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HomeMy WebLinkAbout06/19/1995 - Adjourned Regular MeetingCITY OF NEWPORT BEACH An 1 ^11nuen •.ee,.L.,. MINUTES ROLL CALL ¢ 3 Q3Q=° H r ¢ pq w U M X w > O (Do H w Z I1V.IVVA\LV VV V\VL I \GC\V PLACE: Council Chambers TIME: 4:00 P.M. DATE: June 19, 1995 INDEX PiOt x x x x x x x ROLL CALL. I. Mayor Hedges opened the continued public Preliminary hearing regarding the PRELIMINARY BUDGET FOR Budget 1995 -96. 1995-96 Mayor Hedges referenced the budget document entitled Resource Allocation Plan and recommended the Council review department by department. He stated that if any Council Members had items to be placed on the budget check list for June 26 Council meeting, it could be handled at this time. • City Manager /City Council In response to question raised by Council Member Watt regarding the State Constitution revision, the City Manager stated that staff could provide a summary and update on this subject for the quarterly study session meeting of the City Council to be held on July 24, 1995. Mayor Hedges requested the Human Services • Allocation of $25,000 in the City Council portion of the budget be put on the check list. • City Clerk In response to question raised by Council Member Glover, the staff advised that the Legislative Records Clerk presently in the City Clerk's office, will be working four hours per day in the Clerk's Office and the other four hours in the Personnel Division of the Administrative Services Department; however, the annual salary will still be reflected in the City Clerk's budget as a full -time employee. • City Attorney No comments. • Administrative Services In response to question raised regarding Capital Equipment and Debt Service, the Finance Director stated that previous to this year, the lease of the • computer equipment for the GIS System was shown as a capital project, but it now has been moved into the line item budget in Administrative Services. He also noted that the City will be spending much less in terms of leases than in past years. Volume 49 - Page 250 CITY OF NEWPORT BEACH MINUTES ROLL CALL cri Q Q�WW0 W :K ¢ CM U M000 � °Z W June 19, 1995 INDEX In response to comment by Mayor Pro Tern Debay regarding the pie charts shown in the budget, the Finance Director stated that in the final budget document, the pie charts will be colored for improved clarity and dollar amounts will be inserted in the respective boxes referencing the actual budget for that division within that department. In response to question raised by Council Member Glover regarding replacement of vehicles, the City Manager discussed the various line items relative to this subject, and stated that in each of the departments' budgets, there are accounts 8020, 8022 and 8024, which pertain to gasoline, car washes, equipment maintenance, internal service fund charge, and equipment replacement. In terms of the number of vehicles the City is proposing to purchase in the 1995 -96 fiscal year, he noted that on page 69 of the Resource Allocation Plan, there is a listing of all the proposed vehicles for acquisition. Also, on page 70, all current rolling stock and aircraft in service is • reflected. In response to question raised by Council Member Glover regarding education and training as defined in the budget, the City Manager discussed the City's tuition reimbursement program as set forth in the Personnel division and stated this program is available to all employees. He also pointed out that every department has a training line item for "specialized " training for that particular department. He discussed Scholastic Achievement Pay in the safety departments, and summarized the purpose of the travel and meeting accounts. Mayor Hedges requested staff update the Council on the City's Idea program, and ways to improve it if deemed necessary. • Police Department In response to question raised by Council Member Watt, the City Manager discussed the Internal Service Fund for the maintenance and replacement of City vehicles which is under the • General Services Department in the budget, and noted that a complete review of the "shop operation" will take place in the near future in terms of its efficiency, cost - effectiveness, etc., and how the City rates compare with that of the private sector. Volume 49 - Page 251 CITY OF NEWPORT BEACH MINUTES ROLL CALL W M C�¢0 A W ¢ 3 W M Lo W 2 ° 0 WW o 0 19, ? 0 June 1995 INDEX The City Manager also discussed the equipment • maintenance operation at the Police Department which is currently staffed by three General Services Department employees. He stated that the Police Department has submitted a proposal to him to possibly "re- think" how the police vehicles are maintained, the feasibility of breaking off the maintenance of those vehicles by the General Services Department, and the possibility of a leasing operation. He indicated a full staff report would be coming to the Council on this item. In response to question raised by Council Member Edwards regarding maintenance and operation in the Police Department, Captain Jim Jacobs stated that the decrease in the maintenance and operation account as compared with previous years is primarily due to the joint purchasing of fuel for the helicopter, and the fact that they are also deferring some major helicopter maintenance to the 1996 -97 budget. • The City Manager noted that the City is part of a joint powers agreement for use of the helicopter, and that revenue will be coming into the joint powers agency for contracting with other cities for helicopter services, and that over time, staff would like to take the revenue received from the agency, (estimated at $40,000 to $50,000 per year) and set it aside for future maintenance and /or replacement of the helicopter itself. Mayor Hedges referenced the request for $27,000 for crossing guards, and stated he is not ready to put this item on the check list this year, but he would like to pursue a discussion relative to what is actually a school district's responsibility. He stated he also felt that possibly volunteers could staff this program. • Fire and Marine Council Member Watt discussed her support for a City -wide community disaster preparedness program, and the benefits of job sharing among employees and departments in order to carry out such a plan. In response to the above, the City Manager stated that the disaster preparedness program referred to by Council Member Watt "fell by the way - side" two years ago; however, staff can look into funding this operation through joint services. He stated that he and the Fire Chief have talked on this subject and will be bringing a report to the Council at their special study session on July 24. Volume 49 - Page 252 CITY OF NEWPORT BEACH MINUTES ROLL CALL a: Q W ¢ 3 M wW M o W 2 ° 0 w o 0 w ? 0 June 19, 7995 INDEX • In response to question raised by Council Member Edwards regarding City -owned parking lot fees, and whether or not the City should think about increasing those rates, the City Manager stated that he will furnish the Council with a copy of an outside study completed just recently on parking lots along the coast, with the theory being that perhaps the rates have peaked and gone beyond the market place inasmuch as a number of lots are seeing fewer patrons. The City of Newport Beach was included in the study, and it was determined that our rate is not as big a factor as the weather. In response to question raised by Council Member Glover relative to compensated absences, the City Manager stated that this fund is being set aside to cover payment to employees when they leave the City and have benefits accumulated on the books such as flex leave, sick pay, etc. In response to Council Member Glover's comments regarding the cost of providing emergency medical service, the City Manager • noted that pursuant to Council action June 12, 1995, a contract was awarded to KPMG Peat Marwick for a Cost Recovery Analysis on both user fee and nonuser fee activities, which includes emergency medical service, and that the study should be completed by October. He also stated that staff has been studying the feasibility of providing ambulance service, and that a report will be coming to the Council in the very near future. • Planning and Building In response to question raised by Mayor Pro Tem Deboy regarding the proposed $157,000 in salary savings which will be satisfied by program or personnel changes involving both departments by year -end, Ken Delino, Assistant City Manager /Community Development, addressed the Council and requested he be allowed six months to evaluate the operation to determine just how he might achieve the salary savings or program reductions. He stated the staff in the Planning Department is very talented, and he • would like to be given the opportunity to work with each of the employees prior to making any recommendation with respect to possible lay offs and /or program reductions. The Council indicated they had no objections to the above request. Volume 49 - Page 253 CITY OF NEWPORT BEACH MINUTES ROLL CALL LO ��¢(D A W ¢ X w W 2: ° U 'W J 0 ? 0 lone 19, 1995 INDEX • General Services No comments. • Community Services Council Member Glover stated she would like to see staff work towards keeping Mariners, Balboa and Central Libraries open the same amount of days. She noted that the Central Library is open two more days than Mariners and Balboa branches, and she feels this is not equitable to the residents on this side of town. In response to the above, the City Manager commented that this issue was discussed by the Finance Committee as well as the Library Board, and in order to keep within the budget target, it was the Board's recommendation to reduce the hours at those two branches. If the Council would like to add hours at these two facilities, the funding would have to come from the General Fund balance or fall under some other program in the budget. • Mayor Hedges stated he felt this was an issue that still needed a lot of staff work, as well as the matter of nonresident use, inasmuch as it is now approaching fifty percent and will continue to increase. Council Member Edwards indicated he would like the City Attorney to bring back a report regarding the statute on the approximate $300,000 subsidization the City receives annually from the State, and its impact on the City if the City were to charge for library services. At the request of the Mayor, the City Attorney indicated he would provide a report on this subject for the July 24 study session. Council Member Glover emphasized that she considers library services a "basic service" and as long as the City is not keeping Mariners and Balboa branches open the same amount of days, she felt the City is not providing that basic service which, in her opinion, is very wrong. Mayor Hedges requested the Arts and Cultural Grants be put on the budget check list. • Public Works No Comments. Volume 49 - Page 254 CITY OF NEWPORT BEACH MINUTES q ROLL CALL 3��Ax'0z w 3 A In = ° Q' L9 J o June 19, 1995 INDEX • Capital improvements Council Member Cox stated that prior to reviewing Capital Improvements, he would like to make an overview comment relative to the new budget format, and complimented the staff on a significant improvement from past years. He did indicate, however, that he did not think the budget was clear enough on identifying what services the City provides and what those services cost. He felt staff should begin to "change its thinking so that everyone has a better understanding of what kind of performance the City gets out of these services." He also stated he felt it would make a lot more sense if the staff could "develop ways of having benchmarks that have a better relationship to what it is we are actually doing in anyone of these departments or functions." He felt this information would be very useful in the executive summary portion of the budget. The City Manager noted that one of the items to be included in the Cost Recovery Analysis referred • to earlier in the meeting, will be the development of performance indicators for use in monitoring and benchmarking City accomplishments, as well as to identify costs by activity for all areas of City government. With respect to Capital Improvements, Mayor Pro Tern Debay discussed the parking problem across Newport Boulevard from City Hall; the impact that parking has on the businesses; and the need to increase metered parking spaces in the City Hall parking lot; and therefore, suggested this item be put on the budget check list. In response to question raised by Council Member Glover regarding the parking agreement the City entered into recently with St. James Church, the City Manager stated that that particular parking lot can now be used as a back -up lot for employees as well as visitors. Mayor Hedges asked if anyone in the audience would like to address the Council regarding the • budget. Tom Hyans, President, Central Newport Beach Community Association, addressed the Council and discussed reduction of automobile expenditure, and what the City is saving by privatizing tree trimming and median landscaping. Volume 49 - Page 255 CITY OF NEWPORT BEACH )588.0911M ROLL CALL Q��� a w ¢ XMM000 w w o �W ° ? June 19, 1995 INDEX n x Hearing no others wishing to address the Council, AlWyes motion was made by Mayor Pro Tem Debay to continue the public hearing on the 1995 -96 Preliminary Budget to June 26, 1995. 2. Status report from City Manager and General County Landfl Services Director regarding COUNTY LANDFILL Gate Fee GATE FEE INCREASE. In providing some background information on this item, it was noted that on May 24, 1995, the Orange County Board of Supervisors approved a landfill disposal fee increase from $22.75 per ton to $35.00 per ton. This action, which is effective July I, 1995, will add $532,000 of unbudgeted costs for the 1995 -96 Budget. The City Manager outlined the following alternatives to offset the unbudgeted increase: ..Privatization of Refuse Collection Operations ..Reconsideration of Automated Refuse Collection Program ..Refuse Collection Fee is ..Development of a Green Waste Recycling Program ..Limit on amount of refuse collected from each residence ..Consideration of options offered by City recycling contractor ..Deferral of Landfill Fee Increase ..Budget reductions to offset landfill fee increase It was recommended the Council take the following actions: 1) Direct staff to update the Automated Refuse Collection Study to include capital outlay costs and anticipated savings. 2) Refer consideration of a green waste recycling program to the Environmental Quality Affairs Committee for further study and report back by August 14, 1995. 3) Direct the City Attorney to study the legality of an ordinance establishing a limit • to the amount of resident's weekly refuse collected by City crews and refer the matter to the Environmental Quality Affairs Committee for further study and report back by August 14, 1995. Volume 49 - Page 256 CITY OF NEWPORT BEACH ROLL CALL v, X�¢0 q3 Ld3g2UC7O Q w w o 'w ° ? June 19, 1995 INDEX It was pointed out that the City Council on June 12. 1995, approved an update of the 1993 refuse collection privatization study to be prepared by SCS Engineers, Inc., at a cost of $7,000, and that the City should be receiving a draft of this study in early July. In response to questions raised by various Council Members, the General Services Director noted the following: If the City were to privatize refuse collection, the private contractor may wish to automate collection for efficiency; he felt the City should reconsider automated refuse collection inasmuch as there are now 17 cities of the 31 in the County that have gone to automation; if the City were to go to automation there would be a considerable cost savings to the City; if the City were to automate refuse collection, the City would continue with mixed waste processing, and each household would be limited to one to two containers; if the City were to charge for refuse collection, the approximate cost would be $11.41 per household per month; approximately 50% of • the City could be fully automated; however, the residents on Balboa Island and the Peninsula, would be served by smaller trucks with semi automation equipment rather than the larger trucks with a robotic arm. Madeline Arakelian, South Coast Refuse, addressed the Council and suggested that after the updated privatization study is completed by SCS Engineers, Inc., that she and other interested refuse haulers be given the opportunity for input. With respect to automated refuse collection, she stated this is not a "simple" solution, and she would caution the Council to give the matter serious consideration. She stated she is also working on using green waste as daily cover for the landfills. Dolores Citing, five -Star Rubbish, addressed the Council regarding the cost for residential refuse collection, noting that in unincorporated areas of the County, the cost per household ranges from $13.06 to $16.00, and therefore, the City's figure of $11.41 would be the most cost - effective rate in the County for this service. She suggested the City • investigate the possibility of implementing a curbside newspaper program, and also expressed her views regarding nonresident use of City libraries and automated refuse collection. Volume 49 - Page 257 CITY OF NEWPORT BEACH MINUTES ROLL CALL ��¢0 A LJ ¢ 3 W g w M o 0 Ww ° 0 ? 0 June 19, 7995 INDEX Novello Hendrickson, 1991 Port Claridge Place, • addressed the Council regarding automated refuse collection, stating that if the City does decide to implement this type of operation, she felt it should be introduced in an equitable manner, and not just in selected areas of the City. She also discussed the size of the containers, and stated that some of the barrels are too large to pass through a side yard and /or gate. With regard to the Library budget, she suggested that the dollar figure the City actually receives from the State for the previous year be shown in the budget rather than the estimated amount. Council Member Waft vacated her seat at this time. The City Manager pointed out that given the new landfill rate effective July I, 1995, the cost for residential refuse per household per month would be $14.26 rather than $11.41 if the charge were to be effective this date. Motion x Motion was made by Council Member Cox to Ayes x x x x x x approve the above recommendations, one through three, as set forth in the above. Mo ion x Motion was made by Council Member O'Neil to Ayes x x x x x x direct staff to send a letter to County Supervisor Marian Bergeson in appreciation of her efforts and staff time on the County Landfill Deferral Offer. Council Member Wait resumed her seat at this time. Motion x Motion was made by Mayor Hedges to direct staff All Ayes to bring alfernatives to the Council for fee increases for budget cuts which would obviate the need for placing the issue of refuse collection on the ballot. 3. Urgency agenda item - ROCKWELL INTERNATIONAL Rockwell EXPANSION. International Expansion Motion x Motion was made by Council Member Cox to All Ayes declare this an urgency Item which arose since the posting of the agenda on Friday, June 16, 1995. Ken Delino, Assistant City Manager, summarized his report as follows: Rockwell Corporation is contemplating a substantial expansion in their • computer chip manufacturing facilities to take place either in the Newport Beach facility on Jamboree near MacArthur or in the City of Colorado Springs; Rockwell has been offered various incentives from Colorado Springs, and before making their decision they want to know what if any incentives the City of Newport Beach Volume 49 - Page 258 CITY OF NEWPORT BEACH MINUTES ROLL CALL ¢�¢U A LJ3m=000 ¢ w q o >W ° ? June 19, 1995 INDEX • will offer, the immediate project is an expansion worth approximately $168 million which can either remain in Newport Beach or serve as "seed" money to serve a new facility where Rockwell can continue to expand; Rockwell is now the 12th highest contributor of taxes to the City at over $330,000 per year there are basically three items which the City can provide as incentives; 1) fast track permitting and inspection as provided in the last major expansion, 2) approval and public hearings for additional land use entitlements which would require a General Plan Amendment, and possibly a development agreement and 3) tax rebates (increased property tax, and self - accrual of use tax); the Orange County Business Council, the State of California and Southern California Edison will also be putting together an incentive package which will relate to the general amenities of Orange County, the quality and costs of electrical power and various tax credits and training packages. Mr. Delino recommended the Mayor be . authorized to execute a letter to Rockwell International Corporation, as drafted and included with the staff report, and that staff be directed to follow up with Rockwell as necessary. In response to question raised by Council Member Watt regarding possible traffic impacts, etc., Mr. Delino stated that for this particular project, all Rockwell needs is a building permit inasmuch as they are trading out 20,000 sq. ft. of office space and are relocating those employees to facilities they have leased in Koll Center and filling in the office space with manufacturing. With respect to traffic generation, building bulk, FAR, etc., he stated that remains the same. What Rockwell is concerned about is whether or not the City is willing to consider additional entitlements on that property because this might be the first of more entitlements in the future. Council Member O'Neil stated that in essence, the Council is being requested to give a "vote of confidence" to Rockwell and send a message to them that the City is interested in working out a program of incentives to convince them to stay in • Newport Beach. lotion x Motion was made by Council Member Edwards to authorize the Mayor to execute the letter Included with the staff report. Mayor Pro Tern Debay stated she will support the motion based on the next to last paragraph of the letter which reads: Volume 49 - Page 259 CITY OF NEWPORT BEACH MINUTES ROLL CALL q 3 Q¢ w � 3 w M (r7 m w 0 U Q 0 z J 0 J 0 Junie 19, 1995 INDEX "Final City Council approval of land use • entitlements, Development Agreements and rebates will, of course, require extensive review and formal hearings, however, I can assure you that the City Council will give them their full attention in as short a time frame as possible." Mayor Hedges stated that inasmuch as the subject letter will be going out over his signature, he would like to make a few minor changes with respect to grammar and punctuation, but that the intent will remain the same, to which there were no objections from the Council. All Ayes The motion was voted on and carried. Meeting adjourned at 6:35 p.m., to the Closed Session meeting. The City Council reconvened at 7:45 p.m., took no action, and immediately adjourned. •MtW YiYtiYtik W t�+kiiiti Y4ittt• The agenda fro this meeting was posted on June 16, 1995 at 2:30 p.m., on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Aj,k -) Mayor ATTEST: €'O�A Y City Clerk 4 v r • Volume 49 - Page 260