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HomeMy WebLinkAbout11/23/1998 - Regular Meeting0 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting November 23, 1998 - 7:00 p.m. CLOSED SESSION - 6 p.m. CLOSED SESSION REPORT PRESENTED - Pursuant to Government Code Section 54957.1, the City Council accepted the single bid of $161,000 for the property known as 3404 Balboa Boulevard by a unanimous, 6.0, vote (Glover - absent). RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Thomson, Debay, O'Neil, Hedges, Noyes, Mayor Edwards Absent: Glover Pledge of Allegiance - Mayor Edwards. Invocation by Dr. James T. (Jim) Bradford, Newport -Mesa Christian Center. MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON - DISCUSSION ITEM): • Council Member Noyes requested that staff prepare an amendment to the Council's Harbor Permit Policy for the December 14 meeting that will allow Council to approve non - commercial piers when a waterfront property owner's access to the water is impacted by a Public Works project. • Mayor Pro Tern O'Neil requested a report regarding the creation of a conference area in City Hall for Council to hold meetings and make telephone calls with a budget under $10,000. • Mayor Edwards congratulated Council Member Debay on being elected Chairman of the Orange County Sanitation District. • Mayor Edwards congratulated re- elected Council members Dennis O'Neil and Norma Glover; and newly - elected Council members Gary Adams and Tod Ridgeway. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE REGULAR MEETING OT' NOVEMBER 9, 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. Volume 52 - Page 219 INDEX City of Newport Beach City Council Minutes November 23, 1998 INDEX • RESOLUTIONS FOR ADOPTION 3. RESOLUTION LIMITING THE PARKING OF VEHICLES ON Ord 98 -25 CERTAIN STREETS AND ORDINANCE REVISING PREFERENTIAL Res 98 -73 PARKING ZONE 2 (NEWPORT HEIGHTS AND CLIFF HAVEN). Adopt Residential Parking Resolution No. 98 -73 limiting the parking of vehicles on certain streets and Permit Program/ rescinding Resolution No. 98 -29; and introduce Ordinance No. 98 -25 Newport Heights & amending Section 12.68.060 of the Newport Beach Municipal Code to Cliff Haven establish a residential parking permit program for portions of Newport (85) Heights and Cliff Haven, and pass to second reading on December 14, 1998. 4. EMERGENCY MANAGEMENT ASSISTANCE (EMA) GRANT Res 98 -74 PROGRAM AUTHORIZATION. Adopt Resolution No. 98 -74 designating EMA Grant the City Manager as the City's Authorized Official and the Fire and Marine Program Chief as the Alternate Authorized Official responsible for executing (41) applications and documents for the purpose of obtaining financial assistance through the Emergency Management Assistance Grant Program. 5. MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT ( BALBOA Res 98 -75 ISLAND BAYSIDE BUSINESS IMPROVEMENT DISTRICT) Marine Ave. RENEWAL AND EXPANSION, ANNUAL REPORT FOR 1998. Approve BID Marine Avenue Business Improvement District 1998 Annual Report; and (27) adopt Resolution of Intention No. 98 -75 and set the public hearing for December 14, 1998. Ayes: Thomson, Debay, O'Neil, Hedges, Mayor Edwards Noes: None Absent: Glover Abstain: Noyes 6. NEWPORT BEACH RESTAURANT IMPROVEMENT DISTRICT 1998 Res 98 -76 ANNUAL REPORT AND DISTRICT RENEWAL. Approve Newport Newport Beach Beach Restaurant Improvement District 1998 Annual Report; and adopt Restaurant BID Resolution of Intention No. 98 -76 and set the public hearing for December 14, (27) 1998. CONTRACTS AND AGREEMENTS 7. UNDERGROUND UTILITIES IN BAY SHORES (PROPOSED C -3246 UNDERGROUND ASSESSMENT DISTRICT NO. 70). Authorize a BA -021 budget amendment (BA -021) to appropriate $67,695 from the General Fund Underground to the Assessment District Fund, Assessment District No. 70 — Bay Shores, Assessment Account No. 7401- C5200483; and authorize the City Manager to execute a District 70 — Professional Services Agreement with GFB Friedrich & Associates in an Bay Shores amount not to exceed $24,695 for assessment engineering services. (38/40/89) 8. UNDERGROUND UTILITIES IN BALBOA BOULEVARD BETWEEN Underground "A" STREET AND "H" STREET (PROPOSED UNDERGROUND Assessment ASSESSMENT DISTRICT NO. 71). In order to expedite the conversion: District 71- • authorize the Public Works Department to complete any service connections that are not completed by January 1, 1999, bill the affected property owners Balboa Boulevard (89) for the work, and place liens on the properties until the connection fees are paid; and authorize the Public Works Department to hire a licensed contractor to complete the underground service connections for those Volume 52 - Page 220 City of Newport Beach City Council Minutes November 23, 1998 INDEX properties that have not completed their service connections by January 1, 1999. 9. UNDERGROUND UTILITIES IN RIVER AVENUE FROM CHANNEL C -3247 PLACE TO 38TH STREET INCLUDING CHANNEL PLACE BA -022 (PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 81). Underground Authorize a budget amendment (BA -022) to appropriate $47,775 from the Assessment General Fund to the Assessment District Fund, Assessment District No. 81 - District 81- River Avenue, Account No. 7401- C5200484; and authorize the City Manager River Avenue to execute a Professional Services Agreement with GFB Friedrich & (38/40/89) Associates in an amount not to exceed $16,775 for assessment engineering services. 10. BALBOA ISLAND BAYFRONT REPAIRS - AWARD OF CONTRACT C -3166 (0- 3166). Approve the plans and specifications; award contract to Surfside Balboa Island Restoration for the total bid price of $45,392.90, and authorize the Mayor and Bayfront the City Clerk to execute the contract; and establish an amount of $4,500 to Repairs cover the cost of unforeseen work. (38) 11. USE PERMIT NO. 3612 - 3100 WEST COAST HIGHWAY (T.L.A., INC.) UP 3612/ Approve the improvement plans and specifications and accept the public 3100 West improvements constructed in conjunction with Use Permit No. 3612; Coast Highway authorize the City Clerk to release the faithful performance bond (Certificate (88) of Deposit No. 2084 7800); and authorize the City Clerk to release the labor and material bond (Certificate of Deposit No. 2084 7800) in six months, • provided no claims have been filed. 12. PROFESSIONAL SERVICES AGREEMENT FOR JAMBOREE ROAD C -3242 REHABILITATION FROM EAST COAST HIGHWAY TO SAN Jamboree Rd. JOAQUIN HILLS ROAD (C- 3242). Approve a professional services Rehab. agreement with Berryman & Henigar of Santa Ana for professional (38) engineering services for a contract price of $37,134. 13. MEMORANDUM OF UNDERSTANDING (MOU) - NEWPORT BEACH C -2065 CITY EMPLOYEES LEAGUE. Approve the MOU between the City and Employees the City Employees League for the period July 1, 1998 to June 30, 2001. League MOU (38) MISCELLANEOUS ACTIONS 14. PLANNING COMMISSION AGENDA FOR NOVEMBER 19, 1998. Planning Receive and file. (68) 15. BUDGET AMENDMENT (BA -024) - DONATION FOR CLIFF DRIVE BA -024 PARK LANDSCAPING. Approve budget amendment (BA -024) in the Cliff Dr. Park amount of $5,103 to fund the planting of flowering trees and shrubs at Cliff Landscaping Drive Park. (40/62) 16. BUDGET AMENDMENT (BA -023) - TENNIS RESERVE FUND BA -023 BUDGET TRANSFER. Approve the transfer of $27,000 from Account Tennis • No. 010 -3742, Tennis Reserve Fund, and appropriate to Account No. 4330 - 8080, Fee Based Classes - Professional/Technical NOC to appropriate tennis Reserve Fund reserves for court resurfacing, bench replacement and purchase of tennis (40/62) equipment, replacement nets and windscreens. Volume 52 - Page 221 City of Newport Beach City Council Minutes November 23, 1998 • 17. APPOINTMENTS TO THE ECONOMIC DEVELOPMENT COMMITTEE (EDC). Appoint Lisa Reedy as the Newport Center/Fashion Island representative; and designate Gary DiSano as the Cannery Village Representative and Michael Porter as the At -Large Representative. 18. COSTA MESA FREEWAY LITTER REMOVAL (Requested by Council Member Glover). Receive and file. 19. AMENDMENT TO CIVIL SERVICE RULES. Approve suggested language for Civil Service Rules 501.2.3.1.c.2 and 501.2.3.1.d.2, allowing for the extension of promotional and open employment lists for an additional year. Motion by Mavor Pro Tern O'Neil to approve the Consent Calendar. Without objection, the motion carried by acclamation. Council Member Noyes abstained on Item 5. PUBLIC COMMENT • Allan Beek, 2007 Highland, stated that the City entered into a CIOSA agreement with The Irvine Company in which they offered to dedicate a large parcel near Fashion Island as permanent open space. Mr. Beek stated that the City failed to accept The Irvine Company's offer of dedication on November 19, 1996, and requested to have the offer of dedication placed on the agenda. • PUBLIC HEARING 20. AN AMENDMENT TO DISTRICTING MAP NO. 1 TO CHANGE ZONING DISTRICT CLASSIFICATION OF 511 CANAL STREET (NEWPORT SHORES COMMUNITY CLUBHOUSE) FROM OPEN SPACE PASSIVE (OS-P) TO OPEN SPACE ACTIVE (OS-A) [AMENDMENT NO. 881). Mayor Edwards opened the public hearing. There being no testimony, Mayor Edwards closed the public hearing. Motion by Council Member Debay to introduce Ordinance No. 98 -26 for Amendment 881, and pass to second reading on December 14, 1998. Without objection, the motion carried by acclamation. 21. IMPROVED IDENTIFICATION AND PROMOTION OF HISTORIC ASSETS ON THE BALBOA PENINSULA. Motion by Council Member Hedges to become more proactive in the designation of historic properties by directing staff to encourage owners of • historic properties to have their properties designated and directing staff to amend City Council Policy K -2 to provide for City initiation of the designation process; instruct staff to retain professional design assistance to develop historic plaques; approve the purchase, use, and maintenance of historic plaques to identify City designated historic buildings and sites; and Volume 52 - Page 222 INDEX (24) Fwy Litter Removal (74) Civil Service Rules (66) Ord 98 -26 Amendment 881 511 Canal St./ Newport Shores Community Clubhouse (94) Identification and Promotion of Historic Assets on Balboa Peninsula (35) City of Newport Beach City Council Minutes November 23, 1995 instruct staff to work with local historic preservation groups to expand and promote walking tours of the Balboa Peninsula sites. Without objection, the motion carried by acclamation. 22. CORONA DEL MAR TIDEPOOLS. Nancy Gardner, 323 Jasmine, member of the Surfrider Foundation, suggested that the City create a resolution or make a motion to close the tidepool area to send a message that there is a problem that needs a solution. She expressed the opinion that no science will take place without closure and that recommending closure only starts a procedure. She indicated that baseline studies will take about a year to complete. Ms. Gardner believed that, if there is no closure, there could be very controlled, grant funded studies. However, if closure is done correctly, she expressed the opinion that there will still be full access to the sand, water, and recreational areas of Little Corona; other parts of the tidepools can still remain open; and the educational needs can still be handled. She commented that it is time the City managed its marine parks. Mayor Pro Tem O'Neil stated that he was more inclined to follow the recommendation which allows the studies to proceed. Deputy Chief Melum concurred, stating that Professor Kelly and Dr. Murray believed that this • recommendation would be appropriate at this time since the preliminary studies suggest that there has been some loss of species and probably degradation of habitat. He stated that, even though their studies suggest that it is due to human intervention and high visitor use, El Nino, urban runoff, and water temperature might also be factors to the problem. He stated that they are reluctant to proceed with recommendations 3 and 4 until they have spent some time studying the area. In response to Mayor Pro Tem O'Neil's question, Mr. Melum stated that they were not aware that there was this type of damage to the tidepools and that the main reason for the Marine Preserve Officers was to control the school groups. He reported that the Marine Life Refuse Code does not discuss denial of access just educational purposes, and believed that this may need to be expanded. He indicated that the money was focused for spring time, and that there was no budget and no need to staff low tides during the off season and fall. He also pointed out that the preliminary studies indicate that additional damage is being done by sport fisherman, beach users, and hobbyists that may need supervision. Council Member Debay suggested looking into getting grant funds and requested finding out more information. Mayor Pro Tem O'Neil noted that the Corona del Mar tidepool area is one of only three State - designated marine life refuges. He stated that this is a very • sensitive ecosystem that warrants the City's protection. Motion by Mayor Pro Tem O'Neil to establish a panel of experts to assess the current condition of the ecosystem at Little Corona del Mar rocky intertidal via additional scientific research (the panel would recommend Volume 52 - Page 223 INDEX Corona del Mar Tidepools (51) City of Newport Beach City Council Minutes November 23, 1998 • action to the City based on their findings in 90 (lays); and investigate possible use of grant funds. In response to Council Member Hedges' statement, Mayor Pro Tern O'Neil believed that the tidepools are in jeopardy from overuse and from individuals taking specimens from them. He recommended that staff come back to Council with a recommendation for the panel of experts, then Council will decide who the panel will be, when they should meet, and their duties. He stated that a study session will be a good time to discuss this. Council Member Hedges suggested getting a recommendation from EQAC. Mayor Pro Tem O'Neil concurred, stating that Council should get this issue off the ground and then refer the intermediate or final findings to EQAC and the Harbor Quality Citizens Advisory Committee. He also suggested requesting assistance from the Kerckhoff Marine Lab. He concurred with Council Member Hedges that Council does need to give the issue direction and have control so that the City does not deny public access without having solid justification. Without objection, the motion carried by acclamation. 23. REPORT FROM THE PROP COMMITTEE (AD HOC COMMITTEE TO PROMOTE THE REVITALIZATION OF THE BALBOA PENINSULA) RECOMMENDING APPROVAL OF A LEASE OF THE BALBOA THEATER TO THE BALBOA THEATER ARTS FOUNDATION. • Council Member Hedges reported that Council made the step to oversee the purchase of the Balboa Theater using CDBG funds designated for economic development. He stated that the Balboa Theater Arts Foundation has been involved with the Theater for a number of years and have been successful in raising money to renovate the building. City Attorney Burnham summarized the 25 -year lease, stating that, even though no rent will be paid, the Foundation is required to make substantial improvements to the property before operating as a theater, operate a first class community theater, and offer a minimum number of annual performances. Further, there are property use restrictions and insurance requirements the Foundation must follow. Council Member Thomson recommended amending the lease to have the option to purchase (Page 4, Section 4.3) begin at month 25 to month 74; that the option be determined by taking the $480,000 and having it compounded annually with the CPI; and, after five years, the Foundation has a first right of refusal (Page 5, Section 4.5) at the market price. He expressed concern relative to the Repairs and Maintenance provisions (Page 13, Article 10), believing that the Foundation can terminate the lease if the cost of repairing and replacing any of the structural roof is more than they initially thought. Regarding the Executive Board and Advisory Board (Page 14), he suggested that the Mayor appoint a Council member to the Board so that they would • have access to Council. Council Member Debay indicated that the Foundation will allow Council to attend the meetings but will not be a voting member of the Board. Regarding Council Member Thomson's suggestions, Mr. Burnham clarified Volume 52 - Page 224 INDEX C -3248 Balboa Theater Lease (38) City of Newport Beach City Council Minutes November 23, 1998 INDEX that the option to purchase does not occur until the Foundation has operated \ the Theater successfully for 5 years. He stated that Council Member Thomson's comment regarding the cumulative percentage increase is a better term since it is an annualized compound of the percentage increase and more accurately reflects increases in the CPI. He clarified that the right of first refusal was discussed at the option price; however, he is unsure that the City is in the position of getting offers to buy the property since no rental income is received. In response to Council questions, Mr. Burnham confirmed that the lease will survive a change in ownership; that the City reserves the right to assign its interest in the lease to a non - profit corporation; and that the lease allows the Foundation to assign the leasehold interest only with Council approval. Regarding the use of CDBG funds, Assistant City Manger Wood stated that, if someone wanted to purchase the Theater from the City, there would be no constraint for the new property owner; however, the income that the City would receive will be treated as original Block Grant dollars that can only be used for CDBG eligible projects. In response to Council Member Debay's concerns, Mr. Burnham believed that the Foundation is not concerned with the City selling the property since there is no income derived from the lease, and therefore, may not have a substantial market value. Additionally, the use cannot be changed once the 25 -year lease is signed. • In response to Mayor Pro Tem O'Neil's question regarding default, Mr. Burnham stated that the City could take the property back if the Foundation fails to make the necessary improvements; fails to have the minimum number of performances; fails to pay any fees, assessments, taxes, or charges on the property; fails to maintain insurance; or fails to live up to any of the obligations in the lease. Regarding Council Member Thomson's suggestion to have the option to purchase begin at month 25 to month 74, Mr. Burnham clarified that the Foundation does not have an option to purchase until they have satisfactorily performed for 5 years after they complete the initial improvements. He clarified that there is no time restriction on the right of first refusal. Steve Bromberg, Foundation member and Counsel, stated that the Foundation carefully negotiated the lease and requested Council approval. He stated that it is their understanding that the lease begins tonight, not in 2 or 5 years, as this may hamper their fund raising efforts and pointed out that the Foundation will be putting over $700,000 into the property. Regarding City representation on the Board, Mr. Bromberg indicated they have no problem with anyone attending the meetings; however, by law, the City is prohibited from having a voting member on the Board. He reported that they just found out that the Theater also needs a new roof and that this will be their responsibility. He expressed the opinion that the lease is fair and good, and the Foundation and the PROP Committee are hippy with it. • In response to Council Member Hedges' question regarding the percentage increase through the option price as tied to the CPI, Mr. Bromberg indicated that this is a cumulative CPI, as illustrated in the lease. Volume 52 - Page 225 \• E City of Newport Beach City Council Minutes November 2a, 199s In response to Mayor Edwards' question, Mr. Burnham confirmed that memorandum will be prepared for recording. Council Member Hedges commended the Foundation for putting this project together and noted that many of the members are not residents of the Peninsula. He agreed that it is a huge undertaking and believed that the City should give them every opportunity to make it a success. Although Council,Member Thomson's comments are well taken, he does not feel they are significant enough to cause the City to amend the lease. Motion by Council Member Hedges to approve the lease with the Balboa Theater Arts Foundation. Without objection, the motion carried by acclamation. Mr. Bromberg, Foundation President Dayna Pettit, and other members of the Foundation presented the City with a Steve Simon print of the Balboa Theater to thank the City for its leap of faith. 24. UNSCHEDULED VACANCIES ON THE PLANNING COMMISSION Motion by Mayor Edwards to declare two vacancies on the Planning Commission due to the election of Planning Commissioners to the City Council in both Districts 1 and 4; appoint Mayor Pro Tem O'Neil, Council Member Thomson, and Council Member Debay to the Ad -Hoc Appointments Committee; and direct the City Clerk to post and publish a Special Vacancy Notice requesting that applications be submitted by 4:00 p.m. on Thursday, December 17, 1998, and scheduled the submission of the nominations to the City Council on January 11, 1999 with the final appointment to be made on January 25, 1999. Without objection, the motion carried by acclamationa. None ADJOURNMENT — at 7:55 p.m. to Monday, November 30, 1998, at 5 p.m. to declare the results of the General Municipal Election, swear -in the newly - elected Council members, and elect a Mayor and Mayor Pro Tem. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** The agenda for the Regular 2 :30 p.m. on the City Hall Newport Meeting was posted on November Bulletin Board located outside of Building. if /. domes City Clerk 18, 1998, at the City of Volume 52 - Page 226 INDEX Planning Commission Vacancy (24)