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HomeMy WebLinkAbout09/13/1999 - Regular Meeting• CITY OF NEWPORT BEACH City Council Minutes Regular Meeting September 13, 1999 - 7:00 p.m. CLOSED SESSION - 6:00 p.m CLOSED SESSION REPORT PRESENTED - None. RECESSED AND RECONVENED AT 7 :00 P.M. FOR REGULAR MEETING ROLL CALL Present: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Absent: None Pledge of Allegiance - Council Member Adams. Invocation by Greg Kelley, President of the Newport Mesa Irvine Inter - Faith Council. Presentation of $125,000 check from the Friends of the Library. • Presentation to Lifeguard Buddy G. Belshe for his 50 years of continued presence and guidance in the field of Marine Safety in Orange County and Newport Beach. Presentation by the American Red Cross to the Newport Beach Lifeguards, the City of Newport Beach and Marine Safety Lieutenant Jim Turner for the blood donated to the American Red Cross this year and in past years. Presentation of a proclamation honoring the Okazaki - Newport Beach relationship to the delegation from the Okazaki South Rotary Club. MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON - DISCUSSION ITEM): • Council Member Debay reported that the October 11 Council meeting has been cancelled due to the League of California Cities conference that will be held in San Jose. Mayor O'Neil announced that Council Member Debay will be sworn in at the conference as the new Orange County Division President of the League of California Cities. • Council Member Adams requested that a revision be made to Council Policy A -2 (Boards and Commission Appointments), particularly regarding the provision in which individuals can only serve on one standing City commission or committee. He believed that exceptions need to be made for those individuals that serve on a second committee because they are a member of another committee, i.e. a Planning Commissioner may be seated on the Economic Development Committee as the representative from the Planning Commission. Volume 52 - Page 685 INDEX 0 • • City of Newport Beach City Council Minutes September 13, 1999 Council Member Adams announced his intent to continue Agenda Item 21 (30 mile per hour speed limit on Santiago Drive) to a future meeting so that there could be continued discussions with the affected residents. He stated that a community meeting may occur and requested that staff create an action plan for addressing the speed problems on Santiago Drive. Council Member Ridgeway indicated that the City Manager received correspondence that requested Council to look at the dredging equipment out in the Bay. He stated that the Harbor Committee addressed this and requested that a meeting be conducted with the City Manager, Assistant City Manager, a County representative, and the Fish and Game Department. He believed that the City needs an industrial area and that the Shellmaker Island would be an appropriate area for dredging equipment, dock construction equipment, and trash removal from the Bay. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE REGULAR MEETING OF AUGUST 23, 1999. 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 ADOPTION 3. ORDINANCE ADDING CHAPTER 13.20 TO THE NBMC PERTAINING TO OBSTRUCTIONS ON PUBLIC PROPERTY. Adopt Ordinance No. 99.23. CONTRACTS AND AGREEMENTS 4. 1999 -2000 SIDEWALK, CURB AND GUTTER REPLACEMENT - AWARD OF CONTRACT (C- 3286). Approve the plans and specifications; award the contract to Ranco Corporation for the total bid amount of $81,552.25, and authorize the Mayor and the City Clerk to execute the contract; and establish an amount of $8,000 to cover the cost of unforeseen work. 5. Item removed at the request of Council Member Ridgeway. 6. ENCROACHMENT AGREEMENT FOR CONSTRUCTION AND MAINTENANCE OF PRIVATE IMPROVEMENTS WITHIN THE BAYSIDE DRIVE PUBLIC RIGHT -OF -WAY ADJACENT TO 319 CARNATION AVENUE, CORONA DEL MAR (EP99 -353). Approve the application subject to: 1) Execution of an Encroachment Agreement for non- standard improvements: authorize the Mayor and the City Clerk to execute the Agreement; and authorize and direct the City Clerk to have the agreement recorded with the Orange County Recorder; 2) An Encroachment Permit issued by the Public Works Department; 3) a Building Permit issued by the Building Department; and 4) the Building Department, General Volume 52 - Page 686 INDEX Ord 99 -23; Obstructions On Public Property (70) C -3286 1999.2000 Sidewalk, Curb & Gutter Replacement (38) EP 99 -353 Carnation Avenue Encroachment Agreement (65) City of Newport Beach City Council Minutes September 13, 1999 • Services Department and Public Works Department shall approve improvements. ENCROACHMENT AGREEMENTS FOR CONSTRUCTION AND MAINTENANCE OF PRIVATE IMPROVEMENTS WITHIN THE OCEAN BOULEVARD PUBLIC RIGHT -OF -WAY ADJACENT TO 3601 AND 3611 OCEAN BOULEVARD, CORONA DEL MAR (EP99 -348). Approve the application subject to: 1) Execution of Encroachment Agreements for non - standard improvements: authorize the Mayor and City Clerk to execute the agreements; and authorize and direct the City Clerk to have the agreements recorded with the Orange County Recorder; 2) Encroachment Permits issued by the Public Works Department; 3) Building Permits issued by the Building Department; and 4) the Building Department, Fire Department, General Services Department, and Public Works Department shall approve the plans and construction of improvements. 8. AMENDMENT TO THE JOHN WAYNE AIRPORT (JWA) SETTLEMENT AGREEMENT APPROVING AN INCREASE IN LEASEABLE SPACE. Approve the request to increase leaseable space at JWA; and direct the Mayor to execute the Fourth Supplemental Stipulation modifying the JWA Settlement Agreement. 9. CONTRACT FOR NEWPORT CENTER PLANNING PROJECT • MANAGEMENT (C- 3304). Approve a professional services agreement with Hogle- Ireland, Inc. for professional project management and planning services. • MISCELLANEOUS ACTIONS 10. PLANNING C Receive and file. AGENDA FOR SEPTEMBER 9, 1999. 11. CONCLUSION OF THE 1999 WEED ABATEMENT PROGRAM. Remove the second public hearing for weed abatement assessment from the October 25, 1999, Council meeting agenda; and remove the adoption of a resolution confirming weed abatement costs from the October 25, 1999, Council meeting agenda. 12. BUDGET AMENDMENT (BA -007) TO ACCEPT DONATION IN THE AMOUNT OF $125,000 FROM THE FRIENDS OF THE LIBRARY TO THE NEWPORT BEACH PUBLIC LIBRARY. Approve budget amendment and correct Account 8100 to be Account 8105. 13. NOMINATION FROM ECONOMIC DEVELOPMENT COMMITTEE (EDC) TO FILL EDC VACANCIES. Appoint Mark Murrel as Mariners Mile representative, Ron Baers as member at large, and reassign Steve Sutherland as member at large to fill vacancies on the Economic Development Committee. Volume 52 - Page 687 INDEX EP 99 -348 Ocean Boulevard (65) C -2535 John Wayne Airport Settlement Agreement (38/54) C -3304 Newport Center Planning (38) Planning (68) 1999 Weed Abatement Program (41) BA -007 Library Donation (40/50) Economic Development Committee Appointments (24) • City of Newport Beach City Council Minutes September 13, 1999 14. APPOINTMENTS TO THE ENVIRONMENTAL QUALITY AFFAIRS CITIZENS ADVISORY COMMITTEE (EQAC). Confirm Council Member Adams' appointment of Jennifer Winn as a District 4 member and Council Member Ridgeway's appointments of Louis Von Dyl and Elaine Linhoff as District 1 members to the Environmental Quality Affairs Citizens Advisory Committee. 15. Item removed at the request of Council Member Adams. Motion by Mayor Pro Tom Thomson to approve the Consent Calendar, except for those items removed (5 and 15). The motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None ITEMS REMOVED FROM THE CONSENT CALENDAR 5. ACCEPTANCE OF TRACT NO'S. 15011, 15222 & 15243 AND LOT F IN TRACT NO. 15222 (HARBOR COVE TRACT). • Referencing the terms on page 5, Council Member Ridgeway asked why The Irvine Company has the unilateral right to terminate the covenants if they are dedicating ]and for open space. City Attorney Burnham stated that the format for the covenants for the CIOSA properties was justified as an exhibit to the development agreement and that these covenants are consistent with that format. Additionally, the dedications that were required by the development agreement were to be pursuant to a form that was an exhibit to the agreement. Regarding this provision, Mr. Burnham clarified that The Irvine Company has the right to unilaterally withdraw any objections they have to any City use of the land that was at variance with the terms and conditions of the agreement. Motion by Council Member Ridgeway to accept the Offer of Dedication of the open space parcel, Lot F, Tract No. 15222 in the Harbor Cove Development and authorize the City Manager and City Clerk to execute the Offer of Dedication, and direct the City Clerk to have the Offer of Dedication recorded with the Orange County Recorder; adopt Resolution No. 99 -61 accepting the dedication of Lot F of Tract No. 15222, and direct the City Clerk to have the Resolution recorded with the Orange County Recorder after the Offer of Dedication has been recorded; approve the improvement plans and specifications and accept the public improvements constructed in conjunction with Tract Nos. 15011, 15222 & 15243; authorize the City Clerk to release the faithful performance bonds for Tract No's. 15011, 15222 & 15243; authorize the City Clerk to release the labor and material bonds for Tract No's 15011, 15222 & 15243 in six months provided no claims have been • filed; approve an Encroachment Agreement with the Harbor Cove Community Association for the construction of non - standard street improvements, authorize the Mayor and the City Clerk to execute the Agreement, and authorize and direct the City Clerk to have the Agreement Volume 52 - Page 688 INDEX Environmental Quality Affairs Citizens Advisory Committee (EQAC) Appointments (24) Ord 99 -24 Res 99 -61 Tracts 15011, 15222 & 15243/ Harbor Cove Tract (Tract Maps) • • City of Newport Beach City Council Minutes September 13, 1999 recorded with the Orange County Recorder; and introduce Ordinance No. 99 -24 providing for enforcement of the California Vehicle Code on the roads within the Harbor Cove Development. The motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None 15. PROPOSED CITY COUNCIL POLICY I -27 (PARKS, BEACHES & RECREATION COMMISSION AUTHORITY, PUBLIC NOTICE REQUIREMENTS AND APPEAL PROCEDURES). In response to Council Member Adams' questions, City Attorney Burnham stated that a separate resolution will be created within 30 days to establish the appeal fee. In response to Council Member Glover's questions, Mr. Burnham indicated that Council has the right of review and that there is currently no time limit. Council Member Glover noted that there is a time limit to appeal Planning Commission actions and that this policy is written very similar to the Planning Commission's provisions. Mr. Burnham concurred that including a time limit would be a good addition to the policy. Council Member Glover believed that Council would want to keep this in concert with Planning Commission provisions. In response to Mayor O'Neil's questions, Mr. Burnham clarified that changes can be made without bringing the policy back for Council review. Mayor O'Neil indicated that it would be appropriate to have the Parks, Beaches & Recreation Commission appeal procedures be consistent with that of the Planning Commission appeal procedures. Motion by Council Member Glover to approve Council Policy I -27, but amend the policy's time limits to be consistent with Planning Commission's time limits for appeals and Council reviews, and establish the appeal fee to be less than the cost for a Planning Commission appeal. Following discussion, the motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None PUBLIC COMMENTS • Allan Beek, 2007 Highland, noted that there is an initiative petition being • circulated in the City. He indicated that, had the initiative been in effect the last 10 years, 12 of the 55 General Plan Amendments (GPA) would have needed to go through the election process. He reported that the 12 CPAs are: GPA 88 -2(13) (Toyota Motor Sales); GPA 89 -2(A) (Santa Ana Heights); GPA 90- Volume 52 - Page 689 I1 Policy I -27 Parks, Beaches & Recreation Commission (24/69) • • • City of Newport Beach City Council Minutes September 13, 1999 3(A) (Sheraton Hotel); GPA 92 -1(C) (Old Newport Boulevard Plan); GPA 93 -2(A) (Conversion of Aeronutronics); GPA 93 -3(B) (PacTel Camelback); GPA 94 -1(B) (Edwards Big Newport Cinemas); GPA 94 -1(F) (Pacific View Memorial Park); GPA 94 -2(B) (Fashion Island Expansion); GPA 95 -1(B) (Fletcher Jones); GPA 95- 2(C) (Corona del Mar Plaza); and GPA 97 -2 (Bonita Canyon). Tom Thomas, 1224 Berkshire Lane, stated that yesterday was the Cannery Restaurant's last day. He expressed the opinion that its closure is a tragedy for the City and especially to him since his father owned and operated the Cannery from 1935 to 1968. He believed that the Cannery was the last element that proved that Newport Beach was once a fishing town, and that it is sad to lose it for a few homes. He indicated that the Cannery provided thousands of jobs and was the main economy for the City until the mid- 1940's. Mr. Thomas believed that the City probably will not have the chance to rebuild it again if it is demolished and that there are some decisions that need to be reversed. He noted that the Cannery has brought tourism to the City, has special pride for the City, and should not be removed so easily. He requested that Council develop a task force to look at the property and put a hold on its demolition. Jack Sedler, 260 Cagney Avenue, stated that the Cannery has always been an asset in the community since it brings in tourism and revenue. He believed that, if the City is going to close the Cannery, all the restaurants in the City should be closed. He indicated that he represents a conglomerate of Newport Beach people who will buy any good restaurant in the City to keep them open. He expressed the opinion that this should go to a vote of the people and encouraged everyone who agrees with him to write their Council Member. PUBLIC HEARINGS 16. 17 STATUS REPORT ON DEVELOPMENT AGREEMENT NO. 6 (THE IRVINE COMPANY, CIRCULATION IMPROVEMENT AND OPEN SPACE AGREEMENT [ CIOSA]) (contd. from 7/12/99 & 8/9/99). Mayor O'Neil opened the public hearing. There being no testimony, Mayor O'Neil closed the public hearing. Motion by Council Member Glover to determine compliance of Development Agreement No. 6. Council Member Glover stated that she is pleased to see that staff followed through with her suggestions and that proper fences will be erected. The motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None INDEX C -2920 Development Agreement No. 6 CIOSA (38) APPEAL BY THE NEWPORT BEACH BREWING COMPANY OF THE I Use Permit 3485 PLANNING COMMISSION'S DENIAL OF AN AMENDMENT TO USE Newport Beach PERMIT NO. 3485 TO ALLOW A CHANGE IN ALCOHOLIC Brewing Company Volume 52 - Page 690 • City of Newport Beach City Council Minutes September 13, 1999 BEVERAGE CONTROL (ABC) LICENSE TYPE TO ALLOW FULL ALCOHOLIC BEVERAGE SERVICE. Mayor O'Neil opened the public hearing. Keith Bohr, appellant, 415 Townsquare Lane, No. 219, Huntington Beach, stated that he is an investor in the Newport Beach Brewing Company and a consultant on the appeal. He requested that their use permit be amended to allow full alcohol service so that the Brewing Company can remain competitive with the other restaurants in the area. Referencing Exhibit A (Findings and Conditions for Denial), he reported that they represented only .07 percent of the crimes in Reporting District 15 (Finding 1); that they are not trying to add a license, but are just wanting to modify their existing license (Finding 2); that they have the support of the residents within 100 feet of the restaurant, generate tax revenue, provide 45 jobs, and is the only brewery in the City (Finding 3); and that they disagree with Finding 4 because of their track record over the past 4.5 years and because they would not contribute to any of the detriments mentioned. Mr. Bohr respectfully requested that Council approve the Conditions for Approval (Exhibit B). He emphasized that the Brewing Company is a permitted use and that approving this will not be detrimental to the City. In response to Council Member Ridgeway's questions, Senior Planner Alford confirmed that the use permit is specifically for a restaurant/brewpub; that, • if the Brewing Company fails, the new operator is obligated to run a restaurant/brewpub under the terms and conditions of the conditional use permit; and that the Newport Beach Brewing Company is the only brewpub in the City. Shawn Needelman, 46 Agostino, Irvine, Newport Beach Brewing Company Operations Manager, stated that he has been with the Brewing Company since it opened in April 1985. He emphasized that they are not a bar that serves food, but a restaurant that also brews its own beer; they do not have the lines that they used to; they do not have late night parties; they do not have a DJ, band, or any other form of live entertainment; and they do not have a small menu. However, he believed they have evolved into an established restaurant that caters to 20 year olds to seniors, couples and families. Mr. Needelman indicated that the Brewing Company is looking for something to improve itself and believed that acquiring the license does that. He reported that the menu is continually upgraded, that food sales have continued to make up a larger percentage of the gross sales, and that it makes up nearly 64 percent for this year's sales. He stated that the sales have leveled, are lower than they were last year, and they lose customers because they cannot provide what one or all the guests would like. Mr. Needelman believed that having the license will also benefit their regular customers because it will provide them with a choice. He clarified that they want to complement their enhanced food, wine, and special menu, and capture a more diverse clientele by acquiring this license. • Council Member Glover indicated that she saw a statement that generally states that the Brewing Company will close if this does not occur. Mr. Needelman stated that they will not close tomorrow if they do not get the license; however, he reiterated that their sales are down and that they Volume 52 - Page 691 no INDEX • City of Newport Beach City Council Minutes September 13, 1999 INDEX believe it could be attributed to them not being able to sell hard alcohol or spirits. Council Member Glover emphasized that only 4 Planning Commissioners were present at the meeting. Mr. Needelman believed that the Planning Commission probably denied their request because of the high concentration in Reporting District 15 and because they were not sure that adding this license would be beneficial to the Brewing Company or help the community in any way. He expressed the opinion that the license would allow the Brewing Company to improve the menu and reiterated that alcohol is needed to be competitive with other restaurants. Council Member Debay expressed concern with the concentration of bars in that area and that young people tend to jump from bar to bar during the summertime. This causes them to walk in the streets late at night and disturb residents. She stated that she is concerned that the Brewing Company will be more of a target for the bar hoppers if they are a full service bar. Mr. Needelman reported that they card everyone that walks in the door, they have never had problems with under -aged drinking or arrests, the amount of drunk driving incidents involving the Brewing Company is very minimal, the employees attend alcohol class, and managers are on the floor at all times. He believed it would be a benefit if patrons stayed at their restaurant rather than jump from bar to bar. • Charles Huffine 3085 Yukon Avenue, Costa Mesa, expressed support of the Brewing Company's request and stated that he and his wife have been frequenting the Brewing Company for the last year. He indicated that they initially were not sure if the Brewing Company was a place they wanted to go to; however, the clientele has drastically changed to become a very comfortable place for a weekly visit. He believed that the patrons now range in age from the high -20's to the 60's and that they bring in a larger number of families. Mr. Huffine encouraged Council to consider the Brewing Company's request to have a full service liquor license because it will give them an opportunity to continue to be a successful business. He noted that the Brewing Company draws a lot of people from out of state and from the local community, and hoped that they could become a landmark restaurant. David Haithcock, 500 Newport Center Drive, stated that he works for a national bank trade association and that he entertains clients as part of his job. He expressed that he likes the Brewing Company because it has turned into a landmark for the City. He reported that he takes his clients to the Brewing Company for lunch or dinner, but that it is unfortunate that they have to leave after their meal because they want an after - dinner cocktail. He expressed his support of the Brewing Company's request so that they can continue to prosper. Pua Huffine, 3085 Yukon Avenue, Costa Mesa, stated that she and her husband have been regular patrons of the Brewing Company for about a year. She indicated that she not only has gotten to know the employees, but • has gotten to know people who also regard the Brewing Company as a home away from home. She stated that they not only find the establishment a great place to unwind, but a fine restaurant. Ms. Huffine reported that they never hesitate to bring friends, family, or business associates to the Brewing Volume 52 - Page 692 City of Newport Beach City Council Minutes September 13, 1999 • Company, or to recommend the restaurant as a premiere place. She believed that, if you are looking for something good about the City, the Newport Beach Brewing Company would be it. She stated that she has made it a personal goal to let everyone know that Newport Beach has many treasures; however, she would hate to see a place of value become a statistic because they could not stay competitive in a very competitive market. Ms. Huffine requested that Council reconsider this very reasonable request and allow the Brewing Company to continue to be hospitable hosts to their guests. Amy Anderson, 328 Fullerton Avenue, stated that she is an employee of the Brewing Company and read a fax that was sent to them by Robert J. Rosner of the Xerox Corporation. Mr. Rosner expressed his support of the Brewing Company's request to serve alcoholic beverages other than beer and wine. He indicated that he often takes customers to the Brewing Company and that the outing would be more enjoyable if he was able to offer them a cocktail before the meal. He added that the Brewing Company is a quality addition to the commercial establishments in the City. Michael Madlock, 113 3181 Street, Vice President of the Newport Beach Brewing Company, hoped that the decision - makers have been to the Brewing Company since they have built a first class operation. He stated that the Brewing Company has been managed properly and would appreciate Council's support of the appeal. • Orazio "Raz" Salmon, 2600 Newport Boulevard, No. 212, President of the Newport Beach Brewing Company, reported that he was one of the first breweries in the area and now there are 16 breweries. He noted that they no longer have lines and that he would rather build on the restaurant. There being no further testimony, Mayor O'Neil closed the public hearing. In response to Council Member Adams' questions, Mr. Borg clarified that the Brewing Company is not open until 2 a.m. because of an ABC condition which closes them at 1 a.m. on Fridays and Saturdays. Assistant City Manager Wood noted that Condition 10 indicates that the Brewing Company may not serve alcoholic beverages without serving the regular menu. Mr. Alford clarified that the Brewing Company always had a 2 a.m. closing time but ABC placed the 1 a.m. limit after the City approved them. Council Member Adams suggested that the condition be consistent with ABC's. Mayor O'Neil noted that page 1 of the staff report states that "...the ABC is required to deny the application for the license unless the City determines that public convenience or necessity would be served by its issuance." He expressed the opinion that the City is bound to follow ABC's denial unless they can find that the public's convenience and necessity requires its issuance. Ms. Wood reported that this is the State law that deals with areas where there is over - concentrations of liquor licenses and that Council Policy K -7 delegates that authority to the Chief of Police for most cases. She confirmed that the Police Chief could deny the license if he finds that there • is no public convenience or necessity after Council approves it, but doubts he would do that. Additionally, since the City has a local alcoholic beverage outlet ordinance, one of the considerations for granting a use permit for a new or expanded alcoholic beverage outlet is to look at whether the public Volume 52 - Page 693 11013 Al City of Newport Beach City Council Minutes September 13, 1999 isconvenience or necessity is served. Motion by Council Member Glover to reverse the Planning Commission's denial of amended Use Permit No. 3485. Council Member Glover believed that this is a reasonable request. She noted that she can go almost anywhere to find similar establishments and believed that Council has a responsibility to be competitive with other cities. She expressed the opinion that the Planning Commission might have felt the same way if all the Commissioners attended the meeting. Council Member Adams requested that Council Member Glover amend the motion to modify Condition 7 so that the hours of operation for Fridays and Saturdays is from 6 a.m. and 1 a.m. Council Member Glover agreed. Council Member Ridgeway stated that the staff report contained a lot of testimony from the Police Department, but believed that they were not comfortable advocating a change because the Brewing Company is in Reporting District 15. However, it appeared that the Police Department did not have a problem with an operator whose staff is well- trained and runs a good operation. He stated that he is satisfied that they are very responsible, have trained their people, and run a good operation. He noted that there has only been one Police instance that involved the Brewing Company and added that he has patronized the Brewing Company. He reported that the Brewing • Company had a toxic problem in which they immediately called the authorities. This also proves that they are responsive citizens because they stopped the problem and took responsive action themselves. He expressed support of the appeal, noting that there are two restaurants that are closing and two licenses that are being lost. He stated that he finds the Brewing Company to be a well -run operation and that he wants to give them an opportunity to continue. Regarding the land use decision, Council Member Ridgeway emphasized that the conditional use permit is for a restaurant/brewpub and that anyone who operates on that land will have to continue to use the conditional use permit and continue to operate a brewpub. He believed this helps prevent a problem if the Brewing Company fails. Council Member Debay expressed concern because the City has been sending a message to Cannery Village that it does not want to intensify the alcoholic use and make a situation worse. Regarding Council Member Debay's questions regarding Standard City Requirement K, Ms. Wood confirmed that the Planning Commission can call this for review to modify or add conditions, or even conduct hearings for the possible revocation of this license if this adds to the intensity of the problems. Mr. Burnham suggested that the word "variance" be changed to "use permit" in this condition. He clarified that ABC handles their own permits, and added that, when Council grants a use permit, privileges /conditions run with the land and applies to subsequent property owners. • In response to Mayor Pro Tem Thomson's question, Mr. Burnham stated that the standard to determine if they are complying is whether they are detrimental to the health, safety, and welfare of the community. Therefore, any factor like intoxication, excessive noise, and fights /disturbances would Volume 52 - Page 694 INDEX r � U • E City of Newport Beach City Council Minutes September 13, 1999 warrant a call for a or possible revocation of the conditions. The amended motion to reverse the Planning Commission's denial of amended Use Permit No. 3485; amend Condition 7 so that the hours of operation for Fridays and Saturdays is between 6 a.m. and 1 a.m.; and change "variance" to "use permit" in Standard City Requirement K carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Mayor O'Neil Noes: Noyes Abstain: None Absent: None 18. VACATION AND ABANDONMENT OF A PORTION OF AN ALLEY BOUNDED BY GRAND CANAL, BALBOA AVENUE, ABALONE AVENUE AND PARK AVENUE (LITTLE BALBOA ISLAND). Mayor O'Neil opened the public hearing. There being no public testimony, Mayor O'Neil closed the public hearing. Motion by Council Member Noyes to adopt Resolution No. 99 -62 ordering the vacation and abandonment of a 2.5 -foot wide strip of right -of -way on both sides of a 25 -foot wide alley on Little Balboa Island. The motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None 19. AMENDMENT TO THE CIRCULATION ELEMENT OF THE NEWPORT BEACH GENERAL PLAN TO RECLASSIFY THE SEGMENT OF SANTIAGO DRIVE BETWEEN IRVINE AVENUE AND TUSTIN AVENUE AS A COMMUTER ROADWAY ON THE MASTER PLAN OF STREETS AND HIGHWAYS [GPA 98- 3(D)]. Mayor O'Neil opened the public hearing. Bryan Bond, 2431 Santiago Drive, stated that he has been involved with this issue for about four years. Mr. Bond requested and received clarification from Mayor O'Neil that Council intends to continue Agenda Item 21. Chris Schwartz, 2401 Santiago Drive, on behalf of the Santiago Drive residents, expressed his overwhelming support to downgrade Santiago Drive from an arterial highway to a collector street. He indicated that the effort behind this was prompted by residents who strive to institute some traffic calming measures on Santiago Drive, and that they did not have the ability to do this with the arterial highway classification. Council Member Debay noted that this came to her attention when she was Mayor in 1996. She commended Public Works Director Webb and his staff Volume 52 - Page 695 INDEX Res 99 -62 Little Balboa Island Vacation & Abandonment (90) Res 99 -63 GPA 98 -3(D) Santiago Drive Reclassification (45) • • • City of Newport Beach City Council Minutes September 13, 1999 for their tenacity, explaining that they h and then to OCTA to begin this endeavor. to go to the City of Costa Mesa There being no further testimony, Mayor O'Neil closed the public hearing. Motion by Council Member Glover to adopt Resolution No. 99 -63, adopting General Plan Amendment 98 -3(D). The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None CONTINUED BUSINESS 20. PLANNING COMMISSION'S RECOMMENDATIONS REGARDING PUBLIC INPUT ON NEWPORT CENTER PLANNING (contd. from 8/09/99 & 8/23/99). Motion by Council Member Debay to receive public input at Planning Commission Study Sessions and other public meetings. The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None CURRENT BUSINESS 21. ORDINANCE AMENDING CHAPTER 12.24 (SPECIAL SPEED ZONES) OF THE NBMC TO ESTABLISH A SPEED LIMIT OF 30 MILES PER HOUR ON SANTIAGO DRIVE BETWEEN IRVINE AVENUE AND TUSTIN AVENUE. Motion by Council Member Adams to continue this item to the September 27, 1999 Council meeting. Council Member Adams stated that he has had discussions with Santiago Drive residents and believed that some of the citizens would like to see an action plan that goes with the proposal so that they have some assurance that the City will provide an effective traffic calming measure. He indicated that more dialogue and staff work needs to be done prior to discussing this. Council Member Glover stated that she would like the City Manager to set up a community meeting and provide notices to the public. She requested that Police Chief McDonell and Transportation/Development Services Manager Edmonston also attend. Volume 52 - Page 696 INDEX Newport Center Planning (68) Special Speed Zones Santiago Drive (85) • City of Newport Beach City Council Minutes September 13, 1999 INDEX Bryan Bond, 2431 Santiago Drive, asked who will be noticed about this meeting. City Manager Bludau stated that the City might not want to invite everyone from every street so that the numbers are more manageable, noting that there are some key people that Council and the Police Chief have been talking with. Mr. Bond indicated that a meeting was already conducted that involved all the streets when Council Member Debay was Mayor. He expressed concern that these issues are being continually discussed and hoped that the goal will be approached at some point. Council Member Adams stated that it is his understanding that the problem deals with speeding on Santiago Drive. He agreed that, if discussions are about issues that affect the parallel streets, those residents should be included. However, at this point, he believed that the most productive meeting would be to meet with representatives on Santiago Drive. Council Member Glover stated that she called the City Manager last week to let him know that he should be the point person because she keeps receiving different comments about this and so that the City Manager will be able to ensure that the changes occur. Al Bartolic, 2312 Windward Lane, took issue with Council Member Adams' statement and noted that he has children who live on Francisco Drive and Holiday Lane, and that he lives on Windward Lane, which are all parallel to Santiago Drive. He emphasized that they are affected by Santiago Drive and are in favor of slowing down traffic on Windward Lane, Francisco Drive, and Holiday Lane, as well as on Santiago Drive. He stated that Santiago Drive will affect his streets and affirmed that they would like to be included in the discussions. Council Member Glover believed that the City parallel streets can be involved in the discussions. Judy Mader, 2418 Holiday Lane, stated that the past discussions have been a cooperative effort between the four streets and that they have tried to work together to make it advantageous to each street. Noting that each of the streets have traffic problems, although Santiago Drive's problems are the greatest, she emphasized that whatever affects them, affects the other three streets. She requested that they be included in any conversations regarding these streets. In response to Council Member Debay's questions, Ms. Mader indicated that her street now has sidewalks. Council Member Debay believed that part of the problem was that pedestrians walk in the streets on Santiago Drive because they have no sidewalks. Council Member Adams stated that he has no problem with including representatives from the other streets in the discussions. He emphasized that he has only been contacted by a constituency that say there is a speeding problem on Santiago Drive. He stated that he has been trying to work with them and the City to solve that problem, and noted that he has not been contacted by anybody from the parallel streets probably because • they are not in his district. He indicated that he is fine with the City Manager making them aware of the meetings. Volume 52 - Page 697 • E \J City of Newport Beach City Council Minutes September 13, 1999 Chris Schwartz, 2401 Santiago Drive, stated that he lives right in the middle of Tustin and Irvine Avenues, and offered his property as the meeting place. Mayor O'Neil stated that the City Manager will take that into consideration. The motion carried by the following roll call vote Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None 22. UNSCHEDULED VACANCY ON THE CITY ARTS COMMISSION AND APPOINTMENT BY MAYOR OF AN AD HOC APPOINTMENTS COMMITTEE. Motion by Mayor O'Neil to accept the resignation of Pat Brubaker from the Arts Commission effective immediately (term expires June 30, 2001); direct the City Clerk to advertise the vacancy pursuant to Council Policy A -2; and appoint Council Members Noyes, Ridgeway, and Adams to serve on the Ad Hoc Appointments Committee. The motion carried by the following roll call vote: Ayes: Adams, Glover, Thomson, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: None Abstain: None Absent: None 23. REVIEW OF AUTOMOBILE SALES TAX INCENTIVE PROGRAM AND REQUEST FROM JAGUAR FOR CITY FINANCIAL ASSISTANCE IN PROVIDING A NEWPORT BEACH DEALERSHIP. Assistant City Manager Wood stated that the Economic Development Committee (EDC) reviewed the incentive program and recommends retaining the program for high tax generating businesses. They also recommend limiting the time a business can apply for this assistance to be prior to the issuance of a building permit for the project. Motion by Mayor O'Neil to adopt Resolution No. 99 -64 and direct staff to prepare a Sales Tax Increment Reimbursement Agreement with Jaguar that provides for reimbursement not to exceed $112,000. Council Member Glover disagreed with the statement on page 2 of the staff report which states, "EDC also recommended modifying the program to limit the time in which a dealership may apply for assistance to avoid the recent situation in which the City Council was considering a request for assistance from a dealership that has been operating profitably for some time." She reported that the City worked with this dealership for several years and that it came to Council at a late time. She believed that the City should honor its commitments. Volume 52 - Page 698 INDEX Arts Commission Vacancy (24) Res 99 -64 Automobile Sales Tax Incentive Program (40) • City of Newport Beach City Council Minutes September 13, 1999 INDEX Regarding the motion, Ms. Wood clarified that there are 3 options under recommendation 3. She stated that the EDC also took a look at Jaguar's request but were hesitant about discussing actual numbers since Council had not directly referred this issue to them. EDC did recommend approval of some kind of sales tax sharing, but not Jaguar's requested amount. She reported that she and the economic consultants looked at the request and that, according to the resolution in which the focus is on the costs of construction to bring the dealership in, assistance in the amount of $111,700 can be justified. Noting that the resolution also provides for costs that relate to the operation of the project, she indicated that Jaguar is talking about doing business in a different way. This may result in higher operating costs. She reiterated that Jaguar is requesting $600,000 but staff was not comfortable with recommending more than $112,000. Mayor O'Neil withdrew his motion. Lawrence Williams, 416 White Cap Lane, Experienced Management Group, stated that Experienced Management Group is the management company responsible for the design, development, and launch of South Coast Motorcars. He pointed out that it has been five years since Newport Imports closed on Pacific Coast Highway and reported that Jaguar has invested a significant amount of money in the Newport Beach market to rebuild the goodwill in the Jaguar market. Mr. Williams stated that there has been a great deal of community input relative to the design and development of the • South Coast Motorcars Retail Experience, and that they have indicated to Jaguar that there is a desire by the citizens to evolve the luxury car business to a retail luxury experience similar to non - automobile luxury goods. Therefore, there are costs involved that are above and beyond the traditional costs associated with operating a dealership. He indicated that he has a seven minute video of three of the soft- opening events that they conducted over the past three years for South Coast Motorcars. Mr. Williams requested that Council endorse a Sales Tax Increment Reimbursement Agreement in the amount of $600,000 in order to provide the type of high quality, personal service that South Coast Motorcars is designed to provide. Council Member Debay pointed out that the staff report indicated that South Coast Motorcars anticipates 40 percent of their sales to come directly from Newport Beach. Mr. Williams stated that the specifics regarding how to monitor that the sales are not transferred to the primary dealership have not been defined and that it would be acceptable to come to some type of contingency as it relates to that issue. Regarding leases, Ms. Wood reported that the City does now derive the sales tax from leases under State law; however, it does not come to the City as quickly since it is typically financed along with the lease. Regarding the "extraordinary expenses," Mr. Williams explained that the difference in the amounts is particularly a result of the compensation and benefit package for the staff, and the cost to incorporate a non - automotive boutique into the dealership to take away the pressure associated with shopping for a vehicle. • In response to Mayor Pro Tem Thomson's questions, Mr. Williams confirmed that the site is in Corona del Mar, north of Shorecliff Road and across the street from the Five Crowns Restaurant; the lease is a ground lease with the option to purchase; and the facility is a boutique /showroom that also Volume 52 - Page 699 • City of Newport Beach City Council Minutes September 13, 1999 INDEX conducts emergency, light service. Regarding the staff report indicating that "Jaguar will not establish a satellite in Newport Beach without City assistance," Mr. Williams relayed Jaguar's position that they will not be able to continue the project if they do not receive financial assistance from the City in the amount of $600,000. Mr. Williams added that some of the car servicing will take place at the Corona del Mar site, not the Mission Viejo site, and that the community indicated that they did not want plate glass windows in front of the facility. Mayor Pro Tem Thomson stated that he cannot get excited about this project. Further, that requesting $600,000 or there will be no project, does' not put the City in a good position. Mr. Williams commented that the studies indicate that there is a yearning to evolve the dealership experience in the City and that financial assistance is required in order to do this. Council Member Ridgeway stated that he was at the EDC meeting when this was discussed and that EDC objected to the $600,000 request. He believed that the program is a way to entice Jaguar to the City with their own money, explaining that this is a payback over a period of time using their retail sales tax dollars. He stated that, long term, the City would still receive their sales tax dollars especially if Jaguar purchases the facility. He pointed out that the current ordinance limits this program to only dealerships and is an assistance program. Council Member Ridgeway indicated that he does not have a problem with the withdrawn motion but would increase the dollar • amount over a four year period, noting that the report does not talk about third or fourth year amounts. Council Member Adams concurred with Council Member Ridgeway, but emphasized that a case has not been made for the $600,000 request. He noted that, even though there may be a yearning for a Jaguar dealership in the City, the City understands there is a significant tax benefit to the City. He emphasized that Jaguar should want to be in Newport Beach because this is where they will sell their cars. He indicated that he would be supportive of a $200,000 or $250,000 amount and suggested waiving the $50,000 in fees. Motion by Council Member Ridgeway to adopt Resolution No. 99 -64 adding a provision limiting the time in which applications may be filed to the existing incentive program; and direct staff to prepare a Sales Tax Increment Reimbursement Agreement with Jaguar that provides for reimbursement in an amount not to exceed $300,000. Council Member Glover expressed the opinion that the staff report was confusing and not specific. She stated that she feels that a Council subcommittee needs to be formed to review this and come back with a recommendation. She expressed concern that the amounts are being changed and that most of the leases come from people from the east coast, thereby, the City receives no money. She indicated that she is supportive of Jaguar but wants to do this right. • Mr. Williams reiterated that he was at the Jaguar Headquarters last week and that they reaffirmed the amount needed. He requested more time if Council has not received sufficient backup to substantiate Jaguar's request. Volume 52 - Page 700 City of Newport Beach City Council Minutes September 13, 1999 • Council Member Adams requested that it be clear whether this is linked to the Corona del Mar site or an alternative site in the City, noting that there is no entitlement for this land use on the site. Ms. Wood concurred and added that this would require a use permit. Council Member Ridgeway clarified his motion that it does not include waiving the fees, but is for a reimbursement not to exceed $300,000, paid by 50 percent of tax received per year. Discussion ensued relative to Keyser Marston Associates' approach and methodology for coming up with the $112,000 reimbursement amount. Jack Sedler, 260 Cagney Avenue, asked why Council will not give $600,000 to the building which he feels is the "biggest eyesore in Newport Beach" (Newport Club on 32nd Street) or to Bill Hamilton, owner of the Cannery. He stated that he guarantees that no one will buy a Jaguar from Mr. Williams if he opens a dealership in the City. The motion carried by the following roll call vote Ayes: Adams, Glover, Debay, Ridgeway, Noyes, Mayor O'Neil Noes: Thomson Abstain: None Absent: None • MOTION FOR RECONSIDERATION - None. ADJOURNMENT - 9:40 p.m. • + +++ +++•aar * * * * + *a� +rrrr +r *trxx+ The agenda for the Regular Meeting was posted on September S, 1999, at 3:40 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. AnlLM• lV� City Clerk v -�- l8WK/ Recording Secretary Mayor Volume 52 - Page 701 INDEX