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HomeMy WebLinkAbout04-22-2014 Agenda & Backup City of San Bernardino Volunteer Citizen-Based Charter Committee Agenda Time: 5:30 p.m. to 9 p.m. Date: Tuesday, April 22, 2014 Place: EDA Board Room 201 N. E Street, San Bernardino, CA 92418 The City of San Bernardino recognizes its obligation to provide equal access to public services to those individuals with disabilities. Please contact the City Clerk's Office (909) 384-5102) one working day prior to the meeting for any requests for reasonable accommodation, to include interpreters. Anyone who wishes to speak on an agenda item will be required to fill out a speaker slip. Speaker slips should be turnec in to the City Clerk,who will relay them to the Committee Chair person.Public comments for agenda items are limited t three minutes per person. ROLL CALL PLEDGE OF ALLEGIANCE CHAIR'S COMMENTS PUBLIC COMMENT (LIMIT 30 MINUTES) ACTION ITEMS 1. Approval of minutes from Meeting one and Meeting two 2. Input from the department heads, city commissioners, employee groups and City Manager on Charter changes that will most help the City financially. • Allen Parker, City Manager • Modification of Section 186 with Police Officers Association • Consolidation of Elections • Civil Service language • Stacey Aldstadt, Water Department • Gigi Hanna, City Clerk o Elections • Civil Service Language Clean-up • City Manager • Committee Facilitator • Civil Service Board/Examiner • Police Officer's Association/Human Resources p Volunteer Citizen Based Charter Committee Meeting 1 —Wednesday, April 9, 2014 Minutes The meeting came to order at 6:02 p.m. in the EDA board room, with Committee members Casey Dailey, Dennis Baxter, Gary Walbourne, Hillel Cohn, Michael Craft, Hardy Brown, Phil Savage and Gloria Harrison Present. Committee member Tom Pierce was excused for a work conflict. Also in attendance were City Manager Allen Parker, Committee Consultant Dr. Bill Mathis, City Attorney Gary Saenz and City Clerk Gigi Hanna. The Pledge of Allegiance was led by Casey Dailey. Dr. Mathis introduced himself as a management psychologist in the public sector and discussed his experience, then introduced the City Manager and City Attorney. Mathis laid out the process issues the committee would need to consider, including election of a chair and vice chair, dates of future meetings and how the committee would handle communications and outreach during the process. He suggested the committee review the City of Anaheim's Charter Review Committee Guiding Principles as a sophisticated set of principles that the San Bernardino Committee might want to consider adopting. Mathis said the committee will be attempting to come to a consensus of what should go on the ballot. And it should be the best for San Bernardino, not for individuals. Committee members provided brief self-introductions. Hardy Brown nominated Gloria Harrison as chair. She declined, but said she would be willing to be vice-chair. Michael Craft nominated Hillel Cohn as chair. Cohn declined and nominated Phil Savage. The nomination was seconded by Brown and Savage was unanimously selected as Committee Chair. Cohn nominated Harrison for vice-chair, seconded by Savage; the motion carried unanimously. City Attorney Gary Saenz went over the legal requirements of the Brown Act and the Political Reform Act and the committee member's obligations and responsibilities under them. Saenz then read the following statement about the Charter and bankruptcy: "We are now making progress moving through mediation with the goal of reaching settlement with our creditors, which settlement terms will ultimately be submitted to the Bankruptcy Court as part of a plan for which we must have confirmation by the Court, and by which plan we will ultimately move through and out of bankruptcy. In seeking plan confirmation by the Bankruptcy Court, we must be able to demonstrate (by submitting evidence) that San Bernardino will be able to provide an acceptable level of service to the people of San Bernardino while also being able to pay all creditors in accordance with our respective settlement agreements and pursuant to our plan to exit bankruptcy. At such time, we must demonstrate to the Court that we have made sufficient increases in revenue, or reductions in costs and/or efficiency increases, or a combination of all three, such that we are able to reach and sustain a certain level of solvency as a City. Thus, presently, the City has an extremely urgent need for addressing its fiscal demands and seeking out changes that will enable us to convince the Bankruptcy Court that we have made sufficient adjustments to move us toward solvency. Therefore, as a pressing requirement to get this City through and out of bankruptcy, I believe that our capability to demonstrate the sufficiency of our plan to the Bankruptcy Court when seeking confirmation requires this Committee to solicit input from various City departments and officials for recommendation regarding Charter change that will most likely result in fiscal solvency." Saenz then read the following comments interpreting Resolution 2014-59, the establishing resolution for the committee: "The Resolution neither creates an ad hoc committee nor a standing committee. It is silent as to timeline of the existence of the Committee. Therefore, the Committee will continue to exist until further action by the Council, and you may continue to meet even after the November, 2014, a election. Further,the Resolution provides in Section 1, E,that"The Committee shall report its initial findings to the Mayor and Common Council and provide such recommendations on or before May 19, 2014." The term "initial findings" implies that the Committee will continue to exist, and continue its charge regarding Charter reform after the November election. Section 1, J,provides: "The Committee is directed to review all provisions of the Charter and to consider the ramifications to the City and its residents for deletion and/or modification of any provision." I interpret the section providing that: "The Committee is directed to review all provisions of the Charter"to mean that all Committee members read the entire Charter, but it does not mandate that we, together, discuss every section of the Charter. Such an interpretation is also consistent with the time constraints, due to which I advise that we not go through and discuss the entire Charter section by section. Instead, I suggest that I can provide legal interpretation of the sections or provisions as required and requested. Section 1, J, also provides that the Committee: ..."consider the ramifications to the City and its residents for deletion and/or modification of any provision." I interpret to mean that the Committee's recommendation may be as narrow as the modification of only a portion of one section of the Charter. Section 1, K,provides: "The Committee is directed to consider any and all possibilities for reform, including elimination of provisions." When looked at together with Section 1, J, I interpret it to mean that this Committee has the ability to recommend any reform of the Charter, no matter how small or how extensive, and that the Committee may recommend elimination of any one, or more,provisions of the Charter. Generally, I interpret the Resolution as a whole to be a charge by Council that this Committee ultimately makes a recommendation that will receive voter support in November. Certainly, the Council did not create this Committee to recommend a Charter Reform Plan that would be defeated in November. Therefore, I believe that in order to meet such charge, this Committee should recommend reform that has a very strong likelihood of success if placed on the November ballot. If such is the intention of Council, then such should be the intention and focus of this Committee." Mathis recommended the group use the nine City of Anaheim Charter Review Guiding Principles for a framework in how to move forward and the chairman asked that they be agendized for the next meeting. A motion was made by Brown and seconded by Dennis Baxter to ask the City Manager to direct all city department heads to solicit suggestions for Charter change. The group agreed via consensus. The committee also agreed to: • Use Robert's Rules of Order; • Accept written public comments through the City Clerk's office, via email or regular mail, and those communications would be included in the agendas as well as posted on the City web site; • Provide a 30-minute general public comment period at the beginning of each meeting, with a three-minute-limit per person; and • Hear public comment for each action item, limited to three minutes per speaker, for a total of 15 minutes per item. The committee discussed future meetings and decided that the meetings would be on Tuesdays at 5:30 p.m. from August 9 through May 15, 2014. D Public Speakers 1. Evelyn Alexander said there are two boards and one commission that should be removed from the Charter: the Parks Commission,which is advisory and is already mentioned in the Municipal Code; and the Library Board and the Water Board because they are administrative boards that set policy, hire and fire department heads that do not report to the City Manager. The Library and Water departments should be treated like the other departments and fall under the general supervision of the city manager,with the boards being advisory. She also suggested that the Police and Fire Chiefs be selected by the City Manager. One board that should remain in the Charter is the Civil Service Board,which,serves as an unbiased citizen- controlled appeals board for employees and keeps politics from the hiring practice. And, she said, she hopes that Section 186 can be removed from the Charter. She said that the argument that 186 is needed in order to ensure the best qualified personnel negatively affects the other employees in the City and said all employees should be treated the same. 2. Roxanne Williams said the Anaheim guiding principals were best practices and suggested the committee adopt them and review them at the beginning of every meeting. She asked the committee to be very familiar with the Charter,when it was written,revised and amended. She also suggested that the committee read the Management Partners study because it is groundwork that has already been done on what changes could be made in the Charter. She said by reviewing that report and see what the previous Charter committee did would help save time. 3. Linda Daniels said she wants the committee to change the Charter, to act quickly and get something on the ballot in November. Her first preference for change is Charter Section 186 because she feels it will decrease current expenses and future debt. She asked that the committee keep the Charter simple as possible, but allow for flexibility. She asked that the committee allow nothing in the Charter that restricts future leaders from common sense or good judgment; and keep San Bernardino independent with no set rules that bind the city to patterns or methods used in other cities. 4. Sandra Owen Olivas said when reading through Charter and making decisions, the committee members should call residents in their respective wards to see what residents' interests are for Charter change, because the public speaking time limits will prevent all who want to speak at a meeting the time to do so. 5. Matt Owen submitted a letter into the record with his recommendations for Charter change. He said he had concerns about the propriety of the committee and may be challenged in the future. His suggestions for Charter change lie in the legislative power in Charter Section 30 and he would like to establish a new legislative body,replacing a city council based on wards with a community council based in the neighborhood associations. Under this system, each neighborhood would have meetings and send people to the community council. He also suggested that the city use a public bank so it does not lose control of its funds. He said such a program has worked in North Dakota. 6. Scott Olson said the term Charter reform is being used; he prefers the term Charter review because the group will be reviewing the Charter,but reform makes it sound like the committee will be changing the Charter. He also said that limiting the public comment portion of the meeting limits public input. He said the Management Partners study discussed the relationship between the Council,Mayor and City Manager, a relationship that creates a dichotomy that creates conflict. He said there needs to be a clear chain of command. He also wants to see an update on the mobile home parks and a legal update of the Charter that won't leave the city vulnerable in bankruptcy court. 7. Linda Mohney said the committee's agenda will be about Charter Section 186, although the language in the resolution instructs the committee to review the entire Charter. As this is a big task that cannot be done in a month,the review will be narrowed to Section 186. In its review, the committee should also investigate all that the firefighters do, and the education and training required. 8. Bill Sandefur said changes with the Charter should be short and kept to a few items so it is successful in November. The meeting adjourned at 7:45 p.m. The next meeting is set for Tuesday, April 15, 2014 at 5:30 p.m. in the EDA board room. 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U r-.4 N M CT kn �c � 00 Q\ -- -- -- -- 4 Y t 3 3 a ,aaaazaaa a z � 4.4 � cA 0 Y b y �Uy •U V �ti ••-I � Y t � O +' cz c 3 Cd O O 'd bA O ci3 ppq to u N U O cd 03 .� U Y _>� cn cd a, a -J4 cl U U bLc N U U O •-• U � S" 'C p N :z cg O C cd U �, YC oz m N U ct 03 cn cn > ;:s oQw unN ° . o � U 03 U �. cn pn E" O a U cd O N O N r. by c H m OO U W4 P iP4 W 3 U ° d 3 coo, o � ,� cd oo O� O N•� N M d' N N c N N N N N N U 'Zt M '� e•i M o o o o n� v N 'v M O U t". a3 U N CD U ct cd N O Ct N � o o x r, on o cd O CIS 00 O� O N N ~ N N U c� U cz O N c� N o U A 7K exemption is available for police and fire and allows overtime to be paid on a work period instead of a workweek basis. For example, if the City established a 28 day work period, overtime would be paid only for hours worked in excess of 212 hours. In reviewing Charter Section 186, overtime for the Fire Fighters is based upon a 56 hour week and overtime is provided for any time worked in excess of 56 hours per week. The section states that "All employees . . .assigned to an average 56 hour week, shall be compensated for overtime. . ." If the City decided to go to a "work period" plan instead of a work week, then employees would not technically be assigned to a 56 hour work week. . 4 BE�� 04 �� � d � z v o 9TER D PREPARED STATEMENT OF STACEY ALDSTADT, GENERAL MANAGER, SAN BERNARDINO MUNICIPAL WATER DEPT. TO CHARTER REVIEW COMMITTEE APRIL 22, 2014 STATEMENT TO CHARTER REVIEW COMMITTEE Thank you for giving me the opportunity to talk with you about the Water Department tonight. I will make my remarks short, so as to give you the opportunity to ask any questions that you may have about the Department. I will only be addressing the information necessary at this time to discuss potential "fixes" to the Charter. The pertinent sections of the City's charter, creating the Water Department and its governance structure are Sections 160, et seq. The Charter provides that the Board of Water Commissioners has the authority to establish and collect all water rates and manage the domestic water system. In addition to what I will call "original jurisdiction" over the domestic water system, the Board of Water Commissioners also has delegated powers to manage the sewer treatment plants. Uniquely, the pipelines that deliver sewage to the secondary treatment plant are maintained by the City's Public Works department and capital projects to expand the sewer collection system are managed by the City Engineer. As a result of having "original jurisdiction" over the domestic water system, the Board of Water Commissioners has the ability to raise water rates. It is my opinion, based on extensive research, that the reason for giving the Board the power to raise rates was to keep the politics out of the operation of a critical health- and safety-related utility. Elected officials may balk at the idea of raising water rates, even if absolutely necessary to cover costs that are driven by Federal and state regulations, and particularly in election years. STATEMENT TO CHARTER REVIEW COMMITTEE The fact that the Water Department is solvent, even as the rest of the City is struggling in bankruptcy, attests to the wisdom of the Charter's drafters in giving the Board of Water Commissioners the ability to raise water rates. Those who worry that the Board will impose unreasonably high rates can be reassured by a comparison of San Bernardino's water rates to those of neighboring jurisdictions: the rates are always in the mid- to low- range in the area. And, of course, the Board must comply with the California Constitution in providing a public hearing and opportunity to protest that protects the community from rates in excess of the costs of providing service. Since the Management Partners study, which, frankly, has many erroneous conclusions regarding the Water Department, one of the study's recommendations seems to make a great deal of sense and that is what I'm here to talk with you about tonight. The sewer treatment function was delegated to the Board of Water Commissioners by the Mayor and Common Council in 1974. It is not a coincidence that this was the year that Congress passed the Clean Water Act. The Act would dictate severe penalties and possible criminal liability for violations and it was apparent that the waste water treatment plant was going to require a lot of expensive remediation to comply. In the 40 years that the Water Department has been responsible for sewer treatment, the secondary treatment facility has been in complete compliance with the Clean Water Act. Because the Water Department was not granted "original jurisdiction" over the sewer function, the Board of Water 2 1 P STATEMENT TO CHARTER REVIEW COMMITTEE Commissioners does not have the power to raise sewer rates. The Board must review rate studies and then make a recommendation to the Mayor and Common Council for rate increases. This ratemaking structure is not ideal, for the same reason that elected officials rarely enjoy supporting rate increases during election years. Consequently, there is often a deficit in the Sewer Fund that constricts our ability to manage the waste water system as effectively as the water system. It is absolutely critical to understand that San Bernardino's ability to manage its water resources is inexorably tied to the waste water resource. As anyone who has read a paper lately will tell you, California is experiencing one of the worst droughts in its history. The Bay-Delta, the source for imported water for recharging the basin, is strained beyond its reliability due to water quality and endangered species concerns. The only water resource that is 100% reliable, at a cost, is recycled water. The Water Department has been planning a recycled water project for the last five years and is in the midst of the environmental review process that will allow it to move forward. And yet, the ability to fund the project is completely compromised by a reluctance to raise rates, the only way to fund the project now that San Bernardino's bankruptcy has diminished the Department's ability to seek out bond issuers. The Management Partners' study, prepared in 2007, noted that it would make a great deal of sense to delegate the sewer collection function to the Water Department. Doing so would free up capacity in the Public Works department and in the engineering 3 1 P r. xx STATEMENT TO CHARTER REVIEW COMMITTEE section. While the Department recognizes that this transfer of responsibility makes sense from the City's perspective, it cannot be done, should not be done, without raising sewer collection rates. It appears that, in the months leading up to the bankruptcy filing, the City used money from the sewer collection funds to pay for General Fund obligations. The backlog of capital projects (replacement of and expansion to the pipeline system) is potentially huge. We don't know for sure the extent of necessary rehabilitation because only 30% of the system has been videoed. Federal and state regulations governing the maintenance of the sewer collection system are extensive and also carry the potential for fines, penalties and criminal sanctions. With respect to ratemaking, the last time that sewer collection rates were increased was in 2004! Last year, at the request of the City Manager, Allen Parker, the Water Department proceeded with a rate study for the sewer collection system. The Water Department also prepared a rate study for the treatment system, because a public hearing for a rate increase is something you don't want to have to do twice, if you can avoid it. The rate study confirmed what common sense told us — the sewer collection rates are not enough to cover basic expenses. All of this results in the Water Department's recommendation (a recommendation that has been approved by the City Manager and the former Mayor) that the sewer collection system be transferred to the Water Department for management and the power to set 4 1 P E STATEMENT TO CHARTER REVIEW COMMITTEE rates for both sewer treatment and sewer collection be granted to the Board of Water Commissioners. This concludes my prepared remarks. 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