HomeMy WebLinkAbout05/22/2018 - Special MeetingCITY OF NEWPORT BEACH
City Council Minutes
Special Joint Meeting with the Finance Conunittee
May 22, 2018
I. CALL MEETING TO ORDER - 4:00 p.m.
II. ROLL CALL
Present: Council Member Jeff Herdman, Council Member Brad Avery, Council Member Diane Dixon,
Council Member Kevin Muldoon, Council Member Scott Peotter, Mayor Pro Tem Will O'Neill,
Mayor Duffy Duffield, Finance Committee Member William Collopy, Finance Committee
Member Patti Gorczyca, Finance Committee Member Joseph Stapleton (arrived at 4:05 p.m.),
Finance Committee Member Larry Tucker
III. CURRENT BUSINESS
A. Review of the Proposed Fiscal Year 2018-19 Budget
Finance Director Matusiewicz provided a PowerPoint presentation to discuss key budget dates, where
to find the open budget portal and the budget detail, provided a budget overview, summary of all
funds, general fund sources and uses, proposed use of surplus funds, and general fund operating
expenditures by function and type, explained general fund transfers, unfunded pension liability and
pension tier trends, pension funding, and the level dollar payment strategy and its overall savings.
In response to City Council questions, Finance Director Matusiewicz discussed when the City receives
its valuation from CalPERS, confirmed that interest is accrued, explained the City's payment strategy
and how it is different than other cities, noted that Ca1PERS is dropping the discount rate, but
increasing liability, reported the City has made extra payments since fiscal year 2014 for a total of
about $70 million, and explained that, by continuing the level dollar payment strategy, it would make
the pension payment an ever decreasing component of the budget.
Council Member Muldoon recused himself during assessment district discussion due to
business interest conflicts.
Public Works Director Webb reported on the five active underground districts, provided an update
relative to the Southern California Edison (SCE) projects, and noted the Corona del Mar project will
be coming to Council on June 26, 2018.
City Manager Kiff reported on program enhancements for several City departments, highlighted
proposed Police Department personnel changes related to Community Services Officers (CSO) and a
School Resource Officer (SRO), and the Fire Department's and Community Development
Department's desire to have a Fire Marshal, and discussed the possible use of marine personnel to
assist with evening issues in the harbor. He reviewed his seven -point plan to address homelessness,
described how other cities are dealing with the issue and how the City can be partners with other
organizations. He noted the net position change is seven, indicated this number does not include the
proposed Harbor Department changes, and reported on the legal impact where contractors are being
treated more like employees. He highlighted the vehicle replacement plan and displayed the budget
checklist, indicating that the PowerPoint presentation will be made available online. He also reported
how some Capital Improvement Projects (CIP) are re -budgeted. Budget Manager Giangrande noted
bargaining unit contract end dates.
Volume 63 - Page 511
City of Newport Beach
Special Joint Meeting with the Finance Committee
May 22, 2018
In response to City Council questions, Police Chief Lewis confirmed the SRO would be a sworn peace
officer and explained the duties of the new CSOs. Council Member Muldoon expressed support for
the SRO position, but not the additional CSOs, due to his concern with increasing staff overall. He
requested to learn more about the homelessness issues. Fire Chief Duncan and Community
Development Director Jurjis discussed the history of the City having a Fire Marshal, the types of
specialized services the position provided, how plan checks are being handled today, if some of the
Meld inspection duties could be conducted by on -duty firefighters, and how some of the costs could be
recovered through fees.
Regarding the conceptual landscape design work for 15th Street to Balboa Village, City Manager Kiff
indicated that there are funds in the Balboa Village parking management district that can used for
this project, so it could be added to the budget checklist.
Council Member Dixon thanked Finance Committee members, staff, and the public for attending
Finance Committee meetings.
Finance Committee Member Tucker pointed out that the level dollar payment strategy to pay down
unfunded pension liability assumes the returns actually happen, emphasized that most of the City's
revenue comes from sources it does not control, and encouraged the City to invest in infrastructure
and continue to maintain a high level of public safety as these increase property values. He also
commended City Manager Kiff for trying to program in a surplus. He suggested that, at some point,
the City determine if its staffing level is appropriate.
Ruth Kobayashi provided a letter to discuss school safety. She expressed her support for hiring
another SRO and expanding experiences with the local high schools.
Joy Brenner, President of the Corona del Mar Residents Association, believed there may be issues in
the City that are not being addressed, which may require hiring more staff to alleviate them.
Jim Mosher believed it was more difficult to follow budget discussions this year, expressed concern
that the presentation was only made available today, explained what he believed approving the
budget meant, requested more clarity about the approval process and what staff is allowed to do, and
believed Council should reduce staff's discretion to write contracts and disperse City funds
Discussion ensued relative to the Corona del Mar Library project, its timeline, and how CIP projects
are different relative to budgeting and re -budgeting.
IV. PUBLIC COMMENTS - None
V. ADJOURNMENT - 5:27 p.m.
The special meeting agenda was posted on the City's website and on the City Hall Electronic
Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive
on May 17, 2018, at 4:00 p.m.
Volume 63 - Page 512