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HomeMy WebLinkAboutSS2 - Status of Sphere Issues DiscussionsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Study Session Agenda Item No. 2 March 22, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Sphere Issues Committee SUBJECT: Report on Status of Sphere Issues Discussions (No Action Required) ISSUE Receive and fife a report from the Sphere Issues Committee. BACKGROUND On November 25, 2003, the Airport Policy Review Committee submitted a report to the City Council recommending: (a) the creation of a "Sphere Issues Committee "; (b) the extension of an invitation to the Board of Supervisors to participate in sphere issue discussions; and (c) the preparation of studies and reports necessary to fully understand the opportunities presented by any specific sphere issue. The Airport Policy Review Committee generally defined sphere issues as "County properties and related services that are located or provided in or adjacent to Newport Beach" that "impact, or have the potential to impact, Newport Beach residents." Specific sphere issues identified by the Airport Policy Committee included the Santa Ana Heights Redevelopment Agency /Project Area, Coyote Canyon landfill, County tidelands and John Wayne Airport. The Airport Policy Review Committee noted the City and County have a 70 year history of ...cooperative agreements and projects' that have benefited Orange County residents by reducing the cost of government while maintaining or enhancing public services and natural resources. On December 9, 2003, the City Council adopted Resolution 2003 -76 establishing the Sphere Issues Committee and adopting the recommendations of Airport Policy Review Committee. The Sphere Issues Committee was to submit a progress report within six months. However, the Board of Supervisors did not immediately accept our invitation to discuss sphere issues; certain sphere issues were not discussed during the first meeting involving elected officials; and the County experienced a change in administration with the departure of Jim Ruth and the hiring of Thomas Mauck as CEO. The Sphere Issues Committee has conducted two meetings with Supervisors Silva and Wilson and staff has met on three occasions with CEO Mauck. The purpose of this report is to summarize the status of discussions including those principles and concepts that have appear to have some merit and some of the issues that remain unresolved. DISCUSSION Principles City and County representatives have been working from a set of principles and objectives that are designed to provide the framework for the discussion of individual sphere issues and, hopefully, an agreement in concept. These principles and objectives include: (a) A significant reduction in County general fund expenditures achieved through the use of existing City resources and personnel as well as some direct City funding in consideration of additional City control over certain functions and property; (b) Acknowledgement that any accord on sphere issues must be implemented by an agreement that recognizes that progress on individual sphere issues may occur at different rates and at different times; and. (c) Recognition that any agreement must represent good public policy, must protect the quality of life of Newport Beach and Orange County residents and should provide for enhanced environmental resources and public recreational opportunities as well as coordinated planning and construction of public infrastructure improvements. Santa Ana Heights Redevelopment Agency (SAHRDA) The City and County have discussed the notion that, in light of the recent annexation of East Santa Ana Heights and the proposed annexation of West Santa Ana Heights, the City may be in a better position to administer the SAHRDA Project Area and Specific Plan. The City has already taken the lead in the acquisition of a fire station site and is participating in the planning and design of a community center on the site occupied by the YMCA. City administration of the SAHRDA Plan is complicated to some extent by the fact that a substantial amount of tax increment is, by statute, required to be used to repay bankruptcy "bailout" bonds. However, the City and County are required to enter into a tax sharing agreement and that agreement can address the manner in which tax increment is allocated as well as ensure the County retains all funds necessary to satisfy existing debt. City control over the SAHRDA would allow our new residents to deal directly with their local elected representatives on issues related to projects and public services and would also promote the Board's goal of narrowing the role of County government. Coyote Canyon Landfill The Coyote Canyon Landfill was operated by the County from 1963 to 1990 on land leased from The Irvine Company. The County currently maintains the landfill cap and groundwater collection and disposal system while The Irvine Company operates and (through a contractor - GRS) maintains the landfill gas collection system and the related power plant. The County would like the City to assume its responsibilities and the City may be able to use existing personnel to perform landfill cap maintenance. The Irvine Company has indicated a willingness to transfer the property, and existing agreements with GRS, to the City subject to certain conditions. The City has retained Rutan & Tucker (Richard Montevideo) and Greenberg Traurig (Greg Hurley) to provide legal analysis and SCS Engineers and Arcadis to provide the technical support. We expect, within 90 days, to complete the analysis of these systems and other factors related to the cost of operation as well as possible risks associated with ownership. The Sphere Issues Committee believes, based on preliminary analysis, that the County and The Irvine Company have done a very good job protecting residents from any adverse impact of the landfill. However, now that the landfill and adjacent residential areas have been annexed to the City, the City Council may be the appropriate legislative body to ensure the same (or enhanced) level of protection through continued landfill cap maintenance and expert gas collection system operation. In addition, the assumption of the County's maintenance obligations at Coyote Canyon may constitute consideration for agreement on other sphere issues that protect the entire City. Newport Coast/Newport Ridge Park and Open Space Lands We have discussed the advantages and disadvantages of a County transfer to the City of all County -owned parks and open space in Newport Ridge and Newport Coast. The park and open space lands under consideration include up to five view parks, Upper Buck Gully and portions of Los Trancos and Muddy Canyons. As is the case in Santa Ana Heights, the City has resources and infrastructure that may allow us to maintain these lands more efficiently than the County. The City also has moved aggressively to address water quality issues in Morning Canyon and Buck Gully and ownership of the watershed may provide the City with additional tools to deal with pollution and erosion. Upper Newport Bay We have discussed the concept of a City /County Cooperative Agreement that would establish certain objectives relative to Upper Bay management and resource enhancement as well as an implementation program (funded primarily by the City) that would help the City, County and the Department of Fish and Game achieve these objectives. The objectives include implementation of the Upper Newport Bay Ecosystem Restoration Project, compliance with the Newport Bay TMDLs and resource enhancement. The implementation plan would include additional City funding of the Upper Bay Regional Park and any shortfall in costs associated with County water quality lab on Shellmaker Island. The City and County have also discussed a County transfer of tidelands — including Newport Dunes — to the City on a revenue neutral basis. The transfer of the tidelands would give the City additional control — as the proprietor — over property that has been the source of much debate in the past. The County would benefit by receiving general fund revenue — which may be spent anywhere in the County — rather than tideland revenue — which must be spent on certain tideland related activities in Newport Beach. John Wayne Airport The City and County agree that each has made a substantial investment in public facilities and infrastructure — especially in Santa Ana Heights - that assume the airport operations would, in terms of impacts, generally fall within the parameters described in EIR 582. We have discussed the concept of a JPA that would require both the City and County to consent to changes in land use plans and policies in and around Santa Ana Heights — including the property between west airport boundary and Red Hill Ave. The JPA would also require the consent of both the City and County to certain acquisitions of property that would have the potential to alter the assumptions in EIR 582. The JPA could dovetail with any City assumption of responsibilities to administer the SAHRDA Plan. We are in the preliminary stages of evaluating the relevant land use plans and policies as well as the most appropriate legal vehicle for implementing any agreement. The SIC will be recommending modifications to the resolution that established the Committee and hopes to submit a progress report to the City Council in the next sixty (60) to ninety (90) days.