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HomeMy WebLinkAbout01 - 08-22-2000September 12, 2000 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes DRAFT Study Session August 22, 2000 - 5:00 p.m. INDEX Present: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil (arrived at 5:40 p.m.), Mayor Noyes Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR - None. 2. AIRPORT AREA PLANNING STUDY; STUDY AND FUNDING OPTIONS. City Attorney Burnham stated that the staff report discusses the type of vehicle Council may use to evaluate potential land use and infrastructure changes in the airport area. He indicated that the Planning Director, Assistant City Manager, and he recommends that Council first conduct a planning study to evaluate various scenarios and alternatives relative to land use and circulation. Following this, Council will be in a position of developing a preferred project and alternatives to prepare a specific plan or planned community development plan, and the required environmental documentation. He reported that a preferred project and alternative will also come out of public participation that will take place with the Planning Commission and the Environmental Qualities Affairs Committee. In response to Mayor Pro Tern Adams' question, Mr. Burnham reported that any changes to the airport area development entitlement or airport circulation system would require an amendment to the Land Use and Circulation Elements. Mayor Pro Tern Adams stated that the General Plan Update Committee already exists and is charged with addressing the need for a comprehensive General Plan Update or updates to portions of the General Plan. Further, this Committee will also develop a work program for the entire City like the one suggested for the airport area. He asked if the airport area program can be done as part of the Committee's effort rather than doing this separate. Mr. Burnham indicated that Council would also need to consider the impacts of any additional development in the airport area on the entire City. Assistant City Manager Wood added that the choice of whether Council wants to consider the airport area as part of the overall General Plan Update or as a standalone project is a timing issue and depends on how important it is to look at the entire City as a whole. Council Member Ridgeway stated that there is more of an urgency since there are a number of projects that are moving forward and since the City is renegotiating the airport agreement. He indicated that, if the City does a specific area plan or planned community development, the City can institutionalize the 8.4 MAP. He believed that the City has more reason to Volume 53 - Page 553 Airport Area Planning Study (54) City of Newport Beach Study Session Minutes August 22, 2000 INDEX try to move forward on at least the airport area and allow the remainder of the City to follow. Mayor Pro Tem Adams stated that the airport area land use and circulation planning effort can possibly be handled by a subcommittee as long as they keep the General Plan Update Committee apprised of what they are doing. Mayor Noyes indicated that this issue was brought forward because it seems as though there is a lot of development in the airport area and that there is an inequity in fees between the City and Irvine that needs to be resolved. He stated that he would also like to understand the relationship the City has at the John Wayne Airport (JWA). Council Member Debay believed that, as part of the negotiation with Conexant, the City wanted to use the Traffic Phasing Ordinance (TPO) for traffic improvements. She indicated that Conexant was willing to pay their fair share but wanted to make sure that other developments carried part of that fair share. She noted that the City does not have a specific policy as to who would pay for what or how shares are charged. Mr. Burnham stated that in the airport area, just like any part of the City, the fair share ordinance which requires a per trip fee on new development and the TPO which applies to development projects would apply. Ms. Wood confirmed for Council Member Debay that a comprehensive General Plan update would take about two years. City Manager Bludau stated that Council may want to consider beginning the General Plan Update process and making the airport area the first component. He noted that there would be a great demand on staff if both the airport area specific plan and the General Plan process are undertaken at the same time. Mayor Pro Tem Adams wanted to make sure that no one looses sight of the Citywide effort in order to address this one area. He stated that accommodating the need to address this specific area on a fast track may be one thing the Committee needs to work out. Council Member Debay asked if existing staff can handle the airport area if the City contracts out for the General Plan Update. Ms. Wood stated that the Planning Department budgeted for a Senior Planner in this year's budget to work on the airport area, but noted that it would not just be the Senior Planner who would be the everyday project manager. She indicated that she and the Planning Director also get involved in projects of this magnitude. Ms. Wood confirmed for Council Member Glover that the City allocated money to generate an Environmental Impact Report (EIR) for a certain portion of the airport area with matching funds from businesses. Ms. Wood also reported that the plan included conducting a specific plan. She stated that the airport area boundaries have not been identified, but indicated that the campus strip and the Newport Place area have been studied. Mayor Pro Tem Adams added that the annexed area may also be worthy of inclusion. Council Member Glover stated that, when she thinks of the airport area, she thinks about how policies and land use decisions will affect the future of the City's intent with JWA. In response to Council Member Glover's question, Volume 53 - Page 554 City of Newport Beach Study Session Minutes August 22, 2000 INDEX Mr. Burnham believed that there are no other areas in the City that have different fees except at Conexant. Council Member Ridgeway explained that the City is looking at the long term traffic impact since the area is a regional draw. He reported that there is virtually no population in the evening, but in the daytime, there is almost over 100,000 people in that area. Council Member Glover stated that the City looked at the area several years ago and did make decisions regarding EIRs. She emphasized that the City needs to decide the boundaries of the airport area first. Regarding the Preliminary Work Program (Exhibit B), Ms. Wood stated that this is a basic planning process which ended up looking very much like the work program for the Newport Center Comprehensive Plan. She reported that they would look at existing documents [i.e. City documents, special land use restrictions (SLUR) that The Irvine Company placed on many of the properties, and the Airport Land Use Plan] to find out the development limitations; estimate the development potential that is allowed in other highly developed areas of the City; conduct traffic projections from the potential development; look at potential mitigations that would be necessary to handle traffic; conduct feasibility /acceptability studies; prepare the EIR; generate fiscal and economic impact studies; and draft the General Plan Amendment and the Specific Plan. She estimated that this work would take 4 to 6 months. Council Member Ridgeway stated that the City may be doing this because there has been quite a bit of new development in the area; however, unless there is some overriding consideration and/or development agreement, he is unsure if the City should be proceeding since the road system needs to be improved. He indicated that Irvine has a $10 per foot fee in that area in which $5 goes toward traffic and $5 goes to other projects. He stated that the City only focused on traffic and so he is unsure what the fee will be since the City has to prepare a Circulation Element for that area and figure out the capital cost. He expressed the opinion that Irvine probably uses the other $5 for traffic also but believed that the City Manager and Administrative Services Director could find that out. He emphasized that, even though there is that fee, the area still has a system that is under capacity both in Irvine and Newport Beach. Council Member Ridgeway added that there are substantial projects that are moving forward at Campus /Jamboree and MacArthur /Jamboree, and noted that there is also talk about building a major shopping center in Irvine at the freeway and Jamboree. Council Member Glover believed that the City has tried to be fair and equitable to businesses and has applied the TPO to all new developments. She explained that Irvine is overdeveloped because they lost some pages out of a book and ultimately continued to develop. She indicated that it is important that Council look at this area in context with Newport Beach and what the City wants. She added that each district has its traffic problems, noting that hers abuts Pacific Coast Highway and is next door to Downtown Costa Mesa. She stated that Mayor Pro Tem Adams may be right in wanting to look at the City as a whole, including the airport area. Council Member Volume 53 -Page 555 City of Newport Beach Study Session Minutes August 22, 2000 INDEX Ridgeway pointed out that the TPO and Fair Share Fees only analyze the City's traffic and not regional traffic. Public Works Director Webb reported for Council Member Debay that the connection between the 73 and 55 south freeways is estimated to carry 1,100 to 1,200 passengers at peak time. Mayor Pro Tem Adams noted that the connection will not solve anything until the confluence of the 405 freeway is fixed. Council Member Thomson asked if the City would be in better shape if it approached the Irvine and Costa Mesa planners to combine forces and work on this area together. Ms. Wood reported that the City Managers, Planning staff, and Public Works staff from the three cities tried to work together on traffic issues about 15 years ago but quit for lack of progress. Council Member Debay stated that she has been trying to make a point relative to the Greenlight and Traffic Phasing Initiatives that there is no way to control traffic through the City by only changing rules in Newport Beach. Timothy Strader stated that he moved to the City in 1970 and has been involved in planning and development since. He added that he is also a partner in Koll Center Newport #A which is a General Plan Amendment pending before Council for a 250,000 square foot office building in the airport area and is also involved with an office project in Irvine. He stated that he is informed about the airport area and what the various entities require. He distributed an aerial photo and pointed out that the easterly boundary of the City is the area which is surrounded by Campus Drive, Koll Center Newport, and Newport Place; Irvine is to the south; Tustin is to the east; and Costa Mesa and the County are north of the City. He indicated that the 4,000 acre Irvine Business Complex was designated in 1989 and reported that they conducted a study at that time which initiated the $10 per foot fee. Mr. Strader pointed out that Irvine has vacant land that requires facilities to be built; however, the City's airport area is fully developed and indicated that the Conexant project and the project they are proposing are infill projects. He emphasized that the airport area is a regional area and traffic will be generated regardless of what happens in the City. He added that Irvine permits a Level of Service (LOS) E in the Irvine Business Complex, rather than the City's LOS -D. The difference generates about a 10% increase in traffic flow. He suggested that the City consider having a different LOS. Mr. Strader indicated that the market place also affects the planning of the City. He noted that he looked at a 30,000 square foot office building in the airport area and realized that it would cost $4.8 million to purchase the building. If the City decided to double the FAR to 1:1, a 60,000 square foot building could be built on that same one acre property, which equates to $80 per buildable foot. He reported that the present market for the land is about $30 to $35 per buildable foot. He believed that there may be other areas that are more important in the City than to have the City conduct an individual study and allocate $500,000 when it may already be doing a General Plan Update. Volume 53 - Page 556 City of Newport Beach Study Session Minutes August 22, 2000 ON Richard Bluth, Conexant Director of Facilities, 4311 Jamboree Road, stated that they have taken the position to support a study in all the discussions they have had regarding their proposed expansion project; however, they are concerned with fairness in development of that area. He indicated that Conexant would support a fee if it made sense and also applied to everyone who would be developing, redeveloping, or infilling. He encouraged the City to either decide to get to this point or focus elsewhere. He stated that they currently feel stalled in the process and in understanding where the City wants to take the airport area. He indicated that their business will continue to grow and requested clarity on this issue, otherwise, it may drive them outside the City. Barry Eaton, 727 Bellis, stated that he sees the airport area as an opportunity for the City to provide for economic opportunity, job opportunity, and fiscal enhancements without directly affecting its existing residential area, but noted that it is in the center of an urban complex with regional traffic. He expressed the opinion that the area should have an LOS -E like Irvine. He added that, since the area could be considered for special economic intensification, it should also pay its share of the resulting traffic. He expressed the opinion that an equal fee should be applied to all intensification development in that area. Mr. Burnham confirmed for Council Member Debay that facilities that store more equipment and are not being used by people are taken into account when a traffic sharing fee is charged per square foot. He added that the type of land use and the traffic generating characteristics of that use do have a bearing on the fee charged to the development and that the fee has to be in proportion to the trips generated. Mayor Pro Tem Adams believed that the most appropriate thing for Council to do is to convene the General Plan Update Committee as soon as possible to first come up with a plan to address the airport area. Council Member Ridgeway asked if Council wants to look at intensification without a return. Mayor Pro Tem Adams indicated that the City needs to determine the long term vision for the airport area and what needs to be done to get there. He pointed out that the Committee is currently not charged with the General Plan update task, but charged with mapping out how to proceed through that process. He indicated that the Committee may need to generate a special process for the airport area which brings the big decisions to a public forum and to Council. Following that, they will then work out what is needed, what type of infrastructure is needed, and how it will be funded. Regarding the Conexant and Koll projects, Council Member Debay noted that those projects would be voted up or down based on their starting criteria. Mayor Pro Tem Adams stated that those projects would be an intensification of two focused areas and asked about the rest of the airport area. Council Member Ridgeway noted that these two projects have jumped through hoops but are getting there differently, adding that the projects are an intensification but only one of the projects is offering the City substantial benefits and a development agreement. He believed that this may be a policy question. Mayor Pro Tem Adams stated that he is not sure if it is inappropriate that those decisions be made independent of the big picture for Volume 53 - Page 557 City of Newport Beach Study Session Minutes August 22, 2000 the airport area due to timing. Ms. Wood reported for Mayor Noyes that she is only aware of the Conexant and Koll projects in the airport area at this time. Council Member Ridgeway stated that he was approached by two different developers who indicated that they will be bringing projects to the City soon. Mayor Pro Tem Adams noted that the two projects are the projects that have already gone through environmental documentation, etc. and gives decision makers the ability to determine their impacts. Mayor Noyes stated that the General Plan Update Committee seems to be in a more appropriate position to deal with this issue and come back to Council with how to proceed. Council Member Ridgeway assured that the City is looking at fairness and equity; however, the City needs to develop a program, generate the necessary documentation, and move forward. Regarding Mr. Eaton's comments, he indicated that they would probably look at lowering the LOS in the airport area, but this needs to be worked at through the long range planning the City is trying to start. Mayor Pro Tem Adams indicated that the Aviation Committee and the Economic Development Committee still needs to appoint someone to the General Plan Update Committee. He stated that their first charge will probably involve how to deal with the processing of the Conexant and Koll project applications. Mr. Bludau suggested that, when the Committee makes a recommendation to Council, they also bring back the alternatives they reviewed. Mayor Noyes stated that, if a recommendation is not reached, the Committee can come back with a progress report no later than the September 26 Council meeting. PUBLIC COMMENTS - None. ADJOURNMENT - 6:00 p.m. + + + + + + + + + + + + + + + + + + + + + + + + + + + + + ++ The agenda for the Study Session was posted on August 16, 2000, at 4:10 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 558 INDEX CITY OF NEWPORT BEACH City Council Minutes Regular Meeting w �� August 22, 2000 - 7:00 p.m A INDEX — 5:00 p.m [Refer to separate minutes]. — 6:00 p.m CLOSED SESSION REPORT PRESENTED — None. RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Absent: None Pledge of Allegiance — Council Member Glover. Invocation by Pastor Frank Custer, Lighthouse Coastal Community Church. 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 Ridgeway requested that a recommendation from the Affordable Housing Task Force be placed on a future agenda. He added that Assistant City Manager Wood is aware of the matter. • Council Member Ridgeway requested that a Charter amendment be placed on a future agenda that would change the Board of Library Trustees and allow the City Manager to have the authority to discipline, hire and/or fire the City Librarian. CONSENT CALENDAR 1. 0 MINUTES OF THE REGULAR MEETING OF AUGUST 8, 2000. Waive reading of subject minutes, approve as written and order filed. Mayor Pro Tem Adams, and Council Members Thomson and Debay abstained from voting on this item. 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 559 City of Newport Beach City Council Minutes August 22, 2000 INDEX ORDINANCE FOR INTRODUCTION. 3. ORDINANCE AUTHORIZING AN AMENDMENT TO THE Ord 2000 -161C -563 CONTRACT WITH CALPERS. Adopt Urgency Ordinance No. 2000 -16 Public Employees authorizing an amendment to the contract between the City of Newport Retirement System Beach and the Board of Administration of the California Public Employees' (PERS) Retirement System. (38166) RESOLUTION FOR ADOPTION 4. BALBOA YACHT BASIN RENTAL ADJUSTMENTS. Rescind Res 2000 -77 Resolution No. 99 -51 and adopt Resolution No. 2000 -77 adjusting the slip, Balboa Yacht Basin apartment and garage rental rates at the Balboa Yacht Basin. (51) ORDINANCES FOR ADOPTION 5. GPA AND PREZONING OF SANTA ANA HEIGHTS - GENERAL Ord 2000 -14 PLAN AMENDMENT, PREZONING AMENDMENT AND SPHERE OF GPA 99 -3(B) INFLUENCE CHANGE PRIOR TO ANNEXATION OF Amendment 903 APPROXIMATELY 240 ACRES WITHIN THE SANTA ANA HEIGHTS Santa Ana Heights AREA TO THE CITY. Adopt Ordinance No. 2000 -14 approving a zoning Annexation amendment for the prezoning of the Santa Ana Heights area (Zoning (21145) Amendment 903). 6. 1514 WEST BALBOA BOULEVARD (PARKER STANBURY LLP - Ord 2000 -15 APPLICANT) A REQUEST TO AMEND THE GENERAL PLAN LAND GPA 99 -2(C) USE ELEMENT AND THE LOCAL COASTAL PROGRAM LAND USE Amendment 904 PLAN TO RE- DESIGNATE THE SUBJECT PROPERTY FROM 1514 West Balboa Blvd. GOVERNMENT, EDUCATION AND INSTITUTIONAL FACILITIES (45) (GEIF) TO TWO FAMILY RESIDENTIAL (R -2), AMEND DISTRICTING MAP NO. 9 TO REZONE THE SUBJECT PROPERTY FROM PLANNED COMMUNITY (PC) TO TWO FAMILY RESIDENTIAL (R -2) AND TO ESTABLISH A FIVE FOOT FRONT YARD SETBACK ALONG THE WEST BALBOA BOULEVARD FRONTAGE OF THE SUBJECT PROPERTY. Adopt Ordinance No. 2000 -15 approving Amendment No. 904. CONTRACTS AND AGREEMENTS 7. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR C -3365 TRAFFIC ENGINEERING SERVICES IN CONJUNCTION WITH THE Traffic Phasing TRAFFIC PHASING ORDINANCE (TPO) STUDY FOR PHASE II Ordinance Study CONSTRUCTION OF THE HOAG HOSPITAL MASTER PLAN OF Phase II of the DEVELOPMENT. Approve a Professional Services Agreement with Master Plan of Linscott, Law & Greenspan Engineers to prepare a Traffic Phasing Development for Ordinance (TPO) Study for proposed construction of Phase II of the Master Hoag Hospital Plan of Development for Hoag Memorial Hospital Presbyterian. (38) Council Member O'Neil abstained from voting on this item. 8. BALBOA PENINSULA ALLEY REPLACEMENT - AWARD OF C -3325 Volume 53 - Page 560 City of Newport Beach City Council Minutes August 22, 2000 I ON 1 s►` Volume 53 - Page 561 CONTRACT (C- 3325). 1) Approve the plans and specifications; 2) award Balboa Peninsula the contract (C -3325) to Nobest. Incorporated for the total bid price of Alley Replacement $385,015 and authorize the Mayor and the City Clerk to execute the (38) contract; and 3) establish an amount of $38,500 to cover the cost of unforeseen work. 9. AMENDMENT TO THREE PARTY AGREEMENT BETWEEN THE C- 2931(B) CITY OF NEWPORT BEACH, COSTA MESA SANITARY DISTRICT, Three Party Agreement AND ORANGE COUNTY DEVELOPMENT AGENCY [C- 2931(B)]. Construction of Authorize the Mayor and the City Clerk to execute an amendment to the Sanitary Sewer Facilities three party agreement which adjusts the location of the proposed Bristol Birch & Bristol Street Pump Station and abandons a City sewer on Birch Street and allows (38) connection to the proposed Costa Mesa Sanitary District gravity sewer. 10. AGREEMENT FOR THE INSTALLATION OF INTERNET C -3363 COMPUTER VIDEO EQUIPMENT AT NEWPORT BEACH Lifeguard Video LIFEGUARD HEADQUARTERS. Continue to City Council meeting of Equipment September 12, 2000. (38) 11. LANDSCAPE MAINTENANCE SERVICE AGREEMENTS. 1) Approve C -2160 service agreement with TruGreen LandCare, Inc. to provide park and Landscape Maintenance turfgrass maintenance at certain City parks and facilities; and 2) approve Service Agreements the assignment of the April 8, 1996 California Landscape Maintenance (38) Agreement to provide landscape maintenance of City medians and roadsides to TruGreen LandCare. 12. COUNCIL APPROVAL OF CLAIMS ADMINISTRATION SERVICES C -3366 FOR THE CITY S GENERAL LIABILITY PROGRAM. Approve contract General Liability to provide Third Party Administration (TPA) services for the self - insured Claims Administration general liability program to Carl Warren and Company for a 3 -year term Services beginning September 1, 2000. (38) MISCELLANEOUS ACTIONS 13. PLANNING COMMISSION AGENDA FOR AUGUST 17, 2000. Receive Planning Commission and file. (68) 14. OIL FIELD OPERATION IMPROVEMENTS - WATER INJECTION Oil Field Operation TEST AND ESTABLISHMENT OF THE OIL AND GAS RESERVE Improvements DESIGNATION FUND. 1) Authorize improvements to oil field production (73) through injectivity tests that may lead to a waterflooding program; 2) authorize the purchase of one Wemco Mechanical Flotation Unit from Separation Specialists, Inc., of Bakersfield, California, for the amount of $50,000; and 3) establish an Oil and Gas Reserve Designation Fund for the Future Abandonment of the City's oil wells. 15. BALLOT TITLE FOR MEASURE T FOR NOVEMBER 7, 2000 Measure T ELECTION. Receive and file. (39) 16. REQUEST APPROPRIATION OF $16,000 FROM TENNIS RESERVE BA -003 ACCOUNT TO EXPENDITURE ACCOUNT. Approve BA -003 to transfer Tennis Reserve Account $16,000 from the Tennis Reserve account 010 -3742 and appropriate to (40/62) Volume 53 - Page 561 City of Newport Beach City Council Minutes August 22, 2000 account 4310 -9010 to permit the enhancement of the City's recreational programs. 17. Item removed from the Consent Calendar by Council Member Ridgeway. 18. NOTICE OF CITY MANAGER AND CITY ATTORNEY_ ABSENCE FROM SEPTEMBER 26TH COUNCIL MEETING. Receive and file. 19. "TASTE OF NEWPORT" BANNERS. Approve the request of Newport Harbor Area Chamber of Commerce for the installation of 155 banners and 126 flag banners from August 23, 2000 to September 22, 2000, along Newport Center Drive, Newport Center Drive East/West ("ring road "), MacArthur Boulevard, San Joaquin Hills Road, Jamboree Road, Westcliff Drive, Newport Boulevard, and East Coast Highway. Motion by Mayor Pro Tern Adams to approve the Consent Calendar, except for the item removed (17), and noting the abstention of Mayor Pro Tem Adams and Council Members Thomson and Debay on Item No. 1, and the abstention of Council Member O'Neil on Item No. 7. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None Council Member Debay stated that Item No. 9 is a three party agreement between the City, the Costa Mesa Sanitary District and the Orange County Development Agency for some reconstruction on the City's sewer system. She complimented Public Works Director Webb and Utilities Services Manager Davidson for their work in improving the City's sewer infrastructure. Referring to Item No. 12, Council Member Debay requested that a future City Manager Newsletter include the cost of settlements for the past year. ITEMS REMOVED FROM THE CONSENT CALENDAR 17. IMPLEMENTATION STATUS OF REFUSE CONTAINER ORDINANCE. Council Member Ridgeway announced that there is a new requirement for the refuse containers in the City and that about 1000 residents have yet to comply. He stated that enforcement will begin Monday, October 2, 2000. He confirmed that the maximum capacity allowed is 35 gallons per container. City Manager Bludau read from the list of refuse container requirements, which included that the containers cannot exceed 35 gallons in capacity, must be constructed of plastic or similar watertight material, may not be constructed of metal, must have fixed, immobile handles located below the Volume 53 - Page 562 INDEX Council Meeting Attendance (33) Taste of Newport Banners (74) Refuse Containers (44) City of Newport Beach City Council Minutes August 22, 2000 top edge, must have a watertight cover that is not permanently attached, shall be tapered with the diameter of the bottom no more than five inches less than the diameter of the top, and trash bags shall not exceed the 50- pound maximum capacity. City Manager Bludau added that enforcement is taking place one month later than the City Council's initial direction. City Manager Bludau explained that the City started the program later than intended. Per Mayor Pro Tem Adams' suggestion, City Manager Bludau announced that the Veterans Charities of Orange County has implemented a program to pick up old containers and deliver new ones. He stated that more information can be obtained by calling the Veterans Charities at (714) 547 -0615, or by contacting the City. Mayor Noyes announced that the action on the item was to receive and file. PUBLIC COMMENTS Allan Beek apologized for comments made at the City Council meeting of August 8, 2000, during the Public Comments section and stated that they were not intended to show any criticism of the City Clerk. He added that the City Clerk has been completely professional, competent and fair in all of her interactions with the proponents of the Greenlight initiative. PUBLIC HEARING 20. CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT RENEWAL AND LEVYING OF ASSESSMENTS FOR 2000 -2001 FISCAL YEAR. Associate Planner Trimble stated that one written protest to the Corona del Mar Business Improvement District (BID) was received, and that the protest was really more of an appeal for an exclusion from the BID or a lowered assessment. Associate Planner Trimble stated that the BID Board has decided to assess all businesses with a Corona del Mar address since the Board feels that the image of Corona del Mar, as a whole, is being improved to the benefit of all businesses. Mayor Noyes opened the public hearing. Per Trebler, 2121 East Coast Highway, stated that his letter of March 9, 2000, is included in the agenda packet. In addition to the points made in the letter, he pointed out the location of his business in the Business Improvement District Boundary map in the staff report. He noted that the office complex immediately across the street is not included in the BID. Additionally, Mr. Trebler suggested that the City Council look carefully at the assessments being set and make sure that the businesses being assessed are the businesses benefiting from the BID. Mr. Trebler stated that the City Council could possibly consider two levels of assessments, with those businesses outside of the area paying less. Don Glasgow, Chairman of the BID Board, stated that the BID has Volume 53 - Page 563 INDEX Res 2000 -78 Corona del Mar Business Improvement District (BID) (27) City of Newport Beach City Council Minutes August 22, 2000 INDEX accomplished a great deal and has worked well with the City. He stated that the plans for the future are. even, greater and mentioned the upcoming request of the BID to add approximately 100 trees in the area. He added that the BID has also been working with CalTrans on the relinquishment of the highway and sidewalks, and has been involved with all of the details of the Vision 2004 plan. Mr. Glasgow asked for the City Council's support in renewing the BID so that the efforts of the BID could continue. Additionally, he thanked the City Council and the City staff for all that they've done. Mayor Noyes thanked Mr. Glasgow and the others involved with the BID for their hard work. Hearing no further testimony, Mayor Noyes closed the public hearing. Council Member O'Neil stated that the BID is operating with great motivation and with great people behind the efforts to revitalize the quaint character and charm of the Corona del Mar area. He requested a response from staff on Mr. Trebler's comments. Associate Planner Trimble stated that the decision on whether to assess a business improvement district at different levels is usually made by the board of directors elected by the members, and that business improvement districts are usually self - managing. He stated that the BID Board, in this case, has been clear that they do not want different assessment levels and has considered the request of Mr. Trebler. Associate Planner Trimble stated that the situation on Marine Avenue, where the business improvement district does have different assessment levels, is different because it's mostly retail. Motion by Council Member O'Neil to adopt Resolution No. 2000 -75 confirming the levying of assessments for the Fiscal Year of September 1, 2000 to August 31, 2001 since the protests represented less than 50 percent of the total assessment amount; and request that, during the upcoming year, the Corona del Mar Business Improvement District Board look at the property at 2121 East Coast Highway to determine if it is geographically within the area benefiting from the District. Council Member Ridgeway stated that the property across the street from 2121 East Coast Highway is in Fashion Island and not a part of Corona del Mar proper, but did acknowledge his support for the motion. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Abstain: None Absent: None CONTINUED BUSINESS 21. WEB SITE REVIEW AD HOC COMMITTEE (contd. from 8 /8 /00). Res 2000 -79 Web Site Review Volume 53 - Page 564 City of Newport Beach City Council Minutes August 22, 2000 Mayor Noyes announced that the purpose of the Web Site Review Ad Hoc Committee will be to review what should and shouldn't be allowed on the City's web site. Mayor Noyes appointed Council Member Ridgeway and Mayor Pro Tem Adams to the committee, with Council Member Thomson as the Chairman. Council Member Ridgeway requested that Management Information Systems Manager Paul Malkemus also be a member of the Committee. Motion by Council Member Glover to adopt Resolution No. 2000 -79 establishing a Web Site Review Ad Hoc Committee; and confirm Mayor Noyes' appointment of Council Member Ridgeway, Mayor Pro Tem Adams and Council Member Thomson (Chairman) to the Web Site Review Ad Hoc Committee. The motion carried by the following roll call vote: Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: Ridgeway Absent: None 22. SUPPLEMENTAL INFORMATION IN RESPONSE TO REQUEST FOR PROPOSALS FOR FUTURE USEIDEVELOPMENT OF MARINAPARK. Council Member Ridgeway stated that he would have to recuse himself from discussing or voting on the item at the current meeting. He stated that the City Attorney is attempting to determine if there is a conflict of interest or an economic impact on Council Member Ridgeway's property, since he lives within 1000 feet of the Marinapark property. Assistant City Manager Wood stated that the City received eight proposals in February in response to the City's request for proposals for future use or redevelopment of the Marinapark site. An economic analysis of the proposals was presented to the City Council at its meeting of May 9, 2000. And, at that time, the City Council asked that supplemental information be provided for all of the proposals. She stated that five of the proponents sent in the additional information requested by the July 17, 2000, deadline. Assistant City Manager Wood stated that the Parks, Beaches & Recreation Commission sent a letter reaffirming their interest in maintaining recreational and community facilities on the site. She stated that, recently, the American Legion informed the City that they did not supply supplemental information because they felt their original proposal was sufficient. Assistant City Manager Wood stated that staff reviewed all of the proposals and supplemental proposals, and found that Sutherland Talla Hospitality was the only one to provide all of the information requested. She stated that the dimension site plan and market feasibility study were most important, since they answered the questions about the possibility of all of the proposed uses being accommodated at the site and if the market demand was there for Volume 53 - Page 565 INDEX Ad Hoc Committee (24) Marinapark Proposals (73) City of Newport Beach City Council Minutes August 22, 2000 INDEX those uses. Assistant City Manager Wood stated that Terra Vista Management ranked a close second. She stated that although they did not provide all of the information requested, they maybe didn't necessarily have to since they were proposing to basically leave the property at status quo. Assistant City Manager Wood stated that the staff report includes a few options that the City Council might want to consider in regards to their action on the item at the current meeting. She added that there are two outstanding legal issues to keep in mind. They include the tideland boundary decision and the relocation impact study, if the mobile home park were eliminated. She added that one option at the current meeting would be to wait for these legal issues to be resolved. Assistant City Manager Wood stated that another option would be to narrow the field of proponents, without making a final decision on the use of the property. She stated that if this option is chosen, staff would recommend that Sutherland Talla Hospitality and Terra Vista Management be selected. Assistant City Manager Wood added that the City received a letter earlier in the day from RHC Communities. She stated that RHC Communities had originally proposed a mix of uses for the site, but the letter informed the City that they would also like to be considered if the property is left at status quo. Assistant City Manager Wood stated that another option for the City Council would be to determine that a hotel is appropriate for the site and direct staff to enter into more serious discussions with one of the hotel proponents. Per Mayor Noyes' request to provide some background on the item, City Attorney Burnham explained that the City sought proposals because it wanted to determine what the market would propose for the use of the Marinapark site. He added that the Marinapark tenant lease expired in April and was extended for two years. He stated that the City has been trying for eighteen months to two years to get a written determination from the State Lands Commission on the tideland boundary for the site. Council Member Debay confirmed with City Attorney Burnham that the previous lease and the lease extension with the Marinapark tenants included provisions that the Marinapark site may no longer maintain the mobile home park use. Council Member Debay requested that the Assistant City Manager explain a recent article in the Orange County Register that indicated that the City was intending to eliminate the American Legion and the Girl Scout house from the Marinapark site. Assistant City Manager Wood stated that there was a misunderstanding that the City had removed the American Legion proposal from further consideration. She explained that when a supplemental proposal was not received, the City assumed that the American Legion was not interested in being considered. She stated, however, that the problem may have been due to a change in leadership at the American Legion or their belief that if nothing from their original proposal had changed, they did not need to submit a supplemental. Regardless, when she learned that they did still want their original proposal to be considered, she suggested that the American Legion submit a letter explaining their intention. Assistant City Manager Wood stated that the letter was submitted and is included in the agenda packet. Volume 53 - Page 566 City of Newport Beach City Council Minutes August 22, 2000 IRI 11 Council Member Debay further confirmed that the City Council and staff are not intending to get rid of the American Legion or the Girl Scout house. Mayor Pro Tem Adams confirmed with Assistant City Manager Wood that a letter asking for supplemental information to their proposal was sent to the American Legion. Assistant City Manager Wood felt that the problem may have been due to a change in leadership during that same time. Mayor Pro Tem Adams confirmed with City Attorney Burnham that the decision by the State Lands Commission on the tideland boundary may not effect some of the proposals either way. City Attorney Burnham added that the location of the tideland boundary is only relevant to those projects that include some residential use of the site. Mayor Pro Tem Adams asked for a list of the requirements that would follow if the City Council chose a proposal at the current meeting, including the entitlement process and the California Environmental Quality Act (CEQA). He specifically asked about the identification and analysis of alternative uses in the environmental documentation process, and suggested that the alternative uses would possibly include the proposals not selected. Assistant City Manager Wood confirmed that if the project selected required an environmental impact report (EIR), alternative uses would have to be analyzed as a part of that process. She added that one alternative would be the status quo. Mayor Pro Tem Adams asked for a definition of status quo in this case, since the leases have expired. City Attorney Burnham stated that the status quo would be the current uses. Mayor Pro Tem Adams asked for an outline of what would take place from the time the City Council selected a proposal to an actual change in the use at the site. City Attorney Burnham stated that the list would include a project description, an initial study, a general plan amendment, a zoning designation, an environmental document and a coastal development permit. Assistant City Manager Wood added that it would also include an amendment to the Local Coastal Program (LCP). She stated that one of the first steps would be an in -depth study of the economic proposals to make sure that what is being proposed will generate the lease and tax revenue expected. Mayor Pro Tem Adams asked how the options being considered for the Marinapark site compare to the previous request of the Cultural Arts Center in regards to giving the exclusive rights to pursue entitlement for a portion of a site. City Attorney Burnham explained that the Cultural Arts Center request would have reserved a particular piece of land for a specific purpose, which is a land use decision. He stated that in the case of the Marinapark site, the options before the City Council related to selecting a proposal are with the understanding that a specific project for the site is not being selected. City Attorney Burnham stated that the direction to staff would be to bring back an agreement that would include the provision to negotiate exclusively with the project proponent, once the approval process was completed. Mayor Pro Tem Adams confirmed that the project proponent would have the opportunity to modify the land use proposals, and he Volume 53 - Page 567 City of Newport Beach City Council Minutes August 22, 2000 INDEX specifically asked if the details regarding any possible relocation of the American Legion could be resolved during the entitlement process. City Attorney Burnham stated that some issues could be resolved at staff level with the project proponent, but it would be the City Council that would make the final determination about what project would be approved. Mayor Pro Tem Adams further confirmed that if the City Council selected a proposal at the current meeting, there would still be flexibility and control over the project. Council Member Debay further clarified that the City Council is not selecting a specific project at the current meeting or determining that the site wouldn't remain at the status quo, but only considering the selection of a proposal which would give that project proponent the exclusive right to negotiate with the City. City Attorney Burnham added that the City Council's action would only direct staff to draft an agreement and wouldn't give the project proponent exclusive rights until that agreement is approved and executed. Council Member Glover confirmed that the project proponent would only be given the authority to work with various groups. She further confirmed with City Attorney Burnham that a timeframe for accomplishing the requirements of the process could be included in the agreement provisions. Council Member Glover asked if there was the possibility of the EIR process beginning before the City Council approved a project. City Attorney Burnham stated that the requirement for an EIR couldn't even be determined until a firm project was decided upon. Council Member Glover asked what an appropriate timeframe might be for a project proponent to present a project to the City Council. Assistant City Manager Wood suggested that ninety days might be appropriate. Council Member Glover asked if the relocation study and a plan for its implementation, as well as the negotiations with the parties currently on the site, could be accomplished in that amount of time. Assistant City Manager Wood stated that the City is requesting a relocation impact report, which would provide information on what the economic impacts to the residents would be. Mayor Pro Tem Adams asked if the decision at the current meeting would lead to a development agreement. City Attorney Burnham stated that the action would only give the developer the exclusive right to negotiate with the City relative to construction of the project, assuming that all approvals and documentation were completed. He stated that the agreement would also include timeframes for the completion of the requirements, leading up to environmental documentation, a general plan amendment, an LCP amendment and a zone change. He stated that the agreement would not include approval of a project. Mayor Pro Tem Adams suggested that there might be two sets of timeframes. Council Member Glover stated that a project could not be approved until a general plan amendment were approved by the Planning Commission and the City Council. City Attorney Burnham added that the steps would include the general plan amendment, the LCP amendment, the zoning designation and any other specific land use approvals that might be needed to implement the project. Assistant City Manager Wood stated that the Volume 53 - Page 568 City of Newport Beach City Council Minutes August 22, 2000 INDEX process is not uncommon. She stated that often a negotiating agreement is followed by a disposition agreement, which would include the project description, the financial arrangements and the schedule for accomplishing all of the entitlement approvals. City Manager Bludau added that staff could come back to the City Council with what components should be included in an agreement. Council Member Debay asked if the cost of relocation for those tenants using the mobile home park as their second homes is included in the impact study. Assistant City Attorney Clauson stated that the relocation impact report would only be done if the City Council decided to close the mobile home park. She stated that the report would include information on the costs to relocate the homes, the existing conditions of the homes and whether they are primary or secondary residences. She added that the focus is on the relocation of residents of the park and the options available. Assistant City Attorney Clauson stated that the report would also consider the factor in the lease that was entered into in 1985 that indicated to the residents that they acknowledged the fact that they are getting reduced rents to help pay for the relocation impact costs. She stated that the report is still required so that the City Council is made aware of the impacts of closing the park. Chris Shingleton, President of the Girl Scout Council of Orange County, thanked the City for the cooperative relationship with the Girl Scouts program center and boating program. She stated that any loss of the Girl Scout program center on Balboa Boulevard would be a tremendous impact to the Girl Scouts. She requested that the City Council make a commitment by requiring that any proposal accommodate the Girl Scout program center. She stated that the facility has been a major part of Girl Scout life in Newport Beach since 1947. She stated that there are currently over 900 girls in 65 troops that use the facility. Ms. Shingleton noted that the Sutherland Talla Hospitality proposal does preserve the program center, but the Terra Vista Management proposal does not guarantee it. Mayor Pro Tem Adams asked if Ms. Shingleton supported the Sutherland Talla Hospitality proposal. She responded by stating that the Girl Scouts support any proposal that preserves and protects the program center. She added that it would also be appreciated if a proposal included the enhancement of the facility. Mike Johnston, 641 St. James Road, stated that he couldn't understand how the City Council could state that they're not interested in moving the American Legion when some of the proposals being considered propose to do so. He additionally stated that if a proposal is selected at the current meeting, a project is really being selected also. Mr. Johnston stated that he heard someone say that the City shouldn't support the American Legion because many its members don't live in Newport Beach. He stated his concern for people who do not have service records and may underestimate the debt owed to the legionnaires. Mr. Johnston stated that a promise was made to the American Legion by a previous administration that they would not have to move. He stated that Post 291 is unique because it is the only post that is also a recognized yacht club. He stated that membership in the American Legion must be earned. He stated that when there are no longer Volume 53 - Page 569 City of Newport Beach City Council Minutes August 22, 2000 INDEX legionnaires to man Post 291, then the City would have the entitlement to reclaim the site. Council Member Debay stated that no one on the City Council is denigrating the American Legion. Mayor Noyes stated that the comment Mr. Johnston heard about someone not supporting the American Legion did not come from a council member. Mayor Noyes stated that the City Council desires to include the American Legion in the negotiation process. Tod White, 1120 E. Balboa Blvd., President of the Balboa Peninsula Point Association, stated that three years ago, he conducted a survey of association members regarding the alternative uses for the Marinapark site. He stated that the responses were 70 to 95% in favor of keeping the American Legion, the Girl Scout house and the public parks. He stated that there was no support for increased traffic or a hotel. He suggested that a resident quality of life analysis be done for the proposals, as well as the economic analysis and environmental impact analysis already being planned. Mr. White asked that the City Council give great weight to the opinions and feelings of the residents on the peninsula. Tom Hyans, President of the Central Newport Beach Community Association, stated that the mobile home park is a resident friendly, problem free, revenue - generating asset. He read from a letter written in February of 1997 that states the Association's support of continuing with the existing uses at the Marinapark site. It also stated that the Association supports public access to the beach and does not support any decentralization of commercial uses on the peninsula. Mr. Hyans stated that he heard that the traffic attributed to the proposed resort was underestimated and he asked Assistant City Manager Wood to explain the error. In conclusion, he stated that the proposed project on the Marinapark site is just another project to be placed on the City's waterfront, and he listed several other projects on the bay. Council Member Glover asked Mr. Hyans about the number of people that utilize the beach at the Marinapark site. Mr. Hyans stated the beach gets a lot of use on the weekends, especially by families with young children. Mayor Noyes stated that the responsibility and obligation of the City Council is to make sure that the Marinapark site, which is City -owned property, is serving the citizens of Newport Beach in a profitable way while offering the highest use. He stated that allowing the current tenants to pay half of the market rate is giving a gift of the land. Virginia Herberts, Balboa Peninsula Point Association, stated that she and her community association are in favor of a quiet use of the property, as currently exists. She stated that she heard there would be an additional 652 trips per day if a hotel was put on the property. Ms. Herberts stated her dissatisfaction with the current traffic and stated that she doesn't want to see any more traffic. She stated that there is no room for the current residents at the beaches or parks, and she doesn't want to see an increase in Volume 53 - Page 570 City of Newport Beach City Council Minutes August 22, 2000 tourists. I TO N►. Per Council Member Glover's request, Assistant City Manager Wood explained that the May 9, 2000, report to the City Council included a rough projection by the Public Works Department of the traffic that would be generated from each proposal. She stated that an actual traffic study has not been done. Assistant City Manager Wood stated that the mobile home park generates roughly 300 trips, on a daily average. In the report, she stated that the Sutherland Talla Hospitality proposal was estimated to generate 946 average daily trips. She stated, however, that staff incorrectly deducted the 300 trips for the mobile home park twice, meaning that the net new trips for the Sutherland Talla Hospitality proposal should have been 652, not the 358 listed in the report. Per Council'Member Adams' request, Assistant City Manager Wood stated that the peak hour trips were minimal for all of the proposals. She stated that the Sutherland Tells Hospitality proposal was estimated to produce 40 additional trips in each the morning and the evening peak hours. Bob Schoonmaker, 19 Canyon Island Drive, stated that he is a City Council candidate for District 5. He stated that he noticed in the Sutherland Talla Hospitality letter of intent that the proposal was to sublease the American Legion facility. Mr. Schoonmaker stated that a lease and a sublease differ in that a sublease is subject to termination. He stated that the land should be leased directly from the City to the American Legion. Additionally, Mr. Schoonmaker stated his support for the Greenlight initiative and his belief that City funds and resources are being wasted on projects that the public doesn't want. He stated that the City Council needs to get the message and should wait on any development until after the election on November 7, 2000. Allan Beek stated that he supports the proposal made by Ficker & Stevens, and agrees that City property should be used to serve City purposes. He stated that the Mayor's earlier comment about getting the highest use out of the property really means he wants the most lucrative use of the property. Mr. Beek stated that the citizens of Newport Beach are not complaining about taxes, fees or assessments, they're complaining about the traffic and the loss of marine facilities. He stated that the Economic Development Committee and the Conference & Visitors Bureau both seem to only create more traffic. He concluded by stating that Ficker & Stevens has done an excellent job. George Grupe, P. O. Box 834, stated that he is a member of the American Legion, which has been in Newport Beach for seventy years and was even used by the Nation's first cub scouts. He stated his understanding for the City wanting to construct Bay Avenue, but he stated that the trade for the land with the American Legion should be upheld. He stated that the City Council and staff should have access to, and study the book, entitled Legion Leases 1924 to 1998. He asked why the State Lands Commission is waiting so long to give a reasonable answer to the City's question about the tidelands. He stated that the property was to be held evermore for the American Legion. Mr. Grupe asked if the City Council is planning to move Volume 53 - Page 571 City of Newport Beach City Council Minutes August 22, 2000 INDEX the American Legion and the Girl Scout house. Lastly, Mr. Grupe stated that the City hosted the Congressional Medal of Honor Association in 1987 and it required the cooperation of the City and the American Legion. He stated that he was also a part of the ten -year anniversary of the event and that required the American Legion facility also. Pat Dolan, local resident, stated that he was before the City Council approximately six years prior, as the Commander of the American Legion, to request that the park be renamed to Veterans Memorial Park. He stated that the support was overwhelming and he hoped that the sentiment had not changed. Mr. Dolan stated that the American Legion began in 1923 with 37 members. He stated that the American Legion received a firm commitment from the City that the current site would be their permanent home. He stated that everything on the site was paid for or done by the hands of American Legion members. Mr. Dolan read from Terrance Phillips' August 21, 2000 column in the Daily Pilot. Mr. Dolan stated that the citizens of Newport Beach seem to have some distrust in the direction the leaders are taking the City. He stated that the City has the duty to provide for the access to emergency care by not allowing more traffic. Mr. Dolan stated that college- educated people in the planning process don't learn about pride in a community or the importance of listening to the citizens. Council Member Debay asked what Mr. Dolan thought of the Sutherland Talla Hospitality proposal to move the American Legion to 18th Street, building a new facility, constructing a new kitchen and providing a park. Mr. Dolan responded by stating that there is a lot of pride in the current facility. Elaine Linhoff, 1760 E. Ocean Blvd., stated her agreement with many of the comments made at the current meeting. She pointed out that the City is in the process of initiating changes to the general plan. She stated that the City shouldn't consider developing the Marinpark site until the general plan update is completed. She stated that the Marinapark site is the last of the City -owned sites on the waterfront. Ms. Linhoff also stated that hotels are risky investments. She pointed out that hotels were filing bankruptcy throughout California ten years prior. Madeline Levy, a senior at Corona del Mar High School, stated that Mayor Noyes earlier in the current meeting stated that one of the most prime considerations when looking at the proposals is finding the most profitable one for the City. Mayor Noyes stated that he actually stated that it was the consideration for the highest use of the property or what is best for the community. Ms. Levy stated that she agreed and wanted to point out that there are other types of profit than just the monetary kind. She continued by stating that the City Council and the speakers in the audience should be given their due respect. She stated that those in the audience who wished to be heard should come to the podium and state their opinion rather than commenting from their seats anonymously. Volume 53 - Page 572 City of Newport Beach City Council Minutes August 22, 2000 INDEX John McDaniel stated his agreement with the comments made by Mr. Dolan. He pointed out that the Sutherland Talla Hospitality proposal did not include providing a marina for the American Legion at the new site. He stated that the Newport Beach Post is the only American Legion in the world that provides a yacht club. He stated that it would be devastating to lose their yacht club. He added that the Southern California Yachting Association recognized the American Legion Yacht Club as the best yacht club during five of the previous six years. Mr. McDaniel suggested that the American Legion site be made a memorial to all veterans. Dennis Lahey, 4 Latitude Court, Commander of the American Legion, suggested that if the Marinapark site were left as is, the City could save a lot of money in studies. He thanked Assistant City Manager Wood for her understanding of the communication problem regarding the supplemental proposal and Deputy City Manager Kiff for providing copies of the extended lease. He stated that the situation of possibly moving the American Legion is an emotional issue. He stated that tradition is important and the legionnaires want to stay exactly where they are. Mr. Lahey added that the American Legion feels it has the moral, legal and political right to remain on the current site. He stated that the American Legion was the first community organization and has over 3,000 members, with over 42% of them being Newport Beach residents. He stated that, legally, the trade made in 1938 was permanent and there are many avenues of law that the American Legion can pursue. Additionally, Mr. Lahey stated that, politically, over 90% of the Newport Beach residents polled support leaving the American Legion where it is currently located. He concluded by stating that the American Legion serves the City and it is difficult to be in adversary position, but they will fight if need be. He stated that the American Legion has the support of the community. John Rettberg, 1770 W. Balboa Blvd., representing Terra Vista Management, stated that they worked very hard on their proposal. He stated that the mobile home park lease is not a gift, as mentioned earlier in the current meeting by Mayor Noyes. He stated that the tenants offered to increase the lease to market value three years prior. Mr. Rettberg additionally stated that the Terra Vista Management proposal is not a status quo proposal, but doubles the rents, opens the park to the users of the tennis facilities, provides for better access to the beach and improves parking. He stated that the increase in income is also substantial and is risk free. Mr. Rettberg added that 50% of the people that own a mobile home at Marinapark, live there full-time. He stated that many of the tenants are elderly. He concluded by thanking the City and staff for their cooperation. He stated that Terra Vista Management wants to continue working with the City and requested that the City Council not narrow the selection to only one developer. Tim Bercovitz, 1240 Balboa Blvd., Commodore of the American Legion Yacht Club, stated that the American Legion facility in its present location is possibly one of the City's most community- oriented organizations. He mentioned the Character Boat Parade and how proud the American Legion is of the event. He stated his concern for what would happen to the American Legion if it had to be closed for a year during construction, if it had Volume 53 - Page 573 City of Newport Beach City Council Minutes August 22, 2000 o11 D►,_ to move. He added that they are also very proud of their yacht club. Mr. Bercovitz stated that the American Legion veterans have helped to make the way of life all enjoy possible. Stephen Sutherland, Principal Partner, Sutherland Talla Hospitality, stated that he is a Newport Beach resident. He introduced Bill Weatherby, Executive Vice President of the Sportsclub Company, and Ruth Ormsby, Director of Development for Regent International Hotels, both in attendance at the current meeting. Mr. Sutherland stated that the Sutherland Tells Hospitality proposal is for the development of a Regent Resort on the Marinapark site. He stated that the Regent Resort is designed to be a five - star luxury resort, consisting of 156 guestrooms and suites. He stated that they also plan to acquire and restore two yachts, to serve as floating suites. He stated that the project will be low density and high quality. He stated that the guestroom and lobby structures will total approximately 123,000 square feet, with the coverage for the overall parcel at 23 %. Mr. Sutherland stated that the traffic study prepared by City staff shows five additional daily peak trips over the existing use, although he understands that this figure will be corrected. He stated that there is more to the project than revenue, such as view corridors, extensive landscaping, utilization of the marina and guest docks, a new boardwalk, improved public access to the beach, a sailing and rowing club, a spa and a new park.. He stated that the property and its facilities will be open to the public. Mr. Sutherland stated that the initial request for proposals was issued in November of 1999, with supplemental information requested in May of 2000. He stated that if the City Council recognizes that the Sutherland Talla Hospitality proposal was the only one submitted that included all of the required information, he asked that it be advanced to the next level. Mr. Sutherland stated that there is great concern over what will happen to the American Legion under the Sutherland Talla Hospitality proposal. He stated that he began meeting with the American Legion officials over eighteen months ago to let them know what was planned and how it could affect the American Legion. He stated that through the various meetings with the American Legion officials, he has an understanding of where the American Legion stands. Mr. Sutherland added that he issued a binding letter of intent to the American Legion that says if the Regent Resort is built, a new American Legion facility will be built on the waterfront. He stated that Sutherland Tells Hospitality will complete all work for the project, dedicate the facility to the American Legion and sublease that portion of the site. He stated that since the letter was submitted, he's heard that the American Legion may have a problem with a sublease. Mr. Sutherland stated that he would not oppose a direct lease with the City, but that the proposal is for a $1 per year sublease. Mr. Sutherland added that the Sutherland Talla Hospitality proposal has also included the Girl Scout house. He stated that the plan is to leave the existing facility as is, but he'd be happy to talk about additional improvements with the Girl Scouts. Lastly, Mr. Sutherland pointed out that Regent International Hotels is a world class hotel operator. He stated that they continue to have an interest in being involved with the project and the development process. They have stated that they will work to ensure that the Regent Resort meets the five- Volume 53 - Page 574 City of Newport Beach City Council Minutes August 22, 2000 Ili star luxury standards. Mr. Sutherland concluded by stating that the proposal submitted by Sutherland Talla Hospitality was the only complete proposal received by the City, and included a marketing analysis by PKF Consulting. Mayor Noyes stated that a major key to the project is to make sure that the American Legion is happy. He knows that they don't want change, but he also acknowledged the significant reduction in rent that Sutherland Talla Hospitality is proposing. He noted that the American Legion currently pays $100,000 per year and Sutherland Talla Hospitality is proposing a $1 per year sublease. Mayor Noyes also noted that the City Council has been elected to be fair and honest to all citizens, and to manage City property in an appropriate way. He asked Mr. Sutherland to express his viewpoints on the matter. Mr. Sutherland stated that the three commanders he has met with have been open in discussing the project, although they have expressed their concerns about moving. He added that only a few of the American Legion officials have discussed the project. Mr. Sutherland stated that it is important to inform the other members of the plan and to show what the benefits to the American Legion and the community might be. He stated that it would also be important to meet with the various residential groups in the area. Mr. Sutherland stated his belief that once people see how the project is laid out, there will be less opposition to it. He stated that the project is a tremendous revenue source to the City, but is also a small hotel without a tremendous influence on traffic. He stated that he believes the project can receive support. Council Member Debay confirmed with Mr. Sutherland that the reason the American Legion would need to be moved is so that 15th Street, because of its width, could be used for the entrance to the resort. She requested that Mr. Sutherland include discussions about the importance of the yacht club and the sharing of the marina in his negotiations with the American Legion. Mr. Sutherland stated that the letter of intent does not propose a marina at the site, but he stated that it could be included in the discussions. Mayor Pro Tem Adams suggested that some type of incorporation of dock facilities should be a part of the plan. He stated that it would be up to Mr. Sutherland to figure out how they would be built. Mayor Pro Tem Adams further suggested that since the current American Legion facility has such sentimental value, possibly the existing structure could be moved to the new site. Mr. Sutherland stated that it has been discussed and is a possibility. Mayor Noyes asked for a definition of peak hour traffic. Mayor Pro Tem Adams stated that the numbers that were quoted earlier were for weekday peak hour periods. Mr. Sutherland noted that the check - in and check -out times for a hotel are not during the peak hour periods. Assistant City Manager Wood added that a traffic study has not been performed. Pat Harrison, 2270 Channel Road, stated that she doesn't want to see the American Legion move, but that her main concern is the traffic. She noted Volume 53 - Page 575 City of Newport Beach City Council Minutes August 22, 2000 INDEX the heavy traffic on the peninsula up to emergency vehicle access. and the difficulty for Mayor Noyes stated that he used to live on the peninsula also and understands the unique situation. Rachelle Foster stated that she attended the City Council meeting three years ago when the mobile home park tenants offered to increase the rent they pay. She added that she doesn't understand why another hotel is needed. She stated that she surveyed the hotels on the peninsula at that time and the average occupancy during the winter was 50 %. Ms. Foster stated that other matters should be handled by the City Council such as the traffic, the number of people that visit the beach, the bay and ocean water quality, the lack of restrooms on the beach and fire truck access on the peninsula. She stated that the traffic is difficult and the City Council needs to consider this before adding another hotel. Dan Purcell, 3 Canyon Lane, stated that he sees a community outreach problem relative to the City Council. He wondered how people are getting their information and if they're getting enough of it. He stated that in the current situation, he can't understand why some of the American Legion members don't have access to the plans for the proposed project. Mr. Purcell thanked the City staff for their professionalism. Council Member Glover stated that Newport Beach is blessed because of its beaches. She noted that when people are blessed with something nature provides, they have to share it. She stated that the peninsula has a traffic problem and probably always will, but she stated that the people that live down there are probably some of the most blessed people in the world. Mayor Pro Tem Adams stated that the mobile home park has been on the site for 45 years, enjoying the use of public lands for a limited term lease. He stated that the lease was structured with low lease payments over the final years in expectation that the mobile home park would be eliminated when the lease expired. Mayor Pro Tem Adams stated that a determination needs to be made on the best use of the land. He stated that some parameters exist on what can be put on the land, depending upon the upland or tideland designation. He stated that the proposal from Sutherland Talla Hospitality is the best one and provides the best use of the land for the City. He stated that the City does not have a five -star hotel and he compared it to the Ritz Carlton and its staying power. Mayor Pro Tem Adams stated that the proposal is for a small, intimate hotel with low density. He stated that it represents a huge investment in the peninsula. He stated that the traffic generated from the project will be low and it will be a quiet use of the property, as some local residents are requesting. He stated that the facility would also bring in a different type of visitor to the City and those that would be an asset to the community. Mayor Pro Tem Adams stated that the City could be proud of the resort. Mayor Pro Tem Adams stated his understanding for people not wanting change, but he stated that new traditions and landmarks can be created without negatively impacting the quality of life. He stated that he Volume 53 - Page 576 City of Newport Beach City Council Minutes August 22, 2000 INDEX understands the traditions and history of the City and he feels comfortable that the proposed resort can fit in.. He stated that the project should only be considered if the American Legion members can be satisfied that it's the right thing for them. He hoped that, during negotiations, the American Legion might see the project as being in the best interest of the City and would possibly offer a compromise. He also commented about the sentimental value of the structure and felt that strong consideration should be given to moving the existing structure, if relocation were determined to be necessary. He added that everything should also be done to preserve the marina component of the American Legion. Mayor Pro Tem Adams agreed with comments made earlier by Council Member Glover and the traffic that has always existed on the peninsula due to beach visitors. He stated that he didn't feel that the environmental analysis would show a significant traffic impact for the proposed project, but if it did, he wouldn't be in support of the project. Mayor Pro Tem Adams stated that the financial benefits are secondary, with land use being the primary concern. He stated his belief that the proposed resort could improve the entire area. He stated that the peninsula has limited revenue and the revenue generated from the development should be reinvested in the peninsula and the surrounding areas. He stated that he could support moving forward with the Sutherland Talla Hospitality proposal, allowing them to negotiate with the American Legion and the Girl Scouts and proceed with environmental documentation. He added that maybe the environmental process will show that the project won't work, but he stated that he believes that once people understand the project, they will appreciate the benefits. Council Member Thomson stated that if the decision were his alone to make, he would vote for leaving the American Legion and the Girl Scout house and adding a view park. He stated, however, that the City Council understands that it needs to optimize the property and select a developer that is the most equipped to complete the process. He stated his support for letting Sutherland Talla Hospitality proceed, as long as they can make the American Legion and the Girl Scouts happy. Council Member Thomson asked for an explanation from the City Attorney about the obligation of the City if the City Council were to select a developer to proceed with the process. City Attorney Burnham stated that it would depend upon the terms of the agreement, which would come back to the City Council for approval. He stated that the terms and conditions of the agreement would have to be met, and the Planning Commission, City Council and Coastal Commission would also have to review and approve the project. City Attorney Burnham added that the agreement could prohibit the assignment of any interest that the agreement might create. Council Member Thomson stated that he agreed that a small hotel, like the one proposed, would not cause a significant impact on traffic. Motion by Mayor Pro Tem Adams to direct staff to prepare an agreement with Sutherland Talla Hospitality for City Council review and possible approval on September 12, 2000, that would designate Sutherland Talla Hospitality as the sole entity with which the City will participate with Volume 53 - Page 577 City of Newport Beach City Council Minutes August 22, 2000 INDEX respect to any redevelopment of Marinapark provided they fully comply with the terms of the agreement and, that all discretionary approvals for redevelopment are granted by all agencies with jurisdiction over the site; that the agreement would also establish the obligations of Sutherland Tells Hospitality with respect to each phase of the planning process including the preparation of all studies, documents, plans and reports necessary to obtain all required permits and approvals for any redevelopment; and that the agreement shall specifically prohibit any assignment of the rights or duties created by the agreement. City Attorney Burnham clarified that the motion does not approve the project or make any land use approvals, but allows the City to deal exclusively with Sutherland Talla Hospitality subject to their ability to meet and comply with the obligations of the agreement. Mayor Pro Tem Adams also suggested that the agreement include timeframes for when various requirements would need to be met. City Attorney Burnham added that the agreement can be written to protect the American Legion as much as possible, but he pointed out that the City Council does not have the legal authority to delegate to the American Legion, or any other private party, the responsibility of making the land use decisions. He stated that these can only be made by the City Council. Mayor Pro Tern Adams stated that Sutherland Talla Hospitality could be encouraged to work with the American Legion. Mayor Noyes added that if the American Legion won't go along with the proposed project, it won't happen, but that Sutherland Talla Hospitality deserves the opportunity. City Attorney Burnham stated that he will attempt to structure the agreement to acknowledge the political realities involved with the proposal. Council Member O'Neil reminded everyone that what is leading the discussion is the necessity to make a decision on property that is being occupied under short -term extended leases. He stated that the City Council is trying to find the appropriate future use the property, whether it is to extend the current leases or put a different type of use there. He stated that the City Council owes it to the current tenants and the citizens in the community to make a decision, which is why the request for proposals process was begun. Council Member O'Neil stated that Sutherland Talla Hospitality was the most responsive and he felt they should be given the chance to perform. He stated that he is not motivated by economic benefits so much as the potential for the tremendous use of the property and the chance to revitalize the peninsula. Council Member Debay apologized for her comments earlier in the meeting to Mr. Johnston. She explained that she felt he was saying that the City Council held a disregard or lack of concern for the American Legion. She stated that she supports the American Legion, but also feels that the project could help the peninsula a great deal. Volume 53 - Page 578 City of Newport Beach City Council Minutes August 22, 2000 Mayor Noyes stated that the City holds the opinion of the American Legion in high regards and thinks they feel the same way about the City. He asked Mr. Sutherland if he fully understood how the City Council felt and if he was still willing to take on the responsibility. Mr. Sutherland stated that he was and feels that the project has a lot of merit for the City and the area. He stated that he has been treated well by the American Legion officials and he intends to continue meeting with them as well as the other members. He stated that he'd like the opportunity to discuss the possibilities of the American Legion and the Regent Resort being neighbors. Mr. Sutherland concluded that the project is worthwhile and worth doing. The motion carried by the following roll call vote Ayes: Thomson, Glover, Adams, Debay, O'Neil, Mayor Noyes Noes: None Abstain: Ridgeway Absent: None Mayor Noyes complimented Ms. Levy for her comments earlier in the meeting and he thanked the audience for their patience and testimony. CURRENT BUSINESS 23. CORONA DEL MAR STREET LIGHT BANNERS Item continued. MOTION FOR RECONSIDERATION - None. ADJOURNMENT - 10:10 p.m. rrrrrrrraaaattttttteaaa,wxrrrrrr The agenda for the Regular Meeting was posted on August 16, 2000, at 4:10 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 579 INDEX Corona del Mar Street Light Banners (74)