HomeMy WebLinkAbout04/08/2003 - Study SessionCITY OF NEWPORT BEACH
City Council Minutes
Study Session
April 8, 2003 - 4:00 p.m.
ROLL CALL
Present: Heffernan, Proctor, Ridgeway, Adams (arrived late), Webb, Nichols
(arrived late), Mayor Bromberg
Absent: None
CURRENT BUSINESS
1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR.
Council Member Webb stated that he would be removing Item No. 7, Sewer
Main Master Plan Improvements, and Item No. 17, Council Policy Manual
Update, from the Consent Calendar at the evening meeting.
Regarding Item No. 17, Council Member Heffernan asked if the changes
highlighted in Council Policy F -1, Statement of Investment Policy, were new
changes.
Regarding Item No. 15, Cable Franchise Negotiations, Council Member
Heffernan asked if the statement of minimum goals was copied twice in the staff
report.
2. NEWPORT HARBOR NAUTICAL MUSEUM.
Glenn Zagoren, President and CEO of the Newport Harbor Nautical Museum,
stated that the museum is here to preserve the history of the harbor. Using a
PowerPoint presentation, he noted that in 1860, the first survey boat dropped
anchor off of the Balboa Peninsula, and in 1870, trading in the harbor began. In
1875, the first complete survey of the harbor was done and building began. In
1888, trading on the wharf began and in 1890, the railroad was built from Santa
Ana. Mr. Zagoren displayed a photo of the bay in 1900. In 1905, the red car
service began. Mr. Zagoren stated that various movies were filmed in the
harbor. In 1927, the original Newport bridge opened. Mr. Zagoren displayed a
photo of the bridge, as well as other historical photos. Throughout his
presentation, he compared the events in Newport Harbor to those taking place
in the world at the same time to help provide a historical perspective.
Mr. Zagoren stated that the mission of the museum is to inspire, preserve and
educate. He noted that the museum was founded in 1986 on the Balboa
Peninsula. He displayed a photo of the museum at its present location.
Mr. Zagoren stated that there is a market for the museum and the plan is to
expand it to meet these needs. He noted that Dana Point may move into the
nautical preservation area, but he felt that this would be unfortunate for
Newport Harbor.
Mr. Zagoren stated that the museum's target market is Newport Harbor and the
surrounding areas, although 22% of the museum's visitors are from outside
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California. He noted that the Newport Harbor Nautical Museum is an
accredited part of the Newport -Mesa school system, and that it's now mandatory
for fifth graders to participate in the program. He stated that there are over
357,000 students in Orange County that are potential participants in the
museum's nautical education and environmental programs.
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Mr. Zagoren stated that while the business market is remaining relatively flat,
the tourism market is growing. He noted that over 57,000 visitors come to
Orange County each day, with over 19,000 visiting Newport Beach each year.
Thirty -six percent of all travelers visit a museum, with museums rated in the
top three vacation destinations points. Visits to museums total approximately
2.3 million per day in the country, which is a 50% increase from a decade ago.
Mr. Zagoren noted that 25% of the population in Orange County visits a
museum on an average of three times per year. The economic impact of
museums is significant, since tourists who visit museums spend twice as much
as those who don't.
Mr. Zagoren stated that the museum's board of directors has done a good job of
getting the museum where it is. The management team is comprehensive and
there are 210 trained volunteers and docents.
Regarding the educational programs, Mr. Zagoren stated that there have been
over 10,000 students served through the Young Mariners Program, and the
Partnership for Clean Water has served over 4,000 students. Both programs are
currently at maximum capacity, as are the Boy Scout Sea Base and the After
School Programs, with over 5,000 scouts and 3,000 students, respectively. The
Adult Lecture Series is above maximum capacity with over 2,500 adults
participating, and volunteer programs have contributed over 15,000 hours. He
stated that what is needed is additional class room space, a boat restoration
program, additional staff, an expanded library and more interactive programs.
He displayed photos and flyers of some of the special events that take place at
the museum. Mr. Zagoren stated that the Newport Gallery at the museum
offers the complete history of Newport Harbor, the Model Gallery is one of the
best in the area and the Grand Salon Gallery is where the special events take
place. He noted that 58,000 historical photos are also a part of the museum's
collection.
Mr. Zagoren stated that there are a number of organizations that want to
participate at the museum, if an expansion is made possible. He listed these as
including the Kelton Collection, the Beckner and Sawyer Collections, a West
Coast Yachting Hall of Fame, the Newport Harbor Watercraft Collection and a
Hall of Surfing & Fishing. Mr. Zagoren stated that the museum currently
resides on a 10,000 square -foot boat and that land -based exhibition space is
needed, as well as expanded education and lecture facilities, and improved
environmental and security systems.
Mr. Zagoren presented the concept of the Historic Seaport Village Plan. He
stated that the museum board, executive staff, residents and members of the
museum are ready to take on a capital development campaign to raise the
needed funds. He asked for the City's support as a partner in the project. He
stated that land negotiations will need to take place with The Irvine Company
and the City will need to be involved. Mr. Zagoren stated that the village could
include a dock for the Harbor Patrol, a site for the Conference & Visitors
Bureau, a visitor's kiosk and a community boat ramp. He displayed an aerial
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photo of the proposed site and an artist's rendering of the village. Mr. Zagoren
stated that the City's support will be needed in order for the project to succeed,
and that there is already support from most of the major organizations and
associations in Newport Beach and Orange County. He provided a list of the
entities that have endorsed the museum, and stated that there is a strong need
to expand the museum and preserve the history of the harbor. He stated that
the Newport Harbor Nautical Museum is a major community asset and
reflective of the City's own logo.
Mayor Bromberg stated that the project appears to be a natural for Newport
Beach. He noted that the harbor is the largest pleasure boat, yacht harbor in
the country.
Mayor Pro Tern Ridgeway stated that he didn't know where the big ships would
go, that come into the harbor, if the museum weren't there. He expressed his
support for the proposed village and suggested that a foundation be created for
the funds that will be needed.
Council Member Webb expressed his support for the concept also and noted in
particular, the opportunity for preserving the history of the harbor. He stated
that the proposed location is advantageous due to its high visibility.
Council Member Heffernan stated that it is unclear what action the City should
be taking at this point. He also asked what the plans were for the Lower
Castaways site, noting that they were a part of the aerial photo but not of the
artist's rendering. Lastly, he stated that his father made arrangements for the
boat that houses the museum to be built and transported to Newport Beach. He
expressed his support for the project.
Mayor Bromberg stated that the action being requested of the City could be
presented at another meeting, and that the presentation at the current meeting
was only meant to be informational.
Bonnie Swan, Director of Elementary Education for the Newport -Mesa Unified
School District, stated that the Partnership for Clean Water program has been
one of the highlights of her teaching career. She explained some of the details of
the partnership and stated that at the end of the program, the 5th grade
students have a good understanding of how to preserve the ecology. Ms. Swan
expressed her support for the museum.
Bill Hamilton, restaurant owner, commended those who have made Newport
Beach what it is today, referring to the dredging of the harbor, the building of
the breakwater, and the creation of some of the islands and residential areas.
He expressed his support for the expansion of the museum and stated that it
will help to preserve the story of Newport Beach.
3. CITY HALL NEEDS ASSESSMENT.
City Manager Bludau stated that in July of 2001, the City Council directed staff
to develop a long -term strategic plan of the City Hall facilities. On January 8,
2002, Griffin Advisors, Inc. was hired to develop a City Hall facility needs
assessment plan. City Manager Bludau stated that Phase I of the project
entailed a space needs analysis and concept recommendations.
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Using a PowerPoint presentation, Roger Torriero, Project Executive for Griffin
Structures, Inc., stated that his company completed a space utilization
assessment, a comprehensive analysis of the existing facilities, and a report on
space requirements. He stated that a final report was presented to staff on
August 9, 2002. Mr. Torriero stated that the five buildings at City Hall were
completed incrementally from 1945 to 1985. He noted that the buildings total
44,000 square feet, of which 37,000 square feet is usable space, and that there
are 189 existing and undersized work stations. He stated that the allocation of
space is substantially less than industry standard benchmarks, and the
buildings are in a poor state of condition and repair, and are an inadequate set
of facilities.
Mr. Torriero stated that due to there being no master plan for City Hall, there
are problems associated with the work environments and space allocations, and
spatial inadequacies, lack of parking and inefficient systems. He stated that
there is no security at the site, the buildings do not meet seismic design criteria,
the fire station does not meet the requirements for an essential facility, there
are widespread Americans with Disabilities Act (ADA) violations, the energy
systems are inefficient, the site has on ongoing and costly maintenance, and the
storage facilities are inadequate. Lastly, Mr. Torriero stated that the existing
facilities do not permit effective and expeditious servicing of the community.
Mr. Torriero stated that the present need for the site is 58,100 square feet, with
the first planning level increasing that to 59,600 square feet and the third
planning level to 62,000. He stated that the needs were calculated by looking at
each workstation, desk, file and other items needing space. Benchmarks and
other cities were also looked at. Mr. Torriero displayed a slide, which compared
Newport Beach with other cities and went over the square footage per staff
member for each city. He stated that the blended average of the Building
Owners and Managers Association (BOMA) experience report on public facilities
and the U. S. General Services Administration (GSA) standard for office rental
space is 282 square feet per staff member. Newport Beach is below this average,
as well as the benchmarks of the other cities in Southern California. City
Manager Bludau noted that Mission Viejo and Rancho Santa Margarita have
few employees because they outsource many of their services to contractors.
Council Member Adams asked if the employee count used by Griffin for Newport
Beach included employees who do not work at City Hall. Bob Hall, Director of
Strategic Planning for Griffin Structures, Inc., stated that the count was of the
desks and workstations being utilized at City Hall. Council Member Adams
asked why the planned increase to 62,000 square feet still falls below the
average. Mr. Hall stated that Griffin has designed an efficient facility with
conservative space standards, making the 276 square feet per staff member
comparable to the average of 282.
Using a PowerPoint presentation, Dan Heinfeld, LPA, Inc., displayed an aerial
photo and a site plan of the existing City Hall site. He stated that the current
site is approximately four acres, with 160 parking spaces and 1.15 acres of green
space. He stated that the planning criteria used in developing the concepts
included keeping a .6 -acre green space area as open and preserved, keeping the
fire station as a separate facility and project, and using the existing zoning and
height requirements for the site. Mr. Heinfeld stated that the third planning
level increases the number of parking spaces to 350, increases the square
footage to 62,000, adds an additional building of 7,000 square feet for a
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INDEX
community center and support space, and provides the fire station with a 1.2-
acre site.
Mr. Heinfeld stated that using the above criteria and program elements, three
concepts were developed. Concept #1 remodels the Council Chambers and the
one -story building, and adds a new two - story, 49,600 square -foot building.
Using the drawing on display, Mr. Heinfeld pointed to the location of the
parking structure and the fire station. The total cost of Concept 41 is
$26,288,971, which is an estimate based on the conceptual drawing.
Mr. Torriero stated that Concept #1 is not recommended. Mr. Heinfeld
presented Concept #2, which remodels the Council Chambers and adds a new
two - story, 58,400 square -foot building. The total cost of Concept #2 is
$26,988,347.
Mr. Torriero noted that with all of the concepts, a relocation cost has been
factored in to provide for temporary facilities during demolition and
construction. He stated that it is anticipated that the .6 -acre site in front of City
Hall would be utilized for the temporary facilities, which would allow City Hall
to remain at its current location and operate during construction. City Manager
Bludau asked if there was adequate space to provide for the temporary facilities,
the construction site, construction equipment and the required parking.
Mr. Torriero responded in the affirmative. He added that once the schematic
design is begun, the project could be completed within 24 months.
Council Member Heffernan asked where people would park during the
construction phase. Mr. Torriero used the conceptual drawing to indicate where
parking could take place during the various phases of construction. He stated
that there would probably be a period of six months when there would be a
parking deficit.
Mayor Pro Tem Ridgeway asked if the parking structure could be built first.
Mr. Torriero agreed that it is a possibility and could be considered when the
details of the schedule and plan are looked at.
Mr. Heinfeld displayed the conceptual drawing for Concept #3, which included
an entirely new 62,000 square -foot, two story building and a 3 -level parking
structure. Mr. Torriero noted that the community room could also serve as an
Emergency Operations Center (EOC), if needed.
Mayor Pro Tem Ridgeway asked if the community room could include a studio
for cablevision needs. Mr. Torriero stated that it could and added that there
would be quite a bit of flexibility with the new facility.
Mr. Heinfeld noted the 1.6 acres of open space that would be provided with
Concept #3. Mr. Torriero additionally noted that the plan did not address what
would happen if site areas were exchanged with adjacent property owners,
which could provide greater efficiency on the site from a planning standpoint.
He also noted that traffic flow would be improved with Concept #3 since the
access to City Hall would be from 32vd Street, but stated that greater
improvements might be possible with a land exchange and a rearrangement of
the parking structure.
Per Mayor Pro Tem Ridgeway's question, Mr. Torriero showed how traffic flows
now and how it would flow with Concept #3 or a land exchange. Mayor Pro Tem
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Ridgeway noted that the adjacent property has requirements to provide parking
for some offsite buildings and this would have to be addressed. Mr Torriero
provided an example of a city that has used their City Hall parking as an
economic opportunity.
Council Member Webb stated that the traffic and congestion on Newport
Boulevard also has to be considered. He asked for a clarification on the number
of parking spaces that would be provided with Concept #3. Mr. Torriero stated
that using the current height restrictions for the site, 350 parking spaces could
be provided. Per City Manager Bludau's question, Mr. Heinfeld stated that 250
parking spaces are required for a 62,000 square -foot structure.
Council Member Heffernan asked if alternative sites for City Hall were
analyzed. Mr. Torriero stated that the direction was to study the current site
only.
Council Member Proctor asked how 350 parking spaces could be possible.
Mr. Torriero explained that a parking structure only requires ten feet from floor
to floor and that the height limit for the site is 35 feet, making a three -level
parking structure possible.
Mr. Torriero displayed a budget workbook for Concept #3 and noted that the
total cost is estimated to be $27,570,894. He then displayed an alternate
workbook for the concept, which included the community room and the
additional 100 parking spaces. The alternates would add $2.1 million to the
total cost. He reminded everyone that the costs were conservative estimates
and would most likely be reduced during the schematic design phase of the
project. Mr. Torriero stated that Concept #3 is being recommended. He stated
that it is a cost efficient building solution and replaces the current City Hall
with a new structure. He stated that it also provides for the best flexibility
during construction, while maintaining a fire station on site. Lastly, he stated
that the proposed open floor plans provide for improved work flow between the
departments, which allows for minimum square footage and maximum
efficiency.
Mr. Torriero stated that he has already met with each of the council members
individually to present the concepts. He displayed a list of the questions that
were asked during the meetings to show what issues and concerns were
addressed in the individual meetings.
Council Member Heffernan referred to the first question and asked if it wouldn't
be prudent to consider alternate sites. Mr. Torriero pointed out that the
proposed structures can be applied to any site, although the concepts are site -
specific. Council Member Heffernan asked if alternate sites were considered
with the other cities that Griffin has worked with. Mr. Torriero stated that
Griffin is usually given a site to work with. City Manager Bludau added that
the initial direction to Griffin in July of 2001, was to look at the existing site and
also remodeling opportunities. Mr. Torriero stated that remodeling doesn't
provide the space that is needed. Council Member Heffernan suggested that
alternate sites be considered during the preliminary planning stages.
Mr. Torriero stated that additional concerns and questions that were raised
during the meetings with the council members included the parameters used for
planning, which he stated were the zoning parameters and the direction from
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stall. tie stated that there was also a question about community input, which
he stated would be solicited and gathered during a series of community
workshops. Mr. Torriero stated that the reason the plan proposes 350 parking
spaces, instead of the required 250, is to meet Local Coastal Plan (LCP)
requirements and to create economic development in the area. He stated that a
community room would fulfill several needs, as discussed earlier in the current
meeting. In response to a question about utilizing the area's climate and the
natural daylight, Mr. Torriero stated the matter could be addressed during the
schematic design phase of the work. He reported that there is no historical
significance to any of the current buildings, but there may be nostalgia value
that Council or staff might ask to be considered. Mr. Torriero stated that
additional benefits to replacing the current City Hall would include improved
traffic conditions. Lastly, in response to a question about using the existing site
boundaries, Mr. Torriero stated that this was covered earlier in the current
meeting and that land exchanges with adjacent property owners could also be a
part of the schematic design phase.
Mr. Torriero stated that the next step in the process is to begin the schematic
design phase.
Mayor Bromberg asked what the cost of the schematic design would be.
Mr. Torriero stated that it would be 1.5% of the total project budget, or
approximately $500,000. It would provide all of the information needed to make
a decision on the project, and would take approximately four to six months to
complete.
Council Member Proctor asked if a vacant 4.5 -acre site were available
elsewhere, how much money would be saved. Mr. Torriero stated if there were
no staging impact, approximately 6.5 acres would be needed and there wouldn't
be a significant change in cost. Council Member Proctor pointed out that the
cost of the temporary facilities would be saved, which is estimated to be over
$1 million. Referring to the staff report, he asked how the $2 million per year
figure was computed. City Manager Bludau stated that how the project would
be funded and the cost savings that could be realized from having a new facility
would have to be looked at further by staff. He added that looking at the
current site plan, it is apparent how inefficient the layout is. Mr. Torriero added
that the life of a building is usually thirty years and at some point, spending
money on repairs and maintenance isn't justifiable. He stated that the
operating inefficiencies of the buildings would be quantified, technically and
economically, in the schematic design, and a projection could also be done on a
new, energy - efficient building.
Council Member Heffernan asked how the economics of funding the project
would be studied and suggested that it should be done prior to the schematic
design.
Mayor Pro Tern Ridgeway suggested that a subcommittee of the City Council be
created to work with the Administrative Services Director to look at the
economics. City Manager Bludau stated that staff has not spent time on the
matter, but could provide a general report in two weeks that might assist the
City Council in determining if the project should be looked at further.
Council Member Heffernan stated that the borrowing of the money is simple to
calculate. He stated that he'd like to be presented with more information on the
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efficiencies that would be created by a new building and what money would be
saved. He further clarified that he wants to review the financial justifications
for building a new facility with the current state of the economy.
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Council Member Webb stated that he doesn't necessarily believe that the life of
a building is thirty years, and in regard to the existing buildings not being
seismically sound, he stated that any building built prior to the new seismic
codes that were recently adopted, are probably not considered seismically sound
either. He asked if the Building Director felt that the buildings would have
severe structural damage if an earthquake did occur. Council Member Webb
stated that a more economical approach might be to maintain the
professional/technical building, and construct a new two or three story building
in the location of the other buildings. He agreed that additional parking is
needed. Council Member Webb also agreed that a new facility could be more
efficient and that more space is needed, but he felt that a $10 million project
might suffice. He stated that the needs of the future need to be considered, but
he doesn't know if he can support an entirely new facility. Mr. Heinfeld stated
that keeping some of the existing structures was considered in the analysis, as
well as the concerns for additional parking, and it was decided that building a
new facility would create the opportunity to improve efficiency. In regard to
seismic requirements, he noted that none of the buildings have been upgraded,
but they will need to be.
Council Member Proctor asked if there had been projections on what facilities
would be needed in twenty years. Mr. Torriero stated that the third planning
level takes into account the annexations and a factored growth rate over a
period of time. Council Member Proctor suggested that an economic analysis be
performed.
Mayor Bromberg stated that it will be a major project, but additional space is
needed and efficiency could be improved. He supported having a financial
report, including the financial offset of improving efficiency, presented to the
City Council at a future Study Session. He stated that a subcommittee might
also be appropriate, after the financial report is presented.
Council Member Nichols stated that a nearby office building on the water
appears to be vacant and parking is a problem in the area. He stated that a
larger parking lot that can be shared with the adjacent businesses might be a
solution. He stated that the present facility has openness and that openness
should also be part of a new facility. Council Member Nichols agreed that the
financial studies should be done in order for the City Council to make a
determination, but he'd also like a broader study conducted to make sure that
nothing has been overlooked.
Council Member Adams stated that he is in support of moving forward with
having the financial reports performed. He stated that a public building should
be of high quality and durability, and built for the long term. He stated that the
new facility should create a landmark for the City and have architectural
significance, without pursuing opulence. Council Member Adams disagreed
with the comments of Council Member Webb and keeping the hodgepodge
approach to the buildings. He stated that a cohesive design that will serve the
City for the long term is a better solution. He stated that it might be worthwhile
to integrate a few items of the current City Hall into the new facility, however.
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Mayor Pro Tem Ridgeway stated that money spent on remodeling is money that
is not well spent. He agreed with Council Member Adams that a new facility
should be of high quality. Mayor Pro Tem Ridgeway felt that the current site
should be used since it is where the City was incorporated in 1906. He
expressed his support for the architect and their ability to design a facility that
would meet the needs of the City. Mayor Pro Tem Ridgeway disagreed that
elements of the current City Hall could be incorporated into a new facility. He
felt that a financial report would show that new infrastructure systems and
movement of people within the facility can be made more efficient.
Mayor Bromberg also felt that incorporating current elements into a new facility
isn't likely, and that a photo gallery might be more appropriate to preserve the
history of the City.
Mr. Torriero noted that increasing staff efficiency by just 5% could result in an
annual savings of $450,000.
City Manager Bludau suggested that the financial report could be ready to
present to the City Council in two to four weeks. He noted that budget reviews
begin at about the same time.
Mayor Bromberg suggested that the Study Session on May 13, 2003, begin at
3:00 p.m.
PUBLIC COMMENTS - None.
ADJOURNMENT - at 5:55 p.m.
The agenda for the Study Session was posted on April 2, 2003, at 2:15 p.m. on
the City Hall Bulletin Board located outside of the City of Newport Beach
Administration Building.
City Clerk
Recording Sec Lary
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