City Council Meets Tonight

The Claremont City Council meets tonight at 6:30pm (no special closed session this week). You can watch the meeting online here, or you can go on down to the council chambers at 225 Second St. in the Claremont Village.

This is the last meeting before the council and the town's various commissions take the month of August off. Here's tonight's agenda.

We noticed a few things that grabbed our interest:

• Item 7 on the consent calendar is a recommendation by staff that the council adopt a memorandum of understanding (MOU) with the Claremont Police Management Association. If approved, it would cover the fiscal year that runs from July 1, 2010, to June 30, 2011.
  
  The MOU includes the union's concession of a 1.9% cost of living increase for this fiscal year. It also includes the implementation of a two-tiered CalPERS retirement system as a nod to the unsustainability of the present 3% at 55 pension plan for police officers. The MOU gives no specifics on the proposed two-tiered pension, and it only says that the details are subject to negotiation with the CPMA for the MOU for the 2011-2012 fiscal year.
  
  The MOU also continues the City's payment of the each employee's 9% contribution to CalPERS. It also continues the City's annual adjustment of it's portion of each employee's health insurance premiums.
  
  It certainly looks as if the council has done nothing more than push dealing with the employee pension problem out another year, and they've left it open to the CPMA to dictate what new employees would receive for their pensions.
  
  The refusal on the part of the council to make the tough decisions needed to fix the coming pension storm shouldn't be surprising. Three of the council members, Peter Yao, Sam Pedroza, and Linda Elderkin, are up for re-election next March. Pedroza and Elderkin are of the belief that they need to placate city employees, no matter what long-term damage their lack of action causes the City's finances. Neither, after all, are the brightest when it comes to financial issues (see Padua Park, which Pedroza and Elderkin pushed).
  
  You'd think that council member Larry Schroeder, being a retired municipal finance officer, would be able to tell the extent of the pension problems are out there on the city's financial horizon. On the other hand, he does receive a CalPERS pension himself as a former city of Lakewood employee, so perhaps he's willing to let the City take a hit out of some misplaced sense of solidarity..
  
  Pension reform has long been one of Council Member Yao's pet issues, so it will be interesting what, if anything, he has to say on the issue tonight.
  
  
  
• Staff is also asking the council to approve having liens totaling $83,624 placed against 16 abandoned, bank-owned properties. The properties all have delinquent fines that were levied by the City because of the owners' failure to properly maintain the properties.
  
  Among the deadbeat institutions are Bank of America, Wells Fargo, and US Bank (which took over PFF Bancorp).
  
  
  
• Items 12 and 13 on the administrative items portion of the agenda have to do with requests by staff for the council to approve Community Development Block Grants to two Claremont Packing House businesses - the Packing House Wine Merchants and Hip Kitty Jazz & Fondue Lounge. The grants are $50,000 each.
  
  The Hip Kitty grant would be used to pay for expansion into the space formerly occupied by the EMW Limited Gallery. Staff justifies the grant by saying it would create two full-time employee jobs.
  
  Jerry Tessier, whose company Arteco Partners restored the Packing House, has told staff that getting the grant would allow Tessier's Linus Partners LLC to obtain $45,000 more in financing to complete the Hip Kitty expansion.
  
  The Wine Merchants grant would be used to expand the business into the space that had formerly housed the Claremont Forum's book store. As with the Hip Kitty money, Jerry Tessier and Linus Partners LLC would use the $50,000 to qualify for $50,000 in additional financing and would use the total to complete the Wine Merchant's expansion.
  
  The funding for Claremont's CDBG program comes from the U.S. Department of Housing and Urban Development. These two grants follow a $150,000 CDBG last December to the new Casa Moreno Grill in the Village Expansion. Since the CDBG money comes from the federal government for job creation, it doesn't cost the City anything. Still, you have to wonder what factors City Hall uses to determine who gets the grants and who does not.
  
  Also, is there any favoritism involved? Because Tessier's fortunes and the City's are so completely intertwined in the Packing House and the Padua Hills Theatre, would they favor him over another equally deserving business?
  
  In the past, the City seemed to favor the Candlelight Pavilion when the council loaned them $175,000 in 2000 and again in 2006 when they had to renegotiate the loan terms after the Pavilion's owners had trouble making their promised payment.
  
  
• Administrative item 14 on tonight's agenda is proposal from staff to allow City Manager Jeff Parker enter into a lease agreement with Three French Hens and its owner Brenda Monahan. The lease is for the space in the Village Expansion parking structure that had been occupied by Bedol What's Next. The City would charge Monahan $1.50 per square-foot, or $1,800 a month for the 1,200 sq.-ft. space.
  
  Staff is also giving Monahan a $300 break on rent in exchange for her functioning as a "City Concierge," a duty that the staff report explains:
  

  Prior to opening staff will work with the tenant on creating the concierge space, which will provide an opportunity for guests to receive and view information on the City's businesses and the services and products they offer. They will also have a calendar with all of the things to do in Claremont on a monthly basis. They will provide in store space for other businesses to advertise its products especially in the food drink and entertainment arenas.
  

  
  Here we have to wonder why we're paying the Claremont Chamber of Commerce $40,000 a year to do much of what the City is asking Monahan to do at $3,600 a year? Do we really need that Chamber visitor's center on Yale Ave? Perhaps the City ought to be thinking about pulling the plug on that Chamber contract.
  
  Three French Hens should certainly benefit from the extra foot traffic generated from being a City Concierge, but, as with the Packing House grants, we wonder how the City decides when they get into the business of choosing economic winners and losers.
  
  
  
• The council will also consider recommendations from their Ad Hoc Commission Selection Committee, composed of council members Larry Schroeder and Corey Calaycay. These are the appointments suggested by the committee:
  

  Architectural Commission
  Mark Schoeman - reappoint to a four-year term
  James Sink - reappoint to a four-year term
  Henry Perera - appoint to a four-year term
  
  Community Services
  Pauline Bourne - appoint to a four-year term
  Antonia Castro - appoint to a three-year term
  
  Human Services Commission
  Robin Gottuso - reappoint to a four-year term
  Robert Miletich reappoint to a four-year term
  
  Planning Commission
  Jeff Hammill - reappoint to a four-year term
  Tom Lamb - reappoint to a four-year term
  
  Police Commission
  Barbara Musselman - reappoint to a four-year term
  Sayeed Shaikh - reappoint to a four-year term
  Laura Fragoso - appoint to a two-year term
  
  Traffic Transportation Commission
  Rob Poy - reappoint to a one-year term

  
  
  
  

Sorry State

The Claremont Chamber of Commerce is hosting the second annual "State of City" luncheon 11:30am today at the Candlelight Pavilion on Foothill Blvd. The Gas Co., Golden State Water Co., Southern California Edison, and VVS, Inc., are co-sponsoring the event.

The Chamber's website had this information:

State of the City Luncheon
Thursday, July 15, 2010, at 11:30 AM
Candlelight Pavilion
455 W Foothill Blvd.

Claremont Cost per person is $35 RSVP's to Marlene at 909-624-1681 or Marlene(at)ClaremontChamber.org with "State of the City" in the subject line.

We'll probably get the sanitized spin on how well the city is weathering the recession because it's in the Chamber's self-interest to justify the $40,000 per year the City pays them to attract businesses and visitors to Claremont. There will probably be no mention of those 140 foreclosed residences on the market or the empty commercial space around town.

There's been an ongoing argument, in and out of City Hall, regarding the Chamber's real usefulness. Is that money really all well-spent, or would we be better off hiring a professional firm to market the town. Of course, the buy-in for a credible marketing campaign would be much, much more than $40,000 a year. The question is, would a larger expenditure result in a higher return for the City?

One thing is for sure, the Claremont 400, who are without shame, are well-represented in the Chamber. The Chamber's immediate past chair is former mayor and Preserve Claremont organizer Paul Held. The chair-elect is failed council candidate Bridget Healy. And former mayor Sandra Baldonado, current mayor Linda Elderkin, and official council photographer Sonja Stump are among the current board members.

(By the way, Healy, whom the 400 have also welcomed into the ranks of the Claremont League of Women voters, will almost certainly be back for another run at the council once her resume plumping campaign is complete. Fool us once, shame on you; fool us twice....)

With the Chamber, you might just be getting what you pay for.

Sunday Mail

Catching up on our enormous mailbag backlog we found an email from a reader who commented on post about the Candlelight Pavilion's loan arrangement with the City of Claremont.

The reader offered up a possible win-win solution to help guarantee the city's loan - one that doesn't require an orchestral swell and breaking into song:

DATE: Monday, March 16, 2009 12:57 PM
SUBJECT: Candlelight Pavillion Theater City Loan
TO: Claremont Buzz

Dear Buzz,

The city has two options regarding the loan it has given to the Candlelight Pavillion Theater: one, it can forgive the loan completely or two, it can ask the Theater to repay the loan in full immediately.

In 2000 when the city approved the loan and a grant ($160,000 loan and $15,000 grant) there was a feeling that the Theater was a valued asset to the community, hence deserving of public support. The city approved the loan with a clear understanding of the risk, as stated in the staff report: "The nature of the loan and the current state of the property ownership and theater lease represent a repayment risk because of possible third-party actions."

The approved loan agreement stated that "If the theater closes due to the action of third parties the second ($80,000 ten-year repayment) component is forgiven."

Later the first $80,000 five year repayment plan, which was due in 2006, was amended (at the Theater's request) to amortize $55,000 over ten years after the Theater had paid $25,000. So the city could just forgive the loan voluntarily, or third party conditions at the site might lead the Theater to request forgiveness under the approved loan agreement.

Or, the city could initiate its own amendment to the loan agreement and ask the Theater to repay the full loan amount immediately. How will the Theater raise the money for the balloon payment? By obtaining a new private loan through the Small Business Administration (SBA). The city loan was granted at 6% and 10% interest rates. It is conceivable that under the Obama Administration's plan (announced on March 16, 2009) to help small businesses, the Theater could obtain a loan with more favorable conditions than the city's loan.

Under the plan, the Small Business Administration will increase loan guarantees to 90% from the current 85% on a loan up to $150,000 or 75% for a loan more than $150,000. The 90% SBA loan guarantee reduces lender risk, and the administration will temporarily eliminate upfront fees up to 3.75% or as much as $75,000 that are paid by borrowers.

This plan looks attractive. If the Theater takes advantage of the SBA plan, it can obtain a cheaper loan and be able to pay off the city loan. The Theater can offer a private bank the "20 theater production sets" as security. The city will in turn get its money back sooner to put in the budget at a time of pressing need.

* * * * *

We also received this note from a reader who saw our post about the job fair Congressman David Dreier is hosting April 8th. The reader wanted to offer an additional job resource:

DATE: Wednesday, March 18, 2009 3:28 PM
SUBJECT: Job News
TO: Claremont Buzz

One resource you forget to mention is the highly successful"community-based" project of Pitzer College professor Jose Calderon and his students, The Pomona Economic Opportunity Center. I'm sure our neighbors would be glad to assist any Claremont residents who wish to sign up at The Pomona Day Labor Center. This facility was started with $50,000 of Pomona citizens' tax money and currently Pomona "provides just over half the $330,000 budget" plus many other services. I also suspect that since Norma Torres is such a strong supporter of this type of solution to our economic problems, that her influence on President Obama may bring many more benefits to the patrons of the Day Labor Center.

• Article by Professor Calderon posted on the Pitzer College website
  
• Pomona Day Labor Center website
  

C-L-A-R-E-M-O-N-T, Where the Cash Comes Sweepin' Down the Plain

We were just sitting alone talking the other day, watching a hawk making lazy circles in the sky, when it occurred to us that we had the answer to Claremont's municipal finance problems.

You may not realize it, but back on November 14, 2000, the City extended a loan of $175,000 to the Candlelight Pavilion. The money was to help re-roof the Pavilion and to refurbish the old place.

Drive by today, and you can see how the money was put to good use.


Mostly, it was a favor to the Bollinger family, whose Ben Bollinger Productions, Inc., operates the Pavilion. The city staff report for the proposed loan was written like all Claremont city staff reports - as an advocacy piece rather than an actual objective analysis weighing the pros and cons of the deal. The council, of course, approved the loan.

On May 9, 2006, the matter came back before the council. Under the original arrangement, the Bollingers were supposed to pay back $80,000 in 2006, with another $80,000 due in 2011. However, the Bollingers wanted to restructure the repayment terms, partly because all the construction going at the Griswald's-Old Schoolhouse site had caused a decline in revenue at the Pavilion.

What did the City do? What they almost always do for their friends. Wanting to get along in polite Claremont society, they went ahead and renegotiated the terms of the loan, allowing the Bollingers pay back only $25,000 of the $80,000 due in 2006. For the remainder, the Bollingers pledged "over 20 theater production sets as security," and the $55,000 outstanding was rolled back into the loan.

The Candlelight Pavilion doesn't look to be doing all that well now, what with the construction around it dragging on and the economy being what it is. Our suggestion is this: In the best Hollywood tradition, we say, "LET'S PUT ON A SHOW!"

We can take those collateralized Candlelight Pavilion sets and put them to work. With all the money we make from the gate receipts, we can balance the City's shaky budget, finance a new police station, buy the water company, and build Marilee's Marsh.

The City Council, led by Councilmember Sam Pedroza, has apparently been thinking along the same lines. We saw this poster popping up in store fronts around town and on the Claremont Downtown Trolley:

(Click to Enlarge)

We know we belong to the land,
And the land we belong to is grand!
And when we sa-a-a-a-ay
Yeeow! Aye-yip-aye-yo-ee-ay!
We're only sayin'
You're doin' fine, Sam Pedroza!
Sam Pedroza S. A.!
(spelled quickly, then with emphasis) MPED-R-O-Z-A
Sam Pedroza! OK!

The City's just waiting for the money to come rolling in. Meanwhile, next door to the Pavilion in Claremont's Piano Piano bar, Sam is in rehearsal for the City Council's production of "A Chorus Line":

* * *

Candlelight at Candlelight

Reporter Will Bigham posted an article on the Daily Bulletin's website that said Tuesday night's closed session discussion over possible future litigation had to do with the Candlelight Pavilion located next to the Old School House and the Claremont Doubletree Hotel.

According to the article, the theatre has lost revenue because of the construction at the Old School House complex and has fallen behind on its rent:

Harry Wu, owner of the property on which the theater sits, says the dispute stems from the inability of the Candlelight Pavilion to pay its rent.

General Manager Mick Bollinger "has some back rent that he needs to pay, and he was trying to seek" financial assistance from the city, Wu said.

Attendance at the Candlelight Pavilion has been affected by construction projects going on in its immediate vicinity at the Old School House, Wu said.

City staff is apparently concerned about the possibility of a lawsuit by the theatre to recoup the lost revenue. The Pavilion might look to the city because of its involvement in the rehabilitation of the site through the Claremont Redevelopment Agency.

You can read more about the history of the site in the Old Schoolhouse/Claremont Inn Specific Plan.

(Click to Enlarge)

Image taken from Old Schoolhouse/Claremont Inn Specific Plan, page 18

Briefly Noted

New Neighbors The Insider hears that soccer superstar David Beckham and his wife Victoria (Becks and Posh to the British tabloids) are coming to Claremont. It couldn’t be a better match. His hegira to California was widely reported earlier this year, but now we know Claremont is the lucky town.

Beckham will bring needed star quality and celebrity status to the effort to complete Padua Park. His legendary “golden” right foot should have no trouble knocking that one into the goal.

Posh will have the perfect place to resurrect her Spice Girl singing career at the Candlelight Pavilion. Is “Forever Lace” in the offing?

This is not about the $250 million over five years that gets endless and tactless play in the press. Beckham said in January, “There are so many [American] kids that play baseball, American football, basketball. But soccer is huge all around the world apart from America, so that’s where I want to make a difference with the kids.” It's for the kids.

Rumor has it that Becks and Posh have already contacted a pair of local realtors--you have probably seen their pictures on your shopping carts. Look for the moving van soon in your neighborhood.

Another Move? Talking about moving, the Insider's sources tell us that newly-elected council member Sam Pedroza is about to flee South Claremont. He has told friends privately that just as soon as he was elected to city council he was going to move to north Claremont. Guess it will be up to Mike Maglio to carry the torch for our friends south of First Street.

This from Indio Shortly after decamping to the desert two years ago, former Claremont City Manager Glenn Southard approached his strong right arm, his assistant Bridget (the Hammer) Healy. Southard said, "Bridget, I need your wisdom, your counsel, your help, your guidance. Why is it that everybody here in Indio and in City Hall seems to take an instant dislike to me? " She paused, looked at him and said, "because it saves time, Glenn."

A Little Help from my Friends This advertisement was seen in the most recent number of the LA Weekly. No further comment.

Just remember today's date. You saw it here first on the Claremont Insider.