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HomeMy WebLinkAbout06/28/2005 - Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Regular Meeting (Special Meeting) June 28, 2005 - 6:00 p.m. STUDY SESSION - 3:00 p.m CLOSED SESSION - 5:00 p.m. xxxxxxxxxxxxxxxxxxx A. RECESSED AND RECONVENED AT 6.00 P.M. FOR REGULAR MEETING (SPECIAL MEETING) B. ROLL CALL Present: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Absent: Nichols (excused) C. CLOSED SESSION REPORT - None. D. PLEDGE OF ALLEGIANCE - Council Member Daigle. E. INVOCATION - Pastor Greg Tonjes, Mariners Church F. PRESENTATIONS Proclamation for Roger Summers - Mayor Heffernan read the proclamation that highlights Roger Summers' community involvement and presented it to him. Mr. Summers stated that he owes it all to his wife and family. Parks & Recreation Month Proclamation - Mayor Heffernan proclaimed July as "Recreation and Parks Month" in the City and presented it to Tyler Carlin and John Byerlein who participate in the intergenerational sailing program between the KidScene After School Program and the OASIS Senior Center Sailing Club. Recreation and Senior Services Director Knight stated that the summer season started yesterday and they served 300,000 people. Proclamation for Newport Beach Breakers - General Manager of the Newport Beach Breakers, Jim Haley, reported that they are the only professional sports team in Newport Beach. He announced that they will be giving a free tennis clinic on July 2 at the San Joaquin Hills Tennis Court and that all participants will be getting a free tennis racket from Advanta. Mayor Heffernan read the proclamation which designated July 2 as "Newport Breakers Free Clinic Day" and presented it to Mr. Haley. July 4th Preparations - Police Chief McDonell announced that they begin delivering letters to the residents tonight. He reported that every police officer works during July 4th, along with about 60 outside law enforcement personnel, which totals over 200 officers. He noted that there are street closures in the safety enhancement zone and any violation of the municipal code in that zone is tripled. Volume 57 - Page 321 INDEX City of Newport Beach City Council Minutes June 28, 2005 INDEX He reported that the street closure will be in effect from 1 p.m. to 11 p.m. and the Seashore Drive fencing will be up. He stated that they made about 108 arrests and wrote over 700 citations in a 36 hour period last year. City Manager Bludau reported that the City spends about $150,000 for this holiday. Council Member Rosansky applauded the efforts of the Police Department and indicated that the residents in his district are very happy with the result the last three years. Council Member Rosansky announced that Huntington Beach will be having fireworks on July 4th. Mayor Heffernan announced that the Dunes will be having fireworks at 9 p.m. 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): Council Member Rosansky announced that he and Assistant City Manager Kiff appeared before the Senate Committee and successfully presented their case regarding Sunset Ridge Park. He announced that the Committee unanimously approved the bill, but deleted the reference about the Sunset Ridge Park parcel. He thanked the residents and organizations who sent letters in support of the park and thanked Assistant City Manager Kiff for his help. • Mayor Pro Tem Webb announced that there will be a 4t6 of July parade at Mariners Park, starting at 10 a.m. • Council Member Rosansky announced that Newport Shores also has a 4th of July parade, but it starts at 9 a.m. • Council Member Daigle announced that the first concert for Concerts in the Park will be on July 17 at Eastbluff. She stated that the Pacific Symphony Orchestra will be performing. • Mayor Heffernan reported that the tsunami warning system will be discussed at a future study session. I. CONSENT CALENDAR READING OF MINUTESiORDINANCES AND RESOLUTIONS 1. MINUTES OF THE SPECIAL MEETING AND REGULAR MEETING OF JUNE 14, 2005. Waive reading of subject minutes, approve as written and order filed. (Council Member Selich abstained on this item) 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. Volume 57 - Page 322 0 City of Newport Beach City Council Minutes June 28, 2005 ORDINANCE FOR ADOPTION 3. VEHICLE CODE ENFORCEMENT WITHIN ONE FORD ROAD. Adopt Ordinance No. 2005 -10 authorizing application of California Vehicle Code to Private Roads in the One Ford Road Community. RESOLUTION FOR ADOPTION 4. ADOPT RESOLUTION DESIGNATING AN AUTHORIZED CITY REPRESENTATIVE TO FILE AN APPLICATION FOR AN INTEGRATED REGIONAL WATER MANAGEMENT IMPLEMENTATION GRANT. Adopt Resolution No. 2005 -35 authorizing the Public Works Director to file an application for an Integrated Regional Water Management Implementation grant. CONTRACTS AND AGREEMENTS 5. BACK BAY SCIENCE CENTER — AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH RON YEO, FAIA (C- 3481). Approve Amendment No. 1 to the Professional Services Agreement with Ron Yeo, FAIA, Architect, Inc. for the Back Bay Science Center. 6. NEWPORT HEIGHTS, CLIFFHAVEN, SEAWIND AND PACIFIC VIEW STREET REHABILITATION AND SOUTHBOUND MACARTHUR BOULEVARD MEDIAN MODIFICATIONS — AWARD OF CONTRACT (C- 3677). 1) Determine that the project is exempt from environmental review pursuant to Section 15302 of the California Environmental Quality Act; 2) approve the plans and specifications; 3) award the contract (C -3677) to All American Asphalt, Inc. for the total bid price of $1,574,574 and authorize the Mayor and the City Clerk to execute the contract; 4) establish an amount of $100,426 to cover the cost of unforeseen work; and 5) approve a budget amendment (05BA -071) transferring $20,000 from Gas Tax, Account No. 7181- C5100063, $60,000 from Gas Tax, Account No. 7181- C5100070, and $322,000 from Gas Tax Unappropriated Fund Balance 180 -3605 to account 7181- C5100782. 7. BONITA SPORTS PARK STORAGE BUILDINGS — REJECT ALL BIDS FOR CONTRACT (C- 3683). 1) Approve the plans and specifications; and 2) reject all bids for contract (C- 3683). 8. WATER PIPELINE MASTER PLAN — REPLACEMENT SEASHORE DRIVE — COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3644). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 9. SEWER AND STORM DRAIN REPLACEMENT — COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3645). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Volume 57 - Page 323 INDEX (100 -2005) (100 -2005) C -3481 (38/100 -2005) C -3677 (38/100 -2005) C -3683 (38/100 -2005) C -3644 (38/100 -2005) C -3645 (38/100 -2005) City of Newport Beach City Council Minutes June 28, 2005 Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 10. 2003 -2004 CITYWIDE SLURRY SEAL PROGRAM - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3647). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 11. 2004 -2005 ALLEY REPLACEMENT PROGRAM - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3630). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 12. 32ND STREET TIDE VALVE REPLACEMENT - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3667). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 13. NEWPORT COAST ELEMENTARY SCHOOL (NCES) LOOP ROAD LANDSCAPE AND IRRIGATION - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3731). 1) Accept the work; 2) authorize the City Clerk to file a Notice of Completion; 3) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code; and 4) release the Faithful Performance Bond one (1) year after Council acceptance. 14. AMENDMENT TO AGREEMENT WITH TRUGREEN LANDCARE FOR MAINTENANCE OF BONITA CANYON SPORTS PARK (C- 3616). Approve Amendment No. 1 to the Agreement with TruGreen LandCare, L.L.C., increasing compensation paid to the contractor to $164,337.60 per year, and removing the contractor's right to cancel the agreement without cause prior to the expiration of the agreement. 15. LEGAL ADVERTISING BID FOR FISCAL YEAR 2005 -2006. Accept the bid of the Daily Pilot and authorize a purchase order for the one -year period of fiscal year 2005 -2006. 16. GEOTECHNICAL, SURVEYING AND MAPPING, ARCHEOLOGICAL, INSPECTION AND ENVIRONMENTAL PLANNING /PERMITTING ON -CALL SERVICES - APPROVAL OF PROFESSIONAL SERVICES AGREEMENTS (C- 3673). 1) Approve Professional Services Agreements with Harrington Geotechnical and Volume 57 - Page 324 INDEX C -3647 (38/100 -2005) C -3630 (38/100 -2005) C -3667 (38/100 -2005) C -3731 (38/100 -2005) C -3616 (38/100 -2005) (32/100 -2005) C -3673 (381100 -2005) 0 10 • E Pi City of Newport Beach City Council Minutes June 28, 2005 Leighton and Associates for on -call geotechnical services and authorize the Mayor and City Clerk to execute the agreements; 2) approve Professional Services Agreements with Coast Surveying, Advance Survey Concepts, and Walden & Associates for on -call professional surveying and mapping services and authorize the Mayor and the City Clerk to execute the agreements; 3) approve a Professional Services Agreement with LSA and Associates for on -call archeological services and authorize the Mayor and City Clerk to execute the agreement; 4) approve a Professional Services Agreement with Project Partners for on -call supplemental public works inspection services and authorize the Mayor and City Clerk to execute the agreements; and 5) approve a Professional Services Agreement with J.H. Douglas & Associates for on -call environmental planning and permitting assistance and authorize the Mayor and City Clerk to execute the agreements. MISCELLANEOUS ACTIONS 17. REPORT DESCRIBING THE MEASURES TAKEN TO ALLEVIATE THE CONDITIONS WHICH LED TO THE ADOPTION OF INTERIM URGENCY ORDINANCE NO. 2005 -7 REGULATING MEDICAL MARIJUANA DISPENSARIES. Receive and file the report. 18. BUDGET AMENDMENT TO TRANSFER FUNDS FROM THE LITERACY SPECIAL PURPOSE ACCOUNT TO APPROPRIATE ACCOUNTS FOR LITERACY SERVICES. Approve a budget amendment (05BA -069) for Literacy Services in the amount of $9,000. 19. BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE NEWPORT BEACH LIBRARY (NBPL) FOUNDATION AND APPROPRIATE FUNDS FOR MAINTENANCE AND OPERATIONS BUDGET FOR FY2004 -05. Approve a budget amendment (05BA -070) to increase revenue estimates by $20,000 in Account No. 4090 -5893 (NBPL Foundation Donations) and increase expenditure estimates by the same amount in Division 4090, Foundation. 20. MEASURE M ELIGIBILITY RE- QUALIFICATION FOR FY2005- 2006. 1) Adopt the Seven -Year Capital Improvement Program; and 2) direct staff to submit the adopted Capital Improvement Program, updated Pavement Management Program (PMP), and Maintenance of Effort certification to the Orange County Transportation Authority to satisfy the eligibility provisions for the Measure M and the Congestion Management Programs. 21. APPOINTMENT TO ENVIRONMENTAL QUALITY AFFAIRS COMMITTEE (EQAC). Confirm Mayor Heffernan's appointment of Adam Boettner to the District 7 at -large seat on EQAC. Council Member Daigle announced that the City is moving forward to get the Back Bay Science Center project implemented (Item No. 5). Motion by Mayor Pro Tern Webb to approve the Consent Calendar, and noting the abstention by Council Member Selich on Item No. 1. Volume 57 - Page 325 INDEX (100 -2005) (100 -2005) (100 -2005) (100 -2005) (100 -2005) City of Newport Beach City Council Minutes June 28, 2005 INDEX The motion carried by the following roll call vote: Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols J. PUBLIC HEARING — Since this was noticed for 7 p.m., Council proceeded with the agenda until this item could be heard. K. PUBLIC COMMENTS —None. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Ad Hoc General Plan Update Committee (GPUC) — Council Member Rosansky stated that GPUC has had no meetings; however, last Saturday, there were two General Plan Update Forums at the OASIS Senior Center in which 150 people attended the morning session and 100 attended the afternoon session. He indicated that, following the consultant speaking, the participants broke into small groups to discuss the alternatives for the different areas in the City. Local Coastal Program Certification Committee — Council Member Ridgeway reported that they met yesterday and are working on the Coastal Commission staffs comments to the Land Use Plan. He stated that their next meeting will be on June 30 at 3 p.m. in the Fire Conference Room. Newport Coast Advisory Committee — Mayor Heffernan reported that story poles have been installed at San Joaquin Hills Road and Newport Coast Drive. He announced that their next meeting will be on July 11 at 5:30 p.m. in the small conference room at the Newport Beach Central Library. Mariners Joint Use Library Ad Hoc Steering Committee — Mayor Pro Tem Webb announced that the tennis court concrete has been poured, the steel work is complete, and they are starting to work on the walls. He believed that the library will be complete in about nine months. City Centennial 2006 Committee — Mayor Pro Tem Webb reported that the Rose Parade Float was unveiled last Tuesday at Rogers Garden. He announced that they are looking for sponsors and noted that eight to ten people can ride on the float for a $25,000 per rider sponsorship. He stated that the "Let's Do Launch" party will be held on October 2 at the Dunes. He announced that the Beach Boys will be performing the last 90 minutes of the day. City Council Ad Hoc Marina Park Advisory Committee — Council Member Ridgeway announced that Council took action at the last Council meeting to direct staff to move forward with the proper documentation to close Marina Park. City Council/Citizens Ad Hoc Committee for Marina Park Planning — Council Member Ridgeway stated that the next meeting on July 19 at 4 p.m. in the Council Chambers will probably be the last chance for anyone to make a presentation to the committee. He indicated that people can call Assistant City Manager Kiff to put their presentation on the agenda. Volume 57 - Page 326 u 0 City of Newport Beach City Council Minutes June 28, 2005 Building Ad Hoc Committee — Council Member Ridgeway reported that they meet every two weeks with the City Manager to discuss the progress of the drawings, the space planning, and the location of the building. He anticipated that this will come before Council in September. Mayor Heffernan announced that he will be making Council Member Ridgeway the Chairman of this committee since City Hall is in his district. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 23. PLANNING COMMISSION AGENDA FOR JUNE 23, 2005. Planning Director Temple reported that they only acted on the minutes and continued the other two items on the agenda. She stated that, after the meeting, the Commission made presentations to Council Member Selich to thank him for his ten years on the Planning Commission. Council Member Ridgeway reported that former Planning Commissioner Michael Kranzley flew in from Wesley, Massachusetts, and former Planning Commissioner Ann Gifford flew in from Santa Fe, New Mexico, to reminisce about Council Member Selicb's leadership. N. CONTINUED BUSINESS 24. 2005 -06 BUDGET ADOPTION. City Manager Bludau reported that Council has been meeting during three study sessions to review the budget which totals about $189 million. He indicated that Council needs to look at the supplemental budget and checklist items, and decide which ones they want to include in this year's budget. He pointed out that the supplemental budget items total $2,048,694, but noted that this is not all general fund money. He clarified that general fund money totals about $384,201, but reported that the Mariners Library component of $195,000 should be added which makes the general fund total $580,000. He pointed out that there is a $650,000 ceiling that Council is requested to not exceed. He noted that there are a number of Capital Improvement Program rebudgets. He reported that the staff report includes a proposed resolution, summary of operating budgets, and a list of funds which are recommended for certain expenditures. He stated that the total budget with transfer -outs is $191.8 million, the total budget is $186.9 million, the capital improvement budget is $36.1 million, and the operating budget is $150.7 million. In response to Council Member Ridgeway's questions, Public Works Director Badum confirmed that all the rebudgets for Balboa Village are in the budget, even though they're not on the rebudget list. He stated that those projects were included in the preliminary program that was submitted to Council because they knew the projects would need to be rebudgeted. He clarified that the rebudget list includes projects that they've only recently become aware weren't going to happen in a timely manner before the end of the fiscal year. Council Member Ridgeway reported that some of the Harbor Commissioners called him about the Rhine Channel Wharf Public Dock and noted that it's not in the budget. He requested that $60,000 be Volume 57 - Page 327 INDEX (100 -2005) (100 -2005) City of Newport Beach City Council Minutes June 28, 2005 110113 D1:� budgeted, noting that the total budget item is $125,000, but 52% of that could come from a Department of Boating and Waterways grant. He stated that the 100 foot dock is out of the area where the loading and unloading occurs or where the crane is. Public Works Director Badum believed that this project didn't make the budget this time because, while there is discussion about getting a grant, they have not been successful in getting it. However, if they did receive the grant, it would've changed the project's priority. Regarding Council Member Rosansky's question about the production of Your Newport Today, City Manager Bludau noted this show has been budgeted ever since he has been with the City. Council Member Rosansky requested clarification regarding the $225,000 expenditure for the relocation of the Newport Coast ballfield to add parking. Mayor Heffernan indicated that this is the tradeoff in order to get the extra parking for the community center. He added that, in exchange for having the community center and parking area conveyed to the City when it is completed, the City is going to rebuild the ballfield so there are still two ballfields at the park. He confirmed that this is in addition to the $7 million. Public Works Director Badum reported that there was discussion about deleting the library site to provide a greater amount of parking; however, the Newport Coast Advisory Committee (NCAC) came up with this alternative. Council Member Rosansky pointed out that the additional row of parking is not on the original site which means that the footprint has been expanded. Council Member Ridgeway reported that the entire park area has an Irrevocable Offer of Dedication to the City, so the fields become City property when it exercises that right. City Attorney Clauson clarified that the City is working with the NCAC and has looked at either accepting the Irrevocable Offer of Dedication for the entire site but leasing back the ballfields and the rest of the park to the community association, or only accepting the Offer for the area that the City needs for the community center. She indicated that she was given direction to work on the latter. Mayor Heffernan reported that the annexation agreement provided that, if the City took the property, the association would be given a long term lease of the property and only pay $1 a year for 50 years. Further, if the community center was built, then that portion and the parking lot would become City property. City Attorney Clauson added that the annexation agreement said that the City would build the community center and that portion of the park, and then lease back the rest of the property to the community association. She stated that an alternative to this would be to not accept the whole property. Council Member Rosansky reported that Council never approved the project to move forward with the additional parking, even though he thinks the solution is a great idea. City Manager Bludau consumed that the City is paying the $225,000. Mayor Pro Tern Webb stated that the Public Works Director needs to work with the person who made the estimates to provide a replacement facility that is equivalent, but done economically. Public Works Director Badum noted that the cost for curb and gutter, and additional paving is also included in this amount. Council Member Rosansky pointed out that the City is paying more than $7 million and that Council is setting a precedent by exceeding the figure. Volume 57 - Page 328 0 City of Newport Beach City Council Minutes June 28, 2005 . Mayor Heffernan noted that the NCAC only wanted 98 spaces but Council wanted more. Further, NCAC didn't want parking in that corner, so this compromise was worked out. Council took a straw vote on the $225,000 expenditure with Mayor Pro Tem Webb, Council Member Ridgeway, Council Member Rosansky, Council Member Daigle, and Mayor Heffernan voting in favor. Council Member Daigle noted that she requested an audited financial statement of the Santa Ana Heights Redevelopment Fund. She also asked if the Newport Coast Community Center project could come back. Mayor Heffernan noted that it was their understanding that this was going to be the solution, so the architect is generating working drawings to get permits. Council Member Rosansky requested that staff prepare a report for Council regarding what was agreed to, what the history of the project is, and if there's other alternatives relative to accepting the dedication. City Attorney Clauson clarified that accepting the dedication has not occurred yet and reported that she is still in the process of looking at the documents. Mayor Pro Tem Webb noted that the Newport Beach Restaurant Association is requesting an additional $35,000. City Manager Bludau confirmed that this is in addition to funds already set aside and is for a concerted marketing effort. City Manager Bludau noted that the Conference and Visitors Bureau (CVB) doesn't work with them on co- branding. He added that there is a Restaurant Business Improvement District (BID) and the City contributes matching funds to them and the other BIDS. Program Manager Trimble explained that all the matching funds for the BIDs comes from their contributions to business license fees. He indicated that there is precedence for doing this type of expenditure with other BIDs. He reported that they intend to use the $35,000 for a re- branding effort to update their website, print materials, logos, and marketing materials. Council Member Daigle stated that she supports the restaurants' re- branding effort. She noted that, on July 26, Council will be looking at the CVB budget and noted that they get a percentage of Transient Occupancy Tax (TOT). She requested that the City look into what other marketing that amount could be used for. Council Member Rosansky stated that he would support this request if it were a one -time thing. City Manager Bludau suggested that, for next year, the Finance Committee review the community requests, have a face -to -face with them, and then make recommendations to Council. Mayor Heffernan asked about the Mariners Library possible demolition budget item. Mayor Pro Tem Webb reported that there is currently no money in the budget for tearing down the old library building. He stated that this needs to be torn down before park reconstruction. Council Member Ridgeway reiterated that he would like $60,000 for the Rhine Channel Wharf Public Dock and, if the City doesn't receive matching funds, this money could be carried over. Mayor Pro Tem Webb recommended that Council approve what is shown on the checklist, plus this project. Council Member Selich also supported the dock because it Volume 57 - Page 329 INDEX City of Newport Beach City Council Minutes June 28, 2005 falls along with the deficiencies identified in the Harbor Element. He noted that a lot of the money that the Department of Boating and Waterways has generated through fuel taxes comes from the boaters in Newport Beach and that the City should get back its share of the taxes. City Manager Bludau reported that the Newport Coast Elementary Loop Road rebudget of $352,000 can be eliminated from the list because the money has already been spent and the work is complete. In response to Council Member Selich's question, Public Works Director Badum indicated that the Corona del Mar Beach Improvements are listed as two separate funds because it is funded by oil spill and grant moneys. Motion by Council Member Ridgeway to 1) approve the budget checklist and rebudgets to be included in the 2005 -06 budget; and 2) adopt Resolution No. 2005 -37 approving the City's 2005 -06 Budget, as amended by any approved budget checklist items. The motion carried by the following roll call vote Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols Council Member Selich noted that, even though he was not on Council when the budget was first discussed, he was in the audience and heard the discussion. J. PUBLIC HEARING [discussed after 7 p.m ] 22. BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT RENEWAL: CONDUCT PUBLIC HEARING AND ADOPT RESOLUTION FOR RENEWAL OF THE BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2005. Program Manager Trimble reported that this is the second hearing for the Balboa Village Business Improvement District renewal and they have received no letters of protest to date. He stated that this resolution will confirm the resolution that was approved two weeks ago which levies the assessments for the 2005 -2006 fiscal year. Mayor Heffernan opened the public hearing. Motion by Council Member Ridgeway to adopt Resolution No. 2005 -36 confirming the levy of the BID assessment for the 2005 -2006 fiscal year since the protests represented less than 50 percent of the total assessment amount. Hearing no testimony, Mayor Heffernan closed the public hearing. The motion carried by the following roll call vote: Volume 57 - Page 330 INDEX (100 -2005) E is City of Newport Beach City Council Minutes June 28, 2005 Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols N. CONTINUED BUSINESS [continued] 25. CODE AMENDMENT NO. 2005 -001 AMENDING TITLE 19 OF THE MUNICIPAL CODE RELATED TO PARKING STANDARDS FOR CONDOMINIUM CONVERSIONS (PA 2005 -015) ( contd. from 5/10/05 & 6/14/05). City Clerk Harkless clarified that the ordinance will be passed to second reading at the next meeting. Council Member Rosansky recused himself because he owns several properties that may be affected. Council Member Ridgeway recused himself because of a possible conflict of interest. Associate Planner Murillo reviewed the staff report, stating that it was determined at the November 9, 2004 Council meeting that the desired effects of the 1994 update to the condominium conversion standards may not have been achieved and Council directed staff to return with potential changes to the minimum parking standards. He reported that Option 1 increases the minimum parking standards for condo conversions to is conform to today's current standards, Option 2 increases the minimum parking standards to two spaces per unit, Option 3 increases the minimum parking standards to 1.5 spaces per unit, and Option 4 maintains the current standards which allows the same number of spaces that were required at the time of original construction, as long as a minimum of one space per unit is provided. He stated that, based on the analysis and to reduce the risk of preserving the older non - conforming housing stock, staff is recommending that Council either adopt Option 1 or Option 2. He indicated that either option will prevent the conversion of units built prior to 1989 if the structures were constructed with the minimum parking standards in effect at that time. However, Option 1 still allows the conversion of smaller projects (duplexes and triplexes) which may meet the current parking standards today, but nearly eliminates the conversion opportunities for larger apartments since few have been built since 1989 and few provide more than 2 spaces per unit. He noted that Option 2 will facilitate the conversion of larger apartments by allowing conversions when at least a minimum of two spaces per unit are provided. Associate Planner Murillo reported that the original proposed ordinance did not include a grandfather clause delaying the effective date of the ordinance to accommodate applications which may currently be under preparation, so staff recommends that the effective date of the adopted ordinance be 60 days after the date of second reading and that any application deemed complete by the effective date be allowed to proceed under the existing rules in effect prior to the amendment. Associate Planner Murillo stated that staff received three letters and comments from the public related to this amendment. He indicated that Volume 57 - Page 331 INDEX (100 -2005) City of Newport Beach City Council Minutes June 28, 2005 MRINW7 local developer, Barry Saywitz, expressed concern that the data in the November staff report was inaccurate regarding the number of units that were approved for conversion since 1995. He reported that they reviewed the data for accuracy and concluded that it is accurate; however, confusion could've occurred because the data only showed converted units that completed the conversion process and are recognized by the County Tax Assessor as a condominium unit. He stated that, in an effort to provide a different approach to the analysis, staff tallied and mapped the geographical locations of all condo conversion applications that were submitted to the City since 1995. He indicated that staff concluded that the geographical distribution of conversion applications is similar to the prior analysis. In response to Mayor Pro Tem Webb's questions, Associate Planner Murillo confirmed that the current standard is 1.5 spaces per unit unless in Corona del Mar or the Coastal Zone. However, triplexes and larger apartment buildings have guest parking requirements. He stated that this ordinance would apply only to conversions. Council Member Selich reported that the Planning Commission did not review condo conversions for duplexes because those went through the Modifications Committee and only came before the Commission if they were appealed. He stated that the project that brought this to light was a seven unit condo conversion on Bayside and Marguerite because the Commission was concerned about only providing seven parking spaces and its impact on street parking. He indicated that they brought this to Council's attention and Council elected to initiate this code amendment. He noted that he contacted all the coastal cities in the County to see how they handle this situation, and reported that all the cities have small lots and similar ages of housing stock. He stated that all of the cities require that condo conversions meet the parking standards in effect at the time of conversion. He pointed out that the zoning code has a large section about non - conforming uses and one of the goals of the zoning code is to eventually bring non - conforming uses into conformance. He noted that the duplexes that are under - parked are non - conforming uses and, if the City allows condo conversions without requiring that they meet current parking standards, then it is perpetuating the continuation of non- conforming uses. Council Member Daigle stated that the City doesn't know if the standards in other communities are relaxed. She expressed concern about affordability and that going to two spaces means they'd have to clear a lot. She stated that she doesn't advocate two spaces, but could probably support 1.5 spaces. She indicated that the City needs to be sensitive to the people with projects already in the pipe. Assistant City Manager Wood stated that the City originally eased up the requirements on condo conversions in the hopes of providing more homeownership opportunities. Associate Planner Murillo stated that they looked at converted units that are recognized by the County as a condominium and used the assumption that, if the site address matches the owner's mailing address, it's an owner - occupied unit, otherwise it's a rental unit. He reported that staff concluded that, of the converted units Volume 57 - Page 332 City of Newport Beach City Council Minutes June 28, 2005 since 1995, 61% are owner- occupied and 39% are renter- occupied. He stated that they compared that to the owner - occupancy rate for all duplexes throughout the City and found that 43% are owner- occupied. Regarding the affordability issue, Council Member Selich noted that the converted units are selling for $800,000 to $1 million. He stated that there are different ways of measuring affordability, but he's not sure if this provides more affordable housing than if it stayed a rental unit. He noted that it may be easier for someone to qualify for a $2,000 or $2,500 rental unit rather than qualify to buy an $800,000+ piece of property. Council Member Daigle stated that affordability means creating ownership opportunities and believed that this was part of the original intent of this. Mayor Heffernan indicated that rents haven't skyrocketed and this is why rental affordability is more reachable than ownership. Joy Brenner stated that she has two charming duplexes in Corona del Mar, has three people in each of them, one unit has two spaces, and the other has four spaces. She believed that more people might live there if they were sold as condos and possibly even more if she bulldozed them and built them to the maximum. However, she would like the option to leave them as is and do a slight conversion to maintain their character. She noted that she doesn't object to bulldozing properties if they're dilapidated, but she doesn't want the City to do anything that's going to encourage people to bulldoze and build to the maximum so old Corona del Mar isn't lost any faster than it has to be. Assistant City Manager Wood reported that, if a property doesn't meet the property standard that Council sets, the property owner would have the option to retain it as a duplex and rent out one unit, or they would need to redevelop the property if they wanted a condominium if there was no way to provide the additional parking. Barry Saywitz took issue with staffs analysis, believing that it doesn't mean someone doesn't live at a location just because the mailing address doesn't match the title on the home since the person could have a second home or mail their bills to their work. He stated that almost all the properties he has converted into condos have been owner- occupied and are currently owner - occupied. He agreed that the prices for the condos have gone up over the years and it doesn't pencil out to make them rentals and lose money. He stated that his letter notes that there was a 50% reduction in the number of people in the units when it was a rental versus when it was converted to a condo, and added that there was also a reduction in the number of cars. He believed that this amendment precludes some of the mid -aged properties with existing two car garages from ever being converted to anything other than its present use. Scott Dalton presented a letter from a Corona del Mar resident who is in favor of keeping things as it is, offers solutions to the parking issues, and doesn't want this amendment passed. He noted that condo conversions were initially allowed to encourage ownership in West Newport and, initially there were more conversions in Corona del Mar than West Newport; however, that has shifted and now the City's policies are working. He indicated that the seven unit building is an anomaly and Volume 57 - Page 333 INDEX City of Newport Beach City Council Minutes June 28, 2005 INDEX suggested limiting the larger buildings. He agreed that there are less occupants in the units after the conversion. Further, the aesthetics has improved and the buildings have been brought up to code. He asked whether the 111 units that have been converted to condos are considered new construction or remodels. He requested more time and studies before the policies are changed. Laura Curran stated that she does not believe that this proposal will change the level of street parking by residents or visitors in neighborhoods that have single family or multi - family units. She indicated that there was still ample parking this morning even when 40 cars were parked on a flower street and 20 to 30 cars were parked on the school streets. She believed that staff needs to look at parking policies and how they affect parking behavior. She agreed that owner - occupied or converted condos have fewer residents. She believed that, if owners cannot convert their existing units to condos, they're more likely to keep them as rentals. Further, a permit parking policy might encourage landlords to rent to fewer people. She asked how many parking spaces would be added to each area if all rental units were rebuilt as conforming spaces. She stated that this policy also changes the value of duplexes that could be converted. She requested that existing owners have the opportunity to be grandfathered with the current policy until the property is sold or allow them one year to submit a conversion application. She encouraged staff to put out more notice about this because she only found out about it by reading the minutes. Marilyn Gill indicated that she found out about this issue when she called to get a condo conversion package and believed there should've been a mailing to everyone in Corona del Mar. She stated that she was planning to fund her retirement by converting her property to a condo and then selling one unit. She requested an extension of the effective date from 60 to 90 days from the date of adoption of the ordinance. BJ Johnson expressed concern that notices weren't sent to Corona del Mar since this would affect their pocket book and a lot of people are planning to convert their properties. She stated that this would change the aesthetics of their village and suggested that this be postponed. She reported that, of the 37 condo sales that were done on the flower streets since December, five of those would not meet the proposed requirements. Jim Hildreth believed that this amendment tells people that their property is worthless to be resold as is. He noted that there are parking issues on Balboa Island and the Peninsula, but isn't sure if there are complaints in Corona del Mar. He stated that there may be a reason to have allowances for certain areas in Newport Beach in the interim. He recommended grandfathering these in but not allow them to do any type of remodel down the road unless they conform to the new standards. Alexander Bronna expressed his opposition to the amendment and believed that the parking issues in Corona del Mar have little to do with homeownership. He stated that there is a midrange of properties that could be cost effectively converted to preserve some of the character of the area, rather than tearing them down. He believed that the amendment is Volume 57 - Page 334 0 11 City of Newport Beach City Council Minutes June 28, 2005 • counterproductive and ineffective in terms of dealing with parking issues. Further, he believed that condo conversions and the individual sale of R -1 properties after the conversions will reduce the density and population in Corona del Mar. Council Member Selich stated that there are a lot of people who purchase these duplexes with certain expectations. He indicated that he could support having this go into effect after one year and that he is in favor of Option 1. Associate Planner Murillo reported that the current standard for duplexes is 1.5 spaces per unit everywhere except in Corona del Mar and the Coastal Zone. He noted that these duplexes make up about 95% of the duplexes in the City. Council Member Selich indicated that there is a problem with the parking standards not being equitable and believed that the parking standards in the zoning code should be amended. He added that the condo conversion standards should be consistent with the parking standards. Council Member Daigle stated that the data concludes that conversions mean less people and cars, but noted that there is no data on parking and how much will be generated. Further, it's questionable if this will put a dent in the parking problem. She stated that she sees this ordinance as a tear down ordinance which will change the community aesthetics and make them larger as they get developed. She believed that this is a good ordinance to spur discussions about parking issues, but not be a • mechanism to resolve them. She indicated that she could possibly support 1.5 spaces per unit, but not 2 spaces. City Attorney Clausen clarified that the proposed 60 day period extension relates to any application that is in process. She received confirmation from Council Member Selich that the one year extension means that a condo conversion permit would have to be issued within the year. She reported that pursuant to the City's Charter, in order to enact an ordinance, four votes are needed. Motion by Council Member Selich to approve Code Amendment No. 2005 -001 by introducing Ordinance No. 2005 -12 amending the Condominium Conversion Regulations of Title 19 of the Municipal Code to increase the minimum required parking standard to the current standards with an effective date of the ordinance to be one year after the date of its adoption, and that any condominium conversion applications deemed complete by the effective date be allowed to proceed under the existing regulations in effect prior to this amendment; and pass to second reading on July 26, 2005. Mayor Pro Tem Webb asked, if the City changed the parking requirement for condominiums to two spaces per unit, does this ordinance need to be modified. City Attorney Clauson indicated that, since the ordinance references current standards, that is what they would follow. Further, this action clarifies the existing code because they've just been using the standard that was in effect when the building was built. • Council Member Daigle suggested that there be 1.5 spaces per unit across the board. Assistant City Manager Wood stated that the City is able to do Volume 57 - Page 335 INDEX City of Newport Beach City Council Minutes June 28, 2005 condo conversions without meeting the current parking standards and that only new construction is required to meet the higher number. She confirmed that a condo conversion does not qualify as new construction, so the City's existing ordinance which allows a lower number of parking spaces is used. Mayor Pro Tem Webb emphasized that the vote today is to make the standards for new construction and condo conversions the same. Council Member Selich stated that the concerns that the Commission had were related to the larger buildings and offered as a compromise to have this ordinance only apply to triplexes or larger units. He indicated that the duplexes can stay as they are and possibly have the Commission look at the parking standards so there is rationality as to how it's applied. Council Member Selich amended his motion to approve Code Amendment No. 2005 -001 by introducing Ordinance No. 2005 -12 amending the Condominium Conversion Regulations of Title 19 of the Municipal Code to increase the minimum required parking standard to the current standards for projects that are three units or larger with an effective date of the ordinance to be one year after the date of its adoption, and that any condominium conversion applications deemed complete by the effective date be allowed to proceed under the existing regulations in effect prior to this amendment; and pass to second reading on July 26, 2005. Council Member Selich amended his motion to change the effective date of the ordinance to be 90 days after the date of its adoption to have any condominium conversion application deemed complete. Council Member Selich explained that most of the comments he has received are from duplex owners. He said that there aren't that many triplexes and four - plexes. Mayor Pro Tem Webb added that the unit that was approved because there was no other way to handle it should've provided 17 parking spaces instead of 7. The amended motion carried by the following roll call vote: Ayes: Selich, Webb, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols Council Member Selich suggested sending the issue of duplexes back to the Commission. Mayor Pro Tem Webb asked if consistency between the Coastal Zone and Corona del Mar areas and the rest of the City can be looked at so there is one parking requirement for duplexes and condo conversions. He indicated that this can be included in the Zoning Code Update. 26. NAMING OF PARK LOCATED BEHIND THE NEWPORT BEACH CENTRAL LIBRARY (contd. from 6/14/05). Recreation and Senior Services Knight reported that they received 425 suggestions for the name of this park which were forwarded to the Parks Volume 57 - Page 336 INDEX (100 -2005) \_J u City of Newport Beach City Council Minutes June 28, 2005 • Development Committee, a subcommittee of the Parks, Beaches & Recreation Commission (PB &R). She stated that the committee narrowed the list to three and forwarded it to PB &R who is forwarding them to Council tonight. Mayor Pro Tem Webb stated that the park is in Newport Center and suggested naming the park "Newport Center Park ". He believed that everyone thinks of Central Park as New York City, but Newport Beach doesn't want to be tied to New York City. Council Member Ridgeway stated that he would like to call the park "Newport Center Central Park ". Council Member Selich stated that he could support naming the park "Newport Center Park". Council Member Rosansky suggested naming it "Center Park" since everyone knows the park is in Newport Beach. Council Member Daigle stated that she likes "Newport Center Central Park", but agreed that having "Newport Center" in the name is important. Jan Vandersloot stated that, in 1999, former Council Member Thomson introduced the idea of turning this location into a park and called it "Newport Central Park ". He noted that Stop Polluting Our Newport (SPON) developed a concept for the park and called it "Newport Central Park" since it is above the Central Library, is central in Newport Beach, and is adjacent to Newport Center. However, he doesn't have any objection to "Newport Center Park ". Bernie Svalsted stated that he is the chairman to the committee that is trying to raise over $1 million for the park during the Centennial. He indicated that some of his committee members would prefer "Newport Beach Centennial Park ", but supports "Newport Center Park ". City Manager Bludau stated that there is a separate issue to discuss, but suggested that Council decide what the name of the park will be before it is discussed. Motion by Mayor Pro Tern Webb to name the park located behind the Newport Beach Central Library "Newport Center Park". The motion carried by the following roll call vote: Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols Recreation and Senior Services Knight stated that, several months ago when they came before Council with the concept for this park, Council was told that they did not have the $1.2 million needed for the development of the park. She reported that someone in the community is interested in potentially underwriting the development of the park; however, they would like some name recognition. Council Member Ridgeway stated that this happened with Mariners Library and the Creans. He noted that, even though their name is on the library, the citizens still refer to it as Mariners Library. He stated that the same will occur here. Volume 57 - Page 337 INDEX City of Newport Beach City Council Minutes June 28, 2005 Recreation and Senior Services Knight referenced the Council policy and added that it suggests that facilities and areas within parks can be named after an individual if there is a Council- approved capital campaign. Council Member Ridgeway stated that, if someone is going to underwrite a majority of this cost, he has no problem putting their name on the plaque in the park. He pointed out that this person should realize that people will be calling it "Newport Center Park". Council Member Rosansky questioned whether this is an agendized item. City Attorney Clausen believed that this is agendized because Council is naming the park. Council Member Rosansky noted that Council already named the park. Following discussion, Council Member Ridgeway recommended that Council reopen the issue so it could reconsider the name of the park. Motion by Mayor Pro Tern Webb to reopen the consideration of the name of the park. The motion carried by the following roll call vote Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols Motion by Mayor Pro Tern Webb to name the park located behind the Newport Beach Central Library "(Donor Name) Newport Center Park ". The motion carried by the following roll call vote: Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols City Manager Bludau noted that the naming right and anything else that goes along with that will be done via an agreement with the City. 27. SCHEDULING OF THE PUBLIC HEARING FOR THE ST. ANDREWS PRESBYTERIAN CHURCH EXPANSION PROJECT (PA2002 -265) (contd. from 6/14/05). City Manager Bludau stated that Council had previously talked about whether they wanted to hold a special meeting to discuss the St. Andrews Presbyterian Church expansion project or use one of the August meetings to only talk about this. Mayor Heffernan noted that there are already four meetings scheduled for August due to the General Plan Update. He stated that August 2 is the only Tuesday left to hold a special meeting. Motion by Mayor Pro Tern Webb to hold a special meeting to discuss the St. Andrews Presbyterian Church Expansion Project on August 2 at 7 p.m. Volume 57 - Page 338 INDEX (100 -2005) u 0 City of Newport Beach City Council Minutes June 28, 2005 SCity Attorney Clauson stated that, if there are ordinances involved in the General Plan, there may be requirements with regard to what type of meeting the ordinances can be adopted at because it may need to done at a regular meeting. Mayor Heffernan recessed the meeting at 8:50 p.m. and reconvened the meeting at 9:03 p.m. with all members of Council present. City Attorney Clauson reported that, since the issue involves an ordinance, it can only be approved or adopted at a regular meeting or adjourned regular meeting. She indicated that Council can agendize the issue for the July 26 meeting and adjourn the item to whenever it wants since that meeting will become an adjourned regular meeting. City Manager Bludau stated that Council could also schedule the issue for August 9 but notice it in advance that it will be continued to August 11. Bill Dunlap, representing the Cliff Haven Community Association, reported that they are in mediation with the church right now and requested that this come back after the summer season. Donald Krotee, representing the Newport Heights Community Association, agreed with Mr. Dunlap since they are in mediation with the church along with the other association. He stated that he would like to give this a little more time. He added that a number of his community . will be on vacation the latter part of August. Council Member Ridgeway reported that he will be gone after August 11 and will not return until September. Philip Bettencourt, representing St. Andrews Presbyterian Church, noted that this application has been before the City for 2'/s years and has gone through nine meetings. He stated that the church is satisfied with the date proposed and noted that they are entitled to a timely, noticed public hearing before Council on the recommendations of the Planning Commission. He indicated that this gap between the Commission and Council hearings was not what Council followed when hearing the St. Mark Church issue. He noted that they filed the application on December 24, 2003. City Attorney Clauson believed that the difference between the time lag between these hearings and St. Mark Church is because St. Andrews waived its rights to any type of quick resolution by Council to allow time for negotiations. If the applicant now wants to have the hearing, she stated that this would lead the Council in their determinations. She indicated that they will need to look at the zoning code to determine the provisions to the General Plan Amendments and the hearing process, and the timing on when Council is supposed to hear the issue after the Commission hears it, but it's up to the applicant to waive the time period. Assistant City Manager Wood noted that the Council policy states that, before adopting the General Plan or any part of it, Council shall hold at least one public hearing in which the time and place is noticed. She stated that there's no timeline given for General Plan Amendments. Planning Volume 57 - Page 339 INDEX City of Newport Beach City Council Minutes June 28, 2005 INDEX Director Temple stated that the General Plan Amendment is the leading application, but there is also a zoning amendment involved in this application. She reported that she has never seen this amount of time gap, but she has never had an application that needed this kind of delay. City Attorney Clauson reported that, for a zoning amendment, the decision has to be rendered within 60 days after the receipt of a report and recommendation by the Commission. She clarified that the applicant has a right to a timely hearing, but the applicant can waive this timeframe. Mr. Bettencourt stated that they are okay with August 11, even if it means a 60 day waiver of the zoning matter. He indicated that they cannot consider the first meeting in September. Jim Hildreth stated that the people being affected need to start a paper trail if they're going on vacation and want their testimony given to Council. Motion by Council Member Ridgeway to direct staff to agendize the public hearing on August 9, 2005 and then adjourn the issue to August 11, 2005. Mayor Pro Tem Webb expressed his disappointment that the applicant is not willing to extend the time for the arbitration process. Member Rosansky asked if the applicant can make his waiver dependant of another date. City Attorney Clauson indicated that she hasn't looked into the many issues involved and is still unsure how this works with the General Plan Amendment which is a legislative act. She reported that, under the California Environmental Quality Act, the applicant must waive the timeframe because the City was supposed to act on the environmental document within a year. She stated that the applicant has already waived that timeframe and assumed that this waiver also applies here. She indicated that she would hate for the City to refuse to give them a hearing date within a time period and have that somehow give them a legal argument that they had a right to a hearing sooner. City Manager Bludau suggested picking a time for the meeting since the City will need to notice the August 11 meeting well in advance. Mayor Heffernan stated that there should be a thorough public hearing, but not necessarily 10 hours of repetitive comments. He stated that he is going to ask for the concurrence of the audience to try to have spokespeople to centralize the focus. Council Member Rosansky asked if Council can limit debate from the public to four hours. City Attorney Clauson indicated that Council can agendize the item as the last item on the August 9 agenda, open the hearing and start taking testimony, and then continue it to August 11. She reported that Council can control debate, the time allowed for public comments, and the time limits for speakers. Council Member Ridgeway indicated that the City cannot notice 200 people to be at the meeting just to start the testimony. He stated that the City is better off indicating its intention to have this matter heard on August 11. Volume 57 - Page 340 u 0 City of Newport Beach City Council Minutes June 28, 2005 _Uouncil Member Ridgeway amended his motion to start the August 11, 2005 meeting at 6 p.m. The amended motion carried by the following roll call vote: Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols Assistant City Manager Wood stated that staff could prepare a report for the August 9 meeting that outlines the parameters for the public hearing. Mayor Pro Tem Webb requested that this report be done for the July 26 agenda so everyone has the rules in advance in order to put their presentations together. 28. APPOINTMENTS TO BOARDS AND COMMISSIONS. Council Member Rosansky announced that he will be recusing himself from voting on the City Arts Commission because his sister is a nominee. City Clerk Harkless read the ballot votes for the Board of Library Trustees as follows: Harry Hamilton (Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan) City Clerk Harkless announced that Harry Hamilton is reappointed to the Board of Library Trustees. City Clerk Harkless read the ballot votes for the City Arts Commission as follows: Gerald Allison (Webb, Ridgeway, Daigle) Dennis Baker (Mayor Heffernan) Robyn Grant (Selich, Webb, Ridgeway, Daigle, Mayor Heffernan) Kirwan Rockefeller (Selich, Webb, Ridgeway, Daigle, Mayor Heffernan) City Clerk Harkless announced that Gerald Allison and Robyn Grant are appointed to the City Arts Commission, and Kirwan Rockefeller is reappointed to the City Arts Commission. City Clerk Harkless read the ballot votes for the Civil Service Board as follows: Bert Carson (Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan) City Clerk Harkless announced that Bert Carson is reappointed to the Civil Service Board. City Clerk Harkless read the ballot votes for the Harbor Commission as follows: Volume 57 - Page 341 INDEX City of Newport Beach City Council Minutes June 28, 2005 INDEX Seymour Beek (Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor - Heffernan) Ralph Rodheim (Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan) City Clerk Harkless announced that Seymour Beek and Ralph Rodheim are reappointed to the Harbor Commission. City Clerk Harkless read the ballot votes for the Parks, Beaches & Recreation Commission as follows: Allen Doby ( Rosansky, Ridgeway, Daigle) Phillip Lugar (Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan) Roy Englebrecht (Selich, Webb, Mayor Heffernan) City Clerk Harkless announced that Phillip Lugar is appointed to the Parks, Beaches & Recreation Commission, and second ballots will be distributed to vote between Allen Doby and Roy Englebrecht. City Clerk Harkless read the ballot votes for the Planning Commission as follows: Michael Toerge (Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan) Ron Baers (Webb) . Michael Henn (Selich, Rosansky, Ridgeway, Daigle, Mayor Heffernan) City Clerk Harkless announced that Michael Henn is appointed and Michael Toerge is reappointed to the Planning Commission. City Clerk Harkless read the second ballot votes for the Parks, Beaches & Recreation Commission as follows: Allen Doby ( Rosansky, Ridgeway, Daigle, Mayor Heffernan) Roy Englebrecht (Selich, Webb) City Clerk Harkless announced that Allen Doby is appointed to the Parks, Beaches & Recreation Commission. Council Member Ridgeway announced that Mr. Doby is in the audience and congratulated him. Council Member Rosansky noted that Phillip Lugar is now on three committees and asked if there is a policy regarding this. Assistant City Manager Wood reported that there is a Council policy that says people should serve on only one commission or committee. She stated that Mr. Lugar is currently Co -Chair of the General Plan Advisory Committee (CGPUC) and a member of the Environmental Quality Affairs Committee (EQAC). Council Member Ridgeway stated that GPUC and GPAC allows people to serve on both committees, but agreed that Mr. Lugar may need to reconsider his EQAC appointment. Mayor Heffernan thanked all the applicants and Council Members Rosansky, Daigle, and Ridgeway for serving on the interview committee. Volume 57 - Page 342 City of Newport Beach City Council Minutes June 28, 2005 Council Member Daigle noted that there were a lot of highly qualified applicants. 29. INTERIM URGENCY ORDINANCE EXTENDING A TEMPORARY MORATORIUM ON THE ESTABLISHMENT AND OPERATION OF MEDICAL MARIJUANA DISPENSARIES. City Attorney Clausen reported that the Supreme Court made a final determination which held that the Federal law as it relates to controlled substances is a valid Congressional Act and is supported by the Commerce Clause and, therefore, preempts State law. She indicated that this decision did not determine that the State law was unconstitutional, as noted by the State Attorney General. She stated that, under the Federal Law, any sale or use of marijuana would be illegal and, under State law, would be legal for medicinal purposes. She reported that they are proposing to extend the moratorium for the full time allowed to let this legal limbo work itself out since there are other lawsuits pending. She added that this is also needed to come up with any type of regulation or prohibition. Motion by Council Member Ridgeway to adopt an interim urgency ordinance (Ordinance No. 2005 -11) extending the temporary moratorium on the establishment and operation of medical marijuana dispensaries for ten (10) months and fifteen (15) days. Jim Hildreth stated that the general public has voted and agreed with the attitude of trying to help those in pain and distress. He expressed hope that the City and police will take the State's requirements into consideration as to how to deal with these locations. He stated that the State has places that dispense drugs, but those places need doctor prescriptions. He noted that, if you pick up the stuff, you have to drive with it in your vehicle but there's a law against that. The motion carried by the following roll call vote Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols O. CURRENT BUSINESS 30. APPOINTMENTS TO FILL VACANT POSITIONS ON VARIOUS COMMITTEES CREATED BY THE RESIGNATION OF MAYOR BROMBERG. City Clerk Harkless read the list of appointments made by Mayor Heffernan to fill the vacant positions created by the resignation of Mayor Bromberg. Following discussion, motion by (Iouncil Member Ridgeway to confirm the following appointments: 1) Aviation Committee — Mayor Pro Tem Webb (Chair) and Council Volume 57 - Page 343 INDEX (100 -2005) (100 -2005) City of Newport Beach City Council Minutes June 28, 2005 Member Nichols (Vice Chair); 2) Ad Hoc Committee to Promote the Revitalization of the Balboa Peninsula (PROP) [confirmation of District 5 Council Member] — Council Member Selich; 3) Building Ad Hoc Committee — Council Member Ridgeway (Chair) and Mayor Pro Tern Webb; 4) Economic Development Committee — Council Member Rosansky (Chair) and Mayor Heffernan; 5) City Council Ad Hoc Sphere Issues Committee — Mayor Heffernan (Chair); 6) Affordable Housing Task Force — Council Member Selich; 7) Ad Hoc General Plan Update Committee — Council Member Selich (Chair); 8) Local Coastal Program Certification Committee — Mayor Pro Tem Webb (Vice Chair) and Council Member Selich; 9) City Council Economic Advisory Committee — Council Member Selich; 10) City Centennial 2006 Committee — Council Member Selich; 11) City Council/Citizens Ad Hoc Committee for Marina Park Planning — Mayor Pro Tern Webb (Chair) and Mayor Heffernan; 12) Inter -City Liaison Committee — Mayor Pro Tern Webb; and 13) Newport Beach/Costa Mesa /Huntington Beach Borders Committee — Council Member Daigle. The motion carried by the following roll call vote Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols 31. SUNSET RIDGE PARK — COMMUNITY OUTREACH FOR THE MASTER PLAN. Recreation and Senior Services Director Knight utilized a PowerPoint presentation and reported that the City hired RJM Design Group to develop a master plan for the park. She noted that RJM has extensive experience in doing this type of process in many communities in Southern California and was highly recommended to the City for this and due to their overall park planning experience. She reported that the City will notice the residents in the vicinity of this park and the youth sports organizations, and will do community outreach and newspaper notifications so people are aware of this process. She indicated that the date has not been confirmed, but reported that the Saturday workshop will be four to six hours and will probably be held in late July or early August. She stated that the first part of the workshop will be used to review the park site, talk about the objectives, discuss the site analysis, and talk about opportunities and constraints. She added that the participants will be given a customized workbook and then board buses to visit the site so the consultant can walk them through it. She reported that they will then be broken up into smaller groups to see what they thought about the site, then report to the larger group, and then the smaller groups will be asked to design the park with amenities. Volume 57 - Page 344 INDEX (100 -2005) E 9 City of Newport Beach City Council Minutes June 28, 2005 Recreation and Senior Services Director Knight reported that everyone who came to the first meeting will be invited to the second meeting. She noted that this meeting will be open to others, but the focus is to start where the first meeting left off and move forward. She reported that the consultant will review the consensus of the plans that the small groups came forward with and bring it to a preliminary plan. She stated that the consultant will then do some sketches that provide different perspectives from throughout the park. Mayor Heffernan asked why this is being expedited. Recreation and Senior Services Director Knight noted that this format was presented to Council when they hired the consultant. Mayor Heffernan expressed concern that the workshop will be held during peak vacation time. Council Member Rosansky noted that the process will be influential in Council's decision, but emphasized that the approved design will ultimately be up to Council. He added that he was told in December that these outreach meetings would happen in March. He emphasized that this has dragged for four years since the legislation was approved and this is part of what got the City in trouble with the State. He noted that he went to Sacramento today and that the City needs to show that it's acting diligently. He encouraged having the workshop in July since people leave town in August. Regarding whether the park will be an active or passive park, City Manager Bludau indicated that he has been telling people for the last three or four years that it would be an active park. Council Member Rosansky stated that he has also been telling people that it's going to be an active park; however, he noted that the site is multilevel and may offer opportunities for a portion of it to be passive or semi - passive, i.e. having a playground. City Attorney Clauson believed this park being an active park is related to the legislation or the lease the City has with the State Parks. She stated that she believed that some portion of the park has to be active, but they can clarify any requirements prior to starting the workshop. Mayor Pro Tem Webb noted that every active park has passive uses, but stated that he cannot support the representation that this could be a totally passive park. He emphasized that Sunset Ridge Park was always going to be an active park to assist with some of the deficiencies that the West Newport and Peninsula areas have relative to ballfields. Council Member Ridgeway believed that the decision about two years ago was that Newport Center Park would be passive; however, he cannot recall any Council Member who has not supported the concept of an active park at Sunset Ridge Park. He noted that this park was being discussed when he was on the Planning Commission 13 years ago. Motion by Council Member Ridgeway to direct staff to proceed with the community outreach and provide direction to design Sunset Ridge Park as an active park. The motion carried by the following roll call vote: . Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Volume 57 - Page 345 INDEX City of Newport Beach City Council Minutes June 28, 2005 Absent: Nichols 32. RECYCLING SERVICE FEE INCREASE OF $0.12 PER MONTH FOR FY 2005 -2006 FOR RESIDENTIAL USERS. Acting General Services Director Pisani utilized a PowerPoint presentation and reported that, since 1990, Council has authorized a recycling service fee to fund City expenses incurred in meeting the recycling mandates. He noted that the current fee is $2.81 per residential unit per month. He reported that the fee has been based on the processing cost for the 42,000 tons of refuse brought to the CRT materials recovery facility in Stanton and on recycling related costs incurred with public education, waste studies, recycling plan development, and staff time. He pointed out that the only factors leading to the proposed increase are the 3% CPI increase allowed in the CRT contract and a slight increase in salary and benefit costs. He announced that they are seeking a $12 increase for residential units per month ($.09 for the contract increase and $.03 for salary costs). He reported that it costs $15.56 a month per home to collect residential refuse in the City. Motion by Mayor Pro Tem Webb to adopt Resolution No. 2005 -38 authorizing the recycling service fee to be set at $2.93 per month per residential unit effective July 1, 2005; and rescind Resolution No. 2004 -55. Council Member Daigle expressed concern about imposing this fee since the landfill disposal costs will remain constant. Further, the County provided her with data that shows that the City has the second highest property assessment in the County. She stated that this means that people will be paying more taxes but the level of service remains the same. City Manager Bludau stated that everyone in the community needs to support recycling and noted that the City makes it easy on the residents because it doesn't require them to separate their refuse. He noted that Newport Beach might be the only city in the County in which residents don't pay residential rates to have their refuse picked up. Council Member Daigle stated that she is pro - recycling, but suggested that there be some relief relative to increasing fees. City Manager Bludau noted that the City gets a lot in revenue, but also spends a lot on services back to the community. Acting General Services Director Pisani reported that the fee is calculated to equal the recycling cost. City Manager Bludau noted that the Management Assistant is charged against this fee. Acting General Services Director Pisani stated that the fee increase equates to $38,900 a year ($1.44 a year per household x 27,700 homes), but the overall cost for the refuse program is $877,000 a year. Jim Hildreth believed that the residents don't deserve this increase and shouldn't pay it without having more options. He stated that there should be an incentive for recycling. He noted that people can only have garage sales two times a year and there's an ordinance against trash diggers. He indicated that the City may want to pay someone to pick up the items that are left next to the trash cans. Mayor Heffernan noted that the City will be addressing the recycling component of this in the future. Volume 57 - Page 346 INDEX (100 -2005) i 0 City of Newport Beach City Council Minutes June 28, 2005 The motion carried by the following roll call vote: Ayes: Selich, Rosansky, Webb, Ridgeway, Mayor Heffernan Noes: Daigle Abstain: None Absent: Nichols 33. TITLE 14 AMENDMENTS INCORPORATING WATER AND SEWER FEE ADJUSTMENTS. Administrative Manager Deutsch utilized a PowerPoint presentation and reported that this report went before the Finance Committee after it was approved by the City Manager's office. He noted that the cost of water from the Municipal Water District and the Orange County Water District has increased, they will be reducing the City's allowance from 66% to 64 %, and the City will be receiving a reduction in the annexation fee. He reported that these factors represent a $100,000 increase which means that the total water purchase cost will be $550,000. He added that salary increases due to PERS represent a $268,000 increase. Regarding wastewater, he noted that the Regional Water Quality Board has imposed new waste discharge requirements and required an increased capital improvement program which represents $600,000. Further, salary and benefits increases total about $100,000. • Administrative Manager Deutsch referenced Council Policy F -2 and stated that, for the Water Enterprise Fund, the ending fund balance for 2005- 2006 will be about $9.9 million with the target balance being about $10 million. He indicated that, without a rate increase, after 2005 -2006, the reserve will deplete by $1.5 million a year; the reserve will not be met by 2006 -2007; and the reserve will be depleted by 2011 -2012. Regarding wastewater, the fund balance at the end of 2005 -2006 will be about $1.2 million with the target balance being $2.5 million. He indicated that, without a rate increase, about $800,000 will be depleted every year, they will not meet the reserve this current year, and there will be no reserve available in 2007 -2008. He emphasized that, with the rate increases, the funds will continue to meet the reserve amounts. He displayed a slide of the proposed fee increases and noted that the last water increase occurred in 1996. He stated that an average customer now pays $45.78, but will be paying $49.89 if the proposed rates are approved. He indicated that they are setting up a web site which will include the staff report, the PowerPoint presentation, and associated documentation. Further, the City Manager has sent out a letter with the water quality report which discusses the rates and invites residents to speak on them. He stated that the Utilities Department can be reached at 949 - 644 -3031 or by emailing them through the City website. Mayor Pro Tem Webb stated that the Utilities Department has done an excellent job managing their funds and capital improvement programs. He reported that the City's preventative maintenance plan that replaces its facilities before it fails puts it ahead of most other water agencies in the County. Volume 57 - Page 347 INDEX (100 -2005) City of Newport Beach City Council Minutes June 28, 2005 INDEX Motion by Mayor Pro Tern Webb to 1) introduce and pass to second reading Ordinance No. 2005 -13 (amending Section 14.12.020 and 14.24.065 of Title 14 of the Newport Beach Municipal Code) which a) increases the water use fee from $2.00 to $2.08 for each hundred cubic feet of water delivered to each customer connected to the City water system; b) increases the water meter fee based on meter size as indicated in report; c) increases the sewer use fee from $0.25 to $0.30 for each hundred cubic feet of water delivered to each customer connected to the City water and sewer system, effective September 1, 2005; d) increases the sewer use fee from $0.30 to $0.35 for each hundred cubic feet of water delivered to each customer connected to the City water and sewer system, effective September 1, 2006; e) increases the sewer connection fee from a basic fee of $3.60 per month to $4.50 per month for sewer customers connected to the water and sewer system; and i) increases the sewer connection fee from a basic fee from $5.25 per month to $6.25 per month for sewer customers that do not purchase water from the City; and 2) schedule a public hearing on the proposed amendments to the ordinance (amending Section 14.12.020 and 14.24.065 of Title 14 of the Newport Beach Municipal Code) on July 26, 2005. Jim Hildreth disagreed with the increase since the City is in the black. He believed that, if these increases continue, he doesn't see a reason to rebuild City Hall since the residents can't afford it. He stated that people should conserve water; however, if people conserve water after the fees are raised and the City is not making enough money, it doesn't serve a purpose. • Council Member Ridgeway stated that this is a responsible action to keep the infrastructure of the sewer system in tact. He noted that the Orange County Sanitation District has raised its fees 31% ($.25 a month) and will be taking the toilet water through the City's infrastructure. Council Member Rosansky noted that a 9% increase over 9 years equates to 1% a year. He stated that, on adjusted terms, the rate is probably cheaper today than it was 9 years ago and so the City is effectively providing a service for less money year after year. He applauded the efforts of the Utilities Department. Mayor Pro Tem Webb reported that the City has gotten over $500,000 in increases directly from the water agencies that supply the City. He noted that some of those charges are being passed on to the community so the reserves are not depleted. Council Member Daigle stated that she is on the Finance Committee with Mayor Heffernan and Council Member Rosansky, and that they are watching all the fees closely. She noted that these fees have not increased since 1996, but there are rising energy and water costs on the wholesale level that cannot be controlled. The motion carried by the following roll call vote: Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None . Abstain: None Volume 57 - Page 348 0 i 0 City of Newport Beach City Council Minutes June 28, 2005 Absent: Nichols 34. CENTENNIAL CONTRACT APPROVALS (C- 3761): 1) CONTRACT FOR THE BEACH BOYS PERFORMANCE AT CENTENNIAL OPENING EVENT; AND 2) PROFESSIONAL SERVICES AGREEMENT WITH FIESTA PARADE FLOATS FOR DESIGN AND CONSTRUCTION OF THE CITY OF NEWPORT BEACH'S 2006 ROSE PARADE FLOAT. Recreation and Senior Services Director Knight reported that the first contract is for the Beach Boys to perform at the October 2 "Let's Do Launch" event and the second contract is with Fiesta Floats for the design and construction of the 2006 Rose Parade Float. Motion by Council Member Ridgeway to approve the Centennial related contracts. The motion carried by the following roll call vote: Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols 35. COUNCIL DISCUSSION ON WHETHER TO HOLD THE JULY 12TH REGULAR MEETING. City Manager Bludau stated that the reason this option was raised was because three Council Members were considering going to Antibes, France, to celebrate the 15th anniversary of the Sister City Program. However, some of the Council Members have reconsidered whether they will be going. Motion by Council Member Ridgeway to cancel the July 12, 2005 Council meeting. Council Member Ridgeway stated that, if something extraordinary comes up, a special meeting can be called. Further, he pointed out that there will be four or five meetings in August. The motion carried by the following roll call vote: Ayes: Selich, Rosansky, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: None Abstain: None Absent: Nichols S36. APPOINTMENTS TO FILL VACANCIES CREATED BY THE APPOINTMENT OF ED SELICH TO THE CITY COUNCIL. Mayor Heffernan stated that he is thinking about appointing Earl McDaniel to the Economic Development Committee (EDC) and Michael Henn to the Local Coastal Program Certification Committee. Council Volume 57 - Page 349 INDEX C -3761 (38/100 -2005) (100 -2005) City of Newport Beach City Council Minutes June 28, 2005 Member Ridgeway indicated that he recommends appointing Michael Henn to both committees since Earl McDaniel cannot attend daytime meetings. Council Member Rosansky reported that Robert Hawkins has requested to be on EDC. Council Member Daigle stated that Michael Henn was the former CEO of Kaufmann and Broad and is very capable. Motion by Mayor Heffernan to confirm the Mayor's appointment of Michael Henn as the Planning Commission representative on the Economic Development Committee (EDC) and the Local Coastal Program Certification Committee. The motion carried by the following roll call vote: Ayes: Selich, Webb, Ridgeway, Daigle, Mayor Heffernan Noes: Rosansky Abstain: None Absent: Nichols P. ITEMS REMOVED FROM THE CONSENT CALENDAR - None. Q. MOTION FOR RECONSIDERATION- None. R. ADJOURNMENT - at 10:38 p.m. to 4:00 p.m. on July 26, 2005 for the Study Session and 7:00 p.m. on July 26, 2005 for the Regular Meeting. The agenda for the Regular Meeting was posted on June 22, 2005, at 1:00 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 June 24, 2005, at 11:20 a.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building City Clerk Recording Secretary 7 Volume 57 - Page 350 INDEX •