Redlands council approves audit, water-policy changes, planning‑commission process and several maintenance and property actions

The Redlands City Council on Monday accepted the city’s comprehensive annual financial report for fiscal year 2023–24, approved a series of procedural and administrative items, and voted to adopt or introduce several ordinances and resolutions affecting water policy, utility protest procedures and maintenance contracts.

In a formal roll call the council unanimously accepted the independent audit and annual comprehensive financial report after a presentation by the city’s external auditors. Andrew Roth, partner at Pun Group LLP, told the council the audit produced an "unmodified," or clean, opinion and highlighted key figures including total city assets, net pension and OPEB liabilities and an increase in investment income that raised general revenues.

Why it matters: The clean audit confirms the city’s financial statements were presented fairly per U.S. GAAP and found no material weaknesses; the auditor also reported that the city’s available reserves exceed Government Finance Officers Association (GFOA) guidance for a rainy day cushion.

Other formal council actions and introductions

- Southern California Association of Governments (SCAG): Council designated Council Member Denise Davis as the voting delegate and Mayor Pro Tem Mark Shaw as the alternate to the SCAG general assembly in May 2025.

- Planning commission appointment process: Council directed staff to draft an ordinance formalizing a revised selection process for planning commissioners. The council also authorized formation of an ad hoc subcommittee (the mayor and mayor pro tem) to review applications and interview candidates for two current vacancies; the motion passed unanimously.

- SB 3 compliance and water-service policy: Council introduced Ordinance No. 2975 to update the municipal code consistent with SB 3 (state law expanding access to alternative payment plans for residential water customers) and adopted Resolution No. 8647 rescinding the prior residential-service disconnection policy. Staff clarified SB 3 requires offering alternative payment plans under defined conditions and does not categorically prohibit shutoffs for customers who are ineligible under the statute.

- Utility rate protest procedures: Council introduced Ordinance No. 2978 to establish an exhaustion-of-administrative-remedies process for challenges to fees and adopted Resolution No. 8657 to amend the municipal utility protest submission and tabulation procedure. Staff said the changes implement Assembly Bill 2257’s allowance for local administrative remedies and related liability limits.

- Operations and maintenance agreement amendment: Council approved Amendment No. 1 to a 2021 agreement with the San Bernardino County Transportation Authority (SBCTA) and the University of Redlands. The amendment moves station insurance to SBCTA’s policy with the city paying 50% of the cost.

- Donation of property adjacent to a city reservoir: Council authorized staff to accept an unsolicited donation of an approximately 8,000-square-foot parcel adjacent to a city-owned reservoir, subject to satisfactory due diligence.

- Wastewater membrane maintenance agreement (sole source): The council approved a 12‑year sole‑source preventative maintenance and replacement agreement for the membrane bioreactor (MBR) filters at the wastewater treatment plant with Xenon Environmental (now part of Veolia). City staff said the MBR system is specific to the plant and replacing it with a different technology would require costly retrofits. The motion recorded annual payments of $219,578; council approved the contract as presented.

What the auditors said: Andrew Roth summarized the audit scope and said the report reflects years of staff work and an unmodified opinion. "It was a clean opinion," Roth said, noting no findings were issued and that the city’s available fund balance met recommended reserve guidance.

Council procedure and next steps: Staff will return to the council with an ordinance and resolution to formalize the planning commission selection changes and will implement the administrative remedy procedures for utility rate protests. The wastewater maintenance contract and the other approved items move to implementation by the responsible departments.

Votes at a glance (selected items)

- Accept FY 2023–24 Annual Comprehensive Financial Report and independent accounts report: approved (unanimous). - Designate SCAG voting delegate and alternate (Denise Davis; Mark Shaw): approved (unanimous). - Direct staff to draft ordinance on planning commission selection and form ad hoc subcommittee (mayor and mayor pro tem): approved (unanimous). - Amendment No. 1 to SBCTA operations & maintenance agreement (insurance cost sharing 50%): approved (unanimous). - Accept donation of 8,000 sq ft parcel adjacent to reservoir: approved (unanimous). - Introduce Ordinance No. 2975 (SB 3 compliance) and adopt Resolution No. 8647 (rescind prior disconnection policy): introduced/adopted (unanimous). - Introduce Ordinance No. 2974 (expand Traffic & Parking Commission duties to non-motorized transportation): introduced (unanimous). - Introduce Ordinance No. 2978 and adopt Resolution No. 8657 (administrative remedies for utility protests): introduced/adopted (unanimous). - Approve 12‑year sole-source Xenon Environmental membrane maintenance agreement (annual payment stated in staff report): approved (unanimous).

Council members asked staff for follow‑up briefings on pension and OPEB liabilities and on the city’s rainy‑day reserve analysis. Staff emphasized that items affecting operations (insurance, maintenance agreements and ordinance drafting) will be implemented by the responsible departments and returned to council as required.