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HomeMy WebLinkAbout05-13-2014 Agenda & Backup City of San Bernardino Volunteer Citizen-Based Charter Committee Agenda Time: 5:30 p.m. to 9 p.m. Date: Tuesday, May 13, 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 turned in to the City Clerk,who will relay them to the Committee Chair person. Public comments for agenda items are limited to 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 Five. 2. Reconsider Charter Reform Principles & Objectives. 3. Consider Further Recommendations to City Council • Replacement Language for Section 186 • Amendment or Repeal of some or all of Article X of Charter • Modification of Charter Provisions Concerning the Water Department. • Such Others as Committee Members May Suggest 4. Determine Manner of Presentation of Initial Recommendations to City Council. 5. Determine Recommendations to Concerning Ongoing Charter Review Process. 6. Agree on Time and Date of Next Meeting. ADJOURN 0 Minutes Packet (Draft Minutes and handouts from 5/6/ 14 meeting) D Volunteer Citizen Based Charter Committee Meeting 5 —Tuesday, May 6, 2014 DRAFT Minutes The meeting came to order at 5:30 p.m. in the EDA board room,with Committee members Casey Dailey,Dennis Baxter, Gary Walbourne,Hillel Cohn, Michael Craft, Hardy Brown,Phil Savage, Tom Pierce and Gloria Harrison Present. Also in agettiance were City Attorney Gary Saenz, City Manager Allen Parker, Facilitator Bill Mathis*V' ed late) and City Clerk Gigi Hanna. Committee chairman Phil Savage called the meeting to order, Clerk Hanna read the roll call and the group recited the pledge of allegiance. Chair Savage said that he had a few more items to add to the Principles and Objectives list the committee had adopted at its April 29 meeting: • PRINCIPLES & STANDARDS. The Charter should set forth guiding principles and standards, not detailed rules and procedures • ENABLING. The Charter should be designed to enable the City to operate in an efficient,businesslike manner. He asked that the matter be agendized for reconsideration at the May 13 meeting. He discussed the procedures the committee would be following in the remaining two meetings. He said the May 13 meeting would be where the committee would be finalizing its recommendation for the Council and that the group may need an additional meeting to work on the presentation. The committee decided that if it needed an additional meeting, Saturday,May 17 at 1 p.m. would be the preferred day. After questions from committee members,the City Attorney advised the committee that May 19 is the deadline for the committee to make a recommendation to the council,that specific language (for any proposed Charter amendments) does not need to be finalized by that date. There were no requests to speak under Public Comment. ACTION ITEMS 1. Approval of Minutes. 1 i The committee approved the minutes from Meeting Four,with minor changes on page 9 and page 11. 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,passed out documents that had been requested at the previous meeting to explain the benefits for fire and police. (Documents attached). He said the documents were self- explanatory and provided no further report on them. Parker said police and management are still negotiating and have not resolved any language to present to the committee,which he hoped to have something to present to the committee at its next meeting. Regarding Presentation by the Firefighter's Association on Charter Section 186. Kenneth Konior said he was not at the meeting to represent Local 891,the Firefighter's Association,but rather at the request of Committee Member Gary Walbourne,who wanted him to comment on some of the data Konior has released via social media. Konior said he had analyzed Section 186, using numbers he obtained from publically available documents available on the city web site,to counter what he said described as one-sided media coverage of the topic. He said one reason that Local 891 was unable to make a presentation was pending litigation and the gag order placed on 0 parties involved in the bankruptcy. Konior said his findings were in the document handed out by Steve Tracy, Firefighter Association President, at the committee's April 29 meeting, entitled: "Charter Section 186;A Fire Department Perspective." Konior then discussed various aspects of the document. He said that since the bankruptcy,no one in public safety has received any kind of a raise. Any fractional percentage of increase or decrease in salary under the auspices of Section 186,there's also been a significant concession to offset what that was,he said. He said that despite media coverage highlighting the$1 million raise given to public safety,his part of that amount was 17-cents-per-hour and this year it was 6- cents-per-hour, offset by a 14 percent concession. Konior said the same had been true for the past four years. He said it isn't always a raise,that in 2010/11,his position received a pay cut. He said that since 2009, the fire budget, like the City's,has steadily declined while call volume has increased. Dailey asked what he attributed the 25 percent increase in calls over the short period of time to and Konior said it was unclear. He mentioned the Citygate Associates analysis of the department, and said that he believed the answers would be in that study, due to the Council in June. 2 He said that 186 does not tie management's hands, and that the increases received over the last few years, offset by concessions defeats that argument. Dailey pointed out that of the 56 cities used in the Section 186 salary-setting process, eight are in the Inland Empire and asked if it was fair to assume that San Bernardino would need to compete with Bay Area cities to attract employees? Konior said he did a local total comp study and that compares San Bernardino with other local cities. That considers not just salary,but fringe benefits,health benefit,post-employment health benefits—benefits that other local cities provide that San Bernardino does not. He said he did a study based on his position and he came out near the bottom,when compared to similar positions. in local cities. Did it for himself and said he come out near the bottom when compared to local departments. Craft asked for clarification about the formula for determining the cities used in the salary survey. Helen Tran, Human Resources Division Manager, said the city uses a list of cities with 100,000 to 250,000 populations,with 57 cities meeting that criteria this year. Once the City completes its survey of the 57 cities,the 10 in the middle are chosen to determine the Section 186 salary level. Konior said he had analyzed and compared the hourly wage for entry level positions for local cities, and added San Bernardino's EPMC concession into the equation. Harrison questioned why the numbers did not include the median income for city and county. Pierce said the numbers do not discuss what the average firefighter earns,just entry level, and no discussion of overtime. In response to a question by Brown regarding whether the hourly wages were based on a 40-hour or a 56-hour work week, Konior said it was the latter and explained that cities use the total monthly hours to determine hourly wages. He discussed back-fill vs. overtime costs and said that overtime involves cost recovery opportunities; that back fill is what the department does to maintain daily operations. Pierce asked if backfill is paid at standard rate and Konior said that depends on the work period versus work week. Committee members asked if backfilling was common in the industry and Konior replied that it is. He said a work period can be anywhere from 7 to 28 days, and the City went to a 24-day work period about five years ago; for any hours worked in excess of 182 hours, fire personnel incur premium pay. The issue is currently in litigation, he said. He explained how firefighters' shifts work in the city. He said it is more cost effective to back fill rather than hire more people. 3 i Harrison asked what concessions included. Konior said it included, in the 2009/10 year, a 10 percent negotiated concession, and the next year it was imposed, leading to a $1,432-per-month salary deduction from February through June 2011. Konior explained the reason for specific staffing levels and response times within four minutes. He said he doesn't know how often the City department meets that time factor,but expected that the Citygate report will cover that. He pointed out several (NFPA 17 10)benchmarks for proper fire response times. Baxter asked how many cities local cities pay the full 9 percent employee share of PERS. Konior said Redlands,Riverside, Corona and Colton. Redlands Fire agreed a few years ago to the pay the employee share,but it was introduced incrementally over several years, in exchange for longevity pay. Baxter asked if that agreement had come via collective bargaining and Konior said it had. Craft discussed an incident in his neighborhood from five years ago,when a young boy was trapped on the second floor of the home and said he is struggling with a way to get the extra firefighter on the truck to avoid similar situations. Konior said that in a life-safety situation, whether there are three or four people on scene, they will go into the house. Cohn asked what the appropriate number of stations are for the city; Konior said he expected the Citygate study to have that estimate and he anticipates that the consultant will recommend more stations. There was discussion of the staffing levels of the city's twelve stations. Craft asked about whether the city could forecast where the need for fire service is, and Konior said there is no way to anticipate that. He closed his presentation questioning the goal is for repealing Section 186. He questioned the consequences of such a move and said he doesn't believe it will cause the city to become solvent, get potholes filled, street lights working, improve the organizational structure of the city or make employee negotiations simpler. Parker said he wanted to respond to the presentation from a manager's perspective, and said that fire suppression is risk management and,risk management always comes down to what one can afford. He has asked the consultant to look at what the minimum number of stations the community can supply. He said the city cannot afford the ideal model in any budgetary circumstances and it is because the city has been dealing with ideal models that it finds itself in its current fiscal situation. He said one difficulty with this particular department is the number of EMS/medical service calls received, about 30,000 calls annually and about 85 percent of the department workload. He said offering the option for others to bid on providing EMS service would free up the fire personnel to do fire suppression. C 4 There is a lot of spectrum to look at this through,not just a Section 186 issue, except that 186 constrains us from contracting for services. It is beyond what people get paid, the overtime being paid,he said. It needs to be put in the context of what you can afford; it is a much broader picture than what level of raise they got over the years. Dailey asked if the Charter forces the emergency service to be under the auspices of the FD. Parker said legal opinions from the previous City Attorney maintain that the Charter language precludes the city's ability to contract out, or even ask for an RFP to do so. It also restricts the length of the shift. He said he has encouraged city fire to go to a 72-hour shift, such as that implemented by CalFire, which would reduce staffing from 133 to 106,just on the basis of the shift. He said that is a management decision, and something to be negotiated,but that the legal opinions about Section 186 preclude him from even bringing the subject up. Dailey said that collective bargaining in other cities offers the same kind of negotiation based on salary surveys and asked whether modification or removal of Section 186 would do anything to not make San Bernardino average anymore. Konior said he is assuming that there is negotiation going on. He said his understanding of how it has worked in the past 7 years is that one side hires lawyers to push a piece of paper at the other side, and say this is what we're taking from you this year. There is a fear that if we lose that Charter protection,we'll be the lowest paid fire department anywhere. Walbourne asked if 14 more firefighters and got rid of all the overtime,but Konior said there are several considerations and it is not an easy answer. Parker said there are ways to end up at the same place and that salary levels can be handled in negotiation it does not need to be cemented in the Charter. Baxter said he was struck by how miniscule the raise Konior had mentioned receiving and noted that Section 186 had not benefited him. Konior countered that it had benefited him in the sense that it kept salaries average and stable, whether times are good or bad. Cohn asked if surrounding agencies worked with city fire and if it is figured into response times. Konior said there are Mutual Aid Agreements and referred more questions to the fire chief. There was a question about the acceptable level of risk and Parker said it is a matter of the community deciding what it wants and what it can afford. He said is comes out in a political process, and a community process,with risk management informing management decisions. He said in his personal opinion fire is best presented on a regional basis. He said there are several deployment models that can be considered. Craft asked Parker if in the Citygate study would consider paramedics-only response for medical emergencies. Parker said there was already a recommendation that if the city decided to stay in the EMS business,the city needs to go back to two-man trucks with smaller vehicles for those kind of calls because 30,000 annual EMS calls are wearing out fire trucks. Pierce said what the average total income of a firefighter was in 2013. Parker said he would provide that,with the names removed. He later passed out a document with that information. (Document attached) 3. Entertain additional specific proposals from Committee members for Charter review Nothing was proposed by Committee members. 4. Discuss and deal with"now"vs. "later"categorization and priority of consideration of Charter change topics amongst the"now"category. Nothing was changed regarding prioritization of Charter change topics. 5. Discussion and consideration of the Garter discussion topics in order of their priorities • Charter Section 186 Savage suggested no one put a motion on the floor regarding 186 until everyone had had a chance to present their comments. He passed out a list (entitled List of Some Section 186 Issues, attached) of what he considered were benefits and drawbacks of Section 186. Brown's grandson read a prepared statement regarding repealing or suspending Section 186 for four year: Ever since this committee was put into place the BIG ELEPHANT in the room has been Section 186 To use the elephant as a metaphor for 186, when we brought it into the house many years ago it was small and seen as a remedy to our public safety problems in the city for recruitment, retention, and fair compensation for our neighbors who were putting their life on the line everyday they left home for us the citizenry of San Bernardino. As the years went by we have seen this elephant/186 grow to eat up 68%to 72%of the budget. This has reduced our ability to fairly allocate resources to other services that we expect our city government to provide. It has forced us to cut down on other employee services and compensation just to feed the elephant. It has not made us safer nor improved moral to the staff as evident of many past votes by the association members against former chiefs and the city elected officials. As a matter offact the elephant/186 has caused our other employees to be treated in a disparate manner. I do not want to place policies into law that has the effect of discriminating against an employee population that is comprised of mostly women, Blacks, and Latinos. 6 i i i None of these other employees in our city get their compensation placed on automatic pilot with the highest income cities in the state. Are our other employees less valuable than them? This elephant/186 has outgrown our ability to be managed by the elected leaders we elect to run our city. I saw this firsthand when the council was wrestling with reductions in the budget for the city and had to by the Charter allocate$1 million dollars to public safety. It made no sense to me then and not now. They wanted to do the right thingfor the city but we the voters had brought this elephant/186 into the Charter and they could do nothing. We tied their hands. We even recalled some people from office because of their inability to manage this city so in my mind, we have an obligation to remove or suspend this elephant/186 from the Charter before it destroys the city. Let us return employee associations rights to negotiate for these 186 provisions with our paid management staff with council oversight and approval. I am not advocating and never will call for reductions in employee pay, if we can pay, but that is something our elected officials must consider based on the economic conditions of the city's ability to pay and the economic conditions of the current times. I must say the police association, if my information is correct, is to be applauded for their understanding of the financial situation of the city and state and making concessions when they had no legal obligation to do so. Their position could have been,your bankruptcy is your problem,just give me what is legally mine under the Charter passed by the citizens. As a former member of International Brotherhood of Electrical Workers and United Steel Workers ofAmerica I know that is the position I would have advocated. It is my position to let the voters in on this conversation on whether to repeal or suspend this section of the Charter. If they repeal then our elected officials will sit down at the negotiation table with the association for these same issues found in Section 186 If it were suspended for,four years it will allow our elected officials to sit at the negotiation table with the association to discuss the same issues in 186 and we would then see how much the public associations understand the city's financial crises. The current situation has produced villains on both sides of this issue. I think this will provide us with a win-win opportunity for the taxpayers and those we elect. There is mistrust on both sides and we must give our newly elected leaders an opportunity to lead and build trustworthy relationships with our support 7 Baxter said he agrees that the elephant in the room has been fed until we are no longer able to �' p g feed it,but he thinks something needs to be done on a permanent basis. He said it sounds t him like Section 186 doesn't do much for fire and said he thinks collective bargaining is the tool to be utilized in order to keep employees. Pierce said he is uncomfortable with determining salaries differently for different groups of city employees. He called San Bernardino the outlier,which of the 22 charter cities reviewed,none have a 186-like automatic adjustment system for salaries. They all use collective bargaining, and they are average, he said. It is hard to envision a circumstance where police and fire wouldn't effectively negotiate. People have said they like being a charter city because they like control over the decisions,but essentially we cede control to others through Section 186. Pierce said that having reviewed earlier budgets, he does not believe that Section 186 was the major factor in the city's financial problems,but rather generally weak budgetary practices. He said the Council needs to manage the budget more effectively and needs more flexibility to do so. Harrison said the Council and Mayor needs as much flexibility as possible because they are the ones we elect and are supposed to keep accountable. As a city, we have to determine what our priorities are and I don't think we've had that conversation, at least not lately. I am encouraged by the activity in the city right now, of neighborhood organizations talking about what is needed in the community and they are basically saying what they want is services; I see Section 186 as a deterrent to that. She said the language of the Charter and legal opinions that have constrained the city need to be studied. Craft said San Bernardino can create revenue by being a safer city. He said they do what they can to increase public safety and get the procedure out of the Charter. He said he wanted to think about the opportunities on the table and said he was not inclined to repeal 186 in its entirety. He said he believes it can be modified and made more acceptable to everyone. Cohn said the committee needed some kind of framework for their decision making and read his Statement in Principle of Charter Review: We affirm that our city must provide the full array of service that make it a place where all residents can experience and enjoy physical and emotional safety, cultural and educational enrichment, recreational and entertainment opportunities. We also affirm that our city must provide a climate for economic well-being and growth which includes attracting new business and new residents. To that end we affirm that our city must treat all of its residents and institutions with fairness and equality. We place high value on the loyalty and service of all city employees and believe that they must be treated fairly and equitably. 8 Wefirmly believe that f or city employees to enjoy sense of security in the immediate and long-term future our city must emerge from bankruptcy as soon as possible and restructure its fiscal position. Thus, no individual or employee association or labor group should be accorded preferential treatment in the Charter or in practice. Cohn said he is not sure whether Section 186 is a service to public safety employees or not,but he is concerned that all city employees have equal opportunity and be treated equally in the collective bargaining process. He said some would fare better than others in that process,but that that is the nature of collective bargaining. Tying the hands of elected officials on something that has such tremendous financial implications,by not allowing for an open negotiating process, does the employees and citizens a disservice,he said. Walbourne questioned whether taking out Section 186 would save the city money. He said he'd like to see the Citygate report first because it may have insights into what they need to know to make an informed decision. Dailey said he agreed the council should have full responsibility for the budget and that is what they were put there to do. Public safety plays an important role in attracting business, but so do school districts,parks, streets, and libraries in improving the quality of life. He said there is too much procedure in the Charter. He said he has not yet heard how removal of Section 186 would have a tremendously detrimental effect on public safety. This is focused around salaries,but when looks at the it from a management standpoint, there are other tentacles that extend Section 186 into other areas that were never anticipated when it was first adopted. He said the only way to get to a level playing ground is for there to be a clean removal of Section 186 and replacing it with collective bargaining. Savage said he is convinced that Section 186 has very little to do with the current financial woes of the city and may or may not have financial consequences. He said the city should be run effectively as a business with management control, a problem under Section 186. Section 186 does not just fix the salaries,but it has extensive detail on staffing hours and that kind of detail does not belong in the charter he said. He said that the committee had adopted the principle that the Charter should be flexible, and Section 186 does not offer that. He passed out some alternatives the committee could consider, in a document entitled Alternatives Concerning Section 186(attached). Those alternatives ranged from taking no action, deferring action until later, or recommending the council retain 186 with no change,to recommending adding a new section(187)to the Charter;to repealing it. Brown made a motion that the city council place the repeal of Section 186 before the voters on the November 2014 ballot. The motion was seconded by Baxter. 9 Walbourne said he didn't see why the committee couldn't wait until the Citygate report is complete. Craft said the first paragraph of Section 186 could be modified to meet the needs of the majority, rewording it to get the procedures out of the process and give the council and city manager the flexibility needed. He said he still was not leaning toward repeal. Craft suggested new wording: "There hereby established for the City of San Bernardino a basic standard for fixing salaries, classifications and working conditions of the employees of the city of San Bernardino. The Mayor, the City Manager and the Common Council will have the responsibility over these department heads."He said he would work on the language and provide it to Hanna to distribute to the committee in time for the next meeting. Dailey asked the city attorney how much the legal opinions bound to 186 are affected by tweaks in the language. Saenz said to the extent that a section is in the charter, it is subject to interpretation and reinterpretation and that the way to change that is to eliminate it or to try to redraft it in the clearest terms that are not subject to so many various interpretations. Walbourne asked if repealing Section 186 would save the city money. Parker said the constraining part of Section 186 is whether the city has an ability to contract for similar services and, as previously interpreted,the city does not. He said that, as example, if the city contracted with AMR for emergency medical services, it might not save money but there would be a freeing up of fire personnel to fight fires, which addresses the issue of risk management. He also said that he is constrained from asking for a proposal for fire suppression service from county fire or CalFire,based on interpretation of Section 183. Savage asked if the flexibility Parker said he needed would require repeal of both Section 186 and Section 183. Saenz said there may be other sections in Article 10 other than 186 that may need to be dealt with as well. Parker said that it was the staff's desire that all ambiguity be removed from the Charter so that no one has to refer to anyone's legal opinions. To that end,he suggested that the committee look at Charter Section 180 et. seq. to give management the greatest flexibility. Dailey asked if the city had been sued over collective bargaining and Parker said yes—most recently by fire fighters in connection with the unilateral take of benefits and requiring fire to pay a greater degree of their retirement costs. Fire personnel sued, claiming it was a violation of the Charter and won. The issue is currently tied up in the bankruptcy case. Cohn said that the charters of Anaheim and Riverside make no mention at all of police and fire services. He suggested that Article 10 could simply state that the provision of police, fire and emergency medical services should be determined by Mayor and Common Council. 10 Savage said Article 10 could be agendized for discussion at the next meeting. After further discussion about getting suggested verbiage from the City Attorney for replacement sections,Harrison called for the question. The committee voted 7-2,with Craft and Walbourne voting no, to recommend that the City Council place the repeal of Section 186 before the voters on the November 2014 ballot. The meeting adjourned at 8:45 p.m. The next meeting is set for 5:30 p.m. Tuesday, May 06, 2014 in the EDA board room. a 11 Fire Safety Salary/Benefit Annually Base Salary $11,482,260 Bilingual Pay $6,829 8%Admin Captain Pay $11,078 Lead Paramedic Pay $109,810 FF 11 Cert $17,452 Fire Officer Pay $132,031 Chief Officer $26,558 Arson Investigator $6,070 Haz Mat Specialist $5,312 Breathing Apparatus Pay $759 uniforms* $64,401 Pension/Retirement Benefit $3,121,199 1959 Survivors Benefit $6,240 Cafeteria/Health Benefit $1,218,588 Health Insurance Stipend $10,000 Medicare $219,144 Vacancies $1,212,305 Total Salary/Benefits $17,650,036 Information based on 127 employees 1%w/o benefits=$124,214 1%w/benefits=$176,475 * 1 shirt/2 pants/work boots FIRE SAFETY: Special Assignment Pau All employees assigned to the following duty shall receive special assignment pay at the rate of $50 per month. The number of employees eligible to receive such pay shall be determined by the City. Eligible personnel; 1. Shift Arson Investigators 2. Certified Hazardous Material Specialists 3. Certified Breathing Apparatus Technicians 4. FLSA Statistician The number of employees assigned to the positions at the time of the signing of the new MOU is: (9) Shift Arson Investigators; (12) Certified Hazardous Material Specialists; (9) Certified { Breathing Apparatus Technicians; (1) FLSA Statistician. Administrative Captain Assianment Any employees in the job classification of Fire Captain shall be entitled to compensation in the amount of eight percent(8%) over the assigned rate for his or her classification when permanently assigned by the Fire Chief to a forty-hour administrative assignment work week. Educational Incentive Pav All members shall be entitled to receive in addition to their regular salary and as may be appropriate, one of the levels of incentive pay as set forth below; A. $50 additional compensation per month shall be paid each member who has a Firefighter II Certificate issued by the State of California; or, B. $150 additional compensation per month shall be paid each member who has a Fire Officer Certificate issued by the State of California; or, C. $250 additional compensation per month shall be paid any member who has a Chief Officer Certificate issued by the State of California. Bilingual Pav Each full-time employee who meets the City's bilingual certification and eligibility requirements shall be compensated at the rate of$50/month. The City shall reserve the right to determine languages for which testing will be conducted. 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N3, GJ N i Ny,N A S;• NV{ i +1 N� N i S O� et ``i,1�#;I• t�" W a (t-,'',.' t{{i•:1a cs la'ri�'� jt fir R ...:I. ! > y., ri y Y I IW r. it u''i+ %'l'9 t >a'•' :•i '}Zt :tt F r•'}` ¢,;i, .r cY'k 0 OD A. �W p� � , Q F}>ic� i. � "•7"y' # ��1 r ,c (MIA) col 5a5't':;1' ({{'i11,r # i ' I-• t�:d� SI f Y� i CL ro �1} k Z EN ' y mow; NI t l � 1r'�-;r'+ DV1 W i } e i i fR', ibs Oo.WO 00: g at i t� { i� �ty+•8 r F ti I•':f'iI nty.a s,;7 +..... }':ail +.:.�:a .,iia {'.::��: ::xf; 7 Police Safety Salary/Benefit Annually Base Salary $21,932,484.00 Bilingual Pay ($50 mo.) $131800.00 Motor Officer Pay(Hazard)($50 mo.) $6,000.00 Post Basic ($200 mo.) $156,000.00 Post Advanced ($250 mo.) $327,000.00 Post Supervisory ($275 mo.) $79,200.00 Uniform Allowance $296,452.00 Pension/Retirement Benefit $6,117,528.00 Cafeteria/Health Benefit $2,216,286.00 Health Insurance Stipend $42,500.00 Medicare $340,452.00 Police Vacancies $1,740,641.00 Total Salary/Benefits $33,268,343.00 Information is based on 246 employees 1%w/o benefits= $230,986 I%w/benefits =$332,683 IY POLICE SAFETY: Peace Officer Standards Training(POST) All police officers shall be entitled to receive in addition to their regular salary and as may be appropriate, one of the levels of incentive payment as outlined below: A. $200 additional compensation per month shall be paid each police officer who has obtained a POST Intermediate Certificate; or, B. $250 additional compensation per month shall be paid each police officer who has obtained a POST Advanced Certificate; or, C. $275 additional compensation per month shall be paid to each police officer who has obtained a POST Supervisory Certificate. Bilingual Pay Each full-time employee who meets the City's certification and eligibility requirements shall be compensated at the rate of $50/month. The City shall reserve the right to determine languages for which testing will be conducted. Uniform Allowance Once each fiscal year, each employee in the bargaining unit shall receive an annual uniform allowance of$950 to be paid in a lump sum amount during the first pay period of March. New employees must wait until the first pay period of March to receive their annual uniform allowance. Health Insurance Stipend The City of San Bernardino agrees to provide full-time eligible employees who waive health benefits an annual"Health Insurance Waiver Stipend"of$2,500 each December 95'h a0 O c Sd n O o m +» ur cn rn S �� w +n en rn N N N N W W S0 �e W 44 bT /A - 0 F. 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(�y s I VA' ?r' ( ,CTi �I ze fi` ALTERNATIVES CONCERNING SECTION 186 • Take no action concerning 186 • Act to defer taking action on 186 until after Committee's initial report to the Council • Recommend that the Council retain section 186 without change. • Recommend to the Council that the existing language of 186 be retained,adding one or both of the following as section 187 under Article X of the Charter: • 187 The provisions of section 186 are all subject to the provisions of California Labor Law. • 187 Until such time as San Bernardino has a 20%reserve,all provisions of section 186 shall be suspended and the salaries of police, fire,and emergency safety personnel in shall be fixed by the Council by resolution after collective bargaining under California labor law as appropriate. • Recommend to the Council that section 186 be retained,but remove all provisions concerning details of overtime pay,work periods,work week,& special compensation, leaving these up to resolution by the Council following collective bargaining under California labor law as appropriate • Recommend to the Council that section 186 be replaced with a provision such as either of the following: • The salaries of police, fire,and emergency safety personnel in shall be equal to the arithmetic average of the monthly salaries,paid or approved for payment to local safety members of like or most nearly comparable positions of the police and fire (and/or public safety)departments of ten cities of California with populations between 100,000 and 250,000. These 10 cities shall be those remaining after the names of cities are stricken on an alternative basis by a representative of the city on one side and a representative of the employee organizations on the other. The details of this procedure and for any additional special salary shall be as fixed by the Council by resolution after collective bargaining under California labor law as appropriate. • The salaries of police,fire,and emergency safety personnel in shall be fixed by the Council by resolution after collective bargaining as appropriate under California labor law as appropriate. • Recommend to the Council that section 186 be repealed. 5/5/2014 Proposed Additions to San Bernardino Charter Reform Principles&Objectives 1. Flexibility. To the greatest degree possible,the City Manager&Council should have the flexibility to make decisions and to govern the City under the Charter. Removing excessive limitations on that flexibility should be opportunities to improve governance. 2. PRINCIPLES & STANDARDS. THE CHARTER SHOULD SET FORTH GUIDING PRINCIPLES AND STANDARDS,NOT DETAILED RULES AND PROCEDURES. 3. ENABLING. THE CHARTER SHOULD BE DESIGNED TO ENABLE THE CITY TO OPERATE IN AN EFFICIENT,BUSINESSLIKE MANNER. 4. Economy. The Charter should be as economical in wording as possible while keeping the meaning and legal parameters clear. 5. Future Orientation. The Charter should be worded so as to apply to future City administrations,not just to deal with current issues. 6. Contemporary Standards. Language, such as gender neutrality, should be in conformance with contemporary standards. 7. Transparency. The Charter should be clear to the well-informed layperson,not excessively legalistic. The Charter is to be a way that the public can understand how the City operates,and the powers and limitations of those who govern it. 8. Charter Reform Process. The Charter Review Committee working to advise the City Council should utilize the following principles: a. Input from those working within the City family should be sought out as those who work in city government have a unique perspective on the Charter. b. San Bernardino's Charter should be uniquely adapted for this City and it's needs. C. Charters of other Cities should be reviewed and taken into account. Other cities have weighed,considered and analyzed many of the same issues as those confronting San Bernardino. d. The Committee should seek wide and diverse input and evoke debate and welcome disagreement in its deliberations;however,it should attempt to obtain wide consensus for it's recommendations. Charter changes should be able to draw wider support from the community than is normally required to win an election. e. Ongoing,frequent,regular reviews of San Bernardino's Charter should be made to the end that it will be, and continue to be, an effective,well written, and well organized document. 5/y,/""f CONSTRUCTION AND INTERPRETATION (Add Section) The language contained in this Charter is intended to be permissive and enabling rather than restrictive or limiting, and shall be liberally and broadly construed in favor of the exercise by the City of its power to govern with respect to any matter which is a municipal affair. i 1 STATEMENT ON PRINCIPLES OF CHARTER REVIEW -REV. 1 2 3 We affirm that our city must provide the full array of services that make it a place 4 where all residents can experience and enjoy physical and emotional safety, 5 cultural and educational enrichment, recreational and entertainment opportunities. 6 We also affirm that our city must provide a climate for economic well-being and 7 growth which includes attracting new business and new residents. 8 9 To that end we affirm that our city must treat all of its residents and institutions 10 with fairness and equality. We place high value on the loyalty and service of all 11 city employees and believe that they must be treated fairly and equitably. 12 13 We firmly believe that for city employees to enjoy a sense of security in the 14 immediate and long-term future our city must emerge from bankruptcy as soon as 15 possible and restructure its fiscal position. Thus, no individual or employee 16 association or labor group should be accorded preferential treatment in the Charter 17 or in practice. 18 19 Rabbi Hillel Cohn 20 May 6, 2014 21 List of Some Section 186 Issues 5/3/2014 1. §186 assures the citizens of San Bernardino that safety employee salaries will not be lower than 10 similar sized cities. 2. The"average salary"certainty of§186 may assist the City in hiring and retaining quality safety employees and minimize San Bernardino being just a training ground for safety employees who then go to other cities. 3. §186 may help keep"politics"out of safety employee salary determinations. 4. Any repeal or substantial amendment of section 186 may have the following consequences: a. Major battle by safety employees to its repeal being adopted by the public; b. Adverse consequences on the moral of safety employees;&/or C. Affirmative consequences on the moral of other city employees. 5. §186 significantly decreases the amount of flexibility the Mayor,City Manager&Council would otherwise have to make decisions and govern the City under the Charter. This conflicts with the Charter Reform Principles&Objectives this Committee established, 6. §186 may require payment of salaries when the City has insufficient funds to do so taking into consideration all of the other needs of the City;however,the actual dollar impact of§186 on the City's finances may not have been too great over the past few years. (Fire budget has increased from 22.12%of total city budget in 2009 to 25.47%in 2014;and total public safety expenditures have increased from 64%of the total in 1994/95 to 68%in 2013/14 -which figures appear to exclude what would have been paid to PERS in 2012/13 but for SB stopping paing PERS for that year because of it's financial situation. 7. §186 sets forth in great detail rules and procedures relative to safety employees which no other City in California has in it's charter. These rules&procedures can only be changed by a vote of the public. 8. No other California city has a charter provision which sets by formula, or manner of calculation, the salaries of it's safety employees. The only California city charters which have any specific public safety employee salary standards are as follows: (a) Stockton's charter requires that firefighters starting salaries shall be at the step higher than that received from the fire district. (I'm not sure what that means.) (b)Fresno's charter requires that city employees be paid not less than the prevailing wage paid in private employment in Fresno. 9. Collective bargaining i the roceddure used for determining safety employees salaries in all g g s p other cities in California. *,4( � �IS, D Correspondence to Charter Committee O F T ',. CRITICAL THINKING C O N S U I TING Ai-THE CRITICAL TIME"' a May 12, 2014 City of San Bernardino, California Honorable Mayor Carey Davis City Manager Allen Parker City Attorney Gary Saenz Charter Review Committee members (Delivered through the City Clerk, Gigi Hanna) Re: Follow up on a Request from the Charter Review Committee Chairperson for Additional Comments Regarding the San Bernardino City Charter reform We understand that the Charter Review Committee, through its Chairperson, has requested further input from FTI Consulting and our clients regarding City Charter revisions. Our comments are summarized below. • Section 186: We have been informed that the Charter Review Committee, at its May 6, 2014 meeting, voted to recommend to the City Council that Section 186 of the City Charter be eliminated. We support this recommendation. • Water department: As our May 2, 2014 letter states, we believe that the City Charter currently creates restrictions on any potential outsourcing, privatizing or public-private ownership or management of the Water Department. If the City concurs that revisions to the Charter are warranted in this area,the City Attorney is best suited to draft specific language changes. We further encourage the City to start exploring alternative ownership and/or management structures for the Water Department now, as it develops its long-term financial strategy and a bankruptcy exit plan. We appreciate this opportunity to provide further feedback. Sincerely— FTI Consulting, Inc. About FTI Consulting FTI Consulting,Inc,is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal,regulatory and economic environment. FTI Capital Advisors conducts business as a registered municipal advisor under the name Public Sector Solutions.www.fticonsulting.com. Proposed Charter Recommendations for 5/19/14 The following items have been approved by the Charter Review Committee and are recommended for Mayor and Common Council review and adoption on May 19, 2014: 4- Amend Article III, Section 40, by adding subsection (bb): (bb) Construction and Interpretation. The language contained in this Charter is intended to be permissive and enabling rather than restrictive or limiting, and shall be liberally and broadly construed in favor of the exercise by the City of its power to govern with respect to any matter which is a municipal affair. Notwithstanding any other provision in this Charter, the Mayor and Common Council may provide by ordinance or resolution the form of organization through which the conduct and operation of the functions of the City are to be administered, and/or may consolidate and/or reorganize departments, divisions, offices and agencies provided that no office headed by an elected officer shall be consolidated with or subordinated to any other office, department, division or agency. Any combination of duly authorized duties, powers and functions which, in the judgment of the Mayor and Common Council, will provide the most efficient and economical service possible, consistent with the public interest and in keeping with accepted principles of municipal administration, may be authorized by ordinance. I Amend Article VI1 Section 120, to read as follows: Section 120. Initiative, Referendum and Recall. There are hereby reserved to the electors of the City the powers of the initiative and referendum and of the recall of municipal elective officers. The provisions of the Elections Code of the State of California, as the same now exist or hereafter may be amended, governing the initiative and referendum and the recall of municipal officers, shall apply to the use thereof in the City so far as such provisions of the Elections Code are not in conflict with the provisions of this Charter. 4 Repeal Article VI, Section 121 (Referendum) 4- Repeal Article VI, Section 122 (Recall) A fl-t kkA - --Repeal Article X, Section 186 (Police & Fire Salaries) 4 Repeal Article XI (School Districts) C��� C 7 4- Amend Article XIII, Section 254 (Civil Service Discharge or Reduction of Compensation) Section 254. Discharge or Reduction of Compensation. No employee in the classified service shall be suspended, discharged or reduced in classification for disciplinary reasons until the employee has been presented with the reasons for such action specifically stated in writing. The reason for such discharge or reduction and any reply thereto by the employee, shall be filed in writing with the Civil Service Board. Committee further recommends to Council that this City Charter Committee shall be ongoing, and that ongoing Charter review shall become policy. -4- Committee further recommends to Council to adopt the San Bernardino Charter Reform Principles & Objectives (4129114 and 5/6114) to be applied for future Charter review. 4/29/14: 1. Flexibility. To the greatest degree possible, the Mayor, Council, and City Manager should have the flexibility to make decisions and to govern the City under the Charter. Removing excessive limitations on that flexibility should be opportunities to improve governance. 2. Economy. The Charter should be as economical in wording as possible while keeping the meaning and legal parameters clear. 3. Future Orientation. The Charter should be worded so as to apply to future City administrations, not just to deal with current issues. 4. Contemporary Standards. Language, such as gender neutrality, should be in conformance with contemporary standards. 5. Transparency. The Charter should be clear to the well-informed layperson, not excessively legalistic. The Charter is to be a way that the public can understand how the City operates, and the powers and limitations of those who govern it. 6. Charter Reform Process. The Charter Review Committee working to advise the City Council should utilize the following principles: 6.1 Input from those working within the City family should be sought out as those who work in city government have a unique perspective on the Charter. b I i 6.2 San Bernardino's Charter should be uniquely adapted for this City and 1 its needs. 6.3 Charters of other cities should be reviewed and taken into account. Other cities have weighed, considered and analyzed many of the same issues as those confronting San Bernardino. 6.4 The Committee should seek wide and diverse input and evoke debate and welcome disagreement in its deliberations; however, it should attempt to obtain e wide able to its recommendations. Charter changes should b draw wider support from the community than is normally required to win an election. 6.5 Ongoing, frequent, regulary reviews of San Bernardino's Charter should be made to the end that it will document continue to be, an effective, well-written, and well-organs 5/6/14: 7. Principles & Standards. The Charter should set forth guiding principles and standards, not detailed rules and pro 8. Enabling. The Charter should be designed to enable the City to operate in an efficient, business-like manner. Rough draft comments/ 5/13/14 Two weeks ago we took a stab at wanting to make the city a general law city while putting the mayor in a weaker position of authority and a city manger as the one with much control over the city. While we all agree that the city needs a professional person to manage the day-to-day operations of the city there was concerns that to reduce the authority or responsibility of the mayor might not be the way to go. This forced me to re-read and re-read those sections; Article 3 section 40 thru 52; article 5 section 100 that spoke to power and authority of the mayor, city council and city manager. It is clear that the council makes laws by resolution and ordinance that makes the city operate, which is put into the responsibility of the city manager and mayor. The council members power resides in their collective council meeting body to legislate and approve every service we provide in the city. Individual council members have no authority per-se unless they can influence at least 3 or 4 other council members to see issues their way. Any actions by a lone operating council member only create chaos and confusion. Where there are clear reporting lines by department heads there is less confusion than others such as police, fire, library, water, civil service and maybe another one or two. It is clear that the mayor as the CEO and chief spokesperson for the city with general supervision responsibilities, is voted on by all citizens in the city who gives it that authority to veto some actions of the council, unless 2/3 of the council says no. The mayor has to represent the city on several government agency boards and commissions in the region, which gives her/him a regional perspective, and leadership in the region of where the city should be headed. I think to reduce any authority would weaken its status in the region. This is not to minimize the councilmembers role or leadership from their ward, which is one seventh of the city. That is where the strong City Manager, under general supervision of the mayor, comes into play with the council having consenting and approval on hiring, discipline, compensation, suspension or termination in accordance with all employment laws. Article III Section 40 (s) is very confusing in regards to who has the authority to hire and remove employees from positions. All of these employees should be reporting to the city manager, which would help reduce misunderstandings and give clear areas of responsibility. The council should retain consenting approval over all hires and terminations. The 2) appeal process would still reside with the civil service rules and regulations and other employment laws. Section 50 the mayor is the CEO with general supervision over the City Manager who would have responsibility and authority over all departments except the mayor, council, city attorney, city clerk and treasurer but does coordinate with them for the efficient operation of the city with budgetary issues in their department. The mayor should be able to suspend and discharge with just cause the City Manager with the consent of the council in accordance with all applicable and prevalent employment laws. Article 5 Section 100 should be that the City Manager shall supervise all department heads with the exception of the City Attorney, City Clerk, and Treasurer. My aim with this concern is to keep the current general authority of the mayor while changing the reporting relationships of all department heads to be under the City Manager, who will have the authority and responsibility to manage the day to day operations of the city without interference of the mayor or individual council members but with consenting authority of the council on important public issues which is currently in the charter. Now I don't know how that can be worded and placed on the ballot but that is one way I see us solving this complicated management problem that currently plagues the city. Modified Section 180 and 186 M Craft 5.13.14 Modified Section 180. Powers of Mayor and Common Council. (With clarification of section 52) The Mayor shall be considered the chief executive officer in managing the police and fire departments. The City Manager shall be the immediate supervisor of the Chief of Police and the Chief of the Fire Department. Neither the Mayor nor the City Manager shall interfere or attempt to interfere with the discharge of those duties of the Police or Fire Chief(s). The Mayor and Common Council shall have power upon the recommendation of the City Manager to fix and prescribe the salaries, qualifications, duties, rank, badges of office and uniforms of the officers, members and employees of said departments; to prescribe rules and regulations for the organization, government and discipline of the same, and to prescribe penalties for violations thereof; subject to the civil service provisions of this Charter. The Mayor shall determine any and all complaints of misconduct, inefficiency or violation of rules or other charges against the chiefs of said departments, and shall take such action thereon as shall be most conducive to the maintenance and discipline and efficiency of such departments, including suspending and or dismissing, for cause, the Chief of Police and/or the Chief of the Fire Department subject to the laws of the State of California. Ae 3 r Modified Section 180 and 186 M Craft 5.13.14 (The following is intended to tie increases in public safety to increases in pay and benefits to the city's employees and public safety personnel.) Modification/blending of 180 & 186 Authorization: Wages, Benefits, Safe Working Conditions: The citizens of the City of San Bernardino authorize the Mayor, Common Council, and City Manager, to provide competitive salaries, benefits, and safe working conditions for all employees of the City of San Bernardino. The Mayor and the Common Council will approve a budget for and have department heads distribute those funds to their department's employees as merited by the employees. The Chief of Police and Fire Chief will also disseminate their budgets to their personnel based on merit and measurable accomplishment(s). The following two paragraphs are intended to formalize within the charter to prevent public officials duping the citizens of San Bernardino in a fashion similar to Bell, California. The Mayor and City Council shall review, annually, the pay and benefits of the City Manager, City Clerk, and others who report directly to them. They shall gauge the pay and benefits through analysis of city's with comparable median income as publish by the State of California. The City Manager shall review, annually, the pay and benefits of the city's department heads, fire chief, and police chief by surveying liked sized median income cities to ensure San Bernardino is attracting, and /or retaining the best talent available for the city. Safe Community Expectation: The citizens of San Bernardino expect their elected leaders and City Manager to make every reasonable effort to ensure a safe community. As such, it is expected by the citizens that the police and fire departments will be staffed at levels sufficient to minimize 'backfill' and 'overtime' premium pay. As the city becomes safer, and revenues increase, all city employees should be compensated accordingly. Modified Section 180 and 186 M Craft 5.13.14 Data: Data to be utilized for purposes of negotiation should include cities of comparable median income as well as crime rate as San Bernardino, as published by the State of California. Good Faith: The city's negotiator and employee representatives will negotiate wages and benefits in good faith. The city's negotiator, city manager, department heads, police chief, or fire chief shall not withhold pay, lockout, or prevent employees from providing their services to the citizens, nor will the employees strike, have work slow downs, or have blue flu preventing their skills and services from being presented to citizens. Reporting: The citizens of San Bernardino expect the Mayor, City Council, and City Manager to receive quarterly budgetary reports from the department heads, chief of police and fire chief, in open session, during regularly scheduled city council meetings. The Mayor, City Council, and City Manager must notice and question budgetary discrepancies and hold in high regard any savings within a department's budget. Department heads, Chief of Police and Fire Chief will be presented in a rotating order at each council meeting while the council is in open session. Failure to receive quarterly reports shall result in a penalty to that department's budget. Penalty for Budget Over Run: When an annual budget over run is unjustifiable, that department will receive that percentage less in the following year's budget. Modified Section 180 and 186 M Craft 5.13.14 As written: Section 180. Powers of Mayor and Common Council. The police and fire departments shall be under the general supervision of the Mayor. The City Manager shall be the immediate supervisor of the Chief of Police and the Chief of the Fire Department. Neither the Mayor nor the City Manager shall interfere or attempt to interfere with the discharge of those duties of the Police or Fire Chief(s) the performance of which are required by law. The Mayor and Common Council shall have power upon the recommendation of the City Manager to fix and prescribe the salaries, qualifications, duties, rank, badges of office and uniforms of the officers, members and employees of said departments; to prescribe rules and regulations for the organization, government and discipline of the same, and to prescribe penalties for violations thereof; subject to the civil service provisions of this Charter. The Mayor shall determine any and all complaints of misconduct, inefficiency or violation of rules or other charges against the chiefs of said departments, and shall take such action thereon as shall be most conducive to the maintenance and discipline and efficiency of such departments, including suspending and or dismissing, for cause, the Chief of Police and/or the Chief of the Fire Department subject to the laws of the State of California. (City Attorney Opinion No. 91-2; City Attorney Opinion No. 90-25) ® Notes Re Agenda for Meeting Six 2. See 5/6/2014 Proposed Additions to the San Bernardino Charter Reform Principles & Objectives. [A copy appears at the end of these notes which includes these additions.] 3a. Michael Craft has indicated he has some alternative language to Section 186 he'd like the Committee to consider. I also have provided suggested replacement language in a document I passed out at the last meeting. I have modified it somewhat and suggest the following for consideration: Police, fire and emergency safety personnel shall be paid fair and reasonable compensation commensurate with compensation for similar personnel at other cities of similar size and economies. This compensation shall be fixed by the Council by resolution after collective bargaining as appropriate under California Labor Law as appropriate. [City Attorney's office should do final wordsmithing of this.] 3b. Discussion took place at the Committee's last meeting concerning review of all of Article X for possible recommended revisions and/or repeal. The City Attorney and/or Manager were going to present input concerning this. 3c. At previous meetings, the Water Department has presented a request that this Committee consider Charter modifications which would enable them to manage the sewer collection system and have the power to set rates for both sewer treatment and collection. Subsequently we were told there may be no need for any Charter modification for this to happen. At our last meeting, we received a Letter from FTI Consulting, Inc. requesting that San Bernardino's Charter be revised so as not to restrict the ability of the City to restructure the water department. Additional information is needed from the Water Department, the City Manager, the City Attorney, and/or FTI Consulting as to what Charter language changes are being suggested. 4. On the following page of these Notes I have listed under A the Charter Change items the Committee has agreed so far to recommend to the City Council. Any additions or modifications the Committee may determine shall be added to and/or substituted as appropriate. All language of these recommended Charter changes is expected to be reviewed by the City Attorney and revised in such manner as he may deem appropriate. The Committee may want to consider presenting rationale to back up each of its recommendations as well as presenting minority positions of members of the Committee as to the repeal of§186. 5. Under B on the following page of these Notes is the Committee's recommendation for the Council's adoption of an ongoing Charter Review process. Recommendations need to be developed concerning the process of ongoing Charter Review. The Committee also needs to develop recommendations for frequency of meetings, dates&times of meetings, the type of Charter Reform Consultant desired, the constituency of Committee etc. t RECOMMENDATIONS TO CITY COUNCIL A. Recommend that the following Charter Changes be put to a vote of the citizens of San Bernardino. Possibly packaging the 1St 4 items for one vote and the last(concerning §186) for a separate vote. New §.The language of this Charter is intended to be permissive and enabling rather than restrictive or limiting, and shall be liberally and broadly construed in favor of the exercise by the City of its power to govern with respect to any matter which is a municipal affair. Article XI Remove this Article, Titled School Districts, from the Charter. §254 Discharge or Reduction of Compensation. No employee in the classified service shall be suspended, discharged or reduced in classification for disciplinary reasons until the employee has been presented with the reasons for such action specifically stated in writing with the Civil Service Board. [replacing previous §] Article VII Replace all §§ (120 - 123) with the following: §120 There are hereby reserved to the electors of the City the powers of the initiative and referendum and of the recall of municipal elective officers. The provisions of the Elections Code of the State of California, as the same now exist or hereafter may be amended, governing the initiative and referendum and the recall of municipal officers, shall apply to the use thereof in the City so far as such provisions of the Elections Code are not in conflict with the provisions of this Charter. §186 Repealed. B. Establish a formal Policy of regular periodic ongoing reviews of the City Charter and a continuous committee to deal with this process and make recommendations to the Council. Adopt the proposed Principles & Objective set forth on the following page for purposes of Charter review. ti 5/6/2014 Proposed Additions to 0 San Bernardino Charter Reform Principles& Objectives 1. Flexibility. To the greatest degree possible,the City Manager& Council should have the flexibility to make decisions and to govern the City under the Charter. Removing excessive limitations on that flexibility should be opportunities to improve governance. 2. PRINCIPLES & STANDARDS. THE CHARTER SHOULD SET FORTH GUIDING PRINCIPLES AND STANDARDS,NOT DETAILED RULES AND PROCEDURES. 3. ENABLING. THE CHARTER SHOULD BE DESIGNED TO ENABLE THE CITY TO OPERATE IN AN EFFICIENT, BUSINESSLIKE MANNER. 4. Economy. The Charter should be as economical in wording as possible while keeping the meaning and legal parameters clear. 5. Future Orientation. The Charter should be worded so as to apply to future City administrations, not just to deal with current issues. 10 6. Contemporary Standards. Language, such as gender neutrality, should be in conformance with contemporary standards. 7. Transparency. The Charter should be clear to the well-informed layperson,not excessively legalistic. The Charter is to be a way that the public can understand how the City operates, and the powers and limitations of those who govern it. 8. Charter Reform Process. The Charter Review Committee working to advise the City Council should utilize the following principles: a. Input from those working within the City family should be sought out as those who work in city government have a unique perspective on the Charter. b. San Bernardino's Charter should be uniquely adapted for this City and it's needs. C. Charters of other Cities should be reviewed and taken into account. Other cities have weighed, considered and analyzed many of the same issues as those confronting San Bernardino. d. The Committee should seek wide and diverse input and evoke debate and welcome disagreement in its deliberations; however, it should attempt to obtain wide consensus for it's recommendations. Charter changes should be able to draw wider support from the community than is normally required to win an election. e. Ongoing, frequent,regular reviews of San Bernardino's Charter should be made to the end that it will be, and continue to be, an effective,well written, and well organized document. 'I jf l [ May 13, 2014 To Chairman Phil Savage, Committee Members, Guests, and Viewers: This is my opinion that I want the Committee and the public to hear. Having been in business for over 40 years, the business environment in San Bernardino is the worst that it has been in the 24 years that I have been here. (Please see the "Rose Report" attached.) The three items I wish to address are as follows: First: I have looked at the decision that this committee has made to repeal Section 186. It has been stated that the public service employees get about 70% of the City's budget. That may be true. But the City budget has been going down over the past 6 years. The wages of our public service employees have been staying about the same. The City has had a decrease of about 25% of income revenue over the last 5 years. This is what has increased the percentage of the public service employee's part of the budget. (See attached Illustrations labeled "D-6" and "E-6", extracted from the city's web site.) The income revenues of the City have decreased drastically. The police and fire employees have kicked back most of the increases over the last 4 years. They have worked with the city. This is like a household that has two people bringing in income and one gets laid off. The income decreases but the bills stay the same. The house payment, utilities, and food costs stay the same for the two people, so they have to adjust their budget. If the house payment is 40% of the old income and now it is 75% of the income with Unemployment Benefits, you don't blame the bank for how high the payment is, you try to get more income. You don't stop payments to the bank. You try to work with the bank to maybe change your loan payment. To blame the safety employees for the City's problems is like blaming your partner for losing his or her job. Second: I agree with Phil that we recommend to the City Council that they make the changes separate issues on the ballot. Or four issues can be lumped together, but keep the 186 issue by itself Third: I feel that we need to change Section 24 (Bucket List Item #13). All the charters that I have looked at and are successful have a part-time or "weak" Mayor and a full-time or "strong" City Manager. It was on our "now" bucket list. Our past full-time Mayor and full-time City Manager seemed to butt heads on many issues and ultimately nothing was really accomplished. The economy and the past Mayor have driven off jobs and businesses. Just drive down E street and look at all the empty business buildings. To make up for the difference in the budget and the actual income, we need to make the City "safer" for businesses and people to move here. Not cheaper houses, that stand empty but a better business climate. Although this is not a Charter issue, the Mayor being part-time or a"weak" Mayor is a charter issue and it will save the city money. We need to work on this one. I submit this statement to Gigi Hanna, City Clerk, to enter into the minutes of the meeting. Gary Walbourne Committee Member Budget Summary - General Fund Budget Overview FY 2007-2008 FY 2008-2009 FY 2009-2010 FY 2010-2011 FY 2011-2012 Actual Actual Actual Estimated Adopted 'I'Beginnint,Fund Balance 16,159,200 9,810,900 3,670,800 1,770,400 $2,085,400 e , Revenue A! 29,365,900 31,130,000 28,021,700 27,740,000 $27,375,000 � s District max.,.. �.n 25,631,600 31,127,500 nh'i.y User TPA", 22,700,000 22,500,000 -" "?sec 76,452,200 70,146,400 62,421,300 6,956,000 6,476,300 -# eiist-? Permit 9,644,500 9,508,500 9,160,500 7,812,000 7,832,700 1,335,000 1,500,000 2,378,000 3,493,600 2,884,000 1,121,600 1,020,000 1,053,400 3,195,000 837,000 6,994,800 6,883,300 7,466,400 5,349,100 3,708,900 5,692,100 6,523,700 7,182,400 5,918,000 5,940,300 4,592,600 4,432,100 4,958,200 8,916,900 5,684,200 Total Revenues $142,483,900 $131,144,000 $122,641,900 $117,712,200 $114,365,900 Slate Prop.IA Loan $2,938,100 Loan Proceeds froin i $1,308,700 fers i 2,910,000 2,910,000 3,620,000 3,620,000 $3,620,000 # 1,550,000 3,776,700 1,490,000 1,500,000 $1,400,000 Cent Sales& Read Tax 250,000 250,000 750,000 1,350,000 $1,350,000 Ira"ai Development Fund 357;000 357,000 457,000 357,000 $357,000 e Safety Systems 60,000 60,000 fPrm Drain Construction Fund 132,700 132,700 132,700 132,700 $132,700 fuse fund 2,682,300 2,682,300 2,712,300 5,251,700 $3,721,800 'er Line Construction 225.000 225,000 225,000 225,000 $225,000 1.:1fle Maintenance 250.000 250,000 250,000 380,000 $1,510,900 1d alt°e ud 350..000 1-ty Wide NP 8,000 - 0-1033-Fire Station 115,000 556,200 535,000 562,600 $573,700 uaiit-y-AB 2766 Fund 140,000 140,000 140,000 70,000 $70,000 r $9,030,000 $11,339,900 $10,312,000 $13,449,000 $12,961,100 $160,393,900 $152,294,300 $140,871,700 $132,931,600 $129,412,400 D-6 4Wi�-i'l1YiYfY; CITY OF SAN BERNARDINO BUDGET VS.ACTUAL REVENUES FISCAL YEARS 2001-2010 ! j i � U0.000.009 •* 139.004000 i 126,000.000 119,000,000 4' i 112,000,000 i i 1 1os.000aoo 3A1�;fY I 98,000,OOO ; fJI 91,000A00 84,000,000 .S•i;- f 77,00%000 l .:_ _ - i AchW FY 00-01 Actual FY 01-02 Actual FY 02-03 Mud 03-06 AMM FV 0405 Mw FV 05.06 Ad d FV 6-07 AO.A FY 07-00 AMM I'V 06-09 AMW Ff W f i o BUOOEt i i siACFUAL E-6 w ry.ww�wna-■��sus.vs,ro•v. v.,. .y ...�..................� ..........,..... ...,..._._-....__.__._ _. ��-��..._—__—' --------'----- ..- cme.edu The Rose Report News and Analysis in State and Local Government s l9r bw* o Wearch hbe land hill lenm { 4iltrtdpfe � ttlaorwfr Calabasas Popular Pasts y��.�� tE,•y E Home The Rose Report 1Mittie Senior Staff DrPAWY El i Cost Rating c NUM, an Seach: A o- n. .tt C LJ LO Cos[. i} T..Etie, ��v Rose Institute on i1•.•erilpc Crntl`'•t41 tak Re M,arsan er rocp CastC>STS) °ery Koh Cast;33335} € Follow ntlser AL—J - Tweets ^`11 Rose Institute 2013 Kosmont-Rose Cost of Doing Business SuRtey Released Checkout the Rose Report for two new articles from the Inland February 21,2014 Audrey Breitwieser 2 Corrments Uncategonzed Empire outlook on prison realignment and water policy: reseinstitute.orctthe-ros c4eoor. On February 7, 2014,the Rose Institute released the 19th annual Kosmont-Rose Institute Cost of Doing Business Survey.The Rose Institute,in collaboration with Los Angeles-based Kosmont Companies,gathers Rose Instkute business fees and a variety of tax rates from 305 western cities,focusing on states where business relocation Cr is most active.The 2013 edition of the Survey takes a close look at the cost of doing business in California as Charlotte Bailey presents on the well as eight other states that many companies view as possible alternatives to California(Arizona,Colorado, Mller-Rose Initiative Database! pic.it•J 111c r.com;Kuka?p;:F°,P Nevada, New Mexico, Oregon,Texas. Utah,and 1M2shington). Rankings for each city are divided into one of five "Cost Ratings"groups:Very Low Cost($), Low Cost($$),Average Cost($$$), High Cost($$$$), and Very High Cost($$$$$). The Kosmont team would like to thank all of the students who worked diligently on data collection, marketing, blogging,data analysis,and publishing for the 2013 Survey. The 2012 new hires compiled all data,the 2013 new hires updated the city summaries and wrote ssctions of the executive summary,the tech team updated maps,and manager Marina Giloi and associate manager Brian Eckhardt administered the entire operation. It takes the entire Rose team to put together this cornprehenske summary each year. Highlights from the 2013 Survey Most Expensive Cities California dominates the list of the most expensive cities,with a total of twelve cities–nine in Southern California and three in the San Francisco Bay Area. Los Angeles and the San Francisco Bay Area are the two most expensive metropolitan areas in the western United States. Eight out of the twenty most expensive western cities are in Los Angeles County: Bell,Beverly Hills, Compton,CuMr City, El Segundo, Inglewood, Los Angeles,and Santa Monica. http://roseinstitute.org/kosmont-release-2013/ May 13,2014 2013 Kosm� } t + t°es �eC2H 'he Rose Institute o State and Local Gov...Page 2 of . 60tiarUe lextexpeislecl0et, b Callon ,moopalcaid Rtssbl Vep, a I0raedlkS0111en Callon la. The Two my mD it Etpen d\e al e s In ilia'M it[n 2013 All 131e a VeI If H gl Cwt 45M PaUFg ftiFl.ra\(:Ha 11 � \YA . COJII'TOY _ f C3 �cT LSTFR C I_C (EL 5EU-NDO f,C.► ;cLr-%D.XLE i Az__ TALE\1'OOD t•1• IDS CA _ {3 IPHOE.�2C _ I_AZ �——% iPORTLII'D OR SvN DER_C.lRDNO jg.�\1 R.11fiIKCO a.C::► S.AN'TA\1O\IC:A _1 CA �K�FAI`Ii.F i %VA I' A00% A ! %14 r7C'�_O' �___-_-_ The Twenty lasitapend\e alaslnttle W61tin2011 All iaw a b'eK Low Chat(}PaOsg ABILENE iCORF 5 CHRISTI IS DAJ.L_%5 IY,. E'CCL�Y_ !DR Et'ERETT ,rORT WORTH TTX 'C:RE:SItA\i T 4)R I HOI-10 ON 1X 4 L.4,115 VEGAS. 1iI55I0113F.1t1 C ]IOORP�7t>r 'ut .. UT rPL1�tf 7N SPARKS NV Y,ah11,13 1\'A—� Caltaet: Larry Kxmoit PleskeitaaC.EE"J,F1xmoltoompaits,¢13)507-9000 a3rk1 Ht 1 VJDI,Fe low,Rose hitlnt?gr510 aid Local Gave n me It @ORj jr-1.61tB for AxklOOSal Caton Is GIB+Clads()f Col IV)Coitact:Matt 0011Ft M VIES 27 t-M Formoe htmmatbi abottlie Flow itstlhe orlaamottCanpaies,phase uklt lie lrrespecllte mix Iles;at ose Isstld ie Ag aid kmm oltmm,or call QM 9!1-8159.Tb p1 rciase lie Si eey.pease email at oroe i firm http://roseinstitute.org/kosmont-relea... May 13, 201 The safety of people in the City is a highest priority of it's government. Police, fire and emergency safety personnel shall be paid fair and reasonable compensation commensurate with compensation for similar personnel at other cities of similar size and economies. This compensation shall be fixed by the Council by resolution after collective bargaining as appropriate under California Labor Law as appropriate. [City Attorney's office should do final wordsmithing of this.]