You Must Remember This: A little history lesson on water

By NANCY GARDNER

When it comes to water, Newport has been – I was going to say quite progressive, but given the conservative nature of our community that might not be viewed as a compliment. A quick check of Roget, and I will say that in water issues, Newport has been forward looking.

The topic of water often brings up Los Angeles and images from the movie Chinatown, and certainly L.A. threw a lot of elbows in gaining control of that area’s main water supply. Once it had mastery it was the 500-pound gorilla. If surrounding communities wanted water the only way they could get it was by annexing themselves to L.A., a significant factor in the way the city grew.

Newport has been far more genteel in its pursuit of water security. For many years the city well met residents’ needs, but the well fell victim to saltwater intrusion and the alternative, imported water, was expensive, so in 1993, the council (Hedges, Sansone, Watt, Turner, Hart, Cox, DeBay) approved the Groundwater Development Program to find a new local source. Attention immediately turned to Fountain Valley which, as its name suggests, sits on a lot of water. Fountain Valley was leery at first. They didn’t want Newport doing to them what Los Angeles did to the Owens Valley, but eventually an agreement was reached. Four wells were drilled, Fountain Valley didn’t turn into a desert, and Newport could import less water, thus lowering water bills.

That wasn’t the only effort at water security, however. In 1999, the council (Adams, Glover, Ridgeway, Noyes, O’Neil, Debay, Thomson) proposed that Newport become part of the Groundwater Replenishment System. As a reminder, this is a program between the Orange County Sanitation District and Orange County Water District which takes wastewater and treats it to drinking standards. It seems like a no-brainer now, but at the time it was hardly a slam dunk. The popular name was Toilet to Tap, and it was much easier to develop a snappy negative sound bite (“Do you want to drink someone’s pee?”) than to get people to read about reverse osmosis, microfiltration and the like, but the council persisted and eventually prevailed. Another layer of water security was procured for the city, and since people must urinate, etc., this was one that wouldn’t dry up.

When it came to water quality in the coastal waters, the city was pretty blasé for a long period, but so was every other coastal entity. Nobody understood just what an impact all this population growth would have on the ocean, and even when reports began to appear, the city wasn’t that concerned – until someone made the connection, “It’s the economy, stupid.” It was one thing if some surfers were coming down with things. It would be completely different if the outside world began to view the water in the harbor and the beaches as unsafe. That could affect PROPERTY VALUES! At that point, Newport shed any former indifference and became a leader in handling urban runoff and other water quality issues.

Water will continue to be an issue, but hopefully current leaders will take a lesson from past councils and continue to ensure that the city remains progressi–oops. I mean forward thinking when it comes to water, both in terms of supply and quality.

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Nancy Gardner, former Mayor of Newport Beach, long-time resident and daughter of Judge Robert Gardner, and past Citizen of the Year, is a regular contributor to Stu News Newport.

Letter to Newport Beach City Mayor and City Council

Subject: Encouraging Comprehensive Resident and Business Communication on Emergency Preparedness

Dear Mayor Stapleton and Members of the Newport Beach City Council,

Good Neighbor Newport (GNN) commends the City of Newport Beach for its proactive approach to emergency preparedness.  We encourage the Council to take additional steps and ensure all residents and businesses are informed of and prepared for potential fire threats and other natural disasters.

At the recent January 14th Council meeting, the presentations by the Fire Department and Public Works Department highlighted the extensive measures the City has taken to prepare for disasters. Newport Beach’s Fire Department has been particularly commendable in providing detailed guidance to homeowners on topics ranging from evacuation routes to strategies for enhancing the fire resilience of our homes. These efforts have undoubtedly enhanced the safety of our community. However, to achieve optimal success, it is crucial to extend this vital information to every resident and business within Newport Beach.

While digital platforms like social media and the City’s website are valuable communication tools, they do not reach everyone. Many residents, including renters, employees of local businesses, and those not actively engaged online, may remain unaware of the critical resources and guidelines available. To address this gap, GNN urges the Council to implement a direct mail campaign targeting all Newport Beach residences and businesses.

GNN suggests that this mailing be a standalone direct mail campaign (rather than bundled with utility bills) to ensure every household and business receives the information. The content need not be extensive, but should prominently direct recipients to the City’s website and resources, including:

• Emergency notifications in case of natural disasters

• Evacuation routes and maps

• Fire and earthquake preparedness guidelines

• Contact information for relevant City  departments

Furthermore, the City should consider coordinating with apartment complexes and multi-unit housing managers to ensure tenants receive this essential information. Engaging with local businesses will also help ensure employees working in Newport Beach are prepared in case of an emergency.

While direct mail incurs costs, this investment is a prudent and essential step toward protecting the well-being of our community. The advantages of an informed and prepared population far surpass the expenses, particularly in the face of disasters that could have devastating consequences.

Thank you for your ongoing dedication to the safety and resilience of Newport Beach. We trust the Council will consider this proposal and take action to expand outreach efforts for the benefit of all residents and businesses.

On behalf of Good Neighbor Newport (GNN),

Nancy Gardner

About Good Neighbor Newport: Good Neighbor Newport is a volunteer group of residents who are involved in and passionate about the City of Newport Beach. Members include former mayors; former and current members of city boards, commissions, and committees; leaders of local environmental and other non-profit groups; and three citizens of the year.  It is a diverse group in terms of age, expertise, and politics. This diversity is fundamental to its mission: to preserve and protect the quality of life of Newport Beach. You can submit comments to GNN at: https://www.goodneighbornewport.org. 

Food For Thought

The Truth About Municipal Debt

We all agree that Newport Beach needs a new police headquarters. Council Members Noah Blom, Erik Weigand, and others are making the case that putting the police station and jail in Civic Center Park is necessary to avoid issuing debt, but is that approach really in the best interests of residents and taxpayers?

To avoid the use of debt, there are two basic options:

THE CITY PAYS CASH: The city could pay cash from its robust financial reserves. However, this would leave the city more vulnerable during a recession, and it would literally cost the city money to spend its cash rather than borrow. As of this writing, a Federal Home Loan Bank security with a five-year maturity would yield 5.0%. The 30-year tax-exempt borrowing rate for AAA issuers such as the city of Newport Beach is currently 4.73%. Do the math, and it’s not in the city’s interest to pay cash.

SELL CITY PROPERTY: The approach suggested by Blom and Weigand is to sell city real estate to fund construction. That is why the current station site at Santa Barbara and the Dove St. site (purchased by a previous council as the site for police headquarters) are not under serious consideration. They are the properties designated for sale. However, both of these properties are appreciating assets. Property in and around Newport Center is among the most valuable in the city. It is likely that these parcels will be worth hundreds of millions more in the decades ahead. Beyond the loss of future property value appreciation, the city would miss out on long-term ground lease opportunities that can generate non-tax revenues to fund city services. The Lido House Hotel on the site of the old city hall is the most recent example. The Balboa Bay Resort has generated lease revenues for the city for decades. In addition, state law requires that if the property at Santa Barbara is declared surplus, it must be sold for housing, and it is entitled for a 300-foot-tall tower. Is that what residents want on this site? Moreover, given the high costs the city would incur to prepare the park site to meet the requirements of a police headquarters, it is very unlikely that proceeds from the sale of the Santa Barbara and Dove St. sites would cover construction costs.

WHEN TO USE DEBT: Debt should be used judiciously. It is only appropriate for long-term, essential assets that will serve for multiple generations. The new police headquarters is a prime example of such an asset. It will be in use for more than fifty years. Blom has frequently noted that the debt issued in 2010 for the civic center project amounts to $21,000 per day. That sounds like a lot until you realize the city spends $1,459,557.54 per day! It’s important to remember that every resident with running water, a flushable toilet, a home that does not flood in the rain, who flies from the airport or drives on the toll road or 405, who sends their kids to public school or a state university, or who goes for a sail on the bay, can thank past public officials who sold bonds to provide those services.

THE BOTTOM LINE: The real reason the city council does not want to use debt is that any debt over $50 million would require a vote of the people, and they know voters would never approve a bond issue to put the police station/jail in Civic Center Park—a location that presents too many financial, environmental, and safety risks. Stripping assets by selling the Santa Barbara location is a bad financial choice. The city council should focus on finding lower-cost sites and identifying financial strategies that protect Newport Beach residents and taxpayers.