HomeMy WebLinkAbout04/26/1999 - Study Session0 CITY OF NEWPORT BEACH
City Council Minutes
Study Session
April 26, 1999 - 4:00 p.m.
Present: Glover, Thomson (arrived at 4:15 p.m.), Debay, Ridgeway, Noyes,
Mayor O'Neil
Absent: Adams
CURRENT BUSINESS
1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR.
Regarding Item No. 14, McFadden Place Farmers Market Agreement,
Council Member Debay asked if the item needed to be pulled in order to
receive approval. Assistant City Manager Wood stated that the action is a
"yes" or `no" action and that the provisions are written into the agreement.
In response to Council Member Glover's questions regarding Item No. 8, R -A
District Height Limits (Amendment 887), and its impact on Kings Road,
• Ms. Wood clarified that the report only refers to the R -A District; that
Amendment 887 does not affect Kings Road; and that handwritten pages 6 to
10 were not supposed to be included in the report. She indicated that the
property is on Mesa Drive and that a variance application was submitted.
In response to Mayor O'Neil's question, City Attorney Burnham confirmed
that including handwritten pages 6 to 10 does rot change anything relative
to the notification.
In response to Council Member Glover's question relative to whether Item
No. 9, Service Station Regulations Update (Amendment 885), will be going to
public hearing, Acting City Manager Danner reported that staff will be
recommending that this item be continued for two weeks.
Council Member Glover expressed concern that all Newport Beach service
stations are becoming completely self serve stations. She believed that one
pump should be dedicated to full service, especially since there are many
elderly citizens in the City.
In response to Council Member Glover's question, Mr. Burnham stated that
her concern is not necessarily appropriate during clarification of items on the
consent calendar but that it is something that can be brought back. He
indicated that the City can only regulate as it relates to the zoning code.
2. UPDATE OF GENERAL PLAN HOUSING ELEMENT.
Assistant City Manager Wood explained that there was a delay in requiring
a Housing Element update because the State did not fund the Regional
Volume 52 - Page 438
1101] CAI
General Plan
Housing Element
(68)
City of Newport Beach
City Council Minutes
April 26, 1999
Housing Needs Assessment (RHNA) process. However, she indicated that
the deadline to have the Housing Element completed is now June 30, 2000
and that some of the State requirements are outlined in the staff report. She
reported that the significant issues for the City are The Irvine Company's
(TIC) requirement to provide affordable housing as part of the CIOSA
agreement and what the City intends to do with Ford's in lieu fees. She
stated that staff is looking for guidance on these issues, as well as direction
as to the types of housing programs the Housing Element should focus on.
Council Member Debay reported that this was last done 10 years ago. She
reviewed the previous process in which the Southern California Association
of Governments (SCAG) provided cities with growth forecast numbers and
stated that SCAG now receives these numbers from the cities themselves.
Council Member Debay also reported that the State has written legislation
permitting subregional coordinators, like the Orange County Council of
Governments (OCCOG), to administer these numbers.
In response to Council Member Glover's questions, Ms. Wood stated that the
Bayview Landing site was the site that TIC initially wanted to pursue for
senior affordable housing but that the City has not heard from them
regarding this for several months. Ms. Wood indicated that TIC does not
have a deadline; however, stated that staff believes that the plan would most
likely be accepted and certified by the State if a plan was included to address
both TIC's requirement and Ford's in lieu fees.
• Council Member Ridgeway expressed the opinion that the staff report
suggests that the City needs to provide a new Housing Element and provide
reporting, but does not put an affirmative obligation to provide affordable
housing. Ms. Wood reported that there is no State mandate that the City
must spend any of its own funds to produce affordable housing since the City
is already required to include SCAG's numbers as the City's affordable
housing goal and must provide a series of programs that addresses how the
City will facilitate the development. Ms. Wood stated that, if the City did
not have land to develop property on or the land was underutilized, the City
can utilize redevelopment methods.
Council Member Ridgeway reminded Council that the Newport Village site
was discussed at a previous study session and that it was concluded that TIC
would be able to meet their 172 affordable housing unit requirement at this
location.
Carol Hoffman, The Irvine Company, stated that, at the time the CIOSA
agreement was adopted, TIC was given a variety of locations to meet the
affordable housing requirements but that only two sites were suitable. She
noted that many members of the community told them that the Lower
Bayview Landing site was also not the best location for affordable housing.
Mayor O'Neil pointed out that TIC indicated to Council that they would
build an affordable housing project on Lower Bayview Landing.
• Mayor O'Neil asked if TIC has thought about dedicating the Lower Bayview
Landing site to the City just as they did with the Newport Village site.
Ms. Hoffman stated that they would be willing to meet in order to explore
Volume 52 - Page 439
INDEX
City of Newport Beach
City Council Minutes
April 26, 1999
• the many options and that this option has not been discussed with them.
Council Member Debay asked if TIC discussed extending the agreements
that are expiring or have expired. Ms. Hoffman stated that this would be
TIC's least preferred option on the apartment projects.
Council Member Noyes stated that the City made a good faith agreement
with TIC and released building permits for Corporate Plaza West. In return,
TIC almost guaranteed that they were going to move forward with the
affordable housing project at Lower Bayview Landing. He believed that the
site is only appropriate for affordable housing. Ms. Hoffman indicated that
TIC has felt there has been ambiguity from all parties relative to what is the
best way to meet the goal. Regarding Corporate Plaza, there are no direct
ties between commercial and affordable housing permits. Additionally, TIC
indicated that they would pull back from the Newport Village site affordable
housing project so there would be no further complications with regard to
Corporate Plaza. Ms. Hoffman stated that they would move forward if the
City wanted TIC to proceed on the Lower Bayview Landing site.
Mayor O'Neil recommended that staff meet with TIC regarding affordable
housing and review the following various concepts: 1) building on Lower
Bayview Landing; 2) dedicating the land; and 3) providing fees in lieu of
providing housing/land. He suggested bringing the information back at a
study session in 60 days and hoped that this will bring this issue to a
• conclusion.
Mayor Pro Tem Thomson asked if there is the possibility of acquiring new
land or using other TIC -owned land for the senior affordable housing project.
Ms. Hoffman stated that the only vacant parcels TIC has left are the Lower
Bayview Landing, Lower Castaways, and Avocado North (part of Newport
Village) sites. Mayor O'Neil noted that other opportunities may also be
opened if the City annexes the coast area.
Council Member Glover believed that the City may not be in a position to
have a report in 60 days and wondered about possibly converting the older
apartments in the City into affordable housing. She asked if the City can
talk to LINC to get them involved again.
Council Member Debay stated that the City spoke with Jim White who
indicated that he would be willing to redevelop the old trailer park site on
Pacific Coast Highway and a code - violated, motor residence on Placentia
using the Ford in lieu fees. She hoped that those two sites will be looked at.
Council Member Ridgeway pointed out that the staff report indicates that
rehabilitation of existing units does not count toward the RHNA
requirement. He believed that having staff bring back a report in 90 days
may still be accelerating something since the coast area will probably not be
annexed by that time. He indicated that he mentioned the Newport Village
site because individuals from the OASIS Senior Center made a strong case
• that it was a good site, especially since the location is close to all services,
public transportation, and medical facilities.
Volume 52 - Page 440
INDEX
City of Newport Beach
City Council Minutes
April 26, 1999
• Council Member Noyes stated that he has lost faith with the process. He
noted that the City reached an impasse to the point that the only way TIC
could get past the City was to agree to build on the Lower Bayview Landing
site, which they have yet to build on.
Mayor O'Neil stated that it is not in the City's best interest to try to push a
site that is controversial and that it may be better to accept title to the
Lower Bayview Landing site and /or accept an in lieu fee to move this along
and resolve it.
Council Member Ridgeway expressed the opinion that he would rather have
TIC oversee LINC, or a similar body, who could build a quality project in a
good area.
Noting that the City took $5,000 per unit from Ford, Council Member Debay
asked if a decent unit can even be built with that money. Council Member
Ridgeway clarified that the in lieu fee came from a fee being charged on the
total number of approved units; that it would cost'$60,000 to $70,000 per
unit, not including the land; and that Ford really had 61 units that would be
considered affordable units. Council Member Debay emphasized that, if the
City takes money from TIC, the City should receive a suitable amount that is
equal to the number of units.
Regarding rehabilitation of existing units, Ms. Wood confirmed that those
• units would not count toward the RHNA goal unless the units were
uninhabitable. However, doing this would still provide affordable housing;
extend the life of the City's affordable housing stock; improve the
neighborhood in which they are located; and satisfy other State laws and
parts of the Housing Element. She stated that Council may still want to
keep this option for consideration.
Following discussion, Mayor O'Neil clarified that The Irvine Company will
meet with staff to review the concepts of either building on the Lower
Bayview Landing site; dedicating the land; or paying in lieu fees. He stated
that everything can be considered, including the Newport Village site and
the Newport Coast annexation. He hoped that this can be brought back in
60 to 90 days. Ms. Wood stated that they will meet with TIC within the 60 to
90 day period and look at other options for the use of the Ford in lieu fees
and the possibility of TIC money.
In response to Council Member Glover's questions regarding TIC's building
permits, Mayor O'Neil reiterated that there were discussions during the time
that the committee was negotiating with TIC over whether or not a project
would be built on the Newport Village site. Those negotiations ended
because no one was able to agree on a suitable substitute site to replace the
property north of the library. Mayor O'Neil stated that, after that, there was
a need for TIC to pull building permits in connection with their Corporate
Plaza project. He indicated that Council instructed the City Manager to not
issue TIC building permits and that this was within their authority. He
• reported that commitments were made and correspondence was exchanged
between the City and TIC whereby, in exchange for issuing the building
permits for Corporate Plaza, there was a commitment on behalf of TIC to
Volume 52 - Page 441
INDEX
C J
•
•
City of Newport Beach
City Council Minutes
April 26, 1999
move forward and build an affordable housing project on Lower Bayview
Landing. He stated that it was Council's and TIC's understanding that this
was an agreement and that he is unsure why TIC did not move forward with
the project. Following Council Member Glover's request that the City Clerk
provide Council with the minutes concerning this, Mayor O'Neil stated that
he believed that this occurred during closed session. City Attorney Burnham
stated that he was confident that no open session took place regarding this.
Council Member Ridgeway commented that maybe TIC realized that Lower
Bayview Landing is not necessarily the best site for a senior affordable
housing unit and believed that the building permits were probably just
delayed rather than stopped.
Mayor O'Neil pointed out that TIC does have an obligation under the CIOSA
agreement to provide 172 affordable housing units. Further, that the City
needs to do something with the over $2 million in Ford in lieu fees to satisfy
the Housing Element. He agreed that the Newport Village site is the ideal
location to erect a senior affordable housing project but noted that Council is
not unanimous on the issue. Mayor O'Neil hoped that TIC and staff can get
together and then provide Council with several options.
Mayor Pro Tern Thomson stated that Ford gave the City $32,000 per unit,
not $5,000 per unit. If TIC were to do the same, the City can use that money
to possibly upgrade places throughout the City or build a low- income
apartment complex. Council Member Ridgeway emphasized that he would
just like to see a newer, nice senior affordable housing complex somewhere.
Council Member Noyes reiterated that it should be located in a good area in
which the seniors can walk or take transportation to services.
Newly -hired City Manager Bludau stated that he looks forward to meeting
with staff to explore the solutions. He agreed that cities have the
responsibility to provide low -cost housing but not necessarily to build it. He
suggested leveraging the $2 million and possibly waiving some of the
building permit fees to further contribute to the project. Mayor O'Neil noted
that the $2 million has also gained about $350,000 in interest over the past
three years.
3. WEST COAST HIGHWAY WIDENING - (TUSTIN AVENUE TO
RIVERSIDE AVENUE) PLAN REVIEW.
Public Works Director Webb noted that the staff report mentions some of the
current Traffic Phasing Ordinance numbers. He reported that a third
westbound lane and a turn lane on Coast Highway, and an additional right
turn lane out of Riverside Avenue would be required in order to meet the
ICU standards at build out. To accomplish this, Mr. Webb stated that
widening would be required on West Coast Highway between Tustin Avenue
and the westerly edge of the Sterling BMW dealership. He reported that
some right -of -way dedications and some building setbacks have been made
and that the City has not yet cleared the lane widths with CalTrans. He
estimated right -of -way acquisitions to be about $1.2 million and construction
to cost about $1 million. Mr. Webb reported that the City only owns six feet
of sidewalk between Riverside and Tustin Avenues, and the right -of -way in
Volume 52 - Page 442
l o001:�
West Coast
Highway
Widening
(74)
City of Newport Beach
City Council Minutes
April 26, 1999
• front of Sterling BMW, but does not own the right -of -way in front of the
China Palace. He indicated that the City has not actively pursued this
project and believed that the project could qualify for Measure M funds in
three to four years because it deals with traffic service and improvement.
However, if the City did not wish to pursue Measure M funding, he believed
that there are sufficient funds in the Circulation and Transportation Fund.
Council Member Debay questioned why the City would be paying for Pacific
Coast Highway's widening and improvements since it belongs to the State.
Mr. Webb pointed out that CalTrans only helped fund the storm drain
portion of the Arches interchange project and that the Pacific Coast Highway
widening from Bayside Drive to MacArthur Boulevard was also paid entirely
by the City (40% City funds /60% Federal funds). He added that CalTrans
does not have funding for the widening of conventional highways.
In response to Council Member Ridgeway's questions regarding funding and
the Arches bridge, Mr. Webb indicated that the program that issued FAU
funds does not exist anymore but that there are several different funds that
may be available for the City to apply for. He stated that the Arches bridge
should open in the next two weeks and that it is set up to handle build out
(60,000 to 65,000 cars a day).
Discussion ensued relative to the number of lanes there are on Coast
Highway. Council Member Ridgeway expressed the opinion that this is not a
• very wise use of funds since there is an immediate bottleneck area between
Tustin Avenue and the pelican wall. Mr. Webb stated that the General Plan
indicates that six lanes are needed at build out on West Coast Highway. He
also noted that the Public Works Department was directed not to bring the
project up until directed by Council.
Council Member Ridgeway asked if the City needed an updated EIR and
EIS. Mr. Webb believed that one of them needed to be updated and one was
only approved in 1981 for restriping within the existing right -of -way.
Council Member Glover believed that this project would cost more than the
estimated $2.2 million, recommending that the City purchase everything
from Villa Nova Restaurant to the Josh Slocums Restaurant, make a water
walkway, and install a median. She believed that the area would never
agree to the widening and reminded Council that many children cross the
Highway to get to the peninsula.
Motion by Council Member Ridgeway to take the steps necessary to
proceed with the widening of West Coast Highway from the Arches bridge to
Tustin Avenue.
Council Member Glover stated that she would second the motion if Council
Member Ridgeway included purchasing the properties from the Villa Nova
Restaurant to the Josh Slocums Restaurant in his motion. Council Member
Ridgeway stated that he cannot add that to his motion because he believed it
• would not be a wise use of City funds.
The motion died for lack of a second.
Volume 52 - Page 443
INDEX
E
City of Newport Beach
City Council Minutes
April 26, 1999
Noting that he does not have a point of view on this project, Phil
Bettencourt, 110 Newport Center Drive, reminded Council of the exempt
intersection list included in the Traffic Phasing Ordinance and pointed out
that this intersection is a potential candidate for the exemption.
In response to Council Member Debay's questions, Mr. Webb stated that
installing a left turn/straightway lane at Riverside Avenue and Coast
Highway is not an option because there is not enough space. Further, an
extra left turn lane is not an option because there is two -way traffic flowing
at the same time.
In response to Council Member Ridgeway's questions regarding the sidewalk
in front of the old Rosanne property, Mr. Webb explained that the sidewalk
was initially only six feet wide and did not have enough room for the school
children to ride their bikes and walk on the sidewalk. For safety reasons,
the sidewalk was widened to accommodate the sidewalk traffic. Further, the
John Dominus building could not just be setback, explaining that there is not
much room to widen the sidewalk there because the property already has
landscape setbacks, the building next to it has a very steep driveway, and
the building next to that is an apartment complex.
Without objection, the report was received and filed.
PUBLIC COMMENTS —None
• ADJOURNMENT — 5:22 p.m.
•
The agenda for the Study Session was posted on April 21, 1999, at 2:40 p.m.
on the City Hall Bulletin Board located outside of the City of Newport
Beach Administration Building.
- ;�rwslq/
Recording Secretary
R
r e�
Mayor
Volume 52 - Page 444
W1117�:�