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HomeMy WebLinkAbout01 - 06-27-00July 11, 2000 Agenda Item No. CITY OF NEWPORT BEACH City Council Minutes DRAFT Study Session June 27, 2000 - 4:10 p.m. INDEX Present: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Absent: Ridgeway (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Agenda Item No. 13, San Miguel Drive Roadway Improvements (C- 3311), Public Works Director Webb confirmed for Council Member Debay that the project will be completed in about three months. 2. MARINER'S MILE - ORAL PRESENTATION ON DRAFT DESIGN GUIDELINES. City Manager Bludau reported that Keenan Smith from City Lights Design Alliance will be providing an oral report that is similar to the presentation he will be giving to local residents and Mariner's Mile businesses. Keenan Smith, City Lights Design Alliance, reported that he is an urban planning and design consultant and has been working on the Mariner's Mile design framework since fall 1997. He stated that the work came about as a result of a former business and citizens advisory committee recommending that a design framework be developed for Mariner's Mile. He indicated that he has been working for 11 months with staff and Council Member Glover and that a draft design framework was generated in July 1998. He reported that they went on a hiatus for 10 or 11 months while the search for a City Manager was going on and other issues arose. However, for the last 10 months, the firm has been working intensely and is receiving input from a new Mariner's Mile business owners association that was created to look after the business interest on Mariner's Mile. He stated that another draft design framework has been compiled and that they are ready to receive public input. Mr. Smith reported that their focus is on how to create a strong design framework for Mariner's Mile. He indicated that they see Mariner's Mile as a crucial and important part of the City since it is an area that many people pass every day. He believed that, on a visual, planning, and land use standpoint, the area has vast variety in its buildings, signage, and opportunities for making it a better place for the City. Mr. Smith distributed an outline to Council and invited everyone to review the series of picture boards he placed near the dais. He noted that, when they first looked at Mariner's Mile, the economic circumstances were a bit Volume 53 - Page 434 No report City of Newport Beach Study Session Minutes June 27, 2000 INDEX different than they are today. He reported that the businesses are currently doing quite well and that phenomenal tax revenue comes from Mariner's Mile. However, the area does leave something to be desired in terms of presenting cohesiveness and quality building standards that one might expect when coming to the City. He reported that they began to look at the problem in terms of five categories: planning and urban design, landscape, signage, architecture, and parking. Mr. Smith utilized an aerial photo of Mariner's Mile, from Upper Newport Bay Bridge to the Arches Bridge. He believed that the gateways to Mariner's Mile are important focal points for the district and emphasized how improving the signage at those gateways can announce the identity of the district. He stated that they even worked with the team that was working on the Arches Bridge so that they could look at their landscaping and suggest modifications to create a stronger landscape theme. However, he noted that they have ideas for the Dover Drive interchange that still need addressing. He indicated that their ideas for entry include signage, nautical flags, lighted signage, and an area logo. Mr. Smith stated that the Tustin/Riverside intersection and the blocks immediately on the inland side could be the urban design "bones" for a Mariner's Village that can connect Newport Heights above with the waterfront below. He stated that they recommend that the pieces of walkway be connected to create a strong public waterfront to help the district boost its identity and create a more exciting feel. Even though doing this may be controversial since there is a series of entertainment and theme restaurants, he indicated that they would be remiss as urban designers and planners if they did not bring this forward for consideration. Regarding landscapes, Mr. Smith stated that there is a latent desire to try to make more out of Mariner's Mile in terms of its continuity and strength, and that a strong landscape program on Pacific Coast Highway (PCH) would achieve this goal. He utilized a diagram to show the types of trees and hedges that will be planted which builds on what is already in existence. Mr. Smith emphasized that signage is also a critical element for Mariner's Mile. He stated that the visual discord of the signs is a result of many businesses reaching out to the highway with their own business identity without any sense of restraint or continuity. He reported that they suggest to address the sign issue through code enforcement since about 40 percent of the signs do not meet the code and by working with the business owners association to get their input. He indicated that they started out with very stringent sign ideas and pulled back to assist in the design of the pole signs. Regarding architecture, Mr. Smith stated that they are making the businesses more aware that the architecture on Mariner's Mile is seen from at least four or five sides, noting that the buildings are also looked down upon. He added that they also have suggestions relative to the color pallet, hardware, and nautical design. Mr. Smith reported that some of the most important work that they have done has been in their design review and assistance. He stated that they Volume 53 - Page 435 City of Newport Beach Study Session Minutes June 27, 2000 INDEX worked on eighteen to twenty projects, ranging from the review of the Balboa Bay Club and Auto Bistro. He noted that, even though they currently do not have the strength of a design framework, their ideas have helped when working with the applicants. Mr. Smith announced that they will be holding a meeting on July 9 to solicit input and reported that the design framework is 95 percent complete. In response to Mayor Pro Tem Adams' questions, Mr. Smith believed that on- street parking on PCH will help create a sense of place for pedestrians on Mariner's Mile since it would slow down traffic, but widening PCH would be counterproductive to their work since it leaves no room to landscape or pull the common elements together. Mayor Pro Tem Adams indicated that what they have done so far looks good, but expressed concern that, with streetscape projects like this, it could look tacky if they are not done with quality. Mr. Smith indicated that they considered not taking the project if all that was desired was to hang banners and plant a few plants on PCH. He stated that their work has not entirely been about beautification or cosmetic improvements to Mariner's Mile, but has been about a thoughtful analysis of what Mariner's Mile wants to be and how the strategic elements work together to create a better place. Mayor Pro Tem Adams stated that preserving the marine heritage is important but noted the demand for land use. He asked if the City is forcing something that will be counter to the economic forces of the area. Mr. Smith stated that Mariner's Mile will always have the waterfront, is distinctive to other sections of PCH, and marine uses will always have a place on Mariner's Mile, but he also pointed out that there has been a change in the composition of those uses. He stated that they have not emphasized a nautical theme but have pointed applicants toward that idea as long as it is not a gimmicky design. Assistant City Manager Wood reported that they are working on zoning amendments that would implement items in the design framework, the initiation for this is on tonight's agenda, and they plan to bring the design framework and ordinances before the Planning Commission and Council in the future. She clarified that they are proposing to have the design framework adopted by Council resolution so it becomes a City policy. Further, the ordinance amendments would put a development plan review process into place so that new development or major additions to properties on Mariner's Mile will be reviewed by the Planning Director for substantial conformity with the design framework. She stated that some of the specifics, particularly with regard to sign regulations and landscaping requirements, will also be placed into the code. Council Member Glover stated that they tried to stay away from having a theme because it is inappropriate. She believed that they have been trying to point out materials that soften the area and create a guideline, but do not require people to follow them. She reported that they used the design framework with six businesses on Mariner's Mile through the Good Neighbor Policy and believed that a lot of businesses come into Mariner's Mile without any idea of what they want. Council Member Glover added that the current businesses have also worked hard to put together a sign program and are regulating themselves. She noted that this is one of the first programs in Volume 53 - Page 436 City of Newport Beach Study Session Minutes June 27, 2000 any municipality where the businesses have been willing to discipline themselves. She added that the businesses will also be paying for most of the landscape improvements. Mr. Smith introduced one of his colleagues, Leann Kirby. He reported that she is a landscape architect and urban designer in Laguna Beach and that she sat on the business and citizen advisory committee that recommended the project. Ms. Wood reported that a community forum is planned for Sunday, July 9 at the Mariner's Square Center and that Mr. Smith, Ms. Kirby, and staff will be in attendance to explain the proposal. Following that, the design framework and the zoning amendments will be finalized and will go before the Planning Commission for public hearing and then to the City Council. 3. SANTIAGO DRIVE SPEED REDUCTION PROGRAM UPDATE AND INTRODUCTION TO THE DRAFT NEIGHBORHOOD TRAFFIC MANAGEMENT GUIDELINES. Transportation and Development Services Manager Edmonston stated that a meeting notice was sent to all the residents along Santiago Drive, as well as those that have been most active on the other streets. However, he received phone calls today indicating that the time of the study session was not included on the notice. He reported that he described what he would be reviewing and the timeframe allowed to those that called him today and indicated that they opted to participate as improvements are recommended. He added that he also heard that Mr. Berger is out of town and that there is a "For Sale" sign on his front lawn. Regarding the enforcement activity, Mr. Edmonston referenced Tables A and B in the staff report and stated that it does not appear that the presence of law enforcement diverted traffic to any of the parallel streets. However, the speeds decreased when enforcement was the heaviest and increased slightly when enforcement went into a milder posture during the last couple of months. He reported that radar studies were conducted last Saturday and that the traffic during the afternoon was higher by several miles an hour than what was measured during the weekday. He indicated that the data from weekday morning and afternoon commutes has not been received yet but will be available in the future. He added that the higher speeds are down several miles an hour, but noted that it can be influenced by just one or two very fast drivers. Mr. Edmonston stated that they looked at what could be done to the streets in the community to try to bring driver behavior more in line with the residents' desires and expectations. He stated that the Draft Neighborhood Traffic Management Guidelines was prepared primarily by Ed Cline of Willdan Associates. He reported that Willdan was selected because they have handled these types of neighborhood traffic management studies in five cities and about 30 different neighborhoods in the past few years. Lew Gluesing, Willdan Associates, reiterated that Willdan has done quite a few neighborhood traffic management studies for different cities and stated Volume 53 - Page 437 INDEX Santiago Drive Speed Reduction Program/Draft Neighborhood Traffic Management Guidelines (85) City of Newport Beach Study Session Minutes June 27, 2000 INDEX that large projects, like the one done for 25 neighborhoods in Long Beach, gave them a lot of insight. He noted that the process can take one to two years to complete, depending on the complexity and how long it takes to come to a consensus in the neighborhood. Mr. Gluesing reported that this type of process is initiated when the City receives a request or complaint. Once received, staff reviews the site and conducts an initial traffic engineering investigation that may even generate a solution. He reported that the neighborhood would then appear before the Traffic Affairs Committee so that they can review the initial study and receive comments. The Committee tries to formulate possible solutions and provide guidance to the neighborhood, and then the neighborhood is noticed and educated on the issues and possible solutions. If a solution cannot be reached, a petition can be circulated by those who may be potentially impacted in the area. This area is determined by staff. Mr. Gluesing stated that a neighborhood workshop is conducted once the petition is submitted to the City with at least 60 percent of the affected residents' signatures. Willdan then generates the engineering analysis that is based on observed speeds that are very close to the 85 percentile speeds. The Traffic Affairs Committee evaluates the analysis and looks at the benefits and how they might proceed. He stated that another petition would be submitted to the neighborhood that identifies the things proposed for implementation and how it might affect the community. He noted that they suggest that 75 percent of the affected residents be in favor of the proposal. He indicated that a second neighborhood workshop would now take place to discuss what will be presented to Council, staff recommendations, and what measures may be implemented. Council would then review the proposal during a public hearing and the traffic measure would be implemented once approved. He reported that plans and specifications would then be prepared and reviewed by the public. Regarding the implementation of the traffic management measures, Mr. Gluesing stated that the traffic measures can be made permanent initially or on a temporary basis. He reported that the measures (i.e. sand bags and delineators) are generally made temporary for three to six months to get a sense of what the impacts will be on the community and what they think of the measures. If the measures are acceptable and are doing some good, they can be made permanent. Regarding the engineering analysis, Mr. Gluesing explained the 85 percentile speed. He stated that a city may want to post a 25 mph speed limit since the 85 percentile speed limit may be as high as 29.9 mph and if the 85 percentile speed is the high end of the reasonable improvement speed. Mr. Bludau asked if it is normal for 50 percent of the traffic to be exceeding the speed limit. Mr. Edmonston noted that, according to the most recent studies on Santiago Drive which represent about 400 vehicles, only about 20 to 25 percent are driving at or below the speed limit. Public Works Director Webb stated that the Draft Neighborhood Traffic Management Guidelines also includes petition forms and gives examples of traffic management measures (i.e. chokers, traffic circles, bumps, intersection platforms, etc.). Volume 53 - Page 438 City of Newport Beach Study Session Minutes June 27, 2000 In response to Mayor Pro Tem Adams' question, Mr. Edmonston reported that he and Willdan are trying to finalize the July 12 meeting with the residents affected by Santiago Drive. He indicated that Willdan has been working on some concept plans for Santiago Drive and Holiday Road, and that they hope to be back before Council in four weeks with recommendations. He stated that they are leaning toward some form of physical construction to try to impact the speed. He noted that the guideline is a draft and that staff would entertain input from Council at some point, particularly on some of the thresholds, since these guidelines may be useful on a Citywide perspective. Council Member Glover stated that there are interesting solutions for Santiago Drive and its affected side streets; however, the City needs to gingerly look at how the numbers can be applied to the rest of the City. Mr. Edmonston agreed and noted that, under the revised Traffic Phasing Ordinance, the need for additional studies like this can be triggered. He added that a number of cities have found that these studies have also helped residents understand the possibilities by developing guidelines. Mayor Pro Tem Adams suggested that staff generate a matrix that lists the different measures and some of the characteristics. PUBLIC COMMENTS Dan Purcell stated that he is looking forward to tonight's Council meeting and feels like he has a ticket to one of the most incredible shows around. He added that he is proud to have this Council representing the City. - 5:05 p.m The agenda for the Study Session was posted on June 21, 2000, at 3:00 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 53 - Page 439 •I IN 01 �►:1 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting June 27, 2000 - 6:00 p.m. DRAFT INDEX - 4:10 p.m. [Refer to separate minutes] CLOSED SESSION - 5:15 p.m. - None. RECESSED AND RECONVENED AT 6:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Absent: Ridgeway Pledge of Allegiance - Council Member O'Neil. Invocation by Chief Chaplain George B. Vogel, VA Medical Center of Long Beach. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): • Council Member Debay announced that the public is invited to attend the meeting of the West Newport residents to be held at 7:00 p.m. on June 28, 2000, in the Council Chambers. She stated that Lieutenant Rich Long would be providing a presentation at the meeting regarding the logistics and plans for the Fourth of July holiday. • Mayor Pro Tem. Adams referred to an item on the July 13, 2000, City Council agenda regarding funding for the widening of Jamboree Road. He stated that it has raised the question within his district of why the widening is needed. He requested that staff prepare a report that evaluates the need and costs, and provides the ramifications for not doing, or postponing, the widening. • Council Member Thomson reminded the public that the Junior Lifeguard program is underway and is a great program provided by the City. • Mayor Noyes announced that the current meeting would be long. He announced that Item Nos. 31, 32 and 33 would be taken ahead of Item No. 30, the Newport Dunes Resort. He further announced that Item Nos. 29 and 34 would be continued and not discussed at the current meeting. Motion by Council Member O'Neil to continue Item Nos. 29 and 34. The motion carried by the following roll call vote: Volume 53 - Page 440 City of Newport Beach City Council Minutes June 27, 2000 INDEX Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway Mayor Noyes announced that the current meeting would be adjourned in the memory of Comcast Cameraman Paul Froehlich and Newport Beach Conference and Visitors Bureau (CVB) President Rosalind Williams. Mayor Noyes stated that Mr. Froehlich worked behind the scenes while Ms. Williams worked in front of the scenes, and both were very much a part of the Newport family. He expressed his condolences. Council Member O'Neil stated that he had the pleasure of being a member of the CVB Board and working closely with Ms. Williams. He added that he also knew her personally for many years. Council Member O'Neil expressed his shock in hearing of her passing and stated that her courageous fight against cancer was remarkable. He stated that she was a fine woman with many great attributes, that she would be missed and that he knew she was in a better place. Council Member Debay stated that Ms. Williams was a professional woman with beauty and grace. Council Member Debay stated that she was a brilliant ambassador for the City of Newport Beach. Council Member Debay expressed her admiration for Ms. Williams, and said that the void left by her passing would be difficult to fill. Council Member Glover stated that Ms. Williams was sophisticated, classy and courageous. She added that Ms. Williams was also a wonderful mother to two great children. Council Member Glover stated that Ms. Williams will be missed. Mayor Noyes stated that his last contact with Ms. Williams was when she took the time to offer words of kindness and support when he was going through a problem recently. He stated that it gave him strength and he will remember her act of kindness. Mayor Noyes stated that many people also knew Mr. Froehlich as the behind the scenes cameraman who worked as the production manager for Speak Up Newport. CONSENT CALENDAR READING OF MINUTES/ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE SPECIAL MEETING AND REGULAR MEETING OF JUNE 13, 2000. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. Volume 53 - Page 441 City of Newport Beach City Council Minutes June 27, 2000 INDEX Kh:JULUIIUMS FUR ADUYIIUN 3. 2000 ANNUAL WEED AND OTHER NUISANCES ABATEMENT. Adopt Res 2000 -56 Resolution No. 2000 -56 declaring that weeds and other nuisances exist and Weed Abatement schedule a public hearing for August 8, 2000 regarding their abatement. (41) 4. GENERAL MUNICIPAL ELECTION - NOVEMBER 7, 2000: Res 2000 -57 ADOPTION OF RESOLUTIONS CALLING THE ELECTION Res 2000 -58 (CANDIDATES ONLY) AND REQUESTING CONSOLIDATION WITH General THE STATEWIDE GENERAL ELECTION. a) Adopt Resolution Municipal No. 2000 -57 calling and giving notice of the holding of a General Municipal Election Election to be held on Tuesday, November 7, 2000 for the election of (39) members of the City Council as required by provisions of the City Charter; and b) Adopt Resolution No. 2000 -58 requesting the Board of Supervisors of the County of Orange to consolidate a General Municipal Election to be held on Tuesday, November 7, 2000 with the Statewide General Election to be held on the same date pursuant to Section 10403 of the Elections Code. 5. AIRPORT AREA DEVELOPMENT COMMITTEE. Adopt Resolution Res 2000 -59 /Airport No. 2000 -59 establishing and appointing the committee. Area Devel Cmte (24) 6. FEE SCHEDULE ADJUSTMENTS. Adopt Resolution No. 2000 -60 Res 2000 -60 establishing a schedule of fees to be charged for specific services. Fee Schedule (40) 7. MARINER'S MILE DESIGN FRAMEWORK - INITIATION OF AN Res 2000 -61 ORDINANCE AMENDMENT IMPLEMENTING MARINER'S MILE PCA 900 DESIGN FRAMEWORK. Adopt Resolution of Intent No. 2000 -61 to Mariner's Mile initiative Amendment No. 900 which will amend Title 20, Zoning Code and Design Framework the Districting Maps. (94) ORDINANCE FOR ADOPTION 8. Item removed from the Consent Calendar by Mayor Pro Tern Adams. CONTRACTS AND AGREEMENTS 9. LEGAL ADVERTISING BID FOR FISCAL YEAR 2000 -2001. Accept the Legal bid of the Daily Pilot and authorize a purchase order for the one -year period Advertising of fiscal year 2000 -2001. (32) 10. AMENDMENT TO AGREEMENT WITH CITY LIGHTS DESIGN C -3153 ALLIANCE FOR COMPLETION AND PUBLIC REVIEW OF Mariner's Mile MARINER'S MILE DESIGN FRAMEWORK. Approve amendment to Design agreement in the amount of $18,550. Framework (38) 11. SECOND AMENDMENT TO JOINT POWERS AGREEMENT FOR C- 3089/Metro THE METRO CITIES FIRE AUTHORITY. Approve and authorize the Cities Fire Mayor to sign the amended agreement. Authority (38) 12. AGREEMENT WITH ADVANCED BUILDING MAINTENANCE. C -3353 Approve a contract with Advanced Building Maintenance for janitorial Janitorial services of the City community centers during FY 2000 -01. Services (38) Volume 53 - Page 442 City of Newport Beach City Council Minutes June 27, 2000 INDEX 13. SAN MIGUEL DRIVE ROADWAY IMPROVEMENTS - AWARD OF C -3311 CONTRACT (C- 3311). 1) Approve the plans and specifications; BA -072 2) determine that the bid submitted by GCI Construction, Inc. contained an San Miguel Drive arithmetic error and is therefore the third low bidder; 3) declare Holland - Roadway Lowe Construction, Inc. as the low bidder and award Contract No. 3311 to Improvements Holland -Lowe Construction, Inc. for the total bid price of $213,718, and (38/40) authorize the Mayor and the City Clerk to execute the contract; 4) establish an amount of $21,000 to cover the cost of material testing and unforeseen work; and 5) approve a budget amendment (BA -072) in the amount of $132,918 from the Transportation & Circulation Fund Balance to Account No. 7261- C5100535. 14. LETTER AGREEMENT FOR MODIFICATION OF A C -3354 METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA 36 -Inch Pipeline 36 -INCH PIPELINE MANHOLE STRUCTURE AT BONITA CANYON Manhole Structure SPORTS PARK. 1) Authorize the Public Works Director to execute a letter at Bonita Canyon agreement with Metropolitan Water District of Southern California and Sports Park establish an amount of $35,000 as deposit for construction costs to modify a (38) 36 -inch manhole structure at Bonita Canyon Sports Park; and 2) establish an amount of $7,380 to cover the cost of unforeseen work. 15. NEWPORT HEIGHTS STREET IMPROVEMENTS - AWARD OF C -3313 CONTRACT (C- 3313). 1) Approve the plans and specifications; 2) award Newport Contract No. 3313 to Nobest Inc. of Westminster for the total bid price of Heights $449,955 and authorize the Mayor and the City Clerk to execute the Street contract; and 3) establish an amount of $45,000 to cover the cost of testing Improvements and unforeseen work. (38) 16. BIG CANYON RESERVOIR SEDIMENT DISPOSAL. 1) Authorize the C -3355 retention of the firm of Burns and McDonnell to manage the disposal of Big Canyon sediment from the Big Canyon Reservoir site for $25,370; 2) authorize Reservoir contracting with hauling and disposal firms for the disposal of the sediment Sediment from the Big Canyon Reservoir site for $28,800; and 3) authorize $18,000 for Disposal the actual disposal of the sediment from Big Canyon Reservoir. (38) 17. BALBOA ISLAND PEDESTRIAN BRIDGES - REJECT ALL BIDS C -3295 (C- 3295). 1) Reject all bids; 2) rebudget the remaining funds in Account Balboa No. 7013- C5100506 for aesthetic improvement to the Balboa Island Bridges Island and Island sidewalk improvements; and 3) direct staff to work with the Pedestrian Balboa Island community associations to determine the scope of work to be Bridges accomplished. (38) 18. EASTBLUFF AND BONITA CREEK PARKS RECLAIMED WATER C -3327 RETROFIT AND IRRIGATION IMPROVEMENTS - REJECT BID Eastbluff and Bonita (C- 3327). 1) Approve the plans and specifications; 2) reject the single bid Creek Parks Reclaimed from Green Giant Landscape, Inc.; and 3) rebudget project funds from Water Retrofit and Account No. 7501- C5500074 to FY 2000 -2001. Irrigation (38) 19. Item removed from the Consent Calendar by City Manager Bludau. 20. CITY HALL ELECTRICAL AND AIR CONDITIONING UPGRADES - C -3318 Volume 53 - Page 443 City of Newport Beach City Council Minutes June 27, 2000 INDEX Volume 53 - Page 444 AWARD OF CONTRACT (C- 3318). 1) Approve the plans and BA -071 specifications; 2) award Contract No. 3318 to Bay Shores Electric, Inc. for the City Hall total bid price of $79,500 and authorize the Mayor and the City Clerk to Electrical and execute the contract; 3) establish an amount of $7,671.15 to cover the cost of Air Conditioning unforeseen work; and 4) approve a budget amendment (BA -071) transferring Upgrades $28,618.75 from Account No. 7015- C2700445 to Account No. 7011- C3120441. (38/40) 21. SUBSCRIBER AGREEMENT FOR HAZARDOUS MATERIALS C -3356 EMERGENCY RESPONSE. Authorize the City Manager to execute the Hazardous subscription agreement between the City and the Orange County- Cities Material Hazardous Materials Emergency Response Authority (OCCHMERA) for Emergency emergency hazardous material team response services. Response (38) 22. LEASE AGREEMENT - UPPER NEWPORT BAY REGIONAL PARK. C- 3357/Upper Authorize the Mayor to execute the proposed lease for a City -held tidelands Newport Bay trust property within the boundaries of Upper Newport Bay Regional Park. Regional Park (38) MISCELLANEOUS ACTIONS 23. PLANNING COMMISSION AGENDA FOR JUNE 22, 2000. Receive and Planning file. (68) 24. LOW POWER FM RADIO SYSTEM. Make no decision on acquiring a low Low Power power FM radio station, but direct staff to continue to research costs, FM Radio broadcast coverage and filing opportunities. System (44) 25. COPSMORE GRANT. Accept the COPSMORE Grant and approve a BA -070 budget amendment (BA -070) in the amount of $1,636,556 to increase COPSMORE revenue estimates and expenditure appropriations for the COPSMORE Grant Grant previously awarded to the City. (40/70) 26. BUDGET TRANSFER REQUEST - PUBLIC WORKS, BA -069 TRANSPORTATION AND DEVELOPMENT DIVISION - TRANSFER Public Works OF SALARY SAVINGS TO MAINTENANCE & OPERATIONS Department ACCOUNTS. Approve a budget amendment (BA -069) transferring $24,800 Budget Transfer from Account No. 5200 -7000 and $5,000 from Account No. 5200 -7020 to (40/74) Account No. 5200 -8080 in the amount of $7,000 and Account No. 5200 -8030 in the amount of $22,800. 27. Item removed from the Consent Calendar by Council Member Thomson. 28. RULE 20A UNDERGROUNDING DISTRICT PRIORITY LIST. Rule 20A 1) Confirm the City Council Subcommittee 20A priority list for future Undergrounding Rule 20A underground districts in the following priority order: A) Bayside District Drive from Jamboree Road to El Paseo Drive and El Paseo Drive from Priority Bayside Drive to Seadrift Drive; B) Superior Avenue from Placentia Avenue List to s/o Ticonderoga Street; C) San Joaquin Hills Road from Spyglass Hills (89) Road to El Capitan Drive; and 2) direct staff to schedule public hearings to form Rule 20A undergrounding districts for the three locations. S35. APPOINTMENT TO THE ENVIRONMENTAL QUALITY CITIZENS EQAC Volume 53 - Page 444 City of Newport Beach City Council Minutes June 27, 2000 ADVISORY COMMITTEE. Confirm Council Member appointment of Barry Allen as the at -large member for District 6. S36. COST OF 2% AT 55 RETIREMENT FOR MISCELLANEOUS EMPLOYEES. Receive and file. S37. OPPOSITION TO PROPOSED AMENDMENT OF WASTE DISCHARGE REQUIREMENTS (WDRs) FOR SILVERADO CONSTRUCTORS - REGIONAL WATER QUALITY BOARD ITEM #12 (JUNE 30, 2000). Authorize City staff to prepare a letter and/or testify to the Regional Board at an upcoming meeting opposing additional discharge of phosphorous into Peters Canyon Wash by Silverado Constructors. Motion by Mayor Pro Tem Adams to approve the Consent Calendar, except for those items removed (8, 19 and 27), and noting the amendment to the action on Item No. 16 made by City Manager Bludau. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway ITEMS REMOVED FROM THE CONSENT CALENDAR 8. AMENDMENT TO FRONT YARD SETBACKS ON PACIFIC DRIVE (PLANNING COMMISSION AMENDMENT 899) - AMEND DISTRICTING MAP NO. 16 TO ESTABLISH A LOT -BY -LOT FRONT YARD SETBACK FOR 13 PROPERTIES LOCATED ON THE SOUTHERLY SIDE OF PACIFIC DRIVE BETWEEN AVOCADO AVENUE AND THE WESTERLY SIDE OF BEGONIA AVENUE DUE TO THE VACATION OF A PORTION OF THE PUBLIC RIGHT -OF- WAY; AMEND SECTION 20.10.030 AND SECTION 20.10.040 OF THE ZONING CODE TO ADD CLARIFYING LANGUAGE FOR DETERMINING THE CALCULATION OF BUILDABLE AREA FOR THE SUBJECT PROPERTIES. Mayor Pro Tem Adams stated that he received a letter from Doug Lax, who spoke in opposition to the abandonment at the City Council meeting of June 13, 2000. Mayor Pro Tem Adams stated that Mr. Lax's letter is requesting that the City Council send the item back to staff for a redraft because the City Council's decision was based on inadequate information. Mayor Pro Tem Adams stated that the letter also included some photographs. Mayor Pro Tem Adams stated his belief that private improvements will exist within the right -of -way and that it is not uncommon. Council Member Debay stated that the Planning Commission thoroughly examined the item and that the necessary points were covered at the City Council meeting of June 13, 2000. Volume 53 - Page 445 INDEX Retirement/Misc. Employees C -563 (38/66) Waste Discharge Requirements/ Silverado Constructors (51) Ord 2000 -12 PCA 899 Front Yard Setback/ Pacific Drive (90/94) City of Newport Beach City Council Minutes June 27, 2000 Motion by Council Member Debay to adopt Ordinance No. 2000 -12 approving Amendment No. 899. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway 19. IRVINE TERRACE STREETLIGHT REPLACEMENT - AWARD OF CONTRACT (C- 3298). City Attorney Burnham stated that the issue is if the bid submitted by the apparent low bidder, Inspection Engineering Construction (IEC), is non- responsive for failure to provide evidence that they have successfully completed work of similar character in the past. He stated that he does not think that the City Council can declare IEC a non - responsive bidder, but does have the options of declaring the bid as non - responsive, of awarding the contract to IEC and waiving the irregularity, or of rejecting all bids. Public Works Director Webb asked that the second recommendation in the staff report be changed to state that the bid of IEC should be rejected as non- responsive, and to delete the language that states that IEC is not the lowest responsible bidder. Public Works Director Webb stated that he provided supplemental information to the City Council and IEC regarding the reference contacts made. He added that staff also met with IEC twice to provide them the opportunity to provide information related to projects that were of similar character to the project being bid. He stated that no projects of similar character were found, so the staff recommendation is still to consider the bid as non - responsive. Public Works Director Webb asked that the findings presented in the memorandum of June 26, 2000, be included in the action taken by the City Council. Jamal Deaifi, owner of IEC, commented on the engineer's staff report. He stated that IEC owns the most updated boring machine, which would allow for no impact to the local community during the conduit run. He added that most of IEC's traffic signal light projects have a streetlight on top of the traffic signal poles and are in a series circuit. He stated that these are similar to the project being bid. He concluded by stating that IEC also has an advantage over other bidders because of IEC's boring machine. Motion by Mayor Pro Tern Adams to approve the plans and specifications; 2) reject the bid of Inspection Engineering Construction (IEC) as non - responsive because the references provided were not for work of similar character, none of the projects listed were in primarily residential areas, the conduit boring operations previously performed were minor in comparison, none of the projects listed converted 5000 -volt series circuits system to 240 -volt multiple system while keeping the series conduit street Volume 53 - Page 446 INDEX C -3298 Irvine Terrace Streetlight Replacement (38) City of Newport Beach City Council Minutes June 27, 2000 lights in operation and none of the references submitted indicated the capability of IEC to maintain a project spread out over a significant area; 3) find the second low bidder is the "lowest responsible bidder" and award Contract No. 3295 to F.J. Johnson, Inc. of Anaheim for the total bid price of $272,466.30; 4) authorize the Mayor and the City Clerk to execute the contract; and 5) establish an amount of $22,440 to cover the cost of unforeseen work. The motion carried by the following roll call vote Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway 27. GENERAL PLAN AMENDMENT 2000 -2 - REQUEST TO INITIATE AMENDMENTS TO THE NEWPORT BEACH GENERAL PLAN AS FOLLOWS: A) NORTHWEST CORNER OF MACARTHUR BOULEVARD AND SAN JOAQUIN HILLS ROAD: A PROPOSAL TO CHANGE THE LAND USE DESIGNATION AND DEVELOPMENT ALLOCATION FOR THIS SITE FROM RECREATIONAL AND ENVIRONMENTAL OPEN SPACE TO GOVERNMENTAL, EDUCATIONAL AND INSTITUTIONAL FACILITIES, TO ALLOW THE PROPERTY TO BE DEVELOPED WITH A CHURCH AND RELATED USES; B) 600 ST. ANDREWS ROAD (ST. ANDREWS PRESBYTERIAN CHURCH): A PROPOSAL TO INCREASE THE DEVELOPMENT ALLOCATION FOR THIS SITE TO ALLOW AN APPROXIMATE 54,600 SQ. FT. ADDITION TO AN EXISTING CHURCH COMPLEX, WHICH MAY INCLUDE A YOUTH CENTER, CLASSROOMS, OFFICES AND A PARKING STRUCTURE; AND C) HARBOR AND BAY ELEMENT OF THE GENERAL PLAN: THE PROPOSED HARBOR AND BAY ELEMENT WOULD BE AN OPTIONAL ELEMENT OF THE GENERAL PLAN. Council Member Thomson stated that the item includes three separate general plan amendments. Motion by Council Member Thomson to split the three amendments into three separate actions. Council Member O'Neil stated that it was brought to his attention that a technical error was made when computing the square footage at 100 Newport Center Drive. He stated that the owner's architect determined that there was a 790 square foot difference between what the general plan entitlement allows and the existing floor area. Council Member O'Neil suggested that a fourth general plan amendment initiation be added to the list to increase the permitted floor area at 100 Newport Center Drive from 12,207 square feet to 13,002 square feet. Council Member Thomson accepted the amendment to the motion. The amended motion carried by the following roll call vote: Volume 53 - Page 447 INDEX GPA 2000 -2 MacArthur Blvd & San Joaquin Hills Road/ St. Andrew's Presbyterian Church/ Harbor & Bay Element (45) City of Newport Beach City Council Minutes June 27, 2000 INDEX Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway Motion by Council Member Thomson to initiate an amendment to the General Plan for 100 Newport Center Drive to increase the permitted floor area from 12,207 square feet to 13,002 square feet. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway Motion by Council Member O'Neil to initiate an amendment to the General Plan, as recommended by the Planning Commission, for the Harbor and Bay Element. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway Assistant City Manager Wood stated that the general plan amendment for 600 St. Andrews Road (St. Andrew's Presbyterian Church) is a proposal to increase the development allocation for the site to allow an approximate 54,600 - square foot addition to the church complex. Council Member Glover stated that the church is in her district and she believes it is premature to initiate a general plan amendment. Council Member Glover stated that the church is located in a residential neighborhood and that more information is needed for such an expansion. She stated that the area is highly impacted in regards to parking and traffic due to the high school and the residential area. She asked if the applicant could do some community work and provide more concrete plans before initiating the general plan amendment. Council Member Debay clarified that the action before the City Council at the current meeting is to initiate public hearings only and not to approve the projects. Assistant City Manager Wood additionally stated that the agendas for both the Planning Commission and City Council meetings were posted for the initiation phase, that public notices would also be required if environmental documentation is needed and, finally, that agendas would be posted for any public hearings. John Huffman, Pastor of St. Andrews Presbyterian Church, stated that St. Andrews is one of the oldest institutions in the community and is here to Volume 53 - Page 448 City of Newport Beach City Council Minutes June 27,2000 E!N serve the community. He stated that their concerns are the parking situation at the church and the young people. He stated that the church currently shares the Newport Harbor High School's parking lot. He said the desire is not to expand the church, but to enhance the quality of the ministry in the community. He said they would like to provide a center for kids to come to after school and refurbish their site. Pastor Huffman stated that he is open to pursuing other ways to accomplish these needs. He stated that they want to be sure that they have community support. Mayor Pro Tem Adams clarified with Assistant City Manager Wood that general plan initiations are done three times per year. Mayor Pro Tem Adams asked the applicant how he felt about a four -month delay. Pastor Huffman stated that they are already trying to do the groundwork, but that the church does not want to continue if the City does not feel that the project is viable. Council Member Glover confirmed with Pastor Huffman that he would like the item to be voted on at the current meeting. Council Member O'Neil confirmed that there would be further opportunity for public input if the general plan amendment is initiated. Assistant City Manager Wood did not know if the project would require an environmental impact report (EIR), but that there would be further public hearings before the Planning Commission and the City Council. Council Member O'Neil stated that the use of the site provides a tremendous community benefit. He stated that he knows that Council Member Glover also understands the need for the facility, but is concerned regarding the timing of the initiation. Council Member O'Neil asked for Council Member Glover's suggestion on how best to proceed. Council Member Glover asked the City Attorney if it would be possible to require the applicant to have a community outreach program. City Attorney Burnham stated that the action being recommended at the current meeting could not be conditioned with such a request. He stated, however, that the City Council could encourage St. Andrews to conduct a community outreach program. Pastor Huffman stated that the intent is only to enhance the quality of the community. He stated that they are in the beginning stages only and are very aware that community support is needed. He said plans and designs have not been done yet, but they know they need additional parking. Motion by Council Member Glover to initiate an amendment to the General Plan, as recommended by the Planning Commission, for 600 St. Andrews Road (St. Andrews Presbyterian Church). Council Member Glover stated that there must be a tremendous amount of community input. Mayor Noyes suggested that Pastor Huffman work with Council Member Glover on the process. Volume 53 - Page 449 City of Newport Beach City Council Minutes June 27, 2000 INDEX The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway Council Member Thomson stated that the final general plan amendment to consider at the current meeting is regarding the 12 -acre parcel on the northwest corner of MacArthur Boulevard and San Joaquin Hills Road. He stated that the amendment is to change the land use designation from recreational and environmental open space to governmental, educational and institutional facilities. Council Member Thomson stated that he understands that a church may be placed on the property and expressed his concern for access to and from the property. Further, he expressed his concern for the open space that would be lost if the land use designation is changed. He suggested that further studies be done on how the property can be utilized and how the traffic would be handled. Council Member Thomson requested that there be more public input before an initiation is approved. Motion by Council Member Thomson to deny the initiation of the amendment to the General Plan for the northwest corner of MacArthur Boulevard and San Joaquin Hills Road. Motion failed for lack of a second. Council Member O'Neil stated his familiarity with the general amendment request. He stated that he has talked with representatives from St. Mark Presbyterian Church regarding their desire to relocate their facility from Mar Vista Drive to MacArthur Boulevard and San Joaquin Hills Road. He stated that their reason is to allow for the possible expansion of Our Lady Queen of Angels School. He stated that a lottery system is currently used to register children into the K through 8 school. Council Member O'Neil stated that although there may be other locations to put the St. Mark Presbyterian Church, an extensive survey was done for vacant land in Newport Beach and the MacArthur Boulevard and San Joaquin Hills Road site was determined to be the best and most available piece of property. He stated that if the initiation is approved, there would be opportunities for traffic studies. He added that the church would need to go through a tremendous amount of fundraising, but needs some preliminary information before they can begin the process. Council Member O'Neil stated that he feels the project is worthwhile. Motion by Council Member O'Neil to initiate an amendment to the General Plan, as recommended by the Planning Commission, for the northwest corner of MacArthur Boulevard and San Joaquin Hills Road. Council Member Debay confirmed with Assistant City Manager Wood that an initiation to an amendment is followed by many public hearings, studies and a vote would still be taken on the approval of the project itself. Mayor Noyes stated that he supports many of Council Member Thomson's Volume 53 - Page 450 City of Newport Beach City Council Minutes June 27,2000 !!►LL3 comments and agrees that using open space must be done carefully. He suggested that the possibility to trade it for other open space should be considered. Council Member Thomson asked if Council Member O'Neil would add recreational and environmental open space as an option for the land use designation at the site. City Attorney Burnham stated that it would be unnecessary because if the general plan amendment is denied, the site would remain as recreational and environmental open space. Council Member O'Neil stated that he would support the retention of the site as open space if the specified project were not approved. Jan Vandersloot, 16th Street, stated his support for Council Member Thomson's comments and the site remaining as open space. He requested that if a facility is approved for the site, that the applicant be made responsible for replacing the open space acres lost. Dr. Vandersloot requested that an environmental impact report (EIR) be prepared and that traffic and open space issues be addressed. Bob Caustin stated his support for Council Member Thomson's motion. He stated that he knows families who have had to go through the lottery system to enable their children to attend Our Lady Queen of Angels School, but that the issue of open space should not be looked at in conjunction with the expansion request. He urged the City Council to look at the open space and traffic issues only. Bernie Rome, President of the Big Canyon Community Association, stated his support for Council Member Thomson's comments. He stated that the MacArthur Boulevard and San Joaquin Hills Road site is in a very prominent location, with many people driving by it from the 73 Freeway to Newport Center. He stated that a site that was rightfully set aside as open space should remain as open space, regardless of the use needed. Mr. Rome stated that other developers have found that the site is not useable because only one driveway is possible. He stated that the cross traffic in the area is already a nightmare, and cited San Miguel Drive and MacArthur Boulevard as an example of such a problem. He stated that the only use of the site that makes sense is for Big Canyon to use the space, since it is near a gate they already use. Mr. Rome added that he understands that Our Lady Queen of Angels can meet their expansion needs at their current site. He urged the City Council to support Council Member Thomson's motion. Mr. Rome stated that his comments did represent those of the Big Canyon Community Association Board. Council Member Glover confirmed with City Attorney Burnham that the site is not a parcel in the Circulation Improvement and Open Space Agreement (CIOSA). She further confirmed that The Irvine Company owns the property. Planning Director Temple stated that the site has always been designated as open space in the City's general plan. She stated that it was a residual right -of -way piece of property reserved by The Irvine Company at the time Volume 53 - Page 451 City of Newport Beach City Council Minutes June 27, 2000 INDEX the 73 Freeway was planned to tie in with Coast Highway, and was to be part of a one -way couplet utilizing Avocado Avenue and MacArthur Boulevard. Council Member Glover confirmed with Planning Director Temple that the parcel differs from the site above the Central Library because it is not a part of CIOSA and would not be donated to the City. Council Member O'Neil urged a favorable vote on the initiation, so that the project can be considered prior to the next general plan amendment initiations. He stated that if community support is not received during the planning process, he did not feel that St. Mark Presbyterian Church would want to proceed with the project. He added that he would not vote for the project if the community support is not there and if it is not found to be environmentally sound. Mayor Pro Tem Adams asked about the one -way couplet idea. He stated that Coast Highway was designed to use the couplet, with Avocado Avenue handling all of the southbound traffic and MacArthur Boulevard handling the northbound traffic. He stated that there currently is a problem with getting cars into Newport Center on San Miguel Drive and San Joaquin Hills Road, as well as the issue of traffic volumes on the adjacent neighborhoods east of MacArthur Boulevard. Mayor Pro Tem Adams stated the there are a lot of issues associated with the use of the site, and requested that the one- way couplet also be considered. Tracey Baltera stated her support for Council Member Thomson's comments. She expressed her affection for Newport Beach and stated that the site should remain as open space. She stated that views should be preserved and open space should be left as open space. Council Member Thomson stated that his family attends Our Lady Queen of Angels, but he feels strongly that open space needs to be preserved. He stated that the focus should be on assisting St. Mark Presbyterian Church with a different location. Council Member Debay stated that she understands both sides of the issue. She confirmed with Assistant City Manager Wood that the applicant, The Irvine Company, does not have a representative in attendance at the current meeting. Council Member Debay clarified that an initiation is only a beginning step and that future public hearings would take place. Mayor Pro Tem Adams agreed that keeping the site as open space is a good one, and wants the circulation issues to be looked at throughout the public process. Council Member O'Neil stated that he supports the project and feels that it is an appropriate use of the site, but he is feeling that there is not support for even the initiation of the general plan amendment from the City Council or the public at the current meeting. He stated that he doesn't feel that St. Mark Presbyterian Church would want to relocate if the community does not support the idea. Volume 53 - Page 452 City of Newport Beach City Council Minutes June 27, 2000 INDEX Council Member O'Neil withdrew his motion. Mayor Noyes stated that times in the City are very controversial right now, that open space is limited and that it's not the time to add another project for the public to look at. He stated that other issues should be resolved before new ones are taken on. Motion by Council Member Thomson to deny the initiation of the amendment to the General Plan for the northwest corner of MacArthur Boulevard and San Joaquin Hills Road. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway PUBLIC COMMENTS Bob Caustin thanked staff for their assistance in bringing to light the issues that are affecting Newport Bay. He stated that Defend the Bay is seeking public support to keep the $13 million that was designated for Newport Bay dredging. He stated that Defend the Bay is distributing flyers asking the public to contact Governor Davis. Mr. Caustin stated that anyone wishing to receive information can call Defend the Bay at 722 -7822. Council Member Debay stated that a project will be started on San Miguel Drive between MacArthur Boulevard and Avocado Avenue. She stated that the project will take 45 working days, or three months. Public Works Director Webb added that the work should begin around the beginning of August, and that some traffic congestion problems are expected but will be minimized as much as possible. PUBLIC HEARINGS 29. APPEAL OF PLANNING COMMISSION'S DENIAL OF VARIANCE NO. 1237 - NAVAI RESIDENCE (JIM NAVAI, APPELLANT). Continued the hearing to July 25, 2000, at the request of the appellant. CONTINUED BUSINESS 31. APPOINTMENTS TO BOARDS AND COMMISSIONS. Mayor Noyes announced that the City Council would be voting for one vacancy on the Board of Library Trustees and that the nominees were William Adams and Walter Howald. He stated that there were two vacancies on the City Arts Commission with the nominees being Lyn Belasco (incumbent), Arlene Cartozian (incumbent), Patricia Stark and Catherine Turco. Mayor Noyes stated that the two vacancies on the Civil Service Volume 53 -Page 453 Variance 1237 Appeal (91) Appointments to Boards and Commissions (24) City of Newport Beach City Council Minutes June 27, 2000 Board would be selected from the Fire & Police Association Nominees, which were Timothy Brown, Paula Godfrey, Sidney Stokes and Douglas Wood. And, lastly that the Planning Commission vacancy would be chosen from Shant Agajanian and Jeffrey Cole. City Clerk Harkless read the votes as follows: Mayor Noyes - Howald; Belasco, Cartozian; Godfrey, Wood; Agajanian. Council Member Thomson - Howald; Belasco, Cartozian; Godfrey, Wood; Agajanian. Council Member Glover - Howald; Belasco, Cartozian; Godfrey, Wood; Agajanian. Mayor Pro Tem Adams - Howald; Belasco, Cartozian; Godfrey, Wood; Agajanian. Council Member O'Neil - Howald; Belasco, Cartozian; Godfrey, Wood; Agajanian. Council Member Debay - Howald; Belasco, Cartozian; Godfrey, Wood; Agajanian. City Clerk Harkless announced the appointment of Walter Howald to fill the vacancy on the Board of Library Trustees, Lyn Belasco and Arlene Cartozian to fill the two vacancies on the City Arts Commission, Paula Godfrey and Douglas Wood to fill the two vacancies on the Civil Service Board and Shant Agajanian to fill the vacancy on the Planning Commission. Mayor Noyes congratulated those that were appointed and thanked them for volunteering their time. 32. REPORT FROM CITY ATTORNEY ON NEWPORT VILLAGE PARCEL - PROPOSED ARTS & CULTURAL CENTER - SUMMARY OF LEGAL ISSUES (contd. from 6/13/00). City Attorney Burnham stated that a request was submitted to the City Council at its meeting of June 13, 2000, to reserve approximately 3 1/2 acres of land north of the Central Library for an arts and cultural center. He stated that the request was submitted by an ad hoc committee, primarily comprised of members of the Board of Library Trustees and the City Arts Commission. He stated that the proposed arts and cultural center would occupy approximately 22,000 square feet of building, and possibly a parking structure and an access bridge. City Attorney Burnham stated that the matter was referred to his office to look at some of the legal issues. He stated that the recommendation is for the City Council to deny the request for reservation without prejudice because the proposed use is not consistent with the general plan and there has been no environmental documentation prepared. City Attorney Burnham stated that if the City Council desires to pursue the project Volume 53 - Page 454 INDEX Newport Village Parcel/ Arts & Cultural Center (62) City of Newport Beach City Council Minutes June 27, 2000 INDEX further, that an ad hoc committee should be appointed. He stated that the ad hoc committee should be comprised of members of the City Council, the Arts Commission, Library Board of Trustees and the Parks, Beaches & Recreation Commission, and should meet with the parties interested in the site. He stated that the ad hoc committee should look at multiple uses for the site and obtain the additional information needed if an environmental report or a general plan amendment are determined to be necessary. City Attorney Burnham stated that, finally the City Council members on the ad hoc committee should report back to the City Council. Jan Vandersloot, Stop Polluting Our Newport (SPON) Steering Committee, objected to the fact that the item was moved up on the agenda since some people wouldn't have expected it to be before the City Council so early in the meeting and may not be present to express their viewpoints. Dr. Vandersloot stated that SPON feels that the property should remain as open space. He stated that the area should be developed as a park and that any structure built on the site, such as parking, should be compatible with a park. He stated that possibly an educational component could be incorporated, but clarified that this was his opinion and not necessarily that of SPON's. He stated that the composition of the ad hoc committee should include people who want the site to remain as open space. He stated that the library exchange agreement kept this site as open space because of development that occurred elsewhere. Don Martin, 423 Vista Flora, Corona del Mar High School Principal, stated that the Corona del Mar High School staff and Foundation have held a vision for a performing arts theatre. He stated that currently the students have to go to the Newport Harbor High School campus for performances, which is cumbersome and undesirable. He stated that a joint use facility had been discussed and Walter Howald suggested the site above the Central Library. He stated that the Foundation financially and conceptually supports the utilization of this site for a theatre. He stated that the number of students attending Corona del Mar High School continues to grow, and that a joint use facility on that side of the bay would be desirable. Don Gregory, 601 Lido Park, Arts Commissioner, stated that he spoke at the City Council meeting of June 13, 2000, to request the arts and cultural center. Mr. Gregory stated his support for the City Attorney's recommendation and feels that the process is now finally beginning. He stated that his request for the center was contingent on many things and this process would allow for those things to be studied and talked about. He stated that an intelligent and cooperative coalition should be able to come up with multiple uses for the site and make it work for everyone. Council Member Debay asked Mr. Gregory's feelings about a park at the site along with an arts and cultural center, both sharing the same parking lot. Mr. Gregory stated that he totally agreed with the concept and feels that a park is the perfect setting for an arts and cultural center. He stated that it is important for the public to have a place to relax and learn. Debra Allen, 1021 White Sails Way, thanked the City Council for moving the item up on the agenda so that those wishing to comment would not have to Volume 53 - Page 455 City of Newport Beach City Council Minutes June 27, 2000 INDEX wait until so late in the evening. She stated that the Corona del Mar Residents Association requests that the site be looked at as a whole and that all 12 acres be considered together. She stated that she would like to see most, or all, of the land remain as open space, but that an arts and cultural center could possibly be looked at in conjunction with a park. Mayor Noyes stated that the site will be looked at as one parcel, and is the reason for the City Attorney's recommendation to include a variety of interests in the ad hoc committee. Tracey Baltera stated that she was appalled when she first went to the Central Library and couldn't find a tree nearby to sit under to read her book. She stated her disappointment in anyone wanting to put a building on open space and block the public's view. She stated that a facility that wouldn't block views could be incorporated into the site. She stated that the use of the site should be voted on by the public. Val Skoro, 1601 Bayadere Terrace, member of the Parks, Beaches & Recreation Commission, stated his support for Ms. Allen's comments. He stated that many public hearings should take place before a decision is made on the site and that a consensus should be reached. Mr. Skoro stated that the Parks, Beaches & Recreation Commission has not reviewed the request for an arts and cultural center, but he did state his agreement with prior comments that the entire parcel be considered at the same time. Motion by Mayor Pro Tern Adams to 1) deny the request for reservation without prejudice to reconsideration at some future date; 2) direct the ad hoc committee to: (a) meet with interested parties, members of the community and potentially impacted residents to determine their position on Center and the appropriate use(s) of Newport Village; (b) determine if the Center would preclude other uses of Newport Village site that may have support in the community; (c) obtain any information necessary to initiate general plan/zoning amendments for the Center if the Council were inclined to do so; and 3) request that the ad hoc committee report the findings and make recommendations to the City Council after completing the tasks outlined in 3 (a)-(c)• The motion carried by the following roll call vote Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway Mayor Noyes appointed Council Members Glover (Chairman) and Thomson, Don Gregory from the Arts Commission, Catherine Saar - Kranzley from the Board of Library Trustees and Debra Allen from the Parks, Beaches & Recreation Commission to serve on the ad hoc committee. Mayor Noyes stated his optimism that the ad hoc committee can work together at looking at all of the options for the site. He added that the meetings of the ad hoc committee would be open to the public and properly Volume 53 - Page 456 City of Newport Beach City Council Minutes June 27, 2000 noticed. CURRENT BUSINESS 33. 2000 -01 BUDGET ADOPTION. City Manager Bludau stated that the City Council has reviewed the budget over three two -hour study sessions: He stated that there are two components needing action at the current meeting. City Manager Bludau stated that the first item for consideration was the budget checklist, which totals $3,637,774. He stated that the budget checklist is made up of supplemental requests, the reorganization of the Marine Division, Haz Mat program restructuring and capital improvement program rebudgets. He stated that $529,000 of the total is offset by oil spill recovery funds and $723,217 is considered "new monies ". City Manager Bludau stated that the second item needing action is the adoption of the budget resolution. Council Member Debay confirmed with City Manager Bludau that the entire budget checklist could be included in the budget adoption. Motion by Council Member O'Neil to include all the checklist items in the 2000 -01 Budget. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway Motion by Council Member Debay to adopt Resolution No. 2000 -62 adopting the City's 2000 -01 Budget, as amended by the approved checklist items, for a total budget of $138,087,281. Council Member Glover stated her appreciation to the City Manager for the format in which the budget was presented. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: Ridgeway 34. ANALYSIS OF PROTECTION FROM TRAFFIC AND GROWTH INITIATIVE. Item continued. PUBLIC HEARING 30. NEWPORT DUNES RESORT (NEWPORT DUNES PARTNERSHIP, Volume 53 - Page 457 INDEX Res 2000 -62 FY 2000 -01 Budget Adoption (40) Protection from Traffic and Growth Initiative /Gr e e nlight (39) Newport Dunes City of Newport Beach City Council Minutes June 27, 2000 APPLICANT) - A GENERAL PLAN AMENDMENT, LOCAL COASTAL PROGRAM LAND USE PLAN AMENDMENT, ZONING CODE AMENDMENT, AND PLANNED COMMUNITY DISTRICT PLAN FOR THE 100 -ACRE NEWPORT DUNES PROPERTY AND A CONCEPTUAL PRECISE PLAN FOR A HOTEL AND TIME -SHARE COMPLEX WITH CONFERENCE, MEETING, AND BANQUET FACILITIES, RESTAURANTS, A HEALTH CLUB AND SPA, RETAIL AND SERVICES AREAS, AND SWIMMING POOLS AND LANDSCAPED GARDEN AREAS (contd. from 6/13/00). Mayor Noyes stated that Ed Selich, Chairman of the Planning Commission, made a presentation at the City Council meeting of June 13, 2000, that outlined the process used by the Planning Commission to evaluate the proposed Newport Dunes Resort project. Mayor Noyes announced that the hearing would be closed at 12:00 a.m. and that a fifteen- minute break would take place at 9:45 p.m. He stated that presentations would be provided by the applicant, the Environmental Quality Affairs Citizens Advisory Committee (EQAC) and a group of residents who live around the bay. He stated that these presentations would be followed by individual testimony. Planning Director Temple began by comparing the development with the settlement agreement, which was adopted and approved by the County, the City and the applicant. She stated that the existing facilities include: 7500 square feet of marine repair facility and coffee shop, a meeting room that seats 100 people, 7000 square feet of office and administrative headquarters, a 440 -space recreational vehicle (RV) park with supporting facilities, a 200 - boat marina with supporting facilities, a 400 -space dry boat storage area, a 6 -lane boat launching ramp and a 185 -space boat trailer storage. Planning Director Temple stated that the settlement agreement does envision additional development, including a 275 -room family inn to be located on the west side of the swimming lagoon. She stated that the family inn is required to have kitchen facilities in 40% of the units, is allowed to have recreational and fitness equipment, but is not allowed any permanent audio /visual facilities or equipment. She stated that the total size of the facility can be up to 500,000 square feet with a height limit of 38.5 feet, and a pitched roof requirement. Planning Director Temple stated that a 12,500 - square foot net public area restaurant located adjacent to, or within, the family inn is also permitted. Additionally, a 15,000- square foot net public area freestanding restaurant is permitted under the settlement agreement. She explained that "net public area" in reference to restaurants is usually 60% of the overall total. Planning Director Temple stated that the settlement agreement also allows for 5000 square feet of freestanding commercial and office space. Council Member O'Neil asked for the City Attorney to explain the settlement agreement, what it settled and if the proposed recommendation of the Planning Commission would violate it. City Attorney Burnham stated that the settlement agreement resolved litigation that was filed by the City against the County, related to the approval of the redevelopment plan for the Volume 53 - Page 458 INDEX Resort/ GPA 97 -3(F)/ PCA 878 (45) City of Newport Beach City Council Minutes June 27, 2000 INDEX Dunes. The City contended that the environmental impact report (EIR) prepared by the County was inadequate. City Attorney Burnham stated that the development agreement would not violate the settlement agreement because they are separate documents, but that if all statutes of limitations for legal or electoral challenges to the development agreement expire, the development agreement would supercede the settlement agreement. He added that if the development agreement is not approved, the Dunes has the vested right to proceed with the development that remains under the settlement agreement. Mayor Pro Tem Adams asked what approval process is necessary to develop the site pursuant to the settlement agreement. City Attorney Burnham stated that it would just be the payment of the remaining fees and the submittal of the necessary building permit applications. Per Mayor Pro Tem Adams' request, City Attorney Burnham explained that an amendment to the settlement agreement in the mid to late 1980's reformulated the manner in which the traffic fees would be paid and also changed the manner in which the restaurant entitlement could be constructed. He added that other amendments may have affected the dry boat storage, the boat slips, the marina amenity building and the Back Bay Cafe. Mayor Pro Tem Adams stated that the 275 -room family inn can have up to 500,000 square feet of floor area. He stated that the floor area seems high when compared to the proposed project and the total number of rooms. City Attorney Burnham stated that he did not know how the numbers were determined. Mayor Pro Tem Adams explained that the square footage for the family inn is similar to the proposed development, which has 370 rooms and 75 timeshares. City Attorney Burnham suggested that possibly the 500,000 square feet might have been a reduction from the redevelopment plan. He added that the family inn would also have kitchenettes and was possibly expected to have larger rooms. Mayor Pro Tem Adams asked what total square footage is being requested for the proposed development. He stated that he wanted to understand the difference between the entitled facility and the proposed facility. Planning Director Temple stated that the proposed hotel is 421,000 square feet with the timeshare buildings occupying 160,000 square feet for a total of approximately 580,000 square feet. Mayor Pro Tem Adams asked for a calculation to be made of the total square feet allowed under the settlement agreement, including the restaurants. Mayor Noyes opened the public hearing. Anne Evans, Chairman of Evans Hotels, the owner /operator of the Newport Dunes Resort, stated that four years ago they began the process of bringing forward their vision for an improved Newport Dunes Resort. She stated that she is thrilled to be before the City Council to present their exciting proposal. Ms. Evans stated that Evans Hotels is the owner /operator of several hotels, including the Bahia Resort Hotel and Catamaran Resort Hotel on Mission Bay and the Lodge at Torrey Pines. Ms. Evans stated that Evans Hotels has been involved at the Newport Dunes Volume 53 - Page 459 City of Newport Beach City Council Minutes June 27, 2000 INDEX for approximately thirty years, investing almost $40 million. She displayed some slides that showed the original facility and other points made in her presentation. She stated that the process has been character building and given them the opportunity to know the Newport Beach area well. Robert Gleason, Chief Financial Officer of Evans Hotels, stated that he had a lot of material to cover and that much of it is the outgrowth of several Planning Commission hearings and questions raised. Mr. Gleason also used an overhead projection while discussing his points. Mr. Gleason stated that the Dunes Resort is located on 100 acres of State tidelands. He stated that there is a long -term ground lease with the County that has about forty years left on its term. He showed an overhead projection of the Newport Dunes and the surrounding area. Mr. Gleason stated that the first phase of the complete renovation was begun in 1989 and covered the bulk of the land area. He stated that the second phase began shortly thereafter and included a marina and landside facilities. He stated that they are now prepared to undertake the ambitious third phase of the project. Mr. Gleason stated that the settlement agreement was approved by the City in 1983 and based upon the Dunes' 1980 development proposal. He stated that the settlement agreement called for a motel/restaurant/retail complex totaling a maximum of approximately 530,000 square feet, with access via Bayside Drive. He stated that it only included unit count, square footage and height restrictions. Mr. Gleason stated, however, that after careful review by the Dunes, it was decided that the project did not meet the needs of the City, the community or the Newport Dunes. He stated that the project currently being proposed is much different than the previously approved project. Mr. Gleason stated that the Dunes hired Wimberly Allison Tong & Good (WATG) to design the project. He stated that WATG is the world's preeminent hotel architects, are locally based and known for such projects as the Four Seasons in Newport Beach and the Ritz - Carlton in Laguna Niguel. Mr. Gleason showed the proposed site plan and noted the 370 -room hotel, the other amenities included in that same building, the 31,000 square foot conference center and the 75 two - bedroom timeshares. He compared the hotel room count to the 570 -room Marriott, the 435 -room Sutton Place and the 405 -room Hyatt Newporter. Mr. Gleason showed that parking would be located in two areas, with the majority in a three -level parking structure. He stated that the main entrance would be from Bayside Drive, as was approved in the settlement agreement, and includes a bike trail and sidewalk. Mr. Gleason showed some three - dimensional virtual tours of the site. The tours included entry into the project at Bayside Drive, an overall tour of the project, the central courtyard and the active courtyard. Mr. Gleason continued his presentation by discussing the real and perceived impacts of the project. He stated that the items were dealt with by the Planning Commission but that due to an extensive community outreach Volume 53 - Page 460 City of Newport Beach City Council Minutes June 27, 2000 INDEX program, the Dunes knew of the impacts before the hearings with the Planning Commission. He stated that the community outreach program began approximately eighteen months ago and included seeking input from City residents, project neighbors, community groups and community associations. He stated that the Dunes communicated with thousands of people and even created a project - specific website at www.newportdunes.com. He stated that the site averages between 150 and 200 hits per week. Mr. Gleason summarized the Planning Commission process, as discussed by Mr. Selich at the City Council meeting of June 13, 2000, by stating that there were ten Planning Commission hearings which led to extensive plan changes, concessions, compromises and conditions on the project. He stated that they were proud to receive the Planning Commission's unanimous recommendation for approval. Mr. Gleason listed the plan changes made during the Planning Commission process as including the reduction in timeshare units from 100 to 75 and the reduction in the lock -off capability, or the capability to rent the two - bedroom units separately, from 100 to 25. He stated that the conference center was reduced by approximately 25 %, to 31,000 square feet. He stated that the overall height reductions included the elimination of all fifth floor elements and the elimination of third and fourth floor elements along the marina timeshare section. He said these reductions resulted in only 17% of the buildings being over three stories. Mr. Gleason stated that the first impact identified was the potential land use conflict. He stated that the Dunes met with the Bayside Village residents over fifteen times to hear their concerns and attempt to create solutions. He stated that, as a result, two major changes were made which included the addition of a gatehouse and changes to service access. He stated that the addition of a gatehouse will improve access for the Bayside Village residents by controlling the intersection. He listed the changes that were made to the common property line with Bayside Village, which included the relocation of the employee and delivery access from Bayside Drive to Back Bay Drive. He showed that the new layout on the common property line would include the existing wall plus a greenbelt, a bike trail, another greenbelt, a sound wall, more landscaping, the service and emergency road and more landscaping. He stated that the original building setback of fifty feet was increased to a minimum of 100 feet and an average of 115 feet. Mr. Gleason stated that plan changes were also made to address the concerns of the residents at Dover Shores. He stated that their concerns primarily related to the timeshare units. He stated that the changes made included the removal of one of the building on the bulkhead, reducing pad heights, increasing the setbacks and reducing the units to two - story. Mr. Gleason showed an image illustrating the extent of the plan changes. Mr. Gleason stated that the issue of traffic is foremost in everyone's mind and is the most important issue on any project. He stated that the first question usually asked is regarding a better entrance to the hotel than Bayside Drive. Mr. Gleason stated that the Dunes, the Planning Commission and staff also felt that there must be a better alternative access point. He stated that five alternative proposals were studied. He showed Volume 53 - Page 461 City of Newport Beach City Council Minutes June 27, 2000 INDEX the five entrance alternatives in an illustration and stated that due to planning, environmental and pragmatic issues, the determination was repeatedly made that none of the alternatives were practical or feasible. Mr. Gleason stated that the Back Bay Drive entrance alternative was brought up the most and he illustrated what the alternative would look like. He stated that the alternative would require the removal of RV spaces, relocation of day parking, removal of boat storage spaces and removal of some buildings. He added that the Back Bay Drive entrance alternative would also increase traffic along Mayflower. Mr. Gleason stated that another entrance alternative that was looked at was the Promontory Drive signalized intersection. He stated that the major obstacle with the alternative is the 45 -foot grade differential. He stated that other obstacles include removal of RV spaces, right -of -way issues and Coastal Commission concerns regarding bluff top development. Mr. Gleason added that there have also been little or no clear traffic benefits demonstrated by using the alternative. Mr. Gleason displayed a chart showing the City's consultant report on the trip generation for the proposed project compared with the original entitled settlement agreement proposal. Mr. Gleason explained that when the complete entitled project is looked at, the total trips equals 3,989 trips per day. With the new proposed project, the total is 3,600, or 389 fewer trips per day. Mr. Gleason pointed out that the trips were for City circulation as a whole and not exclusively trips on Bayside Drive. Mr. Gleason stated that the goal of the Dunes was also to reduce trips on Bayside Drive below the entitled amount. He stated that to address this, all employee and service trips would access the project on Back Bay Drive. Mr. Gleason stated that other features that reduce traffic impacts include the fact that most trips are off -peak, shuttle service would be provided for the airport and other local destination areas, and intersection improvements would be made at Bayside Drive and Coast Highway. Mr. Gleason stated that the conference facilities also received a great deal of traffic - related scrutiny. He noted that the trip generation factor does include the conference center, as well as all other project amenities. He stated that the statistic was confirmed by comparing the proposed conference space with comparative competitors and also using other studies. Mr. Gleason stated that the conference center will not generate the traffic that some expect because the meeting space is designed to sell hotel rooms and to attract group business, with several different rooms being utilized by a single group at one time. He added that operational constraints will limit the occupancy to less than the maximum allowed. Mr. Gleason stated, however, that due to continued concerns regarding the impacts of the conference center, the Dunes accepted limitations on its use. He stated that there are two conditions being placed on catered events that limit occupancy and arrivals /departures. He stated that one applies Monday through Friday and another applies to summer weekends. Mr. Gleason stated that the proposed project adequately provides for parking. He noted a parking analysis chart that provided a number of Volume 53 - Page 462 City of Newport Beach City Council Minutes June 27, 2000 INDEX figures and stated that the settlement agreement provided for 1.17 parking spaces per guest room, while the proposed project is providing 1.86 parking spaces per room. He stated that this is almost double that required of any other hotel in the City. Mr. Gleason stated that clean water is their business and they were a part of a pilot project that diverted non - resort runoff into the sewer system. He stated that they've also recently completed their water quality management plan. He stated that the plan includes best management practices, calls for all project runoff to go through settlement basins and clarifiers before entering the bay with no runoff into the lagoon, less paving surface than the original plan and trash traps on all drains. He stated that they have been working with a number of community organizations, including CoastKeepers. Mr. Gleason stated that the visual impacts of the proposed project were previously discussed, but that the net increase is less than 10% of the entitled project. He showed an illustration comparing the height reductions of the original proposal and the new proposal. He further explained that the roof heights of the two -story sections would be 25 to 33 feet, the three -story sections would be 30 to 40 feet and the four -story sections would be 44 to 53 feet. Mr. Gleason stated that the only exceptions would be elevator shafts and architectural details, which would have a maximum height of 62 feet. He stated that 83% of the project is two and three stories, while 17% of the project is four stories. Mr. Gleason stated that the views fall into three categories and include the views from the surrounding bluff top areas, the immediate neighbors and the swimming lagoon at the Newport Dunes. He stated that the EIR found no significant impact to the bluff top views or the immediate neighbors. He stated that since the Dunes is visible from so many areas, they created sixteen separate visual simulations. He stated that the visual simulations have been continually updated throughout the process as revisions have been made. Mr. Gleason showed visual simulations of the views from Coast Highway, Castaways, Villa Point, Sea Island, Harbor Cove, Bayside Drive, Bayside Village, Dover Shores and the eastside of the swimming lagoon. He stated that the EIR found a significant impact with the view from the beach at the Dunes. Mr. Gleason stated that the veracity of the visual images is assured in several ways. He stated that, first, there is a project condition that states that the project's final design and construction will conform to the images. He stated that they have also provided tangible proof through a physical representation of the project that was done with color -coded balloons in 23 locations. He stated that the balloons were flown for ten days and with photographs showed that the balloons were where they were predicted to be in the diagram. Mr. Gleason stated that in regards to noise impact, the EIR found that the only significant impacts were related to vehicular noise. He stated that the impacts could be mitigated by sound walls. He stated that the EIR found no other significant noise impacts because of the design of the project and Volume 53 - Page 463 City of Newport Beach City Council Minutes June 27, 2000 INDEX because of the City's stringent regulations and enforcement mechanisms. With the use of an overhead photograph of the site, Mr. Gleason explained that sound could travel in a straight line to the guests at the Hyatt Newporter 1500 feet away, but that sound traveling anywhere else is blocked by the project's buildings or the area's natural topography. He stated that the provisions of the City's noise ordinance, special and standard project conditions and the Planned Community District Plan regulate the noise from the property. He stated that these regulations include a maximum sound level of Five decibels less than the City's noise ordinance for certain noises, outdoor amplified music prohibited at night and a noise abatement program, if necessary. Mr. Gleason stated that due to public comments, the City performed additional noise analyses addressing the concerns of the Dover Shores residents. He stated that these studies found that the distance to their homes sufficiently attenuates sound. He stated that the affects of noise traveling over water or reverberating off hillsides were only found to have a slight effect on noise transmission. Mr. Gleason stated that no significant lighting impacts were found. He stated that it is, again, due to the physical design of the project and protection of normal City regulations and special conditions. He stated that the lighting levels are warm and low, and much of it is shielded from view. Mr. Gleason stated that a lighting plan will be submitted during further discretionary review of the project, and must show no spill or glare to adjacent sites, impact to the bluff top roadways, impact to off -site views or detract from biological resources. Mr. Gleason stated that the project is also subject to an evening inspection and the City may, at any time, order the dimming of the light sources. Mr. Gleason stated that the project meets a number of City needs, strengthens the local economy and provides a first -class quality project. He noted the experience and reputation of the architectural firm, the development agreement provisions, the Planned Community District Plan's design guidelines and the precise plan conditions. He added that the Planned Community District Plan is really the crux of the proposal and goes beyond basic zoning and entitlements. Mr. Gleason stated that the project also provides much needed conference space and catering venues. It is designed to attract the corporate conference segment of the lodging market and provides a larger catering venue for local civic and charitable groups. Mr. Gleason stated that the project also includes enhanced pedestrian and bicycle access by connecting trails on Coast Highway with an extensive series of trails internal to Newport Dunes. Mr. Gleason stated that the project provides significant new revenue to the City's general fund and to the local economy as a whole. He stated that the City's fiscal impact analysis showed $1.4 million annually in net new revenue from transient occupancy tax (TOT), sales tax and property tax. He added that the City's TOT collections would increase by almost 20% and that Newport Dunes would become the City's third highest revenue contributor. Mr. Gleason stated that the figures do not include the other benefits to the Volume 53 - Page 464 City of Newport Beach City Council Minutes June 27, 2000 W1!) local economy, which include an estimated $25 million spent annually by guests of the property in local businesses and a reduction of seasonal fluctuations due to the timeshares and conference center. He added that timeshare guests typically spend 30% more than hotel guests. He noted that timeshare units produce 12% more revenue than hotel units because of the higher property and sales tax collected. Mr. Gleason stated that the local schools will also benefit through the building fees and the ongoing property tax contribution. Mr. Gleason stated that the concern for property values was addressed by contacting an expert in urban economics, Mr. Louis Masotti, who concluded that higher -end hotel projects are generally economically beneficial and serve to enhance community reputation and property values in the area. Mr. Gleason stated that the major components of the development agreement include a quality assurance guarantee, that over $1 million be paid in traffic - related fees and construction costs, and the imposition of an occupancy -based fee for timeshare exchangers. Mr. Gleason added that the Newport Dunes will also contribute $75,000 to programs to improve water quality or the environment, accept responsibility for the permanent diversion of the storm drain, contribute $25,000 to the marine educational facility on Shellmaker Island and contribute $200,000 to a view park at Coast Highway and Jamboree Road. Mr. Gleason concluded his statement by saying that the Newport Dunes is pleased to present their project, looks forward to continued public input and has tried hard to minimize the impacts of the project. He stated that they believe that the project is good not just for Newport Dunes, but for the citizens of Newport Beach and for the City itself. Robert Hawkins, Chairman of EQAC, stated that EQAC was formed by Resolution 87 -14 and restructured by Resolution 98 -17. He stated that, pursuant to the resolutions, EQAC was expected to review and make recommendations on EIR's, receive local homeowner association input and to provide information back to local homeowner associations. Mr. Hawkins stated that EQAC met at least four times regarding the Dunes proposal, formed a subcommittee, which also met several times, listened to members of the public and, finally, developed written and oral comments on the project. Mr. Hawkins thanked the City Council for allowing EQAC to give a presentation at the current meeting and he acknowledged the Planning Commission for their fine effort and hard work. He stated that EQAC still has several remaining issues. He stated that he will cover the first four which include the project description and visual impacts, water resource impacts and mitigation, noise and lighting impacts, and public access impacts. He stated that Barry Eaton, EQAC member, would discuss the issues regarding traffic and parking. Mr. Hawkins stated that Mr. Gleason acknowledged that the EIR recognized that there would be significant and unavoidable impacts on one particular viewscape, but failed to note that there would also be cumulative impacts Volume 63 - Page 465 City of Newport Beach City Council Minutes June 27, 2000 L 01 that could not be mitigated. Mr. Hawkins stated that since the Dunes has not provided a model that would show the impacts, the full extent or possible mitigation of the impacts are not known. He stated that EQAC has urged the applicant to develop a three - dimensional model. He stated that the balloon outline was an attempt to address the issues, but its success was limited. He stated that EQAC recommends that the City require the applicant to develop a model, which will allow the public to understand the cumulative impacts as well as the impacts to the particular viewscape. Mr. Hawkins stated that EQAC is focused on the limitation of public access due to a guard -gated entrance. He stated that EQAC is recommending that the City require an increased directional signage program and day use parking. Mr. Hawkins stated that the EIR recognizes that the project has the potential to affect water quality in the area. The EIR concludes that the proposed mitigation will reduce such impacts below the threshold of significance. Mr. Hawkins stated that EQAC is recommending that the City require further study with respect to storm modeling and the impacts of the current mitigation proposals. Additionally, he stated that EQAC is recommending that the City conduct an investigation regarding the possibility and feasibility of diverting all of the runoff from the project into a separate holding system that could be reclaimed and used on the project. Mr. Hawkins stated that the City of San Clemente has a similar requirement. Mr. Hawkins stated that with respect to noise and lighting, EQAC is recommending that the City require a detailed proposal with respect to both noise and lighting. Council Member Glover asked if the City had looked into the reclamation of water. Mr. Hawkins stated that EQAC did not have the funds to do so, but that Elaine Linhoff was the liaison with San Clemente. Assistant City Manager Wood stated that there was not specific investigation into the San Clemente model, but that the City's environmental consultant did provide responses to EQAC's comments. Council Member Glover suggested that the City look at what is happening in other cities. Mr. Eaton stated that EQAC paid particular attention to traffic. He stated that traffic is looked at in two ways. He stated that the traffic phasing ordinance (TPO) provides a short -term analysis, while a long -range model would result from the City hiring a consultant. He stated that each has its limitations and problems. He stated that the TPO already assigned traffic to the family inn project and based the number upon occupancy per room plus the use of the other facilities. He stated that EQAC felt that this was an artificially high number and allows others to make the claim that the proposed Dunes project would reduce the number of trips. Mr. Eaton stated that a problem with a long -range model is that it uses a regional total and reallocates traffic depending upon where new projects are proposed to be added to the regional model while subtracting the traffic from other areas in the region, assuming that the regional total is the same. He explained that a destination resort doesn't really fit the assumption because it attracts people Volume 53 - Page 466 City of Newport Beach City Council Minutes June 27, 2000 INDEX from outside the region, so is really cumulative to the traffic that is otherwise in the region. Mr. Eaton stated that hotels generate their traffic off -peak, but streets are designed to handle the peak traffic. He stated that the catering events pose another traffic impact of their own since most people would be arriving and departing at the same time for an event. He stated that EQAC has asked that the traffic study look at whether or not the left turn capacity on Coast Highway is adequate to handle the catering - induced traffic. Mr. Eaton stated that the second issue he would be discussing is the parking issue. He stated that the EIR assumed full occupancy and relatively heavy catering use and determined that there was not sufficient parking in front of the hotel or in the surface parking next to the hotel, but that there was sufficient parking if the remainder of the property were used. He stated that this means that people entering at the Bayside Drive entrance would need to be directed to the other side of the lagoon and a shuttle system would need to be provided. He stated that this has been provided as a plan to be developed. Mr. Eaton suggested that a potential significant impact should not be delayed, but addressed in the EIR. Ayres Boyd, Special Committee of Associations (SCA), stated that the SCA is comprised of nine associations that surround the Dunes property, covering approximately 5000 homes, and including Linda Isle, Balboa Island, Bayshores, Castaways, Cliff Haven, Mariners, Beacon Bay, Promontory Bay and Dover Shores. Using a slide presentation to illustrate his comments, Mr. Boyd stated that SCA is a single -focus group and is not opposed to the Dunes project nor is it an anti - growth group. He stated that SCA is actually pro - growth because they realize the City needs to regenerate and renew itself. He stated that SCA is not a member of any other association and feels that they represent a middle ground for the City, the homeowners and the applicant. He stated that they are looking for a world class resort of reasonable size. Mr. Boyd stated that the neighbors first began talking about the project in the Fall of 1999 and then informally got together to discuss what would be acceptable to surrounding homeowners. They identified concerns and proposed solutions. Mr. Boyd stated that they issued a position paper that was adopted by the board of directors, or the equivalent, of each of the associations. He stated that they then met individually with each of the City Council members and the applicant. Mr. Boyd stated that SCA feels that the settlement agreement is being abused and its maximum limits have become the minimum limits for the proposed project. He stated that the residential entitlements predate any kind of Dunes agreement, whether it be the settlement agreement or the development agreement. Mr. Boyd stated that another issue of the SCA is traffic congestion at Coast Highway and Bayside Drive. He added that noise and light on the bay are already an issue with no way to enforce violations. Mr. Boyd stated that the settlement agreement was very clear and specific, and was binding on all City Councils and boards, and the City, the County and the applicant agreed to it. Mr. Boyd stated that the project is actually Volume 53 - Page 467 City of Newport Beach City Council Minutes June 27, 2000 INDEX much larger than the settlement agreement. He stated that room count and bedroom count are different, and referred to the timeshares which each have two bedrooms. Mr. Boyd illustrated the difference in building height, bedroom count, square footage and convention center size from the applicant's original request to what was approved by the Planning Commission and what was allowed by the settlement agreement. Mr. Boyd asked what has changed in Newport Beach to warrant such excessive increases in size and mass. Mr. Boyd stated that SCA's proposal recommends that the location of the entrance be moved to Jamboree or Promontory Point. He stated that SCA is also recommending that the number of bedrooms be reduced to 330, the height be reduced to fifty feet and the convention and prefunction space be reduced to 25,000 square feet. Mr. Boyd stated that SCA is recommending that the project have fewer rooms while having a higher room rate, so that the TOT figures estimated stay the same. Lastly, Mr. Boyd stated that SCA is recommending that the noise, light and glare need to be confined within the property boundary. Mr. Boyd stated that all projects have risks and rewards. He stated that SCA is trying to help the developer create a project that everyone can agree upon. He stated that the obstacles include a CEQA lawsuit by Dover Shores, a referendum, the Coastal Commission and the Greenlight initiative. He suggested that if the City Council can approve a project that SCA supports, the obstacles can be more easily overcome. Mr. Boyd concluded his presentation by stating that SCA has worked hard and with the system. He stated that they support the project, but not the current proposal. He stated that SCA is recommending that the City Council direct the applicant to work with SCA and make applicable changes. He stated that this will truly show how everyone has worked together towards a better project. Bert Ohlig stated that he would be providing supporting data for SCA's proposal. He stated that the data provided so far has been from a single source and he wanted to offer a balance. He stated that he is concerned about the size of the project, the nature of such a project in a residential area and the criteria used by the Planning Commission. Mr. Ohlig stated that he brought his concerns to the Planning Commission, but he did not receive a positive response nor did staff follow up on his concerns. Using a slide presentation to illustrate his points, he stated that the balloon demonstration confirmed that his image was accurate. Mr. Ohlig stated that the Planning Commission felt that the project was close to the settlement agreement. Mr. Ohlig stated that the settlement agreement was designed in a way to be compatible with, and show respect for, the community. He felt that the Planning Commission used the settlement agreement to build a project, but the community can't use it for the constraints it includes that show respect for the community. Mr. Ohlig stated that the Planning Commission presented thirteen criteria and he broke these into three categories, which include size issues, oversight issues and improved public access. He stated that the proposed project is Volume 53 - Page 468 City of Newport Beach City Council Minutes June 27, 2000 INDEX approximately three times the size of the previous project. He stated that the expansion is a result of changes to the marina, the hotel rooms, the convention center, the parking structure and the timeshares. Mr. Ohlig stated that he calculated that the number of people on site would be 950, if the property were developed into a family inn. He further calculated that the number of people on site would be 2740 if the property were developed into a resort and convention center. Mr. Ohlig stated that these numbers do not include staff or catering events, which could cause the potential legal occupancy of the site to be five times higher if it were developed as a resort and convention center. He stated that using these calculations, it is difficult to understand how the Dunes traffic engineer could calculate that traffic projections are 10% lower for a resort and convention center than a family inn. He added that the Dunes traffic engineer has also estimated that, over the long -term, the development of the hotel would improve traffic at 36 major intersections. Mr. Ohlig stated that the traffic study was also done based on the theoretical project. He stated that if the traffic study were done based on today's conditions, not a theoretical project, it would have provided information on the real impact to the community. Mr. Ohlig provided a picture of traffic on Coast Highway and stated that it is the sole route through Newport Beach and traffic will only get worse. Mr. Ohlig stated that the settlement agreement had some restrictions placed on noise such as outdoor - amplified music. He stated that the City code has a restriction on average sound, but allows for the peak sound to be twenty decibels higher, which he stated can be a serious problem at night. He stated that there is already quite a bit of noise on the bay and the echo is a problem. He stated that there are also numerous sources of noise associated with the proposed development. Mr. Ohlig stated his disappointment that the views that were presented were not from typical locations where people would be. He stated that a view from 86 feet in the air is not a viewpoint that many people would have. He stated that the balloon demonstration did show that the parking structure will obscure the site from Coast Highway. Regarding height, Mr. Ohlig stated that the settlement agreement allowed for 35 feet with a provision for 38.5 feet. He stated that it is being said that only 17% of the proposed development will be four stories. He stated, however, that it's 50% of the main building and the mass is there. He stated that the convention center is a 500% to 1000% increase over the settlement agreement. Mr. Ohlig stated that the proposed development keeps the bike path that was a part of the settlement agreement, but it also removes RV's, adds a 24- hour service road, adds timeshares in the parking lot and that the beach facility becomes overflow parking. He stated that the land is precious, was deeded to the Girl Scouts and is zoned as recreational/open space. He stated that the City has very little park space and shouldn't let such a large percentage of land be overdeveloped. Volume 53 - Page 469 City of Newport Beach City Council Minutes June 27, 2000 INDEX Mr. Ohlig stated that it has been said that if the project is not three times the original size that the City won't have control over it. He stated that SCA feels that there is disagreement as to if this is an entitlement since zoning would have to be changed for any project, and environmental requirements and design constraints would have to be met. Mr. Ohlig stated that the public is being threatened with a three -story "Motel 6- type" project, which doesn't make sense. Mr. Ohlig stated it has also been said that the location and site design are some of the reasons why the project had to be expanded. He stated, however, that the developer has said that there was no other feasible location and the footprint already goes from the seawall to the back fence. Regarding the financial benefit, Mr. Ohlig stated that 1% of the City budget is equivalent to less that two cents per person per day. He stated that this is in comparison with the original project, which was expected to break -even in four years while the proposed project is expected to break -even in three years. Mr. Ohlig stated that a bigger benefit is that the developer is selling $75 million in timeshares on public recreational land. Mr. Ohlig stated that, in summary, the proposed project is three times larger than that allowed by the settlement agreement, will generate more traffic, will create more noise and will impact views. He stated that it is too large for the site, it is an incompatible commercial use in a residential district and requires sale of public land to pay for the project. Mr. Ohlig stated that he is not opposed to development, but is just looking for a sense of proportion. Anders Folkedal, 319 Morning Star, Vice President of Dover Shores Association, stated that he was responsible for getting the communities together and that he would discuss the issues the SCA has with the timeshares. He stated that 1500 square foot timeshares are the size of many houses and three times as large as hotel rooms. He stated that two - bedroom timeshares are going to have a very high occupancy rate. He stated that timeshares are the likely site for recreational parties. Mr. Folkedal stated that he measured sound from a party at the marina clubhouse on his patio the previous night. He stated that the meter measured 58 to 62 decibels and that City code only allows for 50 decibels. He stated that the noise was from indoor amplified sound, but the doors to the clubhouse were open. Mr. Folkedal stated that when he purchased his property four years ago, he looked closely at the possible uses for the vacant land near his property. He stated that he found through the zoning ordinance and the settlement agreement that he was sufficiently protected. He stated that many responsible people signed the settlement agreement and he doesn't see what has warranted a change. Mr. Folkedal stated that SCA represents $3 billion worth of residential homes surrounding the proposed development. He stated that SCA feels that the residential entitlements predate any agreements with the Dunes. He stated that the City is selling $75 million worth of access to public lands. Mayor Noyes recessed the meeting at 9:40 p.m. and reconvened the Volume 53 - Page 470 City of Newport Beach City Council Minutes June 27, 2000 INDEX meeting at 10:00 p.m. with all members, except Council Member Ridgeway, present. Allan Beek, 2007 Highland, read from a statement written by Susan Skinner - Caustin. The statement requested that the City Council honor the settlement agreement. It stated that the settlement agreement allows the Evans family to develop a reasonably sized project and protects the quality of life for Newport Beach residents. Secondly, the statement asked that the City Council use common sense when evaluating the project and not rely on poor quality information. Jeff Carsten, resident of Dover Shores, stated that he has never been contacted by the SCA. Mr. Carsten stated his support for the proposed project and provided a list of people in his area that also support the project. He stated that he personally knows that the Evans properties are of the highest quality. Ralph Rodheim, 311 Onyx, stated that he is in favor of the project and provided a list of Balboa Island residents who are also in support of the project. He thanked the City Council for their earlier decision to keep some open space in the City and feels that there needs to be a balance between open space and quality projects. He stated that the Planning Commission did a tremendous job in scaling the project down and taking in all of the considerations. Melanie Salata Fitch cautioned the people who say they represent an association as a whole. She stated that she has spoken with people in the SCA boundaries and the feelings are mixed regarding the proposed project. She stated that the Quinn family will do what's right for Newport Beach, that they've researched what is needed and desired, that they won't want to disturb the users of the RV park, that they have proven themselves and have been responsive to concerns. She stated that she'd like to see the community support the project. Charles Rollins, 4808 River Avenue, stated that the City is fortunate to be in a booming economy and have the Evans family willing to invest in such an expensive project. He stated that the Evans family is not a shortsighted developer, they have encouraged public input and have reached meaningful compromises. He added that a development will be put on the site, regardless of the proposed project being approved. He stated that the Evans family can be trusted to provide a true beachfront resort and have attempted to present accurate projections, not unfounded speculation. Tom Wall stated his support for the Dunes project. He stated that the vision for the City must be considered when looking at the types of projects that are approved through the public planning process. He stated that the Evans family has proven that they know how to run a world class resort complex and the proposed project will support the City's needs in some ways. He stated that the Evans family has demonstrated their willingness to support the vision of Newport Beach. He encouraged the City Council to move forward with the project because it will make an important contribution to the business and residential communities. Volume 53 - Page 471 City of Newport Beach City Council Minutes June 27, 2000 INDEX Betty Porter stated her support for the Dunes project. She understands why people are fearful of change and new development, and cited an example of a time she moved for such a reason. She stated that she has researched the Evans family and knows how their hotels are run. She stated that she has never heard from the people who may have conducted surveys for the SCA or the Dover Shores association. She stated that the project is more attractive than the original plan and than the current use of the property. She stated that she trusts the Evans family and she asked for the City Council to support the project. Pat Greenbaum, 300 E. Coast Highway, stated that the issue is not about the quality of the hotel, the furniture or the Evans family. She stated that the issue is about the location and the planning of a huge project in the center of several residential communities. She stated that she has worked with a group that has studied the project since July of 1998, delivered timely information to the Planning Department, attended EQAC and Planning Commission meetings, encouraged others to participate in the process, hosted forums and kept Bayside Village informed. She invited the City Council members to tour Bayside Village and observe how the project will directly affect Mayflower, Liberty and Tremont. Hal Meany, 601 Carnation Avenue, urged the City Council to vote against the project as proposed. He stated that if all of the residents in the area were allowed to vote on the project, he feels that they would be against a project of the size proposed. He stated that the Planning Commission missed the point and got fooled by the requests of the applicant. He stated that major increases over the settlement agreement are being proposed and none should be agreed to. He stated that there are numerous specific indications that the project should not be approved. He read from the staff report which mentioned the traffic, air quality and visual impacts. He stated that he is convinced the project will be first class, but he stated that it needs to be smaller. Maryam Shokrai, 908 Chestnut Place, stated that she is a resident and business owner in Newport Beach and a mother. She stated that what happens in Newport Beach is very important to her and that she is in support of the Dunes project. She stated that she has been impressed with the entire process that the project has undergone. She stated that the Newport Dunes and the Evans family have always been generous. She emphasized that all projects should be considered on their own merits. She stated that the Planning Commission unanimously approved the project and she urged the City Council to do the same. Barbara Sloate stated that she is a resident of Newport Beach and the owner of an event and meeting planning company. She stated that she knows that the City needs an additional venue and additional conference space. She stated that the addition of a destination resort and conference center will be a major benefit to the City and will help attract high quality professional meetings in the area. She stated that it will generate new revenue for the City as well as an additional $25 million each year to the ancillary businesses, shops, resiaurants, theatres and hotels. She stated that the Volume 53 - Page 472 City of Newport Beach City Council Minutes June 27, 2000 INDEX proposed project will be an economic and social asset to the City, and she looks forward to having another quality venue. Tom Hyans, peninsula resident, stated that he has attended all of the Planning Commission public hearings. He provided some history on the settlement agreement and stated that the Planning Commission has approved a project that exceeds those in the agreement. He stated that the Planning Commission also avoided asking for a realistic visual display of the scale of the project. He suggested that the City Council request a scale model of the buildings set within a two - dimensional representation of the surrounding elevations. He stated that the public will not always support the City Council bartering away quality of life or the natural open amenities enjoyed, to realize a nebulous gain in revenue. He stated that Planning Commissioner Selich has stated that he doesn't feel that every detail of the settlement agreement is sacred. Mr. Hyans asked the City Council to consider what is sacred to them and remember that the City already has an agreement. Baron Bernard, 1705 Sherington Place, stated that he is a member of the hotel family and is friends with the Evans family. He said the Evans family are some of the finest hoteliers in California, if not the Western United States. He stated that their vision for the proposed hotel will set a new standard for Newport Beach, as is automatic by their selection of WATG as the architects. He stated his support for the project and complimented Mr. Gleason on articulating the details of the project. Joyce Lawhorn, 300 E. Coast Highway, stated that she has a problem with the size of the proposed hotel and the impacts to the immediate area. She stated that she lives on Mayflower and their fences are the western boundary line of the project. She stated that in the late 1980's, the area went through the pains of the last expansion of the Dunes while also enduring a widening of Coast Highway that took place at the same time. She stated that currently behind her property is a bike trail and an RV park. She stated that the proposed project will replace it with a parking structure, loading docks, a public entrance, mechanical equipment, an employee parking lot and a service road. She stated that it is too much change for the nearby residents to endure. She objected that the parking structure, the function areas and loading docks were not included in the total 581,000 - square foot figure. She stated that the staff report recognizes the impacts to the residents on Mayflower, and stated that they are already impacted by Coast Highway and the John Wayne Airport. She stated that the project should not be approved. Bob Caustin, Defend the Bay, stated that 300 parking spaces will be eliminated to allow for employee parking. He stated that the developer wants to put their water in the main channel, away from their lagoon. He stated that the footprint will be incredibly different than the settlement agreement. He stated that the traffic model must obviously be flawed when it concludes that traffic at intersections will actually be improved. Mr. Caustin referred to a handout illustrating observations of the Catamaran Resort Hotel. He stated that neighbors are unhappy with the Catamaran Resort Hotel in their neighborhood, the noise impacts and the Volume 53 - Page 473 City of Newport Beach City Council Minutes June 27, 2000 INDEX public drunkenness that has been observed. He requested that the City Council not allow the Dunes project to be built. Peggy Fort, 416 Via Lido Nord, stated her support for the Newport Dunes Resort project. She stated that the resort will generate millions of dollars of revenue in TOT and sales tax. She stated that this revenue far outweighs any negative implications. She stated that the timeshare and hotel guests will also support other businesses in the community. She stated that she is also looking forward to having another resort where her friends and family can stay when visiting. Jack Linscott, 300 E. Coast Highway, stated that he is a resident of Bayside Village and supports the proposed project. He stated that people in Bayside Village are already improving their own properties and the sale of properties has gone up. He stated that it's a benefit to all of Newport Beach that the Evans family is planning to build a class hotel in the City. He stated that the Evans family is on site at the Dunes, are owner /operators and have high security. Joe Parker, incoming Chairman of the Board of the Newport Harbor Area Chamber of Commerce, stated that the Board voted in support of the Dunes project. He stated that as a Certified Public Accountant (CPA), he understands the Administrative Services Director's recent study indicating that the City needs additional revenues. Additionally, he stated that the Economic Development Committee (EDC) report in March of 2000 affirmed the same findings and that additional revenue sources should be sought. Mr. Parker stated that the proposed project is an excellent additional revenue source and he urged the City Council's support. Rush Hill stated that he is an architect, property owner and resident, and helped to create the EDC. He stated that the City has known for years that it needs this type of project. He stated that when a property site was being looked for, the Dunes site was chosen as the only appropriate site for this type of facility. He stated that a vocal minority have been saying that government doesn't work, and he stated that what he thinks they are really saying is that they have not been pleased with the results of due process. Mr. Hill stated that due process is working well and that the Planning Commission has done an amazing job. He stated that he is a resident of the Cliff Haven area and has never heard of SCA. He presented a list of residents from the Cliff Haven area who state the same thing. He asked the City Council for their support of the Dunes project. Betty Padden, 213 E. Bay Front, stated that she has never heard from the Fire Department and what their feelings are about the project. She stated that the entrance driveways as presented by Mr. Gleason look like they may not be big enough to accommodate fire trucks. Nancy Skinner, 1724 Highland Drive, stated that she wanted to talk about commitment. She stated that there should be a commitment to the citizens of Newport Beach in regards to the settlement agreement. She asked that the City Council deny the proposed project. She stated that the Evans family could be trusted to build something within the settlement agreement. Volume 53 - Page 474 City of Newport Beach City Council Minutes June 27, 2000 INDEX She stated that no one is asking to take away the rights of the Evans family, but to respect the rights of the public. She stated Planning Commissioner Selich stated that he could only support a project that exceeded the settlement agreement if it were far superior. She stated that she has talked to many people who don't think that such a large project should be put in such a traffic sensitive area. Michele Yahn stated that she is a Newport Beach resident and has been involved in community projects, charity programs and organizations. She stated that these groups make major contributions to the quality of life in Newport Beach. She stated that more could be done if there were a hotel, conference center and a meeting place like the Dunes is proposing. She stated that it is frustrating to go outside the community to have major charity dinners and fundraising events. She stated that the current hotels do not have appropriate meeting space. She urged the City Council to approve the proposed project. Council Member Debay read from a letter dated June 12, 2000, from the CVB asking for the City Council's support of the Newport Dunes Resort project. The statement read that the decision would be a prudent one for the future financial wellbeing of the City and would serve to support other hospitality interests. The statement read that the support would allow residences and businesses to continue to enjoy the services and lifestyle they have come to expect. Council Member Debay announced that the letter was signed by Rosalind Williams, President and CEO of the Newport Beach Conference and Visitors Bureau. Lynn Cathcart stated that everyone has their own opinion and indicated her dislike for the current traffic in the City. She stated that she does not want the project to be decided by the elegance of a presentation or the quality of a photograph. She stated that if the actual facts are correct, the research is complete and it is proven that the project needs to be increased to the size proposed, only then could she be in support of it. Jan Vandersloot, resident of Newport Heights, requested that the City Council not violate the settlement agreement. He stated that the terms of the settlement agreement bind future boards and City Councils and that the City Council should be bound by the agreements of their predecessors. He stated that the size of the project should be reduced. He stated that the Treasure Island project is 275 rooms and could be a model for Newport Beach. He stated that water quality was an integral part of the approval of the Treasure Island project. He stated that the water should be treated and used on the site for the Dunes project. He stated that the height of the project should also be reduced, and that the applicant and the City are going way beyond the settlement agreement, which is a breach of faith. He asked for integrity on the part of Ms. Evans and the City Council. Council Member Glover stated that she has observed an increase in the number of restaurants at Fashion Island. She stated that the reason that they have reduced their retail space and increased their restaurants is because shopping centers have changed and have become entertainment centers. She stated that their marketing needs may change again. Council Volume 53 - Page 475 City of Newport Beach City Council Minutes June 27, 2000 INDEX Member Glover stated that the same is true of timeshares. She stated more hotel chains are including timeshares in their projects. Bob Balen, 265 Mayflower Street, stated that the great majority of the Bayside residents, 275 so far, have signed petitions opposing the proposed Dunes project. He stated that they feel that there would be irreparable harm to the environment and loss of property values. He stated that the greatest detriment to the residents on Mayflower is the parking structure planned for behind their houses. He stated that it would wipe out their views of Fashion Island and Saddleback completely. He stated that it is inconceivable that the City would condone such an imposition to the residents. Dan Purcell stated his support for the project. He stated that the City is in good shape, economically, and the project will help to make sure it continues even when times are bad. He stated that the project will provide vitality for the community. Sharon Antle stated that the project would not visually impact her, but she would feel the impact of traffic and noise. She stated that most people in opposition to the project don't really oppose a project, they just oppose a project of the size being proposed. She stated that the emotional well being of the public as well as the financial well being of the City, should be considered. She stated that the City is one of the wealthiest in the country. She suggested that the Windows on the Bay site be considered for a convention center. Jim deBoom, Executive Vice President of the Orange County Coast Association (OCCA), stated that OCCA voted on and unanimously supported the proposed project. He stated that other cities would like to have such a project. He stated that the City Council's favorable rating is still high in Newport Beach. He stated that people still support the City Council and the government process. He stated that there are detractors, but he encouraged the City Council to finish the process. He provided a list of residents in the Mariners and West Cliff area who support the proposed project and have not been contacted by SCA. Tyler Jordan, California Voters, stated that the project has merit and was nicely presented. He stated that any project has a plus side and a down side. He stated that the project will have enough impact that it deserves the right of the voters to have a vote on it. He stated that it is his job to preserve the right of the voters, to help people register to vote and to get such projects to the ballot. He cited an example of a project in Huntington Beach that went to vote. He stated that it did not pass. Council Member O'Neil stated that it might be appropriate to let the applicant rebut comments made at the current meeting. Mr. Gleason stated that he has a number of issues to respond to and would go through a few of them, take questions and also respond to the City Council in writing. He stated that the visual simulation and the balloon experiment were done instead of a physical model of the project, because he Volume 53 - Page 476 City of Newport Beach City Council Minutes June 27, 2000 INDEX doesn't feel that a physical model will do what people want it to do. He stated that because of the size of the project area, it would be difficult to show the surrounding area in context. He stated that another reason a physical model was difficult was because the project was changing so rapidly during the Planning Commission process. Mr. Gleason pointed out that there was one correction made to the visual simulation. He stated that two timeshare units were erroneously marked as three - stories when in fact they are proposed to be four stories. He stated that he would provide the balance of his comments in writing. Council Member O'Neil stated that he did not expect that the City Council would be making its decision at the current meeting and that there would be an opportunity for the applicant to submit his responses in writing. He stated that he did not attend any of the previous meetings discussing the matter but that he will assume that during the two -year public hearing process, all issues have been raised and responded to. He stated that he is interested in the facts and that the decision of the City Council must be based on the evidence and the facts. He stated that the presentations were well done at the current meeting and he felt sincerity from presenters on both sides of the issue. Council Member O'Neil stated that the decision - makers must now deliberate and make a decision. He stated that it will be difficult to get past the emotions, when making the decision. Council Member Debay requested that the applicant and staff respond to the comments made regarding the left turn capacity on Coast Highway, the extent to which the City Council is bound by the decisions made by previous City Councils, the market studies done by the applicant, clarification of the City's control over a project built within the terms of the settlement agreement, if public access is limited by the guard -gated entrance and more information about other projects that have used onsite holding systems for water runoff diversion. Mayor Pro Tem Adams stated that he would not be in attendance at the City Council meeting of July 11, 2000. He stated that the project is attractive when compared to the entitlement associated with the development agreement in that it provides secondary access off of Back Bay Drive. He stated that employees and service deliveries generate a significant amount of the traffic associated with hotels of this type. Mayor Pro Tem Adams stated, however, that using the existing roads in the RV park is wholly inappropriate. He can't understand how delivery trucks could be accepted by families staying at the RV park. He stated that the issue has to be addressed and is the weakest link in the project proposal. Mayor Pro Tem Adams suggested that it might be helpful if the people who are opposed to a 470 -room hotel, but feel that a 275 -room hotel is okay, explain how they've come to that conclusion. He stated that this could be done at the next meeting discussing the proposed project. He added that their conclusions may be valid, but he didn't know what would give them that impression. Mayor Pro Tem Adams cited the Marriott Hotel with 570 rooms and stated that he has never heard any complaints regarding the traffic it generates. He stated that the Marriott Hotel also has 24,000 square feet of meeting space. He stated that he has never noticed significant traffic Volume 53 - Page 477 City of Newport Beach City Council Minutes June 27, 2000 WR. at the hotel. He stated that the Marriott Hotel, as far as traffic generated, is relatively comparable to the proposed project. He suggested that others visit the Marriott Hotel and make their own observations. He also cited the Four Seasons and the Hyatt Newporter as examples of hotels that are similar and don't have the traffic problems many expect from the new development. Mayor Pro Tem Adams concluded his comments by stating that he hopes that the applicant can work out the issues he mentioned earlier in regards to the secondary access. Council Member Glover stated that when running for public office, she promised that when she left the City Council, she would leave the City in better financial position than when she came in. She stated that she has been reviewing her votes since being on the City Council regarding developments. She stated that she has been looking in terms of revenue and doesn't vote for a project solely because of the revenue generated. She stated that she knows that a developer will always say that their project will generate more revenue than it will in reality. Council Member Glover clarified a comment made earlier in the evening and stated that the City is not as wealthy as the residents are. She offered to go over the budget with anyone that would desire her to do so. She stated that the public needs to understand the City has many reserve accounts that are down and where new money is coming from. She stated that the City Council does not vote in favor of projects solely because they will bring revenue into the City, but the City Council does have to pay the City's bills. She concluded by stating that the City is conservative and prudent in how it spends its money. Council Member Thomson expressed how impressed he was with the quality of the testimony by nearly everyone at the current meeting, those on both sides of the issue and his colleagues. He stated that there are entitlements on the property, that something will be built and it is the responsibility of the City Council to make sure that it's the best project possible. Council Member Thomson stated that there is the opportunity for a great project at the site, as long as it doesn't harm the bay or have other problems. He stated his appreciation for the process at the current meeting. Council Member Debay stated that it is proposed that the new hotel have 470 rooms but with 150 RV's being eliminated, it means that there will only be a net increase of 45 dwelling rooms from the settlement agreement. Mayor Pro Tern Adams asked how the County figures into the amendment, since they were a part of the original settlement agreement. City Attorney Burnham stated that the development agreement is between the City and the Dunes, and would supercede the settlement agreement at the expiration of the statute of limitations for legal and electoral challenges. Mayor Pro Tem. Adams clarified his question by stating that the County was a signer on the settlement agreement. City Attorney Burnham stated that they were not being cut out of the process, but the vehicle that's been chosen to affect the development for the new project is between the City and the Dunes. He added that the County will probably have to approve a revised lease for the property. Mayor Pro Tem Adams stated that the County may be counting on some of the elements of the current entitlement. City Attorney Burnham Volume 53 - Page 478 City of Newport Beach City Council Minutes June 27, 2000 INDEX stated that he did not know about the lease between the Dunes and the County, but he guessed that the County, as the landowner, has the ability to control the use of the property through the amendment to the lease that will be necessary. City Attorney Burnham added that the development agreement could be structured to require the approval of the County, as well as the City and the Dunes. Mayor Pro Tem Adams stated that he felt that would be appropriate. Mayor Pro Tem Adams asked for an explanation of the deed to the Girl Scouts, that was mentioned by the SCA. City Attorney Burnham stated that there was no deed conveying fee title of the property to the Girl Scouts. Mr. Gleason confirmed that he is also unaware of anything that the SCA statement might have been referring to. He did state, however, that there is storage on site for the Girl Scouts' sailboats. He stated that the existing uses would remain on site, although they might be relocated to the eastside of the lagoon. Mayor Pro Tem Adams asked about the tents on the beach, as depicted in one of the photographs shown earlier in the meeting. He asked if overnight camping is allowed on the site and, specifically asked, if there would be any change to the allowed use to the sand itself in front of the hotel. Mr. Gleason stated that the only overnight camping allowed in the area is for organized charitable and civic organizations. He stated that the only other sand activity is the use of an outdoor- catered pavilion, which will be removed to leave the beach area for beach use. Mayor Noyes thanked staff, the applicant, EQAC, SCA and the citizens for doing their research and providing their input on the project. He stated that the City Council has to be exactly right with their decision. He referred to the City Council's action on Item No. 27 earlier in the evening and stated that there are dynamics that take place in the open debate process. He stated that the proposed Dunes project is large, highly visible and located in an environmentally sensitive area in the center of the City on public land. Mayor Noyes stated that the process will best be served by having all of the City Council members in attendance while debating and voting on the project. Mayor Noyes outlined the absences of City Council members. Motion by Mayor Noyes to continue the hearing to the City Council meeting of September 12, 2000. Mayor Noyes stated that this will allow staff and the applicant time to address the issues that were brought up at the current meeting. He stated that this will also accommodate a more effective and continuous debate. Mr. Gleason stated that for obvious reasons, the Dunes would be against further delay in the process. He stated that they began the process with the City approximately four years ago. He stated that the process with the Planning Commission was longer than expected, but was also very productive. He added that another two -month delay was taken before the item reached the City Council due to other items pending before the City. He understood the reasons for Mayor Noyes' motion, but asked that the process continue. Volume 53 - Page 479 City of Newport Beach City Council Minutes June 27, 2000 INDEX Council Member O'Neil agreed that it isn't appropriate to have City Council members missing some of the evidence and testimony, but he added that policies and procedures are in place to allow City Council members to remain qualified to vote on the matters. He stated that his main concern is that there is so much at play in the City currently. He referred to the initiative that will be before the voters in November, the work to understand the ramifications if the initiative passes, another initiative that is at the County to check if there is a sufficient number of qualified signatures to get it on the ballot, litigation regarding Measure F, an upcoming municipal election with three Council seats on the ballot and annexation issues with Newport Coast. He stated that the Dunes has followed the rules, devoted their time and energy on presenting the project and answered all of the questions asked of them. Council Member O'Neil stated that it will be difficult for him to not support the project when he looks at the type of process the applicant has gone through, the public hearings, the consultants hired by both the applicant and the City and the respect he has for the Planning Commission. He concluded, however, that with all that is occurring at this one time in the City, he will be inclined to support the motion. He stated that this will be in the best interest of everyone, including the applicant, and will allow for more responsible deliberation. Mayor Pro Tem Adams stated that he would not be supporting the motion. He stated that the City Council should move on with this, that he understood Council Member O'Neil's points but that he did not feel that it was fair to anyone to put it off and he could see no advantage to doing so. Mayor Noyes stated that he'd rather err on the side of over deliberation. He stated that the City Council will not be able to look at this again and that he wants to proceed with caution. He sympathized with the applicant but felt that they deserved all seven City Council members voting on the project. Council Member Debay stated that she'd like to get the answers to their questions much earlier than September 12, 2000. She asked if the item could be agendized to get the answers beforehand. Mr. Gleason stated that the Dunes will provide written responses to all questions raised at the current meeting in time to make the next agenda packet. He further asked if the City Council would consider a special meeting. Mayor Noyes stated that the continuation will give staff the time to go through the minutes of the meeting and get answers to all questions. He added that the City Manager should be able to provide for a clean agenda when the matter is before the City Council in September. Council Member Debay again asked if the item could be agendized for the next meeting to get answers to the questions asked. Mayor Noyes stated that the item and answers wouldn't be before the City Council until September, but that she could get her answers from staff beforehand. The motion carried by the following roll call vote: Volume 53 - Page 480 City of Newport Beach City Council Minutes June 27, 2000 Ayes: Thomson, Glover, Debay, O'Neil, Mayor Noyes Noes: Adams Abstain: None Absent: Ridgeway MOTION FOR RECONSIDERATION - None. ADJOURNMENT - at 12:08 a.m. on June 28, 2000, in memory of Newport Beach Conference and Visitors Bureau President Rosalind Williams and Comcast Cameraman Paul Froehlich. The agenda for the Regular Meeting was posted on June 21, 2000, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. The supplemental agenda for the Regular Meeting was posted on June 23, 2000, at 2:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 53 - Page 481 INDEX