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HomeMy WebLinkAbout01/20/1997 - Adjourned Regular Meeting0 CITY OF NEWPORT BEACH City Council Minutes Adjourned Regular Meeting - Study Session January 20, 1997 - 4:00 p.m. ROLL CALL Present: O'Neil, Thomson, Edwards, Hedges, Glover, Noyes, Mayor Debay Absent None 1. UPDATE ON COMPREHENSIVE ZONING ORDINANCE REVISION City Manager Murphy said that the intention tonight is to present a very brief overview of the comprehensive rewrite of the city's Zoning Ordinance, and each of the Council has received a complete rewrite in a maroon binder and a short memorandum from City staff on what this complete zoning rewrite includes. He stated that before holding public hearings, it would be helpful to the Council to receive a briefing and deferred the overview of the issue to • Planning Director Patty Temple. Ms. Temple reported that this zoning code update was a project started by staff in mid -1993 that originally was a fill -in project during the preparation of the Balboa Village Rudat. The Rudat held in abeyance the staff work on the specific plan that was ultimately adopted for that area. As it was initially conceived, the zoning code was comprehensive reformattnng and was not intended to make substantive changes to the code. When new goals and objectives for the city's planning program were established as a result of Council goals and from the economic development committee, the purpose of the project was expanded to include substantive changes to the regulations to streamline permitting in the city. The updated Zoning Code scheduled for public hearing at the next City Council meeting on January 27, 1997 has been reviewed by subcommittees of the Planning Commission and Economic Development Committee, as well as full review by the EDC and a series of six public hearings by the Planning Commission. Selected sections of the code have also been reviewed by the city's Restaurant Association. The reformatted Zoning Code is intended for easier use through the use of major cities and complete cross - referencing. Terminology has been updated and simplified and made consistent throughout. Old zoning districts no longer in use are to be eliminated from the Code and new districts added. Of particular interest is the new PMA overlay district, or Parking Management Overlay District, which would allow for the creation of parking districts to serve the needs of an area, rather Volume 51 - Page 85 INDEX GPA 96 -1(D) Zoning (46/94) • City of Newport Beach City Council Minutes January 20, 1997 than determining parking on a site by site basis. New regulations to address contemporary needs are also proposed to be added such as home occupations, outdoor display and storage, and bed and breakfast inns and residential districts. Substantive changes to existing districts are also proposed to ease procedural requirements while providing the city with appropriate enforcement tools. These include non - conforming structures and uses, floor area ratios and eating and drinking establishments. The Code broadens the authority granted to staff in the approval of minor permits and permit amendments. Additionally, in order to fully accomplish the code amendment, over 1600 properties are proposed to be re -zoned in the City of Newport Beach. These properties are largely in the Bluffs area oil Newport Beach, but also includes selected sites around the city, most of which are zoned general plan/open space. Ms. Temple added that one of the things staff would like to accomplish here is to hopefully identify what particular issuelareas the Council has leading into the first public hearing on January 27, 1997. If, in reviewing the staff report prepared for this meeting, there are any items where the Council would place particular attention on or need additional information, staff would appreciate comments either at this meeting, or later on this week for staff to • provide as much information as needed to review this very complex project. Upon invitation by Mayor Debay, the following Council Members presented their remarks: Council Member Edwards requested information regarding zoning in the Eastbluff area. In response to Council Member Hedges' request regarding substantive changes to nonconforming structures, Ms. Temple advised that at the Planning Commission level none of the substantive changes engendered controversy with the exception of the non - conforming structures and uses section of the code. One thing that the Planning Commission adjusted from the original staff recommendation was to establish amortization procedures for nonconforming uses, but to not require actual removal of non- conforming structures. Additionally, the :Planning staff is looking at what causes a substantive change to the-operation (restaurants) and has set a time frame within which an existing use permit essentially sunsets, and will incorporate into this and subsequent changes new definitions that constitute a change, i. e, alcohol regulation. • With regard to area -wide catastrophic loss, Assistant City Manager Sharon Wood advised that there is not a change in who makes the determination, i. e., the Building Director. Council Member Hedges Volume 51 - Page 36 City of Newport Beach City Council Minutes January 20, 1997 • questioned the reasoning behind "determined by an independent licensed appraiser retained by the property owner," wherein, City Manager Murphy advised that this will be researched further. Council Member O'Neil focused on the new provision, stating that this a substantial change in the floor area ration which would allow for the transfer of areas within statistical areas. Ms. Temple stated that this is a new concept for the City of Newport Beach, but not a new concept in the County. She advised that one of the procedural problems experienced after adoption of the 1988 General Plan is that it made it quite difficult to re-use structures which were nonconforming as to floor area for certain types of uses, for instance, a building which had traditionally been used as retail only (gift shop or pharmacy) which could not convert to a higher FAR use or higher traffic - generating use, such as a restaurant. What is proposed as part of this code is the ability to address floor area on an area -wide basis, allowing the Planning Director some discretion for granting higher traffic generating land uses in nonconforming buildings. Council Member Glover requested more information regarding signage on home businessesthome occupations. Ms. Temple stated that this is a very important issue as there have been occasions in • the recent past where home businesses have complained about circumstances in the neighborhood. However, consideration will be given to home occupations and within certain parameters they would be allowed in residential districts which could create resultant land use conflicts. Mayor Debay voiced a request for input on off - street parking and updated loading standards, etc. She staked in meetings that she has attended there have been some complaints by various cities that there is not adequate loading zones for trucks to pull in, unload and leave. Council Member Noyes requested information on bed and breakfast parking, wherein Ms. Temple advised that the parking requirement is one per guest room plus one for the resident owner. It was determined that this will be addressed further at the next regular Council meeting. At this time, Mayor Debay opened the discussion to the public, and hearing no one wishing to address the issues, the public testimony was closed. Motion was made by Mayor Debay to receive the report of the Planning Director, and set for public hearing on January 27, and • February 10, 1997. The motion carried by the following roll call vote: Volume 51 - Page 37 City of Newport Beach City Council Minutes January 20, 1997 • Ayes: O'Neil, Thomson, Edwards, Hedges, Glover, Noyes, Mayor Debay Noes: None Absent: None Abstain: None 2. FINANCIAL FORECASTS FOR FISCAL YEAR 1996 -97 AND 1997 -98 City Manager Murphy explained that as has been the practice over the past several years, the budget process for fiscal year 1997 -98 will begin with preliminary review and Council's formal review commencing in May. Staff has prepared revenue/expenditure estimates for current fiscal year :1996 -97, and projected revenuelexpenditures for fiscal year 1997 -98. This is to give city staff some idea regarding fiscal management and provide some guidance to the department directors as they prepare their budgets. City Manager Murphy distributed copies of the forecast of all the funds for the coming year (Executive Summary of Potential Fee Changes - Cost of Services Study) and proceeded to note some issues that staff has highlighted. In terms of the 1996 -97 Revenues, staff looked through the current fiscal year and are estimating at fiscal year end that Revenues for 1996 -97 will be $64,498,541; • Revenues will be approximately $800,000 higher than in the adopted budget and are higher because the sales tax will be about $750,000 higher than the adopted budget, primarily due to the improved economy as well as several new sources, one of which is Bloomingdales. Revenues are up in the TOT Tax due to the economy, the hotels are fuller and the estimate is that those Revenues will be up higher, and the city is projecting a slight increase in the Business License Tax (about $100,000). In terms of Revenues, staff is estimating that there will not be any growth in the Property Tax Revenues, and a little bit of growth in Property Tax Transfers as more houses are being sold, however a pending appeal regarding the Unsecured Property Tax by the Cable TV Industry will reduce the Unsecured Roll by $200,000. When the city originally adopted the 1996 -97 Budget, it was estimated that $300,000 would be received this year from the KPMG Revenues. It is anticipated that the Council would adopt those increases and at the mid -year point the city would receive some portion this fiscal year. This figure has been reduced to $100,000 for the purposes of these projections. In response to Council inquiry, Administrative Services Director Dennis Danner advised that the city faces a loss of approximately $300,000 this year in unsecured tax payments from the Cable TV companies and anticipates on an ongoing basis $100,000 - $200,000 • loss annually because of the filing of this appeal. City Manager Murphy, in response to Council inquiry, advised that Volume 61- Page 38 1101) Budget (40) • City of Newport Beach City Council Minutes January 20, 1997 INDEX the City's projected KPMG impact, upon adoption of the increases, is approximately $1 million for a full year and is based on the recommendations of the Finance Committee. Further, he advised that with regard to loss of property tax revenue as a result of the current no growth, it is anticipated that in 1997 -98 this is projected to grow by 2% as a result of new properties coming on the rolls (Harbor Cove, Castaways, Baypointe and Block 800/Fashion Island, in addition to the new Fletcher Jones facility on Jamboree). City Manager Murphy advised that in terms of 1997 -98, during the last four or five years the economy has been very difficult to project. He noted that in terms of the General Fund, staff has looked at the Estimated Revenues, Transfers in from Other Funds to the General Fund, the Transfers Out including Transfers to Reserves, and the Budget Expenditures end Capital Improvement Program. When projecting the costs on the Expenditure side, staff looked at Salary and Benefits (the normal steps for a modest cost of living adjustment for Non-Safety Employees as well as the formula adjustment for the Safety Employees). The Expenditures also incorporate the MOU's which have already been entered into for 1997 and the effects of subsequent years; holding the Maintenance and Operation Accounts and Capital Improvements flat, which means looking at $92,000 in the red, keeping in mind that includes . putting $600,000 into the Reserve Account, representing about a .3% problem to deal with the Department ]Directors in the budget process. In terms of the Expenditure increase, when comparing 1996 -97 and 1997 -98, 80% is due to personnel issues and 20% represents an increase set aside for insurance reserves, specifically for the Workers Compensation Program as the internal charge to the departments is not sufficient at this point to collect enough to pay the expenses occurring. Looking in 1997 -98, it is not known if the Balboa Bay Club will exercise their option to reconstruct which would affect the full rent that they would pay to the city. The last item is the Stabilization Reserve and it is noted that the city assumed that our auditors actually wrote off the balance of the Orange County Investment Pool ($3.3 million) which is a 100% loss. If there is some recovery during 1997 -98, two-thirds of the recovery would go to the Water Fund and one -third to the General Fund, and the city is potentially looking at $1 million+ that could come back to the General Fund, provided there is 100% recovery through the litigation. Discussion ensued in response to Council inquiry regarding, Capital Improvements (this next year will be in the range of $10 - $16 million using funds through CIOSA, Fair Share Fees, Gas Tax and Measure M including $4.8 million in General Fund Reserves); use of Tidelands Revenues for infrastructure improvements to • areas close to the beaches and the harbor (1996 -97 Transfers In reflects $7.6 million and 1997 -98 reflects $6.3 million which includes approximately $4 million from Tideland Submerged Funds); and Volume 51 - Page 39 City of Newport Beach City Council Minutes January 20, 1997 INDEX • Stabilization Fund reflecting $5.7+ million estimated to go up to $6.2 million reserved for true emergencies. Nest year the city projects the Stabilization Fund at $6.7, working towards a goal of $15 million. Council Member Hedges stated his concerns regarding the establishment of significant Reserve Funds, such as the Internal Service Fund and the Equipment Replacement Fund, which were things taken up before in the Stabilization Reserve Fund. (1) He feels that it is incumbent upon the City Council to actually earmark the potential uses for a Stabilization Reserve, as there really isn't a feel for what the right level is unless we know the purposes for which it is to be used, as maybe 15% is too high for a Stabilization Reserve if all of the other reserves are appropriately funded and free up money for the Capital Improvement Program. He feels that the Finance Committee needs to take up the process of subjecting the General Fund Stabilization Reserves to the kind of rigorous exercise that has been contemplated with the Water and Waste Water Reserves. (2) If there is a recovery from the losses to the Orange County Investment Pool the city ought to give some thought as to what is to be the disposition of those moneys since they are not budgeted funds as it is not ]known if the city will be receiving any money. The city should start giving some thought as • to the appropriate use of that money, whether to return it to the taxpayers, initiate new recreational programs or simply return it to reserves. (8) It is perhaps time to giving some thought to re- entering the Orange County Investment Pool, as the Pool is performing quite well. (4) In the 1997 -98 Fund Balance he finds it curious that the city has not forecast any reduction in the Expenditures for Measure Q, after the consensus was that the Council heard for many months that the city was going to save $250,000 a year. City Manager Murphy stated that what staff intends to do is to give the Council a Refuse Division Budget that would reflect Measure Q money vs. no Measure Q money to show what the savings would be. At this point, the city would save approximately $250,000 less the new service to Harbico and new areas the city is to begin serving and factor in the landfill savings which the city may have if the city enters into that agreement nest month with Orange County on a long term landfill rate going from $27 to $22, and he feels that the city will be able to balance the budget as a result of those actions. Council Member Hedges remarked that the landfill savings doesn't have anything to do with Measure Q, and the $250,000 is supposed to be savings in perpetuity. He believes that it is inappropriate in the absence of any Council Policy to be budgeting expenditures, • but in stafPs 1997 -98 Expenditures Forecasts it is noted that it is expected to grow 2.4 %, 80% of which results from growing personnel costs, and this is a forecast made in the absence of any Volume 51- Page 40 City of Newport Beach City Council Minutes January 20, 1997 • City Council policy, which puts the Council in a position of having to budget for something that we have not decided to do, and he believes that the policy should come first. City Manager Murphy stated that the first step in the budget process begins with the Public Works Department Capital Improvement Program, and a packet of information has been presented to the City Council for review with a deadline of January 18, 1997 for input on any specific projects,. At the end of neat week a budget package will be submitted to the various Departments and they will have to have their budgets submitted back to the Administrative Services Department in February for review of the individual departments. During the latter part of March and early April. By May 1, 1997 per the City Charter the City Manager is required to deliver a budget as recommended by staff to the City Council. During May the Finance Committee reviews the budget and budget hearings are held in June. Mayor Debay opened the discussion to the public regarding the forecast that has been presented in the foregoing. Dolores Otting, 17 Hillsborough Drive, stated that her questions can be answered in depth later regarding the following, 1) she cited • the Paramedic Program from Hoag with a fund balance in 7/1/96 of $286,156 and a fund balance in 7/1/97 of $286,166. In reference to the Measure for Hoag that resulted in a $200,000 payment being made to the city, she didn't see that in the explanation. Also, she questioned why it was never stated anywhere that the money that's received from doing the Hoag Hospital bond issue needs to be put into the Paramedic Program, 2) she questioned where the additional $700,000 was to come from in order to buy the seven AQMD trash trucks that Council voted on last year for a grant of $500,000; she questioned why the IRWD Pumping Stations to the Big Canyon Country Club and Newport Beach Country Club could not be found anywhere; and questioned if there was a fourth well associated with the water project as she did not see any mention of this in the Water Project. City Manager Murphy stated that the revenues shown for Hoag represents the balance of the 1986 bond issue, and that Mrs. Otting is correct, as basically there would be a new $200,000 contribution to the city as a result of that bond issue. This has not been reflected in the foregoing and should be shown as a receipt for 1996 -97 as a special line item. In terms of the AQMD trash trucks, this is reflected in the Equipment Fund. the Big Canyon Country Club End User Agreements would come from the Water Fund. The Water Projects always have had four wells, two at each location, • included in the original project and not reflected in the General Fund. Volume 51- Page 41 INDEX • City of Newport Beach City Council Minutes January 20, 1997 Hearing no one else wishing to speak, Mayor public testimony at this time. the In response to Council Member Glover, City Manager Murphy stated that her request that cost savings be connoted in the budget so that the Council can see that those savings actually take place when the budget is being voted on, will be complied with. Motion was made by Mayor Debay to receive the report of the City Manager and Administrative Services Director and include the foregoing discussion as direction to city staff. The motion carried by the following roll call vote: Ayes: O'Neil, Thomson, Edwards, Hedges, Glover, Noyes, Mayor Debay Noes: None Absent: None Abstain: None 3. BALBOA PENINSULA PLANNING ADVISORY COMMITTEE (BPPAC) • City Manager Murphy said that the Balboa Peninsula Planning Advisory Committee (BPPAC), along with several working groups appointed by the City Council, has been working long and hard to submit a quality report for the City Council's consideration. He stated that Fritz Duda will begin the BPPAC report finishing with the Urban Design Consultants. Also, Assistant City Manager Sharon Wood will give some further steps to begin the review, action and implementation of the work program as actually approved by the City Council. Mr. Duda shared a brief history of the committee, stating that the committee was initiated in early 1996 resulting from some preliminary discussions with then Mayor Hedges about the negative transitions that had occurred over many decades on the Balboa Peninsula and how to reverse the trend and start a process for positive transition. As a result, Council appointed a community -based committee of the following: Don Dabney, Lido Isle resident, Anne Gifford, (not present tonight) Planning Commissioner; Mike Kranzley, Planning Commissioner, resident and local businessman; William Wren, :Peninsula resident; Tim Collins, Co- Chairman and resident of Peninsula Point; Jim Debrott, resident of Lido Isle; and Rush Hill, Architect and local businessman. Also, Tim Strader was introduced as an off - Peninsula At -Large Representative. Thanks was given to Carol Hoffman, who • was not present tonight, but was a past member having to retire from the committee as a result of conflicts with her position at The Irvine Company. Volume 51 - Page 42 INDEX BPPAC/Project 2000 (24/68) • City of Newport Beach City Council Minutes January 20, 1997 INDEX Mr. Duda said that nothing happened as a result of studies done by prior outside consultants (RUDAT, AIA Civic Center Area and Urban Land Institute), and because of the number of other studies done by outsiders and the lack of success on those studies, plus the fact that an Urban Land Institute study today costs about $200,000, $50,000 for a briefing book and another $125,000 to the Urban Land Institute. He referred to two booklets delivered to the city, one is the Urban Camp Balboa Peninsula Study which is basically a summary of recommendations in connection with the workshop process. The other booklet is Project 2000, a Planning Vision for Balboa Peninsula which is a vision of what needs to happen to create a positive transition on the Balboa Peninsula. Mr. Duda deferred to Jack Camp, who facilitated the workshop process in the four key areas of Lido Town Center (formerly referred to as Lido Village/Civic Center), Cannery Village, McFadden Square and Balboa Village (formerly referred to as Central Balboa). Jack Camp, Urban Design Camp, introduced Mike Adams from his group, who helped in facilitating this profiect. Mr. Camp proceeded to describe how the groups were formed from residents and businesses in order for him to study each district so as to quickly become very familiar with all of the issues for documentation • purposes. After agreement was reached on the issues, positive ways were documented to make a better place of the Peninsula by addressing these issues and the resultant cbusensus in their report with short term, mid term and long term possible solutions. He presented slides depicting existing conditions, actual anal photographs and renderings of superimposed new images, with new signage, trees and landscaping, new travel lanes to make true retail urban streets, adding more left turn capabilities and the addition of parking by combining parking lots for more efficiency and more parking, improving the pier edge and boadwalk and eliminating clutter on the boardwalk, improving the boat docking area. He added that these are conceptual ideas and that financing mechanisms were also discussed. The following representatives of the BPPA Committee addressed the Council expanding on Mr. Camp's slide. presentation: Bill Wren - BPPAC's dream for the Balboa Peninsula and for being a catalyst to transform the Peninsula and Balboa Boulevard and Balboa Village into a quality, aesthetically- pleasing, pedestrian - oriented commercial area, with suggestions toward financing from Community Development Block Grants Redevelopment Agencies, Parking Districts and Business Improvement Districts, with a major goal that the economic viability of quality year -round • businesses be established. Rush Hill - McFadden Square's focus group represented by active Volume 51 - Page 43 • City of Newport Beach City Council Minutes January 20, 1997 IQ11 members of the Newport Pier Association, additional property owners, residents and a very special individual from the Planning Commission with particular expertise in dealing with the road path that makes the Newport Pier area a very unique area in Newport. The major priority of elimination of the so called "mix - master," the melting of West Balboa Boulevard into Newport Boulevard allowing a single road path through the area giving an appropriate access to all of the major intersections. Improving parking with the implementation of a master parking plan throughout the Peninsula that is important to the well being of the area as well short term and long term parking. Utilizing the land area and the bay with an additional port of entry to McFadden Square. Creating a pro - active tenant mix program to help fill the vacant areas with the types of resident - friendly visitor services and appropriate commercial areas. A public transportation system that links other elements of the Peninsula utiRizing both ground based transportation and water based transportation. It was suggested that all of the recommendations can be most easily facilitated if the area were designated as a project area in a major redevelopment activity. Tim Collins - Cannery Village is generally a triangular shaped area bounded by 32 -d Street, LaFayette and Newport Boulevard. The • workshops dealt with three principal issues: (1) the uniqueness of the area (1930 -80 mixed use of industrial and commercial; 1980 -90 residential through zoning change); (2) circulation (both pedestrian and vehicular); and (3) compatibility of uses within Cannery Village, resulting in five recommendations, i.e., 1) to keep the eclectic mix and specialty uses and residential, 2) reserve boating services, 3) discourage non-compatible uses defined as heavy industry and to include long term dry boat storage, 4) control the number of bars and nightclubs, to seek more compatible restaurants and hospitality uses in their place, and 5) improve circulation giving priority to pedestrians over cars with engineering solutions embracing shared parking with the adjacent village of Lido Town Center accessed on 32nd Street which would be common to both villages. Lastly, both public and directional signage standards. Don Dabney - Lido Town Center is a complex multi -use triangular area north of 32nd Street east of Newport Boulevard and bounded by Newport Bay. With respect to commercial, residential and marine uses, the workshop came to some very definite conclusions for the need to create space for people to walk around the area. The need for parking space, identity, access to the Bay and the need to create pedestrian paths to adjoining areas. The Committee has recommended seven interrelated actions: 1) to consolidate the . Town Square Area by the abandonment of Via Oporto and Via Malaga and creating room for people, landscaping and additional parking, 2) reconfiguration and improvement of 32nd Street to Volume 51- Page 44 • City of Newport Beach City Council Minutes January 20, 1997 Ws provide a convenient route for the residents and trade people transiting the area; 3) establish Via Lido as a shopping street with diagonal parking bringing more people closer to the stores; 4) recommendation of a parking structure to serve both the Lido Town Center and the Cannery Village located along 32 -d Street and LaFayette; 5) relocate the Fire and Marine facilities to the new parking structure, which will create more space in the Town Center, 6) redevelop Lido Marina Village to improve land use, vistas and commercial enterprises, and maybe the inclusion of a hotel and bed and breakfast activities; and 7) provide a short term parking area for boaters coming to use these facilities. Mike Kranzley - Balboa Boulevard Beautification, a dream to be shared, such as aesthetic upgrades (including District themes and signage supported by private sign ordinance and a public signage program); pollution free shuttles by trolley and water; parking management plan and parking block between Lido Town Center, Cannery Village and improved access via 32nd Street; traffic improvement in core retail especially the mix- master reconstruction and consolidation of Balboa/Newport Boulevard; approval of the traffic circle (special study area); proposal of creation of a single City Harbor Commission with full responsibility for Harbor and Tidelands Policy Entitlement • Permitting and Management; promote the Harbor to visiting yachtsmen and open access from Bay by installing short term boat bay and dingy docks at strategic locations; removing and relocating moorings which impose a major traffic corridor; and discourage continued mooring control by owners of derelict vessels. Tim Collins - Financing the Vision: The cost of the status quo, (charts on pages 17 and 26 of the Project 2000) Income - Residential vs. Commercial Element (residential and commercial compared as to their land use elements and their major economic profile) consisting of 950 parcels contributes 66% of city revenue, while the commercial element 150 parcels generates 34% of city revenue. Property tax to the city from residential is $486,000, property tax based on commercial is $264,000. The priorities are traffic, both pedestrian and vehicular and the need to preserve the unique mix - use characteristics of the village. Goals for Cannery Village, include keeping the eclectic mix of the neighborhood to discourage bars and incompatible uses like heavy industry and boat storage and improving circulation with ample pedestrian access and signs. The preliminary stages of financing opportunities for redevelopment of the Peninsula falls into four other sub - categories: Reduce Costs - a major expense regarding enforcement of Balboa Peninsula from impact of visitors (solution would be to free up • dollars spent on crime enforcement on the Balboa Peninsula and instead use those moneys for crime prevention on a city -wide basis); Increased Revenues - sales tax, property tax increase, both Volume 61 - Page 45 City of Newport Beach City Council Minutes January 20, 1997 • privately and as a result of redevelopment agency formation would generate new tax income to the city, sales tax generative as a positive business vitality that is not visible without dramatic action on the Balboa Peninsula. On the Revenue side the favorable impact of the Business Improvement Districts (BID) on the Peninsula is a good example of public and private partnership and positive generation of fees that can be used to start to incorporate some of the recommendations. Judicious use of the city's bonding capacity. In parking revenue alone, the chance to implement many of the infrastructure changes outlined, as a summary of parking revenues for 1996 showed that the Balboa Peninsula generates $2.4 million of parking fees. This city generated revenue stream could support as much $30 million in infrastructure improvements on a conventionally -based municipal bond program compatible with the city's balance sheet and conservative financial practices. A sub- committee has been formed of BPPAC to move to the next phase to come up with implementation plans that can be submitted to the Council in the context of the 1997 -98 budget submissions. Tim Strader - Referred to photographs in the Project 2000 Report (pages 23, 27and28, 36 and 36), where the city needs to take control of the assets and adopt a plan to ensure the reversal of derelict conditions, offending signage, proper landscaping to replace the • "asphalt (parking) jungle." The conclusion; is that the "buck stops here" at the City Council level to permit staff to accomplish the recommendations of the committee so that some of the things can become a reality and move ahead. The need to agendize and give the highest priority to come up with a quality street network, adopt a parking management plan, and to step out and take control of the Bay. The need to make the city the finest place in the world to live and to visit. Fritz Duda - Overview. One of the things that surfaced throughout this project, is the fact that historically there really hasn't been any planning on the Peninsula, everything has been reactionary. Prior councils have had to micromanage and this has been the practice for decades, resulting in an incredible amount of regulation. Asking the Council to take a new look with a fresh start and what they would really like to see for the city. Nhe real key is can the current council come up with a policy, and the committee is very confident that the City Manager knows what needs to be done. Mayor Debay stated that today is the day to bring up some of the issues and set a date for future discussions and action. City Manager Murphy advised that there are several options left open to the City Council, to take area by area, or by major • recommendation (one at a time). Mayor Debay said her suggestion would be first of all to schedule a Volume 51 - Page 46 INDEX • u J City of Newport Beach City Council Minutes January 20, 1997 study session to set up the procedure and what steps the City Council wants to take, i.e., short term, medium term, long term goals, from a financial standpoint, and also comments from staff as to the impacts that some of the suggestions bring up, i.e., Coastal Commission review, changes on 32nd Street, (traffic light phasing) etc. She advised that copies of the reports have been made available to the branch libraries and they have been provided at no cost to the interested residents. Assistant City Manager/Planning Wood added that there is a cost to provide the colored version of the Project 2000 report. Council Member O'Neil, added his commendations to the Committee for the monumental work done which was accomplished with volunteer time utilizing some of the local residents' professionalism and talent, saving the city thousands and thousands of dollars. He stated that the Parking Management Plan is something that is going to be very worthwhile and will result in not only understanding how better to park the area, but make revenues received more advantageous to the city. He stated he would like to move ahead and have City Manager Murphy report back at the earliest possible opportunity on how the Council is to go about getting a request for proposals to fund a consultant, as he feels that this would take someone with particular expertise. Council Member Thomson added his commendation, stating that this is a good plan with good direction. Mayor Pro Tem Edwards suggested that a specific motion be made to come back at the earliest possible time with a proposal in conjunction with staff and BPPAC as to priority: Balboa Boulevard Beautification (budget, time, implementation); report on Parking Management Plan and Parking; Traffic Improvement and Core Retail (especially the mix- master effect) would be his high priority identifiable items, and to come back in scheduled serial meetings with follow up. City Manager Murphy advised that the top priorities would be tackled over the next five years and staff is trying to determine these in terms of dollars. By February 10 staff should be ready to come back to the Council with the steps. Fritz Duda, in response to Mayor Debay's question of undergrounding utilities, stated that this ;is covered in the report. Mr. Duda added that he would like to call everyone's attention to two individuals who have spent a lot of time on prior reports and who were very very helpful to the Committee, citing Bill Blurock and Bill Ficker, and thanked them for their assistance and history with their prominence in the architectural field. Mike lfranzley announced that on February 3, 1997 at the American Volume 51 - Page 47 INDEX City of Newport Beach City Council Minutes January 20, 1997 INDEX • Legion Hall at 7 :00 p.m., there will be a community outreach meeting and the public is invited. Council Member Glover said that she appreciated the work that the committee members have put into this project and how very thankful that they are to have citizens in the city with these skills, and that she is an advocate of using skills and talents of the citizens. Before she would make a decision, she would like some data that visiting boats do indeed bring money into an area and how do they. She was disappointed with the plan for the Lido Village area with respect to the water side, and felt that this needs more creative work. She feels that McFadden Square should be the number one priority; that there seems to never be enough parking on the Peninsula, but she would be willing to fund a Management Parking Policy; the reality is that the city will not recoup the money invested for years and years in her opinion, and sees this project as revitalization and not an economic development tool. Council Member Noyes stated that this has been a terrific job and advised and cautioned people who have objections or problems with this to make themselves very vocal now, so that possibly meetings can be set up to get the negatives out of the way. • Public testimony was invited by Mayor Debay to voice concerns to be addressed in the future session at the City Council level. Martha Durkee felt that the proposed recommendations are for the benefit of the visitors and people who have a financial interest in the particular commercial sections, and not the people who own property on Balboa Boulevard who have to deal with the limited parking in the summer, and the lost parking if this project is undertaken. She suggested that the people who own properties should help pay for the Balboa Village revitalization, rather than have the city pay for these improvements.; It seems to her that all of the streets in the city could be made "charming," and not just the particular sections dealt with in the report. Ken Kuhlman, 89th Street, West Newport Beach, reviewed the Project 2000 done by BPPAC, which he felt was an excellent project, and he liked everything he has seen tonight. He questioned whether he was part of the Peninsula, as he felt that the West Newport Beach area needs some of this revitalization, especially with regard to undergrounding utilities. Adele Mann thinks that this is an excellent: report, and she and her husband spent the weekend analyzing the three reports (Project 2000, the BPPAC and the staff reports), and she is interested in the • Traffic Management and proposed hotel and bed and breakfast, along with the zoning changes in conjunction with the city. Volume 51 - Page 48 • J • City of Newport Beach City Council Minutes January 20, 1997 Ray Handy, 44 Whitewater, Corona del Mar, who has a boat business at the Pavilion, feels that 75% of the report is just terrific. He expressed that it was hard to respond to the report on such short notice and researched the report on the weekend. He wanted to go on record that he would certainly like to be involved in any discussions. It was suggested that Mr. Handy stay in touch with Assistant City Manager/Planning Wood, for future meeting dates. Hearing no one else wishing to come forward, Mayor Debay closed the public testimony. Council Member Hedges stated that he was most impressed with the quality of the work put forth by this "blue ribbon" panel composed of residents mostly on the Peninsula, some on Lido Isle, all who will be affected by what the Council decides with respect to the report and recommendations. He referred to many of the areas on the Peninsula as "cheesy," whether it is signage, marginal businesses, streetscape, parking, etc., and he felt that much of this is the result of marginal commercial businesses in the city that are just barely surviving and that the report would revert a healthy business atmosphere throughout the Peninsula. He stated that with respect to economic development or revitalization, it is true that the Peninsula consumes a disproportionate share of the entire city budget, i. e., public safety, capital improvements, etc. In the past the studies done have been shelved because the situation has not progressed to the point for impetus to change, and he felt that the money spent in one section of the city will benefit another area. He likes where they are now as this study takes on the entire Peninsula as a geographical area. He feels that there will not be another effort of this magnitude in his lifetime and that there will not be any better quality of work, and that the staff report is one of the best that he has ever seen which identifies the problems and sets forth some specific solutions ranked by priority. Discussion ensued wherein, Council Member O'Neil made a motion to agendize this for an adjourned meeting to February 10 beginning at 4:00 p.m., and that this not be precedent- setting. Council Member Noyes addressed Mrs. Durkee's fears, stating that there will be many opportunities to interface with the team of highly professional people that are helping the city to implement a lot of the residents' concerns on the Peninsula and wanted to assure her that none of the recommendations will be approved without consideration for the very delicate rights of the residents. The motion was voted on and carried by the following roll call vote: Ayes: O'Neil, Thomson, Edwards, Hedges, Glover, Noyes, Mayor Debay Noes: None Volume 51 - Page 49 Q-1 9 • City of Newport Beach City Council Minutes January 20, 1997 Abstained: None A five minute recess was declared. 4. KPMG COST OF SERVICES STUDY City Manager Murphy advised that the recommended action is to introduce an ordinance at the neat City Council meeting on January 27, 1997, with second reading and adoption on February 10, 1997 in conjunction with the recommendations of the Finance Committee, and at that time there would be citizen input and public comments. City Manager Murphy commended the Administrative Services Director and his staff, particularly Dick Kurth, for the spread sheet depicting the 166 different fee areas showing KPMG figures in dollars and how these translate to a fee (current, staff recommended fees and Finance Committee recommended fee). The Finance Committee also has reflected their comments in the report and these have been highlighted in bold print. Council Member O'Neil stated that the Finance Committee • conducted four detailed meetings. He also gave recognition to Administrative Services Director Danner and his Assistant Dick Kurth, who he said put forth a tremendous amount of time in responding to the Committee's request for information, summarizing the reports in a manner which is very readable. In addition, he thanked the Finance Committee and, in particular, Council Member Hedges who was instrumental in the results of the study that identifies the many services that the City offers and how these 156 different services are paid for. As Chairman, he presented the following summary and proposed the following procedures for taking action on this comprehensive list of items to make the most economic use of the City Council's time, in discussing those issues that the Committee had or did not reach a unanimous consensus on, and added that the Finance Committee focused on establishing the same policy, for what the proper percentage of cost recovery from direct fees should be for each of the items in question, with the understanding that any remaining cost not recovered through these fees is an obligation to be supported by the General Tax Revenue. Council Member O'Neil stated that at the next City Council meeting he would like to introduce a motion which will establish the percentage of cost recovery at the level recommended by the Finance Committee for all items except those that are pulled • consistent with the normal routine for consent calendar items. If Council Members or the public wish to discuss other items not pulled, they will also have an opportunity to review these at the Volume 51- Page 50 INDEX KPMG Study (40) City of Newport Beach City Council Minutes January 20, 1997 IQ-1� • neat meeting. He referred to Column N of the Spread Sheet Summary prepared by staff, and he stated he will make a motion that the percentage specified in Column N be adopted as Council Policy with the following stated exceptions: Item 37 on the Spreadsheet should be 100% of Attorney Time at the fully loaded cost. Items 4646 need to be pulled for discussion and after discussion enacted by one motion. Items 60 -70 (Senior Services) need to be pulled for discussion and after discussion, enacted by one motion. Items 76 and 76 ( Plan Check and Construction Services) need to be pulled for discussion. Items 81-83 should be pulled for discussion. Items 88 and 89 should be 100 %. Item 91 should be removed from the list and taken up later. It contains provisions which go beyond fees for service and gets into • the area of finestpenalties. Although this is not specifically spelled out in your summary, the City Attorney has indicated that handling this item separately would be a better approach. Item 96 should be 100 %. Item 98 should be 100% of the contractor cost, and item 100 should be 100% of the hourly salary and benefits. Item 103 should be removed from the list and taken up later, as recommended by the City Attorney. Item 104 should be 100 %. Item 106 needs to be pulled for discussion. Items 107 , 108 and 109 should reflect that the charges be set at the maximum amount permitted by law (which is well below our cost). Items 110 -113 should be 100% if the hourly cost of service. Items 116 and 116 should be 100 %, understanding that that may not be possible as a practical matter, but it should still be the policy. • Item 117 should be the maximum amount permitted by law. Item 119 should be removed from the list and taken up later. It Volume 51 - Page 51 • City of Newport Beach City Council Minutes January 20, 1997 INDEX contains provisions which go beyond fees for service and gets into the area of fines/penalties. Although this is not specifically spelled out in the summary, the City Attorney has indicated handling this item separately would be a better approach. Item 127 should be 88 %. Item 128 should be 57 %. Item 130 should be 100% of the fully loaded hourly cost. Items 142 and 143 need to be pulled for discussion. Item 148 should he removed from the list and taken up later, as recommended by the City Attorney. Item 153 should be 100 %, but the Skilled Games permit should be eliminated. Item 155 should be removed from the list and taken up later, as recommended by the City Attorney. Council Member O'Neil added that unless someone has an issue • with the Finance Committee recommendations on the list, or any of the foregoing modifications, the City Council will be discussing only the following 38 items, with the rest being passed collectively: 45-55; 60-70; 75 -76; 81-83; 91; 96; 104 -1.05; 110 -113; 119; 142; 143. Council Member O'Neil advised that as a separate procedural matter, staff is preparing an ordinance for first reading at the City Council meeting of January 27, 1997, in addition to the resolution being prepared for action on February 10 1997, the purpose being two-fold: 1) to officially amend or otherwise supersede the fee setting proposals of the many existing City ordinances and resolutions which will hereafter be addressed by a single resolution; and 2) to establish the City Policy on percentage of cost recovery from fees in each case. In response to Council inquiry, City Manager Murphy advised that staff tried to provide helpful information to the full City Council on the Finance Committee recommendations, and the comments presented are open to discussion and input by both the Council and the public at the next Council meeting. Mayor Debay deferred to Assistant City Attorney Clauson for the effect of Proposition 218, wherein Ms. Clauson stated that with regard to the fees addressed in the study, she does not believe that they are subject to procedural requirements of Proposition 218. Volume 51 - Page 52 City of Newport Beach City Council Minutes January 20, 1997 Council Member Hedges said that he is satisfied that the staff report fairly reflects the specific recommendations of the Finance Committee as well their opinions, and that the Council has two very important responsibilities in the setting of fees: 1) that the services are provided as efficiently as possible and that the services are being charged the right amount, and 2) the need to establish what are basic services (defined) and to what extent should they be funded by the general taxpayer. For example, he feels that if video rental from the Library continues to be a service it should be not be classified as a basic service and ask that the general taxpayer subsidize this service. Mayor Debay declared that this issue was now open for public testimony. Dolores Otting questioned what the cost was to the taxpayers for the videos, citing that out of the 56,000 usages ($2 per rental) the city received $112,000, wherein City Manager Murphy stated that this is found in Column G of the spread sheet listing $94,000 which includes everything. She suggested that the computers and internet access be looked at as a user fee charged to the user's home phone. Also, she stated that the city needs to take a look at replacing worn equipment used in the city programs, i.e., sailing • instructions if they are to provide these services. Hearing no one else wishing to come forward, Mayor Debay closed the public testimony. Mayor Pro Tem Edwards moved to bring this issue back, as outlined by Council Member O'Neil. Mayor Debay restated that the hearings are for January 27 and February 10, 1997. The motion was voted on and carried by the following roll call vote: Ayes: O'Neil, Thomson, Edwards, Hedges, Glover, Noyes, Mayor Debay Noes: None Absent: None Abstained: None PUBLIC COMMENTS - None ADJOURNMENT -- Adjourned at 7:40 p.m. to Monday, January 27, 1997, with Closed Session beginning at 5:00 p.m. Volume 51- Page 53 City of Newport Beach City Council Minutes January 20, 1997 • •a,►rr,►,eeerrrarootro� L J • The agenda for the Adjourned Regular meeting was posted on January 16, 1997 at 5:20 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. t� Recording Secretary Mayo 2J/, -) ,, City Clerk Volume 61 - Page 54 .Q_