CITY MANAGER/ADMINISTRATIVE SERVICES DEPARTMENTS

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1 December 21, 2017 TO: FROM: Honorable Mayor and City Council Edward C. Starr, City Manager SUBJECT: CITY MANAGER S WEEKLY REPORT: December 15-21, 2017 CITY MANAGER/ADMINISTRATIVE SERVICES DEPARTMENTS Last week, I attended a community meeting in Claremont regarding a proposal from the Metropolitan Transportation Authority (Metro) to close the Claremont Metrolink Station by the end of Addressing attendees was a panel of local officials, including Claremont City Council Member and Gold Line Construction Authority Board Member Sam Pedroza, Gold Line Foothill Extension Construction Authority Representative Chris Burner, and Metro Representative Jeanet Owens.

2 Metro argues for the closure based on the proximity of the Claremont Metrolink station to the stations in Pomona and Montclair. Along the 14 station stops (Union Station, Cal State L.A., El Monte, Baldwin Park, Covina, Pomona North, Claremont, Montclair, Upland, Rancho Cucamonga, Fontana, Rialto, Santa Fe Depot, and San Bernardino) on the San Bernardino Line, no other Metrolink stations share the same close proximity. The separation between the Claremont station and the Pomona station to the west and Montclair station to the east is approximately 2 miles and 1 mile, respectively. Metro maintains that the cost to operate the 3 stations cannot be justified when elimination of 1 of the stations would not adversely affect service or inconvenience ridership; thus the proposal to close the Claremont station. If Metro acts to close the Claremont station in 2021, shuttle service would be established from the Claremont station to the Montclair station, allowing Claremont community Metrolink riders to continue parking at the Claremont station. The Construction Authority also indicated it would evaluate the need for a subsidy program to offset the extra $1 cost to ride from the Montclair Transcenter to Union Station a weekday roundtrip ticket from Claremont to Union Station is $18; from the Montclair Transcenter the cost is $19. Claremont residents largely rejected the proposal, insisting the community could not be left without train service until 2026, the expected year of completion of the Phase 2B extension of Gold Line light rail service. Claremont residents were also advised of the results of a Metro-initiated parking study that proposes moving away from constructing parking facilities at each of the 5 proposed Los Angeles County Gold Line stations (Glendora, La Verne, San Dimas, Pomona, and Claremont). Metro and the Construction Authority have no financial obligation for constructing parking facilities at Montclair Transcenter, located in San Bernardino County. In a separate but related matter, Public Works Director Derek Wieske and I attended last week s December meeting of the Gold Line Foothill Corridor Phase 2B Joint Powers Authority (JPA) Technical Advisory Committee. At the conclusion of the meeting, I was advised the Gold Line Construction Authority was preparing a separate $240 million application request for cap-and-trade funding for the Los Angeles County segment of the Phase 2B project, and that the Montclair Segment application request would be the responsibility of the San Bernardino County Transportation Authority (SBCTA). This separate application process was contrary to my understanding that the California State Transportation Agency (CalSTA), administrator of the transit portion of the cap-and-trade program, required that a $282 million application for the entire length of Phase 2B be filed jointly by the Construction Authority, Metro, and SBCTA. In an August 2018 meeting with the Deputy Director of CalSTA, I was advised a joint application is required because of the regional nature of the project (multi-counties), and because the project needed to demonstrate significant greenhouse gas emission reductions and connectivity to disadvantaged communities. 2

3 The Construction Authority agreed to speak with Metro to determine if a reconsideration of the application process was necessary to ensure compliance with CalSTA requirements. After confirming with Metro that a joint application is required, the Construction Authority will now merge its cap-and-trade application with Metro and SBCTA. The cap-and-trade application filing deadline is January 12, 2018, for the first of 2 consecutive 5-year funding cycles. Failure to have complied with the joint application process would have eliminated Phase 2B from further consideration for cap-and-trade funding. The combined effort of all players allows the Phase 2B cap-and-trade application to receive priority consideration over all other applications submitted from the Los Angeles metropolitan statistical area. COMMUNITY DEVELOPMENT/ECONOMIC DEVELOPMENT Consumers are spending more, both in stores and online, this holiday season compared to the last, according to an advance Bureau of Labor Statistics report on monthly sales for retail and food services in November The assessment found that Americans spent an estimated $492.7 billion last month on retail and food services, 5.8 percent above November 2016 sales. "This has been an impressive start to the holiday season, perhaps the best in the last few years," said Jack Kleinhenz, chief economist of the National Retail Federation, in a statement. "The combination of job and wage gains, modest inflation and a healthy balance sheet along with elevated consumer confidence, has led to solid holiday spending by American households." Online and retail sales show a bump of 10.5 percent more than last year's, and, in particular, building material and garden supply sales are expected to experience the biggest jump of approximately 11.2 percent, according to the Commerce Department's estimates. Electronics and appliance sales, as well as furniture and home furnishing sales, also experienced modest increases year-over-year. "Today s report is indicative of a strong consumer who is confident about the current and future state of the economy," Kleinhenz continued. Each month, the U.S. Census Bureau sends an advance survey to approximately 4,700 employer firms to estimate monthly sales by type of business for retail and food service firms located in the United States. In the December 2017 issue of California Economic Forecast, Mark Schniepp writes that despite the record numbers of retail closures this year, horrific fires, and the hurricanes in the United States, the consumer confidence index rose another 3.3 points in November to the highest monthly reading in a generation, or since December Americans view their current and future job prospects very favorably; ditto their income growth and their spending levels. Consumers have been the strongest and most consistent source of growth in the current economic expansion. 3

4 Last week s Gallup U.S. Economic Confidence Index rose sharply, at more than twice the rate as the average weekly gain observed over the past year. Like the Consumer Confidence Index, the Gallup poll measures American sentiment regarding both current and future economic conditions. The Gallup current condition component of the index rose to its highest level since Gallup began tracking economic confidence in The confidence indices are now at some of the highest levels ever recorded. Why? Because economic growth is accelerating, many people are employed, and homes are selling. Speaking strictly in terms of the economy, 2017 has been a good year and perhaps the best year during this up phase in the economic cycle, which began in July of The United States is now in year 8 of the economic expansion and by next summer, it will be in year 9. Economic expansions rarely go for 9 years but this one is clearly headed that way. We have no indications at this time that the economy is vulnerable. The economic expansion continues to power forward. Recent economic data have exceeded expectations and, in some cases, by a wide margin. Along with strong confidence in the economy, the unemployment rate is the lowest since 2001, and October existing home sales rose to their highest level since Furthermore, third quarter 2017 gross domestic product growth was revised higher, from 3.0 percent to 3.3 percent. The nation is now growing at the fastest pace since We are likely to see approximately 2.7 percent growth in the current quarter of 2017 with consumer spending leading the charge. Remember, hundreds of thousands of vehicles need to be replaced in Texas and Florida; and tens of thousands of homes need major repairs. The likelihood of recession over the next 6 months is at the lowest level since the risk of recession index was invented, back in If there is a chance that the economy will change over the next 6 months, it is likely going to be faster growth because of impending tax cuts, fire and hurricane rebuilds, infrastructure spending, and a rising stock market which is already at record levels. 4

5 HUMAN SERVICES DEPARTMENT At Monday night s City Council meeting, the Community Activities Commission (CAC) recognized the winners of the 2017 Holiday Home Decoration Contest. Twenty-four homes were judged during the second week of December and three winners were selected: Let There Be Lights! Marion Avenue Owned by the Mohsin Family Children s Wonderland 5415 Harvard Street Owned by Carlos Torres The Spirit of Christmas Bel Air Avenue Owned by the Gonzalez Family The winners received a framed certificate and a Los Portales gift card. Pictures of the winning homes are featured on Page 12. On Tuesday, many City staff members and volunteers participated in the City's annual sorting of food and toys, and yesterday, the actual distribution to needy Montclair families took place. Donations from City staff members, businesses, and members of the community helped provide baskets for 160 families. This year, we also received a special donation of turkeys from Los Portales. As always, it was wonderful to see the appreciation from the families who received the baskets. Special acknowledgement goes to the volunteers from the Police and Public Works Departments, as well as the Montclair Chamber of Commerce, National Core, the YWCA, and business and community members, for giving their time and energy to make the holidays so much brighter for needy families in our community. A photo collage of the sorting and distribution is shown on Page 13. 5

6 POLICE DEPARTMENT Police Department staff, family members, and friends joined in the Human Services Department's Holiday Food and Toy Basket distribution yesterday. Pictured L-R: Lt. Brandon Kumanski; Capt. Jason Reed; Isabel, McKayla, Monica, and Chief Robert Avels; and family friend, James Channell. Caleb Taylor and his dad, Detective Dave Taylor 6

7 PUBLIC WORKS DEPARTMENT While a major federal infrastructure bill will clearly not be completed in 2017, there is renewed hope for one in Earlier this month, continued efforts to establish a bipartisan infrastructure plan resulted in a meeting between congressional members of the Bipartisan Problem Solvers Caucus and Building America s Future, a bipartisan coalition of public officials from across the country. Led by U.S. Representatives Tom Reed (R-NY) and Josh Gottheimer (D-NJ), the Bipartisan Problem Solvers Caucus has established a working group to engage key stakeholders in developing core tenants of an infrastructure plan that meets the needs of all Americans. Reed, Gottheimer, and other leaders of the coalition met with former Pennsylvania Governor Ed Rendell and former Transportation Secretary Ray LaHood, leaders of Building America s Future, to discuss the infrastructure plan. "Our mission is to find bipartisan solutions to our nation s most pressing issues, which include making drastic improvements to our infrastructure," stated Reed. He added, "Like the rest of the country, New York is long overdue for the positive effects this will also have on job growth and our economy. We are thankful to gain insight and support from Gov. Rendell and Secretary LaHood and look forward to continuing our work to build a better future." Gottheimer said New Jersey s infrastructure is "a mess," and solving the country s infrastructure challenges in a fiscally responsible way can create jobs and boost U.S. competitiveness on the world stage. U.S. Rep. John Katko (R-NY), who heads the Bipartisan Problem Solvers Caucus working group, said people across the political spectrum agree that the "infrastructure crisis" has gone unresolved for too long. "Thursday s meeting was a positive step forward as we continue to develop bipartisan reforms and policy ideas to fix our nation s crumbling roads and bridges and set us on a path towards sustainable infrastructure," Katko said. "I look forward to working with members of the working group and the Problem Solvers Caucus as we finalize and release our infrastructure report. Refusing to maintain infrastructure is like refusing to maintain your car," Rendell said, "and if you refuse to invest, it will stop running." "Congress must work together with the administration to create a bipartisan bill that provides long-term funding," Rendell added. He also said, "We must look at infrastructure in terms of a robust investment. It s an investment because we are creating something of value that is impactful." LaHood said constituents are "sick and tired" of potholes and crumbling roads. "Investing in infrastructure is not only an economic development opportunity for your friends and neighbors, it s a no-brainer," LaHood said. He added, "We can t rebuild America unless we have funding, and that starts with raising the gas tax. Infrastructure must be a national priority or we will continue to fall behind as a nation." 7

8 It is a near certainty that there will be renewed interest in a federal infrastructure bill in 2018, and that Southern California is well positioned to receive funds for both unfunded and underfunded projects. This week, there has been quite a lot of activity in the public right-of-way, which is anticipated to continue into next week. First, Southern California Edison was approved to perform night work on Central Avenue to continue its power pole replacement project. In addition, the contractor for Monte Vista Water District s Central Avenue Water Mainline Replacement Project performed some minor work to test the new pipeline for bacteria. Unfortunately, the City was informed this week that while the first test was successful, the pipe did not pass the second test. This means the contractor cannot yet connect the new pipeline. In light of this information, City staff directed the contractor to suspend all activity on Central Avenue until after the holidays. This project has fallen significantly behind schedule and has been challenging for both City and MVWD staff. City staff will continue working closely with MVWD staff to bring this project to a close in January. Staff has also been working with Southern California Gas Company on the Benito Street Mainline Upgrade, and has informed them of the importance of cleaning up all roadways until they return to complete the work after the holidays. Next, Gentry Brothers, the contractor for the Orchard Street Rehabilitation Project, is wrapping up its final paving work this week. The final striping work will occur next week when school is out of session. Finally, Southern California Gas Company plans to also start the installation of a new communications facility in front of the Police Department next week, which will impact westbound traffic on Arrow Highway. 8

9 As required by the City s National Pollutant Discharge Elimination System (NPDES) Stormwater Permit, Montclair and 16 other agencies are required to prepare and submit an annual stormwater report to the Santa Ana Regional Water Quality Control Board (SARWQCB) by November 15 of each year. The permit is issued by the SARWQCB to operate a Municipal Separate Storm Sewer System (MS4 or storm drain system) and these agencies, collectively, are known as permittees. The County serves as the principal permittee and the cities are known as the copermittees. The purpose of the NPDES Annual Report is to describe the progress of the permit implementation activities of the permittees. This includes, but is not limited to, inspections, public outreach, sampling and monitoring, illicit discharges and connections, and new development. This report is a collaborative effort amongst the 17 agencies to gather this data and submit it to the San Bernardino County Flood Control District to create this report. ECS:spa Christmas is a season for kindling the fire for hospitality in the hall, the genial flame of charity in the heart. ~ Washington Irving 9

10 DECEMBER Winter Begins City Offices Closed in Observance of Christmas 25 Planning Commission Meeting - Canceled 10

11 JANUARY New Year's Day 2 City Council Meeting - Canceled Planning Commission Meeting Council Chambers City Manager's Staff Meeting City Hall Conference Room Community Activities Commission Council Chambers City Offices Closed in Observance of Martin Luther King Jr. Day Real Estate Committee Meeting City Hall Conference Room Code Enforcement/Public Safety Committee Meeting City Hall Conference Room City Council Meeting Council Chambers Safety Committee Meeting Civic Center South Conference Room Public Works Committee Meeting City Hall Conference Room Planning Commission Meeting Council Chambers City Manager's Staff Meeting City Hall Conference Room 7:00 p.m. 9:00 a.m. 7:00 p.m. 5:30 p.m. 6:15 p.m. 7:00 p.m. 10:30 a.m. 4:00 p.m. 7:00 p.m. 9:00 a.m. 11

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