Loading...
HomeMy WebLinkAbout01 - MinutesSeptember 23, 2014 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session and Regular Meeting September 9, 2014 I. ROLL CALL - 5:00 p.m. Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill II. CURRENT BUSINESS SS1. Clarification of Items on the Consent Calendar - None SS2. Parking Management in Corona del Mar Council Member Gardner recused herself from this item since she lives within 500 -feet of Pacific Coast Highway. Deputy Community Development Director Wisneski provided a report including Council's identification of a need to better manage parking in the Village area and the retention of Nelson Nygaard to develop a plan. She addressed the formation of a sub - committee by the Business Improvement District (BID), as well as community outreach. She added that this item is on the regular agenda for adoption later this evening and deferred to Brian Canepa of Nelson Nygaard, for a presentation. Brian Canepa, Nelson Nygaard, provided a PowerPoint presentation to highlight existing conditions and summarized strategies and desired effects. He also addressed the study zones and key findings. In response to Council Member Curry's question, Mr. Canepa commented on the lack of parking efficiencies and shared parking being dependent on the use. Mr. Canepa continued with the presentation addressing the types of available parking and the need for enhanced management of the existing parking supply. He addressed short -term strategies recommended by the Planning Commission, including revising the parking code, extending time limits, adjusting pricing, and shared parking. In response to Council questions, Mr. Canepa addressed advantages of shared parking with lot owners and commented on specific impediments to shared parking agreements. Deputy Community Development Director Wisneski added that shared parking agreements eliminate reserved parking situations. Mr. Canepa addressed employee parking, restriping, increasing the bicycle parking supply, way - finding improvements and monitoring, and evaluation. He listed long -term strategies, including parking pricing, a resident permit program, remote shuttles and a valet program. In response to Council Member Petros' question, Deputy Community Development Director Wisneski confirmed that parking for certain uses or in situations where there are no parking agreements, must be on the same lot as the use for which it is intended. Council Member Petros commented positively on Nelson Nygaard's work, but expressed issues related to the proposed parking strategies. He added that, if the focus is on Corona del Mar, it must be reviewed at a Volume 62 - Page 32 City of Newport Beach Study Session and Regular Meeting September 9, 2014 more - granular level. He noted that work done here was based on data gathered in prior assessments. Additionally, it looks at the total available parking and makes certain assumptions throughout the entire Village. He observed that the predominance of turnover is one hour or less and that most of the trips going into the Village are single - purpose trips. He stated that many policies would lead the City in an improper direction, noting that 50% of the supply is on- street parking and the figures show that most of those are red or 90% or greater during peak hours, two blocks deep. This would seem to condone that it is alright for residents to endure that type of parking during those peak times. He indicated that he is unsure that this is appropriate and does not believe that enough work has been done to arrive at that conclusion. He indicated that, if it is going to be public parking, then the public should be responsible for it and hoped that the strategies would be modeled similarly to the City of Pasadena. He added that this study may not be right yet and listed elements in question. Mr. Canepa addressed the data used as the basis for the study, commented on attempts at looking at parking data by zone, and noted assumptions made. Council Member Curry expressed concern that property owners are not enthused about shared parking. He noted that they have the capability of entering into shared parking agreements already but are concerned with a government policy, as well as liability, insurance and maintenance issues. He is unsure that the report is ready at this time. Mayor Pro Tem Selich stated that he understands the blended -rate concept but expressed concerns with Conditional Use Permits where extra parking is required and noted that he has a problem regarding how it will work and whether it will be a fair distribution of the parking burden. In response to his inquiry regarding other cities where similar policies have been successful, Mr. Canepa stated that would include Sacramento, Ventura, and other Bay Area cities. He reported that parking requirements for restaurants peak through the day while other lots remain empty. Additionally, Mr. Canepa addressed commercial lots and the possibility of repurposing parking spaces where requirements decrease, as well as on the analysis of different scenarios. Council Member Henn reported that when he hears complaints about parking in Corona del Mar, they mostly involve the northern end of Corona del Mar. He agreed that a more - granular solution would be appropriate. In response to his question, Mr. Canepa reported that meters were considered in the long -term strategies. In terms of Pacific Coast Highway, he reported that there is not enough demand to justify installing meters. In response to Council Member Daigle's question regarding the success of the program in Pasadena, Mr. Canepa commented on the strategies and challenges in Pasadena. He added that they worked with private, on- street lot owners to open their lots, particularly in the evening. Bernie Svalstad, Corona del Mar BID, commented on major problems in the area, employee parking, and other flaws in the study. He stressed the need for revitalization and code assistance to allow better kinds of businesses. He added that the BID has identified some lots with the possibility of increased parking in certain spots. Jim Walker, The Bungalow Restaurant, Corona del Mar BID, indicated that current parking requirements breed inefficiency, and there are many properties that are in violation of the parking code. He added that there are lots that may satisfy the parking requirements, but are not being used, and believed that, by lowering the parking requirements, it would free up some of the unused lots. He commented on the business mix in Corona del Mar and added that there is no incentive or way for commercial businesses to comply with parking requirements. He suggested lowering parking standards and allowing other businesses to open up parking spaces that are not being utilized. Volume 62 - Page 33 City of Newport Beach Study Session and Regular Meeting September 9, 2014 In response to Mayor Pro Tem Selich's question regarding parking requirements for banks, Associate Planner Nueno reported that parking requirements for a bank/retail is 1 per 250. Mayor Hill commented on the need for better parking management and on the negative response that would result in telling people what to do. He suggested implementing incentives to encourage voluntary participation in shared parking agreements and reaffirmed that there is not enough data at this time for Council to make a decision on this. SS3. Parking Management in Balboa Village (PA2014 -016) Principal Planner Campbell provided a PowerPoint presentation, noting that Balboa Village parking is distinctly different than Corona del Mar as most is publicly - controlled. He addressed public outreach, parking management areas, the proposal for a parking management district, modifying parking codes, meter rates and timing, and the voluntary employee parking program. Proposals for the area west of the Village include controlling spillover effects of parking occurring through a resident permit parking program. In response to Council Member Daigle's request, Principal Planner Campbell pointed out landmarks in the area and respective borders. Principal Planner also detailed the residential parking permit program and results of a survey showing 68% in support. Council Member Gardner expressed concerns about parking issues moving to Balboa Island and suggested that the impact on the Island, especially around the ferry, needs to be considered. Council Member Henn reported that this is a holistic approach and that the commercial piece needs to be heard. Principal Planner Campbell addressed the Village Parking Management District, including location, uses in the area, incentivizing use of parking when it is available, and revitalizing the area by eliminating parking requirements for all the major uses with the exception of a few. He reported that the intent is to create designated places for employee parking and providing an incentive to keep them from parking in residential areas. He addressed suspension of in -lieu parking fees for nine existing businesses and changing metered rates. Additionally, he commented on commercial 2 -hour validation in off - street lots and resident off - season parking discounts in the Village. Council Member Petros noted that there are no residential spaces that would be affected by the change because of the partnership of the RP3 and this strategy. Principal Planner Campbell noted that the two areas work together, in concert, as a holistic approach and in response to Council Member Gardner's comment he noted the need to monitor the plan and make adjustments going forward around the ferry. In response to Mayor Hill's question, City Manager Ki£f stated that staff is seeking comments from Council and the public, and if Council believes the matter is ready, to set a public hearing. In response to Council Member Gardner's question, Principal Planner Campbell reported that discussions have not occurred regarding the possibility of the City underwriting the commercial validation program and addressed the purpose of the program. Council Member Henn noted that the issue was to provide the mechanism for a validation program and work out who will pay for it. Volume 62 - Page 34 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Joyce Faye Barnes voiced opposition to the residential parking permit program, noting that her home has no off-street parking and she has lived in her house for many years without parking difficulties. Deanne Schnabel expressed support of improvements, but does not support the elimination of parking regulations before a permit program is in place. She expressed her opposition to the expansion of ExplorOcean and provided a PowerPoint presentation illustrating parking in the area. She added that the expansion of ExplorOcean threatens to take summer congestion and turn it into a year -round congestion, commented on the need for a permit program, and addressed mooring permittees. Michelle Silver reported that parking problems occur during the day and she does not want to pay in order to park in front of her home. She added that, if a residential parking permit program is implemented, it should be Citywide and Council not be discriminatory to one particular area. Jim Stratton thanked staff for addressing some of the problems that have been brought up. He commented on the intensification of demand for parking in the area and expressed the opinion that the expansion of ExplorOcean will make the situation worse. He noted that multiple consultants have recommended a residential parking permit program for the area and suggested trying out the program but placing a cap on the cost of the parking permit. Additionally, he recommended adding a provision that the RP3 be evaluated in two or three years, noting that it does not need to be set in concrete. Andrew Miceli stated that he disagrees with findings 1 -3 of the report, adding that maybe three times in 20 years has he come home and not been able to find parking on his street. He spoke in opposition to the proposed residential parking permit program. W. R. Dildine reported that there are currently 20 legal, non - conforming structures with no parking and that others have non- conforming garages used for storage. He added that there is not enough parking; something needs to be done, and spoke in favor of implementing a residential parking permit program. Richard Dorn, mooring permit holder, stated that parking permits are a good idea, but suggested extending it to daylight hours. He requested that mooring permit holders be treated as residents. Ken Goen, mooring permit holder, asked that mooring permit holders be treated as residents Howard Hall noted that, as you get further from Adams Street, you get less support for a residential parking permit program as one is not needed. He spoke in opposition to the program and believed it will also impact the Newport Harbor Yacht Club. Council Member Gardner stated that she has never been a big proponent of permit parking and believed that the mooring issue could use more discussion. Mayor Hill agreed that this needs additional consideration as there is a possibility that too large of an area has been defined. Council Member Henn reported that there have been many meetings on this issue with a lot of outreach. He noted the need for a residential permit parking program. He added that Balboa Village is different in that it has metered parking throughout. He stated that spill -over is presently a problem as people avoid metered parking and park in residential areas which will get Volume 62 - Page 35 City of Newport Beach Study Session and Regular Meeting September 9, 2014 worse as time goes by. He agreed that the question about where to draw the line is a fair one and reported that, as intensification increases in the Village, the spill -over area will also increase. The boundary is arbitrary and he reported that, if Council has a view that it should be in a different location, it can be considered. He added that he is comfortable that the line was drawn at a reasonable point and addressed the proposed permit costs, noting that it is also an open point. Discussion followed regarding the cost of permits in other parking districts. Council Member Henn addressed the issue of moorings and suggested giving mooring holders who live aboard, the same number of permits as residents and that non -live aboard mooring holders be allowed two permits instead of four. There was consensus with moving the proposed program, forward. III. PUBLIC COMMENTS ,A, Jim Mosher reported that the County has released a schedule of the hearings it intends to hold on the John Wayne Airport Settlement Agreement. He noted that many are lobbying in support of higher - growth options and noted that he was unable to find any information regarding the hearings on the City's website. He hoped that Council will provide direction to staff to provide strong representation at the County hearings and that the City website will provide guidance if there is anything that citizens can do to help. Additionally, he commented on his opposition of Measure Y. Mayor Hill reported that Newport Beach and Company has not, nor will take, any position supporting any kind of expansion at John Wayne Airport. He stated that he has personally signed a letter on behalf of Council and the City making strong recommendation that the City's desired option is one that was negotiated in good faith and signed off by the Airport Working Group (AWG) and the City. City Attorney Harp announced that Council will adjourn to Closed Session to discuss the items as listed in the Closed Session agenda and read the titles. IV. CLOSED SESSION - 6:30 p.m. A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.5): 2 matters Property: 209 Washington St. and 608 East Balboa Blvd., Newport Beach 92661 Agency negotiator: Dave Kiff Negotiating parties: ExplorOcean Under negotiation: Instruction to negotiator regarding price and terms of payment. Property: 3300 Newport Boulevard, Newport Beach (Old City Hall) Agency negotiators: Mayor Rush N. Hill, II, and Mayor Pro Tem Ed Selich Negotiating parties: R.D. Olson Under negotiation: Instruction to negotiator regarding price and terms of payment. B. CONFERENCE WITH LEGAL COUNSEL (Government Code § 54956.9(d)(2) and (e)(1)): 1 matter C. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6) Volume 62 - Page 36 City of Newport Beach Study Session and Regular Meeting September 9, 2014 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 (LABEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); Newport Beach Professional and Technical Association (NBPTEA); and Part -Time Employees Association of Newport Beach (PTEANB). V. RECESS VI. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING VII. ROLL CALL Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tem Selich, Mayor Hill VIII. CLOSED SESSION REPORT - City Attorney Harp announced that Council Member Henn recused himself from Item FV.A relative to the 3300 Newport Boulevard property due to a business interest with an adjoining property owner. ix PLEDGE OF ALLEGIANCE - Council Member Nancy Gardner X. INVOCATION - Frank Carpenter XI. PRESENTATIONS Proclamation Declaring "World Alzheimer's Month" Chelsea Cox, representing the Alzheimer's Association, Orange County Chapter, commented on Alzheimer's disease as a public health crisis, noted that it is the fourth largest cause of death in Orange County, provided personal testimony of her experience with the disease, and noted the support of the Alzheimer's Association and listed the services they provide. She thanked the entire Council for acknowledging the work of the Alzheimer's Association in Orange County and in raising awareness of the disease. She invited the public to participate in the Walk Against Alzheimer's this coming fall. Mayor Hill presented her with a proclamation declaring September as "World Alzheimer's Month." Check Presentation by the Friends of the Library Library Services Director Hetherton introduced Jan Oats, President of the Friends of the Library. Jan Oats presented a check in the amount of $250,000. She commented on the impact of Library Services Director Hetherton in his effort to get the Friends involved with the City and its various departments. She thanked him and citizens of the City for their support. Council Member Henn commented on a friend, Stan Davies, who regularly buys books from the Library Book Store and after reading them, gives them back so that the store can sell them again. He commented positively on the dedication of the people involved. Volume 62 - Page 37 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Council Member Gardner commented on a recent visit to another city where their library book store was closed because of lack of volunteers. She added that this does not happen in Newport Beach and thanked the volunteers. Check Presentation by Newport/Mesa Pro - Literacy Jason Brady, President of the Newport/Mesa Pro- Literacy Advisory Board, thanked Council and the City for the support provided during the years. He provided information on the organization and addressed its mission. He presented a check to the City in the amount of $35,000 and invited Council and the public to attend the International Literacy Day celebration on September 11, 2014, from 10:00 a.m. until 12:00 noon in the Friends room in the Central Library. Additionally, he invited Council to enjoy a bottle of wine at Cucina, which generously donates to the program. Proclamation Declaring "Adult Literacy Awareness Month" Mayor Hill presented Mr. Brady with a proclamation declaring September as "Adult Literacy Awareness Month" and congratulated Mr. Brady and the organization for the fine work that they do. Newport Beach Sister City Association Liddy Paulson, President of the Newport Beach Sister City Association, introduced the Vice President of Okazaki, Japan Connie Skibba, the Vice President of Antibes, France Cherri Penne- Myers, and the Association Treasurer, Suzan Berkley. She provided information about the Association and distributed a booklet to Council with additional information. She addressed the impact the program has had on the City and citizens, and commented on cultural and educational opportunities provided by the Sister City Program and noted that it serves as a vehicle for economic development, trade, and tourism. Ms. Paulson provided highlights of events, accomplishments and programs, and commented on upcoming and future events. Mayor Hill commented on the group of ambassadors around the world representing the City and noted that none of the activities and events was at the City's expense. XII. NOTICE TO THE PUBLIC XIII. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Council Member Daigle reported that the City recently formed a new Crime Suppression Unit (CSU) and addressed an incident illustrating the focus of CSU, She reported that, so far, the unit has made 76 arrests and she provided statistics regarding the various crimes involved. She commented on a recent incident in Vista Bluffs regarding possible illegal drug activity where a male subject ran away, but was eventually located. Additionally, she noted that this one incident was the result of general information provided by a concerned citizen and encouraged residents to report suspicious activities. Council Member Daigle addressed the City's revenues and reserves, and commented on improvement projects. She reported on the extension of a bicycle lane near Corona del Mar High School and thanked the Public Works Department staff, as well as GMC Engineering. Council Member Henn reported that the Balboa Village Advisory Committee (BVAC) will meet on September 10, 2014, at 4:00 p.m, where it will be finalizing recommendations to Council regarding design guidelines, streetscape, and way - finding signs. In addition, at 6:30 p.m. at the old City Hall, there will be a town hall meeting for Underground Assessment Districts 111 and 116. Additionally, he announced that the Central Newport Beach Community Association will hold a candidates forum on September 22, 2014, at 6:30 p.m. at the American Legion. Volume 62 - Page 38 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Council Member Curry reported attending the League of California Cities Conference in Los Angeles, along with Mayor Hill, and commented on programs in which he attended. Additionally, he reported participating, along with Mayor Hill, in the last Concert in the Park where there were approximately 2,000 people in attendance. Council Member Gardner asked the City Manager to place on the next agenda, a question as to whether Council would like to address the issue of the abuse of the 30 -day lodging rule. Council Member Petros reported on Mariners Mile construction activities related to upcoming and ongoing Orange County Sanitation District (OCSD) projects that will be starting on September 15, 2014. Sewer lines will be replaced, through Mariners Mile and the project will take eight to nine months for the first phase and is scheduled to last approximately two years. He encouraged residents to be aware of the project and listed the OCSD's emergency phone number (714- 679 -2088) where residents may call with questions or concerns. Additionally, information to contact the OCSD can be obtained on the City's website. He reported that he has and will continue to attend meetings, on behalf of the City and representing the City's interests, to complete the project as quickly as possible and have the least affect on residents and businesses. Council Member Petros announced that the Newport Heights Hootenanny will be held at Cliff Drive Park on September 21, 2014, from 11:00 a.m. to 2:00 p.m. Additionally, he reported attending the Concert in the Park and commented positively on the event. Mayor Pro Tern Selich reported on the recent celebration of the end of summer on Balboa Island with the Taste of Balboa Island. He added that there was a competition of the participating restaurants and the new restaurant, Crocker's, won. Additionally, he reported participating in the Corona del Mar Car Classic on Sunday and commented positively on the event. He announced that Speak Up Newport will be hosting a candidate's forum on September 10, 2014, from 6:00 p.m. to 7:00 p.m. in the Community Room. Mayor Hill reported attending the Corona del Mar Car Classic and presented the Mayor's Award to a 1929 Phantom. Additionally, he commented positively on the last Concert in the Park and noted a suggestion to implement Movies on the Green. He reported on his attendance at the League of California Cities Annual Conference and commented on the seminars he attended. Mayor Hill requested that, for a future agenda, Council consider the possibility of looking at opportunities for naming rights to honor fallen Lifeguard Ben Carlson and asked staff to meet with the family and Lifeguards for suggestions. Council Member Gardner reported that, at a City Arts Commission meeting, the foundation founded in his honor is presenting a proposal for a sculpture of Ben Carlson at the Balboa Pier. Mayor Hill stated that he is thinking more in the line of something that would help to continue his legacy. Additionally, Mayor Hill commented on the status of the debt of the City and suggested having a Study Session at the next Council meeting to review the debt and whether it is under control. XIV. PUBLIC COMMENTS ON CONSENT CALENDAR - None Council Member Curry highlighted Item No. 13 (Acceptance of 2014/2015 State of California, Office of Traffic Study DUI Enforcement, Awareness and Traffic Safety Programs Grant), noting that it is a problem that deserves attention and commended the Newport Beach Police Department for pursuing the grant and for the diligent, effective enforcement in the City. Volume 62 - Page 39 City of Newport Beach Study Session and Regular Meeting September 9, 2014 XV. CONSENT CALENDAR A. READING OF MINUTES AND ORDINANCES 1. Minutes for the August 12, 2014 Study Session and Regular Meeting [100 -2014] 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 the City Clerk to read by title only. B. ORDINANCES FOR INTRODUCTION 3. Film Permit Fees Suspension for Six Months [100 -2014] Continue to the September 23, 2014 City Council meeting. 4. Ordinance Repealing Resolution No. 2013 -6 and Expressing Intent to Comply with California Senate Bill No. 7 Relating to Prevailing Wage Law for Locally- Funded Public Works Projects [100 -2014] Introduce Ordinance No. 2014 -15, An Ordinance of the City Council of the City of Newport Beach, California, Repealing Resolution No. 2013 -6 and Expressing Intent to Comply with Senate Bill No. 7 Relating to Prevailing Wage Law for Locally- Funded Public Works Projects, and pass to second reading on September 23, 2014. C. ORDINANCE(S) FOR ADOPTION V 5. Adoption of Updated Recycled Water Rates (Ordinance and Resolution) [100 -2014] a) Conduct second reading and adopt Ordinance No. 2014 -13, An Ordinance of the City Council of the City of Newport Beach Amending the Newport Beach Municipal Code to Add Chapter 14.13 Regarding Recycled Water Rates; and b) Adopt Resolution No. 2014 -78, A Resolution of the City Council of the City of Newport Beach Adding Recycled Water Rates to the City's Master Schedule of Fees, to remove the existing recycled water commodity rate and add the approved adjusted rates . D. CONTRACTS AND AGREEMENTS 6. Amendment No. One to Agreement for Weed Abatement Services (C -3494) [381100 -2014] Approve the amendment with Southland Landscape Maintenance for weed abatement services at various City -owned properties at an increased annual cost of $29,430, and authorize the Mayor and City Clerk to execute the amendment. Shore Cliffs Property Owners Association Request for Street Tree Up- Lighting and Electrical Appurtenances (C -5927) [381100 -2014] a) Waive Council Policy L -6, Private Encroachments in the Public Rights -of -Way, to allow up- lighting and electrical appurtenances for six (6) City -owned Coral street trees on Morning Canyon Road, contingent upon all conditions of the Encroachment Permit process being met; and b) Direct staff to enter into an Encroachment Agreement with the Shore Cliffs Property Owners Association, and authorize the City Manager and City Clerk to execute the Encroachment Agreement within one (1) calendar year upon receipt of approval. Volume 62 - Page 40 City of Newport Beach Study Session and Regular Meeting September 9, 2014 8. Lifeguard Headquarters Rehabilitation Project -Notice of Completion and Acceptance of Contract No. C4869 (CAP12 -0008) [381100 -2014] 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 acceptance by the City Council. 9. Newport Boulevard and 32nd Street Modification - Approval of Two Irrevocable Offer of Dedications of City Owned Parcels for Roadway Improvement Purposes - Contract No. C -4881 (CAP12 -0009) [381100 -2014] a) Approve two Irrevocable Offer of Dedications of City owned parcels located at 3300 Newport Boulevard and 3531 Newport Boulevard; and b) Direct the City Manager to execute the Certificates of Acceptance. Council Member Henn recused himself from this item due to a business interest with an adjoining property owner. E. MISCELLANEOUS 10. Planning Commission Agenda and /or Action Report for the August 21, 2014 and September 4, 2014 Meetings [100 -2014] Receive and file. 11. Budget Amendment to Accept a Check from the Friends of the Newport Beach Library and Appropriate Funds to the Library's Fiscal Year 2014/2015 Maintenance and Operation Budget [100 -2014] Approve Budget Amendment No. 15BA -009 to increase revenue estimates by $250,000 in Account 4091 -5892 (Friends of the Library Donations) and to increase expenditure estimates by the same amount in Division 4091 (Friends of the Library) and Division 4060 (Literacy Services). 12. Budget Amendment to Accept a Check from Newport/Mesa ProLiteracy and Appropriate Funds to the Library's Fiscal Year 2014/2015 Maintenance and Operation Budget [100 -2014] Approve Budget Amendment No. 15BA -010 to increase revenue estimates by $35,000 in account 4010 -5901 (Private Donations) and to increase expenditure estimates by the same amount in Division 4060 (Literacy Services). 13. Acceptance of 2014/2015 State of California, Office of Traffic Safety DUI Enforcement, Awareness and Traffic Safety Programs Grant #PT15114 [100 -2014] a) Authorize the City Council to accept a $350,045 "Selective Traffic Enforcement Program" (STEP) award granted to the Newport Beach Police Department by the OTS per Council Policies F -3 and F -25. Therefore, to comply with Council Policy F -3, City Council must formally accept the award of $350,045 and create a new appropriation to expend the money; and b) Approve Budget Amendment No. 15BA -011 increasing Police revenue estimates and expenditure appropriations by $350,045. 14. Unscheduled Vacancy on the City Arts Commission to Serve Until June 30, 2017 [100- 2014] a) Declare a vacancy on the City Arts Commission due to the resignation of Michaell Magrutsche; and Volume 62 - Page 41 City of Newport Beach Study Session and Regular Meeting September 9, 2014 b) Direct the City Clerk to post and publish a Special Vacancy Notice requesting that applications be submitted by noon on Friday, September 19, 2014, and schedule the appointment by the City Council for October 14, 2014. 15. Direction to Staff on Dog Parks, Harbor Permit Late Fees [100 -2014] Direct staff to: a) Ask the Harbor Commission to examine whether provisions of the code and resolutions should be changed regarding late fees or charges for harbor permits or uses at the Balboa Yacht Basin; and b) Ask the Parks, Beaches, and Recreation Commission to look at possible locations for more dog parks, including areas for small dogs, in the community. S23. Notice of Intent for the Vacation of a Portion of Buena Vista Boulevard Street Right - of -Way [100190 -2014] a) Set a Public Hearing on October 14, 2014 for the vacation of a portion of Buena Vista Boulevard public right -of -way; and b) Adopt Resolution No. 2014 -84, A Resolution of the City Council of the City of Newport Beach Declaring its Intention to Order the Vacation and Abandonment of a Portion of Street Right - of -Way (Buena Vista Boulevard) Adjacent to and Contiguous with 304 to 350 Buena Vista Boulevard and Fix the Time and Place of a Public Hearing. Motion by Mayor Pro Tem Selich, seconded by Council Member Curry, to approve the Consent Calendar; noting the recusal by Council Member Henn on Item 9. 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 XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR - None XVII. PUBLIC COMMENTS ON NON - AGENDA ITEMS Amy Walker reported that the Newport Beach Central Library recently informed her that they are currently reviewing the practice of banning customers for use policy violations and a new policy of suspension and appeals. She believed that it is illegal to ban anyone from a public library and discussed her situation. She took issue with Library staff and indicated she has the right to use the Library without Police or Library staff harassment. She provided her email address and Mayor Hill noted that someone will follow up with her regarding the matter. George Lesley announced the 53rd Annual Newport Beach Sandcastle Contest on October 5, 2014, at Corona State Beach, hosted by the Newport Beach Chamber of Commerce. He encouraged residents to attend and indicated that more information can be obtained at www.newDortbeach.com. Elaine Linhoff expressed the opinion that the ballot wording regarding Measure Y is misleading and has caused her to lose her respect for Council. She stated that Measure Y will increase development and traffic, and hoped that the voters will see through the wording and vote no on Measure Y. Lori Morris thanked Council Member Daigle for addressing the drug enforcement Crime Suppression Unit (CSU) and reported that she will be availing herself of that information. Additionally, she thanked Council Member Gardner for bringing up the 30 -day rule. Volume 62 - Page 42 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Lesley Miller thanked the City for cleaning the beach on the Peninsula and expressed concerns regarding parking at the Wedge. She suggested implementing a permit parking program in that area and increased signage indicating that there is no outlet. Additionally, she requested that Council consider a stricter trash ordinance. Jim Mosher believed that there is question as to whether the City Attorney provided an accurate description of Measure Y. He indicated that Measure Y will not be printed in the sample ballot, but the City Attorney invites the public to ask for a copy from the City Clerk's Office of the full text of the measure. He reported that he recently did so and noted that he received three pages of tables and twelve pages of maps with no explanations. He listed elements lacking in the full text, noting that it makes it difficult for the public to use it to verify any of the claims made by the City Attorney about the effects of a yes or no vote. He referenced the claims made in the measure regarding the effects of a yes vote and believed there are errors. He expressed the opinion that Measure Y is a lie. City Attorney Harp noted that a legal challenge was brought forward about the ballot question and the impartial analysis of the Measure, and that an independent judge with the Orange County Superior Court ruled that the language was fair, accurate, and impartial. Susan Skinner believed that Measure Y's ballot statement omits pertinent information and fails to address additional traffic trips planned for Fashion Island. She added that a voter would have to review the Environmental Impact Report (EIR) to learn about effects of the measure. She noted that is why she and Bert Ohlig filed a lawsuit which was dismissed because it did not meet the timeframe; however, she believed that the judge did not rule specifically as to whether it was or was not impartial. City Attorney Harp stated that Ms. Skinner's statement is not accurate and that the judge ruled on the procedural grounds and also on the substantive ground that it was impartial and that there was no issue with it being accurate or fair. Ms. Skinner reported that after dismissing the suit, the judge commented that the remedy for bad speech was more speech and encouraged her to bring the message to the voters. She addressed ethics and noted that elected representatives are responsible to their constituents and not just to The Irvine Company. She believed that the election benefits no one except The Irvine Company, expressed concerns that there is no effort on behalf of the City to explain what the voters are actually voting for, and indicated that Council has a moral and legal responsibility to present the ballot measure in an impartial way that allows people to understand what they are voting for. Nancy Skinner stated that the judge said that they do not like changing what cities do about ballot language. She reported attending a homeowners association gathering to explain Measure Y and stated that she told them that Council is made up of good people, but it has made a mistake on this matter. She suggested changing Greenlight so that it is stronger as it is supposed to let people know what triggers the initiative. XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Henn announced the 1st Annual Newport Beach Wine and Food Festival from September 19th through September 218t at the Civic Center featuring celebrity chefs. A charity fundraising event will be held at the Red O Restaurant on September 19. He encouraged the public to attend. Council Member Gardner announced the official opening of a sculpture exhibit on Saturday, September 13, from 2:00 p.m. to 5:00 p.m. in the Sculpture Garden. Volume 62 - Page 43 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Council Member Daigle commented on the extension of the John Wayne Airport (JWA) Settlement Agreement and reported that the EIR has been completed and the County is scheduled to take action on September 30, to certify and approve stipulations modifying the JWA Settlement Agreement. She commended the City Manager and City Attorney for spearheading the process. She listed meetings that will occur prior, including the upcoming County Planning Commission meeting on September 10, at 1:30 p.m. and the Airport Land Use Commission meeting on September 17. She addressed participation by many groups, including the community. City Manager Kiff added that information on the upcoming meetings will be placed on the City's website. He thanked Council Member Daigle, Council Member Curry, and Mayor Hill for their support. Council Member Petros reported that, on September 2, the Bicycle Master Plan Oversight Committee unanimously voted to bring the Bicycle Master Plan forward to Council. He added that this will be a $23 million program to encourage commuter and recreational cycling in town. He acknowledged Council Member Gardner and her efforts with the original taskforce that set the table to move forward on this issue. Additionally, he reported that it will be presented to Council on October 28 for consideration. =. PUBLIC HEARINGS 16. Community Development Block Grant (CDBG) Program Year 2013 -2014, Consolidated Annual Performance and Evaluation Report (CAPER) (C -5543) [100 -20141 Community Development Director Brandt introduced the item and reported that the City is a participant in the Federal Community Development Block Grant Program. One of the requirements is to provide an annual report which is included in Council's agenda packet. She noted the attendance of the City's consultant who is available to respond to questions. Council Member Gardner noted that, this year, the City exceeded its goals in almost every category and more people were served than originally thought. Mayor Hill opened the public hearing. There being no testimony, Mayor Hill closed the public hearing. Motion by Mayor Pro Tem Selich, seconded by Council Member Petros, to approve the Program Year 2013 -2014 CAPER; and direct the City Manager or his designee to submit the Program Year 2013 -2014 CAPER to HUD. 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 Tern Selich, Mayor Hill 17. Resolution Declaring a Level One Water Supply Shortage [100 -20141 Acting Municipal Operations Co- Director Murdoch addressed background, State actions, and previous Council action. He addressed key components of the State's regulations and the City's Municipal Code regulations addressing the State's concerns. He discussed the City's Water Conservation Ordinance, including set irrigation days and other restrictions within a Level One Water Supply Shortage. He also commented on exemptions and groups affected. He also reported that additional information may be obtained on the City's website and they are developing a flyer to distribute to all residents. Volume 62 - Page 44 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Mayor Hill noted that there are many members of the community that have signed up for auto pay and do not receive written statements. He addressed the need for a way to communicate with them and commented on issues that need to be addressed. Additionally, he reported that water audits are available. Acting Municipal Operations Co- Director Murdoch reported that any customer may contact the City to schedule a water audit. In response to Council Member Curry's notation that this is a State mandate, Acting Municipal Operations Co- Director Murdoch reported that the penalty for noncompliance is $10,000 a day. Council Member Daigle noted that the overarching goal is to provide stable water conditions. In response to her question, Acting Municipal Operations Co- Director Murdoch addressed restrictions for watering outdoor landscaping and noted that there is a warning process before violations are issued. Mayor Hill opened the public hearing. Joan Steen stated that she is aware of the drought conditions and a supporter of conservation. She reported that she has a hydroponic food garden and asked whether she would be exempt. Acting Municipal Operations Co- Director Murdoch indicated that any irrigation of food crops is exempt and a full disclosure will be provided to residents. She asked whether adjustments will be made with increases in households and he responded affirmatively and explained the process for considering exemptions and adjustments. Ms. Steen asked why the City is continuing to install new plantings such as on medians that need watering and have sprinklers that are spilling onto the pavement. City Manager Kiff noted that the City needs to adjust those sprinklers and added that the City is doing its best to remove turf grass and replace it with drought- tolerant landscaping and/or artificial turf. He encouraged the public to report cases of City sprinklers overrunning. Council Member Henn noted that the City will be installing artificial turf in the median on 21st Street. Cindy Koller reported that she has 90 -feet of sidewalk that is used daily by dogs, as well as many people at night. She asked if she will get in trouble for washing the sidewalks. Acting Municipal Operation Co- Director Murdoch noted that any use for public safety or health will be exempt. Mayor Hill cautioned against having water run into the storm drain. City Manager Kiff stated he will follow up with Ms. Koller on the matter. Dennis Baker commended Acting Municipal Operations Co- Director Murdoch and the Municipal Operations Department and noted that Newport Beach is a leader in conservation. He added that Council and staff have dedicated a lot of resources to assist the public through positive actions. 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 -79, A Resolution of the City Council of the City of Newport Beach Declaring a Level One Water Supply Shortage, setting customer usage to 100% of Base Amount (three -year moving average); and direct the City Clerk to publish Resolution No. 2014 -79 within (10) ten days of adoption of the Resolution. Volume 62 - Page 45 City of Newport Beach Study Session and Regular Meeting September 9, 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 Tern Selich, Mayor Hill 18. Corona del Mar Parking Management Plan (PA2013 -157) [100 -20141 Council Member Gardner recused herself from this item since she lives within 500 -feet of Pacific Coast Highway. Community Development Director Brandt reported that discussion of this matter was conducted during Study Session where comments from Council and the public were received. She stated that staff would like to take the plan back, do some additional work on it, and bring it back at a future Council meeting. She added that the matter was noticed as a public hearing so Council can provide additional comments at this time. Council Member Petros stated that he would like to see a scenario where the area within the residential areas is not considered available. Additionally, he believed that it is not appropriate for Council to reduce the parking rate if doing so means it is on the backs of the neighborhoods' parking supply. He added that, if the City is looking to revitalize the Corona del Mar area, then it must realize that it will attract more people to the area which will add more automobiles. Therefore, it is the City's responsibility to provide more parking for the area. Mayor Pro Tern Selich indicated that he would like to see further discussion regarding parking for restaurants. He added that he is not comfortable with the blended rate. Council Member Curry stated that he would like to see the City work with the parking lot owners, noting there seems to be a lot of resistance to the shared parking option. He added that the concept needs to be completely voluntarily between the interested parties as opposed to something that the City tries to impose on people. Mayor Hill opened the public hearing. Allyson Presto, owner of the Crow Bar Restaurant, expressed concerns with liabilities and maintenance issues related to shared parking. She distributed a copy of her written statement to staff. Bernie Svalstad, Chair of the Corona del Mar BID, stated that residents in Corona del Mar are not too interested in paid parking. He noted that there is need for additional information and consideration of the item. He reported that liability is one of the major problems related to shared parking, but stressed the need to make changes relative to the revitalization the area. Dennis Baker expressed concerns with the number of consultants used and reports that have been generated, and commented on the need for some kind of coordinated parking. Hearing no further testimony, Mayor Hill closed the public hearing. Motion by Council Member Curry, seconded by Council Member Petros, to continue the item to a future City Council meeting. Volume 62 - Page 46 City of Newport Beach Study Session and Regular Meeting September 9, 2014 The motion carried by the following roll call vote: Ayes: Council Member Petros, Council Member Curry, Council Member Henn, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill Recused: Council Member Gardner Without objection, Mayor Hill announced that Items No. 19 and 22 will be heard concurrently. 19. Lido House Hotel (PA2013 -217) and Former City Hall Complex Amendments (PA2012 -031) [731100 -2014] and 22. Ground Lease with Olson Real Estate Group, Inc., dba R.D. Olson Development for the Former City Hall Property located at 3300 Newport Boulevard (C5567) [381100 -2014] Council Member Henn recused himself from Items 19 and 20 due to a business interest with an adjoining property owner. Principal Planner Campbell provided a PowerPoint presentation on the Lido House Hotel and Land Use Plan Amendments for the old City Hall site. He addressed the project setting, overall site plan, hotel site plan, 32nd Street changes, project components, and amendment highlights. In response to Council Member Gardner's question regarding the basis for required parking, Principal Planner Campbell reported that parking includes guest and employee parking. Principal Planner Campbell continued presenting the revisions to Condition of Approval No. 32 and consistency with the Lido Village design guidelines. He addressed the ME, and related comments and responses. He deferred to the developer for additional details of the project. Bob Olson, R.D. Olson, provided a PowerPoint presentation with information about the company and its track record, investments, other similar projects, showcase hotels, the Lido House Hotel plan and their architect, WATG. Greg Villegas, Associate Vice President of WATG, project architect, discussed context diagrams, open space diagrams, tree analysis, Fire Department access, service access, valet stacking and parking, 32 "d Street parking, and the main concepts of the hotel design. Additionally, he addressed the floor plans, roof plan, elevations, and materials. Mr. Olson highlighted the hotel guest experience and operating platform, guest rooms and project benefits, including economics and community. He provided a summary of the presentation and addressed public outreach. Mayor Hill commented positively on the plan and the design. He addressed the public /private partnership concept and noted that this is the first long -term lease of this type of partnership in the history of the City. Council Member Gardner observed that, as part of the EIR, there are plans to encourage alternative modes of transportation. She commented on bike racks and asked if there will be showers and lockers provided for employees who bike to work. Mr. Olson reported that there are no showers in the employee break rooms. He referenced parking studies, noting that they do not want to be short on parking. Council Member Gardner referenced page 19 -101 and suggested changing the sentence to read, "Water should shall not be used to clean paved surfaces." Additionally, she requested requiring weekly street - sweeping. She asked regarding the availability of guest vans for transportation and Volume 62 - Page 47 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Mr. Olson reported that these will be available. Council Member Gardner also inquired regarding consideration of sea -level rise and solar parking roofs and it was noted that the issues were taken into consideration. Mayor Hill opened the public hearing. Hugh Helm, Lido Isle Homeowners Association, addressed a resident survey, respondents among which 98% opted for a hotel concept at the old City Hall site. He added that residents are not only supportive, but passionate about the project. He voiced support for the recent findings and conclusions of the Planning Commission regarding the EIR and zoning changes, and asked that Council endorse their recommendations. He expressed support for the ground lease and asked that Council approve the lease. He commented on the disputed alleyway property and urged the expeditious resolution of the dispute to prevent needless delays. He asked that Council do everything possible to expedite the project through the Coastal Commission and offered their assistance in whatever manner they can. Gordon Hart, representing Lido Partners, reported that his client has one major set of objections to the project related to the permanent elimination of the 32nd Street delivery access that has been used by the nearby shopping center since its existence. He referenced a conversation City staff had with one of their tenants and alleged that staff misunderstood what the tenant said relative to delivery trucks. He added that, under CEQA, it is the City's burden to provide substantial evidence to support its findings. He stressed that one informal conversation with one of their tenants which the City misunderstood, plus unsupported observations by the City's Engineer, do not constitute substantial evidence. Additionally, Mr. Hart believed that the staff report ignores Planning Commission testimony that their leases require tenants to use the 32nd Street access. He noted that they have provided extensive written comments about various legal objections and commented on the need for the City to conduct environmental review of future actions that are reasonably foreseeable consequences of an approval, adding that if the City loses its lawsuit against Lido Partners, additional CEQA review will be needed. He requested that the City keep the access open until after the outcome of the lawsuit is determined. City Attorney Harp reported that his office has fully analyzed the traffic impacts and turn radiuses of various sizes of trucks, which is included in the records. He commented on the possibility of modified projects in the future and noted that it is not what is before Council at this time. Council Member Petros addressed the comment that the burden of proof is on the City in a CEQA determination and noted that the issue at hand is the disposition of an easement. He asked if there is a CEQA issue with that particular issue. Assistant City Attorney Mulvihill reported that the City is trying to determine the effect of the easement. She stated that what is being suggested by the attorney for Lido Partners is that, by virtue of the unknown easement, it is creating impacts relative to traffic and others that need to be analyzed in the CEQA document before Council. It is staffs position that staff has fully analyzed all of the potential traffic impacts, both with this project and the closure of this access. If Lido Partners wants to pursue a CEQA claim, there will be a review of the EIR to see if all of the impacts have been analyzed. The suggestion is that staff has not analyzed traffic impacts, but staff asserts that it has. Savoy Bellavia stated that he has spoken with most of his neighbors and noted that they are all very supportive of the project. He reported that the biggest concern relates to parking and the elimination of the currently available public parking in the old City Hall lot. Additionally, with the improvements on Newport Boulevard, street parking will also be eliminated. He reported that the neighborhood has experienced an influx of parking by retail users and operators along Newport Boulevard and parts of Lido Village. He asked that Council consider the possibility of implementing permitted parking for residents in the area. Volume 62 - Page 48 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Mayor Hill pointed out that, with the purchase of the property on the corner of 32nd Street and Newport Boulevard, there will be the addition of a net amount of parking. Mr. Bellavia stated that, unfortunately, it will be paid parking and will not resolve the problems in the neighborhood. Sharon Boles, President of the West Newport Beach Association, spoke in support of the project. Edward Cook commended Council on the advancement of the project and spoke in support of the project. He commented positively on the ME, and believed that, relative to the Fritz Duda Company situation, it seems to be opportunistic rather than attempting to come to a resolution. He encouraged the City to be strong -willed about the situation. He hoped that Council will vote to approve the project. Russell Singer expressed concerns regarding parking impacts from the proposed project. Although he believes the concept is excellent, he stated that the proposed parking seems to be inadequate and will result in increased overflow parking in the surrounding neighborhoods which will result in a loss of business and reduced property values. He added that the City seems to have a set of double standards in terms of development parking requirements. He added that the EIR would have been better served to analyze the Montage Resort and believed that Council should not rush to judgment and approve this project when it does not have adequate parking and the parking requirements should not be relaxed. Additionally, he stated that dealing with this problem now, will cost much less than dealing with it later and asked that approval of the project be continued until adequate parking can be provided. In response to Mayor Hill's question, Principal Planner Campbell reported that a professional parking study was included with the EIR, there were no deviations for parking granted or considered, and that the analysis was sound. Council Member Petros stated that he was the parking consultant for the Montage Resort and commented on their parking situation. Cindy Koller expressed her appreciation to the City and asked that Council approve the Resolution and Ordinance so the matter can be brought before the Coastal Commission and revitalization can move forward for West Newport and the Lido area. She commented on the challenge to the EIR by Lido Partners and believed that it makes no sense to allow large, loud trucks next to hotel rooms at all hours of the day and night. She added that Lido Partners does not own that alleyway and took exception to their delaying the project. She encouraged Lido Partners to find a reasonable solution and move out of the way so that the entire community can benefit. Gary Mobley, attorney for Russell Singer's Company, stated that his client has no objection to the hotel project but objects to the amount of parking, the Conditional Use Permit, and the EIR on the basis that they do not adequately address the parking issue. He asserted that the EIR does not follow the recommendations of the parking study and the number of parking spaces. He believed that the parking study was significantly flawed as it based its findings on only two hotels and has not adequately considered staff parking and special events. Lori Morris noted that the residents of the area are in need of this project to revitalize Lido Village and the rest of the Peninsula, and commented positively on the developer, R.D. Olson. She believed that Lido Partners' opposition does not make sense and seems vindictive, and that they want to impede the beautification of the area for everyone else. She hoped that everyone will agree that the community deserves this much - needed enhancement that will revitalize the entire Peninsula and all of Newport Beach. Volume 62 - Page 49 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Sven Spar-ten, DJM Capital Partners, owners of Lido Marina Village, expressed support for the project, as well as the developer. He stated that a boutique hotel of this caliber will benefit the surrounding area. Ty Edwards expressed support for the project, but believed that there is insufficient parking. He added that the recommendations of the parking study are not being followed and commented on parking problems in the area. George Schroeder stated that he was concerned about parking, but was satisfied with the answers provided at the Planning Commission meeting. He added that it is not the obligation of this site to solve parking problems in other areas. He expressed confidence in R.D. Olson and spoke in support of the project. Referencing pages 19 -64 through 19 -65, Jim Mosher noted that the area is still considered mixed -use and not commercial/visitor serving. He noted that municipal facilities are not included in any new development limit and suggested that the amendment reflect the proper allocation of how much municipal facility was analyzed. He believed that the project is inconsistent with the Greenlight measure and commented on the designation of the facility as MUH -5 and reported that it has a different designation on the map, which is confusing. Hearing no further testimony, Mayor Hill closed the public hearing. Motion by Mayor Pro Tom Selich, seconded by Council Member Petros, to adopt Resolution No. 2014 -80, A Resolution of the City Council of the City of Newport Beach Certifying the Lido House Hotel Environmental Impact Report No. ER2014 -003 (SCH No. 2013111022) in Accordance with the California Environmental Quality Act and State and Local Guidelines for the Former City Hall Complex Land Use and Zoning Amendments Located at 3300 Newport Boulevard and 475 32nd Street (PA2012 -031); and the 130 -Room Lido House Hotel Located at 3300 Newport Boulevard (PA2013 -217). The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill Recused: Council Member Henn Motion by Mayor Pro Tear Selich, seconded by Council Member Petros, to adopt Resolution No. 2014 -81 (revised Condition No. 32), A Resolution of the City Council of the City of Newport Beach Adopting General Plan Amendment No. GP2012 -002, and Coastal Land Use Plan Amendment No. LC2012 -001, for the Former City Hall Complex Land Use and Zoning Amendments Located at 3300 Newport Boulevard and 475 32nd Street (PA2012 -031); introduce Ordinance No. 2014 -16, An Ordinance of the City Council of the City of Newport Beach Approving Code Amendment No. CA2012- 003 for the Former City Hall Complex Land Use and Zoning Amendments Located at 3300 Newport Boulevard and 475 32nd Street (PA2012 -031), and pass to second reading on September 23, 2014; adopt amended Resolution No. 2014 -82, AResolution of the City Council of the City of Newport Beach Approving Site Development Review No. SD2014 -001, Conditional Use Permit No. UP2014 -004, and Traffic Study No. TS2014 -005 for the 130 -room Lido House Hotel Located at 3300 Newport Boulevard (PA2013 -217), including the changes requested by Council Member Gardner; and direct staff to develop a City program supporting lower -cost visitor accommodations. Volume 62 - Page 50 City of Newport Beach Study Session and Regular Meeting September 9, 2014 The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill Recused: Council Member Henn Motion by Mayor Pro Tern Selich, seconded by Council Member Curry, to find that the draft ground lease is consistent with proposed hotel project analyzed in the Lido House Hotel Environmental Impact Report No. ER2014 -003 (SCH No. 2013111022), the approved Site Development Review No. SD2014 -001, and other related development entitlements; no further environmental analysis is required or necessary; and adopt Resolution No. 2014 -83, A Resolution of the City Council of the City of Newport Beach Approving and Authorizing the Mayor and City Clerk to Execute a Ground Lease with R.D. Olson Development to construct a 130 -Room Hotel at the Former City Hall Property located at 3300 Newport Boulevard. Council Member Curry noted that this is another historic day and suggested celebrating it as a community. He added that there are people trying to sue and get money out of the project, and by either stopping it or delaying it; however, the City needs to take its time to ensure that all documents are in order. In response to Council Member Daigle's question, Council Member Curry stated that the idea that the City can sell the site to pay its debt is not valid as the proceeds would not make an appreciable dent. Additionally, it would gut the ability of the City to fulfill its Facilities Finance Plan and noted that it would be a recipe for financial disaster and for the aborting of many capital projects in the City. Mayor Hill commented on opportunities for public /private agreements and noted that this asset of the City is being converted into an asset of perpetual revenue for the life of the project and the lease. He noted that this is an exciting opportunity and that it is money that can be used for deferred maintenance, additional capital facilities, and is an investment that lasts forever. Mayor Pro Tern Selich thanked Mr. Olson and his team for the project and expressed his excitement about it. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member Daigle, Mayor Pro Tern Selich, Mayor Hill Recused: Council Member Henn 20. 191 Riverside Avenue Land Use and Zoning Amendments (PA2013 -210) (100 -20141 Planning Manager Alford presented a PowerPoint presentation, highlighting the details of the project, location, proposed amendments, surrounding area, issues related to traffic, parking, height, and the future use of the postal facility. He addressed land use and zoning, results of staff analysis, and traffic. In response to Council Member Petros' question, Planning Manager Alford reported that average daily trips (ADT) related to the existing Post Office were arrived at by rights, not actual counts. Council Member Petros reported that the area has not operated as a Post Office for a number of years and believed that the actual trip generation is much less and that the ADT increase would trigger a traffic study. Planning Manager Alford reported that the Traffic Phasing Ordinance (TPO) would be triggered with an actual development. Volume 62 - Page 51 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Planning Manager Alford addressed parking, height, examples of the facility with a 26 -Foot height limit, and the future of the Post Office facility. He added that the plan was just received by staff and shows the layout under the proposed improvements. He addressed next steps if the project is approved. Marice White, Mariner's Center, reported that the initial request was made over a year ago from the Postal Service that they wanted to downsize but relocate within the same center. She added that they already have their retail operations up and running. She noted that the request at this time is a land -use change only and not a project. A specific project would be presented in the future. In addition, they will be updating their facade, paint and landscaping. She addressed other updates to be made within the center and discussed proposed elevations, community meetings, and parking. In response to Council Member Curry's question regarding whether the neighbor's issues with parking have been resolved, Ms. White noted they have not been resolved. In response to Council Member Gardner's question, Planning Manager Alford reported that any mixed -use project coming forward will be required to go through the site - development review process and will need to be approved by the Planning Commission. In response to Council Member Petros' question regarding diagonal parking spaces that run along the westerly boundary, Ms. White reported that three of them are under the sole discretion of the applicant. Council Member Petros reported that signs have been installed recently indicating that they are all for Mariner's Center. A representative of the owners of Mariner's Center M2, LLC, reported that signs were erected pursuant to the easement and there are 27 spaces designated to the current land owner. The adjacent land owner has approximately seven parking spaces. She addressed the location of the seven spaces. Mayor Hill opened the public hearing. Tim McFarland, representing the owner of Watch Expo, reported that the reserved parking spaces have all been designated, unlawfully, for the Mariner's Center. He noted that parking is a major issue in that center and asked that Council direct staff to do a parking study to evaluate the parking situation. He added that his office is in the process of filing a legal action related to the parking dispute. He indicated that there is a parking agreement between the two property owners since 1960 and previous owners have all complied with it. He reported that his client's business has been affected by the new parking signs and asked that Council consider the project as a whole rather than providing piecemeal approvals for land use. Jim Mosher commented on previous considerations, including a draft resolution for denial and believed that the reasons for denial are still valid. He referenced a letter on Mobilitie, LLC letterhead and commented on their sensitivity on another project. Brad Wong, General Partner of WD2 Properties, distributed a handout and spoke in opposition to the zoning changes, noting that it would exacerbate a parking problem that already exists in the Mariner's Center. He noted that parking is governed by a declaration from 1979 establishing parking easements. The previous property owners created the agreement because there was a parking shortage in the center and there continues to be one today. The reciprocal parking agreement helps, but does not eliminate the parking shortage in the center. He added that there are 31 parking spaces in total and that the agreement specifies their location. He noted a dispute between the property owners regarding the parking locations for each and complained about the installation of illegal reserve parking signs on his property without his knowledge or authorization. Volume 62 - Page 52 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Council Member Gardner asked regarding the inclusion of a termination clause in the agreement. Mr. McFarland reported that the trigger for termination is "redevelopment" and the term is not defined. In order to cancel the agreement the applicant has cited redevelopment of the property. Discussion ensued regarding the Hooten and Riverpoint properties, and the reciprocal parking spaces that are now reserved parking spaces. In response to Council Member Henn's question, Planning Manager Alford confirmed that the site is under - parked, in total, and that it is non - conforming. Steven Vensand, O.D., stated that he currently leases space from Mr. Wong and reported that there was no indication in his lease that he could not get a use permit because of inadequate parking. He referenced the declaration that sets aside parking for Mr. Wong's property and commented on the illegal installation of parking signs in parking areas violating the declaration and situated in parking spaces that do not belong to Mariner's Center. His patients suddenly have no place to park and the Mariner's Center landlord is adversely impacting his business. He reported that Debra Dressler of the City's Planning Department looked at the square footage and indicated that there is inadequate parking. He added that he has a letter from the City Traffic Engineer stating that Mariner's Center signs do not comply with the City's Municipal Code. In response to Council Member Gardner's question, Mr. Vensand reported calling the Police Department who advised him that they need to take the owners of Mariner's Center to court to have the signs removed. In response to Council Member Gardner's question, Community Development Director Brandt reported that the City has a Sign Code that it enforces. She added that this matter is just being brought to staff s attention and that staff will follow up on the matter. Council Member Henn noted that it is not Council's purpose at this point to fix parking disputes. Council's consideration at this time has to do with the land use change before it. Council Member Gardner stated the parking is an issue that the City needs to discuss. Council Member Daigle noted that redevelopment is not defined in the agreement. Community Development Director Brandt noted that parking is a relevant topic and the fact that the existing center is legally, non - conforming to the Zoning Code allows it to continue operation in their current state. When a development is proposed with increased intensity or adding square footage, staff would address the change in parking demand and address the need for additional parking. The need for parking would be evaluated if there is a change in development or tenant. In response to Mayor Hill's question, Community Development Director Brandt reiterated that there is no development plan proposed with this application. In response to Council Member Daigle's question, Community Development Director Brandt reported that it is not uncommon for a concurrent application as one cohesive package. This is unusual, but not an unfeasible alternative. A representative of China Palace Restaurant reported that the area is about 26 to 30 spaces under - parked. He commented on customers of other retailers parking in their spaces and that every business surrounding Mariner's Center has had multiple altercations with the owner. He added that he has threatened to shut China Palace Restaurant down and is bullying his way to get what he wants. Hearing no further testimony, Mayor Hill closed the public hearing. Volume 62 - Page 53 City of Newport Beach Study Session and Regular Meeting September 9, 2014 Marice White, applicant, reported that she cannot speak to the parking as she is not privy to the agreements. She clarified that the reason they are asking for the GPA, LCP, and zone change, and not an entire project, is that the Coastal Commission will not let them present everything at once. Council Member Petros observed that the action before Council is a legislative action on the land use. He noted that Ms. White is also associated with the Banning Ranch project where a development was presented to Council. He added that it is more likely that Council would have a project to consider. That is why he started to probe into the matter as he wanted facts to be able to support the action. As it stands, he stated that he is uncertain about the traffic impacts and noted that, at the end of the day, these are people that will need to get along. However, if the actions of the applicant are any indication of the type of relationship that Council would be complicit in, he indicated that he wants no part of it. He, therefore, suggested that Council deny the application. In response to Council Member Daigle's question, City Attorney Harp addressed the difference between denying with or without prejudice. Motion by Council Member Curry, seconded by Council Member Petros, to adopt Resolution No. 2014 -77, A Resolution of the City Council of the City of Newport Beach Denying without Prejudice General Plan Amendment No. GP2013 -002, Coastal Land Use Plan Amendment No. LC2013 -003, and Code Amendment CA2013 -007 for Property Located at 191 Riverside Avenue (PA2013 -210). 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 Tern Selich, Mayor Hill XX. CURRENT BUSINESS 21. A Lease Agreement Between the City of Newport Beach and Pacifica Christian High School - Orange County, Authorizing the Lease of the West Newport Community Center at 883 West 15th Street for a Future High School (C5928) [381100 -2014] Motion by Council Member Curry, seconded by Mayor Pro Tern Selich, to approve and authorize the Mayor to execute a ten -year lease agreement with an annual rent of $289,054.80 per year, with reductions for the City's continued use of the facility, and further adjusted annually by the Consumer Price Index (CPI), with Pacifica Christian High School - Orange County; and approve a waiver of City Council Policy F -7 based on the findings contained in the staff report and in the Lease Agreement. In response to Council Member Gardner's question regarding signage, Community Development Director Brandt reported that the signs would need to comply with the City's Code. 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 XXI. MOTION FOR RECONSIDERATION - None Volume 62 - Page 54 City of Newport Beach Study Session and Regular Meeting September 9, 2014 NMI. ADJOURNMENT- 10:58 p.m. The agenda for the Study Session, Closed Session, and Regular Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on September 4, 2014, at 4:00 p.m. The amended agenda for the Study Session, Closed Session, and Regular Meeting was posted on the City's website and on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive on September 5, 2014, at 4:00 p.m. Recording Secretary Volume 62 - Page 55