HomeMy WebLinkAbout12 - QBR Staff ReportQ aEW PpaT
CITY OF
NEWPORT BEACH
0
�aN'P City Council Staff Report
Agenda Item No. 12
December 10, 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: Cpl
TITLE: Quarterly Business Report — April through September 2013
ABSTRACT:
The City Manager's Quarterly Business Report provides the City Council and
community members with a regular update of City business that includes financial
information, updates from several of the City's Boards, Commissions, and Committees
and reports on current, key projects.
RECOMMENDATION:
Review and file.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
DISCUSSION:
The City Manager's 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 April through September 2013. Since additional time was
needed to close the fourth quarter of Fiscal Year 2012 -13, the attached QBR includes
information covering the fourth quarter (April through June) of Fiscal Year 2012 -13 and
the first quarter (July through September) of Fiscal Year 2013 -14.
The QBR is divided into three sections which includes information on 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.
Quarterly Business Report — April through September 2013
December 10, 2013
Page 2
The QBR is available on the City's website (newportbeachca.govlgbr) and a printed
copy is on file at the Central Library.
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:
dk
Mary Locey
Public Information Sp cialist
Attachment: A. Quarterly Business Report — April through September 2013
w
Lf
ly
!L4a, -s,
Al
J. 7
Attachment A
NBC ram
i aano
� u■
z IWELIOMC l`O
TO
BA,LBOk
,i
Published by the City of Newport Beach
December 5, 2013
newportbeachca.gov /qbr
Cover photos courtesy of
Newport Beach & Company
TABLE OF CONTENTS
QUARTER 4 Fiscal Year 2012 -13
1 Executive Summary
2 Fiscal Health Dashboard
3 Economic Overview
4 Strong Underlying Tax Base
7 City Reserves
QUARTER I Fiscal Year 2013 -14
13 Executive Summary
14 Economic Update
15 Top "Y Revenues
21 Board of Library Trustees
22 Building & Fire Board of Appeals
23 City Arts Commission
24 Civil Service Board
25 Harbor Commission
26 Parks, Beaches & Recreation Commission
27 Planning Commission
28 Finance Committee
29 Balboa Village Advisory Committee
30 Bicycle Master Plan Oversight Committee
31 Environmental Quality Affairs Committee
32 Newport Coast Advisory Committee
33 Water Quality /Coastal Tidelands Committee
34 Aviation Committee
35 General Plan /Local Coastal Program
Implementation Committee
36 July 4th West Newport Safety Planning Committee
37 Tidelands Management Committee
40 Balboa Boulevard Beautification
42 Corona del Mar Water Transmission Main
44 Fire Rings
46 Group Residential Uses
48 Implement Traffic Management Plan
50 Lido House Hotel (Former City Hall Site)
52 Marina Park
54 Newport Banning Ranch
56 Park Avenue Bridge Replacement
58 Sunset Ridge Park
60 Updating Harbor Charges
62 West Newport Beach Facility Planning
Financial Report
city of newport beach I finance department
newportbeach ca. gov 1 949.644.3127
quarter ending june 30, 2013
EXECUTIVE SUMMARY AND YEAR -END FINANCIAL HEALTH DASHBOARD
Newport Beach continues to be a financially secure municipality due to its strong underlying tax
base, governance, and disciplined fiscal decisions. City management continued to focus on the City
Council's priorities including responsible, yet difficult, spending decisions, adherence to the 15 Point Fiscal
Sustainability Plan, and strong revenue monitoring, analysis, and reporting in FY 2012 -13. (As a result, the
sum of all available and discretionary reserves totals $128.9 million at the end of FY 2012 -13.)
The combination of higher revenues and lower expenditures than budgeted resulted in $26.6 million
of income before transfers in the General Fund. Of this amount, $25.3 million was transferred out to
other funds. This includes $9.3 million for routine purposes including the annual funding of the Facilities
Financial Planning (FFP) Reserve ($4.7 million) and the annual subsidy of the Tidelands Fund ($4.6 million).
A total of $16 million was transferred out to other funds in furtherance of Council priorities including $9.5
million for community serving facilities, $2.5 million for information technology, $1 million for emergency
communications and more. Even after these sizable transfers, the General Fund balance increased
$1.3 million. The net result of higher than expected revenues, lower than expected expenditures and
other changes in fund balance, resulted in a $12 million increase to the unassigned or "surplus" portion
of General fund balance (see the General Fund Reserves panel in the Fiscal Health Dashboard on the
following page). The unassigned "surplus" portion of fund balance now totals $32.6 million at the end of
FY 2012 -13 not including the City's contingency reserve of $22.1 million and a pension reserve of $5 million.
Reserves are an important component of the City's financial flexibility to react to unexpected economic
events. However, with discretionary reserves at an all time high, management will bring forward several
recommendations for the City Council to rebalance resources in alignment with City Council policies,
priorities, and goals. As part the FY 2013 -14 mid -year budget review and amendment, management will
be recommending actions to further improve community serving facilities, emergency communications
infrastructure, and information technology, and other strategic initiatives to enhance the long -term
financial well being of the City. The recommendations will be subject to City Council review.
The City of Newport Beach Finance Department prepares quarterly financial reports for the City Council
to review the status of revenues and expenditures for the City's most active funds. This report contains
information on resources and expenditures for the fourth quarter of the fiscal year, which is the period
between April 1, 2013, and June 30, 2013. The City's major General Fund revenue categories performed
above its projected levels for this year due to the improving economy and the receipt of certain one-
time revenues. Expenditures performed within expected levels and ended the year with an unexpended
balance. This report also provides a year -end status of some of the City's major reserves. The continued
health of key reserves lays the groundwork for additional community infrastructure investment and a
stronger City government.
The financial health dashboard on the following page provides a balanced picture of the City's financial
performance at year -end.
Financial Health Dashboard
General Fund Reserves (in millions)
Non - Spendable $7.7 $9.9 $2.2
Restricted $2.3 $3.4 $1.1
Committed $29.8 $28.4 -$1.4
Assigned $19.4 $6.8 -$12.6
Unassigned "Surplus" $20.6 $32.6 $12.0
TOTAL $79.8 $81.1 $1.3
.0
The positive underlying economic factors in Newport Beach in
recent years has allowed for the accumulation of General Fund
reserves at the end of FY 12 -13 in the amount of $81.1 million, an
increase of $1.3 million from the prior year. The non - spendable and
restricted categories of fund balance are for resources that are not
in spendable form or are legally or contractually required to remain
intact. The committed and assigned portion of fund balance includes
amounts that are constrained by the City's intent to be used for
specific purposes but are still within the City's full discretion. The
unassigned category is the residual portion of available fund
balance that is not otherwise restricted, committed or assigned.
Due to the $12 million year- over -year growth in unassigned
"surplus" fund balance, the City Council will have the opportunity to
establish additional assignments in furtherance of strategic
initiatives as part of the FY 13 -14 Mid -Year Budget process.
{ 750
no
$163.10 $170.50 $7.3
Why is this impor
Revenues were $7.3 million higher than budgeted due to the
N
growing strength of the economy resulting in higher
property, sales, and transient occupancy taxes.
General Fund Expenditures (in millions)
1 ®�
$151.50 $143.60 ($7.6)
Why is this important?
Expenditures were $7.6 million lowerthan budget due to the
effective management of operating expenditures, control of
labor costs (especially overtime), and outsourcing (such as
parking lot administration and printing services).
Total Available Reserves 2 $128.9
Moody's Aaa Highest Quality
S&P AAA Highest Quality
Fitch AAA Highest Quality
Reserves represent the cumulative difference of all
revenues and expenditures resulting from the
government's operational activities. Sufficient reserves
provide a government with available resources in the event
of unforeseeable occurrences, budget variances or for cash
flow purposes. Municipal governments are subject to a
number of risks, often of highly uncertain probability and
magnitude, that require them to maintain reserves. The
maintenance of stable reserves is a particularly important
factor considered by rating agencies in their evaluation of
the creditworthiness of local government debt. In
determining credit risk, investors rely heavily on the credit
rating issued by the rating agencies Fitch, Moody's, and
Standard & Poor's. When assigning a rating for general
obligation bonds, these agencies assess a government
entity's economic /financial condition, debt structure,
demography, and management practices.
RD
RD 0
01
.0
no
L 780
� MQ',
{ 750
no
N
The City has successfully pursued a number of strategies to
drive the trajectory of future employee salary and benefit
costs downward. 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 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.
1 Preliminary and unaudited.
2 Excludes non - spendable and restricted reserve funds-
3 The implied "AAA" general obligation rating signifies an extremely strong capacity to meet financial commitments - it is the
highest rating.
Z
Economic Overview
Throughout the fiscal year, the yield on two -year treasury notes remained under 0.35 %. The policy
of the Federal Reserve (Fed) has been to keep short-term rates at record lows until unemployment
reaches 6.5% and inflation is under 2.0 %. Comments from Fed Chairman Ben Bernanke at a
congressional hearing in May indicated the Fed could begin reducing bond purchases in 2014. These
statements, coupled with the recent market rally in equities, have made bonds less appealing to
prospective buyers, thereby, driving yields up in recent months. This caused fixed income portfolios to
decline in value during May and June as interest rates rose across the yield curve.
While the higher interest rate environment temporarily lowers the market value of the portfolio, it also
signifies that new investments may result in higher yields than the previous fiscal year.
Consumer confidence increased in June for a third consecutive month. The Conference Board
Consumer Confidence Index stood at 81.4 in June, up from 74.3 in May. According to Lynn Franco,
Director of Economic Indicators at the Conference Board, consumer confidence is "now at its highest
level since January 2008." Households' propensity to keep spending suggests the economy should
strengthen later in 2013. Consumer spending, which accounts for more than two- thirds of the total
demand in the U.S., was the overwhelming driver of growth early this year.
California's economic picture is brighter than that of the national economy. This is due largely to the
demand for California goods, such as computers and other technology, according to the recently
released UCLA Anderson Forecast. California outperformed the U.S. in the rate of payroll jobs growth
in the 12 -month period that ended in April 2013. Only Utah has added jobs faster than California.
California's job growth has been spread across several industries, including leisure and hospitality
and white - collar jobs in the professional and business services sector. The UCLA forecast projects that
California's unemployment rate will drop to 8.8% by the end of this year and fall to 7.7% by the end of
2014. The pace of job growth is expected to speed up to 2.2% in 2015, further pushing down the jobless
rate to 6.8% by the end of that year.
Historical Unemployment Rates
14.0
12.0%
lo.o^
SAM
6.0%
z.oi
IM,
0.0%
�Sacpoa Dcach
��Onuge County
•�Califomia
eo
—�
2006 2007 2008 2009 2010 2011
Orange County's economy is expanding,
and the near -term outlook "warrants
growing optimism," according to the
midyear update of the Los Angeles County
Economic Development Corporation's
( LAEDC) 2013 -2014 Economic Forecast
and Industry Outlook released in July.
Over the first half of 2013, the county's
economic expansion has continued to
outpace that of both the nation and the
state. The county's unemployment rate,
20Z 12 20132013- which peaked at 9.5% in 2010, and fell as
Calendar Year • oh�ough 0a. 31, 2013 low as 6% in May 2013, is one of the lowest
rates in California as reported by the State
Employment Development Department. The LAEDC predicts that this trend will continue, with the
unemployment rate averaging 5.57. this year before falling to 5.2% in 2014. In addition, the Cal State
Fullerton's Southern California Leading Indicator, which forecasts economic activity three to six months
out, rose to 109.74 for the first quarter of the year, up 3.5% over the same time last year.
Note: As we prepare this QFR, we are cognizant of threats on the horizon outside of this 4th Quarter,
These include the Sequester, the possibility of the federal government not passing a budget, and the
approach of the federal government's debt ceiling limit. These issues may have significant impact on
the local, state, and national economy.
R1
Strong Underlying Tax Base
The General Fund's top three revenue sources (Property Tax, Sales Tax, and Transient Occupancy
Taxes) account for approximately 73.4% of General Fund revenues and finished the fiscal year $5.4
million or 4.5% higher than projected and just under $13 million, or 11.5% higher than the previous year.
This increase is largely due to a generally improving economy, higher property tax valuations within the
City, and a greater level of travel and tourism within the region.
PROPERTY TAX
Property tax is the top source of revenue for the City of Newport Beach, representing almost half
(48 %) of all General Fund revenues. Sales data demonstrates the sustained climb in 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 June Q2 2012 and June Q2 2013. The number
of sales between the some periods has decreased slightly, but has increased sharply from the previous
quarter. Local agents say the some factors that have propelled the market since the start of the year
were at work in the last quarter: low mortgage interest rates, strong demand, stiff competition from
cash - paying investors, and relatively few homes for sale.
City of Newport Beach Home Sales History
Single Family Residential Full Value Sales (01/01/2003- 06/30/2013)
d
a`
d
U)
U)
d
■ Sales — Median Price
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
500
400
300
m
m
w
200
100
Period Source: Hal- Companies
Property tax collections finished the fiscal year nearly $10.1 million or 14% higher than the previous fiscal
year. This is due to increases in assessed property values and a one time $5.4 million payment resulting
from the State's recent actions to dissolve redevelopment agencies. Newport Beach posted Orange
County's highest increase in assessed property values at 5.2% and came in second in total local
assessed value at $42.3 billion for FY 2013 -14. Excluding the one time $5.4 million payment, property
tax collections finished the year $4.6 million higher than the previous fiscal year, yet remain below the
median price peak realized in 2007.
Property Taxes
Secured
Unsecured
Prior Year Penalties & Interest
Supplemental 1
In Lieu of VLF
RDA Dissolution 2
All Other
TOTAL
'During fiscal year 2011 -2012 the County Assessors' Office was unable to deliver the Supplemental Roll information to the Treasurer Tax Collector
as planned due to a system conversion. The shortfall was recovered in fiscal year 2012 -2013 resulting in the 117.72% increase from the prior year.
3 2012 -13 actual includes a one -time $5.4 million receipt resulting from the State's dissolution of redevelopment agencies.
SALES TAXES
Sales Tax revenue continues to trend
upwards, finishing $1.2 million or 4.6%
higher than the prior fiscal year.
While much improved, sales tax receipts
remain approximately $328,000 below the
pre- recession levels of FY 2006 -07. The
City's sales tax base is generated from a
relatively diverse business community and
is not dependent on any one merchant
or industry. The largest segment, "Autos
and Transportation," accounts for
approximately 31% of total sales tax; the
next largest segment "General Consumer
Goods" accounts for approximately 27%
of total sales tax; and the third largest
segment "Restaurants and Hotels"
accounts for approximately 24% of
total sales tax revenue. The Autos and
Transportation, General Consumer Goods,
and Restaurant and Hotels categories
posted increases of 0.3 %, 0.7 %, and 5.7%
respectively over the prior year.
Sales Taxes
Percent of Total for 2nd Quarter
E
Food
and
Building
and
Amended
Budget
2012/13
General
Source: HdL Companies Consumer
Goods
Year -over-
year
YTD Actual Prior Year YTD Increase/
2012/13 Actual 2011/12 Decrease
Sales and Use Tax $21,102,543 $20,764,205 $20,107,596 3.27%
Property Tax in Lieu of Sales Tax 7,078,517 7,078,517 6,523,492 8.51%
TOTAL $28.181.060 $27.842.722 $26.631.088 4.55%
Autos
and
Transportation
Percent
of 12/13
Budget
Realized
98%
5
Year -over-
Percent
Amended
Prior Year
year
of 12/13
Budget
YTD Actual
YTD Actual
Increase/
Budget
2012/13
2012113
2011112
Decrease
Realized
$61,424,455
$61,541,104
$58,551,933
5.11%
100%
2,266,203
2,291,127
2,457,246
-6.76%
101%
1,200,000
1,202,011
1,275,360
-5.75%
100%
600,000
879,359
403,890
117.72%
147%
6,965,878
7,019,219
6,775,936
3.59%
101%
2,756,357
6,184,099
219,795
2713.57%
224%
'During fiscal year 2011 -2012 the County Assessors' Office was unable to deliver the Supplemental Roll information to the Treasurer Tax Collector
as planned due to a system conversion. The shortfall was recovered in fiscal year 2012 -2013 resulting in the 117.72% increase from the prior year.
3 2012 -13 actual includes a one -time $5.4 million receipt resulting from the State's dissolution of redevelopment agencies.
SALES TAXES
Sales Tax revenue continues to trend
upwards, finishing $1.2 million or 4.6%
higher than the prior fiscal year.
While much improved, sales tax receipts
remain approximately $328,000 below the
pre- recession levels of FY 2006 -07. The
City's sales tax base is generated from a
relatively diverse business community and
is not dependent on any one merchant
or industry. The largest segment, "Autos
and Transportation," accounts for
approximately 31% of total sales tax; the
next largest segment "General Consumer
Goods" accounts for approximately 27%
of total sales tax; and the third largest
segment "Restaurants and Hotels"
accounts for approximately 24% of
total sales tax revenue. The Autos and
Transportation, General Consumer Goods,
and Restaurant and Hotels categories
posted increases of 0.3 %, 0.7 %, and 5.7%
respectively over the prior year.
Sales Taxes
Percent of Total for 2nd Quarter
E
Food
and
Building
and
Amended
Budget
2012/13
General
Source: HdL Companies Consumer
Goods
Year -over-
year
YTD Actual Prior Year YTD Increase/
2012/13 Actual 2011/12 Decrease
Sales and Use Tax $21,102,543 $20,764,205 $20,107,596 3.27%
Property Tax in Lieu of Sales Tax 7,078,517 7,078,517 6,523,492 8.51%
TOTAL $28.181.060 $27.842.722 $26.631.088 4.55%
Autos
and
Transportation
Percent
of 12/13
Budget
Realized
98%
5
TRANSIENT OCCUPANCY TAXES
Transient Occupancy Tax (TOT) collections increased $1.7 million or 11.5% over the prior year. This is
the net result of a $205,000 increase in residential transient tax collections and a $1.5 million increase
in hotel transient tax collections. Of the City's larger hotels, the Resort at Pelican Hill, all three
Marriott branded accommodations, and the Fairmont Hotel generated the largest increases to TOT
collections. All but three of the City's 20 hotels and inns experienced an increase in TOT revenue over
the prior year.
Excluding the Resort at Pelican Hill remittances, which opened at the height of the recession, TOT
revenues have exceeded the pre- recession levels of FY 06/07 by $479,000.
Transient Occupancy Taxes
Occupancy Rates Rising in Orange County Hotels
According to the industry research firm PKF Consulting, hotels in Orange County saw a surge in
bookings this spring, with occupancy rates at 77.6 percent in April, up from 74.1 percent a year ago.
Costa Mesa had the fewest rooms available, with an April occupancy rate of 81.1 percent, up from
74 percent in April 2012. Anaheim, which has seen a resurgence in visitors since Disney California
Adventure's new Cars Land opened in June, was second with 79.2 percent of the city's hotel
rooms occupied - an increase from 75.2 percent last year. Orange County's most expensive hotels
were particularly busy in April, marking a comeback after suffering steep drops in visitors during the
recession. Occupancy in hotels with rooms costing more than $200 a night jumped to 82.8 percent
in April, from 71.3 percent a year ago. According to cvent.com, Newport Beach's occupancy rate is
76.9 %.
Source: Orange County Register, June 25, 2013
Year -over-
Percent
Amended
year
of 12/13
Budget
YTD Actual
Prior Year YTD Increase/
Budget
2012/13
2012/13
Actual 2011112 Decrease
Realized
Transient Occupancy Taxes $15,311,500
$16,500,285
$14,798,191 11.50%
108%
Occupancy Rates Rising in Orange County Hotels
According to the industry research firm PKF Consulting, hotels in Orange County saw a surge in
bookings this spring, with occupancy rates at 77.6 percent in April, up from 74.1 percent a year ago.
Costa Mesa had the fewest rooms available, with an April occupancy rate of 81.1 percent, up from
74 percent in April 2012. Anaheim, which has seen a resurgence in visitors since Disney California
Adventure's new Cars Land opened in June, was second with 79.2 percent of the city's hotel
rooms occupied - an increase from 75.2 percent last year. Orange County's most expensive hotels
were particularly busy in April, marking a comeback after suffering steep drops in visitors during the
recession. Occupancy in hotels with rooms costing more than $200 a night jumped to 82.8 percent
in April, from 71.3 percent a year ago. According to cvent.com, Newport Beach's occupancy rate is
76.9 %.
Source: Orange County Register, June 25, 2013
City Reserves
A PRODUCT OF DISCIPLINED FISCAL POLICY AND A FINANCIALLY PROSPEROUS COMMUNITY
The City accumulates financial reserves to provide stability and flexibility to respond to unexpected
adversity and /or opportunities. The recovering economy and the Council's guidance in recent years
provides us with the opportunity to maintain reserve levels that are in furtherance of the City's policies,
goals, and priorities. The continued health of the following key reserves lays the groundwork for even
greater community infrastructure investment and a stronger City government.
GENERAL FUND COMPARATIVE INCOME
STATEMENT
The City's General Fund is the primary fund
used to account for the City's general purpose
revenues such as sales, property, utility users
and transient occupancy taxes. General Fund
revenues typically pay for citywide services
such as public safety, community development,
recreation, libraries and parks. The General
Fund is distinguished from Special Revenue
Funds in that the latter are used to account for
revenues that have restricted uses (e.g. gas tax
funds that must be used for street maintenance
or repair). The General Fund Comparative
Income Statement presents information that
allows readers to compare actual revenues and
expenditures and any surplus or deficit for the
fiscal years ending June 30, 2012 and June 30,
2013. The City Council establishes a balanced
budget (expenditures must equal revenues) at
the beginning of every fiscal year.
General Fund revenue receipts increased
$14.3 million, or 9.2 %, from the prior year and
were $7.3 million, or 4.5 %, higher than the FY
12/13 Amended Budget due to growth in
the City's top 3 revenue sources, particularly
property tax revenue and the receipt of one-
time revenues (see property tax discussion on
page 4). General Fund expenditures increased
$7.3 million, or 5.8 %, from the prior year and
were $7.6 million, or 5 %, less than the FY 12/13
Amended Budget.
The combination of actual revenues receipts
being 4.5% higher and expenditures being 5%
lower than the amended budget has resulted in
a $1.3 million, or 1.7 %, increase in General Fund
Balance. Of this surplus amount, $25.3 million was
transferred out to other funds. This includes $9.3
million for routine purposes including the annual
funding of the Facilities Financial Planning (FFP)
Reserve ($4.7 million) and the annual subsidy
of the Tidelands Fund ($4.6 million). A total of
$16 million was transferred out to other funds
in furtherance of Council priorities including
$9.5 million for community serving facilities, $2.5
million for information technology, $1 million for
emergency communications and more. Even
after these sizable transfers, the General Fund
fund balance increased $1.3 million.
General Fund Comparative Income Statement
11,817,861
12,561,900
744,039
6.30%
Public Safety
67,415,971
Preliminary 8
5,298,615
7.86%
Public Works
25,953,473
Unaudited
$
%
Community Development
2012
2013
Change
Change
General Fund Revenues:
17,731;921
17,285,605
(446,316)
-2.52%
Property Taxes $
71,546,249
$ 81,603,194
$ 10,056,945
14.06%
Sales Taxes
20,107,597
20,764,205
656,608
3.27%
Sales Taxes In Lieu
6,523,492
7,078,517
555,025
8.51%
TOT Taxes
14,798,191
16,500,284
1,702,093
11.50%
All other Revenues
43,124,928
44,462,020
1,337,092
3.10%
Total Revenues
156,100,457
170,408,220
14,307,763
9.17%
General Fund Expenditures
General Government
11,817,861
12,561,900
744,039
6.30%
Public Safety
67,415,971
72,714,586
5,298,615
7.86%
Public Works
25,953,473
26,977,969
1,024,496
3.95%
Community Development
8,798,193
8,878,665
80,472
0.91%
Community Services
17,731;921
17,285,605
(446,316)
-2.52%
Capital outlay
3,827,132
5,235,786
1,408,654
36.81%
Debt Service
979,590
180,426
(799,164)
- 81.58%
Total Expenditures
136,524,141
143,834,937
7,310,796
5.77%
Income before transfers & other sources
19,576,316
26,573,283
6,996,967
35.74%
Other Financing Sources (Uses)
Transfers in
4,842,263
89,297
(4,752,966)
- 98.16%
Transfers out
(7,395,066)
(25,344,753)
(17,949,687)
242.73%
Total other financing sources (uses)
(2,552,803)
(25,255,456)
(22,702,653)
128.57%
Net Change in Fund Balance
17,023,513
1,317,827
(15,705,686)
- 92.26%
Fund Balance, beginning
62,768,845
79,792,358
17,023,513
27.12%
Fund Balance, ending
$ 79,792,358
$ 81,110,185
$ 1,317,827
1.657.
Did government grow in FY 2013?
Not in terms of personnel. Expenditures in FY 2012 -13 increased from the prior year as the result of
a focus on programs and activities that support a high quality physical environment, community
safety and investments in information technology. With the improving economy and the associated
uptick in revenues, the City resumed its ongoing commitment to improve the quality of streets,
sidewalks, alleys, and other infrastructure through the increase in Public Works expenditures and
capital outlay. Increased expenditures from the prior year were also the result of negotiated
bargaining unit increases in salary and benefits. Transfers out of the General Fund increased from
the prior year largely as the result of dedicating over $13 million to the Facilities Financial Planning
Reserve to provide for community serving facilities such as Marina Park, Sunset Ridge Park, Lifeguard
Headquarters, and the Corona del Mar Fire Station. The remaining $11.6 million transferred out to
other funds was in support of IT strategic investments, maintaining City equipment, tidelands, and
other City operations.
0
GENERAL FUND RESERVES
This section provides balances of the City's General Fund Reserves at the end of FY 2012 -13. This
information is useful in assessing the City's net resources available for spending at the end of the
fiscal year. Contributions to the reserve are established by prudent fiscal policies and as part of
the annual budget process, or as conditions change. At the end of the FY 2012 -13, the City's
General Fund Reserves total $81.1 million. See the narrative in the Financial Health Dashboard at
the beginning of this report to understand significance of various reserve categories.
General Fund Reserves
Non - spendable
Restricted
Committed
Contingency Reserve
Recreation Reserves
Parking Reserves
Cable Franchise
Other Miscellaneous
Subtotal Committed
Assigned
Capital Reappropriations
PIERS Rate Reserve
Council Priorities
Additional Transfer to FFP
Strategic Technology Investments
Other
Subtotal Assigned
Unassigned (Appropriations Reserve)
General Fund Balance
Audited
2012
$ 7,706,708 $
2,263,049
21,582,798
521,447
297,612
1,514,574
5,904,672
29,821,103
603,167
5,000,000
5,538,677
5,043,503
3,000,000
246,118
19,431,465
20,570,033
$ 79,792,358
Preliminary &
Unaudited
3rllfr11111111111111111111
9,919,486
3,392,444
22,134,775
601,446
353,580
309,040
4,980,595
28,379,436
1,843,417
5,000,000
6,843,417
32,575,369
$ 81,110,152
Change
$ 2,212,778
1,129,395
551,977
79,999
55,968
(1,205,534)
(924,077)
(1,441,667)
1,240,250
(5,538,677)
(5,043,503)
(3,000,000)
(246,1 18)
(12,588,048)
12,005,336
$ 1,317,794
9
FACILITIES FINANCIAL PLANNING RESERVE
The City continued its financial commitment to
the Facilities Financial Planning Reserve (FFPR)
in FY 2012 -13 by allocating significant resources
for the following projects that will begin in the
coming year: Marina Park, Sunset Ridge Park,
Lifeguard Headquarters and the Corona del
Mar Fire Station. Council Policy F -23, Facilities
Financial Planning Program (FFPP), approved in
August 2009, established a long -term facilities
financing plan for the replacement of all
General Fund - supported facilities. The City's
FFPR was established to fund the replacement
of critical City facilities such as, but not limited
to, the Civic Center and Police Department
buildings, fire stations, library branches,
parks, community centers, and other facility
improvement projects. The FFPP provides
a consistent, level funding plan to minimize
negative impacts on the General Fund in any
given year.
Facilities Financial Planning Reserve
Beginning Balance July 1,
Revenues
Transfer In
Interest Income
Park in Lieu Fees
Developer Contributions
Total Revenues
Expenditures
2010 Civic Center COPS Debt Service Contribution
Civic Center Construction
Other Major Facilities
Total Expenditures
Ending Balance June 30,
Overall, the FFPR balance is decreasing $6.4
million from the prior fiscal year. This change
is the net result of various increases and
decreases to both revenues and expenditures.
Revenues are decreasing due largely to a one-
time developer contribution in FY 2011 -12 and a
sustained drop in interest rates resulting from the
low interest rate environment. These revenue
decreases are largely offset with $10.2 million
of transfers in from the General and Equipment
Maintenance funds and a reclassification of
Park -in -Lieu fees to the FFPR. Expenditures
increased $13 million from the prior year due
to costs associated with the final construction
phase of the Civic Center and the acquisition of
the 1499 Monrovia property.
Preliminary &
Audited Unaudited
2012 2013 Change
$ 25,625,644 $ 33,149,725 $ 7,524,081
5,057,585 15,219,646 * 10,162,061
343,797 50,608 (293,189)
2,817,395 2,817,395
13,545,000 35,000 (13,510,000)
18,946,382 18,122,649 (823,733)
8,191,020 6,757,506 (1,433,514)
3,231,281 13,452,240 10,220,959
4,310,374 4,310,374
11,422,301 24,520,120 13,097,819
$ 33,149,725 $ 26,752,254 $ (6,397,471)
* Includes required annual General Fund transfer of $4,676,143, and one time transfers of $8,543,503 from the General
Fund and $2,000,000 from the Equipment fund.
10
OTHER STRATEGIC RESERVES
The City has set -aside strategic reserves
to normalize departmental budgeting for
programs that have life- cycles greater than
one year, act as a strategic savings plan for
long -term assets and liabilities, and enable
appropriate distribution of city -wide costs
to individual departments. Overall, these
reserves are increasing $1.4 million from the
prior fiscal year. This net change is the result
of various increases and decreases. The City
established a Facilities Maintenance Plan
Reserve in FY 2012 -13 to cover the annual
maintenance costs of the City's aging
facilities. The Insurance Reserve is decreasing
$2.4 million when compared to FY 2011 -12 to
cover insurance claims and a shortfall in the
Compensated Absences Fund (CAF). The
balance in CAF is increasing to a level that will
facilitate smoothing of the accumulated leave
bank. The Equipment Maintenance Reserve
(EMR) is decreasing $3.2 million largely due to
transfers out to the IT Equipment and Facilities
Financial Planning Reserve Funds. The EMIR
exceeded its targeted funding balance and
therefore had sufficient surplus to transfer out.
The IT Equipment Fund Reserve is increasing
$5.4 million due to aforementioned transfer in
from the EMIR and the receipt of proceeds from
the now defunct Airborne Law Enforcement
program.
Other Strategic Reserves
Facilities Maintenance Plan
Insurance Reserve
Compensated Absences
Equipment Maintenance
IT Equipment Fund
Total
2012
RESERVES SUMMARY
In summary, the City's ability to set aside resources
for future projects, acquisitions, and other
allowable purposes is the result of maintaining
a focus on the City Council's priorities, including
responsible, yet difficult, spending decisions,
adherence to the 15 Point Fiscal Sustainability
Plan, strong revenue monitoring, analysis, and
reporting. The City's reserve funds provide a
mechanism for legally saving money to finance
all or part of future infrastructure, equipment,
and other requirements and provide a degree
of financial stability. During both strong and
uncertain economic times, reserve funds provide
the City with a welcomed budgetary option that
can help mitigate the need to cut services. At the
end of FY 2012 -13, the sum total of all available
and discretionary reserves total about $128.9
million.
Reserves Summary Preliminary &
Unaudited
2013
General Fund
$ 67,798,222
Facilities
26,752,254
Facilities Maintenance
995,156
Man na Park Fund
(10,652,898)
Sunset Ridge Park Fund
(4,913,985)
Other Strategic Reserves
48,881,712
Total Available
$ 128,860,461
7 Excludes non - spendable and restricted reserve funds.
2 Set aside project expenditure balances for Manna and Sunset Ridge
Parks.
23,419,321
1,723,667
21,652,397
1,707,008
Preliminary &
Unaudited
2013 Change
$ 995,156 $ 995,156
21,062,647
2,242,118
18,431,462
7,145,485
(2,356,674)
518,451
(3,220,935)
5,438,477
48,502,393 $ 49,876,868 $ 1,374,475
11
EXPANDED TIDELANDS FINANCIAL REPORT
Effective January 1, 2013, California Public Resources Code 6306 revised the State Lands
Commission (SLC) financial reporting requirements for local trustee of Tidelands. In the past the
City has met reporting requirements through submission of the City's Comprehensive Annual
Financial Report (CAFR). The City recently developed an expanded and more detailed Tidelands
Financial Report, based on the available June 30, 2013 Tidelands information. The report was
submitted as a DRAFT and is subject to revision once the Audited CAFR is complete. An updated
Tidelands Financial report will be available shortly after December 31, 2013. This draft report can
be viewed at newportbeachco .gov /financialinfo.
Financial Report
city of newport beach I finance department
newportbeachca.gov 1 949.644.3127
quarter ending september 30, 2013
EXECUTIVE SUMMARY
The City of Newport Beach Finance Department prepares quarterly financial reports for the City Council to
review the status of revenues and expenditures for the City's funds. This quarterly financial report contains
information on resources and expenditures for the first quarter of the fiscal year, which is the period
between July 1, 2013, and September 30, 2013. Revenue categories for this year are likely to perform at
the projected levels. Economic growth is expected to increase at a slow but steady pace over the next
few years. Newport Beach has several attributes that have historically supported strong economic growth
and financial sustainability.
Overall, Newport Beach continues to be a stable, prosperous, and financially secure municipality through
the first quarter of fiscal year (FY) 2013 -14. This is due to its strong underlying tax base, governance, and
disciplined fiscal decisions. Going forward these core strengths will provide a firm base for continuing
expansion. In summary, we maintain a cautiously optimistic outlook for the near term and we will
periodically reassess our assumptions as conditions change throughout the year.
Economic Update
A recent report by the U.S. Commerce
Department indicated that the economy
slowed in the first quarter of the fiscal year
(July- September 2013), even before the budget
battles in Washington. Many forecasters now
expect the economy will maintain a slow
expansion at a pace of about 2% or less. The
latest data could weigh on Federal Reserve
policy makers, who have sought to spur business
and consumer investment by purchasing
$85 billion a month in bonds to lower interest
rates. Fed officials are contemplating when to
reduce the monthly purchases, but no action
is expected to take place until later in 2014
at the earliest given the economy's recent
disappointing performance. Economic growth
of 2% per year has continued to leave resources
- capital and labor - unused since the beginning
of the recovery in the middle of 2009. This
presents a classic "chicken -egg problem" in the
U.S. economy where households do not want
to spend until they see real gains in income and
firms do not want to hire and invest until they
see a pickup in spending. Economists predict
that idle capital and labor won't be left unused
forever and the economy will grow in the next
few years. While the timing of the national
economic recovery is uncertain, California's
economy is expected to pick up gradually in
2014 and 2015, according to a recent forecast
by Cal State Fullerton (CSUF) economists.
The CSUF economists found that Southern
California's outlook is somewhat brighter than
the nation as a whole. They predict a 1.6%
average rise in payroll jobs in the six - county
Southern California region this year, the same
growth rate as the national overall. During
14
2014 and 2015, they estimate, job growth will
rise to 2.3% in Southern California and more
than the projected 1.7% in the nation as a
whole. Orange County's median single - family
home price remains at least 15% below its 2007
peak, the height of the real estate bubble.
But the forecast concludes that a rapid price
rise over the past year "bodes well for future
consumer spending." The economists predict
"a tempering in housing price appreciation"
due to uncertainty over mortgage interest
rates and the overall economy. That will by no
means amount to a reversal of the upward
trend, they said. As with the national economy,
many Orange County businesses are delaying
hiring and investing because of concerns about
whether Congress and the administration can
agree on a budget and how long the Federal
Reserve will continue its bond - buying stimulus.
"The fundamentals of the economy are getting
stronger, but political uncertainty is putting
households and businesses in a holding pattern,"
economists added.
Top "3" Revenues
The General Fund's top three revenue sources (Property Tax, Sales Tax, and Transient Occupancy
Taxes) account for 74.46% of General Fund revenues. Certain revenues lagged during the first quarter
as they are received in large part during December and April of each fiscal year. Therefore, first
quarter results are not indicative of annual performance. With 25% of the year complete, General
Fund revenues are at 12.54% of budget. Due to the tax remittance calendar, this is a normal trend for
this time of year.
PROPERTY TAX
Overall, the City has received $2.4 million, or 3.12 %, of its budgeted property taxes through the end
of the first quarter. This is normal for this time of the year and first quarter results are not indicative of
budget performance at year end. Secured property taxes are recorded as they are remitted, in large
part, during December and April of each year. The City realized a 5.85% and 5.20% year- over -year
increase in its property tax charge and assessed valuation, respectively, and will most likely meet its
budget projections if delinquencies do not exceed 3.05 %. In the past 10 years, delinquencies have not
exceeded 2.5% and are normally less than 1 %.
Property Taxes
Secured
Unsecured
Prior Year Penalties & Interest
Supplemental
In Lieu of VLF
RDA Dissolution
All Other
TOTAL
Amended
Percent of
2013 -14
Year -over-
year
Budget
YTD Actual
Budget
Prior Year YTD
Increase/
2013 -14
2013 -14
Realized
Actual 2012 -13
Decrease
$ 63,881,434
$ -
0.00%
$ -
2,266,203
1,590,010
70.16%
1,487,854
6.87%
1,200,000
272,457
22.70%
343,570
- 20.70%
600,000
297,724
49.62%
95,383
212.14%
7,166,788
31,402
0.44%
10,995
185.60%
600,000
-
0.00%
-
'*
1,846,545
226,837
12.28%
144,953
56.49%
$ 77,560,970
$ 2,418,430
3.12%
$ 2,082,756
16.12%
Newport Beach posted Orange County's highest increase in assessed property values at 5.2% and
came in second in total local assessed value at $42.3 billion for fiscal year FY 2013 -14. The number of
home sales in Newport Beach decreased in September due to less inventory and rising mortgage rates.
However, there continues to be a sustained climb in the median home price, which is very close to the
height of the market peak in 2007.
City of Newport Beach Home Sales History
Single Family Residential Full Value Sales f Ol /Ol /2003 — 09/30/2013)
1.
1.
■ Sales — Median Price
11 111
, MN
n
,
I
ill III
I I
IN
R1 I
I .WM 10
11111
!iIIIIIIIIIn
IInIIIIIIIII
'1111111111111111111
.11111
IIIIIIIIIIIIII�
11111
IIIIIIIIIIIIII�IIIPII�IIIIIIIIIIIIIIIIII
11111
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
6, � 'L A &&0 �'.e 1 '� a^ ry A a � &. `a ti A a ry A N A ry '� P h"
���q��p��q���00c40 ,�808°,8'c54',�89c99 °o^O�O °�d d`o�w o°�.�ti ry°M1°a`�i A
Period
500
400
300
v
N
200
100
Source: HdL Companies
15
SALES TAXES
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 the
tax is remitted to the City, each quarter the BOE advances 907. of the net sales fax collections for the
same quarter of the prior year. The City has received $1.6 million, or 5.15 %, of its budgeted sales taxes
through the end of the first quarter. The amount of sales taxes realized in the first quarter represents one
advance payment from the BOE. As with property taxes, first quarter sales tax results are not indicative
of budget performance at year end.
Sales Taxes
Year -over-
Percent of
Year -over-
Budget
Amended
Increase/
2013 -14
Actual 2012-13
year
26.06%
Budget
YTD Actual
Budget
Prior Year YTD
Increase/
2013 -14
2013 -14
Realized
Actual 2012-13
Decrease
Sales and Use Tax
$ 22,247,340
$ 1,553,600
6.98%
$ 1,455,000
6.78%
Property Tax in Lieu of Sales Tax
7,919,248
-
0.00%
-
**
TOTAL
$ 30,166,588
$ 1,553,600
5.15%
$ 1,455,000
6.78%
TRANSIENT OCCUPANCY TAXES
Representing two of 12 payments, the City has received $4.3 million, or 26.06 %, of its budgeted
Transient Occupancy Taxes (TOT) through the end of the first quarter. TOT collections have increased
$643,261 or 17.76% year- over -year. This is due to increases in occupancy rates in 17 of the City's 20
hotels, motels, cottages, and resorts and a generally improving travel and tourism business sector.
The three hotels (Resort at Pelican Hill, Marriott Hotel, and Island Hotel) with the highest TOT payments
accounted for 50% of total TOT revenue. TOT receipts for these hotels increased 12.2, 12.3, and 14.6 %,
respectively, over the prior year. A good portion of the City's TOT growth in recent years is attributable
to the Resort at Pelican Hill, which recently captured first place in the Conde Nast Traveler magazine's
Reader's Choice list of 2013 Best Southern California Resort Hotels. The magazine's readers ranked the
Montage Laguna Beach in second place.
Transient Occupancy Taxes
Transient Occupancy Taxes
t i - ` +
Amended
Budget YTD Actual
2013 -14 2013 -14
16,363,510 $ 4,264,418
Percent of
Year -over-
2013 -14
year
Budget
Prior Year YTD
Increase/
Realized
Actual 2012-13
Decrease
26.06%
$ 3,621,157
17.767/.
p4F�,
�. AWIIIL ,A
IWO
Yv
MANAGEMENT AND EXPENDITURE TRENDS
The charts below compare actual first quarter expenditures for all funds against prior fiscal years.
Expenditure Trends - All Funds
The first quarter FY 2013 -14 salaries and benefits
expenditure category is slightly higher than the
prior year due to expensing the cost of Other
Post - Employment Benefits (OPEB) monthly
beginning in FY 2013 -14 as opposed to expensing
the total cost at year -end. Expenditures for
maintenance and operation are slightly higher
than the prior year due to the escalating costs
of supplies, materials, and contractual services.
When compared to this some time last year,
capital improvement expenditures are lower due
to the varying nature of spend cycles for
■Salaries &Benefits
large construction projects from year -to- .M &O
year. •Capital Improvement
Salaries and Overtime Comparison
The chart to the right compares how first quarter
salary and overtime expenditures have changed
since FY 2007 -08. Expenditures in FY 2013 -14 are
generally consistent with the prior year and
slightly higher due to negotiated salary increases.
Overtime expenditures have remained generally
fiat while full -time positions have declined since
fiscal year 2009 -10.
• Regular Salaries
■ Overtime
Full -Time Positions Trend
$40
$35
$30
$2s
$20
$ls
$10
$5
$25
$20
$15
$10
$s
e.
2008 2009 2010 2011 2012 2013 2014
2008 2009 2010 2011 2012 2013 2014
The City has been proactive in restructuring and 860
making strategic cuts in department operations, 840 622 831 633
striving to evolve into a smarter, faster, smaller 820 6,4
local government. The adopted FY 2013 -14 am 60,
292
balanced budget includes a net reduction of
16 full -time positions and 14 full -time equivalent 80
O 763
(FTE) part-time positions. Many of the staff 160 752
reductions were achieved via a Voluntary 240 136
Separation Incentive Plan (VSIP). The chart to 720
the right depicts the City's ongoing progress
towards reducing full -time positions to mitigate 00 I f
the impact of rising pension costs.
2006 200E 2008 2009 2010 2071 2012 2013 20t4
Fiscal Year
CONCLUSION
Due to the positive underlying economic factors in Newport Beach, we believe revenues will continue
their upward trajectory, albeit at a slower pace compared to the pre- recession era. Strong economic
factors, good governance and management's commitment to keep expenditures in check are all key
factors which bolster the City's prospects of maintaining a structural balance in FY 2013 -14.
17
& Committees Report
city of newport beach I city manager's office
newportbeachco.gov 1 949.644.3002
april - september 2013
i
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), Jerry King, Eleanor
M. Palk, Robyn Grant, John Prichard
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.
Now, Tim Hetherton, Acting Library Services Dir.
STAFF SUPPORT:
Staff allocates approximately 22 hours a month
to this board.
QUARTERLY PROGRESS REPORT
The Board of Library Trustees met to discuss, review, or
approve the following items:
Approvals:
• December 23 and 26 Library holiday closure
• Purchase of a RFID self - service kiosk for the Balboa Branch
using a gift from the Newport Beach Public Library
Foundation.
Special Meeting on August 16:
• Discussed the Library Services Director recruitment
• Confirmed the ppointment of Library Services Manager
Tim Hetherton as the Interim Director.
Library Policy Review:
• No changes were recommended to the Library Use Policy
regarding paid tutoring services.
• An amendment was made to the Library's Study Room
Policy to allow a 10- minute grace period for reservations.
• Conditional approval was given for changes in the Loan
Period Policy for circulating iPad and laptops.
• Approval was given to the Media Center Policy and Use
Agreement.
Visit the library online at newportbeachca.gov /nbpl.
21
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:
Brion Jeannette (Chair), Robert W. Yant (Vice
Chair), James Anderson, Richard R. Luehrs, James
L. Pirdy, Stephen Sandland, and Ron Yeo
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.
22
WWII `
QUARTERLY PROGRESS REPORT:
On July 30, 2013 the newly appointed board met
to elect a Chair and Vice Chair. In addition, staff
made a presentation on their organization and
the codes used.
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:
Rita Goldberg (Chair), Arlene Greer (Vice
Chair), Caroline Logan (Secretary), Judy
Change, Michaell Magrutsche, Robert Smith,
Charles Ware 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 Thursday each month, unless
otherwise noticed.
STAFF LIAISON:
Cynthia Pulliam Cowell, MLS, Library Services Dir.
Now, Tim Hetherton, Acting Library Services Dir.
STAFF SUPPORT:
Staff allocates approximately 30 hours a month
to this commission.
QUARTERLY PROGRESS REPORT:
The City Arts Commission met to discuss, review, or approve
the following items:
• Concerts in the Parks -The season's performances,
locations and dates were final'¢ed. The three summer
concerts were held at the Civic Center Green drawing
approximately 1,800 people at each performance.
• Art Exhibitions -The logistics were confirmed for the
year -long exhibition of donated historic California Scene
Paintings from the Mark and Jan Hilbert collection that will
rotate every four months from May 1, 2013 -April 30, 2014.
• Newport Beach Art Exhibition and Sale -The April 13 event
was held at the OASIS Senior Center with 65 artists
participating.
• Donated Artwork - Several offered artworks as donations
or through purchase were discussed for site installation at
the Civic Center and other municipal properties.
• Opportunities for Artists - The application used for the
consideration of art for donations, proposed exhibitions,
and for sale was revised and is available on the Art and
Cultural Services web page.
• Council Policy 1 -11 - Work has begun on recommended
revisions to the Donation of Art to City of Newport Beach
Council Policy.
More information on the City's cultural arts programs
can be found online at newportbeachca.gov /
culturalarts.
23
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:
Maiqual Talbot (Chair), Douglas Coulter (Vice
Chair), Debra Allen, James "Mickey" Dunlap and
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: additional hours are needed when
appeal hearings are in progress.
QUARTERLY PROGRESS REPORT:
The beginning of the quarter brought new
challenges for the Civil Service Board, as they were
introduced to the new Council Chambers and
technology at the new Civic Center. After one
training session in the new environment, the Board
Members were capable of navigating the system
proficiently.
24
In May 2013, Newport Beach Police Department's
Crime Prevention Specialist Andi Querry gave the
first presentation in the new Council Chambers,
covering Identity Theft and Active Shooter training.
The location and openness of the Civic Center
building requires awareness, and City staff members
were invited to attend to learn sound safety
practices.
In June 2013, Human Resources Supervisor Rebecca
Redyk presented information regarding Exam
Development and the Public Safety Promotional
Process. Since this Board is charged with hearing
personnel appeals from the public safety
departments, it is essential that they be aware
of how the process is structured and complies
with local, state and federal law as a job - related
process.
In July, the Board welcomed back reappointed
Board Member Maiqual Talbot, who was also
elected to serve as Civil Service Board Chairperson
for the 2013/2014 year. Board Member Douglas
Coulter was elected by the Board Members to
replace Talbot as the Vice Chairperson.
The Board continued to emphasize the importance
of Employee Performance Evaluations, and praised
those departments who are diligent with the
process. Soon, the Board would like to see no late
evaluations. The Human Resources Department
(HR) will be introducing a new Performance
Evaluation process /form designed to assist
departments and offer guidelines to create a more
meaningful employee evaluation. It is expected to
be piloted before the end of 2013.
In September 2013, a Civil Service Employee
submitted an appeal of termination to the
Secretary to the Board Terri L. Cassidy, Deputy City
Manager /Human Resources Director, to be heard
by the Civil Service Board. The appeal hearing
process is now in the scheduling stage.
The Civil Service Board continues to be engaged
in the City's Human Resources and Administrative
processes and offers suggestions and guidance to
HR staff members to improve employee /community
understanding via meeting workshops.
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.
G. Advise the City Council on the implementation
of assigned parts of the Tidelands Capital Plan
such as:
1. Dredging priorities.
2. In -bay beach sand replenishment priorities
3. Harbor amenities such as mooring support
service areas and public docks.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 702
COMMITTEE MEMBERS:
Duncan McIntosh (Chair), Brad Avery, David
Girling, Doug West, Paul Blank, Karen Rhyne,
Joe Stapleton 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
STAFF SUPPORT:
Staff allocates approximately 25 hours per month to
this commission.
QUARTERLY PROGRESS REPORT:
The Harbor Commission met to discuss, review, or approve
the following items:
• Election of officers
• Review of objectives for fiscal year 2012 -13
• Review the 3388 Via Lido Dock and boardwalk project
• Mooring permit revocations for failure to pay annual
rental fees - 5 -145, H -410, C-42 and J -51
• Request for temporary moorage of two large vessels in
Newport Harbor
• Representation on the Tidelands Management
Committee's Citizens Advisory Panel
• Appeal of Harbor Resources decision - cantilevered
deck at 1114 E. Balboa Blvd.
• Review the subcommittee final report on public piers
The City's Harbor Guide is available online at
newportbeachca.gov /harborguide.
25
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 Tingley (April - June)
Tom Anderson (Chair), Ron Cole (Vice Chair), Roy
Englebrecht, Kathy Hamilton, Walt Howald, Marie
Marston and Jack Tingley (July - September)
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 Detweiler, Recreation &Senior Services Dir.
Mark Harmon, Municipal Operations Director
Mike Pisani, Municipal Operations Deputy Dir.
26
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 to
discuss, review, or approve the following items:
April to June included the following items:
• Picnic Table Donation -two approved
• Reforestation Request -one approved
• Special Tree Removals -three approved
• Tree Donation - one approved
• Sunset View Park- reviewed and provided
feedback of the conceptual plans
July to September included the following items:
• Appointment of Ad -Hoc Committees:
• Community Service Award: Englebrecht,
Hamilton & Howald
• Lower Castaways Park Design: Marston &
Tingley
• Street Tree Designation List: Anderson &
Englebrecht
• G -1 Policy: Hamilton & Howald
• West Side Dogs Off Leash: Cole & Marston
• Youth Sports Commission Liaison: Anderson &
Englebrecht
• Election of Officers -Tom Anderson (Chair); Ron
Cole (Vice Chair)
• Newport -Mesa Soccer Club Request for
Temporary Lights at Bonita Canyon Sports Park #6
- approved
• Reforestation Requests -three approved; one
disapproved
• Special Tree Removal Appeal -one continued;
one denial of appeal
• Special Tree Removals -one continued; three
approved
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 7061707
COMMITTEE MEMBERS:
Bradley Hillgren (Chair), Larry Tucker (Vice Chair),
Kory Kramer (Secretary), Fred Ameri , Tim Brown, Ray
Lawler, and Jay Meyers
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:
Brenda Wisneski, Deputy Community Development
Director
STAFF SUPPORT:
Staff allocates approximately 25 hours per month to
this commission.
QUARTERLY PROGRESS REPORT:
The Planning Commission met to discuss,
review, or approve the following items:
April to June included the following items:
• Recommendations on Draft Housing Element
• Finalized recommendation related to residential
lot merger regulations
• Determined the Capital Improvement Program
is in compliance with the General Plan
• Determination of a rear setback on two coastal
canyon properties
• Various Public Hearings related to residential
developments and a parking waiver for a
commercial development.
July to September included the following items:
• Recommend approval of Lido Villas residential
development
• Approval of the Master Site Development Plan
for Uptown Newport
• Study Session for the proposed amendment to
the Telecommunications Ordinance
• Recommend approval of the final draft Housing
Element
• Woody's Wharf Conditional Use Permit (appeal
in process)
• Amendment to the Santa Ana Heights Specific
Plan
Projected Tasks:
• Amendment to the Telecommunications
Ordinance
• Study Session and consider approval of Back
Bay Landing Mixed -Use Project
• Miramar Avenue Zoning Code Amendment
related to alley setback requirement
27
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 oversees adherence to the City's 15 -Point
Fiscal Sustainability Plan.
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:
During the second and third quarters of calendar
year 2013, the Finance Committee met in the
months of April, May, June, and July.
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.)
28
QUARTERLY PROGRESS REPORT:
The Finance Committee met to discuss, review or
approve the following items:
• Reviewed and forwarded for Council approval
revisions to Council policies F -2, Reserve Policy; F -28,
Facilities Replacement Program; and a new policy,
F -b, Debt Management Policy.
• Previewed the Fiscal Year 2013 -14 proposed budget.
• Received a briefing on recommendations for the
renewal of excess general liability, excess workers'
compensation and property insurance coverage.
• Provided direction on refinements to the Facilities
Financial Planning Tool.
• Conducted a review of recommended revisions to
the Master Fee Schedule and specific changes to Fire
Department related fees.
• Observed demonstration of staff's long -range fiscal
forecasting tool which showed the model's
interactive features.
• Conducted an audit entrance conference w th the
City's auditors, White Nelson Diehl Evans, for fiscal year
ending June 30, 2013.
• Reviewed the performance of the City's investment
portfolio; reviewed revisions to Council Policy F -1,
Investment Policy, and forwarded recommendations
to the City Council for approval; and considered
alternative investment portfolio management
strategies.
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:
The Balboa Village Advisory Committee (BVAC)
continues to develop the parking programs to
implement the Balboa Village Master Plan. A
parking survey was kicked off 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 was repeated in the
summer to evaluate the peak season. The survey
results will be critical to formulating the appropriate
parking programs. Preliminary recommendations
were presented related to an employee permit
parking program and parking meter technologies.
However, the conclusion is that the programs must be
implemented concurrently for the best results and to
ensure user groups are not negatively affected.
The Committee finalized the scope for the Urban Land
Institute to conduct a Technical Advisory Panel (TAP)
on September 11, 2013. This was an intense, one -day
workshop with a variety of design professionals that
focused on identifying creative methods to enhance
Balboa Village's public realm.
29
Bicycle Master
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:
The 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
Fern Nueno, Associate Planner
Jeff Lu, Police Lieutenant
STAFF SUPPORT:
Staff from the Public Works Department, Community
Development Department and Police Department
will allocate approximately 50 -100 hours per month
to the Bicycle Master Plan process.
30
Plan Oversight
QUARTERLY PROGRESS REPORT:
The Bicycle Master Plan Committee (BMPOC) met
in July, September and October for presentations
related to the creation of the Bicycle Master
Plan. It is anticipated that the first submittal of
the existing conditions report will be delivered in
December for the Committee's review.
The Bicycle Master Plan project is underway with
the extensive review of existing conditions and
public outreach efforts. To date, Alta Planning
+ Design, the Bicycle Master Plan consultant,
performed a public outreach event at the
Newport Beach Pier, created a project website,
and through an online survey has received
pertinent bicycle - related information from the
public.
Tentative Project Schedule:
• Summer 2014 - Draft Bicycle Master Plan Available
for Public Review
• Fall 2014 - Adoption of Bicycle Master Plan
Planned Work for Next Quarter:
• Project Outreach Event -Small event at Back Bay
Drive to solicit public input for the project.
• Community Open House- Workshop type event
at the Central Library to inform the public on the
Bicycle Master Plan Project and solicit input.
• Draft Existing Conditions Report- Presentation and
review of the draft Existing Conditions Report.
Find out more about the Bicycle Master
Plan project at newportbeachca.gov/
bicycle mosterplan.
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, Charles McKenna, Tyler Gentry,
Kimberly Jameson, Joshua Olazabal, Debbie Stevens,
QUARTERLY PROGRESS REPORT:
Merrit Van Sant, and Josh Yocam
The Committee met on September 26, 2013, to
receive a briefing on the Back Bay Landing Project
and to make assignments for the review of the
LENGTH OF TERM FOR MEMBERS:
project's Draft Environmental Impact Report (DEIR).
The seven members appointed by the City Council
In November, 2013, the committee will review and
shall serve a four -year term, with a limit of two
finalize comments on the DEIR.
consecutive terms. Council Member appointees shall
serve a one -year term.
FREQUENCY OF MEETINGS:
As needed
STAFF LIAISON:
Patrick Alford, Planning Manager
STAFF SUPPORT:
Staff allocated approximately 40 hours to this
committee during the quarter.
31
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 Wompole
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.
32
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 Danger,
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 to discuss, review, or approve the following
items:
• Water quality projects and programs- reviewed
the City of Newport Beach's Bay Water Quality and
Biof Im project and the final report for the Newport
Bay Copper project.
• Presentations - Irvine Ranch Water District's San
Joaquin Marsh and the Buck Gully /Little Corona
Beach Water Quality Program.
33
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,
Don Hecht (# 1), Eleanor Todd, Gerald Scarboro
( #2), Tom Anderson, Bonnie O'Neil ( #3), Tom Meng,
Jock Marlo ( #4), John Cunningham, Craig Page
( #5), Shirley Conger, Lloyd "Bud" Rosner ( #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.
34
QUARTERLY PROGRESS REPORT:
The Aviation Committee met in June,
September, and October 2013.
Topics of discussion this period included:
• The FAA's development of the RAWLZ Departure
procedure for John Wayne Airport (flights going
north from JWA). The FAA has indicated to the
City that it may look at a more narrow, curved
departure pattern per our work with GE Aviation/
Naverus, but will not do so until after the FAA works
on something similar at Atlanta's Hartsfleld /Jackson
International Airport.
• Updates on passenger and commercial flight
trends at JWA- monthly trends, year - over -year
trends.
• Marketing efforts for JWA, including adding
destinations (and the role of the New Markets Task
Force and Visit Newport Beach).
• The EIR for the Amendment /Extension of the
Settlement Agreement for JWA, including the
release of the Notice of Preparation.
For more information, please see the minutes
to the Aviation Committee's meetings online at
newportbeachca.gov /agendas.
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 Edward Selich (Chair), Mayor Pro
Tem Rush Hill, Council Member Nancy Gardner,
Planning Commissioner Bradley Hillgren, Planning
Commissioner Fred Ameri, Planning Commissioner
Jay Myers, and Member -at -Large Michael Toerge
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 will be drafting the Implementation Plan for
review by the Committee; it is anticipated that
approximately 20 hours per week will be spent in
the initial preparation of the draft document.
QUARTERLY PROGRESS REPORT:
During the April to June quarter, the Committee
reviewed the coastal boundary to determine
where adjustments were needed and the
permitted land uses by district. Specific regulations
considered during the July to September quarter
included standards related to bluff development.
The majority of the administrative chapters have
been reviewed by the Committee.
The Committee wants to coordinate with California
Coastal Commission staff regarding many of
the more complex issues, such as development
along coastal bluffs and canyons; however,
this is expected to delay the schedule. Coastal
Commission staff attended the Committee's
October meeting and committed to dedicating a
staff member to assist the City in this effort.
35
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), 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
ki7
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 have a formal meeting; however,
the Fourth of July celebration this year was another
success and step in the right direction for creating a
family friendly way for the community to celebrate
Independence Day.
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, Jeff Herdman, ,
Don Lawrenz, Jamshed Dastur, Paul Blank, Jack
Keating
LENGTH OF TERM FOR MEMBERS:
Ongoing until rescinded by City Council action.
In ip.
M r-• M ice`
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 quarter
to this committee.
QUARTERLY PROGRESS REPORT:
The Tidelands Management Committee met to discuss,
review, or approve the following items:
• Citizen's Advisory Panel - Appointment of members
• Tidelands Capital Plan - Review and forward
recommended plan to the City Council
• Recap of the Harbor Commission's PY 2012 -13 goals
and review of the Commission's FY 2013 -14 goals
• Balboa Island bulkhead update and next steps
• Harbor Commission recap of agenda action items
during previous three months
37
Reports
city of newport beach I city manager's office
newportbeachca.gov 1 949.644.3002
april - september, 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:
$2,755,000
FUNDING ALLOCATED TO DATE:
$2,165,000
AMOUNT SPENT TO DATE:
$263,000
STATUS TO DATE:
On August 14, 2012, City Council approved funding the
design of this project. Staff has been working closely
with DVD on the various project design elements. The
construction documents have been completed and
are pending the approval of a Caltrans encroachment
permit for improvements at the intersection of Balboa
Boulevard and West Coast Highway. The project was
advertised for bids and bids were opened on October
13, 2013. At its November 12 meeting, the City Council
awarded the construction contract. Construction is
tentatively scheduled to begin in January 2014.
41
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
Pipeline Improvement project will increase
reliability of the existing pipeline system, improve
supply pressures and increase fire supply flows to
the Corona del Mar area. The project includes
the installation of a new 30 -inch steel water
transmission main that will be connected to the
Big Canyon Reservoir at Pacific View Drive and
continues down San Miguel Drive, San Joaquin Hills
Road, MacArthur Boulevard, East Coast Highway
and Carnation Avenue. The new waterline consists
of approximately 5,300 linear feet of cement
mortar lined and tape wrapped (CML &TW) steel
pipe. In addition to constructing the new water
pipeline, this project includes relocating the City's
current pressure regulator structure that connects
to the Metropolitan Water District's system from its
current location 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:
$1,630,646
STATUS TO DATE:
A community information meeting was held in
the Civic Center Community Room on August 21,
2013. The purpose of the meeting was to discuss
the project's 2nd phase of construction which
involves the installation of a 24 -inch waterline across
East Coast Highway at Carnation Avenue along
with installation of a new 30 -inch water main up
MacArthur Boulevard to San Miguel Drive.
In order to get across East Coast Highway without
causing major traffic impacts, the contractor T.E.
Roberts proposed installing the pipeline by tunneling
under the highway. During the community meeting,
a few business owners along Coast Highway raised
concerns about the potential impacts to their
customers and the reduction of on- street parking
during construction. City staff and the contractor
worked closely with the businesses to minimize the
impacts by creating a special valet unloading area,
placing additional "businesses open" signage, and
providing additional signage to clearly mark the
detour routes.
Additional Phase 2 work completed to date involves
the installation of the water mainline pipe that runs
up MacArthur Boulevard toward San Miguel Drive.
Due to the MacArthur Boulevard roadway narrowing
north of Harbor View Hills Drive, the City allowed
the contractor to close all northbound lanes for a
limited time during the day in an effort to expedite
construction. Although the contractor encountered
large rock pockets that required extra work to
excavate, thus for they have managed to stay on
schedule and completed Phase 2 work prior to
Thanksgiving.
In order to avoid affecting the community during
the holiday season, the contractor will start work
on Phase 3 of the project after the first of the year.
Phase 3 consists of installation of a 24 -inch water
main in Carnation Avenue and East Coast Highway
from Dahlia Avenue to Fernleaf Avenue, a new
pressure regulating structure at Dahlia and minor
sewer line improvements. Phase 3 work will be
complete by the summer of 2014.
Project information is available on the City's website
at newportbeachco.gov /cdmpipeline.
43
Fire Rings
DEPARTMENT:
Community Development Department
PROJECT LEAD:
Brenda Wisneski, Deputy Community Development
Director
PROJECT START DATE:
February 2012
TARGET COMPLETION DATE:
March 2014
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 (CCC).
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:
The California Coastal Commission considered
the City's Coastal Development Permit
application to remove fire rings on March 6, 2013.
After receiving the staff report, recommending
denial of the request and hearing public
testimony, the Coastal Commission voted to
delay its decision until the SCAQMD concluded
its rule amendment process. The SCAQMD took
action to regulate fire rings on July 12, 2013.
The City withdrew its application to the Coastal
Commission so that it could better evaluate
the appropriate steps to satisfy the SCAQMD
requirements, the needs of the community and
the needs of the City's visitors. On November 26,
2013, the City Council directed staff to take the
necessary steps to comply with SCAQMD Rule
444 by: 1) maintaining 27 fire rings and space
them 50 feet from one another; 2) limiting the
material to burning of natural firewood or low -
smoke logs; 3) authorizing the City or a vendor
to sell the natural firewood and /or low -smoke
lots in locations proximate to the fire rings; and 4)
participating in the SCAQMD alternative fuel fire
rings demonstration project. The City Council's
action included providing the appropriate rules,
regulations, enforcement and supervision, as well
as to seek a permit from the California Coastal
Commission. Staff at the Coastal Commission and
the SCAQMD have expressed concerns about
the City's proposed plan.
Project information is available online at
newportbeachca.gov /firerings.
45
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:
$3.66 million on outside counsel and litigation costs
to date.
AMOUNT SPENT TO DATE:
$3.66 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:
(I) Federal Litigation:
The federal litigation involving Yellowstone, Pacific
Shores Newport Coast Recovery and the City was
successfully resolved in the City's favor pursuant to a
motion filed by the City. A panel of three 9th Circuit
Court of Appeals judges, however, determined that
Yellowstone, Pacific Shores and Newport Coast were
entitled to have a trial on the issues they raised in
the trial court. The 9th Circuit Court of Appeals is
currently considering whether the panel's decision
should be heard before 11 randomly selected 9th
Circuit Judges.
(2) Challenge to Morningside Zoning Agreement:
Maintain Our Residential Neighborhoods ( "MORN ")
filed 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. The
parties have settled their dispute and MORN dis-
missed its case.
(3) Enforcement of Morningside Zoning Agreement:
On August 9, 2011, the Council adopted Ordinance
No. 2011-20, which terminated the Zoning
Agreement between the City and Morningside.
Morningside filed a challenge to the City's
termination of the Zoning Agreement in Orange
County Superior Court and the City filed 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 June 19, 2012, the Court granted the City's
motion upholding the City's decision to terminate
the Zoning Agreement. On August 28, 2013, the
Court entered judgment in favor of the City finding
that Morningside's operations violated the
provisions of the Municipal Code. The Court has
enjoined Morningside from violating the provisions
of the Municipal Code in Newport Beach and
Morningside has relocated its residential facilities
outside of the City.
(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 trial court in the
aforementioned federal litigation.
47
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 122
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,
91 traffic signals have been upgraded and linked to
the new high speed fiber optic backbone, 30 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.
• Phase 6 includes improvements to Newport
Coast Drive and portions of San Joaquin
Hills Road. This phase is currently in design and
construction is planned to begin in January 2014.
• Phase 8 includes improvements to San Miguel
Drive. The design of Phase 8 is planned to begin in
spring of 2014.
49
Arnvul View I Newport Bill
W AT G renal view I Overall Site
Lido House Hotel
DEPARTMENT:
Community Development
PROJECT LEAD:
Kimberly Brandt, Community Development
Director
PROJECT START DATE:
July 2010
TARGET COMPLETION DATE:
Summer 2014, for City project /lease
December 2015, for Coastal Commission
DESCRIPTION:
With the new Civic Center open and operating,
the City continues to plan 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. Work began on amendments
to the General Plan, Coastal Land Use Plan,
and Zoning Ordinance to accommodate future
mixed use development. While work on the
amendments was progressing, the City selected,
through an open and competitive Request
for Qualifications (RFQ) and then a Request
for Proposals (RFP) process, R.D. Olson as the
development team to negotiate a long -term
lease of the property to develop and operate an
upscale hotel on the site.
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:
Project Timeline:
• Coming months - R.D. Olson will finalize and submit an
application to develop the proposed Lido House Hotel.
After the preparation of a Draft Environmental Impact
Report, public hearings on the project, including the hotel,
land use and zoning amendments, and draft lease, will
occur in the summer of 2014. Any final project
approved by the City will require California
Coastal Commission consideration.
• November 6, 2013 -The City issued a Notice of
Preparation of an Environmental Impact Report
requesting comments on the scope of the environmental
analysis and will hold a public scoping meeting on
Wednesday, November 20, 2013. Comments will be
received at the meeting and through a 30-day
comment period ending on December 5, 2013. The
Notice of Preparation can be found at the City's website:
newportbeachca .gov /lidohousehotel.
• October 8, 2013 -The City selected RBF Consulting to
prepare an Environmental Impact Report for the Lido
House Hotel and land use plan and zoning amendments.
• August 13, 2013 -The City approved an exclusive
negotiating agreement with R.D. Olson for the reuse of the
former City Hall site with an upscale hotel development.
• July 9, 2013 -The City Council selected R.D. Olson as the
development team to conduct further negotiations.
The City Council also approved an Exclusive Negotiating
Agreement with R.D. Olson and established an ad -hoc
negotiating committee consisting of Council Members Hill
and Selich.
More project information is available online at
newportbeachca .gov /lidohousehotel.
51
��
Fay" ��.
Marina Park
DEPARTMENT:
Public Works
PROJECT LEAD:
Dave Webb, Public Works Director
Iris Lee, Senior Civil Engineer
PROJECT START DATE:
2006
TARGET COMPLETION DATE:
Spring 2016
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, a
sailing center and community center building
totaling 24,390 square feet, new park with
amenities including basketball half- courts,
tot lot and playground, an exercise circuit,
walking paths and beach area, new Girl Scout
Leadership Center and parking.
The Marina Park site is located on the bay side of
the Newport Peninsula between 15th and 19th
Streets. The 10.5 -acre site is owned by the City
and is currently being used for several purposes
including a 57 space mobile home park, Las
Arenas 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:
$36,700,000
FUNDING ALLOCATED TO DATE:
$27,500,000
AMOUNT SPENT TO DATE:
$3,900,000
STATUS TO DATE:
In August 2013, the City received its Coastal
Development Permit (CDP), the last of the regulatory
agency permits needed, to begin construction of the
Marina Park project. In preparation of the upcoming
construction, the City distributed notices to the mobile
home tenants indicating they have 90 days to vacate
the premise per the settlement agreement executed
by all parties in 2007. This notice requires all residents
vacate by December 2, 2013.
The City has also received the California Coastal
Commission's approval on the CDP amendment to
include the 71 -foot lighthouse element. The lighthouse
will 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.
Due to the uniquely different types of construction
within the project, the City has divided the construction
work into four separate general phases (or "packages ")
to increase efficiency and minimize cost. These bid
packages include:
• Package 1 -mobile home removal /demolition and palm
tree relocation;
• Package 2 -marina and soil remediation;
• Package 3 -park and buildings construction; and
• Package 4- dock construction.
The City anticipates awarding Package 1 in fall 2013
with construction beginning in December 2013.
Currently, the completion of the entire project is
scheduled for spring 2016.
Project information can be found online on the City's
website at newportbeachca.gov /marinapark.
53
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:
Applicant fees are collected and cover all
associated project costs.
TOTAL FUNDING REQUIRED FOR PROJECT:
$4 million (estimated)
FUNDING ALLOCATED TO DATE:
$3,807,000
AMOUNT SPENT TO DATE:
$3,703,210 ($2,441,195 for Environmental Impact
Report, $431,000 for traffic analysis, $353,352 for
contract planner, $104,684 for outside counsel,
$86,293 for other studies and $286,686 for staff
time, mailings and printing)
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
newportbeachco .gov /banningranch.
55
Park Avenue Bridge Replacement
Park Avenue Bridge
Replacement
DEPARTMENTS:
Public Works Department
PROJECT LEAD:
Fong Tse, Principal Civil Engineer
PROJECT START DATE:
2009
TARGET COMPLETION DATE:
Fall 2016
DESCRIPTION:
The Park Avenue Bridge Replacement project was
initiated by the City in 2009 to replace the existing
bridge from Big Balboa Island to Little Balboa Island
over the Grand Canal. The existing bridge was
constructed in 1928 and was rehabilitated in 1984
which included adding ADA access ramps. The
existing bridge is a concrete five -span bridge with
five- 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) has
classified this bridge as functionally obsolete. The
bridge was included in the Federal Highway Bridge
Program (HBP) for rehabilitation or replacement.
FUNDING SOURCE:
Federal Highway Bridge Program
TOTAL FUNDING REQUIRED FOR PROJECT:
$4.41 Million
FUNDING ALLOCATED TO DATE:
$4.41 Million
AMOUNT SPENT TO DATE:
$110,000
STATUS TO DATE:
City staff requested additional grant funding which
was approved by Caltrans and brings the total federal
allocated funding for the project to $4,414,100.
RBF Consulting Engineers (RBF) was retained to
provide preliminary engineering and conceptual
design services. Conceptual plans and renderings
were prepared and, during January through April,
presentations were made to the Balboa Island resident
association groups. Final plan concepts have been
completed.
The City approved an amendment to the contract
with RBF for environmental, permitting and final
engineering phases. Since this project is located within
the coastal zone, a Coastal Development Permit
(CDP) will be required from the California Coastal
Commission (CCC). Staff is estimating approximately
24 to 30 months to complete the environmental,
permifing and final engineering phases.
Since the last QBR, the first environmental broad -brush
checklist, commonly referred to as the Preliminary
Environment Study (PES), has been submitted
to Caltrans for its review and processing. A CDP
application is on schedule to be submitted to the CCC
in late spring 2014. Staff anticipates construction to
begin in fall 2015.
57
Sunset Ridge Park
Sunset Ridge Park
DEPARTMENT:
Public Works Department
PROJECT LEAD:
Andy Tran, Senior Civil Engineer
PROJECT START DATE:
August 2007
TARGET COMPLETION DATE:
Winter 2014 -2015
DESCRIPTION:
The proposed 13.7 acre Sunset Ridge Park
is situated on the northwest corner of West
Coast Highway and Superior Avenue in the
West Newport Community. Per the City's
General Plan, Sunset Ridge Park is planned to
be an active park with amenities including a
Pony League baseball field, two soccer fields,
children's tot -lot area, restrooms, picnic area,
shaded viewpoint, butterfly garden, walkways,
walls, and native 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, 2013,
CCC staff issued a Notice of Intent to Issue Permit. The
revised findings were approved during the June 13, 2013
Coastal Commission hearing.
As part of the Commission's approval, the special
conditions made several significant changes to the
park, including prohibiting direct access to the park
from West Coast Highway, removing the on -site parking
lot, and changing the park's landscaping (except for
the playing fields) from ornamental plants to a park with
primarily California native plants of the Coastal Sage
Scrub vegetation community.
Construction is anticipated to begin in winter 2013 -2014
with an estimated project completion by winter 2014-
2015.
Project information is available on the City's website at
newporfbeachca .gov /sunsetridgepark.
Note: On November 8, 2013, the City received the CDP.
59
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:
March 2014
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:
The State Lands Commission approved the City's
request 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 capital improvements
and maintenance activities within Newport
Harbor.
In August, City staff held two public workshops
to listen to feedback and assemble comments
received from the residential, commercial and
mooring permittees. City Council reviewed these
comments during a November study session
and regular meeting, and the City Council
approved changes to the existing residential
pier process including: 1) eliminating the buffer
area around the docks from the fee calculations;
2) reducing the model pier permit to a simple,
one -page format; 3) re- classifying homeowner's
associations from commercial to residential status
(assuming its marina is only for homeowner use);
and 4) applying the revenue from Harbor Patrol
generated rentals (visiting vessels) to mooring
related improvements to the best extent possible.
More information is available online at
newportbeachca.gov/harborrenters.
61
ice.
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:
With the recent action by City Council to proceed
with outsourcing the City's trash operations, staff
is focusing on the consolidation of the City utility
and maintenance yards. Concepts are being
developed to reconfigure a combined yard and
repurpose the vacated yard. Potential uses in
the vacated yard include a community center,
relocated police station, and other uses. The
remodeling of the Lifeguard Headquarters at the
Newport Pier is proceeding. The existing space will
be repurposed to accommodate a smaller staff
and (possibly) training rooms for the Junior Lifeguard
program and other needs.
rV