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HomeMy WebLinkAbout06-06-2001 Minutes MINUTES MAYOR AND COMMON COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO JOINT ADJOURNED REGULAR MEETING JUNE 6, 2001 ECONOMIC DEVELOPMENT AGENCY BOARDROOM This is the time and place set for a joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino from the joint regular meeting held at 8 a.m., Monday, June 4, 2001, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. The joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission was called to order by Mayor Valles at 2:10 p.m., Wednesday, June 6, 2001, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Mayor Valles; Council Members Estrada, Lien, McGinnis, McCammack; Senior Assistant City Attorney Carlyle, City Clerk Clark, City Administrator Wilson, Economic Development Agency Executive Director Van Osdel. Absent: Council Members Schuetz, Suarez, Anderson. BUDGET DELIBERATIONS - FISCAL YEAR 2001/02 - DISCUSS & TAKE POSSIBLE ACTION CONCERNING PROPOSED CITY & ECONOMIC DEVELOPMENT AGENCY (EDA) BUDGETS (1) Mayor Valles stated it was important to note that City staff surveyed the community, held several workshops, and identified several goals that should be tied to the budget during discussion of expenditures and allocations. The City's Vision and Mission Statements were read for the benefit of the viewing audience. COUNCIL MEMBER ANDERSON ARRIVED At 2:13 p.m., Council Member Anderson arrived at the Council meeting and took her place at the boardroom table. COUNCIL MEMBERS SCHNETZ & SUAREZ ARRIVED At 2:14 p.m., Council Members Schnetz and Suarez arrived at the Council meeting and took their places at the boardroom table. 1 6/6/2001 Fred Wilson, City Administrator, indicated that the purpose of the meeting was to discuss both the Agency's and the City's goals and priorities and to review both budgets. Mr. Wilson stated that the Capital Improvement Program (CIP) budget was being finalized and would be reviewed next week. Gary Van Osdel, Economic Development Agency Executive Director, submitted a staff report dated May 17, 2001, regarding the Economic Development Agency Fiscal Year 2001-2002 Budget. Mr. Van Osdel stated that it was interesting to note that the Agency's top goal is maintenance of financial stability, when only two years ago there were discussions that the Agency was headed down a disastrous path if policies of the previous administration were followed, such as using surplus funds to make ends meet-surpluses used to pay for the master service agreements. Mr. Van Osdel stated that the need for the gradual diminishment of the master service agreements and its impact on the Agency budget was discussed, and it was suggested that in fiscal year 2001-2002 if all went well, the Agency would have a balanced budget. Mr. Van Osdel stated that the Agency could present a balanced budget at this time; however, they did not anticipate costs associated with the City's lawsuit against Alvarez and Associates, and since the total costs were not known, it was not known what impact those costs would have on the Agency's budget. Mr. Van Osdel stated that the Agency's cash flow projection for fiscal year 2001-02 is a positive $1,300. Barbara Lindseth, Economic Development Agency Administrative Services Director, presented a broad overview of the Agency's budget, stating that 94 percent of the budget consisted of ongoing items already set by contracts and/or bonds-things the Agency did not have much control over, and approximately 6 percent of the budget consisted of discretionary items. Mr. Van Osdel noted that the Council had the authority to reprogram CDBG, HOME, and ESG funds at any time. Ms. Lindseth reviewed the following documents that were submitted for the Council's review: . 2001-02 Fiscal Year Revenue and Expenditure Surnnmry Worksheet, Page A; . Existing Obligations, Bond Payments, Projects and Programs, Page B; . Discretionary Expenditures, Page C; and . 2001-02 Cash Flow Analysis, Tax Increment/Bond Proceeds, Page D; . Cash Flow Analysis - Tax Increment, Combined Project Areas as of March 30, 2001, Page A; . 2001-02 Cash Flow Analysis, Tax Increment/Bond Proceeds, Page B; . Tax Increment Fund Projections for the Fiscal Year 2001-02 (As of March 30, 2001), Pages C-D; . Cash Flow Analysis - Tax Increment, Pages 1-22. 2 6/6/2001 Council Member Lien stated that the staff report indicated that the budget did not contain sufficient funds to complete two of the six project area amendments for eminent domain, and asked which two they were referring to. Mr. Van Osdel stated that they would start with the Mt. Vernon Corridor and Central City South, the next two would be the Uptown and Central City North, with the last two being Central City East and Central City Projects. Council Member Estrada asked if the Agency would do more if there were sufficient funds. Mr. Van Osdel stated that they wanted to take them two at a time because it would be cumbersome in light of the fact that they have to mail notices to everyone in all the project areas. Mr. Van Osdel indicated that certainly if the Agency had the money now, they would like to move right ahead with the next two. Council Member Lien asked if the Agency anticipated completing four during this fiscal year. Mr. Van Osdel answered in the affirmative. Ms. Lindseth stated that when she originally budgeted, she thought there would be sufficient funds for all of them, but after looking al the expenditures she realized there would not be. Mr. Van Osdel stated that when they began the process of amending the project areas, it was the attorney's opinion that this would probably be a six-month process, but they realized there were a few more steps involved, one of which was updating the blight reports, and then they would have to do the environmental reports. Council Member McCammack asked what was the cost per project area. Ms. Lindseth stated that they were looking at $60,000 for the Central City North, East, Meadowbook and Uptown, and the cost for the remaining two would be $30,000. Mr. Van Osdel stated that the Agency was grateful that the Council approved the HUB project because in a meeting with officials from Fisher Scientific regarding a pending move to this area of the country, one of the things that came up was the appearance of the base and the surrounding areas and what, if anything, was going to be done to improve those areas. They were concerned about being the firsl one on the block into what appeared to be a rather blighted neighborhood, and staff was able to inform them of the plan that had just been to the Council, and of the adoption of the EIR and the Disposition and Development Agreement. Mayor Valles asked staff if they could recall when the Agency's budget was in the black. 3 6/6/2001 Ms. Lindseth answered that the Agency had been operating in a deficit for at least the last ten years. Mayor Valles stated that it was important to put things into historical perspective, because although it did not seem like a lot, the Agency had done well during the last few years. Mayor Valles encouraged the Council to contact Ms. Lindseth if they had any questions or needed clarification relative to EDA's budget prior to the next meeting. Council Member Estrada stated that she wanted to petition the Council to look closely at those programs the Agency continues to support that really should be on the City's side of expenditures. For example, Ms. Estrada noted that with the Costco reimbursement the City collects the sales tax and the Agency pays that amount out of tax increment. She agreed with the Mayor that the Agency had come a long way in three years and that $1300 was something to be happy about, but stated that they could be doing a lot more if they had the resources they were entitled to in order to generate more projects in the community. Ms. Estrada stated that because the Agency did not have any money to make up for more sales tax commitments, she felt the City should look at the expenditures the Agency continues to fund from which the City benefits. She expressed concern that it was not right for the City to have a large surplus if it was offsetting that with money from the Agency to pick up City costs. Ms. Estrada stated that the Agency could not move forward because it had committed all of its money to other projects, and she hoped the Council would specifically look at the EDA budget along those lines. Mayor Valles claritied that she did not encourage the word "surplus" to be used because it was not a surplus. She stated that a surplus was a reserve to be used as specific one-time project monies. The Mayor stated that she hoped the time would come when the City would not have to continue to use sales tax rebate dollars as incentives. Mr. Wilson noted that since the Mayor was elected, the City has been pushing for the need to have a strong reserve. He stated that a ten-percent reserve was being proposed for this year's budget. Mr. Wilson stated that over the years departments have paid a price to meet the bottom line because of the need to focus on the reserve. Mr. Wilson stated that Barbara Pachon, Director of Finance, would make a presentation on the revenues, then the Mayor would identify some recommendations on how 10 deal with other funding needs. Ms. Pachon reviewed the following documents that were submitted for the Council's review: . City of San Bernardino, Estimated Revenues and Expenditures, FY 2000-2001 General Fund; . FY 00-01 Utility User Tax Revenue Projections by Category (2 pages); . Comparison of FY 2000-01 to FY 2001-02 Budget Funding Levels (2 pages) 4 6/6/2001 Ms. Pachon provided an overview of revenues and expenditures and highlighted several line items under Section 2, Budget Summaries, contained in the City of San Bernardino Preliminary Detail Budget for Fiscal Year 2001-2002, pages 1-33. RECESS MEETING At 3:39 p.m., Mayor Valles declared a five-minute recess. RECONVENE MEETING At 3:50 p.m., Mayor Valles reconvened the joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission of the City of San Bernardino. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Mayor Valles; Council Members Estrada, Lien, McGinnis, Schnetz, Suarez, Anderson, McCammack; Senior Assistant City Attorney Carlyle, City Clerk Clark, City Administrator Wilson, Economic Development Agency Executive Director Van Osdel. Absent: None. Mr. Wilson reviewed the major expenditure changes included as part of the Budget Message in Section 1 of the City's budget, pages v-vii. Council Member McGinnis stated that he would like to see an additional ten percent added to Animal Control's budget, suggesting that it be put into a savings fund for a new facility. Mr. McGinnis suggested that the facility be centrally located and possibly include one or two neighboring cities. Mr. Wilson advised that the Council should be aware of the following issues: (1) the likelihood that shortfalls at the state level may affect the City next year; (2) because this was the last year the City would be considered super over-funded, the City could see an increase in expenditures of approximately $1. 5 million next year that it would have to automatically budget for; (3) the City identified $1.5 million to fund the Mayor's proposed rebate program; (4) $10-$11 million had been identified for the Santa Fe Depot Rehabilitation Project, and the construction cost estimates which were due this month would indicate whether it was adequately funded or if it would require additional funding; (5) the issue of transportation funding including the water projects, I-215 funding, and the pavement management system; and (6) the Lakes and Streams Project and the need to recognize that there may be costs in the future. Mr. Wilson stated that the City proposed increasing its reserves by ten percent and even by doing that, indicated that there would be additional dollars available that could be allocated for priorities. He announced that the Mayor identified several areas to focus on such as: (1) Increasing the reserves goal of ten percent; (2) Image enhancing infrastructure investments; (3) Staffing issues - department reorganizations; (4) Other one-time funding needs such as facilities maintenance improvements, fire stations, fire safety needs, etc. 5 6/6/2001 Council Member Estrada asked how the City could project a good image when it did not appropriate the manpower or the necessary tools to do the job. Mr. Wilson stated that departments were preparing long-term staffing plans over the next five years in terms of what they think they would need. Council Member Lien requested a list of the unfilled positions per department. Mayor Valles stated that she felt the Council was armed with enough information and urged them to contact staff if they had any questions or concerns relative to the City's budget. ADJOURNMENT (2) The meeting was adjourned at 4: 17 p.m. The next joint adjourned regular meeting of the Mayor and Common Council and Community Development Commission will be held at 4 p.m., Thursday, June 14, 2001, in the Economic Development Agency Boardroom, 201 North "E" Street, San Bernardino. RACHEL G. CLARK City Clerk BY~n~d.xldk~) Linda Sutherland Deputy City Clerk No. of Items: 2 No. of Hours: 2 6 6/6/2001