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HomeMy WebLinkAbout01 - Minutes - 7-13-04 & 7-19-04July 27, 2004 Agenda Item No. 1 CITY OF NEWPORT BEACH 4 ¢J N '0 i t. 1'tc.: Clc :lA City Council Minutes Study Session July 13, 2004 - 5:14 p.m. INDEX NEWPORT BEACH PUBLIC FACILITIES AUTHORITY MEETING — 5:13 p.rn. ROLL CALL Present: Heffernan, Rosansky, Bromberg, Webb, Nichols (arrived ), Mayor Ridgeway Absent: Adams (excused) CURRENT BUSINESS Y� t; 3 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Heffernan noted that a map was mot inclpred with Item 6 (Proposed Shopping Center Project). Assistant City T% � er Wood indicated that either a site plan or an atlas sheet will be provided bylru ht's meeting. Z. IRVINE RANCH WATER DISTRICT �Ilt1�ZD) ORAL YRE XTA ION. • Assistant City Manager Kiff stated that tre Irvine'Jt2n(ih Watc'r District (IRWD) requested to come before Council to highlight the i;iMdzorhey are working on that help Newport Bay. John Withers, IRWD' Board o - Directors President, stated that he became r,,,,,. President after seiv�ng on the, Board for 15ryears and wanted to conduct mu outreach to the conlnitleS.IRWD sery during his year as President. He reported that they are to the processof�Yr. +nsitioning from an engineering - focused organization to on Ahat is morc'[ocused around customer service. He utilized u 1'owerPoint presrnt�a4un, 2porting that IRWD serves Irvine, Newport Coatit, Santa Ana $��Bhts, a smMi:piece of the Back Bay, and portions of other surrounding Cornmxtau`ties. Mr "ithers stated that they focus on water and N" wastewater treatmentd reported that their drinking water comes from local groinha*ater wells and also imported from the Colorado River. He indicated that thetollect and at wastewater at the Michelson Water Reclamation Y °' Plant in Iii ,e and aP`ibe Los Alisos Reclamation Plant in Lake Forest, and produce abouY��B...a�uillion gallons of recycled water a day that is used for landscape irrigatt6n and other non - potable uses. He stated that their newest service involves the treatment of urban runoff by using reconstructed wetlands. Mr. Withers indicated that they have worked hard to have a diverse and reliable water supply. He reported that IRWD has sought to reduce its dependence on imported water by developing over 21 local wells in the past 25 years. Additionally, the water reclamation program allows them to stretch limited water supplies instead of use drinking water for irrigation and other non - potable uses. He stated that their future goal is to further reduce the percentage of their imported water supply to keep their rates low and their supply reliable. • Mr. Withers reported that 40% of their water supply is imported; 42% is local Volume 56 - Page 1046 City of Newport Beach Study Session Minutes July 13, 2004 groundwater; and 20% is recycled water. Paul Jones, IRWD General Manager, indicated that IRWD has invested a lot of study time to implement weather -based controllers that automatically adjust to factors like the weather and soil conditions to help with water conservation and urban runoff. He reviewed the five -tier rate structure in which they allocate water to each customer depending on their outdoor and indoor needs. He indicated that the allocation represents the first two tiers (low volume and conservation categories). He noted that people can also get waivers for events like filling pools. He pointed out, however, that people using in excess, fthe base are charged two times, four times, or eight times the base ratel.He�nokd that they contact customers in the higher tiers to see if there is a� �blew like a water leak. Mr. Jones indicated that this program was intcndedlb' address water conservation, but they have also seen a benefit with ury rung ft trol. He stated that the money they receive from the pena�ky s (ine nt, excessive, and wasteful categories) is used to fund the conservation progr ms: <r He explained that, after a person uses its first 100 cu. ft. of water, they start 'to_' climb up the tier. He assured everyone that people can still have lush' landscaping in their yard. Mr. Jones reported that a.very small percentage of c>. customers will be constantly in the penalty tiers II�'`noted, �owever, that they will waive the penalty if the charge was due to a probble &..like a leak and the customer fixes the problem and returns to normal consumption He agreed that a good customer service component is required to support this'system, but they have found that their customers are accus�omgd W this sytem. @ ,..: Mr. Jones reported that there are two tzrtiary tieatment� plants in which they e Ate6 treat water to a tertiary level that include'�primery aii� "secondary filtration and then disinfection with chlorine.. Ile stated tha£`11ZWD has one of the largest dual distribution systems in.the country and one'':'o£ the largest number of individual customer connections. lie- reii rated that having this enables IRWD to not purchase additional expensive Metropolitan 11'6 tter District (MWD) water and is, to some extent, a' wdter&aving.ineasure Mr. Jome -tated that they also supply water to the Green Acres project during the winger. - He Feported that . be water that comes from the Orange County Water',' istrict is..abouTt 1,000 pftbt per million total dissolved solids (TDS); however, IRWD's wif;Rr.is abouf 700 parts per million. He indicated that they �a'va n working w i y' ity staff to see if they can change their system so the salt le is reduced at We golf courses. He noted that, as you get closer to 1,000 TDS. th_a}rways turrown. Mayor Ridgeway noted that the two golf courses that are ha problems with the fairways have not been using Green Acres water for abo =_ _LX iuonths. Mr. Jones repQited that the Deep Aquifer Treatment System Project takes water from the deepest part of the groundwater basin. He stated that a deep aquifer has very high quality water, but it has a natural organic brown color. He indicated that this project uses membranes to filter out the color. He added that it also has low TDS. Mr. Jones reported that they began restoring the San Joaquin Marsh in 1995. He stated that it is about 320 acres and they pump water from San Diego Creek, take the water through the 65 acre pond system to remove about 75% of the Volume 56 -Page 1047 INDEX r�. • • • City of Newport Beach Study Session Minutes July 13, 2004 INDEX nitrogen from the water, and return it back to the San Diego Creek to go back to the Upper Newport Bay. He noted that nitrogen encourages the growth of algae mats in the Bay. He reported that they also manage sediment basins that are excavated every several years. Mr. Jones stated that the Natural Treatment System Project takes the same concept used in the San Joaquin Marsh and Wildlife Sanctuary for the treatment of wetlands and expands it to the entire San Diego Creek Watershed. He indicated that they considered 71 sites, but will be constructing at 31 sites. Mr. Jones stated that they were concerned that, after the flood season, the was a substantial amount of trash along San Diego Creek. He indicate :�ha�e� installed a trash boom through a pilot program last year to see would be effective in capturing anything. He reported that, between fal d now, they collected 1,152 lbs. of styrofoam, 630 lbs. of plastic, 5 lbs. —rru her, 120 lbs. of metal, 98 lbs. of glass, and 34 lbs. of paper 11 to that tie ll continue this pilot program and also determine why trashas: the boo Mr. Jones reported that the San Joaquin Reservoir has 1 c.:, He stated that it was originally a drinking water resery enhanced surface water treatment rule passed in Coiigr' drinking water reservoirs that did not have downstrea —im He indicated that they felt that it was not cost effective He noted that there was a landslide,.at the reservoir buttressed. Further, the reservoir wa reported that work began in January • the work entails filling in Canyon C, cons a new liner, aeration system, surge outl and perimeter access road, e noted chlorination facility. Jie' reported that t$e will begin to put water in the reservoir at the end:rof calOendar year d the water will come from the Michelson Water Redamation Pant. He staff shat the reservoir will supply their reclaimed water system but he has riot heard anything about surrounding r< ei residents being able to use the water {or iherr landscaping. He indicated that, in order to do tvhi�a there wow eed to Ue a connection, upgrades to the pipeline, and the pi;- ii es'would � with African empty since 1994. owever, when the O-W wired that all tment be covered. )ver the reservoir. was repaired and t2twed flogs. He e^e stated that np, and putting in , wash down line, rehabilitating the the ones stated `tl- Trine and Water looking runoff, an three phases and installing need to be enlarged. they, have been working on the Buck Gully Flow tality' Project for over a year with the City, the Orange id The Irvine Company. He indicated that they are vater runoff coming down the canyon, the quality of the educe the amount of runoff. He stated that there are ram which include monitoring the baseline for a year ised evapotranspiration OM controllers. 3. TOP STAFF PRIORITIES FY 2004 -05. City Manager Bludau reported that staff individually comes up with seven priorities, they are taken to the management team, and they come up with the top 10 priorities for the upcoming fiscal year. • Mr. Bludau utilized a PowerPoint presentation, stating that Priority 1 is to resume the process of planning a replacement or renovated City Hall and other Volume 56 - Page 1048 City of Newport Beach Study Session Minutes July 13, 2004 public safety facilities for Police, Fire, and Lifeguards. He indicated that this priority involves meeting with City Hall adjacent property owners to determine whether any property adjustments and/or planning coordination might be advantageous to the parties involved; conducting public outreach regarding the potential City Hall facilities; preparing and conducting public review of City Hall concepts; moving forward with working drawings and specifications; undertaking an assessment process to determine the quality of the City's essential public safety structures in order to plan for future needs; and determining a priority for the replacement/renovation of the City's essential public safety structures. Mr. Bludau noted that the priorities this are mostly capital improvement projects. He believed that the City has d job over the years in meeting the community's needs in terms of aries an other facilities; however, the City needs to take a look at public facilities. Mr. Bludau reported that Priority 2 is to begin construct�ori h7,gew Man`WER; Joint Use Library and adjust the playing fields to accoinmoda the new facility with the intent of occupying the library before the.end of 2005. He noted that this is the third year this item has been on the list. Hecated that this priority involves making the needed adjustments 'to. ad3 nt sports play fields in order to accommodate library and tennis cour ructio ;bidding the project; awarding the bid; and beginning construction in a mber. INDEX a.; Mr. Bludau reported that Priority 3 is'to''finalize the land yacion, develop plans and sperm cations, and begin con' ructii'1 Lthe Sanights Fire Station and Training Facility by June 30, noted that the staff • members responsible for this priority e�' lic ' s Director Badum, Building Director Elbettar %an'st.ommencing'�-ivith, ant CityfZvl3nagcr r , and Fire Chief Riley. He indicated that this "p involves` concluding property acquisitions; selecting a project architectthe prep aration of plans and specifications. �; i. Mr. Bludau repurted that Priority 4 is to, complete the analysis of the General Plan land use alternatives,hselect the preferred land use plan, and draft policies with the'.General.Plan Advisory. Committee (GPAC). He noted that the staff members responsible for thi riorny are Planning Director Temple and Assistant City M" er R' He indicated that this priority involves c&4 iiAidating the lair vse alternatives developed by GPAC subcommittees; analy7a g the four alternatives by using models to determine fiscal and traffic impacts�-an%d� other env�ionmental impacts; holding a public workshop on land use alternatives- selecting the preferred land use plan; and working with GPAC to develop policies. foi all the General Plan elements. I' Mr. Bludau reported that Priority 5 is to work cooperatively with Coastal Commission staff on the certification of the Local Coastal Program (LCP) Land Use Plan; resolving outstanding issues; and educating the Coastal Commission on how the City's policies comply with the Coastal Act. Mr. Bludau reported that Priority 6 is to begin preparing plans and specifications for the new Newport Coast Community Center. He noted that the staff members responsible for this priority are Public Works Director Badum, • Assistant City Manager Kiff, and Recreation and Senior Services Director Volume 56 - Page 1049 CJ • • City of Newport Beach Study Session Minutes July 13, 2004 Knight. He indicated that this priority involves developing conceptual plans for a $7 million community center, including association costs; and proceeding with the preparation of plans and specifications. Mr. Bludau reported that Priority 7 is to reach an agreement with the YMCA on an operations agreement for the Santa Ana Heights Community Center, finalize the conceptual development, begin the preparation of plans and specifications, and purchase the property. He noted that the staff members responsible for this priority are Public Works Director Badum, Building Director Elbettar, Assistant City Manager Kiff, and Recreation and Senior Services Director Knight., Mr. Bludau reported that Priority 8 is to develop an action plan fo Morning Canyon slope stabilization and vegetation management, and ding for plan implementation using this process as a template for Buck korks y. noted that the staff members responsible for this priority are Pub � 6D'tre or Badum, Building Director Elbettar, Assistant City Mangg[ Kid Fire hie£ Riley. He indicated that this priority involves receiving the consultant plan; conducting public outreach with adjacent property owners; initiating the CEQA process; and making funding applications to appropriate agencies ., Mr. Bludau reported that Priority 9 is to move fordaa­ with sphere issue discussions with the County regarding the Coyote Canyon. _•_dfill, assumption of tideland responsibilities, the redevelopment agency, aiid�Jf e John Wayne Airport (JWA) oversight. He noted t}ia staff members responsible for this ft priority are City Attorney Burnham, the fSeW t v Attorney, nd himself. He indicated that this priority involves coAhuQ tb fto t information on sphere issues in order to fully understand theii, details anential impacts; and submitting an offer to theeCounty regard` ing the CitYs willingness to accept certain responsibilities,on sphere issues. Mr. Bludau reporfefd�,that Priority 10 is to develop a Citywide "Succession Plan ning/Leadership`ZFayning Program -and 'associated training for internal talent. He noted that. thes aff mcm`icrsi'esponsible for this priority are Human Resources Director Axle Bu ldin g Director Elbettar, Police Chief McDonell, and Fire Chief Riley. lie m ca ed that this priority involves ascertaining the level of interest' oifitz ty em ees: identifying the core training components using employee inpeveloping training materials for each core component; and initiating a train rogram. He reported that, over the next five years, a significant number of tide department heads will be leaving the City. He stated that it i "s Y ne to addrj where future leadership will come from and to start a program to Identify an.Irtrain talent so the City does not have to look outside for I .F people. Y ' .2q In response tai Council Member Heffernan's questions regarding contract negotiations with City employees, Mr. Bludau reported that all of the contracts will be coming up in the next 12 months or have already been taken care of. He stated that this is an ongoing process and something the City has to do anyway. Mayor Ridgeway indicated that the ten priorities are discretionary and any of them can be removed. Council Member Heffernan noted that some of the priorities are ongoing and seem to have a life of their own. He believed that, from a cost perspective, labor costs would be the biggest item. Volume 56 - Page 1050 INDEX City of Newport Beach Study Session Minutes July 13, 2004 Mayor Ridgeway requested that the priorities be given to Council in a memo. PUBLIC COMMENTS - None. ADJOURNMENT - at 6:10 p.m. to Closed Session to discuss Coyote Canyon and the Marinapark lease. The agenda for the Study Session was posted on July 7, 2004, at 3:30 psn. on the City Hall Bulletin Board located outside of the City of Newpq each Administration Building. City Clerl Volume 56 - Page 1051 INDEX • • 0 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting July 13, 2004 - 7:00 p.m. STUDY SESSION — 5:00 p.m. CLOSED SESSION - 6:10 p.m. DRAFT INDEX A. RECESSED AND RECONVENED AT 7:00 P.M.-FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Absent: Adams (excused) C. CLOSED SESSION REPORT — Mayor Ridgeway announced that the Marinapark lease discussion has been continued to a special Closed Session hearing to be held on July 19, 2004, at 2:00 p.m. • D. PLEDGE OF ALLEGIANCE — Council Member Bromberg E. INVOCATION — Reverend Peter D. Haynes, Saint Michael and All Angels Episcopal Parish Church F. PRESENTATIONS Presentation by Bob Wright, Advocate and Education Coordinator of the Second Harvest Food Bank of Orange County, to Council Member Rosansky. Mr. Wright thanked Council Member Rosansky for participating in the National Hunger Awareness Day event on June 3, 2004. He stated that Council Member Rosansky spent the day working with volunteers picking produce from the Incredible Edible Park to feed the hungry in Orange County. Mr. Wright stated that the event was a success in raising awareness of the hunger issue in Orange County due to Council Member Rosansky's involvement. Council Member Rosansky commended the efforts of the Second Harvest Food Bank of Orange County. He suggested that possibly an area in the City could be selected for the creation of an edible park. Presentation by Peggy Fort, representing the Corona del Mar Centennial Foundation and the Executive Planning Committee. Ms. Fort invited everyone to attend a Gala Reception to launch the "100 -Day Countdown" of the Corona del Mar Centennial Celebration taking place at the Sherman Gardens on July 15, 2004, from 5:00 p.m. to 9:00 p.m. She announced that the Centennial Celebration would take place October 14 — 17, 2004. The event at the • Sherman Gardens will cost $25 in advance or $30 at the door, and tickets can be purchased online at cdm2004.com or by calling (949) 222 -3050. Volume 56 - Page 1052 City of Newport Beach Regular Meeting July 13, 2004 G H. Volume 56 - Page 1053 - NOTICE TO THE PUBLIC 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 Nichols stated that he attended the American Legion Fourth of July Boat Parade. He announced that 50 to 60 boats participated and that it was a well attended and fun event. • Council Member Nichols stated that he also attended the Friends of Oasis installation ceremony. He announced that there were approximately 270 people in attendance and that it was also a wonderful and well done event. • Council Member Webb announced that the Friends of the Library met earlier in the day and voted to donate $100,000 to the Children's Room at the Mariners Branch Library. They also voted to donate an additional $100,000 to help with the library construction shortfall that is expected. Council Member Webb thanked the Friends of the Library for their donations, which total $225,000. • Council Member Webb requested that staff look into the judicial restrictions that can be enforced on a dog that is continually running loose in his neighborhood. • • Council Member Bromberg announced that $165,000 was approved in the 2004 -05 budget for Marine Avenue streetscape. He stated that this will improve the benches, tree wells, trash cans and light poles on Marine Avenue, and that the work will take place in September and October of the current year. • Council Member Rosansky announced that during the 2003 -04 fiscal year, he used the District 2 discretionary funds that were remaining in the account when he was appointed to the City Council. He stated that $500 was donated to the Environmental Nature Center, $500 was donated to the Muth Interpretive Center, $3,000 was used for landscaping improvements in the Newport Shores area, $800 was donated to the Newport Heights theater and $1,000 was donated to the West Newport Community Center for children's equipment. • Council Member Heffernan asked when the current franchise agreements with Cox and Adelphia expire, and requested that a report on the progress of the negotiations be provided at the City Council meeting to be held on July 27, 2004. He noted that the renewal process has taken far too long. • Mayor Ridgeway thanked the Friends of the Library for their donations to the Mariners Branch Library. Public Works Director Badum announced that the project would go out to bid soon, and that the award of the bid is expected to take place at the City Council meeting to be held • Volume 56 - Page 1053 • City of Newport Beach Regular Meeting July 13, 2004 on September 14, 2004. • Mayor Ridgeway announced that of the money remaining in the District 1 discretionary fund account, $1,000 went to Newport Elementary and $1,000 went to Ensign Junior High School. I. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. Item removed from the Consent Calendar by a member of the audience. 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. CONTRACTS AND AGREEMENTS 3. AMENDED AGREEMENT BETWEEN THE CITY, THE COUNTY OF ORANGE, AND THE ORANGE COUNTY DEVELOPMENT AGENCY REGARDING A FIRE STATION AND COMMUNITY CENTER IN SANTA ANA HEIGHTS. Approve the amendment to an existing agreement between the City, the County of Orange, and the Orange County Redevelopment Agency to acquire real property for a regional community center and fire station and to construct a permanent fire station in Santa Ana Heights. 4. CORONA DEL MAR STATE BEACH IMPROVEMENTS - REJECT ALL BIDS FOR CONTRACT NO. 3461. Reject all bids. 5. Item removed from the Consent Calendar by Council Member Heffernan. 6. Item removed from the Consent Calendar by Council Member Heffernan. 7. Item removed from the Consent Calendar by a member of the audience. MISCELLANEOUS ACTIONS 8. Item removed from the Consent Calendar by a member of the audience. 9. Item removed from the Consent Calendar by a member of the audience. 10. Item removed from the Consent Calendar by a member of the audience. 11. MORNING CANYON (C -3711) - ARUNDO REMOVAL. 1) Determine Volume 56 - Page 1054 INDEX C -3656 Fire Station & Community Center/ Santa Ana Heights (38/100 -2004) C -3461 (38/100 -2004) C -3711 City of Newport Beach Regular Meeting July 13, 2004 that the project is exempt from environmental review pursuant to Section 15304 of the CEQA Implementation Guidelines, and 2) direct staff to proceed with the Arundo Removal project in Morning Canyon north of East Coast Highway. 12. Item removed from the Consent Calendar by Council Member Heffernan. 13. Item removed from the Consent Calendar by a member of the audience.. 14. REVISIONS TO APPEAL AND CALL FOR REVIEW PROCEDURES - CODE AMENDMENT NO. 2004 -002 (PA2004 -028) (contd. from 618104 & 6122104). Continue to August 10, 2004. Motion by Council Member Bromberg to approve the Consent Calendar, except for those items removed (1, 5, 6, 7, 8, 9, 10, 12 and 13). The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 22. MESA -BIRCH PARCELS IN SANTA ANA HEIGHTS [item taken out of order]. Assistant City Manager Kiff stated that it would cost the City approximately $6,000 per year to maintain the proposed park. He displayed an aerial photo of the area, which showed where the two parcels under consideration are located. Roger Summers, Chairman of the Project Advisory Committee (PAC) for Santa Ana Heights, stated that he spoke to Supervisor Silva who expressed his desire to support the proposed park if the City Council approves the recommended action. He noted those in attendance at the current meeting in support of the action. Council Member Webb complimented the idea and suggested that possibly the grade of the park should be lowered. Motion by Council Member Bromberg to authorize the Mayor to send a letter to Supervisor Silva advocating that the Orange County Development Agency (OCDA) use two parcels in Santa Ana Heights for passive parkland and stating the City's willingness to maintain the park if the OCDA plans and constructs it. Council Member Nichols confirmed that the size of the parcels would be appropriate for a passive park. Council Member Heffernan asked if the property could be sold, and the Volume 56 - Page 1055 INDEX Morning Canyor,� Arundo Removal (38/100 -2004) (100 -2004) (100 -2004) • E 11 City of Newport Beach Regular Meeting July 13, 2004 money transferred to the City so that it could be used to purchase the sites across the street for a fire station. City Manager Bludau stated that Supervisor Silva has stated that he will not take the fire station agreement back to the Board of Supervisors for reconsideration, because he isn't sure that enough affirmative votes would be received. Jim Hildreth referred to the aerial photo on display and asked what the two unlabeled parcels were being used for. He asked if the City would lose revenue if parcels in the area were developed, and disagreed with the grade being lowered because it could make driving conditions hazardous. Lastly, he expressed his support for parks, in general, but stated that the matter should be looked into further. Barbara Venezia, PAC Secretary, stated that she is also in charge of the budget and new projects committee. She referred to the aerial photo on display and stated that parcels 20412, 20402 and 20392 would be developed as office buildings, and that the County has promised the two parcels under discussion to the developers for extra parking. Ms. Venezia stated that the Santa Ana Heights residents disagree with this, because the two parcels act as the entrance to their community. Further, she stated that the County is planning to sell the parcels to the developers at a reduced price, which she also disagreed with. Ms. Venezia stated that the community has fought the issue for a long time and is looking to the City Council to support their cause. • The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Q�Z M Abstain: None Absent: Adams J. PUBLIC HEARINGS 15, JOSH SLOCUM'S DINNER AND NO. 2003 -036 (PA2003 -220) — 2601 from 6122104). SUPPER CLUB - USE PERMIT WEST COAST HIGHWAY (contd. Motion by Council Member Webb to continue the item to August 24, 2004 at the request of the appellant. Jim Hildreth stated that when the City Council addresses this item, they should not take their previous dealings with the owner of Josh Slocum's, Dennis Rodman, into consideration. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway • Noes: None Abstain: None Volume 56 - Page 1056 INDEX (100 -2004) City of Newport Beach Regular Meeting July 13, 2004 Absent: Adams 16. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE TO GOODWIN ENTERPRISES, INC. City Manager Bludau reported that, like any other non - exclusive solid waste franchise, Goodwin Enterprises, Inc. will have to meet the requirements of the franchise agreement. Mayor Ridgeway opened the public hearing. Jim Hildreth asked how many solid waste collection franchises are needed in the City, expressing his dissatisfaction that another one is being considered. He mentioned several problems with the current contractors and stated that the City should look into the issues. Hearing no further testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member Webb to adopt Ordinance No. 2004 -14 granting a Non - exclusive Solid Waste Franchise to Goodwin Enterprises, Inc. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 17. MARINER'S MILE LANDSCAPE STANDARDS, MUNICIPAL CODE SECTION 20.42.050(M), CODE AMENDMENT NO. 2004 -006 (PA 2004 -104) — AMENDS THE STANDARDS TO REDUCE THE NUMBER OF PALM TREES REQUIRED AND PROVIDE FLEXIBILITY IN THE SPECIES OF HEDGES REQUIRED ACROSS THE FRONTAGE OF PROPERTIES ON COAST HIGHWAY BETWEEN NEWPORT BOULEVARD AND THE BACK BAY BRIDGE. Assistant City Manager Wood reported that staff has begun to work with developers on the landscape standards for Mariner's Mile and in the process has discovered that some adjustments to the standards need to be made. Mayor Ridgeway opened the public hearing. Jim Hildreth stated that changes to the standards are not needed. Hearing no further testimony, Mayor Ridgeway closed the public hearing. Motion by Council Member Webb to introduce Ordinance No. 2004 -15 approving Code Amendment No. 2004 -006 and pass to second reading on Volume 56 - Page 1057 11 Ord. 2004 -14 Non - Exclusive Solid Waste Collection Franchise (421100 -2004) (100 -2004) • • City of Newport Beach Regular Meeting July 13, 2004 • July 27, 2004. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 18. MARINAPARK RESORT & COMMUNITY PLAN — FINAL ENVIRONMENTAL IMPACT REPORT (PA 2003 -218); FISCAL IMPACT ANALYSIS — 1700 WEST BALBOA BOULEVARD. Mayor Ridgeway reminded everyone that the issue before the City Council at the current meeting is the certification of the Environmental Impact Report (EIR). Assistant City Manager Wood added that the matter will be discussed again at the City Council meeting of July 27, 2004, which is also when the actions to consider whether or not to certify the EIR as being in compliance with the California Environmental Quality Act (CEQA) and whether or not to place the project on the ballot would take place. City Attorney Burnham noted that it would also be appropriate to take testimony on the draft Fiscal Impact Report. At the request of Council Member Heffernan, City Attorney Burnham • explained that in March of 2003, the City Council unanimously approved an agreement with Sutherland Talla Hospitality. A key provision of the agreement called for the City Council to place the Marinapark project general plan amendment on the ballot in November of 2004, if the EIR was certified by the City Council. Council Member Heffernan confirmed that certifying the EIR is the only remaining discretionary act that would take place by the City Council prior to the issue being on the ballot in November. City Attorney Burnham referred to a memorandum that he circulated earlier and stated that the key to certifying the EIR is determining if it contains information adequate to inform the decision makers and results in informed public participation. Secondly, his memorandum addressed recirculation of the draft EIR and specified that recirculation needs to be done only if significant new information is added to the EIR after the Notice of Completion is filed. In response to Council Member Heffernan's question, City Attorney Burnham stated that July 271h is the date of the last regular City Council meeting prior to the deadline for submitting a ballot measure and consolidating it with the election in November. Council Member Bromberg confirmed with City Attorney Burnham that certifying the EIR does not mean that the project itself is being approved. Council Member Webb asked when the City Council would actually approve or modify the site plan. City Attorney Burnham stated that adjustments to the site plan could be made at any time prior to the lease • being signed. If the modifications substantially changed the project, the draft EIR would have to be recirculated. Assistant City Manager Wood Volume 56 - Page 1058 INDEX C -3389 Marinapark Resort & Community Plan (38/100 -2004) City of Newport Beach Regular Meeting July 13, 2004 INDEX added that there is also a proposed planned community development plan . for the property, which would also require public hearings and another opportunity for public input. In response to Council Member Nichols' question, City Attorney Burnham stated that there are provisions in the City Charter relative to the site and that he would check on the details. Council Member Nichols recalled that it specifies that the parcel must be used for recreation unless there is a vote of the people. City Attorney Burnham referred to Section 1402 of the Charter, which states that, "the City Council shall have the authority to lease City -owned property, including tide and submerged lands so long as the lease is limited to the term permitted by State law ". Additionally, it states that, "there shall be reserved forever to the people the public use of a strip of bay front land above mean high tide not less than eighty -five feet in depth of the city -owned water front property ". City Attorney Burnham stated the line of mean high tide has not been established for the site. Council Member Nichols confirmed with City Attorney Burnham that the lease that is being contemplated would meet the requirements of the Charter. Mayor Ridgeway opened the public hearing. Jim Hildreth asked why the median tide level hadn't been established yet. Mike Johnson stated that the site plan includes the American Legion property and that Council Member Bromberg was quoted in the Daily • Pilot as stating that the American Legion would be rebuilt. Mr. Johnson asked for a clarification. City Attorney Burnham stated that the City recently entered into a 25 -year lease, with a 25 -year option, with the American Legion. The American Legion is not a part of the Marinapark Resort & Community Plan project, but the lease between the City and Marinapark does contemplate a renovation of the American Legion facilities. Assistant City Manager Wood added that the map that was attached to the public hearing notice was from the County and it did appear that the American Legion was a part of the Marinapark parcel. She also confirmed that the American Legion is not a part of the project. Dolores Otting distributed copies of Section 1402 of the Charter and stated that the Notice of Preparation (NOP) also referenced the public use of the site, but that the EIR did not address this issue. She stated that giving the property to Marinapark LLC should require a Charter amendment. Additionally, Ms. Otting expressed her dissatisfaction that "Fiscal Impact Analysis" was added to the title of the item just the Friday prior to the current meeting and that no staff report was provided. City Attorney Burnham corrected Ms. Otting by stating that the City Council has never said that they are going to give the property to Sutherland Talla, that the term of any lease would not be in perpetuity and that the lease will have to be consistent with the provisions of the Charter. He added that this EIR has probably undergone closer scrutiny than any other document he is familiar with. . Volume 56 - Page 1059 is City of Newport Beach Regular Meeting July 13, 2004 ufi�T9:7 Council Member Heffernan referred to Section 1402 of the Charter, which states that, "the City Council shall have the authority to lease City -owned property, including tide and submerged lands so long as the lease is limited to the term permitted by State law ". City Attorney Burnham explained that State law allows the lease of tidelands for up to 66 years, but the City's tidelands grant contains a 50 -year limitation. He added that this has been confirmed with the State Lands Commission. Council Member Rosansky confirmed with City Attorney Burnham that the site could be leased as long as the land specified in the Charter is accessible to the public and reserved for public use. Council Member Webb asked where this public land is located. City Attorney Burnham stated that the 85 -foot strip is measured from a line that has not been established yet, but it is assumed, for the sake of discussion, that the current line of development probably represents the upland limit of the 85 feet. Council Member Bromberg confirmed with City Attorney Burnham that if the EIR is certified and the project is approved by the voters, the developer will still have to secure the necessary permits required of any project. Assistant City Manager Wood stated that a draft of the Fiscal Impact Analysis is included in the staff report. She stated that the analysis is a • requirement of the agreement with Sutherland Talla and that Applied Development Economics was hired to complete it. She stated that the analysis determined that the existing uses on the site generate a net positive revenue to the City of $696,000 and the project is projected to generate a net positive revenue of $3.5 million. Joe O'Hara expressed his dissatisfaction with the planning reflected in the proposal and emphasized that the commercial development of the largest remaining undeveloped bayfront property on the peninsula is being considered. He stated that the project is seriously flawed from an economic standpoint and speculated that Marinapark isn't likely to ever show an operating profit. He discussed the nature of selling timeshares. He suggested that consideration of a hotel project be set aside, and a creative and noncommercial development of the site be encouraged in a manner that will benefit the community. Assistant City Manager Wood stated that the process to decide what to do with the site when the mobilehome park would close did begin years ago. An economic study concluded that a hotel use would provide the greatest economic return to the City. Prior to sending out a Request for Proposals (RFP), the City requested that the State Lands Commission provide a decision on the tidelands boundary. In response to a hotel proposal presented by Sutherland Talla, an RFP was issued. Eight responses were received and analyzed, and the proposal from Sutherland Talla was selected. City Attorney Burnham added that the first exclusive • negotiating agreement with Sutherland Talla was entered into in 2000 or 2001. The agreement in March of 2003 was a refinement and Volume 56 - Page 1060 City of Newport Beach Regular Meeting July 13, 2004 INDEX modification of the original agreement. Council Member Heffernan stated that the effect of timeshare sales on the Fiscal Impact Analysis has not been resolved, but the City Council is aware of the issue and it will be discussed as a part of the lease proposal during Closed Session. Tom Billings, Protect Your Parks, stated that Protect Your Parks is dedicated to preserving Newport's public parklands and open space. He stated that during the City's general plan visioning process, a research poll showed that 70% of the residents and businesses in Newport Beach did not want a resort at either Newport Dunes or Marinapark. Mr. Billings referred to the list that he sent to the council members outlining ten items that Protect Your Parks objects to in the EIR. He stated that the EIR was rushed and biased, and that more time should be spent to consider the objections that have been raised. He stated that leaving the site as a park or developing it as an aquatic center would be the more environmentally superior alternative. Mr. Billings also stated that the proposed parking plan leaves the timeshare hotel seriously under parked. He also noted that there's no clear demarcation line to establish the tideland boundary. City Attorney Burnham stated that there is an opinion from the Attorney General that suggests that timeshares would be permitted depending upon their duration, but that the State Lands Commission has not made a determination on whether timeshares or fractional ownerships would be consistent with the tidelands trust. Mr. Billings stated that mitigation issues also need further clarification and the visual impacts can't be ascertained until all views show building elevations for the site. Assistant City Manager Wood stated that the EIR process has not been rushed, that a large number of comments were received on the draft EIR, all comments were responded to, revisions were made, public hearings were held and it is felt that the EIR document was given a thorough environmental review. Assistant City Manager Wood also pointed out that the Planning Commission did determine that the reduced intensity alternative, or the smaller hotel, would be the environmentally superior alternative among the alternatives presented. She noted, however, that this did not change the conclusion of the draft EIR that the project would have less environmental impact than any of the other alternatives, except the one that involved no development. Council Member Webb asked if the Planning Commission considered the marine use as being the environmentally superior alternative. Assistant City Manager Wood recalled that they did a straw vote on the issue and the vote was 5 to 2, with the main issue being the parking lot and how it would be treated in terms of traffic generation. Assistant City Manager Wood continued with her response to the comments made by Mr. Billings by stating that the draft EIR does include several view simulations. With regard to the mitigation measures and not having dates for when they must be completed, she stated that they must be completed prior to the issuance of the necessary Volume 56 - Page 1061 • • • City of Newport Beach Regular Meeting July 13, 2004 INDEX Permits and that it is the typical way of handling mitigation measures. Council Member Nichols asked if the design of the hotel is fixed or if the vote by the people would only consider the general plan amendment that would change the zoning and allow a hotel up to a certain size on the property. Assistant City Manager Wood stated that the vote by the people would be on the general plan amendment for both the land use and recreation/open space elements. She added that the general plan provides a land use designation and an intensity of development that would be allowed on the site. The planned community development plan would have the detailed development regulations. Council Member Heffernan asked if the City Council needs to approve the transfer of the exclusive negotiation rights as a part of the Fiscal Impact Report, or if it's a separate issue. City Attorney Burnham stated that it's a separate issue, but that the City Council does have to give its consent to an assignment of the rights from the original contracting party to the new limited liability company. Council Member Heffernan asked if the consent needs to be a part of the City Council's approvals on July 27th or if it would be done later. City Attorney Burnham stated that it could be done later and does not need to be done for purposes of submitting the matter to the voters. He added, however, that the City Council could do it on July 27th. Council Member Heffernan asked if the Fiscal Impact Report could give an opinion as to the strength and viability of the tenant to conform with the tenant obligations under the lease. Assistant City • Manager Wood stated that the Fiscal Impact Analysis only looks at the revenues that the project will generate and the costs to provide City services to that project. Council Member Heffernan asked how reliable the revenue estimates would be if the viability of the tenant is unknown. Mayor Ridgeway agreed and requested that full disclosure be provided at the City Council meeting on July 271h. He stated that part of the approval will be a consent to assignment. City Attorney Burnham stated that background information on the people to whom the City Council might assign the rights to will be given, as well as information on what the people will potentially construct and operate. He stated that you never know if a Fiscal Impact Report will bear out, but the information should provide a level of comfort that the people have every intention of meeting the objectives. Council Member Heffernan stated that in fairness to the voters, this type of information should be provided. He stated that the revenue estimates and who's going to generate the revenue are related. Dr. Patricia Frostholm noted that there are no women on the City Council. She stated that women provide a different viewpoint and understand how precious children are. She stated that the site under consideration is called "Mothers Beach" and that it would be better to develop the surrounding area into a community center, instead of a hotel. She stated that additional hotels are not needed in the area and aren't • compatible with public uses. Volume 56 - Page 1062 City of Newport Beach Regular Meeting July 13, 2004 INDEX Marie O'Hora stated that traffic problems are not dealt with completely in the EIR. Additionally, she noted that the site is near a grammar school and two churches. She stated that a park would be a more appropriate use of the site. Steven Sutherland, proponent for the project, stated that the project has probably received more public scrutiny that any development project that's been before the City Council. He stated that he has worked with the community and that the project has changed quite a bit due to this, which has made it a better project. Mr. Sutherland stated that the residents in the City know that the site is an important piece of property and they want to have the final say on it. He stated that the project will be a positive for the community. Council Member Nichols asked if the fiscal study is representative of what is expected to occur on the site. Mr. Sutherland responded in the affirmative. Council Member Nichols stated that it's helpful to know that Mr. Sutherland stands behind the study. Council Member Heffernan stated that the current composition of the tenant is a relative topic. He asked Mr. Sutherland to address this issue. Mr. Sutherland stated that he will provide information and full disclosure on the partners to the City Attorney's office. He added that he is anticipating that the hotel will be operated by Regent International Hotels. • Philip Arst stated that final conclusions cannot be drawn from the Fiscal Impact Report without having a lease agreement available. He also questioned the rating of the proposed hotel as Five Star when there would only be a ratio of one employee per room. He stated that it is unknown if Regent International will operate the hotel and no major operator has confirmed that the economics will work. Additionally, he stated that there is no information on the tidelands demarcation line, so it is unknown how many timeshares can be constructed. Finally, Mr. Arst stated that the Fiscal Impact Report compared the hotel to what is currently on the site. He felt that the City would be better served to leave the mobile home park on the site and receive a guaranteed source of revenue, which has been calculated to be $1.7 million annually for longer term leases. Mr. Arst stated that the preferred alternative is a park and it's difficult to assign a value to serving the public. In conclusion, he stated that the Fiscal Impact Report is very questionable. Mayor Ridgeway stated that he has never heard that the mobile home park could generate $1.7 million annually. Council Member Heffernan asked if a proposal from the existing tenants at the mobile home park had been received. Assistant City Manager Wood stated that she was unaware of anything being submitted in writing. Mayor Ridgeway stated that he did recall that they made a proposal, but it was to raise their long -term lease payments enough to generate just • Volume 56 - Page 1063 • City of Newport Beach Regular Meeting July 13, 2004 over $1 million per year. INDEX Council Member Nichols asked if the proposal included the ability to sell their trailers. Mayor Ridgeway responded in the affirmative. City Manager Bludau noted that $1.7 million would calculate to $28,000 per year per mobile home, or approximately $1,200 per month. Council Member Heffernan asked if the Parks, Beaches & Recreation Commission ever addressed a park at the site. Assistant City Manager Wood stated that the Parks, Beaches & Recreation Commission was one of the parties that submitted a proposal in response to the RFP. They submitted a proposal for park use on the site, but it did not include cost or revenue analyses. In response to Mr. Arst's comments, Assistant City Manager Wood stated that it needs to be remembered that if the lease rents went up at the mobile home park, the City would still not receive Transient Occupancy Tax (TOT) revenue from that use. She noted that the hotel is estimated to generate over $1 million in TOT annually. Additionally, she stated that the Fiscal Impact Analysis assumed the maximum of 12 timeshares, which would be a worst case analysis. Mayor Ridgeway stated that the objective of the City Council is for a • reasonable financial return on the property, which is inconsistent with the park proposal. Stewart Berkshire, Marinapark resident, stated that Mr. Sutherland's proposal was not considered responsive by the contractor that the City hired to review the proposals. Later, however, it was determined by the City that his proposal was the only one that was responsive and he became the City's agent to determine what project would be developed. Mr. Berkshire stated that the Marinapark residents had their own studies conducted on the going rental rates for mobile home parks on the bay, and the $1.7 million figure is justifiable. The dependability of the revenue from the hotel is questionable. Lastly, Mr. Berkshire stated that the viewpoints of those in opposition to the project should be taken into consideration. Assistant City Manager Wood stated that Mr. Sutherland was not designated as the City's agent, he was selected as the developer to develop the project that he proposed. Madelene Arakelian stated that the traffic issue in the EIR is inadequate and selecting a hotel as the superior project for the site is also inadequate. She stated that traffic is terrible on the peninsula and that this should be looked into before the EIR is certified, as well as the superiority of that site as open land. Dr. Jan Vandersloot expressed his support for including total open space as an alternative for the site. He stated that this would be consistent • with the underlying designation of recreation and environmental open space. He asked the City Council to consider what the decision on the Volume 56 - Page 1064 City of Newport Beach Regular Meeting July 13, 2004 property will mean for the future. Dr. Vandersloot stated that the property is the best kept secret in Newport Beach and a beautiful spot, and should not be sold to a private developer. He stated that there is no need to sell the City's precious assets for TOT revenue, and that an alternative for open space should be included in the EIR. Hearing no further testimony, Mayor Ridgeway closed the public hearing. Motion-by Council Member Bromberg to continue the public hearing to July 27, 2004. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 19. ZONING AMENDMENTIRECOVERY FACILITIES. City Attorney Burnham introduced Jeff Goldfarb, special counsel retained by the City. City Attorney Burnham reported that the City Council initiated an amendment to the zoning code to address the City's regulations on group homes, or recovery facilities. He stated that the intent of the City Council was to comply with Federal and State laws, while insuring that the City's regulations preserved the integrity of the zoning code and residential neighborhoods. He stated that the proposed ordinance adds some definitions and clarifies others, specifies that certain uses are permitted as a matter of right in all residential zones, requires a Federal exception permit for certain uses, and provides special provisions for buildings used in concert with one another. Mayor Ridgeway stated that it's a difficult issue for the City to legislate because of the Federal laws that exist. City Attorney Burnham added that the Planning Commission, by a vote of 6 to 1, recommended that the City Council adopt the proposed ordinance. He further clarified that State law specifies that recovery facilities serving six or fewer occupants that have State licenses are to be considered by the City as a single family residential use. Those that don't have State licenses would also be required to be treated as single family residential uses by the City because Federal law prohibits discrimination against similar uses. Council Member Webb noted that the minutes of the Planning Commission are included in the staff report and that the vote was 5 to 1 because one of the commissioners was absent. Council Member Nichols stated that the matter needs to be addressed thoroughly and that there are still some remaining issues. For example, he stated that it isn't clear if the employees of the recovery facilities are included in the occupant count. Secondly, Council Member Nichols stated that the requirement for a business license and insurance should Volume 56 - Page 1065 INDEX (100 -2004) 11 City of Newport Beach Regular Meeting July 13, 2004 • be considered. And, lastly, he stated that recovery facilities could be considered commercial operations and possibly not allowed in residential neighborhoods. Mr. Goldfarb stated that the State's Health & Safety Code stipulates that the occupant count does not include the licensee, members of the licensee's family or persons employed as staff. In response to the second issue raised by Council Member Nichols, Mr. Goldfarb stated that a business license and insurance cannot be required because recovery facilities aren't considered businesses and doing so would be considered discrimination. City Attorney Burnham added that since the City has no regulatory authority and no permits would be issued, there would be no basis for City liability. In response to the last question, Mr. Goldfarb stated that "campusing" is a consideration when determining whether to issue a Federal exception permit, which is typically only applicable to the "residential care, general" category, or those facilities having seven or more occupants. Council Member Nichols asked if there were any restrictions to "campuses ". City Attorney Burnham stated that the proposed ordinance would require a Federal exception permit for group homes serving seven or more occupants in the R -1.5, R -2 and MFR zones. Mayor Ridgeway opened the public hearing. Denise Oberman stated that she is speaking on behalf of herself, Linda Orozco and a group of other fulltime homeowners. She stated that they also retained expert legal counsel to do research and provide a position • that would support the City's general plan and land uses and related community interests, while at the same time provide required accommodations under State and Federal law as may be applicable. She stated that several of the interpretations differ from those of Mr. Goldfarb. Ms. Oberman provided a handout outlining her comments and expressed opposition to the proposed ordinance. She stated that it is overly simplistic to propose that there are certain residential uses that can accommodate recovery facilities. She stated that the peninsula is a complex area and the only way to reasonably regulate nonconforming uses is to go through a rigorous conditional use permitting process. Lastly, she asked if an audit had been conducted, as requested by the City Council and the Planning Commission. City Attorney Burnham stated that he did meet with Mr. Cottriel, the legal counsel for the group, and that some of his suggestions were incorporated into the proposed ordinance. Mr. Goldfarb confirmed that he did not feel that a conditional use permit could be required for seven or more occupants. Council Member Heffernan asked for the status of the audit. Mr. Goldfarb stated that the results of an audit will have no impact on what the City can and cannot approve. Council Member Heffernan asked if the extent of the problem is known. City Attorney Burnham stated that such an audit has not been done and he wasn't sure how one could be done. Council Member Heffernan asked if there was a list of recovery facilities licensed by the State. City Attorney Burnham responded in the • affirmative and stated that the City would also have records of those Volume 56 - Page 1066 i�l IT�►:1 City of Newport Beach Regular Meeting July 13, 2004 INDEX facilities that have been inspected by the Fire Department. Mayor Ridgeway asked if the fire inspections and State licenses were public documents. City Attorney Burnham stated that he didn't know if there were issues related to such disclosures, but that there are a number of laws pertaining to the disclosure of people that occupy group homes and recovery facilities. He stated that his focus has been on the zoning code regulations of the facilities and that he hasn't checked on what lists might be available at the State level. Mr. Goldfarb added that the obligation to obtain a State license has little to do with the size of the facility and more to do with the way the facility functions. Facilities that do not provide services, as defined under the Health & Safety Code, are not required to obtain a State license. Council Member Nichols stated that current City codes are not being followed. He explained that the Newport Coast Recovery facility in the Palms Apartments is required to obtain a use permit and has not done so. City Attorney Burnham stated that this is the fast time that the issue has been brought to his attention. Mayor Ridgeway stated that the City's code enforcement officers would need to be made aware of an issue for enforcement to take place. After a brief discussion about use permit requirements, City Attorney Burnham explained that under the proposed ordinance, a Federal exception permit would be required for facilities in the R -1.5, R -2 and MFR districts and "residential care, general" facilities would be prohibited in R -1 districts. Council Member Nichols asked if the Federal exception permit requires a hearing by the Planning Commission. City Attorney Burnham responded in the affirmative. Council Member Nichols asked why one hasn't taken place for the Newport Coast Recovery facility. City Attorney Burnham stated that no enforcement request has been received by his office from any City department relative to any recovery facility or group home at the Palms Apartments or anywhere else. Mayor Ridgeway requested that the records and the current facility at the Palms Apartments be inspected. Dolores Otting stated that Ms. Oberman's attorney did provide the City with a list of the facilities in Newport Beach. She stated that an audit should be done and that identities can be protected. Mr. Ridgeway agreed, but stated that the information would be difficult to obtain. Jim Hildreth stated that recovery is a hard thing to do. He also felt that the Palms Apartments probably has a problem, and the City needs to decide if it will allow such activity or not. Mr. Hildreth stated that if the recovery facilities don't provide revenue to the City, he can't understand why the City would allow them. Mike Newman, Newport Coast Recovery partner, stated that Newport Volume 56 - Page 1067 • • • City of Newport Beach Regular Meeting July 13, 2004 INDEX Coast Recovery has never occupied the Palms Apartments. He stated that Newport Coast Recovery is located on Balboa Boulevard and has operated as a residential treatment facility for the past year- He stated that they are State - licensed, have a City business license, and have been inspected by the Fire Department, which is part of the State's approval process. He stated that he was alarmed to hear the suggestion that recovery facilities should move elsewhere if they don't provide revenue to the City. Ivlr. Newman stated that the facilities deal with saving people's lives. Mayor Ridgeway asked what services Newport Coast Recovery provides that require it to obtain a license. Council Member Nichols asked if Newport Coast Recovery carries insurance. Mr. Newman stated that the State requires that they carry professional and personal liability insurance, and that it is a component of the licensing process. Council Member Nichols stated that Newport Coast Recovery appears to be run responsibly and could set the example for other such businesses. Chris Boge referred to the staff report, and asked how the proposed ordinance coincides with the Fair Housing Act Amendments of 1988. He explained that the facilities labeled "residential care, general" in the proposed ordinance will be greatly constrained over time, and the process to make necessary routine improvements will be long and tedious. He • stated that the proposed ordinance is in direct violation and contradiction of the Fair Housing Act Amendments of 1988, is a manipulation of Federal law, and would put handicapped people and those suffering from drug addiction at a severe disadvantage for receiving help. Mr. Goldberg stated that it is not felt that the proposed ordinance discriminates against those with handicaps or treats them any differently than other residential uses. The Federal exception permit requirement for groups of seven or more does not discriminate against those in recovery. Steve Markasiam stated that if the proposed ordinance does not discriminate against recovery groups, it should also be applied to the summer rental units that are filled with teenagers who drink every night. Mayor Ridgeway stated that when a person has an alcoholic drink in their hand, they are no longer considered to be disabled or a recovering alcoholic. Mr. Goldfarb stated that the City allows short -term rental occupancies in certain zones, but that they are subject to the same zoning requirements and the individuals must reside together as a single housekeeping unit. Council Member Nichols stated that the owners of short -term rentals do have requirements that have to be met. Richard Prone, Newport Coast Recovery Executive Director, stated that • there are plenty of statutes in place that regulate behavior, and that the Volume 56 - Page 1068 City of Newport Beach Regular Meeting July 13, 2004 INDEX solution is to enforce the laws that already exist. Mr. Prone stated that Newport Coast Recovery has made a legitimate effort to comply with all requirements and be responsive to the neighbors. Iu response to Mayor Ridgeway's earlier question, Mr. Prone stated that the services provided by Newport Coast Recovery include the elements of a 12 -step based program. Bill Greenwalt stated that the proposed ordinance does discriminate against recovery facilities. He specifically referred to the requirement for the Federal exception permit and the lack of a definition for "transiencey ". He stated that the proposed ordinance defines "transiencey" as a household that doesn't change more than 50% of its members in any given calendar year. Mr. Greenwalt explained that an effective recovery facility has occupants that recover and move back into mainstream society. He also questioned the definition of "single housekeeping unit" and asked if a "residential care, general" facility could ever qualify for a Federal exception permit. Mr. Goldfarb stated that the proposed ordinance does not discriminate against those in recovery because it allows recovery facilities with six or fewer persons to operate without a permit in any residential zone in the City. If there are seven or more persons, then there is the requirement for the Federal exception permit, but recovery does not require that seven or more persons participate. Mr. Greenwalt disagreed and stated that seven or more can be effective and might be more economically viable. Pau] Chiavatti, Orange County Treatment Centers, suggested that the City contact the City of Anaheim and find out why it lost two lawsuits twelve years ago involving sober living homes. He stated that, as a result of losing the lawsuits, the City of Anaheim has remained adamant that they will not regulate sober living homes. Frank McGeoy stated that he's been a recovered alcoholic since November 7, 1982. He stated that he's individually worked with over 250 men and believes that it is discriminatory to have a transiencey requirement. He explained that transition is desired in a recovery facility and that success can be reached in as few as 30 days. He added that another type of transition is the alcoholic who drinks and is no longer allowed in the recovery facility. Jon Stearman, Narconon, provided a handout from Narconon's attorney. He asked how the term "Federal exception permit" came about and what it means. Additionally, he stated that the new "residential care, general" category violates Federal and State laws. He also requested that the transiencey issue be addressed and an explanation as to why it is not discriminatory be provided. Mr. Stearman asked how the traffic congestion and trash requirements are currently applied and enforced in residential zones. He referred to businesses that operate out of homes. Lastly, Mr. Stearman asked how the definition of "campus" is within Federal laws. He stated that Narconon will support the City's decision as long as it is in compliance with Federal and State laws. Volume 56 - Page 1069 • r L J E • City of Newport Beach Regular Meeting July 13, 2004 Brett Countryman stated that he disagrees with the transiencey requirement and explained that an insurance company will not fund an addict that is in a facility for a full year. He asked that this also be considered. Hearing no further testimony, Mayor Ridgeway closed the public hearing. Mayor Ridgeway asked for an explanation of the transiencey requirement. City Attorney Burnham suggested that the language in Section 20.91.035 (C) (2) addressing the transiencey criteria be deleted. Specifically, the language after, "Single Housekeeping Unit" would be deleted. In regard to the campusing issue, Mr. Goldfarb stated that the City is allowed to establish regulations that prohibit campusing. He explained that campusing ceases to integrate people in recovery into the community. Motion by Council Member Webb to introduce Ordinance No. 2004- 16, as amended by the City Attorney, amending the Zoning Code and pass to second reading on July 27, 2004. Council Member Nichols suggested that the item be continued. He explained that information has been received at the current meeting that would help to create an ordinance that will work. He stated that the facilities that comply with the law should not be discriminated against. Additionally, he requested that the insurance issue be addressed. Council Member Bromberg agreed that the input received at the current meeting was good. He felt that the motion could be approved, since the issue will return for second reading on July 27, 2004. Mayor Ridgeway stated that opposition from the recovery facilities shows him that the City is on the right track. He explained that the City is responsible for protecting neighborhoods. He felt that the majority of the recovery facilities have operated in a responsible manner, and that the amendments to the zoning code are reasonable, provide the City with as much regulation as is allowed by Federal and State laws, and address a problem in the community. Council Member Heffernan stated that few people spoke at the current meeting in favor of the proposed ordinance. He felt that the changes could expose the City to liability. Secondly, he felt that an audit should be done to determine the extent of the problem. The motion carried by the following roll call vote: Ayes: Rosansky, Bromberg, Webb, Mayor Ridgeway Noes: Heffernan, Nichols Abstain: None Absent: Adams Mayor Ridgeway recessed the meeting at 10:30 p.rn- and reconvened the meeting at 10:45 p.m. with all Council Members present except Mayor Pro Tem Volume 56 - Page 1070 INDEX City of Newport Beach Regular Meeting July 13, 2004 Adams. K. PUBLIC COMMENTS Dolores Otting expressed her disappointment in the announcement by Mayor Pro Tern Adams that he would be resigning from the City Council. She asked how the seat would be filled. Secondly, Ms. Otting suggested that the issues involving the Balboa Bay Club be addressed by the City Council, such as the Balboa Bay Club's financial situation, public access and other information. Laura Dietz announced that a kickoff for the Corona del Mar Centennial would be taking place on July 15, 2004, at the Sherman Gardens. She stated that historical photos of Corona del Mar would be on display at the party that show how the quality of life has continued to improve in the area. She displayed a sample photo and invited everyone to attend the kickoff. Jim Hildreth continued with his discussion about the City's website by referring to the fifth paragraph. He stated that it mentions taking a pier down, but stated that there are no piers in the Grand Canal. He displayed two photos showing an access structure and the City's ladder. He stated that the access structure appears to be safer, is made up of a platform and steps, and should be permitted. L. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Motion by Mayor Ridgeway to waive oral reports on committee activities. The motion carried by acclamation. M. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT 20. PLANNING COMMISSION AGENDA FOR JULY 8, 2004. Assistant City Manager Wood stated that she reported earlier in the current meeting on the Planning Commission's action on the Marinapark Environmental Impact Report (EIR). The only other item addressed by the Planning Commission at their meeting on July 8, 2004, was a minor amendment to the use permit for the LaFogata Restaurant. Council Member Nichols stated that the LaFogata Restaurant is located in a shopping center, and that they want to expand their seating by eight. He asked if they would be providing additional parking. Assistant City Manager Wood stated that the additional seating is in the outdoor patio area, so the requirements fall under the CiWs outdoor dining ordinance. Senior Planner Campbell confirmed that the parking requirements for the restaurant did not change and added that it was because the restaurant was reclassified from a takeout restaurant to a small scale restaurant, which has less parking demand as defined by City code. N. CURRENT BUSINESS Volume 56 - Page 1071 INDEX (100.2004) • Cl • City of Newport Beach Regular Meeting July 13, 2004 21. MASTER FEE RESOLUTION. Motion by Council Member Webb to adopt Resolution No. 2004 -60 updating the Master Fee Schedule. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams O. ITEMS REMOVED FROM THE CONSENT CALENDAR 12. MEASURE S GUIDELINES — MINOR AMENDMENT [item taken out of order]. In response to the proposed language presented by Philip Arst, City Attorney Burnham stated that he is agreement. Additionally, he suggested that the effective date for the amendments be set for November 3, 2004. Motion by Council Member Brombere to adopt the proposed • amendment to the Measure S Guidelines, as modified. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams Mayor Ridgeway announced that public comments on items removed from the consent calendar will be limited to one minute per speaker per item at the current meeting. 1. MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF JUNE 22, 2004. Jim Hildreth referred to page 1025 of the regular meeting minutes and stated that his comments are recorded incorrectly. He stated that he did not say that piers are not allowed in the Grand Canal, he said that there are not piers in the Grand Canal. On page 1028, he stated that he never made those comments about Council Policy H -1. Motion by Council Member Webb to waive reading of subject minutes, approve as written and order filed. • The motion carried by the following roll call vote: Volume 56 - Page 1072 INDEX (100 -2004) (100 -2004) City of Newport Beach Regular Meeting July 13, 2004 INDEX Volume 56 -Page 1073 - Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 5. CONTRACT RENEWAL WITH LDM ASSOCIATES FOR C -3489 ADMINISTRATION OF THE COMMUNITY DEVELOPMENT CDBG Program BLOCK GRANT PROGRAM FOR FISCAL YEARS 2003 -2004 & FY 2003 -2004 & 2004 -2005. FY 2004 -2005 (38/100 -2004) Council Member Heffernan asked why it costs $87,000 to administer a program that's $425,000. Program Administrator Trimble stated that the City is allowed to spend a maximum of $87,400, but that the actual contract will be for $54,000. He stated that this covers the administration of the block grant, as well as housing monitoring and other related requirements. Program Administrator Trimble added that an additional $18,000 would be spent in the upcoming year for the five - year consolidated plan preparation. In response to Council Member Heffernan's question, Program Administrator Trimble stated that the reports are sent to Washington D. C., which is also where the money comes from. Motion by Council Member Webb to approve the proposed contract renewal with LDM Associates. • The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 6. PROFESSIONAL SERVICES AGREEMENT TO PREPARE A C -3712 MITIGATED NEGATIVE DECLARATION FOR A PROPOSED Shopping SHOPPING CENTER PROJECT LOCATED NORTHWEST OF THE Center/ INTERSECTION OF WEST COAST HIGHWAY AND DOVER West Coast Hwy. DRIVE (PA2004 -141). & Dover Drive (38/100 -2004) Council Member Heffernan stated that his question has already been answered. Motion by Council Member Heffernan to approve a Professional Services Agreement with RBF Consulting of Irvine to prepare environmental documents at a cost not to exceed $61,540 and authorize the City Manager to sign the agreement. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor . Volume 56 -Page 1073 • City of Newport Beach Regular Meeting July 13, 2004 Ridgeway Noes: None Abstain: None Absent: Adams PROFESSIONAL SERVICES AGREEMENT FOR PROJECT MANAGEMENT SERVICES AND PROFESSIONAL SERVICES AGREEMENT TO PREPARE AN ENVIRONMENTAL IMPACT REPORT FOR NEWPORT LEXUS PROJECT. Mayor Ridgeway announced that he would be recusing himself from voting on the item. Dolores Otting stated that she didn't understand the "time of performance" clause in the agreement. She additionally didn't understand what an "administrative draft" Environmental Impact Report (EIR) would be. Ms. Otting also questioned Task 5 and the need for team review, which she hadn't seen in previous documents, and Task 6, the circulation period. Motion by Council Member Webb to 1) approve a Professional Services Agreement with Hogle- Ireland, Inc. of Irvine, for project management and staff services at a not to exceed cost of $37,800; 2) approve a Professional Services Agreement with Environmental Services Associates, Inc. (ESA) of Los Angeles for professional • environmental services to prepare an Environmental Impact Report not to exceed cost of $115,000; and 3) authorize the City Manager to sign the agreements. City Attorney Burnham explained that an administrative draft is also known as a screen check and is common practice. The "time is of the essence" provision is also standard. Assistant City Manager Wood added that the circulation period is established by State law. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols Noes: None Abstain: Mayor Ridgeway Absent: Adams 8. LAW ENFORCEMENT BLOCK GRANT— CRIME PREVENTION. Jim Hildreth expressed his support for the block grant. Motion by Council Member Webb to accept continued funding of the Crime Prevention Program under the provisions of the United States Department of Justice Local Law Enforcement Block Grant 2003 LLBX- 0763. • The motion carried by the following roll call vote: Volume 56 - Page 1074 INDEX C -3713 Newport Lexus Project (38/100 -2004) (100 -2004) City of Newport Beach Regular Meeting July 13, 2004 Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 9. MARINE AVENUE STREETSCAPE IMPROVEMENTS — PRE- PURCHASE OF STREET LIGHT POLES AND FIXTURES, BENCHES AND LITTER RECEPTACLES. Jim Hildreth stated that he hoped that the work that is being planned received a great deal of input. He expressed his dissatisfaction with the work that has already been done and stated that the replacement of the trash receptacles is a waste of money. Motion by Council Member Bromberg to 1) determine that the project is exempt from environmental review pursuant to Section 15302 of the California Environmental Quality Act Implementing Guidelines; 2) authorize staff to proceed with the Marine Avenue Street Light Pole and Fixture Replacement Order for total not -to- exceed price of $34,154; and 3) authorize staff to proceed with the Marine Avenue Bench and Litter Receptacle order with D.M. Braun & Company for a not -to- exceed price of $74,688. The motion carried by the following roll call vote Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams 10. REQUEST FOR ADDITIONAL FUNDING FOR PROPOSED UNDERGROUND ASSESSMENT DISTRICT NO. 87 (BIG BALBOA ISLAND). Jim Hildreth stated that the money is for the Edison Company and they have already absconded with public money. He stated that the City shouldn't give them more money and the Edison Company should have already known how much they would need. Motion by Council Member Webb to authorize an advance from the General Fund in the amount of $371,338 to Assessment District No. 87, Account No. 74087 -9810 for electrical design (05BA -001). The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams Volume 56 - Page 1075 INDEX C -3632 Marine Avenue Streetscape Improvements (38/100 -2004) Assessment District 87 Big Balboa Island (89/100 -2004) • • City of Newport Beach Regular Meeting July 13, 2004 13. TELECOMMUNICATIONS FACILITY PERMIT NO. 2003 -003 (PA2003 -255) (contd. from 5111104 and 6/5104). City Clerk Harkless announced that the member of the audience that removed this item from the Consent Calendar has already left the meeting and stated that he would present his comments at the meeting on July 27, 2004. Motion by Mayor Ridgeway to continue the item to July 27, 2004 at the request of the applicant. The motion carried by the following roll call vote: Ayes: Heffernan, Rosansky, Bromberg, Webb, Nichols, Mayor Ridgeway Noes: None Abstain: None Absent: Adams P. MOTION FOR RECONSIDERATION -None Q. ADJOURNMENT - at 11:10 p.m. to 2:00 p.m. on July 19, 2004, Closed Session. The agenda for the Regular Meeting was posted on July 7, 2004, at 3:30 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 oh July 9, 2004, at 3:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary Mayor • City Clerk Volume 56 - Page 1076 INDEX (100 -2004) City of Newport Beach Regular Meeting July 13, 2004 INDEX THIS PAGE LEFT BLANK INTENTIONALLY. Volume 56 - Page 1077 0 0 CITY OF NEWPORT BEACH City Council Minutes Adjourned Regular July 19, 2004 - 2:00 p.m. ROLL CALL Present: Heffernan, Rosansky, Bromberg, Webb, Nichols Absent: Mayor Ridgeway & Adams (excused) CLOSED SESSION Pursuant to Government Code Section 54956.8, the City Council met in Closed Session to discuss the terms and conditions of the lease for the Marinapark property. PUBLIC COMMENTS - None ADJOURNMENT - 4:30 p.m. The Notice of Adjournment from the Regular Meeting of July 13, 2004 was • posted on July 14, 2004, at 8:00 a.rrL on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk • Recording Secretary Mayor Volume 56 - Page 1078 INDEX City of Newport Beach Adjourned Regular Minutes July 19, 2004 INDEX THIS PAGE LEFT BLANK INTENTIONALLY. Volume 56 - Page 1079 0 0