Loading...
HomeMy WebLinkAbout05/08/2007 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session May 8, 2007 — 4:00 p.m. I. ROLL. CALL II. Present: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In response to a question by Council Member Curry regarding Item 13, Assistant City Manager Wood noted the staff report contains a typographical error, and the committee recommends the appointment of Charles Unsworth as the At -Large representative to the Economic Development Committee. 2. BUDGET OVERVIEW. Administrative Services Director Danner spoke to a PowerPoint slide show pertaining to the City Charter budget provisions; new developments and pending issues; organizational chart; items included and not included in the budget; one -time expenditures for the 2007 -08 budget; reoccurring Council grants included in the budget; expenditures removed from the 2007 -08 budget; budget preparation process; total City budget structure; General Fund- - major revenue sources, balance, and special reserve funds; revenues and how they are budgeted; expenditures and how they are estimated; supplemental budget requests; budgeted full-time positions and new positions; and the net cost of full -time position changes. He noted the budget documents are available online at the City's website. In response to Council questions regarding receipt of approximately $7.5 million from the County of Orange for the fire station, City Manager Bludau stated that the $5.5 million not mended in the budget is new money, the amount for the land value ($1.5 million) has already been received, and the $2.5 million for the station would be on top of this $5.5 million:. Council Member Daigle noted the staff report regarding annexation (to be discussed later this evening) indicates Supervisor Moorlach conceptually approved $7.3 million in funding. City Manager Bludau added that $9.6 million ($4.1 million from the prior agreement and $5.5 million from the new agreement) is anticipated to be received from the County of Orange. Mayor Pro Tem Selich stated that Assistant City Manager Kiff had previously prepared a chart on fire station funding sources, costs, and County commitments and requested that this be updated and presented to Council. City Manager Bludau spoke to the supplemental budget requests noting that $3.2 million in requests were submitted, and he approved $1.7 million in requests. He added that the $622,404 approved for. Recreation was due to the Newport Coast community center coming on line and the need to fund positions to staff the facility, as well as equipment purchases. These positions, in addition to ones proposed for General Services, will be discussed later and are due to assuming responsibilities associated with the Newport Coast. Volume 58 - Page 132 City of Newport Beach Study Session Minutes May 8, 2007 In response to a question by Council Member Gardner, City Manager Bludau stated the difference in the requested and approved funding for Fire is mainly due to the hiring of three firefighters, which he did not feel the budget could support, as other needs were more pressing. Regarding questions pertaining to the Library, City Manager Bludau stated that no changes in Sunday's operating hours are proposed, and the proposed funding will be used for installation of a book drop at Mariner's Library, window replacements at the Balboa branch, a new vehicle to get between the central and branch libraries, a couple of part -time positions, and for servicing the Newport Coast. Council Member Daigle requested that staff research and advise Council on the cost to open the library one hour earlier on Sundays. Council Member Henn requested the line item detail on the approved and unapproved supplemental budget requests. In response to Council questions, Administrative Services Director Danner explained how the budget base line is established and reductions in the Planning Department's budget. City Manager Bludau reviewed the new (7) and deleted (2) positions being recommended, noting that the net cost of the full -time position changes is $195,238. In response to a question by Mayor Pro Tem Selich, City Attorney Clauson stated that the concept behind deletion of the Deputy City Attorney was to amend the budget to reflect the direct needs of the department in replacing that position with a paralegal to handle the non- legal aspects of the job and putting the salary savings into their outside legal services account. Council Member Henn advised that the 06.07 estimated department expenditures are for a nine -month period only. Administrative Services Director Danner stated that these figures will be corrected in the final budget document. 3. CIP PRESENTATION. Public Works Director Badum displayed a PowerPoint slide show providing an overview of the following: the Capital Improvement Program (CIP) as a tool for project planning; CIP process; preliminary CIP; delivery issues; constraints; workload management; current CIP staffing; fund summary; proposed FY 2007/08 CIP; new CIP format organized by primary function or benefit; new appropropriations, rebudgets, and highlights for facilities; streets and drainage; traffic; parks /harbors beaches; water quality and environmental; water and wastewater; and miscellaneous. In summary, new appropriations are at $22,587,000 and rebudgets at $14,729,135 for a total of $37,316,135 for 87 existing and 54 new projects. He noted this CIP total is 6.8% less than the FY 06/07 approved CIP. In response to a question by Council Member Henn, Public Works Director Badum stated that rebudgeted projects include those that extend for many years or those that were not able to be completed in that year. Council Member Webb added that retirements and personnel leave may also have contributed to the need to rebudget projects. As requested by Council Member Henn, Director Badum indicated he will address the major rebudgeted projects when reviewing each category and indicate the reason for rebudgeting. He advised that a schedule has been included in the CIP document to assist in measuring performance; and staff will provide quarterly updates to Council on project status. He noted the proposed CIP does not include some of the major projects (i.e., Newport Center Park, Mariner's Park, Sunset Ridge Park) which are pending Council prioritization and will be brought back following Council direction. Volume 58 - Page 133 City of Newport Beach Study Session Minutes May 8, 2007 Pertaining to the budget, Council Member Henn requested that prior to the next budget discussion, staff provide a profit and loss presentation on water, wastewater, and refuse collection that identifies the revenue line, operating expenses, CIP, and reserve changes. He requested this presentation include an 06/07 estimate and 07/08 budget. He also asked that Administrative Services Director Danner or his staff work with him to get a better understanding of the reserve changes in the internal service funds. In response to a question by Council Member Curry, City Manager Bludau stated that the .next study session will start with a more detailed discussion on the CIP projects. III. PUBLIC COMMENTS - None IV. ADJOURNMENT - 6:00 p.m. The agenda for the Adjourned Regular Meeting was posted on May 2, 2007, at 2:00 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building.. City Clerk �u11•/0 /, �L ►.1..� / Volume 58 - Page 134