Loading...
HomeMy WebLinkAbout06/10/2003 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session June 10, 2003 - 4:00 p.m. ROLL CALL Present: Heffernan, Proctor, Ridgeway, Adams (arrived at 4:15 p.m.), Webb, Nichols, Mayor Bromberg Absent: None CURRENT BUSINESS 1. 2. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Webb stated that he reviewed the traffic study proposal for Item No. 10, Professional Services Agreement to Prepare an Environmental Impact Report (EIR) for the St. Andrews Church Project, and that it looks like the proposal is expected to be completed in four to six weeks, upon authorization. He stated that this would mean that the traffic studies would be conducted during the summer and wouldn't reflect the high school traffic in conjunction with the church traffic. He announced that he would be removing the item from the evening agenda to discuss the matter and possibly revise the proposal. Public Works Director Badum stated that some counts are available from the neighborhood traffic plan, but probably not in the detail needed. Planning Director Temple added that upon Council Member Webb bringing up the issue, the traffic consultant has been authorized to begin the detailed traffic counts needed prior to the end of the school year, and that any gaps in information would have to be filled in during the following school year. She stated that City Council action at the evening meeting would provide the authorization needed to officially begin the traffic studies. In regard to Item No. 3, Councilmanic Re- districting, Council Member Heffernan confirmed with City Attorney Burnham that if the redistricting map is changed from what was introduced at the City Council meeting of May 27, 2003, that the item would have to be reintroduced and passed to second reading at the June 24, 2003, meeting. 2003 -04 BUDGET REVIEW - REVIEW OF DEPARTMENTS' BUDGETS City Manager Bludau stated that the Study Sessions on May 13 and May 27, 2003, were dedicated to reviewing the upcoming budget. The current meeting would continue the review of the department budgets. Fire Department Using a PowerPoint presentation, Fire Chief Riley displayed a chart showing a summary of the Fire Department's budget for the current fiscal year and the upcoming fiscal year. He noted that the total increase for the upcoming year is Volume 56 - Page 189 � II►11711:1 2003 -04 Budget Review (40) City of Newport Beach Study Session Minutes June 10, 2003 INDEX 10.34 %, with a 12.1% increase in salaries as a result of contractual salary agreements and the increase in employer costs for the Public Employees Retirement System (PERS). He displayed the six budgetary divisions in the department, which included administration, fire operations, fire prevention, emergency medical services, training and education, and lifeguard operations. He noted that fire operations accounts for 66.98% of the total budget. Additionally, the chart showed that there are 148 full -time employees in the department plus 32.6 full-time equivalents. The employee count was also broken down by division. Council Member Heffernan asked how many employees are being added in the 2003 -04 fiscal year and how the services for Newport Coast are being handled. Fire Chief Riley stated that nine positions were added to fire operations in the 2002 -03 fiscal year to staff the fire station in Newport Coast and one was added during the year to work on fuel modification activities. He stated that one position is being added in the 2003 -04 fiscal year to the training division. Fire Chief Riley stated that the significant revenue generator for the Fire Department is the paramedic program. He stated that money is also received from the junior lifeguard program, the public safety augmentation fund and fire prevention fees and fines. Fire Chief Riley stated that a significant program change for the Fire Department is the new direction being taken in training. He explained that the City has withdrawn from the Central Net Operations Authority training program, and that these resources have been redirected to a new department assistant for the training and education division, and the development of a training area at the Big Canyon Reservoir. Fire Chief Riley stated that significant program issues that the department will continue to work on include the emphasis on disaster preparedness, the design and construction of a fire station in Santa Ana Heights, and participation in the Corona del Mar main beach improvements. City Manager Bludau added that the contractual agreement with the fire safety personnel has resulted in a 2% salary increase in June 2003 and a 3% increase in January 2004. He stated that the remainder of the increase is due to PERS rate increases. Council Member Heffernan noted that the figures presented for salaries differ from those in the Resource Allocation Plan (RAP). Fire Chief Riley explained that his figure represents beginning budget and the RAP represents actual. Council Member Heffernan agreed that it's important to note that the salary increase is largely due to the PERS increase. Mayor Pro Tern Ridgeway asked how much the PERS contribution amounts equal. Referring to the Budget Detail, Fire Chief Riley stated that the employer contribution for the fire operations division has increased from approximately $450,000 in the 2001 -02 fiscal year to over $1 million in the 2002 -03 fiscal year to $1.6 million in the 2003 -04 fiscal year. Mayor Pro Tern Ridgeway asked if the same ratio applies to all employees in the City. City Manager Bludau stated that the rates for public safety are different than those for miscellaneous Volume 56 - Page 190 City of Newport Beach Study Session Minutes June 10, 2003 INDEX employees. Administrative bervices Director Danner turther explained that the contracts with PERS are different for the two types of employees and the assets are kept separate. He stated that the miscellaneous employee account has a surplus, so the increase will not be seen until the 2004 -05 fiscal year. He added that it will increase from zero to 3 %. Mayor Pro Tern Ridgeway noted that this will equal approximately $900,000. Administrative Services Director Danner further noted that the public safety amount will increase from 17% to 29 %. Dolores Otting stated that the City spent approximately $500,000 with the City of Anaheim on a joint powers authority to upgrade the communication system. She stated that she disagreed with the expenditure at the time and couldn't understand why the City wouldn't enter into such an agreement with the City of Costa Mesa instead. She asked how much the Fire Department spends on training with the City of Costa Mesa compared with what would be spent on a training facility at the Big Canyon Reservoir. She stated that it is inappropriate to spend money needlessly or to use the reservoir area for anything other than the City's water supply. Mayor Bromberg requested that City Manager Bludau respond to Ms. Otting's comments. Planning Department Using a PowerPoint presentation, Planning Director Temple stated the Planning Department represents approximately 1.5% of the overall general fund expenditures. She stated that for the 2003 -04 fiscal year, salaries will be decreasing slightly, maintenance and operations will decrease substantially, and capital outlay and the Community Development Block Grant (CDBG) fund will also go down. She explained that there were a couple of significant budget amendments during the 2002 -03 fiscal year that accounted for higher than budgeted expenditures in maintenance and operations, and that these were for the general plan update project and the Local Coastal Program (LCP) certification project. Planning Director Temple stated that there are a total of 18 employees in the department, which will remain constant even after the reorganization for water quality enforcement. Planning /administration is the largest group in the department and accounts for over 72% of the department's expenditures. She displayed a list of the functions handled by planning /administration. Planning Director Temple stated that the economic development division represents approximately 20% of the department total, and that the community development block grant division includes no budgeted staff, but provides the funds for the CDBG administration, social services grant, fair housing and code enforcement. Planning Director Temple stated that the department's workload indicators show that since 1990, the department has processed an average of 230 discretionary cases per year. She explained that these are the applications that go to the Planning Commission, the Modifications Committee or to staff for discretionary approval. She pointed out that since 1995, the department has averaged 295 cases per year. Plan checks have also increased by 20% in the Volume 56 - Page 191 City of Newport Beach Study Session Minutes June 10, 2003 INDEX past year. Planning Director Temple stated that the development review and plan review fees have been adjusted, which has increased cost recovery significantly. Planning Director Temple stated that a significant expenditure for the Planning Department is the general plan update. Other significant projects include the certification of the local coastal program, the preparation of a comprehensive sign code update, the activities necessary for the implementation of the housing element and the commercial district revitalization projects. Building Department Building Director Elbettar stated that the total Building Department budget is $2,746,009. The department is comprised of three divisions, which include administration, inspections, and plan checks and permits. There are 26 full - time employees in the department and 2 full -time equivalents. No new positions are proposed for the 2003 -04 fiscal year. Council Member Heffernan asked if the department can handle the workload increases without adding new employees. Building Department Elbettar stated that it's a problem of space limitation, which means the department has to rely heavily on outside consultants to perform overflow plan check and review services. He stated that this is reflected in the department's 8080 account for professional and technical services, and confirmed that the community does not feel the difference in fees, but often feels the difference in the quality of service. He added that the goal to achieve a four -week turnaround of 90% of the plan checks placed more pressure on staff and means that more projects are being sent out. Council Member Proctor asked if there would be a cost savings to having the needed facilities and adding employees, rather than having outside consultants perform the work. Building Director Elbettar stated that sending plans out is not cost effective or efficient, since City staff still has to handle the plans and answer questions. City Manager Bludau added that more complaints are received from plan checks performed by the outside consultants than by those done in- house. Building Director Elbettar confirmed that individuals often request their plans to be checked in- house, even if it means that the process might take longer. Building Director Elbettar displayed a revenue worksheet for the department, comparing the fiscal years back to 1999 -2000, and noted that total revenue has been exceeding $3 million with the exception of the 2002 -03 fiscal year. City Manager Bludau noted that this is without major commercial projects in the last few years. Building Director Elbettar confirmed that the department's workload over the past three years has been primarily for residential construction. He also displayed a graph depicting the department's revenue since the 1994 -95 fiscal year, a chart showing the additional expenditures for outside consultants and the department's monthly revenue report for April, 2003. Lastly, he displayed a chart showing construction valuation since 1996, which has been fairly consistent at approximately $200 million over the past few years. He confirmed that it is another indicator that although plan submittals have Volume 56 - Page 192 City of Newport Beach Study Session Minutes June 10, 2003 INDEX increased, valuation has remained consistent, which is a rest in commercial projects and the increase in residential projects. Council Member Heffernan asked if there had been any discussion about moving the building permit approval process for Newport Coast from the County to the City. City Manager Bludau stated that the County would prefer to keep the process with the County. City Manager Bludau and Building Director Elbettar stated that temporary facilities and outside consultants would also have to be looked at if the City were to take over the process. Building Director Elbettar noted that it will only be a three to four year spike in activity, which would be difficult to staff temporarily. Council Member Heffernan asked how larger commercial projects will be handled in the future. Building Director Elbettar stated that the inspections can be handled with current staffing, but the plan checks for larger projects would be handled by outside consultants. He added that space constraints do limit the City's ability to provide the services desired. Council Member Heffernan expressed his concern for the constraints and the affect it might have on the business community. City Manager Bludau agreed that additional space would provide the opportunity for additional staffing and a decrease in the use of outside consultants. Mayor Pro Tem Ridgeway added that he has seen the frustrations of the citizens trying to get building permits. General Services Department General Services Director Niederhaus stated that the two major goals for the department for the upcoming fiscal year are to improve water quality and meet all public service challenges. He stated that the department's general fund budget is increasing from approximately $15.9 million to $16.4 million, and noted that this is with the reduction of two staff members. He explained that the increase is due to annexation work, higher maintenance requirements and work in the Balboa Village area. General Services Director Niederhaus noted the significant decreases in the capital improvement program and the internal services fund. General Services Director Niederhaus displayed the department's organization chart, and noted that there are a total of eight divisions and 127 positions. He stated that the two positions that are being eliminated for the 2003 -04 fiscal year are from the operations support and refuse divisions. General Services Director Niederhaus displayed a pie chart of the cost distribution for the department, and lists of expenditures by division for professional and technical services, overtime and special department expenses. He highlighted some of the department's other major expenditures, which included water and utility expenses, and equipment maintenance costs. General Services Director Niederhaus stated that the department's revenue sources include the recycling service fee and solid waste franchise fees from the solid waste haulers. He stated that the grants applied for include the summer litter abatement and zero emission vehicle incentive programs. General Services Director Niederhaus displayed a chart showing the details of the equipment maintenance and replacement fund for the 2003 -04 fiscal year. Volume 56 - Page 193 City of Newport Beach Study Session Minutes June 10, 2003 INDEX He noted that it's the smallest budget he's ever worked with, and that there are only 27 new vehicles being proposed compared to the usual 40 to 42 in previous years. He added that, of the 27 new vehicles, 18 are for public safety. General Services Director Niederhaus stated that the challenges for the department include the purchase and replacement of alternative fueled vehicles. He stated that the Air Quality Management District (AQMD) fund balance was also decreased and that this funds the City's electric vehicle program. The greatest issue, however, could be the series of rules that were passed by AQMD about three years ago. General Services Director Niederhaus explained that they require the City to replace certain vehicles with alternative fueled vehicles, which are more expensive and require special fueling stations. These fueling stations aren't conveniently located and are expensive to build. General Services Director Niederhaus stated that the clean water projects scheduled for the 2003 -04 fiscal year include alley sweeping, storm drain and V -ditch cleaning, and enforcement response to the new water quality code enforcement division. In response to an earlier question, General Services Director Niederhaus stated that a $635,000 capital improvement project for the 2003 -04 fiscal year will design and replace the Newport Terrace landfill system. Council Member Webb asked if the vehicle replacement program was completed as budgeted for the current fiscal year. General Services Director Niederhaus stated that all vehicles were purchased with the exception of a paramedic van, which was carried over to the 2003 -04 fiscal year. Mayor Pro Tern Ridgeway asked if the remediation at Newport Place is a shared expense. General Services Director Niederhaus stated that it is, but that there may be funding difficulties on the part of the association. Dolores Otting asked how much the PERS increase is for General Services Department employees. She additionally stated that the AQMD has grants available to build alternative fuel stations. Ms. Otting also expressed her disagreement with City vehicles being driven to Stanton, when the City has its own transfer station. Laura Dietz stated that there should be some type of external audit procedure to insure that the City is receiving the correct solid waste franchise fees. She also stated that building an alternative fuel station should be carefully considered, given that there is a shortage of natural gas. Madelene Arakelian stated that the City's solid waste haulers pay the highest franchise fee in the County. She disagreed with an increase being considered. Based on the earlier comment by Ms. Dietz, City Manager Bludau stated that the City does conduct audits of the solid waste haulers on a regular basis. Library Services Library Services Director Katsouleas stated that the library strives to be the cultural, educational and informational heart of Newport Beach. She stated Volume 56 - Page 194 City of Newport Beach Study Session Minutes June 10, 2003 INDEX that the specific goals for the department for the 2003 -04 fiscal year include continuing to prepare for the new Mariners Library, focusing on customer service, and developing the branches. She stated that the total budget for the department is basically status quo, but two part -time positions are being added to the central library. She displayed a list of the maintenance and operation expenditures by division and a pie chart of the total major expenditures for the library. She noted that 54% of the expenditures are for library materials. Library Services Director Katsouleas also displayed a graph showing revenue comparisons for the 2002 -03 and the 2003 -04 fiscal years. She specifically noted the State funds that the City doesn't expect to receive in the 2003 -04 fiscal year. Library Services Director Katsouleas also displayed a list of the major expenditures for arts and cultural services, as well as a pie chart with the breakdown of the maintenance and operation expenditures. She noted that approximately 54% of the expenditures are for the grants that are given to the art organizations in the community. Recreation & Senior Services Recreation & Senior Services Director Knight stated that the department's budget is fairly status quo, with a slight increase for program costs. The department has 20 full -time employees, 48 part -time employees and 65 contract class instructors. The three divisions are the administrative division, the recreation division and the senior services division. She stated that the recreation division oversees the classes, aquatic and sports programs, and the special events permitting process, and that the estimated revenue for the division for the 2003 -04 fiscal year is approximately $1.6 million, which represents 71% of the total expenses for the department. Recreation & Senior Services Director Knight displayed a list of some of the services of the senior services division and the estimated revenue for 2003 -04. She noted that the revenue generated by the division is less than for the recreation division because most of the classes are offered at no fee. Recreation & Senior Services Director Knight stated that the goals for the department include the opening of the Bonita Canyon Sports Park, working on the Mariners Park reconstruction and other future park developments, expanding an emphasis on teen programs, increasing marketing, establishing a joint use agreement with the Newport -Mesa Unified School District for facilities use, and increasing the intergenerational, health and wellness programs at the senior center. Public Works Department Public Works Director Badum stated that the department's 2003 -04 budget is relatively the same as the current year's budget, but the capital improvement program has been decreased. He stated that the department is comprised of three divisions and includes administration, engineering, and transportation and development services. The total department budget is approximately $3.8 million. Public Works Director Badum stated that due to the many recent retirements in the department, a minor reorganization has taken place. He Volume 56 - Page 195 City of Newport Beach Study Session Minutes June 10, 2003 INDEX explained that some of the administrative and GIS functions have been consolidated, the City surveyor position has been upgraded, a survey technician position has been temporarily vacated, and the plan check function was reorganized. Public Works Director Badum stated that the total revenue for the department is $2.5 million, with $2.1 million of this coming from parking meter collections. He stated that the department's goal is to try to take care of the City's infrastructure before it becomes a problem. He displayed a graph showing the capital improvement expenditures since 1961. Council Member Webb asked if the department has all of its positions filled. Public Works Director Badum stated that there is one civil engineering position, two junior engineering positions and one engineering technician position that are currently vacant. Council Member Webb asked if the City would have to rely on outside contractors for inspection services of the capital improvement projects. Public Works Director Badum stated that it is hoped that the use of outside contractors will be kept to a minimum. He noted that the reduction in projects has given staff the opportunity to regroup. Mayor Pro Tern Ridgeway noted that Phase III of the Balboa Village project is not included in the 2003 -04 capital improvement program, and suggested that it be included in the 2004 -05 budget. He requested that the methane mitigation at the A Street pump station also be considered. Utilities Department Utilities Director Davidson stated that the department is comprised of four divisions, which include electrical, oil and gas, water, and wastewater. He stated that the electrical division is funded by the general fund, and the other divisions are funded by revenues. He displayed a chart showing the department's total operating budget and noted that 5.2% of the increase is due to a shift in maintenance programs from the capital improvement program to operating budgets. Utilities Director Davidson further noted that salaries and benefits total approximately $4.5 million, and maintenance and operations total approximately $13.7 million. He stated that one position is being added to perform video inspections of the City's sewer lines. Utilities Director Davidson displayed the operating budgets of the divisions. He also displayed key personnel changes, large expenditures, operational changes, and revenues or fees collected for each of the divisions. Overall Budget Mayor Bromberg complimented the budget process and the presentations. Council Member Heffernan asked if a projection of the impact of the State's budget had been considered in the City's proposed budget. Administrative Services Director Danner stated that staff anticipated that the State's budget would have an impact on the City's budget and for the second year in a row has eliminated the Vehicle License Fee (VLF) from the revenue projections. Council Member Heffernan confirmed that the proposed budget does not need to be Volume 56 - Page 196 City of Newport Beach Study Session Minutes June 10, 2003 updated further. INDEX Mayor Bromberg stated that earlier in the day, he spoke to State Senator Johnson and State Assemblyman Campbell and expressed the City's concern for its potential loss of $1.2 million. City Manager Bludau added that the loss could end up being an ongoing loss. Council Member Webb asked when items could be added to the supplemental checklist. Mayor Bromberg stated that it could be done at any time prior to the adoption of the budget at the City Council meeting of June 24, 2003. PUBLIC COMMENTS John Blom, representing the Corona del Mar Business Improvement District (BID), requested that the City Council support the items in the budget that will continue the implementation of the Corona del Mar Vision 2004 Plan. He stated that the majority of the monies are for median and crosswalk improvements. The funds would be used to finish Coast Highway, and would benefit traffic flow and improved pedestrian safety. Mr. Blom stated that in addition to the amount being rolled over from the current fiscal year, the BID is requesting an additional $180,000. He noted that the BID will contribute $120,000 to complete the medians. Mr. Blom also requested that the City match the BID's contribution of $20,000 for the Corona del Mar centennial. Mayor Pro Tem Ridgeway asked how much is being carried over for the medians from the current year's budget. Public Works Director Badum stated that it is just under $400,000 for the medians and the crosswalks. Mayor Pro Tern Ridgeway confirmed with Mr. Blom that the BID is requesting additional funds, in addition to the carryover amount. Council Member Nichols confirmed with Mr. Blom that the carryover is approximately $261,000 for the medians plus $71,000 for the sidewalks, and that the BID is requesting an additional $180,000. Dolores Otting stated that Assistant City Manager Wood portrayed her at a Youth City Council Meeting a couple months ago. She stated that she requested Assistant City Manager Wood to pull that portion from the video tape, but that it wasn't done. Ms. Otting stated that Assistant City Manager Wood displayed poor judgment by portraying her. Council Member Heffernan requested that the City formally respond to the matter. Mayor Bromberg stated that he was present at the mock meeting and that nobody was made a fool of. ADJOURNMENT — at 6:00 p.m. *tt *:rx,r,rtx:r *xxa�:r:rxxrxra x xs:r:rt* Volume 56 - Page 197 City of Newport Beach Study Session Minutes June 10, 2003 The agenda for the Study Session was posted on June 4, 2003, at 2:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. gity Clerk n' (� �OIJ- -AZ,..e--r Recording Set, etary Volume 56 - Page 198 INDEX