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HomeMy WebLinkAbout05/24/2005 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting May 24, 2005 - 7:00 p.m. STUDY SESSION -- 3:30 p.m. INDEX CLOSED SESSION -- None. A. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Rosansky, Ridgeway, Daigle. Nichols, Mayor Bromberg Absent: Webb (excused) C. CLOSED SESSION REPORT - None. D. PLEDGE OF ALLEGIANCE - Council Member Daigle. E. INVOCATION - None. F. PRESENTATIONS Athletic Complex at Estancia High School - Gordon Bowley, Costa Mesa United, reported that they are dedicated to raising the $9.4 million needed to construct an aquatic center at Costa Mesa High School and a multi -use stadium at Estancia High School that would benefit the entire school district. Costa Mesa Council ,Member Foley announced that Costa Mesa has pledged $1 million towards the building of the facilities and $100,000 through Ikea Funds from a development agreement. Mayor Bromberg indicated that this issue is borderless. Introduction of Students Traveling to Okazaki - Dan Hoffman, Newport Beach Sister City Association and Newport - Balboa Rotary member, introduced the chaperone, Timree Gold, and the student delegation (Kelly Clark, Leilani Tanbara, Daniel Ward, and Edward Wiklund) who will be traveling to Okazaki. Butterfly Initiative Proclamation - Mayor Bromberg presented a proclamation to Jaimee Niles who created the Butterfly Initiative which promotes innovative ways to develop capacity, capability, and creativity. State Champion Girls Soccer Team Proclamation - Mayor Bromberg read the proclamation and presented one to each of the AYSO 57 Gator Girls and their coach, Frank Mueller. Proclamations for Outstanding Community Financial Contribution -- Police Chief McDonell reported that Kv Nam donated $50,000 towards the Police Department Lobby Remodel and Police Museum, and Al Cordero contributed all the architectural funding for the project. Mayor Bromberg read the proclamation and presented them to Mr. Nam and Mr. Cordero. Volume 57 - Page 249 City of Newport Beach City Council Minutes May 24, 2005 INDEX Youth Council Presentation - Max Ukropina, Corona del \lar High School student. introduced the other Youth Council members in attendance: Ahlia Kattan, Hanna Dean, Sheina Levine, and Brittany Levine. He utilized a PowerPoint presentation to highlight what Youth Council does. Chuck Jones Day Proclamation - Mayor Bromberg presented Chuck Jones grandson, Craig Kausen, with a proclamation proclaiming June 4, 2005 as "Chuck Jones Day ". Mr. Kausen announced that there will be a celebration at Fashion Island on June 4. Library Foundation Check Presentation - Newport Beach Public Library Foundation President Edwards presented Library Board of Trustees Chairman Hamilton with a $167,000 check. Trustee Hamilton explained what the money will be used for and reported that the Foundation and the Friends of the Library have given over $500,000 this year. G. NOTICE TO THE PUBLIC H. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON- DISCUSSION ITEM: • Mayor Bromberg announced that Governor Schwarzenegger has appointed him to the Orange County Superior Court bench and reported that State law does not allow him to serve on the Newport Beach City Council at the same time. He read his letter of resignation and stated that his resignation will be effective June 17, 2005. • Mayor Bromberg announced that the 12th Annual Balboa Island Parade will be held on June 5 at 11 a.m. He stated that this years theme is "Salute to the Troops ". • Mayor Bromberg announced that the 1/1 Marines will be returning home from Iraq on June 5. He noted that they are the oldest and most decorated Marine unit in United States history. • Mayor Bromberg reported that he spoke to an assembly of 650 young adults at Ensign Middle School during their Character Awards and then attended Newport Harbor High School's "Every 15 Minutes" program with Council Members Ridgeway and Rosansky. • Council Member Rosansky requested a status report at the next meeting regarding the underground utility projects. I. CONSENT CALENDAR Council Member Daigle announced that the 2004 -2005 Traffic Signal Upgrades project (Item 8) will modernize the traffic control signals. She reported that this project will renovate signals on San Joaquin Hills Road and San Miguel Road and at San Joaquin Hills Road and Marguerite. She stated that emergency preemptive systems will be installed at Newport Boulevard and Balboa Boulevard and at San Joaquin Hills Road and Newport Coast Drive. She reported that, through the Capital Improvement Program and using a grant from the Orange County Transportation Authority (OCTA), the City will look at upgrading the Volume 57 - Page 250 City of Newport Beach City Council Minutes May 24. 2005 INDEX signal controllers and adding a traffic operation center. READING OF MIN UTES /ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR :MEETING OF MAY 10, 2005. 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 consideratiom and direct City Clerk to read by title onlc. ORDINANCE FOR INTRODUCTION 3. Removed at the request of Council Member Nichols. ORDINANCE FOR ADOPTION 4. ORDINANCE TO APPROVE AN AMENDMENT TO PERS C -563 CONTRACT TO PROVIDE PRE - RETIREMENT OPTIONAL (38 /100 -2005) SETTLEMENT DEATH BENEFIT TO SAFETY EMPLOYEES. Continue to June 14. 2005. RESOLUTIONS FOR ADOPTION 5. RESOLUTION RELATING TO CODE ENFORCEMENT IN WEST C -3173 SANTA ANA HEIGHTS. 1) Adopt Resolution No. 2005 -28 authorizing (38/100 -2005) the City's Code and Water Quality Enforcement staff to serve the West Santa Ana Heights community for a series of 1 -year renewable terms or until such time as the City annexes West Santa Ana Heights: whichever comes first; and 2) authorize the City Manager to execute a final contract in substantially similar form to the draft Agreement attached to the staff report as Attachment B. G. RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF (100 -2005) SEASHORE DRIVE. NEWPORT BOULEVARD AND BALBOA BOULEVARD, AND SELECTED FEEDER STREETS FOR THE JULY 4TH HOLIDAY. Adopt Resolution No. 2005 -29. CONTRACTS AND AGREEMENTS 7, MESA DRIVE WIDENING PROJECT - APPROVAL. . OF C- 3518(A) PROFESSIONAL SERVICES AGREEMENT WITH CIVIL WORKS (38/100 -2005) ENGINEERS. 1) Approve a Professional Services Agreement with Civil Works Engineers of Costa Mesa for design of widening Mesa Drive at the intersection of Irvine Avenue at a contract price of 864;. 734 and authorize the Mayor and City Clerk to execute the Agreement; and 2) authorize a budget amendment (05BA -062) in the amount of $36,054 from the unappropriated balance of the Circulation & Transportation Fund to Account No. 7261- C5200665. S. 2004 -2005 TRAFFIC SIGNAL UPGRADES - AWARD OF C -3764 CONTRACT (C- 3764). 1) Approve the plans and specifications; 2? award (38/100 -2005) the contract (C -3764) to Inspection Engineering Construction for the total Volume 57 - Page 251 City of Newport Beach City Council Minutes May 24, 2005 bid price of $330,280 and authorize the Mayor and the City Clerk to execute the contract, 3) establish an amount of $33,000 to cover the cost of unforeseen work; and 4) approve a budget amendment (05BA -061) in the amount of 5201.968 from the unappropriated balance of the Transportation and Circulation Fund. 260 -3605, to Account No. 7261- 05200068. 9. Removed at the request of Council Member Rosansky. 10. Removed at the request of Council Member Nichols. MISCELLANEOUS ACTIONS 11. 2005 -06 PROPOSED BUDGET HEARING; 2005 -06 APPROPRIATION LIMIT HEARING. Schedule a public hearing of the City's Proposed Budget and Appropriation Limit for the 2005 -06 fiscal year on June 14, 2005 at 7:00 p.m. and direct the City Clerk to publish a notice of said hearings. 12. PASSIVE PARK IN THE SANTA ANA HEIGHTS REDEVELOPMENT AREA. Approve the concept plan for the passive view park at the intersection of Mesa Drive and Birch Street in Santa Ana Heights: and direct staff to proceed with the preparation of plans and specifications and solicit bids for park construction. 13. BUDGET AMENDMENT TO ACCEPT A CIIECK FROM THE NEWPORT BEACH LIBRARY FOUNDATION AND APPROPRIATE FUNDS FOR MAINTENANCE AND OPERATIONS BUDGET FOR FY 2004/05. Approve a budget amendment (05BA -064) to increase revenue estimates by $166,708 in Account No. 4010 -5893 (NBPL Foundation Donations) and increase expenditure estimates by the same amount in Division 4090, Foundation. 520. LEGAL PUBLICATIONS FOR ONE -FEAR CONTRACT COVERING FISCAL YEAR JULY 1, 2005 TO JUNE 30, 2006. Authorize the City Clerk to publish a notice advertising for bids to be received on or before the hour of 4:00 p.m., on Friday, June 10, 2005 for a one -year contract covering the publishing and printing of legal notices, or other material required to be published and circulated in the City of Newport Beach. Motion by Council Member Ridgewav to approve the Consent Calendar, except for those items removed (3, 9 and 10). The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Webb J. PUBLIC COMMENTS Allan Beek requested that Mayor Bromberg's replacement be decided by election, not appointment. Mayor Bromberg noted that this item is on the Volume 57 - Page 252 INDEX (100 -2005) (100 -2005) (100 -2005) (32/100 -2005) City of Newport Beach City Council Minutes May 24, 2005 agenda as Itcm SU. INDEX Jim Hildreth presented and read portions of documents that are supplemental to what was presented to Council at the last meeting regarding moorings in the Grand Canal. Paul Glowienke expressed hope that some of the $167,000 that was presented today goes toward a potential refurbishment of the Corona del Mar Branch Library. Phillip Bettencourt, Newport Coast Community Association President, stated that the Newport Coast residents are grateful for the recent hem's commercial vehicle inspections on Newport Coast Drive and for the increased presence of motor officers at Newport Coast Elementary School. K. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Ad Hoc General Plan Update Committee (GPUC) — Assistant City Manager Wood reported that GPUC and the General Plan Advisory Committee (GPAC) have looked at the model analyses of the land use alternatives. She stated that.. at the last meeting, GPUC looked more closely at areas where there are significant traffic impacts and what types of land use changes might be causing them so they can refine the land use alternatives. She reported that they also discussed the program for the two public workshops which will be held on Saturday, June 25 at the OASIS Senior Center from 9 a.m. to noon and from 1 p.m. to 4 p.m. Local Coastal Program Certification Committee — Council Member Ridgeway reported that staff has been communicating with Coastal Commission staff to get clarity on what they want changed in the Land Use Plan. Assistant City Manager Wood stated that both sides have agreed to reconsider some of the requests. Mariners Joint Use Library Ad Hoc Steering Conrinittee — Council Member Ridgeway reported that the library is under construction and noted that the steel structure has been erected. City Council/Citizens Ad Hoc Committee for Marina Park Planning — Mayor Bromberg stated that the committee has received a number of presentations and believed that this will come back to Council in a few months. He reported that the committee discussed whether to hire a consultant to do cost analyses on the potential uses, but it was determined not to do that because it's up to Council to hear the potential uses and have studies done if they choose. He noted that the committee is charged with just bringing back alternatives. He announced that the committee meets the third Tuesday at 4 p.m. in the Council Chambers. City Council Ad Hoc Marina Park Advisory Committee — Council Member Ridgeway noted that the issue of the mobile home park was on the agenda at the last meeting, but since that meeting lasted until 1 a.m., the item was continued to the June 14 meeting. Measure M — Mayor Bromberg noted that he appointed Council Member Daigle to speak on behalf of the City regarding :Measure M which is the .05e tax for road improvements. Council Member Daigle noted that Measure M has funded a large Volume 57 - Page 253 City of Newport Beach City Council Minutes May 24, 2005 INDEX number of traffic and roadway improvements for the City. Fourth of July Committee — Council Member Rosansky reported that the annual meeting will be June 6 in the Fire Conference Room at 4 p.m. Zoning Committee — Council Member Rosansky announced that the first meeting will be held on June 2. He stated that they will be looking at zoning in the City in an effort to simplify and streamline the process. Newport Coast Advisory Committee — Council Member Heffernan reported that they meet next on June 6 at the Newport Coast Elementary School. He stated that they are working on the schematic plans and the potential conveyance of land for the community center. He believed that they will also hear about the school issue at Newport Coast Elementary School. Toll Road Committee — Council Member Heffernan indicated that he attended the meeting for Mayor Pro Tem Webb. He stated that the toll road agency will be facing dire financial consequences in two years and will probably be raising the toll fee in July. Finance Committee — Council Member Heffernan stated that Council Members Daigle and Rosansky serve on the committee with him. He indicated that, at this week's meeting, they discussed two potential sewer and fresh water rate hikes and talked about financing options for the Civic Center. Telecommunications Committee — Council Member Heffernan stated that Council Members Daigle and Nichols serve on the committee with him. He reported that the City has 18 cell site applications pending or in process. He indicated that they also discussed the cable franchise agreement and noted that each cable subscriber contract is worth about $3,000. L. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 14. PLANNING COMMISSION AGENDA FOR MAY 19, 2005. Senior Planner Alford reported that the Planning Commission considered an Alcoholic Beverage Outlet (ABO) use permit for the Red Rock Chili Company in Fashion Island and approved it. Senior Planner Alford reported that the St. Andrew's Church expansion project returned to the Planning Commission. He stated that the church requested changes to the parking provision, specifically relative to the off - site parking agreement with the school district. He reported that the Commission voted 5 to 2 to recommend approval to Council. He indicated that this will be brought before. Council soon. Senior Planner Alford stated that the Commission received a presentation from Applied Development Economics (_ADE) on the fiscal impacts of the land use alternatives. In response to Councifs questions regarding the St. Andrew's Church project; Senior Planner Alford stated that the Commission relieved the church of the condition related to the off -site parking agreement with the school district. He indicated that this allows them to pursue onsite and Volume 57 - Page 254 City of Newport Beach City Council Minutes May 24, 2005 off-site parking options. He stated that there were a number of minor revisions to the other conditions. He noted that the Commission expressed their hope that the applicant and the neighborhood would get together and reach a compromise. Mayor Bromberg believed that this will be discussed at a special meeting. Senior Planner Alford indicated that, if the applicant doesn't have an agreement with the school district; they will most likely build a parking structure. Assistant City Manager Wood confirmed that they are still required to have a certain number of parking spaces but it's up to them on how they get it. She stated that there was discussion about possibly having parking further off -site with a shuttle service. She indicated that this wasn't included in the condition because there was concern that, if it was less convenient for the congregation, they would likely park in the neighborhood. Senior Planner Alford noted that Council will receive a full report on the Commission's action and the revised conditions. M. CURRENT BUSINESS 15. EMPLOYMENT AGREEMENT FOR POLICE CHIEF BOB MCDONELL. City Manager Bludau staged that the recommendation is for Council to approve an employment agreement for Police Chief McDonell who intends to retire on July 1. He reported that Council Policy requires that any request for an employee who retires and is considered for reemployment within five years of retirement be approved by Council. He indicated that the Chief intends to retire because of how PERS is set up. He noted that the agreement is for the Chief to stay on for up to two years. He believed that it is essential for the City to retain his services for as long as possible. He reported that this is allowed under the PERS system and has been done elsewhere in the State and County. He stated that the agreement makes the Chiefs employment look much as it does now. He pointed out that, if approved, this agreement would save the City about $26,000 in retirement costs and medical benefits. He indicated that he cannot state strongly enough how much confidence he has in the professionalism, integrity, and management ability of Chief McDonell. He stated that this is a high priority for him. In response to Council questions, City Manager Bludau indicated that the only difference between the terms of the agreement and his current employment is that there will be a financial savings to the City. He stated that, given the number of years he has worked, he is maxed out in the PERS formula and his retirement will not increase. He explained that Chief McDonell will be a retired employee in the PERS system, will be receiving retirement and pay from the City, and the City will not need to pay the PERS contribution anymore. He reported that the City will be contributing some retirement money in an annuity, but it will still be saving $26,000. He confirmed that Chief McDonell cannot draw any more money from PERS because he's maxed out. He stated that it is like hiring him as a private contractor, but in lieu of paying into the PERS system, the City is going to be paying into his private annuity. City Manager Bludau reported that Chief McDonell is allowed to work up to six months per calendar year, but can work more than six months next Volurne 57 - Page 255 INDEX C- 2954(.A) (38/100 -2005) City of Newport Beach City Council Minutes May 24, 2005 year if Council adopts a resolution that is sent to PERS requesting an exemption from the six month limitation. He stated that PERS grants exemptions all the time. Dolores Otting asked how much money will be going into the annuity and how many other people will be taking advantage of this since not many people get to retire with 100% of their salary. Noting that PERS does these exemptions all the time, she suggested changing PERS so the City- doesn't have to go through this. City Manager Bludau stated that the state legislature, not the City, can change the PERS system. He reported that the annuity will be about $45.000. He noted that he intends to be very judicious before any recommendation relative to hiring back a City employee goes to Council. Council Member Heffernan indicated that Governor Schwarzenegger is trying to change the retirement system so people pay into the plan rather than be guaranteed a benefit. Motion by Council Member Ridgeway to approve the proposed employment agreement, by which Chief McDonell would continue to serve as the Newport Beach Police Chief after his official retirement. Council Member Ridgeway stated that it is important for the Chief to continue the continuity at the Police Department. Further, Chief McDonell has a number of intra - agency programs he's involved with that he would like to complete. He indicated that there is no heir - apparent at this time, but one will probably surface during this two year period so there is a smooth transition. He reported that Chief McDonell has saved the City millions of dollars in claims against the City and has brought back integrity and a high level of service to the Police Department. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Ridgeway, Daigle, Mayor Bromberg ':does: None Abstain: Nichols Absent: Webb 16. ADOPT RESOLUTION REGARDING INTERIM FUNDING REIMBURSEMENT AUTHORIZATION FOR PROSPECTIVE CITY HALL COMPLEX AND RESCIND RESOLUTION NO. 2003 -41. Administrative Services Director Danner reported that Council adopted a resolution the last time Council was considering rebuilding City Hall that allowed for the reimbursement of any. expenses incurred prior to the financing recommendation being adopted. He stated that the best guess for the rebuilding cost at that time was $35 million. He reported that, since the project includes a fire station and parking structure, they are recommending that Resolution No. 2003 -41 be rescinded and Council adopt a resolution that has a $50 million maximum amount. He stated that they are not saying that the project will cost $50 million or that they will request reimbursement, but it leaves the options open. Council Member Rosansky noted that Roger Torriero of Griffin Structures said that the total cost would be $41.5 million and asked how they came up with $50 million. Administrative Services Director Danner reported Volume 57 - Page 256 11011W4 (100 -2005) City of Newport Beach City Council Minutes May 24, 2005 INDEX that there are costs involved with issuing a Certificate of Participation (COP). Further, since the City won't have use of the facility while it's being built. there will probably be debt outstanding and the City will be paying capitalized interest and the principal on the COP for a year prior to occupancy. He indicated that on any bond issue, regardless if it is a COP or general obligation lease revenue bond, there's a reserve requirement which is normally equal to the annual debt service. He reported that this monev is held in reserve for the bond or certificate holders and is used to make the last debt service payment. He indicated that the financial consultant estimates that the components mentioned would range from $45,150,000 to $50,000,000. He added that the $50 million also includes an increase in interest rates between now and when the certificates are sold. Council Member Heffernan reported that, at the Finance Committee meeting, he was told by the financial consultant that the rate today for a 30 year bond would be about 4.7% if the City was rated, which equates to about $3 million a year in debt service. He asked if the City has considered future capital expenditures unrelated to City Hall. Administrative Services Director Danner stated that a facilities needs study is one of the top ten priorities for the City. He reported that there is a $2 million reserve for capital improvements which is designed to meet some of the needs of the facilities. He indicated that they are proposing to increase the reserve from $2 million to $10 million in the proposed budget to be adopted in June. He explained that this can be done because the City has not had to use the PERS reserve of $9 million and will be proposing a transfer of $4 million from the PERS reserve into the capital improvement reserve. He added that additional moneys will also come from the current budget. He confirmed for Council Member Heffernan that the City has looked at its capital expenditures on a five and ten year plan, looked at the reserves, and determined that the City has the money to do those things. Further, it's premature to increase this $50 million debt amount to also fund the other projects because they're either already funded or it doesn't make sense to borrow money now to do something so far in the future and pay the interest in between. Council Member Nichols asked if City property has to be dedicated as backing for the COP. Administrative Services Director Danner indicated that this is an option, but the City is not choosing to do that. He reported that this is simply a lease /purchase agreement for the facility itself and is the reason for the capitalized interest. Ile stated that they cannot lease a facility that is not built, so they are proposing to include the interest and principal in the COP for the year that it's under construction. He noted that the facility they're proposing to lease back is the City Hall facility and nothing else. City Manager Bludau reported that the City has an AA rating, but it was discussed at the Finance Committee meeting to have the City obtain insurance to have an AAA rating. He stated that, whether the City pledged properties or not, the COP would be rated AAA. Council Member Heffernan stated that the people who buy the COPS don't see a difference between pledging the COP for the City Hall or towards the credit of the entire City as long as the COP is rated and insured. Administrative Services Director Danner reported that they can bring the City's Volume 57 -Page 257 City of Newport Beach City Council Minutes May 24, 2005 INDE% underlying debt rating from AA to AAA by buying insurance. He stated that the insurance will be less expensive for Newport Beach than other cities that have an A or BBB rating because of its name and good financial standing. He reported that Santa Monica is the only city in the State that he is aware of with an AAA rating. City- Manager Bludau indicated that the City's AA rating puts it in the top 15% to 20 %. He assured everyone that no one will be paying more property tax than what they would be paying without the project. He stated that this would be paid out of revenues that would normally come into the City. Council Member Heffernan explained that a bond, which is a voter issue_ is a line item listed on your property tax bill and a COP is a cost item to the City. Dolores Otting asked when the plan of what needs fixing will be available. She noted that the City's rating is AA -. She expressed concern that $50 million is being discussed which will actually cost about $3.7 million a year. She stated that the City has other indebtedness it pays, which means the City will be paying close to $8 million a year. She hoped that the City would get an appraisal of the current property and consider a third option which relocates City Hall. She asked if the schematics that will be available in September will be complete. She believed that we don't need a new City Hall, especially at this location. She reported that the city hall in Hesperia for $26 million included a library, redevelopment, and commercial. Council Member Ridgeway noted that the City Hall component is $21.5 million and the City's project includes a parking structure and fire station. Mayor Bromberg reported that the City Hall Building Committee dealt with the relocation issue twice, brought it back to Council twice. and finances were not looked at because Council was not interested in relocating City Hall. Paul Glowienke asked how an additional $50 million of indebtedness will impact the City's future credit rating and what levels of efficiencies will occur that allow it to service the debt over 30 years. Mayor Bromberg indicated that his second question is answered in the needs assessment report. City Manager Bludau stated that, if the City makes its payment of $3 million a year, it will probably enhance the City's credit rating because it has had so little debt over the past few years and will gain experience. Jim Hildreth questioned having a new Council Chambers and a community meeting room, unless it was for earthquake purposes. He stated that he has not seen anything regarding keeping documents. Motion by Council Member Ridgeway to adopt Resolution No. 2005 -30 and rescinded Resolution No. 2003 -41. Council Member Nichols asked if this should be considered tonight, believing that Council needs to discuss how the fire station is oriented, talk about issues regarding high rises, and determine whether this is the right location. City Manager Bludau reported that this makes no commitment on whether to move forward. He clarified that this gives Council a reimbursement option through the sale of COPs for any expenses incurred for the project. He stated that the City may not want to do this, but this just gives the City an option. Volume 57 - Page 258 City of Newport Beach City Council Minutes May 24, 2005 Council Member Heffernan noted that he voted against the project and the relocation, but explained that the reason the City is doing this is to have the bond documentation in place to capture the low interest rates. He emphasized that a 1% difference in rates is a huge amount on $50 million and believed that this is a small cost to lock in that rate. He indicated that this is a prudent thing to do since the rates are very low right now. He agreed that this doesn't commit the City to anything. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: IA'ebb 1101118.1 17, REFORESTATION REQUEST HARBOR VIEW HILLS SOUTH (100 -2005) HOMEOWNERS ASSOCIATION. Acting General Services Director Pisani reviewed the staff report and reported that the Harbor View Hills South Homeowners Association's submission met all the requirements of the G -1 Policy. He stated that the policy allows legally established associations to apply for reforestation if they delineate specific tree locations, the board of directors notifies association members and gives them an opportunity to comment on the request before they vote on the request, the association pays all the removal and replanting costs, and they replant designated street trees on a one- for -one basis with the minimum size being 24- inches. He indicated that the Parks, Beaches & Recreation Commission (PB &R) heard this issue on May 3 and the motion failed by a 3 to 3 vote. He stated that some of the Commissioners felt that the association wasn't doing its job enforcing its Covenants. Conditions and Restrictions (CC&Rs) since many private trees were taller than the City trees they were asking to be reforested. Mayor Bromberg indicated that he is unsure why PB &R voted against this since this request is consistent with the G -1 policy. Council Member Nichols stated that this request has gone through all the needed steps, meets the G -1 policy requirements, only deals with 19 trees, and the trees block ocean views. He believed that denying this request tells the community that they cannot make their own decisions. He indicated that Urban Forester Conway believed that this should be approved. He added that the residents have a procedure to handle private trees within the association. In response to Council Member Ridgeway's questions, Acting General Services Director Pisani indicated that the trees will be removed by the tree contractor and will not be saved since they will not be replanted or resold. He believed that the cost to containerize or clam shell the trees would exceed any value the City would get from them. Council Member Ridgeway asked him to research this, but stated that he is supportive of the recommendation. City Manager Bludau noted that the homeowners association pays for any cost involved in cutting down or saving the trees. Volume 57 - Page 259 City of Newport Beach City Council Minutes May 24, 2005 INDEX Yvonne Houssels, President of the Harbor View Hills South Homeowners Association, distributed photos and requested that Council approve the reforestation request since they've complied with all the G -1 policy requirements, as they did for the three previous stages. She noted that they are a view community and the trees to be reforested are impacting views. She indicated that they were surprised when three Commissioners took issue with how they enforce their governing documents and explained that their board attempts to maintain as many trees as possible and does not require trimming or removal of private trees unless they receive a complaint and the tree is investigated by the Tree View Chairperson. She reported that the use of 24 -inch box trees is permitted under the G -.1 policy, especially in the view communities, and noted that the previous stages were approved with 24 -inch box trees. She indicated that staff and the association agree that 36 -inch box trees are too large for the parkway and will most likely cause compacted roots and unhealthy trees. She stated that the wrong trees were planted in the parkway and had to be topped and trimmed extensively. She pointed out that no one from the association is contesting the reforestation. Debra Allen, Parks, Beaches & Recreation Commissioner, distributed a letter from her neighbor and from the Cameo Community Association, and stated that a number of her neighbors, including the President of the Harbor View Hills Community Association, are present to support Harbor View South's application. She stated that it would exponentially increase the cost to view communities to clam shell trees. She reported that, since the contractor will remove the trees for $200 per tree, the associations can conduct large scale reforestations and replant with the designated street tree. She reviewed the process for the associations and expressed the opinion that the City has no business allowing their trees to violate and void the associations' CC &Rs. Tim Brown, Parks, Beaches & Recreation Commissioner, expressed concern that, if this request is denied, the City is not being consistent in its application of public policy. He noted that the other Commissioners did not demonstrate that this request was different than the previous three requests. He expressed his concern for the life of the trees being removed. He stated that prior to discussing this issue, PB &R had an emotional issue and believed that some of that emotion carried over to this issue and had some influence on the vote. Tom Moulson stated that he lives in Harbor View Hills North and expressed his support for the request because view protection is important. Brian Corrigan stated that he moved to his neighborhood because of the views. He noted that a lot of effort went into the G -1 policy and his association works very hard to comply with it. He stated that some of the trees cannot be trimmed down without looking like a nub. He noted that the trees are only trimmed every three years, but his trees will grow and block the view to the ocean within six months. He requested that Council remove the trees since he spoke to his neighbors, they are fine with the request, and he is paying for the reforestation. He believed that the PB &R Commissioners should've contacted him about his trees rather than just make a drive through the neighborhood. Volume 57 - Page 260 City of Newport Beach City Council Minutes May 24, 2005 INDEX Barry Allen stated that he is the Civic Affairs Officer for Harbor View Hills Communitv Association and reported that their association also has language in their CC &Rs regarding view preservation. He indicated that., if there is a complaint about a private tree, there is a process for investigating the situation. lie emphasized that no one wants their view hindered by City trees. IIe expressed his association's support of staffs recommendation since the Harbor View Hills South Homeowners Association met all the G -1 policy requirements, will fund the entire cost for the reforestation, and the PB &R Commissioners who voted against the reforestation are not present to explain or support their position. Lloyd .Krause reported that the current trees are pruned by the City during its cycle but, within a few months. the trees grow back to the same height as before. He discussed photos that showed how quickly the trees grew and believed that the solution is reforestation. Bud Volberding, Harbor Views Hills Community Association President, expressed the association's support of the recommendation and read the letter from the Chairman of the Cameo Reforestation Committee. Allan Beek stated that he. agrees will all the speakers. Harbor N %iew South resident stated that it's hard to explain the dynamics of view sight lines, adding that the sight line may appear different when driving down the street versus seeing the actual view. Be believed that it would be expensive to save the current trees due to their size, the location of the sidewalks and curbs, and the thickness and length of the roots. Further, it may be impossible to safely harvest the trees. He stated that the G -1 policy is a good policy that should be allowed to work. Council Member Ridgeway stated that the subcommittee worked on the current G -1 policy for months and the subcommittee, PB &R Commission, and the City Council voted unanimously to approve it. He agreed that the trees cannot be harvested. He reported that he called the Commissioners who voted against this and was not given a clear reason why they voted the way they did. He questioned why 24 -inch box trees were recommended when 36 -inch box trees would fit in the parkways and asked who pays for the reforestation. Commissioner Allen reported that the applicant can only be the homeowners association; but how the association raises the money to pay the City is up to them. She explained that they didn't require 36 -inch box trees in the view communities because it costs about $1,000 per tree to take out the new tree and put in a 36 -inch box tree versus $200 per tree for a 24 -inch box tree. Further, 36 -inch box trees don't do as well in the five -foot parkways. Council Member Ridgeway stated that he has planted hundreds of trees in his developments and that he is not persuaded by the economic argument. Motion by Council Member Nichols to approve the reforestation request. Council Member Daigle stated that each tree has had so much pruning that they resemble a telephone pole more than a tree. She expressed her hope that what the City will be planting in its place will .look good in ten years and won't grow to the heights that will need extensive pruning. Volume 57 - Page 261 City of Newport Beach City Council Minutes May 24, 2005 Council 'Member Ridgeway stated that he asked the Commissioners to tell him where the G -1 policy says they could vote how they did, lie reported that they couldn't find a section. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Webb 18. INTERIM URGENCY ORDINANCE ESTABLISHING A TEMPORARY MORATORIUM ON THE ESTABLISHMENT AND OPERATION OF MEDICAL MARIJUANA DISPENSARIES. City Attorney Clausen reported that the voters adopted the Compassionate Use Act of 1996 which relieved certain qualified individuals and primary caregivers from State criminal sanctions for using marijuana for medical purposes when the qualified individuals were seriously ill and a medical professional determined that the use of marijuana could help their medical condition. She stated that, since 1996, there have been a few cases published regarding whether someone who was arrested for growing or selling marijuana would qualify as a primary caregiver or qualified individual. She reported that, in the last month, the City has received three inquiries about opening a medical marijuana dispensary or medical marijuana co -op. She stated that, after their investigation, they had questions about whether the concept of medical marijuana dispensaries or medical marijuana co -ops was envisioned by this Act and whether it was legal. She reported that the other issue which is before the Supreme Court is the decision whether Federal law regarding the sale and use of marijuana preempts State law. She noted that this decision hasn't occurred vet. City Attorney Clausen indicated that they are recommending that Council adopt the moratorium to give the City Attorney, Planning, and Police Departments time to look at these types of facilities and determine how they might qualify as a primary caregiver, and to make sure the City generates appropriate regulations and identifications for locations and operations if it is determined that the City needs to regulate them. City Attorney Clausen reported that the urgency ordinance requires a 4/5 vote, more information will be brought back to Council in about 45 days, and then Council may decide to extend the moratorium for an additional 10 months and 15 days which would make it a year. She explained that they may need that much time since there are quite a few legal issues that need to be resolved. Further, they need to determine what the impacts are in order to come up with additional regulations. She explained that the State rules are specific relative to relief of criminal sanctions for primary caregivers and qualified individual; however, State law is not clear that a person can open a dispensary to sell it. She stated that they will need to find out how they operate, how they operate to qualify as a primary caregiver, and then determine the appropriate regulations so there are no land use problems. She noted that these facilities are so new Volume 57 - Page 262 INDEX (100 -2005) City of Newport Beach City Council Minutes May 24, 2005 and the City has only received inquiries, so she is not sure what they would look like. City Attorney Clausen confirmed for Mayor Bromberg that, if someone opened a facility tomorrow and the Supreme Court determined that it wasn't allowed, the facility would close down by operation of law. She explained that they are doing this because there is no authority in the zoning code today for this type of business to open up as a use. Further, there is no identification in State law that authorizes operation. She indicated that it's her opinion and recommendation that they do this, otherwise the City has no regulations and someone can open one of these businesses, start selling marijuana, and the City will be forced to issue some type of business license. She expressed the opinion that the State law is not clearly defined to allow the sale of medical marijuana as a retail use. She emphasized that the only thing the City is proposing to prohibit is the City issuing any type of entitlement or business license to open a marijuana dispensary at this time. Jim Hildreth stated that the voters approved this and the State and City have had plenty of time to figure out what was going on. He indicated that the City already has places that can dispense medication, called drug stores, and he doesn't see what the complaint is. He stated that the people who use marijuana are in pain and use it for medical reasons, and people need to have compassion like the law says. Motion by Council Member Ridgeway to adopt Urgency Ordinance No. 2005 -7 placing a temporary forty -five (45) day moratorium on the establishment and operation of medical marijuana dispensaries. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Ridgeway, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Webb '.Mayor Bromberg recessed the meeting at 9:50 p.m. and reconvened the meeting at 10:05 p.m. with all members of Council present. INDEX 19. TRIP GENERATION AND FISCAL IMPACT ANALYSIS OF THE (100 -2005) GENERAL PLAN UPDATE LAND USE ALTERNATIVES. Woodie Tescher, EIP Associates. stated that Council changed, modified, and made additions to the land use alternatives. He indicated that, as a result of this process, they have been assessing the implications of the alternatives relative to traffic impacts, environmental impacts, and fiscal impacts. He referenced Table 20 in the staff report and stated that it lists the options used in the cumulative Citywide analysis. Doug Svensson, Applied Development Economics (_ADE), utilized a PowerPoint presentation and reported that tonight's analysis does not account for inflation. reflects the annual operating costs and revenues: and does not address the capital improvements that may be required to Volume 57 - Page 263 City of Newport Beach City Council Minutes May 24, 2005 INDEX support the developments. He noted that a fiscal analysis is not a market analysis. He displayed a graph of the relative impacts of various land use categories and highlighted the impacts of visitors to the community. He noted that they're only looking at one aspect of this tonight; however, all the land uses have economic relationships within the City that contribute to the fiscal outcome. He stated that the don't want to discard certain land uses on this basis, but want to build a land use mix that contributes to an overall balance. Mr. Svensson reported that, as the trip generation increases, the fiscal benefit also increases due to development. He added that it is also a function of the land use mix within each alternative. He displayed slides of the alternatives by major subarea. Regarding the "true minimums ", he noted that the Newport Center area has the greatest potential for fiscal benefit, while the West Newport Industrial area counterbalances that with a negative that relates to the expansion of the hospital which is a non- profit organization and doesn't pay property tax. He reported that this alternative includes the option ofleaving Banning Ranch as open space, but noted that the cost of purchasing the land and maintaining it would be substantial and is not included in these charts because the cost is uncertain and may even be an infrastructure cost. For "subareas only minimums ", he pointed out that the airport area plays a stronger role in generating revenue. Be reported that the "maximum" alternative has a strong contribution from the airport area and Newport Center area. Mr. Svensson displayed slides of the individual areas and reviewed the fiscal differences between the existing General Plan and the options. He stated that, for the airport area, the General Plan option has zero impact and the General Plan Advisory Committee (GPAC) options focus on mixed uses that add more commercial development and lodging. He indicated that, in the Balboa Village area. the existing General Plan would have multi - family residential development and the options have different combinations of similar land uses or adds commercial or lodging to the mix. For Banning Ranch, he reported that the existing General Plan allows a substantial amount of development, but because of its location, a lot of the development will be industrial and office uses that don't do well from a fiscal standpoint. He indicated that the options also include open space and a small resort. He stated that, in West Cannery Village, the alternative adds mixed uses. He indicated that the options for East Cannery Village adds commercial or multi -family residential. Regarding Corona del Mar, he stated that the existing General Plan and the options involve expanding the single family housing stock. He reported that, on Lido Isle, the General Plan allows some of the existing units to be replaced with two units. He indicated that, for Lido Village North and South, the existing General Plan doesn't have a great deal of development potential, but the options focus on lodging and commercial. Mr. Svensson reported that the General Plan allows some incremental development of commercial and lodging in Mariners Mile, and the options add mixed use development and marine uses. He stated that, in McFadden Square, the existing General Plan focuses on housing and the options add mixed uses and lodging. Regarding Newport Center/Fashion Island, he indicated that Option 1 focuses on increasing commercial and retail development and adds a substantial amount of lodging. Be stated that Option 2 includes more office space and Option 3 adds more retail, but neither of these have Volume 57 - Page 264 City of Newport Beach City Council Minutes May 24, 2005 the same impact as Option 1. He indicated that, in the 0 ld Newport Boulevard area, the existing General Plan adds single family housing and the options focus on additional medical offices and motel rooms. He noted that the West Newport Highway area already has lodging but the options look at replacing some of that with other development. He indicated that, for the West Newport Industrial area, he took the hospital out of the mix since it's a consistent element. He reported that the existing General Plan and Option 1 focuses on additional industrial development, Option 2 focuses on additional office development: and Option 3 replaces those uses with more housing. In response to Council Member Nichols' questions, Mr. Svensson confirmed that this analysis did not include traffic analysis. Assistant City Manager Wood reported that traffic impacts will be discussed at the next meeting. Allan Beek asked if the fiscal benefit to the City and the fiscal benefit to the land owners could be compared. He also asked that the different relationships associated in the economic and fiscal relationships slide be quantified. Mr. Svensson stated that there will be a higher interest in developing the land uses if the market is strong and the demand is there. He indicated that cities are faced with balancing between meeting market demand and having non - residential economic development. He stated that they do need to look more carefully at the amount of different land uses that they can reasonably expect from the standpoint of what the landowners, developers, etc. want to do. He reported that an economic development strategy will be conducted to focus on what the City can do to improve its job base and to deal with the economic relationships between -residential and non- residential land uses to be sure this balance is maintained over time. INDEX S21. PENDING RESIGNATION OF MAYOR BROMBERG FROM THE (33/100 -2005) CITY COUNCIL AND THE OPTIONS AVAILABLE TO THE CITY COUNCIL FOR FILLING THE VACANCY IN DISTRICT 5. City Clerk Harkless reported that staffs recommendation is to have Council declare District 5 to be vacant as of June 17, 2005, set the deadline for receiving applications and establish an interview date. She noted that, once Mayor Bromberg is sworn in as a judge, he can no longer serve on the City Council. She read City Charter Section 403. She noted that Mayor Bromberg's term does not expire until November 2008; however, according to the Charter, the appointment will serve until November 2006 and then the seat will be on the ballot for the remainder of the two year term. She confirmed that the person can run for a full term in 2008. Council Member Heffernan believed that the Charter allows Council not to appoint someone within the 30 day period and then, by default, an election would have to be conducted. Ile asked how many times in the City's history has Council made appointments. City Attorney Clausen indicated that this has happened very few times. She stated that the Charter requires Council to fill the vacancy by appointment; however, if Council fails to fill the vacancy by appointment in 30 days, then an election is supposed to be called. She noted that the Charter says "shall appoint" and Volume 57 - Page 265 City of Newport Beach City Council Minutes May 24, 2005 INDEX does not give Council the authority to say they do not want to appoint. Allan Beek believed that. since this is the Governor's fault, he should fix it by having a special election at less expense to the City than if the City had to call its own election. Mayor Bromberg noted that this would be violating the City's Charter. Mr. Beek indicated that it wouldn't if there happens to be a 3 -3 vote. He believed that it looks bad when almost half the Council Members are appointed. Mayor Bromberg stated that there is only one appointed Council Member seated. Council Member Rosansky noted that he is an elected Council Member. Dolores Otting stated that this will be the third appointment in 1' /2 years and noted that this person could be on Council for 11' /1 years and probably qualify for a pension. She believed that this doesn't look good and the City needs an election. Jim Hildreth agreed that we're a democracy and should have an election. He noted that there could be a 3 to 3 split and believed that people should prepare themselves for an election. City Clerk Harkless indicated that, with the resignation being effective June 17, the appointment needs to be made on or before July 17. She reported that she can run the legal notices for two consecutive weeks starting Saturday, May 28 and the deadline to turn in applications can be after Saturday, June 4. She indicated that, at the next Council meeting, Council can confirm the parameters for the interviews and set the appointment date: however, there is nothing that prevents Council from setting the interview date tonight. She read the parameters that were established for the previous appointment and confirmed that Council can appoint someone on June 28. Council Member Rosansky noted that this had been done at a special meeting. Council Member Ridgeway reported that there will be three Council Members gone from July 8 to July 20. City Manager Bludau suggested making the appointment so there is a full Council on June 28. Motion by Mayor Bromberg to 1) declare the District 5 Council seat to be vacant as of June 17, 2005; and 2) establish that the process leading to the appointment of a successor as required by Section 403 of the City Charter will be that a) the deadline to turn in applications will be Friday, June 10 at 5:00 p.m., b) the interviews will be conducted in the Council Chambers at a Special Meeting on Tuesday, June 21 at 6:00 p.m., c) the interviews will be televised, d) about 25 minutes will be allotted to each Council candidate for questioning which would include a two minute opening statement and a five minute closing statement by the candidate, e) the order of the interviews will be determined by drawing the names from.a hat, f) the candidates will be sequestered and return to the sequester area after the interview, g) if Council accepts the candidates. Council will appoint by a majority vote of the City Council, swear in, and seat the District 5 Council Member at that time. Council Member Rosansky recommended that the opening statement be five minutes and the closing statement be two minutes. Volume 57 - Page 266 City of Newport Beach City Council Minutes May 24, 2005 Mayor Bromberg amended his motion to change the opening statement to five minutes and the closing statement to two minutes. Regarding the appointment of a new Mayor, Citv Attorney Clauson indicated that; according to the Charter, an election for Mayor would be conducted at the time that the new Council Member is appointed. She confirmed that the Mayor .Pro Tem is a separate position that's been identified to act in the absence of the Mayor, but not identified as someone who automatically takes over for the position since there is no succession in the City. She stated that this will need to be an agendized item either for June 21 or June 28. Mayor Bromberg believed that the Mayor Pro Tem would preside over the meeting until Council elects a new Mayor. Council Member Daigle asked if Mayor Bromberg can participate in the Mayor election on June 14. City Attorney Clauson believed that he couldn't because there is no vacancy and pointed out that the vacancy is in the Council District, not the Mayor seat. She indicated that she has not analyzed whether Mayor Bromberg could resign as Mayor and then participate in the selection of a new Mayor prior to his official resignation date. Mayor Bromberg requested that she look into this. Without objection, Council Member Rosansky suggested that this be brought back at the June 14 Council meeting so the City Attorney can research some of these issues. He added that the Mayor should be elected at the June 28 meeting. Mayor Bromberg amended his motion to include direction for staff to bring back a staff report at the June 14 Council meeting that outlines the process for replacing the Mayor. The amended motion carried by the following roll call vote: Oyes: Heffernan, Rosansky; Ridgeway, Daigle: Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Webb Noting that it was after 11 p.m., Council Member Rosansky recommended and received no objection to proceed with the Consent Calendar. N. ITEMS REMOVED FROM THE CONSENT CALENDAR 3. RESOLUTION CERTIFYING FINAL EIR, RESOLUTION APPROVING GENERAL PLAN AMENDMENT NO. 2004 -004, USE PERMIT NO. 2004 -026, MODIFICATION PERMIT NO. 2005 -030 AND TRAFFIC STUDY NO. 2004 -003; AND ORDINANCE r)LDOPTING PLANNED COMMUNITY TEXT AMENDMENT NO. 2004 -003 FOR NEWPORT LEXUS AUTOMOBILE DEALERSHIP (PA 2004 -153) - 3901, 3931, 3961 MACARTHUR BOULEVARD AND 848 AND 888 DOVER STREET. Council Member Ridgeway announced that he will be recusing himself on this item and left the Council Chambers for the remainder of the meeting. Volume 57 - Page 267 IVIODM (100 -2005) City of Newport Beach City Council Minutes May 24, 2005 INDEX Council Member Nichols stated that there was discussion but no findings that the traffic allowed in and out of MacArthur Boulevard was appropriate or safe. He noted that the text was changed to allow a 55 foot parking structure which is also the prominent structure viewed from the street. Casey Griffin, applicant, reported that the parking structure is 35 feet. He noted that the element coming above the structure that makes it 55 feet houses the elevator shaft and is the same height as the tower element at the corner shopping center. He added that it is 60 feet lower than the building directly across the street. Council Member Nichols asked Mr. Griffin if he could live with the 35 and 55 feet height restrictions because he intends to ask that this be put into the zoning code rather than have the ability at a later date to build the structure to 55 feet with a 70 foot elevator shaft. City Attorney Clauson noted that these issues have already been decided and approved by Council at the last meeting. She stated that the documents were already approved by motion, this is not a reconsideration of the item, and is just a request for technical documentation to approve the resolution certifying the Environmental Impact Report (EIR) and introduce the ordinance that adopts the PC Text. She clarified that. although the ordinance was included, discussed, and approved at the last meeting, this is the time to make changes to it, otherwise it would need to be reintroduced at the next meeting. Council Member Heffernan noted that commercial uses were not allowed over the entire parcel. Contract Planner Lepo confirmed that this is to change the use designation so Lexus can sell cars on the entire parcel versus only part of the parcel. Assistant City Manager Wood pointed out that one of the sites had no height limit. Contract Planner Lepo stated that there is no height limit in the General Plan for the three acres that is currently designated auto center. He noted that the north portion of the parcel has an eight story height limit which means that the project is significantly lower. Contract Planner Lepo confirmed for Council Member Rosansky that Lexus will need to come before the Planning Commission if they wanted to add more floors to the parking structure. He assured everyone that they do not have the right to add more floors, even though it's within the height limitation. Dolores Otting referenced page 25 of the staff report and asked if ingress and egress is still allowed on MacArthur Boulevard. Council Member Rosansky reported that the decision was to include a condition that the building permit would not be issued until the ingress and egress was reviewed by the Traffic Engineer. Assistant City Manager Wood noted that this is Condition No. 28. Council Member Heffernan stated that he spoke to the applicant, the Public Works Director, and the Traffic Engineer and reported that he is convinced that this issue will be carefully looked at before a building permit is issued. Motion by Council Member Heffernan to 1) clarify the City Council action of May 10, 2005, approving the Newport Lexus project, and Volume 57 - Page 268 City of Newport Beach City Council Minutes May 24, 2005 certification of the FIR, by adoption of Resolution No. 2005 -26 certifying the Final EIR and Resolution No. 2005 -27, as amended, approving General Plan Amendment No. 2004 -004. Use Permit No. 2004 -026. Modification Permit No. 2005 -030, and Traffic Study No. 2004 -003: and 2) clarify City Council action of May 10, 2005 approving Planned Community Text Amendment No. 2004 -003 for the project by introduction of Ordinance No. 2005 -8, read by title only and waive further reading, and pass to second reading on June 14, 2005. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Daigle, Mayor Bromberg Noes: Nichols Abstain: None Absent: Webb INDEX 9. SUNSET RIDGE PARK: APPROVAL OF GROUND LEASE, C- 3743(A) BUDGET AMENDMENT, AND ESCROW INSTRUCTIONS. (381100 -2005) Assistant. City Manager Kiff utilized a PowerPoint presentation and reported that, pursuant to Proposition 3, the California Constitution allows land in the Coastal Zone to be transferred at its acquisition price. He reported that SB124 was passed which allowed the City to buy the land at $1.3 million. He explained that CalTrans would transfer the land to the State Parks and Recreation Department and then the City would lease it from them. He reported that the zoning is PC Text which allows 15 units per acre, but six acres must be a neighborhood or view park. He displayed the timeline and confirmed that part of the bill included a stipulation that the City had to develop a park on the site within five years; so the City would've spent a lot more money than the acquisition price. Assistant City Manager Kiff reported that Council Member Rosansky was aggressive in pushing staff to work with the State Parks and Recreation Department on the ground lease in September 2004. He indicated that, during that time. Senator Campbell introduced SB306 which would allow the City to have a 25 -year lease rather than just a 10 -year lease. However, at the same time, the State and Consumer Services Agency instructed the Parks and Recreation Department staff to stop working on the City's ground lease and transfer of jurisdiction documents, and introduced AB54 to try to repeal SB124. He stated that Mayor Bromberg sent a letter opposing AB54 and the City Manager sent a letter to the Secretary of the State and Consumer Services Agency asking them to expedite SB124. He reported that AB54 passed the State Assembly, but still needs to pass the State Senate. He indicated that the City would have performed everything it needed to in order to comply with SB124 if' Council approves the ground lease and sets up the escrow account tonight. He stated that the City will then go to the State, possibly with a letter from the City Attorney, to request that they perform what they need to do. Assistant City Manager Kiff emphasized that AB54 is not law and cannot become. law until January 1, 2006. He stated that staff feels it would be great to purchase Sunset Ridge Park directly rather than leasing it, but the price is important. He reported that they are also working on Volume 57 - Page 269 City of Newport Beach City Council Minutes May 24, 2005 aggressively opposing AB54, unless it is amended to remove references to Sunset Ridge Park. He stated that the Little League and AYSO will be contacting the Governor. Further, the City continues to work with Senator Campbell and Assemblyman Tran. He provided the public with information on how to contact the Governor, Senator Campbell, and Assemblvman Tran. In response to Council Member Heffernan s questions, Assistant City Manager Kiff reported that, when he and Council Member Rosansky were in Sacramento last week, the State believed that the property was worth between $10 million and 518 million. He emphasized that a deal is a deal and, by law, the State is directed to transfer this land at $1.3 million. City Attorney Clauson confirmed that the bill allowed the City to lease Sunset Ridge Park from the State after the City paid the money. She pointed out that the State Parks and Recreation Department has already agreed to the lease. Council Member Nichols received clarification from Assistant Citv Manager Kiff that the recommendation does not approve an $18 million price tag or open discussions for this amount. Motion by Council Member Rosansky to 1) authorize the City Manager or the Mayor to execute a Ground Lease with the California Department of Parks and Recreation for the Sunset Ridge Park property at Superior and Pacific Coast Highway in a form and substance substantially similar to the Draft Ground Lease; 2) approve a budget amendment (05BA -063) allocating $676,458 (in addition to the $680,000 already budgeted) to pay California State Parks to take title to the property per the terms of Senate Bill 124 (Johnson 2001); 3) authorize the City to open and administer an escrow account to cause the Sunset Ridge Park property to transfer from Caltrans to State Parks according to the provisions of SB 124; and 4) in the event that State officials offer a direct sale of the Sunset Ridge Park property (including Director's Deeds #040766 -01 -01 and #040766- 01 -02) to the City, authorize the City Manager to negotiate with Caltrans on a direct sale. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Webb, Ridgeway INDEX 10. BACK BAY SCIENCE CENTER - AMENDMENT NO. 2 TO C- 3481(F) PROFESSIONAL SERVICES AGREEMENT WITH GAIL P. (38 /100 -2005) PICKART. In response to Council Member Nichols' concerns, Assistant City Manager Kiff clarified that the Resource Agencies have tentatively agreed to leave the Newport Aquatic Center (NAC) alone. He stated that they believe they're on the right path in helping the NAC keep its beach. He pointed out that the Resources Agencies that are dealing with the NAC have nothing to do with the Back Bay Science Center. Volume 57 - Page 270 City of Newport Beach City Council Minutes May 24, 2005 Motion by Council Member Rosanskv to approve Amendment No 2 to the Professional Services Agreement with Gail P. Pickart, P.E. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Daigle, Nichols, Mayor Bromberg Noes: None Abstain: None Absent: Webb, Ridgeway O. MOTION FOR RECONSIDERATION - None. P. ADJOURNMENT - 11:42 p.m. The agenda for the Regular Meeting was posted on May 18, 2005, at 3:00 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on May 20, 2005, at 2:30 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary City Clerk Volume 57 - Page 271 INDEX City of Newport Beach City Council Minutes May 24, 2005 INDEX THIS PAGE LEFT BLANK INTENTIONALLY Volume 57 - Page 272