Recently in City finances Category

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- City officials said Monday that a $350,000 budget mistake was a result of miscommunication and honest oversight that should never happen again.

The error prompted a Monday morning meeting with Mayor Pat Morris and other top officials that Mayoral Chief of Staff Jim Morris said involved conversations on how to prevent future errors and make San Bernardino government more efficient.

Jim Morris said the mayor met with City Manager Charles McNeely and interim San Bernardino Economic Development chief Emil Marzullo. City Hall and the EDA have separate budgets and officials have blamed the error on the Finance Department's incorrect assumption the EDA would transfer $350,000 in golf course money to the city's budget.

"Obviously, no people between the two groups sat down and worked out the difference," City Councilman Tobin Brinker said.

Brinker is a member of the City Council committee that deals with financial matters.

He also said City Hall and EDA officials need to improve their information sharing procedures, but that the mistake is also understandable given the many "moving parts" involved in recent financial decisions.

The City Council and other top officials have had to address a series of deficits with four different city managers since 2008.<
Finance Director Barbara Pachon revealed the $350,000 mistake during the Dec. 9 meeting of the council's financial committee while presenting proposals to solve a $4.9 million deficit.

Councilman Rikke Van Johnson, another committee member, said he did not think the error warranted disciplinary action and gave his approval to the current budget balancing proposal.

"I thought it was pretty sound. I like the fact that we're not cutting services," Johnson said.

The miscommunication between City Hall and EDA officials means the phantom $350,000 transfer seems to have been forgotten during the past summer's budget talks. Proposals to balance the city's general fund with EDA dollars were at the center of those discussions.

McNeely, who took on the city's top job June 1, pushed for a budget plan that partially relied on borrowing from the EDA. The council voted in August to borrow $1.3 million from the Agency.

Assistant city manager Debra Kurita said the $350,000 mistake was discovered while city officials scoured financial reports after learning that millions in other anticipated revenues are likely to go uncollected.

The city's earlier revenue projections included nearly $3 million in tax money that city leaders no longer expect to receive through the complicated mechanisms in which tax dollars are passed through state government to cities.

Another significant component of the projected deficit is the recession's effects on the local economy. Business registration taxes in San Bernardino are expected to be $1.1. million less than previously thought.

By Andrew Edwards
Staff Writer

SAN BERNARDINO -- Gloomy economic forecasts and the complexities of government finance have combined to nearly double the size of the city's budget shortfall.

The revelation that the city's financial problems are worse than expected, however, does not mean that City Hall is yet again contemplating the kinds of layoffs or deep service cuts that were made in 2008 and in February of this year.

Finance Director Barbara Pachon revealed Wednesday that San Bernardino's projected deficit is now pegged at about $4.9 million, up from an estimate of nearly $2.8 in November.

Pachon presented city officials' plans to balance the budget to the city's Ways and Means Committee on Wednesday. The panel of three City Council members agreed to recommend almost all of management's plan to the full council.

The finance director explained that most of the new shortfall -- $1.1 million -- is anticipated because city officials expect business registration taxes to fall by that amount as a result of the recession.

City Hall also faces the loss of $675,000 in sales tax revenue, Pachon said, because the state Board of Equalization notified the city that San Bernardino has been overpaid by that amount.
Another aspect of the shortfall stems from a bureaucratic mess-up that happened within San Bernardino government.

City officials had counted on receiving $350,000 in Shandin Hills Golf Course revenues from the San Bernardino Economic Development Agency. Pachon said EDA managers are using that money for their own programs this fiscal year.

"The information that the city wasn't going to get it didn't filter down to Finance," said Pachon.

"It's a shame," Ways and Means chairman Chas Kelley reacted.

Pachon observed that San Bernardino had two temporary city managers this year before Charles McNeely took on City Hall's top job in June.

Despite those problems, substantial service cuts that would affect John or Jane Doe appear to be absent from the plan. City officials are attempting to use city money as creatively as legally possible to relieve pressure on San Bernardino's general fund.

For example, the plan would employ nearly $1.4 in special funds, particularly the city's solid waste and sewer accounts to other uses that Pachon said can be linked to trash collection and sewer work.

Such efforts include graffiti removal, street maintenance and tree trimming where greenery gets in city workers' way.

The need for cutbacks has city officials looking at small numbers. One part of the proposal sought to save $2,200 by foregoing the purchase of portable shelters for employees and patrons at city swimming pools.

Kelley said he wanted to avoid cuts to San Bernardino's long suffering parks department and the committee, which also includes councilmen Tobin Brinker and Rikke Van Johnson did not include this cut in their recommendation to the full council.

The committee also held off on reducing council members' budgets to attend meetings and conferences.

Finance officials anticipate the city's general fund will be about $28,000 in the black if the plan is approved and current projections are on target.

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- The city is once again mired in a budget shortfall. Revenues are reported to be $2.7 million less than projections.

There was no clear picture late Wednesday as to what effects San Bernardino's latest financial problems may have on city services. At this point, however, city leaders do not expect to begin a new round of layoffs.

City Manager Charles McNeely was quoted in the official announcement as saying the bulk of the shortfall is the result of property values falling below what was expected.

Assessed valuations within San Bernardino underwent a year-over-year drop of 17 percent, according to McNeely's office.

"The city had only projected a 6 percent drop and changes like this cause us to have to reevaluate our entire strategy," McNeely said in a press release.

City Councilwoman Wendy McCammack said late Wednesday that news did not surprise her.

"It doesn't surprise me. I think since March we've been spending beyond our means," she said.

The City Council voted (surprise, surprise) 4 to 3 Monday to hire a new communications manager to work for City Manager Charles McNeely.

Council members Dennis Baxter, Tobin Brinker, Fred Shorett and Rikke Van Johnson voted to make the hire. Council members Esther Estrada, Chas Kelley and Wendy McCammack voted no.

The hire, revealed in the request of council action as Heather Gray, is scheduled to begin work Tuesday with a salary of $9,027 per month, subject to be cut 10 percent in accord with the city's across-the-board salary cuts.

How long the new hire gets to stay on the job could very well depend on the outcome of Tuesday's elections.

McNeely, hired on the recommendation of Mayor Pat Morris, has said the new position is vital to get the word out on San Bernardino and plans to pay Gray's salary without using the general fund. Nevertheless, mayoral candidate City Attorney James F. Penman has said the position is a poor use of city funds and has pledged to axe the job from the payroll if he wins.

The City Clerk's Office has confirmed that after this reporter left Monday's City Council meeting to file a budget story by the night's deadline, Councilman Dennis Baxter changed his vote on the budget.

So now the city has a budget, passed by yet another 4-3 vote.

By Andrew Edwards
Staff Writer

SAN BERNARDINO -- The City Council decided to stay out of the vehicle storage business Monday night when members voted to reject a proposal to create a city run-impound yard.

The council voted 6-0 to reject the proposal, which generated strong opposition from San Bernardino towing contractors who expressed fear that the plan would force them to do without revenue sources that they need to survive.

"Certainly, government is the only growth industry in this country," Fourth Ward Councilman Fred Shorett cq observed before casting his vote. "I don't see government being in business to compete with the private sector."

Audience members who attended Monday's council meeting to oppose a city-run impound yard erupted in applause after the council voted.

The impound yard decision moved City Hall closer to establishing a financial plan for the current fiscal year, but the city is still without a budget for the fiscal year that began July 1.

By a one-vote margin, the council decided to delay a decision on the proposed budget for two weeks. The budget proposal lays out $138.3 million in general fund spending.

The council initially moved to delay a decision after City Attorney James F. Penman said his office did not receive related documents in time to complete a legal analysis. However, Second Ward Councilman Dennis Baxter later reversed his vote, and so the budget passed.

The vote scheduled the next budget discussion for Sept. 7. Penman, however, predicted that his office's questions could be resolved in time for the council to have scheduled a meeting for today Tuesday or Wednesday.

The impound yard vote affects the budget because the plan was proposed as a method for the Police Department to recover expenses relating to towing vehicles.

City officials estimated that during the first six months of 2010, the tow yard could ease pressure on San Bernardino's general fund by about $480,000. Since the proposal was rejected, the council voted to dip into the city's reserves to make up the amount.

Finance Director Barbara Pachon said before the council took its vote that San Bernardino has about $2.8 million left in its savings.

The idea was that the Police Department offset its payroll and other costs by collecting fees for holding cars impounded during criminal investigations or seized from unlicensed drivers.

Police Chief Keith Kilmer, who inherited the proposal when he joined San Bernardino on June 1, also said the plan gave police an operational advantage because all vehicles held as evidence would be under a single location controlled by city cops.

But for the Police Department to collect fees, the city's six contract towing companies would have had to lose their ability to collect those fees.

Although the Police Department's business plan would not have entirely cut local firms out of the vehicle storage business, tow contractors said they would not be able to afford to stay in business if a chunk of their income went to city government.

By Andrew Edwards
Staff Writer

SAN BERNARDINO -- The latest round in the City Council's debate over restoring funding to the Fire Department raises the question of how City Hall can restore public services once lean times are over.

If it can be assumed that the recession and its related freefall of tax revenues will end, one question that remains is how San Bernardino officials will choose to restore funding to firefighting and other city operations that have been subjected to cuts.

City Manager Charles McNeely's contract has a provision that could provide a venue for city officials and the public to begin crafting a plan for a post-recession San Bernardino. McNeely's employment agreement mandates that he convene annual workshops to discuss city's priorities.

McNeely started with the city June 1 and is obligated to hold the first such meeting within his first three months on the job.

Sixth Ward Councilman Rikke Van Johnson said he wants to meet for the workshop soon after the city has a budget plan in place. San Bernardino does not yet have a budget for the fiscal year that started on July 1 and the council could vote on a budget plan Monday.

"I'm willing to let him (McNeely), take the lead on how we're going to work," Johnson said.
McNeely could not be reached for comment by Wednesday's deadline.

He has previously said that he plans to provide the council with a list of recommendations on how to enhance city operations and wants to change San Bernardino's budget documents so that it's possible for decision makers and the public to easily understand how much money is being set aside for city programs.

Seventh Ward Councilwoman Wendy McCammack said Wednesday that she wants the city to practically restart from scratch. She said the city should craft its next budget by knocking funding for all city operations to zero and then planning to spend available dollars where the money is most needed.

"You need to get back to the basics of running a city," she said.

The Fire Department issue, just one of the city's problems, goes back to February, when the council voted to delete eight firefighting positions in an attempt to save up to $1.6 million. No firefighters were laid off when the jobs were deleted, as the positions were filled by firefighters working overtime.

As of Monday, Fifth Ward Councilman Chas Kelley -- who initially agreed to the budget cuts -- has made three efforts to reverse that decision.

He most recently proposed Monday during a budget workshop Monday that the city borrow more than $1 million from the San Bernardino Economic Development Agency to put the eight firefighting jobs back on the city payroll. Kelley's council rejected his bid by a 4-2 vote.

Fire Department cuts are developing as a campaign issue as the November election approaches. Kelley, whose seat will not be up for election until 2011, said Wednesday that his continued attention to the issue has nothing to do with setting up a political issue for November.

Kelley also said he is not catering to the firefighter's union, which has given $12,500 to his campaign between Jan. 1 and June 30. Instead, he said his concern rests on his lack of confidence that a majority of the council is willing to make Fire Department funding a priority as fire season approaches.

"How many years do we have to wait to restore these positions," Kelley asked. "If you can hobble along ... they never restore it. They just put more work on other people."

Kelley's plan to borrow from the EDA follows McNeely's proposal to borrow $1.3 million from the same agency, which is responsible from redevelopment.

McNeely initially proposed taking a $5.4 million loan from the EDA, but curtailed those plans after state officials decided to borrow redevelopment money from across the state to balance Sacramento's budget.

San Bernardino's EDA could lose about $12 million, but whether Sacramento's plan survives challenges remains to be seen.

Whatever happens, Johnson, Second Ward Councilman Dennis Baxter and Fourth Ward Councilman Fred Shorett said they disagreed with Kelley's proposal because they don't want to run up additional debt.

Whether the planned workshop helps the council get closer to crafting plans to restore funding to public safety and other city services remains to be seen.

By Andrew Edwards
Staff Writer

SAN BERNARDINO -- It may turn out that the City Council can still avoid a repeat of the kinds of painful budget cuts that made previous attempts to stay out of the red such a strenuous process.

City Manager Charles McNeely showed the City Council revised budget proposals on Monday that continues to rely on borrowing, accounting shifts and spending cuts that trim -- but do not eliminate -- city operations.

Also on Monday, Fifth Ward Councilman Chas Kelley made a renewed effort to convince his colleagues to restore funding to eight firefighting positions that were deleted from the budget in February.

Ultimately, Monday marked the third time the council rejected a bid to restore firefighting positions, although Monday marked the first occasion that the council took an up-and-down vote instead of relying upon procedural tactics to block Kelley's plan.

McNeely's revised budget plan calls for City Hall to borrow $1.3 million from the San Bernardino Economic Development Agency. The EDA is responsible for redevelopment projects and has its own budget.
The city manager had previously proposed borrowing $5.4 million from the EDA that number has shrunk after Gov. Arnold Schwarzenegger and the Legislature agreed that Sacramento will "borrow" -- or "raid," depending on one's point of view -- local governments' property tax and redevelopment funds to balance California's budget.

"We are very confident that we will be able to get that $1.3 million (loan)," McNeely said.

San Bernardino officials expect to lose about $2.9 million in city revenues to the state. McNeely now proposes to make up that very amount by borrowing from California Communities, a joint powers authority sponsored by the League of California Cities and California Association of Counties.

The EDA stands to lose about $11.9 million to Sacramento, but San Bernardino officials discussed that number as a potential loss with the expectation that the state's move would be challenged in court.

Voicing the possibility that the EDA could afford to lend city government more than the proposed $1.3 million, Kelley asked that the city borrow more from the EDA to finance eight firefighting positions that were deleted in February's budget cuts.

Such a move would have added more than $1 million to the loan, but Kelley said Fire Department needs to be a priority and that better funding sources should become available after the current recession ends.

"Times are going to get better," he said emphatically.

Kelley's proposal went down by a 4-2 vote. Seventh Ward Councilwoman Wendy McCammack was the only council member to support Kelley. Councilmen Dennis Baxter, Tobin Brinker, Fred Shorett and Rikke Van Johnson voted no.

Johnson said the council should convene at another time to figure out a way to fund the Fire Department instead of suddenly agreeing to take a loan to pay firefighters.

"We can't have these discussions now about borrowing money to pay for stuff. That's just ridiculous," he said.

Other proposals in McNeely's new plan include:

- Shifting $500,000 in street maintenance costs from the general fund tk to the city's share of Measure I transportation financing.

- Using $200,000 in the Police Department's share of development impact fees to make car payments on 28 patrol cars

- Trying to save $900,000 by allowing various city jobs to remain vacant and negotiating 5 percent concessions from city contractors.

Cost-savings proposals that have been a part of discussions throughout this year's budget talks include:

- Negotiating with health insurance providers to save $350,000 on health insurance premiums. This could include higher co-pays for city employees.

- Cutting $200,000 worth of street-striping work from the budget.

- Reorganizing the Fire Department's top administration in a plan that is projected to save $223,000.

The council could adopt a budget for fiscal 2009-10 at its Aug. 17 meeting.

Rep. Joe Baca's office reported Tuesday that the city will receive $5.4 million from the U.S. Justice Department to hire police officers.

Within San Bernardino County, Chino, Colton, Ontario, Redlands and Rialto were also awarded funds, according to the Justice Department. The money can be used to keep officers on a city police force for three years, and then cities are on the hook to pay the new cops' salaries.

"In three years, with hopefully the economic recovery underway, revenue from sales tax and especially Measure Z, would pick up that funding," Mayoral Chief of Staff Jim Morris said.

Morris said San Bernardino will be able to use the grant to hire 16 officers.

San Bernardino had asked for more than $6 million to fill 22 Police Department positions that have been allowed to go unfilled as a result of budget cuts.

Andrew Edwards, Staff Writer

SAN BERNARDINO - The question of whether the city will begin to store impounded vehicles as part of a plan to balance its budget remains undecided after the council's Ways and Means Committee decided Wednesday to wait to get more information on the idea.

City officials say the establishment of a tow yard is not envisioned as a profit-making enterprise, but would allow the city to charge fees for impounded vehicles that could be used to pay for existing city expenses. Those opposed to the plan say the proposal amounts to an attempt by the city to balance its books by taking business away from San Bernardino's private towing companies.

"We just do not feel that any - any - department should be earning revenue on the backs of our businesses," San Bernardino Area Chamber of Commerce executive director Judi Penman said while addressing the committee.

The committee's three members, Councilmen Chas Kelley, Dennis Baxter and Tobin Brinker, received the business plan for the proposal shortly before the meeting began. Baxter had questions about the proposal's financial plan and Brinker wanted to hear testimony from an official from another city, he suggested Colton, which already has a tow yard.

The issue is slated to return to the committee Aug. 5.

The Police Department's business plan reports the tow yard could generate nearly $2.2 million in revenue during the first month of 2010. The yard is projected to begin operations at the start of
that year. Start-up and operation expenses, and a decline in franchise fee collections from the city's six towing contractors are projected to be higher than that number. The yard is expected to lose nearly $21,000 over the first six months of its operation.

In response from a question from Baxter as to when the program would start to make money, Finance Director Barbara Pachon said the objective is to move city costs from the General Fund to the tow yard's own budget.

Pachon said the tow yard would allow for about $700,000 in city expenses currently charged to the General Fund to be charged against the tow yard's revenue stream.

"There is still savings in this program to the General Fund," Pachon said.

In San Bernardino, there are six towing companies that have contracts with the city to tow and store vehicles. According to the reports providing to the committee, members of those firms have told officials that they earn about 45 percent of their income from storage fees charged to people recovering their vehicles.

Police officials report that they have sought to minimize the affect on tow companies by changing the city's franchise fee to a 10 percent charge on firms' business instead of the current monthly fee of $6,473. The city would also allow private companies to store some vehicles, including those that are hauled away from crash scenes. Vehicles impounded for legal reasons such as a six-month lapse in registration or driving without a license would be locked up in the city yard.

The tow yard is but one uncertainty in the efforts to draft a budget for the fiscal year that began July 1. The city entered the budget process expecting to face a $4.8 million deficit, and could lose an additional $5 to $6 million if California legislators agree to a proposal to borrow funds from local governments to balance the state's budget.

City Manager Charles McNeely said after Wednesday's meeting that he is still proposing to borrow about $5 million from the San Bernardino Economic Development Agency if that money is needed to balance the city's budget.

If the council ultimately chooses not to create a city-run tow yard, McNeely said city officials would have to figure out about $400,000 worth of additional budget cuts or use the city's scarce reserves to stay in the black.

City Manager Charles McNeely reports that the new budget deal recommended by Sacramento's Big 5 would cost $5-6 million to the city and San Bernardino Economic Development Agency Budgets.

California's current budget proposal would take/borrow/raid (do your own spin here) billions from local governments from Calexico to Crescent City and points in between. The state would balance its budget by using $1.7 billion in local property tax and sales tax revenues through the state's Prop. 1A formula, $1 billion municipalities' share of gas tax dollars and $1.7 billion from redevelopment agencies' funds for low-income housing projects.

"According to state lawmakers, funds loans from municipalities must be paid back, with interest, in three years. But local leaders say they need the money now, having endured their own excruciating budget cuts triggered by steep declines in local sales tax receipts, the decline in housing values and escalating foreclosure rates," reads a release from McNeely's office.

A 4 to 3 vote clears the way for City Manager Charles McNeely to hire a communications manager and other positions as part of move to reorganize his office.

Council members Dennis Baxter, Tobin Brinker, Fred Shorett and Rikke Van Johnson voted in favor of the city manager's plan. Council members Esther Estrada, Chas Kelley and Wendy McCammack voted against the move.

The council was unanimous however, in a related vote to set the salary for the currently vacant assistant city manager's position and create a senior administrative analyst position. Whoever is hired to the latter job will be responsible for writing up grant proposals and other "complicated staff work."

Council members cast their votes Monday night.

The job description for the newly-approved communications manager's position establishes that whoever gets that job will be responsible for communicating city policy with the media, business community and others. The staffer will also be responsible for working with employees in other city departments to develop a marketing plan for San Bernardino.

The communications manager's lucrative compensation package and the fact that the city's Personnel Committee had recommended against creating the communications manager's position both figured in Monday's debate.

The future communications manager is slated to earn a pay package worth $8,850 to $10,757 per month. McNeely pointed out that the compensation package for this position, as well as that for the assistant city manager's job and senior administrative analyst's position, will not draw on San Bernardino's stressed general fund.

However, Estrada said she thinks creating the position still sends the wrong message to city employees who have been laid off in recent cost-cutting moves.

"It's a little hard for me to consider this request in light of the fact that we had to lay off people, furlough people ... have City Hall closed on Friday," she said.

Brinker said the city should invest in hiring an employee dedicated to speaking on behalf of the city.

"I know it is a lot of money, but in the long term, the benefits will be there," he said.

The Personnel Committee consists of the very council members who previously voted against the creation of the communication manager's committee. Kelley and McCammack objected to having the issue taken to the full council after their votes, while McNeely said he respected their opinions but thought the full council should have a say.

McNeely also said a citywide spokesperson would be better able to handle PR duties than the heads of city departments, who were hired to for skills specific to their departments rather than communications.

San Bernardino's City Charter establishes that the mayor is officials the city's spokesperson. City Attorney James F. Penman said he didn't think the creation of the comminications manager's position was illegal, but that the proper way to place this duty within the City Manager's Office would be through a voter approved charter amendment.

McNeely said having hiring a city spokesperson work for his office, as opposed to the elected mayor, would depoliticize the job.

City Manager Charles McNeely writes in an email that a credit agreement between City Hall and the San Bernardino Economic Development Agency has not yet been drawn up.

"No, an agreement has not been drawn up at this point. Staff recommendation was to move forward with the adoption of the budget and finalize the terms of the agreement between the City and EDA during the next few weeks," McNeely wrote. "At this point I am told that it will take several weeks to complete this before it is presented to the City Council after which I am hoping we can move forward with the budget adoption."

The EDA is officially separate from the city and has its own budget. McNeely has proposed that the city balance its budget by borrowing up to $5.4 million from the EDA. City Attorney James F. Penman said during a budget workshop Monday that his office needs more time to review the credit proposals to determine if it conforms with California law. The council did not adopt the budget Monday, postponing that decision to an undetermined date later this month.

In a memo written to the the Mayor and CIty Council dated June 26, McNeely wrote that he expected to draw $2.4 million that would be repaid this year and that the credit agreement would include options for two one-year extensions.

Penman has said one of his concerns is that the extensions could be contrary to state law requiring the money to be repaid in a single year. He has also said that he has not seen any tentative agreement between the EDA and City Hall for a line of credit and first learned of details regarding the proposal morning of Monday's budget meeting.

The City Council did not approve a budget Monday, but did OK a funding shift designed to keep two city swimming pools open for the summer, which has already gotten pretty hot.

The council shifted $25,000 from the Mayor's Office that had been set aside to support a preschool program to Parks, Recreation and Community Services to run the pools.

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- The City Council chose to wait until approving its budget for the coming fiscal year after the City Attorney questioned the legality of some aspects of current proposals.

The council voted unanimously Monday night to adopt a continuing resolution that maintains spending city business for July at levels provided for in the city's current budget.
The city's next fiscal year begins Wednesday.

City Attorney James F. Penman said during a budget workshop Monday that his office needs time to review whether proposals that include the borrowing of money from the San Bernardino Economic Development Agency comply with state law.

Monday's budget workshop was the first time Penman raised these concerns in a public forum. City Manager Charles McNeely introduced the preliminary budget and proposal to borrow $5.4 million from the EDA during a June 4 public meeting. The council has met a total of four times, including Monday, to discuss the budget.

But Penman said that information his office received Thursday and Monday have convinced him that San Bernardino's legal team needs more time to examine budget proposals.

McNeely said after the meeting that Monday was the first time he learned that Penman had legal questions regarding the budget. McNeely also said he did not see the proposals as being out of the ordinary realm of city finances.

During Monday's meeting, Penman said a news report regarding the anti-tax Howard Jarvis Taxpayers Association gives city officials a reason to be cautious.

The foundation is looking for a plaintiff in Redlands who would be interested in challenging that city's recent budget tactics. Redlands' council recently accepted a plan that would have the effect of directing residents' water and sewer payments to Redlands' general fund instead of its utilities.

Penman also allowed the possibility that EDA funds may not have always been used properly in years past.

"If you're asking me, have we broken the law? Perhaps," Penman said.

Seventh Ward Councilwoman Wendy McCammack, who joined Penman in questioning the budget plan, said Monday's meeting was the first time council members were given time to raise substantive issues.

There was additional controversy Monday night when several representatives of San Bernardino towing companies and other business community representatives rose to speak against a proposal to create a city operated tow yard.

San Bernardino officials do not yet have a business plan for a city-operated tow yard, but project that the city could take in about $680,000 in net revenues if a yard opens Jan. 1, 2010. Police Chief Keith Kilmer also said that a city-run yard would allow police to control cars that are being stored as evidence.

But opponents said creating a city-run yard would steal business from the city's six tow companies, which pay a franchise fee to the city.

"Are we saying we have a zero tolerance policy, we're just going to go out and impound cars to balance the holes in the budget," one speaker asked?

San Bernardino's preliminary budget, which could be approved at an unspecified date in July, sets aside more than $142.7 million in general fund spending over the next 12 months.

The budget hearing that was scheduled to be held Wednesday has been postponed.

Councilwoman Esther Estrada said the meeting is now set to be held June 29.

"I guess we're still looking for money, and the more time we have is more time to look," Estrada.

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- City Attorney James F. Penman is asking to have hundreds of thousands restored to his budget, saying that its impossible to eliminate the costs of defending the city in court.

Penman is asking the council for more than $460,000 above the amount laid out in the preliminary budget to pay outside attorneys.

"There is no guarantee that this amount will not increase as events in FY 09/10 develop," Penman wrote in a July 16 memo to the City Council.

If the council grants Penman's request, it will continue a series of actions that have diminished the impact of budget cuts on the City Attorney's Office. The council has already taken action to restore $400,000 that was sliced from Penman's budget for the current fiscal year.

In an interview Tuesday, Penman said he did not agree with budget cuts, "everybody knew which wasn't going to work."

He described the cuts as a "game" to make it appear as if his office lost funding. He maintained it's impossible for his office to reduce the work of attorneys who are obligated to stand before a judge.

"When someone files a suit against the city, you have to appear in court," Penman said. "There's no grace period."

When the council met June 16, Penman placed about three dozen pending cases on the closed session agenda. He and council members would not discuss closed session discussions, but the move appeared to be a tactic to call attention to outside attorney's case load.

City Manager Charles McNeely said Monday he anticipates the council will agree to Penman's request.

"I would like to know which cases Mr. Brinker would like to settle, and what he's willing to settle for," 7th Ward Councilwoman Wendy McCammack said.

Council members Esther Estrada, and Rikke Van Johnson also seemed inclined to agree with the City Attorney in comments made Monday.

"Let's say we don't have an experienced lawyer to defend against police brutality cases .. you could lose the case and you end up losing millions of dollars," Estrada said.

Penman said many of the cases for which he hires outside attorneys involve allegations of police misconduct or lawsuits filed by police officers against the department.

He said he and employees have agreed to participate in budget cuts by taking 10 percent pay cuts without taking Fridays off, as other city employees have done. Penman did not know off hand how much money the pay cuts have saved the city.

Third Ward Councilman Tobin Brinker has emerged as the most skeptical member of the council in regards to Penman's request.

Brinker said that since Penman is an elected official, he is entitled to deference from the council when it comes to how he spends his office's money. But he also said there is a matter of equity between Penman's department and other city agencies that have endured budget cuts.

"Every department has been sliced and diced," Brinker said in an interview Monday. "If we give money to his department, other departments will have to take more of a cut."

Penman said his office has already raised more than the requested amount from fines collected through citations issued by his office's investigators.

The council is scheduled to meet Wednesday and could the city's budget for the fiscal year beginning July 1 at that time.

This has been a pretty good week for Parks, Recreation and Community Services, a department that seemed to barely escape elimination during February's budget cuts.

The council voted Monday to retain staffers who were set to be laid off and today, city officials announced that two swimming pools that were expected to be closed for the summer could be open to the public.

The City Council voted Monday to nix a $20 fee that would have been charged to motorists who go to the Police Department to have fix-it tickets signed off.

The fee was approved May 18 as part of a resolution authorizing many fee increases for a wide range of city services. The council decided to reverse that decision at its June 1 meeting and made it official on Monday.

The City Council is scheduled to vote Monday on a plan designed to keep parks employees working for the city.

The plan includes a move to restore 11 parks maintenance jobs to the budget and have park work performed by city workers instead of contractors. Parks and recreation chief Kevin Hawkins' request for council action reports that this change could save the city about $25,000.

Combined with other personnel moves, Hawkins reports the city can achieve $1.1 million in savings.

In February, then- interim City Manager Mark F. Weinberg proposed a budget cutting plan that would have eliminated San Bernardino's parks maintenance staff. At the time, the City Council preserved a dozen jobs by having city employees perform landscaping jobs, such as mowing the grass that grows on medians, that were previously done by contract workers.

Since February's round of budget cuts, parks employees say there have only been six city employees who were actually charged with taking care of San Bernardino's parkland.

This should generate some interest:

While discussing the San Bernardino Economic Development Agency's budget with reporters Tuesday evening, interim EDA chief Emil Marzullo said the agency has spent around $1 million annually to pay for security at Carousel Mall.

"It's the safest place in the city. There are three cops there," Marzullo said.

Readers who haven't been to Carousel Mall lately are probably not alone. Marzullo said the mall generates less than $60,000 in sales taxes per year, but San Bernardino's government is locked into a contract with mall property owners that assumed the mall would be a bustling center of commerce with three anchor stores.

Marzullo said the contract is complicated, but the EDA is working to change the deal to free up money.

There are currently no anchor stores at the mall. Recent talk about Carousel Mall has centered around the possibility that city and county officials could team up to do away with the moribund shopping center and build a new civic center that would ideally become an iconic, freeway visible building for downtown San Bernardino.

The EDA's preliminary budget for 2009-10 shows about $338,000 outlined for security costs at the mall.

San Bernardino's budget hearings are scheduled to resume this afternoon.

The city faces a $4.8 million deficit and the possibility of Sacramento borrowing about $3 million to cover its own, uh, budget.

City Manager Charles McNeely has proposed about $2.4 million in budget deficits and the borrowing of $5.4 million from the San Bernardino Economic Development Agency. The EDA has a separate budget, and this reporter expects that today's discussions will include an examination on how the borrowing plan would affect the EDA's projects and finances.

The meeting is set to begin at 4 p.m. in the EDA boardroom in the EDA's building at 201 North E Street.

Commerce has dropped precipitously in San Bernardino.

City sales tax data show the city's sales tax revenue peaked at about $36.8 million in 2005-06. That figure dipped to an estimated $24.7 million for the fiscal year ending June 30.

San Bernardino's preliminary budget anticipates only $24.3 million in sales tax receipts for the upcoming fiscal year.

Sales taxes are only one of the city's money sources, but less cash has resulted in budget cuts enacted last summer and in February that deleted 173 jobs through layoffs and attrition. Those and other cuts were intended to slice about $51 million in spending.

City Manager Charles McNeely's budget plan for fiscal 2009-10 does not call for layoffs or the kinds of drastic cuts that the city made during the past summer or February.

McNeely and other city officials discussed the proposals during a budget workshop Thursday afternoon. Although city administrators' are not predicting the kind of economic recovery that could lead to a rebound in tax revenues, the meeting's atmosphere was free of the kind of doom and gloom that permeated previous rounds of money talks.

San Bernardino faces a projected $4.7 million deficit and also the chance of Sacramento taking (technically, borrowing) $3 million.

The plan proposes $2.4 million in spending adjustments, much of which could be accomplished by using special funds to reinforce the general fund. For example, City Hall proposes to use $200,000 from San Bernardino's cultural development fund to offset library costs.

New city manager Charles McNeely said he wants to spend three months getting to learn San Bernardino before proposing major changes to how San Bernardino officials go about their business.

"They'll be fairly significant, I can assure you," McNeely said Tuesday during an interview in his City Hall office.

McNeely and the City Council are set to meet at noon to open budget discussions. McNeely said Tuesday that San Bernardino faces a deficit in the $4 to $5 million range. The situation could become about $3 million worse if California state officials borrow local property tax dollars from local governments to balance Sacramento's budget.

San Bernardino's first budget workshop for the upcoming fiscal year is now scheduled to begin at noon Thursday in the Economic Development Agency conference room, 201 North E Street.

The City Council on Monday approved a package of concessions from city firefighters that's expected to result in $1.4 million in savings for the city over 13 months.

The council voted 7-0 to approve the deal.

Police and general employees have previously agreed to concessions packages. Previous attempts to negotiate a deal with firefighters stalled in February when fire union leaders accused former interim City Manager Mark F. Weinberg of attempting to change terms in the written deal after reaching a verbal agreement.

Weinberg said in a March 3 posting on SB Now that he was worried about an upsurge in overtime costs if firefighters were able to take leave given in exchange for a pay cut before the end of the 2009-10 fiscal year. Whenever a firefighter takes time off, is ill or injured, other firefighters cover the shift at overtime rates.

The waiting period is included in the deal approved Monday.

Key provisions of the deal are:

-Firefighters agree to give up 8.7 percent of their base salary via a line item deduction on their paycheck.

- Firefighters current collective bargaining agreement is extended one year, to expire June 30, 2010.

- Firefighters will earn 4 hours of paid leave time per week, but will not be able to take that time off until July 1, 2010. The time off will not have cash value unless firefighters retire before that date.

- Firefighters agree to sell back 48 hours of vacation time before June 30 and another 48 hours before the end of the next fiscal year. (The item was not discussed during the meeting, but this appears to be a way to reduce overtime expenditures, as firefighters will not have to have colleagues cover their shifts at overtime rates if they take less time off.)

- There are also provisions related to firefighters' medical plans, including a medical benefit cash-out program.

The full agreement can be accessed by reading the council's agenda at www.sbcity.org.

SB Now needs a tardy note for this post, which should have gone up last week but somehow fell by the wayside.

The City Council voted on May 18 to adopt a resolution calling for many fee increases. The council dropped a proposed fee increase that would have made it more expensive for pet owners to reclaim animals that had been apprehended by Animal Control.

Council members Esther Estrada, Dennis Baxter, Tobin Brinker, Fred Shorett and Rikke Van Johnson voted for the fee increases. Council members Chas Kelley and Wendy McCammack voted no.

Approved fee increases include the following:

- Code Enforcement's administrative fee for weed abatement on vacant lots increased from $110 to $275 and another administrative charge for weed abatement increased from $19.50 to $100.

- Code Enforcement's vehicle tow release fee increases from $215 to $230.

- Development Services is creating a fee for $143 fee for NPDES business inspections. NPDES stands for National Pollutant Discharge Elimination System, and is a federally mandated program intended to reduce water pollution.

- Facilities Management's fee for commercial vehicles parking in a prohibited area increases from $65 to $260. Several other parking fees are increasing by $5 to cover costs related to the state's courthouse construction program.

- The Police Department has a number of new charges, including a $47 fee for the release of photographs on CD and a $20 fee to sign off a traffic citation.

- Police will also charge more for false burglary and robbery alarms. The fees become progressively more expensive with each false alarm.

The full list of fee hikes can be viewed at the city's Web site.

Mayor Pat Morris and Third Ward Councilman Tobin Brinker both said during Monday's City Council meeting that they believe the passage of budget-related ballot measures is vital for San Bernardino's financial stability.

"The defeat of these initiatives will no doubt have a substantial negative impact on our city," Morris said.

The Special Election is today. The six propositions include 1A, which extends taxes while also increasing the governor's ability to cut spending and setting new rules for California's "rainy day" fund. Another proposition, 1C, would allow Sacramento to borrow against future Lottery revenues.

Schwarzenegger has said the propositions are worth about $6 billion to the state, which is in bad shape whether they pass or fail. California faces a deficit of about $15 billion even if the ballot measures pass.

Recent polling suggests that voters will reject the propositions, save for a measure that would prohibit legislators from increasing their own pay during deficit years.

Gov. Arnold Schwarzenegger has threatened to borrow money from local governments if the initiatives do not pass.

Acting City Manager Lori Sassoon has said San Bernardino could stand to lose about $3 million if state government borrows property tax dollars. The council adopted a resolution Monday declaring the city will suffer fiscal hardship if Sacramento takes local money to balance the state's budget.

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- The City Council has effectively tossed a proposal to privatize waste collection services into the round file.

The council on Monday passed on a proposal from the city manager's office to hire a consulting firm to examine whether outsourcing trash services would make financial sense.

City politicos' lack of interest in the privatizing option suggest that council members -- at least for the time being -- have reached a point where they are reluctant to address San Bernardino's budget problems by reducing city services.

"We do so much outsourcing already," First Ward Councilwoman Esther Estrada said Monday. "I'm really concerned we're going to start outsourcing all services? Are we going to contract with the Sheriff's Office for police?"

The idea of outsourcing Waste Management operations surfaced earlier this year when then-interim City Manager Mark Weinberg suggested privatizing as a means to shore up the city's finances with a one-time cash infusion and possibly a recurring franchise fee.

The idea was brought forward while San Bernardino officials were attempting to solve a $9 million deficit. Acting city manager Lori Sassoon brought the idea back for discussion, saying Monday that the city's financial problems require officials to examine all of their options.

"It is not a pleasant thing to be looking up, but I think your options are extremely limited at this point," Sassoon said.

But the possibility stirred up strong emotions among city employees. Dozens of city workers wearing orange Public Services uniforms showed up to Monday's council meeting in hopes of keeping their department as part of the city.

Public Services employee Charles Greenwood contended that waste hauling services would decline if San Bernardino went forward with outsourcing.

"You own us ... if you vote for privatizing, you have no say," he said.

Fifth Ward Councilman Chas Kelley made a motion to approve Sassoon's recommendation, but 1st Ward Councilwoman Esther Estrada withdrew her second of his motion after discussion.

The proposal died when no other council members offered another second.

The City Council acted again on Monday to reject 5th Ward Councilman Chas Kelley's attempt to beef up Fire Department staffing.

Kelley wanted to reverse budget cuts made in February that had the effect of taking a fourth firefighter off some city engine companies. A three-person firefighter crew cannot enter a burning building without backup from another engine company unless it's immediately obvious that someone needs to be rescued.

The February cuts eliminated funding for 12 firefighting positions, and eight jobs that had been filled by firefighters working overtime were deleted from the payroll. Kelley proposed using part of $1.4 million in concessions that the firefighters union approved Monday to finance the restoration of the jobs to the city payroll.

The stage was set for the council to debate what levels of public service the city could afford. That didn't happen. Instead, Third Ward Councilman Tobin Brinker rushed to introduce a motion to table Kelley's proposal. A motion to table means that the council drops discussion of an issue without setting a time to resume talks.

This is what ultimately happened. The council voted 4-3 to stop talking about Kelley's proposal. Brinker and councilmen Dennis Baxter, Fred Shorett and Rikke Van Johnson voted to table the proposal.

Kelley, McCammack and Councilwoman Esther Estrada voted against Brinker.

The vote followed a raucous argument over whether the council had the ability to vote on Brinker's motion. Several firefighters also argued in favor of Kelley's proposal and also agreed with Kelley that council members ducked their responsibilities by refusing to debate the merits of the proposal.

"Which of your constituents said 'Go table that?,'" asked fire union vice president Jim McMullen said from the podium reserved for members of the public.

Brinker said after the council voted that he thought it was pointless to debate Kelley's idea after the council chose not to support his idea during the April 20 meeting.

"We talked about it last meeting. There was no reason to talk about it again," Brinker said.

Seventh Ward Councilwoman Wendy McCammack, who supported Kelley's proposal, tried to introduce her own motion that would have given the council a chance to discuss the merit's of Kelley's proposal. And that's when people got angry.

Mayor Pat Morris sided with Brinker. He argued that the council had to vote on Brinker's move to end discussion first. City Attorney James F. Penman, raising his voice, disagreed. Penman countered that council rules require that the body to consider a substitute motion before considering a motion to table.

Boring stuff, but boring stuff that had an impact on city policy, since the council ended up doing things the way the mayor wanted to. For a while, Morris wanted to immediately move forward the motion to table without taking time to let the public step up to the city microphone and weigh in.

After a heated exchange between Morris and Penman over what the council's rules require, Estrada took exception to the possibility that the public might not have been afforded an opportunity to address their representatives.

"I would hope that we would not topple the Freedom of Speech here, your honor," Estrada said.

Morris changed his mind after aide Peggy Hazlett stepped to his seat with a message. McCammack angrily charged that the mayor only allowed the public to speak after relying on the advice of his son, mayoral chief of staff Jim Morris.

It was then that several firefighters spoke in favor of Kelley's idea. Fire union spokesman Tom Rubio said city officials were wasting their time in argument when they should be attempting to figure out how they can finance fire protection.

"We have very resourceful people on this Fire Department. We've done it before. We can do it again," Rubio said.

Rubio said the city could apply for grants to increase engine company staffing. Fire Capt. Richard Lewis later stepped to the microphone to contend that the city could ask San Bernardino voters for a charter amendment to mandate that engine companies have four-person crews.

Because of Brinker's motion, Kelley, McCammack and Penman had to speak from the public microphone instead of from the council dais.

"Tonight ladies and gentleman, democracy was thwarted, deliberately," Kelley said from City Hall's public comment podium.

"The candidates, and I said candidates, on that dais would have had a chance to explain to their residents why they thought my motion was wrong," he said later.

McCammack also accused Pat Morris of seeking revenge against the fire union since they did not support his candidacy.

Firefighters erupted into applause when speakers agreed with theirs and Kelley's positions. At least one man in the audience shouted "withdraw the motion" to Brinker.

Speaking from the public podium, Penman put forth that the speed with which Brinker put forward his bid to end debate meant that his action was prearranged. Reached in the City Hall lobby, Penman said he had no evidence that more than three council members discussed the issue before Monday's meeting.

It's illegal in California for a majority of any city council to privately discuss official business outside of a proper meeting.

Brinker said after the vote that he did not prearrange the outcome of Monday's discussion.

Asked if he spoke with council members during a meeting break, Pat Morris held up his hands but any spoken response was not heard by this reporter before Hazlett told this reporter to leave the dais because the council was returning to session.

Reached by telephone for clarification later Monday night, Jim Morris said "the mayor may have had talked to some council people in general, but the allegation that he drove this issue is completely and utterly ridiculous.

"He's got no agenda here," Jim Morris added, saying that the mayor's goals Monday night were to foster an orderly discussion, and that the decision on whether to debate Kelley's proposal was made by a council majority not the mayor.

Jim Morris also said the mayor has no interest to offend firefighters.

"What interest does he have other than a balanced budget?," Jim Morris asked.

Monday's City Council agenda includes a request from acting City Manager Lori Sassoon's office to raise several city fees.

It's too soon to report when the fees could go into effect. I found out in the middle of typing this that a decision is likely to be delayed until another date. Sassoon wrote in an email that the council is not expected to vote until its May 18 meeting.

The fee hikes are projected to lead to collections of $770,000 during the fiscal year that begins July 1. Department managers were asked to look for potential fee revenues as a means to balance the city's budget.

Proposed fee increases include the following

- Animal Control's apprehension fee would rise from $40 or $80 (for altered or unaltered animals, respectively) to $100.

- Code Enforcement's weed abatement administrative fee would rise from $19.50 to $100. The weed abatement fee for vacant lots would rise from $110 to $275. These fees have remained static since 1996.

- Code Enforcement's tow release fee would rise from $215 to $240.

- Development Services would charge a new a inspection fee for temporary certificates of occupancy. The fee would be set at $541.50

- Facilities Management's fine for illegal commercial vehicle parking would rise from $65 to $260.

- Police Department's fine for false robbery alarms would rise from $100 to $200. Subsequent false alarms would generate higher fees.

*Bonus point to anyone who knows the source of the quote in the headline.

The list of proposed fee hikes can be viewed online.

The committe that looks at San Bernardino's use of Measure Z sales tax revenues reports to that almost all of the money collected from the measure went to the Police Department.

From July 1, 2007 to June 30, 2008, the city spent more than $4.8 million in Measure Z revenues on Police expenditures. About $93,000 went to fund crime prevention efforts under the banner of Operation Phoenix.

Measure Z is a 1/4-cent sales tax that voters approved in 2006 to finance public safety. Voters also approved Measure YY, which was merely an advisory measure to show voters' intent that revenues be used to fund the Police Department as well as youth programs such as after-school activities and anti-drug education.

The data was presented to the council Monday.

The Sun has had a few articles recently dealing with the issue of whether the city should restore funding to a dozen firefighting positions that were eliminated during this winter's round of budget cuts.

No firefighters were laid off, but eight of those positions had been filled by firefighters working overtime shifts. Having those eight positions on the books allowed the Fire Department to put four firefighters on fire engines that now have only three-person crews. Having three firefighters on an engine means that firefighters have to wait for backup to enter a burning building unless it's obvious that someone needs to be rescued. Otherwise, firefighters operate on a two-in, two-out principle.

Fifth Ward Councilman Chas Kelley wanted to restore funding, but other council members would not join in his effort at Monday's meeting.

One aspect of that meeting that did not make its way into printed stories was deputy city attorney Jolena Grider's suggestion that the city use Administrative Civil Penalties, called ACP's in City Hall's alphabet soup, to help fund the department.

ACPs are a relatively new fine mechanism that the city can use to assess penalties on those who violate any provision of San Bernardino's municipal code. A maximum penalty of $1,000 per day can be levied in addition to other penalties as long as a violation is observed.

Grider's boss, City Attorney James F. Penman, is a proponent of ACPs. FIrefighters are required to perform inspections and Grider said Monday that Penman's office supports the use of ACPs to bolster the Fire budget.

"That could be a good way of raising revenue that hasn't been used at that point," she said.

However, the idea didn't seem to get any traction. Interim City Manager Mark Weinberg and 6th Ward Councilman Rikke Van Johnson both said they didn't want to employ firefighters as revenue collection agents.

"That's not any more palatable to me than if we had our police officers write more traffic citations on the street so we would be able to fund more officers," Weinberg said.

Weinberg also said the city's hearing officer frequently reduced ACP fines from the $1,000 max to amounts like $100.

By Andrew Edwards
SAN BERNARDINO -- Economic development officials are poised to help Maya Cinemas get a loan from Uncle Sam to finance the company's downtown theater project.

Maya Cinemas, based in Los Angeles, is the San Bernardino Economic Development Agency's hope to develop a sequel to CinemaStar, whose downtown theater business did a fade to black in September.

The 20-screen theater, at the corner of Fourth and E streets, has been a husk since CinemaStar failed.

The City Council voted Monday night to ask the U.S. Department of Housing and Urban Development for a $9 million loan to help Maya Cinemas accomplish its plans.

Maya is expected to purchase the theater site from the EDA and refurbish the property. Maya has promised to add an IMAX screen to the theater, and the firm is also planning commercial development near the cinema.

Maya Cinemas chief executive Moctesuma Esparza said Wednesday that the theater could open 60 to 90 days after financing becomes available.

The financing decision required council members to judge whether it's riskier for San Bernardino to allow a big cinema building to remain vacant or to guarantee millions in new debt. The council voted 6-1 in favor of vouching for Maya Cinemas.

"I'm hoping that we are successful ... all we can do is try," Estrada said Wednesday.

"There's a little bit of concern but the downtown does need those theaters," added Estrada, whose ward includes downtown.

Seventh Ward Councilwoman Wendy McCammack cast the sole vote against the financing plan.
She said Wednesday that she doesn't favor the city's guarantee of "a $9 million loan to a company that said they didn't need a dime of city subsidies."

"I understand that (economic) circumstances have changed, but that's still a difficult sale for this councilwoman," she continued.

But Esparza said changing economic circumstances are the very reason Maya is asking the government for help.

"That was before the credit crash," he said.

One reason for concern is that the loan would be made against San Bernardino's future allotments of federal Community Development Block Grants.

The U.S. Department of Housing and Urban Development manages both the Block Grants the Section 108 Loan Guarantee Program, which is the mechanism that could be used to help finance Maya Cinema's downtown project.

Block Grant funds can be used to finance a variety of local projects and are often disbursed to nonprofits that serve the needy.

The council-approved plan requires Maya to repay the loan in seven years. If Maya defaults, the EDA would repossess the theater site and assume the obligation to pay the balance of the Section 108 loan.

The city would not lose its ability to receive Block Grants as long as Maya Cinemas or the EDA can make loan payments, according to the Agency.

Interim EDA director Emil Marzullo said during Monday's meeting that he anticipates Maya will have a cinema operating downtown by the end of 2009.

Interim Code Enforcement director Wayne Harp says the city needs to change its requirement to use certified mail when sending inspection notices for San Bernardino's single-family rental inspection program.

"You're looking at $55,000 to $75,000 bucks just for the rental inspection program," Harp said.

Harp said the department is obligated to send notices by certified mail under city law. He said the City Council is expected to consider a change to that policy at a future meeting.

Harp said First-Class Mail would be sufficient.

A First Class stamp costs 42 cents. The inspection notice - sent via Certified Mail - that Montrose Avenue resident Anthony Eygnor received cost $5.32.

Harp said the city sends 11,000 to 15,000 inspection notices in a year. The $4-plus cost difference really adds up.

Also, Eygnor said he's not renting his home to anybody, so there wouldn't be a need for Code Enforcement to spend a fiver and change on sending him a letter.

He said several of his neighbors also received the notices.

"The poor post lady had a stack like this," Eygnor said.

By Andrew Edwards
Staff Writer

SAN BERNARDINO -- The City Council voted Thursday evening to appoint Reno City Manager Charles McNeely to the city's top administrative post.

"It is an opportunity for me to come to a community that has unprecedented opportunities, challenges, but unprecedented opportunities," McNeely said while addressing the council after their vote.

The council voted 5-0 in closed session to hire McNeely. However, Councilwoman Wendy McCammack abstained from approving his contract in public session, saying she was concerned about the amount of McNeely's compensation in light of recent efforts to obtain pay concessions from city employees.

The incoming city manager's contract sets his salary at $275,000 per year, minus a 10 percent giveback.

McNeely takes the job as San Bernardino's city government cuts back on staffing and services in the face of shrinking tax revenues. San Bernardino officials have also sought across-the-board pay concessions of 10 percent for police, fire and general employees and managers.

McCammack said McNeely's deal also includes $73,000 in other perks, such as $15,000 in relocation assistance. She also said that her abstention was meant as a show of support to city employees, not a criticism of McNeely's abilities.

Mayor Pat Morris responded to McCammack's concerns by pointing out that McNeely's salary and deferred compensation will be lower than several other nearby cities with smaller populations, such as Victorville, Fontana and Ontario.

But those on the dais spent more time Thursday welcoming McNeely to San Bernardino than debating dollars.

McNeely is scheduled to begin working in San Bernardino on June 1. He said he wants to work out a way to start earlier, but his contract with Reno requires him to give 60 days' notice before leaving.

He said one of his first tasks will be to meet with city Finance Director Barbara Pachon and build an understanding of San Bernardino's finances. He plans to prepare for a fairly long recession.

"I don't think this is going to turn around tomorrow. I think we're going to be in it for a year or two," McNeely said after the meeting.

He also outlined economic revitalization, public safety and recreational services as key priorities.
"I'm really a person who's very committed to making sure we have very strong recreational, library and art programs," he said.

This is from reporter Stacia Glenn. I was working in Big Bear Lake today.

Amends have been made between police officers and city leaders, and both sides are hoping to move past recent conflict and focus on bridging the city's $9 million deficit.

In a Wednesday night vote, 195 members of the Police Officers' Association approved a concessions packet that avoids layoffs and furloughs yet provides the city its requested $3.3 million from the union.

"We continued to work through this until we could find a happy medium. I'm very proud of our members and their generosity to help the city," said union Vice President Travis Walker. "I'm glad we can get on dealing with the bigger issues, like what led to this fiscal crisis."

Mayor Pat Morris said he is "delighted" with the agreement and grateful that both sides remained focused on budget issues.

Under the agreement, officers lose their uniform allowance and will begin paying $400 of their own monthly medical benefits.

In return, police will accrue an additional week of vacation time and bank an extra four hours in time off per week. Their contract, which was set to expire in December, has also been extended for another year.

"I'm very grateful for the memberships' approval of the contract extension, which includes the concessions," said interim City Manager Mark Weinberg. "I think it validates their claim that they were sincere about wanting to contribute to resolving the city's financial crisis."

Union leaders have said all along that officers are willing to make sacrifices to improve the financial status of San Bernardino, but lambasted city officials for not being upfront about the exact savings they sought.

"They kept changing it up on us. If they had actually come to us and bargained with us instead of trying to force what they wanted down our throats..." said union President Rich Lawhead. "This goes to prove that the cops all along wanted to give."

Police union leaders have waged an aggressive campaign against city officials' proposals since early February, when officials threatened to lay off 49 cops if the union did not agree to a 10 percent paycut.

After that proposal was tabled, the City Council discussed furloughing officers for four hours each week.

"We put all the ideas on the table initially. Those were negotiations that were done in confidentiality between the city and the laboring group," Morris said.

However, the mayor said the concessions package approved by the police union "is what we'd hoped for all the way along."

The City Council is scheduled to approve the contract at a special meeting Monday.

Police union president Rich Lawhead just called to report that the Police Officers Association has voted to accept the city's concessions package.

He said 246 officers voted, and the deal passed with a 79 percent vote. The agreement calls for officers to sacrifice medical benefits worth $400 per month. Cops also lose their uniform allowance and ability to sell back vacation and holiday time.

In return, officers get a one year extension of their contract, the ability to accrue about an extra week of vacation time and the ability to bank an additional four hours per week in time off.

San Bernardino cops' contract was set to expire in December of this year.

Lawhead said the deal averts the furloughs that the City Council imposed Feb. 19, although the council will have to take another vote to make it official.

The furloughs would have required officers to take off four hours per week without pay. Lawhead said the concessions deal makes it possible for officers to bank the same amount of time as paid time off but they can't take the time off until after the 2009-10 fiscal year. The time off has no cash value, so any officers who retire before that time will not be able to collect money for unused time.

Lawhead said union members have been willing to make concessions, but it's his opinion that city officials - who in early February threatened layoffs - did not begin the recent negotiations process by dealing fairly.

"I don't think we ever thought we were immune," he said.

Police union president Rich Lawhead said members are scheduled to vote today and Wednesday on a concessions package.

SB Now has yet to obtain the package's formal language, but Lawhead said the deal calls for officers to give up compensation in the form of medical benefits, uniform allowances and the ability to sell back vacation and holiday time.

Lawhead said today that surrendering the uniform allowance amounts to a $1,900 loss per officer over two years. He said Monday that the concessions would mean officers would lose a little less than $500 in compensation per month.

The union's acceptance of the concessions package could negate furloughs, which the city council imposed Feb. 19 to cut costs by reducing cops' paid time by four hours per week. A judge on Monday denied the union's attempt to obtain a temporary restraining order against furloughs.

In related news, the city and firefighters union have been unable to finalize an agreement on a concessions package. Sun reporter Stacia Glenn reported in today's edition that a City Council vote to ratify the deal has been postponed.

The city-firefighters agreement would have allowed firefighters to bank four hours of unpaid leave time per week in exchange for a 10 percent salary cut. The breakdown happened after interim City Manager Mark Weinberg added a provision to prevent firefighters from using the leave time before June 2010.

Firefighters' contract requires that all stations be constantly manned, and that firefighters who fill in for others' shifts be paid overtime. Weinberg said that allowing firefighters to use their new leave time before June 2010 risked an uptick in overtime costs.

"That will leave the city vulnerable for there to be a run on those bank hours, which has the potential to completely erase any of the negotiated savings," Weinberg said. "We're still giving them the same number of hours, the only thing that we wanted them to restrict was the amount of time they took off."

Judge W. Robert Fawke this morning denied the Police Officers Association's attempt to block City Council-approved furloughs.

"I don't see that I actually have the power to step in and take over the legislative process under these particular circumstances," Fawke said in San Bernardino Superior Court.

The police union asserted that the furloughs, intended to save San Bernardino money by cutting police pay by 10 percent, violated the City Charter provision that sets a formula to establish salaries. The city countered San Bernardino faces a fiscal emergency and that the furloughs change officers' work schedules, but not their hourly rates.

This morning's decision does not end the case. Although Fawke rejected the union's plea for a temporary restraining order against furloughs, attorneys for both sides said the police officers' lawsuit against the city's action continues.

Monday's City Council agenda calls for the council to vote on whether to re-hire Police Chief Michael Billdt and Assistant Chief Mitch Kimball as contractors.

Such an action would allow the police officials to collect retirement incomes and a wage at the same time.

Billdt would earn $97.93 per hour as a contractor. Kimball would earn $86.87 per hour under the arrangement. The wages are reflective of a 10 percent pay cut, according to the request for council action.

Their appointments as contractors would take effect Monday.

Capt. Ernie Lemos would receive an appointment as acting police chief from 12:01 Sunday to 12:59 p.m. Monday.

Extensive details on Billdt's or Kimball's retirements were not available late Thursday. Police Capt. Scott Paterson said the two were not available to speak until Friday.

Mayoral chief of staff Jim Morris said Billdt and Kimball were not obtaining a medical retirement. He said the arrangement allows Billdt to collect benefits that he has earned from the state's Public Employee Retirement System while the city does not have to hire an interim chief for 6-8 weeks until a permanent successor is hired.

"They have the right to retire and begin that process," Morris said.

He said retirement payouts won't affect the city's finances and a police chief's salary is an unavoidable expense.

"We need a police chief. We would pay that to him or someone else," Morris said.

Billdt announced in September 2008 that he would retire in March. He revealed earlier this month that he planned to stay in office for some additional weeks. The police union took its second no confidence vote against Billdt after the latter announcement.

Interim City Manager Mark Weinberg said on the telephone that the fire union was not accurate in its assertion today that he tried to change the city's concessions deal with association.

"It's a real mischaracterization to say that we're trying to change the terms," he said.

Weinberg said he had negotiated "deal points" with the union, and the current dispute relates to how those deal points were being translated into contract language. He declined to be quoted on specifics.

By Andrew Edwards
Staff Writer

SAN BERNARDINO -- Another year of budget troubles is likely to revive talk of selling off the city's waste hauling division.

Interim City Manager Mark Weinberg wants to bring the idea before the City Council some time in the next two months.

"The Integrated Waste enterprise represents a substantial City asset that could be sold outright, or franchised, in a manner which would provide the City with a significant cash infusion, as well as a recurring income stream," Weinberg wrote in an email.

The Integrated Waste Management Division is part of the city's Public Services Department. The division is responsible for hauling garbage, recyclables and green waste from homes and businesses.

Weinberg wrote that he plans to ask the council to approve the hiring of a consultant to study whether some kind of privatization plan would work out.

The idea raises a number of questions, such as whether a contractor could provide equivalent or better service that the city-run operation. There are also the matters of whether residents' rates would go up and what would happen to current employees' job security.

"I'm concerned about maintaining the integrity of employees," 3rd Ward Councilman Tobin Brinker cq said. "It's not a way of breaking up the union."

That said, Brinker said he's open to the notion of privatizing waste services if a prospective contractor can turn in a quality proposal.

He said he's aware of preliminary projections indicating that privatization could be a $30 to $50 million boon for the city, but has not seen any kind of detail that would put more substance to those predictions.

Fifth Ward Councilman Chas Kelley also said he's open to the idea, and mayoral chief of staff Jim Morris said Mayor Pat Morris thinks the idea is worth studying.

Seventh Ward Councilwoman Wendy McCammack was more skeptical.

"As far as refuse is concerned, the commercial side of refuse is money maker for the city. Why would you sell a money maker?," she asked.

McCammack said she is more interested in exploring the possibility of selling surplus property. She is also gathering cost-savings ideas from San Bernardino employees.

San Bernardino's mid-year budget report shows that the city's Integrated Waste Management fund is expected to bring in nearly $24.7 million by the end of June.

Expenditures and transfers -- nearly $2.6 million is set to go to the general fund -- are expected to leave the fund about $570,000 in the hole when the fiscal year ends June 30.

Neighboring Colton franchises waste hauling services to firm called Colton Disposal. The company's rate for Colton residences is $22.59 per month.

San Bernardino's charge for single family residences is $22.84 per month.
Colton City Manager Daryl Parrish wrote in an email that he's pleased with his city's franchising arrangement.

Colton takes in about $900,000 annually in franchise fees, plus a $90,000 administrative fee. The city also receives about $125,000 in recycling income.

San Bernardino's fire union issued a statement a few minutes ago claiming that interim City Manager Mark Weinberg wants to renegotiate salary concessions.

Here's the union's full statement:

"San Bernardino Firefighters have been informed by interim City Manager Mark Weinberg that he wishes to change the terms of a 10 percent salary cut agreement accepted by city firefighters.

"On Feb. 19, the San Bernardino Firefighters approved a wage and benefit concession that was requested by the city, so we would be in-line with the city's mandate of a 10 percent across-the-board salary cut for all city employees.

"It would seem that Mr. Weinberg wishes to renegotiate and change the terms of our agreement - even though the written terms of which were proposed by Mr. Weinberg himself. In short, he now believes that our concession is not great enough and even though he acknowledges that this was his proposal, he still wants to change several terms of the agreement. We have not received his suggested changes in writing as of this time.

"We entered into budget cut discussions with the City with a great deal of openness, cooperation and trust. We understand and share in the pain of the city's budget crisis and the toll it has already taken on city residents and our fellow employees. It was in this spirit of shared sacrifice that we chose to seek a conciliatory tone in our approach to the budget crisis rather than confrontational.

"We are now concerned that our wage cut agreement was used to earn our trust and show support for the city's effort to push for tough budget cuts. And now that our ranks have voted to accept the agreement, he is attempting to change the terms of our agreement at our expense. We are greatly concerned with both the ethical and legal ramifications of this action.
We remain hopeful, however, that the City Council will see that "bait and switch" tactics in matters of wage cut agreements are a very serious matter. We are hopeful the City Manager will abide by the agreement as it stands."

Weinberg could not be reached immediately for comment.

Police Officers Association president and City Attorney James F. Penman both confirm that the police union has filed their promised lawsuit to stop furloughs.

I haven't seen a copy of the lawsuit yet, but parties on both sides of the issue have said previously that the legal question is whether the City Council has power to order furloughs as a means to shrink officers' paychecks in a time of economic hardship.

The City Charter mandates that police and firefighter salaries be established by a formula that sets pay levels as the average of 10 similarly-sized California municipalities. A furlough doesn't exactly change anybody's hourly rate, but forcing officers to take four hours off each week would ensure that officers get less money when they cash their paychecks.

Not sure yet when the lawsuit will be heard.

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- Police are scheduled to vote Wednesday night on a concessions proposal that could provide an alternative to furloughs.

"They gave me some stuff to take back to the membership," said Rich Lawhead, president of the Police Officers Association. "We have a membership meeting tomorrow night. We'll see what happens."

Lawhead participated in a meeting that included interim City Manager Mark Weinberg Tuesday morning. Lawhead declined to reveal details of the new proposal.

City Hall officials and the police union have spent much of recent weeks arguing over concessions and budget cutting proposals as city leaders struggle to balance San Bernardino's recesssion-stricken budget.

Tuesday's negotiations followed the City Council's decision to impose furloughs on police officers as part of a plan intended to solve a $9 million deficit.

The council voted for furloughs Thursday after negotiations broke down after the police union demanded Police Chief Michael Billdt's departure in exchange for $3.3 million worth of concessions.

Weinberg wrote in an email that the police union has dropped its demand for Billdt to leave his job. He also wrote that the police union's interest in discussing matters beyond dollars and cents has created a challenge.

"The POA has indicated a desire to consider other working condition provisions, and that has posed some obstacles. Still, I believe that progress was made and am hopeful that the membership will vote to approve the current proposal later this week," Weinberg wrote.

Billdt declined to comment on the negotiations. He said he wants to respect the confidentiality of talks between the police union and city manager's office.

Until recently, Billdt was expected to retire in March. He is now set to remain with the city until a permanent successor can be hired.

Of San Bernardino's three largest employee groups, only the police union has yet to agree to any concessions. General employees and firefighters have agreed to givebacks that amount to 10 percent of their salaries.

Word is that the Police Officers Association is negotiating with city officials this morning. Developing ...

Many recent commenters want info on Measure Z. Here are some numbers that Finance Director Barbara Pachon distributed to the Measure Z Oversight Committee during Wednesday night's meeting.

Measure Z is a 1/4-cent sales tax hike that San Bernardino voters approved in Nov. 2006.

Estimated Measure Z revenues in the Fiscal 2008-09 budget were $7,050,000.

The mid-year estimate, which takes into account the economic downturn, is $6,545,000. The variance is $505,000.

City officials plan to spend $8,126,500 on Measure Z programs during the fiscal year. Police get the lion's share - $7,884,300 - and Parks, Recreation and Community Services gets $242,200. (Measure Z has also been used to finance Operation Phoenix youth centers.)

The city is able to spend more than current fiscal year Measure Z revenues by drawing from a fund balance that was $1,787,343 on July 1, 2008. The balance is projected to dwindle to $205,843 by June 30,2009.

Assistant Police Chief Mitch Kimball said in a phone interview today that Measure Z has allowed SBPD to hire 34 sworn and 10 nonsworn positions. City officials had hoped to hire an additional six cops by June 30, but the recession has arrested those plans.

Kimball said that without Measure Z, the department would not have the 44 SBPD employees who were hired with Measure Z dollars.

Aside from Measure Z-funded police positions, interim City Manager Mark Weinberg's budget plan calls for the department to hold 10 positions (three detectives, two sergeants and five police officers) vacant through Fiscal 2009-10.

The budget revisions that the City Council approved Tuesday call for about $5 million in reserves to be used to pay for city business during the remaining months of the fiscal year.

Officials expect the city to have about $3 million in reserves when the fiscal year concludes on June 30.

"A month of payroll is about $12 million. We are literally on the precipice," assistant city manager Lori Sassoon said during Wednesday night's meeting of the Measure Z Oversight Committee.

The city's round of budget cuts doesn't only eliminate rank-and-file jobs. A quartet of senior management positions are also slated to be eliminated.

Those positions are:

- Animal Control Director (Estimated savings of $125,089 in Fiscal 2009-10.)

- Code Enforcement Director (Estimated savings of $219,530 in Fiscal 2009-10.)

- Facilities Management Director (Estimated savings of $178,576 in Fiscal 2009-10.)

- Information Technology Director (Estimated Savings of $171,600 in Fiscal 2009-10.)

City Hall officials are considering a departmental merger that would place Animal Control and Code Enforcement under Parks, Recreation and Community Services.

"A portion of my proposed savings over the next 16 months comes from the consolidation of some operating departments. In particular, it is recommended that the Parks Director assume responsibility for Animal Control and Code Enforcement Services. The library would retain its
autonomy," interim City Manager Mark Weinberg wrote in an email.

"It should be pointed out that I have purposely recommended that any organizational restructuring be deferred to the start of the next fiscal year. This will give the new permanent City Manager an opportunity to review my recommendations and make modifications to suit his or her vision of the organization," he continued.

And they're not happy.

Here are some quotes from the public comment portion of Tuesday night's City Council meeting. The public spoke before the council authorized 55 layoffs and other budget cuts.

No layoffs were approved for Police and Fire, but Animal Control, Code Enforcement, Development Services, Facilities Management, Information Technology, Library, Parks Recreation and Community Services and Public Services are all slated to lose personnel.

The quotes are presented in the order the speakers approached the council. Not all speakers are included.

The City Council voted 4-1 tonight to approve a package of budget cuts that includes the firings of 55 employees.

Parks maintenance workers will be hit particularly hard. No layoffs were approved for police or firefighters.

The city faces a $9 million operating deficit for the remaining months of the fiscal year.

Councilmen Dennis Baxter, Tobin Brinker, Chas Kelley and Rikke Van Johnson voted for the cuts. Councilwoman Wendy McCammack cast the only "no" vote. Councilwoman Esther Estrada was not present at the meeting, and Mayor Pat Morris said she was ill.

The council cast their votes after listening to about two hours worth of statements from police, parks employees, public services workers and others who were worried about the effects of cutbacks.

The council is scheduled to meet again Thursday for a special meeting to discuss police furloughs.

More to follow in the morning.

Here's an announcement from San Bernardino Professional Firefighters:

San Bernardino Firefighters Approve 10 Percent Salary Reduction
SBCPF Local 891 Membership Supports City Budget Reduction Proposal

SAN BERNARDINO (February 17, 2009) - The San Bernardino City Professional Firefighters voted today to support an employee wage and benefit concession equivalent to a reduction of 10 percent of base salary in an effort to address the City's deepening fiscal crisis.

The across-the-board salary reduction was requested by city management to address its anticipated $9 million deficit for this year, as well as the projected $19.8 million deficit in FY 2009-2010. All 155 members of the SBCPF Local 891 will participate in the concession, which produces the same percentage savings as the 36-hour work week reduction by non-safety city employees.

"We recognize and commend the city firefighters for their personal sacrifices and willingness to work together for the greater good of their fellow employees, and also of the community we serve," said interim City Manager Mark Weinberg.

In supporting the wage reduction, San Bernardino firefighters are working with city management to minimize the need for staffing cuts.

"Our first priority is to ensure that the city's station and engine staffing will continue to guarantee public safety," said Scott Moss, president of the SBCPF Local 891. "In addition, we will insist that budget decisions always take into consideration the safety and welfare of our professional force."

In addition to their service to the city as public employees, the San Bernardino Professional Firefighters also fund a robust philanthropy program. Every year, city firefighters volunteer time and money toward city non-profit programs and organizations. In 2008, San Bernardino firefighters donated over $35,000 to help fund city programs that directly help residents, and they have also volunteered over 3,100 hours of time in community support.

Breaking news. A revised budget proposal from interim City Manager Mark Weinberg recommends that the council impose a mandatory furlough on sworn police officers in order to obtain the 10 percent pay cut that officers have rejected.

The proposal would allow 16 positions to remain or become vacant by the end of the fiscal year, which means that the fulfillment of the SBPD expansion that was promised during the Measure Z campaign will be, at best, postponed.

I'm still digesting the proposal, which contains changes to proposed cuts for other departments.

Newsroom colleague Stacia Glenn informs me that City James F. Penman believes the furlough plan is illegal.

Developing ...

San Bernardino scuttlebutt that found its way to the newsroom Wednesday night had it that a police officer or police officers had threatened to arrest the City Council members who serve on the Budget Ad Hoc committee for an alleged violation of the Brown Act.

Previous postings on SB Now look at the controversy as to whether Wednesday's meeting would have been proper under California's open meetings law. 7th Ward City Councilwoman Wendy McCammack, who is not a member of the committee said she was present at the meeting site and that talk of arrests was meant sarcastically.

"It was a tongue in cheek kind of a joke," McCammack said. She said she did not know who cracked the reported wisecrack.

The meeting was never called to order. Interim City Manager Mark Weinberg wrote in an email that he canceled the meeting to afford more time to consider a cost savings proposal from Police Chief Michael Billdt that is being touted as a way to potential reduce layoffs of sworn police officers.

"I was not threatened in any way with respect to the meeting,." Weinberg wrote. "We convened the meeting, only for me to report to the Budget Ad Hoc Committee members that just 90 minutes earlier I received a report from the Police Chief which could have significant impact on my budget recommendations, and that I needed more time to digest it. I understand
there were predictions of some drama surrounding the meeting; however the brief meeting went without incident.

"Because of the compression of time between now and the MCC budget study session on February 17th, it is unlikely I will be able to reschedule an Ad Hoc Committee meeting. I
will likely seek input from one or more Council Members, without convening a meeting, and in full compliance with the Brown Act," he continued.

The council's next meeting is set for Feb. 17.

It's copied here:

SAN BERNARDINO, CALIF. - The San Bernardino Police Officers Association's president, Richard Lawhead, made the following statement, on behalf of the Association's members, in response to Mayor Pat Morris' press release from earlier today:

"It is unfortunate that Mayor Pat Morris and Chief Michael Billdt continue to misrepresent the position of the Association when it comes to the city's current fiscal problems and the drastic steps the city has proposed to balance the budget by sacrificing public safety. What the Mayor and his team call 'minimal impacts' to the department are in reality eliminating 49 officers, forcing an additional 22 officer to take a demotion or face termination, and a mandatory 10 percent cut in our salaries. These proposed budget 'solutions' will risk the gains we have made in reducing crime in our city.

While Mayor Morris and Chief Billdt try to portray this issue as one of the city versus the Association's leadership, what they fail to understand is that more than 200 members of the Association uniformly expressed that they are tired of the broken promises by our city's elected officials.

The Association's members do not consider reducing our ranks and destroying the morale of our department a 'minimal impact.' These cuts will not only have a major impact on the people that protect our city, but on our residents as well. These are our concerns, and our focus has been on protecting these jobs and continuing to provide top-notch service to our community.

Put simply, the Mayor and Chief are trying to fix our city's budget, which they helped create with their mismanagement, by balancing the budget on the backs of our city's cops. We have provided them with concrete steps to reduce costs and raise revenues, without terminating officers or impacting our public safety capabilities, but they refuse to listen to our suggestions or work with us to find solutions that would benefit our community and the people that we work everyday to protect.

We have always been willing to sit down and have honest, open discussions about how we can help with the city's financial situation. Unfortunately, we never get straight answers and have little faith that what we are being told is accurate. The city's current proposed 'solution' is bad for the police department, bad for the city, and ultimately bad for the residents and business owners of San Bernardino."

Revised version of story posted at 5 p.m. to include late-breaking developments.

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- A Wednesday night budget meeting that would have included City Council members was called off as tensions rise in the face of deep spending cuts.

Third Ward Councilman Tobin Brinker, who serves on the committee that would have met Wednesday night, said late Wednesday that interim City Manager Mark Weinberg needed more time to communicate with city employee unions.

"He didn't feel it would be a very fruitful meeting if we didn't have that information to put into the report," Brinker said.

But prior to the meeting, there was disagreement among San Bernardino's politicos as to whether the meeting would have been legal.

Three members of the City Council serve on the Budget Ad Hoc Committee, which was scheduled to meet privately Wednesday to discuss current financial issues. San Bernardino has three council members on a standing Ways and Means Committee that also talks about money.

On Tuesday, 1st Ward Councilwoman Esther Estrada wrote a letter to City Attorney James F. Penman asking if the city risked violating the Brown Act, California's open meetings law, by having the same membership on each committee.

But Estrada's letter was based on incorrect information. Council members Brinker, Tobin Brinker and Chas Kelley serve on Ways and Means. Brinker, Kelley and Councilman Rikke Van Johnson and Mayor Pat Morris serve on the budget committee.

Interim City Manager Mark Weinberg said early Wednesday that the difference in membership makes the issue moot.

But Terry Francke, general counsel for Californians Aware, said it could appear as if having two committees where financial issues are discussed is a way for the city to get around open meetings requirements.

Estrada could not be reached for comment Wednesday. Penman had a sentiment similar to Francke's.

"The only reason I can think of is to avoid complying with the Brown Act," he said.
Weinberg and mayoral chief of staff Jim Morris pointed out before Wednesday's meeting reasons why they believe the budget committee is exempt from the Brown Act. The committee is formed by Weinberg, not the council, only plays an advisory role and does not include a quorum of the council.

Tempers have been a little hot as officials face proposals that include firing cops, firefighters and parks maintenance staffers.

Kelley said he has been in office since 2004 and the newly-raised objections to the budget committee -- set to meet Wednesday night -- have not been voiced during his tenure.
"Past practice is what I would refer to," Kelley said.

Kelley is chairman of Ways and Means. He said that committee has recently discussed individual money issues but not the overall budget.

Word is coming in to Sun HQ that tonight's meeting of San Bernardino's budget advisory committee was called off

By Andrew Edwards
Staff Writer
SAN BERNARDINO -- Much of the work that goes into crafting the city's budget happens behind closed doors.

It probably goes without saying that the city staffers who are responsible for crunching financial numbers don't do their jobs before an audience, but three members of the City Council also serve on an advisory committee that meets privately to discuss budget issues.

The council has acted this way before, but the closed-door meetings are now the subject of a new flare up among the city's politicos as officials grapple with an array of unpopular options intended to solve a $9 million deficit.

San Bernardino has a standing Ways and Means Committee and a Budget Ad Hoc committee. The phrase "ad hoc" refers to issues that are handled on a one-time basis, although the budget is something that city officials have to tackle every year.

Tuesday, 1st Ward Councilwoman Esther Estrada wrote a letter to City Attorney James F. Penman asking if the city risked violating the Brown Act, California's open meetings law, by having the same membership on each committee.

But Estrada's letter was based on incorrect information. Councilmembers Dennis Baxter, Tobin Brinker and Chas Kelley serve on Ways and Means. Brinker, Kelley and Councilman Rikke Van Johnson and Mayor Pat Morris serve on the budget committee.

Interim City Manager Mark Weinberg said early Wednesday that the difference in membership makes the issue moot.

He and mayoral chief of staff Jim Morris pointed out reasons why they believe the budget committee is exempt from the Brown Act. The committee is formed by Weinberg, not the council, only plays an advisory role and does not include a quorum of the council.

But Terry Francke, general counsel for Californians Aware, said it could appear as if having two committees where financial issues are discussed is a way for the city to get around open meetings requirements.

Estrada could not be reached for comment Wednesday. Penman had a quote similar to Francke's.

"The only reason I can think of is to avoid complying with the Brown Act," he said.

But tempers have been a little hot as officials face proposals that include firing cops, firefighters and parks maintenance staffers.

Kelley said he has been in office since 2004 and the newly-raised objections to the budget committee -- set to meet Wednesday night -- have not been voiced during his tenure.
"Past practice is what I would refer to," Kelley said.

Kelley is chairmen of Ways and Means. He said that committee has recently discussed individual money issues but not the overall budget.

Here's a link to Mayor Pat Morris' statement.

Also, Sun cops reporter Stacia Glenn tells me that Police Chief Michael Billdt told her that he has an as-yet unrevealed plan to avoid police officer layoffs.

Morris Feb. 11 release.pdf

First posted by newsroom colleague Jason Pesick to The Sun's 24/7 breaking news blog.

Members of the San Bernardino Police Officers' Association unanimously voted Tuesday night not to accept a 10-percent pay cut for officers, in addition to passing a vote of no confidence against the Police Department's top leadership.

Association Vice President Travis Walker, also a detective in the department, said members did not want to make the concessions because the city would not guarantee that there would be no officer layoffs.

Of the 339 officers in the department, the 190 who showed up for the vote overwhelmingly voted no confidence in Chief Michael Billdt, Assistant Chief Mitch Kimball, Capt. Theodis Hensen and Lt. Brian Boom.

It was the second vote of no confidence the association has taken against the chief.
Officers are also upset that Billdt will not be leaving his post in March, as originally planned.

Here's the story as filed:

The Sun has obtained a copy of a Feb. 10 letter that was sent to several SBPD detectives and sergeants that gives personnel the option of accepting either a demotion or unemployment.

The letter begins as follows:

"The General Fund deficit projected for the balance of this year and Fiscal Year 2009-2010 is being addressed through a comprehensive strategic budget plan. The plan recommends many actions, including expenditure cuts, revenue enhancements, the sale of City-owned property, employee wage concessions and, regrettably, a reduction in the workforce. Unfortunately, your position is one of those identified for layoff in the Police Department."

The copy of the letter we received is addressed to a detective whose name has been blacked out. The letter informs the detective that he or she has the option of accepting demotion to a police officer job with the right to be promoted back to detective within two years if a vacancy at that level develops.

The recipient's other choice is to leave SBPD and be placed on a reemployment list with eligibility to be rehired as a detective within two years.

Layoffs would be effective as of March 13.

Newsroom colleague Stacia Glenn has learned that 7 sergeants and 15 detectives received the bumping notices. SBPD currently employs 47 detectives and 46 sergeants.

San Bernardino would cut $35,000 in funding to Young Visionaries Youth Leadership Academy if the City Council approves the current budget cut proposal.

Young Visionaries is a gang prevention program based in San Bernardino. It's led by former gang member Terrance Stone. City Councilwoman Wendy McCammack and City Attorney James F. Penman sit on the organization's board of directors. Young Visionaries has also participated in youth-oriented events with the Police Officers Association.

Stone said the funding cutback will require Young Visionaries to rely on other funding sources, such as the U.S. Department of Justice, and will delay implementation of "The Firm." The Firm is a planned program that would employ a group of mediators in an effort to defuse street disputes before gunshots ring out.

Here's a nugget found in a city document related to proposed budget cuts:

"Parks, Recreation and Community Services could be consolidated with the Library, Code Enforcement or other departments. The Parks Division could be maintained, separated or contracted out for increased beautification efforts. The merging of Library and Recreation (Community Services Department) would allow the shifting of satellite branches to the community centers. Determination for executive oversight or exploration of Recreation Services staffing would need to be determined. The elimination of support personnel in any departmental consolidation would also be General Fund savings."

The author of the proposal is not listed in the document. Any thoughts? Recreation and library services may mesh well but I wonder what people think about mixing code enforcement work to a department that's mission is essentially to provide residents with places to relax and have fun.

City officials are currently considering proposals to save money by laying off parks employees responsible for taking care of the city's parks and contracting for the service.

I was able to speak with 6th Ward Councilman Rikke Van Johnson after I had to turn in my contribution to the library story that will run in Thursday's edition.

Here's what Johnson had to say about the proposed budget cuts:

"There's a little bit of wiggle room right now, but very little," Johnson said. "I'll be talking to the City Manager about making sure I can do what I can to make sure Inghram doesn't close."

Inghram is one of three branch libraries that are slated for temporary closure under interim City Manager Mark Weinberg's proposal to solve a projected $9 million budget gap. Libraries that have closed previously in San Bernardino have not reopened.

The Press-Enterprise reports that Corona can no longer afford to maintain aerial patrols:

"Facing a tight budget with no money for air support, the Corona Police Department will sell its helicopter, Crown 1.

"The move will leave the department without a key crime-fighting tool and end the city's 7-year-old airborne program, Police Chief Richard Madory said."

The full article is written by Alicia Robinson, my former co-worker at the Daily Pilot in Costa Mesa.

San Bernardino interim City Manager Mark Weinberg has recommended that the city end its contract for a helicopter when the fiscal year ends on June 30. The move is expected to save $555,900.

Just talked with 2nd Ward Councilman Dennis Baxter. He said there could be some changes to interim City Manager Mark Weinberg's proposed budget cuts, but doesn't think it's the council's job to micro-manage the budget.

"I'm sure everyone will scrutinize to see see if there is anything we can salvage. I have a sneaking suspicion that Mr. Weinberg is on target ... it's a tough bullet to bite."

Baxter also said that when the council hired Weinberg, the body was looking for somebody willing to make the kinds of hard choices that are presently on the table.

-For Fiscal 2008-09, the revised estimate for total general fund revenues is $138,271,000. That figure is about $10 million less than what was anticipated in the approved budget.

The revised estimate for general fund expenditures is $151,109,000, which is about $1 million less that what was allocated for in the approved budget.

Subtracting estimated annual expenditures from estimated annual revenues leaves San Bernardino with $9,025,000 operating deficit.
All statistics are from the City Manager's Office and do not reflect proposed budget cuts:

- In Fiscal 2008-09, San Bernardino budgeted 45 percent of its general fund to the Police Department. Twenty years ago, 30 percent of the city's general fund went to law enforcement.

The Fire Department has 23 percent of the current general fund, compared to 19 percent two decades ago.

Parks gets 4 percent of the 2008-09 general fund, compared to 8 percent a two decades ago.

Streets gets 4 percent of the 2008-09 general fund, compared with 7 percent 20 years ago.

Facilities Management gets 2 percent of the 2008-09 general fund, compared with 10 percent 20 years ago.

Planning, building and engineering gets 4 percent of the 2008-09 general fund, compared with 9 percent 20years ago.

-Payroll for all departments has consumed the lion's share of the general fund during the past two decades. In the current fiscal year, 75 percent of the money is assigned to personnel. That figure was 71 percent in 1988-89

Here is some reportage on the proposed cutbacks for San Bernardino's library system. Interim City Manager Mark Weinberg has proposed temporarily closing the city's three branch libraries as part of a cutback plan intended to solve a $9 million budget shortfall.

The process is not finished, so the final slate of budget cuts may be different from what Weinberg proposed. I get the sense that these kinds of processes start with a discussion of highly-undesirable cuts before officials scramble for alternatives that lessen the blow.

When San Bernardino began its budget talks last year, then City Manager Fred Wilson's initial plan included a provision to cut funding for crossing guards. Didn't happen.

But the economy is a lot worse now than it was last summer, so there's little chance for San Bernardino to avoid insolvency without making a lot of people upset. Popular services will be cut, but it's still open for question as to exactly where and how deep those cuts will be.

The library info is after the jump:

Amid talk of layoffs, interim City Manager Mark Weinberg is also proposing several new fees to shore up San Bernardino's $9 million budget gap.

The fees could raise a projected $501,600 during Fiscal 2009-10.

One such proposal would mandate cat licenses, which are currently voluntary. Feline licenses currently cost $30 if the animal has not been spayed or neutered. There are discounts for licenses for "fixed" pets and further discounts for seniors whose cats have been spayed or neutered.

Cat licenses are projected to raise $45,000.

Other fee proposals include:

- Increasing Animal Control's 1-year licensing fee for neutered dogs from $15 to $20 to raise $36,000.

- Increasing Code Enforcement's weed abatement administrative fee from $110 per parcel to $320 per parcel to raise $189,000.

- Creating an $80 Code Enforcement fine for illegal advertisement signs to raise $45,000.

- Increasing the Police Department's tow release fee from $215 to $235 to raise $42,400.

- Increasing the Police Department's non-permitted false robbery alarm fees from $100 to $175 for the first four calls. Fees for false robbery alarms in permitted and non-permitted locations would rise from $125 to $250 for the fifth and sixth calls and from $250 to $300 for the seventh through ninth calls. The fee hikes are expected to raise $7,600.

Seventh Ward Councilwoman Wendy McCammack criticized interim City Manager Mark Weinberg during budget talks Monday night for what she sees as a failure to seek additional revenue enhancements.

McCammack maintained that the city should engage in more aggressive code enforcement and inspection efforts, thereby maximizing fee and fine revenues while cleaning up the city. She singled out a proposal to impose a new $80 fine for illegal signs when the city's administrative civil penalties law carries a provision for a maximum fine of $1,000 per day for any violation of the municipal code.

"Why would you undercut yourself if you've already got the legislative power to fine more?," asked McCammack, who has taken the position that the city should pursue new revenues before considering layoffs.

Weinberg and Mayor Pat Morris issued sharp rebukes to McCammack's suggestion. Weinberg asked McCammack if being pro-business, she would really want to start handing out $1,000 fines in the middle of a recession.

Morris, a former judge, maintained that such a hefty penalty for a sign violation is disproportionate to the offense.

"You're talking about people paying a $1,000 fines for minor infractions, and no judge worth his salt is going to enforce this," he said.

The proposed $80 fine for illegal signs could raise $45,000 in Fiscal 2009-10, according to Weinberg's office.

Documents pertaining to proposed budget cuts are here.

Here's the story I submitted for Wednesday's edition of The Sun on proposed budget cuts.

Bureaucrats often use surgical metaphors to describe budget cuts.

When finances are a little tight, administrators talk about "cutting the fat."

When things get really bad, there's talk about "cutting into the bone."

But San Bernardino needs take the metaphor to a new level to describe the city's financial surgery. The municipal patient is being prepped for an operation that will include the removal of organs and muscle, the amputation of a limb or two and an old-fashioned bleeding.

The City Council set the course Monday night for a round of budget cuts that could include major layoffs, including the letting go of many sworn police officers and firefighters.

Interim City Manager Mark F. Weinberg is also seeking the council's approval to lop off some city department heads. The cuts are part of an attempt to solve a $9 million budget gap by the end of the year.

The council voted 5-1 to allow Weinberg and department chiefs to prepare layoff notices. The council's action also cleared the way for city administrators to prepare work schedules commensurate with a four-day work week.

7th Ward Councilman Wendy McCammack, who said she objected to city officials move toward layoffs without seeking additional revenue sources, cast the sole "nay" vote.

Police and firefighters can't stop working on Fridays so Weinberg wants to negotiate with the unions so safety personnel take a 10 percent pay cut. He said that if cops and firefighters refuse the pay cut, there will be more layoffs within public safety.

Here is how the proposed payroll cuts break down:

- Animal Control could lose eight positions after July 1 if the city ends contract services to Fontana and Colton.

-The City Clerk's office faces the loss of one customer service representative.

- The Code Enforcement Director's position could be eliminated. Code Enforcement could also lose three officers

- Development Services could lose 17 people.

- The Facilities Management Director could be cut.

-The Fire Department could be cut by 10 firefighters and an administrative assistant.

-In Information Technology, the director's position and four others could be eliminated.

- The Library Department could be slashed by eight positions.

- The Mayor's Office would lose an Assistant to the Mayor

- The Parks, Recreation and Community Services Department would 36 employees.

- The Police Department could lose 29 cops can 7 support employees. Proposed reductions to the sworn officer force include the loss of four sergeants and five detectives.

- The Public Services Department would lose two traffic signal technicians.

According to Weinberg's analysis, that's not the worst case scenario. If the police and fire unions refuse pay cuts, he proposes the following additional cuts

- Twelve firefighters and a battalion chief from the Fire Department,

-One captain, three sergeants, two detectives, 14 officers and eight civilian employees from the Police Department,

- Two Parks employees

- Four Public Services employees

In terms of city services, proposed cuts would entail the closure of the eastside Operation Phoenix Center, the summertime closure of all city swimming pools except those at the Jerry Lewis Swim Center and the temporary closure of all three city branch libraries.

More to follow Tuesday.

Actually, it may be better to write that the council will "talk chicken." There might not be enough money around to afford a turkey.

A budget workshop is scheduled to take place during today's City Council meeting, which is scheduled to begin at 3 p.m.

Interim City Manager Mark Weinberg said in a Thursday interview that San Bernardino faces a $9-10 million shortfall for the remaining months of the fiscal year. He has previously pegged the budget gap at $12 million, and attributed the change to savings accrued from the hiring freeze he ordered in mid-December.

The City Council voted Tuesday to spend nearly $78,000 on four new Ford F-250 pickup trucks for San Bernardino's new anti-graffiti team.

The vendor in the deal is San Bernardino-based Fairview Ford.

The council voted 4-2 to approve the spending request. Councilmen Dennis Baxter, Tobin Brinker, Chas Kelley and Rikke Van Johnson cast "yes" votes. Councilwomen Esther Estrada and Wendy McCammack voted "no."

McCammack was unhappy about the prospect of the cash-strapped city spending money on new trucks. Public Services Director Ken Fischer responded that the city did not have suitable used vehicles in the city fleet.

Also on Tuesday, the council voted to appoint five employees to the new anti-graffiti team.

The city's steps to create a new anti-graffiti squad follow the council's controversial move to end its contract with Los Padrinos, a San Bernardino organization that employed troubled youth to abate graffiti.

None of the new employees came from Los Padrinos, Fischer said.

It's very likely that the Police Department will lose helicopter patrols at the end of June.

Tuesday, the City Council voted 5-1 to continue funding the city's helicopter contract with Riverside-based California Aviation Services until June 30, when the fiscal year comes to a close.
7th Ward Councilwoman Wendy McCammack, concerned about the cost of the chopper, cast the sole "no" vote.

The city is set to spend $278,000 on the helicopter over the remainder of the contract.

"It's unaffordable but we've come to the conclusion that we have no other alternative," interim City Manager Mark F. Weinberg said.

Weinberg has said the city faces a current fiscal year shortfall as high as $12 million.

In his request for council action, Weinberg recommended that the council allow the helicopter to expire at the end of the fiscal year and to reconsider to possibility of aerial patrols at a time when the city has more money.

SBPD's current helicopter contract began in 2006. Last year, the council voted to cancel the contract in an attempt to save money but quickly reversed that decision in order to avoid a possible lawsuit.

Here's a link to interim City Manager Mark Weinberg's memo on the new hiring freeze.

CMBudDirectives.doc

Perhaps the most interesting aspect of the freeze for many people will be the impacts on public safety. Weinberg wrote that considerations for exemption from the freeze will be given to positions that are needed for imminent safety concerns. Other jobs that may remain unfrozen are those that are not financed by general fund revenues or those that generate enough money to be worth keeping.

Assistant city manager Lori Sassoon wrote today in an email regarding public safety departments that "public safety is not categorically exempt from the freeze, however front line police and fire positions will be filled, and emergency services will not adversely affected."

The hiring freeze proposed by interim City Manager Mark Weinberg is official, but not through any action of the council.

Weinberg says the city faces a $12 million shortfall during its current fiscal year.

City Attorney James F. Penman asked the council to ratify the hiring freeze - announced in a memo to other city officials by Weinberg in mid-December - out of an "abundance of caution." His stated concern is that the City Charter does not grant Weinberg the power to enact a hiring freeze, and he argued that a decision to stop hiring employees because of a revenue problem is in essence a a budget amendment that should require council approval because.

Weinberg for his part, contended that his job as San Bernardino's top administrative professional requires him to have enough independence to decide when public funds can and cannot be spent prudently. In his view, the hiring freeze is an administrative decision, not a policy change.

After about an hour's worth of debate, the council voted 4-2 not to vote. 2nd Ward Councilman Dennis Baxter, seconded by 3rd Ward Councilman Tobin Brinker, moved to table the question of whether the council should ratify the hiring freeze. 5th Ward Councilman Chas Kelley and 6th Ward Councilman Rikke Van Johnson agreed.

Mayor Pat Morris did not need to cast a tie-breaking vote but agreed with Weinberg's view that the city manager should have the independence to make decisions like a hiring freeze without needing the council's approval.

"No" votes were cast by 1st Ward Councilwoman Esther Estrada and 7th Ward Councilwoman Wendy McCammack. Estrada and McCammack both agreed with Penman's interpretation of the law, expressed concern about diminishing city services and insisted that Weinberg produce a report to explain how the freeze will affect the city.

As of Monday night, it was unclear which services would be affected. Public safety is not a sacred cow, and Police Capt. Scott Paterson said in a telephone interview that there is a strong likelihood that the city will not meet its objective of hiring the 40 new officers promised under the Measure Z tax by June 30.

Today's City Council agenda includes an action item to ratify "a freeze on hiring, travel and training for Manager-Directed Departments" that interim City Manager Mark F. Weinberg sought to impose in mid-December.

The decision is part of the day's Consent Calendar, i.e. a package of decisions that city staffers recommend for approval by a single vote. Often these matters are considered routine aspects of city business but in San Bernardino, council members often choose to pull items from the Calendar to discuss specifics.

It's not a foregone conclusion that the council will ratify the hiring freeze, but it given the deteriorating economy, it seems likely.