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HomeMy WebLinkAbout18 - City Council 2009 PrioritiesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 18 April 28, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Homer Bludau, City Manager 949/644 -3000 or hbludau @city.newport- beach.ca.us SUBJECT: Council Review of Staff Status Report on Six of the City Council's 2009 Priorities ISSUE: Does the City Council have any comments or questions regarding the status of the seven Council priorities reported on by staff? RECOMMENDATION: Review and comment, as desired.' DISCUSSION: Background: The City Council held a Special City Council meeting on Saturday, January 10, 2009, to discuss and establish its priorities for 2009. This was the third consecutive year the City Council has met early in the calendar year to set its priorities. A total of thirteen (13) priorities were settled on, but in no particular order. As in the past, the City Manager was asked to provide draft priority statements, actions steps and schedules for the City Council to review, make revisions to and finalize. The status of priority implementation will be reviewed each month starting in March. Status reports on seven priorities were provided at the March 24, 2009. This status report provides current information on the remaining six priorities. This is the second status report of the year. The six priorities being reported on in no particular order are as follows: • Continue to implement an effective traffic management plan by a variety of projects which improve traffic flows throughout the City. City Council Priorities April 28, 2009 Page 2 • Complete the Schematic Design Phase and the EIR for the new city hall and park site. • Provide more public parks and recreation facilities, with emphasis on active facilities where appropriate. Construct a new OASIS facility for our seniors. • Continue with the process to determine the eventual land use for the Banning Ranch property, pursuing both open space and development options outlined in the General Plan. • Continue to implement water quality improvement projects, while at the same time, assessing the need to adopt a tiered water rate structure to assist in water conservation efforts. • Develop and implement a strategy, including a funding component, for the dredging of the Lower Bay Additional status reports will be provided at the second City Council meeting of each month for the remainder of the calendar year. These reports will always be placed on the Consent Calendar, which will provide Council the opportunity to pull the item and discuss any or all of the six priorities being covered by the report. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Public Notice: This agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the Council considers the item). Submitted by HOMER L. BLUDAU City Manager Attachments: 2009 Council Priorities Indicator Tracker City of Newport Beach kv \<<FO R� ; 2009 Council Priorities Indicator Tracker Status Report Date published: April 28, 2009 Presented by: Homer L. Bludau CONTINUE TO IMPLEMENT AN EFFECTIVE TRAFFIC MANAGEMENT PLAN BY A VARIETY OF PROJECTS WHICH IMPROVE TRAFFIC FLOWS THROUGHOUT THE CITY Phase 1 signal project completed and March 15, 2009 Project was completed and operational operational on March 15, 2009 Phases 2 and 3 signal project designs March 30, 2009 Design Complete. completed, work begins Construction contract awarded April 14, 2009 Phases 2 and 3 — Completed and December 31, 2009 operational Council discussion on Phases 4 -8 as March 24, 2009 FY 09 -10 currently includes whether to accelerate design and funding for design and construction construction of Phases 4 & 7 Staff recommends projects which facilitate May 12, 2009 FY 09 -10 currently includes traffic flows in FY 09 -10 CIP budget the Jamboree/73 Bridge widening and Improvements to the Jamboree/MacArthur Intersection Council approves new CIP budget with June 23,2009 project schedules Staff reports to Council as to status of CIP November 24, 2009 traffic related projects Comments: As discussed at the Council's priority setting meeting, to accelerate the design and construction of Phases 4-8 would cost approximately $4M, so Council may want to consider accelerating some or all of the Phases, depending on how funding could be accommodated. This priority includes staff proposing CIP projects which might result in additional turn lanes, street widening, tum -outs and other measures which could translate into improved traffic circulation for particular problematic locations. Staff: Steve Badum; Dave Webb 71 COMPLETE THE SCHEMATIC DESIGN PHASE AND THE EIR FOR THE NEW CITY HALL AND PARK SITE Hire City Hall & Park architect (BCJ) January 2009 Achieved Hire City Hall & Park Project Management Firm (CW Driver) January 2009 Achieved Hire City Hall & Park EIR Consultant (LSA) January 2009 Achieved Complete Concept Plan Phase April 15, 2009 Achieved Complete Schematic Design Phase and adopt Final EIR November 24, 2009 i Comments: The City Hall and Park Design project is well underway in 2009, with design team meetings held weekly. City staff and the design team presented a concept plan for the City Hall and Park to City Council on April 14, 2009. The rest of 2009 will be the Schematic Design phase, including at least one public meeting during summer 2009. 2010 will include the "Design Development" and construction documentation phases, which precede bidding and construction itself. Completion of the project is generally estimated at summer 2012, with an up to 18-month construction period. As to the EIR, LSA Associates, Inc., the City's environmental consultant, has completed the Initial Study (IS) for the proposed City Hall and Park Development Plan project. The Notice of Preparation was distributed on April 1, 2009. The purpose of the NOP is to notify all responsible agencies and interested parties of the City's intent to prepare an Environmental Impact Report (EIR) for the project and to solicit comments and suggestions regarding the preparation of the EIR. The required 30-day public comment period will conclude on April 30, 2009. The next step of the process is the preparation of the Draft EIR, which will include a detailed and thorough analysis of all environmental aspects of the project consistent with the requirements of the California Environmental Quality Act (CEQA). It is anticipated that the Draft EIR will be distributed for public review and comments by September 1, 2009 to meet the November 24, 2009 planned certification date. Staff: Dave Kiff, Steve Badum, Sharon Wood, Jaime Murillo PROVIDE MORE PUBLIC PARKS AND RECREATION FACILITIES, WITH EMPHASIS ON ACTIVE FACILITIES WHERE APPROPRIATE; CONSTRUCT A NEW OASIS FACILITY FOR OUR SENIORS Sunset Ridge Park — obtain PB &R and June 24, 2008 PB &R approved May 20, Council conceptual approvals 2008; Council approved June 10, 2008 Begin CEQA and final design processes November 25, 2008 Awarded contract to EIR consultant and architect; in process Determination of MND or EIR process March 15, 2009 City will process an EIR Environmental clearance for park based on June 2010 On Target EIR Coastal Commission permit approval February 2011 expected (after EIR finalized) Award bid after preparation of construction June 2011 documents and bidding Park open for public use December 2012 Marina Park — conceptual plans prepared June 31, 2008 Council approved on Nov. 13, and approved by PB &R, City Council 2007; PB &R approved December 14, 2007 EIR public review period Feb. 23 -April 2, 2009 Achieved City Council EIR hearing May -June, 2009 On Target Environmental clearance expected September, 2009 i Completion of construction plans and August 2010 specs, all water quality permits, Army Corps, etc. Advertise, bid and award multiple November 2010 construction contracts for specialized contractors Construction completed and open for December 2014 public use k ParFcompany rmits February 10, 2008 Approved February 5, 2008 perioMay Edayconstruction -March 2009 Construction complete ersee structiMarch -June 2009 On Target maintenance p eriod City assumes ownership of park and June 2009 continues maintenance period Open to public use September 2009 OASIS Rebuild - construction out to bid Jan. 12 - Feb. 12, 2009 Bid opening Feb. 12, 2009 Award construction bid March 10, 2009 Awarded March 10, 2009 Construction of project March 2009 -Oct. 2010 Currently under Construction Construction completed and open for October 2010 public use Banning Ranch Community Park— Sept. 2008 Application submitted development application submitted Discuss Community Park plans including Ongoing Ongoing size, location and improvements with developer Synthetic Turf Study — RFP for December 2008 Proposals received Dec. 19, consultant services 2008 Award of consultant contract for $23,000 February 2009 Study Awarded to CMX Sports Engineers on April 2, 2009 Phase I- study of existing park sites for February-April 2009 Revise to April — June 09 usage recommendations PB &R Commission — presentation of study May 2009 Revise to July 09 findings Presentation to Council of study findings June 2009 Revise to August 09 and determination of whether to proceed with plans and specs CYC- Renovation — project out to December 2008 Bids received January 6, 2009 construction bid Award construction bid January 2009 Bid awarded January 27, 2009 Construction of project February -June 2009 Currently under construction Construction completed and open for June 22, 2009 public use Comments: Most of these projects are continuations of the related 2008 Council priority and most involve multi -year planning, processing and construction. Staff: Laura Detweiler, Dave Webb CONTINUE WITH THE PROCESS TO DETERMINE EVENTUAL LAND USE FOR THE BANNING RANCH PROPERTY, PURSUING BOTH OPEN SPACE AND DEVELOPMENT OPTIONS OUTLINED IN THE GENERAL PLAN Open Space City Council receipt of appraisal report January 27, 2009 Provided January 27, 2009 Resource Opportunity Group report to Ad May 8, 2009 to begin environmental review, Hoc Committee on funding availability and will be supplemented as Meeting with interested parties to discuss April 23, 2009 ROG met with representatives funding availability March 9 - April 9, 2009 of Banning Ranch Conservancy City Council receipt of funding availability May 26, 2009 2009 report, and direction to Ad Hoc Committee November 2 - December on next steps 16, 2009 Comments: Interested parties have been slow to arrange meetings with ROG, as provided by City Council in January. Both City and Conservancy submitted requests for Measure M environmental funding to OCTA, and City supported Conservancy's request as consistent with our own. Development City receipt of complete application January 21, 2009 Application material sufficient material to begin environmental review, and will be supplemented as review process proceeds NOP public review period March 9 - April 9, 2009 NOP released March 16; review period ended April 17, 2009 Draft EIR public review period November 2 - December 16, 2009 Planning Commission recommendations April 22, 2010 on development application Final City Council action on development June 8, 2010 application Comments: The two processes — determining whether Banning Ranch can be purchased and preserved for open space and the development of Banning Ranch as a residential project — are being processed concurrently in order to determine at the end of both processes which alternative is most feasible. Development schedule depends on receipt of final project information from applicant and amount of required review by outside agencies. Staff: Sharon Wood L, CONTINUE TO IMPLEMENT WATER QUALITY IMPROVEMENT PROJECTS, WHILE AT THE SAME TIME ASSESSING THE NEED TO ADOPT A TIERED WATER RATE STRUCTURE TO ASSIST IN WATER CONSERVATION EFFORTS Bring forth a draft Water Quality March 2009 Not completed yet. Key to Management Plan (WQMP) to City plan's completion is Federal Council which identifies fiscal impacts government's pending determination on Stimulus funding for Upper Newport Bay. Establish Council ad hoc Committee on March 2009 Not completed yet. Planned Water Use. Purpose is to assistfreview for May 2009. However, City staff action relating to potable water staff has been able to attend purchases and use in the city (with OCWD all relevant OCWD and and MWDOC). MWDOC Water Producers meetings. Consider certain aspects of the WQMP in May 2009 the context of the 2009 -2010 Fiscal Year Budget. Update the City's Water Master Plan (for May 2009 Update of Water Master Plan potable water delivered to homes, city Completed facilities, and businesses). Determine if existing rate structure will accomplish the Plan, including likely increases in water purchasing costs. If not, recommend rate changes. Continue City's water conservation efforts Ongoing via Water Conservation Coordinator. Direct WCC and Utilities Director to follow and update City on other jurisdiction's actions relating to tiered rate structures. Implement any rate changes based on the July 2009 Water Master Plan's needs. Evaluate the city's obligations relating to rate changes under Proposition 208. Study how the updated Water Master May 2009 to October Plan's needs could be addressed with a 2009 tiered -rate structure (to encourage conservation). Determine whether to implement a Tiered October 2009 Rate structure, and suggest the timing thereof. VA Comments: At first glance, these are two separate goals. But because excessive water use outside of homes and businesses causes urban runoff, and urban runoff has a major impact on water quality in our Bay and Ocean, the two issues are tied together. One challenge in this Priority is to analyze the pros and cons of a Tiered Water Rate (a rate structure that rewards conservation but penalizes overuse) while the City enters a year of water supply uncertainty. Many believe that prolonged drought will force our water suppliers (the Orange County Water District and the Metropolitan Water District of Orange County) to ration water. At the same time, rates charged to the City for water purchases have gone up and will continue to go up. City staff believes that a current review of the Water Master Plan, a plan that tells the City what water distribution facilities need upgrading and recommends an order for these upgrades, will tell us that we cannot sustain the WMP's needs with the current water rates. Therefore, for several reasons, a rate increase is likely to be needed — and likely to be needed before the City can adequately study going to a tiered rate system. The tiered -rate study necessarily will include impacts to the water billing system — including its software, meters, meter reading, and more. Therefore, it is likely that staff will come to the City Council with a rate increase based on the current rate structure followed by a recommendation on applying that rate increase across a rate structure different from what we have today. If there is a simpler way to both accommodate the needs of the Water Master Plan and appropriately address suggested conservation -based rate structures at the same time, we will do so. Staff: Dave Kiff, George Murdoch, Shane Burckle, Dave Webb, Bob Stein DEVELOP AND IMPLEMENT A STRATEGY, INCLUDING A FUNDING COMPONENT, FOR THE DREDGING OF THE LOWER BAY Advocate in Washington DC and with the February 2009 to May DC advocate Jim Crum has US Army Corps of Engineers (LA District) 2009 been involved in this for the Corps' consideration of a Lower discussion. As of the date of Newport Bay (LNB) dredging project within this report, no news yet on the Economic Stimulus Package (American Stimulus funding for the Upper Recovery and Reinvestment Plan of 2009). Bay. Because of "shovel - ready" requirement, City is seeking Federal FY 10 appropriations for LNB. Council Member Daigle went to DC on this matter March 4- 5, 2009. Continue City's current work on toxicity Ongoing City Council heard a testing of the LNB and its analysis of the presentation about the CAD at possible use of a Confined Aquatic Disposal its April 14, 2009 Study (CAD) site for certain materials. Session. Develop project alternatives (including May 2009 Staff to develop with the funding) for the LNB, including a range of consultation and advice of: options as follows: • Harbor Commission • No federal funding. • Coastal -Bay Committee • 100% federal funding of the Federal • Bay Issues Committee Navigational Channel. • Corps staff • The "one and done" plan (encourage . Consultants (Larry Paul, the Corps to fund a complete dredging Tom Rossmiller, Jim project then remove the obligation from I Crum) the Corps' operations and maintenance i list). • Other alternatives in between the above. Consider any possible alternatives and May 2009 funding recommendations within the City's FY 2009 -2010 budget. When Stimulus Package is adopted, February 2009 and See above. advocate before the Corps for LNB project onward implementation (within the Corps' O&M allocation). Directly assist Corps with any studies, Ongoing City's current testing and CAD environmental reports, or permitting analysis has the City taking required with the LNB project. the lead on these issues, pending any Congressional authorization for the US Army L_ Corps to work on them. Comments: A Lower Newport Bay Dredging Project is a long- hoped -for goal of the community, given the expanse of shoaling in the Harbor. A full project may cost in the range of $15 -20 million. The City has attempted to jump -start a future project by advancing much of the testing and analysis that the Corps will have to do before an LNB project is shovel - ready. The City is optimistic that the Corps will receive a large amount of appropriation in any Economic Stimulus Package within the new Congress. Some of this is likely to go to the Upper Bay Ecosystem Restoration Project, which would enable the City to focus its federal FY 2010 appropriations requests on securing Corps funding for dredging the Lower Newport Bay. Dredging the LNB is not a "new" project for the Corps. It is an ongoing, current Operations and Maintenance ( "O &M ") Corps obligation (yet one that the Corps has consistently zeroed out in funding). As such, the prospects look better than usual for getting the project done in 2009 or 2010, if this project competes successfully against other Corps O &M needs. Staff: Dave Kiff, Chris Miller, Larry Paul (consultant), Jim Crum (DC advocate) 10 4/,? COUNCIL PRIORITY I ------------- u ---------- CONTINUE TO IMPLEMENT AN EFFECTIVE TRAFFIC MANAGEMENT PLAN BY A VARIETY OF PROJECTS WHICH IMPROVE TRAFFIC FLOWS THROUGHOUT THE CITY Objective Target Action Phase 1 signal project completed and March 15, 2009 Project was completed and operational operational on March 15, 2009 Phases 2 and 3 signal project designs March 30, 2009 Design Complete. completed, work begins Construction contract awarded April 14, 2009 Phases 2 and 3 — Completed and December 31, 2009 operational Council discussion on Phases 4 -8 as March 24, 2009 FY 09 -10 currently includes whether to accelerate design and funding for design and construction construction of Phases 4 & 7 Staff recommends projects which facilitate May 12, 2009 FY 09 -10 currently includes traffic flows in FY 09 -10 CIP budget the Jamboree/73 Bridge widening and Improvements to the Jamboree /MacArthur Intersection Council approves new CIP budget with June 23,2009 project schedules Staff reports to Council as to status of CIP November 24, 2009 traffic related projects Comments: As discussed at the Council's priority setting meeting, to accelerate the design and construction of Phases 4 -8 would cost approximately $4M, so Council may want to consider accelerating some or all of the Phases, depending on how funding could be accommodated. This priority includes staff proposing CIP projects which might result in additional turn lanes, street widening, turn- outs and other measures which could translate into improved traffic circulation for particular problematic locations. COUNCIL PRIORITY COMPLETE THE SCHEMATIC DESIGN PHASE AND THE EIR FOR THE NEW CITY HALL AND PARK SITE Objective Target Action Hire City Hall & Park architect (BCJ) January 2009 Achieved Hire City Hall & Park Project Management Firm (CW Driver) January 2009 January 2009 April 15, 2009 November 24, 2009 Achieved Hire City Hail & Park EIR Consultant (LSA) Complete Concept Plan Phase Complete Schematic Design Phase and adopt Final EIR Achieved Achieved Comments: The City Hall and Park Design project is well underway in 2009, with design team meetings held weekly. City staff and the design team presented a concept plan for the City Hall and Park to City Council on April 14, 2009. The rest of 2009 will be the Schematic Design phase, including at least one public meeting during summer 2009. 2010 will include the "Design Development" and construction documentation phases, which precede bidding and construction itself. Completion of the project is generally estimated at summer 2012, with an up to 18 -month construction period. As to the EIR, LSA Associates, Inc., the City's environmental consultant, has completed the Initial Study (IS) for the proposed City Hall and Park Development Plan project. The Notice of Preparation was distributed on April 1, 2009. The purpose of the NOP is to notify all responsible agencies and interested parties of the City's intent to prepare an Environmental Impact Report (EIR) for the project and to solicit comments and suggestions regarding the preparation of the EIR. The required 30 -day public comment period will conclude on April 30, 2009. The next step of the process is the preparation of the Draft EIR, which will include a detailed and thorough analysis of all environmental aspects of the project consistent with the requirements of the California Environmental Quality Act (CEQA). It is anticipated that the Draft EIR will be distributed for public review and comments by September 1, 2009 to meet the November 24, 2009 planned certification date. COUNCIL PRIORITY ----- uu--- .-. -1 PROVIDE MORE PUBLIC PARKS AND RECREATION FACILITIES, WITH EMPHASIS ON ACTIVE FACILITIES WHERE APPROPRIATE; CONSTRUCT A NEW OASIS FACILITY FOR OUR SENIORS Objective Target Action Sunset Ridge Park — obtain PB &R and June 24, 2008 PB &R approved May 20, 2008; Council conceptual approvals Council approved June 10, 2008 November 25, 2008 Awarded contract to EIR Begin CEQA and final design processes consultant and architect; in process Determination of MND or EIR process March 15, 2009 City will process an EIR On Target Environmental clearance for park based on June 2010 EIR Coastal Commission permit approval February 2011 expected (after EIR finalized) Award bid after preparation of construction June 2011 documents and bidding Park open for public use December 2012 Marina Park — conceptual plans prepared and June 31, 2008 Council approved on Nov. 13, approved by PB &R, City Council 2007; PB &R approved December 14,2007 EIR public review period Feb. 23 -April 2, 2009 Achieved City Council EIR hearing May -June, 2009 On Target Environmental clearance expected September, 2009 Completion of construction plans and specs, August 2010 all water quality permits, Army Corps, etc. Advertise, bid and award multiple construction November 2010 contracts for specialized contractors Construction completed and open for public December 2014 use Objective Target Action Coastal Peak Park - construction permits February 10, 2008 Approved February 5, 2008 approved Construction period with The Irvine Company May -March 2009 Construction complete overseeing and paying for construction 120 day construction company maintenance March -June 2009 On Target period City assumes ownership of park and June 2009 continues maintenance period Open to public use September 2009 OASIS Rebuild - construction out to bid Jan. 12 - Feb. 12, 2009 Bid opening Feb. 12, 2009 Award construction bid March 10, 2009 Awarded March 10, 2009 Construction of project March 2009 -Oct. 2010 October 2010 Currently under Construction Construction completed and open for public use Banning Ranch Community Park — Sept. 2008 Application submitted development application submitted Discuss Community Park plans including Ongoing Ongoing size, location and improvements with developer Completion of construction plans and specs, August 2010 all water quality permits, Army Corps, etc. Advertise, bid and award multiple construction November 2010 contracts for specialized contractors Construction completed and open for public December 2014 use Objective Target - Action _ Synthetic Turf Study — RFP for consultant December 2008 Proposals received Dec. 19, services 2008 Award of consultant contract for $23,000 February 2009 Study Awarded to CMX Sports Engineers on April 2, 2009 Phase I- study of existing park sites for usage February-April 2009 Revise to April — June 09 recommendations May 2009 Revise to July 09 PB &R Commission — presentation of study findings Revise to August 09 Presentation to Council of study findings and June 2009 determination of whether to proceed with plans and specs December 2008 Bids received January 6, 2009 CYC- Renovation — project out to construction bid Award construction bid January 2009 February -June 2009 Bid awarded January 27, 2009 Currently under construction Construction of project Construction completed and open for public June 22, 2009 use Comments: Most of these projects are continuations of the related 2008 Council priority and most involve multi -year planning, processing and construction. COUNCIL PRIORITY CONTINUE WITH THE PROCESS TO DETERMINE EVENTUAL LAND USE FOR THE BANNING RANCH PROPERTY, PURSUING BOTH OPEN SPACE AND DEVELOPMENT OPTIONS OUTLINED IN THE GENERAL PLAN Open Space Objective Target January 27, 2009 Action City Council receipt of appraisal report Provided January 27, 2009 Resource Opportunity Group report to Ad May 8, 2009 Hoc Committee on funding availability Meeting with interested parties to discuss April 23, 2009 ROG met with representatives funding availability of Banning Ranch Conservancy City Council receipt of funding availability May 26, 2009 report, and direction to Ad Hoc Committee on next steps Comments: Interested parties have been slow to arrange meetings with ROG, as provided by City Council in January. Both City and Conservancy submitted requests for Measure M environmental funding to OCTA, and City supported Conservancy's request as consistent with our own. Development Objective Target Action City receipt of complete application January 21, 2009 Application material sufficient material to begin environmental review, and will be supplemented as review process proceeds NOP public review period March 9 - April 9, 2009 NOP released March 16; review period ended April 17, 2009 Draft EIR public review period November 2 - December 16, 2009 Planning Commission recommendations April 22, 2010 on development application Final City Council action on development June 8, 2010 application Comments: The two processes — determining whether Banning Ranch can be purchased and preserved for open space and the development of Banning Ranch as a residential project — are being processed concurrently in order to determine at the end of both processes which alternative is most feasible. Development schedule depends on receipt of final project information from applicant and amount of required review by outside agencies. COUNCIL PRIORITY ------- -------------- 0 --------- -- - CONTINUE TO IMPLEMENT WATER QUALITY IMPROVEMENT PROJECTS, WHILE AT THE SAME TIME ASSESSING THE NEED TO ADOPT A TIERED WATER RATE STRUCTURE TO ASSIST IN WATER CONSERVATION EFFORTS Objective Target Action Bring forth a draft Water Quality March 2009 Not completed yet. Key to Management Plan (WQMP) to City plan's completion is Federal Council which identifies fiscal impacts government's pending determination on Stimulus funding for Upper Newport Bay. Establish Council ad hoc Committee on March 2009 Not completed yet. Planned Water Use. Purpose is to assist/review for May 2009. However, City staff action relating to potable water staff has been able to attend purchases and use in the city (with OCWD all relevant OCWD and and MWDOC). MWDOC Water Producers meetings. Consider certain aspects of the WQMP in May 2009 the context of the 2009 -2010 Fiscal Year Budget. Update the City's Water Master Plan (for May 2009 Update of Water Master Plan potable water delivered to homes, city Completed facilities, and businesses). Determine if existing rate structure will accomplish the Plan, including likely increases in water purchasing costs. If not, recommend rate changes. Continue City's water conservation efforts Ongoing via Water Conservation Coordinator. Direct WCC and Utilities Director to follow and update City on other jurisdiction's actions relating to tiered rate structures. Implement any rate changes based on the July 2009 Water Master Plan's needs. Evaluate the city's obligations relating to rate changes under Proposition 208. Study how the updated Water Master May 2009 to October Plan's needs could be addressed with a 2009 tiered -rate structure (to encourage conservation). Determine whether to implement a Tiered October 2009 Rate structure, and suggest the timing thereof. Comments: At first glance, these are two separate goals. But because excessive water use outside of homes and businesses causes urban runoff, and urban runoff has a major impact on water quality in our Bay and Ocean, the two issues are tied together. One challenge in this Priority is to analyze the pros and cons of a Tiered Water Rate (a rate structure that rewards conservation but penalizes overuse) while the City enters a year of water supply uncertainty. Many believe that prolonged drought will force our water suppliers (the Orange County Water District and the Metropolitan Water District of Orange County) to ration water. At the same time, rates charged to the City for water purchases have gone up and will continue to go up. City staff believes that a current review of the Water Master Plan, a plan that tells the City what water distribution facilities need upgrading and recommends an order for these upgrades, will tell us that we cannot sustain the WMP's needs with the current water rates. Therefore, for several reasons, a rate increase is likely to be needed — and likely to be needed before the City can adequately study going to a tiered rate system. The tiered -rate study necessarily will include impacts to the water billing system — including its software, meters, meter reading, and more. Therefore, it is likely that staff will come to the City Council with a rate increase based on the current rate structure followed by a recommendation on applying that rate increase across a rate structure different from what we have today. If there is a simpler way to both accommodate the needs of the Water Master Plan and appropriately address suggested conservation -based rate structures at the same time, we will do so. COUNCIL PRIORITY DEVELOP AND IMPLEMENT A STRATEGY, INCLUDING A FUNDING COMPONENT, FOR THE DREDGING OF THE LOWER BAY Objective Target Action Advocate in Washington DC and with the US February 2009 to May 2009 DC advocate Jim Crum has been Army Corps of Engineers (LA District) for the involved in this discussion. As of Corps' consideration of a Lower Newport Bay the date of this report, no news (LNB) dredging project within the Economic yet on Stimulus funding for the Stimulus Package (American Recovery and Upper Bay. Because of "shovel - Reinvestment Plan of 2009). ready" requirement, City is seeking Federal FY 10 appropriations for LNB. Council Member Daigle went to DC on this matter March 4 -5, 2009. Continue City's current work on toxicity testing of Ongoing City Council heard a presentation the LNB and its analysis of the possible use of a about the CAD at its April 14, Confined Aquatic Disposal (CAD) site for certain 2009 Study Session. materials. Develop project alternatives (including funding) May 2009 Staff to develop with the for the LNB, including a range of options as consultation and advice of: follows: • Harbor Commission • No federal funding. • Coastal -Bay Committee 100% federal funding of the Federal 0 Bay Issues Committee Navigational Channel. • Corps staff • The "one and done" plan (encourage the • Consultants (Larry Paul, Corps to fund a complete dredging project then Tom Rossmiller, Jim Crum) remove the obligation from the Corps' operations and maintenance list). Other alternatives in between the above. Consider any possible alternatives and funding May 2009 recommendations within the City's FY 2009- 2010 budget. When Stimulus Package is adopted, advocate February 2009 and onward See above. before the Corps for LNB project implementation (within the Corps' O &M allocation). Directly assist Corps with any studies, Ongoing City's current testing and CAD environmental reports, or permitting required analysis has the City taking the with the LNB project. lead on these issues, pending any Congressional authorization for the US Army Corps to work on them. Comments: A Lower Newport Bay Dredging Project is a long- hoped -for goal of the community, given the expanse of shoaling in the Harbor. A full project may cost in the range of $15 -20 million. The City has attempted to jump -start a future project by advancing much of the testing and analysis that the Corps will have to do before an LNB project is shovel- ready. The City is optimistic that the Corps will receive a large amount of appropriation in any Economic Stimulus Package within the new Congress. Some of this is likely to go to the Upper Bay Ecosystem Restoration Project, which would enable the City to focus its federal FY 2010 appropriations requests on securing Corps funding for dredging the Lower Newport Bay. Dredging the LNB is not a "new" project for the Corps. It is an ongoing, current Operations and Maintenance ( "O &M ") Corps obligation (yet one that the Corps has consistently zeroed out in funding). As such, the prospects look better than usual for getting the project done in 2009 or 2010, if this project competes successfully against other Corps O &M needs.