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HomeMy WebLinkAbout02/07/1983 - City CouncilR.EGUJ-AR MEETING OF THE CITY COUNCIL CITY OF COSTA MESA FEBRUARY 7, 1983 The City Council of the City of Costa Mesa, met in regular session on February 7, 1983,_at 6:30 p.m., in the Council Chambers of City Hall, 77 Fair Drive, Costa Mesa, California. The meeting was called to order by the Mayor, followed by the Pledge of Allegiance to the Flag led by Girl Scout Troop No. 33, and Invocation by the Reverend Douglas McKenzie, Harbor Christian Fellow- ship. ROLL CALL Council Members Present: Hall, Johnson, Hertzog, McFarland, Schafer Council Members Absent: None Officials Present: City Manager, City Attorney, Development Services Director, Director of Public Services, City Clerk MINUTES On motion by Councilwoman Schafer, seconded by Vice January 17, 1983 Mayor Johnson, and carried 5-0, the minutes of the regular meeting of January 17, 1983, were approved as distributed and posted. ORDINANCES A motion was made by Councilman McFarland, seconded by Councilwoman Hertzog, and carried 5-0, to read all ordinances by title only. Presentation to An award fram the State of California was presented by Leonard Raab Mayor Hall to Leonard Raab, City of Costa Mesa Senior Ccmmunications Supervisor, canmending Mr. Raab for his support of the National Guard. CONSENT CALENDAR The following items were removed from the Consent Cal- endar: Items 7(a), 7(b), 7(c), 7(d), and 7(e), claims frau Donald Gambill, Madeline J. Ertel, James W. Schneckner, Linda Valdez, and Roger Nekookari, respec- tively. On motion by Councilman McFarland, seconded by Council- woman Schafer, the remaining Consent Calendar items were approved in one motion by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None READING FOLDER On motion by Councilman McFarland, seconded by Council- woman Schafer, and carried 5-0, the following Reading Folder items were received and processed: Claims Claims have been received by the City Clerk from the following persons: State Farm Insurance on behalf of Hung and Phan Van; John E. McCreight; on behalf of Kellie Ann Hanson, a minor, by Ernest Hanson, Guardian ad Litem; and Clark Waters. Alcoholic Alcoholic Beverage License applications for which Beverage parking has been approved by the Planning staff Licenses from: Steak and Ale of California, Incorporated, doing business as Bennigan's, 3333 South Bristol Street; DLC Operating Corporation, doing business ness as Fantasy's South Coast, 2000 South Harbor Notification from the Public Utilities Commission of a Prehearing Conference for the following: Application No. 82-12-02 from Southern Cali- fornia Gas Company and Pacific Lighting Gas Supply Company for authority to include in rate base as plant held for future use the costs associated with the Liquefied Natural Gas Project, and to increase rates to reflect such rate base treatment; or in the alterna- tive to amortize such costs over four years and recover them in rates. Application No. 82-12-04 from Pacific Gas and Electric Company for authority to include in rate base as plant held for future use, or other apprcproate rate base treatment, the costs associated with the Liquefied Natural Gas Project, and to increase gas rates to reflect such rate base treatment or in the alternative, to amortize the costs associated with the Liquefied Natural Gas Project and to increase gas rates to reflect such amortiza tion. BUSINESS PERMITS Notice of Intention to Appeal or Solicit for Charitable United Cerebral Purpose has been received from United Cerebral Palsy Palsy Association of Orange County, Incorporated, 3020 West Harvard Street, Santa Ana, by collection of reusable Boulevard, Suites 100, 101, and 102; Pacific Fare, Incorporated, doing business at 179-A East 17th Street; Marjorie L. and Robert A. Rowe, doing business as Flame Roan, 1880 Monrovia Avenue; Longs Drug Stores, Incorporated, doing business at 175 East 17th Street; Douglas E. Montandon, doing business at 1550 Superior Ave- nue, Section D; and Steven C. Feldman, doing business as Stevens Pharmacy, 1525 Mesa Verde Drive East,'Suites 101, 102, and 103. Costa Mesa Letter from Bernard E. Ford, 11448 Sylvanite Golf Course Circle, Fountain Valley, expressing appreciation to the City for its reduced rates for senior citizens and commending the efficiency of the golf course starters. Local Revenue Resolution from the City of Stanton urging the Deficiencies State Legislature to make local revenue defici- encies the highest priority during the next session. Fair Employment Notice of Public Hearing from the Fair Employment and Housing and Housing Commission pertaining to proposed Commission regulation amendments. Public Utilities Notification from the Public Utilities Commission Commission that Application No. 83-01-12 has been filed by Advanced Mobile Phone Service, Incorporated, and the Los Angeles SMSA Limited Partnership for a Certificate of Public Convenience and Necessity, under Section 1001 of the Public Utilities Code, for authority to provide a new domestic public cellular radio telecommunications system in the greater Los Angeles metropolitan area. Notification from Pacific Telephone Company that Application No. 83701-22 has been filed with the Public Utilities Commission for a telephone rate increase. Notification from the Public Utilities Commission of a Prehearing Conference for the following: Application No. 82-12-02 from Southern Cali- fornia Gas Company and Pacific Lighting Gas Supply Company for authority to include in rate base as plant held for future use the costs associated with the Liquefied Natural Gas Project, and to increase rates to reflect such rate base treatment; or in the alterna- tive to amortize such costs over four years and recover them in rates. Application No. 82-12-04 from Pacific Gas and Electric Company for authority to include in rate base as plant held for future use, or other apprcproate rate base treatment, the costs associated with the Liquefied Natural Gas Project, and to increase gas rates to reflect such rate base treatment or in the alternative, to amortize the costs associated with the Liquefied Natural Gas Project and to increase gas rates to reflect such amortiza tion. BUSINESS PERMITS Notice of Intention to Appeal or Solicit for Charitable United Cerebral Purpose has been received from United Cerebral Palsy Palsy Association of Orange County, Incorporated, 3020 West Harvard Street, Santa Ana, by collection of reusable MOTION household and clothing items. On motion by Councilman Permit Approved McFarland, seconded by Councilwoman Schafer, and carried 5-0, the permit was approved for calendar year 1983. Teen Challenge Notice of Intention to Appeal or Solicit for Charitable Purpose has been received from Teen Challenge of South- ern California, 5445 Chicago Avenue, Riverside, by MOTION solicitation of funds for a pancake breakfast. On Permit Approved motion by Councilman McFarland, seconded by Councilwoman Schafer, and carried 5-0, the permit was approved frau January 7 to April 5, 1983. Concept 7 Family Notice of Intention to Appeal or Solicit for Charitable Services Purpose has been received from Concept 7 Family Ser- vices, 17772 Irvine Boulevard, Tustin, by collecting MOTION reusable household and clothing items. A motion was Permit Approved made by Councilman McFarland, seconded by Councilwoman Schafer, and carried 5-0, approving the permit for calendar year 1983. Services for Notice of Intention to Appeal or Solicit for Charitable the Blind Purpose has been received frau Services for the Blind, 2015 North Broadway, Santa Ana, by sale of trash bags. MOTION A motion was made by Councilman McFarland, seconded by Permit Approved Councilwoman Schafer, and carried 5-0, approving the permit from February 1 through March 30, 1983. Southern Notice of Intention to Appeal or Solicit for Charitable California Purpose has been received from Southern California Vietnamese Vietnamese Community, Incorporated, 2621 East Coolidge Parking Lot Avenue, Orange, by holding a festival and dance at the MOTION Orange County Fairgrounds, February 12-13, 1983. On Permit Approved motion by Councilman McFarland, seconded by Councilwoman Work Accepted Schafer, and carried 5-0, the permit was approved with the condition that Certificate of Insurance is sub- mitted to the City_ Attorney by February 2, 1983. ADMINISTRATIVE ordered exonerated 7 months after the Notice of Comple- ACTIONS On motion by -Councilman McFarland, seconded by Council- woman Schafer, Resolution 83-7, being A RESOLUTION OF Residential THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, Permits DESIGNATING AN ADMINISTRATIVE ENTITY TO COORDINATE RESIDENTIAL PERMITS IN ACCORDANCE WITH ASSEMBLY BILL MOTION NO. 941, was adopted by the following roll call vote: Resolution 83-7 AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog Adopted McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Request for On motion by Councilman McFarland, seconded by Council - Assessed Valuation woman Schafer, Resolution 83-8, being A RESOLUTION OF Estimate THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, REQUESTING AN ESTIMATE OF ASSESSED VALUATION OF PROPERTY MOTION FOR THE 1983-1984 FISCAL YEAR FROM THE ORANGE COUNTY Resolution 83-8 ASSESSOR, AND SETTING FORTH THE REASONS THEREFOR, was Adopted adopted by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Notice of Parking Lot Improvements at the Costa Mesa Golf and Completion Country Club have been completed to the satisfaction Golf Course of the Director of Leisure Services by All American Parking Lot Asphalt, 932 Town and Country Road, Orange. On motion by Councilman McFarland, seconded by Councilwoman MOTION Schafer, the work was accepted; the Clerk was authorized Work Accepted to file a Notice of Completion; the Performance Bond was ordered exonerated 35 days after the Notice of Comple- tion has been filed; the Labor and Material Bond was ordered exonerated 7 months after the Notice of Comple- tion -has been filed; and authorization was given to LJ Im release retention funds 35 days after acceptance by Council. The motion carried by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer. NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 17th Street Bids received for Installation of the East 17th Street Signal System Signal System are -on file in the Clerk's office. A motion was made by Councilman McFarland, seconded by MOTION Councilwoman Schafer, awarding the contract to Four Awarded to Simon, Incorporated,.3265 Fletcher Drive, Los -Angeles, Four Simon in the amount of $223,175.00, being the lowest bid meeting specifications. The motion carried by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Illuminated Street Bids received for Installation of 22 Illuminated Street Name Signs Name Signs are on file in the Clerk's office. A motion was made by Councilman McFarland, seconded by Council - MOTION woman Schafer, awarding the contract to Superior Signal Awarded to Services, 6853 Live Oak Street, Bell Gardens, in the Superior Signal amount of $13,416.04, being the lowest bid meeting specifications. The motion carried by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Bid Item 571 One bid received for Bid Item 571, Communications Communications Console System, is on file in the Clerk's office. A Console System motion was made by Councilman McFarland, seconded by Councilwoman Schafer, awarding the contract to Modular MOTION Communications Systems, Incorporated, 13309 Saticoy Awarded to Street, North Hollywood, in the amount of $175,000.00. Modular The motion carried by the following roll call vote: Communications AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, Systems McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Federal Safety The City has been offered $40,500.00 through a Federal Improvement Highway Safety Improvement Program to improve signals Grant on West 19th Street at Pomona Avenue and at Placentia Avenue. These locations qualified primarily due to the accident history at the two intersections. Matching funds, in the amount of $4,500.00, will be included in the 1983-84 Capital Improvements Budget. On motion by Councilman McFarland, seconded by Councilwoman Schafer, the grant was approved, and the Mayor and Clerk were authorized to sign on behalf of the City. The motion carried by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Reimbursement A reimbursement agreement with Southern California Agreement with Edison Company, was presented. In conjunction with the Edison Company realignment of 17th Street from Newport Boulevard to Orange Avenue, the City requested replacement of the Undergrounding existing overhead utility with underground distribution of Utilities on facilities. The total cost to the City is $104,060.00. 17th Street On motion by Councilman McFarland, seconded by Council- woman Schafer, the agreement was approved, the Mayor 301 MOTION and Clerk were .authorized to sign on behalf of the Agreement Approved City, and authorization was given to make full payment to Southern California Edison Company. The motion carried by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Completion of Engineering services have been completed to the satis- Contract - Bein faction of the Director of Public Services by Robert and Frost Bein, William Frost and Associates, 1401 Quail Street, Newport Beach, in connection with Assessment District Assessment No. 80-1, Sunflower/MacArthur Industrial Area. On District 80-1 motion by Councilman McFarland, seconded by Council- woman Schafer, authorization was given to release MOTION retention funds in the amount of $27,252.67. The Release of Funds motion carried by the following roll call vote: Authorized AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ZE-80-96 Improvements in connection with Zone Exception ZE-80-96 Pacific Federal have been completed to the satisfaction of the Director of Public Services by Pacific Federal Savings and Loan Association, 1901 Newport Boulevard, Costa Mesa, for MOTION property located at 400 West 19th Street. On motion by Work Accepted Councilman McFarland, seconded by Councilwoman Schafer, the work was accepted and the bonds were ordered exoner- ated. The motion carried by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Completion of The Bristol Street Widening at the San Diego (405) Bristol Street Freeway has been completed to the satisfaction of the Widening by Two Director of Public Services by Two Town Center Asso- Town Center ciates, 3315 Fairview Road, Costa Mesa. On motion -by Associates Councilman McFarland, seconded by Councilwoman Schafer, the improvements were accepted and final payment of MOTION $22,955.27, in accordance with the reimbursement Work Accepted agreement, was authorized. The motion carried by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Agreement - Palm An agreement with Palm Mesa Center Auto Park was pre - Mesa Center Auto sented relating to City acquisition of property for the Park 19th Street widening project. The agreement stipulates payment of $199,454.00 for 13,296.94 square feet of land. MOTION On motion by Councilman McFarland, seconded by Council - Agreement Approved woman Schafer, the agreement was approved, and the Mayor and Clerk were authorized to sign on behalf of the City, by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Air Conditioning On motion by Councilman McFarland, seconded by Council - Contract Amendment woman Schafer, authorization was given to amend the - Honeywell existing air conditioning contract with Honeywell Cor- poration to include air conditioning equipment for the MOTION Police Computer Roan at an annual cost of $5,976.00. Amendment Approved The motion carried by the following roll call vote: :,80J AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None CLAIMS Items 7(a), 7(b), 7(c), 7(d), and 7(e) on the Consent Calendar were presented, claims from Donald Gambill, Madeline J. Ertel, James W. Schneckner, Linda Valdez, and Roger Nekookari. Jerry Odegaard, 1632 Pegasus Street, Santa Ana Heights, stated he was not questioning the above claims, however, he was concerned that administrative settlements could be made without Council approval. Mr. Odegaard made reference -to a recent administrative settlement by the County of Orange. The City Manager.responded that the City's Insurance Committee has Council authority to settle claims which do not exceed $5,000.00, and that reports on these settlements are submitted to the Council. Any claim over $5,000.00 must be approved by the City Council. MOTION A motion was made by Councilman McFarland, seconded by All Claims Vice Mayor Johnson, rejecting the claims of Donald Rejected Gambill, Madeline J. Ertel, James W. Schneckner, Linda Valdez, and Roger Nekookari. The motion carried 5-0. OLD BUSINESS The Clerk presented for second reading and adoption, Cable Television Ordinance 83-2 relating to franchises for community antenna television systems. The City Manager referred to staff's memorandum dated February 3, 1983, which details revisions which have been made in Sections 19-120,-19-130, 19-140, 19-150, 19-200, 19-250, and 19-290. In a memorandum dated February 7, 1983, the City Attorney,recammended an additional change to Section 19-130, first sentence of the fourth paragraph, by deleting the phrase, "Upon written acceptance to the City's conditions". In view of the substantial changes suggested by staff, the City Manager recommended that Council again give first reading to Ordinance 83-2 as amended. MOTION On motion by Councilwoman Schafer, seconded by Vice Ordinance 83-2 Mayor Johnson, Ordinance 83-2, being AN ORDINANCE OF First Reading THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, REPEALING ORDINANCE NO. 72-35 AND ADOPTING ORDINANCE NO. 83-2 RELATING TO FRANCHISES FOR COMMUNITY ANTENNA TELE- VISION SYSTEMS, including amendments contained in the above-mentioned memoranda, was given first reading and passed to second reading by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None Planned On motion by Councilwoman Schafer, seconded by Council - Development woman Hertzog, Ordinance 83-3, being AN ORDINANCE OF Amendments THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING THE REGULATIONS CONCERNING PLANNED DEVELOP - MOTION MENTS WITHIN THE CITY OF COSTA MESA, was given second Ordinance 83-3 reading and adopted by the following roll call vote: Adopted AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ry1�1: R-82-12 On motion by Councilman McFarland, seconded by Council- woman Hertzog, Ordinance 83-4, being AN ORDINANCE OF MOTION THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, Ordinance 83-4 CHANGING THE ZONING OF LOTS 15 AND 16 IN BE= "B" OF Adopted TRACT NO. 612 FROM R3 TO R2, in connection with Rezone Petition R-82-12 for property located at 2019 and 2025 Wallace Avenue, was given second reading and adopted by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ZE-81-185 The Clerk presented a request for extension of time for Fairview State Zone Exception ZE-81-185, for a 148 -unit apartment Hospital project on Fairview State Hospital Property located at 2501 Harbor Boulevard. MOTION On motion by Councilman McFarland, seconded by Council - Extension woman Schafer, and carried 5-0, an extension of time to Granted December 7, 1983, was approved. Entertainment The Clerk presented a request for renewal of an enter - Permit - The tainment permit for The Concert Factory, 1714 Placentia Concert Factory Avenue. A communication has been received from Joseph Yukech, proprietor of The Concert Factory, in support of his request. Also enclosed were letters of recommenda- tion from the following: the Reverend John E. Cooley, Pastor,.St. Bruno's Church, Whittier; Southeast Recre- ation and Park District of Norwalk and La Mirada; City of La Habra; University of California at Irvine Inter - Collegiate Basketball; and Orange Coast College, Costa Mesa. Letters supporting renewal of the entertainment permit have been received from Susan Hahn, 518 Westminster Avenue, Newport Beach; Mr. and Mrs. Fred Martin, 424 Vista Parada, Newport Beach; Gallivan, Schmiesing and Blied, Attorneys at Law, 2787 Bristol Street, Costa Mesa; Mrs. Richard Browning, 5101 Dutcher, Irvine; Y. K. Park, 9 Eagle Point Circle,•Irvine; Mrs. Guidice, 1671 Tustin Avenue, Costa Mesa; and John Pach, 17711 Still Harbor Lane, Huntington Beach. Perry Valantine, Senior Planner, referred to his memorandum dated February 7, 1983, recommending that the permit for entertainment with public dancing be approved subject to five conditions. Mr. Valantine suggested the addition of Condition No. 6, "If any complaints are received, they are to be directed to the City Council for evaluation with the possibility of the permit being revoked". Joseph Yukech reported that he had contacted four of six neighbors in the area and they supported the entertain- ment permit. Mr. Yukech also agreed to all conditions. The City Attorney stated that he had spoken with Mr. Zubieta, owner of subject property, and was advised that no problems exist with the new business. Mayor Hall reported that the Police Department does not object to renewal of the permit. MOTION On motion by Vice Mayor- Johnson, seconded by Council - Permit Approved woman Hertzog, and carried 5-0, the permit was approved subject to the five conditions contained in staff's memorandum of February 3, 1983, and Condition No. 6 recommended by the Senior Planner. L WARRANTS On motion by Councilman McFarland, seconded by Council- woman Hertzog, Warrant Resolution 1203 was approved by MOTION the following roll call vote: Warrant 1203 AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, Approved McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL -MEMBERS: None On motion by Councilwoman Hertzog, seconded by Vice MOTION Mayor Johnson, Warrant Resolution 1204, including Warrant 1204 Payrolls 8301 and 8302, was approved by the following Approved roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None CITY ATTORNEY REPORTS The City Attorney presented a proposed amendment to the ordinance regulating indecent exposure. Indecent Exposure The -change is required because the State Supreme Court Ordinance ruled a City can only regulate indecent exposure in bus- iness establishments that sell liquor for consumption on the premises. MOTION On motion by Councilwoman Schafer, seconded by Council - Ordinance 83-5 woman Hertzog, Ordinance 83-5, being AN ORDINANCE OF First reading THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING THE COSTA MESA MUNICIPAL CODE RELATING 'Its INDECENT EXPOSURE, was given first -reading and passed to second reading by the following roll call vote: AYES: COUNCIL MEMBERS: Hall, Johnson, Hertzog, McFarland, Schafer NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None PUBLIC HEARING The Clerk announced the public hearing, continued from Appeal of ZE-81-06A the meeting of January 17, 1983, appeal of the Planning Calvillo/Graziadio Commission decision for Zone Exception ZE-81-06A, from Stevan R. Calvillo, 695 Town Center Drive, Suite 301, Costa Mesa, authorized agent for George L. Graziadio, et al, 9920 La Cienega Boulevard, Suite 1401, Inglewood, for interpretation of a mutual easement agreement as satisfying a condition of approval relating to off-site parking for an office building located at 1520 Nutmeg Place in a Cl zone. Environmental Determination: Neg- ative Declaration adopted for Zone Exception ZE-81-06. The applicant has submitted -a recorded off-site parking agreement for 1520 Nutmeg Place and 3105 Harbor Boule- vard, a supplemental "Grant of Easement Agreement", and a "Grant of Non -Exclusive Easement". Timothy Newlove, Attorney representing the applicant, 695 Town Center Drive, Suite 301, Costa Mesa, requested that Council accept the recorded off-site parking agree- ment and "Grant of Non -Exclusive Easement" to satisfy the requirements of Condition No. 2. Staff's memorandum of February 1, 1983, recommends that the following conditions be satisfied prior to release of any additional occupancy at 1520 Nutmeg Place: No. 1, "Two copies of the final supplemental Grant of Easement, including all exhibits, shall be submitted to the Planning. Division for review prior to recorda- tion. After approval, one copy will be returned to the applicant. The document shall then be recorded and a recorded copy shall be submitted for Planning Division records". 30EI No. 2, "A Notice and Declaration of Land Use Restric- tion, prepared by the City, shall be completed by the property owner. This document will specify that the owner will assume responsibility for notifying subse- quent tenants and owners of the parking restrictions established in association with ZE-81-06 and ZE-81-06A". Staff has recommended that should the Council choose to approve the existing recorded off-site parking agreement that either of the proposed supplemental agreements be accepted. There being no other speakers, the Mayor closed the public hearing. MOTION A motion was made by Councilwoman Schafer, seconded by Agreements Vice Mayor Johnson, accepting the recorded off-site Accepted parking agreement and a "Grant of Non -Exclusive Ease- ment" as satisfying the requirements of Condition No. 2. The motion carried 5-0. PUBLIC HEARING The Clerk announced that this was the time and place Council Review of set for the public hearing for Council review of Zone ZE-82-165/RA--82-22 Exception ZE-82-165, Redevelopment Action RA -82-22, S. Nord R. Nord, 300 Victoria Street, Costa Mesa, for a variance from parking requirements for a dental office in an existing commercial building located at 1892 Harbor Boulevard, in a C2 zone. Environmental Determination: Exempt. The Affidavit of Mailing is on file in the Clerk's office. A letter has been received from G. W. McClellan, Jr., D.D.S., Incorporated, and Arthur B. Parkins, D.D.S., Incorporated, 1879 Newport Boulevard, Costa Mesa, which contains six statements in rebuttal to comments made by Dr. Howard Morgan at the Redevelopment Agency meeting of January 5, 1983. Dr. Morgan represented the appli- cant. Councilman McFarland, who had requested that this item be forwarded to the Council for review, stated that after voting in favor of the variance at the Redevelop- ment Agency meeting, and after again reviewing the application, felt that he was in error by voting in the affirmative. Councilman McFarland expressed concern that the reduced number of parking spaces requested by the applicant is not sufficient for the proposed dental office. Perry Valantine, Senior Planner, summarized staff's memorandum dated February 3, 1983, which contains five options for Council consideration, and reiterated that staff continues to.recammend denial of the variance. Mr. Valantine also stated that the applicant's request to change the use of subject building from retail to a dental office would result in greater parking require- ments. Rod Lippold, 350 East 17th Street, Suite 111, Costa Mesa, representing Dr. Nord, disagreed with staff's opinion that a dental office creates greater parking requirements than retail use. Mr. Lippold referred to staff's memorandum of February 3, 1983, Page 4, and expressed agreement with Option No. 1, "Uphold the Redevelopment Agency's approval of the requested vari- ance as stated". He also agreed with Option No. 5, "Declare the parking variance to be a Conditional Use Permit for off-site or tandem parking," however, he disagreed with.Conditions (b) and (c). Mr. Lippold suggested that in lieu of Condition (b), "That a valet be provided during office hours as deemed necessary by the Development Services Director", applicant preferred that his staff assist in resolving parking problems. Because of the thousands of dollars applicant will be investing in the project, Mr. Lippold expressed objec- tion to Condition (d), "That the permits shall be subject to renewal at six-month, one-year, or two-year intervals by the Development Services Director". Dr. Howard -Morgan, 1707 East Bay Avenue, Balboa, stated that the only condition that would present a problem is Condition (b), relating to valet parking. Dr. Morgan gave a slide presentation of applicant's other dental offices in the County and reported that no parking problems exist at these locations. Roy McCardle, 1810 Newport Boulevard, Costa Mesa, supported approval of the variance because the project would improve the downtown area. Sid Soffer, 900 Arbor Street, Costa Mesa, also spoke in support of granting the variance. Dr. Frank Flores, 1879 Newport Boulevard, Costa Mesa, gave a slide presentation of the area and noted that there are only four parking spaces at subject property. He -pointed out that with the two spaces in the Vehicle Parking District, making a total of six spaces, the applicant was lacking five spaces to meet City's requirements. Dr. Flores urged the Council to deny the variance. Dr. Morgan offered to submit -a notarized affidavit attesting to the truth of the study presented by the applicant. Levi Rodriquez, Civil Engineer, 2516 Vassar Place, Costa Mesa, contended that there are five parking spaces on the site, one space being within the 19th Street setback and which was approved by the Planning staff. The Senior Planner responded that to his knowledge staff had not approved the fifth parking space mentioned by Mr. Rodriquez. He reported that the parking spaces are required to be nine feet in width and only four spaces exist on the site. The Senior Planner also commented that staff is not concerned with the present number of employees but is concerned with the future increase in business which would require hiring of additional per- sonnel. There being no other speakers, the Mayor closed the public hearing. Mayor Hall expressed his opinion that the variance should be granted. Vice Mayor Johnson asked for and received clarification regarding the statement by applicant's representative that the staff at the facility would monitor parking at the site. MOTION A motion was made by Councilman McFarland, seconded by Variance Denied Councilwoman Schafer, to deny the variance based on the findings contained in the Staff Report and the recommen- dation of the Planning Commission. The motion carried 3-2, Council Members Hall and Johnson voting no. RECESS Mayor Hall declared a recess at 8:05 p.m., and the meet- reconvened eetreconvened at 8:15 p.m. 310 NEW BUSINESS The Clerk presented an application from Butler Housing Corporation, 1691 Kettering Street, Irvine, for author - Fairview Housing ity to issue tax exempt revenue bonds for the Fairview Project Revenue State Hospital housing project, located at 2501 Harbor Bonds Boulevard. Merrill Butler, Butler Housing Corporation, gave a detailed presentation of the document submitted to the Council entitled, "Fairview Hospital Community Housing, Costa Mesa, California". The purpose of the presentation was to seek authority to issue multi -family rental housing bonds as set forth in the California Health and Safety Code, Sections 52075 through 52099, in order to finance the development of approximately 550 rental units for the Fairview Hospital Community Housing Project. The City of Costa Mesa will have no obligation or liability for payment of the bonds, however, the City would function as a financing conduit for the project. Units in the proposed project would be rented first to hospital employees, second to persons employed within the City of Costa Mesa, and lastly, to the general public. Rental rates are proposed to be affordable to median and moderate income renters as determined by the Orange County Housing Authority. The developer would also be required to rent 20 percent of the units at rates affordable to low- and moderate -income renters. Phase I, containing 148 units, has been approved by the City Council, and development will be done in two incre- ments. In summation, Butler Housing Corporation is seeking authority to issue up to $30,000,000.00 in Tax Exempt Revenue Bonds. This sum is requested in order to provide the flexibility that might be needed in regard to the development of Phases I and II, but particularly Phase II. In a memorandum to the Council dated January 26, 1983, the City Manager reported that the Mortgage Revenue Bonds do not require a pledge of the City's good faith and credit, however,_should a bond issued by the City of Costa Mesa suffer default, the City's reputation in the bond market could be affected in such a way as to hamper the future sale of City bonds. The risk to the City's reputation in the bond market can be eliminated by placement of proper controls on each issue. The City Manager's report contained three options: (1) not participating in any Mortgage Revenue Bond issues; (2) participating at the request of any developer or sponsor who proposes a project in the City; or (3) participating only in projects that further City goals/efforts. He recommended that because Mortgage Revenue Bonds are a limited resource with national economic ramifications that participation be limited to projects which further City goals. Mayor Hall commended Mr. Butler on his presentation. He commented that the planned community housing was a quality project and there was a need for it in the community. Mayor Hall reminded the Council that the only issue being considered tonight was the Tax Exempt Bonds, not the project itself. Dr. Francis Crinella, Fairview State Hospital Adminis- trator, reported that there has been a large turnover of employees at the hospital due to the lack of afford- able housing. Jerry Odegaard, 1632 Pegasus Street, Santa Ana Heights, expressed strong opposition to the City's involvement with the financing of subject project. He expressed his opinion that this type of financing interfered with the free enterprise system and would negatively affect present interest rates. Robert Wilson, 3435 Plumeria Place, Costa Mesa, spoke in opposition to the request, stating that Tax Exempt Bonds should be utilized only for those projects which benefit the public. He cammented that other developers would expect the same privilege for construction of "affordable" housing. Merrill Butler expressed his agreement with the views of Mr. Odegaard and Mr. Wilson, but pointed out that if the project is privately financed, the rental rates will be too expensive for hospital employees or moderate -income families. Dr. Crinella informed the Council that he had been contacted by a legislative aide from the office of the Assemblyman who heads the Assembly Ways and Means Com- mittee. ommittee. The aide asked why extensions continue to be granted to Butler Housing when the land could be profit- ably rofitably used for a prison. Dr. Crinella mentioned that there is a prison shortage in the State, and this use would require less staffing than a hospital. He further reported that if the site were used for such a project, the remainder of land would be sold. Mayor Hall reiterated that the issue being considered is financing of the project through Tax Exempt Bonds. He commented that land and rental costs do not enter into the subject of bonding. Mayor Hall mentioned that if the City decides not to sponsor bonds, the developer could approach the County of Orange for sponsorship. Mr. Butler responded that he could not approach the County on this matter unless it is approved by the City. At the request of Mayor Hall, the Redevelopment Director explained that Orange County offers an opportunity -for participation in its issuance of multi -family housing bonds provided that there has been City approval. The first phase involves the City entering into a coopera- tive agreement with the County. which provides that the City will not sell competing bonds -for the same project. In addition, specific action by -the' -,City approving each project for the County housing bond program would be required. Councilman McFarland expressed his opinion that Tax Exempt Bonds should be used in the Redevelopment Area. He questioned this type of financing and expressed doubt that he could support the request. Councilwoman Schafer agreed with the continents made by Councilman McFarland, and suggested that bonds be utilized in the Neighborhood Strategy Area. Mayor Hall concluded that there were four alternatives to consider: (1) City does not want to have project built with City or County Mortgage Revenue Bonds; (2) City does not want to support bonds but will recommend the County program; (3) City will sponsor bonds; and (4) Delay decision for further study. Councilwoman Hertzog stated that she did not want to completely eliminate the possibility of sponsoring Tax Exempt Bonds and suggested that this issue be SEM continued for four to six weeks so that the developer_ could pursue other financing alternatives. Councilman McFarland asked that Mayor Hall express his views on the bonding issue. Mayor Hall responded that he would support Mortgage Revenue Bond financing only for a public use project. He further commented that he was opposed to sponsoring bonds for subject project. MOTION Councilman McFarland made a motion that the City reject Bonding Program participation in the Mortgage Revenue Bond Program for Participation this project and also reject participation in the Rejected County Multi -housing Bond Program. The motion was seconded by Vice Mayor Johnson, and carried 4-1, Councilwoman Hertzog voting no. ORAL COMMUNICATIONS Sid Soffer, 900 Arbor Street, Costa Mesa, expressed his agreement with the Council's decision not to partici- pate in the Tax Exempt Bonding Program for the Fairview Hospital Community Housing Project. COUNCILMANIC COMMENTS Vice Mayor Johnson asked if anything could be done to prevent golf course lights from shining into the second Golf Course Lights story windows of surrounding homes. Report on Water The Vice Mayor thanked the Assistant City Manager for Well his report concerning the water well at Sunflower Ave- nue and Fuchsia Street. Golf Course Gate Vice Mayor Johnson requested information regarding the gate which was to be installed at the golf course. Mayor Hall responded that a report will be submitted at the next Council meeting. ADJOURNMENT At 10:25 p.m., Mayor Hall adjourned the meeting to February 14, 1983, at 5:30 p.m., in the fifth floor Conference Roan of City Hall, for the purpose of conducting interviews for Planning -Commission appoint- ments. Mayor`cf the City of Costa Mesa ATTEST: +` Ci :-Clerk of the City of, Costa M a