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HomeMy WebLinkAbout01 - MinutesAugust 10, 1998 Agenda Item No. 1 CITY OF NEWPORT BEACH City Council Minutes ®R w H Fj Regular Meeting July 27, 1998 - 7:00 p.m. INDEX CLOSED SESSION - 5:00 p.m. [Refer to separate agenda from City Attorney] CLOSED SESSION REPORT PRESENTED — None RECESSED AND RECONVENED AT 7:00 P.M. FOR REGULAR MEETING ROLL CALL Present: Thomson, Debay, O'Neil, Hedges Glover, Noyes, Mayor Edwards Absent: None Pledge of Allegiance — Council Member Debay. Invocation by Mr. Michael Mooslin, First Church of Christ Scientist. MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM • Council Member Noyes announced that a community meeting will be held at 7:00 p.m. on Tuesday, August 4, 1998 in the Corona del Mar High School gymnasium. The meeting is being held to discuss the future of traffic changes at the intersection of Jamboree Road and Bison Avenue. • Council Member Hedges addressed the problems of quadracycles and tricycles on the boardwalk and the hazards they create on the street. He questioned whether the vehicles can be impounded and addressed concerns about them operating on public streets after dark without lights. He requested that the Police Department step up enforcement on these vehicles using existing manpower. • Mayor Pro Tern O'Neil reported on the success of the triathlon held on Sunday at Crystal Cove State Park. He noted that some of the proceeds will be used to support the Junior Lifeguard program. • Council Member Debay requested a report from staff on what the County used to do in reference to beach maintenance and marine safety. She said she would like the City to set a goal to work with the County to get some of the funds reinstated in order to keep the beaches clean and open. • Council Member Thomson reported that the Newport Beach Quakes finished 5th overall in the competition at Cooperstown, New York out of a field of 47 teams. • Mayor Edwards reported on the dedication of Castaways Park and Volume 52 - Page 122 City of Newport Beach City Council Minutes July 27, 1998 complimented Council Member Glover and the Public Works staff for putting together a great passive park. He indicated that he has also received requests from people interested in dedicating benches for the park. Mayor Edwards reiterated the information about the community meeting scheduled for August 4, 1998 to discuss the future of the traffic changes at the intersection of Jamboree Road and Bison Avenue. Director of Public Works Webb indicated that information will be mailed to the public on Tuesday or Wednesday and information will be available at the Public Works counter on Wednesday. Mayor Edwards complimented Council Member Glover regarding the article about her in The Orange County Woman regarding the El Toro airport issue. Mayor Edwards reported that the Junior Nationals won the International Water Polo Championship over the weekend. CONSENT CALENDAR READING OF MINUTES /ORDINANCES AND RESOLUTIONS 1. MINUTES OF THE REGULAR MEETING OF JULY 13, 1998. Waive reading of subject minutes, approve as written and order filed. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCES FOR ADOPTION 3. AMENDMENT TO NEWPORT PLACE PLANNED COMMUNITY DISTRICT REGULATIONS (PLANNING COMMISSION AMENDMENT NO. 875) TO PERMIT BUSINESS AND TRADE SCHOOLS WITHIN PROFESSIONAL AND BUSINESS OFFICE SITE 3A, SUBJECT TO THE APPROVAL OF A PLANNING DIRECTOR'S USE PERMIT. Adopt Ordinance No. 98 -16. 4. AMENDMENT TO FRONT YARD SETBACKS ON BROAD STREET (PLANNING COMMISSION AMENDMENT NO. 873) - AN AMENDMENT TO DISTRICTING MAP NO. 5 TO ESTABLISH A FRONT YARD SETBACK OF 20 FEET FROM THE NEWLY ESTABLISHED PROPERTY LINES LOCATED BETWEEN SANTA ANA AVENUE AND REDLANDS AVENUE ON BOTH SIDES OF BROAD STREET. Adopt Ordinance No. 98 -17. 5. Ayes: Thomson, Debay, O'Neil, Hedges, Noyes, Mayor Edwards Noes: None Absent: None Abstain: Glover INDEX Ord 98 -16 PCA 875 Newport Place Planned Community (94) Ord 98 -17 PCA 873 Front Yard Setbacks on Broad Street (94) ESTABLISHMENT OF FEES FOR APPEALS TO THE PLANNING I Ord 98 -18 COMMISSION AND CITY COUNCIL. Adopt Ordinance No. 98 -18 Res 98 -52 Volume 52 - Page 123 City of Newport Beach City Council Minutes July 27, 1998 amending Chapter 3.36 of the Newport Beach Municipal Code to establish revised percentages of service cost recovery for appeals to the Planning Commission and City Council at 50% of the cost of providing the service; and adopt Resolution No. 98 -52 to adopt fees for appeals to the Planning Commission and City Council consistent with the Ordinance. RESOLUTIONS FOR ADOPTION 6. NEWPORT CENTER DRIVE PARKING TIME LIMITS - ADOPTION OF RESOLUTION NO. 98 -53 LIMITING THE PARKING OF VEHICLES ON CERTAIN STREETS AND RESCINDING RESOLUTION NO. 97 -84. Adopt Resolution. ADOPTION OF RESOLUTIONS OF APPROVAL FOR LOCAL COASTAL PROGRAM AMENDMENT LCP NO. 48 AND RESUBDIVISION NO. 1033 (3312 -3336 VIA LIDO) AND LCP NO. 50 (BAY SHORES INN) TO INCORPORATE FINDINGS REQUIRED BY THE CALIFORNIA COASTAL COMMISSION. Adopt Resolution No. 98 -54 for LCP No. 48, Resolution No. 98 -55 for LCP No. 50, the findings and conditions for Resubdivision No. 1033. 8. RESOLUTION NO. 98 -56 ACCEPTING THE DEDICATION OF LOT R AND A PORTION OF LOT S IN TRACT NO. 15012 (CASTAWAYS TRACT). Accept the Offer of Dedication of Lot R and a portion of Lot S of Tract No. 15012 Upper Castaways Bluff Top Trail and Passive Park site and authorize the City Manager and City Clerk to accept the Offer of Dedication of Lot R and a portion of Lot S of Tract No. 15012; and direct the City Clerk to have the Offer of Dedication recorded in the Office of the Orange County Recorder; adopt the Resolution accepting the dedication of Lot R and a portion of Lot S of Tract No. 15012; and direct the City Clerk to have the Resolution recorded in the Office of the Orange County Recorder after the Offer of Dedication has been recorded. CONTRACTS AND AGREEMENTS 9. COMPLETION AND ACCEPTANCE OF BAY AVENUE PARKING LOT REHABILITATION (C- 3187). Accept the work; authorize the City Clerk to file a Notice of Completion; and authorize the City Clerk to release the bonds 35 days after the Notice of Completion has been recorded in accordance with applicable portions of the Civil Code. 10. APPROVAL OF SUBDIVISION AGREEMENT FOR RESUBDIVISION NO. 1043 LOCATED SOUTH OF BONITA CANYON DRIVE, EAST OF PRAIRIE ROAD AND NORTH OF FORD ROAD. Approve a subdivision agreement guaranteeing completion of the public improvements required with Resubdivision No. 1043; and authorize the Mayor and the City Clerk to execute the agreement. 11. Removed from the Consent Calendar by a member of the audience (Tom Hyans). Volume 52 - Page 124 INDEX Planning Commission/ City Council Appeal Fees (40) Res 98 -53 Newport Ctr Dr Parking Time Limits (85) Res 98 -54 Res 98 -55 Bay Shores Inn LCP 48 LCP 50 (84) Res 98 -56 Castaways Tract (62/68) C -3187 Bay Ave. Parking Lot Rehabilitation (38) Resub 1043 (84) City of Newport Beach City Council Minutes July 27, 1998 MISCELLANEOUS ACTIONS 12. PLANNING COMMISSION AGENDA FOR JULY 23, 1998. Receive and file. 13. BAYFRONT ENCROACHMENTS IN WEST NEWPORT BAY CHANNELS ADJACENT TO 400 CLUBHOUSE DRIVE. Continued for 30 days at the request of the applicant. 14. NEWPORT BAY PROJECTS /FUNDING UPDATE. Receive and file report from Council Member Glover. 15. INCOME PROPERTIES DISPOSITION (contd. from 6122198). Continue to August 10, 1998. 16. GENERAL LIABILITY EXCESS INSURANCE RENEWAL. Approve the renewal of the excess general liability insurance coverage with ICW for $255,000 per year in premium for 2 years beginning FY 1998.99. 17. ASSEMBLY CONSTITUTIONAL AMENDMENT (ACA) 42 AND STATE LEGISLATIVE UPDATE. Receive and file report. Motion by Mayor Pro Tern O'Neil to approve the Consent Calendar, except for the item removed (11). Council Member Glover requested that the Council read the report on the Newport Bay funding and also registered an abstention on Item #4. Without objection, the motion carried by acclamation. ITEMS REMOVED FROM THE CONSENT CALENDAR 11. MEMORANDUM OF UNDERSTANDING — NEWPORT BEACH MARINE SAFETY OFFICERS ASSOCIATION. Tom Hyans stated that there is a need for a change in the way the City provides for public services. He said that since the Fire and Marine Departments were combined, the Marine Safety personnel benefit from decades of experience gained in labor negotiations by the California State Fireman's Association. He said the 100 or so line firemen in Newport Beach, who are almost equally divided in the hierarchy of four groups — Captains, Engineers, Paramedics, and Firefighters — cost the taxpayers of Newport Beach over $100,000 each in base salary and paid benefits, excluding other perks and compensatory time. With this contract the Marine Safety personnel will receive the same percentage increases granted to Fire Unit employees and some senior positions will receive a retroactive bonus of 10% of nearly a years salary and overtime. Supervisors will see an increase of 65% in the differential between their salary range and that of their immediate subordinates. He gave a sampling of proposed salaries and benefits and pointed out some of the fringe benefits. They are provided up to $1500 per year additional for cumulative college credits, which don't necessarily have to apply to the job they are occupying. They receive flex leave of 3.2 weeks after one year to a maximum of 6.2 weeks; vacation leave of 4.4 weeks to the maximum of 9.2 weeks; and 12 paid holidays, etc. He noted that 65% of the City's operating budget goes to salaries and benefits Volume 52 - Page 125 INDEX Planning (68) Encroachment/ 400 Clubhouse Dr (65) Newport Bay (51) No Report General Liability Excess Insurance Renewal (47) ACA 42 /State Legislation (48) C -2058 Marine Safety Officers MOU (38) City of Newport Beach City Council Minutes July 27, 1998 and 50% of the employees are in the public safety divisions, which are essentially untouchable. He said it is no wonder that Council Member Noyes discovered that what is left over for repair and maintenance has the City in a state of crisis. After this, he said he hopes the Council rethinks the municipal organization and financing top to bottom. Motion by Mayor Pro Tem O'Neil to approve the MOU between the City and the Marine Safety Officers Association which covers the period from January 1, 1998 through June 30, 1999. Council Member Hedges said that he thinks what is remarkable about this agreement is that it is unremarkable in the context of public safety type agreements. He said it is not unusual to see this type of thing. He noted that unfortunately the first time the public gets a look at these MOU's is when they are presented to the public in a completed form at the conclusion of negotiations which are discussed in closed session. Therefore, the public is deprived of the benefit of the give and take and opinions expressed by individuals on the City Council. He said he did not realize that an agreement had been reached to cut substantial lump sum checks to these employees. He said he doesn't believe the Council pushed, on behalf of the taxpayer, hard enough for alternative methods of providing the same services (contracting with other cities, looking to the private sector for these services, etc.), and now it is nearly impossible to do that because they have been successfully integrated into a public safety function. With Council Member Hedges dissenting, the motion carried. PUBLIC COMMENTS Charles Griffin, 732 Bison Avenue, provided the City Council with information that he provided to the Board of Supervisors regarding alternative plans for runways at El Toro and asked for their support in promoting this. He said this alternative plan would be more acceptable for residents to the south and east of the airport and noted that the present plan and layout of the runways is a derivative of the existing layout. He reviewed the runway separation requirements and justification for them. He also provided an analysis to Council and noted that if the layout plan is not approved than airport grant funds will not be available from the FAA. PUBLIC HEARINGS 18. AMENDMENT TO REVISE SECTION 20.67.035(B) OF THE NBMC TO RE -ADOPT POLITICAL SIGN REGULATIONS (AMENDMENT 874). Mayor Edwards opened the public hearing, and hearing no testimony, closed the public hearing. Motion by Council Member Debay to introduce Ordinance No. 98 -19 for Amendment 874, and pass to second reading on August 10, 1998. Without objection, the motion carried by acclamation. Volume 52 - Page 126 INDEX Ord 98 -19 PCA 874 Political Sign Regulations (68) City of Newport Beach City Council Minutes July 27, 1998 19. BRECKENRIDGE GROUP (JOHN GANTES, APPLICANT) - 5180 BIRCH STREET - PROJECT INVOLVES THE APPROVAL OF AN AMENDMENT TO THE KOLL CENTER PLANNED COMMUNITY DEVELOPMENT REGULATIONS TO ALLOW ADDITIONAL RESTAURANT USES IN OFFICE SITE "G" AND TO PERMIT EATING AND DRINKING ESTABLISHMENTS THROUGHOUT THE KOLL CENTER PLANNED COMMUNITY AS PER TITLE 20 OF THE NBMC; ALSO INCLUDES CONSIDERATION OF AN APPEAL OF THE DECISION OF THE PLANNING COMMISSION'S APPROVAL OF A USE PERMIT FOR THE ESTABLISHMENT OF A TAKE -OUT RESTAURANT USE AS SPECIFIED IN THE KOLL CENTER PLANNED COMMUNITY TEXT WITH A WAIVER OF A PORTION OF THE REQUIRED PARKING SPACES AND THE APPROVAL OF A TRAFFIC AND PARKING DEMAND STUDY [USE PERMIT NO. 3635, TRAFFIC STUDY NO. 116, PLANNING AMENDMENT NO. 8761. City Manager Murphy pointed out that the Council received a supplemental staff report which suggests that traffic study condition 2 be modified. He explained that the fee is the percentage of the construction of the improvements called out in the traffic study for the intersection of MacArthur and Jamboree. He noted that the staff report explains the relative contribution as it relates to the improvement at that intersection and this is the percentage of the number of trips related to the dollars required to do the improvement. The $5,000 ceiling is the fair share contribution by the developer. Public Works Director Webb explained that it is estimated that the costs of the improvements will be approximately $500,000 and this would be roughly 1% of the costs. Planning Director Temple further explained that the condition as originally imposed by the Planning Commission would have provided for the Traffic Engineer to assess the rough proportionality and to come up with a proportional fee. The applicant, after that action, asked staff to come up with some parameters around which that determination would be made and requested that there be a not -to- exceed number included. The City Traffic Engineer looked at the possible cost and came up with a range between $3,960 and $6,600 and he recommended that the proportional fee of 1.32% be assessed, but that it not exceed $5,000. She noted that $5,000 was selected as the not -to -exceed amount because it was about half way in the range. Mayor Edwards opened the public hearing. Timothy Strader, 840 Newport Center Dr., Suite 420, explained that he was the original representative at Koll Center Newport in 1972 when the original PC text was adopted by the City. He said he is also a representative and owner of Koll Center Newport A. He noted that when he purchased the land it had the Carrows Restaurant on it with 7500 square feet in one building. The City required 75 parking spaces at that time or approximately 1 per 100. To put it into perspective, he said they are reducing the intensity of use down to 5400 square feet, so if the formula were 1 per 100 they would be providing 54 spaces, but they are really providing 63 spaces, as required by Volume 52 - Page 127 INDEX Ord 98 -20 PCA 876 UP 3635 Koll Center Planned Community/ 5180 Birch St. (94) City of Newport Beach City Council Minutes July 27, 1998 INDEX the City. If you take the reduction in intensity of use from 7500 square feet it is really a 27% reduction. He submitted that a drive - through restaurant requires fewer parking spaces than a full sit -down restaurant. He pointed out that he included a letter with the staff report indicating that he looked into the complaints of the Wienerschnitzel made at the Planning Commission meeting and submitted a minute excerpt from February 10, 1983 where Wienerschnitzel requested a reduction of 29 parking spaces for their location when they were adding 850 square feet. He said that they submit that the problems that exist on the site with one of the owners, who originally indicated he wasn't going to oppose their proposal, is because of the waiver granted to Wienerschnitzel. He said the Wienerschnitzel site is designed so that the stacking from their drive - through interferes with the parking for Mr. Horning's office building. He also noted that they have controlled parking since they own their own separate parcel and they have their own gate. They indicated that in the past they have utilized the gate to prevent people from Wienerschnitzel from parking in their parking lot. He pointed out that the Council also received a letter from Rockwell Semiconductor wherein they take issue with the parking reduction. He stated that the experts hired by the City to do the study have set forth their conclusions based on an extensive study. There was no extensive study for the Wienerschnitzel waiver, but simply a letter from them. On behalf of the Breckenridge group, he said they are willing to accept the staff recommendations. He stated that the request for the not -to- exceed number is so that Mr. Breckenridge can get his loan in order to finance this operation. In response to Council Member Debay, he stated that the Planning Commission looked at the concerns raised by Mr. Horning, and the project has been redesigned. He further noted that the Planning Commission had some concerns about the speed of traffic that has been observed. Based on that, he talked to the developer who has agreed to install speed bumps. He stated that the best way to fix Mr. Horning's problem is to require Wienershnitzel to redesign because they are his problem since they are right in front of his office building. Jim Caulfield, Galardi Group, 4440 Von Karman Avenue, franchiser of the Wienerschnitzel restaurant group and the tenant of the subject property, stated that they are opposed to a major competitor locating next to them because a competitor the size of a Burger King would damage their business. He said they have operated the Wienerschnitzel there for 20 years and their experience has been that whenever a competitor comes into the area, their business goes down. He said that, however, if it were only a Burger King that were locating on this property, they probably wouldn't have a basis for being here. If there were not the second restaurant, the amendment to the development agreement would not be required which allows them to have 2 restaurant buildings on this property. Those two buildings will hold 3 different restaurant concepts. The parking waiver wouldn't be required and the TPO waivers and contributions wouldn't have to occur. He said the real problem is being created by the second building on the property. He noted that he provided the Council with a letter outlining their concerns. He explained that the average Wienerschnitzel restaurant has half the sales of the average Burger King restaurant. He said that in addition to the facts in the staff report, there are other facts that bear directly on the parking issue — actual observations of what the actual parking is for Burger Kings in the Volume 52 - Page 128 City of Newport Beach City Council Minutes July 27, 1998 L DTw- vicinity and not the Burger King in Santa Ana, which is the subject of the parking study. In addition to the parking problems, he noted that there are some site problems, which he pointed out on a site plan that he explained to the Council. He noted that there are four lanes of traffic southbound on Jamboree and the lane that turns into the Wienerschnitzel and Newport Federal Building is an acceleration lane for traffic entering from Birch onto Jamboree. He said the difficulty is that the more traffic that is brought to the site, the more difficult the access is. He said they believe that the two buildings is what really creates the intensity. He said they also have issues with the access from Birch Street. He noted that the Burger King drive - through exits onto Birch Street. He also pointed out that the proposal shows stacking for seven cars, however there are letters and studies showing that the Burger Kings in the area are stacking 9 to 19 cars. He said that based on the parking issue, traffic issue, and intensification of the use of the property, this is a case of too much on too little and they believe the solution would be to simply approve the Burger King or have it redesigned to not include the second building. Council Member Hedges questioned Mr. Caulfield about whether the Wienerschnitzel would be willing to have their use permit reviewed to consider whether or not the code required parking should be provided on site, or to make modifications to the building to bring it into compliance with the Newport Beach code. Mr. Caulfield explained that they sought and obtained a parking reduction. Based upon the City's parking study, he said it appears that they have not exceeded the capacity of their parking as it is now. He said that it was an objective standard that was based upon an evaluation of what fast food restaurants did and in this case it can be evaluated specifically since they know what restaurant is going in. He noted that on a national sales average Wienershnitzel's average sales as a chain are 20% less than Burger Kings'. In response to Council Member Hedges' question about whether trip generation should be based on gross sales rather than the quantities of products sold, Mr. Caulfield stated that the number of trips is a function of gross sales and how much each person spends. He explained the "check average" and volume of sales. Council Member Hedges stated that perhaps the Council should look at the use that Wienershnitzel is enjoying and call that up for review in the context of the approval for this project and look at all of them to see what needs to be done on site for all the businesses to make the whole corner work. Mr. Caulfield pointed out that this would be amending a development agreement that was executed 25 years ago, which was reflected in CC &R's that were in effect in 1978 under which the properties were purchased. He said he doesn't know what their use permit would have to do with amending development agreements. He said his interest is in preserving the business they have at that site. He stated that they sought and obtained waivers 15 years ago and he doesn't know if reviewing use permits that occurred 15 years ago would be productive. City Attorney Burnham stated that the City generally would not have the Volume 52 - Page 129 City of Newport Beach City Council Minutes July 27, 1998 INDEX to review a use permit unless the permit provides for such review. Tom Wooldridge, 1735 Corbett Highlands Place, Arroyo Grande, owner of the property located at 4501 Jamboree which is leased to the Galardi Group who operate the Wienerschnitzel restaurant, said his property abuts the restaurant located at 5180 Birch Street. It is his understanding that the owner of that property wants to tear down his restaurant and proposes to replace it with three restaurants, one of which would be a Burger King with a drive - through service and an additional building would house two additional full- service small scale restaurants. Based on his notice, the owner wishes to amend the Koll Center Planned Community development regulation allowing him to triple the amount of restaurants from 1 to 3 restaurants on his property. The present restriction is 2 restaurants for both properties. He explained his past history as a law enforcement officer and his duties and responsibilities representing the Police Department at the City planning meetings and working with the traffic engineer. Without adequate vehicle circulation and parking, there will be a major pedestrian safety problem. He said that in his opinion the proposed project lacks adequate parking and may cause a traffic circulation problem. He said he purchased his property based on the fact that the CC &R's, along with the City regulations, were protective of his investment and were drafted to maintain and control the design and integrity of the development. Having a dining and fast -food restaurant appeared to be a favorable balance between the two properties, but replacing the dining restaurant with a Burger King plus two additional restaurants will create a major parking problem and have a detrimental affect on their business. He noted that the Burger King alone will generate double the vehicular traffic compared to the Wienerschnitzel. He said his tenant was forced to post their parking stalls due to the fact that customers eating at the dining restaurant would park on their property and vice versa. He asked that the City Council consider the detrimental affect the proposed development will have on his property by replacing one dining restaurant with three restaurants. He requested that the Council deny the waiver of any parking requirements for this project. Rich Bluth, Director of Facilities, Rockwell Semiconductors, 4311 Jamboree Road, stated that Rockwell has operated the facility since the early 1960's in that location. He said they have only one concern related to this project, which is described in their letter, and it relates to the parking. He said that Wienerschnitzel was granted a parking waiver at the time it was developed. When Taco Bell was built adjacent to the 4000 MacArthur property a waiver of 11 spots was granted to that project as well on the basis that walk -in dining would create a discount in terms of parking required. He said it has been their observation that Taco Bell is extremely successful and parking is fully booked during the peak times, which is evidenced by the traffic study submitted for this project. This project is asking for a waiver of 15 spots and their concern is that people will park on their lot and go to the Burger King since their property does not have controlled parking. He noted that this project can clearly be built within the code required parking and therefore he requested that Council consider that. He said they have concerns with the liability from people transgressing their property who don't belong there. He reiterated that their concern is only parking, it does not relate to the traffic effort or analysis, and only because they feel parking will end up on their Volume 52 - Page 130 City of Newport Beach City Council Minutes July 27, 1998 INDEX site. Hearing no further testimony, Mayor Edwards closed the public hearing. In response to Council Member Debay's question about whether the other two adjoining restaurants are a Starbucks and a bagel shop, Mr. Strader reported that they are limited -use, 25 seat, small coffee and bagel type operations. Council Member Debay questioned whether the peak hours for these restaurants would be different than for the Burger King. Bryant Bryson, Director of Operations and Development, Breckenridge Group, said that as an operator they are concerned with the other uses as well. While looking for secondary tenants for the two smaller uses, he said they are looking for something to be complimentary to their business. As far as the Burger King he said approximately 10 -15% of the sales come from the breakfast period, 35.40% in lunch and dinner depending on the type of location. He said based on the location it would be more skewed to lunch. He said it is their intent to find tenants that would compliment them and allow them to phase parking in and out so there won't be a need for the type of parking presently being required. He said they are negotiating with a coffee house, however it has not come to fruition yet. He said that as an operator they don't want another use that will be heavy lunch or dinner because that would just damage the Burger King's business. Council Member Hedges noted the problem with the parking at the Starbucks at Campus and MacArthur. He requested that the Traffic Engineer walk the Council through the methodology used to determine the conclusion on the analysis for this project. Motion by Council Member Hedges to continue this matter to August 10, 1998 in order to get the questions related to parking and stacking answered. He said he is not convinced that the Planning Commission made the right conclusions based on the analysis. He also requested that the Traffic Engineer and consultant be present at the meeting. The motion failed by the following roll call vote: Ayes: Debay, Hedges, Mayor Edwards Noes: Thomson, O'Neil, Glover, Noyes Absent: None Abstain: None Mayor Pro Tem O'Neil said he doesn't feel it is appropriate for the City to make decisions which deal with regulating competition between various business enterprises. Motion by Mayor Pro Tem O'Neil to introduce Ordinance No. 98 -20 amending Koll Center Newport Planned Community, and pass to second reading on August 10, 1998; approve Use Permit No. 3635 and Traffic Study No. 116 with the modified condition #2 as presented, including an override of Volume 52 - Page 131 City of Newport Beach City Council Minutes July 27, 1998 the provisions of the Traffic Phasing Ordinance, subject to the Findings and Conditions set forth in Exhibit "A." He said he believes the findings and conditions are rather extensive and allows for further review of access and parking. He said staff still has the jurisdiction to review the full issue of traffic circulation. The motion carried by the following roll call vote: Ayes: Thomson, Debay, O'Neil, Glover, Noyes, Mayor Edwards Noes: Hedges Absent: None Abstain: None CONTINUED BUSINESS 20. 1998 -99 BUDGET AND BUDGET CHECKLIST (contd. from 6122198). City Manager Murphy explained that the Council has the written staff report that was given to the Council at the meeting of June 22, 1998, as well as the minutes from that meeting. On June 22, 1998 the City Council adopted the budget, deferred action on a majority of the checklist items and after discussion focused on finding additional dollars for capital improvement projects asked that he return with a plan to address the issue. He said his recommendation in the staff report can be summarized as undertaking another review of the City's operating expenses, reserves, and assets in order to find dollars for the short -term and for the long -term. The approach that he suggested is to simultaneously undertake a number of efforts. The first is to identify in each infrastructure system (roads, storm drains, water & sewer, etc.) the appropriate level of funding needed to keep the infrastructure in good repair and condition. He said he indicated in the staff report that many of the master plans have been completed, but there is still some that need to be done. Second, would be to identify the timetable needed for funding for each of those systems. This will vary year to year depending on what the particular need is in a particular area based on the master plan. Third, to re- examine the current dollars towards capital, examine the City assets, the possibility of grants, and the reserves that the City currently has for use in capital improvements. Most importantly, the one that will be the most time - consuming, is to re- examine how to squeeze more dollars out of the operating expenses. The suggested approach is also to return in January of 1999, the mid -point in the new fiscal year, to visit where things stand in the new fiscal year, where the state budget has ultimately resolved as it relates to VLF, where the City stands with revenue and expenses, and to look at what additional dollars can be allocated during the current fiscal year towards capital improvements. He said there is a reasonable chance that could very well occur. He said he also suggested a manner for handling the checklist items. He noted that there are 23 items that he has broken down into several categories. Category A are items that Council took action on on July 22, 1998, and his proposal is that those would stand as approved. Category B are items which fit in the category of additional capital improvements and he has suggested that they be held in abeyance for six months and can be reconsidered after the revenues are looked at in the current fiscal year, as well as the expenses, to see if they can Volume 52 - Page 132 INDEX 1998 -99 Budget (40) City of Newport Beach City Council Minutes July 27, 1998 INDEX be funded, in addition to looking at the more comprehensive picture. Category C are those items which were added to the checklist and are currently in the budget for funding capital improvement projects. He suggested that those items proceed. Category D is to approve as recommended in the checklist. Category E are three issues that don't fit into any of the other categories and the City Council needs to take an individual vote on these items. He noted that after many years of downturns the economy is doing well, the standing in the marketplace as far as salaries benefits has been addressed, over the years the expenses in terms of maintenance and operation have been held down, the capital improvements have held steady, and reserves have been restored, but now it is time to look again with an emphasis on the capital improvement program. He explained that he is proposing an aggressive program over the next six months to undertake that effort for the short -term, but more importantly for the long term. Council Member Noyes stated that he thinks the timeframe should be shortened to about three months and the items that aren't approved tonight should be made action items and not just part of an update. He said he also believes there are opportunities in the government culture to provide employees with a sense of pride and satisfaction in the job that they do and part of that is to instill in them the need to be very productive, see their organization be productive and to lend a hand to that in some way. He said he thinks almost every employee probably has some idea or concept that would save the City money or improve service to the citizens. He said he believes the employees in the field are more responsive to the citizens and the ones in the buildings are more responsive to the corporate culture. He suggested that the employees work out into the field more. Motion by Mayor Pro Tem O'Neil to accept the recommendation of the City Manager to receive and file the report, to direct the City Manager to undertake the review as outlined and report back to the City Council on a periodic basis on the status of the review, and to consider additional capital improvement allocations for the 1998 -99 fiscal year. His motion included changing the January 1999 date to November 1998 to make it 90 days. On the checklist items, his motion included no further discussion on the three items in Category A since they have already been approved; hold the items in Category B for abeyance for 90 days; approve the items in Category C since they were budgeted; and hold D and E in abeyance for 90 days. Council Member Glover reported that she believes she can get some private funding for the bridge flags, however she can't get that within 90 days. She voiced concern about holding the funding for the West Newport Channels, noting that it is an embarrassment to have beaches and channels closed in Newport Beach. She spoke in opposition to the funding for the Balboa parking lot because she doesn't believe the answer for the peninsula is to add more parking spaces. She said she would also like to see more legal analysis done on the oil field program and she would also like to see the City consider selling off the rental property at the Balboa Yacht Basin. She spoke in support of the funding for the book collection. Council Member Debay said she feels that this process is unwieldy and Volume 52 - Page 133 City of Newport Beach City Council Minutes July 27, 1998 INDEX difficult and explained that she seconded the motion because usually in January the Council establishes goals and priorities for the coming year. Based on that, she was in accord with having the review in January so that these could be addressed as part of the goals. Council Member Hedges expressed concern about the process that is generally followed, and noted that the kind of things that the City Manager is proposing should have been done a long time ago. All that Council needs to decide tonight is whether they want to do the things which have been identified at this point and then direct the City Manager to bring back the appropriate resolution to amend the budget to reflect the reductions and expenditures that are identified to fund these projects. He said he doesn't think the City Council needs to get involved with the nuts and bolts of how to pay for these items since that is a function of the City Manager. Mayor Pro Tem O'Neil withdrew his motion. Motion by Council Member Hedges to approve all of the items in Category B and include them in the FY 1998 -99 budget, which includes $750,000 for street lights. Substitute motion by Mayor Edwards to review and vote on each item individually. Virginia Herberts, Balboa Community Association liaison to the Council, spoke in opposition to the expansion of the Balboa parking lot. She noted that the residents are not served by this expansion and they are opposed to modifying the exit point from Main Street to Washington Street, which would call for a third signal in two blocks. She also voiced concern about how this item was put on the agenda in the context of the budget and no one knew about it. Tom Hyans said he took issue with Council Member Noyes' comment and noted that his contention with what goes on with the budget has nothing to do with the people who work here, but it has to do with the amount of money that they are paid and how they are managed. He noted that the City always ranks in the second or third highest position of other cities within the County. He said that Newport Beach is last as far as privatization and only two functions in the City have been privatized. He expressed concerns with the Marine Safety MOU and noted that 65% of the operating budget is salaries and benefits. He said that the City needs to talk about privatizing and finding some other ways to manage the financing of the City to get the kind of services the residents have come to expect. Elaine Linhoff, 1760 E. Ocean Blvd., voiced opposition to the Balboa parking lot expansion project. She noted that the Peninsula Point Association members don't want a third light at Washington Street or anything that will create more traffic delays. She noted that the parking lot would not need to be expanded if the Catalina boats were required to provide off street parking. She said that she would like to see more money spent on resurfacing Balboa Boulevard, rather than spending the money on Jamboree between Coast Highway and San Joaquin Hills Road. Volume 52 - Page 134 City of Newport Beach City Council Minutes July 27, 1998 INDEX Jim Wood, 839 Promontory Drive, Chair of the Library Board of Trustees, stated that the Library is moving to a status of excellence and it is their intent to have it as one of the finest libraries for a city of this size in the U.S. He noted that the addition of an art collection is an opportunity to create additional value. Last year's upgrading of the American History collection is moving into place and each volume has a bookplate indicating that it was made possible by Building Excise Tax (BET) funds of 1998. He said that now their sights are set on 1700 books, volumes, tapes, videos, and CD -roms related to the arts (photography, painting, sculpture, interior design, furniture, printing, etc.). He noted that the Library is adopting a motto as part of their marketing plan. Their motto is "The cultural, educational and informational heart of Newport Beach" and they think this investment will move them towards that goal. With Council Member Hedges dissenting, the substitute motion carried. Council Member Noyes explained that the Balboa parking lot is on the checklist because it was in the budget and it was pulled for discussion because he didn't feel that the plan has been settled with the residents. He noted that the parking management study will interface with the parking management plan that is going on for the peninsula, and before anything is implemented, the residents will be involved in the process. 1. Restroom Maintenance. Prioritization of maintenance was approved on 6122/98. 2. Cannery Village Overtime. Additional $9,500 in Police Department overtime was approved on 6/22/98. 8. Newport Elementary Landscaping. Additional $25,000 in Capital Projects was approved on 6/22/98. 3. Street Liehts. Motion by Council Member Nov to approve the original $250,000 and direct staff to come back in 90 days after further study. Substitute motion by Council Member Hedges to retain $750,000 in the budget died for lack of a second. Without objection, the motion carried by acclamation. 4. Jamboree /Bayside LandscaWne. Motion by Mayor Pro Tem O'Neil to approve an additional $31,500 in Capital Projects. He explained that the original cost estimate was $35,000, however the community association is contributing $3,500. Volume 52 - Page 135 City of Newport Beach City Council Minutes July 27, 1998 INDEX Substitute motion by Council Member Hedges to use the $20,000 budgeted for City Hall air conditioning died for lack of a second. With Mayor Edwards dissenting, the motion carried. 5. Irvine Avenue Median. Motion by Council Member Glover to approve the funding since this is a joint effort with the City of Costa Mesa. Substitute motion by Mayor Edwards to hold this item for 90 days. With Council Members Glover and Hedges dissenting, the substitute motion carried. 6. Bridge flags. Motion by Mayor Pro Tem O'Neil to hold this item for 90 days. Substitute motion by Council Member Hedges to split the $20,000 budgeted for City Hall air conditioning between the bridge flags and Newport Channel died for lack of a second. Without objection, the motion carried by acclamation. 18. West Newport Channels. Motion by Mayor Edwards to approve an additional $10,000 in Capital Projects. Substitute motion by Council Member Hedges to use the $20,000 budget for City Hall air conditioning to pay for water testing died for lack of a second. Without objection, the motion carried by acclamation. City Hall Electrical. Motion by Council Member Noves to hold this item in abeyance for 90 days. Substitute motion by Council Member Deb av to approve the original $70,000 included in the budget. With Council Members Hedges, Glover and Noyes dissenting, the substitute motion carried. 9. Police Department Maintenance. Motion by Mayor Pro Tem O'Neil to approve the original $100,000 included in the budget. Volume 52 - Page 136 City of Newport Beach City Council Minutes July 27, 1998 INDEX Substitute motion by Council Member Hedges to hold in abeyance for 90 days died for lack of a second. With Council Member Hedges dissenting, the motion carried. 10. Newport Theatre Arts. Motion by Council Member Glover to approve the original $67,500 included in the budget. Without objection, the motion carried by acclamation. 11. Votine Machine. Motion by Council Member Debay to approve the original $25,000 included in the budget. Substitute motion by Council Member Novea to hold this item in abeyance for 90 days. With Council Members Glover, Hedges and Noyes dissenting, the substitute motion failed. With Council Members Glover, Hedges and Noyes dissenting, the main motion carried. 12. Balboa Parkine Lot. Motion by Mayor Pro Tem O'Neil to hold this item for 90 days. Without objection, the motion carried by acclamation. 13. Parkine Meters. otion by Mayor Edwards to include the funding in the budget Council Member Thomson spoke in opposition to the motion and indicated that the City needs to review the new technology available as it relates to parking meters. Substitute motion by Council Member Novea to hold this item for 90 days and to direct staff to bring back a complete report on parking meter issues. With Mayor Edwards and Council Member Debay dissenting, the substitute motion carried. 16. Balboa Yacht Basin Improvements. Motion by Mayor Edwards to approve the original funds included in the budget. Volume 52 - Page 137 City of Newport Beach City Council Minutes July 27, 1998 INDEX Council Member Glover spoke in support of the motion and noted that the committee that was formed to review income properties should also look at these apartments. Council Member Noyes commented that he felt the city wasn't doing enough maintenance on the Yacht Basin and suggested the development of a Request for Proposal (RFP) to privatize the Yacht Basin. Without objection, the motion carried by acclamation. 17. Oil Field Improvements. Motion by Council Member Debav to proceed with this project. Substitute motion by Council Member Hedges to hold this item for 90 days. City Manager Murphy explained that the wells are a City asset, however the City contracts for its operation. He indicated that a study has been undertaken with the focus to look at the future of the operation. He explained that the net revenues remain in the Tide and Submerged Land fund. As a result of the study, several proposals have come into the City to come in and drill new wells or re -drill existing wells into new areas. It has been indicated to the City that there may be additional oil potential and the staff wants to look at that to see if that information is accurate. He said that staff will bring a report back to the Council in about 45 days with a picture of the oil field operation — revenues, expenses, the potential for the future, as well as addressing legal issues. Without objection, the motion carried by acclamation. 21. Newport Blvd. Retaining Wall. Motion by Mayor Edwards to approve the original $10,000 included in the budget. Without objection, the motion carried by acclamation. 19. Fire/Marine Centralization. Motion by Council Member Deb av to approve the original $36,000 included in the budget. Without objection, the motion carried by acclamation. 22. Lifeguard Accounting Transfer. Motion by Council Member Glover to approve the transfer of $8,064 from S &EB to M &O. Volume 52 - Page 138 City of Newport Beach City Council Minutes July 27, 1998 INDEX With Council Member Hedges dissenting, the motion carried. 23. Jamboree Road Re- budget. 24. Grand Canal Re- budget. Motion by Mayor Edwards to approve the re- budget of $520,000 for the Jamboree Road project and the re- budget of $130,000 for the Grand Canal project. Without objection, the motion carried by acclamation. 14. AQMD Division. 15. Newport Blvd. 301h to 32 °d Street. Motion by Mayor Edwards to exclude 14 & 15 from the budget. City Manager Murphy explained the AQMD item and noted that there is legislation that is expected to pass that will permanently exempt employment sites with fewer than 250 employees from mandatory rideshare programs. However, the Police & Fire Department operations in Newport Center exceed this threshold and will therefore remain under the AQMD mandate for ridesharing programs. Substitute motion by Mayor Pro Tem O'Neil to hold this item for 90 days. With Council Member Hedges dissenting, the motion carried. Motion by Mayor Pro Tem O'Neil to exclude $50,000 from the original budget (Item 15) for Newport Blvd. 30th to 32 ^d Street. Without objection, the motion carried by acclamation. 20. BET for Book Collection on Arts. Motion by Mayor Pro Tem O'Neil to approve an additional $100,000 in the budget for this collection. Council Member Hedges requested that the motion be amended to request that the Library Board of Trustees place an emphasis on American Art. Mayor Pro Tem O'Neil, maker of the motion, said he would prefer to let the Library Board of Trustees decide how to best assemble the collection. With Mayor Edwards dissenting, the motion carried. Volume 52 - Page 139 City of Newport Beach City Council Minutes July 27, 1998 INDEX Motion by Mayor Edwards to receive and file the report; direct the City Manager to undertake a review as outlined and report back to City Council in 90 days; and to consider the additional capital improvement allocations for the 1998.99 fiscal year and to address current budget checklist items as recommended. As requested by Council Member Hedges, Mayor Edwards amended his motion to include direction to the City Manager that he is not to increase the revenue assumptions. Council Member Hedges indicated that if there are increased revenues, they should be placed in reserves since there is a significant shortfall in that account. Mayor Pro Tem O'Neil spoke in opposition to the amendment about revenue estimates noting that he wants to have the flexibility of looking at the entire status of the financial situation. The motion as amended failed by the following roll call vote: Ayes: Hedges, Noyes Noes: Thomson, Debay, O'Neil, Glover, Mayor Edwards Absent: None Abstain: None Motion by Mayor Pro Tem O'Neil to receive and file the report; direct the City Manager to undertake a review as outlined and report back to City Council in 90 days; and to consider the additional capital improvement allocations for the 1998 -99 fiscal year and to address current budget checklist items as recommended. Without objection, the motion carried by acclamation. 21. MULTI - FAMILY RESIDENTIAL (MFR) ZONING AND HEIGHT LIMITS IN CORONA DEL MAR (Requested by Mayor Pro Tem O'Neil). Mayor Pro Tem O'Neil explained that he requested this report because the height limits for MFR are different than for the R -2 district. He said that based on the report there is evidence that the Council should direct staff to prepare a resolution of intention to initiate the amendment to lower the MFR height limits. He explained that based on the staff report there are two options to be considered. One would be to adopt the 24/28 foot height limit as specified for the R -1 and R -2 districts and the second would be to enact the split height limit of the old R -3 district in effect from 1972 to 1990. Motion by Mayor Pro Tem O'Neil to direct staff to prepare a Resolution of Intention to initiate an amendment to the development regulations for Corona del Mar with staff to also provide direction on whether the ordinance should take on the form of the height limits (24/28) as specified for the R -1 and R -2 Districts or if it should enact the split height limit of the old R -3 District in effect from 1972 to 1990. Volume 52 - Page 140 CdM MFR Zoning/ Height Limits (68/94) City of Newport Beach City Council Minutes July 27, 1998 Without objection, the motion carried by acclamation. 22. UNSCHEDULED VACANCY ON THE LIBRARY BOARD OF TRUSTEES (RESIGNATION OF JAY McGOODWIN). Motion by Mayor Edwards to accept the resignation of Jay McGoodwin, Library Board of Trustees effective July 19, 1998 (term expires June 30, 2001). Without objection, the motion carried by acclamation. Motion by Mayor Pro Tem O'Neil to direct the City Clerk to advertise the unscheduled vacancy pursuant to Council Policy A•2. Without objection, the motion carried by acclamation. MOTION FOR RECONSIDERATION -None ADJOURNMENT - 9:55 p.m. in memory of Officers Chestnut and Gibson, Commander Alan Shephard, and local residents Branch Kerfoot and Marilyn Walley. The agenda for the Regular Meeting was posted on July 22, 1998, at 3:45 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 52 - Page 141 INDEX Library Board of Trustees (24)