Loading...
HomeMy WebLinkAbout01/29/2022 - Special MeetingCITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) January 29, 2022 I. Call the Meeting to Order - 9:00 a.m. Roll Call: Present: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill Invocation - Council Member O'Neill Pledge of Allegiance - Council Member Brenner II. Public Comments on Non -Agenda Items Jim Mosher reminded Council that they voted to place a ballot measure on the June 2022 ballot and noted that there is still time to place a ballot measure on the November 2022 ballot to conduct by -district elections with instant runoff, ranked -choice voting. He also referenced a Stu News article about the Planning Session agenda and noted that conducting the invocation and pledge of allegiance at this type of meeting has only occurred since 2017 and discussed why he feels the invocation should be eliminated. III. Update on Financial Status City Manager Leung reported that the City has a strong financial planning process which has held well during both good and tough times, and noted that today is an opportunity to look at areas that allow the City to continue building its strong financial foundation. Finance Director Catlett utilized a presentation to provide an update regarding FY 2021-22 General Fund revenues and expenditures, discuss the budget surplus, review the FY 2022-23 preliminary revenue outlook, and review the top three revenue source projections for FY 2022-23: property tax, sales tax, and Transient Occupancy Tax (TOT). IV. Budget Development - Operating Budget Operating Budget Finance Director Catlett utilized a presentation to discuss the budget process timeline, public review of the budget, and operating budget pressures. Pension Funding Update Finance Director Catlett utilized a presentation to report on the current unfunded liability paydown strategy, the roll -forward of 2020 valuations to June 30, 2021, the impact of investment returns and additional payments, and staff pension funding recommendations. In response to Council questions, Finance Director Catlett indicated that the target paydown will occur in seven years and the City will have a zero balance, which has not occurred since 2005, confirmed the City currently pays at least $80 million annually to CAPERS, and commended the City on its strong financial shape. Volume 65 - Page 242 City of Newport Beach Planning Session (Special Meeting) January 29, 2022 Finance Director Catlett continued the presentation to discuss infrastructure maintenance and replacement as it relates to the Facilities Financial Plan (FFP) and Harbor and Beaches Master Plan; and highlighted historical and recommended program funding levels. Council Member O'Neill noted that this will be coming back to Council after the Finance Committee reviews it. Council Member Brenner requested and received confirmation from City Attorney Harp that Council Members may attend Finance Committee meetings, but cannot participate. Council Member Dixon indicated that, when the FFP returns to Council, she would like to see how the balance changed over the years, as she suspects the FFP is at its lowest due to key projects that have been approved. She noted the FFP was created 15 years ago and is an excellent planning tool, but pointed out that large projects will be coming forward in the next ten years. Service Needs Police Chief Lewis and Deputy Director Stafford utilized a presentation to discuss the proposed Police Department equipment upgrades related to body worn cameras and taser replacements, and reported that using body cameras could assist the City and Police Department with transparency and decrease liability. In response to Council questions, Police Chief Lewis and Deputy Director Stafford discussed the body camera pilot program, noted that labor groups were involved in the change, and explained that the proposed budget includes the equipment, unlimited storage for the recordings, and additional staffing. City Manager Leung indicated that she will be evaluating the entire organization relative to departmental staffing requests. Police Chief Lewis indicated that over 75% of Orange County cities use body cameras, but vary in the degree of technology in the field, and the Police Department thinks it is better to have both vehicle and body cameras. He added that the cameras also assist with verifying officers' stories and public complaints. Regarding the taser replacement request, he reported the current tasers are out of warranty, sometimes just seeing a taser is a deterrent, and the new technology will allow officers to deploy the taser from a greater distance and with more accuracy. He further reviewed the training program and distinctions between the taser and firearm. Homeless Services and Initiatives Assistant City Manager Finnigan and Homeless Liaison Basmaciyan utilized a presentation to summarize the many outreach programs currently being offered to the homeless population. In response to Council questions, Assistant City Manager Finnigan and Homeless Liaison Basmaciyan discussed promoting newportbeachca.gov/goodgiving more and what the funds have been used for, current shelter usage, how COVID-19 has affected the shelter and the City's ability to enforce its anti - camping ordinance, whether the current bed count at the shelter is sufficient but may need to be revisited when the shelter reopens, and other options outside of using the shelter, like hotel vouchers. City Attorney Harp clarified Los Angeles' current targeted approach and City Manager Leung assured everyone that the City's homeless team is making regular contacts with the homeless population, noted the City cannot force them into certain actions, and expressed the importance of finding long-term solutions. Council Member Brenner stated that everyone needs to understand how much is in the works and how much work the City has done to assist the homeless population, noting that the issue will not be solved unless something changes in the country. In response to her concern relative to people who may pose a danger to the public, City Attorney Harp and Police Chief Lewis reviewed the options but indicated that, depending on the charge, consequences and outcomes are limited. Council Member Avery commended the Be Well program and received confirmation from Assistant City Manager Finnigan that the budget covers staffing. Volume 65 - Page 243 City of Newport Beach Planning Session (Special Meeting) January 29, 2022 Assistant City Manager Finnigan continued the presentation to review the proposed $2.76 million budget associated with homeless services and initiatives. Council Member O'Neill pointed out that, just a few years ago, the City did not have any of these services and programs, but residents are feeling they are not seeing a difference, noted the City has between 20 to 90 homeless people, depending on the season, but Los Angeles County has about 80,000, which is almost the City's population, emphasized this is a regional issue, assured everyone that the City cannot tolerate people living on the streets permanently, expressed concern that tents are a sign of permanence, and requested that people utilize the City options and opportunities to give since the City has access to resources. In response to Council Member Dixon's question, Homeless Liaison Basmaciyan discussed housing vouchers and City Manager Leung reported that the City has not had the interest from motel owners to be purchased by the City. Council Member Brenner agreed that this topic can be discussed for days, but pertinent to today's discussion, is that the residents are saying to spend the money needed to take care of this problem and suggested that a public/private partnership develop to assist the City in finding land to build permanent supportive housing. City Manager Leung reported that affordable housing developers have been looking for sites for the past 1.5 years, but it has been a challenge. Council Member Dixon suggested looking at unincorporated areas in the County. Staffing City Manager Leung utilized a presentation to discuss staff retention and managing workload demands. Council Member O'Neill noted that, just 18 months ago, the City had hiring freezes, deferred projects, and was unsure if it could make its unfunded liability payments; however, in light of the current budget situation, he stated that now is the time the City has the ability to invest in the future. He pointed out that, when the unfunded liability payment is exhausted and the balance is zero, there will be about $40 million annually that will be freed up for future Councils to allocate. Mayor Muldoon thanked past and present Finance Committee members. Jim Mosher questioned whether the Ad Hoc Committee on Homeless Task Force should be sunsetted or turned into a standing committee that holds public meetings, stated that development agreement funds are not intended to be gifts for existing residents but are supposed to be used to assist with the needs created by the new development, indicated that the Water Master Plan and Wastewater Master Plan receive less attention than the other master plans, and discussed the articles in Stu News regarding the changes to the Newport Beach Marriott Hotel and Spa (soon to become VEA Newport Beach), noting it is within the Coastal Zone and the City is responsible for obtaining a Coastal Development Permit. Discussion ensued by and between Mayor Muldoon and City Attorney Harp regarding the shelter, enforcement of the anti -camping ordinance, and when it would be appropriate to sunset the Ad Hoc Committee on Homeless Task Force. City Attorney Harp added that he will look into whether the committee has completed all its tasks. V. Budget Development — Capital Improvement Program (CIP) City Attorney Harp announced that Council Member Brenner would be recusing herself during discussions relative to the Storm Drain System Project due to real property interest conflicts, Mayor Pro Tem Blom would be recusing himself during discussions relative to the Balboa Island Drainage System Project due to real property interest conflicts; and Mayor Muldoon would be recusing himself during discussions relative to the Boys and Girls Club Project out of an abundance of caution due to real property interest conflicts, and the Sunset View Park Pedestrian Bridge Project, the Fire Station No. 2 Project, and any streetlight and traffic light project due to potential business interest conflicts. Volume 65 - Page 244 City of Newport Beach Planning Session (Special Meeting) January 29, 2022 Public Works Director Webb and Deputy Public Works Director Houlihan utilized a presentation to review the proposed $86 million CIP budget, surplus fund recommendations to assist with FFP projects, and highlight the Balboa Peninsula Fire Station and Branch Library replacement project. Council Member Dixon suggested adding more parking to the project. Public Works Director Webb reviewed planned facility projects, including the Bonita Creek Park synthetic turf replacement, Police facility replacement and land purchase, and Santa Barbara Fire Station replacement; and neighborhood enhancement projects, including the Balboa Island drainage improvement project and the backlog for street pavement rehabilitation. In response to Council questions, Public Works Director Webb explained the current project on Coast Highway in Corona del Mar, reviewed the list of neighborhood enhancement and CIP projects that total $15.5 million, and stated that the future Balboa Island street replacement project is expensive and might be done by using the money that was once used for the unfunded liability payments. Council Member Dixon commended staff for also securing grants from external sources to assist with funding CIP projects. Public Works Director Webb continued the presentation to discuss the General Plan Update project, City park assessment and replacement/rehabilitation study, and various neighborhood enhancement projects. Recreation and Senior Services Director Detweiler reported that there are 65 parks in the City. Council Member Avery requested that the City also consider fixing smaller areas that need repairs, noted areas around Newport Harbor High School and landscaping by the trailer park as you head towards Huntington Beach, as it builds value in the community. Public Works Director Webb continued the presentation to discuss the possibility of using the $10.1 million of American Rescue Plan Act (A -RPA) Funds toward the City's share of the Central Library Lecture Hall Project and Junior Lifeguard Building and Parking Lot Improvements. He also discussed City facilities that will require consideration and/or direction in the future, such as the Balboa Yacht Basin. In response to Council Member Dixon's questions, Public Works Director Webb reviewed the history of the Balboa Yacht Basin, noted the buildings on the site are on the FFP, but are not currently funded, the slips and dredging are in the Harbor and Beaches Master Plan, remodeling the apartments is not an immediate need but the City can probably gain more revenue from them, and there are other options that can be considered for the area. Council Member Brenner requested that the Galley Restaurant maintain its historical charm when refurbished, similar to what was done to the Crab Cooker. Mayor Pro Tem Blom suggested that discussions about what to do with the Balboa Yacht Bdsin area first go before the Finance Committee. Public Works Director Webb utilized a presentation to discuss the needs relative to the Corporation Yard Fueling Facilities and Wash Racks, fueling and siting challenges, and project funding and scheduling for the fleet fueling improvements. In response to Council questions, Public Works Director Webb indicated that a clean energy discussion should take place with Council, the electric vehicle mandate begins in 2025 but does not require the City to replace its current fleet immediately, confirmed that State funding may be available but it is unclear how it will be distributed, and stated the City may have other options for the fuel station, such as using the private market. Public Works Director Webb continued the presentation to discuss the Newport Pier/McFadden Plaza area rehabilitation concept, the demolition of the existing restaurant on the pier, and the project status. Volume 65 - Page 245 City of Newport Beach Planning Session (Special Meeting) January 29, 2022 In response to Council Member Brenner's questions, City Manager Leung reported that the City currently set aside $1 million of General Fund money toward homeless issues, Council previously directed staff to look at using development agreement funds for Regional Housing Needs Assessment (RHNA) infrastructure needs but a study will be coming back to Council, indicated staff needs direction on how to appropriate the surplus funds for the coming budget, and reviewed the purpose of the Water and Wastewater Fund, but stated a sewer rate adjustment may be needed. Council Member Dixon expressed support for the projects on the $15.5 million neighborhood enhancement and CIP list, and suggested creating an incentive program for residents to build Accessory Dwelling Units (ADUs) or a program to offset the permit fees, which would also assist with affordable housing. Community Development Director Jurjis reported that the City Council already approved waiving all permit fees for ADUs, indicated that staff is working on updating the ADU website and standard plans, stated they are looking into some type of finance program or loan program, but need more information or direction from Council, and indicated they can look at whether other agencies have loan programs. Council Member Brenner asked that staff also look at ways to incentivize residents to make existing ADUs conforming. Nancy Scarbrough indicated that she previously suggested identifying non -conforming ADUs and creating a loan program which will be paid back to the City when the property is paid off or transferred. Charles Klobe stated that he is not a proponent of selling any City land and suggested that the City lease the land instead. Martin Colver provided a handout and requested that Council consider extending the bike path that ends at 36th Street so bikers are not riding behind the garages on Seashore Drive. Paul Watkins stated his support for the Balboa Library and Fire Station replacement projects, as well as the Library Lecture Hall project; however, he is not in favor of extending the bike path and provided the background relative to this suggestion. Without objection, Public Works Director Webb received confirmation for the following: • Having the Finance Committee conduct the initial review of the Balboa Yacht Basin project • Proceeding with developing an electric vehicle policy • Including the Balboa Library and Fire Station replacement projects in the budget Unanimous straw votes were received for the following: • Support for the $15.5 million project list • Using the ARPA funds toward the Library Lecture Hall and Junior Lifeguard Building projects • Having a Council subcommittee look at purchasing land for the future Police Department headquarters VI. Adjournment - 11:53 a.m. The special meeting agenda was posted on the City's website and on the City Hall electronic bulletin board located in the entrance of the City Counci Chars at 100 C' * Center Drive on January 26 2022 at 11:30 a.m. Kevin M Mayor / Leilani I. Brown C �s;„ d•;77p. City Clerk ��r�oEl % Volume 65 - Page 246