HomeMy WebLinkAbout02/25/2014 - Regular MeetingCity Council Minutes
Regular Meeting
February 25, 2014 - 7:00 p.m.
I. STUDY SESSION - 4:00 p.m.
II. CLOSED SESSION - 6:05 p.m.
A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Government Code § 54957)
Title: Leilani Brown, City Clerk
B. CONFERENCE WITH LABOR NEGOTIATOR
(Government Code § 54957.6)
Agency Designated Representatives: Councilmember Michael F. Henn
Unrepresented Employee: Leilani Brown, City Clerk
C. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6)
Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Deputy
City Manager; Negotiators.
Employee Organizations: All labor Associations: Association of Newport Beach Ocean
Lifeguards (ANBOL); Newport Beach City Employees Association (NBCEA); Newport Beach
Employees League (NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach
Fire Management Association (NBFMA); Newport Beach Lifeguard Management Association
(NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management
Association (NBPMA); Newport Beach Professional and Technical Employee Association
(NBPTEA); and Part -Time Employee Association of Newport Beach (PTEANB).
III. ROLL CALL
Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council
Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill
IV. CLOSED SESSION REPORT - City Attorney Harp announced that no reportable action
was taken
V. PLEDGE OF ALLEGIANCE - Mayor Hill
VI. INVOCATION - Council Member Petros
VII. PRESENTATIONS) -None
VIII. NOTICE TO THE PUBLIC
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February 25, 2014
IX. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICki COUNCIL MEMBERS
WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM)
Council Member Daigle discussed the Osprey nesting in a City park near the Back Bay and
displayed photos, requesting that staff look into the matter with the possibility of installing a
protective net, another light standard next to the existing one, or installing additional protection
from balls. Additionally, she also discussed significant improvements over the years in the Upper
Bay, noting that staff has worked with the Orange County Transportation Authority (OCTA) to add
$1.6 million to a project in the Lower Big Canyon to construct a wetland to filter the runoff from
Jamboree. She referenced other activities related to Lower Big Canyon as listed under Item 9,
reported that Vector Control is receiving various agency approvals to reduce the source of water
that serves as a breeding ground for mosquitoes, and added that the Irvine Ranch Conservancy has
begin a restoration project and is working with community partners. She thanked City staff for its
efforts in obtaining the grant.
Council Member Curry reported receiving an email from Southern California Edison (SCE)
reminding the public that heavy rains are expected and cautioning everyone not to touch downed
power lines.
Council Member Gardner reported that the results of the Corona del Mar Parking Study will be
presented on February 26, 2014, in the Community Boom at 6:00 p.m. Additionally, she announced
that the Lower Castaways Ad -Hoe Committee will meet on March 3, 2014, at 4:00 p.m. in the
Crystal Cove Meeting Room to discuss opening it up to more activities, as well as design concepts.
Council Member Petros announced that a Bicycle Master Plan Oversight Committee meeting will
be held on March 3, 2014, in the Community Room, at 5:00 p.m. He added that recommendations
for a Bicycle Master Plan will be discussed and invited those interested to attend.
Mayor Pro Tem Selich commented on the Sculpture in the Park program and reported that the
Civic Center architect has prepared a Master Plan. He noted that the Arts Commission indicated
that they received 52 submittals as of last week. On March 28, 2014, the panel of three arts
professionals and three Arts Commissioners will select 10 sculptures with three or four alternates
to present to the Arts Commission and subsequently to Council for ratification. He added that the
installation date has been postponed to early in the fall.
Council Member Gardner commented positively on the number and quality of entries.
Mayor Pro Tem Selich announced that, the General Plan/Local Coastal Program Implementation
Committee meeting originally scheduled for February 26, 2014, has been cancelled due to lack of
appearance by Coastal Commission staff.
Mayor Hill announced that the sculpture entry deadline is February 28, 2014, at 11:59 p.m.
Additionally, he reported that the Orange County Sanitation District (OCSD) announced the
beginning of night work on Newport Boulevard beginning February 26, 2014, from 7:00 p.m. to
7:00 a.m. through March 5, 2014 as part of the Balboa Trunk Sewer Rehabilitation Project.
Questions or concerns can be directed to the OCSD at 71.4-679-2088 or
constructionhotline@DKISD.com. Additionally, he announced one vacancy on the Water
Quality/Coastal Tidelands Committee and that applications can be accessed on the City's website
at www.newnortbeach ca.gov, can be obtained at the City Clerk's Office or by calling the City
Clerk's Office. The deadline for filing an application is March 17, 2014, at 4:00 p.m. Mayor Hill.
also reported attending the opening of the first Pickleball tournament where the Western Regional
Head of Pickleball attended.
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X. PUBLIC COMMENTS ON CONSENT CALENDAR
Jim Mahoney spoke regarding Item 10 (Water Taxi and Multiple Vessel Mooring System) and
Mayor Hill noted that the Item has been pulled and that public comment will be received when it is
discussed.
XI. CONSENT CALENDAR
A. READING OF MINUTES AND ORDINANCES
1. Minutes for the February 11, 2014 Regular Meeting.
Waive reading of subject minutes, approve as amended, and order filed.
2. Reading of Ordinances.
Waive reading in full of all ordinances under consideration, and direct City Clerk to read by
title only.
C. ORDINANCE(S) FOR ADOPTION
4. Back Bay Landing, Second Reading, 300 East Coast Highway (PA2011-216).
a) Conduct a second reading and adopt Ordinance No. 2014-3 (Staff Report Attachment
No. CCI), An Ordinance of the City Council of the City of Newport Beach Approving
Code Amendment No. CA2013-009 for the Approximately 31 Acre Planned Community
Known as Back Bay Landing Located at 300 East Coast Highway (PA2011-216), finding
that all significant environmental concerns for the proposed project have been
addressed in a previously certified Environmental Impact Report No. ER2012-003
(SCH No. 2012101003) and approving Code Amendment No. CA2013-009 to expand the
boundaries of Planned Community District PC -9; and
b) Conduct second reading and adopt Ordinance No 2014-4 (Staff Report Attachment
No. CC2), An Ordinance of the City Council of the City of Newport Beach Approving
Planned Community Plan Adoption No. PC2011-001 for the Approximately 30 Acre
Planned Community Known as Back Bay Landing Located at 300 East Coast Highway
(PA2011-216), finding that all significant environmental concerns for the proposed
project have been addressed in a previously certified Environmental Impact Report
No. ER2012-003 (SCH No. 2012101003) and approving Planned Community
Development Plan No. PC2011-001 to allow for the classification of land within the
PC -9 boundaries and establishment of development standards, design guidelines, and
procedures for implementation of future project and long-term operation of the site.
E. CONTRACTS AND AGREEMENTS
6. Central Balboa & Newport Heights Alley and Street Replacement - Completion
and Acceptance of Contract No. 4945 (CAP12-0033) (C-4945).
a) Accept the completed work and authorize the City Clerk to file a Notice of Completion
for the project;
b) Authorize the City Clerk to release the Labor and Materials Bond 65 days after the
Notice of Completion has been recorded in accordance with applicable portions of the
Civil Code; and
c) Release the Faithful Performance Bond one year after this Council acceptance.
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on
Council Member Henn recused himself from this item because he lives within
500 -feet of the subject property.
7. Amendment to Professional Services Agreement with Urban Crossroads for Land
Use Element Amendment Traffic Impact Analysis (C-3524).
Approve Amendment No. 2 to PSA with Urban Crossroads to provide additional traffic
analysis related to the Land Use Element (LUE) Amendment at a not -to -exceed cost of
$99,800 and authorize the Mayor and City Clerk to execute Amendment No. 2.
Council Member Henn recused himself from this item due to a possible conflict of,
interest since he has a business relationship with a business in the Via Lido Plaza.
8. Amendment to Professional Services Agreement with Anderson Penna Partners,
Inc. for Santa Ana Heights Pavement Rehabilitation Project - Contract No. 5396
(CAP11-0022) (C-5396).
Approve Amendment No. 2 to PSA with
additional inspection services related to the
project at a not -to -exceed cost .of $60,000,
execute Amendment No. 2.
Anderson Penna Partners, Inc. to provide
Santa Ana Heights Pavement Rehabilitation
and authorize the Mayor and City Clerk to
9. Big Canyon Diversion - Award of Contract No. 5556 (CAP14-0029) (C-5556).
a) Approve the project drawings and specifications;
b) Award Contract No. 5556 to Bali Construction, for the total bid amount of $119,323.58,
and authorize the Mayor and the City Clerk to execute the contract;
c) Establish a contingency of $12,000.00 (approximately 10%) to cover the cost of
unforeseen work; and
d) Approve Budget Amendment No. 14BA-031 appropriating $38,000 from the
unappropriated Wastewater Enterprise Fund to 7541-C7002004.
Motion by Mayor Pro Tem Selich, seconded by Council Member Curry, to approve the
Consent Calendar, except the items removed (3, 5 and 10); and noting the recusals by Council
Member Henn on Items 6 and 7.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council
Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill
ITEMS REMOVED FROM THE CONSENT CALENDAR
3. Introduction of Ordinance No. 2014-5 Amending Newport Beach Municipal Code
Chapter 10.32 Regarding Sound Amplification Permits.
City Attorney Harp provided a staff report and addressed allowing denial of a sound -
amplification permit if the application does not meet the Code requirements and if the activity
described in the application violates the Code. He added that staff proposed an amendment to
the sound -amplification permit to allow denial based on past conduct. He reported that, when
the ordinance was initially drafted, it was a mandated denial if there was a revocation of the
permit in the last 18 months or a citation was issued; however, staff is proposing to make it
permissive instead of mandatory.
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In response to Council Member Petros' question, City Attorney Harp reported that the appeals
would go before the Finance Director and then to the City Manager.
Jim Mosher referenced his written comments and expressed concerns relative to having the
matter be appealed to the Finance Director, believing it should go before the Community
Development Department. He also asked about the origin of this request and took issue with
staff writing new laws for the City when Council did not give direction to do so.
Council Member Henn reported receiving several complaints from residents in his District and
indicated that he discussed them with staff who returned with a reasonable recommendation to
address the matter.
In response to Council Member Daigle's question regarding having the Finance Director decide
the appropriateness of sound, City Manager Kiff reported that it has been in the Code for a
long time and that the Finance Director typically plays a regulatory role.
Motion by Council Member Henn, seconded by Mavor Pro Tem Selich to introduce
Ordinance No. 2014-5, An Ordinance of the City Council of the City of Newport Beach Amending
Chapter 10.32 of the Newport Beach Municipal Code Regarding Sound Amplification Permits,
and pass it to a second reading on March 11, 2014.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Council. Member Curry, Council
Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill
5. Balboa Pier Parking Rate Modification (to Comply with a Recently -Issued Coastal
Development Permit to install automated pay stations).
Council Member Gardner commented on the City Manager's ability to decrease or increase the
rate by no more than 25%, not to exceed 50%, and asked whether staff has spoken with Coastal
Commission staff regarding the matter. City Manager Riff responded affirmatively.
Regarding CEQA issues in the Resolution and alternative language, City Attorney Harp
reported that the matter relies on multiple exemptions, not just the first exemption.
In response to Council Member Gardner's question on the distinction between Balboa Pier and
Corona del Mar State Beach, City Manager Kiff reported that staff is following up the same
procedure with the Coastal Commission and reported on an upcoming Coastal Commission
agenda item regarding Corona del Mar. He stated that, pending their approval, staff will
return to Council to report what they approve.
Mayor Pro Tem Selich recommended not adopting the Resolution and expressed concerns with
Condition 5.3 relative to regulating the time that people use the beach. He believed that this
sets precedent and the City will be implicitly agreeing to relinquishing its ability to restrict
hours of use. He suggested waiting until the Local Coastal Plan (LCP) is adopted so the City
can issue permits. He stated the need to regroup and take another look at both the Balboa Pier
parking lot and the Corona del Mar parking lot.
Regarding Condition 5.3, City Attorney Harp noted that the Coastal Commission imposed a
condition that no additional signage is allowed. City Manager Kiff added that the sign program
was for the proposed new parking pay stations and had nothing to do with curfews or closures.
He agreed that the Condition may have inconsistencies.
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Jim Mosher reported that, when the matter was before the Coastal Commission, their staff
indicated that beaches were closed from 10:00 p.m. to 6:00 a.m. and questioned whether the
City had applied for a Coastal Development Permit (CDP) for that regulation. He agreed that
Coastal Commission staff expressed concerns regarding allowing access to the water at all
times. He commented positively on the current system at Balboa Pier.
Mayor Pro Tem Selich emphasized that, when a CDP is accepted, it gets recorded against the
land and is not something that should be taken lightly.
Council Member Henn indicated that he supports taking additional time to study the matter,
but stated that the Condition in question does not state that the City shall have a sign that the
beach is open at all times.
Motion by Council Member Gardner, seconded by Council Member Curry, to continue
the item to the March 11, 2014, City Council meeting.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Council IYlember Curry, Council
Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill
10. Water Taxi and Multiple Vessel Mooring System.
Mayor Pro Tem Selich indicated that he wants to make sure that the City is not only looking at
electric power water taxis, but also different types of propulsion. Additionally, he suggested
that the Harbor Commission conduct extensive outreach when considering the various Multiple
Vessel Mooring Systems.
Council Member Henn reported that an extensive study on this issue was done by the Economic
Development Committee about four years ago and hoped that it will be beneficial to the Harbor
Commission.
Council Member Curry agreed that this is an initiative that needs consideration in terms of
technology, costs, and a service model. He noted that water -board transportation is one of the
most expensive modes of transportation and emphasized the need to be mindful of financial
obligations and implications.
Eric Langenbach commented on his experience with water taxis and wondered if this will be a
private venture or a publicly -funded one. Mayor Hill reported that the matter will he
addressed by the Harbor Commission with a recommendation to Council.
Duncan McIntosh, Chair of the Harbor Commission, stated that the water taxi is a point-to-
point shuttle service using a number of water crafts. If it is to be a tour service, it will compete
against existing water services in the Harbor and will be more expensive than the water taxi.
He requested clear direction from Council.
Shanda Lear, Lear Electric Boats, commended Council for considering the Item and commented
on the possibility of a water bus, noting that the technology has improved. She added that, if
properly advertised, it could attract more people to enjoy the water.
Mayor Hill noted that this is one of three 'initiatives that he hopes to work on during his tenure
as Mayor. He added that these items have been studied individually, and that the Harbor
Commission has spent hours studying this topic. He stated that he would like to bring the
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various studies together into one comprehensive study and will charge the Harbor Commission
to evaluate the opportunities with the goal of developing a pilot project that will free the
Harbor of space taken up by the existing system and compact it into a floating dock concept
system with the services of water and power added to the floating docks. He added that this
would allow for more of the Harbor to be used for recreation and less for boat storage. He
acknowledged that it will require more boats and capital to start, and indicated that the
revenue generated could go to a funding source that would subsidize the operation; however,
the people to work it out are the Harbor Commissioners.
Mayor Hill believed the concept would be to have a water bus on a dedicated route during the
high season, and serve as a water taxi during the low season.
City Manager Kiff received confirmation that there would be a preference for electric, green
vessels, but indicated that other forms of power will also be considered..
Motion by Mayor Pro Tem Selichseconded by Council Member Henn, to a) direct the
Harbor Commission to form an Ad -Hoc Committee to evaluate a pilot program for a possible
green, electric water taxi service within the Harbor, and then have the full Harbor Commission
review and make a recommendation to the Council on the merits for implementation of such a
service; and b) direct the Harbor Commission to form an Ad -Hoc Committee to evaluate a pilot
Multiple Vessel Mooring System including water and. power, and then have the full Harbor
Commission review and make a recommendation to the Council on the merits for
implementation of such a mooring system.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council
Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill
XIII, PUBLIC COMMENTS ON NON -AGENDA ITEMS
Jim Mosher asked about the City's plans for its West Newport facilities, noting that at a previous
meeting, staff committed to bringing back proposals in February. He pointed out that, on February
11, there was a Closed Session Item pertaining to the sale or lease of two City -owned properties
and that one of the private parties issued a press release showing the entire West Newport
Community Center rebranded as the Pacifica Christian High School. He believed that it is
imprudent to announce plans for the property until there is a publicly -vetted plan. He addressed
another case in which someone seems to think they have a secret commitment from Council and
referenced a newspaper article which quoted Gary Sherwin (Newport Beach and Company) saying
that he expects, by mid-March, to be operating Newport Beach TV (NBTV). He expressed
opposition to this idea, adding that Newport Beach and Company has no expertise in television
operations.
Roy Englebrecht, Parks, Beaches and Recreation Commissioner and 2014 candidate for Council
District 4, discussed a previous Council action to remove all fire rings. He reported that the
Coastal Commission weighed in on the matter and passed it on to the Air Quality Management
District (AQMD), which subsequently voted to institute Rule 444. He indicated that he personally
measured the three fire rings at Big Corona that are closest to the shore and believed that they are
703 feet, 6 inches from the nearest residence, making them exempt from AQMD Rule 444. He
asked that Council consider moving six additional fire rings so that, this summer, there will be
nine functional fire rings at Big Corona.
Ken Goen expressed opposition to Duffy docks and utilities on the docks.
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XIV. (7RAL REPORTS FROM CITY COUNCIL ON COMMITTL+"_E ACTIVITIES
Council Member Henn reported that the Balboa Village Advisory Committee (BVAC) met and
considered finalizing its 2014 Work Plan and discussed the recommendations from the Urban Land
Institute (ULI) report that could be incorporated into the Work Plan.
XV. PUBLIC HEARINGS
11. Appeal of the Planning Connnission's Decision to Deny Variance No. VA2013-002 for
417 and 419 East Balboa. Boulevard (PA2013-086).
City Attorney Harp reported that the applicant has raised some issues relative to small
structures and whether the City's statutes that deal with non -conforming uses in the
application of a 50% rule is appropriate in all circumstances. He added that one issue that was
discussed before hearing the appeal is whether or not Council would like to revisit, how
non -conforming structures are dealt with in the Newport Beach Municipal Code. He reported
that the applicant has agreed to stay their appeal if Council will be revisiting the issue of
non -conforming structures.
Mayor Hill noted that this appears to be a real 'issue and wondered whether, in lieu of dealing
with variances, Council wishes to address the process to make determinations and resolve the
problem on a broader scale rather than on a case-by-case basis. He added that the applicant
has agreed that this would be a logical process to utilize.
Mayor Pro Tem Selich commented on his experience participating in re -writing two Zoning
Codes and stressed that it will not be easy. He believed that the current Code attempts to come
up with the proper balance related to a threshold where a structure needs to be changed and
not be allowed to continue as a non -conforming structure.
Council Member Henn believed that some allowance should be provided for instances in which
a structure becomes so small that the current Code will provide an inequitable result. He
agreed that it would be worthwhile to look into the matter, acknowledging that Council may
not come up with a perfect answer.
Mayor Hill opened the public hearing.
Gary Mobley, Attorney for the applicant, indicated agreement with staying the appeal. while
Council considers the matter, even though the process may take several months.
W. R. Dildine reported that, at 313 East Balboa Boulevard, is the twin to the subject building.
He reported that it is one of the better maintained buildings on the block and commented on a
notice of abatement served on the owner, which has been extended He added that the owner
currently has two commercial tenants and believed the two buildings are historical buildings.
He noted that the Tax Assessor's maps assume that the lots are rectangular. He reported that
he had his lots surveyed and that they are non -conforming and noted significant problems in
the area. He thanked Council for looking into the matter.
George Hajjar, owner of 47.4: East Ocean Front, believed that someone will always ask for a
variance and that it is not fair to keep changing the rules, noting that many people previously
appeared before Council to abide by those rules. He pointed out that reconsidering non-
conforming uses is a long process, the subject structure has served its purpose, the applicant
knew the conditions prior to purchasing the property, and the structure does not blend in with
the rest of the development.
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Hearing no further testimony, Mayor Hill closed the public hearing.
In response to Council questions„ City Attorney Harp reported that the matter will come before
Council as a separate item to consider a potential amendment to the non -conforming structure
Code section to determine if the 50% rule is appropriate on a global scale. Community
Development Director Brandt clarified that the focus will be to consider non -conforming small
structures.
Council Member Daigle requested and received confirmation that the matter will not be
isolated to the subject property, but a lot of different properties will be considered.
Motion by Council Momber Henn seconded b�Mayor Pro Tem Selich, to continue the
item indefinitely.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council
Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill
12. Uptown Newport Planned Community, Affordable Housing Implementation Plan
(AHIP) Amendment (PA2014-011), Located at 4811-4321 Jamboree Road.
Principal Planner Campbell provided an overview of the proposal, including background,
location, phases of construction, density bonus, affordable housing, and the Affordable
Housing Implementation Plan (AHIP) which the applicant is seeking to amend at this time
to construct the affordable portion in Phase 1. He reported that, in order to accommodate
their request, an amendment would be in order. He noted that staff has no objections.
In response to Council Member Petros' questions regarding plans submitted for Phase 1,
Principal Planner Campbell reported that there are no plans at this time, but there are
Conceptual Site Development Review Plans that the Planning Commission reviewed which
break up 12 acres of the project site into various building pads. He explained that the
developer is looking to build two buildings along Jamboree and that the affordable housing
units would be in those structures. He added that the project will be implemented later in
the summer.
Mayor Hill opened the public hearing.
Brian Rupp, The Shopoff Group, reported that, since the project's original approval by
Council, they have formulated. their specific business plan which will include the
development of two apartment projects along Jamboree and for -sale housing around the
Phase 1 park. He noted that, when Council approved the project, they were limited
regarding the number of units that could be developed in Phase I and that the business
plan now includes the development of those apartment units which will include
117 affordable units. Ile explained that the amendment would allow them to develop those
units in Phase 1 rather than staggering them between Phases 1 and 2.
Hearing no further testimony, Mayor Hill closed the public hearing.
Motion by Council Member Gardner, seconded by Mayor Pro Tern Selich, to adopt
Resolution No. 2014-18, A Resolution of the City Council of the City of Newport Beach
Approving an Amendment of the Affordable Housing Implementation Plan No. AH2O12-001
for the Uptown Newport Planned Community Located at 4311-4321 Jamboree Road
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(PA2014-011), finding that all significant environmental concerns for the proposed project
have been addressed in a previously certified Environmental Impact Report No. ER201.2-
001 (SCH No. 2010051094) and approving an amendment of the Uptown Newport
Affordable Housing Implementation Plan No. AH2012.001.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Pettus, Council Member Curry, Council
Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill
13. Newport Harbor Yacht Club Located at 720 West Bay Avenue (PA2012-091).
Community Development Director Brandt utilized a PowerPoint presentation and
discussed the efforts by the applicant team and City staff to look at a comprehensive
renovation of the property. She described the proposal and addressed location, relevant
applications, considerations, renderings, current Harbor views, and proposed Harbor views.
She noted that the proposed heights present no negative impacts to public views.
In response to Council Member Gardner's questions, Community Development Director
Brandt reported that the club currently has 900 members and that the operational plan
does not include, as of this date, increasing the membership. She noted that there is no
Condition of Approval limiting membership and that Council could consider adding one.
She indicated that the Parking Management Plan is based on the square footage of the
building and assembly area. She reported that there is one Condition of Approval that
limits the use of outdoor paging systems and that, if they want outdoor sound
amplification, they will need to go through the permit process. She stated that the parking
study provided background information in terms of available parking in the neighborhood
and that the analysis is based on off-street parking dedicated to use by the Yacht Club
which resulted in a 95 space deficiency. She presented conclusions of the parking study
relative to the day-to-day operations of the facility.
Council Member Henn noted he has been at the facility many times and that it is rare for
the parking lot to be full. He indicated that he is not concerned about growing the
membership and did not see a need to include a provision limiting membership.
Mayor Hill opened the public hearing.
Hearing no further testimony, Mayor Hill closed the public hearing.
Mayor Pro Tem Selich stated that this will be a terrific addition to the Harbor and
commented positively on the proposed architecture.
Motion by Council Member Petros, seconded by Mavor Pro Tem Selich, to a) find
that the project is categorically exempt from the California Environmental Quality Act
("CEQA") pursuant to Section 15302 of the CEQA Guidelines; b) adopt Resolution
No. 2014-19, A Resolution of the City Council of the City of Newport Beach Approving
General Plan Amendment No. GP2012-003 and Coastal Land Use Plan. Amendment
No. 2012-003 for Land Use Designation Changes and an Increase in the Development Limit
for the Newport Harbor Yacht Club Property Located at 720 West Bay Avenue (PA2012.091);
c) introduce Ordinance No. 2014-6, An Ordinance of the City Council of the City of Newport
Beach Approving Zoning Code Amendment No. CA 2012-006 for Zoning Designation
Changes and an Increase in the Development Limit for the Newport Harbor Yacht Club
Property Located at 720 West Bay Avenue (PA2012.091), and pass to second reading on
March 11, 2014; and d) adopt Resolution No. 201.4-20, A Resolution of the City Council of
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the City of Newport Beach Approving Minor Use Permit No. UP2012-016 and Planned
Development Permit No. PL2012-002 for a Replacement Yacht Club Facility for the
Properties Located at 720 West Bay Avenue and Rescinding Variance No. VA0863, Use
Permit No. UP0652, Use Permit No. UP1517, and Use Permit No. UP3645 for the Newport
Harbor Yacht Club (PA2012-091).
XVI. CURRENT BUSINESS
14. Mid -Year Budget Amendments: Update Certain Revenue Estimates, Increase Certain
Expenditure Appropriations, and Authorize the City Manager to Negotiate and Enter
into an Agreement with Motorola for the Acquisition of a Marine Safety Dispatch
System (C-5752).
Council Member Daigle recused herself front the item since she owns property within
500 -feet of the Marian Bergeson Aquatics Center.
Council Member Gardner referenced the 2013/2014 Mid -Year Budget Amendment Summary
and asked whether the Initial Start to Refuse Contract will require additional funds. City
Manager Kiff reported that it does not, but rather is programmed into the actual contract.
Council Member Gardner commented on the issue of reserves and asked regarding the
possibility of considering reinvesting them. She added that it has been discussed, but that the
City has no philosophy in relation to the matter and in the future, would like Council to have a
full discussion of the topic. City Manager Kiff reported that the matter will go before the
Finance Committee first and be built into the adoption of the budget.
In response to Mayor Pro Tem Selich's question, City Manager Kiff reported that the One -Time
Facilities Maintenance includes a series of smaller projects as requested by Department
Directors and involves maintenance in buildings, and the Additional Contribution to Facilities
Maintenance is not an expenditure of funds but involves the establishment of reserves for big
maintenance projects. He added that, as staff prepares the upcoming budget, consideration
will be given to items identified as deferred maintenance.
In response to Mayor Pro Tem Selich's questions, City Manager Kiff reported that the Locker
Room in the Marian Bergeson Aquatic Center has been carried over for approximately 3 years
with the School District contributing two-thirds and they are ready to begin, having sent the
City an invoice for one-third of the costs. Regarding the Reforestation Project, he reported that
this would be added to what is already allocated in this year's budget to get a jump start of the
coming year's budget and that discussions with staff will include expediting the process with.
the Parks, Beaches and Recreation Commission.
Jim. Mosher indicated that he thought this matter would have been reviewed by the Finance
Committee before presenting it to Council. He noted that the Item's recommendation includes
the creation of a new Facilities Maintenance Division within the Municipal Operations
Department, but believed that Council sets up Departments and Divisions, and the City
Manager only populates them with good employees and sees that the system functions. He
reported that the City Charter empowers Council, by ordinance, to create City Departments
and. Divisions. However, the current item is not an ordinance, but rather an action.
City Manager Kiff noted that this is the creation of a cost center, not a Department or Division.
Motion by Council Member Petros, seconded by Mayor Pro Tem Selich, to a) approve
Budget Amendment No. 14BA-032 that appropriates $12 million of General Fund unassigned
fund balance, $1.1 million from General Fund increased revenue estimates, and $1.2 million
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City of Newport Beach
City Council Regular Meeting
February 25, 2014
from other funds, including Tidelands Fund, IT Strategic Fund, and Lifeguard Headquarters
Fund; b) approve Budget Amendment No. 14BA-033 that records an increase to General Fund
revenue estimates of $2,821,196; c) approve Budget Amendment No. 14BA-034 that creates a
new Facilities Maintenance Division in the Municipal Operations Department (MOD). The
budget amendment transfers current facilities maintenance appropriations to the new division;
and d) authorize the City Manager to negotiate and enter into a Communications Systems
Agreement with Motorola Solutions (C-5752), Inc. for a Marine Safety Dispatch System
(800M Hz) to be installed at Lifeguard Headquarters with a not -to -exceed cost of $230,269.81.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council
Member Henn, Mayor Pro Tem Selich, Mayor Hill
Recused: Council Member Daigle
15. Priorities for 2014.
City Manager Kiff reported that the staff report included a spreadsheet of items suggested by
Council through goal -setting and other direction.
Council Member Henn recused himself from hearing the Re -Use of the Old City Hall
Site item since he has a business relationship with a business in Via Lido Plaza.
Mayor Hill recused himself from hearing the Mariner's Mile — Planning Zoning and
Circulation Changes item and the Balboa Boulevard from PCH to 22nd item since he
owns property within 500 feet of both sites. Additionally, Mayor Hill recused himself
from hearing the OCTA's PCH Corridor Study/Master Plan/Pedestrian Bridges item
and the Flashing Crosswalks, especially on Balboa Boulevard item as they are
undefined areas and he may own property within 500 feet.
Council Member Petros encouraged staff to move on the Mariner's Mile Citizen Advisory Panel
(CAP).
Bernie Svalstad, Chair of the Corona del Mar Business Improvement District, commented on
the item relative to MacArthur Boulevard and Pacific Coast Highway, noting that he requested
$500,000 in the budget for that project. He hoped that the matter would be check marked.
Motion by Council Member Gardner, seconded by Mayor Pro Tem Selich, to approve
the list of priorities for 2014, noting the recusals by Council Member Henn and Mayor Hill.
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council
Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill
16. Claims Settlement - C.W. Driver, Bohlin Cywinski Jackson, and City (C-4527(B)/C-
4021).
City Manager Kiff reported that the City has a substitute agreement, which was provided to
Council and the public counter in the vestibule, that points to C.W. Driver's assigning its rights
to file further claims against the architect, Bohlin Cywinski Jackson (BCJ), to the City,
including its subcontractors. C.W. Driver has indicated they do not have the capacity to do that
and that staff has proposed removing this.
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City of Newport Beach
City Council Regular Meeting
February 25, 2014
In response to Council Member Gardner's question, City Attorney Harp confirmed that the City
could pursue the amount of what the City would contribute to the settlement and added that
the amount that is paid pursuant to the agreement would be the amount that could potentially
be recovered if there was subsequent action against BCJ.
Jim Mosher discussed a previous Council practice in which it reviewed all the claims against
the City, but that it has not been the practice for 20 years. He believed there is a belated effort
towards transparency and commented on claims submitted by C.W. Driver totaling over
$9 million, but the amount shown in the details totals $8.2 million. He asked if all of the
claims are listed and indicated he does not know what the claims were for. He expressed
concern with the Ad Hoc Building Committee since they have never reported to Council. as to
what is going on with the contract and also commented on stop-payment notices. He hoped
that Council will ask for clarity and additional details.
Council Member Daigle commented on guarantees offered by C.W. Driver and expressed
concern that they did not meet their guarantee. She indicated she will not support the matter
and that C.W. Driver should be responsible for the entire claim amount.
Council Member Gardner agreed, but noted the City's potential liabilities.
Mayor Hill emphasized that these are claims that relate to change in scope and are not a C.W.
Driver responsibility.
Motion by Council Member Gardner, seconded by M,gyor Pro Tem Selich, to approve
the amended Settlement Agreement and General Release, in substantially the same form as
the staff report attachment, with C.W. Driver, in the amount of $2,399,430 (net new cost to
City of $2.19M).
The motion carried by the following roll call vote:
Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council
Member Henn, Mayor Pro Tem Selich, Mayor Hill
Nays: Council Member Daigle
XVIL MOTION FOR RECONSIDERATION - None
XVIII. ADJOURNMENT - 8:45 p.m.
The agenda for the Regular Meeting was posted on the City's website, on the City Hall
Electronic Bulletin Board located in the entrance of the City Council Chambers at
100 Civic Center Drive, and in the Meeting Agenda Binder located in the entrance of the
Citv Counril Chnmbprc nt. 100 Civie Center Drive on February 20, 2014, at 4:00 p.m.
City Clerk
Mayor
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