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HomeMy WebLinkAbout06/22/1998 - Regular Meeting0 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting June 22, 1998 - 7:00 p.m. INDEX CLOSED SESSION - 5:30 p.m. [Refer to separate agenda from City Attorney] CLOSED SESSION REPORT PRESENTED - None RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Hedges, Thomson, Debay, O'Neil, Glover, Noyes, Mayor Edwards Absent: None Pledge of Allegiance - Council Member Debay. Invocation by Greg Kelley, President of the Newport Mesa Irvine Inter - Faith Council. • MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON - DISCUSSION ITEM): • Council Member Debay announced that a West Newport meeting to discuss Fourth of July issues will be conducted on June 24 at 7 p.m. in the Council Chambers. • Council Member Debay stated that a report was given at the Council of Governments meeting last week regarding the formation of a group to handle the Santa Ana River flood/water quality problems. She requested that staff investigate the group, provide a report to Council, and have Newport Beach represented in the group. • Council Member Thomson congratulated the United States water polo team for capturing the U.S. Water Polo Cup in Newport Beach. He reported that Yugoslavia came in second and Canada was third. • Council Member Thomson reported that the Junior Lifeguard Program began this morning. He stated that over 1,000 youths from Newport Beach are participating in the program and that there are 300 on the waiting list. • Mayor Pro Tem O'Neil expressed concern relative to the large amount of items received in the supplemental agenda. He stated that Council may not have enough time to review these reports since they are received late. • Volume 52 - Page 71 L J C J • City of Newport Beach City Council Minutes June 22, 1998 Mayor Edwards congratulated Bureau, the Hospitality Suites, Palisades Tennis Club for an showcased Newport Beach. CONSENT CALENDAR the Newport Beach Conference and Visitors' the Hyatt, Nu Veen, and Ken Stuart and the extremely successful weekend of tennis that READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE SPECIAL AND REGULAR MEETINGS OF JUNE 8, 1998. 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. ORDINANCE FOR INTRODUCTION 3. ORDINANCE NO. 98 -14 REGARDING CAUSE FOR REMOVAL AND STORAGE OF VEHICLES. Introduce Ordinance No. 98 -14 amending Subsection B to Section 12.40.190 of the NBMC pertaining to cause for removal and storage of vehicles; and adopt Resolution No. 98 -42 designating public beaches and tidelands as no parking areas. ORDINANCE FOR ADOPTION 4. ORDINANCE NO. 98 -13 AMENDING SECTIONS 17.24.010 AND 17.24.050 OF THE NBMC PERTAINING TO PERMITS FOR BEACH EXCAVATION AND APPEAL PROCEDURES FOR HARBOR PERMITS. Adopt Ordinance. RESOLUTIONS FOR ADOPTION 5. GENERAL MUNICIPAL ELECTION - NOVEMBER 3, 1998: ADOPTION OF RESOLUTIONS CALLING THE ELECTION (CANDIDATES ONLY) AND REQUESTING CONSOLIDATION WITH THE STATEWIDE GENERAL ELECTION. Adopt the following resolutions pertaining to the General Municipal Election scheduled for Tuesday, November 3, 1998, pursuant to Section 1000 of the City Charter: a) Adopt Resolution No. 98 -43 Calling and Giving Notice of the Holding of a General Municipal Election to be Held on Tuesday, November 3, 1998, for the Election of Members of the City Council as Required by the Provisions of the City Charter. b) Adopt Resolution No. 98.44 Requesting the Board of Supervisors of the County of Orange to Consolidate a General Municipal Election to be Held on Tuesday, November 3, 1998, with the Statewide General Election to be Held on the Same Date Pursuant to Section 10403 of Volume 52 - Page 72 INDEX Ord 98 -14 Res 98 -42 Removal and Storage of Vehicles (70) Ord 98 -13 Beach Excavation/ Harbor Permits (51) Res 98 -43 Res 98 -44 Nov 3, 1998 General Municipal Election (39) City of Newport Beach City Council Minutes • June 22, 1998 the Elections Code. INDEX 6. Removed from the Consent Calendar at the request of Council Member Hedges. 7. Removed from the Consent Calendar at the request of Council Member Hedges. CONTRACTS AND AGREEMENTS 8. AWARD OF CONTRACT FOR THE BUCK GULLY ACCESS RAMP C- 3094 -A EMERGENCY REPAIRS (C- 3094 -A). Approve the plans and BA -076 specifications; award the contract to Wakeham- Baker, Inc. for the total price Buck Gully of $48,150.00 and authorize the Mayor and City Clerk to execute the Access Ramp contract; establish an amount of $5,000.00 to cover the cost of materials Emergency testing and additional work; authorize a budget amendment (BA -076) to Repairs appropriate funds in the amount of $43,250.00 from the General Fund (38/40) reserves to Account No. 7231- C5100333, Buck Gully /Little Corona Beach Outlet Modification. 9. AWARD OF CONTRACT FOR THE CITY COUNCIL CHAMBERS C -3161 STRUCTURAL ADA ALTERATIONS (C- 3161). Approve the plans and BA -081 specifications; award the contract to LTG Construction for the total bid price Council of $53,255.00 and authorize the Mayor and the City Clerk to execute the Chambers contract; authorize a $5,000.00 construction reserve amount for unforeseen • Structural work; and authorize a budget amendment (BA -081) to transfer funds in the ADA amount of $37,855.00 from Account No. 7161- C5100361 (Balboa Peninsula Alterations Improvement Program) to Account No. 7161- C5100416 (Council Chambers (38/40) ADA Project). 10. AWARD OF CONTRACT FOR THE PENINSULA PARK IRRIGATION C -3165 AND FIELD RENOVATION (C- 3165). Approve the plans and BA -078 specifications; award the contract to Golden Bear Arborists, Inc. for the total Peninsula price of $142,849.21 (Base Bid + Alternate Bid Items 15, 16, and 17) and Park Irrigation authorize the Mayor and City Clerk to execute the contract; establish an and Field amount of $11,000.00 to cover the cost of materials testing and additional Renovation work; and authorize a budget amendment (BA -078) to transfer funds in the (38/40) amount of $10,979.21 from Account No. 7013- C5100364 (River Avenue Reconstruction) to Account No. 7013- C3170373 (Peninsula Park). 11. AWARD OF CONTRACT FOR THE RIVER AVENUE STREET C -3178 RECONSTRUCTION (C- 3178). Approve the plans and specifications; River Ave. award the contract to R.J. Noble Company of Orange for the total amount of Street $174,625.00 and authorize the Mayor and City Clerk to execute the contract; Reconstruction and establish an amount of $17,462.00 to cover the cost of materials testing (38) and unforeseen work. 12. AWARD OF CONTRACT FOR BACKBAY DRIVE ROADWAY AND C -3180 • BRIDGE APPROACH REPAIR (C- 3180). Award the contract to Summit BA -082 Contracting of Duarte for the total bid price of $1.74,990.00 and authorize the Backbay Dr. Volume 52 - Page 73 City of Newport Beach City Council Minutes • June 22, 1998 Mayor and the City Clerk to execute the contract; establish an amount of INDEX Roadway $17,500.00 to cover the cost of materials testing and unforeseen work; and Bridge establish an amount of $9,000.00 to cover the cost of consultant construction Approach biological monitoring required by the U.S. Army Corps of Engineers (Corps) Repair and the U.S. Fish and Wildlife Service (USFWS) as part of the permit (38/40) conditions; authorize a budget amendment (BA -082) to transfer funds in the amount of $168,400.00 from Account No. 7013- C5100017 (Street, Alley, Bikeway Improvement) and $39,190.00 from Account No. 7013- C5100020 (Sidewalk, Curb, Gutter Replacement) to Account No. 7025- C5100427 (Backbay Drive Roadway). 13. AWARD OF CONTRACT FOR CITY -WIDE ADA CURB ACCESS C -3197 RAMPS (C- 3197). Approve the plans and specifications; award the contract BA -080 to West Coast Construction for the total bid price of $25,810.00 and City -wide authorize the Mayor and the City Clerk to execute the contract and establish ADA Curb an amount of $2,580.00 for construction testing and unforeseen work; and Access authorize a budget amendment (BA -080) to transfer $17,800.00 from Ramps Account No. 7013- C5100041 (Curb Access Ramp Construction) and (38/40) $10,590.00 from Account No. 7013- C5100020 (Sidewalk, Curb, Gutter Replacement) to Account No. 7013- C5200426 (City -wide ADA Curb Ramps). 14. AWARD OF CONTRACT FOR THE BALBOA ISLAND - PHASE 3 AND C -3205 BALBOA PENINSULA STREET LIGHT REPLACEMENT (C- 3205). Balboa Island - Approve the plans and specifications; award the contract to F.J. Johnson of Phase 3 Anaheim in the amount of $299,453.00 and authorize the Mayor and City • and Balboa Clerk to execute the contract on behalf of the City; and authorize a 10% Peninsula construction reserve of $29,900.00 for materials testing and unforeseen Street Light work. Replacement (38) 15. AWARD OF PROFESSIONAL SERVICES FOR THE BALBOA PIER C -3209 PARKING LOT AND PEDESTRIAN ACCESS (C- 3209). Authorize the Balboa Pier Mayor and the City Clerk to execute a Professional Services Agreement with Parking Lot Austin -Foust Associates Inc., for the preparation of a Parking and and Pedestrian Circulation Study of the Balboa Pier Parking Lot and Main Street/Central Access Balboa area. (38) 16. AWARD OF CONSTRUCTION CONTRACT FOR TRAFFIC SIGNAL C -3210 IMPROVEMENTS (C- 3210). Approve the plans and specifications; award BA -079 the contract to Signal Maintenance, Inc. for the total bid price of $103,195.00 Traffic Signal and authorize the Mayor and the City Clerk to execute the contract and Improvements establish an amount of $10,319.00 for unforeseen work; and authorize a (38/40) budget amendment (BA -079) to transfer funds in the amount of $51,722.50 from Account No. 7181- C5100068 (Traffic Signal Installation/Upgrade), and appropriate as follows: a) $49,789.00 to Account No. 71810- C5200425 (Traffic Signal Improvements); and b) $1,933.50 to Account No. 7181 - 05200408 (Traffic Signal Priority System). 17. AWARD OF CONTRACT FOR THE POLICE DEPARTMENT C -3217 BRIEFING AND LOCKER ROOMS REFURBISHMENT (C- 3217). Police Dept. . Approve the plans and specifications; award the bid to ASI for the total price Briefing and Volume 52 - Page 74 • • City of Newport Beach City Council Minutes June 22, 1998 of $197,505 and authorize the City Manager to execute a contract subject to the City Attorney's approval as to form; and fund the additional $26,910 required and attributed to unanticipated improvements in the women's locker room from FY 98 -99 Police Facility Maintenance Program, Account Number C1820037. 18. Removed from the Consent Calendar at the request of Council Member Hedges. 19. CONFERENCE AND VISITORS' BUREAU (CVB) AGREEMENT (C- 2638). Approve the contract amendment and extension with the Conference and Visitors' Bureau extending their agreement from August 31, 2001, to August 31, 2003. 20. LIDO GATEWAY PARK (C- 3155). Reject all bids and direct staff to review the scope of the project, find areas to reduce the cost, and re- advertise for bids. 21. VISTA DEL OROBACK BAY STORM DRAIN IMPROVEMENTS AT EASTBLUFF (C- 3200). Approve a Professional Services Agreement with John M. Tettemer & Associates of Costa Mesa, California, for professional engineering services for a contract price of $11,593.00. 22. Removed from the Consent Calendar at the request of Council Member Noyes. 23. BOYS AND GIRLS CLUB EASTBLUFF LEASE AGREEMENT (C- 1372). Approve the lease between the City and the Boys and Girls Club of the Harbor Area for the joint utilization of the facility at 2555 Vista Oro in Eastbluff Park, from July 1, 1998, through June 30, 2023. MISCELLANEOUS ACTIONS 24. PLANNING COMMISSION AGENDA FOR JUNE 18, 1998. Receive and file. Ayes: Thomson, Debay, O'Neil, Hedges, Noyes, Mayor Edwards Noes: None Abstain: Glover Absent: None 25. Removed from the Consent Calendar at the request of Council Member Noyes. 26. APPOINTMENTS TO THE CONSOLIDATED SANITATION DISTRICT OF ORANGE COUNTY ( CSDOC) BOARD OF DIRECTORS. Rescind the appointments of Council Members Debay and Noyes to the • County Sanitation Districts of Orange County Nos. 5, 6, and 7, effective June 30, 1998; appoint Council Member Debay as the City's representative Volume 52 - Page 75 `I 1 111 Locker Rooms Refurbishment (38) C -2638 Conference and Visitor's Bureau (38) C -3155 Lido Gateway Park (38) C -3200 Storm Drain Improvements (38) C -1372 Boys and Girls Club (38) Planning (68) CSDOC Board of Directors (54) City of Newport Beach City Council Minutes • June 22, 1998 to the Board of Directors of the Consolidated Sanitation District of Orange County, effective July 1, 1998; and appoint Council Member Noyes as the City's alternate on the Board of Directors of the Consolidated Sanitation District of Orange County, effective July 1, 1998. 27. Removed from the Consent Calendar at the request of Council Member Thomson. 28. CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT RENEWAL, ANNUAL REPORT FOR 1998 -1999 FISCAL YEAR, AND INTRODUCTION OF ORDINANCE TO MODIFY THE BASIS FOR LEVYING ASSESSMENTS. Approve Corona del Mar Business Improvement District Annual Report; adopt resolution of intention (Resolution No. 98 -47) and set the public hearing for July 13, 1998; and introduce Ordinance No. 98 -15 to modify the basis for levying assessments. 29. Removed from the Consent Calendar at the request of Council Member Glover. S35. Removed from the Consent Calendar at the request of Council Member Noyes. S36. CONFLICT OF INTEREST CODE. Adopt Council Policy A -16. • Motion by Mayor Pro Tern O'Neil to approve the Consent Calendar, except for the items removed (6, 7, 18, 22, 25, 27, 29, and 35). Without objection, the motion carried by acclamation. Council Member Glover abstained on Item 1 of Agenda Item 24. ITEMS REMOVED FROM THE CONSENT CALENDAR 6. RESOLUTION NO. 98 -45 AMENDING THE CITY'S FEE SCHEDULE CONSISTENT WITH NBMC CHAPTER 3.36 (Continued from the June 8, 1998, City Council meeting). Council Member Hedges reported that the City retained an accounting firm two years ago to determine true loaded costs (including administrative overhead) and how the City sets fees that fairly reflect costs and services. Motion by Council Member Hedges to adopt Resolution No. 98 -45, amending the fee schedule to reflect cost of service increases to only non - residents. In response to Mayor Edwards' question, Council Member Hedges stated that the 1997 -98 fees would establish the base year for the increase. Council Member Noyes expressed concern relative to City Council and Planning Commission appeal fees, stating that he does not think they should • be fully loaded since there are not that many appeals. He suggested holding the appeal fees to a later time and possibly taking them to a 50 percent raise. Volume 52 - Page 76 i QI17�1:1 Ord 98 -15 Res 98 -47 CdM BID (27) Conflict of Interest Code (69) Res 98 -45 City Fee Schedule (40) City of Newport Beach City Council Minutes June 22, 1998 • The maker of the motion agreed to including this in the main motion. In response to Council Member Debay's question, Council Member Hedges stated that the City will come out whole if only non - residents are charged the increase. Without objection, the motion to adopt Resolution No. 98 -45, amending the fee schedule to reflect cost of service increases to only non - residents; and holding City Council/Planning Commission appeal fees to a later time carried by acclamation. RESOLUTION NO. 98 -46 DECLARING INLINE SKATING AS A HAZARDOUS RECREATIONAL ACTIVITY. In response to Council Member Hedges' questions, Assistant City Attorney Clauson stated that there is nothing to prevent Council from declaring the entire City. a place where inline skating is a hazardous recreational activity. Ms. Clauson stated that Back Bay Drive, the Oceanfront sidewalk, and Seashore Drive were chosen because those were the areas inline skating is prevalent and posed the most problems. She stated that the legislation that allows the City to declare these areas requires that signage be posted in the areas the City is requesting immunity. She stated that signage regulations are not clear regarding where to post the signs; however, the legislation does • state that the locations need to be "adequately signed." Motion by Council Member Hedges to adopt Resolution No. 98 -46 and requested an opinion from the City Attorney relative to declaring inline skating as a hazardous recreational activity throughout the City. Council Member Glover questioned the location and appearance of the signs. She announced that she will not be supporting the motion because she would like to have a better handle on the appearance of the signs. Council Member Hedges suggested that the City have a single sign with all City rules. The motion carried by the following roll call vote Ayes: Thomson, Debay, O'Neil, Hedges, Noyes, Mayor Edwards Noes: Glover Absent: None Abstain: None 18. AWARD OF CONTRACT FOR THE UPPER FLOOR CARPETING OF POLICE BUILDING (C- 3215). Council Member Hedges took issue with paying $24 /yard for commercial grade carpeting, with an additional $10 /yard for installation. • Motion by Council Member Hedges to reject the bids and try to find a vendor who can install carpeting at a much lower price. Volume 52 - Page 77 INDEX Res 98 -46 Inline Skating (70) C -3215 Police Building Upper Floor Carpeting (38) • City of Newport Beach City Council Minutes June 22, 1998 Police Chief McDonell stated that, in addition to going out to bid, they checked with several neighboring agencies and found that the bids were in line with, and in some cases lower than, what other agencies have paid. He reported that about a year ago they received an estimate for $82,000 from a contractor for broad loom carpet. Chief McDonell explained that the Police Department is recommending carpet squares because installation is simpler around their large workstations that are electrically connected. He noted that there were more contractors at the bidders' conference but that the other vendors did not submit bids because they knew the low bidder was a carpet supplier. Substitute motion by Mayor Edwards to award the bid to Commercial Interior Resources for the total price of $62,247.00 and authorize the City Manager to execute the contract, subject to approval as to form by the City Attorney; and establish an amount of $2,753.00 as a contingency for any required change orders or unforeseen work during the course of the project. Council Member Hedges emphasized his concern with the base price of the carpet. Chief McDonell added that the cost also includes the removal and disposal of the old carpet. Council Member Hedges expressed the opinion that there will be no harm in rejecting the bids in order to save money. Council Member Noyes concurred. • The sub Ayes: Noes: Absent: Abstain atitute motion carried by the following roll call vote: Thomson, Debay, O'Neil, Glover, Mayor Edwards Hedges, Noyes None None Council Member Hedges requested a copy of the specifications. 22. AGREEMENT GUARANTEEING COMPLETION OF CORPORATE PLAZA STORM DRAIN (SITE PLAN REVIEW 74) (C- 3219). City Manager Murphy explained that Council routinely reviews and must approve agreements which guarantee completion of certain storm drains. Transportation and Development Services Manager Edmonston added that the agreement is a mechanism to protect the City by guaranteeing that the improvement is completed in a timely fashion. In response to Council questions, Mr. Murphy reported that The Irvine Company will be paying for the improvements. Mr. Edmonston stated that the developer has bonds worth 50 percent of the cost for labor and materials (material bond) and 50 percent for the construction (performance bond). Motion by Council Member Noyes to approve a site plan review agreement guaranteeing completion of the Corporate Plaza storm drain . required with Site Plan Review 74 and authorize the Mayor and the City Clerk to execute the agreement. Volume 52 - Page 78 1401) C -3219 Corporate Plaza Storm Drain (38/84) KS City of Newport Beach City Council Minutes June 22, 1998 • Without objection, the motion carried by acclamation. 25. GENERAL PLAN AMENDMENT 98 -2. In response to Council Member Noyes' question, City Manager Murphy stated that this matter will be coming back to Council. He added that tonight's item initiates amendments to the General Plan and gives staff direction as to how, or if, to proceed. Following the meeting, studies will be conducted, the item will go before the Planning Commission, and then come back to Council. Motion by Council Member Noyes to sustain the action of the Planning Commission to initiate the amendments; and direct staff to proceed with the preparation of any necessary environmental documents and set for public hearing before the Planning Commission. 27. INCOME PROPERTY DISPOSITION. Council Member Thomson requested that Council study this further and bring it back at a later time. He stated that, in his experience as a realtor, he has other ideas that the City could use for the properties. Motion by Council Member Thomson to create an ad hoc committee to • review this matter further and bring it back to Council in 30 -days. Council Member Glover agreed with continuing the item as this has been ongoing for some time and suggested that the Mayor put together a review team. Substitute motion by Council Member Hedges to direct staff to prepare 204 44th Street property for sale (via re- carpeting and re- painting rear unit), to list the property with a real estate agent, to return to City Council with a reasonable and viable offer, and to provide 60 -day notice to current tenants upon Council acceptance of any offer, if applicable; direct staff to reject offers for lot behind 205 and 207 34th Street from Ms. Spaulding and Mr. Reinhardt, to list property for sale with a real estate agent, and to offer Spaulding and Reinhardt Right of First Refusal should the City receive a viable offer on the City's property; and convert the property at 38th and Lake Triangle into park space, referring the disposition of the park to the Parks, Beaches and Recreation Commission. Mayor Pro Tem O'Neil suggested that the motion include a provision in which the City Manager meets and confers with Council Member Thomson. The maker of the motion concurred and proposed that the funding come out of Building Excise Tax moneys. Council Member Debay volunteered to participate in the ad hoc committee since the properties are in her District. She also requested information • relative to the cost and the amount that will be coming back to the City. She suggested reagendizing the item in two weeks. Volume 52 - Page 79 �w GPA 98 -2 (45) Income Property Disposition (73) City of Newport Beach City Council Minutes June 22, 1998 • Council Member Glover agreed that it would be worthwhile to upgrade the property if the properties are sold. However, she noted that City improvements may not be the type of improvements the buyer likes. City Manager Murphy stated that Council Member Thomson was consulted on that issue and that the City was advised by potential realtors that the condition in which the last tenants left the property was such that some remediation is needed to make the property marketable. Council Member Thomson expressed the opinion that the property on 44th Street is a nice, serviceable house even though an oil well erupted beneath it a few years ago (which will be disclosed). Regarding the 34th Street properties, he expressed the opinion that a First Right of Refusal is necessary as the property is big enough to put one small house on it and probably worth more than is being offered. He stated that Public Works is working with adjacent homeowners near 38th and Lake Triangle to trade some property and add sidewalks. He requested more input by creating a Council committee of Mayor Edwards, Council Member Debay, and himself. The substitute motion failed by the following roll call vote Ayes: O'Neil, Hedges, Glover Noes: Thomson, Debay, Noyes, Mayor Edwards Absent: None • Abstain: None The main motion to create an ad hoc committee consisting of Council Member Thomson, Council Member Debay, and Mayor Edwards to review this matter and bring back recommendations to Council in 30 -days carried by acclamation. 29. BUDGET AMENDMENT (BA -077) TRANSFERRING $27,353 FROM GENERAL FUND RESERVES TO FIRE OPERATIONS PROFESSIONAL AND TECHNICAL SERVICES ACCOUNT, FOR THE PURCHASE OF EQUIPMENT NECESSARY TO CONVERT METRO CITIES COMMUNICATIONS CENTER TO 800 MHZ. Council Member Glover expressed the opinion that the City loses control of the amount of money needed and how it is spent; once it becomes involved in these types of consortiums. City Manager Murphy clarified that the 800 MHz System and Metro Net are two separate entities. Further, that Metro Net is an agency that conducts the joint dispatch for 7 Orange County fire agencies at a cost of $80,000 less than what the City was spending with the former joint dispatching entitites (Huntington Beach, Fountain Valley, Westminster, and Newport Beach). In response to Council Member Glover's question relative to additional costs being incurred after the change over, Mr. Murphy indicated that this did not • happen with Metro Net. He clarified that all the cities are looking very carefully to reduce the costs involved with the 800 MHz System. He added Volume 52 - Page 80 BA -077 800 MHz System (41) TOT-03-0" • L J • City of Newport Beach City Council Minutes June 22, 1998 that, at the Board meeting, it was discussed that the long term integration of the 800 MHz System would make more sense rather than staying with the current system and dispatching equipment. Further, that he does not believe that additional costs will be incurred with the 800 MHz System. Assistant City Manager Wood concurred and added that all Board members were just as frustrated with the unexpected costs. Council Member Noyes pointed out that over the next four years the City would have budgeted $1,644,000 for the 800 MHz System and questioned if the system was worth doing. Mr. Murphy clarified that the $411,000 a year for 4 years is law enforcement money to integrate into the system. He stated that he could forward the previous report to Council that discusses this. He explained that the City initially has 16 channels throughout the County and that there are a number of overlaps without moving into the 800 MHz technology (64 channels). This system, which may be used for the next 25 years, requires the City to pay up front for installation. Motion by Mayor Edwards to continue this item for 30 -days and bring back the previous report dealing with this issue. In response to Council Member Debay's concern, Mr. Murphy indicated that, if there is a timeframe to order the equipment, the City would need to request that the other agencies hold a spot for the City. He emphasized that it is the County -wide program that is causing the problem and not Metro Net. Without objection, the motion carried by acclamation. 535. LEASE WITH LJR LIDO PARTNERSHIP L.P. FOR TIDELANDS ASSOCIATED WITH LIDO MARINA VILLAGE (C- 3216). City Manager Murphy reported that the City was approached several months ago by the buyers to purchase the Lido Marina Village property and inquired about the possible lease of the tidelands area in front of the uplands development. He stated that the City currently issues annual commercial pier permits at $.28 /sq. ft. City staff and property owners over the years have discussed the possibility of leasing the tidelands area to give the City and the upland owners greater security, higher income, and possibly higher property values and sales taxes. In this case, the buyers of the Lido Marina Village, LJR Lido Partnership, are in escrow to buy the uplands, emphasizing that the redevelopment of the uplands is an essential goal of the economic development program and for the revitalization of the peninsula. He reported that the tidelands area produces about 1/3 of the income of the entire Lido Marina Village property and is an integral part of the future income stream. Mr. Murphy pointed out that LJR Lido Partnership's lender, Lehman Brothers, indicated that LJR must secure a longer term than one year in the tidelands area to secure financing. LJR initially asked for a 50 -year lease to produce more income versus the annual permit method. Mr. Murphy Volume 52 - Page 81 INDEX C- 3216/Lido Marina Village Tidelands (38) • City of Newport Beach City Council Minutes June 22, 1998 II O11s1:1 indicated that the City has a similar lease with the Bahia Corinthian Yacht Club but, noting the goals of the area, recommended to Council something in line with the Balboa Bay Club. Mr. Murphy reported that LJR is required to first close the escrow, which has been extended several times, before they are in a position to lease the property. He stated that the buyer has noted that they cannot extend the escrow deadline beyond June 30 and that the proposed lease is only activated upon the purchase and ability to carry -out the redevelopment of the property. Assistant City Manager Wood reported that the lease agreement is similar to the Bahia Corinthian Yacht Club agreement and the performance schedule for future redevelopment of the upland property is similar to the Balboa Bay Club agreement. She stated that the rent issue (paragraph 5) was handled by having the buyers conduct a fair market valuation of the property. This resulted in the minimum rent being $35,000 per year and the additional rent of 9 percent of the gross receipts will be applied March 1, 1999. She noted that there are provisions for increases in the rent (minimum of 2 percent a year, with both portions being evaluated after 25- years). Ms. Wood stated that there are provisions regarding alterations to the tidelands and uplands; City approval to reduce slip amounts; and harbor permits. She noted that the City is requiring $2 million for comprehensive general liability, which is double of what the City usually requires. Ms. Wood stated that paragraph 17 discusses assignment and subletting of the property, noting that the • tidelands and uplands must be transferred together and the City has the right to consent to an assignment of the property. She stated that staff tried to follow Council Policy relative to income property in preparing the lease, pointing out the fair market rental value. The City is also authorized to audit the books to ensure it is receiving correct payments. Assistant City Attorney Clauson added that the insurance rating for the Bahia Corinthian Yacht Club lease was B +, when the City generally requires an A- rating or better. She stated that LJR is willing to change their rating to A -; that they already carry the $2 million insurance; that their insurance carrier has an A+ rating; and that the City can increase the insurance when the standard is to do so. Council Member Noyes expressed the opinion that the $2 million insurance is low relative to the amount of property involved. Ms. Clausen reiterated that the City generally requires a $1 million insurance on leases. Mr. Murphy added that, there are no requirements for insurance under the annual permits; however, they are required to indemnify the City. He indicated that the City will be revisiting this issue. Ms. Clauson indicated that City Policy requires general commercial comprehensive liability insurance. In response to Council Member Noyes' question, Mr. Murphy stated that LJR is required to provide evidence of financing (Lehman Brothers), meet with the community about the property and their interest, and provide a • concept plan (within two years) as part of the requirements for obtaining the lease. Failure of any of those requirements results in the termination of the Volume 52 - Page 82 • • City of Newport Beach City Council Minutes June 22, 1998 lease. He added that LJR cannot ask for an extension on any of the requirements. Council Member Debay stated that she met with Mr. Ratkovich and Ms. Wood last week and that the City was able to move quickly with this lease because of the leases already created with the Bahia Corinthian Yacht Club and the Balboa Bay Club. In response to Council Member Debay's questions, Ms. Wood stated that the lease takes affect at the recordation of the Grant Deed. Mr. Murphy stated that the agreement does provide for indemnification. Ms. Clausen confirmed that the City is also indemnified over the $2 million insurance amount. In response to Mayor Pro Tern O'Neil's concern relative to the various limited partners, Ms. Clauson stated that Council may wish to approve the lease subject to evidence of insurance and coverage for the lessee. Council Member Hedges stated that the major difference between this agreement and the Bahia Corinthian Yacht Club and the Balboa Bay Club is that the uplands property has numerous businesses adjacent to the tidelands. Ms. Wood confirmed that the uplands is not under one ownership and that there are also several ground leases. Ms. Temple added that, historically, this site has ended up with one permit with one owner and various master lessors. She also stated that there is one harbor permit for all the boats along the upland area. Ms. Temple explained that the escrow is to have one owner, with the exception of the adjoining properties. Council Member Hedges expressed the opinion that the tidelands property should not be separated from the uplands property and stated that he is unsure how the various entities relate to the property. He believed that reviewing a 50 -year lease over 72 -hours is tenuous and not the way to do business. Mr. Murphy indicated that, even in the Balboa Bay Club agreement, negotiations were conducted late; adding that time is sometimes an aide to staff in reaching certain conclusions. He stated that one of the key issues was getting an appraiser that everyone was comfortable with. Mr. Murphy apologized for the delay in bringing this to Council, but explained that negotiations were ongoing to about 1 p.m. Friday afternoon. He noted that the concept was brought before Council two weeks ago. In response to Mr. Murphy's question, Ms. Clausen stated that LJR Lido Parnters L.P. will be responsible if there is a default in the lease. She added that the City would also need proof that they own the property upon close of escrow. Mayor Edwards expressed the opinion that Council should conduct a special meeting before the June 30 deadline. Council Member Thomson expressed the opinion that the property is worth much more than $35,000 a year plus 9 percent of the override, and that Council needs to take more time to review the lease. Volume 52 - Page 83 Iool) :1 • C J • City of Newport Beach City Council Minutes June 22, 1998 Council Member Glover also suggested conducting a special meeting next week. Jim Ratkovich, applicant, stated that the City will be receiving $34,500 a year for the boat slips, which equates to 5.5 percent of the gross income; and under the new lease, the City will receive 9 percent of the gross income (68 percent increase). He explained that they are requesting a 50 -year lease because there were not many financial resources for developers who will put money into a difficult project and also to securitize the boat slips. He stated that his financial backers are a Wall Street resource and added that they needed to show them a long term income stream whose ultimate benefit will be used on the property. Mr. Ratkovich believed that the citizens will be the beneficiaries of the project since more money is being spent on the property and more sales tax is being generated. He indicated that he has spent several months working with the City and has shown the City their world - class urban design team they will be using. He pointed out that they are not asking for an entitlement guarantee and are aware of the thresholds set by the City. He expressed the opinion that nothing will probably happen with the property if they are not able to close escrow since it is a very difficult piece of property. Council Member Noyes stated that the problem lies with Council in that they are dealing with the public trust with property that is a big part of the Bay and that he wanted to ensure that the public is educated on the issue. In response to Council Member Glover's question, Mr. Ratkovich stated that the contract deadline is June 30 and has been under contract for over eight months. He noted that the City has had a draft of the lease for several months. Mr. Ratkovich stated that they have met with the community and will continue discussions to come up with a consensus plan. Mayor Pro Tom O'Neil stated that he met with Mr. Ratkovich and feels that he is a competent developer and felt confident in his financial backer. He is anxious to see something positive happen with the property and expressed the opinion that making these types of decisions in the time constraints is unfortunate. He stated that he would prefer to spend more time on the issue and come back at a special meeting. Noting Council's desire to spend more time on the issue, Marcia Dossev stated that lenders are willing to allow more time if they know there is an active transaction. She expressed the opinion that a 50 -year lease may be too long and will not best benefit the City. She also pointed out that the City does not have a redevelopment plan at this time. Ms. Dossey expressed concern relative to the parking issues in the area and the need to conduct a comprehensive parking plan. Mayor Pro Tem O'Neil clarified that the seller, not the lender, set the June 30 deadline. Jim Landis, 327 Fullerton Avenue, stated that he is the real estate agent for the seller and that his firm represents the buyer. He reported that they were hired 1.5 years ago by the owner to put together a professional sales Volume 52 - Page 84 INDEX E • 1- City of Newport Beach City Council Minutes June 22, 1998 package and to take the property out and market it on a worldwide basis. He expressed the opinion that "time kills real estate deals" and that he is unsure if LJR will be able to get an extension from the seller. He noted that it is unusual for a group to close escrow on a property like this without entitlement. Mr. Landis stated that this was the most challenging real estate deal he has been involved with because there are multiple ownerships with competing interests, and the property has gone downhill over the last 20 years. He likened the potential to the success of the Fashion Island Atrium Court Village since the property is currently ill- conceived; the tenants have repeatedly turned over; and there is insufficient parking. In response to Council Member Debay's question, Mr. Landis stated that he would need to defer to the buyer and seller to determine whether holding Council decision until June 29 would pose a problem. He expressed the opinion that this deal may "blow up" if the lease does not get approved. He noted that the buyer has already bought and closed escrow on the former Bank of America building on the corner of Via Lido and Central, and have also bought the Lido Building. He expressed the opinion that the group has the financial strength, commitment, long term standing power, and world class consultants, architectural firms, and brokers. In response to Council Member Noyes' concern relative to receiving the report in an untimely manner, Mr. Murphy stated that one of the problems was finding an appraiser who was qualified to appraise the property. Tony Shaw, 204 Tustin Avenue, stated that he is one of the owners at 336 Via Lido (upland property) and that they were not notified of the issue. He expressed concern that this issue extends past the buyers' lease on their docks and urged Council to give them time to talk to the owners. In response to Council Member Glover's questions, Mr. Shaw explained that he is one of the owners of the apartment building, not a condominium. He stated that the concern is that the City will be granting a 50 -year lease when they only have a 20 to 30 year lease. He stated that he is not sure that the owners want commercial development in front of their apartments. Council Member Glover took issue, stating that at a previous meeting Mr. Balalis stated that the owners understood that commercial development was going to take place and that no one contested the issue. Mr. Shaw clarified that he is not contesting commercial development being next to private development; however, he is contesting the 50 -year lease to a party who has not spoken with the lessors on the property. Ms. Clauson stated that it is identified on the lease as a differentiation between owned and leased slips. She clarified that the master lease on the leased slips expires in 2023. Once the lease expires, they are dropped from the lease and will not be extended. She noted that the speaker would be affected in that the owner of the master lease would change and not be the current property owner. Mayor Edwards added that he has been made to believe that Mr. Shaw's partners are well aware of the project as he has received numerous calls on the issue. Volume 52 - Page 85 INDEX • • City of Newport Beach City Council Minutes June 22, 1998 Council Member Glover also believed that there would not be a conflict with the project; that they were aware someone was looking into the properties; and that there were no problems, otherwise Council would not have agreed to continue developing the residential area as they have been doing. John Workman- Board Member of LICA, stated that the Association shares the same concerns as the City. He stated that Mr. Ratkovich met with them in October and that they are looking forward to a good project. He believed that very few people would want this project and that he hopes they will be included in any discussion. Jan Vandersloot, Steering Committee Member of SPON, stated that he did not hear about this issue until tonight. He believed that a 50 -year lease is unique and noted that the City spent several years to approve the Balboa Bay Club agreement. He expressed the opinion that the public needs more time to review the issue and requested that a public hearing with an analysis be conducted. He stated that he would also be more confident if a bank was backing the deal, rather than Wall Street money. Glen Sonnenberg, Partner, agreed that the deal is complex. He reported that, at some point a while ago, the property was divided into ground lease parcels and that very few of the ground lessors of the parcels are interested in the property now. He indicated that ownership will be concentrated into one entity for the real estate and /or the ground leases that control the property. He pointed out that the lease provides that, with respect to the properties that are not owned by the partnership, it can be terminated. Mr. Sonnenberg pointed out that Council is not being asked to approve a redevelopment without further review. He stated that the transaction requires conditional use permits, may require a general plan review, and many types of zoning and parking approvals. However, he emphasized the need to close on the property. Mr. Sonnenberg stated that he was unsure if the seller would grant an extension and expressed the opinion that they are the most appropriate people to be developing the property. He noted that a one year lease would not afford them the opportunity to receive financing since there will not be a steady income stream, and that the City would not get improvements to the dock /slips and to the upland properties this way. He stated that they fully expect to talk with the public and to come before Council on a number of different discretionary permits. Jack Jakosky, 1042 West Bay Avenue, stated that this deal will never reach its maximum potential unless there is a unifying entity that controls all the real estate. He expressed the opinion that the City should attempt to give LJR the 50 -year lease. He stated that people monitor terms of leases because they think there may be other uses for the property and added that this property will probably only be used as docks. He believed that Council's only issue should be whether they were satisfied with the economics over the 50 -year term. He stated that all the leases he has dealt with regarding shopping centers were over 50- years. He highly encouraged Council to bring this project to fruition. Volume 52 - Page 86 INDEX City of Newport Beach City Council Minutes June 22, 1998 • Gary Friedman, representing the sellers, stated that the sellers are a large manufacturing firm that got into the property about 10 years ago and have just stayed at status quo for the past 9 years. He indicated that they have been reluctant to do anything with the property because they are not developers. He reported that they put the property up for sale, but this group had Lehman Brothers behind them who even discussed the deal with them. He expressed his belief that LJR will develop the property properly. Mr. Friedman added that no one will loan money for this property without some type of lease and stated that he does not know what the problem is and why the City would not want someone of this magnitude and reputation to develop the property. He stated that he was impressed with staff for requiring LJR to submit plans otherwise their lease will be terminated. Council Member Hedges stated that most people speaking have a financial interest in the property. Further, that no one is saying that the uplands should not be developed. However, the issue is the 50 -year lease and the terms of the lease. He questioned if the City will receive proper return on the lease and noted that the appraisal was not included in the staff report. Mayor Edwards pointed out that the lease did come before Council two weeks ago and that staff could have been given additional input then. He added that this project is greater than what the City currently has and that they will need to close escrow for the City to have a chance for any possible • development. Mayor Edwards noted that this would allow the City to have control over the development and a chance to bring all the properties under one ownership versus the chance of potentially having nothing. He likened the problems with those of Mariner's Mile as this is an older part of the City and it deals with multiple parties that do not have an interest in having unified development. He emphasized that this project may create additional income and increase property values in the long term. He stated that the only questions that have not been answered are who are all the parties involved and do they have the financial viability to meet the indemnification provisions. He stated that all other questions have been answered. Motion by Council Member Hedges to continue this issue to June 24 at 5 P.M. Council Member Noyes stated that his goal in pulling the item was to make the public more aware of what is happening. He stated that continuing this for two days still does not give the public enough notice. Discussion ensued relative to possibly placing the adjourned meeting notice in The Doily Pilot. Council Member Glover recommended that Council receive a presentation that shows the configuration of the area and what properties LJR are looking at, which lots have land leases, and which lots they are able to purchase. She stated that it is important to know that some of the developers seeking funds sold land in the past. She stated that it was her understanding that the buildings and most of the land would be under one • ownership and emphasized the importance of understanding what the deal will entail and that LJR is purchasing the property without entitlement. Volume 52 - Page 87 IN l] s/:l City of Newport Beach City Council Minutes June 22, 1998 Without objection, the motion carried by acclamation. Paul Balalis stated that, at the time the owners came before Council requesting that the property be rezoned to residential, the owners made it clear that they did not oppose any commercial development that would take place adjacent to the property. He stated that they welcome Mr. Ratkovich and hope to work with them to possibly increase residential property in the area. He believed that Mr. Shaw was trying to explain that Mr. Ratkovich will have 25 years left on the lease for the boat slips in front of 3336 Via Lido. Mr. Balalis explained that he is the legal representative of the 3 Lido Partners and that they were not notified that the City was contemplating a 50 -year lease for the tidelands. He noted that their lease requires an approval of any change to the lessee. Further, that Mr. Ratkovich informed them that LJR will not be paying any of the additional taxes for any change to their property since it does not have any material affect on their use. He agreed that the appraisal report needs to be reviewed as it also affects his property. He expressed hope that the lease will be eventually approved and that Mr. Ratkovich will be successful. 33. 1998 -99 BUDGET ADOPTION AND CHECKLIST REVIEW. Motion by Council Member Hedges to take Item 8 (Landscaping for the Newport Elementary School adjacent to Balboa, 14th Street and 13 1h Street) • of Agenda Item 33 out of order. Without objection, the motion carried by acclamation. Council Member Hedges stated that he placed this item on the checklist at the request of several people in the community who have been working very hard to raise money to upgrade the landscaping. Motion by Council Member Hedges to allocate $25,000 from the General Fund to landscape the Newport Elementary School 13th and 14th Street area. Joseph Ray, Chairman of the Newport Elementary School Foundation, stated that this group was formed for the sole purpose of beautifying the school and that they received tremendous community and business support. He reported that the initial intent of raising funds was to beautify the exterior of the school, but be a vehicle to also raise more money to upgrade the interior, particularly the quad area. However, the funds (over $100,000) were reallocated since the condition of the quad was so deplorable. He added that the designs, surveying, and drainage work were done pro bono from members of the community. He stated that he would love to be able to tell the community that the City is behind the school's efforts as it would significantly help in their fundraising efforts. Janelle Arnold, 323 Montero, invited Council and the community to assist in beautifying Newport Elementary Grammar School. She stated that beautifying the school would give students a better learning environment. • She noted that there is a quality learning environment inside the classrooms and that it should be extended to outside the school. Ms. Arnold expressed Volume 52 - Page 88 INDEX 1998 -99 Budget (40) • • • City of Newport Beach City Council Minutes June 22, 1998 the opinion that the school deserves to be taken care of, respected, and enjoyed. She urged Council to help enhance the school's appearance for all to enjoy and take care of for many years to come. Evan Sinclair, 216 34th Street, believed that, as the former president of the school, the younger children deserve a pretty school. He expressed the opinion that there should also be landscaping for safety reasons. Josh White, 240 Lugonia, suggested placing benches at the proposed locations as this might deter parents from parking in the red zones. Russell Adnoff stated that the layout and blueprints for the proposed landscaping are a huge improvement to the current conditions. He believed that the landscaping would also benefit the visitors to the beach and assist in enhancing the learning process. He stated that it would be great if Council assisted with the funding efforts since the student council worked so hard to raise money. Don Wilson, 320 Montero, stated that he spent most of his life in the area and has seen many places deteriorate over the years. He expressed the opinion that the landscaping will fit nicely with peninsula upgrades. He emphasized the uniqueness and the draw Newport Elementary School is to visitors and requested that Council assist with taking care of the school. Jack Jakoskv stated that he attended Newport Elementary and that his children will be attending there at the beginning of the next school year. He expressed the opinion that it is imperative that the City participate in the efforts. He noted that people look at the quality of schools when they decide to purchase a house and stated that Newport Elementary is lagging in compelling reasons to attend. However, he believed that the Foundation is doing a lot to turn that around. Mr. Jakoski pointed out that the City named the school a historical site and that it may have some responsibility for it. Judy Franco, 202 Via Palermo, stated that this effort has brought the community together. She requested assistance in beautifying the school as it is unique since it is on the beach, is seen by all visitors to the beach, and is home to the students. Council Member Glover stated that the decision is difficult, noting that some of the schools in her District need upgrading also. In response to Council Member Noyes' question, Assistant City Manager Wood stated that CDBG funds may be used since the school is a historical site and it assists in the revitalization efforts of the area. City Manager Murphy pointed out that using CDBG funds will be taking away moneys for other designated projects. Council Member Glover requested that the issue of assisting Newport Harbor High School's pool improvements be placed on a future agenda. Volume 52 - Page 89 INDEX City of Newport Beach City Council Minutes June 22, 1998 • Without obiection, the motion PUBLIC COMMENTS No public comments were presented. PUBLIC HEARINGS 30. FOUR SEASONS HOTEL (THE IRVINE COMPANY, APPLICANT), AT 690 NEWPORT CENTER DRIVE, REQUEST TO ALLOW FOR A TOTAL MAXIMUM LIMIT OF 425 HOTEL ROOMS DESIGNATED IN BLOCK 600 OF NEWPORT CENTER, WHEREAS THE CURRENT LIMIT IS 325 HOTEL ROOMS; AND THE CONSTRUCTION OF AN ADDITIONAL 142,000 SQ. FT. (LOCATED ON AN EXISTING VACANT PARCEL THAT HAS LONG BEEN PLANNED FOR HOTEL EXPANSION PURPOSES) WHICH INCLUDES A 102 -ROOM, SIXTEEN STORY TOWER ADDITION WITH ADDITIONAL ANCILLARY USES - 690 NEWPORT CENTER DRIVE (GENERAL PLAN AMENDMENT 97 -3 (D), USE PERMIT NO. 3631, MODIFICATION NO. 4721, AND TRAFFIC STUDY NO. 1141. Planning Director Temple stated that the report is a planning amendment request by The Irvine Company to allow an extension of the Four Seasons - Hotel and that this was initiated by Council in late 1997. She indicated that staff prepared environmental documentation and traffic studies. Carol Hoffman, The Irvine Company; stated that The Irvine Company is pleased to bring a project of this quality to the City and noted that her team is in attendance tonight to answer questions. Mayor Edwards opened the public hearing. Don Gregory stated that there was a lot of debate at the EQAC meeting as to The Irvine Company's plans for the community. He requested getting The Irvine Company's master plan so that Council can vote intelligently on how their plans will impact future areas. Jan Vandersloot concurred with Mr. Gregory, noting that there is a master plan for the Newport Center. He believed that there is a CIOSA agreement between The Irvine Company and City agreeing to certain development entitlements for circulation and open space. He stated that The Irvine Company is now coming back and asking for an increased entitlement for an office tower to the Newport Center, specifically to the 800 block. Further, there have been talks about removing open space at the Newport Village site for housing. He believed that the City is increasing development and traffic, and decreasing open space, and suggested asking them to provide affordable senior housing. • Mayor Pro Tern O'Neil emphasized that he chairs a City ad hoc committee that deals with the future master plan development of the Newport Center. Volume 52 - Page 90 INDEX Res 98 -48 Four Seasons Hotel GPA 97 -3D UP 3631 (45188) City of Newport Beach City Council Minutes • June 22, 1998 He assured everyone that public forums will be conducted to review any traffic studies and modeling that will occur with the build -out. Regarding the General Plan Amendment, he stated that it was his understanding that it was not The Irvine Company's project. He agreed that Council needs to have a handle on the build -out of the Newport /Fashion Island Center as it is planned to be the major commercial and retail center for Newport Beach. He expressed the opinion that The Irvine Company is conscientiously putting together a plan that will be made public and reviewed by EQAC. Council Member Hedges noted that the Negative Declaration and analysis conducted under the existing Traffic Phasing Ordinance shows that there is virtually no impact or change to enter utilization or to the parking counts that are studied hourly. He clarified that this project has nothing to do with the CIOSA Agreement. Hearing no further testimony, Mayor Edwards closed the public hearing. Motion by Mayor Pro Tern O'Neil to adopt Resolution No. 98 -48 approving General Plan Amendment 97 -3(D); and sustain the action of the Planning Commission and approve the applications related to the General Plan Amendment, subject to the Findings, Mitigation Measures and Conditions as modified by the Planning Commission: The acceptance of a Negative Declaration, Use Permit No. 3631, Modification No. 4721, and • Traffic Study No. 114. Council Member Glover noted that the City has a general plan that lays out the capacity of the Newport Center. She stated that she would not like to, as a Council Member, make a determination as to the types of retail The Irvine Company determines is fitting. Without objection, the motion carried by acclamation. 31. J.P.'S OF NEWPORT BEACH (ERIK RAMESON, APPLICANT) REQUEST TO ALLOW THE RE- ESTABLISHMENT OF THE EXISTING WAREHOUSE RESTAURANT AS J.P.'S OF NEWPORT BEACH, A NEW FULL SERVICE RESTAURANT AND ENTERTAINMENT FACILITY AT 3450 VIA OPORTO (USE PERMIT NO. 3626). Mayor Edwards recalled that, at the June 8 meeting, there was a request that meetings be conducted to change parking operational characteristics. Assistant City Manager Wood reported that she and the Planning Director met with representatives of Via Lido Plaza on Friday and explained the conditions of approval that were added by the Planning Commission. She believed that the conditions offer an opportunity to improve the parking situation and added that a comprehensive parking study will need to be conducted for the entire area. Motion by Council Member Hedges to modify the action of the Planning • Commission to approve Use Permit No. 3626, amending the conditions to include the ingress and egress on Central, that a comprehensive parking Volume 52 - Page 91 J.P.'s of Newport Beach UP 3626 (88) INDEX • City of Newport Beach City Council Minutes June 22, 1998 study be conducted, and that the signage issues be clarified relative to free parking with validation. Mayor Edwards opened the public hearing. Jerry King. representing Erik Rameson, welcomed the additional signage and ingress /egress on Central. He stated that discussions will continue with the community irrespective of close of escrow. He confirmed that they have read, agree with, and will abide by the modifications. Phil Martin, Phil Martin and Associates, stated that he is speaking on behalf of the Lido Partners. He noted that it is appreciated that a clarification relative to free validated parking will be established and encouraged a parking analysis to be prepared for the Lido Marina Village as soon as possible. In response to Council Member Debay's questions, Mr. Martin stated that the Lido Partners includes the Pavilion and that they believed that the City would be preparing the traffic and parking study. He indicated that the Lido Partners will be willing to participate in the study if requested. Harriett Milgrom, Jacqueline's Boutique, urged Council to approve the request since the restaurant is an anchor for the area. She stated that • business has decreased, the parking structure is empty, and signs regarding free parking with validation are already present. Mayor Pro Tem O'Neil expressed. the opinion that Council believes that redevelopment of the property is essential for the vitality of the area. He stated that the restaurant should reopen and go forward. Hearing no further testimony, Mayor Edwards closed the public hearing. Without objection, the motion carried by acclamation. 32. COMPREHENSIVE UPDATE OF THE RECREATION AND OPEN SPACE ELEMENT (CITY OF NEWPORT BEACH, APPLICANT) WHICH IS A STATEMENT OF POLICIES SETTING FORTH OBJECTIVES, PRINCIPLES, STANDARDS, AND PLAN PROPOSALS FOR OPEN SPACE AND RECREATION FACILITIES IN THE CITY OF NEWPORT BEACH [GENERAL PLAN AMENDMENT 94- 2(E)]. Planning Director Temple stated that the Recreation and Open Space (R &OS) Element was prepared with the assistance of a consultant, Larry Lawrence. She stated that the R &OS Element was developed with intensive review by the Parks and Open Space Committee of the Parks, Beaches and Recreation Commission. The updated Element reflects open space additions, particularly the CIOSA parcels. Ms. Temple stated that the Element shows that the City is largely built out and, therefore, focuses more on maintenance . and utilization of existing resources and addresses the parkland needs in the new spheres of influence areas. She noted that issues addressed by both Volume 52 - Page 92 INDEX Res 98 -49 Recreation And Open Space Element GPA 94 -2(E) (45) • L • City of Newport Beach City Council Minutes June 22, 1998 commissions included a clarification of open space areas, such as Upper Newport Bay and Bonita Canyon. Ms. Temple stated that adoption of the Element also requires adoption of the Resolution. Council Member Hedges noted that Service Area No. 3 contains a disproportionate amount of park and open space compared to Service Area No. 2. Mayor Edwards believed that the beaches are included in Service Area No. 2. Ms. Temple clarified that not all beach area is included, just the area 100 feet from the water. In response to Council Member Debay's comment, Ms. Temple stated that getting CalTrans West to assist with the deficit in Service Area No. 1 is one of the City's goals. Mayor Edwards opened the public hearing. Jan Vandersloot requested adding the Newport Village Open Space site to the document and presented photos of the area. He stated that it is a 12 -acre site that contains all the elements of an environmentally sensitive area, noting the wildlife and vegetation in that area. He expressed concern that offering to develop senior housing on an open space site is a breach of the CIOSA agreement. He invited Council to walk the site and to a picnic that SPON is sponsoring on July 11. In response to Council Member Noyes' observation, Mr. Vandersloot noted that the map includes the Newport Village view park which The Irvine Company proposes to grade away to place housing on the site. In response to Mr. Vandersloot's concern, Ms. Temple stated that the Facilities' Plan (Page 4 -6) identifies Newport Village as a neighborhood park and that Service Area No. 9 map needs to be corrected to show the site larger. In response to City Manager Murphy's question, Ms. Temple stated that no additional modifications will be needed as the Boys and Girls Club is included as a public facilities portion of Eastbluff Park (technical appendix). In response to Council Member Glover's questions, Ms. Temple stated that senior housing is being proposed at Newport Village, noting that the existing site is shown in its existing zoning for open space and is identified as one of the dedication sites for parks and open space in the CIOSA Agreement. She explained that a General Plan Amendment will be required if the senior housing facility is approved on the site. She noted that no applications have been received to move that consideration forward. Hearing no further testimony, Mayor Edwards closed the public hearing. Motion by Mayor Pro Tom O'Neil to modify General Plan Amendment 94 -2(E) to include the Newport Village Open Space site and adopt Resolution No. 98 -49. Volume 52 - Page 93 INDEX • 1] • City of Newport Beach City Council Minutes June 22, 1998 Without objection, the motion carried by acclamation. CURRENT BUSINESS 33. 1998 -99 BUDGET ADOPTION AND CHECKLIST REVIEW. Motion by Council Member Hedees to continue this issue to June 24 at 5 P.M. The motion failed by the following roll call vote: Ayes: Hedges, Glover Noes: Thomson, Debay, O'Neil, Noyes, Mayor Edwards Absent: None Abstain: None Council Member Noyes stated that the City is spending a lot of money to bring visitors to the City and recommended upgrading the beach restrooms by increasing the budget to $50,000 without taking the money from another allotment source (Item 1). He suggested earmarking the first $50,000 over sales tax estimates toward beach restroom maintenance. City Manager Murphy noted that the first sales tax payment was received today and was under last year's amount. City Manager Murphy noted that there is $100,000 in the capital improvement project budget that is not specifically marked and stated that Council can request that those projects be prioritized to also include beach restroom maintenance. General Services Director Niederhaus stated that the three areas the capital improvement project budget would be used for are beach restroom maintenance, City yard improvements which have been deferred many years, and City Hall improvements. He realized that the public will benefit most from beach restroom maintenance, but invited Council to tour the City yard and City Hall to view some of the deferred maintenance. Following discussion, Mr. Murphy cautioned Council regarding using reserves and stated that he would like to find a way to maximize the dollars already in the budget. Council Member Hedges requested to amend the main motion to take the $20,000 for City Hall air conditioning and use the funds toward beach restroom maintenance. Motion by Council Member Noyes to prioritize the capital improvement projects to include beach restroom maintenance. Without objection, the motion carried by acclamation. Tom Hyans expressed the opinion that $9,500 for Police overtime is grossly inadequate (Item 2), noting that the problems exist because of actions Volume 52 - Page 94 INDEX Res 98 -50 98 -99 Budget (40) • City of Newport Beach City Council Minutes June 22, 1998 INDEX outside the restaurants. He recommended increasing the overtime amount and conducting patrols on random weekends throughout the year. Motion by Council Member Debav to allocate $9,500 for Police Department overtime for Cannery Village Restaurant patrol and revisit the issue if it is not working or if more overtime is needed. Without objection, the motion carried by acclamation. Council Member Noyes suggested earmarking the first $250,000 of the overage on the estimated sales tax amount for street light replacement (Item 3). Mr. Murphy indicated that the City has not done that before and expressed concern about what the City would do if the sales tax amount falls short later in the year. He pointed out that the moneys would fall into the reserves if the amount is reached toward the end. of the fiscal year and stated that Council can then reallocate the money at that time. Mr. Murphy expressed concern given the uncertainties of the VLF, the economy of the Asian market, and the sales tax i'alling below last year's level. He clarified that $750,000 is needed for capital improvement projects for 15 years. Mayor Edwards suggested leaving this item on a checklist and revisit it in the next 90 to 120 -days. Mr. Murphy added that the energy savings the City realized is not enough to finance the street light replacement. In response to Council Member Debay's question, Mr. Murphy indicated that • funding the lights on the Balboa Peninsula with CDBG money would still take away from the approved plans to revitalize the Peninsula. He stated that the trader oil spill money can be used for the Peninsula if the City receives it. Motion by Council Member Hedges to appropriate $500,000 a year for the Street Light Replacement project and direct the City Manager to return to Council in two weeks with a plan to cut the operating budget by $250,000. Mayor Pro Tem O'Neil noted the Reserve Policy, but questioned the appropriateness of using some of the reserves for infrastructure. Mr. Murphy reported that the General Fund Reseves are at the level Council determined and the Insurance Reserves have a cash value of $0. He stated that the City is looking at cutting the budget for the following fiscal year and indicated that the Merryl Lynch bankruptcy settlement may be received at the end of the year, but that possible restrictions may be placed on it. Substitute motion by Mayor Edwards to keep the Street Light Replacement project at $250,000 and direct the City Manager to bring back a proposal within 30 -days that deals with the problem. Council Member Hedges believed that Council will be presented with a list of untenable choices and suggested directing the City Manager to find the money in the least painful manner. Mr. Murphy stated that in the years in which the budget has been cut, he has brought budgets to Council that were • not easy. Mayor Edwards expressed concern relative to the fall out that may occur with the Far East situation. Council Member Noyes suggested cutting Volume 52 - Page 95 • City of Newport Beach City Council Minutes June 22, 1998 something as the City is in a crisis. In response to Council Member Glover's question, Mr. Murphy indicated that the energy savings is fairly significant but not enough to finance the project. He stated that the option of an assessment district was considered if the community decided this was a high enough priority to fund. However, it was concluded that taxpayers would not support the formation of an assessment district and spending $20 -$40 a year to accomplish the $250,000 a year for 15 years. Council Member Glover stated that maybe Council would want to totally dedicate itself to infrastructure. Council Member Hedges suggested directing the City Manager to cut the Operating Budget by two percent ($1.6 million) and stated that the City has not privatized any of its services. Council Member Noyes suggested directing the City Manager to prioritze the issues. Mr. Murphy indicated that he asked the departments to conceptually look at an across- the -board reduction (four percent) in the event that VLF money is taken. He stated that there is not $20 million of services the City can privatize but expressed a willingness to relook at the issue if directed. He pointed out that the largest cost funds capital improvements, then the next greatest cost is to fund employees. Substitute motion by Mayor Edwards to continue Item 33 (excluding • Items 1, 2, and 8) for 30 -days to enable the City Manager to prioritize the remainder of the checklist; and adopt Resolution No. 98.50 adopting the 1998 -99 City Budget. u Following discussion, without objection the motion carried by acclamation. 34. APPOINTMENTS TO BOARDS AND COMMISSIONS. Council appointed the following individuals to the Boards and Commissions: BOARD OF LIBRARY TRUSTEES Catherine Saar - Kranzley (4 -year term) Patrick Bartohc (term expires 6/30/99) CITY ARTS COMMISSION Roberta Jorgensen (4 -year term) Arlene Cartozian (term expires 6/30/00) CIVIL SERVICE BOARD Robert Foster (4 -year term) Volume 52 - Page 96 INDEX Boards and Commissions (24) City of Newport Beach City Council Minutes June 22, 1998 • PARKS. BEACHES AND RECREATION COMMISSION Marc Franklin (4 -year term) Thomas Tobin (4 -year term) Robin Sinclair (term expires 6/30/00) PLANNING COMMISSION Garold Adams (4 -year term) MOTION FOR RECONSIDERATION - None ADJOURNMENT - 11:29 p.m. to an Adjourned Regular Meeting on June 24, 1998, at 5 p.m. The agenda for the Regular Meeting was posted on June 18, 1998, at 9:15 a.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on June 22, 1998, at 1:00 p.rYL on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk • Recordin ec ary Mayor Volume 52 - Page 97 INDEX