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HomeMy WebLinkAbout06-21-2007 MinutesSan CITY OF SAN BERNARDINO 300 N. "D"Street San Bernardino, CA 92418 Website: www.sbcity.org Mayor Patrick J. Morris Council Members: Esther Estrada Dennis I Baxter Tobin Brinker Neil Derry Chas Kelley Rikke Van Johnson Wendy McCammack MINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING JUNE 21, 2007 ECONOMIC DEVELOPMENT AGENCY BOARDROOM 201 NORTH "E" STREET SAN BERNARDINO, CA This is the time and place designated for a joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino from the joint regular meeting of the Mayor and Common Council and Community Development Commission held at 1:30 p.m., Monday, June 18, 2007, 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 adjournment of said meeting held on Monday, June 18, 2007, 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 1:30 p.m., Tuesday, June 19, 2007, on the City Hall breezeway bulletin board. The joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino was called to order by Mayor/Chairman Morris at 4:41 p.m., Thursday, June 21, 2007, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. Roll Call Roll call was taken by City Clerk Clark with the following being present: Mayor/ Chairman Morris; Council Members/Commissioners Estrada, Baxter, Brinker, Derry, 06/21/2007 Kelley, Johnson, McCammack; City Attorney Penman, City Clerk Clark, City Manager Wilson. Absent: None. 1. Closed Session Pursuant to Government Code Section(s): A. Conference with legal counsel - existing litigation - pursuant to Government Code Section 54956.9(a). B. Conference with legal counsel - anticipated litigation - significant exposure to litigation - pursuant to subdivision (b) (1), (2), (3) (A-F) of Government Code Section 54956.9: one case. C. Conference with legal counsel - anticipated litigation - initiation of litigation - pursuant to subdivision (c) of Government Code Section 54956.9. D. Closed Session - personnel - pursuant to Government Code Section 54957. E. Closed session with Chief of Police on matters posing a threat to the security of public buildings or threat to the public's right of access to public services or public facilities - pursuant to Government Code Section 54957. F. Conference with labor negotiator - pursuant to Government Code Section 54957.6. G. Conference with real property negotiator - pursuant to Government Code Section 54956.8. 2. Budget deliberations - Fiscal Year 2007/08 - discuss and take possible action concerning proposed City budget The following individuals from Inland Congregations United for Change (ICUC) spoke regarding funding for programs and services for the City's youth: Ivan Aguayo, 1068 W. 10' Street, San Bernardino, CA; Rocio Ruiz, 1147 W. Mill Street, San Bernardino, CA; Marelyn Hernandez, 248 W. 16' Street, San Bernardino, CA; Cristina Ruiz, resident of the Third Ward, San Bernardino, CA; Jocelyn Sandoval, resident of the First Ward, San Bernardino, CA; Guadalupe Gonzalez, San Bernardino, CA; Yvette Aguayo, 1068 W. 10th Street, San Bernardino, CA; 2 06/21/2007 Teresa Orozco, 1156 W. Beltview Street, San Bernardino, CA; Blanca Ortega, resident of the Seventh Ward, San Bernardino, CA; Mireya Olguin, 3541 Sage, San Bernardino, CA. Mayor/Chairman Morris stated that they have begun to talk about a master plan for Parks and Recreation. They have engaged consultants in that process and Kevin Hawkins, the Director of Parks and Recreation, has already met with the focus groups to discuss the strategic assessment to be done and the recommendations to the Mayor and Council. The Mayor encouraged all youth to attend a series of workshops to be held on Saturday, July 14, at the Western Regional Little League Center from 9 a.m. to noon; Saturday, August 11, at Casa Ramona from 9 a.m. to noon; and Saturday, September 15, at the Perris Hill Senior Center from 9 a.m. to noon. The Mayor stated that several sister cities have gone beyond a master plan for parks and recreation. He stated that San Bernardino hasn't had one since the mid 90's, but there are cities who have created a master plan specifically for youth which would perhaps cover needs beyond those that may be identified in a parks and recreation strategic plan. He stated that as the Council moves through this process they may want to consider a master plan for Parks and Recreation as well as envision a master plan for youth services in the City. The Mayor stated that the City has been working on a Safe Summer for Youth Program. He stated that the Council was provided with a list of investments that began last summer and will continue with the help of ICUC youth, their advisors and others. Examples of this summer's investments include internships, free trips, a summer arts and music program, and free swimming lessons. Mayor Morris stated that there is a great desire for youth employment; however, that remains a challenge for the Mayor and Council in light of the current budget situation. He stated that he has reviewed his own budget in the Mayor's Office for opportunities to transfer resources. He noted that he had an item in his budget for a consulting contract on marketing the City that he never pursued and suggested that it be transferred to the Parks and Recreation Department to be used for employment opportunities. He stated that Mr. Penman has offered some internships in his office to two members of the youth community. The Mayor stated that he would like to challenge the Parks and Recreation Department with the obligation and opportunity to engage the business community to do exactly what Mrs. McCammack has done and that is to host a student intern in her business. Council Member/Commissioner Brinker suggested that a youth commission be established within the City and that they be tasked with the job of coming up with a plan for youth in preparation for next year's budget. 3 06/21/2007 Council Member/Commissioner Brinker made a motion, seconded by Council Member/Commissioner McCammack, that the Mayor and Common Council organize a youth commission for the City. Council Member/Commissioner McCammack removed her second. Council Member/Commissioner Brinker made a motion, seconded by Council Member/Commissioner Kelley, that the subject of creating a youth commission be referred to the Legislative Review Committee. The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. Council Member/Commissioner Brinker requested that the Council look at addressing the subject of public safety as part of the Measure Z and Operation Phoenix discussions. He stated that he would like the City to provide constant police patrols in its parks, particularly during the summer so that our children feel safe. Also, he stated that it is his belief that the parks would benefit from public art such as murals and that these murals could possibly be a deterrent to taggers. Mayor/Chairman Morris stated that there are some murals in La Placita Park that had been badly tagged and had to be repainted to remove the graffiti. He stated that Edward Perez, a professor and master muralist from Valley College, together with art teachers and children from five local high schools are working on a historical mural on the Union Pacific Bridge. Council Member/Commissioner Estrada stated that one of the purposes for redevelopment is job creation and there are funds that could be used to subsidize businesses for providing jobs and she suggested that perhaps the Council could consider that in their overall discussions on how to spend the $9.6 million. She stated that she didn't think it would be difficult to develop short term contracts with business people to hire these young people and have a portion of those salaries offset by this fund that is supposed to be creating jobs and helping clean up blight in the communities. Council Member/Commissioner Johnson stated that he believed there could be a correlation between the increase in crime in the City and the fact that the budgets for Parks and Recreation and the Library have been ignored for quite some time. Therefore, he suggested that some of that $9.6 million be used for Parks and Recreation. Council Member/Commissioner McCammack stated that there were approximately $304,000 worth of additional Code Compliance requests in terms of hiring additional officers, and she was wondering if they couldn't figure out a way to spend $304,000 even if it means spending that extra $300,000 that is 4 06/21/2007 considered discretionary in EDA to fund those Code Compliance requests. She stated that if they could get the business corridors cleaned up and looking and feeling safer, the kids would have some safe routes to go from one place to another. Ms. McCammack stated that there's about $392,000 in potential safety issues in this budget document. She stated that almost $200,000 is related to Parks and Recreation and making the community centers safer, cleaning them up, making them more beautiful, removing the gophers, sidewalk repairs, tree maintenance and SWAT training ammunition. She stated that they should figure out a way to fund this $400,000 and maybe some of it could be construed as potential Measure Z funding because they need to start chipping away at some of these things that are necessary and should not just be on someone's wish list. Mayor/Chairman Morris reminded the Council that they would be coming back to the table in the near future with proposals for expanding Operation Phoenix potentially into five focus areas with suppression, prevention and intervention strategies for each of those areas. He stated that as they expand Operation Phoenix, one of the strategies is to beef up the City's Code Enforcement teams and to particularly focus on the Arden Guthrie area and the area north of Sepulveda in the Fourth Ward. He stated that they would be coming forward with suggestions in terms of some substantial additional investments in that operation. Mayor/Chairman Morris stated that he hoped the Council would leave Measure Z monies in this budget intact until they see the articulation of strategies to attack the issues in these five areas because it's clear that what remains in Measure Z by itself is not going to be sufficient. They are not going to be able to do meaningful work in all five areas with those limited available dollars and it's available for a limited period of time —approximately one year —to do this job in terms of making this City safe through the articulation of the Operation Phoenix expansion programs so they have to be as smart and as focused as they can be. He stated that obviously some of those dollars will go towards prevention and intervention to include youth related programs as they have done in the Operation Phoenix neighborhood center on Waterman with programs that have been attended by more than 4,000 kids over the last nine months and has kept them off the streets in safe venues with great programs run by Parks and Recreation. He stated that they are on the right track in terms of how they move into the future on this budget, but he believed they should leave Measure Z resources intact for the purposes of decision making after they review the possible strategies on expanding Operation Phoenix. It was the consensus of the Council that they adopt a continuing resolution and that the City Manger be directed to schedule the next budget workshop. 5 06/21/2007 City Clerk Clark read the title of the following resolution into the record: RES. 2007-206 - Resolution of the Mayor and Common Council of the City of San Bernardino, California, authorizing the City of San Bernardino to establish 2007-2008 expenditures for the month of July, 2007 only, at one - twelfth the proposed levels contained in the preliminary detail budget for the 2007-2008 Fiscal Year, or as needed to pay the authorized costs incurred for the month of July, 2007 only, pending final approval of the 2007-2008 budget. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Baxter, that full reading of the resolution be waived; and that said resolution be adopted. The motion carried and Resolution No. 2007-206 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 3. Proposed Economic Development Agency Fiscal Year 2007/08 budget and amendments to Agency Personnel Policies and Procedures RES. CDC/2007-19 - Resolution of the Community Development Commission of the City of San Bernardino, California approving the Economic Development Agency's Budget with the exception of those portions of certain budget lines which are related to the Uptown Redevelopment Project Area for fiscal year 2007-08 with such amendments, changes and modifications as are specifically authorized by said Commission, with the exception of $9.6 million. (3A) RES. CDC/2007-20 - Resolution of the Community Development Commission of the City of San Bernardino, California, approving the Economic Development Agency's Budget for those portions of certain budget lines which are related to the Uptown Redevelopment Project Area for the fiscal year 2007-08 with such amendments, changes and modifications as are specifically authorized by said Commission, with the exception of $9.6 million. (3B) RES. CDC/2007-21 - Resolution of the Community Development Commission of the City of San Bernardino, California, approving amendments to Exhibits "A", "B-1", Section 6-A, Section 8-F, and Section 17-A; and addition of "C" Exhibits, job descriptions, of the Personnel Policies and Procedures for all employees of the City of San Bernardino Economic Development Agency. (3C) 6 06/2 t/2007 Maggie Pacheco, Economic Development Agency Executive Director, stated that the budget is presented to the Council in a four -page transmittal that outlines a $93 million budget for the 2007/2008 Fiscal Year. She stated that $93 million is dedicated primarily to expenditures that have been previously approved by this board. Ms. Pacheco stated that they outlined a number of programs and projects in their summary report and have proposed a reorganization along with some additional positions. Barbara Lindseth, Director of Administrative Services, distributed the following materials and provided an overview of the information contained therein: • "Economic Development Agency, City of San Bernardino, 2007-08 Fiscal Year Budget" (brown sheets); • "San Bernardino Economic Development Agency, Combined Tax Increment Fund Projections as of May 1, 2007" (white sheets); and • "Economic Development Agency, City of San Bernardino, Cash Flow Analysis, Low and Moderate Income Housing Fund for Fiscal Year 2007- 08, as of May 1, 2007" (yellow sheets). Ms. Lindseth stated that in order to make the budget balance, $9.6 million must be transferred in from the carry-over fund balance to fund the following projects: University Parkway interchange ($3 million); La Placita ($1.5 million); California Theatre ($500,000); 3-level parking structure ($1 million); and 5-level parking structure seismic retrofit ($3 million). Council Member/Commissioner Brinker suggested that if they would bond even a small portion of that $9.6 million, they could get some of the projects done now and have some additional money left over for other things that were not included on the list. Council Member/Commissioner Estrada recommended that they approve the budget with the exception of the $9.6 million, and that they come back and deliberate on that issue at another time. Maggie Pacheco noted that the RDA Committee also discussed the fact that they need to have a workshop to specifically discuss the bonding capabilities of the Agency and the distribution of the proceeds. Council Member/Commissioner Kelley asked what other infrastructure improvements the money could be used for. Ms. Pacheco stated that the money could be used for the reconstruction of roads, curbs, gutters and sidewalks. She stated that they could use tax increment for capital facilities such as community centers and parks and recreation, but not for 7 06/21/2007 government center purposes. Ms. Pacheco stated that they would take a look at the CIP because she knew there were a whole gamut of programs and projects that are anticipated to be funded. City Manager Wilson stated that they are limited by the lack of dollars for CIP projects, and clearly the need is far in excess of the available resources. He stated that he thought the suggestion of using the money for this purpose was a good one. Council Member/Commissioner McCammack requested justification for the increase in personnel. Council Member/Commissioner Estrada stated that the fact that there's an additional $1 million for staffing was thoroughly discussed at the committee level on a position -by -position basis. Ms. Estrada stated that the IVDA does not have the redevelopment staff so they contract with EDA to be able to deliver some of those services. She stated that during their discussions and deliberations they discussed the need to have their own planners and an engineer within EDA because many projects get jammed up in the Development Services Department. She stated that the only way to keep projects moving through the system would be to have their own staff take over these projects. Ms. Estrada stated that those matters had been discussed and were included in this budget and thus the additional $1 million expenditure, which she believes will pay for itself. Ms. Pacheco stated that in the budget the Agency is proposing to add five new positions that will help the City. She stated that two planners and one engineer will be hired in Development Services, and it is intended for those positions to essentially be shared by the Agency and the City and they will prioritize and work on Agency projects as development opportunities come into the Agency. The planners would work on the Agency's projects first, then they could work on other issues related to planning under the direction of Ms. Ross. Ms. Pacheco stated that they have also budgeted for a GIS person because they rely on Ruth Parish's Department to do their graphics and maps. She stated that it is a two - man shop and they desperately need help. Ms. Pacheco stated that they are also proposing a Housing Director because that position has not been filled since she vacated that position and they need someone to work on helping them develop comprehensive strategies and policies related to housing programs and projects. She stated that the Human Resource Analyst position would be something that would also possibly be shared with the City and currently they do not have a Human Resource individual —that is handled by the Finance Department —so all of their benefit and payroll issues and anything related to Human Resources is handled by Finance. They have also budgeted an Enterprise Zone Manager and they are going to assume implementation of that zone. She added that this is a very large zone —something like 13,000 acres. 8 06/21 /2007 Ms. Pacheco stated that the City does have a conditional approval on that zone, but there are a number of incentives that would be afforded to the business community and there will be a lot of PR/Marketing that must be done to get the word out there about the program. She stated that they would like to hire someone that has some of that expertise to hopefully jump-start that program. Ms. Pacheco stated that they have a Real Property Manager, and they are implementing a salary change that had previously been approved by this body. She stated that they have been without a Real Estate Manager for quite some time now and all of that is currently being handled by herself, her project managers, and Don Gee, so they would like to fill that position. Council Member/Commissioner Brinker stated that the idea of getting a Director for Housing is very important. He stated that all the data suggests that the City is on the verge of a major boom, not only in terms of housing, but also in terms of jobs, and we need to have somebody to manage that. He stated that what he likes about this model of having these shared resources between EDA and the City is that it would allow them to hire people a little more quickly and it would give them a better connection between the two agencies. One of the discussions they've had in the past is how the agencies work together and he believes this model will help them work together more effectively. Council Member/Commissioner McCammack stated that she was concerned that the proposed employee benefits do not mirror City Hall staff benefits. City Manager Wilson stated that they have talked about the fact that the Agency benefit package is different than the City's and in some areas is better than the City's, and one of the concerns they have to discuss is the fact that they may have City employees applying for these jobs. Ms. Pacheco stated that their benefits are slightly better. She stated that PERS was a big thing now that the City was going to go to 2.7 percent at 55 so she felt that would equal the 3 percent at 60. Regarding some of the other perks such as Deferred Comp and Life Insurance, they actually looked at the City's benefits and some of these categories are currently afforded to City staff in the management level. She stated that they looked at whether they could compete with other Redevelopment agencies. Ms. McCammack stated that she was concerned because there are proposed sick leave payoffs that are 100 percent with no time limit, and she wondered how the Agency could afford that. She stated that she was concerned that this would cause some dilemma between City employees and EDA employees and they certainly do not want to create another obstacle to slow things down or cause animosity between employees. Council Member/Commissioner Estrada stated that the Economic Development Agency is not just another City department —it is supposed to be the 9 06/21/2007 entrepreneurial arm of the City, and as such it cannot function like the Parks Department —it's just not meant to be that way. She stated that it is supposed to create jobs and create more sales tax, etc., which is very different. She stated that it is similar to the City being competitive with other cities in its safety salaries, in that every time they talk about their safety units, it's written into the Charter. At this level of Economic Development this is what they have to do to remain competitive out there in the market. When they look at the salaries they try to be as comparable as they can be with staff as other cities are with their RDA or Economic Development staff. Ms. Estrada stated that there's a big difference between a City Civil Service employee and an EDA "at will" employee. She stated that the Commission needs to look at the function of EDA very differently from the function of the City. Council Member/Commissioner Derry stated that if these positions open it's going to be our current planning staff and engineers who are going to apply for these positions first, so they are competing against themselves to a certain extent. To avoid that, Mr. Derry asked if it would make sense if they could show an impact to the Planning Department or to the Engineering Department of the Economic Development Agency's activities. In other words, if the activities of the department are putting greater stress and strain on City departments, wouldn't they be able to do what they've done with the Council budget and directly fund those positions through EDA. City Manager Wilson stated that the need to have these positions on the third floor was discussed by the Committee at length because, from his perspective, the added value was in having someone across the counter process Agency plans as a priority as opposed to having someone request that it be made a priority. Mayor Morris stated that he didn't want to have blurred lines of authority and requested that a process be developed to avoid the problem of who reports to whom. Mr. Wilson stated that these positions will be City employees. They will be housed in the Planning Department as a planner and an engineer under the director of Valerie Ross handling Agency projects as top priority. Ms. Estrada stated that they want to make sure that Commission projects are not prolonged because there is so much work to do in Development Services that other projects in the pipeline are being put ahead of these projects. The whole point of having these individuals there is to be able to help move the Economic Development projects along. Council Member/Commissioner Johnson stated that one of their desires was to structure this to make the Economic Development Agency work at optimum efficiency. He stated that they want to make sure the structure will be able to accommodate the growth that is coming to this area. 10 06/21/2007 Council Member/Commissioner Kelley stated that this proposal is creative and he believes it is the right approach. He added that if they are concerned about losing employees from one department to another and are concerned about benefits, then maybe they ought to take a look at how they're structuring the third floor benefits and how they are paying those planners in order to retain them. Council Member/Commissioner McCammack stated that they are looking at raising salaries in the Planning Department so they are up to par with other cities and agencies, especially if EDA is getting its projects processed quicker than a person who paid for fast track service through the third floor. She stated that she wants to make sure that doesn't happen and that someone will be managing that a little better than they have in the past. Council Member/Commissioner Estrada made a motion, seconded by Council Member/Commissioner Kelley, that the Mayor and Common Council approve the EDA budget less the $9.6 million expenditure. (Note: The vote was taken following further discussion.) Council Member/Commissioner McCammack indicated that she needed to abstain from every line item that referred to the Uptown Redevelopment Project Area. Council Member/Commissioner Derry stated that they have had a lot of discussion about potential projects and he knew they were not going to be spending the $9.6 million at this time. He asked Ms. Pacheco if they could use tax increment for payment of leases for satellite public safety facilities. Ms. Pacheco answered in the affirmative. Mr. Derry stated that there have been discussions regarding inadequate parking and future expansion of the Police Department. He stated that the Stater Bros. building on 401h Street is for lease at about one-half or one-third of the market rate and it was originally offered to the City as a police station. Council Member/Commissioner Derry made a substitute motion that language be added to the original motion to include up to $300,000 for a potential lease of the Stater Bros. building for the purpose of a police station. (Note: The motion died for lack of a second.) Council Member/Commissioner Estrada stated that no one has come forward with a plan that convinces her that this should be done at this point in time. Council Member/Commissioner Brinker stated that he was supportive of the idea of having a police substation, but he believes there needs to be a process and a full debate on the subject. 11 06/21/2007 Council Member/Commissioner McCammack stated that they have received documents every year for four out of five years from the Police Department relative to their five-year strategic plan and their needs. She stated that she feels that the north end has been underserved in terms of police presence far too long. She stated that she has studied some of the areas in both the City's and the EDA's budgets and found about $140,000 that is being spent on lease space elsewhere in the City that they are paying far more dollars per square foot than they could at this particular location, so they may end up even being in a cost savings situation if they were to at least discuss this prospect. Mayor/Chairman Morris stated that this property is not available for the purposes intended by Mr. Derry and it is off the market as far as Mr. Brown is concerned. He stated that it is a bad idea to articulate a specific amount of money from the reserve fund for a specific purpose. He stated that the idea of a substation may or may not have merit and that should be discussed with an eye to the future when and if they invest in such when the need arises, but they should not reserve a specific amount of money in this budget from that particular available EDA resource. Council Member/Commissioner Johnson stated that that area probably is in need of a substation. He stated that when they have their workshop to discuss the $9.6 million they could discuss the possibility of a substation at that time. Ms. McCammack stated that there still is a "For Lease" sign on that building and it has been there for six years. She suggested that there were some other real opportunities for portions of that building including some Operation Phoenix -type functions in maybe 1,000 square feet of that building, and there were also some other functions that could be handled in there such as intern training. She stated that there is a whole host of things that could be accomplished in that building because there is no such facility in the north end. Ms. McCammack stated that if they were not going to at least lay it on the table at this point then she would suggest that they start delving a lot more deeply into some of the line items that they have no justification for, and if that's the case, she is not prepared to approve the EDA budget in total. She stated they do not have justification for Casa Ramona, Operation Phoenix, $1 HUD Program Carryover, Meadowbrook Fourplex Acquisition, GFC Downpayment Lynwood. Mayor/Chairman Morris recommended that the motion that should be made and passed is that they reserve the $9.6 million for further deliberation and discussion without specifying the purposes intended. Council Member/Commissioner Estrada made a motion, seconded by Council Member/Commissioner Baxter, that full reading of resolutions 3A, 3B, and 3C be waived; and that said resolutions be adopted, with the exception of $9.6 million. (Note: No vote was taken at this time.) 12 06/21/2007 Council Member/Commissioner Derry made a substitute motion, seconded by Council Member/Commissioner Kelley, that the Mayor and Common Council include up to $3,000 for a potential lease of the Stater Bros. building on 40' Street. (Note: The vote was taken following further discussion.) City Clerk Clark read Resolutions 3A, 3B, and 3C into the record and noted for the record that Resolution 3B does specifically impact the Uptown Redevelopment Project. Council Member/Commissioner McCammack suggested an amendment to the substitute motion to exclude the Uptown Redevelopment area. Council Member/Commissioner Derry accepted Ms. McCammack's amendment. The motion made by Council Member/Commissioner Derry as amended by Council Member/Commissioner McCammack, seconded by Council Member/ Commissioner Kelley, failed by the following vote: Ayes: Council Members/ Commissioners Brinker, Derry, Kelley, McCammack. Nays: Council Members/ Commissioners Estrada, Baxter, Johnson. Absent: None. (Note: The motion was vetoed by Mayor Morris.) Council Member/Commissioner Estrada made a motion, seconded by Council Member/Commissioner Baxter, that full reading of Resolution 3A be waived; and that said resolution be adopted, with the exception of $9.6 million. The motion carried and Community Development Commission Resolution No. CDC/2007-19 was adopted by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Kelley, Johnson. Nays: Council Members/Commissioners Derry, McCammack. Absent: None. Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Baxter, that full reading of resolution 3B be waived; and that said resolution be adopted, with the exception of $9.6 million. The motion carried and Community Development Commission Resolution No. CDC/2007-20 was adopted by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson. Nays: None. Abstentions: Council Member/Commissioner McCammack. Absent: None. Council Member/Commissioner Estrada made a motion, seconded by Council Member/Commissioner Johnson, that full reading of resolution 3C be waived; and that said resolution be adopted. 13 06/21/2007 The motion carried and Community Development Commission Resolution No. CDC/2007-21 was adopted by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 4. Discuss and take possible action concerning public opinion survey results and possible November 2007 ballot measure to modernize the City's Utility User's Tax ordinance Mayor/Chairman Morris stated that Fairbank, Maslin, Maullin & Associates was hired to assist the City in surveying public opinion on this subject. He introduced Mr. John Fairbank, the principal partner of that firm, to report on the polling data. John Fairbank of Fairbank, Maslin, Maullin & Associates, stated that the interviews were conducted by telephone between June 7-12, 2007, to 500 people with histories of voting in the City's Municipal Election in November 2007. Mr. Fairbank stated that 85 percent of those polled rated the issue of crime, gangs and drugs as extremely, very serious; whereas, the amount paid in City utility taxes was ranked at the bottom of the list. Mr. Fairbank stated that they worked with legal counsel to develop very specific language that would be appropriate for the ballot. He discussed the different ballot language options that were provided to the voters and the percentages of support vs. opposition. He stated that City of San Bernardino voters were more interested in not increasing utility tax and using that money to maintain funding for services —public safety being at the top of the list. Mr. Fairbank stated that they are finding in many cities that when voters learn that there are going to be money cuts from the budget relative to public safety, they clearly do not want to increase the utility tax —there is slightly more support for continuing the utility tax at its current rate as opposed to reducing it. City Attorney Penman stated that the firm initially worked with special outside counsel in developing the ballot language —it was not the City Attorney's Office. Council Member/Commissioner Brinker asked what was the threshold of this measure passing —what level had to be met. Mr. Fairbank stated that 50 percent plus 1 is needed. He stated that in order to pass any finance measure he suggested the City wage some kind of public education or campaign to help get it passed. Council Member/Commissioner Brinker asked if this was something they had to undertake because of changes in the law. 14 06/21/2007 Mayor/Chairman Morris answered in the affirmative. He stated that they were at risk of losing this source of revenue if they don't modernize the ordinance language. City Manager Wilson stated that a number of cities have gone through this election process so far —probably 10 or 15 throughout the State —and in almost every case the tax was lowered a little bit and the measure passed successfully. Council Member/Commissioner McCammack asked the City Manager to provide some computations to the City Council in regard to the loss of revenue should there be a decision by this body to reduce the tax to 7.75 percent. Council Member/Commissioner Derry stated that this survey was done prior to the summer months when people start getting large electric bills and they really start paying attention to that 7.83 percent. He stated that if we have a really hot summer it may raise the profile of the tax. Mayor/Chairman Morris stated that this was just an informational session today to start the Council down the road toward making a decision about the ballot measure and the wording of that measure and the arguments in support thereof. He stated that they have time to deliberate on this. He asked that the City Council be provided with a copy of the survey results. City Manager Wilson stated that he would provide the Council with the survey results and also the fiscal impact of a reduction in the utility tax from .1 to .15 percent. City Clerk Clark pointed out that if the Council decides to place the measure on the ballot she recommended that action be taken no later than the second meeting in July in order to meet the County's deadlines for arguments, etc. It was the consensus of the Council that the matter be agendized for the next regularly scheduled Council meeting to be held on July 16, 2007. NB 1. Reconsideration of Eminent Domain Program for the Uptown Redevelopment Project Area — Agenda Item No. 9B at the June 18, 2007 Council meeting ORD. MC-1250 — Ordinance of the City of San Bernardino approving and adopting an Eminent Domain Program in compliance with the California Community Redevelopment Law for Uptown Redevelopment Project Area. FINAL READING Mayor/Chairman Morris asked the Council to make a motion to reconsider this item which was on the consent calendar at the June 18, 2007 Council meeting. He stated that this item had been adopted unanimously; however, Councilwoman 15 06/21/2007 McCammack unintentionally voted in favor of the ordinance rather than abstaining due to a conflict. Council Member/Commissioner McCammack indicated that she needed to change her vote to an abstention on Agenda Item No. 9B due to the fact that her business is located within 500 feet of the subject area. She left the Council Chambers and returned after the vote was taken. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Derry, that said ordinance be readopted and that Council Member/Commissioner McCammack's declaration of conflict be acknowledged. The motion carried and Ordinance No. MC-1250 was readopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson. Nays: None. Abstentions: Council Member/Commissioner McCammack. Absent: None. NB2. RES. CDC/2007-18 — Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute a Construction Contract by and between the Agency and JM Builders, Inc. for Improvements to the California Theatre of the Performing Arts (Central City North Redevelopment Project Area). (Continued from June 18, 2007) Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Baxter, that said resolution be adopted. The motion carried and Resolution No. CDC/2007-18 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. N133. Request from Ronald McDonald House for waiver of Transient Lodging Tax (TLT) fees Mayor/Chairman Morris stated that an issue had been brought to the City Clerk's attention by the Ronald McDonald House in Loma Linda regarding concerns they have about having to relocate all the families out of that home to local hotels — families whose children are in the hospital —because they are having to do some major repair work on the house. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Derry, that the matter arose subsequent to the posting of the agenda. 16 06/21/2007 The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. City Clerk Clark stated that she had received a phone call from Mrs. Feldmeier who is the Executive Director of the Ronald McDonald House in Loma Linda. She explained that the Ronald McDonald House is undergoing major renovations, and as a result they are going to have to relocate 21 families one week from today. She stated that they have negotiated with the Hilton Hotel and the hotel has agreed to provide five complimentary rooms for a period of 36 nights, which leaves 16 families that the Hilton has graciously given a discount rate of $50. City Clerk Clark stated that the Ronald McDonald House wants to know if the City could waive the Transient Lodging Tax (TLT), which would save them slightly under $3,000 for that period of time. The Ronald McDonald House usually charges the families $10 per day, but most times these families arrive with the clothes on their back with no food and/or expense money. City Attorney Penman stated that Mrs. Clark had contacted his office to see if there was an exemption, and there is one exemption that may apply. He referred to Section 3.55.035 A(3) of the Municipal Code which states: "Room rental payment made to any hospital, medical clinic, convalescent home or home for aged people." Mr. Penman stated that he didn't know if the Ronald McDonald House could work something out with Loma Linda University Hospital providing that the people could pay the amount to the hospital for the room who could then pay the Hilton and that would qualify as an exemption. He stated that the alternative is that the Council could decide whether they want to rebate the money to the Hilton Hotel. Mayor/Chairman Morris suggested that they choose the more simplified alternative and rebate the amount of the tax to the Hilton Hotel. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Johnson, that that the Mayor and Common Council rebate the TLT fees paid for 16 hotel rooms to the Hilton Hotel. (Note: The vote was taken following further discussion.) City Attorney Penman advised that if the families are there for more than 30 days, the tax would not apply. City Clerk Clark stated that she understood that the families would only be there for 36 days. City Attorney Penman stated that they should verify whether the tax is going to apply based on how long the families are going to be there. 17 06/21/2007 Mayor/Chairman Morris suggested that the motion be worded that if the stay is less than 30 days, then the City will rebate the TLT tax to the Hilton Hotel. Council Member/Commissioner Kelley amended his original motion, seconded by Council Member/Commissioner Johnson, that the Mayor and Common Council rebate the TLT fees paid for 16 hotel rooms to the Hilton Hotel if the stay for the families from the Ronald McDonald House is less than 30 days. The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 5. Adjournment At 8:31 p.m., the meeting adjourned to 6:30 p.m., Sunday, June 24, 2007, at the California Theater at 562 W. Fourth Street; and 5:30 p.m., Monday, June 25, 2007, at the County Government Center Rotunda downtown, 385 North Arrowhead Avenue, San Bernardino, California, for a special Urban Land Institute "Welcome" Reception. The next joint regular meeting is scheduled for 1:30 p.m., Monday, July 2, 2007, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. No. of Items: 8 No. of Hours: 4 RACHEL G. CLARK City Clerk VO By Linda Sutherland Deputy City Clerk 18 06/21/2007