Loading...
HomeMy WebLinkAbout01/28/2023 - Special MeetingCITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) January 28, 2023 I. Call the Meeting to Order - 9:00 a.m. Roll Call Present: Mayor Noah Blom, Mayor Pro Tem Will O'Neill, Council Member Brad Avery, Council Member Robyn Grant, Council Member Lauren Kleiman, Council Member Joe Stapleton, Council Member Erik Weigand Invocation - Mayor Pro Tem O'Neill Pledge of Allegiance - Council Member Stapleton II. Public Comments on Non -Agenda Items Jim Mosher noted that Council has not provided any direction, presentation handouts are not available, and there is no call -in option for public comment included on the agenda. Dennis Bress thanked City Manager Leung for the weekly newsletter and asked Council to consider an artificial intelligence tool for searchable meeting recordings. Lee Pearl provided a handout of the Balboa Island's wish list. III. Update on Financial Status and Budget Development Financial Status Finance Director Al -Imam utilized a presentation to provide a Fiscal Year (FY) 2021-22 General Fund budget surplus recap, highlight the Dove Street property purchase, discuss FY 2022-23 General Fund revenue, expenditure, and projected surplus, discuss the preliminary revenue outlook for FY 2023-24, and review the top three revenue source projections for FY 2023-24: property tax, sales tax, and Transient Occupancy Tax (TOT). Regarding the $10 million surplus, Mayor Pro Tem O'Neill clarified that $6.7 million will probably be allocated to purchase the land for the new Police Department and $3 million will be used to meet reserve targets. City Manager Leung confirmed that the first $10 million surplus is spoken for and will likely grow further to go towards long term liabilities and enhancement projects. In response to Council Member Stapleton's questions, City Manager Leung clarified that $3 million reserve funds is an estimate and Finance Director Al -Imam confirmed a 25% contingency of General Fund operating expenditures and discretionary payments to Ca1PERS, and noted that next year's budget is not set yet. Mayor Pro Tem O'Neill noted that the reserve policies will be reviewed, the City maintains a conservative three-year General Fund reserve for operating expenses, the City needed to dip slightly into the reserve during the pandemic, highlighted reasons for backing out discretionary amounts on top of the unfunded pension liability payments, and noted the 25% savings into reserves. Budget Development City Manager Leung and Finance Director Al -Imam utilized a presentation to discuss the budget process, timeline, public review of the budget, and the City's pension paydown strategy, roll -forward of valuations to June 30, 2022, staff pension funding recommendation, inflationary environment, recruitment and retention challenges, and staff retention and managing workload demands. Volume 65 - Page 480 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Mayor Pro Tem O'Neill highlighted the public's ability to review the budget, announced there will be an overview of revenue projections at the next Finance Committee meeting, noted the complexity of the City's budget, discussed the City's budget resiliency, and thanked all those participating in the budget process. Jim Mosher expressed the opinion that it would be helpful for the public to have the presentations posted in advance of the meeting, expressed surprise with the sales tax projection, questioned the employee contract adjustments, and discussed the Library Services Manager position. Dennis Bress expressed confusion relative to the unfunded pension liability amount and payback period, noted grant opportunities and use of the Coronavirus Aid, Relief, and Economic Security (CARES) Act money, encouraged the active pursuit of grant funding, and advocated to have Supervisor Katrina Foley's office assist with grant opportunities. Chuck Fancher expressed gratitude for the presentation and well -run City and recommended that the City have long-term capital infrastructure planning. Mayor Pro Tem O'Neill discussed the Facilities Financing Plan (FFP) and how funds are used. Mayor Blom relayed that staff actively searches for available funding, clarified that the sales tax projections are based on lower sales and higher prices across the sector, and noted the City maintains a conservative budget approach. Council Member Avery noted the potential infrastructure costs involved with drainage and pumps in the Harbor, beach flooding, increased weather intensity, and the need to protect homes and businesses. Mayor Pro Tem O'Neill concurred with Council Member Avery and suggested taking back more control of the Harbor from the County. IV. Continuing Initiatives General Plan Update Community Development Director Jurjis utilized a presentation to review the General Plan Update committee structure, Land Use Element schedule, and other related matters being worked on that currently do not have a deadline. In response to Mayor Pro Tem O'Neill's questions, Community Development Director Jurjis confirmed that a Greenlight vote is triggered by the number of housing units and explained the City's approach to simplifying the Environmental Impact Report (EIR) by having housing development overlay commercial square footage recognized in the General Plan. Homelessness Assistant City Manager Finnigan and Homeless Coordinator Basmaciyan utilized a presentation to discuss homeless strategies, review the City's response, the City's contracted services (Be Well OC Mobile Crisis Unit, City Net, and Costa Mesa Bridge Shelter), Countywide coordination, State and Federal programs, outreach statistics for 2022, and permanent supportive housing efforts. City Manager Leung discussed the amount of work being done, the need to do more, the complexity of the issue, short and long-term solutions, enforcement, additional shelter beds, permanent supportive housing, transportation sites, and continued focus on improving. Mayor Blom noted the serious and difficult nature of the problem, and pointed out that Newport Beach has done more than probably any city in the country. Volume 65 - Page 481 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Council Member Grant noted the amount of work and resources that the City has invested and the great strides being made, commended the balance between investment and outcome, the use of community - wide resources, and expressed interest in becoming more involved. In response to Council Member Weigand's questions, Assistant City Manager Finnigan and Homeless Coordinator Basmaciyan clarified that the Peninsula Enforcement Team is a group of Police Officers, reviewed the service hours for Be Well OC Mobile Crisis Unit, and noted that there is no count for the number of homeless sleeping in vehicles. Council Member Stapleton shared the compassion from the community for people experiencing homelessness, commended staff for their work, encouraged further effort, and noted success stories, but expressed concern for the bottle neck for permanent housing solutions, transportation center enforcement action, and vehicles parked on the westside of Newport Beach. He requested that staff continue to focus on the westside and expressed interest in being part of the leadership on the dais to continue a focused effort. In response to Council Member Grant's question, City Manager Leung relayed that there has been an extensive search for permanent supportive housing. Community Development Director Jurjis indicated that the City is working with affordable housing developers, offers and Letters of Intent (LOI) have been issued, and noted challenges relative to the high cost for land in the City. He proposed partnering with adjoining cities to find more affordable land. Council Member Kleiman commended staff for their work, expressed interest in how Council can support staffs efforts, asked that staff consider the County's role, and noted this is a priority for her. Mayor Pro Tem O'Neill acknowledged the work done by the City but stated there is still a long way to go, expressed excitement for ideas from the new Council Members, noted that the City's programming prevented a lawsuit against the City, recognized the strides in recent years, and noted his desire for continued improvement. Council Member Avery expressed optimism regarding the interest and fresh perspective of the new Council Members' on this subject, noted letters received from the community, and hoped that everyone understands that the problem must be managed over time. Mayor Blom appreciated a fresh look at the issue, believed the subject will be included in the Capital Improvement Program (CIP), noted the need for community support, and provided positive feedback from Balboa Island residents regarding the work being done by Trellis. John Wayne Airport Assistant City Manager Finnigan utilized a presentation to review the 1985 Settlement Agreement, consultant support, and Aviation Committee key priorities for 2023. Mayor Blom relayed the purpose and function of the Aviation Committee and noted the enforcement of City priorities through the Settlement Agreement and continued advocacy for the City's interests. Council Member Grant expressed support for and acknowledged Sue Dvorak, a City resident, for her representation on the Orange County Airport Commission. Mayor Blom recognized a more robust interest from the County with Sue Dvorak's involvement and encouraged community members to contact the County while the City narrows its focus and keeps a liaison relationship with Ms. Dvorak. In response to Council Member Weigand's question, Assistant City Manager Finnigan and City Attorney Harp confirmed that environmental justice related to airport noise and emissions has not been a leading effort at the Federal level and can be addressed in a future conversation with the Federal Aviation Administration (FAA). Volume 65 - Page 482 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Council Member Grant expressed optimism regarding the new Airport Director Charlene Reynolds. City's Legislative Platform Assistant City Manager Finnigan utilized a presentation to discuss the legislative platform, advocacy, update, and lobbyists. Council Member Weigand requested public safety, wildfire mitigation, human trafficking, sentence enhancements on fentanyl, and e-bike regulations be added. Mayor Pro Tem O'Neill suggested determining parameters for conversations between Council Members and advocacy consultants to ensure clear direction by Council. Council Member Kleiman supported an emphasis on public safety, residential care reform, the Visa Waiver Program, and funding for homelessness. In response to Council Member Weigand's question, City Manager Leung noted that the City applies for grants across departments and through lobbyists, but will look further into ways to identify funding opportunities. Assistant City Manager Finnigan indicated that the Fire Department contracts with a grant writer. Dennis Bress recognized the work of past and present Councils, suggested the City work with the County regarding the airport, noted aircraft flight departure corridor, times, noise reduction departure parameters, support from Supervisor Foley and Sue Dvorak, the Fly Friendly program to monitor and analyze jet departures, lowering the noise limits in the Settlement Agreement, and congratulated the homelessness team for their work. Dennis Baker inquired about a plan to address hygiene for the homeless and discussed airport emissions. Nancy Scarbrough discussed the new Housing Trust consisting of developers and Still Protecting Our Newport (SPON), final documentation for the Housing Trust, fundraising, grant applications at the County, State, and Federal levels to be used for purchasing property or providing low interest property loans for permanent supportive housing and affordable housing, collaboration with the City, and stated the first grant is underway. She reminded everyone that there are three parties that sign the Settlement Agreement and discussed additional research by SPON using a new attorney. Charles Klobe, SPON President, shared the Newport Beach Housing Trust website (www.newportbeachhousingtrust.org) and noted that Townsend Public Affairs can be contracted to obtain State grants. Jim Mosher expressed concern regarding direction provided to the Aviation Committee without a discussion within the Committee or with Council, acknowledged the regular updating of the homeless response statistics on the website, and relayed concern over unclear direction by Council to the General Plan Advisory Committee (GPAC), a cancelled Request for Proposal (RFP) for an outside consultant, and the number of housing units to be built in the City over the next eight years. Lee Pearl complimented the ideas provided by the new Council Members and suggested seeking funds to acquire the best technology for the City. In response to Council Member Weigand's suggestion, City Manager Leung indicated that the City will continue to search for grant opportunities. In response to Council Member Weigand's inquiry, City Attorney Harp indicated that environmental justice is a separate category that staff can look into. Mayor Blom suggested a straw vote to access general support to refine the priorities for the Aviation Committee. The straw vote was supported unanimously. Volume 65 - Page 483 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 V. Budget Development - Capital Improvement Program (CIP) City Clerk Brown announced she would be recusing herself and leaving the meeting during discussions relative to the McFadden Plaza Rehabilitation and Bike Path project due to real property interest conflicts. Mayor Blom announced he would be recusing himself and leaving the dais during discussions relative to the Balboa Island Drainage System project based on his interest in property located at 224 Marine Avenue. Public Works Director Webb and Deputy Public Works Director/City Engineer Houlihan utilized a presentation to discuss how new projects are selected for the CIP, display the Facilities Financing Plan (FFP), review the Lower Harbor Federal Channel Dredging project, Central Library Lecture Hall project, Balboa Island Drainage System project, 151h Street Beach Restroom Replacement project, Newport Bay Trash Wheel project, Balboa Peninsula Fire Station and Branch Library project, and McFadden Plaza Rehabilitation and Bike Path project, and provided information about the upcoming FY 2023-24 CIP. In response to Council Member Stapleton's question, Public Works Director Webb indicated that the City was awarded approximately $10 million from a grant for the dredging project and the City agreed to add $10 million to match it. Regarding the Central Library Lecture Hall project, Mayor Pro Tem O'Neill noted that project the will return to Council after the bids are received and expressed interest in Council previewing it, noted substantial cost increases, and ways to handle the project. In response to Council Member Weigand's question, Public Works Director Webb indicated that a policy decision will be needed to increase the 50/50 split arrangement, private funding is allowable, discussed time limits and boundaries on holding bids, grant funding opportunities, and the cost burden once the City is under contract. In response to Council Member Grant's questions, Public Works Director Webb relayed that the 50/50 split is for the $17.5 million all -in project cost, noted an increase in prices due to inflation, and discussed options for value engineering. Mayor Pro Tem O'Neill discussed options for this project, categorized the project as a "nice to have," and relayed his concern with the project costs. Council Member Avery expressed excitement for the project, suggested digging deeper and finding options to make it happen, and expressed optimism that the project will be completed. Council Member Stapleton thanked and commended Jill Johnson -Tucker for her efforts and noted being cautiously optimistic for better bids. Mayor Blom supported the project, noted the history of increased building costs and bids, the value of upgrading the general infrastructure for public benefit with a long-term goal, a history of development, growth, and investment in Newport Beach, and being aware of the costs. Mayor Pro Tem O'Neill noted the importance of the Balboa Island Drainage System project and, in response to his question, City Manager Leung confirmed that the project is funded by the General Fund. In response to Council Member Grant's question, Public Works Director Webb indicated that the same approach will be needed for Little Balboa Island. Council Member Avery noted that Balboa Island is expensive and suggested having residents contribute to the drainage, undergrounding, and seawall. Dennis Bress expressed excitement for the Balboa Island Drainage System project, thanked Council for listening to the people, noted that the residents paid $20,000 per home for underground utilities, and thanked staff for their work on Agate Avenue. Jim Mosher questioned whether the City will abandon the tide valves and suggested simplifying the drainage system through automation to make it more reliable. Linda Kensey asked Council to remember Little Balboa Island when planning. Chuck Fancher expressed gratitude for the Balboa Island Draining System project, expressed concern relative to the use of General Funds for the benefit of Balboa Island, noted. changes in the flood horizon schedule, climate and weather pattern changes, and the possibility for more water and flooding issues. Volume 65 - Page 484 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Public Works Director Webb clarified that the City's goal for the tide valves is to permanently seal them and direct the water through the underground drainage system. In response to Council Member Avery's question, Public Works Director Webb indicated that four pumps are in the new system and portable pumps can be added. In response to Council Member Stapleton's question regarding the 151h Street Beach Restroom project, Public Works Director Webb confirmed that there will be public outreach, recapped past conversations, and relayed the need for discussion on design elements. Mayor Blom noted community concerns that the City is going to build bathrooms for homeless residents and stated that the design should not convey this idea. Mayor Blom informed the public that the Newport Beach Trash Wheel project was former Council Member Duffy Duffield's project that he worked on for several years. Public Works Director Webb displayed the trash wheel location and picture of the log boom. Council Member Stapleton noted residents are eager to work with staff to discuss design concepts for the Balboa Peninsula Fire Station and Branch Library and, in response to his questions, Public Works Director Webb relayed an $8.5 million all -in cost for the new Peninsula Fire Station while the Corona del mar Fire Station cost approximately $7 million, discussed variables for the cost of the Balboa Peninsula Fire Station, the potential purpose and function of the library and tot lot playground, and next steps. Mayor Blom expressed the opinion that the project could emulate what has been done in Corona del Mar, noted discussions about switching the fire station and library locations, and acknowledged that the project may cost more than the Corona del Mar project. Regarding the McFadden Plaza Rehabilitation and Bike Path project, Mayor Blom relayed that the historical nature of the piers can be brought back while maintaining a robust infrastructure, preferred a reimagined pier to emulate the culture that established it, suggested a holistic approach to the project, and indicated that public input is needed at this stage. In response to Council Member Grant's question, Public Works Director Webb noted that the idea of replacing the restaurant at the end of the Newport Pier was community driven but is at the discretion of Council, stated that regulatory agency considerations need to also be taken into account in the Coastal Zone, and provided suggestions of how to move forward. Council Member Stapleton agreed with Mayor Blom's comments to provide a marquee venue at the pier. Council Member Avery believed this project is analogous on a smaller scale to the Fun Zone area, the pier needs to be reimagined, the pier should not visually dominate the area, the cost for the work on the pier will be high, the project will need to be phased over time, a draft sketch of the vision will be needed to keep the project alive, and opportunities for infrastructure could provide protection from big waves. Dennis Bress suggested adding a mobility plan at the pier and provided suggestions, noted challenges, and discussed opportunities for electric vehicle use. Nancy Scarbrough suggested long-term planning consideration to establish a community center in the westside of Newport Heights and the airport area. Carmen Rawson agreed with separating the bicycle and pedestrian trails in the McFadden Plaza area, but not the rest of the Peninsula, suggested sea level rise fees to fund protection from higher waves and peak tide effects, and recommended increasing the TOT fee by one percent to fund beach area flooding issues. Ken Rawson requested that the bicycle study for McFadden Square be modified to include the parking lot near the bike path coming from 361h Street and McFadden Square and the entire way down the boardwalk to Balboa Pier. He believed that stopping the study at 15th Street does not fully address the problem and would be a mistake. Volume 65 - Page 485 City of Newport Beach Planning Session (Special Meeting) January 28, 2023 Jim Mosher questioned whether the trees posted for removal at the Balboa Peninsula Fire Station and Branch Library properties are part of the CIP and if modeling was conducted to determine if Harbor dredging will improve the flushing around Newport Island. He discussed items from the January 29, 2022 Council meeting that received a unanimous vote, asked which projects happened and which did not, and expressed concern that the subcommittee to look at purchasing land for a future Police Department was appointed by staff instead of Council. VI. Adjournment — 12:27 p.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 Council Chambers at 100 Civic Center Drive on January 25, 2022 at 12:00 p.m. �i Leilani I. Brown City Clerk Volume 65 - Page 486