HomeMy WebLinkAbout05/23/2006 - Study SessionCITY OF NEWPORT BEACH
City Council Minutes
Study Session
May 23, 2006 — 4:00 p.m.
ROLL CALL
Present: Council Member Curry, Council Member Selich, Mayor Webb, Council Member Ridgeway,
Council Member Daigle, Council Member Nichols
Absent: Mayor Pro Tem Rosansky
(Mayor Pro Tem Rosansky arrived at 4:17 p.m.)
CURRENT BUSINESS
1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR.
In regard to Item No. 5, Property Tax Exchange Agreement for West Santa Ana Heights &
the Emerson Tract, Council Member Nichols asked if the County agrees with the staff
recommendation. City Manager Bludau responded in the affirmative.
In response to questions by Council Member Nichols, Public Works Director Badum
provided additional information on the encroachment permit addressed in Item -No. 10, Non -
Standard Improvements at 6707 and 6709 Seashore Drive, and provided the history of the
improvements addressed in Item No. 11, Request to Construct Non - Standard Improvements
at 3431 Ocean Boulevard.
Referring to Item No. 16, Mitigated Negative Declaration relating to a Water Quality
Improvement Project ( "Oloid Project ") around Newport Island, Council Member Nichols
asked how well the project is expected to work. Assistant City Manager Kiff explained that
there is a ten -year warranty and that the State Water Resources Control Board staff
considers the project to be a pilot project and will allow the City to pull out with no penalty if
it isn't. working. He additionally noted that an engineering firm conducted an analysis of the
project and determined that it will work.
In response to Council Member Daigle's questions regarding Item No. 3, Continuous Utility
Service Agreements, Administrative Services Director Danner stated that the $35 fee is a
one -time fee and covers the cost of providing the service.
In regard to Item No. 5, Council Member Daigle requested additional information on
the scope of the agreement and how the limitation on the City's land use authority would
affect West Santa Ana Heights. City Manager Bludau explained that the property tax
exchange agreement only pertains to the portion of the property tax that is not subject to the
redevelopment agency. Both he and Assistant City Manager Kiff provided additional
clarifications.
Assistant City Manager Kiff confirmed for Mayor Webb that the agreement is a step in the
annexation process, but does not finalize the annexation.
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Mayor Pro Tem Rosansky joined the meeting at 4:17 p.m.
Regarding Item No. 14, Wide Area Network Upgrades, Council Member Daigle asked why
a wireless network is considered preferable to a T -1. Administrative Services Director
Danner explained that it's a matter of speed and cost effectiveness, and that the T -1 lines
aren't providing the daily capacity needed.
2. BUDGET OVERVIEW.
City Manager Bludau reviewed the budget presentations made at the City Council Study
Session held on May 9, 2006, and encouraged the Council Members to ask questions
and request additional information whenever needed. He noted the supplemental checklist
provided to the Council Members. Council Member Daigle requested that Council Member
requests included in the budget also be highlighted.
Using a PowerPoint presentation, Assistant City Manager Kiff displayed the allocation
plan for the City Council's budget and highlighted some of the expenditures included under
maintenance and operations. At the request of Mayor Pro Tem Rosansky, Administrative
Services Director Danner explained that the approximate $256,000 budgeted for salaries and
benefits in fiscal year 2006.07 includes the Council Member allowances, health, dental
and vision benefits, and retiree and life insurance. It was additionally noted that Bob
Burnham is also paid from this account for his legal work associated with spheres issues. A
brief discussion followed regarding the money allocated for spheres issues.
City Clerk Harkless displayed the allocation plan for the City Clerk's budget and reported
that with the. exception of the money allocated for elections, the 2006 -07 budget is status
:quo. She noted that the proposed allocation for elections is calculated from information
provided by the County, and is expected to be twice as much as it was in fiscal year 2004 -05.
Assistant City Manager Kiff displayed the allocation plan for the City Manager's budget,
reported that it also is a fairly status quo budget and highlighted some of the expenditures
included in the professional and technical services account. He noted that the City
Manager's budget includes Harbor Resources, the Public Information Officer and Code &
Water Quality Enforcement. It was clarified that the amount displayed for Harbor
Resources, $1,965,090, includes salaries and benefits, as well as maintenance and
operations.
In response to Council Member Daigle's question, Administrative Services Director reported
that approximately $5 million is being budgeted for overtime City -wide in fiscal year 2006-
07.
Human Resources Director Ramsey displayed the mission statement for Human Resources
and explained some of the department's functions. She reported that for several reasons, the
City's turnover rate is currently very high, and specifically noted that 32% of the City's
workforce is over the age of 50 and that it is becoming more difficult to recruit new
employees. Additionally, she reported that 70% of the management level employees are over
the age of 50, 41% are over the age of 55 and 56% of the department directors are retiring in
the next year or are of retirement age. Human Resources Director Ramsey also displayed
the allocation plan for the department, and the staffing and functions of the two divisions,
which include administration/operations and risk management. She listed and highlighted
several of the department's service indicators, as provided in the Resource Allocation Plan.
Lastly, she reported that the budget includes an increase of $120,000 for recruitments,
$25,000 for employment litigation and over $54,000 for a temporary part -time employee.
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Administrative Services Director Danner displayed the department's mission statement. He
also displayed a comparison of the fiscal year 2005 -06 and 2006 -07 budgets, and listed
the items that account for the approximate $1 million increase in the 2006 -07 fiscal year. He
stated that the department is made up of five divisions, which include Resource
Management, Fiscal Services, Management Information Systems, Revenue and
Accounting. He displayed the budget and functions of each. Administrative Services
Director Danner displayed a list of other activities and the debt service estimates for 2006-
07. In response to Council Member Selich's question, Administrative Services Director
Danner stated that the Balboa Marina loan will be paid off in 2016 and the water revenue
bonds in 2010. He also displayed the significant revenue sources that the department
administers and manages.
Fire Chief Riley displayed the mission statement for the Fire Department, as also presented
in the Resource Allocation Plan. He displayed the department's budget for fiscal years 2005-
06 and 2006 -07, and noted that it indicates a total increase of 8.75% for 2006 -07. He
highlighted some of the reasons for this increase. The department consists of six divisions,
which include Administration, Fire Operations, Prevention, Emergency Medical Services,
Training and Lifeguard Operations. He displayed the budget allocation and staffing for
each, noting that the Fire Operations Division represents 65.3% of the department's total
budget. He also highlighted the key functions of each division. In response to Council
Member Daigle's question, he stated that the new training facility in Santa Ana Heights will
reduce the department's training costs because more training will be accomplished in- house.
In response to Council Member Ridgeway's question, Fire Chief Riley stated that overtime in
the Fire Operations Division costs approximately $2.3 million annually. He summarized the
reasons why overtime is utilized and stated that additional details are provided in the
budget detail. He also explained when an employee's hours are subject to overtime. In
response to Council Member Selich's questions, Fire Chief Riley explained how the
department attempts to reduce overtime costs and how vacant shifts are filled
Fire Chief Riley displayed and listed the revenue that is generated in the department. He
also displayed and briefly explained the significant program issues in the department.
These included professional competency, continued emphasis on emergency preparation and
long term facility needs. In response to Council Member Selich's question, Fire Chief Riley
stated that the City is as prepared as it can be for emergencies. In response to Council
Member Daigle's question, he stated that the department's goal is to reach every part of the
City within five minutes or less, 90% of the time.
Fire Chief Riley stated that seven new positions were requested by the Fire Department,
four of which are included in the budget and include a new Information and
Communications Coordinator, and three new Firefighter Paramedic positions. He provided
details of the functions that would be performed by the Information and Communications
Coordinator, which included the coordination of special department computer and software
applications, and coordination with other providers and agencies. He stated that he
originally requested six new Firefighter Paramedic positions and three were approved by the
City Manager. He explained why they are needed, and provided detailed information on
effective staffing levels and the importance of maintaining the Firefighter and Paramedic
positions as dual roles.
Fire Chief Riley displayed photos and stated that the department operates four different
types of equipment in the field. These include command cars, fire engines, ladder trucks and
paramedic ambulances. He described the components and functions of each of the different
companies. He also displayed and listed the resources needed for fireground operations and
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first alarm assignments. In response to Council Member Ridgeway's question, Fire Chief
Riley stated that no new equipment would be needed for the new positions being requested.
It was determined that due to the number of budget presentations remaining, the Study
Session on June 13, 2006, would start at 3:00 p.m.
Dolores Otting asked the City Council to also consider the construction of new fire stations
as a way to improve response time, and she expressed her support for the Fire Chiefs
request for six new positions. She also expressed concern for the size of the new ambulances
and their ability to make it down all of the streets in the City. Lastly, she suggested that the
first item on the Study Session agenda, Clarification of Items on the Consent Calendar, be
moved to the end of the agenda.
PUBLIC COMMENTS - None
ADJOURNMENT at 6:00 p.m.
The agenda for.the Study Session was posted on May 17, 2006, at 2:45 p.m. on the
City Hall Bulletin Board located outside of the City of Newport Beach
Administration Building
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Recording Secretary
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Mayor
City Clerk
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