HomeMy WebLinkAbout09/23/2014 - Study Session / Regular MeetingMINI
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City Council Minutes
Study Session and Regular Meeting
September 23, 2014
I. ROLL CALL - 5:00 p.m.
Present: Council Member Gardner, Council Member Petros, Council Member Curry, Council Member
Henn, Council Member Daigle (arrived at 5:31 p.m.), Mayor Pro Tem Selich, Mayor Hill
II. CURRENT BUSINESS
SSI. Clarification of Items on the Consent Calendar
Council Member Petros referenced Item 5 (Newport Coast Community Center Stage Remodel
Project - Completion and Acceptance of Contract No. 5540) and wanted to ensure that resolution
with the contractor is wrapping up and that all the remedies are being undertaken. Public
Works Director Webb noted that staff has assessed liquidated damages, addressed challenges
with the contractor, and the matter has been concluded.
Mayor Hill noted that Item 6 (San Miguel Park Restroom Building and Picnic Structure
Replacement Project - Completion and Acceptance of Contract No. 5541) was completed under
budget and ahead of schedule.
SS2. Update on Major Park Projects - Marina Park and Sunset Ridge Park
Public Works Director Webb provided a PowerPoint presentation to update Council on the two
major park projects. Regarding Marina Park, he discussed the project's background, the site
plan, details about the phases and milestones, and LEED Certification.
Council Member Gardner reported that the Green Building Guideline Committee believed that
limiting the building to a LEED certification was not necessarily the goal, but rather the
important thing was to meet the standards.
Public Works Director Webb addressed the phases and milestones, the Girl Scout Leadership
Center, highlights of the project schedule, and the budget.
Regarding Sunset Ridge Park, Public Works Director Webb addressed park amenities, before
and after grading, storm drain and various utilities, restrooms and the children's play area,
passive park features, the fields, view along Superior Avenue, the project schedule, and project
cost.
Council Member Henn noted that the cost does not include the money spent for acquiring the
land. Brief discussion followed regarding the percentage of the contingency construction funds
that were spent.
Council Member Petros noted that all this information is on the City's website on a real time
basis and commented positively on the City's ability to deliver on very significant projects.
Council Member Henn commented on the strong financial position of the City, which enables the
investment in public value and in the improvement of quality of life in the City. He commented
on the benefits of using funds to pay for these projects rather than pre - paying the City's debt.
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Council Member Curry agreed with Council Member Henn and commented positively on the
City's financial status.
SS3. Pension Progress, Debt Service, Bond Ratings
Finance Director Matusiewicz provided a PowerPoint presentation, addressing how City funds
facilities projects would not be possible without issuing debt, reasonable debt as part of the City's
history, how rating agencies view the City, and debt affordability.
Council Member Petros commented on the City's increased revenues and requested clarification
regarding how revenue is generated in the City. City Manager Kiff affirmed that revenue has
increased and that it is not due to specific actions of the City in terms of a tax levy and listed
projects that have served to increase revenue in the City.
Council Member Petros noted that the economic health of the community and vitality of
businesses have helped in increasing revenue for the City.
Finance Director Matusiewicz reported that continued investment in the community has
increased property values and that assessed property value is the number one source of revenue
for the City.
Council Member Henn added that the City charges fees for services it provides, including fees for
user - demand services, which are net neutral, and fees for services such as building plan checks,
which are cost - based. He reported that, when fees increase, they are generally related to more
activity.
Council Member Curry noted that, when the City adjusts fees, it is based on an analysis of costs
and that, if fees are not adjusted periodically, all City taxpayers end up subsidizing some of the
taxpayers in the City.
Mayor Hill added that the City is on a rolling schedule to look at fees every three years.
Finance Director Matusiewicz further addressed reasons for not retiring the Civic Center debt
now.
Council Member Curry noted that some residents are suggesting that the City sell assets to pay
off debt. Finance Director Matusiewicz reported that financial advisors do not recommend
paying debt off early. Council Member Curry noted that the City would sacrifice approximately
$44 million if it were to do so.
Finance Director Matusiewicz reported that the Civic Center project cost $126 million.
Council Member Curry affirmed that the entire Civic Center cost was $126 million and that the
City Hall building was $67 million. He indicated that the other costs were due to the Library
extension, the parking garage, the Civic Green, grading, the Park, the training /emergency
center, and the Community Room. He commented on the vision of certain Council candidates
relative to the Civic Center project.
Finance Director Matusiewicz continued with the presentation, noting that some people have
added all future debt payments and have lumped that to equate to a debt of $232 million. He
stated that this is more political than fact -based as it ignores the time value of money. He
provided an example in terms of the disparity between future value and present value of money.
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Study Session and Regular Meeting
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City Manager Kiff discussed the City's focus on pensions, addressing the impact of investment
losses, the unfunded pension liability trend, pension progress and costs and employee
contributions then and now.
In response to a question by Mayor Hill, Finance Director Matusiewicz reported that the $7.4
million of employee contributions is not included in the City's revenue base.
In response to Council Member Daigle's question, Finance Director Matusiewicz explained why
past employees did not pay into their pensions.
City Manager Kiff continued detailing pension progress. He provided historical perspective
regarding unfunded liabilities and the City's award from the Orange County Taxpayers
Association for pension reform.
Council Member Henn noted that amortization periods are well below the maximum allowable
amortization periods.
City Manager Kiff addressed other steps that can be taken by the City.
Council Member Henn commented on the City's efforts at thoughtful outsourcing and
commented on the City's obligations regarding retired City employees. City Manager Kiff added
that employees are paying a share of the retired employees' obligations, which is making it
challenging to obtain top employees.
Council Member Curry noted that it is being suggested that the City sell revenue - producing
assets and use those proceeds to pay off its debt, including pension obligation debt. He pointed
out that this carries the risk of market performance causing the debt to reappear.
In response to Council Member Gardner's question, City Manager Kiff addressed impractical
and illegal issues regarding pensions and options for new hires.
Council Member Daigle expressed concerns with PGRS being an unreliable financial partner and
asked about long -term strategies.
City Manager Kiff reported that the City is not in anyone else's financial pool and that the City
keeps informed as to its investment approach and who it is hiring as investors and actuaries. He
addressed a discretionary payments option and stated that staff believes there is great value in
keeping the community looking great which, in turn, helps keep community property values
high.
In response to Mayor Hill's request, Finance Director Matusiewicz addressed the makeup of the
Finance Department and the quality of consultants. He added that the Finance Committee
helps the City in developing higher level policies that guide actions moving forward. City
Manager Kiff added that Council has adopted a series of financial Policies that help the City in
its actions moving forward.
Council Member Henn commented on his experience in Finance and believed that anyone who
claims that the spending in Newport Beach is out of control is wrong. He stressed that the City
is in very sound financial condition and is very carefully managed in order to maintain its
standing.
Council Member Daigle emphasized that the City reinvests back into the community
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Mayor Hill pointed out that the City's property values increase without the need to raise taxes
and noted that relieving City building fees for residential rehabilitation has generated $15
million in renovations within the City, which has employed individuals and created an increase
in property and sales taxes.
Jim Mosher referenced City Council Policy A -6, relative to placing items on agendas and on
voting to allocate staff resources. He commented on the upcoming election and candidates
questioning the City's financial condition. He believed that discussing this matter at this time is
a campaign stunt and questioned whether this is a proper use of public funds.
III. PUBLIC COMMENTS
Jim Mosher commented positively on the archived Council Meeting videos on the internet. He also
discussed Measure Y, the Irvine Company's entitlements at Newport Coast, and on the lack of a report
regarding its status. He added that he is assuming that Measure Y is a lie and indicated he will vote
against it.
City Attorney Harp announced that the City Council will adjourn to Closed Session to discuss
the items as listed in the Closed Session agenda and read the titles.
IV. CLOSED SESSION - 6:14 p.m.
A. CONFERENCE WITH LEGAL COUNSEL
EXISTING LITIGATION
(Government Code § 54956.9(d)(1)): 2 matters
Crystal Morales u. City of Newport Beach, et al.
Orange County Superior Court Case No. 30- 2012. 00606450 -CU -PO -CJC
City of Newport Beach u. Lido Partners, et al.
Orange County Superior Court Case No. 30- 2014 - 00715029 -CU -OR -CJC
Council Member Henn recused himself from this item since he has a business relationship
with a business in Via Lido Plaza.
B. CONFERENCE WITH LEGAL COUNSEL
ANTICIPATED LITIGATION
(Government Code § 54956.9(d)(2) and (e)(1)): 1 matter
Mayor Hill recused himself from this item due to a business interest.
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);
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City of Newport Beach
Study Session and Regular Meeting
September 23, 2014
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 Tern Selich, Mayor Hill
VIII. CLOSED SESSION REPORT — Assistant City Attorney Torres reported that Mayor Hill recused
himself from Item IV.B due to a business interest.
IX. PLEDGE OF ALLEGIANCE — Council Member Curry
X. INVOCATION — Melinda Blackman, Harbor Christian Church
XI. PRESENTATIONS
Presentation Regarding Surfboards on Parade
Jeff Snow, Board Member of the Rotary Club of Huntington Beach and Founder of Surfboards on
Parade, commented on the organization and provided a brief history of surfboarding in California. He
introduced the Surfboards on Parade team and thanked the City for its goodwill, community spirit and
support.
Scott Smith provided information regarding the concept of Surfboards on Parade and the collaboration of
art and surfing.
Jodi McKay announced artist Michele Leal, the artist who designed the displayed surfboard.
Additionally, she announced the upcoming "Night of a Million Waves Gala" on October 11, 2014, at the
Waterfront Hilton Resort, where many surfboards will be auctioned as fundraising for Skin Cancer
awareness. She encouraged residents to visit www.surfboardsonparade.org for additional information.
A speaker with the Hoag Hospital Foundation reported that all proceeds from the event will benefit the
Hoag Cancer Institute's new melanoma program.
Roger's Gardens "2014 California Friendly Garden" Contest Winner
Ron Vanderhoff, Vice President of Roger's Gardens, provided a PowerPoint presentation regarding the
2014 California Friendly Garden contest winner, Mia Alexis. He provided information regarding the
contest, noting that the City is a stakeholder in it and addressed its goals. He presented photos of the
Alexis Family's garden, commented on features that make the garden self - sustainable, and introduced
the family.
Mia Alexis commented on the inspiration for their garden, noting that they have created a mini eco-
system.
Newport Beach Public Library Foundation Check Presentation
Library Services Director Hetherton introduced Toby Larson from the Newport Beach Public Library
Foundation Board who presented a check to Mr. Hetherton for $224,000.
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Mayor Hill thanked the Foundation and acknowledged the work that it does in support of the Library
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 displayed photos and reported on activity occurring along the Back Bay and
Ford Road to make bicycling and walking safer for everyone. She also discussed the completed
construction of a buffered bike lane, reported that others will be added, and addressed benefits,
including separation of cyclists, walkers, and motorists. Additionally, she reported that a sign program
will be considered for the area, as well as the possibility of installing a surface that will be comfortable
for walkers and runners. She thanked Council Member Petros and staff for their work on this project.
Council Member Henn reported positively on the 1st Annual Newport Beach Wine & Food Festival and
commended the organizers for their work. He reported attending a meeting for Assessment Districts
111 and 116, and explained an innovative proposal by staff to move forward with an expanded
assessment district that will result in the take -down of almost all of the utility poles on the Balboa
Peninsula. Additionally, he reported attending the Civic Center Art in the Park Grand Opening, the
Lido House Hotel lease signing, and the Central Newport Candidate Forum. He announced a meeting of
the Balboa Village Advisory Committee (BVAC) on October 8, 2014, at ExplorOcean and invited
residents to attend and express their views on the revitalization project.
Council Member Curry reported attending the exhibition for the Art in the Park, as well as the lst
Annual Newport Beach Wine & Food Festival held at the Civic Center. He commented positively on the
event and highlighted how the Civic Green has been used as a gathering place for the community and
congratulated the org mizers of the event. He commented positively on the Costa Mesa "Feet to the
Fire" debate and invited the community to attend the Newport Beach "Feet to the Fire" debate on
October 1, 2014, at the OASIS Senior Center.
Council Member Gardner announced a meeting of the Environmental Quality Affairs Committee
(EQAC) on September 30, 2014, at 6:30 p.m. in the Community Room where they will finalize their goals
which will be presented to the City Council.
Council Member Petros thanked Council Member Daigle for her leadership in the Back Bay issue. He
reported attending the 2nd Annual Hootenanny in the Heights and commented positively on the event.
He noted that residents of the Heights are very interested in pursuing an assessment district for
undergrounding utilities in the area.
Mayor Pro Tem Selich reported attending the Art in the Park Grand Opening hosted by the City Arts
Commission and provided slides of some of the sculptures. He noted that this is a milestone for the arts
in the City and commented positively on the event.
Mayor Hill commented on his floating dock initiative which was turned over to the Harbor Commission
for their evaluation. He noted that the Harbor Commission conducted a thorough evaluation of
alternatives and issued a survey to the public, which came in that ten -to -one were opposed to trying a
pilot project. He announced that the matter will be pulled from staffs agenda and no more time will be
spent on it. He commented on the Civic Center Art Grand Opening and noted that the art is on loan to
the City for free. Mayor Hill reported attending the OASIS Senior Resources Expo, the Taste of OASIS,
and the OASIS Concert in the Courtyard. Additionally, he commented on the lease signing for the Lido
House Hotel and noted that the entitlement process is not yet done as the matter must be considered by
the Coastal Commission, which will be the last step. He encouraged public support so that the Coastal
Commission knows how much residents are looking forward to the hotel.
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September 23, 2014
XIV. PUBLIC COMMENTS ON CONSENT CALENDAR
Council Member Curry noted the completion of the Newport Coast Community Center stage remodeling
and the San Miguel Park restroom.
XV. CONSENT CALENDAR
A. READING OF MINUTES AND ORDINANCES
1. Minutes for the September 9, 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 ADOPTION
3. Adoption of Ordinance No. 2014 -15 Relating to Prevailing Wage Law for Locally -
Funded Public Works Projects [100 -2014]
Conduct second reading and adopt 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 California Senate Bill No. 7 Relating to Prevailing Wage Law for Locally- Funded
Public Works Projects.
4. Adoption of Ordinance No. 2014 -16 Approving Zoning Code Amendment No. CA 2014-
003 for the Former City Hall Site and Lido House Hotel [731100- 2014]
Conduct second reading and adopt Ordinance No. 2014 -16, An, Ordinance of the City Council of
the City of Newport Beach Approving Zoning 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).
Council Member Henn recused himself from this item due to a business interest with an
adjoining property owner.
C. CONTRACTS AND AGREEMENTS
5. Newport Coast Community Center Stage Remodel Project - Completion and
Acceptance of Contract No. 5540 (CAP14 -0002) [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 this Council acceptance.
6. San Miguel Park Restroom Building and Picnic Structure Replacement Project -
Completion and Acceptance of Contract No. 5541 (CAP14 -0005) [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
e) Release the Faithful Performance Bond one year after this Council acceptance.
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September 23, 2014
2014 -2015 Annual Sidewalk Curb & Gutter Replacement Project - Award of Contract
No. 5884 (CAP15 -0012) 1381100 -20141
a) Approve the project drawings and specifications;
b) Award Contract No. 5884 to Grigolla & Sons Construction Company, Inc. for the Total Bid
Price of $647,300.00, and authorize the Mayor and the City Clerk to execute the contract;
c) Establish an amount of $65,000.00 (10 %) to cover the cost of unforeseen work not included in
the original contract; and
d) Approve Budget Amendment No. 14BA -015 appropriating $218,300.00 from unappropriated
Gas Tax balance to Account No. 7181- C2001009 (Sidewalk, Curb and Gutter Replacement).
Council Member Gardner recused herself from this item because she may live within
500 feet of where the project may be making improvements.
8. Balboa Village Fine Arts Center Conceptual Design (Balboa Village Theatre) -
Approval of Professional Services Agreement with Robert R. Coffee Architects +
Associates (C -5937) [381100 -20141
a) Find that the transition of the Balboa Theater to a Balboa Village Fine Arts Center reflects
the wishes of the Council at least to the extent that further design work, a program pro
forma and cost estimation should be completed; and
b) Approve a Professional Services Agreement (PSA) with Robert R. Coffee Architects +
Associates of Newport Beach, California, for the Balboa Village Fine Arts Center Conceptual
Design at a not -to- exceed price of $8,500, and authorize the Public Works Director to execute
the Agreement.
D. MISCELLANEOUS
9. Planning Commission Agenda for the September 18, 2014 Meeting [100 -20141
Receive and file.
10. Budget Amendment to Accept a Check from the Newport Beach Public Library
Foundation and Appropriate Funds to the Library's Fiscal Year 2014/2015
Maintenance and Operation Budget [100 -20141
Approve Budget Amendment No 15BA -012 to increase revenue estimates by $224,000 in Account
4090 -5893 (Library Foundation) and to increase expenditure estimates by the same amount in
Division 4090 (Library Foundation) and Division 4060 (Literacy Services).
11. Budget Amendment to Accept a Check from California State Library for Literacy
Services (CLLS) in the Amount of $15,000 and Appropriate Funds to the Library's
Fiscal Year 2014/2015 Maintenance and Operation Budget [100 -2014)
Approve Budget Amendment No. 15BA -013 to increase revenue estimates by $15,000 in account
4010 -4832 (California Literacy Campaign) and to increase expenditure estimates by the same
amount in Division 4060 (Literacy Services).
12. Film Permit Fees Suspension for Six Months [100 -20141
Replace this item with "Film Permit Fees Suspension" at the October 14, 2014, City Council
meeting.
13. Acceptance and Recommended Placement of Shogun Statue from City of Okazaki
[100 -20141
The City Arts Commission recommends that the City Council accept a statue as a gift from
Newport Beach Sister City Okazaki Japan, including its interim placement in the Bamboo
Terrace at the Central Library and permanent installation at Irvine Terrace Park.
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14. Direction to Staff on Program/Facility Naming for NB Lifeguard Ben Carlson, Review
of Laws Relating to 30 -Day or Less Vacation Stays [100 -2014]
Direct staff to:
a) Ask Mr. Ben Carlson's family, the Ben Carlson Foundation, and the Newport Beach Fire
Department to review and recommend opportunities to name a program or facility in honor
of Mr. Carlson; and
b) Ask the City Manager's office and City Attorney's office to review laws and regulations
relating to vacation stays that are more than seven but less than 30 days in duration.
Motion by Mayor Pro Tern Selich, seconded by Council Member Curry, to approve the Consent
Calendar; noting the recusal by Council Member Henn on Item 4 and the recusal by Council Member
Gardner on Item 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 Tern Selich, Mayor Hill
XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR - None
XVII. PUBLIC COMMENTS ON NON - AGENDA ITEMS
Charles Griffin commented on his experience in the aviation industry, GPS, and flight paths from John
Wayne Airport (JWA). He suggested flight patterns where bird sanctuaries and homes in the area will
not be disturbed. He provided a handout illustrating his suggestion. Following Council Member
Gardner's comment relative to the sharp turn required by aircrafts to take off, Mr. Griffin explained how
the turn can be accomplished.
Steve Rosansky, President of the Newport Beach Chamber of Commerce, read a letter regarding a
matter that was considered at a recent Chamber Board meeting regarding Proposition 13. The letter
indicated that the Board discussed efforts by various State officials to amend or repeal provisions of
Proposition 13 and create a split -tax roll in the State. The Board passed a resolution urging the
Newport Beach City Council to oppose any changes to Proposition 13 that would allow for the treatment
of commercial properties different from residential properties. He announced several upcoming events
including the Fire and Lifeguard Appreciation BBQ at Newport Dunes on September 24, 2014, the
Corona del Mar Sandcastle contest on October 5, 2014, and the Chamber's 2015 Economic Forecast on
October 22, 2014, at the Marriott Hotel.
Council Member Curry noted that the split -roll would result in the loss of 340,000 jobs and would be
devastating to California businesses. He noted that Council took action to support the current status
quo in January and that Newport Beach is on record as opposing the change.
Jim Mosher commented on trust, integrity, and Measure Y. He believed that there is misinformation
regarding Measure Y and commented on The Irvine Company's report that it had no intention of
building any additional hotel rooms in Newport Coast. He commented on the removal of homes in
Newport Ridge and future car trips. He noted that there is no mention of this in the ballot measure. He
reported on recent interaction regarding Measure Y with the City Attorney and expressed concerns with
the refusal of City government to answer his question about the content of its own work_
City Attorney Harp noted that the materials had previously been provided to Mr. Mosher by the City
Clerk's Office, but he was repeatedly requesting the same material.
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Justin Cox congratulated Council Members Daigle and Petros for their efforts along the Back Bay and
bike paths. He commented on a recent Coastal Clean -up Day, distributed maps, and commented on
support received from the community regarding the Upper Newport Bay area. He thanked City staff
and also discussed efforts to restore that area. He commented on the Coastal Commission being a key
player in those efforts and encouraged public and City support.
Doug Swardstrom, Friends of the Fire Rings, urged Council to allow people to have the choice to burn
wood or charcoal. He commented on a CDP submitted by staff, believing that it is lacking and
referenced an upcoming hearing in October. He asked whether staff will have it completed in time for
the Coastal Commission to consider. Additionally, he referenced a citizen survey inquiring about fire
rings and wondered whether the results are open to the public and if so, when access will be available.
Nancy Skinner offered testimony regarding recent discussions with residents regarding Measure Y,
noting there seems to be confusion as to what a "yes" or "no" vote means. She added that it is not clear
what citizens will be voting on, believing that a "yes" vote would result in a lot of new development in
Fashion Island and Newport Center.
Council Member Petros addressed comments that have been said about him recently relative to his
views regarding Measure Y and reported that when he attempted to speak the truth about Measure Y,
he was hissed at. He suggested that everyone take pause and stick to the issue. He invited the public to
speak with him about the matter and continue the conversation about the issues rather than engage in
personal attacks.
Paul Blank, Harbor Commissioner, reported that the Commission has an objective relative to public
outreach and, to support that objective, the Harbor Commission will be holding a Special Meeting on
Saturday, November 15, 2014 . at 8:30 a.m. to tour the Harbor. He indicated that they will be meeting at
the Harbor Patrol Visitor Dock, and encouraged Council and the public to attend.
Rita Goldberg indicated that voting "yes" on Measure Y would allocate a percentage of the development
fees to fund the arts in Newport Beach. She reported that the City Arts Commission has been working
with Arts OC to develop a blueprint for a master plan for arts in the City. She stated that she welcomes
the opportunity to provide the type of housing being proposed at Newport Center. She added that she is
not confused about Measure Y and believed that voting "yes" would bring enhancement to the City.
XVIII. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES
Council Member Daigle thanked Mr. Cox for his positive comments regarding the Upper Bay and Mr.
Griffin for his creative ideas about the turning of aircrafts. She commended the commitment residents
have in reducing concerns at John Wayne Airport (JWA). She reported that, on September 30, 2014, the
Board of Supervisors will be considering an amended Settlement Agreement in which the curfew will
remain in effect and consider certifying the Environmental Impact Report (EIR).
Council Member Henn provided an update of recent meetings of the Balboa Village Advisory Committee
(BVAC) and the Tidelands Management Committee, and reported on matters considered at each.
Mayor Pro Tern Selich reported that the General Plan /Local Coastal Program Implementation
Committee meeting for September has been cancelled and the next scheduled meeting will be held on
October 29, 2014.
XIX. PUBLIC HEARINGS
15. An Amendment to the Zoning Code Regulations Regarding A -Frame Signs [100 -20141
No action required.
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16. Appeal of Conditional Use Permit Regarding Alcohol Service at the Port Theater Located
at 2905 East Coast Highway (PA2014 -019) [100 -2014]
Community Development Director Brandt introduced the item, reported that the matter was
initiated by Council Member Gardner, and deferred to her for further information.
Council Member Gardner reported that there were two aspects of the application, including
extending liquor service to the main floor. She indicated that her concern is relative to why a movie
house would like to serve alcohol until 1:00 a.m., particularly in an area that is already impacted by
traffic.
Jessica Prause, representing the Port Theater, reported receiving a number of letters in support of
the proposal from the community, which were forwarded to the City. She commented on the
theater's continued commitment to the community and addressed the benefits of granting their
application.
Mayor Hill commented on the operator's license and, in response to his question, Community
Development Director Brandt reported that the operator's license would need to be amended with
whatever conditions or changes in operation Council adopts, if any. She clarified that the operator's
license gives the Police Chief authority to amend the conditions of the operator's license as a result of
any issues that may arise.
In response to Council Member's Henn question, Community Development Director Brandt reported
that the Police Department has recommended approval of the application in regards to the extended
hours of operation for alcohol service and the mixed age groups where alcohol is being served only in
conjunction with movie showings. In terms of other types of events, the original hours of operation
and alcohol service would remain in place. Regarding concentration of alcohol- serving
establishments in the Corona del Mar area, Assistant Planner Nova reported that other
establishments were evaluated with the Police Departments recommendation.
Newport Beach Police Department Detective Thulin confirmed that the area is over - concentrated
with alcohol- serving establishments, but indicated that almost every reporting district is over -
concentrated. He noted that there is one ABC license for every 229 residents in the district, but the
Orange County average is one for every 420 residents and the State average is one for every 836
residents. He added that the Balboa Peninsula is one ABC license for every 43 residents. Detective
Thulin reported meeting with Ms. Prause and they worked with them on their application and made
recommendations to their proposal.
Council Member Petros clarified that, when the theater is operating as a movie house, the extended
hours would go into effect. If they had another type of event, this would not apply. Community
Development Director Brandt added that the hours of operation are related to alcohol service. She
addressed the types of ways the theater is used, adding that each is looked at differently with
respect to hours of operation and the ability to serve alcoholic beverages.
Council Member Petros noted that, in reviewing the theater's calendar, the last showing for movies
is 8:00 p.m. and asked whether the theater plans on having showings after that. Ms. Prause
responded affirmatively and added that, when new movies are released, the theater makes 60% of its
revenue during the first week. In order to be competitive with Fashion Island theaters, it needs to
offer later night showings.
In response to Council Member Gardner's question, Community Development Director Brandt
reported that alcohol service concludes when the last movie is over. Assistant Planner Nova
reported this was discussed in the Planning Commission hearing where Condition No. 11 was added.
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September 23, 2014
Mayor Hill opened the public hearing.
Richard Nichols expressed concern that the theater does not have much parking. He asserted that
most bars are closed before 1:00 a.m. in Corona del Mar and suggested having the upstairs and
downstairs operating at the same time under the current rules to see if this causes a problem, and
then adjust the hours if needed.
Gary Sauter thanked Council Member Gardner for appealing this item and noted that the difference
with the Islands Theater is that it is not located near residential areas. He expressed his opposition
to the item and believed that the area is heavily impacted already.
Jim Mosher questioned the need for alcohol sales as part of the movie experience, commented on the
applicant's position that alcohol sales are necessary in order for them to compete, noted that the Port
Theater is directly adjacent to residential areas, and indicated that the Islands Theater has an
alcohol license restricted to beer and wine while the Port Theater has a full liquor license and can
operate as a bar. He believed that this is an important distinction that Council needs to understand.
Chris Beaufort commented on segments of the day when residents must deal with the daily
operations of nearby businesses, but indicated that the hours between 11:00 p.m. and 7:00 a.m.
should be for the residents. While he supports businesses, he indicated that he believes there needs
to be give and take between businesses and residents.
Dawn Stone expressed concerns regarding noise, noting that it is directly related to alcohol later in
the evening. She addressed the lack of parking in the area and asked that Council consider
residents when making its decision.
Carol Ann Rohr urged Council to keep the existing hours of operation for the Port Theater, adding
that there is no reason to extend the hours and noting the lack of parking. She stated that there is
no financial hardship, the owner has multiple businesses, and changing the hours of operation and
alcohol service will not have an effect on his business recovery or financial situation. She added that
the Port Theater is not family -owned or a small business and that selling alcohol until 1:00 a.m. will
not help the community.
Ali Hosseinzadeh, owner of the Port Restaurant, expressed support for the Port Theater, but
believed that their request needs to be given careful consideration. He expressed concern with the
lack of parking and believed that the Corona del Mar parking matter needs to be considered before
granting this application.
Hearing no further testimony, Mayor Hill closed the public hearing.
Council Member Gardner believed that the 1:00 a.m. request is inappropriate. She noted that this is
a residential area and not similar to the theaters in Newport Center. She added that, if the theater
wants to have a 10:00 p.m. showing, they would still have an hour to serve alcohol and believed that
consideration should be given to the residents in the area.
Motion by Council Member Gardner, seconded by Council Member Petros, to adopt
amended Resolution No. 2014 -85, A Resolution of the City Council of the City of Newport Beach
Upholding the Planning Commission's Approual of Conditional Use Permit No. UP2014 -030
Superseding Minor Use Permit No. UP2012 -009 to Operate the Port Theater (A Landmark Theater)
in Conjunction with a Type 47 (On -Sale General) Alcoholic License Located at 2905 East Coast
Highway (PA2014 -019), finding the project exempt from the California Environmental Quality Act
( "CEQA') pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, and approving
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City of Newport Beach
Study Session and Regular Meeting
September 23, 2014
Conditional Use Permit No. UP2014 -030, subject to the conditions, but not change the hours of
operation from 11:00 p.m, to 1:00 a.m.
Substitute motion by Council Member Curry, seconded by Mayor Pro Tern Selich, to adopt
Resolution No. 201485, A Resolution of the City Council of the City of Newport Beach Upholding the
Planning Commission's Approval of Conditional Use Permit No. UP2014 -030 Superseding Minor Use
Permit No. UP2012 -009 to Operate the Port Theater (A Landmark Theater) in Conjunction with a
Type 47 (On -Sale General) Alcoholic License Located at 2905 East Coast Highway (PA2014 -019),
finding the project exempt from the California Environmental Quality Act ( "CEQA') pursuant to
Section 15301 (Existing Facilities) of the CEQA Guidelines, and approving Conditional Use Permit
No. UP2014 -030, subject to the conditions.
Council Member Curry commented on the property's prior conditions and how the new owner
revitalized it into a community asset. He noted that the Theater has operated with minimal impact
to the neighborhood and stated that, if the City is truly pro- business, business must be given the
tools that they need to survive and thrive. He added that Council needs to recognize the
improvement to the community due to the Port Theater and that the operator has proven himself.
Council Member Gardner noted that the General Plan indicates that residents should come first
and, while she supports businesses, it should not be at the expense of residents.
Mayor Pro Tem Selich agreed with Council Member Curry's comments. He commented on the
development of the Landmark Buildings Ordinance to preserve the Port Theater and believed that
Council should make an exception because of the efforts made to restore it. He commented on the
operator's license and the Conditions of Approval, and noted that the City has the ability to take
corrective action in cases of non - compliance.
Mayor Hill commented on the enforcement tool and safeguards provided by the operator's license.
Council Member Petros addressed prior discussions regarding the Corona del Mar parking plan and
noted that parking impacts around the subject area are unknown. He suggested that approving this
application may be premature. He commented on the Conditions of Approval relative to service
limitations and asked regarding the City's prior experience with operators' licenses where there has
been a bad operator.
Detective Thulin reported that the City has not had to take any action against an operator, but not
every restaurant or bar has an operator's license since it is a new concept and many establishments
have been grandfatbered in. He indicated that they would be subject to an operator's license if the
restaurant or bar would be making substantial changes. He added that benefits of an operator
license is that it gives the Police Department discretion and some level of control for the operation of
an establishment and a good working relationship between the Police Department and the operator.
Council Member Daigle stated she will support the substitute motion since the Police Department
has recommended approval.
Council Member Henn noted that this is a difficult situation, but agreed that the parking problem in
Corona del Mar needs to be resolved apart from this issue. He emphasized that he would be
adamantly against this type of approval for other events at the Theater besides movie showings. He
believed that the issue of drinking is a moderate issue in relation to a movie theater since it will
have minimal impacts. Weighing that against revitalization benefits, he stated that he will be
supporting the substitute motion.
City Attorney Harp clarified the substitute motion
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City of Newport Beach
Study Session and Regular Meeting
September 23, 2014
The substitute motion carried by the following roll call vote:
Ayes: Council Member Petros, Council Member Curry, Council Member Henn, Council Member
Daigle, Mayor Pro Tem Selich, Mayor Hill
Noes: Council Member Gardner
XX. CURRENT BUSINESS
17. Orange County Grand Jury Pension Report Responses [100 -20141
City Manager Kiff briefly explained the request to submit a response to the Orange County Grand
Jury report relative to pensions and pension transparency.
Motion by Council Member Gardner, seconded by Mayor Pro Tern Selich, to authorize the
City Manager's issuance of the response attached to the staff report to the Grand Jury regarding
pensions and pension transparency.
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
XXI. MOTION FOR RECONSIDERATION - None
XXII. ADJOURNMENT - 9:01 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 18, 2014, at 4:00 p.m.
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