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HomeMy WebLinkAbout06/11/2002 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session June 11, 2002 - 4:00 p.m. ROLL CALL Present: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway; Glover (arrived at 4:30 p.m.) Absent: O'Neil (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Proctor confirmed that the street closures recommended in Item No. 5, Fourth of July Street Closure Resolution, were the same streets that were closed the prior year. In reference to Item No. 3, Swimming Regulations — Diving or Jumping from Public Property, Mayor Pro Tem Bromberg asked if a person would be allowed to jump from a seawall under the new ordinance. City Attorney Burnham stated that persons would be prohibited from jumping from any seawall. Mayor Ridgeway recalled an incident where the City was held liable for injuries caused by a person jumping off of a seawall. 2. 2002 -03 BUDGET REVIEW INCLUDING REVIEW OF STAFF PRIORITIES FOR FY 2002 -2003 (contd. from 5/28/02). Staff Priorities Using a PowerPoint presentation, City Manager Bludau stated that staffs first priority for the 2002 -2003 fiscal year is to obtain all necessary approvals to extend the John Wayne Airport Settlement Agreement consistent with Scenario 1 as described in Environmental Impact Report (EIR) 582, and maintain the integrity of the Settlement Agreement once approved. He stated that the second priority is to complete the general plan outreach and begin the general plan update process. He stated that the goal is to complete the public outreach, determine the scope of the update and have all of the consultants working on the revisions by July of 2003. City Manager Bludau stated that Assistant City Manager Wood would be the staff member responsible for the priority. He listed the action steps that would need to take place to meet the goal. City Manager Bludau stated that the third priority is to prepare a draft of the Local Coastal Plan (LCP) and submit it to the California Coastal Commission staff by June 30, 2003. He stated that Planning Director Volume 55 - Page 191 INDEX 2002 -2003 Budget Review (35/40) City of Newport Beach Study Session Minutes June 11, 2002 INDEX Temple would be responsible for the priority. He briefly listed the action steps that would take place. The fourth priority is to develop a traffic signalization management system that would result in maximizing smooth and safe traffic flows throughout the City, with Public Works Director Badum being the responsible staff member. City Manager Bludau stated that the fifth priority involves developing an organizational response to National Pollutant Discharge Elimination System (NPDES) and Upper Bay water quality requirements. He stated that he and Assistant City Manager Kiff would look at the organization and decide how to best deal with water quality issues. The sixth priority would be to develop a comprehensive strategic plan for existing City buildings. He stated that the goal is to develop a long -range plan showing facility needs and what would be required to meet those needs. City Manager Bludau stated that Public Works Director Badum and ]Fire Chief Riley would be the responsible staff members. City Manager Bludau stated that the seventh priority is to develop a joint Mariners Library planning process with the Newport -Mesa Unified School District resulting in preparation of the construction plans. He stated that this priority assumes receiving the grant from the State. The eighth priority is to complete the East Santa Ana Heights, Bay Knolls and Emerson annexations, with the goal of having them effective by July 1, 2003. Assistant City Manager Kiff is the responsible staff member. The ninth priority is to identify the permanent location for Fire Station 47 and identify the funding sources for land acquisition and construction. City Manager Bludau stated that Fire Chief Riley and Assistant City Manager Kiff are the staff members responsible for the priority. The tenth priority is to increase the level of disaster preparedness training received by City employees, which would result in increased competence in performing their Emergency Operations Center (EOC) responsibilities. :Fire Chief Riley is responsible for the priority. The eleventh priority is to complete the cable TV franchise and ordinance renewal/revision processes with the goal of having the new franchise agreements in effect by June of 2003. Public Information Officer Jackson is responsible for meeting the goal. City Manager Bludau briefly listed the action steps involved. The twelfth priority is to identify the funding sources, prepare the plans and begin construction of the Big Canyon reservoir cover. Utilities Director Davidson and Public Works Director Badum would be the staff members responsible for meeting the goal of having construction begin by June 30, 2003. Council Member Heffernan asked if any priorities could be added to the list. Volume 55 - Page 192 City of Newport Beach Study Session Minutes June 11, 2002 INDEX City Manager Bludau stated that the City Council can request priorities at any time, but that staff has done their best to identify the top priorities for the 2002 -2003 fiscal year. Council Member Heffernan stated that the specific terms for the City taking over the slope maintenance in the Newport Coast area should be added to the list. He stated that it is both a cost item and a liability issue. City Manager Bludau stated that the City is still determining the square footage total, and should be able to announce the cost within the next couple of weeks. Mayor Ridgeway asked if the steps to achieve the twelve priorities had been budgeted for the 2002 -03 fiscal year. City Manager Bludau stated that they had, with the exception of the cover for the reservoir since the funding source has not been determined. Mayor Ridgeway further confirmed that with the exception of the reservoir cover, which is a Capital Improvement Program (CIP) project, the other priorities are budgeted through the general fund. Additionally, City Manager Bludau stated that $500,000 has been budgeted for ongoing work in regard to the airport settlement agreement. Additional Information Requested Administrative Services Director Danner stated that Council Members Heffernan and Glover asked for additional information regarding the budget during the Study Session on May 28, 2002. Coincidentally, he stated that staff had been working on a revenue /expenditure comparison of the cities in Orange County. He provided a copy of the report. Using a PowerPoint presentation, Administrative Services Director Danner displayed a graph, which showed the sales tax revenue in the City from 1988 -89 through 2000 -01, and estimates for 2001 -02 and 2002 -03. He noted that sales tax is the City's second largest revenue source. Mayor Ridgeway stated that some of the local restaurateurs are attributing their drop in sales, this year, to lack of tourism. Administrative Services Director Danner confirmed that the largest sales tax producer for the City is the restaurants. Administrative Services Director Danner displayed a bar chart, which showed the percentage of sales tax revenue to other governmental revenue, and noted that it's generally about 17% of the total. He then displayed a bar chart showing how Newport Beach compares to other cities in Orange County and noted that Newport Beach is less reliant on sales tax than many of the other cities. He also displayed a bar chart of the major sales tax sources for several of the cities in Orange County and noted that Newport Beach is more dispersed amongst the various sources than some of the other cities. Administrative Services Director Danner then displayed a chart showing how Newport Beach compares to other cities in Orange County in capital outlay and total expenditures. The chart showed the population of each of the cities and how they ranked in terms of capital outlay and total expenditures per capita. He displayed the same information in a bar chart format. Volume 55 - Page 193 City of Newport Beach Study Session Minutes June 11, 2002 INDEX Administrative Services Director Danner displayed a bar chart showing the City's expenditures for public safety, public works, community services, general government and community development for 1992.93 through 2000 -01 and estimates for 2001 -02 and 2002 -03. He noted that public safety has remained the City's highest expenditure. City Manager Bludau noted that the increase in general government expenditures during the past four years has been due to airport- related matters. Administrative Services Director Danner displayed a bar chart showing a comparison of the expenditures per capita for the cities in Orange County for four functions in 1998 -99. The functions included general government, public safety, community development and culture & leisure. City Manager Bludau stated that Newport Beach's public safety expenditure function includes the lifeguards, which many of the cities do not have. Administrative Services Director Danner summarized the expenditure per capita information by displaying a chart that showed the functions, the expenditures per capita and the City's ranking among the other cities in Orange County. Council Member Adams pointed out that the City's visitor population is not taken into account when comparing the per capita figures. Mayor Ridgeway stated that the citizens in Newport Beach will continue to demand that the City remain close to the highest ranking in terms of public safety. Administrative Services Director Danner stated that the report floes highlight some of the differences among the cities that should be taken into account when making comparisons. Council Member Heffernan confirmed that Newport Beach was ranked number one in terms of total property tax revenue in 1998 -99, and asked how the City is ranked today with the addition of the Newport Coast area. Administrative Services Director Danner stated that most cities have redevelopment agencies, which receive a portion of the cities' property taxes. City Manager Bludau added that if the property taxes received by those redevelopment agencies were added to the cities' total, Newport Beach would not be ranked number one. Council Member Glover stated it is better not to have redevelopment agencies, as it causes debt. She pointed out that Newport Beach doesn't have any debt, but many cities do. She stated that this represents how prudent Newport Beach has been, and she hopes the conservatism continues. She stated that visitors to Newport Beach can generate the need for additional services, but they can also provide additional revenue. Human Resources Human Resources Director Livingston stated that the Human Resources budget for the 2002 -03 fiscal year is basically status quo, although there are some minor increases in the personnel division due to increases in costs. She noted that the professional and technical services fund is the largest fund, and that the training fund has been increased due to the new staff members that were added the prior year. She stated that the Citywide training program was decreased slightly, although many ongoing training Volume 55 - Page 194 City of Newport Beach Study Session Minutes June 11, 2002 INDEX programs would be taking place during the 2002 -03 fiscal year. Human Resources Director Livingston stated that the risk management division of the department is also status quo from the previous year. Per Mayor Pro Tem Bromberg's question, Human Resources Director Livingston stated that the part -time position in the department was used during the previous fiscal year, but not included in the budget. It is for a contract attorney and is now a part of the budget. Human Resources Director Livingston confirmed for Mayor Ridgeway that the department has nine full -time positions. Human Resources Director Livingston referred to the internal service funds and the insurance reserve fund. Administrative Services Director Danner clarified that internal service funds are charged back to all departments. Human Resources Director Livingston stated that the insurance reserve fund includes workers compensation and general liability. She stated that the City's broker has indicated that there will be significant increases in workers compensation, excess insurance and general liability. Mayor Ridgeway stated that he is experiencing a 25% increase in insurance premiums on the properties he owns, and that it is even more difficult for the public sector. Council Member Heffernan asked if the deductible or self- insurance amounts in any of the insurance categories were being changed. Human Resources Director Livingston stated that this would be an option but if considered, would require City Council approval. Fire Department Fire Chief Riley stated that the Fire Department budget for the 2002 -03 fiscal year totals over $20 million and is a 6.87% increase from the previous year, primarily due to the new fire station in Newport Coast. He noted that one position is also being added. He stated that the department does generate some revenue, which includes plan check and fire construction inspection fees, the fire medic membership program, direct service fees and the junior lifeguard program. Fire Chief Riley stated that the department has four divisions and they include administrative support services, emergency operations, fire prevention, and training and education. He stated that the department has 147 full -time positions, with 134 being safety personnel. He noted that the number of positions changes throughout the year, based on the seasonal lifeguard staffing. Fire Chief Riley stated that eleven supplemental items were submitted to the City Manager, and three were approved. One item that was approved was for a new Fire Prevention Inspector, which was needed due to the annexation of Newport Coast. He stated that an additional fire engine is also being added to the fleet and the amount of money used for fire hose replacement has been increased. Fire Chief Riley stated that a fourth supplemental request for sending additional personnel to paramedic school is being handled by rebudgeting money that wasn't used for training during Volume 55 - Page 195 City of Newport Beach Study Session Minutes June 11, 2002 the 2001 -02 fiscal year. INDEX Fire Chief Riley stated that 83.16% of the department's total budget is used for salaries and benefits. He noted that a significant portion of the budget is used for overtime due to the continuous staffing that must occur. Fire Chief Riley additionally pointed out the money budgeted for equipment maintenance and replacement, and noted that nearly $1 million is spent to keep the department's fleet operating. The budget also includes the rental fee for the temporary trailer and engine at the Santa Ana Heights station, and money for the fire communications system. He explained that this is a Joint Powers Agreement (JPA) for dispatch services. Council Member Glover asked how much the cost of the JPA increases per year. Fire Chief Riley stated that it's a reasonable increase at about 4 -% 06 to 5% per year. The program costs the City approximately $1,000 per clay, seven cities participate and it is run out of Anaheim. Fire Chief Riley noted another JPA that the City participates in, which is the central training; in Huntington Beach. He stated that participation in this JPA will be evaluated during the upcoming fiscal year. Lastly, Fire Chief Riley pointed out that over $120,000 is spent on junior lifeguard uniforms. Council Member Heffernan complimented the allocation plans provided in the resource allocation plan for each of the departments. He stated that they should be a part of the budget review because they provide a helpful four -year trend. Planning Department Assistant City Manager Wood stated that most of the changes to the Planning Department budget for the 2002 -03 fiscal year are structural, meaning that how costs are shown and where they are presented has been changed. She noted that the amount budgeted for overtime has decreased due to an increase in staffing. She also pointed out the money budgeted for various projects. Council Member Glover asked for an update on the status of the project to develop new sign regulations. Assistant City Manager Wood stated that the project has not been started, due to the focus on the general plan update. Additionally, per Council Member Adams' question, Assistant City Manager Wood stated that $40,000 is being carried over for the project from the current fiscal year. Council Member Glover asked if $40,000 would be sufficient. Assistant City Manager Wood stated that it should be, and added that the work already done for the Balboa Peninsula and Mariners Mile might be useful when looking at the other parts of the City. Assistant City Manager Wood stated that the Planning Department has added a new division, which is the community development division. She stated that this is a part of the structural changes mentioned earlier. Volume 55 - Page 196 City of Newport Beach Study Session Minutes June 11, 2002 LKID M Mayor Ridgeway stated that he is aware of the Planning and Building Departments attempting to charge for the actual expenses incurred by staff for specific projects, and asked what percentage of project costs are covered by applicant fees. Assistant City Manager Wood stated that approximately 50% of costs are recovered in the Planning Department, and added that all of the fees should be reviewed. She additionally noted that two new positions were requested that were not approved by the City Manager, which included an Associate Planner to work on cases going to the Planning Commission and an Assistant Planner to work on code amendments and housing issues. She stated that if cost recovery were improved for development review, these positions could be funded through that revenue. Mayor Ridgeway stated that cost recovery should be a priority. City Manager Bludau stated that a report would be presented within the next couple of months. Council Member Glover recalled that a fee study had been done several years prior. Administrative Services Director Danner confirmed that the study was done about six years ago and that the fees have been adjusted annually based on cost of living and employee costs. Assistant City Manager Wood stated that fee studies, in general, don't take into account how much time is spent on various use permits, variances and zone changes. Council Member Glover stated that it was a thorough study. Assistant City Manager Wood stated that the information from staff could have been more detailed, but that they are now tracking the information and will have a good database when looking at adjusting the fees. Building Department Building Director Elbettar began by announcing that the Building Department will be holding a user group meeting on June 17, 2002, to present the new procedures for processing plan checks. He stated that it will also provide the opportunity to discuss other issues and respond to questions. Mayor Ridgeway stated that completing plan checks within four weeks will be a challenge, but he complimented the effort. City Manager Bludau clarified that the four -week goal would be from the time the plans are initially received to the time the City sends back its comments. Building Director Elbettar stated that the budget for the Building Department for the 2002 -03 fiscal year is basically status quo with no major changes, although there are some minor reallocation of funds and an increase in the training budget. Building Director Elbettar stated that the largest item in the operating budget is the $198,000 budgeted for the hiring of outside consultants to assist with plan checks. Per Mayor Ridgeway's question, Building Director Elbettar stated that the plans that are checked by outside consultants are still reviewed by staff for completeness. Mayor Ridgeway stated that he understood the need for private plan checks when the workload exceeds what can be done by staff, but he discouraged the use of outside consultants whenever possible. Building Director Elbettar stated that the use of outside consultants will Volume 55 - Page 197 City of Newport Beach Study Session Minutes June 11, 2002 INDEX most likely not be reduced, although they are used as a last resort. Mayor Ridgeway stated that he hoped that the new procedures would assist staff in handling the workload. Per City Manager Bludau's question, Building Director Elbettar stated that the plans sent to the outside consultants are still intended to meet the four -week goal. Building Director Elbettar stated that a new inspector has been budgeted due to the annexation of Newport Coast, but it has not been filled yet. Per Council Member Heffernan's question, Building Director Elbettar stated that the County handles the planning and entitlements in Newport Coast. The City would handle secondary permits. Referring to the resource allocation plan, Council Member Heffernan asked for an explanation of the steady drop in revenue for the department. Building Director Elbettar stated that the increase in 1998 represents the transfer of permit fees to the City from Irvine when Bonita Village was acquired. He stated that the decrease in revenue is also due to the drop in commercial activity since the passage of Greenlight. City Manager Bludau noted that, due to remodels, the number of inspections has remained the same while the assessed valuation has decreased. Council Member Heffernan stated that Greenlight might not be the sole reason for the drop in commercial activity. General Services Department General Services Director Niederhaus introduced Deputy General Services Director Pisani and stated that he assists with the department's budget and also manages the internal services fund. Using a PowerPoint presentation, General Services Director Niederhaus noted that the department's general fund budget has increased 10 %, the capital improvement program has decreased 13% and the internal service fund has decreased 34 %. He listed the major items in the general fund accounting for the increase. Council Member Heffernan asked if the Newport Coast maintenance item included the slope maintenance he mentioned earlier in the meeting. General Services Director Niederhaus stated that it is not contained in the General Services' budget. General Services Director Niederhaus continued listing the major items in the general fund, which included maintenance and refuse collection for Newport Coast, increases in salary and benefits, vehicle and equipment rate increases, three approved supplemental budget requests, maintenance of the new Bonita Canyon Sports Park and tree trimming increases. Council Member Glover asked how much money would be needed to trim the older trees frequently enough to prevent the roots from spreading. General Services Director Niederhaus stated that it would cost $93,000 and would be covered later in his presentation. Per Council Member Glover's question, General Services Director Niederhaus stated that there is an adequate amount of funding to maintain the roadsides and parks. Council Member Glover stated that she is most interested in maintaining the older trees, and would budget more money towards this, if needed. General Services Director Niederhaus stated that the budget checklist items incorporate what Volume 55 - Page 198 City of Newport Beach Study Session Minutes June 11, 2002 INDEX Council Member Glover is requesting. General Services Director Niederhaus listed maintenance at Balboa Village, a recycling increase and fire ring maintenance as the other major items in the department's general fund budget. He then displayed an organizational chart of the department and noted that there are eight divisions, a consolidation of the previous nine. He added that there is an upgrade of a maintenance worker position and a deletion of a groundsworker position. General Services Director Niederhaus displayed a pie chart of the proposed budget for the 2002 -03 fiscal year. He stated that three of the eight supplemental budget requests were approved by the City Manager. He noted the approval of $45,000 for ficus tree root pruning and explained that this is one of three approaches to address the ficus tree problems as mentioned earlier by Council Member Glover. The other two are completing a Citywide tree inventory and annual trimming of the ficus trees, which are both budget checklist items. General Services Director Niederhaus displayed a detailed breakdown of the use of outside services for each of the divisions in the department. He also displayed a detailed breakdown of the use of overtime for each of the divisions. General Services Director Niederhaus displayed a slide showing the expenditures for solid waste disposal and noted that nearly half is recovered through the recycling service fee. He, additionally, displayed detailed information on the utility expenditures for the department, which included water and electricity. He also displayed detailed expenditure information for equipment maintenance and replacement. General Services Director Niederhaus stated that the department's revenue includes money received from the recycling service fee and the solid waste franchise fee. He stated that the grants included in the budget will be used towards summer litter abatement and the placing of grates over the entrances to the storm drains in Balboa and West Newport. For Mayor Ridgeway, General Services Director Niederhaus clarified that the grates would be placed on both the peninsula and Balboa Island. General Services Director Niederhaus displayed the 2002 -03 schedule for the replacement of rolling equipment for all of the departments. Council Member Glover asked how the maintenance of the parks is handled. General Services Director Niederhaus explained that all of the parks have at least five -year programs and sufficient money has been budgeted to follow the programs. Council Member Glover requested that he make the City Council aware of any shortage of money. Council Member Heffernan stated that a consistent policy should be followed for the maintenance of ficus trees throughout the City. General Services Director Niederhaus stated that the maintenance of the ficus trees includes systematic removal of some trees followed by reforestation, root pruning of those that will be saved and annual trimming of all problem trees. Council Member Heffernan asked how staff knows which trees to remove and which Volume 55 - Page 199 City of Newport Beach Study Session Minutes June 11, 2002 to trim if the inventory isn't done. General Services agreed that the inventory is the key to the program. Mayor Ridgeway suggested that the Study Session on June 25, 2002, begin at 3:30 p.m. to enable the budget review process to be completed. PUBLIC COMMENTS Regarding the City's recycling program, Nancy Skinner, 1724 Highland Drive, requested that an outside study be done to compare the system lased by the City compared with what is being used by other cities. She, additionally, requested that a test be done in a part of the City on the clean recycling system. ADJOURNMENT — 6:08 p.m. The agenda for the Study Session was posted on June 5, 2002, at 2:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secr ary i Mayor 1 Volume 55 - Page 200 INDEX