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HomeMy WebLinkAbout03/11/1996 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting March 11, 1996 - 7:00 p.m. • CLOSED SESSION - 6:30 P.m. [Refer to separate agenda from City Attorney] CLOSED SESSION REPORT PRESENTED (If applicable) - None RECESSED AT 6:55 P.M. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Absent: None Irvine Council Member Barry Hammond presented copies to the Council of the report prepared for the El Toro Reuse Planning Authority identifying the opportunities and constraints for conversion of MCAS El Toro to a commercial airport. Council Member Hammond stated that the preliminary findings of the report conclude that: i) the existing facilities and buildings at MCAS El Toro are unsuitable for commercial airport use; 2) John Wayne Airport and MCAS El Toro cannot successfully co -exist as commercial airports; 3) a commercial airport at MCAS El Toro would operate without restrictions or limitations; 4) a commercial airport at MCAS El Toro would significantly increase traffic congestion and block opportunities for traffic relief; 5) environmental issues create a significant risk of litigation and delay; and 6) the financial climate is uncertain for commercial aviation development. • Mayor Hedges responded by giving examples of where there are two or more airports in close proximity across the country, noting that Denver international Airport (DIA) is the first privately funded airport, and the environmental cleanup will be less because the site has already been used as an airport. He noted that the demand for increased air traffic is as a result of the residential, commercial and industrial growth in south county and the demand cannot be fulfilled by John Wayne Airport. Council Member Hammond stated that the City of Irvine does not want to see this tied up for years in litigation since everyone wants to see reuse of the site. Council Member Edwards reiterated that DIA was constructed solely with revenue bonds that sold out in less than an hour and the use of DIA is raising 23% annually. He explained that the current restrictions on John Wayne Airport were put in place as a result of the City of Newport Beach getting involved, which is exactly why the City of Irvine and Lake Forest should be involved in the planning process, however they have declined three public invitations to join. Motion by Mawr Pro Tern Debay to waive reading of the minutes of the meeting of February 26, 1996, to approve as written and order filed. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None • Abstain: None Motion by Mayor Pro Tern Debay to waive reading of the ordinances and resolutions under consideration, and direct the City Clerk to read by titles only. The motion carried by the following roll call vote: Volume 50 - Page 85 • • City of Newport Beach City Council Minutes March 11, 1996 Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON- DISCUSSION ITEMI: Mayor Pro Tern Debay requested that a staff report be brought back to Council regarding Assemblyman Pringle's bill on consolidation and what it might mean to Newport Beach, especially as it pertains to the underground water project. Council Member Cox requested that staff evaluate and draft a policy for Council consideration regarding telecommuting. CONSENT CALENDAR ORDINANCES FOR INTRODUCTION Removed from Consent Calendar. 2. Removed from Consent Calendar. 3. INTRODUCE ORDINANCE NO. 96 -12 and pass to second reading on March 25, 1996: Amending Chapter 10.04 of the Newport Beach Municipal Code to Allow Service of Alcohol on Public Property with a Special Permit Application Approved by City Council; and APPROVE, SUBJECT TO CONDITIONS, THE SPECIAL EVENT PERMIT APPLICATION 96 -025 for the BACK TO BAL CARNIVAL (Hoag Hospital Foundation) to be held on Thursday. March 28, 1996 in the Fun Zone area from 5:30 to 10:00 p.m., within the Balboa Pavilion from 5:30 to 11:00 p.m.; with outdoor amplified sound from 5:30 to 10:00 p.m.; service of alcoholic beverages; and ADOPT RESOLUTION NO. 96 -23 AUTHORIZING: THE TEMPORARY CLOSURE OF CERTAIN CITY STREETS FOR THE EVENT (Main Street from Balboa Blvd. to the Pavilion, Washington Street from East Bay Avenue to the Bay, and the public sidewalk along the bayfront from Main Street to Palm Street). RESOLUTIONS FOR ADOPTION 4. ADOPT RESOLUTION NO. 96 -24 Authorizing the Acceptance of a Department of Boating and Waterways Grant in the Amount of $4,489 for the REPLACEMENT OF THE BALBOA YACHT BASIN BOAT PUMPOUT /DUMP STATION FACILITY. 5. Removed from Consent Calendar. CONTRACTS AND AGREEMENTS 6. Removed from Consent Calendar. Removed from Consent Calendar. Volume 50 - Page 86 96 -12 /70) ipecial Event ?erm Apl 96 -025 (27/65) Res 96 -23 (27/65) Ycht Basin Pumpout Station Fac 96 -24 (51) City of Newport Beach City Council Minutes March 11, 1996 8. GROUNDWATER DEVELOPMENT PROJECT - 36 -INCH WATER TRANSMISSION GYTIdwtr Dev Prj MAIN - REACH NO. 4 - PHASE II (CONTRACT NO. 3004 -N) - Reject bids, Reach No. 4 /Ph II authorize staff to rebid, direct staff to include portions of this project within C- 3004 -N the 15th Street Rehabilitation and Storm Drain Construction Project (Contract (38 • No. 2661), and authorize Amendment to the Professional Services Agreement with AKM Consulting Engineers for $55,957 to Revise the Plans and Specifications. 9. MACARTHUR BOULEVARD WIDENING - SEGMENT 1 CONSTRUCTION (Contract MacArthr Bl Wdng No. 2825(J) - Approve CONSULTANT AGREEMENT with Smith Emery Company Seg 1 Cnstr for Geotechnical and Materials Testing Services for a Not -to- Exceed Amount C-2825(i) of $78,430. (38) 10. SAN DIEGO CREEK SEDIMENT MONITORING PROGRAM - Approve SDiego Crk Sdmt COOPERATIVE AGREEMENT with the County of Orange, Cities of Tustin and Mntrg Prg CoP Ag, Irvine and the Irvine Company. C-2827(38) 11. 157H STREET REHABILITATION AND STORM DRAIN PROJECT - OLD NEWPORT 15th St Rehab /Stn BOULEVARD TO IRVINE AVENUE - Approve AGREEMENT with the City of Costa Drn Prj /Old Npt B- Mesa for Participation in the Construction of the Project. to t-266 38 Av ) 12. CORONA DEL MAR WATER MAIN AND ALLEY REPLACEMENT ALLEY NO'S. - 32 -A, CdM Wtr Mn /Aly 32 -B, 33 -A, 34 -A, 35 -A, 44 -D & 44 -E (CONTRACT NO. 3029) - Approve RPlcin CONTRACT with Gillespie Construction Inc. in the amount of $350,985; affirm C -3029 the Categorical Exemption; approve the plans and specifications; and (38) establish a 10% construction contingency in the amount of $35,098. 13. Removed from Consent Calendar. 14. ACCEPT OFFER OF DEDICATION OF VEHICULAR ACCESS RIGHTS to 4343 Resub 1018 MacArthur Boulevard Located in the Newport Place Planned Community as 4343 MacArthr Bl a Condition of Approval for RESUBDIVISION NO. 1018 - Parcel Map No. 91 -292. (84) 15. LIDO PARK DRIVE BULKHEAD TIE ROD AND DECK REPLACEMENT (Contract No. Lido Prk Dr Blkhd 2671) - ACCEPT WORK and authorize City Clerk to file Notice of Completion Tie Rd /Deck Rplan and release bonds 35 days after Notice of Completion has been recorded. C -2671 (38) 16. RIVER AVENUE WATER AND SEWER MAIN REPLACEMENT PROJECT (Contract No. River Av Wtr/Slur 3050) - ACCEPT WORK and authorize City Clerk to file Notice of Completion Mn Pplcm Prj and release bonds 35 days after Notice of Completion has been recorded. C -3050 (38) MISCELLANEOUS ACTIONS 17. Planning Commission Agenda - March 7, 1996. (68) 18. INITIATION of Supplemental GENERAL PLAN AMENDMENT 96 -1 for the GPA96- 1 /Housg El HOUSING ELEMENT UPDATE as Required by State Law. (45) 19. SET PUBLIC HEARING for March 25, 1996 to UPDATE THE CITY'S URBAN WATER Urban Wtr Mgm Pln MANAGEMENT PLAN. (89) • 20. HARBOR PERMIT APPLICATION No. 138-1 (Kenneth B. Roath) to REVISE THE RESIDENTIAL FLOAT BAYWARD OF 1 HARBOR ISLAND - Approve subject to I Harbor Perm Apl No 138 -1 (51) conditions. 21. HARBOR PERMIT APPLICATION No. 200 -701 (Don Goldman) to REVISE THE IHarbor Perm FLOAT BAYWARD OF 701 BAYSIDE DRIVE - Approve subject to conditions. Apl No 200 -701 (5_ Volume 50 - Page 87 City of Newport Beach City Council Minutes March 11, 1996 22. BA -032, $15,000 - For the implementation of the DOG NUISANCE ORDINANCE BA-032 Finance NO. 95 -41 (General Services). 1 (40) • BA -033, $ 9,000 - Acceptance and appropriation of funds from a State Grant (LSCA) to fund INSTALLATION OF PUBLIC INTERNET WORKSTATIONS (Library Services /Administration). MOTION BY MAYOR PRO TEM DEBAY TO APPROVE THE CONSENT CALENDAR, EXCEPT FOR THOSE ITEMS REMOVED (1, 2, 5, 6, 7 & 13). THE MOTION CARRIED BY THE FOLLOWING ROLL CALL VOTE: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None ITEMS REMOVED FROM THE CONSENT CALENDAR 1. INTRODUCE ORDINANCE NO. 96 -10 amending Chapter 17.24 (Structures in the Harbor) of the Newport Beach Municipal Code Authorizing the Fire And Marine Chief, Or His Designee, to Approve Harbor Permit Applications Without Council Approval With Appeal to the City Manager, and pass to second reading on March 25,1996; and APPROVE PROPOSED REVISIONS TO COUNCIL POLICY H -1 to Comply with Proposed Ordinance. Council Member Watt noted that the proposed amendment would allow certain harbor permit applications to be reviewed by staff with staff's decisions appealable to the City Manager. She questioned whether there . were any provisions which would allow appeal to or by the City Council. City Manager Murphy explained that this amendment was a result of attempts to streamline the agenda, however staff would not have a problem with including a provision which would provide for appeal to or by the City Council. Motion by Council Member Watt to introduce Ordinance No. 96 -10 as amended to include the Council appeal provision and pass N to second reading on March 25, 1996. The motion carried by the following roll call vote: Ayes: O'Neil. Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None 2. INTRODUCE ORDINANCE NO. 96 -i1 Amending Section 12.68.060 of the Newport Beach Municipal Code to Establish a Residential Parking Permit Program for Portions of Newport Heights and Cliff Haven, pass to second reading on March 25, 1996; and ADOPT RESOLUTION NO. 96 -22 to Limit the Parking of Vehicles between the Hours of 8:00 a.m. and 6:00 p.m. on School Days to Two (2) Hours in Portions of Newport Heights and Cliff Haven (areas near Newport Harbor High School). In response to a resident's question about what this would cost the residents, • Capt. Henisey explained that the code amendment and resolution are a result of meetings held with the school district and the residents surrounding Newport Harbor High School to address parking impact concerns. He said that it was determined that this proposal would be the best option and it would be appropriate to provide a permit parking program similar to the one Volume 50 - Page 89 Finance (40) Ord 96 -10 Harbor Permit Applications (51) Cncl Plcy H -1(69) Ord 96 -11 Parking (85) Res 96 -22 City of Newport Beach City Council Minutes March 11, 1996 provided for the Newport Island residents. He stated that the cost for each permit per residence would be $10.00 annually. • Jim Bailey, 2301 Margaret Drive, stated that they were told that this would be the first attempt to ease the impacts, however if this was not successful further steps would be taken. Mayor Hedges explained that the only item open for Council consideration at this time is the proposed ordinance and resolution, however if after implementation there are still problems, he urged Mr. Bailey to work with the council member representing his district. Motion by Council Member Glover to introduce Ordinance No. 96 -11 amending Section 12.68.060 of the NBMC to establish a residential parking permit program for portions of Newport Heights and Cliff Haven, pass H to second reading on March 25, 1996, and to adopt Resolution No. 96 -22 to Umff the parking of vehicles between the hours of 8:00 a.m. and 6:00 p.m. on school days to two (2) hours in the some areas. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None 5. ADOPT RESOLUTION NO. 96 -25 Endorsing the Concept of the ORANGE COUNTY WATER DISTRICT GREEN ACRES, PHASE 11 AND IRVINE RANCH WATER DISTRICT INTERTIE FOR RECLAIMED WATER. • Council Member Watt requested that staff make an oral presentation on this item and that the audience be given an opportunity to provide input. Public Works Director Webb summarized the concept of the program explaining that it would allow reclaimed waiter from the Irvine Ranch Water District (IRWD) to be transferred to the Orange County Water District Green Acres. He said that it is possible that 5 million gallons per day could be treated and used by the Sanitation District in the winter months. He said that the IRWD is being requested to postpone taking action on their proposal for dumping water into the upper bay until it can be determined if this project is feasible. Mayor Pro Tem Debay noted that the IRWD has proposed treating the water and releasing it, however the City encourages the reuse of the water. In response to her question about the construction time, Mr. Webb indicated that if all of the permits were in place already, the construction would take approximately 18 months. Jack Skinner, 1724 Highland Drive, endorsed the adoption of the resolution since the proposal would make it unnecessary for the IRWD to discharge the treated water into the upper bay and it would also eliminate the waste of a valuable resource. He said there is a market for the reclaimed water during the winter months in Santa Ana and Fountain Valley. • Motion by Council Member Wait to adopt Resolution No. 96 -25 endorsing the concept of the Orange County Water District Green Acres, Phase II and Irvine Ranch Water District interne for reclaimed water. The motion carried by the following roll call vote: Volume 50 - Page 89 Res 96 -22 O/C Wtr Dist Green Acres Ph II & Irvine Ranch Wtr Dist Intertie Res 96 -25 C -2933 (38/89) Res 96 -25 City of Newport Beach City Council Minutes March 11, 1996 Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None • Abstain: None 6. BALBOA PENINSULA PLANNING STUDY - Approve CONSULTING AGREEMENT with Urban Design Camp and SCOPE OF SERVICE. Council Member Glover questioned the authority that was given to the City Manager at the February 26, 1996, meeting, stating that she thought the Council had allocated $30,000 for the study and directed the City Manager to come back with a scope of services, not direction to recommend award of a consulting contract. She also questioned whether the proposals were all submitted within the past two weeks. City Manager Murphy reviewed the minutes from the meeting and explained that after the Council meeting, a meeting was held with the committee to review, modify and update the scope of services that had already been determined. He said it was his understanding that Council wanted to move on with the first phase of the 15 point plan to revitalize the peninsula. He also noted that the funds for this part of the program will come from the City Manager's budget for Professional and Technical Services by delaying or reducing other programs that were anticipated for this budget and the balance would be worked into the budget for next fiscal year. He explained that the proposals were submitted earlier and were reviewed by the former Assistant City Manager, Ken Delino, and the committee. • Council Member Glover asked that in the future when something has been done that was not budgeted for that staff inform Council. She also indicated that if this study is done and then put on the shelf, she will hold the City Manager accountable. Mayor Hedges reported that the BPPAC was appointed by Council and they already did a substantial amount of the work. Council Member Edwards stated that Council is ultimately accountable if the study is not implemented because they make the final decision. He explained that at this time the Council will be voting on the hiring of a consultant and not the implementation of the study. He said that a great deal of the scope of services deals with gathering data and then it will be up to Council to follow through with it. Chan Lefebvre, 2112 E. Balboa Blvd., representing the Balboa Peninsula Point Association, endorsed the awarding of the contract and noted that this is the next step to moving forward with this proposal. Gary Malazian, 4827 Cortland Drive, Corona Del Mar, urged the Council to proceed with the improvements since a lot of information has already been provided and there is no need for further study. a Pnsla Ping Cnsltg Agn 4 (38) Motion by Mayor Hedges to approve the consulting agreement with Urban Urban Design Design Camp and the scope of services. The motion carried by the following Camp roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None Volume SO - Page 90 City of Newport Beach City Council Minutes March 11, 1996 7. EL PASEO STORM DRAIN PROJECT (CONTRACT NO. 3074) - Approve the plans and specifications, and authorize the City Clerk to advertise for bids for the construction of the project. • Public Works Director Don Webb reported that staff met on March 7, 1996 with members of the Bahia Corinthian Yacht Club (BCYC) and Mr. Benson to address their concerns regarding the construction of the storm drain project. He indicated that they are concerned with the increased amount of water and who will be responsible for the maintenance of the storm drain. He also indicated that there are some time constraints that they are still working on since the project needs to be constructed (luring the dry season and that is also when the BCYC uses the facilities the most. He requested that Council authorize staff to advertise this project when an agreement has been reached with BCYC. Val Skoro, 1601 Bayadere Terrace, Corona Del Mar, representing the Irvine Terrace Community Association, voiced concerns about the coral trees that are to be boxed and moved to accommodate the project and questioned who would take responsibility for them. Council Member O'Neil explained that the original plan to remove the trees was changed and a special trench shoring system will be incorporated to allow the storm drain to be installed without moving the trees. He also explained the reasons why the storm drain cannot be installed under the sidewalk and said he is available to work with the association to make the inconvenience as minimal as possible. Motion by Council Member O'Neil to approve the plans and specifications for the El Paseo Storm Drain project (Contract No. 3074) and authorize the City • Clerk to advertise for bids for the construction of the project once an agreement has been reached with BCYC. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None 13. BOB HENRY PARK CONSTRUCTION (CONTRACT NO. 3078) - Approve CONTRACT with Los Angeles Engineering, Inc. in the amount of $930,155 (Option 3) and contingency of $90,000; and approve BUDGET AMENDMENT (BA -034) in the amount of $189,000 from Unappropriated Park -in -Lieu Fees. Based on late correspondence received from Micon Engineering, as noted by the City Clerk, City Manager Murphy requested that Council continue this item until March 25, 1996 to allow staff time to review the legal issues raised before awarding the contract. Motion by Council Member Edwards to continue the award of the contract for the Bob Henry Park Construction project until March 25, 1996. The notion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges • Noes: None Absent: None Abstain: None Volume 50 - Page 91 Paseo Stzm Drn 074 (38) Bob Henry Park C -3078 (38) BA-034 (40) City of Newport Beach City Council Minutes March 11, 1996 PUBLIC HEARINGS 23. PUBLIC HEARING REGARDING PROPOSED ORDINANCE NO. 96 -6, AMENDING CHAPTER 20.72 (RESTAURANTS) OF THE MUNICIPAL CODE TO ALLOW SPECIALTY FOOD SERVICE USES TO HAVE ALCOHOLIC BEVERAGE SALES AND LIVE ENTERTAINMENT ON A LIMITED BASIS [PLANNING COMMISSION AMENDMENT NO. 839] Mayor Hedges opened the public hearing. Acting Planning Director Temple explained that this ordinance was initiated' by the Planning Commission because of inquiries received from the owners of specialty food service establishments about adding alcoholic beverage service and live entertainment. She noted that the Planning Commission' considered the requests and determined that they could support limited alcohol service with specialty food service because the variety of food and beverages served are likely to be consumed quickly so there would be a rapid turnover in parking, however adding live entertainment would extend the patron's stay and take it out of the character of being a specialty food service establishment. She explained that at the February 26, 1996 meeting Council voted to put the live entertainment aspect back into the ordinance, however staff would still be required to make specific findings to determine if the intent of the provisions are being met. In response to questions raised by Council, Ms. Temple explained that all use permits have a provision which allows them to be reviewed if problems arise and if alcohol and live entertainment are added, a use permit would be required and there would be a public hearing prior to approval. Council Member Watt questioned what criteria would be used to make the determination and said she is not sure what the City is trying to achieve. Ms. Temple explained what would be required by staff to determine compliance and stated that these items would still be required for transmittal to the Planning Commission for their consideration. Don Marcheano, President of the Restaurant Association, stated that of approximately 40 specialty food restaurants, 10-12 will probably apply to add the alcohol service and live entertainment. lie said these establishments are in older neighborhoods and should not have an impact on traffic. He reported that the Restaurant Association feels this modification will be good for Newport Beach and the community. Rush Hill, Economic Development Committee, addressed the importance of allowing the small establishments to add these two services and explained how it gives them an opportunity to fill their seats and increase their income. He said, however, the use permit process would be a deterrent because of the cost involved. He spoke in support of the concept, however noted that the committee would like to see the ordinance amended to allow administrative approvals with a definition of "limited beer and wine" so the fees can be eliminated. Hearing no further testimony the public hearing was closed. Motion by Mayor Hedaes to continue this hearing for six weeks to allow staff time to address the following concerns: 1) what is going to be the affect of what in practice will be the blurring of the distinction between specialty foods and restaurants: 2) what would the actual effect be on the parking and neighborhood in these areas 9 all forty establishments were approved, espec- Volume 50 - Page 92 Ord 96 -6 Zoning (94) City of Newport Beach City Council Minutes March 11, 1996 tally on the peninsula where parking is already limited: 3) would there be a possible proliferation of a bar environment if there were a congregation of these types of uses; and 4) since use permits run with the land and are difficult • io revoke is there a different type of permitting process fhot would give more flexibility to handle businesses that don't conform to the rules. He also stated that he does not see a clear connection between economic development as we now see it and are promoting it and approval of this specific ordinance, and he would like to see more of a nexus there. He said there needs to be some planning to go along with economic development since there has been such a proliferation of bars, especially in the peninsula area already. He said he doesn't want to be in a situation where the City is permitting even more bars, If not in name, but in practice, and thereby thwarting some of the Improvements that the City wants to advancer on the peninsula. Council Member Edwards agreed that these questions need answered and said he would be prepared to allow the ordinance to come back in six weeks. Council Member Glover said that she was on the Planning Commission when specialty foods came in and comparing it to today, there are a lot of changes and it needs to be looked at again, especially in the use permit; area. She said she is committed to maximizing the property in Newport Beach for a continued revenue stream, however would like to work with staff' and do some analysis to see what the implications of some of these things would be. She said the land, especially the older areas, needs to be carefully used to be sure that the revenues are maximized and determine if it would be a positive or negative interference with established businesses, and if the original "niche" that was chose for this is still the "niche" that the City • wants to hold in the future. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None 24. PUBLIC HEARING regarding proposed ORDINANCE NO. 96 -7, AMENDING CHAPTER 20.76 OF THE NEWPORT BEACH MUNICIPAL CODE TO ALLOW TIME- SHARE PROJECTS IN COMMERCIAL DISTRICTS [PLANNING COMMISSION AMENDMENT NO. 8421 Mayor Hedges opened the public hearing. Acting Planning Director Patty Temple explained the proposed ordinance as well as the criteria as outlined in the staff report that must be met to permit time -share projects in commercial districts and in the commercial sections of specific area plans and planned community development districts with the approval of a use permit. As noted by the City Clerk, she reiterated that a letter was received from Newport Dunes requesting that the Council reduce the requirement for the number of rooms from 300 to 250. She said that staff recommends adoption of the ordinance in its present form and at the next is meeting they will bring back a resolution of intention to change the room size requirement. She explained that the 300 room requirement was established based on the additional criteria that the time -share be developed in conjunction with recreational facilities, and staff felt that an establishment of this size would be able to afford the required facilities. She explained that Volume 50 - Page 93 Ord 96 -7 Zoning (94) PCA 842 City of Newport Beach City Council Minutes March 11, 19% Newport Dunes meets all of the other proposed criteria and to her knowledge they would be the only other facility that would qualify for conversion to time -share if the room number requirement were decreased.) In response to questions raised by Mayor Hedges, City Attorney Burnham, explained that the parameters of the ordinance could not be changed on a' case by case basis if the applicants don't satisfy the minimum criteria, without, amending the ordinance, however the required development agreement may provide some flexibility and allow the Council to deal with the applicants on a case by case basis, except for the parameters of the ordinance. Ms. Temple said that because of the development agreement and the other points associated with them, even if the applicant met the parking requirements and unit limits there may be other reasons why the time- share may not be approved. In response to Mayor Pro Tern Debay, Ms. Temple explained that the ordinance does not set any requirements for minimum square footage or kitchen facility requirements, however those standards have been set by the industry already. Council Member O'Neil addressed concerns with having time - shares in facilities that aren't appropriate and Council Member Glover questioned the size of the time- share downcoast. City Manager Murphy explained that originally there were to be a high number of time -share units and a smaller number of hotel rooms in the downcoast time -share project, however it is his understanding that this Is in a state of flux right now. He also explained that staff had concerns about legally preserving the revenue stream, however those concerns will be addressed in the development agreements. Hearing no further testimony, the public hearing was closed. • Motion by Council Member Edwards to adopt Ordinance No. 96 -7 amending Chapter 20.76 of the NBMC to allow time -share projects in commercial districts. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None 25. PUBLIC HEARING regarding proposed ORDINANCE NO. 96 -9. AMENDING TITLE 13 OF THE NEWPORT BEACH MUNICIPAL CODE RELATING TO THE USE OF PUBLIC SIDEWALKS FOR OUTDOOR DINING Mayor Hedges opened the public hearing. Principal Planner John Douglas reported that the ordinance was introduced on February 26, 1996, however at that time there was a difference of opinion as to the appropriate annual use fee, therefore staff is proposing a compromise. The proposed annual use fee schedule is as follows: 1) First year no use fee ($50 application fee only); and 2) Subsequent years: $100 per year for 100 square feet or less and $200 per year for over 100 square feet. He said that the restaurant owners have no objections to the proposal since waiving the use fee for the first year will allow them an opportunity to try out the sidewalk dining concept at minimal expense to determine whether it works. In response to Mayor Hedge's parliamentary procedure question regarding the need for a motion for reconsideration on Council's decision made on February 26, 1996, City Clerk Harkless explained that a motion for reconsideration is not required because the votes taken on the use fee were Volume SO - Page 94 r. Ord 96 -9 Outdoor Dining (65/68) City of Newport Beach City Council Minutes March 11, 1996 only straw votes to provide direction to staff and it was clarified that they would be subject to change prior to approval. Carl Poetes, Caffe Carluccio, 2201 W. Balboa Blvd., thanked staff for their work and Council for their sensitivity to the needs of the business owners and encouraged them to vote in the affirmative for the revitalization of Newport Beach. Rush Hill, Economic Development Committee, thanked staff for their diligence to move this issue forward. Gary Malazian, 4827 Cortland Drive, Corona Del Mar, thanked Council and staff for proposing this and questioned where the line would be drawn to allow sidewalk dining. City Manager Murphy explained that the ordinance addresses encroachments on public property where the sidewalks are wide enough to accommodate sidewalk dining. Hearing no further testimony, the public hearing was closed. Motion by Mayor Pro Tem Debay to adopt Ordinance No. 96 -9 authorizing the Public Works Director to Issue permits for sidewalk dining subject to certain standards; adopt Resolution No. 96 -26 establishing Sidewalk Cafe license Encroachment Permit Fees; and approve Council Policy L -19 - "Sidewalk Cafe Standards and Procedures ". The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None 26, PROTEST HEARING regarding the Proposed Renewal of the CENTRAL BALBOA BUSINESS IMPROVEMENT DISTRICT for the Fiscal Year Commencing April 1, 1996. Principal Planner John Douglas reported that on February 26, 1996 the Council adopted a resolution of intention to levy the fees for the Central Balboa Business Improvement District and no protests were filed. Mayor Hedges opened the protest hearing. Gary Malazian, 4827 Cortland Drive, Corona Del Mar, thanked Mr. Doug and Ms. Teague for working with the Balboa Merchant Owners Association. Dayna Pettit, 1741 Plaza Del Sur, Balboa Merchants Association, noted that this is the first step for the Central Balboa Business Improvement District. Council Member Glover stated that this is an example of how businesses and government can work together. Hearing no further testimony, the public hearing was closed. Motion by Mayor Hedges to adopt Resolution No. 96 -27 confirming the Central Balboa Business Improvement District Annual Report and levying the BID assessment for fiscal year 1996 -1997 at the same level as the prior year, based on the protests representing less than 50 percent of the total assessments. The motion carried by the following roll call vote: Volume 50 - Page 95 Dining :cl Plcy L-19 (69) Res 96 -26 Encl= License Perm Fee (69) Central Balboa BID (27) Res 96 -27 City of Newport Beach City Council Minutes March 11, 1996 Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None • Abstain: None ORDINANCE FOR ADOPTION 27. Proposed ORDINANCE NO. 96 -8, Ord 96 -8 Zoning AMENDING PORTIONS OF DISTRICTING MAP NO. 25 REZONING THE Morgan Dev PROPERTY FROM THE "R -2" DISTRICT TO THE "MFR (7DU)11.37 x B.A.1" (94) DISTRICT (MULTI - FAMILY RESIDENTIAL) - (Planning Commission PCA 837 Amendment No. 8371 for the Property Located at 507 -521 Orange Avenue (MORGAN DEVELOPMENT) in Accordance with Previous Approval of General Plan Amendment. City Manager Murphy explained that this ordinance was introduced at the last meeting and is scheduled for adoption in the same form. Motion by Council Member Glover to adopt Ordinance 96 -8. The motion carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox, Glover, Watt and Mayor Hedges Noes: None Absent: None Abstain: None PUBLIC COMMENTS • Michael Lee, Murrieta, asked Council to consider placing an item on a future agenda regarding his unarmed security proposal. • Rush Hill, Economic Development Committee, reminded Council and the public of the upcoming Toshiba Classic golf tournament. • Marcia BMarthaler, 615 Bay Hill Drive, made a presentation on a consumer health awareness project addressing teen smoking. • Larry Root, 1012 Polaris, thanked Council for taking a stand on Measure S and encouraged everyone to consider the impacts this measure would have on Newport Beach and to vote "no" on it. Council Member Edwards explained that a "no" vote on Measure S means that the El Toro planning process will go forward as mandated by Measure A. Mayor Pro Tern Debay pointed out that for years a search was made for alternative airport sites without any success. Council Member Edwards explained that there have been in excess of 20 studies completed on this subject and the El Toro site was identified as the most desirable site in the country for a commercial airport. • Ken Lobbe, Intrinsa, 2727 Newport Boulevard, reported that the North Peninsula Center is in bankruptcy and one of it's tenants, Jack's Surfboards, is contemplating acquiring the property or leaving the area. He also spoke in opposition to Measure S. • Council Member Edwards announced that the Newport Beach International Film Festival will be held March 21-31, 1996 and urged the public to attend. Volume 50 - Page 96 City of Newport Beach City Council Minutes March 11, 1996 CONTINUED BUSINESS 28. Discussion of MAYOR'S STATE OF THE CITY PROPOSAL • Mayor Hedges reviewed the five points of his proposal that he delivered at the Mayor's dinner in February, said he would like to discuss them and bring them back for adoption in the form of a resolution at the next meeting. The five points are: 1) to establish a performance -based functional budget for FY 1996 -97 so a layman with no experience with municipal government can see where the money is spent and where it comes from; 2) to review all services to determine which and to what extent they should be funded from general revenues, tidelands revenues, user fees, or if they should be eliminated if not supported by user fees; 3) after determining whether a specific service should be contracted, establish, increase, reduce or eliminate specific fees which support specific services; 4) evaluate all income property to determine whether or not the return on specific assets justifies their retention in the portfolio; and 5) to maintain the commitment to restoration of reserves and to the improvement of infrastructure. He said that if the City is able to do all those things over the next two years he believes the normal growth in revenues will put the City in a position to refund some portion of property tax to the people of the City of Newport Beach. He said that property taxes should) not be refunded for the sake of refunding property tax because the levels of service, restoration of reserves and improvements to the infrastructure also must be maintained. He noted that most of these points are a re- statement of what the Council has been saying over the past three to four years, however the goal to refund a portion of property tax provides a target for the Council to shoot for and hopefully hit. Council Member Glover, addressing the goal of a performance -based functional • budget, said she can see what the Mayor is referring to as far as a budget but questioned how to get there. She questioned whether a group of citizens could help in establishing such a budget since it is important that the information be made available to the public in an understandable format. Mayor Hedges indicated that improving the budget has been a top Council goal for the last several years and the City is well on the way to achieving that goal. Mr. Murphy said that much of what the Mayor is looking for pertaining to a functional -based budget will be available within a few weeks when the KPMG Peat Marwick study is complete. He said the study will identify overhead, cost analysis, performance measures and cost of services and the information will be provided on disk so it can be updated annually. He said this will be a tool for the Council to use to review and set policy regarding the subsidizing of programs. Council Member Cox said he believes most of this has been discussed or is currently being done and questioned the value of a resolution. He said the City has talked about privatizing, there is a need to privatize more and it should be looked at more to determine if the City is operating as cost effective as possible. He said that income property has been talked about in terms of asset management (are we managing our assets, real property or other properties as cost effectively as possible and getting the best market rate return on them). He noted that the infrastructure is a problem because the improvements have been deferred and deterioration issues are uncovered every day that need to be addressed. He voiced concerns about refunding property tax while still maintaining the quality of life and standards, pointing out how tough it has been in the last five years to make ends meet and to maintain those standards. He said he doesn't know when the City would ever get to the point where there would be an opportunity to refund tax money if the goal is to bring the reserves and the infrastructure back to the standard the Council wants. He reiterated that most of these things are currently being done and questioned what the difference is in the Mayor's proposal. Volume 50 - Page 97 Mayor's State Of City Proposal (33) City of Newport Beach City Council Minutes March 11, 1996 Mayor Hedges stated that his intent to adopt a resolution would be to crystallize for the staff what the Council's intent is with respect to the budgeting process, what the Council hopes to accomplish and to provide some focus and a target for the end of • the two year period of what the Council hopes to achieve. He said the idea is to wrap all the points up in one resolution that indicates how Council would like to do business. Council Member Cox stated that the Council adopted a set of goals already, and although he feels some of these items are important, he would rather put them on the agenda to determine such things as: 1) how to implement them; 2) what is the strategy for asset management; 3) what is the strategy for and priority for infrastructure improvements; and 4) what is the strategy for performance -based functionality. Mayor Hedges asked the City Manager if a resolution would send a message to him and staff about the direction Council wants to go, especially with respect to bringing back the implementing steps. He said that some of the things the Council wants to have done are not being done with the speed they'd like to have them done or they're being done under a different priority. Council Member Glover agreed on Council Member Cox's points on implementation and how the City get there. She compared improvements being made to Irvine Avenue with matching funds to areas on the peninsula that need improvement for which there will never be matching funds. She said those are the kinds of issues the Council should be looking at and she's not sure whether a resolution will do that, therefore it may be better answered by establishing policy. • Mayor Pro Tern Debay said she can completely endorse the point about maintaining the commitment to the restoration of reserves and to the improvement of infrastructure, however her reservation is that a resolution somehow talks about urgency and Council is whipping staff into a frenzy to meet this at a certain time level. She said she feels that the first five points would be good subjects for a study session and she would like to see the list given to KPMG to include in their study and have them come back with hard and fast figures as well as comments to questions about services, income property and assets. She said she sees this as a philosophical thing and voiced concerns about the City running on philosophy rather than just good functional government. She noted that Newport Beach does not have vacant land and the opportunities for new development. She indicated that she isn't ready to adopt a resolution that gives an urgent tone to it, but would like to plan carefully and move forward with the staff. She said the idea of a tax refund sounds great, but when broken down it is probably $100 per household, which may put the City at risk if any state actions or demands are made on the city and the City does not have the proper reserves. She said she would not support adoption of a resolution that talks about tax refunds in 1998. Mayor Hedges responded that everything the Council does is based on some form of philosophy, that policy is based on philosophy and almost every decision that is made at every Council meeting is based on some individual's philosophy and how they arrived at that decision, so this shouldn't be treated any differently. He said that she may oppose the idea of refunding some portion of property tax, however with respect to the state, he doesn't think the state will single out Newport Beach •because the City is operating more fiscally responsible than the other cities in the state or certainly more than the state itself. Council Member Edwards disagreed with Mayor Hedges conclusion although complimented him for raising this issue since fiscal management is the issue that faces the City of Newport Beach. He said he thinks the City still has a problem since Volume 50 - Page 98 Mayor's State Of City Proposal City of Newport Beach City Council Minutes March 11, 1996 the state is still grabbing $3.3 million per year, the county continues to hit the City, the City is facing the issue of landfill fees, and in the past the City has faced the issue of monitoring the bay, therefore the City needs to be somewhat realistic in terms of the • continuance of those future expenses. He said the City has a proliferation of lawsuits and he considers the reserves to be almost paramount in terms of the Council's thinking and the real issue is how does the City get there. He said that 25 years ago the city essentially had no reserves, was close to bankruptcy and essentially dug in and figured out ways to accumulate those reserves and made some very tough decisions but eventually made its way out into the open. He said the outlook for Newport Beach is brighter than it was a few years ago, but sales tax revenue is still about 12.5% less than projected in 1990 -91, real property values are down about 26% and with a projected comeback of 4% it will take 4-6 years to get back to the 1988 level. He said it is unrealistic to solve infrastructure problems, etc., in a resolution. He spoke in support of some reality based planning in terms of determining how to solve the infrastructure problems. Council Member O'Neil also commended Mayor Hedges and said that although these issues may have been discussed by Council in the past on a number of occasions, he looks at it differently since it was a state of the city address made at the Speak -Up Newport annual dinner where the Mayor tries to capsulize and outline for the people just what is important to the city. He said the five issues outlined are extremely important to the city and he has no problem with the Mayor making that kind of a statement publicly. He said that the conclusion that if all of these things are done and done well it might afford an opportunity to provide some kind of a property tax refund, may have put Council off a little and caused some discomfort because the Council all realizes that it would be a very difficult thing to do. He said he doesn't feel that was really the main point that the Mayor was trying to address, • but that he was talking more about what the Council's goals are, therefore he doesn't have a problem voting in favor of adopting a resolution that incorporates these principles. He said he probably would not vote for a resolution with a refund element in it. Council Member Watt questioned whether the five points could be incorporated into a list of priorities and goals that Council already approved either by adding to them or incorporating them at some point since they have some bearing on them. She said she would like to see the points incorporated so none of them get lost and they can still be viewed as a whole. With regard to the refund she said it has a ring of truth to it because the Council would then have to justify everything that is done. Mayor Hedges said his proposal is to bring back a resolution for adoption that the Council will find less threatening and he hopes they can get behind it since it is something that will work for the City of Newport Beach. Council Member Glover said she does not want to leave the public with the impression that the City is fat and healthy. She said one of the long term goals of Council is to identify new streams of revenue which is extremely important because the revenues have been declining, the State has been taking more, and there are more government regulations all the time. She noted that Newport Beach is a mature city so there won't be continuous new buildout, therefore the Council needs to identify new constant streams of revenue and new ways of getting more revenue annually to provide the same level of services as has been provided in the past. • MOTION FOR RECONSIDERATION - None ADJOURNMENT -9:35 p.m. Volume 50 - Page 99 or's State City Proposal • City of Newport Beach City Council Minutes March 11, 1996 The agenda for this Hall Bulletin Board Building. Attest: '2�UB� City Clerk meeting was posted on March 6, 1996 at 2:50 p.m. on the City located outside of the City of Newport Beach Administrative Mayor Volume 50 - Page 100