HomeMy WebLinkAbout14 - Quarterly Business Report Jan-March 2013Q aEW FpRr
CITY OF
NEWPORT BEACH
c9GIF00.�P City Council Staff Report
Agenda Item No. 14
May 28, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Mary Locey, Public Information Specialist
APPROVED: 0`
TITLE: Quarterly Business Report — January through March 2013
ABSTRACT:
Provide a quarterly update of City business that includes financial information, status
reports on current key projects and updates from several of the City's Boards,
Commissions, and Committees.
RECOMMENDATION:
Review and file.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
DISCUSSION:
The Quarterly Business Report (QBR) provides a summary snapshot of City business
and activities in an easy to follow, user - friendly format. The attached QBR covers the
period of January through March 2013. The QBR is divided into three sections which
includes the City's financial standing and projections; updates on items being discussed
by the Boards, Commissions and Committees; as well as in -depth summaries of several
long -term projects taking place in the city.
The QBR is available on the City's website (newportbeachca.gov /qbr) and a printed
copy is on file at the Central Library.
Quarterly Business Report — January through March 2013
May 28, 2013
Page 2
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Mary Locey
Public Information S ialist
Attachments: A. Quarterly Business Report- January through March 2013
Now-
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Published by the City of Newport Beach
May 21, 2013
newportbeachca.gov/qbr
TABLE OF CONTENTS
1 Executive Summary
2 Market Update
3 Top "3" Revenues
8 Other Financial News
13 Board of Library Trustees
14 Building & Fire Board of Appeals
15 City Arts Commission
16 Civil Service Board
17 Harbor Commission
18 Parks, Beaches & Recreation Commission
19 Planning Commission
20 Finance Committee
21 Balboa Village Advisory Committee
22 Citizens Bicycle Safety Committee
23 Environmental Quality Affairs Committee
24 Newport Coast Advisory Committee
25 Water Quality /Coastal Tidelands Committee
26 Aviation Committee
27 General Plan /Local Coastal Program
Implementation Committee
28 July 4th West Newport Safety Planning Committee
29 Tidelands Management Committee
32 Balboa Boulevard Beautification
34 Civic Center & Park Construction
36 City Hall Complex Re -use
38 Corona del Mar Water Transmission Main
40 Fire Ring Removal
42 Group Residential Uses
44 Implement Traffic Management Plan
46 Lower Bay Dredging Project
48 Marina Park
50 Newport Banning Ranch
52 Park Avenue Bridge Replacement
54 Relinquishment of Newport Boulevard
56 Sunset Ridge Park
58 Updating Harbor Charges
60 West Newport Beach Facility Planning
62 Widen Jamboree in the Airport Area
Financial Report
city of newport beach I finance department
new port be achca.gov 1 949.644.3127
quarter ending march 31, 2013
EXECUTIVE SUMMARY
The Finance Department prepares quarterly financial reports to review the status of revenues and
expenditures for the City's funds. This report contains information on resources and expenditures for the
third quarter of the fiscal year, which is the period between January 1, 2013, and March 31, 2013. The
City's major General Fund revenue categories are likely to perform above projected levels due to the
improving economy. Current expenditures are thus far performing within expected levels. This report also
provides a high -level summary of some of the major funding initiatives that will be proposed in the
FY 2013 -14 Operating Budget.
Recent economic forecasts predict that the largest employment gains in Orange County are among
the City's most vital including leisure and hospitality, and professional, scientific and technical services.
Higher sales tax revenue resulting from lower unemployment and higher discretionary spending on
transportation, dining and leisure continues to improve the local economy through the third quarter.
Market Update
The Federal Open Market Committee meeting
minutes of March 19 -20, 2013, revealed that
some policymakers were concerned about
increased risks resulting from the central bank's
aggressive monetary stimulus. The minutes
suggested a growing sentiment for reducing asset
purchases later this year. Skeptical policymakers
said they were worried that continuing monetary
stimulus could cause instability in the financial
system along with a sudden rise in interest rates
and inflation. Under the latest version of its
quantitative easing policy, the Federal Reserve
Board (FRB) is buying $85 billion a month in U.S.
Treasuries and mortgage- backed securities. The
minutes offered market watchers a glimpse into
how the FRB intends to unwind some of Its $3.2
trillion balance sheet. Committee members said
holding its mortgage- backed securities debt to
duration would minimize the potential disruptions
to the markets. Although the final vote affirming
the policy statement was nearly unanimous, with
only one dissenting member, future FRB policy has
the potential to significantly impact the broader
economy.
Spending in the third quarter appears to be
declining, according to a recent Commerce
Department report. The decline in sales was
broad -based with auto sales registering a 0.6%
drop, sales at electronics and appliance stores
falling 1.6 %, and consumers spending 2.2% less
on gasoline. The Producer Price Index dropped
0.6% in March, marking the largest one -month
dip in wholesale prices since last May. Business
inventories registered a slight increase of 0.1% In
February, falling short of analysts' expectations.
Despite some of these negative economic
indicators at the national level, the stock market
continued Its trip into record territory and the
local economy continues to surge. According
to the California Employment Development
Department, the number of new jobs in Orange
County increased 2.3 %, or 30,600, from January
2012 to January 2013, suggesting widespread
recovery across the local economy. As a result
of these gains, Orange County's economy is
expanding faster than that of California or the
nation. Newport Beach's unemployment rate
stood at 4.2% as of December 2012.
Unemployment Varies
Significantly Throughout
California
Above 13%
10% to 13%
® 8% to 10%
ittimow 8%
A recent forecast by the Los Angeles County
Economic Development Corporation (LAEDC)
predicts that the largest employment gains
in Orange County will include those that are
among the City's most vital including leisure
and hospitality, and professional, scientific and
technical services.
Orange County jobs in financial activities,
which include mortgage refinancing,
increased 5.3 %, health -care positions grew
5.2% and professional and business services
jobs, which include software development,
rose 3.7 % from the prior year.
The growth in office jobs in Orange County in
particular has been a boon for the commercial
real estate market. Vacancy rates for the
office market have fallen to as low as 13% in
some parts of the county. The tourism industry
has also driven economic activity in the
area. The leisure and hospitality sector, which
outperformed all other sectors, has grown
43% since February 2012, adding 8,200 jobs.
The National Association of Realtors reported
vacation -home sales in Orange County
jumped 10.1 %from last year. Economists
predict February's 6.5% unemployment rate will
decline to 6.1% next year and return to a more
normal level of 5.2% by 2015. But it will take
several more years for the county's jobless rate
to reach a pre- recession level of about 4 %,
economists said in the report.
Top "3" Revenues
The General Fund's top three revenue sources (Property Tax, Sales Tax, and Transient Occupancy
Taxes) account for approximately 73% of General Fund revenues. With 75% of the year complete,
General Fund revenues overall are at 69% of projections. This is generally consistent with prior years as
certain revenues are received in the latter part of the fiscal year. Unlike prior periods, revenue results
can be forecasted with greater confidence by the third quarter of the fiscal year. The City has long
taken a conservative approach to forecasting revenues and continues to do so in the preparation of
the FY 2013 -14 budget, often assuming a "worst case scenario." This fiscal conservatism has created a
stable financial base. As a result, even in a downturn, the City of Newport Beach is able to maintain its
services at a high level, while reducing expenses to accommodate reduced revenues. The City's fiscal
discipline has allowed it to prepare balanced budgets and to save, both during prosperous and difficult
economic periods.
PROPERTY TAX
Property tax is the top source of revenue for the City, representing almost half (46.6 %) of all General
Fund revenues. Despite dramatic declines in the real estate market in recent years, sales data
demonstrates the high market values throughout the residential communities of Newport Beach. As the
chart below indicates, the median sales price in Newport Beach has shown a rise between March Q1
2012 and March Q1 2013. The number of sales during the some period has also risen.
City of Newport Beach Home Sales History
Single Family Residential Full Value Sales (01/01/2003- 03/31/2012)
i
a`
C
W
1,800.000
1,800,000
1.400.000
1 200.000
1.000.000
800,000
500.000
400,000
200,000
■ Sales — Median Price
,�o,�d,^d,^d o^ dt d d,d,dr5d d o` 8 d' d�o�d�S'�d o` 9 �0d d d d daoo�o�od dd1 d'dtiotid181d,�o`
Period
500
400
300
y
d
N
200
100
3
Overall, the City has received $47.1 million, or
65 %, of its budgeted property taxes through the
third quarter of FY 2012 -13. Secured property
taxes are recorded as they are remitted, in
large part, during December and April of each
year. A large secured property tax payment is
expected in late April. Most property tax revenue
categories through March are thus for meeting or
exceeding the prior year collection trend and the
revenue category overall is 8% higher than at this
same time last year. The "All Other" category is
higher than last year due largely to a $1.9 million
anticipated one -time receipt by year -end from
the county resulting from the dissolution of the
Santa Ana Heights redevelopment area. The total
amount expected by June 30, 2013, from the
redevelopment area dissolution is $2.6 million.
Housing demand within Orange County is
increasing, as are housing prices, and new
housing construction activity and commercial
development are projected to continue growing
in 2013. Existing home sales in Orange County
rose to 34,380 last year from 29,398 in 2011 — a
17% rise. According to economists, home sales are
expected to grow 12% in 2013. The forecast for
secured property tax is based on the amount
of new construction completed, the growth in
the City's property valuation, an estimate of
the City's exposure to property tax appeals,
an assumed tax collection rate and overall
housing market trends. Tax revenue on the
unsecured roll is based upon tenant -owned
personal property and fixtures and is forecasted
to decrease slightly based on current trends.
The City receives supplemental property tax
revenue when a change in ownership occurs
or new construction is completed. Although
supplemental tax revenue is increasing, the
amount forecasted for this revenue source is
less than originally forecasted in the FY 2012-
13 budget due to trend indications. Overall, it
is forecasted that property taxes will finish the
year $3.9 million, or 5.3 %, higher than the FY
2012 -13 amended budget. Fiscal Year 2013 -14
property taxes are forecasted at $77.6 million, or
approximately 3.3% higher than the FY 2012 -13
forecast, net of the one -time $1.9 million receipt
received in FY 2012 -13.
'Indudes an estimated one-time $1.9 million receipt resulting from the deolution of the Santa Ana Heights redevelopment area In F 12113
SALES TAXES
The City's sales tax base is largely generated from three main industry categories including autos and
transportation, general consumer goods, and restaurants /hotels. The largest segment, "Autos and
Transportation," accounts for 33% of total sales taxes and is represented by 181 new and used auto /boat/
aircraft dealers, supply stores and repair shops. The next largest segment, "General Consumer Goods"
accounts for 30% of total sales taxes and is represented by a multitude of stores and shops that provide
various consumer goods. The third largest sales tax segment, "Restaurants and Hotels," accounts for 20%
of total sales tax and is represented by 427 restaurants, hotels, clubs and other amusement places.
12113
Percent
Budget to
Forecast
Amended
Prior Year
Realized
12113
2013114
to 12/14
Budget
YTD Actual
YTD Actual
Inc /Dec
Budget
2012113
Forecast
Forecast
Forecast
Property Taxes
2012/13
2012113
2011/12
from PY
2012/13
Forecast
Variance
(Preliminary)
Variance
Secured
$60,236,000
$37,252,835
$35,632,346
4%
62%
$61,424,455
$1,188,455
$63,881,433
4%
Unsecured
2,400,000
1,963,533
2,092,899
-7%
82%
2,266,203
(133,797)
2,266,203
0%
Prior Year Penalties & Interest
1,300,000
977,697
957,084
2%
75%
1,200,000
(100,000)
1,200,000
0%
Supplemental
725,000
420,400
267,401
36%
58%
600,000
(125,000)
600,000
0%
In Lieu of VLF
6,788,083
3,508,049
3,394,863
3%
52%
6,965,878
177,795
7,166,788
3%
All Other'
1,635,228
3,050,100
1,030,826
66%
187%
4,493,737
2,858,509
2,446,545
-46%
TOTAL
$73,084,311
$47,172,615
$43,375,419
8%
65%
$76,950,273
$3,865,962
$77,560,969
1%
'Indudes an estimated one-time $1.9 million receipt resulting from the deolution of the Santa Ana Heights redevelopment area In F 12113
SALES TAXES
The City's sales tax base is largely generated from three main industry categories including autos and
transportation, general consumer goods, and restaurants /hotels. The largest segment, "Autos and
Transportation," accounts for 33% of total sales taxes and is represented by 181 new and used auto /boat/
aircraft dealers, supply stores and repair shops. The next largest segment, "General Consumer Goods"
accounts for 30% of total sales taxes and is represented by a multitude of stores and shops that provide
various consumer goods. The third largest sales tax segment, "Restaurants and Hotels," accounts for 20%
of total sales tax and is represented by 427 restaurants, hotels, clubs and other amusement places.
12/13
Budget to
Forecast
Amended
Prior Year
Percent
12/13
2013/14
to 12114
Budget
YTD Actual
YTD Actual
InclDec
Realized
2012113
Forecast
Forecast
Forecast
Sales Taxes
2012113
2012113
2011112
from PY
2012113
Forecast
Variance
(Preliminary)
Variance
Sales and Use Tax
$20,180,129
$12,130,810
$11,413,559
6%
60%
$21,102,543
$922,414
$22,247,340
5%
Property Tax in Lieu of Sales Tax
6,613,750
3,698,531
3,303,668
11%
56%
7,078,517
464,767
7,919,248
12%
TOTAL
$26,793,879
$15,829,342
$14,717,227
7%
59%
$28,181,060
$1,387,181
$30,166,588
7%
The City received $15.8 million, or 59 %, of its budgeted sales taxes through the end of the third quarter.'
A comparison of sales tax performance from the prior year reveals that the City realized a 7% increase
year- over -year. Overall, it is anticipated that sales taxes (including property tax in lieu of sales tax) will
finish the year $1.9 million, or 7 %, higher than the FY 2012 -13 amended budget. FY 2013 -14 sales taxes
are forecasted at $30.2 million, or 7% higher than the FY 2012 -13 forecast. These forecasts are based on
a number of factors including adjustments for economic trends in various industries, adjustments based
on the number of open and closed business permits, growth estimates from the State Department of
Finance, and local economic trends.
The chart below compares the most currently available quarterly data with the same period of the prior
year (from the second quarter - September 2012 to December 2012). Transportation, consumer goods,
and restaurants have seen the largest gains and are indicative of growing consumer confidence. The
chart also indicates that relative to the state and county, the City has a greater reliance on sales tax
revenue from the autos /transportation and restaurants /hotels categories.
Sales Tax Receipts Comparison Year - Over -Year (Dec 2011 - Dec 2012) and by City, County, and State
$2,500,000 35%
30%
25%
20%
15%
10%
5%
0%
' Businesses collecting sales and use taxes periodically remit the amount collected to the State Board of Equalization (BOE). To
compensate for the lag time between the sales period and the time that the tax is remitted to the City, the HOE advances 90% of
the net sales tax collections for the same period of the prior year. The difference between the advances and total actual receipts
for the quarter is remitted in the form of "clean -up" payments, which are included in the March, June, September and December
remittances. The amount of sales . tax realized through December represents four monthly advance payments and one December
2012 clean -up payment.
R
O
H
O
Z
0
a
R
U
x
m
r
a
ry
N
a
3
N
T
C
O
U
T
U
5
n
c
d $2,000,000
N
W
Y
`m
a
a
$1,500,000
$1,000,000
$500,000
$0
Autos and
Building and
Business and
Food and
Fuel and
General
Restaurants
Transportation
Construction
Industry
Drugs
Service
Consumer
and Hotels
Stations
Goods
$2,028,397
$55,961
$601,040
$343,242
$366,723
$2,011,671
$1,318,953
$2,267,802
$61,761
$456,949
$319,261
$340,694
$2,038,946
$1,404,606
MM�Q42011
33%
1%
7%
5%
5%
30%
20%
16%
5%
17%
5%
12%
32 %
15%
5%
17%
6%
30%
25%
20%
15%
10%
5%
0%
' Businesses collecting sales and use taxes periodically remit the amount collected to the State Board of Equalization (BOE). To
compensate for the lag time between the sales period and the time that the tax is remitted to the City, the HOE advances 90% of
the net sales tax collections for the same period of the prior year. The difference between the advances and total actual receipts
for the quarter is remitted in the form of "clean -up" payments, which are included in the March, June, September and December
remittances. The amount of sales . tax realized through December represents four monthly advance payments and one December
2012 clean -up payment.
R
O
H
O
Z
0
a
R
U
x
m
r
a
ry
N
a
3
N
T
C
O
U
T
U
5
TRANSIENT OCCUPANCY TAXES
The City has received $11 million, or 77 %, of its budgeted Transient Occupancy Taxes (TOT) through the
end of the third quarter. The amount collected represents a 9% increase over the same period last year.
This increase is due to higher occupancy rates in the City's hotels, motels, cottages, and resorts and a
generally improving travel and tourism business sector.
12113
Budget to Forecast
Amended Prior Year Percent 12113 2013114 to 12114
Budget YTD Actual YTD Actual Inc /Dec Realized 2012113 Forecast Forecast Forecast
2012/13 2012/13 2011112 from PY 2012/13 Forecast Variance (Preliminary) Variance
$14,390,157 $11,057,998 $10,021,208 9% 77% $15,298,000 $907,843 $16,363,510 7%
The largest year- over -year
transient occupancy tax
increases were derived from
the Fairmont Hotel, Marriot
Resort, and Resort at Pelican
Hill. It is anticipated that TOT
will finish the year $908,000, or
6.3 %, higher than the FY 2012 -13
amended budget. FY 2013 -14 TOT
is forecasted at $16.4 million, or
approximately 7% higher than the
FY 2012 -13 forecast.
Transient Occupany Tax Receipts FY 04/05 to FY 13/14 (estimated)
$18,000,
$16,000,
r
.
, ■ ■ MEN ■ ■ ■ ■
,e,
,
, ■ ■ ■ ■ ■ ■ MEN
, ■ ■ ■ ■ ■ ■ ■ ■ ■
,
$14,000,
$12,000,
$10,000,
$8,000,1
$6,004,
$4,0041
$2,000,1
FY 0405 FY 05 -06 FY 0607 FY 07 -08 FY 0"9 FY 09 -10 F(10-11 FV I1 -12 FY 12 -13 FY 13 -14
(ES) (Eq)
GENERAL AND TIDELANDS FUNDS EXPENDITURES BY DEPARTMENT
With expenditures at 70% of the amended budget, the General and Tidelands Funds are generally on-
track. The table below aggregates General and Tidelands Funds expenditures by department through
March 31, 2013. Some departments incur a greater or lower level of expenditures in the first half of the
year than in the second half due to the timing and seasonality of operations or programs. This variability
is generally consistent with prior years.
Department
FY 12113
Amended
Budget
YTD Expended
(3/31113)
Percent
Expended
(3131/13)
PY YTD
Expended
(3/31112)
PY Percent
Expended
(3/31/12)
City Council
1,003,776
689,816
69%
851,683
75%
City Clerk
724,950
566,994
78%
433,622
78%
City Manager
2,630,510
1,482,981
56%
1,349,152
69%
HR
2,593,673
1,739,260
67%
1,647,076
69%
City Attorney
2,301,853
1,499,827
65%
1,449,603
63%
Finance
7,289,050
4,684,600
64%
4,828,589
70%
Police
43,892,717
32,658,484
74%
30,668,985
73%
Fire
35,989,564
26,598,116
74%
25,629,080
74%
Community Development
8,798,347
6,166,043
70%
6,327,569
71%
Muncipal Operations
24,814,357
17,366,737
70%
16,899,678
70%
Library Services
7,418,858
5,230,440
71%
5,313,563
70%
Recreation & Senior Services
8,918,423
6,342,327
71%
6,170,908
73%
Public Works
8,402,854
5,471,007
65%
5,616,864
71%
Capital Projects
14,624,448
7,570,281
52%
9,265,485
60%
Total
$ 169,403,381
$ 118,066,911
70%
$ 116,451,856
71%
7
Other Financial News
PENSION UPDATE: RECENT STATE AND CITY
ACTIONS
The City of Newport Beach, like many other public
organizations throughout the nation, is focusing on
ways to address the imbalance where personnel
expenditures continue to grow faster than
revenues. Accrued pension liabilities continue
to exceed assets set aside to fund the projected
benefit obligations. And while the City has always
funded 100% of the actuarial determined pension
contribution, the market value of pension assets
has been quite volatile. The combined effect
of market volatility and changes in actuarial
assumptions is that the unfunded liability has
increased from less than $2 million in 2007 to a
high of $263 million in 2009 but is still $226 million
as of the last actuarial valuation date on June
30, 2011. The following sections describe the key
strategies and legislative enactments that have
provided some relief to the City's pension burden.
Working collaboratively with employees to
recalibrote the compensation structure and share
in the costs of pension obligations
Through the recently concluded collective
bargaining process, miscellaneous employees
in non- safety departments agreed to a 1.45%
increased pension contributions per year for
three years, ending in 2015. This will result in these
employees paying 12.35% of salary or almost 50%
of their position's current pension obligation.
$8
$7
$6
$5
$4
$3
$2
$1
Negotiations are continuing with the
miscellaneous employees in the Police and Fire
departments. By the conclusion of FY 2013 -14, all
safety employees will be contributing 9% of their
pensionable earnings to CalPERS or almost 25% of
the total current pension obligation.
State legislative action supports some initiatives
already undertaken by the City
The recently enacted State of California Public
Employee Pension Reform Act of 2013 ( PEPRA)
will create lower benefits for employees that
are new to the CaIPERS retirement system. This
will be a third tier of benefits as the City already
implemented a second tier pension plan that
will ultimately result in lower pension benefits
at a higher age at retirement and includes
employee cost sharing provisions. Among the
PEPRA provisions, the most significant pension
reform measures impacting the City are: reduced
retirement formula and increased retirement
ages, a cost sharing of 50% annual "normal
cost" by all members, anti- spiking provisions, and
pensionable compensation and limitations. This
provision is not required until January 2018 and
the City's miscellaneous and safety units already
exceed this requirement.
Employee Pension Contributions (in Millions)
FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 Est FY 14 Est FY 15 Est FY 16 Est
Estimates based on fiscal year 13 staffing levels.
Accelerating payments to reduce costs over the long term
In April 2013, the City Council adopted a plan to accelerate payments towards the unfunded liability
thus paying it down over a fixed and shorter time period avoiding potentially $100 million of interest
expense over the next 30 years. In a separate action, CalPERS adopted changes to its rate smoothing
policies. These changes are expected to increase employer contribution rates in the near term, but
improve the financial stability of the plans over time.
Implementing voluntary separation programs, outsourcing programs, and reducing staffing where
possible
The City has been very proactive in
restructuring and making strategic cuts
in department operations, striving to
evolve into a smarter, faster, smaller local
government. The proposed FY 2013 -14
balanced budget includes a net reduction
of 16 full -time positions and 14 full -time
equivalent (FTE) part -time positions. Many
of the staff reductions were achieved via a
Voluntary Separation Incentive Plan (VSIP)
in which 21 employees participated. The
Plan provides a six -month continuation
of health insurance contributions and
salary continuance of up to 10 weeks
for employees who agreed to leave City
employment prior to June 30, 2013. The
Historical Full Time Positions
ea -
na
914
�S
a Pw 's
« Pb r
ran
3003 30M 3901 3906 iPOi TN8 3PM 3010 3011 3012 30iJ 3@i�
one -time cash outlay for the VSIP benefit "9PM°
and leave cash-outs will cost nearly
onrr..
$700,000 initially but the ongoing salary and benefit savings will amount to $1.4 million annually. In recent
years the City outsourced its internal print shop operation, parking meter enforcement, and parking
lot operations while also implementing a one -stop shop customer service counter that further reduced
staffing costs.
In summary, the City has successfully pursued a number of strategies to drive the trajectory of future
pension costs downward. However, the cost savings associated with these measures will take years to
fully realize.
CONCLUSION
Over the past year, the City has developed several strategies to right size the organization, streamline
processes, and to foster an environment of economic vitality. As the result, the City's financial position
is generally performing as planned through the third quarter. In FY 2013 -14, staff continues to take a
conservative approach to forecasting revenues while proactively making strategic cuts to department
operations. As the economy slowly moves beyond "recovery," management will continue to focus on
Council priorities and maintain responsible fiscal planning and forecasting.
0
& Committees Report
city or newport beach I city manager's office
new port be achca.gov 1 949. 64 4. 3001
quarter ending march 31, 2013
Board of Library Trustees
PURPOSE:
Appointed by the Newport Beach City Council,
the Board of Library Trustees is a policy- making
board responsible for the administration of
City libraries. The Board considers the annual
budget for library purposes during the process
of its preparation and makes recommendations
to the City Council and City Manager. The
Board also approves or disapproves the
appointment, suspension, or removal of
the Library Services Director. Subject to the
approval of the City Council, the Board
accepts money, personal property, or real
estate donated to the City for library purposes,
and contracts with schools, county, or other
governmental agencies to render or receive
library services or facilities.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 708
COMMITTEE MEMBERS:
Jill Johnson - Tucker (Chair), Stephanie Murguia
Jerry King, Eleanor M. Palk, Robyn Grant
LENGTH OF TERM FOR MEMBERS:
The five members of the board serve for a term
of four years on a staggered basis.
FREQUENCY OF MEETINGS:
The first Monday each month, unless otherwise
noticed.
STAFF LIAISON:
Cynthia Pulliam Cowell, MLS, Library Services Dir.
STAFF SUPPORT:
Staff allocates approximately 22 hours a month
to this board.
QUARTERLY PROGRESS REPORT
The Board of Library Trustees met this quarter to discuss, review,
or approve the following items:
• Annual budget -The Library Services budget for
2013/2014 was approved as submitted, subject to de
minimis revisions as needed.
• Grand opening celebration - approved the Newport
Beach Public Library Foundation's recommendation to
purchase commemorative bookmarks as event
giveaways, at a cost not to exceed $4,000.
• Naming opportunities - approved a proposal to the
Newport Beach Public Library Foundation regarding
the size, length, and arrangement of letters for the nine
designated areas.
Visit the library online at newportbeachca.gov /nbpl.
13
Building & Fire Board
of Appeals
PURPOSE:
Determine the suitability of alternate materials and
methods of construction; to provide for reasonable
interpretations of the provisions of the Building
and Fire Codes; to hear written appeals regarding
the Chief Building Official's or Fire Marshal's
determinations.
COMMITTEE AUTHORIZATION:
Uniform Administrative Code, Section 201 and
NBMC 15.02.120
COMMITTEE MEMBERS:
Robert W. Yant (Vice Chair), James Anderson,
Ernie Liske, Richard R. Luehrs, Stephen Sandland,
and two vacant seats.
LENGTH OF TERM FOR MEMBERS:
The seven members of the board serve for a term
of four years on a staggered basis.
FREQUENCY OF MEETINGS:
Asneeded
STAFF LIAISON:
Kevin Kitch, Assistant Fire Chief
Seimone Jurjis, Chief Building Official
STAFF SUPPORT:
When the board is called into session, staff
allocates approximately six hours to each
session. Costs for services are recovered by the
payment of appeal application fees established
by City Council resolution. If an item presented
to the Board is staff generated, then no fees are
recovered.
14
QUARTERLY PROGRESS REPORT:
The board did not meet during the quarter.
Applications are being accepted to fill the two
vacant seats and the seats of Mr. Liske and Mr.
Luehrs whose terms expire on June 30, 2013,
neither are eligible for reappointment.
City Arts Commission
PURPOSE:
Appointed by City Council, the City Arts
Commission acts in an advisory capacity to the
City Council in all matters pertaining to artistic,
aesthetic and cultural aspects of the City. The
City Arts Commission also recommends to the
City Council the adoption of such ordinances,
rules and regulations as it may deem necessary
for the administration and preservation of
fine arts, performing arts, historical, aesthetic
and cultural aspects of the community.
On behalf of the City, the Arts Commission
actively encourages programs for the cultural
enrichment of the community and performs
such other duties relating to the arts as the City
Council may require.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 712
COMMITTEE MEMBERS:
Robert Smith (Chair), Rita Goldberg (Vice
Chair), Carole Boller (Secretary), Arlene
Greer, Gilbert Lasky, Caroline Logan,
Christopher Trela
LENGTH OF TERM FOR MEMBERS:
The seven members of the commission serve for
a term of four years on a staggered basis.
FREQUENCY OF MEETINGS:
The second Thursday each month, unless
otherwise noticed.
STAFF LIAISON:
Jana Barbier, Cultural Arts Coordinator
STAFF SUPPORT:
Staff allocates approximately 60 hours a month
to this commission.
QUARTERLY PROGRESS REPORT:
The City Arts Commission met this quarter to discuss, review, or
approve the following items:
• Concerts in the Parks and Shakespeare by the Sea -
met with staff to finalize performers, parks and dates for this
season's performances.
• Museum Tours - hosted a February 21 tour to The Norton
Simon Museum to see Vincent van Gogh's Self Portrait.
• Art Exhibitions - confirmed logistics for the year -long
exhibition of donated historic California Scene Paintings
that will rotate every four months from May 1, 2013 - April
30, 2014.
• Newport Beach Art Exhibition and Sale - finalized
marketing, accepted preregistration forms from 65 artists,
and coordinated the April 13 event at OASIS Senior
Center.
• Public Art - discussed several offered artworks as
donations or through purchase for site installation at the
Civic Center and other municipal properties. In March,
the City Council accepted a sculpture titled
"Uprooted II" by local artist Sarah A. Wilkinson, for a year-
long loan and display at the Civic Center. Staff began the
process of accumulating City -owned artwork from the old
City Hall on Newport Boulevard to inventory, clean and
store in the new art storage room located in
the expanded Central Library.
More information on the City's cultural arts programs
can be found online at newportbeachca.gov /
culturalarts.
15
Civil Service Board
PURPOSE:
Advise the Council on personnel matters,
recommend changes to the Civil Service System
Rules and Regulations, conduct appeal hearings
of City employees for disciplinary issues and
launch personnel administration investigations
for City employees covered by one of the Safety
Bargaining Units (FFA, FMA, LMA, NBPA and
PMA) and report its findings to City Council and
Manager.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Sections 710 & 711
COMMITTEE MEMBERS:
James "Mickey" Dunlap (Chair), Maiqual Talbot
(Vice Chair), Debra Allen, Douglas Coulter, Hugh
Logan
LENGTH OF TERM FOR MEMBERS:
The five members of the board serve for a term of
four years on a staggered basis.
FREQUENCY OF MEETINGS:
The first Monday each month, unless otherwise
noticed.
STAFF LIAISON:
Terri L. Cassidy, J.D.,
Deputy City Manager /Human Resources Director
Jyll Ramirez, Admin. Assistant to the HR Director
STAFF SUPPORT:
Staff allocates approximately 20 -25 hours a month
to this board, with an increase in staff time if
hearings are necessary.
iL7
QUARTERLY PROGRESS REPORT:
The Civil Service Board kicked off 2013 with
informational presentations on various City
department services and programs offered to
the community and staff. Life Safety Specialist II
Matt Brisbois delivered an excellent presentation
on the Fire Department's Community Emergency
Response Team (CERT) program, the 2012 FEMA
Winner for Outstanding Team Initiatives. Offering
an equally dynamic presentation was Recreation
Department Senior Services Manager Celeste
Jardine -Haug, who spoke about the various classes
and lifestyle enhancing benefits offered by the
OASIS Senior Center. Finally, Human Resources'
Department Assistant Kelsey Kenz shared Newport
Beach's interest and participation in the Healthy
Eating Active Lifestyle (HEAL) program (a joint
venture of League of California Cities and Kaiser
Permanente). The HEAL program focuses attention
on the city's fresh food at
Farmer's Markets to many parks
and trails available for fitness,
and is supported by the City
Manager's Office and Human
Resources to emphasize our
commitment to wellness /fitness
in City staff and the community. HEALTHY EATING
For more information on the ACTIVE LIVING
City's HEAL program, visit �r I
newportbeachca.gov /heal. v
The presentations are beneficial on multiple
levels, including a deeper awareness of what
City departments have to offer, a chance for
employees to meet the Civil Service Board
Members (and vice versa) and giving staff
members the opportunity to practice presentation
skills and Increase public speaking experience.
There were no employee appeals before the Board
this quarter.
Harbor Commission
PURPOSE:
The purpose of the Harbor Commission is to
provide the City of Newport Beach with an
advisory body representing the diverse uses of
Newport Harbor and its waterfront.
A. Advise the City Council in all matters pertaining
to the use, control, operation, promotion and
regulation of all vessels and watercraft within
the Newport Harbor,
B. Approve, conditionally approve, or disapprove
applications on all harbor permits where the
City of Newport Beach Municipal Code assigns
the authority for the decision to the Harbor
Commission,
C. Serve as an appellate and reviewing body
for decisions of the City Manager on harbor
permits, leases, and other harbor- related
administrative matters where the City of
Newport Beach Municipal Code assigns such
authority to the Harbor Commission.
D. Advise the City Council on proposed harbor -
related improvements.
E. Advise the Planning Commission and City
Council on land use and property development
applications referred to the Harbor Commission
by the City Council, Planning Commission, or the
City Manager.
F. Make recommendations to the City Council
for the adoption of regulations and programs
necessary for the ongoing implementation of
the goals, objectives, and policies of the Harbor
and Bay Element of the General Plan.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 702
COMMITTEE MEMBERS:
Doug West (Chair), Duncan McIntosh (Vice
Chair), Brad Avery, David Girling, Ralph Rodheim
Paul Blank, Karen Rhyne and City Council Liaison
Council Member Gardner
LENGTH OF TERM FOR MEMBERS:
The seven members of the commission serve for a
term of four years on a staggered basis.
FREQUENCY OF MEETINGS:
The second Wednesday of each month, unless
otherwise noticed.
STAFF LIAISON:
Chris Miller, Harbor Resources Manager
Shannon Levin, Harbor Resources Supervisor
STAFF SUPPORT:
Staff allocates approximately 25 hours per month to
this commission.
QUARTERLY PROGRESS REPORT:
The Harbor Commission met this quarter to discuss, review,
or approve the following items:
• Stand up paddle boarding in Newport Harbor
• Proposed options and recommended approach for
the City's Regional General Permit in 2014
• The proposed plan for eelgrass in Newport Harbor
• Yearly mooring permit review for the Virgin Oceanic
Mooring in Newport Harbor
• Dock project appeal for 2222 Channel Road
• Discussed the future of City owned property at Lower
Castaways
• Alternative mooring ideas for Newport Harbor
• Revisions to the purpose and responsibilities of the
commission
The City's Harbor Guide is available online at
newportbeachca.gov /harborguide.
17
Parks, Beaches &
Recreation Commission
PURPOSE:
A. Act in an advisory capacity to the City Council
in all matters pertaining to parks, beaches,
recreation, parkways and street trees.
B. Assist in the planning of parks and recreation
programs for the inhabitants of the City,
promote and stimulate public interest therein,
and to that end, solicit to the fullest extent
possible, the cooperation of school authorities
and other public and private agencies
interested therein.
C. Establish policies for the acquisition,
development and improvement of parks,
beaches and playgrounds and for the planting,
care and removal of trees and shrubs in all
parks, playgrounds and streets, subject to the
rights and powers of the City Council.
D. Perform such other duties as may be prescribed
by ordinance not inconsistent with the provisions
of the City Charter,
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 709
COMMITTEE MEMBERS:
Kathy Hamilton (Chair), Tom Anderson (Vice Chair),
Ron Cole, Roy Englebrecht, Phillip Lugar, Marie
Marston and Jack Tinalev
LENGTH OF TERM FOR MEMBERS:
The seven members of the commission serve for a
term of four years on a staggered basis.
FREQUENCY OF MEETINGS:
The first Tuesday each month, unless otherwise
noticed
STAFF LIAISON:
Laura Detweller, Recreation & Senior Services Dir.
Mark Harmon, Municipal Operations Director
W-1
STAFF SUPPORT:
Staff allocates approximately 57 hours per month
to this commission. This includes staff from the
Recreation & Senior Services Department and the
Municipal Operations Department.
QUARTERLY PROGRESS REPORT:
The Parks, Beaches & Recreation Commission met this
quarter to discuss, review, or approve the following
items:
• Award presentations- Presidential Volunteer
Award and Youth Flag Football Champions
• Bench donation - one approved
• Special Tree removals - one approved
• Street Tree Designation discussion - received and
filed
• Tree donation -one approved
• Tree removal appeal -one denied
Planning Commission
PURPOSE:
The Planning Commission has the following duties as
established by the City Charter:
A. After a public hearing thereon, recommended
to the City Council the adoption, amendment or
repeal of a Master Plan, or any part thereof, for
the physical development of the City;
B. Exercise such control over land subdivisions as is
granted to it by ordinance not inconsistent with
the provisions of the Charter;
C. Make recommendations to the City Council
concerning proposed public works and for
the clearance and rebuilding of blighted or
substandard areas within the City; and
D. Exercise such functions with respect to zoning and
land use as may be prescribed by ordinance not
inconsistent with the provisions the Charter.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Sections 706/707
COMMITTEE MEMBERS:
Michael Toerge (Chair), Bradley Hillgren (Vice Chair),
Fred Ameri (Secretary), Tim Brown, Kory Kramer, Jay
Meyers, and Larry Tucker
LENGTH OF TERM FOR MEMBERS:
The seven members of the commission serve for a
term of four years.
FREQUENCY OF MEETINGS:
Twice per month on the Thursday preceding City
Council meetings unless otherwise noticed.
STAFF LIAISON:
Kimberly Brandt, Community Development Director
STAFF SUPPORT:
Staff allocates approximately 25 hours per month to
this commission.
QUARTERLY PROGRESS REPORT:
The Planning Commission met this quarter to
discuss, review, or approve the following items:
• Uptown Newport- completed review and
recommended City Council approval.
• Corona del Mar Mixed Use Project (Plaza
Corona del Mar) - approved
• General Plan -conducted annual review
• Zoning Code Amendments - recommended
City Council approval of three amendments
to implement Housing Element strategies,
development standards affecting mixed use
development, and residential lot mergers.
• Old City Hall Reuse - recommended approval
to amend the General Plan, Coastal Land Use
Plan and Zoning Code to change the land use
designation of the old City Hall property.
• Various Public Hearings - related to residential
developments and architectural changes to the
Mariners Point development.
Projected Tasks:
• Amendment to the Telecommunications
Ordinance
• Draft Housing Element (completed on April 18,
2103)
• Continuation of discussion related to residential
lot merger regulations
• Review Capital Improvement Program for
General Plan compliance
• Woody's Wharf Conditional Use Permit (appeal
in process)
19
Finance Committee
PURPOSE:
Responsible for fiscal governance, the Finance
Committee reviews and monitors events and issues
which may affect the financial status of the City
and adheres to the Purpose and Responsibilities as
amended by Resolution No. 2013 -32.
COMMITTEE AUTHORIZATION:
Established by Resolution 94 -110
COMMITTEE MEMBERS:
Mayor Curry, Council Member Henn (Chair),
Council Member Petros
LENGTH OF TERM FOR MEMBERS:
Pursuant to Council Policy A -9, the Mayor
makes annual appointments, subject to Council
confirmation. There is no limit on the term Council
Members may serve.
FREQUENCY OF MEETINGS:
Based on the 2013 work plan, the Finance
Committee will meet monthly this year; however,
at this time there are no meetings scheduled
during the months of August, October or
December.
STAFF LIAISON:
Dan Matusiewicz, Finance Director
STAFF SUPPORT:
Staff allocates approximately 20 hours per month
to this committee. (It should be noted that the
majority of the materials and reports provided
to the Finance Committee are typical financial
reports that would need to be produced and
reviewed regardless of the Finance Committee's
existence.)
all
QUARTERLY PROGRESS REPORT:
The Finance Committee met in February and March this
quarter to discuss, review or approve the following items:
• The City's auditors, White Nelson Diehl Evans,
communicated audit results for fiscal year ending
June 30, 2012.
• Considered proposed revisions to the responsibilities of
the Finance Committee Charter.
• Directed 2013 committee work plan calendar of
meetings and topics.
• Reviewed highlights with actuary of the FY 2013 -14
Post Employment Retiree Insurance Actuarial
Valuation (AKA OPEB).
• Provided direction on CalPERS funding options.
• Assessed reserves level funding status and
recommendations.
• Provided direction on updates to the Facilities Finance
Plan.
• Conducted review of proposed revisions to
Council Policies B -2, Park Fee Policy; F -28, Facilities
Replacement Plan Policy; and a new Debt
Management Policy.
• Reviewed an outline of the Request for Proposal for
the Residential Solid Waste Program.
The City's budget documents can be found online at
newportbeachca.gov /budget.
Balboa Village Advisory
Committee
PURPOSE:
A. Oversee the timely implementation of
recommendations provided in the Balboa
Village Master Plan approved by the City
Council, including the establishment of
appropriate priorities consistent with City
Council directives;
B. Provide recommendations to the City Council
regarding: 1) the adoption of specific programs
or projects consistent with the Implementation
Plan; and 2) allocation of funding for Balboa
Village projects derived from a proposed
Parking Benefit District and other sources;
C. Provide recommendations to the City Council
regarding the addition, modification, or
elimination of revitalization strategies;
D. Provide recommendations to the governing
board of a proposed Parking Benefit District for
Balboa Village; and
E. Such other matters as directed by the City
Council.
COMMITTEE AUTHORIZATION:
Resolution No. 2012 -85
COMMITTEE MEMBERS:
Council Member Henn, Council Member Petros,
Ralph Rodheim, Tom Pollack, Gloria Oakes, Laura
Keane, Jim Stratton
LENGTH OF TERM FOR MEMBERS:
December 31, 2016
FREQUENCY OF MEETINGS:
The second Wednesday each month, unless
otherwise noticed.
STAFF LIAISON:
Brenda Wisneski, Deputy Community Development
Director
STAFF SUPPORT:
Staff allocates approximately 45 hours per month
to this committee.
QUARTERLY PROGRESS REPORT:
In January, the Balboa Village Advisory Committee
(BVAC) approved the 2013 work program which
focused primarily on parking strategies, including the
residential permit parking program, development of
parking benefits and shared district, evaluation of
meter rates, creation of an employee permit parking
program, evaluation of parking standards, and
suspension of the in -lieu parking program. The City
Council approved the work program and authorized
pursuing the recommended parking strategies
and retaining a parking consultant to conduct
the necessary field surveys. Other programs being
considered in 2013 include improved maintenance
opportunities and a special event Initiative. A
parking subcommittee and commercial facade
subcommittee were formed to support staff in project
development.
The BVAC reviewed the current maintenance
program for the Village and identified areas that may
need greater attention which ranged from sidewalk
cleaning to replacing trash receptacles. The City's
Municipal Operations Director indicated many of the
items could be addressed within the current budget,
while the BVAC directed the more costly items to be
addressed when the streetscape plan is reevaluated.
A parking survey was conducted at the end of March
which evaluated occupancy, turnover, as well as the
origin of the parked vehicle (i.e., resident, visitor, or
employee), The survey will be repeated in the summer
to evaluate the peak season. The results will be
critical to formulate appropriate parking programs.
The commercial facade subcommittee is working
with the Urban Land Institute to conduct a Technical
Advisory Panel (TAP) on September 11, 2013; this
intense, one -day workshop with a variety of design
professionals will focus on identifying creative
methods to enhance Balboa Village's public realm.
21
Bicycle Master Plan Oversight
Committee
PURPOSE:
The committee will meet as- needed to review and
provide input, guidance and a public forum for the
preparation of the Bicycle Master Plan.
COMMITTEE AUTHORIZATION:
Resolution 2013 -25
COMMITTEE MEMBERS:
Council Member Tony Petros (Chair), Michael Alti,
Lou Cohen, John Heffernan, Robert Kahn, Greg
Kline, Sean Matsler, Frank Peters
LENGTH OF TERM FOR MEMBERS:
TThe seven members of the committee serve for the
duration of the Bicycle Master Plan process.
FREQUENCY OF MEETINGS:
As needed
STAFF LIAISON:
Brad Sommers, Senior Civil Engineer
STAFF SUPPORT:
Staff from the Public Works Department and
It is estimated that staff from the Public Works
Department, Community Development Department
and Police Department will be involved in the
preparation of the Bicycle Master Plan.
QUARTERLY PROGRESS REPORT:
Community members were invited to apply for the
Bicycle Master Plan Oversight Committee (BMPOC)
by the City Clerk and an Ad Hoc committee
consisting of three City Council Members was
created to review and recommend prospective
committee members. Appointments were made
to the committee at the May 14, 2013 City Council
meeting.
In preparation of developing a bicycle master plan,
staff prepared a request for proposal (RFP) that was
released to qualified firms. A recommendation for
contracting with the most qualified consultant is
expected to happen in May.
22
Environmental Quality
Affairs Committee
PURPOSE:
It shall be the duty of the Environmental Quality
Affairs Committee to:
A. Advise the City Council on policies, programs
and projects that improve or detract from the
environmental quality of the City, as requested by
the City Council;
B. Comment on Notices of Preparation, as requested
by the City Council; and
C. Advise on any matter referred to the
Environmental Quality Affairs Committee by the
City Council or City Manager.
COMMITTEE AUTHORIZATION:
Established by Resolution 2012 -116
COMMITTEE MEMBERS:
Council Member Nancy Gardner (Chair), Council
Member Tony Petros, Carl Cassidy, Tyler Gentry,
Kimberly Jameson, Joshua Olazabal, Debbie Stevens,
Merrit Van Sant, Josh Yocam
LENGTH OF TERM FOR MEMBERS:
The seven members appointed by the City Council
shall serve a four -yeas term, with a limit of two
consecutive terms. Council Member appointees shall
serve a one -year term.
FREQUENCY OF MEETINGS:
Asneeded
STAFF LIAISON:
Patrick Alford, Planning Manager
STAFF SUPPORT:
Staff allocated approximately 20 hours to this
committee during the quarter.
QUARTERLY PROGRESS REPORT:
The members of the reconstituted EQAC were
appointed on February 12, 2013. Currently, only
one active project is assigned to the Committee:
the Back Bay Landing environmental impact report,
which is estimated to be ready for review in June or
July, 2013.
23
Newport Coast
Advisory Committee
PURPOSE:
Advise the City in the implementation of the
Newport Coast Annexation Agreement and any
other issue relating to Newport Coast, Newport
Ridge, or Crystal Cove.
COMMITTEE AUTHORIZATION:
Established by Resolution 2001 -81
COMMITTEE MEMBERS:
Three members appointed by the City, four
appointed by the Newport Coast Committee of
2000 (NCC2K). Current membership includes Mayor
Gardner, Council Member Curry, Jim McGee
(Chair), Gerry Ross (Vice Chair), Daniel Wampole
and one vacancy
LENGTH OF TERM FOR MEMBERS:
The seven members of the committee serve for a
term of three years.
FREQUENCY OF MEETINGS:
In recent years, called as needed.
STAFF LIAISON:
Dave Kiff, City Manager
STAFF SUPPORT:
Minimal given that the committee has not met in
recent years.
24
QUARTERLY PROGRESS REPORT:
This committee cannot be disbanded without
violating the Newport Coast Annexation
Agreement, which calls for its creation and
maintenance. This committee met frequently
- monthly at least - in 2001, 2002, and for a few
years after the January 1, 2002 annexation of the
Newport Coast community. With the community
center completed and operating, fairly few
issues arise that require the committee to meet.
Committee members remain relatively active
in City issues, and very active in Newport Coast
issues (typically via their Master Homeowners
Associations).
Water Quality /Coastal
Tidelands Committee
PURPOSE:
It shall be the duty of the Water Quality /Coastal
Tidelands Committee to:
A. Advise and make recommendations to the City
Council on policies, projects and programs that
support and /or strengthen existing regulations to
protect water quality and habitat in the bay and
ocean;
B. Advise and make recommendations to the City
Council on policies, programs and projects
that improve the water quality and habitat of
Newport Bay and the ocean;
C. Advise the City Council on implementation of
the Tidelands Infrastructure Capital Plan in the
following areas:
1. Sea level rise as it affects ocean beaches.
2. Ocean beach sand replenishment.
3. Other capital projects affecting the ocean
beaches and tidelands not covered by
other committees;
D. Advise and make recommendations to the City
Council on policies, programs and projects that
educate the watershed's population about the
value of Newport Bay and the ocean; and
E. Advise on any matter referred to the Water
Quality /Coastal Tidelands Committee by the
City Council or City Manager.
COMMITTEE AUTHORIZATION:
Resolution 2012 -115
COMMITTEE MEMBERS:
Council Member Gardner (Chair), Council Member
Henn (Vice Chair), George Robertson, Tom
Houston, Dennis Baker, Carl Cassidy, Louis Denger,
Fred Galluccio and Laird Hayes
LENGTH OF TERM FOR MEMBERS:
The two non - voting Council Members shall serve
a one -year term and the seven citizen members
serve for a four -year term.
FREQUENCY OF MEETINGS:
The second Thursday each month, unless otherwise
noticed.
STAFF LIAISON:
John Kappeler, Water Quality Manager
STAFF SUPPORT:
Staff allocates approximately 30 hours a month to
this committee.
QUARTERLY PROGRESS REPORT:
The Water Quality /Coastal Tidelands Committee
met this quarter to discuss, review, or approve the
following items:
• Water quality projects and programs- reviewed the
Santa Ana River Marsh Dredging project, the City's
street sweeping program, the City's water quality
and water conservation programs, the City's small
vessel waste and refuse program and the
committee's 2013 goal setting.
• Presentations- MiOcean Foundation and the EPA's
New Water Quality Standards.
25
Aviation Committee
PURPOSE
Generally, to assist the City in the implementation
of Council Policy A -17 (Newport Beach City Council
Airport Policy).
COMMITTEE AUTHORIZATION:
Established by Resolution No. 9597 (1979). Recently
amended by Resolution No. 2011 -31 (April 12, 2011).
COMMITTEE MEMBERS:
City Council (3) - Leslie Daigle (Chair), Rush Hill
(Vice Chair), and Tony Petros.
City Manager Dave Kiff
City Attorney Aaron Harp
Council District representatives - Kay Mortenson,
Henry Arjad ( #1), Eleanor Todd, Gerald Scarboro
( #2), Tom Anderson, Bonnie O'Neil ( #3), Tom Meng,
Jock Marla ( #4), John Cunningham, Craig Page,
Jock Marlow ( #5), Shirley Conger, Lloyd "Bud"
Rasner ( #6), Suzanne Casey, Jim Dunlap ( #7).
Representatives of Airport Working Group - Tony
Khoury, Barbara Lichman
Representative from Airfair /SPON - Melinda Seely
Resident of Newport Coast /Newport Ridge - Roger
Ham
General Aviation Representative - not yet named
LENGTH OF TERM FOR MEMBERS:
Not defined by Resolution.
FREQUENCY OF MEETINGS:
The last Monday of each month, unless otherwise
noticed.
STAFF LIAISONS:
Dave Kiff, City Manager
Tom Edwards, Consultant
STAFF SUPPORT:
Tom Edwards' attendance at the meetings and
his monthly "All Things Aviation" summary is part
of his monthly retainer ($5K /mo). Staff allocates
approximately eight hours per month to this
committee.
91
QUARTERLY PROGRESS REPORT:
The City sent a letter to the FAA regarding
impacts to the community of the FAA's recent
"NexGen" departure patterns for JWA called
the "RAWLZ ". RAWLZ is not yet adopted, but
is intended to mimic the traditional departure
patterns over Upper Newport Bay for flights
staying west of Las Vegas or turning north
(about 50% of all flights leaving JWA) and
where the planes have cockpit equipment to
follow the RAWLZ.
Committee members heard about the
"prepared project" in the EIR that would
amend and extend the neighborhood - friendly
protections at JWA, including the commercial
and general aviation curfews and the
passenger and average daily departure caps
for the loudest ("Class A ") planes.
It generally is the Committee's position that
the City always view Aviation via the lens
of Council Policy A -17 (Newport Beach City
Council Airport Policy). The policy does not
speak to departure patterns that may impact
one neighborhood over another, but it does
speak to the importance (above all else) of the
Settlement Agreement's protections.
More information can be found online at
newportbeachca.gov /jwa.
General
Plan
/Local Coastal
Program
Implementation
PURPOSE:
The Committee is charged with the tasks of
developing a work program for the
following items and overseeing its progress:
A. Revision of Coastal Land Use Plan;
B. Revision of Zoning Code;
C. Completion of Local Coastal Program
Implementation Plan;
D. Study of infrastructure needs associated with
development authorized in the General Plan,
and establishment of developer impact fees for
infrastructure;
E. Revision of City Council policies;
F. Revision of Building Code;
G. Public participation on the previous items; and
H. Any other means of implementing the General
Plan that may be assigned to the Committee by
the City Council.
COMMITTEE AUTHORIZATION:
Established by Resolution No. 2006 -106
COMMITTEE MEMBERS:
Council Member Selich (Chair), Mayor Pro Tern Hill;
Council Member Gardner, Planning Commission
Chair Michael Toerge, Planning Commissioner Fred
Ameri, and Planning Commission Vice Chair Bradley
Hillgren
LENGTH OF TERM FOR MEMBERS:
Ongoing until such time as the need for the
committee no longer exists.
FREQUENCY OF MEETINGS:
Monthly, until the completion of the draft
Implementation Plan.
STAFF LIAISON:
Brenda Wisneski, Deputy Community Development
Director
STAFF SUPPORT:
Staff anticipates that approximately 20 hours per
week will be spent drafting the Implementation
Plan for review by the Committee.
QUARTERLY PROGRESS REPORT:
The committee met on April 24, 2013 to discuss
the approach for developing the Coastal
Implementation Plan (IP). It is anticipated that
the committee will continue to meet monthly
to oversee drafting of the IP and provide policy
direction to City staff.
27
July 4th West Newport
Safety Planning Committee
PURPOSE:
The July 4th West Newport Safety
Committee was formed to assist the City of
Newport Beach in identifying measures to
help contain, and eventually eliminate,
unruly behavior in West Newport on
Independence Day. The Committee's goal
is to create a safe, family friendly holiday
environment that residents and visitors can
equally enjoy.
COMMITTEE AUTHORIZATION:
Established by Council Resolution No. 2002 -58 on
September 10, 2002.
COMMITTEE MEMBERS:
Council Member Henn (Chair), Council
Member Rosansky, Craig Batley, Mary Bryant,
Paul Watkins, Margie Dorney, City Attorney or
designee, Police Department staff member
LENGTH OF TERM FOR MEMBERS:
Ongoing until such time as the need for the
committee no longer exists.
FREQUENCY OF MEETINGS:
As needed
W-J
STAFF LIAISON:
Tara Finnigan, Public Information Manager
Lt, Evan Sailor, Newport Beach Police Dept.
STAFF SUPPORT:
Minimal support needed for committee work.
(Significant staff time expended for the traffic
control, law enforcement, and community event
efforts.)
QUARTERLY PROGRESS REPORT:
The committee did not meet this quarter.
Tidelands Management
PURPOSE:
The goals of the Tidelands Management
Committee are to:
A) Tidelands Capital Plan ( "TCP "). Make
recommendations to the full City Council
as to the components , prioritization and
implementation of the TCP.
B) Large Tidelands Capital Needs. Make
recommendations to the City Council as
to large tidelands capital needs outside of
the Harbor Commission's and Water
Quality /Coastal Tidelands Committee's
purview, such as in- harbor sea level rise
related projects.
C) Convene a Citizens Advisory Panel ("CAP")
of up to seven members, one of whom shall
be a member of the Harbor Commission, to
assist the Committee in accomplishing the
Committee's purpose and responsibilities.
CAP members shall serve up to two two -
year terms, staggered so that half of the
CAP members serve for two final years as
new CAP members' terms begin. The CAP
members are not members of this Committee
and shall serve strictly in a non - voting
advisory capacity at the pleasure of the
Committee.
D) Such other duties as may be assigned from
time -to -time by the City Council,
COMMITTEE AUTHORIZATION:
Established by Resolution 2011 -26, amended by
Resolution No. 2013 -35
COMMITTEE MEMBERS:
Council Member Henn (Chair), Council Member
Selich, Council Member Gardner
CITIZENS ADVISORY PANEL MEMBERS:
Linda Beimfohr, John Corrough, Win Fuller,
Terry Hartman, Jeff Herdman, Jerry King, Don
Lawrenz, Doug West
LENGTH OF TERM FOR MEMBERS:
Ongoing until rescinded by City Council action.
FREQUENCY OF MEETINGS:
The third Wednesday each month, unless
otherwise noticed.
STAFF LIAISON:
Chris Miller, Harbor Resources Manager
STAFF SUPPORT:
Staff allocates approximately 30 hours per month
to this committee.
QUARTERLY PROGRESS REPORT:
The Tidelands Management Committee met this quarter
to discuss, review, or approve the following items:
• Segregating harbor fee increases for harbor related
projects
• Tide control structure at the harbor entrance -
conceptual overview
• User fees for Newport Harbor
• Tidelands Management Committee purpose and
responsibilities - revisions
• Purpose and Responsibilities - reviewofthe
Commission's recommended revisions
• Newport Harbor revenue and expenses -review
29
Reports
city of newport beach I city manager's office
new port be achca.gov 1 949.644.3001
quarter ending march 31, 2013
Balboa Blvd. Beautification
DEPARTMENTS:
Public Works Department
PROJECT LEAD:
Iris Lee, Senior Civil Engineer
PROJECT START DATE:
Late 2012
TARGET COMPLETION DATE:
Spring 2014
DESCRIPTION:
In 2011, the City Council's Ad -Hoc Neighborhood
Revitalization Committee (NRC) created a
five- member Citizen Advisory Panel (CAP) to
guide the development of several landscape
revitalization conceptual plans in West Newport.
Recommendations formulated by the CAP apply
to three street segments in the City: (1) Balboa
Boulevard from West Coast Highway to 22nd
Street; (2) West Coast Highway from the Santa
Ana River to Newport Boulevard; and (3) Superior
Avenue from Ticonderoga Street to West Coast
Highway.
As part of the 2012 -2013 Fiscal Year Capital
Improvement Program project budget, City
Council approved funds to prepare construction
documents for enhanced parkway and median
landscaping on Balboa Boulevard from West
Coast Highway to 22nd Street. These construction
documents will build upon the CAP and Council
approved conceptual plans, developed by David
Volz Design Landscape Architects, Inc. (DVD), with
focus on the following emphasis recommended
by the NRC and CAP:
• Recognizing the West Coast Highway /Balboa
Boulevard intersection as the "gateway" to the
West Newport neighborhood and the creation
of a landscape and signage plan specifically for the
intersection;
• "Greening" of Balboa Boulevard through median
expansion and planting, parkway and bulb -out
planting, green screens at curb and residential walls
where possible and appropriate; and
• Improving pedestrian experience along Balboa
Boulevard.
FUNDING SOURCE:
General Fund
FUNDING REQUIRED FOR CONSTRUCTION:
$2,145,000
FUNDING ALLOCATED TO DATE:
$243,530
AMOUNT SPENT TO DATE:
$188,750
STATUS TO DATE:
Following the City Council's approval of funding for the
design, staff has been working closely with David Volz
Design on the various design elements. The design
development phase has been completed, and the
construction document phase is approximately 80
percent complete. Given that a portion of the project
is within Caltrans right -of -way, staff will be working
with Caltrans to obtain the appropriate permits. The
proposed CIP budget for FY 13 -14 includes additional
funding for construction. It is anticipated that
construction documents will be completed and the
project will be advertised for bids in Summer 2013 with
construction starting in Fall 2013.
33
Civic Center & Park
DEPARTMENTS:
City Manager's Office
Public Works Department
PROJECT LEAD:
Steve Badum, Assistant City Manager
PROJECT START DATE:
2008
TARGET COMPLETION DATE:
Spring 2013
DESCRIPTION:
The Civic Center & Park construction project
includes a LEED silver City Hall office building, one
of the city's largest parks (15 acre), a 450 -space
parking structure, an emergency readiness
center, a restored wetlands, a dog park and an
expansion of the Newport Beach Central Library.
It is located on two parcels inland of the Newport
Beach Central Library and bordered by Avocado
Avenue and MacArthur Boulevard. The project
also includes a community room, new Council
Chambers, a "One Stop" Customer Service
Center, a civic green, and a small cafe to serve
library and city hall customers.
FUNDING SOURCE:
Bond Proceeds and General Fund
FUNDING REQUIRED FOR CONSTRUCTION:
$108,123,000 (estimated construction -does not
include soft costs)
FUNDING ALLOCATED TO DATE:
$108,123,000 (hard construction costs only)
AMOUNT SPENT TO DATE:
$108,123,000
STATUS TO DATE:
After much anticipation, City staff moved in to the
new building and we opened for business on April
11, 2013. On May 4, 2013, the Civic Center including
the City Hall building, library extension, and park was
officially dedicated. Approximately 2,500 community
members attended the ribbon cutting and open house
celebration.
Project and construction information and photos are
available online at newportbeachca.gov /cMccenter.
35
City Hall Complex Re -use
DEPARTMENT:
Community Development
PROJECT LEAD:
Kimberly Brandt, Community Development
Director
PROJECT START DATE:
July 2010
TARGET COMPLETION DATE:
December 2014
DESCRIPTION:
With the new Civic Center complete and staff
moved in, the City has been planning for the
re -use of the former City Hall complex located
at the corner of Newport Boulevard and 32nd
Street. The site provides an excellent opportunity
for redevelopment in a manner that benefits
the areas of Lido Village, Balboa Peninsula, and
West Newport Beach. The goal is to develop and
approve a plan for the future use of the property
located at 3300 Newport Boulevard. Work is
progressing on amendments to the General Plan
Coastal Land Use Plan, and Zoning Ordinance to
accommodate a future mixed use development
that would be either a luxury apartment
community with possibly a small ancillary retail
component or an upscale, boutique hotel with
possibly a complementary residential element.
FUNDING SOURCE:
General Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
Funding to be determined and is dependent
upon the full scope of necessary analysis.
FUNDING ALLOCATED TO DATE:
Approximately $90,000 has been allocated
for the preparation of market and economic
feasibility analysis and environmental review.
AMOUNT SPENT TO DATE:
Approximately $90,000
STATUS TO DATE:
The City issued a Request for Proposals in early
February 2013, and by the due date of April 18, 2013, a
development proposal was received from R.D. Olson
Development, Shopoff Group /The Wolff Company,
and Sonnenblick Development Company, for a total of
three submittals. Each proposer presented its concept
plans to the City Council on April 23, 2013 during the
study session meeting. Once staff concludes its review
and analysis of the three proposals, staff will return to
the City Council for further direction. It is tentatively
scheduled for a July 2013 City Council meeting.
Project Timeline:
• Coming months - Once the City Council approves the
amendments to the Coastal Land Use Plan, approval by
the California Coastal Commission will be required.
• January 17, 2013 - Planning Commission recommended
adoption of the draft land use amendments. The City
Council will take action after the development proposals
are reviewed.
• January 8, 2013 - Six teams were selected by the City
Council to participate in preparing specific development
projects.
• November 2012 - Satements of qualifications were
received from 15 project teams.
• October 2012 - the City issued a Request for Qualifications
(RFQ) from developers interested in participating in the
redevelopment of the site.
• September 2012 - direction was given by the City Council
to include a hotel or mix -use apartment type of project in
the RFQ process and on the scope of the land use and
zoning amendments.
• June 2012 - The City Council initiated the necessary
land use plan and zoning amendments to change
the site's land use designation and zoning from Public
Facilities to Mixed -Use to provide flexible land use for the
future redevelopment.
More project information is available online at
newportbeachca .gov /cityhallreuse.
37
Corona
del
Mar
Water
Transmission
Main
DEPARTMENT:
Public Works Department
PROJECT LEAD:
Patrick Arciniega, Senior Civil Engineer
PROJECT START DATE:
July 2013
TARGET COMPLETION DATE:
Fall 2014
DESCRIPTION:
The Corona del Mar Water Transmission Main
project will increase reliability of the water pipeline
system, improve supply pressures and increase fire
supply flows to the Corona del Mar Village. The
project consists of installing a new 30" steel water
transmission main that connects to the Big Canyon
Reservoir at Pacific View Drive and runs down San
Miguel Drive, San Joaquin Hills Road, MacArthur
Boulevard, East Coast Highway and Carnation
Avenue. The new line is approximately 5,300 linear
feet of cement mortar lined and tape wrapped
(CML &TW) steel pipe. The project also includes
relocating the City's current pressure regulator
structure that joins the Metropolitan Water District's
system that is currently located in East Coast
Highway at Fernleaf Avenue, to a new location on
Dahlia Avenue.
FUNDING SOURCE:
Water Enterprise Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
$5.2 million
FUNDING ALLOCATED TO DATE:
$5.2 million
AMOUNT SPENT TO DATE:
$400,000
STATUS TO DATE:
Construction bids for this project were opened
on January 10, 2013. The City Council awarded
a contract to the low bidder T.E. Roberts, Inc., on
January 22, 2013. Staff has met with the contractor
to discuss preliminary details, shop drawings and
project scheduling. Staff has presented information
on this project to the Corona del Mar Residents
Association and Business Improvement District and
will make every effort to coordinate construction
activities to minimize impacts on the businesses and
residents.
Construction is anticipated to begin in Summer 2013
with completion estimated by Fall 2014.
Project information is available on the City's website
at newportbeachca.gov /cdmpipeline.
39
Fire Ring Removal
DEPARTMENT:
Community Development Department
PROJECT LEAD:
Brenda Wisneski, Deputy Community Development
Director
PROJECT START DATE:
February 2012
TARGET COMPLETION DATE:
Spring 2013
DESCRIPTION:
Newport Beach has concrete fire rings on the
beach in two areas: there are 27 fire rings located
on Corona del Mar State Beach and 33 fire rings
located near the Balboa Pier. Some of the fire rings
are located on State property (Corona del Mar),
and all of the fire rings are located in the coastal
zone. The fire rings are appreciated by many who
visit, but also result in extensive and often daily
wood smoke released in adjacent residential areas.
The City Council voted 7 -0 in favor of upholding
the Parks, Beaches & Recreation Commission's
recommendation and directing City staff to take
the necessary steps to remove the fire rings at
both locations. Removal of the fire rings requires a
Coastal Development Permit to be issued by the
California Coastal Commission.
FUNDING SOURCE:
General Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
None
FUNDING ALLOCATED TO DATE:
None
AMOUNT SPENT TO DATE:
None, other than staff time
STATUS TO DATE:
An application for the removal of the fire rings
was fled with the California Coastal Commission
(CCC) in May 2012 and was deemed complete
in November 2012 and a hearing was scheduled
to be held in San Diego in March 2013. On
March 1, 2013, the Governing Board of the
South Coast Air Quality Management District
(SCAQMD) directed its staff to consider including
a prohibition of beach burning in its amendment
to Rule 444 - Open Burning, which would be
considered for approval by the Board on May
3, 2013. Due to this additional review, the CCC
postponed a decision on the matter until at least
July 2013.
Project information is available online at
newportbeachca.gov/firerings.
41
DEPARTMENTS:
City Attorney's Office, City Manager's Office,
Community Development
PROJECT LEAD:
City Attorney and City Manager
PROJECT START DATE:
2007
TARGET COMPLETION DATE:
Ongoing
Group Residential Uses
DESCRIPTION:
Implement and defend group home regulations
to maintain the residential character of the City's
residential neighborhoods while providing equal
access to housing and accommodating the needs
of the disabled.
FUNDING SOURCE:
General Fund and Fund Balance
TOTAL FUNDING REQUIRED FOR PROJECT,
All costs have not been specifically identified since a
great deal of the costs is internal, staff resources from
the City Manager's Office, City Attorney's Office,
Planning, and Code Enforcement,
FUNDING ALLOCATED TO DATE:
$3.5 million on outside counsel and litigation costs to
date.
AMOUNT SPENT TO DATE:
$3.5 million on outside counsel plus internal
staffing and the Hearing Officer for administrative
proceedings.
STATUS TO DATE:
Ordinance No. 2008 -05 has been adopted and
enforced through all necessary administrative
proceedings. The City is at the stage of defending
the Ordinance in Federal Court and in U.S.
Department of Justice and Department of Housing
and Urban Development proceedings. Additionally,
the City is in litigation with several operators of group
homes who have failed to comply with the provisions
of the Municipal Code. As to these issues:
(1) federal Litigation:
The federal litigation involving Yellowstone, Pacific
Shores Newport Coast Recovery and the City was
successfully resolved in the City's favor but is on
appeal before the 9th Circuit Court of Appeals. A
three -judge panel of the 9th Circuit Court of Appeals
heard oral arguments on November 6, 2012. The
City is awaiting a written opinion from the 9th Circuit
Court of Appeals.
(2) Challenge to Morningside Zoning Agreement:
Maintain Our Residential Neighborhoods ( "MORN ")
has fled a challenge to the adoption of the Zoning
Agreement with Morningside Recovery that was
the vehicle for settling the Federal Court litigation
involving the City and Morningside Recovery. This
case is set for trial in late May of 2013; however, it is
anticipated that this case may be dismissed if the
Court's decision is in favor of the City in the case
over the termination of the City's Zoning Agreement
with Morningside.
(3) Enforcement of Morningside Zoning Agreement:
On August 9, 2011, the Council adopted Ordinance
No. 2011 -20, which terminated the Zoning Agree-
ment between the City and Morningside. Morning-
side fled a challenge to the City's termination of
the Zoning Agreement in Orange County Superior
Court and the City fled a cross - complaint against
Morningside seeking to abate the violations of the
City's Zoning Code at 4823 A River Avenue, 4823 B
River Avenue, 29 Ima Loa Court, 100 Via Antibes,
102 Via Antibes, 208 Via Lido Soud and 533 Via Lido
Saud. On December 15, 2011, the Court granted
the City's motion for a preliminary injunction and
ordered Morningside to fully comply with all of the
operating conditions in the Zoning Agreement
during the pendency of the litigation. The Court
also prohibited Morningside from opening any new
unlicensed facilities within the City or expanding
any of its existing facilities to serve more clients. On
June 19, 2012, the Court granted the City's motion
upholding the City's decision to terminate the Zon-
ing Agreement. Trial on the City's cross - complaint
to abate violations of the City's Zoning Code con-
cluded in late March of 2013 and the Court should
issue a decision within the next three months.
(4) Enforcement Against Yellowstone:
With the Council's authorization, on October 11,
2011, the City filed a civil case seeking to abate
four Yellowstone residential care facilities located
at 1621 Indus Street, 1561 Indus Street, 20172
Redlands Drive and 1571 Pegasus Street, based
on Yellowstone's alleged violation of the Newport
Beach Municipal Code. The Court has stayed this
action pending a decision by the Ninth Circuit
Court of Appeals in the aforementioned lawsuit.
43
Implement Traffic Management
DEPARTMENT:
Public Works
PROJECT LEAD:
Dave Webb, Public Works Director
Tony Brine, City Traffic Engineer
PROJECT START DATE:
January 2007
TARGET COMPLETION DATE:
Fall 2015
DESCRIPTION:
This project modernizes traffic signals throughout
the city, improving system reliability, traffic flow
and reducing congestion. The implementation
of the traffic signal modernization program
allows staff to monitor, adjust and optimize traffic
signal timing and operations from the Traffic
Management Center (TMC) located at City
Hall. The program consists of upgrades to 120
traffic signals with new controllers, fiber optic
connections, and Closed Circuit Television (CCTV)
cameras at selected intersections.
FUNDING SOURCE:
Transportation and Circulation, Measure M
Turnback, Measure M Competitive
TOTAL FUNDING REQUIRED FOR PROJECT:
$6,500,000
FUNDING ALLOCATED TO DATE:
$6,000,000 (excludes Phase 8)
AMOUNT SPENT TO DATE:
$5,200,000
STATUS TO DATE:
Due to the overall size of the traffic modernization
program, it was divided into eight phases. To date,
90 traffic signals have been upgraded and linked to
the new high speed fiber optic backbone, 27 CCTV
cameras have been installed, and the new TMC at
the Civic Center is operational. The City's annual
traffic signal rehabilitation program is for performing
necessary maintenance on existing signal equipment
and was combined with the modernization program
for efficiency. The noted funding information only
includes estimates for the traffic modernization
program.
Program Overview:
Phases 1 through 5 and Phase 7 are complete and
operational. These phases include the Intersections
along Balboa Peninsula, Superior Avenue, MacArthur
Boulevard, Jamboree Road, City owned portions
of Coast Highway and intersections in the airport area,
Newport Center and along Irvine Avenue.
Phases 6 and 8 include improvements to Newport
Coast Drive, San Miguel Drive, Bonita Canyon Drive,
and portions of San Joaquin Hills Road. The design
of Phase 6 is underway. Phase 8 is partially under
construction and with the remainder of its design
taking place In fall of 2013. Measure M2 grant funding
was awarded for a portion of the project's
construction. Portions of Phases 6 and 8 will
be designed and constructed through a
cooperative agreement with the City of Irvine
in Fiscal Year 2013 -14. This partial phase was
also awarded Measure M2 grant funding for
construction.
45
Lower Bay Dredging
DEPARTMENT:
Public Works
PROJECT LEAD:
Chris Miller, Harbor Resources Manager
PROJECT START DATE:
2012
TARGET COMPLETION DATE:
February 2013
DESCRIPTION:
The project initially included dredging
approximately 1.2 million cubic yards in the main
navigational channels of the Lower Bay by the
federal government. Due to budget constraints, the
Army Corps of Engineers initiated a smaller project
to dredge approximately 350,000 cubic yards
of sediment in the harbor's critical areas. About
two- thirds of the sediment was suitable (clean) for
ocean disposal at the off -shore site "LA -3 ", with the
remaining material disposed at the Port of Long
Beach ( °POLB °). This part of the project, Phase I,
commenced May 1, 2012, and was completed in
September 2012.
In July 2012, the City Council and the County
Board of Supervisors approved additional funding
for Phase II which will dredge an additional
210,000 cubic yards of sediment. When Phase II
is complete, nearly all of the shallow areas in the
harbor will be dredged to authorized depths.
FUNDING SOURCE:
Federal Funds and Tidelands (City and County)
TOTAL FUNDING REQUIRED FOR PROJECT:
$11.5 million (Phases I & II)
FUNDING ALLOCATED TO DATE:
$400,000 (O &M City Tidelands), $100,000 (City CIP),
$2.4 million in federal funds, $2.0 million in additional
federal funds, $2.5 million contributed by the City of
Newport Beach for Phase I, $2.5 million contributed
by the City of Newport Beach for Phase II, and
approximately $1.2 million contributed by the
County for dredging in the County Tidelands.
AMOUNT SPENT TO DATE:
$400,000 for O &M Tidelands for sediment testing,
$4.4 million of federal funds to award contract, $5.0
million for City O &M Tidelands to award Phases I &
II, and $1.2 million for County Tidelands to dredge
Phases I & II.
STATUS TO DATE:
The dredging project was completed in February of
2013. In April, a small celebration was held at the
Newport Harbor Yacht Club to recognize the efforts
of all the parties that were a part of the project.
For more project information, visit the City's website
at newport beachca .gov /lowerbaydredgIng.
47
Marina Park
DEPARTMENT:
Public Works
PROJECT LEAD:
Dave Webb, Public Works Director
Iris Lee, Senior Civil Engineer
PROJECT START DATE:
2006
TARGET COMPLETION DATE:
Fall 2015
DESCRIPTION:
The Marina Park design plan proposes a new
marina which includes a 23 slip visiting vessel
marina, visitor side tie dock and floating docks
to support youth and adult sailing programs and
mooring support services, 12,700 square foot
sailing center building, 10,800 square foot com-
munity center building, new park with ameni-
ties including basketball half courts, tot lot and
playground, exercise circuit, walking paths and
beach area, new Girl Scout house and parking.
The Marina Park site is located on the bay side
of Newport Peninsula between 15th and 18th
Streets. The 10.4 acre site is owned by the City
and is currently being used for several purposes
including a 57 space mobile home park, Las
Arenas and Veterans Memorial Parks, Balboa
Community Center and parking lots, 18th Street
Sailing Base and leased space for a Girl Scouts
meeting facility.
FUNDING SOURCE:
General Fund -Major Facilities
TOTAL FUNDING REQUIRED FOR PROJECT:
$30,000,000
FUNDING ALLOCATED TO DATE:
$13,900,000
AMOUNT SPENT TO DATE:
$3,116,200
STATUS TO DATE:
With 2012's approval by the California Coastal
Commission (CCC) of the Marina Park project, staff is
currently working to obtain a Coastal Development
Permit (CDP) to move forward with final project
design. The design team is focused on the construction
document phase, which details the design
development plans for construction purposes. Various
value engineering measures were implemented to
reduce costs, while delivering a quality project.
On February 26, 2013, Griffin Structures was retained to
provide construction management services to oversee,
prepare and manage the construction phase of the
project.
On March 6, 2013, CCC approved the City's Coastal
Land Use Plan to allow for the project's 71 -foot
lighthouse design feature. The intent is to provide a
memorable iconic feature that will serve as a beacon
to park visitors on land and on water, while signifying the
rich nautical history of Newport Bay.
While the City is moving forward with the Marina Park
design, staff has also been working closely with the
Girl Scout Council of Orange County to incorporate its
design needs of the new Girl Scout House at the project
site. In the coming months, staff will work to obtain
the final issuance of the U.S. Army Corps of Engineers'
404 permit and the Coastal Commission's Coastal
Development Permit.
Our current schedule now estimates construction
starting in 2013, with completion in 2015.
Project information can be found online on the City's website
at newportbeachca.gov /marina park.
49
Newport Banning Ranch
DEPARTMENTS:
Community Development, Public Works, City
Attorney's Office, and City Manager's Office
PROJECT LEAD:
Patrick Alford, Planning Manager
PROJECT START DATE:
August 2008
TARGET COMPLETION DATE:
The project received all necessary approvals from
the City of Newport Beach on July 23, 2012; the
applicant must now secure project approval from
the California Coastal Commission.
DESCRIPTION:
Newport Banning Ranch is a 402.3 -acre planned
community proposed by Newport Banning Ranch,
LLC; a partnership formed by Aera Energy, Cherokee
Investment Partners, and Brooks Street. The project
would contain a maximum of 1,375 dwelling units,
75,000 square feet of retail commercial, a 75-
room "boutique" hotel, parks, and open space.
The site is generally bound to the north by Talbert
Nature Preserve /Regional Park (Costa Mesa); to
the south by West Coast Highway and the Newport
Shores Community; to the east by Newport Crest
Community, West Newport Mesa, and Westside
Costa Mesa; and to the west by a U.S. Army Corps of
Engineers wetlands restoration area and the Santa
Ana River. Approximately 40 acres of the site are
located within the incorporated boundary of the
City of Newport Beach; the remainder of the site is
within unincorporated Orange County, but within
the City of Newport Beach's adopted Sphere of
Influence.
FUNDING SOURCE:
General Fund (off -set by application fees)
TOTAL FUNDING REQUIRED FOR PROJECT:
$4 million (estimated)
FUNDING ALLOCATED TO DATE:
$3,807,000
AMOUNT SPENT TO DATE:
$3,703,210
STATUS TO DATE:
Newport Banning Ranch, LLC, submitted an
application for a coastal development permit to the
California Coastal Commission on February 1, 2013,
which is the next step in the entitlement process before
construction may begin. The application has been
deemed incomplete by the Coastal Commission staff.
Project information can be found online at
newportbeachca.gov/banningranch.
51
Park
Avenue
Bridge
Replacement
DEPARTMENTS:
Public Works Department
PROJECT LEAD:
Fong Tse, Principal Civil Engineer
PROJECT START DATE:
2009
TARGET COMPLETION DATE:
2016
DESCRIPTION:
The Park Avenue Bridge Replacement project was
initiated by the City in 2009 to replace the existing
bridge over the Grand Canal which connects Big
Balboa Island to Little Balboa Island. The existing
bridge was constructed in 1928 and was modified
and added ADA access ramps in 1984. The existing
bridge is a concrete 5 -span bridge with 5- column
pile bents and abutments adjacent to the existing
seawalls. As part of its bi- annual bridge inspection
program, the State of California Department of
Transportation (Caltrans) classified this bridge as
functionally obsolete and it has been included
in the Federal Highway Bridge Program (HBP) for
rehabilitation or replacement.
The City retained RBF Consulting Engineers to
provide preliminary engineering and conceptual
design services. Following community meetings,
RBF has completed final concept plans. Since this
project is located within the coastal zone, a Coastal
Development Permit will be required from the
California Coastal Commission. An amendment to
the contract with RBPfor environmental, permitting
and final engineering phases will be prepared.
Staff is estimating approximately 24 - 30 months to
complete the environmental, permitting and final
engineering phases and anticipates going out for
bids and the start of construction in Fall 2015.
FUNDING SOURCE:
Federal Highway Bridge Program
TOTAL FUNDING REQUIRED FOR PROJECT:
$3 Million
FUNDING ALLOCATED TO DATE:
$240,000
AMOUNT SPENT TO DATE:
$100,000
STATUS TO DATE:
The preliminary engineering phase of the project is
nearing completion. Conceptual plans were prepared
by the City's consulting engineer and staff presented
plans and renderings at the Balboa Island community
meeting on March 16, 2013 and Little Balboa Island
membership meeting on April 20, 2013 as well as
other meetings with island residents. During the next
quarter, staff is preparing to initiate the environmental,
permitting and final engineering phases of the project.
53
Relinquishment of Newport Boulevard
Relinquishment of Newport Blvd
DEPARTMENT:
Public Works Department
PROJECT LEAD:
Dave Webb, Public Works Director
PROJECT START DATE:
2008
TARGET COMPLETION DATE:
December 2013
DESCRIPTION:
The goal of this project is to initiate a long -range
planning process for the City to eventually control
the 0.17 mile segment of Newport Boulevard
between Finley Street and the West Channel
Bridge in an effort the improve coordination
of vehicle and bicycle traffic on and off the
Balboa Peninsula, as well as provide enhanced
landscape improvements on Newport Boulevard
through Lido Village. The City has initiated the
relinquishment process to acquire ownership of
the necessary State right -of -way which is a multi-
step process that involves passing appropriate
legislation, State review of the facility for possible
relinquishment, preparation of a report on the
facilities and development of an offer for the City
to acquire the facilities, City accepting the offer
or submitting a counter offer, and then having
the State prepare the necessary right -of -way
and design reports and process them through
the California Transportation Commission.The
relinquishment process is a generally defined
process and schedule that the State needs to
complete in order to relinquish the facilities to the
City.
FUNDING SOURCE:
No funding is necessary to acquire this segment of
roadway from the State other than the cost of staff
time to process the item.
TOTAL FUNDING REQUIRED FOR PROJECT:
To be determined
FUNDING ALLOCATED TO DATE:
None
AMOUNT SPENT TO DATE:
None other than staff time
STATUS TO DATE:
The State informed the City in April 2012 that they
no longer had any relinquishment funding available
to pay the agreed upon $20,000 fee. In an effort
to keep the process moving forward, City staff
negotiated with Caltrans to have at least $20,000
in needed signal upgrades completed on the
Finley Avenue and Via Lido signals, in lieu of the
relinquishment cash payment. This work is currently
being identified and programmed to allow the State
to meet its obligation.
The City Council approved the relinquishment
agreement on February 26, 2013 in anticipation
of a finalized resolution from the Department
of Transportation in May of 2013. The California
Transportation Commission took action on May 7,
2013 and has now officially relinquished the 0.17
mile segment of Newport Boulevard (State Route
55) from Finley Avenue to the Newport Channel
Bridge to the City. The City now has all authority
over the operation and maintenance of this street
and is currently working to coordinate the signals at
Finley Street and Via Lido into the City traffic signal
network.
55
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Sunset Ridge Park
DEPARTMENT:
Public Works Department
PROJECT LEAD:
Andy Tran, Senior Civil Engineer
PROJECT START DATE:
August 2007
TARGET COMPLETION DATE:
Spring 2014
DESCRIPTION:
The proposed 13.7 acre Sunset Ridge Park is
situated on the northwest corner of West Coast
Highway and Superior Avenue in West Newport
Beach. Sunset Ridge Park is planned to be an
active park per the City's General Plan with
amenities including Pony League baseball field,
soccer fields, children's tot lot area, restrooms,
butterfly garden, shaded viewpoint, walkways,
walls, and landscaping.
FUNDING SOURCE:
General Fund and Park -in -lieu
TOTAL FUNDING REQUIRED FOR
PROJECT:
$12 million"
FUNDING ALLOCATED TO DATE:
$11.2 million'
AMOUNT SPENT TO DATE:
$2.6 million'
`Not including cost of land purchased from
Caltrans for $5.2 million.
STATUS TO DATE:
At its August 9, 2012 meeting, the California Coastal
Commission (CCC) approved the Coastal Development
Permit (CDP) application with special conditions
despite CCC staff's recommendation of denial. Since
the approval, staff has been continuously working with
CCC staff, revising the final construction documents
and preparing various biological reports as indicated in
the special conditions of the CDP. On March 27, 2012,
CCC staff issued a Notice of Intent to Issue Permit. Since
CCC staff originally recommended denial of this CDP,
the project findings need to be significantly revised
and brought back to a future coastal hearing which is
tentatively scheduled for June 2013.
Construction is anticipated to begin in Fall of 2013 with
an estimated project completion by Summer of 2014.
This timeline is largely dependent on receiving timely
reviews from CCC and the issuance of the permit.
Project information is available on the City's website at
newportbeachca .gov /sunsetridgepark.
57
Updating Harbor Charges
Updating Harbor Charges
DEPARTMENT:
City Manager's Office
City Attorney's Office
Public Works Department
PROJECT LEAD:
Rob Houston, Assistant to the City Manager
Michael Torres, Assistant City Attorney
Chris Miller, Harbor Resources Manager
PROJECT START DATE:
September 2010
TARGET COMPLETION DATE:
Fall 2013
DESCRIPTION:
Over the past few years, the City of Newport Beach
has reviewed its administration of public tidelands
property within Newport Harbor. As a result of this
comprehensive review, the City adopted new permit
and lease templates and adjusted commercial and
noncommercial tidelands rent to fair market value
(over 3, 5, or 8 periods). The adjustment of tidelands
rental rates to fair market value avoids a violation
of the Beacon Bay Bill (the 1978 legislative grant
from the State, as amended), California Constitution
Article 16, Section 6, Newport Beach Municipal Code
Title 17, and City Council Policy F -7.
The City completed its review of each user group
as follows: (1) moorings (completed Fall 2010);
(2) Balboa Yacht Basin (completed Fall 2010); (3)
commercial piers (completed November 2012); and
(4) noncommercial piers (completed December
2012).). These fees contribute to harbor projects
such as dredging and the provision of additional
harbor amenities.
FUNDING SOURCE:
General Fund and Tidelands Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
None other than stafff time
FUNDING ALLOCATED TO DATE:
None other than staff time
STATUS TO DATE:
During this quarter, the City Council amended
various sections of the Newport Beach Municipal
Code related to commercial and non - commercial
(residential) tidelands uses, and amended the
Master Fee Resolution to eliminate the annual
non - commercial pier inspection fee and establish
a subsidized appeal fee for tidelands permits and
leases. The Council also directed staff to seek the
consent of the State Lands Commission to create
a Newport Harbor Capital Fund (" Harbor Fund")
which will capture the incremental increases
from the recent tidelands rent adjustments (e.g.
moorings, commercial and non - commercial
piers, Balboa Yacht Basin, etc.) The Harbor Fund
will finance future capital improvements and
maintenance activities within Newport Harbor.
More information is available online at
newportbeachca.gov/harborrenters.
59
West Newport Beach
Facility Planning
DEPARTMENTS:
City Manager's Office, Public Works and Finance
PROJECT LEAD:
Steve Badum, Assistant City Manager
Dave Kiff, City Manager
Dave Webb, Public Works Director
Dan Matusiewicz, Finance Director
PROJECT START DATE:
April 2011
TARGET COMPLETION DATE:
On -going
DESCRIPTION:
Most of the City's public buildings and facilities
on the west side of the city are reaching the
end of their service life and are in need of major
refurbishment or replacement. In 2006, the City
developed a comprehensive citywide Facilities
Financing Plan as a tool to identify, forecast and
fund the refurbishment and /or replacement of
numerous City owned facilities including police
and fire stations, libraries, community and senior
centers, services yards and parks. With the
upcoming relocation of City Hall to the new Civic
Center Complex, discussions have and continue
to take place as to how best to reconstruct the
remaining facilities to meet current and future
community needs.
The West Newport Beach Facility Planning
process will include building upon the current
efforts to redevelop the existing City Hall site
and develop conceptual plans and alternatives
to provide: consolidated maintenance and
operations facilities; replacement and potentially
relocated community center facilities and fire
stations; replacement of the existing Lifeguard
Headquarters building with smaller, more efficient
facilities located at Newport and Balboa Piers; as
well as continuing discussions regarding the future
of various other City facilities, particularly those
located on the western side of the Newport Bay.
FUNDING SOURCE:
General Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
To be determined
FUNDING ALLOCATED TO DATE:
$75,000
AMOUNT SPENT TO DATE:
$75,000
STATUS TO DATE:
There has been no advancement since the last report
as staff continues to concentrate efforts on finishing the
Civic Center and Park project, the initiation of the City
Hall re -use, and obtaining final Coastal Commission
approval of Marina Park and Sunset Ridge Park. We
expect some progress during the next quarter.
61
Widen Jamboree Road
in the Airport Area
Widen Jamboree Road
in the Airport Area
DEPARTMENT:
Public Works
PROJECT LEAD:
Andy Tran, Senior Civil Engineer
PROJECT START DATE:
January 2005
TARGET COMPLETION DATE:
Spring 2013
DESCRIPTION:
This two -phase project involves widening the
Jamboree Road Bridge over the SR73 Freeway by
22 feet to the west (Phase 1); and then widening
Jamboree Road at the intersection of MacArthur
Boulevard between Bristol Street North and Fairchild
Road (Phase 2) in an effort to reduce projected
traffic congestion and delay.
Phase 1 of the bridge widening project creates one
additional northbound and southbound thru lane on
Jamboree Road between MacArthur Boulevard and
Bristol Street South. This project required developing
a design and obtaining approval and a permit from
Caltrans for overcrossing the SR73 Freeway which
is owned by the state. Additionally, the project
required negotiations and purchase of three pieces
of private property as well as successful funding of
several Orange County Transportation Authority
(OCTA) grants.
Phase 2 of the Jamboree Road Improvements will
provide one additional northbound lane through
the MacArthur Boulevard intersection, as well as an
additional left turn lane from southbound Jamboree
Road onto eastbound MacArthur Boulevard. This
phase also involves negotiations and voluntary
purchase of three pieces of private property within
the City of Irvine, as well as obtaining several OCTA
grants.
The City of Irvine is currently administering a
separate joint pavement rehabilitation project on
Jamboree Road between MacArthur and Campus
Construction of this project will start upon completion
of both phases.
NG SOURCE:
Transportation and Circulation, IBC Settlement,
Measure M Turnback, and Measure M Competitive
TOTAL FUNDING REQUIRED FOR PROJECT:
$9.2 million
FUNDING ALLOCATED TO DATE:
$10 million
AMOUNT SPENT TO DATE:
$9.2 million
STATUS TO DATE:
On March 8, 2011, the Jamboree Road Bridge
Widening Project (Phase 1) was awarded for
construction by City Council. Construction began
in May 2011 and was substantially completed in
October 2012, City Council accepted the contract
on November 27. 2012.
The construction contract for Phase 2 was awarded
by the City Council on September 25, 2012 and
is now substantially complete. City council
accepted this contract as final on March 26, 2013.
63