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HomeMy WebLinkAbout02/23/2010 - Study SessionCITY OF NEWPORT BEACH City Council Minutes City Council Study Session February 23, 2010 — 4:00 p.m. I. ROLL CALL Present: Council Member Selich, Mayor Pro Tem Henn, Mayor Curry, Council Member Webb, Council Member Gardner Absent: Council Member Rosansky, Council Member Daigle II. CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Daigle arrived at 4:02 p.m In response to Mayor Pro Tem Henn's question regarding Item 4 (Bonita Canyon Bond Funds), Recreation and Senior Services Director Detweiler clarified that Bonita Creek Park, not Bonita Canyon, would be the first park to receive artificial turf. Mayor Pro Tem Henn asked staff to determine whether artificial turf is needed at this time to allow the City to save the funds. In response to Council Member Daigle's questions regarding Item 4, City Attorney Hunt noted that the report was pulled because the City Attorney's Office has not reviewed it and that he will be available to answer questions at the March 9 meeting. Council Member Webb recommended that staff confirm the school district's future plans for the site. City Manager Kiff noted that the school district has designated their share to parking improvements at Corona del Mar High School. Council Member Rosansky arrived at 4:04 p.m. Regarding Item S12 (Excess General Liability), Mayor Pro Tem Henn commented that the broker relationship has not been reviewed for a while and suggested that all consulting services be reviewed more regularly as a good business practice. Risk Manager Farley noted that the price decreased by $19,607 and that quotes have been secured for two years on the Master Property coverage and three years on the Water Craft Policy coverage. 2. CITY MANAGER RECOGNITION OF COMMUNITY YOUTH CENTER CREW. 1100-20101 City Manager Riff acknowledged the City staff members involved with the remodel and renovation of the Community Youth Center (CYC). He noted the compliments the facility has received from the community and that revenue has gone up $20,000 per quarter since the reopening. Council Member Gardner noted how quickly staff resolved a-landscaping issue and Volume 50 - Page 400 City of Newport Beach City Council Study Session February 23, 2010 commented on the new amenities at the CYC_ Council Member Webb commented that the CYC is a great asset to the community. 3. BUDGET BRIEFING. 1100-20101 Administrative Services Director McCraner utilized a PowerPoint presentation to discuss the current deficit, projected deficits and budget projections before corrective actions, total revenues vs. total expenditures, 25 year assessment of property value, property and sales tax, transient occupancy tax, expenditure forecast assumptions, retirement contributions, and corrective actions. In response to Council questions, she stated that a 6% assumed percent change in sales tax for 2010 -11 is conservative compared to State estimates of 8 %. She also discussed the relationship between Proposition 13 and a negative Consumer Price Index (CPI) and the properties this will apply to. She futher highlighted the delinquency rate, the reason for the estimated property tax rates, the City's monitoring of property assessment requests, investment activity in relation to retirement contributions, CaIPERS, the City's Fiscal Sustainability Plan, and the City cell phone policy. Mayor Pro Tem Henn discussed the trend of the negative assessed valuations during the 1990s and how it compares to the current situation. City Manager Kiff noted that the 25 year assessed property value slide is actually referring to tax receipts and that the dip on the graph shows the State's initial shift in property tax. Council Member Webb requested and received clarification regarding City contributions to retirement. City Manager Kiff utilized a PowerPoint presentation to discuss the five point plan to bridge the budget gap: 1) reduce the operating budget, 2) adjust the CIP approach, 3) make appropriate revenue adjustments, 4) have a strategic plan if using reserves, and 5) utilize restructuring. In response to Council questions, he noted that parking meter rates would increase from $1.001hour to $1.75/hour, and that parking lots would increase to the State rate of $15 /car on weekends. He discussed the allocation of reserves and general funds, clarified the definition of a non - essential street light and the significant savings from turning them off, and noted that excess PERS contributions were banked in the Facilities Financing Plan (FFP) Reserve which now totals $25 million. Public Works Director Badum discussed a test where street lights would be turned off at MacArthur and San Joaquin. Council Member Webb expressed concern for turning off street lights and noted potential safety issues. Council Member Gardner requested and received clarification regarding ambulance transportation and how it affects the current program. She also suggested providing opportunities for residents to volunteer or suggest cost saving ideas to the City. Mayor Curry commended staff for their ideas to cut the budget, discussed the difficult choices that will need to be made, and noted that by the end of the year, Newport Beach will have a City government that is leaner, more efficient, and better managed. Mayor Pro Tem Henn directed staff to look at all the alternatives for saving money Volume 59 - Page 401. City of Newport Beach City Council Study Session February 23, 2010 and bring a proposal back to Council. He also noted that the problem today is not from a one -time event but is sourced from a repeating structural gap; therefore, a solution is needed that does not rely upon reserves. He also commended staff for their tremendous progress in a very short period of time to address the issues and noted his uneasiness about the amount of work remaining in order to reach a complete solution. 4. PERMANENT ELECTRONIC DISPLAY SIGN FOR CORONA DEL MAR. [100 -20101 Economic Development Coordinator Bowden reported that staff determined that an electronic display sign would be the best alternative for displaying events in Corona del Mar, discussed the feasibility for installation, and stated that it would cost $30,000 to $35,000. In response to Council questions, she discussed the amount of time spent looking at alternatives. Council Member Gardner took issue with the appearance of the current banners and felt that a higher sign standard needs to be developed. She also expressed concern about the financial aspect of installing an electronic sign. Council Member Selich expressed opposition for an electronic sign because it would take away from the aesthetics of the area and suggested that alternatives be investigated. Council Member Webb agreed with Council. Member Selich, believed that signs are needed more in other locations, and expressed concern for the significant expenditure this could present. Council Member Daigle requested clarification as to standards regarding which groups can display signs. Mayor Pro Tem Henn suggested that resident associations consider funding the electronic sign if they feel a strong need for it. Mayor Curry also expressed concern for the appropriateness of an electronic sign for the location. III. PUBLIC COMMENTS - None IV. ADJOURNMENT -6:27 p.m. The agenda for the Study Session was posted on February 17, 2010, at 80 p.m on the City Hall Bulletin Board located outside of the City of Newport .Beach Adnoinistration Building. ICI r( Beoording %s�oretary Mayor Page 402