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HomeMy WebLinkAbout01/14/2017 - Special MeetingCITY OF NEWPORT BEACH City Council Minutes Planning Session (Special Meeting) January 14, 2017 1. WELCOME - 9:00 am. Present: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon 2. PUBLIC COMMENTS ON NON -AGENDA ITEMS Bill Dunlap led the Pledge of Allegiance. Jim Mosher commended the City Council for setting goals, but suggested a longer vision for Newport Beach, such as a 110 -year plan. 3. FISCAL PICTURE UPDATE Finance Director Matusiewicz provided a PowerPoint presentation outlining the FY 2015-16 year-end revenues, including property tax, sales tax and Transient Occupancy Tax (TOT). In response to Council Member Dixon's questions, Finance Director Matusiewicz reported that the City receives 160 on the dollar of the 1% property tax. He anticipated minimal impact from the reduction of sales tax. Finance Director Matusiewicz explained the General Fund and reported that it ended with a $10 million surplus. He presented the budget preparation cycle and discussed budget challenges, including pension funding and Seawall and Harbor Master Plan. In response to Council Member O Neill's question, Finance Director Matusiewicz explained general liabilities and the $1.5 million shortfall. Council Member Dixon discussed the Capital Improvement Program (CIP) and anomaly of only $5 million of the $60 million coming from the General Fund. City Manager Kiff explained the impact of the CalPERS discount rate change and range of alternatives for payment on unfunded liability. Finance Director Matusiewicz stated the public could access presentations the Finance Committee received on pension issues at newportbeachca.gov/pensions. Council Member O Neill requested information on employee contributions. City Manager Kiff stated the employees paid $9 million of the $40 million. Council Member O'Neill emphasized that $8 million of the $15 million in normal costs were paid by the employees. Council Member Dixon stated the pension expenses represented 16.34% of operating expenses. City Manager Mff stated it was approximately 11% or 12% in 2012. He reminded Council that the City voluntarily increased its percentage with the Fresh Start program. City Manager Mff highlighted Harbor needs and possible allocations, and indicated the City was in good shape, but provided recommendations regarding pension funding. He also discussed the case in Marin County requiring reasonable pensions for employees. In response to Mayor Muldoon's question, City Manager Mff discussed repair and/or replacement of a portion of seawall near Collins Island and the placement of a 64nch cap on the south side of Bayfront, that both items were included in the budget, and the need to plan for future repairs. Mayor Muldoon suggested setting aside Volume 63 - Page 170 City of Newport Beach Planning Session (Special Meeting) January 14, 2017 surplus for future seawall repairs and asked how to budget for the future. City Manager Kiff agreed with his suggestion to set aside $5 million now, and add $1 million each year for the next 15 years. He suggested an incremental change in height, if necessary. Nancy Skinner asked if the surplus was different from reserves. City Manager Mff explained that reserves were the amount set aside for emergencies and surplus was annual savings. Dennis Baker asked if there were Federal funds available for the seawall repairs. City Manager Kiff indicated that staff continues to look for funds for seawall repair. George Schroeder discussed the projected CalPERS rates and City's contribution. He expressed concern with capital improvements being impacted due to unfunded pension liability. Nancy Gardner suggested planning for sea level rise for ocean facing properties, not just bay residences. Lee Pearl discussed potential funding for seawall improvements and offered to work with the City on Federal and State funding sources. Brian Ouzounian suggested the City hire a consultant to fundraise for seawall repairs on Balboa Island. Jim Mosher expressed concern about the public's understanding of and ability to track the City's financial state and suggested warrants and claims be more visible to the public. He questioned whether the Enterprise Resource Program (ERP) would allow the public to review the budget line items. He asked what transparency and visibility would be coming in the next year. City Manager Kiff discussed the status of the ERP and software that would allow data analysis. 4. RECESSED/RECONVENED Mayor Muldoon recessed the meeting at 10:00 a.m. and reconvened the meeting at 10:20 a.m. with all members of the City Council present. 5. PENDING CAPITAL AND OTHER PROJECTS Public Works Director Webb utilized a PowerPoint presentation to highlight the major projects under construction, projects nearing construction, projects in design, and projects planned for next fiscal year. Mayor Muldoon requested the costs associated with the projects. Council Member O'Neill reminded residents that the costs could be found in the FY 2016-17 CIP program document. In response to Bob McCaffrey's question, Public Works Director Webb discussed replacement of the Corona del Mar library and fire station facilities. Council Member Dixon asked about the loss of parking from the Banning Ranch project. Public Works Director Webb confirmed that parking needs to be addressed through the use of Lower Sunset View Park. In response to Council Member O'Neill's question, Public Works Director Webb explained that potable water was funded through water utility. In response to Council Member Dixon's question, Public Works Director Webb discussed the replacement of street signs. Public Works Director Webb discussed possible projects for next fiscal year and during the FY 2017-18 CIP. Council Member Herdman discussed the project list and limitations on completing all projects. Volume 63 - Page 171 City of Newport Beach Planning Session (Special Meeting) January 14, 2017 Council Member Avery asked if the Central Avenue pier could be completed prior to summer. Public Works Director Webb stated the permitting process had been difficult, but the goal was to complete the pier by summer. He also discussed the boat sizes that would be able to utilize the pier. In response to Council Member Peotter's question, City Manager Kiff explained the Facilities Finance Plan (FFP) and review by the Finance Committee. Council Member Peotter discussed traffic in the City and suggested the issue be managed by a single director to advocate for transportation improvement. He suggested the 2% development fee, that is currently dedicated for art, be used for traffic improvements. Mayor Pro Tem Duffield expressed enthusiasm for harbor improvements. Council Member Herdman encouraged involving the Balboa Island residents and merchants' association in any modification on Balboa Island. Council Member Avery urged continued efforts for the West Coast Highway Landscape Rehabilitation project. Community Development Director Brandt utilized a PowerPoint presentation to review the certification of the Local Coastal Program (LCP), Mariners' Mile Master Plan, and planning projects under construction. In response to Mayor Muldoon's question, Community Development Director Brandt discussed the process to update the General Plan, including community input. . Council Member Dixon asked about the timeline if the General Plan Update were to go before the voters. Community Development Director Brandt clarified that voter approval was only required if there was a change in City's land use intensities and densities. In response to Council Member Peotter's questions, Community Development Director Brandt reported that she anticipated the Circulation Element, Safety Element, Land Use Element, and Harbor Element would be considered in the update. She discussed the 2006 comprehensive General Plan Update process. Council Member Dixon clarified that the update would need budget approval. Nancy Skinner asked the status of Bayside Drive. City Manager Mff explained the round -about design status. In response to Bob McCaffrey's question, Public Works Director Webb stated $10,000 to $15,000 had been spent on conceptual designs. Brian Ouzounian suggested retaining funds for the Balboa Theater. Dennis Baker complimented the Public Works Department for successful grant applications. He also commended Council for considering another review of the General Plan. Joy Brenner discussed the history related to the Corona del Mar fire station and library project. She discussed the importance of public resources and the value of the library. George Schroeder discussed neighborhood enhancement committees and the need to improve streetscapes. Lee Pearl commended staff on successful community outreaches and the Police Department for its assistance during the Boat Parade. He presented his CIP suggestions, including Marine Avenue dovetailing into residential streets, reducing flood insurance, facilities at Ruby Beach, a community room at the Fire House, and improvements on Bayside Drive. Bernie Svalstad, Corona del Mar Business Improvement District, stated they will be suggesting a monument sign identifying Corona del Mar's entrance. Volume 63 - Page 172 City of Newport Beach Planning Session (Special Meeting) January 14, 2017 Paul Watkins, Board of Library Trustees member, urged Council to stay the course with Fire Station No. 5 and the library. Jim Mosher believed it was unrealistic to revamp the General Plan in 8 to 12 months and suggested incremental changes be made. Jill Johnson -Tucker, Chair of the Board of Library Trustees, stated the library improvements were made due to the need at the fire station. She suggested rebidding the project and keeping the library as is. 6. GUIDANCE TO CITY STAFF Mayor Pro Tem Duffield expressed gratitude to IT staff for website improvements and the MyNB app Council Member Dixon expressed her continued support for Balboa Boulevard landscape improvements and traffic synchronization. Council Member Peotter requested that the next part of the Taxpayer Protection Act remain on the agenda. He encouraged improvements for transparency, indicated his interest in repealing the employee tax and implementing a business license fee, and creating a Harbor Master Plan. Council Member O'Neill thanked Mayor Muldoon, staff and the public for their input. He suggested continued emphasis on restricted fund use going into community development, such as the Senior Housing Assistance Program (SHARP) and Community Development Block Grant (CDBG) funds, following Council Policy F-5 regarding surplus, reviewing the FFP, the need for a new rate study in the Wastewater Master Plan, and conducting study sessions on debt policies, pension liabilities, and the Harbor Master Plan. Council Member Herdman complimented staff on the workshop. He discussed the need for election reform to allow the City Attorney to enforce election laws and codes. Mayor Muldoon suggested that Council address the FFP separately. He agreed with dedicating 50% of the surplus to unfunded pension liability and 50% to seawall needs. He also suggested using property sale proceeds toward the unfunded pension liability. He encouraged large community outreach for any General Plan Update. ADJOURNMENT - 11:56 a.m. The agenda was posted on the City's website and on the City Hall Ele one Bulletin Board located in the entrance of the City Council Chambe at 100 ivic Center Drive on January 12, 2017, at 3:20 p.m. Mayor Volume 63 - Page 173