Loading...
HomeMy WebLinkAbout01 - 08-14-2007 - MinutesSeptember II, 2007 Agenda Item No. I CITY OF NEWPORT BEACH City Council Minutes Study Session August 14, 2007 — 4:00 p.m. I. ROLL CALL Present: Council Member Henn, Council Member Curry, Council Member Daigle, Council Member Gardi Excused: Council Member Webb II. CURRENT.. BUSINESS 1. CLARIFICATION OF ITEMS ON In response to Council Member Gardner's Main Relocation), Public Works Director preclude the City from upgrading later. 2. ASSESSMENT DISTRICT Public Works Director Badum procedures involved to form an A utility companies: He reviewed tt slide does not inc' staff time. ADs is that the :ger to co bid, which dr' s the ost up. He and 69. Tem CALENDAR. Mayor Rosansky, regarding Item 5 (Buck Gully Sewer ndicated that the project does not presentation to discuss the r istrict (AD) and the roles of the City and and consultant costs and pointed out that the ited out that some of the problems with larger and the contractor has to float the cost in their ed the timeline that occurred with Districts 68 Joan Cox, Ha ' a 7BBadum . wed the sequence of events to create an AD and indicated that o or more signatures on the petition. She confirmed tha 20B ty owners drive the AD process since they bear the he ye t and discussed how the process could take over four ears. Public rks explained that the two year design timeline is due to the complexity he fast the utility companies can design their portions. Ms. Cox provid an overview of Proposition 218 and discussed the types of benefit determinations meowners may receive. She confirmed that the property owners have put relative to ow the benefit analysis is structured. She reported that the three basic fit determ' tions (aesthetics, safety, and reliability) have always been in the City's En is orts. She further reviewed the benefit methodology and balloting noted that it is important to have equity. Ms. Cox drilized a slide to discuss the content of the Engineer's Report. She confirmed that it is the City's responsibility to make sure the benefits methodology is defendable since they approve the Engineer's Report, but the ultimate responsibility, is on the engineer who signs the report. City Attorney Clauson reported that an Engineer's Report can be challenged by a property owner through a lawsuit. She explained that the court would look at whether the Engineer's Report is defensable and that the City has. only had one challenge and no damages were assessed since the challenge was a writ. Volume 58 — Page 236 City of Newport Beach Study Session Minutes August 14, 2007 In response to Council questions, Ms. Cox confirmed that the City does warn the petitioners that the cost index has been about 5% a year and that they ask them to petition higher. She noted that it would be a policy issue relative to what to do if the cost is significantly higher than the initial cost, but noted that the City has already gone through the full design process by this time. Public Works Director Badum added that the petition process is also a mechanism for Council to determine whether it wants to advance the money or not. 1P Eddie Marquez, Regional Manager of Public Affairs for reported that the City's AD practices follow standard Beach has one of the most active Rule 20B programs in Joe Cordero, Project Manager at SCE, discussed the that it takes them about three months to get the added that it takes three to four months before tl due to the base map process. He discussed La districts only have about 20 to 40 homes. H n< able to manage its design portion; howevAL0 the contractors the City could use. He note and Rule 20B projects in Orange County. "alifornia Edison (SCE), He added that Newport :) year de %accha s and added and secue orderHe t des ignea the design ch's process, but that their d that he will find out the City is .s a limited amount of SCE - approved the Project Manager for all Rule 20A Public Works Director Badum reported that the BNthere AD was done in phases. He noted that there . are issues wit ogressive deslly in tight areas like this. Associate Civil Engineer Areini d that eight phases in the project design. Jeff Merickel, Project Manager for 'I until SCE finalized their design. H s manner and that can only do importanZeast- where the tre from the th Island and A explained can be done in ensure th ks. a confirmed th, Beach and t at the same P, ' 'cated t M AT &T couldn't begin designing that his drawings were delivered in a timely fin things ahead of time. He emphasized the line is going and pointed out that SCE is feeding r is feeding into the Island from the west. He bases, but he has to design the entire Island to fe is the dedicated project manager for Newport e o contractor depending on how many ADs there are e indicated that T &T doesn't hire outside contractors because they to telephone plans. Mublic Works ctor reviewed the slides relative to the scheduling issues and construction cos sues. oted that sometimes the property changes ownership by the time constructio is supposed to begin, so the petition isn't representative anymore. He also discussed alternative of having the City take the lead for construction, like SboryBeach, t this method would take more employees and construction staff. Mr. l cautio d the City relative to creating smaller ADs for Balboa Island because of and nstruction issues. He indicated that costs are related to how fast the AD ces d and that it will probably cost more to do a large AD in pieces. Mr. Marqz noted that SCE's guaranteed price only lasts nine months. Public Works Director Badum noted that this is a problem with the AD process because they lock in the prices at the beginning of the project and can't ask for more. Mr. Merickel discussed flat sum billing and noted that it's difficult for utility companies to give guaranteed prices, so this is why they started the bidding process. He added that they're not sure one contractor would be willing to bid the entire Island. Discussion ensued relative to requiring residents who sign the petition to pay some up- Volume 58 - Page 237 City of Newport Beach Study Session Minutes August 14, 2007 front money. Ms. Cox reported that most agencies in Northern California have instituted this policy. She stated that some cities even have the residents pay the full amount up front before the project can begin. Regarding construction cost issues, Public Works Director Badum reported that extra money collected is generally used to pay down the outstanding bond debt and then will be refunded to the residents. Mr. Marquez indicated that the utility c pany doesn't report their costs to the City or homeowners since it is proprietary i mation, but they are regulated by the Public Utility Commission (PUC) and area ed a certain amount of profit a year. Public Works Director Badum indicated that the City be] apply because this is private money for undergroundi and operated by the City. He indicated that SCE l that this would increase the cost of the AD .5% % case law, Department of Labor interpretation and Department of Industrial Relations sent an info a es t revailing wages do not futility that are not owned laced this o e contrator and City Attorney son discussed ate laws. She re d that the t states that SCE .a the utility companies are subject to prevailing ges. Marquez indicated that SCE's determination is that they will not revailing wages, but they inform the contractor to follow all local applicable rules. y Attorney Clauson stated that she has been of the opinion that, because Newport Beac charter city, the City is not subject to prevailing wage laws and because the AD funds aid by the property owners. She indicated that more research w eed to be conduc owever, since SCE is changing their position, the City may be a chance in including prevailing wages. She discussed how charter cities st reviou upreme Court decisions that charter cities aren't subject to revailin a ess the project is of regional significance. Public Works Dire Badum discus street and alley integrity and confirmed that this adds to the cost inted out th ey try to combine the AD project with pavement rehabilitation d ut ty replacement rojects to reduce costs. He discussed alternatives to defer cost City Attorney us ne has to be connected before poles can come down and the change can occur. a reported of only one instance in which someone Othat for t connection and the City took them to court to force them to do it. orks ector m reviewed the Income Tax Contribution Component (ITCC) . Mar z explai that, when the work is completed, the work is deeded over to deeme a gift, so SCE has to pay the tax; however, they pass on that tax. He at the I has deemed municipal projects exempt and the City doe sn't pay ITCC; if it do n't pay it and the IRS changes its determination, there's no way to ask money City Attorney Clauson noted that she has not looked into this issue, but if unic al projects, then the argument of prevailing wages arises. Additionally, oth argument that, since Newport Beach is a charter city, prevailing wages Bob Hessell, Bond Counsel, reported that, if there is an undergrounding of utilities and it didn't add to the customer base, there should be no tax if there was no benefit to the utility company and it was a public purpose. However, the PUC stated that, if it were a taxable matter, the utility companies cannot pass that onto the rate payers, but the utility companies have told cities that they will pass it onto the cities if they are taxed. He stated that the IRS has 10 years after the bond is issued to collect it. He stated that, to his knowledge, there has never been a tax imposed for an underground utility assessment Volume 58 - Page 238 City of Newport Beach Study Session Minutes August 14, 2007 district as long as they're done in a manner that the City has done it in. Mr. Marquez reported that he just spoke with the SCE Tax Department and they will provide the City with a letter of waiver of the ITCC for future projects. In response to Council questions, Associate Civil Engineer Arciniega reviewed the Southern California cities they surveyed that have the residents pay r certain AD costs. Associate Civil Engineer Lee stated that Manhattan Beach is the y city they surveyed that has a time limit on the collection of petition signatures. Council Member Henn believed that allowing the AD p onents the opportunity to participate in the working meetings before the assess nt eers issue their first report would improve the AD process. He further re ended ng a maximum size standard for ADs and noted his concerns relative sessment Di t No. 87 (Balboa Island). He suggested that the City be more ilitating in the sf ure gathering process. A Mayor Rosansky indicated that staff needs rece' the SCE waiver letter and look into the prevailing wage issue. He stated t City should look into requiring a fee payment, having a limit on the signature co n period, providing more input relative to the boundary, having a minimum size of the riot where feasible, and providing the residents with how much the previous districts ha t and what hook -up costs might be. Council Member Gardner sugge .500 mntrihuti e_ Council Member Henn suggested at staff ith specific recommendations with the idea that the period should be I ortened a ad at the recommendations should also include ways to shorten the de pr ss and shorten the construction management process. Further, the residents sh 1 e involved early in the engineer's discussions about how benefi to be distrib and provide the residents with recommendations on how to get si atures since ny homeowners, especially on the Peninsula, are absentee ow rs. He uggested incre 'ng the percentage of signatures needed to begin the proces nd look nto guidelines f a maximum size of the district. Regarding the timline for ty h t y Clauson noted that there is a time limit for hooking up th an i s r of how quickly the City wants to go to court for enfo . She ed that staff can bring back a policy relative AD issues. . R. Dildin scusse 101 and commended Laguna Beach for what it does. He suggested re vi 'ng the 20A and Rule 20B maps to determine what areas are still in the City and ask if the Ci can borrow against this money. Mr. Cordero rep ed that the annual allocation for Rule 20A funds is $300,000 and the ity is mortgag for seven years for about $2 million. He noted that the new PUC ruling o ust 2006 that cities can only mortgage out for five years. Charle If elieved that ADs benefit SCE and asked why he should pay for it. He took issue wi E's workmanship lately. He suggested getting an opinion letter from the IRS. Mark Carlozzi believed that an investigatation should take place relative to how much money undergrounding saves the utility companies in terms of maintenance over time. He also took issue that the utility companies are making the residents pay the tax on their benefit. City Attorney Clauson believed that the engineer needs look at whether there's a general Volume 58 - Page 239 City of Newport Beach Study Session Minutes August 14, 2007 IV benefit vs. specific benefit, and whether the benefit is for the property, City, or utility. Mr. Marquez indicated that maintaining lines that are undergrounded is more difficult because they would need to dig to get to the line. He stated that residents pay for the undergrounding because the Rule 20A money comes from the general rate case and other areas should not have to pay for another city's undergrounding. Joyce Faye Barnes expressed support for undergrounding and al ciation for trying to keep the costs down. She stated that residents need to know eo tly how much it's going to cost and that the process needs to be simple before signing tWpetition. Pete Anderson stated that he was the person who took o tH% ers for AD 99 in 2000 and the cost changed from $9,7001lot to $28,00011ot s it took g to get the district through. He noted he had a hard time finding abs a landlords. elieved that what Laguna Beach is doing has merit and getting a /approval rate w Nt=actuhe lt. He noted that his initial boundary of the school to th reet passed an City added didn't. He expressed the importance o akin a area concise. ested that he be allowed to come back to the City to a th strict only go from the school to 19th Street and go out for rebid. 3. STATUS OF IMPROVEMENTS TO DEVEL ENT REVIEW, PLAN CHECK AND PERMITTING PROCESS. Continued to the Sep er 11, 2007 Study Session. PUBLIC COMMENTS -None ADJOURNMENT - 6:10 p.m. City Clerk la for the Regular Meeting Bulletin Board located out, I on August 8, 2007, at 4:15 p.m. on the City of Newport Beach Administration Recording Secretary Volume 58 - Page 240 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting August 14, 2007 — 7:00 p.m. I. STUDY SESSION - 4:00 p -m II. CLOSED SESSION III. RECESS IV. RECONVENE AT 7:00 P. H. FOR REGULAB6ETING V. ROLL CALL Present: Council Member Henn, Coun ' er Curry, Mayor Pro Tem elich, Mayor Rosansky, Council Member Daigle, Council er Gardner Excused: Council Member We VI. CLOSED SESSION REPORT q- City Attorney Clauson reported t t Coun t tovdis s the potential for acquiring, by lease, property at 500 Newport Center D 've. The p ties included Dan Miller of The Irvine Company, Mayor ky, and Ma em Selich. Mayor Rosa repo dthat, in con, ction with the development agreement for Newport Center, The Irvine any h offered the Ci a 99 year lease at 500 Newport Center Drive. Council has authorized the oti committee o ayor Rosansky and Mayor Pro Tem Selich to continue negot- th o e precise location, size, shape, andterms of conveyance, a re pr to value posed site. He reported thatCouncil's votewas unanimous. 'XityAttorney a tha until Member Webb participated in the closed session meeting via M VIL EDGE OF ALLMIANCF.Woun cil Member Curry VIII. I TION - Re erend Tim McCahnont, Presbyterian Church of the Covenant DL PRESE ION ProciamationWnoring Disneyland Scholarship Recipient - Disneyland Resort Ambassador Adonis Reeves fresented a scholarship to Evan Clark. Mayor Rosansky read the proclamation and presented it to Evan Clark. Y, NOTICE TO THE PUBLIC XI. 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 Gardner stated that there will be two meetings at the Corona del Mar Library Branch on August 27th from 9:00 a.m. - 11:00 a.m. and 6:00 p.m. - 8:00 p.m. to discuss the closure of Volume 58 - Page 241 City of Newport Beach City Council Minutes August 14, 2007 rq a the branch. Following a presentation, the public will have a chance to ask questions or provide comments. Council MemberGardnerstated that the League of California Cities sent outa questionnaire asking if the City would be interested in supporting a 300 foot dispersion rule for group homes.Council Member Daigle stated that she will be representingthe Cityat the League of California Cities conferencein Sacramento and will be casting a vote on behalf ofthe Cityin support of the resolution that will give local governmentdistancing authority over all group homes. Council Member Gardner asked about the energy audit and ested a report on pros and cons of one -way streets. Council Member Henn requested a staff report that rep& s G the 'City's Building Code penalties for unpermitted construction of illegal dwelling units. H so d that staff look into increasing fines and requiring abatement. , Council Member Curry stated that the deba Hall site has exposed both strong and pass' to Mayor Rosansky and the community fo t con( the community. He pledged to try to do be Council Member Curry discussed the growing c a charter amendment that wo quire a vote benefits. He requested that the i ferred consideration of appropriate langu e a I businesses, employees, and City anageme amendment prepared for the 2008 el tion. 0 53 C. (g Newport ter Park as a potential City s on both side the issue. He apologized to the debate in a er that is respectful of of public employee pensions and suggested having o e people to increase publicly - funded pension to t inance Committee for review, including the impact,," d to receive public input from residences, repo' 'd that his goal is to have a charter 1. E AD URNED REGULAR AND REGULAR MEETING OF UL 4, 2007 Waive reading of subject minutes, approve as written 2. R ING ORDINANCES AND RESOLUTIONS. Waive reading in full of all o noes rd resolutions under consideration, and direct City Clerk to read by title v. 5. MUCH GULLY SEWER FORCE MAIN RELOCATION - AWARD OF CONTRACT (C- 3803). [381100-20071 a) Approve the plans and specifications; b) award the contract (C -3803) to Mike Prlich & Sons, Inc. for the total bid price of $274,633, and authorize the Mayor and the City Clerk to execute the contract; and c) establish an amount of $27,000 (10 %) to cover the cost of unforeseen work. 6. POLICE FACILITY PERIMETER SECURITY FENCE - COMPLETION AND ACCEPTANCE OF CONTRACT (C- 3861). [381100 -20071 a) Accept the work; b) authorize the City Clerk to file a Notice of Completion; c) authorize the City Clerk to release the Labor and Materials bond 35 days after the Notice of Completion has Volume 58 - Page 242 City of Newport Beach City Council Minutes August 14, 2007 been recorded in accordance with applicable portions of the Civil Code; and d) release the Faithful Performance bond one year after City Council acceptance. RELEASE OF SURETY FOR OFFSITE PUBLIC IMPROVEMENTS COMPLETED ON 15TH STREET FOR TRACT NO. 16468 (ONE NAUTICAL MILE). (381100 -2007] a) Accept the off -site public and private improvements constructed as Tract No. 16468 per conditions of approval; and b) authorize the City Clerk to release Faithful Performance Bond No. 104304075 in the amount of $135,000 for public improvements along 15th Street. 15. FD ET AMENDMENT FOR PROFESSIONAL LEGAL SERVICES FOR L RASS ISSUES N LOWER t amendment (08BA -008) transferring $165,000 from General Fund un propriated reserves to the City Attorney's Professional and Technical account S20. AUTHORIZATION TO ENTER INTO AN MOU WITH SEASONAL LIFEGUARDS (ANBOL) (C- 2058). (100 -2007] Authorize the Mayor to execute a Memorandum of Understanding (MOU) based on the attached Term Sheet between the City and the Association of Newport Beach Ocean Lifeguard (ANBOL). Motion by Council Member Henn to Motion to add Item S22 (Taste of Newport) to the Consent Calendar since the application was received after the agenda was posted and the next Council Meeting isn't until September 11, which will not allow enough time for advertisement of the event. Moved by Council Member Curry, no second required. Volume 58 - Page 243 City of Newport Beach City Council Minutes August 14, 2007 G:�711 3. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council Member Daigle, Council Member Gardner Absent: Council Member Webb S22. TASTE OF NEWPORT BANNERS - APPROVAL OF ENCROACHMENT PERMIT. [100-20071 Conditionally approve the request of the Newport Beach Chamber of Commerce for the installation of 191 banners, from August 20, 2007, to September 17, 2007, for the annual Taste of wport. Installation will be along Jamboree Road, MacArthur Boulevard, W tcliff Drive, Coast Highway, and Newport Boulevard. Motion by Mayor Pro Tem Selich to removed (3, 4, 11 and 15). The motion carried by the following Ayes: Council Member Hen Rosansky, Council Me: Absent: Council Member Webb NEWPORT BEACH 2920 NEWPORT BO Council Member Henn read necessary a security e be m d to include full -t the City Provision the Brewi through S or a large in the eves t,, _a change Calendar, except for the items tember Curry, Ma Pro Tem Selich, Mayor Council Member G W OF USE PERMIT NO..3485, from 7/24107). [100-20,071 e ' us "minutes. He believed that it is no longer t. He Mrece ended that Provision 22 of the resolution rity Wednesday through Saturday only. Regarding the the City lot not allow parking seven days a week, he the Brewing Company complies with the use permit, the Coastal Commission at a later date based on the Oil-Member Henn to adopt Resolution No. 2007 -57 with a modification to A:'.Full-time security guard shall be posted in the parking lot owned by span , ?after 9:00 p.m. through one -half hour after closing on Wednesday nights, and Sunday through Tuesday nights if the nights fall on a holiday is anticipated due to a sporting event or other promotional event at the Je VKolb owner of Newpo rt Beach Brewing Company, believed that the Brewing obeing set up for failure. He noted that his business has decreased since the sues arose. He stated that he has spent $1,000 /month more insecurity, moved the line, and changed schedules to accommodate the residents. He stated that he will remain committed to his fundraising efforts and hoped that support from the City will continue for the only brew pub in the City. Regarding Condition 9, Steven Miles stated that the Brewing Company already reports to the County and that the City's request for a report is unwarranted. He noted that Condition 6 has been in effect for 14 years. He highlighted the issues that led to Condition 6 in 1993, and stated that there is no evidence to cause the City to change Condition 6 or take away the 1,500 square foot service area before 5 p.m. Volume 58 - Page 244 City of Newport Beach City Council Minutes August 14, 2007 Bruce Low expressed concern about the security changes and stated that he is disappointed that the Brewing Company is still trying to interpret the Coastal Commission's intent He stated that the Coastal Commission invited the Brewing Company to file an application so they could hear the issue. He noted that the City offered to restrict the space to induce the Coastal Commission to come up with a Coastal Development Permit. Mayor Rosausky agreed with the applicant that the 1,500 square feet should not be taken away since the problems are with noise and the parking lot. He believed that the security change will help with solving the problem with the neighbors. Regarding Condition 9, he didn't believe that the City should require them to repo heir liquor and food sales. Substitute motion by Mayor Rosanskv to s ort the changes in Provision 22 and eliminate Condition 6 and portions of Condition at require hourly reporting of liquor and food sales. The substitute motion failed by the follog roll call Curry, Mayo ro Tem Selich, Council Company never had a right to operate as dance with what the Coastal Commission hat the use permit was uniquely granted The motion ed by the fo wing call Ayes: until ember He until Member Curry, Mayor Pro Tem Selich, Council " Me n Daigle, Coun ' ember Gardner Noes: yor sansky Absent: Webb i CENTENNIAL MONUMENT - APPROVAL OF VICES AGREEMENT WITH PERIDIAN INTERNATIONAL, INC. The item wadinadverteiltLv removed from the Consent Calendar. otion b until Member rry to a) approve a Professional Services Agreement with " "an I rnational, Inc. of Newport Beach for the McFadden Plaza Centenniak Mon ent roject at a not to exceed price of $3b,500 and authorize the Mayor and City Clerk cute the agreement; and b) approve a budget amendment (08BA -007) increasing revenue stimates in 0129 -5887 by $45,000.00 and increasing expenditure appropriations in 7251- C8002005 by $45,000.00 to cover the costs for design and preparation of an environmental document and application package for a Coastal Development Permit. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council Member Daigle, Council Member Gardner Absent: Council Member Webb Volume 58 - Page 245 City of Newport Beach City Council Minutes August 14, 2007 11.. MEGAN'S LAW REGISTRATION AND MONITORING PROCESS. [100 -20071 Police Chief Klein provided a history of Megan's Law and reviewed the three registration classifications: address (repeat offenders), zip code (serious crimes -no immediate threat), and non - posted (lesser crimes). He reported that the City has three full address registrants and five zip code registrants, which is less than some of the neighboring cities. He explained that, when a registrant moves, they have five days to re- register in the city they moved to. Further, when sex offenders register with the City, a picture is taken of them and their car, and random checks are conducted to confirm that they still reside in the City. He stated that the Police Department also works with parole office d that a national database gives them the ability to track violators. He reported tha a Megan's Law website is linked to the City's website. In response Council Member Curry's questi , Po Chief Mein stated that, because the City has such a small number of regist Ws they ha good idea of who isin town and registered. In response to Cynthia Koller's q .., tion, yor Rosansky s d that by law, out -of -state violators have five days to regis Motion by Council Member_ Curr receive and file the report. The motion carried by t ollowing roll ote: Ayes: Council Member a ouncil Me r Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council embe le, Coun ember Gardner Absent: Council Member W b Daigle added that permits will be granted faster with M .'on bv%CounclUMember. Henn to approve a budget amendment (08BA -008) transferring 165,000 om General Fund unappropriated reserves to the City Attorney's Professional d Technical account 0510.8080. by the following roll call vote: Ayes: cil Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor ansky, Council Member Daigle, Council Member Gardner Absent: Council Member Webb XIV. PUBLIC HEARING 16. AERIE (PA2005 -196) - 201 -205 & 207 CARNATION AVENUE AND 101 BAYSIDE PLACE - THE PROJECT CONSISTS OF THE DEMOLITION OF AN EXISTING 14- UNIT. APARTMENT BUILDING AND SINGLE - FAMILY RESIDENCE AND THE CONSTRUCTION OF A NEW, 9 -UNIT RESIDENTIAL CONDOMINIUM BUILDING. [100-20071 Senior Planner Campbell utilized a PowerPoint presentation to display photos of the 1.4 Volume 58 - Page 246 City of Newport Beach City Council Minutes August 14, 2007 acre site. He explained that the existing 12 unit apartment complex and single family dwelling will be demolished to make way for a nine unit condominium complex. He discussed the applications for the General Plan, Coastal Land Use Plan (CLUP), Zoning Amendments, tract map, and modification permit. He stated that the Planning Commission dealt with the issues of public access and public views which are protected by policies, such as the Predominant Line of Existing Development ( PLOED). He explained that the PLOED is more specific and restrictive than General Plan policies and the methodology used to determined PLOED was calculated by taking a representative block of homes and determining the median of the distance to a reference noint. In response to Mayor Rosansky's question, Senior P utom er Campbell stated that a resident has the right to build to the PLOED which does n aticallv override the CLUP. In response to Council concerns, Senior PI r Ca ell stated that the six policies in the CLUP that are related to this project c e reviewe the Planning Commission's April 5th staff report. — In response to Council Member dner' question, Assistan ty Manager Wood stated that the expectation of the CL s t onform to the General in regard to land uses more so than in the protection of co resources. In response to Council ember Daigle uestions, Senior Planner Campbell stated that Ocean Boulevard has t limitation Carnation does not. He also stated that the Planning Commission co i e area to two separate bluffs. In response to Council Me er Henn' 'on, or Planner Campbell stated that, even if Channel f was inc lud , it will ouly the PLOED down one foot. City Attorney Clauson s hat it is the' 'n retation tha the applicant has a right to develop to the PLOE ' ut th do t have right to establish where the PLOED is, ouly the City has that ht. She oted that other olicies can be considered and modified to lessen the impact on the" Pla ' Cam hat the project includes two parking lifts that will take the ow three sub anean parking levels, construction management for the moving 2,00 rds of soil, and traffic flow for concrete trucks and dirt haulers. He stated tha ere is itigation standard as part of the conditions of approval that requires a detailed tructio anagement plan to minimize construction disruption. He discussed the enviro ntal document and the comment letters that the City has received. response Council Member Curry's questions, City Attorney Clauson stated that she has n ad the pportunity to fully review the Mitigated Negative Declaration (MND)for this proje Se or Planner Campbell stated that the declaration has been available for review forabo days and two drafts were given to the Planning Commission.The document was revised gain to include that theapplicantagreed to not buildbeyond the PLOED. In response to Council Member Henn's questions, Senior Planner Campbell stated that the Planning Commission found a reasonable line between the two bluffs and the applicant left the bluff more intact to lessen the impact. In response to Council Member Daigle's questions, Senior Planner Campbell displayed the plans and topography of the units. He stated that there are two ways to get down to the beach and each level is pulled further away from the water. He noted that the project includes elevators and other amenities. Volume 58 - Page 247 City of Newport Beach City Council Minutes August 14, 2007 In response to Mayor Rosansky's questions, Senior Planner Campbell stated that, as a part of the conditions of approval, the project will include a signaling mechanism to know which elevator to pull in front of. Further the two elevator lifts will rest at street level when not in use. The street level parking lot will hold three guest spaces, and residents will have to let guests inside. He agreed that it is not the most efficient and convenient parking arrangement. City Attorney Clauson clarified that elevator access for vehicles in Newport Beach have currently only been for single family residences. Senior Planner Campbell utilized slides to describe each floor and stated that the new building will be ten feet higher than the existing b g but is still consistent with the height limits. City Attorney Clauson reported that the City c take action on the issue tonight because there is no determination on whether if is approvable MND at this time. She explained why her office did not have portunity respond or look at the comments that were raised before the public hear'_ .' In response to Mayor Rosansky'.corcer , Senior Planner pbell stated that staffs PLOED recommendation is 50. et in der to protect public s. He assured Council that the project is consistent with izing the impact to public stal views if it is built within the PLOED. City Attorney Clauson that Council first need to determine the PLOED and then look at other policies to a impact. stated that it is up to Council to determine if they want to give guide at e, but s _ not in the position to advise Council on the MND. In responae"t6 ouncil ques n error Planner Campbell stated that staff is asking for guidan from ouncil to hel ecidethe PLOED for this project. Mayor Pro Tem Selich belie that th# PLOED sho a used as a factor along with other factors, and should not domina the proval. City A ney Clauson stated that an ideal situation is that the PLOED i e rior to esigning projects. She added that Council is free to e t f LOE In respo to Co it Member Curry's question, Senior Planner Campbell stated that the applicant a adju ents to protect and preserve the bluff. He reported that there is no set calculati to de ine the PLOED and the Planning Commission did look at the MacIntosh h e on Ocean Boulevard to help determine the PLOED. Julian pplicant, stated that he has been working on the project for over four and a h ears, anged the project to not go down as far on the bluff created a 50% increase in view t corner of Ocean Boulevard and Carnation Avenue, kept a large portion of the project single height to maintain residential views, and windows were limited on the south si a for the neighbor's privacy. He reported that the actual building footprint is only 1,400 sq. feet larger than the existing building, the project can accommodate 32 cars, two golf carts and three extra public spaces on Carnation, and the building is state -of- the -art for environmental purposes. He believed that benefits include public views, increased City tax rolls, and reduced traffic by going from 12 to nine units. He extended an invitation to residents to come to him with concerns. He stated that, on May 17, six Planning Commissioners voted and found that the AERIE Project was in full conformance with the CLUP and recommended that Council approve the project. He added that he has continued to listen to the residents and has proposed to move the project back even more to please the neighbors. Volume 58 - Page 248 City of Newport Beach City Council Minutes August 14, 2007 Brion Jeannette, project architect, utilized a PowerPoint presentation. He discussed his solution and showed the .aerial view of theproposed building outline, public view from Carnation and Ocean Boulevard, categorical exclusion zone, setbacks, shore cliffs, and photos of the bluffs since 1908. He stated that each unit will be approximately 5,000 square feet and, of the 32 parking spaces, only 18 are serviced by the elevators which have an automated parking system with lights and signals. He reported that the Planning Commission approved the original plan but the applicant moved the building back nine feet, which is substantially less than what the current code allows. In response to Mayor Pro Tem Selich's questions, Jeannette stated that the AERIE project can be taken to the Coastal Commission for eir review, but they would not want access to the beach from this site because it is danagous. Council Member Gardner believed that the ect i t living up to the CLUP and General Plan_ She suggested that Council not ap a this pro because Ocean Boulevard should not be included when determining the )' ED. Motion by Council Member u to OoAnue the item. NL Marco Gonzalez, attorney i show CEQA fundamentals Fundamentals that include violates CEQA and the Tim Payon, counsel for tf issues assuming there is a Bud f M. Mr. Maha during the rom t w Group, displayed a P rPoint presentation to that ne be .considered. He talked about the Coastal Act I rules fro statute and case law. He believed that the MND Coastal Comm ion will not approve this development. ap t, stated OW they will provide communication on the ithin IMWeet of the project and supports it. He in on their due diligence. He believed that approving the adversely affect public welfare_ project is a bit much. kung Commission overlooked the horizontal and vertical project is in violation of PLOED. the bluff has to be protected. He feels that things can go wrong I hopes that Council limits the amount of building on the bluff. Veciated d that he supports the AERIE project because he doesn't want to see another would take away every square inch of dirt and air. He stated that he t the project will open up views. r essed support for the project and took issue with some of the tactics that aking. He believed that this project will end.up being one of the most magnificent and admired projects in the City. Richard Casper expressed concern with the welfare of the community and believed that more attention should be spent on the infrastructure of Newport Beach and not on building projects. John Martin stated that, while reading through the MND, he came up with 31 items he felt were potentially significant impacts and expressed support for the direction Council is taking_ He believed that the destruction of the natural slope is being overlooked and recommended that Council require an environmental impact report. He expressed concern Volume 58 - Page 249 City of Newport Beach City Council Minutes August 14, 2007 for cave -ins while grading. He believed that the parking plan is not convenient, the streets will be impacted, and more examination and information is needed before approving the project. Doug Snyder expressed support for the project and believed it meets all of the zoning codes. Brian Boyle commended the project and believed that it adds to the community. Francois Badeau commended Mr. Julian for meeting with the residents to ask for their input and believed that the area will be much nicer thanA is now. Dick Hunsaker expressed support for the project didn't believe that the construction will be burdensome. John Cummings expressed support forthe pofet an 'eyed that it is well thought out. Rob Piatti stated that the PLOED can,RSause a greater b oss and believed the project is out of scale for the area. He added t the o to four yea construction will impact the neighborhood which already hase c prp ems..Further, par is already a concern and the project will only add to the em.. Marilyn Beck expressed opposition to project because it is massive for the neighborhood. Dolores Otting stated if the Plan Commission meetings were on the web or televised, the project wo ntinuously postponed. She noted that EQAC did not have the opportunity to mm the las ND. She explained EQAC's role in the PLOED and stated that th minutes a rep of the Planning Commission meeting differ. She emphasized that a PLO nee a established. Ann D ue�ampton be that Mr. Julian has addressed the issues in the neig hood, b t her concern the height of the project because it will obstruct the views of re is on Ocean Boulevard. an V sed op_ sition to the project because it is inconsistent with the ct, P and a Ran. He believed that the Coastal Commission will not approve prod because the applicant wants to go up in height and down on the bluff. He encourage oun define the PLOED to be 52 feet above sea level. He hoped that Council will y atte to the coastal bluff, public views, and public access. Dick Nichols tated that the project will enhance the views and that homes are being built n the bluff other areas. He emphasized that Mr. Julian has compromised and worked the nei burs_ llavi expressed the opinion that the PLOED should have been determined prior to the desi of the project. Mayor Pro Tem Selich stated that the Implementation Committee on the LCP will be recommending that the PLOED be determined on all properties and believed that direction should.be given to Mr. Julian prior to sending the project back to the Planning Commission. He believed that the PLOED is the maximum limit of where to build and the other policies in the CLUP and General Plan take precedence over the PLOED. Further, the structure is not in scale with the neighborhood and the project excessively alters the bluff. He indicated that he will accept the City Attorney's and staffs interpretation regarding the PLOED at this time. He stated that he wants any new structure to stay within the footprint of the existing height limits. He asked that the applicant come back with a structure that is reasonable within the scale of the existing development, and does not result in an excessive Volume 58 - Page 250 M City of Newport Beach City Council Minutes August 14, 2007 alteration to the bluff. Council Member Curry agreed with Mayor Pro Tem Selich, but believed that the project should be continued to allow the applicant time to change some of the design elements and bring them back to Council. He believed that the MacIntosh residence is the logical reference point to establish the PLOED for this project; however, he feels that Council owes the applicant a definitive position on the PLOED. Council Member Henn stated that,if there is a lower height at the top of the project to allow for more viewings, the project should be allowed o more of the bluff. However, this project wants to go higher in height and lower on t bluff. He recommended setting the PLOED at a higher limit. Council Member Daigle stated that there and feels that Council should uphold t taken back to the Planning Commissio hdopft6polia ies on visual quality and scale, cies. S greed that the project should be e it's too fa wn the bluff. to send the p ct back to the Planning QED, and exclude n Boulevard from the -v to include Mayor Rosansky's suggestion of ding the Ocean Boulevard property- if the PLOED were 52 feet the existing fat the projectis a multi - family site not Council mbeHenn believe at it is punitive if the. project's PLOED is 50 feet and that Mr. J n is ging up his hei allotment. Motio�t Council Member. Daigle to send this issue back to the Planning Commission with th direction to utilize the staff recommended PLOED of 50.7 feet. The motion carried by the following roll call vote: Ayes: .Mayor Pro Tem Selich, Mayor Rosansky, Council Member Daigle, Council Member Gardner Noes: Council Member Henn, Council Member Curry Absent: Council Member Webb PUBLIC COMMENTS Volume 58 - Page 251 City of Newport Beach City Council Minutes August 14, 2007 In response to Dolores Otting's questions, Mayor Rosansky stated that the City Attorney hires outside counsel and trial dates are set by a judge. City Attorney Clauson explained that she is required by the Brown Act to show that they are discussing issues regarding litigation. Dolores Otting reported that she fell on Spyglass Hill Road and wished that the area were cleaned properly. XVI. ORAL REPORTS FROM CITY OUNCIL ON COMMITTEE ACTIVITIES - None XVII. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT XVIII. 17. PLANNING COMMISSION AGENDA FOR AUCJMT 9, 2007. (100 -20071 Planning Commission Director Lepo reported 0 ollowing items: Pacific View Memorial Park (PA2006 -282); Knight Appeal (PA2 -137) - 2 Hazel Drive; Arco Gas Station Convenience Store (PA2007 -059) - 2100 stol Street, Bening of Mechanical Equipment (Code Amendment No. 2007- 004)(PA2 -056) 18. APPROVAL OF TEN YEAR A AUTOMATED RESIDENTIAL R COAST. [100-20071 General Services Dire on completed and they will b .n 9 the changes to the agree nt and I agreement tonight. He rep d th Consumer Index (CPI) c o ENT WITH CR &R INC..VO PROVIDE FULLY SE COLLECTION SERVICES IN NEWPORT stated t the agreement with CR &R has been ng Newpo oast on October 1, 2007. He pointed out d Co il that they received the most recent e t to the contractor will be based on the Ids a cap o % per year. In %tra to Lmendl Memb Henn's questions, City Attorney Clauson stated that the bed t o incl a that, on an annual basis, the increase is to be applied to a d that the ample in the agreement is wrong and will lead to wrong In respo to r Pro Tem Selich's questions, General Services Director Harmon stated that Wast ana nt has a 15% mark up for shareholders, and reported that the only way a fee i ase ca a granted in the new contractia by CPI, landfill increase, and an increase in r cling fee . However, it is up to Council to approve any increases. response Council Member Daigle's questions, General Services Director Harmonstated it is up Council to approve new programs and that, inCR &R'sproposal,they will sort the ed ste and educate the communities about recycling. He also stated that there will be a s done prior to the new contract that will set parameters for future performance standar s. He also talked about changes to the insurance , termination of the contract, and the time to cure default. He reported that the cost savings will be approximately $200,000 per year. Motion by Council Member Henn to approve the terms of the agreement and award a ten -year agreement with CR &R Inc., through September 30, 2017, to provide fully automated residential refuse collection services in the Newport Coast area. Dean Ruffrage, CR &R, introduced his staff and thanked Council. He stated that his intent is to reduce the amount going to the landfill by adding a considerable amount of commodities. Volume 58 - Page 252 City of Newport Beach City Council Minutes August 14, 2007 The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council Member Daigle, Council Member Gardner Absent: Council Member Webb XD:. CURRENT BUSINESS 19. APPROVAL OF THE REORGANIZATION PLAN FOR THE PUBLIC WORKS DEPARTMENT. [100 -20071 Public Works Director Badum displayed a Po Point presentation to discuss the reorganization of the department and stated thatff has employees ready to be promoted. In response to Council Member Daigle's queffidoons, P Works Director Badum stated that the reorganization allows for project m gers to wor lely with individual projects. He described how the Principal Engineer ill be mid-mana ent, with Associate Engineers and other staff reporting to them w nee In response to Council Member estion, Public Works D r Badum stated that there are no viable candidates for t eputy Public Works Directo no and that there is a problem with getting more experie d employees. 521. IR ARIFICATION OF RESOLUTION NO. 2007 -55 N AFF LE HOUSING IMPLEMENTATION PLAN AND MEMO D OF UNDERSTANDING (MOU) FOR THE SANTA BARBARA CONDO IUM OJECT (PA 2004 -169) AND DIRECTING THE USE OF $5 MILLION BE P , PURSUANT TO THE MOU. [100 -20071 City Attorne Clauson stated that there was an issue raised regarding the adequacy of the nda item t was on the last agenda. She indicated that the appropriate action was to endize t report andhave council reconsider the item under a new motion. Further, she rep d t she realized thatone of the conditions needed more clarification relative to the cone epayment to the Park Fee Fund. She reported that Council can reaffirm the original solution or adopt the new resolution. Motion by Mavor Pro Tem Selich to adopt Resolution No. 2007 -58, deleting Section 3 and rescinding Resolution No. 2007 -55, and schedule a separate discussion of Section 3 on September 11. Dolores Otting stated that the resolution did not make sense and was confusing. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council Member Daigle, Council Member Gardner Volume 58 - Page 253 City of Newport Beach City Council Minutes August 14, 2007 Absent: Council Member Webb XX. M_OTION FOR_RECONSIDERATION - None XXI. ADJOURNMENT, 12:44 p.m. The agenda for the Regular Meeting was posted on August 8, 2007, at 4:15 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 onAugust 10, 2007, at 1:57 p.m. on the City Hall Bulletin Board located outside of the City of Newport Blach Administration Building. City Clerk Volume 58 - Page 254