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HomeMy WebLinkAbout07-02-2007 MinutesMayor Patrick J. Morris CITY OF SAN BERNARDINO Council Members: 300 N. `D "Street Esther Estrada Dennis J. Baxter San Bernardino, CA 92418 robin Brinker Website: www.sbcity.org Neil Derry Chas Kelley Wknar Rikke Van Johnson �M Wendy McCammack MiNi ITES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT REGULAR MEETING JULY 2, 2007 COUNCIL CHAMBERS The joint 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 1:33 p.m., Monday, July 2, 2007, in the Council Chambers of City Hall, 300 North "D" 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, 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): Frank Ingram, et al. v. City of San Bernardino et al. - United States District Court Case No. EDCV 05-00925 VAP (SGLx); Manta Management v. City of San Bernardino - California Supreme Court Docket No. S144492. 07/02/2007 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: Inland Communities Corp. v. City of San Bernardino, et al. (Paradise Hills) Claim of Maria Laura Martinez 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. City Attorney Penman announced that the following additional cases would be discussed in closed session: Under Agenda Item No. IA, Existing litigation: Jamie Johnson v. City of San Bernardino, Wackenhut, et al. - United States District Court Case No. EDCV 07-00028; J.R. v. City of San Bernardino, et al. - United States District Court Case No. EDCV 05-1045; and Emelio S. Flores, et al. v. City of Highland, City of San Bernardino, et al. - San Bernardino Superior Court Case No. CIVSS 700464. Under Agenda Item No. 1B, Significant exposure to litigation: Claim of Garrett Warren One additional matter not on agenda Agenda Item No. 45 2 07/02/2007 Reading of Resolutions & Ordinances Deputy City Clerk Hartzel read into the record the titles of all the resolutions and ordinances on the regular agenda of the Mayor and Common Council and Community Development Commission. Invocation/Pledge of Allegiance The invocation was given by Pastor Anthony Fox of True Vine Ministries, followed by the pledge of allegiance, led by Council Member Wendy McCammack. 2. Appointments — Mobile Home Board — Mayor Morris Sandra Kurkoske — Park Owners' Representative Steven Oquendo — Member at Large Council Member/Commissioner Johnson made a motion, seconded by Council Member/Commissioner Estrada, that the appointments of Sandra Kurkoske and Steven Oauendo to the Mobile Home Board, as requested by Mayor Morris, be approved. The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 3. Proclamations & Presentations Mayor/Chairman Morris read into the record and expressed his support for a resolution recently adopted by the County of San Bernardino regarding California Children's Outdoor Bill of Rights. He was joined by Kevin Hawkins, Director of Parks, Recreation and Community Services. 4. Announcements Announcements were made by the Mayor, members of the Common Council, elected officials, and a representative from the Chamber of Commerce regarding various civic, community, and chamber events and activities. 5. Waive Full Reading of Resolutions & Ordinances Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that full reading of the resolutions and ordinances on the regular agenda of the Mayor and Common Council and Community Development Commission, be waived. 3 07/02/2007 Gol 7 The motion Commission McCammack. Commissioner carried by t Estrada, Nays: None. Council Minutes he following vote: Baxter, Brinker Absent: None. Ayes: Council Members/ Derry, Kelley, Johnson, Council Member/Commissioner Kelley stated that he had spoken to the City Clerk regarding modification of the minutes of April 16, 2007; therefore, he was recommending that the minutes of May 7 and June 7 be approved and the minutes of April 16 be continued for two weeks. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Johnson that the minutes of the May 7, 2007 and June 7, 2007 meeting(s) of the Mayor and Common Council/Community Development Commission of the City of San Bernardino be approved as submitted in typewritten form; and that the minutes of April 16, 2007 be amended and continued to the Council/Commission meeting of July 16, 2007. The motion Commission McCammack. Commissioner carried by t Estrada, Nays: None. Claims & Payroll he following vote: Baxter, Brinker, Absent: None. Ayes: Council Members/ Derry, Kelley, Johnson, Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that the claims and payroll and the authorization to issue warrants as listed in the memorandum dated June 20, 2007, from Barbara Pachon, Director of Finance, be approved. The motion Commission McCammack. carried by t rs Estrada, Nays: None. 8. Personnel Actions he following vote: Baxter, Brinker, Absent: None. Ayes: Council Members/ Derry, Kelley, Johnson, Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that the personnel actions, as submitted by the Chief Examiner, dated June 29, 2007, in accordance with Civil Service rules and Personnel policies adopted by the Mayor and Common Council of the City of San Bernardino, be approved and ratified. The motion Commissioner McCammack. carried by t s Estrada, Nays: None he following vote: Baxter, Brinker, Absent: None. Ayes: Council Members/ Derry, Kelley, Johnson, 4 07/02/2007 9. RES. 2007-207 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City Manager to execute an Animal Housing Services Agreement by and between the City of San Bernardino and the City of Grand Terrace from July 1, 2007 through June 30, 2010. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-207 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 10. Item Deleted 11. Item Deleted 12. RES. 2007-208 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing an Agreement with the City of San Bernardino and Western Regional Little League Baseball for financial assistance from the Civic and Promotion Fund for FY 2007/08. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted; that direct funding in the amount of $5,000 from the FY 2007/08 Civic and Promotion fund be approved; that indirect funding in the amount of $38,396 be transferred from the FY 2007/08 Civic and Promotion fund to various City departmental accounts as listed in the staff report from Fred Wilson, dated June 7, 2007; and that a waiver of fees and use of City personnel and equipment be authorized in the conduct of the 2007 tournament season. The motion carried and Resolution No. 2007-208 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None, 13. Item Deleted 14. ORD. MC-1251 - An Ordinance of the City of San Bernardino adding Section 19.22.080(7) and amending Section 19.22.150 of the San Bernardino Municipal Code (Development Code) related to signage requirements for the San Bernardino International Airport and Alliance California Specific Plan Area. FINAL READING Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said ordinance be adopted. 5 07/02/2007 Ordinance No. MC-1251 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 15. RES. 2007-224 - Resolution of the Mayor and Common Council of the City of San Bernardino awarding a contract to Grand Pacific Contractors, Inc. for construction of ADA access ramps and sidewalks at various locations (Phase VII) - 2005/06 (SS-B), per Project Plan No. 11501. Discussion ensued regarding how staff had determined the locations for these improvements. Several of the Council members had specific locations in their wards that they thought should have been on the list; however, they had not been included. The Council members questioned how they would go about getting their projects on the list. Valerie Ross, Director of Development Services, advised that they get numerous requests regarding missing sidewalks and ramps, and they try to prioritize them so the improvements are done throughout the city. She indicated that they would soon be doing the Capital Improvement Program (CIP) for 2008, and the Council members could add those locations in their wards that they consider top priority. Council Member/Commissioner McCammack indicated that the City was under a federal mandate to spend a certain amount of money per year, and this project was approximately $165,000 short of that mandate. She stated that she wanted to make sure that the City is spending the money it is mandated to spend on ADA ramps throughout the city. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Derry, that said resolution be adopted. Resolution No. 2007-224 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 16. RES. 2007-209 - Resolution of the City of San Bernardino preliminarily determining that the public convenience and necessity require the formation of a Landscape Maintenance Assessment District located in the Cajon Boulevard and University Parkway area without compliance with the Special Assessment Investigation, Limitation and Majority Protest Act of 1931; declaring its intention to proceed to order work within the district, to be known as Assessment District No. 1057; preliminarily approving the Engineer's Report and giving notice of a public hearing. 6 07/02/2007 Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that the Director of Development Services and the City Clerk be authorized to proceed under SBMC 12.90 with the establishment of a Landscape Maintenance Assessment District in the University Parkway and Cajon Boulevard Area (Parcel Map No. 17375), to be known as Assessment District No. 1057; and that said resolution be adopted. The motion carried and Resolution No. 2007-209 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 17. RES. 2007-210 - Resolution of the City of San Bernardino declaring its intention to order the vacation of an east -west alley, northerly of Little League Drive and east of Magnolia Avenue. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-210 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 18. RES. 2007-211 - A Resolution of the Mayor and Common Council of the City of San Bernardino declaring its intention to authorize the annexation of territory (Annexation No. 2) to Community Facilities District No. 1033, for Tentative Parcel Map No. 17052 located on Industrial Parkway between Cable Creek and Devil's Creek Flood Control Channels and adopting an annexation map showing the territory of Annexation No. 2. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that the Director of Development Services and the City Clerk be authorized to proceed under Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, as amended, with Community Facilities District No. 1033 Annexation No. 2, Tentative Parcel Map No. 17052 (Subdivision No. 04-35) and Development Permit II No. 04-54, located on Industrial Parkway between Cable Creek and Devil's Creek Flood Control Channels; and that said resolution be adopted. The motion carried and Resolution No. 2007-211 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 7 07/02/2007 19. RES. 2007-212 - Resolution of the City of San Bernardino authorizing an additional funding allocation to Hall & Foreman, Inc. and AEI-CASC Engineering, Inc. D.B.A. AEI-CASC Consulting for on -call plan review services. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-212 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 20. RES. 2007-213 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing execution of a Reimbursement Agreement with Opus West Construction Corporation for traffic signal, interconnect, and bus stop improvements at Hospitality Lane, Carnegie Drive and Tippecanoe Avenue. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-213 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 21. Set Capital Improvement Program (CIP) Workshop - Monday, July 16, 2007 at 5:00 p.m. - Economic Development Agency Boardroom - review the 5-Year Capital Improvement Program - Fiscal Years 2007/08 - 2011/12 Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that a Capital Improvement Program (CIP) Workshop be set for Monday, July 16, 2007, at 5:00 p.m. in the Economic Development Agency Boardroom to review the 5-Year Capital Improvement Program - Fiscal Years 2007/08 - 2011/12. The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 22. RES. 2007-214 - Resolution of the Mayor and Common Council of San Bernardino authorizing the City Manager to execute an Amendment to the Consultant Services Agreement with URS Corporation dba URS Corporation Americas, pursuant to Municipal Code Section 3.04.01OB.3, to provide seismic hazard assessment services for San Bernardino City Hall. 8 07/02/2007 Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-214 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 23. RES. 2007-231 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of an Agreement with and issuance of a purchase order to ACH Mechanical Contractors, Inc. for the replacement of the HVAC system at Galaxy Gymnasium. It was noted that 11 bid packets were sent out, however, only three companies had responded. Council Member/Commissioner McCammack requested that the City Manager contact a few of the more reputable local contractors to determine why they did not submit a bid on this project. Later in the meeting, Tony Frossard, Project Manager in Facilities Management, reported to the Council that he had conducted a telephone survey of some of the local contractors. As background, he explained that the City originally bid this project in June 2006, and rejected all bids in October 2006. They re -bid the job May 29, 2007. He explained that they had originally rejected all bids because they had a good low bid; however, that company went bankrupt before they actually started the project. The next bid was considerably higher, and staff did not feel that it was a fair bid. He stated that he had spoken with Davidson Air Conditioning, who indicated that they had bid the job before; however, they didn't want to go through the bidding process again. He also spoke with someone at Arrowhead Mechanical, who stated that timing, and the fact that when he was on the job walk he didn't think he could compete with some of the other vendors, led him to decide not to bid the project. Mr. Frossard stated that everyone else he had called was gone for the day. Council Member/Commissioner McCammack stated that the process for completing a bid for any government agency is huge, and for the City to have rejected all bids after those vendors did all that work, and then ask them to come back and do it all over again, was really a hurdle. She stated that she felt it had been an unfair process and wondered if it was possible to go back and look at the bids that were bid previously to see how they compared with the bids they had now. 9 07/02/2007 Mr. Frossard was uncertain, but stated that he believed they were considerably more —that the next low bid was $174,000. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Estrada, that said resolution be adopted. Resolution No. 2007-231 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson. Nays: Council Member/Commissioner McCammack. Absent: None. 24. RES. 2007-225 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City of San Bernardino Fire Department to extend the Agreement with Advanced Data Processing, Inc to provide billing services for EMS and Paramedic Membership Program Fees from July 1, 2007 through June 30, 2008. Council Member/Commissioner McCammack advised that in discussions with Fire Chief Conrad he had indicated that it costs more to maintain the billing program than the City actually receives from the program. She indicated that the Chief was looking for a way to fix this situation; therefore, she was worried about moving forward with this agreement because once an agreement has been signed, nobody seems to want to rescind it. She asked the Chief how quickly he might be able to work on this. Chief Conrad noted that the City does have a positive flow of revenue into the City from this program; however, the collection rate is quite low after the City pays the $17.50 for every bill that ADPI sends out. He stated that he was looking at various ways to collect these bills —one being our own process here within the City. The other idea was to work with AMR and have them include the City's fee on their bill; however, AMR is in the process of setting up a new financial system so they are currently not interested. He stated that right now they were just asking to extend the program as it is, while staff looks at some of these other options. In response to comments regarding misuse of the program, he pointed out that one of the things being considered for possible Council approval is to only levy a fee on those individuals who are actually transported by ambulance, which would indicate a serious medical condition. He added that the real issue is not who we bill, but how much is collected —we have only a 30 percent collection rate. Council Member/Commissioner Kelley noted that in the past the Council did exempt senior citizens and low income families; however, it seems unfair to bill those stuck in the middle (the 30 percent), who are basically paying for others to get a free ride. 10 07/02/2007 Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Baxter, that said resolution be adopted. Resolution No. 2007-225 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Johnson, McCammack. Nays: Council Member/Commissioner Kelley. Absent: None. 25. RES. 2007-215 - Resolution of the Mayor and Common Council of the City of San Bernardino approving an amendment to Resolution No. 2004-82, which is a side letter to Resolution No. 1999-154, for full-time, regular, active Fire Safety Employees. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted; that the Mayor and Common Council approve six (6) firefighter P-1 positions, to begin employment on May 1, 2008, ($5,002-$6,337/mo.); that the Human Resources Department be authorized to update Resolution No. 6429, Section Three, to reflect this action; and that the Director of Finance be authorized to amend the FY 2007/08 Fire Department budget and transfer $180,000 in salary savings (Account No. 001-202-50XX - Salaries & Benefits) to Fire Department Station Maintenance (Account No. 001-202-5507 - Facilities Services). The motion carried and Resolution No. 2007-215 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 26. Item Deleted 27, Item Deleted 28. RES. 2007-216 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the Purchasing Manager to award a purchase order for maintenance for Police Document Imaging System workflow software and scanning station hardware/software with Avrio Corporation of Glendale, CA. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-216 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 11 07/02/2007 29. RES. 2007-217 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the Purchasing Manager to award a purchase order for Police vehicle safety lighting and siren equipment with Federal Signal Corp. of University Park, IL. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-217 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 30. RES. 2007-218 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the Purchasing Manager to award an annual purchase order and Service Agreement for the City's 800 MHz voice/data backbone, MDC maintenance, dispatch console maintenance, and user equipment maintenance with the County of San Bernardino's 800 MHz Group. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-218 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 31. RES. 2007-219 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the Purchasing Manager to award a purchase order for maintenance services from Tiburon Inc. of Pleasanton, California. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-219 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 12 07/02/2007 32. RES. 2007-226 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City Manager to execute Amendment No. 17 to the Agreement between the City and Casa Ramona, Inc. relating to the operation of a drop -in center located at 1524 West 71h Street, San Bernardino, California, to extend the term of the Agreement for an additional one year period and ratifying all action taken between July 1, 2007 and the date that the Resolution is executed. Note: Agenda Item Nos. 32, 33, and 34 were considered simultaneously. Council Member/Commissioner Estrada stated that she would abstain on this item because Casa Ramona is her employer. She left the Council Chambers and returned after the vote was taken. Council Member/Commissioner Brinker asked why the funds for Agenda Item Nos. 32, 33, and 34 were coming from the General Fund and not from Community Development Block Grant (CDBG) funds. City Manager Wilson advised that it was really a matter of priorities, and that these items had been funded through the General Fund for a number of years. He added that he believed that most of the CDBG funds had already been allocated. Mr. Brinker stated that he understood that the CDBG money had already been allocated, but he wanted to know whether these projects would meet the criteria for that kind of funding. Mr. Wilson stated that he believed that they would, but he would have to confer with Maggie Pacheco, Executive Director of the Economic Development Agency. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Brinker, that said resolution be adopted. Resolution No. 2007-226 was adopted by the following vote: Ayes: Council Members/Commissioners Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Abstentions: Council Member/Commissioner Estrada. Absent: None. 33. RES. 2007-227 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City Manager to execute Amendment No. 4 to the Services Agreement between the City of San Bernardino and New Hope Missionary Baptist Church to provide community services at the New Hope Family Life Center. (See related Agenda Item No. 32) 13 07/02/2007 Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Brinker, that said resolution be adopted. Resolution No. 2007-227 was adopted by the following vote: Ayes: Council Members/Commissioners Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Abstentions: Council Member/Commissioner Estrada. Absent: None. 34. RES. 2007-228 - Resolution of the Mayor and Common Council of the City of San Bernardino ratifying the execution of Amendment No. 3 to the Head Start Contract with the County of San Bernardino Department of Human Services to provide pre-school services for the period of July 1, 2007 through June 30, 2008 and ratifying all action taken between July 1, 2007 and the date that the Resolution is executed. (See related Agenda Item No. 32.) Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Brinker, that said resolution be adopted. Resolution No. 2007-228 was adopted by the following vote: Ayes: Council Members/Commissioners Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Abstentions: Council Member/Commissioner Estrada. Absent: None. 35. Item Deleted. 36. RES. 2007-229 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of an Agreement and purchase order in the amount of $350,000.00 with one one-year extension at the City's option, between the City of San Bernardino and Nelson Paving and Grading Corporation (NPG), for miscellaneous street repairs throughout the City of San Bernardino. Council Member/Commissioner Kelley stated that he wanted to make sure that he had an opportunity to meet with staff to discuss the issue of some miscellaneous street repairs. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Derry, that said resolution be adopted. Resolution No. 2007-229 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 14 07/02/2007 37. RES. 2007-220 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the Director of Finance to amend the FY 06- 07 budget by transferring $342,000.00 into Account Number 527-413-5179 in order to balance out this account, and to increase Purchase Order Number 300476 in the amount of $20,000.00 between the City of San Bernardino and Inland Regional Material Recovery Facility (IRMRF) pursuant to 3.04.01OB3, of the Municipal Code for transfer trash disposal fees. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-220 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 38. RES. 2007-221 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing an increase to annual Purchase Order Number 207326 in the amount of $24,000.00 between the City of San Bernardino and the County of San Bernardino Solid Waste Management Division pursuant to 3.04.01O113, of the Municipal Code for street sweeping and street dumps disposal fees. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-221 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 39. RES. 2007-222 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of an Agreement and increase to a purchase order to McCray Enterprises of San Bernardino pursuant to Section 3.04.010 B-3 of the Municipal Code to refurbish two (2) automated refuse trucks including a new Labrie Automizer refuse body to be utilized by the Public Services Department Refuse Division. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted; and that the Director of Finance be authorized to amend the FY 2006/07 Refuse budget to appropriate $20,700 from the unappropriated Refuse Fund balance into Account No. 527-412-5173, Outside Vehicle Maintenance. 15 07/02/2007 The motion carried and Resolution No. 2007-222 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 40. RES. 2007-223 - Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the City Manager to execute Consultant Services Agreements by and between the City of San Bernardino and ERISS Corporation, a California Corporation, to perform a SBETA Labor Market Survey and a SBETA Web Based Applications / Tools and Workforce Reference System pursuant to Municipal Code Section 3.04.010B.3. Council Member/Commissioner Baxter made a motion, seconded by Council Member/Commissioner Johnson, that said resolution be adopted. Resolution No. 2007-223 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 41. Ban the Box Review City Manager Wilson explained that "Ban the Box" seeks to remove the criminal history questions from the initial employment application, citing potential discrimination. He stated that previously the Council took action to refer the matter to Personnel Committee and to the Human Resources Department for further discussion and recommendation. Linn Livingston, Director of Human Resources, provided an overview of the staff report, explaining that it had been prepared with the help of the City Attorney's office and the Civil Service Department. She stated that there is a perception that a conviction will keep somebody from getting employment with the City of San Bernardino; however, it is important to point out that a conviction does not necessarily mean that you will not be employed with the City. She stated that applications are looked at on a case -by - case basis, and several factors are taken into account such as the applicant's criminal record, seriousness of the offense, the position applied for, and other mitigating factors. She pointed out that safety positions and recreation positions are a little bit different than other positions, and it is very important to note that they have their own standards and they are looked at differently. Ms. Livingston stated that one of the things that the three departments had worked on was how the City could take a positive step forward and do something to eliminate the perception that a conviction noted on their application 16 07/02/2007 would preclude them from getting employment with the City. To that end, staff was making three recommendations, as follows: 1. Relocate the prior felony and/or misdemeanor information to the end of the application. 2. Add the language, "conviction will not necessarily disqualify an applicant from employment. " 3. Add language that states, "exclude convictions for marijuana -related offenses more than two years old," which will keep the City in compliance with state laws. Ms. Livingston stated that staff is not recommending that the City "Ban the Box" —that even though they believe it is important to streamline the process, for liability reasons it's not a good idea, and their recommendation is not to do so. City Attorney Penman advised that state law presently provides that we cannot consider convictions for marijuana use that are more than two years old. He added that there is an exception for peace officers, but other than that, pursuant to state law we cannot consider those convictions, so that is why that language has been added to make our application form consistent with state law. The following individuals expressed dismay and discouragement with staffs recommendation not to "Ban the Box," citing a lack of methodology and statistics to substantiate the decision and negative hiring practices they have personally encountered: Kim Carter, who ascertained that six other entities have banned the box; Stephanie Brooks; Tasha Banken; Michelle Freeman; Cherie Abercombie; Jay Lindberg, who ascertained that when you say a conviction "may not" or "will not necessarily" disqualify, that it is just legal language that means nothing. He stated that he thought something that would be far more humane would be to include language such as, "nonviolent offenses greater than ten years old can be omitted." Council Member/Commissioner Baxter asked Ms. Livingston if staff had looked at several other cities that had already banned the box, and whether there were six such cities in California. Ms. Livingston answered that the City of San Francisco has "Banned the Box" and Los Angeles was considering it; however, at the time they made their inquiry, Los Angeles had not actually implemented it. 17 07/02/2007 She pointed out that although San Francisco has "Banned the Box," all applicants are now required to complete a special two -page conviction supplemental to the application. Then, they don't actually look at that supplemental until somebody has been made a job offer later in the process. Council Member/Commissioner McCammack stated that if the City takes the action that is being requested, she feels it will send a mixed message to young people relative to crime prevention —that we're trying to teach kids not to break the law because there are consequences to pay if you do. She noted that the consequences could be short or they could be long, but the message is "don't break the law," and if we change our tactic now we will be sending mixed messages to these kids, saying it's OK if you have a felony, we might just look the other way, and that is not a message that she is willing to send to young people. Council Member/Commissioner Johnson stated that our system in this country is based on the belief that people can be rehabilitated, and "Banning the Box" would remove the criminal history from the original employment application. He stated that cities across the nation have looked at doing this, and several cities have found that the criminal history question creates an unnecessary barrier to employment. He stated that San Bernardino has an opportunity to say that we can be a city of hope, a city where people can have a chance to be somebody, but we decided not to look at it that way. It appeared to him that staff didn't really do a study, but merely put something out there because it was scheduled to come back before the Council. City Attorney Penman read into the record Public Resources Code Sections 5164A(1) and 5164B(1) which prohibit hiring individuals convicted of specified offenses to work in parks, playgrounds or recreational centers in positions having supervisorial or disciplinary authority over any minor. He also read Labor Code Sections 432.7 and 432.8 relative to marijuana and limitations placed on employers insofar as asking an applicant for employment to disclose arrest information that did not result in a conviction or information concerning referral to or participation in any diversion program. Council Member/Commissioner Kelley noted that based on the legal guidance that Mr. Penman provided, the Council is, in fact, protecting all of our residents, including our children at our recreational facilities. Council Member/Commissioner Derry stated that he had no objection to our current policy —that he understood the concerns of the folks in the audience, but he didn't see a need for us to augment or change our policy, which has been in place for years. He stated that he would be voting against the recommended motion. 18 07/02/2007 Mayor/Chairman Morris pointed out that one of the speakers had commented that there were six jurisdictions in California that have moved to "Ban the Box" —that is, to delay the background check to a later stage of the hiring process. He questioned if this was in fact the case, and whether staff had done a complete investigation as to whether there are other cities that have done this. If so, how was it working —had it been successful or had it resulted in bad hires. He wanted to know how thorough staff had been in making an analysis for the Council to reflect upon. City Manager Wilson stated that it was his understanding, from Ms. Livingston's comments and the staff report, that San Francisco has done so and Los Angeles considered it. Since those were the only two cities that were mentioned, he assumed that was the case. Ms. Livingston stated that they looked around California, but they did not talk to San Francisco. From the back of the auditorium speaker Kim Carter recited the names of the six entities as City of Oakland, City and County of San Francisco (which is actually one entity), and County of Alameda. Note: Due to the fact that she did not have a microphone, complete information was not picked up on the tape nor heard by the recording deputy city clerk. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Baxter, that no further action be taken on "Ban the Box;" and that the Mayor and Council concur with the changes to the City's employment application as recommended in the staff report dated June 22, 2007, from Linn Livingston, Director of Human Resources. The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, McCammack. Nays: Council Members/Commissioners Derry, Kelley, Johnson. Absent: None. 42. Resolution of the City of San Bernardino noticing a public hearing relative to the formation of Underground Utility District No. 34, generally located along portions of 3'd Street, between Waterman Avenue and a point 205 feet east of the centerline of Shirley Avenue, in the City of San Bernardino. (Continued from June 4, 2007) Staff recommended that this matter be tabled. Council Member/Commissioner Derry made a motion, seconded by Council Member/Commissioner McCammack, that the matter be tabled. 19 07/02/2007 The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 43. Resolution establishing the San Bernardino Bicentennial Ad Hoc Committee (Continued from June 18, 2007) Resolution of the Mayor and Common Council of the City of San Bernardino establishing the San Bernardino Bicentennial Ad Hoc Committee of 19 members with two alternates for the purpose of planning the celebration of the 200" Anniversary of the Founding of San Bernardino. (43A) RES. 2007-230 - Resolution of the Mayor and Common Council of the City of San Bernardino establishing the San Bernardino Bicentennial Ad Hoc Committee of nine members with two alternates for the purpose of planning the celebration of the 200" Anniversary of the Founding of San Bernardino. (43B) Dr. Bill Coleman, who was instrumental in working with the ad hoc committees planning the bicentennial of the United States in 1976, and later, the bicentennial of the constitution, suggested that the ad hoc committee first be established as a small group with a good strong leader, which could then be expanded as events begin to unfold. He suggested David Smith as a potential chair for the committee. During the subsequent discussion, it was noted that the language in the resolution did not stipulate that any two of the four Mayoral appointees (two regular and two alternate members) could be nonresidents of the City. It was suggested that the City Attorney's office provide a corrected resolution to be considered by the Council later in the meeting. The corrected resolution was distributed to the Council for their review. Council Member/Commissioner Kelley made a motion, seconded by Council Member/Commissioner Derry, that the corrected Resolution 43B, be adopted. Resolution No. 2007-230 was adopted by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 20 07/02/2007 44. Resolution of the City of San Bernardino authorizing the City Manager or his designee to execute the sale of two Kawasaki Police motorcycles (as equipped, minus City radios) to the San Bernardino County Sheriffs Emergency Vehicle Operations Center (EVOC) to be used as training motorcycles for basic and instructor police motorcycle classes. These motorcycles are identified as Unit #1005 (VIN #JKAKZCP28ZB519662, a 2002 Kawasaki) and Unit #1006 (VIN #JKAKZCP2XYB517713, a 2000 Kawasaki). (Continued from June 18, 2007) Mayor/Chairman Morris stated that he had been advised by the Police Chief that due to an accident only one motorcycle was now available; and there was a consensus that the matter be continued for two weeks. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Baxter, that the matter be continued to the Council/Commission meeting of July 16, 2007. The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. Subsequently, Council Member/Commissioner Kelly made a motion, seconded by Council Member/Commissioner McCammack, that the matter be reconsidered and tabled. The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 45. Discuss and take possible action concerning public opinion survey results and possible November 2007 ballot measure to modernize the City's Utility Tax ordinance Council Member/Commissioner Derry made a motion, seconded by Council Member/Commissioner Johnson, that the matter be tabled. Council Member/Commissioner Derry withdrew his motion. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Derry, that the matter be continued to the Council/Commission meeting of July 16, 2007. 21 07/02/2007 The motion carried by the following vote: Ayes: Council Members/ Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 46. Workshop - budget deliberations for FY 2007/08 - Economic Development Agency Boardroom Resolution of the Mayor and Common Council approving and adopting the City of San Bernardino's Final Budget for Fiscal Year 2007/2008 and establishing the City's Appropriation Limit as required by Article XXIII B of the California State Constitution. City Manager Wilson advised that today's workshop was a continued discussion of the City's proposed FY 07/08 budget; and that included in the backup materials was a Request for Council Action that summarized some of the discussion points covered during the last meeting, including the issue of funding $50,000 in the Mayor's budget for the Summer Youth Internship Program. He stated that it also included a number of other adjustments which were noted in the Staff Report on page 2; and that the Director of Finance had also provided an update on the projected Measure Z revenues for FY 07/08, which had changed dramatically from the initial number that was in the preliminary budget. Barbara Pachon, Director of Finance, stated that although the numbers were preliminary —best estimates so to speak —in talking to the State Board of Equalization it looked like the City's District Tax revenue, originally estimated to be $1.6 million, was only going to be about $1,162,900 for this year. Therefore, based on what the police have spent to date, and what staff projects for them to spend through FY 06/07 ($1,450,000), it looks like FY 06/07 will end with a small shortfall in the Measure Z account of $287,100. She stated that carrying that shortfall over into the projection for FY 07/08, staff had lowered a little bit the revenue projections for 07/08; however, the expenditures would remain the same for the Police Department at $4,725,100. Therefore, there will be an excess in FY 07/08 of $574,900; but when the shortfall from FY 06/07 is factored in, it looks like only $287,800 is going to be put into the Measure Z reserves. Mayor/Chairman Morris indicated that this was a sobering second look at the Measure Z income stream, and he was not sure this could be addressed during this workshop —that they probably needed to look at this budget and the EDA budget together to see what resources might be made available for Operation Phoenix expansion programs —that this number certainly would not articulate into a lot of Operation Phoenix expansion all by itself. 22 07/02/2007 Ms. Pachon pointed out that due to the fact that the backup materials must be prepared in advance, in the backup materials for this agenda item she was recommending that the Council adopt this budget even though it contained the original Measure Z projections. She indicated that she had no problem with passing the budget and then coming back with a budget amendment, because they didn't have time to go through and update the numbers prior to today's meeting. She stated that there was already another budget amendment to process; however, budget amendments were normal things for staff to bring back to the Council for processing. Ms. Pachon explained that staff was expecting that the economy would pick up and turn around. She stated that in FY 06/07 sales tax was going to be down, but they budgeted increases and they expect it's going to increase right now in FY 07/08; and that is the same rationale they are using in projecting Measure Z. She stated that it was all projection at this point, although Measure Z was a little harder to project because they have no history on it. Council Member/Commissioner McCammack stated that her concern was that if Measure Z drop-off was 25 percent, then regular sales tax payments would most likely be 25 percent lower since they mirror each other; and if that was the case, she didn't think passing this budget would be very prudent. Ms. Pachon stated that it was true that even the regular sales tax looked down at this point —that the sales tax payment they received this month was $750,000 less than what they received this time last year. She stated that right now they were about $1 million behind the projection she had for FY 06/07; however, two more payments would come in, one at the end of July and one at the end of August, and one of those would be a true -up payment. Also, she had recalculated the Utility User's Tax (UUT), and at this point in time it was about $250,000 less than what she had projected, with only one more month (June) of revenues to come in. City Manager Wilson stated that his recommendation would be for the Council to act on the budget as submitted by Ms. Pachon and move ahead as required with budget modifications as the year goes along and the budget articulates out in actual sales tax, UUT, and other taxes received. He suggested that the budget ad hoc committee meet with staff on an ongoing basis during the course of the year to review these revenue and projection figures, so that a year from now they are not confronted with a big surprise. Council Member/Commissioner Estrada stated she thought they might have opportunities for other things relative to some modifications that they may be able to make from the Redevelopment Agency's $9.6 million. She stated that she didn't think they were prepared to address the $9.6 million today, but relative to the City's budget, she thought there might be some augmentation or 23 07/02/2007 relief coming from upcoming projects, after they have looked at that $9.6 million and decided how they are going to work that out. Council Member/Commissioner Kelley asked Mr. Wilson whether the budget before them included any additional Landscape Maintenance District (LMD) inspectors, or a position to oversee the contractors performing this work, or any more staff to allocate for some of the programs that have been proposed. City Manager Wilson answered that the new park superintendent would be doing an assessment of all the City parks and coming back with a report on what the real needs are. He added that everyone knows there are needs; however, how do you quantify them and what are the priorities. Regarding the LMDs, Mr. Wilson stated that the City has a consultant coming on board to help identify how the City can address the issues of contract compliance. Also, staff is looking at beefing up the specifications with respect to the contractors, and will be coming back with a report on that also. He cautioned the Council that this could result in an increase in the assessments, because the City has held the line on the LMDs for a number of years, and with this type of comprehensive review, it's likely that they may end up raising those assessments for the residents in those areas. Mr. Wilson acknowledged, however, that the increases to the Parks budget were mostly in the recreation arena having to do with the Safe Summer Initiative Program and things along those lines. He stated that they also anticipated bringing on a number of interns that would work in the parks; so yes, there would be more resources coming, although it could be just for the summer rather than anything long term. Mr. Kelley stated that he could not sit by year after year and see nothing allocated long-term for the parks. He used Little League baseball as an example, stating that in his opinion it is the number one crime intervention prevention program we have in the City, and there are needs out there and he wanted to make sure that those needs are being addressed —not just for the short term, but long-term. Council Member/Commissioner McCammack stated that she agreed that they needed to act on both the City and EDA budgets as companions. She stated that Ms. Estrada had brought up some excellent points on how they might be able to shift some of those dollars; and it concerned her that they could pass a budget that has items in it that could technically and legally be paid for by EDA, thereby freeing up some of the general fund monies to make up the shortfall they are about to experience. Council Member/Commissioner Estrada stated that for some time now she had looked at the whole issue of redevelopment, and when you now look at the City 24 07/02/2007 of San Bernardino on the map, and you look at all the different redevelopment project areas, she would venture to guess that about 80 percent of the City is in a redevelopment project area of one sort or another —either the City's or the Inland Valley Development Agency's. She noted that most of the projects that the Community Development Commission has to deal with come through the Economic Development Agency for assistance of one kind or another, whether it's housing monies, tax increment, or whatever. She also pointed out that a lot of the projects that get built in the City don't come through EDA; however, the construction of those projects contributes to the tax increment increase that the Agency receives. She stated that bottom line, however, all projects have to go through the Planning Department, whether it's a project that is assisted by the Agency, or whether it is a project that is not assisted by the Agency; and that there are a lot of projects that don't get any assistance from the Agency, but are developed in redevelopment project areas. Therefore, she thought that maybe it was time for the Council to consider a change, and as a matter of policy dedicate a certain percent of the tax increment to Development Services for the purpose of being able to cover a lot of their expenditures and to be able to assist the department in finding more planners, more engineers, or whatever it is that is needed in order to keep those projects going through that department. Ms. Estrada reminded everyone that they had increased the Redevelopment budget by $1 million because those funds were needed in order to hire the personnel that the Agency needs to continue to function. However, as they have heard, part of that is very dependent on what happens in Development Services, and if the projects don't flow out of Development Services, they are not going to crank out tax increment. She stated that she wanted to bring this up because it goes to the point that she was trying to make earlier, and that is, if there is a way of doing business, that as a matter of policy, they consider those costs in Development Services that are actually part of the EDA cost of doing business, then it would stand to reason that part of the tax increment money could be used to help alleviate some of the General Fund burden on the City, and in turn, that money could be used to do those other things that need to be done. For clarification, City Manager Wilson noted that the Community Development Commission had already approved adding three positions to help address the issues Ms. Estrada was talking about in Development Services; so he asked Ms. Estrada if she was talking about the tax increment being used to assist the department beyond those three positions. Ms. Estrada explained that those three positions were being funded because they felt that obviously they were needed as far as EDA was concerned. However, 25 07/02/2007 7 everything that they do in Planning is assisting RDA projects, whether they are receiving assistance through EDA or not. Therefore, her point was that it can't just be the planner and the engineer that they are going to be paying for —what about the clerks, etc. There ought to be a percentage that goes to the department budget, and then how to spend that percentage is decided by the department head and the people in the department, as they are the ones that know all of the expenditures that have to be made within the department. Mayor/Chairman Morris indicated that there may be some legal limitations or prohibitions with regard to how those tax increment dollars are used in relieving the General Fund. Council Member/Commissioner Derry stated that his only concern would be that by that measure they could use tax increment for almost any service in the EDA area. He noted that when the HUB project was being developed, the developers still paid building fees and other fees to the City for those services, and now they have taken some money out of EDA to help cover that extra manpower that is necessary for planning and engineering. In other words, developers are still paying the building fees, they are still paying the plan check fees, and they are still paying all of those costs, and now we are talking about further subsidizing the City out of the EDA budget. He stated that what they ought to be looking at is the City's fee structure, to see if it is up to speed, and he thought that staff was going to do that this year. He stated that he didn't want the fees exorbitantly high —he just wanted them fair and reasonable to cover the costs; and he thought that before they go into the EDA budget that it would be prudent to look at the fee structure first. He pointed out that the developers just want their projects approved, and they want them to go through as swiftly and as neatly as possible. Mayor/Chairman Morris agreed that in terms of keeping the responsibility within the department that allocates the service, that should be the preferred methodology by which the City operates —with a pay as you go department, so we don't have to continually bail it out with other resources. Council Member/Commissioner McCammack expressed concern relative to raising any fees without a thorough understanding of how it impacts everybody. She stated that she could not see raising fees in order to bail the City out of catching up —that was the wrong approach as far as she was concerned. She stated that Mr. Derry's comments made a lot of sense from the standpoint that the Planning Department is working to accommodate all of EDA's economic development projects —getting them through the door, out the door, digging the dirt, laying the concrete, and paying the property tax that creates the tax increment. 26 07/02/2007 Ms. McCammack stated that she thought it would take 20 percent to make the City whole for all the services that it does in order that EDA can get it's projects out the door and get the tax increment on the books. However, she was afraid to go back down this road without complete knowledge of what effect it would have on those individuals who aren't in redevelopment areas and that are just small little companies trying to survive. Mayor/Chairman Morris stated that it was very sobering to look at the economy and the coming fiscal year, but the appropriateness of using EDA tax increment money for a bail was the question. He pointed out that neither the EDA executive director nor EDA counsel were in attendance, because this wasn't really on the agenda for today; however, they were scheduling a workshop to talk about the tax increment resources and how they might be carefully saved or expended as this Council shall determine. City Attorney Penman advised that he had some concerns about the budget document in terms of legalities. He stated that Article 23B of the State Constitution provides that they have to establish the City's appropriation limit, but they are prohibited from establishing that limit in a manner that allows deficit spending. He stated that the information they have been hearing over the last several weeks has given them concern, including the fact that both Measure Z money and sales tax money is not going to be what staff had hoped it would be. He added that when his office received the check from the State Board of Equalization for three hundred and some thousand dollars, he was informed by the City Manager that it should have been for double that amount. He stated that they had not signed this document because they were not certain that if the Council adopted this budget whether they would be violating state law by enacting a document that provides for deficit spending. Therefore, he believed it would be prudent, at this point in time, for the proposed budget document to be changed to have a more accurate reflection of what the income is likely to be; and that some of the budget amendments that Finance is already planning should be incorporated into the document before the Council votes on it. Otherwise, as the Council's attorney, he would have to tell them that they may be violating the state law. He pointed out that the continuing resolution that they passed at the last meeting was good through July, giving the Council one more meeting before it would expire. He added that in days gone by they have gone into August and even September with continuing resolutions, and although he does not advocate that, he thought it was preferable to adopting a budget document that does not comply with state law. City Manager Wilson stated that he understood what the City Attorney was talking about, however, the reality was that the budget is a fluid process; and at some point in time they just have to adopt the budget and move forward. He added that he didn't think there would be any new information within two weeks, and the Council must adopt the budget at some point in the near future. 27 07/02/2007 Ms. Pachon commented that from her standpoint, this was a normal operation for budgeting in the Finance Department —that their numbers are always projections. She stated that it was a little bit harder this year because we are in a more downturn economy, while the last couple of years we have been in a more upturn economy; however, they are just as much projections today as they have been every other year that the Council has passed the budget. Council Member/Commissioner Brinker stated that two months ago, during the first Council meeting in May, as they discussed the audit that they had just gone through, he had suggested that they should make Development Services their first and primary focus; and he said that because it really is a revenue generating department. He stated that he was a little dismayed because he felt they had spent the last couple of months twiddling their thumbs, when they really could have jumped on this and possibly made some significant changes. He reminded the Council members that earlier in this meeting they had approved about half a million dollars in contractual services to augment the Development Services Department because it doesn't have the staffing that it needs —so instead of dealing with the real problem, which is hiring and getting people on -board and streamlining the system and getting these projects through, they just pushed it off and spent a half a million dollars to hire some other people to do the work that we couldn't get done; and now they were quibbling about how they were going to make the money for next year's budget. He suggested that whatever decision was made on the budget tonight, that at the next Council meeting they come back with some substantive suggestions about how they are going to deal with the problems in Development Services to improve the efficiency of that process —that the audit was very clear on what needed to be done. Council Member/Commissioner McCammack stated that she understood that the budget was a fluid process; however, they had been hit this year with a couple of "smack you in the face, wake you up" revelations that they typically haven't had prior to adopting a budget in years past —one being that sales tax may be down as much as 25 percent, which could equate to a $1.5 million swing from where they were right now, just for the first quarter. She stated that the other big number that scared her was the number of staffing needs —not only in Development Services, but in Parks and Recreation and other departments as well. Yet the most glaring number she saw was the total estimated expenditure savings of $3 million. She questioned whether this meant salary savings —did it mean they wouldn't be filling positions that were desperately needed —did it mean that departments would be spending $3 million less than they were told they could spend. She stated that she thought they needed to take the time to know exactly where the dedicated monies need to be, exactly where the priorities are, and make the adjustment. She stated that she 28 07/02/2007 thought the suggestion about using EDA money was excellent —that it made a lot of sense, and if they needed to do that to balance the budget and not leave this $3 million salary savings number in there, then that is what they should do. Council Member/Commissioner Baxter advised that sales tax is down statewide —that the reality is, people are just not buying —that we are going through one of those cycles and we are going to be impacted. He stated that he thought they needed to analyze the EDA situation before they passed any kind of a budget that was going to go into a deficit; particularly in light of the shocking numbers they had received tonight. He stated that he has always been a fiscal conservative and has always believed in having a good solid revenue reserve, and he didn't see the reserve here that he felt they needed. He indicated that they would probably have to go into the tax increment, and congratulated Ms. Estrada on the idea, stating that he thought it was an excellent concept that at least three of them agreed on. He noted that there were other programs that they needed to make sure they didn't lose aside from the bodies that Ms. McCammack had alluded to, and that was the Summer Youth Program. He stated that he would like to see the budget come back with the EDA planners in the budget itself, because he thought it was a more prudent way for them to approve the budget. Following a short break, Mayor/Chairman Morris advised that during the break he was looking at the backup exhibits to the Request for Council Action with regard to the issue that Mr. Penman raised —that is Gann Article 13B, Limitation, in terms of where they were with regard to the total appropriations that are authorized; and it appeared that our appropriations limit under the Gann Initiative is $244 million plus. He pointed out that they were substantially below the Gann limitation in terms of the proposed budget. Mayor/Chairman Morris stated that to summarize, he thought the concerns of the Council were 1) how were they going to move ahead with a budget that reflects what they believe to be our City's needs, as against our City's income stream, 2) and the possibility that there may be some creative ways to use some EDA resources. He stated that perhaps the best way to consider this possibility would be to meet again in two weeks, and invite both the EDA executive director and EDA counsel —and that perhaps the budget ad hoc budget committee could meet with them in advance of the meeting to discuss this possibility with them, look at the opportunities that may exist, and then come back with some recommendations to see if the gap between the Council's expectations and what appears to be some revenue shortfalls can be closed. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Baxter, that the ad hoc budget committee meet with the EDA executive director and EDA counsel to discuss the budgetary 29 07/02/2007 ideas presented at this meeting; and come back to the Council/Commission meeting of July 16, 2007, with some recommendations. Council Member/Commissioner Estrada stated that she hoped they didn't look at this particular issue as a way of bailing out the City, because the number one reason that redevelopment law had changed so drastically over the course of the last decade was due to the perception that tax increment was being used to bail out cities. She stated she wanted to make it clear that she was not suggesting that they take tax increment and pay for three swimming instructors in the Parks and Recreation Department —that's what you call the abuse that the legislature had nailed down. What she was suggesting was taking tax increment money to pay for services being provided for its projects, directly and indirectly, through Development Services, which is very different from taking tax increment and paying for three swimming instructors in Parks and Recreation. City Attorney Penman stated that he didn't want anyone to misunderstand what he was saying when he quoted 23B about the appropriations limit —he was not suggesting that they were going over the appropriations limit. He stated that he was talking about adopting a budget that in effect guarantees or authorizes deficit spending; and that was his concern —the deficit spending. He stated that this was his 20' or 21" budget, and he had never felt the need to speak up this way before because he had never seen this problem before, and he just wanted to make that clear. The motion carried by the following vote: Ayes: Council Members/Commissioners Estrada, Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Absent: None. 47. Discuss and take possible action - Fire Department Inspection Fees for non- profit senior apartment complexes Fire Chief Conrad advised that there are nine senior complexes throughout the city that are considered non-profit and have 80 percent or more senior citizen occupancy. The annual inspection fee for these nine complexes brings approximately $23,540 in revenue to the City yearly. He stated that if the Council decides to waive those fees, one way to mitigate the impact and offset the loss in revenue would be to increase the administrative citation fine, which is currently $100 and is essentially levied if you do not comply with necessary corrections. He stated that this fine applies to any apartment complex and is currently $100; and he would suggest raising it to $200. Chief Conrad explained that one of the major reasons for implementing this inspection program was to bring problem apartment complexes into compliance 30 07/02/2007 with the code, making a safer environment for our citizens; however, the senior non-profit housing complexes are not one of our problems —they are very compliant, and if a problem is occasionally found, they are quick to fix it. So in terms of the initial intent of this particular fee, the senior complexes were not one of our problem areas that needed correcting. He stated that the City does have a problem with a lot of our apartment complexes kind of "thumbing their noses" at our $100 citation, and when the inspectors go in annually to inspect they find a lot of problems. Then, when they go back, the problems still have not been corrected because the only penalty is a $100 fine. He stated that the owners drag their feet fixing problems, and the inspectors go back to the same apartment complexes every year, and many of them have the same list of problems that they will fix temporarily and then in a year we've got those issues again. He pointed out that as part of this proposal, the inspection fee for the senior housing would be waived; however, if the inspectors find problems where they have not complied and they fail to comply, then a citation would be levied. Council Member/Commissioner McCammack stated that when she first brought this up she had explained to the Chief that the original purpose of this program was to make it very difficult for slum landlords to do business in this city. That was the intent of this program, and if they were not going to provide clean, healthy, and safe apartment complexes for their tenants, then it was going to be very expensive. She noted that the Chief's staff report indicated that citations are actually up more than $3,000 from the previous year without the fee being waived, which indicates that if they know the inspection is coming from the Fire Department and they are not fixing the problems —then that, in and of itself, is a problem. She stated that the idea of increasing the amount of the citations and waiving the actual inspection fees for the senior non -profits looks like a positive move. She asked her colleagues to consider the motion to ask the Fire Chief to implement both of the recommendations that he had outlined in the staff report. Council Member/Commissioner McCammack made a motion that the Fire Chief be directed to implement the recommendations as outlined in the Staff Report dated June 27, 2007, from Michael Conrad, Fire Chief. The motion died for lack of a second. City Attorney Penman advised that his office was making a request to the Attorney General whether the City can, in fact, charge more than a $100 administrative fee —that there is a question whether this is legal or not —and he didn't think the Council would be able to take action on the matter until a response comes back from the Attorney General. 31 07/02/2007 Mayor/Chairman Morris asked if there was some statutory prohibition on this. Mr. Penman answered that there is a section of state law that raises this question, which is the same issue that his office had on the fire fee, and his office made an inquiry to the Attorney General as to whether the City can charge $1,000 fines for violation of our fireworks ordinance. He stated that this was a companion question, in the same section. Mayor/Chairman Morris asked Mr. Penman when he estimated that his office would get a response back from the Attorney General on this; and Mr. Penman stated that it could be several months. Council Member/Commissioner Derry indicated that he actually liked the idea of the fine escalating for apartment complexes where the same problems are found two, three, or four years in a row. He asked whether the City could escalate year after year to a certain point —such as $100 the first year, second year $200, third year $300, fourth year $400, and fifth year $500—if the City receives the hoped for response from the Attorney General. He stated that if that was a possibility, he would like to include that in the changes. Mayor/Chairman Morris indicated that this could probably be done, assuming there is no statutory prohibition to this kind of escalation of fees. Mr. Derry stated that if there is, perhaps the City should pursue legislation to remove that restriction through Sacramento —that we have legislators that he was sure would be willing to help out. He noted that the people that live in the apartment complexes generally are low-income folks with the most need and the ones least able to defend themselves, so perhaps we might be able to get Sacramento to amend the existing code. Mayor/Chairman Morris inquired whether the Council wanted to defer this to a date when they would have the assurance that they could increase the citation fine as recommended by Chief Conrad, because of the fiscal impact of this proposal. Council Member/Commissioner McCammack stated that it is going on three years that this program has been in force, and each year the cost to the seniors goes up —not just for the rent, but for everything. She asked that Jolena Grider of the City Attorney's office explain the fees associated with the inspection program. Jolena Grider, Deputy City Attorney, explained that if the Fire Department cites someone administratively for several different counts, it's $100 per count. In addition, under the Government Code a citation for the first violation is $100, if there is another violation within the same 12-month period, it goes up to $200, 32 07/02/2007 and if there is a third violation or more within that 12-month period it goes up to $500. She advised that the same scale is used by Code Compliance that the Fire Department is using for the multi -family inspection program. Council Member/Commissioner Derry pointed out that the Council could request that staff come back with the waiver of the fees, and then later on do whatever the Attorney General allows us to do. Council Member/Commissioner McCammack made a motion, seconded by Council Member/Commissioner Johnson, that the Mayor and Common Council adopt the first portion of the Fire Chief's recommendation to waive the inspection fee for senior citizen non-profit complexes; and that the second phase relative to increasing the administrative citation fine come back to the Council after the City Attorney receives an opinion from the Attorney General relative to increasing said fine. Council Member/Commissioner Estrada stated that she would abstain on this item to avoid the appearance of a conflict even though her employer is Casa Ramona and not the Ramona Senior Complex. The motion carried by the following vote: Ayes: Council Members/ Commissioners Baxter, Brinker, Derry, Kelley, Johnson, McCammack. Nays: None. Abstentions: Council Member/Commissioner Estrada. Absent: None. 48. Public Comments Manfred Gildner, 4665 David Way, San Bernardino, CA, thanked Councilman Derry for repaving David Way and stated that he would like curb installed on the west side of David Way and "No Parking" signs placed on properties that extend into David Way about 10 feet, because it makes it very hard to park; thanked the Mayor for sending him a letter regarding the San Bernardino Twin Creeks Flood Control Channel; distributed an article by newspaper columnist John Weeks regarding the Stater Bros building at 40' and Waterman; and commented on an article in The Sun, Council to Hear Teenagers Request, wherein the teens were asking for funds from Measure Z monies, however, he thought there were several other programs they could participate in. 33 07/02/2007 Jay Lindberg, 6340 Orange Knoll, San Bernardino, CA, congratulated Councilman Derry for running against Dennis Hansberger; spoke in support of rebuilding our industrial base in San Bernardino County; and called attention to the incredible amount of foreclosures in the area, stating that we need to get people back on a more stable footing. 49. Adjournment At 7:20 p.m. the meeting adjourned. The next joint regular meeting of the Mayor and Common Council/Community Development Commission is scheduled for 1:30 p.m., Monday, July 16, 2007, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. No. of Items: 49 No. of Hours: 6 RACHEL G. CLARK City Clerk By; " �) Linda E. Hartzel Deputy City Clerk 34 07/02/2007