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Newport votes to pay off pension liability faster

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The Newport Beach council voted Tuesday to pay off the city’s unfunded pension liability 11 years faster than it would have under its current 30-year plan.

The city’s finance committee, made up of councilmen Keith Curry, Mike Henn and Tony Petros, had discussed eliminating the projected $257-million liability to the California Public Employees Retirement System in 19 years, 15 years or 10 years.

The council unanimously approved the 19-year plan, which will cost more upfront as payments are excelerated but save money in the long run.

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“This is another very important step to keep these costs low,” Curry said. A staff report expects the city to save $129 million in interest over 30 years under the new payment plan.

Henn said the plan will also leave enough funds for capital improvement projects.

The unfunded pension liability is the difference between the amount the city owes in retirement benefits and the money it has set aside to fund them. The change will allow the city to get caught up after 19 years and in theory pay the pension costs in a more timely fashion.

The plan calls for the city to apply about $23 million to the debt during the next five years, according to the staff report.

The council also voted to amend the 2013-14 budget to allow the city to start the new funding plan immediately. The $6.6 million for the first year would come from the city’s projected $10.2 million surplus for this fiscal year, Henn said.

City leaders have taken steps to mitigate rising pensions costs over the past several years including establishing lower benefit formulas for new hires, having employees pay more of the pension costs and reducing staff by nearly 100 employees, the staff report states.

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Balboa Village Parking

The Newport Beach City Council approved permit parking for part of the commercial area of Balboa Village, but opted not to require the same for residential areas.

The council voted 6 to 1 to leave residential areas out of the permit requirement after several residents complained that it would be an inconvenience. Councilman Mike Henn dissented.

The California Coastal Commission must review the plan before it can be implemented.

The parking plan was designed to support years-long revitalization efforts in Balboa Village while maintaining existing parking for residents and guests, according to a staff report.

“Parking was a hindrance to the redevelopment of the village,” said Councilman Tony Petros. “We will remove that impediment to the commercial side.”

But Petros warned that more shoppers could make parking problems worse for residents, who would be left unprotected by a permit program.

The parking management plan for the commercial area — between Adams Street and A Street — would maintain existing off-street parking facilities but not mandate that businesses use them. It would also allow the shared use of parking facilities between businesses.

The council also voted to lower the cost of metered parking between October and April by 50 cents for the first hour, and to increase it during the peak summer season by 50 cents for the first two hours and $1 for each additional hour.

City leaders believe the two-tiered fee schedule will promote parking turnover near commercial business and increase use in the non-peak season.

Staff also said the fee increase may encourage the use of off-street public parking lots.

The council will review the parking plan annually to make adjustments.

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Bridge Replacement

The council unanimously approved the design of a new Park Avenue Bridge, which spans the Grand Canal and connects Balboa Island with Little Balboa Island.

The current bridge, which was built in 1930, was inspected by Caltrans and found to be “functionally obsolete” because of its age, according to a staff report.

The project is expected to cost about $4.4 million and will be funded by a federal Highway Bridge Program grant.

Construction is expected to begin in the fall or winter of 2015 and take 12 to 15 months to complete. A temporary bridge will be placed across the Grand Canal at Balboa Avenue during construction.

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A-frame signs

Balboa Village businesses will be able to use A-frame signs to attract customers for a one-year trial beginning Jan. 1.

The Newport Beach City Council unanimously approved a temporary amendment to its sign ordinance Tuesday night to allow Balboa Village businesses to use the street-level mini-billboards to advertise daily specials.

The A-frames must be within 10 feet of the primary entrance of a business and at least 3 feet from other portable signs, and they cannot block doorways, according to a city staff report.

Council members voted in October to lift a citywide ban on the signs for commercial areas of Corona del Mar.

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Employee raises

Also Tuesday, the council unanimously approved raises for three top city employees.

City Manager Dave Kiff received a 6.15% raise, bringing his total compensation to $246,000 annually. City Attorney Aaron Harp received a 4.13% increase, bringing his salary to $232,000 annually. City Clerk Leilani Brown also received a 3.65% increasing, raising her salary to $142,000 annually.

Council members said the raises follow positive annual reviews.

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