Tuesday, October 22, 2013
Open Board of Directors Meeting
San Bernardino Community College District
114 S. Del Rosa Drive
San Bernardino, CA 92408
Present: Dimitrios Alexiou, Deborah Barmack, Tom Brickley, Erin Brinker, Ann Bryan, Ken Coate, Bill Easley, Ray Gonzalez, Dick Hart, Scott Hofferber, Mark Kaenel, Al Karnig, Lowell King, Ed Lasak, Bill Lemann, Sue McKee, John Mirau, Tom Nightingale, Steve PonTell, Frank Schnetz, Kristine Scott, Larry Sharp, Paul Shimoff, Steve von Rajcs, Phil Waller.
Guests: Eden Casareno, Mike Gallo, Rod Hoops, Jim Lambert, Pam Langford, Jim Morris
Announcements: 1) Members were asked to please consider joining the Inland Action sponsored Business Coalition for Express Lanes and to participate in the luncheon program Decision Time Ahead: Tolls, Carpools or Congestion that will be held on Wednesday, November 6, 2013. Detailed information is on the Inland Action web site home page. Click on Pressroom. 2) The Southern California Water Committee will hold its 29th annual meeting and dinner on Thursday, October 24, 2013 at the Pacific Palms Hotel & Conference Center. For more information please use the following link http://www.socalwater.org/events-and-calendar/197-save-the-date-scwc-29th-annual-dinner-oct-24 3) A groundbreaking ceremony for the 91 Project through Corona and Riverside will take place at 11:00a.m. on Wednesday, December 11, 2013 at the North Main Corona Metrolink Station Parking Structure, 250 E. Blaine St., Corona. 4) A Majority of the members present voted to extend the invitation of membership to The California Apartment Association.
M/S/P: Minutes from October 15, 2013
Tom Brickley introduced City of San Bernardino, Mayor Pat Morris.
Mayor Morris discussed the full depth of a municipal bankruptcy which includes four levels of insolvency and the Ten-Year Financial Recovery Plan for San Bernardino that he unveiled at the State of the City address held on October 8, 2013.
Regaining financial solvency for the City of San Bernardino means much more than settling with creditors in bankruptcy. Mayor Morris explained that without fundamental changes the city will have a $360 million dollar deficit in ten years. They must modernize the city charter and make major changes in delivery of essential city services to reduce labor costs (which includes public pensions).
The city leaders who will be elected next month must abandon the status quo and make the necessary changes for the future. The purpose of the Ten Year Plan is to create a financial starting point. His Ten Step Plan is summarized as follows:
Step 1) Maintain access to capital markets to bond for work needed to eliminate the city’s infrastructure deficit in ten years.
Upfront capital is needed to accomplish the city’s $183 million infrastructure deficit and will bring streets, sidewalks, parks, public buildings and other facilities to a basic level of acceptable condition. It does not address any improvements or upgrades. The components are:
- · $88.5 million-Streets, sidewalks and transportation systems
- · $91 million-Parks, libraries and other buildings
- · $3.5 million-Miscellaneous public facilities
Step 2) Reduce general fund labor costs to save $10million annually
The city cannot reduce its workforce any more than it already has so must look at different service delivery systems. Two methods are:
- · Contract out services for public safety services.
- · Reduction in salaries and pension costs through negotiations with city employee unions and repeal of Charter Section 186.
Step 3) Close four Fire Stations (based on low service levels) will save $7 million annually.
- · San Bernardino has many more fire stations than comparable cities
Step 4) Reduce funding for fleet replacement and City Attorney services
- · If successful with contracting out services 85-90% of the antiquated fleet will not need replacement $1.6 million annually will be saved
- · City Attorney services are largely driven by the city’s workforce & activities. If many services are contracted out a 60% savings should be expected from the current City Attorneys $4 million budget creating $2.4 million in savings
Step 5) Restructure debt with creditors in bankruptcy to save $3 million
Step 6) Extend the Utility User Tax to city operations (water, sewer and refuse) creating additional revenue of $4 million annually.
Step 7) Franchise refuse services which will create $2-$2.5 million annually from franchise fees.
Step 8) Transfer sewer collection system to the water department and adjust rates to pay for critical repair and replacement of failing system.
Step 9) Extend Measure Z to ensure the needed revenue stream.
- · This ¼ percent increase in the local sales tax set to expire in 2021 must continue for financial stability
Step 10) The city of San Bernardino must endorse the proposed California constitutional amendment allowing public agencies to control future pension costs.
A Q & A period followed.
Steve PonTell spoke about National Community Renaissance plans for the redevelopment of the Waterman Gardens Public Housing project in San Bernardino. The plan called The New Gardens, would update obsolete buildings and add new market rate apartments that are well designed and will be well managed. The New Gardens plan creates a comprehensive strategy for improving the overall physical, social, and economic conditions in this troubled San Bernardino neighborhood.
The meeting adjourned at 8:35 a.m.