HomeMy WebLinkAbout03/13/2007 - Regular MeetingCITY OF NEWPORT BEACH
City Council Minutes
Regular Meeting
March 13, 2007 — 7:00 p.m.
I. STUDY SES_ SIGN - 4:00 p.m.
II. CLOSED SESSION - 5:20 p.m.
III. RECESS
IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING_
V. ROLL CALL
Present: Council Member Henn, Council Member Curry, Mayor Pro Tern Selich, Mayor Rosansky,
Council Member Webb, Council Member Daigle, Council Member Gardner
VI. CLOSED SESSION REPORT - None
VII. PLEDGE OF ALLEGIANCE - Mayor Pro Tern Selich
VIII. INVOCATION - Rabbi Marc Rubenstein, Temple Isaiah
IX. PRESENTATIONS
Proclamation to Newport Beach Chamber of Commerce on a Century of Service to
Newport Beach - Joe DuBois, Chairman of the Board, and Jeff Parker, Vice President, accepted on
behalf of the Chamber of Commerce. March 12, 2007 was proclaimed as Newport Beach Chamber of
Commerce Century of Service to Our Community Day.
X. NOTICE TO THE PUBLIC
XI. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL . MEMBERS
WOULD_LIKE PLACED_._ON A AGENDA FOR DISCUSSION..ACTION OR
REPORT (NON - DISCUSSION ITEM)
Council Member Henn stated that he was fortunate enough to have participated in two tours on the
peninsula. The first tour was to the Junior Lifeguard temporary facility. He recognized Renee
Boyer as the Dorothy Palen award recipient. He indicated seasonal lifeguards are needed and
encouraged referrals to the program. He also toured the Balboa Theater and reviewed the theater
plan, which is a very important part in regeneration of the Balboa Village area. He thanked Mayor
Rosansky for being the driver of the March 2nd conference on group homes.
Council Member Curry advised that Assembly Bill 1355, introduced on February 23rd by
Assemblymember Houston, requires that harbor patrol services be perenially provided by the
Sheriffs Department. Staff is currently in discussions with the County about potentially taking
over those duties and would like the flexibility of providing these services with the City's fire and
police personnel, or other less costly service than the Sheriffs Department. He asked staff to bring
back a report on March 27th taking a position in. opposition to this legislation and noticing the
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appropriate legislators and the County Board of Supervisors. He wished the Cal State Long
Beach 49ers good luck in the NCAA basketball finals against Tennessee.
In response to a question by Council Member Webb, Council Member Curry stated Council should
adopt a resolution in opposition and send it with a letter to the legislators and County Supervisors.
Council Member Webb suggested involving all the beach communities up and down the coast. On
Monday, for Arbor Day, the Rotary Club donated a tree to Newport Elementary School
and distributed seedlings to the third graders.
Mayor Rosansky stated the group home conference attracted over 300 attendees from over 100 cities
throughout the state. The conference was a big success, and staff learned some valuable information
from the best practices session. The most eye - opening matter was that other cities have a similar
problem, and hopefully, if they band together, can get action at the state level.
Council will have a retreat on March 24th at the Central Library Friends Room beginning at 8:30
a.m. and noted the public is invited to attend. The discussion topic will be Council priorities for the
next year, or several years, and he encouraged anyone interested to attend.
On Thursday, March 15th, from 5:00 p.m. - 7 p.m., the first meeting of the Intense Residential
Occupancy Committee will be held in the Council Chambers, and he encouraged anyone interested
to attend.
XII. CONSENT CALENDAR
A. READING OF MINUTES/ORDINANCES AND RESOLUTIONS
1. MINUTES OF THE ADJOURNED REGULAR MEETING AND REGULAR
MEETING OF FEBRUARY 27, 2007. Waive reading of subject minutes, approve
as amended and order filed.
2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of
all ordinances and resolutions under consideration, and direct City Clerk to read by
title only.
B. ORDINANCES FOR INTRODUCTION
3. ORDINANCE TO AMEND CHAPTER 12.63 OF THE NBMC REORGANIZING
AND UPDATING THE CODE PROVISIONS REGULATING SOLID WASTE
MANAGEMENT [100 - 2007]. Introduce Ordinance No. 2007 -5 and pass to second
reading on March 27, 2007.
4. ORDINANCE AMENDING CHAPTER 15.45 OF THE NBMC REGARDING
DEVELOPMENT AGREEMENTS [100 - 2007]. Introduce Ordinance No. 2007 -6
amending Chapter 15.45 of the NBMC and pass to second reading on March 27,
2007.
C. ORDINANCE FOR ADOPTION
5. AMENDMENT TO CHAPTER 1.01 OF THE NBMC TO ADD SECTION
1.01.090 PROHIBITING THE ISSUANCE OF BUSINESS LICENSES,
PERMITS AND THE GRANTING OF DISCRETIONARY APPROVALS FOR
UNLAWFUL USES [100 - 2007]. Adopt Ordinance No. 2007 -4.
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D. RESOLUTIONS FOR ADOPTION
6. RESOLUTION RELATING TO CODE ENFORCEMENT IN WEST SANTA
ANA HEIGHTS (C -3773) (381100- 2007]. a) Adopt Resolution No. 2007 -14
authorizing the City's Code and Water Quality Enforcement staff to serve the West
Santa Ana Heights community for a two -year program or until such time as the City
annexes West Santa Ana Heights, whichever comes sooner; and b) authorize the
City Manager to execute a final contract with the County of Orange in substantially
similar form to the draft agreement attached to the staff report.
E. CONTRACTS AND AGREEMENTS
9. OASIS REDEVELOPMENT CONCEPTUAL PLAN - APPROVAL OF A
PROFESSIONAL SERVICES AGREEMENT WITH ROBERT R. COFFEE
ARCHITECT + ASSOCIATES (C -3920) [381100 - 2007]. Approve a PSA with
Robert R. Coffee Architects + Associates for architectural services at a not -to- exceed
price of $98,840 and authorize the Mayor and the City Clerk to execute the
Agreement.
10. AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH EIP
ASSOCIATES, INC. AND BUDGET AMENDMENT - HCD COMMENTS AND
FINAL PRINTING (C -3620) [381100- 2007]. Continue to March 27, 2007.
12. POLICE FACILITY LOBBY RENOVATION - REJECT ALL BIDS (C -3902)
[100 - 2007]. a) Reject all bids; b) request the architect to revise the plans and
specifications as needed to reduce project costs to meet the budgeted amount; and c)
direct staff to advertise the revised project for bid.
F. MISCELLANEOUS
13. BUDGET AMENDMENT TO ACCEPT A CHECK FROM THE NEWPORT
BEACH PUBLIC LIBRARY FOUNDATION AND APPROPRIATE FUNDS
FOR FY06 -07 EXPENDITURE ACCOUNT [100 - 2007]. Approve a budget
amendment (07BA -053) to increase revenue estimates by $6,979 in Account No.
4090 -5893 (Library Foundation Donations) and increase expenditure estimates by
the same amount in Division 4090 (Foundation).
15. REQUEST OF THE NEWPORT BEACH /OASIS SENIOR CENTER
BUILDING FUND [100 - 2007]. Approve granting official recognition to The
Newport Beach/OASIS Senior Center Building Fund Committee and provide
financial support to the Committee from the existing OASIS Capital Fund held in
the City Reserve Account.
16. MONTHLY PROGRESS REPORT ON PLANNING DEPARTMENT AND
DEVELOPMENT REVIEW FUNCTION [100 - 2007]. Receive and file.
17. PURCHASE OFFICE TRAILERS [100 - 2007]. a) Approve a budget amendment
(07BA -056) transferring the amount of $30,000 from salary savings in the
Engineering Division (5100 -7000) to Account No. 5100 -9400; and b) approve the
purchase of two (2) 24' x 40' office trailers from Modular Structures International at
a cost not to exceed $127,977.
S23. AWARD CONTRACT FOR POLICE DISPATCH ADJUSTABLE
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WORKSTATION PROJECT (C -3923) (381100 - 20071. a) Approve the purchase of
Police Communications Center replacement furniture from Russ Bassett
Corporation in the amount of $95,092; and b) authorize the City Manager to execute
a standard Professional Services Agreement with the vendor as approved by the
City Attorney's office.
Motion by Mayor_.Pro_Tem Selich to approve the Consent Calendar, with the exception
of the items removed (7, 8, 11 and 14, the continuance of Item 10 to March 27, 2007, and the
correction to the minutes).
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor
Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner
)III. ITEMS REMOVED FROM THE CONSENT CALENDAR
PROPOSED ASSESSMENT DISTRICT NO. 94 - PACIFIC DRIVE - CORONA DEL
MAR FOR UNDERGROUNDING UTILITIES AND DESIGNATION AS AN
UNDERGROUND UTILITIES DISTRICT (C-3922)1381891100-20071. .
Associate Civil Engineer Aroiniega responded to questions by Council Member Gardner
regarding noticing of the homeowner meeting on February 20th and tonight's Council
meeting and district construction costs. He noted that generally smaller districts have had
a higher assessment, but with the increase in construction costs, the costs have gone up
significantly.
In response to a question by Council Member Gardner, Mr. Arciniega stated that since the
petition for the district was received, there has been a boundary change with the addition of
some lots along Acacia Street, which was done at the suggestion of staff and the assessment
engineer. This is due to the benefit the properties fronting Acacia will derive from the
improved aesthetics. The average assessment for those lots is between $2,000 and $3,000,
approximately one quarter of the full assessment amount.
Mayor Rosansky stated this is a very small district (37 homes), and even if the cost is
roughly the same as a 200 -home district, part of the issue is staff time. Doing the districts
in piecemeal is more staff intensive, and the smaller districts don't make sense. Standards
for district size need to be established. There are other telephone poles that back up to these
homes, so additional streets could have been added to this district.
In response, Mr. Arciniega stated the original district ,fell apart, because the residents
wouldn't sign the petition due to the cost. The matter was shelved for a year or two until
another proponent came forward, and she was able to obtain the signatures and community
support knowing that it was going to be an expensive project. They had 62% certified in
favor of proceeding.
Mayor Rosansky stated that it's one thing to have someone come to your front door to sign a
petition, but when it comes to voting, that is a different story. He will support the matter as
the residents want it and will ultimately decide whether to go forward; however, staff needs
to establish criteria to make the assessment districts larger. He stated utility
undergrounding is taking place where he lives, and it has improved the area dramatically.
The expense is low in comparison to the amount of money invested in their homes.
Jerry Estroski expressed his opposition to Assessment District 94. He stated that it's
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important to note that Barbara Gladman, the proponent, no longer lives in the district. The
cost is not trivial, and from an aesthetic standpoint, the remaining poles are still there. If
they had a recommendation, they would say do it for all of Corona del Mar. He is opposed to
doing it for such a small district at such a significant cost when the remaining poles will still
be seen.
Scott Cameron, speaking on behalf of Melody Ord, questioned who proposes Assessment
Districts, why this district is limited to the proposed boundaries, why this is done in
a piecemeal. approach, whether the economics of citywide power pole removal has been
analyzed, and why it requires a majority protest vote.
Council Member Webb stated that Newport Beach has probably done more Assessment
Districts than any other city in the state. The process was started 35 years ago, and the
areas with above ground utilities are the older areas. Newer areas of the city have already
paid for undergrounding utilities in their home purchase price, and yet the question always
comes up about paying for it citywide. This would not be fair to those homeowners that have
already paid. It's nice to have larger districts, but in the case of the West Newport District,
it took 7 -8 years to obtain 50% of the petitions due to its size. There are residents willing to
settle for the higher price of a small district in order to get the work accomplished more
rapidly.
In response to a question by Council Member Gardner, Mr. Arciniega stated that typically
the neighborhood meetings are attended by less than 10% of the residents. For this district
(37 properties), there were 15 plus people who signed in at the February meeting, and the
reaction was very positive. Based on the meeting in February, he thought it was a solid
project. The proponents define the boundaries and are required to obtain 60% of the
property owner signatures. State law dictates the procedure of protest voting.
Mayor Pro Tem Selich questioned how residents go about getting an estimate for the private
hookup prior to voting on this. Mr. Arciniega responded that typically this is not addressed
until after the district is formed. An informational letter is sent to the residents, wherein it
is suggested they obtain estimates from three contractors and talk to their neighbors who
have gone through the process to determine what amount they should be paying for the
private property conversion. For a typical private property conversion on the peninsula,
which are smaller lots, the range has been from $1,500 to $5,000.
Motions Council Member Webb to a) adopt the following resolutions: (1) Resolution
No. 2007 -15 making finding on a petition for, adopting a map showing the proposed
boundaries of, and making appointments for proposed Assessment District No. 94; (2)
Resolution No. 2007 -16 declaring intention to order the construction of certain
improvements in proposed Assessment District No. 94; declaring the improvements to be of
special benefit; describing the district to be assessed to pay the costs and expenses thereof;
providing for the issuance of bonds; and designating the area an underground utilities
district; (3) Resolution No. 2007 -17 giving preliminary approval to the report of the
assessment engineer, setting the time and place for a public hearing as May 8, 2007; and
ordering the intention of assessment ballot procedure for Assessment District No. 94; and (4)
Resolution No. 2007 -18 approving contracts for utility improvements for Assessment District
No. 94; and b) approve the Bond Counsel Agreement with Robert Hessell.
The motion carried by the following roll call vote
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Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor
Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner
8. STATE CONSERVANCY GRANT AGREEMENT; GROUND LEASES; ADMIN WING
CONTRACT FOR THE BACK BAY SCIENCE CENTER; BUDGET AMENDMENT (C-
3481(H) (381100- 2007].
Mayor Rosansky questioned whether recommendation number 2 could be postponed until
receipt of the ground lease, since Council has not seen it. Assistant City Manager Kiff
stated it could be postponed, as the more critical things are the other items, and they are
encouraging Council to approve the sublease. However, he noted that the sublease is
contingent upon approval of the ground lease.
Mayor Rosansky stated his preference is not to approve the document until seen. Since the
City would not be bound by the sublease if the ground lease is not received, he will move
forward with approval, excluding recommendation number 2.
Motion by Mayor Rosansky to a) adopt Resolution No. 2007 -19 authorizing the City to
formally enter into and/or accept a funding agreement or similar document with the State
Coastal Conservancy (SCC) to accept $400,000 for the Back Bay Science Center; b) authorize
the Mayor to execute a Sublease with the County of Orange for the Water Quality lab wing
of the Back Bay Science Center, such Sublease to become effective upon approval by the
Orange County Board of Supervisors and upon the execution of the DF &G Ground Lease;
and c) authorize the City Manager or his designee to enter into a contract with the State of
California or its Department of Fish and Game to accept $900,000 for the design,
construction, construction management, and contingency for the Back Bay Science Center's
Administration Wing, provided that the contract fully compensates the City and its
contractors for design and construction management; and d) approve a budget amendment
(07BA -054) that appropriates $100,000 from the unappropriated Tide and Submerged Lands
Fund/General Fund Reserves to Account $7457- C0310600 (BBSC) (in increase from
$800,000 to $900,000 (only appropriated if the City reaches an agreement with the State
DF &G to accomplish the Admin Wing.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor
Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner
11. MEMORANDUM OF UNDERSTANDING WITH LIFEGUARD MANAGEMENT
ASSOCIATION (C -2058) [381100- 2007].
Council Member Daigle expressed concern that the pension benefits will have a fiscal impact
beyond this budget year and this particular employee group. She does not support the policy
change, but they are committed to working together toward the fiscal betterment of
the City.
Richard Nichols stated this is a 3% at 50 wage increase for pensions, which amounts to a
16% increase in pay without any increase in yearly pay, if all of it were paid by the City.
Only 9% is paid right now, and history has been that within two years,the City will pay
the entire amount. It is a huge pay increase for lifeguard supervisors who are on payroll the
entire year but only work five months a year, and questioned whether this is justified.
Mayor Rosansky stated that he will vote against the contract because of the 3% at 50. The
3% at 50 was given to safety personnel at a time when the stock market was rising and the
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cost of funding these plans was very low, but conditions have changed. The tide is turning
in the state as far as providing enhanced pension benefits, and this is not the appropriate
time to move against that trend.
Motion by Council Member Webb to approve and authorize the Mayor and City Clerk to
execute the Memorandum of Understanding (MOLT) with the Lifeguard Management
Association for July 2006 through December 2008.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Council
Member Webb, Council Member Gardner
Noes: Mayor Rosansky, Council Member Daigle
14. NEWPORT BEACH FILM FESTIVAL BANNERS - APPROVAL OF
ENCROACHMENT PERMIT NO. N2007 -0096 [100 - 20071.
Council Member Gardner expressed concern with a letter recently received from The Irvine
Company and also with the precedent Council may be setting, since there is a general policy
not to allow private sponsors of events to hang banners. City Manager Bludau responded
this has been allowed for Chamber of Comerce and Taste of Newport banners.
City Attorney Clauson stated that staff noticed quite a few poles in Fashion Island and other
areas were rusted and subsequently removed, and those need to be replaced by the City.
Her understanding is The Irvine Company desired a certain style of pole and paid to
have them installed and painted, but the City was ultimately responsible for maintaining
them. Since the City maintains all the light poles, the issue is the cost to replace them.
City Manager Bludau stated his understanding is The Irvine Company would maintain the
poles. Staff has recommended in the conditions of approval that the Film Festival be
required to sign a hold harmless agreement and maintain a minimum of $1,000,000
in liability insurance.
Council Member Webb expressed concern that The Irvine Company has consulted the pole
manufacturer, and the letter gives the City constructive notice that the poles aren't designed
to support banners. If this is the case, the banners should not be allowed on the poles.
City Attorney Clauson recommended this item be continued, as the letter was only received
this afternoon and has not been investigated by staff.
Mayor Rosansky stated Council's next meeting is March 27th, and the Film Festival would
like to begin hanging the banners on the 29th. He questioned whether discretionary
approval could be granted in order to meet their timeframe.
City Attorney Clauson indicated approval could be granted on all poles excluding the ones
identified in the letter until staff has had the opportunity to review the letter and determine
whether installation on the poles is appropriate.
Motion by Council Member Daigle to continue this item to March 27, 2007.
In addition, Council Member Gardner stated that an exception is also being made to allow
the banners to hang for a longer period than the maximum allowed.
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Substitute motion by Council Member._Curry to to give staff discretion to approve the
request of Display City, Inc. for the installation of 80 banners on 40 streetlight poles along
Newport Center Drive East/West from March 29, 2007 to April 29, 2007 for the 8th Annual
Newport Beach Film Festival based on the advice of the City Attorney to proceed if they
determine it is appropriate to do so given the constraints we are operating under.
The substitute motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor
Rosansky, Council Member Daigle, Council Member Gardner
Noes: Council Member Webb
XIV. PUBLIC HEARING
18. IN -LIEU PARK DEDICATION FEE ADJUSTMENT - APPRAISAL OF EASTBLUFF
AND BOB HENRY PARK (contd. from 2/27/07) [100 - 20071.
Motion._by_Council Member Webb to continue item to March 27, 2007.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor
Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner
19. COMMERCIAL SOLID WASTE COLLECTION: AWARD OF. NON - EXCLUSIVE
SOLID WASTE COLLECTION FRANCHISE TO FRANCHISEES [421100- 20071.
General Services Director Harmon stated that an overview of this item was presented today
at 4:00 p.m., and two changes were recommended: 1) an increase in the term to ten years,
and 2) a graduated increase in the diversion level starting year 1 at 50% to year 6 at 55 %.
Staff agrees with these changes.
Motion by_C.ouncil Member. Daigle to introduce Ordinance No. 2007.7, as amended to
change the term to ten years and to include a graduated increase in the diversion level for
year one to 50 %, increasing 1% annually to 55% at year six and remaining at 55% in years 7
through 10, granting a Non - exclusive Solid Waste Franchise for commercial collection to
those Solid Waste Collection Companies listed in Exhibit A of the staff report; and pass to
second reading on March 27, 2007.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor
Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner
20. NEWPORT BEACH BREWING COMPANY, REVIEW OF USE PERMIT NO. 3485 -
2920 NEWPORT BOULEVARD (PA2006 -177) [100 - 20071.
Motion by Council Member Webb to continue to March 27, 2007 to allow proper noticing
to occur.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor
Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner
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XV. PUBLIC_ COMMENTS
Shirley Conger spoke to the City's cost of paying for health care, noting these costs have risen
steadily at two to three times the inflation rate. She displayed a table from the New England
Journal of Medicine comparing health care costs of different countries (Canada, France, Germany,
Italy, Japan, Switzerland, United Kingdom, and United States) in 2003. She noted all these
countries, with the exception of the United States, have a single payer, universal health care
system. There is a bill in Sacramento now for single payer health care.
Jerome Tobis, physician and professor at the University of California School of Medicine, urged
Council support of Senate Bill 840, which will reduce health care costs for employees and retirees of
the City. The cost of insurance is rising 15 -20% annually. He asked Council to support the new bill
which provides health care for all and saves the citizens $8 billion.
Philip Bettencourt, Newport Coast resident, extended appreciation to Council Members Gardner
and Curry for their initiatives with traffic safety issues on Newport Coast Drive, and he especially
thanked Police Chief McDonell and the Highway Patrol for. their remote heavy vehicle inspection
program. He advised the 36th annual police recognition breakfast will be held on March 21st, 7:15
a.m., at the Hyatt Regency.
Michael Tidus, Jackson I DeMarco I Tidus and Peckenpaugh, stated he represents a number of
citizens regarding the group home issue. He asked whether Council had received their letter
yesterday regarding a moratorium, about an analysis the City should undertake regarding the
number of people seeking to open group homes in the near future, and whether a code enforcement
report could be presented at the next meeting. A number of residents are concerned about the
proliferation of group homes in close proximity to each other, noting they want a moratorium
imposed. The neighbors believe that some group homes will be getting their certificates of
occupancy and permits soon, and a moratorium needs to be placed on those permits. Regarding code
enforcement, many Inland Empire cities require group homes to pull permits, so this assists
with monitoring and ensuring that the homes are maintained to code. He encouraged Council to
pass an urgency ordinance placing a moratorium on group homes.
Mayor Rosansky encouraged Mr. Tidus to attend the meeting on Thursday, where these issues can
more adequately be addressed.
Dick Nichols also urged Council to pass a moratorium on this and asked Council to reconsider the
residential care ordinance. That ordinance is sabotaging some of the programs and exempting
facilities with six or fewer residents, which is not what state law says. State law exempts sober
living facilities, which is where people are housed, they receive no money, and have no programs.
The facilities being discussed allow program facilities and anything under six residents to qualify.
Lori Morris agreed with Mr. Tidus that 45 days is extremely reasonable and will allow the City
to resolve this critical issue and get an idea of what is going on. She requested Council's deep
consideration in this matter and that Council enact a moratorium. She stated she has appeared
twice (1/12107 and 2/12/07) before Council requesting conflict of interest statements. Contract
Attorney Wolcott called her on February 28th to notify her the documents were in the mail; however,
she has yet to receive them. She again requested to receive these statements in a timely manner.
City Attorney Clausen stated the first request was a demand for an investigation by the
City Attorney's office. The formal Public Records Act (PRA) request was received around February
14th. The documents were gathered, and they have 10 days to respond. On February 28th, Ms.
Wolcott had the information and called Ms. Morris to determine whether she wanted to pick them
up or have them mailed to her. They did not hear back from her, and she believes the documents
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were mailed to her on Monday.
Mayor Rosansky advised Ms. Morris that if she does not receive the documents by Thursday to call
him, and he will ensure the documents are provided to her.
Ken Kuhlman requested Council enact a 45 -day moratorium, which is not unreasonable.
XVI. ORAL.REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES
Mayor Pro Tem Selich stated the General Plan Implementation Committee interviewed consultants
for the Zoning Code rewrite and will bring the contract to the next meeting for approval.
Council Member Daigle stated the General Plan Implementation Committee also discussed and
approved the Development Agreement item on tonight's agenda.
XVII. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT
21. PLANNING COMMISSION AGENDA FOR MARCH 8, 2007 [100 - 20071.
Planning Director Lepo reported on the following Planning Commission items: Balboa Inn
LLC (PA2006 -270) - 105 Main Street; Thirtieth St. Architects, Inc. (PA2005 -158) - 2961 Cliff
Drive; Local Coastal Plan Amendment No. 2007 -001- Coastal Land Use Plan Update
(PA2007 -027); and Zoning Code Amendment Initiation.
XVIII. CURRENT BUSINESS
22. FISCAL YEAR 2007 -2008 BUDGET [100 - 20071.
Administrative Services Director Danner presented a PowerPoint slide show outlining the
budget preparation process, how revenues and expenditures are budgeted, and a comparison
of the 2006 -07 versus the 2007 -08 General Fund operating budgets. Mr. Danner. noted the
salaries and benefits and maintenance and operations budgets for fiscal year 2007 -2008
have increased by 2.9% and 4.5 %, respectively. He reviewed the summary of
included/excluded budget items, ceiling adjustments, increases and decreases in 2007 -08
ceiling adjustments, employee group negotiations, extraordinary budget amendments and
Capital Improvement Program (CIP) Projects, current CIP versus normal funding, General
Fund revenue and expenditure trends, General Fund expenditures by function, fund balance
trends for General Fund Reserves and internal service reserves, and General Fund
operating expenditures by category.
Mr. Danner spoke to the 2006 -07 versus 2007 -08 General Fund operating budget noting
there is a 3% increase in the overall budget. However, he stated this does not include
increases for bargaining units which have not settled their contracts yet or supplemental
department or City Council requests.
In response to a question by Council Member Webb, Mr. Danner stated that if Council wants
to include a CIP project for consideration in the budget process, the request should be
submitted to Public Works Director Badum or City Manager Bludau.
Council Member Daigle stated the City is experiencing extraordinary growth in
revenues with increased sales and property taxes. Expenses have kept up the pace with
revenues, and that is a growth of 8 -9% per year. Council questioned whether the
expenditures should continue to grow at this rate, so a determination was made to study
this at the Finance Committee level to sort out short- and long -term core expenses from
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what is left over for discretionary funding. The idea is to stabilize expenses so more money is
available for discretionary spending. Discretionary funds are important, as they allow the
Council to address community needs such as ballfield improvements, traffic signal
synchronization, bulkheads, etc. Although $5 million is earmarked for CIP projects in 2008,
the revenues from 2000. to 2007 have increased by $50 million. The majority of this
additional revenue may have gone to expense growth and also Council wanting to embark on
policy initiatives, such as refurbishing senior centers, etc., as well as being good fiscal
managers and returning tax dollars for lasting improvements. In terms of this year's
budget, Council may want to come to consensus on what guidance to give.
Council Member Henn stated the key issue is having a collective responsibility to provide a
services delivery system to the residents that minimizes the core cost over time. The
Finance Committee is structuring their thoughts as to how to go about determining where
the City stands as far as core efficiencies in service delivery, role models, and what issues
need to be addressed to satisfy themselves that core services are being delivered in the most
efficient way. In the current year budget, the most striking fact was the very narrow gap
between expenses and revenues. Core expenses should exclude CIP expenses and unusual
items such as the general election and discretionary additions to the reserves. There is a
need to agree upon a core expenses definition and to meaure progress in the current budget
cycle. The goal is to widen the gap between revenues and expenses or to begin to have
an impact in the current budget year. The budget process basically embeds prior practice,
and when done over a long period of time, things are embedded that perhaps shouldn't be.
The long -term process should be directed at looking at embedded practices. In the current
budget cycle, we have been looking at a 4 -year compound annual revenue growth rate of 9%
and a compound growth rate of 8.4% for core expenses, excluding CIP. His initial thought
was to try to achieve a target in the range of an inflationary increase number. Without
having the opportunity to further delve into the numbers, he can accept the 3% in this year's
budget. He expressed hope that in budget discussions, staff is challenged to look at
expenses that don't necessarily embed prior practice and are more efficient in the
short run and to solicit their input on more fundamental changes in the long run. His
guidance would be to minimize the number of core expenses and agree on a definition for
core expenses that can be discussed during the first Council budget review that gives a view
of what the core expense increase is and then what the other items on top of that would be.
His hope is to get the core expense number down to as close to 4% as possible.
Council Member Curry stated the City is approaching a time of great generational change as
far as facilities that need to be replaced, updated, and modernized to meet community
needs. This is an expensive proposition, but is necessary to leave a legacy of state -of- the -art
facilities for the next three generations. There will also be a generational change in the
City's workforce with the retirement of baby boomers, including many department
managers. This will allow Council to redesign how services are delivered, and this is the
opportunity to review how things were approached in the past and perhaps, where
appropriate, use new technologies, applications, and servicing agreements to approach them
differently in the future. It is the Council's responsibility to ensure a continued, solid fiscal
footing for the community.
Mayor Pro Tem Selich expressed support for the approach suggested by Council Members
Henn and Daigle in focusing on core expenses. Within the context of that, every year local
agencies are being required to implement additional programs and regulations mandated
by state and federal agencies, and this needs to be taken into account. We have to be able to
identify that and separate out when looking at the core expense growth.
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City. of Newport Beach
City Council Minutes
March 13, 2007
In response to a question by Council Member Curry, City Manager Bludau stated the Zoning
Code rewrite is an operational expense, as well as the General Plan update. Some of the
extraordinary expenses included in the budget may be one -time expenses that hopefully
won't need to be repeated in the future.
City Manager Bludau stated that last year Council formed a committee to look at how the
City could finance its facility needs. One of the recommendations brought to Council was to
put away $3 million a year. Although this may not be the correct number, this budget
includes that $3 million.
Mayor Rosansky stated the City has to be fiscally responsible with its money. Growth in
expenditures needs to be balanced against growth in services so that residents are provided
with the highest and best services. When these numbers are looked at, that information will
be needed. He questioned whether we are paying more for the same services or providing
more services and asked staff to be sensitive to this when providing the information in the
future.
City Manager Bludau stated the budget is ultimately Council's, so Council needs to feel,
comfortable with what it looks like, as it states what Council's priorities are.
XXDL MOTION FOR RECONSIDERATION - None
XX. ADJOURNMENT_ - Adjourned at 9:00 p.m. in memory of Jimmie Margaret Davis Curry to
8:30 a.m. on Saturday, March 24, 2007
The agenda for the Regular Meeting was posted on March 7, 2007, at 2:15 p.m. on the City Hall
Bulletin Board located outside of the City of Newport Beach Administration Building. The
supplemental agenda for the Regular Meeting was posted on March 9, 2007, at 12:30 p.m. on the
City Hall Bulletin Board located outside of the City of Newport Beach Administration Building.
City Clerk
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Recording Secr ry
Mayor
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