Red Words

A handful of Redlanders have recently sent letters to City Hall protesting a possible city bond issue that would raise $17 million to allow the city-owned water utility to purchase water rights that are already owned by the city.

City Manager N. Enrique Martinez has put forth the bond as a possible solution to what he has described as a decades-old accounting problem. In 1926, the city authorized bonds to purchase Mill Creek water rights. According to City Hall, there is no record that the water utility, which has its own budget, ever repaid the general fund for those water rights.

However, Jay Zercher, an accountant with Rogers, Anderson, Malody & Scott LLP, wrote a letter to the city in which he posits a far simpler solution.

"All that needs to be done is merely transfer the water rights to the water department by making an accounting entry first in the Governmental General Fund recording the transfer out of water rights at historic cost of $525,000. The second entry would be made in the Water Department which would record the receipt of the $525,000 water rights at historic cost," Zercher wrote in the Jan. 28 letter.

Zercher said Redlands' situation is like a homeowner who finds a cookbook in the living room. He wrote that such a homeowner would solve the problem by placing the cookbook in its right place in the kitchen.

Thus, in Zercher's argument, the city can simply transfer the water rights to the proper department. No fuss, no muss.

However, if the water department were to issue $17 million via bonds, likely necessitating a water rate hike to pay for those bonds, that money would go to the general fund. Martinez has proposed placing $1.5 million in reserves, using an equivalent amount to pay for street repairs and use the remaining $14 million to establish an endowment fund that would generate interest to be used for street repairs.

The possibility of water payments being used to fund general fund operations has raised concerns that the Redlands officials are contemplating financial moves that would essentially amount to taxation, although the public wouldn't get a chance to ratify the tax at the ballot box.

Earlier this month, the council voted 3-2 to hire consultants to study the situation. Mayor Jon Harrison,and council members Pete Aguilar and Pat Gilbreath voted to for the consulting contracts. Councilmen Jerry Bean and Mick Gallagher voted against the idea.

In a telephone conversation Wednesday, Zercher said his letter speaks for itself.

Martinez did not respond to an e-mail seeking comment.

Posted by Andrew Edwards at 10:57 PM | Permalink | Comments (1)

City Manager N. Enrique Martinez has sent a letter to the City Council and Redlands department heads outlining how he would use $17 million that could be raised through a possible bond issue.

A full article on the subject is scheduled to run in The Sun on Thursday. The most interesting aspect of Martinez's memo is that he explained how he would use interest generated from a $14-million endowment that would be created using bond revenues. That money, Martinez wrote, would be used to pay for street, curb and sidewalk repairs.

Martinez said none of the money would be spent on payroll. Of the remaining dollars, $1.5 million would go to budget reserves and the other half would go to street repairs.

The bond, as Martinez has proposed, would allow the city's water utility to purchase Mill Creek water rights that are already owed by the city. Those water rights were acquired with revenues raised through bond issue that was authorized back in 1926.

Martinez has said the water utility never properly paid for those water rights. Taxpayer dollars paid off the 1926 bonds, and Redlands' water utility is not supposed to be funded by taxes. The water utility has a separate account, which in government parlance is called an "enterprise fund." Water customers - who are often, but not always, Redlanders - pay for the water utility's operations when they pay off their water bills.

The city manager has taken the position that taxpayers have improperly subsidized the water utility for decades, thus creating a serious accounting problem that needs to be squared away.

"People seem to think that because it happened 80 years ago, you shouldn't do anything about it. Accounting procedures are not made by me or that guy on the street," he said.

The possible $17-million bond would allow the water utility to purchase the water rights from the city. It would also give the general fund a cash infusion. Redlands has a balanced budget for the current fiscal year, but officials have spoken of possible budget shortfalls during the budget year that begins July 1.

Under Martinez's plan, water customers' payments would effectively help finance general fund operations. This has raised concern that higher water rates would essentially be a tax in all but name.

On Jan. 15, the City Council approved contracts with consulting firms to examine the city's water rates and possible bond issue. Bond discussions have also prompted concerns that a hefty water rate hike could be in the works. The city has already upped water rates by 7 percent this year after an equivalent rate hike last year.

The council voted 3-2 to approve the contracts. Councilmen Jerry Bean and Mick Gallagher have already taken positions against the city manager's plans, whereas Mayor Jon Harrison and council members Pete Aguilar and Pat Gilbreath wanted to receive expert opinions on the issue.

"I still feel it's something that warrants investigation," Harrison said Wednesday.

So far, the council doesn't seem to be terribly enthusiastic about the possible bond issue. The council trio who voted for the consulting contracts want more information, but have not made comments in public nor in interviews that suggest they are fired up to issue bonds in order to fix a reported accounting error.

"The rationale makes sense from a business perspective but we still have to look at it from a community perspective," Harrison said.

When the council decided to go forward with the consulting deals

Posted by Andrew Edwards at 6:19 PM | Permalink | Comments (2)

The City Council last week stripped troubled City Treasurer Mike Reynolds' of his authority to sign city checks.

The council took the same action in regard to assistant city treasurer Debbie Myers and another Redlands employee, Peggy McVey. The council transferred the authority to sign checks and warrants to Finance Director Tina Kundig, assistant finance director Thomas Steele and interim revenue manager Judy Jacobson.

The action was taken at the Jan. 15 council meeting when council members approved what it is called the consent calendar, which is usually a handful of routine decisions.

Reynolds did not return a phone call or e-mail seeking comment for this blog. Reynolds was arrested in October on suspicion of misappropriation of public funds and two related charges. He pleaded innocent to all charges last month in San Bernardino Superior Court and his next scheduled court appearance is set for Feb. 13.

Reynolds has not been accused of stealing city funds, instead, prosecutors have alleged that he mishandled public money. The charges stem from a check worth nearly $38,000 that Reynolds deposited with Bank of America in mid-September. The essence of the charges is that Reynolds sought to cover up a shortage in the the city's petty cash fund.

Patrick Milligan, Reynolds' defense attorney, has countered that Reynolds acted properly. Milligan has put forth that Reynolds wrote the check to transfer money from an account under the Treasurer's Office's control to the city's general fund to ensure that Redlands would not miss out on funds while he conducted an internal investigation into a shortage in the petty cash fund.

Reynolds and his attorney have both acknowledged that the city's petty cash account was out of whack at the time of Reynolds' arrest.

Posted by Andrew Edwards at 6:45 PM | Permalink | Comments (1)

Redlands Baseball for Youth's third annual "Cluckin' with the Cops" dinner undraiser is set for Saturday.

Pork and chicken dishes are set to be served at the dinner, which is planned to help furnish Redlands Baseball for Youth's "Xtreme Team" with gear and uniforms. Baseball for Youth board member Kerry Kennison said about 60 kids take part in the team's activities, which gives children with mental and physical disabilities a chance to play ball.

"There's no other place for them to play in organized opportunities," Kennison said. "We'll take any child that wants to play. There's no cost for the program."

The dinner is scheduled to be held at Martha Green's Eating Room. The restaurant's sign features a brightly-colored chicken. There was no word that cops would actually make clucking noises at the event, but Redlands officers are expected to volunteer their time to wait tables and work in the kitchen.

Dinner seatings are scheduled for 5 and 7 p.m. and the meal will include a dessert. The $25 cost of dinner will be donated to the Xtreme Team.

The Eating Room is at 107 East Citrus Avenue, Redlands. For more infortmation on the dinner or the Xtreme team, call Kennison at (951) 751-4226.

Posted by Andrew Edwards at 3:41 PM | Permalink | Comments (0)

Redlands is on track to launch a red light camera enforcement program following Tuesday night's council meeting.

The council voted 4-1 to install an enforcement camera at the westbound approach of the intersection of Citrus Avenue and University Street. Police Chief Jim Bueermann and City Manager N. Enrique Martinez described the crossing as Redlands' most dangerous intersection.

Councilwoman Pat Gilbreath voted against the camera. She said at the meeting she would prefer a live patrol officer at the intersection.

Police recorded 120 collisions at the intersection between Nov. 26, 1997 and Oct. 31, 2007, according to a city document. Bueermann said at Tuesday's council meeting that one of those crashes caused the deaths of a woman and a child.

Two police officers were also involved in collisions while respondng to calls, he said.

The council approved a $6,000-a-month contract with Redflex Traffic Systems for the camera. Bueermann said the city will need to catch 1.5 drivers running red lights per day to break even on the deal.

"It's my best guess that this will not cost us anything the first year," he said.

Although Councilman Jerry Bean voted for the camera, he expressed his disapproval of the lack of a bidding process. Bueermann told the council the Police Department chose Redflex after hearing pitches from two vendors, but Bean said he will insist on bids for future purchases.

"There will come a time when I am going to automatically vote against anything that should be competitively bid that isn't," Bean said.

During Tuesday's evening session, the council also voted to endorse two ballot propositions, measures J and M.

Measure J is a $65.5-million Redlands Unified School District bond that would mostly pay for the completion of Citrus Valley High School in northern Redlands. Measure M is is a $500-million San Bernardino Community College District bond that would pay for improvements at San Bernardino Valley and Crafton Hills colleges.

Both bond measures are scheduled to appear on the Feb. 5 Presidential Primary ballot.

Gilbreath noted that she supported the bonds with reservations because she's concerned that local voters could soon grow tired of bonds. The city could place its own bond on the ballot at some point in the future to fund a new police station.

Posted by Andrew Edwards at 5:33 PM | Permalink | Comments (1)

By a narrow margin, the City Council decided Tuesday to learn more about financial maneuvers that could result in higher water rates.

The council voted 3-2 to hire consultants to study Redlands' water rates and an accounting problem involving the city's water fund and general fund. The multi-million dollar problem, as reported by City Manager N. Enrique Martinez and interim utilities chief Chris Diggs, happened because Redlands' water utility never repaid the city's general account for Mill Creek water rights that were acquired with bonds that were authorized in 1926.

The way Martinez and Diggs describe things, taxpayers have improperly subsidized Redlands' water operations and the water utility should have to repay the general fund. Payback could involve a $17-million bond (if the utility buys the water rights) or some kind of lease arrangement. Increased water rates could finance any deal made between the water utility and general fund. Ultimately, a portion of customers' water bills could pay for projects that are traditionally paid for with tax dollars or other revenue sources.

And that's where things get controversial. Councilmen Jerry Bean and Mick Gallagher voted against the consulting contracts, and Bean bluntly accused city administrators of attempting to manipulate water rates to skirt California's law that requires cities to call a public vote before raising taxes.

"We can't do it (balance the budget) with financial schemes such as this one," Bean said. "This is a water department, water utility tax without a vote of the people."

Martinez said the possible $17-million bond issue won't be a used to raise employee salaries. He told council members $1.5 million would be spent on street resurfacing, and an equivalent amount would flow into budget reserves.

The remaining funds, Martinez said, would be used to create an endowment fund that would generate interest and possibly enhance Redlands' credit rating.

Posted by Andrew Edwards at 10:26 PM | Permalink | Comments (0)

Check out Tuesday's issue of The Sun for an article that explains the reasons why Redlanders and others served by the city's water utility could face higher rates in the near future.

Water will be one issue discussed at Tuesday's City Council meeting, which looks to be a busy one.

Water rates rose by 7 percent this month and by the same rate last year. Municipal utilities/public works commissioner Stephen Stockton said rates could increase by 15 percent or so.

The reasoning behind the potential rate increase is complicated. City Manager N. Enrique Martinez and interim utilities chief Chris Diggs have recommended that the city's water utility reimburse the general fund for using Mill Creek water. The city acquired those water rights after issuing bonds in 1926 which means that the water rights were purchased with taxpayer dollars.

The water utility has its own account, since it makes money by collecting fees The view from city offices is that taxpayers have improperly subsidized water operations since the water utility has not paid for Mill Creek water. Of course, many of the water utility's customers are also Redlands residents and taxpayers so it's almost as if some segments of the public owe themselves money.

It could cost millions for the water utility to reimburse the general fund, either by purchasing or leasing the water. Tuesday, the council is scheduled to vote on consulting contracts for firms that would look at water rates as well as a potential $17-million bond that would allow the water utility to buy Mill Creek water rights.

The upshot of such a reimbursement plan is that water payments would end up going to the general fund, which raises the question of whether city management has proposed the idea in order to establish something like a tax-in-disguise. I expect that question to be asked at Tuesday's meeting.

But the water issue is only part of Tuesday's agenda. Read on to see a few other ideas that are on the day's schedule:

During the 3 p.m. session:

-The City Council is slated to decide whether to ask San Bernardino County supervisors to include land north of the 10 Freeway and west of teh 210 Freeway in the proposed San Bernardino Valley Enterprise Zone. Enterprise zones are intended to catalyze commerce in depressed areas through economic incentives such as hiring credits, tax credits and preferences in state contracting.

During the 7 p.m. session:
-The council will have the option of going on record in supporting Measure J, a $65.5-million bond to finance the completion of Citrus Valley High School as other as other Redlands Unified School District projects as well as measure M, a $500-million bond issue for San Bernardino Valley College.

-The city could launch a red-light camera program. The Police Department wants to use photo enforcement at the intersection of Citrus Avenue and University Street. Between Nov. 26, 1997 and Oct. 31, 2006 the city has recorded 120 collisions at that intersection, including a single fatal crash.

Posted by Andrew Edwards at 7:11 PM | Permalink | Comments (0)

What's worse than getting a ticket?

Getting a ticket that comes with a new fine that's heavier than the old one.

For motorists, the start of the new year means getting busted for a parking violation in Redlands will be more expensive than during the innocent days of 2007. Here's how some fines have changed:

-The penalty for parking a commercial vehicle in a residential district has jumped from $25 to $260.

-Former UCLA football players take note, illegally parking in a handicapped space will now result in a $375 fine. The previous fine was set at $255.

-The price for getting caught storing goods on he street has climbed from $25 to $70. That penalty applies to people who improperly use trailers or recreational vehicles on public streets.

-Failing to have proper license plates (including the front license plate) or proper vehicle registration tags will cost someone $135 instead of the old fee of $50.

The city now contracts with Tustin-based Turbo Data Systems to process parking ticket payments. People who get stuck with a fine can pay online by logging on to www.pticket.com.

Posted by Andrew Edwards at 5:45 PM | Permalink | Comments (0)

The Planning Commission has rejected an idea to establish a new city commission to examine building designs, commissioner Paul Foster said.

"In a nutshell, after a 45 minute conversation, after all the commissioners expressed their views, we decided we didn't want another review body," Foster said.

The Planning Commission decided against creating a new commission Tuesday afternoon. Commissioners had the options of establishing a "technical design review committee" or an "architectural review board." Essentially, both proposals boiled down to ideas to create city panels that would be empowered to make sure new buildings in Redlands look nice.

Both proposals would have added time to the approvals process for new construction and Foster said additional reviews could have also meant that developers would be required to shell out additional fees for the extended process.

Redlands is an architecturally-rich city where Mission Revival,(Burrage Mansion, A.K. Smiley Public Library, the Post Office branch on Brookside Avenue), Classical, (University of Redlands) Victorian (several homes) and Craftsman (more homes) exist in a harmony that harkens back to a Southern California that was built before the era of large tract home developments and shopping malls.

Commissioners haven't given up on the idea of keeping Redlands ahead of the stylistic curve. He said he and two other commissioners, Gary Miller and Eric Shamp, will serve on a subcommittee that will work on architectural standards for future developments.

Foster said it's too early to predict what those standards will be. He envisions the guidelines as something that developers will take into account when they commission architectural designs.

Besides being a city where several architectural styles can be seen, Redlands is also a city where several commissions have been empowered to discuss public business. The city's Web site lists 15 such panels.

Posted by Andrew Edwards at 4:24 PM | Permalink | Comments (1)

Local artist Larry Dierdorff (he has a lot of murals Downtown) unveiled a new work Monday afternoon at A.K. Smiley Public Library.

It's downstairs, in the Friends of the Library bookstore. Click on the image to see the kid's entire face:

Posted by Andrew Edwards at 8:59 PM | Permalink | Comments (0)

The Burrage Mansion's new owner, Lloyd "Tim" Rochford, is willing to listen to pitches from nonprofits interested in helping children at the Burrage Mansion.

"That's going to be helpful to my search," he said in a telephone interview Monday.

Rochford, chief executive of Tulsa, Oklahoma-based Arena Resources, closed a deal to buy the historic Mission Revival estate in late December, and wants to use the mansion as a home for needy kids. He bought the mansion for about $2 million from The Rock Church & World Outreach Center, a San Bernardino-based megachurch.

The deal put to an end to The Rock's proposal to transform the estate in a site for weddings and church functions.

Following the initial publication of Rochford's purchase, representatives from several nonprofits have contacted The Sun in hopes of speaking with Rochford about working at the Burrage.

Rochford has given me his contact information, but has also asked that it not be published. People at charitible organizations who want to make a pitch to Rochford can obtain his contact information by sending an e-mail to me. I can reply with an e-mail letting you know how to reach him.

My e-mail address is andrew.edwards@sbsun.com

Posted by Andrew Edwards at 1:55 PM | Permalink | Comments (0)

As reported in Thursday's edition of The Sun, new Burrage Mansion owner Lloyd "Tim" Rochford plans to use the historic estate for charitable purposes, namely as a place for needy children to stay.

Rochford's comment has spurred considerable interest among local nonprofits who have called me to ask if I can somehow place them in contact with him. I've placed a call to the new owner to ask him if he's interested in hearing pitches from local organizations and if so, if he has a preferred method of being contacted.

I'll post a follow-up blog as soon as I have a reply, so please keep an eye on this site.

Posted by Andrew Edwards at 10:03 PM | Permalink | Comments (2)

Redlanders and other East Valley residents may know the name of Gary Cherms. Cherms appeared before the Redlands City Council in July to ask that the POW/MIA flag be flown prominently at city buildings.

Cherms portrayed himself as a veteran and an advocate for both prisoners of war and the remembrance of America's wartime history. But there could be a big problem. Cherms may have lied when he told the East Valley and military veterans that he wore his country's uniform.

Redlands police spokesman Carl Baker said a detective and police volunteer visited the American Legion Post 106 in Redlands Wednesday to investigate whether Cherms misrepresented himself. California law makes it a misdemeanor to impersonate a veteran with the intent to defraud or to use such a guise to solicit aid or sell property.

Cherms could not be reached for comment late Wednesday. He was a member of Post 106 but Post Commander Ron Riley said by telephone that he plans to send a letter to the American Legion's national leadership to have Cherms' membership terminated.

Riley confirmed details first reported by the Redlands Daily Facts, The Sun's sister paper. He said he learned Cherms faked his veteran's status while Cherms purportedly walking to Sacremento in support of a petition to have the POW/MIA flag flown over state buildings. Riley said Cherms' brother revealed that Cherms was not an actual veteran and that Cherms drove to Redlands on New Year's Eve and confessed to Riley that he never served in the U.S. Marine Corps, as Cherms claimed.

Post 106 gave Cherms a $250 donation to support his petition drive, Riley said. Cherms told Riley that he would continue his journey to Sacramento and it was Riley's understanding Wednesday evening that Cherms was near Visalia.

Riley said post members feel betrayed that Cherms reportedly lied to them about being a fellow veteran. The alleged fakery was also unnecessary because veterans would have supported Cherms' advocacy for POWs if he had simply represented himself as a private citizen.

"His cause is very just, the POW/MIA flag. He could have done that and not said he was a member (of the American Legion) and we would have supported him," Riley said.

Regarding the POW/MIA flag, Cherms won approval for his idea in Redlands, and he also convinced the Yucaipa City Council to support his idea. He also appeared at a Redlands event in September during which he told me he planned to walk to Sacramento on a sojourn to collect signatures in support of a petition to have the black-and-white POW/MIA ensign waive over state government buildings.

Cherms often wore a leather vest with the POW/MIA flag's image on the back. The famous flag shows the sillouhette of an American prisoner under guard in a Vietnamese prison camp. The flag bears the slogan "You are not forgotten."

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