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HomeMy WebLinkAbout06/14/2005 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session June 14, 2005 - 3:35 p.m. ROLL CALL Present: Heffernan (arrived at 3:55 p.m.), Rosansky, Webb, Ridgeway, Daigle, Nichols (arrived at 4:10 p.m.), Mayor Bromberg Absent: None CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR - None. 2. BUDGET REVIEW PRESENTATIONS. General Services Department Acting General Services Director Pisani utilized a PowerPoint presentation and reported that their budget is status quo with no new programs or new positions. He explained that they were granted a new Tree Arborist position in March by the City Manager, but decided it was not necessary at this time so the position will be removed from the budget checklist. He stated that 46% of their budget is for salaries and benefits, with contracts and material costs making up a majority of their budget. He showed slides of the increases by division and their revenue estimates which will be increasing to $1.8 million. He reported that they are waiting for $200,000 from the Federal Emergency Management Agency (FEMA) for reimbursement of costs incurred during the winter storms. He believed that they will receive this in September. Acting General Services Director Pisani reported that, in the operations support division, they have additional expenditures due to the Corona del Mar Beach restroom rental through the summer, the purchase of four portable water pumps, and contract steam cleaning. He stated that, in the refuse division, the Newport Coast refuse collection will cost about $75,000 more than last year and will increase every year until build -out. He reported that, in the parks division, they're incurring expenses for the Castaways Park plant maintenance, upgrading the irrigation controller in Newport Coast, and incurring costs for the additional maintenance of new park areas. He added that the increase in the 6110 account (equipment maintenance) is due to the aging street sweepers and the increase in metal costs for parts used to repair the trash truck bodies. He explained that the total division budget for parts and salaries and benefits is $1,897,000 which covers the cost to repair the City's fleet, less the Police Department vehicles. Acting General Services Director Pisani reviewed the slide of significant expenditures by division and pointed out that each cost that is not a materials cost is an outsourced service. He reported that the City will spend about $346,000 for auto parts, $625,000 in fuel which is charged directly to the departments, over $60,000 for repairs performed by the private sector on City vehicles, and $132,000 to phase out the eight electric vehicles. In response to Council questions, Acting General Services Director Pisani reported that the City has contracts with various vendors for name brand auto parts. Regarding the wireless system, he stated that the Corporation Yard and Volume 57 - Page 273 160-0 (100 -2005) City of Newport Beach Study Session Minutes June 14, 2005 INDEX the utilities Department will soon be communicating with City Hall via a wireless network at the request of the MIS Division and will use Hoag Hospital to reflect the signal back to the Yard and utilities Department. Acting General Services Director Pisani reviewed the vehicle purchase slide and indicated that this is an average year with regard to the number of vehicle replacements, but the cost is a little lower than in the past due to there being no fire engine replacements. Acting General Services Director Pisani indicated that the General Services Department is facing several challenges the next fiscal year, including new leadership, assuming new parkland and having new parks come online, renewing the 24 refuse franchise contracts which expire on January 9, 2006, and continuing Air Quality Management District (AQMD) regulations. Regarding the refuse franchise contracts, they want to develop a franchise system that generates similar revenue but is easier to administer and audit. He reported that time is running out for the courts to help the City overturn the AQMD regulations, so the City will need to develop a plan in the next year to move to alternative fuel vehicles. City Manager Bludau reported that the City doesn't have any Compressed Natural Gas (CNG) or Liquified Natural Gas (LNG) trucks, and the mandate came out four years ago that all new heavy duty trucks need to be alternative fuel vehicles. He stated that the City has been putting new bodies on the refuse trucks to live with what it has because of a court case that might overturn that requirement and to give the heavy vehicle industry an opportunity to perfect the technology. He indicated that it appears that the court case is not going to be overturned, so the City will need to make some decisions in the next year or two as to which alternative fuel vehicle it will be going to. Acting General Services Director Pisani stated that CNG and LNG vehicles are currently the only choices for heavy equipment vehicles, but noted that there may be improved diesel vehicles in the future. Council Member Rosansky stated that one of the big issues in the City deals with outsourcing services and asked if the City's trash collection service is competitive with outside vendors. Acting General Services Director Pisani indicated that the City will be surprised by how competitive their trash service is. He reported that larger companies generally don't perform refuse collection in areas like Balboa Island and the Peninsula. He added that the City is fortunate to have a transfer station in the yard which allows the small trucks to dump their loads, compared to a commercial company dumping elsewhere and costing much more. He stated that the City has not been approached by outside vendors to provide this service because the refuse community understands what it would take to provide residential collection in those areas. City Manager Bludau reported that the last study was in the late 1980s or early 1990s in which it was determined that the City could do this service for less. He noted that the City's salaries and benefits are probably more than the refuse community would pay, but they also have a profit margin of 10% to 15 %. He stated that he is comfortable that a current study would show that the City is doing this service for less than any low bid provider. He confirmed that the Charter provides that the City must pick up trash at no fee to the residents as part of their property tax. Acting General Services Director Pisani explained that some sweeper companies have to change their trucks while refuse companies might have received a relief from the AQMD regulations through the courts. However, this does not apply to the public sector. City Manager Bludau stated that the City is not just relying on the previous study, but noted that they Volume 57 - Page 274 City of Newport Beach Study Session Minutes June 14, 2005 INDEX could do a new study if that's what Council desires. He pointed out that the residents are very happy with the City's refuse service, but stated that some people believe it can be done cheaper. Council Member Ridgeway believed that, since the City does have to move to alternative fuel vehicles, it should undertake a full comprehensive study at that time. City Manager Bludau reported that this won't be an easy study to do because the City would almost need to go out to bid in order to find out costs. Council Member Daigle believed that the cost shouldn't be the only determining factor in delivering a service, noting that former General Services Director Niederhaus received the most compliments with regard to refuse service. Recreation and Senior Services Department Recreation and Senior Services Director Knight utilized a PowerPoint presentation and reported that their proposed budget reflects a 12% increase over last year. She stated that about 54% of the budget is for salaries and benefits, 46% is for maintenance and operation (M &O), and contract services total about $1.1 million. She indicated that 10% of the total budget is for administration, 70% is for the recreation division, and 20% is for the senior services division, and displayed slides of what each division does. She highlighted the revenue sources and noted that some recreation programs and activities are required to be offset by revenues per City policy. She reported that, by design, the City doesn't charge for a majority of the programs at the senior center, so it doesn't bring in a lot of revenue. She explained that some outside instructors charge a fee for their contract classes, but the majority of classes are done through Coastline Community College at no fee or through volunteer instruction. She stated that the transportation fee reflects a suggested donation by the riders. She noted that there are off -hour facility rentals in the evening and over the weekend. She displayed a slide of the additional funding and service support to OASIS. Recreation and Senior Services Director Knight reported that there are new programs and increased costs, as well as increased revenues to offset the costs. She stated that the Friends of OASIS have offered to expand the transportation program from three drivers and vehicles to four. She reported that they are also requesting the addition of a full-time Playground Inspector position who is certified to identify the safety issues and is able to assist with playground equipment replacement to make sure the City is meeting the State and Federal standards. She stated that the City has about $1.1 million worth of playground equipment and, up to this point, one General Services employee was only able to look at each piece of playground equipment once a year. She indicated that they are mostly told about equipment problems by the public, but they prefer to be more proactive since there may be a liability if they aren't. Further, this will help the City keep up with the constant changes in the State and Federal playground equipment regulations. Recreation and Senior Services Director Knight also highlighted the program expansions which are mainly offset and covered through revenue. Recreation and Senior Services Director Knight reported that, this year, they will be focusing on the future park development of Sunset Ridge, two new community centers in Santa Ana Heights and Newport Coast, taking a lead role in the City's Centennial Celebration, creating a greater marketing effort for their programs and services, increasing emphasis on the maintenance of the facilities, playgrounds and fields, developing an outreach plan for OASIS geared towards the Baby Boomers, and beginning plans for the capital campaign for the Volume 57 - Page 275 City of Newport Beach Study Session Minutes June 14, 2005 INDEX remodel, rebuild, or replacement of the OASIS Senior Center. Public Works Department Public Works Director Badum utilized a PowerPoint presentation, reporting that the only changes from last year is that they are asking for an additional inspector and there are 117 capital improvement projects instead of 100. He stated that the budget is basically status quo, except for the additional inspector. He displayed what each division does and highlighted the budget amounts. He noted that the trend in construction projects has steadily increased and indicated that the City conducts about $10 million of inspections per inspector versus the surrounding cities which are averaging about $5.5 million per inspector. He explained that the inspectors aren't allowed to spend enough time on the job site and they have to rely on the contractor to take care of business. He stated that, adding an inspector will put the City at about $7.5 million per inspector. Public Works Director Badum reported that the significant expenditures include the on -call surveying services, geotechnical services, contract inspection services related to encroachment permits, and signal maintenance. He stated that most of the revenue for Public Works comes from parking meters, but added that they generate revenue through minor fees and encroachment permits. Utilities Department Utilities Director Davidson utilized a PowerPoint presentation, noting that the proposed budget reflects an increase of about 5.6% and the employee staffing is status quo with 53 full -time and 9.5 part -time employees. He indicated that the new cost of water is factored into the presentation. He displayed slides of the electrical division, oil and gas division, water division, and wastewater division budgets, and noted that the salaries and benefit increases are mostly due to PERS. He reported that the large expenditures for the electrical division include Southern California Edison (SCE) fees for streetlights, signal lights, and pedestrian crossing lights, and for materials to repair the streetlights; the oil and gas division expenditures include the Sampson Oil Company contract, oil well services, and electrical services; the water division expenditures include energy costs, water purchases, and City service charges; and the wastewater division expenditures include equipment maintenance and replacement, professional services, and City service charges. He noted that the electrical division does not collect revenues or fees; the oil and gas division will generate about $905,000; the water division will generate about $17 million without the water rate increase; and the wastewater division will generate about $3 million. He reported that, in the oil and gas division, there is a $115,000 increase which reflects a transfer from the CIP to the well maintenance program. He stated that, in the water division, he is considering reclassifying one employee in the water quality section and creating one position in water production. He reported that the major operation change includes the water purchase increase and pointed out that the last water rate increase was in 1996. He stated that the rate will increase from $2 per 100 cubic feet to $2.08 per 100 cubic feet, and the '/< -inch fixed meter fee will increase from $3.50 to $4.50 a month (prorated for larger meters). He reported that these increases will come before Council on June 28 and the ordinance will have its second reading on July 26. Regarding the wastewater division, he stated that the operational changes include food service inspections, the annual camera program, the sewer manhole lining program, and the tree root foaming program. Volume 57 - Page 276 City of Newport Beach Study Session Minutes June 14, 2005 Laura Curran asked if tiered pricing for the water increase was considered. She also asked if there was data that showed how the City's recovery on recreation programs compared to other cities. She noted that there is an increase of 5% to 8.9% in salaries built into a majority of the budget and asked if this is a contractual obligation or a standard raise in city budgets. 3. STAFF TOP PRIORITIES FOR FY 2005 -06. Utilizing a PowerPoint presentation, City Manager Bludau reported that he asked the department heads and the assistant city managers to provide a ranked list of seven top priorities, he ranked his own top ten priorities, and then the list is brought before Council. He noted that this is not Council's priorities, but staffs priorities. He emphasized that it is more important this year that Council really give a lot of attention to this list because it is ambitious and staff is recommending that the City commit to them. He stated that, in order for staff to accomplish this list of priorities, they will need to focus and be disciplined with other things that come up during the year. City Manager Bludau reported that staffs first priority deals with sphere issues. He stated that they want to reach agreement with the Board of Supervisors relative to John Wayne Airport (JWA), the maintenance and ownership of the Coyote Canyon Landfill, formation of the redevelopment agency (RDA) and responsibility for the Santa Ana Heights RDA, and relieve the County of Back Bay staffing and maintenance responsibilities. He noted that this appears as one priority but there is a lot of work involved afterward if they are successful. He stated that this priority has been assigned to himself and Assistant City Manager Kiff, with Consultant Bob Burnham also being involved. City Manager Bludau stated that the second priority is the Local Coastal Program (LCP). He reported that the City has received comments back from the Coastal Commission staff and stated that, if agreement can be reached with the Coastal Commission staff on key issues and subject to Council approval, then the City will want to complete the LCP certification process. He indicated that the City has been working on this for three years and the staff assigned to this priority are Planning Director Temple and Assistant City Manager Wood. City Manager Bludau indicated that the third priority is the General Plan Update. He stated that they want to put the General Plan in position for a vote in November 2006. He noted that they need to meet the fee timeframes and get through the Environmental Impact Report (EIR) process in order to deliver a good product that Council supports and wants to put before the public. He stated that Assistant City Manager Wood and Planning Director Temple are in charge of this priority. City Manager Bludau reported that Marina Park is the fourth priority. He indicated that this is a high priority because there's a lot of public interest. He stated that they want to establish a process to identify some of the options and alternatives that are available to Council. He believed that this may be one of the easier priorities to complete for staff because they aren't committing to what the final result will be, but are committed to going through the process so the options can be brought to Council to decide on what to do. He reported that Assistant City Manager Kiff will be responsible for this priority. Volume 57 - Page 277 INDEX (100 -2005) City of Newport Beach Study Session Minutes June 14, 2005 11013%.1 City Manager Bludau stated that the fifth priority is the City Hall complex and moving forward with the design development, including the development of the financing package and the temporary relocation plan for Council's final consideration in fall 2005. He reported that he, Public Works Director Badum, and Administrative Services Director Danner are responsible for this priority. City Manager Bludau indicated that the Centennial Celebration is the sixth priority. He reported that this is an intensive use of staff to support and facilitate the efforts of the Centennial Committee in planning and implementing the events. He stated that this priority involves Recreation and Senior Services Director Knight and the entire management team. City Manager Bludau reported that the seventh priority is to perform an essential building assessment on the City's public safety structures (Phase 1), conduct a needs assessment study for those structures based on the assessment that was conducted in Phase 1 (Phase 2), and develop a financing plan which supports replacements or renovations when needed to the Police, Fire, and Lifeguard facilities (Phase 3). He indicated that, in a couple of years, the same assessment will be conducted for the rest of the City's public facilities that aren't public safety structures. He stated that Public Works Director Badum, Administrative Services Director Danner, Fire Chief Riley, and Police Chief McDonell are responsible for this priority. City Manager Bludau stated that the Mariners Library is the eighth priority. He reported that they hope to open the library for public use in Summer 2006. He noted that this is a big effort for the library staff because, as the existing Mariners Library is operating, they have to prepare the new library for move in and public use. He stated that Library Services Director Katsouleas and Public Works Director Badum are responsible for this priority. City Manager Bludau indicated that the community centers make up the ninth priority. He stated that they want to complete the planning and begin constructing the Newport Coast and Santa Ana Heights community centers. He indicated that these projects will be coming before Council for final review. He reported that Assistant City Manager Kiff, Recreation and Senior Services Director Knight, and Public Works Director Badum are responsible for this priority. He noted that the last major building project the City constructed was the Central Library in 1991 or 1992. City Manager Bludau reported that the tenth priority is Sunset Ridge Park. He stated that, through its lease or purchase, the City wants to gain control of the park from the State for use as an active recreational park. He emphasized the City's need for more active parks and stated that they need to work with the legislators to secure this park for future planning. City Manager Bludau stated that the eleventh priority is the Santa Ana Heights Fire Station and Training Center. He noted that Fire Chief Riley and Public Works Director Badum are responsible for this priority. City Manager Bludau indicated that the twelfth priority is to develop a Citywide "Succession Planning and Leadership Training Program" to foster the development and growth of the internal talent. He reported that the staff members responsible for this priority include Fire Chief Riley, Building Director Elbettar, Recreation and Senior Services Director Knight, Police Chief Volume 57 - Page 278 City of Newport Beach Study Session Minutes June 14, 2005 McDonell, Human Resources Director Axley, and the new Human Resources Director, Barbara Ramsey. He pointed out that, within five years, at least half of the management team will be retiring. He stated that they feel that the City has a lot of talent within the organization, but nothing has been done to develop, train, or mentor that talent. He clarified that this doesn't mean that a department head vacancy will only be filled from within the organization; however, there are people who aspire or need to be groomed to aspire to top leadership positions in the community. He pointed out that there are people leaving the organization who have 20 to 35 years of knowledge and experience and stated that the City needs to make sure that the new generation of leadership gets as much benefit from those leaving as possible. Council Member Heffernan indicated that this is the most aggressive priority list that he has seen. Additionally, the City may be knocking down City Hall and relocating while still trying to operate. He asked if this list is too long. City Manager Bludau indicated that the soonest the City Hall project will begin is the end of next fiscal year. He noted that they haven't always accomplished all the priorities and that some of the priorities have been on the list for the last three or four years. He agreed that this is a very aggressive and ambitious list, but if these are really important to Council then focus and discipline need to be the keys to how staff operates for the next year. Council Member Rosansky applauded the list and stated that he cannot imagine pulling one of the priorities off the list. He noted that these are things the residents expect. Council Member Daigle asked that traffic issues be added to the list since it is extremely important to the community. She added that staff may want to also include issues relative to schools. City Manager Bludau indicated that those types of issues will be ongoing and clarified that it's not like staff will not be doing anything else. He agreed that some things have a higher priority than others and, with so many issues out there, the City needs to give attention to those issues that are most important to the community. Mayor Bromberg indicated that the residents are used to the high level of service the City provides. He stated that he is glad to see the twelfth priority because, when there is this type of turnover, people will need to fill in the slots. City Manager Bludau reported that people retiring with that much experience isn't only happening to Newport Beach. He noted that the private sector seems to be more attractive than the public sector right now and that the City is going to have to do a better job finding good people to take over key positions. Bernie Svalstad asked, if the City gets $760,000 to do new controllers and fiber - interconnects, whether that becomes a priority for this year. Public Works Director Badum reported that the City has been successful in getting Measure M money and those projects are already in the proposed CIP. City Manager Bludau noted that the facility projects are putting a huge burden on Public Works and they have never had to look at so many public projects. 4. CAPITAL IMPROVEMENT PROJECT BUDGET REVIEW. Public Works Director Badum utilized a PowerPoint presentation and displayed the CIP expenditure history. He reviewed the CIP process and reported that they look at the costs versus public benefit and look at projects that leverage the City's money through grants or donations. He indicated that, once there is a list of projects, Public Works determines the timeline for the projects and how the Volume 57 - Page 279 INDEX (100 -2005) City of Newport Beach Study Session Minutes June 14, 2005 INDEX projects will be manned. He stated that about $8.7 million worth of projects will be rebudgeted. He explained that most of the delayed projects are delayed only because of coordination issues with other projects or because they ran out of time. He added that they also had to pull staff off of projects due to the heavy rains. Public Works Director Badum reported that the CIP is a $3.6 million general fund allocation with the emphasis on facility rehabilitation and replacement. He assured everyone that they will also continue their emphasis on Master Plan infrastructure replacements and improvements. He explained how the CIP budget is broken down and noted that there are projects that haven't been included in the budget because they aren't sure about the schedule or funding source. Council Member Ridgeway stated that, for the Back Bay dredging project, the City is not expending any money at this time because the local match was funded years ago. Assistant City Manager Mff added that the County would manage this project. Public Works Director Badum reported that they transferred about $500,000 from Tide and Submerged Land Funds into various maintenance and operating (M &O) accounts because it was determined that this funding wasn't a capital project. He stated that they transferred $100,000 into the City Manager's budget for NPDES administration and $280,000 for Total Maximum Daily Load (TMDL) administration. Further, $120,000 was transferred into the Utilities Department budget for the oil field improvement program. He displayed a slide of the fund summary and concluded that the City has about the same size capital program as last year. Public Works Director Badum stated that the total for the general fund facilities rehabilitation and remodel is $388,000. He noted that this doesn't include City Hall because it will be added later on depending on Council action this fall. Further, the Newport Coast Community Center is included because the annexation agreement requires the City to pay for the fixtures, furniture, and equipment (FF &E) but they aren't sure what this cost or the timeframe will be. Regarding the Fire Department Training Facility, he stated that the $75,000 reflects the Fire Department's savings by not being in a joint agreement with other cities. He noted that the training tower project has also received a grant for $350,000 which will be added to the redevelopment money. City Manager Bludau noted that this money is not reimbursable. Public Works Director Badum stated that there is $765,000 in the drainage and streets fund to conduct the annual sidewalk, curb and gutter replacement, the storm drain improvement program, the Newport Shores alley replacement project, miscellaneous street, bikeway, and parking lot improvements, and the general fund match for the Newport Coast groundwater source identification project. Assistant City Manager Kiff explained that this is the grant to study where the additional runoff is coming from in Newport Coast. In response to Council Member Daigle's question, Assistant City Manager Kiff believed that the Santa Ana Heights riding arena may be a cooperative project that could be added to the CIP, depending on Public Works' workload. He noted that it is fully funded by redevelopment money ($250,000). He stated that; if Council wants to go forward with this project, it needs to be discussed with Volume 57 - Page 280 City of Newport Beach Study Session Minutes June 14, 2005 INDEX Public Works and then plugged into the CIP so they could manage their workload. Public Works Director Badum believed that, through the sphere issues, the City would ultimately be getting more control over the redevelopment agency. He indicated that they want to talk with the Santa Ana Heights residents, look at their master plan list of projects, possibly generate a five year plan of how that could be accomplished, and bring it before Council for review. Council Member Daigle noted that the riding arena can come online in the next three or four months. Assistant City Manager Kiff confirmed that the horse arena and passive park projects are as close to ready as they can be. He reported that, with the horse arena, an agreement with the County is needed to accept the funds and build it, and then staff would work with Risk Management and the City Attorney to develop a plan so a non - profit group assumes all management and liability responsibilities. City Manager Bludau suggested putting this project on the list. Public Works Director Badum reported that parks, neighborhood enhancements, and miscellaneous projects total about $1.9 million and displayed a slide listing the projects. He noted that the Buck Gully Erosion Control Project is a City match project, they will continue the planning process for Sunset Ridge Park, complete the construction plans for Newport Village Park, and conduct a Beach Sand Monitoring Study. In response to Council Member Nichols' questions, Public Works Director Badum stated that the total for the Buck Gully Erosion Control Project is $400,000 and they are thinking of installing either one or a series of smaller retention basins in the Gully to retain the dry flow. He indicated that most of the project deals with doing a study and a very small part is construction. He agreed that this project will probably lead to some other work and they are constantly looking for grant opportunities because the lower part of Buck Gully and Morning Canyon have issues. He clarified that the $500,000 grant is to be used to look at the entire Newport Coast watershed. Assistant City Manager Kiff reported that they were able to add grant money to a grant that is specific to Buck Gully in order to get through the planning and construction stages. He added that the City has received a $1 million watershed study grant that will look at all five drainage channels in Newport Coast. Public Works Director Badum stated that the $800,000 construction money for Buck Gully will be in next year's budget and believed that the study is already underway. Public Works Director Badum reported that, with the $478,000 capital purchase, repair and automation, and communication CIP budget, they're hoping to replace the carpet at the Central Library, the City's jail video and audio equipment, and install City entrance monument signs. He stated that, with the $500,000 CDBG CIP budget, they want to use $450,000 for the next phase of the Balboa Village Improvements. He stated that this project is on hold because of the undergrounding process. Further, $50,000 will be used for the Citywide curb access ramp construction. Public Works Director Badum reported that most of the $2 million Gas Tax money is matching money to grant programs. Be displayed the various projects and reported that Bay Avenue requires extensive storm drain work and the Marine Avenue Bridge Paving will probably be one of the more staff intensive projects. He confirmed that money has been carried over, as well as new money has been appropriated to the Port Street Traffic Calming Project. He stated that he hopes that this project will be done in a year. Public Works Director Badum reported that the tide and submerged land budget totals a little over $1 million and displayed a list of the projects. He Volume 57 - Page 281 City of Newport Beach Study Session Minutes June 14, 2005 INDEX stated that the ocean piers need extensive repairs. Public Works Director Badum displayed a slide of the contributions and grants which total $3.2 million. He reported that they spoke with the Corona del Mar Business Improvement District and residents in the area and it was determined that the problem at Coast Highway and Orchid is easily solved with a flashing crosswalk. However, the Iris location requires a traffic signal and they feel they need to work with the community to talk about whether to go forward with that type of project. Assistant City Manager Kiff explained that the Newport Island Channel and Turning Basin Project is trying to find a way to send the water back into the major part of the Bay rather than the Island. Public Works Director Badum displayed a slide of the transportation and circulation projects that total $827,000. He noted that the Corona del Mar School Crosswalk Project will be discussed at tonight's meeting. He displayed a slide of the Building Excise Tax projects that total $173,528. He stated that this funding is for improvements to the Balboa Peninsula Fire Station, upgrades to the Santa Barbara Fire Station, contributions to the Fire Training Facility, and computer replacements at the Central Library. Public Works Director Badum reported that Measure M funding totals $1.7 million. He indicated that the Turnback Funds are based on the City's size and miles of roadway. He noted that these funds are leveraged toward other projects like the Hospital Road Project, the Citywide Slurry Program, and the Placentia Avenue Reconstruction Project. He reported that the Competitive Funds total $500,000 and will be used towards signal system improvements. Public Works Director Badum reported that the Arterial Highway Rehabiltiation Program (AHRP) fund totals a little over $1 million and will be used towards the rehabilitation of Birch Street, Hospital Road, Jamboree Road, and Placentia Avenue. Public Works Director Badum stated that miscellaneous projects include using CIOSA funds for Dover Drive and Internal Services Funds for a crane for Building W at the Corporation Yard. Public Works Director Badum reported that there is a placeholder in the budget for assessment districts because there may be about $125,000 in design fees that the City may have to pay. He noted that design fees are typically advanced by the City and reimbursed upon formation of the district, so there is no net effect on the City's budget unless the district fails to be formed. Mayor Pro Tem Webb noted that a substantial amount of the City was built with utilities already underground and believed that 10% to 20% of the City still has utilities above ground. Public Works Director Badum reported that the Water Enterprise Fund is $2.4 million and noted that the projects are generated from the Water Master Plan. He stated that the Wastewater Enterprise Fund is $1.6 million and pointed out that the grease control device study and inspections will be paid for with these funds. Regarding other projects of note, he reported that tonight's agenda includes a staff report that requests an advancement of funds for the Mariners Library FF &E because they believe they can save money by getting their order in before the end of the year to beat the price increases. He stated that the fire station is currently $3.4 million but they know they're probably looking at a $6 million project. He noted that the Newport Coast Community Center is currently Volume 57 - Page 282 City of Newport Beach Study Session Minutes June 14, 2005 $6.5 million, but the FF &E still remains to be determined and budgeted. In response to Council Member Rosansky's questions, Public Works Director Badum stated that the traffic calming program established to date is located on page 93 and indicated that they have been budgeting $50,000 a year to conduct studies and minor improvements. He noted that the budget so far is $127,000 and that the traffic engineer indicated that the Newport Heights traffic calming study had about $1 million of potential improvements that could be built. He believed that there will eventually need to be additional funding but it will depend on what types of improvements Council wants and how they're going to pay for them. Mayor Pro Tern Webb stated that the traffic engineer told him that he was trying to put together a traffic calming meeting for late July. Council Member Rosansky emphasized that traffic is the thirteenth priority in the City and noted that the Newport Heights study has been ongoing for a year. PUBLIC COMMENTS - None. ADJOURNMENT - at 5:47 p.m. to Closed Session to discuss and conference with legal counsel regarding litigation, conference with real property negotiator, conference with labor negotiator, and discuss threat to public services or facilities. The agenda for the Study Session was posted on June 8, 2005, at 2:25 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. Recording Secretary M 7 yo City Clerk Volume 57 - Page 283 INDEX City of Newport Beach Study Session Minutes June 14, 2005 INDEX THIS PAGE LEFT BLANK INTENTIONALLY Volume 57- Page 284