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HomeMy WebLinkAbout01/14/2003 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session January 14, 2003- 4:00 p.m. ROLL CALL INDEX Present: Heffernan, Proctor, Ridgeway, Nichols, Mayor Bromberg, Webb (arrived at 4:55 p.m.) Absent: Adams (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan announced that he would be pulling Item Nos. 11, 12 and 14 at the evening meeting. Regarding Item No. 10, Per Capita Grant Program Allocation, City Manager Bludau confirmed for Mayor Pro Tern Ridgeway that the grant is a reimbursable grant. Mayor Pro Tem Ridgeway additionally asked for a clarification on Item No. 9, Request for Funding for Proposed Underground Assessment District No. 99. He asked for an explanation of the requirements of Proposition 218 and how the ballots are weighted by financial obligation. Public Works Director Badum stated that Proposition 218 requires the City to send ballots to all affected property owners and conduct a protest hearing. If the majority of the ballots received are in favor of the assessment district, the City levies the assessments and forms the district. He noted that the cost is parceled out according to benefit. Per Council Member Nichols' question, Assistant City Manager Wood stated that Item No. 8, Review and Approval of Contract Renewal with LDM Associates for Administration of the Community Development Block Grant Program, does not involve Mariners Mile. Council Member Nichols asked for an overview of what is included in the Mariners Village Improvement Project, Item No. 7. Public Works Director Badum stated that the project is the first phase of what may be multiple phases of a concept for Mariners Mile that was previously approved by the City Council. He stated that it might include new street trees and furniture, but does not include a relocation of the curb lanes. Additionally, Public Works Director Badum explained that traffic calming was a part of the original concept due to the concern of nearby residents about the speed of traffic on Riverside Avenue. Council Member Nichols expressed his concern that the Big Canyon Creek Restoration Project, Item No. 6, might be too extensive. Mayor Bromberg suggested having a discussion on the matter at the evening meeting. Assistant City Manager Kiff additionally pointed out that it would be the topic of the next Volume 55 - Page 543 City of Newport Beach Study Session Minutes January 14, 2003 2. item at the current meeting. Council Member Nichols asked if the improvements to Jamboree Road included in the 2002 -2003 Combined Transportation Funding Program Application, Item No. 3, included a flyover. City Manager Bludau stated that it does not, but that it does include additional lanes on the existing bridge. Public Works Director Badum added that the proposed project would actually replace the need for a flyover, and that additional exhibits would be available prior to the evening meeting that would help to clarify the issue. UPPER NEWPORT BAY RESTORATION PROJECTS. Using PowerPoint, Assistant City Manager Kiff pointed out that he would be making a presentation on two Upper Newport Bay projects, the Big Canyon Restoration Project and the West Bay Boardwalk and Restoration Project. He stated that the Big Canyon project would address the areas within Big Canyon Nature Park, which receives urban runoff from approximately two square miles. He stated that the project would address a number of concerns. Assistant City Manager Mff introduced Brian Shelton with the California Department Fish and Game, and Esther Feldman and Andy Carey from Community Conservancy International. Assistant City Manager Kiff displayed two aerial photos showing the urban runoff flows into Big Canyon Creek and the drainage basin. He additionally displayed photos showing some of the damage and erosion caused by the runoff, and the structures that have been built to carry the runoff. Additional photos showed deposited dredging spoils and exotic species that should not appear in the area. Assistant City Manager Kiff stated that the State Coastal Conservancy is planning to fund $167,000 of the Big Canyon project, with another $10,000 coming from the Newport Bay Naturalists and Friends, and $17,000 from Community Conservancy International. Assistant City Manager Kiff stated that Item No. 6, Big Canyon Restoration Project, of the evening meeting would be recommending the City Council's approval of $110,000 for the project's planning and technical studies. He noted that the City is also expecting to receive $4 million from the Wildlife Conservation Board and Propositions 40 and 50 for the construction of the project. In response to City Manager Bludau's question, Assistant City Manager Kiff stated that the City's contribution would come from revenue that has been set aside from the Beacon Bay leases, which is required to be applied to habitat improvements in Upper Newport Bay. Council Member Nichols stated that the Big Canyon area is overgrown, appears to be a fire hazard and doesn't have adequate public access. Ms. Feldman stated that the project will address the overgrowth and look at a comprehensive public access component. In response to City Manager's Bludau question, Ms. Feldman stated that the planning process will take approximately one year and will result in several alternatives for how to restore a marine -type influence into Big Canyon Creek. She noted that three 15 -inch pipes provide the only drainage for the area. Council Member Nichols stated that flooding doesn't appear to be a problem. Assistant City Manager Kiff stated that there was some flooding in 1998 and 1999. Volume 55 - Page 544 INDEX Upper Newport Bay Restoration Projects (51) City of Newport Beach Study Session Minutes January 14, 2003 INDEX Mayor Pro Tem Ridgeway asked if other funds were available for the upper watershed storm drain system, noting that it would be considered a capital improvement project and not an environmental project. Assistant City Manager Kiff stated that it was hoped that the restoration project could be combined with the storm drain project with money from the Wildlife Conservation Board. Assistant City Manager Kiff displayed two aerial photos showing the area of the West Bay project. He specifically pointed out trails that the public should not be using due to the damage it causes to the habitat. He stated that the project would install two miles of elevated boardwalks and trails, public access points and viewing platforms. Mayor Pro Tem Ridgeway stated that there's a bluff about fifteen feet above the water level and another higher one closer to Irvine Avenue. He asked for a clarification as to which bluff the trails would be placed on. Assistant City Manager Kiff showed the different bluffs on the aerial photo and stated that Ms. Feldman might be able to answer the question later in the presentation. Assistant City Manager Kiff continued with his presentation by listing some of the goals of the project. He also displayed information on how the project is expected to be funded. The County's share of the American Trader Oil Spill money is expected to fund the research, site analysis and schematic design phases of the project, which will cost approximately $378,000. Assistant City Manager Kiff stated that the Wildlife Conservation Board, through Propositions 40 and 50, is also expected to fund the construction phase of this project, which is expected to total approximately $3 million. He noted that staff members from the Wildlife Conservation Board have visited the areas of both of the projects and have told the City that they will support them. City Manager Kiff expressed his confidence that the two projects will receive priority due to the fact that the areas fall within California Department of Fish and Game property. Lastly, he listed the project partners and proponents, and some web sites where more information could be obtained. Council Member Nichols stated that the Delhi Channel is not a part of Upper Newport Bay, nor is it reserved for habitat. He suggested that the west side of the channel be used for baseball fields instead. Assistant City Manager Kiff stated that the area is a part of the County's regional park, which is set aside for habitat and passive uses. He added that although the area under discussion might not be an actual part of the bay, it is important wetlands and marshlands in the State's Upper Newport Bay ecological reserve system. Council Member Nichols stated that the area has little water and has already been accessed by the public in the past. Ms. Feldman noted that the aerial photo was taken at extreme low tide. Mr. Shelton stated that the area represents 10% of the State's remaining wetlands. He explained that an area doesn't necessarily have to hold water year round to be designated as a wetland. It may be only seasonably wet. He additionally noted that the Upper Newport Bay area houses seven endangered species and a wide variety of habitat, which acts as a complete system. Mr. Shelton stated that the surrounding areas are considered upland areas, which have different characteristics. He noted that the upland areas of Upper Newport Bay do house breeding birds and endangered species, but that there would be more if the human intrusion were less. Volume 55 - Page 545 City of Newport Beach Study Session Minutes January 14, 2003 INDEX Council Member Proctor called for point of order and noted that the Study Session item before the City Council was to discuss the boardwalk. Mr. Shelton concluded his comments by stating that the majority of the boardwalk is not proposed on the Delhi Channel, but would encompass more of the bluff. Mayor Piro Tem Ridgeway asked for a more specific description of where the proposed boardwalk would be located. He noted that people are attracted to the water's edge, so if the boardwalk were on a high bluff, an opportunity might be missed. He suggested that a second boardwalk be considered, if necessary. Ms. Feldman stated that Mayor Pro Tem Ridgeway's comments reflect the problems trying to be addressed with the project. She stated that the proposed boardwalk will be down by the water where suitable. She stated that the project will also deal with the proximity issue of humans and wildlife. Mayor Pro Tem Ridgeway stated that Back Bay Drive and it's proximity to habitat should provide some evidence of the effect of humans on wildlife. Jack Keating, Newport Bay Naturalists and Friends President, stated that the Newport Bay Naturalists and Friends organization is trying to continue the legacy of the Friends of Newport Bay and the efforts of Frank and Francis Robinson. He thanked the many supporters of the two projects. City Manager Bludau asked who would maintain the boardwalks after construction. Assistant City Manager Kiff stated that an agreement would need to be reached since the areas cross City, County and State property lines. Mayor Pro Tem Ridgeway stated that an e-mail was received earlier in the day by the council members. He confirmed that Assistant City Manager Kiff had seen it and asked how he'd respond. Assistant City Manager Kiff stated that the citizen had asked how a boardwalk could contain people. He stated that it could if it gets people close enough to the water, and an education and interpretation program is a part of it. Mr. Shelton stated that he also read the e -mail, but stated that many of the citizen's concerns were based on misinformation. He contacted the individual, and they both came to the agreement that a balance between recreation by the public and needs of the wildlife can be effectively reached. Council Member Nichols asked how equestrian use would be affected by the project. Assistant City Manager Kiff stated that the area is currently accessible for equestrian use and would continue to be accessible on designated trails, but not on the newly proposed boardwalks. Assistant City Manager Kiff introduced Tom Rossmiller, the City's new Harbor Resources Manager. Mayor Bromberg welcomed Harbor Resources Manager Rossmiller to the City. Harbor Resources Manager Rossmiller stated that he worked for the County for nearly thirty years, developing their water quality monitoring program and working on a variety of projects along the coast. He stated that he was also the project manager for the Upper Newport Bay ecosystem restoration project and has worked on several sand replenishment projects. Volume 55 - Page 546 City of Newport Beach Study Session Minutes January 14, 2003 Recessed at 4:55 p.m. and reconvened at 5:00 p.m. with all members present except Council Member Adams. 3. REVIEW OF AFFORDABLE SENIOR HOUSING DEVELOPMENT AT LOWER BAYVIEW LANDING AND VIEW PARK DEVELOPMENT AT UPPER BAYVIEW LANDING. Assistant City Manager Wood stated that staff and the Affordable Housing Task Force have been working with The Irvine Company and The Related Companies to put together a project for senior affordable housing at the Lower Bayview Landing site. She noted the preliminary plans on display and the 150 units proposed for the affordable housing project. She stated that the units would be available to those 55 years of age or older. She stated that The Irvine Company is providing the site, as well as a grant to The Related Companies in the amount of $250,000. Assistant City Manager Wood noted that the project will require funding from a number of sources in order for it to be Financially feasible. She stated that the developer is planning to use tax exempt bonds from the State, as well as tax credits. In addition, a tentative agreement has been reached for the City to provide a loan of $1 million, which would come from the City's affordable housing in -lieu fund. Assistant City Manager Wood stated that if the Coastal Commission approves the project by the summer of 2003 and the State approves the financing by the end of 2003, the project would not be subject to a new State requirement to pay prevailing wages for projects that are assisted with public funds, which would cause an increase to the overall cost of the project and the City's contribution. She stated that a staff report for the loan agreement is expected to be before the City Council at their meeting of January 28, 2003. Assistant City Manager Wood stated that the Lower Bayview Landing project is closely related to the Upper Bayview Landing view park development. She stated that it would be beneficial to have the two projects done cooperatively. Mayor Bromberg stated that the Affordable Housing Task Force has been working on the project for quite some time. He noted that he and Mayor Pro Tern Ridgeway serve on the task force and that they have been working closely with The Related Companies. Council Member Heffernan asked what the City's current deficit for affordable housing is. Assistant City Manager Wood stated that prior to the Newport Coast annexation, the City's goal was to have approximately 250 low and moderate income units and another 250 units that would be at market rate. She stated that with the annexation, the goal increased by 200 units in the affordable category. Council Member Heffernan confirmed that the City is approximately 450 units short of its goal. He additionally asked how the amount owed by a developer for affordable housing in -lieu fees is determined. Assistant City Manager Wood stated that the in -lieu fees for the One Ford Road project were handled through the development agreement, and the fees for Sail House were set at the same rate plus a Consumer Price Index (CPI) inflation rate. She added that the new housing element of the general plan will include a more formal in -lieu program. In response to Council Member Heffernan's questions, Assistant City Manager Wood stated that there are two planned communities in the Newport Coast area that were developed under the County's jurisdiction. She stated that each has an affordable housing implementation Volume 55 - Page 547 INDEX Affordable Senior Housing Development (68) City of Newport Beach Study Session Minutes January 14, 2003 110110.1 plan, and that those goals will be incorporated into the City's new housing element. Mayor Pro Tem Ridgeway stated that the City's proportionate share of the region's housing is established through the Southern California Association of Governments (SCAG) and the State Department of Housing and Community Development (HCD). He stated that the regional housing needs assessment establishes the City's share of housing for both market rate and affordable housing in the Southern California region. Mayor Pro Tem Ridgeway stated that the Upper Bayview Landing project makes a significant dent in the affordable housing component. Council Member Proctor asked for more information about the prevailing wages issue mentioned earlier in the meeting, and how affordable housing is kept affordable once it is developed. In regard to keeping affordable housing affordable, Assistant City Manager Wood stated that the City would require a covenant to require that the units remain affordable for the income level they were designed for and for the period of time designated. In regard to the prevailing wages issue, she stated that new State legislation subjects any project that is funded with public money to pay prevailing wages, with a one year exception for affordable housing projects. She stated that it was determined that this would increase the project's cost by approximately $500,000. Mayor Pro Tem Ridgeway stated that Senate Bill 975 (SB 975) was effective a year ago and exempted affordable housing projects for two years. He added that the legislation was supported by the unions to insure that they would receive prevailing wages. He stated that there are discussions in Sacramento about this being an anti- housing bill, which could result in affordable housing being exempt. Council Member Nichols stated that he calculated the additional cost to be approximately $700,000 and asked if this shouldn't be paid by the developer instead of the City. Assistant City Manager stated that the money that will be used is from the City's in -lieu affordable housing fund, which is money received from previous developers in -lieu of developing affordable housing. She stated that this requires the City to use the money for affordable housing projects. Council Member Nichols asked if there was enough money in the fund to pay for the proposed project. Assistant City Manager Wood stated that the fund currently totals approximately $2.5 million and that staff will recommend that the City Council approve a loan in the amount of $1 million, to possibly increase to $1.5 million if the prevailing wages have to be paid. She added that if additional money is needed, negotiations would take place and City Council approval would be needed if the City's contribution were to increase. Council Member Webb asked how much the City is contributing by waiving the planning and fair share fees. Assistant City Manager Wood pointed out that the municipal code requires the City to waive the fair share fees for affordable housing projects but, per the City's housing element, the waiver of the planning development review fees can be decided upon by the City Council. Associate Planner Trimble stated that the amount of both waivers represents approximately $235,000. Council Member Webb confirmed with Assistant City Manager Wood that the building closest to Coast Highway in the Upper Volume 55 - Page 548 City of Newport Beach Study Session Minutes January 14, 2003 INDEX Bayview Landing project is proposed to be three stories. Gino Canori, The Related Companies, stated that he is the project manager and the proposal is for three -story buildings with two -story elements at the front and rear of each of the buildings. In response to Mayor Bromberg's question, Mr. Canori stated that there would be no mechanical equipment on the roofs. In response to Council Member Webb's question, Mr. Canori stated that the height of the midpoint of the roofline is proposed to be 65 feet above sea level, or 35 feet above finished grade. Council Member Webb expressed his concern that views would be lost through the central portion of the project. Mr. Canori stated that the roof pitch would not impact any view corridor from Coast Highway or Villa Point. He added that they are in the process of putting together a view simulation. Council Member Webb expressed his concern about the grading that is proposed. He stated that story poles would be important to show the view impacts. Mayor Pro Tem Ridgeway stated that it might be premature for story poles, since the project still needs to be reviewed by the Planning Commission and the Coastal Commission. He stated that view studies will be included, that the plans may change and that the developer is well aware of the concerns for maintaining the views. Val Skoro, Parks, Beaches & Recreation (PB &R) Commissioner, stated that the PB &R Commission has been involved for several years with the transformation of Upper Bayview Landing into a park. He stated that there have been three concepts, but they'd like the opportunity to review the current proposal. Mr. Skoro suggested that the plans and appropriate personnel be available at the next meeting of the Park Development Subcommittee on January 21, 2003. City Manager Bludau confirmed that staff would be available at the meeting. Mr. Gennary further confirmed that staff from The Related Companies would also be present. Mayor Bromberg directed staff to continue moving forward on the project. He stated his support for the City being in compliance with the requirements for affordable housing. Mayor Pro Tem Ridgeway stressed the importance of having the financing approved by the end of 2003. He suggested that a precise site plan be included with the January 28, 2003, staff report. Assistant City Manager Wood added that the park project will need to move forward as quickly as the housing project to take advantage of concurrent processing with the Coastal Commission. PUBLIC COMMENTS — None. ADJOURNMENT — at 5:30 p.m. to Closed Session to discuss two real estate items, one dealing with 3600 East Coast Highway and the other with the Balboa Bay Club. Volume 55 - Page 549 City of Newport Beach Study Session Minutes January 14, 2003 The agenda for the Study Session was posted on January 8, 2003, at 4:00 p.xn. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary R O Volume 55 - Page 550 INDEX