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HomeMy WebLinkAbout08-11-1998 Minutes MINUTES COMMUNITY DEVELOPMENT COMMISSION CITY OF SAN BERNARDINO ADJOURNED REGULAR MEETING AUGUST 11, 1998 ECONOMIC DEVELOPMENT AGENCY BOARD ROOM This is the time and place set for an adjourned regular meeting of the Community Development Commission of the City of San Bernardino from the joint regular meeting of the Mayor and Common Council and Community Development Commission held at 8:00 a.m., Monday, August 3, 1998, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The City Clerk has caused to be posted the order of the adjournment of said meeting held on Monday, August 3, 1998, and has on file in the Office of the City Clerk an affidavit of said posting together with a copy of said order which was posted at 3:30 p.m., Monday, August 3, 1998, on or near the door of the place at which said meeting was held. The adjourned regular meeting of the Community Development Commission was called to order by Chairwoman Valles at 9:09 a.m., Tuesday, August 11, 1998, in the Economic Development Agency Board Room, 201 North "E" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Chairwoman Valles; Commissioners Estrada, Lien, Arias, Schnetz, Devlin, Miller; City Clerk Clark, Economic Development Agency Executive Director Van Osdel. Absent: Commissioner Anderson; City Attorney Penman. ECONOMIC DEVELOPMENT AGENCY BUDGET - FISCAL YEAR 1998/99 (Continued from August 3, 1998) (Rl) Barbara Lindseth, Agency Administrative Services Director, stated that the proposed budget was $49.5 million dollars--a reduction of $9 million from the previous year. She noted that 87 percent of the budget was comprised of contracts, agreements, and bond payments, which staff has no control over; therefore, staff had looked at those line items which were more discretionary in nature to come up with approximately $2.5 million in savings. Ms. Lindseth pointed out that the salaries account would need to be increased by $135,000 to cover the salary and benefits of the new Executive Director position. She noted that the Northwest Project Area Redevelopment Committee (PAC) had been allocated $25,000; however, the PAC was requesting a $223,000 allocation. 1 8/11/1998 Also, the Convention and Visitors Bureau (CVB) Transient Occupancy Tax (TOT) of about $322,000; budget it was proposed to be $250,000. was looking at however, in the Chairwoman Valles requested that Ms. Lindseth read the mission statement for the Economic Development Agency in order to refresh everyone's memory of the goals set forth therein. CITY ATTORNEY PENMAN ARRIVED At 9:20 a.m., City Attorney Penman arrived at the Commission meeting and took his place at the conference table. Ms. Lindseth continued with a line item review of the proposed budget and answered questions regarding same. She stated that last year the Agency had a total of 60 employees, which included the Telecommunications Division and one intern. After deducting the 18 Telecommunications positions and deleting another 18 positions (4 vacant positions were deleted and 14 employees were laid off), the Agency now totals 24 full-time employees. Commissioner Estrada stated that she wanted to see the travel budget for the Mayor and the Agency Executive Director increased in order to allow more travel for bringing business to San Bernardino. However, she stressed that the travel costs must be substantiated. Discussion ensued regarding the current travel policy and the need to review said policy. City Attorney Penman explained the tax base of the Inland Center Mall, which is located in the Inland Valley Development Agency's project area, and how the City's share of revenue is calculated. Commissioner Estrada stated that it was her desire to see an increase to Line Item 6600, General Consulting Agreement, in order to hire an employee/consultant who would be based in Sacramento, dedicated to working full-time for San Bernardino. Commissioner Estrada made a motion, seconded by Commissioner Miller, and unanimously carried, that the Community Development Commission approve up to $30,000 for one-third of the cost of hiring an additional person (contract or other) to work full-time in Sacramento on behalf of the City of San Bernardino, the Economic Development Agency, and the City Water Department, with the remaining two-thirds of the salary to be split between the City of San Bernardino and the San Bernardino Water Department. City Attorney Penman suggested that Chip Nielsen of Nielsen, Merksamer, Parrinello, Mueller & Naylor might be able to help in the selection of a candidate, as he is very involved in national and state issues. 2 8/11/1998 CHAIRWOMAN VALLES EXCUSED At 9:56 a.m., Chairwoman Valles left the Commission meeting, and the duties of Vice Chairwoman were assumed by Commissioner Miller. Convention & Visitors Bureau Ms. Lindseth stated that last year the Convention & Visitors Bureau's (CVB) budget was $400,000 comprised of TOT plus an Agency contribution. She reiterated that the CVB had proposed a budget of $322,000; however, staff was looking at $250,000. Pat Caffery, Chairman of the Convention & Visitors Bureau Board, announced that the Bureau's Executive Director, Jerry Smith, had resigned the previous day. Discussion ensued regarding Route 66, and Mr. Caffery stated that the CVB had not asked for any money this year for Route 66. He stated that the only money they were asking for this year was the $322,000 based on the memorandum of understanding the CVB has with the Agency. Commissioner Devlin commented that there was a $13,000 carryover from last year's Route 66 whlch he did not see plugged into this year's budget. Mr. Caffery stated that there are always expenses that come through after an event which need to be covered, and he would provide an itemized accour-ting of said funds. Discussion ensued regarding police costs for the upcoming Route 66 and whether these costs were being paid by the CVB or being absorbed by the Police Department. Commissioner Estrada stated she would like to see the 1998 budget for Route 66. RECESS MEETING At 10:17 a.m., Vice Chairwoman Miller declared a five-minute recess. RECONVENE MEETING At 10: 27 a. m., Vice Chairwoman Miller reconvened the adjourned regular meeting of the Community Development Commission. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Vice Chairwoman Miller; Commissioners Estrada, Lien, Arias, Schnetz, Devlin, Miller; City Attorney Penman, City Clerk Clark, Economic Development Agency Executive Director Van Osdel. Absent: Commissioner Anderson. 3 8/11/1998 ECONOMIC DEVELOPMENT AGENCY BUDGET - FISCAL YEAR 1998/99 (Continued from August 3, 1998) (Rl) Discussion continued regarding various issues related to the Convention & Visitors Bureau, including the memorandum of understanding between the Agency and the Board of Directors of the Convention & Visitors Bureau. City Attorney Penman reminded the Commission that there is a pending lawsuit to set aside the Transient Occupancy Tax (TOT). This could affect the CVB since part of their budget, though not paid by TOT money, is predicated on a formula of 20 percent of the TOT. Discussion ensued regarding the TOT and how it relates to the money budgeted through the Agency for the CVB. It was noted that the formula and agreement for said funds is contained in the MOU between the CVB Board and the Agency, and if the Commission was considering any changes to the CVB budget they should first review the contents of the MOU. Commissioner Estrada stated that she would like to see a report on the number of conventions that the CVB has brought into the city prior to adopting the budget. Mr. Caffery stated that the hotels are reluctant to release information relative to their meetings and conventions. He stated that the CVB has pursued tourism, Route 66, and the Renaissance Faire. CHAIRWOMAN VALLES RETURNED At 10:50 a.m., Chairwoman Valles returned to the Commission meeting and took her place at the conference table. Chairwoman Valles introduced Ray Herber and Mike McHouston, history teachers from Pacific High School, who were" shadowing" her for the day. Commissioner Estrada made a motion, seconded by Commissioner Arias, to approve funds for the Convention & Visitors Bureau for the next 30 days, to request a report from the CVB on the number of conventions they have brought into the city during the past five years, and to refer all material to the Redevelopment Committee for review. (Note: There was no vote taken.) Commissioner Devlin stated that 30 days was not long enough and suggested approval of funds for the next 90 days. It was noted that there are several agencies involved in the marketing of San Bernardino, including the Chamber of Commerce, Main Street, Inc., and the Economic Development Agency; however, the question remains whether it is being done right. 4 8/11/1998 City Attorney Penman pointed out that the Economic Development Agency was currently operating under a continuing resolution, which would probably cover the CVB; however, if the Commission was anticipating CVB budget cuts, they would need to take some action on the MOU first. Commissioner Miller made a substitute motion, seconded by Commissioner Estrada, that the Convention & Visitors Bureau budget, the MOU between the Agency and the CVB, and the report on the number of conventions brought to San Bernardino by the CVB over the past five years be referred to the next Redevelopment Committee meeting for review; and that the MOU also be referred to the City Attorney's Office for review and report back to the next Redevelopment Committee meeting. (Note: Commissioner Estrada seconded the motion with the understanding that the resolution for continued funding for the Economic Development Agency would cover the Convention & Visitors Bureau.) Commissioner Estrada removed her second to allow for further discussion. The substitute motion failed for lack of a second. Discussion continued on whether relevancy between the numbers on continued funding of the CVB. t.here was going to be the convention report any and commissioner Miller made a substitute motion, seconded by Commissioner Estrada, that the Convention & Visitors Bureau budget, the MOU between the Agency and the CVB, and the report on the number of conventions brought to San Bernardino by the CVB over the past five years be referred to the next Redevelopment Committee meeting for review; and that the MOU also be referred to the City Attorney's Office for review and report back to the next Redevelopment Committee meeting. The substitute motion failed by the following vote: Commissioners Estrada, Arias, Miller. Nays: Commissioners Schnetz, Devlin. Absent: Commissioner Anderson. Ayes: Lien, The Commission continued to discuss options for adopting the Economic Development Agency budget without adopting the budget for the Convention & Visitors Bureau. Commissioner Lien made a motion that. the Community Development Commission refer the Convention & Visitors Bureau MOU to the Redevelopment Committee and the City Attorney's Office for review; and that the Convention & Visitors Bureau continue to operate under a continuing resolution until after the Redevelopment Committee and City Attorney had conducted said review. 5 8/11/1998 The motion failed for lack of a second. (Note: The Council took action on the Convention & Visitors Bureau's budget later in the meeting--see first paragraph, page 9.) Northwest Prolect Area Redevelopment Committee (PAC) Warren Watson, a member of the Northwest PAC, read the first portion of a prepared statement regarding the role of the Northwest PAC and their proposed budget. Wallace Allen, also a member of the PAC, continued with the reading of the prepared statement and spoke to the Commission regarding the PAC's concerns. He pointed out that the present Economic Development Agency staff had not served the needs of the PAC, and with the cutbacks in the EDA st.aff they had no reason to believe the PAC would be included in this year's budget. Discussion ensued regarding the role of the PAC, the fact that they had been nonfunctioning for three to four years, how the PAC had utilized the $25,000 that they were budgeted each year, etc. Mr. Allen stated that they were asking for enough money to hire staff to facilitate operation of the PAC and accomplish certain project.s in their area. Chairwoman Valles pointed out that the Agency is in a transition mode with a new director and a new way of operating. She stated that she did not think the Commission was ready to add this amount to the Agency budget. She added that she would want to give Mr. Van Osdel the opportunity to get a grasp on the complete issue to see what the implications would be for the entire city and the Sixth Ward. Commissioner Arias stated that budget submitted by the PAC, as she representing the entire Sixth Ward. she could not support the did not believe the PAC was Wallace Allen spoke to some of the concerns expressed by Commissioner Arias. Lita Pezant, Chairwoman of the Nort.hwest PAC, spoke regarding the history of the PAC, its proposed budget, and the election process used to elect the PAC members. City Clerk Clark explained the notification contact all residents and property owners in relative to the election. process used to the Sixth Ward 6 8/11/1998 Commissioner Lien expressed concern that $25,000 is being budgeted and spent each year for the Northwest PAC, but is not coming under the purview of the PAC. RECESS MEETING At 12:13 p.m., Chairwoman Valles recessed the meeting to 1:30 p.m. in the Economic Development Agency Board Room. RECONVENE MEETING At 1:36 p.m., Vice Chairwoman Miller reconvened the adjourned regular meeting of the Community Development Commission. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Vice Chairwoman Miller; Commissioners Estrada, Lien, Arias, Schnetz, Devlin, Miller; Senior Assistant City Attorney Carlyle, City Clerk Clark, Economic Development Agency Executive Director Van Osdel. Absent: Commissioner Anderson. ECONOMIC DEVELOPMENT AGENCY BUDGET - FISCAL YEAR 1998/99 (Continued from August 3, 1998) (Rl) Barbara Lindseth, Agency Administrative Services Director, continued with a review of the capital outlay portion of the budget and answered questions regarding same. Commissioner Estrada reiterated that she would like to see the travel account increased by $15,000 to enable the Mayor and Executive Director to do as much traveling as possible to bring business back to San Bernardino. CHAIRWOMAN VALLES RETURNED At 2:02 p.m., Chairwoman Valles returned to the Commission meeting and took her place at the conference table. Commissioner Estrada made a motion, seconded by Commissioner Miller, that the Commission add $15,000 to Travel Account 6003 and $135,000 to Salaries Account 5010 to cover the cost of the Executive Director's salary and benefits. (Note: There was no vote taken.) It was the consensus of the Council that each part of the mot.ion should be voted on separately. Commissioner Estrada made a motion, seconded by Commissioner Arias, and unanimously carried, that the Community Development Commission approve the addition of $135,000 to Line Item 5010, Salaries-Full-Time, of the Agency budget for fiscal year 1998/99 for the purpose of paying the salary and benefits for the Executive Director. 7 8/11/1998 Commissioner Estrada made a motion, seconded by Commissioner Lien, and unanimously carried, that the Community Development Commission adopt the Economic Development Agency's budget for fiscal year 1998/99, as amended, with the exception of the Convention and Visitors Bureau (CVB) allocation; that the CVB allocation and the existing memorandum of understanding between the Agency and the CVB be referred to the Redevelopment Committee for review; and that the segment of the existing continuing resolution which addresses the CVB budget be continued. Commissioner Lien expressed concern that the Commission had not identified any specific goals and/or objectives. ADJOURNMENT At 2:36 p.m., the meeting was adjourned. regular meeting of the Mayor and Common Council Development Commission is scheduled for 8:00 a.m., 17, 1998, in the Council Chambers of City Hall, Street, San Bernardino, California. (R2) The next joint and Community Monday, August 300 North "D" RACHEL G. CLARK CITY CLERK By ~ laJ5d Deputy City Clerk No. of Items: 2 No. of Hours: 4 9 8/11/1998