San Bernardino Approves Budget Amid Backlash Over $5.2M Legal Fees, $2M Police Vehicles, $500K Tree Contract

The San Bernardino City Council approved the city’s $348.7 million operating budget for Fiscal Year 2025-26 and the five-year Capital Improvement Program (CIP) through 2030 in a contentious meeting marked by talking over one another, disagreements, public outrage, and conflict of interest accusations.

The June 4 vote followed hours of heated debate, sparked first by Councilmember Theodore Sanchez’s last-minute recommendation to delay the hearing. Within minutes of speaking, Sanchez drew loud boos from the audience and was interrupted by shouts of “No!” led by former Councilwoman Kimberly Calvin and echoed by several dozen residents.

“The State mandates that we have one public hearing during a regularly scheduled meeting, which would be this. Then we could schedule and continue this in a special meeting,” Sanchez said. He cited unresolved staff concerns and major cuts to key services, including homeless encampment cleanups and tree removal. But the crowd was not having it. Mayor Helen Tran had to call for order.

Ultimately, Sanchez’s motion to delay was seconded by Councilmember Fred Shorett but failed. The audience erupted in laughter after Sanchez’s motion was voted down.

Council Spars Over Transparency

Councilmember Dr. Treasure Ortiz challenged Sanchez’s timing and commitment to transparency, stating, “We’ve had two workshops, and Councilwoman Knaus was diligent in going department by department asking questions. If you have questions about the budget Councilman Sanchez, they should be asked in front of the public here tonight.”

Interim City Manager Bill Gallardo, who will be replaced by Eric Levitt on August 4, presented the budget. He said, “We have presented a balanced general fund budget. We have a recommendation to draw down reserves to invest in community infrastructure.”

Where the $348.7 Million Budget Is Going

The approved FY 2025-26 budget allocates:

• $125.1 million to the General Fund
• $84.7 million for Special Revenue Funds
• $40.1 million for Internal Service Funds
• $35.7 million for Enterprise Funds
• $34.2 million for Capital Project Funds
• $14.9 million for Debt Service Funds
• $13.9 million for Permanent and Trust Funds

These figures are intended to support core services such as public safety, infrastructure, and community services, while also funding major capital improvements.

Legal Services: BB&K Under Scrutiny

Public frustration grew during discussions on skyrocketing legal expenses—most notably the $2.5 million projected to be paid to law firm Best Best & Krieger (BB&K), which has held the city attorney contract since August 1st, 2018. 

Ortiz disclosed that BB&K was charging the city roughly $211,000 per month. She added, “The city is spending nearly half a million dollars a month on legal services between BB&K and other outside attorneys—and that doesn’t include settlements.”

When Ortiz asked BB&K Attorney Albert Maldonado what the extra charges covered, he cited labor and employment law, Prop 218, economic development, bankruptcy work, “and a number of other things that require expertise and a specialty.”

“Why are we being charged $1.5 million above our retainer?” Ortiz pressed.

Ortiz continued, “The cost we’re paying BB&K sounds like nothing when you say one percent. But one percent of hundreds of millions is a lot. And for one firm to go unchecked and question the council when we ask questions is irresponsible.”

Maldonado pushed back by comparing BB&K’s current cost to previous firms, citing legal costs between $6.5 million and $8.8 million from 2015–2018.

Councilman Sanchez then spoke in response to Ortiz. He provided a hypothetical saying, “Let’s say, there is an elected official who decides to sue the city for $2 million and that individual goes into litigation with the city. Could that cost the city $100,000 in legal fees to fight?”

Sanchez was seemingly referring to Councilwoman Dr. Treasure Ortiz who recently sued the city, alleging police illegally ran her name through criminal databases and sought to sway the 2024 campaign. Ultimately, the claim was denied.

Sanchez continued, “I know we have in the past litigated cases in defense of the city that have cost us anywhere between $100,000–$300,000 dollars. These things happen and we get sued. In order to aggressively fight for the interest of the city, we have to be able to litigate this in a courtroom. That costs the city money.”

Ortiz responded with her own hypotheticals, “If a previous mayor didn’t sexually harass staff, we wouldn’t have paid $1.6 million (a direct jab at former Mayor John Valdivia). If we hadn’t violated rights, we wouldn’t face lawsuits. If we maintained sidewalks, we wouldn’t face $100 million in deferred maintenance.”

Later in the discussion, Mayor Helen Tran, while addressing the public, said, “The legal cost continues to rise, so when you see a rising cost for contract services what do you do? You do an RFP, which I presented at the last council meeting and it was shot down. Now, going through the budget process, I hope that the council will consider conducting an RFP for bidding.”

She continued, “When we have to be the overseer of your tax dollars, we have to do our due diligence to make sure services are done and spent wisely.”

Councilmember Sanchez interjected, “It’s not related to the conversation.”

Tran shot back, “When you speak, I don’t disrupt you. But when I speak you are very rude and disrespectful, Councilmember Sanchez. You talk about putting forward Rosenberg Rules, but you always jump in without being called or recognized. Allow me to speak. Thank you!”

“Litigation expenses are budgeted to be 1 percent of your general budget in this proposal,” said business owner Alan Stanly during public comment. “We the taxpayers demand you put the BB&K contract up for bid. It’s your duty.”

Tree Trimming Proposal Raises Eyebrows

Sanchez proposed using $500,000 in unassigned fund balance to address an estimated 3,000 dead trees in the city. “We can go ahead and spend half a million on streets replacing two city blocks if we’re lucky. This half million can address 3,000 dead trees in San Bernardino and it’s a one-time cost. Let’s hire an efficient contractor to come out and stump grind these trees.”

Councilmember Sandra Ibarra made a second for the proposal. City Manager Gallardo noted this would be a one-time allocation from the unassigned fund balance.

Councilmember Ortiz inquired whether a new Request for Proposals (RFP) would be required for this contract. Staff confirmed it would not, since an existing contract remains in place.

That existing contract is with West Coast Arborists, a tree service provider based in Grand Terrace. However, FPPC campaign finance records show that West Coast Arborists donated $500 to Sanchez’s campaign on January 25, 2021.

$2 Million for Police Vehicles Approved

Another hot topic: Sanchez’s motion to allocate $2 million from unassigned funds to purchase police vehicles. He argued the San Bernardino Police Department needs reliable transport to respond to emergency calls.

“These vehicles are a one-time purchase,” Sanchez said. “Whether it’s through Fairview Ford or leasing, we need to ensure availability.”

Fairview Ford, a previous campaign donor, contributed $3,500 to Sanchez’s 2021 campaign. The San Bernardino Police Officers Association (SBPOA) also donated the maximum $4,900.

Councilmember Ortiz questioned whether the city already had a lease agreement with Enterprise. Staff confirmed that 27 new patrol cars are currently on-site but awaiting outfitting. Half of the vehicles were acquired through a lease agreement, and the other half through outright purchase.

Police Chief Darren Goodman explained that the department is struggling to maintain an operational fleet. “We are on our way to improving our position with vehicles. But we have a lot of vehicles out of service due to accidents and aging,” Goodman said. “The ones we have on order are only replacing those we’ve lost. We’re still behind. Right now, officers are doubling up on patrol cars. We need enough for each officer and extra to avoid a crisis when a vehicle is taken out of service.”

It was also noted by public works staff that the Enterprise lease is being suspended—not canceled—pending development of an accurate vehicle replacement plan.

“Before I got here, I was told we went a few budget cycles without being budgeted for vehicles,” Goodman added. “Having guaranteed cash allows us to plan better.”

Mayor Pro Tem Juan Figueroa asked Goodman, “Chief, in regards to time officers spend driving to the West valley Detention Center, would it be more efficient for us to contract with a transportation regency in order to keep our officers in town? So that they spend more time on our streets.”

Budget Manager Zuyva Ruiz confirmed that a $700,000 contract for jail transport services was already in place. The service, meant to outsource booking and transport arrestees to West Valley Detention Center—remains active and is included in the police department’s budget. The contract allows a third-party service to complete booking paperwork and transport detainees, helping retain officers in the field and improving response times. Chief Goodman acknowledged he had thought the proposal had been cut due to prior discussions but welcomed continued internal conversations on the matter. Ruiz again emphasized to Goodman that she can guarantee the $700,000 for transport services is already in SBPD’s budget. 

Councilmember Ortiz requested a formal staff report to clarify all lease agreements, how many police vehicles are in use, out of service, or pending delivery.

City Manager Gallardo confirmed staff would return in 30 days with the requested data.

Despite lingering questions, the $2 million police vehicle funding passed with only Ortiz and Councilmember Mario Flores voting in opposition. It was also stated that more funds may be needed to garner an adequate police vehicle fleet. Although the $2 million was allocated, city staff will still provide a report of requested data at a later date to address any further budgeting gaps. 

Concerns of Conflicts and Influence

IECN reviewed Campaign Finance Disclosures after multiple residents raised concerns that Sanchez’s budget proposals disproportionately benefited past donors. Alongside West Coast Arborists, the SBPOA, and his mention of Fairview Ford–were among contributors to his 2021 campaign.

Residents voiced concern during public comment and face to face with IECN over the appearance of favoritism. But, Sanchez’ proposals could also just be coincidence. 

Overall, the City is ahead of the game finalizing the budget about a month before the deadline. The adopted budget includes key one-time proposals in Q1 of FY 2025/26, including additional street work, facility upgrades, and operational enhancements. 

As Councilmember Ortiz put it, “It’s vital for residents to know exactly how their money is being spent.”

The final adopted budget will incorporate modifications made during the June 4 hearing.

Full budget can be found here. 

[NOTE: The 2025/2026 budget is attached and begins on page 22.]