bid. The Public Works Director commented that Mr. Malloy is an excellent contractor and very professional; however, the intent of the bid from Irvine Pipeline is very clear and not ambiguous, and they were able to bid a lower price for the subject project. The City Attorney stated that he concurs in the remarks made by the Public Works Director, and that the Council has no ability today to award the contract to Mr. Malloy. He further stated that the Council's options are to either award to Irvine Pipeline, or reject all bids. Motion was made-to waive the irregularity in the bid documents of Irvine Pipeline Company, Inc.; approve Budget Amendment No. 066 for $143,830 (decrease in Unappropriated Surplus and increase and transfer in Budget Appropriations; Water Fund); award Contract No. 2733 to Irvine Pipeline Company, Inc., for a total price of $273,,631; and authorize the Mayor and 1 City Clerk to execute subject contract for WATER MAIN IMPROVEMENTS IN BACK BAY AND BAYSIDE DRIVES. H. ORDINANCES FOR ADOPTION: 1. Proposed ORDINANCE NO. 89 -8, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTIONS 7.04.020, 7.04.025, Volume 43 - Page 189 Ord 89 -8 Animal Regs (70) ROLL u Motion All Ayes 0 x CITY OF NEWPORT BEACH MINUTES May 8, 1989 7.04.030, 7.04.040, 7.04.055, 7.04.090, 7.06.010, 7.10.010, 7.20.020, and 7.20.050 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO REGULATION OF ANIMALS IN THE CITY OF NEWPORT BEACH, was presented for second reading with recycled report from Parks, Beaches & Recreation dated April 24, 1989. The City Manager summarized that both the Environmental Quality Citizens Advisory Committee, as well as the Parks, Beaches and Recreation Commission, have reviewed the foregoing ordinance, which modifies the present regulations. Mayor Pro Tem Plummer commented that the new section dealing with "Maintaining Sanitary Conditions," is a good regulation, but inquired about enforcement and penalties. The City Manager stated that if this section of the Municipal Code is violated, it is enforced by the Animal Regulation Officer who issues a ticket for an infraction punishable by an amount set by the Municipal Court Judges. Mayor Pro Tem Plummer made a motion to adopt Ordinance 89 -8, and requested that sometime next year the City should consider increasing the animal license fees to reduce its subsidy costs. 2. Proposed ORDINANCE NO. 89 -9, being, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADDING CHAPTER 11.17 PERTAINING TO THE OPERATION, LAUNCHING, AND HAULING OF VESSELS AND JET SKIS ADJACENT TO THE PACIFIC OCEAN, . was presented for second reading with recycled report from Marine Director, dated April 24, 1989. Letter dated April 25, 1989 from William S. Gray concerning jet skis. Letter from Bill Sharp, Editor of SURFING Magazine suggesting stronger restrictions than currently proposed on use of jet skis. Volume 43 - Page 190 Ord 89 -9 Marine Recreatnl Actvts (51) L L • CITY OF NEWPORT BEACH MINUTES 00\O 040 � May 8, 1989 The Council was advised that after the agenda was printed, communication was received from the Jet Ski Boating Association. The City Manager referred to additional information presented for their consideration tonight since the proposed ordinance was introduced on April 24, regarding the interpretation of Section 11.17.020 and the Dory Fleet, and suggested that the proposed ordinance be reintroduced on May 22. John Snelgrove, 408 San Bernardino Avenue, addressed the Council stating that he is in favor of an ordinance prohibiting all jet ski use within the surf line and launching from the beach, and referred to the signed petitions presented to Council to that fact. He added that he does not feel jet skis and its operator with an approximate force of 400 pounds that can travel 35 miles per hour should be in the surf competing with swimmers or surfers. Roger Hagie, 14152 Klee, Irvine, and employee of Irvine Kawasaki Motors, manufacturer and distributor of the Kawasaki Jet Ski, addressed the Council, stating that as a company they don't oppose jet ski regulations that prohibit them from areas where there are swimmers and surfers, and are agreeable to a reasonable approach governing watercraft. He suggested that consideration be given to at least maintaining one ocean front access corridor to launch jet skis with a clear definition as to what are the areas they can operate the personal watercraft, and that Kawasaki Motors would attempt to communicate the necessary information to prospective owners of jet skis to properly comply with the regulations adopted. Tom Brimer, 6908 W. Coast Highway, addressed the Council, stating that he and his family are year -round users of the beach and has had a near - collision with an irresponsible jet ski rider. He added that in his opinion, the proposed ordinance does not effectively restrain jet skis, and leaves the City open for possible liability. Catherine Martin, 1824 W. Ocean Front, and a representative of International Jet Ski Boating Association, addressed Volume 43 - Page 191 Marine Recreatnl Actvts L ROLL rILi E • CITY OF NEWPORT BEACH MINUTES n \CP20 j, L May 8, 1989 the Council stating that she concurs in Mr. Hagie's comments and fully supports the Marine Department's intention to keep vessels out of congested swimming areas, but feel that some provision should be made for people who wish to use their boats during the hours prescribed by the ordinance. She added that there are approximately over 900 jet ski owners in the Costa Mesa, Newport Beach and Corona del Mar areas. She opposes total restriction of all vessel launching and feels that the City of Newport Beach should take into account the needs of its residents who are boat owners, as well as the visitors who come to the beach. She suggests that the area immediately to the west of the Newport Pier be considered as a launching corridor for vessels, as the Dory Fleet has already set the precedent for launching there. Mike Marshall, 2474 Santa Ana Avenue, addressed the Council, suggesting that any enforcement regulations should be practicable in its approach; however, the request for a corridor further confuses the issue, as this City is the only beach City that allows mechanized launching for vessels from the ocean front. He further commented that he sees nothing wrong with launching vehicles such as jet skis in the harbor and designated areas, but a safe and prudent distance away from swimmers and surfers should be considered. He added that jet skis are vessels, and that the City should reconsider the ordinance to strengthen the regulations. Bill Stone, 2199 Maple Street, Costa Mesa, addressed the Council, stating that he is a personal watercraft owner who rides frequently off the beaches in Newport, and agrees with the segregation of personal watercraft from surfers and swimmers. However, he believes that the use of a Newport Harbor access area would be dangerous for all personal watercraft users, for the fact that the watercraft is smaller, in some cases difficult to operate among larger boats, and not a worthwhile solution. He is in favor of an access corridor, or separate part of a beach area to launch and get out pass the surf to ride, but feels that the time from 10:00 a.m. and 5:00 p.m. is restrictive, and the access area should be open throughout the day. Volume 43 — Page 192 Recreatnl Actvts L E on Ayes • CITY OF NEWPORT BEACH EMBERS MINUTES O 6 gG9'A �,p �� May 8, 1989 INDEX Tom Pratte, representing the Surfrider Marine Foundation in Huntington Beach, Recreatnl addressed the Council, commented that Actvts the purpose of the ordinance sets a restriction prohibiting jet skis from 10:00 a.m. and 5:00 p.m., May to September, and all other times would be open. He added that personal watercraft other than jet skis are compatible, but cited the noise, obnoxious fumes, smell and hazards imposed by the jet skis. He suggested that the ordinance apply to swimmers, surfers, body surfers, paddlers, kyakers, i. e., all nonmotorized uses. He also suggested a 200 yard distance from any surfer, swimmer, bather, nonmotorized person recreating in the water, and feels that these suggestions are short of an outright ban on jet ski watercraft. Nancy Skinner, 1724 Highland Drive, addressed the Council, stating that she is a swimmer, and that when the jet skis go by with the fumes and noise they leave behind endangers the safety of the swimmers, as well as the environment. She added that she would like to see a total ban on the use of jet skis in the ocean. X Discussion ensued, wherein it was determined that from the testimony given, the proposed ordinance, as it is presented, needs to be revised; therefore, motion was made to reintroduce the subject ordinance on May 22 for the first reading. I. CONTINUED BUSINESS: . 1. Recycled report from the City Manager Npt Bch dated February 13, 1989 concerning the Cnf /Vstr; NEWPORT BEACH CONFERENCE AND VISITORS Bureau BUREAU (CONTRACT NO. 2638), was C -2638 .presented. (38) Copy of City Council Minutes of February 13, 1989, pertaining to the Newport Beach Conference and Visitors Bureau. Random survey of contributions to the Newport Beach Conference and Visitors. Bureau. Report and goals from the Newport Beach Conference and Visitors Bureau, dated May 1, 1989. Volume 43 - Page 193 III C • CITY OF NEWPORT BEACH MINUTES a \FV May 8, 1989 After the agenda was printed, report from Laventhol & Horwath dated April 28, 1989 was presented to Council Members . with cover letter from Jim Dale, Newport Beach Conference and Visitors Bureau. Jim Dale, 118 Apolena, member of the Board of Directors of the Newport Beach Conference and Visitors Bureau ( NBCVB), addressed the Council, and requested 10 minutes in which to give their complete presentation including slides. He began by illustrating the reasons why the City established the NBCVB - -to identify the visitors attracted by said bureau, and review its activities, as follows: Today, the City of Newport Beach has 2500 first -class hotel and motel rooms, and the $4 million revenue generated during 1988 for the City's general fund came from a 65% occupancy rate; therefore, the unoccupied rooms represented an incredible revenue generating opportunity for the City. The NBCVB was established as a professional marketing organization to ensure the dividend of this resource to the citizens of Newport Beach, and represents pure profit to the City to fund the services the residents expect -- it is the payoff for the City's years of planning. With Newport Beach's extraordinary environment and high quality of its revenue - generating hospitality industry, the NBCVB introduces the City to the "perfect visitor," who invisibly spends over $225 per day, and leaves no footprints on our beaches. The collaboration of the NBCVB and the City to attract the "perfect visitor" represents the best of private industry and local government, and the self- funding 1% visitor service fee, which the NBCVB pays the City to collect, still leaves to the residents of the City the 8% Transient Occupancy Tax (TOT). The Laventhol & Horwath report clearly indicates the City is getting.a good return from its visitor service fee compared to what other cities spend on marketing services, and despite aggressive competition from surrounding cities, the revenue from Newport's TOT is up 16% from one year ago. During the past nine months, the NBCVB has booked over Volume 43 - Page 194 Npt Bch Cnf /Vstrs Bureau Ed • CITY OF NEWPORT BEACH EMBERS MINUTES A � �� aW May 8, 1989 INDEX 10,000 rooms, which translates to Npt Bch more than $2.2 million in gross Cnf /Vstrs sales coming into Newport Beach Bureau from the "perfect visitor." Future bookings through the Bureau's efforts total more than 41,000 rooms, equaling over $9 million of new growth revenue coming into Newport Beach, of which the NBCVB has contributed $100,000 to the City's transportation fund, and will continue to contribute $50,000 annually to that very important fund. In summary, Mr. Dale stated that the NBCVB requests the Council to allow the Bureau to continue to capitalize on the "fantastic revenue - generating" opportunities, and their specific objectives for 1989 are to: - Increase revenues by 18 %; - Create and maintain an awareness of Newport Beach as a destination for business and leisure guests; - Increase support of community promotion and events; and establish a better dialogue with the Newport Beach elected officials and staff; - Within four years increase the occupancy rate to 75 %, which will mean gross revenues of more than $22 million to the local businesses of Newport Beach, and a TOT of $861,000 over the present level, and sales tax revenue of $124,800 over its present.level. Jeff Morris, 1806 Port Ashley Place, President of the Newport Beach Conference and Visitors Bureau, addressed the Council and asked that the City Council disallow the proposed ordinance and direct the staff to draft an amendment to the February, 1987 agreement between the City and the Bureau to allow the Bureau to continue operating uninterrupted for a period of three years. He added, that at the conclusion of the three year period the Council could then review the organization's effectiveness and either allow it to continue or terminate the funding. He explained that they ask for Volume 43 - Page 195 CITY OF NEWPORT BEACH G�Z CGS. 9 9� G♦ 9� L CALL 9 N May 8, 1989 E C7 MINUTES three years because it will realisti- cally take that long before the marketing and direct sales efforts can be really felt, and in addition, the multi -year commitment on the part of the City is vital when attempting to attract a top -notch executive director. Discussion ensued, wherein Mayor Strauss complimented the Bureau on their marketing presentation and professional- ism with regard to the Laventhol & Horwath report, but stated that he did not feel the City should continue the tax, and is still opposed to it as he feels it is an improper use of the City's taxing authority to help one class of private business, namely the hotels. With regard to the Laventhol & Horwath report, Mayor Strauss stated that not one of the cities used in the comparison are in Orange County, and that there are no cities in Orange County that take part of the occupancy tax and allocate it to a convention and visitors bureau; that the City's occupancy rate in 1988 was 64.6% according to the report, compared to the surrounding cities with a total of 64.2 %, and these cities do not have a similar tax imposed. He cited that on Page 5 of the report it states: "It is difficult to assess the impact of the NBCVB based on a comparison of the growth of Newport Beach hotels' available and occupied room - nights to aggregated numbers for the major hotels in the surrounding communities (Costa Mesa, Santa Ana and Irvine)." Mayor Strauss further cited that one big impact on City services stems from the use of the airport, and the visitors who get here use that service, and also the traffic and parking generated by those visitors attending conferences, golf tournaments, picnics, etc. He added that the financial benefits are uncertain and are offset by the use of the foregoing mentioned services. In summary, Mayor Strauss slated he is not against private industry, but his principal objection is that it is an improper tax designed to help private business interests, and suggested that the NBCVB be combined with other local hotels outside of Newport Beach, and if the 1% service fee or tax is done away with, the hotels could lower their price if they wish; use it for advertising; or add to their profits, and that the Chamber of Commerce is the place where Volume 43 - Page 196 Npt Bch Cnf /Vstrs Bureau Motion Motion 0 x CITY OF NEWPORT BEACH x MINUTES May 8, 1989 the NBCVB should be housed and supervised. He also feels that the NBCVB should not be "saddled" with the trolley business, and that it is time to have a broader overall City -wide management transportation program. In view of the above, Mayor Strauss made a motion to introduce and pass to second reading on May 22, 1989, a proposed ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH REPEALING SECTION 3.28 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO VISTOR SERVICE FEE ORDINANCE; the repeal to be effective six months from this date so that the Newport Beach Conference and Visitors Bureau have time to reorganize. Discussion ensued, wherein substitute motion was made to disallow the proposed ordinance; that the Newport Beach Conference and Visitors Bureau be allowed a three -year period of time to operate their business; and approve their 1989 -90 Budget and Marketing Plan. Council Member Watt stated that she could not support the substitute motion, but if it fails, and the main motion fails, she believes that she could support an interim proposal. She added that because of the impacts from visitors the City is struggling for transportation money, money for airport studies and for transportation management consultants, and believes that all of the TOT should go toward impacts on the City from visitors, and if this is not the case, then more of the 1% sales tax should be applied to these impacts. She suggested that the Newport Beach Conference and Visitors Bureau be allowed a two -year period to accomplish their goals and then be reevaluated. Discussion ensued, wherein the Newport Beach Conference and Visitors Bureau contract and the use of the 1% service fee will be addressed at a future meeting. Council Member Hart, in her concern regarding the collection of a substantial amount of money, ($600,OOOt per year) suggested that someone from the City Council be an ad hoc member to the Board of Directors of the Newport Beach Conference and Visitors Bureau, as any time that a City is using a Volume 43 - Page 197 Bch /Vstrs h Ayes Noes E 0 CITY OF NEWPORT BEACH \OtoD S May 8, 1989 xlxlxlxlxlxlx MINUTES perceived tax, they are going to have to have hands -on and be able to review that particular budget. The City Attorney suggested that when the contract comes back, the Council will have an opportunity to address that particular issue. The substitute motion, as presented in the foregoing, was voted on and carried. J. CURRENT BUSINESS: Npt Bch Cnf /Vstrs Bureau 1. Report from Parks, Beaches and Npt Aquatic Recreation Commission concerning dock Ctr construction, dredging and excavation at C -2637 the NEWPORT AQUATIC CENTER (CONTRACT NO. (38) 2637), was presented. The City Manager addressed the Council, stating that since the most recent meetings, and up -to -date dialogue of the Parks, Beaches and Recreation Commission, representatives of the Aquatic Center, and others concerned about disposal of dredged materials onto North Star Beach, the following recommendation to the City Council was agreed upon: "1. Approximately 1500 cubic years of material will be accommodated and retained for the foundation of the Phase Two building; 2. Additional material will be stockpiled within the Aquatic Center's lease boundaries at an elevation not to exceed 6' above the Phase Two foundation's elevation in a manner which will not impinge upon the riparian area; 3. Any excess material not accommodate as described in Items 1 & 2 will be stockpiled westerly of the present Aquatic Center facilities at the base of the hill; 4. All material referred to as "stockpiled" and as described in Items 2 and 3 will be removed off site through a brokering process over a maximum period of two years. The City will administer the brokering process; Volume 43 - Page 198 Motion All Ayes 0 x G CITY OF NEWPORT BEACH MINUTES May 8, 1989 5. The material resulting from any future maintenance dredging shall be accommodated offsite at the Aquatic Center's expense; and 6. All material to be deposited onsite shall be monitored by appropriate state and federal agencies and that documentation shall be available for public inspection." Motion was made to approve the subject application with the foregoing conditions. Meeting adjourned at 11:45 p.m. ATTEST: ty The agenda for this meeting was posted on May 4, 1989, at 9:00 a.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Volume 43 — Page 199 pt Aquatic tr