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HomeMy WebLinkAbout06/13/2000 - Study Session0 CITY OF NEWPORT BEACH City Council Minutes Study Session June 13, 2000 -3:30 p.m. INDEX ROLL CALL Present: Adams, Debay, Ridgeway, Glover, Thomson, Mayor Noyes Absent: O'Neil (excused) CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Referring to Item #4, FY 2000 -2001 Combined Transportation Funding Program Application, Mayor Pro Tem Adams stated that he was contacted by Barry Eaton of the Eastbluff Homeowners Association asking why Jamboree Road would need to be widened to eight lanes at Bison Avenue. Mayor Pro Adams requested that an explanation be presented at the evening meeting. Public Works Director Webb stated that the widening was listed in the 1988 Circulation Element as a needed improvement. He added that the application will include a seven -year plan for the project, with a fund request for design in three years and right -of -way acquisition in four to five years, • with construction not starting for six or seven years. Mayor Pro Tem Adams wondered if the project needed to be done at all and asked where the right -of -way would come from. He stated that the homes on the west side of Jamboree Road are already at the property line. Public Works Director Webb stated that the right -of -way would come from the other side of the road, not the Eastbluff side. Mayor Pro Tem Adams stated his concern that the Bison Avenue widening would be done before additional lanes would be added at University Drive. Public Works Director Webb stated that University Drive would be done, but the process to apply for funds has already begun for Ford Road, and will be followed by Bison Avenue and University Drive. In response to Mayor Pro Tem Adams' question, Public Works Director Webb stated that each project would come before the City Council several times. Council Member Debay stated that she would be discussing the Balboa Bay Club situation with the City Attorney in regards to their submission of drawings and the current litigation. Mayor Pro Tem Adams confirmed with City Manager Bludau that the action before the City Council for Item #19, Proposed Cultural Arts Center, was to approve the recommendation of the Arts & Education Center Ad Hoc Committee. Mayor Pro Tem Adams referred to the staff report and the list • of approvals that would be necessary if the area to the north of the library were to be used for an Arts & Education Center. He asked for specific information about the parties involved and the procedure that would need to be followed for an amendment to the Circulation Improvement and Open Space Agreement (CIOSA). City Attorney Burnham stated that the parties Volume 53 - Page 387 City of Newport Beach Study Session Minutes June 13, 2000 • are The Irvine Company and the City of Newport Beach. He stated that an amendment may not be required, but The Irvine Company would have to consent to a different use of the area. Mayor Noyes referenced Item #14, Balboa Peninsula Gateway Park, Lido Parkway Park and Sound Wall Landscape Improvements - Completion and Acceptance. He asked if the signage at Gateway Park would be improved. City Manager Bludau confirmed with Public Works Director Webb that the City is waiting for a sign contractor to provide a proposal to revise the lettering. Public Works Director Webb added that the contractor was not paid for that bid item, but that the new signage will cost significantly more. Administrative Services Director Danner introduced Ken Al -Iman, a partner with Conrad and Associates, the audit partner being recommended in Item #17, Financial Audit and Single Audit Services for Fiscal Years 2000, 2001 and 2002. Mr. Al -Iman stated that he has been auditing cities for almost twenty years and that Conrad and Associates currently serves over thirty cities throughout Southern California. Mr. Al -Iman stated that he will be working for the City Council and that he's looking forward to serving Newport Beach and insuring that the quality of the audits conform to the City's standards. He added that the firm's audit approach is hallmarked by providing accounting advice and consultation. 2. DISCUSSION OF AIRPORT AREA PLANNING OPTIONS. • City Manager Bludau stated that since there are two large projects being proposed in the airport area, staff felt that it would be a good idea to have a philosophical discussion about what should be required of the projects and how the traffic circulation planning in the airport area should take place. He added that the development agreement for the Conexant project would be coming before the City Council after the Planning Commission makes their recommendation. Ed Selich, Chairman of the Planning Commission and the Economic Development Committee (EDC), stated that he and Commissioner Tucker were asked to participate in the negotiation process for the Conexant project development agreement. He stated that the Planning Commission has been concerned about the impacts of new development and entitlements in the airport area on the circulation system and the existing properties. He added that, over time, there has been an imbalance in the land use allocations in the airport area and the ability of the circulation system to accommodate additional development. Mr. Selich stated that the EDC has been studying the airport area over the last few years. He added that the City budget also includes an allocation to initiate a specific plan study and an overall study for the general plan, as well as the circulation plan for the airport area. He stated that the EDC and the property owners in the airport area support these studies. Mr. Selich stated that a key component of any significant development taking place in • the airport area is to upgrade the circulation system. He stated that many deficiencies have been identified and a plan needs to be developed, but until this is done, some type of mitigation fee must be received from any new projects to contribute towards future improvements. He stated that the Volume 53 - Page 388 INDEX Airport Area Planning Options (68) • City of Newport Beach Study Session Minutes June 13, 2000 11011a.1 mitigation fees need to be a part of the negotiated development agreements. Council Member Ridgeway stated that the negotiation process for the Conexant project development agreement has included himself, Mayor Pro Tern Adams, Mr. Selich and Mr. Tucker. He stated that he has long felt that a major plan in the airport area needed to be done and that regional traffic is being constricted. He added, however, that no money is being collected from new developments and that they continue to impact the City's intersections. He stated that having no planned program in place to mitigate the regional traffic problem in the airport area has been a problem in the negotiation process with Conexant. Council Member Ridgeway stated that the proposed Ad Hoc Committee, currently consisting of the members involved in the negotiation process, met with Public Works Director Webb and Transportation/Development Services Manager Edmonston and requested that a grade separation be prepared at Jamboree Road and MacArthur Boulevard. Council Member Ridgeway stated that the intersection is adequate for current needs, but that such a grade separation might be needed in the future and would cost approximately $15 to $20 million. He said other regional improvements in the area are also possibly needed, but nothing is in place and other new projects are being considered, in addition to the Conexant and Koll Center Newport development proposals. Council Member Ridgeway stated that, for this reason, the Committee is imposing a thoroughfare and roadway • improvement fee on Conexant. He stated that the fee is consistent with the fees required by the cities of Irvine and Lake Forest for traffic mitigation. Council Member Ridgeway stated that the Committee determined that they would continue to move forward with a development agreement even without a planned capital improvement program in place, because anything can be negotiated in the development agreement. He added that the negotiations have included fair share fees, traffic phasing ordinance fees, and $.45 per square foot for planning for the general plan and circulation element in the airport area. He stated, however, that traffic mitigation involves a policy decision and that is what is being asked of the City Council at the current meeting. He stated that the Committee is considering $10 per buildable square foot to be collectible in the future for major regional traffic mitigation in the airport area. Council Member Ridgeway stated that the Newport Place area has the biggest potential for development, and The Irvine Company also has plans for more development. He urged the City Council to allow the Committee to move forward with the negotiation process and the mitigation fee being considered. Mayor Noyes confirmed with Council Member Ridgeway that the fees may put Newport Beach slightly below the fees collected by the City of Irvine, but that would be without considering the fair share and traffic phasing ordinance fees. City Attorney Burnham confirmed that the newest version of the development agreement does not include fair share credit against the $10 fee being imposed. • Council Member Ridgeway stated that it appears that an agreement with Conexant has been reached. He added that it puts the pressure on the City to begin a general plan amendment and circulation element for north of Bristol Street. He stated that The Irvine Company will continue to build and Volume 53 - Page 389 • • • City of Newport Beach Study Session Minutes June 13, 2000 the money will be lost if the City does not act because a built -in forfeiture of the money is being included in the agreement. Mayor Pro Tem Adams stated that the City Council's consideration of the Conexant project should be separate from the long -range decisions for the airport area. He stated that Conexant is an established company in the City and they need more room. He stated that the City can, and should, accommodate their request. He added, however, that the issue of intensification of the airport area is a major planning issue, which needs to be addressed. He stated his hope that the Ad Hoc General Plan Update Committee will begin the process soon. Mayor Pro Tem Adams stated that he has no predetermined vision for the area, but he'd like to insure that any entitlements for Conexant, Koll Center Newport and any other new projects will not cause problems down the road. Mayor Pro Tem Adams stated that he has not looked at the traffic issues in detail but from general observation, it appears that there are some fundamental problems with the roadway network as it relates to the 73 Freeway. He stated that the freeway ramp system and access are far from ideal and far from adequate to handle a major business center. He suggested that some very creative and talented minds need to be involved in the long -range planning efforts and that consideration must be given for reasonable distribution of traffic and good freeway access. He stated that the system may be inherently flawed, but hopefully the process will generate some new ideas, some creative thinking and some good solid planning for the airport area. Council Member Ridgeway stated that, for the reasons outlined by Mayor Pro Tem Adams, the Committee is requesting that all applicants applying for an increase in square feet contribute $.45 per square foot for planning for the general plan and circulation element in the airport area. He agreed that talent is needed and the fees should allow the City to pay for consultants that can begin working on the process. He reminded the City Council that the Irvine Business Center (IBC) in the airport area has a zero population during the night and 100,000 employees during the day. Lastly, Council Member Ridgeway agreed that the Conexant project should be looked at separately, but that it does provide an opportunity to make progress on long - range improvements. Council Member Glover suggested that the formation of the proposed Committee be agendized for the next City Council meeting. She added that policies and direction for the Committee should also be decided on. She stated that all development agreements should be fair and have parity. She also wanted the rental car situation to be looked to see if the City could receive some type of economic benefit from the land being used for the parking of the rental cars. She feels that there are few revenue - generating businesses associated with the airport and the airport area, in general, is underutilized. Council Member Glover concluded by stating that policies should be developed that can be used in all development agreements so that applicants feel as though they've been treated fairly. Council Member Debay asked about the Transportation Corridor Agency (TCA) and its zone, or from where it could collect development fees. Volume 53 - Page 390 INDEX E • E City of Newport Beach Study Session Minutes June 13, 2000 Council Member Ridgeway responded by stating that the TCA area includes all of the airport area. Council Member Debay suggested that possibly the TCA could assist with some of the needed improvements to the 73 Freeway on -ramps and off - ramps. Council Member Ridgeway added that the TCA pays specifically for the County's share of the transportation corridors. He stated that any fee has to be specific, and that's the problem Newport Beach is facing since there is no specific plan in place for the airport area. He added, however, that any fee can be negotiated in a development agreement. He stated that fairness has to be considered throughout the negotiation process with Conexant. Evelyn Hart agreed with the direction that the City Council seemed to be going in regards to obtaining more information. She asked that Irvine Avenue also be remembered in the process, as well as any traffic that might be generated through the residential areas. Council Member Ridgeway agreed that improvements done north of Bristol Street have to be designed correctly to keep the traffic off the residential streets. He stated that the regional traffic needs to be prevented from migrating down into the residential community. Council Member Ridgeway cited the Santiago Avenue issue as an example. Robert Hawkins, Chairman of the Environmental Quality Affairs Citizens Advisory Committee (EQAC), stated that EQAC had not met yet regarding the airport area planning issues, but he felt that EQAC would support the efforts of the proposed Committee. He stated that he would report back to the City Council after EQAC had made a recommendation. Barry Eaton, Vice Chairman of EQAC, stated that although EQAC has not considered the specific development agreement issues, they have come close to voting on Conexant. Mr. Eaton read from EQAC minutes, where a unanimous vote that supported all projects in the area, including Conexant and Kell Center Newport, to share in the possible grade separation at Jamboree Road and MacArthur Boulevard and other mitigation measures in the airport area. Council Member Ridgeway concluded the discussion by asking the City Council to allow the proposed Committee to move forward on the concept, knowing the implication affects policy. Mayor Pro Tern Adams agreed and stated that the proposed Committee wanted to make sure they were moving on the right track before proceeding further. Council Member Thomson stated his appreciation for receiving the report and requested that the City Council be kept fully informed as the process moves forward. Mayor Pro Tern Adams stated that the negotiations are preliminary, and will Volume 53 - Page 391 INDEX • City of Newport Beach Study Session Minutes June 13, 2000 only provide a recommendation for the City Council to review when the development comes before them. He stated that Conexant, staff and the proposed Committee know that they are only narrowing in on something that might have support by the community and the City Council. City Manager Bludau stated that having input from City Council members on the initial development agreement is beneficial, but doesn't mean that the City Council is committed to supporting the project or the development agreement. He stated that he is comfortable with the process and knows that although the development agreement will have the support of some of the City Council members, the full City Council may require renegotiations. 3. FISCAL YEAR 2000 -2001 DEPARTMENTAL BUDGET REVIEW City Manager Bludau stated that at the current meeting, it is planned to continue the review of the Budget Detail and then begin the review of the Capital Improvement Program (CIP). He added that a public hearing is scheduled for the evening meeting and that the City Council is scheduled to adopt the budget at its meeting of June 27, 2000. He suggested that the City Council have their "wish list" completed before the end of the current meeting. General Services Director Niederhaus stated that the General Services Department is comprised of nine divisions, with the vehicle replacement • fund being an unmanned division. He added that two of the nine divisions are a part of the internal service fund. He stated that the overall budget for the department for the 2000 -2001 fiscal year will be 1.4% lower that the previous fiscal year. He stated that the general fund side will increase 3 %. General Services Director Niederhaus stated that there are numerous small changes for the department due to reorganization and they are all dedicated to improving efficiency, including some privatization of positions in the Parks Division. He stated that the proposed budget will eliminate the department's two part -time positions, by changing to contract restroom cleaning on the weekends. He stated that three full -time positions are also being eliminated, which will bring the department total to 118 full -time employees. General Services Director Niederhaus stated that two equipment mechanics, along with the maintenance and operations (M & O) funds to carry out their functions, will be transferred to the control of the Police Department. He stated that General Services will retain the replacement portion of the Police fleet, as is done for all of the departments. General Services Director Niederhaus stated that one building maintenance worker, along with a vehicle and appropriate M & O funds, will be transferred to the Community Services Department. General Services Director Niederhaus stated that three vacant groundworker positions will be privatized. He stated that these positions have been held vacant during the current fiscal year by the use of contract work. General Services Director Niederhaus stated that a recycling coordinator /refuse inspector position will be added to assist the City in reaching the State's requirement to recycle a minimum of 50% of its refuse. Volume 53 - Page 392 INDEX 2000 -2001 Departmental Budget Review (40) • • • City of Newport Beach Study Session Minutes June 13, 2000 He stated that the final change to report is that an equipment operator position will be added to bring the storm drain and tidal valve crew to full strength. General Services Director Niederhaus stated that the General Services budget includes eleven goals, which basically embrace more efficiency, more privatization, more contract work and dedication towards facility management. He added that some items from their supplemental budget were accepted. He stated that in the new fiscal year, the department will take over the maintenance of the 50 to 100 acres of open space coming to the City from the CIOSA agreement and the Arroyo Park. Council Member Glover confirmed with General Services Director Niederhaus that three positions will be eliminated and privatization will be used instead. Council Member Glover asked about the criteria applied when the City considers privatization. She detailed some problems in her neighborhood with non - English speaking workers and said she couldn't support privatization if the workers out in the neighborhoods cannot communicate with the citizens. She stated that this is not fair to the citizens and not worth the money saved. General Services Director Niederhaus stated that in the contracts for tree trimming, landscape maintenance and mowing, the City requires one person in each crew to be English speaking. He added that General Services is currently working with the City Attorney's office to make sure that all past contracts also include this feature. Council Member Thomson asked about the efficiency quotient of the one worker that's being transferred to Community Services. He specifically asked about the use of a workshop, tools and vehicle by one worker and the lack of efficiency of not having a worker as part of a pool, in case of absence. General Services Director Niederhaus stated that it's a priority of responsibilities. He stated that the Community Services Department would like to control the maintenance of their own buildings. He added that Community Services has a maintenance staff already and the new worker would enter that pool. General Services Director Niederhaus stated that, in general, it's better to centralize but in this case, it has been decided to test this approach. City Manager Bludau added that the maintenance of the recreation facilities has not been done adequately and he believes that a key component of having good maintenance is to affix the responsibility to the department who has the responsibility for the buildings. Council Member Thomson stated that he only wants to make sure that there is the versatility to use a pool of workers. City Manager Bludau stated that it is worth trying this approach and will not cost the City any additional money since it is a pure transfer of resources from one department to another. General Services Director Niederhaus stated that forty -five pieces of rolling stock will be replaced in the 2000 -2001 fiscal year at a cost of $1.2 million. He stated that this will include thirty -seven vehicles and one electric vehicle, and added that the addition will bring the City's total electric vehicle count to twenty -one. He stated that Newport Beach has the largest electric vehicle fleet in the State, and it has all been done with subvention and grant funds. General Services Director Niederhaus stated that the overall fleet will be increased by three vehicles which will include two additional trucks for Volume 53 - Page 393 INDEX City of Newport Beach Study Session Minutes June 13, 2000 • Police and General Services and one automobile for Utilities. General Services Director Niederhaus stated that the budget checklist items that have been put together since the supplemental items were submitted include $20,000 for pier and float repairs, $21,000 for litter pick -up on the beach this upcoming summer and $8,000 for monthly street sweeping of the three proposed annexation areas. General Services Director Niederhaus concluded by stating that the recycling coordinator /refuse inspector position is a revenue - neutral position because the recently approved increase in the recycling surcharge will fund the position and related costs. He stated that the position will also put increased emphasis on the refuse inspection problem in West Newport. He added that the budget does include twice -a -week refuse pick -up on the peninsula. Council Member Debay asked what types of things the recycling coordinator /refuse inspector would be doing in the alleys in West Newport. General Services Director Niederhaus stated that the inspector will be essential in taking care of the vector problems, making sure lids are on cans, starting the public relations program for the refuse can ordinance, and handling hazardous waste problems. General Services Director Niederhaus added that a public relations firm is being used and a flyer will be ready to mail soon regarding the new refuse can ordinance. He reminded everyone • that the ordinance is effective September 1, 2000. He said that the change will be crucial since he currently has three men injured in the refuse crew and the employees really struggle with the old cans. He added that a non- profit organization has offered to provide the cans and pick -up the old cans at a set fee. Council Member Thomson confirmed with General Services Director Niederhaus that the new cans are already increasing in numbers. Council Member Thomson asked if there was a way to get the word out to the citizens prior to the flyer going out, since many people do spring - cleaning and buy new cans this time of year. General Services Director Niederhaus stated that the flyer is almost done and it will be decided before the end of the week, the best way to mail it. He added that the refuse division has a good relationship with its customers. Council Member Glover stated her appreciation for the work done by General Services Director Niederhaus and his staff. General Services Director Niederhaus complimented his staff and stated that they are interested in doing a good job for the City. General Services Director Niederhaus reported on the condition of Gary Prather, a General Services employee, who was burned badly from a boating accident in the harbor. General Services Director Niederhaus stated that Mr. Prather is suffering from a substantial amount of burns on his face, hands and chest, and is looking at a long convalescent period. • Community Services Director Kienitz stated that her department consists of five divisions, four of which are public service divisions and one of which is an administrative division that provides support services for the other Volume 53 - Page 394 INDEX • City of Newport Beach Study Session Minutes June 13, 2000 INDEX divisions. Community Services Director Kienitz stated that the department budget is a status quo budget and is just under $6.7 million. She stated that this includes the new position being transferred from General Services, and a new full-time position at the library that was created from two and one- half part -time positions. She noted that the library and recreation divisions rely heavily on part -time staff, which can often be difficult to recruit and retain. Community Services Director Menitz stated that the total full-time staff equivalent (FTE) for the department is 89.40 in the proposed 2000 -2001 fiscal year budget, with 53 employees on the full -time staff and a total of 186 employees on the payroll. Community Services Director Kienitz asked that $7,000 be added to the budget checklist for the lights at Arroyo Park. Community Services Director Kienitz pointed out that the four public service divisions leverage public funds to a great extent. She stated that there is an equivalent of almost 25 full -time workers who work voluntarily, and that two of the vans used by the Oasis Senior Center are primarily funded by the Friends of the Oasis and another one is funded by Hoag Community Services Fund. She added that the library has two major support groups, which are the Friends of the Library and the Newport Beach Library Foundation. She concluded by stating that what the City appropriates is enhanced by the additional money and staffing. • Council Member Thomson asked why the City would fund the lights at Arroyo Park if it's a private park. Community Services Director Kienitz stated that the park is a public park. Council Member Glover mentioned the recent transfer of the Marine Environmental Division to the City Manager's office and asked if the library function is continuing to work well as a part of the Community Services Department. She added that it is possible that a new library may need to be built in the Newport Coast area if the annexation occurs. Community Services Director Kienitz stated that combining the four public service divisions has provided for a greater ability to have them all work together, but that it does entail a number of meetings for the department. She noted that the department supports the Arts Commission, the Library Board of Trustees and the Parks, Beaches & Recreation Commission. She stated that her official title is Community Services Director /City Librarian. City Manager Bludau stated that it makes her jointly responsible to the City Manager and the Library Board of Trustees. Council Member Glover requested that the City Manager look into the pros and cons of separating the library function from the Community Services Department. Council Member Ridgeway stated that he supported Council Member Glover's comments. • Public Works Director Webb stated that the Public Works Department is comprised of six divisions, which includes the oil and gas operations. He stated that the department currently has 77 full -time and 23 part -time employees. He stated that two new full-time employees are being proposed Volume 53 - Page 395 City of Newport Beach Study Session Minutes June 13, 2000 • for the 2000 -2001 fiscal year budget, and include a traffic engineering technician who will work on traffic signal coordination and an electrician to assist with new streetlights and in -house work. Public Works Director Webb stated that a long -term part -time engineering technician in the water division will also be upgraded to a full-time position. He stated that the total M & O for the department is $17 million, and is a 1% increase from the previous fiscal year. Public Works Director Webb stated that the six divisions include the administrative division and the engineering division. He stated that the engineering division is comprised of seven engineers and six inspectors and surveyors, and is the division primarily responsible for implementing the CIP. He added that contracts awarded in the current fiscal year totaled more than $35 million. He pointed out that the Arches Interchange project accounted for $15 million of the total. He complimented the division for their work. Public Works Director Webb went on to list the transportation and development division as another division in the department, and stated that they are responsible for subdivision processing, traffic signal operations and parking meters. He mentioned the new smart meters and stated that the City is attempting to educate the public on the parking restrictions. Public Works Director Webb stated that water and wastewater are • enterprise funds. He stated that these divisions, and those that work in the field with the public, have done a good job. Mayor Noyes asked about the repairs planned for the bay front on Balboa Island, including what was done in the current fiscal year. Public Works Director Webb stated that this is covered in the CIP, and that $100,000 is budgeted each year for bulkhead and sidewalk replacement and repair. He confirmed that General Services does some of the repairs. Mayor Noyes stated his concern that the City is falling behind on the maintenance of the boardwalk around Balboa Island. Council Member Debay confirmed with Public Works Director Webb that a new employee has already been hired to assist with the undergrounding projects. She further confirmed that the other new employee mentioned earlier will assist with synchronizing the traffic signals in the City, and she asked that this new employee be on the priority list for hiring. Administrative Services Director Danner stated that the two internal service funds are the insurance reserve fund and the equipment maintenance and replacement fund. He stated that the rates on the insurance fund were not changed and by the end of the next fiscal year, it should have a positive balance. He stated that there was a minor adjustment to the other fund. Council Member Ridgeway inquired about the new vehicles mentioned earlier by General Services Director Niederhaus. Administrative Services • Director Danner confirmed that these new vehicles were reserved in the equipment fund. He added that the fund is budgeted annually for the replacement of vehicles. City Manager Bludau stated that the fund should probably have $7 to $8 million in it and is slowly being built towards that Volume 53 - Page 396 Ih1U*A1 • City of Newport Beach Study Session Minutes June 13, 2000 INDEX goal. Administrative Services Director Danner stated that the fund is funded by the general fund, with some money coming from water and sewer. Council Member Ridgeway lastly confirmed that the sale of rolling stock was also figured into the fund. Public Works Director Webb began the discussion about the CIP by stating that there are 135 projects included for the 2000 -2001 fiscal year. He stated that approximately 24% of the total budget is for the CIP and totals approximately $30 million. Public Works Director Webb stated that a few large projects are underway and have been included in past years' budgets, such as the Arches Interchange and the Bonita Canyon Sports Park. He didn't think there would be such large projects in the CIP in the upcoming years. Public Works Director Webb stated that the Public Works Department began working on the 2000 -2001 CIP in November of 1999. He stated that the general fund requests received from the departments were reviewed on the basis of need and priority, and ended up being reduced by approximately 50 %. Public Works Director Webb stated that after he met with each of the department directors, he submitted a program to the City Manager, who then came up with the final recommendation to present to the City Council. Public Works Director Webb stated that the CIP includes new lexan walls for West Newport and the Balboa Village plan. He stated that oil spill is settlement money will be used for the rehabilitation of both City piers. He stated that two major water projects are also planned for the 2000 -2001 CIP, and include improving the water service to Corona del Mar and a water main replacement in Corona Highlands, which will include pavement rehabilitation for the tract. Public Works Director Webb additionally listed the pavement management and maintenance projects included in the CIP and totaling approximately $4.7 million. He stated that these include the work in Corona Highlands, work at the Newport Boulevard/Balboa Boulevard merger, and Balboa Boulevard from Adams Street to Medina Way. He additionally listed several of the reconstruction overlay projects, indicating how active the City's street maintenance program is. Additionally, he stated that a total of $8.9 million has been, and will be, spent on Balboa Boulevard alone, with $1.4 million being budgeted for 2000 -2001, $5.4 million projected for 2001 -2002 and $2 million for 2002 -2003. Public Works Director Webb added that the City annually applies for funds for street rehabilitation. He stated that the six projects most recently applied for are expected to bring in $1.6 million. Public Works Director Webb referred to the Addendum to the Preliminary CIP Document and noted the preliminary CIP re- budgets. He also noted the items that will be added as re- budgets because they were not awarded or completed in the current fiscal year. He briefly mentioned a few of the specific projects, as listed. • Public Works Director Webb noted the marine education facility, which was inadvertently omitted from the preliminary CIP and would be added into the final program. He additionally noted that the reforestation of Corona del Mar and a pier /float maintenance program were both projects submitted Volume 53 - Page 397 • City of Newport Beach Study Session Minutes June 13, 2000 INDEX after the preliminary CIP was created. Public Works Director Webb stated that a third project, not listed in the Addendum and considered a re- budget item, would be the Balboa Island pedestrian bridge. He stated that this project might include a redesign or a change in the aesthetic treatment. Council Member Glover stated that a design framework is being worked on for Mariners Mile, and she had hoped to present it to the City Council prior to consideration of the 2000 -2001 budget. She stated that the initial improvements would be on private property and paid for by the businesses in the area. She stated that a few people were present in the audience to discuss the public improvements portion of their design framework. Mark Murrell, member of the Mariners Mile Business Owners Committee, stated that the interest in the enhancement of Mariners Mile put together a number of business owners who have been working for over a year on a design framework for Mariners Mile. He stated that the local businesses are continuing to struggle to enhance the tenant base in the area and noted the loss of Windows on the Bay, Chili's and Auto Bistro. He stated that the area needs revitalization and that the local businesses plan to pay for some of the improvements, but that a letter was submitted to the City Manager to ask for the City's involvement, as well. Mr. Murrell stated that the business owners are requesting that a portion of the sales tax generated from the area over the next five years be used to pay for some of the improvements. He stated that this would be incorporated into the design framework and would • include improvements to the landscaping and the medians, and possibly undergrounding utilities and studying traffic issues. He concluded by stating that the Committee is hoping that a Business Improvement District (BID) will eventually be formed. City Manager Bludau noted that the letter requested 20% of the sales tax generated in the area, which has been calculated to total $260,000 per year. Council Member Glover commented on staffs ability to calculate the sales tax generated from the Mariners Mile area, which she previously had been told was unavailable. Council Member Ridgeway confirmed with Mr. Murrell that some of the improvements would be to Coast Highway and others would be to private property. Council Member Ridgeway stated his concern for the limitations to improvements on Coast Highway. Public Works Director Webb confirmed that any such improvements would need the approval of CalTrans, would have to be done under an encroachment permit and follow CalTrans standards, which can be restrictive. He added that the requests, if not unusual, should not be a problem. Mr. Murrell added that the improvements would also include such things as signage, much of which would be restrictions placed on signs on private property. Mr. Murrell concluded by stating that the area is vibrant and one of the older areas in Newport Beach, and it needs some attention. • Ted Bean, Co -Chair of the Mariners Mile Business Owners Committee, added that there are no streetlights on Mariners Mile and that landscaping is also a major concern. He stated that a new boat operation moved in at the corner of Dover Drive and Coast Highway, and that more marine - related Volume 53 - Page 398 • City of Newport Beach Study Session Minutes June 13, 2000 INDEX uses are also desired for the area. Mr. Bean stated that the design framework should be a good conduit to make the improvements come to fruition. Ned McCune stated that a report will be available in approximately six weeks. He also confirmed that a few dormant parcels will soon be developed. He stated that prior developments did not consider the pedestrians and that improvements, particularly for night activity, are needed. He asked that the City Council support the area, as they have done for other areas in the City. Council Member Ridgeway asked if the $700,000 for Balboa Boulevard from Adams Street to Medina Way was for design. Public Works Director Webb stated that the money was for reconstruction. Council Member Ridgeway further confirmed that it was for drainage and paving. Public Works Director Webb stated that the project should be ready to go out for bid in the Fall of 2000. Council Member Thomson requested that $500,000 be added to the budget checklist to add trees and landscaping to MacArthur Boulevard, north of San Joaquin Hills Road. He stated that this will pick up where a private developer left off and complete the area. Public Works Director Webb stated that a substantial part of the project could be completed for $250,000. In response to Council Member Ridgeway, Public Works Director Webb • stated that more than highway landscaping is involved. He stated that Council Member Thomson is referring to the entire area of a strip park and a slope that faces MacArthur Boulevard. Council Member Ridgeway further confirmed that MacArthur Boulevard is a City street and the funding should come from the general fund or the parks fund. Public Works Director Webb stated that the City has been unsuccessful in receiving grant funds for the project. Council Member Ridgeway stated his support for the project. Council Member Glover referred to the earlier request of the Mariners Mile business owners for 20% of their area's sales tax and noted that the business owners themselves plan to be responsible for a number of the improvements in the area. She stated that Mariners Mile has never had streetlights or landscaping, and she requested that 10% of the area's sales tax be budgeted over the next five years for improvements to Mariners Mile. Council Member Ridgeway stated that the residents on the Bluffs need to be considered and that they may not want streetlights on Mariners Mile. Council Member Glover stated that residents of Cliff Drive have worked with the Mariners Mile business owners and plan to continue to do so. Mayor Noyes requested that some of the money for the Balboa Island boardwalk repairs planned for future fiscal years be moved to the 2000 -2001 fiscal year. He stated his concern for the high public use and the potential for liability. City Manager Bludau confirmed with Public Works Director • Webb that if all repairs were completed, it would cost approximately $500,000. Mayor Noyes stated his concern for the substandard repairs that have been done, and he requested that the budgeted $150,000 be increased by another $150,000. Volume 53 - Page 399 �7 City of Newport Beach Study Session Minutes June 13, 2000 Council Member Ridgeway asked about the new pedestrian bridge planned for Balboa Island and if the need was there for the expenditure. He suggested that this money could possibly be used for the improvements being requested by Mayor Noyes. Council Member Thomson suggested that possibly a portion of the Balboa Island sales tax could go towards improvements in the area, such as the concept being requested by Council Member Glover for Mariners Mile. City Manager Bludau asked that overtime coverage for paramedic training be added to the checklist in the amount of $117,144. He stated that other options are being looked at, but he'd like it to be looked at by the City Council. Council Member Ridgeway asked why the City's personnel had to be trained and why outside hiring couldn't be done. City Manager Bludau stated that this could be one of the options to look at. Council Member Ridgeway understands the Fire & Marine Department's desire to hire within, but he feels it would probably be more efficient to go outside. Council Member Ridgeway confirmed that overtime is currently being paid, and suggested that a part -time emergency medical technician (EMT) be considered. PUBLIC COMMENTS - None. • ADJOURNMENT - 5:40 p.m. The agenda for the Study Session was posted on June 7, 2000, at 3:40 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. l I1/ • Recording Mayor Volume 53 - Page 400 INDEX