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HomeMy WebLinkAbout17 - Strategic Plan for Fiscal and Economic StabilityCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 17 July 24, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949-644 -3222, swood @city.newport- beach.ca.us SUBJECT: Strategic Plan for Fiscal and Economic Stability RECOMMENDATIONS: 1. Approve Strategic Plan for Fiscal and Economic Stability. 2. Approve a budget amendment transferring $350,000 from unappropriated General Fund Reserve to Account 2720 -8080 Economic Development Professional and Technical Services. DISCUSSION: The City Council discussed the draft Strategic Plan at two study sessions, on February 27 and July 10, 2007. At the latter meeting, the Council directed staff to place the plan, and a budget amendment for the consulting resources needed to implement it, on a regular City Council meeting for action. The attached report for the July 10 meeting provides a full discussion of the Strategic Plan and resources needed. Over a two -year period, the estimated cost for consulting services is $290,500 to $464,500. For the amendment to the 2007 -08 budget, staff has estimated the costs expected to be incurred in this fiscal year only. Most of the consultant services are to provide information needed to begin implementing programs such as business recruitment (e.g., market area reports, commercial property information, and market trend analysis). In addition, the parking consultant is needed immediately to assist in developing new regulations for the Zoning Code rewrite. Therefore, the bulk of the costs are likely to occur in the first year. Based on the range of costs estimated for these services, staff is recommending a budget amendment to provide $350,000 in the Economic Development Professional and Technical Services account. Strategic Plan for Fiscal and Economic Stability July 24, 2007 Page 2 Environmental Review: The City Council's approval of the Strategic Plan is exempt from CEQA pursuant to Section 15262 of the Guidelines, which exempts feasibility and planning studies for possible future actions which the agency has not approved. Future projects that implement the Strategic Plan will be subject to individual environmental review. Submitted by: Sharon Wood Assistant City Manager Attachments: City Council Staff Report, July 10, 2007 (without attachments) Strategic Plan for Fiscal and Economic Stability Budget Amendment CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. SS July 10, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949- 644 -3222, swood @city.newport - beach.ca.us SUBJECT: Draft Strategic Plan for Fiscal and Economic Stability ISSUE: Does the draft Strategic Plan reflect the City Council's goals and priorities for economic development, and is the level of resource commitment appropriate? RECOMMENDATION: Review the draft Strategic Plan and direct staff to place the plan, and a budget amendment for the consulting resources needed to implement it, on a regular City Council agenda for action. BACKGROUND: The Economic Development Committee (EDC) was first established by City Council Resolution No. 93 -3 in January 1993. Except for the seven broad functions and duties listed in the Resolution, there was no plan for economic development in Newport Beach. By March 1993, the City Council had adopted an Economic Development Policy. Between 1993 and 1997, the EDC accomplished a great deal, with some of the most significant items listed below. ■ Zoning and Subdivision Code amendments to provide more streamlined review of development applications and shortened appeal times ■ Service enhancement training for Planning, Building and Public Works staff ■ Formation of four Business Improvement Districts (BIDS) ■ Retail market study, with in -depth review of Balboa Village ■ Land Use Element amendment to add economic development policy ■ Coordination with Balboa Peninsula Planning Advisory Committee (BPPAC) on recommendations to revitalize the Peninsula, and monitoring of implementation ■ Conference Center feasibility study Draft Strategic Plan for Fiscal and Economic Stability July 10, 2007 Page 2 In 1998 -1999, the EDC and staff conducted a strategic planning process, without any consultant assistance. Some of the priorities from that effort have also been accomplished, such as centralizing and contracting out BID administration, Traffic Phasing Ordinance amendment, new sign regulations, Mariners' Mile Design Framework, and wayfinding sign program. However, staff and the EDC. have not been able to make significant progress on some long- standing economic development issues, such as upgrading the Campus tract portion of the Airport Area and attracting new tenants, preferably with year -round business, to older commercial areas, especially on the Balboa Peninsula. When the City Council decided to do a comprehensive update of the General Plan, they decided to prepare an economic development strategic plan concurrently with the General Plan. The consulting firm of Applied Development Economics (ADE) was retained, and developed a fiscal impact model, which was used to evaluate land use alternatives and the final land use plan. ADE also prepared studies of retail markets in Newport Beach and the economic and fiscal impacts of visitor serving uses and marine uses, Guiding Principles for Economic Development, and the first draft of the economic development strategic plan. A subcommittee of the Economic Development Committee (EDC) then worked with staff to complete the strategic plan, making it focused and action oriented. The City Council reviewed a draft of the Strategic Plan for Fiscal and Economic Sustainability on February 27, 2007, to provide policy direction to the EDC and staff before the plan was completed with specific actions, timeframes and resource requirements. The City Council noted two priorities for economic development when reviewing the earlier draft: helping existing good businesses to expand in Newport Beach, and establishing a process for inquiries from prospective businesses. Staff and the EDC have addressed both of these priorities in the current draft plan, and have provided details on actions, timelines and resources needed to implement the plan as presented. The EDC reviewed the Strategic Plan at their meeting of June 20, 2007, and recommended that the City Council approve the plan. DISCUSSION: The Strategic Plan for Fiscal and Economic Stability (Attachment 1) is Newport Beach's first formal, comprehensive economic development plan. It includes the eight goals reviewed by the City Council in February. Each goal has a number of objectives, some of which have been refined or added since February. New to this draft of the plan are specific action steps for each objective and a timeline for each action step. A flow chart showing the timelines for each action step, and the responsible staff, is provided as Attachment 2. Not only does this provide a graphic representation of when objectives are to be accomplished, but it also will assist us in tracking our progress and making Draft Strategic Plan for Fiscal and Economic Stability July 10, 2007 Page 3 any needed adjustments in the recommended annual review of the Strategic Plan by the City Council. Staff did not want to recommend a plan that the City could not implement, and we have also analyzed the staff and consultant resources that would be needed for implementation. Staff Resources Attachment 3 is a spreadsheet showing our estimate of Economic Development Division staff time needed to implement the Strategic Plan over the next two years. For most objectives and action steps, a number of hours for each month of activity is shown. (No staff time is shown for action steps that are the responsibility of other City departments, such as Harbor Resources or Public Works.) In some cases, the time is represented by an °R," representing a reserve of staff time. These are action items for which the staff commitment is unrelated to a specific action step, is unknown, or is out of the City's control and could require staff time when opportunities for economic development projects arise. The total reserve of staff time shown at the bottom of the spreadsheet is 25% of the total Economic Development Division professional staff time available. In addition to the 'R action items, this reserve also provides for the time that staff now spends to support the EDC and in an "ombudsman" role, assisting businesses who want to locate or expand in Newport Beach with information and assistance through the City's permitting process. The bottom rows of the spreadsheet provide a subtotal of Economic Development Division staff time needed to implement the Strategic Plan, the 25% reserve, and time for administration of the Community Development Block Grant and general administration (staff meetings, employee supervision, budgeting, etc.). The total projected staff need is then compared with the total staff hours available with two professional Economic Development staff positions (with adjustments for holidays and leave time). Based on the estimates in the spreadsheet, staff believes that we will be able to implement the Strategic Plan with existing staff resources, and we will fully utilize these resources for economic development. There are surplus hours projected towards the end of next fiscal year, but staff anticipates that those will be taken up by additional recruitment and business assistance activities if our programs are successful, or by future.projects requested by the EDC or City Council. While we have been operating without a formal economic development plan, the economic development program has not used all of our staff resources. This has provided some staffing flexibility and allowed us to use economic development staff for other projects, such as the Corona del Mar State Beach, Santa Ana Heights Equestrian Facility, Sign Code, Planning Department staffing analysis, Planning Department budget, and Planning Department Procedures and Policies Manual. While adopting and implementing the proposed Strategic Plan will not have any direct staff costs, it could Draft Strategic Plan for Fiscal and Economic Stability July 10, 2007 Page 4 have "opportunity costs" as the economic development staff will be less available for such miscellaneous assignments. Consultant Resources Several of the action steps outlined in the Strategic Plan require the use of consultants to provide information and analysis that will enable the City to achieve the plan's goals, especially in the areas of improving the business mix in older commercial area, and having an established process for responding to inquiries from businesses that wish to locate or expand in Newport Beach. The information gathering includes market area reports, recruitment materials and property and tenant information to target recruitment. In addition, the Economic Development Division website needs to be updated and expanded with new information. Cost estimates for these consulting services over the next two years are provided in Attachment 4. For one -time costs, the estimate ranges from $154,000 to $283,000, and ongoing costs are estimated at $136,500 to $181,500. Funding Availabilitv: The existing ongoing costs of the economic development program are $492,369, and funding in this amount is included in the 2007 -08 budget. The budget does not include funding for the consultant resources needed to implement the Strategic Plan. If the City Council so directs, staff will bring a budget amendment for this fiscal year's costs to a future meeting for action. Submitted by: Sharon Wood Assistant City Manager Attachments: 1. Draft Strategic Plan for Fiscal and Economic Stability 2. Timeline Flow Chart 3. Actions and Economic Development Staff Time Needed 4. Estimated Costs CITY OF NEWPORT BEACH (DRAFT) STRATEGIC PLAN FOR FISCAL AND ECONOMIC SUSTAINABILITY July, 2007 TABLE OF CONTENTS I. INTRODUCTION .......... .............. 3 The Visioning Process ................................................. ..............................3 II. STRATEGIC PLAN FOR FISCAL & ECONOMIC SU STAI N ABI L ITY ........................................................... ............................... 4 VISION STATEMENT ..................................................... ..............................4 THE ROLE OF THE CITY .............. 4 GOALS, OBJECTIVES AND ACTION PLANS .... ............................... G Goal 1: The City shall facilitate the revitalization of older commercialareas .................................................... ............................... G Goal 2: The City shall support business efforts to optimize retail sales capture .............................. .............................10 Goal 3: The City shall facilitate the development, attraction and retention of a variety of businesses that strengthen the vitality of the local economy, particularly businesses that capitalize on market and demographic changes and opportunities that emerge in key economic centers.......................................................................... .............................13 Goal 4: The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor ................................. .............................1G Goal 5: The City will enhance the boating services of NewportHarbor ........................................................ .............................22 Goal 6: The City shall support the careful expansion of visitor - serving businesses and facilities .... .............................24 Goal 7: The City will seek to minimize the economic impact of traffic congestion and will take affirmative steps to improve traffic flow ........................................... .............................2G Goal 8: The City will administer its development review and permitting processes in an efficient, solution oriented and customer friendly manner ......................... .............................29 NOTE ON ADDITIONAL REFERENCES .................... .............................32 Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 2 I I. INTRODUCTION The Strategic Plan for Fiscal and Economic Sustainability is designed to serve as a work program for the City Council, City staff, the City Economic Development Committee (EDC) and other civic leaders to promote and sustain fiscal and economic vitality in Newport Beach. It is intended, in part, as a companion document for the General Plan, to assist the City in implementing portions of the General Plan that affect economic development in the City. Beyond City land use and development policy, however, the Strategic Plan for Fiscal and Economic Sustainability includes goals and objectives to enhance the business climate in the City. The Strategic Plan for Fiscal and Economic Sustainability focuses on a shorter time frame than does the General Plan, since economic conditions and priorities can change more rapidly than do planning goals related to community character and land use patterns. The work program included here contemplates at most a five -year time horizon, and it is assumed that annual reviews of progress and re- assessments of priorities will be undertaken as a prelude to the City's annual budget process. The Visioning Process Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 3 Based on public input, a vision for the future of Newport Beach was developed by the citizen General Plan Advisory Committee (GPAC), which describes the City's desired `end state' and what the community hopes to have achieved by 2025. Under the heading, "Growth Strategy, Land Use and Development," the vision states in part, "[W]e have a conservative growth strategy that emphasizes residents' quality of fife — a strategy that balances the needs of the various constituencies and that cherishes and nurtures our estuaries, harbor, beaches, open spaces and natural resources. Development and revitalization decisions are well conceived and beneficial to both the economy and our character...." The process also ascertained the public's input on a range of more specific issues. There was broad community consensus on some economic issues, and more diverse opinion on others. The full detail of the vision developed by GPAC is contained in the report noted above. II. STRATEGIC .PLAN FOR FISCAL & ECONOMIC SUSTAINABILITY VISION STATEMENT Newport Beach shall maintain and enhance its local economy, a high quality of life, economic opportunities for its citizens and the sustained fiscal health of the City, while respecting and supporting the residential and waterfront character of the community and its natural resources and amenities. THE ROLE OF THE CITY An important purpose of this plan is to help focus limited City resources on activities that are most cost - effective and address squarely the City's priorities for economic development. The private sector is the primary engine for economic progress in Newport Beach. The City is fortunate to enjoy sustained periods of relative prosperity during which little government involvement is warranted beyond providing clear land use policies and an efficient, predictable entitlement process. It is also important for the City to Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 4 sustain economic and fiscal health throughout the ups and downs of the business cycle. Typically, cities can play a role in several areas to support economic development, as follows: 1. Land Use and Development Policy The City's main effort recently has been to update the General Plan, and the implementation of new land use and development policies in various areas of town will have a significant impact in supporting economic development. 2. Infrastructure 3. Incentives The City can offer incentives to development such as shared parking opportunities, in -lieu parking fees, tax - exempt financing, and sales tax sharing. These kinds of incentives can improve the market feasibility of desired kinds of improvement in the economic environment without necessarily requiring expenditures of existing public funds. Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 5 GOALS, OBJECTIVES AND ACTION PLANS The Strategic Plan for Fiscal and Economic Sustainability for the City of Newport Beach includes eight major goals for economic development in the City: • Goal 1: Facilitate revitalization of the City's older commercial areas; • Goal 2: Support efforts to optimize retail sales capture; • Goal 3: Facilitate the development of businesses that strengthen the vitality of the local economy; • Goal 4: Facilitate an economically viable and vital Newport Harbor; • Goal 5: Enhance the boating services of Newport Harbor; • Goal 6: Support careful expansion of visitor - serving businesses and facilities; • Goal 7: Seek methods to improve traffic flow and minimize the economic impact of traffic congestion; • Goal 8: Administer the development review and permitting processes in an efficient and customer friendly manner. The following discussion briefly outlines these goals, along with the more detailed objectives and implementation actions associated with each goal. Goal 1: The City shall facilitate the revitalization of older commercial areas Objective 1.1 — Improve the business mix of older commercial districts, especially regarding their resident serving usefulness, through improvement in the quality, breadth and sales tax generation of such areas, taken as a whole. Identified areas include Balboa Village and other Balboa Peninsula commercial districts, as well as Marine Avenue, Old Newport Boulevard and West Newport. Lead: Economic Development staff Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 6 I. Support: Business Improvement District Boards; Planning Commission; City Council; Planning Department staff; Chamber(s) of Commerce representatives; consultant support. Financial Resources: Staff time — approx. 400 hours annually (1/10 total E.D. staff time); Cost: approx. $50,000- 60,000 annually ($15,000- 20,000 per market area). Action Steps: 1. Contract with consulting firm to prepare specific reports for each commercial village and /or identified sub -area, utilizing existing and new data to provide research on commercial area market and purchasing trend detail. Firm should provide business attraction recommendations, contact information, and targeted retailer marketing packages. [Begin July, 2007 w/ stable commercial areas, and continue with areas in transition] 2. Prepare specific recruitment materials utilizing primary data provided by consultants, as well as materials shared by the Chambers of Commerce and other organizations. [Begin September, 2007 and Maintain] 3. Economic Development staff (jointly with Chamber staff) should begin new business recruitment program utilizing market area information and other shared resources. Recruitment targets should include, but not be limited to, retail leads for possible fit in commercial villages as developed by marketing consultant; those identified as retailers `spun off by The Irvine Company from their commercial centers; and/or those wishing to expand (as coordinated with Objective 2.2), or as retailers not desiring to be within a "shopping center." [Begin October, 2007 & Maintain] 4. Review /implement "vision" plans for Balboa Village, West Newport, the joint Cannery Village / Lido / McFadden area, and/or other areas as appropriate. [Beginning September, 2007] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 7 13 Obtective 1.2 — Mixed -Use Development: The City shall adopt flexible zoning regulations to implement General Plan mixed -use development policies in the commercial districts. Lead: Planning Department Support: Planning Commission, City Council Financial Resources: Included in Zoning Code re -write. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion July, 2008] Objective 1.3 — Parking Facilities: In cooperation with merchants and commercial property owners, the City shall establish a plan to facilitate the improvement of parking in specified areas. The City may use various mechanisms to facilitate this, e.g., public/private partnerships, tax exempt financing, parking management districts and /or in -lieu fees. Lead: Economic Development Staff Support: Administrative Services staff; Public Works Department staff; City Council Financial Resources: Staff time 400+ hours; largely dependent on establishment of in -lieu parking fee. Possible design and /or assessment district consulting engineers; Parking structure development could also rely on revenue bonds paid with fee revenues, though currently TBD. Action Steps: 1. Hire Parking Management consultant to review and update the parking standards and policies, including the potential implementation and possible impacts of market pricing; prepare a study of programs that encourage the development of shared use parking facilities; and identify and prioritize areas where parking facilities are needed or might be needed in the near future. [Begin July 2007] 2. Seek City Council input on and approval for the recommendations from the parking consultant effort, Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 8 lu including the establishment of an in -lieu fee. [Begin January, 2008] 3. Identify and implement high impact recommendations that can be quickly accomplished. Identify and implement high priority recommendations that need immediate initiation and . dedicated resources. [Completion July, 2008] Objective 1.4 — Business Association Liaison: The City shall continue to support, and participate in as appropriate, efforts of Business Improvement Districts (BIDS) and other business and /or property owner groups to complete improvements and other voluntary business support activities within their areas. Lead: Economic Development Staff Support: City Council; BID Boards of Directors & property owners group boards; City staff from: City Manager's Office, Fiscal Services Division, City Attorney's office, Planning, Public Works, General Services, and Utilities departments; BID Systems, Inc. staff, Chamber(s) of Commerce staff; various contractors annually Financial Resources: Staff time — approx. 400 hours annually (1/10 total E.D. staff time); $140,000 General Fund line item annually for BID matching funds and contract admin support; various General Fund contributions annually to public improvement projects and event support. Action Steps 1. Continue E.D. staff liaison programming with the City's four Business Improvement Districts, including (but not limited to): fiscal administration; activities support; BID renewal activities; contract assistance and oversight; public improvement program development and implementation; marketing /advertising support; coordination between business area improvement groups and the neighboring residential public. [Ongoing] Task A: E.D. staff and BID Systems, Inc. staff should prepare a BID 'past -due' assessment collection program for adoption by the City Council and amendment to the Municipal Code. [Begin July, 2007] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 9 16 2. Continue E.D. staff liaison programming with the Mariner's Mile Business Owners Association. [Ongoing] Obiective 1.5 — Campus Tract: With its proximity to the John Wayne Airport and the potential availability of larger sites, the City shall focus its initial planning efforts on opportunities for the Campus Tract area. Lead: Planning Department Staff Support: City Manager's Office; Economic Development Staff; Zoning Consultant Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 20081 Goal 2: The City shall support business efforts to optimize retail sales capture. Obiective 2.1 flexible zoning commercial development. — Commercial Zoning: The City shall adopt in support of General Plan policies for Lead: Planning Department staff Support: Planning Commission; City Council Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 10 1 �: Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] Objective 2.2 — Newport Center: The City shall facilitate efforts by Fashion Island and Newport Center to evolve their design and retail mix to capture maximum retail sales. Lead: Property owners Support: Planning Department staff and City Manager's Office staff. Financial Resources: Staff time to review proposals will be paid through development review fees. Action Steps: 1. Work with The Irvine Company, other property owners, the Planning Commission and City Council to ensure that the revised Planned Community for Fashion Island includes provisions to facilitate additional retail development and implements Design and Development policies in the General Plan Land Use Element. [May - December 2007] 2. Meet with The Irvine Company representatives quarterly to share information on sales tax generation of existing retail mix and review trends and possible changes. [Ongoing] Objective 2.3 — Airport Area: The City shall encourage and facilitate the development of attractive retail and commercial uses that maximize retail sales capture in the Airport Area, commensurate with new General Plan land use designations and policies related to mixed use and residential development. Lead: Planning Department staff Support: Economic Development staff; City Manager's Office staff; Property owners. Financial Resources: Staff time — approx. 100 -200 hours annually. If a large project with a need for additional project Strategic Plan For Fiscal & Economic Sustainablliry July 18, 2007 Draft Page 11 management is needed, significant additional staff hours may be needed. Staff time to review proposals will be paid through development review fees. Action Steps: Economic Development staff will meet with property owners and developers as they come in with projects and provide appropriate guidance and assistance to achieve General Plan goals, focused on encouraging sales tax generation and capture in mixed use as well as commercial projects [Ongoing]. Objective 2.4 — Auto Sales: development of auto sales maximizing sales tax capture. Lead: City Manager's Office The City shall encourage the facilities as a means of Support: Economic Development Staff; development review departmental staff; City Attorney's Office staff Financial Resources: TBD, as proposals are made to the City. Action Steps: Staff of the City Manager's Office will continue to coordinate with various property owners, and representatives of the automotive sales & development industry for this effort, and will provide feedback to the EDC on progress made. [Ongoing] Objective 2.5 — Performance Indicators: The City shall improve its ability to track retail trends within Newport Beach by contracting for a more comprehensive sale tax audit service and by providing regular reports to the City Council and the EDC on sales tax performance by sub -area and business type. Lead: Revenue Division staff Support: Economic Development staff; consultants Financial Resources: No new external cost may result if no additional consultant contracts are involved, though a review of additional reporting may necessitate minor additional resources. Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 12 IR Action Steps: 1. Economic Development staff should work with Revenue Manager and MRA to determine current effective value of existing reporting tools for retail performance trend analysis, including allocation audits, trends analysis, and tax increment verification. [July- August, 2007] 2. If existing tools are unsatisfactory, contract with new firm to establish a useable matrix for trend analysis and report generation by business type, commercial sub -area; provide additional analysis; and reports that can be provided to the EDC and Council. [Begin April, 2008 and ongoing] Goal 3: The City shall facilitate the development, attraction and retention of a variety of businesses that strengthen the vitality of the local economy, particularly businesses that capitalize on market and demographic changes and opportunities that emerge in key economic centers. Obiective 3.1 — Master Plan for the West Newport Mesa Area: work with property owners to develop a master plan for properties that are related to and support Hoag Hospital including medical, medical- supporting, commercial, residential and industrial uses. Lead: Planning Department staff Support: City Council; Economic Development staff Financial Resources: Consulting services will be required, with services estimated at $50,000- 75,000. Staff time is estimated at 550+ hours during a likely 2 -year lifespan for the project. Action Steps: 1. Meet with property owners to update them on General plan provisions and Hoag plans, and ascertain interest in participating in joint planning effort. [Begin April, 2008] 2. If property owners are supportive, circulate RFP and retain consultant to prepare master plan. [Begin May, 2008] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 13 la 3. Work with consultant and representative property owners to develop master plan, including opportunities for input from all property owners. [Begin July, 2008] 4. Present master plan to Planning Commission and City Council for review and approval. [Completion April, 2009] Obiective 3.2 — Flexible Zoning: The City shall implement Zoning Code reform to expand the definition of non- residential uses and to create flexibility in its zoning code to allow projects representing innovative market or development opportunities to proceed with fewer restrictions. Lead: Planning Department Staff Support: Planning Commission; City Council Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] EDC should review and papers produced by the [July 2007 - January, 20081 provide comment on issue GPIC regarding this issue. Obiective 3.3 — Business Assistance Clearinghouse: The City shall coordinate with the Newport Beach Chamber of Commerce to establish a business assistance clearinghouse and business outreach program to help facilitate new business ventures and business expansions in Newport Beach. This Objective should be coordinated with efforts resulting from Objective 1.1. Lead: Newport Beach Chamber of Commerce staff Support: Staff from Economic Development, Fiscal Services, City Manager's Office; leadership from other local businesses Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 14 Financial Resources: Website: approximately $5,000 in first year, with updates as required. Subscription real estate services: approximately $8,000 annually. Information Package: approximately $2,500- 5,000. ($18,000 max. total) Action Steps: 1. Update City's website to provide additional resources on -line; using coordinated business clearinghouse and focused economic development information tailored to Newport Beach (example: www.onlyinirvine.com). [Begin January 2008 - Completion July, 2008] 2. Contract for subscription -based commercial real estate information database services, in order to provide potential property buyers and /or tenants with up -to -date information about the smaller, individually - owned and marketed commercial properties. [Beginning July, 2007 and ongoing]. 3. Working with the city's two Chambers of Commerce, the Newport Beach Conference & Visitors Bureau (CVB), the Business Improvement Districts and The Irvine Company to maximize the coordinative effort and to avoid duplication of services, design and update an informational package for distribution to small -to- mid -sized business, with information such as business base data, related news articles, and available lease space within the City. Such information should be available both on -line and in print form. This program should utilize 'desktop' and 'on- demand' publishing methods to minimize ongoing costs. [Begin March, 2008] Oblective 3.4 — Leading Indicators: The City shall provide annual reports on business establishments and employment changes by detailed business types to the City Council and the EDC for the purpose of tracking business development trends in the City. The City will address employment and business trends through the use of State of California EDD data updates Lead: Economic Development staff Support: Consultant support Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 15 -a� Financial Resources: Economic / Employment Trend analysis & reporting: approximately $17,500 annually. Action Steps: 1. Contract for services with a southern California economic who will utilize additional data memoranda to compile, ar reports to staff, the EDC, an( leading economic indicators. 2008] firm experienced in and market analysis, load and interpretive alyze, and provide the City Council on [Beginning January, Objective 3.5 — Provide reports to the EDC and City Council on program targets and effectiveness on semi - annual basis. [Beginning October, 2007] Include annual update as part of Economic Development Report to City Council. EDC should provide recommendations, based on Objective 2.5, 3.4, and as part of annual Economic Development Report, to the City Council regarding new programming and/or resources (financial, staff, etc.) necessary to recruit, retain, and /or expand targeted retail sales tax - producing businesses. [Beginning January, 20081. 2. Establish regular schedule (quarterly and /or semi- annually, as determined) of reporting to EDC in order to establish practice of retail trend analysis that will (in coordination with Objective 1.1) focus recruitment, expansion and retention . efforts. [Beginning January, 2008] Objective 3.6 — Maintain and utilize a fiscal impact model to assist the City in making land use and development decisions that benefit the City. Lead: Economic Development staff Support: Revenue Division, Planning Department, and consultant support Financial Resources: Ongoing Action Steps: 1. Develop procedures for regular update and use of the fiscal impact model. [Completion September 2007] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 16 2. Establish thresholds for projects that require fiscal impact analysis. [Completion January 20081 3. Update model annually. [Ongoing] Objective 3.7 — Economic Development Policy: The City Council, with the assistance of its Economic Development Committee and staff, shall revisit and update its established Policy regarding Economic Development, to reflect the present fiscal and economic needs and values of the City. The updated policy shall take into account the provisions and priorities included in this document. Lead: City Council and Economic Development staff Support: Economic Development Committee Financial Resources: No new resources are required to implement this Objective. Action Steps: 1. EDC should appoint a subcommittee to draft revisions. [Completion August, 2007] 2. EDC should make recommendations of revisions to the City Council. [Completion December, 2007] 3. City Council should take action on recommendations. [January, 2008] Objective 3.8 — Economic Development Committee Structure: The EDC shall explore restructuring opportunities that better reflect the current makeup of the local economy, and that would provide the expertise and flexibility to implement the goals and objectives of this plan. Restructuring should also pay particular attention to the effective and efficient utilization of volunteers serving on this Council- appointed committee and their time. Lead: Economic Development Committee members and Economic Development staff Support: City Council Financial Resources: No new resources are required to implement this Objective. Strategic Plan For Fiscal & Economic Sustainability MY 18, 2007 Draft Page 17 Action Steps: 1. EDC should appoint a subcommittee to draft revisions. [Completion August, 2007] 2. EDC should make recommendations of revisions to the City Council. [Completion December, 2007] 3. City Council should take action on recommendations. [January, 2008] Goal 4: The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor. . Objective 4.1 — Water - Dependent Marine Businesses: The City shall implement land use and related zoning regulations to encourage the preservation of water dependent marine business uses as re- development occurs over time. Lead: Planning Department staff Support: Consultant(s) Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] Objective 4.2 — Non - Water - Dependent Marine Businesses: The City shall implement land use and related zoning regulations by [June, 2008] to provide for the preservation of existing non -water dependent marine businesses in the West Newport Mesa area, as well as development of incentives to facilitate the relocation of such businesses to that area from economically unsustainable water front locations. Lead: Planning Department staff Support: Consultant(s) Strategic Plan For Fiscal & Economic Sustainabiliry July 18, 2007 Draft Page 18 "i Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] Lead: Harbor Resources Division staff Support: Harbor Commission, Bay Issues Committee, City Council Financial Resources: Lobby Federal funds to be appropriated to the Army Corps of Engineers and /or local funding with reimbursement from the Corps at a later date. Action Steps: 1. Harbor Resources Staff, City Manager's Office, and City Council members will agree upon an Advocacy Strategy for LNB Dredging by July 2007. The Advocacy Strategy's focus shall be twofold — (1) seek $11 million in the Federal FY 2009 Budget and (2) seek re- programming of funds from other delayed Corps projects to the LNB Project as soon as practicable. Advocacy involves direct communication with the Corps, our federal representatives, and other watershed partners. [Begin July, 2007 and ongoing] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 19 2. Harbor Resources Staff shall prepare the LNB project for construction (pending funding and concurrent with Action Step #1) by applying for and receiving all required permits, including by addressing toxicity issues in the LNB (pyrethroids, heavy metals) with consultants' contracts. [Begin October, 2007 and ongoing] Oblective 4.4 — Regulatory Compliance: As part of its business assistance program, the City shall assist water - dependent businesses with information and City programs to aid businesses adjacent to the Harbor in complying with state and federal regulations pertaining to water quality, among others. Lead: Harbor Resources Division staff Support: Harbor Commission, Bay Issues Committee Financial Resources: Every five years, the City's Budget includes about $500,000 to complete the testing, monitoring, and applications required each time the City renews a US Army Corps of Engineers- issued Regional General Permit (RGP 54) that allows small maintenance dredging projects. These projects benefit pier owners and provide sand for beach replenishment. The City's Harbor Resources staff also serves as the first stop in processing many on -water Coastal Development Permits and Building Permits. Action Steps: 1. Renew RGP -54 on preparing for its renewal expiration. [Ongoing] a routine basis, including 2 -3 years in advance of its 2. Budget for studies and testing required during each renewal. Apply all or a portion of the cost of RGP 54's tests and studies to Harbor fees, at a percentage of cost recovery directed by City Council. [Ongoing] 3. Challenge and contest regulatory directives that the City views as being onerous, including the 1991 Southern California Eelgrass Mitigation Policy. [Completion September, 2007] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 20 4. Seek State and federal funding for the remediation of toxic hotspots in the LNB, including the Rhine Channel. [Completion August, 2007] 5. Ensure that all watershed partners, including upstream cities, appropriately fund water quality improvements in the Bay where upstream actions are directly or indirectly responsible for Bay impairments. [Ongoing] 6. Develop and continuously update an electronic and paper version of a Bay Users Handbook that instructs businesses and residents as to regulations, permit steps, and other helpful information. [Ongoing] Obiective 4.5 – The City will invite proposals for the implementation of a privately owned and operated summer water transportation service, with funding supplemented by grants, private, contributions and public monies. Research should be conducted into the transferability of existing models in Los Angeles County and other areas. Lead: Economic Development staff Support: Harbor Resources Division staff, Harbor Commission Financial Resources: Public/Private partnership Action Steps: 1. Economic Development staff will research successful small - harbor, summer -only private (or public/private) water transportation services that may be suitable models for implementation in Newport Beach. [April - June, 2008] 2. A committee of interested individuals from the EDC, Harbor Commission, and the local maritime and tourism industry will be formed to develop and champion —with staff assistance as required — strategies, find funding methods and sources, and review proposals for implementation. [Beginning June, 2008] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 21 7`I Goal 5: The City will enhance the boating services of Newport Harbor. Objective 5.1 — The City will develop or convert at least 40 additional guest boat slips, and annually study the demand for additional guest slips. Lead: Harbor Resources Division staff / Public Works staff Support: Harbor Commission Financial Resources: CIP funding of the design and construction of the Marina Park Project Action Steps: 1. Design and construct a visitor - serving marina at Marina Park. [Completion, 2010] Obiective 5.2 — Where feasible, the City will develop more capacity for tying up small boats at the Balboa Village area, Balboa Island area, Marinapark, the Rhine Channel area and the Mariner's Mile area. Lead: Harbor Resources staff / Public Works staff Support: Harbor Commission, Community volunteers Financial Resources: CIP budget request for design and construction Action Steps: 1. Design and construct a guest dock at Marina Park. [Completion, 2010] 2. Design and construct a guest dock at the Rhine Wharf. [Completion by November, 20071 3. Design and construct public dock access improvements at the Fernando Street, 15th Street and 19th Street public docks. [Completion, June, 2008] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 22 4. Regularly review existing Municipal Code so that public dock tie -up times on existing public docks maximize the ability of visitors and residents to use public docks for short-term stays (shopping, dining). [Ongoing] Objective 5.3 — The City will review its dingy docking regulations annually to provide docking spaces for temporary docking which best suit the needs of the boating public. Lead: Harbor Resources Division staff Support: Orange County Sheriffs Harbor Patrol staff Financial Resources: City /County staff manpower 100 hours annually each. Action Steps: 1. Annually review Dinghy Docking Regulations. [Ongoing] Objective 5.4— The City will develop a policy that allows visiting boaters to leave their boats unattended at anchor for some period of time. Such policy will be subject to annual review. Lead: Harbor Resources Division staff /Orange County Sheriffs Harbor Patrol Support: None Financial Resources: City/County manpower 10 hours annually each Action Steps: 1. Design and construct a guest dock at Marina Park. [Completion, 2010] 2. Design and construct a guest dock at the Rhine Wharf. [Completion by November, 2007] 3. Design and construct public dock access improvements at the Fernando Street, 15th Street and 19 h Street public docks. [Completion, June, 2008] 4. Regularly review existing Municipal Code so that public dock tie -up times on existing public docks maximize the ability of visitors and residents to use Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 23 �A public docks for short-term stays (shopping, dining). [Ongoing] Goal 6: The City shall support the careful expansion of visitor - serving businesses and facilities. . Objective 6.1 — Small Scale Lodging: The City shall identify an economically feasible program for encouraging the development of small scale lodging and bed and breakfast establishments in Newport Beach, including existing barriers to their establishment, and potential incentives to encourage such development consistent with the General Plan policies. Lead: Economic Development and Planning Department Staff Support: City Council; Zoning Consultant. Financial Resources: Staff time — approx. 200 -300 hours. $4,000 48,000 for economic feasibility consultant. Action Steps: Research regulatory barriers to the development of small scale lodging and provide specific recommendations for zoning changes to the General Plan Implementation Committee for timely consideration. [Completion December, 2008] 2. Prepare an inventory of suitable areas and /or sites by type of lodging. [April, 2009] 3. Have consultants research the financial feasibility for various types of small scale lodging with either existing or revised regulations. [January- March, 2009] Obiective 6.2 — Vacation Rentals: The City shall review and revise its existing policies governing vacation rentals to acknowledge and enhance the economic benefit to the City of such establishments and recommend a program to maintain and enhance the quality level of short-term lodging. Lead: Planning Department Staff Support Revenue Division; Economic Development Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 24 3B Financial Resources: Staff time will be required for meetings and research. Action Steps: 1. Research regulations and policies that impact vacation rentals and propose revisions if. needed. [Completion September, 2007] 2. Help form organization to a) research existing models for vacation rental owner organizations and encourage the development of one in Newport Beach and b) assist the industry in developing a voluntary "Seal of Approval" program to encourage and promote high quality vacation rentals. [April -June, 2008] Oblective 6.3 — Marketing and Promotion: The City shall continue its strong relationship with the Newport Beach Conference and Visitors Bureau to enhance the effectiveness of marketing and promotion undertaken by the City and the Bureau, in order to enhance the City's promotion to a worldwide audience. Lead: City Manager's Office Support: Staff from Economic Development, PIO office, Recreation & Senior Services, Planning, and Fiscal Services departments; CVB Board and staff and their membership; staff and /or volunteers from the events that the City and CVB jointly support. Financial Resources: Annual financial commitments from General Fund to the CVB, and the events and activities promoting the City; approximately 200+ hours annually of staff time. Action Steps 1. City Manager's Office staff should maintain and enhance existing relationship with the CVB to market and promote the City of Newport Beach; CVB staff should provide annual reports to the EDC and City Council on the strength of the tourism economy. [Ongoing] 2. The EDC should recommend to the City Council that they continue to: A) provide financial support; and B) Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 25 Al designate its staff liaison to the Newport Beach Film Festival on an annual basis. [Ongoing] 3. The City Council, through the City Manager and staff, should maintain and enhance existing relationships with annual events that generate economic value to the City; such as the Toshiba Golf Classic, the Taste of Newport event, the Newport Beach Film Festival. [Ongoing] Obiective 6.4 — Beach / Bay Activities Promotion: The City shall promote and encourage activities and events in and near the beaches and the bay that generate retail sales, e.g., boat shows, sports tournaments, etc., consistent with the Local Coastal Plan. Lead: Recreation & Sr. Svcs. Department Support: City Council; Harbor Commission; City Manager's Office; Recreation & Sr. Services staff; Harbor Resources Division staff; PIO office; Fire Department (Lifeguard Division) personnel; CVB staff; Chamber(s) of Commerce staff and volunteers; other organizations involved in these activities. Financial Resources: No additional resources needed at this time. Action Steps: 1. The Recreation and Senior Services Department staff should prepare and maintain a master calendar of events. [Ongoing] Goal 7: The City will seek to minimize the economic impact of traffic congestion and will take affirmative steps to improve traffic flow. Oblective 7.1 — Develop and implement a master plan to modernize traffic control systems and technology, to improve synchronization and improve traffic flow, throughout the City. Areas of concern include Pacific Coast Highway in Mariner's Mile, Newport Boulevard from 15th Street to the 55 Freeway in Costa Mesa (working cooperatively with that City), Jamboree Road, and on Balboa Peninsula along Newport Boulevard from Main Street to Pacific Coast Highway, as well as other roadways and intersections. Lead: Public Works Department staff Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 26 Support: City Council Transportation Subcommittee Financial Resources: As yet undetermined Action Steps: Retain consultant for first phase of traffic signal modernization program Complete Traffic Signal Communication Master Plan [Completion June 2007]. 3. Complete design of traffic signal system upgrades [Completion December 2007]. 4. Complete construction of upgrades to traffic signal controllers, and design and implement coordinated signal timing plans, Phase I [Completion June 2008]. Obiective 7.2 — In conjunction with its approved capital plan and annual budgeting process, the City will implement key roadway and intersection improvements identified in the General Plan Update. Lead: Public Works Department staff Support: City Council Transportation subcommittee; General Plan implementation subcommittee Financial Resources: As yet undetermined Action Steps: Retain consultant to update Fair Share Fee based on circulation system improvements in new General Plan [Beginning April 2007]. 2. City Council adoption of updated Fair Share Fee [August 2007]. 3. Design and construct improvements in General Plan. [In conjunction with development that causes need and provides funds for improvements] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 27 ?.1 Objective 7.3 — The City will strongly advocate the construction of the 19th Street Bridge, and other critical regional traffic improvements. Lead: City Manager Support: City Council Borders Subcommittee; Public Works Department staff Financial Resources: As yet undetermined Action Steps: As opportunities arise, work with the Orange County Transportation Authority (OCTA) and the Cities of Costa Mesa and Huntington Beach to facilitate construction of regional improvements. [Ongoing] Objective 7.4 — The City shall create a plan to encourage and foster the development of privately owned and operated alternative transportation services, such as bus shuttles, to service the various commercial, retail and recreation areas in Newport Beach, in at least partial substitution for additional parking, with funding supplemented by grants, private contributions, and public monies. Lead: Public Works Department staff Support: Economic Development staff Financial Resources: As yet undetermined Action Steps: Monitor the potential for grant funding and public private partnerships to make alternative transportation services feasible. [Ongoing] Objective 7.5 — The City shall work cooperatively with adjacent cities and jurisdictions to complete key roadway and traffic synchronization projects that will help improve the flow of traffic within the boundaries of Newport Beach. Lead: City Manager Support: City Council Borders Subcommittee; Public Works Department staff Financial Resources: $64,000 from settlement of IBC litigation. Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 28 34 Action Steps: 1. Using funds from IBC litigation settlement, complete study of impacts and circulation system improvements needed as a result of development in IBC. [February 2008) 2. As opportunities arise, work with the Orange County Transportation Authority (OCTA) and the Cities of Costa Mesa, Huntington Beach and Irvine to facilitate construction of regional improvements. [Ongoing] Goal 8: The City will administer its development review and permitting processes in an efficient, solution oriented and customer friendly manner. Objective 8.1 — The City will implement the recommendations of the Evaluation of the Development Review and Plan Checking Processes, dated August 2006, including the following: 1. Increased inter- departmental coordination; 2. Use of project managers with primary responsibility for major projects; 3. Full use of Permits Plus and /or other database systems; 4. Established performance standards for project review; 5. Adequate staffing to meet performance standards and serve the public counter; 6. Availability of up -to -date public information materials on application requirements and processes; 7. Standardization of plan check correction checklists to the maximum extent possible; Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 29 8. Increased quality control for outside plan check services; 9. Use of existing standard designs whenever possible, to minimize the need for project- specific engineering. Lead: Assistant City Manager Support: Staff of Planning, Building, Public Works, Fire and Utilities Departments Financial Resources: As yet undetermined Action Steps: 1. Assistant City Manager will coordinate with the staff of the Planning, Building, Public Works, Fire and Utilities departments to prioritize this Objective, and will provide feedback to the EDC on progress made. [Ongoing] Objective 8.2 — Staff will provide for enhanced communication with applicants, both earlier and more consistently throughout the process. Lead: Assistant City Manager Support: Staff involved in the development review process (Planning, Building, Public Works, Fire and Utilities departments). Financial Resources: No new resources needed at this time. Action Steps: 1. Assistant City Manager will coordinate with the staff of the Planning, Building, Public Works, Fire and Utilities departments to prioritize this Objective, and will provide feedback to the EDC on progress made. [Ongoing] Objective 8.3 — The City will assure that staff receives receive regular training on maintaining a high quality of customer service and positive attitude. Lead: City Manager's Office Support: All development review staff; staff from any department that regularly contact the public Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 30 3ti Financial Resources: As yet undetermined. Action Steps: 1. Assistant City Manager will coordinate with the staff of the Planning, Building, Public Works, Fire and Utilities departments to prioritize this Objective, and will provide feedback to the EDC on progress made. [Ongoing] Objective 8.4 — The City will write and approve Zoning Ordinance and other regulatory codes to make the process more streamlined. Lead: Planning Department Support: Planning Commission, City Council Financial Resources: No new resources needed at this time. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 31 NOTE ON ADDITIONAL REFERENCES To support the Visioning Process and to provide background material for the GPAC to consider in its development of policies to be included in the General Plan update, the City contracted with the firm of Applied Development Economics, Inc. (ADE) for studies related to current economics and future fiscal impacts. ADE prepared a commercial market study published in December 2002 entitled "Newport Beach General Plan Update Retail Commercial Market Analysis," and a fiscal impact analysis entitled "Fiscal Impact Analysis and Model, Newport Beach General Plan Update." published in revised form in January 2004. Please refer to the detailed reports cited above, in addition to the final General Plan Update adopted by the City Council on July 25, 2006, and ratified by the voters in November, 2006, for further background. Strategic Plan For Fiscal & Economic Sustainability July IS, 2007 Draft Page 32 3R City of Newport Beach NO. BA- 08BA -005 BUDGET AMENDMENT 2007 -08 AMOUNT: $s5a,000.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance �X Increase Expenditure Appropriations AND X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations for a Strategic Plan for Fiscal and Economic Stability. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Amount Fund Account Description Debit Credit 010 3605 General Fund - Fund Balance $350,000.00 ` REVENUE ESTIMATES (3609) Fund /Division Account Description EXPENDITURE APPROPRIATIONS (3603) Description Division Number 2720 Planning - Economic Development Account Number 8080 Services, Professional & Technical $350,000.00 Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number �nn ' Automatic System Entry. Signed: /��@Jt+t'C C - �eJi % �g c Financial Approval: Administ a Services Dire or Date Signed: d Administrative App val: City Manager to Signed: City Council Approval: City Clerk Date 0i91 t4 4 i C; • CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. SS 3 July 10, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949 - 644 -3222, swood @city.newport- beach.ca.us SUBJECT: Draft Strategic Plan for Fiscal and Economic Stability ISSUE: Does the draft Strategic Plan reflect the City Council's goals and priorities for economic development, and is the level of resource commitment appropriate? • RECOMMENDATION: Review the draft Strategic Plan and direct staff to place the plan, and a budget amendment for the consulting resources needed to implement it, on a regular City Council agenda for action. BACKGROUND: The Economic Development Committee (EDC) was first established by City Council Resolution No. 93 -3 in January 1993. Except for the seven broad functions and duties listed in the Resolution, there was no plan for economic development in Newport Beach. By March 1993, the City Council had adopted an Economic Development Policy. Between 1993 and 1997, the EDC accomplished a great deal, with some of the most significant items listed below. ■ Zoning and Subdivision Code amendments to provide more streamlined review of development applications and shortened appeal times Service enhancement training for Planning, Building and Public Works staff ■ Formation of four Business Improvement Districts (BIDS) ■ Retail market study, with in -depth review of Balboa Village • Land Use Element amendment to add economic development policy ■ Coordination with Balboa Peninsula Planning Advisory Committee (BPPAC) on .recommendations to revitalize the Peninsula, and monitoring of implementation • Conference Center feasibility study Draft Strategic Plan for Fiscal and Economic Stability July 10, 2007 Page 2 • In 1998 -1999, the EDC and staff conducted a strategic planning process, without any consultant assistance. Some of the priorities from that effort have also been accomplished, such as centralizing and contracting out BID administration, Traffic Phasing Ordinance amendment, new sign regulations, Mariners' Mile Design Framework, and wayfinding sign program. However, staff and the EDC have not been able to make significant progress on some long- standing economic development issues, such as upgrading the Campus tract portion of the Airport Area and attracting new tenants, preferably with year -round business; to older commercial areas, especially on the Balboa Peninsula. When the City Council decided to do a comprehensive update of the General Plan, they decided to prepare an economic development strategic plan concurrently with the General Plan. The consulting firm of Applied Development Economics (ADE) was retained, and developed a fiscal impact model, which was used to evaluate land use alternatives and the final land use plan. ADE also prepared studies of retail markets in Newport Beach and the economic and fiscal impacts of visitor serving uses and marine uses, Guiding Principles for Economic Development, and the first draft of the economic development strategic plan. A subcommittee of the Economic Development Committee (EDC) then worked with staff to complete the strategic plan, making it focused and action oriented. • The City Council reviewed a draft of the Strategic Plan for Fiscal and Economic Sustainability on February 27, 2007, to provide policy direction to the EDC and staff before the plan was completed with specific actions, timeframes and resource requirements. The City Council noted two priorities for economic development when reviewing the earlier draft: helping existing good businesses to expand in Newport Beach, and establishing a process for inquiries from prospective businesses. Staff and the EDC have addressed both of these priorities in the current draft plan, and have provided details on actions, timelines and resources needed to implement the plan as presented. The EDC reviewed the Strategic Plan at their meeting of June 20, 2007, and recommended that the City Council approve the plan. DISCUSSION: The Strategic Plan for Fiscal and Economic Stability (Attachment 1) is Newport.Beach's first formal, comprehensive economic development plan. It includes the eight goals reviewed by the City Council in February. Each goal has a number of objectives, some of which have been refined or added since February. New to this draft of the plan are specific action steps for each objective and a timeline for each action step. A flow chart showing the timelines for each action step, and the responsible staff, is provided as Attachment 2. Not only does this provide a graphic representation of when objectives are to be accomplished, but it also will assist us in tracking our progress and making N1 Draft Strategic Plan for Fiscal and Economic Stability July 10, 2007 • Page 3 any needed adjustments in the recommended annual review of the Strategic Plan by the City Council. Staff did not want to recommend a plan that the City could not implement, and we have also analyzed the staff and consultant resources that would be needed for .implementation. Staff Resources Attachment.3 is a spreadsheet showing our estimate of Economic Development Division staff time needed to implement the Strategic Plan over the next two years. For most objectives and action steps, a number of hours for each month of activity is shown. (No staff time is shown for action steps that are the responsibility of other City departments, such as Harbor Resources or Public Works.) In some cases, the time is represented by an "R," representing a reserve of staff time. These are action items for which the staff commitment is unrelated to a specific action step, is unknown, or is out of the City's control and could require staff time when opportunities for economic development projects arise. The total reserve of staff time shown at the bottom of the spreadsheet is 25% of the total Economic Development Division professional staff time available. In addition to the "R" action items, this reserve also provides for the time that staff now • spends to support the EDC and in an "ombudsman" role, assisting businesses who want to locate or expand in Newport Beach with information and assistance through the City's permitting process. The bottom rows of the spreadsheet provide a subtotal of Economic Development Division staff time needed to implement the Strategic Plan, the 25% reserve, and time for administration of the Community Development Block Grant and general administration (staff meetings, employee supervision, budgeting, etc.). The total projected staff need is then compared with the total staff hours available with two professional Economic Development staff positions (with adjustments for holidays and leave time). Based on the estimates in the spreadsheet, staff believes that we will be able to implement the Strategic Plan with existing staff resources, and we will fully utilize these resources for economic development. There are surplus hours projected towards the end of next fiscal year, but staff anticipates that those will be taken up by additional recruitment and business assistance activities if our programs are successful, or by future projects requested by the EDC or City Council. While we have been operating without a formal economic development plan, the economic development program has not used all of our staff resources. This has provided some staffing flexibility and allowed us to use economic development staff for other projects, such as the Corona del Mar State Beach, Santa Ana Heights Equestrian Facility, Sign Code, Planning Department staffing analysis, Planning Department budget, and Planning Department Procedures and Policies Manual. While adopting and implementing the proposed Strategic Plan will not have any direct staff costs, it could I Draft Strategic Plan for Fiscal and Economic Stability July 10, 2007 Page 4 • have "opportunity costs" as the economic development staff will be less available for such miscellaneous assignments. Consultant Resources Several of the action steps outlined in the Strategic Plan require the use of consultants to provide information and analysis that.will enable the City to achieve the plan's goals, especially in the areas of improving the business mix in older commercial area, and having an established process for responding to inquiries from businesses that wish to locate or expand in Newport Beach. The information gathering. includes market area reports, recruitment materials and property and tenant information to target recruitment. In addition, the Economic Development Division website needs to be updated and expanded with new information. Cost estimates for these consulting services over the next two years are provided in Attachment 4. For one -time costs, the estimate ranges from $154,000 to $283,000, and ongoing costs are estimated at $136,500 to $181,500. Funding Availability: The existing ongoing costs of the economic development program are $492,369, and funding in this amount is included in the 2007 -08 budget. The budget does not include funding for the consultant resources needed to implement the Strategic Plan. If the City • Council so directs, staff will bring a budget amendment for this fiscal year's costs to a future meeting for action. Submitted by: Sharon Wood Assistant City Manager Attachments: 1. Draft Strategic Plan for Fiscal and Economic Stability 2. Timeline Flow Chart 3. Actions and Economic Development Staff Time Needed 4. Estimated Costs 4 Attachment 1 CITY OF NEWPORT BEACH (DRAFT) 0 STRATEGIC PLAN FOR FISCAL AND ECONOMIC SUSTAINABILITY June, 2007 co TABLE OF CONTENTS 0 1. INTRODUCTION ............................................................... ............................... 3 The Visioning Process ................................................ ............................... 3 II. STRATEGIC PLAN FOR FISCAL & ECONOMIC SUSTAINABI LITY ........................................................... ............................... 4 VISION STATEMENT .................................................... ............................... 4 THEROLE OF THE CITY ............................................ ............................... 4 GOALS, OBJECTIVES AND ACTION PLANS .... ............................... 6 Goal 1: The City shall facilitate the revitalization of older commercialareas ................................:.................... ..............................6 Goal 2: The City shall support business efforts to optimize retail sales capture .............................. .............................10 Goal 3: The City shall facilitate the development, attraction and retention of a variety of businesses that strengthen the vitality of the local economy, particularly businesses that capitalize on market and demographic • '' changes and opportunities that emerge in key economic centers.......................................................................... .............................13 Goal 4: The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor ................................. .............................16 Goal 5: The City will enhance the boating services of Newport. Harbor ........................................................ .............................21 Goal 6: The City shall support the careful expansion of visitor - serving businesses and facilities .... .............................23 Goal 7: The City will seek to minimize the economic impact of traffic congestion and will take affirmative steps to improve traffic flow ........................................... .............................26 Goal 8: The City will administer its development review and permitting processes in an efficient, solution oriented .and customer friendly manner ....................... ...........................2928 NOTE ON ADDITIONAL REFERENCES .................... .........................3x,139 Strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 2 I. INTRODUCTION The Strategic Plan for Fiscal and Economic Sustainability is designed to serve as a work program for the City Council, City staff, the City Economic Development Committee (EDC) and other civic leaders to promote and sustain fiscal and economic vitality in Newport Beach. It is intended, in part, as a companion document for the General Plan, to assist the City in implementing portions of the General Plan that affect economic development in the City. Beyond City land use and development policy, however, the Strategic Plan for Fiscal and Economic Sustainability includes goals and objectives to enhance the business climate in the City. The Strategic Plan for Fiscal and Economic Sustainability focuses on a shorter time frame than does the General Plan, since economic conditions and priorities can change more rapidly than do planning goals related to community character and land use patterns. The work program included here contemplates at most a five -year time horizon, and it is assumed that annual reviews of progress and re- assessments of priorities will be undertaken as a prelude to the City's annual budget process. The Visioning Process Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 3 Based on public input, a vision for the future of Newport Beach was developed by the citizen General Plan Advisory Committee (GPAC), which describes the City's desired `end state' and what the community hopes to have achieved by 2025. Under the heading, "Growth Strategy, Land Use and Development," the vision states in part, "[w]e have a conservative growth strategy that emphasizes residents' quality of life — a strategy that balances the needs of the various constituencies and that cherishes and nurtures our estuaries, harbor, beaches, open spaces and natural resources. Development and revitalization decisions are well conceived and beneficial to both the economy and our character...." The process also ascertained the public's input on a range of more specific issues. There was broad community consensus on some economic issues, and more diverse opinion on others. The full detail of the vision developed by GPAC is contained in the report noted above. II. STRATEGIC PLAN FOR FISCAL & ECONOMIC SUSTAINABILITY • VISION STATEMENT Newport Beach shall maintain and enhance its local economy, a high quality of life, economic opportunities for its citizens and the sustained fiscal health of the City, while respecting and supporting the residential and waterfront character of the community and its natural resources and amenities. THE ROLE OF THE CITY An important purpose of this plan is to help focus limited City resources on activities that are most cost - effective and address squarely the City's priorities for economic development. The private sector is the primary engine for economic progress in Newport Beach. The City is fortunate to enjoy sustained periods of relative prosperity during which little government involvement is warranted beyond providing clear land use policies and an efficient, predictable entitlement process. It is also important for the City to Strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 4 G sustain economic and fiscal health throughout the ups and downs of the business cycle. Typically, cities can play a role in several areas to support economic development, as follows: 1. Land Use and Development Policy The City's main effort recently has been to update the General Plan, and the implementation of new land use and development policies in various areas of town will have a significant impact in supporting economic development. 2. Infrastructure 3. Incentives The City can offer incentives to development such as shared parking opportunities, in -lieu parking fees, tax - exempt financing, and sales tax sharing. These kinds of incentives can improve the market feasibility of desired kinds of improvement in the economic environment without necessarily requiring expenditures of existing public funds. Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 5 GOALS, OBJECTIVES AND ACTION PLANS The Strategic Plan for Fiscal and Economic Sustainability for the City of Newport Beach includes eight major goals for economic development in the City: • Goal 1: Facilitate revitalization of the City's older commercial areas; • Goal 2: Support efforts to optimize retail sales capture; • Goal 3: Facilitate the development of businesses that strengthen the vitality of the local economy; • Goal 4: Facilitate an economically viable and vital Newport Harbor; • Goal 5: Enhance the boating services of Newport Harbor; • Goal 6: Support careful expansion of visitor - serving businesses and facilities; • Goal 7: Seek methods to improve traffic flow and minimize • the economic impact of traffic congestion; • Goal 8: Administer the development review and permitting processes in an efficient and customer friendly manner. The following discussion briefly outlines these goals, along with the more detailed objectives and implementation actions associated with each goal. Goal 1: The City shall facilitate the revitalization of older commercial areas Objective 1.1 — Improve the business mix of older commercial districts, especially regarding their resident serving usefulness, through improvement in the quality, breadth and sales tax generation of such areas, taken as a whole. Identified areas include Balboa Village and other Balboa Peninsula commercial districts, as well as Marine Avenue, Old Newport Boulevard and West Newport. Lead: Economic Development staff Strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 6 0) in • Support: Business Improvement District Boards; Planning Commission; City Council; Planning Department staff; Chamber(s) of Commerce representatives; consultant support. Financial Resources: Staff time — approx. 400 hours annually (1/10 total E.D. staff time); Cost: approx. $50,000- 60,000 annually ($15,000- 20,000 per market area). Action Steps: 1. Contract with consulting firm to prepare specific reports for each commercial village and /or identified sub -area, utilizing existing and new data to provide research on commercial area market and purchasing trend detail. Firm should provide business attraction recommendations, contact information, and targeted retailer marketing packages. [Begin July, 2007 w/ stable commercial areas, and continue with areas in transition] 2. Prepare. specific recruitment materials utilizing • primary data provided by consultants, as well as materials shared by the Chambers of Commerce and other organizations. [Begin September, 2007 and Maintain] 3. Economic Development staff (jointly with Chamber staff) should begin new business recruitment program utilizing market area information and other shared resources. Recruitment targets should include, but not be limited to, retail leads for possible fit in commercial villages as developed by marketing consultant; those identified as retailers 'spun off by The Irvine Company from their commercial centers; and /or those wishing to expand (as coordinated with Objective 2.2), or as retailers not desiring to be within a "shopping center." [Begin October, 2007 & Maintain] 4. Review/implement "vision" plans for Balboa Village, West Newport, the joint Cannery Village / Lido / McFadden area, and /or other areas as appropriate. [Beginning September, 2007] Strategic Plan For Fiscal & Economic Sustainabllity June 29. 2007 Draft Page 7 fl Objective 1.2 — Mixed -Use Development: The City shall • adopt flexible zoning regulations to implement General Plan mixed -use development policies in the commercial districts. Lead: Planning Department Support: Planning Commission, City Council Financial Resources: Included in Zoning Code re- write. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion July, 2008] Objective 1.3 — Parking Facilities: In cooperation with merchants and commercial property owners, the City shall establish ,a plan to facilitate the improvement of parking in specified areas. The City may use various mechanisms to facilitate this, e.g., public /private partnerships, tax exempt financing, parking management districts and/or in -lieu fees. • Lead: Economic Development Staff Support: Administrative Services staff; Public Works Department staff; City Council Financial Resources: Staff time 400+ hours; largely dependent on establishment of in -lieu parking fee. Possible design and /or assessment district consulting engineers; Parking structure development could also rely on revenue bonds paid with fee revenues, though currently TBD. Action Steps: 1. Hire Parking Management consultant to review and update the parking standards and policies, including the potential implementation and possible impacts of market pricing; prepare a study of programs that encourage the development of shared use parking facilities; and identify and prioritize areas where parking facilities are needed or might be needed in the near future. [Begin July 2007] 2. Seek City Council input on and approval for the recommendations from the parking consultant effort,, Strategic Plan For Fiscal & Economic Sustainablllty June 29, 2007 Draft Page 8 11 • r� LJ including the establishment of an in -lieu fee. [Begin January, 2008] 3. Identify and implement that can be quickly implement high priority immediate initiation [Completion July, 2008] high impact recommendations accomplished. Identify and recommendations that need and dedicated resources. Objective 1.4 — Business Association Liaison: The City shall continue to support, and participate in as appropriate, efforts of Business Improvement Districts (BIDS) and other business and /or property owner groups to complete improvements and other voluntary business support activities within their areas. Lead: Economic Development Staff Support: City Council; BID Boards of Directors & property owners group boards; City staff from: City Manager's Office, Fiscal Services Division, City Attorney's office, Planning, Public Works, General Services, and Utilities departments; BID Systems, Inc. staff, Chamber(s) of Commerce staff; various contractors annually Financial Resources: Staff time — approx. 400 hours annually (1/10 total E.D. staff time); $140,000 General Fund line item annually for BID matching funds and contract admin support; various General Fund contributions annually to public improvement projects and event support. Action Steps: Continue E.D. staff liaison programming with the City's four Business Improvement Districts, including (but not limited to): fiscal administration; activities support; BID renewal activities; contract assistance and oversight; public improvement program development and implementation; marketing /advertising support; coordination between business area improvement groups and the neighboring residential public. [Ongoing] Task A: E.D. staff and BID Systems, Inc. staff should prepare a BID 'past -due' assessment collection program for adoption by the City Council and amendment to the Municipal Code. [Begin July, 2007] Strategic Plan For Fiscal & Economic Sustainabiliry June 29, 2007 Draft Page 9 fx 2. Continue E.D. staff liaison programming with the Mariner's Mile Business Owners Association. [Ongoing] Obiective 1.5 — Campus Tract: With its proximity to the John Wayne Airport and the potential availability of larger sites, the City shall focus its initial planning efforts on opportunities for the Campus Tract area. Lead: Planning Department Staff Support: City Manager's Office; Economic Development Staff; Zoning Consultant Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] Goal 2: The City shall support business efforts to optimize retail sates capture. Obiective 2.1 — Commercial Zoning: The City shall adopt flexible zoning in support of General Plan policies for commercial development. Lead: Planning Department staff Support: Planning Commission; City Council Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Strategic Plan For fiscal & Economic Sustainability July 18, 2007 Draft Page 10 t �. • Action Steps: Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] Oblective 2.2 — Newport Center: The City shall facilitate efforts by Fashion Island and Newport Center to evolve their design and retail mix to capture maximum retail sales. Lead: Property owners Support: Planning Department staff and City Manager's Office staff. Financial Resources: Staff time to review proposals will be paid through development review fees. Action Steps: 1. Work with The Irvine Company, other property • owners, the Planning Commission and City Council to ensure that the revised Planned Community for Fashion Island includes provisions to facilitate additional retail development and implements Design and Development policies in the General Plan Land Use Element. [May - December 2007] 2. Meet with The . Irvine Company representatives quarterly to share information on sales tax generation of existing retail mix and review trends and possible changes. [Ongoing] Objective 2.3 — Airport Area: The City shall encourage and facilitate the development of attractive retail and commercial uses that maximize retail sales capture in the Airport Area, commensurate with new General Plan land use designations and policies related to mixed use and residential development. Lead: Planning Department staff Support: Economic Development staff, City Manager's Office staff, Property owners. Financial Resources: Staff time — approx. 100 -200 hours annually. If a large project with a need for additional project Strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 11 [C) management is needed, significant additional staff hours • may be needed. Staff time to review proposals will be paid through development review fees. Action Steps: 1. Economic Development staff will meet with property owners and developers as they come in with projects and provide appropriate guidance and assistance to achieve General Plan goals, focused on encouraging sales tax generation and capture in mixed use as well as commercial projects [Ongoing]. Objective 2.4 — Auto Sales: The City shall encourage the development of auto sales facilities as a means of maximizing sales tax capture. Lead: City Manager's Office Support: Economic Development Staff, development review departmental staff; City Attorney's Office staff Financial Resources: TBD, as proposals are made to the City. • Action Steps: 1. Staff of the City Manager's Office will continue to coordinate with various property owners, and representatives of the automotive sales & development industry for this effort, and will provide feedback to the EDC on progress made. [Ongoing] Objective 2.5 — Performance Indicators: The City shall improve its ability to track retail trends within Newport Beach by contracting for a more comprehensive sale tax audit service and by providing regular reports to the City Council and the EDC on sales tax performance by sub -area and business type. Lead: Revenue Division staff Support: Economic Development staff; consultants Financial Resources: No new external cost may result if no additional consultant contracts are involved, though a review of additional reporting may necessitate minor additional resources. Action Steps: Strategic Plan For Fiscal & Economic Sustainability _ June zg, 2007 Draft Page 12 10 • 1. Economic Development staff should work with Revenue Manager and MRA to determine current effective value of existing reporting tools for retail performance trend analysis, including allocation audits, trends analysis, and tax increment verification. [July- August, 2007] 2. If existing tools are unsatisfactory, contract with new firm to establish a useable matrix for trend analysis and report generation by business type, commercial sub -area; provide additional analysis; and reports that can be provided to the EDC and Council. [Begin April, 2008 and ongoing] Goal 3: The City shall facilitate the development, attraction and retention of a variety of businesses that strengthen the vitality of the local economy, particularly businesses that capitalize on market and demographic changes and opportunities that emerge in key economic centers. • 9blective 3.1 — Master Plan for the West Newport Mesa Area: work with property owners to develop a master plan for properties that are related to and support Hoag Hospital including medical, medical- supporting, commercial, residential and industrial uses. Lead: Planning Department staff Support: City Council; Economic Development staff Financial Resources: Consulting services will be required, with services estimated at $50,000- 75,000. Staff time is estimated at 550+ hours during a likely 2 -year lifespan for the project. Action Steps: 1. Meet with property owners to update them on General plan provisions and Hoag plans, and ascertain interest in participating in joint planning effort. [Begin April, 20081 2. If property owners are supportive, circulate RFP and retain consultant to prepare master plan. [Begin May, 2008] Strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 13 11 3. Work with consultant and representative property • owners to develop master plan, including opportunities for input from all property owners. [Begin July, 2008] 4. Present master plan to Planning Commission and City Council for review and approval. [Completion April, 2009] Objective 3.2 — Flexible Zoning: The City shall implement Zoning Code reform to expand the definition of non- residential uses and to create flexibility in its zoning code to allow projects representing innovative market or development opportunities to proceed with fewer restrictions. Lead: Planning Department Staff Support: Planning Commission; City Council Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 20081 2. EDC should review and provide comment on issue papers produced by the GPIC regarding this issue. [July 2007 - January, 2008] Obiective 3.3 — Business Assistance Clearinghouse: The City shall coordinate with the Newport Beach Chamber of Commerce to establish a business assistance clearinghouse and business outreach program to help facilitate new business ventures and business expansions in Newport Beach. This Objective should be coordinated with efforts resulting from Objective 1.1. Lead: Newport Beach Chamber of Commerce staff Support: Staff from Economic Development, Fiscal Services, City Manager's Office; leadership from other local businesses Strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 14 • •'I I • Financial Resources: Website: approximately $5,000 in first year, with updates as required. Subscription real estate services: approximately $8,000 annually. Information Package: approximately $2,500 - 5,000. ($18,000 max. total) Action Steps: 1. Update City's website to provide additional resources on -line; using coordinated business clearinghouse and focused economic development information tailored to Newport Beach (example: www.onlyinirvine.com). [Begin January 2008 - Completion July, 20081 2. Contract for subscription -based commercial real estate information database services, in order to provide potential property buyers and /or tenants with up -to -date information about the smaller, individually - owned and marketed commercial properties. [Beginning July, 2007 and ongoing]. 3. Working with the city's two Chambers of Commerce, • the Newport Beach Conference & Visitors Bureau (CVB), the Business Improvement Districts and The Irvine Company to maximize the coordinative effort and to avoid duplication of services, design and update an informational package for distribution to small -to -mid -sized business, with information such as business base data, related news articles, and available lease space within the City. Such information should be available both on -line and in print form. This program should utilize 'desktop' and 'on- demand' publishing methods to minimize ongoing costs. [Begin March, 2008] Objective 3.4 — Leading Indicators: The City shall provide annual reports on business establishments and employment changes by detailed business types to the City Council and the EDC for the purpose of tracking business development trends in the City. The City will address employment and business trends through the use of State of California EDD data updates Lead: Economic Development staff Support: Consultant support s'0 Strategic Plan For Fiscal & Economic Sustainabiliry June 29, 2007 Draft Page 15 �n Financial Resources: Economic / Employment Trend • analysis & reporting: approximately $17,500 annually. Action Steps: Contract for services with a firm experienced in southern California economic and market analysis, who will utilize additional data load and interpretive memoranda to compile, analyze, and provide reports to staff, the EDC, and the City Council on leading economic indicators. [Beginning January, 2008] Obiective 3.5 — Provide reports to the EDC and City Council on program targets and effectiveness on semi - annual basis. [Beginning October, 2007] Include annual update as part of Economic Development Report to City Council. EDC should provide recommendations, based on Objective 2.5, 3A, and as part of annual Economic Development Report, to the City Council regarding new programming and /or resources (financial, staff, etc.) necessary to recruit, retain, and /or • expand targeted . retail sales tax - producing businesses. [Beginning January, 2008] 2. Establish regular schedule (quarterly and /or semi - annually, as determined) of reporting to EDC in order to establish practice of retail trend analysis that will (in coordination with Objective 1.1) focus recruitment, expansion and retention efforts. [Beginning January, 2008] Objective 3.6 — Maintain and utilize a fiscal impact model to assist .the City in making land use and development decisions that benefit the City. Lead: Economic Development staff Support: Revenue Division, Planning Department, and consultant support Financial Resources: Ongoing Action Steps: 1. Develop procedures for regular update and use of the fiscal impact model. [Completion September 2007] Strategic Plan For Fiscal & Economic Sustainability June 29. 2007 Draft Page 16 Um • 2. Establish thresholds for projects that require fiscal impact analysis. [Completion January 2008] 3. Update model annually. [Ongoing] Objective 3.7 — Economic Development Policy: The City Council, with the assistance of its Economic Development Committee and staff, shall revisit and update its established Policy regarding Economic Development, to reflect the present fiscal and economic needs and values of the City. The updated policy shall take into account the provisions and priorities included in this document. Lead: City Council and Economic Development staff Support: Economic Development Committee Financial Resources: No new resources are required to implement this Objective. Action Steps: 1. EDC should appoint a subcommittee to draft • revisions. [Completion August, 2007] 2. EDC should make recommendations of revisions to the City Council. [Completion December, 2007] 3. City Council should take action on recommendations. [January, 2008] Objective 3.8 — Economic Development Committee Structure: The EDC shall explore restructuring opportunities that better reflect the current makeup of the local economy, and that would provide the expertise and flexibility to implement the goals and objectives of this plan. Restructuring should also pay particular attention to the effective and efficient utilization of volunteers serving on this Council - appointed committee and their time. Lead: Economic Development Committee members and Economic Development staff Support: City Council Financial Resources: No new resources are required to implement this Objective. Action Steps: e Strategic Plan For Fiscal & Economic Sustalnability June 29, 2007 Draft Page 17 �I 1. EDC should appoint a subcommittee to draft revisions. [Completion August, 2007] 2. EDC should make recommendations of revisions to the City Council. [Completion December, 2007] 3. City Council should take action on recommendations. [January, 2008] Goal 4: The City shall facilitate an economically viable concentration of marine uses, and enhance the maritime viability of Newport Harbor. Objective 4.1 — Water - Dependent Marine Businesses: The City shall implement land use and related zoning regulations to encourage the preservation of water dependent marine business uses as re- development occurs overtime. Lead: Planning Department staff Support: Consultant(s) Financial Resources: This should be included in the Zoning • Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] Objective 4.2.— Non - Water- Dependent Marine Businesses: The City shall implement land use and related zoning regulations by [June, 2008] to provide for the preservation of existing non -water dependent marine businesses in the West Newport Mesa area, as well as development of incentives to facilitate the relocation of such businesses to that area from economically unsustainable water front locations. Lead: Planning Department staff Support: Consultant(s) Financial Resources: This should be included in the Zoning Code revisions project that is already underway. �) Strategic Plan For Fiscal & Economic Sustainabllity June 29, 2007 Draft Page 18 rn rl'1 Financial Resources: This should be included in the Zoning Code revisions project that is already underway. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 20081 Lead: Harbor Resources Division staff Support: Harbor Commission, Bay Issues Committee, City Council Financial Resources: Lobby Federal funds to be appropriated to the Army Corps of Engineers and /or local funding with reimbursement from the Corps at a later date. Action Steps: 1. Harbor Resources Staff, City Manager's Office, and City Council members will agree upon an Advocacy Strategy for LNB Dredging by July 2007. The Advocacy Strategy's focus shall be twofold — (1) seek $11 million in the Federal FY 2009 Budget and (2) seek re- programming of funds from other delayed Corps projects to the LNB Project as soon as practicable. Advocacy involves direct communication with the Corps, our federal representatives, and other watershed partners. [Begin July, 2007 and ongoing] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 19 and receiving all required permits, including by • addressing toxicity issues in the LNB (pyrethroids, heavy metals) with consultants' contracts. [Begin October, 2007 and ongoing] Objective 4.4 — Regulatory Compliance: As part of its business assistance program, the City shall assist water - dependent businesses with information and City programs to aid businesses adjacent to the Harbor in complying with state and federal regulations pertaining to water quality, among others. Lead: Harbor Resources Division staff Support: Harbor Commission, Bay Issues Committee Financial Resources: Every five years, the City's Budget includes about $500,000 to complete the testing, monitoring, and applications required each time the City.renews a US Army Corps of Engineers- issued Regional General Permit (RGP 54) that allows small maintenance dredging projects. These projects benefit pier owners and provide sand for beach replenishment. The City's Harbor Resources staff also • serves as the first stop in processing many on -water Coastal Development Permits and Building Permits. Action Steps: 1. Renew RGP -54 on a routine basis, including preparing for its renewal 2 -3 years in advance of its expiration. [Ongoing] 2. Budget for studies and testing required during each renewal. Apply all or a portion of the cost of RGP 54's tests and studies to Harbor fees, at a percentage of cost recovery directed by City Council. [Ongoing] 3. Challenge and contest regulatory directives that the City views as being onerous, including the 1991 Southern California Eelgrass Mitigation Policy. [Completion September, 2007] 4. Seek State and federal funding for the remediation of toxic hotspots in the .LNB, including the Rhine Channel. [Completion August, 2007] 5. Ensure that all watershed partners, including upstream cities, appropriately fund water quality Strategic Plan For Fiscal & Economic Sustainability june 29, 2007 Draft Page 20 �u • improvements in the Bay where upstream actions are directly or indirectly responsible for Bay impairments. [Ongoing] 6. Develop and continuously update an electronic and paper version of a Bay Users Handbook that instructs businesses and residents as to regulations, permit steps, and other helpful information. [Ongoing] Objective 4.5 – The City will invite proposals for the implementation of a privately owned and operated summer water transportation service, with funding supplemented by grants, private, contributions and public monies. Research should be conducted into the transferability of existing models in Los Angeles County and other areas. Lead: Economic Development staff Support: Harbor Resources Division staff, Harbor Commission Financial Resources: Public/Private partnership • Action Steps: 1. Economic Development staff will research successful small- harbor, summer -only private (or public/private) water transportation services that may be suitable models for implementation in Newport Beach. [April _ June, 2008] 2. A committee of interested individuals from the EDC, Harbor Commission, and the local maritime and tourism industry will be formed to develop and champion —with staff assistance as required— strategies, find funding methods and sources, and review proposals for implementation. [Beginning June, 2008] Goal 5: The City will enhance the boating services of Newport Harbor. Objective 5.1 – The City will develop or convert at least 40. additional guest boat slips, and annually study the demand for additional guest slips. Lead: Harbor Resources Division staff / Public Works staff (� Support: Harbor Commission Strategic Plan For Fiscal & Economic Sustalnabllity June 29. 2007 Draft Page 21 .1 IV) Goal 5: The City will enhance the boating services of Newport Harbor. Obiective 5.1 — The City will develop or convert at least 40 additional guest boat slips, and annually study the demand for additional guest slips. Lead: Harbor Resources Division staff / Public Works staff Support: Harbor Commission Financial Resources: CIP funding of the design and construction of the Marina Park Project Action Steps: 1. Design and construct a visitor - serving marina at Marina Park. [Completion, 2010] Objective 5.2 — Where feasible, the City will develop more capacity for tying up small boats at the Balboa Village area, Balboa Island area, Marinapark, the Rhine Channel area and the Mariner's Mile area. Lead: Harbor Resources staff / Public Works staff Support: Harbor Commission, Community volunteers Financial Resources: CIP budget request for design and construction Action Steps: 1. Design and construct a guest dock at Marina Park. [Completion, 20101 2. Design and construct a guest dock at the Rhine Wharf. [Completion by November, 20071 3. Design and construct public dock access improvements at the Fernando Street, 15th Street and 19th Street public docks. [Completion, June, 2008] Strategic Plan For Fiscal & Economic Sustainability July 18, 2007 Draft Page 22 • Lead: Harbor Resources Division staff Support: Orange County Sheriffs Harbor Patrol staff Financial Resources: City /County staff manpower 100 hours annually each. Action Steps: 1. Annually review Dinghy Docking Regulations. [Ongoing] objective 5.4— The City will develop a policy that allows visiting boaters to leave their boats unattended at anchor for some period of time. Such policy will be subject to annual review. Lead: Harbor Resources Division staff /Orange County Sheriffs Harbor Patrol Support: None Financial Resources: City/County manpower 10 hours annually each • Action Steps: 1. Design and construct a guest dock at Marina Park. [Completion, 2010] 2. Design and construct a guest dock at the Rhine Wharf. [Completion by November, 2007] 3. Design and construct public dock access improvements at the Fernando Street, 15"' Street and 19 Street public docks. [Completion, June, 2008] 4. Regularly review existing Municipal Code so that public dock tie-up times on existing public docks maximize the ability of visitors and residents to use public docks for. short-term stays (shopping, dining). [Ongoing] Goal 6: The City shall support the careful expansion of visitor - serving businesses and facilities. Objective 6.1 — Small Scale Lodging: The City shall identify an economically feasible program for encouraging the t. development of small scale lodging and bed and breakfast Strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 23 establishments in Newport Beach, including existing barriers • to their establishment, and potential incentives to encourage such development consistent with the General Plan policies. Lead: Economic Development and Planning Department Staff Support: City Council; Zoning Consultant. Financial Resources: Staff time — approx. 200 -300 hours. $4,000 48,000 for economic feasibility consultant. Action Steps: Research regulatory barriers to the development of small scale lodging and provide specific recommendations for zoning changes to the General Plan Implementation Committee for timely consideration. [Completion December, 2008] 2. Prepare an inventory of suitable areas and /or sites by type of lodging. [April, 2009] 3. Have consultants research the financial feasibility for • various types of small scale lodging with either existing or revised regulations. [January- March, 2009] Objective 6.2 — Vacation Rentals: The City shall review and revise its existing policies governing vacation rentals to acknowledge and enhance the economic benefit to the City of such establishments and recommend a program to maintain and enhance the quality level of short-term lodging. Lead: Planning Department Staff Support: Revenue Division; Economic Development Financial Resources: Staff time will be required for meetings and research. Action Steps: 1. Research regulations and policies that impact vacation rentals and propose revisions if needed. [Completion September, 2007] 2. Help form organization to a) research existing models for vacation rental owner organizations and encourage the development of one in Newport Beach •} Strategic Plan For Fiscal & Economic Sustainabillty June 29, 2007 Draft Page 24 ry �n • and b) assist the industry in developing a voluntary "Seal of Approval" program to encourage and promote high quality vacation rentals. [April -June, 2008] Objective 6.3 — Marketing and Promotion: The City shall continue its strong relationship with the Newport Beach Conference and Visitors Bureau to enhance the effectiveness of marketing and promotion undertaken by the City and the Bureau, in order to enhance the City's promotion to a worldwide audience. Lead: City Manager's Office Support: Staff from Economic Development, PIO office, Recreation & Senior Services, Planning, and Fiscal Services departments; CVB Board and staff and their membership; staff and/or volunteers from the events that the City and CVB jointly support. Financial Resources: Annual financial commitments from General Fund to the CVB, and the events and activities • promoting the City; approximately 200+ hours annually of staff time. Action Steps: 1. City Manager's Office staff should maintain and enhance existing relationship with the CVB to market and promote the City of Newport Beach; CVB staff should provide annual reports to the EDC and City Council on the strength of the tourism economy. [Ongoing) 2. The EDC should recommend to the City Council that they continue to: A) provide financial support; and B) designate its staff liaison to the Newport Beach Film Festival on an annual basis. [Ongoing) 3. The City Council, through the City Manager and staff, should maintain and enhance existing relationships with annual events that generate economic value to the City; such as the Toshiba Golf Classic, the Taste of Newport event, the Newport Beach Film Festival. [Ongoing) ._. Objective 6.4 -- Beach / Bay Activities Promotion: The City ? shall promote and encourage activities and events in and Strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 25 0 near the beaches and the bay that generate retail sales, e.g., • boat shows, sports tournaments, etc., consistent with the Local Coastal Plan. Lead: Recreation & Sr. Svcs. Department Support: City Council; Harbor Commission; City Manager's Office; Recreation & Sr. Services staff; Harbor Resources Division staff; PIO office; Fire Department (Lifeguard Division) personnel; CVB staff; Chamber(s) of Commerce staff and volunteers; other organizations involved in these activities. Financial Resources: No additional resources needed at this time. Action Steps: 1. The Recreation and Senior Services Department staff should prepare and maintain a master calendar of events. [Ongoing] Goal 7: The City will seek to minimize the economic impact of traffic congestion and will take affirmative steps to improve traffic flow. • Objective 7.1 — Develop and implement a master plan to modernize traffic control systems and technology, to improve synchronization and improve traffic flow, throughout the City. Areas of concern include Pacific Coast Highway in Mariner's Mile, Newport Boulevard from 15th Street to the 55 Freeway in Costa Mesa (working cooperatively with that City), Jamboree Road, and on Balboa Peninsula along Newport Boulevard from Main Street to Pacific Coast Highway, as well as other roadways and intersections. Lead: Public Works Department staff Support: City Council Transportation Subcommittee Financial Resources: As yet undetermined Action Steps: 1. Retain consultant for first phase of traffic signal modernization program 2. Complete Traffic Signal Communication Master Plan [Completion June 20071. strategic Plan For Fiscal & Economic Sustainability June 29, 2007 Draft Page 26 17D 0 3. Complete design of traffic signal system upgrades [Completion December 2007]. 4. Complete construction of upgrades to traffic signal controllers, and design and implement coordinated signal timing plans [Completion June 2008]. Objective 7.2 — In conjunction with its approved capital plan and annual budgeting process, the City will implement key roadway and intersection improvements identified in the General Plan Update. Lead: Public Works Department staff Support: City Council Transportation subcommittee; General Plan implementation subcommittee Financial Resources: As yet undetermined • Action Steps: 1. Retain consultant to update Fair Share Fee based on circulation system improvements in new General Plan [Beginning April 2007]. 2. City Council adoption of updated Fair Share Fee [August 2007]. 3. Design and construct improvements in General Plan. [In conjunction with development that causes need and provides funds for improvements] Objective 7.3 — The City will strongly advocate the construction of the 19th Street Bridge, and other critical regional traffic improvements. Lead: City Manager Support: City Council Borders Subcommittee; Public Works Department staff Financial Resources: As yet undetermined Action Steps: As opportunities arise, work with the Orange County Transportation Authority (OCTA) and the Cities of Strategic Plan For Fiscal & Economlc Sustainability June 29, 2007 Draft Page 27 Costa Mesa and Huntington Beach to facilitate construction of regional improvements. [Ongoing] Objective 7.4 — The City shall create a plan to encourage and foster the development of privately owned and operated alternative transportation services, such as bus shuttles, to service the various commercial, retail and recreation areas in Newport Beach, in at least partial substitution for additional parking, with funding supplemented by grants, private contributions, and public monies. Lead: Public Works Department staff Support: Economic Development staff Financial Resources: As yet undetermined Action Steps: Monitor the potential for grant funding and public private partnerships to make alternative transportation services feasible. [Ongoing] Obiective 7.5 — The City shall work cooperatively with adjacent cities and jurisdictions to complete key roadway and traffic synchronization projects that will help improve the flow of traffic within the boundaries of Newport Beach. Lead: City Manager Support: City Council Borders Subcommittee; Public Works Department staff Financial Resources: $64,000 from settlement of IBC litigation. Action Steps: 1. Using funds from IBC litigation settlement,. complete study of impacts and circulation system improvements needed as a result of development in IBC. [February 2008] 2. As opportunities arise, work with the Orange County Transportation Authority (OCTA) and the Cities of Costa Mesa, Huntington Beach and Irvine to facilitate construction of regional improvements. [Ongoing] Strategic Plan For Fiscal & Economic Sustainabillty June 29, 2007 Draft Page 28 0 • 0 "1 71 Action Steps: 1. Using funds from IBC litigation settlement, complete study of impacts and circulation system improvements needed as a result of development in IBC. (February 2008] 2. As opportunities arise, work with the Orange County Transportation Authority (OCTA) and the Cities of Costa Mesa, Huntington Beach and Irvine to facilitate construction of regional improvements. [Ongoing] Goal 8: The City will administer its development review and permitting processes in an efficient, solution oriented and customer friendly manner. Objective 8.1 — The City will implement the recommendations of the Evaluation of the Development Review and Plan Checking Processes, dated August 2006, including the following: 1. Increased inter- departmental coordination; 2. Use of project managers with primary responsibility for major projects; 3. Full use of Permits Plus and /or other database systems; 4. Established performance standards for project review; 5. Adequate staffing to meet performance standards and serve the public counter; 6. Availability of up -to -date public information materials on application requirements and processes; 7. Standardization of plan check correction checklists to the maximum extent possible; Strategic Plan For Fiscal & Economic Sustainability July 18. 2007 Draft Page 29 Action Steps: • 1. Assistant City Manager will coordinate with the staff of the Planning, Building, Public Works, Fire and Utilities departments to prioritize this Objective, and will provide feedback to the EDC on progress made. [Ongoing] Obiective 8.2 — Staff will provide for enhanced communication with applicants, both earlier and more consistently throughout the process. Lead: Assistant City Manager Support: Staff involved in the development review process (Planning, Building, Public Works, Fire and Utilities departments). Financial Resources: No new resources needed at this time. Action Steps: 1. Assistant City Manager will coordinate with the staff of • the Planning, Building, Public Works, Fire and Utilities departments to prioritize this Objective, and will provide feedback to the EDC on progress made. [Ongoing) Obiective 8.3 — The City will assure that staff receives receive regular training on maintaining a high quality of customer service and positive attitude. Lead: Human Resources Department Support: City Manager's Office; all development review staff; staff from any department that regularly contact the public Financial Resources: As yet undetermined. Action Steps: 1. Assistant City Manager will coordinate with the staff of the Planning, Building, Public Works, Fire and Utilities departments to prioritize this Objective, and will provide feedback to the EDC on progress made. [Ongoing] Strategic Plan For Fiscal & Economic Sustainability June 29., 2007 Draft Page 30 �U • Objective 8.4 — The City will write and approve Zoning Ordinance and other regulatory codes to make the process more streamlined. Lead: Planning Department Support: Planning Commission, City Council Financial Resources: No new resources needed at this time. Action Steps: 1. Economic Development staff will coordinate with the General Plan Implementation Committee and staff of the Planning Department to prioritize this Objective, and will provide feedback to the EDC on progress made. [Completion January, 2008] NOTE ON ADDITIONAL REFERENCES • To support the Visioning Process and to provide background material for the GPAC to consider in its development of policies to be included in the General Plan update, the City contracted with the firm of Applied Development Economics, Inc. (ADE) for studies related to current economics and. future fiscal impacts. ADE prepared a commercial market study published in December 2002 entitled "Newport Beach General Plan Update Retail Commercial Market Analysis." and a fiscal impact analysis entitled `Fiscal Impact Analysis and Model Newport Beach General Plan Update," published in revised form in January 2004. Please refer to the detailed reports cited above, in addition to the final General Plan Update adopted by the City Council on July 25, 2006, and ratified by the voters in November, 2006, for further background. Strategic Plan For Fiscal & Economic Sustafnabiliry June 29, 2007 Draft Page 31 2r e N� ° 6 m «aa m m tai � ww[w m w w ®0m m � m b x > S > Sp g> >1 S N g> N � j C e •• ft ;lL N g $ s � �° m$ IF a Y iiiEEE p� o R I a $ N 1J aaas n z R $ S a a - �rmi $ $ $ a $ S $ $ ail 11 1 1 $ 0 m 3 — a � po � t m n Q da V on m O N Ip m w s S° O a a ¢ a 3 g m 4 z 2 w pm 3 Tw ... .......... .......:.. .. ..._.......,., .......... ............ .. ......... . ... ....._..... ..,. .,_....... .. ._ ...........,. ..._...... j2 > cT 3 � m ..m ....,._ ..... ... ...... .....,....,... .,.......m _....'....._... ... ...,... .... .. .. . .. ... ..,,.. _.m ., m .,.....,.. .. ... .._..._..... ......... _... ° g a d 2 ..._ ............ ............. ..... .,. .. ...,.,._,.. 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