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HomeMy WebLinkAbout06/24/1996 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting June 24, 1996 - 7:00 p.m. INDEX • CLOSED SESSION - 5:00 a.m. [Refer to separate agenda from City Attorney] CLOSED SESSION REPORT PRESENTED - None RECESSED RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft Absent: None Mayor Hedges presented Certificates of Recognition to students who participated in the Earth Day Poster Contest, assisted by Nancy Gardner, Member of the Environmental Quality Affairs Citizens Advisory Committee. Richie Collins, grandson of former Mayor and City Council Member Ruthelyn Plummer, officiated and presented the winners in the drawing for prizes, which included a grand prize of a beginners surfboard and promotional surfing souvenirs. Mayor Hedges presented Certificates of Appreciation to the Newport Harbor Speech and Debate Team, and to the Captain, Mike Hoevel. Gregg Schwenk, Coach for the team expressed his thanks to the entire City Council for their Financial and philosophical support. Motion by Mayor Pro Tern Debay to waive reading of Minutes of Special Study Session of June 7, 1996, and Regular Meeting of June 10, 1996, approve as written and order filed. Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Wait Noes: None Absent: None Abstained: None Motion by Mayor Pro Tern Debay to waive reading In full of all ordinances and resolutions under consideration, and direct City Clerk to read by tithes only. Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstained: None MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON- DISCUSSION ITEM) Council Member Watt requested a report on the July 8, 1996 agenda regarding the Balboa Island Residential Standards. • Council Member Edwards requested a report back on July 8, 1996 regarding is Newport Center Association /Caltrans slgnage for destination to Fashion Island. • Council Member O'Neil requested a report back regarding The Irvine Company's proposed plan before the Orange County Board of Supervisors to amend the development plan for the Newport Coast project, which may Volume 50 - Page 178 City of Newport Beach City Council Minutes June 24, 1996 move the various residential projects closer to the coastline, what that plan Is, and whether or not It would have an impact on the City, specifically traffic movements through Corona del Mar. • Council Member O'Neil stated that he has received complaints (phone calls) of the noise generated from the fixed wing aircraft advertising over the beach areas, and he requested information from staff to pass along to those residents. CONSENT CALENDAR ORDINANCES FOR INTRODUCTION 1. INTRODUCED ORDINANCE NO. 96 -24, adding Chapter 6.08 to Newport Beach Municipal Code pertaining to food handling businesses and health services fees. RESOLUTIONS FOR ADOPTION 2. Removed from the Consent Calendar. 3. Adopt RESOLUTION NO. 96 -43 authorizing the Police Department to temporarily close, or divert traffic from portions of Seashore Drive, Balboa Boulevard, and Newport Boulevard, during the 4th of July Holiday to install temporary barricades on Seashore Drive, and to close certain parking lots. CONTRACTS AND AGREEMENTS 4. BAYVIEW WAY EXTENSION (CONTRACT NO. 3034) - Approve the plans and • specifications for construction of Bayview Way Extension street and utility improvements to serve the new Fletcher Jones Motorcars. Authorize the City Clerk to advertise for bids for the construction of the project. 5. COMPLETION AND ACCEPTANCE OF SOUND WALL FOR SEGMENT NO. 1 CONSTRUCTION OF MACARTHUR BOULEVARD WIDENING (CONTRACT NO. 2825 -D) - Accept the work. Authorize the City Clerk to file a Notice of Completion. Authorize the City Clerk to release the bonds 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code. 6. AUTHORIZATION TO EXECUTE AN AGREEMENT WITH CALTRANS TO DEVELOP TRANSPORTATION MANAGEMENT ASSOCIATION SERVICES IN THE AIRPORT AREA (CONTRACT NO. 3088) - Authorize the Mayor and City Clerk to execute an agreement with Coastal Motion to perform a Feasibility Analysts for the implementation of a Transportation Management Association or other employer consortium in the airport area with funding from Calf rans. 7. 1995 -96 STREET RESURFACING AND SLURRY SEAL PROGRAM (CONTRACT NO. 3086) - Award Contract No. 3086 to All American Asphalt for the Total Bid Price of $725,529.00 plus a construction contingency amount of $55,000.00 and authorize the Mayor and City Clerk to execute the contract. . 8. INVESTMENT MANAGEMENT AGREEMENT (CONTRACT NO. 2382) - Approve the Investment Management and Custodial Contracts with City National Bank. 9. Removed from the Consent Calendar. Volume 50 - Page 179 INDEX Ord 96 -24 Health /Sanitation (27/40) PD /4th July Traffic Res 96 -43 (70) Bayview Extnsn C -3034 (38) MacArthur B1 Widening /Snd Wall Seg 1 C- 2825 -D (38) Caltrans /MAS Airport Area C -3088 (38) 1995 -96 Street Rsrfcg /Slurry Seal C -3086 (38) City National Bank C -2382 (38) City of Newport Beach City Council Minutes June 24, 1996 10. 11. MEMORANDUM OF UNDERSTANDING - POLICE MANAGEMENT ASSOCIATION - Approve the Memorandum of Understanding between the City and the Police Management Association which covers the period • from January 1, 1996 through December 31, 1997. MISCELLANEOUS ACTIONS 12. PLANNING COMMISSION AGENDA - June 20, 1996. 13. MEASURE M AND CONGESTION MANAGEMENT PROGRAM 1996 -97 ELIGIBILITY PACKAGE. Adopt the seven year Capital Improvement Program. Direct staff to submit the adopted programs and certification of compliance with the Maintenance of Effort requirements to the Orange County Transportation Authority to satisfy the eligibility requirements for the Measure M and Congestion Management Programs. 14. Removed from the Consent Calendar. 15. Removed from the Consent Calendar. 16. PROPOSED COUNCIL POLICY G -8, BEACH MAINTENANCE - Approve proposed Council policy. 17. NEWPORT RIDGE PARK - Direct staff to enter Into formal discussion with the Newport Harbor Ridge Homeowners Association on the use of the private Newport Ridge Park for public recreational programs coordinated by Recreational Services of the City's Community Services Department. • 18. LEGAL ADVERTISING FOR FISCAL YEARS 1996 -97, 1997.98 AND 1998.99 - Accept the bid of the Daily Pilot and authorize a purchase order for the three -year periods of 1996 -97, 1997 -98, and 1998 -99. 19. Removed from the Consent Calendar. 20. REPORT ON STATUS OF NEGOTIATIONS FOR 338 DAHLIA AVENUE, CORONA DEL MAR - Direct staff to continue discussions with the property owner, obtain an appraisal to conform to 1263.010, return to Council for closed session to consider results of appraisal, and, if necessary, take the steps to proceed to acquisition by eminent domain. ACTION: MOVE AFFIRMATIVE ACTION OF THE CONSENT CALENDAR, EXCEPT FOR THOSE ITEMS REMOVED (2, 9, 10, 14, 15 and 19). Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Abstain: None Absent: None ITEMS REMOVED FROM THE CONSENT CALENDAR 2. RESOLUTION NO. 96 -42 modifying the Paramedic Subscription Program to include emergency ambulance transportation by Fire and Marine • Department personnel as a member benefit (rescinds Resolution 94 -98); approve an amendment to the existing agreement for Provision of Emergency Ambulance Transportation Services (C- 2972C); and schedule a public hearing on July 8, 1996, for the modification of emergency ambulance transportation service rates for non - residents to conform to a new County rate schedule. Volume 50 - Page 180 INDEX PD /MOU /Mgm C -2932 (38) (68) Measure M Congestion Mgm Prog '96 -97 (74) Council Policy G -8 (69) Newport Ridge Park (62) Legal Advertising FY 1996 -99 (32) 338 Dahlia Ave/ Prop Acq (73) Fire /Paramedic Prg /MedTrans Res 96 -42 C- 2972 /Laidlaw (38) City of Newport Beach City Council Minutes June 24, 1996 Motion by Mayor Hedges to refer membership portion of the resolution (definition of a member) to Public Safety Committee, which motion carried by the following roll call vote: Motion by Council Member Glover to approve Resolution No. 96 -42 and the foregoing recommendation, Including the context of Mayor Hedges' motion. Tom Hyans, 217 19th Street, questioned member /annual membership for services to be provided by the paramedics. By his interpretation, this can be as low as $1.20 per year per individual, and result in a $12.00 total fee per individual per year for an ambulance ride and paramedic services from industrial /commercial membership. He also questioned where the excess funds go, or where the money comes from to subsidize the program when the program loses money, as it is not explicit in the resolution. He cited that in 1994 there were approximately 2,333 calls, and when divided into the $1.5 million for salaries and benefits for 16 Paramedics, this would be about $643 per call, which Is a pretty good subsidy for them. City Manager Murphy advised that it is staff's intention to have revenues and expenditures calculated separately to actually identify them, and if a shortfall exists to support the program, then the operation would be supported by the General Fund. Other Cities have done the business /member program, and this is something that the City can market • that would generate revenues on an ongoing basis for this program. The Integral part of the program is the paramedic subscription fee for residents. Motion by Mayor Hedges to amend the resolution to delete the first paragraph on page 3, which states the justification for the fee that would cancel the program, died for lack of a second. Motion by Mayor Hedges to amend the motion to Include direction to staff to investigate ways of Improving paramedic response time in the absence of the emergency ambulance transportation services agreement died for lack of a second. A roll call vote on the main motion by Council Member Glover was taken as follows and carried: Ayes: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft • Noes: Absent: None None Abstain: Abstain: None Motion by Council Member Glover to approve Resolution No. 96 -42 and the foregoing recommendation, Including the context of Mayor Hedges' motion. Tom Hyans, 217 19th Street, questioned member /annual membership for services to be provided by the paramedics. By his interpretation, this can be as low as $1.20 per year per individual, and result in a $12.00 total fee per individual per year for an ambulance ride and paramedic services from industrial /commercial membership. He also questioned where the excess funds go, or where the money comes from to subsidize the program when the program loses money, as it is not explicit in the resolution. He cited that in 1994 there were approximately 2,333 calls, and when divided into the $1.5 million for salaries and benefits for 16 Paramedics, this would be about $643 per call, which Is a pretty good subsidy for them. City Manager Murphy advised that it is staff's intention to have revenues and expenditures calculated separately to actually identify them, and if a shortfall exists to support the program, then the operation would be supported by the General Fund. Other Cities have done the business /member program, and this is something that the City can market • that would generate revenues on an ongoing basis for this program. The Integral part of the program is the paramedic subscription fee for residents. Motion by Mayor Hedges to amend the resolution to delete the first paragraph on page 3, which states the justification for the fee that would cancel the program, died for lack of a second. Motion by Mayor Hedges to amend the motion to Include direction to staff to investigate ways of Improving paramedic response time in the absence of the emergency ambulance transportation services agreement died for lack of a second. A roll call vote on the main motion by Council Member Glover was taken as follows and carried: Ayes: O'Neil, Edwards, Debay, Cox, Glover and Waft Noes: Hedges Absent: None Abstain: None 9. WEST NEWPORT SAND HAUL AND BEACH FILL - Authorize the Mayor to execute a right -of entry agreement with the Corps of Engineers to allow access to the West Newport beaches to conduct an excavation, sand haul and beach -fill operation, including temporary closure of some • beach access. Mayor Pro Tern Debay advised that there is a proposed project after September 15 in West Newport that will affect the beaches from the Santa Ana River Jetty almost to the Newport Pier, and deferred to Public Works /Utilities Director Webb, wherein he reported that several years ago Volume 50 - Page 181 INDEX Fire /Paramedic Prg West Npt Sand Haul /Beach Fill (74) City of Newport Beach City Council Minutes June 24, 1996 the Corps of Engineers dumped 1.5 million yards of sand out of the Santa Ana River offshore and made a mound. That sand has washed ashore making a very wide beach and the Corps of Engineers, under a Federal project for sand replenishment at the Surtside- Sunset Beach, Seal Beach area, have now offered to move 140,000 cu. yds. of that sand from the very wide beach area in West Newport down into the narrower beaches where the groins are and down towards the pier. The contract which requires the right -of -entry will take somewhere between four and six weeks to move the sand. During that time frame (7:30 a.m. and 4:30 p.m., between September 1996 and March of 1997) the areas where they are excavating and depositing the sand will be closed to the public, however some of the area will be open to the public on the weekends. Motion by Mayor Pro Tem Debay to approve the recommendation by staff in foregoing carried by the following roll call vote. Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: None 10. RENEWED AGREEMENT WITH HAZELRIGG RISK MANAGEMENT SERVICES, INC. (HRMS) for Worker's Compensation (WC) Claims Administration Services (Contract No. 3040) Council Member Edwards removed the agenda Hem, and will refrain from voting due to a conflict of interest. Motion was made by Council Member O'Neil to approve the recommended action. • Mayor Hedges expressed concern that the agreement Includes a 4% fee increase ($5,000 over last year), and the fact that the annual renewal agreement includes an annual fee Increase. City Attorney Burnham advised that the 4% increase is effective only if staff approves the company's performance during the previous year, wherein City Manager Murphy explained that the City is more than satisfied with the performance of the company. Risk Manager Lauren Farley advised that there is a 60 -day cancellation clause in the agreement, and if the City Council did not approve the Increase, staff would negotiate with the company to continue processing the claims under the current fee of $245,000 (Costa Mesa shares hall of this payment), and consequently the City would have to go out to bid for a replacement. Mayor Hedges commented that he will support staff's recommendation, and that it Is good that we share the cost with the City of Costa Mesa, but that it is not good timing to bring this type of agreement to the City Council at this late date with an expiration date of June 30, as it does not give the Council options to explore these types of questions, other than the public forum. The motion was voted on and carried with the following roll call vote: Volume 50 - Page 182 INDEX Hazelrigg Risk Mgm /11orkers Comp C -3040 (38) Ayes: O'Neil, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: Edwards Volume 50 - Page 182 INDEX Hazelrigg Risk Mgm /11orkers Comp C -3040 (38) City of Newport Beach City Council Minutes June 24, 1996 14. USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR ECONOMIC DEVELOPMENT PROJECTS - Informational report regarding regulations establishing specific guidelines to assist cities with evaluation and selection of economic development assistance activities. (Report requested by Council Member Edwards.) • Council Member Edwards removed this item from the Consent Calendar as he wanted to thank staff for the report, and made a motion to refer this Information to both the EDC, Planning Commission, and BBPAC for review, comments and recommendation to the City Council (including a larger map). The motion was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: None 15. COUNCIL POLICY G -5, PARK AND STREET IMPROVEMENT DONATIONS - Approved the proposed amendments to the Park and Street Improvement Donation policy. City Manager Murphy advised that this policy is Intended to provide guidelines in terms of park and street improvement donations, and the report deals with several different things, i.e., park bench donations, particularly on Balboa Island, park and street amenities with certain guidelines for receipt and processing of the donations, including guidelines with respect to recognition of the donor. • Mayor Pro Tern Debay commended the Theater Foundation that conducted the Balboa Theater fund - raising last evening, stating that in that area of Main Street there are new benches and old benches. Her hope is that through the donation program, the visitor serving areas can be spruced up by acquiring stone aggregate trash enclosures to replace the traditional City blue plastic trash cans. Motion by Mayor Pro Tern Debay to approve the recommended action carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: None 19. AIRPORT AREA REZONING STUDY - Direct staff to (1) continue working with stakeholders in the study area to form a Property /Business Owner Task Force; and (2) Prepare a work program, budget and proposed financing mechanism for the preparation of a specific area plan for the study area. Council Member Glover expressed her interest in the land use patterns, specifically in the airport areas to identify new revenues ff Newport Beach Is to continue as a full service City. The long term hope is to have a specific area plan, looking at different incentives, f. e., joining lots, • different ways of doing master planning, etc., as there are other uses there that would not be suitable in the City that could generate more revenue. Motion by Council member Glover to approve the recommended action carried by the following roll call vote: Volume 50 - Page 183 INDEX Prj/ CDBG Funds (24/87) Council Policy G -5 (69) Economic Deb/ Airport Area Rezoning Study (24) City of Newport Beach City Council Minutes June 24, 1996 Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Wait Noes: None Absent: None Abstain: None • PUBLIC HEARINGS 21. ORDINANCE NO. 96 -16 AMENDING PORTIONS OF DISTRICTING MAP NO. 18 TO ALTER THE BOUNDARY BETWEEN THE "R -1" AND "PC" DISTRICTS (PLANNING COMMISSION AMENDMENT NO. 847); GENERAL PLAN AMENDMENT NO. 96 -1(C) AND LOCAL COASTAL PROGRAM AMENDMENT NO. 45 TO ALTER THE BOUNDARY BETWEEN THE "RETAIL, SERVICE COMMERCIAL" USE AND THE "SINGLE - FAMILY RESIDENTIAL" USE - K.A. CATANZARITE AND SO CAL IBEW -NECA PENSION PLAN (352 HAZEL DRIVE AND 3901 EAST COAST HIGHWAY). (Continued from May 13, 28, and June 10, 1996.) City Attorney Burnham advised that there still is the unresolved matter of title policy to accommodate the agreement of the parties necessary to consummate a settlement between the City, the "Summerhouse" developers and the adjoining property owner, that will minimize the grading and destruction that has to occur In the neighborhood. Mayor Hedges proposed a motion to lay the matter on the table, and if his motion is successful to remove it from the table and schedule the matter for a subsequent meeting, with the understanding that the applicant bear the cost of renoticing the public hearing. Frank Vandenberg, American Realty Advisors on behalf of the SO CAL IBEW -NECA PENSION PLAN, apologized for the numerous continuances. • He stated that one of the problems in completing the parcel map has been with the exceptions on the preliminary title report differing from one title company to another. The parties involved have now changed to one title company to do the research, and because of the short week coming up (July 41h holiday) the parties Involved are requesting a four week continuance and that the matter not be fabled. K.J. Catanzerite joined in apologizing for the amount of time this project has taken, and stated that just today they received the preliminary title report, which removes all of the exceptions. Part of his concern is that the County's normal review process may take as much as four weeks, Wherein, City Attorney Burnham advised that he believes the Council can approve the action on the settlement agreement without final County approval of the parcel map. Substitute motion by Council Member O'Neil to continue to July 22, with the understanding that if the action is not ready for Council approval the matter will be tabled, carried with the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft Noes: None Absent. None Abstain: None 22. OPTION AGREEMENT AND GROUND LEASE by and between the City of Newport Beach and the BALBOA BAY CLUB PROPERTY, INC. City Manager Murphy highlighted some of the issues of the current and proposed lease. With respect to the consultants engaged by the City, highest priority was given to the economic viability, property values and fair market rental values. The original lease was entered Into in 1948 (SO- Volume 50 - Page 184 INDEX Ord 96 -16 PCA 847 GPA 96 -1(C) LCPA 45 Catanzarite Zoning (94) Balboa Bay Club C -519 (38) City of Newport Beach City Council Minutes June 24, 1996 year lease) and in 1986 the City entered into a 25 -year term lease extension which expires in the year 2011. Today the City receives approximately $900,000 In total rent pursuant to the terms of the current lease. Per a 1985 MOU between the parties, (BBC and City) they are required to work together on a comprehensive plan for the • redevelopment of the lease premises. As for the matter of the Terrace Apartments, It has been acknowledged that they are on State Tidelands, this issue has been resolved, and they may remain as part of this property and not converted to visitor -type uses through the year 2044. The BBC submitted their redevelopment plans in 1994 for City processing through the Planning Commission and to the Coastal Commission and received approvals. The 1986 lease has the City acknowledging that a redevelopment will require a new lease extension consistent with financing requirements, and that is the action before the Council tonight. City Manager Murphy advised that the current proposal before the Council is structured with an option and a lease, and the option is such that the It may be exercised only after the BBC has completed certain Issues: 1) All the processing for permits from all governmental entities for the renovation and reconstruction of the premises; 2) Obtained the City's approval as landlord of the concept plans, design development plans and final plans for the renovation; 3) Provided satisfactory evidence to the City that sufficient financing is available to complete the renovation, and finally that they have obtained and paid for a building permit to actually commence the construction. BBC, per the option agreement, may exercise that agreement at any time prior to the 5th anniversary of the option agreement, and If action is taken tonight B would be within five years of that date. In consideration for the option agreement the BBC has agreed to pay the City $250,000 plus interest accrued at 8% between the option agreement approval and the date If, and when, It Is exercised. • The timetable in the option agreement requires the BBC to submit their conceptual plan by June 30, 1997; the design development plans within one year of that date; and the final plans and specs prior to the expiration of the option. The specific ground lease agreement term is 50 years commencing upon the completion of certain steps as follows: construction of the new Improvements must begin within 90 days of the new lease and must be completed within three years; BBC agrees to renovate and maintain the hotel through the lease agreement in a first class condition and agrees to keep all the other facilities in a condition equal to other quality facilities in the area. Currently the base rent is approximately $400,000, and the new base rent in this agreement is $1.125 million (the various categories and percentages are outlined in the agreement). Motion by Council Member Glover to conduct the public hearing; approve an Option and Groundlease Agreement with the Balboa Bay Club, Inc.; and authorize staff to forward the agreements to the State Lands Commission for approval. David Wooten, President of the International Bay Clubs, the parent company of the Balboa Bay Club, commented that for over a half century the BBC has provided a social, recreational, business club for Its members and in addition has served as host for many civic, social, charitable and business functions. The option agreement will enable the BBC to continue its traditions for another 50 years, and as a result of the redevelopment • project, a portion of the BBC site will be open to the general public. He commended the staff for the tremendous effort that went into the BBC project in developing an agreement that will last for 50 years, stating that this is truly a win, win project, and hopes that the Council will grant the approvals. Volume 50 - Page 185 INDEX Balboa Bay Club City of Newport Beach City Council Minutes June 24, 1996 Beverly Ray, Chairman of the Board, International Bay Clubs and BBC, added that the negotiations have taken a lot of hard work and in speaking for the Club, feels they have reached an agreement that will benefit the City, as well as insure the continuity of the Club, which has become a symbol of Newport Beach hospitality and lifestyle, and hopes • the Council will give their unanimous approval. Richard Luehrs, President of the Newport Harbor Area Chamber of Commerce, representing the Board of Directors, asked for Council's unanimous support of this particular lease agreement, citing the beneficial aspects to the City and the public. Rush Hill, Chairman of the City's Economic Development Citizens Advisory Committee, reviewed the existing lease, as well as the new option and groundlease. He sold he believes it represents a quality agreement which provides for the renewal of the property and the renewal of a significant asset for the City of Newport Beach. The BBC will have a new lease as the cornerstone for financing this multi- million dollar project, and he strongly urged approval of the action before the Council tonight. He added that we should not lose sight of the fact that this is a new anchor tenant on the east end of Mariners Mile. If, within the next 12 months, we can be successful in dealing with the vacancies on the west end of Mariners Mile, then collectively a tremendous new value will have been created in one of the most important business districts In the City. Hearing no one else wishing to offer public testimony, the public hearing was closed. A roll call vote was taken on the motion and carried as follows: • Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft Noes: None Absent: None Abstain: None PUBLIC COMMENTS Daniel Allen Cutrone, 11738 Garetal Street, Santa Fe Springs, addressed the Council stating that for the past six weeks he has been working on the MacArthur widening project. During this time they have uncovered a prehistoric native American Indian site there, which was not included in the EIR. He has information that the site is significant to the native American heritage In the City of Newport Beach, and he believes that the widening project should go around this prehistoric site until a reevaluation is presented and the public made aware of its significance towards a small commemorative island park. Council Member O'Neil acknowledged the many phone calls he has received in support of the new Farmers Market in Corona del Mar, and the fact that it is doing very well and contributing to the community, not only as market, but a meeting place. CURRENT BUSINESS • 23. BUDGET CHECKLIST FOR THE 1996 -97 FISCAL YEAR PROPOSED BUDGET /BUDGET RESOLUTION. City Manager Murphy gave an update on some of the issues that Council asked for on the Budget checklist: Volume 50 - Page 186 INDEX Balboa Bay Club FY 1996 -97 Budget (40) City of Newport Beach City Council Minutes June 24, 1996 Additional Information - City Manager Murphy presented the Council with two additional information schedules requested at the Budget Study Session of June 7, 1996. The first schedule showed "Core Capital Projects" for the last 5 years. This is a listing of those capital projects financed from City generated revenues and does not Include those one • time capital projects funded from outside financing sources such as State or Federal funds. The second schedule showed a 10 year trend in safety vs. non - safety salaries as well as budgeted vs. actual revenues and expenditures over the same time period. The salary and revenue and expenditure figures were shown in actual and adjusted for inflation amounts. This schedule also showed a 10 year history of full time employees. Vehicles - Staff added this to the checklist for the purpose of rebudgeting these funds to the Vehicle Replacement Fund, to purchase vehicles that were budgeted in the 1995 -96 fiscal year but were not expended or encumbered previously (Police Undercover Van ($77,580), Paint Striper Truck ($30,500 lease purchase), and three Police Motorcycles ($39,000)). Following Council discussion, the following Budget checklist Hems were discussed and straw voted: Off- street Parkina Transfer - Each year, 50 percent of the revenue generated from certain parking meters is transferred into an Off - Street Parking Reserve in the General Fund. This transfer is approximately $250,000 annually. The current balance in the reserve is approximately $1.6 million. Staff proposed eliminating the transfer of this parking meter revenue to the Off- Street Parking Reserve until the General Fund Stabilization Reserve had reached the Council goal of 15 percent of • General Fund operating expenditures. The Off- Street Parking Reserve would remain at $1.6 million and would increase annually with interest earnings. Motion was made by Mayor Hedges to continue to make the offstreet transfer ($250,000) that is not in the budget. Tom Hyans, President of the Central Newport Beach Community Association, expressed that the $250,000 belongs in the Off - Street Parking Reserve for the repair, restoration, addition of parking areas, vehicle storage, etc., to the tourist- traffic -worn parts of town. The money comes from the parking meters and to use part of these funds to repatriate the budget development process without Council approval is not the way to do business. Marcia Dossey, President and Member of the Newport Pier Association, McFadden Plaza area and representing the association, voiced opposition to the transfer of revenue generated in their area through the Off - Street Parking resolution that belongs to their area, and added that in keeping with revitalization of the area, to not transfer $250,000 of these funds to the Off - Street Parking Reserve is in direct conflict with their goals. The motion was voted on and carried by the following roll call vote: Ayes: Debay, Hedges, Glover and Watt • Noes: O'Neil, Edwards, Cox Absent: None Abstain: None Charges for Services: An increase in Charges for Services revenue in the amount of $300,000 was included in the proposed budget as a result of Volume 50 - Page 187 INDEX FY 1996 -97 Budget City of Newport Beach City Council Minutes June 24, 1996 the information generated by the KPMG Peat Marwick Cost of Services Study. The Study indicated that City Services are currently being subsidized by general tax revenues in excess of $1.0 million per year. City Manager Murphy mentioned that the Council had given direction to staff to increase certain fees, i.e., Residential Building Records and other • Planning and Building fees to bring the fees of the City in line with the actual cost of services. Motion by Mayor Hedges to not budget the $300,000, in the absence of Council action on the identified fee increases as a result of the studies. Tom Hyans, 219 29th Street asked whether or not the revenue received from the recent increases in the water and sewer use charges were included in the budget, and he was told that they were not included to the proposed budget but were now included since the Council has acted on the increases. The motion was voted on and failed by the following roll call vote: Ayes: Hedges, Glover Noes: O'Neil, Edwards, Debay, Cox, and Watt Absent: None Abstain: None Mayor Hedges instructed the Council that the motion to include the Increased Charges for Services revenue will require an affirmative vote of the Council. Motion by Council Member O'Neil to budget $300,000 in Increased Charges for Services revenue as identified by the KPMG Study was voted on and carried by the following roll call vote: • Ayes: O'Neil, Edwards, Debay, Cox and Watt Noes: Hedges, Glover Absent: None Abstain: None Document Imaalna: Request from the City Clerk for a document imaging system which would provide a base program expanded to multiple departments, as well as funding the first module within the City Clerk's office. Motion by Mayor Hedges to include the document imaging system in this year's General Fund Capital Improvement program at the lease /purchase rate ($75,000 a year) to purchase a City -wide system. Council Member Glover advised, in answer to Council Member Debay's Inquiry, this Item was placed on the budget checklist by the Finance Committee for consideration by the City Council. City Manager Murphy added that there were many quality projects submitted, including the document imaging system, that he would have liked to see included in the budget. This was a judgment call, although It is a very worthy project from a record keeping /retrieval standpoint. If the Council feels they want to include this in the budget, he would be forced • to look at reducing some of the maintenance of City Hall, Police Facility and a variety of other capital projects. Bo Clawson, 1411 North Bay Front, asked if anybody has done an independent cost benefit analysis given the current technology, how fast H is moving and the fact that prices for technology are dropping. Volume 50 - Page 188 INDEX FY 1996 -97 Budget City of Newport Beach City Council Minutes June 24, 1996 INDEX In response to City Manager Murphy and Council regarding a preliminary study, Paul Malkemus, MIS Manager, advised that a rough guess for the cost of such a study would be in the neighborhood of $10,000 - $15,000. • Substitute motion made by Council Member Waft to move forward on a less costly basis and authorize $25,000 for the study and a plan to be Included in the 1996 -97 Budget. Mayor Hedges moved to amend the substitute motion to authorize $75,000 to do the study and plan, and to use the balance of the funds to acquire the system. (If additional funds are needed this would be accomplished by way of a budget amendment.) The amendment died for lack of a second. Motion by Mayor Hedges to amend the substitute motion to direct staff to initiate the RFP and expedite this study within 30 days carried by the following roll call vote: Ayes: Edwards, Debay, Hedges, Cox, Glover and Watt Noes O'Neil Absent: None Abstain: None Council Member Watt's substitute motion was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None • Abstain: None Notebook Computers: Two notebook computers assigned to the MIS Division to permit their checkout for use by employees while traveling on City business, or while working at home on an important work - related project, and still permit them to access the City's network via modem. City Manager Murphy concurred in the recommendation to include money in the 1996 -97 budget for this request advising that 0 the Council so desires, he will find the additional $5,000 requested. As a matter of clarification, it was advised that there is $20,000 already budgeted and the request is for an additional $5,000. Motion by Council Member Glover to increase the budget by $5,000 for notebook computers for the 1996.97 fiscal year, was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: None Human Services and Arts and Cultural Grants: By acclamation of the City Council, these two issues were considered together, Human Services • Grant for $25,000 and Arts and Cultural Grant for $40,000. Motion by Mayor Hedges to delete from the budget $65,000 for both the Human Services and Arts and Cultural Grants died for lack of a second. Volume 50 - Page 189 FY 1996 -97 Budget City of Newport Beach City Council Minutes June 24, 1996 Edwards to include the for the two grant programs. in the budget Roya Fouladi, Chairman of the Newport Beach Arts Commission, presented statistics to the Council regarding worthy grant applicants and • what the $40,000 bought last year, i.e., visiting artist from the Newport Harbor Art Museum brought in for nine- weeldy sessions in the classrooms of Newport Harbor High School and Ensign Intermediate which culminated in the exhibit at City Hall; art lessons taught to first graders at Newport -Mesa Schools and a tour of the Art Museum; support for Baroque Music Festival; Ballet Pacifica that brings the children's ballet to kindergarten through 6th graders; Master Chorale that give five morning concerts at each of the City's elementary schools, Newport-Mesa Schools Foundation Grant to teachers who incorporate art into their curriculum; Orange County Philharmonic Grant giving concerts in Newport Harbor High School (60 -piece professional orchestra); Opera - Pacific's Holiday Program at Oasis Senior Center and at Newport Harbor High School; Pacific Chorale receives a grant serving over 300 children at Mariners Elementary School with their children's chorus performing at Orange County Performing Arts Center and busing the children to see that; Pacific Symphony who provide ensemble performances at the Oasis Senior Center and conducted dozens of music training clinics for the instrument students at Corona del Mar High School and last week's South Coast Repertory brought 10 performances to Newport Beach Elementary Schools of a professional theater production. She added that this next year the funds will have to be spread out a little thinner, and asked support for the $40,000 grant money, emphasizing implementation of Council Policy 1 -12 which authorizes a $55,000 Arts Commission grant Fund. • Mayor Hedges commented that Arts and Cultural and Human Services Grants are worthy projects, but he doesn't agree that they are a responsible use of general tax revenues. The motion was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Noes: Hedges Absent: None Abstain: None Debay, Cox, Glover and Watt AQMD Grant: Replacement of 10 refuse trucks (a portion of the funding for the replacement of these trucks would be utilizing AB 2766 Competitive Grant moneys for which the City applied and was awarded $413,000. Council is to reserve judgment until the next Council meeting for a comprehensive analysis and a recommendation. Motion by Mayor Hedges to defer consideration on the foregoing to July 8, was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: None Summer Refuse Collection on Balboa Island: Staff is recommending the continuation of Option A as currently budgeted (Central and West Newport $14,824). Motion by Council Member Waft for Option B (Central, West Newport, and Balboa and little Balboa Islands - $34,069) and work with Balboa Island Volume 50 - Page 190 INDEX FY 1996 -97 Budget City of Newport Beach City Council Minutes June 24, 1996 and the staff to find the most fiscally conservative limited plan that would satisfy the basic issue, i.e., the trash accumulated from the short term rentals. John Noyes, President of the Balboa Island Business Association, • suggested that a regular City employee drive the truck and use of additional summer help loading the trash, as he feels that this should have been part of the budget. City Manager Murphy advised that the estimated revenue generated on an annual basis collected on Balboa Island in transient taxes is $86,000, and suggested more vigorous enforcement as a way to deal with the transient trash. The motion was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: None Transportation Management Associations (TMA'S) and City Rideshare Proaram: Staff's recommendation is to review the proposed allocations ($30,162) at the meeting of July 8 or 22, 1996, with full information presented then. Motion by Mayor Hedges to include the TMA'S and Rideshare Program funding and review these programs on July 22, 1996, was voted on and carried by the following roll call vote: Vehicles: Request to rebudget the five vehicles referred to by City Manager Murphy from the current fiscal year to the next fiscal year. Motion by Council Member Cox to approve the foregoing was voted on and carried by the following roll call vote: Ayes: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt None Noes: None • Absent Abstain: None None Vehicles: Request to rebudget the five vehicles referred to by City Manager Murphy from the current fiscal year to the next fiscal year. Motion by Council Member Cox to approve the foregoing was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: None Motion by Council Member Cox to adopt Resolution 96 -44 adopting the budget for the 1996 -97 Fiscal Year, including any amendments as part of the final budget review was voted on and carried by the following roll call vote. Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Watt Noes: None Absent: None Abstain: None 24. BOARD AND COMMISSION VACANCIES. • Mayor Hedges referred members of the Council to the staff report and agenda regarding the nominees, advising that It might get a little more complicated when voting. Volume 50 - Page 191 INDEX Boards /Commissions (24) City of Newport Beach City Council Minutes June 24, 1996 Mayor Pro Tem Deboy reported that she would like to know If there any current vacancies on the standing committees, as she felt that it individuals interviewed and not appointed to commissions could appointed to vacancies on the Citizens Advisory Committees. INDEX Orel Library Board be • Motion by Council Member Cox to reopen nominations for the library Board. As a matter of clarification, it was noted that Cynthia Hollern withdrew as a nominee on the library Board. The motion was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Cox and Walt Noes: Hedges, Glover Absent: None Abstained: None As a result of the foregoing, Council Member Cox nominated Jim Wood to be added to the list of nominees for the library Board. Motion by Council Member O'Neil to close the nominations was voted on and carried by the following roll call vote: Ayes: O'Neil, Edwards, Deboy, Hedges, Cox, Glover and Waft Noes: None Absent: None Abstain: None Mayor Hedges advised that the method of voting would be by majority • votes per nominee to elect the various Boards and Commissions Members. BOARD OF LIBRARY TRUSTEES (1 vacancy) Two votes were cast for Joanne Lombardo, four for Jim Wood and none for Susan Smith, therefore James Woods was appointed to a 4 -year term ending June 30, 2000. PLANNING COMMISSION (2 vacancies) Two votes were cast for Rob Palteson, two for Richard Fuller, four votes for Thomas Ashley, and six votes for Tod Ridgeway: therefore Thomas Ashley was appointed to a 4 -year term ending June 30, 2000 and Tod Ridgeway was reappointed to a term ending June 30, 2000. PARKS. BEACH & RECREATION COMMISSION (1 vacancy) Six votes were cast for Malcolm Dunn and one vote for Timothy Brown, therefore Malcolm Dunn was appointed to a 4 -year term ending June 30, 2000. ARTS COMMISSION (4 vacancies: two 4 -year terms; one 3 -year term; one 2 -year term with nominees receiving the least number of votes of the top four to have the shorter terms.) • Four votes were cast for Kenneth Marshall, seven for Lyn Belasco, none for Sunny Pedno, one for Rosalind Wells, four for Michael Coon, seven for Mary Macintyre, one for Winnie Ross, and three for Nancy Warzer- Brady. Based on the votes cast, Kenneth Marshall was appointed to a 2 -yeas term ending June 30, 1998, Lyn Belasco was appointed to a 4 -year term Volume 50 - Page 192 Planning Commission PB &R Commission Arts Commission City of Newport Beach City Council Minutes June 24, 1996 ending June 30, 2000, Michael Coon was appointed to 3 -year term ending June 30, 1999, and Mary Maclntyre was appointed to a 4 -yeas term ending June 30, 2000. CIVIL SERVICE BOARD • Mayor Hedges advised that there was a delay in getting applications from the Police and Fire Associations for the additional nominees, Susan Thomas, Cora Newman and Rolla Dory, and that Rolla Dory had withdrawn her name (the City Charter requires five nominees as electors of the City). Motion by Mayor Hedges to continue the selection of the Civil Service Board Members to July 8, 1996 and that the incumbents act in their positions pending reappointments or appointments. Clint Hoose, 7 Coventry, and Civil Service Board incumbent, asked for clarification from the City Attorney, wherein, It was restated per the Municipal Code that, "Two members shall be appointed by the City Council from a list of five persons to be nominated by vote of the employees in the Classified Service, two members shall be appointed by the City Council directly, and the fifth shall be appointed by the City Council from a list of three persons nominated by a majority of the four thus appointed." In response to Council Member Edward's Inquiry, Mr. Burnham further advised that the Charter's procedure prevails stipulating that those nominees shall be qualified electors. The motion was voted on and carried by the following roll call vote: 25. UPDATE ON CONDOMINIUM CONVERSIONS AND CONSIDERATION Of AN INTERIM URGENCY ORDINANCE PROHIBITING CONVERSIONS ON BALBOA ISLAND DURING A 45 -DAY PERIOD. (Requested by Council Member Walt) Council Member Waft stated the update was prompted by concerns of Balboa Island homeowners that a particular condominium conversion was pending before the Modifications Committee. As a result, she requested that this issue be brought before the City Council in support of an urgency ordinance, and therefore made a motion to have a 45 -day planning study conducted regarding the impacts condominium conversions would have on the surrounding neighborhoods and the 1-1 1/2 Zoning District. This urgency action is not retroactive to any project that has been introduced already. Loretta Zimmerman, 327 Sapphire Avenue, made the Council aware that a large portion of the community is adamantly opposed to not only the pending condominium conversion, but future condominium conversions on Balboa Island as this would contribute to an already overcrowded parking situation (current parking requirements for new single family homes is three off street parking spaces and new duplexes Is four off street parking spaces vs. a condominium with two separate owners ® sharing a two -car garage). Dual ownership of single residences and properties would be promoted by unrelated individuals without the proper controls of CCR's and legal guidelines (i.e., membership dues, property maintenance, etc.). Volume 50 - Page 193 INDEX Civil Service Board Urgency Ord 96 -25 Moratorium on Condom Cnvrsns on Balboa Island (68) Ayes: Edwards, Debay, Hedges, Glover and Watt • Noes: Absent: Cox, O'Neil None Abstained: None 25. UPDATE ON CONDOMINIUM CONVERSIONS AND CONSIDERATION Of AN INTERIM URGENCY ORDINANCE PROHIBITING CONVERSIONS ON BALBOA ISLAND DURING A 45 -DAY PERIOD. (Requested by Council Member Walt) Council Member Waft stated the update was prompted by concerns of Balboa Island homeowners that a particular condominium conversion was pending before the Modifications Committee. As a result, she requested that this issue be brought before the City Council in support of an urgency ordinance, and therefore made a motion to have a 45 -day planning study conducted regarding the impacts condominium conversions would have on the surrounding neighborhoods and the 1-1 1/2 Zoning District. This urgency action is not retroactive to any project that has been introduced already. Loretta Zimmerman, 327 Sapphire Avenue, made the Council aware that a large portion of the community is adamantly opposed to not only the pending condominium conversion, but future condominium conversions on Balboa Island as this would contribute to an already overcrowded parking situation (current parking requirements for new single family homes is three off street parking spaces and new duplexes Is four off street parking spaces vs. a condominium with two separate owners ® sharing a two -car garage). Dual ownership of single residences and properties would be promoted by unrelated individuals without the proper controls of CCR's and legal guidelines (i.e., membership dues, property maintenance, etc.). Volume 50 - Page 193 INDEX Civil Service Board Urgency Ord 96 -25 Moratorium on Condom Cnvrsns on Balboa Island (68) • • City of Newport Beach City Council Minutes June 24, 1996 Jay Greer, 1207 North Bay Front, expressed his concerns over the quality of life, and the fact that the single family residence at 1209 North Bay Front was never intended to be a duplex or a condominium. He commended the Council for taking immediate action by either exempting Balboa Island from Ordinance No. 94 -47 and holding the pending condominium application and all others until an EIR has been made and a reasonable solution found. Bo Clawson, 1411 North Bay Front, also expressed his thanks to the Council and urged them to delay any action on the pending condominium conversion request rather than making a hasty decision. Pat Buderwitz, 221 Sapphire, Balboa Island, has worked with the Planning Department on the Committee to review the standards and specifications on Balboa Island and was very pleased with the letters to Council, and Council Member Watt's timely response to the issue. Bill langjahr, 1211 North Bay Front, urged the Council to pass the urgency ordinance sponsored by Council Member Waft; but expressed disappointment that the application at 1209 North Bay Front was not included; as changing ownership is of concern, adding that the current ordinance is counterproductive to all other efforts to solve parking problems on Balboa Island, particularly when building a new structure with two units (four parking spaces) and further impaction by business parking. Council Member Waft added that Balboa Island's problems are small lots, bulk mass, parking and congestion and population. The trend over the last few years has been to buy property which was converted from duplex to single family, and the City needs to specify that when a duplex is converted to a condominium it stays that way, i.e., a two - family unit maximized as much as possible in terms of its use and If if's an old one, that N stays with Us two parking spaces instead of four. The motion was voted on to adopt Urgency Ordinance No. 96 -25 amending Titles 19 and 20 of the Newport Beach Municipal Code revising the City's Condominium Conversion Regulations and carried by the following roll call vote: Ayes: O'Neil, Edwards, Debay, Hedges, Cox, Glover and Waft Noes: None Absent: None Abstain: None MOTION FOR RECONSIDERATION - None ADJOURNED at 11:26 p.m. Volume 50 - Page 194 INDEX Balboa Island/ Condom Cnvrsns City of Newport Beach City Council Minutes June 24, 1996 The agenda for this meeting was posted on June 19, 1996 at 4:10 p.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Attest: tll j h4. / &zt� City Clerk (Acting) • • Mayor Volume 50 - Page 195 INDEX