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HomeMy WebLinkAbout02/27/2007 - Study SessionCITY OF NEWPORT BEACH City Council Minutes Study Session February 27, 2007 — 4:00 p.m. ROLL CALL Present: Council Member Henn, Council Member Curry, Mayor Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner Excused: Mayor Pro Tem Selich CU_._RRENT. BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In response to a question by Council Member Gardner regarding the issuance of licenses to illegal businesses (Item No. 3), Mayor Rosansky stated that his understanding is that licenses are issued to anyone paying the licensing fee without checking the validity of the. business. Council Member Gardner expressed concern that this would institute a blanket ban, and there is at least one area where a conflict between State and Federal laws exists. In response to a question by Council Member Daigle on Item No. 525, she was advised The Irvine Company has expressed concerns regarding water quality. Council Member Daigle questioned the City's $100,000 yearly funding obligation and also the Committee's perspective on recommending the City send the letter. In response to a question by Council Member Curry pertaining to the ROMA Design Group contract amendment (Item No. 12), Assistant City Manager Wood stated the consultant will be performing unfinished work related to the fee study, but the amendment simply extends the term of the contract with no change in the contract amount. At the request of City Manager Bludau, Human Resources Director Ramsey advised an e -mail had been received today from Mark Zahoryin reducing the premium for Excess Workers Compensation (Item No. 17) to $377,730. She requested Council authorize the expenditure up to the maximum amount stipulated in the agenda report. On Item No. 19, Mr. Zahoryin was also able to negotiate another decrease of $23,547. Council Member Henn suggested that, prior to the next insurance renewal cycle, staff perform a survey of comparable cities pertaining to coverage, deductibles, and best practices, and that this be presented in summary format for consideration. 2. PARKING IN -LIEU FEE (10012007). Program Manager Daniel Trimble provided a brief report on the current parking -in -lieu and proposed parking -in -lieu fee programs, and requested Council's direction on the proposed program. In response to a question by Council Member Gardner, Mr. Trimble stated this program would apply to sober living facilities if classified as a commercial establishment. In response to a question by Council Member Webb, Assistant City Manager Wood stated this Volume 58 — Page 50 City of Newport Beach Study Session Minutes February 27, 2007 particular item was not reviewed by the Economic Development Committee. However, the Draft Strategic Plan for Fiscal and Economic Sustainability (Item No. SS3) was reviewed and supported by the Committee, and it includes the establishment of the parking -in -lieu fee program as an objective. Council Member Webb stated that essentially this program may only be useful on the Balboa Peninsula and the McFadden Square area of Corona Del Mar, as other areas in the city have large enough lots to provide parking. Assistant City Manager Wood stated that Council Member Webb's point may be that both parking meter and in -lieu parking revenues have not resulted in significant amounts of money to be able to resolve the parking issues, which can be attributed to the $150 annual fee being minimal and not covering the cost of providing the space, and there being two neighborhood enhancement zones on the peninsula where 50% of the annual revenue is not earmarked for the parking fund, but rather used for other types of public improvements within the zones. Council Member Henn expressed concern with the current program which has generated an inconsequential amount of revenue. The proposed program may also generate very limited funds and could severely impact redevelopment and development of areas where it is sorely needed. The $80,000 - per -space cost may result in additional waivers being granted, which would also net little revenue. This is a very complicated problem that is intertwined with the zoning ordinance and how parking is viewed. He expressed reluctance to proceed at this time and requested input from the Economic Development Committee and also from the Planning Commission. Council Member Curry concurred with concerns expressed by Council Member Henn. He stated the program could have value to the City; however, he requested an outreach program with the stake holders in the most impacted areas, the restaurant association, Chamber of Commerce, and the Economic Development Committee, and any others having an interest. In addition, he requested comparative data of surrounding cities to ensure equity. Council Member Henn stated that he would also like all or almost all of the parking revenue generated used to benefit parking in that particular area. Mayor Rosansky stated that it may be a legitimate program, but the proposed increase is substantial and will most likely generate complaints. As the City has not kept up with increasing these fees in the past, he suggested that, if Council proceeds with the program, annual increases be tied to the Consumer Price Index, construction cost index, or something similar, so that fees are not haphazardly increased. He suggested that maybe the City needs to be looking at solving the problem by approving projects and then using collected fees to pay down or service the debt. If the program does not generate sufficient revenue to address the parking issue, the City may want to do away with the program. People should provide their own parking or pay to use it, which would generate sufficient revenue to address the issue. In response to a question by Council Member Daigle, City Manager Bladau stated that no progress has been made on building a parking garage on the peninsula. Council Member Henn concurred with comments made by Mayor Rosansky to build parking facilities and then charge to use them. Mayor Rosansky stated the demand is there to provide parking facilities. Council Member Gardner stated there could also be problems for potential small business owners when the land changes hands and the new owners are subject to paying for parking that was previously gratis. Volume 58 - Page 51 City of Newport Beach Study Session Minutes February 27, 2007 Assistant City Manager Wood stated the idea is that this program would provide an alternative. Another thing to consider is that staff is not presenting this as an all-or- nothing proposal, and Council could elect to establish an in -lieu percentage fee of the cost to develop the parking and charge the user. Mayor Rosansky stated that another option is to increase the meter rates to generate additional funds. Pertaining to Council Member Daigle's question regarding the parking garage on the peninsula, City Manager Bludau stated the property owner recently asked whether Council is interested in pursuing the parking garage. Mayor Rosansky suggested that he present a proposal to the City. Mayor Rosansky stated the City of Huntington Beach had a similar situation and made an investment to provide parking, and the area is flourishing. Although Huntington Beach used redevelopment monies, there are alternatives to generating revenue to address the issue. Assistant City Manager Wood indicated that it appears Council's desire is to put as many resources into parking as possible and questioned whether Council should . reconsider the neighborhood enhancement zones, which take half of the parking revenue to be used for other public improvements in those zones. Mayor Rosansky stated that it may be time to review Council's priorities to ensure the money is being spent where needed. He expressed support for .sending the matter to the Economic Development Committee and the Business Improvement Districts to solicit input. Council Member Webb stated that it may also lead to condemnation of some properties, as there are no vacant parcels where the parking is needed. Mayor Rosansky expressed support for private property owners approaching the City with a business venture to provide needed parking. Council Member Henn stated that he would like the Planning Commission's input on the market rate parking issue, as this is related to zoning and land use. Mayor Rosansky suggested that a follow -up meeting be held with the Economic Development Committee to discuss concepts and to solicit community input. Council Member Gardner stated that she will bring the matter up at the next Corona del Mar Business Improvement District meeting. Mr. Trimble asked for Council direction on what should be done with the existing businesses currently paying the in -lieu fee. Assistant City Manager Wood stated that staff will have to determine how the fees were imposed for those properties and explore options. Mayor Rosansky asked staff to return with an analysis of the fees paid by the current payees and the method of imposition. 3. DRAFT STRATEGIC PLAN FOR FISCAL AND ECONOMIC SUSTAINABILITY (10012007]. Assistant City Manager Wood provided a brief report on the draft plan and requested Council feedback on the goals and objectives. She stated that one of the main questions is how active the City should be in business recruitment and outreach to attract new businesses to the city. This would require additional resources to track vacancies, site availability, and to work with property Volume 58 - Page 52 City of Newport Beach Study Session Minutes February 27, 2007 and business owners. However, due to the low vacancy rate, this may not be appropriate for the City to undertake. Council Member Gardner stated the plan does a wonderful job of utilizing the General Plan and its vision. She expressed support for business outreach to attract desirable businesses. Council Member Henn stated they were looking for the plan to be concise and also actionable. The idea is to establish target dates for implementation and determine whether they are on track with Council's objectives, and then ensure that staff time is directed to meeting these priorities. Council Member Curry stated it is an excellent document and blueprint for maintaining the economic vitality of the city. He stated cities should be involved in attracting desirable businesses, however, does not believe a lot of staff time needs to be committed unless underlying economic conditions change. The City should maintain a standing of being a.business- friendly place. Council Member Daigle stated she particularly likes goals 4 and 5 pertaining to the lower bay, as this is a resource that needs more investment. Mayor Rosansky stated that Newport Beach is a desirable area, as evidenced by the low vacancy rate. Council needs to be supportive of large -point sale generators, and this should be a goal of the City. The most important thing is to create a business environment that is conducive to doing business in a business -like manner. In response to questions by Mayor Rosansky, Assistant City Manager Wood stated that the hiring of additional staff would not be required. However, additional funding would be needed to retain the services of a consultant for business recruitment. At the request of Mayor Rosansky, Assistant City Manager Wood described the process staff takes when approached by a company desiring to do business in the city. City Manager Bludau added there are no set guidelines as to how to proceed with an inquiry, but all inquiries are handled with professionalism and staff is willing to meet with interested parties. Council Member Daigle stated there are existing businesses that are strong sales tax generators and are built -in opportunities for growth. Some of the City's priorities should be to continue working with these businesses and enabling them to expand. She expressed concern that if a wider net is cast, the focus on these businesses will be lost. In response to a question by Council Member Daigle, City Manager Bludau stated that the car dealership interested in the Caltrans property hired a private firm to check on the property. Public Works Director Badum added that Fletcher Jones is still interested in the property, but special legislation may be required to acquire the property, as the mechanisms in place did not allow the City to acquire the property. It is also his understanding that the private firm has also exhausted its ability to negotiate acquisition of the property. In response to questions by Council Member Webb, Assistant City Manager Wood explained the review process and intent of the Development Review Committee, and stated that the Economic Development Committee is looking for feedback on the goals and objectives, and then, if determined feasible, staff and the Committee would meet again to discuss Council's priorities and determine implementation dates. Council Member Henn stated the intent is to determine if there are any new objectives or if any revisions are necessary to the stated objectives, and then return the item to the Committee who will work with staff to determine implementation dates. The item would then be brought back to Volume 58 - Page 53 City of Newport Beach Study Session Minutes February 27, 2007 Council with any cost estimates. ` Council Member Gardner stated that larger businesses know the process to follow to approach cities, but it may be desirable for the City to establish a process to respond to inquiries from small business owners. Council Member Daigle stated that, in terms of retail, she would like staff to actively work to enhance revenues of existing businesses. Assistant City Manager Wood added that the background information included at the back of the document is a longer summary of the findings of the economic and fiscal studies and the visioning process, and staff felt it important to include it in this type of document. However, the Committee felt very strongly that it was too much information and that a shorter introduction and references to other documents should be used. Council Member Webb felt the document would more likely be read in shorter format. Mayor Rosansky expressed support for the Committee's recommendation. Council Member Webb stated the document can be amended as needed depending on how the plan is working. At this point, he does not feel qualified to add or delete goals or objectives. Council Member Henn added that it is a document the Committee should review annually. PUBLIC COMMENTS - None ADJOURNMENT - 5:10 p.m. N W20 City Clerk Recording S retary Mayor. Volume 58 - Page 54 .