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City Council Minutes
City Council Special Meeting - 2012 Planning Session
Newport Beach Central Library - Friends Room
1000 Avocado Avenue
Newport Beach, CA 92660
January 23, 2012 — 6:00 p.m.
1. WELCOME
Roll Call by City Clerk Brown
Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tern Curry, Mayor
Gardner, Council Member Selich, Council Member Daigle
Council Member Henn arrived at 6:09 p.m.
Pledge of Allegiance - Council Member Curry
Call the Meeting to Order
Mayor Gardner welcomed everyone in attendance. She noted the importance of the planning
session, stated that staff will be coming back with details about timelines and specific projects
at a future Council meeting, and pointed out that the City should be flexible with its goals.
Comments from the Public on Non - agenda Items
Jim Mosher discussed the Special Meeting Notice and expressed hope that next year's meeting
will be televised.
Frank Peters expressed hope that the City will improve bike safety.
Karen Jacobi asked if Council will be discussing the reduction of driving lanes on Coast
Highway and MacArthur Boulevard.
Robert Hawkins received confirmation that public comments will be taken relative to the
priorities set in 2010 and 2011 (Item 3).
2. REVIEW WORKSHOP AGENDA
Jan Perkins, Meeting Facilitator, reviewed the planning session agenda.
3. REVIEW STATUS OF PRIORITIES SET IN 2010 AND 2011
City Manager Kiff utilized a PowerPoint presentation to discuss the 2010 fiscal sustainability
goals (protect and enhance the City's quality of life; fiscal sustainability; effective management;
economic sustainability; environmental sustainability; and community enhancement). He also
reported on the 2011 generational planning goals (aviation; neighborhood revitalization;
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tidelands management; fiscal sustainability issues; and City Hall construction)
4. FISCAL OUTLOOK
Finance Director McCraner stated that the City is midway through Fiscal Year 2012 and
indicated that the City is on budget. She reported that the General Fund budget is about $150
million; the top three revenue sources for the City (property tax, sales tax, and Transient
Occupancy Tax) are estimated to be $1.5 million over the revenue budget estimate; and that the
departments have reduced their budgets by $8 million and.are reporting that they will meet the
budget expenditure estimates, are trying to come in under budget, and may possibly come in
with a $1 million savings.
Mayor Pro Tem Curry encouraged the City to continue doing what it has been doing to keep
Newport Beach fiscally sound. He stated that this is also an opportunity to look at other large
projects, such as Sunset Ridge Park, Marina Park, dredging, the IT Strategic Plan, and the
neighborhood revitalization projects, and find out how to fund all the projects without deviating
from the City's strong fiscal stance.
City Manager Kiff indicated that the City is cautiously optimistic for a gradual recovery in light
of what is happening with the current economic trends. He stated that the key areas to watch
for the City include pension issues, labor negotiations, and any State budget impacts.
Robert Hawkins requested clarification about reducing fire hazards in Buck Gully (2010 Goal
No. 6). Acting Fire Chief Restadius reported that a PowerPoint presentation will be used at
tomorrow's Study Session to highlight the map and discuss the reasons for having a Very High
Fire Hazard Severity Zone (VHFHSZ).
5. PRIORITY EFFORTS FOR 2012
City Manager Kiff noted that he divided up the 2012 priorities into five categories: 1)
construction projects, 2) agreements to be completed, 3) further decisions that need to be made,
4) internal and external actions, and 5) allowances for unforeseen projects.
Construction Projects
Current Projects:
Maintaining streets, sidewalks, etc.
Lower Bay Dredging
Sunset Ridge Park
Marina Park
Civic Center and Park Project and the move
Jamboree Road widening
Some of the 2011 revitalization projects
Potential Future Projects:
Harbor and tidelands projects
West Newport Beach Facilities review
Update of the Facilities Financing Plan (FFP)
Revitalization ideas /studies for Balboa Village and Lido Marina Village
Agreements to be Completed
JWA Settlement Agreement Extension
Determination about the old City Hall site
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Oil facilities
Labor agreements
Further Decisions that Need to be Made
Budget
General Fund Capital Improvement Plan (CIP)
Review of reserve levels
NBTV
City Charter
Group Residential Uses
Internal and External Actions (Good to Great)
Shared services
City's Information Technology (IT)
Residential Trash Collection
Law Enforcement
Fire Department
Facility Management
Other Issues
Fire Rings
Smoking ban in parks and by the beach
Chickens
Urban Forest and City Council Policy G -1
Any other items that cannot be predicted
In response to ;Mayor Gardner's questions regarding the work of the Tidelands Management
Committee and th Neighborhood Revitalization Committee, City Manager Kiff noted that the
committees' suggestions will go before the City Council for consideration and prioritization.
Further, he noted that more study needs to occur in Balboa Village and Lido Marina Village.
Regarding her questions relative to the Semeniuk Slough, City Manager Kiff stated that half
the area is operated by the U.S. Army Corps of Engineers and the other half is operated by the
City, so it does not make sense to dredge the City's area until the Corps dredges. However, the
City could budget for it if it was the desire of the City Council.
Mayor Gardner requested that, when this comes back to Council, that the departments that
would be involved with the projects be identified in order to assist with prioritizing the projects.
Regarding the CIP, Council Member Daigle indicated that she hopes that Council will be more
involved earlier in the process relative to which CIP projects will be moving forward. City
Manager Kiff stated that he will be bringing a report back to Council on February 14 with a
timeline or plan for all the 2012 priorities.
Regarding reserves, Council Member Henn noted that the Finance Committee reviews reserve
levels every year to ensure they comply with Council Policy F -2. City Manager Kiff indicated
that there may be a desire by Council to amend the policy that governs reserve levels.
Council Member Henn noted that three of the five projects identified by the revitalization
groups have been completed and the other two should be completed in 2012. He reported that
the revitalization groups indicated that they might want to look at other items after the five
items are completed, but expressed concern about resources. He stated that potential
additional projects include Mariner's Mile and the consideration of adding the area between
22nd Street to Balboa Village to the landscaping design. Council Member Rosansky believed
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that Old Newport Boulevard from Coast Highway to 15th Street should also be looked at by the
revitalization group.
In response to Council Member Henn's questions regarding next year's budget, City Manager
Kiff stated that the City will continue the process of having a budget target and believed that
the City can still accomplish the fiscal sustainability process by having a lower reduction
target. He emphasized that the focus will be placed more on being efficient even if that includes
sharing resources or outsourcing.
Council Member Selich asked when Tidelands fees will be considered and believed that this
effort needs more attention. He also recommended applying for the Department of Boating and
Waterways Loans now for the Marina Park project since it could take a long time to receive the
loan. City Manager Kiff stated that he considered this to be under the Tidelands Funding Plan,
but is something that can be its own category. He added that he expects something to come
before Council on this in February.
Council Member Daigle asked for the status of the John Wayne Gulch project. City Manager
Kiff stated that the project has not been budgeted, but the City could possibly look at applying
for grant money. Council Member Daigle suggested also looking at the settlement fund.
Council Member Hill divided the priorities into two categories: 1) the need to determine capital
spending as the next step, and 2) prioritizing the next round of sites.
Council Member Curry stated that the City also needs to consider the priority list as a whole
and consider the revenue potential. He recommended looking at the Facilities Finance Plan,
revenues, the possibility of using reserves if needed, and the timeline for the priorities. He
pointed out that it will cost about $8 million to complete the IT Strategic Plan and that this
needs to be made a priority for the City since it drives the efficiency for the entire organization.
City Manager Kiff reported that the issue of prohibiting smoking in parks will be before Council
tomorrow night, the chicken issue has not been calendared on an agenda yet, the fire ring issue
will be going before the Parks, Beaches and Recreation Commission on February 7, and that
urban forest issues and City Council Policy G -1 will go before Council later in 2012.
Tom Billings believed that Marina Park should be a park even if there is no marina and that
this park should be moved to the top of the priority list. He thanked Council for moving
forward with the Lido Village revitalization efforts and for the City's continued commitment
relative to group residential uses. City Manager Kiff emphasized that the entire City Council
has assisted in the efforts to get the Marina Park project completed and reported that the
project will be going before the Coastal Commission in April or May. Council Member Selich
also noted that the project has been delayed because the State Lands Commission needed to
agree on the new tidelands line.
Dennis Baker asked for a discussion about signal synchronization and clarification about
parking in West Corona del Mar. Mayor Gardner indicated that the Lido Marina Village and
Balboa Village studies will give the foundation for City parking and help Corona del Mar's
efforts. Public Works Director Badum provided the status of the signal synchronization
program and the eight phases, noted that signal timing will initially be changed due to
pedestrian use, and stated that City staff can monitor traffic flow from the traffic operation
center at City Hall even during special events, change of season, etc.
Dan Purcell discussed refuse services and suggested looking at the issue as a whole. He also
suggested undergrounding the alleys to make the alleys more livable. He commented that there
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are no women on the Planning Commission
Robert Hawkins noted that the Banning Ranch project was not included on the priority list,
believed that Mariner's Mile should be the next study area for revitalization, requested
clarification regarding reserves, and believed that the City should prioritize which shared
services will be conducted and that the City should not be a vendor to other entities. He also
believed that City Council Policy G -1 should be reviewed by the Parks, Beaches and Recreation
Commission first. City Manager Kiff reported that Banning Ranch was not placed as a priority
since it is an application that will be coming before the City Council. He pointed out that the
City has 30 to 40 different types of reserve accounts, some of which are General Fund reserves,
but it depends on the funding source. He added that the annual budget includes a section
relative to reserves and confirmed that City Council Policy G -1 will go before the Parks,
Beaches and Recreation Commission before it is brought before Council.
Karen Jacobi requested clarification about the elimination of street parking along Pacific Coast
Highway and MacArthur Boulevard, and expressed concern about making an entrance into the
new City Hall from San Miguel. Mayor Gardner indicated that the biggest issue about parking
in the commercial areas of Corona del Mar is how to improve it without impacting the
residents. Regarding San Miguel, Public Works Director Badum reported that a third left -turn
lane was added to improve traffic flow and indicated that the new Civic Center will only create
a minimum traffic impact to the area. He believed that the pedestrian bridge will also assist
with potential traffic issues.
Tony Petros asked the City Council to be mindful of issues that might come before Council that
might turn into a priority, such as the 19th Street Bridge and the end of the 55- Freeway issues.
He noted that the City will receive a lot of value for the investments made into revitalizing the
many areas.
Jim Mosher noted that the new City Hall will hold a lot of staff members and believed that the
City should make it a goal to not use as many outside consultants when staff is capable of
handling the work.
Laura Curran requested that the annual planning sessions be videotaped. She believed that a
priority for the City should be to have safer streets and increase the number of signalized
crosswalks. She expressed appreciation to the City For its continued commitment in dealing
with integral facilities, and requested that Council move forward with the implementation and
enforcement of the integral facilities ordinance on all integral facilities, including the facilities
in Corona del Mar.
6. WRAP UP AND NEXT STEPS
Council Member Daigle asked that the City have a discussion item that looks at Public Works'
delivery system, its internal resources, private sector resources, and the productivity of each of
the resources to see if there are opportunities to optimize the project delivery system.
City Manager Kiff stated, that hopefully at the February 14 City Council meeting, he will be
bringing back a work plan and draft timeline that would also include the priorities that were
added as "possibilities." He indicated that there are a lot of priorities and that a dialogue may
need to take place about what needs to be taken off the priorities list.
Mayor Gardner thanked everyone for attending and encouraged attendance at the February 14
City Council meeting.
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City Council Special Meeting Minutes
January 23, 2012
The meeting adjourned at 7:33 p.m.
The agenda for the Special Meeting was posted on January 19, 2012, at 4:35 p.m. on
the City Hall Bulletin Board located outside of the City of Newport Beach
Administrative Building.
n r/ I A, r
City Clerk
111n -
Recording Secretary
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