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HomeMy WebLinkAbout06-Council Minutes CITY OF SAN BERNARDINO 300 N. "D" Street San Bernardino, CA 92418 Website: www.sbcity.org Mayor Patrick J. Moms Council Members: Virginia Marquez Vacant Tobin Brinker Fred Shorett Chas Kelley Rikke Von Johnson Wendy McCammack ~ MINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION AND SAN BERNARDINO CITY HOUSING AUTHORITY OF THE CITY OF SAN BERNARDINO JOINT REGULAR MEETING MAY 2, 2011 COUNCIL CHAMBERS The joint regular meeting of the Mayor and Common Council, Community Development Commission, and San Bernardino City Housing Authority of the City of San Bernardino was called to order by Mayor/Chairman Morris at I :36 p.m., Monday, May 2, 2011, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Roll Call Present: Mayor/Chairman Morris; Council Members/Commissioners Brinker, Shorett, Johnson, McCammack; City Attorney Penman; City Manager McNeely; City Clerk Clark. Absent: Council Members/Commissioners Marquez, Kelley. Vacant: Second Ward. Council Member/Commissioner Kelley arrived at 1:44 p.m. I. Closed Session Pursuant to Government Code Section(s): A. Conference with legal counsel - eXlsttng litigation - pursuant to Government Code Section 54956.9(a). 1 05/02/2011 B. Conference with legal counsel - anticipated litigation - significant exposure to litigation - pursuant to subdivision (b) (I), (2), (3) (A-F) of Government Code Section 54956.9: Inland Communities Corp. v. City of San Bernardino (Paradise Hills) Claim of Monique Castaneda & Mary Guisa C. Conference with legal counsel - anticipated litigation - initiation of litigation - pursuant to subdivision (c) of Government Code Section 54956.9: City of San Bernardino v. California State University D. Closed Session - personnel - pursuant to Government Code Section 54957. E. Closed session with Chief of Police on matters posing a threat to the security of public buildings or threat to the public's right of access to public services or public facilities - pursuant to Government Code Section 54957. F. Conference with labor negotiator - pursuant to Government Code Section 54957.6. G. Conference with real property negotiator - pursuant to Government Code Section 54956.8: I. Property Address: APN: 0142-522-10 2669 West 5th Street, San Bernardino, CA 92410 Negotiating Parties: Emil A. Marzullo, Interim Executive Director, on behalf of the Redevelopment Agency, as agent for the San Bernardino City Housing Authority Under Negotiation: Lease terms and conditions. 2. Property Address: APN: 0142-522-26 2618 West 5th Street, San Bernardino, CA 92410 2 05/02/201 ] Negotiating Parties: Emil A. Marzullo, Interim Executive Director, on behalf of the Redevelopment Agency, as agent for the San Bernardino City Housing Authority Under Negotiation: Lease terms and conditions. 3. Property Address: APN: 0134-054-07,08, & 09 746 West 5th Street, San Bernardino, CA APN: 0134-053-20,21,22,23,25 & 26 Spruce Street vacant parcels, San Bernardino, CA Negotiating Parties: Emil A. Marzullo, Interim Executive Director, on behalf of the Redevelopment Agency, as agent for the San Bernardino Economic Development Corporation Under Negotiation: Lease terms and conditions. Central City North Redevelopment Project Area 4. Property Address: Agency-owned former CinemaStar Theater 4th and "E" Streets, San Bernardino Negotiating Parties: Emil A. Marzullo, Interim Executive Director, on behalf of the Redevelopment Agency, and 10hn Roper on behalf of RegallEdwards Entertainment Company Under Negotiation: Lease rate, terms and conditions. City Attorney Penman announced that the following additional cases would be discussed in closed session: Under Agenda Item No. lA, existing litigation: Human Potential Consultants v. City of San Bernardino, et al. - San Bernardino County Superior Court, Case No. CIVDS 917268; People of the State of California v. Margaret Sherman, et al. - San Bernardino County Superior Court, Case No. CIVDS 917881; 3 05/02/20] 1 Jose Rivera, Ericka Rivera, Andrew Rivera, a minor, and Cynthia Rivera, a minor v. City of San Bernardino, et al. - Riverside County Superior Court, Case No. RIC 10022468. Under Agenda Item No. IB, significant exposure to litigation: Claim of Nova Burch Reading of Resolutions & Ordinances Deputy City Clerk Hartzel read into the record the titles of all the resolutions and ordinances on the regular agenda of the Mayor and Common Council, Community Development Commission, and San Bernardino City Housing Authority. Moment of Silence A moment of silence was observed in memory of former Sixth Ward Council members Norris P. Gregory, Jr., and Valerie Pope-Ludlam. Invocation/Pledge of Allegiance The invocation was given by Reverend David McGlocklin of St. Paul's United Methodist Church. The pledge of allegiance was led by Cynthia Chaparro, a fifth grade student at Lytle Creek Elementary School. 2. Reappointment - Dennis Reichardt - Civil Service Board - Mayor Morris Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner McCammack, that the reappointment of Dennis Reichardt to the Civil Service Board, as requested by Mayor Morris, be approved. The motion carried with Marquez absent. 3. Proclamations & Presentations Council Member Brinker presented the Citizen of the Month Award to longtime community volunteer Rita Arias. Mayor Morris presented a proclamation to Jack Hill of the San Bernardino Area Chamber of Commerce declaring the month of Mayas Law Enforcement Month. Mitch Alderman of SANBAG provided an update on the Downtown San Bernardino and Redlands Passenger Rail Projects and announced that there would be public information meetings on May II at the ESRI Cafe in Redlands, May 12 at the Santa Fe Depot in San Bernardino, and a scoping meeting on May 17 at the SANBAG lobby located at the Santa Fe Depot. 4 05/02/2011 4. Announcements Announcements were made by the Mayor, Members of the Common Council, elected officials, and a representative from the Chamber of Commerce regarding various civic, community, and chamber events and activities. 5. Waive Full Reading of Resolutions and Ordinances Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Brinker, that full reading of the resolutions and ordinances on the regular agenda of the Mayor and Common Council, Community Development Commission, and San Bernardino City Housing Authority dated May 2, 2011, be waived. The motion carried with Marquez absent. 6. Item Deleted 7. Claims and Payroll Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Brinker, that the claims and payroll and the authorization to issue warrants as listed in the memorandum dated April 26, 2011, from Barbara Pachon, Director of Finance, be approved. The motion carried with Marquez absent. 8. Personnel Actions Council Member/Commissioner McCammack stated that she did not support Personnel Item Nos. 4 and 5 (call taker positions); therefore, she would be voting "no." Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Brinker, that the personnel actions, as submitted by the Chief Examiner, dated April 28, 2011, in accordance with Civil Service rules and Personnel policies adopted by the Mayor and Common Council of the City of San Bernardino, be approved and ratified. The motion carried with McCammack voting "no" and Marquez absent. 9. Public Pension Reform Council Member/Commissioner Brinker submitted a document titled, "QUESTIONS ABOUT PUBLIC PENSIONS" which contained questions that he wanted to be answered at the time of the proposed public pension reform presentation. 5 05/02/2011 Public Comments: Robert Jenkins, San Bernardino, CA. Laurie Stalnaker. Shirley Harlan, San Bernardino, CA. Council Member/Commissioner Brinker made a motion, seconded by Council Member/Commissioner Johnson, that staff be directed to make a presentation for the Mayor and Common Council on public pension reform within 60 days. Council Member/Commissioner Johnson made a substitute motion, seconded by Council Member/Commissioner Brinker, that if the public pension reform presentation is brought back, that it be brought back in a workshop format. The motion failed with Kelley and McCanunack voting "no" and Marquez absent. The original motion made by Council Member/Commissioner Brinker, seconded by Council Member/Commissioner Johnson, that staff be directed to make a presentation for the Mayor and Common Council on public pension reform within 60 days failed with Kelley, Johnson and McCanunack voting "no" and Marquez absent. 10. RES. 2011-94 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City Manager to execute a Use of Facilities Agreement between the City of San Bernardino and the Coast Soccer League for use of the San Bernardino Soccer Complex for a 5-year period. Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Brinker, that said resolution be adopted. Resolution No. 2011-94 was adopted with Marquez absent. 11. RES. 2011-96 - Resolution of the Mayor and Common Council of the City of San Bernardino accepting the donations from Petrmder .com and HEAL Organization, and authorizing the purchasing manager to increase the purchase orders assigned to Victor Medical Company for a combined total of $33,516 for FY 2010-11. Council Member/Commissioner McCarnmack made a motion, seconded by Council Member/Commissioner Shorett, that said resolution be adopted; and that the Director of Finance be authorized to amend the FY 2010-11 budget as outlined in the staff report dated April 16, 2011, from the Chief of Police. The motion carried and Resolution No. 2011-96 was adopted with Marquez absent. 6 05/02/2011 12. RES. 2011-95 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the issuance of a purchase order in the amount of $105,806.05 to Burbank Recycling, Inc. for Municipal Solid Waste Disposal Services. Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Brinker, that said resolution be adopted. Resolution No. 2011-95 was adopted with Marquez absent. 13. Mid-Year Budget Review for FY 2010-2011 Relative to borrowing against next year's budget to balance the City Attorney's budget this year, Council Member/Commissioner McCammack stated that she thought there were legal, constitutional requirements for loans and she didn't believe, based on the California State Constitution, that they could loan money against a budget that has not yet been approved for appropriations that have not yet been made. Council Member/Commissioner Shorett made a motion, seconded by Council Member/Commissioner Brinker, that the FY 2010-11 Mid-Year Report be received and filed; and that the Director of Finance be authorized to amend the FY 2010-11 budget as outlined in the staff report dated April 18, 2011 from the Director of Finance. The motion carried with McCammack voting "no" and Marquez absent. 14. Request for Civic and Promotional funding for 4th of July Celebration at Arrowhead Credit Union Park Council Member/Commissioner Brinker made a motion, seconded by Council Member/Commissioner Shorett, that $12,500 in Civic & Promotional funding be approved to conduct the 2011 4th of July Celebration at Arrowhead Credit Union Park. The motion carried with McCammack voting "no" and Marquez absent. 15. RES. 2011-97 - Resolution of the City of San Bernardino ratifying the submittal of a National Institute of Justice Grant application 'Solving Cold Case Homicides Using DNA' and authorizing the obligation and expenditure of the $277,778 grant award. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner McCammack, that said resolution be adopted. Resolution No. 2011-97 was adopted with Marquez absent. 7 05/02/2011 16. RES. 2011-98 - Resolution of the Mayor and Conunon Council of the City of San Bernardino ratifying the submittal of the FY 2011/2012 ABC Grant Assistance Program application and authorizing the San Bernardino Police Department to accept and administer the grant funds upon award by the Department of Alcoholic Beverage Control (ABC). Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Brinker, that said resolution be adopted. Resolution No. 2011-98 was adopted with Marquez absent. 17. Public Hearing - Resolution imposing liens on property located within the City of San Bernardino for uncollected Business Registration fees RES. 2011-99 - Resolution of the City of San Bernardino imposing liens on certain parcels of real property located within the City of San Bernardino for uncollected Business Registration fees. Mayor/Chairman Morris opened the hearing. No public comments were received. Council Member/Commissioner McCanunack noted that some of the properties are rentals and haven't been rented for over a year. She questioned whether the City can still charge them for a permit under such circumstance. City Clerk Clark answered that it was her understanding that it could. Council Member/Commissioner Brinker made a motion, seconded by Council Member/Commissioner Johnson, that the hearing be closed; that the City Clerk be directed to administratively remove any properties from Exhibit A which have been paid prior to the hearing; and that said resolution be adopted. The motion carried and Resolution No. 2011-99 was adopted with Marquez absent. 18. Public Hearing - Resolution adopting General Plan Amendment No. 10-02 RES. 2011-100 - A Resolution of the Mayor and Conunon Council of the City of San Bernardino adopting General Plan Amendment No. 10-02 to change the land use designation from Office Industrial Park (DIP) to Conunercial General (CG-l), Commercial Office (CO), and Residential Urban (RU) on approximately 4.5 acres on the west side of Waterman Avenue, extending from Rialto Avenue to Third Street. Mayor/Chairman Morris opened the hearing. 8 05/02/2011 Council Member/Commissioner Johnson stated that the property was within 500 feet of his employment so he would abstain to avoid the appearance of a conflict. He left the Council Chambers and returned after the vote was taken. Council Member/Commissioner McCammack stated that the applicant is asking for the land use to be changed to Commercial General for existing and planned general commercial land uses desired by the property owners that would not be permitted in the light industrial use district. The staff report also states that the buildings that were built there were built not for Office Industrial, but for Commercial while it was an Office Industrial land use. She stated that that didn't make any sense to her. Terri Rahhal, City Planner, stated that the existing buildings that are there, which are General Commercial buildings, predate the Office Industrial Park land use classification, which was put on this area in 1989. Ms. McCamrnack asked why they would change it to a land use that the buildings that were currently there did not support. Ms. Rahhal answered that at the time, that entire Waterman Avenue corridor was rezoned to Office Industrial Park, and this small strip at the northern end of the district probably wasn't considered specifically. No public comments were received. Council Member/Commissioner Brinker made a motion, seconded by Council Member/Commissioner Shorett, that the hearing be closed; and that said resolution be adopted. The motion carried and Resolution No. 2011-100 was adopted with Johnson abstaining and Marquez absent. 19. Public Hearing - An Ordinance amending Table 06.01, List of Permitted Uses, in Chapter 19.06 of the San Bernardino Municipal Code (Development Code) An Ordinance of the City of San Bernardino amending Table 06.01, List of Permitted Uses, in Chapter 19.06 of the San Bernardino Municipal Code (Development Code), Commercial Districts, to permit movie theaters of four or more screens subject to a Conditional Use Permit in the Downtown Main Street Overlay District. FIRST READING Note: A copy of the proposed ordinance was not included in the backup materials. Mayor/Chairman Morris opened the hearing. 9 05/02/2011 It was noted that staff had requested a continuance of this matter. Council Member/Commissioner Brinker made a motion, seconded by Council Member/Commissioner Shorett, that the matter be continued to the Council/ Commission meeting of May 16, 2011. The motion carried with Marquez absent. 20. City Attorney report on Political Reform Act investigations and prosecutions; policies and procedures followed by the Office on conducting investigations and prosecutions (Continued from April 18, 2011.) Mayor/Chairman Morris noted that the City Attorney had submitted a written report that was contained in the backup materials; therefore. an oral report was not necessary and no formal action was required to receive and file the City Attorney's report. Public Comments: City Attorney Penman, speaking from the public podium, provided his report for the listening audience. Mayor/Chairman Morris declared the report to be received and filed. 21. Reorganization of Print Shop in the Information Technology Department (Continued from April 18, 2011.) Council Member/Commissioner Shorett made a motion, seconded by Council Member/Commissioner Johnson, that the matter be tabled. The motion carried with Marquez absent. COMMUNITY DEVELOPMENT COMMISSION Present: Mayor/Chairman Morris, Council Members/Commissioners Brinker, Shorett, Kelley, Johnson, McCammack; Senior Assistant City Attorney Easland; Economic Development Agency Interim Executive Director Marzullo and Agency Counsel Sabo; City Clerk Clark. Absent: Council Member/Commissioner Marquez. Vacant: Second Ward. 10 05/02/2011 R22. Public Hearing - Relocation Plan - Lugo Senior Apartments, LLC (the "project") (lVDA Redevelopment Project Area) (Continued from April 18, 2011.) CDC/2011-22 - Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to adopt the Relocation Housing Plan for Lugo Senior Apartments, LLC and appropriate funds for the implementation of the Relocation Housing Plan. The hearing remained open. Emil Marzullo, Interim Executive Director of the Economic Development Agency, stated that the project is moving forward and under the law the Agency is required to do a relocation plan. He stated that the relocation assistance will be provided in accordance with the standards provided under the State of California relocation law. Council Member/Commissioner McCammack asked staff who the principals are of the Lugo Senior Apartments, LLC. Carey Jenkins, Director of Housing and Community Development, stated that the LLC consists of Meta Housing and Western Community Housing, which is the nonprofit, social service provider that will be the manager of the property once it comes on line. No public comments were received. Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Brinker, that the hearing be closed; and that said resolution be adopted. The motion carried and Resolution No. CDC/20U-22 was adopted with Marquez absent. R23. Public Hearing - Allocations of 2011-2012 Community Development Block Grant (CDBG) funds; Emergency Shelter Grant (ESG) funds, and Home Partnership Act (HOME) funds, reallocation of prior years' Community Development Block Grant (CDBG) funds; and the 2011-12 Action Plan and Analysis of Impediments to Fair Housing Choice Actions of the Five-Year Consolidated Plan 11 05/02/20 II RES. 2011-101 - Resolution of the Mayor and Common Council of the City of San Bernardino approving the (1) Community Development Citizen's Advisory Committee ("CDCAC") recommendation of Non-Profit Public Service Providers except for Time for Change Foundation and Santa Claus, Inc. and City Projects for the 2011-2012 Community Development Block Grant ("CDBG") funding; (2) Reallocation of prior years' CDBG Funds; (3) Emergency Shelter Grant ("ESG") Projects funding except for Time for Change Foundation; (4) Home Partnership Act ("HOME") Projects funding; (5) Reallocation of prior years' HOME funds; (6) 2011-2012 Action Plan and Analysis of Impediments to Fair Housing Choice Actions of the Five-Year Consolidated Plan; and (7) authorizing the City Manager to execute and submit Federal Grant applications to the U.S. Department of Housing and Urban Development ("HUD"), take all necessary actions to execute Public Service Agreements with approved non-profit agencies and implement City's CDBG funded projects. (R23A) RES. 2011-102 - Resolution of the Mayor and Common Council of the City of San Bernardino approving the 2011-2012 Action Plan as it pertains solely to the allocation of Community Development Block Grant (CDBG) and Emergency Shelter Grant (ESG) funds to Time for Change Foundation. (R23B) RES. 2011-103 - Resolution of the Mayor and Common Council of the City of San Bernardino approving the 2011-2012 Action Plan as it pertains solely to the allocation of Community Development Block Grant (CDBG) to Santa Claus, Inc. (R23C) Mayor/Chairman Morris opened the hearing. Emil Marzullo, Interim Executive Director of the Economic Development Agency, stated that this action for the 2011-2012 Community Development Block Grant (CDBG) program basically mirrors what the Agency has done in the past. He stated that the federal program provides funds to qualified communities, and San Bernardino is one of those communities. He stated that the three broad objectives of the program are to primarily benefit persons who are of low or moderate income, to eliminate slums and blighted conditions in neighborhoods, and to provide services and programs that meet an urgent need. Under those three broad categories, the Agency has a number of different projects and programs that are provided and recommended for approval by the Mayor and Common Council. Mr. Marzullo provided an overview of the amounts allocated for 2011-2012 in CDBG funds, HOME funds, and ESG funds. He stated that for purposes of the 12 05/02/2011 nonprofit organizations, allocations are based upon the HUD requirement that the amount cannot exceed 15 percent of the total CDBG grant. He stated that staff put out a broad solicitation to community nonprofit and community-based organizations, that could apply for a maximum amount of $15,000 each. He stated that those applications were then reviewed by staff and determined to be eligible or ineligible. If eligible, they were then submitted to a citizen's committee, which the Mayor and Council have essentially created. The applications were then ranked, graded and recommended for funding or not. That recommendation was then sent to the Redevelopment Committee, and those applications are before the Council tonight, as well as the broader programs relative to the City functions of code enforcement, library improvements, senior center improvements, mobile home inspection, and street light installation. Council Member/Commissioner McCammack stated that Neighborhood Housing Services, which was included on one of the lists, is a business client so she would have to abstain from voting on Resolution A. Council Member/Commissioner Brinker stated that his wife has two clients, Time for Change Foundation and Santa Claus, Inc., and they were going to be presented separately as Resolutions B and C. He stated that he would participate in the discussion and vote of Resolution A and then excuse himself from the meeting. City Attorney Penman stated that he must abstain because one of the nonprofits is the Salvation Army Board and his spouse is on that board. Although that is not a legal conflict, it is the appearance of a conflict so his office has abstained on this item and Agency Counsel Sabo has reviewed the documents. Pursuant to Resolution No. 2000-279, City Clerk Clark administered an oath to the following individuals that they would provide true and honest testimony: Tony Bocanegra, Sinfonia Mexicana, stated they were rejected for CDBG funds because they were late in submitting their application. He stated that by rejecting them it affects the community as a whole and asked that the Council reverse this decision. Linda Pederson, St. John's Community Success Center, thanked staff for their support in previous years. She spoke briefly of the youth they serve, stating that this year they had been recommended to receive $10,000, but would really like an additional $5,000 if any funds are left over. 13 05/02/2011 Stephen Howard, Frazee Community Center, stated that due to various reasons they were late in submitting their application and, therefore, had been denied any CDBG funding. He requested that the Council reverse this decision, stating that they would like to receive $15,000. Roberto Martinez, Boys & Girls Club of Redlands, who runs the Waterman Gardens location on Alder in San Bernardino, stated that they are looking for funds for their teen program. They were awarded $10,000, but would like an increase to $15,000. Discussion ensued regarding various other funding alternatives for Sinfonia Mexicana and Frazee Community Center, such as Civic and Promotional funding, the Fine Arts Commission budget, and possible distribution of funds that have usually been allocated to Central Lutheran, since they are closing their doors. Mayor/Chairman Morris pointed out that both St. John's Community Success Center and the Boys & Girls Club had been granted $10,000 each, while the Frazee Community Center and the Sinfonia Mexicana had received no funds. He suggested that the Council/Commission could allocate an amount that they agree upon to Frazee and the Sinfonia by reducing every other grant equally to obtain the funding. Council Member/Commissioner Brinker stated that if they were going to consider taking money from all of the organizations recommended to receive CDBG funding, that would include Time for Change and Santa Claus, Inc.; therefore, he would have to abstain on item A (he had already declared a conflict on B and C). Since Ms. McCammack had already declared a conflict on item A, this would leave less than a quorum to vote on the item. City Attorney Penman advised that there was a procedure in the Government Code that if a number of council members abstain due to a conflict and there are not enough votes left to vote on the item, that the council members with the conflict draw straws or flip a coin. Ms. McCammack returned to the Council Chambers and was allowed to make the call on the coin toss. Mayor/Chairman Morris stated that whoever won the coin toss would stay and vote. Ms. McCammack called "heads." Mayor/Chairman Morris flipped the coin, and "tails" won. Ms. McCammack left the Council Chambers and Mr. Brinker remained to vote. 14 05/02/2011 Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Kelley, that Resolution A be adopted with the following change to the 2011-2012 CDBG allocations: That the allocations for each of the 25 approved organizations be reduced by $500 each for a total of $12,500, which would be split equally between the Frazee Community Center and the Sinfonia Mexicana for an allocation of $6,250 each. The motion carried and Resolution No. 2011-101 was adopted with McCammack abstaining and Marquez absent. Ms. McCammack returned to the Council Chambers and Mr. Brinker exited. Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner McCammack, that said Resolutions B and C, be adopted. Resolution Nos. 2011-102 and 2011-103 were adopted with Brinker abstaining and Marquez absent. R24. RES. CDC/2011-23 - Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino (" Agency") to execute an Agreement for Professional Services by and between the Agency and AECOM for Landscape and Lighting Design Services for Theater Square (Central City North Redevelopment Project Area). Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Brinker, that said resolution be adopted. Resolution No. CDC/2011-23 was adopted with Marquez absent. R25. RES. CDC/2011-24 - Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino (" Agency") to execute an Agreement for Professional Services by and between the Agency and Vanir Construction Management, Inc., for Construction Management Services for Theater Square (Central City North Redevelopment Project Area). Council Member/Commissioner Shorett made a motion, seconded by Council Member/Commissioner Brinker, that said resolution be adopted. Resolution No. CDC/2011-24 was adopted with Marquez absent. R26. Public Hearing - Crossroad Petroleum, Inc. - Disposition and Development Agreement (Former ARCO AM/PM 542 North Mt. Vernon Avenue) (Mount Vernon Corridor Redevelopment Project Area) 15 05/02/2011 Resolution of the Mayor and Common Council of the City of San Bernardino approving and consenting to that certain Disposition and Development Agreement ("DDA") and Lease Agreement ("Lease") by and between the Redevelopment Agency of the City of San Bernardino ("Agency") and Crossroad Petroleum, Inc. ("Developer") Mt. Vernon Corridor Redevelopment Project Area. (R26A) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute that certain Disposition and Development Agreement ("DDA") and Lease Agreement ("Lease") by and between the Agency and Crossroad Petroleum, Inc. ("Developer") Mt. Vernon Corridor Redevelopment Project Area. (R26B) Note: No backup materials were distributed. Staff requested a continuance of this item to the next meeting. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Brinker, that the matter be continued to the Council! Commission meeting of May 16, 2011. The motion carried with Marquez absent. 27. Public Comments Roger Henderson, San Bernardino, CA, stated that 20,000 people had been at Seccombe Lake Park for a Cinco de Mayo celebration over the weekend, yet due to the cleanup efforts of the nine park maintenance personnel and many, many volunteers you would never know that many people had been there celebrating. He thanked the volunteers and encouraged them to keep volunteering. Betty Jean Long, San Bernardino, CA, stated that she is fighting crime in San Bernardino. Latrice Johnson, San Bernardino, CA, stated that she had tried to call Code Enforcement, City management and the Mayor to complain about her rental and got no help. She asked where she should go to get help-that she is on a fixed income and needs help. Mayor Morris suggested that she contact Legal Aid. 16 05/02/2011 Scott Olson, Highland, CA, a mobile home resident, spoke regarding rent control in the City's mobile home parks and the fact that mobile home management staff are not giving copies of the City's rent control ordinance, as required, to their residents. He stated that he has contacted the Economic Development Agency and the City Attorney's office, but no one wants to hear them. Amelia Lopez, San Bernardino County Department of Public Health, spoke regarding alcohol and drug control in the city of San Bernardino. Linda Pederson, San Bernardino, CA, asked what the City and its employees are doing that would merit so many lawsuits and what is the solution for the problem. Bob Chairez, representing the Inland Empire Latino Art Association, invited everyone to join them for a reception and art show at the Feldheym Library on May 14 from 12 noon to 3 p.m. James Penman, San Bernardino City Attorney, spoke regarding his responsibility to investigate complaints received by his office. He stated that the Brown Act requires that public meetings be held in public; however, if the Mayor or Council can prevent comments the Brown Act is thwarted. Candace Loya of Congressman Joe Baca's office stated that an Education Summit sponsored by Congressman Baca would be held from 8 a.m. to 12 noon on May 17 in Obershaw Hall at California State University San Bernardino. 36. Adjournment The meeting adjourned at 6:49 p.m. The next joint regular meeting of the Mayor and Common Council and Community Development Commission is scheduled for 1:30 p.m., Monday, May 16, 2011. RACHEL G. CLARK City Clerk By: h z>. ~~ Linda E. Hartzel Deputy City Clerk 17 05/02/20]] CITY OF SAN BERNARDINO 300 N. "D" Street San Bernardino, CA 92418 Website: www.sbcity.org Mayor Patrick J. Morris Council Members: Virginia Marquez Jason Desjardins Tobin Brinker Fred Shorett Chas Kelley Rikke Van Johnson Wendy McCammack ~ MINUTES MA YOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING JUNE 15, 2010 ECONOMIC DEVELOPMENT AGENCY BOARDROOM 201 NORTH "E" STREET SAN BERNARDINO, CALIFORNIA This is the time and place designated for a joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino from the joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission held at 5:00 p.m., Tuesday, June 8,2010, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. The joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino was called to order by Mayor Morris at 5:13 p.m. on Tuesday, June 8,2010, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. Roll Call Present: Mayor Morris; Council Members/Commissioners Marquez, Desjardins, Brinker, Shorett, Kelley, Johnson, McCammack; City Attorney Penman; City Manager McNeely; City Clerk Clark. Absent: None 1. Closed Session Pursuant to Government Code Section(s): 06115/2010 A. Conference with legal counsel - eXlstmg litigation - pursuant to Government Code Section 54956.9(a). B. Conference with legal counsel - anticipated litigation - significant exposure to litigation - pursuant to subdivision (b) (1), (2), (3) (A-F) of Government Code Section 54956.9. C. Conference with legal counsel - anticipated litigation - initiation of litigation - pursuant to subdivision (c) of Government Code Section 54956.9. D. Closed Session - personnel - pursuant to Government Code Section 54957. E. Closed session with Chief of Police on matters posing a threat to the security of public buildings or threat to the public's right of access to public services or public facilities - pursuant to Government Code Section 54957. F. Conference with labor negotiator - pursuant to Government Code Section 54957.6. G. Conference with real property negotiator - pursuant to Government Code Section 54956.8. City Attorney Penman announced that the following cases would be discussed in closed session: San Bernardino City Professional Firefighters, Local 891 v. City of San Bernardino and San Bernardino Fire Department - San Bernardino County Superior Court, Case No. 1007708. San Bernardino City Professional Firefighters, Local 891 v. City of San Bernardino and San Bernardino Fire Department - San Bernardino County Superior Court, Case No. 1007709 2. Budget Workshop and Deliberations - Fiscal Year 2010/11 - City, Capital Improvement Program, and EDA Budgets Mayor Morris stated that this meeting is the first of several meetings over the next four weeks concerning the 201012011 budget, the CIP, and the EDA budget. He explained that for the first time in the City's history we will be looking at a program-based budget and also looking at a study of the Integrated Waste Management Division prepared by the Matrix Consulting Group. 2 0611 5/20 1 0 City Manager McNeely stated that the transition from a line item budget to a program budget has begun this year. To start the budget kickoff, he asked Finance Director Barbara Pachon to summarize a five-year projection as well as assumptions for the 2010/11 budget. Following her presentation, representatives from the Matrix Group would present their findings and analysis. Interim Public Works Director Randy Kuettle would kick off the departmental presentations and provide an overview of his department, followed by a presentation by City Engineer Robert Eisenbeisz who would talk about the CIP. Mr. McNeely stated that when he took on the assignment as City Manager for San Bernardino, there was discussion about our budget document and making it a more effective tool for our policy makers, the Mayor and Council, as well as for staff and the community. His desire was to transform the line item budget into a much more productive, informative document that provides a lot more information about this city and about the operations of every single department. Mr. McNeely explained components of the program-based budget and stated that every single year the Mayor and Council will see in each individual department what accomplishments they have been able to achieve, followed by what their major issues are for the upcoming year. He asked the council members to pay particular attention to performance measures, as that is where people are held accountable. Mr. McNeely noted that two budget documents will be submitted. The first document, called Plan A, lays out the status quo budget that we currently have in order for the City to maintain the same level of services that we have right now. The caveat in making that statement is that the City is facing a $24 million deficit so the only way to maintain the existing service levels is to balance the budget and somehow make up that $24 million deficit. He stated that assumptions have been made in the budget that incorporate revenue options for the Council to consider in terms of balancing the budget. After the departments present the budget outlined in Plan A, they will come back with the second budget document which is an alternate budget, Plan B, and that Plan assumes no revenue increases and no enhancements. Plan B calls for cuts in service levels in order to address the deficit. Finance Director Barbara Pachon stated that for years the City has had a structural deficit, and that exists when expenditures are more than revenues. In the past, budget shortfalls have been eliminated mostly by eliminating positions or using one time revenues or increasing fees. Mrs. Pachon pointed out that in the 2009/2010 budget, 86 positions were eliminated and furloughs were implemented. The current shortfalls, starting in FY 2008/09 to the current fiscal year, have been even worse due to several factors occurring throughout the country: 3 06/15/2010 collapse of the financial industry, declines in housing values, skyrocketing foreclosures, high unemployment rates, stock market losses, and the State of California's billion dollar deficit. She stated that here in San Bernardino, unemployment is up to 19.2 percent, sales tax revenues are at their lowest in 15 years, major development revenues are down over $3 million, utility users tax and property tax revenues are down from their highest point, reserves are low and personnel costs are increasing. In addition, there are unfunded retirement liabilities, equipment in decline, deferred maintenance, and the City is in a weak borrowing position. Mrs. Pachon reviewed the Fiscal Year 2010111 Preliminary Budget and noted that there are assumptions built into the budget, as follows: that the real property transfer tax would be increased and bring in an additional $1.5 million of revenue; an increase in the refuse, water, and sewer charge to 15 percent, which would bring in about $6.2 million; an increase in the Fire Department's business inspection fees that would bring in just under $400,000; and fee increases for unauthorized sign fines and a yard sale permit fee. Another item under consideration is the sale of the Convention Center to EDA for $2.4 million, based on an appraisal that has been done. Under the category of efficiencies, Mrs. Pachon explained that the Human Resources Department will be doing H.R. functions for the Economic Development Agency for a net savings of $50,000; a debt collection program and audits are under way and they are factoring in additional revenues of about $400,000; personnel costs assumed a $10.7 million savings, and she noted additional savings from vacancy savings and grant credits. 3. Presentation and Discussion of Matrix Consulting Group's Management Study of the Integrated Waste Management Division City Manager McNeely explained that the Matrix Consulting Group had spent the last three or four months working and meeting with staff, meeting with employees and managers, and going through operations of the Integrated Waste Management Division from top to bottom. He stated that Matrix Consulting Group had prepared a report of their findings and their recommendations. Mayor Morris introduced Gary Goelitz, Vice President of Matrix Consulting Group, Palo Alto, CA. He noted that evaluation of solid waste collections is a core business of their company and they have done work all across the country in cities such as Spokane, Washington, Scarsdale, New York, Springfield, Massachusetts, Scottsdale, Arizona, and Beverly Hills, CA. 4 06/15/2010 Mr. Goelitz explained that the study of the Integrated Waste Management Division has resulted in an accountability-based plan of implementation that assigns specific responsibility and timeframes for implementation. The study includes 130 recommendations and it is posted on the internet. Mr. Goelitz commented on the things that the Division does do right; Le., residential services such as trash and yard waste and recycling are all delivered with one-man crews and that is a best practice. Another best practice is using a 4/10 work schedule for collection of residential waste, because it reduces idle time in terms of lunch breaks, getting ready, and cleaning up at the end of the day. He also pointed out that in some cases the productivity of the commercial front loader crews exceeds best practices and is resulting in a tonnage of the trucks exceeding legal speed limits so they will have to increase route sizes for one or two days. Another positive noted by Mr. Goelitz was that three or four years ago, the Division was spending hundreds of thousands of dollars in overtime. The collection of routes was reconfigured and overtime is now required on a day-to-day basis to complete the collection of routes. As a result, 99.8 percent of the time collection of routes is completed on the day that they are supposed to be collected. One of the challenges that the Division has is contamination of the recycled waste stream. Based on data from July 2009, it looks like there is a 25 percent contamination rate which exceeds the benchmark and actually costs money because the recycling facility pays less for recycled goods based upon that contamination rate. Consequently, there are two issues that need to be addressed. The first is educating consumers and the second is that the consumer is not listening to provide financial incentives. Mr. Goelitz stated that the City is receiving a much higher level of support from integrated waste than it would have if it had been outsourcing this service. He stated that he views the Integrated Waste Division as an underperforming asset which means that the operators and supervisors of that division are capable of so much more than they are delivering right now. In the past, the management of that division has not adequately challenged staff to do their best and management of that division needs to work together with supervisors and operators to get the best. Mr. Goelitz indicated that route sizes for residential trash, yard waste and recycling collection are lower than benchmarks. He found that there is significant unused capacity of approximately 26 percent for residential trash; 33 percent for residential recycling; and 56 percent for residential green waste. He stated that management is ineffectively balancing routes. 5 06/15/2010 Mr. Goelitz suggested that use of the one-person crew has become common practice in solid waste collection and management needs to focus on converting most routes, if not all, to one-person crews. With regard to recycling, the division has not yet developed an effective education program for businesses and residences. Recycling services are not provided for multi-family dwellings and recycling services for businesses are extremely limited. Mr. Goelitz stated that the salary is set too low for recycling specialist positions and salaries for those positions need to be increased so that the right kind of staff can be attracted. He stated that the Integrated Waste Division has actually implemented only 12 percent of the recommendations in the R3 Consulting Report. One of R3's suggestions was to add ten positions to the Integrated Waste Division; however, Matrix suggests that the City head in the opposite direction by consolidating utility billing centers and reducing staff. He also recommended that the division conduct a cost allocation study, a cost of service study, before increasing the franchise fee to 15 percent or whatever amount is deemed appropriate. The cost allocation study will verify the amount of support provided by the General Fund, Water Fund, and Fleet Fund to the Refuse Fund or Integrated Waste Fund. Also noted was the fact that a formal skills assessment and training plan for each employee has not been done in the division. Matrix is recommending the addition of two positions to be paid for at least initially by the Integrated Waste Fund. One is an accountant position as a way to transition dependency on the consultants as it relates to cost of services study and cost allocation study. The second position is a performance auditor to work in the Office of the City Manager to make sure that these recommendations get implemented and identify further opportunities for cost savings. He commented that positions such as a performance auditor should be able to pay for themselves three or four times over on an annual basis. Another observation made by Mr. Goelitz was that in his 37 years of being in the business, he had never seen two utility billing centers in two different departments. He commented that effective collection procedures are not in place, and if someone refuses to pay the bill, the Division does not try to get the money owed. As a consequence, there are seven figures worth of outstanding debt that is largely uncollectible because of ineffective collection procedures. He noted that the Water Department and Integrated Waste are using two different versions of utility billing software with two different databases. It's not a one-stop shop that you would expect from utility service. The percentage of calls abandoned by Integrated Waste exceeds benchmarks. In essence, on abandoned calls the customer simply gets tired of waiting so they hang up. The level of accounts per customer service representative also exceeds benchmarks. 6 06/15/2010 Mr. Goelitz stated that the Water Department has submitted a proposal to provide billing services at a cost that is $519,000 less a year than the Integrated Waste Division currently incurs and they can provide the services without any additional staff. Mr. McNeely indicated that they have been in conversations with the Water Department and they have agreed to enter into a Memorandum of Understanding that would consolidate billing operations. Assuming the City Council approves moving forward with that, the consolidated billing operation could be operational as soon as August and would save roughly $500,000 on an annual basis. Mr. McNeely noted that regarding consolidating the billing operations, it is a meet and confer item so they will meet with the bargaining groups. Following Mr. Goelitz' presentation, discussion continued and he responded to questions posed by members of the City Council. Public Comments: Raymond Crawford, San Bernardino, CA; Paul Munz, San Bernardino; CA; Tom Ramsey, San Bernardino, CA; Joe Bonadiman, San Bernardino, CA; Charles Greenwood, San Bernardino, CA; Ricky Parker, San Bernardino, CA; Joe Arnett, San Bernardino, CA; Ray Allende, San Bernardino, CA. Roger Edmonds, San Bernardino. City Engineer Robert Eisenbeisz gave his presentation on the Capital Improvement Program (CIP) for FY 2010-2011/2014-2015. Mr. Eisenbeisz noted 2009110 accomplishments, explained funding sources for the projects, and then spoke about the 2010/11 proposed budget and highlights of significant projects planned for the coming year. Discussion followed and Mr. Eisenbeisz responded to questions from the Council members. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Johnson, that the recommendations submitted by Matrix regarding solid waste and refuse services be approved. The vote was taken following further discussion. City Manager McNeely suggested that the motion include language that staff be directed to work with the City Attorney's Office to address all legal issues. City Attorney Penman requested that the motion be subject to the approval of the City Attorney's office on Proposition 218 issues. 7 06/15/2010 Council Member/Commissioner Kelley amended his motion, seconded by Council Member/Commission Johnson, that the recommendations presented by Matrix Consulting Group's Management Study of the Integrated Waste Management Division be approved; that staff be directed to take all actions necessary for implementation of the recommendations, with the exception of proposed revenue- generating measures subject to Proposition 218; and, that the City Attorney confer with the City Manager and come back to the Council before a decision is made on revenue-generating measures. The motion carried unanimously. Council Member/Commissioner McCammack requested that the record reflect her protest to the hiring of any additional staff until the Council has a full understanding of the implementation of the revenues that will or will not be generated. She noted that she did not want to vote against the whole proposal because it is a good proposal, but she did not believe it would be prudent to hire additional staff. Randy Kuettle, Acting Director of Public Works proceeded to give a PowerPoint presentation of his department's preliminary budget. He reviewed the department's top accomplishments for FY 2009/10 and highlighted major issues for FY 2010/11, including issues such as deferred maintenance/replacement of street lights, sidewalks, curbs, gutters, pavement, sewers and facilities, the installation and inspection of four energy efficiency projects in City buildings, and coordination of major transportation projects. Council Member/Commissioner Kelley asked if the city recoups dollars from an insurance carrier when a vehicle strikes a pole in a car accident and the pole is knocked down. Mr. Kuettle stated that the pole knockdowns are referred to the Risk Management Division and insurance companies are then contacted to collect for the cost of replacing the poles. Mr. Kelley asked if once those dollars are collected, do they go into the General Fund or are they specifically allocated to replace the knocked down poles. Finance Director Barbara Pachon explained that there is a separate revenue account called damage claim revenue. In response to a question from Council Member Kelley, Mr. Kuettle indicated that there are about 70 knockdowns citywide. Mr. Kelley suggested that it would be prudent to ensure that when the money is collected to replace a pole that it's not thrown into an account that's going to be spread all over the place. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner McCammack, that a separate Finance Departtnent account on pole replacements be established and that the poles be replaced as monies for knockdowns are recovered. The motion carried unanimously. 8 06/15/2010 Public Comments: John Valdivia, San Bernardino, CA. 4. Adjournment At 9:20 p.m., the meeting was adjourned to 5 p.m., Wednesday, June 16, 2010, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino. The next joint regular meeting of the Mayor and Common Council/Community Development Commission is scheduled for 1:30 p.m., Monday, June 21,2010. RACHEL G. CLARK, CMC City Clerk ~~~~ ~~~~ 9 06/15/2010