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HomeMy WebLinkAbout01/12/1998 - Regular Meeting0 • u CITY OF NEWPORT BEACH City Council Minutes Regular Meeting January 12, 1998 - 7:00 p.m. - None RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Thomson, Debay, O'Neil, Hedges, Glover, Noyes, Mayor Edwards Absent: None Pledge of Allegiance — Council Member Debay. Invocation by Chief Chaplain George B. Vogel, VA Medical Center, Long Beach. Presentation by Newport Harbor High School Students of "I Can Make A Difference" Program relative to traffic concerns at the school. Presentation by EQAC of 1998 Calendar. Presentation of Proclamation to the Friends of the Library commending them for 40 years of support and dedication to the Newport Beach Public Libraries. MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- Council Member Debay announced that the Plein Air Show will be held on January 24 at the Orange County Museum of Art from 6 to 9 p.m. She pointed out that the City will receive 15 percent of the proceeds to assist with bay dredging and maintenance. • Council Member Debay announced that Police Captain Jim Jacobs' retirement party will be held at the Balboa Pavilion from 5 to 8 p.m. on January 16 and that interested parties can contact the Police Department for more information. • Council Member Hedges requested that an item be put on a future agenda regarding appointment of aides for individual council members. He pointed out that this would lessen Council's need to utilize City staff. • Mayor Edwards reported that Senator Kopp is sponsoring a bill to give local municipalities home rule regarding home care facilities. He stated that Volume 51 - Page 568 INDEX City of Newport Beach City Council Minutes January 12,1998 INDEX more information can be obtained from Assistant to the City Manager Mff. CONSENT CALENDAR READING OF MINUTES/ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE REGULAR MEETING OF DECEMBER 8, 1997 AND THE ADJOURNED REGULAR MEETING OF DECEMBER 15, 1997. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. RESOLUTION FOR ADOPTION 3. Removed from the Consent Calendar by Dolores Otting. 4. VACATION AND ABANDONMENT OF AN EASEMENT FOR Res 98 -2 DRAINAGE ACCEPTANCE AND ACCOMPANYING I NDEMNIFICA- Easement Vacation TION AGREEMENT ACROSS PARCEL 1 OF PARCEL MAP 91.157 Parcel Map 91 -157 LOCATED AT 3014 BREAKERS DRIVE IN CORONA DEL MAR. (90) Adopt Resolution No. 98 -2 ordering the summary vacation and • abandonment of an unused easement for drainage acceptance and accompanying indemnification agreement recorded in the Orange County Recorders Office on December 14, 1994, Document No. 94- 0712386, Official Records of Orange County; and direct the City Clerk to have the Resolution recorded by the County Recorder. G. Removed from the Consent Calendar by Council Member Hedges. 6. RESOLUTION NO. 98.4 AUTHORIZING THE GENERAL SERVICES Financial DIRECTOR TO EXECUTE APPLICATIONS ON BEHALF OF THE Assistance CITY FOR THE PURPOSE OF OBTAINING FEDERAL FINANCIAL (87) ASSISTANCE UNDER THE NATURAL DISASTER ASSISTANCE ACT, AND /OR STATE FINANCIAL ASSISTANCE UNDER THE DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT OF 1988. 7. Removed from the Consent Calendar by Council Member Noyes. CONTRACTS AND AGREEMENTS S. Removed from the Consent Calendar by Dolores Otting. 9. UNDERGROUND UTILITIES IN THE ALLEY BOUNDED BY BA -028 GOLDENROD AVENUE, OCEAN BOULEVARD, HELIOTROPE Underground AVENUE AND BAYVIEW DRIVE IN CORONA DEL MAR Utilities/AD 82 (PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 82). (40/89) Authorize Budget Amendment (BA -028) to appropriate $35,000 in the Assessment District Capital Project Fund to proposed Assessment District • No. 82 Goldenrod/Hehotrope/Bayview, Account No. 7401- C5200419; and Volume 51 - Page 569 • • • City of Newport Beach City Council Minutes January 12, 1998 authorize the City Manager to execute a Professional Services Agreement with Berryman and Heniger, Inc. in an amount not to exceed $22,000 for assessment engineering services. 10. Removed from the Consent Calendar by Council Member Glover. 11. LABOR NEGOTIATIONS CONTRACT (C- 3075). Approve contract with William Avery & Associates for the performance of all requested or required services within the Labor Relations Activities of the City. 12. MARINAPARK MANAGEMENT CONTRACT. Approve the Property Management Agreement with Bendetti Management Group for management of the Marinapark Mobile Home Park. 13. CITY OF NEWPORT BEACH AND CITY OF IRVINE AGREEMENT REGARDING DETACHMENT /ANNEXATION OF PLANNING AREA 26A (BONITA CANYON). Approve agreement. MISCELLANEOUS ACTIONS AGENDA FOR JANUARY 8, 1998. 15. BUS SHELTER AGREEMENT WITH METRO DISPLAY ADVERTISING. Consent to the sale of the majority stock of Metro Display Advertising to Eller Media. 16. APPROVE BUDGET AMENDMENT (BA -029) TO APPROPRIATE FROM THE GENERAL RESERVE THE AMOUNT OF $12,500 FOR ADDITIONAL FUNDING FOR PRODUCTION OF A CITY NEWSLETTER, AS APPROVED BY THE CITY COUNCIL ON DECEMBER 8, 1997. 17. APPROVE BUDGET AMENDMENT (BA -030) TO APPROPRIATE LIBRARY DONATIONS IN THE AMOUNT OF $2,387 TO SALARIES, ADVERTISING AND SPECIAL DEPARTMENTAL SUPPLIES. 18. APPROVE BUDGET AMENDMENT (BA -031) TO APPROPRIATE AN ADDITIONAL $25,000 FOR CONTINUED REFORESTATION PROJECTS. 19. APPROVE BUDGET AMENDMENT (BA -032) TO APPROPRIATE FROM THE GENERAL RESERVE THE AMOUNT OF $2,500 FOR FUNDING THE BACK BAY ART SHOW, JOINTLY SPONSORED BY THE CITY OF NEWPORT BEACH AND THE LAGUNA PLEIN AIR PAINTERS ASSOCIATION IN ADVANCE OF RECEIPT OF DONATIONS FROM THE SALE OF THE PAINTERS. 20. Removed from the Consent Calendar by Mayor Pro Tem O'Neil. 21. EMPLOYMENT OF FORMER CITY EMPLOYEE. Authorize the Public Works Department to hire retiree, William McCartney, as a temporary Volume 51 - Page 570 10 9 '1 C -3075 Labor Negotiations (38/66) Marinapark Mgmnt Agr C -2983 (73) Bonita Canyon Annexation (21) Planning (68) Bus Shelter Advertising (74) BA -029 City Newsletter (33/40) BA -030 Library Donations (40/50) BA -031 Reforestation (40/44/62) BA -032 Back Bay Art Show (40) Personnel (66) City of Newport Beach City Council Minutes January 12, 1998 INDEX • Parking Meter Serviceworker to work until the start date of the newly hired Parking Meter Serviceworker. 22. Removed from the Consent Calendar by Dolores Otting. 23. APPROVE THE APPOINTMENT OF PLANNING COMMISSIONER EDC Appointment ED SELICH TO THE ECONOMIC DEVELOPMENT COMMITTEE TO (24) REPLACE MICHAEL E RANZLEY. Confirm the appointment of Ed Selich. S33. AWARD OF CONSTRUCTION CONTRACT FOR THE MARGUERITE C -3171 AVENUE SEWER MAIN REPLACEMENT PROJECT (C- 3171). Marguerite Ave Approve the plans and specifications for the construction of the Marguerite Sewer Main Avenue Sewer Main Improvement Project (C- 3171); award Contract No. Replacement 3171 to Trautwein Construction of Fontana, California, in the amount of (38) $58,900 and authorize the Mayor and City Clerk to execute the contract on behalf of the City. MOTION BY MAYOR PRO TEM O'NEIL TO APPROVE THE CONSENT CALENDAR, EXCEPT FOR THOSE ITEMS REMOVED (3, 5, 7, 8, 10, 20, and 22). Without objection, the motion carried by acclamation. ITEMS REMOVED FROM THE CONSENT CALENDAR • 3. RESOLUTION NO. 98.1 APPROVING AGREEMENT TO TERMINATE Res 98 -1 NON - EXCLUSIVE SOLID WASTE FRANCHISE AGREEMENT 5 Star Rubbish Agr BETWEEN THE CITY OF NEWPORT BEACH AND 5 STAR (42) RUBBISH. Dolores Otting, owner of 5 Star Rubbish, thanked the City for allowing her company the opportunity to handle the City's refuse pickup. Ms. Otting expressed the opinion that the franchise fee, which increased to 13 percent, is one of the highest in the business; that the fee is being used for non -trash related expenditures and should be investigated; and that the fee should be decreased for businesses. Motion by Mayor Pro Tem O'Neil to adopt Resolution No. 98 -1 approving the agreement to terminate the non - exclusive solid waste franchise agreements between the City of Newport Beach and 5 Star Rubbish. Without objection, the motion carried by acclamation. 5. RESOLUTION NO. 98 -3 SUPPORTING FUNDING MECHANISM FOR Res 98 -3 CAL-ID AUTOMATED FINGERPRINT IDENTIFICATION SYSTEM. Fingerprint ID System Council Member Hedges expressed the opinion that the County believes (54170) they will not be accountable to the public if they impose the $1 vehicle registration fee in the form of a resolution. He estimated that the residents • would be paying $350,000 over five years when the City's share is only $265,000. He suggested the City pay its share rather than impose another tax. Volume 51 - Page 571 • City of Newport Beach City Council Minutes January 12, 1998 Motion by Council Member Deb av to adopt Resolution No. 98 -3 supporting the imposition in Orange County of a $1 fee on vehicle registrations, renewals and supplemental applications for registrations as authorized by Statute; and direct staff to transmit this resolution to the Board of Supervisors for consideration at their January 13, 1998 meeting. The motion carried by the following roll call vote Ayes: Thomson, Debay, O'Neil, Noyes, Mayor Edwards Noes: Hedges, Glover Abstain: None Absent; None 7. RESOLUTION NO. 98 -5 AND RESOLUTION NO. 98 -6 APPROVING SALARY ADJUSTMENTS FOR CITY MANAGER AND CITY ATTORNEY. Motion by Mayor Pro Tern O Neil to adopt Resolution Nos. 98 -5 and 98 -6, approving salary adjustments for the City Manager and City Attorney. Council Member Noyes stated that, although the City Manager's position has not been reviewed in four years, he is reluctant to increase the City • Manager's salary and is uncomfortable with relinquishing his right to review the position in June. He expressed the opinion that the City Manager's position should be reviewed annually. Council Member Glover reviewed the recommendation that the City Manager receive a five percent increase retroactive to January 1, 1997, and another five percent increase on July 1, 1998. She reported that the recommendation came from a committee consisting of Mayor Edwards, Mayor Pro Tom O'Neil, and Council Member Debay. Council Member Glover commented that the City Manager has not received a salary increase since he started working for the City and that he has consistently achieved the City's goals and objectives. However, she expressed the opinion that he should be more frugal and create more reserves in the City's budget. In response to Council Member Glover's statements, Council Member Hedges stated that the City Manager's current salary is still lower after six years than the past Manager's leaving salary. He expressed the opinion that the City has benefited from the City Manager's employment. Council Member Hedges stated that the City Council has always chosen to increase revenue when given the choice between increasing revenue or cutting expenditures. Further, that it is Council's responsibility, not the City Manager's, to set the reserve policy. He expressed his support of both salary increases. Council Member Debay clarified that the City Council reviews the City • Manager's position annually but has not increased it. She reviewed the salary budgetary challenges over the past five years and noted that the proposal only reflects a two percent increase over the past five years. She Volume 51 - Page 572 INDEX Res 98 -5/Res 98 -6 Salary Adjustment C -2897 - CMgr C -3003 - CAtty (38/66) City of Newport Beach City Council Minutes January 12, 1998 • stated that she feels justified in supporting the motion. Without objection, the motion carried by acclamation. 8. SEWER USE AGREEMENT WITH IRWD. Dolores Otting expressed her concerns relative to entering into an agreement with IRWD; the City's contribution costs for the Bison Avenue wastewater pump station; and the reclaimed water process. Motion by Mayor Pro Tem. O'Neil to approve a sewer service agreement with IRWD to allow the City to abandon the Jamboree Road and the Bison Avenue wastewater pump stations and to provide for IRWD to accept the wastewater from the areas tributary to these two pump stations. Council Member Debay stated that she is the Chairperson for the Public Works Committee and invited Ms. Otting to attend the meetings since her concerns tonight cover many topics. She stated that the proposed agreement saves the public approximately $700,000; that the City is working with IRWD since their system is gravity -flow; and that the pumps are outdated. Public Works Director Webb reported that there was a pipe failure at the Bison Avenue station on Thursday and that the City had to use the gravity • bypass system. He pointed out that the developer of the tract was required to either increase the size of the station to compensate for the increased use or provide funding to abandon the station and utilize the IRWD station. He further pointed out that the annual maintenance cost is eliminated if the City approves the agreement with IRWD. In response to Council Member Hedges' questions, Mr. Webb clarified that the developer will pay the City for some of the incurred costs; that the IRWD station serves twice as many households as the developer's station; and that the City will be paying a small amount for the annual costs of the new station. Council Member Hedges recommended that the City pay IRWD an annual fee. Without objection, the motion carried by acclamation. 10. DOCUMENT IMAGING. In response to Council Member Glover's question, MIS Director Malkemus stated that the recommendation to include all City departments in the project came from information gathered from the needs assessment study. Council Member Hedges stated that it was his understanding that the system expanded because the City Clerk's office needed access to every document in the City. • Bob Berghell, Berghell and Associates, confirmed that the original plan was focused mainly on the City Clerk's Office. However, after conducting the Volume 51 - Page 573 INDEX C -3208 Sewer Use/IRWD (38) Document Imaging C -3182 (32/38) • • 0 City of Newport Beach City Council Minutes January 12, 1998 study, it became evident that the Police Department had substantive needs and security issues that needed addressing. Council Member Hedges emphasized that the most important aspect of the system is the public's ease in accessing documents through the internet. Motion by Mayor Pro Tern O Neil to approve the award of a contract for document imaging to Berghell Associates in the amount of $650,002. Without objection, the motion carried by acclamation. 20. PARAMEDIC TRAINING FOR NEWPORT COAST. Mayor Pro Tem O'Neil stated the importance of having trained paramedics on site if the annexation of the Newport Coast were approved. However, he expressed concern that approving this action would give the appearance that the City has predetermined to approve the Newport Coast annexation. Council Member Thomson, Chairman of the Public Safety Committee, reported that the City would save $100,000 if the three paramedics were trained at this time; that they may be pulled from the school if needed; and that the City would have three trained paramedics on board even if the annexation was not approved. Council Member Noyes pointed out that the paramedics would not be promoted until either the annexation is approved or a position is available. Council Member Hedges expressed the opinion that the City is under no obligation to provide paramedic service to this station; that paramedic services can be provided through existing resources; that the City could contract for these services, if needed; and that it is premature to send people to paramedic training at this time. Council Member Thomson pointed out the need to provide citizens with the highest level of service. He expressed the opinion that the City benefits when its employees are trained from within. Motion by Council Member Thomson to 1) authorize the Fire and Marine Chief to send three firefighters to paramedic school in anticipation of the Newport Coast annexation; 2) authorize Budget Amendment (BA -033) to transfer $107,460 from the Hoag Hospital Paramedic Program Designated Reserve account 010 -3732 to the Fire and Marine Department budget to cover the one -time costs associated with paramedic training; and 3) authorize the Fire and Marine Chief to withdraw the firefighters from paramedic school if the City Council subsequently decides to not proceed with an annexation application. In response to Council Member Noyes' question, City Manager Murphy stated that the funds for the training would come from the Hoag Hospital reserve that was set aside for emergency medical service purposes. In response to Mayor Edwards' questions, Mr. Murphy clarified that the Volume 51 - Page 574 i0 1 ' BA -033 Paramedic Training (21/40/41) • • C� City of Newport Beach City Council Minutes January 12, 1998 next paramedic class begins in August and that an additional overtime cost of $90,000 will be incurred if training is delayed. Mayor Edwards suggested sending at least one individual to training. Mayor Pro Tem O'Neil stated that he would like some type of assurance from the candidates that they understand that a pay increase may not occur if the annexation is not approved. Council Member Glover stated that she will probably support the training and pointed out that the Council may be voting on the annexation on February 23. Council Member Hedges Presented a substitute motion to train all existing fire and police personnel to become qualified paramedics. The substitute motion failed by the following roll call vote Ayes: Hedges Noes: Thomson, Debay, O'Neil, Glover, Noyes, Mayor Edwards Abstain: None Absent: None Council Member Thomson's motion carried by the following roll call vote: Ayes: Thomson, Debay, O'Neil, Glover, Noyes, Mayor Edwards Noes: Hedges Abstain: None Absent: None 22. FLETCHER JONES MOTORCARS LIGHTING. Assistant City Manager Wood reviewed the staff report, stating that the main concern at this time deals with interior lighting. She stated that staff recommends not issuing the final Certificate of Occupancy until the lighting issues have been resolved and a 30 day inspection has been completed. However, Council can authorize issuance of the Certificate of Occupancy, if desired, and require Fletcher Jones Motorcars to submit a security deposit until the lighting issues are resolved. In response to Mayor Edwards' questions, Ms. Wood expressed the opinion that the lighting issue can be resolved in about two weeks but the landscaping issue may take longer. Hillary Thamer, 420 Vista Parada, expressed concern relative to the intensity of the interior lighting from 5:30 to 10 p.m. She stated that something needs to be placed against the interior and exterior white walls to dull the brightness. In response to Mayor Edwards' questions, Ted Jones of Fletcher Jones Motorcars noted the efforts made to alleviate the lighting issue and stated that the location for the suggested landscaping area is located offsite of his Volume 51 - Page 575 lei Fletcher Jones Motorcars C -3067 (38) City of Newport Beach City Council Minutes January 12, 1998 facility. INDEX Peter Bryant, 426 Vista Parada, expressed the opinion that the lighting is blinding and too intense for its location; that the planning was inconsistent with the Coastal Act and the California Environmental Quality Act; and that the lighting issue should have been addressed in the Environmental Impact Report (EIR). He stated that he supports staffs recommendations and recommended that Council require that the facility be modified to have low- intensity and highly - directional lighting. He requested that Council allow the public 30 days to review the modifications. In response to Council Member Glover's questions, Ms. Wood stated that there are no lighting standards in the Code; that the EIR did address lighting; that the EIR was certified by the City prior to the project being approved; and that a lighting plan should have been approved at staff level. She stated that a more specific lighting plan was not requested. In response to Council Member Hedges' question, City Attorney Burnham stated that the facility is not in violation of the City's lighting regulation. Carol Hartman, 414 Plata, stated that the timers on the lights are very inconsistent. She requested that the public be given at least 30 days after the project is completed to assess the lighting. In response to Ms. Hartman's . questions, Ms. Wood clarified that the visibility concern surrounding the proposed landscape area deals with motorists on Jamboree Boulevard and that the landscape location under consideration is on the southside of Bayview and both sides of Jamboree. She noted the many environmental concerns surrounding that area. Mayor Edwards suggested that the residents designate one or two individuals to act as key people for Fletcher Jones Motorcars representatives to contact. Mr. Jones assured Council that he will continue to work with the City and the community to resolve this issue. He stated that the timing devices are in place, but that they may be malfunctioning. Following discussion, it was moved by Mayor Edwards to request that the residents designate two or three key people within one week to work with staff on the remaining issues so that staff can work with Fletcher Jones and report back to Council in two weeks. Council Member Noyes expressed the opinion that it is unfair that Mr. Jones is having these problems since the City approved the project. Without objection, the motion carried by acclamation. PUBLIC COMMENTS • David Purves, 532 Vista Grande, commended Council for moving forward with the Bonita Canyon annexation since he believes it will benefit the Volume 51 - Page 576 City of Newport Beach City Council Minutes January 12, 1998 ischildren in the area. Mr. Purves, Coordinator of the East Bluff School Parent Action Committee, announced that their next meeting is January 15 at 7 p.m. at Lincoln Elementary School. Rocky Wheeler, 2607 Bunya Street, expressed the opinion that, although Bison Street does have a traffic problem during limited hours, it is not necessary to close the street. He believed that the City did not receive a majority support from the homeowners and requested that Council at least shorten the trial period. Dolores Otting announced that the water district will be holding a public hearing to discuss reclaimed water issues on January 13 at 3:30 p.m. and 7 p.m. at 10500 Ellis Avenue in Fountain Valley. Ms. Otting expressed the opinion that the $500,000 refuse franchise fee needs more accountability, as she believes it is paying for the insurance on all buildings located in the City. Ms. Otting expressed the opinion that the Hoag Hospital reserve should not be used to train paramedics. • PUBLIC HEARINGS 24. PUBLIC HEARING TO CONSIDER THE RENEWAL OF THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FOR THE 1998 CALENDAR YEAR RENEWAL (contd. from 12/8/97). Principal Planner Douglas reported that the signatures on the protests have been verified, as of December 8, and that he received several rescinded and new protests. He announced that 35 percent of the business owners registered valid protests. Mayor Edwards opened the public hearing. Lewis Akerman, business owner, 333 Marine Avenue, Suite 6, reviewed documents he submitted to Council earlier today. He stated that he calculated a 56.88 percent opposition by the business owners. Mr. Akerman expressed his opposition since he believes the notification process violated Section 36535 of the Streets and Highways Code. In response to Council Member Hedges' question, Mr. Douglas reported that the City's list may be different than Mr. Akerman's list since many of the business owners have rescinded their protests. In response to Mayor Pro Tem O'Neil's concerns, City Attorney Burnham stated that Council can make a decision tonight since the process does • comply with State law. He indicated that he has not personally examined the protests or calculated the percentages. Volume 51 - Page 577 INDEX Ord 97 -37 Marine Avenue BID (27) City of Newport Beach City Council Minutes January 12, 1998 • Nancy Kelly thanked the City for their support. She believed that tl differ because some of the businesses were not on the December 8 list. Ms. Kelly announced that the Board voted, based on information from the Business Improvement District members, to reduce the assessment for any business on the second level to one times its business rate and keeping the first level assessment at two times its business rate. City Attorney verified the appropriate procedure to make this type of change to the ordinance. Howard Silver stated that he rescinded his protest because he was told at the Board meeting that there would be more communication relative to BID issues. He stated that there are benefits to having a BID and that the City should also increase its advertising. He pointed out that this bid is basically a one year extension and may be revoked next year if it is not working. He stressed the amount of support from the merchants at this time. Hearing no further testimony, Mayor Edwards closed the public hearing Mayor Edwards reopened the public hearing. In response to Council Member Hedges' question, Mr. Douglas confirmed • that he provided Mr. Akerman with the rescission forms for review and that Mr. Akerman questioned the validity of one of the signatures. Mr. Akerman took issue with the City's rescission form, stating that his forms were required to provide the address, owner's name, company name, and signature. Mr. Akerman objected to the entire process. Hearing no further testimony, Mayor Edwards closed the public hearing Motion by Council Member Noyes to reintroduce revised Ordinance No. 97- 37 confirming the Marine Avenue Business Improvement District Annual Report and levying the BID assessment for calendar year 1998 (scheduled for adoption on January 26, 1998). In response to Council Member Glover's question, Mr. Burnham reiterated that the City's process substantially complied with State law and that the Council can proceed with a decision. Council Member Thomson supported the BID in concept. However, he expressed the opinion that this is like imposing a tax on the businesses and is not the best solution for the business community. The motion carried by the following roll call vote Ayes: Debay, O'Neil, Glover, Noyes, Mayor Edwards Noes: Thomson, Hedges Abstain: None Absent: • None Volume 51 - Page 578 INDEX C J • City of Newport Beach City Council Minutes January 12, 1998 25. ORDINANCE NO. 98 -1 AMENDING TITLE 20 OF THE NBMC TO REVISE PROPERTY DEVELOPMENT REGULATIONS IN THE R-1.5 DISTRICT TO REQUIRE A MINIMUM OF TWO (2) ENCLOSED PARKING SPACES PER SITE AND TO ALLOW TWO HUNDRED (200) SQUARE FEET OF ENCLOSED PARKING FLOOR AREA TO BE EXCLUDED FROM MAXIMUM GROSS FLOOR AREA LIMITS ( BALBOA ISLAND AND LITTLE BALBOA ISLAND) [PLANNING COMMISSION AMENDMENT 8661. Mayor Edwards opened the public hearing. Hearing no testimony, Mayor Edwards closed the public hearing. Motion by Mayor Pro Tern O'Neil to introduce Ordinance No. 98 -1 for Amendment 866, and pass to second reading on .January 26, 1998. Without objection, the motion carried by acclamation. The Council recessed at 9:30 p.m. and reconvened at 9:42 p.m. with all members present. CONTINUED BUSINESS Motion by Mayor Pro Tem O'Neil to take the Bay Knolls request to change sphere of influence item (Agenda Item No. 28) out of order. Without objection, the motion carried by acclamation. 28. BAY KNOLLS REQUEST TO CHANGE SPHERE OF INFLUENCE. Council Member Thomson excused himself due to a possible conflict of interest. City Manager Murphy reviewed the staff report, pointing out that the City Council Legislative Committee, at its September 26, 1997, meeting, recommended that the Bay Knolls Homeowners Association pay all required fees to adjust its sphere of influence. In response to Council Member Glover's questions, Mr. Murphy confirmed that the recommendations in the staff report resulted from Legislative Committee recommendations and that annexing Bay Knolls is not recommended at this time. In response to Council Member Hedges' question, Mr. Murphy stated that he will investigate whether a former Council made commitments to the homeowners indicating that, if they took certain steps, the City would approve the change to their sphere of influence. Mr. Murphy noted that their property deeds were considered Newport Beach's sphere of influence at one time. Volume 51 - Page 579 1� 1 1 Zoning (94) Bay Knolls Sphere of Influence (21) City of Newport Beach City Council Minutes January 12, 1998 Mayor Edwards reported that the Bay Knolls Homeowners Association came to the City last year with this request and also requested that the City of Costa Mesa release them from its sphere of influence. He noted that being in a sphere of influence does not guarantee annexation. Mayor Edwards opened the public hearing. Jerry King pointed out that the community conducted an assessment of the streets, sidewalks, and drainage areas for the City and raised the necessary funds. He reported that both LAFCO and Costa Mesa are ready to receive the change to the sphere of influence and that LAFCO is willing to waive the fees. Mr. King reiterated that the residents' deeds indicate a Newport Beach address. He confirmed that the residents have moved forward with this process with no funding assistance from the City. In response to Mayor Pro Tern O'Neil's question, Mr. King confirmed that it is not the community's intent to seek annexation at this time if Council were to approve the change to the sphere of influence. John Buchanan, 2215 Donnie Road, requested Council support of this issue. He stated that correspondence was sent to Council indicating Legislative Committee support, staff recommendations, and Costa Mesa's action from June. . Vince Bartalone stated that he was under the impression that his house of 35 years was under Newport Beach's sphere of influence and requested Council support. Hearing no further testimony, Mayor Edwards closed the public hearing. Motion by Mayor Pro Tem O'Neil to support the future Bay Knolls application to LAFCO to change the Sphere of Influence from Costa Mesa to Newport Beach, provided that Bay Knolls pays all necessary LAFCO fees; to direct staff to prepare a letter to the Bay Knolls Homeowners Association supporting their LAFCO application to change their Sphere of Influence only, and specify that any future request by Bay Knolls to annex into the City of Newport Beach would be evaluated per the City Council Policy C -1, Annexation Guidelines. Mayor Pro Tern O'Neil emphasized that Bay Knolls will need to satisfy City Council Policy C -1 and pay all necessary costs prior to considering annexation. Council Member Hedges expressed the opinion that changing the sphere of influence and annexation are the same since both deal with boundary lines. Further, that changing the sphere of influence is a statement by Council to consider this area as a future annexation site. He stated that he cannot support the motion. • Council Member Glover stated that she cannot support the motion as the area abuts her district. She commented that her district currently has a Volume 51 - Page 580 City of Newport Beach City Council Minutes January 12, 1998 • number of traffic problems and does not support to justify the change of influence. The motion failed by the following roll call vote: Ayes: Debay, O'Neil, Mayor Edwards Noes: Hedges, Glover, Noyes Abstain: Thomson Absent: None Council Member Hedges presented a substitute motion to table the issue indefinitely. The motion failed by the following roll call vote: Ayes: Hedges, Glover, Noyes Noes: Debay, O'Neil, Mayor Edwards Abstain: Thomson Absent: None 26. NEWPORT COAST ANNEXATION FINANCIAL ANALYSIS. City Manager Murphy reviewed the staff report, noting that the analysis is • a fiscal model of future revenues and expenditures. He reported that each department will be preparing a budget for the 1998 -1999 fiscal year of how the City is currently budgeted and a separate budget of projected revenues and expenditures. Council Member Glover expressed the opinion that the City should receive guarantees from the builders that their projects will reach the projected valuations. In response to Council Member Glover's questions regarding Casitas Lodging, Mr. Murphy stated that the City has an ordinance that provides an in lieu payment on timeshare units that is equivalent to the transient occupancy tax (TOT) and that the City will not receive TOT on the portion of the lodging that is considered timeshares. He explained that the TOT is not applicable for this lodging because it is in the County, not City. He reported that one of the conditions is that the timeshares be constructed pursuant to a development agreement between the property owner and the City and would be binding for about 8 to 15 years. Council Member Glover suggested that the timeshares operate as current timeshares in the City as a condition of acceptance. Further, that short term rentals also be treated similarly so that the City can receive TOT. Mr. Murphy stated that the report consists of conservative assumptions and that revenue was not assumed for conservative purposes. Council Member Glover stated that the City should encourage the building • of more hotels rather than timeshares as hotel guests tend to spend more money. She took issue with the City possibly maintaining the parks. Volume 51 - Page 581 Q-11 Newport Coast Annexation (21) u City of Newport Beach City Council Minutes January 12, 1998 W 0 Council Member Glover requested and received clarification from Stanley Hoffman of Stanley R. Hoffman Associates relative to Table 4 -1. He stated that the table will be broken down by years for the next meeting. In response to Council Member Glover's question, Mr. Murphy clarified that the Peat Marwick study looked at an individual service and took pieces of departments that provided supporting services. He pointed out that this analysis includes entire departments. At Council Member Hedges' request, Mr. Murphy clarified how the upcoming budget will assist the Council in making its decision prior to voting on February 23. He noted that the budget is a projection based on a per capita extrapolation. In response to Council Member Hedges' questions, Mr. Hoffman clarified that no inflationary factors were included in the analysis and that constant dollars were used. Mr. Hoffman expressed the opinion that extending the analysis too far past buildout would not show a significant change and would stretch out the assumption too far. He added that the hotel rooms were not included in the analysis, but suggested including them in the long term projections. Mr. Murphy stated that Mr. Hoffman requested the most current estimates from The Irvine Company so that he can update the number of units and the projected population for the next meeting. He • pointed out that this would also give a more accurate buildout timeframe. Mr. Hoffman reported that the current valuation according to the assessor's roll is $839 million. This is a $650,000 valuation average. Council Member Hedges requested and received clarification from Mr. Hoffman that the City has not saved $1 million by not approving the annexation last year. He noted that, due to the addition of 150 units last year, the deficit was reduced by about $150,000. Mr. Murphy stated that, since the infrastructure along the coast is new, a number projection was utilized based on current capital improvements for the area. Council Member Hedges recommended developing provisions for a "sinking" fund reserve for maintenance contingencies. In response to Council Member Hedges' questions, Mr. Hoffman stated that, although a market study was not conducted since the area is set apart from any other shopping center, other markets were reviewed and its indirect affects of annexation were investigated. He believed that the residents of the area will not only shop in the annexed area but will generate sales tax dollars throughout the community. Council Member Hedges requested that a list of the various assessment districts in the annexation area be provided at the next meeting. In response to Council Member Hedges' question, Council Member Thomson • stated that the City denied the County's request to take over some of the districts' responsibilities. It was also confirmed that a supermajority provision could be included. Volume 51 - Page 582 • City of Newport Beach City Council Minutes January 12, 1998 �`I► I ITD►:1 In response to Council Member Hedges' question, Mr. Burnham confirmed that the City is not liable for any landslide claims. Mr. Murphy stated that the City would most likely try to recover the costs of clearing landslides from the individual property owners. Mayor Pro Tem O Neil recollected that Council unanimously took a position to not accept any debt obligations through CFDs. He suggested that Council take some type of action that requires a supermajority so that future Councils do not incur anyone's debt. He recommended that the City consider accepting ownership and maintenance of some parks and parkways that are maintained with Mello Roos funds. Mr. Murphy stated that it was his understanding that the County denied Irvine Company's offer of dedication for the parks. He believed the same offer will be made to the City. Mr. Hoffman added that he will need to determine whether the homeowners' association dues are maintaining the parks. Council Member Debay requested that recreation augmentation be determined in the event the City begins maintaining the parks. She stated that this may relieve some of the burden on the City's existing services. Council Member Debay requested that Table 4 -1 be amended to include the percentage of buildout and the amount of population growth on one chart. • Council Member Thomson requested that park personnel be involved in reviewing the infrastructure of the parks. He also requested that Mr. Hoffman prepare an overview regarding TOT issues. In response to Council Member Debay's question, Mr. Hoffman stated that he will verify whether the amount of resale value has been updated in Table 3 -3. Mayor Pro Tem O'Neil expressed the opinion that he would prefer to have the figures not encompass so many variables so that any income generated will simply be a profit for the City. Mr. Murphy pointed out that Page 24 does not include any commercial development. Mr. Hoffman added that The Irvine Company is actually seven percent higher than the valuation in the report. In response to Council Member Thomson's concern relative to resale rates between new and used areas, Mr. Hoffman stated that turnover assumptions were made but that he will verify the information. Mayor Edwards opened the public hearing Tom Hyans, President of the Central Newport Beach Community Association, stated that residents in his area do not want a "new cash drain on resources to subsidize new neighbors." Referencing the Hoffman Report • of December 15, Mr. Hyans pointed out that the Newport Coast, Bonita Creek, and Banning Development will increase the land areas and population by approximately 4,900 acres and 12,000 people; 750 acres and Volume 51 - Page 583 City of Newport Beach City Council Minutes January 12, 1998 • 3,000 people; and 400 acres and 6,000 people, respectively. Mr. Hyans stated that the people of these areas will be expecting the expensive and high -level municipal services. He also expressed the opinion that there is no need to rush the annexation and that buildout should be analyzed to 20 years. With regard to positive cash flow, Mr. Hyans expressed the opinion that current dollars are being used without regard to a traditional annual four to six percent inflationary factor. He noted that property tax revenues are capped at two percent by law. Paul Gerst, 2028 Vista Cajun, expressed concern relative to the drastic amount the annexation would change the complexion of the City. Philip Arst, 2601 Lighthouse, stated that he is speaking as a private resident tonight eventhough he is President of the Community Association Alliance (CAA). He reported that a group of businessmen from the CAA met with Mr. Hoffman and the Finance Committee. He expressed the opinion that the updated Hoffman report should be prepared prior to the February 23 meeting to allow enough time for review. He stated that he has found loss potentials when he compared Proposition 13 limitations with inflationary increases and submitted his analysis. He believed that the Hoffman report needs to include a lack of contingency allowance, a • cannibalism factor, and the cost for police and fire services. He expressed the opinion that the annexation can lose $8 -$10 million over the next 25 years, especially if the City is depending on the building of hotels. Barry Eaton, 727 Bellis Street, expressed the opinion that the analysis was very conservative with regard to the types of services that will be initially provided; that it did not include any TOT from the hotels; that it included park maintenance costs; that it included capital improvements; and the comparative areas used for policing were not guarded communities. He also expressed the opinion that the Casitas Lodging TOT is overestimated. Mr. Eaton commented that there is no provision for the repaving or slurry sealing of the 12 miles of collector streets; there is no allocation for reserve funds to handle contingencies and the inflation factor beyond buildout; and there is no allocation for training costs. Additionally, there should be an annual analysis. He believed that a short term loss will occur but then a mid -range benefit will occur during buildout and for a few years thereafter until the inflationary factor occurs. He expressed the opinion that the City should annex the entire area at this time, especially since the County's policies are advantageous and the City can exert more control over the development specifics and gain the fees. He stated that the residents already use City services and should be paying for the services and voting for their Council. In response to Council Member Glover's question, Mr. Eaton stated that he did not include a 10 percent risk factor when reviewing the report. • Mayor Pro Tom O'Neil noted that the City is basically built out. He stated that Council needs to find a way of guaranteeing that municipal services Volume 51 - Page 584 INDEX City of Newport Beach City Council Minutes January 12, 1998 • continue in the future at its level since costs will Hearing no further testimony, Mayor Edwards closed the public hearing. Motion by Mayor Pro Tem O'Neil to receive the report of City staff and Stan Hoffman and Associates regarding the Financial Impact Analysis of the Newport Coast Annexation; direct City staff to hold community meetings for additional opportunities for community input on January 13, 21 and 28, 1998; and direct staff to provide an updated report and the Legislative Committee for consideration at their January 26, 1998, meeting and have the Legislative Committee report to Council on February 9, 1998. Council Member Glover requested and received clarification from Mayor Edwards relative to including her desire for the developers to guarantee the valuation amounts as a term of agreement. He indicated the difficulty of providing a guarantee. Mayor Edwards stated that the terms and conditions for the annexation will be conducted after Council prepares the application. Mr. Murphy also clarified that LAFCO will receive the application which includes the City's application for the annexation and a plan of services. Without objection, the motion carried by acclamation. • 27. 1998 GOALS. Motion by Council Member Glover to receive the report on City Goals for 1998 and ratify the action of December 15, 1997. Without objection, the motion carried by acclamation. 29. APPOINTMENTS BY THE CITY COUNCIL TO THE CITIZENS ADVISORY COMMITTEES FOR A ONE -YEAR TERM ENDING DECEMBER 31, 1998 (appointed by Council upon recommendation of each Council Member) (contd. from 12/8/97). Motion by Mayor Edwards for the Council Members to call the City Clerk with names of appointees for the Bicycle Trails Citizens Advisory Committee and Harbor Quality Citizens Affairs Committee; place any positions not filled on the January 26, 1998, Agenda; and hold appointments to the EQAC. Without objection, the motion carried by acclamation. 30. UNSCHEDULED VACANCY ON THE CITY ARTS COMMISSION AND APPOINTMENT BY MAYOR OF AN AD HOC APPOINTMENTS COMMITTEE. Motion by Edwards to accept with regrets the resignation of Riki Kucheck effective December 12, 1997; direct the City Clerk to advertise the vacancy • pursuant to Council Policy A -2; and appointed Council Members Thomson and Noyes to serve on the Ad Hoc Appointments Committee. Without objection, the motion carried by acclamation. Volume 51 - Page 585 INDEX 1998 Goals (33) Citizens Advisory Committees (24) Arts Commission (24) • 0 • City of Newport Beach City Council Minutes January 12,1998 31. ORAL UPPER BAY DREDGING UPDATE. Without objection, this item was continued to the January 26, 1998, Council meeting. 32. ORAL AIRPORT UPDATE. Without objection, this item was continued to the January 26, 1998, Council meeting. MOTION FOR RECONSIDERATION - None ADJOURNMENT - 11:45 p.m. xxxxxxxxxxxxxxxxxxxxx +xxxxxxxxx The agenda for the Regular Meeting was posted on January 7, 1998 at 2:45 p.m. and the Supplemental Agenda was posted on January 9, 1998 at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk _.,.,....._. Volume 51 - Page 586 INDEX