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HomeMy WebLinkAbout04/09/2002 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session April 9, 2002 - 4:00 p.m. ROLL CALL Present: Heffernan, Bromberg, Glover (arrived at 4:20 p.m.), Adams, Proctor, Mayor Ridgeway Absent: O'Neil (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan asked if the Planning Commission item on the regular meeting agenda was considered a part of the Consent Calendar. Assistant City Manager Wood stated that it was not, and confirmed that questions regarding the item could be asked at the regular meeting. 2. PRESENTATION BY ORANGE COUNTY DIVISION OF LEAGUE OF CITIES. Ralph Bauer, President of the Orange County Division of the League of California Cities ( OCLCC) and a City of Huntington Beach council member, stated that the primary objective of the League of California Cities has been to propose and support legislation on behalf of cities. He noted that the League also does more than this and he introduced Janet Huston, Executive Director of the League, and Ann Marie Wallace, Grass Roots Coordinator. Mr. Bauer stated that the OCLCC hopes to maintain the things that are good about Orange County by working with the 34 cities, as well as the County. He stated that teambuilding and cooperation are important in working on the issues. Mr. Bauer stated that there is also an affiliation between OCLCC and the Orange County Council of Governments (OCCOG) and the Southern California Association of Governments (SCAG). He stated that SCAG has the legal requirement to do housing and transportation planning. Mr. Bauer stated that legislation is still important and the chief issue is to try to preserve money for the cities. Mr. Bauer stated that Ms. Wallace works for both Los Angeles and Orange counties, and tries to mobilize city resources and interact with the elected representatives in Sacramento to get them to understand the plight of the cities. Mayor Ridgeway stated that the 34 cities in Orange County are united on the John Wayne Airport Settlement Agreement. Mr. Bauer noted that there is a better relationship between the cities in South Orange County and North Orange County than there used to be. Volume 55 - Page 91 INDEX League of Cities Presentation (61) City of Newport Beach Study Session Minutes April 9, 2002 INDEX Ms. Wallace stated that she is the League's Regional Representative with the Grassroots Network Program. She noted that the program is a culmination of many years of effort and recognition by the League that a field program needed to be done in order to get the membership involved in protecting city services. Ms. Wallace stated that on May 7, 2002, the State Legislature will issue revised budget numbers. She noted that the current deficit is $17 billion. She stated that the League has well -timed legislative action days planned for May 15 and 16, 2002. She provided flyers and stated that it will be sponsored by a coalition of groups. Ms. Wallace stated that she would be reporting regularly to the OCLCC on the accomplishments of the grassroots program. She encouraged the City Council to provide her with any contacts they may know of and suggestions on how to engage more community partners. City Manager Bludau asked if the California State Association of Counties (CSAC) was working with the program. Ms. Wallace confirmed that CSAC is a full partner in the legislative action days. Mayor Ridgeway noted that the Newport Beach City Council hasn't participated well in OCLCC and hoped that the presentation at the current meeting would encourage better participation. He stated that the City of Newport Beach has particular interest in Assembly Bill 2333, the Nakano Bill. Ms. Wallace stated that Orange County is in opposition to the bill, while Los Angeles County has not yet taken a position. She added that she understands that some amendments to the bill are going to be submitted. She stated that the League currently has a watch position on the bill, but that anything punitive is usually not supported. Mayor Ridgeway additionally asked the League's position on Assembly Bill 1969, the Maddox Bill, which is legislation preventing the Orange County Sanitation District from filing for a 301 -H waiver. Ms. Wallace stated that she wasn't aware of the status of the bill. Council Member Glover noted that Representative Maddox represents part of Newport Beach. Ms. Wallace added that Mr. Maddox was the only Orange County Republican who did not sign a letter in the Fall of 2001 that asked the Governor to protect the revenues of cities. Mr. Bauer thanked the City Council for providing him the opportunity to make a presentation and encouraged the City Council members to attend the OCLCC meetings and become involved. He noted that OCLCC is making an impact by keeping track of 19 different regional organizations whose decisions affect the cities in Orange County. City Manager Bludau stated that Orange County is fortunate to have such governmental networking, which makes it the most active division in the State. 3. WATER QUALITY EDUCATION UPDATE [ORAL & VIDEO PRESENTATION] (contd. from 3/26/02). Mayor Ridgeway stated that other coastal cities are actively educating their citizens on water quality issues and that the Newport Beach Coastal/Bay Volume 55 - Page 92 Water Quality Education Update (51) City of Newport Beach Study Session Minutes April 9, 2002 Water Quality Citizens Advisory Committee will be requesting approval to do an educational tape to educate the citizens in Newport Beach. He stated that the video to be shown at the current meeting was produced by high school students in Dana Point. Assistant City Manager Kiff presented the two minute video, entitled "A Water Quality Educational Video ". Mayor Ridgeway noted that education is an important component in improving water quality. Council Member Glover stated that if the City is serious about improving water quality, definitive projects with quantitative measures need to be done. She stated that her goal is to have the City spend $5 million to improve water quality, but she would like it spent on projects that directly affect the water. She noted from her experience on the Air Quality Management District (AQMD), that she has learned that you can't change people's habits. Assistant City Manager Kiff stated that proposals, such as those being recommended by Council Member Glover, would be included in the upcoming budget. Assistant City Manager Kiff stated that Newport Beach recently hosted a Water Quality Education Symposium for the Orange County Coastal Coalition. He stated that they discussed the different water quality education efforts throughout the County and learned which education programs were working and which ones were not. He noted that this met part of the City's obligations under the new National Pollutant Discharge Elimination System (NPDES) Permit, and that the educational plans would be done in conjunction with specific projects. Dolores Otting asked if the symposium was open to the public, noting that she only read about it in the Register on the day that it was held. She suggested that such symposiums in the future be better publicized so that more members of the public would have the opportunity to attend. Ms. Otting additional requested that a drain in Spyglass Hill Park that appears to be flowing into the storm drain be investigated. Assistant City Manager Kiff stated that the Orange County Coastal Coalition has met for two years on the last Thursday of the month at the Central Library. He stated that the meetings are open meetings and the public is invited to attend. 4. ANNEXATION UPDATE — SANTA ANA HEIGHTS & BAY KNOLLS. Mayor Ridgeway recused himself since he owns properties in the areas to be discussed. Assistant City Manager Kiff stated that the City filed the application to annex Newport Coast, East Santa Ana Heights and Bay Knolls in the fall of 2000, after extensive negotiations with Newport Coast. He stated that early in 2001, the annexation applications were separated into three different applications. The Newport Coast annexation was approved in November, 2001, and became effective on January 1, 2002. Assistant City Manager Kiff stated that the other two annexations were on hold pending the City of Volume 55 - Page 93 INDEX Annexation Update/ Santa Ana Heights & Bay Knolls (21) City of Newport Beach Study Session Minutes April 9, 2002 INDEX Costa Mesa filing to annex the areas neighboring East Santa Ana 11etghts and Bay Knolls. He stated that the Orange County Local Agency Formation Commission ( LAFCO) would be scheduling a workshop in May or June of the current year, with a hearing to most likely take place in July, 2002. Assistant City Manager Kiff displayed aerial photos of the two pending annexation areas. Additionally, he displayed a summary of the areas and noted that East Santa Ana Heights is approximately 194 acres with a population of 1,000 and 406 dwelling units, and Bay Knolls is approximately 55 acres with a population of 418 and 190 dwelling units. Assistant City Manager Kiff stated that Santa Ana Heights is part of a redevelopment area, which means that the increase in property taxes due to the improvements in the area are not available to an annexing city until at least 2035. Prior to then, the taxes go to the redevelopment agency to pay for the improvements. He noted that a redevelopment Project Area Committee (PAC) acts as the citizens advisory committee on all Santa Ana Heights issues, and is a required aspect of redevelopment law. Assistant City Manager Kiff stated that the Santa Ana Heights PAC is currently interested in using some of their redevelopment funds on a community center. He stated that the City might consider operating the center if the redevelopment agency would fund it. He noted that there is some revenue potential involved with the center. Additionally, City Manager Kiff noted that the City is looking for a permanent site for a fire station in Santa Ana Heights and would like to work with the redevelopment agency on the funding. He stated that there is some opposition from PAC regarding having the community center and the fire station on the same site. Assistant City Manager Kiff displayed aerial photos of potential sites for a community center and fire station. Council Member Glover stated that fire stations have traditionally been placed beside such things as community centers. She asked why the PAC would be objecting to this in their community. Assistant City Manager Kiff stated that he believes that they don't want to make any changes to their plans for the site they've chosen for the center. Council Member Glover stated that it makes economic sense to place municipal facilities together and that a community usually supports this concept. Assistant City Manager Kiff stated that another issue with Santa Ana Heights involves West Santa Ana Heights and the Santa Ana County Club, both of which are within Costa Mesa's sphere of influence. He displayed aerial photos of the areas, and stated that both are currently included in Costa Mesa's annexation application. He stated that the Costa Mesa and Newport Beach applications would be considered at the same time by LAFCO even though they don't conflict. Referring to the aerial photo, Assistant City Manager Kiff noted that the runway protection zone is not annexable. Per Council Member Proctor's question, Assistant City Manager Kiff stated that the Costa Mesa and Newport Beach applications do not conflict because the cities do not overlap in any of the areas they're asking to annex. Volume 55 - Page 94 City of Newport Beach Study Session Minutes April 9, 2002 Regarding the Bay Knolls annexation, Assistant City Manager Kiff stated that the residents in the area have been waiting a long time for the annexation and have expressed some frustration over the length of time it has taken. He stated that a recent change in the annexation is a suggestion by LAFCO to add the Churchill tract to the application. Assistant City Manager Kiff displayed an aerial photo of the tract. INDEX Assistant City Manager Kiff stated that although the hearings would begin this summer, the Santa Ana Heights application could be held up because of the desire by the West Santa Ana Heights residents to be annexed into Newport Beach. He stated that LAFCO will most likely not approve an application when there is not full agreement. Assistant City Manager Kiff stated that West Santa Ana Heights might protest the Costa Mesa application, although this could happen after the Newport Beach application is approved. Assistant City Manager Kiff added that the City Manager has written a letter to the County asking for assistance with the fire station. Assistant City Manager Kiff stated that other issues that need to be resolved include the decision on whether to add the Churchill tract in the Bay Knolls application and whether to support the community center request by Santa Ana Heights. Assistant City Manager Kiff stated that more information on the annexations could be obtained by accessing the City's website or by contacting LAFCO. Council Member Glover asked if the City of Costa Mesa had any problems with the Churchill tract being added to the Newport Beach application. Assistant City Manager Kiff stated that Costa Mesa has already agreed that the tract would be more appropriate in Newport Beach. Council Member Glover stated that it is important for Newport Beach to continue to work in partnership with Costa Mesa. Barbara Venezia, Santa Ana Heights PAC member, stated that PAC is opposed to combining the fire station on the same site with the community center. She stated that they have an extensive plan on how to complete the community center. She added that they are also opposed to using PAC funds for the fire station. Ms. Venezia stated that the redevelopment agency has not approached PAC yet with the City's request. She stated that PAC has been working on and budgeted funds for undergrounding and trail issues, as well as the community center. She requested that PAC be included in discussions on the use of redevelopment funds. Robert Hanley, West Santa Ana Heights, stated that several months ago, he provided the City Council with a list of the issues that LAFCO has with the annexations. He stated that he has heard contradictory statements at the current meeting. Mr. Hanley stated that he is against dividing west and east Santa Ana Heights, and that West Santa Ana Heights needs to have better representation on the Santa Ana Heights PAC. Holly Jarvis, Santa Ana Heights resident, stated that PAC only recently Volume 55 - Page 95 City of Newport Beach Study Session Minutes April 9, 2002 heard of the City's desire to include the fire station on the same site as the community center. She stated that some of the opposition is that they weren't informed sooner, and have spent quite a bit of effort on their plans for a community center. Ms. Jarvis stated that the community center needs parking within the site and on an adjoining piece of property, which is currently for sale. She stated that timing is of the essence. INDEX Council Member Glover confirmed with Assistant City Manager Kiff that there would only be a small amount of revenue coming to Newport Beach prior to 2035, but services to the community would be provided. Council Member Heffernan asked if there were projections on the total expenditures needed to service the area. Assistant City Manager Kiff stated that the initial fiscal impact analysis was combined with the Newport Coast annexation. He stated that a separate analysis of Santa Ana Heights had not been completed, but he guessed that it would result in an approximate $200,000 annual loss to the City. Assistant City Manager Kiff stated that the temporary fire station in Santa Ana Heights was not set up solely to serve Santa Ana Heights. Council Member Heffernan stated that the issue of the fire station is a separate issue. He added that if the annexation of Santa Ana Heights would result in a net loss to the City and if the objections by the community continue, that there needs to be a valid reason to proceed with the annexation. Council Member Glover agreed that if the Santa Ana Heights community doesn't want to be a part of Newport Beach, the annexation should possibly be reconsidered. Assistant City Manager Kiff stated that it would be an option for the City to discontinue pursuit of the annexation. He added that he was disappointed that PAC didn't seem to be supporting the use of redevelopment funds for a fire station. Council Member Proctor asked for a report on when the pros and cons of the Santa Ana Heights annexation were discussed. Assistant City Manager Kiff stated that since East Santa Ana Heights is within the City's sphere of influence, Newport Beach is supposed to annex the area, although it is not actually required to do so by State law. He stated that in 1999, the City Council was encouraged by the County to include East Santa Ana Heights and Bay Knolls in the Newport Coast annexation application. He stated that later, the annexation areas were separated. City Manager Bludau added that when the decision was made to annex Newport Coast, it appeared to be a good time to include the City's other sphere of influence areas. Council Member Glover added that the County's encouragement played a factor in the City Council's decision to include the other areas in the Newport Coast application. She stated, however, that she didn't agree with continuing to pursue the Santa Ana Heights annexation separately if it would result in a revenue loss to the City and if the community didn't want to be a part of Newport Beach. She suggested that the item be agendized and discontinuance of the process be considered. She asked Council Member Heffernan for his views on the Newport Coast residents. Volume 55 - Page 96 City of Newport Beach Study Session Minutes April 9, 2002 INDEX Council Member Heffernan stated that he doesn't believe the Newport Coast residents feel as though they are a part of Newport Beach and they don't seem to have an interest in what is going on in other parts of the City. Council Member Adams stated that Newport Beach is a compilation of many annexations and that the same feelings were expressed during the prior annexations. Council Member Adams suggested that over time, the annexed areas will begin to feel more a part of the City. He asked if the City decided not to annex Santa Ana Heights, if the fire station idea would also be abandoned. Assistant City Manager Kiff stated that if the area weren't annexed, at the conclusion of the lease, the fire station would be moved to within City boundaries. Council Member Adams asked if the fire station would continue to serve the Santa Ana Heights area. Fire Chief Riley stated that the automatic aid agreement between the City and the Orange County Fire Authority requires the parties to give and take based on shared resources. He stated that most likely the County would not add a fire station in Santa Ana Heights, that the City would continue to service the area and a trade may be made in another area. Fire Chief Riley stated that the City has no legal obligation to service the area, but that it would be appropriate. Council Member Heffernan stated that from what he understood, the temporary City fire station in Santa Ana Heights replaced a County fire station that was damaged. Council Member Heffernan asked if the City would be reimbursed for the fire station. Fire Chief Riley stated that the County would not be reimbursing the City because they provided services to the northern part of the City for over 30 years without substantial reimbursement. He added that the City has an obligation to provide fire protection in the airport area. Council Member Adams recalled that he supported adding a fire station to the Santa Ana Heights area because of the inequity of fire service in the northern parts of the City after the County fire station was damaged and because it made sense due to the likelihood of annexing Santa Ana Heights. He added that the City would most likely provide fire service, regardless of the annexation. Fire Chief Riley stated that the City Council could provide direction for the City not to provide services to the area. He stated that automatic aid agreements are done in many of the City's border areas and it provides a good way to provide services to all areas. Per Mayor Pro Tern Bromberg's question, Fire Chief Riley stated that approximately 60% of the calls to the Mariner's Fire Station are for service requests to Costa Mesa. Using an aerial photo, Fire Chief Riley showed where the City s fire stations are located. He noted the bay, which is a detriment to the City's response capabilities, and the placement of fire stations in the southern portion of the City. Fire Chief Riley reflected on potential sites that ended up not being possible in the past, but could have eliminated the need for a new fire station in the northern part of the City. He stated that another way to avoid adding a new fire station might be to do a complete fire station analysis and possibly look at moving some of the fire Volume 55 - Page 97 City of Newport Beach Study Session Minutes April 9, 2002 stations. 111 17 DIY Council Member Heffernan asked how paramedic service was provided to the Newport Coast area prior to the annexation. Fire Chief Riley stated that the County was able to provide initial paramedic service from their station in Newport Coast. If advanced support was needed, Newport Beach or another County station provided the service. Mayor Pro Tem Bromberg stated that he understood that the Santa Ana Heights annexation would provide the City with more clout in issues involving the John Wayne Airport. City Attorney Burnham stated that if Santa Ana Heights were a part of the City, the City would have to grant consent before the County could construct any airport - related facility within the annexed area. Mayor Pro Tem Bromberg additionally asked if the Santa Ana Heights area was earmarked for construction of any airport facilities and City Attorney Burnham responded in the negative. Council Member Glover stated that it was initially believed that annexing Santa Ana Heights would provide additional influence, but that it no longer appears to be a factor. She asked if the City could release the Santa Ana Heights area from the City's sphere of influence. Assistant City Manager Kiff stated that LAFCO would most likely be reluctant to do so because City boundaries currently surround the area. Council Member Glover stated that the west and east portions of Santa Ana Heights could be kept together and possibly annexed into the City of Costa Mesa, which could also prohibit construction of airport facilities in the area. Greg Keal, Santa Ana Heights, stated that the concern for parking for the community center is legitimate. Mr. Keal confirmed with Assistant City Manager Kiff that access from Birch Street would be needed for a permanent fire station. Mr. Keal stated that he feels that the Santa Ana Heights area would be a good source of sales tax revenue. He stated that the entire property that PAC is looking at for the community center is needed. Dolores Otting stated that the John Wayne Airport will grow, regardless of the annexation of Santa Ana Heights. Additionally, Ms. Otting encouraged the other council members to attend a Newport Coast meeting with Council Member Heffernan. Ms. Otting asked how much the City expects the new fire station to cost and how much redevelopment money is available. Assistant City Manager Kiff stated that it is expected to cost $1.5 million and that redevelopment funds total approximately $30 million to $35 million. He stated that a portion of the redevelopment funds are committed to infrastructure needs. City Manager Bludau added that the redevelopment funds are also needed over a long period of time. Ms. Otting suggested that the City look at PAC's community center and try to incorporate it into the revenue figures. She added that she understands why the Santa Ana Heights residents are upset about the City contacting the County for assistance in funding of the fire station without their knowledge. Assistant City Manager Kiff stated that the City did correspond its priority projects to PAC. Volume 55 - Page 98 City of Newport Beach Study Session Minutes April 9, 2002 N ] Don Webb, Newport Beach resident, stated that a substantial portion of the redevelopment agency revenue is generated from an area within the City's boundaries, per a prior agreement. He stated that it would make sense to spend part of this money on a fire station, or give the City a voice in how the funds are spent. Assistant City Manager Wood added that an agreement between the City and the County requires the tax increment generated from a part of the redevelopment area within the City's boundaries be spent in Newport Beach. Council Member Heffernan asked for a report on the process that would follow the approval of the annexation by LAFCO if a resident of Santa Ana Heights wanted to contest the decision. Assistant City Manager Kiff stated that if 25% or more of the registered voters in the area protest the approval during a specified time period, then the annexation would go to election. If 50% or more of the voters vote no, the annexation is stopped for a minimum of one year. The City Council, at any time, has the ability to pull the application sent to LAFCO. Council Member Glover stated that if people don't want to be a part of Newport Beach, why would the City want them. She stated that it wouldn't be in the best interest of the citizens. Mayor Pro Tern Bromberg stated that if the item is brought back to the City Council, he would be interested in hearing more about the airport issues involved with the annexation. City Manager Bludau stated that until the current meeting, the comments heard from the area have been positive about the annexation. He stated that the objections to the location of a fire station shouldn't necessarily be construed as their objection to being a part of the City. Mayor Pro Tom Bromberg stated that he would expect to hear additional comments from the residents if the item is reagendized. Council Member Adams stated that if no action is taken, the annexation process will continue. He stated that a decision also needs to be made on the Churchill tract. Mayor Pro Tern Bromberg suggested that the item be reagendized as soon as possible. City Manager Bludau stated that possibly the item could be discussed and action taken at a special City Council meeting starting at 4:00 p.m. Council Member Adams opposed the item being discussed prior to the regular meeting time of 7:00 p.m. Council Member Glover stated that the citizens of Newport Beach need to know that they would be subsidizing the annexation of the area. Per Council Member Heffernan's question, Assistant City Manager Kiff stated that the issue regarding the community center is a separate issue involving the expenditure of redevelopment funds and only became tied into the annexation when the City expressed an interest in using part of the funds for a fire station. Council Member Heffernan suggested that if the Volume 55 - Page 99 City of Newport Beach Study Session Minutes April 9, 2002 INDEX item is agendized, it would be a good time to explain the history of the property, who has been providing services for free, how the redevelopment system works and how much money is coming from the Newport Beach portion of the redevelopment area. Council Member Adams additionally suggested that the fiscal analysis for the area be updated and included with the staff report. He stated that it should also retain the contribution of Newport Coast, since the annexation was initiated with that in mind. 5. SKATEBOARDING SIGNAGE IN PARKS. General Services Director Niederhaus stated that the staff report provides an update on what has happened since the City Council approved upgrades to the City's skateboarding regulations in January, 2002. He noted the examples of the new signs that were on display at the current meeting, and stated that they were primarily installed at the entrances to City parks that were affected by the new regulations and areas where there had previously been problems. General Services Director Niederhaus admitted that the installation of some of the signs made it appear that skateboarding was completely prohibited in a park, when only certain areas of the park were affected. He stated that an alternative sign has been developed and addresses six park issues, which include alcoholic beverages, littering, park use hours, graffiti, dogs and skateboarding. Council Member Glover asked if the initial sign of a skateboard figure with a slash through it would still be used. General Services Director Niederhaus stated that the sign would still be used in locations where there is no skateboarding allowed at all. He stated that the alternative sign is specific on what cannot be done in the parks and will allow the Police Department to enforce the new regulations. Council Member Heffernan stated that the new sign should also list that skateboarding is not allowed on the streets. He stated that this would help parents enforce the laws. He thanked staff for responding to his comments of the City Council meeting of March 26, 2002, so quickly. Mayor Pro Tem Bromberg suggested that if there were any extra signs of the skateboard figure with the slash, a few could be placed on the bay fronts on Balboa Island. General Services Director Niederhaus stated that staff is redoing the markings on the sidewalks in that area. Mayor Ridgeway encouraged the use of signage on the sidewalks to avoid sign clutter. PUBLIC COMMENTS —None. ADJOURNMENT — 5:45 p.m. Volume 55 - Page 100 Skateboarding Signagein Parks (85) City of Newport Beach Study Session Minutes April 9, 2002 The agenda for the Study Session was posted on. on the City Hall Bulletin Board located outside Beach Administration Building. City Clerk INDEX pril 3, 2002, at 2:15 p.m. of the City of Newport Recording Secretary `)� Mayor E . -Yz.. Volume 55 - Page 101