HomeMy WebLinkAbout16 - Quarterly Business ReportAgenda Item No. 16
November 8, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Dave Kiff, City Manager
APPROVED: - v�
TITLE: Quarterly Business Report —July through September 2011
ABSTRACT:
Provide a quarterly update of the City business that includes detailed financial
information, status reports from the many City Boards, Commissions and Committees,
and project tracking reports for current key projects.
RECOMMENDATION:
Review and comment, as desired.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
DISCUSSION:
The attached Quarterly Business Report contains an update on City business for the
period of July through September 2011. The report contains a quarterly financial report,
status reports for all City Boards, Commission and Committees, and summaries on 19
of the top projects currently in the works.
Your comments are welcomed.
ENVIRONMENTAL REVIEW:
Not required.
Quarterly Business Report —July through September 2011
November 08, 2011
Page 2
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Dave iff
City Manager
Attachments: A. Quarterly Business Report
TABLE OF CONTENTS
2
Executive Summary
6
Treasury Summary
8
PERS Discussion
10
Revenue
17 Board of Library Trustees
18 Building & Fire Board of Appeals
19 City Arts Commission
20 Civil Service Board
21 Harbor Commission
22 Parks, Beaches & Recreation Commission
23 Planning Commission
24 City Council Redistricting Committee
25 Finance Committee
26 Citizens Bicycle Safety Committee
27 Coastal /Bay Water Quality Citizens Advisory Committee
28 Environmental Quality Affairs Citizens Advisory Committee
29 Newport Coast Advisory Committee
30 Special Events Advisory Committee
31 Aviation Committee
32 Banning Ranch Development Agreement
Committee
33 General Plan /Local Coastal Program
Implementation
34 Group Residential Uses & Code Enforcement
35 July 4th West Newport Safety Planning Committee
36 Negotiate Conexant Dev Agreement
37 Negotiate International Bay Club's Dev Agreement
38 Negotiate Newport Bch Country Club Dev Agreement
39 Neighborhood Revitalization Committee
40 Tidelands Management Committee
45
Project 1:
Acquisition of Coast Highway
47
Project 2:
City Harbor Fees
49
Project 3:
Civic Center Project
51
Project 4:
Group Homes
53
Project 5:
Implement Traffic Management Plan
55
Project 6:
Lower Bay Dredging Project
57
Project 7:
Marina Park
59 Project 8: Newport Banning Ranch
61 Project 9: Reduce Fire in Buck Gully & Morning Cnyn
63 Project 10: Rev Priority Area: Balboa Village
65
Project 11:
Rev Priority Area: Corona del Mar Entry
67
Project 12:
Rev Priority Area: Lido Village
69
Project 13:
Rev Priority Area: Santa Ana Hts
71
Project 14:
Rev Priority Area: West Newport
73
Project 15:
Rhine Channel Cant Sediment Clean up
75
Project 16:
Sunset Ridge Park
77 Project 17: Transportation Fair Share Fee
79 Project 18: West Newport Beach Facility Planning
81 Project 19: Widen Jamboree in the Airport Area
Financial Report
city of newport beach I finance department
www.newportbeachca.gov 1 949.644.3127
Fiscal Year 2010-11 saw global economic instability, a natural disaster in Japan, the European financial
crisis, a sputtering US economy, debt ceiling issues and high jobless rates. The net result was consistent
consumer uncertainty and high volatility across all markets.
Even though the economic recovery is now more than two years old, the pace of the recovery in the labor
market continues to be weak by historical standards. However, given this global economic crisis, Newport
Beach continues to fair relatively well.. The result for Newport Beach was a second year of minimal -to-
flat revenue growth that has kept us focused on Council priorities and disciplined fiscal decisions. We
adhered to our Council's 15 -point Fiscal Sustainability Plan which allows the City to "stay the course" with
responsible, yet challenging, spending decisions and strong revenue monitoring, analysis and reporting.
Executive Summary
GENERAL FUND SUMMARY
Overall, General Fund Revenues finished 2.9% higher than the prior year while expenditures finished 4.1% lower.
On a budgetary basis, General Fund revenues finished up $5 million year than our original estimates and
expenditures finished more than $7.5 million under budget. The net result was that the General Fund finished up
$12.5 million for the year, prior to considering a one -time transfer of $31.1 million to the Facilities Financing Fund.
This was due to the City Manager's task to Department Director's to right -size each department as it should
look by Fiscal Year (FY) 2012 -13. Each Director took this task seriously and began immediately making changes,
resulting in budgetary savings for the General Fund for fiscal year 2010-11 and structurally going forward. This
increase to fund balance was allocated to various fund reserves, commitments and unassigned fund balance.
It is important to note that the City had planned and budgeted for the one -time transfer of $31.3 million from the
General Fund to the Facilities Financing Fund. After considering this transfer, the General Fund closed the year
with a net decrease in Fund Balance of $18.8 million. This transfer is discussed in more detail later.
TOP "3" REVENUES
PROPERTY TAXES
Property Taxes finished the year down nearly .5 %, when compared to the previous fiscal year actuals for 2009-
10. This was a net result of a .6% increase in secured property tax revenues and a nearly 31 % decrease in
prior year penalties and interest. However, Finance staff had expected this decrease in receipts and lowered
the estimated revenue budget projections for Property Taxes to accommodate this expected reduction. In
the end, final property tax collections exceeded the budget of $70.6 million by $1 million which was just one
component of the increase to General Fund balance for FY 2010 -11.
SALES TAXES
Sales Tax revenue continues to trend upward, finishing up nearly 6% over prior FY 2009 -10. While improving,
this activity is still far short of the previous economic expansion as a weak job market, economic uncertainty,
housing price reducing and high energy prices restrain consumer spending. Restaurants regained the top sales
tax producing segment by posting a year- over -year (YOY) increase of 5.8 %, barely inching out new auto sales
revenues which grew only by 1.2% (YOY). While considerably less in overall sales taxes generated, department
stores, service stations, office equipment and light industry segments all posted impressive double digit YOY
increases. The FY 2010 -11 budget had built in a minimal growth factor for sales taxes due to the poor economy
and high unemployment rate. In the end, revenue exceeded budget by approximately $1 million which was
another component of the $12.5 million increase to fund balance this FY.
Sales Taxes In -Lieu appeared to increase nearly 387. over the prior year. However, most of this increase is
attributable to the State withholding $1.2 million in FY 2009 -10 due to an overpayment in FY 2008 -09.
TRANSIENT OCCUPANCY TAXES (TOT)
TOT increased nearly 15% over the prior year. Even though the economy did not show signs of marked improvement,
the City's TOT revenues were not deterred. All hotels were up, and Pelican Hill Resort led the way with its second full
year of operations since opening at the height of the recession. At year end TOT collections exceeded budget by
almost $1.8 million also contributing to the increased General Fund balance.
GENERAL FUND COMPARATIVE INCOME STATEMENT
Excess of revenues over expenditures
20,204,929
Fiscal Year
9,430,360
46.67%
Other Financing Sources (Uses)
Unaudited
$
%
Transfers in
2010
2011
Change
Change
General Fund Revenues:
(20,677,752)
(17,445,588)
3,232,164
- 15.63%
Property Taxes
$ 71,999,967
$ 71,630,345 $
(369,622)
- 0.51%
Sales Taxes
17,440,736
18,455,181
1,014,445
5.82%
Sales Taxes In Lieu
4,539,946
6,284,266
1,744,320
38.427.
TOT Taxes
11,400,710
13,082,451
1,681,741
14.75%
All other Revenues
41,533,523
41,763,113
229,590
0.55%
Total Revenues
146,914,882
151,215,356
4,300,474
2.93%
General Fund Expenditures:
$ 82,157,866
$ 63,378,655
$ (18,779,211)
- 22.86%
General Government
15,086,125
14,934,808
(151,317)
- 1.00%
Public Safety
56,108,046
57,177,787
1,069,741
1.91%
Public Works
25,681,411
24,669,717
(1,011,694)
- 3.94%
Community Development
8,097,847
7,644,104
(453,743)
-5.60%
Community Services
13,109,514
14,215,085
1,105,571
8.43%
Capital outlay
8,627,010
1,982,787
(6,644,223)
- 77.02%
Debt Service
-
955,779
955,779
N/A
Total Expenditures
126,709,953
121,580,067
(5,129,886)
- 4.05%
Excess of revenues over expenditures
20,204,929
29,635,289
9,430,360
46.67%
Other Financing Sources (Uses)
Transfers in
1,519,725
331,088
(1,188,637)
- 78.21%
Transfers out (Excluding FFP Transfer)*
(20,677,752)
(17,445,588)
3,232,164
- 15.63%
Issuance of Debt
1,500,000
(1,500,000)
- 100.00%
Total other financing sources (uses)
(17,658,027)
(17,114,500)
543,527
-3.08%
Net Change in Fund Balance (Pre FFP Transfer)*
2,546,902
12,520,789
9,973,887
391.61%
Fund Balances, beginning
79,610,964
82,157,866
2,546,902
3.20%
Fund Balances, Ending (Pre FFP Transfer)*
82,157,866
94,678,655
12,520,789
15.24%
FFP Transfer Out*
-
(31,300,000)
(31,300,000)
N/A
Fund Balances, ending (Post FFP Transfer)*
$ 82,157,866
$ 63,378,655
$ (18,779,211)
- 22.86%
*In FY 11 $31.3 Million was transferred to separate Facilities Financing Plan Fund
3
GENERAL FUND RESERVES
Marian Bergeson Pool Contribution
- 330,000
Unaudited
Airport Issues
- 100,000
2010
2011
Change
Non - spendable
$ 1,641,672
$ 1,366,754
$ (274,918)
Restricted
1,692,533
1,681,333
(11,200)
Committed
2,500,000
Unassigned (Appropriations Reserve)
16,795,288 20,508,581
Facilities Financing Plan *
27,500,000
31,300,000
3,800,000
Contingency Reserve
18,895,125
21,841,467
2,946,342
Recreation Reserves
443,522
452,448
8,926
Parking Reserves
235,506
238,876
3,370
Cable Franchise
1,356,143
1,360,385
4,242
Capital Reappropriations
3,993,497
2,617,100
(1,376,397)
Other Miscellaneous
3,897,380
3,962,476
65,096
Assigned
PERS Rate Reserve
5,000,000
5,000,000
-
Change in FV of Investment
707,200
369,235
(337,965)
Neighborhood Revitalization
-
650,000
650,000
Tidelands Management
200,000
200,000
Marian Bergeson Pool Contribution
- 330,000
330,000
Airport Issues
- 100,000
100,000
MOD - Tree Replacement Program
- 75,000
75,000
Economic Development
- 75,000
75,000
Median Maintenance Program
- 50,000
50,000
Lower Newport Bay Dredging - Loan
- 2,500,000
2,500,000
Unassigned (Appropriations Reserve)
16,795,288 20,508,581
3,713,293
Pre FFP Transfer
82,157,866 94,678,655
12,520,789
FFP Transfer Out*
- (31,300,000) *
(31,300,000)
Net General Fund Balance
$ 82,157,866 $ 63,378,655 $
(18,779,211)
*In FY 11 $31.3 Million was transferred to separate Facilities Financing Plan Fund
OTHER UNRESTRICTED SIGNIFICANT CASH RESERVES
4
Unaudited
2010
2011
Change
Other Strategic Reserves
Insurance Reserve
21,534,586
21,473,510
(61,076
Compensated Absences
1,841,034
2,286,093
445,059
Equipment Maintenance
17,068,462
18,513,368
1,444,906
Total Assigned
$ 40,444,082
$ 42,272,971
1,828,889
4
FACILITIES FINANCING PLAN RESERVE
Council Policy F -28 Facilities Replacement
Program, approved in August 2009,
establishes a long -term facilities financing
plan (FFP) for the replacement of all General
Fund supported facilities (Civic Center, Fire
Stations, Police Stations and Parks). The FFP
provides a consistent, level funding plan to
minimize negative impacts on the General
Fund in any given year, while also ensuring
the City is able to maintain its high quality
facilities. The City has been reserving these
funds in a Facilities Replacement Reserve
within the General Fund.
FACILITIES FINANCING PLAN FUND
Beginning Balance 7/1/10
Revenues
Transfer In from General Fund
Interest Income
Total Revenues
Expenditures
2010 Civic Center COPS Debt Service
OASIS Construction
Total Expenditures
Ending Balance 6/30/11
31,300,000
275,381
31,575,381 1
(682,755)
(5,027,920)
(5,710,675)
25,864,706 1
With the financing of the Civic Center Project and completion of the OASIS Senior Center, the City
transferred $31.3 million to a separate financing fund that will be used to accumulate resources to pre -
fund debt service or cash fund construction of projects on the Facilities Replacement Plan. In FY 2010-
1 1, $5 million was used to cash fund the remaining balance of the completed OASIS Senior Center
construction. After accounting for interest earnings and net debt service payments on the 2010 Civic
Center bonds, the remaining FY 2010 -11 FFP Reserve balance was $25.5 million. The balance of the FFP
Reserve has grown to more than $33.5 million after a major developer contribution dedicated to the
facilities plan was received during FY 2011 -12.
SPECIAL NOTE: The FFP was the winner of the prestigious "Helen Putnam Award - Internal Administration
category" from the League of California Cities in 2008.
DEPARTMENT EXPENDITURE PERFORMANCE
5
FY 2010 -11
FY 2009 -2010
Actual Expense
FY 11 Original
Unaudited
Encumbrances
Plus
YOY
Department
Budget
Amended Budget
Actual
Outstanding
Balance
Encumbrances
Difference
City Council
$ 1,044,410
$ 1,157,154
$ 1,138,753
$ 11,979
$ 6,422
$ 1,172,962
$ (22,230)
City Clerk
492,538
501,377
453,521
-
47,856
383,833
69,688
City Manager
2,437,018
2,442,047
2,058,404
62,599
321,044
2,088,159
32,843
Human Resources
2,292,046
2,358,430
2,165,106
14,886
178,438
2,366,541
(186,549)
City Attorney
2,348,842
2,657,045
2,724,204
9,886
(77,045)
2,698,103
35,987
Administrative Svcs
7,775,976
7,868,950
7,812,204
37,265
19,480
7,503,455
346,015
Police
42,823,171
43,628,670
41,402,375
314,658
1,911,637
43,749,454
(2,032,422)
Fire
34,055,183
34,604,933
33,228,362
114,907
1,261,664
33,544,917
(201,648)
Planning
3,005,540
3,286,618
2,870,470
92,061
324,087
3,438,823
(476,292)
Building
4,237,603
4,356,217
4,256,870
8,790
90,556
4,411,041
(145,380)
General Services
22,034,946
22,331,234
20,794,708
198,184
1,338,342
22,244,235
(1,251,343)
Library
6,472,808
7,242,289
6,581,788
16,411
644,090
6,575,684
22,515
Recreation
7,590,671
7,823,449
7,222,603
73,931
526,915
6,614,056
682,479
Public Works
5,550,535
5,985,842
5,573,782
127,471
284,590
5,822,508
(121,256)
Utilities
1,307,491
1,346,771
1,170,070
21,473
155,227
1,187,794
3,749
C.I.P.
5,054,497
3,675,468
1,982,787
1,028,992
663,689
8,041,777
(5,029,998)
OPEB
2,128,000
-
-
-
-
-
-
Debi Service
780,000
780,000
765,000
-
15,000
-
765.000
Total Expenditures
$ 151,431,275
$ 152,046,494
$ 142,201,007
$ 2,133,493
$ 7,711,994
$ 151,843,343
(7,508,842)
5
Treasury Summary
Certificates of Deposit
%
Porfolio Diversification
a
Commercial Paper t June 30, 2011
0% 1 Municipal Bonds
\ 0%
ODA
s%
$hot -Term
14%
AIF `MMF
s% o%
gency -Cash & Equivalent
51%
si% z%
Portfolios Acronyms Defined - Local Agency Investment Funds (LAIF),
Demand Deposit Accounts (DDA), Money Market Funds (MMF)
Investment Portfolio
(Excludes Bond Proceeds)
$200 $V7 .9M $ 807
$152.6M 167.4M
$150
0
0
$100
s
$50
09/30/2010 12/31/2010 03/3^ /2011 06/30/2011 09/30/2011
® Medium Term POdolio l $132,662,104 $147.502092 5147,834,001 $154,019,913 $154,586,128
F$horf Term Porfollo $19,902,449 I $30,439,340 $'9514812 $26,689,553 $28,240,341
6
Council Policy F -1 Statement of
Investment Policy identifies that
our overall investment objectives
for the City's Investment
portfolio is safety, liquidity and
yield. With respect to safety,
we attempt to mitigate credit
risk by maintaining a portfolio
of high quality investments
diversified by sector and issuer.
We attempt to mitigate market
risk by limiting and diversifying
average life duration and final
maturity of investments. We
achieve liquidity by anticipating
cash flows, purchasing securities
with staggered maturity dates
to meet our cash flows and
limiting our investment choices
to those securities that have an
active secondary market. With
safety and liquidity as our primary
investment objectives, we then
strive to achieve a reasonable
rate of return relative to the risks
being assumed.
Although in the last year the City
has completed some additional
streamlining and has significantly
improved the reporting and
transparency of the investment
program, Treasury Management
was effectively outsourced by
the City in the early nineties.
The City currently employs three
professional investment advisors
to manage the medium term
component of the treasury
portfolio. With an operating
portfolio exceeding $180 million,
and divided staff time, using
outside professional investment
advisors has been a successful
strategy for the City.
PORTFOLIO CHARACTERISTICS
Duration
1.507
1.708
Weighted Avg Life
1.615
1.784
Weighted Avg Maturity
1.856
2.027
Weighted Avg Effective Maturity
1.552
1.768
Yield to Maturity at Market
0.609%
0.672%
Yield to Maturity at Cost
1.388 ° /a
1.306%
Avg Credit Rating
AA + /Aal /AA+
I AA/Aa2 /AA
While the investment portfolio grew slightly over $30 million during the course of the fiscal year, treasury
yields hit all -time lows due to federal quantitative easing policies, sovereign debt issues home and abroad,
and the S &P downgrade of US debt and related securities. Ironically, in a flight to quality, investors poured
into US Treasuries, the very security that was downgraded. Consequently, the influx of cash flow into
treasuries brought treasury yields down even further. The Federal Reserve policy has vowed to keep the
short-term Fed funds rate between 0 -.25% through mid 2013. The latest Federal Reserve policy to twist the
yield curve is intended to also keep long -term interest rates in a further attempt to stimulate the economy.
TREASURY YIELDS
Quarter Ending
3 Month
I 1 Year
1 2 Year
1 3 Year
1 5 Year
09/30/2010
0.16%
0.27%
0.42%
0.64%
1.27%
12/31/2010
0.12%
0.29%
0.61%
1.02%
2.01%
03/31/2011
0.09%
0.30%
0.80%
1.29%
2.24%
06/30/2011
0.03%
0.19%
0.45%
0.81%
1.76%
09/30/2011
0.02%
0.13%
0.25%
0.42%
0.96%
Consequently, fixed income yields are currently very low as illustrated by the summary of Treasury yields
depicted above.
The total return on the investment is also trending lower from a historical perspective as illustrated by the
Portfolio Performance chart below.
PORTFOLIO PERFORMANCE
As of June 30. 2011
Complete detailed Treasury reports are available online at www.newportbeachca.gov /treasury.
7
1 Year
3 Year
5 Year
Benchmark
1.35%
2.76%
4.04%
Manager:
Chandler
1.84%
3.62%
4.60%
PFM
1.77%
3.53%
4.58%
Cutwater
0.98%
2.977.
4.16%
Complete detailed Treasury reports are available online at www.newportbeachca.gov /treasury.
7
CaIPERS Pension
CALPERS PENSION
Public pension contribution rates have been the topic of much debate for more than a decade. Due to a
string of successful years in the equities markets, many pension plans, were at their peak funded status in the
late nineties. In fact, in 1998, the Newport Beach CaIPERS Miscellaneous employee pension plan was funded
at 142.5% of accrued pension liability while the Safety plan was funded at 117.1 % of accrued pension liabili-
ty, on a market value basis. Unfortunately, in the wake of the dot com crash, the good fortune in the equities
markets did not continue. CaIPERS did not meet their expected earnings rates in 2001, 2002 and 2003 and
then again suffered massive equities losses in 2008 and 2009. Poor investment performance combined with
increase pension benefits lead to the current pension problems today. Based on our June 30, 2010, actuarial
valuation (used to set contribution rates for 2012 -13) the funded - status of our pension plans has dropped to
63.8% for the Miscellaneous Plan and 58.4% for the Safety plan. The combined unfunded liability totals nearly
$150 million on an actuarial value basis and over $250 million on a market value basis.
While not alone in this dilemma, the Newport Beach City Council has identified pension reform as one of its
top priorities in 2011 and is an integral part of the City's 15 -point Fiscal Sustainability Plan. Newport Beach
is addressing this issue by seeking increased employee contributions to the pension plan, seeking lower
benefit tiers and restructuring departments to achieve greater efficiencies. Already, the City has reached
agreement with Miscellaneous employees for an 87. employee contribution.
NEW ACCOUNTING STANDARD PROPOSED FOR PENSION ACCOUNTING
In June 2010, the Governmental Accounting Standards Board (GASB) released a new accounting
exposure draft intended to improve the visibility and quality of pension information contained in
governmental financial statements.
In summary, if the exposure draft is approved, the City would be required to record a liability on its
Government Wide balance sheet associated with the unfunded liability mentioned above.The City would
be required to record accrued pension costs in a defined manner which may differ significantly from our
actuarial funding schedule. The accounting standard may limit both the discount rate used to measure
future liabilities and the amortization period in which actuarial gains and losses can be amortized. The
cumulative impact of the proposed standard would significantly accelerate the recognition and volatility
of pension expenses.
While this standard is still in draft form, if approved, the new pension reporting standard will have some
significant impacts on future pension financial reporting and has not been universally embraced. A
coalition of 21 issuers, public pension and professional associations submitted a joint two -page comment
letter, stating the draft represents "radical departure from long -held practice" and the proposal would
significantly alter how state and local governments account for pension benefits and create "much
confusion." Collectively, the groups - including the Government Finance Officers Association (GFOA), the
National League of Cities and the U.S. Conference of Mayors - said GASB should "clearly and specifically
articulate" that the new accounting measures are not based on, and should not be used for, government
pension funding and budgeting. Separately, the GFOA submitted a comment letter saying it "adamantly
opposes" the Board's proposal to "abandon" the annual required contribution (ARC) as the basis for
measuring pension cost. Such a move "would mark a major step backward," the GFOA said. In particular,
the group noted, "the unfunded actuarial accrued liability is simply too volatile to display as a liability on
the face of the financial statements." The GFOA also said there was no "cause to jettison" the ARC "in
favor of an alternative approach that promises little in the way of information of practical use to actual
public- sector decision makers."
Finance staff has met with CalPERS Chief actuary Allan Milligan and other cities and actuaries to discuss
the potential impacts of the exposure draft if implemented. The final rules are slated for release in June
2012. Staff will keep the Council apprised of future changes to the status of this exposure draft.
PERS FUNDING STATUS & RATE TREND
1. Funded Status based on plan Assets calculated on an Actuarial Value basis.
2. Funded Status based on plan Assets calculated on a Market Value basis.
3. Funded status not available for these years
4. Rates reflect the total contribution rates required by the plans irrespective of current employee paid member
contributions and or negotiated cost sharing agreements.
5. Projected by PERS Actuaries
6. Projected by PERS Actuaries
9
Funded Status
Unfunded
Unfunded
Annual
Accrued
Liability-
Liability-
Combined
Covered
Valuation
Liability
AVA Basis
MVA Basis
Fiscal
Employee
Employer
Contribution
Payroll
Date
(Millions)
(Millions)
(Millions)
AVA(1)
MVA(2)
Year
Rate(4)
Rote(4)
Rote(4)
(Millions)
Misc Plan
1998
$
81.7
$
(25.9)
$
(37.8)
131.70%
146.30%
2001
7.00%
0.00%
7.00%
$
26.87
1999
$
94.3
$
(31.2)
$
(39.5)
133.00%
141.80%
2002
7.00%
0.00%
7.00%
$
29.91
2000
$
101.4
$
(35.7)
$
(43.0)
135.20%
142.50%
2003
7.00%
0.00%
7.00%
$
31.59
2001
$
110.3
$
(30.9)
$
(21.4)
128.00%
119.40%
2004
7.007
0.00%
7.00%
$
34.08
2002
$
120.0
$
(12.5)
$
(0.5)
110.40%
100.40%
2005
7.00%
4.33%
11.33%
$
34.22
2003
$
140.0
$
5.8
$
18.1
95.80%
87.10%
2006
7.00%
9.487.
16.48%
$
37.22
2004
$
151.3
$
10.3
$
12.6
93.20%
91.70%
2007
7.00%
9.13%
16.13%
$
36.80
2005
$
161.4
$
10.6
$
6.3
93.40%
96.10%
2008
7.00%
8.69%
15.69%
$
41.15
2006
$
183.7
$
20.5
$
10.6
88.80%
94.20%
2009
8.00%
11.48%
19.48%
$
42.89
2007
$
192.2
$
13.6
$
(14.8)
92.90%
107.70%
2010
8.00%
10.15%
18.15%
$
40.59
2008
$
217.4
$
21.4
$
17.6
90.10%
91.90%
2011
8.00%
10.83%
18.83%
N/A
2009
$
249.7
$
41.9
$
97.0
83.20%
61.10%
2012
8.00%
14.63%
22.63%
N/A
2010
$
269.5
$
51.2
$
97.5
81.00%
63.80%
2013
8.00%
16.40%
24.40%
N/A
2011(3)
N/A
N/A
N/A
N/A
N/A
2014(5)
8.00%
16.70%
24.70%
N/A
2012(3)
N/A
N/A
N/A
N/A
N/A
2015(5)
8.00%
16.90%
24.90%
N/A
Safety Plan
1998
$
137.0
$
(7.4)
$
(23.4)
105.40%
117.10%
2001
9.00%
5.66%
14.66%
$
18.82
1999
$
157.3
$
(13.1)
$
(24.2)
108.307.
115.40%
2002
9.00%
5.15%
14.15%
$
18.76
2000
$
178.5
$
(9.3)
$
(19.1)
105.20%
110.70%
2003
9.00%
8.70%
17.70%
$
21.43
2001
$
197.3
$
2.1
$
15.4
98.90%
92.20%
2004
9.00%
17.587.
26.58%
$
21.82
2002
$
212.7
$
28.5
$
45.3
86.60%
78.70%
2005
9.00 %,
26.10%
35.10%
$
22.96
2003
$
229.2
$
40.8
$
57.9
82.20%
74.70%
2006
9.00%
26.70%
35.70%
$
26.05
2004
$
250.6
$
49.8
$
52.9
80.10%
78.90%
2007
9.00%
25.45%
34.45%
$
25.03
2005
$
267.2
$
51.3
$
44.9
80.80%
83.20%
2008
9.00%
26.10%
35.10%
$
28.06
2006
$
296.5
$
64.7
$
50.0
78.20%
83.10%
2009
9.00%
29.67%
38.67%
$
30.25
2007
$
308.6
$
58.5
$
16.5
81.00%
94.70%
2010
9.00%
28.76%
37.76%
$
29.76
2008
$
336.1
$
71.4
$
64.0
78.70%
81.00%
2011
9.00%
30.20%
39.20%
N/A
2009
$
366.9
$
92.3
$
165.9
74.90%
54.80%
2012
9.00%
35.03%
44.03%
N/A
2010
$
382.3
$
97.7
$
159.0
74.40%
58.40%
2013
9.00%
35.93%
44.93%
N/A
2011(3)
N/A
N/A
N/A
N/A
N/A
2014(5)
9.00%
36.30%
45.30%
N/A
2012(3)
N/A
N/A
N/A
N/A
N/A
2015(5)
9.00%
36.60%
45.60%
N/A
1. Funded Status based on plan Assets calculated on an Actuarial Value basis.
2. Funded Status based on plan Assets calculated on a Market Value basis.
3. Funded status not available for these years
4. Rates reflect the total contribution rates required by the plans irrespective of current employee paid member
contributions and or negotiated cost sharing agreements.
5. Projected by PERS Actuaries
6. Projected by PERS Actuaries
9
2011 -12 Revenue "Here and Now"
As the first quarter comes to a close we review the early results of the new fiscal year. Although it is
generally too early to make any substantive assessments, we do have our first analysis for the year ahead
and as expected it is trending slightly higher than last fiscal year.
aneral Fund Revenues:
Property Taxes
Sales Taxes
Transient occupancy Tax
Business Licenses
Franchises
Community Development
Recreation
Other
Total GF Revenues
Revenues through 9/30
2U I I 2U12
$Change 76 Change
$ 2,403,202
$ 2,397,266
$ (5,936)
-0.25%
1,133,897
1,227,287
93,390
8.24%
3,211,861
3,485,041
273,180
8.51%
976,209
977,749
1,540
0.16%
219,063
224,963
5,900
2.69%
1,211,601
1,306,922
95,322
7.87%
1,875,548
2,335,379
459,832
24.52%
5,783,900
6,704,189
920,290
15.91%
16,815,280
18,658,797
1,843,517
10.96%
PROPERTY TAX
Property tax collections to date only represent the remittance of supplemental taxes and prior taxes and
penalties. The first remittance of secured taxes is not scheduled until November 9, 2011. However, the
City of Newport Beach has experienced positive assessed value(AV) growth even through the toughest
economic times. After meeting with the County Assessor's Office, we had expected a slight decrease
due to a -.25% CPI adjustment in FY 2010-11. In reality we experienced a +.25% CPI adjustment and then
exceeded budget by an additional I% above that. Homes in Newport Beach take longer to sell than
most other California cities, approximately eight months on average, but sell for a higher median price,
$1.3 million.
Secured property tax grew by +1.27% reflecting a +,7517. CPI adjustment, due to new construction in the
Fashion Island area and net reassessments from property sales and or assessment appeals. Unsecured
property taxes (e.g. business equipment and boats) decreased by - 4.31 %. The net result is that the overall
property fax levy, as of September 30, 2011, grew by +1.03% compared to FY 2010-11.
2011 -2012
Secured 37,550,412,836
Unsecured 1,556,752,313
Total AV 39,107,165,149
10
2010 -2011
37,080,217,275
1,626,947,910
38,707,165,185
Change in AV
% Change
470,195,561
1.27%
(70,195,597)
- 4.31%
399,999,964
1.03%
The levy tends to change during the course of the year as supplemental adjustments to the tax roll
occur. We will continue to monitor the levy throughout the year and report back quarterly through the
City Manager's Quarterly Business Report (QBR).
While the current AV growth is only 1.03 %, well below long -term historical averages, the City is
encouraged that the housing market appears to have stabilized after several years of sharp declines. By
comparison to the current growth rate of 1.03 %, the ten -year average annual AV growth trend is 7.16%
while the twenty -year average annual AV growth totals 5.64 %.
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
-2.00%
SALES TAXES
+ASSessetl VaWe GrowN
P P O O O O O N
1l1 n P 1f1 9 O.
P P P O O O O O O
Sales tax collections to date only represent a State advance for the July 2011 reporting period. Generally,
consumer spending has come back from the depths of the recession, but recent activity has been at a mild
to moderate pace. Activity is still for short of the heights of the previous economic expansion as the weak job
market, economic uncertainty and high energy prices and housing equity issues restrain consumer spending.
As a result, we believe consumer sentiment and spending patterns will be fragile. Newport Beach continues
to improve in the areas of restaurants and high end auto sales. We built in a minimal sales tax increase over
fiscal year 2010 -11 of 4% and with this first quarter we appear to be on track to meet budget in this revenue
area.
TRANSIENT OCCUPANCY TAXES
Hotel and residential Transient Occupancy Taxes (TOT) exceeded budget by 15% during fiscal year
2010-11. Even with the continued economic uncertainty, Newport Beach hotels were improving over the
previous double dip declines experienced during 2008 and 2009. Expecting this positive gain to maintain
during the new fiscal year, we built in a 10% increase to the FY 2011 -12 budget compared to FY 2010-
1 1. After the first quarter receipts, we are trending to meet budget with $3.8 million in early collections
compared to $3.6 million for the same quarter last year.
RECREATION PROGRAMS
For the quarter, recreation revenues are up over the prior year due for two primary reasons. The OASIS
Senior Center facility did not officially reopen until October of 2010 so Recreation revenues were
artificially low in the prior year. Also, fee -based classes, including surfing, sailing and OASIS fitness center
revenues are up significantly over the prior year. It is important to note that the increase in recreation
revenues is a result of increased participation and not increased fees.
11
Zrk
820
01f,
N
c
0
0 780
a
w
0
760
740
720
827
SMARTER, FASTER, SMALLER
832 833
792
758
2009 2010 2011 2012
Adopted
Fiscal Year
The City has been very proactive in restructuring and making strategic cuts in department operations,
striving to evolve into a smarter, faster, smaller local government. Through a combination of an early
retirement plan, attrition, outsourcing and some lay -offs, the full -time work -force has been reduced nearly
10% as depicted in the chart above.
"STILL NOT DONE"
We have survived the recession, but it was not without hard choices and significant budget reductions.
We have increased General Fund Reserves in keeping with our Fiscal Susfainability Plan, but as our City
Manager has said, we continue to look forward. This includes addressing our rising pension costs, replacing
outdated Information Technology (I.T.) infrastructure, continuing to work with our neighbors to share
services where appropriate, and continuing to look for opportunities where it may make sense to contract
out City services. Our City has made these hard choices with the support of our Council and we will
continue to move forward to be a better organization.
OTHER COUNCIL COMMUNICATION
With respect to administrative procedures concerning Council Policy F -14, Authority to Contract for
Services, Ocean Adventure Programs, Inc. (OAP) is an Independent Recreation Contractor for the City of
Newport Beach with a contract that commenced on October 1, 2010 and expires on December 31, 2012.
Per OAP's contract, they offer youth classes & camps on a year -round basis that include programs in
science, ocean safety, marine education, and surfing which are offered through the Newport Navigator
brochure. The programs served 558 youth through September 31, 2011, in which the City paid OAP
$177,547 in user fees based on their contract terms.
12
& Committees Report
city of newport beach I city manager's office
www.newportbeachco.gov i 949.644.3001
The City has 24 active Boards, Commissions and Committees which meet on a regular basis.
The members of these groups dedicate many hours to ensure the missions and goals of the
City Council are accomplished. Each group has City staff which supports these efforts in a
variety of ways. The attached reports offer a reflective look at the current work of each group
and the direction they are taking.
A
Board of Library Trustees
PURPOSE:
Appointed by the Newport Beach City Council, the
Board of Library Trustees is a policy- making board
responsible for the administration of City libraries.
The Board considers the annual budget for library
purposes during the process of its preparation
and makes recommendations to the City Council
and City Manager. The Board also approves or
disapproves the appointment, suspension, or
removal of the Library Services Director. Subject to
the approval of the City Council, the Board accepts
money, personal property, or real estate donated
to the City for library purposes, and contracts with
schools, county, or other governmental agencies to
render or receive library services or facilities.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 708
COMMITTEE MEMBERS:
Lynn Crutchley (Chair), Stephanie Murguia, Jerry
King, Jill Johnson- Tucker, Eleanor M. Palk
LENGTH OF TERM FOR MEMBERS:
The five members of the Board serve for a term
of four years and until their respective successors
are appointed and qualified. The terms are on a
staggered basis.
FREQUENCY OF MEETINGS:
Monthly on the first Monday at the Central Library
unless noticed otherwise.
STAFF LIAISON:
Cynthia Pulliam Cowell, MLS,
Library Services Director
STAFF SUPPORT:
Staff estimates approximately 16 hours a month are
allocated to the Library Board.
QUARTERLY PROGRESS REPORT:
During the quarter, the Board:
• Held a public discussion on the status of the
Balboa Branch.
• Amended the Board of Library Trustees
By -Laws; instead of having two meetings
on the first and third Tuesdays of each
month, meetings will now be held on the
first Monday of every month, commencing
in FY 2011/12.
• Reviewed the Library's marketing
efforts over the past year.
17
Building & Fire Board
of Appeals
PURPOSE:
Determine the suitability of alternate materials and
methods of construction; to provide for reasonable
interpretations of the provisions of the Building
and Fire Codes; to hear written appeals regarding
the Chief Building Official's or Fire Marshal's
determinations.
COMMITTEE AUTHORIZATION:
Uniform Administrative Code, Section 201 and
NBMC 15.02.120
COMMITTEE MEMBERS:
Brian S. Jeannette (Chair), Robert W. Yant (Vice
Chair), George Crall, James Anderson, Ernie Liske,
Richard R. Luehrs, Stephen Sandland QUARTERLY PROGRESS REPORT:
The Board met on September 21, 2011, and
LENGTH OF TERM FOR MEMBERS: ratafed a new Structural Observation policy
The seven members of the Board serve for a term proposed by the Building Division.
of four years on a staggered basis.
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Ron Gamble, Chief Fire Marshal
Seimone Jurjis, Chief Building Official
STAFF SUPPORT:
The Building and Fire Board of Appeals meets on
an as needed basis. When the Board is called into
session, staff estimates approximately six hours of
staff time are allocated to each session. Costs for
services are recovered by the payment of appeal
application fees established by City Council
resolution. If an item presented to the Board is staff
generated, then no fees are recovered.
18
City Arts Commission
PURPOSE:
Appointed by City Council, the City Arts Commission
acts in an advisory capacity to the City Council
in all matters pertaining to artistic, aesthetic and
cultural aspects of the City. The City Arts Commission
also recommends to the City Council the adoption
of such ordinances, rules and regulations as it
may deem necessary for the administration and
preservation of fine arts, performing arts, historical,
aesthetic and cultural aspects of the community.
On behalf of the City, the Arts Commission actively
encourages programs for the cultural enrichment
of the community and performs such other duties
relating to the arts as the City Council
may require.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 712
COMMITTEE MEMBERS:
Robyn Grant (Chair), Robert Smith (Vice Chair),
Rita Goldberg (Secretary), Carole Boller,
Christopher Trela, Arlene Greer, Gilbert Lasky
LENGTH OF TERM FOR MEMBERS:
The seven members of the Board serve for a term
of four years and until their respective successors
are appointed and qualified. The terms are on a
staggered basis.
FREQUENCY OF MEETINGS:
Monthly on the second Thursday at the Central
Library unless noticed otherwise.
STAFF LIAISON:
Jana Barbier, Cultural Arts Coordinator
STAFF SUPPORT:
Staff estimates approximately 40 hours a month are
allocated to this Commission.
QUARTERLY PROGRESS REPORT:
During the quarter, the Arts Commission:
• Sponsored the production and
performances of two Shakespearean Plays
at Bonita Canyon Sports Park ("(ing Lear"
and "Much Ado About Nothing ").
• Approved art exhibitions at City Hall and
two display areas at Central Library.
• Approved a museum tour for the public to
the Norton Simon Museum in Pasadena.
• Sponsored the production and
performance for one of two Concerts in the
Parks this summer.
• Approved the administration of the City of
Newport Beach Cultural Arts Grant Program
funding opportunities for regional and local
arts organizations.
• Considered several public art projects.
19
Civil Service Board
PURPOSE:
Advise the Council on personnel matters,
recommend changes to the Civil Service System
Rules and Regulations, conduct appeal hearings
of City employees for disciplinary issues and
launch personnel administration investigations
for City employees covered by one of the Safety
Bargaining Units (FFA, FMA, LMA, NBPA and
PMA) and report its findings to City Council and
Manager.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Sections 710 & 711
COMMITTEE MEMBERS:
Debra Allen (Chair), Douglas Coulter, James
"Mickey" Dunlap (Vice Chair), Hugh Logan and
Maiqual Talbot
LENGTH OF TERM FOR MEMBERS:
The five members of the Board serve for a term of
four years on a staggered basis.
FREQUENCY OF MEETINGS:
Monthly, on the 1 st Monday
STAFF LIAISON:
Terri Cassidy, Human Resources Director / Secretary
to the Board and Jyll Ramirez, Administrative
Assistant to the HR Director
STAFF SUPPORT:
Staff estimates approximately 20 -25 hours a month
are allocated to this Board.
1
QUARTERLY PROGRESS REPORT:
In the past three years, the Civil Service Board
has launched an investigation into the Police
Department's Promotional Process at the
request of the Police Management Association,
conducted two employee appeal hearings,
made recommendations to the Council /Charter
Update Commission and approved numerous
eligibility lists and recruitments.
Harbor Commission
PURPOSE:
The purpose of the Harbor Commission is to
provide the City of Newport Beach with an
advisory body representing the diverse uses of
Newport Harbor and its waterfront.
A. Advise the City Council in all matters pertaining
to the use, control, operation, promotion and
regulation of all vessels and watercraft within
the Newport Harbor.
B. Approve, conditionally approve, or disapprove
applications on all harbor permits where the
City of Newport Beach Municipal Code assigns
the authority for the decision to the Harbor
Commission.
C. Serve as an appellate and reviewing body
for decisions of the City Manager on harbor
permits, leases, and other harbor - related
administrative matters where the City of
Newport Beach Municipal Code assigns such
authority to the Harbor Commission.
D. Advise the City Council on proposed harbor-
related improvements.
E. Advise the Planning Commission and City
Council on land use and property development
applications referred to the Harbor Commission
by the City Council, Planning Commission, or the
City Manager.
F. Make recommendations to the City Council
for the adoption of regulations and programs
necessary for the ongoing implementation of
the goals, objectives, and policies of the Harbor
and Bay Element of the General Plan.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 702
COMMITTEE MEMBERS:
Duncan McIntosh, Ralph Rodheim, Brad Avery,
Vincent Valdes, Doug West, Marshall Duffield,
Karen Rhyne and City Council Liaison Nancy
Gardner
LENGTH OF TERM FOR MEMBERS:
The seven members of the Commission serve for a
term of four years on a staggered basis.
FREQUENCY OF MEETINGS:
Second Wednesday of each month.
STAFF LIAISON:
Chris Miller, Harbor Resources Manager
Shannon Levin, Harbor Resources Supervisor
STAFF SUPPORT:
Staff estimates approximately 25 hours per
month are allocated to this Commission.
QUARTERLY PROGRESS REPORT:
During this quarter, the Commission:
• Welcomed Brad Avery as the newest
Commissioner,
• Elected new officers for the following year,
• Approved an extension for the catamaran
"Cheyenne" to moor in the harbor,
• Discussed and approved Harbor Commission
goals for fiscal year 2011-12; and
• Reviewed various harbor related issues and
projects including, Harbor Visioning, Harbor
guide modifications, Rhine Channel
dredging, Lower Bay dredging, Tidelands
Management Committee, sea lions and
sand replenishment.
21
Parks, Beaches &
Recreation Commission
PURPOSE:
A. Act in an advisory capacity to the City Council
in all matters pertaining to parks, beaches,
recreation, parkways and street trees.
B. Consider the annual budget for parks, beaches,
recreation, parkways and street
tree purposes during the process of its
preparation and make recommendations with
respect there to to the City Council and the City
Manager.
C. Assist in the planning of parks and recreation
programs for the inhabitants of the City,
promote and stimulate public interest therein,
and to that end solicit to the fullest extent
possible the cooperation of school authorities
and other public and private agencies
interested therein.
D. Establish policies for the acquisition,
development and improvement of parks,
beaches and playgrounds and for the planting,
care and removal of trees and shrubs in all
parks, playgrounds and streets, subject to the
rights and powers of the City Council.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Section 709
COMMITTEE MEMBERS:
Phillip Lugar (Chair), Kathy Hamilton (Vice Chair),
Tom Anderson, Ron Cole, Roy Englebrecht, Marie
Marston and Jack Tingley
LENGTH OF TERM FOR MEMBERS:
The seven members of the Commission serve for a
term of four years on a staggered basis.
FREQUENCY OF MEETINGS:
Monthly
STAFF LIAISON:
Laura Detweiler, Recreation & Senior Services
Director Mark Harmon, Municipal Operations
Director
22
STAFF SUPPORT:
Staff estimates approximately 57 hours per month
are allocated to this Commission. This includes staff
from the Recreation & Senior Services Department
and the Municipal Operations Department.
QUARTERLY PROGRESS REPORT:
Items the Parks, Beaches and Recreation
Commission considered in the last quarter
include:
• Election of Officers - Phil Lugar (Chair), Kathy
Hamilton (Vice Chair)
• Two (2) Bench donations- approved
• Newport Mesa Soccer Club request for
temporary lights at Bonita Canyon Park -
approved
• City Council Policy G -1- Retention or Removal
of City Trees revision- approved and
forwarded to Council for final approval
Projected Tasks:
• Dog nuisance dispenser donation
• Reforestation request
• Appointment of Beach Fire Rings Sub -
Committee
• Review of the Blue Gum Eucalyptus trees on
Fourth Avenue in Corona del Mar
• Review of bench donation program
Planning Commission
PURPOSE:
The Planning Commission has the following duties as
established by the City Charter:
A. After a public hearing thereon, recommended
to the City Council the adoption, amendment or
repeal of a Master Plan, or any part thereof, for
the physical development of the City;
B. Exercise such control over land subdivisions as is
granted to it by ordinance not inconsistent with
the provisions of the Charter;
C. Make recommendations to the City Council
concerning proposed public works and for
the clearance and rebuilding of blighted or
substandard areas within the City; and
D. Exercise such functions with respect to zoning and
land use as may be prescribed by ordinance not
inconsistent with the provisions the Charter.
COMMITTEE AUTHORIZATION:
City Charter, Article VII, Sections 706/707
COMMITTEE MEMBERS:
Charles Unsworth (Chairman), Michael Toerge (Vice
Chairman), Bradley Hillgren (Secretary), Fred Ameri,
Robert Hawkins, Kory Kramer, and Jay Meyers
LENGTH OF TERM FOR MEMBERS:
Four years
FREQUENCY OF MEETINGS:
Twice per month
STAFF LIAISON:
Kimberly Brandt, Community Development Director
STAFF SUPPORT:
Staff estimates approximately 25 hours per month
are allocated to this Commission.
QUARTERLY PROGRESS REPORT:
The Planning Commission met five times and
held a combined 14 public hearings. Other
actions included welcoming Commissioners
Kory Kramer and Jay Myers who replaced
long time Commissioners Barry Eaton and Earl
McDaniel and the election of officers: Charles
Unsworth (Chair), Michael Toerge (Vice Chair),
and Bradley Hillgren (Secretary).
The 14 public hearings included the following:
• Applications (discretionary projects)
approved: sic
• Applications (legislative) recommended to
the City Council for approval: four
• Appeals of Zoning Administrator decisions:
one (ZA approval was reversed)
• Applications denied: one
• Continued public hearings: two (Golf Fund
Realty and Newport Beach Country Club
applications)
Projected Tasks:
• Continuation of Golf Fund Realty and
Newport Beach Country Club public
hearings and recommendations to City
Council
• Housing Element public hearing and
recommendation to City Council
• Newport Banning Ranch Study Session
23
City Council
Committee
Redistricting
PURPOSE:
Realign City Council District Boundaries to represent
an even population distribution per the latest Census
2010 data.
COMMITTEE AUTHORIZATION:
Resolution 2011 -42
COMMITTEE MEMBERS:
Council Member Rosansky (Chair), Mayor Pro Tern
Gardner & Council Member Curry
LENGTH OF TERM FOR MEMBERS:
The Committee automatically sunsets upon the
adoption of a City Council ordinance confirming,
changing, or refining the boundaries of any or all of
the seven City Council Districts.
FREQUENCY OF MEETINGS
As Needed
STAFF LIAISON:
Patrick Alford, Planning Manager
Dan Campagnolo, Systems & Admin. Manager
STAFF SUPPORT:
Staff estimates approximately 60 hours were
allocated to this Committee.
QUARTERLY PROGRESS REPORT:
The City Council Redistricting Committee held
its final meeting on August 4, 2011, and made
recommended changes to the boundaries of the
City Council Districts.
The City Council held a study session on the
Committee's recommendation on September 27,
2011.
24
Finance Committee
PURPOSE:
Responsible for fiscal governance, the Finance
Committee reviews and monitors events and issues
which may affect the financial status of the City
and oversees adherence to the 15 -Point Fiscal
Sustainability Plan.
COMMITTEE AUTHORIZATION:
Established by Resolution 94 -110 and amended
from time -to -time.
COMMITTEE MEMBERS:
Council Member Keith Curry (Chair), Counci!
Member Leslie Daigle and Mayor Mike Henn
LENGTH OF TERM FOR MEMBERS:
Pursuant to Council Policy A -9, the Mayor
makes annual appointments, subject to Council
confirmation. There is no limit on the term Council
Members may serve on the Finance Committee.
FREQUENCY OF MEETINGS:
Monthly
STAFF LIAISON:
Tracy McCraner, Finance Director
STAFF SUPPORT:
Staff estimates approximately 106 hours per month
are allocated to this Committee. (It should be noted
that the majority of the materials and reports
provided to the Finance Committee are
typical financial reports that would need to be
produced and reviewed regardless of the Finance
Committee's existence.)
QUARTERLY PROGRESS REPORT:
Responsible for regular monitoring of events and
issues which may affect the financial status of
the City, the Finance Committee was updated
on the implementation of the parking meter and
enforcement program outsourced to Central
Parking Systems, Inc. (CPS). CPS has had a
successful implementation. Parking meter revenues
for the first three months increased more than 30%
compared to the same time last year. They also
upgraded more than the expected 1,600 meters
before the Memorial weekend deadline.
Fiscal governance being a responsibility of the
Finance Committee, the preliminary 6/30/11
Treasurer's Report on the City's investment portfolio
performance by the three investment advisors
was reviewed as well as the preliminary year -end
budget projections for fiscal year 2010-11.
The Finance Director reported on assessed
valuation growth in Newport Beach; presented
an annual status review of Infernal Service Fund
reserve levels which included recommendations
for adjustment to funds that were over and or
underfunded; and updated the Committee on
fiscal year 2010 -11 General Fund and Facilities
Financing Fund balances and reserves. Reserves in
these major funds were estimated to increase $5
million during the July 2011 meeting; however, this
projection increased to approximately $10 million
by September 2011. The September totals were
inclusive of all year -end accruals and post closing
adjustments made for the financial statement audit.
This June 30, 2011 audit should be complete by
December 2011 and fund balances will not be final
until then.
Prior to proceeding to Council for approval, the
Finance Committee was briefed on recommended
updates to the master fee schedule consistent with
market rate charges for City provided services and
market rate fees for utilization of City owned assets.
The four departments identified for study during
this year were Finance, Municipal Operations,
Recreation and Library. The Master Fee Schedule is
slated to go before full Council on November 8.
25
Citizens Bicycle
Committee
PURPOSE:
Promote bicycle safety and responsible cycling
within the City through public outreach, bicycle
facility improvements, and review of City policies
and practices related to bicycles.
COMMITTEE AUTHORIZATION:
Resolution 2010 -99
COMMITTEE MEMBERS:
Mayor Pro Tom Nancy Gardner (Chair), Thomas
Croxton, Barbara Danzi, John Heffernan, Sean
Matsler, Denis LaBonge, Anthony Petros, Stephen
Sholkoff
LENGTH OF TERM FOR MEMBERS:
The seven members of the Committee serve for a
term of one year.
FREQUENCY OF MEETINGS:
Monthly
STAFF LIAISON:
Steve Badum, Public Works Director
Brad Sommers, Senior Civil Engineer
STAFF SUPPORT:
The committee has a budget of $50,000 for bicycle
safety improvement projects. Staff from the
Public Works Department, GIS Division and Police
Department estimates approximately 50 -100 hours
per month are allocated to this Committee. In
addition, this quarter the Police Department's Traffic
Division conducted two bicycle safety operations for
a total of 30 hours.
26
Safety
QUARTERLY PROGRESS REPORT:
To date, City staff with the assistance of the
Bicycle Committee has completed the following:
Launched Bicycle Facilities and Information
website including the Draft Bicycle Map,
safety guidelines and a link for comments
and questions;
Prepared plans and solicited bids for an
informal contract for the construction
of bicicyle facility improvements on Coast
Highway, Bonita Canyon, and Newport
Coast Drive:
Prepared conceptual plans for a Sharrow
program on Coast Highway through Corona
del Mar;
Prepared construction plans for alternate
bike routes through Corona del Mar;
Deployed Sharrow pavement markings as a
pilot program along Bayside Drive;
Deployed SHARE THE ROAD and WATCH
DOWN HILL SPEED warning signs in Corona
del Mar and Newport Coast;
Prepared /distributed Safety Guidelines for
Bicyclists and Motorists pamphlet; and
Prepared /distributed letter to associations
regarding maintenance /parking practices in
bicycle lanes.
Coastal /Bay &Water Quality
Committee
PURPOSE:
The Committee advises and makes recommendations
to the City Council on water quality /water conservation
policies, projects and programs that will achieve the
Committee's mission and the City Council's priorities:
• Educate the watershed's population about the
value of Newport Bay and the ocean;
• Enforce and /or strengthen existing regulations on
actions that impair water quality or wildlife habitat;
• Advocate for policies, programs and projects that
improve the water quality of Newport Bay and the
ocean;
• Oppose policies, programs or projects that detract
from good water quality in the Newport Bay
watershed and the ocean; and
• Develop, fund, and monitor water quality initiatives,
including testing and structural projects, that meet
the Committee's mission.
COMMITTEE AUTHORIZATION:
Resolution 2003 -63
COMMITTEE MEMBERS:
Mayor Pro Tem Nancy Gardner (Chair), Council
Member Edward Selich (Vice Chair),
Mayor Michael Henn, Roberta Jorgensen, Jim Miller,
George Drayton, Randy Seton, Tom Houston, Janet
Rappaport, Dennis Baker
LENGTH OF TERM FOR MEMBERS:
The two Council Members and seven citizen members
serve for a term of four years for one term subject to
renewal by the City Council.
FREQUENCY OF MEETINGS:
Monthly, Second Thursday, Fire Conference Room
STAFF LIAISON:
John Kappeler, Water Quality Manager
STAFF SUPPORT:
Staff estimates approximately 30 hours a month are
allocated to this Committee.
QUARTERLY PROGRESS REPORT:
During the quarter, the Committee reviewed
various water quality projects and programs
including the Newport Bay Copper Reduction
Project, the Big Canyon Project, the Shark
Mobile, a proposed tiered water rates study
and an update on the newly proposed EPA
Recreational Water Quality Testing Criteria.
Future agenda items include the Banning
Ranch draft Environmental Impact Report, the
Coastal Dolphin Research Program, various
environmental educational programs and a
review of various water quality grant programs.
27
Environmental Quality
Affairs Committee
PURPOSE:
The mission of the Environmental Quality Affairs
Committee (EQAC) is to protect and enhance the
environmental quality of the City for the health and
enjoyment of residents and visitors. When directed
by the City Council EQAC:
A. reviews and submits comments on Notices
of Preparation (NOP) and /or the Notice
of Completion (NOC) with respect to any
Environmental Impact Report (EIR) prepared by
the City;
B. reviews and submits comments on behalf of the
FREQUENCY OF MEETINGS:
Monthly / As Needed
STAFF LIAISON:
James Campbell, Principal Planner
City (subject to City Council or City Manager
approval) on environmental documents prepared STAFF SUPPORT:
by other public agencies for projects that Staff allocates on average four hours per
have the potential to cause significant adverse meeting with one staff member.
environmental impacts within the City;
C. reviews and submits comments on any negative
declaration prepared by the City for any project;
D. advises the City Council on policies, programs
and projects that improves or detracts from the
environmental quality of the City; and
E. promotes education and awareness on positive
environmental practices.
COMMITTEE AUTHORIZATION:
Established by Resolution No. 87 -14 and modified
from time -to -time EQAC's role was most recently
modified by Resolution No. 2011 -26.
COMMITTEE MEMBERS:
Mayor Pro Tern Nancy Gardner, Council Member
Rush Hill, Kimberly Jameson, Merrit Van Sant, Laura
Meier, Ed Reno III, Nick Roussos, Joan Penfil, Bruce
Asper, Kevin Kelly, Barbara Thibault, Laura Curran,
Vincent Lepore, Kevin Nolen, Kathy Harrison, Sandra
Haskell, Timothy Steaks, Michael Alti, Debbie Stevens,
and Charles McKenna. Five vacancies presently
exist.
LENGTH OF TERM FOR MEMBERS:
The members of the Committee serve for a term of
four years on a staggered basis for a maximum of
two consecutive terms.
28
QUARTERLY PROGRESS REPORT:
Mayor Henn apointed Debbie Stevens as EQACs
Chair to fill the position due to the appointment
of Arlene Greer to the City Arts Commission.
The City Council tasked EQAC to review and
comment on the draft Environmental Impact
Report (DEIR) for the Newport Banning Ranch
project. Committee members were assigned
sections of the DEIR to review and comment on
during its September 19 meeting.
Newport Coast
Advisory Committee
PURPOSE:
Advise the City in the implementation of the
Newport Coast Annexation Agreement and any
other issue relating to Newport Coast, Newport
Ridge, or Crystal Cove.
COMMITTEE AUTHORIZATION:
Established by Resolution 2001 -81
COMMITTEE MEMBERS:
Three members appointed by the City, four
appointed by the Newport Coast Committee of
2000 (NCC2K). Current membership includes Council
Member Keith Curry, Mayor Pro Tern Nancy Gardner,
Jim McGee (Chair), Gerry Ross (Vice Chair), Jack
Butefish, Daniel Wampole
LENGTH OF TERM FOR MEMBERS:
The seven members of the Committee serve for a
term of three years.
FREQUENCY OF MEETINGS:
In recent years, called as needed.
STAFF LIAISON:
Dave Kiff, City Manager
STAFF SUPPORT:
Minimal given that the Committee has not met in
recent years.
QUARTERLY PROGRESS REPORT:
This committee cannot be disbanded without
violating the Newport Coast Annexation
Agreement, which calls for its creation
and maintenance. This committee met
frequently - monthly at least - in 2001, 2002,
and for a few years after the January 1, 2002
annexation of the Newport Coast community.
With the community center completed and
operating, fairly few issues arise that require
the Committee to meet. Committee members
remain relatively active in City issues, and
very active in Newport Coast issues (typically
via their Master HOAs). In the most recent
period, there have been communications
with a Committee member about the new
"wayfinding" signs in the Newport Coast
area and, as a result, some of them may be
removed.
29
Special Events
Advisory Committee
PURPOSE:
The Special Events Advisory Committee (SEAC)
was formed to assist the City Council in evaluating
requests for City support of community events.
The Committee assesses every application for
City support based upon each event's ability to
meet all or most of the established evaluation
criteria. The Council relies upon the committee's
recommendation when making event support
funding decisions.
COMMITTEE AUTHORIZATION:
Established by Resolution No. 2009 -22, adopted
on May 12, 2009. Membership and responsibilities
amended by Resolution No. 2011 -32 adopted on
April 12, 2011.
COMMITTEE MEMBERS:
Laura Davis (Chair), Judy Brower, Janis Dinwiddie,
Kirwan Rockefeller, Marshall Topping, Vicki Higgins,
Jeffery Cole
LENGTH OF TERM FOR MEMBERS:
The seven member Committee is ongoing until such
time as the need for the Committee no longer exists.
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Tara Finnigan, Public Information Manager
STAFF SUPPORT:
During the first quarter of fiscal year 2011-2012, Staff
provided approximately 21 hours of support to the
committee.
30
QUARTERLY PROGRESS REPORT:
At its June 28 meeting, the City Council
approved allocating a total of $214,480 for
community event grants in the fiscal year
2011 -2012 General Fund budget. Fifteen local
organizations were awarded grants ranging
from $800 to $90,000. City staff is preparing
agreements for each of the grant recipients.
Last spring, as the Special Events Advisory
Committee (SEAC) completed its 2011
application review process, it was suggested
that a small subcommittee meet to develop a
list of possible changes to incorporate before
the committee began its 2012 process. A
subcommittee of two committee members and
one staff member met in July and discussed
potential changes to the grant application, the
review process, and the schedule.
The suggested changes were presented
to the full committee at its September 26
meeting. Applicants and community members
also provided suggestions for improving
the application and review process and
the committee decided to form additional
subcommittees to further refine these two
components. The subcommittees will present
their ideas at the October and November
committee meetings.
The committee plans to have the revised
application available online by mid - December
and applications would then be due by mid -
February 2012.
The committee intends to meet monthly through
the end of the calendar year to finish the process
improvements.
Aviation Committee
PURPOSE
Generally, to assist the City in the implementation
of Council Policy A -17 (Newport Beach City Council
Airport Policy).
COMMITTEE AUTHORIZATION:
Established by Resolution #9597 (1979). Recently
amended by Resolution #2011 -31 (April 12, 2011).
COMMITTEE MEMBERS:
City Council (3): Leslie Daigle (Chair), Rush Hill (Vice
Chair), and Keith Curry.
City Manager Dave Kiff
City Attorney Aaron Hart
Council District representatives - Dan Gilliland, Henry
Arjad ( #1), Eleanor Todd, Gerald Scarboro ( #2),
Tom Anderson, Sue Hogan ( #3), Bonnie O'Neil, Ron
Darling ( #4), John Cunningham, Craig Page ( #5),
Shirley Conger, Lloyd "Bud" Rosner ( #b), Suzanne
Casey, Jim Dunlap ( #7).
President of Airport Working Group - Tony Khoury
Representative from Airfair /SPON - Melinda Seely
Resident of Newport Coast /Newport Ridge - Roger Ham
General Aviation Representative - not yet named
LENGTH OF TERM FOR MEMBERS:
Not defined by Resolution.
FREQUENCY OF MEETINGS:
Monthly, last Monday at Central Library Friends Room
STAFF LIAISONS:
Dave Kiff, City Manager and
Tom Edwards, Consultant
STAFF SUPPORT:
Tom Edwards' attendance at the meetings and
his monthly "All Things Aviation" summary is part
of his monthly retainer ($5K /mo). Staff estimates
approximately eight hours per month are allocated
to this Committee.
QUARTERLY PROGRESS REPORT:
The Aviation Committee continues to spend
time discussing the FAAs recent "NexGen"
departure patterns for JWA, the "STREL" and
"RAWLZ ". STREL attempts to mimic the traditional
departure patterns over Upper Newport Bay for
flights going east of Las Vegas (about 50% of all
flights leaving JWA) and where the planes have
cockpit equipment to follow the STREL. RAWLZ
will do the some for many other flights.
Committee members generally have been
focused on hearing from JWA officials about JWA's
passenger counts and the City's efforts to extend
the neighborhood - friendly protections at JWA,
including the commerical and general aviation
curfews and the passenger and average daily
departure caps. These efforts will take on new
emphasis in the 4th Quarter of 2011 as the County
invites the City, SPON, and AWG to the table to
discuss extending the settlement agreement and
curfew.
It generally is the Committee's position that the
City always view Aviation via the lens of Council
Policy A -17 (Newport Beach City Council Airport
Policy). The policy does not speak to departure
patterns that may impact one neighborhood
over another, but it does speak to the importance
(above all else) of the Settlement Agreement's
protections. It is staff's assertion that the near
universal focus of the Committee should be the
Settlement Agreement and its extension and
implementation.
31
Banning Ranch
Development Agreement
PURPOSE:
To negotiate the terms of a pre- annexation and
development agreement, which will describe
development rights of and public benefits to
be provided by the developer and outline the
terms for annexation of the property to the City of
Newport Beach.
COMMITTEE AUTHORIZATION:
Established by Resolution 2008 -29
COMMITTEE MEMBERS:
Council Member Steven Rosansky and
Council Member Edward Selich
LENGTH OF TERM FOR MEMBERS:
The Committee will sunset upon City Council
approval of the pre- annexation and development
agreement, or earlier if so decided by the City
Council.
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Patrick Alford, Planning Manager
STAFF SUPPORT:
Staff estimates approximately 20 hours are
allocated to this committee.
QUARTERLY PROGRESS REPORT:
During the quarter, the basic terms of the
development agreement were established.
32
General Plan /Local Coastal
Program Implementation
PURPOSE:
The Committee is charged with the tasks of
developing a work program for the
following items and overseeing their progress:
A. revision of Coastal Land Use Plan;
B. revision of Zoning Code;
C. completion of Local Coastal Program
Implementation Plan;
D. study of infrastructure needs associated with
development authorized in the General Plan,
and establishment of developer impact fees for
infrastructure;
E. revision of City Council policies;
F. revision of Building Code:
G. public participation on the previous items; and
H. any other means of implementing the General
Plan that may be assigned to the Committee by
the City Council.
COMMITTEE AUTHORIZATION:
Established by Resolution No. 2006 -106
COMMITTEE MEMBERS:
Council Member Edward Selich (Chair), Mayor
Pro Tern Nancy Gardner, Council Member Rush
Hill, and Planning Commissioner Michael Toerge.
There are two vacancies designated for Planning
Commissioners.
LENGTH OF TERM FOR MEMBERS:
Ongoing until such time as the need for the
Committee no longer exists.
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Gregg Ramirez, Senior Planner
STAFF SUPPORT:
None at this time.
QUARTERLY PROGRESS REPORT:
The Ad Hoc Committee has not met
since September of 2010. The last major
accomplishment was the Committee's
recommendation on the draft comprehensive
update of the Zoning Code. Ultimately
the comprehensive update of the Zoning
Ordinance was reviewed by the Planning
Commission and then adopted by the City
Council in October of 2010.
33
Group Residential Uses &
Code Enforcement
PURPOSE:
To serve as the City Council's liaison with
special counsel regarding threatened and
actual litigation challenging the validity of
the adopted ordinance dealing with group
uses; and to serve as the City Council's liaison
to City staff regarding the implementation of
the group residential use ordinance, including
but not limited to the convening of a slate
or slates of hearing officers, and staff's bi-
monthly Progress Reports to Council.
COMMITTEE AUTHORIZATION:
Established by Resolution No. 2007 -64 and
amended by Resolution No. 2008 -9.
COMMITTEE MEMBERS:
Mayor Michael Henn (Chair), Mayor Pro Tern
Nancy Gardner, and Council Member
Steven Rosansky
LENGTH OF TERM FOR MEMBERS:
Expired December 31, 2009; however,
committee members continued to advise
staff and general counsel.
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Aaron Harp, City Attorney
STAFF SUPPORT:
Staff estimates four hours per meeting are
allocated to this Committee.
34
QUARTERLY PROGRESS REPORT:
The Ad Hoc Committee meets infrequently and
has received periodic updates from staff and
special counsel regarding pending litigation
and implementation of the group residential use
ordinance.
July 4th West Newport Safety
Planning Committee
35
QUARTERLY PROGRESS REPORT:
The committee met on August 15 to review the events of the July 4
PURPOSE:
holiday and to begin to strategize for the 2012 holiday. The community
The July 4th West Newport Safety
response to the efforts and activities undertaken for this year's July 4th
Committee was formed to as-
holiday has been overwhelmingly positive. This was the second of a
sist the City of Newport Beach
multi -year effort to gradually turn the party -like atmosphere found on
in identifying measures to help
the Peninsula and West Newport on July 4 into a family - friendly holiday
contain, and eventually elimi-
that everyone can enjoy. This year's strategy incorporated more
nate, unruly behavior in West
stringent enforcement measures, more changes to the closure area
Newport on Independence Day.
to lessen the crowds that gather, and the inclusion of family oriented
The Committee's goal is to cre-
events.
ate a safe, family friendly holiday
environment that residents and
Enforcement Efforts
visitors can equally enjoy.
This was the first year of implementation of the Council's Loud & Unruly
Gatherings Ordinance 100-2011 which establishes fines and augments
the City's Disturbance Advisory Card System. During the Fourth of
COMMITTEE AUTHORIZATION:
July holiday weekend (Friday, July 1- Monday, July 4), the Newport
Established by Council Resolution No.
Beach Police Department (NBPD) tagged 15 homes for violating
2002 -58 on September 10, 2002.
the ordinance and 16 citations were issued. Overall, enforcement
numbers increased this year with a total of 119 arrests, an 11 percent
increase, and a total of 1,093 citations issued, a 26 percent increase;
COMMITTEE MEMBERS:
however, the department's calls for service decreased about five
Mayor Michael Henn (Chair),
percent. The issuance of Disturbance Advisory Cards was also lower
Council Member Steven
with only 26 issued this year and 76 issued last year. The Police Chief
Rosansky, Craig Batley, Mary
felt the crowds were better behaved this year and that the statistics
Bryant, Paul Watkins, Margie
indicate the committee and City are moving in the right direction.
Dorney, City Attorney or
Family Oriented Activities
designee, Police Department
Recreation &Senior Services staff members worked closely with
staff member.
the eight member citizens subcommittee and an event planning
consultant to plan the July 4 is for Families, West Newport Bike Parade &
LENGTH OF TERM FOR MEMBERS:
Community Festival. Staff from Public Works, Municipal Operations and
Ongoing until such time as the need
the Police Department worked to determine the parade route and
for the Committee no longer exists.
necessary traffic control. The subcommittee brought in 11 sponsorships
($3,100 cash and $1,500 in kind) to help the City cover the event costs.
Community participation in the festivities far exceeded projections and
FREQUENCY OF MEETINGS:
many positive comments were received.
As Needed
Street Closures
The committee set a goal of gradually minimizing the street closure
STAFF LIAISON:
area and time period until the closure is eventually eliminated. This
Tara Finnigan,
effort began in 2010 and continued this year. The closure area was
Public Information Manager
several blocks shorter and the streets were open by 7 p.m, on July 4.
Planning for 2012
At the committee's August 15 meeting, the group discussed the
STAFF SUPPORT:
following:
Staff provided approximately
• Whether and how far to shrink the street closure area in 2012
40 hours for committee support
considering July 4 in 2012 is on a Tuesday.
and an additional 100 hours
for the Family Friendly Events
• How to continue to improve the well- regarded Family
subcommittee support.
Friendly July 4 celebration and parade.
• The need to continue the Loud & Unruly Gatherings process.
35
Negotiate Conexant
Development Agreement
PURPOSE:
Work with City staff and designated
representatives of Conexant (or their successor) on
possible terms and conditions of the Development
Agreement; and to recommend to the City
Council action on potential terms and conditions
of the Development Agreement. The purpose of
the Committee is not directly tied to 2011 Council
priorities.
COMMITTEE AUTHORIZATION:
Established by Resolution No. 2010 -25 on 3 -25 -10
COMMITTEE MEMBERS:
Council Member Edward Selich, and Council
Member Steven Rosansky.
LENGTH OF TERM FOR MEMBERS:
The Committee expires at such time as
the Committee completes its negotiations
with Conexant (or their successor) and its
recommendations of potential course of
action are transmitted to the City Council for
consideration.
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Kimberly Brandt, Community Development Director
STAFF SUPPORT:
Staff estimates approximately 40 hours of staff time
will be devoted to support the committee with
negotiations (including attorney time) and costs
are reimbursed by the applicant.
36
QUARTERLY PROGRESS REPORT:
The Ad Hoc Committee has not begun
negotiations. Conexant has sold the property
to Uptown Newport LP, and the new applicant
has filed the necessary application to proceed
with the project. The applicant requested to
use a different environmental consultant be
used to prepare the environmental impact
report for the project. Staff solicited proposals
from several qualified firms and selected the
Planning Center. Staff and the applicant
met with the Planning Center on October 13,
2010, to kick -off the EIR process. It will take
approximately nine months to complete the
preparation of the draft EIR. Hearings with both
the Planning Commission and City Council
will follow. Negotiations will commence and
should be completed within the six months.
Negotiate International Bay Club's
Development Agreement
PURPOSE:
Work with City staff and designated representatives
of International Bay Club on possible terms and
conditions of the Development Agreement; and
to recommend to the City Council action on
potential terms and conditions of the Development
Agreement. The purpose of the Committee is not
directly tied to 2011 Council priorities.
COMMITTEE AUTHORIZATION:
Established by Resolution 2009 -28
COMMITTEE MEMBERS:
Council Member Edward Selich and Council
Member Steven Rosansky.
LENGTH OF TERM FOR MEMBERS:
The Committee expires at such time as it completes
negotiations with the International Bay Club and its
recommendations of potential course of action are
transmitted to the City Council for consideration.
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Kimberly Brandt, Community Development Director
STAFF SUPPORT:
Staff estimates that approximately 40 hours of staff
time will be devoted to support the committee with
negotiations (including attorney time) and costs are
reimbursed by the applicant.
QUARTERLY PROGRESS REPORT:
The Ad Hoc Committee completed its
negotiation of the terms and conditions of a
draft agreement. The Planning Commission
should conclude hearing the project in
November of 2011, with hearings before the
City Council scheduled thereafter.
37
Negotiate Newport Beach Country Club
Development Agreement
PURPOSE:
Work with City staff and designated
representatives of Newport Beach Country
Club on possible terms and conditions of the
Development Agreement; and to
recommend to the City Council action on
potential terms and conditions of the
Development Agreement. The purpose of the
Committee is not directly tied to
2011 Council priorities.
COMMITTEE AUTHORIZATION:
Established by Resolution 2007 -32
COMMITTEE MEMBERS:
Council Member Edward Selich and Council
Member Steven Rosansky
QUARTERLY PROGRESS REPORT:
The Ad Hoc Committee completed its
negotiation of the terms and conditions of a
LENGTH OF TERM FOR MEMBERS:
draft agreement. The Planning Commission
The Committee expires at such time as the
should conclude hearing the project in
Committee completes its negotiations
November of 2011, with hearings before the
with Newport Beach Country Club and its
City Council scheduled thereafter.
recommendations of potential course of
action are transmitted to the City Council for
consideration.
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Kimberly Brandt, Community Development
Director
STAFF SUPPORT:
Staff estimates that approximately 40 hours of
staff time will be devoted to
support the committee with negotiations
(including attorney time) and costs are
reimbursed by the applicant.
38
Neighborhood Revitalization
Committee
PURPOSE:
The Ad Hoc Committee is a direct outgrowth of
one of the five 2011 Annual Priorities identified
by the City Council in February of 2011. The
purpose of the Committee is to identify and
then prioritize those areas of the community
that should have an investment of time,
thought, and resources to bring the areas
up to "Newport Beach" standards. Following
City Council approval of the prioritization, the
Committee will identify desired outcomes,
develop a plan to achieve them, and
recommend budget appropriations to be
approved by the City Council. Additionally,
the Committee has identified and established
Citizens Advisory Panels (CAPS) to guide
and implement the revitalization strategy for
each specific area, encouraging public input
throughout the process.
COMMITTEE AUTHORIZATION:
Established by Resolution 2011 -26
COMMITTEE MEMBERS:
Mayor Michael Henn (Chair), Council Member
Edward Selich and Council Member Rush Hill
LENGTH OF TERM FOR MEMBERS:
Term ends December 31, 2012
FREQUENCY OF MEETINGS:
As Needed
STAFF LIAISON:
Kimberly Brandt, Community Development
Director
STAFF SUPPORT:
The City Manager has identified $500,000
from 2011-2012 Fiscal Year budget savings as
an initial estimate of costs. Depending upon
specific tasks, additional budgetary allocations
may be forthcoming. Staff allocates on
average five hours per meeting with three staff
members.
QUARTERLY PROGRESS REPORT:
The initial accomplishments of the Ad -Hoc
Committee were the identification and prioritization
of the revitalization areas (Council endorsed) and
establishment of individual CAPS for each revitalization
area. The Ad -Hoc Committee has met seven times
and has received periodic updates on the progress
of each effort. When each CAP concludes assigned
task, they will forward a recommendation to the
Ad -Hoc Committee who will in -turn provide a final
recommendation to the City Council for consideration
and action.
A recommendation from the Ad -Hoc Committee in
relation to the Lido Village revitalization area (Project
12) is anticipated to be forwarded to the City Council in
December of 2011.
Completion of the planning and recommendations for
the Balboa Village revitalization area (Project 10) are
anticipated in the Spring of 2012.
Completion of the planning and recommendations for
the Corona del Mar Entry revitalization area (Project
1 1) is anticipated by the end of 2011 and the Santa
Ana Heights revitalization area (Project 13) and West
Newport Beach revitalization area (Project 14) are not
anticipated to be completed until early 2012.
39
Tidelands Management
Committee
PURPOSE:
The goals of the committee are to:
1) Establish long term visions for the tidelands
including the Upper and Lower Bays, beaches
and other components;
2) Study and adopt a Tidelands Infrastructure
Master Plan;
3) Research, consider and recommend
appropriate governance structures;
4) Oversee ongoing execution of the Tidelands
Infrastructure Master Plan projects; and
5) Identify and establish a Citizens Advisory Panel
to assist the Committee, encouraging public
input throughout the process.
COMMITTEE AUTHORIZATION:
Established by Resolution 2011 -26
COMMITTEE MEMBERS:
Mayor Michael Henn, Mayor Pro Tem Nancy
Gardner and Council Member Edward Selich
LENGTH OF TERM FOR MEMBERS:
Ongoing until such time as the need for the
Committee no longer exists.
FREQUENCY OF MEETINGS:
Monthly on the third Wednesday
STAFF LIAISON:
Chris Miller, Harbor Resources Manager
STAFF SUPPORT:
Staff estimates approximately 30 hours per month
are allocated to this committee.
M
QUARTERLY PROGRESS REPORT:
The Committee heard presentations and
commented on:
• The City's oilfields;
• An overview of dredging projects including
Rhine Channel, Lower Bay, Newport Island
area, Linda Isle and Seminouk Slough;
• San Diego Creek sediment loading;
• Comprehensive Lower Bay dredging strategy;
• Tidelands Infrastructure Management Plan
Review,
• Review of the Harbor Commission Goals for
2011 -12; and
• Review of the current Lower Bay dredging
Army Corps project.
Reports
city of newport beach I city manager's office
www.newportbeachca.gov 1 949.644.3001
The City continues an ambitious and wideranging delivery of projects which represent the City
Council goals and have been developed to meet current community needs and to serve future
generations. The projects tracked in this report have been selected by the City Manager based on
those which generate the most interest and are not all inclusive of the many projects currently taking
place in the City.
Acquisition of Coast Highway
DEPARTMENT:
Public Works
PROJECT LEAD:
Dave Webb,
Deputy Public Works Director /City Engineer
PROJECT START DATE:
2008
TARGET COMPLETION DATE:
2012
DESCRIPTION:
The City desires to initiate a long range planning
process to create a Mariner's Mile Traffic, Pedestrian
and Parking Comprehensive Plan. The first step
is to acquire ownership of the necessary State of
California Department of Transportation (Caltrans)
right -of -way, or develop an agreement allowing
construction of desired improvements, for portions of
Coast Highway between Jamboree Road and the
Santa Ana River and Newport Boulevard between
Finley Street and the West Channel Bridge. The
acquisition process involves passing the appropriate
legislation, having the State review the facility for
ability to relinquish and its state of repair, providing a
report to the City on the facility, development of an
offer for the City to take the facility, and the City to
choose whether it would accept the offer.
Section 73 of the Streets and Highways Code allows
the California Transportation Commission to relinquish
State Highways through a prescribed process.
There is no defined schedule for this process and
it is expected to be rather lengthy to accomplish.
Caltrans has prepared a Project Study Report that
documents an assessment of the condition of the
two segments of State Highway to be considered for
relinquishment and has circulated the report within
its organization.
FUNDING SOURCE:
Sources for future improvements to be determined
TOTAL FUNDING REQUIRED FOR PROJECT:
To be determined
FUNDING ALLOCATED TO DATE:
None
AMOUNT SPENT TO DATE:
None other than staff time
STATUS TO DATE:
On September 16, 2010, staff met with Caltrans
to discuss its tentative findings of the current
condition assessment of the two highway
facilities. Caltrans informed staff that they
found the facilities to be in a good state of
repair and would offer $0 for its relinquishment.
Staff expressed concern with this position and
requested Caltrans review /correct various
existing items such as deteriorated traffic signals,
broken and /or deteriorated drainage structures,
failed pavement areas, failing slopes, etc., prior
to finalizing the report and determining the value
of relinquishment. Caltrans agreed to conduct
further review and update its report.
City staff continues to check in on the status
with the Caltrans Project Manager every few
weeks. Staff is aware that Caltrans staff recently
conducted additional inspection work, cleaned
out some drain facilities, and preformed slope
maintenance along this section of Coast
Highway. Caltrans recently informed City
staff that the Project Study Report is still being
reviewed by its Sacramento headquarters.
Public Works staff also started discussion with
Caltrans permitting staff to see if there is possibly
an agreement framework that we could enter
into that would allow improvements to State
Highways rather than acquire the right -of -way in
fee title. This is being pursued on a parallel path
with the acquisition path.
It is difficult to forecast a completion schedule
as we are working with an agency affected by
a budget crisis and this may be a lower priority
item. City staff still needs to review and confer
on the project report once it is received and
negotiate the best deal possible. This alone is
estimated to take six to nine months. At that
point, the City will need to determine if the deal
makes sense to move forward with accepting
one or both roadways.
45
PROJECT 2: City Harbor Fees
City Harbor Fees
DEPARTMENT:
Public Works
PROJECT LEAD:
Chris Miller, Harbor Resources Manager
PROJECT START DATE:
Summer 2010
TARGET COMPLETION DATE:
December 2011
DESCRIPTION:
This project consists of updating the Harbor
Resources' cost of service fees and the City's harbor
fees to reflect the fair market value for the use of the
Tidelands by associated user groups. Fees include
permits for moorings, Balboa Yacht Basin slip rates,
and commercial pier leases which contribute to
harbor projects such as dredging and additional
harbor amenities.
FUNDING SOURCE:
Tidelands and General Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
$125,000
FUNDING ALLOCATED TO DATE:
$125,000
AMOUNT SPENT TO DATE:
Approximately $19,026
STATUS TO DATE:
Revised fees for moorings and the Balboa Yacht
Basin (boat slips, garages and apartments) were
approved by City Council in the Fall of 2010 and
have now been implemented. Staff, with assistance
from Alan Kotin and Associates and Cummins
& White LLP, is reviewing fees for the harbor's
commercial piers and the preliminary findings on the
Lido Marina Village property.
The committee has been meeting regularly and a
draft sample lease to be used for all commercial
piers is under internal review.
47
�WT.
Civic Center Project
DEPARTMENT:
Public Works
PROJECT LEAD:
Steve Badum
PROJECT START DATE:
2008
TARGET COMPLETION DATE:
2012
DESCRIPTION:
The Civic Center Project includes a City Hall Office
Building, one of the city's largest parks (16 acre), a
450 -space parking structure, and an expansion of
the Newport Beach Central Library. It is located on
two parcels inland of the Newport Beach Central
Library and bordered by Avocado Avenue and
MacArthur Boulevard. The project also includes a
community room, new Council Chambers, a "One
Stop" Customer Service Center, dog park, passive
wetlands park, a civic green, and a small caf6 to
service library and city hall customers.
FUNDING SOURCE:
Bond Proceeds / General Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
$104,306,931 (estimated construction)
FUNDING ALLOCATED TO DATE:
$104,306,931 (hard construction costs only)
AMOUNT SPENT TO DATE:
$25,295,364
STATUS TO DATE:
The Civic Center project is on schedule and budget.
Soil export, grading, and construction of the parking
structure shoring wall have been completed. The
installation of the steel framing is underway on the
City Hall building. The library addition foundations
are complete and the framing will start shortly. The
parking structure construction is 9017o complete with
the installation of lighting, cable railing, and the
exterior architectural elements remaining.
The project is scheduled to be substantially
complete during the fall months of 2012 with grand
opening planned for December 2012.
r�
A .
Oq
49
DEPARTMENTS:
City Attorney's Office; City Manager's
Office; Community Development
PROJECT LEAD:
City Attorney and City Manager
PROJECT START DATE:
2007
TARGET COMPLETION DATE:
Ongoing
DESCRIPTION:
Group homes: Implement and defend
group home regulations to maintain
the residential character of the City's
residential neighborhoods while
providing equal access to housing
and accommodating the needs of the
disabled.
FUNDING SOURCE:
General Fund and Fund Balance
TOTAL FUNDING REQUIRED FOR PROJECT:
All costs have not been specifically identified
since a great deal of the costs are internal,
staff resources from the City Manager's Office,
City Attorney's Office, Planning, and Code
Enforcement.
FUNDING ALLOCATED TO DATE:
$3 million in outside counsel and litigation costs
to date with an additional $200,000 this fiscal
year.
AMOUNT SPENT TO DATE:
$3 million on outside counsel plus internal
staffing costs and cost of Hearing Officer in
administrative proceedings.
Group Homes
STATUS TO DATE:
The ordinance addressing the issue, Ordinance No.
2008 -05, has been adopted and enforced through all
necessary administrative proceedings. We are now
at the stage of defending the ordinance in court and
to the U.S. Department of Justice and Department
of Housing and Urban Development and in federal
court proceedings. Additionally, we are enforcing
the ordinance and the approvals given under it and
through approved Zoning Agreements with specific
operators. As to these issues:
(1) Federal Litigation:
The federal litigation against the City was successfully
resolved in the City's favor but is on appeal before
the 9th Circuit Court of Appeals. The appellants
recently filed their opening brief. The City anticipates
filing its answering brief in December with an
estimated hearing date in the Spring or Summer
of next year, with final resolution within three to six
months after the hearing.
(2) Challenge to Morningside Zoning Agreement:
MORN v. City of Newport Beach in the Orange
County Superior Court was filed as a challenge to
the adoption of the Zoning Agreement that was the
vehicle for settling the federal court litigation
involving the City and Morningside Recovery.
(3) Enforcement of Morningside Zoning Agreement:
On August 9, 2011, the Council adopted Ordinance
2011 -20, which terminates the Zoning Agreement
between the City and Morningside. Morningside has
filed a challenge to the City's termination of the
Zoning Agreement in the Orange County
Superior Court and the City has filed a cross -
complaint against Morningside seeking to abate the
violations of the City's Zoning Code at 4823 A River
Avenue, 4823 B River Avenue, 29 Ima Loa Court, 100
Via Antibes, 102 Via Antibes, 208 Vial Lido Sound and
533 Via Lido Soud.
(4) Step House Recovery.
A reasonable accommodation hearing was recently
conducted by the City at the request of Step House
Recovery. Following the hearing, the Hearing Officer
issued a decision that denied Step House Recovery's
request for a reasonable accommodation. As
a result of the Hearing Officer's decision, Step
House Recovery has entered into an Abatement
Agreement with the City.
(5) Enforcement Against Yellowstone:
With the Council's authorization, on October 11,
2011, the City fled a case in the Orange County
Superior Court seeking to abate four Yellowstone
residential care facilities in the city based upon
the facilities being in violation of the Newport
Beach Municipal Code.
(6) Enforcement Against Pacific Shores:
With the Council's authorization, on October
11, 2011, the City filed a case in the Orange
County Superior Court seeking to abate one of
the Pacific Shores residential care facilities in the
city based upon this particular facility being in
violation of the Newport Beach Municipal Code.
(7) Enforcement of Group Residential Use
Regulations:
Efforts are ongoing in the enforecement of the
City's Group Residential Use Regulation, including
the enforcement of the conditions of approval
of permitted uses and operating conditions
under zoning agreements entered into by the
City. These efforts involve substantial resources
from the Community Development Department
and its Code Enforcement Division, as well as
the City Attorney's Office. In this context, we are
addressing applications under the ordinance and
investigating allegations of violations of these
regulations and possible unpermitted operations
within the city.
(8) Group Homes Mini - Conference:
The City held a "mini- conference" on September
14, 2011. The conference was designed to
address the current status of the City's Group
Residential Use Regulations and provided an
update on the regulations that they have been
in force for over three years and have survived
legal challenges at the trial court level.
51
PROJECT 5: Implement Traffic Management Plan
MEL
e r
r r
Implement Traffic Management
DEPARTMENT:
Public Works
PROJECT LEAD:
Steve Bodum, Public Works Director
PROJECT START DATE:
January 2007
TARGET COMPLETION DATE:
Fall 2013
DESCRIPTION:
This project improves and modernizes 117
traffic signals throughout the City with new
controllers, fiber optic connections, a new Traffic
Management Center (TMC) including new
software, hardware and viewing monitors, Closed
Circuit Television (CCTV) cameras at selected
intersections to improve system reliability, traffic
flow, and to reduce congestion. The traffic signal
modernization program is a mulfiphased effort
that allows staff to monitor, adjust and optimize
signal timing and operations from the TMC at City
Hall.
To date, 81 traffic signals have been upgraded
and linked to a new high speed fiber optic
backbone, 22 CCTV cameras have been installed,
and the new TMC is operational. Staff also
combined the annual traffic signal rehabilitation
program with the signal modernization in an
effort to incorporate required maintenance of
existing signal equipment with the work for the
new modernization program. The noted funding
information only includes estimates for the traffic
modernization program.
FUNDING SOURCE:
Transportation and Circulation, Measure M Turnback,
Measure M Competitive
TOTAL FUNDING REQUIRED FOR PROJECT:
$6,500,000
FUNDING ALLOCATED TO DATE:
$5,000,000 (excludes Phases 6 and 8)
AMOUNT SPENT TO DATE:
$4,230,509
STATUS TO DATE:
The traffic modernization program was divided
into eight phases. Phases 1 through 4 and Phase
7 are now complete and operational. These
phases included work to intersections along Balboa
Peninsula, Superior Avenue, MacArthur Boulevard,
Jamboree Road, City owned portions of Coast
Highway, intersections in the airport area, and along
Irvine Avenue.
Phase 5 includes 13 intersections and adds four
more CCTV cameras in the Newport Center area
and along portions of San Joaquin Hills Road. This
project has been awarded for construction and is
anticipated to be complete in Spring 2012.
Phases 6 and 8 of the traffic signal modernization
program are planned to begin design by Summer
2012 and includes improvements to Newport Coast
Drive, San Miguel Drive, Bonita Canyon Drive, and
portions of San Joaquin Hills Road.
53
Lower Bay Dredging
DEPARTMENT:
Public Works
PROJECT LEAD:
Chris Miller, Harbor Resources Manager
PROJECT START DATE:
2011
TARGET COMPLETION DATE:
Spring 2012
DESCRIPTION:
The project initially included dredging approximately
1.2 million cubic yards in the main navigational
channels of the Lower Bay by the federal
government. Due to budget constraints, the Army
Corps of Engineers will initiate a smaller project to
dredge approximately 300,000 to 400,000 cubic
yards of material in the harbor's critical areas.
About two - thirds of the material is suitable for
ocean disposal at the off -shore site "LA -3", with the
remaining material to be disposed at the Port of
Long Beach.
FUNDING SOURCE:
Federal Funds, Tidelands
TOTAL FUNDING REQUIRED FOR PROJECT:
-$5.5 million
FUNDING ALLOCATED TO DATE:
$400,000 (O &M Tidelands); $100,000 (CIP); $2.2
million in federal funds is anticipated but not yet
allocated. City Council is considering contributing
an additional $2.5 -3.OM towards this dredging
effort. Additional areas could be dredged if more
funding were available.
AMOUNT SPENT TO DATE:
$400,000 (O &M Tidelands -for sediment testing)
STATUS TO DATE:
Staff is coordinating with the Army Corps of
Engineers in the design of a reduced scope
dredging project, given the federal government's
funding constraints. Securing a disposal site for
the unsuitable material has been of the utmost
importance. Staff will be recommending the
City Council authorize an agreement with the
Port of Long Beach for disposal of this material,
similar to what the City did for the Rhine Channel
material at the October 11, 2011 meeting. The
Corps advertised the project in September and
bids are due in October with a plan to award in
November. Dredging could begin near the first of
the year.
55
Proposed Site Plan
Marina Park
DEPARTMENT:
Public Works
PROJECT LEAD:
Dave Webb, Deputy Public Works Director/
City Engineer
PROJECT START DATE:
2006
TARGET COMPLETION DATE:
Spring 2014
DESCRIPTION:
The Marina Park site is located on the bay side of
Newport Peninsula between 15th and 18th Streets.
The 10.4 acre site is owned by the City and is
currently being used for several purposes including
a 57 space mobile home park, Las Arenas and
Veterans Memorial Parks, Balboa Community
Center and parking lots, 18th Street Sailing Base
and leased space for a Girl Scouts meeting facility.
The approved Marina Park Concept plan for the
property proposes a new marina which includes a
23 slip visiting vessel marina, a visitor side tie dock
and floating docks to support youth and adult
sailing programs and mooring support services; a
11,000 square foot Sailing Center building and a
10,500 square foot Community Center building; a
new park with amenities including tennis courts,
half court basketball courts, tot lot and playground,
exercise circuit, walking paths and beach area, a
new Girl Scout house and parking areas.
FUNDING SOURCE:
General Fund -Major Facilities
TOTAL FUNDING REQUIRED FOR PROJECT:
$30,000,000
FUNDING ALLOCATED TO DATE:
$10,725,725
AMOUNT SPENT TO DATE:
$1,584,905
STATUS TO DATE:
On November 13, 2007, the City Council
approved the Marina Park Concept Plan and
directed staff to prepare the Environmental
Impact Report (EIR) and design documents.
The project EIR was approved and certified by
the City Council on May 11, 2010.
Upon approval of the EIR, staff and the
consultant team prepared and submitted
applications to the State Regional Water
Quality Control Board for a 401 permit and US
Army Corps of Engineers' 404 permit. Project
approvals and permits from the California
Coastal Commission (CCC) and the State
Lands Commission (SLC) are also being sought.
The 401 permit was approved in May 2011. The
404 permit finished the public review process
and is expected to be approved -in- concept in
the coming months. However, the 404 permit
cannot be formally issued until the coastal
permit is approved.
The critical path item is the California Coastal
Commission Permit. Staff submitted the permit
application on October 7, 2010, and on
November 30, 2010 received an incomplete
letter. The application was re- submitted on
December 21, 2010, and the City received
its second incomplete application letter on
January 19, 2011. That letter informed the City
that the application cannot be accepted until
a Tidelands boundary issue is resolved with
State Lands Commission (SLC).
Staff met several times with CCC staff this
past quarter and requested they process
the project's application while the City
worked through the SLC boundary issue. On
September 1, 2011, the Tidelands Boundary
Agreement was approved by the State Lands
Commission.
57
Newport Banning Ranch
DEPARTMENTS:
Community Development, Public Works, Office of
the City Attorney, and City Manager's Office
PROJECT LEAD:
Patrick Alford, Planning Manager
PROJECT START DATE:
August 2008
TARGET COMPLETION DATE:
January 2013
DESCRIPTION:
Newport Banning Ranch is a 402.3 -acre planned
community proposed by Newport Banning
Ranch, LLC: a partnership formed by Aera Energy,
Cherokee Investment Partners, and Brooks
Street. The project would contain a maximum of
1,375 dwelling units, 75,000 square feet of retail
commercial, a 75 -room "boutique" hotel, parks,
and open space. The site is generally bound to
the north by Talbert Nature Preserve /Regional Park
(Costa Mesa); to the south by West Coast Highway
and the Newport Shores Community; to the east by
Newport Crest Community, West Newport Mesa,
and Westside Costa Mesa; and to the west by a U.S
Army Corps of Engineers wetlands restoration area
and the Santa Ana River. Approximately 40 acres
of the site are located within the incorporated
boundary of the City of Newport Beach; the
remainder of the site is within unincorporated
Orange County, but within the
City of Newport Beach's adopted Sphere of
Influence.
FUNDING SOURCE:
General Fund (off -set by application fees)
TOTAL FUNDING REQUIRED FOR PROJECT:
$4 million (estimated)
FUNDING ALLOCATED TO DATE:
$2,746,000
AMOUNT SPENT TO DATE:
$2,627,461
STATUS TO DATE:
The Draft Environmental Impact Report (DEIR)
was completed and distributed for public review
and comment. The 60 -day public comment and
review period began on September 9, 2011, and
ends on November 8, 2011.
The City Council directed the Environmental
Quality Citizen's Advisory Committee to review
and comment on the DEIR.
Following the public review and comment
period, responses to public comments and a
draft Final EIR will be prepared and submitted
along with the project for public hearings before
the Planning Commission and City Council.
Public hearings are anticipated to begin during
the first quarter of 2012. Should the City Council
approve the project, an application will be
submitted to the California Coastal Commission
(CCC) by Newport Banning Ranch. Processing
by the CCC staff is anticipated to take a
minimum of 15 months.
59
Reduce
Fire
Hazard
in
Buck
Gully
&
Morning Canyon
DEPARTMENT:
Fire
PROJECT LEAD:
Ron Gamble, NBFD Fire Marshal
PROJECT START DATE:
In 2007, the Department of Forestry and Fire Protection
followed State Law which requires the identification of areas
in the state that posed a very high fire severity risk.
TARGET COMPLETION DATE:
Once the maps are published and sent from the State, they
will be submitted to the City manager. Then Public notices
can be sent out, possible public hearings scheduled on
the subject and the CAL FIRE map can be adopted by the
City Council. This will become part of the annual hazard
reduction program.
DESCRIPTION:
State Law requires the Director of Forestry and Fire
Protection to identify areas in the state which are VHFHSZ
based on consistent criteria with computer models based
on topography, fuel loading, fire weather conditions and
historical data. People living within the Very High Fire Hazard
Severity Zone ( VHFHSZ) delineated on the State map are
subject to the provisions in the California Government Code
sections 51 175 through 51189.
In summary, California Legislature declared that wildfires are
extremely costly, not only to property owners and residents
but also to local agencies. Preventive measures are therefore
needed to ensure the preservation of the public peace,
health, or safety. The CAL Fire maps will allow the provisions
of this law to be enforced. It requires a person who
owns, leases, controls, operates, or maintains an
occupied dwelling or structure within a VHFHSZ to
create and maintain defensible space; disclose the
fact that property is located in a VHFHSZ; and use
ignition resistant materials and design to resist the
intrusion of flame or burning embers projected by a
vegetation fire (wildfire exposure). This will prove to
be the most prudent effort California has made to try
and mitigate the losses resulting from our repeating
cycle of interface fire disasters.
Currently, the Fire Department contracts with
Dudek, an environmental science company, to
perform inspections in the areas of Buck Gully and
Morning Canyon and creates a CAD drawing of the
vegetation on each property. These drawings are
used to identify any dead or dying vegetation or any
new vegetation that has begun to grow or has been
planted in these areas. These CAD drawings will
be used with the CAL Fire VHFHSZ maps to denote
certain vegetation that needs to be removed,
replaced or thinned to provide a defensible space
for the homes in the Very High Fire Hazard areas as
per the Government Code.
FUNDING SOURCE:
Unknown - current budget line item 2330 -8080
Hazard Reduction.
TOTAL FUNDING REQUIRED FOR PROJECT:
$4 million (estimated). Funding required for the
enforcement of this state law is unknown and
has the potential to increase to cover additional
requirements of the inspection of the VHFHSZ areas.
FUNDING ALLOCATED TO DATE:
Currently, $190,000 is budgeted for Fuel Modification
maintenance Account 2330 - 80804. The city -wide
weed abatement and hazard reduction programs
has $46,114.
AMOUNT SPENT TO DATE:
With the Hazard Reduction and Fuel Modification
programs running at the peak time of the year,
$118,306 has been expended.
STATUS TO DATE:
After years of waiting on these maps, the data has
finally been compiled and final corrections were
submitted to Cal Fire in July 2011. Cal Fire reports
that the final published VHFHSZ maps will be sent
to local agencies in the next few weeks. The maps
will be split into two separate documents with
instructions. One map will depict only the Very
High Fire Hazard Severity Zones as required by State
law, and a separate map will show only High and/
or Moderate zones for additional consideration
by each local agency. Newport Beach will work
with other fire agencies such as OCFA during the
adoption phase, including community outreach
efforts.
A copy of the finalized map is depicted below and
is available at the CAL Fire website, on the FHSZ
map tracker page.
All accepted changes are visually identified on the map via
diagonal stripes. The colors of the stripes also reflect the new
zone designation (very high, high, moderate, or non - zoned).
61
PROJECT 10: REVITALIZATION PRIORITY AREA:
Balboa Village
It � '�.�l�m�uiu" 1
j
% t
Revitalization Priority Area:
Balboa Village
DEPARTMENT:
Community Development
PROJECT LEAD:
Kimberly Brandt, Community Development
Director
RT DATE:
August 2011
TARGET COMPLETION DATE:
Within Fiscal Year 2011 -2012
DESCRIPTION:
Preparation of an Economic Vision and
Revitalization Strategy that addresses market
opportunities and constraints, infrastructure
opportunities, and previous economic
development efforts.
FUNDING SOURCE:
General Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
Funding to be determined and is
dependent upon the full scope of necessary
analysis. Staff has allocated 125 hours
within its preliminary work program costing
approximately $20,000.
FUNDING ALLOCATED TO DATE:
A consulting project manager /facilitator has been
retained at a maximum cost of $48,600.
AMOUNT SPENT TO DATE:
Approximately $10,000
STATUS TO DATE:
The Balboa Village Citizens Advisory Panel
(CAP) has conducted three public meetings
principally devoted to the identification of a
future vision and familiarizing themselves with
the priorwork prepared bythe Balboa Peninsula
Planning Advisory Committee (BPPAC). The
CAP has received an update on the future
plans forthe Newport Harbor Nautical Museum
(ExplorOcean) and Balboa Theater. Staff has
selected a consultant to prepare an assessment
of economic, market, and parking conditions
that will provide valuable facts to support a
strategy to implement new and previously
identified policies to revitalize the area.
The purpose of this project is directly tied to
the 2011 Council revitalization priority. The City
Council Ad Hoc Neighborhood Revitalization
Committee has prioritized the preparation of
a refreshed "Vision Plan" for Balboa Village
for Fiscal Year 2011 -2012. The study has
include a review of pertinent data, trends,
and economic development tools that will
infuse economic growth /stability. The Ad Hoc
Committee appointed the CAP to guide the
preparation of the design. CAP members are
Terri Pasqual, Ralph Rodheim, Craig Smith, Jim
Stratton, Mark Hoover. Mayor Michael Henn
is participating as a liaison to the Ad Hoc
Revitalization Committee and the City Council.
63
Revitalization Priority Area:
Corona del Mar Entry
DEPARTMENTS:
Public Works, Community Development, and
City Manager's Office
PROJECT LEAD:
Steve Badum, Public Works Director
PROJECT START DATE:
July 2011
TARGET COMPLETION DATE:
December 2011
DESCRIPTION:
Preliminary Design of a Capital Improvement
Project for beautification of the south side of
East Coast Highway from Avocado Avenue to
Dahlia Avenue.
FUNDING SOURCE:
General Fund, CdM Business Improvement
District
TOTAL FUNDING REQUIRED FOR PROJECT:
Funding to be determined as is dependent
upon the full scope of the anticipated
improvements.
FUNDING ALLOCATED TO DATE:
The City Council has allocated $76,000 to the
project at the request of the CDM BID Advisory
Board. Staff has allocated approximately
$32,000 for consulting project management
services. Staff anticipates the need to
schedule 60 hours of staff time at a cost of
approximately $10,000 to support the project.
AMOUNT SPENT TO DATE:
Approximately $11,000 for consulting project
management services.
STATUS TO DATE:
The Corona del Mar Entry Citizens Advisory Panel
has met twice and has discussed the opportunities
and constraints of existing infrastructure, circulation,
transportation, land use policy, design, and parking.
At the most recent meeting, two concept plans for
widening the sidewalk along the south side of Coast
Highway were reviewed. Each plan would move the
southbound lane drop further to the west, possibly west
of Avocado Avenue. It was decided that staff obtain
data from previous studies and look into conducting
a traffic analysis with respect to altering the lane
configurations.
Staff has identified Dennis Stone as the consulting
project manager to facilitate the CAP and its work
product; along with Assistant City Engineer Mike Sinacori
from the Public Works Department, Principal Planner
Jim Campbell from the Community Development
Department and staff from other departments will
provide assistance as necessary.
Meetings for the next quarter are scheduled to occur
on October 5, November 16 and December 21, 2011
were further discussions will take place on feasibility of
the design options.
The purpose of this project is directly tied to the 2011
Council revitalization priority. The City Council Ad Hoc
Revitalization Committee has prioritized the preparation
of the design of this project for Fiscal Year 2011-2012.
The Committee appointed the CAP to guide the
preparation of the design. CAP members are Sandy
Haskell, John Hyatt, Lisa Jordan, Bernie Svolstad, and
Ron Yea. Councilmember Rush Hill is participating as a
liaison to the Ad -Hoc Committee and City Council.
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Revitalization Priority Area:
Lido Village
DEPARTMENT:
Community Development
PROJECT LEAD:
Kimberly Brandt, Community
Development Director
PROJECT START DATE:
July 2011
TARGET COMPLETION DATE:
December 2011
DESCRIPTION:
The preparation of architectural and
landscape design guidelines for the
Lido Village area that is generally
bounded by Newport Boulevard,
Newport Bay, and 32nd Street.
FUNDING SOURCE:
General Fund (partially off -set by
private funds)
TOTAL FUNDING REQUIRED FOR
PROJECT:
$165,000 total
FUNDING ALLOCATED TO DATE:
From FY 2010-2011 budgeted funds,
$148,045 were encumbered for
consultant costs and this amount does
not include staff time. The consultant
cost is partially off -set by private funds
in the amount of $87,228, leaving
$60,817 as the cost to the City. Staff
has allocated 100 hours within its
preliminary work program costing
approximately $15,000.
AMOUNT SPENT TO DATE:
Approximately $110,000
STATUS TO DATE:
On June, 14, 2011, the City Council authorized the preparation
of architectural and landscape design guidelines. Tim Collins
was selected as the consulting project manager and Todd
Lamer of William Hezmalhalch Architects was selected as the
principal designer for the guideline preparation. The draft
design guidelines were reviewed by the Lido village Citizens
Advisory Panel (CAP) with input and feedback from stakeholders
and other property owners. The guidelines will be submitted
for Planning Commission review at it October 20 meeting.
Recommendations from both the CAP and Planning Commission
Will be considered by the Ad -Hoc Neighborhood Revitalization
Committee on November 10, 2011. The final draft guidelines
are scheduled to be considered by the full City Council on
December 13, 2011.
The purpose of this project is directly tied to the 2011 Council
revitalization priority. The City Council Ad Hoc Neighborhood
Revitalization Committee prioritized the area of Lido Village for
revitalization. The Ad Hoc Committee appointed the CAP to
guide the preparation of the design. CAP members are Craig
Batley, Roberta Buchanan, Bill Dunlap, Hugh Helm, Richard
Luehrs, and George Schroeder. Councilmember Rush Hill is
participating as a liaison to the Ad -Hoc Committee and City
Council. The overall process has been conducted with oversight
by the Ad -Hoc Committee.
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Revitalization Priority Area:
Santa Ana Heights
DEPARTMENTS:
Public Works, Community Development, and
City Manager's Office
PROJECT LEAD:
Steve Badum, Public Works Director
PROJECT START DATE:
July 2011
TARGET COMPLETION DATE:
Within Fiscal Year 2011 -2012
DESCRIPTION:
Preliminary design of a Capital Improvement
Project for landscape and irrigation
improvements along the north side of Bristol
Street abutting the 73 Freeway between
Campus Drive and Jamboree.
FUNDING SOURCE:
General Fund
TOTAL FUNDING REQUIRED FOR
PROJECT:
Funding to be determined and is dependent
upon the full scope of anticipated
improvements.
FUNDING ALLOCATED TO DATE:
Staff has allocated approximately $32,000 for
consulting project management services and
$28,000 for design consulting services. Staff
anticipates the need to schedule 60 hours of
staff time at a cost of approximately $10,000 to
support the project.
AMOUNT SPENT TO DATE:
Approximately $26,000 ($11,000 for consulting
project management services and $15,000 for
design consulting services).
STATUS TO DATE:
The Santa Ana Heights Citizen Advisory Panel (CAP)
met twice during the quarter to discuss potential
landscaping design guidelines for the unimproved
area between Bristol Street South and State Route
73. The CAP discussed the potential palette for the
project and determined that a holistic approach
should be taken to incorporate landscaping elements
similar to other projects in the Santa Ana Heights
area. The design team and staff were asked to
examine the prospects of adding an entry monument
sign near the intersection of the southbound 73 off
ramp and Campus Drive. Opportunities for public
art and aesthetically pleasing hardscape were also
requested.
Staff has identified Dennis Stone as the consulting
project manager to facilitate the CAP and its work
product; along with Senior Civil Engineer Iris Lee
from the Public Works Department as the lead staff
member and Planning Technician Benjamin Zdeba
from the Community Development Department to
provide support.
The next meeting is scheduled for November 2.
The purpose of the project is directly tied to the 2011
Council revitalization priority. The City Council Ad
Hoc Revitalization Committee has prioritized the
preparation of designs of this project for Fiscal Year
2011-2012. The Committee appointed the CAP to
guide the preparation of the design. CAP members
are Tim Stooks and Sarah Wilkinson. Mayor Michael
Henn is participating as a liaison to the Ad Hoc
Revitalization Committee and the City Council.
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Revitalization Priority Area:
West Newport Heights
DEPARTMENTS:
Public Works, Community Development, and City
Manager's Office
PROJECT LEAD:
Steve Badum, Public Works Director
PROJECT START DATE:
July 2011
TARGET COMPLETION DATE:
Within Fiscal Year 2011 -2012
DESCRIPTION:
Preliminary design of a Capital Improvement
Project for beautification of West Coast Highway
from the Santa Ana River to the Arches Bridge and
of Balboa Boulevard from West Coast Highway to
McFadden Square.
FUNDING SOURCE:
General Fund
TOTAL FUNDING REQUIRED FOR
PROJECT:
Funding to be determined and is dependent upon
the full scope of anticipated improvements.
FUNDING ALLOCATED TO DATE:
Staff has allocated approximately $32,000 for
consulting project management services and
$75,000 for design consulting services. Staff
anticipates the need to schedule 60 hours of staff
time at a cost of approximately $10,000 to support
the project.
AMOUNT SPENT TO DATE:
Approximately $56,000 ($11,000 for consulting
project management services and $45,000 for
design consulting services).
STATUS TO DATE:
The first meeting of the West Newport Heights
Citizens Advisory Panel was held on August 24,
2011 to review and discuss the boundaries within
the CAP's purview. A general area was further
discussed and several factors were identified as
keystones to the project; including alteration of
existing medians, incorporation of sustainable
elements, and the addition of lush plantings to
soften the look and improve the aesthetic of
the area. Additionally, there is a hope that the
landscape improvements will slow traffic and
improve safety along Balboa Boulevard.
The second meeting was held on September
28, 2011 to review a concept layout of typical
sections along each of the studied corridors. The
CAP determined that landscaping with varying
heights (groundcover, shrubs and canopy trees),
while minimizing hardscape, was the appropriate
approach to enhance the area.
Staff has identified Dennis Stone as the consulting
project manager to facilitate the CAP and its
work product; along with Senior Civil Engineer
Iris Lee from the Public Works Department as the
lead staff member to provide support.
Meetings for the next quarter are scheduled for
November 9 and December 14 at City Hall in
the Fire Conference Room and will begin at 4:00
p.m.
The purpose of the project is directly tied to
the 2011 Council revitalization priority. The City
Council Ad Hoc Revitalization Committee has
prioritized the preparation of the design of this
project for Fiscal Year 2011-2012. The Committee
appointed the CAP to guide the preparation
of the design. CAP members are Cindy Koller,
Gina Lesley, Jeffrey Morris, Tony Petros and
Paul Watkins. Councilmember Edward Selich
is participating as a liaison to the Ad Hoc
Revitalization Committee and the City Council.
71
Rhine Channel Contaminated
Sediment Cleanup
DEPARTMENT:
Public Works
PROJECT LEAD:
Chris Miller, Harbor Resources Manager
PROJECT START DATE:
August 2011
TARGET COMPLETION DATE:
December 2011
DESCRIPTION:
The project removes contaminated
sediments to restore and enhance state -
designated impaired beneficial uses of
the Rhine Channel, dispose of material in
an environmentally responsible and cost -
effective manner, and improve navigation.
Contaminated sediments will be removed
from the Rhine Channel in Lower Newport Bay
and from nearby areas found unsuitable for
unconfined ocean disposal under Regional
General Permit 54 issued by the U.S. Army
Corps of Engineers.
FUNDING SOURCE:
Tidelands and Private Contributions
TOTAL FUNDING REQUIRED FOR PROJECT:
Approximately $4.6 million
FUNDING ALLOCATED TO DATE:
$4.673 million (includes contingencies and
private contributions)
AMOUNT SPENT TO DATE:
$1,648,371
STATUS TO DATE:
On April 12, 2011, Anchor QEA was awarded
a contract for construction management
which also includes pre- construction submittals,
agency coordination, and sediment and water
quality sampling. A construction contract
was awarded to Dutra Dredging Company by
the City Council on May 10, 2011. All permits
have been secured and an agreement was
executed with the Port of Long Beach for
sediment disposal.
The project began in August 2011, and most
of the phases are now complete with the
exception of the American Legion dredging.
Dutra is about 45 days ahead of schedule and
is tracking to be on budget.
73
Sunset Ridge Park
DEPARTMENT:
Public Works
PROJECT LEAD:
Michael Sinacori, Assistant City Engineer
PROJECT START DATE:
August 2007
TARGET COMPLETION DATE:
Winter 2013
DESCRIPTION:
The proposed 13.7 acre Sunset Ridge Park
is situated on the northern corner of the
West Coast Highway and Superior Avenue
in West Newport Beach. Sunset Ridge Park is
planned to be an active park per the city's
General Plan with amenities including Pony
League baseball field, soccer fields, parking
area, festroom, butterfly garden, shaded
viewpoint, walkways, walls, signs, and
fencing.
FUNDING SOURCE:
General Fund and Park -in -lieu
TOTAL FUNDING REQUIRED FOR PROJECT:
$12,000,000-
FUNDING ALLOCATED TO DATE:
$11,205,000-
*Not including cost of land purchased from Caltrans for
$5,200,000.
AMOUNT SPENT TO DATE:
$1,623,672
STATUS TO DATE:
Staff is currently working to obtain all necessary
regulatory permits including a Coastal Development
Permit from the California Coast Commission (CCC). The
park project continues to advance, although not as fast
as originally anticipated due to unforeseen delays. Two
recent actions have removed some obstacles allowing
the park plans to continue toward construction.
On April 14, 2011, the City received a favorable
decision from the CCC on how to remedy the non -
permitted vegetation removals by a contractor which
occurred prior to the City acquiring ownership of the
park property. The second action occurred on May 5,
2011, when a lawsuit fled in 2010 by the Banning Ranch
Conservancy claimed the project's Environmental
Impact Report was inadequate in several areas was
ruled in the City's favor.
Staff has been working closely with CCC staff to address
any permit comments and concerns and press to
obtain the project's required permit. The first hearing
is set for November 2 and we have been informed the
Coastal Commission staff is recommending denial of
the project. We are hopeful the CCC overrules the
staff recommendation and approves the project. If
approved, plans will be finalized and project bids will be
solicited in Spring 2012. Construction of the park and
entry road from West Coast Highway could begin in late
Summer of 2012 with an estimated project completion
in Winter 2013. This timeline depends on the conditions
placed upon the project by the CCC.
75
PROJECT 1 7: Transportation Fair Share FeeY,, '
Transportation Fair Share Fee
DEPARTMENTS:
Public Works, Community Development
PROJECT LEAD:
Steve Badum, Public Works Director
Antony Brine, City Traffic Engineer
PROJECT START DATE:
February 2007
TARGET COMPLETION DATE:
Late 2011
DESCRIPTION:
In 1984, City Council established the Fair Share Traffic
Contribution Ordinance to ensure development
contributes its fair share towards improvements
included in the City's Master Plan of Arterial
Highways and General Plan Traffic Circulation
Element.
The ordinance established a fair and equitable
method to distribute costs of the circulation system
improvements necessary to accommodate the
traffic volumes generated by development. From
time to time, the City Council has updated this
ordinance as costs have risen and whenever the
General Plan has been updated.
The City recently updated the General Plan and the
Implementation Committee has been working on an
update of the fair share fee.
FUNDING SOURCE:
General Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
$100,000
FUNDING ALLOCATED TO DATE:
$65,200
AMOUNT SPENT TO DATE:
$65,200
STATUS TO DATE:
The completion of updating the Fair
Share Traffic fee has stalled with various
iterations proposed by the General Plan/
LCP Implementation Committee, project
consultants and interested parties such as
the Building Industry Association of Orange
County. The most recent version was reviewed
by the GP /LCP committee and the final
report, prepared by a consultant, is currently
being reviewed by staff. Staff will prepare an
updated schedule after discussions with the
City Manager.
77
West Newport Beach
Facility Planning
DEPARTMENTS:
Public Works, City Manager's Office
and Administrative Services
PROJECT LEAD:
Steve Badum, Public Works Director
Dave Kiff, City Manager
Tracy McCraner, Finance Director
PROJECT START DATE:
April 2011
TARGET COMPLETION DATE:
On -going
DESCRIPTION:
Most of the City's public buildings and
facilities on the west side of the city are
reaching the end of their service life and
are in need of major refurbishment or
replacement. In 2006, the City developed a
comprehensive city -wide Facilities Financing
Plan as a tool to identify, forecast and fund
the refurbishment and /or replacement of
numerous City owned facilities including
police and fire stations, libraries, community
and senior centers, services yards and parks.
With the upcoming relocation of City Hall to
the new Civic Center Complex, discussions
have and continue to take place as to how
best to reconstruct the remaining facilities
to meet current and future community
needs. The West Newport Beach Facility
Planning process will include building upon
the current efforts to redevelop the existing
City Hall site and develop conceptual plans
and alternatives to provide: consolidated
maintenance and operations facilities;
replacement and potentially relocated
community center facilities and fire stations;
replacement of the existing Lifeguard
Headquarters building with smaller, more
efficient facilities located at Newport and
Balboa Piers; as well as continuing discussions
regarding the future of various other City
facilities, particularly those located on the
western side of the Newport Bay.
FUNDING SOURCE:
General Fund
TOTAL FUNDING REQUIRED FOR PROJECT:
To be determined
FUNDING ALLOCATED TO DATE:
None - Budgeted for FY 2011-2012
AMOUNT SPENT TO DATE:
$87,400
STATUS TO DATE:
Staff has developed conceptual plans to reuse the
City's Corporation Yard (located at 592 Superior
Avenue) upon consolidation with the City's Utility Yard
(located at 949 W. 16th Street). A needs assessment
is currently underway for the consolidation of the two
facilities. The concept plan includes the relocation of
the City's Police Department and the development of
a consolidated West Newport Community Center. Staff
is also exploring potential alternative locations for the
replacement of Fire Station No. 2 (located adjacent
to City Hall) to allow for a more efficient reuse of the
current City Hall site.
79
Widen Jamboree Road
in the Airport Area
Public Works
PRO_
Dave Webb, Deputy Public Works Director /
City Engineer
PROJECT START DATE:
January 2005
TARGET COMPLETION DATE:
Summer 2012
DESCRIPTION:
This two -phase project involves widening the
Jamboree Road bridge over the SR73 Freeway
by 22 feet to the west (Phase 1); and then
widening Jamboree Road at the intersection
of MacArthur Boulevard between Bristol Street
North and Fairchild Road (Phase 2) in an effort
to reduce projected traffic congestion and
delay. The bridge widening project (Phase 1)
will create one additional northbound and
southbound thru lane on Jamboree Road
between MacArthur Boulevard and Bristol
Street South. This project required developing
a design and obtaining approval and a permit
from Caltrons for this State -owned bridge.
Additionally, the project required negotiations
and purchase of three pieces of private
property as well as several OCTA grant funding
applications and successful funding award.
The Jamboree Road Improvements through
the MacArthur Boulevard intersection (Phase
2) will provide one additional northbound lane
through the intersection as well as an additional
left turn lane from southbound Jamboree Road
onto eastbound MacArthur Boulevard. This
project also involves negotiations and voluntary
purchase of three pieces of private property
within the City of Irvine, as well as several OCTA
grant funding applications and successful
funding award.
FUNDING SOURCE:
Transportation and Circulation, IBC Settlement,
Measure M Turnback, and Measure M
Competitive
TOTAL FUNDING REQUIRED FOR PROJECT:
$9.2 million
FUNDING ALLOCATED TO DATE:
$10,228,884
AMOUNT SPENT TO DATE:
$3,966,200
STATUS TO DATE:
The Jamboree Road Bridge Widening Project
(Phase 1) was awarded for construction by City
Council on March 8, 2011. Construction began
in May and is approximately 35% complete with
an estimated completion in Summer 2012.
The Jamboree Road Improvements project
(Phase 2) is currently under design and staff
is concurrently negotiating for the voluntary
purchase of three pieces of private property on
the northeast corner of the intersection within
the City of Irvine.
To avoid conflict with Phase 1, staff's objective
is to complete the property acquisition and
design by the Fall of 2011 and start construction
in Spring of 2012. Construction is expected to
last about six months.
81