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HomeMy WebLinkAbout22 - Strategic Plan for Fiscal and Economic StabilityCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 22 June 9, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949 - 644 -3222, swood @city.newport- beach.ca.us SUBJECT: Annual Review and Update of Strategic Plan for Fiscal and Economic Stability RECOMMENDATIONS: 1. Receive and file the Annual Review of the Strategic Plan (Attachment 1). 2. Approve the proposed updates to the Strategic Plan (Attachment 2). 3. Add to the 2009 -10 budget checklist $15,000 for professional and technical services to implement the Strategic Plan. BACKGROUND: The City Council adopted the Strategic Plan for Fiscal and Economic Sustainability on July 24, 2007. Objective 3.5 of the Strategic Plan directs staff to provide semi - annual reports on program targets and effectiveness to the Economic Development Committee (EDC). In addition, an annual update is to be provided to the City Council, with recommendations from the EDC regarding new programming and/or resources needed. Immediately after adoption of the Strategic Plan, there were staff vacancies in the Economic Development Division, and implementation was delayed for some months. This is the first annual review of the Strategic Plan. DISCUSSION: Annual Reoort on Proaress A subcommittee of EDC worked with staff to prepare the annual review. The review report addresses each objective and action step in the Strategic Plan, and explains the progress that has been made. There are a total of 79 action steps in the Strategic Plan (a few of which are repeated under more than one objective). Of these, 63 action steps have been completed, are in progress, or are ongoing activities that should continue for the indefinite future. The EDC reviewed and approved the annual report at its meeting Annual Review and Update of Strategic Plan for Fiscal and Economic Stability June 9, 2009 Page 2 of May 20, 2009. Both staff and EDC are pleased with the progress that has been made, and continue to find the Strategic Plan to be a good tool for setting economic development priorities and allocating staff and consultant resources. Strategic Plan Update Any planning tool needs to be reviewed and updated periodically; however. As part of the annual review, the EDC subcommittee and staff also recommended revisions to the Strategic Plan to eliminate objectives and action steps that have been completed, revise or delete those that are no longer relevant to our economic development program, add items that have become priorities, and revise timelines on items that are in progress or have not been started. EDC also reviewed these changes on May 20, and recommended that Council approved the update of the Strategic Plan. The proposed changes are shown in st;ikeeat /underline in Attachment 2, and the most significant changes are summarized below. • Objective 3. 1, Master Plan for West Newport Mesa Add new Action Step 1, to form a West Newport business owners association by June 2011. Action steps regarding a master plan are to be undertaken after formation of an association. • Objective 3.3, Business Assistance Clearinghouse Delete Action Step 3, to design an informational package for distribution to potential businesses. Instead, EDC appointed a subcommittee to work with staff on coordinating resources available through our contracts with CoStar and Buxton, and personal contacts made to staff and EDC members. • Objective 3.4, Leading Indicators Delete. EDC believes that regional employment and economic data is less important to Newport Beach's economic development program than local information that will be coordinated in Objective 3.3. • Objective 3.5 (formerly 3.6), Fiscal Impact Model Replace Action Steps 1 and 2 with new Action Step 1, which calls for update and use of the model as needed, rather than annually. There has not been a need for fiscal impact analysis of a project since the General Plan update, and staff has not updated the model. The next known need will be for analysis of Banning Ranch development and annexation. • Objective 7.4, Private Alternative Transportation Delete. Based on the experience of earlier attempts, EDC believes that privately owned and operated alternative transportation services are not viable, and this is not an activity for the City to pursue at this time. • Objective 7.5 (new), Coast Highway Add new objective related to negotiating with Caltrans to acquire ownership of Coast Highway from Jamboree Road to the Santa Ana River. Z Annual Review and Update of Strategic Plan for Fiscal and Economic Stability June 9, 2009 Page 3 Staff Resources When the City Council considered the original Strategic Plan, staff provided a spreadsheet showing our estimate of Economic Development Division staff time needed to implement the Strategic Plan. An updated spreadsheet, reflecting the proposed plan updates, is included as Attachment 3. Action steps that are the responsibility of other City departments or divisions (e.g., Public Works, Harbor Resources) are not shown. For most objectives and action steps, a number of hours for each month of activity is shown. In some cases, the time is shown as an "R," representing a reserve of staff time. These are action items for which the staff commitment is unrelated to a specific action step, is unknown, or is out of the City's control and could require staff time when opportunities for economic development projects arise. The total reserve of staff time shown at the bottom of the spreadsheet is 25% of the total Economic Development Division professional staff time available. In addition to the "R" action items, this reserve also provides for the time that staff now spends to support the EDC and in an "ombudsman" role, assisting businesses who want to locate or expand in Newport Beach with information and assistance through the City's permitting process. The bottom rows of the spreadsheet provide a subtotal of Economic Development Division staff time needed to implement the Strategic Plan, the 25% reserve, and time for administration of the Community Development Block Grant and general administration (staff meetings, employee supervision, budgeting, etc.). The total projected staff need is then compared with the total staff hours available with two professional Economic Development staff positions (with adjustments for holidays and leave time). Based on the estimates in the spreadsheet, staff will be able to implement the Strategic Plan as recommended by EDC for next fiscal year with existing staff resources, and we will fully utilize these resources for economic development. There are surplus hours projected for a few months, which experience has shown are taken up with unanticipated assignments such as developing and implementing the ban on expanded polystyrene products. Consultant Resources Several of the action steps outlined in the Strategic Plan require the use of consultants to provide information and analysis that will enable the City to achieve the plan's goals, especially in the areas of improving the business mix in older commercial areas (including an updated vision plan for Balboa Village), and exploring the feasibility of small scale lodging. Staffs estimates of these costs are shown on the following page; they total $51,000 to $60,000. 3 Annual Review and Update of Strategic Plan for Fiscal and Economic Stability June 9, 2009 Page 4 Project Estimated Cost Real Estate Multiple Listing Services CoStar Subscription $10,000 Business Recruitment Buxton Scout Subscription $12,000 Website Update $10,000 Balboa Village Vision Plan $5,000 - 10,000" Small -scale lodging feasibility study $4,000 -8,000 Retail trends /sales tax tracking $10,000 - Implementation of parking recommendations Unknown 'Technical assistance only; assumes in -house staff preparation of vision plan. '" If new consulting service is desired. Funding Availability: The recommended budget for 2009 -10 includes $42,000 in the Economic Development professional and technical services account (2720- 8080), of which $32,000 is allocated for ongoing CoStar and Buxton contracts and to update the website. EDC has recommended that the City Council add to the budget checklist an additional $15,000 for this account. Submitted by: h4ron Wood Manager Assistant City Attachments: 1. Annual Review of the Strategic Plan for Fiscal and Economic Stability 2. Proposed Update of Strategic Plan for Fiscal and Economic Stability 3. Actions and Economic Development Staff Time Needed q Attachment 1 2009 Annual Review of the Strategic Plan for Fiscal and Economic Sustainability Goal 1 — The City shall facilitate the revitalization of older commercial areas. Objective 1.1: Improve business mix Action Steps 1, 2, and 3: The City hired Buxton Community ID. They completed trade area and market studies of both Balboa Village and Lido /Cannery/McFadden. They provided a list of potential business matches and created Recruitment Packages for business. The Balboa Village BID was involved in selecting the "top" retail picks for its area. Buxton sent out letters of introduction on behalf of City this year. Staff is starting to make contact and set up meetings. The Economic Development Administrator will be attending ICSC in May to pursue leads. Action Step 4: No progress due to staff vacancies and late start on Action Steps 1, 2 and 3. [Begin FY 2009/2010] Objective 1.2: Mixed use development Action Step 1: The Zoning Code Update is progressing and hearings before the Planning Commission should begin in September. The revisions to the Zoning Code include flexible regulations for mixed -use development. The Coastal Commission has approved most amendments to the Coastal Land Use Plan that would allow mixed -use development. City Council approval of Commission modifications to the City's amendment request is pending. Objective 1.3: Parking Facilities Action Steps land 2: The City hired Walker Parking Consultants to perform parking studies of five older commercial areas and to review the parking portion of the Zoning Code update. Walker has completed its review of the Zoning Code parking regulations, and thr ee of the geographical area studies — Corona del Mar, Balboa Island and Mariner's Mile. These reports will be presented to the City Council at study sessions in June. The Balboa Village report is in progress and Walker has not yet started on Lido /Cannery/McFadden. Action Step 3: Implementation of recommendations will be considered after City Council review and approval of recommendations. 1 I Objective 1.4: Business Association Liaison Action Steps 1 and 2: The City has continued to work with the BIDs and Mariners' Mile Business Owners Association. A Tourism BID that includes six hotels was formed at the request of the hotels. New By -laws have been drafted and adopted by Marine Avenue and are in the process of being reviewed by Balboa Village. The Restaurant BID is sponsoring two Restaurant Weeks in 2009. In 2008, the City audited the BID Administrator under contract to the City. Also, staff worked with the BID Administrator to create a new collections procedure that is in process this year to reduce the amount of outstanding assessments. Objective 1.5: Campus Tract Action Step 1: The draft Zoning Code establishes a new zoning district for the Campus Tract to implement General Plan policies that allow auto sales and rental car uses. The City Council approved a sales tax sharing agreement with European Motorcars prior to its expansion and move from Mariners Mile to the Campus Tract. Council also approved a zoning overlay to enable Avis to expand operations. Goal 2: The City shall support business efforts to optimize retail sales capture. Objective 2.1: Commercial zoning Action Step 1: The Economic Development staff is assisting in the development of the new Zoning Code. Public hearings before the Planning Commission should begin in September. More flexibility has been introduced into the sections dealing with eating and drinking establishments and parking requirements. Objective 2.2: Newport Center Action Steps 1 and 2: The North Newport Center Planned Community was adopted to implement General Plan policies allowing for additional retail development in Fashion Island. Staff is facilitating development of the Nordstrom store, scheduled to open in March 2010. New tenants have opened or are scheduled to open, although the economic downturn has also resulted in four stores closing. Economic Development staff will be available to support Irvine Company staff in recruiting new tenants at the International Council of Shopping Centers (ICSC) conference in May. Objective 2.3: Airport Area Action Step 1: As noted in Objective 1.5, the City assisted with the expansion and relocation of auto sales and rental businesses. Staff is working with Koll and Conexant in connection with their applications for residential and mixed use development as 7 A provided in the General Plan. The Planning Commission has acted on a conceptual plan for these properties. Objective 2.4: Auto Sales Action Step 1: Staff regularly works with brokers looking for sites in Newport Beach, and directs them to the Airport Area. The City entered into a sales tax sharing agreement with Newport European Motorcars to expand and relocate its facility in the Airport Area. The existing sales tax sharing agreement with Newport Lexus is nearing conclusion. Objective 2.5: Performance Indicators (retail and sales tax) Action Step 1: The Revenue Division tracks retail sales tax data. Economic Development staff has not reviewed the effectiveness of existing reporting tools due to staff vacancies and late start on other objectives. Four meetings of the EDC in 2008 -09 focused on retail performance. At two meetings the geographic representatives on the EDC presented information on how each commercial area was faring. The Director of Administrative Services and Revenue Manager made two reports to the EDC as well as the City Council on the impacts of the current economic situation on property, sales and transient occupancy tax revenue. Goal 3: The City shall facilitate the development, attraction and retention of a variety of businesses that strengthen the vitality of the local economy, particularly businesses that capitalize on market and demographic changes and opportunities that emerge in key economic centers. Objective 3.1: Master Plan for West Newport Mesa Area Hoag Hospital relocation of development potential was approved last year. However,- due to economic conditions, Hoag has delayed implementation of major portions of its planned development. Master planning for the rest of the surrounding area has not begun. Objective 3.2: Flexible Zoning Action Steps 1 and 2: ED staff has attended pertinent General Plan Implementation Committee meetings in support of restaurant uses, mixed uses, parking, signs etc. Objective 3.3: Business Assistance Clearing House Action Step 1: The City has hired a consultant, who is updating the City website. When this is complete, the Economic Development page will also be updated. 3 7 Action Step 2: The City has contracted with Costar since 2007. Staff has used the information to assist in selecting which leads provided by Buxton (Objective 1.1) to pursue, to provide potential sites to other potential businesses that have contacted staff, and to provide the City Council with information on commercial vacancies. Action Step 3: There has not been a demonstrated demand for a standard informational package. Economic Development staff has provided information and support to almost a dozen businesses interested in Newport Beach locations or applying for land use or building permits. Objective 3.4: Leading Indicators Action Step 1: Rather than hiring a firm to prepare a study that could not keep up with the current volatile trends, staff has been taking advantage of free economic outlook seminars and webinars from Costar and Buxton to keep current on real estate and retail trends. Staff also attended the OCBC Economic Forecast Program presented by CSU Fullerton. Staff also used these resources to report to the City Council on economic indicators. Objective 3.5: Program targets reporting Action Steps 1 and 2: This is the first annual report. The Strategic Plan timeline was updated a year ago in lieu of an annual report since there had not been any staff in place to make progress. Objective 3.6: Fiscal Impact Model Action Steps 1, 2, & 3: The fiscal impact model has not been updated, nor have procedures for its use been established. Staff has found that few development proposals have warranted fiscal impact analysis, and it may be more appropriate to update and use the fiscal impact model on an "as needed" basis. Objective 3.7: Economic Development Policy Action Steps 1, 2, and 3: EDC formed a subcommittee to review and make recommendation to the City Council on updating their Economic Development Policy. The full EDC approved the draft Economic Development Policy update and forwarded it to the Council for action. The City Council approved the recommended Policy update on June 10, 2008. Staff supported the EDC in updating the City Council's Economic Development Policy. Objective 3.8: Economic Development Committee Structure 4 me Action Steps 1, 2, and 3: EDC appointed a sub - committee to draft revisions to the resolution establishing EDC and made recommendations to the City Council in connection with those revisions. The City Council adopted the EDC's recommendation and revised the resolution concerning EDC. Goal 4: The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor. Objective 4.1: Water- Dependent Marine Businesses Action Step 1: The draft Zoning Code is being written to balance the need to maintain water dependent uses and to allow other uses that are permitted by the General Plan Land Use Policies, Objective 4.2: Non - Water- Dependent Marine Businesses Action Step 1: Economic Development staff reviewed reports to the General Plan Implementation Committee concerning incentives that could be included in the updated Zoning Code to facilitate the preservation and relocation of marine businesses. No incentives were found to be feasible under the limitations of the General Plan and Charter Section 423, Objective 4.3: Dredging Lower Newport Bay Action Steps 1 and 2: A plan is being developed and funds are being sought. Testing for toxic substances has already begun on the lower bay to determine how to dispose of the material to be removed. The City has budgeted $400,000 for this process and will be committing an additional $200,000 to complete testing and to develop a confined aquatic disposal (CAB) site in the harbor. The Army Corps of Engineers is receiving $17.3 million in stimulus funds to complete dredging of the upper bay, which should increase our ability to secure funds for the lower bay. Objective 4.4: Regulatory Compliance The fees and permitting process for water uses and moorings are being reviewed by the Finance Committee and the Harbor Commission. The Coastal /Bay Water Quality Committee and the Coastal /Bay Use subcommittee continue to monitor water quality. A ban on use of expanded polystyrene food containers by restaurants in Newport Beach goes into effect on June 1, 2009 in hopes of decreasing trash on the beach and in the ocean. The City has been negotiating with the National Marine Fisheries seeking permission for the City to regulate eel grass. As part of that regulation the City is also seeking permission to develop an eel grass mitigation bank that may be used by residents to meet their preservation obligation. 5 I Objective 4.5: Water Transportation Services Action Steps 1 and 2: The EDC has forwarded to City Council a proposal to create a Committee of Interested Individuals to Investigate a Summer Water Taxi Service. Goal 5: The City will enhance the boating services of Newport Harbor. Objective 5.1: Additional Guest Boat Slips Action Step 1: Marina Park has been designed, including an additional twenty- three (23) boat slips. The public review period for the EIR on this project concluded on April 13, 2009. Objective 5.2: Develop Additional Capacity to Tie Up Small Boats Action Step 1: See Action Step 1 under Objective 5.1. Action Step 2: The Rhine Wharf project has.permits, the design is being refined and the project will go out to bid in late summer of 2009. Action Step 3: Harbor Resources staff is close to submitting permit applications for Fernando Street, 15'h Street and 191h Street public docks. Objective 5.3: Dinghy Docking Action Step 1: Staff reviews dinghy docking regulations annually. Objective 5.4: Policy on Visiting Boaters Action Steps 1, 2, 3 and 4: See Objectives 5.1, 5.2, and 5.3. The City, in conjunction with Department of Boating and Waterways, amended the Municipal Code to limit long -term anchorage off of Big Corona Beach, in response to problems caused by non - seaworthy vessels leaking sewage during prolonged stays and /or being washed ashore and breaking up on the beach. Goal 6: The City shall support the careful expansion of visitor - serving businesses and facilities. Objective 6.1: Small Scale Lodging Action Steps 1, 2 and 3: These items have not commenced formally. Staff believes that the primary barrier to bed and breakfast inns is Newport Beach's lack of residential properties that are large enough and have sufficient parking. Objective 6.2: Vacation Rentals 0 NJ Action Steps 1 and 2: The EDC received a comprehensive report on the short -term rental industry in Newport Beach from Burr White, the City's largest short-term rental property manager. Cade revisions and development of a "Seal of Approval" program are still pending. A Good Neighbor Policy including decals with owner contact information was developed and put into operation beginning with the summer of 2008. Objective 6.3: Marketing and Promotion Action Step 1: The City Manager is an ex officio member of the CVB Board of Directors, and three members of the EDC are currently on the CVB board. Action Step 2: The City provides financial support to the CVB, with a new five year contract under which the CVB will continue to receive 18% of the TOT. ED staff worked with the CVB to bring to the City Council a proposal to form a Tourism Business Improvement District (TBID), which became effective April 28, 2009. Action Step 3: The City continues to provide support to annual events including the Newport Beach Film Festival and Restaurant Week. Objective 6.4: Beach /Bay Activities Promotion Action Step 1: The EDC developed a proposal for a Special Events Advisory Committee to provide the City Council with an analysis of the return to the community, both tangible and intangible, of City supported events and to create a master calendar of events. The City has made special accommodations for the Orange County Marathon to occur at a different time and on a new route showcasing the beach, and for the Pacific Coast Triathlon to occur in July to accommodate international competition qualifying schedules. Goal 7: The City will seek to minimize the economic impact of traffic congestion and will take affirmative steps to improve traffic flow. Objective 7.1: Traffic Control Synchronization Action steps 1, 2, and 3: The City retained a traffic signal consultant to complete a traffic signal communication master plan and design traffic signal upgrades. Action Step 4: The traffic light synchronization installation program has begun. Construction of the new Traffic Management Center (TMC) has been completed. The first phase of the Citywide Traffic Signal Modernization project is fully operational and 22 signalized intersections are connected to the TMC. Some intersection and road improvements are occurring at the same time. The goal is to update all of the 117 City- 7 operated traffic signals. City Council awarded the bid for Phases 2 & 3 on April 14, 2009. Objective 72 Roadway Improvements Actions Steps 1 and 2: Consultants were retained to update the Fair Share Fee, and their preliminary reports and recommendations were presented to the General Plan /LCP Implementation Committee. The reports are being revised in response to comments from the development community, and will be presented to the GP /LCP Committee when the Committee completes its review of the draft Zoning Code. Action Step 3: No General Plan improvements have been designed and constructed. However, the North Newport Center Development Agreement includes provisions for funding of improvements in the Newport Center area. Objective 7.3: Regional Traffic Improvements Action Step 1: The City has secured Measure M funding for the widening of Jamboree Road from Bristol Street to Fairchild, and design of this project is in progress. Objective 7.4: Alternative Transportation Action Steps: A Public Bike Share demonstration is planned for the Balboa Peninsula and OCTA facility in Newport Center for July. Objective 7.5: Cooperation with Adjacent Cities Actions Step 1: IBC litigation settlement funds were used to complete a study of traffic impacts from development in that part of Irvine. Additional study is being conducted to explore mitigation solutions. Action Step 2: Newport Beach participated in OCTA's study of potential improvements to Newport Boulevard between SR 55 and Coast Highway. Goal 8: The City will administer its development review and permitting processes in an efficient, solution oriented and customer friendly manner. Objective 8.1: Implement Recommendations of Development Review Evaluation Action Step 1: Assistant City Manager meets frequently with Directors of Building, Planning and Public Works and Fire Marshal; and interdepartmental task forces have addressed work flow, submittal requirements, technology improvements and training. Economic Development staff act as project facilitators for commercial projects. Permits Plus functionality has been increased to provide more regular reporting to department f:3 IJL managers. All departments use Permits Plus to post plan check corrections. Planning staff is at full complement, and senior staff in the Planning and Building Departments is available at the permit counter at all times. Application submittal requirements have been simplified, clarified and coordinated among departments, and are available on the City website. Objective 8.2: Enhanced Communication with Applicants Action Step 1: In addition to on -line information noted in Objective 8.1, communication with applicants has been increased through meetings of management staff with development community representatives to assess City processes, discuss areas for improvement and agree on changes. Building Department has implemented policy of meeting with applicants whenever all plan check corrections have not been resolved after two reviews. Objective 8.3: Training Action Step 1: Planning, Building, Harbor Resources, Public Works, General Services and Utilities staff have all participated in Customer Care Initiative training developed specifically for the development review function. Objective 8.4: Zoning Code Update Action Step 1: The General Plan Implementation Committee is reviewing a draft of the comprehensive rewrite of the Zoning Code. Economic Development staff provided input in areas such as parking and restaurant regulations. Public hearings before the Planning Commission should begin in September. 0 13 TABLE OF CONTENTS I. INTRODUCTION ............................................................... ............................... 3 The Visioning Process ................................................ ............................... 3 II. STRATEGIC PLAN FOR FISCAL & ECONOMIC SU S TA I NABI LITY ........................................................... ............................... 4 VISIONSTATEMENT ..................................................... ..............................4 THE ROLE OF THE CITY ............................................ ............................... 4 GOALS, OBJECTIVES AND ACTION PLANS .... ............................... 6 Goal 1: The City shall facilitate the revitalization of older commercialareas ..................................................... ..............................6 Goal 2: The City shall support business efforts to optimize retail sales capture .............................. .............................10 Goal 3: The City shall facilitate the development, attraction and retention of a variety of businesses that strengthen the vitality of the local economy, particularly businesses that capitalize on market and demographic changes and opportunities that emerge in key economic centers.......................................................................... .............................13 Goal 4: The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor . ............................... ..........................171 -6 Goal 5: The City will enhance the boating services of NewportHarbor ....................... ............................... ...........................2224 Goal 6: The City shall support the careful expansion of visitor- serving businesses and facilities . ............................ 242-3 Goal 7: The City will seek to minimize the economic impact of traffic congestion and will take affirmative steps to improve traffic flow .......... ............................... ...........................2726 Goal 8: The City will administer its development review and permitting processes in an efficient, solution oriented and customer friendly manner ....................... ...........................3024 NOTE ON ADDITIONAL REFERENCES ................... ..........................3331 - Strategic Plan For Fiscal & Economic Sustainability Page 2 Iq I. INTRODUCTION The Strategic Plan for Fiscal and Economic Sustainability is designed to serve as a work program for the City Council, City staff, the City Economic Development Committee (EDC) and other civic leaders to promote and sustain fiscal and economic vitality in Newport Beach. It is intended, in part, as a companion document for the General Plan, to assist the City in implementing portions of the General Plan that affect economic development in the City. Beyond City land use and development policy, however, the Strategic Plan for Fiscal and Economic Sustainability includes goals and objectives to enhance the business climate in the City. The Strategic Plan for Fiscal and Economic Sustainability focuses on a shorter time frame than does the General Plan, since economic conditions and priorities can change more rapidly than do planning goals related to community character and land use patterns. The work program included here contemplates at most a five -year time horizon, and it is assumed that annual reviews of progress and re- assessments of priorities will be undertaken as a prelude to the City's annual budget process. The o. °rim ;„a,, ( mmi{m °nf n, inefinancial and staff resources and action steps elements embedded within the main document are estimates for commitments that may be necessary to undertake the objectives, as well as cost estimates that may be associated with those commitments as are available at this time. The Visioning Process The City initiated a Visioning Process in January of 2002, ahead of its effort to update the General Plan, which culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input Strategic Plan For Fiscal & Economic Sustainability Page 3 5 on a wide range of issues for consideration in the General Plan Update. Based on public input, a vision for the future of Newport Beach was developed by the citizen General Plan Advisory Committee (GPAC), which describes the City's desired 'end state' and what the community hopes to have achieved by 2025. Under the heading, "Growth Strategy, Land Use and Development," the vision states in part, "[w]e have a conservative growth strategy that emphasizes residents' quality of life — a strategy that balances the needs of the various constituencies and that cherishes and nurtures our estuaries, harbor, beaches, open spaces and natural resources. Development and revitalization decisions are well conceived and beneficial to both the economy and our character...." The process also ascertained the public's input on a range of more specific issues. There was broad community consensus on some economic issues, and more diverse opinion on others. The full detail of the vision developed by GPAC is contained in the report noted above. II. STRATEGIC PLAN FOR FISCAL & ECONOMIC SUSTAINABILITY VISION STATEMENT Newport Beach shall maintain and enhance its local economy, a high quality of life, economic opportunities for its citizens and the sustained fiscal health of the City, while respecting and supporting the residential and waterfront character of the community and its natural resources and amenities. THE ROLE OF THE CITY An important purpose of this plan is to help focus limited City resources on activities that are most cost - effective and address squarely the City's priorities for economic development. The private sector is the primary engine for economic progress in Newport Beach. The City is fortunate to enjoy sustained periods of relative prosperity during which little government involvement is warranted Strategic Plan For Fiscal & Economic Sustainability Page 4 a beyond providing clear land use policies and an efficient, predictable entitlement process. It is also important for the City to sustain economic and fiscal health throughout the ups and downs of the business cycle. Typically, cities can play a role in several areas to support economic development, as follows: 1. Land Use and Development Policy The City's main effort recently has been to update the General Plan; and the implementation of new land use and development policies in various areas of town will have a significant impact in supporting economic development. 2. Infrastructure Regarding infrastructure, the City has made strategic investments in public improvements, such as the streetscape work in the Balboa Village, Corona del Mar, Marine Avenue and Mariner's Mile commercial districts, but in general it has only limited resources to invest in new infrastructure. The City must instead focus on implementing policies to ensure that new development pays for new infrastructure and that the fiscal balance of the developing land use mix can sustain the City's ability to operate and maintain the existing infrastructure. To the extent the City can address infrastructure improvements, improvements in circulation and parking facilities will benefit the economic growth of the community most. 3. Incentives The City can offer incentives to development such as shared parking opportunities, in -lieu parking fees, tax - exempt financing, and sales tax sharing. These kinds of incentives can improve the market feasibility of desired kinds of Strategic Plan For Fiscal & Economic Sustainability Page S '`] I improvement in the economic environment without necessarily requiring expenditures of existing public funds. GOALS, OBJECTIVES AND ACTION PLANS The Strategic Plan for Fiscal and Economic Sustainability for the City of Newport Beach includes eight major goals for economic development in the City: • Goal 1: Facilitate revitalization of the City's older commercial areas; • Goal 2: Support efforts to optimize retail sales capture; • Goal 3: Facilitate the development of businesses that strengthen the vitality of the local economy; • Goal 4: Facilitate an economically viable and vital Newport Harbor; • Goal 5: Enhance the boating services of Newport Harbor; • Goal 6: Support careful expansion of visitor - serving businesses and facilities; • Goal 7: Seek methods to improve traffic flow and minimize the economic impact of traffic congestion; • Goal 8: Administer the development review and permitting processes in an efficient and customer friendly manner. The following discussion briefly outlines these goals, along with the more detailed objectives and implementation actions associated with each goal. Goal 1: The City shall facilitate the revitalization of older commercial areas Objective 1.1 - Improve the business mix of older commercial districts, especially regarding their resident serving usefulness, through improvement in the quality, breadth and sales tax generation of such areas, taken as a whole. Identified areas include Balboa Village and other Balboa Peninsula commercial districts, as well as Marine Avenue, Old Newport Boulevard, -aFtd West Newport , and Corona del Mar. Strategic Plan For Fiscal & Economic Sustainability Page 6 FOI Attachment 2 CITY OF NEWPORT BEACH STRATEGIC PLAN FOR FISCAL AND ECONOMIC SUSTAINABILITY Adopted July 24, 2007 Updated June 2009 I TABLE OF CONTENTS I. INTRODUCTION ............................................................... ............................... 3 The Visioning Process ................................................ ............................... 3 II. STRATEGIC PLAN FOR FISCAL & ECONOMIC SUSTAINABI LITY ........................................................... ............................... 4 VISION STATEMENT ..................................................... ..............................4 THE ROLE OF THE CITY ............................................. ..............................4 GOALS, OBJECTIVES AND ACTION PLANS .... ............................... 6 Goal 1: The City shall facilitate the revitalization of older commercialareas .................................................... ............................... 6 Goal 2: The City shall support business efforts to optimize retail sales capture .............................. .............................10 Goal 3: The City shall facilitate the development, attraction and retention of a variety of businesses that strengthen the vitality of the local economy, particularly businesses that capitalize on market and demographic changes and opportunities that emerge in key economic centers........................................................................ ............................... 13 Goal 4: The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor ................................. .............................16 Goal 5: The City will enhance the boating services of NewportHarbor ........................................................ .............................22 Goal 6: The City shall support the careful expansion of visitor- serving businesses and facilities .... .............................24 Goal 7: The City will seek to minimize the economic impact of traffic congestion and will take affirmative steps toimprove traffic flow ........................................... .............................26 Goal 8: The City will administer its development review and permitting processes in an efficient, solution oriented and customer friendly manner ......................... .............................29 NOTE ON ADDITIONAL REFERENCES .................... .............................33 Strategic Plan For Fiscal & Economic Sustainabllity Page 2 ao I. INTRODUCTION The Strategic Plan for Fiscal and Economic Sustainability is designed to serve as a work program for the City Council, City staff, the City Economic Development Committee (EDC) and other civic leaders to promote and sustain fiscal and economic vitality in Newport Beach. It is intended, in part, as a companion document for the General Plan, to assist the City in implementing portions of the General Plan that affect economic development in the City. Beyond City land use and development policy, however, the Strategic Plan for Fiscal and Economic Sustainability includes goals and objectives to enhance the business climate in the City. The Strategic Plan for Fiscal and Economic Sustainability focuses on a shorter time frame than does the General Plan, since economic conditions and priorities can change more rapidly than do planning goals related to community character and land use patterns. The work program included here contemplates at most a five -year time horizon, and it is assumed that annual reviews of progress and re- assessments of priorities will be undertaken as a prelude to the City's annual budget process. The PFeliminapi Gammitment Gutlinefinancial and staff resources and action steps elements embedded within the main document are estimates for commitments that may be necessary to undertake the objectives, as well as cost estimates that may be associated with those commitments as are available at this time. The Visioning Process The City initiated a Visioning Process in January of 2002, ahead of its effort to update the General Plan, which culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input Strategic Plan For Fiscal & Economic Sustainability Page 3 a� on a wide range of issues for consideration in the General Plan Update. Based on public input, a vision for the future of Newport Beach was developed by the citizen General Plan Advisory Committee (GPAC), which describes the City's desired 'end state' and what the community hopes to have achieved by 2025. Under the heading, "Growth Strategy, Land Use and Development," the vision states in part, "(w)e have a conservative growth strategy that emphasizes residents' quality of life — a strategy that balances the needs of the various constituencies and that cherishes and nurtures our estuaries, harbor, beaches, open spaces and natural resources. Development and revitalization decisions are well conceived and beneficial to both the economy and our character...." The process also ascertained the public's input on a range of more specific issues. There was broad community consensus on some economic issues, and more diverse opinion on others. The full detail of the vision developed by GPAC is contained in the report noted above. II. STRATEGIC PLAN FOR FISCAL & ECONOMIC SUSTAINABILITY VISION STATEMENT Newport Beach shall maintain and enhance its local economy, a high quality of life, economic opportunities for its citizens and the sustained fiscal health of the City, while respecting and supporting the residential and waterfront character of the community and its natural resources and amenities. THE ROLE OF THE CITY An important purpose of this plan is to help focus limited City resources on activities that are most cost - effective and address squarely the City's priorities for economic development. The private sector is the primary engine for economic progress in Newport Beach. The City is fortunate to enjoy sustained periods of relative prosperity during which little government involvement is warranted Strategic Plan For Fiscal & Economic Sustainability Page 4 as beyond providing clear land use policies and an efficient, predictable entitlement process. It is also important for the City to sustain economic and fiscal health throughout the ups and downs of the business cycle. Typically, cities can play a role in several areas to support economic development, as follows: 1. Land Use and Development Policy The City's main effort recently has been to update the General Plan; and the implementation of new land use and development policies in various areas of town will have a significant impact in supporting economic development. 2. Infrastructure Regarding infrastructure, the City has made strategic investments in public improvements, such as the streetscape work in the Balboa Village, Corona del Mar, Marine Avenue and Mariner's Mile commercial districts, but in general it has only limited resources to invest in new infrastructure. The City must instead focus on implementing policies to ensure that new development pays for new infrastructure and that the fiscal balance of the developing land use mix can sustain the City's ability to operate and maintain the existing infrastructure. To the extent the City can address infrastructure improvements, improvements in circulation and parking facilities will benefit the economic growth of the community most. 3. Incentives The City can offer incentives to development such as shared parking opportunities, in -lieu parking fees, tax - exempt financing, and sales tax sharing. These kinds of incentives can improve the market feasibility of desired kinds of Strategic Plan For Fiscal & Economic Sustainability Page 5 �3 improvement in the economic environment without necessarily requiring expenditures of existing public funds. GOALS, OBJECTIVES AND ACTION PLANS The Strategic Plan for Fiscal and Economic Sustainability for the City of Newport Beach includes eight major goals for economic development in the City: • Goal 1: Facilitate revitalization of the City's older commercial areas; • Goal 2: Support efforts to optimize retail sales capture; • Goal 3: Facilitate the development of businesses that strengthen the vitality of the local economy; • Goal 4: Facilitate an economically viable and vital Newport Harbor; • Goal 5: Enhance the boating services of Newport Harbor; • Goal 6: Support careful expansion of visitor - serving businesses and facilities; • Goal 7: Seek methods to improve traffic flow and minimize the economic impact of traffic congestion; • Goal 8: Administer the development review and permitting processes in an efficient and customer friendly manner. The following discussion briefly outlines these goals, along with the more detailed objectives and implementation actions associated with each goal. Goal 1: The City shall facilitate the revitalization of older commercial areas Objective 1.1 — Improve the business mix of older commercial districts, especially regarding their resident serving usefulness, through improvement in the quality, breadth and sales tax generation of such areas, taken as a whole. Identified areas include Balboa Village and other Balboa Peninsula commercial districts, as well as Marine Avenue, Old Newport Boulevard,, —and West Newport , and Corona del Mar. Lead: Economic Development staff Strategic Plan For Fiscal & Economic Sustainability Page 6 P Support: Business Improvement District Boards; Planning Commission; City Council; Planning Department staff; Chamber(s) of Commerce representatives; consultant support. Financial /Staff Resources: Staff time — approx. 400 hours annually (1/10 total E.D. staff time) plus 350 hours for Balboa Village plan; Cost: $12,000 for Buxton Scout subscription: $5,000- $10,000 for Balboa Village vision plan , Action Steps: 1. Contract with consulting firm to prepare specific reports for each commercial village and /or identified sub -area, utilizing existing and new data to provide research on commercial area market and purchasing trend detail. Firm should provide business attraction recommendations, contact information, and targeted retailer marketing packages. [Begin july, 20G wl stable r al a eas _and nentine with a , e tFanskean Buxton Community ID has completed process for Balboa Peninsula. Pending outcomes, another area will be selected in 20101 2. Prepare specific recruitment materials utilizing primary data provided by consultants, as well as materials shared by the Chambers of Commerce and other organizations. [Begin September, 2007 and MaintaiFtBuxton Community ID prepared materials for Balboa Peninsula. Pending outcomes, another area will be selected in 2010.1 3. Economic Development staff (jointly with Chamber staff) should begin new business recruitment program utilizing market area information and other shared resources. Recruitment targets should include, but not be limited to, retail leads for possible fit in commercial villages as developed by marketing consultant; those identified as retailers `spun off by The Irvine Company from their commercial centers; and /or those wishing to expand (as coordinated with Objective 2.2), or as retailers not desiring to be within a "shopping center." [Begin 9stobeF;- 2007May 2009 for Balboa Peninsula & Maintain. Pending outcomes, another area will be selected in 2010.1 Strategic Plan For Fiscal & Economic Sustainability Page 7 4. Review/implement "vision" plans for Balboa Village, West Newport, the joint Cannery Village / Lido / McFadden area, and /or other areas as appropriate. [Beginning SepteMbeF, 2007 with Balboa Village in FY 2009/2010. Objective 12 — Mixed -Use Development: The City shall adopt flexible zoning regulations to implement General Plan mixed -use development policies in the commercial districts. Lead: Planning Department Support: Planning Commission, City Council Financial /Staff Resources: Included in Zoning Code re- write. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion July, 28A8 December 20091 Objective 1.3 — Parking Facilities: In cooperation with merchants and commercial property owners, the City shall establish a plan to facilitate the improvement of parking in specified areas. The City may use various mechanisms to facilitate this, e.g., public/private partnerships, tax exempt financing, parking management districts and /or in -lieu fees. Lead: Economic Development Staff Support: Administrative Services staff; Public Works Department staff; City Council Financial /Staff Resources: Staff time 400+ hours; largely dependent on establishment of in -lieu parking fee. Possible design and /or assessment district consulting engineers; Parking structure development could also rely on revenue bonds paid with fee revenues, though currently TBD. Action Steps: 1. Hire Parking Management consultant to review and update the parking standards and policies, including the potential implementation and possible impacts of market pricing; prepare a study of programs that encourage the development of shared use parking Strategic Plan For Fiscal & Economic Sustainability Page 8 facilities; and identify and prioritize areas where parking facilities are needed or might be needed in the near future. [Segin july 200- Completion September 20091 2. Seek City Council input on and approval for the recommendations from the parking consultant effort, including the establishment of an in -lieu fee. [Begin Januay , 2006 June 20091 3. Identify and implement high impact recommendations that can be quickly accomplished. Identify and implement high priority recommendations that need immediate initiation and dedicated resources. [Completion duly, 2805 December 20091 Objective 1.4 — Business Association Liaison: The City shall continue to support, and participate in as appropriate, efforts of Business Improvement Districts (BIDs) and other business and /or property owner groups to complete improvements and other voluntary business support activities within their areas. Lead: Economic Development Staff Support: City Council; BID Boards of Directors & property owner group boards; City staff from: City Manager's Office, Fiscal Services Division, City Attorney's office, Planning, Public Works, General Services, and Utilities departments; BID Systems, Inc, staff; Chamber(s) of Commerce staff; various contractors annually Financial /Staff Resources: Staff time — approx. 400 hours annually (1/10 total E.D. staff time); $140,000 General Fund line item annually for BID matching funds and contract admin support; various General Fund contributions annually to public improvement projects and event support. Action Steps 1. Continue E.D. staff liaison programming with the City's fear five Business Improvement Districts, including (but not limited to): fiscal administration; activities support; BID renewal activities; contract assistance and oversight; public improvement program development and implementation; marketing /advertising support; coordination between Strategic Plan For Fiscal & Economic Sustainability Page 9 97 business area improvement groups and the neighboring residential public. [Ongoing] 2. Continue E.D. staff liaison programming with the Mariners Mile Business Owners Association. [Ongoing] Objective 1.5 — Campus Tract: With its proximity to the John Wayne Airport and the potential availability of larger sites, the City shall focus its initial planning efforts on opportunities for the Campus Tract area. Lead: Planning Department Staff Support: City Manager's Office; Economic Development Staff; Zoning Consultant Financial /Staff Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion danuaq -2008 December 20091 Goal 2: The City shall support business efforts to optimize retail sales capture. Objective 2.1 — Commercial Zoning: The City shall adopt flexible zoning in support of General Plan policies for commercial development. Lead: Planning Department staff Support: Planning Commission; City Council R Financial /Staff Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion aanuaFy, 2008 December 20091 Objective 2.2 — Newport Center: The City shall facilitate efforts by Fashion Island and Newport Center to evolve their design and retail mix to capture maximum retail sales. Lead: Property owners Support: Planning Department staff and City Manager's Office staff. Financial/Staff Resources: Staff time to review proposals will be paid through development review fees. Action Steps: 1. Work with The Irvine Company, other property owners, the Planning Commission and City Council to ensure that the revised Planned Community for Fashion Island includes provisions to facilitate additional retail development and implements Design and Development policies in the General Plan Land Use Element. [May December 240' On- cin Objective 2.3 — Airport Area: The City shall encourage and facilitate the development of attractive retail and commercial uses that maximize retail sales capture in the Airport Area, commensurate with new General Plan land use designations and policies related to mixed use and residential development. Lead: Planning Department staff Support: Economic Development staff; City Manager's Office staff; Property owners. Strategic Plan For Fiscal & Economic Sustainability Page 71 P Financial /Staff Resources: Staff time — approx. 100 -200 hours annually. If a large project with a need for additional project management is needed, significant additional staff hours may be needed. Staff time to review proposals will be paid through development review fees. Action Steps: Economic Development staff will meet with property owners and developers as they come in with projects and provide appropriate guidance and assistance to achieve General Plan goals, focused on encouraging sales tax generation and capture in mixed use as well as commercial projects [Ongoing]. Obiective 2.4 — Auto Sales: development of auto sales maximizing sales tax capture. Lead: City Manager's Office The City shall encourage the facilities as a means of Support: Economic Development Staff; development review departmental staff; City Attorney's Office staff Financial /Staff Resources: TBD, as proposals are made to the City. Action Steps: 1. Staff of the City Manager's Office will continue to coordinate with various property owners, and representatives of the automotive sales & development industry for this effort, and will provide feedback to the EDC on progress made. [Ongoing] Objective 2.5 — Performance Indicators: The City shall improve its ability to track retail trends within Newport Beach by contracting for a more comprehensive sale tax audit service and by providing regular reports to the City Council and the EDC on sales tax performance by sub -area and business type. The City may also track vacancy rates of retail and commercial properties through Co -Star. Lead: Revenue Division staff Support: Economic Development staff; consultants Financial /Staff Resources: No new external cost may result if no additional consultant contracts are involved, Strategic Plan For Fiscal & Economic Sustainability Page 12 30 though a review of additional reporting may necessitate minor additional resources. Action Steps: 1. Economic Development staff should work with Revenue Manager and MRA to determine current effective value of existing reporting tools for retail performance trend analysis, including allocation audits, trends analysis, and tax increment verification. [July- August, 20079] 2. If existing tools are unsatisfactory, contract with new firm to establish a useable matrix for trend analysis and report generation by business type, commercial sub -area; provide additional analysis; and reports that can be provided to the EDC and Council. [Begin Ap4 October, 20089 and ongoing] Goal 3: The City shall facilitate the development, attraction and retention of a variety of businesses that strengthen the vitality of the local economy, particularly businesses that capitalize on market and demographic changes and opportunities that emerge in key economic centers. Objective 3.1 - Master Plan for the West Newport Mesa Area: work with property owners to develop a master plan for properties that are related to and support Hoag Hospital including medical, medical- supporting, commercial, residential and industrial uses. Lead: Planning Department staff Support: City Council; Economic Development staff Financial Resources: Consulting services will be required, with services estimated at $50,000- 75,000. Staff time is estimated at 550+ hours during a likely 2 -year lifespan for the project. Action Steps: 1. Form West Newport business owners association or business improvement district. [June 20111 4-2. Meet with property owners to update them on General plan provisions and Hoag plans, and ascertain interest in participating in joint planning Strategic Plan For Fiscal & Economic Sustainability Page 13 31 effort. [Beg;a ApFil, 20NFollowing formation of association) 2-. 3. If property owners are supportive, circulate RFP and retain consultant to prepare master plan. [Benin May, 2DNIBD] 3,4 Work with consultant and representative property owners to develop master plan, including opportunities for input from all property owners. [Qegi y, 20NI D 4.5. Present master plan to Planning Commission and City Council for review and approval. [ TBD[ Objective 3.2 — Flexible Zoning: The City shall implement Zoning Code reform to expand the definition of non- residential uses and to create flexibility in its zoning code to allow projects representing innovative market or development opportunities to proceed with fewer restrictions. Lead: Planning Department Staff Support: Planning Commission; City Council Financial /Staff Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2009 December 20091 Objective 3.3 — Business Assistance G'eaFiRghoase: The City shall coordinate with the Newport Beach Chamber of Commerce to rovidee^«^b,'���, �",—a outreach and business assistance oleaFirighouse and business eutreaGh pwgram to belp -- facilitate new business ventures and business expansions in Newport Beach. This Objective should be coordinated with efforts resulting from Objective 1.1. Strategic Plan For Fiscal & Economic Sustainability Page 14 3a Lead: Economic Development and Newport Beach Chamber of Commerce staff Support: Staff from Economic Development, Fiscal Services, City Manager's Office; leadership from other local businesses Financial /Staff Resources: Website: approximately $510,000 in first year, with updates as required. Subscription real estate services: approximately $ #10,000 annually. IRfarmat,9n Package: appr-eximately $2,500 G 000 ($4- 825,000 max. total) Action Steps: Update City's website to provide additional resources on -line; using coordinated business clearinghouse and focused economic development information tailored to Newport Beach (example: www.onlyinirvine.com). [Begin JMlyanuaFy 200 ,99 - Completion Jalyanuarv, 2004101 2. Contract for subscription -based commercial real estate information database services, in order to provide potential property buyers and/or tenants with up -to -date information about the smaller, individually - owned and marketed commercial properties. [Beginning july, 2007 and eQngoingj. Strategic Plan for Fiscal & Economic Sustainability Page 15 33 ee We- -e - M__ 11-041-0 ...... .. N.- IMMM =Z9.2 Strategic Plan for Fiscal & Economic Sustainability Page 15 33 Obiective 3.64 - Provide reports to the EDC and City Council on program targets and effectiveness on semi- annual basis. [Beginning 9stsbeF,- 288'_7May 20091 Include annual update as part of Economic Development Report to City Council. 1. EDC should provide recommendations, based on Objective 2.5, 3.4, and as part of annual Economic Development Report, to the City Council regarding new programming and/or resources (financial, staff, etc.) necessary to recruit, retain, and /or expand targeted retail sales tax - producing businesses. [Beginning danuaFy, 21.1080May 20091 2. Establish regular schedule (quarterly and /or semi- annually, as determined) of reporting to EDC in order to establish practice of retail trend analysis that will (in coordination with Objective 1.1) focus recruitment, expansion and retention efforts. [BegiRRing januaFy, 200890rigoing Objective 3.65 - Maintain and utilize a fiscal impact model to assist the City in making land use and development decisions that benefit the City. Lead: Economic Development staff Support: Revenue Division, Planning Department, and consultant support Strategic Plan For Fiscal & Economic Sustalnability Page 16 3q Financial Resources: Ongoing Action Steps: 3-1. Update and use model for analysis of projects likely to have significant fiscal impactaPnually. [ cageiRgAs needed l Objective 316 — Economic Development Policy: The City Council, with the assistance of its Economic Development Committee and staff, shall revisit and update its established Policy regarding Economic Development, to reflect the present fiscal and economic needs and values of the City. The updated policy shall take into account the provisions and priorities included in this document. Lead: City Council and Economic Development staff Support: Economic Development Committee Financial Resources: No new resources are required to implement this Objective. Action Steps: 1. EDC should appoint a subcommittee to draft revisions. [As neededl 2. EDC should make recommendations of revisions to the City Council. [As neededl 3. City Council should take action on recommendations. [As neededl Objective 3.67 — Economic Development Committee Structure: The EDC shall explore restructuring opportunities that better reflect the current makeup of the local economy, and that would provide the —expertise and flexibility to implement the goals and objectives of this plan. Restructuring should also pay particular attention to the effective and efficient utilization of volunteers serving on this Council- appointed committee and their time. Strategic Plan For Fiscal & Economic Sustainability Page 17 35 Lead: Economic Development Committee members and Economic Development staff Support: City Council Financial Resources: No new resources are required to implement this Objective. Action Steps: 1. EDC should appoint a subcommittee to draft revisions. [As neededl 2. EDC should make recommendations of revisions to the City Council. [As neededl 3. City Council should take action on recommendations. [As needed] Goal 4: The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor. Obiective 4.1 — Water- Dependent Marine Businesses: The City shall implement land use and related zoning regulations to encourage the preservation of water dependent marine business uses as re- development occurs over time. Lead: Planning Department staff Support: Consultant(s) Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January ,2008 December 20091 Obiective 4.2 — Non - Water- Dependent Marine. Businesses: The City shall implement land use and related zoning regulations by [January, 2010] to provide for the preservation of existing non -water dependent marine businesses in the West Newport Mesa area, as well as development of incentives to facilitate the relocation of such businesses to Strategic Plan For Fiscal & Economic Sustainability Page 18 3(� that area from economically unsustainable water front locations. Lead: Planning Department staff Support: Consultant(s) Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion danuaFy -2886 December 20091 Lead: Harbor Resources Division staff Support: Harbor Commission, Bay Issues Committee, City Council Financial Resources: Lobby Federal funds to be appropriated to the Army Corps of Engineers and /or local funding with reimbursement from the Corps at a later date. Action Steps: 1. Harbor Resources Staff, City Manager's Office, and City Council members will agree upon an Advocacy Strategy for LNB Dredging by July 2007. The Advocacy Strategy's focus shall be twofold — (1) seek $11 million in the Federal FY Strategic Plan For Fiscal & Economic Sustainability Page 19 3� 2009 Budget and (2) seek re- programming of funds from other delayed Corps projects to the LNB Project as soon as practicable. Advocacy involves direct communication with the Corps, our federal representatives, and other watershed partners. [Begin juiy, 2007 and nOngoing] 2. Harbor Resources Staff shall prepare the LNB project for construction (pending funding and concurrent with Action Step #1) by applying for and receiving all required permits, including by addressing toxicity issues in the LNB (pyrethroids, heavy metals) with consultants' contracts. [gegin 013tabeF, 2007 and Ongoing] Objective 4.4 — Regulatory Compliance: As part of its business assistance program, the City shall assist water - dependent businesses with information and City programs to aid businesses adjacent to the Harbor in complying with state and federal regulations pertaining to water quality, among others. Lead: Harbor Resources Division staff Support: Harbor Commission, Bay Issues Committee Financial Resources: Every five years, the City's Budget includes about $500,000 to complete the testing, monitoring, and applications required each time the City renews a US Army Corps of Engineers- issued Regional General Permit (RGP 54) that allows small maintenance dredging projects. These projects benefit pier owners and provide sand for beach replenishment. The City's Harbor Resources staff also serves as the first stop in processing many on -water Coastal Development Permits and Building Permits. Action Steps 1. Renew RGP -54 on a routine basis, including preparing for its renewal 2 -3 years in advance of its expiration. [Ongoing] 2. Budget for studies and testing required during each renewal. Apply all or a portion of the cost of RGP 54's tests and studies to Harbor fees, at a percentage of cost recovery directed by City Council. [Ongoing] Strategic Plan For Fiscal & Economic Sustainability Page 20 a p J O 3. Continue negotiations with the National Marine Fisheries seeking permission for the City to regulate Eelgrass. As part of that regulation the City is seeking permission to develop an Eelgrass mitigation bank that may be used by residents to meet their preservation obligation. , 20070n oin 4. Seek State and federal funding for the remediation of toxic hotspots in the LNB, including the Rhine Channel. [ Ongoing until funded 5. Ensure that all watershed partners, including upstream cities, appropriately fund water quality improvements in the Bay where upstream actions are directly or indirectly responsible for Bay impairments. [Ongoing] 6. Develop and continuously update an electronic and paper version of a Bay Users Handbook that instructs businesses and residents as to regulations, permit steps, and other helpful information. [Ongoing] Objective 4.5 — The City will invite proposals for the implementation of a privately owned and operated summer water transportation service, with funding supplemented by grants, private, contributions and public monies. Research should be conducted into the transferability of existing models in Los Angeles County and other areas. Lead: Economic Development staff Support: Harbor Resources Division staff, Harbor Commission Financial Resources: Public /Private partnership Action Steps: 1. Summer Water Taxi Committee will research successful small - harbor, summer -only private (or public /private) water transportation services that may be suitable models for implementation in Newport Beach. [ pF;i _ une 2009june — September 20091 2. A committee of interested individuals from the EDC, Harbor Commission, and the local maritime Strategic Plan For Fiscal & Economic Sustainability Page 21 39 and tourism industry will be formed to develop and champion —with staff assistance as required — strategies, find funding methods and sources, and review proposals for implementation. [Beginning June, 20099] Goal 5: The City will enhance the boating services of Newport Harbor. Objective 5.1 – The City will develop or convert at least 40 additional guest boat slips, and annually study the demand for additional guest slips. Lead: Harbor Resources Division staff / Public Works staff Support: Harbor Commission Financial Resources: CIP funding of the design and construction of the Marina Park Project Action Steps: 1. Design and construct a visitor - serving marina at Marina Park. [Completion, 2010] Objective 5.2 – Where feasible, the City will develop more capacity for tying up small boats at the Balboa Village area, Balboa Island area, Marinapark, the Rhine Channel area and the Mariner's Mile area. Lead: Harbor Resources staff / Public Works staff Support: Harbor Commission, Community volunteers Financial Resources: CIP budget request for design and construction Action Steps: 1. Design and construct a guest dock at Marina Park. [Completion, 2010] Strategic Plan For Fiscal & Economic Sustainabllity Page 22 -I� 2. Design and construct a guest dock at the Rhine Wharf. [ 20101 3. Design and construct public dock access improvements at the Fernando Street, 15th Street and 19 Street public docks. (Submit permit application June 2009: Scompletion, June; 2008LJ] 4. Regularly review existing Municipal Code so that public dock tie -up times on existing public docks maximize the ability of visitors and residents to use public docks for short-term stays (shopping, dining). [Ongoing] Objective 5.3 — The City will review its dinghy docking regulations annually to provide docking spaces for temporary docking which best suit the needs of the boating public. Lead: Harbor Resources Division staff Support: Orange County Sheriffs Harbor Patrol staff Financial Resources: City/County staff manpower 100 hours annually each. Action Steps: 1. Annually review Dinghy Docking Regulations. [Ongoing] Objective 5.4— The City will develop a policy that allows visiting boaters to leave their boats unattended at anchor for some period of time. Such policy will be subject to annual review. Lead: Harbor Resources Division staff /Orange County Sheriffs Harbor Patrol Support: None Financial Resources: City /County manpower 10 hours annually each Action Steps: 1. Design and construct a guest dock at Marina Park. [Completion, 2010] 2. Design and construct a guest dock at the Rhine Wharf. [ _ 20101 Strategic Plan For Fiscal & Economic Sustalnability Page 23 —1 I 3. Design and construct public dock access imrrovements at the Fernando Street, 15th Street and 19 h Street public docks. [Submit permit application June 2009; Scompletion June, 2011] 4. Regularly review existing Municipal Code so that public dock tie -up times on existing public docks maximize the ability of visitors and residents to use public docks for short -term stays (shopping, dining). [Ongoing] Goal 6: The City shall support the careful expansion of visitor - serving businesses and facilities. Objective 6.1 — Small Scale Lodging: The City shall identify an economically feasible program for encouraging the development of small scale lodging and bed and breakfast establishments in Newport Beach, including existing barriers to their establishment, and potential incentives to encourage such development consistent with the General Plan policies. Lead: Economic Development and Planning Department Staff Support: City Council; Zoning Consultant. Financial Resources: Staff time — approx. 200 -300 hours. $4,000 48,000 for economic feasibility consultant. Action Steps: 1. Research regulatory barriers to the development of small scale lodging and provide specific recommendations for zoning changes to the General Plan Implementation Committee for timely consideration. [Completion October 20091 2. Prepare an inventory of suitable areas and /or sites by type of lodging. [Ap O ovember, 20091 3. Have consultants research the financial feasibility for various types of small scale lodging with either existing or revised regulations. [June 208910] Objective 6.2 — Vacation Rentals: The City shall review and revise its existing policies governing vacation rentals to acknowledge and enhance the economic benefit to the City Strategic Plan For Fiscal & Economic Sustainability Page 24 q of such establishments and recommend a program to maintain and enhance the quality level of short-term lodging. Lead: Planning Department Staff Support: Revenue Division; Economic Development Financial Resources: Staff time will be required for meetings and research. Action Steps: 1. Research regulations and policies that impact vacation rentals and propose revisions if needed. [Completion September, 209720101 2. Help form organization to a) research existing models for vacation rental owner organizations and encourage the development of one in Newport Beach and b) assist the industry in developing a voluntary "Seal of Approval" program to encourage and promote high quality vacation rentals. [ApFit-dune Seotember - March, 200910 Objective 6.3 — Marketing and Promotion: The City shall continue its strong relationship with the Newport Beach Conference and Visitors Bureau to enhance the effectiveness of marketing and promotion undertaken by the City and the Bureau, in order to enhance the City's promotion to a worldwide audience. Lead: City Manager's Office Support: Staff from Economic Development, PIO office, Recreation & Senior Services, Planning, and Fiscal Services departments; CVB Board and staff and their membership; staff and /or volunteers from the events that the City and CVB jointly support. Financial Resources: Annual financial commitments from General Fund to the CVB, and the events and activities promoting the City; approximately 200+ hours annually of staff time. Action Steps: 1. City Manager's Office staff should maintain and enhance existing relationship with the CVB to market and promote the City of Newport Beach; CVB staff should provide annual reports to the EDC and City Strategic Plan For Fiscal & Economic Sustainability Page 25 u3 Council on the strength of the tourism economy. [Ongoing] 2. The EDC should recommend to the City Council that they continue to: A) provide financial support; and B) designate its staff liaison to the Newport Beach Film Festival on an annual basis. [Ongoing] 3. The City Council, through the City Manager and staff, should maintain and enhance existing relationships with annual events that generate economic value to the City; such as the Toshiba Golf Classic, the Taste of Newport event, the Newport Beach Film Festival. [Ongoing] Objective 6.4 -- Beach / Bay Activities Promotion: The City shall promote and encourage activities and events in and near the beaches and the bay that generate retail sales, e.g., boat shows, sports tournaments, etc., consistent with the Local Coastal Plan. Lead: Recreation & Sr. Svcs. Department Support: City Council; Harbor Commission; City Manager's Office; Recreation & Sr. Services staff, Harbor Resources Division staff; PIO office; Fire Department (Lifeguard Division) personnel; CVB staff; Chamber(s) of Commerce staff and volunteers; other organizations involved in these activities. Financial Resources: No additional resources needed at this time. Action Steps 1. The Recreation and Senior Services Department staff should prepare and maintain a master calendar of events. [Ongoing] Goal 7: The City will seek to minimize the economic impact of traffic congestion and will take affirmative steps to improve traffic flow. Objective 7.1 — Develop and implement a master plan to modernize traffic control systems and technology, to improve synchronization and improve traffic flow, throughout the City. Areas of concern include Pacific Coast Highway in Mariner's Mile, Newport Boulevard from 15th Street to the 55 Freeway in Costa Mesa (working cooperatively with that City), Strategic Plan For Fiscal & Economic Sustainability Page 26 qq Jamboree Road, and on Balboa Peninsula along Newport Boulevard from Main Street to Pacific Coast Highway, as well as other roadways and intersections. Lead: Public Works Department staff Support: City Council Transportation Subcommittee Financial Resources: As yet undetermined Action Steps: 3-1. Complete design of traffic signal system upgradesiGomnletien Desemher 2007-Phases 4 and 7 scheduled for 2009 -10; Phases 5 6 and 8 scheduled for 2010 -111. 42. Complete construction of upgrades to traffic signal controllers, and design and implement coordinated signal timing plan ^, °�—r-"ase4- JEhases 2 & 3 scheduled for December 2009{G9mp1e#Ein4uge 2098]. Obiective 7.2 — In conjunction with its approved capital plan and annual budgeting process, the City will implement key roadway and intersection improvements identified in the General Plan Update. Lead: Public Works Department staff Support: City Council Transportation subcommittee; General Plan implementation subcommittee Financial Resources: As yet undetermined Action Steps: 9 Detain Itant to update Fair Share Gee based an �rvvr-r GORE ^i rsi latinn system im evements in a Gener.,l Plan, [Beginning ApFil 20071- Strategic Plan For Fiscal & Economic Sustainability Page 27 u�j I✓ 2r1. City Council adoption of updated Fair Share Fee [August 20079j. 2. Design and construct improvements in General Plan. [In conjunction with development that causes need and provides funds for improvements] Objective 7.3 — The City will strongly advocate the construction of the 19th Street Bridge, and other critical regional traffic improvements. Lead: City Manager Support: City Council Borders Subcommittee; Public Works Department staff Financial Resources: As yet undetermined Action Steps: As opportunities arise, work with the Orange County Transportation Authority (OCTA) and the Cities of Costa Mesa and Huntington Beach to facilitate construction of regional improvements. [Ongoing] QLaj ve 7 Th e !"h. shall .. eate a plan to o 14 4' 4 Ft 4' suGh as h shuttles, to Oe FviGeTT.r— VYniGUS"OO1TIrf1C.TOial, retail a d GFeativ.• .... ........ ... .. ki with f d' supplemented by nraRtS private Financial Resoumes� As yet undeteFMiRed AGtion Steps� M 'i the potential fn a ant fuRdine and ser..ine6 feasible. [Ongoing] Obiective 7.34 — The City shall work cooperatively with adjacent cities and jurisdictions to complete key roadway and traffic synchronization projects that will help improve the flow of traffic within the boundaries of Newport Beach. Lead: City Manager Strategic Plan For Fiscal & Economic Sustainability Page 28 Support: City Council Borders Subcommittee; Public Works Department staff Financial Resources: $64,000 from settlement of IBC litigation. Action Steps: 1. Using funds from IBC litigation settlement, complete study of impacts and circulation system improvements needed as a result of development in IBC- Gary 2008On oin 2_As opportunities arise, work with the Orange County Transportation Authority (OCTA) and the Cities of Costa Mesa, Huntington Beach and Irvine to facilitate construction of regional improvements. [Ongoing] Objective 7.5 -- The City will negotiate with Caltrans to acquire ownership of Coast Highway through Newport Beach from Jamboree Road to the Santa Ana River. Lead: City Council, City Manager Public Works Director Financial Resources: Staff time Action Steps: 1. Meet with Caltrans staff and reach agreement on Coast Highway through Mariners' Mile and Newport Boulevard to Finley Street. (Ongoing] 2. Meet with Caltrans staff and reach agreement on Coast Highway from Arches bridge to Santa Ana River. fOngoingl Goal 8: The City will administer its development review and permitting processes in an efficient, solution oriented and customer friendly manner. - Strategic Plan For Fiscal & Economic Sustainability Page 29 u u� ,.., �_.. e_�_.. ��.,._. _<., . ,: -:. a y ,o-' " �irvi. }..t.: _.s, � Lead: Assistant City Manager Support: Staff involved in the development review process (Planning, Building, Public Works, Fire and Utilities departments). Financial Resources: No new resources needed at this time. Action Steps: 1. Assistant City Manager will coordinate with the staff of the Planning, Building, Public Works, Fire and Utilities departments to prioritize this Objective, and will provide feedback to the EDC on progress made. [Ongoing] Obiective 8.32 — The City will assure that staff receives regular training on maintaining a high quality of customer service and positive attitude. Lead: City Manager's Office Support: All development review staff; staff from any department that regularly contact the public Financial Resources: As yet RdeteFFFl0R4J 2, 000. Action Steps: 1. Assistant City Manager will coordinate with the staff of the Planning, Building, Public Works, Fire and Utilities departments to prioritize this Objective, and will provide feedback to the EDC on progress made. [Ongoing] Objective 8.34 — The City will write and approve Zoning Ordinance and other regulatory codes to make the process more streamlined. Lead: Planning Department Support: Planning Commission, City Council Financial Resources: No new resources needed at this time. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of Strategic Plan For Fiscal & Economic Sustainability Page 31 11 the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion daaaaFy, 2008 December 20091 Strategic Plan For Fiscal & Economic Sustainability Page 32 50 NOTE ON ADDITIONAL REFERENCES To support the Visioning Process and to provide background material for the GPAC to consider in its development of policies to be included in the General Plan update, the City contracted with the firm of Applied Development Economics, Inc. (ADE) for studies related to current economics and future fiscal impacts. ADE prepared a commercial market study published in December 2002 entitled "Newport Beach General Plan Update Retail Commercial Market Analysis, ° and a fiscal impact analysis entitled "Fiscal Impact Analysis and Model. Newport Beach General Plan Update," published in revised form in January 2004. Please refer to the detailed reports cited above, in addition to the final General Plan Update adopted by the City Council on July 25, 2006, and ratified by the voters in November, 2006, for further background. Strategic Plan For Fiscal & Economic Sustainabiliry Page 33 51 THIS PAGE LEFT BLANK INTENTIONALLY Ja Attachment 3 W ACTIONS AND ECONOMIC DEVELOPMENT STAFF TIME NEEDED OBJECTIVE 2009 July 2009 Au 2009 Se [ 2009 Oct 2009 Nov 2009 Dec 2010 Jan 2010 Feb 2010 Mar 2010 A f 2010 May 2010 June 1.1 Use recruitment material to recruit & pursue leads Improve Business Mix 12 12 12 12 12 12 12 12 12 12 12 12 Vision Plan for Balboa Village I Implement Updated Plan 20 60 60 60 20 20 30 30 20 10 1D 10 1.3 Complete and approve studies Implement recommendationslmonitor results PaNng 30 20 20 20 20 30 30 30 30 30 30 3D 1.4 Support BIDS and BOAs BIDS 20 20 20 20 20 20 20 20 20 20 20 20 2.2 Nordstrom at Fashion Island Newport Center 4 4 4 4 4 4 4 4 4 4 0 0 2.3 Airport Area R R R R R R R R R R R R 2.4 Auto Sales R R R R R R R R R R R R 2.5 Monitor Retail Perf. 10 5 20 10 10 5 5 5 5 5 5 5 3.1 Form BOA MP -West Newport Mesa 0 0 0 0 0 D 0 0 0 20 80 60 3.3 Website Business Assistance 20 20 20 0 0 0 0 0 0 0 0 Clearinghouse Employ Resources of CoStar, Buxton, etc. 5 5 5 5 5 5 5 5 5 5 5 5 Provide information on available sites 30 2D 10 5 5 5 5 5 5 5 5 5 3.4 Annual Reports to EDC & City Council Re orts to EDC & CC 0 0 0 0 0 0 20 20 30 40 0 0 3.5 Fiscal Impact Model R R R R R R R R R R R R 3.6 ED Policy R R R R R R R R R R R R 3.7 EDC Structure R R R R R R R R R R R R 4.5 Water Taxi Committee Water Transibortation 20 20 10 10 10 10 10 10 10 10 10 10 Inventory 6.1 of Sites Econ Feasibility Anal Regulatory Barriers Small -scale Lod(;!nQ 30 0 30 10 30 30 20 6.2 Organization & Certification Program Vacation Rentals 20 20 10 5 5 5 0 D 0 6.3 Marketing & Promotion 5 5 5 5 5 5 5 5 5 5 5 5 6.4 BeachlBay Activities R R R R R R R R R R R R 8.2 Communication with Aws.1 10 10 10 10 10 10 10 10 10 10 10 10 Sub -Total 166 201 196 201 141 166 191 161 191 186 202 192 Reserve 73.25 73.25 73.25 73.25 73.25 73.25 73.25 73,25 73.25 73.25 73.25 73.25 COBG 15 15 15 15 15 15 15 15 15 15 15 15 Admin 10 10 10 10 10 1D 10 10 10 10 10 10 Total Projected 264.25 299.25 294.25 299.25 239.25 264.25 289.25 259.25 289,25 284.25 300.25 290.25 Staff Hours Avail 293 293 293 293 293 293 293 293 293 293 293 293 SurplusfDartich 29 6 1 6 0 29 4 34 4 9 3 W