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HomeMy WebLinkAbout01 - Minutes - 05-23-2006City Coune.i2 Meet ng June 13, 2006 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes Study Session RAFT May 23, 2006 — 4:00 p.m. ROLL CALL Present: Council Member Curry, Council Member Selich, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols Absent: Mayor Pro Tern Rosansky (Mayor Pro Tern Rosansky arrived at 4:17 p.m.) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In regard to Item No. 5, Property Tax Exchange Agreement for West Santa Ana Heights & the Emerson Tract, Council Member Nichols asked if the County agrees with the staff recommendation. City Manager Bludau responded in the affirmative. In response to questions by Council Member Nichols, Public Works Director Badum provided additional information on the encroachment permit addressed in Item-No. 10, Non - Standard Improvements at 6707 and 6709 Seashore Drive, and provided the history of the improvements addressed in Item No. 11, Request to Construct Non - Standard Improvements at 3431 Ocean Boulevard. Referring to Item No. 16, Mitigated Negative Declaration relating to a Water Quality Improvement Project ( "Oloid Project ") around Newport Island, Council Member Nichols asked how well the project is expected to work. Assistant City Manager Kiff explained that there is a ten -year warranty and that the State Water Resources Control Board staff considers the project to be a pilot project and will allow the City to pull out with no penalty if it isn't, working. He additionally noted that an engineering firm conducted an analysis of the project and determined that it will work. In response to Council Member Daigle's questions regarding Item No. 3, Continuous Utility Service Agreements, Administrative Services Director Danner stated that the $35 fee is a one -time fee and covers the cost of providing the service. In regard to Item No. 5, Council Member Daigle requested additional information on the scope of the agreement and how the limitation on the City's land use authority would affect West Santa Ana Heights. City Manager Bludau explained that the property tax exchange agreement only pertains to the portion of the property tax that is not subject to the redevelopment agency. Both he and Assistant City Manager Kiff provided additional clarifications. Assistant City Manager Kiff confirmed for Mayor Webb that the agreement is a step in the annexation process, but does not finalize the annexation. Volume 57 — Page 663 City of Newport Beach Study Session Minutes May 23, 2006 Mayor Pro Tern Rosansky joined the meeting at 4:17 p.m. Regarding Item No. 14, Wide Area Network Upgrades, Council Member Daigle asked why a wireless network is considered preferable to a T -1. Administrative Services Director Danner explained that it's a matter of speed and cost effectiveness, and that the T -1 lines aren't providing the daily capacity needed. 2. BUDGET OVERVIEW. City Manager Bludau reviewed the budget presentations made at the City Council Study Session held on May 9, 2006, and encouraged the Council Members to ask questions and request additional information whenever needed. He noted the supplemental checklist provided to the Council Members. Council Member Daigle requested that Council Member requests included in the budget also be highlighted. Using a PowerPoint presentation, Assistant City Manager Kiff displayed the allocation plan for the City Council's budget and highlighted some of the expenditures included under maintenance and operations. At the request of Mayor Pro Tern Rosansky, Administrative Services Director Danner explained that the approximate $256,000 budgeted for salaries and benefits in fiscal year 2006 -07 includes the Council Member allowances, health, dental and vision benefits, and retiree and life insurance. It was additionally noted that Bob Burnham is also paid from this account for his legal work associated with spheres issues. A brief discussion followed regarding the money allocated for spheres issues. City Clerk Harkless displayed the allocation plan for the City Clerk's budget and reported that with the exception of the money allocated for elections, the 2006 -07 budget is status quo. She noted that the proposed allocation for elections is calculated from information provided by the County, and is expected to be twice as much as it was in fiscal year 2004 -05. Assistant City Manager Kiff displayed the allocation plan for the City Manager's budget, reported that it also is a fairly status quo budget and highlighted some of the expenditures included in the professional and technical services account. He noted that the City Manager's budget includes Harbor Resources, the Public Information Officer and Code & Water Quality Enforcement. It was clarified that the amount displayed for Harbor Resources, $1,965,090, includes salaries and benefits, as well as maintenance and operations. In response to Council Member Daigle's question, Administrative Services Director reported that approximately $5 million is being budgeted for overtime City -wide in fiscal year 2006- 07. Human Resources Director Ramsey displayed the mission statement for Human Resources and explained some of the department's functions. She reported that for several reasons, the City's turnover rate is currently very high, and specifically noted that 32% of the City's workforce is over the age of 50 and that it is becoming more difficult to recruit new employees. Additionally, she reported that 70% of the management level employees are over the age of 50, 41% are over the age of 55 and 56% of the department directors are retiring in the next year or are of retirement age. Human Resources Director Ramsey also displayed the allocation plan for the department, and the staffing and functions of the two divisions, which include administrationloperations and risk management. She listed and highlighted several of the department's service indicators, as provided in the Resource Allocation Plan. Lastly, she reported that the budget includes an increase of $120,000 for recruitments, $25,000 for employment litigation and over $54,000 for a temporary part -time employee. Volume 57 - Page 664 City of Newport Beach Study Session Minutes May 23, 2006 Administrative Services Director Danner displayed the department's mission statement. He also displayed a comparison of the fiscal year 2005 -06 and 2006 -07 budgets, and listed the items that account for the approximate $1 million increase in the 2006 -07 fiscal year. He stated that the departmentis made up of five divisions, which include Resource Management, Fiscal Services, Management Information Systems, Revenue and Accounting. He displayed the budget and functions of each. Administrative Services Director Danner displayed a list of other activities and the debt service estimates for 2006- 07. In response to Council Member Selich's question, Administrative Services Director Danner stated that the Balboa Marina loan will be paid off in 2016 and the water revenue bonds in 2010. He also displayed the significant revenue sources that the department administers and manages. Fire Chief Riley displayed the mission statement for the Fire Department, as also presented in the Resource Allocation Plan. He displayed the department's budget for fiscal years 2005- 06 and 2006 -07, and noted that it indicates a total increase of 5.75% for 2006 -07. He highlighted some of the reasons for this increase. The department consists of six divisions, which include Administration, Fire Operations, Prevention, Emergency Medical Services, Training and Lifeguard Operations. He displayed the budget allocation and staffing for each, noting that the Fire Operations Division represents 65.3% of the department's total budget. He also highlighted the key functions of each division. In response to Council Member Daigle's question, he stated that the new training facility in Santa Ana Heights will reduce the department's training costs because more training will be accomplished in- house. In response to Council Member Ridgeway's question, Fire Chief Riley stated that overtime in the Fire Operations Division costs approximately $2.3 million annually. He summarized the reasons why overtime is utilized and stated that additional details are provided in the budget detail. He also explained when an employee's hours are subject to overtime. In response to Council Member Selich's questions, Fire Chief Riley explained how the department attempts to reduce overtime costs and how vacant shifts are filled. Fire Chief Riley displayed and listed the revenue that is generated in the department. He also displayed and briefly explained the significant program issues in the department. These included professional competency, continued emphasis on emergency preparation and long term facility needs. In response to Council Member Selich's question, Fire Chief Riley stated that the City is as prepared as it can be for emergencies. In response to Council Member Daigle's question, he stated that the department's goal is to reach every part of the City within five minutes or less, 90% of the time. Fire Chief Riley stated that seven new positions were requested by the Fire Department, four of which are included in the budget and include a new Information and Communications Coordinator, and three new Firefighter Paramedic positions. He provided details of the functions that would be performed by the Information and Communications Coordinator, which included the coordination of special department computer and software applications, and coordination with other providers and agencies. He stated that he originally requested six new Firefighter Paramedic positions and three were approved by the City Manager. He explained why they are needed, and provided detailed information on effective staffing levels and the importance of maintaining the Firefighter and Paramedic positions as dual roles. Fire Chief Riley displayed photos and stated that the department operates four different types of equipment in the field. These include command cars, fire engines, ladder trucks and paramedic ambulances. He described the components and functions of each of the different companies. He also displayed and listed the resources needed for fireground operations and Volume 57 - Page 665 City of Newport Beach Study Session Minutes May 23, 2006 first alarm assignments. In response to Council Member Ridgeway's question, Fire Chief Riley stated that no new equipment would be needed for the new positions being requested. It was determined that due to the number of budget presentations remaining, the Study Session on June 13, 2006, would start at 3:00 p.m. Dolores Otting asked the City Council to also consider the construction of new fire stations as a way to improve response time, and she expressed her support for the Fire Chiefs request for six new positions. She also expressed concern for the size of the new ambulances and their ability to make it down all of the streets in the City. Lastly, she suggested that the first item on the Study Session agenda, Clarification of Items on the Consent Calendar, be moved to the end of the agenda. PUBLIC COMMENTS - None ADJOURNMENT at 6:00 p.m. The agenda for.the Study. Session was posted on May 17, 2006, at 2:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building City Clerk Recording Secretary Mayor Volume 57 - Page 666 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting May 23, 2006 — 7:00 p.m STUDY SESSION - 4:00 p.m. CLOSED SESSIOON - 6:00 p.m ,;,;,::. A. RECESSED, AND RECONVENED AT 7:00 P.M. FOR REQULAR MEETING B. ROLL CALL Present: Council Member Curry, Council Member Selich,ziMayor Pro Tern Rosansky Mayor Webb, Council Member Ridgeway, Council "'Member Daigle, Council Member Nichols C. CLOSED SESSION REPORT Assistant City Attorney Harp reported that the Council authorized the execution of the third amendment to the tolling agreement between the City and the Newport Beach Condominium Association which extends the tolling agreementto July 31, 2006. D. PLEDGE OF. ALLEGIANCE - CouncihM'ember Curry' E. INVOCATION - Reverend Karl Stuckenberg, Newport Center United Methodist Church F. PRESENTATIQNS Donation from Friends of the Library - Martin Flink, President of the Friends of the Newport Beach Library, presented a check for $14,213 to the Board of Library Trustees and explained how the Friends raise funds for the library. California Restaurant Association Centennial Proclamation - Mayor Webb presented a proclamation to the President of the California Restaurant Association, Dan Marcheano of the Arches Restaurant. s.. Recognition of Dennis O'Neil as Newport Beach Citizen of the Year for 2006 - Richard Luehrs, Newport Beach Chamber of Commerce President, displayed the plaque which listed the names of the Citizen of the Year recipients since 1949 and Mayor Webb presented former Mayor Dennis O'Neil with a proclamation. National Public Works Week - Mayor Webb presented Public Works Director Badum, General Services Director Harmon, and Utilities Director Antista with a proclamation which proclaimed May 21 to May 27 as Public Works Week. Tree City USA - Glen Barley, California Department of Forestry and Fire Protection, presented Urban Forester Conway and Administrative Analyst Marcarello with the Tree Volume 57 - Page 667 City of Newport Beach City Council Minutes May 23, 2006 City Award and Growth Award on behalf of the National Arbor Day Foundation, the National Association of State Foresters, and the California Department of Forestry and Fire Protection. G. NOTICE TO THE PUBLIC H. 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 Curry discussed his interest in Public Financial Management and its successor, PFM Asset Management LLC. He announced that their agreement has not come before Council since he was seated on Council and that he will recuse himself from any Council decisions related to their agreement. He added that he also has no financial interest in any debt sold by the City and will ask the City not to consider PFM Asset Management's services for any future work related to the reinvestment of any debt proceeds. Council Member Curry noted that tomorrow is the final day for the Appropriations Committee to consider Assembly Bill No. 3007 which relates to drug and alcohol recovery treatment facilities that have more than six units. Council Member Selich reported that the Balboa Island Parade will be held on June 4 at 11:00 a.m. Mayor Pro Tent Rosansky reported on the Relay for Life event held last weekend. Mayor Pro Tent Rosansky reported that Supervisor Silva spoke at a West Newport Beach Association meeting yesterday. Mayor Pro Tom Rosansky and Council Member Nichols congratulated the 15 athletes from Newport Harbor High School and the 15 athletes Corona del Mar High School that received awards from the Newport Beach Chamber of Commerce. Council Member Daigle reported that the City's video streaming was being showcased at the International Institute of Municipal Clerk (11MC) Conference last week. She requested that the Media and Communications Committee look at WiFi for traffic management purposes, noting that Measure M funds may be used. Council Member Ridgeway reported on the construction projects the Orange County Sanitation District (OCSD) is conducting at A street and 15th Street. Mayor Webb displayed a survey the OASIS Senior Center is conducting and reported that people can obtain one at the Senior Center, the Recreation and Senior Services Department, bathe City's website, or by calling 949- 644 -3244. Mayor Webb announced that there are 101 days until the City's 100th birthday and provided Centennial Moments. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS MINUTES OF THE ADJOURNED REGULAR AND REGULAR MEETING OF MAY 9, 2006. (100 -20061 Waive reading of subject minutes, approve as written Volume 57 - Page 668 City of Newport Beach City Council Minutes May 23, 2006 and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCES FOR ADOPTION 3. CONTINUOUS UTILITY SERVICE AGREEMENTS. (100 - 2006x Adopt Ordinance No. 2006 -13 amending Section 14.12.140 of the NBMC aiithorizing continuous service agreements for water and sewer customers. ss!' , 4. PENDRAGON NORTH AMERICA AUTOMOTIVE Il` d"I LAND ROVER NEWPORT BEACH SERVICE CENTER - 2101 DOUG' "STREET); (100 -20061 Adopt Ordinance No. 2006-14 for Code Amendment No. 2004 -012. RESOLUTION FOR ADOPTION 5. RESOLUTION NO. 2006 -38 RELATING TO A, PROPERTY TAX EXCHANGE AGREEMENT FOR THE WEST SANTA, ANA HEIGHTS AND EMERSON TRACT. (100 -20061 Adopt Resolution No. 2006 -38 relating to a Property Tax Exchange Agreement to allocate property taxes after the reorganization of West Santa Ana Heights and reaffirming the City's earlier adoption of Council Resolution No. 2002 -55 relating to the 70 -30 property tax splibfor the Emerson Tract. CONTRACTS AND AGREEMENTS 6. LEGAL PUBLICATIONS FOR ONE -YEAR CONTRACT COVERING FISCAL YEAR JULY 1, 2006 TO JUNE 30, 2007. (321100 -20061 Authorize the City Clerk to publish a notice advertising for bids to be received on or before the hour of 4:00 p.m,, on Friday, June 9, 20061for a one -year contract covering the publishing and printing of legal notices, or other material required to be published and circulated in the City of Newport Beach. 8. NEWPORT THEATER` `'ARTS CENTER LOBBY ADDITION (C -3742) - RFJECT ALL BIDS. 1381100 -20061 1) Reject all bids; and 2) direct staff to combine this project with future building work and rebid at a later date. 10. NON - STANDARD IMPROVEMENTS AT 6707 AND 6709 SEASHORE DRIVE. 1100 -20061 Continued to the June 13, 2006 Council meeting. 11. REQUEST TO CONSTRUCT NON - STANDARD IMPROVEMENTS IN THE PUBLIC RIGHT -OF -WAY - 3431 OCEAN BOULEVARD. 1100 -20061 1) Deny the Owner's request to construct non - standard encroachments, which includes, but not limited to, retaining walls, caissons, landscaping, associated drainage, and appurtenances within the public right -of -way adjacent to the property located at 3431 Ocean Boulevard; and 2) direct staff to prepare an encroachment permit and encroachment agreement for the existing non - standard improvements in the public right -of -way fronting 3431 Ocean Boulevard. 12. AMENDMENT TO THE RESTROOM CLEANING AGREEMENT WITH A -1 SPINELLI ENTERPRISES (C- 3399). 1381100 -20061 Approve the contract amendment for weekend restroom cleaning through October 31, 2006 at a new price Volume 57 - Page 669 City of Newport Beach City Council Minutes May 23, 2006 of $3,508 per month. MISCELLANEOUS 13. BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE FRIENDS OF THE NEWPORT BEACH LIBRARY AND APPROPRIATE FUNDS TO EXPENDITURE BUDGET ACCOUNTS FOR FY 2005/06. [100 -2006] Approve a budget amendment (06BA -070) to increase revenue estimates by $14,213 in Account No. 4010 -5892 (Library - Friends of the Library) and increase expenditure estimates by the same amount in Division 4091 (Friends). 14. WIDE AREA NETWORK UPGRADES (C- 3841). [381100 72006] Approve an agreement by Embee Technologies for hardware and services to •provide 100 MB wireless radio Wide Area Network (WAN) connections,between the;City Hall and Utilities sites and between the Utilities and Corporation Yard sites for total cost of $69,882.20. 15. 2006 -07 PROPOSED BUDGET HEARING; 2006 -07 APPROPRIATION, -LIMIT HEARING. [100 -2006] Schedule a public hearing of the City's Proposed Budget and Appropriation Limit for the 2006 -07 fiscal year on June 13, 2006 at 7:00 p.m. and direct the City Clerk to publish a notice of said hearings. Motion by Mayor Pro Tem Rosan y to approve the Consent Calendar, except for those items removed (7, 9 & 16); and noting the` continuation of Item 10. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway;, Council Member Daigle, Council Member Nichols Without objection, it was the consensus of the City Council to consider Item 21 (Oral Reports from the Facilities Finance Review Committee and the City Hall Site Review Committee) after the pulled Consent Calendar items are discussed. J. ITEMS REMOVED FROM THE CONSENT CALENDAR 7. AUTHORIZATION TO HIRE TELE - WORKS, INC. TO UPGRADE THE CITY'S VOICE RESPONSE AND NOTIFICATION SYSTEMS (C- 3398). [381100- 2006]' Dolores Otting expressed her disappointment that this system was not installed sooner. City Manager Bludau reported that the system can be programmed to call certain areas or the entire City, and it can be emergency specific. Council noted that Fire Chief Riley made a presentation during the Study Session and that the City has been working on disaster preparedness for a long time. Motion by Council Member Ridgeway to 1) authorize the Mayor to execute a professional services Agreement with Tele- Works, Inc. to upgrade the Voice Response System and Emergency Notification System (FirstResponder) which broadcast emergency and routine messages to the citizens of Newport Beach by phone, email; voicemail, fax, text pager and telephone text (TTY /TTD); and 2) approve a budget amendment (06BA -068) transferring $67,500 of appropriations from Revenue Division, Salary Savings account number 0640 -7099, to Computer Equipment, capital outlay account number 0640 -9010. Volume 57 - Page 670 City of Newport Beach City Council Minutes May 23, 2006 0 The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols 9. TRAFFIC SIGNAL UPGRADES FY05 -06 -AWARD OF CONTRACT (C- 3827). [381100 -20061 Dolores Otting expressed her support for the project. Council Member,,curry noted that the signal at the intersection of San Miguel and Spyglass is scheduled to have a left -turn arrow installed. Motion.by Council Member ) Ridgeway to 1 g approve the plans and: specifications; 2) award C -3827 to Freeway Electric for the total bid price of $438,000.00, and authorize the Mayor and the City Clerk to execute the contract; 3) establish an amount of $43,800 (10 %) to cover the cost of unforeseen work; and 4) approve a budget amendment (06BA -069) in the amount of $23,800 from the unappropriated balance of the Transportation and Circulation Fund, 260 -3605, to Account N677261- The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols 16. MITIGATED NEGATIVE ` DECLARATION RELATING TO A WATER QUALITY IMPROVEMENT ;;.PROJECT ( "OLOID PROJECT") AROUND NEWPORT ISLAND (C- 3730). [381100 -20061 Ben Anderson, President of the Newport Island Board of Directors, reported that they unanimously oppose the ; oloid project, believed that no one was notified of tonight's meeting, and requested a continuance. In response to Council questions, Assistant City Manager Kiff concurred with allowing more time for notification and indicated that staff is also skeptical of the technology but wanted to do something to help the water quality problems around Newport Island. Council Member Curry requested that the next report discuss possible noise issues that may occur due to the oloid project. Motion_ by Council Member Ridgeway to continue the item, provide more notification to the area residents, and bring back the item for a public hearing on June 27. 2006. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols CURRENT BUSINESS 21. ORAL REPORTS FROM THE FACILITIES FINANCE REVIEW COMMITTEE Volume 57 - Page 671 City of Newport Beach City Council Minutes May 23, 2006 AND THE CITY HALL SITE REVIEW COMMITTEE. [351100 -20061 Facilities Finance Review Committee Steve Frates, Chairman of the Facilities Finance Review Committee, highlighted his background and utilized a PowerPoint presentation to discuss the recommendations for a long term facilities finance plan. He also displayed a facility replacement planning worksheet, the construction expenditures compared to the net general fund debt service budget, the general fund appropriations, and a chart of the facilities replacement fund. He emphasized that the fund will continue to be replenished in order to assist future generations in its facility replacement needs, but is very flexible to adjust to the changing times. He thanked the Committee members, staff, and the Council Members on the Committee for their assistdnce. He ,confirmed that the recommendations from the Committee were adooted unanimouslvf.. In response to Council questions, Administrative Services Director Danner clarified that the reserve for the facility replacement° fund will never exceed 4.5% of the general fund revenues. Chairman Fratesindicated that the Committee didn't look at charging new developments a facilities improvement fee but looked at the overall revenue fund. He likened the facilities replacement fund to a shock absorber in that, as the Certificate of Participation (COP) is paid off, the fund is replenished with less than 50A of the general fund: He stated that, in his professional opinion, this is a fiscally prudent plan that provides - infrastructure to the citizens of Newport Beach. Council Member Ridgeway indicated ;that it is not unreasonable to have a facilities fee as long as the facility benefits the homes near the improvement. Council Member Curry emphasized; that this is A 15 year strategy to address the City's major facilities infrastructure. He believed that the plan is among the most conservative in the country in terms of the level of debt and the ratio of debt relative to the budget. He added that the use of the reserve fund to stabilize the general fund ensures that the net out of pocket general fund impact will be less than the cost of the COP debt service. In response to City Manager Bludau's questions, Chairman Frates confirmed that the City can afford a new City Hall and its identified facility needs over the next 20 years. Ed Romeo, President of Friends of OASIS, reported that 8,000 to 9,000 people visit this facility a month and requested that Council consider moving the OASIS replacement higher on the priority list. Charles Griffin suggested that this be put to a vote. Evelyn Hart, Friends of OASIS, believed that the Senior Center needs immediate attention and reported that the OASIS Board requested that the Senior Center become a top priority. Mayor Webb indicated that the facility priorities will be discussed at a future meeting. Dolores Otting commended the Committee and staff, but believed that this should go to a vote. She suggested using the $14 million to rebuild two fire stations now rather than go into debt since the City has money in its reserves. She noted that the Volume 57 - Page 672 City of Newport Beach City Council Minutes May 23, 2006 K. cost estimates are only for construction, not furnishings. City Hall Site Review Committee Larry Tucker, Chairman of the City Hall Site Review Committee, reviewed his background and utilized a PowerPoint presentation to review the Committee's mission statement, discuss the public outreach program, and highlight which sites were reviewed. He reported on which sites were geographically unsuitable, which were technically /practically infeasible, and which sites t0 owners were not willing to sell or had existing leases. He pointed out that Lhe remaining sites for further consideration included the Police/Fire Station site with an adjoining joint use parking structure, the Corporate Plaza West site, ,aAlihe existing City Hall site, and reported on the cost considerations and othE`factoi'a. involved with these sites. He stated that the Committee recommends tfi`at Councih y look at the Corporate Plaza West site and the existing City Hall site for further consideration. Council Member Ridgeway suggested that both the reports be agendized or have the City Hall Site Review Committee report:sent to.the Building Ad Hoc Committee because the City needs to move forward', with the information presented `since interest rate costs and construction costs are going up. Charles Griffin suggested putting a new City Hall in the Airport Area since that area is decaying but is a convenient location for the City. Bill Ficker discussed his handout that.expressed his reasons for considering the park site above the Central Library for the new City Hall. Council Member Ridgeway.,recommended that Mr. Ficker meet with Stop Polluting Our Newport (SPON)'and Earth Resources Foundation to convince them that his plan has merit. City Manager Bludau received confirmation from Council that the Facilities Finance Review Committee report will be forwarded to the Council Finance Committee and the City Hall Site Review Committee report will be forwarded to the Building Ad Hoc Committee °'and then those Council Committees will bring back a report to Council with recommendations. Council Member Curry suggested that the City Manager work with the Department Directors to determine the priority for the facilities. PUBLIC HEARINGS 17. SOBER LIVING BY THE SEA - USE PERMIT NO. 2005 -031, OFFSITE .PARKING AGREEMENT NO. 2005 -005 (C- 3836), MODIFICATION PERMIT NO. 2005 -133 - 2811 VILLA WAY (PA 2005 -136). [381100 -20061 Council Member Ridgeway recused himself since the facility is adjacent to his property. Motion by Mayor Pro Tem Rosansky to continue the public hearing to the June 27, 2006 Council meeting. Mayor Webb opened the public hearing. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Volume 57 - Page 673 City of Newport Beach City Council Minutes May 23, 2006 Mayor Webb, Council Member Daigle, Council Member Nichols Abstain: Council Member Ridgeway 18. GENERAL PLAN UPDATE: LAND USE AND CIRCULATION ELEMENTS, IMPLEMENTATION PROGRAM AND DRAFT ENVIRONMENTAL IMPACT REPORT. (681100 -20061 Airport Area Council Member Ridgeway recused himself from Airport Area discussions since he has a conflict of interest. Assistant City Manager Wood reported that, at the last meeting, ethe - direction was to leave the Conexant property as an industrial designation and allow 2;200 residential units with 550 additive units only on properties with existing amenities. She stated that Conexant provided a handout that shows their interest in creating residential development. She suggested, in order to provide that,6pportunity and still remain trip - neutral, that the Conexant property be designated as mixed -use and keep the number of residential units at 2,200 with 550 additive units allowed only on the eastside of MacArthur Boulevard. She reviewed a proposed policy that would keep the City trip neutral. In response to Council Member Nichols' questions, Woodie Tescher, EIP Associates, indicated that the entire residential area is within the 60 Community Noise Equivalency Level (CNEL) line. Council Member Daigle concurred with the Planning Commission recommendation to add policy language that requires development agreements for additive units. Assistant City Manager Wood suggested creating a policy earlier in the General Plan Update rather than just in the Implementation Program in the back. Council Member Selich expressed his support for what was presented and for creating a development agreement policy. Dolores Otting stated that there were no staff reports left on the lobby table Charles Griffin believed that the Airport Area is inappropriate for residential development. Mayor Pro Tern Rosansky expressed support of the proposed changes to achieve the goal of reducing trips. Council Member Daigle requested that the Campus tract be revisited in order to receive the definition of an airport- office use category. She asked that staff solicit input from Dennis O'Neil since he has concerns about the parcel at Campus and Jamboree. Balboa Peninsula Woodie Tescher, EIP Associates, utilized a PowerPoint presentation to explain the Planning Commission's recommendations for Areas A and B that will create an overall trip reduction of 5,000 compared to the EIR and 3,200 less trips than the existing General Plan since commercial zones are being redesignated for residential use. Carlton Waters, Urban Crossroads, indicated that the density changes have little effect on trip generation in this area. Council Member Ridgeway recommended Volume 57 - Page 674 City of Newport Beach City Council Minutes May 23, 2006 using a Floor Area Ratio (FAR) of 2.0 in Area A. Following discussion, it was the consensus of Council to leave the FAR at 1.5 with the option to discuss it further at a later date. Further, for Area B, Council directed staff to use the density of 20 units per acre. Council Member Ridgeway announced that he cannot participate in discussions for Areas C and G because he has a conflict of interest since he owns property in Area F. Regarding the Cannery Village Area (Areas C and G), Mr. Tescher Planning Commission made no changes to Area C. He reported th; Planning Commission and staff recommends that the area %vl north of 32nd Street be redesignated as neighborhood- commerd of .75 and the area south of the boulevard be redesignated commercial. He stated that the net results don't change from the this still equates to almost 4,000 trips less than the existing C added that the Planning Commission also; re'cc south of 32nd Street to mixed use with_?an FAR indicated that staff recommended an FAR<q£ .5:. i she doesn't support residential units on Balboa. Bc igxTf d that the or Area G, the City Hall and with an FAR model, but Plan. He - -the area Planning DirectorjTemple Member Daigle stated: that Following discussion, it was the consensus of Council to redesignate the area north of 32nd Street as neighborhood - commercial with an FAR of .75 and redesignate the area south of the boulevard as visitor--serving commercial with an FAR of .5. Regarding the McFadden Square Area (Areas.E and F), Mr. Tescher clarified that the mixed use had not been inputted into the traffic.model and that this adds almost 1,000 trips to the area. He reviewed the Planning Commission recommendation to reduce the FAR to 1.25 which. -would result in an increase of trips from the existing General Plan for this section. However, he reported that there is still a net reduction for the Balboa Peninsula Area of about 6,400 trips. It was the consensus of 'Council to support the Planning Commission's recommendations. Charles Griffin believed that the ocean is going to rise 20 feet in the next 70 years and asked where the City is going to build the levies. Balboa Village Mr. Tescher stated that the Planning Commission recommended that, for Area A, the future site of the Newport Nautical Museum be redesignated as private institution and, for Area B, keep it visitor serving commercial and mixed use, which results in 123 fewer trips than the existing General Plan. Council Member Ridgeway reported that the City parking lot is being master planned to be one public /private parking structure on two parcels. In response to Council questions, Assistant City Manager Wood confirmed that the Pavilion is over water and has no zoning designation. Mr. Tescher noted that, for mixed uses, the FAR is 1.5 with a .35 to .5 FAR for non - residential purposes and an Far of .25 to .75 for non - residential purposes. It was the consensus of Council to follow the Planning Commission's Volume 57 -Page 675 City of Newport Beach City Council Minutes May 23, 2006 recommendation. 15th Street/Balboa Boulevard Mr. Tescher explained the Planning Commission's recommendation to redesignate the parcels to mixed use but allow the corner parcels to remain commercial development. It was the consensus of Council to follow the Planning Commission's recommendation. West Newport Highway Mr. Tescher reported that there is a net increase of 800 trips, over the existing General Plan. Prior to discussing Russell Fluter's request, relative to 6100 West Coast Highway, Mayor Pro Tem Rosansky reported a opnflict of interest since his office is located there. Mr. Tescher stated that Mr., Fluter asked to redesignate an area of the parcel to residential but keep commercial along Coast Highway, but it is the Planning Commission and staffs recommendation to retain the commercial designation on the entire property. It was the consensus of the City Council to ;support the Planning Commission and staffs recommendation. Corona del Mar Mr. Tescher reviewed the staff recommended technical changes to Sherman Gardens, the Crown Cove Senior Care Community, Galleo's and the vacant lots at 3900 -3928 East Coast Highway. He .noted that these changes result in a net reduction of about 2,200 trips. It was confirmed that the FAR will remain the same. Council requested that the property owners of Galleo's and the vacant lots be notified that a designation change is being considered. Dolores Otting received clarification that Galleo's and the vacant lots are being considered for redesignation to residential use for up to 20 units per acre and that a designation of private institution permits 4.9 trips per unit- It was the consensus of Council to follow staffs recommendations if the property owners don't object. Implementation Program Assistant Manager Wood noted that the Planning Commission is recommending that development agreements be required for additive residential units in the Airport Area and Newport Center Area. She believed that Council previously gave staff direction to allow residential uses in Newport Center due to the reduction of existing entitlement that The Irvine Company was willing to make. She reported that the reduced entitlement that they agreed to is vested in a number of development agreements that will need to be amended. It was the consensus of Council to direct staff to add a policy regarding development agreements. Council Member Selich indicated that he attended a Balboa Island meeting to discuss redesignating them from two units per lot to one unit per lot, and reported Volume 57 - Page 676 City of Newport Beach City Council Minutes May 23, 2006 that Balboa Island wishes to keep its current designation. L. PUBLIC COMMENTS Louise Fundenberg expressed a need for trash pickup for large items and hazardous items. City Manager Bludau indicated that picking up hazardous items is very complicated. Mayor Pro Tem Rosansky and Council Member Ridgeway believed that there should be a way to dispose of large items at least once a month, and requested that a report be brought back to Council. Dolores Otting asked citizens to vote for her and Dick Nichols for the 70th Assembly District County Central Committee during the June election. She also discussed how the residents aren't prepared for emergencies. She emphasized how unsafe the intersection at San Miguel and Spyglass Hill is and asked why this project is going out to bide M. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES'-`.None N. PLANNING COMMISSION AGENDA AND ORAL, STATUS REPORT None 19. PLANNING COMMISSION AGENDA FOR MAY 18, 2006. [100 -2006) O. CONTINUED BUSINESS 20. CONTRACT FOR THE BIG: CANYON CREEK RESTORATION PROJECT - PHASE 11 (ENGINEERING, DESIGN, PERMITTING, AND FINAL CONSTRUCTION DOCUMENTS) (C- 8593). [381100 -2006) Council Member Ridgeway recused himself because he owns property adjacent to the site. ' Motion by Council Member_ Curry to 1) authorize the Mayor to sign a professional services agreement with WRC Consulting Services in an amount of $698,595.: to .conduct design, engineering, permitting, and the preparation of construction documents .for the Big Canyon Creek Restoration Project; and 2) authorize: the City Manager or his designee to approve any change orders to the W.RC Consulting Services contract provided that such change orders do not exceed 10% ($70,000) of the contract cost and provided that previous budget authorization for such expenditure exists. In: response to Council Member Nichols' questions, City Manager Bludau and Assistant City Manager Kiff clarified that the contract is for plans, not to conduct the project; the State wants to see the design specifications before issuing the grant; and the City will need to continue the upkeep since the Big Canyon Nature Park is the City's responsibility. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Daigle Abstain: Council Member Ridgeway, Council Member Nichols P. CURRENT BUSINESS (contd) 22. RESOLUTION NO. 2006 -39 RELATING TO THE FORMATION OF A CITY Volume 57 - Page 677 City of Newport Beach City Council Minutes May 23, 2006 COUNCIL AD HOC COMMITTEE ON LEGISLATIVE ADVOCACY. [100- 2006] Motion by Mayor Pro Tem Rosansky to 1) adopt Resolution No. 2006 -39 forming the City Council Ad Hoc Committee on Legislative Advocacy; and 2) confirm the Mayor's appointments of Mayor Webb, Mayor Pro Tem Rosansky, and Council Member Curry to the Committee. Dolores Otting requested and received clarification that the Ad Hoc Committee will not be subject to the Brown Act and that its term expires December 31,.,2006. Council discussed how legislative advocacy has been handledin the past and received confirmation that the Committee's recommendations for its legislative platform goes before Council for public discussion and Council approval, The motion carried by the following roll call vote Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle Noes: Council Member Nichols 23. ESTABLISHMENT OF AN AD HOC COMMITTEE FOR NEGOTIATING AN AMENDMENT TO THE HOAG HOSPITAL DEVELOPMENT AGREEMENT. [100 -2006] Motion by Council Member Curry to 1) adopt Resolution No. 2006 -40 creating an Ad Hoc Committee for negotiating an amendment to the Hoag Hospital Development Agreement to consist of two (2) Council Members; and 2) confirm the Mayor's appointments of Mayor Pro Tem Rosansky and Council Member Selich to the Committee. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols 24. RESPONSE TO THE STATE WATER RESOURCES CONTROL BOARD (SWRCB) REGARDING THE NEWPORT BEACH MARINE LIFE REFUGE AREA OF SPECIAL BIOLOGICAL SIGNIFICANCE (ASBS). [100 -2006] Motion by Council Member Ridgeway to 1) direct City staff to submit all relevant data to the State Water Resources Control Board (SWRCB) relating to the Newport Beach MLR ASBS and the Irvine Coast MLR ASBS; 2) authorize the Mayor to write a letter to the SWRCB stating the City's interest in working within the SWRCB's Exception Process for the Newport Beach MLR ASBS provided that the City's participation leads to an outcome within the Exception Process is reasonable and attainable; and 3) authorize City staff to work with other communities adjacent to ASBSs regarding ways to protect ASBSs from adverse discharges even if such discharges do not meet the so- called "zero- molecule" (of pollutants) rule. In response to Council Member Nichols' questions, Mayor Webb clarified that the City is asking for an exception and for the SWRCB to be reasonable, knowing that there are State regulations the City must follow. Assistant City Manager Kiff added Volume 57 - Page 678 City of Newport Beach City Council Minutes May 23, 2006 that the City is already paying for much of the monitoring costs associated with assisting Pelican Point in the installation of a storm drain -to -sewer diversion. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Mayor Webb, Council Member Member Nichols Q. MOTION.FOR_ RECONSIDERATION Member Selich, Mayor Pro Tem Rosansky, Ridgeway, Council Member Daigle, Council Motion by Council Member Ridgeway to reconsider Item 11 The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Memberi Nichols 11. REQUEST TO CONSTRUCT NON-STANDARD IMPROVEMENTS IN,TIIE PUBLIC RIGHT -OF -WAY - 3431 OCEAN BOULEVARD. (100 -20061 Lawrence Tabak, property owner, stated that; after six years, he still doesn't have a building permit and believed that he has an ..approval in concept from General Services and Gil Wong of Public.W4rks. He indicated that the cars cannot be backed out of the garage with the existing retaining wall and the new entrance cannot be accessed without the proposed encroachments. He painted out that the City built a manhole and sewer line on his property and stated thaf he would grant the City an easement forthis work if he received cmcessions orihis encroachments. Public Works Director Badum noted that Mr. Wong could not authorize these types of encroachments. He reported that Council already allowed the new building to encroach into the front yard setback. He pointed out that the City has never allowed gates'because,:it's, a public right -of -way and that the area adjacent to his entry is Inspiration Point. Regarding the retaining wall, he stated that the City wouldn't object to have them redone but what was proposed is more intrusive into the public right -of -way: He emphasized that Mr. Tabak's proposed changes would give the impression of a private compound. He confirmed that the sewer manhole is located on the beach portion of his property, the City may want to relocate the line but doesn't have to since it has been there since 1999, it is not part of the usable property, and there is no connection between this issue and the requested encroachments. Mayor Webb pointed out that the City already granted Mr. Tabak an encroachment into the front yard setback and that it is unreasonable to design the property to further encroach into the public right -of -way. He noted that approvals in concept go to the Coastal Commission. Council requested that staff work with Mr. Tabak and come back with an update. Motion. by Mayor Webb to continue the item to the June 13, 2006 Council meeting. The motion carried by the following roll call vote: Ayes: Council Member Curry, Council Member Selich, Mayor Pro Tem Rosansky, Volume 57 - Page 679 City of Newport Beach City Council Minutes May 23, 2006 Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols R. ADJOURNMENT - at 11:50 p.m. to 3:00 p.m. on Tuesday, June 13, 2006. The agenda for the Regular Meeting was posted on May 17, 2006, at 2:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 57 - Page 680