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HomeMy WebLinkAbout06/25/2002 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session June 25, 2002 - 3:30 p.m. ROLL CALL Present: Heffernan, O'Neil (arrived at 4:30 p.m.), Bromberg, Proctor, Mayor Ridgeway; Glover (left at 5:30 p.m.) Absent: Adams (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR — None. Council Member Heffernan requested clarification be given to him at a later time regarding the Verizon Cell Site at 1155 Camelback Street (Agenda Item No. 22). 2. BUDGET REVIEW FOR FY 2002 -2003 INCLUDING CAPITAL IMPROVEMENT PROGRAM (CIP) (contd. from 5/28/02 & 6/11/02). Community Services City Manager Bludau reported that there are no changes regarding the administrative budget. He indicated that he has not appointed an Acting Director, but stated that the four division chiefs are reporting to him. Arts and Grant Coordinator Barbier reported that the budget for arts and culture is basically status quo and that there are no huge personnel increases. Regarding Account 8010, she noted that they have reviewed the arts organization grant requests and are recommending that about 17 organizations receive funding. She stated that this will come before Council in July for approval. She reported that there is a $1,500 increase in the budget for the Sister Cities program (Account 8257). Mayor Pro Tem Bromberg stated that he requested that $10,000 be added to the wish list for this program. Administrative Services Director Danner noted that, on the checklist for approval this evening, there is a supplement of $5,500 to bring the program to $10,000. Recreation Superintendent McGuire reported that there are no major changes to the recreation division budget, but it will be hard to compare last year's budget to this year's budget because they added two new accounts to help them track facility maintenance and to split the youth programs into sports, after school programs, and camps. She indicated that there are now nine accounts in the recreation division. She stated that there are no new full -time staff members being proposed; however, an additional $16,000 was included for part -time staff (Account 4380) to cover additional vacation camps and the second site for the summer day camp on the Balboa Peninsula. She reported that this is the first week of the camps and that Volume 55 - Page 225 INDEX 2002 -2003 Budget Review (40) City of Newport Beach Study Session Minutes June 25, 2002 INDEX they are full at both sites. Regarding Account 4340 -8070, she noted that it has been increased by $52,000 because of the expected energy and rental charges for the school swimming pools. Further, Account 4340 -8080 is up about $10,000 in order to pay the instructor since there are more students. Ms. McGuire reported that Account 4380 -8080 was increased about $15,300 to include the summer camp bus trips that happen every Wednesday during the ten weeks of operation during the summer. She stated that the whole division has a total of $5,400 for training (Account 8105) 11 full -time and up to 45 part -time employees. She noted that the 8200 account was reduced by $3,000 this year. In response to Mayor Ridgeway's questions, Ms. McGuire confirmed that the people who use the buses are charged for the use. She stated that all of the fees she mentioned also have increases in revenue to offset the increased costs. She added that this is also true for the staff increases. Senior Services Manager Jardine -Haug reported that, instead of having one division, it was broken into two divisions this year in order to track the transportation program. She indicated that the overall budget increase is due to the $68,000 Orange County Transportation Authority (OCTA) grant to purchase a fourth vehicle. She reported that Account 8023 reflects the cost of the vehicle when it will be purchased in July. She stated that the OCTA reallocation is for ten years and will be reevaluated every three years since it is based on population. In response to Mr. Bludau's question, Ms. Jardine -Haug confirmed that Newport Coast residents attend programs and also request transportation. Assistant City Librarian Gaetano stated that the library budget is fairly status quo. She indicated that there are eight accounts, but Accounts 4060, 4070, and 4080 are either funded by grants, fundraising, or contributions. She stated that there are no proposed employee increases. She reported that the maintenance and repair account across the board (Account 8030) is budgeted at $72,844; and the professional and technical services account (Account 8080) is budgeted at $93,801. She noted that the materials budget (Account 8260) increased $37,000 and reflects the money that was received last year for the annexation. She reported that there are 115 library employees and that 36 are part -time employees. Council Member Heffernan asked how the new Mariner's Branch Library affects next year's budget if it is approved. Mr. Bludau indicated that the library would be under construction so there would be no personnel costs. Public Works Public Works Director Badum stated that there are no big changes in the Public Works Department budget. He reported that minor personnel changes have occurred to better serve the public and the programs. He stated that their continued focus is on the Capital Improvement Programs (CIP). He indicated that three Senior Engineers have been reclassified to Principal Engineer positions over the past year due to the lengthy study with the Human Resources Department. Further, an Engineering Technician Volume 55 - Page 226 City of Newport Beach Study Session Minutes June 25, 2002 INDEX position in the Traffic Division has been upgraded to a Junior Engineer because there will be more emphasis in traffic signal coordination. He reported that the two changes cause minor increases in the salary budget, but they are offset by the decrease in professional services (Account 8080). He indicated that last year's budget was due to the ambitious CIP projects which are nearly complete. He believed that they will not have as much difficulty delivering the projects this year. He noted that his department will probably see some retirements this year so there may be additional salary savings occurring with their replacements. Mayor Ridgeway asked when a Traffic Phasing Engineer will be hired. Mr. Badum stated that the Junior Engineer is already working on traffic related issues. He added that they are in the process of developing a Request for Proposal for a traffic phasing study and that Transportation/ Development Services Manager Edmonston is working on the scope of work. Mr. Bludau noted that this is part of a staff priority to look at signalization to get traffic to flow more smoothly. He stated that staff will first gather data and then have a consultant review the data and make recommendations. He indicated that they hope the recommendations are implemented by the first of the year. Utilities Department Utilities Director Davidson utilized a PowerPoint presentation that Administrative Manager Deutsch generated. He reported that there are four divisions in the department (Electrical, Oil and Gas, Water, and Wastewater) with 50 full -time employees and 9.8 [full -time equivalent (FTE)) part -time employees. He indicated that there is a 3.1% increase over last year's budget which represents a 2% increase in salaries and benefits; and a 1.1% increase in operating expenses. Regarding the Electrical Division, Mr. Davidson reported that the budget is $1,068,497 which is a 7.5% increase over last year's budget. He stated that they are recommending adding a part -time employee to the division. He indicated that 29% of the budget is for salaries; 9% for benefits; 4% for vehicle equipment maintenance and replacement; 51% for power costs for mainly streetlights; and 7% for operating expenses. He reported that they are recommending the addition of one -half of a part -time employee from the Youth Employee Program (YEP) to update the 6,000 streetlight pole identifications and to inventory them into a GIS conversion. He indicated that they also added a City Hall generator maintenance fund for $6,000 (Account 8080) which was transferred from the Fire Department since they feel it was more appropriate for the Electrical Division to maintain the contract. He reported that the largest expenditure item in the Electrical Division budget is for utilities (Account 8110) in the amount of $545,000, which is a $45,000 increase due to the annexation and energy cost increases. Regarding the Oil and Gas Division, Mr. Davidson stated that the budget is $351,887 and that there is really no measurable increase from last year's budget. He reported that services and contracts make up 25% of the budget, energy to run the operation makes up 16 %, operating expenses make up 23 %, and royalties make up 36 %. He stated that large expenditures include Volume 55 - Page 227 City of Newport Beach Study Session Minutes June 25, 2002 INDEX the Sampson Oil Company which is a contract for $72,000 (Account 8080); energy at $55,000 (Account 8110); royalty payments to Armstrong Petroleum, Area Energy, and Southern Pacific at $15,000 to $20,000 a year (Account 8250); royalties to about 200 property owners since oil well casings run under their homes at $5,000 to $10,000 (Account 8250); and AQMD emission fees at $10,000 (Account 8250). Mr. Davidson reported that the Water Division is the largest division of the four at $13,353,191 which is a 2.9% increase. He indicated that salaries and benefits represent 22 %; vehicle equipment maintenance and replacement represents 2 %; energy represents 10 %; debt payment on the bond is about 12 %; purchasing imported water represents 19 %; purchasing water from OCWD is about 17 %; City services through the General Fund represent about 10 %; and the operating expenses are about 7 %. He reported that the vehicle equipment maintenance budget is $299,612 (Accounts 8022 and 8024); the energy budget is $1.3 million (Account 8110) which is a $35,000 increase; water purchases total $4,930,000 (Accounts 8295, 8296, and 8297) which is about a $62,000 increase; and City services provided by the General Fund is about $1.3 million (Account 8330). Mr. Davidson reported that the Wastewater Division budget is $1,759,471 which is a 6.9% increase. He indicated that salaries represent about 41% of the budget; benefits represent about 14 %; vehicle equipment maintenance is about 14 %; utilities for energy costs is about 3 %; City services is about 17 %; and the operating expenses represent about 11%. He stated that vehicle equipment maintenance and replacement is about $235,000 (Accounts 8022 and 8024); energy is about $49,000 (Account 8110); and City services is about $301,000 (Account 8330). He reported that the new programs include the wastewater root cutting program (Account 8155) for $8,000 a year and the computerized wastewater operation system (Account 8184) for $10,000. In response to Council Member Heffernan's questions, Mr. Davidson reported that the Newport Coast annexation does not affect the water and sewer operations since Newport Coast is serviced by the Irvine Ranch Water District (IRWD). He indicated that the City acquired 20 to 30 streetlights when Newport Coast was annexed. Mr. Davidson requested that Council add the purchase of a $98,000 sewer/ water main video inspection and recording system for pipe inspections, and the purchase of a $45,000 portable vacuum system for sewer /water operations to the checklist. Mr. Bludau stated that he and the Finance Director also recommend adding the two items to the checklist. In response to Council Member Heffernan's questions, Mr. Davidson stated that the City fixes all the sewer problems they uncover since it is owned by the City. He indicated that they have a budget of $30,000 to $40,000 to fix problem areas during the year. He confirmed that the program is not new, but the proposed video camera will replace an existing 20 year old camera. Mr. Bludau noted that Agenda Item 11 enters into a contract that would scope about 25% of the sewer system Citywide. Council Member Heffernan expressed concern that, once a problem is uncovered, the City may not have enough money to do something about it. Mr. Bludau stated that this will Volume 55 - Page 228 City of Newport Beach Study Session Minutes June 25, 2002 INDEX help them prioritize which portions of sewer lines need replacing. Mr. Danner reported that there is about $3 million in the Reserve Wastewater Fund. Mr. Davidson reported that the City's camera is used throughout the year, whereas the contract is for three months. He added that the proposed water main video system will have a recording device and the purchase includes all the necessary equipment. He reported that the system will be installed in a wastewater utility van and can also be used for storm drain, water main, and wastewater main inspections. He stated that 70% of the funding will come from the Wastewater Enterprise Fund and 30% from the Water Enterprise Fund. He indicated that current personnel will operate the system. Regarding the portable vacuum system, Mr. Davidson stated that it will be similar to what General Services will be purchasing for their storm drain filter operation. He indicated that this could be used for an emergency response portable system which they do not have now. In response to Tom Hyans' question regarding page 207 of the CIP budget, Mr. Badum stated that they are trying to televise the entire wastewater system over a four year period to determine the condition of the existing system. Mr. Davidson reported that Glendale is on a program in which they televise their entire system every two to three years. He stated that this is a new program due to the new EPA regulations. Mayor Ridgeway pointed out that, in conjunction with the Orange County Sanitation District (OCSD), everyone has to provide additional information to their Sewer Master Plan. Mr. Davidson clarified that tonight's agenda item covers the first year of the four year program and will cover 50 miles of the 200 miles of City owned sewer main lines. Dolores Otting asked what will happen to the old camera if the new camera has glitches. Mayor Ridgeway indicated that the City will not be keeping the old camera and noted that it does not record. He added that the camera is almost worthless if it does not record. Barbara Johnson stated that she is a resident of the City and a formerly - elected School Board Trustee. She stated that page 7 of the Newport Coast pre- annexation agreement states that $7 million is supposed to be transferred into the building account, but asked where it is in the budget. Further, she asked where the $5 million is for the Newport Coast community center; where the reserve dollars are for the defense costs and adverse judgments in the Trenton Veches matter; and where the money is for the purchase of the Orange Julius building. She also asked how much the Newport Coast slope maintenance will cost and when the City will start paying these costs; what the true Newport Coast costs are to the City based on a 1.5% return on the $15 million paid to the City by IRWD versus the City's share of property taxes; what the ongoing costs are for the John Wayne Airport (JWA) consultants; what the costs are today for the airport attorneys per month and how long are those projected costs supposed to continue; and where in the budget is the money for the additional employees needed in General Services for Newport Coast's maintenance and water quality operations. Ms. Johnson continued by asking if the Fire Department budget takes into account that this is already fire season; where the Volume 55 - Page 229 City of Newport Beach Study Session Minutes June 25, 2002 INDEX $2.5 million federal grant money is for the Big Canyon Reservoir cover and what happens if the City does not receive the grant money; and why the City has an Economic Development Committee but not a Budget Committee. Ms. Johnson requested that the City reinstate a Budget Committee with resident representation. Regarding the $7 million and $5 million transfers, Mr. Bludau stated that no budget transfers are going to happen this year but they will be ongoing. He indicated that the City received $15 million from IRWD this year, will get another $5 million in two years, and another $5 million in four years. He added that it is unsure if a community center will be built in Newport Coast and indicated that this is for the Newport Coast residents to decide. Regarding the Orange Julius building, he stated that the building is no longer for sale. He reported that it would be another 12 months before the City knows what revenues it will receive from Newport Coast and that no property taxes have been received, except a portion of the property taxes received from the Fire District. He indicated that they heard two weeks ago that about 25 homes a month will be released by The Irvine Company and so those property taxes will be coming online at different times. Mr. Bludau reported that the budget contains $500,000 for airport consultants and is reflected in the Council portion of the budget. He agreed that it is fire season, but nothing extra is budgeted since it is always included. He indicated that he will try to address the other questions in time. Mayor Ridgeway requested that he also send copies of the response to Council. Council Member Heffernan asked if there is a budget reserve allocated for the Newport Coast slope maintenance. Mr. Danner stated that there is nothing included in the budget for that at this time since the cost is not known. He indicated that, once it is agreed to, the money would come out of the City's reserves, not from the IRWD money. He stated that the last number he heard was $250,000. Council Member Glover stated that, when she first came on Council, the City had a strong committee system and that it was seldom that an issue did not have a hearing. She indicated that it was decided, about four years ago, not to have the various committees. She stated that she chaired the Finance Committee, spent hours on the budget, and had consultants review all the positions and programs. She indicated that having a Budget Committee with representatives from the community was discussed four or six years ago, but a conclusion was never reached. She stated that she has mixed emotions about this because committees sometimes come in with numbers greater than what Council would recommend. She believed that the City had the strongest committee system in the County and noted that Council will be very different after the November election. She stated that she is not a strong advocate for either system and is not opposed to citizens being on a Budget Committee, but they also have to be as vigilant as Council. Mr. Bludau stated that the budget does not include money for every contingency. Further, it does not include money for slope maintenance even though the City knows it is coming. He clarified that this does not mean the public will not know how much it will cost because it will be placed on the regular agenda since Council will need to appropriate the money. He noted Volume 55 - Page 230 City of Newport Beach Study Session Minutes June 25, 2002 INDEX that a budget is just a best guess of the expenditures and revenues, and that the City will have unanticipated things happen as the year unfolds. Further, things will not get done that were anticipated. He stated that it is a changing document with a public process for when the document changes. Mayor Pro Tom Bromberg noted that, in the Police budget, there is a Lieutenant/Legal Advisor whose compensation package is $151,000 a year. He questioned the propriety of having a legal advisor in a police department of the City's size. Captain Henisey reported that Lt. Hyams serves as Lieutenant of the department, but his primary task is as a Legal Advisor who reviews everything from personnel investigations to department contractual obligations. He stated that he also supervises the Professional Standards Unit and participates on the California Peace Officers' Association (CPOA) to be aware of legal issues, court findings, and cases. He added that Lt. Hyams conducts training and provides legal bulletins to the entire department. He stated that he tested for the position and earned the rank of Lieutenant as any other person in the department would do and added that he also has a doctorate degree in psychology. He confirmed that his full -time job and offices are at the Police Department. Mr. Bludau noted that, if Lt. Hyams uses the entire 2,080 hours a year giving legal advice, the $151,000 equates to $72.50lhour as opposed to getting outside legal counsel. Mayor Pro Tem Bromberg stated that he only questions this because the City privatizes a lot of the individuals at the Police Department and the City has a City Attorney's office. He believed that the City would not be spending this amount if it was contracted out. He noted that departments like the Los Angeles Police Department and the Orange County Sheriffs Department have legal affairs offices while small departments generally do not. Capital Improvement Program (CIP) Public Works Director Badum reported that the CIP for 2002 -2003 is about $31.6 million for a little over 135 projects. He stated that the General Fund has about $3.4 million in CIP projects, of which about $1 million is for repairs and improvements to various City facilities, including City Hall, the Corporation Yard, the Police facility, recreational facilities, and public restrooms. He reported that there is about $500,000 in storm drain improvements that will supplement the paving project on Balboa and Newport Boulevards between 16th and 26ffi Streets. He noted that the area sidewalk, curb, and gutter program; alley replacements; and bikeway and parking lot improvements total about $650,000. He stated that there is an economic development project in Mariners Mile for $300,000 which includes the beautification of Coast Highway and various streets in the area. He noted that there is close to $800,000 for various park improvements and another $135,000 in software and computer enhancements that facilitates the functioning of City Hall and its departments. Mr. Badum reported that there is still $1.5 million from the Oil Spill Remediation Program that will be used for the Corona del Mar Beach improvements, Marine Center at Shellmaker Island, improvements to ocean safety operations, and ocean front walkway, lighting replacements, and beach access ways. Mr. Badum stated that there is about $2 million in the CDBG fund and the bulk of it will be going to the Balboa Village Phase II Project which includes Volume 55 - Page 231 City of Newport Beach Study Session Minutes June 25, 2002 INDEX Main Street and the ocean front walkways. Regarding the Tide and Submerged Land Fund, Mr. Badum reported that it includes about $1.3 million for the water quality programs, oil fill improvement program, Balboa Island bay front repairs, and Balboa Village community center design which will house a new Junior Lifeguard facility and community meeting rooms. He indicated that the Fire Department requested this. Mayor Ridgeway believed that the beach access walkways and the junior lifeguard building should be discussed at a joint study session since it needs community input prior to budgeting. Mr. Bludau stated that adding space to the Balboa restroom was discussed but it was too late to do. Mr. Badum added that they did not want to slow down the restroom replacement project, but there was discussion about trying to provide space for the junior lifeguards program. He stated that something will need to be done down the road and, while asking for money to look at designs, they will essentially be developing a concept which would involve a lot of public participation and Council input. He believed that a more permanent facility could be provided that also serves as a community building. He indicated that the current trailers are at the end of the pier, adjacent to the restrooms. Mayor Ridgeway noted that there was no previous public support. He asked if this is something that gets budgeted first and then gets public support. Mr. Bludau stated that the junior lifeguards program uses portable buildings during the summer and believed that they need a better facility to conduct lifeguard training. He indicated that normally a concept is created and budgeted to see if it goes anywhere. Mayor Ridgeway noted that Lifeguard Headquarters is located at the Newport Pier. Mr. Bludau reported that there are 1,200 junior lifeguards during the summer. Mayor Pro Tem Bromberg asked if this could be done for less than $115,000. Mr. Badum stated that they could come up with another number. Council Member Heffernan believed that it is amazing that 1,200 kids could be shuttled through the dilapidated structure. He added that he is in favor of doing something about it and noted that the City makes $400 per child from the program and there is a waiting list to join. He stated that the facility does not even have water. Mr. Badum stated that the Building Excise Tax Fund is significantly less this year than past years. He reported that $80,000 will be used to improve fire station diesel exhaust systems and $104,000 will be used to conduct security improvements and enhancements at the libraries. Mr. Badum reported that there is about $5.4 million in the Water Enterprise Fund, assuming the City gets $2.5 million in federal funding for the reservoir cover. He stated that the current funding level is $1.8 million. Council Member Heffernan believed that the City agreed to cover the reservoir whether federal funding is granted or not. Mr. Bludau indicated that this is one of staffs priorities. Mr. Danner reported that the Water Fund has almost $17 million in its reserves for projects like this. Council Member Heffernan believed that this was a public safety issue. Mr. Bludau stated that it is staffs intent to have the plans and specifications done regardless of where the funding comes from. He indicated that it takes a Volume 55 - Page 232 City of Newport Beach Study Session Minutes June 25, 2002 INDEX number of months to construct the cover to specification. Mr. Davidson reported that this is also being balanced with the water year to try to maximize the 75% groundwater pumping. Utilities Engineer Sinacori reported that a consultant has been onboard for about four years, the design should be completed around Christmas, and the funding situation will be clearer by then. He indicated that being in construction by the end of the fiscal year is dependent on the cover product, but believed it would be likely that work can be conducted at the end of next summer. He stated that the cover is an encumbrance and that a construction contract will be awarded for this by Council. He confirmed that $1.8 million is budgeted currently in the CIP and that the project costs $4.3 million for the cover and $800,000 for the disinfecting system. He added that reserves were set aside for the cover, independent of federal funding, in the event the City has to move forward with the cover on its own. He stated that this would need to come to Council for appropriation. Mr. Bludau clarified that all the money it would take to fund the cover has not been set aside because it would not be wise to do this and then request funding from the federal government. Mr. Danner stated that this is consistent with CIP projects and that Council Policy F -3 requires them to put aside reserves, specifically in the Water and Wastewater Fund, for future capital improvement projects. He reported that money has been set aside for a number of years in anticipation of covering the reservoir. Mayor Ridgeway stated that, if the City does not receive the federal funding, a budget amendment will be prepared for funding to come out of the reserves. Mr. Badum reported that about $350,000 is being proposed for master plan improvements to water mains and about $500,000 for water transmission main improvements in the Water Enterprise Fund. Mr. Badum reported that the Wastewater Enterprise Fund has about $750,000 in projects set aside for this fiscal year. He stated that $75,000 will be used for master plan sewer improvements, $150,000 for grease control, $300,000 for master plan sewer pump improvements, and $120,000 for the televised pipe inspection program. Mr. Badum reported that the balance for the projects will come from the cooperative projects which are projects that are funded from outside sources, like guest taxes, contributions, Measure M, and various federal and state programs. He stated that about $1.9 million will be used for the Newport Boulevard and Balboa Boulevard street rehabilitation between 16th and 26th Streets. He noted that the project includes storm drain improvements and pavement replacement. Further, the project will complete the City's effort to rehabilitate Balboa Boulevard. He reported that there is about $2.1 million in Gas Tax money that will go to various street projects for replacement and repairs. He added that there is about $5 million in contributions for various grants and about $1.9 million from the Circulation and Transportation Fund for various projects. He reported that the City expects to receive about $2 million from Measure M funds. Council Member Heffernan stated that he was told that placing a signal at San Miguel Drive and Spyglass is not in the budget and that people are considering installing a turnaround or roundabout at the intersection. Volume 55 - Page 233 City of Newport Beach Study Session Minutes June 25, 2002 INDEX Mr. Edmonston reported that there is money in the CIP for traffic signal improvements which include some improvement at the intersection of San Miguel Drive and Spyglass in the next fiscal year. He indicated that they have letters on file from people in the neighborhood who have asked them to look at alternative improvements, but they have not made a commitment about the method to be used. He stated that their intent is to look at every option. Council Member Heffernan believed that the signal is overdue considering the vicinity of the park, the steep incline on Spyglass, and the increased traffic on San Miguel. He stated that something needs to done in the 2002 -2003 fiscal year. Mr. Badum indicated that they try to start with a clean slate and sometimes alternatives get brought up which they need to look at. Mr. Badum stated that they are recommending using $300,000 from the Circulation and Transportation Fund for raised medians, in conjunction with the Corona del Mar Business Improvement District (BID) project. He indicated that this would be a good safety and aesthetic improvement to the area. He reported that they are working with CalTrans for permission to do the medians and to possibly have control over that portion of Coast Highway. He stated that they are waiting for a CalTrans report to find out what amount of money it would take and about the terms /conditions for the relinquishment. He noted that this would be brought back to Council. He reported that, even if the City does not have control of the project, they will still proceed with the projects and have more coordination with CalTrans. He stated that, doing these types of projects are very doable. Mr. Edmonston explained that they want to change the medians in the area from Iris to the Port Theater. He indicated that, with this budget, there will be additional areas that can be changed. Mr. Bludau clarified that there is $150,000 for street improvements and another $150,000 was added to the wish list. Mr. Badum stated that the total for the Corona del Mar BID project is $400,000. Council Member Heffernan stated that the reservoir cover issue should be discussed during a public hearing. He indicated that residents on Spyglass, in Seaview, and areas that overlook the reservoir are not accustomed to the idea of covering the reservoir. He believed that more input and education needs to take place. He added that renderings or something needs to be given to people. Mr. Bludau indicated that the CEQA process also needs to occur. Mayor Ridgeway noted that the front of the reservoir is dirt and asked if landscaping can be added. Council Member O'Neil stated that upgrading the footbridge on Goldenrod has been deferred for over two years. He indicated that it would be an $80,000 project and believed that there is a need to upgrade /refurbish the bridge and planting area. He noted that it is a historical landmark and a charming crossing area. He indicated that he already requested $25,000 for this and is now asking that it be increased another $55,000. Mayor Pro Tern Bromberg indicated that District 5 is in good shape and thanked Public Works and General Services for that. Volume 55 - Page 234 City of Newport Beach Study Session Minutes June 25, 2002 I Il �►` Council Member Glover indicated that, because of the cost of land in the City, people have been building rather than having boatyards on Mariners Mile. She believed that the boatyards add to the marine look and asked that the City look into leasing long term or purchasing the land from the start of Mariners Mile to the McDonalds so people can put up more boatyards. She noted that boat sales generate a lot of revenue for the City. She emphasized the importance of keeping that type of use on Mariners Mile. Further, she noted that there was talk about putting a walkway on the water side of Mariners Mile. She indicated that new constructions have dedicated walkways and requested funding between $25,000 to $50,000 for this. She added that the Harbor Commission and/or the Economic Development Committee should conduct a study on both the issues. She reported that both the items were in the Mariners Mile Design Framework and were supposed to be studied further. Mayor Ridgeway believed that a cantilever boardwalk from the Arches Bridge to the Balboa Bay Club should be a high priority for the City. He indicated that it is doable and some type of money should be allocated. Mr. Bludau believed that the walkway, whether cantilevered or not, should be a capital improvement feasibility study and that about $50,000 should be included in the wish list if Council desires. He indicated that someone needs to look at the individual properties and right - of -ways. Mayor Ridgeway noted that the City owns from the bulkhead out. He added that the Mariners Mile area is one of the few viable commercial areas the City has in which the public can come to the water. In response to Council Member Proctor's question, Assistant City Manager Kiff announced that water quality is included in the CIP, under the Clean Beaches Initiative Projects. He reported that one of the major projects for West Newport was approved by the technical committee for funding. He stated that the project includes circulation improvements and grates and filters in the storm drains, and that the City was given its second half of Phase II's $500,000. He noted that almost all of the money is going to West Newport. He confirmed that the amount of money that can be spent in a reasonable fashion to get results has been appropriated, assuming the circulation improvement project works. Mayor Ridgeway added that the OCSD will also be spending money in West Newport to divert the storm drain water from Coast Highway, at the bridge, into the sewer system. Mayor Ridgeway referenced page 44 of the CIP (Marine Education Facility at Shellmaker Island) and noted that it appears that the City is allocating the majority of the money when it is supposed to be a cooperative effort. Mr. Kiff explained that there is no fund source showing for the $6.5 million construction cost since the fund sources are guaranteed through agreements with other agencies. He reported that the Department of Fish and Game has assured the City $1.1 million; the County has assured $1.4 million for the water quality lab at the Center; and UC Irvine has assured $500,000. Mayor Ridgeway recommended that footnotes be included in the CIP budget to explain the funding sources since they are significant. Mr. Kiff indicated that the City's $500,000 portion will come from American Trader Oil Spill money. He added that it was discussed that the City's portion be limited to $500,000, but will run some of the tidepool programs through the Center to help with staffing. Further, the City may also help with the custodial maintenance once built. Volume 55 - Page 235 City of Newport Beach Study Session Minutes June 25, 2002 INDEX Regarding the Balboa Village Community Center (page 57), Mayor Ridgeway stated that the name may want to be changed to the Balboa Village Junior Lifeguard Station. He indicated that there are facilities now, like at the American Legion Hall, that are available for meetings. Further, there is a clause in their lease that makes the facility available to the City in almost perpetuity. He believed that, if the new facility is redundant of what is at the Newport Pier, it would raise questions as to why this is going to be done. In response to Mayor Ridgeway's question regarding the Urban Forest Inventory (page 28), General Services Director Niederhaus explained that there is $10,000 in the current budget that will be carried over and another $10,000 was added to the CIP. He stated that the balance of $60,000, which makes a total of $80,000, is on the checklist for approval this evening. He indicated that the full inventory of trees in the City will be completed by fall. Mayor Ridgeway announced that the roads have been improved on the peninsula all the way to 16th Street and that, by the end of the year, improvements will take place from 16th Street to 26th Street. He indicated that the comments he has received about the road improvements have been tremendous. Tom Hyans, President of the Central Newport Beach Community Association, stated that the residents and property owners have long been supportive of any effort to keep the wide, sandy beach in the central peninsula free of more concrete and asphalt. He thanked Council and staff for contributing to the improvements that are seen in Balboa Village and along Balboa Boulevard because they have spent years pursuing the planning and implementation projects that are now winding down. He also thanked whoever was in charge of the American Trader because, without the oil spill money, the piers would not have been rehabilitated; lifeguard headquarters would not have communications, video, emergency power, breakwater protection, and a new rescue boat; and there would not be any beach restroom improvements, ocean front walkways, lighting improvements, and beach access walkways. He noted that the evidence of the spill is gone but the results will last. Mr. Hyans referenced the two year program to build the Balboa Village Community Center (page 57) which would be a 5,000 square foot building at a cost of nearly $900,000. He highlighted the amenities and stated that it should be deferred or cancelled entirely. He pointed out that a study is underway to evaluate the need for a City facilities expansion. He believed that the project is unnecessary since the lifeguards have a facility at the Newport Pier that initially started with the same premise. He asked why the residents have to sacrifice rapidly diminishing and treasured assets for this type of extravagance. Dolores Otting believed that one of the newsletters indicated that the reservoir cover was needed to meet federal and state guidelines for the water supply. Further, a Doily Pilot article stated that bleach is added to the water when there a problem. She reported that bleach is a known carcinogen and that Orange County has the highest rate of breast cancer in the country this year. She stated that she had breast cancer and that she Volume 55 - Page 236 City of Newport Beach Study Session Minutes June 25, 2002 INDEX does not want anyone to go through it. She believed that the City needs to take every precaution to cover the water and put in less bleach to make it safer to bathe and drink. Ms. Otting reported that she had trouble getting onto the City's website and requested that someone look into this. She also reported that Cox television does not televise the study sessions on time and asked if the City could get a copy of the meetings and replay it properly since it is capable of putting together various City - related programs. She noted that the School Board meetings are not televised anymore since their meetings are the same night as Council. She stated that their budget is larger than the City's and no one knows what is going on. She believed that it is more important that the community get involved with what is going on with the budgets, rather than show community shows. Barbara Johnson noted that the State has a $24 billion deficit. She believed that the wish list includes some good ideas; however, asked what will be cut from the budget in order to do the extra programs and projects. Mr. Bludau stated that this was discussed at the first study session and reported that the City has already subtracted $2.7 million from anticipated revenues that it will not be getting from the State. Mayor Ridgeway stated that the City, like all cities, is looking at Sacramento to try to prevent the raids on local revenues. Mr. Bludau stated that nothing will have to be cut out to fund the wish list. Mr. Danner reported that, as the budget is predicted at this point, the City has money that is in an amount over the required reserve requirements. He also confirmed that nothing would need to be cut out at this point. Council Member Heffernan reported that Council started looking at this budget almost a month ago and indicated that there has been more rumbling out of Sacramento. He asked Mr. Danner if he is still confident that the amount that is set aside for shortfalls or take -backs from Sacramento is adequate. Mr. Danner believed that it is and that the City has been very judicial in eliminating that amount from the budget. He indicated that the City is one of few cities that have done this. Council Member Heffernan asked if the City is reserving what is consistent with Council Policy. Mr. Danner reported that the reserves are fully funded and that funds have been included in the budget for every known anticipated expenditure. In response to Council Member Heffernan's questions regarding the retreat, Mr. Danner indicated that the major concern at the retreat was setting aside money for maintenance, repair, and replacement of City facilities. He reported that a study is being conducted to see what the numbers would be. He stated that they will come back to Council on this. He confirmed that all the retirements, liabilities, workers compensations, and compensated absences are being funded on an ongoing basis in amounts that are consistent with Council Policy and that the City is doing a good job of funding these. Mayor Ridgeway added that, when the retreat occurred, Newport Coast was not formally annexed. He indicated that the annexation has changed some of the budget numbers. Mayor Pro Tem Bromberg stated that he serves on the Finance Committee with Council Member Glover and Council Member Heffernan who is the Volume 55 - Page 237 City of Newport Beach Study Session Minutes June 25, 2002 INDEX chair. He indicated that they discussed these issues in depth with Mr. Danner and Deputy Administrative Services Director Kurtz who reviewed the City reserves. He reported that, when the County went through its bankruptcy, the City faired well compared to other cities because of the structure of its finances. He stated that the City also recovered well and has since made adjustments. He indicated that the reserves are very healthy and are used conservatively. He reiterated that very few cities in the County have pulled money out of its budget in the event of a shortfall from the State. PUBLIC COMMENTS — None. ADJOURNMENT — 5:50 p.m. The agenda for the Study Session was posted on June 19, 2002, at 3:15 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary c� Mayor J City Clerk O* NEWOON � m u ���FOnNM Volume 55 - Page 238