HomeMy WebLinkAbout01/12/2013 - Special MeetingCity Council Minutes
City Council Special Meeting
OASIS Senior Center
801 Narcissus Avenue, Corona del Mar
January 12, 2013 -- 8:30 a.m.
1. WELCOME
Roll Call by City Clerk Brown
Present: Council Member Gardner, Council Member Pettus, Mayor Pro Tern Hill, Mayor Curry, Council
Member Selich, Council Member Henn, Council Member Daigle (arrived at 8:33 a.m.)
Comments from the Public on Non - agenda Items
Jim Mosher took issue that none of the handouts were available ahead of time and believed that the
meeting should have been held in the new Council Chambers.
2. REVIEW WORKSHOP AGENDA
City Manager Kiff reviewed the planning session agenda.
3. 2012 RECAP - GOALS BUDGET ISSUES KEY INITIATIVES
City Manager Kiff utilized a PowerPoint presentation to provide a recap of 2012. He reported that
crime is down, Sunset Ridge Park was approved by the Coastal Commission, the Lower Newport Bay
Dredging Project removed contaminants from the Bay, the Civic Center and Park Project is nearing
completion, the negotiators and labor organizations are working together to finalize the memorandums
of understanding, and the City had a balanced budget and is adding to the reserves. Regarding the
2012 Priorities, City Manager Kiff displayed a slide and reviewed the 29 priorities listed and provided
status. Mayor Curry commended staff for their hard work during 2012.
Jim Mosher referenced the priority relative to the City's Charter and believed that this was not on last
year's priority list. Further, he believed that the Charter still needs amending, for example, as it
relates to using 'independent auditors.
George Schroeder expressed concern that the new Council Chambers still does not have Wi -Fi access
and believed that today's meeting should have been held at the old Council Chambers.
4. LOOKING TO 2013 -FISCAL PICTURE. KEY INITIATIVES AND PROJECTS
2013 Fiscal Picture
City Manager Kiff displayed a slide regarding the City's 2013 fiscal picture. He highlighted the major
tax sources and noted that, compared to previous projections, property "tax is estimated to be up 1 %,
sales tax is up 8 %, and Transient Occupancy "Pax (TOT) is up 4 %. He stated that these estimates are a
sign that the economy in Newport Beach is doing well. He reported that, with the dissolution of
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redevelopment agencies, the City's general fund will see an increase in Santa Ana Heights property
taxes. The timeline for receiving the increased revenues depends on how Santa Ana Heights is bonded.
He also displayed slides regarding residential property sale trends from 2003 to 2012, sales tax trends
(2011 vs. 2012), and the various sales tax generators. City Manager Kiff reported that the City's
approach is to free up and add to revenue to improve community infrastructure while trying to reduce
expenditures through various means, like downsizing and pension reform.
In response to Council questions, City Manager Kiff indicated that the reason the revenues shown are
only at 33% of the budget projections through December is because the County and State apportion
sales tax money at varying times in the fiscal year. Regarding sales tax, Finance Director Matusiewicz
indicated that he will verify if restaurant and hotel sales tax money can be broken out separately.
City Manager Kiff discussed the City's planned use of operational savings which will be reinvested in
general fund Capital Improvement Projects (CIPs), Information Technology (IT), and City facilities
(Facility Finance Plan - FFP). He explained how the FFP works and displayed a slide of the ambitious
FFP projects over the next 17 years.
City Manager Kiff reported that the City has over $100 million in reserves and discussed non - spendable
reserves {tidelands fund), restricted reserves, committed reserves, and assigned reserves. However, he
provided a slide of reasons that the City needs to be cautious, including retirement costs, retiree
medical issues, and Federal actions regarding the "fiscal cliff."
Development Proieet Update
Community Development Director Brandt utilized a PowerPoint presentation to provide an update on
the following development projects: 650 Newport Center Drive, 520 Newport Center Drive, Newport
Center Residences (Santa Barbara Condominiums), Newport Banning Ranch, Uptown Newport, Back
Bay Landing, ExplorOcean, Marina Park, the City Hall Reuse, and the Balboa Village Master Plan.
She also noted that the Housing Element will need to be updated to reflect the 2010 census and
provided a timeline in order to reach the October 2013 submission deadline and indicated that the work
will be done with in -house staff. Regarding the Local Coastal Program (LCP), Community Development
Director Brandt noted that the current LCP does not have a certified implementation plan. She
reported that the City's land use plan of the LCP has been certified, but without the implementation
plan, the LCP is not complete.
In response to Council questions, Community Development Director Brandt indicated that the LCP
would assist with providing certainty about how to treat canyons, bluff top developments, lines of
development, how much development is allowed, and exclusionary zones. She indicated that the LCP is
a big job and that some of the work will be done in -house by Planning Manager Alford. She believed
that, with a certified LCP, there would be less appeals to the Coastal Commission and that the City
could be more responsive to its residents. She noted that Coastal Commission staff has committed to
having monthly meetings with the City to assist in the certification process. She noted that the
technical studies in the LCP will probably include Morning Canyon and Buck Gully, and that Coastal
Commission staff has not provided comments related to the City's zoning proposal. Regarding the
South Coast Ship Yard, Community Development Director Brandt reported that the property has been
sold, but the deal has not closed yet; however, the project should be moving forward as approved by the
City. If the new owner wants to propose any changes to the project, the owner would need to go
through the entitlement process.
Key Capital Improvement Projects (CIPs)
City Manager Kiff displayed a slide in which the Capital Improvement Projects (CIPs) were separated
into three categories: 1) green (projects that are in the FY 2012 -13 budget); 2) yellow (projects added
mid- year); and 3) red (on the list, but have barriers to resolve before construction). Public Works
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Director Webb utilized slides to highlight the various projects in each of the categories
Regarding Pavement Management, 'Public Works Director Webb noted that the City is moving towards
a Pavement Condition Index (PCI) of 80; however, there are some areas in the City, like the Peninsula
and Balboa Island that are much lower than 80. He indicated that the City ranks higher than many
cities that do not have 80- year -old roads. He added that the City is also installing concrete streets
which last longer than asphalt streets. He reported that the Orange County Sanitation District (OCSD)
will be coming before Council during a Study Session to present the list of projects it will have in
Newport Beach over the next three to five years. The City has been waiting for one of those projects to
begin so the OCSD work can be coordinated with the City's Dover DriveJWestcliff pavement /median
project. Council Member Petros emphasized the need to make citizens aware that this project is
forthcoming, is not a City project, and that they will be inconvenienced while the project is underway.
Public Works Director Webb added that OCSD also has an upcoming project on Mariner's Mile,
Public Works Director Webb discussed and displayed a slide of the preliminary CIP projects for 2013-
2014, In response to Council questions, City Manager Kiff indicated that they are still considering
whether to expand the 15th Street restroom to possibly include the Junior Lifeguard Headquarters. He
also reported that the Newport Coast Community Center (NCCC) stage is being underutilized and that
there may be an opportunity to convert it into a conference room with the ability to still have the stage
in the future if it becomes needed.
Regarding funding sources, City Manager MIT reported that part of the money for Sunset View Park
will come from Hoag Hospital; $6 million of the $10 million for Marina Park has been budgeted; and
with regard to the Lower Big Canyon project, the Orange County Vector Control (OCVC) Board will pay
the planning costs, the U. S. Fish and Wildlife Services will provide some funding, and the settlement
between Defend the Bay and The Irvine Company will provide funding assistance. Regarding the red
category restoration projects, City Manager Kiff indicated that this includes the Delhi Channel and
improvements in the Santa Isabel area. Council Member Daigle reported that there may be some
funding from the County for the Delhi Channel and that the Back Bay Naturalists have been a great
resource in the Santa Isabel area.
Jim Mosher stated that some of the slides that were displayed were not included in the handouts and
requested that everything, including the audio recording and the information posted on the walls, be
posted on the Web.
Mayor Curry recessed the meeting at 10:03 a.m. and reconvened the meeting at 10:14 a.m.
with all members of the City Council in attendance.
5. PItTORTTY EFFORTS FOR 2013
2013 Priority Issues and Activities
City Manager Kiff displayed slides of the priority issues and activities for 2013, and noted that staff is
requesting direction for these items. He reported that the categories include aviation; business
improvement, marketing, and civic affairs; community engagement; coast and tidelands issues; good
planning - community development; other major public facilities /Public Works projects; park
construction and habitat improvements; transportation; and re- thinking government.
Regarding re- thinking government, Council Member Henn noted that the City needs a better handle on
what to do with the Fire /EMS model for the future before money is allocated to fire station
improvements. He expressed hope that the City can determine a conceptual approach to Fire /EMS this
year and emphasized that there are a lot of potential implications to whatever the answer is. City
Manager Kiff agreed and reported that the answer is data driven based on calls for service and
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when/bow often the calls occur. Mayor Curry suggested having these discussions over many Study
Sessions and in collaboration with appropriate personnel.
Regarding Assembly Bill 109 (AS 109), Mayor Curry noted that the City's crime is down, but crime is
up in surrounding cities. He stated that the City needs to continue to monitor the effects of AB, 109 in
the event crime needs to be addressed differently.
Regarding staffing, City Manager Kiff noted that the City has eliminated the in -house print shop and
entered into an agreement with Office Depot to provide print services; however, the internal processes
need to be worked out. He added that the City will also be studying whether it has too many entry -
level support staff. Council Member Daigle asked that the City also engage the community in
discussions about the future of refuse services. Council Member Petros suggested holding a workshop
or Study Session on this issue.
Regarding aviation, Mayor Curry indicated that the settlement agreement is on course and believed
that the City will have good results.
City Manager Kiff indicated that staff is crafting ideas about how to step out of the day -to -day business
of the Business Improvement Districts (BIDs); however, still be supportive when there are community
events and to assist with permitting. He also reported that the City would also like to create a source of
funding for art and culture. Mayor Pro Tom Hill stated that there will be an opportunity to have a
consistent branding for the City with the Chamber of Commerce and Visit Newport Beach, Inc. (VNB)
working more closely. Council Member Henn stated that, due to lack of consistent funding, the City
does not have an arts and culture program that makes sense, and that this is a glaring quality of life
deficiency that should be dealt with. He suggested moving all three of these items to green and moving
forward with proposed solutions. Council Member Gardner added that the City is losing the Orange
County Museum of Art and there is currently no place in the City to have a showing. She questioned if
the City currently has a facility to show art. Council Member Sehch agreed that the City needs to
improve its profile in the arts and culture area, stated that there needs to be a better model for the
BIDs, and expressed concern with the VNB /Chamber approach. Council Members Gardner and Henn
requested more information about the future of VNB and the Newport Beach Chamber of Commerce.
Regarding Boards and Commissions, Council Member Gardner noted that the City Council only
receives Planning Commission agendas and action reports, and questioned whether Council should also
receive information about the other boards and commissions. Council Member Henn noted that the
Council working group needs to continue its review of boards, commissions and committees (BCC)
because it could affect Council's future decisions. Council Member Selich added that the committees
that need a Council liaison have ill-defined missions. Mayor Pro Tern Hill emphasized that BCCs place
their agendas on the City's webpage. City Manager Kiff indicated that staff will look at how to best
inform the Council about BCC actions.
Mayor Curry agreed with using performance -based budgeting because it makes the City more
transparent.
Council Member Gardner indicated that the City needs to take a closer look at what to do with NBTV.
In response to Council questions, City Manager Kiff indicated that the City used to have a Legislative
Committee; however, the committee was disbanded. The City now uses the League of California Cities
(LCC) briefings and the City Attorney's network to receive the latest legislative information. He
reported that, if a letter is needed relative to legislation, the City Manager drafts a letter for the Mayor
to sign, and the City Council is copied on the letter. Mayor Curry indicated that he also receives
legislative information from the Association of Orange County Cities (AOCC). City Manager Kiff added
that the City has an adopted legislative platform and Mayor Curry noted that sometimes the letter is
needed prior to a Council meeting occurring.
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Regarding coast and tidelands issues, Council Member Gardner expressed concern that the ocean might
not be receiving appropriate attention. City Manager Kiff noted that ocean issues will be looked at by
the Water Quality /Coastal Tidelands Management Committee. Regarding a dedicated tidelands fund,
it was agreed that this would be discussed when the Tidelands Management Committee brings the
dedicated harbor fund before Council.
In response to Council questions regarding the Good Planning slide, Public Works Director Webb
confirmed that the $500,000 for the Corona del Mar Entryway Project was for construction. Council
Member Selich noted that the project needs a parking solution. Mayor Pro Tern Hill suggested looking
at parking on a district -wide basis, not per location. He also noted that the Mariner's Mile project
should move from yellow to green since a lot of the work to get consensus from the public has already
been completed. He stated that he will not be able to consider the item since he has a conflict. Council
Member Petros stated that he would be happy to fill that role on behalf of Council Member Hill,
City Manager Kiff emphasized that the City cannot do all of the other major projects right now, but will
continue to look for alternate funding sources. Council Member Petros noted that Council would be
able to make better decisions if they had more information (funding sources, location, staffing issues).
Discussion ensued relative to various projects that the City might be able to move forward on; however,
prioritization needs to occur.
Regarding park construction, Council Member Petros noted that the Hoag funds have been deposited
for Sunset View Park. City Manager Kiff indicated that staff needs to talk to Coastal Commission staff
to ensure there are no Environmentally Sensitive Habitat Areas (ESHA) on the property. Council
Member Selich suggested moving the Back Bay View Park project to at least the yellow category since
the City received $2 million from The Irvine Company for the project. Council Member Daigle
suggested placing the Big Canyon Project and Delhi Channel project in the yellow category. City
Manager Kiff indicated that Council will receive a Study Session about the plan for the City's urban
forest and the current tree inventory. Municipal Operations Director Harmon reported that the City
plans to replace trees: however, do not replace trees that were not designated to have a tree.
Regarding transportation, City Manager Kiff reported that the City has talked to other cities to see if
there could be a joint effort to share a bike /transportation expert, and Huntington Beach has shown an
interest. He stated that this person would focus on grant opportunities, the latest traffic engineering,
and go through the permitting process with Caltrans. Council Member Petros announced that the
Bicycle Safety Committee had its last meeting, thanked Council Member Gardner for all her work, and
stated that many of their ideas can go into the Bicycle Master Plan. He added that having a Bicycle
Master Plan would allow the City to receive funding from the State and Federal government. He
agreed that the City should continue with its efforts and not wait until the master plan is approved. He
reported that that the Orange County Transportation Authority (OCTA) has gone before, County
Supervisory Districts 1 and 2 to start a comprehensive district -wide Bicycle Master Plan and that
District 4 is next. City Manager Kiff indicated that $150,000 is being budgeted for this effort.
Discussion ensued relative to staffing options to work on the Bicycle Master Plan. Council Member
Henn agreed that a Bicycle Master Plan is needed but that staff needs to come back to Council with the
process. He added that the plan should also include bicycle sharing solutions. Council Member Petros
noted that when traffic studies come out, speeds tend to increase; however, he emphasized that there
needs to be a way to avoid speed increases. Mayor Pro Tom Hill added that the City also needs to work
with the school district about traffic issues.
George Schroeder stated that the Neighborhood Revitalization Committee indicated that their highest
priority is Coast Highway to 32nd Street and expressed disappointment that this project is not in the
green category. He indicated that this project would improve the appearance of the area and have it
look like the rest of the City. He also suggested studying the speed limits on Balboa Boulevard.
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Bernie Svalstad expressed hope that the Corona del Mar Entryway Project remain in the green
category; indicated that the Corona del Mar BID and the Restaurant BID will be submitting a letter to
Council with recommendations on how to restructure the BIDS; and agreed that a district -wide parking
study is needed, including parking regulations.
Frank Peters, former Bicycle Safety Committee member, believed that a full -time staff member or
contractor is needed to assist with bike safety. He noted that the City is an automobile - focused society,
but a Bicycle Master Plan is needed and he would like to assist in its development.
Jerry Cobb complimented Council and staff, and believed that Newport Beach is the best place to live.
He welcomed Council Member Petros onto the City Council.
April Morris suggested moving the Bicycle Master Plan from yellow to green.
Jim Mosher believed that the Parks, Beaches and Recreation Commission (PB &R) should review
portions of the budget that relate to the commission, should have looked at the West Newport median
issue, and should have reviewed the item that Council approved relative to Peninsula Point Park. He
noted that PB &R also did not review tidelands or bicycle issues. He also suggested, in order to make
expenditures more transparent, that Council include a section on the agenda that lists City warrants.
6. NEXT STEPS
City Manager Kiff reported that he will take the information from today's meeting and bring an item to
Council at the February 12, 2013 Council meeting. After approval of the timeline, the items that can be
implemented will be done in the latter part of 2013 with updates being provided in the Quarterly
Business Report (QBR).
The meeting adjourned at 11:63 a.m.
The agenda for the Special Meeting was posted on January 10, 2013, at 1:31 p.m. on the City
Hall Bulletin Board located outside of the City of Newport Beach Administration Building.
City Clerk
Recording Secretary
Mayor
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