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HomeMy WebLinkAbout06/22/2004 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session June 22, 2004 - 4:00 p.m. Present: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols (arrived at 4:10 p.m.), Mayor Ridgeway Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Webb referred to Item No. 7, Recycling Service Fee, and stated that he doesn't understand why the cost of living increase is reported as being 2.7% but the recycling fee is being increased by 6.7 %. City Manager Bludau stated that there are more components that go into making up the rate increase than just the contractor's fee. He added that the annexation of Newport Coast also contributed to the rate being increased because the residents in Newport Coast don't pay for recycling. Mayor Pro Tem Adams referred to Item No. 15, Street Light Replacement Program, and asked what kind of standards would be put in. Public Works Director Badum stated that cobra head lights would be used, except in Shorecliffs where a retrofit of the existing teardrop lights would be done. Additionally, he confirmed that the homeowners associations in Cameo reviewed the project. Council Member Heffernan referred to Item No. S39, Newport Coast Community Center, and asked if the $550,000 for architectural services was for an $8.7 million project or for a project that would cost less than that. City Manager Bludau stated that it's a $7 million project and includes the architectural fees. He added that the architect would be directed to design a building that could be completed for $7 million total. Council Member Rosansky asked if a library would be included in the design. Council Member Heffernan stated that the staff report indicates that the architect would be directed to include a library in the design and it will be up to the Newport Coast residents to determine if everything can be paid for. 2. BUDGET — DEPARTMENT PRESENTATIONS. Public Works Department Using a PowerPoint presentation, Public Works Director Badum listed the goals of the Public Works Department, which included the implementation of the Capital Improvement Program (CIP), meeting the current and future needs of infrastructure, services and resources for citizens and visitors, and helping Volume 56 - Page 1000 INDEX (100 -2004) City of Newport Beach Study Session Minutes June 22, 2004 INDEX residents and businesses achieve their goals while maintaining quality public infrastructure. He displayed the proposed budget for the department for the 2004 -05 fiscal year compared with the 2003 -04 budget. The annual budget totals approximately $4 million for both years and staff positions are remaining the same at 35.75 Full-Time Equivalent (FTE). The CIP is being reduced from approximately $30 million to $24.4 million. The Public Works Department has three divisions, which include the administrative, engineering and transportation divisions. He displayed a breakdown of the budget by division. Public Works Director Badum listed the major tasks of the administrative division and stated that the key focus for the 2004 -05 fiscal year would be on records management. He listed the major tasks of the engineering division and stated that contract employees will continue to be used. The major tasks of the transportation and development division were also listed. He noted that the only major change in the program for the 2004 -05 fiscal year would be an increase in signal maintenance costs due to prevailing wage and inflationary increases. Public Works Director Badum stated that revenues for the department would remain the same at $2.5 million. Mayor Pro Tem Adams stated that projects may be identified through the Corona del Mar High School traffic task force, and that funding for these and the costs associated with continuing the task force are not included in the budget. City Manager Bludau confirmed that Mayor Pro Tem Adams would like to include these costs on the supplemental list. Mayor Pro Tem Adams requested that the Public Works Director calculate an estimated cost. Utilities Department Utilities Director Davidson acknowledged Utilities Operations Managers Antista and Burt, and Administrative Manager Deutsch. Using a PowerPoint presentation, he stated that the mission statement of the department is to provide quality, cost effective utility services to the community of Newport Beach. He displayed the department's budget for the 2003 -04 and 2004 -05 fiscal years, and stated that the department consists of four divisions, which include the electrical, oil and gas, water and wastewater divisions. The electrical division maintains 6,000 streetlights and the City's general building electrical systems. The oil and gas division operates sixteen oil wells, and the water division maintains and operates approximately 200 miles of water mains, five pump stations and three reservoirs. The wastewater division maintains and operates approximately twenty pump stations and approximately 200 miles of sewer mains. Utilities Director Davidson noted that the total 2004 -05 fiscal year budget for the department is approximately $19.2 million, which reflects a 5.2% increase. He noted that a new employee is being requested on the supplemental list. Of the 5.2% increase, 1.6% is for salary and benefits and the remainder is for water purchases. Utilities Director Davidson displayed the 2003 -04 and 2004 -05 budgets and the major components of the electrical division. The large expenditures of the division include the power needed for the streetlights. The division collects no revenue. Utilities Director Davidson then displayed the budget for the oil and gas division, and noted that the major expenditures of the division include the costs of the contract operator and energy needed for the oil wells, and the royalties and regulatory fees. The division is partly funded by the sale of oil and Volume 56 - Page 1001 �.4 } City of Newport Beach Study Session Minutes June 22, 2004 ISL4101 gas. He noted the increase in revenue due to the higher prices for oil, which were at $18 per barrel in January of 2004 and are currently at $30 per barrel. Council Member Webb asked how the injection program to improve production was working. Utilities Director Davidson stated that it's still a pilot program using existing water and wastewater, and that another source of water is needed for additional injections into other zones. Council Member Webb asked if the production had increased at the existing well. Utilities Director Davidson stated that there have been no measurable increases and that additional water is needed. Utilities Director Davidson displayed the budget for the water division and noted that 75% of the budget is for maintenance and operations. He stated that it is being recommended to add one new water production operator position. The large expenditures of the division include energy from Southern California Edison to run the water pumping plants, and water purchases. Council Member Nichols asked if the water purchases were for water flooding. Utilities Director Davidson responded in the negative and clarified that it's for domestic drinking water. Utilities Director Davidson stated that large expenditures of the water division also include City service charges. He noted that an operational change in the division for the 2004 -05 fiscal year is a decrease in the pumping allowance out of the groundwater basin, which will mean that more imported water will need to be purchased at a higher price. The price of groundwater is also increasing. Utilities Director Davidson stated that the new position that is being recommended is needed to properly maintain and operate the reservoir cover in compliance with the State Health Department. The position will also perform daily inspections and reviews, weekly maintenance and other functions. Council Member Nichols asked if the water purchases included the water needed for watering plants. Utilities Director Davidson responded in the affirmative. Council Member Nichols asked if the water pumped from the groundwater basin is used for drinking. Utilities Director Davidson responded in the affirmative and stated that the wells are located in Fountain Valley. Utilities Director Davidson listed the revenue sources for the water division. He then displayed the budget for the wastewater division. He stated that the large expenditures of the division include payments to the internal service fund for equipment maintenance and replacement. Council Member Webb noted the City's new water quality efforts and the cleaning of hazardous waste spills, and asked how often the Utilities Department is asked to respond. Manager Burt stated that the department's crews are called out on a fairly regular basis. Council Member Webb asked if the available equipment and personnel were sufficient to meet the new water quality requirements. Manager Burt responded in the affirmative and stated that a vacuum unit that will be mounted on one of the new trucks, the Youth v. Employment Program employees (YEPs) and the cross training that is done in the department will all help. Council Member Webb acknowledged the efforts of the department. Volume 56 - Page 1002 City of Newport Beach Study Session Minutes June 22, 2004 Utilities Director Davidson stated that another large expenditure of the wastewater division includes the payments for professional services, and that an operational change for the division will be the increase in tree root foaming in an effort to reduce sewer spills. Mayor Ridgeway confirmed that no new employees were proposed for the wastewater division. Utilities Director Davidson listed the revenue sources for the wastewater division. Additional Budgets Using a PowerPoint presentation, Administrative Services Director Danner stated that the City's budget includes several other budgets that aren't applicable to any single department's budget. These include the workers compensation and general liability insurance funds, compensated absences fund, retiree insurance fund, various police grants, an Air Quality Management District (AQMD) fund, environmental liability and the Ackerman Trust fund. Administrative Services Director Danner stated that workers compensation is estimated to be lower in the 2004 -05 fiscal year. In response to Mayor Ridgeway's question, he stated that the estimate is based on historical and trend information. Administrative Services Director Danner stated that the general liability fund is also estimated to be lower in the 2004 -05 fiscal year, and is also based on historical and trend information. He stated that the compensated absences fund totals $1.2 million and represents the cost of paying out excessive leave hours to employees when they retire. The retiree insurance fund provides partial medical coverage for retirees and totals approximately $1.2 million. Administrative Services Director Danner stated that the narcotics asset forfeiture fund, supplemental law enforcement service fund and local law enforcement grant fund are miscellaneous grants associated with the Police Department. The AQMD fund is money received from the State and is used primarily for subsidizing the cost of the City's electric vehicles. The environmental liability fund is money received from the franchised haulers and is used for environmental liability insurance. Lastly, the Ackerman Fund is money generated from sale of the Ackerman property and is used for scholarships and library expenditures. Mayor Ridgeway confirmed that the expenditures are made from the interest on the money only. Council Member Heffernan confirmed with City Manager Bludau that the budget numbers presented to the City Council include the supplemental items. 3. JOINT STUDY SESSION WITH PLANNING The council members took their place at the conference table and were joined by the following members of the Planning Commission: Chair Earl McDaniel, Vice Chair Larry Tucker, and Commissioners Jeffrey Cole, Edward Selich, Michael Volume 56 - Page 1003 INDEX (100.2004) City of Newport Beach Study Session Minutes June 22, 2004 Toerge and Barry Eaton. Assistant City Manager Wood stated that the current meeting is the second in a series of joint study sessions that the work program for the general plan update calls for. She introduced Woodie Teacher of EIP Associates and stated that he would be presenting some of the guiding principles that have been developed by the General Plan Update Committee (GPUC) and the General Plan Advisory Committee (GPAC). Assistant City Manager Wood explained that the guiding principles will be the foundation for the process of preparing and evaluating the land use alternatives. Using a PowerPoint presentation, Mr. Tescher stated that the guiding principles address five major topic areas, which include economic development, community character, workforce and special needs housing, mobility and alternative transportation modes, and environmental conservation. Mr. Tescher stated that there are a total of 39 guiding principles and that the current meeting would focus on the "top ten ", which are the guiding principles that might have had considerable discussion at the GPAC meetings or might be controversial, and those that have significant importance in setting the direction of the general plan. He stated that the current meeting is being held to receive input from the City Council and the Planning Commission on the guiding principles. Mr. Tescher displayed the first guiding principle, "maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach ". Council Member Rosansky noted that the word "beneficial" might be redundant since it would be assumed that something would be beneficial if it is desired to maintain and enhance it. Mayor Ridgeway asked if the principle was heading towards design review. Mr. Tescher stated that the general plan won't necessarily create design standards, but an implication of carrying out the principle could provide direction. Council Member Webb stated that the current standards allow boxy looking buildings. He asked if the principle could be structured to encourage uniqueness or architectural differences in developments. Mr. Teacher stated that everyone seems to agree that the principle and differentiation of places within the community is appropriate. He stated that the question is how to achieve this. Mayor Pro Tem Adams stated that the implementation of the principles isn't an issue that needs to be discussed at the current meeting. He stated that the guiding principles are citizen- driven through GPAC and that discussing the implications might be beneficial, but he didn't think it should go any further. Council Member Heffernan asked if there should be a timeframe for completing the general plan update. Mayor Pro Tem Adams stated that there is a very specific timeline and plan that is being followed. The current meeting is on the timeline. Mr. Teacher added that the entire schedule goes to the end of 2005. Mayor Pro Tem Adams stated that the development of the general plan is currently in the hands of GPAC, Volume 56 - Page 1004 IIU11 City of Newport Beach Study Session Minutes June 22, 2004 INDEX which is the body that will be making a recommendation to the Planning Commission who will make a recommendation to the City Council. He stated that GPAC is stable and large enough that it can withstand some vacancies and replacements. Mr. Tescher stated that the current meeting is meant to provide feedback to GPAC on the principles and if they're headed in the right direction. Mayor Pro Tern Adams added that it's meant to save GPAC time and assist them in generating a document that won't require a significant amount of change when it reaches the Planning Commission and the City Council. Mayor Ridgeway stated that it's important for the Planning Commission and the City Council to understand the principles and that this first one was one of the more ambiguous. Mr. Tescher displayed the second guiding principle, "establish general plan land uses and density /intensity limits that will have less impact on peak hour traffic ". Mayor Ridgeway asked if the principle accommodated the concept of smart growth. Mr. Tescher responded in the affirmative and stated that it is the intent of the principle. Council Member Rosansky expressed his concern for the mandatory nature of the statement. He felt that using the words "encourage" or "consider" might be more appropriate and explained that there are uses in which additional trips might be acceptable. City Manager Bludau asked if the principle would require the City to downzone. Mr. Tescher responded in the affirmative and stated that possibly the principle should be modified. Council Member Heffernan asked if the focus of the principle is to reduce peak hour traffic. Mr. Tescher stated that less impact is referring to that which is currently permitted. Mayor Pro Tem Adams agreed with Council Member Rosansky that the principle should possibly be reworded. Mayor Ridgeway also agreed and stated that the policy should strive for a balance. Mr. Tescher summed up the comments by stating that concepts of smart growth do make sense but that there may be situations where a use is important and should be considered with the mix of uses on a Citywide basis. Council Member Rosansky suggested that changing "establish" to "encourage" would do that. Commissioner Tucker stated that it's unclear as to whether the principle is dealing with certain areas or certain properties. He explained that some areas in the City might benefit from intensification while other areas may not need it. Mr. Tescher displayed the third guiding principle, "consider the rezoning of underperforming commercial areas to allow residential or mixed -use development ". Commissioner Selich asked why the word "consider" was chosen and stated that the word "encourage" might be better since there are some underperforming commercial areas in the City. Secondly, he suggested that "rezoning" be Volume 56 - Page 1005 City of Newport Beach Study Session Minutes June 22, 2004 IIV11*0 changed to "changing the land use designations'. Mayor Ridgeway agreed that "consider" should be changed to "encourage" and stated that in some areas, such as the peninsula, residential development in commercially zoned areas should be allowed, noting that there are commercial properties that have no demand. Currently, a general plan amendment is required. Mayor Pro Tem Adams noted that there are several guiding principles in every major area, and no single principle should be taken out of context and considered without the others. He explained that a number of the principles relate to land use and rezoning, and together they form an overall guiding policy. Assistant City Manager Wood recalled that GPAC decided on the word "consider" because they felt that "encourage" provided direction that was too strong. Council Member Rosansky agreed that "consider" would be adequate, and noted that he'd like to see some of the commercially -zoned areas in West Newport changed to residential or mixed -use. Mayor Pro Tem Adams added that "encourage" is presupposing and implies that in every situation the rezoning would make sense, which may not be necessarily true. Council Member Webb asked if the airport area should be considered in this category along with the peninsula and West Newport. Mayor Ridgeway stated that other guiding principles deal with the airport area and that the guiding principles do need to be considered in totality. Commissioner Tucker asked if the guiding principles would have to be adhered to strictly or if there would be an internal process to determine how the land use alternatives would be approached. Mr. Tescher stated that the guiding principles are intended to be a guidepost, but also flexible to change. Mr. Tescher displayed the fourth guiding principle, "preserve the community's heritage ". Assistant City Manager Wood stated that preservation has not been a priority in the City's planning and development efforts, and the question is, should it be given greater importance. Mayor Ridgeway stated that it has been given a strong consideration in the sense of place, but not in the sense of buildings. He explained that the general heritage in the City has been maintained, but buildings have not been gone after because of the strong feelings regarding property rights. Mr. Tescher displayed the fifth guiding principle, "general plan land use policies will facilitate an economically viable concentration of marine uses ". Council Member Bromberg stated that this provides an example of an issue that overlaps with the Local Coastal Plan (LCP), and that the matter has been fairly well covered. Volume 56 - Page 1006 City of Newport Beach Study Session Minutes June 22, 2004 INDEX Council Member Heffernan pointed out that there is little frontage remaining. Mayor Ridgeway stated that the harbor element is another policy document that addresses the issue of saving marine uses and that all of the documents are meshing together very well. Mr. Tescher displayed the sixth guiding principle, "in selecting land use and circulation system alternatives, weight will be given to traffic congestion that is ongoing as well as to congestion that is limited to a few hours of the day or a few months of the year ". Mayor Pro Tom Adams asked if the sentence should read, "...will be given to mitigating traffic congestion... ". Assistant City Manager Wood responded in the negative and stated that the principle is related to choosing the land use plan. Mayor Pro Tom Adams suggested that it might read, "...reducing traffic congestion... ". He stated that, otherwise, the statement doesn't make sense and could be interpreted that land uses that increase traffic congestion should be selected. After a brief discussion, Mayor Ridgeway noted that the principle is addressing time of year issues, such as summertime on the peninsula. He added, however, that traffic has increased throughout the City and agreed that the principle should be reworded. Council Member Nichols asked if the principle is also referring to projects that have peak hours, but not during the typical peak hours, such as a church. Assistant City Manager Wood stated that the principle is addressing both time of year and peak hours. Mr. Tescher summed up the comments by stating that the principle needs to distinguish between peak hour and seasonal. Mr. Tescher displayed the seventh guiding principle, "the general plan shall support the careful expansion of visitor - serving businesses and facilities, including hotels and meeting facilities ". In response to Assistant City Manager Wood's question, Mayor Pro Tem Adams stated that meeting facilities should be considered. Mayor Ridgeway agreed and stated that it's important in the long term if the City is going to be competitive in the convention business. Mayor Pro Tern Adams stated that it would help existing and future hotels to sell rooms during the off season. Council Member Heffernan asked where such a facility would be built Mayor Ridgeway stated that the Dunes and Fashion Island are possible locations. He noted that the total that has been discussed is 50,000 square feet, which could be added incrementally by the hotels, and would be enough to accommodate smaller conventions. Mr. Tescher displayed the eighth guiding principle, "the community will accept additional congestion when it chooses to maintain the current urban Volume 56 - Page 1007 City of Newport Beach Study Session Minutes June 22, 2004 INDEX form /community character by limiting roadway widening or other circulation system improvements; and improvements to the City's circulation system should protect and take into consideration the community's character ". Mayor Ridgeway stated that the challenge is considering the community's character when looking at such areas as Mariner's Mile versus Newport Heights. Council Member Nichols stated that in Corona del Mar, land that could've been used for a parking lot was instead used for duplexes, which shows that residential can also encroach into commercial. Mr. Teacher displayed the ninth guiding principle, "the general plan shall offer a distinct land use concept and policy framework for the airport area; and consider establishing a different level of service standard for the airport area, with consideration of possible impacts on residential areas ". Mayor Pro Tern Adams stated the principle makes sense, but that the impacts will need to be fully considered. Mr. Tescher displayed the tenth guiding principle, "consider the potential benefits and costs of land use and circulation system alternatives as part of the process of adopting goals regarding acceptable levels of service for the circulation system ". Assistant City Manager Wood explained that the members of GPAC did not want to be considering impacts first, and instead felt that they should go hand in hand with land use considerations. City Manager Bludau stated that questions regarding the State and local government finances are influx and should be considered when constructing a general plan. Mayor Ridgeway stated that the principle is at the heart of any general plan Council Member Bromberg agreed that it is an important principle, dealing with issues such as quality of life and property values. In response to Commissioner Eaton's question, Assistant City Manager Wood stated that GPAC discussed the idea of considering alternatives before adopting goals but decided that they should be done concurrently. Mayor Ridgeway agreed that the wording allows for debate and discussion, and that dialogue needs to be kept open. Commissioner Tucker stated that the planning commissioners only received the guiding principles on June 17, 2004. He suggested that the typical protocol be followed and explained that the Planning Commission should have the opportunity to review all of the principles in depth and then forward a recommendation to the City Council. He further suggested that the typical protocol be followed for the update of the general plan itself. Mayor Pro Tern Adams agreed that the suggestion made sense, but expressed his concern for losing the bottoms up approach to the process. He explained that it's a good idea for the Planning Commission to take a closer look at the principles in a public meeting, but it needs to be done in its proper context and it needs to be remembered that the principles were generated by GPAC. Volume 56 - Page 1008 City of Newport Beach Study Session Minutes June 22, 2004 INDEX Commissioner 'fucker agreed and stated that the Planning Commission would be reviewing the principles recommended by GPAC. He explained that the City Council will be making the ultimate decision, but it might be beneficial for the Planning Commission to review the principles and make a recommendation also. Mayor Ridgeway expressed his support for Commissioner Tucker's suggestion. He stated that it would provide for more dialogue and for an administrative record, and GPAC members could be present at the meeting. He felt that it would provide the opportunity for more citizen involvement and explained that the joint study sessions are a difficult format for citizens to provide input. Mr. Tescher noted that the process is currently involving GPAC in generating the land use alternatives, which should be completed in the next six weeks. He stated that this information will be transferred to the traffic and economic consultants, who will determine the impacts of the options. The process will then involve another round of general public discussions to receive feedback on the options and impacts. He stated that this would take place in the Fall of 2004. Mayor Ridgeway supported the process and the additional opportunity for public input. Assistant City Manager Wood noted that any changes to the current process will involve additional time and money. She explained that a meeting with the Planning Commission and a meeting with the City Council have not been programmed into the timeline. In response to Commissioner Toerge's comment, Mayor Pro Tem Adams reminded everyone that the process should remain a bottoms up approach. He stated that having council members at the GPAC meetings would be inappropriate. Council Member Heffernan asked for additional information on the timeline. Mr. Tescher stated that the recommended land use plan would be in place by the end of 2004. By the middle of 2005, the policy section of the plan would be formalized. In response to Commissioner Tucker's question, Mr. Tescher stated that the environmental document will be prepared concurrently with the general plan. Once the general plan and Environmental Impact Report (EIR) documents are prepared and published, the Planning Commission will hold the initial rounds of public hearings. After public testimony is received, the Planning Commission will make a recommendation to the City Council. Assistant City Manager Wood added that the draft EIR and draft general plan are expected to be released in September of 2005. Mayor Ridgeway acknowledged the work done by Mr. Tescher and EIP Associates. PUBLIC COMMENTS • Roger Summers, Chairman of the Project Advisory Committee (PAC) for Santa Ana Heights, stated that the residents in Santa Ana Heights are pleased to be a part of Newport Beach, but still have a concern for aesthetics and the limited open space in the area. He displayed a map of the area and pointed to two Volume 56 - Page 1009 City of Newport Beach Study Session Minutes June 22, 2004 parcels at the corner of Mesa and Birch. Mr. Summers requested that the parcels be developed into a passive park, which would also serve as an attractive entrance to Santa Ana Heights. He stated that the County wants to develop the two parcels into a parking lot. He asked the City Council to agendize the issue for a future City Council meeting and support a passive park. ADJOURNMENT - at 5:55 p.m The agenda for the Study Session was posted on June 16, 2004, at 3:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk v, Recording Secretary Mayor Volume 56 - Page 1010 INDEX City of Newport Beach Study Session Minutes June 22, 2004 II\DEX LEFT BLANK INTENTIONALLY Volume 56 - Page 1011