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HomeMy WebLinkAbout06/24/2008 - Study SessionCITY OF NEWPORT BEACH City Council Minutes City Council Study Session June 24, 2008 — 3:00 p.m. I. ROLL CALL Present: Council Member Henn, Mayor Pro Tem Daigle, Mayor Selich, Council Member Webb, Council Member Curry, Council Member Gardner Excused: Council Member Rosansky 1I. CURRENT. BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. It was a consensus of Council to discuss Item #7 (Lower Newport Bay Dredging Project) during the Study Session. 2. DEPARTMENT BUDGET OVERVIEW. Utilities Director Myrter provided a PowerPoint presentation that included the mission statement, operating budget and expenditures, and revenue or fees collected for the different department divisions. He discussed major department accomplishments, challenges, water supply and power cost increases, the groundwater basin pumping percentage, and the benchmarking process. In response to Council's questions, Utilities Director Myrter stated that the proposed increase in expenditures in the electrical division is from a combination of energy cost and royalties that are paid to residents and noted that the increase in revenue relative to oil and gas is a conservative estimate. He reported that the financial plan will look at a comprehensive five year approach to give Council alternatives to fund water fee increases. Futher, the total amount of water usage is stable and within 3 %, and has been for the last eight years. He reported that they will provide information in a future bill to educate residents about the importance of using less water. Council Member Rosansky joined the meeting at 3:16 p.m. The new Library Director, Cynthia Pirtle, thanked Council for the opportunity to work in the City and provided her background. Library Services Manager Warren utilized a PowerPoint presentation that included the mission statement, salaries, maintenance and operations costs, capital outlay, allocation plan, major expenditures, library organization, proposed new positions, circulation increase at Mariners, the addition of story times at Corona del Mar Library, the addition of one position for Arts and Cultural Services, and service indicators. In response to Council Member Henn's question, Library Services Manager Warren stated that the additional staff will be at clerk level and not library assistant level, and the budget is set by the number of hours, not by the number of positions, to ensure that Volume 58 — Page 519 City of Newport Beach Study Session June 24, 2008 retirement is not required. Council Member Curry expressed appreciation for the Shakespeare in the Park series Recreation and Senior Services Director Morgan utilized a PowerPoint presentation that included the department successes, department goals, budget overview, division revenue, what's new, the department overview, Senior Services Division revenue information, and additional funding /services support to Senior Services. In response to Mayor Pro Tem Daigle's question, Recreation and Senior Services Director Morgan stated that 7% of the participants in the adult recreation classes are non - residents. Risk Manager Farley provided a brief explanation of the Insurance Reserve Fund for workers compensation and general liability. Administrative Services Director Danner utilized a PowerPoint presentation that included the Compensated Absence Fund, Retiree Insurance Fund, Debt Services, Police Grants, AQMD, and Environmental Liability. Council Member Henn noted that legal expenses related to group homes litigation is budgeted through the general liability fund. He added that the Finance Committee is working with staff to .review the policies related to funding levels for all the internal reserves and they provide recommendations to Council. Council Member Henn commended the Recreation and Senior Services Department for their hard work and lack of complaints. Council Member Curry commended Recreation and 'Senior Services Director Morgan and his staff. Council Member Webb complimented Recreation and Senior Services Director Morgan and believed that he pulled a department together and made great accomplishments. In response to City Manager Bludau's question, Recreation and Senior Services Director Morgan stated that staff monitors the Senior Center to make sure that the appropriate people attend. In response to Mayor Pro Tem Daigle's question, Recreation and Senior Services Director Morgan stated that the biggest challenges are to stay on track with opening the OASIS Senior Center and to make sure that services for seniors are protected. City Manager Bludau suggested that Council clarify information from the checklist, so they can be properly addressed at the council meeting, if needed. In response to Mayor Pro Tem Daigle's question, City Manager Bludau stated that the permit technician will provide plan check applicants with a checklist of basic information. The process should ultimately provide less reliance on outside plan checkers. In response to Council Member Webb's question, General Services Director Harmon explained that the McArthur Boulevard median trees are a continuance of the project on San Joaquin Hills Road. Further, the landscaping change at Irvine Terrace is to add trees and shrubs. 8. LOWER/UPPER BAY DREDGING FUNDING Volume 58 - Page 520 City of Newport Beach Study Session June 24, 2008 Assistant City Manager Kiff and Harbor Resources Manager Miller provided a PowerPoint that included the areas of concern (shoaling), areas of concern (toxicity), and challenges. In response to Council's questions, Harbor Resources Manager Miller stated that they will most likely be able to remove the mercury in some of the areas. He noted that there are areas that need more testing and if there is a dredging project, they will focus on the easiest areas first. He explained disposal methods, bond financing, and other sources of funding. He also stated that the Lower Bay is the U.S. Army Corps responsibility and they never required a local match from the City; however, the strategy is to provide a portion of the money needed to get the project done. He anticipated that the recovery of funds for this project will be funded by Harbor fees, cost of services, appraisals, and economic analysis, which is estimated at $3 to $6 million per year. Council Member Henn suggested that staff make sure there is a full and realistic view of the total size of the problem. He believed that whatever solution is adopted, that the increased user fees in the harbor have a direct connection. In response to Mayor Selich's question, Assistant City Manager Kiff stated that the Water Quality Master Plan is used to look at the cost, the Harbor Area Management Plan (RAMP) is a tool for funding and is directed towards the regulatory agencies, and the City would prove that eelgrass can be sustained by replanting it at locations that are not close to residential piers and boats. City Manager Bludau believed that staff should provide Council with a roadmap for the project and a rough estimate of fees. He noted that the $100,000 in the checklist is for scientific study and believed that the Lower Bay fees will most likely come from the City and residents. Council Member Curry agreed that they need to get a handle on the fees and move forward to a comprehensive solution. Council Member Webb expressed concern about having a debt service fee for a 30 year period and Council Member Rosansky expressed concern about ongoing maintenance fees. City Attorney Clauson stated that there's an appraisal that recommended the amount.to charge for rental of the water in the tidelands; however, a large dredge project was not taken into consideration. City Manager Bludau suggested that Item #7 from the Consent Calendar be pulled so staff can provide a comprehensive idea of how the project will be handled. Council Member Henn suggested that the money from the checklist remain available for the scientific study. 4. BUCK GULLY FIRE STUDY. City Manager Bludau announced that the item will be continued to the July 8, 2008, Council meeting and that a staff report will be provided. Volume 58 - Page 521 City of Newport Beach Study Session June 24, 2008 III. PUBLIC COMMENTS - None IV. ADJOURNMENT - 5:13 p.m The agenda for the Study Session was posted on June 24, 2008, at 4:15 p.m on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Mayor Volume 58 - Page 522