Loading...
HomeMy WebLinkAbout06.A- City Manager 6.A RESOLUTION (ID # 3853) DOC ID: 3853 CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Information/Report From: Allen Parker M/CC Meeting Date: 05/18/2015 Prepared by: Allen Parker, (909) 384- 5122 Dept: City Manager Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the Implementation of the City's Fiscal Recovery Plan, the Filing of the Chapter 9 Plan of Adjustment and Disclosure Statement, and the Filing of Related Documents (#3853) Current Business Registration Certificate: Not Applicable Financial Impact: Motion: Adopt the Resolution. Please see Plan attached. City Attorney Review: Supporting Documents: San Bernardino PlanofRecovery (PDF) Plan of Adjustment Resolution (DOC) Updated: 5/14/2015 by Jolena E. Grider Packet Pg. 1270 6.A.a Allen Parker, � 300North"D"Sheet San Bernardino,CA 92418-0001 (909)384-512:CITY OF SAN BERNARDINO � CITY MANAGER'S OFFICE TO: Mayor and Common Council FROM: Allen Parker,City Manager Gary Saenz,City Attorney SUBJECT: Recovery Plan in Support of Plan of Adjustment for Submittal to Bankruptcy Court DATE: May 12, 2015 c v E r 3 Recommendations: a 1. Approve and adopt the Preliminary Strategic Plan Interim Report dated May 2015 and o attached to the Recovery Plan in Support of the Plan of Adjustment as Attachment II and a approve and adopt the Recovery Plan in Support of the Plan of Adjustment, in ° substantially the form attached. LO 2. Adopt the attached Resolution approving the Recovery Plan in Support of the Plan of M Adjustment and authorizing the City Attorney to file the Plan of Adjustment and �. Disclosure Statement, along with any supporting documents, as they may be amended, o with the Bankruptcy Court. Enclosed with this memo is the Recovery Plan in Support of the Plan of Adjustment.This along with the Plan of Adjustment and Disclosure Statement form the basis,or roadmap,for San Bernardino's a exit from bankruptcy and fiscal recovery.As you know the City has been given a deadline of May 30 c to file the Plan of Adjustment with the Court,the foundation of which is the Recovery Plan. Before filing the Plan of Adjustment and Disclosure Statement,the Recovery Plan must be approved by the c Mayor and Common Council.The Recovery Plan has been prepared by our bankruptcy team m composed of City leadership,expert consultants and bankruptcy counsel. The Recovery Plan's terms make clear that the City needs to streamline governance and operations r_ and move into the mainstream of modern organization and service delivery for a city of our size. E The City needs to undertake dozens of initiatives designed to reduce expenditures and generate revenues. For example we need to look at contracting solid waste,fire and other services.Other Q cities have saved money,while still delivering acceptable service levels,by adopting alternative service delivery approaches such as using regionalization and contracting to reduce costs, -and the City needs to follow this lead. Unfortunately even with improved operating results and new revenues the City will not be able to pay all of its obligations.Two large obligations which will be significantly impaired under the Recovery Plan would be the City's pension obligation bonds and medical coverage for retirees. In both cases the City's ability to satisfy these unsecured creditors is severely constrained.As the Recovery Plan makes clear,our first priority has to be the delivery of adequate municipal services. The pain will be shared among all stakeholders; employees,retirees,citizens (in the form of impaired service levels until the City can regain its footing) and capital market creditors.Only by DOCS SM/3015870v2/200430-0003 Packet Pg. 1271 s undertaking the difficult process of refashioning the City into a modern municipal corporation can we be successful in creating a solvent future. The Resolution authorizes the implementation of the actions proposed in the Recovery Plan-and the filing of the Plan of Adjustment and Disclosure Statement in compliance with the Bankruptcy Court-mandated filing deadline of May 30th. The City cannot advocate for the Plan of Adjustment except pursuant to a court-approved disclosure statement. It is therefore important to recognize that the Recovery Plan,and any description of the Plan of Adjustment in the Recovery Plan,is NOT A SOLICITATION FOR A VOTE ON THE PLAN OR APROVAL OF THIS PLAN. c Our team looks forward to working with the Common Council on the difficult and unavoidable issues that will be addressed in the Recovery Plan and the Plan of Adjustment. y Q 0 c a co LO Go M L 0 _ V NN� Gl� 0 r_ a 0 c L (Q L d m d E s ca w Q DO C S S M/3 015 8 70v2/20043 0-0003 Packet.Pg. 1272' Allen Parker,City Manager 300 North"D"Stree San Bernardino,CA 91418-000, (909)384-512: CITY OF SAN BERNARDINO 10' CITY MANAGER'S OFFICE TO: Mayor and Common Council FROM: Allen Parker,City Manager SUBJECT: Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court DATE: May 18,2015 N 7 .a a 0 0 o. Recommendation M LO Adopt this Recovery Plan for the City and the attached Resolution approving the bankruptcy Plan M of Adjustment and disclosure statement and authorizing the City Attorney and City Manager to file , both with the court along with any amendments. '00 0 Executive Summary o _ This report describes the City's bankruptcy Recovery Plan(Plan) as well as other information a underlying the City's approach and basis for the City's Plan of Adjustment and disclosure 0 statement. It explains the City's overall fiscal planning which provides the foundation for the Plan of Adjustment, including the treatment of obligations in the Plan of Adjustment. c d m This report also describes the past practices and history of the City prior to the adoption of the Operating Practices for Good Government(OPGG), an interim operating agreement signed by the N s.: Mayor, City Council, City Attorney and City Manager on April 6, 2015. The adoption of the OPGG is a significant step forward for the City. This was done based upon the recommendation of E the Strategic Planning Core Team(Core Team), a group of distinguished community residents, r asked by the Mayor and Common Council to help the City chart a plan for the future. The Core Team, along with municipal government experts hired by the City to assist in preparation of this plan,believe that until fundamental government and management issues fully explained in this report are resolved, it will be difficult for the City to operate in a modern and efficient manner. The City will prepare a draft of a new Charter for consideration by the voters and this draft will be presented to the voters on the first available date on which such vote can be held. Nothing in this Plan or the report is intended by the City to solicit support or campaign for or against this proposed initiative for Charter repeal, reform or amendment. The City takes no position advocating or campaigning as to whether such Charter repeal,reform or amendment initiative described in this report and the Plan should or should not be approved by the voters. This document is intended to Packet Pg. 1273'. 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court 0 illuminate the unique governance issues the City does face. This report and the Plan notes in several places that the Core Team has identified a need for changes which lead to Charter reform, recommended Charter reform, and indicated that individual Core Team members intend to support a Charter reform initiative. In compliance with the Bankruptcy Court's direction by order entered November 24, 2014, the Plan of Adjustment and associated disclosure statement must be submitted to the court by May 30, 2015. The Plan provides for the treatment of various classes of creditors' claims against San Bernardino. The associated disclosure statement is an explanatory document that provides supplementary information on the treatment of creditors under the Plan of Adjustment. The Bankruptcy Code specifically prohibits the solicitation of the acceptance or rejection of a Plan of Adjustment prior to E the court approving a disclosure statement. The Bankruptcy Court is not obligated to approve a 3 Plan of Adjustment. It may dismiss the Chapter 9 case, which would mean that the City would no a longer be under the protections provided by Chapter 9. It is quite possible, and indeed probable, o that the Plan of Adjustment may change through negotiations after it is filed. The Plan of c Adjustment must be one that is in the best interests of the creditors, which has been interpreted to mean that it needs to be better than other alternatives or a dismissal of the Chapter 9 case. Chapter 9 does not allow the creditors or other parties in interest to file a Plan of Adjustment. o The Insolvency There are a number of measures of solvency for municipal corporations. The most commonly o accepted metrics of fiscal health for municipal organizations are: 1) service delivery solvency, 2) 0 budget solvency and 3) cash solvency. Each is defined below. o c c� • "Service delivery solvency" is defined as a municipality's ability to pay for all the o costs of providing services at the level and quality that are required for the health, safety and welfare of the community. • "Budget solvency"refers to the ability of an agency to create a balanced budget m that provides sufficient revenues to p ay for its expenses that occur within the budgeted period. co • "Cash solvency" is defined as an organization's ability to generate and maintain C cash balances to pay all its expenditures as they come due. E s R One can think of these measures as a pyramid which builds a fiscal foundation for a city. At the Q bottom is cash solvency, which is absolutely essential for day-to-day operations. Above this comes budget solvency, a necessary condition for sustainable operations. Finally at the top of the pyramid is service solvency, which denotes the ability to provide for the municipal operations at a level consistent with community needs and expectations. While a municipality can operate in a condition of service insolvency or even budget insolvency for some period of time, cash solvency must always be maintained. Currently San Bernardino is both service and budget insolvent, and cash solvent only due to the protection of Chapter 9 bankruptcy. San Bernardino sought bankruptcy protection on August 1, 2012. The filing was made because of OF acute cash insolvency. The City had depleted all General Fund resources and could not keep current Page 2 Packet Pg. 1274` 6Aa�4 �h City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court with normal operational expenditures. The City filed under an emergency section of California law instead of going through the AB 506 "neutral evaluation process" otherwise required before a local government can file for bankruptcy. This process can take 6 months, and San Bernardino had less than 60 days of operational cash on hand. To conserve cash for operational requirements, the City suspended payments due to the California Public Employees Retirement System (CalPERS), and certain debt payment obligations. It also obtained stay protection from a number of other liabilities and obligations. A pendency plan budget was passed in November 2012 as set forth in Resolution No. 2012-278 which cut $26 million in expenditures and deferred another$35 million in payments. Y The City's eligibility for bankruptcy protection was challenged by CalPERS and an employee E bargaining organization in 2012. Ultimately,the City was ruled eligible for bankruptcy in August 2013,but CalPERS appealed the court's order. The appeal did not move forward as a result of an Q agreement reached with CalPERS, as found in the Mediator's Order approved on June 9, 2014 0 under which the City agreed to repay CalPERS for missed payments and resume making monthly ro payments. A variety of other litigation arose from the bankruptcy including motions filed by the a police and fire unions and the owners of the certain pension obligation bonds the City had not been LO paying. M In 2013 and early 2014, the City engaged in a recall and a special election which resulted in a new C Mayor, City Attorney and several new Common Council members. The City also had a 24% annual 0 turnover rate in the executive leadership of the City (City Manager and department directors) over (D the last ten years and 50% in years 2009 and 2013. In late October 2014, the bankruptcy court 0 ordered the City to file a Plan by May 30, 2015. 0 a 0 A Return to Solvency To address budget shortfalls in thirteen of the past eighteen years, the City has already cut staffing and benefit levels, added new revenue sources, expended reserves, and eliminated services and m programs. Nevertheless, it was forced to seek bankruptcy protection in 2012. Without substantial and immediate restructuring of the organization,both operationally and financially, the City will N not be able to provide basic services. E While a number of factors have contributed to this crisis,by far the most significant and difficult to control has been increasing operating costs occurring at a time when the City's revenues have yet to a fully recover from the Great Recession. Since the City's peak General Fund revenue of$133 million in 2008, the City has experienced severe losses in key areas such as sales tax, franchise fees, utility users tax (UUT),permits, and funds transferred from the Economic Development Agency (EDA). Today, several years after the end of the Great Recession, General Fund revenues remain $7 million below peak levels at$126 million. As a growing full service city with a population exceeding 200,000, the City has historically provided services through a workforce exceeding 1,200 employees. Maintaining a large workforce has exposed the City to rising operational and capital costs as well as long term benefit liabilities outside of the City's control. Despite recent reductions of approximately 250 employees, numerous Page 3 Packet Pg. 11275 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court other cost-reduction strategies implemented by the City, continued deferral of$200 million of essential capital maintenance and the replacement of fleet vehicles, a structural deficit upwards of $20 million in the General Fund continues. Unfortunately,there is no "silver bullet" for significantly increasing revenues, stabilizing operational costs or funding significant capital maintenance for a City incorporated over 100 years ago. Unlike a private employer, a public agency cannot simply decide to go"out of business" or otherwise stop providing certain essential services to the public. The City has made reasonable efforts over the last several years to address its fiscal situation and continues to do so. Municipal services are generally labor-intensive,with City employees such as police officers and firefighters providing essential services. Nonetheless, the City has implemented E $26 million in annual cost control measures in an effort to maintain essential service levels, U) including the following: a w 0 • Workforce and service reductions • Implementation of tiered pension plans a • Benefit concessions M • Pension cost sharing co • Elimination of the Employer Paid Member Contribution(EPMC) for safety employees • Standardization of Other Post-Employment Benefits (OPEB) and elimination of an OPEB Implied Subsidy CD The budget pressures faced by the San Bernardino municipal government reflect the broader economic problems faced by San Bernardino's residents. By almost any measure,the Great o. Recession continues to have a devastating effect on San Bernardino's residents and their economic 0c resources. In turn, as further detailed in the analysis to follow, these economic factors have E weakened the City's tax base and revenue streams while adding to community service demands. While there is much evidence to conclude service impairments to date have risen to the level of an m emergency, a critical consideration is whether economic conditions and rising operational costs will co further weaken the City's ability to provide public services into the foreseeable future. Unfortunately, the answer is a resounding yes. Because of this situation, through a comprehensive E operational and financial restructuring the City must place a priority on fiscal and service stabilization starting with the delivery of essential services, sufficient working capital equal to 15% .2 of operating expenses, capital investments in infrastructure, information technology,public Q facilities and fleet vehicles, as well as deficit recovery for essential internal service funds (i.e., workers compensation and general liability) equal to approximately $200 million. In addition to fiscal and service stabilization, strategic plan investments are necessary to ensure the City can flourish as a solvent organization into the future with the support of its residents and business community. Information gleaned from strategic plan workshops provide the City with valuable input into the services and programs most needed and wanted throughout the community. Through the strategic plan process,the City received feedback on service delivery options as well as revenue generating options for inclusion into the Plan of Adjustment. Page 4 Packet N. 1276 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Adjustment While it might be tempting to conclude that the City ca n survive with a Plan of Adjustment, which does not address fiscal and service stabilization issues or strategic planning initiatives, it would leave the City in a continuing position of service and budget insolvency,which is not consistent with a fundamentally sound municipal corporation. Based on our strategic planning and analysis of the City's overall fiscal position,returning the City to service and budget solvency is essential for a successful San Bernardino. Unfortunately making the investments necessary to return the City to satisfactory operations makes the proposed treatment imposed by the Plan of Adjustment difficult for all stakeholders in the bankruptcy. Figure 1 summarizes the financial components that this Plan proposes to meet the City's financial gap. These restructuring savings and additional resources are sufficient to meet the City's fiscal and service stabilization goals while maintaining a working capital reserve equal to approximately 15% E on an ongoing basis. Figure 1. Financial Components of the Return to Fiscal Solvency Q 0 c Restructuring Savings&Additional Resources a $45 ............--- --.— M $40 ........ __ M 0 Measure Z Sales $35 Tax Renewal �+ d $30 p New Fee Revenue O c - f r &Tax Adjustments (D r $ !, % 0 25 r l W Contract Fire& c $20 r EMS a $15 ■Efficiencies& _ $10 Savings $5 l` 0 Debt Restructuring (net) m ${) r r 16 17 18 19 20 2122 23 24 25 26 27 28 29 30 3132 33 34 to m E v An Organization without an Accountable Governance System r As this Plan document will demonstrate, the seeds of San Bernardino's decline and eventual Q bankruptcy were sown and have matured over decades. The Chapter 9 filing of San Bernardino is not due to any one financial calamity or setback,but rather a series of events cascading into bankruptcy. The Great Recession was the triggering event,but it was also merely the last event in a long chain leading to this result. The Core Team and other constituencies, including outside experts, have concluded that decades of questionable management and inefficiency are very much the result of a convoluted City Charter that complicates daily management and generally neutralizes executive authority. The City's governance structure is highly complex and unique compared with any other city in California. Overlapping authority and ambiguities in the City's Charter create operational uncertainty and Page 5 Packet Pg. 1 277 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court ineffectiveness because the role, responsibility and authority of the Common Council, City Manager, City Attorney and Mayor are unclear and at times, contradict each other. No other city in California has followed this peculiar governmental approach. The Charter itself has grown and progressively become more unwieldy as a result of City initiated amendments in 1992, 1995 (twice), 1996, 2001, 2004 and 2014. With a system of diluted authority,many previous City employees with named responsibility have sought employment elsewhere, creating an untenable 24% annual turnover rate in executive management positions over the last ten years. The outcome was best summarized in a recent Atlantic article,by the well-known writer and journalist James Fallows: "San Bernardino has a uniquely dysfunctional city-governance system, sort of a metropolitan parallel to the current zero-sum gridlock of national politics. Some cities we've E seen run on the "strong mayor" principle; others, "strong city manager." Because of San Bernardino's unique and flawed charter, it has in theory a "strong mayor" but in reality a Q "strong nobody" system of government, and an electoral system so discouraging that that c turnout rates are extremely low even by U.S. and California standards." IL Source:"Generation Now—What People Do, When There Seems to be Nothing to Do."The Atlantic.April28,2015. Cl) LO The State of Municipal Services The City of San Bernardino has been in progressive decline for decades. It has been losing L population growth to other areas of San Bernardino and Riverside Counties continuously o throughout the 1980s, 1990s and since 2000. The City has experienced a similar decline in assessed valuation, median household income, and sales tax. As it lost ground to other municipalities, it evolved from a city that was the epitome of middle class living into one of the poorest communities in the United States. With a median household income of just$38,000, San Bernardino is by far the o poorest community for its size in California. _ 'v L Ca As the City has declined and grown progressively poorer, municipal services have suffered. The City's convoluted governance and management approach has made even simple operational m improvements and industry best practices unattainable. Moreover, without a strategic plan to realign CO the organization,the City has made little progress toward improving the minimal services it provides. In the years of decline, the City's deferred facility and infrastructure maintenance needs E have grown to hundreds of millions of dollars. The community continues to suffer from a severe crime problem (ranking among the worst for cities of its size in the state). Not surprisingly, people r that can live elsewhere choose to do so, leaving San Bernardino a poor and disenfranchised a community. Major Plan Provisions The following summarizes the major elements of the City's proposed Plan. Charter Issues and Core Team Recommendations Management and program effectiveness must improve. The City must also address huge infrastructure deficiencies and the need to pay their employees market rate compensation. To do so will require additional expenditures; yet, these issues are so severe that money is only one of the major problems. Just as important, the Core Team, along with outside municipal government Page 6 Packet Pg. 1278 6A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court experts hired by the City to prepare this plan, have expressed strongly and clearly that San Bernardino must address the reform of its system of governance and management. San Bernardino is an outlier in comparison to other cities of its population size in the State as it does not employ a true Council/Manager form of government. It also has an elected City Attorney, a peculiarity shared by only eleven other cities in California(mainly very large cities), and an unusual and unwieldy Charter. All of this has led the Core Team to recommend that the existing Charter be repealed and replaced with a Charter that clearly spells out responsibilities for policy (Mayor and Common Council) and administration and management(city manager) so the government can operate effectively and efficiently. The current Charter so impairs the operation of the City that it has been forced to seek an interim operating agreement(see Attachment I) even to be able to develop and implement this Plan. This fact was dramatically illustrated by a strategic planning committee which unanimously told the Mayor, majority of the Common Council, City Attorney and City Manager, E that operations and management needs fundamental reform. The City intends to establish a Charter committee to draft a new Charter and place that new City Charter on the November 2016 ballot for a consideration by the voters, or sooner if possible. o Expenditures and Labor Costs Labor costs are the City's largest expenditure, yet the City is continuing to experience severe a retention and recruitment problems throughout the organization. Some of this is due to poor morale LO resulting from bankruptcy and the chaotic operating environment spawned by the flawed governance and management system. However, the bankruptcy team also commissioned a detailed 0 study of total compensation paid to City workers. The study revealed that City employees' total o compensation, for many groups of employees, is below the market, especially for non-safety personnel. This is somewhat surprising given all the attention to Charter Section 186 which results o in automatic salary adjustments for police and fire sworn personnel. Overall, non-safety compensation appears to be 15%to 32%below the relevant market averages. Base salaries for . safety employees are above average,which would be expected given the impact of Charter Section =_ 186,but are below average when all compensation(including benefits,but not overtime) is taken L into consideration. m c The realities of the compensation issue result in a challenging situation for the City. The approach in taken in the Plan is to eliminate City positions to the extent possible by contracting for service delivery as a number of peer jurisdictions do,but to gradually move those positions remaining in E the organization to market compensation levels and stop the crippling recruitment and retention problems it now experiences. In other words the City needs to become a leaner organization,by moving to alternative service delivery approaches which result in satisfactory services without the Q need for the City to directly employ personnel. The City also needs to compensate employees which remain at an average market level. Annual Deficit, Potential Solutions and Treatment of Creditors The Plan includes a detailed fiscal model which includes projections going out 20 years. The Plan clearly documents all the assumptions made in this model and the resulting projected fiscal position of the City today and going forward. Decades of organizational failure have yielded a huge backlog of maintenance and infrastructure needs that must be addressed for the City to have service 0 solvency. In addition, the City must restore the internal service funds utilized to pay for budget Page 7 Packet Pg. 1279 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court deficits in at least four of the fiscal yea r s p rior to bankruptcy in order to balance the City's budget in the years to come. In contrast to labor obligations, the City has a relatively modest debt load burden. Further, in many cases secured debt has relatively strong collateralization. Therefore,the City plans to request appropriate assistance from secured obligation holders,but ultimately it simply cannot continue to operate if the collateral,mainly essential City buildings, is lost. Given the lack of real flexibility with secured debt and labor(aside from the contracting or alternative service delivery approach mentioned above), the Plan is inevitably hard on unsecured creditors. All of the unsecured creditors will receive very little towards the amounts owed. Rebuilding the City, albeit with a much smaller employee foot print, and paying secured creditors is E all the financial capacity the City has. U) Figure 2 shows the annual deficit after fiscal stabilization expenses,but before restructuring c savings. _ R a Figure 2. Fiscal Model Annual Estimated Deficit($ in millions) M LO General Fund Revenue&Expenditure Trends 00M ---Total Revenue --a—Total Expense $240 ... _ - - -...----_.._..-. _.-._-...-- $220 > $200 0 V $180 -- ---..-...... --- .. -...._..............----...._..—.. Q. $160 - p c $140 $120 ...... _....._...................................— - ---.........._.._............... $100 O _ Net Annual Surplus(Shortfall) 'a $10 $0 = L ($10) - N ($20) m ($30) c0 ($40) - —-- - -- ($50) 1---.._.___._._—... _ ..... ..... --- �_ 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 E t V Table 1 provides a summary of the actions the City proposes to return to fiscal solvency. Action items are organized by the financial components of the Recovery Plan presented in Figure 1. a Further details on each element of the overall plan are provided in the body of this document. It is important to note that these actions require implementation and inevitably there will be changes in the overall fiscal impact. Q Page 8 Packet Pg. 1280 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 1. Cost Saving and Revenue Enhancement Actions and Estimates (General Fund) Cost Savings and Revenue •... • Ongoing Schedule Efficiency Improvements Contract fire and EMS services' $7,000,000—10,000,000 2015 Contract business license administration $650,000 to$900,000 2016 Contract fleet maintenance' $400,000 2016 Contract soccer complex management and maintenance $240,000 to$320,000 2016 Contract custodial maintenance $150,000 2016 Contract graffiti abatement $132,600 2016 E N 7 Implement other efficiency improvements $1,000,000 or more 2016 Health care savings(retirees) $370,000 2016 0 Debt Restructuring c General Secured Bond Obligations $487,450 2015-2016 L" Cl) General Unsecured Bond Obligations $13,481,000' $3,510,000 2015-2016 LO 00 M Restructuring of other creditor obligations $4,300,000 2015-2016 New Fee a L Revenue . Tax Adjustments 7 Seek reauthorization of the Measure Z sales tax in 2021 $8,300,000 2021 (requires voter approval) 0 Perform a transient occupancy tax(TOT)audit $200,000 2015 r_ M Collect new waste management franchise fee(once service $5,000,000 2015 0 0 has been contracted) _ L Increase waste management franchise fee $2,800,000 2016 f° c L Implement water sewer utilities franchise fee p / $1,050,000 2015 pp c Update master fees and charges schedules $200,000 2016 cu Implement program for collecting street sweeping parking $200,000 2015 = violations E t Organizational Improvements • Ongoing Costs Implementation 0 Costs Schedule a Implement compensation adjustments for all City $400,000 and growing 2016 and ongoing employees (2%adjustment for non- safety employees) Provide resources to Charter Task Force and schedule $150,000 2016 election to consider revised Charter Implement strategic planning initiatives $1,000,000 to$3,000,000 2015 and ongoing depending on timing and ability to fund Rebuild corporate support functions6 $500,000 $100,000 2015 and ongoing Page 9 Packet Pg. 1281 6:p:a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court 'In 2012,the City of Santa Ana contracted with Orange County Fire Authorit y(OCFA)f or f ire protection services. The City obtained savings of 18%-21%($8.7-10 million)of the Fire Department's annual budget.This preliminary estimate for San Bernardino incorporates the estimated cost savings from contracting fire and EMS service delivery to an outside agency and implementing a variety of service efficiencies identified in the Citygote Study. 2 Represents a combination of cost savings in City staff and increased revenues. 3 Estimated cost savings do not include savings from avoiding fleet replacement costs,the costs of fleet maintenance and part-time staffing costs;excludes Water Department fleet. a This reflects obligations deferred to date and that are due in 2014-15. s The Common Council implemented a practice that reduces building permit fees by 50 percent.Fees collected do not cover the cost of providing the service. IOne-time cost to rebuild corporate support functions is for consulting assistance and implementation of technology improvements. It should be noted that the City may have the opportunity for other one-time revenue development r options. The largest of these would probably be the eventual sale of former redevelopment agency E properties. Currently the City roughly estimates it may be able to generate approximately $3.9 N million in one-time revenue from sale of such properties over a 5 year time period. Since this revenue is not substantial and is subject to significant legal and market risk factors it is not included a in the Plan of Adjustment at this time. r_ ca 0- Table 2 describes the remaining revenue enhancement opportunities which may be available to the City; however,they are reliant on voter approval, or some similar hurdle such as legislative LO approval. Only renewal of the City's sales tax measure (Measure Z) is included in the gap revenue projections. Assuming any of the other options could pass is speculative at this time. Table 2. Cost Saving and Revenue Enhancement Estimates (General Fund)—Requires Voter Approval ac0i Revenue Opportunities Ongoing(Annual)Savings Implementation O Schedule M 0- Tax Adjustments O C Measure Z renewal(sales tax) $8,300,000 2021 F Utility user tax increase(1%) $3,000,000 TBD m Utility user tax on water,sewer and refuse $5,000,000 to$6,900,000 TBD co Real property transfer tax increase($5 per $3,600,000 TBD a: $1,000 of value)' m E Fee Revenues t v R New 911 communication fee $3,878,000 TBD Q Business license fee changes' $1,500,000 TBD Edison(electrical)franchise fee increase $922,500 TBD Voter-Approved Total Potential Fiscal Impact of Plan of Adjustment 'Ability to increase the property transfer tax subject to detailed legal review.It is anticipated that there would be major,organized opposition to such an increase,and there may be significant legal impediments. Z San Jose generates$44 per capita utilizing a business license structure based on number of employees. Because San Bernardino has fewer businesses and employees,it is estimated that the City would generate revenues of$39 per capita by similarly revising its schedule. C Page 10 Packet Pg. 1282 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court 3SCE has been unwilling to change its olderfranchises,and implementation of this would be difficult. Options include increasing the City's franchise fees by adding.5%to customer bills or requesting the California legislature to sponsor a change in legislation to level the franchise percentage among cities. Table 3 shows the proposed treatment of the major creditors of the City. In virtually all cases, the City has not been able to negotiate these terms,but intensive attention will be turned to these negotiations after the filing deadline for the Plan is met. Table 3. Proposed Treatment of the Creditors- Summary Year Savings Will Be Creditor c Obligation • • al E Unsecured Obligations Pension Obligation Bonds $4,039,8811 2016-2036 Q Retiree Health Claims 2 $40,000,000 to$50,000,000 2015 O _ in avoided OPEB costs t° a Employee Leave Claims TBD,estimated at 2015-2016 ch $10,000,000 to$16,000,000 M Trade Claims TBD,estimated at 2015-2016 $2,000,000 0 Litigation Claims TBD,estimated at 2015-2016 � 0 $5,000,000 to$10,000,000 0 Subtotal $57,000,000 to$78,000,000 $4,039,881 c=a 0- Securnd Obligation's 0 1999 COPS s $487,450 2016 to 2025 1996 LRBs" $0 2016 to 2023 i d m Subtotal $487,450 _ R Other Obligations c Secured Financial Lessor TBD,estimated at 2015-2016 E E Claims $1,000,000 c U R Subtotal $1,000,000 Q Fstirnatpd Total $58,000,000 to$79,000,000 $4,527,331 1 Savings escalate from$3,453,894 in 2016 to$4,719,163 in 2036. 2The City has made no provision for making these payments. 3 Assumes that the General Fund portion of the 1999 COPS are defeased. The City will continue to make payments based on the current debt schedule but has the asked the bond insurer to provide a surety to replace the cash reserve fund. The use of the cash has yet to be determined. Recovery Plan and Conclusion It will take time for San Bernardino to recover. To recover and emerge from bankruptcy will require both economic restructuring and fundamental changes in the functioning of government. Obligation Page 11 Packet Pg. 1283 6�A a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court restructuring is a necessary component of the Plan but alone will not be sufficient for recovery. San Bernardino will have to use a variety of strategies moving forward to become a modern, sustainable organization. As described in Figure 3,two fundamental components are required for the City to emerge as a service solvent city following implementation of the Plan. As noted, strategic planning is a process critical to ensuring the City keeps its focus on the long range goal: a service and budget solvent city. Figure 3. Creating a Service Solvent City A service E Strategic Planning SO 111e t1 t City .,,. capable of o Bankruptcy, Plan of - implementing Realignment and 01 M its Strategic LO Economic Plan � 0 The Plan first analyzes the problems facing San Bernardino and then describes how the City must W be restructured to ensure that it can improve the service delivery structure so it is modern, effective and efficient. The Plan then identifies what the City can do to make itself function like other cities a of its size and type in California. Finally,the Plan provides the City's financial projections and 0 proposed treatment of creditors. c� c L San Bernardino can recover,but the road to recovery will be a long one because it must fix its m governing structure as well as align expenditures with revenues. M r This document is composed of the following major sections: 1. Approach and Methodology E 2. Principles Underlying the Plan 3. City Setting a 4. City Governance, Management and Organizational Effectiveness 5. Inadequate Municipal Services 6. Expenditures and Employee Compensation 7. Recovery Plan: Governance and Service Realignment First 8. Financial Forecast Underlying the Plan 9. Conclusion 10. Attachments Page 12 Packet Pg. 1284 E6�paa � City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Approach and Methodology This Plan provides a path out of bankruptcy for the City of San Bernardino. It is designed so the City can have both a"service solvent" and financially solvent future. This section describes the process and strategy used by a multi-disciplinary team of subject matter experts to develop a Plan that would and could result in such a future for the City. The team was composed of representatives from the City including the Mayor, City Manager, City Attorney, Deputy City Managers, Special Projects Manager, and experienced local government consultants. Management Partners, a local government consulting firm,was hired by the City in December of 2014 to lead this effort. Other consultants included Urban Futures, The Law Office of Linda Daube and Associates, and Stradling Yocca Carlson&Rauth, P.C. The team included individuals experienced in managing and consulting with cities in fiscal crisis throughout 0 California, including those few which ultimately went through bankruptcy (Vallejo and Stockton). The Mayor and Common Council were briefed throughout the process. o c The team relied on a variety of techniques including strategic planning, peer agency analysis, and a organizational assessments. A section of this document is devoted to the strategic planning effort by the community which provided a critical component of the Plan. That process included substantial co public outreach and discussion about San Bernardino's needs and opportunities, all grounded in the reality that the City was forced to seek bankruptcy protection and will need to have moderate near- term goals. In spite of these constraints, the strategic planning effort was well received by the o 0 community which indicated a strong interest in defining a sustainable future for themselves. 4- 0 Another major component to this Plan is the information provided through peer agency analysis. o While every city is somewhat unique, there are many similarities. Many cities in California are o close in size and have similar operational footprints to San Bernardino. The peer agency analysis allowed the team and the City to draw comparisons and establish parameters for service delivery in solvent organizations. m c �a San Bernardino is a poor city in terms of median household income,with high crime rates. We N know from experience that service delivery funding and allocation decisions are made based on service demands and influenced by basic demographic factors such as income and crime levels. By E looking at organizations with similar underlying factors,we can understand what San Bernardino would look like as a functional and sustainable organization. In determining benchmarking Q comparisons, three basic variables were considered: population, median income and crime level. We developed a list of 41 cities between 120,000 to 400,000 in population as reported by California I Department of Finance. Next, cities with similar median household incomes were examined. San Bernardino was found to have the lowest median household income of any of the 41 cities. Cities with median income within 150% (below $56,208) of San Bernardino's were considered for selection. The list of cities was further narrowed by examining crime rates. The top 10 cities with Part 1 crime rates per 1,000 residents were selected. Table 4 showed the cities selected for detailed peer agency comparisons. Page 13 Packet Pg.,1285 6Aa City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 4. Cities Selected for Detailed Benchmarking Bakersfield 367,315 Fontana 202,177 Modesto 206,785 Moreno Valley 199,258 Ontario 167,382 Pomona 151,713 Riverside 314,034 Salinas 155,205 Bernardino San _ m Stockton 300,899 E r Visalia 129,582 Peer Average 219,435 Q 0 We believe the composite picture that can be derived from looking at these cities provides a reasonable snapshot of what San Bernardino post reorganization might look like. There are, a however, two important caveats. First, San Bernardino has the lowest level of median household to income ($38,385)by a large margin. The next lowest is Stockton($46,831). Second, San co Bernardino has the third highest rate of Part 1 crimes,behind only Stockton and Modesto. Organizational assessment tools were also used to develop the Plan. This included in-depth interviews with the City Manager, City Attorney, department directors, the Mayor and members of the Common Council. Team members reviewed budgets and other documents that explain service = delivery to the community. Most importantly,we heard from those working for the City that it is n0. exceptionally challenging to get anything done, and that management has been changing constantly 00 for many years. This led to many of the insights shared in this document relative to the failed governance structure in San Bernardino. The organizational assessment informs the Plan's findings and recommendations in several ways, including the development of potential contracting m opportunities, efficiency options and observations concerning the basic governance and in management system. c d Principles Underlying the Plan U M In developing the Plan,the bankruptcy team and the Mayor and Common Council found it Q important to identify a set of core principles on which the document, and most importantly the plan's component parts,would be based. These principles have been informed by a public strategic planning approach that included a series of workshops in all parts of the City and a two-day strategic planning workshop with a committee of community leaders,the Core Team. The principles are explained below: 1. The end result of the bankruptcy restructuring process must be a sustainable government able to deliver a competitive mix of municipal services meeting industry standards in a manner that is solvent from a budgetary and service delivery standpoint. The service levels must be geared to the unique needs of San Bernardino's citizenry, now and into the future. Page 14 Packet Pg. 1286'' City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court ' period,2. The City's Plan must demonstrate financial stability over at least aten-yea r pe , with all costs of service covered and appropriate reserve levels maintained with recurring revenues. 3. In realigning expenditures with the resources available, the City will attempt to balance competing needs in an equitable manner taking into consideration such factors as security for obligations and its need to be a viable service provider(i.e., recruit and retain qualified employees). Priority will be placed on continued delivery of basic and satisfactory municipal services. 4. The City must deliver services in an effective and efficient manner following industry best practices. Therefore, it must be open to delivering services in the manner and mode to deliver good value and be effective for taxpayers. Consideration will be given to contracting and regionalizing service delivery consistent with accepted industry standards and practices. 5. The City recognizes it will need to remain a viable employer, and therefore, will need to E offer"market neutral" salary and benefits consistent with the labor market for its employees. We define "market neutral" as being the mean or median of the labor market for similar a positions. The City also recognizes that while each position is important, each represents — considerable ongoing expense. Therefore, it will strive to keep employee levels at or below the average for comparable jurisdictions and to equip employees with tools and technology n. as needed to maximize individual productivity. 6. Finally, in accordance with these principles, the Core Team concluded that a significant M barrier that could prevent San Bernardino from becoming a modern and sustainable organization involves its governance structure. The Core Team has expressed that the City needs a form and system of governance proven to support satisfactory performance by other 0 municipal corporations of comparable size and complexity. The Core Team believes that the � application of this principle requires that the existing City Charter be repealed and replaced c with a much simpler charter approach embodying a standard council-manager form of government. As noted, the Mayor, the Common Council (all who voted yes or no on the issue), the City Manager and the City Attorney have agreed to and signed an interim a resolution outlining the way they intend to work together going forward until a new charter L can be considered by voters. m c These principles are the bedrock upon which this Plan is built. They are generally"good N government"principles upon which experienced practitioners in local government could agree. i Moreover, given the extremely low incomes and poverty observed in San Bernardino, it is believed E that the need to protect and preserve basic municipal services, even at the expense of some creditors 2 and other stakeholders, is critically important and even more important than would be the case in a most cities. City Setting The City of San Bernardino,which has more than 200,000 residents, is located in southern California, south of the San Bernardino Mountains and approximately 60 miles east of Los Angeles. The City was originally established in 1810 by Spanish missionaries before emerging as an important trading post in the 1830s during the period of the rancheros. In the late 1800s, railway companies entered the region and made the City the center of their California operations. Page 15 Packet Pg. 1287 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court of only At the time it was incorporated(1869), San Bernardino wa s in the company y three other cities in Southern California: Los Angeles, San Diego and Ventura. San Bernardino was the principal city of the Inland Empire. By 1930 it was the 12th largest city in the state and the largest and most dominant city in the Inland Empire. San Bernardino continued to be the dominant city in the region through the 1960s and into the 1970s. In 1970, it remained the largest city in the area and was larger than most Southern California cities. While population growth continued into the 1990s, things began to change in the last two decades of the 20th century. During this time, a profound and continuous decline began for San Bernardino. The City began to experience major economic challenges in the 1980s with the significant loss of jobs in the regional economy and the growth of the Los Angeles freeway network eastward. From 1982 to the earlyl990s,the region lost about 25,000 jobs as a result of the closing of Kaiser Steel in Fontana E (now relocated to Ontario as Kaiser Ventures), the Santa Fe Railroad Depot, and Norton Air Force U) Base. As a result, impacted employees retired, moved elsewhere for work, or remained locally as a job-seekers, many unsuccessfully. While employment recovered to a degree over time, employers o chose to locate in other areas of the Inland Empire (Riverside County and western San Bernardino County),primarily due to land availability and access to the expanded freeway. Retail sales n. destinations also moved west to attract higher income residents in the region, including those from the Los Angeles area. M Even though the greater metropolitan region has seen major economic growth in the last 25 years, San Bernardino has for the most part been left behind. By 2013, it was no longer the largest or 0 dominant city in the Inland Empire having been eclipsed by population and economic growth in Riverside, Ontario, Fontana, Moreno Valley and Rancho Cucamonga. San Bernardino slipped to the c 17th largest city in the state and was one of many cities of the same approximate size in Southern California. It is no longer a dominant municipal hub city, although it does continue to be the County seat for San Bernardino County. to c Accompanying this drag on the City's economic base and probably exacerbating it was the m development of a cumbersome governance system in the 1990s through the present day and an C inability to develop a viable political consensus as to the City's direction and future. The City co Charter was amended in 1988, 1989, 1992, 1995 (twice), 1999, 2004 and 2014, supplemented by more than 80 City Attorney opinions. During this same period, the City experienced severe political s infighting arising from the separate electoral power bases operating via an elected City Attorney, Mayor and Common Council. With the focus of the elected officials elsewhere, San Bernardino Q began losing population, assessed valuation and income to other areas. The Riverside-San Bernardino-Ontario metropolitan statistical region(MSA) is one of the largest, fastest growing regions in the United States, but San Bernardino lags behind. As shown in Table 5, San Bernardino's population from 1981 to 2014 increased by 73% while San Bernardino County's more than doubled and Riverside County's more than tripled. As a result, San Bernardino's population made up 5% of San Bernardino and Riverside Counties in 2014, a 3% drop from 1981. People have been actively choosing to reside in other cities in the region over San Bernardino. 0 Page 16 Packet Pg. 1288 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 5.Population Growth from 1981 to 2014 Region Percent Change from 1981 to 21014 City of San Bernardino 73% San Bernardino County 127% Riverside County 234% Sources:California Department of Finance Economic Development The decline in population growth is accompanied by a decrease in median income in the community. As shown in Figure 4, the median household income in San Bernardino dropped 30% from 1969 to 2013 while the MSA's increased by 15% during the same time period. The most E U) current median income for San Bernardino City is 69% of the MSA's. Q Figure 4. Median Household Income from 1969 to 2013 c C ca 70,000 a $65,000 $54,9.99 * ** * * * *s** **_* � � sm ® m **•**• * *$61,094 •° �' 4 $60,000 ...._ .i....�. ._ e/t_ •r , _ 1 00 $55,000 11!!_* *A' q% � M. $5550,000 2 Vow$ 69 �+ $45,000 d $54,958 0 O $40,000 U O $35,000 $47,952 $30,000 $38,385 0 C $25,000 a $20,000 O c .,q yp tip 4) 45 ti� 0 -0 'y°'�� y,q 0'6 ti0 1'y0 "0 NO 0" tipy tip ti ti�� C L —San Bernardino City — *Riverside-San Bernardino-Ontario MSA G • m California O CO c Sources:US Decennial Census;US Census,American Community Survey. N Note:2013 adjusted dollars as according to the BLS CPI. +� C d San Bernardino's population is extremely impoverished; by a wide margin, it has the lowest median household income of any city with a population greater than 50,000 in the state. This affects the City's ability to deliver a base level of needed services and must be considered going forward. A a community without much income relies more on basic municipal services such as libraries, accessible recreation, and public safety than residents with greater disposable income and choices. The decline in the median household income of residents in the City is aggravated by the slow recovery from the Great Recession,particularly in comparison with the larger region. The slow recovery is evident from the recent trends in assessed valuations (AV) and sales tax revenue. As shown in Table 6, the City's AV in 2012 is only 27% greater than in 2003, while San Bernardino County is 65% greater and Riverside County is 88% greater. Furthermore, the following Table 7 shows that the City's sales tax revenues are still 27% below pre-recession levels while the two counties have almost fully recovered. Page 17 Packet Pg. 1289 6Aa City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 6.Assessed Valuation Growth from 2003 to 2012 Percent Change Region from 2003 to 2012 City of San Bernardino 27% San Bernardino County 65% Riverside County 88% Sources:San Bernardino FY2012 CAFR;San Bernardino FY2013 Annual Report;Riverside County Assessor's Press Release,2015 Note:Based on assessments of secured rolls.San Bernardino's secured rolls excludes redevelopment. m Table 7.Assessed Valuation Growth from 2006 to 2013 Percent Change Region from N 7 .a a 2006 0 _ City of San Bernardino -27% d San Bernardino County -5% M L) Riverside County -3% M Sources:California State Board of Equalization San Bernardino's land values and its residents' income have declined significantly. Consistent with 0 a declining economic base, San Bernardino's poverty and unemployment rates are significantly higher than the region's. The poverty rate of the City was double that of the MSA and the State of 0 California in 2013 according to the US Census Bureau. San Bernardino's unemployment rate in December 2014 was 9.5% compared with California's 6.7% and the MSA's 7.2% according to the c Bureau of Labor Statistics. �o Education The City's economic struggles are accompanied by low educational achievement. As shown in Table 8, 32% of San Bernardino's population does not have a high school diploma compared to the N regional and state average of 21% and 19%,respectively. Only 11% of San Bernardino's population r_ has a bachelor's degree or higher compared to the state's 31%. _ U Table 8. Education Indicators in 2013 No High a School Degree Region Diplo City of San Bernardino 32% 11% Metropolitan Region* 21% 20% State of California 19% 31% *Riverside-San Bernardino-Ontario MSA as defined by the US Census Bureau. Sources:US Census 2013 5-year estimates,American Community Survey Note:Educational attainment for populations 25 or older. Page 18 Packet Pg. 1290 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Crime San Bernardino's crime rates are considerably higher than the nearby regions. In 2013, California and surrounding jurisdictions' (Fontana, Moreno Valley, Rancho Cucamonga, Ontario, Riverside and Corona) Part 1 crime rate was half that of San Bernardino's; violent crime was one-third, as shown in Table 9. San Bernardino's crime rates are considerably higher than most of the peer cities. Table 9.Crime Rates in Comparison to San Bernardino in 2013 Crime Rates(Crimes per 1,000 Region Violent ••- Total Y _ City of San Bernardino 9.2 44.1 53.7 E y 2.8 25.7 28.6 Region (30%of San Bernardino) (58%of San Bernardino) (53%of San Bernardino) Q O 3.3 22.7 26.1 = State of California (35%of San Bernardino) (51%of San Bernardino) (49%of San Bernardino) o. Sources:California Department of Finance,2014;FBI Uniform Crime Report 2013 cn Note:The FBI uses three categories to define Part 1 Crimes:violent crime(murder and non-negligent manslaughter,forcible rape, 000 robbery and aggravated assault),property crime(burglary,larceny-theft and motor vehicle theft),and arson.Average includes nearby jurisdictions with populations above 150,000.Region includes nearby jurisdictions with populations above 150,000:Fontana, Moreno Valley,Rancho Cucamonga,Ontario,Riverside,and Corona. O V The City of San Bernardino has been in a state of decline for the last several decades, which has resulted in a poor economy, low educational achievement and high crime. Within this demographic = and economic environment, investment by residents and businesses is not occurring. To begin to a. strategically plan for its future and serve a community in need, the City needs to position itself to be c able to efficiently and effectively deliver a basic level of public services. L City Governance, Management and Organizational Effectiveness m Coupled with the fact that the City of San Bernardino lost its economic footing and place in an U) otherwise thriving region, decades of operational failure is largely attributable to its governance and management structure. The Core Team and the residents attending the workshops described below s indicated concerns that long-standing systemic organizational shortcomings combined with confused lines of authority over the organization established by the City Charter have given rise to a Q city unable to deliver even an average level of service. As evidence, consider the following: Nearly 500 residents attending strategic planning workshops were asked to rank the City on a scale from one to ten(with ten being best) in terms of whether they could recommend a friend or relative move to the City. Fully 62 percent of respondents ranked San Bernardino at three or less. Over 31% scored the City as a 1. These results signal that service delivery in the City of San Bernardino is not nearly adequate and that creating a more viable community should be high on the City's agenda. The Core Team has expressed the concern that until the City Charter is replaced with a better approach based on best industry standards, and empowered,professional city management is Page 19 Packet Pg: 1291 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court established, full implementation of the long-term recovery described in the Recovery Plan will be challenging. While the City Charter provides for the position of city manager, the City organization actually operates under a type of quasi strong mayor-city manager(not council-manager), which is an unusual hybrid not found in other cities in California. Combined with these peculiarities is the presence of an elected (as opposed to appointed) city attorney. This is highly unusual, and the resultant confusion about roles and responsibilities makes day-to-day management much more complex. Typically in California, only the very largest cities (Los Angeles, San Francisco, San Diego, Oakland, and Long Beach) have an elected city attorney, and just I I of 482 cities in California use this structure. c E Other cities operate under a strong mayor(not to be confused with directly elected mayor) or council-manager form of government. In San Bernardino, some municipal functions report to the a Mayor and/or Common Council, others to advisory bodies (Component Boards),while still others c report to the city manager. In some cities with a directly elected mayor with specified authority as @ well as a city manager(such as the City of San Jose),there are clear delineations about who has the a force and authority of the chief administrative officer of the city; e.g.,the city manager in San Jose. Cq In San Bernardino, the mayor is designated as the chief executive officer and the city manager is M designated as the chief administrative officer of the City. The police and fire chiefs are under the general supervision of the Mayor, yet the city manager is the immediate supervisor and accountable d for the organization and operation of two of the most costly and important municipal functions. 0 d The Core Team, along with outside local government experts, has expressed a concern that these c concepts are at odds with the basic precepts of management and public administration and that M effective management requires assignment of responsibility and the delegation of sufficient 0 authority to allow management to obtain results consistent with the assigned responsibility. The ambiguity so effectively created by San Bernardino's Charter, in the view of the Core Team and E L outside experts, dilutes the ability to manage the organization. The Core Team along with other m experts believe that this has had a highly corrosive effect on the organization's ability to implement CU needed changes over the years. The organization is in disarray as it does not know who really is in N charge: the Mayor, City Attorney, Common Council, independent authorities (not elected) or the City Manager. The results are self-evident. E A number of operational impacts result from the confused lines of authority as provided in the Q current San Bernardino City Charter, including the following: • Internal service functions struggle to modernize, streamline and provide valued, cost- effective service to the community and the organization. • Significant and unnecessary allocation of staff time and severely constrained resources are trying to bring various municipal functions into a unified, goal-oriented team with a common vision and strong commitment to public service. I 0 Compromised problem solving and strategic planning due to fragmented and conflicting lines of authority. This has been highlighted in the decades-long power struggle between the elected mayor and city attorney positions. • An inability to make informed management or policy decisions .rr. Page 20 Packet Pg. 1292 6 a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court A Singular City Charter The San Bernardino City Charter was first created in 1905. Today, it is a 46 page document with 133 sections. Beginning in about 1988, city attorney opinions began to be issued regarding certain sections. There are now over 80 of these referenced, with 28 separate opinions on the Office of Mayor alone. In the early 2000s, City leaders ostensibly recognized the need to begin to create a professional city management structure. In November 2004, the voters of San Bernardino approved a ballot measure (Measure G) that repealed the City Charter in effect at the time and replaced it with a new one. According to the Impartial Analysis by the city attorney,the major differences between the old Charter and the new"revolve around the creation of the position of city manager, and to make it easier to file initiatives and recall City-wide elected officials." The new Charter became effective E in March 2006. Some provisions related to overall management of the City in the new Charter included: Q • Designating the Mayor as the chief executive officer of the City of San Bernardino. o • Creating a"position of city manager and the eligibility, requirements to be appointed to that a position." • Designating the city manager as the chief administrative officer of the City to be responsible LO for the administration of all City departments, except the offices of the Mayor, City Attorney, City Clerk, City Treasurer, the Water Department, the Free Public Library and the Civil Service System. o • Setting forth the authority and duties of the city manager relative to supervision, appointment and removal of certain full-time,temporary and part-time City employees. o • Designating the Mayor as the person who appoints and removes the city manager, acting city manager,police chief and fire chief, subject to Council approval. c • Maintaining the Mayor's present general supervision of the police chief and fire chief. L The Core Team and the City expert consultant team believe that the Charter revision effectively made a bad situation untenable. As a result, the City has had five city managers since 2004. Clearly, m trying to "manage" San Bernardino is extremely difficult. As it exists today, Figure 5 shows the rn confused reporting and authority relationships of the City of San Bernardino municipal organization. E a Page 21 Packet Pg. 1293 6Aax� City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Figure 5. San Bernardino Existing Organization Structure Common Council Override,amend or revise any decision made formally Mayor or informally by the mayor Executive Officer) Appoint/confi nn/remove Police Chief,Fire Chief,and -^. .. ,.- General Supervision all unclass'fiied City employees Appoint/oonfrm/remove all Prescribe Police and Fire undassified City employees t, organization and discipline (subject to Council approval) i Nominate Police and Fire Chiefs;provide Police and Recommend policy,if asked Fire general supervisor Exclusively provide legal Appoint(but cannot remove) opinion to Mayor and City members of Boards/ L Manager Commssions d E +a N CommissionlBeard Members Appointed by Mayor _ .a General Supervision' --- —� Q Y# I I O M— Immediate Supervision" I City Manager I r_ (Chief Administrative Officer) i I Rf ----- I 0. Administerall City departments San Bemardino Civil Service EE Police Chief (except Water Library,Civil Seance) Employment and M .Supervise,appoint and remove Training Agency I LCD_ .specified full time,temporary,and (SBETA) I I part-time City employees I I Fire Police Supervision subject to constraints on hiring and removal of employees OversightµBoard > to 5 "sorb, I O - I Lbrary l V I d Legend Commu nit Economic Y Public Works Finance Development Deveb meM _. Elected Officials P Agency O I �,ri�a . Boards and ® '• '. I Commissions I d O Appointed by Mayor Information I Wat er I r_ Technol Recreation Human Resources I I _ ogY I I -a FICity Departments `General supervision in this instance is subject to constraints on hiring and removal(requires 2/3 Council vole) Component Boards z- "Immediate supervision has no power to appointor disniss Police Chief or Fire Chief Board has authority to hire,terminate,promote,or demote,any salaried position within department m !4 While the new Charter created the position of city manager, an important step toward a council- manager form of government, the new Charter continued provisions that impede the city manager E from exercising full responsibility and authority for effectively and efficiently delivering services throughout the entire city organization. Specifically, the new City Charter: a • Did not formally establish a council-manager form of government for the City of San Bernardino. Unlike many city charters, no form of government was specifically stated. • Designated the Mayor as the chief executive officer of the City (strong Mayor),with responsibility for general supervision of the police chief and fire chief. While the city manager was designated to have day-to-day supervision of these functions, the new Charter did not achieve the objective of having a city manager position with full responsibility for managing the City. • Maintained three separate departments under the administrative and operational direction of three advisory bodies (Component Boards) appointed by the Mayor and Common Council, not the city manager. The Mayor,however, lacks the authority to remove members from Page 22 Packet Pg. 1294 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court `NMI, each of these boards. As a result, the water utility, library and civil service functions are not accountable to the municipal operation. • Retained the authority of the Mayor and Common Council to appoint and remove department heads, division heads, and all unclassified City employees. Only classified employees within city manager-directed departments may be removed upon the recommendation of the city manager, without the additional required consent of the Mayor and Common Council. Due to contradictions within the Charter, it is unclear whether the city manager can remove department or division(classified employees) heads without the expressed consent of the Mayor and Common Council. There are 482 incorporated cities in California. Among these, 121 have their own charters. Most of the cities with a charter(like San Bernardino) were incorporated during the first half of the 20th E century, or earlier. About 75% of California cities operate under the general laws of the State of California rather than their own charter. a 0 The council-manager form of government is the predominant form of local municipal government C in California, although some cities operate under a strong mayor system. Charter cities typically a designate the form of government within their charter,which is more often than not the council- LO manager form of government. The San Bernardino City Charter does not. Of 28 cities in California co with populations between 150,000 and 400,000, 27 use the council-manager form of government, as shown in Table 10 below. 0 0 Table 10. Selected Characteristics of Californian Cities with Populations between 150,000 and 400,000 Q 0 M Council-Manager Total number of cities Charter n. 0 Number of Cities 28 18 27 3 = Percent - 64% 96% 11% Sources:California Department of Finance,2014;City websites and CAFRs y m In most municipalities in California, and under the council-manager form of government, the in council, elected by the public, is the governing body of the city. The city manager is hired by the council to carry out the policies it establishes. The council generally provides legislative and policy 0) direction while the city manager is responsible for administration of day-to-day operations based on council policy. However, in San Bernardino,the Common Council and Mayor have an extensive list of executive powers. Most critically, the Charter sets forth crippling ambiguities with respect to a the authority of the city manager, the Mayor and the Common Council regarding the management of a$211 million municipal corporation. In a following section, both an interim and permanent fix to the charter issues are discussed. A group of community residents and leaders invited to a strategic planning summit on March 18 and 19, 2015 felt so strongly about this matter that they devoted at least a quarter of their total time to understanding the issue and developing ways to address it. Q Page 23 Packet Pg. 1295 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Executive and Department Head Turnover Running a municipal corporation requires committed employees, visionary leaders with decision- making authority, and most important, a scalable and stable organization capable of sustaining core functions and innovation over time. In other words, it requires effective management. The City of San Bernardino has experienced exceptionally high turnover and short tenure in its executive management team, as demonstrated below in Table 11. • Five city managers,police chiefs and public works directors over ten years. • Four finance directors and fire chiefs over ten years. • An annual turnover rate of 24% over ten years, and over 50% in 2009 and 2013. Table 11. Executive Level Turnover for Major Service Departments E Number of Directors Average Tenure U) Department 004 to 2014) (Years) City Manager 5 2.20 Q 0 Finance 4 2.75 Fire 4 2.75 a Police 5 2.20 Cl) M Public Works 5 2.20 a� Experts hired by the City, including the national consulting firm of Management Partners,who have 0 been engaged repeatedly by the City, and the Core Team concluded that the high rate of turnover is (D a direct result of poorly functioning and confusing management authorities, structures and reporting c relationships embodied in the City Charter. No city can be effectively managed with this amount of 2 management and leadership turnover. In fact, it is unheard of in such a broad scale in other 0 municipalities. Further,this period includes only two years of bankruptcy,which is obviously a highly stressful environment to manage a municipal organization. However, in 2009, the City experienced over 50%turnover of executive leadership. m c Inadequate Municipal Services ' As noted by the Core Team and the City's expert consultants,there are many reasons—including an E ineffective City Charter, management instability,poor financial policies, and the lack of strategic planning—that explain why policy makers and City managers are struggling to make resource allocation choices in support of basic municipal services. Major Service Reductions Throughout the recession and after filing for bankruptcy, the City has made a number of decisions that cut General Fund costs but ultimately limited the City's ability to deliver core services. Some of the significant decisions are discussed below: • Public Safety. The City has reduced sworn staffing for police and fire, closed one fire station, and eliminated or reduced a number of specialized law enforcement functions. These actions have resulted in slower response times for priority 1 (highest emergency) police calls. Page 24 Packet Pg. 1296 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court • City Infrastructure. The City's Public Works Department has deferred infrastructure repairs and improvements, resulting in costs that are too high for future taxpayers to absorb. • Park and Recreation. The City has eliminated ball field maintenance and its entire youth sports program, closed two pools and two community centers, and significantly limited its recreation programming. • Library. Two-thirds of the City's library staff positions were cut, making it necessary to limit library hours. There is no budget for new books or computer replacement. These major service-level reductions, along with others, are summarized in Figure 6. Figure 6. Summary of Major Service-Level Reductions, by Department d E .• r N 7 • Sworn staffing reduced from 349 full-time equivalent(FTE)employees in • Total staffing(sworn and non- a 2008 to 248 today(29%reduction) sworn)reduced 18%since FY Q Number 27%since 2008 • Patrol division sworn staffing reduced by 25%since 2008 a from fr • Community policing teams discontinued • N2011,27% Number units deployed a 15 in 2008 to 13 • Narcotics enforcement reduced by 50%since 2008 in 2014 M LO • Traffic enforcement personnel reduced by 58%since 2008 . One engine company M • Priority 1 average response times increased 76%since 2008 eliminated • Almost three-fourths(73%)of patrol vehicles are overdue for replacement • One fire station closed in d November 2014 CD CD O Parks . Recreation Public • C • Significantly reduced recreation • Public Works staff reduced by 50(19%)since 2008 0 programs;primary information . Deferred street repairs and improvements estimated at$180 million, _ tool for advertising programs up from$88.4 million in 2008 ° eliminated `0 • Deferred facility repairs and improvements estimated at$131 million • Two pools closed to public (although maintenance costs • Only 20%of sewer collection system has been video inspected; m persist) deferred sewer system improvements estimated at$23 million rj • Two community centers closed; • Over 730 claims filed for damages to vehicles caused by potholes reduced hours at six other centers since 2003 m >_ • Youth sports eliminated • 1,200 locations identified for sidewalk and curb gutter repairs • Routine ball field maintenance • Vehicle and equipment replacement deferred(56%of fleet units due Q eliminated for replacement) Support City • Central library hours reduced from 54 to 37 per week(30%reduction) • Two years behind in fiscal year- • Reduced library hours at the three branches from 54 to 20 hours per end audits week(63%reduction) • IT staffing reduced 30%since • Library staff reduced by 68%from 31 in 2008 to 10 FTE 2012 • All 60 public computers are 7 to 10 years old with no funds for • Many computers more than 10 replacement years old • No book budget(all acquisitions rely on fundraising) • Systems disaster recovery at risk Page 25 Packet Pg. 1297 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court The result of these reductions has been a City with public safety apparatuses unable to keep pace with service demands, a deteriorating infrastructure and a poor residential population without access to parks and recreation opportunities or adequate library services.Well over 90% of public school students are eligible for no or low-cost lunches,representing one of the highest rates in California, and the highest rate for this size urban area. People at this level on the income scale have only the public sector to provide basic municipal services like parks and recreation, libraries and public safety services. Police Services Similar to other cities in California(and nationally)that find themselves in or on the brink of bankruptcy,the San Bernardino Police Department(SBPD) had to change its service and policing delivery framework. While the predictable result has been longer response times and significantly reduced community policing efforts and incidence clearance rates,the more critical outcome has Q been an inability to respond to serious community concerns about crime and related quality of life - issues. �o a Streamlining and civilianizing many administrative functions and some services, and contracting CO others over the last several years have reduced overall operational costs;however,the department o still faces the challenge of policing a City with the second highest violent crime rate and third highest Part 1 crime rate among peer cities in the state. Meeting this challenge will require 0 additional financial resources, a stable, credible department capable of attracting and retaining 0 quality sworn officers, and a proactive policing model in partnership with the community. Figure 7 summarizes the crime rates of San Bernardino against its peer cities. Police expenditures among the c peer agencies are shown in Figures 8 through 10. An historical comparison of police expenditure m a. and staffing in San Bernardino is summarized in Table 12. L L M� W V/ ice+ I_ Z U Q Page 26 Packet Pg. 1298 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court I High Crime and Low to Average Expenditures Figure 7. Part 1 Crime Rate and Violent Crime Rate in 2013 70.0 ---------- ------- __----.� —---- __62.4 _ 60.0 56.8 51.4 50.0 - 41.2 41.3 40.0 32 7 29.a 1.2 30.0 _-.._23.9- Y 20.0 5.5 E 10.0 r in _...... 0.0 __... .... ... -........ _ _ OQA Qo� M Q' dot yao o. womm M Part 1 Crime per 1,000 Violent Crime per 1,000 LO M — — —Peer Averge:Part 1 Crime per 1,000 ......Peer Averge:Violent Crime per 1,000 O Sources:FBI Uniform Crime Report 2013;California Department of Finance,2014 > Note:The FBI uses three categories to define Part 1 Crimes:violent crime(murder and non-negligent manslaughter,forcible rape, U robbery and aggravated assault),property crime(burglary,larceny-theft motor vehicle theft),and arson. W O Figure 8. Police Expenditures per Capita in FY 2014-15 a O $450 $424 L $400 $349 $350 $324 $319 $285 m $300 $281 __ to $250 $224 $247 $249 $196 d $200 U $150 r $100 _ Q $50 $0 _ J �\\ c � ° a Total Police Expenditure per Capita FY 2014-15 Peer Average Sources:FY 2015 Adopted City Budgets;California Department of Finance,2014 Note:Moreno Valley's police service is provided through a contract with the Riverside County Sheriff's Department. Page 27 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Figure 9. Police Expenditure per Part 1 Crime in FY 2014-15 $16,000 $14,219 $14,000 $12,000 $10,662 $10,000 ................ ........... $8,338 $7,517 $8,000 ....................... ............ ............. .......... .............. ­-.11.11.11, 1111111, $S,S91 $6,034 $6,000 5,239.................... .......... $4,000 $2,000 $0 0O li-41 0 0 4111 IL mma Total Police Expenditure per Part 1 Crime FY 2014-15 Cq U") Co —Peer Average:Total Police Expenditure per Part I Crime FY 2014-15 FBI Uniform Crime Report 2013,FY 2015 Adopted City Budgets Note:The FBI uses three categories to define Port 1 Crime violent crime(murder and non negligent manslaughter,forcible rope, > Crimes: 0 U robbery and aggravated assault),property crime(burglary,larceny-theft,motor vehicle theft),and arson. Figure 10. Police Expenditure per Police Staffing in FY 2014-15 0 e. $250,000 0 $207,361 $199 77 $179,900 $200,000 $183,48S18 $178,51($179, �162,156 $153,148 20011­1� $155,427 $141,503 m d $150,000 CO 79,002 5100,OC)O E $50,000 $0 dZI 0 41 16; X 0 bo or 41.7 le 0 411 Total Police Expenditure per Police Staffing FY 2014-15 Peer Average:Total Police Expenditure per Police Staffing FY 2014-15 Sources: FY 2015 Adopted City Budgets Page 28 Fg Packet . 1300 1 9 , 6:A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Budget and Authorized Sworn Officers The SBPD operational expenditures and authorized sworn officers over the last five years are described in Table 12. Table 12. Historic Total Police Expenditures and Staffing from FY 2011 and FY 2015 2010-11 Ad opted 2 01 4-1 5 A.•. Total Police Expenditures $66,804,200 $59,855,766 -10.4% Total Police Staffing 529 423 -20.0% Sworn Police Staffing(Budgeted) 312 248 -20.5% d-+ Sworn Police Staffing(Actual) 306 230 -24.8% 0 E Sources:San Bernardino City Budgets Note:Staffing information was provided by the Police Department. v Q The SBPD has experienced difficulty in attracting quality candidates. In a recent hiring effort for o sworn officers, three successfully made it through the process. Only two were hired out of 508 0 applicants who had progressed to the testing phase. One person resigned almost immediately, and the other was injured early in the training phase. While many police officers are attracted to a police LO department where they can obtain broad experience, competition in the region is fierce and co opportunities to serve in other agencies with more stability and reliable resources have impacted the L SBPD hard. Table 13 shows the sworn officer turnover over five years. o U Table 13. Sworn Police Safety Turnover from Calendar Year 2010 to 2014 °' 0 c 2011 2012 2013 2014 ca IL Turnover Rate 5% 7% 8% 11% 13% _ Sources:Provided by the City of San Bernardino E Core Functions Reduced 40%to 50% Delayed Response Times and Aging Fleet Severe reductions in staffing allocations have resulted in a major redesign of the community °c° policing program. While somewhat streamlined,the department is unable to respond to community to concerns in depth or develop long-term strategies for the future. Both narcotics enforcement and responses to gang-related issues have been reduced by about 50%. A 40% reduction in officers E allocated to traffic enforcement increases safety concerns on City streets and reduces citation a revenue that could be used to offset enforcement costs. Emergency priority calls (violent felonies) Q have increased 31% since 2009, response times have increased 34%, and Priority 4 calls (policy reports) response times are up 212%. Finally,there are 161 police patrol vehicle units of which 117 (73%) are overdue for replacement at an estimated cost of$4.9M. Fire Services The San Bernardino Fire Department and the community have been suffering from what a fire services consultant (Citygate Associates) described in a 2014 Fire Services Deployment Study as "severe stress." The report indicated this has resulted from a combination of factors found in a community with little economic investment, a city in bankruptcy and a low median income. Operational staff reductions combined with exceptionally high emergency medical incident call volumes and frequent structure fires have resulted in longer response times and an inability to stem Page 29 Packet Pg. 1301 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court the perception that San Bernardino may not be a community safe from fire. The 2014 study concluded that the City is "not over-deployed to serve its diverse geography and risks." However, given the level of emergency medical incidents, resources typically available for fire suppression are too often unavailable for an appropriate level of response in an urban setting. So while the department has an average number of total fire employees as measured by its peers,the calls for service make effective deployment challenging. Budget Reductions and Staffing The Fire Department operational expenditures and authorized sworn fire fighters over the last five years are shown in Table 14. Table 14. Historic Fire Expenditures from FY 2011 and FY 2015 E 2010-1 11 Adopted Adopted Percent Change m 2 Total Fire Expenditure $32,621,400 $30,001,462 -8.0% Q Total Fire Staffing 191.00 157.00 -17.8% _ c� Sworn Fire Staffing 150.75* 123.00 -20.0% p. Sources:San Bernardino City Budgets M *FY 2011 budget did not indicate sworn or non-sworn positions.The figure assumes"Fire and EMS"category 'n 00 indicates sworn staffing. Lam' Even with the operational reductions,the Citygate study concluded the department's "daily staffing o is adequate for the immediate response fire risk needs presented in the more built-up urban areas of a the city." Even at FY2014-15 spending levels as shown in Figure 11, fire expenditures compare o relatively favorably with peer agencies. CL Figure 11. FY 2014-15 Fire Expenditure per Capita ° c 'a L $250 $234 F d CO c $200 $166 $151 N $150 $141 $132 "_$134 = $128 109 11 $100 $98... .......... __$90 _ r Q $0 _. - ...... et�e`a o��a�a o oae�c Ja``�� cLace o�oca a�`�`aa �`\�ay a`a`c oo 41`'�`•a 4 o p Q �� e�c h� Total Fire Expenditure per Capita FY 2014-15 Peer Average Page 30 Packet Pg. 1302 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court However,the Citygate report also states that the department's incident statistics indicate that far too frequently the closest crews to a building fire are already deployed to an emergency medical call. Emergency medical calls represent 87% of the department's calls for service and increased 15% between 2012 and 2013. Fire alarm calls increased 19.5% during this same period. The City has taken action to reallocate emergency medical calls to other resources for response,but the volume remains high. Additionally,the City closed one fire station and reduced staffing at a second by eliminating a pumper and replacing it with a two-person EMS squad. Despite these efforts to control costs,the City fire department continues to exhibit expenditure growth in excess of the growth of general city revenues. If alternative service delivery options are not explored,the fire department will continue to absorb budgeted resources beyond what the City can sustain. E N Community Risk Reduction ' In addition to fire suppression and emergency medical response, fire departments in California are Q also responsible for mandated inspections including new construction and a range of permitted occupancies, e.g., community care facilities,high rise buildings,hazardous materials facilities. The department has reduced staff in this area by over 30%in the last several years. Consequently, it is lagging in such inspections,putting the community at risk due to non-compliance. LO M City Infrastructure and Maintenance i Over the last decade,the City of San Bernardino has been unable to plan for or provide the o resources required to address even a minimum of maintenance,replacement,repair and U reconstruction of its public infrastructure and facilities. Major areas of deficiency that have a direct o impact on the ability to attract economic development and the quality of life in the community Iinclude the following basic municipal functions. . City Hall In 2007,the City hired an engineering firm to undertake a preliminary risk analysis of the San L Bernardino City Hall building,primarily focused on liquefaction risks. The building is a seven m story reinforced concrete structure designed in 1970 which relies upon"non-ductile" concrete frames for seismic resistance. Because of experience with the 1971 San Fernando earthquake the 1973 Building Code prohibited this type of construction in areas with high and moderate seismic E potential. San Bernardino is in one of the most seismically hazardous locations in California. The report concluded that City Hall was designed"at best to the minimum requirements of the applicable code and is thus vulnerable to significant damage and collapse." The report also stated Q that seismic rehabilitation is"strongly recommended"with costs at the time ranging from$12 to $15 million. No formal action by the City in response to this report has been taken and the City must now urgently consider next steps through further study, including consideration of relocation of City Hall offices on an interim basis. Street System The City of San Bernardino has approximately 629 miles of public streets comprised of the arterial system and local and collector streets. A pavement management study,the mechanism by which most municipalities assess the condition of their streets,was last conducted in 2008. At that time, C Page 31 Packet Pg. 1303 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court costs for routine maintenance,preventive maintenance, rehabilitation and reconstruction of the City's streets were estimated at $88,493,404. Due to the continued deferral of repairs and maintenance and increased deterioration since 2008 and minimal investment by the City in maintaining the street system, street system maintenance and repair costs have likely increased to an estimated$150 million(in 2008 dollars). Based on the construction cost increases tracked by Engineering News Records, estimated costs in 2015 of repairing the City's streets are now likely to be 20.13%more (or approximately $180,300,000). Table 15 shows the breakdown of deferred costs for the areas with the greatest funding deficiencies. Table 15. Deferred Cost Estimates E Estimated All City Streets with Five-Year Deferral • U) Routine Maintenance(crack seal,patching,etc.) $1,739,623 -° Q Preventative Maintenance(slurry seal,scrub seal,etc.) $18,848,920 0 c Rehabilitation(mill&cap,scrub seal&cap,etc.) $60,797,310 CL Reconstruction(full depth reclamation,cold-n-place) $68,688,320 ce) LO Total(2008 Dollars) $150,071,173 M Total(2015 Dollars) $180,300,000 d 0 The Public Works Department has a streets capital projects budget of approximately $17.5 million in FY 2014-15, clearly insufficient to even begin to address the deferred street maintenance needs. o Additionally, the City also maintains a street maintenance work crew of nine to ten staff members with an additional $400,000 in contract work allocated for asphalt repair.Ninety percent of the c staff's time is spent repairing potholes; however,they are unable to keep up with the average of 150 = potholes needing to be repaired at any given time. L Public Facilities m The City currently allocates little or no funding beyond critical needs to basic improvements or major capital maintenance to its public facilities, including City Hall, police headquarters, libraries, co the City corporation yard and fire stations. Maintenance for these facilities has been delayed, and some facilities continue into advanced stages of deterioration. Examples include the failure of the E HVAC system at City Hall; leakage of the skylight and roofs at the Felheym Library, City Hall and r at the City yard; failure of the emergency generator at Station 221 (for the Emergency Operations Center); and mold remediation required at the Villa Senor Library. Table 16 provides the breakdown of deferred public improvement costs. Table 16. Deferred Cost Estimates by Facility Type Description City Hall,Police Dept.,Convention and Career Centers,Animal $34,012,000 Control* City Yard Facilities $1,961,000 Fire Stations $3,785,400 Page 32 Packet 1139.1304 6,A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Libraries $1,670,000 Parks(from Parks Master Plan) $89,828,100 Total in 2015 Dollars $131,256,500 *includes seismic retrofit of City Hall and Parking Structure at$25 million Failure to continue with a responsible maintenance program will result in future accelerated repair costs due to weather, earthquakes or other issues related to regular and repeated use of the facilities. As maintenance is deferred, the public buildings will continue to deteriorate and fall into a costlier state of repair. Fleet Services = There are over 852 vehicles in the City's fleet. These include fire trucks; police,refuse, street E sweeping and maintenance vehicles; and a range of others required to support basic municipal services. A recent assessment concluded that 479 units, representing 56% of the City's total fleet, a are past due for replacement at an estimated cost of more than$41.4 million. No vehicle — replacement funds or investment plan is in place to replace the aging vehicles except on an ad hoc basis through special allocations in response to critical needs. In addition,the City has not supported a modern fleet maintenance operation. This causes frustration to users who are not able LO to rely on properly maintained vehicles and equipment. As a result,preventive maintenance is M practically non-existent and state mandated vehicle safety inspections are seriously backlogged. To support a municipal fleet operation, the City will need to identify funding to address the critical backlog of vehicles and equipment overdue for replacement. Additionally, the City must improve and modernize its fleet maintenance operation either internally or through contract services. Either 0 avenue will require significant additional financial resources on an ongoing basis. a 0 Sewer System Improvements = Sewer system improvements are financed through the sewer service fee. The City maintains 510 miles of sewer lines including 8,056 sewer manholes, sewer siphons and 12 sewer left stations. Pursuant to a video inspection of the sewer system, 1,723 locations have been identified as needing CO repair. The total cost for these repairs is estimated at$23 million today and will only increase as a u1°) result of deferred maintenance. The FY 2014-15 sewer capital expenditures, financed by sewer services fees, are estimated at $2.5 million. The existing sewer service fee is insufficient to maintain E this critical infrastructure. r Concrete Repairs a As of January 1,2015, there are approximately 1,200 locations identified by residents and staff in the City's work order tracking system for sidewalk, curb and gutter repairs. These locations include trip hazards, lifted sidewalks due to roots or damage from other causes. There are also 11 bridge repairs identified that need to be completed. The total cost for these repairs is approximately $7.2 million. The City budgeted$300,000 in FY 2014-15 for curb, gutter and sidewalk repairs and$1.5 million for bridge repairs for a total of$ 1.8 million. Tree Trimming There are over 62,000 trees maintained by the City under contract. For proper tree health, industry standards recommend that all trees be trimmed every five years, which for San Bernardino would Page 33 Packet Pg. 1305 F' 6Aa I. City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court 4 require an annual allocation of$1.26 million. The City allocates $400,000 annually for contract tree maintenance, 70%below that required to preserve the investment in its urban forest. Traffic Signal Maintenance The City is responsible for 288 traffic signals which are maintained by City staff. There are 187 controllers or detectors for traffic signals in need of replacement or repair at a total cost of $2,900,000. Repair and replacement is critical to traffic flow and to mitigate ongoing maintenance by an already lean public works staff. In FY 2014-15, the City allocated$600,000 to replace or repair these signals, far less than needed. Street Lighting The City owns and maintains 6,640 street lights. Southern California Edison owns and maintains an additional 6,488 street lights in the City. The City has experienced extensive vandalism of its E lighting system due to the rising value of copper wiring. The City contracts for its street lighting maintenance, an annual $580,000 contract,but this is not adequate to keep the lighting in good a repair. As of the end of January 2015,there were 475 inoperable City-owned street lights. o Additionally, to reduce ongoing costs, the City should be migrating to LED lights. There is no financial or other plan to do so. n. Parks and Recreation LO In a community with high poverty and unemployment rates and increased drug and gang activity, parks and recreation amenities and programs should be a priority. Yet, San Bernardino has been unable to provide a municipal program to meet community needs, in part due to a population unable o to pay for such services. Cost-prohibitive internal service fund policies increase program costs, and 0 low staffing levels and little training as well as poor technology leave little opportunity for Q innovation. Also, the need to allocate scarce recreational funding resources to maintain existing o facilities that are closed or minimally available to the public means that little remains for direct o programming. The City's investment in its parks is at risk, and basic recreation programs are unavailable to a community that yearns for recreational alternatives other than those found on city streets. m c c� The City ranks eighth in parks and recreation expenditures per capita among peer agencies within N the state. The City spends $18.43 less per capita than the peer agency average even though it is the fourth largest in population, and its population is 3% or 6,104 less than the peer agency average. E U When evaluated against four major cities within the region (Inland Empire), the City: 2 • Ranks last in parks and recreation funding. Annually, the City spends about$5.6 million less than the average of the peers. • Expends $44 less per capita on parks and recreation services despite a population that is 2% larger than the average peer. • Is the only city that does not provide any organized youth sports, camps, extensive teen programs or adult sports leagues, except one summer adult men's baseball league. • Is the only city not producing an activity guide or publication(an industry standard) to inform the community about its park and recreation programs. Page 34 Packet Pg. 1306 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Park Maintenance While the City contracts for park maintenance,the contract does not include ball field maintenance and sport lighting. San Bernardino spends $2,000 less per acre than the national average; therefore, the quality of park and cemetery turf is well below standards putting the community at risk for play on poorly maintained fields. Some Little Leagues are maintaining their fields instead of the City; however, other ball fields have significantly deteriorated,making them effectively unavailable for play. Library The San Bernardino Public Library (SBPL) fares poorly when compared with other public libraries in the state with a population between 150,000 and 249,000. Average per capita funding is $22.04 compared to SBPL's approximately$7.00 per person, according to the state library's Public Library Statistics portal. According to the portal, on average, each library is open 35 hours; however, SBPL's three branches are only open 20 hours at each location. According to the portal, peers Q provide$1.81 per capita collection expenditure for materials;however,the City provides no 0 funding for materials to the SBPL. r_ a Some public libraries sustain a three-to five-year cycle for computer replacement;the SBPL's ; computers are between seven and nine years old with no funding for replacement. While benefiting M from grant funds for discounted telecommunication access, SBPL is unable to meet the Federal Communication Commission's goal of 1 gigabit connections as it offers only 100 Mbps at the � 10 Central Library and 10 Mbps at branch libraries. The goal is all the more challenging due to annual 0 budget uncertainties. 0 San Bernardino (approximately 60 square miles) also lacks public library facilities in the western and eastern portions of the City. These underserved areas critically need library services to bridge the"digital divide" for those who lack access to current technology. This includes having access to computers to draft documents and find a job. Opportunities only available at a free public library are vitally needed for a community that has the highest percentage of residents below the poverty m line in the state among cities with populations of 200,000 and second nationally behind Detroit. CU fn Outdated or Nonexistent Corporate Business and Support Services Administrative,business and corporate support systems and services within the City government E have suffered from a lack of focus and necessary fiscal support for more than a decade. The result is a$211 million corporation relying on outdated and in many cases non-existent administrative and business systems to make management decisions on a daily basis. The fact that the City is behind in its audits, cut its information technology staff by one-third(including the manager) during the last three years and has no purchasing agent are only a few examples of a city that struggles to keep up with its regulatory obligations or strategically plan system improvements. The lack of up-to-date, integrated corporate support systems, or an implementable business plan,represent major obstacles to recovery. Understanding this,the City began developing a Strategic Plan in January of 2015 that will be implemented as the City rebounds from bankruptcy. Part of this Strategic Plan will include the creation of modern, or at the very least, adequate administrative,management information and financial systems,which are a requirement for any municipality to effectively and efficiently Page 35 Packet Pg. 1307 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court make manage its operation. Good policy decision-making must also rely on those same systems to m a informed decisions. Examples of inadequate business and corporate support systems include: 1. Information Technology. No overall governance; end-of life hardware and software (ten-year old computers and systems); new system modules not implemented or not being used to their potential; unused software still being paid for; no application architecture and standards; no comprehensive plan for business continuity or disaster recovery should systems fail. 2. Manual Processes. Manual time attendance and payroll systems not effectively integrated with City financial system; paper-based invoice processing and a document management system for handling of paper across the organization that has not been implemented. 3. Contract Management. Inconsistent and non-centralized contract management policies and E r practices. 4. Purchasing Policy. Outdated purchasing policies and decentralized purchasing practices that Q prevent economies of scale across the organization. c c Expenditures and Employee Compensation Most City expenditures are directly impacted by labor costs, representing the largest component of LO the City's annual budget. As was detailed earlier in this document, most maintenance and capital spending is being deferred, as is proper management and funding of internal service funds (i.e., Q fleet). Rebuilding the City will require rebuilding in these areas,which will require funding. o Therefore the City must scrutinize all existing spending so it can fund these areas and pay creditors. aCD This section addresses the City's history in trying to control employee labor costs and its current o philosophy concerning this cost center. o a 0 Historically, San Bernardino has had a relatively high number of full-time employees. In 2007 when Management Partners conducted an organizational assessment for the City, it found that San Bernardino had about six FTE per 1,000 residents, which was similar to such well-funded cities as d Ontario and Riverside, and almost three times the number of employees as the nearby City of °_ Fontana. This has changed somewhat as San Bernardino shed positions as its fiscal situation cn became bleak and it entered bankruptcy. Figure 12 shows a current comparison of San Bernardino's c FTEs compared with peer agencies. U �a a Page 36 Packet Pg. 1308 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Figure 12. San Bernardino FTE per Capita among Peer Agencies 9.0 8 _ 7.8 .0 7.0 6.4 6.0 ____5.6 _ 5.1 5.0 4.7 4.5, -- 4.6 4 4.0 15 3.3 2.8 3.0 2:4 E 2.0 __. N 0 1.0 Q 4. 0.0 _ _. 0 ° °a\`e� � Q° `a yaS_� �ratac° � yw°��° J�`�``� n LO yao 00 M Total FTE per 1,000 Residents FY 201415 Peer Average , N 0 As the figure shows, San Bernardino has slightly more FTE on average than the peers. While much W lower than Ontario and Riverside (Riverside has an electric utility),the City's FTE per 1,000 is much higher than Fontana, Moreno Valley or Pomona, which contract for service delivery more R IL than San Bernardino 0 �a L This illustrates a challenge for San Bernardino. Public employees are expensive, chiefly because of the defined benefit pension plan common to the industry. Thus, each employee is valuable and must m be as productive as possible. Unfortunately, San Bernardino stopped investing in training and or productivity-boosting information technology systems years ago. co c a� Moreover, independent evidence on total employee compensation shows that non-safety employees = are well below the market for such workers. As a consequence, the City has a recruitment and retention problem. The City needs fewer public employees so it can operate more efficiently, using a a contract model like Fontana or Moreno Valley, and to pay the employees it retains competitively so it can recruit and retain qualified employees. This is true even with respect to positions within police because while Charter Section 186 has distorted salary compensation, the City has tried to balance this by cutting non-salary compensation, leading to a non-competitive overall package and higher CAPERS liability due to high"PERSable" compensation. To realign and effectively manage its service delivery, improve public safety and provide a municipal infrastructure capable of attracting economic development investment, the City must be able to recruit and retain a competent, competitive work force. This will require, in the opinion of the experts retained by the City to develop this plan: Page 37 Packet Pg. 1309 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court 1. Competitive wages and benefits; 2. Continued membership in Ca1PERS for those remaining City employees,the state's defined retirement benefit plan; and 3. Charter reform and/or replacement. The City recognizes and bargains with seven bargaining groups: 1. General Unit Employees represented by the International Union of Operating Engineers (IUOE) 2. Mid-Management Employees represented by the San Bernardino Public Employees Association(SBPEA) 3. Police Management Unit represented by the Police Management E 4. Police Safety Unit represented by the San Bernardino Police Officers Association(SBPOA) 0 5. Fire Management Unit represented by the Fire Management Association Q 6. Fire Safety Unit represented by the San Bernardino City Professional Firefighters o Association,Local 891 (SBCPF) 7. Management/Confidential Association M While employees of the Water Department are considered City employees,they negotiate their own o salaries and benefits separate from the rest of the City, subject to approval of the Water Board of Commissioners (not the Mayor and Common Council). Because of this separation, and because it has access to independent revenues,the Water Department has been able to better implement 0 human resource management(as well as other core municipal support functions). 0 Ten Years of Trying to Contain Labor Costs a. The filing of the Chapter 9 petition on August 1,2012 was preceded by several years of efforts to address escalating labor costs, driven mostly by significant increases to health care and pension 2 rates and City Charter Section 186 raises for safety employees. Miscellaneous employees have not = received any cost of living adjustments (COLA) since FY 2006-07. However, in FY 2007-08,the m Mayor and Common Council authorized an enhanced Ca1PERS retirement formula of 2.7% @ 55 C for miscellaneous or general (non-safety) employees. All salaries for safety employees are established through the provisions set forth in the City Charter, specifically Charter Section 186 (Section 186). U t4 Faced with a structural budget deficit in March 2009, all non-safety employees agreed to a reduced 36-hour work-week, forgoing four hours of pay per week(which negatively impacted the City's ability to deliver municipal services). This concession reduced overall salary compensation by approximately 10% each year,realizing annual savings of about$ 3.7 million per year. In 2011, the Mayor and Common Council continued the reduced work-week and established new CalPERS pension retirement formulas for all new employees. For the Miscellaneous employees,two pension formula tiers were in effect: 2.7%@ 55 (Tier 1) and for employees hired after October 4, 2011,2% @ 55 (Tier 2). For safety employees,there were two pension formula tiers: 3% @ 50 (Tier 1) and for those employees hired after September 1,2011, 3%@ 55 (Tier 2). By the spring of 2012, the City had achieved significant concessions, including suspension of merit increases and required contributions to Ca1PERS retirement benefit by new employees, as shown in Table 17. Page 38 Packet Pg. 1310 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court April 2012* Table 17. Labor Concessions Implemented between 2010 and A p Forego Annual Retirement Plan for PERS . . Employees Bargaining Unit 10%Concessions Merit Increases New . . General V Middle Management V Y YO Management V VO Police Safety V Y ' Police Management V YO d Fire Safety YO E .r N Fire Management *Merit increases for police safety are established through the salary survey methodology in Section 186. While the table indicates Q that police safety and management had agreed to forgo annual merit increases,the reason is that for FY 2010-11 and 2011-12, .- police agreed to give up any salary increases resulting from Section 186 surveys. a While these labor concessions helped to contain labor costs, the negative General Fund cash M balance at the beginning of FY 2012-13 was estimated at$18 million. Given the severity of the M financial situation, the City explored other options for reducing labor costs including reducing vacation and sick leave accruals; eliminating or deferring sick leave cash outs; expanding cost sharing of Ca1PERS pension costs to all employees, not just new hires; eliminating the Employer 0 Paid Member Contribution for safety employees; and reducing retiree medical contributions. 0 Public Safety Compensation - City Charter Section 186 C The basic standard for fixing salaries, classifications and working conditions of the safety c employees in the City's Police and Fire Departments is provided under City Charter Section 186. In essence, Section 186 eliminates the collective bargaining process regarding the setting of public safety salaries and inhibits City management's ability to address the full range of factors that impact m public safety salaries. Past attempts to reduce salaries have resulted in litigation with adverse results to the City. c Section 186 requires the comparison of base salaries for each of seven public safety classifications in ten California cities (which have been reduced from 50 cities) with populations between 100,000 and 250,000. (Comparison cities are not based on the region which is a typical public sector a practice.) Salary ranges for each of the seven classification levels are then established, and salary adjustments are effective annually on August 1. Section 186 has been the subject of numerous legal opinions generated by the City Attorney's Office which have affected, in part, its implementation. The result of the implementation opinions has created established practices that have impeded the City's ability to control how Section 186 surveys are conducted. As a consequence,the City's ability to exercise any fiscal control over safety salaries has been curtailed and the salary increases as well as the increases to salary-driven benefits such as pension benefits have been significant as illustrated in Table 18. Page 39 Packet Pg. 1311 . 6Aa City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 18. FY 2006-15 Public Safety Adjustments Resulting from City Charter 186 Average Annual Change: Average Annual Change: Fiscal Year Police Safety' Fire Safety' 2006-07 7.21% 3.36% 2007-08 3.34% 4.90% 2008-09 5.53% 2.45% 2009-10 2.48% 2.95% 2010-113 - 0.40% 2011-123 - 0.46 m 2012-13 1.72% 0.82% >_ r N 2013-14 3.04% 0.66% .21 :0 2014-15 4.29% - Q w 'Includes police officer,detectiv%orporal,and sergeant positions. c Zlncludes fire fighter,paramedic,engineer,and investigation/captain positions. 'Police Safety and Management agreed to no financial impact resulting from City Charter 186 formula in FY 2010-2011 and in FY 2011-12. to 00 Labor Cost Reductions during the Fiscal Emergency (Pendency Plan) Following the declaration of a fiscal emergency on July 18, 2012, the Mayor and Common Council adopted Resolution 2012-214 in August. The resolution suspended employees' accrued leave bank 0 payoffs, cash-outs and/or sell backs. This suspension was subsequently incorporated into five labor agreements and extended by Mayor and Common Council action in June 2014. They also amended c Civil Service Rule 511 expediting the time for department heads to give notice of layoffs to ro facilitate workforce reductions. On November 26, 2012, the Mayor and Common Council adopted the Pendency Plan as Resolution 2012-278,which reduced General Fund expenditures through continued staff and compensation reductions. A summary of the Pendency Plan elements is provided in Table 19. m c Table 19. FY 2012-13 and FY 2013-14 Pendency Plan Elements i FY 2013 Item Projected Savings 'Notes d U Workforce and Service Reductions $13,452,000 Pre-Pendency Plan savings less SAFER grant. ;a Police Vacancies(voluntary separations) $3,280,000 Reduction in sworn positions from 281 to 260. Q Police 13.989%Employee CalPERS Rate $3,252,000 50%of the normal PERS costs Contribution(benefit concession) Fire 13.989%Employee Cal PERS Rate $1,994,000 50%of the normal PERS costs Contribution(benefit concession) Miscellaneous 9.304%Employee $651,000 50%of the normal PERS costs CalPERS Rate Contribution(benefit concession) Fire Overtime Reduction $921,375 Elimination of Constant Manning provisions in MOU; 35%reduction in Fire OT. Page 40 Packet Pg:1312 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court FY 2013 Item Projected Savings Notes OPEB Implied Subsidy Phase Out Pending actuarial Reduction of the implied annual subsidy to existing valuation retirees of roughly$800,000 to 1,000,000 beginning January 1,2014. OPEB Direct Subsidy Phase Out $213,750 Reduction of the direct payment to existing police retirees to the$112 per month afforded to other retirees beginning January 1,2013 Employer Paid Member Contribution $2,400,000 Elimination of the 9%City contribution and require all (EPMC) safety employees receiving this benefit to pay the contribution through salary deductions. a� E To date, all of the Pendency Plan Elements regarding labor costs have been implemented, some through agreement with the bargaining groups and others through imposition by resolution of the Q Common Council. Following adoption of the Pendency Plan, the Mayor and Common Council o approved agreements with four of the City's labor groups in January and February 2013 implementing cost-sharing and other benefit concessions as outlined in the Pendency Plan. The a. Mayor and Common Council also imposed terms modifying the terms and conditions of the existing Memorandum of Understandings (MOU) with the fire and police safety unions and the o middle management unit. The imposed terms incorporated the elements set forth in the Pendency Plan. Four of the seven bargaining groups also agreed to pension cost-sharing in the 18-month agreements ratified by the bargaining units. In August 2013, the City and the Mid-Management 0 unit reached an agreement that incorporated the Pendency Plan elements including cost-sharing. � The cost sharing for police and fire safety units and the middle management unit was imposed on c January 28, 2013. The cost-sharing for all employees became effective February 1, 2013. C a Fire Overtime Reduction = Overtime for fire fighters has averaged approximately $6.5 million per year for the last few years. This significant overtime cost is primarily the result of a provision in the SBCPF MOU providing for constant manning of stations. The Honorable Judge Jury granted the City's Motion to Reject m the SBCPF's MOU on September 11, 2014. Thereafter, on October 6, 2014,the Mayor and in Common Council adopted Resolution 2014-364 imposing new terms and conditions of employment including the elimination of the constant manning provision. Nonetheless, overtime costs have not 0) been significantly reduced by the imposition of these new terms. �a Employer Paid Member Contribution (EPMC)to CaIPERS Q The four safety MOUs provided that the City would pay the 9% employee contribution. On January 28, 2013, the Mayor and Common Council approved agreements for police and fire management units that included the elimination of the EPMC. Also, on this date, the Mayor and Common Council imposed eliminating this benefit on the SBPOA and the SBCPF. Because the benefit was negotiated as part of the respective MOUs and was not part of a contract amendment to the Ca1PERS safety plan agreement, elimination of this benefit was allowable under California law. CaIPERS Employee Cost Sharing The City has successfully negotiated cost-sharing agreements for active employees with five of the seven bargaining groups. On January 28, 2013,the Mayor and Common Council imposed cost sharing in the amount of 13.989% for both the SBPOA and the SBCPF, representing 50% of the Page 41 Packet Pg.-1313 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court City's FY 2013-14 normal costs. This imposition is the subject of ongoing litigation. General employees (legacy members) pay 9.304%,which also represents 50% of the FY 2013-14 normal costs. Other Post-Employment Benefits(OPEB) As part of the actions by the Mayor and Common Council in January and February 2013, the direct subsidies to retiree health care were reduced for all employees to $112 per month from a maximum stipend of$450 per month. To implement the Pendency Plan elements regarding OPEB and achieve other budget objectives, the City directed its health insurance broker to separate all retirees from active employees when marketing for health plans. The goal was to stop active employees from subsidizing the cost of health care benefits for retirees. This resulted in a reduction in the cost of health care benefits of approximately$200 per month for active employees,while retiree costs E for the same plans increased about$200 per month. With this reduction in premiums for active E LO employees,the City's contributions to these premiums could also be reduced without significantly ?, impacting the affordability of the health care plans available to employees. This enabled the City to realize a $1.1 million reduction in health care costs. 0 _ Further, the City has been negotiating with the Retiree Committee with respect to health care and pension issues. The City has reached a tentative agreement with the Retiree Committee where,with LO the exception of some retirees hired before 1986 and not Medicare eligible, all direct monthly CO subsidies of$112 will be discontinued. These actions have significantly reduced the OPEB liability �N as illustrated in Table 20. The significant reduction in liability was the result of reductions in o premiums and plan changes ($13.1 million) and the elimination of the implied subsidy for all but a U few grandfathered participants ($ 32.2 million). o Table 20. GASB 45 Estimated Actuarial Valuation of City's Retiree HealthCare Plan a 0 AAL(in Thousands) c L Actual @ 6/30/12 $48,819 c d Expected @ 6/30/14 53,937 m c Gains)/Losses to • Premiums and plan changes (13,082)* • Eliminate medical plan implied subsidy for all but grandfathered participants (32,184) • Demographic and other (1,450) d Assumption changes 601 Total Gains/(Losses) (46,115) Actual @ 6/30/14 7,822 *Includes approximately$6.3 million from removing Medicare-eligible retirees and$0.8 million from eliminating medical benefits for hires after January 1,2013. Currently,the City's OPEB liability is based on life insurance and some direct subsidization of retirees. OPEB liability for Water Department employees is approximately$20.27 million, as there have been no changes to retiree benefit contributions and the active employees still indirectly subsidize retiree health benefits. Page 42 � � 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Suspension of Paid Time-Off, on Sick Leave Accruals On August 8, 2012, the Mayor and Common Council suspended all payouts, cash-outs, and/or sell- backs for accrued vacation, sick and other leaves through Resolution 2012-214. This resolution authorized the City Manager to negotiate payouts with those employees separating from the City. In the five agreements that modified terms and conditions of employment for all bargaining units except Police and Fire Safety employees adopted by the Mayor and Common Council on January 28 and February 4, 2013, the suspension of accrued leaves was extended through June 30, 2014. The Mayor and Common Council also adopted resolutions in January 2013 imposing a freeze on all leave payouts, cash-outs, and sell backs for the police and fire safety units. Through the collective bargaining process, in addition to the suspension of leave payouts„ sick leave accruals were reduced for all employee groups to no more than 1,040 hours and the amount of payout at the time of separation was significantly reduced so that no more than 35% of the accrued hours could be E w cashed out provided that the separating employee had six or more years of service. 0 �a The impact of these initiatives as shown in Table 21 has been that within a two year period total c w leave liability, or the amount payable to employees upon separation of service,has been reduced by more than half, from $22.3 million to $9.6 million as of December 31, 2014. a M Table 21. Employee Leave Liability Report as of 12131114 'r' 00 -77-777-777777777F77777 777�7_n Excessive Sick Leave > M d (0j • • Time Sick Holiday • • • d LL 100%of Current Leave 4- Balance $1,832,558 $13,421,274 $1,255,778 $4,924,792 $902,195 $22,336,595 Amount Payable Upon p Separation $1,832,558 $1,268,886 $1,191,839 $4,884,466 $451,098 $9,628,847 S M 'The Chief of Police and Fire Chief are included in the Police and Fire Management groups respectively. Fire safety year-end holiday cash outs:hours are removed from employee banks at year-end for payment(currently suspended); therefore,they are not included in the fire safety line item "Holiday Payoff." pp c cc As part of the agreements approved or imposed by the Mayor and Common Council in January co 2013, new caps were placed on sick leave accruals which had not been previously been in place. Workforce and Service Reductions r Through layoffs, retirements, and voluntary separations, there has been a significant decrease in the 4 City's workforce (Table 22). Since July 2012, 350 employees have separated from City service. The attrition rate for police and fire safety employees was provided in previous sections of this report as Tables 12 and 14. Most of the reductions, however,have resulted from retirements and voluntary separations as opposed to strategic or business decisions regarding municipal services. The ad-hoe nature of the labor reductions has further eroded the ability of the City to delivery basic services. For example, the City now finds itself without experienced employees in fundamental basic services, especially in finance and other corporate support functions. Without appropriate corporate support functions, departmental service delivery suffers. Moreover, inefficiency and poor results go unaddressed because of the lack of corporate oversight. Going forward the City must become much more intentional about its services and delivery methods. Page 43 Packet Pg. 1315 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 22. Full-Time Funded Positions Descri FY 00• FY 2010 FY2011 FY2012 FY 2013 FY 2014 FY 2015 General Fund Positions 1,014 925 951 895 730 735 701 Full-Time Funded Positions 1,224 1,179 1,220 1,142 941 963 985 Sources:Adopted City Budgets Why A Defined Benefit Retirement Program If the City could be relieved of costs and liability associated with the CalPERS defined benefit pension program, its economics would be improved. While the City is strongly considering contractual services for many services which will reduce its future CalPERS obligations, as other E cities have found, it is simply not realistic in the current statewide municipal environment to exit the defined benefit program for the remaining City employees. a 0 In 2012, there were 482 cities and 58 counties in the State of California.Not including 17 cities M with less than 7,000 population who were not CalPERS cities and one newly incorporated city, 451 or over 97% contracted with CalPERS to provide a defined benefit plan for their employees and LO eight or 6.6% either contracted with a 1937 Act County Employee Retirement System or had their CO own independent defined benefit plan. (Voters in two of the four cities with independent defined benefit plans, San Jose and San Diego,have passed initiatives to modify the defined benefit plans 0 for new employees. In the City of San Jose the modifications affect existing employees, and the v City has faced what has been called a crisis in recruiting and retaining police officers.) These mega cities are large enough to deal with the complexity and costs of having an independent retirement = system. Cities the size of San Bernardino simply cannot,which is why they do not exist to any a degree in the State in cities of San Bernardino's relative size. c° L In July 2012, cities and towns throughout California (not including counties and special districts) _ employed approximately 263,000 people while counties employed another 330,900 individuals'. m From these data, it is estimated that about 267 employees of the 464 cities were employed by cities rn that do not provide a defined benefit plan. (The number of employees for seventeen cities with populations below 7,000 was not able to be verified at the time of the analysis.) Based on these 4) calculations, approximately 99.9% of municipal employees and 100% of county employees were provided a defined benefit plan in California. E a These statistics are sobering because,when filling vacancies,most qualified employees are found in other cities and counties. CalPERS provides for reciprocity which allows for employees to move from local government to local government. If a local government is not a member of CaIPERS it will face a huge challenge in recruitment,which theoretically could be overcome only with significant additional salary or bonus compensation. We say theoretically because there is no demonstrated example of a city such as San Bernardino migrating away from CalPERS to another approach. It has never happened. Source:California Employment Development Department,LMI Division,California Industry Employment and Labor Force Page 44 Packet Pg. 1316 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Given this reality, San Bernardino will not be able to recruit or attract employees to deliver the core services which remain without staying in the Ca1PERS defined benefit retirement system. However, a significant challenge for San Bernardino will be to continue to fund Ca1PERS retirements. Projected employer contribution rates (exclusive of the statutory employee contributions and any cost sharing) as determined by CalPERS actuaries reflect rates increases from 24.2% (2015-16)to 32.0% (2020-21) for miscellaneous non-safety employees and 38.8% (2015-16) to 49.3% (2020-21) for safety employees. In addition,to better understand the impact of the Ca1PERS costs,the employee's share must be added to these projected rates. The biggest challenge for the City will be to reorganize functions,realign service delivery and recruit and retain staff to address the present service insolvency. This will indeed result in less City employees; nonetheless,part of this task will be to determine a competitive employee compensation E program that over time will attract and retain competent and committed employees to provide municipal services to the residents of San Bernardino. Toward this end,the City has completed a total compensation survey and is evaluating total compensation compared with benchmark — agencies. o. Status of Labor Agreements M On July 7,2014, the Mayor and Common Council approved extensions to the General Unit and M Management/Confidential employee agreements that had been approved in January 2013 and the —' Mid-Management agreement reached in August 2013. All terms negotiated in accordance with the L_ Pendency Plan concessions were continued in these agreements. These agreements will terminate 0 on June 30,2015 and the City has initiated discussions with all three of the Miscellaneous (D bargaining groups. The City has met with both police and fire management associations and has 0 reached some interim agreements pending the outcome of negotiations with both safety units. The a. Mayor and Common Council imposed terms and conditions on the SBCPF unit on October 6, 2014. Finally, on March 17, 2015,Judge Jury granted the City's motion to reject the SBPOA MOU. Notwithstanding the rejection of the MOU,the City and the SBPOA continue to meet with the goal of reaching a settlement. m _ Recovery Plan: Governance and Service Realignment First cn The preceding sections of this report have discussed the myriad problems and issues facing the E City. These include the inadequate municipal services the City now provides; the consequent flight of population, investment and income from the City; the peculiar City Charter that underlies the City's challenging operating environment; executive turnover; and the inability to adopt systems and operational paradigms common in most other California cities. San Bernardino has many challenges, and creating a modern and sustainable organization will take fundamental change and time. To survive bankruptcy and grow into a fully functional municipal government, San Bernardino will also require political wherewithal and patience, as well as executive leadership and skill. This section of the Plan outlines the recovery plan for the City and begins by describing the critical need identified by the Core Team to implement changes to governance and management. In addition, the need for change was also well articulated by various other constituencies in the Page 45 Packet Pg. 1317 O City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court strategic planning process that the City just completed. Community stakeholders and City residents clearly do not want more of the same. Next, the recovery plan addresses the fundamental changes in service delivery the City must undertake. The last several years have witnessed an uncertain trajectory as the City attempted to cope with its insolvency. The City must realign municipal service delivery to be more efficient. Like many other cities when faced with limited resources, San Bernardino needs to consider different ways of doing business. Public employees are expensive and the City needs a more affordable approach. This means contracting for service delivery on a wide scale as do many of the other newer cities in the state, and ceasing to provide some non-essential services altogether. In tandem with contracting for services, the City must phase in a more competitive compensation E program for the employees it intends to retain. It is not sustainable to operate with total U) compensation lagging the market by between 10%, 20% or even 30%. The recruitment and a retention of employees so critical to effective and efficient services delivery will not be successful if o this continues. C a The City also needs to consider the revenue side of the equation and this section addresses this as ; well. While San Bernardino receives average to above average revenues, inefficiency has been o ingrained into the organization. Consequently the City struggles with keeping revenues current, updating overhead, or generally following industry best practices in managing typical revenue sources. There are also opportunities for modernizing some revenues. Enhanced revenue 0 opportunities cited here will sometimes require voter approval; a difficult proposition in a city as poor as San Bernardino. c Finally this section introduces the City's long-range fiscal plan and the planning and assumptions 0 that go into it. These include baseline assumptions, revenues, expenditure assumptions and the all- important matter of labor cost planning and estimating. c m m The section concludes with a discussion of how the recovery plan fits together and its impact on creditors. The City simply lacks the ability to do so, while continuing to provide adequate CO municipal services. In developing the creditor treatment plan, the City must harken back to the d principles set forth earlier in this document. The City's duty first and foremost must be to provide E adequate public services, a situation made all the more acute when one considers just how poor and Y in need the population is. Q Charter Impact In March 2007, Management Partners, a local government consulting firm,reported the results of an organization review of the City of San Bernardino and in March 2010 provided a status update to the 2007 organization review. The 2007 report concluded that the current state of operations within the government was not the result of wastefulness but, ...rather the natural result of the historical development of a government that has outmoded information systems, inadequate management support and a multitude of convoluted low value processes. Compounded by a serious (and now urgent) fiscal situation, the primary recommendation of the report was that the IWMW► Page 46 Packet Pg. 1318 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court government must modernize... and the political and management superstructure needs to be streamlined. The Core Team, along with Management Partners,which was retained to assist the City in preparing this plan after Judge Jury imposed the May 30 deadline, determined that virtually nothing has been done to address these issues since the report was issued. The Core Team identified the City's organization and policy structure as one of the foremost obstacle to developing the organization into a unified,well-functional operating team. After review,the Core Team concluded that to accomplish this critical objective will require major changes to the City Charter. This is a difficult process but the Core Team believes it is absolutely necessary for recovery. The Core Team also believes that the consequence of making little or no change in the governance structure will sidestep one of the most important issues to be addressed to allow the City to become a cost- E effective,progressive and sustainable government delivering valued services to the community. As previously noted,the Mayor, a strong majority of the Common Council,the City Manager and City Q Attorney have agreed to and signed an interim resolution outlining the way they intend to work o together going forward until a new charger can be approved. r_ a Out of five cities with comparable populations in the state who also operate under a city charter, M LO only San Bernardino does not operate under a council-manager form of government or close co equivalent. In fact, it is difficult to define the type of government contemplated in the Charter, as it presents a mish-mash of overlapping and conflicting provisions. Management Partners,the Core CD Team, and other experts hired by the City are all cognizant that no other city follows this particular 0 approach and the condition and performance of the municipality strongly suggested to them that it is not an effective approach. The council-manager form of government is the predominant form of government in California, although some cities operate under a strong mayor system. A 2004 City Charter change created the position of city manager;however, it did nothing to create a council-manager form of government or any other recognizable structure. The charter change created the position of city manager,but m designated the Mayor as the chief executive officer providing, among other things, general C supervision of the police and fire chiefs. The city manager as the chief administrative officer is N responsible for all City departments, except the Mayor, City Attorney, City Clerk, City Treasurer, the Water Department, the Free Public Library and Civil Service. The Mayor and Common E Council can appoint and remove all unclassified City employees except for"deputies, assistants... holding office at the pleasure of an elective officer." Incredibly,the Common Council can also Q override, amend or revise any decision made informally or formally by the Mayor with a 2/3 vote. Neither the community or the City organization or business understands who is really in charge and can reliably make decisions. This structure is not even remotely comparable to any other found in a California city. For a true chief executive officer(city manager) of San Bernardino to be able to manage and lead the operations of the City government,mandate and implement efficient and effective services to the community, and be held accountable for such operations by the Mayor and Common Council, s/he needs to have authority to: Page 47 Packet Pg. 1319 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court ('44, • Hire discipline and terminate all department heads (effectively) and employees (following p p ( Y collective bargaining agreements, state and federal laws, and a merit-based personnel system). • Direct changes for efficiency and improvement in all City departments. • Recommend to the Mayor and Common Council policy changes and improvements regarding all City operations and implement them with consistency and professionalism across all municipal functions. By having a position called city manager(which has been the job title used since the 1930s to define the chief administrative officer for professionally managed cities), the residents of San Bernardino should expect professional management. E w As stated by International City/County Management Association(ICMA),under the council/manager system, a professional city manager is hired by the governing body to provide the Q following: o • Administration of personnel: Provide direction and leadership to department heads and those that provide direct services to the community. • Management of public funds: Ensure the cost-effectiveness of programs, balance budgets, CO and secure the financial health of the city. • Implementation of programs and policies: Work with elected officials and community L leaders to achieve common goals and objectives for the community. > • Coordination of service delivery: Anticipate future needs, organize work operations, and establish timetables to meet community needs. o c M Under the council-manager form of government,the council is the governing body of the city, o 0. elected by the public, and the city manager is hired by the council to carry out the policies it 0 establishes. The council generally provides legislative and policy direction while the city manager I- is responsible for administration and day-to-day operations based on council policy. The mayor and council set city policy, community goals and objectives, make land use decisions, and authorize CO a municipal budget. The city manager is responsible for managing the affairs of the city, in recommending a budget, directing day-to-day operations, hiring and firing personnel, and serving as the council's chief advisor. The city manager serves at the pleasure of the council. E U Given the policy of non-intervention in distressed cities or counties by the State of California, the Y experts hired by the City and the Core Team have strongly recommended that San Bernardino must Q now move forward to bring its system of governance within generally accepted principles and modern municipal management practices by putting forth a major charter change for consideration by the voters. In the meantime, the City adopted an interim operating agreement, OPGG, to outline how it plans to operate. The City intends to place a new City Charter before the voters and is forming a committee charged with drafting one and placing it on the November 2016 ballot, or earlier if possible. The Core Team and other constituents have indicated that placing Charter reform before the voters should be one of the highest priorities for the City. Page 48 Packet Pg. 1320 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court A Strategic Plan: What Does Service Solvency Look Like One criterion for a confirmable Plan is that it must provide reasonable assurance the City can provide adequate services and will not end up back in bankruptcy court in the foreseeable future. In other words,the City must be sustainable. Public service professionals describe this sustainable condition as being cash,budget and service-solvent. The cash and budgetary solvency standards are addressed in the long range financial plan. The service solvency standard is addressed in there as well as the Service Realignment section below. This section provides the results of a strategic planning process held by San Bernardino community members in March,April and early May of this year which resulted in a Preliminary Strategic Plan(Attachment II). Strategic Plan Process-Overview c The classic strategic plan method used by most successful private and public corporations includes Ian assessment of the organization(strengths and weakness), a survey of trends and emerging issues (opportunities and threats), and then identifies strategies to manage or mitigate challenges to the vision of that organization. During early bankruptcy status conferences,the creditors commented Q that the City was not transparent enough and did not adequately engage the public in its Plan = development. The result of the work by the community in general and the Core Team in particular a. these past several months as part of the strategic planning process strongly indicates they are very much understand what's at stake. o M Because the City had no dedicated resource to conduct such an effort significant assistance was provided by the San Bernardino City Unified School District(SBCUSD). The planning process 0 included five well-attended community meetings (over 500 participants) to solicit public input about the City. This was an impressive turnout for a strategic planning process and a strong o indication of the community's interest in the future of its City. a. 0 The SBCUSD also solicited participation through an online survey, of which 459 members of the public provided input to their City leaders. The results of the survey and the facilitated community c meetings were reported to a Strategic Planning Core Team(Core Team) composed of 17 a� community leaders. This group was selected to represent the diversity of the City. It included m cc university presidents(past and current), leaders of faith-based institutions,non-profit organizations, governmental agencies and business groups. The San Bernardino County Chief Executive Officer also attended,which brought insights not only from the perspective of County government,but also E as a past city manager in Ontario and Fontana. The San Bernardino City Council participated in the team's activities as observers to ensure the recommendations in the Plan were driven by the Q community. This Core Team met for two days (March 18 and 19, 2015) and completed a framework for the City's new Strategic Plan, including a vision, core principles, and specific strategic goals. Figure 13 presents the word cloud of the strategic planning team's vision for the City of San Bernardino.Note the relative importance of safety,business,beautification,jobs and governance. Page 49 Packet Pg. 1321 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Figure 13. Strategic Planning Team's Vision for San Bernardino C 0 Reputation 40 obs housing b,�,� M, jdmhl <. residents I aew z � =Homelessness fe sty y o� � �bye� � a ,$ work? Plaoe��,_ - _ o�ernance� _ Grants ` •F+ =` c—�t— -ei d . cppnrt ties,r. {� W �+c oD nLa res �M m, +; Downtown'system p q �atn7°iOC°' - Q) " history ���«� v"" ■ ■ Fire need t ■ Homin�a� E 16-om unit�t SarE N beAd I lUatiOn, Planning ran Crim e " 0 I people Itue � a.a s'n ess a Engagement M LO CO M The framework of the Strategic Plan was discussed by the City's leadership team(city manager and department heads). They developed specific programmatic proposals to achieve the goals identified in the Strategic Plan. The results were then reported to the Core Team on April 24 and the final 0 work product, San Bernardino's Preliminary Strategic Plan 2015, will be considered by the City 0 Council in May 2015, along with this Plan of Adjustment. a There is an allocation included in the long range financial plan to implement components of the c City's Strategic Plan. While the funding available is much less than what City leadership believes is a necessary the fiscal plan does set aside $1 million beginning in 2015-16 and this amount grows to $3 million five years into the fiscal model, allowing for modest enhancements consistent with San CO Bernardino's fiscal position, and critical need for updated service levels. Actual programming and Cn funding decisions will be made as part of the City's annual budget process. d The Strategic Planning process also showed that the City budget process could be significantly improved in terms of community participation and leadership. An explanation of how another city y with fiscal challenges implemented a very successful Participatory Budgeting project is included as Q Attachment I1I. Strategic Plan Detail -Community Meetings and Survey Results After provided with the meeting purpose and the agenda, attendees were invited into small groups to answer three questions: 1. What existing assets does the City have? 2. What possibilities do they see for the City's future? 3. What changes would they like to see in achieving that future? Page 50 Packet Pg. 1322 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Each group was to prioritize one preference for change. The results of the small groups' work can be found in the Preliminary Strategic Plan,but can generally be grouped into the following three areas of improvement: • Visibility of the City, • Public Safety, and • Pride, Community Ownership and Volunteerism. The most often-mentioned need(22 small groups)was to improve the visibility of the City by repairing and maintaining the community infrastructure(streets, lighting,parks,trees,walking and biking, visible homelessness). The City has not adequately maintained its infrastructure, and as a result,is accumulating a significant and growing deferred maintenance liability. E r The second highest priority identified was public safety(17 small groups)with specific goals of reducing crime, gang graffiti, illegal marijuana dispensaries and increasing community policing Q activities. Clearly the cuts made to the City's public safety programs to maintain cash solvency o were being felt by the community. o.. The third highest priority was pride, community ownership and volunteerism(12 small groups). LO Specifically mentioned were creating and administering volunteer programs to clean up and restore co blighted neighborhoods and leverage existing community assets to develop pride and ownership in the City. The City has a disproportionate amount of non-owner occupied housing. The remaining priorities can be found in the Preliminary Strategic Plan(see Attachment II). 0 CD W The results of the community survey(see Appendix H of Attachment II) were disturbing and °c indicative of San Bernardino's need to dramatically change course to reverse its slide as a viable a community,both from a livability and economic viability standpoint. When asked, "How likely would you be to recommend a friend,relative or colleague to move to the City"using a scale of 1 to 2 10,with 1 being least likely and 10 being most likely,the results were alarming, as indicated in L Table 23. m U) _ E U cSS Q Page 51 Packet Pg. 1323 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 23. Responses to "How likely would you be to recommend a friend, relative or colleague to move to the City of Bernardino?" AnsweI Choices Responses 1(Least Likely) 127(31.59%) 2 62(15.42%) 3 60(14.93%) 4 33(8.21%) 5 51(12.69%) 6 29(7.21%) m E 7 20(4.98%) N 8 13(3.23%) Q 9 1(0.25%) p 10(Most Likely) 6(1.49%) a About 70%responded with 1 to 4 and only 10%responded with a 7 to 10 response. If the vast majority of San Bernardino residents would not recommend moving to the city, this is a major barrier to community image and economic revitalization. Given this result, it is abundantly clear that the City of San Bernardino is not working very well for residents. o Residents were also asked, "If you didn't rate the previous question as an 8 or above, what would o have to take place for you to increase your rating to an 8 or above?"Responses are indicated in a. Table 24. 0 0 Table 24. Responses to "If you didn't rate the previous question as an 8 or above, what would have to take a place for you to increase your rating to an 8 or above?" Answer Choices m p. _ U) A safer community 336(90%) c Clean streets and neighborhoods 288(77%) E A vibrant downtown 228(61%) Community revitalization 222(59%) Q Neighborhood pride(55%) 206(55%) More jobs(53%) 198(53%) The priorities and issues derived from the community engagement meetings and the survey produced roughly the same concerns around public safety, community image, housing, and neighborhood condition. Strategic Plan Detail-Core Team Recommendations F The survey results from the community engagement portion of this project were presented to the Core Team. The Core Team was also presented a PowerPoint presentation from Management Page 52 Packet Pg. 1324 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Partners,which was the result of a truncated organizational assessment of the City to facilitate the Plan development in time for the May 30 deadline. The Management Partners' report was intended to address the causes for San Bernardino's slide into bankruptcy and discuss organizational barriers to be addressed to transition into a sustainable service-solvent City coming out of bankruptcy. The report highlighted the City's gradual slide into extreme poverty, low wages, and the creation of a "poverty island" in one of the fastest growing regions in the country. The issues have been well- documented in previous sections of this document. As a result of discussion around this issue, these community leaders identified that poor governance and inadequate management was a core problem for the City, stemming, in their view, from the highly unusual and cumbersome system set up by the City Charter. Knowing that a true fix to this problem would be time consuming, the unanimous recommendation of the Core Team was to ask E the Mayor and Common Council to agree to a document entitled Operating Practices for Good Government(OPGG)that would require them to adhere to a list of good-governance behaviors Q commonly found in high functioning cities. Recognizing that adoption of the document by the o Common Council on April 6,2015 was an interim solution that may not be adopted by subsequent r_ Mayors and Common Councils,the Core Team also recommended that City pursue outright o. replacement of the current City Charter. LO co M The remaining recommendations of the Core Team in priority order were: 1. Safety and Crime. Reduce crime significantly, increase community involvement through empowerment, and improve City appearance and creation of safe zones. 0 2. Housing. Strengthen the condition of the overall housing inventory through code enforcement,receivership programs,housing incentives for local government employees 0 and increasing home ownership rates. c° 3. Education and Workforce Development. Develop programs and internships to encourage 0 residents to apply for City jobs,pursue additional education, and upon successful completion of the collegiate programs,to stay and live in the City. _ 4. Community Engagement. Develop and implement a comprehensive program to leverage m and engage the San Bernardino citizenry including enlisting community groups to understand and share in the Plan's vision; creating a City culture of community engagement; Cn leveraging resources to clean up the City; showing visible improvements to infrastructure and City gateways, etc. E S. Business Development and Partnerships Provide incentives and programs for new M business to locate in the City or current businesses to expand,review and streamline City a regulations and processes to assist businesses and create new partnerships and tools to revitalize the local economy. 6 Public Relations. Develop programs to highlight the right things about the City,work with local media to produce more positive coverage,increase public engagement, and expand usage of the community access television channel. The City leadership team(city manager and department heads)took this direction from the Core Team and developed programmatic strategies to-achieve the goals in the Preliminary Strategic Plan. The Long Range Financial Plan includes some of these strategies,but it will take some time and continued dedication to a strategic approach, along with continued commitment to developing a Page 53 Packet Pg. 1325 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court modern and responsive government and management system for this initial effort to be fully operationalized These initiatives were discussed with the Core Team on April 24 and the results of this discussion are contained in the Preliminary Strategic Plan attached to this document. It will take several years to make significant progress in funding these critically needed improvements but the Strategic Planning process has given the City a roadmap. It is anticipated that further detail on funding of initiatives will be contained in the 2015-16 City budget. The City of San Bernardino is currently not a sustainable and viable service delivery organization. In order to meet the confirmation standards of service solvency and sustainability long after bankruptcy exit,the City needs to implement and find ways to fund the recommendations found in San Bernardino's Strategic Plan. It is crucial to emphasize that this plan heavily relied on community engagement and input, a standard practice in local government,but also one suggested Q by creditors in the bankruptcy case,and it was adopted by the Common Council of San Bernardino. o These factors make the Strategic Plan a key guiding light in terms of the development of this Plan of Adjustment. a Service Realignment- Contracting Services co 00 The City continues to provide many core service functions to the public using its employees. With the continued escalation of employee retirement costs under CalPERS,the cost of providing 0 services using City staff has increased when compared with costs of providing services through 0 contract services. Due to its decades-long management and operational inefficiencies as well as its current Charter,the City has been unable to cost-effectively manage its operations. Therefore,to reduce its costs of operations on an ongoing basis, San Bernardino must consider alternative service delivery methods. 0 San Bernardino is currently providing a number of services in house which can be more cost- effective when contracted with other agencies or private entities. Contracting some or all of the m services in Table 25 will allow San Bernardino to reduce its costs while continuing to provide equivalent(and likely improved) levels of service to the public. Contracting for service delivery is N well established in Southern California, and indeed some jurisdictions,known as contract cities, deliver the vast majority of services by contract. All the services discussed in this section are E commonly contracted by cities, and reduce overall expenditures. Z Q The following are services the City should contract to the private sector including cost saving opportunities in the major service areas. Page 54 Packet Pg. 1326 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 25. Estimated Cost Savings and Efficiency Gains from Contracting Specified City Functions Estimated (Ongoing)from Contracting' Opportunity Contract Fire Department' $9,000,000 or Significant more Fleet Maintenance2 $400,000 $580,000(Various funds) Significant Waste Management Significant $1,280,000 to$1,780,000 Street Sweeping Significant Q (Integrated Waste Management Fund) E Right-of-way Clean-up Moderate N Graffiti Abatement $132,600 Moderate a Q Traffic Signal Maintenance $118,000(Gas Tax Fund) Moderate o c Street Maintenance(Pothole $150,000 to$300,000 repair and Capital Projects) Significant o- M Custodial Maintenance $150,000 Moderate M Soccer Complex Management/ $240,000 to Moderate L Maintenance $320,000 'In 2012,the City of Santa Ana contracted with Orange County Fire Authority(OCFA)for fire protection services.The City obtained v savings of 18%-21%($8.7-10 million)of the Fire Department's annual budget.This preliminary estimate for San Bernardino incorporates the estimated cost savings from contracting fire and EMS service delivery to an outside agency and implementing a o variety of service efficiencies identified in the Citygate Study. r_ «5 2Estimated cost savings do not include savings from avoiding fleet replacement costs,the costs of fleet maintenance and part-time d staffing costs. c 3 Excludes Water Department fleet Ls c Fire Department-According to the City's FY 2014-15 adopted budget, the Fire Department is m projected to cost$31.5 million or 24% of the City's General Fund. A $2 million adjustment was required at mid-year for additional overtime expenditures. Fire expenditures per capita are higher rn than the average of peer cities ($141 per capita compared to a peer average of$134) as is the number of fire department personnel (0.74 per capita compared to the peer average of 0.58). This is s due to fire station configurations, the service delivery method for high medical call volumes, and deployment choices. Many cities contract for fire protection and EMS services. In fact, several Q cities of the same general size as San Bernardino save money as a result of this service delivery approach. These contracts are commonly with regional fire service providers such as the San Bernardino County Fire Department,which serves a number of cities in San Bernardino County or the California Department of Forestry and Fire Protection(CalFire), which serves 150 jurisdictions in the State including several in San Bernardino and Riverside Counties. Typically these contract approaches can be significantly less expensive as a result of economies of scale and in the case of CalFire an alternative scheduling approach. Page 55 Packet Pg. 1327 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court The City has issued a Request for Proposal(RFP) for fire services and is expecting proposals on May 20, 2015. The City has invited both the County and CalFire to respond, as well as neighboring cities and private service providers. In addition,the status of the fire fleet is poor and the Fire Department budget does not include funding to adequately address the costs of maintaining or replacing its fleet. Fleet Maintenance-The City has been financially unable to replace its vehicles and equipment in accordance with industry standards or provide an effective fleet maintenance operation. About 479 units,representing 56%of the City's total fleet, are currently due or past due for replacement at an estimated cost of more than$41 million. The aging fleet has resulted in a significant burden on the understaffed fleet maintenance employees who must contend with an aging fleet and an inefficient E fleet operation. (The division has been without the leadership of a qualified fleet manager for U) several years). Deferred fleet maintenance also puts the City at risk for compliance with state- a mandated equipment and vehicle inspections. o Waste Management- San Bernardino has a separate enterprise fund(non-General Fund) designated a. for solid waste and recycling services. The fund also supports two related services, street sweeping and clean-up of the City's rights of way. Most municipalities in California contract with the private o sector for solid waste and recycling. With state recycling requirements that have been in place for over 15 years,refuse haulers have gradually expanded their businesses to include materials sorting, recycling,public education, and in some cases, street sweeping and other related services,working 0 in partnership with individual cities and counties. 4- 0 _ There are several large waste companies in the San Bernardino area that could provide the same services now provided by the City. These companies currently provide services to San 0 Bernardino's neighboring cities. One waste company owns and operates a materials recovery operation (a plant for receiving, sorting and preparing recyclable materials for marketing to end c users) located in the City. In addition,the more sophisticated companies use specialized routing m systems to reduce travel times and produce and closely monitor work measurements based on their CU experience. Given the expertise developed in multiple jurisdictions and by these waste companies, N and the economies of scale that larger operations can provide, it is likely that contracting these services to a private company will result in lower costs to provide the service and increased E franchise fees to the General Fund. a Soccer Complex-The City has an opportunity to contract the maintenance,marketing and operations of its Soccer Complex to an organization that may provide better marketing of the facility and a higher level of service to the public. To provide an incentive for the potential providers, the City may need to fund improvements to the existing fields and participate in marketing efforts. Other Services-While the scope of savings may not be as great,there are many other areas where the City may derive efficiencies from a contract approach. Some areas where known savings have been identified include custodial maintenance, graffiti abatement, right-of-way cleanup and traffic Page 56 Packet Pg. 1328 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court signal maintenance. Areas where savings have yet to be identified but might offer benefit include engineering, inspection, code enforcement and attorney services. New or Enhanced Revenue Opportunities As demonstrated in Figures 14 and 15, the City is about average in terms of revenues per capita and cost recovery for services provided. Figure 14. General Fund Revenues per Capita in FY 2014-15 $1,200.00 __ $1,072.47 � $1,000.00 E N 3 $800.00 ... ........... _ . .. .....___.. $619.82 $644.14 $573.77 - $600.00 $47 $573.91 $582.03 $514.70 0 $395.63 a $40000 _ M 00 $200.00 M N $0.00 _ O tea ° `eJ �° �a :ae �e co °c m 0 5a (L 0 c General Fund Revenues per Capita FY 201415 Peer Average --Peer Median L Sources:Adopted City Budgets;California Department of Finance,2014 L Note:Moreno Valley has a business gross receipts tax. m C co U) C m E t v ca r Q Page 57 Packet Pg. 1329 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Figure 15. Licenses and Permits &Charge for Services as Percentage of General Fund Revenues 16.0% 14.9% 14.0% 13.4%....._... _-_ 12.0% .........__1d:9%._..._.. 10.1% 10.0°/ ._._. _ ....... _ ...... 8.9%.. g Oq6. .. .......9.2% 8.99b;. 8.0% ......... _..._ ........ 6.0% ...... --- — ..... .. ................... __.._. ............. 5,4% c 2.0% — __ v N `tia CL MWE Licenses and Permits&Charge for Services as percent of General Fund Revenues M 00 Peer Average Sources:Most Recent CAFRs and City Budgets y Note:All figures are from FY 2014 CAFRs except San Bernardino(FY 2012)and Visalia(FY 2013). p Figures exclude business license revenues. y O While there are opportunities for the City to improve revenues from existing sources and C generate revenue from new sources as shown in Table 26, there is not significant margin for . gain. This is due primarily to a poor residential community unlikely to vote for tax or fee =_ increases. While the opportunities should be pursued for the City to be sustainable for the long term, implementing them will require some time. Some changes will require voter approval; others are fees or enhanced revenues that the City could realize with updated fee schedules, °C° better collection, and resource management. The latter, however, will require fundamental rn governance and management changes as well as technology improvements before developing a plan to pursue them. Table 26. Revenue Generation Opportunities r Estimated Current Rate or Fee Current Annual Amount Yield Revenue Generation Q Opportunity Taxes Utility User Tax 7.75%(includes $22,800,000 1%tax increase,Requires voter approval Up to (UUT) telephone,cable, $3,000,000 electric and gas) Apply existing rate to water,sewer and $6,900,000 refuse collection;a lower revenue amount could be derived while lowering the overall percentage rate Page 58 Packet Pg. 1330 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Estimated Current Rate or Fee Current Annual Amount Yield Revenue Generation Opportunity Transient 10% $2,600,000 Conduct audit of revenues received $200,000 Occupancy Tax (TOT) Real Property $1.10 for each$1,000 $400,000 Adjust tax to$5 per$1,000 of value;higher $3,600,000 Transfer Tax of value(County tax; rates are commonly observed among City receives only California Charter cities but raising existing $0.55) rate may be problematic Requires voter approval, if determined to c be legally possible. Q r U) -a Business Average per capita $6,700,000 Revise fee structure to be employee-based $1,500,000 Q License Fee receipts at$32 at$39 per capital o c Requires voter approval a 911 None None $1.69 per month per phone(household and $3,878,000 Communication businesses) °O 00 Fee Requires voter approval Paramedic $24 per year $6,000 from Increase subscriber fee to$48 per year; $690,000 (D Subscription (subscribers) subscribers; market program with goal of 50%of all 0 Fee households as subscribers $200 per call (non- $306,000 subscribers) from non- o c subscribers f6 (L Emergency Varies Unavailable Some cities charge for emergency response Up to Response Fees fees in cases of automobile accidents or $100,000 a similar responses.Typically limited to non- _ structure fire responses.Strongly opposed a) by insurance industry c CU Master Fees Varies Unavailable Review and adjust all City fees to institute $200,000 to N and Charges full cost recovery for applicable services' $500,000 Schedule ;_ Waste 8.9% $2,200,000 Require one-time payment from private $2,800,000 Management contractor for franchise. Increase annual per year and Q Franchise Fee franchise fee to 20%. $5,000,000 one-time Water/Sewer Varies Varies Update agreement with Utilities for $1,050,000 to Utilities payment of franchise fees $3,550,000 Franchise Fee per year Electricity 0.05% $922,500 The City has an old franchise agreement $922,500 Franchise Fee with Southern California Edison (SCE)which provides.5%in franchise fee to the City. Newer cities have a 1%franchise fee.3 May require voter approval Page 59 Packet Pg. 1331 6Aa n 1j City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Opportunity Estimated Current Rate or Fee Current Annual Amount Yield Revenue Generation �Other Business Not applicable None Contract business license administration $650,000 to License $900,000(in Administration each of first five years) Street None None Implement parking violations for street $200,000 to Sweeping sweeping(once or twice per month) $400,000 Parking = Violations m E Sale of former Not applicable City proceeds of residual property sales $3,900,000 redevelopment revenues over a 10- Q agency year period w. 0 property = co 1 San Jose generates$44 per capita utilizing a business license structure based on number of employees. Because San Bernardino .2 has fewer businesses and employees,it is estimated that the City would generate revenues of$39 per capita by similarly revising its schedule. M LO I The Common Council implemented a practice that reduces building permit fees by 50 percent. Fee collected do not cover the costs M of providing the service. a 3SCE has been unwilling to change its older franchises and implementation of this would be difficult. Options include increasing the y City's franchise fees by adding.5%to customer bills or requesting the California legislature to sponsor a change in legislation to 0 level franchise among cities. 4 Using a formula from a potential contractor,projected revenue represents a combination of cost savings in City staff and increase W revenues. _ It should be noted that there may be other items added to this list as legislative authorization 0 evolves. One such item of potential significance would be Ground Emergency Medical a Transport (GEMT) fee revenues. Legislation that would have provided some potential revenue c to cities like San Bernardino, that provide emergency paramedic response in advance of m ambulance arrival, was passed in 2013-14 but vetoed by Governor Brown. Another similar piece of legislation (SB534) is currently pending in Sacramento. Importantly revenue would N flow to public agencies that provide ground transport of Medi-Cal eligible emergency patients something that San Bernardino typically does not do. (The county franchised ambulance E provider provides such transport, but there may be revenue sharing potential. At this time, however, to count on such revenues would be speculative. Q Efficiency Improvements The City has struggled for at least the last two decades with governance issues and management systems codified in the City Charter. As has already been observed, this has led to a generally low level of City services and a pronounced lack of satisfaction from residents as validated in the Strategic Planning process. This fact coupled with the fact that San Bernardino does obtain an average level of revenues suggests that service delivery efficiency is an issue. In a 2008 report, Management Partners identified a number of efficiency improvements that have yet to be implemented and others have been identified as part of the current high-level organization Page 60 Packet Pg. 1332! t... &A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court assessment. Table 27 summarizes a number of examples of opportunities which the City will pursue as part of the Plan's implementation. Undoubtedly there are many more opportunities than just those noted here. The key to further definition and implementation will be a commitment to modernizing the organization. Table 27. Examples of Efficiency Improvements Ongoing Efficiency Improvements ate.• 30, Establish a centralized bad debt collections operation(by contract) $75,0001 Update the cost allocation plan every two years $200,000 0 Consolidate the duties, responsibilities and resources(including funding $130,000 E N and staff)of the Civil Service Administration and Human Resources Department into a single Human Resources Department Q 4- 0 Implement a light-duty program for City firefighters(if the City continues $75,000 to$200,000 0- to provide fire service) co Conduct Proposition 218 elections to increase assessment district fees to $150,000 00 recover actual costs (General Fund and other funds) Open a consolidated City impound yard $200,000 to$500,000 > 0 U d Amend the City Charter to allow the municipal election cycle to $270,000 0 consolidate with state and other elections,a practice followed in most M California cities,and one found to increase voter turnout and reduce c costs per voter E Amend City Charter to authorize design-build contracting. $500,000 to$1,000,000 M F (General Fund and other funds) m Total $1,600,000 to$2,525,000 R 'Establishing a centralized bad debt collections operation would also generate approximately$100,000 in one-time revenue. it d The Plan of Adjustment assumes that some efficiency measure will be identified and implemented E each year. Q Financial Forecast Underlying the Plan This section provides financial context and discusses the constraints facing the City of San Bernardino and how the City proposes to address them over time. The City has developed a financial model based on current and historical data to understand its financial and service delivery constraints. This, in turn, provides the platform for the 20-year Long-Range Financial Plan for the General Fund. Forecast Assumptions The financial portion of the Plan includes the following sections: Page 61 Packet Pg. 1333 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Baseline Budget—Revenue projections are based on current revenue sources. Expenditure projections are based on the current FY 2014-15 budget level of staffing, including future salary adjustments pursuant to the City's Charter for sworn public safety staff and cost-of-living increases for non-sworn staff to remain competitive, and projected pension rate changes. These costs are inclusive of the labor agreements negotiated during the City's Bankruptcy Case as well as the rejection of the San Bernardino Police Officers Association and San Bernardino City Firefighters Association Memorandums of Understanding which have since been approved by the court and implementation of new terms and conditions of employment. Services, supplies and program support assume inflationary growth. Debt service is based on original amortization schedules and projected contributions. The baseline budget is the status quo and the starting point,but it is neither viable, as it is not service-solvent nor sustainable,because it is cash insolvent. Sustainability is addressed in the following two sections. E N 7 Fiscal and Service Stabilization—This section contains strategic investments added to the status Q quo baseline budget, including funding for working capital and modest increased contributions to 0 deferred maintenance, deferred information systems and fleet replacement, and restoration of internal service fund reserves (workers' compensation and liability insurance reserves). Because a. the City has not funded information systems and fleet replacement in several years, many of these M LO systems and vehicles are well beyond their useful life,requiring an aggressive replacement co schedule. Their continued deferral poses risks to service delivery. Additionally,the City must '1 address its approximately$200 million backlog of infrastructure maintenance to be economically healthy. While the fiscal stabilization budget does not meet all of the City's needs, it does set the 0 City up to adequately provide basic municipal services. For this reason,the fiscal stabilization budget is service-solvent. Nevertheless,the fiscal stabilization budget, absent restructuring savings, c remains unsustainable from a budgetary and cash standpoint due to the higher level of spending. This section also allocates funding to implement programmatic strategies the Core Team 0 recommended to the City through the strategic planning workshops. Specifically,this section makes available funding for crime reduction strategies, improved housing inventory,workforce = development,community engagement, economic and business development and public relations, m starting in FY 2020-21. Restructuring Savings—This section includes proposed savings that require Chapter 9 protection to be implemented for pension and labor agreements,retiree medical benefits, debt obligations, and E lawsuit claimants. This prudent approach is necessary to resolve the City's insolvency issues. This section also includes proposed service restructuring accomplished through contracting with private Q vendors along with additional efficiencies, cost recovery and income from increased fees for services. With all of these savings and new revenues,the City realizes a balanced budget that is solvent from a service perspective. Tables 28 and 29 summarize these elements of the General Fund budget and show the resulting net surplus or shortfall projected to remain after each element over the next 20 years. The entire long- range forecast is shown in Attachment IV. The modeling assumptions,which are detailed in the discussion of revenues and expenditures later in this document,have to be realistic, given the long- term nature of City obligations,and the pressure to restore City services and pay creditors. Page 62 Packet Pg. 1334 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Given the forecast period of 20 years, the estimates are inherently subject to significant variability. Even a small change in assumptions can have a major impact over this period. However, revenues are likely to fall within the range of plus or minus 0.5% of the forecasted annual growth rate. This potential variance compounds annually, and thus over time the potential range of revenue widens. However, as Figure 16 shows, even the optimistic end of this revenue range is well short of the resources needed to meet the projected expenditure levels, and it would be imprudent to count on optimistic revenue estimates to try to balance this financial plan. The forecast is considered the most likely outcome,but is still subject to risks based on the assumptions made. Figure 16. Long-Range Financial Plan With Restructuring Savings (FY 2014-15 to FY 2023-24) Revenue Range Before Restructuring a=i E Baseline Expenditures OFiscal/Service Stabilization -Revenue Forecast 1 $250 ....... .....--- _ 'a Optimistic to Pessimistic Revenue Range I Q r- O $200 �- co o. o $150 � _ ---- in NON 00 g $100 O 0 U $50 _ _ _ _ W O _ t4 $D .�.......1 �..._._..i._ r .....;-- - .-. ..._...�... r ..... ..r--r.._. _......, IL 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 C L _ Table 28. Long-Range Financial Plan With Restructuring Savings (FY 2014-15 to FY 2023-24) �+ m ($in millions) 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 N Total Revenue $126.3 $129.9 $130.3 $132.3 $136.6 $140.8 $144.5 $146.3 $143.2 $143.7 _ Total Expenditures 124.0 130.2 132.2 137.4 142.5 148.7 151.3 155.3 159.4 162.8 m E Net Surplus(Deficit) 2.3 (0.3) (1.9) (5.1) (5.9) (7.8) (6.8) (9.1) (16.2) (19.1) v Deferred Obligations 0.0 14.7 0.4 0.4 0.4 0.4 0.0 0.0 0.0 0.0 Fiscal&Service Stabilization 0.0 13.0 15.6 15.1 15.3 15.7 13.4 14.0 12.6 12.8 'Q Adjusted Surplus(Deficit) 2.3 (28.0) (17.8) (20.6) (21.6) (24.0) (20.2) (23.1) (28.8) (31.8) Restructuring Savings 0.0 31.2 20.6 21.7 21.7 21.7 22.2 24.8 31.4 31.7 Net After Restructuring 2.3 3.2 2.7 1.1 0.1 (2.3) 2.0 1.7 2.7 (0.2) Beginning Fund Balance 9.4 11.7 14.9 17.6 18.7 18.8 16.5 18.5 20.2 22.9 Ending Fund Balance 11.7 14.9 17.6 18.7 18.8 16.5 18.5 20.2 22.9 22.7 Bal as%of Total Adj Expend 9.4% 11.8% 13.8% 14.2% 13.8% 11.5% 13.0% 13.8% 15.4% 14.9% Balance Goal(15%of TotalExp) 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% Page 63 Packet Pg. 1335 6Aa City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 29. Long-Range Financial Plan With Restructuring Savings (FY 2024-25 to FY 2033-34) ($in millions) 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34 Total Revenue $145.6 $150.5 $155.6 $160.0 $164.4 $168.4 $169.1 $171.4 $177.3 $183.2 I Total Expenditures 167.1 171.1 175.7 180.3 185.1 190.0 195.1 197.6 202.9 206.2 Net Surplus(Deficit) (21.5) (20.6) (20.1) (20.3) (20.6) (21.6) (26.0) (26.2) (25.6) (211) Deferred Obligations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 I Fiscal&Service Stabilization 12.9 11.9 13.3 13.0 13.0 12.2 13.0 13.0 13.1 13.3 Adjusted Surplus(Deficit) (34.4) (32.5) (33.3) (33.3) (33.7) (33.8) (39.0) (39.1) (38.7) (36.3) Restructuring Savings 32.8 33.3 34.3 35.1 36.0 36.9 37.3 38.3 39.4 40.6 Net After Restructuring (1.5) 0.8 0.9 1.8 2.3 3.0 (1.7) (0.8) 0.7 4.3 C Beginning Fund Balance 22.7 21.2 22.0 22.9 24.6 26.9 29.9 28.2 27.4 28.1 Ending Fund Balance 21.2 22.0 22.9 24.6 26.9 29.9 28.2 27.4 28.1 32.4 N Bal as%of Total Adj Expend 13.6% 13.9% 14.0% 14.7% 15.7% 17.1% 15.6% 15.0% 15.0% 17.0% a Balance Goal(15%of Total Exp) 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% Q w 0 The City will need to be carefully managed to make sure the General Fund balance maintains a prudent level of reserves over time. To weather the impacts created by near-term increases in ° Ca1PERS rates and to address much-needed deferred maintenance and equipment replacement, the LO City will have to exercise disciplined expenditure control through priority-based budgeting. T. Figure 17 compares the fund balance after restructuring to the City's reserve goal of 15% of total o expenditures. Small changes to base revenues, compounded over time, can significantly improve or U worsen the fund balance outlook and capacity to address unmet needs. For example, Figure 18 4- 0 compares what the fund balance would look like after the proposed restructuring if the City's a annual revenue growth rate was consistently 0.5%better or 0.5%worse than projected under the . baseline budget. L M _ L Figure 17. General Fund Balance Compared to Reserve Goal m c General Fund Balance Projected Cash Balance -*-15%of Total Exp(Reserve Goal) $35 E $ Y 30 Q $25 0 $20 $15 ..._...-- . _ - $10 $5 $0 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Page 64 Packet Pg. 1336 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Figure 18. General Fund Balance Under Alternate Revenue Growth Scenarios,After Proposed Restructuring Target Balance Level(15%of Total Expenditures) —i--Balance at Optimistic Revenue Growth(forecast rate+0.5%) Balance at Pessimistic Revenue Growth(forecast rate-0.5%) Balance at Forecasted Revenue Growth Rate $80 – -- $70 ---...................------ -- --- $6p ......... o_ $40 — -- ------ y $30 – $20 N 3 'Q $10 r a $0 r 7....... . 4- -$10 ........ -$20 - n. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 M Co M_ Baseline Assumptions The Long-Range Financial Plan is based on the City's FY 2014-15 budget. Revenue projections o are based on prior year trends and current revenue sources, using estimates from the City's property a and sales tax auditor. Expenditure projections are based on current budget staffing levels. o Projections include a 2% annual cost-of-living increase for non-sworn employees and a 3% annual increase for sworn. Overtime for sworn is also increased at 3%. All other costs are increased at 2% a to 3%, including inflationary increases for materials, supplies, and contract services. Pension costs are predicated on an analysis of employer rates by an independent actuary. Budgeted expenditures for debt service and lease payments are based on original amortization schedules and projected contributions from other funds. °�° �a With the budgeted increases in salaries, benefits, operating expenditures, and near-term bankruptcy costs,the city is cash insolvent. The baseline budget forecast does not include significant costs for E deferred capital maintenance, fleet needs, and working capital. The following summary provides U the key revenue and expenditure assumptions on which the forecast is based. a Assumptions were developed with an understanding of California's cyclical economy. Therefore the revenue estimates represent a good-faith estimate of the resources most likely to be available to the City over time. While small changes in the assumptions can have a significant impact over the course of a 20-year forecast, we believe this approach is prudent and appropriate given the City's desire to meet its service needs while addressing the interests of its creditors. Major Revenue Sources Figure 19 shows the distribution of a projected $126.3 million in General Fund revenues for FY 2014-15. The top three sources alone,property tax, sales tax (including Measure Z) and the utility user's tax, comprise 72% of total revenues. With a forecast extending 20 years, it is important to Page 65 Packet Pg. 1337` City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court include economic downturns. Since 1928 on average there has been an official recession approximately every seven years, so this forecast builds in assumed modest recessions in 2017 and 2024 (2% to 5%reductions from forecasted rates of growth, followed by a recovery period of two to four years, with property tax impacts lagging by one year due to the annual lien date for setting value). Figure 19. FY 2014-15 General Fund Revenues by Type I nterfu nd Transfers Other Revenue $2.9M PermitsJFees $7.7M $11.8M 2.3% 9_4% Property Tax d 6.1% $29.6M E Intergovt 23.5% $3.0M C 2.4% Q 4— Franchises O $3.4M = 2.7% $126.3M Total o. Business Tax M $6.7M u0 00 5.3% v Utility User Tax Sales Tax $22.8M $38.4M > O 18.1% 30.4% V 0 CD IY v— O C Property Tax o The property tax revenue base reflects varying uses of land in the City. Typical of a large, older c community, the City is fairly balanced with 52%of taxable value residential, 19% commercial, and 15% industrial. Despite the diversity in property tax value, 80% of the City's taxable parcels are residential,which points out the relatively low assessed value of the City's housing stock when m compared with commercial and industrial uses. The high ratio of residential parcels is a measure of in service demand and an indication that a sustainable and resilient revenue base is vital to support essential City services. Property tax comprises 23.5% of total FY 2014-15 General Fund revenues, and includes property tax in lieu of vehicle license fees (VLF). With the improving economy, property values have begun a to recover over the past year,but not at the recovery levels of other regions in California. San Bernardino's property tax revenue collections peaked at approximately $30.2 million in FY 2008- 09, and then fell sharply for the next two fiscal years. As the FY 2014-15 budget forecasts continued slow recovery in this large revenue source, the projected$29.6 million is still, six years later, approximately 2%below the peak revenue level. Once the Proposition 8 reappraisals are completed, there will be no more "catch-up"valuation increases, and value growth will be limited to the Proposition 13 inflator(the lesser of California Consumer Price Index or 2%), along with ownership transfers and new construction. Page 66 Packet Pg._1338 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Going forward, the forecast assumes secured property tax growth of 5.5% for FY 2015-16, 2.8% in FY 2016-17, and-2.2% in FY 2017-18, when the impact of a 2017 recession would first be reflected in revenues. The compound annual growth rate (CAGR) through FY 2033-34 is projected at 3.1% for secured roll taxes, and 3.5% for all property taxes, including the VLF adjustment amounts and residual tax increment. The latter represents anticipated distributions of residual tax revenues resulting from the State of California's collection of revenues previously assigned to redevelopment agencies. After transferring funds to agencies to meet ongoing dissolution costs, monies are redistributed to successor agencies. Table 30. Property Tax Revenue Forecast a� ($in millions) 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Secured Tax Revenue $9.6 $10.1 $10.4 $10.1 $10.5 $11.0 $11.5 $12.0 $12.4 $12.8 rn Growth Rate 5.5% 2.8% -2.2% 3.9% 4.0% 4.6% 4.6% 3.1% 3.2% O Total Revenue incl VLFAA $29.6 $32.0 $33.0 $32.4 $33.8 $35.2 $36.9 $38.7 $40.0 $41.3 Q v- Growth Rate 8.0% 3.1% -1.8% 4.2% 4.3% 4.8% 4.8% 3.4% 3.4% _ 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 d Secured Tax Revenue $12.5 $13.1 $13.7 $14.4 $15.1 $15.6 $16.1 $15.8 $16.5 $17.2 Growth Rate -1.8% 4.2% 5.2% 4.7% 4.8% 3.3% 3.3% -1.7% 4.4% 4.4% LO Total Revenue incl VLFAA $40.7 $42.5 $44.8 $47.0 $49.3 $51.0 $52.8 $52.0 $54.4 $56.9 Growth Rate -1.6% 4.4% 5.4% 4.9% 5.0% 3.5% 3.5% -1.5% 4.5% 4.5% d O Sales Tax Sales tax is another important revenue stream for San Bernardino and is projected to account for c 30.4% of General Fund revenues in FY 2014-15. Sales tax includes the 0.75% local tax rate, 0.25% a "triple flip"tax rate paid by the state through the annual property tax remittance from the county o (which reverts to the City in 2016), Proposition 172 public safety sales tax allocation, and Measure Z's 0.25% safety sales tax. The total sales tax rate in San Bernardino is 8.25%, which is at the 55tH percentile of rates statewide (weighted for population, the statewide rate among cities is 8.46%). m _ Like property taxes, sales tax receipts have declined significantly due to the general economic W downturn. They are also subject to increased spending on non-taxable services and via the internet, which will slow the rate of revenue growth in future years. Taxable sales as a percent of personal E income have dropped from a high of 53% in 1979 to 33% in 2012, according to the California Legislative Analyst, a trend exacerbated by an aging population. California's taxable sales today, Q adjusted for inflation, are 28% lower than in 2000. Census figures also show that 2013 California real median household income, adjusted for inflation, has fallen 10% from its 2006 peak,which is nearly back to its 1997 level. Excluding Measure Z and Proposition 172, sales tax revenues peaked in FY 2005-06 at$36.7 million,but plummeted in FY 2009-10 to $20.4 million. At $30.5 million in FY 2014-15, this portion of the overall sales tax is still 17%below peak year revenue. The estimates for FY 2014-15 were supplied by HdL Companies, the City's sales tax consultant. The forecast assumes overall sales tax growth of 1.8% for FY 2015-16, a decline of 0.8% in FY 2016-17 due to the assumed recession with recovery in the ensuing three years. The CAGR through FY 2033-34 for the local Page 67 Packet Pg:1339 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court I% tax would be 3.0%. Revenues, however,will be negatively impacted by the expiration of the Measure Z sales tax late in FY 2021-22. Unless, extended,this will reduce annual sales tax revenues by approximately$8.6 million (based on the last full year). Table 31. Sales Tax Revenue Forecast ($in millions) 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Bradley-Burns Revenue(1%) $31.5 $32.1 $31.9 $33.4 $35.1 $36.9 $38.1 $39.3 $40.6 $39.8 Measure Z Revenue(0.25%) $6.9 $7.0 $6.9 $7.2 $7.5 $7.8 $8.1 $6.2 $0.0 $0.0 Total Revenue $38.4 $39.1 $38.8 $40.6 $42.6 $44.7 $46.2 $45.5 $40.6 $39.8 Growth Rate 1.8% -0.8% 4.6% 5.0% 5.0% 3.2% -1.3% -10.9% -1.8% 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34 Bradley-Burns Revenue(1%) $41.5 $43.5 $45.6 $47.0 $48.4 $49.8 $48.8 $50.7 $53.1 $55.5 N Measure Z Revenue(0.25%) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 O Total Revenue $41.5 $43.5 $45.6 $47.0 $48.4 $49.8 $48.8 $50.7 $53.1 $55.5 Q Growth Rate 4.1% 4.9% 4.8% 3.0% 3.0% 3.0% -2.0% 3.9% 4.6% 4.6% O C O 0. Utility Users Tax(UUT) The UUT is a 7.75% tax on gas, electric,telecommunications, and cable TV. This rate compares to LO a statewide average of 5.3% for the 30% of cities that impose a UUT. The UUT is the third largest revenue source in the General Fund(18.1% of the total), and is projected to raise $22.8 million in FY 2014-15,which is 9.2%below peak year revenue of$25.1 million in FY 2006-07. This o reduction is due to several issues, including the City's exposure to foreclosures, which were 3.5 times above the national average; changing technology trends that are reducing taxes on cable and - telecommunications; and energy conservation efforts that affect the tax revenue from gas and a electric customers. Assuming an improvement in foreclosures and a slowly recovering economy, o forecasted revenue growth is 4.5% in FY 2015-16, with a 2.0% decline in FY 2016-17, exacerbated by the projected recession. The CAGR through FY 2033-34 for the UUT is projected to be 0.6%. This rather anemic growth rate is attributable to the technology and conservation trends noted m above, which is being assumed by firms that do UUT forecasting. (The San Bernardino UUT does not include water, sewer or refuse, although 56% of cities with UUTs statewide do tax one or more rn of these activities. Including these utilities would allow the City to set the rate lower than at present, but still high enough to net millions in additional revenue to the City. Such action would require ;_ voter approval.) w Table 32. Utility Users Tax Revenue Forecast Q ($in millions) 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Utility Users Tax Revenue $22.8 $23.9 $23.4 $23.6 $23.9 $23.9 $24.0 $24.1 $24.1 $23.8 Growth Rate 4.5% -2.0% 1.0% 1.0% 0.2% 0.2% 0.3% 0.4% -1.6% 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34 Utility Users Tax Revenue $24.1 $24.4 $24.5 $24.7 $24.9 $25.0 $24.7 $25.1 $25.5 $25.8 Growth Rate 1.4% 1.4% 0.5% 0.6% 0.6% 0.7% -1.3% 1.7% 1.7% 0.8% Page 68 Packet Pg. 1340 6Qa' ° City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Other Revenue Sources The remaining General Fund revenue is comprised of the following sources. • Transfers In and Reimbursements-These revenues account for funds received by the General Fund from other City funds through a combination of means including operating and capital fund overhead charges, transfers, and reimbursements for services rendered. The revenues in this category can vary significantly each year and are influenced by the following: changes in staffing costs, staffing levels, and the relative proportion of services delivered to other funds; the availability of funding in other funds that are appropriate to transfer to the General Fund; and the performance of gas tax revenues, which are transferred to the General Fund to reimburse the City for eligible expenditures. Growth in these revenues growth is projected to remain flat over the projection horizon. E • Business Registration, Licenses and Permit Revenues-These revenues are generated from payments for the issuance of business licenses, building permits, fire permits, and Q miscellaneous health and safety-related licenses and permits. Forecasted annual revenue o growth of 2%reflects changes in the overall economy and expected slow growth in coming C years given local economic conditions. 0- • Other Revenues-These revenues include Fines, Forfeitures, and Penalties; Transient LO Occupancy Tax; Other Revenue; and Use of Money and Property. While some of these M revenue sources are highly dependent upon market performance, such as the Transient Occupancy Tax and interest earnings, economic conditions do not drive the majority of these revenues. 0 (i Table 33. Other Revenue Forecast o a in millions) 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 - Other Revenue $35.4 $34.9 $35.1 $35.7 $36.4 $36.9 $37.4 $38.0 $38.5 $38.8 = Growth Rate -1.4% 0.6% 1.7% 1.8% 1.5% 1.3% 1.5% 1.3% 0.7% E 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34 Other Revenue $39.4 $40.1 $40.7 $41.3 $41.9 $42.5 $42.8 $43.5 $44.3 $45.0 m Growth Rate 1.7% 1.8% 1.4% 1.5% 1.4% 1.5% 0.6% 1.8% 1.7% 1.6% @ co C d Revenue Gap E Similar to other municipalities in California, the Great Recession had a significant effect on the City's ability to balance revenues against expenditures. Prior to the recession, the City was able to a meet its financial obligations with annual revenues and funds on hand. Since the City's peak General Fund revenue of$133.3 million in FY 2007-08, it has experienced severe losses in key areas such as sales tax, property tax, franchise fees, the UUT, permits, and funds transferred from the Economic Development Agency (EDA). As a result, meeting the City's financial obligations came at the expense of decreasing service levels. With continued declines in revenues and increased operating expenditures, the City has reduced its workforce and implemented several reductions in expenditures which have further reduced essential services. Despite the City's efforts, all reserves have been exhausted and now the City is faced with necessary restructuring to meet its obligations and to deliver essential services to the community. Page 69 Packet Pg. 1341 6Aa�" City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Nrt As supported by the City's forecast, actual revenues have yet to rebound to pre-recession levels. Based on projected trends revenues will not reach such levels until approximately FY 2019-20. Therefore, it is unlikely that the City will ever achieve the trend level of growth assumed in the pre- recession period. Many of the expenditures, such as all the labor, debt and service obligations taken on during the last 10 to 15 years assumed that consistent annual revenue growth would be achieved. This failure is at the heart of the bankruptcy. Table 34 shows the magnitude of this revenue gap from the 2009 perspective of a City that had not yet seen the worst from the Great Recession's negative impact on local government revenues. The City had just experienced 5.3% average annual growth over the past 11 years,with a peak growth rate of 12.2% in FY 2005-06. Assuming a continuation of that average annual growth rate as the best-case scenario,the resulting annual revenue gap would be $48 million in FY 2014-15, and E would grow to $84 million by FY 2019-20. A growth rate of 3.5% (two-thirds of the best-case outlook, and exceeded in seven of the prior 11 years from FY 1997-98 through FY 2008-09) might Q have been assumed to be"most likely" outcome, and the resulting revenue gap under that scenario - would be a$32 million in FY 2014-15, rising to $46 million by FY 2019-20. In that 2009 context, growth of only 2% would probably have been seen as a worst-case scenario over the long term, o. which leads to the lowest gap, $18 million in FY 2014-15 and just higher than that by FY 2019-20. LO 00 Table 34. General Fund Revenue Gap between Reality and Pre-Recession Expectations ($in millions) 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 O Actual Revenues(4) $74.3 $80.4 $87.5 $90.3 $95.5 $100.9 $113.2 $119.6 $130.3 $133.3 $125.9 v Growth Rate 3.0% 8.1% 8.8% 3.2% 5.8% 5.6% 12.2% 5.7% 8.9% 2.3% -5.6% � O 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 _R Actual/Forecast Revs(4) $116.7 $118.5 $116.2 $114.2 $115.9 $123.4 $127.0 $127.4 $129.4 $133.7 $137.9 �- O Growth Rate -7.3% 1.6% -2.0% -1.7% 1.5% 6.5% 2.9% 0.3% 1.6% 3.3% 3.1% Pre-Recession Expectations: Best-Case(1) $132.5 $139.5 $146.9 $154.6 $162.8 $171.4 $180.5 $190.0 $200.0 $210.6 $221.7 L Growth Rate 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% CO Most-Likely(2) $130.3 $134.9 $139.6 $144.5 $149.6 $154.9 $160.4 $166.0 $171.9 $177.9 $184.2 = ca Growth Rate 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% N Worst-Case(3) $128.4 $130.9 $133.6 $136.2 $139.0 $141.7 $144.6 $147.5 $150.4 $153.4 $156.5 Growth Rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% E Resulting Revenue Gap: v Pre-Recession Best-Case (15.8) (21.0) (30.7) (40.4) (46.9) (48.0) (53.5) (62.6) (70.6) (76.9) (83.8) r Pre-Recession Most-Likely (13.6) (16.3) (23.4) (30.3) (33.8) (31.5) (33.4) (38.6) (42.4) (44.2) (46.3) Q Pre-Recession Worst-Case (11.7) (12.4) (17.4) (22.0) (23.1) (18.3) (17.6) (20.0) (21.0) (19.7) (18.6) (1)Starting FY 09/10 assumes average annual growth rate over prior 10 years(FY 97/98 to FY 08/09)as a reasonable"best-case" (2)Starting FY 09/10 growth rate is two-thirds of"best-case"growth as a reasonable"most-likely"outcome (3)Continues FY 08/09 growth rate as an assumed"worst-case"scenario (4)Excludes transfers in,which may vary widely from year to year Expenditure Assumptions The widening gap between ongoing revenues and annual expenditures resulted from several factors, including loss of revenues due to the Great Recession and increases in labor and retirement costs. For several years, the City used reserves and other sources of one-time funding to maintain Page 70 Packet Pg. 1342 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court solvency. However, such alternatives were exhausted during FY 2009-10 and FY 2010-11. Consequently the City was forced to make severe reductions in staffing and services,resulting in an overall decline of$20 million in General Fund expenditures, from$144 million in FY 2008-09 to $124.0 million in FY 2014-15. Figure 20 shows the major elements of projected FY 2014-15 General Fund expenditures by type. Personnel costs comprise 67% of total expenditures. Starting in FY 2015-16 the forecast builds in deferred obligation payments to Ca1PERS, and approximately $10 million in annual fiscal and service stabilization costs, such as rebuilding insurance reserves, reducing the backlog of deferred maintenance, and funding the replacement of vehicles and technology required by the City organization to sustain the current level of services to the public. Figure 20. Projected FY 2014-15 General Fund Expenditures by Type 0 Transfers Out E $2.3M Capital/Debt 19% $3.2M — Q 2.6% +- Internal Services O $14.9M = 12.0% O a. Contracts $124.OM Total V) 8.6% S� N 0 U Maint/Operations Personnel O $9.4M $83.5M 0 7.6% 67.3% _ t4 a 0 _ E Compensation M _ The City's budget is heavily focused on public services. Government service delivery is labor- m intensive,relying on the City workforce to patrol the streets,respond to emergencies,provide libraries and community programs, and deliver the other direct and supporting services of San Bernardino. The Long-Range Financial Plan assumes the current level of staffing, despite increasing workload demands. Thus,the City must continue to seek service delivery efficiencies to E continue to provide essential and necessary services within its available resources. Q This forecast assumes public safety employees continue to receive salary increases at 3% annually pursuant to City Charter Section 186. While this is a revised estimate,up from the prior 2% assumption, it is reflective of increases in the marketplace that under the Charter would have to be given to safety employees. To remain competitive in the workforce, and to address zero salary adjustments over the past five years for non-safety employees, salary compensation for non-safety employees is forecasted to grow by 2%annually. As a result of these forecasted adjustments, pension costs, overtime and workers compensation contributions also increase,as they are a direct function of overall compensation. Page 71 Packet Pg. 1343 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Pension Costs In general,the increasing costs of pension benefits are attributable to a dramatic increase in the Plans' unfunded liabilities. There are four major causes of this increase in unfunded liability: • Timing of increases in benefits beyond the basic plans,which were not paid for during the working lives of employees receiving benefits, including making the benefits retroactive; • Past investment losses by CalPERS, leading to a failure to meet earnings expectations on Plan assets; • Actuarial changes in assumptions based on experience, including increased longevity; and • An increase in the number of retirees and the size of their pensions. To forecast future retirement costs, the City retained the actuarial consulting firm of Bartel & Associates to prepare a 20-year forecast based on the following assumptions: E • Rate smoothing and amortization changes previously adopted by CalPERS. 0 • Adjusted mortality improvement assumptions (retirees living longer)previously adopted by Q CalPERS. o • Reduced City-reported payroll compared to CalPERS assumptions. • Reduction of 0.25%in the PERS discount rate for interest earnings (previously proposed by a CalPERS staff but not adopted by the board); assumes CalPERS ultimately approves a more LO risk-averse investment strategy that reduces potential volatility in employer rates,but results in lower investment returns,which is passed on to employers in the form of higher rates. L • Elimination of Employer Paid Member Contribution(EPMC)benefit. > 0 • Anticipated savings from Public Employee Pension Reform Act(PEPRA)changes (not incorporated into Ca1PERS's own rate projections). o • Employee cost sharing at Pendency Plan levels(PEPRA allows cities to impose higher _o employee contribution rates starting in 2018,but this assumes early implementation). 0 0 c �a According to Bartel&Associates, CalPERS contribution projections for miscellaneous employees will rise from the current(2015-2016) rate of 26.3%to 33.8%in 2020-2021. For safety employees, contribution rates will climb from the current(2015-2016)rate of 33.8%to 56.9%in 2020-2021. m co Despite a 5%reduction in the City's unfunded liability through the implementation of its Pendency c Plan,the City's Miscellaneous and Safety CalPERS,plans carry an unfunded liability of$116.5 E million and$169 million,respectively,totaling$285.5 million equal to a 74% funded status. The City also provides a supplemental retirement benefit for 23 retired police safety and police safety management employees. The supplemental retirement benefit(referred to as the PARS Enhancement to 3%at 50 benefit level) is provided by Public Agency Retirement Services (PARS). As of December 31, 2014 the Plan assets were$2.12 million,with an actuarial liability of$4.91 million leaving the PARS Plan with an unfunded actuarial liability of$2.79 million. Because the PARS Plan has sufficient assets to meet its current obligations,the City will not allocate funds to pay the deferred obligation of$407,586 for FY 2014-15. The baseline forecast assumes the PARS Plan is funded on a pay-go-basis at approximately$245,000 per year. Page 72 Packet Pg. 1344 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 35 shows the projected total pension costs from CalPERS and PARS and the percentage of total General Fund expenditures that these costs represent. Ca1PERS costs,which comprise 99% of the total pension costs,will escalate steadily over the next five years under a planned schedule of employer rate increases. Pension costs are expected to peak at 19.3% of total expenditures in FY 2019-20. Table 35. Projected Pension Costs as a Percent of Total General Fund Expenditures ($in millions) 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Pension Expense $14.2 $19.3 $21.2 $23.5 $25.5 $27.5 $28.0 $28.7 $29.4 $30.1 Pension as%of Total GF Exp 11.9% 15.6% 16.3% 17.8% 18.6% 19.3% 18.8% 19.0% 18.9% 18.9% 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34 Pension Expense $30.8 $31.5 $32.2 $32.8 $33.5 $34.3 $35.0 $33.0 $33.7 $32.3 Pension as%of Total GF Exp 18.9% 18.9% 18.8% 18.7% 18.6% 18.5% 18.4% 16.9% 17.1% 15.9% vi Other Retirement Costs(OPEB) Q 0 The City's labor Memorandums of Understanding also provide for other post-employment benefits a (OPEB), specifically retiree medical and dental coverage. Generally, employees are eligible for a retiree medical insurance coverage after retirement from public service. Employees are eligible to M retire at pre-Medicare age (55 for miscellaneous and 50 for police and fire), which contributes to the o significant cost of the benefit. Both non-safety and safety eligible retirees receive a monthly benefit ranging from$112 to $450 to cover monthly premium costs for healthcare insurance.With the adoption of the City's Pendency Plan all eligible retirees are now receiving $112 per month. 0 a� The OPEB plans are funded through separate trust funds associated with the retirement plan. The c Plan has an independent actuarial analysis, which establishes the contribution rates and funding 2 levels. Unlike pension costs,retiree medical costs are limited to fixed dollar amounts. Currently, 0 the City's OPEB benefits and unfunded obligations are funded on a pay-as-you-go basis. =a L Health Care m The City offers a variety of health care options and funding levels to its employees through collective bargaining. Currently,the City's health care plan includes active employees and retirees. N i/ The City is diligently working with its health care broker to separate active employees and retirees into two plans. This will result in the elimination of the implied subsidy to retirees and a reduction E of health care costs to the City of$1.1 million in 2015. The forecast assumes health care costs will rise at a 3% annual rate. Q Other Compensation and Benefits The forecast assumes $650,000 in FY 2014-15 and $100,000 thereafter annually to fund compensated absences in accordance with current labor agreements, including vacation leave at termination which is required by California law. No adjustments regarding benefits are assumed in the forecast. Vacancy Savings The forecast assumes 4.5%vacancy savings in FY 2015-16, dropping to 3.0% in FY 2016-17 and thereafter. All authorized positions are budgeted as if filled for the entire year, and the vacancy Page 73 Packet Pg. 1345 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court cosavings credit accounts for the periods where positions remain vacant, so the result is that the budget better approximates the ultimate level of personnel expenditures. Miscellaneous Expenditures The following assumptions were made with respect to miscellaneous expenditures. • Services and Supplies—A 3.0% annual increases in costs associated with contract services, equipment,utilities, and general expenses. • Library Program Support—Continued allocation from the General Fund to support Library operations. • Debt Service and Lease Obligations—The City has substantial lease obligations for a variety of equipment and facilities including vehicles, computer software, and miscellaneous capital equipment. All secured and lease obligations are funded in FY 2014-15 and beyond based on the original amortization schedules. N • Essential Service Capital Needs—A total of$156 million is programmed over a 20-year period to address a capital maintenance backlog of over$200 million in parks,public Q buildings, right-of-way, information technology, and fleet replacement = • Working Capital—The forecast provides approximately 60 days of operating capital based a on Government Finance Officers Association(GFOA)best practice guidelines. There is a 10-year phase-in period over which the financial plan ramps up the reserve level to 15% of co total General Fund expenditures. • Deferred Obligations—To establish liquidity, the City proposes to continue to defer d obligations for trade payables, litigation, pension obligation bonds and compensated 00 absences "current deferrals" and the forecast does not allocate funds to pay for them. Payments to deferred obligations are addressed in the Creditors under the Plan of c Adjustment section of the Financial Plan. �+ a. 0 Treatment of Creditors under the Plan =_ The restructuring section of the forecast includes reductions in expenditures not yet implemented c that require the Chapter 9 process: retiree medical benefits,pension benefits, debt obligations, and m legal settlement payments. Approximately$51.7 million of the $357.9 million in potential labor savings for FY 2014-15 through FY 2033-34 already have been implemented through negotiations cn and mediation, and these savings are incorporated into the baseline personnel costs. In addition, the $15.6 million in annual compensation and service cuts that were enacted by the City through the E pendency plan are assumed to stay in effect and to gain in value of avoided costs over time. r Retiree Medical The forecast assumes retirees are placed into a separate health care plan from the active employees resulting in the elimination of the City's implied health care subsidy. This transition was made in January 2015. Implementation of this Plan will significantly reduce the City's OPEB obligations including a reduction of$350,000 in FY 2014-15. This step results in a substantial decrease in unfunded liability relative to the earlier Plan. Page 74 Packet Pg. 1346 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court CaIPERS Retirement To meet cash flow needs and ensure the continuation of essential services,the City had previously deferred payments to CALPERS of approximately $14.5 million. In a post-bankruptcy agreement, the City has committed to repaying the outstanding balance and interest and penalties as follows: • FY 2014-15: $7,239,960 principal • FY 2015-16: $7,239,960 principal • FY 2019-20: $400,000 annually in penalties and interest Supplemental Retirement(PARS) The City is currently attempting to negotiate a resolution regarding the PARS Plan. As noted previously, the PARS plan is underfunded on a long-term basis. Approximately $2.12 million remains in the PARS trust. E 0 Debt Obligations a 1996 Lease Revenue Bonds (the "96 Bonds') and 1999 Certificates of Participation (the "99 0 COPs'). Under the proposed Plan, the City will provide for the following: (i) to defease the General o Fund portion of the 1999 COPs using unexpended bond proceeds, (ii) the debt service reserve fund °- will be resized and will remain in place as security for the remaining portion of the 1999 COPS not LO defeased, (iii) any remaining unexpended bond proceeds not used for the defeasance and any cash co from the resizing of the reserve fund will be released to the City, (iv) that upon defeasance of the General Fund portion of the 99 COPs,the collateral securing the 99 COPs, the Police Station, will > be released, and(v) the balance of the 1999 COPS shall continue to be paid through the Successor 0 Agency as an enforceable obligation of the former Economic Development Agency (EDA). W 0 c The Plan also proposes that the balance of the 1996 Bonds will be paid as regularly scheduled. The o City has also requested the bond insurer provide a surety to replace the cash reserve fund. The use c of the dollars from the reserve fund release are yet to be determined. The collateral for these bonds consists of City Hall, which is an essential facility and therefore must be retained by the City. m 2005 Pension Obligation Bonds (the "POBs"). These bonds ($48.4 million outstanding) in refinanced an unfunded liability due to CalPERS. These bonds are not secured. Under the proposed Plan, the outstanding bonds including the deferred amount of$10,027,094 will be treated as unsecured obligations. Distributions to holders of the POBs will be made over time and will approximate I%, as calculated on a present value basis. The General Fund saves approximately Y $3.5 million annually. Total stated debt service increases from $3.5 million in FY 2015-16 to $4.6 Q million in FY 2033-34. General Unsecured Claims. Under the proposed Plan, general unsecured claims, which will include,but not be limited to, deferred litigation expenditures and deferred General Fund trade payables, will receive a pro rata portion of a fixed amount of cash payable on the effective date of the Plan or as soon as reasonably practicable thereafter. Distributions to general unsecured claims are estimated to equal an approximate I%recovery on such allowed general unsecured claims. Revenue and Service Stabilization Page 75 Packet Pg. 1347 6Aa �x City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Renewal of Measure Z Sales Tax The Financial Plan assumes that the City will secure voter approval to extend the current Measure Z local 0.25% sales tax rate for an indefinite period. This tax is projected to generate $8.3 million in FY 2020-21, the year it is currently set to expire. Without the extension of this tax, expenditures will have to be reduced by that$8.3 million. Other Expenditure Reductions In addition to actions implemented through the Chapter 9 process the City will undertake the following actions: • Efficiencies and Contract Fire-The City has initiated a series of studies designed to reduce costs through efficiencies, alternative service delivery, or increased cost recovery. y The annual savings start at$4.5 million in FY 2015-16 and increase to $8.9 million in FY 2016-17. N • Staffing and Service Cuts-Despite the City's current level of service insolvency, the $15.6 million in cuts previously enacted through the Pendency Plan would remain in effect. a However, failure of Measure Z to be renewed in FY 2021-22 would force an additional $8.3 0 million in budget cuts to make up for the loss of revenue. a As shown in Tables 36 and 37, an average of$29.5 million will be required in annual ongoing LO restructuring savings and additional resources over the 20-year forecast period to balance the long- range financial plan. Of the $591 million in total restructuring through FY 2033-34, $222 million or 38% is from increased revenues, and$369 million or 62% is from reduced expenditures. o as Table 36. Proposed Restructuring:FY 2014-15 to FY 2023-24 n. ($in millions) 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 0 Measure Z Extension $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $2.1 $8.3 $8.1 L General Unsecured Bonds 0.0 13.5 3.5 3.6 3.6 3.7 3.7 3.8 3.8 3.9 co c General Secured Bonds 0.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 y Fee Revenues 0.0 5.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 5.1 m c Contract Fire and EMS 0.0 4.5 8.9 9.9 9.6 9.6 10.0 10.2 10.4 10.5 N Efficiency Improvements 0.0 2.7 2.8 2.9 2.9 3.0 3.1 3.2 3.3 3.3 Creditor Obligations 0.0 4.2 0.0 0.0 0.0 (0.3) (0.3) (0.3) (0.3) (0.3) d Tax Adjustments 0.0 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 E Retiree Health Care Savings 0.0 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 R Grand Total Restructuring 0.0 31.2 20.6 21.7 21.7 21.7 22.2 24.8 31.4 31.7 Q Page 76 Packet Pg. 1348 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Table 37. Proposed Restructuring:FY 2024-25 to FY 2033-34 ($in millions) 24-25 25-26 26-27 27-28 28-29 29-30 30-31 31-32 32-33 33-34 Measure Z Extension $8.5 $8.9 $9.3 $9.5 $9.8 $10.1 $9.9 $10.3 $10.8 $11.3 General Unsecured Bonds 4.0 4.0 4.1 4.1 4.2 4.3 4.3 4.4 4.5 4.5 General Secured Bonds 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Fee Revenues 5.2 5.3 5.4 5.6 5.7 5.9 6.0 6.2 6.3 6.5 Contract Fire and EMS 10.8 11.0 11.3 11.6 11.9 12.2 12.5 12.8 13.1 13.4 Efficiency Improvements 3.4 3.5 3.6 3.7 3.8 3.9 4.0 4.1 4.2 4.3 Creditor Obligations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Tax Adjustments 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Retiree Health Care Savings 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4 Grand Total Restructuring 32.8 33.3 34.3 35.1 36.0 36.9 37.3 38.3 39.4 40.6 Long-Range Financial Plan Is Solvent The Long-Range Financial Plan meets the three tests of solvency: Q 1. Cash Solvency- Balances will be adequate to pay bills when they come due. 0 2. Budget Solvency-The budgets are balanced with all spending categories accounted for, including compensated absences and internal service contributions. Continued fiscal ° discipline will be required to prevent excess spending growth between now and when the to fund balance reaches its reserve goal in the mid to late 2020s to avoid reducing fund balance at a faster pace. 3. Minimal Service Solvency-The Baseline and Fiscal and Service Stabilization Forecast o restores a significant amount of deferred expenditures for capital maintenance, information technology and fleet replacement. In the near-term, no additional service level 0 improvements can be funded. r_ 0- 0 Conclusion L This Plan is currently in draft form and will be reviewed by the bankruptcy team initially and then by the Common Council. Approval is slated for mid-May. Conclusion section will be drafted m following presentation to and presumed approval by the Common Council. N r Attachments E I. Operating Practices for Good Government (Interim Operating Agreement) II. Preliminary Strategic Plan Q ITI. Summary of Participatory Budgeting Framework Implemented in the City of Vallejo IV. Long-Range Financial Plan Page 77 Packet Pg. 1349 6:A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Attachment I. Operating Practices for Good Government (Interim Operating Agreement) C 0) E w N 7 a O ca a. CO LO 00 M O V O 4' O C N O C 'C L �Q L m C M f+ E V Y Q Page 78 Packet Pg. 1350 OPERATING PRACTICES FOR GOOD GOVERNMENT Common Council: 1) The role of the Common Council is legislative in character,which includes the power to set policy, approve contracts and agreements and undertake other obligations consistent with the Charter and Code,while deferring to the discretion of management and staff to choose the appropriate means to achieve the Council's goals. 2) The Common Council will make the necessary decisions to expeditiously exit bankruptcy, as well as develop and implement a strategic and tactical plan that ensures the City of San Bernardino's d success in the foreseeable future. To this end, it will comply with Judge Jury's order to produce E a confirmable Plan of Adjustment by May 30, 2015. 3) The Common Council will proved the resources to pursue the City's best interests in bankruptcy Q 4.- court along with a robust communication plan to inform the citizenry of what is at stake. 0 c 4) The Common Council, as the elected body serving all of the residents of the City,shall perform o. its duties and exercise its powers in a manner that serves the best interests of the entire City, rather than any particular geographic area or special interest. M A L Mayor: 0 CD 1) The Mayor will build consensus with the Common Council to create and implement a shared o vision and plan of implementation to restore the City's fiscal integrity. 2) The Mayor will establish and maintain partnerships and regional leadership roles to advance the City's interest. `a 3) The Mayor will be the key"face" and chief spokesperson for the City. c 4) The Mayor will be the presiding officer at meetings of the Common Council and will fully m C participate in discussions. 5) The Mayor will, consistent with the separation of powers contemplated by a reasonable reading of the City Charter, not interfere with the discretion of the City Manager in the exercise of his E powers and the performance of his duties under the City Charter. U 6) The Mayor will work with the Common Council and City Manager to coordinate goal setting and Q the performance evaluation of the City Manager. Mayor and Common Council: 1) The Mayor and Common Council will jointly develop clear expectations of the City Manager and hold him/her accountable by conducting performance evaluations at least every six(6) months. 2) The Mayor and Common Council will develop and implement norms(Code of Conduct)to guide and direct their interactions and duties, including measures to hold one another accountable for deviations from the goals and principles set forth in the City Charter,City Code and these Operating Practices. 1 Packet Pg. 1351 3) Neither the Mayor nor the Common Council will interfere with the judgment and discretion of management staff with respect to the duties that are typically managerial in nature,such as the appointment, removal, and supervision of subordinate staff. 4) Neither the Mayor nor the Common Council will direct departmental staff(other than those in their own departments). City Attorney: 1) The City Attorney will focus his attention and resources on the performance of his duty as chief legal officer to provide legal advice to the Mayor, Common Council and City Manager, and the management of his office,and shall leave the formulation of policy and managerial matters exclusively to those officials charged by the City Charter with those duties. E City Manager: W 1) The City Manager will be the sole authority for managing City operations and directing City staff Q 0 in those departments under his supervision. 2) The City Manager will make business and policy recommendations based solely his or her o. independent professional judgment and best practices in the best interests of the City, rather LO than political considerations, and to this end shall strictly guard against interference with the M performance of his duties. 3) The City Manager will have both the authority and accountability to produce a confirmable Plan o of Adjustment for Common Council approval by May 30, 2015. 4) The City Manager will be responsible for implementing the Plan of Adjustment to ensure the 0 c City exits bankruptcy as soon as possible. o. 5) The City Manager will be accountable for the implementation of Council goals and policy and 0 the overall performance of the City. c� 6) The City Manager will be responsible for ensuring that the Common Council and Mayor are fully = informed on all aspects of important emerging issues, and as part of that responsibility will fully CO brief the Common Council at their Council Meetings on business matters before them. CO r _ Signed: W E s U ca a Date: R. Carey Davis, Mayor Date: Virginia Marquez Member, Common Council Date: Benito J. Barrios Member, Common Council 2 Packet Pg. 1352 Date: John Valdivia Member, Common Council Date: Fred Shorett Member, Common Council Date: Henry Nickel Member, Common Council r c Date: w Rikke Van Johnson Member, Common Council a 0 c Date: a James Mulvhill M Member, Common Council LO M Date: 0 Gary D. Saenz o City Attorney 0 Date: _o a. Allen J. Parker 0 0 City Manager L t0 C L d m ca .V E V Q 3 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Attachment II. Preliminary Strategic Plan C (D E r a 0 c �a a. M LO CO M O O V d w O C t6 IL 0 L F L IM W N G V .4+ Y Q Page 79 Packet Pg. 1354 City of San Bernardino Preliminary Strategic Plan Interim Report N 3 Q May 2015 a 0 M U) � CO o L e utation m4D 0 housing E residents 0 o HomelessneSS -a Y e ts;y�, I : .'^' r'3.1 ...n sv. . CU 111' -, &A*Y Grants work Place,., Governance..a,,. _�a s mtm$ -- s srrn': $ F- �NasF�borlwais pp ,�mountains Y agcemdu (/��/W (� 111St0 a... iftitica r..m Flre t1 @ed caw Housing'����}' nto 1 aid'IJ�1�u!1)1.� ux.�,�saf¢' Pianninj St' ets Crime'at � I people L a re O. live Engagement Note:wordle from San Bernardino strategic planning process Packet Pg. 1355 6.A.a Recommendation for Mayor and Common Council This document presents a summary and interim report on the status of the 2015 strategic planning process. While the work is not complete, much has been accomplished in a short period of time. The Strategic Planning Core Committee along with City executive leadership have developed a preliminary plan which provides good direction for the City with respect to implementation of a Plan of Adjustment and rebuilding the City. It is recommended that the Mayor and Common Council adopt this summary and preliminary plan as a supplement to the Plan of Adjustment. r Summary of Process and Results to Date E N The City has not had a true strategic planning exercise in almost 20 years since 1998. As part of the development for a plan for the City to exit bankruptcy it was recognized that a strategic vision was o essential.This is because one key criterion for judicial review and confirmation of the City's Plan of Adjustment is whether the Plan can reasonably ensure a sustainable City that provides adequate a services for its citizenry. Public sector practitioners call this being "service solvent".Thus,the LO Strategic Plan, is one key component in describing what "service solvent" means for San M Bernardino. Q Working with the invaluable support of the San Bernardino City Unified School District,the City 0 initiated an abbreviated strategic planning process in January 2015. It was recognized that the strategic planning process would inform the plan of adjustment and extend beyond the deadline for filing the plan of adjustment due to the nature of the strategic planning process. a 0 As initial steps in January the Mayor and Common Council approved of a process and invited participation from the broader community as well as from a steering committee, the Strategic Plan c Core Team(Core Team), composed of approximately 17 prominent community leaders invited by m the Mayor with input from the Common Council. i.+ Beginning in February the City hosted 5 well-attend community meetings(over 500 attendees) and administered a citizen survey(492 responses).The results of the community meetings produced a U high degree of energy with a long list of assets associated with living in San Bernardino. Participants were also honest in their assessment of the City's situation.The community survey was alarming in Q that over 31%of respondents ranked the overall quality of life (as measured by asking if you could recommend the City as a good place to live) as a 1 on a scale of 1 to 10. (See Appendix H for details on the survey.) Using the results of the 5 community meetings,the a citizen survey and a summary of the work completed to date,the Strategic Planning Core Team convened on March 18 and 19 for a 2 day workshop. They heard the results from the community engagement process and they heard a report-out from local government consultants Management Partners.The Management Partners presentation evaluated economic and community trends, attempted to answer why the City has fallen into bankruptcy, the current capacity of the organization, how does San Bernardino compare Packet Pg. 1356 to other cities,what barriers exist to exit bankruptcy and what will it take for the City to be healthy again, The unique San Bernardino City Charter was identified as a major barrier to recovery and a major cause for the City's poor performance,The Core Team responded with the following unanimous recommendations: 1.That City leadership i.e. Mayor, Common Council, City Attorney and City Manager immediately sign some form of an agreement to abide by a list of tenets found in high- functioning local governments. 2.The City should begin a process to replace the current City Charter. c The Core Team also identified the following key Strategic goals, in priority order: E r U) 1.Safety and Crime-reduce crime, increase community involvement, improve City Z appearance and creation of safe zones o 2. Housing-strengthen the overall condition of the housing inventory a 3. Education and Workforce Development-develop programs and internships to: encourage residents to apply for City jobs,to pursue additional education, and upon graduation to stay in the City �. m 4. Community Engagement-need programs to leverage and engage citizens to understand 0 and share in the vision, create a culture of engagement and leverage resources to clean up W the City c co 5. Business Development and Partnerships-provide incentives and streamlined programs for 0 new business and expansion of current business, leverage capacity of educational institutions and create new partnerships c m 6. Public Relations-develop programs to highlight what is right about the City, work with m local media to produce more positive coverage and increase public engagement. co Y On April 6t"the Mayor and Council heard a presentation on the strategic planning process and E adopted a resolution specifying how the Mayor, Common Council, City Attorney and City Manager 0 would work together under a set of guiding principles based on good government best practices. a Furthermore the Mayor and Common Council directed the City Manager and City executive leadership to work to develop programmatic proposals aimed at effectuating the strategic goals outlined above. On April 24th the Core Team met again to consider in detail a strategic plan prepared by City leadership which provided more details on programmatic initiatives. (See Appendix B).The Core Group also provided feedback on the leadership agreement approved by the Mayor and Common Council. At the meeting the Core Team also provided recommendations regarding the Charter review process, input regarding the vision and purpose of the strategic plan, feedback on the strategic priorities of the Core Team, as informed by the presentation by City executive leadership. Packet Pg. 1357 6:A:a v Importantly the Core Team concluded that while the guiding principles for strategic planning included in the staff developed strategic plan were acceptable for plan of adjustment purposes, these principles are an absolute minimum starting point for City performance. The April 24th meeting concluded with some discussion of next steps. In this regard it is important to recognize that while a lot has been accomplished in a short time the strategic planning process is just at the beginning.The Core Team believed it needs to convene again as quickly as possible after the Plan of Adjustment becomes public so they can assist in building a shared understanding and support the work of the Mayor and Council. To this end a meeting was set for Saturday May 15th Supporting Materials r The strategic planning process is an iterative process, and as noted above it is far from finished. E However much work has been accomplished. In order to preserve the perspective and views of y those participating in the process we are attaching various supporting materials developed during a the work so far.These materials include: c Appendix A: Notes from the April 24, 2015 Strategic Planning Process meeting, including meeting R o.. agenda M LO Appendix B: Draft Strategic Plan prepared by City Executive Leadership and reviewed at April 24th M meeting m Appendix C: Leadership Agreement 0 th Appendix D: Findings and Notes from the March 18-19 Strategic Planning Session o c ca Appendix E: Agenda for March 18-191h Strategic Planning Session - Appendix F: Summary of Town Hall Meetings E _ Appendix G: Next Steps Plan m c Appendix H: Summary of Community Survey in c at E to Packet Pg. 1358 Apxpendi CITY OF SAN BERNAR DINO STRATEGIC PLANNING WORKSHOP FRIDAY, APRIL, 24, 2015 8:30 A.M. TO 3:30 P.M. EDA Building 201 N. E Street, San Bernardino, CA 92418 AGENDA SEQUENCE: E N 1. Welcome and Framing- Mayer 8:30 - 8:45 Overall outcomes Q Roles of people in the process Outline of next steps along a timeline II. update on "Big Four"MOu 8:45--9:15 to M III. Charter Review Process 9,15 - 9-.45 m 0 IV, Updating Vision and Mission - Recommendations 9:45-- 10:30 CD 0 V. Principles for the Plan of Adjustment 10:45 -11,15 0 a 0 VIA Strategic Planning Recommendations 11:15- 11:45 • Each department to provide a brief overview of the proposed strategies and specific program recommendations. d m c 0 Lunch 11:45 - 1.2:30 E U VII. Strategic Planning Recommendations,continued 12:30 -2:30 Q Core Planning Team dialogue on the overall fit and direction of the Strategic Planning Recommendations presented by city staff, VIII.. Scheduling and Next Steps 2:30 -3:00 1X. Public Comment 3:00 -3:30 Packet Pg. 1359 Notes From San Bernardino City Strategic Planning Process April 24, 2015 The following are the notes from the April 24th strategic planning session of the Core Planning Team.The team had an ambitious agenda that involved a series of short conversations on a range to strategic planning topics. The outcomes for the sessions I were: y 1. Identify specific input from the Core Planning Team regarding the MOU process. y 2. Identify specific guidance from the Core Planning Team regarding the Charter Review process and work of the Charter Review Committee. o 3. Identify high level input to revised vision and purpose statements as part of the strategic planning process. a 4. Build shared understanding among Core Planning Team members regarding M the rationale behind the strategic recommendations from city staff. o S. Provide specific recommendations back to city staff regarding the refinement of the strategic planning work. 6. Identify specific next steps for the Core Planning Team. 0 0 c Feedback to the MOU Agreement a. The outcome of this first conversation was to identify some ways in which the Core °_ Planning Team could support the Big Four in operating within the MOU.The following suggestions were identified: ;_ d m • Design and implement a 360-degree feedback process that tracks and reinforces a way of operating. • Continued attendance at City Council meetings and providing informal E feedback and support. • Core Planning Team can continue to advocate with their constituencies,and ® We can encourage people to vote for those who are constructively moving the city forward and honoring the agreements and commitments. Recommendations to Charter Review Process: The existing form of governance dominated the planning conversations of the Core Planning Team in the March 18-19, 201S meeting. The recommendation of the team in March was to repeal and replace the charter. During the March meeting the team didn't have enough time to provide some guidance to the Charter Review process. The following are brainstorm ideas from the Core Planning Team from the April 24th meeting: Packet Pg. 1360 • As a citizen planning body we ask the Charter Review Committee to consider looking at an alternative charter or other form of governance and that they consider engaging experts who have been successful with charters to assist us in our approach. Bring in other regional advisors and experts who could interact with our community as part of an educational process. Look at keeping the process of change as simple as possible, if it gets complicated any measure will fail. Consider picking another successful city's charter or move to a General Law city- it will be difficult to educate on something that is complicated. ® Make sure that the process provides opportunities to engage and inform our community. • Committee will need an investment of resources to match the above recommendations. E Consider equal opportunities for community workshops for the conversations with community and allow them to provide input into the a Charter process. Consider the possibility of linking up with the San o Bernardino City USD November 2015 Community Engagement Process. a a. Input Regarding Vision and Purpose Visioning processes normally involve multiple conversations and engagements of many stakeholders. Due to the compressed nature of this process,the Core Planning Team engaged in a short dialogue about the high level values and perspectives that 'o should drive the planning process.The following elements were proposed for a vision statement for the community and a purpose statement for city government: o a. Vision Elements: What do we want to be known for: o We are an economic hub of Southern California • America thrives in San Bernardino L • We are a community that is build upon deep interdependent relationships m • San Bernardino -Where hope happens and success is realized by all. • We are a partner-centric city working together to create our future. A community the moves people from dependency to prosperity. ® A city that embraces all of its diversity- a city of caring for all. a Purpose of the City Government-We operate from a perspective that: Q • Our role as the city is to encourage economic vitality • We encourage entrepreneurialism.We capture and capitalize on all of our many assets through partnerships.We take calculate risks backed by investment. • We adopt a perspective of moving to excellence and what is possible rather than simply fixing problems. • It is our job to create long-term fiscal stability and strength for health of our community. Feedback on Operating Principles: Packet Pg. 1361 6.A.a The consensus of the Core Planning Team was that the proposed principles are an absolute minimum starting point and are appropriate for the Plan of Adjustment. In order to achieve the more aspirational components of the vision, purpose and goals there needs to be an additional set of operating principles that includes, but is not limited to the following: • The city develops and implements policies,strategies and practices that attract and retains businesses and tax paying citizens. • Partnerships are our key to mobilizing and leveraging our assets and essential to achieving our vision. • We operate with the perspective that every person and business is an investor in our city and a contributor to the health of our city.We look to build from within our city in addition to attracting from outside. E • We utilize a disciplined implementation process to all of our work that includes metrics, timelines, milestones and assigned responsibilities.We Q consistently evaluate against these milestones and metrics as way of o monitoring progress and course-correcting our journey. v • We need to look beyond ourselves to designing our future.We utilize a. partners,regional best practices and experts to help us with creative LO approaches to our work.We think about our system differently from the co past.We look to our whole community system as possible providers and resources- i.e. utilize school libraries as we look to expand libraries and accessibility. Our strategies look to support all of our stakeholders -small businesses as well as "big box".We focus on the strategies that enhance the environment r_ for all businesses. a 0 • We realize that everybody is an ambassador to our city.We take a personal approach to working with our everyone in our city. c L m C Feedback on Strategies: Priorities of the Core Planning Team n At the March 18-19th planning session the Core Planning Team developed a set of high level goals and approaches.The city departments heads and staff were then E asked to refine the work from the 18-19th into a proposed set of strategies and actions that both matched the intent of the Core Planning Team and represented the a nature of the work that would be incorporated into the Plan of Adjustment.They Core Planning Team commended the city staff on their excellent job. Knowing that the Plan of Adjustment is generally designed to inform a 20-year planning horizon, the task of the Core Planning Team was to identify the most important immediate priority areas.The following represents these initial priorities: 1. Beautification- street improvement programs. Focus on actions that: • have an immediate and high visual impact • Encourage direct community involvement in the work,and • focus on actions that have the potential for generating revenue Packet Pg. 1362 6.A.a 2. Safot . a. top priority to personnel enhancements that have high visibility b. strengthening relationships across all agencies to leverage our impact on safety. 3. Focus the work of the Fire Department on strategies that enhance community engagement and leverage existing (partnerships) programs. 4. Economic Develop_: strategies that: • leverage partnerships (7A&&B) to secure economic momentum and a team-based approach • focus on partnerships that are unique to San Bernardino and distinguish us from other cities and best capitalize on our competencies and assets. S. Government infrastructure that provide key foundation to delivering all the other strategies. V 0 r N • Look at outsourcing where it has been sho wn to be a best p ractice. Focus on changing the culture of the organization -one that is built on the best Q leadership and governance practices. o • Strategies that result in a streamlined approach to doing business with o the city-customer and business-friendly. M LO Additional Considerations in Strategy Development: M In addition to the above feedback from the proposed strategies and actions from city staff, the Core Planning Team suggested the inclusion of additional strategies and o approaches: • Build strategies that utilize students (a workforce waiting to happen) to help c us implement our strategies.We have a natural laboratory with our educational sector-both students and faculty. �- 0 • Our strategies need to expand the type of planning conversations we are S having as a Core Planning Team to the entire community.We need to build a shared vision in a way that builds ownership so that community members d take personal responsibility for their part in their neighborhoods and places m of employment. N • We need to focus on strategies that create or generate ongoing sources of revenue to help sustain our work. E • We ought to have strategies that capture our graduates and anchor them to stay/live in our community. a • Consider turning a challenge into an opportunity.We have a wealth of empty buildings that could be turned into business incubators for young people. Provide incentives and mentoring, • Look to capitalize on existing grant opportunities. • Utilize data to make decisions and set parameters on"perception of safety corridors".Visible impact and most"bang for the buck". • Consider approaches like buying down mortgages so that people that have jobs in the city will stay living in the city. Packet Pg. 1363 • Intentional communication strategy to connect our community and investors to what we are doing. Recognize that we have this responsibility to our citizenry. • Attract and retain tax-paying residents who participate and are encouraged to participate in the design of the future. It is important to attract all "investors" into our city. Proposed Next Steps and Considerations in the Strategic Planning Process: The strategic planning process is just at the beginning. It has been well acknowledged that additional planning conversations will be occurring over time. The Core Planning Team was asked about what they believe needs to be some of the next steps in this process.The following ideas were generated: r a� L We have to develop and implement a consistent communication and engagement process that overlays all of our work.We need to connect and Q coordinate all the communication processes being used by our organizations o in order to get out consistent and hopeful messages out to our entire = community and our"investors". a 2. We need to develop a set of talking points coming out of this meeting so that M each of us will go out and share with our constituencies. Steve Z.will get the o notes back to the Mayor this weekend. LN 3. Our communication strategy needs to embody a disciplined approach that has an identified point person in the city(Monica) so that we can tell our 0 story,be timely and get messages out on a regular basis.We want to make sure that we are communicating about visible and immediate changes in our community. o. 4. Create an editorial board so that we can work with the media as partners in °c talking about the positive changes and the ongoing status of the work. CU 5. Each member of the Core Planning Team needs to show up at Council meetings to support them in our shared work. m 6. One of our messages coming out of this meeting (April 24th) is that we have the promise of close collaboration with the city and our organizations to Cn work and achieve our vision and goals. a 7. In the short term, each member of the Core Planning Team was asked to identify the appropriate person within their organization who will join with Y the city staff in the continued design and planning process.The request was a to do this immediately so we can capitalize on the work. 8. Convene as quickly as possible after the Plan of Adjustment work becomes public in order to build shared understanding and to support the work of the Council in moving forward. Packet Pg. 1364 to O N_ w �E o = 'm (71 a a E c s da x o Qj 0' • 4J ► //� S8►�l�I (1 /�A a 7/ V t0 44 O 4-, L y L Q' v - � 'p O C. _ r � Q pnoid _ ° U E � s4;naawua m j p o •_ r " V N Y'GA tp v O (n4mj� E , dD O c q� (� Q c p O ? v- (D _ �, r v. to G = c _ C)i L O El > 1 a (Ou 0 EV ~ a H t0 v 4) Cl) „. O c tL `0 to a.. M O a+ cU L. C •Q UOI I93PP3 G . .�� c. a g- a-' `o d a� H L O E C > p a 3 n Q cz 0 CL (An0 W L to Lis O tU � Q' m v c ■ i •� c = w 41 E L O •i��1 al p �ja o e0 LA y' .Q 'Lf N f0 RS `° > r+ C t0 7 O d n co ±= L � u O 3 °o L tli ._ O y V � • /+�1 �° °° a °' .c cn '" �iI s n E °1 �? 0 vt o y c %4"sueil` • c U. o °v CL � � 'a L �_ o �4n � 'p. 3 c � �, cn �� c E — to c u _ N NJ to O p Q #� c� c c �a 'to to O •� to y a 0 _U E o _ -a w o 41 0 10 u w COL bD c t ++ Q 0 .� O A {A a o CL 'E .> o a E c L a E L 'a o. O w a 3 O °� o Packet Pg. 1365 6.A.a >` C,6 A ° °A v a u_ C _ io p v > s v m ics ca r6 u- d a s > O u C m '+' ' N r .a •x C >A >` m bA t5 O v m w v U = N U O v) m ' _ vmi 1 N v _ Cu ° m O *' -0 bn r al N -o .� : Z v *- L A O _ m — Ci . L v +� C I.L ,�' •U — OA a + Q i Q- v v p � n N V C O t6 E O L + t0 Q Q-0 u W d v L c rts a L o m 0 3 u v cw o > - o E u E s v O > v Q w.. 4J o. p. v' L L v a,, O" v u 00 u m L m o m E E -0 u , 4- 'i o v E v 3 u 06 C � N C Ln V m L.7 L a) ice-+ u i in 'D 0.0 -C tp O +� o m m. ,C. `n N g O s v U@ O 41 O O O v v O O v C s C _ Q _ s m m L cv .. L Q �. tw .^_' — t- v c. u v c. u ,E o a v v p O �" Q O ti0 C 7". C N L L , ,tn 0 + C �:..�n r6 r v aj U v c m m 3 v Cu u v o m u u > cca It °�L' �. p s >. c v m v G U U L CL (n .�, +, O > .� ° c'06. UOA Q ° "'a 4) c m E ? +1 o s v -O vi 41 m L M m ro �' o _ v s 'a �. C U aJ o C v) m C p o t a v o c o a W a) u U O u CL u v m L -0 � CL v v t o M 0 N Y V1 Q� fly (0 U .0 0,s m DLO. a) !6 4, 4 in 3 +S-' N vmi i > O v O O C 41 N a V) Q m O C c U ro C O G ° 7 0 b = m N ro o 0 0 0 v a own an c aoi a m U 3 c +' °ro ` L m 3 �c o ac L s u E 0 C � " T i �n n a +J O E Y , v c N tO V � C •� 'p A{ L n N L L O M 7 .M s� m fn 0 v p u o o f C: ° 3 o a s `I CL 0i a a E c v- O o ° " a o w 3 v u ,_ " n v E ;= v coo Cu �i Q C v �F, Q v v v +' v i ca L Q Cr 6d yL. 06 � — � ro —UO � o Q > .� � m rCO � � � V (D �' > � C O C cu is a) C v a v L L v °L' v C a) .� > E v °_° o v x v -a M 0- L s 'S u s m L > U M -o s c m s E .0 V .{r �+ QO (v _ RS C QI L v bA L L O ±. s T v �, +, I o O v o e m c �, C c F � c w o v i m u 4- bb o L o �_ v v o 'E ) !?� y 4- 0 CJ a m � c O r�o v a a s E .� v m c m u u c '� v E u +� o v v v, p o W O E CO m - O o Z Q'O Q— t7 u bA v u �' 3 v CL a o �' o v .0 o w m F� O 3? v L i U n L tC5 v o V u v Q O v > E v 3 a o v > ,, m y v — 3 o o m v " u v j p O _ " N v _ — m _ � d O C a O ,�-. m m aJ O O aa) UU} C' - C O cmj m L (O Y C. $Z..C) L 7 v L (O f0 Q N Packet Pg. 1366 C v _ m N C c 4J t_" L m t6 �N E C w U w N :a t V N C m 4 u i " m E E Q N Q m •5 .= N 0 O ' M u aJ '� C: •L 4-8 dA t i3 0 ;n N > L c 'u an Q. 3 Q. E C ',—n {0 p E CL tA U �' �4 0 f2 � O N 4-1 v u t17 >• > A n- L m 41 N L. N 0 44 = i� a c .Q y- s o a L CL Q, B E V m m E t'a C N °c CA CA ,i t3 f0 E fZ. i > y CJ V) -g a o m EL a) 4.0 (A 4- U) ++ L- tU tC p L- u co L+ V fl. ++ N .m +' N C N = GJ O D N 0 u � cg 0 s � 'G u X t W o CL m u y V31 G) � V V 3 y G. E F— I" U. w I" O Packet Pg. 1367 O -C 0 m > QJ ro m cz 4-1 E 4� U m 0= V) ::3 0 M CU c bo 0 C 0 W M Z3 cu -0 tt: u 0 w C -0 W W 4� 4, M = Q V) U w Ln In W m 0) M -0 o o E 0 c w " 0 w m W 4- :3 +- r- u M 0 CL Ln L- a) Ln W u 0 CL u M " c V) t a t)D 4-1 0 0 M cu Ln (U (U 41 ba IA a) r cu �o C3 0 UW E E 0 4 0 w CL .0 m m bD 0 0 t CL (U (D " C 0 �: Qj 0 U aj Cl 4� r3 c CL E 0 ru M Q m ru m CU u " E sz m LA -0 u m 4-1 0 0 ul 4- 0 4, Ln -a 0 m 4-1 E M > 41 -;,- W M E w E M +1 > aj 0 u -0 :t 0 V) 4) -w 44 41 m U 4� -0 U) I- � u Ln I E 0 .2. 41 M M >0 c — r- .0 QJ < > 41 M - -r- m 0 m "a o- 0 CD 4- 41 4- Z M W 0 (V m E cm E a 6.j L 4- 4 m vi OJ v OU M V) 4- 41 -0 0 m m to 0 0 cn 0 C a. 41 a 0 4-0 all I , Ll =3 m j3 co 4� tw 0 aj V) M 0 3 L- 4-�C Q) > M E 0 w m 'to -0 4., -0 in 0 'R a ono r_ 4- a E E 0 W. E x tt w U -C ,U: A&- m • z 0 U 0 c 0 > El, bD W U C & -0 < m L- u CL kA -a Qj F c 0 0 1- W 0 4��0 0 0 Qj W 1- a u VI 0 u CD -C CL U SZ W m Qj 0) 41 > CL (U 0) 41 M c > 0 w w = E -c: L- 0 Ln 0 W m u CL 4� 41 0 w M M r_ Ln a) 0 2� m o 4� E 0 M C u C to r 41 V) w -0 4�, 0 0 M E m W FL N 42 0 (n a) Ln m 0 w u to 4., L a (u Ij > > 4-0 CU Q Q C: M 0 0 0 Qj 41 CL m bn w E cu z toe (A 0 to a) CL C E u E M 0 4- 0 4� Zi w >-, 00 CL) 0 o w 4 (L < 0) 41 A 0 0 r :3 (U z 4j M M bD U ul a cu 4) C cu E 0 > u E ro 5- 4- to tn 0 M tz 0 "a m C3 tn W X r r aj u C: Ln M 0 Ln Ln u a r- CL 4J :3 w u - -0 aj 2 V) W u 0 m E 0 0 m - m r U 0 U: M >Q W = E m 0, Vl V) W 4, 4� w U 0 &- 4-J w cu E -a Ln U I w 0) 0 0 0 C 41 W M W ro r- >- c U > -0 I_- - Ln 4- ba E mw , a 0 0 o :t -0 — -1� w — -?z u u r- w 4-0 Qj M M 1-4- E -w u m 4- 2 - 4) 0 U Q. 0 = +- 0 m = 0 CL . 0 41 (D 4- 0 u a w E Ln CL 0 M 0- ai E E w E c -ra o CL 4- W U 4� E rm- 1w f- m m E 2 a m M bz M > Ln El -r- 0 Ln 21 .9 " I W W c .0 M 4-Ln W 4� m 0 cu 0 0 Ln 0 aj 0 4� E c -C m E u ci bA m w N Gj 4.0 m r_ m w E o I- m m t! CL o > a) 41 E < 4 C tLc) '0 o m CL :R 0 - Q S2 u &_ WVUO- oEEum (U - w 0 = m ri Packet Pg. 1368] 4- >- Qj MO o vi bjO u 41 (U C a) 4� 0) C m 0 .? IQ U o E Iq E 0 4-1 QU u U 0 m 0 > 4.. U CD m :3 w 0 tn .Eb w o 'Q'-j a , 8 m Z >' 4� C 0- x z I- 4� Co U- C 4. uj (:3 0 -0 4T C C 41 U- (n .0 C 0 M 4-1 U 0 4- M v, E 4-1 0 J, 'n m u CL Z C.) m -W 0 .0 CL 0 V) tri CA " (3 -0 0 3 w — 4) 1 -0 C !E -t3 0) j� C V) r.L U L: m U z > L'o Q C3 v as 4- m C .0 C u u - u > u vi u Qj E M LA - o o :Z-z %". m W E In- W r- -r) N 3 " = aj Qj Cn Qj 41 Qj E m 41 0 to z C J- 'u 41 E o C 0 o -0 0- a CL v can M 0 41 Qj (n CL m a w �3 w O r QJ 41 �C 0 CL C3 0 > E E LA w C: Q) u Q2J 4- C > In Qj 6-4 4� M 0 C 4� U U = > UD - 0 0 a) Cl) Co C 0 0- > tw u E z Cu (n `Z� M 1- 0 , r ' 0 0 4� -t3 C3 z -Q Qj 0-0 u Cu 7 Z >D. O ' Z3 u - L 'F E 4� Z' > 41 Q.) 0 4-J �.T m 0- C3 C U '2 Qj m m z CL z U 0 (D M 0 C 0 Qj w u E o 4� z w to W bn 5 0 4-1 0 Qj m -0 0 CL Ll 0 sin a. w .61 4- 41 LI) 0 E Qj mV) C a 0 U 0 0 E 4- W 41 -,_ Ln M 41 C m 4- 0 4� V) u 0) m ro u L3 Q) C) C) — -o' 4� Q) 4- w > m -0 ,u Q) 0 Ln C�j CU E Cl CD CL C —' r'l w LY m -0 (5 m .=, E 4- M Q) C) > - — C M CL Gi E w LX) CN " 0) m C) Q) CL m 4-1 E 0 z' Ln C aj >- 4� 0 4- 0 I U 0 a +V) bD 0 Li 4.1 w 41 Ln 0 41 v, IF-.2! 1- ;n o a) tA W - 3: " z u E w m z > C3 CU a lw E > -0 Zs w 0 u 4-1 V� W M C: 0- Qj Qj w E m C 0 E 0 m M u r CL m 4- W CL m w W m CL M E 0 bz 4 a u 1- 4- > r .L _r 4� c- o bo U r :3 x Cl) E uj S a) Cl 4. 4� > u m 0 u) E E 0 El C .,v COCLW 0 Ul Co co m -0 M 0 u C v 0 .2 4w� -L 41 Cn 'Z; m -0 0- CL 0) :3 U C C a) u m m u •-E kn Q as m Q -0 Q CL U 41 =3 4) U r E 2 t E .0 M 0 ,%Nor 0 CL u ni Packet Pg. 1369 o c 41 0 c 0 > 0) = 0 X_ 41 4� E > -0 4-0 41 41 Ln t�l 10 0 Ln 4� Ln '§ w c -0 o 4.� -C 0 C 0 4� N Ln Z3 > Ln (U V W M = V-, m E E , L- t4 tA M 0 E0 V) W 4-1 0 C Q) M u &- 1*- 0 0 C Ln LA CL rG 41 T) 0 u u w 4a S- o -- m u w c c 0 (n 13 Er- ai vi N m In o I- - CU _-z CL to a) vi 41 > r W E -0 (A 0 = z (A V, Qj c: 1- 41 rz — GJ -C w 6) Qj 41 0 u w V) V) 0 m 0 0 w a) to 0 Cl to u Q) W cu 4-4-1 .- U u -0 +J C m u 0 W < CL -c m CL m 0 -(Z- m c aj aj (A CL (U 0 0 14-- 4� 0 0 41 — M Cn ra Ln a) L- 0 M Ln E 0 On r, rAj Q) - 4� E 4� 4'# 4�•0 0 aj 4� L- c .1.1 U 4- tn %- C E I m u 0 CL a) C (3 -C3 U) 0 L. -I-, th m 4-- 4- M %I.- Ln o L- 4- 0 Ln m c m M 0 cu L- -C U 0 (3 . u -C < to M Qj u E Ln (U r (U = 1- 4.1 V+ A 0 -0 c -0 O = .- - C3 m 0 4:� 4� -�e U QJ Q) W fA (U u E Ln 4� 4 U V- m 0 CL to —0 Qj w c E u 0 cu, 41- 0 Z3 v ai 0 U)vi 0 Cl M tA r- ..- v > LO m > M 0 co r qj 4-1 41 CL 41 4� U Q) m C '5 M E to - r- m OJ - I- c c c .- E 40" .- L- M (u 2!1 .4a :3 m m w a)�� 0, E , 3: q-- 7; c: - (D W cL 41 U QJ E > > 0 Z 0 0•ru Q) 0 0. fa a) 0 V) 0 c u lz %- W U m E w M Qj c CZ S- M U , 75- m < t3 0 C > 0 u C3 > 0 a) E c C) E M M 4�: 0 M to :E z 4�V) w a) tlo o >. 4, '0 > c .- 'n C a3 C U M m Ln _ 0 0 bb u kn 0 - 4- 0 w -C CL a 1� 75 m a tW 4U- Co 4-1 C 2 tw a) t +1 r- m 0 c 0 V) z E t (D w 'o Ln w w E u m - = = .- :3 o 'tf: .?: 14-- 1- "0 V) W , C 4-1 o SL I L .- I VI 0 QU 70- 4- C Q) .4- m CL 4� C V) 0) CU 0 -C E (U F. r_ _Q CJ bO E L'i 44 CL m p 4� > 41 E M G4.. Ln rl Qj 0- CL 10 u w C C: 4- CU C3, 41 0 E Q) cu C) 4a V) 4� Ln E M 4J 07 L " .0 m S > m E (A (U Q) Ln rd 0 E (U 4w 4- E N u U M - +A M -1 0 1 w- 0 41 0 .2 :a I/ 41 M w lqt r_ E E o 0 -0 U M 4- M, z < c C M &A 0� — 4- (U u O E 42 E 4o' "a 0 a 0 M (U 0 a m u a " 4� - V) CL a CL 0 =3 < >. M 4- 41 4� 4� > 4a m t E m E 0 r C3 -§ U w OB c �5 E M 0 QJ w Q) r- *Z; -Fa v) t�, w 0 tn .0 r U 4,1 C3 A LA 0 0 4- M 4J , E LO m E m 0 4-1 m (A o 0 W .- L- Qj to W r- C CL 4j. 4� ­ ho 0 -- -0 4� CL ai a- yam—_ c ai (lAn o (3) u 0) c m E u > E w > m m Ln m 4� 41 cu iz 41 0 0 m -Fu " -0 0 E o 0 2 'A (D :3 E w w U cu — :3 u E c U 0 a c Ln IA 46 m ai U w :t 0 CL > CL 0 Q) 0 Packet Pg. 1370 41 N E m 4-1 Q) 0 0 3- w > 4- 4- >. CL 41 (U o -D a) 4- S- C: M 4� :3 > a) LA w E m _T3 0 -ru CL --z 41 -0 Q) C C u CU 4-r vz E cq u ?7 rU 0 (u �� Q) 0 > M v = m = ru 0 > 21 vi c ra (U cu cu .— CU r,4 L. bD ai 0 V, X Cu w Ln E w M tc C kn o 0 E 4� Ln cu M L�L -- 4' 41 :3 Q 0) 1 4- 41 (n 0 u UJ m = Q) V) u 0 4- 4� Ln U- E S 0 0 LU c: CL 0 -0 -0 44 0 41 E =3 CL Q CL CU qj Z. 41 4.1 C V) 41 c :3 E M- =CL "a- -,- v; 0 c 0 -- 0 4� E to a r- V) M W u W CL 42 t3 +, (U +� 4-1 u 0 0 Z cm -0 0 -,o U to sz U) C' = C C C 4-1 4Z rz 0 = a (U :3 U) M 0 a ai %- CL �: — NO (D E 'U' 0 .�p 3 > C-)- w w E 0 V) 0 w CL o -0 Q. "a 4) — ai a) 0 QLJ 0 0 0 > 0 0 < C) Z 0 E 4� 4- Q) (3) ai cu W U E nff W> m cu w EA 4-, 0 m m 44 �: Ell -Jo c: -0 — rm u 0' a > a w - :3 -- -0 Ln 0 .— c w V� w 4� On V) 4� r- 5 4�- co C3 tA -13 ai 0 0 C: M Ul z 4-1 C:� .�= L- " d OJ cul I a) 0 k OJ -0 =3 m, -a Ln CL E a) bD 0 0 �J-- aj �n 4� r 4� 0 4� J2 U -0 Co V) C 0 (Ij >, Qj bb M 4� 0 CL X M Cl) cli vi 0% C _0 — LA 1� M > a) Q) 4� 4� > w 4� 6 u 41 t3 ct� r C) 01 113 z t E S;to u > S- 0 : m E t o o m 4- 0 -Z m (1) u 4 1, OL - 0 41 4� "rz 4----, t" C: =1 0 0 0 41 0 UJ C 0 C) Lo (A U a) M 0 0 V) a z Q) CL -C 4, 1 .*a = 0 0 L- bD -0 0 4- = bio 'r.3 0 -C U 0 0 " %1- 5 w C C txo Q) m 0 Qj L 0 rZ L. 0 41 ci c E 0 Qj 4� (U 4:1 FL U in 4� 4� 4� 0 Ln m 0 0 CO CU 4- Z3 Qj 4� aj c: c a 4- 6 m GJ 0 14-1 — ,�z C3 U "a a t4 10 c �rz CD u aj Ln E 0 4� 4- > 41 2 0 4- 20 cL a c: -0 0 0 �z L. m bD - ry) 0 m 0 C r3 CU +j a) ui m .0 E +1 ro C5 0 (13 Q) w 4� 4, '.;-, 0 W 0 ru Qj -Fu 0 0 m Ln 4� r 4� m QJ 0 CZ, V, 0- 4� L+- Q�k u 0) LI) Zi m c vi Ln CL -Q) 41 rn E a; -Z3 Z5 U- U) m 4� Li LU rz 4- 3 -1-, ro I;z E 0 v� > 0 4-1 0 Q) U m = 4� n W 4- M a .. M U Ln 0 m c o Ln m m 0 -X E aj Cu 4- o .2 4.1 4� CL L- 4� CL CL E bz Ln C: +4 41 Ln .— Cmm a wapua a W %-. 0 40 4� W m < E� x a) 0), Ln c E > -Zs > :3 E E 0 r Qj ±1 CL ro rz Ln 0 Qj u ai Ln 4� r C: U .1 +� 41 >- CU =) 'n ra 0 C 0 a) 0 o 0 W 0 4� 0 c 0) L c c 0 -C L�wn — 4a '73 41 m E u M r u 4. m V) > C 0 M .13J 0 w u o o W a Ln W m u o fO 0 C) E Q) 0 M 0 4- Cm w — lr� LA cu 0. i�) �: Q) -0 > u c c E U 0 m w as vn 0 4- W M Q m -0 u U In Q0 0 o = E Packet Pg. 1371 ry. O W _ c 4- L O M 1 2 C (1) z u o a Lei M v = a c ¢ �, a a o } 3 o i m m 'Q) O O L ty Q Q U_ a s o u v Q) zt a w Z w v c o a °' .� Q °' H o v M o -a E w 2z 4 ai y a, L a a O o v c CU CL v o o N a. E v! = � \ � O O � Q � E CO � w = to a +a •� � v1 r� v iz a O m O Z �' 4i ac U y... (U a a M � ,, O Q L o Cl w a N u. -0 C Q1Es O a uy Q1 O v O V U aOv O E cu O U i N O w 0 u y a Q) O U a u Ln t3 �` `a fE L Q' O +� L I_ N �i, O� N ! V Lp +� a a '' O `�- a 41 0 a G v ° " N Q a O s .ui O aJ o CL u 0; c v a� f° a > L a I- vi" c a, o v + o E a L 412 a} C > pA a Q a O i W CL 0 dl O G Ln V) Cu O v p O � h p aJ O O U Q U O C E p vas vs '^ W "° > E m a 0.s C u L U a, — O a C d O v N cSUs. u °�' a s -z v' 'A � O a 4� a O co Q a > O 0� �. u ++ ++ L. .� O O tj ._ 'O C3. _0 M u -Laa O N ,,; :� a "` Q �, Cwt O -. ra tty 'o 41 M _ _ a a er a �, a a �- 3 a � 3 a `m bn an M -0 al a, -0 = L o +� a s +, a -a m cn Q � cu a ° ° a m "c "0- a oo *' E = vs C C L L. vi y� L a to u' 'Z 3 47 L t0 L O ' 4- C M 'O C o � O '� w..' O M p ""a u O Lq O �-- C O �^ cn E a O a 1p O rT+ Q' Q. a = }. fi O '� d -p U v a 41 M � L Oa ° 4'C L Q © Q ' O. O a N D N N 0 v k ° „O U CL u o —° o cs a c a ,, a 'a u }' •� a s =aj c c a v L c m a a, E c a O :a w V > c ) — O c C o O a. c 4- m N 45 � 4E � E o n e -- o 0 W. u: .0 .o o a a -a n a = to a >, o U o L a w o a o 3 -� o Q `t �; -cs '- •� rn m o s� o o a o 3 = +� E o M o a° O E _ *' v w o r = v'a''s w ?� O O- O i a O O vOs 'a 4= = O� O O� M C c C Q ._ z CD Z a 4- O 'o t) o -a - 4 O = it ++ a tom. D Q O O a 'vs O w m O 4- � a O 4- M Z � p O -o Cn O M C n1 O O N > a L L +J t C u .0 a O N u +� a O a Q V t/} O N i O a -p in + R IA Q • �o c Q Q au -a M E v mom 4-1-r- :3 o t = � -u a w M o a N O O O }, O iv s O A t L. .0 m a (A a a m E a y.• a. a O .°_ > E -0 E ao c E m ° .E s a s — O � L E . M U 3 o ° a s M o = o ! o O � L a C u is E ° p m v u 'v u u ai cm a v . m Q V a m C a L Er 'm a s > L U a ci 'a at a 0 O Y .o u O O M L6 Packet Pg. 1 M ro A2 (3) 0 C 21 4� 41 0 1 m Fz w 6 u E E 0 E Qj C: E > E 5 0 w > 0 C3 0 &- U 4-1 Qj 0 >- 43 -0 CL m m u 0 r 0 (A 4� aj 41 u co > LA kn Co to 0 Z >- u cu 4- Q) E > CJ vi + = 0 4.1 0 V) CU +f 0 rz (V CU > 7z E V) E 0 m aj c: o 0 a) , +1 rz 0 4- 0 TS E > vi Z3 CL Z3 w :t 1� 4- 0 0 > C3 $,- m 41 -W 4- > c —I- > Ln -E > E cB > G 0 C: 4.1 C.) -C3 0 E 0 c 4- 0 1 c Qj Ul t3 4� QJ a) Qj m U U Qj — 0 QJ 0 41 4� a) < > 0 cl- 41 > -- E LZ3 -a z r3 u 4. cu w 4- 0 .0 — 41 > E o 0 Ln 4- > CL L- -0 Q,) 0 0 Qj c:x 0- m Qj a , 0 ol m Ln —t cu 4- qj E :3 c Cr r bn 0- (n Q) 4Q 0 c 0 V) I-w Q) t :t -0 -tp .— c 0 > c z p E a. > 4� U LO E C- co 41 E m 0 x CIP) m cu L- CL (3) Ou U to W U on Qj 0 13 Ni t3 L) M ra 'Lle),11 r- L- r_ :1:1 L- — Q) C: C3 C) 0 CL 'E Q. :j lz 'n Q 0 V) am) 0 C3 M 4- a CL — 2. bn > C: 0 0 -C3 (U M C) U (U 4� m > 0 o CL I, , (u :5 :-� 0 -Ln, 4- w 41 C) (D 0 0 0 u —, u E z 0 W 0 cu Q.) m CL 10 -- 0 > m 0- E ro 4� m U, cz r*n C3 4� 44 0 0 :3 to w S >1 Qj W. Ir3 (a Q) 21 U = C: 4- qj U ,., a) w C) 0 L- Qj = +1 , 0 o a • m (3) — - f rz c >� o CM 0 C �o m Q), a' a) DO c cz CJ Q) tn Qj z — V) >1 M r co a) u E M aj Q) -0 kn - U) r3 -C 0 w " �j 2� 0 -r3 Qj 0 Qj 41 (U Q) 11 m SZ 0 >- dO r- ro u M M 0 W 0- 42 Ln 6n bD E E 'o" CL 0 D- u O w > U a >- 0 m S -0 > m 0 m t3 Qj W 0 ai Q) M c 0 W LZ Ln ri w En lz C co Ln c m o Q) r 4- m E m Q. m m CL cU v1 Ln -t3 in 4� 4' 2 Lo 0 U o to X tri o Cwt 0i < 4- c: Q) u ,u C, 4� (A 0 4- JA E/) 4- �'l V) V) M 4- Ul) CU 2 0 Q) (u ro Ln 0) 0 -u 0 0) a) L- W o (m 0 > 4� CL fa) > Iz; V) o u L. u u u (U 4- > 0 QI d vii 4- m 0 rO 4� 41 m 0)u ci a"i 4>� m 0 Packet Pg. 1373 0 1� C3) Qj 0 w 4-1 0 E C3 m -0 41 > rz 4- >Qi 41 0 m u Q) +1 W C 4-- > 0 Qj 0 CL 4� 0 C M &- &. E 4-' C r (u _0 CL 0 — a) C3 w u 0 -C3 r I 4� > rz Q = = 4.1 to 'r Ln w 0 4� W CD tA Co 0 z E M 1� L- = ? -r- 0 " 0- 4-1 C (A 0. 0. m Q), 75 0 3 w CL a Ln m 0 0 S� -a '0 -0 E Qj w >' 4- U -73 +1 u W C3 0- -o a u 0 C -Z Z '.' — &. a) 0 4- z z CL 0 (V - 0 4' (3 u :t W m 0- 0 -a Qj Cu Qj W — (n 0- C.J 4� 4� to 'a U� bn LA C C C 4J C3 :3 " Z3 0 m '0 (A rm m (1) (1) ro > O " (3) z 4-1 Cr r- r (1) vi YJ -Y tzn z E 4- 1- �o t�) m V) > > as C 2 Qj > C = o > 4- +1 Lo :3 u C: C 4� z m M m L. CL 0- Qj Q) Ln E :E Ln 0 �:' C a 4� Qj E 2L Z3 E >- z 0 -4CJ a) C) 0 LU ifi := :z C3 L- -0 u 0 ai Qr 4• kn x - - = — Lo bo r- D- Q) Q) bp (a w 0 C) Iw r- E m E 0 m "0 Z' Ln CL w W 0 -0 N Q) QJ CL 0 Q. 0 .+:,: 0 4- ro 0 j6 a) ' n Cu 4-1 CL 4 0 z 0 CL CA W - - CU a) 4-1 = E u a z L- — 13 lo- < Cr 41 Cu Qj to w 4- tn S:)- r Ln - 4- 4J 0 E m m 0 v1 a 0 V- L- 4� M 4- 0- 1 C m C 4- m 0 E C) -Z 0, 'S� > m Cu �.:- m M tA o -R = 41 45 to 4� 44 m o -0 o �o :tt u -C �: 75 m a. m Ln 4. .2 0 41 z 4w m " +1 u 0 o 4z' 14-- Ln 0 E u 0 0 41 r -0 , 0. o 4� 41 0 - =' 4- 0 C a 41 41 CZ O� CU V) >� 'm m 0 Ce) SZ m w > -Z 4-, _Z:�_�, 0) 44- CU d) "0' 0 (D w 0 4� E > Co sn &'a - ol V) 0 4- Cl 4uj E Q 44 M Ln > L- Q) L- o m %- 41 U o bfJ E M " --a m Qj 0 W -0 > 'a :3 r-L a) a) C: -0 0- 0 m w 0 E > L- tto 0- tn & C o > CU 4- 0 Ln to '0 > 4� CL 0 _0 4- C: M 0 _0 a) Cu 0 C W w C3 m C CL U C u " 0 C3 bD u 0 0 CL - 4- C�) low) -IZ3 2 w 0 Z3 r- m 0 z' �: %1) 0 E CL) m f^ 4- E co -o M — w C - w C 4- LO :6 Qj C o Cx 41 L- 0 CL -0 m CL o Z - -a z a r 4a 0 -4-1 m ai Ln Lj - 4� 4?�' a FL 4- w kn a) M _ 41 (Ij > (U C QJ C3) tn -ii °> L. (v E '-- -o u > 4� Lf.- OL M 4- 0 C: M 4- > :5 -Lu U s- m m L G ra C Co m Cu Q, o r3 4- w 0, w V) C %- 0 Q) C) 4' 4- C.r3 W 4� u -r- Ln E — m CO (U -lz > r_ 4- Cu m +- .- , 1, 4� tA -0 0) 4� -:3 4b 4� c: s- 4j 'In- z I � m 0 w z (1) Cx V) I Q) s- 4-A, 3 m Q V, w > u U) Co I 7E w Q) I,- 4� m W Ln M C) L- r- z L- C) CU L- IZ Q) P 0 0 �4 (1) u 4� 0 1 — M _C V) V) 4� c CU C) u V) 4a Q) 0 > 0, CZ U -W ZZ: m C� C/) kn L- m CL 4,P, M 14 'C L. M '40 m Qj SZ m o 0 C D 0 4j 0 0 —z3 -V Ln M Lr) C5 E ru t� -� E m im E 4- m w u V) u CA m 0 -0 a) vl)� -zz LL :z 0 M tz :t Ln m (D 0 u 0 U kn tw m I V) C 4- Cj 0 41 o O. 0 u u u O +1 u Qj > :E Im' =3 n E .- C: M 0- > M 'n 4� -" -0 L. w 41 -0 E w 0 Q) Q, C) x w W — M -0 w 4- --;-- , 4� 4- 0 Z CL u% fn CJ 41 - m 4� m u t 41 0 0 u C) C E a m 0 M W M m 4, QJ QJ 4' CL U (A CL tw C Ln L2 w Ln -C C 0 -0 0 Lt! E 41 4- m w x m 0. M r r r4 Cu -V m 0 0 w m E 0 Ln L- 0 0 0 u 0 Ib of 4� > W -0 C -C 0 0 0 0) C CL m > M w u CL 0 - W a) o CL u 0- <I -M (A Packet,Pg. 13,74 6 A.a 0 44^ QJ m O m o ri7 yr v d U L. i = } o L V- o QJ -t3 E fi Z Q, QJJ aT C 4- Q C r o O a v s. o ++ E a) a O ° Q. > > QJ a �^ ° v 4-1 a z O QJ i 4� m iZ O U OQJ H � tM to o i .0 .0 E N O SZ ru Z7 ALA +1 ate—, 0 + o (V p O(U m C 4N > E O c U Q N C aJ v c d '~ 0 c Qj =3 > 4- id, U -0 O m S] ut a o a Qj a t q > C Qf C U O_ Q] ca E _ ;' N c L +, (U CL c E _ r > cu 4- 0 C d o O u fQ.. -O +5+ -r- e O N o cu N QJ R Q7 C .v QJ Ln j �. .>- Q Q cJ Co •� - O C cU' 01 c U o Q al a U Q1 vi G �3 S7 `+ to .0 cn Z '` 1 +�+` o ZS C a. o ate.+ m U QJ w «s c D +O QOJ �C j 0� O O o u n O 0 a M: O 4.-lZ ai � C QQJJ a v v `-' ai O c n�J m f6 •" L ,�.. ai C Y �1 u L m Q o .N o 4- t, u c Q� m U a a a sZ a �J a c �, �, +' V) m QJ �' cu o n. v.� QJ as QJ Q c L c a, S •� c i Q ,LJ • d � a. �c !F+' ° . '..o 4-. C +r Q) cn , 0 o f6 > Q v d a i a m N 3: tJ () u ++ a ,w_ M o c c I C m -O O a M vy fi 1 � M � � � Q CJ a C � � o bo L `u° G o L 0 Q U M. i��.. 'ate', O qOQ -� o a.41 CL Q 3 �aJ v O O ai +>, vi L O, u, > U a cj O W N a aJ i c v -a m E c a m o v m v m a c CZ C QJ +, ° -p -Q a s� QJ °J o o E T w L ° ° o a ° H o w +� v c +� o co > m >3 a✓J -a J v O i +c u E CL Q UO Q ME N ; +w c Q a a cu o 4.1 -a E _ � .m o v o ? c L a m m M c • � ,p N E H o c4 a t�o a a `� -a °° r c'"o C 0a U s d c V c N Ln E m 50 � QJ O ., a ?� S to i u QJ Q c Q o a cn uJ U �, v v �- 'gyp' v o Q aci c ci c � tx E o ri a a � +II a4 ii ro cs o -cr za QJ � w aJ v E . N +., v1 t s; fi C Q) `./" L L 'Z7 (0 m Ill S c t1 N U QJ O r_ O QJ N <h I m o 1 a Q U o 4E, -� •� H L 1/Y �+ O VI c a . Q Ql V a_+ + m 41 O c Q > U u .° w ,z ton 0 0 __ E w 3 m U �' v v > m > Ln vi v O fL0 i Q C LZ N c Zf vi v i, aJ cu > v L o o c c Ln a) s e e e e Q a) `A c C +, - C 2 t C o y� a1 +' ._ 'a ofl i vim- (Lp " - > O C" :3 aJ a s c Z3 u r m- E Q V W Ln Q o m ms Q"J a L � +� �, v, 3 � a bo O .S m ri Packet Pg. 1375 N a@ U j,'Q4 u Qj i p Q Q U_ :z Ln O {O+ p s G1 vhf N yS a1 fl u + = CL Y Q v O a a+ L = 4. c O Z3 ° p O W a CL O L tn on L. c E O r'' of Z3 'L3 E Q1 L 01 4- L N O m v O w ar-' N O C u O CL 41 m � n � bi a +� @ Q N Ql i p) v O C p ca N Q f1 O ry QU G7 > (C CA v c to ;; N 4- m �+ ° E ,_ a m o O r CL fU C m OJ p -0 M O w Qj Ln a1 N ❑ C rn a L rri -G N ru sl r } ai a s y C p C r- s- +°: a m s a Q) c +, Q Z3 (U 'O N O O its a°' d• o v a� m v '' 4J ° c � co E , 3 O� Q , n u p °ai ru M a -O ai °ru, r a E u m t3 v u o m o a- a > 0 �. c +1 42 .2o N -C3 Q) E t C. c ? a .c v v O +.cr �O E —c a. d O cn..In T3 m rli ri qCj d C . .�y vi V V a m N 4.ti co +� r� r. r+; N `� u C W vii 'S L3 � a C v c a u ro a n M u, c O ❑ CL a o E `-� c' v a1a ice; +� rn y0 ❑ 41 aJ M C) O O _ T3 p C3 Z3 C o v a W 0 � � on = w � a o +�• > v � a �` Ts a o v u � c �° CL a coo m u +; i v a 0- o v c o ra a a a O i'�. O' L ateJ - N M U O N 3 cLC c c `, > wo d L a � m p 4- V m oa a c a c v� o ' ° o in 41 U a H O o 41 ❑ CL Z n Cu Qi N _ N VC G U O Fm- GJ 3 Q Q 4, ,� N a J ° E C Ln L a y w ; Cs. m > a' c •i = O > ai Q U E p �° E � v 0 -a �' a ° ° a `-' °' ° c v = u E a 'a m co a m _ � V, @ - i 4-' c a °i t6 o c °' m a E °+- C. v M v c'` n,, O .a > ca a a n o a o a O m >. o a 4. E ¢ vs a 'an E o CL — o 4 v D ,E a V) ra ± 4. cu O v v O i = C D U O C = y 0 v O O to m O f' = N LJJ m ++ Q a) • • CJ a1 tw u p U = u C m +Y+ d 8 GJ c Q Q- 4.1 Q O Q m r m r0 3 > w L 4 vs +; N � o +- u ci 'a ai v m v L a O O O CO Packet Pg.1376 a 4. c u @ ra a} L o ar a = V N 4 '� c N '' a v N C y vi a, a + ro c v ,� a E ` coo a I.' > m E � a tv 4- 0 IV s C ._ � a ° LO E � o c v coo a' ca � +. v Qv'i O o a +4 a a � `�^ v c u +1 1 v v ,-� NCO CL' > Sao N C3 a - Q1 Q) 4- Q E ate'' 'a u o +� r o N a ,� +, CL a n. c (A o ° 4a u is o > O E � ° > > .� Q �, o o E- T3 a C C C Qi O tll a TS a C p `-' ° tin � @ > � a � c o � � , � c � � M � Q. a o an "> 3 ° - ° a u CL °a O —° +� � Qf �n �° a o � � @ � C a 0 Ln a u + 4+ — 00 V +% - C O tz +- a -o tti L +-• -W (g N z m 7 C C N E u 0 4- O L N N Ln -t N G v CZ TS O Ln tw ca E Ln '� O O ,� v 13 a. CL a CO a Qu 4-• to -0 c a Qj a li u Q Q i U} C C �. 't3 2 zz L O ^ `+� V ° 4M a U y h N C C' w 0 0 p +� t1} C � ` Q) U a >, 7 O y O ZS o C L u O ti `V) '- O +� O X 0 p Q u ° v m a v a s ri O v c o 3 � " w w a C o = L {n "v v zs u co sC_. 4+-� _ ` c v C. '�, • '� a+ O y L o O -0 E o a m o a N l 7 a w (1) QJ d M + a- 1 � ^ a 41 QJ h a Q o a C c fQ a at? °- a a E L �' 0 ° ° o °` `_' U Qr v O 3 E@ y +� a £t� oA O u . — C C Q1 > vl u • +kl-X- 0 0 o a - a `� .� w a E o ° v c a o o a o ea ° .�- cts Q. 0 : a c E o a L v �' 0 Ln +, U a L +± a O 'L `r- a s: U V +_' a CL C '` .'- 'a -C7 N � O O 0- o O 4Q c0 Q V C O O o a �c \ 3 O �' ai a a, ° 't° a; \ '' '" v- a n s u }>-, p 'o o no .z O C: u Q, Q' s Cu o LO � '� _ O *' a a o a a �- na a v v o c E _o ° � ° a, o � ono C a o o 4J CJ O _ Q) C a N N 0 O V M > .L vvj tat y ) > o w 4- C y = > C N 0 O C C � f0 E u ' � `� u w 'aG O C +�Ln _r M O •C a v h i� ` tYC a u _C d a m @ U a a 4- N v" L Ln ° � of Q) L }, p a w � o 'n a V '� a '- 4 0 i a R7 •4�t 0 ru L wf m m bn O z > -p ` y p O ) "I C En E > �a. O `0 C w c C CL to > ° ° ° E ° m �° m Q) o o ° a a ?.,� Q o a ° a c m o c C) 0 > © +-' czs � 0O 3d C: ao -c � CL O4- d to L C] cn "" in y y ca a �y 'y c4 v - t O ;0 Q eO - o C 0 CL N a .E aoi "� u a "� E pnn v`"i ° °: ,. n � ttA a 40 C C c ?. ' -° E co i�. a s s= a o u a a E Q •�j W , m a Vim+ C •U iVi a. >, — = +J 1 L {j L C U �` U -0 (�, a !V ±•+ U a C 3 U a L -C E •C cu m vt E �QJ V w 43 m 4• ftf L 'O QJ a U jJ} a Q) u O_ O C a + Q u a D 4- a a. a L fD N c -0 n v ° > E ° ti v m aoi a > a cai � roo `�' = an L" a� O c w ¢ o W c @ a c E o L +� E o L a E O E E ca a � v o 0 0 '1 _ ° w s D o c o ° 0 3 � •� a L y o W C co u ++ u ro 4+ C. ++ y, v� u L a v) a ++ > on O u a C u a u o C a a u O. o a u a p Q L 4- Q L Q of a 4� v, Q O u 0 Q 41 a s f0 .ft u ZS a Packet Pg. 1377 OY L O U v `' N m 4-.. Q �, as N as 3 O 3 0 N 4- O a o Cs s - c _ U a Qj O L W H O CZ ._ !� V C V) •� .Q O � a+ Q) 4.1 0 4OD C cU >: O Q) O c ° o c O m vi O O O v � Q) Ll H v, as U Ll CC +- t sl 13 Qj + m N. 0 _ QOJ ++ �� a Q i E C t o v fl u to r3 m = � +� v :3 Z u o E m Z of o m o o as o Q i E > a c v v `" � A = U o a N � O V) N Q. c 4- Q p B c N O N > u 0 O c Z 4, O O > .y a .- v tOC3r �i 4fii U O vi c O t5: O! C. v Q fi' at +. -L3 O v LO CS _O O SZ f+ `3 N O f Z co 4J 0 c. ,ts; v O � r N D � 3 �' c � v cII v 'a � > O 4- aJ cn a i O j' V am CZQJ w N Z o 0 CD Q) v v a ci� n, o v bi +� +' n� o` c ns L o E m a y � o o Ln v o C) �. o L > 0 >' a nU, c �+�, � a ,o a a ° o tn �' o oa �;' o ° 3 0 v a d ca o=i a m CZ z c ea a N +r c� o m o o cn °o a a = ° a = c °0 oo c ° Lo as �. c o 4- a, E �, _• ,� o m v o n ? U a —o o a _ °v zs a, .0 u 4, O o ai - V O O V L i d f0 v O v 4- r CL 0 a, Q a o m �, +, > O 4- �u LA e cis A w ga y �u O h L � .> v Q N O > O O . � o s O U = Z ° - U v_ E O > Q E E U a E o. � :a U a) O U Packet Pg. 1378 6.A.a N IL � 1 c m E N Q v- O C cC d. Cl) Co M L 0 Ur U O C a 0 0 � c 4 i O CL m c cc L cc tio 3 a, a > N v . '�^ E s ° c a u CU U C !. u `p U a� a Q > 3 U O r=o v o a o a a zs D °' > v n� l7 u 4- *' a U v 0> ° no.Q O N E o°E ° o E a m E o N L 3 y d L _ f0 of ° ° c o n sZ z a ° Y U tin v y H Q v o N N C 9 +> ° n f2 m a--• 'L7 ++ L N s o a o on E '�, E - 3 E a 3 v a H L v .C' v m E v ro .0 N ° fy6 (yO ,� Q. 'aU'+ "O " a @ ` � O '+>_+ OVA � m ° ru Y i � " ° v v y m u m °� v Q .0 m o @ s Q a w v rf CO �- U o v u O o y Q w u E o a o a� w 3 3 � a�Ei y, L M = o a E is C6 v v) u a rc o; a 1a r-i r.i m Packet Pg. 1379 6.A.a a� E N O 4- O C _O d Cl) 0 M L O > j 4- O CL 0 _ v L m L M� W _ ..0 C N 0 G C E O r G O O o@ tin " O N 0.0 QJ f0 ' ao v v '� > E a u o : m in- E_. > '6 N Q1 Q) ° 'l N O "' v Q N Q) QJ C u N ++ Y Q °cD 3 L m m °u u <D v a, v s CU > N m u u '� O C m Q1 4/ = C O O Op ° .0 G ° E N v ,00 Q v o v � " a, o _ ° v m a .? G vi oD <t - t > v v W E E C O o v Q oDc' C v m Q m c 'A v ? G E a. m v O -0 o -a a, o a... N N = m m U Q . OL 'U m 03 -C O C Q) ao °-D N a c .- E E a c � t m c o " °1a •- v w a �H • N N L V cr c OL m :3 u N N =3 m -0 E QJ 0 m °' U Vn "6 T m O L v ° m ,c H 3 � +' >, u c 0 O v N t� w Q1 'a_+ u G L2 mm O o ,4, U- L O a5 O �•- ED ° m — a0'O to U L N m rYO 'L u c -c > `� +N., U G O O L. 3 ..0 v "- = N G QJ O_ N O .O Q G Q) L G O L r- Y. m. Ll M 'O O N •`n m E `^ T "O G +.r 'U 0- m m Y _ Q1 Y E 7 C G/ ±+ G L c ;�,, �.. c '6 ±' .,_, Q) ob ..°. = u v 3 E Q) u r° a c 3 0 m m m r ? a u m E c m N L v Q L Q O C C G E > m v v o_ v `-' o Y o u v G o E °' E c s c a m _c _ �, oD a; - o f °q Q N 4= Q) G O i G m L a+ G N 7 `' 3 u FQ. > m U G ° V Q V -° 4L- C O m 0 L L 0 o m Y 4-- U Q1 G hD m 41 E > m G G E =`a U m o L Q) G Q1 w C G E d L N a, m _.. d L m L a- N .� Ll. U QJ m N U ++ .� E m v c ;n O m S] v a c i N o u a Q d� Packet Pg. 1380 6.A:a ) ) E N Q v- ,^ O _ O CL LO M L O C N CL 0 �a c L M� W C V C L cn N O ++ fib C V .C. U a) T R p N a-+ L d tioO '> a_ C > L a) Y O v aJ 4/. C @ G '!6 E O� O V v. '6 �"' v t6 U >, N L. 7 -° •O O O O v a) iZ Y lD Q. vl V M CL Ln c fu o C as o f a cc E 3 rn p a) u O O v o o aj 3 c c ro f6 c E p N p O. O u Q. C �: N V) a). ' '� a) r6 u H •}, al L]. = p a) O ±+ y > C .L1 .v a 'i-• O E 'Y Y Y v bA O: f4 Q p i1 fl_ a) '� 'v to .= y �O u +'_O G -p _m v p T Y C f34 y _ T Q) Y @ Q C = as >� C C Ou O_ O A ++ .�'. d f0 C u f0 r4 L. Vf u M O @ C a) Y 0 m cn a) in O Q O >`. C L R a! w !`� a) F+ u Q Q '> 'O `� O C �O to > ' aJ VI Fu _ aj o c c a > ro E w c v = vi b) v ° tin a� N ° C .E C '� •f9 R:: C L al C a) C f6 i l6 •� C N td ..0 C p M a) v_- Y ? 3 u M M O o E n u ++ +. y y a L Y ra Y n — CL aa) c I - E c ° ° n ' y o eo 3 .E a = > E 3 �° o � o aJ. E i. E u of in C a) O a) -0 •D '�'' fa E C E p y O t a) m > rn O N O > > 0 r"D O. E L C: .o cn EO— Q. o O D- O Q) vi E E -Q) a C L O O n E ° m } M = ¢ ° -p E a) E u s 5 ' L t0 � ° a) a) `° � . n L v v u � — R bA f1 U in fY U 4- a in O_ i IY ro 6 > L v a w o Qj cc u CL r6 vi �o Packet Pg. 1381 6.A.a c a E N 3 4— O R a. M > > LO Co I - M a 0 O a 0 c L L Ma W B a-a fp Ln a @ _Q c a a -Q c O : N aj u O > O �L C a Q. Q C = a' — C u O +-� a Q. O a O O .B 'O y tC O bo U O. O 'a i .J O m ''"' E E Q .Q i C Q v� C Cu +- f1 p U u O_ C O_ •- +-• ra fO C a ca =O a Q m > c o u '� > o y ',, n o c > .a C lD Q i- a > cn a v u = i > O [s a v 5 a a .1- a 0 Q � c +a Q y as a a a s E ° E o E m w a y 'u s " `° s E Q o atl0, ° a > In y ° fl- v a; Q n a L '' a s 3 Qu bA cD a Q ++ +� OD 'LS E IB U m L = L _a a 3 Q CL p p i > Q C C N U C Q N > v a s Q l6 a O a ++ �o u L n a S O S CL c a a oa a > Q u E c E a� o m E y L2 o m `-' o E C w Q v a w Q v ° " O +% E ° N E O r+ n w a O p ti O — Y a v C c n v C o ate, -a > E v `0 n o a) o > ° o .L W co a N Q rp (4 a a fl. r_'' �, O +� E a Y C Y_ N -6 0 O C 'a -p }, Y C O Q ca � s - > E a N E E '- m `o E a cc a E C a N a a� O *� E a E E i v a 4- Y a > a a: u a y U O ca +, Q a O m O _ �c f4 +� �' @ a O ..O �v O 0 VI N Q Ca a E C1D Y O > U a L � L B a 4- U 7 V wQ- d rQa a0i a. ,'� a d .E Q U OD u a a ° = to u Q .� 3 C p v -o C. m `u t�ii M Q a a a = 41 41 N U O a CC w Uf a L' W Packet Pg.1382 k / § f 0 . E . 2 � � > \ / . b > | . 0 | 0 § a 0 . E I 0 E -0 / » ® / / / u ƒ / / 3 / _ \ \ ` D 2 6 \ $ 7 2 » % 0 = E E \ /« ` ~ ® . 0 E - a = ° 9 % \ _ ' « ° E ( \ § u \ ) / ƒ \ $ \ � 5 \ \ \ \ - S = 2s eU c e - e ( \ a w5 / k ± 2 0 M _ ± 3 CL ice « ® 5 = f \ \ \ / \ /\ \ » \ § \ ( / \ » g £ E > - - / e ® = Z E a t G c = ® a O ° / @ y a f � � J / 2 \ (u ra , n & [ 3 5 E _ / - 9 ` _ - ) 2 ; . 0 _ / u u a E m \ / & \ \ y = ® 7 \ [ t \ « g » 2 s c g c ƒ ƒ E 5 g � E / § _ » / / \ / t � 2 % # » & » 2 } f ° 3 _ e E 3 a \ o \ { , $ / / _ c m \ / . a \ / \ E ` w a g \ / \ . m -0 _ \ � \ % \ 2 � � � \ \\ \ J � � � \ \ \ \ 0 E > E w E S ou 5 E e u / % G [ 2 E © = n ° / S 9 u - - - r [ .- 3 u 5 6 U S / , a a Packet P$ 1383 2015-71: Aipprendi OP'E'' TING PRAC110ES FOR GOOD GOVERNMENT Common Council`. 1) The role of the Common Council is legislative in character,which includes the power to set policy,approve contracts and agreements and undertake other obligations consistent with the Charter and Code,while deferring to the discretion of management and staff to choose the appropriate means to achieve the Council's goals. 2) The Common Council will make the necessary decisions to expeditiously exit bankruptcy,as well as develop and implement a strategic and tactical plan that ensures the City of San Bernardino's C success in the foreseeable future. To this end, it will comply with Judge Jury's order to produce E a confirmable Plan of Adjustment by May 30,201.5. y 3) The Common Council will proved the resources to pursue the City's best interests in bankruptcy Q court along with a robust communication plan to inform the citizenry of what is at stake. o 4) The Common Council,as the elected body serving all of the residents of the City, shall perform _M its duties and exercise its powers in a manner that serves the best interests of the entire City, o. rather than any particular geographic area or special interest. LO 00 M Mayor: > 0 v 0 ' 1) The Mayor will build consensus with the Common Council to create and implement a shared vision and plan of implementation to restore the City's fiscal integrity. o c� 2) The Mayor will establish and maintain partnerships and regional leadership roles to advance the o City's interest. c 3) The Mayor will be the key"face"and chief spokesperson for the City. F I 4) The Mayor will be the presiding officer at meetings of the Common Council and will fully Q participate in discussions. m Cn 5) The Mayor will,consistent with the separation of powers contemplated by a reasonable reading of the City Charter, not interfere with the discretion of the City Manager in the exercise of his a) powers and the performance of his duties under the City Charter, 6) The Mayor will work with the Common Council and City Manager to coordinate goal setting and the performance evaluation of the City Manager. a Mayor and Common Council: 1) The Mayor and Common Council will jointly develop clear expectations of the City Manager and hold him/her accountable by conducting performance evaluations at least every six(6)months. 2) The Mayor and Common Council will develop and implement norms(Code of Conduct)to guide and direct their interactions and duties, including measures to hold one another accountable for deviations from the goals and principles set forth in the City Charter,City Code and these Operating Practices. 1 Packet Pg. 1384 20t5-71 3) Neitherthe Mayor nor the Common Council will interfere with the judgment and discretion of management staff with respect to the duties that are typically managerial in nature,such as the appointment,removal,and supervision of subordinate staff. 4) Neither the Mayor nor the Common Council will direct departmental staff(other than those Ih their own departments). City Attorney: 1) The City Attorney will focus his attention and resources on the performance of his duty as chief legal officer to provide legal advice to the Mayor, Common Council and City Manager,and the management of his office,and shall leave the formulation of policy and managerial matters exclusively to those officials charged by the City Charter with those duties. m E City Manager: N .a 1) The City Manager will be the sole authority for managing City operations and directing City staff Q in those departments under his supervision. ° 2) The City Manager will make business and policy recommendations based solely his or her M a independent professional judgment and best practices in the best interests of the City,rather than political considerations,and to this end shall strictly guard against interference with the M performance of his duties. 3) The City Manager will have both the authority and accountability to produce a confirmable Plan d of Adjustment for Common Council approval by May 30,2015. 0 4) The City Manager will be responsible for implementing the Plan of Adjustment to ensure the W City exits bankruptcy as soon as possible. °c 5) The City Manager will be accountable for the implementation of Council goals and policy and o the overall performance of the City. 6) The City Manager will be responsible for ensuring that the Common Council and Mayor are fully c informed on all aspects of important emerging issues, and as part of that responsibility will fully d m brief the Common Council at their Council Meetings on business matters before them. _ c� m Signed: as E y' d Date.: R. Car y 7Aq is, ayor _ Date: Virgi a z XMemb , Com mon Cou cil Date: l 1-. B rios Member, ommon Council 2 Packet Pg. 1385 �VIJIII A, Date: John Valdivia Me r ommon unc'l Date: Fred Shorett Member, Commo Council Date: 1 MN is ~� b Cn n C uncil E N Rikke Va hnson ' mber o imon unc l Q Jame Mulv ill e Common Council CO Date; Gary D. Saenz o City Atto rn y a Date: _ Allen J rker �� a City Manager L L m lC E U R r Q 3 Packet Pg. 1386 Appends 6.A.a Findings and Notes from the March 18-19th Strategic Planning Session Current Context Conversations Management Partners presented their high level findings about the current city context. They presented a compelling history of decline that today has resulted in: Low median household income High poverty Low education attainment High unemployment High crime rate E Declining share of assessed value y • Declining share of income * Declining share of population o C Their analysis shows several major themes behind the decline: a M • A commitment to service delivery and the community, but few tools to deliver.An co organization that is unable to support even average service levels. • Long-standing, systemic organizational dysfunction. Organizational culture is in disarray. 0 • Leadership confusion: who's in charge? • Employee recruitment and retention issues. C Lack of trust and accountability. Inconsistent management or policy framework to support informed decision c making. L Information technology is a low priority. F m Their assessment of the underlying cause that the city is operating on a dysfunctional city charter. E This input was then followed by an in-depth dialogue of the Core Planning Team. Their comments included the following concerns and recommendations: Q • We need a shared vision and operating context/framework to hold leadership accountable to deliver what our city needs and wants. • We will need a 2-part process to bring city government from dysfunctional to functional.The four entities(Council, Mayor, City Manager and City Attorney) need to agree on a new management construct.The second component is that they all need to agree on re-writing and or repealing the current city charter.These parties need to go before the public and state their rationale and commitment to these two steps. • We will need to make sure that we educate the voters on these essential steps in the Plan of Adjustment and the need for significant change. In addition,there is a need for the public to hold the entire leadership team accountable to these changes.There should be a public signing ceremony. 1 / 32 Packet Pg. 1387 6Aa • We should consider maintaining the Ward focus and have council members elected at-large. • We need to eliminate the inconsistencies in governance so that developers feel comfortable coming to the city. • People in power need to relinquish some power for the good of the city/people. Put the interests of the city above their personal agendas.All elected officials need to be aligned around the interests and needs of the city. • We need to tackle the real issues that got us into bankruptcy, At the conclusion of this conversation the Core Planning Team asked Management Partners to provide a draft"Leadership Agreement" that the team could discuss and alter by the end of the strategic planning session.The document was prepared and presented on the morning of day 2. Generally the Core Planning Team was in full support of this approach. The Core Planning Team identified the following possible changes to the draft document prepared by Management Partners: E Feedback specific to the Leadership Agreement: • The intent of this work is to create effective and efficient operations for the city. Q We want to focus on this outcome and indicate that an initial step is around the o Leadership Agreement and revision/repeal of the city charter. • For this Leadership Agreement to sustain and work we (Core Planning Team)need 0- to have a continuing and active role in supporting this work and holding the LO co players accountable. This team could be part of a regular feedback and review process specific to the Leadership Agreement. • We will also need to create a new perspective about the role the public plays in o supporting the work of the city leadership and government.They will also need to 0 have a new perspective and set of behaviors that support the work. e� 0 • We also want to propose that the work of the Charter Revision Committee is re- tasked to one of repealing/re-writing a new charter that reflects effective and . efficient city operations. • The role of the Mayor needs to be clearly articulated as the key shaper of the city image and the key representative of the city. m • We need to be certain in any new agreement and/or charter that we are very clear on our terminology and the roles and responsibilities of all the key players. • Specific mechanisms for collaboration, transparency, communication and codes of conduct need to be articulated in the Leadership Agreement.Accountability E mechanisms need to be built into the process as much as is possible. • Process that is very transparent to voters and builds an effective case for change. a • We need to be more explicit on#4 as per recommendations of Bob Deis. • Under City Manager- clearly stated that City Manager will serve as the "CEO" and is accountable and responsible to the Council • Clarity around the "code of conduct" and rules of engagement for the Big 4. • It may be useful to have a referee of sorts or mediator to hold the Big 4 accountable. • Inclusion of roles and responsibilities put inside a contract for the City Manager. • Clarification of the roles of the Council and the Mayor specific to accountability of the City Manager. • We need a commitment of the Council members to self-police. • #2 & 3 need to go under Mayor as well. • City Manager-sole authority for managing and directing staff. 2 / 32 Packet Pg. 1388 #1 under Mayor and City Council- consider quarterly pulse checks. We need to be more direct with our wording- instead of"will avoid" it should be ii will not"; for the Mayor, instead of"a key face" it should be "the key face" d We need to be careful that the language is not too legal-we don't want to run into legal interpretations or limitations. ® Replace word"power"with authority and responsibility. Performance evaluations for council members that support and provide constructive feedback. We want to continue to use Management Partners to support our work. • We may not need a full time Mayor. A small sub-team of the Core Planning Team worked with Bob Deis over lunch and brought back a revised draft for consideration by all members in the planning session (Core Planning Team, City Council,Mayor, City Manager and City attorney).The completed draft is appended to this document and it received endorsement by all members attending the session. E U) Q Looking to the Future o _ This section was a four-step process.The first step involved and overview of the results from the Town Hall meetings and the Community Survey findings. The second step LO involved watching a video that reframes the nature of visioning- how to switch perspectives and modes of thinking from the current patterns to new patterns.The third was a dialogue among the Core Planning Team to identify those possibilities that would be 'o inspirational and commitment-building. The last step was to focus down to the most important vision elements. o Step 1: Town Hall Meetings and Community Survey Results: In these processes, participants were asked about existing assets, possible futures and key changes they would like to see.The results from both processes were fairly consistent. c The tabulated results from the Town Hall meetings were as follows (What are the 3 m changes you would like to see for our city?): r Community Infrastructure (22). _ Street improvements,lighting,parks,trees,walking&biking, dealing with homelessness. _ U t4 Public Safety(17) Q Reduce crime, gangs,graffiti,get rid of illegal marijuana dispensaries,increased community policing. Pride Community Ownership,Volunteerism (12) Volunteer programs to clean up and restore neighborhoods and the community; community empowerment, involvement and ownership for the city. Programs for Youth (121 Activities for youth; job development training for youth; live here and play here. Community PR and Marketing(11) 3 / 32 Packet Pg.1389 Marketing a positive image; customer service in government; efficient government operations;showcase city assets. Attract Retain and Support Local Business (11) Business friendly environment,zoning changes,lower business taxes, programs to support local businesses. Health Government-Code Enforcement(10) Code enforcement;get back to the basics of city services; government officials who live in and care about the city; restructure city charter; accountable city officials. Create a vital and attractive Downtown Hub (8). Restore downtown as a focal point with vendors, arts, farmer's markets; sports center. Planning Process (Sl Coherent planning and redevelopment processes that are transparent to the community; economic development to create balanced economic demographics. Q 4- 0 c Step 3: Dialogue Process-Inspirational Elements of an Emerging Vision a CO) The Core Planning Team dialogue resulted in the following initial vision elements: o • A place were my dreams and aspirations can come true-a place where everyone cares for each other and where we feel responsible for each other. A place where 0 we truly embrace our diversity-a place where we have celebrations of 4- diversity/culture every weekend. 0 a • For the city to succeed it needs to do so in partnership - partnership with our °c residents, with our hospitals, colleges,business,etc.We need to focus on building "0 partnership that reflect our assets and competitive advantages - i.e. 66ers, hospitals, railroads, transportation, county government, Orange Show, San Manual. m cc Cn • The city lives the way it looks. d E • We will have a strong PR campaign that focuses on a Safe City.We have successfully marketed and branded our new identity all the way down to our street Q signs. • We will create a vibrant downtown area that includes a student run "hub of innovation". • We will have multiple types of sports activities for youth and other community members. • if you move to the City of San Bernardino you will succeed through education.We are a college going culture at the highest levels.We will have a campaign by every key partner that focuses on education and youth development.We will be known for being a college and career ready city that raises the bar for all students.We will 4 /32 Packet Pg. 1390 6.A.a start our campaign at 0-36 months. Imagine a picture of the All American Sign wit all the leaders and partners literally drawing a line in the sand. .� . We will "dial down" on housing- strong code enforcement;effective processes for landlords; crime-free certification. ® We have an efficient and effective governmental system that connects with other governmental systems and focuses on the shared goals (collective impact).We have leveraged our impact through our efficiency, collaboration, shared focus and partnerships. Step 4: Focusing the Vision A second pass at the vision elements took place in the afternoon of day 2. Participants were still largely focused on finalizing the Leadership Agreement document and process. Because of this the author of this document has attempted to take a stab at this step based on the limited input from the team: ; • A place were dreams and aspirations can come true-a place where everyone c cares for each other and where we feel responsible for each other. An C empowered community that truly embraces its rich diversity and a place that a is safe for all of its residents. to Go M • A city that is built on its competitive advantages and its assets and one that leverages these assets through committed and collaborative and interdependent partnerships. d • A city where all young people will succeed through a rich interconnected web C of educational supports. A city that is known for being focused on developing n. 0 college-bound students. _ L • A city that recognizes the importance of homeownership, one with strong code enforcement and effective processes for working with landlords. M M Cn • We have an efficient and effective governmental system that connects with c other governmental systems and focuses on the shared goals (collective E impact).We have leveraged our impact through our efficiency,collaboration, shared focus and partnerships. a Possible Areas of Strategy and Approach The last component of work over the 2-day planning process was to identify some high level areas for strategy development.The workshop method was employed for this work. The guiding question was: "What steps or actions should we take that will bridge us from our current state to our desired vision for the future?" The following categories were identified with their associated possible goals and actions. The numbers next to the category header represent a rough polling based on two criteria 5 / 32 Packet Pg. 1391 "_.6 A.a... -what is most urgent and what category will build the best foundation for success in reaching our vision. By consensus the"Leadership Agreement" category was seen as most important and as a prerequisite.As such,no votes were cast for this priority-it was taken as a given. The "Leadership Agreement" • Implement common council/Mayor/Attorney/City Manager agreement • The Big 4 and the 17 Core Planning Team to make a public declaration I fron of All America City sign. • Consistent accountability of stakeholder to"Leadership Agreement". • Learn from our missteps but still be willing to take risks. • City and community leadership hold themselves and others accountable. • Voter education through community partners to create support on new "Leadership Agreement". • Improve the city climate. c E 0 Safety and Crime (14) • Marked reduction in crime Q w • Signs on homes and businesses with message of safety in the neighborhood-i.e. _ Neighborhood Watch programs. a • Create safe zone in different wards for kids to be safe from gang violence and gang Cn recruitment. M • Addressing crime through strengthened and empowered communities and neighborhoods.: � • Improve community involvement in improving the city's appearance and public 0 safety. W 0 _ Housing (10) a • Full implementation of city-wide housing receivership program. °c • Stimulate city-wide increase in homeownership rate (+10% within 10 years). • Create a program of housing incentives for teachers, police, fire and city personnel. • Strengthen code enforcement ability to sanction absentee landlords with blighted m properties. in • Reduce poverty by empowering existing residents and attracting higher income d and educated residents. E Education and Workforce Development (9) a • Develop and provide unpaid training locations for student trainees. • Develop a city-wide commitment to a college and career-going culture. • Resume intake center specifically for the residents of San Bernardino. • Work to retain students graduating from SBCC and CSUSB. Community Engagement (9) • Identify and enlist community groups to advocate and communicate our shared vision to others. • Create a culture of community engagement, education and transparency • See more signs of positive action in the City- i.e.murals, no encampments • Work with grassroots organizations to foster pride in our city. 6 / 32 Packet P4. 1392 • Clean.up of city gateway beautification • Determine the top 5"doable" community suggestions to be implemented immediately. • Establish a"San Bernardino Cares Day" quarterly • Visible rehabilitation of streets Business Development and Partnerships (8) • Provide incentives for businesses to locate in San Bernardino. e Consider utilizing the "Launch Initiative" as a collective impact hub for community revitalization. • City Council creates"enhanced infrastructure financing district" as post- redevelopment investment structure. • Re-work our city processes in order to become more business-friendly. • Work with local business to expand partnerships. Y • Create a committee to work on partnerships with all possible partners to take advantage of our current competitive advantages. E • Look beyond our city for expanded opportunities. • Stimulate city-wide business development and entrepreneurships. a w • Formalize a collective impact"charter" with key interdependent partners. _ • Integrate skilled faculty from CSUSB and SBVCC into addressing city issues. a • Municipal code and ordinance review and overhaul. • Market the airport for passengers and freight. o « Full scale effort to active airport. d U Public Relations (5) • Public relations campaign to highlight the right things about San Bernardino. • Work with local media(Sun, P.E.) to get more positive coverage of the city. a. • Develop a public engagement marketing approach to ensure entire community 0 �a involvement. a • Quarterly Community Roadshow meetings throughout the city. • Expand the loal TV channel. m • Connect better with KVCR CO c E Downtown (0) r • Rebuild downtown with attractions for younger residents, including restaurants, Q etc. • Human Relations Commission- (0) • Reactivate the Human Relations Commission 7 / 32 Packet Pg. 1393 67a San Bernardino Strategic Planning Process February - May 2015 In February of 2015 the City of San Bernardino initiated a Strategic Planning Process designed to integrate with, and provide guidance to the City's plan to exit bankruptcy,the Plan of Adjustment work already underway. The Strategic Planning Process was designed to be community-based -that is to use community input and community leaders to build a new vision and a set of high level approaches to bridge from the current state to a revitalized city. Because the process needed to be on a fast track to support the Plan of Adjustment and May 30 deadline with the courts, the initial phase of planning was truncated from more typical planning processes.A set of five Town Hall Meetings were conducted in February, one in each city ward. Y Over 600 people attended these sessions in which they were asked to identify both city assets and key challenges in revitalizing the city. Participants in these events were positive and excited U) to be included in the process. The detailed input from these sessions is appended to this document. a 0 In addition, an electronic survey was made available to residents across the city.Approximately a 450 people completed the survey. The results from the electronic survey and the Town Hall meetings were consistent. The detailed survey results are also appended to this document. cc M Seventeen community leaders from education,business, county government, non-profits,faith- based institutions and other sectors were invited to participate in strategic planning session on 0 March 18-19, 2015.The specific outcomes for the session were as follows: 0 _ 1. Build shared understanding about the current state of the city and the requirements of the a PDX 2. Develop a new inspiration for the city- elements of a vision. 3. Identify the specific internal and external patterns that will need to be addressed in order to achieve a revitalization of the city. m 4. Develop a new context and set of high level approaches for the city. This two-day process was open to the public and designed in a unique way. Because the City Council will ultimately adopt both the Plan of Adjustment and the Strategic Plan, the council E members were invited to have a"seat at the table", and yet assume a listening mode. In this way 2 they could be directly informed by the thinking of the seventeen members of the Core Planning Team and the planning could be truly designed by the community. The agenda for the two days was simple in its design. The first day was focused on building shared understanding of the current city context and initial visioning,with the second day to be focused on further visioning and identifying high level strategic approaches. A copy of the agenda is appended to this document. Although simple in design, in reality the current issues that have surfaced in the Plan of Adjustment work appropriately dominated the attention and concern of the Core Planning Team. As a consequence,the vision and strategic approaches need further refinement that will come through a series of work sessions between March 23 and April 23rd,with their input coming back to the Core Planning Team on April 24th. 8 /32 Packet Pg. 1394' 6Aa Major Findings, Results, Recommendations and Directions 1. Redefining and reformulating the relationships between the City Mayor, City Manager, City Council and the City Attorney is imperative in order to move city governance from being dysfunctional to functional, and eventually to deliver effective and efficient operations erations throw hour the city.A full strategy and process was proposed and designed ned for this purpose. See attachments for the document developed and approved by all parties. Formal voting on this process will occur at an April City Council meeting. 2. The Core Planning Team centered their vision discussion around S key themes: • A place where dreams and aspirations can come true - a place where everyone cares for each other and where we feel responsible for each other. An empowered community that truly embraces its rich diversity and a place that is safe for all of its' residents. _ d E Y • A city that is built on its competitive advantages and its assets and one that leverages U) these assets through committed and collaborative and interdependent partnerships. Q w 0 • A city where all young people will succeed through a rich interconnected web of educational supports. A city that is known for being focused on developing college- o. bound students. LO 00 M • A city that recognizes the importance of homeownership,one with strong code enforcement and effective processes for working with landlords. o a� • We have an efficient and effective governmental system that connects with other o governmental systems and focuses on shared goals (collective impact).We have leveraged our impact through our efficiency, collaboration,shared focus and o partnerships. L 3. Throughout the conversations several core planning principles continued to surface: m • The importance of building strong, interconnected partnerships focused on mutual CO shared goals and values - collective impact. • The imperative to actively involve and communicate with all residents of the city. E Community empowerment needs to be at the core of all the work. The best answers U and active support will come from the community. Q • The work of the city and of the planning process needs to be transparent and accessible to all residents of the city. • Voter education and engagement will be key to the accountability and ownership that will be necessary for city revitalization. • The importance of immediately responding to some of the highest and most visible community concerns in order to build credibility for the process. Don't reinvent the wheel. Build on existing assets and the work that is already going in our community and county. • We need to do the right things. The needs of the city come before personal agenda. 9 /32 Packet Pg. 1395 4. The last component of work over the 2-day planning process was to identify some high level areas for strategy development.There was consensus in understanding the interconnected nature of the identified strategic priorities, and that efforts need to go on at various levels both concurrently and in a staged manner relative to available resources. The following categories were identified with their associated possible goals and actions. These categories are consistent with the priorities identified through the Town Hall meetings and Community Survey. The numbers next to the category header represent a rough polling based on two criteria -what is most urgent and what category will build the best foundation for success in reaching our vision. By consensus,the "Leadership Agreement" category was seen as most important and as a prerequisite.As such, no votes were cast for this priority-it was taken as a given. Y _ E The"Leadership Agreement" • Implement common council/Mayor/Attorney/City Manager agreement a • The Big 4 and the 17 Core Planning Team to make a public declaration in front of o the "All America City" sign. _ • Consistent accountability of stakeholder to "Leadership Agreement", a Learn from our missteps but still be willing to take risks. d City and community leadership hold themselves and others accountable. CO ® Voter education by community partners to create support for the new"Leadership Agreement". 0'0 Improve the city climate. 0 Safety and Crime (14) _ • Marked reduction in crime a. 0 • Signs on homes and businesses with message of safety in the neighborhood- i.e. _ Neighborhood Watch programs. • Create safe zone in different wards for kids to be safe from gang violence and gang m recruitment. _ ca • Addressing crime through strengthened and empowered communities and N y neighborhoods. • Increase community involvement in improving the city's appearance and public E safety. c a Housing(10) Full implementation of city-wide housing receivership program. Stimulate city-wide increase in homeownership rate (+10%within 10 years). • Create a program of housing incentives for teachers, police, fire and city personnel. a Strengthen code enforcement ability to sanction absentee landlords with blighted properties. Reduce poverty by empowering existing residents and attracting higher income and residents. Education and Workforce Development(9) o Develop and provide unpaid training locations for student trainees. • Develop a city-wide commitment to a college and career-going culture. 10 / 32 Packet Pg, 1396 6:A.a • Resume intake center specifically for the residents of San Bernardino. • Work to retain students graduating from SBCC and CSUSB. Community Engagement (9) • Identify and enlist community groups to advocate and communicate our shared vision to others. • Create a culture of community engagement, education and transparency • See more signs of positive action in the City-i.e.murals, no encampments « Work with grassroots organizations to foster pride in our city. « Clean up of city gateway beautification • Determine the top 5 "doable" community suggestions to be implemented immediately. • Establish a"San Bernardino Cares Day" quarterly • Visible rehabilitation of streets E Business Development and Partnerships (8) ' • Provide incentives for businesses to locate in San Bernardino. Q • Consider utilizing the"Launch Initiative" as a collective impact hub for community revitalization. f6 a • City Council creates "enhanced infrastructure financing district" as post- redevelopment investment structure. CO CO • Re-work our city processes in order to become more business-friendly. M • Work with local business to expand partnerships. • Create a committee to work on partnerships with all possible partners to take 0 advantage of our current competitive advantages. W • Look beyond our city for expanded opportunities. _ • Stimulate city-wide business development and entrepreneurships. a • Formalize a collective impact"charter"with key interdependent partners. _ • Integrate skilled faculty from CSUSB and SBVCC in addressing city issues. • Municipal code and ordinance review and overhaul. • Market the airport for passengers and freight. m • Full-scale effort towards an active airport. rn c E Public Relations (5) • Public relations campaign to highlight the right things about San Bernardino. a • Work with local media (Sun, P.E.) to get more positive coverage of the city. • Develop a public engagement marketing approach to ensure entire community involvement. • Quarterly Community Roadshow meetings throughout the city. • Expand the local TV channel. • Connect better with KVCR Downtown (0) • Rebuild downtown with attractions for younger residents, including restaurants, etc. • Human Relations Commission - (0) 11 / 32 Packet Pg.,1397 • Reactivate the Human Relations Commission Next Steps for the Planning Process: The Mayor, in consultation with Management Partners, presented a set of proposed next steps for the Strategic Planning Process and the Plan of Adjustment. It is essential that everyone is working on a very tight timeline between now and May 30, 2015, , d Teams of city staff working with content experts will take the initial strategic thinking y identified in this document and develop goals and enabling strategies on the priority work. This set of proposed plans will come back to the Core Planning Team for a full day planning Q session on April 24th = a M LO M a L d 0 U d 0 0 a 0 c E. L M 0 L d m 0 0 Cn i+ d E U f0 r Q 12 / 32 Packet Pg. 1398 Aipipen+di Agenda for March 18-19th Strategic Planning Session San Bernardino City Strategic Planning Desired Outcomes: 1. Build shared understanding about the current state of the city and the requirements of the POA. 2. Develop a new inspiration for the city—what we can become. 3. Identify the specific internal and external patterns that will need to be addressed in order to achieve a revitalization of the city, v 4. Develop a new context and set of high level approaches for the city, E 5, Identify specific process steps that will get us from where we are today to our new future—involvement, engagement, etc. Q 0 Agenda Sequence: r_ a 1. Welcome and Framing 8.30—9:30 LO co A. Welcome by Mayor B. Introductions of Facilitators and Introduction Process L 1. Introduction of Planning Participants o C. Outcomes for the 2-day planning process W D. Role of Council Members and Public Input o E. Review of the Agenda Sequence n. 0 c E II. Current Context 9:30— 12:00 c A. What is the historical background of what happened that gets us to our circumstances today? m B. Plan of Adjustment and the connection of the POA to this Planning Process? N Managing Partners. C. What did we learn through the Town Hall Meetings and the Community-Wide E Survey? D. What are the key insights that we want to bring into our thinking as a planning Q team? • Small group followed by whole group conversation. Include council members into small groups Lunch Break 12:00— 12:45 Ill. Creating a Powerful Future for the City of San Bernardino 12:45- 2:30 1. Community Visioning e Small group process Packet Pg. 1399 i Whole group conversation o Distillation of key vision themes—goals and principles IV. Public Input 2:30 3:30 Day 2: 1. Building a New leadership Contract 8.30—10:00 1. Input from Management Partners 2. Questions about the intent 3. What changes would you propose, and why? 4. Reactions and comments from key players in strategy. S. What need to be the immediate next steps with this strategy? E N 7 'O H. Continuing the Vision Work 10:00—12:00 0 0 Small Groups A. What seem to be the most compelling elements of this vision? a B. What would be the sequence of these elements � 00 M Fishbowl of Core Planning Team— Goals, principles,driving beliefs and possible Dilemmas 0 IL II. Key Tensions and Dilemmas 8:45—10:30 U w A. Understanding our current context and the desired future- What might be the 0 big dilemmas, paradoxes, issues that we will need to address in our strategic plan in order to be successful? _ E L Ill. New Context for the City 10:30—11:45 c A. Given what we have learned about the restraining patterns, what new context CO do we wish to create that will actively enhance our positive patterns and rn interrupt the restraining patterns in our current trajectory? as IV. Broad Approaches and Strategies 12:30—2:15 s A. Given the insights about our new context,what broad approaches will be called for in our new strategic plan? Q B. We may want to do the Workshop Method C. Next Approaches for the Planning Process V. Public Input 2:15—3:15 VI. Reflection and Summary of Next Steps 3:15—3:30 0 Packet Pg. 1400 ApOendi* Summary of Town Hall Meetings Key Themes Community Infrastructure 22 Public Safety 17 Pride, volunteerism and Ownership 12 E Programs for Youth 12 Community PR and Marketing 11 Attract, Retain and Support Local Business 11 10 Healthy City Services and Code Enforcement LO W Create a vital and attractive hub 8 An effective Planning Process 5 > 0 L) (D 0 C a. 0 What are the key changes people want to see? 0 Cn Restore the level of public safety - fire and police - visibility 17 High effective marketing, operations, customer service 4 Q E Review of City Charter- more efficient government 3 Youth programs and job preparation - pride in playing &working here - 2 students - job development 10 < Fix and improve city infrastructure - streets, lights, trees and parks - beautification - walking and biking skate parks 22 Retain and Attract more businesses- business friendly - zoning 7 Enforcement and prevention of crime and homelessness, code enforc 11 Establish a culture of ownership- community input and outreach 5 Stop doing projects tied to State, Fed and nonprofits 2 Start respecting city employees and stop going to private companies 2 Work on attracting small local businesses rather than big boxes 2 Dedicated, transparent and accountable elected officials Showcase our city's assets - market in a positive way- museums, etc Recycling -:Pa.c,ket,I Pg. 1401 6.A.a Senior housing 2 Coherent planning and redevelopment plan- transparency 3 Lower business taxes 2, Restore downtown - Local hub or focal point, vendor booths, sports farmers market 3 Sports facility as alternative to crime 2 Prayer back in school Get the airport working for the public Economic development, balanced demography 2 Get back to the basics of healthy government structure and function Take pride in your home and clean up neighborhoods 3 Small business support - improve access to businesses 2 Regulate marijuana dispensaries 2 Outsource police and fire m Increase family/felon/resources and libraries E Match the code to surrounding cities - higher development standards 2 Affordable housing for those on disability < Q Job development 4 0 Government officials who live in the city and understand Volunteer projects - community gardens, clean-up 3 a Apprentice programs in crafts. Electrical CO M d O U w- O C O a O c EL L m Cn Y CD E U Q Packet,Pg. 1402 Append . Next Steps Plat City of San Bernardino Strategic Plan March 2015 NEXT STEPS 1) April 2015 y A. Strategic Planning Core Team presents their work to the City Council in open session (4/6/15). E No formal action on the plan is taken but the Council directs staff to convene internal leadership teams to develop more specific strategies for achieving the Strategic Plan goals. Q 0 Note: this has two purposes. First,the City organization has to understand and own the new direction because they will have to implement it. Second, proven programs and strategies a. need to be put into place to effectuate the goals identified in the Strategic Plan. Staff is in the LO best position to determine. CO B. City convenes leadership teams to develop specific strategies to achieve the Strategic Plan o goals. 0 C. The San Bernardino Bankruptcy Team needs to review staff proposals and ensure the Plan of o Adjustment aligns with and supports the Strategic Plan, 0 L D. City leadership teams report back to the Strategic Planning Core Team as to their work L product and solicits their support. This combined work product,the Strategic Planning Core 0 m Team and City leadership teams, becomes the City's proposed Strategic Plan. 2) May 2015 A. The Strategic Planning Core Team and the City leadership teams present the proposed City of San Bernardino Strategic Plan to the City Council for adoption. Q Note:this can be scheduled with the San Bernardino Plan of Adjustment for Council approval on the same date. Packet Pg. 1403 6.A.a 3) Summer or Fall 2015 A. The timing of this next step is difficult to predict given the actual Strategic Plan,the City's Plan of Adjustment and the judges and litigants responses are difficult to predict at this time. However,the City will develop and implement a public involvement program that builds on the successful Community Engagement Program that was supported by the San Bernardino City Unified School District. This public engagement program will include:components of the Strategic Plan i.e. how it was designed, the rationale for the goals and strategies included in it and the programs that will be put into place to achieve them. It will also include the Plan of Adjustment, again with the rationale for the changes that will be included in that plan. The actual implementation of the initiatives in the Strategic Plan will be determined by a numerous factors, including: the litigation process and its timing,the nature of the N recommendations in the Strategic Plan, whether we need more resources and what we can accomplish on our own without requiring court approval. Q 0 2 a M LO 00 M d O V a- O _ O a 0 _ L �Q _ L Md W _ N y+ _ E V t/ .V Q Packet Pg. 1404 Amen Summary of Community Survey 1 Please select the language for the survey (Por favor seleccione el idioma de la encuesta): Answered;459 Skipped;0 Spanish (Espanol) C N English N (Ingles) 7 .O Q v- O 0% 10% 20% 30% 40% 50% 60% 70% $0% 90% 100°la i6 a c� LO 00 Answer Choices Responses M Spanish(Espanol) 1.96% 9 �+ d 98.04% s EngliSh(Ingles) 450. Total 459 O C RS a 0 c L L M� W C E V dd .ir Q Packet Pg. 1405 Q2 On a scale of 1-10, with 10 being high and 1 being low, how likely would you be to recommend a friend, relative or colleague to move to the City of San Bernardino? Answored:402 Skipped:57 1 2 3 'AE WRI i+ N 4 N 7 1� a 5 0 _ 6 n. cn 7 M d 8 0 y Q.' 9 O c0 IL 0 10 ca 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% L d m _ cC N Answer Choices Responses = d 1 31.59% 127 L V 2 15.42% 62 Q 3 14.93% 60 4 8.21% 33 5 12.69% 51 6 7.21% 29 7 4.98% 20 8 3.23% 13 9 0.25% 1 10 1.49% 6 Packet Pg 1406 , 6.A:a z� Total 482 0 C O E w w 3 Q O C R CL ch LO 00 M d 7 O V w- O C _R n. O C 'o L L M� W V/ i+ t V i� Q Packet Pg. 1407 Q3 If you didn't rate the last question as an 8 or above, what would have to take place for you to increase your rating to an 8 or above? Answered:374 Skipped:85 Improved educational... Morejobs High paying jobs Q E Safer community N 7 'a Vibrant 0 downtown area O C ca More people n. getting... M in Community M revitalization >+ L d Clean streets > and... V Q Neighborhood C pride R a 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C .a L L d Answer Choices Responses m C 63% 137 n Improved educational opportunities 36. � 52.94°/ 198 More jobs df E High paying jobs 44.65% 167 v N r+ Safercommunity 88.84°/ 336 Q Vibrant downtown area 60.96% 228 More people getting involved in community projects 27.27% 102 59.36% 222 Community revitalization Clean streets and neighborhoods 77.01% 288 Neighborhood pride 55.08% 206 tal Respondents:374 Other(please specify) Date Packet Pg. 1408 —._ _.-_. ._- i I Lower property.taxes 3!2/2015 4 59 1'____.r M �.,-.�,�.�......- more uses and healthier food � � �� d options 2/26/2015 4:32 PM { Better police services 2/26/201512:40 PM 4 improved housing stock,higher ievel of(non-public safety)pubt!c services 2/25/2015 5 35 PM 5 Better police services 2/25/20151.1$PM .��_ 6 Amore dlverse community,i mean real dversityi Different religions.Minorities other than'Hfspanic and Black. I 2/251201512:52 PM Encourage languages other than Spanish. t Rent that is not super high. 2/23/2015 8:47 PM higher success rate of graduates of SBCUSO students 2/23/2015 7:37 AM g Increase our police force,criminals know we do not have the manpower to protect the residents of this large city. 2/23/2015 4:12 AM 10 l remove gangs',more police and safety;safer schools with CEOs;get rid of"ghetto areas thatincrease crime 2/21/2015 6:25 PM 11 police and firemen who actually lived in the city 1 2/21/2015 8:57 AM 12 ! pollee crackdowns on gang related problems 212012015 8:22 PM E -.... ...--... _..- __.. -. — __ _ ++ 13: Encourage Business influx by incentives,tax moratorium,and enterprize zone initiatives. '212012015 4:36 PM 14 Stop the fighting within City Hall F2/2012015 1 1 7 PM Q O 15 Stop invhing homeless and building low income housing 2120/201512:15 PM 18. _ better city government 21201201$1148 AM d 17 remove the homeless from shopping centers 2/1912015 9:42 PM M 18 Speed bumps to make streets safer,more lighting. 2/191201511:26 AM ......._..._«........._.-.....�._._.�«... ._........_. ___ :.�... 4��..,.,.,_..-..... .._�. ..mow-.-_..-.- -�. 19 not safie top many bad people,not safe to even go to store } 211 34 O ti A 0 M > good management of the homeless"problem';stronger understanding of the importance of a vibrant public library 8l2015 M 0 system 21 A feeling that law enforcement cares about more than just getting a paycheck and telling residents they suck for I 2/1 81201 5 1 0:27 AM O C ii living here.(Yes,I've been told that] _ CL 22 clean up parks 2118120159:38 AM O C 23 i Stop wasting taxpayer money on stupid projects like the SBX that makes no sense at ail.occupy the vacant 211712015 8:42 PM buildings and malls before building new ones or knock them down so they are not eye sores,address the L homeless issue(again there are quite a few empty buildings that can accomodate this)pay close attention when tU planning on spending a budget and get quality work for our tax paying dollars;not like the Street re-surface on a i Sterling.fix street light that stay on constantly throughout the day and put lighting in dark area where it is much U needed.. .... ..... .. 24 more cultural activities 2/17/2015 2:46 PM E 25 Street need to be fixed,too many pot holes throughout ENTIRE city 2/17/2015 2:27 PM U 26 Fewertaggers/gangs.More businesses in the empty buildings.Fewer pot stores. l 2/17120151:55 PM Q ........ - . ....._-- _._ ... -- 27 It's time to stop writing off San Bernardino as hopeless!I believe San Bernardino was a great city and can be 2117/2015 12:28 PM again.I believe its leaders need to have vision and not dismiss the city as hopeless.San Bernardino is in an excellent location geographically.It COULD have a thriving downtown area like Pasadena,Riverside;Upland, Covina,Pomona,Businesses need to have an incentive to try out downtown San Bernardino.Other cities take their landmarkthistoric buildings and renovate them and turn them into jewels.San Bernardino tears them down. Other cities create lofts in their downtown areas for living and business.Make San Bernardino's downtown area safe and inviting..It has excellent freeway access to both sides of the city.We have the Orange Show Fairgrounds j that are under-ultilized.We've had big name entertainment therein the past,why not again?Instead It goes to Ontario and Citizens Arena.We have two outdated malls.We need to do something with them,instead new business goes to Redlands and the Citrus Center.San Bernardino has so much potential! 28 Cooperative politics 21171201510:20 AM { Monies for in class problem/project based learning supplies to engage students,parents,teachers and 2/1712015 9:46 AM community in reall'rfe,problem solving and employment based scenarios. 9 30 keep promoting entitlement will not help revitalization 2/1712015 8:49 AM Packet Pg. 1409 6.A.a 31 less graffiti,less low income housing,less homelessness i 2/16/2015 5:14 PM 2 decrease influx ofwelfare/unemployedpeople 2/16/20153:07 PM i UMilthe Cityof S.B.can get outfrom underthe boot of the Police and Firefighters unions and renegotiate 211 61201 5 10.44 AM reasonable pay and retirement,this city will continue on the road to financial ruin. 34 As an educator,it is very sad to hear that my students have to lay on the floor because of drive by shootings, 2116!2015 9.13 AM There is not enough police protection in our neighborhoods.it is not safe to be out at night.Drug deals are done in broad daylight, i 4. 35 If you don't speak Spanish don't bother coming here 2/15/201510;3$AM; 5 AM 8 7 _ 38_ ( Bette/cops 211512415 _ _ 37 more cultural activitles,support for libraries,museums eto. 1 21 4/2015 8:19 PM 38' 1 More Police Officersl 2/14/2015 4:37 PM 39' get rid of the thug element 2/44/2015 2:08 PM 40 Less politics especially in the SBCUSD specifically the superintendent Marsden. 2/14/2015 9:48 AM 41 ALL elected officials being more honest in telling residents the truth not what residents want to hear then shaking 211 41201 5 6:07 AM N it off;honesty 42 Get rid of the monthly garage/yard sales,they area further blight to the city streets with the raggety yard signs that l 2/13/201511:38 PM Q stay up for months.Besides these yard sales go every weekend including the weekdays,no one really knows when - they are or even care.The city charter should never have been changed,this city looks more run down as = a result of it ttt 43 Crime rates lower 2113120151.0:49 PM to 44 Human-scaled environment conducive to cafe culture I 2/13/2015 9:31 PM 00 45 No homels begging at every freeway exit 2/13/2015 7:48 PM L, and fewer tax benefit recipients 2/13/2015 7.13 PM > 1��m,,e;.Ipayer. — v iSave money by Focusing on ONE common language,English.I was disgusted to see the first question showing 2/13/2015 7:07 PM Spanish first on the list,which is not even alphabetic.I'm of Berman descent.I could demand the opportunity to `+- O answer this questionalre In the language of my ancestors,who,however,were wise enough to learn the common J( language of the land they migrated tool r._ 48 Increased cit y services.Return police staffing to.previous yrs revise Charter section 187 2/13/2015 4:56 PM e 49 nogangs 2/13/2015 4:29 PM m 50 get ride of the transiants 211312.015 3:39 PM m 51 I More things to do in San Bernardino for children and adults 2/13/2015 3:13 PM 52 I Fix the streets and remove grafitti 2/1312015 3:08 PM 53 No-kill animal shelter 211312015 3:03 PM E 54 Increased interest by employees on the cityas a whale instead of self interests-paid for by the largely poverty 2/13/2015 2:59 PM CU stricken people of the City 55 { No-kill animal shelter ! 2/13/2015 2:59 PM 56 I Stop promoting low income housing 2/1312015 2:49 PM 57 Higher home values 2113/2015 2:11 PM 58 I No more reverse discrimination-Asa teacher,I have to overly sensitive to others,while they do not tome 2113/2015 2:06 PM j because I am of'the"supposed"privileged race:"white".When you work in a fide one school,any other race calls I racism,i lose my job,if my parents are racist;it is tolerated and not dealt with. i 59 BetterShops and More Things to Do 2/13/2015 2:05 PM 60 removal of the ingh density housing between baseline and highland.those areas are a blight 211 3/201 5 1.57 PM NO TAGGING anywhere or Prostitution on Baseline 2/13120151:41 PM 2 ! Cleanup Downtown,the west side,and the area around San Gorgonio High School, 2113120151:38 PM Packet Pg. 1410 6.A.a 83 I Get rid of that stupid new bus system that ruined our downtown,is used by very few people,and is a brutal 2/1312015 1:31 PM I reminder of the government funded poverty,in this town. Change the city charter. 211312016 1:31 PM 65; Under improved educational opportunities,more vocational hands/on experience Le A/C training,metal shop, 2/13/2015 1:30 PM construction;I.e, 68 Less social welfare,section 8.ect and more john 2/13/2015 121 PM 67 Less Murders ( 211$120151:1g PM 68 street-renovations 2113t20151.14PM_ 69 crime;safety issues,the city is a sbithole 2/13/20151:11 PM 79 f T M Community Center and More Money to Our Schools � 2/13/20151.1 p PM 71 i stores that willing to locate here 2/13/20151:08 PM 72 Honesty and integrity in city government 211312015 1:011 PM 73 I Hateto say it but..more like downtown and old Redlands(small shops in areas where you can stroll,revitalized 211 3/201 5 1:00 PM neighborhoods that show pride of residence). N 74 No organized crime and drug gangs with unlicensed cars and tinted windows driving dangerously through our ! 2/12/2015 6:22 PM O neighborhoods,AND less air pollutionT Better jobs won't replace the money made from drugs.We need tough Q cops who are willing to battle gangs.Why aren't these even options? 0 O C 75 More or better shopping centers such as Victoria Gardens or Citrus Plaza 2/12120152 21 PM tp n. 76 clean up the crime and prostitution. l 2/12/201512:04 AM I — I to 77 consistent 2/111201511:34 AM M 78 decrease the number of criminals,'lowincome people,people on public aid,people without education or job skills, 2111/20111:01 PM a moratorium on low income housing and non-profits,liquor stores,99c stores,tattoo parlors,pawnshops,etc, y etc.instead get wel educated and/or skilled middle Income residents form other cities,focus on getting quality > O middle income housing and businesses,make San Bernardino the safest city in california and we will prosper! I U i w 79 i housing J 2/9/2015 9:45 AM C 80 just need to feel safe and i dont in the city at night. 2/5/2015 7:50 AM d O L L d m E U a Packet Pg. 1411 From the list below, what are the greatest assets that the city has that we can build upon to revitalize our city? Please check the all of the ones that you believe are current strengths. Answered:306 Skipped:153 Transportation Law Enforcement Public Safety d N Housing O Opportunities Q v— O Employment C Opportunities ca C. Educational Opportunities pp 00 Vibrant �+ Culture and... �- > O V 0 Parks and d Recreation O C t0 Community a Spirit and... O C E Our Youth ■� _ L d m Unique C Business... R r C Our Environment ® d t V 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% w Q AnswerChoices Responses Transportation 39.87% 122 Law Enforcement 25.82% 79 Public Safety 18.95% 58 Housing Opportunities 23.53% 72 Employment Opportunities 15.36% 47 Educational Opportunities 46.73% 143 Packet Pg. 1412 6.A.a 28,43% 87 Vibrant Culture and Diversity Parks and Recreation 22.88% 70 Community Spirit and Pride 14.71% 45 28.76% 88 Our Youth 16.01% 49 Unique Business Sectors 33.33% 102 Our Environment Total Respondents:306 C d E to 7 'a Q v— O N G. M L0 CD M d O U O C R a O c L tQ L d m t♦7 i+ E V i+ a Packet Pg. 1413 Please rate the following service areas based on your level of satisfaction on a scale of 1-10, with 10 being completely satisfied and 1 being very dissatisfied. Please check NIA if the item does not apply to you. Answered:328 Skipped:131 Transportation Homelessness NIP C N Public Safety ..a Q Fire w- O C City ■■ d Administration M LO 00 Utilities c7 Parks and d Recreation O V fY Planning and O Permits. C 07 a 0 City Council .a O 0 1 2 3 4 5 6 7 8 9 10 M C R N 1 2 3 4 5 6 7 8 9 10 NIA Total Weighted Average d E Transportation 6.27% 2.82% 5.64% 5.33% 14.73% 5.33% 7.84% 14.73% 8.15% 7.21% 21.94% 20 9 18 17 47 17 25 47 26 23 70 319 7.15 i6 Homelessness 55.11% 14.55% 8.05% 4.64% 4.64% 1.55% 0.62% 1.24% 0.62% 0.93% 8.05% Q 178 47 26 15 15 5 2 4 2 3 26 323 2.77 Public Safety 20.43% 16.72% 15.79% 8.67% 11,76% 7.74% 6.81% 5.88% 2.79% 2.17% 1.24% 66 54 51 28 38 25 22 19 9 7 4 323 3.96 Fire 4.09% 3.46% 5.97% 5.97% 14.78% 8.49% 11.32% 17.61% 10.06% 11.01% 7.23% 13 '1 19 19 E7 27 36 56 32 35 23 318 6.78 City 22.29% 12.69% 13.62% 10.53% 15.17% 7.43% 6.50% 4.02% 0.93% 0.62% 6.19% Administration 72 41 44 34 49 24 21 13 3 2 20 323 4.11 Utilities 9.32% 4.66% 9.63% 6.52% 21.74% 9.94% 7.14% 14.60% 6.83% 4.35% 5.28% 30 15 31 21 70 32 23 47 22 14 17 322 5.72 Parks and 18.27% 10.84% 13.00% 12.69% 19.81% 5.57% 6.81% 5.57% 1.55% 0.31% 5.57% Recreation 59 35 42 41 64 18 22 18 5 1 18 323 4,33 Packet;Pg 1`414 Planning and 14.29% 7.45% 7.76% 1 6.83% 15.53% 5.90% 3.11% 3.73% 0.93% 0,31% 34,16% Permits 46 24 25 22 50 19 10 12 i 3 1 110 1 322 6,32 City Council 24,30% 9,97% 112A6%0 10.28% 13.71% 6.86% 5.30% 3.43% 1 0.62% 0.93% 12.15% 78 1 32 40 33 44 22 17 11 i 2 3 39 321 4-45 0 a. LO w 0 U (D 0 C Rf 0- 0 (D CO U) E Packet Pg. 1415 Please rank these characteristics in order, with 1 being the characteristic you most want San Bernardino to have in the future. Ansv-rcred:323 5kipped:136 City administrate:.. Vibrant and robust city... A city that has a uni que nr " d Green and N ecologically... U) 'a A city that is that run... 0 C A safe and IZ healthy... " Cl) W) 00 A City in M which all of... L A place where ° p I can raise y Q.' 0 1 2 3 4 5 6 7 8 9 10 = n. 0 1 2 3 4 5 6 7 8 Total Score 'O City administration that is friendly and 6.71% 9.89% 11.66% 16.61% 17.31% 15.19% 11.66% 10.95% L welcoming to new and existing 19 28 33 47 49 43 33 31 283 4.25 m businesses. _ Vibrant and robust city center with a 10.07% 13.19% 15.63% 17.01% 16.67% 13.89% 7.99% 5.56% to variety of stores,restaurants and activities. 29 38 45 49 48 40 23 16 288 4,82 tv A city that has a unique culture and 3.47% 4.17% 7.99% 8.33% 9.38% 15.28% 28.82% 22,57% s identity. 10 12 23 24 27 44 83 65 288 310 0 a.+ Green and ecologically friendly city. 1.37% 4.12% 4.47% 11.68% 12.37% 14.78% 23.02% 28.18% Q 4 12 13 34 36 43 67 82 291 2.93 A city that is that run efficiently and that 19.58% 17.13% 19.93% 14.34% 16.08% 6.64% 5.24% 1.05% makes decisions based on the best 5G 49 57 41 46 19 15 3 286 5.64 interests of its citizens and is future. A safe and healthy community. 39.58% 22.22% 14.24% 9.72% 5.21% 4.17% 1.74% 3.13% 114 64 41 28 15 12 5 9 288 6.46 A city in which all of its citizens work 3.46% 9.69% 16.96% 14.19% 14.88% 19.38% 13.49% 7.96% together to take care of each other and the 10 28 49 41 43 56 39 23 289 4,21 community. A place where 1 can raise my children and 22.12% 20.83% 10.58% 8.65% 9.62% 8.01% 3.85% 16.35% where they want to stay to raise their 69 65 33 27 30 25 12 51 312 5.16 children. Packet Pg. 1416 07 What is the one thing that you are most proud about being a citizen of the city of San Bernardino? Answeredi257 Skipped:202 # Responses Date 1 How close the city`is to Citles with beautiful recreation facilities 3/2/2015 5:07 PM 2 Affordability 3/2/20'!58:57 AM 3 The city is centrally located to the mountains,beaches and deserts,Everything is within an hour drive. 3/1/2016 4:45 AM 4 tt's made me high vigilance of danger and personal safety. 2/281201512:06 PM 5 I've lived here all my life.I remember when we were an All American City,This is the home of the birth of fast food 2/2712015 11:16 AM C restaurants and Santa Fe's 3751,and were on Route 66.We're also located in a beautiful area of Southern O E California, y O 6 A police dept:that is working under reduced manpower and continues to perform exceptionally well, 2/27/2015 6:27 AM Q 7 Its diversity 2127/2015 4:21 AM 8 We have a beaufiful view of the mountains. 2/26/20157:22 PM M 0. 9 beautiful skies to stargaze, 2/26/2015 4:37 PM Cl) 10 sorry not one l wish I HAD THE RESOURSES TO MOVE OUT 2126/2015 4:26 PM u7 00 M 11 I'm proud that San Bernardino is centrally located to so many awesome places(desert,mountains,etc,)and we 212612015 12:42 PM have a great history to build on, y The history 212512015 11:45 PM O U CD 13 I'm proud of Metrolink and San Bernardino's role in creating the system.1 think we need to use Metrolink to our 2/25/20151;20 PM advantage to get people to travel to our city for entertainment We need to better connect Metrolink to Hospitality O C Lane,and SBx is a good start:We also need to encourage business development near the station that is more upscale that what we have there now,like a really unique restaurant or shopping experience. D- O C 14 1 am most proud that I am one among a minority that lives in San Bernardino,has a full-time job,pays all my fees 2125/201512:55 PM p L and taxes on time,and is not a criminal. L 15 0 212512015 5:21 AM a) 16 0 2/24/2015 8:25 PM CU U) 17 1 honestly can't think of anything to be proud of, 21231201511:20 PM C d 18 1 like being back in an area that has sidewalks and streetlights.There are activities here.We have a library.We 2/2312015 8:51 PM E have our dual theater area back with Regal Cinema. V cs 19 Home to Route 66 and McDonald's 2/23/2015 6:28 PM Q 20 The Orange Show 2123/2015 6:07 PM 21 The ability to grow as a city.This is my hometown.I wentto school here my children were raised here.I hurts 2/23/2015 1:02 PM everytime I look around and see apts going up and Families unsafe,i have a hard time remembering how it use to be. 22 all of the above are vital to the success of San Bernardinds future.My family Is is San Bernardino based and has 2123/2015 7:42 AM been for years.My mother and father were both Berdoo Cardinals and met in San Bernardino. 23 Our past history and the hope that we can return to a thriving community again in the near future. 2/23/2015 7:29 AM 24 There are some hard working people that want to make San Bernardino a safe place to live and raise a family. 2123/2015 4:15 AM The past greatness and future potential of my city that has seemingly be left to rot with the pot shops,99 cent 2/22/2015 7:25 PM stores,vagrancy,and panhandling while every other surrounding city has superior housing,community,and business development. Packet Pg. 1417 homelessness,crime,prostitution,corrupt safety, 26 (am.not proud to live in SB.M family worries about my safety and my job in a city where poverty, I 2121/2015 6:29 PM ion are nearly the highest in the entire nation. CSUSB 2/21120151:20 PM 8 the opportunities available to students in our district 2/21/2015 10:56 AM 29 There fs very little to be proud of.If I had to choose one thing,it would be CSUSB. i 2/21/2015 9 02AIA 30 I'm not proud at all. 2/21/201512:42 AM 31 j That we were once a productive city. 2/20/2015 10:03 PM 32 1 remember what!twas like in the past. 2/20/2015 9:50 PM 33 Hard to think of one.I live here because I could not afford any otherplace.I wish my kids"are exposed to a better 2/2012015 8:25 PM educational system and better surroundings. 34 I'm new to the city.I have noticed the strong sense of community here and do enjoy that 2/20/2015 719 PM 35 Honestly nothing I'm about to move out of this horrible place 2/20/2015 4:58 PM 36 Can't think of anything the decline is so devastating over the past 20 years. 2/20/2015 4-39 PM N 37 That I am a teacher in the SBCUSD District that works HARD to provide and education so our youth can become ( 2/20/2015 4:32 PM N sucessful! 3 38 1 was born here 60 years ago and recently retired from 28 years of service with the San Bernardino County 2/20/2015 4:27 PM Sheriffs department.I have lived in the city of San Bernardino most of my life and at this time in our cities history 1 O am ashamed at what the city has become.We have become a community that cannot support Its needs because our taxpaying middle class has fled.In the last year t have faced off criminals in my driveway at 3ar Q apprehended criminals who were burglarizing my neighbors home and defended myself from attack by a loose pit bull dog at 4:30 am while trying to load my car for a trip to see a friend(who has already fled).Stop the LO panhandling!Do not confuse panhandling as a homeless problem,it is NOT!After working in the local jails for 28 M years I can personally attest to the fact that most of these panhandlers are not homeless,theyare scamming people.Prop 47 has added to an already bad situation but I'll stop right here.The likelihood that my family will stay here for the long haul is pretty slim at this time. > O The pride that is evident. — 2/20/2015 3:24 PM 40 its location... 2/2012015 2:26 PM c 41 Are you kidding me???We got rid of the Perinmanere i 2120120151:21 PM p. 42 I grew up here i own my home here,fw _ _..,_—_ '.__l_ _ _�._.___ — -_ .. — — _ _— p work here,I grew up here&I am giving back to my community. 2/20/201511:53 AM 43 History of a great city. 2119/2015 9:16 PM 44 Myhome 2119/2016 8:46 PM m P rp 2/19/20156:59 PM 45 Airport and Land around the ai ort. t�C t/7 46 I'm most proud of the local businesses that have stayed with us through thick and thin.SB is a hard place to start ; 2/19/2015 5:11 PM a business and keep it running sucessfully.We should make it easier for small business owners. d E 47 ' public libraries 2/19/2015 5:06 PM U 48 The affordability of the housing stock, 2/19/2015 3:27 PM Q 49 Wow,tough one..At this point very little to be proud of... 2/1912015 3:23 PM i 50 E At this point,I cannot identify a positive characteristic of the city that I would be able to communicate to others. 2/19/2015 2:47 PM 51 the gateway to calif 2/19/2015 2:24 PM _ __l _ __. _ - _ 52 Nothing.I used to have instrumental,a prig with navel a great cftie geographic creating MU ._.....m - ._K., _ on(close to cities,mountains,deserts, 2/19/201512:38 PM etrolink.We had a nice,homeyqual!ty. Now all I see is graffiti,trash,and empty buildings everywhere. 53 Just the fact I live close to work and my children's Charter school.I only moved to San Bernardino because of the 2/19/2015 11:35 AM school my children attend,SOAR Charter Academy. ......_..... Diversity I 2/1 91201 5 11:28 AM Wlthall tliechanges that have in-the r City,I am still here,with hopes of brighterfuture.This wasonce 2/19/201510:12 AM such a beautiful,safe place to live. Packet Pg. 1418 56 I am proud of what the city's diversity. 2/19/2015 10:10 AM 7 It's HISTORY 2119/2015 8:47 AM It has potential being one of the bigger cities in the Inland Empire 2/18/2015 2:48 PM 59 I NIA 2/1812015 2:12 PM 60, Caf State,close to the mountains easy access to other Cities and my family, 1 2/181201512:39 PM 6? The residents who have lived here for years(myself for 04 years)don't give upon the City and keep believing In i 211 81201 5 11:35 AM its potential. 62 1 used to be proud to live in San Bernardino.Now,I feel one of the biggest mistakes I made in my life was buying 2/18/2015 10:31 AM a home here.That mistake will be a regret I have for the rest of my life because I don't believe that my city,my council representatives,and especially my police force cares anything about me except that I keep paying lots of taxes and fees on every service I-get.But,'when I need something,it's too bad for me. 63' ) There is a great system for students to be educated(Kinder though college)in the city of San Bernardino 2/181201510:29 AM 64 Born here and have lived here all of my adult life, 2/1 8/201 5 9:44AM 65 Cal State Universfty – — �� � �--- -- 2/18/20156:57AM � 66 } We are a city looking to grow and develop into a place where we want to live and share with each other. 2/17/2015 9;55 PM to 67 Some ofmy elementary school teachers atkendall elementary from 95-2000,avhs W8,csusb 08-12. 211712015 9:08 PM �( 68 ' N/a 2/17/2015 g:06 PM C 69 The strong hlstodcal tte to the railroad and orchards 211 71201 5 8;47 PM a 70 i am proud of our police department.They work hard to keep our community and streets safe from gangs and I 2/17/2015 7:42 PM M LO drug dealers 00 71 There is a greatvIewofthe mountains;values of the homes are reasonable. 2/17/2015 6:50 PM 2 1 am not proud about being a citizen of'SB.Too many times the citizens say they are from surrounding cities, 2/17/2015 5:34 PM a) such as,Redlands,Riverside,and Highland(never Rialto).I live where I live and I never claim another city,It is O embarrasing when you say SB and people make a face or make negative comments.We have a horrible IX reputation and an ugly city.If I know about events and voluteering opportunities in my Perris Hills area,I always O go,Revitilize downtown but how about helping us revitilize our homes and neighborhoods so our city can be c beautiful? to EL 73 It's trying to improve 2/1712016 5:11 PM C 74 It's history(Berdoo)....It is home;I was born and raised here and went to Urb!ta,Richardson,San Gorgonio, 2/17/2015 3:30 PM SBVC,and CSUSB.Unfortunately i couldn't take the downturn any longer and moved out of the city 4 years ago L and continue to help the community by working for SBCUSD.Also,the proximity to mountains,desert,and I beaches as well as the Route 66 event..that no longer takes place in SB...are things to be proud of! m 75 1 was raised went to school and now work as a Psychologist in the san Bernardino school district 211 71201 5 3:28 PM ) 76 We're in the middle of everything.LA is 1 hr away.The mountains and lakes are about 45 minutes away.Las 2117/2015 2:56 PM d Vegas is only 3 hrs aways,OCis 1 hour,San Diego is 2 hours.Most of the adjacent neighboring cities have safe places we can visit What we need to do is what Fontana is doing.We need to invest our money in our parks and V recreation system.Our parks needs to generate revenue by centralizing all of the kids clubs and sports teams that are taking place in our city.The same way that Fontana is taking care of their youth programs.If we create safe Q parks and fun places for our kids to play at,1 feel that there will be more buy in with productive people that are will to stay within the city.if we do not cater to our families,San Bernardino will keep attracting citizens that are non desirable and non productive. _ .. ....... _..... 77 no comment.., 1 2/17/2015 2:32 PM 78 i cannot think of a thing. 2117/2015 2:02 PM That we have a 4 year University here.CSUSB 2117/20151:81 PM 80 Beautiful trees and mountains 211 7/201 5 1:03 PM 81 Greatteachers in the SBCUSD school system/ 1 21171201512:55 PM 0 That it has a great history(Santa Fe and the railroad,Norton Air Force base,Citrus Industry,Route 66,Native 211 712 01 5 12:38 PM history,The Orange Show/Swing Auditorium).I want it to be great again on par with other great Southern I California cities.Leaders need to have have vision and care about Berdoo.. uu / Amongst all the negative and bad things that are said,and all the mis management I still have hope,Barely. � e11712015 12:37 pw JQ4 My family immediate and extended family being born and raised here.Alsothe landscape ofvalleys and 211712015 12:24 PM 5 NONE 2/1712015 12:04 PM San Bernardino gave the World McdonaldsHamburgers and HefIs Angeles! 2/17/2015 11:28 AM 87 It's History,I hope future generations can say the same. 2/17/2015 10:40 AM 88 The city provides opportunities for families to get back on their feet with low cost of housing and a variety ofjob 211712015 10:38 AM opportunities.The one thing that breaks my heart about the city is the high crime rate and amount of trash and graffiti that surrounds the city. 89 Location.Mountains,beautiful views and Weather.San Bernardino City Schools. 2/11/2015 10:32 AM 90 It's rich history.1 2/1712015 10:23 AM Its historical background, 2/17/2015 10:12 AM 92 Our optimism.We do not turn children away in needl 2117/2015 9:50 AM 93 1 have lived here all my life.Raised my kids here. 211,7/2015 9:40 AM settlement ~,' : ~,~_ _ .,Our College -Valley College and Cal State 96 The history 2/17/2015 9:26 AM 97 Cal State San Bernardino is a wonderful university with rompeetive programs and educational opportunities. 2117/2015 9:00 AM 98 It's rich history in the past but not recent 20 or 30 years 2/1712015 8:56 AM LO School District 2/1712015 15:43 AM 100 Th.tthl.city has great potential.If only its residents were not so complacent. 2/17/2015 8:35 AM a) My child's school and teacher is great. 2117/20157:30AM 102 I'm close to work.It is a city that is rich in history. 2/16/2015 8-05 PM 103 Nothing at the moment Waiting for the change that will make me stay. 2/1612015 7:46 PM � m* The housing Is affordable. � �0oo�Vpw � 105 | lam most proud mthe fact that most people are very friendly.The weather is excellent.The educational 2/16/2015 5:50 PM nn portunm*xmr amwnd antanu*ccnssime ' ___ 106 [ We sit m the base m the mountains. 2/16/2015 5:17 pw CU 107 recycle for trash 2/16m015 3114pw m - ' -------------------------'--~-- -- '--~---'----- -T - ---- /na ' /can always count on the graffig patrol to take vw��nmWmmo*mo�,�|mp�wvw�� | ona�n�o�rpw | - — ' - -' - -- --- -- ----'----�-' -- -- 109 � nothing right now . 2/16/205 2m4 na ,m � The people who live here and uv care about their neighborhoods and schools. __ { ommao5 12:18 PM ill San Bernardino is anpeat place muv and grow. 2116/2015 11 A0 AM / - -- -'-- -------- -- - - - ---- - -------------- --'----' r - - --- - 112 »ch^»w i 2/16m01511:14mw /,o � I am most proud that the majority of people I know who live in San Bernardino are kind and hard working and will 2/1612015 11:0*xw � work together to help out others around them when things get tough as they have over the last 25 years. '-� --- l-----' ' '---- ---'- -----------^'-------------------- --- 114 . This is cheap place to live, 115 / /'m proud that San Bernardino is inubeautiful area mCalifornia. 211o1201n10:mAM 116 ' The positive impact that the teachers m the SBCUSuhave on the lives mthe students who|ivembelow stands rd | 2116/2015 9:1*^w crime ridden neighborhoods.|live mthis community and/nv not understand why ou much money was put into v | | bus that very few people ride vnp daily»au/o wxnTsFu�minmoney vm`umnmm�enput/monm,imnooa*, ( i � 0 | neighborhoods, 6.A.a 117 Historically this:was a distinguish city!Many famous people and innovative ideas grew out of San Bernardino.1 2116/2015 9:08 AM believe most of our citizens don't realize the rich heritage of San Bernardino.Not that we should only focus on 0 our past successes,but that we have the potential to revise that innovative and progressive spirit again! C8 1 can tell my students that 1 grew up in San Bernardino but it definitely is not the same city. I 2/16/2015 8:30AM t 11 I am most proud of being born And raised here.I had an amazing childhood and i expect the same for the 211612015 7,56 AM generations that follow. 120 t San Bernardino has some positive things going for it I enjoy attending the plays and symphonies at the California i 2116/201 5 8:19AM theatre,i enjoy that I live by the hills and that I can hike out my backdoor anytime I want to.Both my children are 1 involved in youth orchestra programs(Symphonie Jeunesse and Simphonla Mexicana)--which fantastic youth arts opportunities not available in any surrounding community.The School Superintendent has created some unprecedented opportunities for school aged youth to attend college-An opportunity many would not otherwise have.Unfortunately,the city reputation takes a beating by outsiders for all the items that make the news.All the positive aspects of the city are not well known or celebrated,and that is a shame. 121 i The geographical location of the city and the natural beauty that surrounds it. 2/15/2015 11:52 PM 122 The school district seems to value and encourage our youth to seek positive choices and follow their educational 211 51201 5 5:23 PM path to a bright futures 123 We have youth that Is brilliant and unreached. 2/15/2015 1:03 PM 124 There are neighbors t can count on. 211512015 10;44 AM _.___ ....... 125 The location:we are surrounded by the most beautiful mountains and have the best weather..It's a g4iet 2/1 5/2015 1 0.13 AM b- O t community,but it's easy to get to other places within an 30-60 minutes. 126' Very little traffic.Easy16 get across town.Lave the new 215 between the 10 and 210' l 2/15/2015 8.17 AM 0. 127 I The beauty of the mountains,the possibility of capitalizing on the natural beauty of the city. 1 2/14/2015 8:22 PM Cl) to 128 This city has a lot of history behind it.It"s a beautiful city and could thrive If ft made good choices. 2/14/2015 5:52 PM M 129 1 remember What San Bernardino was back in the day,..,.. 211 4/201 5 4:40 PM m 0 Currently our streets area mess,downtown is a mess,trash is everywhere,i am sorry to say I am not currently 2/14/2015 2:13 PM O proud of my city,and I have lived here for the past 43 years. tY 4- 131 The diversity.The history.The location 2!14/20151:28 PM O 132 1 am most proud of CSUSB and SBHS. 2/14/20151:22 PM tl O 133 i Proximity to mountains,deserts,ocean and So Cal attractions.Unusual history as a"wild west"town.Geothermal y 2/14/201511:13 AM resources. cu 134 ? $O many marijuana events,420 friendly people,2%of population with medical cards&growing. 2/14/201511:04 AM 135 1 I'm proud about being a citizen of San Bernardino in that,even though I and others like me feet completely beat 2114/201510:31 AM ca down and discouraged about how San Bernardino is compared to how it used to be,we continue to live here and r/1 have hope for its future.We hope against all hope that something will change and make San Bernardino a place _ to be proud of living in again,I'm getting older and it may not happen in my lifetime,but there are people like me d I who know the city's potential and stay here even though they could easily move somewhere much nicer. E 136 1 hate the city and cannot wait for the day t can move.!have lived here 3 years,in the same house.The schools 2/141201 5 1 0:02 AM cvC are inaffective,both charter and public,There are no choices to have your child bussed to a better school district, Q Every single school is title 1??The kids are exposed to drugs and alcohol way too soon.There is sex trafficking, I see prostitution every night.Behind buildings such as public library the smell of urine is overwhelming. Homeless leave trash and blankets all the city.The amount of homeless people is probably less than the amount of unoccupied houses.At least build more shelters or something...makes them more accessible.And there needs to be a way where one can get help with housing BEFORE they are actually homeless(that would help).The moutains are pretty the rent is affordable. 137 Beautiful mountains as our backdrop...Sad that I can't say anything else. 2214/20159:16 AM 138 Can'tcome up with anything right now.I am embarrassed to say that I live here. 2/14/2015 9:05 AM 139 I there is not one:thing.It is embarrassing to say you are from san Bernardino. 2/1412015 8:57 AM' 0 The school that my children attend is one of the best schools In the nation 2/14/2015 8:57AM 1 �! Nothing 2/14120156:11 AM 142 Looking at the mountains. PM r t 143 The beauty. 1 2/13/204610:51 PM ASPAIL44 CSUSB 1 2/13/2015 9:33 PM Our schools 2/13/2015 9:08 PM 146 It is a short drive to work. � � 2/1312015 7:53 PM 147 1 am NOT Proud about being a citizen of San Bernardino, 2/13/2015 7:37 PM 148 The location 211312015 7:29 PM 149 Back in the Seventies,Sunset Magazine'rated San Bernardino as the best place to live west of the Rockies.Yd: 2113/2015 7:23 PM like to see San Bernardino returned back to that high standard.It can be done,but it will take a lot of hard,no- j nonsensework. 1 150 I The city has many people willing to work and Improve their economic situations. 2/13/2015 7:20 PM 151 Actually,I can't think of anything. 1 2113/2015 7:17 PM 152 ` Our location Is in close proximity to beaches,mountains,and parks.We have a good history of significant I 2/13/2015 7:05 PM ++ r milestones: � 153 i Nothing at present but hopefully something once improvements begin to take place. 211 3/201 5 6:10 PM E 154 i 1 have lived and worked here all my life,Most proud?All American City in the 1970s. 211312015 5:47 PM 2 155 I Nothing; 211 3/201 5 5:32 PM O 156 1 live in a very nice,peaceful,quaint Verdemont Hgts 211312015 4;59 PM 157 ( ?7???7 2/13/20154:35 PM D" 158 I'm proud of this city's history, l 2/13/2015 4:23 PM LO 159 Surviving in the city 2/1312015 3:53 PM . . ._ >, *60 i the weather � 2/13/2015 3:44 PM Cal State San Bernardino f 2113/2015 3:36 PM U N 162 I There are so many good people who Ilve in SB. 2/13/2015 3:35 PM "- _ O 163 1 am proud of many of the young people living in our city. 211 3/2 01 5 3:28 PM ........._.. _. -- . 164 ' I'm not 2113/2015 3:17 PM = 165 Nothing..They want everything for free or they are retired hard working people that can't move because the value 2/1312015 3:17 PM L of there house has demenished 166 Location/schools 2/1312015 3:16 PM 00 167 That I have lived here for my entire life(57 years)and know what the city can be and believe that it will be good 2/13/2015 3;14 PM N again.There is potential.I am proud to work and live in San Bernardino,inspite of the negativity and the decline it +- C has taken. y 168 our Schools 1 2/13/2015 3:13 PM v tts 169 1 don't live in San Bernardino anymore.I grew-up there,but am said to say that it started to go down hill when the 211 3/201 5 3:12 PM Q base left.Its dirty,not safe,and sad to see how it has gone down-hill especially the last 12-14 years. 170 San Bernardino City schools have great teachers that are always looking for ways to improve our youth and our 211312015 3:12 PM communities. 171 ( THAT IT ONCE WAS A CITY TO BE PROUD OF....... 2/13/2015 3:11 PM 172 Nothing at all I'm ashamed of our third-world city-boarded up businesses,dead downtown,a hellaclous animal 2/13/2015 3:08 PM sheltegMayor Davis'comment at the Council meeting pushed the city further into ignominiousness,grafitti everywhere,huge amounts of property crimes,a city full of renters and not homeowners,the known corrupt airport chief,too many$.99 stores&check advance places 173 That I grew up here, 2/13120153:07 PM Being able to find cool restaurants for me and my friends to eat at near Hospitality Lane i 2/13/2Q15 2:56 PM 5 I'm still alive and trying to move the city forward 2113/2015 2:52 PM _.._. ...,_. __. 176 1 am not proud of being a citizen of"San Bernardghetto." i 2/13/2015 2:46 PM Packet Pg. 1422 177 The history of the city and the beautiful mountain backdrop 211 31201 5 2:45 PM 78 community i 2/13/2015 2:41 PM 9 none of the above,this poor town looks like a ghost town. 2/13/2015 2:40 PM 180> Family ties dating back to 1800: 2/1 31201 5 237 PM 181 i currently am not proud to tell people that I am afflliated.with the city of San Bernardino. 2/1312015 2:31 PM 182 There are good colleges within easy driving distance I 2/13/2015 2:27 PM 183 The diversity of the people and how tolerant most of them are of people's differences: 2/13/2015 2:21 PM 184 I 1 can honestly say nothing.I'm embarrassed of this city,;The violence the homeless population the run down 2/13/2015 2:19 PM looking areas.Its all out of control 185 ( We are not done,nor out.We are VERY misinformed and caudle our citizens too much;but this survey is a start. 2/13/2015 2:12 PM So,I am proud of that too. .186 It sounds terrible,but honestly, onestly,I am,proud of the fact that I got out of San Bernardino:Growing up here(or when 2/13/2015 2:07 PM people hear you are from here),they do not expect very much from you,I am proud that was able to go to college(in Riverside)and get a degree to become a teacher.I now teach for the SBCUSD school district,which I a) J love—because i feel like a great example for my students of someone who got beyond the"San Bernardino" N reputation,and I hope to inspire them to also reach beyond expectations they(or others)may have for 3 themselves.I also would like to credit my own teachers and the AVID program for helping me get an education, which now allows me to give back to this city. Q O 187 i am most proud of my disdain of the bus system on E street i tell all my friend$how bad it Is,how much it has ( 2/13/2015 2:04 PM II devastated business along that street.Further the bus system on hospitality has caused much more pollution, d congestion dangerous situation for pedestrians.yes,im proud to point out these failures in govt administration. , 188- The leadership at SBCUSD,Dale Marsden should be cloned. 2113/2015 2;03 PM ul 189 9 �havin CSUSB here: _ 1 2113/2045 1:58 PM L' AOMWO None.This city is very run down.Cities in surrounding areas are revitalizing.There's no pride in this city,other 2/13/20151:57 PM y than maybe those of social status.San Bernardino needs a complete makeover,or it will become a"Detroit,or v has it already surpassed Detroit? a) 191 1 am proud that our city has a rich history that we we can build on.I've grown up in this city,so I want to see it I 211 31201 5 1:52 PM O I g rise from the ashes and flourish again. ro 192 the positive changes that our eduction system is going through forthe benefit of our children. I 2/13/2015 1:50 PM O C 193 _ Opportunities to make a difference 2/13/201.51:49 PM 194 My siblings and I are raising our children here.Ifs beautiful 2113/20151:46 PM 195 nothing,I do not tell people i live here i 2/13/20151:42 PM 196 1 am proud of its proximity to the Mountains,Beaches and LA i 2/13120151:41 PM 197 j Our location.We are surrounded by beautiful mountains,however,an ugly city. 2/13/20151:40 PM i 198 1 am a citizen of Highland,but I have worked in SB for over 30 years with youth.I am proud of our school and it's 2/13/2015 1:40 PM V cv community that supports our school � 199 The beauty of the mountains and the surrounding availability of shopping. 2/13/20151:40 PM 200 It once was a city to be proud of 211 3/201 5 1:39 PM 201 The beauty that surrounds ourvaily can be inspirational to the neighborhoods we live in. 2/13/2015 1:36 PM 202 ! Unfortunately I'm not proud of being a citizen of San Bernardino.If really pressed,I would note CSUSB, 2/13/20151:36 PM 203 My own house and yard.Almost everything beyond my neighborhood looks dirty,old,rundown and ugly. 2/13120151:36 PM 204 I 1 was born and raised here.This was once a beautiful and thriving city./would like to have this restored.I'm so 2/1 31201 5 1:36 PM tired of seeing EBT everywhere. 05 I At this moment there is no comment to be made.Very disappointed that our city ranks high numbers for all the 2/13/2015 1:35 PM negative reasons, Packet Pg. 1423 6.A.a 206 1 The unbelievable scenery on any given day,of the mountains.its breath taking.I love it.The affordable housing 2/13/2015 1:35 PM is a big plus.All the new schools for public education.The new highways for transportation.The new city bus system,I was bom and raised here,I work here,and 1 have to say I am really tired of hearing all the negative media that is put out from news sources about san bernardino.I think the city and the county has so much natural beauty to offer from the deserts to the mountains;to the valley areas.The fantastic new highways running through san bemardino are amazing.All the new schools are fantastic.We need to feel safer in certain areas,and j homelessness Is an issue.I want San Bernardino to make a big come back.Its time to turn the negative views of this city around. 207� I am proud that we have dynamic students,committed community members and the potential for growth. 2/13/20151:$5 PM, 208 not too many things:cant take kids to a nice library,cant go to a movie theater that feels safe,tired of the same i 2/13/20151:30 PM restaurants on Hospitality(if there was ambiance in the surrounding area,would help)there are not very many parks,the ones we have are very unsafe,too many bus lanes downtown,Carousel Mall looks like an indoor swapmeet(lived here since it was called Central City Mall,when it was okay),there are lots of old buildings that j can no longer be used,I rather see a vacant field then an old useless building used to house drugs and street people,too many motels in the downtown area that are all used for the wrong reasons.all of these factors bring the wrong people to the trying to be right areas, 209 i The scenic area in the north part of town,the university,and the school district. ( 211 3/201 5 1:28 PM 210 Its not as bad as it used to be.School district has vision. 2/13120151:28 PM E 271 I I'm not proud our city at all.Poor decisions have lead the city into bankruptcy and unsafe neighborhoods have ) 2/13/20151:27 PM_ driven out the middle class. � Q 4- 2T2 How they are.finally tryingto beautify the city. 2/1 31201 5 1:27PM 0 213, I'm not homeless. 2/13/20151:27 PM ca a 214 THE WAY WORLD OUTREACH AND THE DiFRRENTS ITS MAKING IN ARi="CITYTHANK YO1J PASTER 2/13120151:26 PM M MARCO GARCIA u7 00 215, N/A 2/13/20151:26 PM 16 it's beautiful hills and scenery. 2113/20151:25 PM 0 i The people.Our residents are survivors,despite poor local government and the high crime rate. 2/13/2015 1:24 PM v t � 218 Innovative school district. 2/1312015 1:21 PM p 219 Our schools and educators 211,3/2015 1:21 PM a 220 I grew up in this City, 2/13/20151;20 PM C 221 I Students who overcome the numerous obstacles that San bemardino has and go on to 4 year universities 2113/20151:20 PM 222 There is the opportunity to grow and develop the community,It has good bones. 2/13120151:20 PM N m 223 My family has been in San Bernardion for over 90 years.!am most proud of my family roots in this town.I do not 2/1 31201 5 1:20 PM have much else to be proud of in this town. N 224 Affordability in housing prices. I 2113/20151:20 PM a> 225 Climate is temperate and for the most part sunny.WE have a great view of the mountains.New job opportunities 2/13/2015 1:19 PM are slowly improving.Loss of Norton AFB was the beginning of the spiral downward to this area,as far as jobs, U v new homes,career opportunities. Q 226 1 used to be very proud of being from San Bernardino but that pride is gone now.Our streets are so ugly,the work r 2/13/2015 1:18 PM opportunities are gone and the crime rate is so high.The only thing that binds me to this city is that my family is here.I would LOVE to get that Pride back. .. ....... ...... 227 i Its long history 2/1$/2015 1:18 PM 228 1 live and work in this city.I was born and raised here.There are still many great things about this city including a ! 2113120151:18 PM l sense of pride with San Bernardino natives,We have rich history in this city. 229 1 love the ideal location of our city in Southern California 211 3/201 5 1:17 PM 230 It's history 2113/2015 1:16 PM . .. ... 1 nothing. 2/1312015 1 16 PM How far 1 have come 2113/20151:15 PM 233 history of the area.climate 2113/20151:14PM 20 / 32 Packet Pg. 1424 234 1 am no longer a citizen of this town.I would be embarrassed if I had to say I lived here.I only work here now,and 2/13/20151:13 PM that's bad enough.The city has been run into the ground by city administrators,and is now a shithole full of gangs, crime,trashy houses,welfare,and human trash. 5 I'm proud to be one of the families that have continued to live and thrive in San Bernardino.I wish more familiies 2/13!2015 1:10 PM , would provideas positive role models for the others living in San Bernardino. 236 educationalc+pportunities 2/1312015 1:09 PM 237 Nothing,,I am actually embarrased to be a citizen of San Bernardino 2113/2015'1:08 PM 238 Honestly,I'm not proud.I used to be proud.Now I just wish I could afford to leave this city.The police don't care.1 2/13/2015 1:06 Plot see graffiti and rundown buildings everywhere Igo,I feel like the majority of residents are criminals and freeloaders with just a small group of honest,hardworking citizens having to carry everyone else: I ..._..... ..._ _ _........ - _ _.- _ I .. — 239 The history and central location of San Bernardino to mountains,desert,beach,and post-secondary education. 2113120157:04 PM 240, Our School District 2/13/201511:46 AM 241 We're home to the very first Mcdonald's 2/13/201511:09 AM 242 1 Was bom and raised here and have spent my 72 years in S.B.Sadly,atthis time I find nothing to be proud of. 2/1=015 9:29 AM 243 It's history and the pride long-time residents haGefor the community,. I 2/1W2015 9:29 AM N 244 The only thing good going for it is the new SBX bus line and the new movie theater.Otherwise,I'm embarrassed 2(12/2015 6:36 PM p of SB as the bad outweighs the good.We are a murder capital with weekly homicides and we need to stop Q organized crime by drug gangs running in our city,along with organized prostitution and sex trafficking.Nolte of I O the options listed In this survey address these adequatelyl A survey based on popular perception is incapable of understanding the systemic problems our city is experiencing.Things like"code enforcement"still does NOT 0- focus on the perpetrators organizing these crimes.Along with our poor air pollution,crime creates an unsafe environment that I do NOT want to raise children in!Why is our police force impotent to stop organized crime? Cl) We need an army practically!Our city council members are still grandstanding,perhaps because they don't get 1 M paid enough to actually do the work of understanding what the real problems are and how to actually fix those problems.I'm thankful for this survey though. i its history 2!1212015 2:25 PM O 46 ( our beautiful mountains and the city prime location to do all the g reat things In Southern California 2/1 21201 5 1 2:18 PM d iY 4. 247 ( There is not one thing to be proud of.l work here because the criminal element is the basis for my business and 1 oI 2/11/201511:40 AM live here because It Is less expensive and a lesser commute than living outside the city limits. 248 You tell met 2/10/2015 5:10 PM c .. .......__. 249 l from here,weather,opportunities to recreate outdoors all year 2/1 0/201 5 8:42 AM 250 1 have none 2/10/2015 6:59 AM m �251 Location and home price value �— 1 219120159;51 AM U) 252 History and rich diversity _ 219/20166:45 AM — 4-. C 253 1 wouldn't use the word proud,I'm just very happy to live in the north west side of the city.Verdemont Heights is 217/2015 8:23 AM the safest place in the city and needs to have more focus on business development and beautification of its t streets. v rC '254 1 Our History and California Theater 21612015 6:34 PM 255 My son graduated high school I 2/6120151;46 PM 256 1 can truly say we are doing our part by owning and maintaining our home,we work in the city and pay taxes and 2/5/2015 8:48 PM follow the law so that we aren't a burden on our already over burdened city. 257 We have a great bus system. 216/2015 7:55 AM 21 / 32 Packet Pg. 1425 To submit your survey, click below. Answered:323 Skipped:136 Submit 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% _ d E N 7 Answer Choices Responses Q w-. Submit 100.00% 323 = M Total 323 n. M tr1 Oo M L O U O �Q a 0 L M L m E M U 0 fC Q 22/32 En una escala de 1-10, con el 10 siendo el mas alto y el 1 siendo el mas bajo, indique la probabilidad de que usted recomiende a un amigo, pariente o colega a mudarse a la Ciudad de San Bernardino. AnEwered:5 Skipped:454 1 2 C 3 d E r.. N 4 'a 4- O 5 C N a. M 6 v7 00 M 7 > d O L) NOW S � O C _R 9 d O C L 10 C L a) CO 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% � N C 0 Answer Cholces Responses t v 1 20.00% 1 w a 2 0.00% 0 3 0.00% 0 4 20.00% 1 0.00% 0 5 6 0.00% 0 7 20.00% 1 8 40.00% 2 9 0.00% 0 23/32 Packet Pg. 1427 10 0.00% 0 tai g Y c� G i./ a 0 o. M tn 00 M d O U N O lC 0. O C L L co m cn Y E 0 U R r+ Y Q 24 / 32 Packet Pg. 1428' 0,10 Si no pudo clasificar la ultima pregunta Q como un 8 o mejor, 6que se tendria que Ilevar a Cabo pars que usted aumente la calificaci6n a un 8 o mejor? Arisv.r.rcd:3 Skipp(:d:45G Mejores oportunidade... Mas trabajos Trabajos bien pagados d Una comunidad E mas Segura N 7 .a Un centro mas Q aF. vibrante O C m Que mas n. personas... M LC) Le M, revitatizacl... Callas y >O vecindarios... Orgulio per su O C vecindario � a 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C E L L Answer Choices Responses m C R Mejores oportunidades educativas 0.00% 0 W w 67% 2 C Ws trabajos 66. 0) E 33.33% 1 Trabajos bien pagados v Una comunidad mas segura 66.67%, 2 Q Un centro mas vibrante 33.33% 1 Que mas personas par icipen an proyectos comunitarios 33.33% 1 33.33% 1 La revitalizaci6n de la comunidad Calles y vecindarios limpios 66.67% 2 Orgullo por su vecindario 0.00% 0 tal Respondents:3 # Otro(especifique) Date 25 / 32 Packet Pg. 1429 6.A.a 1 dar mas knpulsoa los pequenos negoclos paraque inviedan su tiempo y esfuerzo en is Ciudad 2/1 81201 5 9:26 AM .sr C N 'a Q O C M CL M to 00 Cl) 3w L O U N O C R IL 0 C L L W M��./� E U .r+ Y Q 26 / 32 Packet Pg. 1430 6.A.a If QI i De la lista a continuaci6n, &cuales son los mejores recursos que tiene la ciudad en los cuales podemos mejorar para revitalizar nuestra ciudad? Favor de marcar todo to que cree que son nuestras fortalezas actuates. Ansvaered:1 4F.ippvd:458 Transporte Fuerzas del orden I C d Segurldad p6bllda N 3 Oportunidades Q de vivienda p C Oportunidades p. de empleo M U7 Oportunidades M educativas d Cultura > vibrance y... V d 4- r— Parques y O recreaci6n = to 0. Orgullo y = espiritu... 7 L Nuestros �- d jovenes m C tC Sectores to empresariale... Nuestro = medioambiente 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q Answer Choices Responses 0.00% 0 Transporte Fuerzas del orden 0.00% 0 Seguridad publica 100.00% 1 Oportunidades de vivienda 0.00% 0 Oportunidades de empleo 100.00% 27/ 32 Packet Pg. 1431 Oportunidades eduaativas 100.00% 1 Culture vibrance y diversidad 100.00% 1 Parques y recreacion 0.00% ti Orgullo y espritu comuntarios 100.00% t Nuestrosjbvenes 100.00% 1 Sectores empresariaies singulares 100.00% 1 Nuestromedioambiente 0.00% 0 Total Respondents,I Y cd G i+ Q 4- O n. M LO CO M CD O V d O C tC 11 O C L L M� W ''m^ v! f+ E V Q 28 / 32 Packet Pg. 1432 012 Favor de clasificar los siguientes servicios basandose en su nivel de satisfaccion en una escala de 1-10, 10 que esta completamente satisfecho y 1 que esta muy insatisfecho. Favor de marcar NIA si el punto no le aplica a usted: Answered:l Skipped:d5s transporte "personas sin hogar" C d segun E dad + � '�� r t, w publics Q bomberos O C admi pmunicial c6 n. M LO servicios 00 M p6blicos parques y ® O recreacibn v d planificacion p y permisos � fC IL consejo 0 municipal L i13 0 1 2 3 4 5 6 7 8 9 10 d i70 C N 1 2 3 4 5 6 7 a 9 10 Total Weighted = Average transporte 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% V 0 0 1 0 0 0 0 0 0 0 1 3.00 r "personas sin 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Q hogar" 1 0 0 0 0 0 0 0 0 0 1 1.00 seguridad p6bllca 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0 0 0 0 0 0 0 0 0 1 1.00 bomberos 0.00% 0.00% 0.00°% 0.00% 0.00% 0.00% 0.00% D.00% 1DO.00% 0.00% 0 0 0 0 0 0 0 0 1 0 1 9.00 administraci6n 100.00% 0.00% 0.00% 0.00% O.OD% 0.00% 0.00% 0.00% 0.00% 0.00% municipal 1 0 0 0 0 0 0 0 0 0 1 1.00 servicios p6blicos 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0 0 1 0 0 0 0 0 0 0 1 3.00 parques y 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% recreaci6n 1 0 0 0 0 0 0 0 0 0 1 1.00 29 / 32 Packet Pg. 1433 planificacion y 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.0 % 0.00% 0.00% 0.00% permisos 1 0 0 0 ! 0 0 j 0 0 0 0 1 1.00 consejo municipal 100.00% ' 0.00% 0.00% 0100% ! 0.00% 0.00% 0.00% 0.00% E 0.00% 0.00% 1 0 J 0 `. 0 0 0 0 0 0 0 1 1.00. k Y Y N 7 a 0 C ca a ch Co M d O V O v— O C c0 0. O C L L M� W V/ Y V Y Q 30 / 32 Packet Pg. 1434 r 13 Favor de clasificar en orden, con 1 siendo la caracteristica que mas quiere que San Bernardino tenga en el futuro. Answpredt 1 Skipped;x;58 Una administraci... Un centro Wbftrde y;. Una ciudad quo tiene una... Una ciudad C ecologica. E W Una ciudad que es administr... < Q O Una comunidad _ segura y... nt IL Una ciudad en M LO la cual todo... 00 M Un lugar donde puedo criar... > O 0. 1 2 3 4 5 8 7 B 9 10 � 4- O C c0 CL 1 2 3 4 5 6 7 8 Total Score O C Una administration municipal que 0.00% 0.00% 0.00% 0.00% 0,00% 0.00% 0100% 0.00% sea mas acogedora y receptiva a 0 0 0 0 0 0 0 0 0 0.00 tC! C negocios nuevos y existentes. L O C]0 Un centro vibrante y vigoroso con 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% C R una variedad de tiendas, 0 0 0 1 0 0 0 0 1 5.00 to restaurantes y actividades. C d Una ciudad que tiene una cultura a 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% identidad singulares. 0 1 0 0 0 0 0 0 1 7.00 V tC Una ciudad ecologica. 0100% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% Q 0 0 0 0 0 0 1 0 1 2.00 Una ciudad que es administrada 0100°/ 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% con eficacia y toma decisiones 0 0 1 0 0 0 0 0 1 6.00 basandose en el bien de sus ciudadanos y su futuro. Una comunidad segura y 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% saludable. 1 0 0 0 0 0 0 0 1 8.00 Una ciudad en la cual todos sus 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% ciudadanos laboran juntos para 0 0 0 0 1 0 0 0 1 4.00 cuidarse entre si y de la comunidad. Un lugar donde puedo criar a mis 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0100°/ hijos y donde ellos se quieren 0 0 0 0 0 1 0 0 1 300 quedar para criar a sus hijos. 31 / 32 Packet Pg. 1435 6Aa 'I'l- Q14 GCual es una de las cosas por la cual estA mas orgulloso de ser un ciudadano de la ciudad de San Bernardino? Answered;i Skipped:458 # Responses Date 1 diversidad 2/18/20159:34 AM C d E r N 'a a w O _ ca a ch LO M d O V N O c a O L _ L Md W _ 1� U) Y _ d E V t+ i+ Q i 32 / 32 Packet Pg. 1436`< 6 A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Attachment III. Summary of Participatory Budgeting Framework Implemented in the City of Vallejo In 2012, the City of Vallejo underwent a major project to integrate participatory budgeting (PB) into its City-wide budgeting process. This attachment describes the major steps involved in the implementation of PB during its first year (2013) in the City of Vallejo. It is worth noting that the City of Vallejo did not develop its PB framework on its own. It was supported by a number of non-governmental organizations and student researchers. More specifically, the Participatory Budgeting Project, a nonprofit organization whose mission is to E support PB processes that deepen democracy, served as the City's primary consultant throughout this process. The City also received guidance and expertise from the Davenport Institute at Q Pepperdine University School of Public Policy, the Goldman School of Public Policy at UC — Berkeley, and the New America Foundation. CL Most importantly,though, the success of this project depended on the community participants who LO dedicated their time and attention to improving their City and building a stronger, more vibrant democracy. First Year PB Process in the City of Vallejo 0 Step 1:Develop Participatory Budget(PB)Rulebook • Issued an open call for Participatory Budgeting Steering Committee(PBSC) applications to more 0 than 80 civic organizations. 0 • Committee of 20 PBSC members formally appointed by City Council. o c • PBSC developed PB Rulebook that outlined the process, including the adoption of goals, establishment of project eligibility criteria, creation of a timeline, and an outline of key roles and responsibilities for all stakeholders. m Step 2:Brainstorm Ideas (October—December 2012) m • Held nine budget assemblies over five weeks,where residents and stakeholders brainstormed ideas for how to spend$3.2 million of the City budget. E • Facilitated budget assemblies, incorporating strategies such as dot-voting to assess consensus around different focal areas. w • Examples of ideas discussed include: cameras in police vehicles,branding to improve City image, Q street improvements,performing art programs,public access wifi-system downtown, etc. Step 3: Turn Ideas into Project Proposals (December 2012—April 2013) • Over 100 volunteer budget delegates met in committees to transform the community's initial ideas into full proposals. • Delegates put in thousands of volunteer hours to turn 800 ideas into 33 viable proposals to be presented on the"Participatory Budgeting Official Ballot." • Project ideas had to meet three criteria: 1)benefit the public;2)be a one-time expenditure; 3)be implemented by the City or in collaboration with a public agency,non-profit organization or religious institution. Page 80 Packet Pg. 1437 `6Aa City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Step 4:Project Expos (April 2013) • Delegates presented 33 draft project proposals to the community for feedback during large community events. Each project proposal was presented by the delegate(s)who prepared it on a large poster. Community members were invited to attend,ask questions,and offer feedback. Step S: Vote on Projects (May 2013) • Almost 4,000 residents voted on which projects to fund. • Ballot centers had project posters on display, so voters could read about proposed projects, compare costs and impacts. • For the first year,residents created and approved 12 public projects, from community gardens to Y youth scholarships to park rehabilitation,all within the$3.2 million in discretionary spending allotted to the implementation of PB projects. E N 7 Step 6:Implement PB Projects and Summarize Results (June 2013 and onward) a • Results of the balloting were brought before City Council,who turned the 12 project proposals over o to staff for complete implementation analysis and planning. r- • Each project was presented to Council under separate resolutions between July and October 2013. a. • Projects with intricate planning issues,potential eligibility problems,or requiring further development were reviewed by City Staff and changes were made where necessary(but the projects' M original intention was maintained). n • City is posting updates to Year 1 projects on the City's website,so residents can see implementation progress on each of the 12 approved projects as they unfold. o m Since its first year of PB, the City of Vallejo has successfully completed the second 2014 cycle with o a new round of community projects using a similar framework. City of Vallejo staff is currently c=o organizing its third cycle of PB to develop projects for the next fiscal year. o L ca _ L d m _ R _ d E V a Page 81 Packet Pg. 1438 6.A.a City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court Attachment IV. Long-Range Financial Plan BASELINE BUDGET FY 2014115 FY 2015116 FY 2016117 FY 2017118 FY 2018119 FY 2019120 FY 2020121 FY 2021122 FY 2022123 FY 2023124 REVENUES Total Property Taxes 29,649,641 32,018,760 33,015,354 32,405,037 33,770,058 35,220,458 36,916,468 38,701,511 39,999,876 41,349,434 Total Sales and Use Tax 38,426,488 39,102,942 38,794,146 40,564,286 42,605,493 44,725,133 46,155,852 45,542,930 40,566,701 39,822,043 Total Franchise Fees 3,352,990 3,406,240 3,448,449 3,509,008 3,570,737 3,628,086 3,686,518 3,746,055 3,806,721 3,855,648 Total Other Taxes 32,586,435 33,803,824 33,317,787 33,832,849 34,374,270 34,634,393 34,896,534 35,175,027 35,469,859 35,056,153 Total Licenses and Permits 2,902,613 2,953,764 2,961,729 3,016,346 3,078,012 3,141,299 3,191,565 3,242,710 3,294,751 3,303,149 Total Fines and Penalties 2,366,020 2,413,340 2,461,607 2,510,839 2,561,056 2,612,277 2,664,523 2,717,813 2,772,170 2,827,613 Total Use Of Money and Property 648,600 660,952 673,551 686,402 699,510 712,880 726,518 740,428 754,617 769,089 = N Total Intergovernmental 2,988,339 1,695,462 1,706,493 1,717,634 1,796,327 1,807,692 1,819,171 1,830,764 1,842,473 1,854,300 Total Charges For Services 4,749,241 5,155,265 5,227,378 5,343,806 5,418,831 5,539,962 5,618,020 5,744,045 5,825,255 5,956,362 N Total Miscellaneous 5,760,800 5,785,155 5,809,817 5,834,788 5,860,075 5,885,680 5,911,610 5,937,867 5,964,458 5,991,386 Transfers In-Sewer Line Maint Fund 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 Transfers In-Refuse Fund 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 Q Total Transfers In 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 0 Total Revenues 126,331,167 129,895,705 130,316,311 132,320,994 136,634,370 140,807,863 144,486,776 146,279,151 143,196,880 143,685,177 EXPENDITURES Salaries-Swom 35,873,759 36,949,972 38,058,471 39,200,225 40,376,232 41,587,519 42,835,144 44,120,199 45,443,805 46,807,119 �- Salaries-Miscellaneous 19,300,543 19,686,554 20,080,285 20,481,891 20,891,528 21,309,359 21,735,546 22,170,257 22,613,662 23,065,935 Cl) Salary Savings (5,199,996) u7 Total Salaries 49,974,306 56,636,526 58,138,756 59,682,116 61,267,760 62,896,878 64,570,691 66,290,456 68,057,467 69,873,054 00 M Total Special Salaries 946,895 946,895 946,895 946,895 946,895 946,895 946,895 946,895 946,895 946,895 - Total Overtime 8,732,840 8,994,825 9,264,670 9,542,610 9,828,888 10,123,755 10,427,468 10,740,292 11,062,500 11,394,375 L Total Other Pay 2,241,550 1,741,434 1,775,224 1,809,688 1,844,839 1,880,692 1,917,259 1,954,557 1,992,600 2,031,402 Total PERS Retirees Health 411,250 419,475 427,865 436,422 445,150 454,053 463,134 472,397 481,845 491,482 > Total PARS 245,155 245,155 245,155 245,155 245,155 245,155 245,155 245,155 245,155 V PERS Retirement-Fire 3,506,325 4,802,881 5,381,509 6,044,116 6,577,161 7,094,247 7,245,205 7,443,739 7,647,799 7,857,535 PERS Retirement-Police 7,091,185 9,731,346 10,900,468 12,239,104 13,315,567 14,359,569 14,663,504 15,063,567 15,474,766 15,897,411 PERS Retirement-Misc. 3,652,337 4,515,637 4,684,445 5,003,612 5,375,503 5,760,255 5,810,018 5,926,068 6,021,798 6,142,084 0 Total PERS Retirement 14,249,846 19,049,864 20,966,422 23,286,833 25,268,231 27,214,071 27,718,727 28,433,374 29,144,363 29,897,030 2 Total Health and Life Insurance 5,953,217 5,888,178 6,064,823 6,246,768 6,434,171 6,627,196 6,826,012 7,030,792 7,241,716 7,458,968 0. Total Other Benefits 982,520 1,082,084 1,111,201 1,141,125 1,171,878 1,203,519 1,236,014 1,269,386 1,303,660 1,338,858 0 C Budgeted Vacancy Savings (4,275,200) (2,968,230) (3,100,128) (3,223,589) (3,347,766) (3,430,541) (3,521,499) (3,614,286) (3,710,317) Total Salaries 8 Benefits 83,492,424 90,729,236 95,972,781 100,237,483 104,229,379 108,244,447 110,920,814 113,861,805 116,861,914 119,966,903 L- C Total Maintenance and Operations 9,400,665 4,121,576 4,245,126 4,372,380 4,503,449 4,638,447 4,777,492 4,920,705 5,068,210 5,220,138 W Total Contract Services 10,695,329 9,894,807 7,100,228 7,311,769 7,529,613 7,753,947 7,984,966 8,222,867 8,467,857 8,720,513 m Total Internal Service Charges 14,870,924 15,713,490 16,150,891 16,656,885 17,179,329 17,718,782 18,266,526 18,831,584 19,414,516 20,015,901 C: Total Capital Outlay 147,495 25,750 26,523 27,318 28,138 28,982 29,851 30,747 31,669 32,619 (q DebtService-Principal-Remaining 1,304,460 1,335,880 121,172 124,577 128,077 131,676 135,376 139,181 - - a,; Debt Service-Principal-2005 POBS - 856,483 833,750 807,686 785,899 761,980 738,961 716,259 698,352 675,548 C Debt Service-Principal-1996 COP 610,000 645,000 685,000 720,000 760,000 805,000 850,000 900,000 950,000 v Debt Service-Principal-1999 COP 275,000 290,000 305,000 325,000 340,000 360,000 380,000 400,000 420,000 445,000 s Total Debt Service Principal 2,189,460 3,127,363 1,944,922 1,977,263 2,013,976 2,058,656 2,104,337 2,155,440 2,068,352 1,120,548 U Debt Service-Interest-Remaining 80,070 44,357 22,557 18,741 14,817 10,784 6,636 2,373 - - Ca Debt Service-Interest-2005POBS - 2,637,411 2,715,144 2,791,208 2,867,995 2,946,913 3,029,933 3,107,635 3,185,542 3,263,346 Q Debt Service-Interest-1996 COP 394,115 359,955 323,190 284,145 243,105 199,785 153,900 105,450 54,150 Debt Service-Interest-1999 COP 212,988 197,450 181,088 163,763 145,475 126,225 105,875 84,425 61,875 38,088 Total Debt Service Principal 687,173 3,239,173 3,241,979 3,257,857 3,271,392 3,283,707 3,296,344 3,299,883 3,301,567 3,301,434 Lease Payments 216,021 143,521 99,261 55,000 55,000 1,127,500 Grand Total Debt Service 3,092,654 6,510,057 5,286,162 5,290,120 5,340,368 6,469,863 5,400,681 5,455,323 5,369,919 4,421,982 Total Other - _ Transfers Out-Library Fund 1,350,000 2,176,604 2,038,712 2,093,187 2,150,411 2,209,201 2,258,963 2,311,984 2,365,648 2,421,363 Transfers Out-Animal Control Fund 588,090 591,804 995,324 1,050,422 1,109,273 1,169,830 1,214,046 1,262,800 1,311,621 1,362,871 Transfers Out-Assessment Districts 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 148,810 233,257 Transfers Out-Cemetery Fund 237,481 222,324 227,485 233,119 239,013 245,082 250,554 256,328 262,218 268,325 Transfers Out-Baseball Stadium Fund 85,643 88,160 90,766 93,448 96,211 99,054 101,983 104,997 108,101 111,297 Total Transfers Out 2,341,214 3,158,892 3,432,287 3,550,176 3,674,908 3,803,167 3,905,546 4,016,109 4,196,398 4,397,113 Total Expenditures 124,040,705 130,153,807 132,213,997 137,446,132 142,485,184 148,657,635 151,285,876 155,339,140 159,410,483 162,775,170 Operating(Deficits)or Surplus 2,290,462 (258,102) (1,897,686) (5,125,137) (5,850,814) (7.849,772) (6,799,099) (91059,989) (16.213,604) (19,089,993) Page 82 Packet Pg. 1439 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court FY 2014115 FY 2015116 FY 2016117 FY 2017118 FY 2018119 FY 2019120 FY 2020121 FY 2021122 FY 2022123 FY 2023124 DEFERRED OBLIGATIONS Deferred&Unpaid POB Obligation - 10,027,094 - - - - - - - - Deferred&Unpaid General Obligations 4,248,899 - - - - CALPERs Deferral Amortization 400,000 400,000 400,000 400,000 400,000 Total Deferrals 14,675,993 400,000 400,000 400,000 400,000 FISCAL&SERVICE STABILIZATION Capital Investment-Building&Fixtures 3,626,348 3,626,348 3,626,348 3,626,348 3,626,348 3,626,348 3,626,348 3,626,348 3,626,348 Capital Investment-Parks 440,462 440,462 440,462 440,462 440,462 440,462 440,462 440,462 440,462 Capital Investment-Public Right-Of-Way 2,460,000 2,535,000 2,585,000 2,535,000 2,629,322 2,512,961 2,476,961 2,362,361 2,600,000 Capital Investment-IT Infrastructure 1,143,251 3,619,162 2,843,775 2,582,423 2,526,416 285,813 904,790 710,944 645,606 Capital Investment-Fleet-Fire 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 400,000 400,000 Capital Investment-Fleet-Police 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Capital Investment-Fleet-Other 500,000 500,000 250,000 250,000 100,000 100,000 100,000 100,000 100,000 ISF-Workers'Comp-Deficit Recovery 500,000 520,000 540,000 560,000 580,000 600,000 620,000 640,000 660,000 ISF-General Liability-Deficit Recovery 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 W Organizational Improvements 1,650,000 1,600,000 2,100,000 2,600,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 E Total Stabiization 13,020,061 15,550,972 15,105,584 15,324,233 15,742,548 13,415,584 14,028,561 12,550,115 12,752,416 W 7 BASELINE FORECAST SUMMARY Total Baseline Revenues 126,331,167 129,895,705 130,316,311 132,320,994 136,634,370 140,807,863 144,486,776 146,279,151 143,196,880 143,685,177 Q Total Baseline Expenses 12040,705 705 130153 807 132,213,997 137 446132 142 485184 148,657,635 151,285,876 155 339140 159,410,483 162 775170 O Net Revenues(Expenses)Before Adjs 2,290,462 (258,102) (1,892686) (5,125,137) (5,850,814) (7,849,772) (6,799,099) (9,059,989) (16,213,604) (19,089,993) _ DEFERRED OBLIGATIONS CalPERS Penalties - (400,000) (400,000) (400,000) (400,000) (400,000) 0 Deferred&Unpaid Obligations (14,275,993) th FISCAL&SERVICE STABILIZATION to 00 Capital Investments/Expense Deferrals (13,020,061) (15,550,972) (15,105,584) (15,324,233) (15,742,548) (13,415,584) (14,028,561) (12,550,115) (12,752,416) M Staffing Additions - - - RESTRUCTURING Measure Z Sales Tax Extension - - - - - - 2,077,447 8,309,787 8,136,943 > Contract Fire&EMS Services 4,454,490 8,940,462 9,886,235 9,612,343 9,641,757 9,959,863 10,213,406 10,369,740 10,506,376 v Other Restructuring Savings 26,725,060 11,619,230 11,847,285 12,076,113 12,015,159 12,257,696 12,512,234 12,764,195 13,033,903 O Beginning Fund Balance 9,368,000 11,658,462 14,883,856 17,594,890 18,697,688 18,811,097 16,475,694 18,478,571 20,193,108 22,873,111 w Ending Fund Balance 11,658,462 14,883 856 17,594,890 18,697,688 18,811,097 16,475,694 18,478,571 20,193,108 22 873111 22,707,924 O Balance as%of Total Expense 9.4% 11.8% 13.8% 14.2% 13.8% 11.5% 13.0% 13.8% 15.4% 14.9% r- Balance Goal 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% w a O c =c L tQ L /v lb r Q E t U r+ Q 7. Page 83 Packet Pg.9440 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court BASELINE BUDGET FY 2024125 FY 2025126 FY 2026(27 FY 2027128 FY 2028129 FY 2029130 FY 2030131 FY 2031132 FY 2032133 FY 2033134 REVENUES Total Property Taxes 40,684,746 42,479,360 44,785,395 47,000,321 49,332,606 51,048,620 52,832,412 52,045,056 54,400,106 56,869,609 Total Sales and Use Tax 41,468,160 43,480,735 45,577,910 46,965,049 48,380,558 49,824,609 48,806,133 50,722,882 53,080,965 55,533,793 Total Franchise Fees 3,924,317 3,994,330 4,059,743 4,126,411 4,194,360 4,263,617 4,320,404 4,398,439 4,478,019 4,552,783 Total Other Taxes 35,693,053 36,358,521 36,727,175 37,102,934 37,495,102 37,903,732 37,552,534 38,323,881 39,127,036 39,612,029 Total Licenses and Permits 3,364,785 3,434,460 3,505,981 3,562,634 3,620,285 3,678,953 3,687,808 3,757,416 3,836,192 3,917,069 Total Fines and Penalties 2,884,165 2,941,848 3,000,685 3,060,699 3,121,913 3,184,351 3,248,038 3,312,999 3,379,259 3,446,844 Total Use Of Money and Property 783,851 798,908 814,266 829,931 845,910 862,208 878,832 895,789 913,085 930,727 Total Intergovemmental 1,866,244 1,878,308 1,890,493 1,902,799 1,915,229 1,927,783 1,940,462 1,953,268 1,966,203 1,979,266 Total Charges For Services 6,040,863 6,177,257 6,265,181 6,407,075 6,498,562 6,646,178 6,741,372 6,894,940 6,993,991 7,153,752 Total Miscellaneous 6,018,656 6,046,274 6,074,244 6,102,572 6,131,262 6,160,320 6,189,751 6,219,560 6,249,753 6,280,335 Transfers In-Sewer Line Maint Fund 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 Transfers In-Refuse Fund 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 Total Transfers In 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 2,900,000 Total Revenues 145,628,841 150,490,003 155,601,074 159,960,426 164,435,788 168,400,372 169,097,747 171,424,231 177,324,608 183,176,207 EXPENDITURES Salaries-Swom 48,211,332 49,657,672 51,147,403 52,681,825 54,262,279 55,890,148 57,566,852 59,293,858 61,072,674 62,904,854 U) to Salaries-Miscellaneous 23,527,254 23,997,799 24,477,755 24,967,310 25,466,656 25,975,990 26,495,509 27,025,420 27,565,928 28,117,247 M Salary Savings - - - - O Total Salaries 71,738,587 73,655,472 75,625,158 77,649,135 79,728,936 81,866,137 84,062,362 86,319,277 88,638,602 91,022,100 Q Total Special Salaries 946,895 946,895 946,895 946,895 946,895 946,895 946,895 946,895 946,895 946,895 0 Total Overtime 11,736,207 12,088,293 12,450,942 12,824,470 13,209,204 13,605,480 14,013,645 14,434,054 14,867,076 15,313,088 Total Other Pay 2,070,980 2,111,350 2,152,527 2,194,528 2,237,370 2,281,069 2,325,644 2,371,112 2,417,492 2,464,802 Total PERS Retirees Health 501,311 511,338 521,564 531,996 542,636 553,488 564,558 575,849 587,366 599,114 d Total PARS 245,155 245,155 245,155 245,155 245,155 245,155 245,155 245,155 245,155 245,155 PERS Retirement-Fire 8,056,839 8,261,178 8,453,434 8,632,204 8,832,543 9,056,110 9,265,916 8,881,988 9,103,896 8,760,399 cM tr') PERS Retirement-Police 16,298,961 16,710,664 17,097,950 17,457,996 17,861,595 18,312,083 18,734,779 17,958,995 18,406,218 17,712,334 M PERS Retirement-Misc. 6,217,666 6,317,845 6,419,549 6,497,802 6,576,622 6,656,002 6,762,454 5,923,634 5,986,796 5,599,794 Total PERS Retirement 30,573,466 31,289,667 31,970,933 32,588,001 33,270,761 34,024,195 34,763,149 32,764,617 33,496,910 32,072,527 >, Total Health and Life Insurance 7,682,737 7,913,219 8,150,615 8,395,134 8,646,988 8,906,398 9,173,589 9,448,797 9,732;261 10,024,229 Total Other Benefits 1,375,700 1,413,558 1,450,763 1,488,948 1,528,139 1,568,362 1,609,644 1,652,015 1,695,501 1,740,133 Budgeted Vacancy Savings (3,806,131) (3,905,249) (4,005,437) (4,105,928) (4,210682) (4319,915) (4,431139) (4462733) (4,578818) (4,632841) 0 Total Salaries&Benefits 123,064,907 126,269,717 129,509,115 132,758,334 136,145,400 139,677,264 143,273,502 144,295,039 148,048,440 149,795,202 W 4- Total Maintenance and Operations 5,376,620 5,537,793 5,703,798 5,874,779 6,050,885 6,232,270 6,419,093 6,611,516 6,809,708 7,013,841 0 Total Contract Services 8,980,708 9,248,667 9,524,621 9,808,809 10,101,476 10,402,877 10,713,270 11,032,925 11,362,117 11,701,132 t0O Total Internal Service Charges 20,636,339 21,276,448 21,936,867 22,617,491 23,319,702 24,044,202 24,791,715 25,562,991 26,358,804 27,179,955 p. Total Capital Outlay 33,598 34,606 35,644 36,713 37,815 38,949 40,118 41,321 42,561 43,838 0 Debt Service-Principal-Remaining - - - - - - - - Debt Service-Principal-2005POBS 926,283 2,115,000 2,300,000 2,500,000 2,705,000 2,930,000 3,170,000 3,420,000 3,685,000 3,970,000 Debt Service-Principal-1996 COP - - - - - - - - R Debt Service-Principal-1999 COP 470,000 - - - - - - - - Total Debt Service Principal 1,396,283 2,115,000 2,300,000 2,500,000 2,705,000 2,930,000 3,170,000 3,420,000 3,685,000 3,970,000 m Debt Service-Interest-Remaining - - - - - - - 0 Debt Service-Interest-2005POBS 3,076,496 1,947,147 1,822,909 1,687,837 1,541,368 1,382,800 1,211,146 1,025,703 825,768 610,356 c4 Debt Service-Interest-1996 COP - - - - - - _ _ Debt Service-Interest-1999 COP 12,925 - - TotalDebtService Prncipal 3,089,421 1,947,147 1,822,909 1,687,837 1,541,368 1,382,800 1,211,146 1,025,703 825,768 610,356 N Lease Payments E Grand Total Debt Service 4,485,704 4,062,147 4,122,909 4,187,837 4,246,368 4,312,800 4,381,146 4,445,703 4,510,768 4,580,356 U Total Other - _ _ _ _ cf Transfers Out-Library Fund 2,477,044 2,534,844 2,594,094 2,654,070 2,715,541 2,778,548 2,843,939 2,882,060 2,949,367 3,004,613 Q Transfers Out-Animal Control Fund 1,412,980 1,465,582 1,519,511 1,573,499 1,628,834 1,685,546 1,745,050 1,756,848 1,817,019 1,855,186 Transfers Out-Assessment Districts 262,736 293,469 325,337 358,216 392,295 427,617 434,390 496,300 535,465 573,087 Transfers Out-Cemetery Fund 274,502 280,906 287,493 294,213 301,122 308,229 315,594 321,060 328,749 335,654 Transfers Out-Baseball Stadium Fund 114,587 117,974 121,462 125,054 128,750 132,557 136,476 140,511 144,666 148,944 Total Transfers Out 4,541,849 4,692,775 4,847,897 5,005,052 5,166,542 5,332,497 5,475,449 5,596,779 5,775,266 5,917,484 Total Expenditures 167,119,725 171,122,153 175,660,851 180,289,015 185,068,188 190,040,859 195,094,292 197,586,274 202,907,664 206,231,807 Operating(Deficits)or Surplus (21,490,885) (20,632,150) (20,079,777) (20,328589) (20,632,400) (21,640,467) (25,996,546) (26,162,043) (25,583,056) (23,055,599) Page 84 Packet Pg. 1441 6 City of San Bernardino Proposed Recovery Plan in Support of the Plan of Adjustment for Submittal to Bankruptcy Court FY 2024125 FY 2025126 FY 2026127 FY 2027128 FY 2028129 FY 2029130 FY 2030131 FY 2031132 FY 2032133 FY 2033134 DEFERRED OBLIGATIONS Deferred&Unpaid POB Obligation - - - - - - - - - - Deferred&Unpaid General Obligations CALPERs Deferral Amortization Total Deferrals - - - - FISCAL&SERVICE STABILIZATION Capital Investment-Building&Fixtures 3,626,348 2,541,297 2,548,531 2,555,909 2,563,435 2,571,112 2,578,942 2,586,928 2,595,075 2,603,384 Capital Investment-Parks 440,462 440,462 440,462 440,462 440,462 440,462 440,462 440,462 440,462 440,462 Capital Investment-Public Right-Of-Way 2,704,000 2,812,160 2,924,646 3,041,632 3,163,298 3,289,829 3,421,423 3,558,280 3,700,611 3,848,635 Capital Investment-IT Infrastructure 631,604 571,625 1,809,581 1,421,887 1,291,211 285,813 904,790 710,944 645,606 631,604 Capital Investment-Fleet-Fire 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 Capital Investment-Fleet-Police 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Capital Investment-Fleet-Other 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 ISF-Workers'Comp-Deficit Recovery 680,000 700,000 720,000 740,000 760,000 780,000 800,000 820,000 840,000 860,000 ISF-General Liability-Deficit Recovery 190,000 200,000 210,000 220,000 230,000 240,000 250,000 260,000 270,000 280,000 W Organizational Improvements 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 E Total Stabiization 12,872,414 11,865,545 13,253,220 13,019,891 13,048,406 12,207,216 12,995,617 12,976,613 13,091,753 13,264,085 y BASELINE FORECAST SUMMARY Total Baseline Revenues 145,628,841 150,490,003 155,601,074 159,960,426 164,435,788 168,400,372 169,097,747 171,424,231 177,324,608 183,176,207 Q Total Baseline Expenses 167119 725 171 122153 175,680,851 180,289,015 185 068188 190,040,859 195,094,292 197,586,274 202,907,664 206,231,807 O Net Revenues(Expenses)Before Adis (21,490,885) (20,632,150) (20,079,777) (20,328,589) (20,632,400) (21,640,487) (25,996,546) (26,162,043) (25,583,056) (23,055,599) O DEFERRED OBLIGATIONS CaIPERS Penalties Deferred&Unpaid Obligations FISCAL&SERVICE STABILIZATION to 00 Capital Investments/Expense Deferrals (12,872,414) (11,865,545) (13,253,220) (13,019,891) (13,048,406) (12,207,216) (12,995,617) (12,976,613) (13,091,753) (13,264,085) M Staffing Additions - - - - - - - - - - RESTRUCTURING Measure Z Sales Tax Extension 8,455,911 8,850,802 9,264,135 9,534,647 9,813,059 10,099,600 9,889,529 10,277,198 10,757,143 11,259,502 > Contract Fire&EMS Services 10,764,925 11,029,837 11,301,269 11,579,379 11,864,334 12,156,301 12,455,454 12,761,967 13,076,024 13,397,810 V Other Restructuring Savings 13,609,106 13,403,778 13,691,072 13,988,016 14,283,971 14,602,282 14,928,736 15,252,783 15,589,129 15,963,919 y Beginning Fund Balance 22,707,924 21,174,568 21,961,291 22,884,769 24,638,332 26,918,890 29,929,372 28,210,928 27,364,220 28,111,708 Ending Fund Balance 21,174,568 21 961291 22,884,769 24,638,332 26,918,890 29,929,372 28,210,928 27,364,220 28111 708 32,413,255 O Balance as%of Total Expense 13.6% 13.9% 14.0% 14.7% 15.7% 17.1% 15.6% 15.0% 15.0% 17.0% Balance Goal 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 11 O C L L M� W (d N Qf E V Y i� Q Page 85 Packet Pg. 1442 1 RESOLUTION NO. 2015- 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 3 OF SAN BERNARDINO AUTHORIZING THE IMPLEMENTATION OF THE CITY'S 4 FISCAL RECOVERY PLAN, THE FILING OF THE CHAPTER 9 PLAN OF ADJUSTMENT AND DISCLOSURE STATEMENT,AND THE FILING OF RELATED 5 DOCUMENTS 6 WHEREAS, on July 18, 2012,the Mayor and Common Council of the City of San 7 Bernardino adopted Resolution 2012-206 authorizing the filing of a petition under chapter 9 of 8 = d the United States Bankruptcy Code; and 9 N 'a 10 a 11 WHEREAS, on August 1, 2012, the City filed a petition under chapter 9 of the United 12 States Bankruptcy Code commencing Case No. 6:12-bk-28006-MJ now pending in the United Cl) LO 13 States Bankruptcy Court for Central District of California, Riverside Division; and M c 0 14 15 WHEREAS, on August 28, 2013, the Honorable Meredith A. Jury determined that the 16 City was eligible to be a debtor under chapter 9, that the City filed its chapter 9 petition in good d faith and that the petition met all of the applicable requirements of the United States N 17 18 Bankruptcy Code, and entered an order for relief on September 17, 2013; and Q O 19 r- a 20 WHEREAS, on November 18, 2014 the Honorable Meredith A. Jury ordered the City r as 21 to file a proposed plan of adjustment by no later than May 30, 2015; and E �o 22 Q 23 WHEREAS, on April 6, 2015, the Mayor and Common Council of the City of San 24 Bernardino adopted Resolution 2015-71 establishing and adopting the Operating Practices for 25 Good Governance attached thereto as Exhibit A; and 26 27 WHEREAS, the Operating Practices for Good Governance provide that the City 28 Manager shall have both the authority and accountability to produce a confirmable Plan of 1 DOC S SM/3015834v3/200430-0003 Packet Pg. 1443` 6 A.b 1 Adjustment to the Common Council of the City of San Bernardino for approval, and shall also 2 have the responsibility for implementing the Plan of Adjustment to ensure the City exits its 3 chapter 9 Bankruptcy Case as soon as possible; and 4 5 WHEREAS, the City shall continue to work with the Charter Review Committee for 6 the purposes of reviewing the City Charter for governance and operational efficiencies and effectiveness consistent with the City's Recovery Plan; and r 8 a=i E f!1 9 WHEREAS, the City is committed in its efforts to resolve the claims of creditors a 10 0 through mediation or consensually,but must also proceed in an efficient and cost effective 11 � manner and comply with the Bankruptcy Court's order to file a proposed plan of adjustment a. 12 M with the United States Bankruptcy Court by no later than May 30, 2015 in furtherance of the o 13 completion of the City's chapter 9 case and in the best interests of the City's residents; and o 14 O 15 WHEREAS, the Mayor and Common Council understand and adopt the Recovery Plan, w 16 y attached as Exhibit 1, as may be amended from time to time, as circumstances may warrant; and E 17 N .a 18 WHEREAS, the Mayor and Common Council understand and accept that the Plan of = 19 Adjustment, the Disclosure Statement and any documents related to the Plan of Adjustment and a 20 Disclosure Statement, may be amended from time to time,prior to their filing, as the claims of E 21 creditors are resolved or other factual and legal circumstances may warrant. 22 Q 23 24 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 25 COUNCIL OF THE CITY OF SAN BERNARDINO,AS FOLLOWS: 26 27 SECTION 1. Findings. The foregoing recitals are true and correct and the Mayor and I 28 Common Council hereby so find and determine. 2 I DOC S S M/3 015 8 34v3/20043 0-0003 Packet Pg. 1444 6.A.b 1 2 SECTION 2. Major Actions and Implementation of Recovery Plan Supporting the 3 Plan of Adjustment. The Mayor and Common Council hereby commit to the implementation 4 of any and all of the actions described in the Recovery Plan supporting the Plan of Adjustment, 5 including without limitation, contracting out municipal services, which are aimed at restoring 6 and maintaining budget, service and cash solvency for the City and its residents. 7 8 SECTION 3. Authorization To File Disclosure Statement and Plan of Adjustment, E 9 0 and Further Related and Necessary Documents in Furtherance of the Resolution of the .2 10 w City's Chapter 9 Case. ° 11 � a 12 M (a) The City Attorney or his appropriate designee is hereby authorized and directed, on o 13 behalf of and in the name of the City, and, where appropriate, with the assistance and/or advice o 14 of the City Manager, to approve and file the Disclosure Statement and the Plan of Adjustment, o 15 aNi and to file amendments to the Plan of Adjustment and/or the Disclosure Statement and all 16 = d related and necessary documents, in furtherance of the resolution of the City's chapter 9 case. 17 y _ 18 Q (b) The City Attorney and all other appropriate officials and employees of the City are 0 19 c� hereby authorized to execute and file all other papers, and to take any and all actions which they n' 20 shall deem necessary and proper in connection with the filing of the Plan of Adjustment and the E 21 Disclosure Statement, and for the execution of the major actions and implementation of the y 22 Q 23 Plan of Adjustment, with a view to the successful completion of the City's chapter 9 case. 24 25 SECTION 4. Other Actions. The City Attorney, City Clerk, and other appropriate 26 officers of the City, each acting alone, are authorized to take such other actions as are 27 appropriate to carry out the intent of this Resolution. 28 3 DOC S SM/3015 8 34v3/200430-0003 Packet Pg. 1445 6 A 1 SECTION 5. Effectiveness. This Resolution shall take effect immediately upon its 2 adoption. 3 /// 4 5 7 w. 8 c /// E 9 N 10 Q o 11 c�a a 12 c^, 00 13 o 14 o 15 N m w 16 (D E 17 U) /// =a 18 Q 4- /// _ 19 ra /// a 20 /// E- 21 22 Q 23 24 25 26 27 28 /// 4 DOCS SM/3 015 8 34v3/200430-0003 Packet Pg. 1446 x 6:A.b r 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN 2 BERNARDINO AUTHORIZING THE IMPLEMENTATION OF THE CITY'S FISCAL 3 RECOVERY PLAN, THE FILING OF THE CHAPTER 9 PLAN OF ADJUSTMENT 4 AND DISCLOSURE STATEMENT,AND THE FILING OF RELATED DOCUMENTS 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the r 8 18th day of May, 2015, by the following vote, to wit: E 9 Council Members: AYES NAYS ABSTAIN ABSENT to Q w MARQUEZ ° 11 = BARRIOS a 12 M In 00 13 VALDIVIA 14 SHORETT _ ... ° 15 N NICKEL 16 JOHNSON E 17 N 18 MULVIHILL Q ° 19 = 20 Georgeann Hanna, City Clerk a 21 The foregoing Resolution is hereby approved this day of May, 2015. ° 22 Q 23 R. CAREY DAVIS, Mayor 24 City of San Bernardino Approved as to form: 25 GARY D. SAENZ, City Attorney 26 27 By. 28 5 DOCS SM/3015 8 34v3/200430-0003 Packet Pg. 1447