City hall plan may face vote

FOR THE RECORD

A story on Page A1 of Friday’s Daily Pilot, “City hall plan may

face vote,” should have said a ballot initiative proposed by

Newporters for Responsible Government would require a simple majority

of Newport Beach voters to approve borrowing for a public project,

rather than two-thirds of voters.

The roughly $41.5-million plan for a new city hall in Newport

Beach could be put to a public vote if some residents succeed in

getting an initiative on the ballot.

And the voting wouldn’t end with the city hall. The proposed

ballot measure would require approval from two-thirds of city voters

for any borrowing for a public project. The city charter now

specifies a public vote only when the city issues bonds to finance a

project.

A citizens’ group called Newporters for Responsible Government

filed a notice with the city clerk Thursday that it intends to gather

signatures to get the initiative on the ballot. If enough signatures

are collected, the measure could be placed on the November 2006

ballot or on a ballot in a special election.

John Buttolph, the group’s spokesman, said people are concerned

about the location and scope of the project as well as the proposal

to pay for it with certificates of participation. The certificates

are similar to bonds but are repaid from the city’s general fund and

don’t cause residents’ taxes to increase.

Using the certificates allows the city to avoid a public vote on a

costly project that is still paid for by taxpayers and puts the city

in debt, Buttolph said.

“This is a loophole and it needs to be closed,” he said.

The City Council gave tentative approval in May to a project that

includes a new city hall, fire station and parking garage on the site

of the existing City Hall. More detailed cost estimates will be

discussed at upcoming council meetings, with a final vote on the

project scheduled in October.

Newport Beach City Manager Homer Bludau said although certificates

of participation aren’t covered by the city charter, using them

doesn’t violate the charter’s intent, which is to get public approval

for projects that will increase residents’ taxes.

“Right now the City Council spends $190 million a year without a

public vote,” Bludau said, referring to the city budget. “So if a $50

million city hall and parking garage and fire station project were

done, it would mean about a $3-million-a-year cost to the city, which

pales in comparison to $190 million.”

Many cities, counties and the state all pay for projects with

certificates of participation, Bludau said.

Newport Beach Mayor John Heffernan, who in May voted against the

city hall project, said his biggest concern is that there hasn’t been

more public comment. While at least 200 people showed up for several

public meetings on the project, Heffernan was alarmed that only three

people spoke about it at an Aug. 9 City Council meeting.

He’s not sure whether residents should vote on the city hall, but

if they don’t like the project, now is the time to bring it up, he

said.

“If it fills the council chambers with people that are opposed to

this expenditure, then all the better for it, because we’re getting

more public input,” he said.

* ALICIA ROBINSON covers government and politics. She may be

reached at (714) 966-4626 or by e-mail at

o7alicia.robinson@latimes.comf7.