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Home My WebLink About24 - Mariner's Mile Public Improvement PlanCouncil Agenda Item .24 CITY OF NEWPORT BEACH Administrative Services Department Resource Management- Fiscal Services •M.I.S.•Revenue•Accounting January 9, 2001 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dennis Danner, Administrative Services Director A/-�4. SUBJECT: FINANCING OF MARINER'S MILE PUBLIC IMPROVEMENT PLAN RECOMMENDATION If the City Council decides to move forward on the project at this time, staff recommends that an appropriation from Fund Balance should be used as a source of funds, rather than borrowed money from an outside source. If a total present value equivalent to the original $650,000 is to be maintained, the attached budget amendment of $483,000 should be approved at this time. BACKGROUND The City Council has discussed prospective improvements to Mariner's Mile on several occasions, and a planning and design effort has been initiated. As part of the Budget Review Study Session of June 13, 2000, presentations were made and a funding request was received from Mark Murrell of the Mariner's Mile Business Owners Association. After some discussion, Council Member Glover made a specific proposal that 10% of the sales tax generated from that area be budgeted for improvements to Mariners Mile during each of the next five fiscal years. That amount was subsequently specified as part of the Budget Checklist as $130,000, and it was approved for the FY 2000 -01 Budget by the City Council when the Budget was adopted on June 27'x. The Council indicated interest in continuing the same level of funding for a total of five years. CURRENTSTATUS On October 10, 2000 the Mariner's Mile Strategic Vision and Design Framework was approved by the City Council. City Lights Design Alliance was retained to prepare the public improvement plan, a draft of which is expected to be completed by January 22, 2001. January 9, 2001 Page 2 PROPOSAL In order to facilitate more timely progress on the overall project, Council Member Glover asked staff to develop a plan to make the entire amount of funds originally requested over a five year period available in advance. Although borrowing the money from an outside entity was initially considered, staff believes that if the money is to be made available at this time, it would be simpler and less costly for the funds to be appropriated from existing Fund Balance by budget amendment. If this is done, the $650,000 figure that was originally discussed in Study Session can be discounted to compensate for lost investment earnings. Since $130,000 has already been appropriated, the additional appropriation this year that would constitute a present value equivalent to the remaining $520,000 intended to be spread over next four years would be $465,000. The additional $465,000 can be appropriated from Fund Balance this year without adversely affecting the City's ability to maintain Contingency and Stabilization Reserves at target levels. There are long -term Designated Reserves and long -term liabilities which are not fully funded, but the current year schedule of budget allocations for these purposes would not.be impacted by this additional appropriation. City of Newport Beach BUDGET AMENDMENT 2000 -01 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: NO. BA- 023 AMOUNT: $483,000.00 Increase in Budgetary Fund Balance AND X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To appropriate $483,000 to the Mariner's Mile Economic Development capital project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Eund Account 010 3605 REVENUE ESTIMATES (360 1) FundlDivision Accoun t EXPENDITURE APPROPRIATIONS (3603) Description General Fund - Fund Balance Description Signed: Signed: Services Director Administrative ApDr'6val: City Manager Amount Debit Credit $483,000.00 Automatic $483,000.00 Date �at 4 Signed: City Council Approval: City Clerk Date Description Division Number 7014 Gen Fund Cap Proj - Misc Proj. & Studies Account Number C2700500 Economic Dev - Mariner's Mile Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: Services Director Administrative ApDr'6val: City Manager Amount Debit Credit $483,000.00 Automatic $483,000.00 Date �at 4 Signed: City Council Approval: City Clerk Date Sent By: THE MURREL COMPANY; MARINER' 949 722 1131; Jan -9 -01 1:22PM; Page 213 MILE BUSINESS O W NrR9 .ASSOCIATION CITY 0P N r W I'URT BRA C N "RECEIVED I �J Y R AGENDA PRINTED:" kk+ 1-q-DI January 9, 2001 Mr, Homer L. Bludau City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Re. Mariner's Mile Sales Tax Participation Timing of Funding Dear Mr. Bludau: At tonight's City Council meeting, among other items, the Council will be reviewing the allocation of sales tax generated in the Mariner's Mile area towards public improvements which are tieing considered by the Mariner's Mile Business Owners Association ("MMBOA "). As MMBOA completes its improvement expenditure plan, it is imperative tliat we know the amount of funds which will be immediately available to complete the anticipated public improvements. MMBOA will then present the final improvement budget to the City Council for their final approval. We also wanted to take this opportunity to express some of' our thoughts about Mariner's Mile and the historical and more recent funds which have been allocated to this area. Unlike other areas in the city such as Corona Del Mar and the Balboa Peninsula, Mariner's Mile has not received the financial investment from the city in terms of basic infrastructure items such as street fighting, traffic signa':ization and intersection enhancements, median construction, and landscaping /hardscape improvements. Mariner's Mile, which carries the burden of being a primary ,.arterial in the city, has not been given the amount ot'financial attention that other areas in the city have garnered. The Mariner's Mile area has also had the stigma of a potential future 12' road widening attached to it ter many years, a requirement which should be Removed in order to alleviate the dis- incentive to business investment that it creates. 2439 WEST COAST Hrn IIWAY, .STG. 200 • NLwvuO I BGAOH. CALTO ORNIA • 92663 ruuNe 94 Y•]22 11 11 • I Ax: 917.722.Y 2 41 Sent By: THE MURREL COMPANY; 949 722 1131; Jan -9 -01 1:23PM; Page 3/3 Letter to Homer Bludau January 9, 2001 Page 2 The City Council has recently approved the allocation of 101/i, of the sales tax generated in the Mariner's Mile area for the next five years towards public improvements. This amount, in small, annual increments will not. provide the immediate benefit that we all want to see in this area. MM130A wants to work with the city to separate the basic infrastructure improvements required in the Mariner's Mile u.)-ea from the enhancement concepts as outlined in the recently approved Design Framework, so that the area can receive the greatest immediate impact from the Sales Tax funds, As you are aware, the Design Framework for Mariner's Mile is a planning overlay document which places many new financial burdens and conditions on the backs of the property owners in the Mariner's Mile area. In seeking approval of the Design Framework, the property owners, in a move unprecedented in any other area in the city, have agreed to significant signage, landscaping, and architectural reforms. We make this point to lurther illustrate that the businesses and property owners are making great strides towards improving the Mariner's Mile area. MMI30A feels strongly that the city should now work toward enhancing the Mariner's Mile area by seeing to it that the Sales Tax allocation is provided to the Mariner's Mile area today, not in small increments over the next five years. We urge you to emphasize this with the council tonight. The city needs to assist MMB(,)A in taking advantage of the .stronger economy, recent approval of the Design Frame.worlc, and positive momentum in the area in order to make some real, noticeable change, in Mariner's Mile. Sincerely, MAWNLRS ASSOCIATION JWT7r Mark Murrel Fed B ean Member Metttber