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HomeMy WebLinkAbout05/22/2001 - Study Session-1 CITY OF NEWPORT BEACH City Council Minutes Study Session May 22, 2001- 3:40 p.m. ROLL CALL Present: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Regarding Item 21 (EQAC's Comments on Crystal Cove Historical District), Council Member Glover stated that the subcommittee that will be reviewing the responsibilities of the Environmental Quality Affairs Committee (EQAC) and the Economic Development Committee (EDC) should require that any project outside the City limits come back to Council before EQAC works on it so that Council could vote on whether to use City staff. Council Member Proctor expressed concern that taking a position on the Crystal Cove issue might affect the City's efforts with the State Department of Parks and Recreation on the CalTrans West Project. He believed it is important that the City have a little more control over some of these issues before they are addressed. Regarding Item 12 (Professional Services Agreement for Balboa Village Project Management Service), Mayor Adams believed that the insurance limit of $500,000 is too low and expressed concern that there is no requirement for Errors and Omission (E & O) insurance, even though an E & O requirement is in the contract. Public Works Director Webb reported that the engineer's primary duty is to act as a coordinator between the City and other engineers, and will not be doing any formal designing. Assistant City Attorney Clauson reported that she and the Risk Manager looked at the contract and determined that this was not a high risk factor for the type of work the engineer would be doing. She added that they also looked at the type of automobile insurance the engineer has. Mayor Adams stated that his company has almost identical contracts doing almost identical types of service and that he has never had a city reduce their insurance limits because of the type of work. He asked if this contract is consistent with the City's other engineering contracts. 2. BUDGET REVIEW. City Manager Bludau introduced Public Information Officer Gail McElroy. Ms. McElroy stated that she is excited to be working for the City and with Council. Volume 54 - Page 257 INDEX 2001/2002 Budget (40) City of Newport Beach Study Session Minutes May 22, 2001 INDEX Mr. Bludau explained that the "wish list" is an ongoing list of issues that are raised by Council but are not in the proposed budget. He indicated that Council can place an item on the list at any time, preferably before the entire Council so everyone is aware of what is on the list. Council will be given the wish list at the next meeting and, prior to adopting the budget, it will decide which items on the list will be funded. Council Member O'Neil requested that an item be placed on the wish list to give $75,000 to the Corona del Mar Business Improvement District (BID) for landscaping and other improvements. He added that the BID will provide some matching funds and noted that this was approved last year. He also requested that the same amount that was appropriated to Michaels Media be included on the wish list. In response to Council Member Glover's questions, Public Works Director Webb reported that $600,000 is already included in the Capital Improvement Program (CIP) budget for Mariner's Mile for the first phase of the project. Mayor Adams reported that the Nature Center requested a $100,000 contribution over a three year period. He stated that he already requested that the City budget $33,000 this year and review it again next year. Council Member Glover indicated that she received a call from the )film Festival organizers who are requesting $75,000 this year. Administrative Services Director Danner believed that it would be appropriate for the Film Festival to make a case for the City to spend public funds on this. Regarding the Newport Village Site, Council Member Bromberg requested that $35,000 be set aside for the preparation of a conceptual plan for developing the site as a passive park. He also requested that the City provide matching funds if the Balboa Island Museum and Historical Society raises $350,000. Council Member Proctor requested that money be set aside for the CalTrans West Project. Mayor Pro Tom Ridgeway indicated that he has a list that he will provide to staff, but noted that the drainage issues on Balboa Boulevard from 16th Street to 19th Street and on Newport Boulevard from 19th Street to 218t Street do not appear on the budget this year. Mr. Webb explained that some of the future projects in that area were not shown in the budget since they were not programmed to have money spent on them next year; however, they can be added into the final CIP. Mayor Pro Tern Ridgeway requested a list of which Balboa Village projects are to be funded in the future and what year the funding will occur. He also pointed out that there is no reference to the Lifeguard Headquarters' communication, video, and emergency power which had a budget of $380,000 last year. Mr. Webb stated that this might have been included in the oil spill program. Mayor Pro Tom Ridgeway noted that the Washington Street Plaza and fagade was budgeted at $786,750 over five years but nothing was budgeted this year. Mr. Webb indicated that the Washington Street restroom replacement is listed as a separate project for Volume 54 - Page 258 4 City of Newport Beach Study Session Minutes May 22, 2001 INDEX $210,000 in Phase 1 and the surrounding streetscape is part of Phase 11 or III of the Balboa Village Project. Mayor Pro Tom Ridgeway also pointed out that, in the CIP budget on page 48, the Balboa Village Improvement Project has a budget of only $5,105,942 when it was previously budgeted at $7 million. He stated that Council needs to understand the money allocations for this since it is a three year project and expressed concern that there may not be money set aside for this project. Regarding beach restroom improvements (page 57), walkway and lighting replacements (page 58), and beach access walkway replacements (page 60), Mayor Pro Tom Ridgeway stated that those projects did not get done last year. He received confirmation from Mr. Webb that the amounts budgeted are the same as last year's budget. He stated that almost all of the oil spill moneys that were not used were rebudgeted and that a lot of the projects are scheduled for construction after the beginning of the fiscal year or in the fall. Council Member Heffernan requested that $50,000 be included in the budget to supplement the $350,000 shortfall in the completion of the landscaping along the frontage of MacArthur Boulevard. Mr. Webb stated that he is working on a possible funding source. Human Resources Director Livingston reviewed the services that the Human Resources (HR) Department provides. She reported that the department has seven employees and that they are requesting two new positions (Office Assistant and HR Analyst). She indicated that the Office Assistant will handle telephone calls and counter traffic, while the HR Analyst will handle classification and compensation functions, employee relations, the performance evaluation system, and training on legal mandates. She stated that these positions are needed to improve service delivery, comply with legal regulations, provide consistency and equitable treatment to all employees, and improve the overall effectiveness of the employees in the organization. She indicated that they are currently not able to provide all the services that are needed, particularly the performance evaluation system and training programs. In response to Council Member Glover's questions, Ms. Livingston stated that HR not only has a lot of interaction with employees but also with applicants. She indicated that they answer questions regarding applying for jobs, City benefits, and other aspects that deal with becoming an employee. Further, they also deal with retirement and retiree medical issues. Ms. Livingston stated that HR's largest expense is in Account 8080 (professional and technical services) which is used for fingerprinting employees, conducting employee physicals, DMV checks, labor relations, testing services, and occasional external legal advice; however, she pointed out that they are not asking for an increase in that account. In response to Mayor Pro Tem Ridgeway's questions, Mr. Danner reported that, from 1995 to 1999, HR was a division of the Administrative Services Department, was transferred to the City Manager's Office in 1999, and became its own department last year. Mr. Bludau stated that HR is critical in tying the organization together and providing standards and fairness throughout the organization. Mayor Pro Tem Ridgeway noted that the City Volume 54 - Page 259 City of Newport Beach Study Session Minutes May 22, 2001 INDEX did have legal problems due to a shortfall in HR. Ms. Livingston indicated that some of the HR Analyst's duties can be handled by a consultant; however, it is very expensive. She believed that someone internally should be doing these duties since it happens regularly as departments evolve. In response to Mayor Pro Tem Ridgeway's question, Ms. Livingston indicated that the HR Analyst position should be budgeted if only one position could be funded. Council Member Bromberg stated that he understands how human resource networks work because he has a litigation/employment law practice and indicated that the Achilles heel for any organization is a weak human resources department. He added that the trend over the years for major corporations has been to downsize human resources and bring in less qualified people. Assistant City Attorney Clauson reported that the City Attorney Department budget is basically the same as last year's and that the department still has three attorneys and two secretaries. Regarding Account 8080, she indicated that this was previously used for specialized legal advice; however, it was increased last year and this year to accommodate additional expenditures for legal issues that arose from the Consent Decree with the County on the John Wayne Airport (JWA) issue and settlement agreement extension. Mr. Danner distributed an organizational chart of the Administrative Services Department which is made up of the Administrative, Fiscal Services, Management Information Systems (MIS), Revenue, and Accounting Divisions. He reported that the department has 49 full -time employees and five or six part -time employees. He noted that he is not requesting any new employees and emphasized that, since the reductions in the mid- 1990s, it has been a struggle to get up to where they think they have the right number of people. Mr. Danner reported that the two major things that are facing the department over the next fiscal year is the new accounting software and the implementation of the Governmental Accounting Standard Board (GASB) Statement 34 which completely changes the way the City does its accounting and financial reporting. He noted that they did not ask for extra funding for GASB 34 in the proposed budget, but Item 17 on the regular agenda does request funding for this year in order to issue a contract. He believed that this is probably all that is needed to implement GASB 34. Regarding the Fiscal Services Division, Mr. Danner reported that Account 8030 pays for the maintenance and repair of all the printing machines, remittance processing machines, and equipment at the warehouse; Account 8070 pays for the rental of copier and printing equipment that the City does not own; and Account 8140 pays primarily for paper. Regarding the MIS Division, Account 8030 pays for repair and maintenance of all the City's computer equipment, except for what is budgeted separately in the Police Department; Account 8110 pays the telephone bills; and Account 8200 pays for computer - related supplies. Regarding the Revenue Division, Account 8050 pays for postage on the billings; Account 8080 pays for contingency audits, and sales tax and property tax analysis services; and Account 8140 Volume 54 - Page 260 City of Newport Beach Study Session Minutes May 22, 2001 INDEX pays for all of the specialized billing forms. Regarding the Accounting Division, Account 8076 pays for extra help, especially during the audit period; and Account 8077 pays for the City's annual audit. Mr. Danner reported that the three CIP projects that they are responsible for are the development services software (permit system); the Citywide document imaging system; and the telephone replacement and upgrade. In response to Council Member Glover's questions, Mr. Danner believed that the document imaging system is successful and that the departments that are using the system are happy with it. City Clerk Harkless reported that her office received the initial installation of the document imaging system and that it is still an ongoing process. She stated that Council packets from August 1998; and ordinances, resolutions, and minutes from incorporation are available online, as well as on the internet. She added that her office is starting to work on scanning the deeds into the system. She indicated that the Fire Department, Revenue Division, Building Department, and Police Department are using the document imaging system. Mayor Pro Tern Ridgeway stated that he would like to have all of the Planning Department's files inputted onto the system. Ms. Harkless indicated that her staff scans documents in their spare time, but the Police Department hired someone full -time to scan documents. She added that staffing takes up the biggest expense and time for the departments using the document imaging system. Mr. Bludau agreed that the system has been very successful and that it would benefit departments, like Planning and Building, who have a great deal of records and files. Police Chief McDonell utilized a PowerPoint presentation and reported that the Police Department budget totals $27.4 million. He stated that the $908,000 increase reflects Council- approved MOU salary increases. He pointed out that two Police Officer positions in patrol and traffic are being funded by grants to offset some of the costs associated with the pending annexations and that the traffic officer was funded this year, which only created a partial impact on the proposed budget. He indicated that 83.1% of the total budget is related to salaries and benefits, 15% is for maintenance and operations ($4.1 million); less than 1% is for capital outlay ($15,000); and 1.7% is for other funds ($166,000). He stated that the budget is divided into divisions, with most of it being devoted to field- related services. He indicated that the adjustments that were approved during the City Manager review process were based on contractual obligations. Noting that Account 8080 contains no additional funding for consultants, Chief McDonell reported that it does provide funding for crossing guards, California Highway Patrol and Sheriffs assistance for July Fourth, the homeless shelter contract, the Cal -ID system, building maintenance, blood testing, and physical exams. He emphasized that the department has no significant program changes and that the maintenance and operations budget and capital outlay budget are flat when compared to last year. He further reviewed the programs associated with the Chief of Police Office, Support Services Division, Patrol Division, Traffic Division, and Detective Division. He added that they have done a good job of using civilians in the Police Department. Volume 54 - Page 261 City of Newport Beach Study Session Minutes May 22, 2001 INDEX Chief McDonell reported that they have received about $3.7 million in Federal and regional grants since 1996. He indicated that the grants have been used to fund and upgrade the vehicle mobile -data computers, provide an automated report writing system, purchase ten laser radar units for speed enforcement, provide technology to capture citation and field interview data and download it into the databanks to print citations, purchase a fingerprinting device for juvenile detainees, develop programs that provide greater technology to law enforcement, civilianize the crime scene function and establish a civilian crime analyst position, establish a records management system, and pay for one motor officer, ten police officers over a three year period, two community service officers, one crime scene investigator, one dispatcher, one non -sworn crime prevention specialist, and two sworn police officers in the crime suppression unit. In response to Council Member O'Neil's questions, Chief McDonell stated that rolling blackouts may have an impact in the department's overtime and that they can only plan for them like any other emergency. Mr. Bludau added that it could be handled better if the City were given advanced warning. Fire Chief Riley stated that the Fire Department's total budget for this year is $18,805,394 which is a $1,553,898 (3.5 %) increase from the previous year. He pointed out that the budget does include the addition of a fire station in the airport area. He reported that the six divisions of the department are Fire Administration, Emergency Operations, Fire Prevention, Emergency Medical Services Management, Training and Education, and Ocean Safety/Lifeguard. He stated that there are 136 full -time employees and there will be about 180 seasonal employees to manage the City's beach activities. He indicated that 84.2% of the budget is for personnel costs; 14.9% is for maintenance and operations; and 0.75% is for capital outlay. Chief Riley reported that the overtime cost is broken down into three categories: vacation/relief, uncontrolled absences, and planned overtime. He stated that, in the early 1990s, the Fire Department conducted overtime studies to see if there was a way to hire supplemental staffing. It was determined, at that time, that utilizing overtime to cover vacations and uncontrolled absences was a more economical way to provide staffing for vacancies. He added that the current overtime system was established through the deletion of ten full -time employees. He stated that, with the increase in the number of new employees, overtime costs will continue to decrease and remain a viable, cost effective means to provide coverage. He pointed out that, if there was no overtime for the fire station near the airport, the overtime budget would only increase 1.22 %. Chief Riley stated that the significant increases are due to the establishment of an airport fire station; new firefighter induction costs; the hiring of a contract grant writer; the MetroNet Fire Communications System; the joint training program with Fountain Valley and Huntington Beach; the new medical equipment for the paramedic program; and the junior lifeguard program. He pointed out that the annexation of Newport Coast is programmed for January 2002 and would add a fire station and a position to the fire prevention program, which would total about $1.245 million. Volume 54 - Page 262 i City of Newport Beach Study Session Minutes May 22, 2001 INDEX Regarding the turnover rate, Chief Riley stated that a large number of employees were hired in the 1960s and 1970s, and that today those employees are reaching retirement age. He stated that there will be an increase in retirement and that a 50% turnover rate is expected over the next five to six years. He added that Newport Beach is a destination department in which firefighters want to stay for the duration of their career. Regarding salaries, Chief Riley stated that the labor relations team compares the City's salaries with other cities as part of the negotiation process. Council has historically kept the salaries of the City's Fire and Police employees relatively high compared to others in the County and indicated that the Fire Department is one of the top five paid agencies in the County. Regarding the fire station in the airport area, Chief Riley indicated that they are still evaluating potential sites for a permanent fire station and that they assumed Council would want to wait until it could be built within the City limits. He indicated that the budget only reflects operational costs, not land purchase or development costs. Mayor Pro Tem Ridgeway expressed concern that this is not budgeted at this time as a CIP. Assistant City Manager Kiff reported that the costs are programmed into the fiscal impact analysis and that it will show up in the 2002 -2003 budget. Chief Riley added that there are a lot of things that are programmed for expenditure upon annexation. When Newport Coast is annexed, there will be a tremendous amount of things that will show up in January that will need to be discussed with Council. Mr. Bludau stated that they are not sure what the land will cost or when the annexation will happen. Mayor Pro Tem Ridgeway believed that the fire station is a current issue and not an annexation issue. Chief Riley stated that he assumed that Council did not want to acquire property or begin the development of a fire station until after the annexation is completed. He noted that the fire station is on a temporary site with a two year lease. If annexation did not happen, he stated that Council may decide not to have a fire station in that area. He added that they are also counting on significant revenue from Newport Coast to help offset the cost for this type of activity. Mayor Pro Tem Ridgeway requested that the purchase of the property be included on his wish list. Planning Director Temple stated that the Planning Department budget is the same in most areas as last year's budget. She reported that the Planning Department consists of Administration/Planning, and the Economic Development Division. She indicated that there are 18 full -time employees and one part -time employee, and that, of the 18 full -time employees, 15 are in Administration/Planning and two of those are clerical support staff. The 13 employees provide advanced planning, current planning, and code enforcement services for the City, and support for the Planning Commission. She stated that the three Economic Development staff include one clerical staff member and two professional positions to staff all the economic development activities and the Community Development Block Grant administration. She added that the two employees report directly to Assistant City Manager Wood. Ms. Temple noted that staffing also includes two new positions (Senior Planner and Assistant Planner) Volume 54 - Page 263 City of Newport Beach Study Session Minutes May 22, 2001 INDEX which were approved in the 2000 -2001 budget; however, two vacancies still exist in the department. She added that the budget does not include any new positions. Ms. Temple reported that 74% of the budget is for salaries and benefits; and 26% is for operations and capital outlay. She indicated that this proportion represents a notable departure from prior budget years when about 90% of the budget was devoted to personnel costs. This is due to the addition of significant projects into the operations budget which are contained mostly in Account 8080. She added that these also provide for large pending projects (General Plan Update consultant and budgetary support for the new Citywide sign regulations) for the upcoming fiscal year. Ms. Temple stated that they boosted their discretionary funds in Account 8080 from about $16,000 to $35,000. She explained that occasionally a special project will need consultant assistance to respond to Council requests and that they do not intend to spend that money just because it is there. She believed that having some moneys identified for unanticipated special studies is appropriate in the Planning Department. Ms. Temple reported that, in the Administration/Planning Division, they included more in the capital outlay budget to help upgrade some of the older computers. Regarding Account 8250 (special departmental expense), she explained that this represents the Planning Commission's stipend of $60 per meeting and is also used to match the amount the City's business improvement districts assess themselves. She reported that the economic development budget is status quo from this and prior budget years, but pointed out that Account 8060 (publications and dues) covers the cost of membership in the Orange County Business Council. In response to Mayor Pro Tern Ridgeway's questions regarding document imaging, Ms. Temple reported that the department's filing system is fairly complex. She indicated that getting the use permits on the system is certainly a priority, but in order for the files to be used they have to be organized and indexed carefully. She stated that, in anticipation of using the system, they have first been working on the structure of the files and the numbering system to make it easier for people to find what they are looking for. Further, single projects may be related to other projects that may involve multiple applications like general plan amendments, zoning amendments, use permits, development agreements, and environmental impact reports. She added that they also have D and E size sheets in their file and that they would need to contract out, like the Building Department currently does, to have those scanned. Ms. Temple reported that the Building Department also charges a microfiche fee and copying fee to cover their expenses. The Planning Department has never charged any type of microfiche fee as part of the application fee, but they may need to look into this. She stated that the department also has a large cabinet with old microfiche that would need to be contracted out to include in the system. Further, since their files tier one upon the other, the utility of the new applications and files may not be as effective if the old files are not scanned. Ms. Temple indicated that they were slotted to be the second department to implement the system, but they have been so busy and do not have the staff resources to do it right now. Mayor Pro Tom Ridgeway stated that almost 90% of the cities he works in charges an application fee for microfiching. He suggested indexing the files by address and believed it is an opportune time Volume 54 - Page 264 City of Newport Beach Study Session Minutes May 22, 2001 INDEX to start imaging using the current files, rather than just using a filing folder. Ms. Temple reported that they have an internal committee that is looking at all of these issues when they have the time in order to develop the indexing and management system. She indicated that they currently index the files by address, applicant, GIS number, assessor parcel number, and a variety of other ways. In response to Council Member Proctor's question regarding the 12% increase in the budget, Ms. Temple explained that, in prior years, many of the large planning studies were placed in the CIP; however, this year, the substantial increase is included in the departmental budget (Account 8080). She pointed out that the account was previously amended from $16,000 by making shifts from salary savings into that account to cover the Housing Element Update and another study. PUBLIC COMMENTS - None. ADJOURNMENT - 5:50 p.m. The agenda for the Study Session was posted on May 2, 2001, at 3:25 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary ♦.A Mayor City Clerk ar ,4 3 Volume 54 - Page 265