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HomeMy WebLinkAbout05/09/2006 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session May 9, 2006 — 4:00 p.m. ROLL CALL Present: Council Member Curry, Council Member Selich, Mayor Pro Tem. Rosansky, Mayor Webb, Council Member Ridgeway, Council Member Daigle, Council Member Nichols (Mayor Pro Tem Rosansky arrived at 4:07 p.m.; Council Member Nichols arrived at 4:09 p.m.) 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Curry requested that page 642 be amended to reflect that he voted on the amended substitute motion, not former Council Member Heffernan. Council Member Curry announced that he will be pulling Item 6 (Renewed Measure M Transportation Investment Plan) tonight. Council Member Daigle announced that she will be pulling Item 12 (Proposed City Council Policy B -17) tonight. Mayor Webb indicated that he will be pulling Item 14 (Council Consideration to Form a Committee to Study Appropriate Ways to Honor the Fallen from the 1st Marine Battalion let Marine Division of Camp Pendleton) in order to reduce the number of members. Council Member Ridgeway noted that American Legion Post 291 has requested that one of their members be appointed to the committee. City Manager Bludau stated that staff recommends continuing Item 10 (Big Canyon Creek Restoration Project - Phase II) due to concerns about the cost proposal. 2. BUDGET OVERVIEW. [100 -2006] Administrative Services Director Danner utilized a PowerPoint presentation to provide an overview of the City Charter budget provisions, the assumptions made during the budget preparation process, and to discuss the revenues and expenditures, reserves and fund balances, and City audits and the reporting that occurs throughout the year. He explained why the property tax projection is higher and the intergovernmental revenue projection is lower, how capital project carryovers account for the difference in revenues and expenditures, and what services are charged back to departments as internal charges. He noted that the contingency reserve is fully funded. He reviewed a slide of the City's general fund balance and reported on which capital projects have already been approved during the current fiscal year. He also displayed the Education Revenue Augmentation Fund (ERAF) losses since it began in 1992 -1993. He confirmed that the decrease in grants is mostly due to the completion of the Mariners Library. City Manager Bludau noted that the City anticipates capital improvement projects years in advance and recommended building the Volume 57 — Page 644 City of Newport Beach Study Session Minutes May 9, 2006 reserves prior to the projects being funded. He emphasized that the budget is balanced without relying on reserves. City Manager Bludau discussed the number of full -time positions the City currently has and reviewed the ten new positions that are being proposed. He highlighted new developments and pending issues that might affect the budget. In response to Council questions, City Manager Bludau reported that the Santa Ana Heights Fire Station will probably be paid through the appropriation reserve but the City will be reimbursed by the County. Administrative Services Director Danner explained what an appropriation/operating reserve is, the restrictions on the gas tax fund, and how Proposition lA restricts the State from tapping into city funds or special districts. Regarding PERS rates, Administrative Services Director Danner reported that the State adopted a new smoothing method to set the rates and discussed the unfunded liability, the fund status, and what percentage of payroll is used for PERS miscellaneous and safety plans. He noted that the City has a PERS reserve it never used. He confirmed that the State separates the City's fund by entity and by miscellaneous and safety plans. City Manager Bludau stated that, although the PERS rates are decreasing, the cost will still increase due to salary increases and additional personnel. Dolores Otting received information from staff about how much the proposed new positions will cost and how they will be paid for. Mayor Webb noted that the proposed positions will be considered during department budget reviews. City Manager Bludau added that the funding for sphere issues is under negotiation and will come before Council at some point. 3. CIP PRESENTATION. [100 - 20061 Public Works Director Badum reported that the Capital Improvement Program (CIP) comes from the departments and can be amended by Council through the checklist process. He utilized a PowerPoint presentation to discuss the CIP funding plan and how it is used as a project planning tool, the CIP process, the budget history, available resources and constraints, what the proposed 2006 -2007 CIP entails, the CIP structure by fund, a list of projects that aren't CIPs but need to be funded, the fund summary, new appropriations, major new projects and rebudgeted projects by fund type, and project descriptions. City Manager Bludau reported that the CIP is predicated on a $5 million contribution from the General Fund, when it has been $4 million in the past. In response to Council questions, Public Works Director Badum indicated that the City manages more CIP projects than other cities. He stated that they need to add personnel because they expect to receive over $3 million in grants for water quality projects. City Manager Bludau added that the City's studies will be the model for the State and that an engineering presence is needed to create a working plan and to be in the forefront of water quality improvements. He explained the benefits of receiving the grants first. Mayor Webb added that this will help establish what the rules will be and how they will be implemented. Council Member Curry noted that Measure M Funds will also assist with water quality because it deals with runoff generated by vehicles. Public Works Director Badum noted that a new principal civil engineer has not been hired in 15 years. He confirmed that they plan to construct the Santa Ana Heights Fire Station and then install the prefabricated training facility. He noted that, if the fire station is awarded tonight, the funds will not need to be rebudgeted. He indicated that the City would probably be contributing to the pool repair at Corona del Mar High School and that this can be added Volume 57 - Page 645 City of Newport Beach Study Session Minutes May 9, 2006 to the budget checklist. He reported that Utility Yard Building 3 will be remodeled to create usable space and to use it for the 800 MHz project. Public Works Director Badum explained that, for the Superior Avenue Median Improvements, they wanted an additional $500,000 but they were unsuccessful in getting a grant from OCTA and will probably address this in the next budget year. He reported that the $90,000 for the Seminuk Slough Dredging Project is to start the project but they hope to work with the Army Corps of Engineers. Regarding Mariners Park, he stated that future projects include taking down the old building, designing a restroom near the tot lot, rebuilding the ballfield, irrigation system, and turf, and reconfiguring the curbs along Dover. In response to questions about environmental grants, Assistant City Manager Kiff indicated that the City has been awarded all but the eelgrass study grant and that it can take ten months to implement the contract with the State. He reported that the City must match 15% of the grant amount. Public Works Director Badum clarified that some of that match can be staff time/labor. In response to questions regarding signal synchronization, Public Works Director Badum indicated that they are meeting with vendors and researching the various technologies. He reported that the City's existing signals are coordinated to an extent, but there are problems when interfacing with Caltrans and since the City also has a lot of pedestrian traffic. Mayor Webb explained that the City will never be fully synchronized because it does not have a square grid system with regularly spaced signals. Council Member Ridgeway stated that traffic is a big issue and believed that the signal synchronization budget should be substantial. Regarding transportation and circulation projects, Public Works Director Badum stated that, due to the General Plan Update, the City will need to look at the impact fee program closer. He noted that the Mesa Drive to Bristol portion of the Irvine Avenue Realignment Project has been given to the County and they expect construction to begin in 2007. Regarding Measure M Funds, Public Works Director Badum described the shortfall that may occur in the Jamboree Road Widening Project over SR -73. Regarding the Arterial Highways Rehabilitation Program (AHRP), he stated that the City is going to try to coordinate with Costa Mesa to improve Superior Avenue and reported that they already have the funding. Regarding the CIOSA projects, Public Works Director Badum reported that the funds are being rebudgeted because there were environmental issues, but they have been resolved. Council Member Nichols stated that he would like to see the right -of -ways on Coast Highway through Corona del Mar reassessed to possibly make Level of Service (LOS) D traffic conditions, instead of LOS E. Dolores Otting received an explanation from Public Works Director Badum about what types of projects will occur on Superior Avenue. Ms. Otting expressed concern about the increased traffic that the improvements may create. PUBLIC COMMENTS Dolores Otting took issue that the City Council Ad Hoc Sphere Issues Committee has lasted this long and stated that they should report something back soon. She believed that ad hoc committees are supposed to meet for a short duration of time. ADJOURNMENT - at 5:57 p.n-L to Closed Session. Volume 57 - Page 646 City of Newport Beach Study Session Minutes May 9, 2006 The agenda for the Study Session was posted on May 3, 2006, at 2:30 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 57 - Page 647