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HomeMy WebLinkAbout11/19/2001 - City CouncilREGULAR MEETING OF THE CITY COUNCIL CITY OF COSTA MESA NOVEMBER 19, 2001 The City Council of the City of Costa Mesa, California, met in regular session November 19, 2001, at 5:30 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 Girl Scout Troop No. 1680, the Girl Scout Pledge and Law, and invocation by Pastor Mark Page, Grace Fellowship Church. ROLL CALL Council Members Present: Mayor Libby Cowan Mayor Pro Tem Linda Dixon Council Member Gary Monahan Council Member Karen Robinson Council Member Chris Steel Council Members Absent: None Officials Present: City Manager Allan Roeder City Attorney Jerry Scheer Development Services Director Donald Lamm Public Services Director William Morris Planning and Redevelopment Manager Mike Robinson - Senior Planner Kim Brandt Associate Planner Mel Lee Recreation Manager Stacia Mancini Deputy City Clerk Mary Elliott MINUTES On motion by Council Member Monahan, seconded by Mayor October 8, 2001, and Cowan, and carried 5-0, the minutes of the special meeting of November 5, 2001 October 8, 2001, and regular meeting of November 5, 2001, were approved as distributed. ORDINANCES AND A motion was made by Council Member Monahan, seconded by RESOLUTIONS Mayor Pro Tem Dixon, and carried 5-0, to read all ordinances and resolutions by title only. ANNOUNCEMENT Mayor Cowan announced that presentation of the Mayor's Award to Lindsay Freeman, Estancia High School, would be trailed until approximately 6:30 p.m., or at an appropriate break in the meeting. PUBLIC COMMENTS Martin Millard, 2973 Harbor Boulevard, No. 264, Costa Mesa, Paularino Avenue reported that a problem exists in the Mesa North area, specifically Trash Problem on Paularino Avenue, wherein the area across the street from Paularino School is covered with trash from produce trucks. Mayor Cowan asked the Public Services Director to investigate this situation. South Coast Plaza Robert Graham, 3260 Dakota Avenue, Costa Mesa, commented on the convenience of having South Coast Plaza as the City's local shopping center. CONSENT The following item was removed from the Consent Calendar: - Item CALENDAR No. 10, Agreement with RJM Design Group, Inc., for a General Plan Amendment/Update ons the Recreation Master Plan Component for the TeWinkle Park Specific Master Plan. MOTION/Approved On motion by Council Member Monahan, seconded by Mayor Pro Except Item No. 10 Tem Dixon, and carried 5-0, theremaining Consent Calendar items were approved as recommended. READING FOLDER The following Reading Folder items were received and processed: Claims Claims received by the Deputy City Clerk: Carla Collyson; and Jacqueline Stanzak. Alcoholic Beverage Alcoholic Beverage Control (ABC) License requests: License Requests Wahoo's Fish Taco, 3333 Bear Street, Suite 211, for an original Type 41 ABC license (on-sa'le beer and wine for a bona fide eating place). San Sivar Restaurant, 1940 Harbor Boulevard, for an original Type 41 ABC license (on -sale beer and wine for a bona fide eating place). Chipolte Mexican Grill, 2300 ;Harbor Boulevard, Suite L1, for a premise -to -premise transfer of a Type 47 ABC license (on -sale general for a bona fide eating ;place). Cheers Liquor, 1525 Mesa Verde Drive East, Suite 127, for a person-to-person transfer of ;a Type 21 ABC license (off -sale general). WARRANTS The following warrants were approved: Approved Warrant Warrant Resolution 1874, funding City operating expenses for 1874 $379,590.54. Approved Warrant Warrant Resolution 1875, funding Payroll 123 for $1,802,110.08, 1875/Payroll 123 and City operating expenses for $1,279,982.54, including payroll deductions. REJECTED CLAIMS Kaspar Mitchell/Nguyen Maae (and 42 Other Individuals) ADMINISTRATIVE ACTIONS/Approved Agreement with Praedium for Design of JoAnn Street and Center Street Alley The following claims were rejected: Claim from Elaine Kaspar (alleging that the City failed to protect). Claims from George Mitchell, Jazlyn Mitchell, and Mai Linh Nguyen (alleging negligence of a City employee/agent). Claims from Lorena Maae and 42 other individuals (alleging violation of civil rights). An agreement was approved 'with Praedium, Inc., 2030 Main Street, Suite 1300, Irvine, for $77,025.00, for design of JoAnn Street from Placentia Avenue to Miner Street and a portion of the Center Street Alley (Alley No. 1), located between Center Street and 19th Street from Monrovia Avenue to approximately 500 feet east, and the Mayor and Deputy; City Clerk were authorized to sign on behalf of the City. 1 Authorized Staff to Staff was authorized to negotiate a contract with a qualified glazing Negotiate Contract contractor for Application of Earthquake Safety Film on Windows at for Application of Various Locations, Project No. 01-12, for an amount not to exceed Safety Film, Project $21,800.00, and the City Manager was authorized to execute the No. 01-12 agreement. Awarded Design and Bids for Design and Construction of a Concrete Patio and Seat Construction of Patio Wall at the Costa Mesa Senior Center, 695 West 19th Street, Seat and Wall, Project Project No. 01-13, are on file in the City Clerk's office. The No. 01-13, to S. contract was awarded to S. Parker Engineering, Inc., 10059 Parker Engineering Whippoorwill Avenue, Fountain Valley, for $16,975.00 (Base Bid plus Alternate Bid Nos. 1 and 2), and the Mayor and Deputy City Clerk were authorized to sign on behalf of the City. Approved Agreement An agreement was approved with Municipal Services Bureau with MSB/Data Ticket (MSB/Data Ticket), 4600 Campus Drive, Suite 200, Newport for Parking Citation Beach, for approximately $12,440.00 per year, for data processing Administration and collection of fines and administration of reviews and hearings for parking citations, and the Mayor and Deputy City Clerk were authorized to sign on behalf of the City. Approved Agreement An agreement was approved with the Newport Bay Watershed with Newport Bay Stakeholders for cost sharing of the Newport Bay Watershed Watershed Stake- Human Health Risk Assessment, and the Mayor and Deputy City holders for Study Clerk were authorized to sign on behalf of the City. Approved Agreement A three-year lease and support agreement was approved with with Hewlett Packard Hewlett Packard, 1421 South Manhattan Avenue, Fullerton, for an for Lease and Support annual amount of $92,265.72, and the Mayor and Deputy City of Equipment Clerk were authorized to sign on behalf of the City. Approved Amend- Amendment No. 1 was approved to the agreement between ment No. 1 to the BonTerra Consulting, 151 Kalmus Drive, Suite E-200, Costa Mesa, Agreement Between C. J. Segerstrom and Sons, 3315 Fairview Road, Costa Mesa, and BonTerra/Segerstrom/ the City, for $114,923.58 (to be borne by Segerstrom), for Home City for Home Ranch Ranch Environmental Impact Report No. 1048, and the Mayor and EIR No. 1048 Deputy City Clerk were authorized to sign on behalf of'the City. Rejected All Bids for All bids were rejected for Construction of Landscape Construction of Land- Demonstration Projects on Baker Street, North Parkway from scape Demonstration Coolidge Avenue to Babb Street; and Gisler Avenue, North Projects on Baker Parkway from the Wicks Furniture Driveway to College Avenue, Street, Project No. Project No. 01-08, and staff was authorized to readvertise the 01-08 project. Received and Filed The Development Phasing and Performance Monitoring Report Monitoring Report was received and filed. Agreement with RJM Item No. 10 on the Consent Calendar was presented: Agreement Design Group for with RJM Design Group, Inc., 31591 Camino Capistrano, San Juan GPA/Update on Re- Capistrano, for $165,861.00, for a General Plan creation Master Plan Amendment/Update on the Recreation Master Plan Component for Component the TeWinkle Park Specific Master Plan. The City Manager asked that this item be postponed for two weeks. On motion by Council MOTION/Continued Member Monahan, seconded by Mayor Pro Tem Dixon, and to December 3, 2001 carried 5-0, this item was continued to the meeting of December 3, 2001. PUBLIC HEARING The Deputy City Clerk announced the public hearing, continued Segerstrom Home from the special meeting of November 13, 2001, to consider the Ranch Segerstrom Home Ranch, a 93 -acre site currently used for agricultural purposes with a limited number of buildings, and M bordered by Sunflower Avenue, the San Diego Freeway (1-405), Fairview Road, and Harbor Boulevard: Final Environmental Impact Report No. 1048. General Plan Amendment ;GP -00-05, to amend the 1990 General Plan by changing; the land use designation from Industrial Park and;Medium Density Residential to High Density Residential, Industrial Park, and Commercial Center; establishing a site-specific floor area ratio of 0.41 for Commercial Center; establishing a site-specific density of 29 dwelling units per acre for High Density Residential; to increase the trip budget; to increase the maximum building area (961,060 square feet of industrial uses and 366 dwelling units allowed; 791,050 square feet of office and office -related uses, 252,648 square feet of industrial uses, 308,000 square feet of retail uses (IKEA), and 464 dwelling units proposed); to amend the Master Plan of bikeways to delete the proposed grade -separated bike trail under -crossing of the 1-405 ;and related links between Gisler Avenue and South Coast Drive. Specific Plan Amendment SP -00-02, to amend the North Costa Mesa Specific Plan text and figures to increase the size of Area 1 (Home Ranch) to include the 30.5 acres located north of South Coast Drive; modify Area 1's land use designations, trip budget, maximum allowable, floor area ratio and building square footage, and development standards. Rezone Petition R-00-02, to rezone 93.34 acres from Planned Development Industrial (PDI) and Planned Development Residential -Medium Density (PDR -MD) to Planned Development Industrial (PDI), Planned Development Commercial (PDC), and Planned Development Residential -North Costa Mesa (PDR - NCM). Master Plan PA-99-34/Minor iConditional Use Permit ZA-01-36, for a final master plan to allow the construction of a 308,000 sq. - ft. retail, 45 -foot tall building (IKEA) located at the southeast corner of Harbor Boulevard and South Coast Drive, with a minor conditional use permit to allow compact parking spaces. Development Agreement DA -00-01, to establish a development agreement for the Segerstrom' Home Ranch project. Communications were received in support of Home Ranch from Rita and Len Bekemeyer (via e-mail), Mesa Verde; Janet Huang, 1105 Debra Drive, Costa Mesa; !Marilyn J. Iturri, 1087 Sea Terrace Lane, Costa Mesa; Marie C. Schlutz, no address given; Tom and Barbara Schworer, 1816 Kinglet Court, Costa Mesa; and William G. Susman, 3035 Country Club Drive, Costa Mesa. Communications were received, in opposition to the project from Halecrest Hall of Fame Homeowners Association, 3141 Limerick Lane, Costa Mesa; Ruth Biel, no street address, Costa Mesa; Jo Ann Carroll, 3205 Dakota Avenue, Costa Mesa; two from Martin Millard, 2973 Harbor Boulevard, No. 264, Costa Mesa; Jim Atkinson, no street address, Costa Mesa, opposed a 20 -year Development Agreement; and !Michael Wall, Counsel for SEIU Local 1877, opposed the environmental impact report. A communication was received from Kristen Caspers Petros, 2135 Iris Place, Costa Mesa, Vice Chairperson of the Historic Preservation Committee, reporting that the Committee enthusiastically supports the C. J. Segerstrom and Sons plan to preserve and maintain the historic buildings on the Home Ranch site. The Planning and Redevelopment Manager reviewed the Agenda Reports dated November 14, 2001, and he and the Senior Planner responded to questions from Council. Council Member Robinson expressed concern regarding a company called Emulex who expressed interest in relocating to the Home Ranch property. She observed that the impacts of such a move should be addressed prior to approval of the environmental impact report. Paul Freeman, representing C. J. Segerstrom and Sons, 3315 Fairview Road, Costa Mesa, presented an overview of the project, noting that housing was integrated into the project where good land use planning supported that addition. He commented that the master plan amendment for Emulex will illustrate that the average daily trip budget, floor area ratio, and height limit, will be well within the parameters which have already been analyzed. He addressed the aesthetics of the project, showing a preliminary Emulex site plan as an example, as well as renderings of the proposed homes and the IKEA store, and discussed public benefits as found in the Development Agreement. Mr. Freeman put forth additional public benefits that C. J. Segerstrom and Sons has agreed to provide: public art, subject to City approval; a provision by IKEA to provide daycare for their employee's children; and relocation of the Huscroft House. He reported that support for the project had been received throughout the City. Mayor Pro Tem Dixon asked the feasibility of a 10- or 15 -year development agreement, instead of 20 years. She asked the manner by which the Huscroft House had been added to the equation. Council Member Steel replied that he had requested addition of the Huscroft House, indicating that C. J. Segerstrom and Sons would finance transfer and maintenance of the home. Mr. Freeman indicated to Mayor Pro Tem Dixon that they would be willing to limit the term of the development agreement to 15 years. The following persons opposed the Home Ranch project: Gordon Pate, 2973 Ceylon Drive, Costa Mesa, commented on the architect employed by C. J. Segerstrom and Sons; Robin Leffler, 3025 Samoa Place, Costa Mesa, Vice President of Costa Mesa Citizens for Responsible Growth, presented a petition signed by 1,575 Costa Mesa citizens and approximately 23 supporters from neighboring cities, asking Council to protect the quality of life by honoring the current General Plan; Jay Humphrey, 1620 Sandalwood Street, Costa Mesa, addressed the jobs/housing balance, and indicated that he is in possession of a list of 1,943 persons who oppose the Home Ranch project; Jim Atkinson, 2871 Alanzo Lane, Costa Mesa, believed that future Councils may be subject to unreasonable fiscal constraints by approval of the development agreement; Sandra Genis, 1586 Myrtlewood Street, Costa Mesa, addressed the jobs/housing ratio, stating that approving the project will affect the balance, future traffic congestion, and noted that the resolution to approve the project is over 100 pages; Joey Racano, 704 Ocean Hill Avenue, Huntington Beach, stated that his main concern relates to increased density and waste generated, which could include heavy metal from industrial uses; Jerry Arnett, 1781 Iowa Street, Costa Mesa, cited traffic impact, and opposed a bridge at Gisler Street; Cindy Brenneman, 1856 Elba Circle, Costa Mesa, President of Mesa EMP Verde Community, Inc., and secretary of Costa Mesa Citizens for Responsible Growth (CMCRG)', corrected erroneous information reported in the Daily Pilot, and commented that CMCRG is a group of concerned Costa Mesa residents from throughout the City whose only agenda is to ensure that the Home Ranch project is in the best interest of all the residents; Phyllis Atkinson, 2871 Alanzo Lane, Costa Mesa, circulated a petition which indicated that only one person in ten is in,favor of the Home Ranch project, and stated that traffic analysis for the environmental impact report assumes completion of the Gisler Street bridge across the Santa Ana River; Janet Remington, 1154 Boise Way, Costa Mesa, addressed related comments which were previously made; John Feeney, 1154 Dorset Lane, Costa Mesa; asked Council to eliminate slums and not exacerbate the situation by approving the Home Ranch project; Martin Millard, 2973 Harbor Boulevard, No. 264, Costa Mesa, agreed with Council Member Robinson that tenants should be determined prior to approval, . objected to the 20 -year development agreement, and thought that 190 more homes should be added to the project; Allan Mansoor, 2973 Harbor Boulevard, No. 406, Costa Mesa, believed that traffic will be impacted, noting that it is a "quality of life" issue; Gene Hutchins, 1808 Kinglet Court, Costa Mesa, felt that the residential areas along the south side of the 1-405 freeway will -be put at risk; and Paul Flanagan, 3090 Bali Circle, Costa Mesa, commented,on potential air quality problems. The following persons supported the project: Darnell Wyrick, 1806 Hummingbird Drive, Costa Mesa, believed that everything presented by C. J. Segerstrom and Sons would prove to be of great benefit to the City; Robert Graham, 3260 Dakota Avenue, Costa Mesa, read a letter from his wife which called Home Ranch, "an excellent use of the property", and enumerated successful projects completed by'C. J. Segerstrom and Sons; and Del Heintz, 1151 Aviemore Terrace, Costa Mesa, representing Costa Mesa United, encouraged Council to 'decide in favor of the project this evening. Tom Egan, 1893 Parkview Circle, Costa Mesa, commented on his understanding of the traffic situation, stating that the traffic which will be generated by. the Home Ranch project is less than one percent above that designated in the General Plan, which is a miniscule increase. Jim Wright, 3490 Wimbledon Way, Costa Mesa, President of the Board for the Homeowners Association, observed that the residents in his neighborhood opposed to the project seem to be the ones who are residents for the long term, and thought that traffic issues should be mitigated prior to project approval. Mike Garcia, President of SIEU Local No. 18, representing service employees who reside, and work throughout Orange County, addressed increases in traffic and air pollution, and the jobs/housing imbalance. He believed that the problems outweigh the potential benefits, and directly affect the "working poor' in Costa Mesa. Sandy Gregor, 3261 Indiana Avenue, Costa Mesa, objected to the potential traffic escalation, stating that she is not opposed to the project but is concerned about what it will do to the community. She felt that proposed tenants should be identified prior to approval. 1 1 Paul Freeman, representing C. J. Segerstrom and Sons, mentioned two additional features of the IKEA Master Plan Amendment, one is the provision of showers and lockers at the facility, and another is the elimination of all compact parking spaces. He rebutted previous comments by stating that the project does not trigger a need for the Gisler Street bridge, and the current project has less industrial than allowed by the existing General Plan. He commented that they have tried to be sensitive to the community, and the project reflects the spirit that has been brought to the process and the diligent earnestness put forth by C. J. Segerstrom and by the Planning Commission. There being no other speakers, the Mayor closed the public hearing. Council Member Steel complimented staff and the C. J. Segerstrom and Sons representatives on the work they have accomplished. He asked several questions of Mr. Freeman, and noted his objections to the Development Agreement, specifically the monies being directed to the Newport -Mesa Unified School District. He suggested that the $2 million be removed from the Development Agreement and be directed to the schools as a separate action. Mr. Freeman indicated that the $2 million is one provision of an agreement which has many extraordinary benefits, and stated that the money would be given, with or without the agreement. He noted that C. J. Segerstrom and Sons is on record as opposing a bridge on Gisler Street. Council Member Steel proposed that the Segerstroms aid the City in redevelopment efforts, and Mr. Freeman replied that they would be willing to participate in a creative planning process. Mr. Freeman added that as a result of this project, the City's discretionary income will be increased appreciably. MOTION/To Deny A motion was made by Council Member Robinson, seconded by Certification Council Member Steel, to deny certification of EIR No. 1048. Council Member Robinson reported that the purpose of an EIR is to examine all of the potential effects of a project, and the specifics of the impact of accepting Emulex as a tenant on the Home Ranch property has not been determined. She stated that the certification of an EIR without the required information could be decertified in a court of law. She commented that the public had not been provided with the information regarding the impact of Emulex, such as the increase in traffic, pollutants, emissions, etc. Council Member Robinson stated that an EIR is the method by which full disclosure is made, and believed that it would be irresponsible to certify the EIR when the information pertaining to a specific project, or corporation, or tenant, which will be part of the project is unavailable. She stated that the jobs/housing issue should be addressed, as well as traffic mitigation, weekend traffic, urban runoff, and mitigation of the pollutants. SUBSTITUTE A substitute motion was made by Council Member Monahan, MOTION/Adopted seconded by Mayor Cowan, and carried 4-1, Council Member Resolution 01-78 Robinson voting no, to adopt Resolution 01-78, A RESOLUTION Certifying EIR No. OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, 1048 CALIFORNIA, CERTIFYING FINAL IMPACT REPORT NO. 1048 FOR THE SEGERSTROM HOME RANCH PROJECT, inserting prior to the last paragraph, "WHEREAS, the record of the City Council proceedings is located in the City of Costa Mesa, City Clerk's office, 77 Fair Drive, Costa Mesa, and the Deputy City Clerk of the City of Costa Mesa is the custodian of the record of the City Council proceedings." 145 Regarding the tenancy of Emulex, Council Member Monahan stated that the EIR contains information relating to a typical occupant of this site, and a Master Plan Amendment regarding the Emulex specifics will be reviewed by Council. He complimented staff and the Planning Commission and their chairwoman, Katrina Foley, for their hours of study of -the EIR. Mayor Cowan supported the substitute motion, stating that staff and the contractor have done an excellent job in preparing this program EIR which addresses all the concerns and questions raised. Mayor Pro Tem Dixon supported the substitute motion, concurring with the above comments. Council Member Steel supported the motion, hoping that the traffic concerns did not come to fruition. MOTION/Adopted A motion was made by Mayor Cowan, seconded by Council Resolution 01-79, Member Monahan, and carried 4-1, Council Member Robinson Adopting GP -00-05 voting no, to adopt Resolution .01-79, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING GENERAL PLAN AMENDMENT GP -00-05 TO CHANGE THE LAND USE DESIGNATION FROM MEDIUM DENSITY RESIDENTIAL TO ° INDUSTRIAL PARK ON 14.5 ACRES AND FROM INDUSTRIAL PARK TO COMMERCIAL CENTER ON 62.84 ACRES FOR SEGERSTROM HOME RANCH AND OTHER RELATED AMENDMENTS AND TO DELETE THE PROPOSED GRADE -SEPARATED BIKE TRAIL UNDERCROSSING OF THE 1-405 FROM THE MASTER PLAN OF BIKEWAYS, adding the "Statement of Overriding Considerations in Support of Findings for Significant Environmental Effects of the Home Ranch Alternative A Project", as the last exhibit to the resolution. The Planning and Redevelopment Manager reported that the Statement of Overriding Considerations, added above, was attached to the resolution adopted by the Planning Commission and is contained in the Project Background Report on Pages 2-117 through 2-119. Council Member Monahan expressed interest in increasing the units per acre in the Medium Density Residential designation. Mayor Cowan commented that: densities in the area have been identified as being an average -of 12 per acre. Council Member Steel supported the motion, expressing a desire to have senior, or affordable, housing added to the project. Mayor Pro Tem Dixon thanked staff, the Planning Commission, and members of the community who spent countless hours to assist her with understanding of the project. She concluded that Home Ranch is a quality project which will be good for all of. Costa Mesa, and a responsible project in which the negative aspects are mitigated. Mayor Pro Tem Dixon asked that Council consider at an upcoming study session the possibility of directing one percent of the City's budget to projects within the City that would help restore a suburban feel in the character of the City, such as pedestrian friendly walks, installing traffic, circles, reducing odor and litter, acquiring electric vehicles for staff, etc. Council Member Robinson stated that when she ran for office, her platform had been, "I will protect the quality of life in Costa Mesa to the best that I can." She indicated that it included reducing the overcrowding of City streets and pollution, believing that the IKEA store is the part of the Home Ranch project which is objectionable. Council Member Robinson suggested that IKEA could be located in another city which is in need of the financial benefits, and believed that a majority of Costa Mesa residents are opposed to the project. Mayor Cowan 147 supported the motion, stating that the General Plan is a blueprint for the future and is subject to change. She reported that the Plan has been amended 33 times since 1990, and expressed approval of this change since the approach to the project is more logical. The Mayor stated that IKEA is a proven retail business with a solid customer base, is a responsible corporate citizen, and has agreed to the conditions of approval to be energy conscious. Council Member Monahan observed that IKEA will be one of the greatest benefits of the Home Ranch project. He felt that the millions of dollars generated by IKEA will improve the quality of life of the citizens of Costa Mesa by improving streets, emergency services, and recreation. MOTION/Adopted A motion was made by Council Member Monahan, seconded by Resolution 01-80 Mayor Pro Tem Dixon, and carried 4-1, Council Member Robinson Adopting SP -00-01 voting no, to adopt Resolution 01-80, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING NORTH COSTA MESA SPECIFIC PLAN AMENDMENT SP -00-02 FOR SEGERSTROM HOME RANCH. MOTION/Gave First A motion was made by Council Member Monahan, seconded by Reading to Ordinance Mayor Cowan, and carried 4-1, Council Member Robinson voting 01-28 no, to give first reading to Ordinance 01-28, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, REZONING 77.34 ACRES OF SEGERSTROM HOME RANCH FROM PDR -MD TO PD1 (14.5 ACRES) AND FROM PDI TO PDC (62.84 ACRES) BY ADOPTION OF REZONE PETITION R-00-02. Second reading and adoption are scheduled for the meeting of December 3, 2001. MOTION/Adopted A motion was made by Mayor Cowan, seconded by Mayor Pro Res. 01-81 Approving Tem Dixon, and carried 4-1, Council Member Robinson voting no, PA-99-34/ZA-01-36 to adopt Resolution 01-81, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING MASTER PLAN PA -99-34 AND MINOR CONDITIONAL USE PERMIT ZA-01-36, subject to conditions, and adding Condition of Approval No. 17, IKEA shall, within three years of issuance of its Certificate of Occupancy, provide to its employees a child care program, subject to approval by the City; Condition of Approval No. 18, IKEA shall, within six months of issuance of its Certificate of Occupancy, provide public art onsite valued at $350,000.00, subject to approval by the City; Condition of Approval No. 19, IKEA shall, upon completion of all flood control work, eliminate any compact parking spaces within its parking lot; and a condition which provides for. lockers and showers for employees who wish to ride their bicycle to work. Attorney Tom Nixon, Woodruff, Spradlin, and Smart, 701 South Parker Street, Suite 8000, Orange, provided modifications to language in the Development Agreement which reflect continuing negotiations which have occurred: Section 1.1(b), the definition of building permit has been added, a permit issued by the City for the construction of a building within the project but specifically excluding permits for grading, surcharging on the installation of subsurface utilities, or related facilities; Section 2.2.10, Traffic Impact Fees, adding "the City and owner agree that at the time future discretionary master plan permits are submitted for the construction of improvements within the project, the City shall perform additional traffic studies as required by the California Environmental Quality Act (CEQA) to determine if there will be traffic impacts not anticipated in the EIR. If such studies demonstrate new significant traffic impacts, they shall be mitigated in a manner consistent with CEQK; Section 3.2 relating to the duration of the Development Agreement, changing the years from 20 to 15; Section 3.7, requiring the applicant to provide defense for the City should litigation occur, the applicant agreeing to pay defense costs in attorneys fees up to $350,000.00; deleting Section 3.29, regarding financial assistance; and Exhibit F, Paragraph A, regarding future unanticipated rights-of-way, deleting the reference to the requirement of successors in interest to the Segerstroms, and the price at which the land would be provided, adding "the owner agrees that the fair market value of any such right-of-way shall be the lesser of the fair market value on the effective date adjusted by the consumer price index for all urban consumers for the Los Angeles metropolitan area, base year 1982/84 equals 100 but not exceeding four percent annually."; Exhibit F, Paragraph 'B, conveyance of property adjacent to the historic site, 1.5 acres would be dedicated to the City after an eight-year period if the transaction with Mesa, Consolidated Water District does not go through; Exhibit F, Paragraph E, residential component, insert "12 units per acre will be an average density"; and Exhibit F, Paragraph F,, payment of $500,000.00 for construction of the fire station will be made no later than ten days prior to the date the City issues construction documents initiating the bidding process for the fire facility. Mr. Nixon added to Exhibit F, "Within 90 days of the issuance of the first building permit for the project, owner shall contribute a;total of $200,000.00 to the City, to help fund the transport of the - Huscroft House to a permanent location and provide for its restoration." Motion to Remove A motion was made by Council Member Steel to ask C.J. Monies from Develop- Segerstrom and Company to remove the $2 million gift to the ment Agreement Died Newport -Mesa Unified School: District from the Development Agreement, and give the monies to the schools as a separate action. The motion died for lack -of a second. MOTION/Gave First A motion was made by Council Member Monahan, seconded by Reading to Ordinance Mayor Pro Tem Dixon, and carried 3-2, Council Members 01-29 Approving Robinson and Steel voting no, to give first reading to Ordinance DA -00-01 01-29, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT NO. DA -00-01 FOR THE HOME RANCH PROJECT, including the additional changes presented above by Attorney Tom Nixon. Second reading and adoption are scheduled for the meeting of December 3, 2001. Council Member Monahan commented that the development agreement benefits the developer and the City, stressing that there are negotiations to the advantage of both sides. Council Member Steel stated that by suggesting that the donation to the schools be removed from the development agreement, he intended to remove any potential controversy. Mayor Pro Tem Dixon supported the motion. Mayor Cowan supported the motion, stating that approving the development agreement is the most prudent action for Council to take. Council Member Monahan believed that the project will be of high quality. He thanked opponents: to the project for their input, and commended their decorum. Mayor Cowan opined that the project is a good one, the EIR is sound, and the requests by the developer are reasonable. Council Member Robinson commended members of both sides of the debate, believing that the opposition helped to form a good project, albeit one that is not necessarily good for Costa Mesa. Council Member Steel asked that the residents be patient. RECESS The Mayor declared a recess at 9:00 p.m., and reconvened the meeting at 9:10 p.m. PRESENTATION Mayor Cowan presented the fall quarter Mayor's Award to Lindsay Mayor's Award Freeman, Estancia High School Junior, in recognition of her many leadership activities over the years, after-school mentoring efforts, and for volunteering in the community. She commended Ms. Freeman for participating in the City's Advisory Committee of Teens (ACT), and for being president of Estancia's Key Club. PUBLIC HEARING The Deputy City Clerk presented the public hearing, continued R-01-04, Howser/ from the meeting of November 5, 2001, to consider Rezone Schrock; and PA -01- Petition R-01-04, for Fritz Howser and Michael Schrock, authorized 26 agents for Phil Wade, to rezone property at 257 Cecil Place from R1 to PDR -LD; and Planning Application PA -01-26, for a planned development to allow construction of two additional two-story, single-family swellings behind an existing single-family dwelling at the above address. Environmental Determination: Exempt. A communication in favor of the project was received from the law firm of Andrade and Associates, Jeffrey Corporate Centre, 5510 Trabuco Road, Irvine, representing the applicant. Communications opposed to the project were received from Mary Abrams, 340 Alva Lane, Costa Mesa; Frank Bloomfield, 2134 Aster Place, Costa Mesa; Francene Kaplan, 254 Cecil Place, Costa Mesa; Carl and Marcia Lachman, 262 Cecil Place, Costa Mesa; Cynthia R. Maher, Maher & Maher, Attorneys at Law, 505 South Main Street, No. 800, Orange; Edward Matlin, 2986 Tustin Avenue, Costa Mesa; Karen Patterson, 226 Sherwood Place, Costa Mesa; and Kathryn and Keith Williams, Esther Street, Costa Mesa. Council Member Monahan indicated his intention to abstain from the vote due to a conflict of interest. The Associate Planner reviewed the Agenda Report dated November 6, 2001, and he and the Planning and Redevelopment Manager responded to questions from Council. Jennifer Friend, 5510 Trabuco Road, Irvine, representing the applicants, noted that a letter supporting the project was presented to her by Jim Montemayor, 246 and 250 Cecil Place, properties located directly across the street from the proposed site. She reported that Planning staff had referred to this project as high quality and low density in their report dated August 27, 2001, and Council has previously concurred. She indicated that because of the nature and makeup of this property, including its unique, large size, the developer has provided a proposal which exceeds all of the requirements with respect to setbacks, open space, and close proximity to the neighboring residences in the area. Ms. Friend related that Planning staff believed that the project meets or exceeds all applicable standards for development in the proposed zone, and addressed other aspects of the project, stating that problems had been mitigated to the satisfaction of City staff. Council Member Steel doubted that the proposed two stories were compatible with the neighborhood. He reported a conversation with Mr. Howser wherein Council Member Steel had recommended that the house be modified to one story, a reduction to one house, and an adequate setback in the rear be included to eliminate intrusion onto the Virginia Street residences. Ms. Friend replied that there are numerous two-story homes in the immediate vicinity, and mentioned that significant accommodations had been made for the immediate neighbors. The following Costa Mesa residents opposed the project: Timothy Fitzwater, 275 Cecil Place, cited potential problems that may be encountered by the Costa Mesa Fire Department, major loss of privacy, increased traffic, and reduction of available curb side parking; Mark Ruiz, :251 Virginia ;Place, stated that he had gathered signatures of 200 neighbors who oppose the project; Bettelee Doughty, 252 Virginia Place, complained that placement of the homes impacted the entire neighborhood; the resident at 2236 Jeannette Place; Rich Brown, 228 Cecil Place, discussed flag lots, stating that they are the least desirable in a neighborhood; Mavis Crawford, 203 Cecil . Place; Harrison Brown 228 Cecil Place, pointed out the potential impact on neighboring homes; Chris Ohlhaver, 240 Virginia Place, opposed the zoning change, and commented on the privacy issue; Elizabeth McGrail, 266 Virginia Place; Polly Hendricks, 2239 Catherine Place, addressed the map attached to the petition signed ; by those opposed to the project; Wayne Kastner, 2240'Jeanette Place, took issue with facts stated in the Agenda Report that this project would not set a precedent, and objected to dividing the lot' into three R1, 6,000 square foot lots; Michele Herring, 258 Virginia Place, felt that the developer was making a profit at her expense; Russell O'Hare, 265 Cecil Place, did not understand how the project would beautify the neighborhood since the homes cannot be seen from the street; the resident at 2238 Catherine Place; Jo Hendricks, 2239 Catherine Place, commented that the only issue under consideration is zoning; Mike Johnson, 288 Virginia Place; and Heather Somers, 313 Robin Hood Lane, thought ;that high density on the east side will ruin the community, and she objected to spot zoning. The following Costa Mesa residents supported the project: Jeff Robinson, 365 Ramona Way, thought that the application would enhance the look of the neighborhood; John (last name unintelligible), 241 Knox Place, believed that east side Costa Mesa is desperately in need of this quality project; the resident at 215 22nd Street, felt that the project would add to the value of the adjacent properties; John Somers, 243 Albert Place, supported the project, and indicated that the neighborhood. needs repair; Scott Pfeiffer, 237 Robin Hood Place, supported development of the area; the owner/resident at 250 Cecil Place, stated that the new owners have improved and enhanced the value of the neighborhood; Elizabeth McNulty, no address given, presented a photograph of the' improvements; Bob Birmingham, 346 Vista Baya, commented that this is .a nice project which meets and exceeds current development 'standards; the resident at 299 Broadway; Bart McNulty, 2675, Redlands Drive; a Costa Mesa resident, stated that the project will enhance the area; Jeff Martin, 589 Park Drive; Russell McCardle, 243 Robin Hood Place, observed that the project will upgrade the neighborhood; and an east side owner/resident. Mark Davidson, 266 Cecil Place;, Costa Mesa, noted that only the landscaping will be seen from the street, and thought that some areas should be preserved. Jennifer Friend, representing the applicants, addressed questions from residents by stating that ;they objected to a high density proposal, which is not relevant; to the project being considered. There being no other speakers, the Mayor closed the public hearing. 1 1 1 MOTION/Adopted A motion was made by Mayor Pro Tem Dixon, seconded by Resolution 01-82 Council Member Steel, and carried 4-0, Council Member Monahan absent, to adopt Resolution 01-82, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DENYING PLANNING APPLICATION PA -01-26 AND REZONE PETITION R-01-04, with the finding that it is inappropriate within the R1 neighborhood, the development plan does not comply with R1 development standards for the rear setback of Lot No. 1, and the incompatibility of two-story homes on Lot Nos. 2 and 3. Mayor Pro Tem Dixon believed that the project is poorly designed, out of character with the neighborhood, and rezoning of this type does set a precedent. She felt that the neighborhood should remain zoned R1, and the project is not compatible nor harmonious to the surrounding property. Council Member Robinson was disappointed that the applicant did not change the project, taking into consideration the comments of the neighbors and addressing the compatibility issue. She agreed that the project is not compatible with the surrounding homes, and supported the motion. Mayor Cowan supported the motion, agreeing with Council Member Robinson that none of Council's suggestions had been addressed. RECESS The Mayor declared a recess at 10:55 p.m., and reconvened the meeting at 11:05 p.m. PUBLIC HEARING The Deputy City Clerk announced that this is the time and place DR -01-22, Johnson set for the public hearing to consider an application from Gary Johnson, appealing certain conditions of approval imposed by the Planning Commission for Development Review DR -01-22, to legalize the conversion of the first floor of an existing two-story accessory structure to a granny unit, originally approved as a first floor recreation room and a second floor accessory apartment, located at 268 Flower Street in an R1 zone. Environmental Determination: Exempt. The Associate Planner summarized the Agenda Report dated November 6, 2001. Gary Johnson, 23052 Alicia Parkway, Mission Viejo, submitted correspondence from two neighbors of the property, expressing approval of the granny unit. He reviewed the history of the project, stating that he is asking that the kitchen be legitimized and for approval to retain the second unit. He responded to questions from Council. Sandra Genis, 1586 Myrtlewood Street, Costa Mesa, commented on the State law which allows for an additional unit, such as a granny unit, on a lot which is limited to a single-family home. She expanded on that concept by stating that did not cover another additional unit, such as Mr. Johnson's illegal first floor unit. Mr. Johnson rebutted that this would disregard previous zoning, approvals, and grandfathering. There being no other speakers, the Mayor closed the public hearing. MOTION/To Approve A motion was made by Council Member Steel, seconded by Mayor Kitchen/Granny Unit Cowan, to adopt a resolution reversing the Planning Commission's decision by grandfathering the kitchen, approving the third unit as a "granny unit". The Development Services Director clarified for the record that the property currently has a deed restriction which prohibits a third dwelling unit. Mayor Pro Tem Dixon observed that the Agenda Report clearly states that in 1960, the multiple -family development was rezoned R1, and the third unit is not allowed. SUBSTITUTE A substitute motion was made by Mayor Pro Tem Dixon, seconded MOTION/Adopted by Council Member Robinson, and carried 3-2, Council Members Resolution 01-83 Monahan and Steel voting no, to uphold the Planning Commission's decision by adopting Resolution 01-83: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING DEVELOPMENT REVIEW DR -01-22, subject, to conditions imposed by the Planning Commission. Council Member Monahan opposed the substitute motion, asking if the deed restriction could be removed. The City Attorney replied in the affirmative. Mayor Cowan; supported the substitute motion, commenting that the intent had been clear as to restrictions on the property, and the applicant understood the rules yet proceeded with installing the kitchen. MOTION/Continued On motion by Council Member Monahan, seconded by Council Appeal of PA -00-37, Member Robinson, and carried: 5-0, the following public hearing The Regents Group, was continued to the meeting of January 7, 2002: to January 7, 2002 Application from Council Member Robinson appealing the Planning Commission's approval of Planning Application PA - 00 -37, for The Regents Group, 420 McKinley Street, Suite 111, Corona, authorized agent for Russell Garner, South Coast R. E. Investments, 303 Broadway,: Suite 210, Laguna Beach, for a variance from parking requirements (24 spaces required, 16 proposed), and to allow 3 compact parking spaces; and a minor modification to allow a trash enclosure to encroach 1 foot, 3 inches into the required 20=foot front setback, in conjunction with the conversion of residential dwelling units to commercial uses at 248 Victoria Street, in a C2 zone. Environmental Determination: Exempt. MOTION/Continued On motion by Council Member Monahan, seconded by Mayor Pro Appeal of PA -01-19, Tem Dixon, and carried 5-0, the following public hearing was Corzine, to December continued to the meeting of December 3, 2001: 3, 2001 Application from Council Member Robinson appealing the Planning Commission's approval of Planning Application PA -01- 19 for Bruce H. Corzine, property owner, for a conditional use permit to legalize a counseling center in an existing industrial building at 2950 Airway Avenue, Suite B3, in an MP zone. Environmental Determination: Exempt. MOTION/Continued On motion by Council Member Monahan, seconded by Mayor Pro Appeal of ZA-01-38, Tem Dixon, and carried 5-0, the following public hearing was Cox, to December 3,. continued to the meeting of December 3, 2001: 2001 Application from Mayor Pro Tem Dixon appealing the Planning Commission's approval of Minor Conditional Use Permit ZA-01- 38, for Chip Cox, authorized agent for James R. Lewis, 26272 Yolanda Street, Laguna Hills, to allow an automotive impound yard for Jim's Towing, 913 and 917 West 18th Street, in an MG zone. Environmental Determination: Exempt. OLD BUSINESS The Deputy City Clerk presented a request from Eugene Chan and Request for Rehearing Gladys Chock for rehearing of the City Council's October 15, 2001, for PA -01-25 decision to uphold the Planning Commission's denial of PA -01-25 for a conditional use permit to allow truck rental at the mini -storage F_ 1 located at 2458 Newport Boulevard. The Associate Planner reviewed the Agenda Report dated November 6, 2001. Eugene Chan, the applicant, reported that he had additional information which he was unable to present at the time of the original hearing due to a mix-up regarding the time. MOTION/Granted A motion was made by Council Member Monahan, seconded by Rehearing of PA -01-25 Mayor Cowan, and carried 5-0, granting a rehearing of PA -01-25. Council Member Monahan asked Mr. Chan to provide the new information to staff prior to the rehearing. MOTION/Continued On motion by Council Member Robinson, seconded by Mayor Pro Huscroft House Tem Dixon, and carried 5-0, Huscroft House proposals were to December 3, 2001 continued to the meeting of December 3, 2001. NEW BUSINESS The Deputy City Clerk presented a resolution relating to the Discharge of Waste- discharge of wastewater to the Pacific Ocean. The Public Services Water into Ocean Director reviewed the Agenda Report dated November 9, 2001, and responded to questions from Council. Irwin Haydock, 11570 Aquamarine Circle, Fountain Valley, agreed with the President of the Costa Mesa Sanitary District that the City's Agenda Report, originated by Assistant City Engineer Ernesto Munoz, is the best summary of the situation to date. He encouraged adoption of the resolution. Jan Vandersloot, 2221 East 16th Street, Newport Beach, founder and director of the Ocean Outfall Group, voiced his support of the resolution and showed a photograph illustrating the magnitude of the sewage being discharged into the ocean. MOTION/Adopted A motion was made by Council Member Robinson, seconded by Resolution 01-84 Mayor Pro Tem Dixon, and carried 5-0, to adopt Resolution 01-84: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, RELATING TO THE DISCHARGE OF WASTEWATER INTO THE OCEAN. Mayor Cowan asked the City Manager to assure that this item is placed on the agenda for the City's next liaison meeting with the Costa Mesa Sanitary District and the Mesa Consolidated Water District. NEW BUSINESS The Deputy City Clerk presented revisions to Council Policy No. Council Policy 800-4 800-4, Acceptance and Recognition of Donations to City Parks and Public Facilities: Circle of Service and the Memorial Plaques to remain in the policy but to be identified separately within the policy, each having their own set of criteria while sharing common procedures; and Costa Mesa Community Foundation, the. City's nonprofit corporation which also accepts donations to be used for projects that benefit the City, be included in the policy.- The Recreation Manager summarized the Agenda Report dated October 19, 2001. Mayor Pro Tem Dixon suggested that the program wherein citizens may purchase a park bench, including installing a personalized plaque on the bench, be advertised. MOTION/Approved On motion by Council Member Monahan, seconded by Council Revisions Member Robinson, and carried 5-0, the revisions were approved. CITY MANAGER'S The City Manager announced. that he will be asking Council REPORT/JWA Member participation, in meetings in December, 2001, with the Settlement Agreement County Board of Supervisors to discuss the John Wayne Airport Meetings Settlement Agreement extension. He complimented Council on manner -in which the Home Ranch hearings were conducted. COUNCIL Council Member Robinson thanked Council for acceding to her COMMENTS desire to hold additional meetings on the Home Ranch project, Home Ranch stating that it had, been of benefit to the community, allowing everyone the opportunity to speak. Council Member Steel echoed the above remarks, and hoped that everything works out. Council Member Monahan complimented the Mayor for her leadership in the Home Ranch hearings. Tree Lighting Mayor Pro Tem Dixon reminded the community that the holiday tree lighting will take place on Monday, November 26, 2001, in Town Center, and, the All American Boys Choir will provide entertainment. CERT Program Mayor Cowan agreed with the comments on Home Ranch, and thanked her fellow Council Members for their hard work and support. In light of the disaster on September 11, 2001, she advised the community of the "Community Emergency Response Team" (CERT) program, sponsored by the Costa Mesa Fire Department, and encouraged participation in classes scheduled in November and December, 2001. She provided the name of the CERT coordinator, Teri Duenall, (714) 327-7405. She asked the City's video staff to prepare an announcement to be aired on Channel 74. ADJOURNMENT The Mayor declared the meeting, adjourned at 11:55 p.m. Mayor of the City of Costa Mesa ATTEST: 3" T . 'L�- v Deputy Cit I lerk of the City of Costa Mesa 1