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HomeMy WebLinkAbout06/05/2000 - City CouncilROLL CALL REGULAR MEETING OF THE CITY COUNCIL CITY OF COSTA MESA JUNE 5, 2000 The City Council of the City of Costa Mesa, California, met in regular session June 5, 2000, at .6:30 p.m., in the Council Chambers of City Hall, 77 Fair Drive, Costa Mesa. The meeting was called to order by the Mayor, followed by the Pledge of Allegiance to the Flag led by Cub Scout Pack 301, First Year Webelos, and invocation by Pastor Jerry Hollobaugh, South Coast Christian Church.' Council Members Present: Council Members Absent: Officials Present: Mayor Gary Monahan Mayor Pro Tem Libby Cowan Council Member Joe Erickson Council Member Heather Somers Council Member Linda Dixon None City Manager Allan Roeder City Attorney Jerry Scheer Development Services Director Donald Lamm Public Services Director William Morris Parks Project Manager Dave Alkema Neighborhood Improvement Manager Muriel Ullman Police Lieutenant Lester Gogerty Associate Planner David Brantley Assistant to the_ City Manager Ann Shultz Deputy City Clerk Mary Elliott MINUTES On motion by Council Member Erickson, seconded by Council May 15, 2000 Member Dixon, and carried 5-0, the minutes of the regular meeting of May 15, 2000, were approved as distributed. ORDINANCE AND A motion was made by Council Member Erickson, seconded by RESOLUTIONS Council Member Dixon, and carried 5-0, to read all ordinances and resolutions by title only. PRESENTATION Mayor Monahan presented the Mayor's Award to Linda Sneen Mayor's Award in recognition of her dedication to children in the community and to the Davis Education Center. He commended her outstanding leadership skills and her approach to meeting school goals. PRESENTATION In recognition of National Library Week," Mayor Monahan Bookmark Design announced the winners of the Orange County Public Library Contest bookmark design contest, "Once Upon a Mi;lenrium..." for the Costa Mesa and Mesa Verde; Libraries: -Kindergarten and 2nd grade students Jessica Auella and Alina Carnahan; 3' and 4th grade students Eric Chou and Ryan Redding; 5th and 6tn 1 1 IJL5 grade students Valencia Jabron and Matthew Redding; and 7" through 9th grade students Monica Yanez and Jessica Edwards. PRESENTATION Mayor Monahan read a proclamation recognizing the U.S. Army "Army Day" Southern California Recruiting Battalion for their efforts to Proclamation ensure the strong defense of the country, and proclaiming June 24, 2000, as "Army Day". He presented the document to Captain Mark Paget, Company Commander, and Sergeant First Class James Banks. PRESENTATION Mayor Monahan commended the following persons for hosting Neighborhood Neighborhood Watch Meetings during the month of May, Watch Meeting 2000: Carm Gullo, James Street, on May 13; and Paul and Diane Hill, Londonderry Street, on May 23. He announced that Mr. Gullo had forwarded a letter to the City commending Crime Prevention Specialist Annette Pereda for her efforts regarding the Neighborhood'Watch Program. ORAL COMMUNI- Robert Graham, 3260 Dakota Avenue, Costa Mesa, addressed CATIONS the West 19th Street commercial area, commenting that a West 19" Street "customer base" could be established for the area should the Extension road be extended into Huntington Beach. He reiterated his complaints that the City has not conducted a study into the feasibility of the bridge, and asked for documentation supporting the original decision regarding its elimination. The City Manager responded that documentation included the testimony prepared for the 1992 General Plan public hearings, which are included in the record, the traffic model which is a part of the General Plan document, and the housing element which was adopted along with the Plan. Police Department Mildred Nicholson, 2063 Republic Avenue, Costa Mesa, Commendation; commended the Costa Mesa Police Department for their Oak Street /Presi- excellent work. She reported that a large shipping container dent Place Street had been parked on the east corner of Oak Street and Repair President Place for 3 to 4 weeks which had, in her opinion, permanently damaged the street. She asked that precautions be taken to prevent this type of occurrence. House of Represen- Doug Scribner, 321 Avocado.Street, No. P, Costa Mesa, asked tatives Bill HR 2987 for Council's opposition to . House of Representative Bill HR 2987, Methamphetamine ' Anti -Proliferation Act, which classifies the illegal distribution of information, including that relating to medical marijuana, as a Federal offense. . He provided Council with information regarding this issue. Police and Fire Don Nicholson, 2063 Republic Avenue, Costa Mesa, Department Appre- complimented the Costa Mesa Police and Fire Departments, ciation; Fireworks and suggested designating a special day on their behalf. He objected. to legal fireworks 1n Costa Mesa, and proposed that the City follow the lead of neighboring cities who outlaw these activities. Council Member Somers announced that June 27, 2000, 'is scheduled as Police and Fire Departments Appreciation Day, and tickets may be obtained from _the Costa Mesa Chamber of Commerce. Shopping Carts; Paul Bunney, 984 Linden Place, Costa Mesa, commented' on Graffiti the shopping cart problem which appears to have escalated recently, and encouraged citizens to report abandoned carts. He praised City staff for their handling of the graffiti problem, and proposed that ' staff regularly patrol Wallace Avenue between 19t' and Hamilton Streets, Hamilton Street between Harbor Boulevard and Placentia Avenue. Neighborhood Dis- Martin Millard, 2973 Harbor Boulevard, Costa Mesa, expressed integration; Baker concern .regarding the general' disintegration of several Costa Street Telephone Mesa areas citing the Mesa North neighborhood which has Booth severe problems with large vending trucks. He indicated that the parkway opposite Paularino School is littered with trash. site He addressed the booth at the southeast corner of Baker Street and Grace Lane noting that there are two broken panes which are a hazard to pedestrians. Mr. Millard felt that efforts on the west side of Costa Mesa had come to a "dead end". Council Member Somers asked staff to investigate the possible removal of the above -noted telephone booth. 2000-2001 Budget Tom Egan, 1893 Parkview Circle, Costa Mesa, objected to the lack of sufficient time to review the budget, the lack, of opportunity for public comment on the budget, and the lack of staff time to research questions from the public. Mayor Monahan reviewed the opportunities to discuss the budget, and the City Manager confirmed that there are copies of the budget at both public libraries, ;in the City Clerk's office, and on the City's website' (www.cil.costa-mesa.ca.us). The City Manager added that, a budget study session will be held on June 12, 2000, at' 4:30 p.m., 'a meeting to present the budget to the public will be advertised in the newspapers, and the budget will be presented as a ;public hearing at the meeting of June 19, 2000. He indicated that during that two-week time period, City staff is available to speak with all members of the public who express an interest. West Side Project Mike Beery, 2522 Orange Avenue, No. D, Costa Mesa, addressed a project` which includes constructing 22 single- family homes in an area he referred to as "instant jungle" on the west side of Costa Mesa, adjacent to Canyon Drive and Victoria Street. He suggea;ted that Council consider the alterations in the+ elevation :requirements being requested. Secondly, as a member of the Westside Improvement Association, Mr. Beery thanked Council Member Somers for her support of their efforts. CONSENT The following items were removed from the Consent Calendar: CALENDAR Item No. 2, Notice of Intention to Appeal or Solicit for Charitable Purpose from United Natiors Foundation; Item No. 3, Notice of Intention to Appeal or Solicit for Charitable Purpose from Better' World Fund, Inc.; Item No. 17, Title X, Housing and Community Development Act, new Housing and Urban Development regulations on Lead -Based Paint Hazards in Federally -owned housing and housing receiving Federal assistance; and Item No. 18, Cooperative Agreement with Orange County Transportation Authority for construction of Minimum Operating Segment 2 Transitway Improvements. MOTION/Approved On motion by Mayor Pro Tem Cowan, seconded by Council Except Items 2, 3, Member Erickson, and carried 5-0, the remaining Consent 17 and 18 Calendar items were approved ;as recommended.. READING FOLDER The following Reading Folder items were received and processed: . 4- L 117 Claims Claims received by the Deputy City Clerk: Ryan Grant; Rosemary Poecker; and Todd Jeffrey Uhlick. Alcoholic Beverage Alcoholic Beverage Control License request from "The Control License Office" (formerly. Legends), 580 Anton Boulevard, Suite 201, for a person-to-person and premise -to -premise transfer of a Type 47 ABC license (on -sale general for a bona fide eating place). . Public Utilities Notice that Southern California Gas Company (SoCalGas) Commission has filed Application No. 00-05-002 with the Public Utilities Commission requesting an increase in gas rates to pay for shareholder incentives related to SoCalGas's performance of its Demand -Sale Management programs in 1995 and 1997, Low -Income Energy Efficiency programs in 1998 and 1999, and 1999 Energy Efficiency programs. SET FOR PUBLIC Resolution 00-36 was adopted: A RESOLUTION OF THE CITY HEARING/Adopted COUNCIL OF THE CITY 'OF COSTA MESA, CALIFORNIA, 'Resolution 00-36, DECLARING ITS INTENTION TO ORDER THE VACATION OF Setting Hearing for EXCESS RIGHT-OF-WAY ON ORANGE AVENUE NORTH OF July 3, 2000, EAST 17T" STREET, setting a public hearing on July 3, 2000, Orange Vacation at 6:30 p.m., in the. Council Chambers of City Hall. WARRANTS The following .warrants were approved: Approved Warrant Warrant Resolution 1798, funding Payroll 010 for 1798/Payroll 010 $1,564,946,15, and City operating expenses for $534,939.99, including payroll deductions. Approved Warrant Warrant Resolution 1799, funding City operating expenses 1799 for $1,225,305.37. Approved Warrant Warrant Resolution 1800, funding Payroll 011 for 1800/Payroll 011 $1,577,126.61, and City operating expenses for $547,822.92, including payroll deductions. ADMINISTRATIVE Resolution 00-37 was adopted: A RESOLUTION OF THE CITY ACTIONS/Adopted COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, Resolution 00-37, APPROVING THE SUBMITTAL OF ELEVEN IMPROVEMENT Approving Submittal PROJECT(S) TO THE ORANGE COUNTY TRANSPORTATION of Improvement AUTHORITY (OCTA) FOR FUNDING UNDER THE COMBINED Projects to OCTA TRANSPORTATION FUNDING PROGRAM, for Fiscal Years 2000-2001 to 2005-2006. . Awarded Bid Item Bids received for Bid Item No. 1044, Purchase of Two New No. 1044, Copiers, Copiers and Three -Year Rental of Two Additional New to Ikon Copiers, including three-year full maintenance service for all four copiers, are on file in the City Clerk's office.. The contract was awarded to Ikon Office Solutions, Inc., 333 City Boulevard West, Orange, for an amount not to exceed $86,968.00, including . sales tax (the first year amount of $36,127.00 includes the purchase of the two copiers, rental for the additional two copiers, plus full maintenance service for all four copiers). Awarded Slurry and Bids received for 1999-2000 Slurry Seal and Crack Seal, Crack Seal, Project Project No. 00-06, are on file in the City Clerk's office. The 00-06, to California contract was awarded to California Pavement Maintenance Pavement Company, Inc., 9390 Elder Creek Road, Sacramento, for $267,056.66. Accepted Street Street improvements at 275 McCormick . Avenue were Improvements on completed to the satisfaction; of the Public Services Director. by McCormick Avenue GTI Construction, 25801 Obrero Drive, Suite 5, Mission Viejo, by GTI, EP No. in connection with Encroachment Permit No. PS00-00056. PS00-00056 The work was accepted, and authorization was given to refund the $7,644.00 cash deposit. Accepted Street Street improvements at 180 Merrill Place were completed to Improvements on the satisfaction of the Public Services Director by Michael Merrill Place by Pentz, 180 Costae Mesa Street, Costa Mesa, in connection with Pentz, EP No. PSOO- Encroachment Permit No. PS00-00141 (DR -99-06). The work 00141 (DR -99-06) was accepted, and authorization was given to refund the $7,707.20 cash deposit. Accepted Street Street improvements at 2329, 2330, 2335 and 2336 Purdue Improvements on Drive were completed to the ,satisfaction of the Public Services Purdue Drive by Director by Philip Walsh Sr., Post Office Box 1580, Cypress, in Walsh, EP No. connection with Encroachment Permit No. PS00-00072. The PS00-00072 work was accepted, and authorization was given to refund the $11,798.90 cash deposit. Approved Agree- A license agreement was approved with Waldorf School, 2350 ment with Waldorf Canyon Drive, Costa Mesa, for Park Rangers to patrol playing School for Park fields on weekends', and the' Mayor was authorized to sign on Ranger Patrol behalf of the City. Approved Renewal Renewal of a contract was approved with Mike Linares, Inc., of Contract with 514 Calle Cuadra, San Clemente, in an amount not to exceed Mike Linares for $74,000.00, for , Community Development Block Grant CDBG/HOME Staff (CDBG)/HOME contract staff services, and the City Manager Services was authorized to enter into the agreement on behalf of the City. Approved Agree- Agreement No. SA-110-OOF was approved with the 32nd ment with 32' District Agricultural„ Association, for the City to provide police District for Orange officers for traffic management at the 2000 Orange County County Fair Traffic Fair, July 14 through 30, 2000, in an amount not to exceed Management $120,000.00, and 'the Police Chief was authorized to sign on behalf of the City. Awarded Contract Bids for Site Improvements at the Costa Mesa Bark Park for Bark Park Site located at TeWinkle Park, Project No. 00-07, are on file in the Improvements to City Clerk's office. The contract was awarded to TruGreen TruGreen LandCare; LandCare, 950 North Tustin Avenue, Anaheim, for Approved Expendi- $116,321.40; and expenditure of the appropriation balance to ture incorporate additive, bid items that exceed the ten percent limit established by Council Policy �No. 700-1 was approved. Accepted Work for Replacement and Restoration of Roofs at Fire Station Nos. 2 Restoration of Roofs and 4, and Police 'Station, and Installation of Drains, Project at Fire Stations 2 No. 00-01, was completed 'to the satisfaction of the Public and 4, and Police Services Director on May 3, 2000, by Rey -Crest Roofing and Station; and Installa- Waterproofing Company, 3065 Verdugo Road,.. Los Angeles. tion of Drains, Pro- The work was accepted; the Deputy City Clerk was authorized ject No. 00-01, by to file a Notice of Completion; authorization was given to Rey -Crest Roofing release retention monies. 35 days thereafter; the Labor and Material Bond was , ordered 'exonerated 7 months thereafter; 1 1 1 J, f and the Performance Bond was ordered exonerated 12 months thereafter. Measure "M" The following action was taken -in connection with Measure Eligibility "M Eligibility: Approved Mainte- Maintenance of Effort for Fiscal Year 2000-2001 was nance of Effort approved. Approved Capital Seven-year Measure "M" Capital Improvement Program was Improvement Plan approved. Approved Program Local Pavement Management Program was approved. Adopted Resolution Resolution 00-38 was adopted: A RESOLUTION OF THE 00-38 Regarding CITY COUNCIL OF . THE CITY OF COSTA MESA, Circulation Element CALIFORNIA,;f; ,.CONCERNING THE STATUS OF THE CIRCULATION ELEMENT FOR THE CITY OF COSTA MESA. Adopted Resolution Resolution 00-39 was adopted: A RESOLUTION OF THE CITY 00-39, Authorizing COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, TO Sole Source Pur- AUTHORIZE AND AWARD A SOLE SOURCE CONTRACT TO chase for Computer UPGRADE THE CITY'S COMPUTER NETWORK FOR THE M.I.S. Upgrade from (MANAGEMENT INFORMATION SYSTEMS) DIVISION, to Hewlett Packard; Hewlett Packard, 1421 South Manhattan Avenue, Fullerton, for Approved Budget an amount not to exceed $130,000.00; and Budget Adjustment 00-129 Adjustment No. 00-129 was approved for $130,000.00 to appropriate adequate funds necessary for the project. Approved Agree- Cooperative Agreement No. 12-395-A-1 was approved with ment No. 12-395-A- the California Department of Transportation (CALTRANS) for 1 with CALTRANS the 1-405/SR-73 Confluence Project, which includes for 1-405/SR-73 redesignating $3,922,000.00 from CALTRANS right-of-way Confluence Project related work to construction work; and $411,000.00 was transferred to CALTRANS which represents interest earnings on Transportation Corridors Agency funds on .deposit with the City; and the Mayor and Deputy City Clerk were authorized to sign the agreement on behalf of the City. BUSINESS PERMITS Item Nos. 2 and 3 on the Consent Calendar were presented: United Nations Notice of Intention to Appeal or Solicit for Charitable Foundation, Inc. Purpose from United Nations Foundation, Inc., 1301 Connecticut Avenue, N.W., Suite 700, Washington, D.C., by soliciting funds from June 1, 2000, to May 31, 2000, from specific individuals and corporations who have contributed to similar philanthropic organizations in the past; and Better World Fund, Notice of Intention , to ..Appeal or Solicit for Charitable Inc. Purpose from`; Better- World Fund, Inc., 1301 Connecticut Avenue, N.W., Suite 700, Washington, D.C., by soliciting funds from June 1, 2000, to May 31, 2000, from specific individuals and corporations who have contributed to similar philanthropic organizations in the past. Mayor Monahan expressed concern regarding. the local involvement of these organizations since they are world wide, and indicated that he would oppose approval of the permits. Council Member Erickson commented that regarding solicitation permits, he considers the percentage of the funds which will be used for the purpose for which they are intended, and .noted that 98Y2 percent of the, monies raised by these two organizations will, be directed to the charities. MOTION/Approved On motion by Council Member Erickson, seconded by Mayor Permits Pro Tem Cowan, and carried 4-1, Mayor Monahan voting no, the permits were approved pursuant to Municipal Code Section 9-127(d). Title X, Housing and Item No. 17 on the Consent -Calendar was presented: Title X, Community Deve- Housing and Community Development Act, new Housing and lopment Act, Lead Urban Development (HUD) regulations on Lead -Based Paint Based Paint Hazards in Federally -owned; housing and housing receiving Hazards Federal assistance: Authorize the City Manager to amend the guidelines for the Neighborhood Improvement Grant Program to include City expenditure of HOME funds and increased grants to property owners: to undertake lead-based paint assessment through abatement, subject to review and approval by the City Attorney. Authorize the City Manager to amend the guidelines for the Single -Family ,Rehabilitation Loan Program to include City expenditure of HOME Junds and increased grants for property owners to undertake lead-based paint assessment through abatement, subject to review and approval by the City Attorney. Council Member Somers asked for a presentation from the Neighborhood Improvement Manager, who provided a history of the proposed project and explained the procedures. Council Member Somers questioned 'the advisability of committing to this program immediately. Discussion ensued regarding various aspects of the program. Motion to Table A motion was made by Cou'ncil Member Somers to table this Died item awaiting further information from the City's outside attorney or HUD. She indicated that the information is vague, and hesitated to commit unknown funds to this program. The motion died for lack of a second. Responding to a question from Mayor Monahan, the Neighborhood Improvement Manager clarified that the ; City is required to follow this program. The City Manager suggested that the program be presented at a Council study session and that the HUD representative be in attendance. Doug Scribner, 321, Avocado Street, No. P, Costa Mesa, asked how many cases of lead-based poisoning occurred last year in Costa Mesa, and inquired if the City is being coerced into participating in this program. Mayor Monahan' apprised Mr. Scribner of the fact that to not participate in the program would mean surrendering Federal grant monies. Mayor Pro Tem Cowan reported that the HUD regulations relate to lead-based paint hazards' in Federally -owned houses and households receiving Federal assistance. She concurred with Council Member Somers concerns. 1 MOTION/Referred A motion was made by Mayor Pro Tem Cowan, seconded by to the Study Council Member Somers, and carried 5-0, to refer this item to Session of July 10, the study session of. July 10, 2000, deciding. at that time 2000 whether to place it on the Council agenda of July 17, 2000. The City Manager added that all cities face the same predicament. Council Member Erickson supported the program commenting that Costa Mesa residents are entitled to the Federal tax dollars from the grant monies. Council Member Somers asked that improvements for the fall Neighbors -for - Neighbors program exclude the use of paint. Agreement with Item 18 on the Consent Calendar was presented: Cooperative OCTA for MOS2 agreement with Or County Transportation Authority (OCTA) for construction of Minimum Operating Segment (MOS) 2 Transitway Improvements. The Public Services Director stated that the final;; agreements from OCTA have not been received, and asked that the item be withdrawn and considered MOTION again at a later date. On motion by Council Member Erickson, Withdrawn seconded by Council Member Dixon, and carried 5-0, the item was withdrawn. PUBLIC HEARING The Deputy City Clerk announced that this was the time and Rezone Petition place set for the public hearing to consider Rezone Petition R- R -00-01, Cefalia 00-01, Jim Cefalia,' ' 1649 Bayside Drive, Newport Beach, for pre -annexation zoning of unincorporated property at 2087 Garden Lane to Medium Density Residential (R2 -MD); and a resolution confirming the application of the master property tax transfer agreement for the proposed Cefalia annexation (LAFCO application No. CA 99-12), Assessor Parcel No. 426-221-34. The Affidavit of Publication is on file in the City Clerk's office. No communications were received. The Development Services Director reviewed the Agenda Report dated May 25, 2000. Jim Cefalia, 930 West Ocean Front, Newport Beach, reported that the Planning Division had stated that this property was slated for annexation. There being no other speakers, the Mayor closed the public hearing. MOTION/Ordinance On motion by Mayor Pro Tem Cowan, seconded by Council 00-9 Given First Member Erickson, and carried 5-0, the following action was Reading; Adopted taken: Resolution 00-40 Ordinance 00-9 was given first reading: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING THE PREZONING OF PROPERTY ADDRESSED AS 2087 GARDEN LANE (ASSESSOR PARCEL NO. 426-221-34) TO R2 -MD BY ADOPTION OF REZONE PETITION R-00-01. Second reading and adoption are scheduled for the meeting of June 19, 2000. Resolution 00-40 was adopted: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, CONFIRMING THE APPLICATION OF THE MASTER PROPERTY TAX TRANSFER AGREEMENT FOR THE PROPOSED CEFALIA ANNEXATION (LAFCO APPLICATION NO. CA 99-12), ASSESSOR PARCEL NO. 426-221-34. PUBLIC HEARING The Deputy City Clerk announced that this was the time and Council Review of place set for the public hearing to consider a request from DR-00-05/VT- Council Member Somers for City Council review of the 15991, Cefalia following projects: Development Review DR -00-05, for Jim Cefalia, 1649 Bayside Drive, Newport Beach, for a five -unit residential small -lot subdivision project located at 2087 Garden Lane, in an R2 -MD zone; and Vesting Tentative Tract Map VT - 15991 for a five -lot residential subdivision with two common lots. The Affidavit of Publishing and Mailing are on file in the City Clerk's office. No communications were received. The Development Services Director summarized the Agenda Report dated May 25, 2000. Council Member Somers announced that she would abstain from voting on this item due to the proximity of the property to ;her home, and left the Council Chambers at 8:00 p.m. Jim Cefalia, 930 West Ocean Front, Newport Beach, explained the procedure for purchasing the property which included first consulting with the 'City's Planning Division to determine land use for the site. He and the Associate Planner responded to questions from Council regarding potential parking problems. Lisa Gustafson, 326 East 16th' Street, Costa Mesa, objected to this and similar projects which overcrowd the area and bring down the neighborhood. She commented that the proposed project offers no yard space -and a limited living space. At 8:10 p.m., Council Member Somers returned to the Council Chambers. Dennis Wilkinson, 17932 Sky Park Circle, Suite A, Irvine, an architect, stated that he had reviewed Mr. Cefalia's plans for the project, and commented that over a period of months, Mr. Cefalia had met with City staff to determine the requirements for the development, including open space, parking, etc. He, as a design professional, expressed concern that after working with City, a project may denied in the "eleventh hour". Sandra Genis, 1586 Myrtlewood Street, Costa Mesa, stated that the parking for this type of development should be addressed since street frontage per unit is limited, as opposed to a typical R1 development. Roger Grable, 19100 Von Karman Avenue, Irvine, attorney representing Mr. Cefalia, provided a brief background and stated that the project meets; all of the City's standards. He encouraged Council to allow Mr. Cefalia to proceed. The City Attorney responded- to a question from Council Member Erickson by stating that the applicant would be able to build the project without having it divided into a small -lot subdivision using a common -lot type project with five units which are not sold individually. Kerry Smith, 3400 Avenue of the Arts, Suite G104, Costa Mesa, indicated that in a small, -lot subdivision, residents park in their garages and guest parking is restricted to guests. Skip Ziccardi, Post Office Box 10035, Newport Beach, owner of property at 2089 Garden Larne, Costa Mesa, directly north` of the project, agreed that parking is a concern but thought that it 123 was only equitable that Mr. Cefalia be allowed to proceed with his project. Robin Leffler, 3025 Samoa Place, Costa Mesa, observed that the east side of Costa Mesa is overcrowded which places a burden on the neighborhood, noting increased traffic congestion., parking, and infrastructure problems. Janet Ranitch, 203 East 21St Street, Costa Mesa, addressed traffic concerns in her neighborhood. There being no other speakers, the Mayor closed the public hearing. MOTION/Adopted A motion was made by Council Member Dixon seconded by Resolution 00-41 Council Member Erickson, and carried 3-1, Mayor Monahan voting and Resolution no, Council Member Somers abstaining, to adopt Resolution 00- 00-42, Denying 41, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DR -00-05 and COSTA MESA, CALIFORNIA, DENYING DEVELOPMENT VT -15991 REVIEW DR -00-05; to adopt Resolution 00-42, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DENYING VESTING TENTATIVE TRACT MAP VT - 15991, based on the fact that the project is not compatible and harmonious with other developments, the uses in the area of the project will generate excess traffic and. parking needs, the site cannot accommodate the excess parking and the existing demand for street parking and parking generated by the primary school in relation to student pickup and drop-off, the problem is exacerbated by the substandard length of the proposed driveways which cannot accommodate an overflow of parking on site. Council Member Erickson expressed his concern regarding the guest parking space being located in the driveway of one of the units. He emphasized the need to, be specific in the findings, especially the importance of the site being located midway between Kaiser Primary School and -Kaiser Elementary School, the already limited safe parking due to the .transit of children to and from school, and noting, in particular, location of the above- mentioned guest parking. Mayor Monahan opposed the motion because Mr. Cefalia has met all the requirements of the City,' and proceeded with the design, which includes no variances, after purchasing the property. He agreed that Council should study the problem but did not concur with stopping this project, and thought that the City could have a legal problem. Council Member Erickson mentioned that he would have a difficult time denying the project if the applicant had arranged for additional on-site parking. Council Member Dixon stated that her priority is the people of Costa Mesa, the quality of life, and the way they live, and she needed to look at each project individually and do what she thinks is best for the community. She hoped that Mr. Cefalia would return with an improved design. RECESS The Mayor declared a recess at 8:35 p.m., and reconvened the meeting at 8:45 p.m. PUBLIC HEARING The Deputy City Clerk announced that this was the time and place Council Review of set for the public hearing to consider a request from Council DR -00-12, Cefalia Member Somers for City Council review of Development Review DR -00-12, for Joseph Cefalia Jr., 818 West Balboa Boulevard, Q Newport Beach, for a four -unit residential small -lot subdivision project located at 215 and 219 East 16th Street in an R2 -MD zone. Environmental Determination: Exempt. The Affidavit of Publication is on file in the City Clerk's office. No communications were received. The Development Services Director reviewed the Agenda Report dated May 25, 2000. Joseph Cefalia, Jr., 818 West Balboa Boulevard, Newport Beach, reported on the progress of the project: the plans, including grading plans, are completed; a tentative tract map is ready to be submitted, and soil tests are' finished. He reviewed various aspects of the work. Doug Scribner, 321 Avocado Street, No. P, Costa Mesa, objected to the City changing the rules in the middle of the process. Lisa Gustafson, 326 East 16th Street, Costa Mesa, complained that 16 Street is overbuth rdened with homes and traffic caused by speculators from other cities. She mentioned that during the widening of East 17th Street, 16th Street will bear additional traffic. She suggested downsizing the project. Julian Wilk, 179 Buoy Street, Costa Mesa, opposed changing the rules in the middle of the process. He supported the applicant, emphasizing the time that he has invested in the work, plus his expenses. Liz McFarland, 315Y2 East 16th Street, Costa Mesa, stated that parking and trash have not been a problem with the existing six, two-story buildings located across the street from her home. She supported the project, and encouraged Council to allow the replacement of the four older buildings. Jim Cohan, Castle Realty, 1750 Whittier Avenue, No. 11, Costa Mesa, speaking in favor of the project, noted that every homeowner does not want a yard and the attendant work. He suggested imposing parking restrictions to correct any problem, and felt that the project would be a credit to the City. Eleanor Egan, 1893 Parkview Circle, Costa Mesa, commented that it is the role of government to mediate between the rights of citizens, and in this instance, both developers and citizens have economic interest in the project. Martin Millard, 2973 Harbor Boulevard, Costa Mesa, observed that the east side of Costa Mesa is evolving into an area not unlike the west side of Costa Mesa due to the density. He supported scaling back the project and creating additional on-site parking. There being no other speakers, the Mayor closed the public hearing. Council Member Somers stated that the Council has a set of goals and objectives, one of which is to downsize and improve neighborhoods. She declared ' the project incompatible with the neighborhood, stating that it will generate excessive amounts of traffic, exceed acceptable parking levels for the site, and create a potential trash problem. 125 MOTION/Adopted A motion was made by Council Member Somers, seconded by Resolution 00-43, Council Member Dixon, to adopt Resolution 00-43, A Denying DR -00-12 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DENYING DEVELOPMENT REVIEW DR - 00 -12, directing that the project be reconsidered by the Planning Division if the project density is changed, modifications are made to the size of the elements, and the parking plan is changed. Council Member Erickson opposed the motion, stating that the project is an improvement over that which currently exists. SUBSTITUTE A substitute motion was made by Mayor Monahan, seconded MOTION/To . by Council Member Erickson, to adopt a resolution approving Approve DR -00-12 Development Review DR -00-12. The substitute motion failed Failed to Carry to carry 3-2, Council Members Cowan, Somers, and Dixon voting no. The original motion carried 3-2, Council Members Monahan and Erickson voting no, PUBLIC HEARING The Deputy City Clerk announced that this was the time and GP -00-01, Housing place set for the public hearing to consider a resolution Element approving General Plan Amendment GP -00-01, adopting an updated housing element. Environmental Determination: Negative Declaration. The Affidavit of Publication is on file in the City Clerk's office. No communications were received. The Development Services Director summarized the Agenda Report dated May 16, 2000. Council Member Somers addressed issues in the Housing Element, stating that the City must support cpnstruction of high-quality, single-family residences. There being no speakers, the Mayor closed the public hearing. MOTION/Adopted On motion by Mayor Pro Tem Cowan, seconded by Council Resolution 00-44 Member Somers, and carried 5-0, Resolution 00-44 was adopted: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING AN UPDATED HOUSING ELEMENT, directing staff to transmit the Housing Element to the State of California Housing and Community Development Department for certification. PUBLIC HEARING The Deputy City Clerk announced that this was the time and Traffic Impact Fees place set for the public hearing to consider the annual review of Citywide Traffic Impact Fees: Resolution to continue an interim fee of $149.00 per average daily trip end (ADT) as the citywide traffic impact fee and to continue the existing incentive program for new residential, commercial, and industrial development in Costa Mesa by as assessing traffic impact fees on an incremental basis until June 30, 2001, or the next annual review of traffic impact fee program, whichever is earlier. Annual accounting of the Citywide traffic impact fee program. The Affidavit of Publication is on file in the City Clerk's office. No communications were received. The Public Services Director reviewed the Agenda Report dated May 24, 2000. A39 . Council Member Somers asked staff to research the possibility of tiered impact fees for larger developments. Sandra Genis 1586 Myrtlewood Street, Costa Mesa, expressed concern that the trip fees charged are significantly below the calculated cost for new trips, and stated that taxpayers will be burdened with the; difference should the interim fee be retained. She addressed the environmental documentation produced by the City which states that impacts are mitigated because the trip fee will be paid, noting that since the trip fee does not reflect the entire cost of the trip, the documentation is vulnerable. MOTION/Continued On motion by Council Member Erickson, seconded by Council to June 19, 2000 Member Somers, . and carried 5-0, the public hearing was continued to the meeting of June 19, 2000, directing staff to provide the information requested by Council Member Somers. Doug Scribner, 321 Avocado Street, No. P, Costa Mesa, asked why Council and taxpayer time is being wasted. discussing an item that should have been worked out ahead of time and then brought to Council.. He opined that public funding ruins the arts. Mayor Pro Tem Cowan responded that Council discussions are a public process PUBLIC HEARING Council Member Dixon encouraged the City to support the arts this was and suggested providing relief. for a portion of the traffic impact Small -Lot Residen- fees for new developments and redevelopments which consider substantially support the arts-. She asked for Council support tial Development of her request that staff research and recommend changes to any new the 'traffic impact fees which would further cultural arts that his project at Bay and 'Parsons Streets (DR -00-04) was programs and artistic projects within the City, for consideration approved in March, 2000, and therefore, should not be at the study session of August 14, 2000. Mayor Pro Tem included in the moratorium; Gregory W. Staples, 230 Cottage Cowan expressed her interest in investigating the subject. Place, Costa Mesa, supporting a moratorium on development of Mayor Monahan suggested that Council Member Dixon work small lots currently zoned for single-family residences, to multi - closely with staff to further define the subject. MOTION/Directions A motion was made by Council Member Dixon, seconded by Given to Staff for Council Member Somers, and carried 5-0, directing staff to August 14, 2000, research and recommend changes in the current traffic impact Study Session fee program for cultural and artistic projects, and to place this item on the study session agenda of August 14, 2000. Doug Scribner, 321 Avocado Street, No. P, Costa Mesa, asked why Council and taxpayer time is being wasted. discussing an item that should have been worked out ahead of time and then brought to Council.. He opined that public funding ruins the arts. Mayor Pro Tem Cowan responded that Council discussions are a public process PUBLIC HEARING The Deputy City Clerk announced that this was the time and Small -Lot Residen- place set for the. public hearing to consider an urgency tial Development ordinance to place a moratorium on any new single-family, Moratorium small -lot, land -use applications, prohibiting the approval of any land -use applications for small -lot residential developments submitted after May 15, 2000. The Affidavit of Publication is on file in the City Clerk's' office. Communications were received from Robert L. Johnson, Commercial Bankers Real Estate, 901 Dover Drive, Suite 106, Newport Beach, stating that his project at Bay and 'Parsons Streets (DR -00-04) was approved in March, 2000, and therefore, should not be included in the moratorium; Gregory W. Staples, 230 Cottage Place, Costa Mesa, supporting a moratorium on development of small lots currently zoned for single-family residences, to multi - residential use; and,' Robin Leffler, 3025 Samoa Place, Costa Mesa,. giving her reasons ; for supporting the proposed moratorium. The Development Services Director summarized the Agenda Report dated May 25, 2000, stating that the moratorium would be in effect for a period of 45 days, and would affect property with three or four units. He clarified that the moratorium would affect small -lot, single-family homes throughout the entire city. Roger Grable, 19100 Von Karman Avenue, Irvine, Attorney at Law, was assured by the Development Services Director that a project which has received land -use approval, but has not received approval for the subdivision map, will be exempt from the moratorium under ordinance Section 2, Item 2, "This moratorium does not apply to: (b), "An application to subdivide the land of a prior residential project whose application for discretionary approval was filed before May 15, 2000." Mr. Grable asked for an additional exemption which would allow a proj:e,;ct to proceed if filed prior to May 15, 2000, and which is to be redesigned or reheard. Gregory W. Staples, 230 Cottage Place, Costa Mesa, supported the moratorium, stating that density lowers property values. He stated that he purchased his single-family home on the east side assuming that the neighborhood would retain its character. Bob Johnston, Johnson Real Estate, 901 Dover Drive, Newport Beach, asked about the status of his project which had been submitted in January, 2000, and approved on March 16, 2000. The Development Services Director replied that Mr. Johnston's project is exempt. Steven McNash, 2292 Canyon Drive, Costa Mesa, asked about his property, a large piece of land in an open area, which he intends to sell for development when he retires. Dennis Wilkinson, 17932 Sky Park, Circle, Suite A, Irvine, addressed Mr. Johnston's project located on Bay and Parsons Streets on the west side, describing the units, and stating that they will be a benefit to the community. Eleanor Egan, 1893 Parkview Circle, Costa Mesa, supported the .moratorium. She indicated that a study by Arroyo and Associates, commissioned by the City, shows that of 12 comparable cities in the state, Costa Mesa has the highest ratio of rental to owner -occupied units. She stated that density in itself is not bad but requires a tremendous investment of public resources. Robin Leffler, 3025 Samoa Place, Costa Mesa, stated that Council should have an overview of Costa Mesa, a definition of "who we are and where '"we really intend to go". She expressed concern for the overall residential character of the City. She suggested considering every application in light of the whole. Ms. Leffler supported the moratorium. Mark Korando, 582 Park Drive, Costa Mesa, urged Council to enact the moratorium. He noted a need to lower the density on the west side as well as the east side. Paul Bunney, 984 Linden Place, Costa Mesa, supported the moratorium. There being no other speakers, the Mayor closed the public hearing. MOTION/To Adopt A motion was made by Council Member Somers to adopt an Urgency Ordinance urgency ordinance - imposing a moratorium on small -lot 00-10 residential developments. Mayor Monahan asked the maker of the motion if she would be willing add the following as proposed by Mr. Grable: Section 2, Item 2(d), "An application to redesign a project whose denied after May 15, 2000." The maker of the motion declined the addition. Mayor Monahan stated that he would have supported the motion had this addition be ,accepted. He agreed that the small -lot standards need to be considered. . SUBSTITUTE A substitute motion was made by Council Member Erickson, MOTION/Adopted seconded by Council Member Somers, and carried 5-0, to Urgency Ordnance adopt Ordinance 00-10: AN URGENCY ORDINANCE OF THE 00-10 CITY COUNCIL OF THE CITY ,OF COSTA MESA, CALIFORNIA, IMPOSING A MORATORIUM, ON SMALL -LOT RESIDENTIAL DEVELOPMENTS, adding Section 2, Item 2(d), "An amended application to redesign a project if the original application was filed before May 15, 2000,' and denied between May 15, 2000, and June 5, 2000." Council Member Dixon supported the moratorium, noting that this ordinance allows Council to address issues in Costa Mesa, including drainage and the water supply, which were not previously mentioned. Mayor Monahan supported the moratorium, and ,mentioned his pleasure that Mr. Cefalia's project will be allowed to come forward. OLD BUSINESS The Deputy City Clerk presented the Landscape Parkway Landscape Parkway Demonstration Project Update. Demonstration Project Update Conceptual plans, for the 'Baker Street and Gisler Street landscape parkway demonstration projects; and directing staff to complete the construction documents and request bids for the projects as soon as possible. Alternative C, the preferred concept plan for the landscape and irrigation of the parkway on southbound Newport Boulevard from.Arlington Avenue to Fair Drive; and directing staff to work with the ,'Orange County Fairgrounds to formalize an agreement for its improvement and long-term maintenance. Review project locations on the west side of Costa Mesa to determine which site or sites are to be included in the Landscape Parkway Demonstration Project Program. The City's level of participation in a joint -effort project with the City of Newport Beach to renovate the upgrade the existing street medians on Irvine Avenue. The Public Services Director and Parks Project Manager summarized the Agenda report dated May 31, 2000. The Parks Project Manager reported that he has approached the 32"d District Agricultural Association regarding an equestrian trail around the perimeter of the Orange County Fairgrounds. Council Member Somers stated that according to the County's Master Plan of Bikeways and Equestrian Trails; the trails are designated to surround -the Fairgrounds and will connect to Talbert Park. She felt that prior to pursuing an agreement with the Fairgrounds; an equestrian trail in accordance with County maps should be. investigated, and she directed staff to research the location of all Costa Mesa trails. Council Member Somers addressed Site No. 12, Harbor Boulevard Parkway adjacent to the Costa Mesa Golf and Country Club, questioning the rationale behind choosing an area which has existing forested pathways, instead of an area such as No. 2, West 19th Street, west of Placentia Avenue, the south side of the street. She asked how the improvements at the Vista Center on Placentia Avenue would result in the loss of 21 parking spaces. The Parks Project Manager clarified that only a single wall -length construction planter had been considered. Council Member Somers asked for a price breakdown on use of the City's watering truck and purchasing a second watering truck versus irrigations costs. Eleanor Egan, 1893 Parkview Circle, Costa Mesa, reported that City Council adopted Community Objective No. 98-1317 which included developing a landscape demonstration project on the west side of the City. She indicated that staff had found reasons to reject every potential west side parkway. Mrs. Egan stated that the Agenda Report is an insult to residents of the west side and to City Council. She addressed flooding problems on West 19th Street, stating that new drainage should be installed in lieu of the proposed landscaping. Paul Bunney, 984 Linden Place, Costa Mesa, mentioned that there are many barren spots on the west side such as Harbor Boulevard and 19th Street. Christian Eric, 1825 Placentia Avenue, Costa Mesa, read a statement which addressed the need for west side landscaping. He encouraged Council support of at least one demonstration project on the west side to validate their support. Robin Leffler, 3025 Samoa Place, Costa Mesa, supported spending funds to upgrade the west side. Doug Scribner, 321 Avocado Street, No. P, Costa Mesa, concurred with Ms. Leffler, and asked that voluntary donations and labor be used. Mayor Pro Tem Cowan also supported a west side demonstration project, and expressed her frustration that requests for simple projects take so long. She explained the purpose of a demonstration project. MOTION/Gave A motion was made by Mayor Pro Tem Cowan, seconded by Directions to Staff Council Member Erickson, and carried 5-0, to approve the conceptual plans for the Baker Street and Gisler Street landscape parkway demonstration projects; to approve Alternative C, the preferred concept plan for the landscape and irrigation of the parkway on southbound Newport Boulevard; to approve in concept that if a bridal trail were to be considered ".; 130 for the Newport Boulevard parkway, that it be placed on the Orange County Fairgrounds property and be included in the Orange County Fairgrounds Master Plan, stipulating that equestrian riders be given full public access; to add irrigation to the installation of trees in tree wells on Placentia Avenue between Victoria and. 16' Streets; and to decline participation with the City of Newport Beach regarding street medians on Irvine Avenue. Council Member Erickson commented that the Vista Shopping Center on 19th Street will require more improvement than planting a few trees ,and bushes and painting, and hoped that monies spent on the improvements will not be wasted. He also expressed a desire for the City.to maintain the eucalyptus trees along Irvine Avenue.' Mayor Monahan supported the motion, and agreed with the : comments regarding the Vista Shopping Center and the Irvine'Avenue trees. OLD BUSINESS The Deputy City Clerk presented from the meeting of May 15, Reward for Graffiti 2000, second reading and adoption of Ordinance 00-7, Offenses regarding rewards for reporting; graffiti offenses. Council Member Somers asked why Item (4), Section 11-147, Reimbursement. of car phone ;airtime, had not been removed from the ordinance. The Deputy City Clerk confirmed that the item was removed at, the meeting of May 15, 2000. The City Attorney stated that the item would not be contained in the adopted ordinance. MOTION/Adopted On motion by Mayor Pro Tem Cowan, seconded by Council Ordinance 00-7 Member Somers, and carried '5-0, Ordinance 00-7 was given second reading and adopted: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING CHAPTER VII %2 OF TITLE 11 OF THE COSTA MESA MUNICIPAL CODE REGARDING REWARDS FOR GRAFFITI OFFENSES. OLD BUSINESS The Deputy City Clerk presented from the meeting of May 15, Procedures for 2000, second reading and adoption of Ordinance 00-8, Rehearings regarding procedures' for rehearings. Tamar Goldmann, 2324 College Way, Costa Mesa, reported on her involvement in a recent rehearing, noting that the procedures had been unclear:. She stated that a Council Member at that time had called up the item, and hoped that the ordinance will clarify what citizens need to do to preserve their legal rights. Mayor Pro Tem 'Cowan clarified that a rehearing request would not be brought forward by a Council Member, only by a private party. Ms. Goldmann indicated that it was actually the previous step that needed to be clarified. The City Attorney clarified that the purpose of the ordinance is to avoid the gamesmanship regarding when an application for rehearing may be filed and to avoid the contest determining whether or not the. item will be heard at the next regular Council meeting or ;delayed. He and the Deputy City Clerk explained the rehearing procedure. The City Attorney reported that the "review" is when Council calls up a matter, which would be an "appeal" in all other instances. 1 1 131 MOTION/Adopted On motion by Mayor Pro Tem Cowan, seconded by Council Ordinance 00-8 Member Dixon, and carried 5-0, Ordinance 00-8 was given second reading and adopted: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING SECTION 2-304 OF CHAPTER IX OF TITLE 2 OF THE COSTA MESA MUNICIPAL CODE REGARDING PROCEDURES FOR REHEARINGS. OLD BUSINESS The Deputy City Clerk presented from the meeting of May 15, ABC License for 2000, person-to-person transfer of a Type 21 ABC license for C & P Liquor C & P Liquor store (formerly A & M Liquor store), 586 West 19th Street. Mayor Monahan noted his abstention from voting on this item, and left the Council Chambers at 11:10 p.m. A copy of a communication forwarded to the ABC was received from Jacob Adam, A & M Liquor, 586 West 19' Street, Costa Mesa, asserting that there is no evidence to support the City's protest of the liquor license transfer. Peter Dushano, representing A & M Liquor, claimed that the protest is based on insufficient facts, and stated that imposition of the Conditions of Approval could make operation of the liquor store impossible, was grossly unfair, and violated the first amendment. He asked that Council reconsider its protest, commenting that the incidents noted in the police report were not relevant to A & M Liquor. Martha Adam, representing A & M Liquor, stated that Conditions of Approval No. 8 and 9 were unacceptable. She opined that the new owners will not be able to operate under these conditions, and addressed the matter of police calls. The Police Lieutenant reported that the Police Department is not pointing a finger at A & M Liquor, but noted a total of 22 calls for police assistance as of May, 2000. Thang Cao, 302 North Thora Street, -Orange, owner of the new C & P Liquor, addressed Condition of Approval No. 2, stating that if exterior advertising is not allowed, he will lose business. Doug Scribner, 321 Avocado Street, No. P, Costa Mesa, observed that micro -management of a business should not be a government concern. Council Member Erickson suggested amending Condition of Approval No. 2 to read, "There shall be no sign or advertising directed to the exterior from within..." directing staff to forward a letter to the ABC modifying this condition. The City Attorney indicated that he would clarify that the City is not opposing the outside business identification and street number signage.. MOTION/Received A motion was made by Council Member Erickson, seconded by And Filed Council Member Dixon, and carried 4-0, Mayor Monahan absent, to receive and file the application with the instruction to staff to forward a letter on the Mayor's letterhead modifying Condition of Approval No. 2 to allow the business name to be displayed. Council Member Somers expressed concern regarding Police Department reports and statements made by the Police Lieutenant. She noted an overabundance of liquor stores on the west side, and suggested that the property be sold for another use, such as a bookstore. Council Member Erickson supported the motion stating that the new owner will be operating under new Conditions of Approval. He clarified that voting against the. motion is a vote not to protest the ABC license, and felt that a protest' should be lodged and conditions imposed. Mayor Pro Tem Cowan supported the motion, noting the importance of reviewing how liquor stores in the City are operated, particularly on the west side. Mayor Monahan returned to the Chambers at 11:25 p.m. OLD BUSINESS The Deputy City Clerk presented a schedule for Eastside Eastside Zoning Zoning Study and Planning Division projects. The Development Study and Planning . Services Director reviewed the Agenda Report dated -May 30, Projects 2000. MOTION/Received On motion by Mayor Pro Tem Cowan, seconded by Council and Filed Member Dixon, and carried 5-0, the schedule was received and filed. NEW BUSINESS The Deputy City 'Clerk presented the Business Improvement Business Improve . Area (BIA) reauthorization: Ment Area Re - Authorization Annual report for Fiscal Year 1999-2000. Resolution declaring the intention to levy an annual assessment for Fiscal Year 2000-2001 for a Business Improvement Area covering certain Costa Mesa hotels and motels. The Assistant to the City Manager reviewed the Agenda Report dated May 24, 2000. Joe Bann, General Manager of the Doubletree Hotel, and President of the -Costa Mesa Conference and Visitor Bureau, expressed appreciation for Council's support. Mayor Pro Tem Cowan noted that the hotels had previously been asked to separate the Business Improvement Area assessment from the Transient Occupancy Tax, stating that some hotels have yet to comply. She suggested modifying the resolution to make that a requirement. Mr. Bann responded that'all hotels are now in compliance. Mayor Pro Tem Cowan asked staff to verify that fact. Doug Scribner, 321 Avocado Street, No. P, Costa Mesa, opposed the BIA, stating that the guests at the large hotels are taxed by the City and the monies are then directed back to the hotels. Council Member Somers replied that the purpose of the tax is to equal out the benefit for the smaller hotels who cannot raise rates and still maintain the occupancy levels. The City Manager clarified that if the hotels voluntarily collect the monies, they will be taxed by the State and Federal governments and lose a percentage of the proceeds. MOTION/Adopted A motion was made by Council Member Erickson, seconded by Resolution 00-45, Council Member Somers, and carried 5-0, to approve the Setting Hearing on annual report, and to adopt Resolution 00-45, A RESOLUTION July 3, 2000 OF THE CITY COUNCIL OF' THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN 1 ANNUAL ASSESSMENT FOR FISCAL YEAR 2000-2001 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND PLACE OF A PUBLIC HEARING ON THE PROPOSAL, reauthorizing boundaries for the Assessment District, approving the budget, and setting a public hearing on July 3, 2000, at 6:30 p.m., in the Council Chambers of City Hall. CITY MANAGER'S The City Manager submitted the preliminary City Budget for REPORT/Fiscal. Fiscal Year 2000-2001, stating that it is based on policy Year 2000-2001 direction from the public and Council. He stated that the Budget budget is realistic and allows the City to live within its means without increased taxes. He reported that ,the operating budget reflects a 4.3 percent increase for programs and services in the areas of public safety, recreation, and transportation; and the capital improvement budget reflects a 46.6 percent decrease primarily due to the commitment and completion of several major construction projects included in the current -year's budget. The City Manager announced that several public budget meetings will be held, and budgets are available from the City Clerk's office and at the public libraries. 1 1 COUNCIL Council Member Dixon invited the public to attend the Area 3 COMMENTS Rutgers Drive cleanup, in the 2200 block, on Saturday, June Rutgers Cleanup 17, 2000, from 8:00 a.m. to 12:00 p.m. She congratulated the Newport Aquatics Crew team, of which Council Member Somers's son is a member, who recently won the State championship and will compete in the national competition on the east coast. Fish Fry Council Member Somers added that if the team wins the national competition, they will be invited to Henley, England, to complete internationally against 25 other countries. She reported that she had attended the Fish Fry, and commented that the event was terrific. She was pleased with the Orange Coast College location. Council Member Erickson concurred with the Orange Coast College venue for the Fish Fry. Election Mayor Pro Tem Cowan reminded the public that Tuesday, June 6, 2000, is the election day to vote on the Measure A school bond. ADJOURNMENT The Mayor declared the meeting adjourned at 12:15 a.m. ttye City of Costa Mesa ATTEST: Deputy City Clerk of the City of Costa Mesa