HomeMy WebLinkAbout28 - CJE & AWG Grant Requests0
December 13, 1999
Agenda Item # 28
CITY OF NEWPORT BEACH
OFFICE OF THE CITY COUNCIL
December 13, 1999
TO: Members of the City Council
FROM: Mayor John Noyes
Mayor Pro tem Gary Adams (AWG Liaison)
Council Member Norma Glover (CJE Liaison)
RE: Grant Requests
Citizens for Jobs and the Economy (CJE)
Airport Working Group (AWG)
CJE and AWG have each submitted grant requests to fund their ongoing efforts
to inform the public about the proposed commercial aviation reuse of El Toro.
We are recommending the City Council approve funding for CJE in the sum of
$750,000 and funding for AWG in the sum of $500,000. These grants would be
used to fund direct mail and community events during the remainder of this fiscal
year.
These two organizations have, for many years, communicated accurate
information to the public about the reuse planning process, the benefits of a
commercial aviation reuse and the consequences of a non - aviation reuse. AWG
and CJE have used recent grants to continue their public information efforts and,
in the process, produced informative literature that strictly complied with
guidelines established by this Council.
Our recommendations are contingent on compliance with the terms and
conditions of the grant agreement and the activity guidelines prepared by the
City Attorney. Compliance with the grant agreement and activity guidelines will
ensure that City funds are not used to support or opposed the passage or
qualification of a ballot measure or the election or defeat of any candidate. The
grant agreements authorize the City to conduct regular audits and the City
Manager has indicated that regular audits will be conducted. CJE and AWG
have expressed strong support for regular audits and legal counsel review of all
publications.
December 13, 1999
Page 2
The City Manager has indicated that the grant funds will come from a
combination of sources. The sources include $350,000 in reductions in General
Fund expenditures during the remainder of the fiscal year, $450,000 in
bankruptcy recovery disbursements (general fund only); and $450,000 in
anticipated General Fund revenues in excess of those estimated in the FY 99/00
budget.
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40
CITY OF NEWPORT BEACH
Administrative Services Department
Accounting - Revenue - Fiscal Services - Management Information Services
December 6, 1999
TO: HOMER BLUDAU, CITY MANAGER
FROM: Dennis Danner, Director of Administrative Services
SUBJECT: ADDITIONAL FUNDS FOR AIRPORT PROJECT
DISCUSSION:
The stated goal is to come up with another $1.25 million for the airport project. Dick and
I brainstormed this with input from Don Webb and Gail Olsen, but we haven't discussed
it with anyone else. We came up with seven categories from which funding could
potentially be generated. They are listed below.
ALTERNATIVES:
. 1. New Revenue ($500,000). On average, revenue is coming in quite strong so far this
year. As you know, we receive a disproportionate percentage of revenue in the last half
of the fiscal year, so it is too early to tell for sure if this trend will continue. We will have
a better idea after the next two property tax payments (the 10th and 17'" of this month).
However, a rough estimate is that we could be under - budgeted in revenue by $500,000
overall.
2. Bankruptcy Distribution ($500,000). Not included in the above are bankruptcy
distribution proceeds. According to Paul Glassman, the attorney representing Cities in
the County Bankruptcy proceeding, distribution should be made within the next few
months. Our best estimate is that the City will receive approximately $2 million, of
which about 25% ($500,000) will be General Fund money. The year after the bankruptcy
took place, Newport Beach wrote off the entire amount in question as a loss. (Some
entities chose to carry the amount as some sort of receivable instead.) For that reason,
any money now received represents new revenue.
3. Hiring Freeze ($150,000). This is the only realistic potential action in the personnel
area that will generate material savings in a short period of time. If we were to impose an
across the board freeze for six months, a very rough projection of the funding that would
be preserved is $150,000. In addition to service level and workload considerations, the
primary problem with a hiring freeze is that it can cause imbalances in the organization.
Vacancies do not necessarily materialize in the positions most suitable to endure a "gap"
in staffing.
4. Reduction of Current Year Departmental Operating Expenditures ($250,000).
We estimate that $200,000 to $300,000 could be generated by reducing operating
expenditures for the remainder of the year. This includes the amount in Number 3 above,
but in this alternative we would leave it to the Departments to take the action. As long as
the base figure is restored prior to establishment of next year's departmental ceilings,
one -time reductions at this level would probably not cause too much difficulty.
a) Operatin¢ Budget. Cutting the budget in this area normally involves
establishment of a target number, then distributing a reduction among the
departments on a pro -rata basis. This is difficult, especially at this point in the
annual cycle. Whatever annual reduction is levied, departments would have to
absorb it in the half -year remaining. Simply on the basis of the timing of contract
renewals and other purchases, some departments will have already spent a larger
percentage of their overall budget than others. In addition, differences in existing
staff vacancies and operational requirements enable some departments to cope with
a reduction more easily than others. If this course of action is pursued, we should
set the number at a level that allows some flexibility in approving the special-case
exemptions that will undoubtedly be requested. However, if the Council decided to
fund the entire additional airport expenditures solely from reductions in
departments' operating budgets, 1.66% across the board reduction (3.24% over 6
months) would be required to generate $1.25 million.
b) Capital Outlay Budget. This also hits the departments' operating expenditures,
but in the area of equipment purchases. The timing issues mentioned above are
germane here as well. The overall budget is relatively small in this category
($595,000 Citywide).
5. Use the Contingency Reserve ($1,250,000). The City Council Policy Manual
directs that this Reserve be funded at one - twelfth of the annual operating budget ($6.2
million now). We achieved that level of funding for the first time last year. If the
Council decides that this is an event appropriate for use of Contingency funds, any or all
of the amount can simply be appropriated from that source. The problem will then be re-
constituting the Reserve from next year's budget.
6. Capital Project Postponements ($1,250,000). Don Webb put together a list of
potential Capital Project Program changes that would collectively generate $1,250,000 if
fully implemented. The list is attached. Note that some of the project changes would
require further inter -fund adjustments if implemented. For instance, Tideland funds
could not be spent on Airport issues.
From a management perspective (both public works and finance), these projects are the
ones that are the most appropriate to consider as a part of the plan to of addressing the
airport funding issue. However, some of these projects are of special interest to members
of the City Council, and delaying or reprogramming them will probably not be a
universally popular alternative. 0
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Salaries & Benefits
Operating Expenses:
AT & T Wireless (vendor #4383)
Airport Working Group (6182)
Alliance (6584)
Balboa Bay Club (0134)
Ball Janik LLP (2343)
Citizens for Jobs (M0800)
Express Mail (2147)
Foster, Barbara (5598)
Harbor Travel (4909)
OCRAA (Previously miscoded to Div 0110)
Orange County Airport Alliance (7442)
Pacific Bell
Peggy Ducey (7578)
Printers Litho Inc (5381)
Reed & Davidson (6608)
Right of Way Deliv (4586)
Sloat Higgins (7654)
Thurston, Gary (7624)
Tide Office Supplies (0524)
Wall & Associates (5953)
Petty Cash (0577)
Totals
Saved @ Act /Shared /airportexpenditure.xls
yeartodate worksheet
City of Newport Beach
Airport Growth Control Expenditures
1999 -00 YTD
December 2, 1999
Year -to -Date
Commited/
Current Year
Budget
Expenditure
Encumbered
Available
1,088,921
(66,370)
49
150,000
30,000
582
26,049
350,000
47
7,000
425
150,000
186,501
100,401
645
57,448
75,000
821
7,840
66
7,000
100
54
5,000
261
17088,921
979,890
175,401
(66,370)
40A - ME'
November 18, 1999
The Honorable Dennis O'Neil
The Honorable Gary Adams
The Honorable Norma Glover
City of Newport Beach
P.O. Box 1768
Newport Beach, CA 92658
SUBJECT: REQUEST FOR PHASE II GRANT FUNDING
Dear Dennis. Gary, and Norma:
At your July 12, 1999 meeting the city council granted $150,000 to the Airport Working
Group of Orange County, Inc. (AWG) for the purpose of developing an educational direct
mail program on the need for El Toro Airport. As the largest pro-El Toro grass roots
organization in Orange County. we are grateful for this grant and believe our message to
JWA corridor residents is well received.
We have judiciously used these funds and to date have mailed two flyers — each flyer
targeting 101,000 residents — within the John Wayne corridor cities.
We will mail one more educational piece in December to the same corridor residents.
The December mailer will exhaust the Phase I grant provided by the city.
Each of our mailings is coordinated with CJ&E and is targeted to a different universe.
The message in each mailer is driven by privately funded survey research and is
consistent with CJBE's.
In addition, AWG has embarked upon an aggressive grass -roots educational program
whereby we conduct community forums on the potential expansion of JWA in corridor
communities. Contained in our grant request is funding to continue this program.
We respectfully request a grant of $500,000 to continue our educational effort on the
need for El Toro Airport. We appreciate your past support of AWG and your continued
commitment to solving our regional air transportation crisis.
Finally, it should be noted that AWG continues to raise funds privately and the grant
funds we have requested will be dedicated to constituent contact.
Sin/cer ly,
Tom Naughton
President
Attachment
1045 Irvine Avenue • PMB :67 • J\letvoor; Beach • California • 92660 • (949) 224 5504
DEC -08-1999 10:05 P.02
• Gitiz®ns far Jolss Mk ttie E4ca&I4MW IV
d . \inn. rl'a Jlr f'o rNaraliva
November 30, 1999
The Honorable John E. Noyes, Jr.
City of Newport Beach
Newport Beach, CA 92658
• Dear Honorable Noyes:
Citizens for Jobs and Economy ( "CJ &E ") respectfully requests a grant of $850,000 in
support of our Community Outreach Project, which will promote the need and benefits of
commercial aviation reuse at MCAS El Toro. We understand and will comply with activity
guidelines issued by the City of Newport Beach.
• :aj
If you have any questions, please give me a call.
Sincerely,
George L. Argyos
Chairman, CJ &E
949 Sarllh Canal Urirr. Suilr 0640 a Caa-la Meta. CA 9 ?636
(714) 481.3474 Far (714).,v 91.8469