Loading...
HomeMy WebLinkAbout01/25/2014 - Special MeetingCity Council Minutes Special Meeting - 2014 Planning Session January 25, 2014 — 8:30 a.m. 1. WELCOME Roll Call by City Clerk Brown Present; Council Member Gardner, Council Member Petros, Mayor Pro Tem Selich, Mayor Hill, Council Member Curry, Council Member Henn, Council Member Daigle Comments from the Public on Non - Agenda Items Jim Mosher took issue that the meeting was not conducted in the Council Chambers and believed that the priorities should be community - driven. George Schroeder expressed the opinion that the Community Room provides a better atmosphere for this type of meeting. 2. REVIEW WORKSHOP AGENDA City Manager Kiff reviewed the Planning Session Agenda. 3. COUNCIL'S ADOPTED PRIORITIES FROM 2013 - RECAP City Manager Kiff utilized a PowerPoint presentation to provide a recap of 2013. He reported that the City ended the year with a significant surplus, Part One Crime is down again, the Civic Center was completed, and the old City Hall site was approved to become the Lido House Hotel. He reviewed the big projects that are underway (Sunset Ridge Park, Marina Park, the Lifeguard Headquarters remodel, Balboa Boulevard Landscaping, and Bristol South Landscaping); and discussed challenging decisions /actions conducted (Harbor rents, the outsourcing of residential refuse collection, and fire rings). He highlighted the handout entitled. "Priority Issues and Activities from 2013 - A January 2014 Update" and noted that most of the projects are in the workplan. Council Member Henn noted that the list of accomplishments is extraordinary considering today's fiscal environment. He believed that other cities can only dream of accomplishing the same list. He added that the accomplishments are ones that will benefit the City for generations. Council Member Gardner pointed out that the list was accomplished even though the number of employees has decreased. She stated that staff has created better efficiencies. At the request of Council Member Daigle, City Manager Kiff reviewed the John Wayne Airport (JWA) accomplishments. He noted that the City began negotiations in 2012, the four parties involved in the Settlement Agreement (County, City, Stop Polluting Our Newport [SPON], and the Airport Working Group [AWG]) agreed to bringing the agreement forward for review, the agreement will undergo public review starting March 2014, and then it goes before the Federal Aviation Administration (FAA), and the District Court Judge. He indicated that the flight limits will expire in a year. Volume 61 -Page 416 City of Newport Beach City Council Special Meeting Minutes January 25, 2014 Jim Mosher believed that last year's list should have been provided so this year's list would be more comprehensive. He suggested that Council revisit how Consent Calendar items cannot be removed by members of the public and how Council Members cannot directly request an item to be placed on a future agenda. He also noted that fire rings were not officially considered a priority by Council at the last Planning Session. He indicated that he provided written comments relative to the initiative to amend the Newport Beach Municipal Code, the Wireless Telecommunications Facilities Code, and the General Plan/Land Use Element Amendment. He questioned what activities did not make it onto the list. 4. ABOUT 2014 -FISCAL PICTURE, KEY INITIATIVES AND PRQJECTS 2014 Fiscal Picture Finance Director Matusiewicz utilized a PowerPoint presentation to discuss the City's fiscal picture. He reported that the economy is showing signs of consistent improvement since property tax revenue, sales tax revenue, and Transient Occupancy Tax (TOT) revenue are up. He discussed City Revenues and reported that the City currently has a surplus of $130 million. Council Member Henn pointed out that the change in revenue from 2012 to 2013 increased $1.3 million. Council Member Gardner questioned how high the reserves should be before the City spends it. Council Member Henn indicated that there is a commitment to spend money in 2013 for parks and other important City functions/projects. He emphasized that this spending will be cash- funded spending, so some of the reserves may be utilized. Council Member Daigle believed that the optimum amount of reserves should be analyzed. Council Member Henn stated that the amount has not been analyzed, but the City has enough to preserve its AAA credit rating by all three top rating agencies, one of only five titles in California to have the highest rating from all three major rating agencies. Finance Director Matusiewicz clarified that the reserves will actually need to increase in order to pay cash for the projects. Pensions and CalPERS City Manager Kiff utilized a PowerPoint presentation and reported that CalPERS rate increases are driven by actual investment earnings, the change in the assumed earnings rate, the change in mortality assumptions, and the recent change in amortization policy. Relative to the CalPERS Historic Investment Returns, Council Member Henn suggested moving the baseline from 0% to 7.5% since PERS has to maintain 7.5% in earnings. Finance Director Matusiewicz reported that the City's amortization policy is more stringent than the State's and, shortly after the City starting doing this, other cities followed. He noted that the rate will increase again in 2016, which is the same time the mortality issue will be affecting the City. In response to Mayor Pro Tom Selich's question, City Manager Kiff indicated that the risk of paying the deficit down sooner since the City has a surplus is that the City is taking a risk by assuming that the money will have the same value. Council Member Henn added that paying extra is an irrevocable use of the money and the City will lose the flexibility to use that money for other projects. He commended the change to fixed amortization and noted that the City did this prior to CalPERS doing it. In response to Council questions, City Manager Kiff reported that the City has implemented 2nd and 3rd tiers for new employees, and City employees are now contributing more towards their pensions. Deputy City Manager/Human Resources Director Cassidy indicated that there is not enough data to determine if doing this has deterred good candidates from coming onboard with the City. Volume 61- Page 417 City of Newport Beach City Council Special Meeting Minutes January 25, 2014 Council Member Curry reported that the City exceeded the State's Pension Reform prior to State law going into effect. He noted that the City's target is that employees pay up to 50% of the total pension cost and that the City's efforts have been recognized by the Orange County Taxpayers Association. Mayor Hill commended the Finance Department for all its hard work. Dennis Baker questioned how other cities impact the City's rate. Council Member Curry reported that the City has its own account with CalPERS, but smaller cities might not and could be impacted when cities file bankruptcy. George Schroeder expressed the opinion that Newport Beach has the best employees, the City is being responsible for today's needs, and he would not like to see good employees' jobs privatized. Council Member Daigle added that the City needs to maintain its high level of service. Council Member Henn "emphasized the City's appreciation for its employees and pointed out that the financial problems are separate from this. Jim Mosher believed that the City is paying its employees and providing benefits more than it needs to, and would still attract good people if it reduces benefits. He expressed the opinion that outsourcing destroys confidence for those that want to work in the government field. Mayor Hill recessed the meeting at 9:35 a.m. and reconvened the meeting at 9:47 a.m. with all members of the City Council present. Police Department Update Police Chief Johnson utilized a PowerPoint presentation, indicated that All 109 (Prisoner Realignment) will release 20,000 to 30,000 inmates, and that about 900 recidivists have been contacted and arrested in Newport Beach already. He reported that the California Police Chief Association is proposing AB 1449 which would close some loopholes in AB 109, Police Chief Johnson reported that violent crimes are down in the City and that, so far this year, only seven property crimes /thefts have occurred. He also discussed the Police Department's crime prevention campaign which was paid for by seized assets. Council Member Curry commended the Police Department and stated that crime has increased about 20% in surrounding cities due to AB 109. In response to Council questions, Police Chief Johnson discussed how the Police Department is a data - driven department and that the new Computer Aided Dispatch/Records Management System (CAD /RMS) will assist with this endeavor. Mayor Hill encouraged everyone to go through the Police Department's Citizens' Academy. Public Works Proiects Public Works Director Webb reviewed major projects currently underway in the City, projects that will begin within 6 to 9 months, and additional future projects. He discussed the Sunset Ridge Park and indicated that it is scheduled to open in Spring 2015; provided an overview of the Marina Park Project and indicated that it is scheduled to open in Spring 2016; and reviewed the Back Bay View Park Project. He reported on the proposed concepts for Sunset View Park and Lower Castaways Park. Council Member Petros expressed appreciation that 56% of the Capital Improvement Projects (CIP) are in Volume 617 Page 418 City of Newport Beach City Council Special Meeting Minutes January 25, 2014 West Newport. He requested that staff keep residents informed about the Semeniuk Slough Project and pointed out that the General Plan requires a wellness program with Hoag Hospital. In response to Council Member Daigle's question, Public Works Director Webb indicated that staffing levels at this time are adequate, but may come before Council if more resources are needed. Mayor Hill recessed the meeting at 10:36 a.m. and reconvened the meeting at 10 :42 a.m. with all members of the City Council present. Community Development Proiects Mayor Hill recused himself from any discussions relative to Mariners Mile and West Newport since he owns property within 500 feet of each area. Council Member Henn recused himself from any discussion relative to Lido Marina and the reuse of the former City Hall site because of a potential conflict of interest since he has a business relationship with a business in the Via Lido .Plaza. Community Development Director Brandt reported that Community Development is comprised of Planning, Building, and Code Enforcement. She utilized a PowerPoint presentation to provide an overview of how the General Plan process works and noted that the ultimate goal is to obtain a Building Permit. She reported that a Land Use Element Amendment will be placed on the November 2014 ballot. She discussed the Local Coastal Program (LCP) Implementation Plan and indicated that she anticipates final approval to occur in December 2015. Community Development Director Brandt reported that future projects include the Lido House Hotel project, the Lido Villas Residential Community project, revitalization in Balboa Village, mixed use at Back Bay Landing, and the San Joaquin Plaza Apartments project. She indicated that large projects under construction include the Newport Bay Marina Project, Mariner's Pointe, 650 Newport Center Drive, 520 Newport Center Drive, and the Meridian Residential Community. City Manager Kiff reported that the reports from the Recreation and Senior Services Department, Fire Department, Library Services Department, Information Technology (IT), and the Municipal Operations Department can be conducted at a Study Session in order to discuss the 2014 priorities. Dennis Baker requested that cyclists be included in cycling priorities. Council Member Petros stated that public input will continue to be taken. He noted that there were three public outreach meetings and a survey was conducted, and that the Bicycle Master Plan Oversight Committee holds regular meetings to receive public input. Council Member Daigle noted that everything also has to come before the City Council for approval. Howard Cork, Newport Bay Conservancy, noted that it is a challenge for the State, County, and City to determine landownership in Newport Bay. He indicated that, if everyone can work together, there may be opportunities for assistance to conduct major projects in that area. Jim Mosher noted that the Local Coastal Program (LCP) was a top priority in 2006, but has yet to be completed. He commended the City for the park projects, noting that the Marina Park site was previously being considered to be a hotel. He believed there is language in the City Charter relative to public, dedicated open space. 5. PRIORITY EFFORTS FOR 2014 City Manager Kiff reiterated Mayor Hill's recusal from any discussions relative to Mariners Mile and West Newport; and Council Member Henn's recusal from any discussions relative to Lido Marina and the reuse of the former City Hall site. Volume 617 Page 419 City of Newport Beach City Council Special Meeting Minutes January 25, 2014 City Manager Kiff referenced the handout entitled, "Priority Issues and Activities for 2014 — Draft for Discussion Purposes Only" and noted that the final list will be coming before Council in February for approval. Arts Council Member Gardner noted that the City has art in storage, but is not a museum. She believed that the arts consultant should identify what the City should keep, sell, or save. Council Members Petros and Henn pointed out that Council approved and funded the creation of an Arts and Cultural Master Plan, City Manager Kiff indicated that this will still occur, but he was waiting until a Library Services Director was hired. Public Information Manager Finnigan added that the City wanted to begin the Civic Center Invitational Sculpture Exhibition Contest and have the consultant assist with the contest. Without objection by any member of the City Council, completion of the Arts and Cultural Master Plan was added to the list. Business Improvement, Marketing, 0vie Affairs Council Member Gardner noted that, about 1% years ago, the Business Improvement Districts (BIDs) were unhappy with how things were being managed and that the City believed that BIDs were using too much staff time. Mayor Pro Tern Selich indicated that the Marine Avenue Merchants Association are doing well and are more engaged since then; Council Member Henn reported that the Balboa Village BID is working independent of the City and working well with the Balboa Village Advisory Committee (BVAC); Mayor Hill reported that the Newport Restaurant BID is pleased to have Visit Newport Beach (VNB) assist with their marketing; and Council Member Henn noted that VNB is also assisting BVAC. Coast and Tidelands Issues Council Member Gardner indicated that something needs to be done about removing runoff at Little Corona since it is an Area of Special Biological Significance (ASBS) and National Pollutant Discharge Elimination System (NPDES) Area. Without objection by any member of the City Council, looking into runoff removal solutions in Little Corona was added to the list. Community Development Mayor Hill recused himself from any discussions relative to Mariners Mile, West Newport, and Balboa Boulevard since he owns property within 500 feet of each aera. Mayor Hill noted that the Corona del Mar entryway has been on the list for years. Public Works Director Webb requested that discussion about this wait until the parking issue has been resolved. Council Member Gardner noted that community outreach is also needed. Regarding Mariners Mile, Mayor Pro Tern Selich indicated that the Land Use Element Amendment Advisory Committee supports doing something in that area. City Manager Kiff indicated that any proposal will be brought to Council for adoption. Michael Toerge believed that the Mariners Mile public walkway should be a priority Volume 61 7 Page 420 City of Newport Beach City Council Special Meeting Minutes January 25, 2014 With Mayor Hill recusing himself, the remainder of Council agreed to placing Mariners Mile on the list. Community D'naa ement Mayor Hill stated that the City needs open communication with the Newport -Mesa Unified School District (NMUSD) to help improve the education system. Regarding NBTV, Public Information Manager Finnigan indicated that it will be transitioned to VNB either the end of February or early March. Without objection by any member of the City Council, community engagement with the NMUSD was added to the list. Other Maior Public Facilities /Public Works Proiectg City Manager Kiff reported that the West Newport Facilities Plan will be going before the City Council on February 11. Regarding public facilities, Council Member Henn indicated that the Finance Committee needs to reanalyze the Facilities Finance Plan (FFP) after the West Newport Facilities Plan is considered. Council Member Gardner noted that, relative to the Water Master Plan, the City needs to have a plan to handle the drought, which could include a new rate structure or looking into using artificial turf. City Manager Kiff indicated that a discussion will occur at a Study Session regarding Capital Improvement Projects (CIP). Council Member Petros expressed hope that the project on Coast Highway, near Cappy's Restaurant, will keep moving forward since it is close to receiving Caltrans concurrence and the City can use resources from the Orange Coast River Park to assist with the project. Park Construction. Habitat Improvements Council Member Gardner asked if something simple can occur in Lower Castaways, noting that the wood steps need Coastal Commission approval. Mayor Pro Tom Selich suggested seeing what can be done without needing Coastal Commission permits. Without objection by any member of the City Council, Lower Castaways was added to the list. Council Member Petros noted how simple improvements freshen up parks, like Cliff Drive Park, and recommended doing this throughout the City. Regarding dog parks, Council Member Curry indicated that the Civic Center dog park is one of the most visited sites at the Civic Center and asked about opportunities to have dog parks in other locations. City Manager Kiff indicated that dog parks are relatively inexpensive to create. Without objection by any member of the City Council, looking into other dog park opportunities was added to the list. In response to Council questions regarding the City's urban forest, Municipal Operations Co- Director Pisani reported that the Parks, Beaches and Recreation Commission Subcommittee is revisiting City Council Policies G -I (Retention or Removal of City Trees) and G -6 (Maintenance and Planting of Parkway Trees) in late Spring. Volume 61 7 Page 421 City of Newport Beach City Council Special Meeting Minutes January 25, 2014 City Manager Kiff indicated that the City needs about 8,000 more trees which cost $600 to $800 each (about $5 million). Mayor Pro Tem Selich recommended creating a 3.5 year plan so the City can reinvest in its urban forest. Council Member Daigle pointed out that members of the Newport Beach Conservancy are in attendance and announced that the Big Canyon Creek Restoration is on the list. Re- Thinkine Government Discussion ensued relative to enforcement at Corona del Mar State Beach and Little Corona del Mar State Beach, and possibly having State Park Rangers administer the beaches and handle enforcement. Without objection by any member of the City Council, looking into having State Park .hangers administer the beaches and handle enforcement was added to the list. Regarding outsourcing, Mayor Hill suggested removing it from the list; however, no consensus was reached. Transportation Regarding flashing crosswalks, Council Member Petros noted that it is included in the Master Plan. Council Member Gardner stated that residents in Corona del Mar initially wanted it, but do not like having it now because the road cannot be synchronized. Council Member Henn suggested still looking into the technology since it can be helpful in locations like Balboa Boulevard. Without objection by any member of the City Council, looking into using more flashing crosswalks on Balboa Boulevard was added to the list. Council Member Henn questioned why the City does not have a bicycle sharing program. Council Member Curry noted that Fort Lauderdale, Anaheim, and Long Beach are successfully using this type of program. Council Member Petros indicated that this is something that can be looked at during the Bicycle Master Plan efforts, in conjunction with the Board of Supervisor District 1 and District 2 Bicycle Collaborative. Without objection by any member of the City Council, looking into the possibility of implementing a bicycle sharing program was added to the list. Bernie Svalstad, Corona del Mar Business Improvement District (BID), distributed a handout that outlined the BID's priorities. He requested City assistance with financing ($500,000) and the design of the Corona del Mar entryway project. Regarding the parking project, he reported that the project is almost done, except for ordinance approvals. He highlighted the remainder of the handout. City Attorney Harp indicated that additional copies of the handout were available on the back counter. George,Schroeder noted that outsourcing can actually impede services, but the overall concept of outsourcing should be looked at with fresh eyes since pension costs are ballooning. He believed that flashing crosswalks should not be installed since they would cause more complaints. Dennis Baker requested that sand replenishment be looked at to protect sea -level rise. He commended the City for creating the app, MyNB, and encouraged the City to promote it. He indicated that, as the President of the Orange Coast River Park, he looks forward to working with the City on Lower Castaways. He expressed the opinion that the City is moving in the right direction relative to community engagement, but requested that people receive a message back after communicating with the City, so they know that their request, suggestion, concern, etc. has been received. Michael Toerge requested that Council look into enhanced safety and improving the walkway from Bayside Drive to Balboa Island, the changing makeup of Corona del Mar since it seems to be housing more banks Volume 61 - Page 422 City of Newport Beach City Council Special Meeting Minutes January 25, 2014 than community amenities, and allowing bike parking in lieu of projects creating more car parking spaces. Jim Mosher believed that there is a problem with public engagement since attendance at meetings is low and suggested that Council put warrant lists or check registers on the agenda. Mayor Hill believed that, when citizens feel that the City is being run well, they do not attend meetings. However, if there is an issue, they are in attendance. 6. WRAP UP /NEXT STEPS Mayor Hill thanked everyone for attending the meeting. Mayor Hill reported that he will be using his year as Mayor to celebrate everything that Newport Beach does well. He stated that, in January, senior services and restaurants were celebrated; and, in February, hotels will be celebrated. He asked that the public provide suggestions because there are a lot of things that the City does right. 7. ADJOURNMENT - 12:14 mm The agenda for the Special Meeting was posted on January 22, 2014, at 5:00 p.m on the City's website; on January 22, 2014, at 5;00 p.m on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive; and on January 22, 2014, at 5:00 p.m. in the Meeting Agenda Binder located in the entrance of the City Council Chambers at 100 Civic Center Drive. Recording Secretary Mayor -oo&, '�'. City Clerk Volume 617 Page 423